ANNUAL COMPREHENSIVE
FINANCIAL REPORT (ACFR)
FISCAL YEAR ENDED JUNE 30, 2023
CITY OF MENIFEE
CALIFORNIA
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CITY OF MENIFEE, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
Prepared by:
Finance Department
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CITY OF MENIFEE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION (unaudited)
Letter of Transmittal ................................................................................................................................ i Listing of Elected Officials ..................................................................................................................... vi Organizational Chart ............................................................................................................................ vii Executive Staff ..................................................................................................................................... viii GFOA Award of Financial Reporting Achievement ............................................................................... ix
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT ................................................................................................ 1
MANAGEMENT’S DISCUSSION AND ANALYSIS .............................................................................. 4
BASIC FINANCIAL STATEMENTS
Government - Wide Financial Statements
Statement of Net Position .......................................................................................................... 13
Statement of Activities .................................................................................................... ........... 14
Fund Financial Statements
Balance Sheet - Go vernmental Funds ...................................................................................... 15
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................................... 16
Statement of Revenues, Expenditures and Changes in Fund Balances - Government al Funds ................................................................................................................. 17
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .............................................................................................................. .................. 18
Statement of Fiduciary Net Position - Fiduciary Funds ............................................................. 19
Statement of Changes in Fiduciary Net Position - Fiduciary Funds .......................................... 20
Notes to Financial Statements ......................................................................................................... 21
CITY OF MENIFEE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - General Fund .......................................................................... 52
Budgetary Comparison Schedule - Development Impact Fees ...................................................... 53
Budgetary Comparison Schedule - Grants Fund ............................................................................ 54
Schedule of the City’s Proportionate Share of the Pension Plan’s Net Pension Liability and Related Ratios as of the Measurement Date .......................................................................... 55
Schedule of the Pension Plan’s Contributions ............................................................................... 56
Schedule of Changes in the Total OPEB Liability and Related Ratios .......................................... 57
Notes to the Required Supplementary Information ......................................................................... 58
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Non-major Governmental Funds Descriptions ................................................................................ 59
Combining Balance Sheet - Non-major Governmental Funds ....................................................... 63
Combining Statement of Revenues, Expenditures and Changes ... in Fund Balances - Non-ma jor Governmental Funds ................................................................ 67
Budgetary Comparison Schedules - Special Revenue Funds
Gas Tax ..................................................................................................................................... 71 SB 1 ........................................................................................................................................... 72 Measure A ................................................................................................................................. 73 Air Quality Management District ................................................................................................ 74 Landscape and Lighting Maintenance District .......................................................................... 75 Community Facilities District - Audie Murphy Ranch ................................................................ 76 Community Facilities District - Hidden Hills ............................................................................... 77 Community Facilities District - 2014-1 Town Center ................................................................. 78 TUMF Fees ................................................................................................................................ 79 Community Facilities District - 2014-2 Commerce Point ........................................................... 80 Community Facilities District - 2015-2 Citywide ........................................................................ 81 Community Facilities District - 2017-1 Maintenance Services .................................................. 82 Public Education and Governmental Access ............................................................................ 83 County Service Areas (CSA) ..................................................................................................... 84 Maintenance CFD ...................................................................................................................... 85
Budgetary Comparison Schedule - Capital Projects Fund
Bonded CFDs ............................................................................................................................. 86 Capital Projects Fund ................................................................................................................ 87
Budgetary Comparison Schedule - Debt Service Fund
Debt Service .............................................................................................................................. 88
CITY OF MENIFEE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION (unaudited)
Statistical Section Descriptions ................................................................................................. 89 Net Position ............................................................................................................................... 90 Changes in Net Position ............................................................................................................ 92 Fund Balances of Governmental Funds .................................................................................... 94 Changes in Fund Balances of Governmental Funds ................................................................ 96 Major Revenues by Source - Governmental Funds .................................................................. 97 Assessed Value and Estimated Actual Value of Taxable Property ........................................... 99 Assessed Value and Estimated Actual Value of Taxable Property by Use Category ............. 100 Direct and Overlapping Property Tax Rates ........................................................................... 101 Principal Property Taxpayers .................................................................................................. 102 Property Tax Levies and Collections ....................................................................................... 103 Ratio of Outstanding Debt by Type ......................................................................................... 104 Ratio of General Bonded Debt Outstanding ............................................................................ 105 Direct and Overlapping Bonded Debt ..................................................................................... 106 Legal Debt Margin Information .................................. ..... ........................................................ 107 Demographic and Economic Statistics .................................................................................... 108 Principal Employers ................................................................................................................. 109 Full and Part-time City Employees by Program ...................................................................... 110 Capital Asset Statistics by Function/Program ......................................................................... 111 Operating Indicators by Function/Program ............................................................................. 112 Miscellaneous Statistics .......................................................................................................... 113 Taxable Sales by Category ..................................................................................................... 114 Top 25 Sales Tax Producers ................................................................................................... 115 Measure DD 1% Sales Tax - Revenues and Expenditures History ………………………….... 116
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INTRODUCTORY SECTION
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December 21, 2023
Honorable Mayor, Members of the City Council & Citizens of the City of Menifee, California
It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) for the City of Menifee (City) for the fiscal year ended June 30, 2023. The City annually issues a report on its financial position and activity, audited by an independent firm of certified public accountants. The City’s Finance Department prepared this report in accordance with generally accepted accounting principles (GAAP), as set forth by the Governmental Accounting Standards Board (GASB) and other sources. This ACFR also conforms to GASB St atement No. 34 financial report standards, providing the reader a dual-perspective financial report. The report contains a citywide view of all governmental activities, as well as a focus on the financial position and operating results of the City’s major funds.
Responsibility for the accuracy of the data, and the completeness and fairness of the presentations including disclosures, rests with the City. To provide a reasonable basis for making these presentations, management has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the presentation of the City’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. Also, all disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included.
Rogers, Anderson, Malody & Scott, LLP, Certified Public Accountants, have issued unmodified opinions on the City of Menifee’s financial statements for the year ended June 30, 2023. The independent auditor’s report is located at the front of the financial section of this report.
Generally accepted accounting principles requires that management provide a narrative introduction overview and analysis to accompany the basic financ ial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of tr ansmittal is designed to complement the MD&A and should be read in conjunction with the MD&A which can be found immediately following the report of the independent auditors.
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Profile of the City of Menifee
The City of Menifee is located approximately 80 miles southeast of Los Angeles in the southwestern portion of Riverside County. The City incorporated on October 1, 2008 as a general law city. As of 2022, the City has slightly more than 106,000 residents and covers an area of over 46 square miles. As a general law city, Menifee is governed by a five-member City Council operating under the Council/Manager form of government. Beginning with the November 2012 election, the Council consists of four Council Members elected by district who serve a four year term on a staggering basis, and a Mayor elected at large who serves a four year term. The City Council is responsible for passing City ordinances, resolutions, adopting the annual budget, appointing commissions and committees, and setting policy. The City Council appoints the City Attorney and City Manager who in turn appoints the heads of the various departments and other city staff.
The City provides a wide range of services including planning, building, public works, engineering, parks and recreation, police and general administrative activities. Services are also provided to the City and its citizens by contract and by the direct services of other government agencies and organizations. These services include animal control through Animal Friends of the Valley for animal field services and participation as a member of the Joint Powers Authority (JPA) for animal sheltering services. Fire protection are provided through contract with the County of Riverside while water and sewer services are provided by the Eastern Municipal Water District (EMWD). Library services and public health services are provided by the County of Riverside. Franchise agreements for electricity services are provided through Southern California Edison (SCE), natural gas through Sempra Utilities (So. Cal. Gas), refuse collection through a franchise agreement with Waste Management, public transit through the Riverside Transit Agency (RTA), and cable service through state franchise agreements with Mediacom, Charter and Frontier.
Although the City is distinctively residential in character, the City has the potential for a strong economic base and staff is working diligently to enhance this opportunity. Currently the major commercial bases are anchored by the Countryside Marketplace, Center Pointe, Newport Towne Square, Menifee Plaza, Cherry Hills Plaza, and other key focal points near the I-215, Newport Road and McCall Boulevard. Within the last fiscal year, the City welcomed several new businesses including Black Bear Diner, Café Mercato, and Exquisites Tapas. Expectations are high as the City looks to the future and anticipated new key retailers such as Chick-fil-A, Hampton Inn & Suites, Yoshiharu Ramen and others. The addition of the Football Stadium and Kinesiology Building at Mt. San Jacinto College with Family and Civic Courthouse to be completed in the upcoming year will also serve as additional amenities for the Menifee community. Other future development projects include amenities such as entertainment venues, restaurants and other retail, offices, and lodging.
Local Economy
Mirroring the national, state and regional economies, the City of Menifee’s economy has rebounded significantly from the initial negative impact from the Covid-19 pandemic. However, with national historic inflation, continued international supply chain issues, and rising interest rates, the impacts of these macroeconomic factors are reflected in the local economy. The unemployment rate has continued to improve from the prior years, decreasing from 7.5% in 2021 to 4.2% in 2022, as the impacts of Covid-19 on overall unemployment and the region returns to pre-pandemic employment levels. During the FY2022-23 period the City and local region experienced a steady and consistent marked increase in new construction in addition to
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increases in single family home sale prices, wh ich has led to increased assessed valuations.
Locally, the number of building permits issued has experienced an increase of 5.07% (from 5,959 to 6,261), while the number of planning applications have decreased(from 402 to 336).
Retail sales continued to experience growth, albeit at a slower pace then prior years. Bradley Burns Sales tax collections increased from $12,089,553 in fiscal year 2020-21 to $12,287,692 in fiscal year 2022-23, a 1.64% increase primarily due to continued population growth in the area.
Quality of Life (Measure DD) Sales Tax collect ions increased from $19,607.014 in fiscal year 2021-22 to $634,904 in fiscal year 2021-22, a 0.14% increase. This was the sixth full year of collection of this 1% additional sales tax that was passed by the voters in November 2016.
While both Bradley Burns Sales Tax and Quality of Life Sales Tax collection reflected overall increases from the prior year, the increases were modest, and reflect the overall national conditions signaling a potential economic slowdown in the upcoming year.
As part of the State of California’s Fiscal Year 2011-12 Budget, the Governor signed Senate Bill 89 (SB 89), which shifted millions of Vehicle License Fee (VLF) revenues to fund state law enforcement grants. This legislation particularl y impacted newly incorporated cities such as Menifee, which received a special allocation from VLF revenues. The impact due to SB 89 for the City of Menifee in Fiscal Year 2016-17 was estimated to be a loss of approximately $4.3 million, which the City addressed through budgetary measures. In the State of California budget for fiscal year 2017-18 SB 130 was introduced, signed and made into law. With SB 130 the City of Menifee’s annual VLF revenues were restored. In fiscal year 2021-22 the City received $8,381,816, in fiscal year 2022-23 the City received $9,587,382 an increase of 14.28%.
Budget Process
The City’s operating budget and five-year capital improvement plan is adopted annually by the City Council no later than the close of the prior fiscal year and serves as the foundation for planning and controlling the City’s finances. The budget process begins early in spring and encompasses budget workshops with the public and City Council in order to promote transparency and to develop goals and objectives with the community’s best interest at heart.
As the City of Menifee is still relatively new and growing, the primary goal for the City continues to be maintaining a good balance between augmenting City staff and services, and utilizing existing resources efficiently as well as minimizing costs as much as possible.
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During the year, supplemental appropriations are made to the adopted budget and approved by City Council as necessary. The City Manager is authorized to approve operating transfers between departments within a fund without limits and may reduce expenditure appropriations within a fund as a method of fiscal control. The Chief Financial Officer may decrease revenue estimates to reflect changes in the economy within the fiscal year. Annually, staff prepares and presents mid-year budget adjustments to City Council for their approval. This process incorporates updating beginning fund balances per the annual audit report and adjusting the budget as dictated by changes in the City’s goals and objectives or due to economic or legislative changes. All appropriations lapse at year-end, except those approved for carryover through encumbrances or by Council resolution.
Long-term Financial Planning
The City has adopted a fund balance policy in compliance with GASB Statement No. 54, which sets the goal of maintaining the General Fund unrestricted balance in an amount equal to thirty- five percent (35%) of general fund expenditures. 12.5% of these reserves are committed or set aside for use specifically in the case of the declaration of a state or federal emergency, or a local emergency as defined in Menifee Municipal Code 1.10.010. The City’s Finance Committee, made up of two City Councilmembers and Finance staff, has made it a priority to work with staff to develop necessary and appropriate fiscal policies to guide the City’s future operations. The Finance Committee and City staff will also be working together on the development of a long-term financial plan for the City. In fiscal year, 2023-24, the City will review its financial capacity to increase the fund balance policy threshold.
Annually, during the City’s budget process, the City’s engineering staff takes a five-year capital project budget to City Council for adoption. For FY 2022-23 in the five year capital project budget there were a total of 25 projects identified with requested funding totaling $18,329,003, from various sources. These 25 projects consist of six transportation projects, two traffic signal projects, three street improvement projects, six pavement management projects, three facility projects and four parks, trails and recreation projects. As a fast growing community, Menifee continues to prioritize funding resources and efforts into capital projects. In December 2022, the City officially broke ground on the Holland Ranch Overpass Project, a $35 million infrastructure investment to support much needed traffic mitigation efforts. Design and pre-construction efforts on the Bradley Road Bridge and the widening of Scott Road west to Bundy Canyon Road continued through FY2022-23. These projects are vital to alleviate traffic congestion and improve safety, and the City continues to aggressively seeking various methods of funding and is also looking into local, regional and state collaborations. On the recreation side, in November 2022, the City officially opened the Gale Webb, Kids R #1 Action Sports Park, a 6-acre, 22,000 foot pump track, and bicycle playground with ov er 30 obstacles, making Menifee home to the largest bike park of its kind in the region. Lastl y, in December 2022, a new state-of-the-art fire facility that will provide a significant increase in the amount of personnel and equipment that can be utilized at the station.
The City conducted a comprehensive citywide user fee study and development impact fee (DIF) study update during FY2021-22 and formally updated a new schedule on October 5, 2022, with ab effective date of January 1,2023. The user fee st udy examined all existing fees for service, and will provide an updated fee schedule reflecting the costs to provide each service. The DIF study update was conducted to review the existing impact fees to ensure that these are compatible to today’s construction costs and meet the future needs of the City. These fees will be imposed on new construction and will bring much needed financial relief to the City by expanding current and future roadways and constructing new public facilities. The
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CITY OF MENIFEE
Elected Officials
Bill Zimmerman – Mayor
Bob Karwin – Mayor Pro Tem
Dean Deines – Councilmember
Ricky Estrada – Councilmember
Lesa A. Sobek – Councilmember
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ROCHELLE
CLAYTON
ASSISTANT CITY MANAGER
ARMANDO
VILLA
CITY MANAGER
SARAH
MANWARING
CITY CLERK
LONNY
OLSON
FIRE DIVISION
CHIEF
NICK
FIDLER
PUBLIC WORKS
DIRECTOR
GINA
GONZALEZ
ECONOMIC
DEVELOPMENT DIRECTOR
JONATHAN
NICKS
DEPUTY CITY
MANAGER
RON
PUCCINELLI
CHIEF INFORMATION
OFFICER
TRAVIS
HICKEY
CHIEF FINANCIAL
OFFICER
CHRIS
KARRER
POLICE CHIEF
JEFF
MELCHING
CITY ATTORNEY
CHERYL
KITZEROW
COMMUNITY
DEVELOPMENT
DIRECTOR
CITY OF MENIFEE EXECUTIVE STAFF
CITY OF MENIFEE ACFR TEAM
Travis Hickey, Chief Financial Officer (CFO)
Margarita Cornejo, Deputy Finance Director
Ann-Marie Etienne, Finance Manager
Colin O’Connell, Accountant
Lauri Lockwood, Financial Analyst
Melissa Cortes, Senior Accountant
Dominic Tartaglia, Principal Accountant
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FINANCIAL SECTION
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735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
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ramscpa .net
PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
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Cert1f1ed Public Accountants
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Independent Auditor’s Report
To the Honorable City Council
City of Menifee, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying 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, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective fi nancial position of the governmental activities, each major fund, and the aggr egate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position for the year then ended in ac cordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statem ents section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of a Matter
As discussed in Note 1 of the fi nancial statements, the City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription Based IT Arrangements. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of the financial statem ents in accordance with accounting principles generally accepted in the Un ited States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise subst antial doubt about the City’s ability to continue as a going concern for twelve months beyond the financia l statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audi t conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement wh en it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepre sentations, or the overri de of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstat ement of the financial statements, whether due to fraud or error, and design and perform audit proce dures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumst ances, but not for the purpose of expressing an opinion on the effectiveness of the City’s intern al control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are condi tions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those char ged with governance regarding, among other matters, the planned scope and timing of the audit, significant audi t findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the Unit ed States of America requi re that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for pl acing the basic financial st atements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of manage ment about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained du ring our audit of the basic financial statements.
We do not express an opinion or provide any as surance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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Supplementary Information
Our audit was conducted for the purpose of forming opi nions on the financial statements that collectively comprise the City’s basic financial statements. The su pplementary information, as listed in the table of contents, are presented for purposes of additional anal ysis and are not a required part of the basic financial statements.
The combining schedules and budgetary comparison information is the responsibility of management and was derived from and relates directly to the underl ying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlyi ng accounting and other records used to prepare the basic financial statements or to the basic financi al statements themselves, and other additional procedures in accordance with auditing standards gener ally accepted in the United States of America. In our opinion, the supplementary information is fairly stat ed, in all material respects, in relation to the basic financial statements as a whole.
Other Information included in the Annual Report
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the financial statements and our auditor's report thereon. Our opinions on the financia l statements do not cover t he other information, and we do not express an opinion or any form of assu rance thereon. In connection with our audit of the financial statements, our responsibility is to read th e other information and consider whether a material inconsistency exists between the other information a nd the financial statements, or the other information otherwise appears to be materially misstated. If, ba sed on the work perform ed, we conclude that an uncorrected material misstatement of the other information exists, we ar e required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2023 on our consideration of the City’s internal cont rol over financial reporting and on our tests of its compliance with certain provisions of laws, re gulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
San Bernardino, California
December 21, 2023
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CITY OF MENIFEE
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Menifee, California, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activiti es of the City for the fiscal year ended June 30, 2023. We encourage readers to consider the informat ion presented here in conjunction with additional information beyond what we have furnished in ou r letter of transmittal, which can be found in the introductory section of this report, and with the City’s financial statements, which follow this discussion.
Financial Highlights
• The assets and deferred outflows of resources of the City ex ceeded its liabilities and deferred inflows or resources at June 30, 2023, by $488.8 million (net position). Of this amount, $80 million is restricted for public works, future capital projects and debt service.
• As of June 30, 2023, the City’s governmental funds reported combined ending fund balances of $169.2 million.
• At June 30, 2023, the Unassigned Fund Balanc e for the General Fund was $56.3 million, an additional $10.4 million was Committed for use in the event of an emergency as well as an additional $4.8 million for the construction of a future City Hall, $10.4 million was Assigned for economic uncertainty, and $13.1 million for vari ous assignments of fund balance. Council action in 2021 set fund balance requirements at Co mmitted of 12.5%, Assigned of 12.5% and Unassigned Fund Balance of 10% for a total required Fund Balance of 35% of budgeted expenditures. The actual ending General Fund ba lance for FY2022-23 is 76.03% of FY2022-203 adjusted budgeted expenditures. The fund balance amounts are reviewed each year as part of the budget process.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s Basic Financial Statements. The City’s Basic Finan cial Statements consist of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements.
This report also contains other su pplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resour ces with the difference between them reported as net position. Over time increases in the net position may serv e as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements present info rmation about the functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) . The governmental activities of the City include gene ral government, engineering and public works, public safety, community development and recreation services.
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The Government-wide Financial Statements can be found in the Table of Contents under the heading Basic Financial Statements.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. T he fund financial statements provide detailed information about the individual funds—not the City as a whole. Some funds are required to be established by State law. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money. The City of Menifee uses primarily governmental funds and one fiduciary fund for accounting and reporting purposes.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narro wer than that of the government-wide financial statements, it is useful to com pare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term im pact of the government’s near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains various individual governmental f unds. Information is presented separately in the Governmental Funds Balance Sheet, and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances. The General Fund, the Development Impact Fees Fund, and the Grants Fund are considered to be major funds, and are presented in individual columns in the fund statements. Data from other non-major govern mental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The Governmental Fund Financial Statements can be found in the Table of Contents under the heading Basic Financial Statements.
Fiduciary Funds
Fiduciary funds are used to account for resources he ld for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-w ide financial statement be cause the resources of those funds are not available to support the City of Menifee’s own programs. The accounting used for fiduciary funds is much like that used for prop rietary funds. The City has one fiduciary fund – the Custodial Fund, which is used to hold deposits that the City holds on behalf of outside parties. The Fiduciary Funds Financial Statements can be found in the Table of Contents under the heading Basic Financial Statements.
