CITY OF MURRIETA
GENERAL OPERATING ACCOUNT
1 TOWN SQ
MURRIETA CA 92562-7922
Account Number - DDA
FUND SUMMARY
Dividends Earned YTD 5,273,222.68
Federal Withholding YTD .00
7-Day Simple Yield 4.57637 %
Federal Withholding .00
Beginning Balance 108,707,483.76
Shares Purchased 5,908,096.08 +
Shares Redeemed 7,932,452.96 -
Ending Balance 106,683,126.88
Prior Month Dividends Paid to Checking 445,572.84
Dividends Earned in Current Month 407,608.44
Funds Pending Redemption 630,258.99-
167
STAGECOACH SWEEP
Date Investment Balance Annualized Fund Yield Daily Dividend Factor Daily Accrual 11-06 109,553,422.04 4.740 % .000129879 14,228.69
11-07 108,740,174.57 4.734 % .000129721 14,105.88
11-08 108,804,285.61 4.652 % .000127474 13,869.72
11-09* 108,801,875.88 4.652 % .000127474 13,869.41
11-10* 108,801,875.88 4.652 % .000127474 13,869.41
11-11* 108,801,875.88 4.652 % .000127474 13,869.41
11-12 108,801,875.88 4.600 % .000126046 13,714.04
11-13 106,135,748.13 4.597 % .000125964 13,369.28
11-14 105,983,521.85 4.608 % .000126262 13,381.69
11-15 105,913,615.36 4.584 % .000125614 13,304.23
11-16* 105,099,890.90 4.584 % .000125614 13,202.02
11-17* 105,099,890.90 4.584 % .000125614 13,202.02
11-18 105,099,890.90 4.588 % .000125707 13,211.79
11-19 104,931,147.27 4.583 % .000125580 13,177.25
11-20 104,739,586.58 4.582 % .000125537 13,148.69
11-21 104,205,235.72 4.577 % .000125415 13,068.90
11-22 104,210,290.65 4.576 % .000125383 13,066.20
11-23* 104,210,290.65 4.576 % .000125383 13,066.20
11-24* 104,210,290.65 4.576 % .000125383 13,066.20
11-25 108,841,155.50 4.579 % .000125464 13,655.65
11-26 109,077,877.32 4.581 % .000125528 13,692.33
11-27 107,183,483.91 4.581 % .000125509 13,452.49
11-28* 106,683,126.88 4.581 % .000125509 13,389.69
11-29 106,683,126.88 4.573 % .000125304 13,367.82
11-30* 106,052,867.89 4.573 % .000125304 13,288.85
TOTAL MTD 407,608.41
* Indicates non-business day
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MONEY MARKET MUTUAL FUNDS (EACH, A "MMMF") ARE NOT FDIC INSURED, HAVE NO BANK GUARANTY AND MAY LOSE VALUE.
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11/01/2024 - 11/30/2024
Account Number - DDA
168
CITY OF MURRIETA
City Council Meeting Agenda
Report
1/21/2025
Agenda Item No. 5.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Cristal McDonald, City Clerk
PREPARED BY: Angela Martin Van der Baan, Records Manager SUBJECT:
Approve an Agreement with Unity OnBase - Konica Minolta for the Electronic Content Management System
RECOMMENDATION
Approve an Agreement with Unity OnBase - Konica Minolta for the City’sElectronic Content Management System, for a total not to exceed the amount of $125,000.02 in a form approved by the City Attorney; Amend the Fiscal Year 2024/25 Operating Budget by establishing an additional appropriation of $53,914.64 in General Ledger Account 7268340-62160;
Authorize exemption from bidding requirements; and
Authorize the City Manager to execute the agreement.
PRIOR ACTION/VOTE
On August 6, 2019, the City Council adopted Resolution No. 19-4131, authorizing entering into an agreement with Konica Minolta for software and services related to a Sire to OnBase Migration of the City’sEnterprise Content Management and Agenda Management Solution (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
As the City’scustodian of records and in accordance with California Government Code Section 12168.7(c) and Secretary of State standards for the Trusted Storage of Official Electronic Documents or Records, the City Clerk is responsible for maintaining and ensuring the proper management of the City’srecords. A trusted Electronic Content Management System (ECMS) is the standard and requirement for the City‘s Records Management Program. An ECMS is a software application that helps organizations store and manage the lifecycle of their records.
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Agenda Item No. 5.
On April 3, 2012, the City Council adopted Resolution No. 12-2893, approving the purchase of the Sire Records Management and Agenda Management System (Sire), a comprehensive records and agenda management system. Sire is a product of Hyland Software, Inc. (Hyland). The initial term of the licensing and maintenance services was for five years, which expired in June 2017. Staff negotiated an administrative extension under the City Manager’s signing authority through June 30, 2019.
A new, one-year agreement was executed from May 2019 through June 30, 2020. At that time, Hyland notified the City that the Sire product was no longer being supported with updates or development of new features and that Hyland’s next-generation product, Unity/OnBase, was available should the City wish to upgrade. The previous City Clerk evaluated the Unity/OnBase product and determined that the upgrade was essential. The search capabilities for the records management solution were likely intended to provide greater transparency on the public-facing portal, ensuring residents could easily find scanned documents from the convenience of their homes or mobile locations, as well as assist records management staff in complying with the City‘s Records Retention Schedule and the Public Records Act.
On August 6, 2019, under the previous City Clerk, the City Council adopted Resolution No. 19-4131 authorizing an agreement with Konica Minolta for software and services related to a Sire to OnBase migration of the City’sElectronic Content Management and Agenda Management Solution for an amount not to exceed $145,710.
In 2022, the current City Clerk began evaluating the OnBase/Unity product, including the support received from Konica Minolta. As a result, in 2023, the City opted to stop using Unity/OnBase for agenda management but retained the services for their records management software, agenda media files, and technical support.
As a continuous effort to ensure the records system used is effective and to resolve identified issues, in early 2024, the City Clerk began to move forward on issuing a Request for Proposal (RFP) for an ECMS.
Unfortunately, due to budgetary constraints, issuance of the RFP was postponed.
As of December 2024, the City Clerk has exceeded the $145,710 that was approved by the City Council in 2019 and is proposing to enter into a new agreement that includes the cost of 1) yearly service maintenance fees for three years; 2) agenda media files subscription; 3) two one-time fees for data export and system upgrade services; and 4) a contingency amount for unforeseen costs as follows:
Fee Type FY 24-25 FY 25-26 FY 26-27 Contingency
Records
Management System
Maintenance
$23,321.95 $20,056.87 $21,561.14 NA Yearly Cost
Agenda Media Files
Subscription
$12,379.80 NA NA NA Yearly Cost
Agenda Media Files
Data Export
$9,000 NA NA NA One-Time Cost
Records
Management System
Upgrade
$25,000 NA NA NA One-Time Cost
For Unforeseen
Costs
NA NA NA $13,680.26 As Needed
Total: $69,701.75 $20,056.87 $21,561.14 $13,680.26 $125,000.02 Staff recommends continuing to use the services provided by Unity OnBase-Konica Minolta until proper funds can be budgeted for a more efficient and fitting system for the City. Section 3.08.280 of the Municipal Code outlines competitive bidding procedures, and allows that requirements may be dispensed when the City CITY OF MURRIETA Printed on 1/16/2025Page 2 of 3
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Agenda Item No. 5.
outlines competitive bidding procedures, and allows that requirements may be dispensed when the City Council finds that adherence to the procedures in this chapter would be inefficient, impractical, and unnecessary. The City Clerk will evaluate budget obligations and decide if completing a Request for Proposal (RFP) process is appropriate in Fiscal year 2026/27.
Staff is working with the City Attorney and Konica Minolta to develop the proper agreement forms and/or amendments and recommends authorizing the City Manager to approve such agreement for future yearly Service Maintenance and Subscription renewals and a one-time fee for the Data Export and System Upgrade, with a total not to exceed $125,000.02, upon approval as to form by the City Attorney.
FISCAL IMPACT
Staff is requesting an additional budget appropriation in the Fiscal Year 2024/25 Operating Budget in General Ledger Account 7268340-62160 to cover the $53,914.64 deficiency between what was budgeted and what will need to be expended for the year. The budget for the remaining years of the agreement will be included in the normal biennial budget process.
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City Council Meeting Agenda
Report
1/21/2025
Agenda Item No. 6.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Justin Clifton, Assistant City Manager
PREPARED BY: Kristen M. Crane, Assistant City Manager
SUBJECT:
First Amendment to the Temporary License Agreement with Juniper Trails, LLC for Use of Property at Murrieta Equestrian Center
RECOMMENDATION
Approve the First Amendment to the Temporary License Agreement with Juniper Trails, LLC for use of a portion of the property at the Murrieta Equestrian Center; Amend the Fiscal Year 2024/25 Operating Budget; and
Authorize the Mayor to execute the First Amendment to the Temporary License Agreement.
PRIOR ACTION/VOTE
On August 18, 2009, the City Council adopted Resolution No. 09-2358, 1) Approving a Purchase and Sale Agreement for the acquisition of the Murrieta Stud Ranch for the sum of $2,339,100; 2) Directing staff to open and enter into escrow; 3) Authorizing the City Manager to execute associated documents related to its purchase; and 4) Approving the Memorandum of Understanding with Pasha Investments, LLC for the management of the property for one-year after close of escrow (Vote: 5-0).
On May 16, 2017, the City Council approved a license agreement with JACC & Co. to operate a 2.3-acre portion of the Murrieta Equestrian Park (Vote: 5-0).
CITY COUNCIL GOAL
Coordinate and deliver responsive, effective community services.
BACKGROUND
In 2009, the City purchased the former Murrieta Stud Farm to meet the needs of the equestrian community in Murrieta. An equestrian facility has been identified as a need within the Parks Master Plan completed around that time. The overall property is 20.59 acres. In the initial years under City ownership, the property was used for hosting equestrian activities and private events. In more recent years, the property generally functions as a CITY OF MURRIETA Printed on 1/16/2025Page 1 of 3
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Agenda Item No. 6.
for hosting equestrian activities and private events. In more recent years, the property generally functions as a passive park that equestrian enthusiasts can use, along with limited use for Police Department training activities and as a location for archery instruction as part of the City’sRecreation Program. There are several structures on the property which are in varying need of repair. A concept plan was completed in 2017 for the build-out of the property as an equestrian center for recreational use. However, the City did not have funding to proceed with implementation, which was estimated to cost $10 million at that time. Another challenging dynamic is that the site is not connected to the water or sewer system and will have to be annexed into both the Metropolitan Water District and Western Municipal Water District in order to be connected for those services.
In 2015, staff issued an informal Request for Proposals to solicit an Operator for a 2.3-acre portion of the Equestrian Park. Only one proposal was submitted. The City entered into an agreement with that individual (Reata Ranch), which then opted to terminate their agreement with the City in 2017.
In March 2017, there was another Request for Proposals process through which one proposal was received.
The City entered a Temporary License Agreement with that entity, JACC & Co., now operating as Juniper Trails LLC (Operator). The original term of the Temporary License Agreement was three years, with five additional one-year renewals. The base rent in 2017 was $550 per month, with a 3% escalator annually in May, plus a cost for electricity. Water is provided via a well. There are no sewer services, and the Operator is responsible for all other utilities and services, including trash and portable restrooms. Presently, the monthly rent is $740, plus $65 for a proportional share of electricity.
In March 2024, the City informed the Operator that for the final year of the Agreement, it proposed a month-to- month arrangement, during which the parties would work together to review the monthly rent amount.
Determining the fair market value for the Temporary License Agreement is difficult to calculate. There are a few examples of municipal-owned equestrian facilities that are leased to private entities for operation.
Recognizing the unique nature of this facility and the limited interest the City has previously experienced for the operation of the facility by an outside entity, staff has had ongoing discussions with the Operator about their operations and the potential for increasing the rent.
Attachment 1 includes a First Amendment to the Temporary License Agreement for consideration of the City Council. The basic terms are as follows:
· One-year extension to May 2, 2026, with the City having the right to renew the term for five additional one-year periods;
· Base rent amount increases effective February 2025, to $1,800 per month, with a 3% escalator increase annually in May; and
· Additional $65 charge per month for electricity, with a 3% escalator increase annually in May.
All other provisions of the original Temporary License Agreement will remain unchanged.
Under the Temporary License Agreement, the Operator is able to use two spaces within the adjacent barn for storage. The operator also owns all of the pipe corral fencing and other improvements.
By approving this First Amendment to the Temporary License Agreement, the City Council recognizes that the Operator, which is a nonprofit organization, will be operating a service that provides a public benefit, including:
· Riding instruction programs for about 65 students per week; · Partnerships with local charter schools to offer lessons as part of their physical education program; · Participation in the City’sCommunity Services Department Recreation Program to offer classes to the CITY OF MURRIETA Printed on 1/16/2025Page 2 of 3
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Agenda Item No. 6.
public; and
· Maintaining the equestrian character of this area of the community and providing an opportunity for the public to connect with that facet of Murrieta’shistory who might not otherwise be able to due to lack of ownership of a horse.
Additionally, Juniper Trails is interested in/willing to offer public open house-type events to connect the community with the City’sequestrian history. The Operator is also interested in offering a therapeutic riding program.
Juniper Trails has scaled back private boarding services. Most of the horses that now reside at Juniper Trails are considered “lesson horses” because they either belong to students or are horses that are used for the lesson program. Boarding services are very labor intensive and expensive to operate, whereas the lesson horses are cared for by the students.
The additional income to the City from the increased rent will generally be used toward upkeep and maintenance costs associated with the overall Equestrian Center property, which includes tree trimming, bee removal, and pest remediation.
FISCAL IMPACT
If the City Council approves the First Amendment to the Temporary License Agreement, additional revenues of $1,060 per month will be realized. Staff recommends an amendment to the Fiscal Year 2024/25 Operating budget to increase the Community Services District Fund Lease/Rental Account 1715162-44462 by $5,300 for the remainder of the fiscal year and approximately $12,720 annually thereafter. This amount will be used toward maintenance costs for the overall property.
ATTACHMENTS
1. First Amendment to Temporary License Agreement
2. Map of Equestrian Center
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01375.0022/1018792.4 1
FIRST AMENDMENT TO TEMPORARY LICENSE AGREEMENT
This First Amendment to Temporary License Agreement (“Amendment”) is made and entered into this ___ day of ____________, 2025, by and between the CITY OF MURRIETA, a municipal corporation (“ City”) and JUNIPER TRAILS , LLC , a California limited liability company as successor to JACC & CO., LLC , a California limited liability company (stet) (“Licensee”). City and Licensee are sometimes hereinafter individually referred to as a “Party” and jointly as the “Parties.”
RECITALS
A. City and Licensee entered into that certain Temporary License Agreement dated May 2, 2017 (“Original Agreement”) for approximately 2.3 acres of the real property located at 42670 Juniper Street, City of Murrieta, County of Riverside, State of California (“Premises”).
B. The term of the Original Agreement expires on May 2, 2025 (“Current Term Expiration Date”).
C. The current rent under the Original Agreement is Seven Hundred Forty Dollars ($740) per month.
D. JACC & Co. , LLC was the original licensee which assigned the Original Agreement to Licensee which assumed all obligations under the Original Agreement and has been operating the Premises.
E. The Parties desire to amend the Original Agreement as set forth in this Amendment to, among other things, extend the term by one (1) year and increase the monthly rent.
NOW, THEREFORE, the Parties agree that the Agreement shall be amended as follows:
AGREEMENT
1. Recitals. The foregoing recitals are incorporated herein by reference.
2. Defined Terms. All terms not otherwise defined in this Amendment shall have the meanings set forth in the Original Agreement.
3. Effective Date. This Amendment shall be effective on th e day that it is executed by both Parties (“Amendment Effective Date”).
4. Amendments/Modifications to Original Agreement. The Original Agreement is amended as follow:
A. Section 1 Term is amended to extend the Current Term Expiration Date to May 2, 2026. In addition, the City reserves the right to renew the term for an 175
01375.0022/1018792.4 2
additional five (5), one (1) year periods (“Extended Term”). Annual renewals shall be automatic and based on satisfactory performance of service based upon review by the City Manager or designee unless terminated by either Party with thirty (30) days written notice prior to the expiration of then existing term.
B. Section 2 Rent is amended to provide that, commencing on the Amendment Effective Date, the rent shall be One Thousand E ight Hundred ($1,800) per month (“Rent”). The Rent shall increase at the rate of Three Percent (3%) on May 2nd of each year of the Extended Term, if applicable. Any sums due under this Agreement is hereinafter referred to as “Rent.”
C. Section 4 Improvements/Alterations/Repairs is amended to add a new subparagraph (h) as follows:
“h. Default/Remedies. If Licensee fails to pay Rent within three (3) days of written demand or violates any other provision of this Temporary License and fails to cure s ame within fifteen (15) days of written demand, Licensee shall be in default (“Default”). Upon Default, City shall have all rights available at law or equity, including, but not limited to, terminating this Temporary License, and the remedy described in Ca lifornia Civil Code Section 1951.4 (lessor may continue lease in effect after lessee's breach and abandonment and recover rent as it becomes due, if lessee has right to sublet or assign, subject only to reasonable limitations).”
D. A new Section 9 Termination is added as follows:
“Notwithstanding any other provision of this Temporary License, either party may elect in its sole discretion to terminate this Temporary License upon not less than thirty (30) days of notice of its election to terminate this Temporary License (“Notice of Termination”). This Temporary Licensee shall terminate at the end of the 30 day period (“Date of Termination”).
In the event that the City opts to terminate this Temporary Licensee pursuant to the foregoing provision or elects to not extend the Term pursuant to Section
1. Licensee shall promptly vacate the Premises, including removing any and all items or materials brought to the Premises by Licensee by the date that this Temporary License terminates.”
E. A new Section 10 Utilities is added as follows:
“a. Trash. Licensee shall be responsible for procuring and timely paying all charges for their own trash services directly with Waste Management.
b. Water and Sewer. The Premises are not connected to a municipal water or sewer system. Licensee shall rely solely on well water for its water supply.
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c. Electricity. Licensee shall pay a pro -rated share of the electricity costs for the larger Equestrian Center property, which is serviced by a single meter. As of the Effective Date of this Amendment, the current share of electrical service is $65 per month. This amount shall increase at the rate of Three Percent (3%) on May 2 nd of each year of the Extended Term, if applicable. Additionally, this amount may be increa sed by written notice to Licensee. The assessed amount shall be due and payable concurrently with the Rent.”
5. Continuing Effect of Agreement. Except as otherwise provided in this Amendment, all provisions of this Original Agreement shall remain in full force and effect.
6. Miscellaneous.
6.1 Affirmation. The Parties ratify and reaffirm each and every one of the respective rights and obligations arising under the Original Agreement. Licensee hereby represents and warrants to City that it is the legal successor to the original Licensee and confirms that it has assumed the Original Agreement and all obligations under the Original Agreement as amended by this Amendment.
6.2 No Other Modification. Each Party represents and warrants to the other that (i) there have been no written or oral modifications to the Original Agreement, and (ii) the Original Agreement as amended hereby is currently effective, valid, and binding obligations of the Parties.
6.3 Representations. Each Party (“Representing Party”) represents and warrants to the other Party (“Other Party”) that, as of the Amendment Effective Date, the Other Party is not in default of any material term of the Original Agreement and that there have b een no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Original Agreement.
6.4 Adequate Consideration. The Parties stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment.
6.5 Authority. The persons executing this Amendment on behalf of Licensee represent and warrant to City that (i) Licensee is duly organized and existing under the laws of the State of California, (ii) they are duly authorized to execute and deliver this Amendment on behalf of Licensee, (iii) by so executing this Amendment, Licensee is formally bound to the provisions of this Amendment, and (iv) entering into this Amendment does not violate any provision of any other agreement to which Licensee is bound.
6.6 Interpretation. This Amendment shall be construed according to its fair meaning as if prepared by both Parties to this Amendment. Headings us ed in this Amendment are provided for convenience only and shall not be used to construe meaning or intent.
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6.7 Counterparts. This Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes to be deemed t o be an original. All such counterparts shall together constitute but one and the same Amendment.
6.8 Electronic Execution. This Amendment may be executed electronically provided same complies with UETA and ESIGN using qualified third party providers s uch as AdobeSign or DocuSign.
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment on the dates specified below.
LICENSEE: CITY:
JUNIPER TRAILS, LLC, a California
limited liability company
By: ___________________________
Name: Alicia Albin
Title: Managing Member
CITY OF MURRIETA, a general law city
By: ___________________________
Cindy Warren, Mayor
ATTEST:
______________________________
Cristal McDonald, City Clerk
Approved as to form:
ALESHIRE & WYNDER, LLP
______________________________
Tiffany Israel, City Attorney
178
Juniper Trails
Temporary License Agreement Area
Murrieta Equestrian Center
Area
Attachment 2
179
CITY OF MURRIETA
City Council Meeting Agenda
Report
1/21/2025
Agenda Item No. 7.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Justin Clifton, City Manager
PREPARED BY: Cristina Davies, Public Information Officer SUBJECT:
Second Amendment to Goodsides, LLC Agreement for Videoing and Editing Services
RECOMMENDATION
Approve the Second Amendment to the Goodsides, LLC Agreement for video and editing services, increasing the not-to-exceed amount to $150,000, and extending the term of the agreement through June 1, 2026; and Authorize the City Manager to execute the Second Amendment to the Agreement.
PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Foster and promote an engaged, connected and caring community.
BACKGROUND
In January 2023, the City of Murrieta entered into an Agreement with Goodsides, LLC to provide quality video and editing services for City events. Goodsides’ commitment is to prioritize excellence, flexibility, and efficiency. Their seasoned production team is dedicated to delivering polished, impactful videos that resonate with diverse audiences and reflect Murrieta’spride and progress. Their production quality has proven to be effective at clearly communicating key City milestones and project information in an engaging way for residents and visitors to understand.
The original 2023 agreement had a not-to-exceed amount of $35,000. In January 2024, staff executed a First Amendment to the Agreement, extending the termination date to January 24, 2025, and increased the contract by $40,000, to a not-to-exceed amount of $75,000. Staff is requesting a Second Amendment to extend the termination date to June 1, 2026, as well as increasing the not-to-exceed amount to $150,000.
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Agenda Item No. 7.
FISCAL IMPACT
Funding for the video services has already been budgeted for Fiscal Year 2024/25 in account 1101400-63120 for $35,000. Funding for Fiscal Year 2025/26 will be included in the upcoming biennial budget.
ATTACHMENTS
1. Second Amendment to the Goodsides, LLC Agreement
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AMENDMENT TO THE AGREEMENT WITH
THE CITY OF MURRIETA AND CONSULTANT
Amendment No.: 2
Original Agreement Title (“Agreement”): The City of Murrieta and Goodsides, LLC Agreement Effective Date: January 25, 2023
Agreement Termination Date: January 24, 2025
Consultant Name: Goodsides LLC
Brief Description of Scope of Services (“Services”): Goodsides provides quality video and editing services for State of the City and City events.
This Amendment to the Agreement, made effective on the date ex ecuted by the City by and between the City of Murrieta, a Municipal Corporation, duly organized and existing under and by virtue of the laws of the State of California ("City"), and the above referenced Consultant with reference to the following facts which are acknowledged by each party as true and correct:
RECITALS
Whereas, City is a general law city, formed and existing pursuant to the provisions of the California Government Code.
Whereas, City and Consultant entered into an Agreement on the Effective Date set forth above for the Services.
Whereas, City and Consultant wish to amend the Agreement as further set forth herein.
Whereas, the Agreement was previously modified by the following prior amendments: 1
AMENDMENT
NOW, THEREFORE, it is agreed by and between the parties as follows:
1. The above recitals are true and correct.
2. The following terms of the Agreement are hereby amended to read as follows:
Section 3.1 of the Agreement is hereby amended in its entirety to read as follows:
“Term. The Agreement shall be from January 25, 2023, until June 1, 2026.”
Section 4.1 of the Agreement is hereby amended in its entirety to read as follows:
“Consideration. In consideration of the services to be performed by CONSULTANT for the CITY as set forth in Section 1, the CITY agrees to pay 182
01375.0001/937862.4 -2-
CONSULTANT per individual project at rates set within proposal, not-to-exceed a total cumulative fee of $150,000.00 (One hundred and fifty thousand dollars and Zero Cents) for the term of this Agreement.”
3. All other conditions of the Agreement shall continue in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to the Agreement to be executed on the dates set forth below.
Signature Page to Follow.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.
CITY:
CITY OF MURRIETA, a California municipal
corporation
By:
Choose an item.
ATTEST: Date:
Cristal McDonald, City Clerk
Date:
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Tiffany Israel, City Attorney
Date:
CONSULTANT:
Two corporate officer signatures required when
Contractor is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or
regulations applicable to Contractor’s business City.
By:
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01375.0001/937862.4 -3-
Name: Click or tap here to enter text.
Title: Click or tap here to enter text.
Date:
By:
Name:Click or tap here to enter text.
Title:Click or tap here to enter text.
Date:
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1/21/2025
Agenda Item No. 8.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Community Services Director
PREPARED BY: Brian Crawford, Senior Program Manager - Parks & Recreation SUBJECT:
Change Order for Construction Management Services with Anser Advisory for Tot Lot Improvements Phase 1
RECOMMENDATION
Approve a change order to Purchase Order P03688 with Anser Advisory Management LLC, in the amount of $49,660, for Construction Management Services related to the Tot Lot Improvements Project Phase 1; and Approve an additional budgetary appropriation for Capital Improvement Projects (CIPs) 22026, 22035, 22036, and 22038 from Park Land Development Impact Fees using Unassigned Fund Balance.
PRIOR ACTION/VOTE
On July 2, 2024, the City Council awarded a construction contract in the amount of $1,344,667.35 to Millsten Enterprises, Inc., for Tot Lot Improvement Project Phase 1 CIPs 22026, 22035, 22036, and 22038 (Vote: 5-0).
On June 20, 2023, the City Council awarded an On-Call Consulting Services Agreement with Anser Advisory (Vote: 4-0-1).
CITY COUNCIL GOAL
Coordinate and deliver responsive, effective community services.
BACKGROUND
Anser Advisory Management (Anser) is a consulting firm that performs project, construction, and labor compliance services through an on-call consulting agreement with the City.
In February 2023, staff requested that Anser provide a proposal for services related to each of the nine (9) sites included in two (2) phases of the Tot Lot Improvements projects. At the time, there was limited information about the level of effort needed for the design and construction portion of the projects and only preliminary estimates on what it would cost to construct each site.
The Tot Lot Improvements Project Phase 1 includes four (4) sites, each with its own Capital Improvement Program (CIP) Project number. All four (4) locations are projected to go over budget for construction CITY OF MURRIETA Printed on 1/16/2025Page 1 of 2
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Agenda Item No. 8.
Program (CIP) Project number. All four (4) locations are projected to go over budget for construction management-related services and require additional funding to close out each project thoroughly. Originally, the construction contractor was allowed one hundred (100) days to complete the project. However, there have been several unforeseen issues like playground equipment fitment issues, the need to add safety fencing to three of the four locations, incorrectly calculated quantities of soil export at three of the sites, and ADA access issues at Northstar Park. These issues will require adding an additional 50-60 days to complete the project, and the additional costs for construction consulting services provided by Anser are directly attributed to the additional number of construction days.
No amendments are necessary to the agreement with Anser, as services are utilized through the existing On- Call Agreement, which requires a proposal to be provided for each project.
FISCAL IMPACT
The above request will require a total increase in funding of $49,660 for Construction Management Services using Park Land Development Impact Fees (DIF) funds, as follows:
CIP Project Park Original Consulting Fee Addt’l Funding Requested Total 22026 Oak Terrace $ 18,544 $ 4,500 $ 23,044 22035 Palomar $ 19,438 $ 4,810 $ 24,248 22036 Northstar $ 35,956 $ 25,830 $ 61,786 22038 Monte Vista $ 27,656 $ 14,520 $ 42,176 $ 101,594 $ 49,660 $ 151,254
Park Land DIF does have available Unassigned Fund Balance to cover this budget appropriation.
ATTACHMENTS
1. Anser Change Order Proposal
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December 4, 2024
City of Murrieta – Community Services Dept.
Brian Crawford, Senior Program Manager
1 Town Square, Murrieta, Ca 92562
[email protected]
(951) 461-6047
REF: FEE PROPOSAL– ADDITIONAL CONSTRUCTION MANAGEMENT SERVICES FOR TOT LOT PHASE 1 PARKS (PO #P03688)
Dear Mr. Crawford,
Due to the increase in rates from Anser Advisory’s original on-call contract proposal, additional impacts we’ve seen at Monte Vista and Northstar parks, new site fencing for Monte Vista, Palomar and Oak Terrace and an additional 31 working days (currently) added to the original schedule for the Tot Lot Phase 1 Park projects, Anser respectfully requests a change order be provided to complete Construction Management services on the referenced Purchase Order P03688.
With City approval, Anser plans to continue their initial scope of work required in the original proposal to assist the City through the current Final Completion date of February 19, 2025. Original / continued services include, but not limited to:
• Weekly Coordination Meetings
o Generate Agenda’s / Minutes and run the Weekly Coordination Meetings • Weekly site review meetings for pictures, updates with the Owner and Contractor, etc. (2 days / week) • Extensive review and processing of project correspondence and documentation o Future Submittals
o Future RFI’s
o Future COR’s
o Future Pay Applications
o Monthly Schedule Updates review
• Any future and final punch walk meetings
o Generate punch lists for the Owner and Contractor o Correspondence between City and Contractor to ensure that all punch items are complete • Closeout / Warranty Documentation
o High level review of any outstanding O&M Manuals and Warranties for compliance o Processing O&M Manuals & Warranties from Contractor o Review of internal as-builts in comparison of that which has been provided by the Contractor o Any potential Closeout Submittal meetings
• Pay Application and Closeout Change Order (to zero out bid items) o Review and processing the final payment
o Review and processing a final closeout change order to zero out bid items (if that is a route COA would like to take)
The proposed services provided will be a continuation of the existing agreement for Purchase Order P03688 – CM Services. There are no changes to the scope of services resulting in this change.
City of Murrieta 1 Anser Advisory
Construction Management Services for Tot Lot Phase 1 Parks 187
Fee Schedule
Anser Advisory
Construction Management Contract Budget Estimate
If the above fee proposal is acceptable to the City, please process a contract work order for execution so CM services may continue through the completion of the project.
Should you have any questions, please do not hesitate to contact me via the information provided below.
Sincerely,
Tyson Atwood, PE, QSD
Senior Vice President/Managing Director
300 Spectrum Center Drive, Suite 1400
Irvine, CA 92618
[email protected] | 805.459.7697
City of Murrieta 2 Anser Advisory
Construction Management Services for Tot Lot Phase 1 Parks WEEK ENDING: Nov-24 Dec-24 Jan-25 Feb-25 Hours Rate Total $ Adam 24 20 20 64 $185.00 $11,840.00
Rachael 10 6 6 22 $100.00 $2,200.00
Jackie 2 1 1 4 $120.00 $480.00
$14,520.00
Adam 10 4 4 18 $185.00 $3,330.00
Rachael 6 2 2 10 $100.00 $1,000.00
Jackie 2 2 4 $120.00 $480.00
$4,810.00
Adam 40 40 30 110 $185.00 $20,350.00
Rachael 20 20 10 50 $100.00 $5,000.00
Jackie 2 2 4 $120.00 $480.00
$25,830.00
Adam 20 20.0 $185.00 $3,700.00
Rachael 8 8.0 $100.00 $800.00
Jackie - $120.00 $0.00
$4,500.00
Total Amendment $: $49,660.00
Total $ / Park:
Oak Terrace Park
Northstar Park
Palomar Park
Monte Vista Park
Total $ / Park:
Total $ / Park:
Total $ / Park:
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CITY OF MURRIETA
City Council Meeting Agenda
Report
1/21/2025
Agenda Item No. 9.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Scott Agajanian, Economic Development Director
PREPARED BY: Martha Samaniego, Management Analyst
SUBJECT: ..title
Purchase of Electric Vehicle Charging Stations
RECOMMENDATION
Approve the purchase of two (2) electric vehicle (EV) charging stations from Beam Global for a total amount of $177,695.05;
Authorize exemption from bidding requirements;
Amend the Fiscal Year 2024/25 Operating and Capital Improvement Budgets; and Authorize the City Manager to execute all related purchase documents.
PRIOR ACTION/VOTE
On June 4, 2024, the City Council authorized the City Manager to accept an Equipment Rebate Voucher from the U.S. Department of Energy for the Energy Efficiency and Conservation Block Grant Program in the amount of $157,040 for electric vehicle (EV) charging stations for placement at various City locations (Vote: 5-0).
CITY COUNCIL GOAL
Aggressively pursue economic development.
BACKGROUND
The City of Murrieta (City) applied for the Energy Efficiency and Conservation Block Grant (EECBG) in August 2023 and was awarded the grant in April 2024. The grant funding may be utilized for financing, purchasing, and installing energy efficiency, renewable energy, and zero-emission transportation equipment and infrastructure.
The timeline for expending the grant funds is two years, and the City may request an extension if needed. Staff recommends using the grant funds toward the cost of the purchase and delivery of two (2) solar-powered electric vehicle (EV) charging stations to be placed at Town Square Park/City Hall and the Murrieta Innovation Center. This solar-powered EV charging infrastructure will support residents and visitors who already own electric vehicles and help encourage other residents and businesses to purchase and use zero-emission vehicles. EV infrastructure at public locations helps to eliminate “range anxiety” for EV users. The City is uniquely located at the intersection of the I-15 and I-215 freeways and has higher-than-average EV vehicles CITY OF MURRIETA Printed on 1/16/2025Page 1 of 3
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Agenda Item No. 9.
uniquely located at the intersection of the I-15 and I-215 freeways and has higher-than-average EV vehicles per capita.
One solar-powered EV charging station will be located at the soon-to-be-completed Town Square Park parking lot, and the other will be located at the Murrieta Innovation Center. Both will be accessible to the general public as part of the grant requirement.
A Request for Proposal (RFP) was not conducted, as the solar-powered charging stations are considered a sole source. The patented EV ARC™ charging system is the world’s first and only fully autonomous, transportable, solar-powered electric vehicle charging system. Designed, engineered, and manufactured in the United States, Beam Global, a San Diego-based business, is the only vendor capable of producing and providing the patented EV ARC™ solution. The EV ARC™ is a unique solution with no direct competitors.
Attachment 1 provides more information on the specifications of these chargers.
The Beam EV ARC chargers are solar-powered and freestanding, with no installation required. Once the City sets up the software, the charging stations can be deployed and available for immediate use. Once the stations are delivered, the City has the discretion to relocate them, though this could cost up to $1,500 or require the use of a specialized trailer. The price includes shipping and a one-year warranty. Additional warranties are available.
Adding EV charging infrastructure will help the City toward its greenhouse gas reduction goals, as stated in the table below:
FISCAL IMPACT
The cost of acquiring two (2) solar-powered electric vehicle (EV) charging stations is $177,695.05. This purchase will not impact the General Fund, as the project will be fully funded through the grants identified below.
· The City Council previously approved the establishment of the revenue and expenditure budgets for acceptance of the U.S. Department of Energy - Energy Efficiency and Conservation Block Grant funds, amounting to $157,040.
· Staff recommends amending the Fiscal Year 2024/25 Operating and Capital Improvement Budget to allocate South Coast Air Quality Management District (AQMD) grant funds, using $20,655.05 from the restricted fund balance.
As part of the annual User Fee Schedule update, the City will establish a fee for use of these chargers based on the cost of maintenance, merchant services, and equipment replacement.
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ATTACHMENTS
1. Quote for Beam EV ARC
2. Justification of Sole Source Form
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BeamForAll.com
[email protected]
+1 858-799-4583
Beam Global
5660 Eastgate Drive
San Diego, CA 92121
Your EV ARC™ is an American-made product and will be
fabricated in our San Diego, California facility.
EV ARC™ systems are capable of generating and storing enough clean, solar electricity to charge up to 265 e-miles in a single day.
Thanks to its battery storage, it can charge electric vehicles day or night, or even during periods of cloudiness, and is also an excellent source of emergency/alternative power. The electricity produced is clean and renewable, reducing 100% of greenhouse gas emissions from ICE vehicles and electric vehicles powered from the utility grid.
The EV ARC™ is deployed in minutes without any construction or electrical work and does not require civil or electrical engineering, foundations, trenching, electrical connections or upgrades. It will produce energy reliably and consistently but will not generate a utility bill or fail to operate because of a black out or other utility grid failure.
It’s no wonder that Google, the City of New York, the State of California and many others across the U.S. and internationally trust the EV ARC™ product line to charge their electric vehicles.
The patented EV ARC™ charging system is the world’s first and only fully autonomous, transportable, solar-powered electric vehicle charging system. Designed, engineered and manufactured in the U.S., the EV ARC™ measures 7.5' X 18' at the base and fits inside a standard parking space without reducing available parking while being ADA compliant.
