ANNUAL COMPREHENSIVE
FINANCIAL REPORT (ACFR)
FISCAL YEAR ENDED JUNE 30, 2025
CITY OF MENIFEE
CALIFORNIA
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF MENIFEE, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2025
Prepared by:
Finance Department
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF MENIFEE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION (unaudited)
Letter of Transmittal ................................................................................................................................ i Listing of Elected Officials .................................................................................................................... vii Organizational Chart ........................................................................................................................... viii Executive Staff ....................................................................................................................................... ix GFOA Award of Financial Reporting Achievement ................................................................................ x
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT ................................................................................................ 1
MANAGEMENT’S DISCUSSION AND ANALYSIS .............................................................................. 5
BASIC FINANCIAL STATEMENTS
Government - Wide Financial Statements
Statement of Net Position .......................................................................................................... 15
Statement of Activities ............................................................................................................... 16
Fund Financial Statements
Balance Sheet - Governmental Funds ...................................................................................... 17
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................................... 18
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ................................................................................................................. 19
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................................................ 20
Statement of Fiduciary Net Position - Fiduciary Funds ............................................................. 21
Statement of Changes in Fiduciary Net Position - Fiduciary Funds .......................................... 22
Notes to Financial Statements ......................................................................................................... 23
CITY OF MENIFEE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - General Fund .......................................................................... 54
Budgetary Comparison Schedule - Development Impact Fees ...................................................... 55
Budgetary Comparison Schedule - Grants Fund ............................................................................ 56
Budgetary Comparison Schedule - TUMF Fees Funds ................................................................... 57
Schedule of the City’s Proportionate Share of the Pension Plan’s Net Pension Liability and Related Ratios as of the Measurement Date .......................................................................... 58
Schedule of the Pension Plan’s Contributions ............................................................................... 59
Schedule of Changes in the Total OPEB Liability and Related Ratios .......................................... 60
Notes to the Required Supplementary Information ......................................................................... 61
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Non-major Governmental Funds Descriptions ................................................................................ 62
Combining Balance Sheet - Non-major Governmental Funds ....................................................... 65
Combining Statement of Revenues, Expenditures and Changes .... in Fund Balances - Non-major Governmental Funds ................................................................ 69
Budgetary Comparison Schedules - Special Revenue Funds
Gas Tax ..................................................................................................................................... 73 SB 1 ........................................................................................................................................... 74 Measure A ................................................................................................................................. 75 Air Quality Management District ................................................................................................ 76 Landscape and Lighting Maintenance District .......................................................................... 77 Community Facilities District - Audie Murphy Ranch ................................................................ 78 Community Facilities District - Hidden Hills ............................................................................... 79 Community Facilities District - 2014-1 Town Center ................................................................. 80 Community Facilities District - 2014-2 Commerce Point ........................................................... 81 Community Facilities District - 2015-2 Citywide ........................................................................ 82 Community Facilities District - 2017-1 Maintenance Services .................................................. 83 Public Education and Governmental Access ............................................................................ 84 County Service Areas (CSA) ..................................................................................................... 85 Maintenance CFD ...................................................................................................................... 86
Budgetary Comparison Schedule - Capital Projects Fund
Bonded CFDs ............................................................................................................................. 87 Capital Projects Fund ................................................................................................................ 88
Budgetary Comparison Schedule - Debt Service Fund
Debt Service .............................................................................................................................. 89
CITY OF MENIFEE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION (unaudited)
Statistical Section Descriptions ................................................................................................. 90 Net Position ............................................................................................................................... 91 Changes in Net Position ............................................................................................................ 93 Fund Balances of Governmental Funds .................................................................................... 95 Changes in Fund Balances of Governmental Funds ................................................................ 97 Major Revenues by Source - Governmental Funds .................................................................. 99 Assessed Value and Estimated Actual Value of Taxable Property ......................................... 100 Assessed Value and Estimated Actual Value of Taxable Property by Use Category ............. 101 Direct and Overlapping Property Tax Rates ........................................................................... 102 Principal Property Taxpayers .................................................................................................. 103 Property Tax Levies and Collections ....................................................................................... 104 Ratio of Outstanding Debt by Type ......................................................................................... 105 Ratio of General Bonded Debt Outstanding ............................................................................ 106 Direct and Overlapping Bonded Debt ..................................................................................... 107 Legal Debt Margin Information .................................. ..... ........................................................ 108 Demographic and Economic Statistics .................................................................................... 109 Principal Employers ................................................................................................................. 110 Full and Part-time City Employees by Program ...................................................................... 111 Capital Asset Statistics by Function/Program ......................................................................... 112 Operating Indicators by Function/Program ............................................................................. 113 Miscellaneous Statistics .......................................................................................................... 114 Taxable Sales by Category ..................................................................................................... 115 Top 25 Sales Tax Producers ................................................................................................... 116 Measure DD 1% Sales Tax - Revenues and Expenditures History ………………………….... 117
THIS PAGE INTENTIONALLY LEFT BLANK
INTRODUCTORY SECTION
THIS PAGE INTENTIONALLY LEFT BLANK
December 18, 2025
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, 2025. 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 Statement No. 34 financial report standards, providing the reader with 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, 2025. The independent auditor’s report is located at the front of the financial section of this report.
Generally accepted accounting principles require that management provide a narrative introduction overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal 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.
-i-
-ii-
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 2025, the City has a population of 115,316 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 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 services 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 (SoCalGas), 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. The City has experienced significant growth over the past fiscal year, welcoming several new businesses, including the Menifee Center for Medical Excellence, Velo Training Facility, Rasoi Indian Food, Yoshiharu Ramen, and Grey Iron Brewing Company.
Looking ahead, the City anticipates further expansion with the introduction of key establishments such as Richie's Diner, Rady Children's Health, Planet Fitness, Scripps Exploring Academy, and La Bufadora Baja Grill, and Onyx Lagree Studio. These developments are expected to enhance the local economy and provide residents with increased access to diverse services and amenities.
During April 2025, the official groundbreaking took place for the Menifee Valley Business Park, a Class A industrial park slated to bring jobs, business opportunities, and economic growth for the region. Key efforts completed or initiated by the City include, in the spring of 2025, the City acquired nearly 400 acres of land, “Menifee Hills”, for permanent open space preservation, allowing for future hiking and biking trails. Additionally, in the spring of 2025 the City embarked on the journey of proactively putting efforts into a consolidated Placemaking, Unique Identity, Tourism Master Plan, with the intent of developing a roadmap to address some of the city’s core strategic goals.
-iii-
Local Economy
Mirroring the national, state and regional economies, the City of Menifee’s local economy reflects the impacts of decelerating national historic inflation, continued international supply chain issues, and higher interest rates. Relative to the unemployment rate during the Covid-19 pandemic, the unemployment rate has significantly improved over the past few years. The unemployment rate remained around 5% for 2024, still aligned with a softening labor market experienced at the statewide level over the last year. The existing high-interest rate environment and more cautious lending from banks have impacted credit conditions that in turn have affected job growth in credit- sensitive sectors. During the FY2024-25 period the City and local region have continued to experience a markedly slower pace of permitting and planning application activity compared to the last five years. Higher interest rates continue to impact the demand for housing and make construction loans more expensive. Locally, the number of building permits issued has experienced an increase of 10.93% (from 4,015 to 4,454), while the number of planning applications saw an overall decrease of 8.12% (from 342 to 196).
Comparable to national trends, retail sales activity during the FY2024-25 period was marked by overall slower growth. Overall, gross Bradley Burns sales tax collections nominally increased from $16,994,440 in fiscal year 2023-24 to $17,012,539 in FY2024-25. $3,529,453 of the of the Bradley Burns sales tax collected in FY2024-25 is directly attributable as one time sales tax revenue resulting from the construction of the Nova Park Battery Storage project. A clause within the development agreement of the project conditioned the sales tax associated with the materials of construction for the project be reported and remitted to the City. Excluding the Nova Park associated sales tax remittances, the overall Bradley Burns sales tax change from 2023-24 to 2024-25 was an increase $536,579 or 4.14% from the prior year. Similarly, for Quality of Life (Measure DD) sales tax collections decreased from $24,088,083 in fiscal year 2023-24 to $23,370,559 in fiscal year 2024-25, a 2.98% decrease. Included within the FY2024-24 Quality of Life sales tax revenue includes $3,530,687 of one time sales tax revenue resulting from the construction of the Nova Park Battery Storage project. Excluding the Nova Park Project remittances between the two years, the change in in Quality of Life revenue from FY2023-24 to FY2024-25 was a decrease of $197,379 or 0.99%. This was the eighth 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 collections reflected overall increases from the prior year, the increases were:
1) principally attributed to one time sales tax revenue associated with the Nova Park Battery
10.20%8.90%9.60%7.90%7.10%5.20%4.20%4.00%10.10%7.50%4.20%5.00%5.00%2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4UNEMPLOYMENT RATE BY CALENDAR YEAR ( P E R H D L ) -iv-
Storage Project and 2) excluding the Nova Park revenues, modest and reflecting the overall national financial conditions signaling a potential economic slowdown in the upcoming year.
Quality of Life revenues, including one time receipts, were lower than the prior year. As the City enters the new fiscal year, projected revenues in sales tax (Bradley Burns and Quality of Life) are forecast to be modest growth from the FY2024-25 amounts.
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 particularly 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 2023-24 the City received $10,726,737, in fiscal year 2024-25 the City received $11,840,008 an increase of 10.38%.
Budget Process
Beginning with Fiscal Year 2023-24, the City has transitioned from an annual budget cycle to a biennial budget process, developing and adopting two consecutive and discrete 12 month budgets in a consolidated process. FY 2024-25 represents year 2 of the first biennial budget cycle.
In doing so, the City’s main objectives were to streamline the budget development process as well as align this with long-term financial planning. With a biennial budget process the City is able to examine budgetary decisions with a longer-term view. Additionally, incorporated as part its biennial budget process is the update of its 10-year financial forecast for its principal funds. As was included in the regular one year budget process, staff present two mid-year reviews (Year 1 and Year 2) examining progress and adjustments of revenues and expenses for the current year underway, and one mid-cycle process, examining any significant budgetary adjustments needed for the second year.
The City’s operating budget and five-year capital improvement plan is adopted in the biennial budget cycle 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 winter 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.
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 prepare and present 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 City Council resolution.
-v-
Long-term Financial Planning
The City has adopted a fund balance policy, most recently updated June 2024, in compliance with GASB Statement No. 54, which sets the goal of maintaining the General Fund unrestricted balance in an amount equal to forty percent (40%) of General Fund expenditures. 15% 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. Additionally, as the City reviewed and updated its existing fund balance policy in June of 2024, it also identified and established reserves for future larger capital and/or operating expenses, such as insurance premiums/claims, fleet replacement, fire equipment, unfunded pension liability, and larger public facilities projects. This additional level of reserves provides the City with a strategy and opportunity to establish reserves as savings for anticipated larger expenditures, which cannot readily be funded in one single year.
During the City’s budget process, the City’s engineering staff takes a five-year capital project budget to City Council for adoption. For FY2024-25 within the five-year capital project budget there were a total of 27 projects identified with requested funding totaling $15,577,212, from various sources. These 27 projects consist of four transportation projects, two traffic signal projects, three street improvement projects, three pavement management projects, three drainage projects, two technology infrastructure, six 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. During FY2024-25 a total of 13 capital improvement projects were completed including facilities, park, trails, recreation, street improvements, and transportation projects. The City’s largest transportation project to date, the Holland Road Overpass Project, a $35 million infrastructure investment to support much needed traffic mitigation efforts was substantially completed and operationally functional during FY2024-25. In May 2025, the City formally awarded a construction contract for the Bradley Bridge over Salt Creek project, initiating construction on another one of the City’s key transportation projects.
These projects are vital to alleviate traffic congestion and improve safety, and the City continues to aggressively seek various methods of funding and is also looking into local, regional and state collaborations. Some notable projects completed during the FY2024-25 period include various improvements to the Kay Ceniceros Senior Center (parking lot, display sign etc), the Quail Valley Streetlights which installed solar powered streetlights along the Quail Valley grid area to complement existing streetlight corridors to illuminate mailbox clusters and to improve poorly lit intersections which do not have existing or adequate streetlighting, the Romoland/3rd Street Improvements Project, identified as part of the existing Active Transportation Plan (ATP), and the Bradley Rd Widening at Paloma Valley High School project which significantly improved safety for students.
User fees and development impact fees are collected under the updated fee schedules effective January 1, 2023 and July 1, 2023, respectively. The City conducted a comprehensive citywide user fee study and development impact fee (DIF) study update during FY2021-22 and formally updated a new fee schedule on October 5, 2022, with an effective date of January 1, 2023. The user fee study examined all existing fees for service and provided 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 are imposed on new construction and bring much needed financial relief to the City by expanding current and future roadways and constructing new public facilities. The implementation date of any new fees related to the 2022 DIF Study Update were presented for City Council consideration and adopted on November 16, 2022. The updated DIF -vi-
fees schedule was effective July 1, 2023, with a five-year phase-in for commercial/retail and office development.
In April 2015 the City adopted its first city-wide Community Facility District (CFD) for facility maintenance. This city-wide CFD provides maintenance services such as street lighting, street sweeping, landscape maintenance and storm drainage maintenance to those residential and commercial projects that annex into the maintenance CFD. This maintenance CFD will assess only new construction to help minimize the fiscal impact that expanding development imposes on the City. The formation of the new CFDs will allow the City to continue to provide quality services that our residents and community expect, and the level of services that make the City of Menifee one of the premier cities in Riverside County.
Lastly, during FY2024-25 the City continued its efforts on a new enterprise resource planning system (ERP) to replace the existing system. The overarching goals of this system conversion are to streamline business processes, improve data accuracy, enhance operational efficiency, and gain a unified view of all critical business functions across departments by centralizing data in a single system. In the implementation of the project, the City has established an executive steering committee, core team, and included other departments in the phased-in implementation of the new ERP. The City successfully went live with the financials component of the new ERP in July 2024, including closing of FY2024-25 as its second year using the new system. Efforts for the human resources and payroll components of the ERP project will continue through FY2025- 26, with a target go live date in the first half of calendar year 2026.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) of the United States and Canada awarded the City its Certificate of Achievement for Excellence in Financial Reporting for the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024. Since incorporation, the City has been bestowed this prestigious award every year that has been submitted. To be awarded the Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. The City believes the current ACFR continues to meet the high standards associated with the Certificate of Achievement Program and we are submitting it to GFOA to determine its eligibility for another certificate.
The City's ACFR was prepared through the combined efforts of City staff. Special recognition is due to the Finance Department. With their support and coordination, the entire department assisted in closing the books for the year and ensuring timely and accurate reporting. Credit must also be given to the Mayor and City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City's finances.
Respectfully submitted,
Armando G. Villa Travis Hickey
City Manager Chief Financial Officer
-vii-
CITY OF MENIFEE
Elected Officials
Ricky Estrada – Mayor
Bob Karwin – Councilmember
Ben Diederich – Councilmember
Dan Temple – Councilmember
Dean Deines – Councilmember
-viii-
Citizens of MenifeeCity CouncilCity AttorneyCity ManagerDeputy City ManagerCommunity ServicesCity ClerkInformation TechnologyCity Executive Office (CEO)Human ResourcesFinancePolice DepartmentAssistant City ManagerEconomic DevelopmentCommunity DevelopmentPublic Works / EngineeringFire(Contract) Commissions & Committees
CITY OF MENIFEE
Organizational Chart
Fiscal Year 2024/25
-ix-
City of Menifee Executive Staff
City of Menifee ACFR Team
Travis Hickey, Chief Financial Officer (CFO) Lauri Lockwood, Financial Analyst Margarita Cornejo, Deputy Finance Director Melissa Cortes, Principal Accountant Ann-Marie Etienne, Finance Manager Dominic Tartaglia, Principal Accountant Colin O’Connell, Accountant
-x-
FINANCIAL SECTION
THIS PAGE INTENTIONALLY LEFT BLANK
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
-1-
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 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, 2025, 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 accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( Government Auditing Standards ). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of entity 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 described in Note 1 to the financial statements during the year ended June 30, 2025, the entity adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences and No. 102, Certain Risk Disclosures. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
-3-
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 audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when 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, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion & analysis and 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 placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
-4-
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report.
The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are 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 18, 2025 on our consideration of City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 the City’s 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 City’s internal control over financial reporting and compliance.
San Bernardino, California
December 18, 2025
THIS PAGE INTENTIONALLY LEFT BLANK
-5-
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 activities of the City for the fiscal year ended June 30, 2025.
We encourage readers to consider the information presented here in conjunction with additional information beyond what we have furnished in our 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 exceeded its liabilities and deferred inflows or resources at June 30, 2025, by $639.21 million (net position). Of this amount, $146.8 million is restricted for public works, future capital projects and debt service.
• As of June 30, 2025, the City’s governmental funds reported combined ending fund balances of $250.4 million.
• At June 30, 2025, the Unassigned Fund Balance for the General Fund was $45.8 million, an additional $14.1 million was Committed for use in the event of an emergency, $5.5 million for the McCall Blvd project improvements, as well as an additional $4.8 million for the construction of a future City Hall, $2 million for future public facilities, $14.1 million was Assigned for economic uncertainty, and $19.5 million for various assignments of fund balance. Council action in 2024 set fund balance requirements at Committed of 15%, Assigned of 15% and Unassigned Fund Balance of 10% for a total required Fund Balance of 40% of budgeted operating expenditures. The ending General Fund balance as of June 30, 2025 was $106.3 million compared to the ending Fund balance of $109.6 on June 30, 2024. The decrease in fund balance from one year to the next represents the deliberate transfer of fund balance, for the purpose of consolidating previously approved appropriations associated with capital projects into the Capital Projects Fund. Excluding this deliberate transfer for future capital program expenditures, the net change in fund balance represents an increase of $16.7 million, principally driven from one time sales tax revenues and operational savings. 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 Financial 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 supplementary 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 resources with the difference between them reported as net position. Over time increases in the net position may serve 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).
-6-
The government-wide financial statements present information about the functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City include general government, engineering and public works, public safety, community development and recreation services.
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. The 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 narrower than that of the government-wide financial statements, it is useful to compare 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 impact 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 funds. 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, the Grants Fund, the TUMF Fees Fund, and the Bonded CFD Fund are considered to be major funds, and are presented in individual columns in the fund statements. Data from other non-major governmental 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.