Notes to the Basic Financial Statements
The Notes to the Basic Financial Statements provide additional information that is essential for a full understanding of the data provided in the government- wide and fund financial statements. The Notes to the Basic Financial Statements c an be found in the Table of Contents under the heading Notes to Financial Statements.
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Government-wide Financial Analysis
The government-wide financial statements provide long- term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole.
For fiscal year ending June 30, 2023 the City of Meni fee’s total net position increased 12.92 percent from $432.9 million for fiscal year ending 2022, to $488.8 million for fiscal year ending 2023. The largest portion of the City’s net position, $317.8 million or 65.12 percent, reflects its investment in capital assets (e.g. land, buildings, improvements other than buildin gs, equipment, infrastructu re and construction in progress); less any related debt used to acquire th ose assets, which is still outstanding. The City uses these capital assets to provide services to citizens; consequently these assets are not available for future spending. Although the city’s investment in its capita l assets is reported net of related debt, it should be noted that the resources needed to repay this debt mu st be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. Of t he remaining total, $80 million is restricted to specifically stipulat ed spending agreements originated by law, contract or other agreements with external parties.
Summary of Net Position
June 30, 2023 and 2022
2022 2023
Assets:
Current and other assets 186,174,113 $ 204,286,090 $
Restricted assets 95,443 10,771,121
Capital and intangible assets 305,094,731 343,726,602 Total assets 491,364,287 558,783,813
Deferred Outflows of Resources:
OPEB related 1,135,627 1,081,734
Pension related 6,886,044 6,841,187
Deferred charges on refunding 904,389 859,170 Total deferred outflows of resources 8,926,060 8,782,091 Liabilities:
Other liabilities 34,519,141 45,934,862
Long-term liabilities 32,564,521 31,975,979
Total liabilities 67,083,662 77,910,841
Deferred Inflows of Resources:
OPEB related 11,878 728,083
Pension related 329,874 156,006
Total deferred inflows of resources 341,752 884,089 Net Position:
Net investment in capital assets 276,956,837 317,756,598 Restricted 73,165,620 80,052,911
Unrestricted 82,742,476 90,961,465
Total net position 432,864,933$ 488,770,974 $
Activities
Governmental
As shown above, the City ’s assets and deferred outflows of reso urces exceeded liabilities and deferred inflows of resources by $488.8 m illion at June 30, 2023. Deferred outflows is defined as “a consumption of net assets by the government that is applicable to a future reporting period” and deferred inflows is defined as “an acquisition of net assets by the government that is applicable to a future reporting period”.
For further information on the defer red outflows and inflows, see Notes 7 and 8 in the Basic Financial Statements section of this report.
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Overall, Citywide governmental fund revenues for t he fiscal year ending June 30, 2023, totaled $175.9 million. This figure compares with the prior year total of $122.8 million, a (6.4%) decrease.
Total program revenues of $107.2 million were 60.92 percent of total revenues Total general revenues of $68.7 million were 39.08 percent of total revenues.
Total related current year expenses accumulated to $120.0 million, compared with prior year expenses of $56.0 million. Public Safety expenses accounted for 36.66% of total current expenses. Engineering and Public Works expenses, which accounts for 18.87% of the total expenses, were used primarily for street maintenance costs and design costs. The next largest category, General Government, includes expenses related to the management and administration of the City, such as finances, management, and legal expense services, accounted for 27.90% of total expenses.
Summary of Changes in Net Position
For the Years Ended June 30, 2023 and 2022
2022 2023
Revenues
Program revenues:
Charges for services 35,013,739 $ 46,428,763 $
Operating grants and contributions 10,832,899 12,278,329 Capital grants and contributions 17,727,525 48,472,712 General revenues:
Property taxes 26,024,300 30,117,514
Sales taxes 31,684,459 31,922,596
Other taxes 6,108,371 5,721,774
Motor vehicle in-lieu (unrestricted) 115,162 109,295 Use of money & property (4,886,350) 550,807
Other revenues 185,488 319,330
Loss on disposal of asset (30,628) -
Total revenues 122,774,965 175,921,120
Expenses
General government 12,323,993 33,033,004
Public safety 31,656,830 43,999,757
Community development 6,437,034 9,365,371
Recreation services 1,083,554 9,507,152
Engineering and public works 3,257,056 22,646,459 Interest expense 1,240,597 1,463,336
Total expenses 55,999,064 120,015,079
Change in Net Position 66,775,901 55,906,041
Net position, beginning of year, restated 366,089,032 432,864,933 Net position, end of year 432,864,933$ 488,770,974 $
Activities
Governmental
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Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements.
Governmental Funds
The focus of the City’s governmental funds is to pr ovide information on near-term inflows, outflows, and balances of spendable resources. Such information may be useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
Below, the Statement of Revenues, Expenditure s, and Change in Fund Balances shows the governmental activities fund balances for the two fiscal years ending June 30, 2023 and 2022.
Governmental funds are divided into two categories consisting of major and non-major funds. During the year ending June 30, 2023, three funds were classified as major governmental funds, consisting of the General Fund, the Development Impact Fees Fund, and the Grants Fund. All other funds were classified as non-major funds. A major fund is any individual f und that meets the criteria of the following combined two tests: 1) a fund is classified as a major fund if the corresponding total revenues, expenses or (expenditures), assets or liability for that fund are at least 10 percent of the total of the aggregate for all funds and; 2) at least 5 percent of the total aggregate for all funds combined. The General Fund is always classified as a major fund while all other funds must meet the qualifications to be a major fund.
Summary of Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Years Ended June 30, 2023 and 2022
Other Total
Development Bonded CFDs Governmental Governmental
General Impact Fees Fund Funds Funds
Total revenues: 80,606,886 $ 8,494,707 $ 14,115,208 $ 20,178,603 $ 123,395,404 $ Total expenditures: 70,825,635 6,114,482 2,411,897 18,478,986 97,831,000 Revenues over (under)
expenditures 9,781,251 2,380,225 11,703,311 1,699,617 25,564,404 Total other financing
sources (uses) 10,811,095 - - 2,484,428 13,295,523 Net change in fund balances 20,592,346 2,380,225 11,703,311 4,184,045 38,859,927 Fund balances, beginning 56,313,361 36,188,645 - 18,299,913 110,801,919 Fund balances, ending 76,905,707$ 38,568,870 $ 11,703,311 $ 22,483,958 $ 149,661,846 $ Fiscal Year 2021-2022
Other Total
Development Grants Governmental Governmental
General Impact Fees Fund Funds Funds
Total revenues: 93,506,486 $ 13,938,294 $ 6,593,924 $ 28,950,757 $ 142,989,461 $ Total expenditures: 84,078,507 11,253,400 3,234,510 26,229,587 124,796,004 Revenues over (under)
expenditures 9,427,979 2,684,894 3,359,414 2,721,170 18,193,457 Total other financing
sources (uses) 3,857,079 - (2,674,894) 127,560 1,309,745 Net change in fund balances 13,285,058 2,684,894 684,520 2,848,730 19,503,202 Fund balances, beginning 76,905,707 38,568,870 890,650 33,296,619 149,661,846 Fund balances, ending 90,190,765$ 41,253,764 $ 1,575,170 $ 36,145,349 $ 169,165,048 $ Fiscal Year 2022-2023
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As of fiscal year ending 2023, the City’s total governmental funds reported a combined ending fund balance of $169.2 million, an increase of $19,503,202 from the prior fiscal year. The General Fund, which is the chief operating fund of the City, had a f und balance of $90,190,765 million as of June 30, 2023.
This is an increase of $13,285,058 over the prior year. This increase is also due primarily as a result of an increase in Quality of Life (Meas ure DD) sales tax and increased property tax revenues compared to the prior year.
As mentioned earlier, the City’s total governmental funds ending fund balances, is $169.2 million of which $56.3 million represents unassigned fund balance, which is available for spending at the government’s discretion. The remainder of fund balance, $113.9 million, is either non-spendable, restricted (to indicate that it be spent only for the specific purposes stipulated by constituti on, enabling legislation or external providers); committed (can be used only for specific purposes determined by formal action of a government’s legislative body); or assigned (intended to be used for spec ific purposes but does not meet the higher criteria of restricted or committed).
As of June 30, 2023, unassigned fund balance of the General Fund is $56.3 million, with an additional $10.4 million committed by Council action for emergencies and $4.7 million for a future City Hall; $10.4 million is assigned for economic uncertainty, $391,7 35 for fire safety, $565,041 for general plan update, $450,000 for the Central Park Amphitheater, $1 million for a future community center, $223k for the Bradley Bridge Project, $5.5 million from the Nova Community Benefit Agreement (CBA) payment, and $187,501 for eligible technology updates (Technology surcharge).
Overall, General Fund revenues for the fiscal year ending June 30, 2023 totaled $93.5 million, compared to $80.6 million for the previous year. General Fund revenues can be broken down into six major categories shown below. By far, sales tax is the City’s single largest source of revenue. Sales tax revenues have increased 0.75% over prior year. Propert y tax revenue is the City’s second largest source of revenue. Property taxes have increased 16.37% from prior year. Both property and sales tax revenues combined represent 56.10% of the City’s total General Fund revenues and have increased as a result of the City’s Quality of Life (Measure DD) 1% sales tax increase and growth in local property values.
Development related fees (building, planning, fire and engineering permits and fees) decreased by
15.46% from the prior year as FY2022- 23 reflected an overall decrease in development activity from the prior due to increased interest rates and constructi on costs. FY2021-22 development activity reflected a strong residential market, with re mote working flexibility encouraging many prospective homeowners to purchase a home within the region.
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FY2022-23 General Fund revenues (within the Other category in the graph above) includes a one-time revenue of approximately $5.5 million from the Nova Park Community Benefit Agreement (CBA). These funds have been transferred to an Assigned Fund Balance account, for future determination of use.
General Fund expenditures totaled $84.1 million for the fiscal year ending June 30, 2023, compared to $70.8 million for the previous year. This increase of $13 million was due to overall personnel cost increases of $9 million, and well as increases in fire contract services of $3.5 million compared to FY2021-22. At the end of FY2021-22 the City had an approved workforce of 302.65 FTEs, compared to an ending workforce of 320.40 FTEs for FY2022-23, with the addition of 17.75 FTEs. The expanded workforce costs are reflected in the FY2022-23 actual s. Of note with respect to personnel costs, one significant increase in FY2022-23 compared to t he prior year, was the unfunded pension liability, representing an increase of $1.1 million compared to FY2021-22. The increase reflects a larger workforce as well as lower than expected PERS investment returns. Fire Contract services increased from $12.09 million in FY2021-22 to $15.6 million in FY2022-23 due to a combination of an additional medic unit added into operations during the year, as well as c ontract increases passed on from the County of Riverside reflecting labor negotiations.
General Fund Budgetary Highlights
Revenues:
In closing out FY2022-23, four of t he City’s top five revenues had final year actuals higher than adjusted budget amounts. In total Property Tax, Developm ent revenue (planning, engineering and building permit activity), VLF, and Franchise Fee revenue totaled $3.7 million higher than the adjusted budget. Sales Tax revenue actuals, including the fourth year of collecti ons of the City’s Quality of Life (Measure DD) 1% sales tax, were approximately $764k less than the adjusted budget, with a lower performance in the last quarter of the fiscal year, signaling slowing retail activity, reflecting overall national retail trends and economic conditions. Development revenue was $2.3 m illion higher than the adjusted budget, with more activity in the final months of the fiscal year.
In total General Fund revenues, net of transfer s and SBITA/Lease Acquisition, were $9.5 million higher than the adjusted budget primarily due to the combined impact of: one-time revenue receipt of $5.5 million from the Nova Community Benefit Agreement (CBA), increased property taxes, VLF, and Franchise fee revenue offset by CEQA revenue being $3.8 million less than the adjusted budget. CEQA revenues and expenditures represent revenues and expenses associated with required private development environmental studies and analysis. Asso ciated CEQA expenses are fully paid by the respective development project as the expenses are realized. During FY2022-23, the City had extensive CEQA work underway, continuing into the new fiscal year, represented by approximately $6.3 million in adjusted budget revenues and expenditures. Actual revenues for FY2022-23, CEQA revenue was $2.5 million.
Expenditures:
Total General Fund expenditures were approximately $52.3 million less than the budgeted amounts mostly due to one time savings (unfilled authorized positions and operating and maintenance savings) and also due to deferred expenditures (CEQA activity an d multi-year capital proj ects) underway that will be completed in future years.
Personnel expenditures totaled $773k less than the adjusted budget, which was attributable to unfilled authorized positions. The largest operational savings of FY2022-23 were represented by savings in the Fire contract of $2.1 million, and overall savings of approximately $2 million in various professional services agreements.
The majority of the $52.3 million less, approximatel y $22 million is represented by multi-year capital projects that will be completed in future years, with expenses to be rea lized as project activity commences. Similarly, a pproximately $3.8 million is represented by CEQA environmental activity to continue into future fiscal years.
Anticipating spending for capital items that were budget ed but incomplete at year end will be rolled into the subsequent year’s budget, along with any operat ing budget carryovers. Budget carryovers, with the exception of encumbrances, will require council approval for addition to the next budget.
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Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for its govern mental activities as of June 30, 2023, totals $343.7 million, net of accumulated depreciat ion. This investment in capital assets includes land, buildings, system improvements, machinery and equipment, park facilities, roads, highways, and bridges.
Summary of Changes in Capital Assets
June 30, 2023
Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
Governmental activities:
Capital assets, not being depreciated:
Land 25,039,107 $ 3,755,500 $ - $ 28,794,607$ Right-of-way 415,800 - - 415,800 Construction in progress 34,015,976 21,517,206 (5,205,815) 50,327,367 Total capital assets, not being
depreciated 59,470,883 25,272,706 (5,205,815) 79,537,774 Capital assets,being depreciated:
Building and improvements 31,674,193 138,790 - 31,812,983 Equipment and furniture 3,859,366 978,593 - 4,837,959 Vehicles 7,183,999 1,227,024 - 8,411,023 Software and website design 772,239 - - 772,239 Infrastructure 310,731,608 33,010,539 - 343,742,147 Righ-to-use 6,939,942 1,339,051 - 8,278,993 Total capital assets, being
depreciated 361,161,347 36,693,997 - 397,855,344 Less accumulated depreciation (115,537,499) (18,129,017) - (133,666,516) Total capital assets, being
depreciated, net 245,623,848 18,564,980 - 264,188,828 Governmental Activities
Capital Assets, net 305,094,731$ 43,837,686 $ (5,205,815) $ 343,726,602 $
Total capital assets increased 12.66% from prior year. During the current fiscal year, the City accepted $33.01 million in infrastructure improvements from development projects and had an additional $21.5 million in construction in progress.
During FY2022-23 the City also acqui red 18 new city vehicl es totaling $1.2 million for Police, Fire, and Public Works departments.
Additional information on the City’s capital assets can be found within Note 4 – Capital Assets and Note 5 – Long-term Liabilities in the notes to the basic financial statements section of this report.
Long-term Liabilities
At the end of the current fiscal year, the City had total unsecured debt outstanding of $29.01 million.
During Fiscal Year 2011-12, the City issued $20 m illion in Certificates of Participation through the California Communities Total Road Improvement Program (TRIP). The proceeds from this financing were used to fund various capital road improvements and are being repaid from a combination of future Gas Tax and Measure “A” revenues. This original TRIP d ebt was refinanced in 2020, resulting in anticipated savings exceeding $4 million for the bal ance of the debt. The current out standing balance for this project is $15,640,000.
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In June of 2019 the City entered into a financing agr eement with Banc of America through the support and regional efforts of the Western Riverside Council of Governments (WRCOG) with Southern California Edison (SCE) to work with the City in the purchas e and retrofit of approximat ely 6,300 streetlights from SCE, known as the Streetlight Retrofit Project. The initial debt for the Streetlight Retrofit Project was $6,550,000 and with a financing period of fifteen years. In the fall of 2021, taking advantage of the lower interest rate market, the City refinanced the Streetli ght Retrofit Project, resulting in anticipated savings of over $400k for the balance of the debt. The current outstanding balance for this project is $5,485,266.
Other debts include the City’s liabilities arising from employee’s accrued leave, or compensated absences of $2,178,377, and lease liabilities of $5,703,908, represented by va rious vehicle, real property, equipment leases, and subscription liabilities further detailed within Note 5- Long-Term Liabilities.
Summary of Changes in Long-Term Liabilities
June 30, 2023
Balance Balance Long- Due Within
July 1, 2022 Increases Decreases June 30, 2023 Term One Year Transportation Revenues 16,315,000$ - $ (675,000)$ 15,640,000 $ 14,960,000 $ 680,000 $ COP, 2020
5,900,754 - (415,488) 5,485,266 5,057,262 428,004 Lease liabilities 5,922,140 424,647 (1,171,382) 5,175,405 3,958,450 1,216,955 Subscription liabilites - 885,098 (356,595) 528,503 293,210 235,293 Compensated absences 1,730,179 1,414,808 (966,610) 2,178,377 1,742,702 435,675 Long-term liabilities total 29,868,073$ 2,724,553 $ (3,585,075) $ 29,007,551 $ 26,011,624 $ 2,995,927 $ Distribution Facilities Financing
Agreement
Additional information on the City’s long-term liabilities can be found within Note 1 – Summary of Significant Accounting Policies, Note 5 – Long-Term Liabilities, Note 7 – Pension Plan, and Note 8 – Post Employment Benefits in the notes to the basic financial statements section of this report
Requests for Information
This financial report is designed to provide a general ov erview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Travis Hickey, Chief Financial Officer, City of Menifee, 29844 H aun Road, Menifee, CA 92586 or by telephone to (951) 672-6777. The entire ACFR is also available on the City’s website: www.cityofmenifee.us.
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Basic Financial Statements
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CITY OF MENIFEE
STATEMENT OF NET POSITION
JUNE 30, 2023
The accompanying notes are an integral part of these financial statements. -13-
Governmental
Activities
Assets:
Cash and investments 191,982,345$
Receivables:
Accounts 11,572,451
Accrued interest 488,518
Prepaid items 237,451
Restricted assets:
Cash with fiscal agent 10,771,121
Other current assets 5,325
Capital assets, not being depreciated 79,537,774
Capital assets, depreciated, net 264,188,828
Total Assets 558,783,813
Deferred Outflows of Resources:
OPEB related 1,081,734
Pension related 6,841,187
Deferred charge on refunding 859,170
Total Deferred Outflows of Resources 8,782,091
Liabilities:
Accounts payable 17,282,156
Accrued liabilities 2,277,984
Accrued interest 46,488
Deposits payable 21,618,381
Unearned revenue 4,709,853
Long-term liabilities, due within one year 2,995,927
Due beyond one year:
Total OPEB liability 2,827,385
Net Pension liability 141,043
Long-term liabilities, due beyond one year 26,011,624
Total Liabilities 77,910,841
Deferred Inflows of Resources:
OPEB related 728,083
Pension related 156,006
Total Deferred Inflows of Resources 884,089
Net Position:
Net investment in capital assets 317,756,598
Restricted for:
Community development projects 14,895,725
Public works 64,574,642
Debt service 582,544
Unrestricted 90,961,465
Total Net Position 488,770,974$
CITY OF MENIFEE
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of these financial statements. -14-
Net
(Expenses)
Revenues and
Changes in
Net Position
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Governmental activities:
General government 33,033,004 $ 19,097,306 $ 4,795,685 $ - $ (9,140,013)$ Public safety 43,999,757 2,898,360 316,817 - (40,784,580) Community development 9,365,371 11,036,796 884,322 - 2,555,747 Recreation services 9,507,152 778,564 - 235,075 (8,493,513) Engineering and public works 22,646,459 12,617,737 6,281,505 48,237,637 44,490,420 Interest on long-term debt 1,463,336 - - - (1,463,336) Total governmental activities 120,015,079$ 46,428,763 $ 12,278,329 $ 48,472,712 $ (12,835,275) General Revenues:
Taxes:
Property tax, levied for general purpose 30,117,514
Sales tax - Shared State revenue 31,922,596
Transient occupancy tax 430,098
Franchise taxes 4,433,059
Other taxes 858,617
Unrestricted:
Vehicle license fees 109,295
Use of money and property 550,807
Other 319,330
Total General Revenues 68,741,316
Change in net position 55,906,041
Net Position
Beginning of year 432,864,933
End of year 488,770,974$
Program Revenues
CITY OF MENIFEE
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2023
The accompanying notes are an integral part of these financial statements. -15-
General
Development
Impact Fees Grants
Total Non-Major
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investments 114,517,307 $ 43,395,043 $ 6,223,383 $ 27,846,612 $ 191,982,345 $ Receivables:
Accounts, grants and taxes 8,964,287 - 448,516 2,159,648 11,572,451 Accrued interest 327,715 91,158 - 69,645 488,518 Prepaid items - - 79,670 157,781 237,451 Other current assets 5,325 - - - 5,325 Due from other funds 1,583,995 - - - 1,583,995 Restricted assets:
Cash and investments with fiscal agents - - - 10,771,121 10,771,121 Total Assets 125,398,629 $ 43,486,201 $ 6,751,569 $ 41,004,807 $ 216,641,206 $ Liabilities and Fund Balances
Liabilities:
Accounts payable 11,312,711 $ 2,232,437 $ 316,146 $ 3,420,862 $ 17,282,156 $ Accrued liabilities 2,276,772 - - 1,212 2,277,984 Deposits payable 21,618,381 - - - 21,618,381 Unearned revenue - - 4,713,642 - 4,713,642 Due to other funds - - 146,611 1,437,384 1,583,995 Total Liabilities 35,207,864 2,232,437 5,176,399 4,859,458 47,476,158 Fund Balances:
Nonspendable:
Prepaid items - - 79,670 157,781 237,451 Restricted for:
Community development projects - - - 14,895,725 14,895,725 Engineering and public works - 41,253,764 1,495,500 21,825,378 64,574,642 Debt service - - - 424,763 424,763 Committed to:
Emergency contingency 10,405,133 - - - 10,405,133 City hall 4,750,000 - - - 4,750,000 Assigned to:
Economic uncertainty 10,405,133 - - - 10,405,133 Fire safety 391,735 - - - 391,735 Nova CBA 5,540,317 - - - 5,540,317 General plan update 565,041 - - - 565,041 Technology 187,502 - - - 187,502 Capital projects 1,450,000 - - - 1,450,000 Bradley Bridge 223,872 - - - 223,872 Unassigned 56,272,032 - - (1,158,298) 55,113,734 Total Fund Balances 90,190,765 41,253,764 1,575,170 36,145,349 169,165,048 Total Liabilities and Fund Balances 125,398,629$ 43,486,201 $ 6,751,569 $ 41,004,807 $ 216,641,206 $ Special Revenue Funds
CITY OF MENIFEE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2023
The accompanying notes are an integral part of these financial statements. -16-
169,165,048$
343,726,602
Certificates of Participation (15,640,000) $
Debt Agreement 2019 (5,485,266)
Net pension liability (141,043)
Total OPEB liability (2,827,385)
Subscriptions (528,503)
Lease liabilities (5,175,405)
Compensated absences (2,178,377) (31,975,979)
(46,488)
6,841,187
1,081,734
859,170
(156,006)
(728,083)
3,789
488,770,974$
Revenues reported as unavailable and unearned in the governmental funds are recognized in the statement of activities.