EV ARC Product Description™
(858) 201-5530Phone
[email protected]
Jason KellerPrepared By
One Town Square, 24601 Jefferson Ave
Murrieta, CA 92562
Ship To
City of MurrietaShip To Name
One Town Square, 24601 Jefferson Ave
Murrieta, CA 92562
Bill To
City of MurrietaBill To Name
(951) 461- 6001 ext. 6219Phone
[email protected]
Management AnalystTitle
Andree KinneyContact Name
City of MurrietaCustomer Name
11/7/2024Created Date
00001759Quote Number
Beam EV ARC Proposal via CA DGS Contract #1-22-61-16™
Customer Details
Billing and Shipping
Your Clean Mobility Expert
192
BeamForAll.com
[email protected]
+1 858-799-4583
Beam Global
5660 Eastgate Drive
San Diego, CA 92121
EV ARC Diagram™
193
BeamForAll.com
[email protected]
+1 858-799-4583
Beam Global
5660 Eastgate Drive
San Diego, CA 92121
Applicable sales tax will be billed upon invoicing
Payment Terms: Net 30 days
ONE-PAY LEASE OPTION: This proposal includes an option to lease the quoted EV ARC™ Equipment, which includes the EV ARC™ Base Model, EV charger, and the add-ons of battery storage upgrades, Emergency Power Panel, AC/USB outlets, Grid Connect and RMMS connectivity, for a five-year term at a cost of 60% of the Total Equipment Price. Total Equipment Price excludes Shipping & Handling, Sales Tax, Beam Stow Kit, ARC Mobility™ Trailer, which will be invoiced at the amounts presented in this proposal. The lease option includes a 5-year warranty on the EV ARC™ Base Model and add-ons, and a 1-year warranty on the EV charger. The One-Pay Lease amount of 60% of the Total Equipment Price will be invoiced upon Equipment delivery on payment terms of net 30 days. Beam Global will retain title to the Equipment, and the Customer is responsible for insuring the Equipment during the term of the lease. The lease will expire five years from the date of Equipment 2/7/2025Expiration Date
$177,695.05Grand Total
$14,021.33Tax
$0.00Shipping and
Handling
$163,673.72Total PriceShipping & Handling is FOB Destination and includes Beam Team performing un-load / un-stow of equipment. Customer may need a 12K capacity forklift onsite upon delivery; to be determined when delivery date is scheduled.
EV ARC Pricing™
Product Product Code Product Description Quantity List Price Total Price Beam EV
ARC™ with
ChargePoint™
dual plug
charger
ARC2020-CP4023
EV ARC™ 2020, 4.3kW solar array, 22kWh expandable
storage, BeamTrak™, Chargepoint CT4023 dual-plug
networked charger, dual J1772 connectors. 12 months
ChargePoint Network Operating System (NOS) included.
CLIN #1101, includes 2% CA DGS Contract discount.
2.00 $70,300.30 $140,600.60
Beam Boost
battery
upgrade
BOOST40
Beam Boost upgrade for EV ARC™ 2020 systems increases
battery storage to 43 kWh.
CLIN #1201, includes 2% CA DGS Contract discount.
2.00 $9,821.56 $19,643.12
Remote
Monitoring
and
Management
System
(RMMS)
5-Year
Extension
RMMS-5
Five-year (5 year) prepaid plan for the Remote Monitoring and Management System (RMMS) provides login access to view
data and status of the EV ARC system. 4G LTE and WiFi
connections enable remote monitoring of solar energy
production, battery status, energy output, energy use session data. Remote performance assessment and troubleshooting can prevent service calls. Service is included for the 1st twelve (12) months with purchase of an EV ARC™ system; 5-year
prepaid plan discounts the annual cost.
CLIN #1301, includes 2% CA DGS Contract discount.
2.00 $1,715.00 $3,430.00
Manufacturer
Warranty - 1
Year
WARRANTY-MFGR-01 Manufacturer Warranty - First year included 2.00 $0.00 $0.00 Totals
194
BeamForAll.com
[email protected]
+1 858-799-4583
Beam Global
5660 Eastgate Drive
San Diego, CA 92121
https://caleprocure.ca.gov/PSRelay/ZZ_PO.ZZ_CTR_SUP_CMP.GBL?Page=ZZ_CTR_SUP_PG&Action=U&SETID=STATE&CNTRCT_ID=1-22-61-16 delivery. At that time, the Customer will have the option to either renew the lease for another 5 years at 60% of the Total Equipment Price; or purchase the Equipment at 65% of the Total Equipment Price; or have Beam Global pick up and remove the Equipment for a recycling fee of 10% of the Total Equipment Price. The One-Pay Lease program is offered through March 31, 2025. Customer agrees and acknowledges that the terms set forth above are only a summary of the terms and conditions of the lease agreement, and any lease of EV ARC™ Equipment will not be effective until Customer and Beam Global have entered into a definitive lease agreement for the quoted EV ARC™ Equipment. To get started with the One-Pay Lease, contact your Clean Mobility Expert on this proposal.
California DGS Contract Link
195
City of Murrieta
JUSTIFICATION OF SOLE SOURCE/
SOLE BRAND REQUEST
SOLE SOURCE: Item is manufactured and/or only distributed by one vendor.
SOLE BRAND: Bids will be solicited for the requested brand only.
VENDOR/BRAND NAME: Beam Global
BRIEF DESCRIPTION OF PURCHASE: Beam Global offers 100% clean, renewable energy, is emissions- free, and operates off the grid charging stations .
Please answer all questions in detail in order to prevent delays in evaluation.
1. Why is the acquisition restricted to this good/service/supplier? (Explain why the acquisition cannot be competitively bid.)
Beam Global (Nasdaq: BEEM), a San Diego-based business, is the only vendor capable of producing and providing the patented EV ARC™ solution. The EV ARC™ is a unique solution with no direct competitors.
The EV ARC will have two Chargepint EV station heads attached to two ARC platforms, allowing the City to continue to obtain revenue from the EV stations without any electrical expenses associated with the EV ARC. Beam Global is the only manufacturer in the industry. Yay produces a patented 100% clean, renewable energy, is emissions-free, and operates off-the-grid charging stations.
2. What are the consequences of not purchasing the good/service or contracting with the proposed supplier? There's no other opportunity to implement a 100% clean, renewable energy system that is emissions- free and operates off-the-grid charging stations. The City can decide to implement an EV charging station on the grid, but this requires funding for an infrastructure that takes 18- 24 months and requires purchasing individual EV stations. In this case, no EV construction for an infrastructure is needed, and the City will also save on the SCE Electric bill.
3. What market research was conducted to substantiate no competition, including evaluation of other items considered? (Provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department concluded that such alternatives are either inappropriate or unavailable. The names, addresses and phone numbers of suppliers contacted and the reasons for not considering them must be included or an explanation of why the survey or effort to identify other goods/services was not performed.)
Beam Global is the only vendor capable of producing and providing the patented EV ARC™ solution, which is 100% clean, renewable energy, emissions-free, and operates off-the-grid charging stations.
Additional local distributors of 100% clean, renewable energy, emissions-free, and operated off-the-grid charging stations have not been identified after thorough research.
4. How was the price offered determined to be fair and reasonable? (Explain what the basis was for comparison and include cost analyses as applicable.)
Beam Global pricing has been determined to be fair and comparable when equated to other EV infrastructures and cost of SCE monthly billing.
5. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
The City will reduce the cost of SCe electrical bills for our EV stations, roughly 30k in annual SCE bills.
Also, the City will not be required to build infrastructure for these off-grid EV stations.
I am aware of the City of Murrieta requirements for competitive bidding established in the municipal code Chapter 3.08 Purchasing System. As an authorized department representative, I have gathered the required technical information and have made a concentrated effort to review comparable/equal equipment.
Docusign Envelope ID: BFD8713F-9A0C-4D7B-BAC4-9925E653AFA1 196
Requestor: __________________________ ______________ _________________ Print & Sign Department Date
Department Head: _________________________________ _________________ Print & Sign Date
PURCHASING: _________________________________ _________________ Print & Sign Date
Docusign Envelope ID: BFD8713F-9A0C-4D7B-BAC4-9925E653AFA1 December 19, 2024Economic Development
December 19, 2024
December 19, 2024
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CITY OF MURRIETA
City Council Meeting Agenda
Report
1/21/2025
Agenda Item No. 10.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Cynthia Rockwell, Purchasing & Contracts Coordinator SUBJECT:
Approval of an Agreement with Hinderliter, de Llamas and Associates (HdL) for Sales Tax Recovery Services
RECOMMENDATION
Approve a two-year Agreement with Hinderliter, de Llamas (HdL) for Sales Tax Recovery Services, retroactively approving the date of the Agreement to January 1, 2025; Authorize the exemption from bidding requirements; and
Authorize the City Manager to execute the Agreement.
PRIOR ACTION/VOTE
On December 4, 2018, the City Council adopted Resolution No. 18-4012, authorizing a three-year Agreement with Hinderliter, de Llamas for sales tax recovery services from January 1, 2019, through December 31, 2022, with two (2) additional one (1) year terms (Vote: 3-0-2).
On January 15, 2019, the City Council adopted Resolution No. 19-4026 authorizing a First Amendment to the Agreement with Hinderliter de Llamas to increase the scope of services necessitated by expanding tax recovery services to include Measure T (Vote: 4-0-1).
On November 19, 2002, the City Council adopted Resolution No. 02-1107, authorizing examination of the City’ssales and use tax records by Hinderliter, de Llamas, and Associates to perform sales tax recovery services on behalf of the City (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
HdL has provided sales tax recovery services to the City of Murrieta (City) since the first agreement wasCITY OF MURRIETA Printed on 1/16/2025Page 1 of 2 powered by Legistar™
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Agenda Item No. 10.
HdL has provided sales tax recovery services to the City of Murrieta (City) since the first agreement was awarded on October 15, 2002. The services provided include economic analysis of the City’ssales tax trends, sales tax revenue forecasting, and ongoing sales tax audit recovery services. These audit services identify allocation errors and report formula changes, generating previously unrealized tax income for the City.
HdL also provides the City business license software and economic development consulting services under separate agreements.
The City’smost recent contract with HdL expired on December 31, 2024. Due to the expiration, staff seeks to enter into a new Agreement with HdL for two (2) years, with a term of January 1, 2025, through December 31, 2026. Staff was unable to bring this report and agreement extension to the City Council sooner, so the recommendation includes a request to approve the agreement retroactively to January 1, 2025.
This term of the contract will allow staff the appropriate time to conduct a formal request for proposals and select a vendor through equitable and transparent practices in accordance with the City’s Procurement Policy.
Section 3.08.280 of the Municipal Code outlines competitive bidding procedures, and requirements may be dispensed when the City Council finds that adherence to the procedures in this chapter would be inefficient, impractical, and unnecessary.
FISCAL IMPACT
Annual costs for the sales tax audit and recovery services are charged based on a monthly fee and a percentage of all new sales and/or use tax revenue received by the City as a result of audit or recovery work performed by the consultant, which is billed quarterly. The estimated cost per year of the Agreement is $25,000, bringing the not-to-exceed amount of the contract to $50,000.
The sales tax audit recovery service is expected to generate approximately $97,466 in additional sales tax revenue.
This annual expenditure is funded from the Contract Services General Ledger Account (1102600-60480) and has been budgeted accordingly in the Fiscal Year 2024/25 Operating Budget. The budget for the remaining term of the Agreement (July 2025-December 2026) will be included in the upcoming biennial budget.
ATTACHMENTS
1. Proposed Agreement with Hinderliter, de Llamas and Associates CITY OF MURRIETA Printed on 1/16/2025Page 2 of 2
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AGREEMENT FOR PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)
Project Name/Description (“Project”):Sales and Use Tax and Transactions Tax Services Contract Number:
Consultant Name (“Consultant”):Hinderliter, de Llamas and Associates Consultant Business Type:Corporation
Consultant Address:120 S State Blvd., Brea, CA. 92821
Consultant Representative Name and Title (“ Consultant Representative”):Maria Soto-Sanchez, Contract Manager
Consultant Representative Work Phone and Email:714.879.5000 ext. 1029 Termination Date:December 31, 2026
Total Not-To-Exceed Contract Amount (“Contract Sum”):$50,000.00 City Department Contact (“Department Contact”):Finance Department Department Contact Work Phone and Email:951.461.6090 [email protected] Is Federal Funding Being Used to Fund Any Part of The Project (Yes/No):No
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RECITALS
The City desires to contract with a Consultant to provide professional services as more further set forth herein.
The City has utilized the services of HdL since 2018.
The Agreement expired on December 31, 2024.
Staff would like to continue with HdL’s services for two more years. During that time, an RFP will be circulated.
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AGREEMENT FOR PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)
THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into as of the effective on the date executed by the City by and between CITY OF MURRIETA, a California municipal corporation (“ City”) and (“ Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.” In consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:
ARTICLE 1. SERVICES OF CONSULTANT
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “ Scope of Services ” attached hereto as Exhibit A and incorporated herein by this reference, which may be referred to herein as the “ services” or “ work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants: a) it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement b) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; c) all materials used for services will be both of good quality as well as fit for the purpose intended; and, d) Consultant shall follow the highest professional standards and practices in performing the services required hereunder.
1.2 Consultant’s Proposal. The Scope of Services shall include the scope of services or work included in Consultant’s proposal or bid , which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal or bid, and this Agreement, the terms of this Agreement shall govern. No other terms and conditions from Consultant’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.
1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered. City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Consultant to comply with this Section.
1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.
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1.5 Familiarity with Work. By executing this Agreement, Consultant represents and warrants Consultant: a) has thoroughly investigated and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement.
1.6 Software and Computer Services. If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Consultant represents and warrants that it is familiar with and/or has inspected City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Consultant under this Agreement is compatible, and shall be fully functional, with such infrastruc ture, equipment, computer system and software of City. Consultant acknowledges that City is relying on this representation by Consultant as a material consideration in entering into this Agreement.
1.7 Prevailing Wages. If services include any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, section 16000 et seq. , and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.
1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit B and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern.
ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT
2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the rates specified in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference . The total compensation for all work, including reimbursement for actual expenses, shall not exceed the Contract Sum set forth above . Compensation may include reimbursement, for actual and necessary expenditures , if both are specified in the Schedule of Compensation, as well as approved by City in advance.
2.2 Invoices. Unless some other method of payment is specified in Exhibit C, Schedule of Compensation, in any month in which Consultant wishes to receive payment, no later than the first business day of such month, Consultant shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of this 203
Agreement. Except as provided in Section s 7.3, 7.4 and 7.5, City shall pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) days, and City will use its best efforts to make payment no later than forty -five (45) days, from the submission of an invoice in an approved form. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. Each invoice is to include (unless otherwise specified by City) : 1) line items for all personnel describing the work performed, the number of hours worked, and the hourly rate; 2) line items for all materials and equipment properly charged to the Services; 3) line items for all other approved reimbursable expenses claimed, with supporting documentation ; and 4) l ine items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.
ARTICLE 3. PERFORMANCE SCHEDULE
3.0 Time of Essence. Time is of the essence in the performance of this Agreement.
3.1 Term. The Agreement shall commence and become effective on January 1, 2025, and will continue until the Termination Date. This Agreement may be extended for up to two, additional one-year periods upon the mutual agreement in writing of both parties.
Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of any ongoing services, which shall be no later than the Termination Date set forth above.
Notwithstanding the foregoing, the Indemnification and Insurance provisions set forth in Article 5 shall survive the termination of this Agreement.
3.2 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed from City and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit D and incorporated herein by this reference.
3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify City in writing of the causes of the delay. City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of City such delay is justified. City’s determination shall be final 204
and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.
ARTICLE 4. COORDINATION OF WORK
4.1 Representative of Consultant. The Consultant Representative is authorized to act on Consultant’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City.
4.2 Department Contact for City . The Department Contact (or other person designated by the City Manager) shall be the primary person on behalf of City responsible for the administration of the Agreement. It shall be Consultant’s responsibility to assure that the Department Contact is kept informed of both the progress of the performance of the services as well as any decisions which must be made by City.
4.3 Approvals from City. City approvals or actions, pursuant to the authority of this Agreement, are to be made (unless otherwise specified) either by the Contract Manager, City Manager or by their delegate as provided for in writing.
4.4 Independent Co ntractor. Neither City , nor any of its officers, employees or agents, shall have any control over the manner or means by which Consultant , or its officers, employees, agents or subcontractors , perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it, or any of its officers, employees, agents or subcontractors, are officers, employees or agents of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.
Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant represents and warrants that the personnel used to provide services to City pursuant to this Agreement shall at all times be under Consultant’s exclusive control and direction.
No City employee benefits shall be available to Consultant, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement.
City shall not be liable for compensation or indemnification to Consultant , its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder. In the event that Consultant or any officer, 205
employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System, to be classified as other than an independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant , or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.
4.5 Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Therefore, without express written approval of City, Consultant shall not contract with any other City to perform in whole or in part services required hereunder without express written approval of City , and n either this Agreement nor any interest herein may be transferred or assigned. No approved transfer shall release Consultant, or any surety or insured of Consultant, of any liability hereunder without express written consent of City.
ARTICLE 5. INSURANCE AND INDEMNIFICATION
5.1 Insurance Coverages. Prior to commencement of any services under this Agreement, and without limiting Consultant’s indemnification obligation to City, Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, for the duration of the Agreement, primary policies of insurance of the type and amounts set forth in the “Insurance Requirements” attached hereto as Exhibit E and incorporated herein by this reference.
5.2 Indemnification.
(a) General Obligations. Consultant agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “ Indemnitee” and collectively, “ Indemnitees”) against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “ Claims or Liabilities ”) that may be asserted or claimed by any person, firm or City arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or City for which Consultant is legally liable (each an “Indemnitor” and collectively, “ Indemnitors”), or arising from Indemnitors’ reckless or willful misconduct, or arising from Indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: 1) Consultant will defen d any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including 206
legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Consultant will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom.
(b) Further Provisions. The indemnity obligation herein shall be binding on successors, assigns and heirs of Consultant and shall survive termination of this Agreement. Consultant shall incorporate similar indemnity agreements as provided herein with its subcontractors, and if Consultant fails to do so Consultant shall be fully responsible to indemnify City hereunder therefor. Failure of City and/or City Parties (collectively “City” for solely this Section 5. 2(b)) to monitor compliance with any of the indemnification provisions herein shall not be a waiver hereof. The indemnification provisions herein do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful misconduct, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professi onal. The indemnification provided herein includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services hereunder. Payment of invoi ces by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between Consultant and City, as to whether liability arises from the sole negligence or willful misconduct of City, Consultant will be o bligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct. Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. (c) Pursuant to the full language of California Civil Code §2782, Design Professionals agrees to indemnify, including the cost to defend, City and its officers, officials, employees, and volunteers from and against any and all claims, demands, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of Design Professional and its empl oyees or agents in the performance of services under this contract, but this indemnity does not apply to liability for damages arising from the sole negligence, active negligence, or willful acts of the City; and does not apply to any passive negligence of the City unless caused at least in part by the Design Professional. The City agrees that in no event shall the cost to defend charged to the Design Professional exceed that professional’s proportionate percentage of fault. This duty to indemnify shall not be waived or modified by contractual agreement or acts of the parties.
5.3 Professional Liability. When the law establishes a professional standard of care for Consultant’s services, to the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless Indemnitees against, and will hold and save them and each of them harmless from , whether actual or threatened, any and all Claims and Liabilities, consistent with all obligations provided for in this Section
5.3, to the extent same are caused in whole or in part by any negligent or wrongful 207
act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services under this Agreement.
ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION
6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (“books and records ”) as shall be necessary to perform the services required by this Agreement and enable City to evaluate the performance of such services. Any and all such books and records shall be maintained in accordance with generally accepted accounting principles, shall be complete and detailed, and shall be readily accessible . City shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts. Such books and records shall be maintained for a period of three (3) years following completion of the services hereunder. City shall have access to such books and records in the event any audit is required. Consultant shall fully cooperate with City in providing access to any and all Consultant records and documents if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.
6.2 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“ documents and materials ”) prepared by Consultant, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership , use, reuse, or assignment of the documents and materials hereunder. Consultant may retain copies of such documents and materials for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents and materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, with respect to any Consultant documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City.
6.3 Confidentiality and Release of Information. All information gained or work product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from City. Consultant, its officers, employees, agents or subcontractors, shall not, without prior wri tten authorization from City or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other 208
information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant immediately gives City notice of such court order or subpoena. If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. As concerning, r egarding or related to, in any way, this Agreement and the work performed thereunder: a) Consultant shall immediately notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admiss ions or other discovery request, court order or subpoena from any party ; b) City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding; and, c) Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant , however, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Riverside, State of California.
7.2 Suspension, or Termination, Prior to Expiration of Term. This Section shall govern any termination of this Agreement except as specifically provided in Section
7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any portion hereof, at any time, for any reason, with or without cause, upon ten (10) days’ notice to Consultant, except that where termination or suspension is due to the fault of Consultant, the period of notice may be such shorter time as determined b y City. Upon receipt of any notice of termination or suspension, Consultant shall immediately cease all services hereunder, unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2. 2, Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the Schedule of Compensation, or such a s may be approved by City, except as provided in Section 7.5. In event of termination , or su spension, 209
without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.
7.3 Default of Consultant and Opportunity to Cure . In the event that Consultant is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively t en (10) days, but may be extended, or reduced, if circumstances warrant, as determined by City. During the period of time that Consultant is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices , without liability for interest. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default by conclusion of noticed timeframe , City may immediately both terminate this Agreement with notice to Consultant as well as pursue the remedy in Section 7.4, without prejudice to any other rem edy to which City may be entitled at law, in equity or under this Agreement . Any failure on the part of City to give notice of Consultant’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.
7.4 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such dama ges), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed City therefor.
7.5 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City m ay be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed b y Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.
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7.6 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non -defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non -compliance with any requirement of this Agreement imposes n o additional obligations on City nor does it waive any rights hereunder. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.
7.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
7.8 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.
7.9 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether lega l or equitable, shall be entitled to reasonable attorneys ’ fees. Attorneys’ fees shall include attorneys ’ fees on any appeal, and a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, consultants’ fees, taking depositions and discovery and all other necessary costs the court allows which are incurred in such 211
litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.
ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION
8.1 Non-liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.
8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performan ce of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of City. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. City, in its sole discretion, shall determine the existence of a conflict of interest and may terminate this Agreement in the event such a conflict of interest exists upon sending Consultant written notice describing the conflict. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects their financial interest or the financial interest of any corporation, partnership or association in which they are, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, r eligion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.
ARTICLE 9. MISCELLANEOUS PROVISIONS
9.1 Notices. Any notice or other communication either Party desires or is required to give to the other Party or any other person in regards to this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the Uni ted States Mail, certified mail, postage prepaid, return receipt requested, in the case of 212
City addressed to City Clerk at City of Murrieta, 1 Town Square, Murrieta California 92562, and in the case of Consultant, to the person(s) at the address designated on the cover page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy -two (72) hours from the time of mailing if mailed as provided in this Section.
9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement , headings used, or any other rule of construction which might otherwise apply.
9.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument.
9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties as to the Agreement . It is understood that there are no oral agreements between the Parties hereto affecting this Agreement, and this Agreement supersedes and cancels any and all prior and contemporaneous negotiations, arrangements, agreements and understandings, if any, between the Parties, concerning this Agreement, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Consultant and by City.
9.5 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.
9.6 No Undue Influence. Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the awar d of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to remedies in Section 7.4 and any and all remedies at law or equity.
9.7 Corporate Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, 213
(iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.
9.8 Federal Funding. If federal funding is being utilized to fund any part of the Project, as indicated on the Cover Page of this Agreement, the terms of Exhibit F are hereby incorporated herein by this reference. If no federal funding is being utilized, Exhibit F may be omitted.
[SIGNATURES ON FOLLOWING PAGE]
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01375.0007/1043017.2 -15-
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.
CITY:
CITY OF MURRIETA, a California municipal
corporation
By:
ATTEST: Effective Date:
Cristal McDonald, City Clerk
Date:
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Tiffany Israel, City Attorney
Date:
CONSULTANT:
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chair person of the Board,
President or any Vice President; and 2) Secretary, any
Assistant Secretary, Chief Financial Officer or any
Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or
regulations applicable to Consultant’s business City.
By:
Name:
Title:
Date:
By:
Name: enter text.
Title:
Date:
215
01375.0007/1043017.2
EXHIBIT "A"
SCOPE OF SERVICES
I. Consultant will perform the following Services:
See EXHIBIT A-1
II. In addition to any other requirements of this Agreement, during performance of the Services, Consultant will keep the City appraised of the status of performance by delivering the following status reports:
N/A
III. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.
IV. Consultant will utilize the following personnel to accomplish the Services:
Not designated
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1248933.1 Page 1 of 5
EXHIBIT A-1
SERVICES – Sales and Use Tax
1. Sales and Use Tax and Economic Analysis/Forecasting Services/Reports
1.1. Establish a special database identifying the name, addre ss, and quarterly allocations of all sales tax producers within the City. This database will be utilized to generate special reports to City on major sales tax produc ers by rank and category, sales tax activity by categories, or business districts, identification of reporting aberrations, and per capita and outlet comparisons with regional and statewide sales.
1.2. Provide periodic updated reports to City identifying changes in sales by individual businesses, business groups and categories, and by geographic area. These reports may include, without limitation, quarterly aberrations due to State audits, fund transfers, and receivables, along with late or double payments, and quarterly reconciliation worksheets to assist with budget forecasting.
Consultant shall meet quarterly by in person or virtually with City.
1.3. Shall additionally provide following each calendar quarter a summary analysis for City to share with Council Members, Chamber of Commerce, other economic development interest groups and the public that analyze City’s sales tax trends by major groups and geographic areas without disclosing confidential individual tax records.
1.4. Establish a special database with California Department of Tax and Fee Administration (“CDTFA”) registration data for businesses within applicable district boundaries holding seller’s permit accounts.
1.5. Periodically license for the limited, non-exclusive, non-transferable use by City’s staff certain of Consultant’s web-based sales, use and/or transactions tax program(s) containing sellers permit, registration, allocation and related information for business outlets within City’s jurisdiction registered with the CDTFA.
1.6. Provide periodic updated reports endeavoring to identify and assist with budget forecasting (i) changes in allocation totals by individual businesses, business groups and categories, and (ii) aberrations due to State audits, fund transfers, and receivables, along with late or double payments.
2. Allocation and Audit Recovery Services
2.1. Conduct (when mutually agreed with City) initial and on -going sales and use tax audits of businesses to help identify and correct distribution and allocation errors, and to proactively affect favorable registration, reporting or formula changes thereby generating previously unrealized sales and use tax income for the City and/or recovering misallocated tax from registered taxpayers.
Common errors that will be monitored and corrected include but are not limited to: transposition errors resulting in misallocations; erroneous consolidation of multiple outlets; formula errors ; misreporting of “point of sale” to the w rong location; delays in reporting new outlets; misallocating use tax payments to the allocation pools or wrong jurisdiction; and erroneous fund transfers and adjustments.
2.2. Initiate contacts with the CDTFA and sales management and accounting officials in companies that have businesses where a probability of error exists to endeavor to help verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner.
2.3. Prepare and submit to the CDTFA information for the purpose of correcting any identified allocation errors, and follow-up with individual businesses and the CDTFA to promote recovery by the City of back or prospective quarterly payments that may be owing. 217
1248933.1 Page 2 of 5
2.4. If, during the course of its audit, Consultant finds businesses located in the City’s jurisdiction that are properly reporting sales and use tax but have the potential for modifying their operation to provide an even greater share to City, Consultant may so advise City and collaborate with those businesses and City to encourage such changes.
SERVICES – Transactions Tax Services
3. Transactions Tax and Economic Analysis/Forecasting Services/Reports
3.1 Consultant shall establish a database containing all applicable Department of Tax and Fee Administration (CDTFA) registration data for each business within the Measure “T” District boundaries holding a seller’s permit account. Said database shall also identify the quarterly transactions and use tax allocations under each account for the most current and previous quarters where available.
3.2 Consultant shall provide updated reports each quarter identifying changes in allocation totals by individual businesses, business groups and by categories. Quarterly aberrations due to State audits, fund transfers, and receivables, along with late or double payments, will also be identified.
Quarterly reconciliation worksheets to assist finance officer with budget forecasting will be included.
3.3. Consultant shall advise and work with CITY Staff on planning and economic questions related to maximizing revenues, preparation of revenue projections and general information on transactions and use tax questions.
3.4. Consultant shall make available to CITY the HdL proprietary software program and Measure “T” database containing all applicable registration and quarterly allocation information for CITY business outlets registered with the Department of Tax and Fee Administration. The database will be updated quarterly.
4. Deficiency/Allocation Reviews and Recovery
4.1. Consultant shall conduct on-going reviews to identify and correct unreported transactions and tax payments and distribution errors thereby generating previously unrealized revenue for the City.
Reviews shall include:
4.1.(a) Comparison of county-wide local tax allocations to transactions tax for brick and mortar stores and other cash register -based businesses, where clearly all transactions are conducted on -site within the Measure “T” City boundaries, and therefore subject to transactions tax.
4.1.(b) Review of any significant one-time use tax allocations to ensure that there is corresponding transaction tax payments for taxpayers with nexus within the City boundaries.
4.1.(c) Review of state -wide transactions tax allocations and patterns to identify any obvious errors and omissions.
4.1.(d) Identification and follow -up with any potentially large purchasers of supplies and equipment (e.g. hospitals, universities, manufacturing plants, agricultural operations, refineries) to ensure that their major vendors are properly reporting corresp onding transactions tax payments to the Measure “T” Transactions Tax District.
4.2. Consultant will initiate, where the probability of an error exists, contacts with the appropriate taxpayer management and accounting officials to verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a p rofessional and courteous manner so as to enhance CITY’s relations with the business community.
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4.3. Consultant shall prepare and submit to the Department of Tax and Fee Administration all information necessary to correct any allocation errors and deficiencies that are identified and shall follow-up with the individual businesses and the California Depar tment of Tax and Fee Administration to ensure that all back quarter payments due the CITY are recovered.
5. Consulting and Other Optional Services
Consultant may f rom time to time in its sole discretion, consult with City’s staff, including without limitation, regarding (i) technical questions and other issues related to sales, use and transactions tax , (ii) utilization of reports to enhance business license collection efforts, (iii) sales tax projections for proposed annexations, economic development projects and budget planning, (iv) negotiating/review of tax sharing agreements, (v) establishing purchasing corporations, (vi) meeting with taxpayers t o encourage self-assessment of tax obligations, and (vii) other sales, use or transaction s tax revenue- related matters.
FEES – Sales and Use Tax Services
6. Sales and Use Tax and Economic Analysis/Forecasting Services/Reports
6.1. Fees for performing the sales tax and economic analysis/forecasting Services as described above shall initially be $585 per month, commencing with the month of the Effective Date (hereafter referred to as “monthly fee”). The monthly fee shall be invoiced quarterly in arrears, and shall be paid by City no later than 30 days after the invoice date.
6.2. Consultant will increase the non-hourly Fees established above once a year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), as reported by the U.S. Bureau of Labor Statistics (the “CPI Change”).
7. Allocation and Audit Recovery Services
7.1. Fees for performing the allocation and audit recovery Services described above shall be 15% of all new, increased and recovered sales and use tax revenue received by the City as a result, in whole or in part, of the allocation audit and recovery services (hereafter referred to as “audit fee”).
The fee shall be paid notwithstanding any related City assistance, work in parallel, and/or incurrence of attorneys’ fees or other costs or expenses in connection, with the relevant Services.
7.2. The Fee described above include, without limitation, State fund transfers received for back quarter reallocations and monies received in the second eight (8) consecutive reporting quarters following completion of Consultant’s allocation audit and confirmation of the corrections by the CDTFA.
7.3. These Fees shall be paid by City upon Consultant’s submittal of evidence of Consultant’s relevant Services in support thereof, including, without limitation, copies of relevant communications between Consultant and the CDTFA and/or taxpayers.
FEES – Transactions Tax Services
8. Transactions Tax and Economic Analysis/Forecasting Services/Reports
8.1. Fees shall be paid $200 monthly billed quarterly for the transaction district tax reports that we include with the quarterly sales tax analyses. The monthly fee shall be invoiced quarterly in arrears and shall be paid by City no later than 30 days after the invoice date.
9. Allocation and Audit Recovery Services
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9.1. Fees shall be paid 25% of the initial amount of new transactions or use tax revenue received by the City because of audit and recovery work performed by Consultant, (hereafter referred to as "audit fees"). New revenue shall not include any amounts determined and verified by City or Consultant to be increment attributable to causes other than Consultant’s work pursuant to this agreement. In the event, Consultant is responsible for an increase in the tax reported by businesses already properly making tax payments to the City, it shall be Consultant’s responsibility to separate and support the incremental amount attributable to its efforts prior to the application of the audit fee. Said audit fees will apply to state fund transfers received for those specific quarters identified as being missing and/or deficient following completion of the audit by Consultant and confirmation of corrections by the California Department of Tax and Fee Administration but shall not apply prospectively to any future quarter. Con sultant shall provide City with an itemized quarterly invoice showing all formula calculations and amounts due for audit fees.
ADDITIONAL TERMS – Sales, Use and Transactions Tax Services
10. Consulting and Other Optional Services
10.1. Fees for performing the consulting and other optional Services described above shall be based on the following initial hourly rates: (i) Principal - $325; (ii) Programmer - $295; (iii) Senior Analyst - $245; and (iv) Analyst - $195.
10.2. Consultant may change the rates for its hourly Fees from time to time. A 30 days’ prior written notice to City will be given.
11. General Provisions Relating to Fees
11.1. Fees for travel and lodging expenses will be invoiced at cost and appl ied to all meetings (including implementation, training, operations and support). Travel expenses only apply to out of scope travel and must therefore be pre-approved by City.
11.2. Fees will be invoiced monthly to City for Services performed during the prior month. To the extent that Consultant has commercially reasonable means to do so, Fees will be netted out of City’s monthly revenue disbursement.
12. Confidentiality Information
Section 7056 of the State of California Revenue and Taxation Code (“R&T Code”) specifically limits the disclosure of confidential taxpayer information contained in the records of the C DTFA. Section 7056 specifies the conditions under which a city, county or district may authorize persons other than such city, county or district’s officers and employees to examine state sales and use tax records.
The following conditions specified in Section 7056 -(b)(1) of the State of California R&T Code are hereby made part of this Agreement:
12.1. Consultant is authorized by this Agreement to examine sales , use or transactions and use tax records of the CDTFA provided to City pursuant to contract under the Bradley-Burns Uniform Local Sales and Use Tax Law R&T Code Section 7200 et.seq.
12.2. Consultant is required to disclose information contained in, or derived from, those sales or transactions and use tax records only to an officer or employee of City who is authorized by City resolution provided to the CDTFA to examine the information.
12.3. Consultant is prohibited from performing consulting services for a retailer (as defined in R&T Code Section 6015), during the term of this agreement.
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12.4. Consultant is prohibited from retaining the information contained in or derived from those sales, use or transactions and use tax records after this agreement has expired. Information obtained by examination of the CDTFA records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of the City as set forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and Taxation Code. The resolution shall designate the Consultant as a person authorized to examine sales and use tax records and certify that this agreement meets the requirements set forth above and in Section 7056 (b), (1) of the Revenue and Taxation Code.
13. Software Use and Proprietary Information
Software Use. Consultant hereby provides authorization to C ity to access Consultant’s Sales Tax website if City chooses to subscribe to the software and reports option. The website shall only be used by authorized C ity staff. No access will be granted to any third party without explicit written authorization by Consultant. C ity shall not sublet, duplicate, modify, decompile, reverse engineer, disassemble, or attempt to derive the source code of said software. The software use granted hereunder shall not imply ownership by City of said software, or any right of City to sell said software or the use of same, or any right to use said software for the benefit of others. This software use authorization is not transferable. Upon termination or expiration of this Agreement, the software use authorization shall expire, and all City staff website logins shall be de-activated.
Proprietary Information. As used herein, the term “proprietary information” means all information or material that has or could have commercial value or other utility in Consultant’s business, including without limitation: C onsultant’s (i) computer or data processing programs; (ii) data processing applications, routines, subroutines, techniques or systems; desktop or web-based software; (iii) business processes; (iv) marketing plans, analysis and strategies; and (v) materials and techniques used; as well as the terms and conditions of this Agreement. Except as otherwise required by law, City shall hold in confidence and shall not use (except as expressly authorized by this Agreement) or disclose to any other party any proprietary information provided, learned of or obtained by City in connection with this Agreement. The obligations imposed by this Section shall survive any expiration or termination of this Agreement or otherwise. The terms of this Section shall not apply to any information that is public information.
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01375.0007/1043017.2 145610
EXHIBIT "B"
SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
Click or tap here to enter text.
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EXHIBIT “C”
SCHEDULE OF COMPENSATION
I. City will compensate Consultant for the Services performed upon submission of a valid invoice. Each invoice is to include
A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate.
B. Line items for all materials and equipment properly charged to the Services.
C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.