Proprietary Funds
Proprietary funds are generally used to account for services for which the City charges customers (either outside customers, or internal units or departments of the City). Proprietary Funds provide the same type of information as shown in the Government-Wide Financial Statements: albeit in more detail. Proprietary Funds utilize the same method used by the private sector businesses: the accrual basis of accounting. The City currently does not maintain any separate proprietary funds.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statement because 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 proprietary funds. The City has one fiduciary fund – the Custodial
-7-
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 can be found in the Table of Contents under the heading Notes to Financial Statements.
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, 2025, the City of Menifee’s total net position increased 11.55% percent from $573.0 million for fiscal year ending 2024, to $639.2 million for fiscal year ending 2025. The largest portion of the City’s net position, $387.0 million or 60.54% percent, reflects its investment in capital assets (e.g. land, buildings, improvements other than buildings, equipment, infrastructure and construction in progress); less any related debt used to acquire those 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 capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. Of the remaining total, $146.8 million is restricted to specifically stipulated spending agreements originated by law, contract or other agreements with external parties.
Summary of Net Position
June 30, 2025 and 2024
2024 2025Assets:Current and other assets 234,078,170$ 279,022,907$ Restricted assets 15,499,177 32,254,089 Net pension asset - 1,109,928 Capital and intangible assets 391,954,095 417,812,155 Total assets 641,531,442 730,199,079 Deferred Outflows of Resources:OPEB related 1,282,640 1,209,695 Pension related 10,176,204 9,891,164 Deferred charges on refunding 813,951 768,732 Total deferred outflows of resources 12,272,795 11,869,591 Liabilities:Other liabilities 46,069,315 61,007,480 Long-term liabilities 33,907,137 40,205,300 Total liabilities 79,976,452 101,212,780 Deferred Inflows of Resources:OPEB related 690,003 860,014 Pension related 105,619 788,194 Total deferred inflows of resources 795,622 1,648,208 Net Position:Net investment in capital assets 366,417,603 387,004,052 Restricted 94,559,622 146,775,442 Unrestricted 112,054,938 105,428,188 Total net position573,032,163$ 639,207,682$ ActivitiesGovernmental
-8-
As shown above, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $639.2 million at June 30, 2025. 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 deferred outflows and inflows, see Notes 7 and 8 in the Basic Financial Statements section of this report.
Overall, Citywide governmental fund revenues for the fiscal year ending June 30, 2025, totaled $199.7 million. This figure compares with the prior year total of $186.6 million, a (6.99%) increase.
Total program revenues of $106.8 million were 53.48 percent of total revenues. Total general revenues of $92.9 million were 46.52 percent of total revenues.
Total related current year expenses accumulated to $133.6 million, compared with prior year expenses of $95.9 million. Public Safety expenses accounted for 38.29% of total current expenses. Engineering and Public Works expenses, which account for 19.86% of the total expenses, were used primarily for street maintenance costs and design costs. The overall largest category, General Government, includes expenses related to the management and administration of the City, such as finances, management, and legal expense services, accounting for 26.56% of total expenses.
Summary of Changes in Net Position
For the Years Ended June 30, 2025 and 2024
2024 2025RevenuesProgram revenues:Charges for services 44,218,494$ 51,158,222$ Operating grants and contributions 12,041,584 16,476,836 Capital grants and contributions 40,366,619 39,181,538 General revenues:Property taxes 33,849,512 35,297,340 Sales taxes 41,064,793 40,206,315 Other taxes 6,144,757 6,309,767 Motor vehicle in-lieu (unrestricted) 135,915 346,458 Use of money & property 8,327,212 10,318,496 Other revenues 535,387 431,604 Total revenues 186,684,273 199,726,576 ExpensesGeneral government 27,374,493 35,476,891 Public safety 44,266,879 51,131,903 Community development 8,906,681 8,916,422 Recreation services 8,634,157 9,852,490 Engineering and public works 6,075,482 26,527,280 Interest expense 622,071 1,646,071 Total expenses 95,879,763 133,551,057 Change in Net Position90,804,510 66,175,519 Net position, beginning of year, as previously reported 488,770,974 573,032,163 Restatement - correction of an error (6,543,321) - Net position, beginning of year, restated 482,227,653 573,032,163 Net position, end of year573,032,163$ 639,207,682$ ActivitiesGovernmental
-9-
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 provide 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, Expenditures, and Changes in Fund Balances shows the governmental activities fund balances for the two fiscal years ending June 30, 2025 and 2024. Governmental funds are divided into two categories consisting of major and non-major funds. During the year ending June 30, 2025, six funds were classified as major governmental funds, consisting of the General Fund, Capital Projects fund, the Development Impact Fees Fund, the Grants Fund, the TUMF Fund, and the Bonded CFD Fund.
All other funds were classified as non-major funds. A major fund is any individual fund 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, 2025 and 2024
Other Total
Development Grants TUMF Capital Projects Bonded CFD's Governmental Governmental General Impact Fees Fund Fund Fund Fund Funds Funds
Total revenues: 106,478,150 $ 15,883,053$ 4,751,231$ 11,208,327$ 2,553,163$ 25,292,460$ 20,145,231$ 186,311,615$ Total expenditures: 90,659,586 12,417,702 2,880,646 10,988,369 2,736,675 20,497,137 14,254,826 154,434,941 Revenues over (under)
expenditures 15,818,564 3,465,351 1,870,585 219,958 (183,512) 4,795,323 5,890,405 31,876,674 Total other financing
sources (uses) 3,573,984 219,088 (1,150,000) - 1,000,000 - (1,440,364) 2,202,708 Net change in fund balances 19,392,548 3,684,439 720,585 219,958 816,488 4,795,323 4,450,041 34,079,382 Fund balances, beginning, as restated 90,190,765 41,253,764 1,575,170 (1,158,298) 4,213,574 10,652,089 22,437,984 169,165,048 Fund balances, ending 109,583,313$ 44,938,203$ 2,295,755$ (938,340)$ 5,030,062$ 15,447,412$ 26,888,025$ 203,244,430$ Other Total
Development Grants TUMF Capital Projects Bonded CFD's Governmental Governmental General Impact Fees Fund Fund Fund Fund Funds Funds
Total revenues: 115,571,950 $ 17,922,179$ 4,298,013$ 524,316 $ 1,224,715$ 31,481,381$ 20,449,969$ 191,472,523$ Total expenditures: 98,850,540 270,922 1,602,758 - 27,855,832 14,565,371 10,072,503 153,217,926 Revenues over (under)
expenditures 16,721,410 17,651,257 2,695,255 524,316 (26,631,117) 16,916,010 10,377,466 38,254,597 Total other financing
sources (uses) (20,020,012) (3,989,585) (2,792,899) (1,155,549) 40,328,379 - (3,488,709) 8,881,625 Net change in fund balances (3,298,602) 13,661,672 (97,644) (631,233) 13,697,262 16,916,010 6,888,757 47,136,222 Fund balances, beginning, as restated 109,583,313 44,938,203 2,295,755 (938,340) 5,030,062 15,447,412 26,888,025 203,244,430 Fund balances, ending 106,284,711$ 58,599,875$ 2,198,111$ (1,569,573)$ 18,727,324$ 32,363,422$ 33,776,782$ 250,380,652$ Fiscal Year 2024-2025
Fiscal Year 2023-2024
As of fiscal year ending 2025, the City’s total governmental funds reported a combined ending fund balance of $250.4 million, an increase of $47,136,222 from the prior fiscal year. The General Fund, which is the chief operating fund of the City, had a fund balance of $106,284,711 as of June 30, 2025. This technically represents a decrease of $3,296,602 from June 30, 2024, $109,583,313. As referenced on the first page of the MD&A, the decrease in fund balance from one year to the next represents the deliberate transfer of fund balance, for the purpose of consolidating previously approved appropriations associated with capital projects into the Capital Projects Fund. Excluding this deliberate transfer for future capital program expenditures, the net change in fund balance represents an increase of $16.7 million. The increase in fund
-10-
balance is due primarily because of an increase in one-time sales tax revenues in Sales Tax, including Quality of Life (Measure DD) sales tax, increased property tax revenues compared to the prior year, and one-time operational savings. Lastly, investment income revenue continued to perform strongly throughout FY2024-25, as the city proactively maintained its investments efforts in a favorable interest rate environment.
As indicated in the previous table, the City’s total governmental funds ending fund balances, is $250.4 million of which $44.3 million represents unassigned fund balance, which is available for spending at the government’s discretion, less allocations as noted in Note 11. The remainder of fund balance, $206.20 million, is either non-spendable, restricted (to indicate that it be spent only for the specific purposes stipulated by constitution, 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 specific purposes but does not meet the higher criteria of restricted or committed).
General Fund Financial Highlights
As of June 30, 2025, unassigned fund balance of the General Fund is $45.8 million, with an additional $14.1 million committed by Council action for emergencies, $5.5 million for the McCall Blvd. project improvements and $4.8 million for a future City Hall; $14.1 million is assigned for economic uncertainty, $2.0 million for future public facilities, and the following assigned fund balances: $722,746 for fire safety, $1.4 for general plan update, $1.0 million for fleet replacement, $500k for insurance premiums/claims, $13.3 million for future public facilities, $764k for fire equipment, and $1.1 million for eligible technology updates (Technology surcharge).
Overall, General Fund revenues for the fiscal year ending June 30, 2025 totaled $115.6 million, compared to $106.5 million for the previous year, an increase of just over $9 million, or 8.54%. General Fund revenues can be broken down into five major categories shown below. By far, sales tax is the City’s single largest source of revenue. Sales tax revenues, including both Bradley Burns and the Quality of Life revenue have slightly decreased by 1.70%, or $699k compared to the prior year. While the City still collected just over $7 million in one-time sales tax proceeds generated from the construction of the Nova Park Battery Storage Project, on-going sales tax revenue, specifically in the Quality of Life revenues has experienced a consistent leveling throughout FY2024-25. Property tax revenue is the City’s second largest source of revenue.
Property taxes have increased 5.90% from prior year, reflecting continued appreciation in assessed values and new development. Together property tax, VLF in Lieu revenue and sales tax, including Quality of Life sales tax represented approximately 66% of the City’s total General Fund revenues in FY2024-25.
Development related fees (building, planning, fire and engineering permits and fees) increased by 3.7%, just over $500k, from the prior year as the year reflecting a mix of slight increased activity on the building permitting and engineering activities, but lower activity level on planning applications received and processed.
-11-
General Fund Budgetary Highlights
Differences between the General Fund original budget expenditures and the final adjusted budget expenditures, excluding SBITA/Lease Acquisition and transfers, were $43.3 million. The differences between the General Fund original budget revenues and the final amended budget were approximately $10.4 million and are briefly summarized as follows:
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 1109,583,313$ 109,583,313$ 109,583,313$ -$ Resources (Inflows):Taxes 64,376,049 62,933,062 71,147,589 8,214,527 Licenses and permits 10,626,420 11,323,725 11,315,032 (8,693) Intergovernmental 11,595,633 11,664,089 12,631,274 967,185 Charges for services 6,705,879 13,347,041 11,377,808 (1,969,233) Use of money and property 635,000 2,620,402 8,225,168 5,604,766 Fines and forfeitures 390,000 398,178 439,280 41,102 Miscellaneous 66,500 66,788 435,799 369,011 Transfers in 9,571,848 12,021,525 486,270 (11,535,255) SBITA/Lease acquisition - 8,881,625 8,881,625 - Amounts Available for Appropriation 213,550,642 232,839,748 234,523,158 1,683,410 Charges for Appropriation (Outflows):General government 22,775,851 24,631,612 22,765,017 1,866,595 Public safety 51,432,276 59,421,892 54,773,074 4,648,818 Community development 8,109,173 11,752,507 8,045,173 3,707,334 Parks and recreation 4,504,054 5,213,903 4,165,333 1,048,570 Engineering and public works 5,822,796 6,482,176 5,364,733 1,117,443 Debt service:Principal retirement - 464,735 464,735 - Interest and fiscal charges - 13,997 13,997 - Capital outlay 2,450,791 4,243,535 3,258,478 985,057 Transfers out 8,882,387 37,056,084 29,387,907 7,668,177 Total Charges to Appropriations 103,977,328 149,280,441 128,238,447 21,041,994 Budgetary Fund Balance, June 30 109,573,314$ 83,559,307$ 106,284,711$ 22,725,404$ Budgeted Amounts
Revenues:
While variances between years exist for the various revenue categories, the total net increase was approximately $9 million or 8.54%. The increase is largely attributable one time mitigation revenue from the Rockport Ranch project in the amount of $3.6 million to be used towards a future capital project, increased investment income $1.4 milion higher than the prior year due to an economic rebound that produced higher interest earnings on investments. A $1.4 million increase in property tax revenue resulting from a growth in assessed property values also contributed to the overall increase in revenues. Lastly, VLF revenue $942k higher than prior year, and Development Revenue (Engineering, Fire, Planning, Building & Safety) charges for service were just over $500k higher than last year.
Variance of final adjusted budget to actuals is principally attributed to one time sales tax revenue of just over $7 million, in Bradley Burns and Quality of Life, associated with the Nova Park Project development.
Interest earnings actual revenues compared to adjusted budget were an estimated $1.5 million higher, and property tax revenue was $1.3 million higher than the adjusted budget, with various secured property tax categories, such as RDA pass-thru revenues performing higher than budgeted.
Expenditures:
General Fund expenditures, net (excluding transfers) totaled $98.9 million for the fiscal year ending June 30, 2025, compared to $90.7 million for the previous year. This increase of $8.2 million was due to various increases including continued increase costs in public safety related services, just over $1 million in fire contract services, and $144k in dispatch services. Additionally, the City invested approximately $1.2 million for the purchase of just under 400 acres of open space (Menifee Hills) to be used for future recreation
-12-
opportunities. and well as increases of $2.2 million in capital program project expenditures and increases in operational costs of $1.4 million compared to FY2023-24. By the end of FY2024-25 the City had an approved workforce of 332.50 FTEs, the same as the prior year.
Previously approved capital improvement program (CIP) expenditure budgets not yet complete at year end will be rolled into the subsequent year’s budget into the Capital Projects Fund (Fund 4320), along with any operating budget carryovers within the respective funds. Budget carryovers, except for encumbrances, require City Council approval for carryover.
Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for its governmental activities as of June 30, 2025, totals $417.8 million, net of accumulated depreciation. This investment in capital assets includes land, buildings, system improvements, machinery and equipment, park facilities, roads, highways, and bridges.
Summary of Changes in Capital Assets
June 30, 2025
Balance BalanceJuly 1, 2024 Additions Deletions June 30, 2025Governmental activities:Capital assets, not being depreciated:Land 28,794,607$ 2,202,942$ -$ 30,997,549$ Right-of-way 850,800 - - 850,800 Construction in progress 75,953,720 27,316,085 (47,311,647) 55,958,158 Total capital assets, not being depreciated 105,599,127 29,519,027 (47,311,647) 87,806,507 Capital assets, being depreciated:Building and improvements 33,229,712 1,230,234 - 34,459,946 Equipment and furniture 5,698,908 439,332 - 6,138,240 Vehicles 9,140,083 862,003 (59,983) 9,942,103 Software and website design 772,239 - - 772,239 Infrastructure 381,752,807 54,033,095 - 435,785,902 Right-to-use 10,205,932 9,156,084 - 19,362,016 Total capital assets, being depreciated 440,799,681 65,720,748 (59,983) 506,460,446 Less accumulated depreciation (154,444,713) (22,070,068) 59,983 (176,454,798) Total capital assets, being depreciated, net 286,354,968 43,650,680 - 330,005,648 Governmental Activities Capital Assets, net391,954,095$ 73,169,707$ (47,311,647)$ 417,812,155$ Total capital assets increased 6.60% from prior year. During the current fiscal year, the City accepted $31.8 million in infrastructure improvements from development projects and had an additional $55.9 million in construction in progress.
During FY2024-25 the City also acquired 13 new city vehicles totaling $0.86 million for Police, City Hall, 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 and/or long-term liabilities outstanding in the amount $35.4 million.
-13-
During Fiscal Year 2011-12, the City issued $20 million 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 debt was refinanced in 2020, resulting in anticipated savings exceeding $4 million for the balance of the debt. The current outstanding balance for this project is $14,270,000.
In June of 2019 the City entered into a financing agreement 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 purchase and retrofit of approximately 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 Streetlight Retrofit Project, resulting in anticipated savings of over $400k for the balance of the debt. The current outstanding balance for this project is $4,616,365.
Other debts include the City’s liabilities arising from employee’s accrued leave, or compensated absences of $3,869,007, lease liabilities of $11,244,324, represented by various vehicle, real property, equipment leases, and subscription liabilities of $1,446,146 further detailed within Note 5- Long-Term Liabilities. During FY2024-25 some larger equipment and/or subscription leases including the tasers and body worn cameras used by the police department.
Summary of Changes in Long-Term Liabilities
June 30, 2025
Balance Balance Long- Due WithinJuly 1, 2024 Increases Decreases June 30, 2025 Term One YearTransportation Revenues 14,960,000$ -$ (690,000)$ 14,270,000$ 13,570,000$ 700,000$ COP, 20205,057,262 - (440,897) 4,616,365 4,162,187 454,178 Lease liabilities 6,001,206 7,302,719 (2,059,601) 11,244,324 9,130,512 2,113,812 Subscription liabilities 331,975 1,578,906 (464,735) 1,446,146 942,000 504,146 Compensated absences 2,627,278 1,241,729 - 3,869,007 3,095,206 773,801 Long-term liabilities total 28,977,721$ 10,123,354$ (3,655,233)$ 35,445,842$ 30,899,905$ 4,545,937$ 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
Economic Factors and Next Year's Budget
The city has experienced significant and steady increase in the City's sales tax base since fiscal year 2017- 18, with the adoption of the Quality of Life measure, and as consumers changed their spending habits during the pandemic. With this additional revenue source, the city has been able to prioritize services in the areas of public safety and infrastructure. However, over the past two years inflationary pressures continue to influence the City's financial landscape going into the upcoming fiscal year, impacting both revenues and expenditures. Inflation is driving up costs in all City funds in areas such as personnel, supplies, purchased services, and capital investments. In addition to inflation, unemployment, which has increased slightly over the past year, is expected to lead to a reduction in sales tax and other City revenues as consumers cut back on discretionary spending.