Pension related deferred outflows of resources
OPEB related deferred inflows of resources
Fund balances of governmental funds
Net position of governmental activities
Long-term liabilities and compen sated absences that have not been i ncluded in the governmental fund activity:
Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds.
Deferred inflows and outflows of resources not due and payable, or owed and receivable, respectively, in the current period, are not reported in the funds:
OPEB related deferred outflows of resources
Pension related deferred inflows of resources
Deferred charge on refunding
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets net of depreciation have not been included as financial resources in governmental fund activity.
CITY OF MENIFEE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of these financial statements. -17-
General
Development
Impact Fees Grants
Total Non-
Major
Governmental
Funds
Total
Governmental
Funds
Revenues:
Taxes 58,632,583$ - $ - $ 2,001 $ 58,634,584$ Licenses and permits 10,929,850 - - - 10,929,850 Intergovernmental 10,393,144 - 6,547,422 9,656,562 26,597,128 Charges for services 12,621,145 - - 7,705,891 20,327,036 Use of money and property 477,648 110,283 46,502 598,406 1,232,839 Fines and forfeitures 306,549 - - - 306,549 Developer participation - 13,828,011 - 49,810 13,877,821 Miscellaneous 145,567 - - 132,761 278,328 Contributions from property owners - - - 10,805,326 10,805,326 Total Revenues 93,506,486 13,938,294 6,593,924 28,950,757 142,989,461 Expenditures:
Current:
General government 18,855,430 50,000 643,670 11,558,578 31,107,678 Public safety 41,889,866 185,878 57,597 148,301 42,281,642 Community development 8,678,835 - 61,549 - 8,740,384 Parks and recreation 4,273,589 - 113,466 2,922,577 7,309,632 Engineering and public works 4,285,678 - 9,334 2,251,631 6,546,643 Capital outlay 5,750,073 11,017,522 2,348,894 6,840,555 25,957,044 Debt service:
Principal retirement 342,353 - - 1,090,488 1,432,841 Interest and fiscal charges 2,683 - - 1,417,457 1,420,140 Total Expenditures 84,078,507 11,253,400 3,234,510 26,229,587 124,796,004 Excess of revenues over(under)
expenditures 9,427,979 2,684,894 3,359,414 2,721,170 18,193,457 Other Financing Sources (Uses):
Transfers in 2,547,334 - - 2,526,996 5,074,330 Transfers out - - (2,674,894) (2,399,436) (5,074,330) Subscription/lease acquisition 1,309,745 - - - 1,309,745 Total Other Financing Sources
(Uses) 3,857,079 - (2,674,894) 127,560 1,309,745 Net Change in Fund Balances 13,285,058 2,684,894 684,520 2,848,730 19,503,202 Fund Balances
Beginning of year 76,905,707 38,568,870 890,650 33,296,619 149,661,846 End of year 90,190,765$ 41,253,764 $ 1,575,170 $ 36,145,349 $ 169,165,048 $ Special Revenue Funds
CITY OF MENIFEE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of these financial statements. -18-
Net change in fund balances - total governmental funds 19,503,202$ Amounts reported for governmental activities in the statement of activities are different because:
Capital outlay 23,591,066
Additional costs capitalized 238,163
Contributed capital assets 32,931,659
Depreciation/amortization expense (18,129,017)
(1,309,745)
2,618,465$
(45,219) 2,573,246
2,023
(448,198)
(2,145,323)
(901,035)
Change in net position of governmental activities 55,906,041$ Governmental funds report capital outlays as expenditure s. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation and amortization expense or allocated to the appropriate functional expense. The capital and intangible asset activity is reconciled as follows:
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.
Accrued interest for long-term liabilities. This is the change in accrued interest for the current period.
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. This is the change in compensated absences for the current period.
Cost of assets capitalized:
Amortization of deferred charges
Principal repayments
OPEB related net adjustment
Deferred inflows and outflows of resources not due and payable, or owed and receivable, respectively, in the current period, are not reported in the funds:
Pension related net adjustment
Governmental funds report proceeds from issuance o f debt and lease/SBITA acquisitions as other financing sources or uses, and do not report the respective long term liabilities. For the Statement of Activities these amounts been reclassified to long term debt in the Statement of Net Position. This is the amount for the current year:
CITY OF MENIFEE
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2023
The accompanying notes are an integral part of these financial statements. -19-
2019 Bonded
CFD Custodial
Fund
Assets:
Cash and investments 1,016,596$
Cash and investments with fiscal agents 2,107,480
Receivables:
Accounts 13,288
Total Assets 3,137,364
Liabilities:
Accounts payable 5,250
Total Liabilities 5,250
Net Position:
Held in trust for other purposes 3,132,114
Total Net Position 3,132,114$
CITY OF MENIFEE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of these financial statements. -20-
2019 Bonded CFD
Custodial Fund
Additions:
Interest income 48,833$
Contributions from property owners 2,383,323
Total Additions 2,432,156
Deductions:
Administrative expenses 181,941
Interest paid to bondholders 736,121
Total Deductions 918,062
Change in Net Position 1,514,094
Net position
Beginning of year 1,618,020
End of year 3,132,114$
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-21-
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of Significant Accounting Policies
a. Description of the Reporting Entity
The City of Menifee, California (the City ), was incorporated on October 1, 2008, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City is governed by an elected five-member board. As required by generally accepted accounting principl es, these financial statements present the City (the primary government) and its compon ent units. Component units are legally separate organizations for which the elect ed officials of the primary government are financially accountable. In addition, compone nt units can be other organizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the report ing entity's financial statements to be incomplete. Under this definition, it is determined that there are no component units for this reporting entity, and these financial statements present the financial reporting entity that consisted solely of the City as the primary government.
b. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. Fo r the most part, the effect of interfund activity has been removed from these stat ements. Interfund services provided and used are not eliminated in the process of co nsolidation. Governmental activities are normally supported by taxes and intergovernmental revenues.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by pr ogram revenues. Direct expenses are those that are clearly identifiable with a specif ic function or segment. Program revenues include: 1) charges to customers or app licants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are rest ricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide fi nancial statements.
The fiduciary funds are reported on the accrual basis of accounting. Major individual governmental funds are reported as separate columns in the fund financial statements.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are re cognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-22-
Note 1: Summary of Significan t Accounting Policies (continued)
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose the government considers revenues to be availabl e if they are collected within 60 days of the end of the current fiscal period. However, grant revenues are considered available within 6 months of the end of the curr ent fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
The City’s fiduciary fund financial statements report a custodial fund. The custodial fund is reported using the economic resources me asurement focus and the accrual basis of accounting.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fisc al period. All other revenue items are considered to be measurable and available only when cash is received by the government.
Governmental funds with assets and deferred outflows, liabilities and deferred inflows, revenues, or expenditures equal to at least 10% of their fund-type total, and at least 5% of the combined total of governmental funds and enterprise fund, as applicable, are required to be reported as a major fund. A governmental fund may also be presented as a major fund in the basic financial statements, event if it does not meet the size criteria just described, if the City’s officials believe that the fund is particularly important to the financial statement users (because of public interest, reporting consistency, or
otherwise). The General Fund is always reported as a major fund.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. All general tax receipts and fee revenue not allocated by law, Council policy, or contractual agreement to other funds are accounted for in the General Fund. General Fund expenditures include operations traditionally associated with activities, which are not required to be accounted for or paid by another fund.
The Development Impact Fees (DIF) Fund – This fund is used to account for 9 separate DIF Funds. Fees are charged to new development to pay for future infrastructure costs such as roads, fire facilities, parks and libraries.
The Grants Fund – This fund accounts for all of the various miscellaneous grants, in order to properly segregate and tra ck grant funding. Grants are budgeted upon being awarded by a third-party agency and approved by the City Council. Only grants that are approved at the time of the adoption of this budget are listed in this budget document.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-23-
Note 1: Summary of Significan t Accounting Policies (continued)
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)
Additionally, the City reports the following fund types:
The custodial fund is used to account for third party contributions received by the City for which the City’s responsibility is essentiall y custodial. The 2019 Bonded CFD fund is used to account for contributions from property owners for payment on outstanding debt that the City is not directly liable for.
d. Assets, Liabilities a nd Net Position or Equity
Cash and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. For financia l statement presentation purposes, cash and cash equivalents are shown as both restricted and unrestricted cash and investments in the governmental funds.
Investments are reported at fair value. The City’s policy is generally to hold investments until maturity or until market values equal or exceed cost. The State Treasurer’s Investment Pool operates in accordance wi th appropriate state laws and regulations.
The reported value of the pool is the same as the fair value of the pool shares.
Receivables and Payables
Activity between funds that are represen tative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other f unds." Advances between funds, as reported in the fund financial statements, are offs et by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of an allowance for uncollectable.
Capital Assets
Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($50,000 for infrastructure) and an estimated useful life in excess of two or more years. Assets are generally ca pitalized as a whole unit or system and not by the individual units that comprise t he system. For example, a phone system is capitalized as one entire system and not on the individual components such as the phones, phone server, installation costs, and wiring.
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are re corded at acquisition value at the date of acquisition.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-24-
Note 1: Summary of Significan t Accounting Policies (continued)
d. Assets, Liabilities and Net Position or Equity (continued)
Capital assets, which include property, plan t, equipment, infrastructure assets (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the governmental activities column in the gov ernment-wide financial statements. In accordance with generally ac cepted accounting principles, the City has reported all general infrastructure assets.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not c apitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant, equipment, infrastructure and intangible assets of the primary government, as well as its component uni ts, are depreciated/amortized using the straight-line method over the following estimated useful lives:
Assets Years $ Threshold
Equipment and furniture 2-10 5,000 $
Vehicles 2-10 5,000
Software 2-10 5,000
Infrastructure 20-50 50,000
Intangible Assets
Intangible Right to Use assets are related to equipment or real property that the City has obtained the right to utilize for a specifi ed period of time through the use of a lease agreement. The lift of the right to use asset is for the same period as the lease and amortized on a straight-line basis over that period.
Compensated Absences
Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Normally, an employee cannot accrue more than his regular annual entitlement. Payment for vaca tion not taken is payable at the end of the cumulative time.
Sick leave is payable when an employee is una ble to work becaus e of illness. Upon termination an employee will not be paid for any unused sick leave, with the exception for the City Manager pursuant to employment contract.
All unpaid vacation and sick leave, if applicable, is recorded as a liability in the government-wide financial statements. Comp ensated absence liabilities are expected to be liquidated by the General Fund in future periods.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of re sources. This separate financial statement element, deferred outflows of resources, repr esents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-25-
Note 1: Summary of Significan t Accounting Policies (continued)
d. Assets, Liabilities and Net Position or Equity (continued)
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of re sources. This separate financial statement element, deferred inflows of resources, repr esents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from taxes and intergovernmental revenues. These amounts are unavailable and recognized as an inflow of resources in the period that the amounts become available.
Net Position Flow Assumption
Sometimes the government will fund outla ys for a particular purpose from both restricted (e.g., restricted bond or grant procee ds) and unrestricted resources. In order to calculate the amounts to report as rest ricted – net position and unrestricted – net position in the government-wide and proprie tary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
Fund Balance
In the fund financial statements, government funds report the following fund balance classification:
Nonspendable include amounts that cannot be spen t because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grant ors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council. The formal action that is requi red to be taken to establish, modify, or rescind a fund balance commitment is a resolution.
Assigned include amounts that are constrained by the government’s intent to be used for specific purposes, but are neit her restricted nor committed. The City Manager is authorized to assign amounts to a specific purpose, which was established by the governing body in Resolution No. 2011-226 approved on June 21, 2011.
Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purpos es in the General Fund, and deficit fund balances in any other funds.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-26-
Note 1: Summary of Significan t Accounting Policies (continued)
d. Assets, Liabilities and Net Position or Equity (continued)
An Emergency Contingency commitment of fund balance has been established through Resolution 21-1076. This reserve is set at a minimum of 12.5% of General Fund operating expenditures The specified uses include the declaration of a state or federal emergency or a local emergency as defined in Section
1.10.010 of the Menifee Municipal Code. City Council may, by majority vote of the members, change the amount of this commitment and/or the specific uses through adoption of resolution.
An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestric ted (committed, assigned, or unassigned) or any combination of those classifi cations. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are consider ed to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.
The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate. However, if expenditures incurred for a specific purpose exceed the amounts that are restricted, committed, or assigned to t hose purposes, it may be necessary to report a negative unassigned fund balance in that fund.
Fund Balance Flow Assumptions
Sometimes the government will fund outla ys for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the am ounts to report as restricted, committed, assigned, and unassigned fund balance in t he governmental fund financial statements a flow assumption must be made about t he order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
Property Taxes
Property tax revenue is recognized on the modifi ed accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of Rive rside collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-27-
Note 1: Summary of Significan t Accounting Policies (continued)
d. Assets, Liabilities and Net Position or Equity (continued)
Unsecured personal property taxes become due on the first of March each year and are delinquent on August 31.
Functional Classifications
Expenditures of the governmental funds are classified by function. Functional classifications are defined as follows:
General Government includes legislative activities, City Clerk, City Attorney, City Manager as well as management or supportive services across more than one functional area.
Public Safety includes those activities which involve police protection, fire protection and animal control services.
Community Development includes those activities which involve planning, building and safety and code enforcement.
Parks and Recreation includes activities which provide recreation, cultural and educational services.
Engineering and Public Works includes all maintenance, engineering and capital improvements which relate to streets and other public facilities.
e. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
f. Pension Plans
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of em ployee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund has been used to liquidate the liability in prior years.
Generally accepted accounting principles requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.
Valuation Date (VD) June 30, 2021
Measurement Date (MD) June 30, 2022
Measurement Period (MP) July 1, 2021 to June 30, 2022
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-28-
Note 1: Summary of Significan t Accounting Policies (continued)
g. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB li ability, deferred outflow s of resources and deferred inflows of resour ces related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis.
For this purpose, benefit payments are reported at fair value. The General Fund has been used to liquidate the liability in prior years.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within ce rtain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2021
Measurement Date (MD) June 30, 2022
Measurement Period (MP) July 1, 2021 to June 30, 2022
h. Implementation of New Pronouncement
Governmental Accounting Standards Board has issued Statement No. 96, Subscription Based IT Arrangements . he primary objective of this statement is to enhance the relevance and consistency of information about governments' subscription activities.
This statement establishes a single model for subscription accounting based on the principle that subscriptions are financings of the right to use an underlying asset. Under this Statement, an organization is required to recognize a subscription liability and an intangible right-to-use subscription asset.
II. STEWARDSHIP
Note 2: Stewardship, Co mpliance and Accountability
a. Budgetary Data
General Budget Policies
The City Council approves each year's budget prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the City Council.
Supplemental appropriations, where required during the period, are approved by the City Manager. In most cases, expe nditures may not exceed appropriations at the function level. At fiscal year-end, all operating budget appropriations lapse.
Encumbrances
Encumbrances are estimations of cost s related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General, Special Re venue and similar governmental funds.
Encumbrances represent the estimated amo unt of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities.
Budget Basis of Accounting
Budgets for all governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-29-
Note 2: Stewardship, Co mpliance and Accountability
b. Deficit Fund Balances
The following funds present a fund balance deficit as of the year ended June 30, 2023:
Fund Fund Balance Deficit
TUMF Fees (1,158,298) $
Note 3: Cash and Investments
As of June 30, 2023, cash and investments were reported in the accompanying financial statements as follows:
Governmental activities
Cash and investments 191,982,345 $
Cash with fiscal agent 10,771,121
Fiduciary funds
Cash and investment 1,016,596
Cash with fiscal agent 2,107,480
Total Cash and Investments 205,877,542$
Cash and investments held by the City consist of the following:
Cash on hand 12,300 $
Deposits with financial institutions 73,306,501
Investments 132,558,741
Total Cash and Investments 205,877,542$
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-30-
Note 3: Cash and Investments (continued)
The City maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy which authorizes it to invest in various investments. Interest income earne d on pooled cash and investments is allocated quarterly to the various funds based on average daily cash balances.
Deposits with financial institutions
The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also al lows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The colla teral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Deposito ry. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting t he security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.
Investments Authorized by Debt Agreements
The above investments do not address investm ent of debt proceeds held by a bond trustee.
Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.
The remainder of this page left intentionally blank
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-31-
Note 3: Cash and Investments (continued)
Investments Authorized by the California Gove rnment Code and the Entity’s Investment Policy
The table below identifies the investment types that are authorized by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proc eeds held by bond trustee that are governed by the provisions of debt agree ments of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
*Maximum
*Maximum Investment
Investment Types *Maximum Percentage of In One
Authorized by City's Investment Policy Maturity Portfolio Issuer U.S. Treasury securities 5 years None None
Federal Agency Securities 5 years 20% None
Municipal securities 5 years 30% 5%
Negotiable certificates of deposit 5 years 30% 5%
Commercial Paper 270 days 25% 5%
Bankers acceptance 180 days 40% 5%
Local Agency Investment Fund N/A None $75 million
Federally insured time deposits (CDs) 5 years 20% None
Non-negotiable certifiactes of deposit 5 years 20% None Certificate of deposit placement service 5 years 30% None Collateralized bank deposits N/A N/A N/A
Repurchase agreements 1 year None None
Local government investment pools N/A None None
Corporate medium term notes 5 years 30% 5%
Asset/mortgage backed securites 5 years 20% 5%
Supranationals 5 years 30% 10%
Mutual funds N/A 10% None
Money market mutual funds N/A 20% 20%
* Based on state law requirements or investment policy requirements, whichever is more restrictive
Investments in State Investment Pool
The City is a voluntary participant in the Loc al Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordan ce with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares.
Fair Value
Generally Accepted Accounting Principles (GAAP), establishes fair value standards for investments in participating interest earning inve stment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including ch anges in the fair value of investments, is recognized as revenue in the operating statement.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-32-
Note 3: Cash and Investments (continued)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fu lfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy does not limit investments in Federal Agency Securities and Tr easury Obligations to ratings issued by nationally recognized statistical rating organi zations. The City’s investment policy does restrict investments in Corporate Medium-Term Notes (MTN’s) to those rated A or better by a nationally recognized statistical rating or ganization. Presented below are the City’s investments and the actual rating as of fiscal year end for each investment type:
Investment Type Amount
Minimum
legal rating
Aaa (or
similar) Not rated
State investment pool (LAIF) 61,276,484 $ N/A - $ 61,276,484$ Cash and money market funds 52,586 N/A - 52,586 U.S. Treasury obligations 21,733,564 N/A 21,733,564 - Federal agency securities 44,779,198 N/A 44,779,198 - U.S. corporate medium term notes 2,875,321 N/A 2,875,321 - CMO 891,116 N/A 891,116 -
Supranational 135,731 N/A 135,731 - Asset-backed securities 695,702 N/A 695,702 - Held by bond trustee and escrow agent:
Cash 119,039 N/A 119,039 -
132,558,741$ 71,229,671 $ 61,329,070 $
Rating at year end
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be abl e to recover deposits or will not be able to recover collateral securities that are in t he possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to reco ver the value of investment or collateral securities that are in the possession of an out side party. The City’s investment in LAIF is unrated.