D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.
II. The total compensation for all Services shall not exceed the Contract Sum as provided in the Cover Page of this Agreement.
III. Consultant’s billing rates for any hourly Services, if not provided in Exhibit A, are attached as Exhibit C -1. In connection with the services provided pursuant to the terms of this Agreement, City will pay Consultant upon City’s receipt of a written invoice provided by Consultant no more than monthly. City will pay Consultant for work completed, billed in increments of six minutes (0.1 hours), not to exceed the Contract Sum. The City will reim burse the Consultant for reasonable out -of-pocket expenses related to performing services on behalf of the Client that are approved i n advance in writing by the City such as mileage, copies, binding costs, postage, parking, travel, and lodging expenses as part of the not to exceed Contract Sum. To receive reimbursements, the Consultant must provide the City with a receipt and a description of the expense incurred along with the invoice. No mark up on expenses may be added.
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EXHIBIT "D"
SCHEDULE OF PERFORMANCE
I. Consultant shall perform Services as set forth in Exhibit A.
II. Consultant shall deliver the following tangible work products to the City by the following dates.
Click or tap here to enter text.
III. The Department Contact may approve extensions for performance of the Services in accordance with Section 3.2.
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EXHIBIT E
INSURANCE REQUIREMENTS
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required if consultant provides written verification it has no employees)
4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.
5. Cyber: Vendor/Consultant shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, or damages to property (including computer equipment) which may arise from or in connection with the performance of the work hereunder by the Vendor, its agents, representatives, or employees. Vendor shall procure and maintain for the duration of the contract insurance claims arising out of their services and including, but not limited to loss, damage, theft or other misuse of data, infringement of intellectual property, invasion of privacy and breach of data.
Cyber Liability Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be 225
01375.0007/1043017.2
limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
6. Technology Professional Liability Errors & Omissions (Only if vendor is providing a technology service (data storage, website designers, etc.,) or product (software providers)
Technology Professional Liability Errors and Omissions Insurance appropriate to the Consultant’s profession and work hereunder, with limits not less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Vendor in this agreement and shall inc lude, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property , including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic informatio n. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
a. The Policy shall include, or be endorsed to include, property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the Agency in the care, custody, or control of the Vendor.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).
Primary Coverage
For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non -contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance 226
01375.0007/1043017.2
and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.
Umbrella or Excess Policy
The Consultant may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non -contributory, additional insured, Self -Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the C onsultant’s primary and excess liability policies are exhausted.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subje ct to a self -insured retention (SIR) or deductible that exceeds $25,000 [fill in the amount for your comfort level for the specific Con sultant and job – it could be much higher, or in the case of a very small Consultant, you might want it lower] unless approved in writing by City. Any and all deductibles and SIRs shall be the sole responsibility of Consultant or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts other wise due Consultant to fund the SIR/deductible. Policies shall NOT contain any self -insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City. 227
01375.0007/1043017.2
Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:
1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences. However, failure to obtain the requi red documents prior to the work beginning shall not waive the Con sultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.
Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained , and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
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EXHIBIT F
FEDERAL REQUIREMENTS
(Only applicable if required on cover page of agreement) 229
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A :
NAIC #
NAME:
CONTACT
(A/C, No):
FAX
E-MAIL
ADDRESS:
PRODUCER
(A/C, No, Ext):
PHONE
INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $
$
$PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)
COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOSAUTOS ONLY
NON-OWNED
SCHEDULEDOWNED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTH-
STATUTE
PER
LIMITS(MM/DD/YYYY)
POLICY EXP
(MM/DD/YYYY)
POLICY EFF
POLICY NUMBERTYPE OF INSURANCELTR
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
$AGGREGATE
$
OCCUR
CLAIMS-MADE
DED RETENTION $
$PRODUCTS - COMP/OP AGG
$GENERAL AGGREGATE
$PERSONAL & ADV INJURY
$MED EXP (Any one person)
$EACH OCCURRENCE
DAMAGE TO RENTED
$PREMISES (Ea occurrence)
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY PRO-
JECT LOC
CERTIFICATE OF LIABILITY INSURANCE
DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
5/28/2024
Woodruff Sawyer
2 Park Plaza, Suite 500
Irvine CA 92614
WS Certificates
844-972-6326
[email protected]
Berkley National Insurance Company
38911
HDLCOMP-01
Hudson Excess Insurance Company
14484
Hinderliter de Llamas & Associates
HdL Software, LLC.
120 S. State College Blvd, Suite 200
Brea, CA 92821
389390107
A
X
1,000,000
X
1,000,000
15,000
1,000,000
2,000,000
X
Y
Y
TCP702275411
5/26/2024
5/26/2025
2,000,000
A
1,000,000
X
TCP702275411
5/26/2024
5/26/2025
A
X
X
5,000,000
TCP702275411
5/26/2024
5/26/2025
5,000,000
X
None
B
E&O/ Cyber Liability
EET1416702
5/26/2024
5/26/2025
Per Claim/Aggregate
$2,000,000
Retroactive Date for Professional Liability- 2/15/2013.
Line Of Coverage: Crime
Policy # 82556901
Effective Date 5/26/2024 - 5/26/2025
Carrier: Federal Insurance Company NAIC # 20281
Crime Limit: $1,000,000
See Attached...
City of Murrieta, and its respective elected and appointed officers, officials, employees, and volunteers
One Town Square, 24601 Jefferson Avenue
Murrieta CA 92562
230
ACORD 101 (2008/01)
The ACORD name and logo are registered marks of ACORD
© 2008 ACORD CORPORATION. All rights reserved.
THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: FORM TITLE:
ADDITIONAL REMARKS
ADDITIONAL REMARKS SCHEDULE Page of
AGENCY CUSTOMER ID:
LOC #:
AGENCY
CARRIER NAIC CODE
POLICY NUMBER
NAMED INSURED
EFFECTIVE DATE:
HDLCOMP-01
1 1
Woodruff Sawyer
Hinderliter de Llamas & Associates
HdL Software, LLC.
120 S. State College Blvd, Suite 200
Brea, CA 92821
25 CERTIFICATE OF LIABILITY INSURANCE
City of Murrieta, and its respective elected and appointed officers, officials, employees, and volunteers are included as Additional Insured as respects General Liability on a Primary and Non-contributory basis with a waiver of subrogation to the extent provided in the attached forms. Notice of Cancellation applies with respects General Liability to the extent provided in the attached form. 231
POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
CG 02 24 10 93
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 02 24 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 1 of 1 o o
EARLIER NOTICE OF CANCELLATION
PROVIDED BY US
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
SCHEDULE
Number of Days' Notice
(If no entry appears above, information required to complete this Schedule will be shown in the Declarations as applicable to this endorsement.)
For any statutorily permitted reason other than nonpayment of premium, the number of days required for notice of cancellation, as provided in paragraph 2. of either the CANCELLATION Common Policy Condition or as amended by an applicable state cancellation endorsement, is increased to the number of days shown in the Schedule above.
30 TCP702275411
City of Murrieta, and its respective elected and appointed officers, officials, employees, and volunteers One Town Square, 24601 Jefferson Avenue
Murrieta
92562
CA
232
POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
CG 20 26 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 20 26
12 19 © Insurance Services Office, Inc., 2018 Page 1 of 1 ADDITIONAL INSURED – DESIGNATED
PERSON OR ORGANIZATION
This end
orsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name Of Additional Insured Person(s) Or Organization(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. S
ection II – Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability for "bodily injury", "property damage" or "personal and advertising injury"
caused, in whole or in part, by your acts or
omissions or the acts or omissions of those acting
on your behalf:
1. In the performance of your ongoing operation s;
or
2. In connection with your premises owned by o r
rented to you.
However:
1. The insurance afforded to such additional
insured only applies to the extent permitted by
law; and
2. If coverage provided to the additional insured is
required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.
B. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III – Limits Of Insurance:
If coverage provided to the additional insured i s
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:
1. Required by the contract or agreement; or
2. Available under the applicable limits o f
insurance;
whichever is less.
This endorsement shall not increase the
applicable limits of insurance.
TCP702275411
City of Murrieta, and its respective elected and appointed officers, officials, employees, and volunteers One Town Square, 24601 Jefferson Avenue
Murrieta
CA
92562
233
Policy Number: TCP702275411
234
Policy Number: TCP702275411
235
Policy Number: TCP702275411
236
Policy Number: TCP702275411
237
POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
CG 24 04 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 24 04 12 19 © Insurance Services Office, Inc., 2018 Page 1 of 1
WAIVER OF TRANSFER OF RIGHTS OF RECOVERY
AGAINST OTHERS TO US (WAIVER OF SUBROGATION)
This endorsement modifie
s insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
ELECTRONIC DATA LIABILITY COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART DESIGNATED SITES
POLLUTION LIABILITY LIMITED COVERAGE PART DESIGNATED SITES
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
RAILROAD PROTECTIVE LIABILITY COVERAGE PART
UNDERGROUND STORAGE TANK POLICY DESIGNATED TANKS
SCHEDULE
Name Of Person(s) Or Organization(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
The following is
added to Paragraph 8. Transfer Of
Rights Of Recovery Against Others To Us o f
Section IV – Conditions:
We waive any right of recovery against the person(s)
or organization(s) shown in the Schedule above
because of payments we make under this Coverage
Part. Such waiver by us applies only to the extent that the insured has waived its right of recovery against
such person(s) or organiza tion(s) prior to loss. This
endorsement applies only to the person(s) or
organization(s) shown in the Schedule above.
TCP702275411
City of Murrieta, and its respective elected and appointed officers, officials, employees, and volunteers One Town Square, 24601 Jefferson Avenue
Murrieta
92562
CA
238
CITY OF MURRIETA
City Council Meeting Agenda
Report
1/21/2025
Agenda Item No. 11.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Cristal McDonald, City Clerk
PREPARED BY: Kimberly Ramirez, Deputy City Clerk
SUBJECT:
Appointment of City Commissions
RECOMMENDATION
Appoint Commission members as recommended by the Commission Appointments Ad-Hoc Subcommittee to the following City Commissions:
Library Advisory Commission (2 Regular Members)
Laverne Davis, Regular Member
Nicole Davis, Regular Member
Parks and Recreation Commission (2 Regular Members, 1 Alternate) Paul Parker, Regular Member
Whitney Moylan, Regular Member
Bryan Glassman, Alternate No. 1
Traffic Commission (2 Regular Members, 1 Alternate)
Cathy Bearse, Regular Member
James Chavez, Regular Member
Maria Robinson, Alternate No. 1; and
Interview and appoint as recommended by the Commission Appointments Ad-Hoc Subcommittee to the Planning Commission:
Planning Commission (2 Regular Members, 1 Alternate)
Tom Beamish, Regular Member
Keelan McCullough, Regular Member
John Rose, Alternate No. 1
PRIOR ACTION/VOTE
On January 15, 2019, the City Council adopted Resolution No. 19-4033, making appointments to City commissions (Vote: 3-1-1).
On February 2, 2021, the City Council adopted Resolution 21-4358, making appointments to City commissions CITY OF MURRIETA Printed on 1/22/2025Page 1 of 4
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Agenda Item No. 11.
(Vote 5-0).
On December 7, 2021, the City Council appointed a Regular Member and Alternate Member to the Planning Commission due to an unscheduled vacancy (Vote 5-0).
On January 17, 2023, the City Council made appointments to City commissions (Vote: 5-0).
On August 1, 2023, the City Council made appointments to the Transactions and Use Tax Citizens Oversight Committee (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
The City of Murrieta (City) has five (5) Commissions/Committees dedicated to addressing various issues and improving the overall quality of life in the City. Appointments to the multiple Commissions are made concurrently with the General Municipal Elections; the term for a Commissioner or Alternate Member is four (4) years.
The City Clerk also conducted outreach, which included: holding an informational session, posting a notice of scheduled and unscheduled vacancies; and contacting individuals with an active application on file.
Applications considered have been provided to the City Council under separate cover and are available for viewing at the City Clerk Department.
City Council Policy No. 100-07, Appointment of Commissioners/Committee Members, guides the Commission appointment process, which includes interviewing applicants by a two-member City Council subcommittee and recommendations to the City Council.
The City Council Commission Appointments Ad-Hoc Subcommittee (Subcommittee) is comprised of Council Member DeForest and Council Member Holliday. The Subcommittee met on January 7, 2025, to conduct interviews with all interested applicants. After a comprehensive evaluation of each applicant’squalifications and their alignment with the responsibilities of the Commissions, the Subcommittee has put forth recommendations.
Library Advisory Commission
The purpose of the Library Advisory Commission is to provide community perspective and support to the Library staff on policies and major grant or capital project proposals, to make recommendations of the aforementioned to the City Council, as well as to promote the services and needs of the Murrieta Public Library to State legislators, County boards, the City Council, and the community (Murrieta Municipal Code (MMC) 2.39.10).
After interviewing applicants, the Subcommittee recommends the following appointments to the Library Advisory Commission:
Name Position Expiration
Laverne Davis Regular Member December 31, 2028
Nicole Davis Regular Member December 31, 2028CITY OF MURRIETA Printed on 1/22/2025Page 2 of 4 powered by Legistar™
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Agenda Item No. 11.Name Position Expiration
Laverne Davis Regular Member December 31, 2028
Nicole Davis Regular Member December 31, 2028
Parks and Recreation Commission
The purpose of the Parks and Recreation Commission is to act in an advisory capacity to the City Council and the Community Services Director in all matters pertaining to the Community Services District through the development and implementation of human services, comprehensive recreation programs, parks, and recreation facilities to meet the needs of all the residents within the City (MMC 2.40.015).
After interviewing applicants, the Subcommittee recommends the following appointments to the Parks and Recreation Commission:
Name Position Expiration
Paul Parker Regular Member December 31, 2028
Whitney Moylan Regular Member December 31, 2028
Bryan Glassman Alternate No. 1 December 31, 2026
Traffic Commission
The purpose of the Traffic Commission is to advise the City Council on traffic issues, existing and proposed City policies related to traffic calming and the traffic environment, and projects and budget priorities for traffic- related capital improvements (MMC 2.48.015).
After interviewing applicants, the Subcommittee recommends the following appointments to the Traffic Commission:
Name Position Expiration
Cathy Bearse Regular Member December 31, 2028
James Chavez Regular Member December 31, 2028
Maria Robinson Alternate No. 1 December 31, 2026
Planning Commission
The primary purpose of the Planning Commission is to focus on the physical environment within the City. The commission conducts public hearings and makes decisions and/or recommendations about development on behalf of the City Council. The Planning Commission makes recommendations to the City Council on General Plan amendments, specific plans and zone changes (MMC 2.44.015).
Participating in the Planning Commission requires applicants to know, appreciate, and comprehend public issues and concerns related to the City as expected of a person who has resided in the City for at least three years.
In accordance with City Council Policy 100-07, after interviewing applicants, the Subcommittee recommends the following for a final interview and appointment:
Name Position Expiration
Thomas Beamish Regular Member December 31, 2028
Keelan McCullough Regular Member December 31, 2028
John Rose Alternate No. 1 December 31, 2026
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Agenda Item No. 11.
Name Position Expiration
Thomas Beamish Regular Member December 31, 2028
Keelan McCullough Regular Member December 31, 2028
John Rose Alternate No. 1 December 31, 2026
FISCAL IMPACT
None.
ATTACHMENTS
None.
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Appointment of City Commissions
Item No. 11
Cristal McDonald, City Clerk
R e c e i v e d A f t e r A g e n d a P r i n t e d 1 / 2 1 / 2 0 2 5 - R e g u l a r M e e t i n g D I S C U S S I O N - I t e m N o . 1 1
P r e s e n t a t i o n
245
2 • Library Advisory Commission
• Parks and Recreation Commission
• Planning Commission
• Traffic Commission
• Transactions and Use Tax Citizens Oversight Committee* * No vacancies (scheduled or unscheduled) exist at this time.
City Commissions and
Committees
246
3 Commission Recruitment
Outreach Conducted:
• Informational session
• Social Media outreach
• Posting a notice of scheduled and unscheduled vacancies • Individuals contacted with an active application on file Total applicants: 18
247
Recommendation No. 1:
Make appointments, as recommended by the City Council
Commission Appointments Subcommittee, to the City’s Library Advisory Commission, Parks and Recreation Commission, and Traffic Commission.
248
5 Library Advisory
Commission
NAME POSITION EXPIRATION
Laverne Davis Regular Member December 31, 2028
Nicole Davis Regular Member December 31, 2028
249
6 Parks and Recreation
Commission
NAME POSITION EXPIRATION
Paul Parker Regular Member December 31, 2028
Whitney Moylan Regular Member December 31, 2028
Bryan Glassman Alternate No. 1 December 31, 2026
250
7 Traffic Commission
NAME POSITION EXPIRATION
Cathy Bearse Regular Member December 31, 2028
James Chavez Regular Member December 31, 2028
Maria Robinson Alternate No. 1 December 31, 2026
251
Recommendation No. 2
Interview and appoint as recommended by the Commission
Appointments Ad-Hoc Subcommittee to the Planning Commission. 252
9 Planning Commission
NAME POSITION EXPIRATION
Thomas Beamish Regular Member December 31, 2028
Keelan McCullough Regular Member December 31, 2028
John Rose Alternate No. 1 December 31, 2026
253
254
255
256
257
CITY OF MURRIETA
City Council Meeting Agenda
Report
1/21/2025
Agenda Item No. 12.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Jennifer Terry, Finance Manager
SUBJECT:
Presentation and Review of the City of Murrieta’s Fiscal Year 2023/24 Annual Comprehensive Financial Report and Single Audit Report
RECOMMENDATION
Receive and file the Fiscal Year 2023/24 Annual Comprehensive Financial and Single Audit Reports.
PRIOR ACTION/VOTE
On April 18, 2023, the City Council awarded an agreement to Rogers, Anderson, Malody, and Scott, LLP for independent audit services (Vote: 4-0-1).
On April 2, 2024, the Fiscal Year 2022/23 Comprehensive Annual Financial Report and Single Audit Report were received and filed with the City Council (Vote: 5-0).
On August 20, 2024, the City Council approved the first amendment to the agreement with Rogers, Anderson, Malody, and Scott, LLP (Vote: 5-0).
On December 3, 2024, the City Council received year-end pre-audit results as the City Council and Board of Directors approved appropriation adjustments for carryover of unspent amounts from Fiscal Year 2023/24 to Fiscal Year 2024/25 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
The City of Murrieta has prepared its Annual Comprehensive Financial Report (Financial Statements) for the Fiscal Year ending June 30, 2024. The independent auditing firm of Rogers, Anderson, Malody, and Scott, LLP (RAMS) has issued an unmodified (clean) opinion on the City’sfinancial statements, indicating they are free from material misstatement and present fairly the financial position and results of operations of the various CITY OF MURRIETA Printed on 1/16/2025Page 1 of 5
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Agenda Item No. 12.
funds and account groups of the City. The Financial Statements were completed on December 12, 2024.
In addition to the annual independent audit of the City’sfinancial statements, the City is required to complete a Single Audit Report on Federal Awards as a condition of spending federal assistance in excess of $750,000.
As a result of their annual independent audit of the City’sfinancial records and statements, the audit firm has rendered an unmodified (or “clean”)opinion on the City’sfinancial statements. That is, RAMS believes the financial statements are fairly presented in accordance with generally accepted accounting principles. With this item, staff brings forward the City’saudited financial position for Fiscal Year 2023/24 in the form of the financial statements.
Financial Statements
The government-wide financial statements (Statement of Net Position and Statement of Activities) report information on all activities of the City and its component units. The statement of net position presents information on all of the City of Murrieta’sassets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Murrieta is improving or deteriorating.
The City’scombined net position as of June 30, 2024, was $575,101,386. The City’snet position increased by $16,016,719, compared to the prior fiscal year. The increase in the City’snet position is primarily due to a rise of $25,505,894, in total assets, net of deferred outflows of resources, and an increase of $9,489,175, in total liabilities, net of deferred inflows of resources. The most substantial growth was seen in the restricted net position, which rose by $10,229,924, with $9,107,071, allocated for Public Works. The unrestricted net position increased by $9,568,487.
Current assets increased by $27,943,514, or 9.34%, compared to prior year balances. The increase is mostly attributable to the following items: an increase in cash and investments of $26,183,721, and an increase in the sum of all receivables totaling $4,400,647.
The capital assets net of accumulated depreciation has decreased by $4,975,316. The decrease represents the difference between additions, deletions, and depreciation in the current year. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Changes in the various components associated with Governmental Accounting Standards Board (GASB) statement 68 Accounting and Financial Reporting for Pension, statement 75 Accounting and Financial Reporting for Postemployment Benefits Other than Pension (OPEB), and statement 87 Leases impacted deferred outflows and inflows, and changes in pension, OPEB and leases liabilities for the year. GASB 68 and GASB 75 pronouncements required the City to record the net pension and OPEB liabilities on the books. The deferred outflows of resources increased by $2,537,696, while the deferred inflows of resources decreased by $2,086,050.
Current liabilities increased by $6,968,024, or 16.55%. The increase is primarily attributable to the increase in compensated absences of $4,224,298. Another contributing factor was an increase of $426,906, in the GASB 96 accounting for software licenses. The remaining increase of $599,368, came from increasing debt service, notes payable, lease liability, and claims and judgments. Accounts payable increased by $1,658,909, accrued liabilities increased by $1,585,676, unearned revenue decreased by $2,136,457, due to recognized grant revenue from the American Rescue Plan Act grant, and the remaining increase of $606,326, came from other liabilities.
Long-term liabilities, such as outstanding debt, leases, employee benefit accruals, claims and judgments, and OPEB liability, increased by $4,607,201, an increase of approximately 2.5% from the prior year. The most significant addition is attributable to the increase in actuarial valuation for OPEB liability of $6,559,867, and an CITY OF MURRIETA Printed on 1/16/2025Page 2 of 5
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Agenda Item No. 12.
significant addition is attributable to the increase in actuarial valuation for OPEB liability of $6,559,867, and an increase in pension liability of $7,717,344. Other notable increases were from software licenses and a commercial lease for additional staff space totaling $1,626,792. Bonded debt decreased by $7,584,848, due to annual principal payments. Compensated absences reduced by $3,627,885, as a result of a greater shift in the amounts due within one year. All other outstanding debt categories decreased by $84,069.
Approximately 75% of the City's net position is a net investment in capital assets (i.e., land, construction in progress, buildings, land & building improvements, parkland improvements, vehicles, equipment, and infrastructure), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; therefore, these assets are not available for future spending.
The restricted net position represents resources subject to external restrictions and earmarked for a specific purpose. The unrestricted net position represents the resources that may be used to meet the government's ongoing obligations to creditors and services to residents.
Governmental Funds
For Financial Statement presentation purposes, the City of Murrieta maintains twenty-three (23) individual governmental funds. As of the end of the current fiscal year, the City of Murrieta’sgovernmental funds reported combined ending fund balances of $276,099,682, an increase of $26,710,713, or approximately 10.71% compared to last year's governmental funds balance. The change in fund balance for the General Fund column totaled $16,140,781, broken down by fund as follows:
The other net changes in fund balances in the governmental funds include an increase of $4,154,681, for the Capital Project Development Impact Fee fund, $918,004, for the Fire District fund, and $5,470,536, for the Non -Major Governmental Funds. The Non-Major Government Fund - fund balance includes the Debt Service fund balance of $1,883,583, which is now reported as a Non-Major Governmental Fund, and a beginning balance restatement of $24,635. The Federal Grant fund's negative unassigned fund balance was reduced by $26,711, and is due to pending grant reimbursements. The General Fund increased by $15,762,124, net of a beginning balance restatement of $378,657. Additionally, Debt Service Fund 2016A LARB was removed from a major fund classification and is now reported as a nonmajor fund.
In accordance with GASB Statement No. 54 (thoroughly discussed in the notes to the financial statements Note 9 - Fund Balance), the combined ending fund balance of $276,099,682 is broken down as follows:
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Agenda Item No. 12.
General Fund
For the Financial Statement presentation, the General Fund column includes the following funds: General Fund, Measure T Fund, General Capital Fund, Traffic Safety Fund, Crime Prevention Fund, and Vehicle Replacement Fund. At the end of the fiscal year, the General Fund’s revenues exceeded expenditures, including other financing sources (uses), by $16,140,781, thereby increasing the General Fund balance at the end of June 30, 2024, to $142,929,305.
General Fund revenues increased by $6,456,663 to $106,589,682, including transfers and proceeds from the sale of assets, compared to the prior year. The increase is primarily attributable to an increase of $7,619,682, in the Use of Money and Property, an increase in Taxes of $510,151, and an increase of $497,887, in Transfers In. Conversely, other revenue sources decreased over the prior year: License and Permits decreased by $285,875, Intergovernmental Revenues decreased by $779,096, and Charges for Services decreased by $1,010,667. Lastly, the remaining revenue categories declined by approximately $95,419.
The increase in the Use of Money & Property is due to two factors. The first is an increase in investment income associated with the City’sinvestment portfolio and short-term investment through the City’ssweep account. The investment income increase is approximately $2,220,165. The other component is associated with the accounting required by GASB 31 to recognize unrealized gain or loss of securities that weren’tsold or matured at year-end. The change in recognition of unrealized gain or loss of securities accounts over the prior year is $5,394,189. During the fiscal year, the value of fixed-income securities, like the ones in the City’s portfolio, have an inverse relationship to the movement of interest rates. The value of a bond will increase as interest rates decrease. Conversely, the value of bonds decreases when interest rates rise.
General Fund expenditures increased by $12,224,133 to $90,448,901, which included transfers out and other financing uses. The increase in expenditures is mainly attributable to Public Safety operations and services by $6,686,184. Personnel-related expenditures accounted for $6,315,390 or 94.4% of the increase and the balance of $370,794, was for operating costs.
The General Government Category increased by $1,730,906. This increase is associated with personnel- related expenditures of $1,112,073, and operating costs increases of $618,834, for special legal and contract services, and building and vehicle maintenance. Transfers out increased by $1,544,505. The category provides funding to special revenue funds that have operating shortfalls. Public Works and Community Development increased by $424,187 and $236,719, respectively. All other expenditure categories increased by $1,601,631.
Capital Assets
At the end of FY 2023/24, the City had capital assets (net of accumulated depreciation) of $442,471,511, including land, construction in progress (CIP), buildings and improvements, improvements to land, parkland improvements, equipment (including vehicles), infrastructure, leased assets, and right-to-use subscriptions.
Current year additions to all asset categories totaled $13,963,593, while deletions totaled $4,238,424. The CITY OF MURRIETA Printed on 1/16/2025Page 4 of 5
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Agenda Item No. 12.
Current year additions to all asset categories totaled $13,963,593, while deletions totaled $4,238,424. The accumulated depreciation increased by $14,700,485, net of deletions. Capital assets with the most significant increase were in Construction in Progress with $1,900,926. The asset class with the next most significant increase was Right to Use Subscriptions with $1,423,381. The capital asset category with the most significant decreases net of depreciation was infrastructure, with $5,169,246, followed by parkland improvements, with $1,375,484, and then equipment, with $1,145,883. The remaining categories had an overall decrease of $609,010. The decreases were primarily due to current-year depreciation.
Long-Term Debt
At the end of the current fiscal year, the City of Murrieta had bonded debt and leases outstanding, along with liability for claims and judgments, an obligation for OPEB, compensated absences payable, and Net Pension liabilities totaling $203,113,902. The total outstanding debt increased by approximately 5.10% or $9,857,773 during FY 2023/24. The most significant increase relates to the increase in Net Pension Liability.
The pension (CalPERS) liability increased by $7,717,344, due to changes in assumptions, differences between expected and actual experiences, differences between projected and actual investment earnings, differences between employer’s contributions and proportionate share of contributions, and changes in employer’s proportion of costs.
The increase in OPEB liability of approximately $6,559,867, is attributed to a reduction in the discount rate from 5.70% to 5.06%, changes in assumptions, and differences between expected and actual experiences.
Claims and Judgments related to the City’s general liability and Workers’ Compensation decreased by $111,058, due to the actuarial valuation of future liability. Compensated absences had an increase of $570,713, due to an increase in the number of employees and increases in the salary and compensation schedules. The remaining outstanding debt items had an overall decrease of $4,879,093, primarily due to payment of annual debt service payments.
Audit Findings
The Fiscal Year 2023/24 Financial Statement Audit and Single Audit Report have no findings.
Award
For Fiscal Year 2022/23, the City’sFinancial Statements were awarded the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA). This prestigious national award recognizes the City’s use of the highest standards in preparing the annual financial report. This certificate of achievement is valid for a period of one year only. Staff believes the City’sFinancial Statements for Fiscal Year 2023/24 continue to meet the program’srequirements, and they have been submitted to GFOA for award consideration.
FISCAL IMPACT
There is no fiscal impact associated with accepting and filing this item.
ATTACHMENTS
1. Annual Comprehensive Financial Report for Fiscal Year ending June 30, 2024
2. Single Audit Report for Fiscal Year ending June 30, 2024 CITY OF MURRIETA Printed on 1/16/2025Page 5 of 5
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CITY OF MURRIETA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2024
CITY COUNCIL
Lori Stone, Mayor
Cindy Warren, Mayor Pro-Tem
Lisa DeForest, Councilmember
Jon Levell, Councilmember
Ron Holliday, Councilmember
CITY MANAGER
Kim Summers
263
264
City of Murrieta
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Introductory Section:
Letter of Transmittal ............................................................................................................... i List of Principal Officers ..................................................................................................... . xiv Organizational Chart ........................................................................................................... xv GFOA Certificate of Achievement for Excellence in Financial Reporting ............................ xvi
Financial Section:
Independent Auditor's Report ..................................................................................................... 1 Management's Discussion and Analysis ..................................................................................... 5 Financial Statements
Government-Wide Financial Statements
Statement of Net Position ................................................................................................ 19 Statement of Activities .................................................................................................... 20 Fund Financial Statements
Balance Sheet – Governmental Funds ........................................................................... 21 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ........................................................................................... 23 Statement of Revenues, Expenditures, and Changes in
Fund Balances – Governmental Funds ..................................................................... . 24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...................... 26 Statement of Fund Net Position – Proprietary Funds ...................................................... 27 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ........................................................................................................ 28 Statement of Cash Flows – Proprietary Funds ................................................................ 29 Statement of Fiduciary Net Position ................................................................................ 30 Statement of Changes in Fiduciary Net Position ............................................................. 31
Notes to the Financial Statements ............................................................................................ 32
Required Supplementary Information:
Schedule of Proportionate Share of the Net Pension
Liability – Miscellaneous ............................................................................................. 84 Schedule of Contributions – Miscellaneous ....................................................................... 85 Schedule of Proportionate Share of the Net Pension
Liability – Safety ......................................................................................................... 86 Schedule of Contributions – Safety ................................................................................... 87 Schedule of Changes in the Net OPEB Liability and Related Ratios ................................ 88 Schedule of Contributions – OPEB ................................................................................... 89 Budgetary Comparison Schedule – General Fund ............................................................ 90 Budgetary Comparison Schedule – Fire District Special Revenue Fund .......................... 91 Budgetary Comparison Schedule – Federal Grants Special Revenue Fund ..................... 92
265
City of Murrieta
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS, (Continued)
Notes to Required Supplementary Information ................................................................. 93
Supplementary Information:
Consolidating Schedule of Balance Sheet By Sub Fund –
General Fund ............................................................................................................. 94 Consolidating Schedule of Revenues, Expenditures, and Changes in Fund Balance by Sub Fund – General Fund .............................................................. 96
Nonmajor Governmental Funds:
Combining Balance Sheet –Nonmajor Governmental Funds ............................................ 98 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds ..................................................... 104 Budgetary Comparison Schedule – Special Revenue Fund
State Gas Tax .......................................................................................................... 110 Budgetary Comparison Schedule – Special Revenue Fund
Measure A ................................................................................................................. 111 Budgetary Comparison Schedule – Special Revenue Fund
Air Quality Management District ............................................................................... 112 Budgetary Comparison Schedule – Special Revenue Fund
Block Grants ............................................................................................................. 113 Budgetary Comparison Schedule – Special Revenue Fund
Seized Assets Forfeitures ........................................................................................ 114 Budgetary Comparison Schedule – Special Revenue Fund
Supplemental Law Enforcement Services Fund (SLESF) ........................................ 115 Budgetary Comparison Schedule – Special Revenue Fund
Murrieta Public Library ............................................................................................. 116 Budgetary Comparison Schedule – Special Revenue Fund
National Pollutant Discharge Elimination System (NPDES) ..................................... 117 Budgetary Comparison Schedule – Special Revenue Fund
Reimbursement Agreement Fund ............................................................................ 118 Budgetary Comparison Schedule – Special Revenue Fund
TUMF ....................................................................................................................... 119 Budgetary Comparison Schedule – Special Revenue Fund
Housing Authority ..................................................................................................... 120 Budgetary Comparison Schedule – Special Revenue Fund
Community Services District .................................................................................... 121 Budgetary Comparison Schedule – Special Revenue Fund
Road Maintenance and Rehabilitation Account ....................................................... 122 Budgetary Comparison Schedule – Special Revenue Fund
Other Grants ............................................................................................................ 123 Budgetary Comparison Schedule – Special Revenue Fund
Developer Agreement .............................................................................................. 124
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TABLE OF CONTENTS, (Continued)
Budgetary Comparison Schedule – Special Revenue Fund
Opioid Settlement ..................................................................................................... 125 Budgetary Comparison Schedule – Capital Projects Fund - Community Facilities District .................................................................................... 126 Budgetary Comparison Schedule – Capital Projects Fund - Area Drainage .......................................................................................................... 127 Budgetary Comparison Schedule – Capital Projects Fund - South West Road and Bridge ................................................................................... 128 Budgetary Comparison Schedule – Debt Service Fund -
Citywide Debt Service ............................................................................................... 129 Budgetary Comparison Schedule – Debt Service Fund -
2016A LARB ............................................................................................................ 130 Budgetary Comparison Schedule – Debt Service Fund -
2016B LARB ............................................................................................................ 131 Budgetary Comparison Schedule – Debt Service Fund -
Town Hall Association .............................................................................................. 132
Internal Service Funds:
Combining Statement Fund of Net Position – Internal Service Funds ............................. 133 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Internal Service Funds ............................................................. 134 Combining Statement of Cash Flows – Internal Service Funds ...................................... 135
Statistical Section:
Statistics ......................................................................................................................... 136 Net Position By Component ............................................................................................ 138 Changes in Net Position .................................................................................................. 139 Fund Balances of Governmental Funds .......................................................................... 141 Changes in Fund Balances of Governmental Funds ....................................................... 142 Assessed Value and Estimated Actual Value of Taxable Property ................................. 143 Direct and Overlapping Property Tax Rates .................................................................... 144 Principal Property Tax Payers ......................................................................................... 145 Principal Tax Levies and Collections ............................................................................... 146 Ratios of Outstanding Debt by Type ................................................................................ 147 Ratios of General Bonded Debt Outstanding .................................................................. 148 Direct and Overlapping Governmental Activities Debt ..................................................... 149 Legal Debt Margin Information ........................................................................................ 150 Demographic and Economic Statistics ............................................................................ 151 Principal Employers ......................................................................................................... 152 Full-Time Equivalent City Government Employees By
Function/Program ..................................................................................................... 153 Operating Indicators by Function/Program ...................................................................... 154 Capital Asset Statistics by Function/Program .................................................................. 155 267
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CITY OF MURRIETA
1 Town Square
Murrieta, CA 92562
December 12, 2024
Honorable Mayor and Members of the City Council:
The City of Murrieta (City) is pleased to present the Annual Comprehensive Financial Report (ACFR) for the fiscal year that ended June 30, 2024. The information found in this report is provided by the Murrieta City Manager and Finance Department to the City Council and the public to inform those interested in the City’s fiscal condition.
The City assumes full responsibility for the completeness and reliability of the information contained in this report and has established a framework of internal controls for this purpose.
Because the cost of any internal control should not outweigh its benefit, internal controls have been designed to provide reasonable, rather than an absolute, assurance that the financial statements will be free from material misstatement.
The independent auditing firm of Rogers, Anderson, Malody, and Scott, LLP has issued an unmodified (clean) opinion on the City’s financial statements, indicating they are free from material misstatement and present fairly the financial position and results of operations of the city's various funds and account groups. All disclosures necessary to enable the reader to understand the City’s financial activities have been included.
A section titled Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE CITY OF MURRIETA
The City of Murrieta is located in Southwestern Riverside County and encompasses approximately 35.5 square miles.
The City of Murrieta was incorporated on July 1, 1991, after voters approved cityhood by an overwhelming margin in
November 1990. It is organized as a general law California city and operates under a council/manager form of government.
Murrieta has experienced significant growth since the mid- 1980s and was previously one of the fastest-growing areas in California. With a population of approximately 2,500 in 1980, Murrieta is now home to an estimated 109,177 residents. i
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The Murrieta Community Services District (CSD) was established on July 1, 1993, as a subsidiary of the City of Murrieta to assume functions previously provided by Riverside County Service Area 143. The CSD offers parks and recreation services to the city’s residents, as well as street lighting, sweeping, and landscape maintenance services.