As the City continues to mature and its operations and workforce expand, rising maintenance and retirement costs will play significant impact on the City’s long-term financial stability. The City has commenced some proactive efforts beginning with FY2024-25 to help mitigate significant fluctuations in year over year pension liability, as well as setting aside reserves for other larger anticipated costs, such as fleet/fire equipment purchases and future public facilities.
-14-
On June 18, 2025, the City Council adopted the City's Fiscal Year 2025-2027 Biennial Budget. Within the adoption, next year’s budget, FY2025-26, citywide budget totaled $135 million in funding for citywide operations, including $21.1 million for capital projects. Subsequently through the Mid-Cycle budget review/adoption process, City Council adopted a revised budget in June 2024. At the Mid-Year review process tentatively scheduled for February 2026, the City Council will review the adjusted budget reflecting prior year carryovers, additional appropriations to date, and any additional recommended budget adjustments. Shortly thereafter, the City will initiate the Mid-Cycle budget review process to identify any necessary budget adjustments to the following FY2026-27 year.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Travis Hickey, Chief Financial Officer, City of Menifee, 29844 Haun Road, Menifee, CA 92586 or by telephone to (951) 672-6777. The entire ACFR is also available on the City’s website: www.cityofmenifee.us.
Basic Financial Statements
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF MENIFEE
STATEMENT OF NET POSITION
JUNE 30, 2025
The accompanying notes are an integral part of these financial statements. -15-
GovernmentalActivitiesAssets:Cash and investments 265,807,978$ Receivables:Accounts 11,056,328 Accrued interest 1,729,224 Prepaid items 424,202 Restricted assets:Cash with fiscal agent 32,254,089 Other current assets 5,175 Net pension asset 1,109,928 Capital assets, not being depreciated 87,806,507 Capital assets, depreciated, net 330,005,648 Total Assets 730,199,079 Deferred Outflows of Resources:OPEB related 1,209,695 Pension related 9,891,164 Deferred charge on refunding 768,732 Total Deferred Outflows of Resources 11,869,591 Liabilities:Accounts payable 14,430,355 Accrued liabilities 3,031,954 Accrued interest 43,433 Deposits payable 42,257,801 Unearned revenue 1,176,234 Long-term liabilities, due within one year 4,545,937 Current portion of total OPEB liability 67,703 Due beyond one year:Total OPEB liability 4,759,458 Long-term liabilities, due beyond one year 30,899,905 Total Liabilities 101,212,780 Deferred Inflows of Resources:OPEB related 860,014 Pension related 788,194 Total Deferred Inflows of Resources 1,648,208 Net Position:Net investment in capital assets 387,004,052 Restricted for:Community development projects36,451,847 Public works 108,541,142 Debt service 672,525 Net pension asset 1,109,928 Unrestricted 105,428,188 Total Net Position 639,207,682$
CITY OF MENIFEE
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
The accompanying notes are an integral part of these financial statements. -16-
Net(E xpenses)Revenues andChanges inNet PositionOperating CapitalCharges for Contributions Contributions Governmental Expenses Services and Grants and Grants ActivitiesFunctions/ProgramsGovernmental activities:General government 35,476,891$ 15,510,130$ -$ -$ (19,966,761)$ Public safety 51,131,903 17,041,967 1,027,691 - (33,062,245) Community development 8,916,422 4,711,252 1,032,604 - (3,172,566) Recreation services 9,852,490 1,017,309 158,843.00 - (8,676,338) Engineering and public w orks 26,527,280 12,877,564 14,257,698 39,181,538 39,789,520 Interest on long-term debt 1,646,071 - - - (1,646,071) Total governmental activities133,551,057$ 51,158,222$ 16,476,836$ 39,181,538$ (26,734,461) General Revenues:Taxes:Property tax, levied for general purpose 35,297,340Sales tax - Shared State revenue 40,206,315Transient occupancy tax 485,200Franchise taxes 4,838,540Other taxes 986,027Unrestricted: Vehicle license fees 346,458 Use of money and property 10,318,496 Other 431,604 Total General Revenues 92,909,980 Change in net position 66,175,519 Net PositionBeginning of year 573,032,163 End of year 639,207,682$ Program Revenues
CITY OF MENIFEE
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2025
The accompanying notes are an integral part of these financial statements. -17-
GeneralDevelopment Impact Fees Grants TUMF FeesCapital Projects (formerly non-major) Bonded CFDsTotal Non-Major Governmental FundsTotal Governmental FundsAssetsCash and investments 150,236,607$ 58,854,783$ 3,333,526$ -$ 20,197,374$ -$ 33,185,688$ 265,807,978$ Receivables:Accounts, grants and taxes 8,534,487 - 357,697 511,600 - - 1,652,544 11,056,328 Accrued interest 1,073,936 290,336 38,925 - 27,816 222,781 75,430 1,729,224 Prepaid items 283,029 - - - - - 141,173 424,202 Other current assets 5,175 - - - - - - 5,175 Due from other funds 2,048,366 - - - - - - 2,048,366 Restricted assets:Cash and investments with fiscal agents - - - - - 32,140,641 113,448 32,254,089 Total Assets 162,181,600$ 59,145,119$ 3,730,148$ 511,600$ 20,225,190$ 32,363,422$ 35,168,283$ 313,325,362$ Liabilities and Fund BalancesLiabilities:Accounts payable 10,618,489$ 545,244$ 355,378$ 32,807$ 1,497,866$ -$ 1,380,571$ 14,430,355$ Accrued liabilities 3,020,599 - 425 - - - 10,930 3,031,954 Deposits payable 42,257,801 - - - - - - 42,257,801 Unearned revenue- - 1,176,234 - - - - 1,176,234 Due to other funds - - - 2,048,366 - - - 2,048,366 Total Liabilities 55,896,889 545,244 1,532,037 2,081,173 1,497,866 - 1,391,501 62,944,710 Fund Balances:Nonspendable:Prepaid items 283,029 - - - - - 141,173 424,202 Restricted for:Community development projects - - - - - - 17,724,788 17,724,788 Engineering and public works - 58,599,875 2,198,111 - 18,727,324 32,363,422 15,379,734 127,268,466 Debt service - - - - - - 531,352 531,352 Committed to:Emergency contingency 14,187,139 - - - - - - 14,187,139 City hall 4,750,000 - - - - - - 4,750,000 McCall Blvd project improvement 5,540,317 - - - - - - 5,540,317 Public facilities 2,000,000 - - - - - - 2,000,000 Assigned to:Economic uncertainty 14,187,139 - - - - - - 14,187,139 Public facilities 13,271,085 - - - - - - 13,271,085 Unfunded liability 698,747 - - - - - - 698,747 Fleet replacement 1,000,000 - - - - - - 1,000,000 Fire safety 722,746 - - - - - - 722,746 PARSAC SIR 500,000 - - - - - - 500,000 General plan update 1,449,656 - - - - - - 1,449,656 Technology surcharge 1,105,399 - - - - - - 1,105,399 Fire equipment 764,000 - - - - - - 764,000 Unassigned (deficit)45,825,454 - - (1,569,573) - - (265) 44,255,616 Total Fund Balances 106,284,711 58,599,875 2,198,111 (1,569,573) 18,727,324 32,363,422 33,776,782 250,380,652 Resource and Fund Balances 162,181,600$ 59,145,119$ 3,730,148$ 511,600$ 20,225,190$ 32,363,422$ 35,168,283$ 313,325,362$ Total Liabilities, Deferred Inflows of Special Revenue Funds Capital Projects Funds
CITY OF MENIFEE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
The accompanying notes are an integral part of these financial statements. -18-
250,380,652$ 417,812,155 1,109,928 Certificates of Participation (14,270,000)$ Debt Agreement 2019 (4,616,365) Total OPEB liability (4,827,161) Subscriptions (1,446,146) Lease liabilities (11,244,324) Compensated absences (3,869,007) (40,273,003) (43,433) 9,891,164 1,209,695 768,732 (788,194) (860,014) 639,207,682$ Net pension asset not been included as financial resources in governmental fund activity.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 governmentalfund activity.Pension related deferred outflows of resourcesOPEB related deferred inflows of resources Fund balances of governmental funds
Net position of governmental activitiesLong-term liabilities and compensated absences that have not been included in the governmental Accrued interest payable for the current portion of interest due on bonds has not been reported inthe governmental funds.Deferredinflowsandoutflowsofresourcesnotdueandpayable,orowedandreceivable,respectively, in the current period, are not reported in the funds:OPEB related deferred outflows of resourcesPension related deferred inflows of resources
CITY OF MENIFEE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
The accompanying notes are an integral part of these financial statements. -19-
GeneralDevelopment Impact Fees Grants TUMF FeesCapital Projects (formerly non-major) Bonded CFDsTotal Non-Major Governmental FundsTotal Governmental FundsRevenues:Taxes71,147,589$ -$ -$ -$ -$ -$ -$ 71,147,589$ Licenses and permits11,315,032 - - - - - - 11,315,032 Intergovernmental12,631,274 - 4,000,748 524,316 - - 9,480,930 26,637,268 Charges for services11,377,808 - - - 128,801 - 9,567,688 21,074,297 Use of money and property8,225,168 2,577,009 297,265 - 246,089 1,383,551 1,401,351 14,130,433 Fines and forfeitures439,280 - - - - - - 439,280 Developer participation- 15,344,404 - - - - - 15,344,404 Miscellaneous435,799 766 - - - 46,125 - 482,690 Contributions from property owners - - - - 849,825 30,051,705 - 30,901,530 Total Revenues 115,571,950 17,922,179 4,298,013 524,316 1,224,715 31,481,381 20,449,969 191,472,523 Expenditures:Current:General government 22,765,017 50,000 240,160 - - 13,515,235 530,952 37,101,364 Public safety 54,773,074 220,922 259,388 - - - 161,904 55,415,288 Community development 8,045,173 - 778,280 - - - - 8,823,453 Parks and recreation 4,165,333 - 97,694 - - - 4,137,521 8,400,548 Engineering and public works 5,364,733 - - - 1,177,184 - 3,442,794 9,984,711 Capital outlay3,258,478 - 227,236 - 26,678,648 - 130,007 30,294,369 Debt service:Principal retirement 464,735 - - - - - 1,130,897 1,595,632 Interest and fiscal charges 13,997 - - - - - 538,428 552,425 Bond issuance costs - - - - - 1,050,136 - 1,050,136 Total Expenditures 98,850,540 270,922 1,602,758 - 27,855,832 14,565,371 10,072,503 153,217,926 Excess of revenues over(under) expenditures 16,721,410 17,651,257 2,695,255 524,316 (26,631,117) 16,916,010 10,377,466 38,254,597 Other Financing Sources (Uses):Transfers in 486,270 - - - 40,328,379 - 1,958,312 42,772,961 Transfers out(29,387,907) (3,989,585) (2,792,899) (1,155,549) - - (5,447,021) (42,772,961) Subscription/lease acquisition 8,881,625 - - - - - - 8,881,625 Total Other Financing Sources (Uses)(20,020,012) (3,989,585) (2,792,899) (1,155,549) 40,328,379 - (3,488,709) 8,881,625 Net Change in Fund Balances(3,298,602) 13,661,672 (97,644) (631,233) 13,697,262 16,916,010 6,888,757 47,136,222 Fund Balances (Deficit)Beginning of year 109,583,313 44,938,203 2,295,755 (938,340) - 15,447,412 31,918,087 203,244,430 Change from non-major to major - - - 5,030,062 - (5,030,062) - Beginning of year, as restated 109,583,313 44,938,203 2,295,755 (938,340) 5,030,062 15,447,412 26,888,025 203,244,430 End of year 106,284,711$ 58,599,875$ 2,198,111$ (1,569,573)$ 18,727,324$ 32,363,422$ 33,776,782$ 250,380,652$ Special Revenue Funds Capital Projects Fund
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, 2025
The accompanying notes are an integral part of these financial statements. -20-
Net change in fund balances - total governmental funds 47,136,222$ Amounts reported for governmental activities in the statement of activities aredifferent because: Capitalized expenditures30,294,369 Additional costs capitalized 9,003,259 Contributed capital assets8,630,500 Depreciation/amortization expense(22,070,068) (8,881,625) 3,655,233$ (45,219) 3,610,014 1,709 (1,241,729) (376,447) 1,303,405 (1,234,090) Change in net position of governmental activities66,175,519$ Governmentalfundsreportcapitaloutlaysasexpenditures.However,inthestatementofactivities,thecosts of those assets is allocated over their estimated useful lives and reported as depreciation andamortization expense or allocated to the appropriate functional expense. The capital and intangible assetactivity 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 currentfinancial resources and, therefore, are not reported as expenditures in governmental funds. This is thechange in compensated absences for the current period.Revenues reported as unavailable and unearned revenue in the governmental funds are recognized in thestatement of activities. These are included in the intergovernmental revenues under the modified accrualbasis of accounting in the governmental fund activity when they are measurable and available.
Cost of assets capitalized:Amortization of deferred chargesPrincipal repaymentsOPEB related net adjustmentDeferred inflows and outflows of resources not due and payable, or owed and receivable, respectively, inthe current period, are not reported in the funds:Pension related net adjustment Governmental funds report proceeds from issuance of debt and lease/SBITA acquisitions as otherfinancing sources or uses, and do not report the respective long term liabilities. For the Statement ofActivities these amounts been reclassified to long term debt in the Statement of Net Position. This is theamount for the current year:
CITY OF MENIFEE
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2025
The accompanying notes are an integral part of these financial statements. -21-
Bonded CFD Custodial FundAssets:Cash and investments 3,380,635$ Cash and investments with fiscal agents 7,477,313 Receivables:Accounts 56,696 Accrued interest 47,979 Total Assets10,962,623 Liabilities:Accounts payable 15,063 Total Liabilities15,063 Net Position:Net position restricted for other purposes 10,947,560 Total Net Position10,947,560$
CITY OF MENIFEE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
The accompanying notes are an integral part of these financial statements. -22-
Bonded CFD Custodial FundAdditions:Interest income 115,727$ Contributions from property owners 7,422,677 Total Additions 7,538,404 Deductions:Administrative expenses 136,005 Interest paid to bondholders 3,064,269 Total Deductions 3,200,274 Change in Net Position4,338,130 Net positionBeginning of year 6,609,430 End of year 10,947,560$
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-23-
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 principles, these financial statements present the City (the primary government) and its component units. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component 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 reporting 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. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the process of consolidation. 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 program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants 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 restricted 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 financial 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 recognized 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, 2025
-24-
Note 1: Summary of Significant 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 available 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 current 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 measurement 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 fiscal 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 track 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, 2025
-25-
Note 1: Summary of Significant Accounting Policies (continued)
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)
The TUMF Fees Fund – This fund tracks revenues and expenditures associated with the regional transportation mitigation fee program. These funds are generated from impact fees 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 Southern 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 supplement capital projects relating to road and bridge improvements and they are treated as grant funding.
Capital Projects Fund – This fund is used to account for the project completion of street and highways capital improvements financed through various sources including, but not limited to, developer contributions and grants.
The Bonded CFDs Fund – This fund is used to account for 6 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.
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 essentially custodial. The 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 and 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 financial 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 with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-26-
Note 1: Summary of Significant Accounting Policies (continued)
d. Assets, Liabilities and Net Position or Equity (continued)
Receivables and Payables
Activity between funds that are representative 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 funds." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 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 capitalized as a whole unit or system and not by the individual units that comprise the 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 recorded at acquisition value at the date of acquisition.
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the governmental activities column in the government-wide financial statements. In accordance with generally accepted 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 capitalized. 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 units, are depreciated/amortized using the straight-line method over the following estimated useful lives:
Assets Years $ ThresholdEquipment and furniture 2-10 5,000$ Vehicles 2-10 5,000 Software 2-10 5,000 Infrastructure 20-50 50,000
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-27-
Note 1: Summary of Significant Accounting Policies (continued)
d. Assets, Liabilities and Net Position or Equity (continued)
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 specified period of time through the use of a lease or subscription agreement. The life of the right to use asset is for the same period as the lease/subscription 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 vacation not taken is payable at the end of the cumulative time.
Sick leave is payable when an employee is unable to work because 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.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents 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.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents 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 outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-28-
Note 1: Summary of Significant Accounting Policies (continued)
d. Assets, Liabilities and Net Position or Equity (continued)
Fund Balance
In the fund financial statements, government funds report the following fund balance classification:
Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution.
Assigned include amounts that are constrained by the government’s intent to be used for specific purposes, but are neither 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 purposes in the General Fund, and deficit fund balances in any other funds.
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 unrestricted (committed, assigned, or unassigned) or any combination of those classifications. 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 considered 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 those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-29-
Note 1: Summary of Significant Accounting Policies (continued)
d. Assets, Liabilities and Net Position or Equity (continued)
Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. 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 modified 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 Riverside 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.
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.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-30-
Note 1: Summary of Significant Accounting Policies (continued)
e. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect 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 employee 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, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
g. Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are 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 certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-31-
Note 1: Summary of Significant Accounting Policies (continued)
h. Implementation of New Pronouncement
Governmental Accounting Standards Board has issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures
Governmental Accounting Standards Board has issued Statement No. 102, Certain Risk Disclosures. State and local governments face a variety of risks that could negatively affect the level of service they provide or their ability to meet obligations as they come due. Although governments are required to disclose information about their exposure to some of those risks, essential information about other risks that are prevalent among state and local governments is not routinely disclosed because it is not explicitly required.
The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.
II. STEWARDSHIP
Note 2: Stewardship, Compliance 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, expenditures may not exceed appropriations at the fund level. At fiscal year-end, all operating budget appropriations lapse.
Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General, Special Revenue and similar governmental funds. Encumbrances represent the estimated amount 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, 2025
-32-
Note 2: Stewardship, Compliance and Accountability (continued)
b. Deficit Fund Balances
The following funds present a fund balance deficit as of the year ended June 30, 2025:
Fund Fund Balance DeficitTUMF Fees (1,569,573)$ Citywide Streetsweeping (265)
Note 3: Cash and Investments
As of June 30, 2025, cash and investments were reported in the accompanying financial statements as follows:
Governmental activitiesCash and investments 265,807,978$ Cash with fiscal agent 32,254,089 Fiduciary fundsCash and investment 3,380,635 Cash with fiscal agent 7,477,313 Total Cash and Investments 308,920,015$ Cash and investments held by the City consist of the following:
Cash on hand 12,300$ Deposits with financial institutions 50,845,972 Investments 258,061,743 Total Cash and Investments 308,920,015$ 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 earned on pooled cash and investments is allocated quarterly to the various funds based on average daily cash balances.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-33-
Note 3: Cash and Investments (continued)
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 allows 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 collateral 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 Depository. 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 the 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 investment 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, 2025
-34-
Note 3: Cash and Investments (continued)
Investments Authorized by the California Government 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 proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
*Maximum*Maximum InvestmentInvestment Types *Maximum Percentage of In One Authorized by City's Investment Policy Maturity Portfolio IssuerU.S. Treasury securities 5 years None NoneFederal Agency Securities 5 years 20% NoneMunicipal 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 millionFederally insured time deposits (CDs) 5 years 20% NoneNon-negotiable certificates of deposit5 years20%NoneCertificate of deposit placement service5 years30%NoneCollateralized bank depositsN/AN/AN/ARepurchase agreements1 yearNoneNoneLocal government investment poolsN/ANoneNoneCorporate medium term notes5 years30%5%Asset/mortgage backed securities5 years20%5%Supranationals5 years30%10%Mutual funds N/A 10% None * 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 Local 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 accordance 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 investment 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 changes 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, 2025
-35-
Note 3: Cash and Investments (continued)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy does not limit investments in Federal Agency Securities and Treasury Obligations to ratings issued by nationally recognized statistical rating organizations. 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 organization. Presented below are the City’s investments and the actual rating as of fiscal year end for each investment type:
Investment Type AmountMinimum legal rating A-/A/A+ AA-/AA/AA+ Aaa (or similar) Not ratedState investment pool (LAIF) 35,914,141$ N/A -$ -$ -$ 35,914,141$ Money market funds 629,858 N/A - - 629,858 - U.S. Treasury obligations 63,955,262 N/A - 63,955,262 - - Federal agency securities 19,603,446 N/A - 19,603,446 - - Agency/mortgage backed securities 5,444,403 N/A - 2,188,201 3,256,202 - U.S. corporate medium term notes 32,891,016 N/A 14,679,052 6,842,713 - 11,369,251 Supranational 6,748,223 N/A - - - 6,748,223 Asset-backed securities 4,973,356 N/A - - 3,982,331 991,025 California asset management program (CAMP) 87,788,590 N/A - - 87,788,590 - Held by bond trustee and escrow agent:Cash with fiscal agents 113,448 N/A - - - 113,448 Total investments 258,061,743$ 14,679,052$ 92,589,622$ 95,656,981$ 55,136,088$ 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 able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside 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. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
As of June 30, 2025, the City held deposits with financial institutions in excess of Federal Depository Insurance Corporation (FDIC) limits. 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, 2025
-36-
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 requires a separate disclosure if any single issuer comprises more than 5% of the total investment value. At June 30, 2025, the City’s had no single issuer of more than 5%. Investments 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 market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.
As of June 30, 2025, the City had the following investments and remaining maturities:
1 year 1 year 3 years Fair or less to 3 years to 5 years ValueState investment pool (LAIF) 35,914,141$ -$ -$ 35,914,141$ Money market funds629,858 - - 629,858 U.S. Treasury obligations10,342,676 18,492,489 35,120,097 63,955,262 Federal agency securities5,816,996 10,960,128 2,826,322 19,603,446 Agency/mortgage backed securities296,690 509,231 4,638,482 5,444,403 U.S. corporate medium term notes609,966 7,563,522 24,717,528 32,891,016 Supranational147,155 - 6,601,068 6,748,223 Asset-backed securities5,800 61,756 4,905,800 4,973,356 California asset management program (CAMP)87,788,590 - - 87,788,590 Held by bond trustee and escrow agent:Cash with fiscal agents 113,448 - - 113,448 Total investments 141,665,320$ 37,587,126$ 78,809,297$ 258,061,743$ Investments MaturitiesInvestment Type Fair Value Measurements
Generally accepted accounting principles, establishes 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 that a government can access at the measurement date, Level 2 inputs that are observable for an asset or liability, 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 assets 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, 2025
-37-
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, 2025:
Investments by Fair Value Hierarchy Total Level 1 Level 2 Level 3U.S. Treasury obligations 63,955,262$ -$ 63,955,262$ -$ Federal agency securities 19,603,446 - 19,603,446 - Agency/mortgage backed securities 5,444,403 - 5,444,403 - U.S. corporate medium term notes 32,891,016 - 32,891,016 - Supranational 6,748,223 - 6,748,223 - Asset-backed securities 4,973,356 - 4,973,356 - Total Investments by Fair Value Hierarchy 133,615,706 -$ 133,615,706$ -$ Investments outside the Fair Value HierarchyState investment pool (LAIF) 35,914,141 California asset management program (CAMP) 87,788,590 Money market funds 629,858 Held by bond trustee and escrow agent:Cash with fiscal agents 113,448 Total Investments 258,061,743$
The remainder of this page left intentionally blank
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-38-
Note 4: Capital Assets
Capital asset activity for the year ended June 30, 2025, was as follows:
Beginning Deletions/ EndingBalance Additions Adjustments BalanceGovernmental activities:Capital assets, not being depreciated:Land 28,794,607$ 2,202,942$ -$ 30,997,549$ Right-of-w ay 850,800 - - 850,800 Construction in progress 75,953,720 27,316,085 (47,311,647) 55,958,158 Total capital assets, not being depreciated 105,599,127 29,519,027 (47,311,647) 87,806,507 Capital assets, being depreciated/amortized:Building and improvements 33,229,712 1,230,234 - 34,459,946 Equipment and furniture 5,698,908 439,332 - 6,138,240 Vehicles 9,140,083 862,003 (59,983) 9,942,103 Softw are and w ebsite design 772,239 - - 772,239 Infrastructure 381,752,807 54,033,095 - 435,785,902 Right-to-useLand - 534,515 - 534,515 Buildings 8,442,223 381,374 - 8,823,597 Vehicles and equipment 912,450 6,551,940 - 7,464,390 Subscriptions 851,259 1,688,255 - 2,539,514 Total capital assets, being depreciated/amortized 440,799,681 65,720,748 (59,983) 506,460,446 Less accumulated depreciation/amortization:Building and improvements (9,243,217) (1,559,472) - (10,802,689) Equipment and furniture (3,129,005) (506,107) - (3,635,112) Vehicles (5,067,744) (1,175,274) 59,983 (6,183,035) Softw are and w ebsite design (590,098) (32,622) - (622,720) Infrastructure (132,026,135) (16,364,154) - (148,390,289) Right-to-useLand - (232,818) - (232,818) Buildings (3,557,380) (1,190,126) - (4,747,506) Vehicles and equipment (381,086) (393,688) - (774,774) Subscriptions (450,048) (615,807) - (1,065,855) Total accumulated depreciation/amortization (154,444,713) (22,070,068) 59,983 (176,454,798) Total capital assets, being depreciated/amortized, net 286,354,968 43,650,680 - 330,005,648 Governmental activities capital assets, net391,954,095$ 73,169,707$ (47,311,647)$ 417,812,155$ Depreciation/amortization expense was charged to the following functions in the statement of activities:
Governmental Activities:General government 810,079$ Public safety 3,382,846 Parks and recreation 1,572,623 Engineering and public w orks 16,304,520 Total Depreciation/Amortization Expense - Governmental Activities 22,070,068$
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-39-
Note 5: Long-Term Liabilities
The following is a schedule of changes in long-term liabilities for the fiscal year ended June 30, 2025:
Beginning E nding Due WithinBalance Additions Deductions Balance One YearLong-term liabilitiesSeries 2020 (TRIP) 14,960,000$ -$ (690,000)$ 14,270,000$ 700,000$ Direct Borrow ings:Distribution FacilitiesFinancing Agreement 5,057,262 - (440,897) 4,616,365 454,178 Lease liabilities 6,001,206 7,302,719 (2,059,601) 11,244,324 2,113,812 Subscription liabilities331,975 1,578,906 (464,735) 1,446,146 504,146 Other long-term liability: Compensated absences* 2,627,278 1,241,729 - 3,869,007 773,801 Total long-term debt 28,977,721$ 10,123,354$ (3,655,233)$ 35,445,842$ 4,545,937$ *Net change is show nCertificates of Participation, Transportation Revenue Certificates of Participation Bonds, Series 2020
The 2020 Certificates of Participation Bonds were issued to refund the 2012B Certificate of Participation Bonds for $16,990,000. The bonds 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 December 1 and June 1. This transaction resulted in an economic gain of $1.8 million and a net savings in debt service costs of $4.3 million.
Assets irrevocably pledged as collateral for the bonded debt are all of the revenues and all money in the Pledged Tax Fund (the "Gas Tax Account" and the "Measure A Receipts Account”) and in the funds or accounts so specified and provided for in the 2020 Installment Sale Agreement.
In the event of default the Trustee may, by notice in writing to the City, declare the entire principal amount of the unpaid 2020 Installment Sale Payments and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable.
The annual debt service requirements on these bonds are as follows:
Year EndingJune 30 Principal Interest Total2026700,000$ 383,166$ 1,083,166$ 2027710,000 373,352 1,083,352 2028720,000 361,978 1,081,978 2029730,000 348,141 1,078,141 2030745,000 333,423 1,078,423 2031-20353,995,000 1,399,545 5,394,545 2036-20404,615,000 790,557 5,405,557 2041-20422,055,000 100,378 2,155,378 Totals 14,270,000$ 4,090,540$ 18,360,540$ Certificates of Participation, Series 2020 TRIP
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-40-
Note 5: Long-Term Liabilities (continued)
Distribution Facilities Financing Agreement – Direct borrowing:
On July 6, 2018, the City entered into a financing agreement to purchase Certain Southern California Edison Company Street Light Facilities. The agreement calls for the conveyance and sale of 6,310 LS-1 electric streetlights facilities. 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 $400,738 over the term of the agreement with an annual average cash flow savings of approximately $30,826.
In the event of default, the lessor may, by notice in writing to the City, declare the entire principal amount of the unpaid Agreement and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable.
The annual debt service requirements on this borrowing is as follows:
Year EndingJune 30 Principal Interest Total2026454,178$ 134,660$ 588,838$ 2027467,860 120,978 588,838 2028481,953 106,885 588,838 2029496,471 92,366 588,837 2030511,427 77,411 588,838 2031-20342,204,476 150,873 2,355,349 Totals 4,616,365$ 683,173$ 5,299,538$ Distribution Facilities Financing Agreement Lease Liabilities
The City has entered into 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 leases (as the lessee) for various buildings. The lease terms range from 33 to 86 months. Monthly fixed payments range from $1,352 to $47,760 with interest rates ranging from 0.308% to 2.287%.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-41-
Note 5: Long-Term Liabilities (continued)
Future payments on the total lease liabilities are as follows.
Year EndingJune 30 Principal Interest Total20262,113,812$ 111,485$ 2,225,297$ 20272,100,064 202,503 2,302,567 20282,093,897 169,210 2,263,107 20291,212,286 138,761 1,351,047 2030614,754 118,123 732,877 2031-20353,109,511 305,654 3,415,165 Totals 11,244,324$ 1,045,736$ 12,290,060$ Leases See note 4 for the net book value of right-to-use assets acquired through leases.
Subscription Liabilities
The City has entered into subscriptions for the use of various software packages. The terms range from 18 to 58 months. Annual fixed payments range from $7,020 to $136,207 with interest rates ranging from 2.0237% to 2.3657%.
Future payments on the total lease liabilities are as follows.
Year EndingJune 30 Principal Interest Total2026504,146$ 36,675$ 540,821$ 2027505,811 23,790 529,601 2028215,816 11,576 227,392 2029220,373 5,869 226,242 Totals 1,446,146$ 77,910$ 1,524,056$ 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 has been accrued and amounts to $3,869,007 as of June 30, 2025. These liabilities have been described in Note 1.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-42-
Note 6: Interfund Receivable, Payable and Transfers
Due to/from other funds balances as of June 30, 2025 were as follows:
Funds TotalDue From Other Funds:Due to General FundTUMF Fund 2,048,366$ Total 2,048,366$ These represent borrowings from other governmental funds to cover temporary cash deficit.
Transfers in and out for the year ended June 30, 2025 were as follows:
Transfers in Transfers out AmountGeneral Fund Grants Fund (a) 150,000$ Nonmajor Governmental Funds (b) 336,270 Nonmajor Governmental Funds General Fund(e)29,387,907 Development Impact Fees(c)3,989,585 Grants Fund (c) 2,642,899 Nonmajor Governmental Funds (d) 5,110,751 TUMF Fees Fund (c) 1,155,549 Total transfers 42,772,961$ (a) To fund police salaries and benefits(b) To repay the fund for Fleet Services(c) To fund various CIP projects(d) To fund the debt service payments, Citywide CFD transfers and CIP projects(e) To fund CIP projects, the purchase of ROW land, and to cover utility costs for LLMD funds
Note 7: Defined Benefit Pension Plan
General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ 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 accounting 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 miscellaneous 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, 2025
-43-
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 must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits.
All members are eligible for non-duty disability benefits after 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 legislature and in some cases require approval by the CalPERS Board.
The Plans’ provisions and benefits in effect as of June 30, 2025 are summarized as follows:
SafetyHire datePrior to January 1, 2013On or after January 1, 2013On or after January 1, 2013Benefit formula 2.7% @ 55 2% @ 62 2.7% @ 57Benefit vesting schedule 5 years service 5 years service 5 years serviceBenefit payments monthly for life monthly for life monthly for lifeRetirement age 50 - 67 52 - 67 50 - 57Monthly 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% 8.25% 14.50%Required employer contribution rates 16.94% 8.18% 14.72%Miscellaneous
Contributions
Section 20814(c) of the California Public Employees’ 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 estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2025 were $4,604,663.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-44-
Note 7: Pension Plan (continued)
Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:
Valuation Date June 30, 2023Measurement Date June 30, 2024Actuarial Cost MethodEntry Age Actuarial Cost MethodAsset Valuation Method Fair value of assetsActuarial Assumptions: Discount Rate 6.90%Inflation 2.30%Salary Increase Varies by Entry Age and ServiceMortality Rate Table (1)Derived using CalPERS' membership data for all fundsPost 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 w as developed based on CalPERS-specific data. The rates incorporateGenerational Mortality to capture ongoing mortality improvement using 80% of Scale MP-2020 published bythe Society of Actuaries. For more details, please refer to the 2021 experience study report fromNovember 2021 that can be found on the CalPERS w ebsite.
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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-45-
Note 7: Pension Plan (continued)
Net Pension Liability (continued)
The expected real rates of return by asset class are as follows:
Asset ClassAssumed Asset Allocation Real Return 1,2Global 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 securities 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 2021-22 Asset Liability Management study.
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 discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-46-
Note 7: Pension Plan (continued)
Net Pension Liability (continued)
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available 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 recognized 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 City’s proportionate share of the Plan’s 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: 6/30/2023 (VD) 26,716,025$ 25,554,933$ 1,161,092$ Balance at: 6/30/2024 (MD) 35,478,083 36,588,011 (1,109,928) Net changes during 2023-24 8,762,058$ 11,033,078$ (2,271,020)$ Increase (Decrease) Valuation Date (VD), Measurement Date (MD).
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 City’s proportionate share of the net pension liability for the Plan as of the June 30, 2023 and 2024 measurement dates was as follows:
Proportion - June 30, 2023 0.00931%Proportion - June 30, 2024 0.00915%Change - Increase (Decrease) (0.00016%)
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-47-
Note 7: Pension Plan (continued)
Proportionate Share of Net Pension Liability (continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability (asset) 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 percentage-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) 2,865,387$ (825,891)$ (3,864,357)$ Safety Plan's Net Pension Liability (Asset) 825,584 (284,037) (1,191,551) Amortization of Deferred Outflows and Deferred Inflows of Resources
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 earnings5 year straight-line amortizationAll other amounts Straight-line amortization over the average expectedremaining services lives of all members that areprovided with benefits (active, inactive and retired) asof the beginning of the measurement period
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-48-
Note 7: Pension Plan (continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2023), the City’s net pension liability/(asset) was $1,161,092. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $3,301,258.
As of June 30, 2025, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows of ResourcesDeferred Inflows of ResourcesChanges of Assumptions -$ 28,225$ Differences between expected and actual experience 3,540 94,586 Differences between Projected and Actual Investment Earnings - 61,275 Differences between Employer's Contributionsand Proportionate Share of Contributions 4,762,442 - Change in Employer's Proportion 520,519 604,108 Pension Contributions Made Subsequent toMeasurement Date - Total 9,891,164$ 788,194$ 4,604,663 The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $4,604,663 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Fiscal Year Ended June 30:Deferred Outflows/(Inflows) of Resources, Net2026 2,233,014$ 2027 1,459,788 2028 784,515 2029 20,991 2030 - Thereafter - Payable to the Pension Plan
At June 30, 2025, the City reported a payable of $801,019 for the outstanding amount of contributions to the pension plan required for the year then ended.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-49-
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 are 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, 2024 measurement date, the following current and former employees were covered by the benefit terms under the HC Plan:
Active employees 280 Inactive employees or beneficiaries currently receiving benefits 4 Total 284 Contributions
The HC Plan and its contribution requirements 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, 2025, the City’s cash contributions were $9,766 in payments for benefits.
Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2024 and was calculated based on the following actuarial methods and assumptions from the valuation dated June 30, 2023:
Discount Rate 3.93%Inflation 2.50%Salary Increases 2.75% per yearInvestment Rate of Return 3.93%Mortality Rate 2021 CalPERS Mortality for Miscellaneous and Schools Employees, and Safety Employees, respectivelyPre-Retirement Turnover Healthcare Trend Rate 4.0% per yearActuarial Assumptions:
Discount Rate
The discount rate used to measure the total OPEB liability was 3.93% percent.