The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. Calif ornia law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
As of June 30, 2023, the City held deposits with financial institutions in excess of Federal Depository Insurance Corporation (FDIC) lim its. These funds were held in collateralized accounts as required by the California Government Code as stated above.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-33-
Note 3: Cash and Investments (continued)
Concentration of Credit Risk
The City’s investment policy imposes restrictions on percentages that the City can invest in certain types of investments and with any one issuer for certain types of investments.
Generally accepted accounting principles require s a separate disclosure if any single issuer comprises more than 5% of the total investment value. At June 30, 2023, the City’s had no single issuer of more than 5%. Investment s guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this requirement.
Interest Rate Risk
Interest rate risk is the risk that changes in mark et interest rates will adversely affect the fair value of an investment. Generally, the longer t he maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.
As of June 30, 2023, the City had the following investments and remaining maturities:
1 year 1 year 3 years Fair
or less to 3 years to 5 years Value
State investment pool (LAIF) 61,276,484$ - $ - $ 61,276,484$ Cash and money market funds 52,586 - - 52,586 U.S. Treasury obligations 337,795 957,789 20,437,980 21,733,564 Federal agency securities 515,503 1,797,306 42,466,389 44,779,198 U.S. corporate medium term notes 67,943 1,312,827 1,494,551 2,875,321 CMO - 495,364 395,752 891,116 Supranational - 135,731 - 135,731 Asset-backed securities - 400,155 295,547 695,702 Held by bond trustee and escrow agent:
Cash 119,039 - - 119,039 Total investments 62,369,350 $ 5,099,172 $ 65,090,219 $ 132,558,741 $ Investments Maturities
Fair Value Measurements
Generally accepted accounting principles, establ ishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets t hat a government can access at the measurement date, Level 2 inputs that are observable for an asset or liabilit y, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability.
The valuation technique used for level 2 investments include "inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly".
Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar as sets or liabilities in markets that are not active; interest rates and yield curves observable at commonly quoted intervals; implied volatilities; credit spreads, and market-corroborated inputs.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-34-
Note 3: Cash and Investments (continued)
Fair Value Measurements (continued)
The following table presents the balances of the assets measured at fair value on a recurring basis as of June 30, 2023:
Investments by Fair Value Hierarchy Total Level 1 Level 2 Level 3 U.S. Treasury obligations 21,733,564 $ 18,643,770 $ 3,089,794 $ - $ Federal agency securities 44,779,198 - 44,779,198 - U.S. corporate medium term notes 2,875,321 - 2,875,321 - CMO 891,116 - 891,116 - Supranational 135,731 - 135,731 - Asset-backed securities 695,702 - 695,702 - Total Investments by Fair Value Hierarchy 71,110,632 18,643,770 $ 52,466,862 $ - $ Investments outside the Fair Value Hierarchy
State investment pool (LAIF) 61,276,484
Money market funds 52,586
Held by bond trustee and escrow agent:
Cash 119,039
Total Investments 132,558,741 $
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CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-35-
Note 4: Capital Assets
Capital asset activity for the year ended June 30, 2023, was as follows:
Beginning Deletions/ Ending
Balance Additions Adjustments Balance
Governmental activities:
Capital assets, not being depreciated:
Land 25,039,107 $ 3,755,500 $ - $ 28,794,607$ Right-of-way 415,800 - - 415,800 Construction in progress 34,015,976 21,517,206 (5,205,815) 50,327,367 Total capital assets, not being depreciated 59,470,883 25,272,706 (5,205,815) 79,537,774 Capital assets, being depreciated/amortized:
Building and improvements 31,674,193 138,790 - 31,812,983 Equipment and furniture 3,859,366 978,593 - 4,837,959 Vehicles 7,183,999 1,227,024 - 8,411,023 Software and website design 772,239 - - 772,239 Infrastructure 310,731,608 33,010,539 - 343,742,147 Right-to-use
Land 175,347 - - 175,347 Buildings 6,412,676 132,413 - 6,545,089 Vehicles and equipment 351,919 292,234 - 644,153 Subscriptions - 914,404 - 914,404 Total capital assets, being
depreciated/amortized 361,161,347 36,693,997 - 397,855,344 Less accumulated depreciation/amortization:
Building and improvements (6,298,839) (1,436,771) - (7,735,610) Equipment and furniture (1,925,349) (551,268) - (2,476,617) Vehicles (2,968,284) (861,556) - (3,829,840) Software and website design (509,599) (41,681) - (551,280) Infrastructure (102,559,442) (13,569,853) - (116,129,295) Right-to-use
Land (58,449) (58,449) - (116,898) Buildings (1,135,633) (1,111,291) - (2,246,924) Vehicles and equipment (81,904) (199,796) - (281,700) Subscriptions - (298,352) - (298,352) Total accumulated
depreciation/amortization (115,537,499) (18,129,017) - (133,666,516) Total capital assets, being
depreciated/amortized, net 245,623,848 18,564,980 - 264,188,828 Governmental activities capital assets, net 305,094,731$ 43,837,686 $ (5,205,815) $ 343,726,602 $ Depreciation/amortization expense was charged to the following functions in the statement of activities:
Governmental Activities:
General government 1,328,023$
Public safety 1,716,450
Recreation services 1,895,766
Engineering and public works 13,188,778
Total Depreciation/Amortization Expense - Governmental Activities 18,129,017 $
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-36-
Note 5: Long-Term Liabilities
The following is a schedule of changes in l ong-term liabilities for the fiscal year ended June 30, 2023:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Long-term liabilities
Series 2020 (TRIP) 16,315,000 $ - $ (675,000)$ 15,640,000 $ 680,000 $ Direct Borrowings:
Distribution Facilities
Financing Agreement 5,900,754 - (415,488) 5,485,266 428,004 Lease liabilities 5,922,140 424,647 (1,171,382) 5,175,405 1,216,955 Subscription liabilities - 885,098 (356,595) 528,503 235,293 Other long-term liability:
Compensated absences 1,730,179 1,414,808 (966,610) 2,178,377 435,675 Total long-term debt 29,868,073$ 2,724,553 $ (3,585,075) $ 29,007,551 $ 2,995,927 $ Certificates of Participation,
Transportation Revenue Certificates of Participation Bonds, Series 2020
The 2020 Certificates of Participation Bonds we re issued to refund the 2012B Certificate of Participation Bonds for $16,990,000. The bond s mature annually through 2042, in amounts ranging from $1,835,000 to $2,305,000. Interest rates vary from 0.435% to a maximum of
3.238% and are payable semiannually on Decemb er 1 and June 1. This transaction resulted in an economic gain of $1.8 million and a net savings in debt service costs of $4.3 million.
Assets irrevocably pledged as collateral for the bonded debt are all of the revenues and all money in the Pledged Tax Fund (the "Gas Tax Account" and the "Measure A Receipts Account”) and in the funds or accounts so sp ecified and provided for in the 2020 Installment Sale Agreement.
In the event of default the Trustee may, by not ice in writing to the City, declare the entire principal amount of the unpaid 2020 Installment Sale Payments and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-37-
Note 5: Long-Term Liabilities (continued)
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30 Principal Interest Total
2024 680,000$ 397,022 $ 1,077,022 $
2025 690,000 390,487 1,080,487
2026 700,000 383,166 1,083,166
2027 710,000 373,352 1,083,352
2028 720,000 361,979 1,081,979
2029-2033 3,815,000 1,580,909 5,395,909 2034-2038 4,335,000 1,063,147 5,398,147 2039-2043 3,990,000 328,009 4,318,009 Totals 15,640,000$ 4,878,071 $ 20,518,071 $
Certificates of Participation, Series 2020 TRIP
Distribution Facilities Financing Agreement – Direct borrowing:
On July 6, 2018, the City entered into a fi nancing agreement to purchase Certain Southern California Edison Company Street Light Facilitie s. The agreement calls for the conveyance and sale of 6,310 LS-1 electric streetlights facilit ies. The term of the agreement is 15 years, expiring on 2034. Interest rate is set at 4.30% and debt payments are payable semiannually on December 1 and June 1.
The agreement was refinanced on September 10, 2021 for $6,335,581 with an interest rate of
2.99% with payments due in December and June of every year. The refinancing did not extend the life of the agreement and will therefore continue to expire in 2034. The refinancing resulted in economic gain of approximately $400,7 38 over the term of the agreement with an annual average cash flow savings of approximately $30,826.
In the event of default, the lessor may, by not ice in writing to the City, declare the entire principal amount of the unpaid Agreement and the accrued interest thereon to be due and payable immediately, and upon any such declar ation the same shall become immediately due and payable.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-38-
Note 5: Long-Term Liabilities (continued)
Distribution Facilities Financing Agreement – Direct borrowing (continued):
The annual debt service requirements on this borrowing is as follows:
Year Ending
June 30 Principal Interest Total
2024 428,004$ 160,834 $ 588,838 $
2025 440,897 147,941 588,838
2026 454,178 134,660 588,838
2027 467,860 120,978 588,838
2028 481,953 106,885 588,838
2029-2033 2,636,484 307,704 2,944,188 2034-2038 575,890 12,946 588,836 Totals 5,485,266$ 991,948 $ 6,477,214 $
Distribution Facilities Financing Agreement
Lease Liabilities
The City has entered into a leases (as the lessee) for various vehicles and equipment. The lease terms range from 33 to 60 months. Monthly fixed payments range from $390 to $1,195 with interest rates ranging from 0.411% to 0.736%. The leases have guaranteed residual values ranging from $3,265 to $10,372.
The City has entered into a leases (as the lessee) for various buildings. The lease terms range from 33 to 86 months. Monthly fixed payments range from $1,352 to $47,760 with interest rates ranging from 0.308% to 2.287%.
Future payments on the total lease liabilities are as follows.
Year Ending
June 30 Principal Interest Total
2024 1,216,955$ 42,619 $ 1,259,574 $
2025 878,703 33,898 912,601
2026 935,819 25,369 961,188
2027 1,006,275 15,951 1,022,226
2028 976,564 6,473 983,037
2029 161,089 191 161,280
Totals 5,175,405$ 124,501 $ 5,299,906 $
Leases
See note 4 for the net book value of right-to-use assets acquired through leases.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-39-
Note 5: Long-Term Liabilities (continued)
Subscription Liabilities
The City has entered into a subscriptions fo r the use of various software packages. The terms range from 18 to 58 months. Annual fi xed payments range from $7,020 to $136,207 with interest rates ranging from 2.0237% to 2.3657%.
Future payments on the total lease liabilities are as follows.
Year Ending
June 30 Principal Interest Total
2024 235,293$ 12,020 $ 247,313 $
2025 100,090 6,930 107,020
2026 95,431 4,569 100,000
2027 97,689 2,311 100,000
Totals 528,503 $ 25,830 $ 554,333 $ Subscriptions
See note 4 for the net book value of right-to-use assets acquired through leases.
Compensated Absences
The City’s liability for vested and unpaid compensated absences (accrued vacation and sick pay) in the governmental activities ha s been accrued and amounts to $2,178,377 as of June 30, 2023. These liabilities have been described in Note 1.
Note 6: Interfund Receivable, Payable and Transfers
Due to/from other funds balances as of June 30, 2023 were as follows:
Funds Total
Due From Other Funds:
Due to General Fund
Grants Fund 146,611 $
Nonmajor Governmental Funds 1,437,384
Total 1,583,995 $
These represent borrowings from other governm ental funds to cover temporary cash deficit.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-40-
Note 6: Interfund Receivable, Payable and Transfers (continued)
Transfers in and out for the year ended June 30, 2023 were as follows:
Transfers in Transfers out Amount
General Fund Grants Fund (a) 2,174,894 $
Nonmajor Governmental Funds 372,440
Nonmajor Governmental Funds Grants Fund (b) 500,000
Nonmajor Governmental Funds (b) 2,026,996
Total transfers 5,074,330$
(a)
(b) Transfers made between the Grants Fund and Nonmajor Funds for debt service and capital projects.
Transfers made from Nonmajor Governmental Funds to the General Fund were to fund frontline Police services form the COPS Grants, fleet support from various funds and from the ARPA fund for public safety expenditures.
Note 7: Pension Plan
General Information about the Pension Plan
Plan Description
All qualified permanent and probati onary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defin ed Benefit Pension Plan (Plan or PERF C) administered by the California Public Employee s’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted acco unting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in three rate plans (two miscella neous and one safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-41-
Note 7: Pension Plan (continued)
General Information about the Pension Plan (continued)
Benefits provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who mu st be public employees and beneficiaries.
Benefits are based on years of cr edited service, equal to one year of full-time employment.
Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legisl ature and in some cases require approval by the CalPERS Board.
The Plans’ provisions and benefits in effect as of June 30, 2023 are summarized as follows:
Safety
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 67 52 - 67 50 - 57
Monthly benefits, as a % of eligible compensations 2.0% to 2.7% 1.0% to 2.5% 2.0% to 2.7% Required employee contribution rates 8.00% 7.25% 13.75% Required employer contribution rates 14.90% 7.76% 13.66% Miscellaneous
Contributions
Section 20814(c) of the California Public Empl oyees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process.
The actuarially determined rate is the estima ted amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is requi red to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal ye ar ended June 30, 2023 were $3,383,586. The actual employer payments of $2,881,799 m ade to CalPERS by the City during the measurement period ended June 30, 2022 differed from the City’s proportionate share of the employer’s contributions of $1,049,284 by $1,832,515, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-42-
Note 7: Pension Plan (continued)
Net Pension Liability (Asset)
The City’s net pension liability (asset) for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability (asset) of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard upd ate procedures. A summary of principal assumptions and methods used to determine the net pension liability (asset) is as follows.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68
Asset Valuation Method Fair value
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increase Varies by Entry Age and Service
Mortality Rate Table
(1) Derived using CalPERS' membership data for all
funds
Post Retirement Benefit Increase The lesser of contract COLA up to 2.30% until purchasing power protection allowance floor on
purchasing power applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the priod from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include 15 years of projected morrtality improvement using 90% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short- term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of t he funds’ asset classes, expected compound (geometric) returns were calculated over the sh ort-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benef its for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjus ted to account for assumed administrative expenses.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-43-
Note 7: Pension Plan (continued)
Net Pension Liability (Asset) (continued)
The expected real rates of return by asset class are as follows:
Asset Class
Assumed
Asset
Allocation Real Return 1,2
Global equity - cap-weighted 30.0% 4.54%
Global equity - non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed securites 5.0% 0.50%
Investment grade corporates 10.0% 1.56%
High yield 5.0% 2.27%
Emerging market debt 5.0% 2.48%
Private debt 5.0% 3.57%
Real assets 15.0% 3.21%
Leverage (5.00%) (0.59%)
Total 100.0%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.
Change of 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 market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the di scount rate assumed that contributions from plan members will be made at the current member contribution rates an d that contributions from employers will be made at statutorily requ ired rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments wa s applied to all periods of projected benefit payments to determine the total pension liability.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-44-
Note 7: Pension Plan (continued)
Net Pension Liability (Asset) (continued)
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specifi ed in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in invest ment volatility that corresponds to a reduction in the discount rate used for fund ing purposes of 0.20%, from 7.00% to 6.80%.
Since CalPERS was in the final stages of t he four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a di scount rate of 6.90% (net of investment expense but without a reduction for administrati ve expense) for financial reporting purposes.
This includes a reduction in the price infl ation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modi fications to retirement rates, termination rates, mortality rates and rates of salary in creases that were adopted by the board. These new assumptions will be refl ected in the GASB 68 accountin g valuation reports for the June 30, 2022, measurement date.
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, def erred outflows of resources, liabilities, deferred inflows of resources, and fiduciary ne t position are presented in CalPERS’ audited financial statements, which are publicly availabl e reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recogni zed when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
Proportionate Share of Net Pension Liability
The following table shows the Plan’s proportiona te share of the net pension liability (asset) over the measurement period.
Plan Total
Pension Liability
(a)
Plan Fiduciary Net
Position
(b)
Plan Net Pension
Liability (Asset)
(c) = (a) - (b)
Balance at: 6/30/2021 (VD) 13,970,552$ 16,103,843 $ (2,133,291) $ Balance at: 6/30/2022 (MD) 19,749,641 19,608,598 141,043 Net changes during 2021-22 5,779,089$ 3,504,755 $ 2,274,334 $ Increase (Decrease)
Valuation Date (VD), Measurement Date (MD).
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-45-
Note 7: Pension Plan (continued)
Proportionate Share of Net Pension Liability (continued)
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The Local Government’s proportionate share of the net pension liability for the Plan as of the June 30, 2020 and 2021 measurement dates was as follows:
Proportion - June 30, 2021 (0.03945%)
Proportion - June 30, 2022 (0.03944%)
Change - Increase (Decrease) 0.00001%
Sensitivity of the Proportionate Share of the Net Pension Li ability to Changes in the Discount Rate
The following presents the Local Government’s proportionate share of the net pension liability (asset) of the Plan as of the measurement date, calculated using the discount rate of 6.9%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9%) or 1 per centage-point higher (7.9%) than the current rate:
Discount Rate - 1%
(5.90%)
Current Discount
Rate (6.90%)
Discount Rate + 1%
(7.90%)
Miscellaneous Plan's
Net Pension Liability
(Asset) 2,518,294$ 123,824 $ (1,846,231) $ Safety Plan's Net
Pension Liability
(Asset) 318,870 17,219 (229,313)
Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Difference between projected
and actual earnings
5 year straight-line amortization
All other amounts Straight-line amortization over the average expected remaining services lives of all members that are
provided with benefits (active, inactive and retired) as of the beginning of the measurement period
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Note 7: Pension Plan (continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
The expected average remaining service lifetime (E ARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).
The EARSL for PERF C for the measurement period ending June 30, 2022 is 3.7 years, which was obtained by dividing the total se rvice years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future servic e is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
As of the start of the measurement peri od (July 1, 2021), the City’s net pension liability/(asset) was $(2,133,291). For the me asurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense) of $5,528,908.
As of June 30, 2023, the City has deferred outfl ows and deferred inflows of resources related to pensions as follows:
Deferred Outflows of
Resources
Deferred Inflows
of Resources
Changes of Assumptions 14,425 $ - $
Differences between expected and actual experience 3,199 1,852 Differences between Projected and Actual Investment Earnings 25,400 - Differences between Employer's Contributions
and Proportionate Share of Contributions 2,326,672 - Change in Employer's Proportion 1,087,905 154,154 Pension Contributions Made Subsequent to
Measurement Date -
Total 6,841,187 $ 156,006 $
3,383,586
The amounts above are net of outflows and infl ows recognized in the 2021-22 measurement period expense. Contributions subsequent to the measurement date of $3,383,586 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability (asset) in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Fiscal Year Ended
June 30:
Deferred
Outflows/(Inflows) of
Resources, Net
2024 1,540,478 $
2025 1,192,664
2026 552,922
2027 15,531
2028 -
Thereafter -
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Note 7: Pension Plan (continued)
Payable to the Pension Plan
As of June 30, 2023, the City reported a pay able of $658,388 for the outstanding amount of contributions to the pension plan required for the year then ended.
Note 8: Other Post-Employment Benefits
Plan Description
The City has established a single-employer Retiree Healthcare Plan (HC Plan). This coverage is available for employees who satisfy the requirements for retirement under the California Public Employees Retirement System (PERS), which is age 50 or older with at least five years of State or public agency service. The healthcare coverage provided by PERS meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement No. 75. Medical plan benefits ar e provided through PERS, as permitted by the Public Employees’ Medical and Hospital and Care Act (PEMHCA). A separate financial report is not prepared for the HC Plan.
Employees Covered
As of the June 30, 2022 measurement date, the following current and former employees were covered by the benefit terms under the HC Plan:
Active employees 196
Inactive employees or beneficiaries currently receiving benefits 4 Total 200
Contributions
The HC Plan and its contribution requirement s are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. For the fiscal year ended June 30, 2023, the City’s cash contributions were $9,626 in payments for benefits.
Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2022 and was calculated based on the following actuarial methods and assumptions from the valuation dated June 30, 2021:
Discount Rate 3.54%
Inflation 2.50%
Salary Increases 2.75
Investment Rate of Return 3.54%
Mortality Rate 2017 CalPERS Mortality for Miscellaneous and Safety Employees, respectively
Pre-Retirement Turnover
Healthcare Trend Rate 4.0% per year
Actuarial Assumptions:
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Note 8: Other Post-Employment Benefits (continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 3.54% percent.