The Murrieta Fire District was formed in 1947 as an independent, self-governed special district that provides fire protection services. On July 1, 1993, the district was reorganized as a subsidiary district of the City. Although technically still named Murrieta Fire District, as of April 2017, the Fire District is now referred to as Murrieta Fire & Rescue.
The Murrieta Redevelopment Agency (RDA) was established in July 1992. An amended redevelopment plan was adopted in June 1999 in conformity with the City’s General Plan. The original RDA plan consisted of approximately 1,127 acres in seven non-contiguous land areas throughout the City. The Plan was amended again in July 2006 to add another 1,193 acres.
On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26, which directed the dissolution of all redevelopment agencies in California. The RDA was dissolved and ceased to operate as a legal entity on February 1, 2012. This action has impacted the reporting entity of the City, which had previously reported the redevelopment agency as a blended component unit. Now, the activity of the former RDA is being reported in a fiduciary fund named the Successor Agency to the former Murrieta Redevelopment Agency (Successor Agency) in the City’s financial statements through the remainder of the dissolution period. The dissolution period will extend until all recognized obligations of the former RDA are defeased (paid in full). The City elected to create the Murrieta Housing Authority to continue the housing activities of the former RDA. The activity of the Housing Authority is being reported as a special revenue fund.
The Murrieta Public Library officially opened in April 1999, moved to its current location in March 2007, and is under the full authority of the City of Murrieta. The Murrieta Public Library is a welcoming space for all, dedicated to providing free and equitable access to information, services, and technology. The Library is committed to empowering individuals and promoting resilience and a sense of belonging by providing informational, recreational, and educational resources and programs for all ages.
GOVERNANCE
The City is governed by the Murrieta City Council, consisting of five council members under the council-manager form of government. A mayor and mayor pro-tempore are selected as presiding officers by the City Council from amongst the five council members for one-year terms. The City of Murrieta has transitioned to a system where City Council members are elected by district instead of serving "at large.”
The City Council appoints the City Manager and City Attorney. The City Manager appoints all other staff positions. The City Council acts as the Board of Directors for the Murrieta Fire District, Community Services District, Library District, Housing Authority, Successor Agency to the former RDA, and Murrieta Financing Authority.
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MUNICIPAL SERVICES
The City of Murrieta provides a full range of municipal services to its residents and stakeholders:
Animal Control Services Library and Arts Services
Community Development Services Park Land Services
Economic Development Services Recreation Services
Fire and Emergency Medical Services Street Construction and Maintenance General City Administration Traffic Control Services
Law Enforcement Services
FISCAL AND OPERATING CHALLENGES
In Fiscal Year 2023/24, we saw inflation rates returning toward the normal range of 3% compared to the unprecedently high inflation rates of 8.5% in Fiscal Year 2021/22. The Federal Reserve (Fed) addressed the high inflation rates by raising interest rates. While higher interest rates allow for opportunities to reinvest at higher-yield investments, they negatively impact consumer spending since financing costs to purchase a house, car, and other high- ticketed purchases now cost more. The Fed cut interest rates on September 18, 2024, by 50 basis points. This was the first cut in four years. The Fed has reduced interest rates in response to the decline in inflation, with the aim of supporting economic growth and stabilizing the labor market. This reduction in interest rates is expected to encourage increased consumer spending on homes, automobiles, and other significant purchases.
Murrieta’s unemployment rate of 4.3% as of September 2024 was lower than the County and State's 5.6% and 5.3%, respectively. These rates are very comparable to the rates stated in our report from last year, which shows that the labor market has remained stable. For the City of Murrieta, we are still experiencing recruitment challenges, but the labor pool is improving.
We are seeing more qualified candidates for each position that we are recruiting for.
Bond Rating
In recent years, S&P Global Ratings have upgraded the City’s bond indebtedness for the 2020A Lease Revenue Refunding Bond, the Murrieta Successor Agency 2017 Tax Allocation Refunding Bonds, and the 2023 Local Agency Revenue Refunding Bonds. These credit rating upgrades demonstrate the strength of the underlying local economy and the City’s financial condition.
The table below summarizes the recent credit rating upgrades:
Type of Bonds/Debt Agency
Previous
Credit
Rating
Current
Credit
Rating
Lease Revenue Refunding Bonds City of Murrieta A+ AA-
Tax Allocation Refunding Bonds Murrieta Successor Agency A A+ CFD Special Tax Refunding Bonds Murrieta Public Financing Authority A A+ 273
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Grants
Grant funding is an effective way to maximize our local financial resources to provide more support and services for our residents. Staff actively pursue grant opportunities for capital purchases and expand programs provided to residents and employees. Below is a non- inclusive list of grants the City was awarded during Fiscal Year 2023/24. Many more previously awarded grants were utilized during the fiscal year.
Department/
Program Grant Purpose Amount
Public Works RCTC MARA Grant To use the Funds on the Murrieta Hot Springs Widening - Margarita road to SR-79.
$3,000,000.00
Public Works FY24 Rubberized
Pavement Grant
To help rehabilitate the pavement on Murrieta Hot
Springs Rd to Margarita Rd, Los Alamos Rd from
Lincoln Ave to the I-215 interchange, Antelope Rd
from Mapleton Ave to Heritage Marketplace, Elm St
from Adams Ave to Jefferson Ave, and Cherry St from
Adams Ave to Jefferson Ave.
$ 145,720.00
Police Patrick Leahy
Bulletproof Vest
Partnership (BVP) –
FY 2023
To reimburse the City for purchases of Bulletproof
vests for Police Officers.
$ 1,095.64
Police OTS Grant Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes
involving alcohol and other primary crash factors.
$ 210,000.00
Police Cal DOJ Tobacco
Grant
To help reduce illicit sales of Tobacco products to
minors.
$ 134,061.00
Library Library for All - LSTA
Grant
To improve library services and access to information
for all types of libraries and communities.
$ 20,000.00
Library Lunch at the Library Collaborate with MVUSD to provide summer outreach services to disadvantaged students through pop-up
library programs and activities at their summer meal
sites.
$ 11,700.00
Library Community
Improvement
Designation Grant
Funding went to support the Library expansion project $ 25,900.00 Homelessness Housing,
Homelessness
Incentive Program -
HHIP
It aims to improve health outcomes and access to
whole-person care services by addressing housing
insecurity and instability as social determinants of
health for the Medi-Cal population.
$ 225,716.33
Fire FY23 Emergency
Management
Performance Grant
Program
Improve emergency preparedness, develop risk-
based programs, and address prevention, protection,
mitigation, response, and recovery capabilities.
$ 24,680.00
Fire FY23 State Homeland
Security Program
Grant
To reduce the number of serious injuries and fatalities on public roads by establishing a statewide framework
for safety.
$ 15,978.00
City
Manager's
Office
SB1383 Organic
Waste Recycling
Grant
To reduce the amount of organic waste that ends up
in landfills and to rescue surplus food.
$ 292,904.00
City
Manager's
Office
Cal Recycle Beverage
Container Recycling
Grant
To reduce the amount of litter in beverage containers
in Murrieta,
$ 27,828.00
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Achievements
As of the date of this report, the City is honored to have received the following awards and recognitions:
2023 Best City in the Region
Murrieta has been voted the best city in the San Gabriel Valley/Inland Empire region in the Los Angeles Times’ Best of the Southland 2023 Survey. Thanks to the dedication and hard work of individuals, businesses, and organizations that consistently contribute to making Murrieta the best place to live, work, and thrive, we are proud to receive this
recognition.
2023 Top Workplaces
The City is honored to receive the Top Workplaces award by Inland Empire. This is a testament of the City Council and Management to always strive to move forward in the
right direction.
2024 Best City in the Inland Empire
The City is excited to share that Murrieta was voted as the 2024 Best City in the Inland Empire by readers of the Inland Empire Magazine. This is the first time Inland Empire Magazine has ranked the votes. The City of Murrieta continues to provide its residents and businesses with an environment where they can thrive and takes pride in its ability to be a great place for people to live, work, and play.
Fire Accreditation International Recognition
Murrieta Fire & Rescue recently renewed its accreditation status from the Commission on Fire Accreditation
International (CFAI). This recognition is a result of Murrieta Fire & Rescue’s commitment to excellence, demonstrated
through the voluntary self-assessment and accreditation program established by CFAI. Including Murrieta Fire &
Rescue, only 22 accredited agencies are in California, and only 308 are worldwide.
ECONOMIC CONDITION AND OUTLOOK
The City of Murrieta has a stable economic future, underscored by the continued growth in FY 2023/24. The City’s diverse and close-knit industry clusters have helped create a healthy and sustainable economy that generates optimism for our future.
The City of Murrieta is located at the confluence of the I-15 and I-215 freeways, close to San Diego, Los Angeles, and Orange Counties. This strategic location within Southern California 275
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makes it an attractive destination for businesses and residents and well-positioned to capture a competitive share of regional economic growth.
Since its incorporation in 1991, Murrieta’s population has grown substantially, and it was one of the fastest-growing cities in the state from 2000 to 2008. This can be attributed to its excellent climate, affordable homes, outstanding school system, low crime rate, and focus on outdoor living, with 53 City parks and countless recreation programs focusing on creating a community people want to call home. This year, the City saw the return of unparalleled permit applications with various new businesses, new housing, and major new medical developments under review.
The City has seen substantial housing growth in 2024, with 2,774 housing units pending approval, 3,594 units approved, and an additional 2,482 units under construction. This reflects a robust housing market in the city and brings in a new workforce to continue to fill our growing job market.
The unemployment rate has remained low, with Murrieta consistently ranking below the County of Riverside and State of California rates as previously stated. To help with workforce development and the creation of small businesses, the City developed the Murrieta Innovation Center (MIC) in 2014. It provides guidance to prospective business owners and start-up companies and is home to the first Genomics Research Lab in the region, along with ten biotech companies. In 2024, the City had completed design work for the MIC, which included the addition of a wet lab and creative office space. A grant from the US Department of Commerce partly funds this $3 million investment, and the County of Riverside contributed another $2.5M to the center. The businesses in the center have performed strongly, all receiving venture capital, grants, or some form of seed funding. Each year, the City of Murrieta accompanies the State of California on an international business recruiting event called Select USA; from this event, the city has signed multiple tenants to join the MIC, and now six international companies have joined the Murrieta Innovation Center.
The City’s Economic Development team works closely with the Chamber of Commerce to host workshops, business events, and annual job fairs to attract new businesses and help Murrieta-based enterprises grow and expand in the City.
The City saw significant development interest in 2024. There have been many major new commercial openings, including:
x The Murrieta Hot Springs Resort
x Trader Joe’s
x Talia’s Kitchen
x Home Depot
x Ross
x Capriotti’s
x Wann’s Bar & Grill
x Lynn’s Buffet
x Best Pizza & Brew
x Tikka Takka Indian Cuisine
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Many other successful companies are planning major future expansions, including Nikkiso Cryoquip, Carmax, Driveline, Walmart, and the next phase of the Makena Medical Center with a new Ambulatory Surgery Center. The Murrieta Auto Mall is seeing a resurgence, with a soon-to-be-named auto dealership coming in to complement BMW, Volkswagen, and West Coast Exotic Automobiles. In addition, the final pads in the Auto Mall have been sold to an Auto Group that will bring in a new car dealership.
Medical growth continues to fuel the City’s economy, with the following developments coming soon:
x Ambulatory Surgery Center in the Makena Medical site. x Ambulatory Surgery Center on Hancock west of Rancho Springs Medical Center.
There are many reasons why Murrieta is achieving growth at this pace, and public safety is always at the top of the list. According to FBI statistics, the city has been consistently ranked as one of the top three safest cities in the nation for the last decade among cities with a population of over 100,000 with respect to violent crimes. This exceptional safety rating can be credited to our highly skilled police department and a strong relationship with members of the community who work with the department to prevent and stop crime. Murrieta Fire & Rescue also has a strong bond with the community and is one (1) of the twenty (20) accredited fire departments in California by the Commission of Fire Accreditation International.
Overall, the City’s focus on the quality of life for families, public safety, and creating a beautiful environment continues to make Murrieta an attractive location for many families looking to raise their children in a strong, vibrant, and safe community.
FINANCIAL INFORMATION
The City’s financial records for general governmental operations are maintained on a modified accrual basis. Revenues are recorded when available and measurable, and expenditures are recorded when the services or goods are received and the liability is incurred.
City management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of the control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management.
Reporting Entity
This ACFR presents information on the financial position and operations of the City as a single comprehensive reporting entity. The City, Murrieta Fire District, Murrieta Community Services District, Murrieta Public Library, and the Murrieta Financing Authority have been included in this report per criteria established by the Governmental Accounting Standards Board (GASB).
The reporting entity consists of all of the funds and account groups of the primary government (the City of Murrieta) and its component units, which are legally separate organizations.
Blended component units, which are legally separate from the City but are so intertwined with 277
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the City that they are in substance the same as the City, include the Murrieta Fire District, Murrieta Community Services District, and the Murrieta Public Library.
Long-term Financial Planning
Multi-year financial planning, including adopting a two-year budget and a five-year capital improvement plan (CIP), provides the City Council, departments, and the public with a greater plan regarding ongoing funding and staffing for programs, projects, and services. The City manages a long-term financial plan. The long-term financial plan projects revenues and expenditures over a long-term period, using assumptions about economic conditions, future spending scenarios, and other salient variables. The two-year budget, five-year CIP plan, and long-term financial plan are processes designed to bring continued transparency to the City’s finances, operations, and strategic goals internally with the City Council, City Manager, employees, and departments and externally with residents and businesses.
For Fiscal Years 2023/24 and 2024/25, the City Council adopted a balanced biennial operating budget of $172,605,264 and $180,706,542, respectively. As part of the City’s budget framework, the City Manager delivers quarterly reports and recommends providing budget updates to the City Council based on revised revenue and expenditure forecasts. The adopted budget provides a sound financial plan and supports the City Council’s commitment to fostering quality of life for the residents of Murrieta.
Measure T is a one-percent (1%) general-purpose transaction and use tax (or district sales tax), with revenues going directly to the City of Murrieta. Voters approved Measure T on November 6, 2018. The City began receiving Measure T revenues in April 2019. The City has experienced steady growth, but funding for public safety programs and other essential city services has not kept pace to match the increased demand for these vital services. Measure T provides a local revenue source for increased funding of essential services, including but not limited to public safety services such as neighborhood police patrols, crime prevention programs, improved response times for emergency calls, improved fire protection, and paramedic services, improved public infrastructure, and community facilities and services. In addition, Measure T provides future fiscal sustainability through funding reserves and establishing new sustainability funds. As of June 30, 2024, the district sales tax (Measure T) proceeds were approximately $28.2 million.
Budget Authority
The City Council approves a two-year operating budget and an annual five-year CIP, with public meetings/hearings conducted before the budget and CIP adoption. When required during the year, supplemental appropriations are also approved by the City Council.
Expenditures may not exceed appropriations at the fund level. The City Manager is authorized to approve operating transfers between departments within a fund without limit. All other budget adjustments (increase in appropriation or transferring budget between funds) require City Council approval. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget.
The City’s five-year CIP provides a financial plan to fund the City’s critical and essential infrastructure projects. Over five years (FY 2024/25 through FY 2028/29), the City anticipates investing $110,335,112 in essential assets. Various funding sources provide funding for these projects, including the General Fund, Measure T Fund, Development Impact Fees, 278
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transportation, grants, and reimbursement agreements. The following table summarizes the various funding sources:
The CIP reflects the needs of our residents to ensure the streets, bridges, traffic signals, storm drains, public buildings, and parks are well maintained and operated for optimum health and safety, increased efficiency and functionality, enhanced attractiveness, and beautification.
The following table summarizes the projected capital uses:
The CIP document places equal emphasis on planning for new projects and improving and preserving existing capital assets. The City’s CIP document includes a list of Capital Improvement Projects by funding source and a list of unfunded Capital Improvement Projects.
This is an attempt to identify and quantify the City’s true CIP needs not only in the short term but also in the long term. Although the list is comprehensive and reflects a good assessment of the City’s needs, it is by no means a complete list, as additional assessments need to be done in the coming years to refine this list, create guidelines to prioritize projects, and prepare a strategic approach to fund and complete these unfunded projects.
The city's website has an electronic copy of its adopted two-year budget and five-year CIP plan, which can be found here.
The CIP plan addresses the City’s critical and essential infrastructure projects. During the Fiscal Year 2023/24, the City substantially completed the following CIP projects:
CIP 8513: Veteran's Memorial at Town Square Park $737,248 The Vietnam War portion of the project was completed and inaugurated during the Veteran’s Day parade in November 2023. The estimated total cost of the Vietnam War portion of the 279
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project is $737,248, and it is currently in the closeout phase. The project is a dignified Veteran’s Memorial at Town Square Park reflecting contributions made by veterans from all military branches throughout the history of the United States and acknowledging and honoring the courage, commitment, and heroism demonstrated by all veterans past and present. The inception-to-date cost is approximately $1.3 million. The proposed additional commitment to the project's next phase is $600,000.
CIP 10042: Automated Book Bin Sorter Replacement $165,245 The automated book bin sorter machine was completed in August 2023. The project replaced the current system at the Murrieta Public Library to effectively streamline the process of handling approximately 20,000 books per month.
CIP 13040/13045: Pedestrian Safety Enhancements $707,382 The project consisted of the installation and retrofitting of crosswalks and intersections to improve access for disabled persons under the Americans with Disabilities Act (ADA) and is funded utilizing Community Development Block Grant (CDBG) and Gas Tax funds in the areas of California Oaks Road and Clinton Keith Road, Bladen Avenue and Hancock Whitewood Avenue; Road Avenida and Acacias, Willowbend Drive, Calle De Tres Amigos, Blackthorne Drive, Day Lily Drive, Via Temprano (N), Via Monserate (N) and Alta Murrieta Apartments Drive. The project was substantially completed in October 2023.
CIP 21023121024: Library Roof Project $382,144 & Library HVAC Controls Project $139,580 The project replaced and repaired the 15-year-old roof from the visible wear and tear and leaking issues. The Heating, Ventilation, and Cooling (HVAC) project replaced and upgraded the 15-year-old HVAC control system to improve operational efficiency and save energy. Both projects were substantially completed in November 2023.
CIP 21035: Police Department Administrative Offices Improvements Project $65,864 The project consists of optimizing existing space for improved ergonomics due to increased staff and optimizing space for more efficient storage of confidential and sensitive documents.
CIP 21040: City Hall Annex Project $45,323
The project will provide a working space for current and future employees and anticipate housing up to 21 employees. It is estimated to be substantially completed by August 2024.
The final project cost will be reported in the following capital improvement budget update.
MAJOR ACCOMPLISHMENTS AND INITIATIVES
The City accomplished various projects and programs that support the City Council’s goals and objectives. These accomplishments were completed in addition to performing the day-to- day operating activities required of a city government. The following are the significant initiatives completed this year:
x Received the Distinguished Budget Award from the Government Finance Officer Association for the Fiscal Years (FY) 2023/24 and FY 2024/25 Biennial Budget Report. 280
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x Received the Capital Budget Excellence Award from the California Society of Municipal Finance Officers for the Capital Improvement Plan & Budget for FY 2024/25. x Received Excellence in Financial Reporting from the Government Finance Officer Association for FY 2022/23 Annual Comprehensive Financial Report. x Achieved bond rating of A+ in our most recent bond refunding. x Processing Environmental Impact Report for I-215/Keller Road Interchange with Caltrans.
x Completed hundreds of building and fire inspections for Murrieta Hot Springs Resort throughout the year, which resulted in their opening on January 8, 2024. x Ranked 1st in “Crimes Against Property” and 3rd in “Crimes Against Persons” in the State of California for cities with a population between 100,000 to 249,999 inhabitants. x Processing of the Shops at the Triangle. A 279,538 sq. ft. commercial center on approximately 46 acres of the 64-acre specific plan area consisting of 18-22 buildings.
The City Council approved a specific plan amendment in the summer of 2024. Plans for a groundbreaking in progress for fall 2024.
x MFR achieved Renewed Accredited Agency Status from the Commission on Fire Accreditation International.
x Signed Newman Hospitality Group to bring four large-scale events to Town Square Park Amphitheater in 2024. The first, Jazz and Blues Festival was a successful event. x The City hosted two Police Chiefs' Roundtable events in collaboration with the City’s risk pool, PERMA, to provide the Police Chiefs in various member agencies with an opportunity to learn and discuss risk management strategies that impact City costs and staffing shortages.
x Completed construction and unveiled the Vietnam Veterans Memorial Wall at Town Square Park at the Veteran’s Day Parade.
x Completed initial 2023 implementation items for Housing Element certification, resulting in the Housing Element being certified by State Housing and Community Development (HCD) on 10/26/23.
x Staff worked with RCA/Agencies on the Los Alamos Phase II Sports Park (Soccer project) and are preparing the necessary information to support the required agency permits to grade the property. The Criteria Refinement application to Agencies is planned for submission this summer.
x Permit System: Enterprise Permitting & Licensing (EP&L)—Online permitting is now available to improve customer service.
x Developed and implemented an Alternative Work Schedule policy to allow the City to open for business every Friday.
x Due to overcrowding, a coordinated multi-department effort relocated HR and CSD across Jefferson Ave. in the new City Hall Annex.
x The Police department rolled out the Live911 system, which allows officers to listen to 911 calls in real-time and before they are dispatched, improving response time. 281
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x The City Clerk’s office deployed the new Legistar agenda management system to improve the agenda process and end product.
x The City entered into an MOU with the City of Wildomar to coordinate and provide homeless services.
x Utilizing the $500,000 in SAMSHA funding awarded by Congress Member Ken Calvert, Baker Tilly was competitively selected as a consultant to create and formalize the Regional Homeless Alliance to create a Homeless Action Plan for the region. x Facilitated the Trader Joe’s opening in Murrieta and assisted Home Depot with their development in The Orchard shopping center.
x Worked with Western Municipal Water District on new water and road infrastructure in the Madison Corridor to create the opportunity for development of a job corridor west of I-15, east of Jefferson, and south of Murrieta Hot Springs Road. x Added 20 Flock License Plate Reader (LPR) cameras, with 40 now deployed throughout the city.
x Launched the employee-focused “Be Well Murrieta” wellness program, which incorporates training, unique challenges, and prizes. Two hundred ninety accounts have been activated, and 14,517 challenges have been accomplished by participating employees.
x Assisted Downtown Night Market Events with signage and placement of Meridian barricades to provide a safe pedestrian environment during the Downtown Market Night Events.
x $3MM in Measure A Regional Arterial funding accepted from Riverside County Transportation Commission for the Murrieta Hot Springs Road widening from Margarita Road to Winchester Road, CIP 8079 (fall 2024). x The Library began providing passport services, and 180 passports have already been processed.
x Children’s Area Expansion and Storytime Room – Work continues with an architecture firm on the schematic design and detailed cost estimate. x The Summer 2024 Aquatics Program lasted from June 1 to September 29 at Vista Murrieta High School and offered lap swimming, water exercise, swimming lessons, and public swimming.
x Completed equipment purchase and design for Tot Lot Replacement Project Phase 1, which will construct new playgrounds where none exists today at Northstar Park, Monte Vista Park, and Oak Terrace Park, and replace equipment at Palomar Park.
Anticipate awarding of construction contracts by June 2024. x Completed purchase of equipment, design, and construction bidding for Tot Lot Replacement Project Phase 2, which will result in new tot lot equipment being installed at Alta Murrieta Park, Firefighters Park, Eastgate Park, Rancho Acacias Park, and Sycamore Park.
x Completed the design for installing new lighting for the tennis and pickleball courts at Cal Oaks Sports Park.
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x Completed design for construction of two pickleball courts at Firefighters Park.
Anticipate construction will be completed by September 2024. x The City entered into a three-year reimbursement agreement with Riverside County’s Flood Control for $75,000 annually. The first clean-up was held in December 2023 at a Flood Control Property in southwest Murrieta, where 28.8 tons of debris was removed.
x Completed the new Wet Lab, Dry Lab, and Office Space design phase at the Murrieta Innovation Center.
x Launched the department’s first-ever Support K9 Program, Simpson. x Assisted with the Civic Center Surplus Land process, to be completed in spring 2024. x Helped negotiate four new labor contracts with police, fire, police management, and fire management.
A complete list of Citywide accomplishments can be found on the City’s website here.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Assoc iation of the United States and Canada (GFOA) awarded a Certificate of Ac hievement for Excellence in Financial Reporting to the City of Murrieta for its ACFR for the fiscal year ending June 30, 2023. A government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report to be awarded a Certificate of Achievement. This report must satisfy both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for one year. The City strives to develop an ACFR that will continue to meet the Certificate of Achievement Program’s requirements. We believe our current report conforms to the program requirements, and we are submitting it to the GFOA to determine its eligibility for the Certificate of Achievement for Excellence in Financial Reporting.
The preparation and development of this complex report results from the cooperation and dedication of all City staff and the diligent work of the entire Finance Department, particularly Jennifer Terry, Finance Manager, and Ashley Lopez, Accounting Supervisor. I also appreciate the professionalism of the staff of Rogers, Anderson, Malody, and Scott, LLP, who audited this financial report. I would also lik e to express my appreciation to the City Council for their leadership and support throughout the year and their dedication to the citizens of Murrieta.
Respectfully submitted,
Kim Summers Javier Carcamo
City Manager Director of Finance
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Independent Auditor’s Report
City Council Members
City of Murrieta
Murrieta, California
To the Honorable City Council
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 Murrieta (the City), as of and for the year ended June 30, 2024, 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, 2024, and the respective changes in financial position and, where applicable, cash flows thereof 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 the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matters
As described in Note 1 to the financial statements, in the year ended June 30, 2024, the City adopted new accounting guidance under Statement of Governmental Accounting Standards Board (GASB Statement) No. 100, Accounting Changes and Error Corrections . Our opinions are not modified with respect to this matter.
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As described in Note 19 to the financial statements, the fund balances of certain funds and net position of governmental activities at July 1, 2023 were restated for the correction of an error. 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 the 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.
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:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x 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.
x 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. x 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.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those 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.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of proportionate share of the net pension liability for the miscellaneous and safety plans, the schedules of plan contributions for the miscellaneous and safety plans, the schedule of changes in the net OPEB liability and related ratios, schedule of contributions for OPEB and the budgetary comparison schedules for the General Fund and major Special Revenue Funds, identified as required supplementary information in the accompanying 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.
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 fund financial statements and schedules (supplementary information) 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 (ACFR). 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.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 12, 2024 on our consideration of the 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 internal control over financial reporting or on compliance.
That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
San Bernardino,
December 12, 2024
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City of Murrieta
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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As management of the City of Murrieta, we offer readers of the City of Murrieta’s financial statements this narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with the enclosed letter of transmittal and basic financial statements.
FINANCIAL HIGHLIGHTS
Programs and general revenues 173,354,606 $
Cost of governmental activities (156,934,595)
Net revenues over expenditures 16,420,011
Net Position at Beginning of Year, as Restated 558,681,375 Net Position at End of Year 575,101,386 $
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of Murrieta’s basic financial statements. The City of Murrieta’s basic financial statements comprise three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements.
COMPONENTS OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview of the City of Murrieta’s finances in a manner similar to a private-sector business.
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The statement of net position presents information on all of the City of Murrieta’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a valuable indicator of whether the financial position of the City of Murrieta 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 (i.e., uncollected taxes and earned but unused vacation leave).
Both government-wide financial statements distinguish functions of the City of Murrieta that are principally supported by taxes and intergovernmental revenues (government activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Murrieta include general government, public safety, community development, parks and recreation, and public works.
The government-wide financial statements include not only the City but also the Murrieta Financing Authority, the Murrieta Fire District, the Murrieta Community Services District, and the Murrieta Public Library. Although these entities are legally separate, they function, for all practical purposes, as a part of the City. Therefore, they have been included as blended component units as an integral part of the primary government.
Fund financial statements
A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City of Murrieta, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Murrieta can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds
Governmental funds account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide statements, governmental fund financial statements focus on near-term 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 fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Murrieta maintains 23 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Fire District Special Revenue Fund, the Federal Grants Special Revenue Fund, and the Development Impact Capital Project Fund, all of which are considered to be major funds. Data from the other 19 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 in the supplementary information section of this report. 294
City of Murrieta
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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The City of Murrieta adopted an operating budget for its General Fund and two of the three other major funds. To demonstrate compliance with the budget, a budgetary comparison statement has been provided for the General Fund, the Fire District Fund, and the Federal Grants Special Revenue Fund.
Proprietary Funds
The City of Murrieta maintains only the internal service fund type of proprietary funds. The internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions.
The City uses internal service funds to account for its Information Technology and Risk Management activities. Because the City does not maintain enterprise-type proprietary funds, all of the internal service funds’ activities have been included within governmental activities in the government-wide financial statements.
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 due to the fact that the resources of those funds are not available to support the City of Murrieta’s own programs.
Notes to the Financial Statements
The notes provide additional information essential to fully understanding the data provided in the government-wide and fund financial statements.
Combining Statements
The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes to the financial statements.
Government-Wide Financial Analysis
Our analysis in the Management’s Discussion and Analysis focuses on the net position (Table 1) of the City’s governmental activities reported in the government-wide statements.
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Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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TABLE 1
NET POSITION
For the years ended June 30, 2024 and 2023
2024 2023 Change
Current and Other Assets 327,141,523$ 299,198,009 $ 27,943,514 $ Capital Assets, Net 442,471,511 447,446,827 (4,975,316) TOTAL ASSETS 769,613,034 746,644,836 22,968,198 Deferred Outflows of Resources 52,618,734 50,081,038 2,537,696 Current and Other Liabilities 49,081,383 42,113,359 6,968,024 Long-term Liabilities 187,549,732 182,942,531 4,607,201 TOTAL LIABILITIES 236,631,115 225,055,890 11,575,225 Deferred Inflows of Resources 10,499,267 12,585,317 (2,086,050) Net Position:
Net Investment
In Capital Assets 432,409,678 436,191,370 (3,781,692) Restricted 133,963,316 123,733,392 10,229,924 Unrestricted 8,728,392 (840,095) 9,568,487 TOTAL NET POSITION 575,101,386$ 559,084,667 $ 16,016,719 $ Governmental Activities
The City’s combined net position as of June 30, 2024, as shown in table 1, was $575,101,386. The City’s net position increased by $16,016,719 compared to the prior fiscal year. The increase in the City’s net position is primarily due to a rise of $25,505,894 in total assets, net of deferred outflows of resources, and an increase of $9,489,175 in total liabilities, net of deferred inflows of resources. The most substantial growth was seen in the restricted net position, which rose by $10,229,924, with $9,107,071 allocated for Public Works. The unrestricted net position rose by $9,568,487.
Current assets increased by $27,943,514, or 9.34%, compared to prior year balances. The increase is mostly attributable to the following items: an increase in cash and investments of $26,183,721 and an increase in the sum of all receivables totaling $4,400,647.
The capital assets net of accumulated depreciation has decreased by $4,975,316. The decrease represents the difference between additions, deletions, and depreciation in the current year. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Governmental activities' capital assets are discussed in more detail in the capital asset section of this report, and additional detailed information can be found in the Notes to the Basic Financial Statements (Note 6 – Capital Assets).
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Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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Changes in the various components associated with Governmental Accounting Standards Board (GASB) statement 68 Accounting and Financial Reporting for Pension, statement 75 Accounting and Financial Reporting for Postemployment Benefits Other than Pension (OPEB), and statement 87 Leases impacted deferred outflows and inflows, and changes in pension, OPEB and leases liabilities for the year. GASB 68 and GASB 75 pronouncements required the City to record the net pension and OPEB liabilities on the books. The deferred outflows of resources increased by $2,537,696, while the deferred inflows of resources decreased by $2,086,050.
Current liabilities increased by $6,968,024, or 16.55%. The increase is primarily attributable to the increase in compensated absences of $4,224,298. Another contributing factor to the increase was an increase of $426,906 in the GASB 96 accounting for software licenses. The remaining increase of $599,368 came from increasing debt service, note payable, lease liability, and claims and judgment. Accounts payables increased by $1,658,909, accrued liabilities increased by $1,585,676, unearned revenue decreased by $2,136,457 due to recognized grant revenue from the American Rescue Plan Act grant, and the remaining increase of $606,326 came from other liabilities.
Long-term liabilities such as outstanding debt, leases, employee benefit accruals, claims and judgments, and OPEB liability increased by $4,607,201, an increase of approximately 2.5% from the prior year. The most significant addition is attributable to the increase in actuarial valuation for OPEB liability of $6,559,867 and an increase in pension liability of $7,717,344. Other notable increases were from software licenses and a commercial lease for expanded staff space totaling $1,626,792. Bonded debt decreased by $7,584,848 due to annual principal payments and compensated absences reduced by $3,627,885 as a result of a greater shift in due within one year. All other outstanding debt categories decreased by $84,069. Debt activities for the governmental funds can be found in the Long-Term Debt section of this report, and additional detailed information can be found in the Notes to the Basic Financial Statements (Note 7 – Long- Term Debt).
Approximately 75.0% of the City's net position is a net investment in capital assets (i.e., land, construction in progress, buildings, land & building improvements, parkland improvement, vehicles, equipment, and infrastructure), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; therefore, these assets are not available for future spending.
The restricted net position represents resources subject to external restrictions and earmarked for a specific purpose. The unrestricted net position represents the resources that may be used to meet the government's ongoing obligations to creditors and services to residents.
Government Activities
The Statement of Activities presents program revenues, expenses, and general revenues in detail.
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Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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TABLE 2
CHANGES IN NET POSITION
For the years ended June 30, 2024 and 2023
2024 2023 Change
REVENUES:
Program Revenues:
Charges for Services 28,113,801 $ 26,358,037 $ 1,755,764 $ Operating Grants and Contributions 9,317,753 7,658,257 1,659,496 Capital Grants and Contributions 15,917,682 27,420,836 (11,503,154) Total Program Revenues 53,349,236 61,437,130 (8,087,894) General Revenues:
Taxes:
Property Taxes 41,557,398 38,545,304 3,012,094 Sales Taxes 53,880,062 55,580,286 (1,700,224) Franchise Taxes 5,156,401 4,915,332 241,069 Business License Tax 1,185,824 928,285 257,539 Transient Occupancy Taxes 1,989,170 1,907,457 81,713 Property Transfer Tax 686,263 576,080 110,183 Motor Vehicle License 136,741 113,965 22,776 Investment Income 14,329,611 4,579,089 9,750,522 Gain on Sale of Capital Assets 46,631 21,566 25,065 Miscellaneous 1,037,269 1,082,009 (44,740) Total General Revenues 120,005,370 108,249,373 11,755,997 TOTAL REVENUES 173,354,606 169,686,503 3,668,103 EXPENSES:
General Government 20,331,417 17,679,910 2,651,507 Public Safety 84,583,049 72,506,682 12,076,367 Community Development 8,168,208 8,202,449 (34,241) Parks & Recreation 20,377,781 19,693,193 684,588 Public Works 20,239,187 19,808,063 431,124 Interest on Long-term Debt 3,234,953 2,462,044 772,909 TOTAL EXPENSES 156,934,595 140,352,341 16,582,254 CHANGE IN NET POSITION 16,420,011 29,334,162 (12,914,151) NET POSITION, BEGINNING OF YEAR, AS RESTATED 558,681,375 529,750,505 28,930,870 NET POSITION, END OF YEAR 575,101,386 $ 559,084,667 $ 16,016,719 $ Governmental Activities
The City’s combined net position as of June 30, 2024, as shown above in table 2, is $575,101,386. The City’s net position increased by $16,016,719 or approximately 2.86% compared to the prior fiscal year. The City had a beginning of year restatement of $403,292, which affected the General Fund and Housing Authority. Additional information can be found in Note 19. This increase occurs when spending is less than the revenues received. There were several reasons for the increase in net position, including improved property taxes, investment earnings, charges for services, and operating and grant revenues. 298
City of Murrieta
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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When combining general and program revenues, sales and property taxes make up approximately 55.1% of total revenues, which are the City’s two most significant revenue sources. As of June 30, 2024, program revenues totaled $53,349,236, while general revenues totaled $120,005,370. Total revenue for the year totaled $173,354,606, an increase of $3,668,103 compared to the prior fiscal year. The most noteworthy changes are as follows:
Program revenues decreased by $8,087,894 to $53,349,236, or approximately 11.8% from the previous year.
x Charges for services increased by $1,755,764, or 6.7%, during the fiscal year 2023/24 primarily due to the following: charges for services for Community Development were higher by $5,956,188 compared to the prior year. Parks and Recreation revenue was steady, with an increase of $240,963 compared to the prior year. While General Government, Public Safety, and Public Works experienced reductions over the prior year of $1,109,623, $857,755, and $2,474,009, respectively.
x Operating contributions and grant revenue increased in total by $1,659,496. That represents an increase of approximately 21.7% as compared to last year. The most significant increase occurred in the Parks and Recreation category by $2,391,347, while General Government decreased by $1,794,209. Public Safety and Community Development had more moderate increases of $749,083 and $313,275, respectively. This year, capital grants and contributions decreased by $11,503,154, or 41.95%. The decrease is mainly in the Public Works category due to development impact fees and federal and state grants.