Change of Assumptions
The discount rate changed from 3.65% to 3.93% for the measurement date June 30, 2024.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-50-
Note 8: Other Post-Employment Benefits (continued)
Changes in Total OPEB Liability
The changes in the total OPEB liability for the HC Plan are as follows:
Total OPEB LiabilityBalance at June 30, 2024(Measurement Date June 30, 2023) 3,836,027$ Changes recognized for the measurement period:Service Cost 1,110,072 Interest 159,256 Changes of assumptions (222,443) Experience (gains)/losses 4,021 Benefit payments (59,772) Net Changes991,134 Balance at June 30, 2025(Measurement Date June 30, 2024) 4,827,161$ 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, 2024:
1% Decrease (2.93%)Current Discount Rate (3.93%)1% Increase (4.93%)Total OPEB Liability 5,672,637$ 4,827,161$ 4,149,895$ 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, 2024:
1% DecreaseCurrent Healthcare Cost Trend Rates 1% IncreaseTotal OPEB Liability 3,832,688$ 4,827,161$ 6,142,133$ OPEB Plan Fiduciary Net Position
The City is not prefunding with an OPEB trust. Plan Fiduciary Net Position was $0 at June 30, 2025. The City does not have assets accumulated in a trust that meets the criteria of GASB 75 to pay related benefits.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-51-
Note 8: Other Post-Employment Benefits (continued)
Recognition of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to changes in total OPEB liability and 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 future OPEB expense. The City determined that it was not reasonable to rerun prior valuations under GASB 75. Therefore, the transition approach was used as provided in GASB 75, Paragraph 244. This means that there are no deferred inflows/outflows in the first year of implementation 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, 2025, the City recognized OPEB expense of $1,294,243.
The City reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred DeferredOutflows Inflowsof Resources of ResourcesOPEB contributions subsequent to measurement date 9,766$ -$ Changes of assumptions 659,545 859,067 Differences between expectedand actual experience 540,384 947 Total 1,209,695$ 860,014$ The $9,766 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in future OPEB expense as follows:
Fiscal Year Ended June 30:Deferred Outflows/(Inflows) of Resources2026 24,915$ 2027 24,915 2028 24,915 2029 24,915 2030 24,915 Thereafter: 215,340
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-52-
Note 9: Risk Management
The City of Menifee (“City”) is exposed to various risks of loss related 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 powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers’ compensation, and property claims. Under the General Liability program, the «Type» has a «Liability_Retention» retention limit similar to a deductible, with the Authority being responsible for losses above that amount up to $1 million. The 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 estimated. Liabilities include an amount for claims that have been incurred but not reported (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 amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims.
Estimated recoveries, for example, from salvage or subrogation, are another component of the claims liability estimate.
The Authority covers workers’ compensation claims up to its self-insurance limit of $500,000.
The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. Financial statements of CIRA may be obtained from 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 collected for a period of ten years with a not-to- exceed amount of $1,000,000. For the fiscal year ended June 30, 2025, the City abated certain taxes totaling $176,783 under this program. The developer has covenanted to operating the business within the City continuously over the period of the agreement.
Note 11: Commitments and Contingencies
Litigation
The City is involved as a defendant in various legal proceedings. While it is not feasible to predict or determine the outcome in these cases, it is the opinion of the City that the outcome will have no material adverse effect on the financial position of the City.
CITY OF MENIFEE
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-53-
Note 11: Commitments and Contingencies (continued)
Grants
The City has received State and Federal funds for specific purposes that are subject to audit by the grantor agencies. Although such audits could generate expenditure disallowances under the terms of the grants, it is believed that any required reimbursements will not be material.
Construction Commitments
No material construction commitments existed as of June 30, 2025.
Additional Allocations of Fund Balance
The City has various other allocations for the General Fund unassigned fund balance, which is further detailed below to show the total funds available as of June 30, 2025.
Purpose AmountInternal Service Operations 6,453,594$ Encumbered Items 3,417,281 Cash flow - 10% minimum 9,458,093 Unallocated 26,496,486 Total Unassigned Fund Balance 45,825,454$
Note 12: Commitments and Contingencies (continued)
Per GASB 100, the City is required to restate its June 30, 2024 governmental funds’ fund balance. The Capital Projects fund was previously reported as non-major fund, and qualified as major for the year ending June 30, 2025. This qualifies as a change to or within the financial reporting entity, under the guidance of GASB 100.
Capital ProjectsTotal Non-Major Governmental FundsFund balance, as previously reported $ 5,030,062 $ 31,918,087 Change from non-major to major (5,030,062) (5,030,062)Fund balance, as restated $ - $ 26,888,025
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-54-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 1109,583,313$ 109,583,313$ 109,583,313$ -$ Resources (Inflows):Taxes 64,376,049 62,933,062 71,147,589 8,214,527 Licenses and permits 10,626,420 11,323,725 11,315,032 (8,693) Intergovernmental 11,595,633 11,664,089 12,631,274 967,185 Charges for services 6,705,879 13,347,041 11,377,808 (1,969,233) Use of money and property 635,000 2,620,402 8,225,168 5,604,766 Fines and forfeitures 390,000 398,178 439,280 41,102 Miscellaneous 66,500 66,788 435,799 369,011 Transfers in 9,571,848 12,021,525 486,270 (11,535,255) SBITA/Lease acquisition - 8,881,625 8,881,625 - Amounts Available for Appropriation 213,550,642 232,839,748 234,523,158 1,683,410 Charges for Appropriation (Outflows):General government 22,775,851 24,631,612 22,765,017 1,866,595 Public safety 51,432,276 59,421,892 54,773,074 4,648,818 Community development 8,109,173 11,752,507 8,045,173 3,707,334 Parks and recreation 4,504,054 5,213,903 4,165,333 1,048,570 Engineering and public works 5,822,796 6,482,176 5,364,733 1,117,443 Debt service:Principal retirement - 464,735 464,735 - Interest and fiscal charges - 13,997 13,997 - Capital outlay 2,450,791 4,243,535 3,258,478 985,057 Transfers out 8,882,387 37,056,084 29,387,907 7,668,177 Total Charges to Appropriations 103,977,328 149,280,441 128,238,447 21,041,994 Budgetary Fund Balance, June 30 109,573,314$ 83,559,307$ 106,284,711$ 22,725,404$ Budgeted Amounts
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEES – SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-55-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 144,938,203$ 44,938,203$ 44,938,203$ -$ Resources (Inflows):Use of money and property 208,400 488,041 2,577,009 2,088,968 Developer participation 7,494,045 7,643,717 15,344,404 7,700,687 Miscellaneous - - 766 766 Amounts Available for Appropriation 52,640,648 53,069,961 62,860,382 9,790,421 Charges for Appropriation (Outflows):General government 50,000 50,000 50,000 - Public safety 204,930 204,930 220,922 (15,992) Capital outlay 5,816,731 218,528 - 218,528 Transfer out - 21,325,358 3,989,585 17,335,773 Total Charges to Appropriations 6,071,661 21,798,816 4,260,507 17,538,309 Budgetary Fund Balance, June 30 46,568,987$ 31,271,145$ 58,599,875$ 27,328,730$ Budgeted Amounts
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GRANT FUNDS – SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-56-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 12,295,755$ 2,295,755$ 2,295,755$ -$ Resources (Inflows):Intergovernmental 677,847 23,964,286 4,000,748 (19,963,538) Use of money and property - 38,287 297,265 258,978 Amounts Available for Appropriation2,973,602 26,298,328 6,593,768 (19,704,560) Charges for Appropriation (Outflows):General government - 336,488 240,160 96,328 Public safety - 387,715 259,388 128,327 Community development 304,784 1,060,112 778,280 281,832 Parks and recreation - 549,194 97,694 451,500 Capital outlay 223,063 1,200,584 227,236 973,348 Transfers out 150,000 2,960,307 2,792,899 167,408 Total Charges to Appropriations 677,847 6,494,400 4,395,657 2,098,743 Budgetary Fund Balance, June 30 2,295,755$ 19,803,928$ 2,198,111$ (17,605,817)$ Budgeted Amounts
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
TUMF FEES FUND – SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-57-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance (Deficit), July 1(938,340)$ (938,340)$ (938,340)$ -$ Resources (Inflows):Intergovernmental - 10,213,818 524,316 (9,689,502) Amounts Available for Appropriation(938,340) 9,275,478 (414,024) (9,689,502) Charges for Appropriation (Outflows)Transfers out - 6,321,254 1,155,549 5,165,705 Total Charges to Appropriations - 6,321,254 1,155,549 5,165,705 Budgetary Fund Balance (Deficit), June 30 (938,340)$ 2,954,224$ (1,569,573)$ (4,523,797)$ Budgeted Amounts
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE PENSION PLAN’S NET PENSION
LIABILITY AND RELATED RATIOS AS OF THE MEASUREMENT DATE
LAST TEN YEARS
-58-
Measurement DateEmployer's Proportion of the Collective Net Pension Liability1Employer's Proportionate Share of the Collective Net Pension Liability/(Asset)Employer's Covered PayrollEmployer's Proportionate Share of the Collective Net Pension Liability as a Percentage of the Employer's Covered PayrollPension's Plans Fiduciary Net Position as a Percentage of the Total Pension Liability6/30/2015 0.00368% 252,740$ 3,376,969$ 7.48% 78.40%6/30/2016 0.00420% 363,319 4,222,698 8.60% 74.06%6/30/2017 0.00556% 551,431 4,350,553 12.67% 73.31%6/30/2018 0.00519% 499,769 5,130,794 9.74% 75.26%6/30/2019 0.00023% 23,598 6,773,265 0.35% 75.26%6/30/2020 0.00236% 256,708 10,202,569 2.52% 75.10%6/30/2021-0.03945%(2,133,291) 17,087,839 -12.48%88.29%6/30/20220.00122%141,043 20,641,512 0.68%76.68%6/30/20230.00931%1,161,092 25,329,014 4.58%76.21%6/30/2024-0.00915%(1,109,928) 28,066,270 -3.95%78.08%both the Miscellaneous and Safety Risk pools excluding the 1959 Survivors Risk Pool.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
-59-
Fiscal YearActuarially Determined ContributionsContributions in Relation to the Actuarially Determined ContributionsContribution Deficiency (Excess)Employer's Covered PayrollContributions as a Percentage of Covered Payroll6/30/2016 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%6/30/2024 3,709,952 (5,881,952) (2,172,000) 28,066,270 20.96%6/30/2025 3,836,388 (4,604,663) (768,275) 29,893,065 15.40%Notes to Schedule:Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the PublicAgency Pool. However, individual employers in the Plan may have provided a benefit improvement to theiremployees such as Golden Handshakes, service purchases, and other prior service costs. Employers thathave done so may need to report this information as a separate liability in their financial statement asCalPERS considers such amounts to be separately financed employer-specific liabilities. These employersshould consult with their auditors. Additionally, the figures above do not include any liability impact thatoccurred after the June 30, 2023, valuation date, unless the liability impact is deemed to be material to thePublic Agency Pool.Change in Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30,2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-termmarket return expectations as well as the expected pension fund cash flows. In addition, demographicassumptions and the price inflation assumption were changed in accordance with the 2021 CalPERSExperience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% formeasurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30,2015, through June 30, 2016.
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN YEARS*
-60-
Measurement Period 2024 2023 2022 2021 2020Total OPEB LiabilityService Cost 1,110,072$ 670,308$ 857,974$ 606,096$ 449,840$ Interest on the Total OPEB Liability 159,256 111,120 67,079 44,239 38,328 Actual and expected experience difference 4,021 245,953 - 32,710 364,149 Changes in assumptions (222,443) 28,355 (754,285) 313,441 (1,232) Changes in benefit terms - - - - - Expected Minus Actual Benefit Payments 3,926 1,591 407 - Benefit payments (59,772) (51,020) (41,422) (16,144) (12,360) Net change in Total OPEB Liability991,134 1,008,642 130,937 980,749 838,725 Total OPEB Liability, beginning3,836,027 2,827,385 2,696,448 1,715,699 876,974 Total OPEB Liability, ending4,827,161$ 3,836,027$ 2,827,385$ 2,696,448$ 1,715,699$ 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 28,066,270$ 25,329,014$ 20,641,512$ 17,087,839$ 10,202,569$ Net OPEB liability as a percentage of covered employee payroll 17.20% 15.14% 13.70% 15.78% 16.82%Measurement Period 2019 2018Total OPEB LiabilityService Cost 71,218$ 74,816$ Interest on the Total OPEB Liability 10,868 8,305 Actual and expected experience difference 91,138 - Changes in assumptions 453,877 (13,488) Changes in benefit terms - - Expected Minus Actual Benefit Payments - - Benefit payments (775) (256) Net change in Total OPEB Liability626,326 69,377 Total OPEB Liability, beginning250,648 181,271 Total OPEB Liability, ending876,974$ 250,648$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00%Covered employee payroll 6,773,265$ 5,130,794$ Net OPEB liability as a percentage of covered employee payroll 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 benefitsBenefits 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 3.93% was used in the valuation. The discount rate used in the prior valuation was 3.65%.
CITY OF MENIFEE
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE FISCAL YEARA ENDED JUNE 30, 2025
-61-
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 and Citywide Street sweeping Fund which do not have an adopted budget.
SUPPLEMENTAL SCHEDULES
THIS PAGE INTENTIONALLY LEFT BLANK
-62-
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 public streets. Section 2107.5 funds can be used for engineering and gas tax audit costs. In addition, beginning 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 the Road Maintenance and Rehabilitation Account to address deferred maintenance on the State Highway System and the local streets and road system. A percentage of this new RMRA funding will be apportioned 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 initiative 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 Legislative 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 responsibility 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 exclusively within the City jurisdiction. This resulted in the City acquiring 24 individual LLMD zones. These LLMDs had originally been established by Riverside County prior to the City's incorporation, and maintained 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 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 street lighting, landscaping, street sweeping, water quality basin improvements, parks, trails and recreation improvements.
-63-
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 administrative costs. 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.
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 each 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 street lighting, landscaping, street sweeping, water quality basin improvements, parks, trails and recreation improvements.
CFD 2014-2 Commerce Point
In August 2014 the Commerce Point Community Facility 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.
2015-2 Citywide CFD
In April 2015 the City-Wide Community Facility District (CFD) was formed under Resolution No. 15- 430.
CFD No. 2015-2 (Maintenance Services) currently consists 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 increased 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 District (CFD) 2017-1 was formed. This CFD boundary includes approximately 104 acres of vacant commercial 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 shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%), whichever is greater, per fiscal year.
-64-
Public, Educational and Government Access
This fund will be used to acquire equipment for and broadcasting on a future City cable channel. Used to account for revenue and expenditures of money pursuant 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 established by the County of Riverside to provide a mechanism through special assessments to fund services such as street lighting, street sweeping, park maintenance, road maintenance, and law enforcement services to property owners within each district. Each CSA fund provides a unique set of services to the residents within that individual district.
Citywide Streetsweeping
This fund is used to account for expenditures related to street sweeping activities.
Maintenance CFD
On September 18, 2019, the City Council adopted Resolution 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 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, 2019, the maximum special tax for developed property shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%) per fiscal year. Specific improvements and applicable maximum special tax rates are established and applied per the corresponding Rate and Method of Apportionment (RMA) of the respective annexed tax zone.
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 the 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 anticipated 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 retrofit 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 interest savings exceeding $400k of the balance of the debt service schedule. Currently, the City has only the TRIP debt and Streetlight Retrofit Project outstanding debt accounted for in this fund.