Change of Assumptions
The discount rate changed from 2.16% to 3.54% for the measurement date June 30, 2022.
Changes in Total OPEB Liability
The changes in the total OPEB liability for the HC Plan are as follows:
Total OPEB
Liability
Balance at June 30, 2022
(Measurement Date June 30, 2021) 2,696,448 $
Changes recognized for the measurement period:
Service Cost 857,974
Interest 67,079
Changes of assumptions (754,285)
Plan experience differences -
Contributions - employer -
Net investment income -
Expected Minus Actual Benefit Payment 1,591
Benefit payments (41,422)
Net Changes 130,937
Balance at June 30, 2023
(Measurement Date June 30, 2022) 2,827,385 $
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:
1% Decrease
(2.54%)
Current Discount
Rate (3.54%)
1% Increase
(4.54%)
Total OPEB Liability 3,356,299$ 2,827,385 $ 2,437,400 $
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Note 8: Other Post-Employment Benefits (continued)
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the total OPEB liability of the Authority if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:
1% Decrease
Current Healthcare
Cost Trend Rates 1% Increase
Total OPEB Liability 2,242,423$ 2,827,385 $ 3,582,423 $
OPEB Plan Fiduciary Net Position
The City is not prefunding with an OPEB trust. Plan Fiduciary Net Position was $0 at June 30, 2023. The City does not have assets accumulated in a trust that meets the criteria of GASB 75 to pay related benefits.
Recognition of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to c hanges in total OPEB liability an d fiduciary net position are recognized in OPEB expense systematically over time.
Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in futu re OPEB expense. The City determined that it was not reasonable to rerun prior valuatio ns under GASB 75. Therefore, the transition approach was used as provided in GASB 75, Para graph 244. This means that there are no deferred inflows/outflows in the first year of im plementation of GASB 75 with the exception of employer contributions after the measurement date.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2023, t he City recognized OPEB expense of $946,108.
The City reported deferred outflows and inflow s of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB contributions subsequent to
measurement date 9,626$ - $
Changes of assumptions 713,486 727,022
Differences between expected
and actual experience 358,622 1,061
Total 1,081,734 $ 728,083 $
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Note 8: Other Post-Employment Benefits (continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (continued)
The $9,626 reported as deferred outflows of resour ces related to contributions subsequent to the June 30, 2022 measurement date will be recogn ized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in future OPEB expense as follows:
Fiscal Year Ended
June 30:
Deferred
Outflows/(Inflows) of
Resources
2024 21,055 $
2025 21,055
2026 21,055
2027 21,055
2028 21,055
Thereafter: 238,750
Note 9: Risk Management
The City of Menifee (“City”) is exposed to vari ous risks of loss relat ed to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the Member Entity obtains insurance coverage.
Beginning July 1, 2021, The City is a member of the California Intergovernmental Risk Authority (CIRA) (Authority), a joint power s authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers’ compensation, and property claims. Un der the General Liability program, the City has a $150,000 retention limit similar to a deductibl e, with the Authority being responsible for losses above that amount up to $1 million. T he Authority has additional coverage of $39 million in excess of its $1 million retention limit through affiliated risk management authorities.
The Authority also provides $600 million aggregate property coverage to its members with such coverage provided by purchased insurance.
Liabilities of the member entity are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estima ted. Liabilities include an amount for claims that have been incurred but not re ported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amount s for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recove ries, for example, from salvage or subrogation, are another component of the claims liability estimate.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Note 9: Risk Management (continued)
The Authority covers workers’ compensation claims up to its self-insurance limit of $500,000.
The Local Agency Workers Compensation Exce ss Pool provides excess coverage to statutory limits. Financial stat ements of CIRA may be obtained fr om its administrative office located at 2330 E. Bidwell Street, Suite 150, Folsom, CA 95630; www.cira-jpa.org or by calling (916) 927-7727.
Note 10: Tax Abatements
The City periodically enters into tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their its jurisdiction. The abatements may be granted to any business located within or promising to relocate to the City.
The City has agreed to abate 50% of taxes colle cted for a period of t en years with a not-to- exceed amount of $1,000,000. For the fisc al year ended June 30, 2023, the City abated certain taxes totaling $288,290 under this program. The developer has covenanted to operating the business within the City continuously over the period of the agreement.
Note 11: Commitments and Contingencies
Litigation
The City is involved as a defendant in various legal proceedings. While it is not feasible to predict or determine the outcome in these cases, it is the opinion of the City that the outcome will have no material adverse effect on the financial position of the City.
Grants
The City has received State and Federal funds for specific purposes that are subject to audit by the grantor agencies. Although such audits could generate expenditure disallowances under the terms of the grants, it is believed that any required reimbursements will not be material.
Construction Commitments
No material construction commitments existed as of June 30, 2023.
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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 76,905,707$ 76,905,707$ 76,905,707 $ - $ Resources (Inflows):
Taxes 55,305,858 58,512,129 58,632,583 120,454 Licenses and permits 11,215,253 8,950,602 10,929,850 1,979,248 Intergovernmental 9,878,855 10,026,765 10,393,144 366,379 Charges for services 5,920,197 10,329,660 12,621,145 2,291,485 Use of money and property 316,750 548,760 477,648 (71,112) Fines and forfeitures 343,000 349,519 306,549 (42,970) Miscellaneous 60,900 93,654 145,567 51,913 Transfers in 11,092,793 11,126,793 2,547,334 (8,579,459) SBITA/Lease acquisition - 6,939,942 1,309,745 (5,630,197) Amounts Available for Appropriation 171,039,313 183,783,531 174,269,272 (9,514,259) Charges for Appropriation (Outflows):
General government 18,804,722 24,441,978 18,855,430 5,586,548 Public safety 45,972,431 47,678,678 41,889,866 5,788,812 Community development 10,011,786 14,552,260 8,678,835 5,873,425 Parks and recreation 4,069,526 5,103,372 4,273,589 829,783 Engineering and public works 5,319,848 5,170,911 4,285,678 885,233 Debt service:
Principal retirement - 342,353 342,353 - Interest and fiscal charges - 2,683 2,683 - Capital outlay 3,638,958 31,245,799 5,750,073 25,495,726 Transfers out 7,800,144 7,800,144 - 7,800,144 Total Charges to Appropriations 95,617,415 136,338,178 84,078,507 52,259,671 Budgetary Fund Balance, June 30 75,421,898 $ 47,445,353 $ 90,190,765 $ 42,745,412 $ Budgeted Amounts
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEES – SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 38,568,870$ 38,568,870$ 38,568,870 $ - $ Resources (Inflows):
Use of money and property 80,268 236,923 110,283 (126,640) Developer participation 6,160,400 9,172,095 13,828,011 4,655,916 Transfers in - - - - Amounts Available for Appropriation 44,809,538 47,977,888 52,507,164 4,529,276 Charges for Appropriation (Outflows):
General government - 50,000 50,000 - Public safety 185,878 185,878 185,878 - Parks and recreation 200,000 - - - Capital outlay 9,699,321 38,174,071 11,017,522 27,156,549 Total Charges to Appropriations 10,085,199 38,409,949 11,253,400 27,156,549 Budgetary Fund Balance, June 30 34,724,339$ 9,567,939 $ 41,253,764 $ 31,685,825 $ Budgeted Amounts
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GRANT FUNDS – SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 890,650$ 890,650$ 890,650 $ - $ Resources (Inflows):
Intergovernmental 2,682,210 11,188,290 6,547,422 (4,640,868) Use of money and property 15,000 42,000 46,502 4,502 Amounts Available for Appropriation 3,587,860 12,120,940 7,484,574 (4,636,366) Charges for Appropriation (Outflows):
General government 537,438 1,952,361 643,670 1,308,691 Public safety - 284,901 57,597 227,304 Community development - 752,728 61,549 691,179 Parks and recreation - 538,876 113,466 425,410 Engineering and public works - 71,950 9,334 62,616 Capital outlay - 3,273,352 2,348,894 924,458 Transfers out 2,162,210 3,662,210 2,674,894 987,316 Total Charges to Appropriations 2,699,648 10,536,378 5,909,404 4,626,974 Budgetary Fund Balance, June 30 888,212 $ 1,584,562 $ 1,575,170 $ (9,392) $ Budgeted Amounts
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE CITY’S PROPORTIONATE SH ARE OF THE PENSION PLAN’S NET PENSION
LIABILITY AND RELATED RATIOS AS OF THE MEASUREMENT DATE LAST TEN YEARS*
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Measurement
Date
Employer's
Proportion of
the Collective
Net Pension
Liability1
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
Employer's
Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a Percentage
of the Employer's
Covered Payroll
Pension's Plans
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability
6/30/2014 0.00921% 288,345 $ 2,658,666 $ 10.85% 83.02% 6/30/2015 0.00368% 252,740 3,376,969 7.48% 89.51% 6/30/2016 0.00420% 363,319 4,222,698 8.60% 89.67% 6/30/2017 0.00556% 551,431 4,350,553 12.67% 88.92% 6/30/2018 0.00519% 499,769 5,130,794 9.74% 91.91% 6/30/2019 0.00023% 23,598 6,773,265 0.35% 99.71% 6/30/2020 0.00236% 256,708 10,202,569 2.52% 97.57% 6/30/2021 -0.03945% (2,133,291) 17,087,839 -12.48% 115.27% 6/30/2022 0.00122% 141,043 20,641,512 0.68% 99.29% both the Miscellaneous and Safety Risk pools excluding the 1959 Survivors Risk Pool. * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years 1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE PENSION PLAN’S CONTRIBUTIONS
LAST TEN YEARS*
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Fiscal Year
Actuarially
Determined
Contributions
Contributions in
Relation to the
Actuarially
Determined
Contributions
Contribution
Deficiency
(Excess)
Employer's
Covered Payroll
Contributions as
a Percentage of
Covered Payroll
6/30/2015 525,168$ (525,168) $ - $ 3,376,969$ 15.55% 6/30/2016 447,484 (447,484) - 4,222,698 10.60% 6/30/2017 461,164 (461,164) - 4,350,553 10.60% 6/30/2018 524,088 (524,088) - 5,130,794 10.21% 6/30/2019 727,566 (1,360,520) (632,954) 6,773,265 20.09% 6/30/2020 1,089,277 (1,089,277) - 10,202,569 10.68% 6/30/2021 1,631,504 (2,053,455) (421,951) 17,087,839 12.02% 6/30/2022 2,881,799 (2,881,799) - 20,641,512 13.96% 6/30/2023 3,383,586 (3,383,586) - 25,329,014 13.36% Notes to Schedule:
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.
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 market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.There were no assumption 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 the payments 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- down 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 CalPERS Experience 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% to 7.15%. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% 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 MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN YEARS*
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Measurement Period 2022 2021 2020 2019 2018
Total OPEB Liability
Service Cost 857,974 $ 606,096 $ 449,840 $ 71,218 $ 74,816 $ Interest on the Total OPEB Liability 67,079 44,239 38,328 10,868 8,305 Actual and expected experience difference - 32,710 364,149 91,138 - Changes in assumptions (754,285) 313,441 (1,232) 453,877 (13,488) Changes in benefit terms - - - Expected Minus Actual Benefit Payments 1,591 407 Benefit payments (41,422) (16,144) (12,360) (775) (256) Net change in Total OPEB Liability 130,937 980,749 838,725 626,326 69,377 Total OPEB Liability, beginning 2,696,448 1,715,699 876,974 250,648 181,271 Total OPEB Liability, ending (a) 2,827,385 2,696,448 1,715,699 876,974 250,648 Plan Fiduciary Net Position
Contribution - employer 41,422 16,144 12,360 775 246 Net investment income - - - - Benefit payments (41,422) (16,144) (12,360) (775) (246) Administrative expense - - - - - Net change in Plan Fiduciary Net Position - - - - Plan Fiduciary Net Position, beginning - - - - - Plan Fiduciary Net Position, ending (b) - - - - Net OPEB Liability, ending (a) - (b) 2,827,385$ 2,696,448 $ 1,715,699 $ 876,974 $ 250,648 $ Plan fiduciary net position as
a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% Covered employee payroll 20,641,512 $ 17,087,839 $ 10,202,569 $ 6,773,265 $ 5,130,794 $ Net OPEB liability as a percentage
of covered employee payroll 13.70% 15.78% 16.82% 12.95% 4.89% Notes to schedule:
The City does not have assets accumulated in a trust that meets the criteria of GASB 75 to pay related benefits Benefits are not based on a measure of pay, therefore covered employee payroll is used.
Changes Since the Prior Valuation:
Fiscal year 2017-18 was the first year of implementation. * 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.
The discount rate of 3.54% was used in the valuation. The interest rate used in the prior valuation was 2.16%.
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
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Notes to the Required Supplementary Information:
Budget Basis of Accounting
Budgets for all governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP), with the exception of the Veteran’s Memorial Fund which does not have an adopted budget.
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SUPPLEMENTAL SCHEDULES
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NON-MAJOR GOVERNMENTAL FUNDS DESCRIPTIONS
SPECIAL REVENUE FUNDS
Gas Tax
Used to account for revenue and expenditures of money apportioned under Street and Highways Code, Sections 2103, 2105, 2106, 2107 and 2107.5 of the State of California. These funds are earmarked for maintenance, rehabilitation or improvement of pub lic streets. Section 2107.5 funds can be used for engineering and gas tax audit costs. In addition, begi nning in FY 2010/11, the new excise tax on fuel, which took the place of Traffic Congestion Relief/Proposition 42 funds, is recorded in the Gas Tax Fund.
SB1
Used to account for revenue and expenditures of t he Road Maintenance and Rehabilitation Account to address deferred maintenance on the State Highway System and the lo cal streets and road system. A percentage of this new RMRA funding will be apporti oned by formula to eligible cities and counties pursuant to Streets and Highways Code section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
Measure A
Represents funds apportioned by the Riverside County Transportation Commission (RCTC) and received by the City as a result of the voter-approved initiati ve that increased sales tax by 1/2 percent in Riverside County to fund transportation projects. Measure "A" funds were originally approved by voters in 1988, and an extension was approved in 2002 which will fund projects through 2039.
Air Quality Management District
This fund was established to account for the City's share of vehicle registration fees collected under Assembly Bill 2766 passed during the 1990 State Legisl ative session. This fee was levied to fund programs to reduce air pollution from mobile sources such as cars, trucks and buses. Allocations to agencies are made through an apportionment basis and also through a competitive process. The South Coast Air Quality Management District distributes these funds to the City.
Landscape and Lighting Maintenance
Upon incorporation, the City acquired the responsibi lity of a portion of one LLMD which included both street lighting and traffic signals. In January 2015, the City requested from the County of Riverside to become solely responsible for all LLMDs located exclusiv ely within the City jurisdiction. This resulted in the City acquiring 24 individual LLM D zones. These LLMDs had original ly been established by Riverside County prior to the City's incorporation, and mainta ined responsibility for the maintenance of these zones until January 2015.
CFD Audie Murphy Ranch
In January 2012 the Audie Murphy Ranch Community Facility District (CFD) was formed. This CFD encompasses approximately 1,059.3 gross acres and upon full build out will contain approximately 2,129 residential dwelling units. Each July 1, commencing on July 1, 2013, the maximum special tax for developed property shall be increased based on the per centage change in the Consumer Price Index, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per fiscal year. The assessed fees will be used towa rds street lighting, land scaping, street sweeping, water quality basin improvements, parks, trails and recreation improvements.
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CFD Hidden Hills
In June 2012 the Hidden Hills Community Facility District (CFD) was formed. This CFD boundary includes approximately 157 gross acres and upon full build out will contain 511 single family homes. Services provided by the CFD include landscape maintenance, park and trails maintenance, as well as incidental costs such as capital replacement and administrat ive costs. The maximum special tax for developed property shall be increased based on the percent age change in the Consumer Price Index, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per fiscal year.
CFD 2014-1 Town Center
In August 2014 the Menifee Town Center Community Facility District (CFD) was formed. This CFD encompasses approximately 149 gross acres of mix use development consisting of retail, commercial and residential housing units Beginning July 1, 2015 and eac h year thereafter, the maximum special tax for developed property shall be increased based on the percentage change in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per fiscal year. The assessed fees will be used towards st reet lighting, landscaping, street sweeping, water quality basin improvements, parks, trails and recreation improvements.
TUMF Fees
This fund tracks revenues and expenditures associated with the regional transportation mitigation fee program. These funds are generated from impact f ees assessed by Western Riverside Council of Governments (WRCOG) on all new residential and commercial development. These funds are later divided among the three (3) zones comprising of the Northern, Central and Souther n zones. The City of Menifee is located within the Central zone along with the Cities of Perris, Moreno Valley and Riverside County. The City is eligible to receive TUMF funds on major road and bridge projects located within the City. These projects must first be approved by WRCOG and the Central zone Technical Advisory Committee (TAC). The City uses these funds to supp lement capital projects relating to road and bridge improvements and they are treated as grant funding.
CFD 2014-2 Commerce Point
In August 2014 the Commerce Point Community Facilit y District (CFD) was formed. This CFD boundary includes approximately 46 taxable acres of commercial real estate. Services provided by the CFD include landscape maintenance, street lighting, water quality improvements, graffiti removal, street sweeping, and park and trails maintenance. On July 1 of each year, and commencing July 1, 2016, the maximum special tax for developed properly shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%) per fiscal year.
Veteran’s Memorial
In August 2009, the City Council instructed staff to set up the fund to receive donations along with the Riverside County’s donation of $25,000 and the City’s match of $25,000 to construct a Veteran’s Memorial. Construction began in 2010 and the Memorial was completed in 2011. Citizens can purchase personalized bricks that are added to the Memorial.
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2015-2 Citywide CFD
In April 2015 the City-Wide Communi ty Facility District (CFD) was fo rmed under Resolution No. 15- 430.
CFD No. 2015-2 (Maintenance Services) currently consis ts of one Tax Zone consisting of one residential tract that will include 359 residential units. Services provided by the CFD include landscape maintenance, street lighting, water quality improvements, graffiti removal, public street sweeping, and park and trails maintenance. On July 1 of each year, and commencing July 1, 2016, the maximum special tax for developed property shall be the greater of the in creased based on the percentage change in the Consumer Price Index or two percent (2%) per fiscal year.
2017-1 Maintenance Services CFD
In December 2017 the Community Facilities Distri ct (CFD) 2017-1 was formed. This CFD boundary includes approximately 104 acres of vacant commer cial and residential property within the City (TR 36299-1 and PM 9504). The improvements proposed to be maintained include items such as landscaping, lighting, storm drains, water quality improvements, graffiti, streets, streetlights, traffic signals, street sweeping, and trail maintenance. On July 1 of each year, and commencing July 1, 2019, the maximum special tax for developed property shal l be the greater of the increased based on the percentage change in the Consumer Pr ice Index or two percent (2%), wh ichever is greater, per fiscal year.
Public Education and Government Access
This fund will be used to acquire equipment for and broa dcasting on a future City cable channel. Used to account for revenue and expenditures of money purs uant to section 611 of the Communications Act.
Local Franchising authorities (The City) may require cable operations to remit funds and set aside channels for public, educational, or governmental use.
County Service Areas (CSA)
Upon incorporation, the City assumed responsibility for seven (7) County Service Area Districts within the City limits. These districts were es tablished by the County of Riverside to provide a mechanism through special assessments to fund services such as str eet lighting, street sweeping, park maintenance, road maintenance, and law enforcement services to proper ty owners within each district. Each CSA fund provides a unique set of services to the residents within that individual district.
Maintenance CFD
On September 18, 2019, the City Council adopted Reso lution No. 19-830 declaring its intent to annex territory to CFD No. 2017-1 and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 1. Subsequently, the city has continued to annex additional zones into the Maintenance CFD. Services provided by the CFD in clude landscape maintenance, street lighting, water quality improvements, graffiti removal, public street sweeping, and park and trails maintenance. On July 1 of each year, and commencing July 1, 2019, the maximum special tax for developed property shall be the greater of the increased based on th e percentage change in the Consumer Price Index or two percent (2%) per fiscal year. Specific improvements and app licable maximum special tax rates are established and applied per the corresponding Rate and Method of Apportionment (RMA) of the respective annexed tax zone.
CAPITAL PROJECTS FUND
Bonded CFDs Fund
This fund is used to account for 3 separate Bonded CFD funds (capital projects). Proceeds received by the issuance of bonds under the Mello-Roos Community Facilities Act of 1982, are accounted for under the respective Bonded CFD fund and used to pay for the specific eligible public facilities/improvements financed by the CFD.
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Capital Projects Fund
This fund is used to account for the project co mpletion of street and highways capital improvements financed through various sources including, but not limited to, developer contributions and grants.