General revenues increased by $11,755,997 to $120,005,370 in the current year.
x The most significant increase in general revenues was property taxes by $3,012,094, and investment income by $9,750,522. This represents an increase of approximately 7.8% in property tax revenues and 212.9% in investment income.
x The increase in property tax revenue was from new residential and commercial developments and changes in valuation due to existing home sales. x The increase in investment income is attributable to the higher investment yields in the City’s investment portfolio, Local Agency Investment Fund, and Cash Sweep investment program. Additionally, due to a favorable bond market, the value of our investment portfolio has increased, which required a GASB Statement No. 31 entry, which increased investment earnings by $3,739,260. The dividends earned through June 30, 2024, in the Cash Sweep investment program total $5,247,246.
x Transient Occupancy Tax (TOT) increased by $81,713, or 4.3%, from the prior year. TOT revenues increased slightly over the prior year. This can be attributed to the Murrieta Hot Springs Resort opening for business in February 2024 after being closed to the public for more than thirty years and being run as a Bible college.
x Sales tax decreased by $1,700,224 or 3.1% from the prior year. Inflation has negatively impacted sales tax generation, particularly in the auto sale, building and construction, and fuel and service station industries. The Federal Reserve has been addressing inflation by managing interest rates, which has an impact on large ticket purchases that require financing.
Total governmental activities expenses increased by $16,582,254 from $140,352,341 to $156,934,595, or approximately 11.8% compared to the prior year.
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x The General Government, Public Safety, Public Works, and Parks and Recreation expense categories experienced an increase in expenditures associated with personnel-related salary and benefits as a result of new labor agreements and increases in operating-related expenses such as legal, contract services, landscape maintenance, and animal control services.
Chart 1 – Expenses & Program Revenues
This chart highlights the cost for each of the City’s five largest programs. General Government, Public Safety, and Community Development are funded with general fund revenues such as taxes, grants and contributions, and other sources. The chart indicates that the overall cost of the government is more than the revenues generated to support it.
Parks & Recreation is primarily funded by Development Impact Fees (DIF), which are, in turn, allocated towards construction capital projects. The operating expenditures for Parks & Recreation are primarily funded by assessments and charges for services, with General Fund revenues providing additional subsidies as needed. The Public Works program is also mainly funded by DIF, capital grants, and contributions, which are used for large capital projects.
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Financial Analysis of the City’s Funds
The City of Murrieta uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City of Murrieta’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Murrieta’s financing requirements. In particular, unassigned fund balance may serve as a valuable measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Murrieta’s governmental funds reported combined ending fund balances of $276,099,682, an increase of $26,710,713 or approximately 10.71% compared to last year's governmental funds balance. The change in fund balance for the General Fund column totaled $16,140,781, broken down by fund as follows.
Fund Title
Change in Fund
Balance
General Fund 10,893,353 $
Transaction Sales Tax (Measure T) 5,132,987
General Capital Fund 114,692
Traffic Safety Fund (2,034)
Crime Prevention Fund (38,899)
Vehicle Replacement Fund 40,682
Total Net Changes in Fund Balance 16,140,781$
Additional information can be found in the consolidating schedule on pages 96 of this report.
The other net changes in fund balances in the governmental funds include an increase of $4,154,681 for the Capital Project Development Impact Fee fund, $918,004 for the Fire District fund, and $5,470,536 for the Non-Major Governmental Funds. The non-Major Government Fund - fund balance includes the Debt Service fund balance of $1,883,583, which is now reported as a Non-Major Governmental Fund and a beginning balance restatement of $24,635. The Federal Grant fund's negative unassigned fund balance was reduced by $26,711 and is due to pending grant reimbursements. The General Fund increased by $15,762,124 net of a beginning balance restatement of $378,657. Additionally, Debt Service Fund 2016A LARB was removed from a major fund classification and is now reported as a nonmajor fund.
In accordance with GASB Statement No. 54 (thoroughly discussed in the notes to the financial statements Note 9 - Fund Balance), the combined ending fund balance of $276,099,682 is broken down as follows:
Fund Balance Classification 2024 2023 Change
Non-Spendable 4,310,607 $ 4,738,334 $ (427,727) $ Restricted 133,463,316 123,233,392 10,229,924
Committed 86,200,190 51,229,664 34,970,526
Assigned 52,482 57,042 (4,560)
Unassigned 52,073,087 70,533,829 (18,460,742)
Total Fund Balance 276,099,682$ 249,792,261 $ 26,307,421 $ Governmental Funds
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The non-spendable category represents that portion of fund balance that cannot be spent because it is either (a) not in a spendable form or (b) legally or contractually required to be maintained intact. The restricted category represents that portion of fund balance that reflects constraints placed on the use of resources that are either (a) externally imposed by creditors, grantors, contributors, or laws/regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. The committed category represents that portion of fund balance that can only be used for specific purposes pursuant to constraints imposed by formal action of the City of Murrieta’s highest level of decision-making authority (City Council) and remains binding unless removed in the same manner. The assigned category represents that portion of fund balance that includes amounts constrained by the City of Murrieta’s intent to be used for specific purposes that are neither restricted nor committed. The intent was established at either the highest level of decision-making or by an official designated for that purpose, typically through the adoption of the Budget. The remaining category, unassigned, is that portion of fund balance that does not fall into one of the four other categories and may only be reported as a positive number in the General Fund. In other governmental funds, if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned, it may be necessary to report a negative unassigned fund balance.
General Fund
For the financial statement presentation, the General Fund column includes the following funds: General Fund, Measure T Fund, General Capital Fund, Traffic Safety Fund, Crime Prevention Fund, and Vehicle Replacement Fund. At the end of the fiscal year, the General Fund’s revenues exceeded expenditures, including other financing sources (uses) of $16,140,781, thereby increasing the General Fund balance at the end of June 30, 2024, to $142,929,305.
General Fund revenues increased by $6,456,663 to $106,589,682, including transfers and proceeds from sale of assets, compared to the prior year. The increase is primarily attributable to an increase of $7,619,682 in the Use of Money and Property, an increase in Taxes of $510,151, and an increase of $497,887 in Transfers In. Conversely, other revenue types saw reductions over the prior year: License and Permits decreased by $285,875, Intergovernmental Revenues decreased by $779,096, and Charges for Services decreased by $1,010,667. Lastly, the remaining revenue categories declined by approximately $95,419.
The increase in the Use of Money & Property is due to two factors. The first is an increase in investment income associated with the City’s investment portfolio and short-term investment through the City’s sweep account. The investment income increase is approximately $2,220,165. The other component is associated with the accounting required by GASB 31 to recognize unrealized gain or loss of securities that weren’t sold or matured at year-end. The change in recognition of unrealized gain or loss of securities accounts over the prior year is $5,394,189. During the fiscal year, the value of fixed-income securities, like the ones in the city’s portfolio, have an inverse relationship to the movement of interest rates. The value of a bond will increase as interest rates decrease. Conversely, the value of bonds decreases when interest rates rise.
General Fund expenditures increased by $12,224,133 to $90,448,901, which included transfers out and other financing uses. The increase in expenditures is mainly attributable to Public Safety operations and services by $6,686,184. Personnel-related expenditures accounted for $6,315,390 or 94.4% of the increase and the balance of $370,794 was for operating costs.
The General Government Category increased by $1,730,906. This increase is associated with personnel- related expenditures of $1,112,073 and operating costs increases of $618,834 for special legal and contract services, and building and vehicle maintenance. Transfers out increased by $1,544,505. The category provides funding to special revenue funds that have operating shortfalls. Public Works and Community Development increased by $424,187 and $236,719, respectively. All other expenditure categories increased by $1,601,631.
302
City of Murrieta
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-15-
The total fund balance includes funds classified as non-spendable in the amount of $3,742,577, primarily made up of long-term note receivables, long-term advances to other funds, inventory, and prepaid costs, which are not in spendable form. A non-spendable classification means the funds are set aside since those resources cannot be accounted as City funds until collected or, in the case of inventory and prepaid, until it is used or goods/services received.
The restricted fund balance of $137,371 represents cash in an escrow account for the streetlight retrofit project, and partial annual debt service obligation by the General Fund. Additional information regarding the capital lease can be found on Note 7 - Capital Lease Liability on page 54 of this report.
Committed funds totaled $86,200,190. These funds are slated for capital projects, continuing appropriations, economic contingency reserves, operating reserves, pension rate stabilization reserves, fleet replacement reserves, and facility replacement reserves. It includes an operating reserve of $20,416,330 from the General Fund and $9,147,847 from the Measure T fund, of which $4,215,039 is set aside to fund the Fire District, Community Services District, and Library operating reserves at an average level of 31.8%. The combined operating reserve of $29,564,177 is approximately 30% of the annual operating budget. The operating reserve is established by a City Council policy to provide sufficient cash flow and resources to pay the annual debt and obligated long-term debt requirements and to maintain City operations should a catastrophic event such as a natural disaster or an economic or legislative change occur that might have an adverse impact to the City’s financial position. The current operating reserve policy requires a 25% reserve. The committed fund balance includes a $8,382,884 economic contingency reserve, $9,000,000 pension and other post-employment benefit trust reserves, $8,355,258 fleet replacement, $11,907,850 facilities and equipment reserve, and $6,025,000 in continuing operations.
The assigned fund balance totaling $52,482 is set aside for City programs. The second most significant portion of the fund balance is unassigned fund balance in the amount of $52,796,685. The 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. More detailed information about the City’s fund balance is presented in Note 9 to the financial statements.
General Fund Budgetary Highlights
As customary, Finance staff delivers quarterly budget update reports to the City Council. As necessary, staff recommends budget adjustments to revenue and expenses to align the budget with actual financial activities, unanticipated revenue or expenses, or revised forecasts.
The revised revenue budget for FY 2023/24 totaled $96,860,003, while actual revenues totaled $106,589,682, outperforming revenue projections by $9,729,679. The most significant budgetary variance is in the use of money and property (interest earning), property taxes, intergovernmental revenue, and charges for services categories. While other revenue categories, licenses and permits, and transfers in, licenses and permits, and transfers in experienced a moderate increase when compared to the amended budget. Fines & forfeitures was slightly under budget when compared to the amended budget.
The General Fund Sales & Use tax and Transaction tax were $679,077 (or two percent) under budget. This coincides with the general economy being down from an extended period of high interest rates, which has affected our new and used auto sales and general goods sales. However, property taxes outperformed the budget by $2,321,955, primarily due to conservative budgeting and new residential and commercial development. Additionally, franchise taxes and property transfer taxes came in higher than the amended budget by $504,401 and $136,263, respectively.
The increase in the use of money and property is primarily due to the extended periods of high interest rates, which have had a positive outcome with higher interest earnings. The General Fund’s portion of interest earnings from the investment portfolio was $4,770,024. As required by GASB Statement 31 - 303
City of Murrieta
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-16-
Accounting and Financial Reporting for Investments, a non-cash accounting adjustment to record gains or losses in investments either not yet sold or matured. The positive change in the valuation of investment at year-end was $3,739,260. The value of fixed-income securities may fluctuate with changes in interest rates.
As interest rates go up, the market value of the securities may go down, and the reverse is true; when interest rates go down, the market value of the securities may go up. The difference between book value and fair market value is considered an unrealized gain or loss
Licenses and Permits and Charges for Services outperformed its budget by $54,616 and $200,721, respectively, due to multifamily housing and commercial developments for permits, plan checks, and inspection services. The Intergovernmental revenue category was $484,488 higher than the budget primarily due to the collection of deferred payments from the previous fiscal year associated with the intergovernmental agreement for dispatch services.
General Fund
Budget Actuals Variance
Revenues
Taxes 81,979,140 $ 84,167,091 $ 2,187,951 $ Licenses and permits 3,056,075 3,110,691 54,616 Intergovernmental 3,977,620 4,462,108 484,488 Charges for services 4,420,120 4,620,841 200,721 Use of money and property 2,102,880 8,938,220 6,835,340 Fines & forfeiture 479,750 345,917 (133,833) Miscellaneous revenues 232,466 398,291 165,825 Transfers in 504,108 506,692 2,584 Sales of capital assets 107,844 39,831 (68,013) Total Revenues 96,860,003 106,589,682 9,729,679 Expenses
General government 15,351,728 13,617,617 (1,734,111) Public safety 52,399,168 49,377,354 (3,021,814) Community development 9,855,404 7,767,694 (2,087,710) Parks and recreation 2,210,277 1,515,713 (694,564) Public works 7,554,183 6,487,087 (1,067,096) Capital outlay 4,028,566 3,851,966 (176,600) Debt service 46,736 915,701 868,965 Transfers out 11,120,203 6,915,769 (4,204,434) Total Expenses 102,566,265 90,448,901 (12,117,364) Net Revenues over Expenses (5,706,262) $ 16,140,781 $ 21,847,043 $
BUDGET TO A CTUA L
GENERA L FUND
The total revised General Fund operating expenditure budget in FY 2023/24 totaled $102,566,265, while actual expenses at year-end totaled $90,448,901. The actual operating expenses were $12,117,364 lower than the budgeted figures. This negative variance (or budgetary savings) comprised of Personnel, Operations & Maintenance, Allocations (or Internal Service Charges), and Transfer Out across the various expenditure functions.
Operations & Maintenance had budgetary savings of approximately $1.8 million savings across multiple departments in contract services for consultants, contracts, and special legal services. The General Fund has budgetary savings across all departments totaling $4.3 million. This can be attributed to the time to recruit for vacant positions. The Transfer Out savings of $4.2 million in this category are primarily due to reduced expenditures and increased revenue in the Fire District, Community Services District (CSD), and Library, which resulted in a lower Transfer In from the General Fund’s District sales tax fund to make the aforementioned district’s fund whole.
304
City of Murrieta
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-17-
Capital assets
At the end of FY 2023/24, the City had capital assets (net of accumulated depreciation) of $442,471,511, including land, construction in progress (CIP), buildings and improvements, improvements to land, parkland improvements, equipment (including vehicles), infrastructure, leased assets, and right-to-use subscriptions.
Current year additions to all asset categories totaled $13,963,593, while deletions totaled $4,238,424. The accumulated depreciation increased by $14,700,485 net of deletions. Capital assets with the most significant increase were in Construction in Progress with $1,900,926. The asset class with the next most significant increase was Right to Use Subscriptions with $1,423,381. The capital asset category with the most significant decreases net of depreciation was infrastructure, with $5,169,246, followed by parkland improvements, with $1,375,484, and then equipment, with $1,145,883. The remaining categories had an overall decrease of $609,010. The decreases were primarily due to current-year depreciation.
Note 6, Capital Assets, on page 53 of this report provides additional information on the city's capital assets.
CAPITAL ASSETS, NET OF DEPRECIATION
2024 2023
Land 178,561,254 $ 178,561,254 $
Construction in Progress 12,738,266 10,837,340
Buildings & Improvements 30,567,847 31,411,469
Improvements to Land 1,605,958 1,722,707
Parkland Improvements 15,265,876 16,641,360
Equipment 13,476,470 14,622,353
Infrastructure 186,482,522 191,651,768
Lease Assets 1,884,022 1,532,661
Right-to-use Subscriptions 1,889,296 465,915
Total Capital Assets 442,471,511 $ 447,446,827 $
*More detailed information about the City’s capital assets is presented in Note 1 and Note 6 to the financial statements.
Governm ental A ctivities
Long-Term Debt
At the end of the current fiscal year, the City of Murrieta had bonded debt and leases outstanding, along with liability for claims and judgments, an obligation for employee post-employment benefits (OPEB), compensated absences payable, and Net Pension liabilities totaling $203,113,902. The total outstanding debt increased by approximately 5.10% or $9,857,773 during FY 2023/24. The most significant increase relates to the increase in Net Pension Liability.
The pension (CalPERS) liability increased by $7,717,344 due to changes in assumptions, differences between expected and actual experiences, differences between projected and actual investment earnings, differences between employer’s contributions and proportionate share of contributions, and changes in employer’s proportion of costs.
305
City of Murrieta
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-18-
The increase in Other Post Employment Benefits (OPEB) liability of approximately $6,559,867 is attributed to a reduction in the discount rate from 5.70% to 5.06%, changes in assumptions, and differences between expected and actual experiences. Claims and Judgments related to the City’s general liability and Workers’ Compensation decreased by $111,058 due to the actuarial valuation of future liability. Compensated absences had an increase of $570,713 due to an increase in the number of employees and increases in the salary and compensation schedules. The remaining outstanding debt items had an overall decrease of $4,879,093 primarily due to payment of annual debt service payments.
OUTSTANDING DEBT
City Related Debt 2024 2023
Lease Revenue Bond Series 2020A 2,214,504 $ 2,903,446 $ Leases, Subscriptions & Notes Payable 8,351,960 7,314,398 Net Pension Liability 70,410,154 62,692,810
Claims and Judgments 13,195,313 13,306,371
OPEB Liability 34,621,448 28,061,581
Compensated Absences 7,363,387 6,792,674
Total City Related Debt 136,156,766 121,071,280
CFD Related Debt
Local Agency Revenue Bond, Series 2022 27,407,136 29,814,849 Local Agency Revenue Bond, Series 2016A 33,510,000 35,900,000 Local Agency Revenue Bond, Series 2016B 6,040,000 6,470,000 Total CFD Related Debt 66,957,136 72,184,849
Total Outstanding Debt 203,113,902$ 193,256,129 $
Note 7 to the financial statements.
Governmental A ctivities
*More detailed information about the City’s long-term debt is presented in
Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact Finance Director Javier Carcamo, Finance Department at:
Finance Department
City of Murrieta
1 Town Square
Murrieta, CA 92562
(951) 461-6090
[email protected]
306
FINANCIAL STATEMENTS
307
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308
City of Murrieta
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -19-
ASSETS
Governmental
Activities
Cash and Investments 272,604,390$
Receivables, net:
Accounts 1,610,357
Taxes 17,354,360
Loans 12,109,134
Accrued interest 2,469,990
Leases 3,171,516
Prepaid Costs 1,218,694
Inventories 83,969
Deposits Held with Others 2,042,873
Due from Other Governments 5,427,637
Land Held for Resale 3,515,665
Restricted Assets:
Cash and Investments with Fiscal Agents 5,532,938
Capital Assets, Not Depreciable 191,299,520
Capital Assets, Net of Accumulated Depreciation 251,171,991 Total Assets 769,613,034
DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Refunding 316,440
Deferred Pension-Related Items 36,527,160
Deferred OPEB-Related Items 15,775,134
Total Deferred Outflows of Resources 52,618,734
LIABILITIES
Accounts Payable 5,172,118
Accrued Liabilities 5,650,572
Accrued Interest 894,531
Due to Other Governments 5,517
Deposits Payable 11,847,756
Unearned Revenues 9,946,719
Long-term Liabilities, Due Within One Year 15,564,170
Due in More Than One Year:
Long-term Liabilities 82,518,130
Net Pension Liability 70,410,154
Net OPEB Liability 34,621,448
Total Liabilities 236,631,115
DEFERRED INFLOWS OF RESOURCES
Deferred Pension-Related Items 2,530,132
Deferred OPEB-Related Items 5,031,962
Deferred Amounts Related to Leases 2,937,173
Total Deferred Inflows of Resources 10,499,267
NET POSITION
Net Investment in Capital Assets 432,409,678
Restricted for:
Community Development:
Nonexpendable 500,000
Expendable 22,393,683
Public Safety 5,272,184
Public Works 96,393,287
Capital Projects 4,111,142
Public Education and Government 1,278,300
Debt Service 4,014,720
Unrestricted 8,728,392
Total Net Position 575,101,386$
309
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310
City of Murrieta
Statement of Activities
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -20-
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Net
Governmental
Activities
Governmental Activities:
General Government 20,331,417 $ 737,081 $ 2,407,204 $ - $ (17,187,132)$ Public Safety 84,583,049 2,600,341 4,010,312 - (77,972,396) Community Development 8,168,208 10,981,702 435,336 - 3,248,830 Parks and Recreation 20,377,781 10,463,663 2,464,901 28,734 (7,420,483) Public Works 20,239,187 3,331,014 - 15,888,948 (1,019,225) Interest on Long-Term Debt 3,234,953 - - - (3,234,953) Total Governmental Activities 156,934,595$ 28,113,801 $ 9,317,753 $ 15,917,682 $ (103,585,359) General Revenues:
25,165,760
16,391,638
686,263
1,989,170
53,880,062
5,156,401
1,185,824
136,741
14,329,611
Sale of Assets 46,631
1,037,269
120,005,370
16,420,011
Net Position - Beginning of Year,
as Previously Reported 559,084,667
Adjustment - Correction of Error (403,292)
558,681,375
575,101,386$
Transient Occupancy Taxes
Sales and Use Taxes
Franchise Taxes
Business Licenses Taxes
Program Revenues
Taxes:
Property Taxes, Levied for General Purposes
Property Taxes, Levied for Fire Safety
Property Transfer Taxes
Net Position - End of Year
Motor Vehicle License
Investment Income
Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning of Year, As Restated
311
City of Murrieta
Balance Sheet – Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -21-
Capital Projects
General Fire District Federal Grants
Development
Impact
ASSETS
Pooled Cash and Investments 132,259,430 $ 4,935,921 $ 8,641,027 $ 57,523,800 $ Receivables:
Accounts 1,336,469 64,388 6,455 100,000 Taxes 16,375,673 539,455 - - Loans 3,177,228 - - - Accrued Interest 1,786,082 - - - Leases - 2,566,991 - - Prepaid Costs and Other Assets 331,974 31,365 - - Inventories 44,899 5,330 - - Due from Other Governments 1,697,594 88,269 545,581 - Due from Other Funds 2,545,950 - - - Land Held for Resale - - - - Advance to Other Funds 197,149 - - - Restricted Assets:
Cash and Investments with Fiscal Agents 61,684 - - - Total Assets 159,814,132 $ 8,231,719 $ 9,193,063 $ 57,623,800 $
LIABILITIES
Accounts Payable 2,030,264 $ 144,738 $ 11,920 $ 159,848 $ Accrued Liabilities 3,689,666 1,048,358 - 2,700 Deposits Payable 9,460,521 2,300 - - Unearned Revenue 200,000 - 8,580,702 - Due to Other Governments 701 - - 4,816 Due to Other Funds - - 559,258 - Advances from Other Funds - - - 197,149 Total Liabilities 15,381,152 1,195,396 9,151,880 364,513
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 1,503,675 22,759 247,544 100,000 Deferred Inflows Related to Leases - 2,373,215 - - Total Deferred Inflows of Resources 1,503,675 2,395,974 247,544 100,000 FUND BALA NCES (DEFICITS):
Nonspendable 3,742,577 36,695 - - Restricted 137,371 4,603,654 - 57,159,287 Committed 86,200,190 - - - Assigned 52,482 - - - Unassigned 52,796,685 - (206,361) - Total Fund Balances (Deficits) 142,929,305 4,640,349 (206,361) 57,159,287 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) 159,814,132$ 8,231,719 $ 9,193,063 $ 57,623,800 $ Special Revenue
312
City of Murrieta
Balance Sheet – Governmental Funds (Continued)
June 30, 2024
-22-
Total Nonmajor
Governmental
Funds
Total
Governmental
Funds
60,888,208$ 264,248,386 $
93,319 1,600,631
439,232 17,354,360
8,931,906 12,109,134
683,908 2,469,990
604,525 3,171,516
9,192 372,531
22,143 72,372
3,093,193 5,424,637
- 2,545,950
3,515,665 3,515,665
- 197,149
5,471,254 5,532,938
83,752,545$ 318,615,259 $
2,713,645$ 5,060,415 $
788,305 5,529,029
2,384,935 11,847,756
1,164,869 9,945,571
- 5,517
1,986,692 2,545,950
- 197,149
9,038,446 35,131,387
2,573,039 4,447,017
563,958 2,937,173
3,136,997 7,384,190
531,335 4,310,607
71,563,004 133,463,316
- 86,200,190
- 52,482
(517,237) 52,073,087
71,577,102 276,099,682
83,752,545$ 318,615,259 $
313
City of Murrieta
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -23-
Fund Balances - Total Governmental Funds 276,099,682$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets, net of depreciation (excluding those in the internal service fund) have not been included as financial resources in governmental fund activity. 441,813,213 Long-term debt and compensated absences that have not been included in the governmental fund activity (excluding those in the internal service fund):
Lease Revenue Bonds (2,005,000) $
Local Agency Revenue Bonds (64,780,000)
Premium (2,386,640)
Notes, Leases and Subscription Liabilities (8,105,260)
Loss on Refunding 316,440
Compensated Absences (7,241,877) (84,202,337) Accrued interest payable for the current portion of interest due on bonds are not reported in the governmental funds. (894,531)
Pension-related debt is not due and payable in current period and accordingly is not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affect only the government-wide statements for governmental activities.
Deferred Outflows of Resources 36,527,160
Deferred Inflows of Resources (2,530,132)
Pension Liability (70,410,154) (36,413,126)
OPEB-related debt is not due and payable in current period and accordingly is not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affect only the government-wide statements for governmental activities.
Deferred Outflows of Resources 15,775,134
Deferred Inflows of Resources (5,031,962)
Net OPEB Liability (34,621,448) (23,878,276)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 4,447,017 Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position. (1,870,256)
Net Position of Governmental Activities 575,101,386$
314
City of Murrieta
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -24-
Capital Projects
General Fire District Federal Grants
Development
Impact
REVENUES
Taxes 84,167,091 $ 16,391,638 $ - $ - $ Assessments - 1,548,599 - - Licenses and Permits 3,110,691 14,421 - - Intergovernmental 4,462,108 1,004,761 3,130,440 - Charges for Services 4,620,841 678,176 - - Use of Money and Property 8,938,220 289,328 358,489 2,085,566 Fines and Forfeitures 345,917 166,260 - - Developer Participation - - - 3,613,297 Miscellaneous 398,291 139,062 - - Total Revenues 106,043,159 20,232,245 3,488,929 5,698,863
EXPENDITURES
Current:
General Government 13,617,617 - 2,148,261 - Public Safety 49,377,354 23,201,737 469,930 - Community Development 7,767,694 - - - Parks and Recreation 1,515,713 - 182,119 - Public Works 6,487,087 - - 21,591 Capital Outlay 3,851,966 - 155,243 1,351,913 Debt Service:
Principal Retirement 831,373 73,887 - - Interest and Fiscal Charges 84,328 - - - Total Expenditures 83,533,132 23,275,624 2,955,553 1,373,504
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 22,510,027 (3,043,379) 533,376 4,325,359
OTHER FINANCING SOURCES (USES)
Transfers In 506,692 3,954,583 - - Transfers Out (6,915,769) - (506,665) (170,678) Proceeds from Sale of Capital Assets 39,831 6,800 - - Total Other Financing Sources (Uses) (6,369,246) 3,961,383 (506,665) (170,678) NET CHANGE IN FUND BALANCES 16,140,781 918,004 26,711 4,154,681 Fund Balances (Deficit), beginning of year 127,167,181 3,722,345 (233,072) 53,004,606 Adjustment - change from major to nonmajor fund - - - - Adjustment - correction of error (378,657) - - - Fund Balances (Deficit), beginning of year,
as restated (Note 19) 126,788,524 3,722,345 (233,072) 53,004,606 Fund Balances (Deficit), end of year 142,929,305 $ 4,640,349 $ (206,361) $ 57,159,287 $ Special Revenue Funds
315
City of Murrieta
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds (Continued)
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -25-
Debt Service Fund
2016A LARB
(formerly major)
Total Nonmajor
Governmental
Funds
Total
Governmental
Funds
2,847,305$ 103,406,034$
18,259,339 19,807,938
- 3,125,112
13,456,743 22,054,052
709,693 6,008,710
2,544,194 14,215,797
14,231 526,408
80,912 3,694,209
230,898 768,251
38,143,315 173,606,511
1,138,738 16,904,616
806,884 73,855,905
31,944 7,799,638
15,634,659 17,332,491
3,523,486 10,032,164
5,459,067 10,818,189
6,202,288 7,107,548
3,007,550 3,091,878
35,804,616 146,942,429
2,338,699 26,664,082
4,283,110 8,744,385
(1,151,273) (8,744,385)
- 46,631
3,131,837 46,631
5,470,536 26,710,713
1,883,583$ 64,247,618 249,792,261
(1,883,583) 1,883,583 -
- (24,635) (403,292) - 66,106,566 249,388,969 -$ 71,577,102$ 276,099,682 $
316
City of Murrieta
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -26-
Net Change in Fund Balances - Total Governmental Funds 26,710,713$ Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital outlays in the current period.
Capital Outlays 14,239,805 $
Depreciation and amortization (18,354,486) (4,114,681) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. These amounts are the net effect of these differences in the treatments of long-term debt and related items.
Principal Payments 4,401,401
Amortization of Premium 291,655
Amortization on Loss on Refunding (31,644) 4,661,412 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (389,965)
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (582,364)
Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (7,732,390)
OPEB obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (2,088,114)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. (673,324) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The net revenues (expenses) of the internal service fund is reported with governmental activities. 628,724
Change in Net Position of Governmental Activities 16,420,011$
317
City of Murrieta
Statement of Fund Net Position – Proprietary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -27-
Internal Service
Funds
ASSET S
Current Assets:
Cash and Investments 8,356,004 $
Accounts Receivable 9,726
Prepaid Costs 846,163
Inventory 11,597
Due From Other Governments 3,000
Deposits Held with Others 2,042,873
Total Current Assets 11,269,363
Noncurrent:
Capital Assets, Net of Accumulated Depreciation 658,298 Total Assets 11,927,661
LIABILITIES
Current Liabilities:
Accounts Payable 111,703
Accrued Liabilities 121,543
Unearned Revenue 1,148
Compensated Absences 92,052
Claims and Judgments 5,509,984
Note Payable 203,561
Total Current Liabilities 6,039,991
Noncurrent:
Compensated Absences 29,458
Claims and Judgments 7,685,329
Note Payable 43,139
Total Noncurrent Liabilities 7,757,926
Total Liabilities 13,797,917
NET POSITION (DEFICIT)
Net Investment in Capital Assets 411,598
Restricted for Public, Education, Government 432,860
Unrestricted (2,714,714)
Total Net Position (Deficit) (1,870,256) $
318
City of Murrieta
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -28-
Internal Service
Funds
OPERATING REVENUES
Interdepartmental Charges 12,936,042 $
Franchise Taxes 36,903
Total Operating Revenues 12,972,945
OPERATING EXPENSES
Administration and General 8,237,503
Claims Expense 3,345,705
Depreciation Expense 565,491
Total Operating Expenses 12,148,699
OPERATING INCOME 824,246
NONOPERATING REVENUES (EXPENSES)
Interest Revenue 374,788
Interest Expense (13,121)
Gain (loss) on sale of equipment (557,189)
Total Nonoperating Revenues (Expenses) (195,522)
CHANGES IN NET POSITION 628,724
Net Position (Deficit), beginning of year (2,498,980)
Net Position (Deficit), end of year (1,870,256) $
319
City of Murrieta
Statement of Cash Flows – Proprietary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -29-
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Interfund Service Provided 12,971,798 $ Cash Paid to Suppliers for Goods and Services (6,521,923) Cash Paid to Employees for Services (1,684,970)
Claims Paid (663,324)
Net Cash Provided by Operating Activities 4,101,581
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on subscription-based liability (146,585) Principal payments on note (39,452)
Interest payments on note (13,121)
Purchase of equipment (262,045)
Net Cash Used by Capital and Related Financing Activities (461,203)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 374,788
Net Cash Provided by Investing Activities 374,788
NET CHA NGES IN CA SH A ND CA SH EQUIVA LENTS 4,015,166 Cash and Cash Equivalents, beginning of year 4,340,838
Cash and Cash Equivalents, end of year 8,356,004 $
RECONCILIA TION OF OPERA TING (INCOME)TO NET CA SH
PROVIDED BY OPERA TING A CTIVITIES
Operating (Income) 824,246 $
Adjustments to Reconcile Operating (Income) to
Net Cash Provided by Operating Activities:
Depreciation Expense 565,491
(Increase) Decrease in Accounts Receivable 720
(Increase) Decrease in Prepaid Costs 57,033
(Increase) Decrease in Inventory 5,380
(Increase) Decrease in Due From Other Governments (3,000) (Increase) Decrease in Deposits Held with Others 2,793,439 Increase (Decrease) in Accounts Payable (48,140)
Increase (Decrease) in Accrued Liabilities 27,988
Increase (Decrease) in Unearned Revenue 1,133
Increase (Decrease) in Claims and Judgments (111,058)
Increase (Decrease) in Compensated Absences (11,651)
Total Adjustments 3,277,335
Net Cash Provided by Operating Activities 4,101,581 $
320
City of Murrieta
Statement of Fiduciary Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -30-
Custodial Fund
Successor
Agency Private-
Purpose Trust
Fund
ASSET S
Pooled Cash and Investments 38,180 $ 2,649,652$ Receivables, net:
Accounts 25,802 -
Taxes 77,300 -
Prepaid Costs - 406
Restricted Assets:
Cash and Investments with Fiscal Agents 10,889,304 2,273,535 Total Assets 11,030,586 4,923,593
LIABILITIES
Accounts Payable 2,015 145,875
Accrued Liabilities - 20,870
Deposits Payable 12,965 -
Interest Payable - 465,863
Long-Term Liabilities:
Due in One Year - 1,715,000
Due in More than One Year - 28,911,447 Total Liabilities 14,980 31,259,055
NET POSITION (DEFICIT)
Restricted for Other Organizations 11,015,606 -
Unrestricted for Successor Agency - (26,335,462) Total Net Position (Deficit) 11,015,606 $ (26,335,462) $
321
City of Murrieta
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -31-
Custodial Fund
Successor
Agency Private-
Purpose Trust
Fund
ADDITIONS
Taxes 1,749,095 $ 3,002,498 $
Interest Income 440,535 99,651
Total Additions 2,189,630 3,102,149
DEDUCTIONS
Administrative Costs 293,869 243,286
Residual Commitments of the Agency 768,421 757,540 Interest on Bonds 872,467 1,073,124
Total Deductions 1,934,757 2,073,950
CHANGES IN NET POSITION 254,873 1,028,199
Net Position (Deficit), beginning of year 10,760,733 (28,575,565) Adjustment - correction of error - 1,211,904 Net Position (Deficit), beginning of year, as restated 10,760,733 (27,363,661) Net Position (Deficit), end of year 11,015,606 $ (26,335,462) $
322
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-32-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Reporting Entity
The City of Murrieta (the City) is a reporting entity, which consists of the primary government and component units:
Reporting Entity:
Primary Government
City of Murrieta
Component Units:
Murrieta Financing Authority
Murrieta Fire Protection District
Murrieta Community Services District
Murrieta Public Library Board
Murrieta Housing Authority
As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Murrieta (the primary government) and its component units. Component units are entities for which the government is considered to be financially accountable.
The City was incorporated on July 1, 1991, under the laws of the state of California and enjoys all the rights and privileges applicable to a General Law City. It is governed by an elected five- member board. The City operates under a council-manager form of government and currently provides a wide variety of services to its citizens, including police, fire, public services, community development, general and administrative, and other services. As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component units. Component units are legally separate entities that meet any one of the following three tests:
1. The City appoints the voting majority of the board of the potential component unit and is able to impose its will on the component unit and/or is in a relationship of financial benefit or burden with the potential component unit.
2. The potential component unit is fiscally dependent upon the City.
3. The financial statements would be misleading if data from the potential component units were not included.
Component units are legally separate entities. However, the City Council serves in separate sessions as the governing body of these related agencies and they are, in substance, part of the City’s operations, so data from these units are combined with data of the City. Based on the above criteria, the accompanying financial statements include the financial activities of the entities listed below.
323
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-33-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
A) Reporting Entity, (Continued)
Blended Component Units
The Murrieta Financing Authority (the Authority) was formed on March 1, 1993, by a joint powers agreement between the City and the Redevelopment Agency of the City of Murrieta (the Agency). The City appoints the voting majority of the board and the City has operational responsibility for the Authority. It was created for the purpose of assisting in the financing and refinancing of certain redevelopment activities of the Agency and certain public programs and projects of the City and for the purpose of aiding in the financing and refinancing of public capital improvements. The operations of the Authority are reported as a debt service fund.
The Murrieta Fire Protection District (MFPD) was an independent (self-governed) special district formed pursuant to the State of California Health and Safety Code commencing with Section 13800, for the purpose of providing fire protection services. Effective July 1, 1993, the MFPD was reorganized as a subsidiary district of the City of Murrieta. The MFPD continues to operate as a special district under the same Health and Safety Code provisions. As a subsidiary district, the City Council of the City of Murrieta now serves as MFPD’s governing Board of Directors and the City has operational responsibility for the District. The operations of the MFPD are reported as a special revenue fund.