CITY OF MENIFEE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
-65-
Gas Tax SB1 Measure AAir Quality Management DistrictAssetsCash and investments 1,539,119$ 4,060,238$ 4,757,676$ 403,860$ Receivables:Accounts, grants and taxes 400,482 536,479 552,608 - Accrued interest 1,312 4,895 12,571 - Prepaid items - - - - Restricted assets:Cash and investments with fiscal agents - - - - Total Assets 1,940,913$ 4,601,612$ 5,322,855$ 403,860$ Liabilities and Fund BalancesLiabilities:Accounts payable 327,838$ 478,137$ 4,102$ -$ Accrued liabilities 2,481 - - - Total Liabilities 330,319 478,137 4,102 - Fund Balances:Nonspendable:Prepaid items- - - - Restricted for:Community development projects - - - - Engineering and public works 1,610,594 4,123,475 5,318,753 403,860 Debt service - - - - Unassigned (deficit)- - - - Total Fund Balances 1,610,594 4,123,475 5,318,753 403,860 Total Liabilities and Fund Balances1,940,913$ 4,601,612$ 5,322,855$ 403,860$ Special Revenue Funds
CITY OF MENIFEE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (continued)
JUNE 30, 2025
-66-
Landscape and Lighting Maintenance DistrictCFD Audie Murphy Ranch CFD Hidden HillsCFD 2014-1 Town CenterCFD 2014-2 Commerce PointVeteran's Memorial3,972,667$ 5,221,497$ 964,112$ 210,998$ 91,514$ 5,043$ 28,068 19,427 303 - - - - 43,981 - 883 - - - - - - - - - - - - - - 4,000,735$ 5,284,905$ 964,415$ 211,881$ 91,514$ 5,043$ 77,040$ 206,722$ 25,807$ 6,519$ 1,254$ -$ 643 2,323 372 - 12 - 77,683 209,045 26,179 6,519 1,266 - - - - - - - - 5,075,860 938,236 205,362 90,248 5,043 3,923,052 - - - - - - - - - - - - - - - - - 3,923,052 5,075,860 938,236 205,362 90,248 5,043 4,000,735$ 5,284,905$ 964,415$ 211,881$ 91,514$ 5,043$ Special Revenue Funds
CITY OF MENIFEE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (continued)
JUNE 30, 2025
-67-
2015-2 Citywide CFD2017-1 Maintenance Services CFDPublic, Educational and Governmental AccessCounty Service AreasAssetsCash and investments 5,246,069$ 749,294$ 768,651$ 2,047,811$ Receivables:Accounts, grants and taxes 23,950 1,092 22,891 50,673 Accrued interest - - 4,529 7,259 Prepaid items - - - - Restricted assets:Cash and investments with fiscal agents - - - - Total Assets 5,270,019$ 750,386$ 796,071$ 2,105,743$ Liabilities and Fund BalancesLiabilities:Accounts payable 87,787$ 19,269$ -$ 111,318$ Accrued liabilities 2,252 39 - 1,565 Total Liabilities 90,039 19,308 - 112,883 Fund Balances:Nonspendable:Prepaid items- - - - Restricted for:Community development projects 5,179,980 731,078 796,071 1,992,860 Engineering and public works - - - - Debt service - - - - Unassigned (deficit)- - - - Total Fund Balances 5,179,980 731,078 796,071 1,992,860 Total Liabilities and Fund Balances5,270,019$ 750,386$ 796,071$ 2,105,743$ Special Revenue Funds
CITY OF MENIFEE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (concluded)
JUNE 30, 2025
-68-
Debt Service FundCitywide Streetsweeping Maintenance CFD Debt ServiceTotal Non-Major Governmental Funds-$ 2,729,235$ 417,904$ 33,185,688$ - 16,571 - 1,652,544 - - - 75,430 - - 141,173 141,173 - - 113,448 113,448 -$ 2,745,806$ 672,525$ 35,168,283$ -$ 34,778$ -$ 1,380,571$ 265 978 - 10,930 265 35,756 - 1,391,501 - - 141,173 141,173 - 2,710,050 - 17,724,788 - - - 15,379,734 - - 531,352 531,352 (265) - - (265) (265) 2,710,050 672,525 33,776,782 -$ 2,745,806$ 672,525$ 35,168,283$ Special Revenue Funds
CITY OF MENIFEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-69-
Gas Tax SB1 Measure AAir Quality Management DistrictRevenuesIntergovernmental 3,137,078$ 3,044,372$ 3,189,610$ 109,870$ Charges for services - - - - Use of money and property 58,184 149,658 245,276 13,349 Total Revenues 3,195,262 3,194,030 3,434,886 123,219 ExpendituresCurrent:General government - - - - Public safety - - - - Parks and recreation - - - - Engineering and public works 2,472,886 - - - Capital outlay 56,993 - - 29,591 Debt service:Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,529,879 - - 29,591 Excess (Deficiency) of Revenues Over (Under) Expenditures665,383 3,194,030 3,434,886 93,628 Other Financing Sources (Uses)Transfers in - - - - Transfers out (457,546) (1,789,841) (2,292,387) - Total Other Financing Sources (Uses) (457,546) (1,789,841) (2,292,387) - Net Change in Fund Balances 207,837 1,404,189 1,142,499 93,628 Fund Balances (Deficit)Beginning of year 1,402,757 2,719,286 4,176,254 310,232 Change from non-major to major - - - - Beginning of year, as restated 1,402,757 2,719,286 4,176,254 310,232 End of year 1,610,594$ 4,123,475$ 5,318,753$ 403,860$ 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, 2025
-70-
Landscape and Lighting Maintenance DistrictCFD Audie Murphy Ranch CFD Hidden HillsCFD 2014-1 Town CenterCFD 2014-2 Commerce Point Veteran's Memorial-$ -$ -$ -$ -$ -$ 895,746 2,466,173 297,682 17,844 30,296 1,275 146,966 279,535 41,038 11,338 1,985 (525) 1,042,712 2,745,708 338,720 29,182 32,281 750 51,538 12,019 9,129 1,479 2,365 - - - - - - - 788,667 1,533,514 259,520 19,975 5,504 - 62,663 111,702 - 70 7,938 - - 10,949 - - - - - - - - - - - - - - - - 902,868 1,668,184 268,649 21,524 15,807 - 139,844 1,077,524 70,071 7,658 16,474 750 85,000 - - - - - (10,197) (96,730) - - (412) - 74,803 (96,730) - - (412) - 214,647 980,794 70,071 7,658 16,062 750 3,708,405 4,095,066 868,165 197,704 74,186 4,293 - - - - - - 3,708,405 4,095,066 868,165 197,704 74,186 4,293 3,923,052$ 5,075,860$ 938,236$ 205,362$ 90,248$ 5,043$ 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, 2025
-71-
2015-2 Citywide CFD2017-1 Maintenance Services CFD Public, Educational and Governmental Access County Service AreasRevenuesIntergovernmental -$ -$ -$ -$ Charges for services 1,958,992 228,532 100,073 1,941,357 Use of money and property 151,733 12,339 37,418 110,080 Total Revenues 2,110,725 240,871 137,491 2,051,437 ExpendituresCurrent:General government 33,957 7,653 6,552 22,798 Public safety - - - 161,904 Parks and recreation 686,570 169,566 - 662,986 Engineering and public works 342,814 5,575 - 430,019 Capital outlay - - 32,474 - Debt service:Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,063,341 182,794 39,026 1,277,707 Excess (Deficiency) of Revenues Over (Under) Expenditures1,047,384 58,077 98,465 773,730 Other Financing Sources (Uses)Transfers in 113,987 - - - Transfers out (21,329) (2,472) - (662,120) Total Other Financing Sources (Uses)92,658 (2,472) - (662,120) Net Change in Fund Balances 1,140,042 55,605 98,465 111,610 Fund Balances (Deficit)Beginning of year 4,039,938 675,473 697,606 1,881,250 Change from non-major to major - - - - Beginning of year, as restated 4,039,938 675,473 697,606 1,881,250 End of year 5,179,980$ 731,078$ 796,071$ 1,992,860$ Special Revenue Funds
CITY OF MENIFEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (concluded)
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-72-
Capital Projects Fund Debt Service FundCitywide Streetsweeping Maintenance CFD Capital Projects Debt ServiceTotal Non-Major Governmental Funds-$ -$ -$ -$ 9,480,930$ - 1,629,718 - - 9,567,688 - 63,567 - 79,410 1,401,351 - 1,693,285 - 79,410 20,449,969 - 271,508 - 111,954 530,952 - - - - 161,904 - 11,219 - - 4,137,521 265 8,862 - - 3,442,794 - - - - 130,007 - - - 1,130,897 1,130,897 - - - 538,428 538,428 265 291,589 - 1,781,279 10,072,503 (265) 1,401,696 - (1,701,869) 10,377,466 - - - 1,759,325 1,958,312 - (113,987) - - (5,447,021) - (113,987) - 1,759,325 (3,488,709) (265) 1,287,709 - 57,456 6,888,757 - 1,422,341 5,030,062 615,069 31,918,087 - - (5,030,062) - (5,030,062) - 1,422,341 - 615,069 26,888,025 (265)$ 2,710,050$ -$ 672,525$ 33,776,782$ Special Revenue Funds
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
GAS TAX
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-73-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 11,402,757$ 1,402,757$ 1,402,757$ -$ Resources (Inflows):Intergovernmental 3,191,556 3,034,146 3,137,078 102,932 Use of money and property 2,000 22,064 58,184 36,120 Amounts Available for Appropriation4,596,313 4,458,967 4,598,019 139,052 Charges for Appropriation (Outflows):Engineering and public works 2,552,793 2,691,843 2,472,886 218,957 Capital outlay 207,885 149,885 56,993 92,892 Transfers out 490,876 627,764 457,546 170,218 Total Charges to Appropriations 3,251,554 3,469,492 2,987,425 482,067 Budgetary Fund Balance, June 30 1,344,759$ 989,475$ 1,610,594$ 621,119$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
SB1
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-74-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 12,719,286$ 2,719,286$ 2,719,286$ -$ Resources (Inflows):Intergovernmental 2,752,637 2,816,029 3,044,372 228,343 Use of money and property 15,000 58,631 149,658 91,027 Amounts Available for Appropriation5,486,923 5,593,946 5,913,316 319,370 Charges for Appropriation (Outflows):Capital outlay 2,774,000 - - - Transfers out - 5,135,607 1,789,841 3,345,766 Total Charges to Appropriations 2,774,000 5,135,607 1,789,841 3,345,766 Budgetary Fund Balance, June 30 2,712,923$ 458,339$ 4,123,475$ 3,665,136$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
MEASURE A
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-75-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 14,176,254$ 4,176,254$ 4,176,254$ -$ Resources (Inflows):Intergovernmental 3,169,400 3,132,000 3,189,610 57,610 Use of money and property 10,000 69,395 245,276 175,881 Amounts Available for Appropriation7,355,654 7,377,649 7,611,140 233,491 Charges for Appropriation (Outflows):Capital outlay 2,098,762 - - - Transfers out 1,080,487 6,421,936 2,292,387 4,129,549 Total Charges to Appropriations 3,179,249 6,421,936 2,292,387 4,129,549 Budgetary Fund Balance, June 30 4,176,405$ 955,713$ 5,318,753$ 4,363,040$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY MANAGEMENT DISTRICT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-76-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 1310,232$ 310,232$ 310,232$ -$ Resources (Inflows):Intergovernmental 119,775 119,775 109,870 (9,905) Use of money and property 225 6,387 13,349 6,962 Amounts Available for Appropriation430,232 436,394 433,451 (2,943) Charges for Appropriation (Outflows):Capital outlay - 147,779 29,591 118,188 Total Charges to Appropriations - 147,779 29,591 118,188 Budgetary Fund Balance, June 30 430,232$ 288,615$ 403,860$ 115,245$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-77-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 13,708,405$ 3,708,405$ 3,708,405$ -$ Resources (Inflows):Charges for services 886,004 896,400 895,746 (654) Use of money and property - 73,582 146,966 73,384 Transfers In - 85,000 85,000 - Amounts Available for Appropriation4,594,409 4,763,387 4,836,117 72,730 Charges for Appropriation (Outflows):General government 25,926 30,486 51,538 (21,052) Parks and recreation 727,353 915,946 788,667 127,279 Engineering and public works 177,224 119,946 62,663 57,283 Transfer out 10,197 10,197 10,197 - Total Charges to Appropriations 940,700 1,076,575 913,065 163,510 Budgetary Fund Balance, June 30 3,653,709$ 3,686,812$ 3,923,052$ 236,240$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – AUDIE MURPHY RANCH
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-78-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 14,095,066$ 4,095,066$ 4,095,066$ -$ Resources (Inflows):Charges for services 2,378,001 2,455,038 2,466,173 11,135 Use of money and property 18,500 65,607 279,535 213,928 Amounts Available for Appropriation6,491,567 6,615,711 6,840,774 225,063 Charges for Appropriation (Outflows):General government 10,837 12,010 12,019 (9) Parks and recreation 1,574,349 1,713,426 1,533,514 179,912 Engineering and public works 246,939 244,549 111,702 132,847 Capital outlay - 36,250 10,949 25,301 Transfers out 32,237 782,281 96,730 685,551 Total Charges to Appropriations 1,864,362 2,788,516 1,764,914 1,023,602 Budgetary Fund Balance, June 30 4,627,205$ 3,827,195$ 5,075,860$ 1,248,665$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – HIDDEN HILLS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-79-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 1868,165$ 868,165$ 868,165$ -$ Resources (Inflows):Charges for services 292,907 299,368 297,682 (1,686) Use of money and property - 18,435 41,038 22,603 Amounts Available for Appropriation1,161,072 1,185,968 1,206,885 20,917 Charges for Appropriation (Outflows):General government - - 9,129 (9,129) Parks and recreation 275,081 317,621 259,520 58,101 Engineering and public works 8,951 9,333 - 9,333 Total Charges to Appropriations 284,032 326,954 268,649 58,305 Budgetary Fund Balance, June 30 877,040$ 859,014$ 938,236$ 79,222$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2014-1 TOWN CENTER
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-80-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 1197,704$ 197,704$ 197,704$ -$ Resources (Inflows):Charges for services 17,460 17,844 17,844 - Use of money and property - 3,022 11,338 8,316 Amounts Available for Appropriation215,164 218,570 226,886 8,316 Charges for Appropriation (Outflows):General government - - 1,479 (1,479) Parks and recreation 14,431 25,221 19,975 5,246 Engineering and public works 2,600 2,600 70 2,530 Total Charges to Appropriations 17,031 27,821 21,524 6,297 Budgetary Fund Balance, June 30 198,133$ 190,749$ 205,362$ 14,613$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2014-2 COMMERCE POINT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-81-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 174,186$ 74,186$ 74,186$ -$ Resources (Inflows):Charges for services 29,630 30,296 30,296 - Use of money and property - 1,373 1,985 612 Amounts Available for Appropriation 103,816 105,855 106,467 612 Charges for Appropriation (Outflows):General government - - 2,365 (2,365) Parks and recreation 8,555 8,786 5,504 3,282 Engineering and public works 8,659 10,019 7,938 2,081 Transfer out 412 412 412 - Total Charges to Appropriations 17,626 19,217 16,219 2,998 Budgetary Fund Balance, June 30 86,190$ 86,638$ 90,248$ 3,610$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2015-2 CITYWIDE
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-82-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 14,039,938$ 4,039,938$ 4,039,938$ -$ Resources (Inflows):Charges for services 1,679,554 1,963,644 1,958,992 (4,652) Use of money and property - 73,741 151,733 77,992 Transfers in285,466 286,676 113,987 (172,689) Amounts Available for Appropriation 6,004,958 6,363,999 6,264,650 (99,349) Charges for Appropriation (Outflows):General government - - 33,957 (33,957) Parks and recreation 854,809 1,013,584 686,570 327,014 Engineering and public works 801,431 865,723 342,814 522,909 Capital outlay - 25,000 - 25,000 Transfers out 181,841 205,067 21,329 183,738 Total Charges to Appropriations 1,838,081 2,109,374 1,084,670 1,024,704 Budgetary Fund Balance, June 30 4,166,877$ 4,254,625$ 5,179,980$ 925,355$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2017-1 MAINTENANCE SERVICES FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-83-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 1 675,473$ 675,473$ 675,473$ -$ Resources (Inflows):Charges for services 243,222 233,885 228,532 (5,353) Use of money and property - 6,082 12,339 6,257 Amounts Available for Appropriation 918,695 915,440 916,344 904 Charges for Appropriation (Outflows):General government - - 7,653 (7,653) Parks and recreation 198,185 198,932 169,566 29,366 Engineering and public works 36,616 36,616 5,575 31,041 Transfers out 2,472 2,472 2,472 - Total Charges to Appropriations 237,273 238,020 185,266 52,754 Budgetary Fund Balance, June 30 681,422$ 677,420$ 731,078$ 53,658$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-84-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 1697,606$ 697,606$ 697,606$ -$ Resources (Inflows):Charges for services 135,000 135,000 100,073 (34,927) Use of money and property 5,000 7,334 37,418 30,084 Amounts Available for Appropriation 837,606 839,940 835,097 (4,843) Charges for Appropriation (Outflows):General government - - 6,552 (6,552) Capital outlay - 42,250 32,474 9,776 Total Charges to Appropriations - 42,250 39,026 3,224 Budgetary Fund Balance, June 30 837,606$ 797,690$ 796,071$ (1,619)$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
COUNTY SERVICE AREAS (CSA)
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-85-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 11,881,250$ 1,881,250$ 1,881,250$ -$ Resources (Inflows):Charges for services 1,899,576 1,914,382 1,941,357 26,975 Use of money and property 10,000 30,478 110,080 79,602 Amounts Available for Appropriation3,790,826 3,826,110 3,932,687 106,577 Charges for Appropriation (Outflows):General government 24,782 26,547 22,798 3,749 Public safety 172,256 172,256 161,904 10,352 Parks and recreation 740,332 775,598 662,986 112,612 Engineering and public works 416,921 498,810 430,019 68,791 Capital outlay 900,000 49,000 - 49,000 Transfers out 558,643 2,004,880 662,120 1,342,760 Total Charges to Appropriations 2,812,934 3,527,091 1,939,827 1,587,264 Budgetary Fund Balance, June 30 977,892$ 299,019$ 1,992,860$ 1,693,841$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
MAINTENANCE CFD
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-86-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 11,422,341$ 1,422,341$ 1,422,341$ -$ Resources (Inflows):Charges for services 999,675 1,613,967 1,629,718 15,751 Use of money and property - 32,013 63,567 31,554 Amounts Available for Appropriation2,422,016 3,068,321 3,115,626 47,305 Charges for Appropriation (Outflows):General government 600,836 660,124 271,508 388,616 Parks and recreation 39,103 43,063 11,219 31,844 Engineering and public works 65,833 65,833 8,862 56,971 Transfers out 113,925 113,987 113,987 - Total Charges to Appropriations 819,697 883,007 405,576 477,431 Budgetary Fund Balance, June 30 1,602,319$ 2,185,314$ 2,710,050$ 524,736$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
BONDED CFD – MAJOR FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-87-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 115,447,412$ 15,447,412$ 15,447,412$ -$ Resources (Inflows):Use of money and property - 739,625 1,383,551 643,926 Miscellaneous - 35,800 46,125 10,325 Contributions from property owners - 25,134,078 30,051,705 4,917,627 Amounts Available for Appropriation 15,447,412 41,356,915 46,928,793 5,571,878 Charges for Appropriation (Outflows):General government - 20,110,519 13,515,235 6,595,284 Debt service:Bond issuance costs - 554,511 1,050,136 (495,625) Total Charges to Appropriations - 20,665,030 14,565,371 6,099,659 Budgetary Fund Balance, June 30 15,447,412$ 20,691,885$ 32,363,422$ 11,671,537$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND – MAJOR FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-88-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 15,030,062$ 5,030,062$ 5,030,062$ -$ Resources (Inflows):Charges for services - 2,921,200 128,801 (2,792,399) Use of money and property - 52,533 246,089 193,556 Developer participation 258,679 258,679 - (258,679) Contributions from property owners - - 849,825 849,825 Transfers in - 66,196,015 40,328,379 (25,867,636) Amounts Available for Appropriation 5,288,741 74,458,489 46,583,156 (27,875,333) Charges for Appropriation (Outflows):Engineering and public works - 2,723,085 1,177,184 1,545,901 Capital outlay 258,679 107,004,761 26,678,648 80,326,113 Total Charges to Appropriations 258,679 109,727,846 27,855,832 81,872,014 Budgetary Fund Balance, June 30 5,030,062$ (35,269,357)$ 18,727,324$ 53,996,681$ Budgeted Amounts
CITY OF MENIFEE
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
-89-
Actual Variance withOriginal Final Amounts Final BudgetBudgetary Fund Balance, July 1615,069$ 615,069$ 615,069$ -$ Resources (Inflows):Use of money and property - 34,870 79,410 44,540 Transfers in 1,759,325 1,759,325 1,759,325 - Amounts Available for Appropriation2,374,394 2,409,264 2,453,804 44,540 Charges for Appropriation (Outflows):General government 90,000 90,000 111,954 (21,954) Debt service:Principal retirement 837,941 837,941 1,130,897 (292,956) Interest and fiscal charges 831,384 831,384 538,428 292,956 Total Charges to Appropriations 1,759,325 1,759,325 1,781,279 (21,954) Budgetary Fund Balance, June 30 615,069$ 649,939$ 672,525$ 22,586$ Budgeted Amounts
THIS PAGE INTENTIONALLY LEFT BLANK
-90-
STATISTICAL SECTION DESCRIPTIONS
This section of the City of Menifee’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.