DEBT SERVICE FUND
Debt Service
Debt Service Funds are used to track revenues and expenditures related to repayment of principal and interest costs associated with borrowing money for long-term obligations. In May 2012 the City issued Certificates of Participation in the amount of $20.0 million under the Total Road Improvement Program (TRIP) financing. These proceeds were used for th e construction of the Newport Road/I-215 interchange and will be paid back over a 30 year period. In 2020, the TRIP financing was refinanced in 2020 in a favorable low interest environment, resulting in ant icipated interest savings exceeding $4 million of the balance of the debt service schedule. In June 2019 , the City entered into a financing agreement for $6,550,000 with Banc of America to purchase and retr ofit Certain Southern California Edison Company Street Light Facilities. In 2021, the City refinanced the Streetlight Retrofit Project in 2020 in a favorable low interest environment, resulting in anticipated inte rest savings exceeding $400k of the balance of the debt service schedule. Currently, the City has onl y the TRIP debt and Streetlight Retrofit Project outstanding debt accounted for in this fund.
CITY OF MENIFEE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
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Special Revenue Funds
Gas Tax SB1 Measure A
Air Quality
Management
District
Landscape and
Lighting
Maintenance
Assets
Cash and investments 1,199,523 $ 2,494,550 $ 3,888,262 $ 202,676 $ 3,559,757 $ Receivables:
Accounts, grants and taxes 369,824 416,984 550,709 35,560 24,382 Accrued interest 1,239 7,993 6,258 174 13,490
Prepaid items - - - - - Restricted assets:
Cash and investments with fiscal agents - - - - - Total Assets 1,570,586 $ 2,919,527 $ 4,445,229 $ 238,410 $ 3,597,629 $ Liabilities and Fund Balances
Liabilities:
Accounts payable 318,531 $ 986,305 $ 103,127 $ - $ 50,111 $ Accrued liabilities - - - - 85 Due to other funds - - - - 139,933 Total Liabilities 318,531 986,305 103,127 - 190,129 Fund Balances:
Nonspendable:
Pre
paid items - - - - - Restricted for:
Community development projects - - - - - Engineering and public works 1,252,055 1,933,222 4,342,102 238,410 3,407,500 Debt service - - - - - Unassigned (deficit) - - - - - Total Fund Balances 1,252,055 1,933,222 4,342,102 238,410 3,407,500 Total Liabilities and Fund Balances 1,570,586$ 2,919,527 $ 4,445,229 $ 238,410 $ 3,597,629 $
CITY OF MENIFEE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (continued)
JUNE 30, 2023
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Special Revenue Funds
CFD Audie Murphy
Ranch CFD Hidden Hills
CFD 2014-1 Town
Center TUMF Fees
CFD 2014-2
Commerce Point
3,586,194$ 706,867 $ 178,318 $ - $ 56,291 $ 23,065 1,602 - 640,312 - 10,217 3,597 281 - 21 - - - - - - - - - - 3,619,476$ 712,066 $ 178,599 $ 640,312 $ 56,312 $ 65,232$ 5,770 $ 229 $ 1,024,787$ 876 $ 202 32 - - - - - - 773,823 - 65,434 5,802 229 1,798,610 876 - - - - - 3,554,042 706,264 178,370 - 55,436 - - - - - - - - - - - - - (1,158,298) - 3,554,042 706,264 178,370 (1,158,298) 55,436 3,619,476$ 712,066 $ 178,599 $ 640,312 $ 56,312 $
CITY OF MENIFEE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (continued)
JUNE 30, 2023
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Veteran's Memorial
2015-2 Citywide
CFD
CFD 2017-1
Maintenance
Services
Public, Education
and Governmental
Access
County Service
Areas
Assets
Cash and investments 4,748 $ 3,069,782$ 573,527 $ 615,770 $ 1,791,649 $ Receivables:
Accounts, grants and taxes - 7,768 2,836 33,798 46,385 Accrued interest 13 5,853 - - 4,491 Prepaid items - - - - - Restricted assets:
Cash and investments with fiscal agents - - - - - Total Assets 4,761 $ 3,083,403$ 576,363 $ 649,568 $ 1,842,525 $ Liabilities and Fund Balances
Liabilities:
Accounts payable - $ 34,282 $ 7,718 $ 37,907 $ 68,858 $ Accrued liabilities - 646 - - 247 Due to other funds - - - - 523,628 Total Liabilities - 34,928 7,718 37,907 592,733 Fund Balances:
Nonspendable:
Prepaid items - - - - - Restricted for:
Community development projects 4,761 3,048,475 568,645 611,661 1,249,792 Engineering and public works - - - - - Debt service - - - - - Unassigned (deficit) - - - - - Total Fund Balances 4,761 3,048,475 568,645 611,661 1,249,792 Total Liabilities and Fund Balances 4,761$ 3,083,403$ 576,363 $ 649,568 $ 1,842,525 $ Special Revenue Funds
CITY OF MENIFEE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (continued)
JUNE 30, 2023
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Special Revenue
Funds Debt Service Fund
Maintenance CFD Bonded CFD Capital Projects Debt Service Total
Non-Major
Governmental
Funds
706,861$ - $ 4,908,524$ 303,313 $ 27,846,612 $ 6,423 - - - 2,159,648 - - 13,600 2,418 69,645 - - - 157,781 157,781 - 10,652,089 - 119,032 10,771,121 713,284$ 10,652,089 $ 4,922,124 $ 582,544 $ 41,004,807 $ 8,579$ - $ 708,550$ - $ 3,420,862$ - - - - 1,212 - - - - 1,437,384 8,579 - 708,550 - 4,859,458 - - - 157,781 157,781 704,705 - 4,213,574 - 14,895,725 - 10,652,089 - - 21,825,378 - - - 424,763 424,763 - - - - (1,158,298) 704,705 10,652,089 4,213,574 582,544 36,145,349 713,284$ 10,652,089 $ 4,922,124 $ 582,544 $ 41,004,807 $ Capital Projects Fund
CITY OF MENIFEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Special Revenue Funds
Gas Tax SB1 Measure A
Air Quality
Management District
Landscape and
Lighting Maintenance
Revenues
Taxes - $ - $ - $ - $ - $ Intergovernmental 2,700,915 2,379,649 3,119,910 140,753 - Charges for services - - 2,500 - 856,717 Use of money and property 5,164 43,472 15,598 452 (6,709) Developer participation - - - - - Miscellaneous - - - - - Contributions from property owners - - - - - Total Revenues 2,706,079 2,423,121 3,138,008 141,205 850,008 Expenditures
Current:
General government - - - - 36,616 Public safety - - - - - Community development - - - - - Parks and recreation - - - - 642,646 Engineering and public works 1,531,398 - - - 70,106 Capital outlay 262,425 2,833,030 319,795 39,951 - Debt service:
Principal retirement - - - - - Interest and fiscal charges - - - - - Bond issuance costs - - - - - Total Expenditures 1,793,823 2,833,030 319,795 39,951 749,368 Excess (Deficiency) of Revenues Over
(Under) Expenditures 912,256 (409,909) 2,818,213 101,254 100,640 Other Financing Sources (Uses)
Transfers in - - - - - Transfers out (336,486) - (1,076,754) - (10,124) Total Other Financing Sources (Uses) (336,486) - (1,076,754) - (10,124) Net Change in Fund Balances 575,770 (409,909) 1,741,459 101,254 90,516 Fund Balances (Deficit)
Beginning of year 676,285 2,343,131 2,600,643 137,156 3,316,984 End of year 1,252,055 $ 1,933,222 $ 4,342,102 $ 238,410 $ 3,407,500 $
CITY OF MENIFEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Special Revenue Funds
CFD Audie Murphy
Ranch CFD Hidden Hills
CFD 2014-1 Town
Center TUMF Fees
CFD 2014-2
Commerce Point
-$ - $ - $ - $ - $ - - - 1,315,335 - 2,168,511 274,894 16,370 - 9,655 37,660 5,291 (908) - 55 - - - - - - - - - - - - - - - 2,206,171 280,185 15,462 1,315,335 9,710 10,417 - - - - - - - - - - - - - - 1,050,299 122,834 1,807 - 5,632 74,385 - - - 1,771 103,261 - - 2,060,925 - - - - - - - - - - - - - - - - 1,238,362 122,834 1,807 2,060,925 7,403 967,809 157,351 13,655 (745,590) 2,307 - - - - - (32,011) - - - (409) (32,011) - - - (409) 935,798 157,351 13,655 (745,590) 1,898 2,618,244 548,913 164,715 (412,708) 53,538 3,554,042$ 706,264 $ 178,370 $ (1,158,298) $ 55,436 $
CITY OF MENIFEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Veteran's Memorial 2015-2 Citywide CFD
CFD 2017-1
Maintenance Services
Public, Education and
Governmental Access County Service Areas
Revenues
Taxes - $ - $ - $ - $ 2,001 $ Intergovernmental - - - - - Charges for services 1,500 1,423,804 227,482 161,451 1,888,222 Use of money and property 34 3,057 (2,777) 16,608 (2,350) Developer participation - - - - - Miscellaneous - - - - - Contributions from property owners - - - - - Total Revenues 1,534 1,426,861 224,705 178,059 1,887,873 Expenditures
Current:
General government - - - 89 15,594 Public safety - - - - 148,301 Community development - - - - - Parks and recreation - 411,706 59,801 - 627,852 Engineering and public works - 173,504 55,724 - 344,743 Capital outlay - 68,519 - 62,561 - Debt service:
Principal retirement - - - - - Interest and fiscal charges - - - - - Bond issuance costs - - - - - Total Expenditures - 653,729 115,525 62,650 1,136,490 Excess (Deficiency) of Revenues Over
(Under) Expenditures 1,534 773,132 109,180 115,409 751,383 Other Financing Sources (Uses)
Transfers in - 276,221 - - - Transfers out - (201,903) (2,455) - (554,721) Total Other Financing Sources (Uses) - 74,318 (2,455) - (554,721) Net Change in Fund Balances 1,534 847,450 106,725 115,409 196,662 Fund Balances (Deficit)
Beginning of year 3,227 2,201,025 461,920 496,252 1,053,130 End of year 4,761 $ 3,048,475$ 568,645 $ 611,661 $ 1,249,792 $ Special Revenue Funds
CITY OF MENIFEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Special Revenue
Funds Debt Service Fund
Maintenance CFD Bonded CFD Capital Projects Debt Service Total
Non-Major
Governmental Funds
-$ - $ - $ - $ 2,001 $ - - - - 9,656,562 674,785 - - - 7,705,891 (3,985) 464,658 9,163 13,923 598,406 - - 49,810 - 49,810 - 132,761 - - 132,761 - 10,677,250 128,076 - 10,805,326 670,800 11,274,669 187,049 13,923 28,950,757 32,471 11,383,538 - 79,853 11,558,578 - - - - 148,301 - - - - - - - - - 2,922,577 - - - - 2,251,631 - - 1,090,088 - 6,840,555 - - - 1,090,488 1,090,488 - 842,353 - 575,104 1,417,457 - - - - - 32,471 12,225,891 1,090,088 1,745,445 26,229,587 638,329 (951,222) (903,039) (1,731,522) 2,721,170 - - 500,000 1,750,775 2,526,996 (84,573) (100,000) - - (2,399,436) (84,573) (100,000) 500,000 1,750,775 127,560 553,756 (1,051,222) (403,039) 19,253 2,848,730 150,949 11,703,311 4,616,613 563,291 33,296,619 704,705$ 10,652,089 $ 4,213,574 $ 582,544 $ 36,145,349 $ Capital Projects Fund
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
GAS TAX
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-71-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 676,285$ 676,285$ 676,285 $ - $ Resources (Inflows):
Intergovernmental 2,901,037 2,741,218 2,700,915 (40,303) Use of money and property 500 3,500 5,164 1,664 Amounts Available for Appropriation 3,577,822 3,421,003 3,382,364 (38,639) Charges for Appropriation (Outflows):
Engineering and public works 2,524,639 2,503,845 1,531,398 972,447 Capital outlay 125,000 459,046 262,425 196,621 Transfers out 336,486 336,486 336,486 - Total Charges to Appropriations 2,986,125 3,299,377 2,130,309 1,169,068 Budgetary Fund Balance, June 30 591,697 $ 121,626 $ 1,252,055 $ 1,130,429 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
SB1
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-72-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 2,343,131$ 2,343,131$ 2,343,131 $ - $ Resources (Inflows):
Intergovernmental 2,272,309 2,312,000 2,379,649 67,649 Use of money and property 1,000 12,000 43,472 31,472 Amounts Available for Appropriation 4,616,440 4,667,131 4,766,252 99,121 Charges for Appropriation (Outflows):
Capital outlay 2,915,000 4,894,454 2,833,030 2,061,424 Total Charges to Appropriations 2,915,000 4,894,454 2,833,030 2,061,424 Budgetary Fund Balance, June 30 1,701,440 $ (227,323) $ 1,933,222 $ 2,160,545 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
MEASURE A
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 2,600,643$ 2,600,643$ 2,600,643 $ - $ Resources (Inflows):
Intergovernmental 2,646,000 2,646,000 3,119,910 473,910 Charges for services - - 2,500 2,500 Use of money and property 500 7,500 15,598 8,098 Amounts Available for Appropriation 5,247,143 5,254,143 5,738,651 484,508 Charges for Appropriation (Outflows):
Capital outlay 1,968,032 3,601,438 319,795 3,281,643 Transfers out 1,076,754 1,076,754 1,076,754 - Total Charges to Appropriations 3,044,786 4,678,192 1,396,549 3,281,643 Budgetary Fund Balance, June 30 2,202,357 $ 575,951 $ 4,342,102 $ 3,766,151 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY MANAGEMENT DISTRICT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-74-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 137,156$ 137,156$ 137,156 $ - $ Resources (Inflows):
Intergovernmental 116,700 116,700 140,753 24,053 Use of money and property 25 225 452 227 Amounts Available for Appropriation 253,881 254,081 278,361 24,280 Charges for Appropriation (Outflows):
Capital outlay 160,000 160,000 39,951 120,049 Total Charges to Appropriations 160,000 160,000 39,951 120,049 Budgetary Fund Balance, June 30 93,881 $ 94,081 $ 238,410 $ 144,329 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-75-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 3,316,984$ 3,316,984$ 3,316,984 $ - $ Resources (Inflows):
Charges for services 920,753 920,753 856,717 (64,036) Use of money and property 1,435 15,795 (6,709) (22,504) Amounts Available for Appropriation 4,239,172 4,253,532 4,166,992 (86,540) Charges for Appropriation (Outflows):
General government 36,886 36,886 36,616 270 Parks and recreation 658,472 735,972 642,646 93,326 Engineering and public works 195,626 196,529 70,106 126,423 Capital outlay 16,774 16,774 - 16,774 Transfer out 10,124 10,124 10,124 - Total Charges to Appropriations 917,882 996,285 759,492 236,793 Budgetary Fund Balance, June 30 3,321,290 $ 3,257,247 $ 3,407,500 $ 150,253 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – AUDIE MURPHY RANCH
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-76-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 2,618,244$ 2,618,244$ 2,618,244 $ - $ Resources (Inflows):
Charges for services 2,164,250 2,166,168 2,168,511 2,343 Use of money and property 5,000 15,000 37,660 22,660 Amounts Available for Appropriation 4,787,494 4,799,412 4,824,415 25,003 Charges for Appropriation (Outflows):
General government 10,417 10,417 10,417 - Parks and recreation 1,428,472 1,353,946 1,050,299 303,647 Engineering and public works 185,000 200,897 74,385 126,512 Capital outlay 303,692 1,020,359 103,261 917,098 Transfers out 32,011 32,011 32,011 - Total Charges to Appropriations 1,959,592 2,617,630 1,270,373 1,347,257 Budgetary Fund Balance, June 30 2,827,902 $ 2,181,782 $ 3,554,042 $ 1,372,260 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – HIDDEN HILLS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-77-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 548,913$ 548,913$ 548,913 $ - $ Resources (Inflows):
Charges for services 274,639 274,639 274,894 255 Use of money and property 250 4,750 5,291 541 Amounts Available for Appropriation 823,802 828,302 829,098 796 Charges for Appropriation (Outflows):
Parks and recreation 246,712 253,969 122,834 131,135 Engineering and public works 28,177 20,920 - 20,920 Total Charges to Appropriations 274,889 274,889 122,834 152,055 Budgetary Fund Balance, June 30 548,913 $ 553,413 $ 706,264 $ 152,851 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
CFD 2014-1 TOWN CENTER
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-78-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 164,715$ 164,715$ 164,715 $ - $ Resources (Inflows):
Charges for services 16,370 16,370 16,370 - Use of money and property 35 335 (908) (1,243) Amounts Available for Appropriation 181,120 181,420 180,177 (1,243) Charges for Appropriation (Outflows):
Parks and recreation 13,904 13,904 1,807 12,097 Engineering and public works 2,500 2,500 - 2,500 Total Charges to Appropriations 16,404 16,404 1,807 14,597 Budgetary Fund Balance, June 30 164,716 $ 165,016 $ 178,370 $ 13,354 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
TUMF FEES
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-79-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 (412,708)$ (412,708)$ (412,708) $ - $ Resources (Inflows):
Intergovernmental - 20,824,770 1,315,335 (19,509,435) Amounts Available for Appropriation (412,708) 20,412,062 902,627 (19,509,435) Charges for Appropriation (Outflows)
Capital outlay - 20,824,770 2,060,925 18,763,845 Total Charges to Appropriations - 20,824,770 2,060,925 18,763,845 Budgetary Fund Balance (Deficit), June 30 (412,708)$ (412,708) $ (1,158,298) $ (745,590) $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2014-2 COMMERCE POINT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-80-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 53,538$ 53,538$ 53,538 $ - $ Resources (Inflows):
Charges for services 9,500 9,500 9,655 155 Use of money and property 5 30 55 25 Amounts Available for Appropriation 63,043 63,068 63,248 180 Charges for Appropriation (Outflows):
Parks and recreation 6,250 6,250 5,632 618 Engineering and public works 3,500 3,500 1,771 1,729 Transfer out 409 409 409 - Total Charges to Appropriations 10,159 10,159 7,812 2,347 Budgetary Fund Balance, June 30 52,884 $ 52,909 $ 55,436 $ 2,527 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2015-2 CITYWIDE
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
-81-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 2,201,025$ 2,201,025$ 2,201,025 $ - $ Resources (Inflows):
Charges for services 1,426,003 1,426,003 1,423,804 (2,199) Use of money and property 80 7,165 3,057 (4,108) Transfers in 276,221 276,221 276,221 - Amounts Available for Appropriation 3,903,329 3,910,414 3,904,107 (6,307) Charges for Appropriation (Outflows):
Parks and recreation 766,437 712,969 411,706 301,263 Engineering and public works 430,750 443,157 173,504 269,653 Capital outlay 228,111 334,011 68,519 265,492 Transfers out 201,903 201,903 201,903 - Total Charges to Appropriations 1,627,201 1,692,040 855,632 836,408 Budgetary Fund Balance, June 30 2,276,128 $ 2,218,374 $ 3,048,475 $ 830,101 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2017-1 MAINTENANCE SERVICES FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 461,920$ 461,920$ 461,920 $ - $ Resources (Inflows):
Charges for services 228,062 228,062 227,482 (580) Use of money and property 1,200 3,700 (2,777) (6,477) Amounts Available for Appropriation 691,182 693,682 686,625 (7,057) Charges for Appropriation (Outflows):
Parks and recreation 73,994 76,994 59,801 17,193 Engineering and public works 152,813 152,813 55,724 97,089 Transfers out 2,455 2,455 2,455 - Total Charges to Appropriations 229,262 232,262 117,980 114,282 Budgetary Fund Balance, June 30 461,920 $ 461,420 $ 568,645 $ 107,225 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
PUBLIC, EDUCATION AND GOVERNMENTAL ACCESS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 496,252$ 496,252$ 496,252 $ - $ Resources (Inflows):
Charges for services 140,000 140,000 161,451 21,451 Use of money and property 3,500 3,500 16,608 13,108 Amounts Available for Appropriation 639,752 639,752 674,311 34,559 Charges for Appropriation (Outflows):
General government - 89 89 - Capital outlay 40,000 62,561 62,561 - Total Charges to Appropriations 40,000 62,650 62,650 - Budgetary Fund Balance, June 30 599,752 $ 577,102 $ 611,661 $ 34,559 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COUNTY SERVICE AREAS (CSA)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 1,053,130$ 1,053,130$ 1,053,130 $ - $ Resources (Inflows):
Taxes - - 2,001 2,001 Charges for services 1,892,397 1,892,398 1,888,222 (4,176) Use of money and property 2,610 8,035 (2,350) (10,385) Amounts Available for Appropriation 2,948,137 2,953,563 2,941,003 (12,560) Charges for Appropriation (Outflows):
General government 24,580 24,580 15,594 8,986 Public safety 161,466 161,466 148,301 13,165 Parks and recreation 767,022 845,672 627,852 217,820 Engineering and public works 462,637 462,637 344,743 117,894 Transfers out 554,721 554,721 554,721 - Total Charges to Appropriations 1,970,426 2,049,076 1,691,211 357,865 Budgetary Fund Balance, June 30 977,711 $ 904,487 $ 1,249,792 $ 345,305 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
MAINTENANCE CFD
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 150,949$ 150,949$ 150,949 $ - $ Resources (Inflows):
Charges for services 594,131 613,492 674,785 61,293 Use of money and property - - (3,985) (3,985) Amounts Available for Appropriation 745,080 764,441 821,749 57,308 Charges for Appropriation (Outflows):
General government 186,349 206,210 32,471 173,739 Parks and recreation 4,666 4,666 - 4,666 Engineering and public works 8,890 8,890 - 8,890 Capital outlay 30,504 30,004 - 30,004 Transfers out 84,573 84,573 84,573 - Total Charges to Appropriations 314,982 334,343 117,044 217,299 Budgetary Fund Balance, June 30 430,098 $ 430,098 $ 704,705 $ 274,607 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
BONDED CFD
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 11,703,311$ 11,703,311$ 11,703,311 $ - $ Resources (Inflows):
Use of money and property - 41,500 464,658 423,158 Miscellaneous - - 132,761 132,761 Contributions from property owners - 73,942 10,677,250 10,603,308 Transfers in - 25,000 - (25,000) Amounts Available for Appropriation 11,703,311 11,843,753 22,977,980 11,134,227 Charges for Appropriation (Outflows):
General government - 11,383,538 11,383,538 - Debt service:
Interest and fiscal changes - 390,428 842,353 (451,925) Bond issuance costs - 451,925 - 451,925 Transfer out - 100,000 100,000 - Total Charges to Appropriations - 12,325,891 12,325,891 - Budgetary Fund Balance, June 30 11,703,311$ (482,138) $ 10,652,089 $ 11,134,227 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 4,616,613$ 4,616,613$ 4,616,613 $ - $ Resources (Inflows):
Intergovernmental 2,000,000 2,000,000 - (2,000,000) Use of money and property 10,000 32,000 9,163 (22,837) Developer participation 346,023 574,430 49,810 (524,620) Contributions from property owners - - 128,076 128,076 Transfers in 128,076 1,628,076 500,000 (1,128,076) Amounts Available for Appropriation 7 ,100,712 8 ,851,119 5 ,303,662 (3,547,457) Charges for Appropriation (Outflows):
Capital outlay 2,474,099 6,437,143 1,090,088 5,347,055 Total Charges to Appropriations 2,474,099 6,437,143 1,090,088 5,347,055 Budgetary Fund Balance, June 30 4,626,613 $ 2,413,976 $ 4,213,574 $ 1,799,598 $ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 563,291$ 563,291$ 563,291 $ - $ Resources (Inflows):
Use of money and property 50 4,550 13,923 9,373 Transfers in 1,750,775 1,750,775 1,750,775 - Amounts Available for Appropriation 2,314,116 2,318,616 2,327,989 9,373 Charges for Appropriation (Outflows):
General government 85,233 85,233 79,853 5,380 Debt service:
Principal retirement 1,090,488 1,090,488 1,090,488 - Interest and fiscal charges 575,104 575,104 575,104 - Total Charges to Appropriations 1,750,825 1,750,825 1,745,445 5,380 Budgetary Fund Balance, June 30 563,291 $ 567,791 $ 582,544 $ 14,753 $ Budgeted Amounts
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STATISTICAL SECTION DESCRIPTIONS
This section of the City of M enifee’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what t he information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.