On June 25, 1992, the Board of Supervisors of the County of Riverside adopted Resolution No. 50 90 to form the Murrieta Community Services District (MCSD) as a subsidiary of the City of Murrieta and detach the area within the City boundaries from the county service area (CSA143). The formation of MCSD and the detachment from CSA143 were effective on July 1, 1993. As a subsidiary district, the City Council of the City of Murrieta now serves as the District’s governing Board of Directors and the City has operational responsibility for the District. The operations of the Community Services District are reported as a special revenue fund.
The Murrieta Public Library’s (the Library) board was established on February 17, 1998, by City Ordinance 185. The City provides for the Murrieta public library system and adopted the provisions of an act of the legislature of the state of California entitled “Municipal Libraries” as set forth in Education Code Section 18900 et seq. regarding the regulation and maintenance of a public library system. The City Council of the City of Murrieta now serves as the Library’s governing Board of Directors and the City has operational responsibility for the Library. The operations of the Murrieta Public Library are reported as a special revenue fund.
On April 5, 2011, the City established the Murrieta Housing Authority (the Housing Authority).
The majority of the Housing Authority’s activities began when it became the successor housing entity to the former Murrieta Redevelopment Agency. The City Council of the City of Murrieta serves as the governing Board of Directors and the City has operational responsibility for the Housing Authority. The operations of the Housing Authority are reported as a special revenue fund.
Separate financial statements are not prepared for the component units. 324
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-34-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
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. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities that rely, to a significant extent, on fees and charges for support. Certain eliminations have been made as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the statement of net position have been eliminated. In the statement of activities, all interfund services have been eliminated.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are 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 included among program revenues are reported instead, as general revenues.
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Separate financial statements for the City’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and other governmental and proprietary funds in the aggregate for nonmajor funds. Fiduciary fund statements, even though excluded from the government-wide financial statements, include financial information for private-purpose trust funds and custodial funds.
C) Basis of Accounting and Measurement Focus
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.
325
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-35-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
C) Basis of Accounting and Measurement Focus, (Continued)
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary funds financial statements. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statements of net position. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under 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.
The City’s fiduciary fund financial statements report custodial fund and private purpose trust fund. Custodial funds are used to account for situations where the government’s role is purely custodial.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.
Under 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. 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, claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.
326
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-36-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
C) Basis of Accounting and Measurement Focus, (Continued)
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
The Fire District Special Revenue Fund accounts for proceeds of property taxes and other sources that are restricted by law or administrative action to expenditures for the operation of the City’s fire stations.
The Federal Grants Special Revenue Fund accounts for revenues and expenditure made under federal grant programs.
The Development Impact Capital Projects Fund accounts for developer contributions and other revenue sources that are restricted by law or administrative action to expenditures for development purposes.
The City also reports the following fund types:
Governmental Fund Types
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are restricted to expenditures for special purposes.
Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major facilities other than those financed by Proprietary, Special Assessment and/or Trust Funds.
Debt Service Funds are used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs other than those being financed by proprietary funds.
Proprietary Fund Types
Internal Service Funds – These funds account for goods and services provided by one City department to other City departments or agencies. These activities include self- insurance and information technology.
327
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-37-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
C) Basis of Accounting and Measurement Focus, (Continued)
Fiduciary Fund Types
The Private-Purpose Trust Fund is used to account for the balances and transactions of the Successor Agency to the Murrieta Redevelopment Agency (Successor Agency). The Successor Agency private purpose trust fund accounts for the assets and liabilities of the former redevelopment agency and its allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former redevelopment agency are paid in full and assets have been liquidated.
Custodial funds are used to report fiduciary activities that are not required to be reported in private-purpose trust funds. The City uses the custodial fund to account for various assessment districts for which the City acts as an agent for debt service activity.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with proprietary fund’s principal ongoing operations.
The principal operating revenues of the City’s internal service funds are charges to funds for services. Operating expenses for the internal service funds include the costs of sales and services, maintenance of capital assets, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
The City’s internal service funds are presented in the proprietary fund financial statements.
Because the principal users of the internal services are the City’s governmental activities, the financial statements of the internal service funds are consolidated in the governmental activities column when presented in the governmentwide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity (general government, public safety, community development, etc.).
D) Implementation of New Accounting Pronouncements
For the year ended June 30, 2024 the financial statements include the adoption of GASB Statement No. 100, Accounting Changes and Error Corrections . This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability.
This Statement also addresses corrections of errors in previously issued financial statements. 328
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-38-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
E) Cash and Investments
Investments for the City, as well as for its component units, are reported at fair value. 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.
For purposes of the statement of cash flows, cash equivalents represent demand deposits of proprietary funds held in financial institutions or in cash management pools where funds can be added or withdrawn at any time without prior notice or penalty and cash equivalents are highly liquid investments with a maturity of three months or less from the date of purchase.
F) 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 noncurrent portion of the 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 nonspendable fund balance account in the general fund 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 uncollectibles.
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means when due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) 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 preceding 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.
G) Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.
The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
329
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-39-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
H) Restricted Assets
Certain proceeds of debt issues, as well as certain resources set-aside for their repayment, are classified as restricted assets in the financial statements because their use is limited by applicable bond covenants.
I) Capital Assets and Right-to-Use Leased Assets
Capital assets, which include property, plant, equipment, right-to-use leased assets and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the Governmental Activities column of the government-wide and proprietary fund financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets received are recorded at acquisition value as of the date received. Right-to-use lease/subscription assets, which include equipment and vehicles, follow the same capitalization thresholds as capital assets. Right-to-use lease/subscription assets are recorded at the amount of the initial measurement of the lease/subscription liabilities and modified by any lease/subscription payments made to the lessor at or before the commencement of the lease term.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:
Buildin
gs and improvements 20 to 50 years
Equipment 5 to 20 years
Furniture and fixtures 10 to 20 years
Infrastructure 20 to 50 years
J) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance sheet 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 future periods and will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:
x Deferred loss on refunding, net of accumulated amortization. A deferred loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
330
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-40-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
J) Deferred Outflows/Inflows of Resources, (Continued)
x Deferred outflows related to pensions and other postemployment benefits (OPEB) equal to employer contributions made after the measurement date of the net pension liability and OPEB liability. These amounts will be recognized in the next fiscal year.
x Deferred outflows related to pensions and OPEB for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB through the plans.
x Deferred outflows from OPEB resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with OPEB through the plans.
x Deferred outflows related to pensions for the changes in employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
In addition to liabilities, the Statement of Net Position and the Governmental Funds Balance Sheet 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 asset that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
x Deferred inflows from unavailable revenues, which arises only under a modified accrual basis of accounting, is reported only in the governmental funds balance sheet.
The governmental funds report unavailable revenues from three sources, which are taxes, interest, and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
x Deferred inflows from lease receivable is initially measured at the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
x Deferred inflows related to OPEB for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with OPEB through the plans.
331
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-41-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
J) Deferred Outflows/Inflows of Resources, (Continued)
x Deferred inflows from pensions and OPEB resulting from changes in assumptions.
These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions and OPEB through the plans.
x Deferred inflows related to pensions for the changes in proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining services lives of all employees that are provided with pensions through the plans.
x Deferred inflows related to pensions and OPEB resulting from the net differences between projected and actual earnings on plan investments of the pension and OPEB plans’ fiduciary net position. These amounts are amortized over five years.
K) Lease Receivable
The City measures lease receivable at the present value of lease payments expected to be received during the lease term. Interest revenue is recognized ratably over the contract term.
L) Unearned Revenue
Unearned revenues are reported in connection with resources that have been received but not yet earned.
M) Compensated Absences
All vacation and sick leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
Murrieta has six employee bargaining groups, and each group has its own Memorandum of Understanding (MOU). Management is unrepresented and has a compensation plan. All MOUs or plans provide for annual leave (used for both vacation and sick leave) or vacation leave when taken, with a cash-out of unused/accrued leave upon termination.
332
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
M) Compensated Absences, (Continued)
Maximum accrual limits for each MOU or plan are:
Murrieta General Employees Association (MGEA) 544 Hours Murrieta Police Officers Association (MPOA) 544 Hours
Murrieta Police Management Association (MPMA) 544 Hours Murrieta Supervisors Association
Management/Confidential (M/C):
594 Hours
Confidential 644 Hours
At-will Employees 1,000 Hours
The Murrieta Firefighters Association (MFA) and Murrieta Fire Management Association (MFMA) 24 hour battalion chiefs’ vacation leave maximum accruals are limited to the equivalent of two years’ accrual (annual accruals vary with longevity of employee). MFMA 40- hour battalion chiefs’ maximum annual leave accrual is limited to 644 hours.
Sick leave is payable when an employee is unable to work because of illness. Employees with continuous employment of five years or more may receive a payment of 25% of unused sick leave when they resign or retire at the then rate of compensation. Employees with continuous employment over 10 years may receive a payment of 50% of the unused sick leave when they resign or retire at the then rate of compensation. Police management employees with continuous employment over 15 years may receive a payment of 75% of the unused sick leave when they resign or retire.
The liability for compensated absences will be paid in future years from the Fire, Library, Community Services District, Information Technology, and General Funds.
N) Long-Term Obligations
Long-term debt and other long-term obligations are reported as liabilities in the governmental activities and proprietary fund statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
In the governmental fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
333
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-43-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
O) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position.
P) Fund Balances
In the fund financial statements, governmental funds report the following fund balance classification:
Nonspendable Fund Balance – Amounts that cannot be spent either because they are in nonspendable form or are required to be maintained intact.
Restricted Fund Balance – Amounts that are constrained to specific purposes by state or federal laws, or externally imposed conditions by grantors or creditors.
Committed Fund Balance – The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently.
Assigned Fund Balance – Amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. The City’s fund balance policy delegates the authority to assign amounts to be used for specific purposes to the City Manager or designee for the purpose of reporting these amounts in the annual financial statements.
Unassigned Fund Balance – These are either residual positive net resources of fund balance in excess of what can properly be classified in one of the other four categories, or negative balances. The General Fund is the only fund that reports a positive unassigned fund balance.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balance are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the governing board has provided otherwise in its commitment or assignment actions.
334
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-44-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
Q) Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
R) Postemployment Benefits Other Than Pensions
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB plans and additions to/deductions from the OPEB plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, the City’s OPEB plans recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.
S) Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
2) STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Deficit Fund Balances
The following funds had deficit fund balances at June 30, 2024:
Deficits
Federal Grants Special Revenue Fund (206,361) $
Block Grants Special Revenue Fund (146,134)
Other Grants Special Revenue Fund (367,828)
Opioid Settlement Special Revenue Fund (3,275)
Risk Management Internal Service Fund (6,115,598)
These deficits will be eliminated by future revenues or transfers from General Fund. 335
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-45-
2) STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)
Expenditures in Excess of Appropriations
The following departments/funds reported expenditures in excess of appropriations at June 30, 2024:
Final Budget Actual
Variance with
Final Budget
General Fund
City Council 182,174 $ 185,922 $ (3,748) $ City Attorney 221,600 272,698 (51,098) Animal Control 433,830 485,730 (51,900) Emergency Services - 4,828 (4,828) City Clerk 1,480,651 1,551,522 (70,871) Debt Service - Principal - 831,373 (831,373) Debt Service - Interest 46,736 84,328 (37,592) State Gas Tax
Capital Outlay 401,923 459,711 (57,788) Measure A
Capital Outlay 148,164 769,641 (621,477) AQMD
Public Works 284 338 (54) Block Grants
General Government 121,413 787,265 (665,852) Seized Assets Forfeiture
Debt Service - Principal 5,664 162,288 (156,624) SLESF
General Government - 2,113 (2,113) Public Safety 348,432 361,951 (13,519) Housing Authority
General Government - 3,359 (3,359) Community Service District
Capital Outlay 181,506 190,868 (9,362) RMRA
Public Works 1,260 2,125 (865) Capital Outlay 12,446 1,614,680 (1,602,234) Developer Agreement
Capital Outlay - 3,875 (3,875) Area Drainage
Capital Outlay 24,001 52,654 (28,653) South West Road and Bridge
Public Works 88 107 (19) Town Hall Association
Parks and Recreation 5,223 11,868 (6,645) 336
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-46-
3) CASH AND INVESTMENTS
As of June 30, 2024, cash and investments were reported in the accompanying financial statements:
Statement of Net Position
Cash and Investments 272,604,390 $
Restricted:
Cash and Investments with Fiscal Agent 5,532,938
Statement of Net Position Fiduciary Funds
Cash and Investments 2,687,832
Restricted:
Cash and Investments with Fiscal Agent 13,162,839
Total 293,987,999 $
Cash and investments as of June 30, 2024, consisted of the following:
Cash on hand 7,800 $
Deposits with Financial Institutions 3,522,356
Investments 290,457,843
Total 293,987,999 $
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where 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 trustees 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.
337
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-47-
3) CASH AND INVESTMENTS, (Continued)
Authorized Investment Type
Maximum
Maturity
Percentage of
Portfolio
Investment in
One Issuer
United States Treasury Obligations 5 Years None None
United States Government Sponsored
Agency Securities 5 Years 30% 20%
Mortgage-Backed Securities 5 Years 20% 5%
Repurchase Agreements 1 Year 20% None
Commercial Paper 270 Days 25% 5%
Banker's Acceptances 180 Days 30% 5%
Medium Term Notes 5 Years 30% 5%
Supranational 5 Years 30% 10%
State of California Local Agency
Investment Fund (LAIF) None None None
California Local Agency Bonds 5 Years 30% 5%
Money Market Funds 5 Years 20% 10%
Mutual Funds 5 Years 20% 10%
Negotiable Certificates of Deposits 5 Years 30% 5%
Federally Insured Time Deposits
(Non-Negotiable Certificates of Deposits) 5 Years 20% None Collateralized Non- Negotiable
Certificates of Deposits 5 Years 20% None
Certificate of Deposit Placement
Service (CDARS) 5 Years 30% None
Collateralized Bank Deposits 5 Years None None
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.
338
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-48-
3) CASH AND INVESTMENTS, (Continued)
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. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flows and liquidity needed for operations. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2024, the City had the following investments and original maturities:
6 Months
or Less
6 Months to 1
Year 1 to 3 Years 3 to 5 Years Total
U.S. Treasury Securities 13,011,080$ 8,698,107 $ 25,720,461 $ 9,080,844 $ 56,510,492 $ Federal Agency Securities 1,371,603 1,912,717 27,234,528 8,582,836 39,101,684 Money Market Mutual Fund 125,373,960 - - - 125,373,960 LAIF 1,903,635 - - - 1,903,635 Asset-Backed Securities - 888,801 3,599,015 4,505,258 8,993,074 Commercial Paper - 4,540,379 - - 4,540,379 Medium-Term Notes 1,440,578 5,366,495 21,303,806 3,179,129 31,290,008 Negotiable Certificates of Deposit 2,001,814 - - - 2,001,814 Supranational 1,567,273 - - 481,770 2,049,043 Cash with Fiscal Agent:
Money Market Mutual Fund 18,693,754 - - - 18,693,754 Total 165,363,697 $ 21,406,499 $ 77,857,810 $ 25,829,837 $ 290,457,843 $ Remaining Investment Maturities
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.
Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, by Standard & Poor’s, as of fiscal year end for each investment type.
Total
M inimum
Legal Rating AAA AA+ Other
Exempt/
Not Related
U.S. Treasury Securities 56,510,492 $ N/A - $ 56,510,492$ - $ - $ Federal Agency Securities 39,101,684 N/A - - - 39,101,684 Money Market Mutual Fund 125,373,960 AAA - - 259,923 125,114,037 LAIF 1,903,635 N/A - - - 1,903,635 Asset-Backed Securities 8,993,074 7,502,996 - - 1,490,078 Commercial Paper 4,540,379 A - - - 4,540,379 Medium-Term Notes 31,290,008 A - - 31,290,008 - Negotiable Certificates of Deposit 2,001,814 2,001,814 Supranational 2,049,043 AA 2,049,043 - - - Cash with Fiscal Agent:
Money Market Mutual Funds 18,693,754 AAA 18,693,754 - - - Total 290,457,843 $ 28,245,793 $ 56,510,492 $ 31,549,931 $ 174,151,627 $ Ratings as of Fiscal Year End
339
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-49-
3) CASH AND INVESTMENTS, (Continued)
The actual ratings for the “Other” category above are as follows:
A A+/AA+ A- AA- AA Total
Medium-Term Notes 16,158,937 $ 10,136,772 $ 2,073,712 $ 2,498,271 $ 422,316 $ 31,290,008$ AAAm Total
Money Market Mutual Fund 259,923 $ 259,923 $
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. GASB 40 requires a separate disclosure if any single issuer comprises more than 5% of the total investment value. As of June 30, 2024, the City had investments in Federal Home Loan Bank (FHLB) in excess of 5% of total investments.
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 California Government Code requires California banks and savings and loan associations to secure the 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 Federal Deposit Insurance Corporation (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 is considered to be held for, and in the name of, the local governmental agency.
340
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-50-
3) CASH AND INVESTMENTS, (Continued)
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 City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted prices of similar assets in active markets and Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2024:
Quoted Prices
Level 1
Observable Inputs
Level 2
Unobservable
Inputs
Level 3 Total
U.S. Treasury Securities - $ 56,510,492$ - $ 56,510,492$ Federal Agency Securities - 39,101,684 - 39,101,684 Asset-backed Securities 8,993,074 8,993,074 Commercial Paper - 4,540,379 - 4,540,379 Medium-Term Notes - 31,290,008 - 31,290,008 Supranational - 2,049,043 - 2,049,043 Total Leveled Investments - $ 142,484,680$ - $ 142,484,680 LAIF* 1,903,635
Money Market Mutual Funds * 144,067,714
Negotiable Certificates of Deposit* 2,001,814
Total Investment Portfolio 290,457,843$
*Not subject to fair value measurements.
4) LOANS RECEIVABLE
In October 2020, the City sold property that resulted in a note receivable of $4,500,000 due to the City. $2,400,000 of the note is payable in monthly interest and principal payment of $17,957 and bears interest at 4.25% per annum. Each monthly payment is due on the first day of each calendar month. The remaining $2,100,000 of the note is paid by sales tax generated by and directly attributable to business owned or operated by the borrower, or owned or operated by an affiliate of the borrower, which are located on the property. The balance of this note as of June 30, 2024, is $3,177,228. 341
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-51-
4) LOANS RECEIVABLE (Continued)
In February 2004, the former Murrieta Redevelopment Agency (Agency) entered into a Participation Agreement with a California limited partnership for the development, construction and operation of a 64-unit apartment complex of which units shall be available to qualified low and moderate income tenants. Under the terms of the agreement, the Agency loaned $610,046 of its low and moderate income housing funds toward the actual cost for the development, construction, and operation of the project. The loan is for a term of not more than fifty-five years and bears interest at a rate of one percent (3%).
The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Housing Authority assumed responsibility of the Agency notes receivable. The balance of the loan outstanding at June 30, 2024 was $532,663.
Payments on the note are based on a percentage of residual receipts as defined in the agreement. Any unpaid balance is due and payable at the maturity date.
In April 2010, the former Murrieta Redevelopment Agency (Agency) entered into a Disposition and Development Agreement (DDA) with a developer for the development, construction and operation of 40 units which shall be rented exclusively to extremely low income, very low income and low income households. As part of the DDA, the Developer promised to pay the Agency $2,222,222 and is evidenced by a nonrecourse residual receipts promissory note.
The loan is for a term of not more than fifty-five years and bears interest at a rate of one percent (3%). The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Housing Authority assumed responsibility of the Agency notes receivable. The principal balance of the loan outstanding at June 30, 2024 was $2,222,222. Payments on the loan are based on a percentage of the Partnership’s surplus cash as defined in the agreement. Any unpaid balance is due and payable at the maturity date.
In June of 2023, the Murrieta Housing Authority finalized an agreement with National Community Renaissance of California (National CORE) to a loan using ARPA funds of $1,500,000 and a Housing Authority Loan for $6,142,807. These loans provide financing for the construction of affordable housing on the property known as 24960 Adams Avenue in the City of Murrieta. Both loans are for a term of not more than sixty-five years and bears interest at a rate of one percent (3%). The Housing Authority Note is secured by the Housing Successor Deed of Trust. As of June 1, 2023, only $6,142,807 was loaned to National CORE, the ARPA Loan will be executed when National CORE enters Phase Two of the Project.
Payments on the loan are based on a percentage of the Partnership's surplus cash as defined in the agreement under the Housing Successor's Share of Residual Receipts. Any unpaid balance is due and payable at the maturity date. All payments applied to this Note will be applied first to penalties and late fees, then to interest, then to reduce the principal amount owed. As of June 30, 2024, the principal balance of the loan outstanding is $6,142,807.
Housing loans receivable of $34,214 in the Housing Authority Special Revenue Fund consist of various low-interest home loans made to low-income families.
342
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-52-
5) LEASE RECEIVABLE
As of June 30, 2024, the City had 7 active land leases. The leases have receipts that range from $7,940 to $52,803 and interest rates that range from 0.8927% to 2.5833%. As of June 30, 2024, the total combined value of the lease receivable is $3,171,516, the total combined value of the short-term lease receivable is $132,141, and the combined value of the deferred inflow of resources is $2,937,173.
Certain leases provide for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, subject to certain minimum increases.
Total future minimum lease payments to be received under lease agreements are as follows:
Year Ending June 30, Principal Interest Total
2025 132,141 $ 73,334 $ 205,475 $ 2026 117,598 70,985 188,583 2027 101,468 68,740 170,208 2028 109,227 66,427 175,654 2029 117,350 63,937 181,287 2030 - 2034 691,442 275,751 967,193 2035 - 2039 693,684 193,544 887,228 2040 - 2044 527,869 115,239 643,108 2045 - 2049 278,365 71,014 349,379 2050 - 2054 355,432 30,312 385,744 2055 46,940 405 47,345 Totals 3,171,516 $ 1,029,688 $ 4,201,204 $
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343
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-53-
6) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024, is as follows:
Governmental Activities
Beginning
Balance Additions Deletions Transfers
Ending
Balance
Capital Assets, not being- depreciated:
Land 178,561,254 $ - $ - $ - $ 178,561,254$ Construction in progress 10,837,340 10,092,467 - (8,191,541) 12,738,266 Total capital assets, not being depreciated 189,398,594 10,092,467 - (8,191,541) 191,299,520 Capital assets being depreciated/amortized:
Buildings and improvements 58,974,391 - - 635,493 59,609,884 Improvements to land 3,328,592 - - - 3,328,592 Parkland improvements 37,073,025 - - 760,084 37,833,109 Equipment 39,863,087 954,905 (4,227,121) 1,258,397 37,849,268 Infrastructure 407,191,698 - - 5,537,567 412,729,265 Right-to-use leases 2,156,114 832,219 - - 2,988,333 Right-to-use subscriptions 683,956 2,084,002 (11,303) - 2,756,655 Total capital assets being depreciated/amortized 549,270,863 3,871,126 (4,238,424) 8,191,541 557,095,106 Less: accumulated depreciation:
Buildings and improvements 27,562,922 1,479,115 - - 29,042,037 Improvements to land 1,605,885 116,749 - - 1,722,634 Parkland improvements 20,431,665 2,135,568 - - 22,567,233 Equipment 25,240,734 2,774,762 (3,642,698) - 24,372,798 Infrastructure 215,539,930 10,706,813 - - 226,246,743 Less: accumulated amortization:
Right-to-use leases 623,453 480,858 - - 1,104,311 Right-to-use subscriptions 218,041 660,621 (11,303) - 867,359 Total accumulated depreciation and amortization 291,222,630 18,354,486 (3,654,001) - 305,923,115 Total capital assets being depreciated/amortized, net 258,048,233 (14,483,360) (584,423) 8,191,541 251,171,991 Government activities capital assets, net 447,446,827 $ (4,390,893) $ (584,423) $ - $ 442,471,511$
Depreciation and amortization expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government 1,166,794 $
Public Safety 3,039,055
Community Development 22,652
Parks and Recreation 2,552,157
Public Works 11,008,337
Internal Service Fund 565,491
Total Depreciation and Amortization Expense 18,354,486$
344
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-54-
7) LONG-TERM LIABILITIES
The following is a schedule of changes in long-term liabilities of the City for the fiscal year ended June 30, 2024:
Beginning
Balance Additions Deletions
Ending
Balance
Due Within
One Year
Other Debt:
Lease Revenue Refunding
Bonds, Series 2020A 2,620,000 $ - $ (615,000)$ 2,005,000 $ 640,000 $ Premium 283,446 - (73,942) 209,504 73,942 Local Agency Revenue
Bonds, Series 2016B 6,470,000 - (430,000) 6,040,000 435,000 Local Agency Revenue
Bonds, Series 2022 27,420,000 - (2,190,000) 25,230,000 2,290,000 Premium 2,394,849 - (217,713) 2,177,136 217,713 Private Placement:
Local Agency Revenue
Bonds, Series 2016A 35,900,000 - (2,390,000) 33,510,000 2,465,000 Direct Borrowings
Note payable 5,393,589 - (657,452) 4,736,137 468,806 Lease Liability 1,492,303 805,296 (433,547) 1,864,052 449,989 Subscription Liability 428,506 1,945,703 (622,438) 1,751,771 626,748 Other Long-Term Liabilities:
Claims and Judgments 13,306,371 34,349 (145,407) 13,195,313 2,386,988 Compensated Absences 6,792,674 6,495,081 (5,924,368) 7,363,387 5,509,984 Total Long-Term Debt 102,501,738 $ 9,280,429 $ (13,699,867)$ 98,082,300 $ 15,564,170 $
Lease Revenue Bonds, Series 2020
On February 27, 2020, the Murrieta Financing Authority issued $3,790,000 of Lease Refunding Bonds, Series 2020A to advance refund the 2007 Certificates of Participation. The bonds consist serial bonds with annual maturity dates from May 1, 2022 through May 1, 2027, with interest rates ranging from .89% to 1.100%. Interest is payable semiannually beginning May 1, 2020. The Bonds have no reserve requirement. The balance outstanding on the Bonds at June 30, 2024 was $2,005,000.
The following is a schedule by years of future minimum debt service requirements as of June 30, 2024:
Year Ending June 30, Principal Interest Total
2025 640,000 $ 80,200 $ 720,200 $ 2026 670,000 54,600 724,600 2027 695,000 27,800 722,800 Totals 2,005,000 $ 162,600 $ 2,167,600 $
345
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-55-
7) LONG-TERM LIABILITIES, (Continued)
2016 Local Agency Refunding Bonds Series B
On June 2, 2016, the Murrieta Financing Authority issued $8,850,000 Local Agency Refunding Bonds 2016 Series B (the “2016B Bonds”). The 2016B Bonds were issued to (i) acquire $3,195,000 City of Murrieta Community Facilities District No. 2004-1 (“CFD 2004-1”) 2016 Special Tax Refunding Bonds; $1,810,000 Community Facilities District 2004-2 (“CFD 2004- 2”) 2016 Special Tax Refunding Bonds; and $3,845,000 Community Facilities District 2004-3 (“CFD 2004-3”) 2016 Special Tax Refunding Bonds, – (collectively, the “Local Obligations” or the “Districts”), (ii) to purchase a municipal bond insurance policy from Build America Mutual Assurance Company guaranteeing the scheduled payment of principal and interest on the Bonds maturing on and between September 1, 2028 and September 1, 2035, inclusive, and (iii) to purchase a debt service reserve insurance policy relating to the Bonds.
The 2016B Bonds are special obligations of the Authority secured and payable solely from pledged Special Tax Revenues derived by Special Taxes (“Special Taxes”) collected by the Districts from real property within their boundaries and other amounts held under the Fiscal Agent Agreement. The 2016B Bonds are not a debt or liability of the City, the State of California, or any of its political subdivisions and neither the City, the State of California, nor any of its political subdivisions is liable. The Bonds do not constitute indebtedness within the meaning of any constitutional or statutory debt limit or restriction.
Principal ranges from $345,000 to $595,000 maturing annually through September 1, 2035.
The bonds bear interest at rates ranging from 2.0% to 5.0%, due semiannually on March 1 and September 1.
The following is a schedule by years of future minimum debt service requirements as of June 30, 2024:
Year Ending June 30, Principal Interest Total
2025 435,000 $ 191,438 $ 626,438 $ 2026 445,000 182,637 627,637 2027 455,000 166,813 621,813 2028 475,000 143,562 618,562 2029 500,000 125,437 625,437 2030 - 2034 2,745,000 380,006 3,125,006 2035 - 2036 985,000 41,250 1,026,250 Totals 6,040,000 $ 1,231,143 $ 7,271,143 $
346
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-56-
7) LONG-TERM LIABILITIES, (Continued)
2022 Local Agency Refunding Bonds
On May 12, 2022, the Murrieta Financing Authority issued $29,075,000 Local Agency Refunding Bonds 2022 (the “2022 Bonds”). The 2022 Bonds were issued to (i) acquire $6,710,000 City of Murrieta Community Facilities District No. 2000-1 (“CFD 2000-1”) 2022 Special Tax Refunding Bonds; $4,180,000 Community Facilities District 2001-1 Area A (“CFD 2001-1 A”) 2022 Special Tax Refunding Bonds; $3,170,000 Community Facilities District 2001-1 Area B (“CFD 2001-1 B”) 2022 Special Tax Refunding Bonds, $11,945,000 Community Facilities District No. 2003-1 (“CFD 2003-1”) 2022 Special Tax Refunding Bonds and $3,070,000 Community Facilities District No. 2003-2 (“CFD 2003-2”) 2022 Special Tax Refunding Bonds – (collectively, the “Local Obligations” or the “Districts”), (ii) to purchase a municipal bond insurance policy from Build America Mutual Assurance Company guaranteeing the scheduled payment of principal and interest on the Bonds when due, (iii) to purchase a debt service reserve insurance policy relating to the Bonds to satisfy 50% of the reserve requirement, and (iv) to fund a cash deposit to the reserve fund for the remaining 50% of the reserve requirement. The Local Obligations, together with certain available funds on hand, were issued to refund 2012 Local Agency Bonds.
The 2022 Bonds are special obligations of the Authority secured and payable solely from pledged Special Tax Revenues derived by Special Taxes (“Special Taxes”) collected by the Districts from real property within their boundaries and other amounts held under the Fiscal Agent Agreement. The 2022 Bonds are not a debt or liability of the City, the State of California, or any of its political subdivisions and neither the City, the State of California, nor any of its political subdivisions is liable. The Bonds do not constitute indebtedness within the meaning of any constitutional or statutory debt limit or restriction.
Principal ranges from $1,395,000 to $3,065,000 maturing annually through September 1, 2034. The bonds bear interest at rates ranging from 4.0% to 5.0%, due semiannually on March 1 and September 1.
The following is a schedule by years of future minimum debt service requirements as of June 30, 2024:
Year Ending June 30, Principal Interest Total
2025 2,290,000 $ 1,204,250 $ 3,494,250 $ 2026 2,405,000 1,086,875 3,491,875 2027 2,520,000 963,750 3,483,750 2028 2,645,000 834,625 3,479,625 2029 2,770,000 699,250 3,469,250 2030 - 2034 11,075,000 1,536,125 12,611,125 2035 1,525,000 38,125 1,563,125 Totals 25,230,000 $ 6,363,000 $ 31,593,000 $
347
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-57-
7) LONG-TERM LIABILITIES, (Continued)
2016 Local Agency Refunding Bonds Series A
On January 20, 2016, the Murrieta Financing Authority issued $49,790,000 Local Agency Refunding Bonds 2016 Series A (the “2016A Bonds”). The 2016A Bonds were issued to (i) acquire $20,100,000 City of Murrieta Community Facilities District No. 2000-2 Area A (“CFD 2000-2 A”) 2016 Special Tax Refunding Bonds; $9,195,000 Community Facilities District 2000-2 Area B (“CFD 2000-2 B”) 2016 Special Tax Refunding Bonds, $14,865,000 Community Facilities District 2003-3 (“CFD 2003-3”) 2016 Special Tax Refunding Bonds, $1,980,000 Community Facilities District No. 2003-4 (“CFD 2003-4”) 2016 Special Tax Refunding Bonds, and $3,650,000 Community Facilities District No. 2005-1 (“CFD 2005-1”) 2016 Special Tax Refunding Bonds – (collectively, the “Local Obligations” or the “Districts”), and (ii) to fund a cash deposit to the reserve fund for the reserve requirement. The 2016A Bonds were issued by a private sale through a placement agent.
The 2016A Bonds are special obligations of the Authority secured and payable solely from pledged Special Tax Revenues derived by Special Taxes (“Special Taxes”) collected by the Districts from real property within their boundaries and other amounts held under the Fiscal Agent Agreement. The 2016A Bonds are not a debt or liability of the City, the State of California, or any of its political subdivisions and neither the City, the State of California, nor any of its political subdivisions is liable. The Bonds do not constitute indebtedness within the meaning of any constitutional or statutory debt limit or restriction.
Principal ranges from $1,065,000 to $3,470,000 maturing annually through September 1, 2035. The bonds bear interest at rates ranging from 3.030% to 3.680%, due semiannually on March 1 and September 1.
The following is a schedule by years of future minimum debt service requirements as of June 30, 2024:
Year Ending June 30, Principal Interest Total
2025 2,465,000 $ 1,145,887 $ 3,610,887 $ 2026 2,555,000 1,064,488 3,619,488 2027 2,630,000 981,174 3,611,174 2028 2,710,000 895,430 3,605,430 2029 2,795,000 800,492 3,595,492 2030 - 2034 15,600,000 2,351,520 17,951,520 2035 - 2036 4,755,000 134,780 4,889,780 Totals 33,510,000 $ 7,373,771 $ 40,883,771 $
348
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
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7) LONG-TERM LIABILITIES, (Continued)
Notes Payable
On December 19, 2017, the City entered into a purchase and sale agreement with Southern California Edison to acquire an estimated 6,424 streetlight poles (property) to allow for conversion of the current high-pressure sodium fixtures to energy efficient light-emitting diodes. On April 10, 2018, the City entered into a finance agreement with Banc of America Leasing and Capital LLC to finance the cost of acquiring the streetlight poles. On October 6, 2020, the City entered into a refinancing agreement with Banc of America to take advantage of lower interest rates. Payments are to be paid by the City on each June 1 and December 1 consist of principal and interest at a rate of 3.25% per annum. The balance outstanding on the lease payable at June 30, 2024, was $4,693,000. The following is a schedule by years of future minimum debt service requirements as of June 30, 2024:
Year Ending June 30, Principal Interest Total
2025 429,000 $ 149,045 $ 578,045 $ 2026 443,000 134,989 577,989 2027 458,000 120,461 578,461 2028 473,000 105,437 578,437 2029 488,000 89,961 577,961 2030 - 2034 2,402,000 199,175 2,601,175 Totals 4,693,000 $ 799,068 $ 5,492,068 $
On May 21, 2020, the City entered into purchase agreement to purchase copiers. The agreement is payable in annual principal and interest payments of 40,029 through 2026. The agreement bears an annual rate of .8927%. The balance outstanding on the note payable at June 30, 2024, was $43,137. The following is a schedule by years of future minimum debt service requirements as of June 30, 2024:
Year Ending June 30, Principal Interest Total
2025 39,806 $ 223 $ 40,029$ 2026 3,331 3 3,334 Totals 43,137 $ 226 $ 43,363$
Lease Liability
As of June 30, 2024, the City had 1 active equipment lease. The lease has payments that range from $91,459 to $91,459 and interest rates that range from 1.6063% to 1.6063%. As of June 30, 2024, the total combined value of the lease liability is $600,982, the total combined value of the short-term lease liability is $81,805. The combined value of the right to use asset, as of June 30, 2024 of $852,191 with accumulated amortization of $200,408 is included within the Lease Class activities table found below.
349
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
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7) LONG-TERM LIABILITIES, (Continued)
Lease Liability (continued)
As of June 30, 2024, the City had 1 active other lease. The lease has payments that range from $9,249 to $9,249 and interest rates that range from 2.7520% to 2.7520%. As of June 30, 2024, the total combined value of the lease liability is $598,339, the total combined value of the short-term lease liability is $96,570. The combined value of the right to use asset, as of 06/30/2024 of $618,688 with accumulated amortization of $20,623 is included within the Lease Class activities table found below.
As of June 30, 2024, the City had 45 active vehicle leases. The leases have payments that range from $6,585 to $19,894 and interest rates that range from 3.6100% to 8.1396%. As of June 30, 2024, the total combined value of the lease liability is $664,731, the total combined value of the short-term lease liability is $271,614. The combined value of the right to use asset, as of June 30, 2024 of $1,517,454 with accumulated amortization of $883,280 is included within the Lease Class activities table found below.