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 information 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
LAST 10 FISCAL YEARS
-91-
As of June 30, 2016 2017 2018 2019GOVERNMENTAL ACTIVITIESNet Investment in Capital Assets 51,416,214$ 69,469,330$ 110,924,809$ 156,771,192$ Restricted for:Community Development Projects 4,448,198 4,660,916 5,363,977 6,373,715 Public Safety - - 12,472 191,737 Public Works 23,908,504 20,471,018 32,360,079 44,929,363 Capital Projects 9,619,732 4,772,166 - - Debt service 1,359,694 1,358,034 1,371,931 7,884,527 Net pension asset - - - - Unrestricted 10,903,072 14,504,934 26,052,076 30,064,613 Total Governmental ActivitiesNet Position 101,655,414$ 115,236,398$ 176,085,344$ 246,215,147$ PRIMARY GOVERNMENTNet Investment in Capital Assets 51,416,214$ 69,469,330$ 110,924,809$ 156,771,192$ Restricted for:Community Development Projects 4,448,198 4,660,916 5,363,977 6,373,715 Public Safety - - 12,472 191,737 Public Works 23,908,504 20,471,018 32,360,079 44,929,363 Capital Projects 9,619,732 4,772,166 - - Debt service 1,359,694 1,358,034 1,371,931 7,884,527 Net pension asset - - - - Unrestricted 10,903,072 14,504,934 26,052,076 30,064,613 Total Primary GovernmentNet Position 101,655,414$ 115,236,398$ 176,085,344$ 246,215,147$
Source: City Finance Department
-92-
2020 2021 2022 2023 2024 2025215,774,004$ 259,935,987$ 276,956,837$ 317,756,598$ 366,417,603$ 387,004,052$ 4,569,409 5,239,814 11,312,169 14,895,725 18,986,084 36,451,847 - - - - - - 40,108,013 49,139,697 61,290,160 64,574,642 74,958,469 108,541,142 - - - - - - 1,572,272 556,027 563,291 582,544 615,069 672,525 - - - - - 1,109,928 36,384,684 51,217,507 82,742,476 90,961,465 112,054,938 105,428,188 298,408,382$ 366,089,032$ 432,864,933$ 488,770,974$ 573,032,163$ 639,207,682$ 215,774,004$ 259,935,987$ 276,956,837$ 317,756,598$ 366,417,603$ 387,004,052$ 4,569,409 5,239,814 11,312,169 14,895,725 18,986,084 36,451,847 - - - - - - 40,108,013 49,139,697 61,290,160 64,574,642 74,958,469 108,541,142 - - - - - - 1,572,272 556,027 563,291 582,544 615,069 672,525 - - - - - 1,109,928 36,384,684 51,217,507 82,742,476 90,961,465 112,054,938 105,428,188 298,408,382$ 366,089,032$ 432,864,933$ 488,770,974$ 573,032,163$ 639,207,682$
CITY OF MENIFEE
CHANGES IN NET POSITION
LAST 10 FISCAL YEARS
-93-
For the Year Ended June 30, 2016 2017 2018 2019EXPENSESGovernmental Activities:General Government 4,236,457$ 5,158,876$ 6,265,963$ 8,177,727$ Public Safety 20,927,524 18,129,742 25,497,233 27,595,237 Community Development 3,255,560 3,403,182 4,925,868 5,347,196 Recreation Services 1,145,208 1,664,348 3,034,270 4,082,858 Engineering and Public Works 10,361,131 8,281,676 6,082,233 16,979,928 Interest on Long-term Debt 902,716 891,605 917,342 863,713 Total Governmental Activities Expenses 40,828,596 37,529,429 46,722,909 63,046,659 PROGRAM REVENUESGovernmental Activities:Charges for Services 12,764,259 19,257,460 27,218,239 33,823,689 Operating Contributions and Grants 3,041,014 3,578,315 4,722,133 5,141,336 Capital Contributions and Grants 16,930,639 3,107,374 33,885,278 46,785,288 Total Governmental Activities Program Revenues 32,735,912 25,943,149 65,825,650 85,750,313 Total Net Revenues (Expenses) (8,092,684)$ (11,586,280)$ 19,102,741$ 22,703,654$ GENERAL REVENUES AND OTHER CHANGES IN NET POSITIONGovernmental Activities:Taxes:Property Tax 14,577,983$ 12,369,587$ 18,876,904$ 20,771,353$ Transient Occupancy Tax 217,122 225,956 232,117 238,464 Sales Taxes 7,137,168 8,661,218 18,005,117 20,384,878 Franchise Tax 3,084,175 2,973,633 3,076,719 3,141,174 Other Taxes 460,751 582,937 615,333 623,801 Motor Vehicle in-lieu tax, unrestricted 34,451 39,873 47,721 44,113 Use of Money and Property 253,336 221,371 613,165 2,011,031 Other 94,005 92,689 166,682 211,335 Loss on Disposal of Asset - - - - Total Governmental Activities 25,858,991 25,167,264 41,633,758 47,426,149 Special item - 1,066,734 - - Restatement 168,345 - - - Change in Net Position17,766,307$ 13,580,984$ 60,736,499$ 70,129,803$
Source: City Finance Department
-94-
2020 2021 2022 2023 2024 20259,907,689$ 14,183,374$ 12,323,993$ 33,033,004$ 27,374,493$ 35,476,891$ 29,559,843 27,853,563 31,656,830 43,999,757 44,266,879 51,131,903 5,253,832 5,408,287 6,437,034 9,365,371 8,906,681 8,916,422 5,432,196 3,546,483 1,083,554 9,507,152 8,634,157 9,852,490 18,331,483 16,251,977 3,257,056 22,646,459 6,075,482 26,527,280 1,108,218 569,679 1,240,597 1,463,336 622,071 1,646,071 69,593,261 67,813,363 55,999,064 120,015,079 95,879,763 133,551,057 24,835,036 30,631,445 35,013,739 46,428,763 44,218,494 51,158,222 5,530,426 8,057,443 10,832,899 12,278,329 12,041,584 16,476,836 38,642,004 34,739,876 17,727,525 48,472,712 40,366,619 39,181,538 69,007,466 73,428,764 63,574,163 107,179,804 96,626,697 106,816,596 (585,795)$ 5,615,401$ 7,575,099$ (12,835,275)$ 746,934$ (26,734,461)$ 22,361,021$ 24,076,949$ 26,024,300$ 30,117,514$ 33,849,512$ 35,297,340$ 189,032 506,967 529,006 430,098 507,446 485,200 21,102,457 27,476,156 31,684,459 31,922,596 41,064,793 40,206,315 6,289,806 3,653,129 4,055,791 4,433,059 4,765,363 4,838,540 801,896 1,126,860 1,523,574 858,617 871,948 986,027 73,963 73,963 115,162 109,295 135,915 346,458 1,805,179 48,592 (4,886,350) 550,807 8,327,212 10,318,496 155,676 665,758 185,488 319,330 535,387 431,604 - - (30,628) - - - 52,779,030 57,628,374 59,200,802 68,741,316 90,057,576 92,909,980 - - - - - - - - - - (6,543,321) - 52,193,235$ 63,243,775$ 66,775,901$ 55,906,041$ 84,261,189$ 66,175,519$
CITY OF MENIFEE
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST 10 FISCAL YEARS
-95-
As of June 30, 2016 2017 2018 2019GENERAL FUND:Nonspendable 1,880,909$ 64,540$ 28,073$ 65,751$ Committed 6,546,700 3,543,729 3,543,729 3,543,729 Assigned 226,500 461,890 4,396,969 13,437,218 Unassigned1,268,621 8,547,350 16,886,664 18,089,574 Total General Fund 9,922,730 12,617,509 24,855,435 35,136,272 ALL OTHER GOVERNEMENTAL FUNDSNonspendable - - - - Restricted for Community Development Projects 4,180,264 4,660,916 5,363,977 6,373,715 Restricted for Public Safety 267,934 234,782 12,472 191,737 Restricted for Engineering/Public Works 23,908,504 19,781,187 32,360,079 44,929,363 Restricted for Capital Projects 9,619,732 5,461,997 - - Restricted for Debt Service 1,359,694 1,358,034 1,371,931 7,884,527 Unassigned - - (154) - Total All Other Governmental Funds 39,336,128 31,496,916 39,108,305 59,379,342 Fund Balances of Governmental Funds
1 Establish $15,000 self-insurance, retention reserve.
2 Certificates of Participations issued for capital construction. 3 Establish emergency reserve of 20% of General Fund expenditures and $250,000 towards construction of new City Hall.
4 Transferred proceeds from Certificates of Participation to debt service fund. 5 Transferred proceeds from Certificates of Participation to capital project fund.
Source: City Finance Department
-96-
2020 2021 2022 2023 2024 202513,473$ -$ -$ -$ 44,888$ 283,029$ 5,688,958 7,642,510 13,365,638 15,155,133 21,547,672 26,477,456 8,701,430 9,349,272 12,362,984 18,539,728 13,428,030 33,698,772 27,202,215 39,321,579 51,177,085 56,272,032 74,562,723 45,825,454 41,606,076 56,313,361 76,905,707 89,966,893 109,583,313 106,284,711 - 174,389 166,085 237,451 189,312 141,173 4,569,409 5,839,667 12,368,526 14,895,725 18,986,084 17,724,788 - - - - - - 40,165,976 48,539,844 60,237,030 64,798,514 74,958,469 127,268,466 - - - - - - 1,572,272 381,638 397,206 424,763 465,592 531,352 (57,963) (446,980) (412,708) (1,158,298) (938,340) (1,569,838) 46,249,694 54,488,558 72,756,139 79,198,155 93,661,117 144,095,941
CITY OF MENIFEE
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST 10 FISCAL YEARS
-97-
For the Year Ended June 30, 2016 2017 2018 2019REVENUESTaxes 25,477,199$ 24,813,331$ 34,743,397$ 38,523,243$ Licenses and permits 6,832,170 8,061,714 10,867,727 10,765,702 Intergovernmental 6,369,501 5,748,048 12,580,822 13,820,929 Charges for services 1,630,272 6,219,925 6,677,180 8,428,907 Use of money and property 254,526 221,382 613,165 2,011,031 Fines and forfeitures 553,986 655,544 718,890 942,403 Developer participation 4,518,711 5,295,110 9,078,142 14,077,226 Miscellaneous 77,778 95,359 128,323 162,935 Contributions from property owners - - - - Total Revenues 45,714,143 51,110,413 75,407,646 88,732,376 EXPENDITURESCurrent:General government 4,253,708 5,391,081 6,151,518 8,169,511 Public safety 20,836,489 21,350,629 25,062,622 27,389,574 Community development 3,154,443 3,643,590 4,872,304 5,693,505 Parks and recreation 1,182,854 2,461,119 2,833,753 3,592,890 Engineering and public works 20,576,193 5,947,990 9,438,808 13,436,193 Capital outlay 1,200,818 16,157,949 5,898,238 5,143,341 Debt service:Principal retirement 370,000 380,000 390,000 410,000 Interest and fiscal charges 933,587 922,488 911,088 895,488 Bond issuance costs - - - - Total Expenditures 52,508,092 56,254,846 55,558,331 64,730,502 Excess (Deficiency) of Revenues Over (Under) Expenditures (6,793,949) (5,144,433) 19,849,315 24,001,874 OTHER FINANCING SOURCES (USES)Transfers in 1,645,900 1,442,815 1,475,606 2,444,198 Transfers out (1,645,900) (1,442,815) (1,475,606) (2,444,198) Other debts issued - - - 6,550,000 Payment to refunded bond escrow agent - - - - Lease/subscription acquisition - - - - Total Financing Sources (Uses) - - - 6,550,000 Net Change in Fund Balances (6,793,949) (5,144,433) 19,849,315 30,551,874 Fund Balances, beginning of year 56,052,807 49,258,858 44,114,425 63,963,740 Restatements - - - - Fund Balances, end of year $ 49,258,858 $ 44,114,425 $ 63,963,740 $ 94,515,614
Source: City Finance Department
-98-
2020 2021 2022 2023 2024 202544,111,372$ 49,468,537$ 56,042,702$ 58,634,584$ 70,546,687$ 71,147,589$ 10,011,450 10,914,819 13,343,572 10,929,850 11,419,395 11,315,032 16,762,108 19,146,908 23,165,414 26,597,128 36,304,333 26,637,268 8,177,911 9,431,071 10,803,623 20,327,036 17,590,996 21,074,297 1,805,179 63,611 (4,886,358) 1,232,839 10,282,103 14,130,433 598,244 329,487 438,833 306,549 483,068 439,280 5,559,177 9,600,934 10,262,446 13,877,821 13,245,107 15,344,404 117,986 630,271 114,987 278,328 512,657 482,690 - - 14,110,185 10,805,326 25,927,269 30,901,530 87,143,427 99,585,638 123,395,404 142,989,461 186,311,615 191,472,523 9,981,475 13,962,912 18,688,827 31,107,678 29,668,362 37,101,364 33,869,480 29,174,294 34,950,472 42,281,642 45,565,463 55,415,288 5,196,946 5,377,780 6,811,947 8,740,384 9,202,687 8,823,453 3,977,479 4,943,713 5,752,300 7,309,632 7,945,083 8,400,548 20,997,861 7,041,057 5,528,660 6,546,643 9,737,693 9,984,711 18,164,545 13,332,826 17,605,427 25,957,044 50,352,498 30,294,369 475,088 2,585,843 7,250,613 1,432,841 1,384,957 1,595,632 1,140,397 540,059 1,202,754 1,420,140 578,198 552,425 - 306,935 40,000 - - 1,050,136 93,803,271 77,265,419 97,831,000 124,796,004 154,434,941 153,217,926 (6,659,844) 22,320,219 25,564,404 18,193,457 31,876,674 38,254,597 11,477,822 5,509,717 6,051,725 5,074,330 4,461,799 42,772,961 (11,477,822) (5,509,717) (6,051,725) (5,074,330) (4,461,799) (42,772,961) - 17,885,000 6,355,581 - - - - (17,372,007) - - - - - - 6,939,942 1,309,745 2,202,708 8,881,625 - 512,993 13,295,523 1,309,745 2,202,708 8,881,625 (6,659,844) 22,833,212 38,859,927 19,503,202 34,079,382 47,136,222 94,515,614 87,855,770 110,801,919 149,661,846 169,165,048 203,244,430 - 112,937 - - - - $ 87,855,770 $ 110,801,919 $ 149,661,846 $ 169,165,048 $ 203,244,430 $ 250,380,652
CITY OF MENIFEE
MAJOR REVENUES BY SOURCE – GOVERNMENTAL FUNDS
LAST 10 FISCAL YEARS
-99-
Fiscal Property Sales Motor Vehicle FranchiseYear Tax Tax In Lieu Tax Tax Total2016 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 30,118,595 31,922,596 109,295 4,433,059 66,583,545 2024 33,849,512 41,064,793 135,915 4,765,363 79,815,584 2025 37,686,684 40,383,098 346,458 4,838,540 83,254,780 Source: City Finance Department
CITY OF MENIFEE
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST 10 FISCAL YEARS
-100-
Total TaxableFiscal Assessed PercentYear Secured Unsecured SBE Nonunitary Exemptions Value Change2016 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 14.10%2024 15,324,067,513 212,134,718 - - 15,536,202,231 10.67%2025 16,638,031,377 218,695,934 - - 16,856,727,311 8.50%Source: HdL Companies, Riverside County AssessorIn 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% based upon the assessedvalue of the property being taxed. Each year, the assessed value of property may be increased by an "inflationfactor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time it issold to a new owner. At that point, the new assessed value is reassessed at the purchase price sold. Theassessed valuation data shown above represents the only data currently available with respect to the actual marketvalue of taxable property and is subject to the limitations described above.