Financial Trends Schedules – These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. As a newly incorporated City, information relative to the exact City boundaries prior to incorporation is not readily available in most cases. Therefore, trend information will be developed over time and reported annually.
Net Position
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Major Revenues by Source – Governmental Funds
Revenue Capacity Schedules – These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property taxes.
Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates
Principal Property Tax Payers
Property Tax Levies and Collections
Debt Capacity Schedules – These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
Ratio of Outstanding Debt by Type
Ratio of General Bonded Debt Outstanding
Direct and Overlapping Bonded Debt
Legal Debt Margin
Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments.
Demographic and Economic Statistics
Principal Employers
Full-time and Part-time City Employees by Program
Operating Information – These schedules contain info rmation about the City’s operations and resources to help the reader understand how the City’s financial information related to the services the City provides and the activities it performs.
Capital Asset Statistics by Function/Program
Operating Indicators by Function/Program
Miscellaneous Statistics
Taxable Sales by Category
Top 25 Sales Tax Producers
Measure DD 1% Sales Tax – Revenues and Expenditures History
Sources: Unless otherwise noted, the information in these schedules is derived from various internal and other governmental and non-governmental sources where reliability of the data could be ascertained.
CITY OF MENIFEE
NET POSITION
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As of June 30, 2014 2015 2016 2017
GOVERNMENTAL ACTIVITIES
Net Investment in Capital Assets 16,372,388 $ 25,425,778 $ 51,416,214 $ 69,469,330 $ Restricted for:
Community Development Projects 785,619 1,182,477 4,448,198 4,660,916 Public Safety 166,413 (360,254) - - Public Works 18,577,377 23,094,019 23,908,504 20,471,018 Capital Projects 23,541,211 20,022,031 9,619,732 4,772,166 Debt service 1,338,301 1,354,467 1,359,694 1,358,034 Unrestricted 8,301,753 12,103,855 10,903,072 14,504,934 Total Governmental Activities
Net Position 69,083,062 $ 82,822,373 $ 101,655,414 $ 115,236,398 $
PRIMARY GOVERNMENT
Net Investment in Capital Assets 16,372,388 $ 25,425,778 $ 51,416,214 $ 69,469,330 $ Restricted for:
Community Development Projects 785,619 1,182,477 4,448,198 4,660,916 Public Safety 166,413 (360,254) - - Public Works 18,577,377 23,094,019 23,908,504 20,471,018 Capital Projects 23,541,211 20,022,031 9,619,732 4,772,166 Debt service 1,338,301 1,354,467 1,359,694 1,358,034 Unrestricted 8,301,753 12,103,855 10,903,072 14,504,934 Total Primary Government
Net Position 69,083,062 $ 82,822,373 $ 101,655,414 $ 115,236,398 $
Source: City Finance Department
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2018 2019 2020 2021 2022 2023
110,924,809$ 156,771,192 $ 215,774,004 $ 259,935,987 $ 276,956,837 $ 317,756,598 $ 5,363,977 6,373,715 4,569,409 5,239,814 11,312,169 14,895,725 12,472 191,737 - - - - 32,360,079 44,929,363 40,108,013 49,139,697 61,290,160 64,574,642 - - - - - - 1,371,931 7,884,527 1,572,272 556,027 563,291 582,544 26,052,076 30,064,613 36,384,684 51,217,507 82,742,476 90,961,465 176,085,344$ 246,215,147 $ 298,408,382 $ 366,089,032 $ 432,864,933 $ 488,770,974 $ 110,924,809$ 156,771,192 $ 215,774,004 $ 259,935,987 $ 276,956,837 $ 317,756,598 $ 5,363,977 6,373,715 4,569,409 5,239,814 11,312,169 14,895,725 12,472 191,737 - - - - 32,360,079 44,929,363 40,108,013 49,139,697 61,290,160 64,574,642 - - - - - - 1,371,931 7,884,527 1,572,272 556,027 563,291 582,544 26,052,076 30,064,613 36,384,684 51,217,507 82,742,476 90,961,465 176,085,344$ 246,215,147 $ 298,408,382 $ 366,089,032 $ 432,864,933 $ 488,770,974 $
CITY OF MENIFEE
CHANGES IN NET POSITION
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For the Year Ended June 30, 2014 2015 2016 2017
EXPENSES
Governmental Activities:
General Government 3,731,602 $ 4,160,012 $ 4,236,457 $ 5,158,876 $ Public Safety 17,371,349 19,413,871 20,927,524 18,129,742 Community Development 3,161,672 3,091,768 3,255,560 3,403,182 Recreation Services 555,384 1,903,871 1,145,208 1,664,348 Engineering and Public Works 8,198,856 7,292,714 10,361,131 8,281,676 Interest on Long-term Debt 885,488 918,204 902,716 891,605 Total Governmental Activities Expenses 33,904,351 36,780,440 40,828,596 37,529,429
PROGRAM REVENUES
Governmental Activities:
Charges for Services 11,776,032 12,407,481 12,764,259 19,257,460 Operating Contributions and Grants 5,536,969 3,777,617 3,041,014 3,578,315 Capital Contributions and Grants 14,267,238 9,151,362 16,930,639 3,107,374 Total Governmental Activities Program Revenues 31,580,239 25,336,460 32,735,912 25,943,149 Total Net Revenues (Expenses) (2,324,112) $ (11,443,980) $ (8,092,684) $ (11,586,280) $
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental Activities:
Taxes:
Property Tax 11,945,065 $ 14,634,225 $ 14,577,983 $ 12,369,587 $ Transient Occupancy Tax 166,958 190,972 217,122 225,956 Sales Taxes 5,386,619 5,924,347 7,137,168 8,661,218 Franchise Tax 2,967,476 3,586,271 3,084,175 2,973,633 Other Taxes 387,364 409,003 460,751 582,937 Motor Vehicle in-lieu tax, unrestricted 34,912 34,308 34,451 39,873 Use of Money and Property 154,230 151,450 253,336 221,371
Other (36,693) 84,370 94,005 92,689 Loss on Disposal of Asset - - - - Total Governmental Activities 21,005,931 25,014,946 25,858,991 25,167,264 Special item - - 1,066,734 - Restatement 111,371 168,345 - - Change in Net Position 18,681,819$ 13,570,966 $ 17,766,307 $ 13,580,984 $
Source: City Finance Department
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2018 2019 2020 2021 2022 2023
6,265,963$ 8,177,727 $ 9,907,689 $ 14,183,374 $ 12,323,993 $ 33,033,004 $ 25,497,233 27,595,237 29,559,843 27,853,563 31,656,830 43,999,757 4,925,868 5,347,196 5,253,832 5,408,287 6,437,034 9,365,371 3,034,270 4,082,858 5,432,196 3,546,483 1,083,554 9,507,152 6,082,233 16,979,928 18,331,483 16,251,977 3,257,056 22,646,459 917,342 863,713 1,108,218 569,679 1,240,597 1,463,336 46,722,909 63,046,659 69,593,261 67,813,363 55,999,064 120,015,079 27,218,239 33,823,689 24,835,036 30,631,445 35,013,739 46,428,763 4,722,133 5,141,336 5,530,426 8,057,443 10,832,899 12,278,329 33,885,278 46,785,288 38,642,004 34,739,876 17,727,525 48,472,712 65,825,650 85,750,313 69,007,466 73,428,764 63,574,163 107,179,804 19,102,741$ 22,703,654 $ (585,795) $ 5,615,401 $ 7,575,099 $ (12,835,275)$ 18,876,904$ 20,771,353 $ 22,361,021 $ 24,076,949 $ 26,024,300 $ 30,117,514 $ 232,117 238,464 189,032 506,967 529,006 430,098 18,005,117 20,384,878 21,102,457 27,476,156 31,684,459 31,922,596 3,076,719 3,141,174 6,289,806 3,653,129 4,055,791 4,433,059 615,333 623,801 801,896 1,126,860 1,523,574 858,617 47,721 44,113 73,963 73,963 115,162 109,295 613,165 2,011,031 1,805,179 48,592 (4,886,350) 550,807 166,682 211,335 155,676 665,758 185,488 319,330 - - - - (30,628) - 41,633,758 47,426,149 52,779,030 57,628,374 59,200,802 68,741,316 - - - - - - - - - - - - 60,736,499$ 70,129,803 $ 52,193,235 $ 63,243,775 $ 66,775,901 $ 55,906,041 $
CITY OF MENIFEE
FUND BALANCES OF GOVERNMENTAL FUNDS
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As of June 30, 2014 2015 2016 2017
GENERAL FUND:
Nonspendable - $ 2,173,477$ 1,880,909 $ 64,540 $ Committed 6,546,700 6,546,700 6,546,700 3,543,729 Assigned 40,836 40,836 226,500 461,890 Unassigned 2,002,972 (486,600) 1,268,621 8,547,350 Total General Fund 8,590,508 8,274,413 9,922,730 12,617,509
ALL OTHER GOVERNEMENTAL FUNDS
Nonspendable - - - - Restricted for Community Development Projects 785,619 1,184,687 4,180,264 4,660,916 Restricted for Public Safety 166,413 194,826 267,934 234,782 Restricted for Engineering/Public Works 18,577,229 25,022,383 23,908,504 19,781,187 Restricted for Capital Projects 23,541,211 20,022,031 9,619,732 5,461,997 Restricted for Debt Service 1,338,301 1,354,467 1,359,694 1,358,034 Unassigned (1,655,616) - - - Total All Other Governmental Funds 42,753,157 47,778,394 39,336,128 31,496,916 TOTAL GOVERNMENTAL FUNDS 51,343,665 $ 56,052,807 $ 49,258,858 $ 44,114,425 $
The City of Menifee was incorporated during fiscal ye ar 2008-2009. No information prior to that date is available.
1 Fund balance classification reflects GASB 54 implementation be ginning Fiscal Year 2011.
2 Establish $15,000 self-insurance, retention reserve.
3 Certificates of Participations issued for capital construction. 4 Establish emergency reserve of 20% of General Fund expenditures and $250,000 towards construction of new City Hall.
5 Transferred proceeds from Certificates of Participation to debt service fund. 6 Transferred proceeds from Certificates of Participation to capital project fund.
Source: City Finance Department
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2018 2019 2020 2021 2022 2023
28,073$ 65,751 $ 13,473 $ - $ - $ - $ 3,543,729 3,543,729 5,688,958 7,642,510 13,365,638 15,155,133 4,396,969 13,437,218 8,701,430 9,349,272 12,362,984 18,539,728 16,886,664 18,089,574 27,202,215 39,321,579 51,177,085 56,272,032 24,855,435 35,136,272 41,606,076 56,313,361 76,905,707 89,966,893 - - - 174,389 166,085 237,451 5,363,977 6,373,715 4,569,409 5,839,667 12,368,526 14,895,725 12,472 191,737 - - - - 32,360,079 44,929,363 40,165,976 48,539,844 60,237,030 64,574,642 - - - - - - 1,371,931 7,884,527 1,572,272 381,638 397,206 424,763 (154) - (57,963) (446,980) (412,708) (1,158,298) 39,108,305 59,379,342 46,249,694 54,488,558 72,756,139 78,974,283 63,963,740$ 94,515,614 $ 87,855,770 $ 110,801,919 $ 149,661,846 $ 168,941,176 $
CITY OF MENIFEE
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
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For the Year Ended June 30, 2014 2015 2016 2017
REVENUES
Taxes 20,853,483 $ 24,744,819 $ 25,477,199 $ 24,813,331 $ Licenses and permits 6,330,389 5,463,643 6,832,170 8,061,714 Intergovernmental 5,527,820 9,151,033 6,369,501 5,748,048 Charges for services 167,830 658,972 1,630,272 6,219,925 Use of money and property 154,230 151,449 254,526 221,382 Fines and forfeitures 447,996 502,613 553,986 655,544 Developer participation 4,878,374 6,079,281 4,518,711 5,295,110 Miscellaneous 53,677 54,509 77,778 95,359 Contributions from property owners - - - - Total Revenues 38,413,799 46,806,319 45,714,143 51,110,413
EXPENDITURES
Current:
General government 3,296,176 4,087,029 4,253,708 5,391,081 Public safety 17,363,329 19,336,968 20,836,489 21,350,629 Community development 3,126,267 2,838,474 3,154,443 3,643,590 Parks and recreation 555,384 2,075,562 1,182,854 2,461,119 Engineering and public works 6,583,127 11,457,614 20,576,193 5,947,990 Capital outlay 6,804,204 997,142 1,200,818 16,157,949 Debt service:
Principal retirement 350,000 360,000 370,000 380,000 Interest and fiscal charges 951,387 944,388 933,587 922,488 Bond issuance costs - - - - Total Expenditures 39,029,874 42,097,177 52,508,092 56,254,846 Excess (Deficiency) of Revenues
Over (Under) Expenditures (616,075) 4,709,142 (6,793,949) (5,144,433)
OTHER FINANCING SOURCES (USES)
Transfers in 20,916,110 1,566,639 1,645,900 1,442,815 Transfers out (20,916,110) (1,566,639) (1,645,900) (1,442,815) Other debts issued - - - - Payment to refunded bond escrow agent - - - - Lease/subscription acquisition - - - - Total Financing Sources (Uses) - - - - Net Change in Fund Balances (616,075) 4,709,142 (6,793,949) (5,144,433) Fund Balances, beginning of year 51,959,740 51,343,665 56,052,807 49,258,858 Restatements - - - - Fund Balances, end of year $ 51,343,665 $ 56,052,807 $ 49,258,858 $ 44,114,425
DEBT SERVICE AS A PERCENTAGE OF
NON CAPITAL EXPENDITURES 4.04% 3.17% 2.54% 3.25%
Source: City Finance Department
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2018 2019 2020 2021 2022 2023
34,743,397$ 38,523,243 $ 44,111,372 $ 49,468,537 $ 56,042,702 $ 58,634,584 $ 10,867,727 10,765,702 10,011,450 10,914,819 13,343,572 10,929,850 12,580,822 13,820,929 16,762,108 19,146,908 23,165,414 26,597,128 6,677,180 8,428,907 8,177,911 9,431,071 10,803,623 20,327,036 613,165 2,011,031 1,805,179 63,611 (4,886,358) 1,232,839 718,890 942,403 598,244 329,487 438,833 306,549 9,078,142 14,077,226 5,559,177 9,600,934 10,262,446 13,877,821 128,323 162,935 117,986 630,271 114,987 278,328 - - - - 14,110,185 10,805,326 75,407,646 88,732,376 87,143,427 99,585,638 123,395,404 142,989,461 6,151,518 8,169,511 9,981,475 13,962,912 18,688,827 31,107,678 25,062,622 27,389,574 33,869,480 29,174,294 34,950,472 42,281,642 4,872,304 5,693,505 5,196,946 5,377,780 6,811,947 8,740,384 2,833,753 3,592,890 3,977,479 4,943,713 5,752,300 7,309,632 9,438,808 13,436,193 20,997,861 7,041,057 5,528,660 6,546,643 5,898,238 5,143,341 18,164,545 13,332,826 17,605,427 25,957,044 390,000 410,000 475,088 2,585,843 7,250,613 1,432,841 911,088 895,488 1,140,397 540,059 1,202,754 1,420,140 - - - 306,935 40,000 - 55,558,331 64,730,502 93,803,271 77,265,419 97,831,000 124,796,004 19,849,315 24,001,874 (6,659,844) 22,320,219 25,564,404 18,193,457 1,475,606 2,444,198 11,477,822 5,509,717 6,051,725 5,074,330 (1,475,606) (2,444,198) (11,477,822) (5,509,717) (6,051,725) (5,074,330) - 6,550,000 - 17,885,000 6,355,581 - - - - (17,372,007) - - - - - - 6,939,942 1,309,745 - 6,550,000 - 512,993 13,295,523 1,309,745 19,849,315 30,551,874 (6,659,844) 22,833,212 38,859,927 19,503,202 44,114,425 63,963,740 94,515,614 87,855,770 110,801,919 149,661,846 - - - 112,937 - - $ 63,963,740 $ 94,515,614 $ 87,855,770 $ 110,801,919 $ 149,661,846 $ 169,165,048
2.62% 2.19% 2.14% 4.89% 10.54% 2.89%
CITY OF MENIFEE
MAJOR REVENUES BY SOURCE – GOVERNMENTAL FUNDS
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Fiscal Property Sales Motor Vehicle Franchise
Year Tax Tax In Lieu Tax Tax Total
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 2022 26,024,300 31,684,459 115,162 4,055,791 61,879,712 2023 30,117,514 31,922,596 109,295 4,433,059 66,582,464 Source: City Finance Department
CITY OF MENIFEE
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
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Total Taxable
Fiscal Assessed Percent
Year Secured Unsecured SBE Nonunitary Exemptions Value Change 2014 6,179,136,921$ 94,335,266 $ 440,228,271 $ (19,630,098) $ 6,694,070,360 $ -4.13% 2015 6,987,584,499 92,460,808 346,628,271 (19,962,118) 7,406,711,460 3.59% 2016 7,686,424,297 95,234,280 295,028,271 (131,240,361) 7,945,446,487 10.65% 2017 8,204,501,816 94,227,737 253,828,271 (144,682,408) 8,407,875,416 7.27% 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 5.82% 2020 10,257,311,309 119,918,747 13,800,000 (1,199,425) 10,389,830,631 9.05% 2021 11,130,368,586 140,615,466 - - 11,270,984,052 7.09% 2022 12,129,504,862 174,182,957 - - 12,303,687,819 9.05% 2023 13,872,320,886 165,575,367 - - 14,037,896,253 0.00% Source: HdL Companies, Riverside County Assessor
In 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 be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions , property is only re-assessed at the time it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
CITY OF MENIFEE
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
BY USE CATEGORY
-100-
Total Taxable Total
Fiscal Residential Commercial Industrial Assessed Percent Direct Year Property Property Property Dry Farm Other Exemptions Value Change Rate 2014 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% 0.14552 2015 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% 0.14230 2016 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% 0.14069 2017 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% 0.13943 2018 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% 0.13809 2019 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% 0.13739 2020 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% 0.13697 2021 9,605,927,556 718,201,265 92,954,481 61,632,016 792,268,734 - 11,270,984,052 8.48% 0.14302 2022 10,521,453,404 768,722,082 96,436,403 69,173,323 847,902,607 - 12,303,687,819 9.16% 0.14144 2023 12,057,202,958 923,154,976 133,416,320 71,921,568 852,200,431 - 14,037,896,253 14.10% 0.00000 Source: HdL Companies, Riverside County Assessor
In 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-assessed at 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 above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
CITY OF MENIFEE
DIRECT AND OVERLAPPING PROPERTY TAX RATES
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Agency 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Basic 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 0.21100 0.15800 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 Menifee School Debt Service 0.03421 0.03275 0.03010 0.03269 0.06080 0.06303 0.06277 0.06111 0.06319 0.06319 Metropolitan Water District Original Area 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Perris Union High School Debt Service 0.06970 0.06303 0.06236 0.06092 0.01320 0.01320 0.08244 0.08569 0.01320 0.01320 Mt. San Jacinto Jr. College - - 0.01394 0.01320 0.05675 0.05243 0.01320 0.01320 0.08859 0.08859 Total Direct & Overlapping Tax Rates 1.31841 1.25728 1.14596 1.14711 1.18425 1.18216 1.21191 1.21350 1.21848 1.21848 City of Menifee Share of 1% per Prop 13 0.12740 0.12740 0.12740 0.12740 0.12904 0. 12903 0.12903 0.12643 0.12643 0.12643 Total Direct Rate** 0.06373 0.06617 0.14552 0.1422 7 0.14069 0.13943 0.13809 0.14302 0.14144 0.14144 This 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 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
CITY OF MENIFEE
PRINCIPAL PROPERTY TAX PAYERS
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Percent Percent
of Total City of Total City
Total Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Rank Value Value Rank
MG Artesa Apartments LLC 156,000,000$ 1.11% 1
Newport Property LLC 108,218,000 0.77% 2
Malcolm Jerome and Maxine Winer 93,307,553 0.66% 3 Antelope Ridge Apartments LLC 48,684,839 0.35% 4 41,955,120 $ 0.63% 4 Cantabria Development LP 47,822,775 0.34% 5 Pulte Home Company 46,981,731 0.33% 6
PHH Real Estate 33,936,461 0.24% 7 29,245,451 0.44% 7 Lennar Home of California 32,927,129 0.23% 8 BLC Fleming LLC 32,198,299 0.23% 9
Center Pointe 30,489,328 0.22% 10
Inland Empire Energy Center, LLC 440,200,000 6.58% 1 Donahue Schriber Realty Group 50,028,369 0.75% 2 Carrington Place Limited 45,117,459 0.67% 3
Stark Menifee Land 40,046,539 0.60% 5
Strata Cantabria LLC 36,576,510 0.55% 6
Target Corporation 23,215,322 0.35% 8
HCP HB2 Carrington Cherry Hills 21,067,350 0.31% 9 Lowes HIW Inc 18,617,434 0.28% 10
Totals 630,566,115 4.49% 746,069,554 11.15% All Other 13,407,330,138 95.51% 5,948,000,806 88.85% City Total 14,037,896,253 $ 100.00% 6,694,070,360 $ 100.00% 2023 2014
Source: HDL Companies
CITY OF MENIFEE
PROPERTY TAX LEVIES AND COLLECTIONS
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Total Tax
Fiscal Levy for Percentage o f Amount Collected in Total Tax Percentage Year Fiscal Year Amount Levy Subsequent Year Collections of Levy 2014 9,319,167$ 9,159,856 $ 98.29% 159,311 $ 9,319,168 $ 100% 2015 10,165,063 10,091,501 99.28% 73,562 10,165,064 100% 2016 10,903,160 10,707,116 98.20% 196,044 10,903,161 100% 2017 11,592,282 11,391,985 98.27% 200,297 11,592,283 100% 2018 12,027,685 11,935,913 99.24% 91,772 12,027,686 100% 2019 13,268,770 13,077,732 98.56% 191,038 13,268,771 100% 2020 14,397,065 14,170,014 98.42% 227,051 14,397,066 100% 2021 16,382,479 16,347,132 99.78% 35,348 16,382,481 100% 2022 17,649,773 17,263,608 97.81% 386,165 17,649,774 100% 2023 20,540,213 20,423,009 99.43% 117,205 20,540,215 100% Source: County of Riverside
Fiscal Year of Levy
Collected within the
With the passage of Resolution 10-138 in June 2010, the City of Menifee agreed to participate in the Riverside County Teeter Program. Under the Teeter Plan, the City is paid in full each year for the actual amount of property taxes levied, regardless of the amount of delinquencies.