CITY OF MENIFEE
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
BY USE CATEGORY
LAST 10 FISCAL YEARS
-101-
Total Taxable TotalFiscal Residential Commercial Industrial Assessed Percent DirectYear Property Property Property Dry Farm Other Exemptions Value Change Rate2016 6,349,493,758$ 444,912,094$ 79,232,788$ 21,615,968$ 1,070,534,347$ (20,342,468)$ 7,945,446,487$ 18.69% 0.140692017 6,823,268,713 465,564,229 80,678,726 21,511,185 1,038,617,091 (21,764,528) 8,407,875,416 5.82% 0.139432018 7,368,551,565 522,390,630 86,731,580 20,505,027 920,196,603 (21,427,691) 8,896,947,714 5.82% 0.138092019 8,050,646,652 592,624,119 97,305,521 20,895,440 962,713,827 (21,889,314) 9,702,296,245 9.05% 0.137392020 8,789,370,483 634,623,902 96,855,473 84,679,342 785,500,856 (1,199,425) 10,389,830,631 7.09% 0.136972021 9,605,927,556 718,201,265 92,954,481 61,632,016 792,268,734 - 11,270,984,052 8.48% 0.143022022 10,521,453,404 768,722,082 96,436,403 69,173,323 847,902,607 - 12,303,687,819 9.16% 0.141442023 12,057,202,958 923,154,976 133,416,320 71,921,568 852,200,431 - 14,037,896,253 14.10% 0.139982024 13,384,289,668 990,033,611 151,418,983 88,860,932 921,599,037 - 15,536,202,231 10.67% 0.138902025 14,391,635,650 1,055,154,094 279,966,636 100,311,054 1,029,659,877 - 16,856,727,311 8.50% 0.13809Source: HdL Companies, Riverside County AssessorIn 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% based upon the assessed value of the property being taxed. Each year, the assessed value of property may beincreased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-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
LAST 10 FISCAL YEARS
-102-
Agency 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Basic Levy* 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Eastern Municipal Water Imp District 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 0.03750 0.03750 0.03750 Menifee School Debt Service 0.03010 0.03269 0.06080 0.06303 0.06277 0.06111 0.06319 0.06201 0.06063 0.05080 Metropolitan Water District Original Area0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00700 Perris Union High School Debt Service 0.06236 0.06092 0.01320 0.01320 0.08244 0.08569 0.01320 0.01320 0.08173 0.06850 Mt. San Jacinto Jr. College 0.01394 0.01320 0.05675 0.05243 0.01320 0.01320 0.08859 0.08859 0.01320 0.00268 Total Direct & Overlapping Tax Rates1.14596 1.14711 1.12750 1.18216 1.21191 1.21350 1.21848 1.20480 1.19656 1.16648 City of Menifee Share of 1% per Prop 13 0.12740 0.12740 0.12904 0.12903 0.12903 0.12643 0.12643 0.12643 0.12643 0.12643Total Direct Rate**0.14552 0.14227 0.14069 0.13943 0.13809 0.14302 0.14144 0.13998 0.13890 0.13809This 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 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 TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
-103-
2025 2016Percent Percentof Total City of Total CityTotal Taxable Total Taxable Assessed Assessed Assessed AssessedTaxpayerValue Value Rank Value Value RankMG Artesa Apartments LLC $162,302,398 0.96% 1Scott Road Property 122,408,167 0.73% 2Newport Property LLC 112,702,364 0.67% 3Malcolm Jerome and Maxine Winer 97,077,176 0.58% 4Antelope Ridge Apartments LLC 51,224,884 0.30% 5 $42,987,662 0.54% 4Jefferson Menifee 50,003,247 0.30% 6Cantabria Development LP 49,752,257 0.30% 7Forterra Pipe and Precast LLC 44,855,478 0.27% 8Menifee Commerce Center Phase II 43,512,316 0.26% 9STAG California Holdings 36,000,000 0.21% 10Inland Empire Energy Center, LLC 295,000,000 3.71% 1Donahue Schriber Realty Group 51,259,549 0.65% 2Carrington Place Limited 46,227,829 0.58% 3Stark Menifee Land 39,847,235 0.50% 5PHH Real Estate 32,486,894 0.41% 6Strata Cantabria 31,801,853 0.40% 7KB Home Coastal Inc. 23,412,302 0.29% 8Target Corporation 23,340,717 0.29% 9HCP HB2 Carrington Cherry Hills 21,585,827 0.27% 10Totals 769,838,287 4.57% 607,949,868 7.65%All Other 16,086,889,024 95.43% 7,337,496,619 92.35%City Total16,856,727,311$ 100.00%7,945,446,487$ 100.00% Source: HDL Companies
CITY OF MENIFEE
PROPERTY TAX LEVIES AND COLLECTIONS
LAST 10 FISCAL YEARS
-104-
Total TaxFiscal Levy for Percentage of Amount Collected in Total Tax PercentageYear Fiscal Year Amount Levy Subsequent Year Collections of Levy2016 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%2024 22,834,638 22,655,541 99.22% 179,097 22,834,639 100%2025 24,181,356 24,071,082 99.54% 110,274 24,181,357 100%Source: County of RiversideFiscal Year of LevyCollected within the WiththepassageofResolution10-138inJune2010,theCityofMenifeeagreedtoparticipateintheRiversideCountyTeeterProgram. Under the Teeter Plan, the City is paid in full each year for the actual amount of property taxes levied, regardless of theamount of delinquencies.
CITY OF MENIFEE
RATIO OF OUTSTANDING DEBT BY TYPE
LAST 10 FISCAL YEARS
-105-
Certificates Distribution Total Percentage ofFiscal of Facilities County Other Governmental Personal PerYear Participation Financing Repayment (1) liabilites Activities Income Capita (2)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 2024 14,960,000 5,057,262 - 6,333,181 26,350,443 0.71% 236.20 2025 14,270,000 4,616,365 - 12,690,470 31,576,835 0.80% 273.83 (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
LAST 10 FISCAL YEARS
-106-
Total Less PercentGeneral Debt Net of Debt to DebtFiscal Assessed Obligation Service Bonded Assessed perYear Population Value Bonds Fund (1) Debt Value (2) Capita2016 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% - 2024 111,560 15,536,202,231 - - - 0.00% - 2025 115,316 16,856,727,311 - - - 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, 2025
-107-
Percent City's Total Applicable Share ofDebt to City DebtDirect DebtCity of Menifee-Certificates of Participation 14,270,000$ 100.0% 14,270,000$ City of Menifee-Distribution Facilities Financing Agreement 4,616,365 100.0% 4,616,365 Lease Liabilities 11,244,324 100.0% 11,244,324 Subscription Liabilities 1,446,146 100.0% 1,446,146 Total Direct Debt25,620,671$ 100.0%31,576,835$ Direct and Overlapping Tax and Assessment DebtMetropolitan Water District 17,155,000$ 0.396% 67,934$ Eastern Municipal Water District Improvement Districts 10,555,000 77.290-100. 8,672,300 Mount San Jacinto Community College District 237,330,000 12.064 28,631,491 Perris Union High School District 284,456,372 58.221 165,613,344 Menifee Union School District 184,411,292 75.303 138,867,235 Perris Union High School District Community Facilites District No. 92-129,055,000 62.792 18,244,216 Menifee Union School District Community Facilities Districts 187,580,000 37.715-100. 184,531,761 Romoland School District Communit Facilities Districts 200,355,000 54.833-100. 187,974,230 Eastern Municipal Water District Community Facilities Districts 81,250,000 62.092-100. 78,602,126 City of Menifee Community Facilities District Nos. 2016-2 and 2017-184,670,000 100 84,670,000 Riverside County Community Facilities Districts 24,890,000 25.986-94.131 19,071,333 Eastern Municipal Water District 1915 Act Bonds 1,090,000 64.231 700,118 City of Menifee - 100 - Total Direct and Overalapping Tax and Assessment Debt 915,646,088$ Overlapping General Fund Debt:Riverside County General Fund Obligations 1,134,209,783$ 3.973% 45,062,155$ Riverside County Pension Obligations 603,055,000 3.973 23,959,375 Perris Union High School District Certificates of Participation 39,720,566 58.221 23,125,711 Menifee Union School District Certificates of Participation 48,185,565 75.303 36,285,176 City of Menifee Distribution Facilities Financing Agreement 4,616,365 100.000 4,616,365 Total Gross Overlapping General Fund Debt 133,048,782$ Less: Riverside County Supported Obligations - Total Net Overlapping General Fund Debt 133,048,782$ Overlapping Tax Increment Debt 219,174,720$ 2.118-10.60112,166,518$ (Riverside County Successor Agency)Total Direct Debt31,576,835$ Total Overlapping Debt1,092,438,223$ Total Direct and Overlapping Debt1,124,015,058$ Gross Combined Total Debt 11,124,015,058$ Ratios to 2024-25 Assessed Valuation:Total Direct Debt 0.03%Total Direct and Overlapping Tax and Asssessment Debt 5.43%Gross Combined Total Debt 6.29%Net Combined Total Debt 6.29%The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value thatis within the boundaries of the city divided by the district's total assessed value.(1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bondedcapital lease obligations.Source: California Municipal Statisitics
CITY OF MENIFEE
LEGAL DEBT MARGIN INFORMATION
LAST 6 FISCAL YEARS*
-108-
202020212022202320242025Assessed valuation10,389,830,631$ 11,270,984,052$ 12,303,687,819$ 14,037,896,253$ 15,536,202,231$ 16,856,727,311$ Debit Limit Percentage15%15%15%15%15%15%Debt limit1,558,474,595 1,690,647,608 1,845,553,173 2,105,684,438 2,330,430,335 2,528,509,097 Total Net Debt Applicable to the LimitGeneral Obligation Bonds:- - - - - - Legal debt margin1,558,474,595$ 1,690,647,608$ 1,845,553,173$ 2,105,684,438$ 2,330,430,335$ 2,528,509,097$ Total Debt Applicable to the Limitas a Percentage of Debt Limit0.00%0.00%0.00%0.00%0.00%0.00%The City of Menifee has no general obligation indebtedness.* Only last six years shown.Source: City Finance Department, HdL CompaniesSection 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
LAST 10 FISCAL YEARS
-109-
Personal Per Capita Median Occupied PersonsFiscal Income Personal Home Housing per Median UnemploymentYear Population (In 1000) Income Price Units Household Age Rate2016 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%2024 111,560 3,699,561 33,162 555,000 38,989 2.86 37.3 5.00%2025 115,316 3,965,869 34,391 555,000 39,096 2.95 38.2 5.20%Source: Riverside County Center for Demographic Research, California Department of Finance E-5
CITY OF MENIFEE
PRINCIPAL EMPLOYERS
JUNE 30, 2025
-110-
Number of Percentage ofEmployer Employees Employment RankMenifee Union School District 1,620 31.21% 1Mt. San Jacinto College 1,309 25.22% 2Romoland Elementary School District 746 14.37% 3Target 450 8.67% 4Stater Bros 348 6.70% 5City of Menifee 345 6.65% 6Texas Roadhouse 188 3.62% 7Southern California Edison 185 3.56% 80.00% 90.00% 10Total Employment Listed 5,191 100.00%Source: Menifee Valley Chamber of Commerce, City of Menifee Business License Division 2025
Information for the nine years prior is not currently available.
CITY OF MENIFEE
FULL AND PART-TIME CITY EMPLOYEES BY PROGRAM
LAST 10 FISCAL YEARS
-111-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Full Time EquivalentFull Time EquivalentFull Time EquivalentFull Time EquivalentFull Time EquivalentFull Time EquivalentFull Time EquivalentFull Time EquivalentFull Time EquivalentFull Time EquivalentFUNCTIONCity Manager 2 1 4 4 5 5 8 10 10 9Administrative Services 5 6 0 0 0 0 0 0 0 0City Clerk 2 2 3 3 5 5 6 6 6 6Emergency Services 0 0 0 0 0 0 0Finance 6 7 10 12.5 13.5 13.5 17 21 21 21Human Resources 1 0 4 8.5 6.5 6.5 8 9 9 9Information Technology 0 0 2 5 8 8 13 14 15 15Economic Development 2 3 3 5 3.5 3.5 4 5 5 5Community Development 4 5 11 13.5 13 13 15 15.5 15.5 15.5Code Enforcement 4 4 7 7 5 6 8 8 8 8Fire 0 0 1 2 2 2 2 2 1 1Engineering/ Pub Works 12 16 24 32 33 33 44.5 46.5 50 51Building/Safety 8 9 12 14 12 12 15 15 15 15Community Services 13 18.58 21.55 31.68 23.39 23.39 44.2 48.4 55 56Police 0 0 0 76 77 78 118 120 122 122Total 59.00 71.58 102.55 138.18 206.89 208.89 302.70 320.40 332.50 333.50 Part-Time Employees are expressed as Full-Time Equivalents.Source: City Finance Department
CITY OF MENIFEE
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
LAST 10 FISCAL YEARS
-112-
As of June 30, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025FUNCTIONPublic WorksStreets (Miles) 317.9 317.9 317.9 317.9 327.1 341.0 347.2 355.9 386.3 520.9Traffic Signals 73 68 71 72 75 84 89 99 94 96Community ServicesParks 7 8 11 12 14 14 15 21 22 22Park Acreage 39 45 53.7 58.7 79.1 79.0 85.1 100.1 118.2 118.2Source: City Public Works Department, Community Services
CITY OF MENIFEE
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST 10 FISCAL YEARS
-113-
As of June 30, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025FUNCTIONPolice ServicesPhysical Arrests 1,295 1,412 1,385 1,500 1,582 1,403 1,154 1,471 1,617 1,597 Parking Citations 330 230 569 435 241 473 356 528 836 768 Traffic Citations 3,720 1,733 4,422 5,927 2,492 2,877 3,835 7,125 7,244 6,658 Calls for Service 47,728 47,926 47,961 49,291 48,615 52,152 50,342 73,192 74,456 73,341 Fire ServicesMedical/Public service Calls 9,741 10,081 9,342 10,071 9,172 10,232 10,612 11,031 11,059 11,491 Fire calls 144 184 182 167 193 225 210 188 183 201 All other calls 1,310 1,499 2,158 1,552 2,315 1,494 2,327 2,359 2,431 2,676 Total 11,195 11,764 11,682 11,790 11,680 11,951 13,149 13,578 13,673 14,368 Public WorksPotholes/Skinpatch (square feet) 12,335 18,215 31,458 135,277 63,348 16,358 20,052 104,000 426 618 Curb Refurbishment/Painting (linear feet)285 3,254 983 722 3,540 7,276 39,246 1,200 100 500 Right of Way Clearing (linear feet) 14,020,200 13,853,520 4,475,936 886,818 20,006 988,916 381,828 1,600 2,348 1,639 Traffic Signs repaired/replaced 213 275 821 418 461 1,176 572 638 472 561 Building & SafetyBuilding Permits Issued 4,031 4,365 5,179 6,232 6,147 6,778 5,959 6,261 4,015 4,454 Building Inspections Completed 13,410 15,417 21,522 23,540 25,480 33,567 30,736 28,363 32,225 29,608 Community DevelopmentPlanning Applications Completed 275 327 259 208 348 393 402 336 342 196 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, 2025
-114-
Geographic Location: The City of Menifee is located approximately 80 miles south east of Los Angeles in the southwestern portion of Riverside CountyPopulation: 115,316Area in square miles: 46Form of Government: Council-ManagerDate of Incorporation: October 1, 2008Number of Full Time Employees: 333.50Public Safety:Police Department Menifee City Police Department as of 6/30/2025, 122 FTEFire DepartmentRiverside County/Cal Fire Department contract, 70 FTE, 4 Fire StationsLibrary: 2 branches, Riverside County Library SystemRecreation:24 Parks owned by Valley Wide Recreation and Park District 22 Parks owned by the CitySchools:Elementary 15Middle Schools 6High Schools 3Community Colleges 1Source: City Finance Department
CITY OF MENIFEE
TAXABLE SALES BY CATEGORY*
LAST TEN CALENDAR YEARS (IN THOUSANDS OF DOLLARS)
-115-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Apparel Stores 27,964$ 30,952$ 34,074$ 35,524$ 38,787$ 41,407$ 30,146$ 45,691$ 50,614$ 54,560$ General Merchandise 66,085 68,839 69,651 71,315 75,403 76,332 81,531 105,862 107,512 96,989 Food Stores 23,456 26,677 28,867 31,793 36,815 39,660 47,444 48,980 53,328 55,199 Eating and Drinking Places 80,576 91,283 102,449 116,287 125,691 144,016 143,668 180,789 207,493 219,715 Building Materials 40,526 72,621 79,070 87,091 93,238 91,679 111,335 144,990 147,040 131,018 Auto Dealers and Suppliers 33,916 41,301 54,074 57,404 55,065 60,944 52,579 61,433 67,121 74,146 Service Stations 102,256 91,394 84,643 95,334 117,995 123,332 104,514 153,057 182,819 165,105 Other Retail Stores 103,300 118,629 130,023 140,778 146,801 143,542 132,786 178,792 180,933 173,766 All other Outlets 39,131 45,703 51,449 53,236 60,917 62,444 56,727 229,999 261,708 359,805 Total 517,210$ 587,399$ 634,299$ 688,762$ 750,711$ 783,357$ 760,729$ 1,149,592$ 1,258,568$ 1,330,303$ Source: State of California Board of Equalization and the HdL CompaniesNote: Due to confidentiality issues, the names of the ten largest revenue payers are not available.* Information for 2025 is not yet avaibale.
CITY OF MENIFEE
TOP 25 SALES TAX PRODUCERS
FOR FISCAL YEAR ENDED JUNE 30, 2025 AND JUNE 30, 2016
-116-
Business Business Business Name Category Business Name Category 7 11 38490 Service Stations Americamax ContractorsArco AM PM Service Stations Arco AM PM Service StationsArco AM PM Service Stations Arco AM PM Service StationsArco AM PM Service Stations Best Buy Electronics/Appliance StoresArco AM PM Service Stations BJ's Restaurant Brewhouse Casual DiningBest Buy Electronics/Appliance Stores Chevron Service StationsCamping World RV Sales Trailers/RVs Chevron/Circle K Service StationsChevron/Circle K Service Stations Circle K Service StationsCircle K Service Stations Grove Lumber Building MaterialsGrove Lumber Building Matericals Kohl's Department StoresHome Goods Home Furnishings Living Spaces Furniture Home FurnishingsImperial Sprinkler Supply Garden/Agricultural Supplies Lowes Building MaterialsIn N Out Burger Quick-Service Restaurants Menifee Car Wash Service StationsKohls Department Stores Ralph's Grocery StoresLiving Spaces Furniture Home Furnishings Richardson's Auto & RV Sales Trailers/RVsLowes Building Matericals Ross Dress for Less Family ApparelM A Mortenson Company Contractors Shell Service StationsNova Power, LLC Energy/Utilities Stater Bros. Markets Grocery StoresRoss Dress for Less Family Apparel Target Discount Dept StoresRV Supercenter Trailers/RVs Texas Roadhouse Casual DiningStater Brothers Grocery Stores T J Maxx Family ApparelTarget Discount Dept. Stores United Oil Service StationsTexas Roadhouse Casual Dining Valero Service StationsTJ Maxx Family Apparel Verizon Wireless Electronics/Appliance StoresUnited Rentals North America Repair Shop/Equip. Rentals Walgreens Drug StoresPercentage of Fiscal Year TotalPaid by Top 25 Accounts 60.82% 61.63%Source: HdL Reports 2025 2016
CITY OF MENIFEE
MEASURE DD 1% SALES TAX REVENUES AND EXPENDITURES HISTORY
-117-
Fiscal Year20172018201920202021Revenues1% 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 ExpendituresCode 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$ 2022202320242025Revenues1% Transaction Tax 19,607,014$ 19,634,904$ 24,088,083$ 23,370,559$ Interest Income (110,856) 236,870 499,582 826,946 Total Revenue:19,496,159 19,871,774 24,587,665 24,197,505 ExpendituresCode Enforcement 319,706 357,907 387,426 429,640 County Sheriff Services - - - - County Fire Services 5,171,600 10,928,976 12,140,268 12,318,177 Capital Equipment 42,319 460,204 252,619 358,559 Capital Projects-Roads 2,765,313 748,442 2,787,065 - Menifee Police 5,746,016 6,966,283 7,120,472 7,669,732 Total Expenditures:14,044,955 19,461,812 22,687,850 20,776,108 Cumulative Balance:17,122,825$ 17,532,786$ 19,432,601$ 22,853,998$ 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