CITY OF MENIFEE
RATIO OF OUTSTANDING DEBT BY TYPE
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General Lease Certificates Distribution Total Percentage o f Fiscal Obligation Revenue of Facilities County Othe r Governmental Personal Per Year Bonds Bonds Participation Financing Repayment (1) liabilites Activities Income Capita (2) 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 0.09% 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 2022 - - 16,315,000 5,900,754 - 5,922,140 28,137,894 0.84% 216.74 2023 - - 15,640,000 5,485,266 - 5,703,908 26,829,174 0.80% 243.83 (1) County Repayment is not bonded debt
(2) See the schedule of demographic and economic statistics for population data.
Source: City Finance Department
CITY OF MENIFEE
RATIO OF GENERAL BONDED DEBT OUTSTANDING
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Total Less Percent
General Debt Net of Debt to Debt
Fiscal Assessed Obligation Service Bonded Assessed per
Year Population Value Bonds Fund (1) Debt Value (2) Capita 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% - 2022 106,627 12,303,687,819 - - - 0.00% - 2023 110,034 14,037,896,253 - - - 0.00% - (1) Amounts available for repayment of general obligation bonds. (2) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
Source: City Finance Department
CITY OF MENIFEE
DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 2023
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Percent City's
Total Applicable Share o f
Debt to City Debt
Direct Debt
City of Menifee-County Loan Repayment - $ 0.0% - $ City of Menifee-Certificates of Participation 15,640,000 100.0% 15,640,000 City of Menifee-Distribution Facilities Financing Agreement 5,485,266 100.0% 5,485,266 Lease Liabilities 5,175,405 100.0% 5,175,405 Subscription Liabilities 528,503 100.0% 528,503 Total Direct Debt 26,829,174$ 100.0% 26,829,174$
Direct and Overlapping Tax and Assessment Debt
Metropolitan Water District 19,215,000 $ 0.371% 71,288 $ Riverside County Flood Control & Water Conservation District Zone 5,380,000 19.620% 1,055,556 Eastern Municipal Water District Improvement Districts 11,505,000 80.202-100. 9,720,165 Mount San Jacinto Community College District 247,850,000 10.793 29,233,908 Perris Union High School District 298,735,042 57.517 173,920,554 Menifee Union School District 120,934,720 75.293 91,027,564 Perris Union High School District Community Facilites District No. 9 31,050,000 60.602 18,816,921 Menifee Union School District Community Facilities Districts 191,515,000 37.715-100. 188,018,165 Romoland School District Communit Facilities Districts 190,915,000 54.833-100. 178,121,529 Eastern Municipal Water District Community Facilities Districts 95,646,000 62092-100. 92,254,748 City of Menifee Community Facilities District Nos. 2016-2 and 2017- 25,610,000 100 25,610,000 Riverside County Community Facilities Districts 28,810,000 25990-95.869 21,903,757 Eastern Municipal Water District 1915 Act Bonds 2,080,000 64.200 1,337,149 Total Direct and Overalapping Tax and Assessment Debt 831,091,304 $ Overlapping General Fund Debt:
Riverside County General Fund Obligations 686,776,829 $ 3.880% 26,646,941 $ Riverside County Pension Obligations 748,540,000 3.880 29,043,352 Perris Union High School District Certificates of Participation 40,481,898 58.219 23,568,156 Menifee Union School District Certificates of Participation 45,258,119 75.270 34,065,786 Total Gross Overlapping General Fund Debt 113,324,235$
Less: Riverside County Supported Obligations -
Total Net Overlapping General Fund Debt 113,324,235$
Overlapping Tax Increment Debt 224,382,041$ 2.137-11.895 14,282,720$ (Riverside County Successor Agency)
Total Direct Debt 26,829,174$
Total Gross Overlapping Debt 958,698,259$
Total Net Overlapping Debt 958,698,259$
Total Direct and Overlapping Debt 985,527,433$
Gross Combined Total Debt 1 985,527,433$
Net Combined Total Debt 985,527,433$
Ratios to 2022-23 Assessed Valuation:
Total Direct Debt 0.00%
Total Direct and Overlapping Tax and Asssessment Debt 5.91% Gross Combined Total Debt 6.82%
Net Combined Total Debt 6.82%
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total assessed value. (1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
CITY OF MENIFEE
LEGAL DEBT MARGIN INFORMATION
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2018 2019 2020 2021 2022 2023
Assessed valuation 8,896,947,714 $ 9,702,296,245 $ 10,389,830,631 $ 11,270,984,052 $ 12,303,687,819 $ 14,037,896,253 $ Debit Limit Percentage 15% 15% 15% 15% 15% 15%
Debt limit 1,334,542,157 1,455,344,437 1,558,474,595 1,690,647,608 1,845,553,173 2,105,684,438 Total Net Debt Applicable to the Limit
General Obligation Bonds: - - - - - - Legal debt margin 1,334,542,157 $ 1,455,344,437 $ 1,558,474,595 $ 1,690,647,608 $ 1,845,553,173 $ 2,105,684,438 $ Total Debt Applicable to the Limit
as a Percentage of Debt Limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% The City of Menifee has no general obligation indebtedness.
Only last five years shown.
Source: City Finance Department, HdL Companies
Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City.
CITY OF MENIFEE
DEMOGRAPHIC AND ECONOMIC STATISTICS
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Personal Per Capita Median Occupied Persons
Fiscal Income Personal Home Housing per Median Unemployment Year Population (In 1000) Income Price Units Household Age Rate 2014 83,716 1,808,600 $ 21,604 $ 250,000 $ 28,933 2.89 38.0 8.90% 2015 85,385 1,868,959 22,333 280,000 29,383 2.91 37.9 9.60% 2016 88,524 1,891,622 21,253 300,000 30,226 2.93 38.7 7.90% 2017 90,660 1,936,648 21,253 325,000 31,253 3.94 37.4 7.10% 2018 91,902 2,055,023 22,667 340,000 31,253 2.94 37.4 4.70% 2019 93,452 2,264,845 24,235 350,000 31,222 2.99 37.9 4.50% 2020 97,093 2,450,076 25,234 374,000 33,348 2.91 37.9 4.00% 2021 99,686 2,647,056 26,553 450,000 34,256 2.91 37.7 10.10% 2022 106,627 2,871,857 26,933 560,000 36,308 2.94 38.0 7.50% 2023 110,034 3,340,202 30,356 525,000 37,979 2.89 37.3 4.20% Source: Riverside County Center for Demographic Research, California Department of Finance E-5
CITY OF MENIFEE
PRINCIPAL EMPLOYERS
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Number of Percentage of
Employer Employees Employment Rank
Mt San Jacinto College District 1,604 28.75% 1
Menifee Union School District 1,467 26.29% 2
Romoland Elementary School District 602 10.79% 3
Stater Brothers 348 6.24% 4
City of Menifee 333 5.97% 5
Menifee Global Medical Cente
r 327 5.86% 6
Target Corporation 312 5.59% 7
United Parcel Service (UPS) 227 4.07% 8
Southern California Edison 187 3.35% 9
Texas Roadhouse 173 3.10% 10
Total Employment Listed 5,580 100.00%
Source: Menifee Valley Chamber of Commerce, City of Menifee Business License Division 2023
CITY OF MENIFEE
FULL AND PART-TIME CITY EMPLOYEES BY PROGRAM
-110-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
FUNCTION
City Manager 1.25 2.00 2.00 1.00 4.00 4.00 5.00 5.00 8.00 10.00 Administrative Services 2.75 4.50 5.00 6.00 - - - - - - City Clerk 2.00 2.00 2.00 2.00 3.00 3.00 5.00 5.00 6.00 6.00 Emergency Services 0.75 - - - - - - Finance 6.00 6.00 6.00 7.00 10.00 12.50 13.50 13.50 17.00 21.00 Human Resources 1.00 1.00 1.00 - 4.00 8.50 6.50 6.50 8.00 9.00 Information Technology - - - - 2.00 5.00 8.00 8.00 13.00 14.00 Economic Development 2.00 2.00 2.00 3.00 3.00 5.00 3.50 3.50 4.00 5.00 Community Development 3.00 4.00 4.00 5.00 11.00 13.50 13.00 13.00 15.00 15.50 Code Enforcement 4.00 5.00 4.00 4.00 7.00 7.00 5.00 6.00 8.00 8.00 Fire - - - - 1.00 2.00 2.00 2.00 2.00 2.00 Engineering/ Pub Works 6.00 10.00 12.00 16.00 24.00 32.00 33.00 33.00 44.50 46.50 Building/Safety 4.00 7.00 8.00 9.00 12.00 14.00 12.00 12.00 15.00 15.00
Community Services 2.25 3.00 13.00 18.58 21.55 31.68 23.39 23.39 44.20 48.40 Police - - - - - 76.00 77.00 78.00 118.00 120.00 Total 35.00 46.50 59.00 71.58 102.55 214.18 206.89 208.89 302.70 320.40 Part-Time Employees are expressed as Full-Time Equivalents.
Source: City Finance Department
CITY OF MENIFEE
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
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As of June 30, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FUNCTION
Public Works
Streets (Miles) 244 265 317.9 317.9 317.9 317.9 327.1 341.0 347.2 355.9 T r a f f i c S i g n a l s 6 76 77 36 87 17 27 58 4 8 9 9 9 Community Services
Parks 7 7 7 8 11 12 14 14 15 21
Park Acreage 39 39 39 45 53.7 58.7 79.1 79.0 85.1 100.1 Source: City Public Works Department, Community Services
CITY OF MENIFEE
OPERATING INDICATORS BY FUNCTION/PROGRAM
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As of June 30, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FUNCTION
Police Services
Physical Arrests 1,107 1,061 1,295 1,412 1,385 1,500 1,582 1,403 1,154 1,471 Parking Citations 1,208 1,763 330 230 569 435 241 473 356 528 Traffic Citations 1,199 3,438 3,720 1,733 4,422 5,927 2,492 2,877 3,835 7,125 Calls for Service 41,052 44,395 47,728 47,926 47,961 49,291 48,615 52,152 50,342 73,192 Fire Services
Medical/Public service Calls 7,301 7,220 9,741 10,081 9,342 10,071 9,172 10,232 10,612 11,031 Fire calls 122 130 144 184 182 167 193 225 210 188 All other calls 960 1,810 1,310 1,499 2,158 1,552 2,315 1,494 2,327 2,359 Total 8,443 9,160 11,195 11,764 11,682 11,790 11,680 11,951 13,149 13,578 Public Works
Potholes/Skinpatch (square feet) 15,067 16,121 12,335 18,215 31,458 135,277 63,348 16,358 20,052 104,000 Curb Refurbishment/Painting (linear feet) 10,414 12,877 285 3,254 983 722 3,540 7,276 39,246 1,200 Right of Way Clearing (linear feet) 119,137 116,237 14,020,200 13,853,520 4,475,936 886,818 20,006 988,916 381,828 1,600 Traffic Signs repaired/replaced 911 729 213 275 821 418 461 1,176 572 638 Building & Safety
Building Permits Issued 3,180 2,969 4,031 4,365 5,179 6,232 6,147 6,778 5,959 6,261 Building Inspections Completed 13,119 10,655 13,410 15,417 21,522 23,540 25,480 33,567 30,736 28,363 Community Development
Planning Applications Completed 216 189 275 327 259 208 348 393 402 336 Source: City Finance Division, City Community Development Department, City Building Department, City Police Services Department, City Public Works Department
CITY OF MENIFEE
MISCELLANEOUS STATISTICS
JUNE 30, 2023
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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 County Population: 110,034
Area in square miles: 46
Form of Government: Council-Manager
Date of Incorporation: October 1, 2008
Number of Full Time Employees: 320.40
Public Safety:
Police Department Menifee City Police Department as of 6/30/2023, 120 FTE Fire Department
Riverside County/Cal Fire Department contract, 65 FTE, 4 Fire Stations
Library: 2 branches, Riverside County Library System
Recreation:
24 Parks owned by Valley Wide Recreation and Park District 21 Parks owned by the City
Schools:
Elementary 17
Middle Schools 7
High Schools 5
Community Colleges 1
Source: City Finance Department
CITY OF MENIFEE
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS (IN THOUSANDS OF DOLLARS)
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Apparel Stores 30,591 $ 27,964 $ 30,952 $ 34,074 $ 35,524 $ 38,787 $ 41,407 $ 30,146 $ 45,691 $ 50,499 $ General Merchandise 62,727 66,085 68,839 69,651 71,315 75,403 76,332 81,531 105,862 107,511 Food Stores 23,644 23,456 26,677 28,867 31,793 36,815 39,660 47,444 48,980 53,328 Eating and Drinking Places 72,276 80,576 91,283 102,449 116,287 125,691 144,016 143,668 180,789 206,713 Building Materials 37,355 40,526 72,621 79,070 87,091 93,238 91,679 111,335 144,990 147,047 Auto Dealers and Suppliers 25,036 33,916 41,301 54,074 57,404 55,065 60,944 52,579 61,433 67,155 Service Stations 100,385 102,256 91,394 84,643 95,334 117,995 123,332 104,514 153,057 182,951 Other Retail Stores 95,286 103,300 118,629 130,023 140,778 146,801 143,542 132,786 178,792 179,780 All other Outlets 36,137 39,131 45,703 51,449 53,236 60,917 62,444 56,727 229,999 260,930 Total 483,437 $ 517,210 $ 587,399 $ 634,299 $ 688,762 $ 750,711 $ 783,357 $ 760,729 $ 1,149,592 $ 1,255,914 $ 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.
CITY OF MENIFEE
TOP 25 SALES TAX PRODUCERS
FOR FISCAL YEAR ENDED JUNE 30, 2023 AND JUNE 30, 2013
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Business Business
Business Name Category Business Name Category
Ahern Rentals Repair Shop/Equipment Rentals Americamax Contractors Arco AM PM Service Stations Arco AM PM Service Stations Arco AM PM Service Stations Best Buy Electronics/Appliance Stores Arco AM PM Service Stations BJ's Restaurant Brewhouse Casual Dining Arco AM PM Service Stations Chevron Service Stations
Best Buy Electronics/Appliance Stores Chevron/Circle K Service Stations Chevron/Circle K Service Stations Circle K Service Stations Circle K Service Stations Grove Lumber Building Materials Grove Lumber Building Matericals Kohl's Department Stores Home Goods Home Furnishings Living Spaces Furniture Home Furnishings Imperial Sprinkler Supply Garden/Agricultural Supplies Lowes Building Materials Kohls Department Stores McDonald's Quick-Service Restaurants Living Spaces Furniture Home Furnishings Menifee Car Wash Service Stations Lowes Building Matericals Menifee Mart Service Stations Menifee Car Wash Service Stations Ralphs Grocery Stores Menifee Lakes Plaza Chevron Service Stations Richardson's Auto & RV Sales Trailers/RVs Omnimax International Heavy Industrial Rite Aid Drug Stores Raising Cane's Quick-Service Restaurants Ross Dress for Less Family Apparel Richardsons Auto & RV Sales Trailers/RVs Shell Service Stations Ross Dress for Less Family Apparel Stater Bros. Markets Grocery Stores Shell Service Stations Target Discount Dept Stores
Stater Brothers Grocery Stores Texas Roadhouse Casual Dining Target Discount Dept. Stores T J Maxx Family Apparel
Texas Roadhouse Casual Dining United Oil Service Stations TJ Maxx Family Apparel Walgreens Drug Stores
Percentage of Fiscal Year Total
Paid by Top 25 Accounts 54.43% 64.01%
Source: HdL Reports
2022 2013
CITY OF MENIFEE
MEASURE DD 1% SALES TAX REVENUES AND EXPENDITURES HISTORY JUNE 30, 2022
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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 $ 2022 2023
Revenues
1% Transaction Tax 19,607,014 $ 19,634,904 $
Interest Income (110,856) 236,870
Total Revenue: 19,496,159 19,871,774
Expenditures
Code Enforcement 319,706 357,907
County Sheriff Services - -
County Fire Services 5,171,600 10,928,976
Capital Equipment 42,319 460,204
Capital Projects-Roads 2,765,313 748,442
Menifee Police 5,746,016 6,966,283
Total Expenditures: 14,044,955 19,461,812
Cumulative Balance: 17,122,825$ 17,532,786 $
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: City Finance Department