Asset Class
Lease Asset
Value
Accumulated
Amortization
Vehicles 1,517,454 $ 883,280 $
Equipment 852,191 200,408
Other 618,688 20,623
Total Leases 2,988,333 $ 1,104,311 $
Total future minimum lease payments under lease agreements are as follows:
Year Ending June 30, Principal Interest Total
2025 449,989 $ 59,870 $ 509,859 $ 2026 355,459 43,192 398,651 2027 329,957 28,348 358,305 2028 261,707 15,238 276,945 2029 197,003 8,408 205,411 2030 - 2034 269,937 5,471 275,408 Totals 1,864,052 $ 160,527 $ 2,024,579 $
Subscription Liability
As of June 30, 2024, the City had 9 active subscriptions. The subscriptions have payments that range from $7,151 to $389,329 and interest rates that range from 0.0% to 3.48%. As of June 30, 2024, the total combined value of the subscription liability is $1,751,771, and the total combined value of the short-term subscription liability is $626,748. The combined value of the right to use asset, as of June 30, 2024 of $2,756,655 with accumulated amortization of $867,359 is included within the right to use subscriptions class of capital assets, found in Note
6. 350
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-60-
7) LONG-TERM LIABILITIES, (Continued)
Subscription Liability (continued)
Total future minimum lease payments under lease agreements are as follows:
Year Ending June 30, Principal Interest Total
2025 626,748 $ 52,954 $ 679,702 $ 2026 364,595 34,407 399,002 2027 377,538 21,691 399,229 2028 382,890 8,526 391,416 Totals 1,751,771 $ 117,578 $ 1,869,349 $
Long-term liabilities are generally liquidated by the General Fund.
Fiduciary Fund
As of June 30, 2024, long-term debt is reported in a private-purpose trust fund due to the dissolution of redevelopment agencies by the state of California.
The following is a schedule of changes in long-term debt of the Successor Agency for the fiscal year ended June 30, 2024:
Beginning
Balance Additions Deletions
Ending
Balance
Due Within
One Year
Due Beyond
One Year
Other Debt:
2017 Series A 10,900,000$ - $ (765,000)$ 10,135,000 $ 785,000 $ 9,350,000 $ Premium 927,316 - (76,218) 851,098 - 851,098 2017 Series B 20,820,000 - (900,000) 19,920,000 930,000 18,990,000 Discount (300,891) - 21,240 (279,651) - (279,651) Total 32,346,425 $ - $ (1,719,978)$ 30,626,447 $ 1,715,000 $ 28,911,447 $
On October 16, 2017, the Successor Agency to the Murrieta Redevelopment Agency issued $14,480,000 Tax Allocation Refunding Bonds, Series 2017 A. The Bonds were issued (i) to currently refund the outstanding principal balances of the Murrieta Redevelopment Project Tax Allocation Bonds of 2002 and Murrieta Redevelopment Project Tax Allocation Bonds of 2005, (ii) to purchase a municipal bond insurance policy and (iii) to pay certain issuance costs.
The Bonds bear interest at rates varying from 2% to 5%. Interest on the bonds is payable semiannually each February 1 and August 1 beginning February 1, 2018. The Bonds are due in annual installments from $545,000 to $1,105,000 through August 2035.
The Successor Agency to the Murrieta Redevelopment Agency is required by the 2017 A Tax Allocation Parity Bonds to maintain reserve funds of the lesser of (1) 125% average annual debt service, (2) maximum annual debt service, and (3) 10% original proceeds. As of the fiscal year ended June 30, 2024, this reserve requirement was met.
351
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-61-
7) LONG-TERM LIABILITIES, (Continued)
Fiduciary Fund (continued)
The following is a schedule by years of future minimum debt service requirements as of June 30, 2024:
Year Ending June 30, Principal Interest Total
2025 785,000 $ 392,881 $ 1,177,881 $ 2026 815,000 360,731 1,175,731 2027 855,000 318,981 1,173,981 2028 895,000 275,231 1,170,231 2029 935,000 229,481 1,164,481 2030 - 2034 4,710,000 563,965 5,273,965 2035 - 2036 1,140,000 35,938 1,175,938 Totals 10,135,000 $ 2,177,208 $ 12,312,208 $
On October 16, 2017, the Successor Agency to the Murrieta Redevelopment Agency issued $25,230,000 Tax Allocation Refunding Bonds, Series 2017 B. The Bonds were issued (i) to currently refund the outstanding principal balance of the Murrieta Redevelopment Project Tax Allocation Bonds of, (ii) to purchase a municipal bond insurance policy and (iii) to pay certain issuance costs. The bonds consist of $9,175,000 serial bonds with annual maturity dates from August 1, 2018 through August 1, 2027, with interest rates ranging from 1.60% to 3.25%, term bonds of $5,165,000 with an interest rate of 3.625% and annual maturity dates from August 1, 2028 through August 1, 2032 and term bonds of $5,615,000 with an interest rate of 3.75% and term bonds of $10,440,000 with annual maturity dates from August 1, 2033 through August 1, 2037. Interest is payable semiannually beginning February 1, 2018.
The Successor Agency to the Murrieta Redevelopment Agency is required by the 2017 B Tax Allocation Parity Bonds to maintain reserve funds of the lesser of (1) 125% average annual debt service, (2) maximum annual debt service, and (3) 10% original proceeds. As of the fiscal year ended June 30, 2024, this reserve requirement was met.
The following is a schedule by years of future minimum debt service requirements as of June 30, 2024:
Year Ending June 30, Principal Interest Total
2025 930,000 $ 699,625 $ 1,629,625 $ 2026 950,000 672,588 1,622,588 2027 975,000 643,103 1,618,103 2028 1,010,000 611,457 1,621,457 2029 1,045,000 576,102 1,621,102 2030 - 2034 6,320,000 2,263,623 8,583,623 2035 - 2038 8,690,000 702,749 9,392,749 Totals 19,920,000 $ 6,169,247 $ 26,089,247 $
352
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
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8) INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Due To/From Other Funds
The following represents the composition of interfund balances as of June 30, 2024:
Due To Due From Amount
General Fund Federal Grants Special Revenue Fund 559,258 $ Nonmajor Governmental Funds 1,986,692
Total 2,545,950 $
These were the result of temporary deficit cash balances. The deficits are expected to be repaid when receivables are collected in the following fiscal year.
Advances To/From Other Funds
The General Fund has advanced $197,149 to the Development Impact Fees Capital Projects Fund for construction of City facilities. The advance is expected to be repaid from future development fees collected over several years.
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353
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
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8) INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Continued)
lnterfund Transfers
Transfers In General Fund Federal Grants
Development
Impact
Nonmajor
Governmental
Funds Total
General Fund - $ 506,665$ - $ 27 $ 506,692$ Fire District 3,783,905 - 170,678 - 3,954,583 Nonmajor Governmental Funds 3,131,864 - - 1,151,246 4,283,110 Total 6,915,769 $ 506,665 $ 170,678 $ 1,151,273 $ 8,744,385 $ Transfers Out
During the year, interfund transfers were made for purposes of financing administrative costs, capital improvements and repayment of debt. Specifically, the following transfers were made:
x The Federal American Rescue Plan Act (ARPA) Grant Funds transferred $506,665 to the General Fund for grant eligible items and capital projects. x Non-Governmental Funds-Other Grant Funds transferred $27 to General Fund for grant- eligible items.
x The General Fund transferred $3,783,905 to the Fire District Fund to augment the Fire District Fund budget to support the district's programs and services. x The Development Impact Fee Fund transferred $170,678 to Fire District Fund to support ongoing capital projects.
x The General Fund transferred $2,166,491 to the Non-Major Governmental Funds - Community Services District Fund budget to support the district's programs, services. x The General Fund transferred $513,454 to Non-Major Governmental Funds to support operations and maintenance of Local Zones and Lighting and Landscape Districts. x The General Fund transferred $300,000 to Non-Major Governmental Funds - NPDES Special Revenue Fund to control pollutant discharges into surface waters. x The General Fund transferred $151,919 to Non-Major Governmental Funds - Citywide Debt Service Fund to support debt service of Streetlights. x The Non-Major Governmental Funds - Measure A Special Revenue Fund and Community Services District Fund transferred a total of $1,150,474 to Non-Major Governmental Funds - Citywide Debt Service Fund for debt service.
x The Non-Major Governmental Funds - Library Grant Fund transferred $783 to Non-Major Governmental Funds - Library Fund for grant eligible items.
354
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-64-
9) FUND BALANCE
Details of the City’s governmental fund balances at June 30, 2024, are presented below:
General Fund Fire District
Federal
Grants
Development
Impact
Other
Governmental
Funds
Total
Governmental
Funds
Nonspendable:
Prepaid Costs and Other Assets 323,301$ 31,365 $ - $ - $ 9,192$ 363,858 $ Inventories 44,899 5,330 - - 22,143 72,372 Long-Term Advances and Loans 3,374,377 - - - - 3,374,377 Endowments - - - - 500,000 500,000 Restricted:
Infrastructure Development - - - - 1,863,131 1,863,131 Fire Protection - 4,603,654 - - - 4,603,654 Public Safety - - - - 606,846 606,846 Public Library Services - - - - 1,261,289 1,261,289 Regional Transportation
Improvement Projects - - - 57,159,287 2,248,011 59,407,298 Housing - - - - 15,347,314 15,347,314 Street Maintenance - - - - 30,908,209 30,908,209 Area Drainage - - - - 6,074,063 6,074,063 Air Pollution Reduction Measures - - - - 969,083 969,083 Storm Drain Pollution
Reduction Measures - - - - 1,282,645 1,282,645 Community Service Programs - - - - 7,046,369 7,046,369 Historic Preservation - - - - 17,011 17,011 Cash Escrow - Street Lights 61,684 - - - - 61,684 Debt Service 75,687 - - - 3,939,033 4,014,720 Committed to:
Public Safety 116,662 116,662
Capital Improvement Projects 9,793,617 9,793,617
Continuing Appropriations 1,288,495 1,288,495
Land Acquisitions 1,766,247 - - - - 1,766,247 Economic Contingency Reserve 8,382,884 8,382,884
Operating Reserve 29,564,177 - - - - 29,564,177 Pension Rate Stabilization Reserve 7,000,000 - - - - 7,000,000 OPEB 115 Trust (CERBT) 2,000,000 - - - - 2,000,000 Fire Fleet Replacement Reserve 3,815,443 - - - - 3,815,443 Fleet Replacement Reserve 4,539,815 - - - - 4,539,815 Facility Repairs Reserve 1,367,000 - - - - 1,367,000 CSD Facility Repair Reserve 7,605,850 - - - - 7,605,850 Fire Facility Repair Reserve 1,935,000 1,935,000 Information Technology Reserve 1,000,000 1,000,000 Continuing Operations 6,025,000 - - - - 6,025,000 Assigned:
General Plan 21,181 - - - - 21,181 Repairs and Equipment 22,920 - - - - 22,920 Dare Program - -
Produce for People 8,381 - - - - 8,381 Unassigned 52,796,685 - (206,361) - (517,237) 52,073,087 Total Fund Balance (Deficit) 142,929,305$ 4,640,349 $ (206,361) $ 57,159,287$ 71,577,102 $ 276,099,682 $
The unassigned category above encompasses fund designations that do not satisfy the criteria of the other categories presented. Included in Committed fund balance of the General Fund are continuing appropriations of $1,288,495. The continuing appropriations represent open contract amounts and their related appropriation at year-end that are expected to be honored upon performance by the vendors in the following fiscal year. 355
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-65-
10) SUMMARY DISCLOSURE OF SELF-INSURANCE CONTINGENCIES
The City is exposed to various risks of losses, including tort claims; theft of, damage to, and destruction of property; cyber-crimes; employment practices claims; professional errors and omissions; and natural disasters. The City currently reports all of its risk management activities in its Risk Management Internal Service Fund. The City participates in a risk retention pool and jointly funds coverage programs with other public agencies. The City’s self-insured retention varies by program.
The General Liability program provides a coverage limit of $50 million with a $125,000 self- insured retention. The Liability Program provides defense and indemnity coverage against claims and suits arising from covered occurrences, including auto liability, bodily injury, property damage, personal injury, and public officials’ errors and omissions.
The Workers’ Compensation program provides a coverage limit of $5 million with a $250,000 self-insured retention. The Workers’ Compensation program provides statutory benefits for employee injuries arising out of and in the course of employment and $5,000,000 in employers’ liability coverage.
The all-risk Property program provides group-purchased commercial insurance coverage on a replacement cost basis. The program provides a coverage limit of $100 million with a $100,000 pool deductible (inclusive of a $10,000 City deductible). The auto physical damage program provides coverage to City-owned vehicles. Coverage is available on a replacement cost basis.
The Auto Physical Damage program provides group-purchased commercial insurance for physical damage to vehicles. The program provides a coverage limit of $10 million with a $25,000 pool deductible (inclusive of $5,000 City deductible).
The Employment Practices Liability (EPL) program provides a coverage limit of $50 million with a $100,000 self-insured retention. The EPL program provides coverage for employment- related lawsuits, such as wrongful termination and discrimination.
The Cyber Liability program provides a coverage limit of $12 million with a $5,000 self-insured retention. Cyber liability provides coverage for information security and privacy liability, privacy notification costs, regulatory defense & penalties, website media content liability, cyber extortion, first-party data protection & business interruption losses.
The Crime program provides a coverage limit of $1 million with a $2,500 City deductible. The Crime program provides coverage for public employee dishonesty, forgery or alteration, and computer fraud coverage. The Deadly Weapon Response program provides coverage for third-party injuries while on City property, including defense costs when a weapon has been used or brandished. The program also covers crisis management services and first-party property damage, including business interruption.
356
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-66-
10) SUMMARY DISCLOSURE OF SELF-INSURANCE CONTINGENCIES, (Continued)
Claims expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported (IBNR). At June 30, 2024, the amount of these liabilities was $13,195,313. The amount represents an estimate of $8,938,601 for June 30, 2024, and $4,256,712 of IBNR. This liability is the City’s best estimate based on available information.
The following represents the changes in claims liabilities:
Year
Beginning of
Year
Changes in
Estimates Claim Payments End of Year
2024 13,306,371$ 34,349 $ 145,407 $ 13,195,313$ 2023 9,991,726 3,372,569 57,924 13,306,371 2022 8,740,016 3,092,680 1,840,970 9,991,726
The City of Murrieta is a member of the Public Entity Risk Management Authority (a joint powers authority) for the purpose of pooling losses and claims of general liability and workers’ compensation with those of other member cities and agencies. The City continues to carry commercial insurance, both primary and excess, for all other risks of loss.
11) PENSION PLANS
A) General Information about the Pension Plans
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 four rate plans (two miscellaneous and two 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.
357
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-67-
11) PENSION PLANS, (Continued)
A) General Information about the Pension Plans, (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.
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358
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-68-
11) PENSION PLANS, (Continued)
A) General Information about the Pension Plans, (Continued)
The Plan’s provisions and benefits in effect at June 30, 2024 are summarized as follows:
Hire Date
Tier I
Prior to
January 1, 2013
Tier II
On or After
January 1, 2013
PEPRA
On or After
January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life 50 Monthly for Life
Retirement Age 55 60 62
Monthly Benefits, as a Percent of Eligible
Compensation Highest Single Year 3-Year Average 3-Year Average Required Employee Contribution Rates 8.00% 7.00% 7.00%
Required Employer Contribution Rates:
Normal Cost Rate 16.24% 10.38% 7.75%
Payment of Unfunded Liability 1,689,087 $ - $ - $ Hire Date
Tier I
Prior to
October 15, 2011
Tier II
On or After
October 15, 2011
TIER III - PEPRA
On or After
January 1, 2013
Benefit Formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 55 57
Monthly Benefits, as a Percent of Eligible
Compensation Highest Single Year 3-Year Average 3-Year Average Required Employee Contribution Rates 9.00% 9.00% 13.00% Required Employer Contribution Rates:
Normal Cost Rate 27.11% 22.83% 13.54%
Payment of Unfunded Liability 1,816,020 $ - $ - $ Hire Date
Tier I
Prior to
January 1, 2013
TIER III - PEPRA
On or After
January 1, 2013
Benefit Formula 3% @ 50 2.7% @ 57
Benefit Vesting Schedule 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 57
Monthly Benefits, as a Percent of Eligible
Compensation Highest Single Year 3-Year Average
Required Employee Contribution Rates 9.00% 13.00%
Required Employer Contribution Rates:
Normal Cost Rate 27.11% 13.54%
Payment of Unfunded Liability 1,017,128 $ - $ Miscellaneous
Safety - Police
Safety - Fire
359
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-69-
11) PENSION PLANS, (Continued)
A) General Information about the Pension Plans, (Continued)
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, 2024 were $12,255,201. The actual employer payments of $10,841,912 made to CalPERS by the City during the measurement period ended June 30, 2024 differed from the City’s proportionate share of the employer’s contributions of $9,423,502 by $1,418,410, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
B) 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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
360
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-70-
11) PENSION PLANS, (Continued)
B) Net Pension Liability, (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The collective total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions:
Miscellaneous Safety
Valuation Date June 30, 2022 June 30, 2022
Measurement Date June 30, 2023 June 30, 2023
Actuarial Cost Method Entry-Age Actuarial Entry-Age Actuarial Cost M ethod Cost Method
Asset Valuation Method Fair Value of Assets Fair Value of Assets Actuarial Assumptions:
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Salary Increases (1) (1)
Mortality Rate Table (I)
(2) (2)
Post-Retirement Benefit Increase (3) (3)
1) Varies by entry age and service.
2) Derived using CalPERS' membership data for all funds 3) The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
(I) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short- term and long-term market return expectations. 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.
361
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-71-
11) PENSION PLANS, (Continued)
B) Net Pension Liability, (Continued)
The expected real rates of return by asset class are as follows:
Asset Class
Assumed Asset
Allocation Real Return 1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.
Change of Assumptions
There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to
6.90%. In determining the long-term expected rate of return, CalPERS took into account long- term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
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.
362
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-72-
11) PENSION PLANS, (Continued)
B) 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.
C) Proportionate Share of Net Pension Liability
The following table shows the City’s proportionate share of the Plan’s net pension liability over the measurement period.
Miscellaneous Plan:
Proportionate Share
of Total Pension
Liability
Proportionate Share
of Fiduciary Net
Pension Liability
Proportionate Share
of Net Pension
Liability
Balance at 6/30/2022 (VD) 93,688,866 $ 72,757,880 $ 20,930,986 $ Balance at 6/30/2023 (MD) 101,041,972 78,080,515 22,961,457 Net Changes during 2022-23 (7,353,106) $ (5,322,635) $ (2,030,471) $ Safety Plan:
Balance at 6/30/2022 (VD) 185,498,639 $ 143,736,815 $ 41,761,824 $ Balance at 6/30/2023 (MD) 202,469,462 155,020,765 47,448,697 Net Changes during 2022-23 (16,970,823) $ (11,283,950) $ (5,686,873) $
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 th e total Plan as of the June 30, 2022 and 2023 measurement dates was as follows:
Miscellaneous Safety
Proportion - June 30, 2022 0.44785% 0.46975%
Proportion - June 30, 2023 0.44732% 0.60775%
Change - Increase (Decrease) -0.00053% 0.13800%
363
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-73-
11) PENSION PLANS, (Continued)
C) 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 of the Plan as of the measurement date, calculated using the discount rate of 6.9 percent, 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 percent) or 1 percentage-point higher (7.9 percent) than the current rate:
Miscellaneous Safety
One Percent Decrease 5.90% 5.90%
Net Pension Liability 36,626,955 $ 75,223,904 $
Current Discount Rate 6.90% 6.90%
Net Pension Liability 22,961,457 $ 47,448,697 $
One Percent Increase 7.90% 7.90%
Net Pension Liability (Asset) 11,713,570 $ 24,740,488 $
Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Net difference between
projected and actual earnings
on pension plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all
members that are provided with benefits (active,
inactive and retired) as of the beginning of the
measurement period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).
364
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-74-
11) PENSION PLANS, (Continued)
C) Proportionate Share of Net Pension Liability, (Continued)
The EARSL for PERF C for the measurement period ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2022), the City’s net pension liability was $62,692,810. For the measurement period ending June 30, 2023 (the measurement date), the Local Government incurred a pension expense of $19,987,593. As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Changes of assumption 4,155,459$ - $
Differences between expected and
actual experience 4,656,604 480,194
Differences between projected and
actual investment earnings 10,211,007 -
Differences between employer's
contributions and proportionate
share of contributions 1,057,681 2,010,639
Change in employer's proportion 4,191,208 39,299
Pension contributions made subsequent
to the measurement date 12,255,201 -
36,527,160$ 2,530,132 $
The amounts above are net of outflows and inflows recognized in the 2021-22 measurement period expense. Contributions subsequent to the measurement date of $12,255,201 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:
Year Ending June 30,
Deferred
Outflows/(Inflows) of
Resources
2025 7,617,711 $
2026 5,166,611
2027 8,669,586
2028 287,919
2029 -
Thereafter -
Total 21,741,827 $
365
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-75-
11) PENSION PLANS, (Continued)
E) Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $742,453 for the outstanding amount of contributions to the pension plan required for the year then ended.
12) OPEB PLANS
A) General Information about the OPEB Plans
Plan Description
The City provides other postemployment benefits (OPEB) through the California Employers’ Retiree Benefit Fund (CERBT), a single-employer defined benefit post-employment healthcare plan administered by the California Public Employees’ Retirement System (CalPERS) as follows:
Members of all groups who retired prior to July 1, 2007, receive a monthly contribution of $695.
The MGEA and MSA groups and employees covered by the Management and Confidential Compensation Plan hired prior to January 1, 2008, who choose to continue their CalPERS health insurance upon retirement, are eligible to receive a monthly contribution to a Retirement Health Savings Plan (RHS) in the amount of $833. Those hired after January 1, 2008, but before July 14, 2014, and retire with 10 years of City service can receive $360 per month until Medicare age and then will receive the minimum mandated amount for employer contributions to participate in Public Employees Medical and Hospital Care Act (PEMHCA). Those hired after January 1, 2008, but before July 14, 2014, and retire with less than 10 years of City service and those hired after July 15, 2014, and retire from the City, will receive the minimum mandated amount for employer contributions to participate in PEMCHA (PEMCHA minimum).
Employees of the MPOA and MPMA groups hired prior to July 1, 2007, who choose to continue their CalPERS health insurance upon retirement are eligible to receive a monthly contribution to a Retirement Health Savings Plan (RHS) in the amount of $833. Those hired after July 1, 2007 who retire with 10 years of City service can receive $360 per month until Medicare age and then will receive the PEMCHA minimum contribution. Those hired after July 1, 2007, who retire with less than 10 years of City service will receive the PEMCHA minimum contribution.
366
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-76-
12) OPEB PLANS, (Continued)
A) General Information about the OPEB Plans, (Continued)
Plan Description (Continued)
Employees of the MFA and MFMA groups hired prior to January 1, 2010 who choose to continue their CalPERS health insurance upon retirement are eligible to receive a monthly contribution to a Retirement Health Savings Plan (RHS) in the amount of $833. Those hired after January 1, 2010, who retire with 10 years of City service can receive $360 per month until Medicare age and then will receive the PEMCHA minimum contribution. Those hired after January 1, 2010, who retire with less than 10 years of City service will receive the PEMCHA minimum contribution.
Separate financial statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza, North 400 Q Street, Sacramento, CA 95814 or by visiting the CalPERS website at www.calpers.ca.gov.
Employees Covered
As of the June 30, 2023 valuation date, the following current and former employees were covered by the benefit terms under the plan:
Inactive Employees or Beneficiaries Currently Receiving Benefits 167
Inactive Employees or Beneficiaries Entitled to but not yet Receiving Benefits 30
Active Employees 403
Total 600
Contributions
The plan and its contribution requirements are established by City policy and may be amended by the City Council. The annual contribution is based on the actuarially determined contribution. For the year ended June 30, 2024, the City’s cash contributions were $1,524,269 in premium payments and the estimated implied subsidy was $455,249 resulting in total contributions of $1,979,518.
B) Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023. A summary of the principal assumptions and methods used to determine the net OPEB liability is shown below.
367
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-77-
12) OPEB PLANS, (Continued)
B) Net OPEB Liability, (Continued)
Actuarial Assumptions
The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Valuation Date June 30, 2023
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal, Level Percent of Pay Actuarial Assumptions:
Discount Rate 5.06%
Inflation 2.30%
Projected Salary Increase 2.80% Per Annum, in Aggregate Expected Long-Term Investment Rate of Return 5.10%
Healthcare Cost Trend Rates 7.40%, trending down to 4.14% over 52 years Pre-Retirement Turnover Derived from CalPERS Pension Plan Mortality Derived from CalPERS Pension Plan Updated
to Reflect Most Recent Experience Study
Long-Term Expected Rate of Return
The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plans’ target asset allocation as of June 30, 2023, are summarized in the following table:
Asset Class
Strategy I
Allocation
Long-Term
Expected Real
Rate of Return
CEBRT:
Global Equity 49.00% 6.80%
Fixed Income 23.00% 3.70%
REITs 20.00% 6.00%
TIPs 5.00% 2.80%
Commodities 3.00% 3.40%
Total 100.00%
368
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-78-
12) OPEB PLANS, (Continued)
B) Net OPEB Liability, (Continued)
Discount Rate
The discount rate of 5.06% was used in the valuation. It is assumed that the City will contribute in accordance with the Funding Policy. Under this Funding Policy, the OPEB Trust is not expected to be depleted in the future.
Changes in Assumption
The discount rate was changed from 5.70% to 5.06%.
C) Changes in the Net OPEB Liability
The changes in the net OPEB liability are as follows:
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability (Asset)
Balance - June 30, 2022
(Measurement Date) 33,795,393 $ 5,733,812 $ 28,061,581 $ Changes in the Year:
Service Cost 811,752 - 811,752 Interest on the Total OPEB Liability 1,916,190 - 1,916,190 Differences Between Actual and
Expected Experience 3,833,913 - 3,833,913 Changes in Assumptions 2,344,073 - 2,344,073 Contribution - Employer - 1,979,518 (1,979,518) Net Investment Income - 368,209 (368,209) Administrative Expenses - (1,666) 1,666 Benefit Payments (1,524,269) (1,524,269) - Implicit Subsidy Credits (455,249) (455,249) - Net Changes 6,926,410 366,543 6,559,867 Balance - June 30, 2023
(Measurement Date) 40,721,803 $ 6,100,355 $ 34,621,448 $ Increase (Decrease)
Change of Benefit Terms
There were no changes of benefit terms.
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
369
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-79-
12) OPEB PLANS, (Continued)
C) Changes in the Net OPEB Liability, (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (4.06%) or one percentage point higher (6.06%) than the current discount rate:
One Percent
Decrease
(4.06%)
Discount Rate
(5.06%)
One Percent
Increase
(6.06%)
Net OPEB Liability 39,179,187$ 34,621,448 $ 30,762,482 $
Sensitivity of the Net OPEB Liability to Changes in Healthcare Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates:
One Percent
Decrease
Current
Healthcare
One Percent
Increase
Net OPEB Liability 33,574,126$ 34,621,448 $ 35,802,434 $
D) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2024, the City recognized OPEB expense of $4,126,294. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
OPEB Contributions Subsequent to Measurement Date 2,063,847$ - $ Differences Between Actual and Expected Experience 4,376,618 (212,981) Change in Assumptions 8,935,241 (4,818,981)
Differences Between Projected and Actual Earnings 399,428 - Total 15,775,134 $ (5,031,962) $
370
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-80-
12) OPEB PLANS, (Continued)
D) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, (Continued)
Deferred outflows of resources related to contributions subsequent to the measurement date of $2,063,847 will be recognized as a reduction of the net OPEB liability in the subsequent fiscal year.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Fiscal Year Ending June 30, Amount
2025 1,732,837 $
2026 1,698,049
2027 1,390,618
2028 1,120,650
2029 379,991
Thereafter 2,357,180
At June 30, 2024, the City had no outstanding amount of contributions to the OPEB plans required for the year ended June 30, 2024.
13) JOINT FINANCING ACQUISITION AGREEMENTS
On September 1, 1991, the City entered into a joint financing and acquisition agreement with the Community Facilities District No. 89-5 (Rancon Business Center) of the County of Riverside and Rancon Business Center/Rancho California, a California joint venture. The boundaries of the CFD No. 89-5 are completely within the boundaries of the City of Murrieta; however, the Rancho California Water District now functions as the legislative body of the CFD No. 89-5. On October 24, 1991, the CFD No. 89-5 issued its $18,825,000 Series 1991.
Bonds to provide financing for the construction and acquisition of certain public facilities, which include the acquisition and construction of certain roads and associated landscaping facilities.
Funds for the bond debt service requirements, as they come due, are to be obtained from a special tax levied against properties within the CFD No. 89-5. The road facilities that were previously to be owned, maintained, and operated by the County are to be owned, maintained, and operated by the City.
371
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-81-
13) JOINT FINANCING ACQUISITION AGREEMENTS, (Continued)
On December 1, 1991, the City entered into a joint financing and acquisition agreement with the Community Facilities District No. 89-4 (Walsh Medical Arts Center) of the County of Riverside and Kevin P. Walsh and Regina M. Walsh. The boundaries of the CFD No. 89-4 are completely within the boundaries of the City; however, the board of the County will continue to function as the legislative body of the CFD No. 89-4. On December 20, 1991 the CFD No. 89-4 issued its $4,825,000 Series 1991 Bonds to provide financing for the construction and acquisition of certain public facilities, which include the acquisition and construction of certain roads and associated landscaping facilities and certain flood control and drainage facilities.
Funds for the bonds debt service requirements, as they come due, are to be obtained from a special tax levied against properties within the CFD No. 89-4. The road facilities that were previously to be owned, maintained, and operated by the County are to be owned, maintained, and operated by the City. The flood facilities that were previously to be owned, maintained, and operated by the Riverside County Flood Control and Water Conservation District are to be owned, maintained, and operated by the City.
14) COMMUNITY FACILITIES DISTRICT (CFD) BONDS (NONCITY OBLIGATION)
The City has issued special tax bonds for various CFDs, which are payable from special taxes levied on property within the Community Facilities Districts according to a methodology approved by the voters within the District and by the City Council. Neither the faith and credit nor taxing power of the City is pledged to the payment of the bonds. Reserves have been established from the bond proceeds to meet delinquencies should they occur. If delinquencies occur beyond the amounts held in those reserves, the City has no duty to pay the delinquency out of any available funds of the City. The City acts solely as an agent for those paying taxes levied and the bondholders. As of June 30, 2024, the remaining balance on the bonds was $83,550,000.
15) JOINTLY GOVERNED ORGANIZATION
The City, in conjunction with six other governmental entities, created the Southwest Communities Financing Authority (Financing Authority) on November 30, 2004. The Financing Authority was formed to issue bonds for the construction of an animal shelter to be used by the member agencies. The Financing Authority’s board is composed of one member from each participating entity. The City has the following fiscal obligations: debt repayment of any bonds issued, administrative costs, and operation of the animal shelter. The debt service payments and the animal shelter operating costs will be prorated to each member based on the percentage of the animals housed at the facility, on an annual basis. The administrative costs will be borne equally by all members. For the year ended June 30, 2024, the City’s share of the payments was $102,499 and was paid from the General Fund.
372
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-82-
16) CONTINGENT LIABILITIES AND COMMITMENTS
Claims and Lawsuits
Various claims and lawsuits are pending against the City. Although the outcome of these claims and lawsuits is not presently determinable, in the opinion of the City’s management, on advice of legal counsel, it is unlikely that they will have a material adverse effect on the accompanying finan
cial statements.
The City has received Federal and State funds for specific purposes that are subject to review by the grantor agencies. These programs are subject to audit by the grantor agencies and upon further examination by the grantors, certain costs could be disallowed. The City expects any such amounts to be immaterial.
The decision of Flores v. City of San Gabriel highlighted not only the need for cities to audit their policies and practices related to Fair Labor Standards Act (FLSA) compliance but also to revisit long held and generally accepted assumptions and practices related to such. In June 2017, the City of Murrieta engaged an employment law firm to conduct an audit of its FLSA regular rate of pay and payroll practices. Through the employment law firm, a forensic accounting analysis has been completed for two labor groups including an analysis and settlement of the underpayment for nonexempt employees. The City has engaged the same employment law firm to conduct an audit of its FLSA regular rate of pay and underpayment for the remaining labor groups.
The estimated amount of remaining construction contract commitments at year-end is $3,830,098.
17) TOWN HALL ASSOCIATION ENDOWMENT
In March 2014, the City received a permanent endowment from the Town Hall Association upon dissolution of the Town Hall Association’s Board. The City maintains the $500,000 principal nonexpendable endowment in the Town Hall Association Permanent nonmajor fund.
The investment earnings on the nonexpendable endowment are to be spent 25% to the Murrieta Friends of the Library, 25% to the Murrieta High School’s Scholarship Foundation (aka Dollar for Scholars), and 50% to the Murrieta Library.
18) TAX ABATEMENTS
In accordance with California Government Code § 53083, the City provides sales tax rebates to a local sales tax generators based on sales tax generated at a site developed within the City of Murrieta. The City entered into an economic development agreement for sales tax rebates with a local sales tax generator in order to retain one of the City’s significant tax- generating business, jobs, and occupancy of land within City boundaries. The rebates are calculated based on the total taxes generated by the business.
For the fiscal year ended June 30, 2024, the City abated local sales tax totaling $240,528. 373
City of Murrieta
Notes to the Financial Statements
For the Year Ended June 30, 2024
-83-
19) RESTATEMENT OF NET POSITION AND FUND BALANCES
As a result of the implementation of GASB 100, as described in Note 1, the City is required to restate its June 30, 2023 governmental funds’ fund balance, as well as governmental activities net position. The 2016A LARB Debt Service Fund was previously reported as a major fund, and qualified as nonmajor for the year ending June 30, 2024. This qualifies as a change to or within the financial reporting entity, under the guidance of GASB 100.
In addition, a correction of an error was made to the prior year balance.
General Fund Housing Authority 2016A LARB
Total Nonmajor
Governmental
Funds
Fund balance, beginning of year, as previously reported 64,893,194$ 15,215,222 $ 1,883,583 $ 64,247,618 $ Adjustment - change from major to nonmajor fund - - (1,883,583) 1,883,583 Adjustment - correction of error (378,657) (24,635) - (24,635) Fund balance, beginning of year, as restated 64,514,537 $ 15,190,587 $ - $ 66,106,566$ Governmental
Activities
Successor
Agency Private-
Purpose Trust
Fund
Net position, beginning of year, as previously reported 559,084,667$ (28,575,565) $ Adjustment - correction of error (403,292) 1,211,904 Net position, beginning of year, as restated 558,681,375 $ (27,363,661) $ Nonmajor Governmental Funds
374
REQUIRED SUPPLEMENTARY INFORMATION
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City of Murrieta
Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous Last Ten Fiscal Years
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Measurement Date
Employer's
Proportion of the
Collectiv e Net
Pension Liability1
Employer's
Proportionate
Share of the
Collectiv e Net
Pension Liability Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability as
a percentage of the
Covered Payroll
Pension Plan's
Fiduciary Net
Position as a
percentage of the
Total Pension
Liability
6/30/2014 0.15475% 9,629,244 $ 9,304,312 $ 103.49% 77.57% 6/30/2015 0.05956% 11,366,253 9,517,674 119.42% 78.40% 6/30/2016 0.51059% 13,728,601 10,158,506 135.14% 74.06% 6/30/2017 0.36862% 15,796,583 9,962,258 158.56% 73.31% 6/30/2018 0.40440% 15,240,675 10,070,150 151.35% 75.26% 6/30/2019 0.41123% 16,467,905 11,695,857 140.80% 75.26% 6/30/2020 0.40933% 17,265,656 13,637,452 126.60% 76.89% 6/30/2021 0.44785% 8,503,848 14,879,086 57.15% 76.89% 6/30/2022 0.44732% 20,930,986 15,803,799 132.44% 77.66% 6/30/2023 0.45920% 22,961,457 18,443,881 124.49% 77.28% 1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.
377
City of Murrieta
Schedule of Contributions – Miscellaneous
Last Ten Fiscal Years
-85-
Fiscal Year
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess) Cov ered Payroll
Contributions as a
Percentage of
Covered Payroll
6/30/2015 1,721,566$ (1,721,566) $ - $ 9,517,674$ 18.09% 6/30/2016 1,695,346 (1,695,346) - 10,158,506 16.69% 6/30/2017 2,369,575 (2,369,575) - 9,962,258 23.79% 6/30/2018 1,953,751 (1,953,751) - 10,070,150 19.40% 6/30/2019 2,314,203 (2,314,203) - 11,695,857 19.79% 6/30/2020 2,604,872 (2,604,872) - 13,637,452 19.10% 6/30/2021 3,022,322 (3,022,322) - 14,876,806 20.32% 6/30/2022 4,316,257 (4,316,257) - 15,803,799 27.31% 6/30/2023 3,674,268 (3,674,268) - 18,443,881 19.92% 6/30/2024 4,024,435 (4,024,435) - 22,222,171 18.11% Notes to Schedule:
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.
Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
378
City of Murrieta
Schedule of Proportionate Share of the Net Pension Liability – Safety Last Ten Fiscal Years
-86-
Measurement Date
Employer's
Proportion of the
Collectiv e Net
Pension Liability1
Employer's
Proportionate
Share of the
Collectiv e Net
Pension Liability Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability as
a percentage of the
Covered Payroll
Pension Plan's
Fiduciary Net
Position as a
percentage of the
Total Pension
Liability
6/30/2014 0.29795% 18,540,083 $ 15,020,869 $ 123.43% 78.56% 6/30/2015 0.01046% 20,107,047 15,256,435 131.79% 78.40% 6/30/2016 0.77879% 25,005,813 16,124,346 155.08% 74.06% 6/30/2017 0.54565% 28,723,325 15,382,210 186.73% 73.31% 6/30/2018 0.48605% 28,518,996 15,967,350 178.61% 75.26% 6/30/2019 0.50053% 31,245,479 15,990,879 195.40% 75.26% 6/30/2020 0.52295% 34,841,083 19,219,826 181.28% 76.17% 6/30/2021 0.46975% 16,485,795 19,879,940 82.93% 76.17% 6/30/2022 0.60775% 41,761,824 21,489,931 194.33% 77.49% 6/30/2023 0.60775% 47,448,697 19,277,127 246.14% 76.57% 1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.
379
City of Murrieta
Schedule of Contributions– Safety
Last Ten Fiscal Years
-87-
Fiscal Year
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess) Covered Payroll
Contributions as a
Percentage of
Covered Payroll
6/30/2015 4,158,891$ (4,158,891) $ - $ 15,256,435$ 27.26% 6/30/2016 3,536,719 (3,536,719) - 16,124,346 21.93% 6/30/2017 3,418,924 (3,418,924) - 15,382,210 22.23% 6/30/2018 4,565,327 (4,565,327) - 15,967,350 28.59% 6/30/2019 4,164,182 (4,164,182) - 15,990,879 26.04% 6/30/2020 6,002,858 (6,002,858) - 19,219,826 31.23% 6/30/2021 6,946,768 (6,946,768) - 19,879,940 34.94% 6/30/2022 5,738,839 (5,738,839) - 21,489,931 26.70% 6/30/2023 7,167,644 (7,167,644) - 19,277,127 37.18% 6/30/2024 8,230,766 (8,230,766) - 23,158,170 35.54% Notes to Schedule:
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.
Additionally, the figures above do not include any liab ility impact that may have resulted from Golden H andshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liab ilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not ut ilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
380
City of Murrieta
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years*
-88-
Fiscal Year End 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Total OPEB Liability:
Service Cost 811,752 $ 608,999 $ 951,994 $ 624,020 $ 665,335 $ 1,134,456 $ Interest on Total OPEB Liability 1,916,190 2,008,234 1,802,951 1,921,683 1,611,799 1,284,754 Change in Assumptions 2,344,073 4,100,386 (7,228,470) 6,301,882 1,760,802 (8,713,953) Differences Between Expected
and Actual Experience 3,833,913 (56,650) 625,952 (337,835) 1,881,782 - Benefit Payments (1,979,518) (1,859,804) (1,734,698) (1,498,358) (1,429,954) (1,357,606) Net Change in Total OPEB Liability 6,926,410 4,801,165 (5,582,271) 7,011,392 4,489,764 (7,652,349) Total OPEB Liability - Beginning of Year 33,795,393 28,994,228 34,576,499 27,565,107 23,075,343 30,727,692 Total OPEB Liability - End of Year (a) 40,721,803 33,795,393 28,994,228 34,576,499 27,565,107 23,075,343 Plan Fiduciary Net Position:
Contributions - Employer 1,979,518 1,859,804 1,734,698 1,498,358 1,429,954 1,357,606 Net Investment Income 368,209 (886,356) 1,428,310 177,392 291,907 349,279 Administrative Expenses (1,666) (1,677) (1,966) (2,453) (1,013) (8,145) Benefit Payments (1,979,518) (1,859,804) (1,734,698) (1,498,358) (1,429,954) (1,357,606) Net Change in Plan Fiduciary Net Position 366,543 (888,033) 1,426,344 174,939 290,894 341,134 Plan Fiduciary Net Position - Beginning of Year 5,733,812 6,621,845 5,195,501 5,020,562 4,729,668 4,388,534 Plan Fiduciary Net Position - End of Year (b) 6,100,355 5,733,812 6,621,845 5,195,501 5,020,562 4,729,668 Net OPEB Liability - Ending (a)-(b) 34,621,448 $ 28,061,581 $ 22,372,383 $ 29,380,998 $ 22,544,545 $ 18,345,675 $ Plan Fiduciary Net Position as a Percentage of
the Total OPEB Liability 14.98% 16.97% 22.84% 15.03% 18.21% 20.50% Covered - Employee Payroll 41,390,955 $ 37,293,730 $ 32,857,278 $ 28,448,165 $ 27,686,736 $ 26,037,530 $ Net OPEB Liability as Percentage of Covered -
Employee Payroll 83.64% 75.20% 68.09% 103.28% 81.43% 70.46% Notes to Schedule:
Benefit Changes:
There w ere no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2023 to June 30, 2024,
the discount rate w as changed from 5.70% to 5.06%
* Fiscal year 2018 w as the first year of implementation; additional years will be presented as information is available. 381
City of Murrieta
Schedule of Contributions - OPEB
Last Ten Fiscal Years
-89-
6/30/2024 6/30/2023 ` 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Actuarially Determined Contribution 3,805,686 $ 3,277,322 $ 3,019,917 $ 3,043,480 $ 2,953,121 $ 2,396,299 $ Contributions in Relation to the Actuarially
Determined Contributions (2,063,847) (2,005,185) (1,859,804) (1,620,531) (1,407,397) (1,429,954) Contribution Deficiency (Excess) 1,741,839 $ 1,272,137 $ 1,160,113 $ 1,422,949 $ 1,545,724 $ 966,345 $ Covered - Employee Payroll 42,549,902 $ 41,390,955 $ 37,293,730 $ 32,857,278 $ 28,448,165 $ 27,686,736 $ Contributions as a Percentage of Covered -
Employee Payroll 4.85% 4.84% 4.99% 4.93% 4.95% 5.16%
Assumptions and Methods:
Actuarial cost method: Entry-age normal, level percent of pay Amortization method: Closed period, level dollar
Amortization period: 20 years
Inflation: 2.30%
Assumed payroll growth: N/A
Healthcare trend rates: 7.40%, trending down to 4.14%
Rate of return on assets: 5.10%
Mortality rate: CalPERS Rates
Retirement rates: CalPERS Rates
* Fiscal year 2018 w as the first year of implementation; additional years w ill be presented as information is available. 382
City of Murrieta
Budgetary Comparison Schedule – General Fund
For the Year Ended June 30, 2024
-90-
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes 87,595,800 $ 81,979,140 $ 84,167,091 $ 2,187,951 $ Licenses and Permits 2,920,075 3,056,075 3,110,691 54,616 Intergovernmental 3,654,022 3,977,620 4,462,108 484,488 Charges for Services 4,750,960 4,420,120 4,620,841 200,721 Use of Money and Property 543,680 2,102,880 8,938,220 6,835,340 Fines and Forfeitures 391,750 479,750 345,917 (133,833) Miscellaneous 150,400 232,466 398,291 165,825 Total Revenues 100,006,687 96,248,051 106,043,159 9,795,108
EXPENDITURES
Current:
General Government:
City Council 183,944 182,174 185,922 (3,748) City Attorney 180,000 221,600 272,698 (51,098) General Administration 2,578,765 3,126,046 2,551,646 574,400 Animal Control 433,830 433,830 485,730 (51,900) Emergency Services - - 4,828 (4,828) Administrative Services 833,567 839,166 784,362 54,804 Human Resources 1,619,995 1,710,861 1,682,983 27,878 City Clerk 1,481,626 1,480,651 1,551,522 (70,871) Finance 3,187,645 3,313,785 3,026,187 287,598 Nondepartmental 2,683,274 4,043,615 3,071,739 971,876 Subtotal General Government 13,182,646 15,351,728 13,617,617 1,734,111 Public Safety:
Police Administration 4,073,064 4,143,257 3,836,033 307,224 Police Operations 19,814,186 20,903,582 20,611,661 291,921 Police Support 15,141,576 15,989,912 15,140,157 849,755 Police Communications 6,204,054 6,203,992 5,346,309 857,683 Fire Administration 915,589 979,028 516,878 462,150 Fire Operations 3,909,841 4,179,397 3,926,316 253,081 Subtotal Public Safety 50,058,310 52,399,168 49,377,354 3,021,814 Community Development:
Economic Development 1,214,885 1,175,164 955,655 219,509 Planning 4,107,636 4,454,726 2,906,741 1,547,985 Building and Safety 2,770,268 2,741,032 2,528,384 212,648 Code Enforcement 1,394,329 1,484,482 1,376,914 107,568 Subtotal Community Development 9,487,118 9,855,404 7,767,694 2,087,710 Parks and Recreation 2,227,795 2,210,277 1,515,713 694,564 Public Works:
Public Works Nondepartmental - 3,113 3,113 - Engineering 4,472,148 4,695,451 4,084,611 610,840 Maintenance 1,365,832 1,004,499 767,396 237,103 Street Lights 181,000 181,000 107,748 73,252 Facilities Maintenance 1,574,410 1,670,120 1,524,219 145,901 Subtotal Public Works 7,593,390 7,554,183 6,487,087 1,067,096 Capital Outlay 2,086,785 4,028,566 3,851,966 176,600 Debt Service:
Principal - - 831,373 (831,373) Interest 11,596 46,736 84,328 (37,592) Subtotal Debt Service 11,596 46,736 915,701 (868,965) Total Expenditures 84,647,640 91,446,062 83,533,132 7,912,930 Excess of Revenues Over Expenditures 15,359,047 4,801,989 22,510,027 17,708,038
OTHER FINA NCING SOURCES (USES)
Transfers In - 504,108 506,692 2,584 Transfers Out (11,120,203) (11,120,203) (6,915,769) 4,204,434 Proceeds from Sale of Capital Assets - 107,844 39,831 (68,013) Total Other Financing Sources (Uses) (11,120,203) (10,508,251) (6,369,246) 4,139,005 NET CHANGE IN FUND BALANCES 4,238,844 (5,706,262) 16,140,781 21,847,043 Fund Balances, beginning of year, as restated 126,788,524 126,788,524 126,788,524 - Fund Balances, end of year 131,027,368$ 121,082,262 $ 142,929,305 $ 21,847,043 $ Budgeted Amounts
383
City of Murrieta
Budgetary Comparison Schedule – Fire District Special Revenue Fund For the Year Ended June 30, 2024
-91-
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes 14,043,949 $ 14,562,805 $ 16,391,638 $ 1,828,833 $ Assessments 1,577,711 1,577,711 1,548,599 (29,112) Licenses and permits 10,500 10,500 14,421 3,921 Intergovernmental 715,000 1,007,000 1,004,761 (2,239) Charges for Services 504,426 642,730 678,176 35,446 Use of Money and Property 182,764 152,764 289,328 136,564 Fines and Forfeitures 30,000 250,000 166,260 (83,740) Miscellaneous 23,771 79,525 139,062 59,537 Total Revenues 17,088,121 18,283,035 20,232,245 1,949,210
EXPENDITURES
Current:
Public Safety 24,048,630 25,525,014 23,201,737 2,323,277 Total Expenditures 24,048,630 25,525,014 23,275,624 2,249,390
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (6,960,509) (7,241,979) (3,043,379) 4,198,600
OTHER FINANCING USES
Transfers In 6,960,509 7,131,187 3,954,583 (3,176,604) Proceeds from Sale of Capital Assets - - 6,800 6,800 Total Other Financing Uses 6,960,509 7,131,187 3,961,383 (3,169,804) NET CHANGE IN FUND BALANCES - (110,792) 918,004 1,028,796 Fund Balances, beginning of year 3,722,345 3,722,345 3,722,345 - Fund Balances, end of year 3,722,345$ 3,611,553 $ 4,640,349 $ 1,028,796 $ Budgeted Amounts
384
City of Murrieta
Budgetary Comparison Schedule – Federal Grants Special Revenue Fund For the Year Ended June 30, 2024
-92-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental - $ 3,873,085$ 3,130,440 $ (742,645) $ Use of Money and Property - 77,010 358,489 281,479 Total Revenues - 3,950,095 3,488,929 (461,166)
EXPENDITURES
Current:
General Government 21,912 2,161,122 2,148,261 12,861 Public Safety 465,185 546,515 469,930 76,585 Parks and Recreation - 633,275 182,119 451,156 Capital Outlay - 2,785,859 155,243 2,630,616 Total Expenditures 487,097 6,126,771 2,955,553 3,171,218
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (487,097) (2,176,676) 533,376 2,710,052
OTHER FINANCING USES
Transfers Out - (504,108) (506,665) (2,557) Total Other Financing Uses - (504,108) (506,665) (2,557) NET CHANGE IN FUND BALANCES (487,097) (2,680,784) 26,711 2,707,495 Fund Balances, beginning of year (233,072) (233,072) (233,072) - Fund Balances, end of year (720,169)$ (2,913,856)$ (206,361) $ 2,707,495 $ Budgeted Amounts
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City of Murrieta
Notes to Required Supplementary Information
For the Year Ended June 30, 2024
-93-
NOTE 1 BUDGETARY DATA
General Budget Policies
The City Council approves the bi-annual budget submitted by the City Manager prior to the beginning of the new fiscal year. A workshop and public meetings are held prior to its adoption by Council. Supplemental appropriations, where required during the period, are also approved by the Council. There were several supplemental appropriations required during the year. At fiscal year-end, all operating budget appropriations lapse.
Expenditures are monitored at the departmental level for the general fund and the fund level for all other funds with a legally adopted budget. These levels are considered the legal level of control.
Department heads are authorized to transfer budgeted amounts within their departments, within the same fund, with the approval of the City Manager. Transfers of appropriations between departments may be made only by authority of the City Manager. Transfers of appropriations between funds may be made only by authority of the City Council. Formal budgetary integration is employed as a management control device during the fiscal year for all governmental funds.
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except for certain special revenue and capital projects funds, which adopt project-length budgets.
A budgetary comparison schedule is not presented for the 2022A LARB debt service fund as no legal budget was adopted for that fund.
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 outstanding at year-end are reported as a committed fund balance. They 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.
The Developer Agreement, Development Impact Fee, Other Grants, Reimbursement Agreement, TUMF, Federal Grants, Road Maintenance, and Rehabilitation Account Special Revenue funds and the Area Drainage Capital Projects Fund are appropriated on a project length capital improvement budget process.
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388
SUPPLEMENTARY INFORMATION
389
City of Murrieta
Consolidating Schedule of Balance Sheet by Sub Fund – General Fund June 30, 2024
-94-
General Measure T Capital Traffic Safety
ASSETS
Pooled Cash and Investments 60,637,853 $ 54,075,094 $ 8,232,765 $ 116,666 $ Receivables:
Accounts 608,996 - - - Taxes 11,555,024 4,820,649 - - Loans 3,046,911 130,317 - - Accrued Interest 1,786,082 - - - Prepaid Costs and Other Assets 289,536 42,216 - - Inventories 38,413 4,486 - - Due from Other Governments 1,697,594 - - - Due from Other Funds 2,645,342 - - - Advance to Other Funds 197,149 - - - Restricted Assets:
Cash and Investments with Fiscal Agents 61,684 - - - Total Assets 82,564,584 $ 59,072,762 $ 8,232,765 $ 116,666 $
LIABILITIES
Accounts Payable 1,946,322 $ 72,537 $ 263 $ 6 $ Accrued Liabilities 2,777,344 909,191 - - Deposits Payable 787,522 - 2,726 - Unearned Revenue 200,000 - - - Due to Other Governments 701 - - - Due to other Funds - - - - Total Liabilities 5,711,889 981,728 2,989 6
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues:
Accounts 1,444,805 - - - Total Deferred Inflows of Resources 1,444,805 - - -
FUND BALANCES (DEFICITS)
Nonspendable 3,563,336 177,019 - - Restricted 137,371 - - - Committed 37,171,282 43,440,175 4,385,256 116,662 Assigned 52,482 - - - Unassigned 34,483,419 14,473,840 3,844,520 (2) Total Fund Balances (Deficits) 75,407,890 58,091,034 8,229,776 116,660 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) 82,564,584$ 59,072,762 $ 8,232,765 $ 116,666 $
390
City of Murrieta
Consolidating Schedule of Balance Sheet by Sub Fund – General Fund (Continued) June 30, 2024
-95-
Crime
Prevention
Vehicle
Replacement Deposits Elimination Total
-$ 1,127,532$ 8,069,520 $ - $ 132,259,430$ 117,020 - 610,453 - 1,336,469 - - - - 16,375,673 - - - - 3,177,228 - - - - 1,786,082 222 - - - 331,974 2,000 - - - 44,899 - - - - 1,697,594 - - - (99,392) 2,545,950 - - - - 197,149 - - - - 61,684 119,242$ 1,127,532 $ 8,679,973 $ (99,392) $ 159,814,132$ 1,401$ 35 $ 9,700$ - $ 2,030,264$ 3,131 - - - 3,689,666 - - 8,670,273 - 9,460,521 - - - - 200,000 - - - - 701 99,392 - - (99,392) - 103,924 35 8,679,973 (99,392) 15,381,152 58,870 - - - 1,503,675 58,870 - - - 1,503,675 2,222 - - - 3,742,577 - - - - 137,371 - 1,086,815 - - 86,200,190 - - - - 52,482 (45,774) 40,682 - - 52,796,685 (43,552) 1,127,497 - - 142,929,305 119,242$ 1,127,532 $ 8,679,973 $ (99,392) $ 159,814,132$
391
City of Murrieta
Consolidating Schedule of Revenues, Expenditures, and
Changes in Fund Balance by Sub Fund – General Fund
For the Year Ended June 30, 2024
-96-
General Measure T Capital Traffic Safety
REVENUES
Taxes 55,940,539 $ 28,226,552 $ - $ - $ Licenses and Permits 3,110,691 - - - Intergovernmental 4,462,108 - - - Charges for Services 4,620,841 - - - Use of Money and Property 8,892,586 - - 4,422 Fines and Forfeitures 275,752 - - 12,216 Miscellaneous 328,900 - 69,091 - Total Revenues 77,631,417 28,226,552 69,091 16,638
EXPENDITURES
Current:
General Government 12,803,024 814,063 - - Public Safety 37,968,433 11,293,101 - 18,672 Community Development 7,151,551 616,143 - - Parks and Recreation 1,112,214 403,499 - - Public Works 5,839,210 647,877 - - Capital Outlay 819,001 2,813,498 219,467 - Debt Service:
Principal Retirement 114,151 717,222 - - Interest and Fiscal Charges 7,521 76,807 - - Total Expenditures 65,815,105 17,382,210 219,467 18,672
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 11,816,312 10,844,342 (150,376) (2,034)
OTHER FINANCING SOURCES (USES)
Transfers In 2,584 239,040 265,068 - Transfers Out (965,374) (5,950,395) - - Sale of Capital Assets 39,831 - - - Total Other Financing Sources (Uses) (922,959) (5,711,355) 265,068 - NET CHA NGE IN FUND BALA NCES 10,893,353 5,132,987 114,692 (2,034) Fund Balances, beginning of year 64,893,194 52,958,047 8,115,084 118,694 Prior period restatement (378,657) - - - Fund Balances, beginning of year, as restated (Note xx) 64,514,537 52,958,047 8,115,084 118,694 Fund Balances, end of year 75,407,890 $ 58,091,034 $ 8,229,776 $ 116,660 $
392
City of Murrieta
Consolidating Schedule of Revenues, Expenditures, and
Changes in Balances by Sub Fund – General Fund (Continued) For the Year Ended June 30, 2024
-97-
Crime
Prevention
Vehicle
Replacement Deposits Elimination Total
-$ - $ - $ - $ 84,167,091$ - - - - 3,110,691 - - - - 4,462,108 - - - - 4,620,841 - 41,212 - - 8,938,220 57,949 - - - 345,917 300 - - - 398,291 58,249 41,212 - - 106,043,159 - 530 - - 13,617,617 97,148 - - - 49,377,354 - - - - 7,767,694 - - - - 1,515,713 - - - - 6,487,087 - - - - 3,851,966 - - - - 831,373 - - - - 84,328 97,148 530 - - 83,533,132 (38,899) 40,682 - - 22,510,027 - - - - 506,692 - - - - (6,915,769) - - - - 39,831 - - - - (6,369,246) (38,899) 40,682 - - 16,140,781 (4,653) 1,086,815 - - 127,167,181 - - - - (378,657) (4,653) 1,086,815 - - 126,788,524 (43,552)$ 1,127,497 $ - $ - $ 142,929,305$
393
THIS PAGE INTENTIONALLY LEFT BLANK
394
NONMAJOR GOVERNMENTAL FUNDS
395
City of Murrieta
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2024
-98-
State Gas Tax Measure A
Air Quality
Management
District Block Grants
ASSET S
Pooled Cash and Investments 11,018,146 $ 13,510,819 $ 968,604 $ - $ Receivables:
Accounts - 3,715 504 12,146 Taxes 261,900 - - - Loans - - - - Accrued Interest - - - - Leases - - - - Prepaid Costs - - - - Inventory 22,143 - - - Due from Other Governments - 641,436 37,007 120,671 Land Held for Resale - - - - Restricted Assets:
Cash and Investments with Fiscal Agents - - - - Total Assets 11,302,189 $ 14,155,970 $ 1,006,115 $ 132,817 $
LIABILITIES
Accounts Payable 207,101 $ 29,236 $ 25 $ 1,340$ Accrued Liabilities 255,940 12,480 - - Deposits Payable - - - - Unearned Revenue - - - - Due to Other Funds - - - 212,896 Total Liabilities 463,041 41,716 25 214,236
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues:
Accounts - 330,401 37,007 64,715 Deferred Inflows Related to Leases - - - - Total Deferred Inflows of Resources - 330,401 37,007 64,715
FUND BA LA NCES (DEFICITS)
Nonspendable 22,143 - - - Restricted 10,817,005 13,783,853 969,083 - Unassigned - - - (146,134) Total Fund Balances (Deficits) 10,839,148 13,783,853 969,083 (146,134) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) 11,302,189$ 14,155,970 $ 1,006,115 $ 132,817 $ Special Revenue Funds
396
City of Murrieta
Combining Balance Sheet – Nonmajor Governmental Funds (Continued) June 30, 2024
-99-
Seized Assets
Forfeitures SLESF
Murrieta Public
Library NPDES
Reimbursement
Agreement
Fund TUMF
765,557$ 155,837 $ 1,448,140 $ 883,007 $ 22,033 $ 1,269,149$ - - 5,831 - - 790 - - 92,346 - - - - - - - - - - - - - - - - - - - - - - 426 4,228 - - - - - - - - - - - - 437,464 - - - - - - - - - - - - - - 765,557$ 156,263 $ 1,550,545 $ 1,320,471 $ 22,033 $ 1,269,939$ 4$ 6 $ 152,294$ 26,843 $ 18,848 $ 433,905 $ 777 61,991 131,334 10,983 992 - 137 - 1,400 - - - - - - - - - 251,633 - - - - - 252,551 61,997 285,028 37,826 19,840 433,905
- - - - - - - - - - - - - - - - - - - 426 4,228 - - - 513,006 93,840 1,261,289 1,282,645 2,193 836,034 - - - - - - 513,006 94,266 1,265,517 1,282,645 2,193 836,034 765,557$ 156,263 $ 1,550,545 $ 1,320,471 $ 22,033 $ 1,269,939$ Special Revenue Funds
397
City of Murrieta
Combining Balance Sheet – Nonmajor Governmental Funds (Continued) June 30, 2024
-100-
Housing
Authority
Community
Services District
Road
Maintenance and
Rehabilitation
Account Other Grants
ASSET S
Pooled Cash and Investments 3,011,701 $ 7,971,334 $ 6,857,623 $ 1,379,531 $ Receivables:
Accounts 52,166 16,407 1,760 - Taxes - 84,986 - - Loans 8,931,906 - - - Accrued Interest 683,908 - - - Leases - 604,525 - - Prepaid Costs 169 4,369 - - Inventory - - - - Due from Other Governments - - 497,875 601,450 Land Held for Resale 3,515,665 - - - Restricted Assets:
Cash and Investments with Fiscal Agents - - - - Total Assets 16,195,515 $ 8,681,621 $ 7,357,258 $ 1,980,981 $
LIABILITIES
Accounts Payable 978 $ 779,288$ 972,064 $ 89,055 $ Accrued Liabilities - 227,469 76,083 8,241 Deposits Payable - 52,561 - - Unearned Revenue - - - 1,164,869 Due to Other Funds - - - 559,439 Total Liabilities 978 1,059,318 1,048,147 1,821,604
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues:
Accounts 847,054 7,607 1,760 527,205 Deferred Inflows Related to Leases - 563,958 - - Total Deferred Inflows of Resources 847,054 571,565 1,760 527,205
FUND BALANCES (DEFICITS)
Nonspendable 169 4,369 - - Restricted 15,347,314 7,046,369 6,307,351 - Unassigned - - - (367,828) Total Fund Balances (Deficits) 15,347,483 7,050,738 6,307,351 (367,828) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) 16,195,515$ 8,681,621 $ 7,357,258 $ 1,980,981 $ Special Revenue Funds
398
City of Murrieta
Combining Balance Sheet – Nonmajor Governmental Funds (Continued) June 30, 2024
-101-
Developer
Agreement
Opioid
Settlement
Community
Facilities
District Area Drainage
South West
Road
and Bridge
4,581,001$ - $ - $ 6,074,247$ 277,494 $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 757,290 - - - - - - - 1,709,179 - - 4,581,001$ - $ 1,709,179$ 6,074,247 $ 1,034,784 $ 138$ - $ 2,313 $ 184 $ 7 $ 2,015 - - - - 2,330,837 - - - - - - - - - - 3,275 959,449 - - 2,332,990 3,275 961,762 184 7 - - - - 757,290 - - - - - - - - - 757,290 - - - - - 2,248,011 - 747,417 6,074,063 277,487 - (3,275) - - - 2,248,011 (3,275) 747,417 6,074,063 277,487 4,581,001$ - $ 1,709,179$ 6,074,247 $ 1,034,784 $ Capital Projects FundsSpecial Revenue Funds
399
City of Murrieta
Combining Balance Sheet – Nonmajor Governmental Funds (Continued) June 30, 2024
-102-
Citywide Debt
Service 2016A LARB 2016B LARB 2022A LARB
ASSETS
Pooled Cash and Investments 5,232 $ 75,459 $ 14,296 $ 81,971 $ Receivables:
Accounts - - - - Taxes - - - - Loans - - - - Accrued Interest - - - - Leases - - - - Prepaid Costs - - - - Inventory - - - - Due from Other Governments - - - - Land Held for Resale - - - - Restricted Assets:
Cash and Investments with Fiscal Agents 5,264 1,907,734 334,230 1,514,847 Total Assets 10,496 $ 1,983,193$ 348,526 $ 1,596,818 $
LIABILITIES
Accounts Payable - $ - $ - $ - $ Accrued Liabilities - - - - Deposits Payable - - - - Unearned Revenue - - - - Due to Other Funds - - - - Total Liabilities - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues:
Accounts - - - - Deferred Inflows Related to Leases - - - - Total Deferred Inflows of Resources - - - -
FUND BA LA NCES (DEFICITS)
Nonspendable - - - - Restricted 10,496 1,983,193 348,526 1,596,818 Unassigned - - - - Total Fund Balances (Deficits) 10,496 1,983,193 348,526 1,596,818 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) 10,496$ 1,983,193$ 348,526 $ 1,596,818 $ Debt Service
400
City of Murrieta
Combining Balance Sheet – Nonmajor Governmental Funds (Concluded) June 30, 2024
-103-
Permanent
Town Hall
Association
Total Other
Governmental
Funds
517,027$ 60,888,208$
- 93,319
- 439,232
- 8,931,906
- 683,908
- 604,525
- 9,192
- 22,143
- 3,093,193
- 3,515,665
- 5,471,254
517,027$ 83,752,545$
16$ 2,713,645$
- 788,305
- 2,384,935
- 1,164,869
- 1,986,692
16 9,038,446
- 2,573,039
- 563,958
- 3,136,997
500,000 531,335
17,011 71,563,004
- (517,237)
517,011 71,577,102
517,027$ 83,752,545$
401
City of Murrieta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds
For the Year Ended June 30, 2024
-104-
Special Revenue Funds
State Gas Tax Measure A
Air Quality
Management
District Block Grants
REVENUES
Taxes - $ - $ - $ - $ Assessments - - - - Intergovernmental 3,032,423 3,588,810 148,034 772,299 Charges for Services - - - - Use of Money and Property 409,659 460,011 29,461 11 Fines and Forfeitures - - - - Developer Participation - - - - Miscellaneous - - - 4,286 Total Revenues 3,442,082 4,048,821 177,495 776,596
EXPENDITURES
Current:
General Government - - - 787,265 Public Safety - - - - Community Development - - - - Parks and Recreation - - - - Public Works 2,627,847 5,158 338 - Capital Outlay 459,711 769,641 - - Debt Service:
Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 3,087,558 774,799 338 787,265
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 354,524 3,274,022 177,157 (10,669)
OTHER FINA NCING SOURCES (USES)
Transfers In - - - - Transfers Out - (724,736) - - Total Other Financing Sources (Uses) - (724,736) - - NET CHANGE IN FUND BALANCES 354,524 2,549,286 177,157 (10,669) Fund Balances (Deficits), beginning of year,
previously reported 10,484,624 11,234,567 791,926 (135,465) Adjustment - change from major to nonmajor fund - - - - Adjustment - correction of error - - - - Fund Balances (Deficits), beginning of year, as
restated (Note 19) 10,484,624 11,234,567 791,926 (135,465) Fund Balances (Deficits), end of year 10,839,148 $ 13,783,853 $ 969,083 $ (146,134) $ 402
City of Murrieta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds (Continued)
For the Year Ended June 30, 2024
-105-
Special Revenue Funds
Seized Assets
Forfeitures SLESF
Murrieta Public
Library NPDES
Reimbursement
Agreement
Fund TUMF
-$ - $ 2,847,305$ - $ - $ - $ - - - 822,466 - - 1,569 318,979 - - 21,890 2,250,000 - - 22,497 - - - 29,655 5,918 80,199 45,870 143 - - - 14,231 - - - - - - - 19,450 - 7,067 - 42,707 - - - 38,291 324,897 3,006,939 868,336 41,483 2,250,000 61,098 2,113 - - - - 81,880 361,951 - - - - - - - - - - - - 3,130,341 - - - - - - 883,009 - - 212,992 7,389 - - 19,840 1,032,703 162,288 - - - - - 4,528 - - - - - 522,786 371,453 3,130,341 883,009 19,840 1,032,703 (484,495) (46,556) (123,402) (14,673) 21,643 1,217,297 - - 783 300,000 - - - - - - - - - - 783 300,000 - - (484,495) (46,556) (122,619) 285,327 21,643 1,217,297 997,501 140,822 1,388,136 997,318 (19,450) (381,263) - - - - - - - - - - - - 997,501 140,822 1,388,136 997,318 (19,450) (381,263) 513,006$ 94,266 $ 1,265,517$ 1,282,645 $ 2,193 $ 836,034$ 403
City of Murrieta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds (Continued)
For the Year Ended June 30, 2024
-106-
Housing
Authority
Community
Services District
Road
Maintenance and
Rehabilitation
Account Other Grants
REVENUES
Taxes - $ - $ - $ - $ Assessments - 9,696,227 - - Intergovernmental - - 2,856,782 465,957 Charges for Services - 687,196 - - Use of Money and Property 185,699 366,932 214,621 10,119 Fines and Forfeitures - - - - Developer Participation - - - - Miscellaneous 6,500 18,847 - - Total Revenues 192,199 10,769,202 3,071,403 476,076
EXPENDITURES
Current:
General Government 3,359 - - 118,396 Public Safety - - - 363,053 Community Development 31,944 - - - Parks and Recreation - 12,444,907 - 47,543 Public Works - - 2,125 - Capital Outlay - 190,868 1,614,680 143,500 Debt Service:
Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 35,303 12,635,775 1,616,805 672,492
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 156,896 (1,866,573) 1,454,598 (196,416)
OTHER FINANCING SOURCES (USES)
Transfers In - 2,679,944 - - Transfers Out - (425,727) - (810) Total Other Financing Sources (Uses) - 2,254,217 - (810) NET CHANGE IN FUND BA LA NCES 156,896 387,644 1,454,598 (197,226) Fund Balances (Deficits), beginning of year,
previously reported 15,215,222 6,663,094 4,852,753 (170,602) Adjustment - change from major to nonmajor fund - - - - Adjustment - correction of error (24,635) - - - Fund Balances (Deficits), beginning of year, as
restated (Note 19) 15,190,587 6,663,094 4,852,753 (170,602) Fund Balances (Deficits), end of year 15,347,483 $ 7,050,738 $ 6,307,351 $ (367,828) $ Special Revenue Funds
404
City of Murrieta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds (Continued)
For the Year Ended June 30, 2024
-107-
Developer
Agreement
Opioid
Settlement
Community
Facilities
District Area Drainage
South West
Road
and Bridge
-$ - $ - $ - $ - $ - - - - - - - - - - - - - - - 167,684 5,205 77,541 220,963 10,141 - - - - - - - - 61,462 - - 151,439 - - - 167,684 156,644 77,541 282,425 10,141 - 166,500 - - - - - - - - - - - - - - - - - - 2,039 - - 2,863 107 3,875 - 951,214 52,654 - - - - - - - - - - - 5,914 166,500 951,214 55,517 107 161,770 (9,856) (873,673) 226,908 10,034 - - - - - - - - - - - - - - - 161,770 (9,856) (873,673) 226,908 10,034 2,086,241 6,581 1,621,090 5,847,155 267,453 - - - - - - - - - - 2,086,241 6,581 1,621,090 5,847,155 267,453 2,248,011$ (3,275) $ 747,417 $ 6,074,063 $ 277,487 $ Capital Projects FundsSpecial Revenue Funds
405
City of Murrieta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds
For the Year Ended June 30, 2024
-108-
Citywide Debt
Service
2016A LARB
(formerly major) 2016B LARB 2022A LARB
REVENUES
Taxes - $ - $ - $ - $ Assessments - 3,615,258 630,088 3,495,300 Intergovernmental - - - - Charges for Services - - - - Use of Money and Property - 99,613 18,528 87,072 Fines and Forfeitures - - - - Developer Participation - - - - Miscellaneous - (3) 4 51 Total Revenues - 3,714,868 648,620 3,582,423
EXPENDITURES
Current:
General Government 7 - - - Public Safety - - - - Community Development - - - - Parks and Recreation - - - - Public Works - - - - Capital Outlay - - - - Debt Service:
Principal Retirement 1,030,000 2,390,000 430,000 2,190,000 Interest and Fiscal Charges 272,376 1,225,258 200,088 1,305,300 Total Expenditures 1,302,383 3,615,258 630,088 3,495,300
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,302,383) 99,610 18,532 87,123
OTHER FINANCING SOURCES (USES)
Transfers In 1,302,383 - - - Transfers Out - - - - Total Other Financing Sources (Uses) 1,302,383 - - - NET CHA NGE IN FUND BA LA NCES - 99,610 18,532 87,123 Fund Balances (Deficits), beginning of year,
previously reported 10,496 - 329,994 1,509,695 Adjustment - change from major to nonmajor fund - 1,883,583 - - Adjustment - correction of error - - - - Fund Balances (Deficits), beginning of year, as
restated (Note 19) 10,496 1,883,583 329,994 1,509,695 Fund Balances (Deficits), end of year 10,496 $ 1,983,193$ 348,526 $ 1,596,818 $ Debt Service Funds
406
City of Murrieta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds (Concluded)
For the Year Ended June 30, 2024
-109-
Permanent
Town Hall
Association
Total Other
Governmental
Funds
-$ 2,847,305$
- 18,259,339
- 13,456,743
- 709,693
19,149 2,544,194
- 14,231
- 80,912
- 230,898
19,149 38,143,315
- 1,138,738
- 806,884
- 31,944
11,868 15,634,659
- 3,523,486
- 5,459,067
- 6,202,288
- 3,007,550
11,868 35,804,616
7,281 2,338,699
- 4,283,110
- (1,151,273)
- 3,131,837
7,281 5,470,536
509,730 64,247,618
- 1,883,583
- (24,635)
509,730 66,106,566
517,011$ 71,577,102$
407
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
State Gas Tax
For the Year Ended June 30, 2024
-110-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental 4,049,700 $ 3,003,380 $ 3,032,423 $ 29,043 $ Use of Money and Property 70,000 130,000 409,659 279,659 Total Revenues 4,119,700 3,133,380 3,442,082 308,702
EXPENDITURES
Current:
Public Works 2,731,122 2,843,509 2,627,847 215,662 Capital Outlay - 401,923 459,711 (57,788) Total Expenditures 2,731,122 3,245,432 3,087,558 157,874 NET CHANGE IN FUND BALANCE 1,388,578 (112,052) 354,524 466,576 Fund Balance, beginning of year 10,484,624 10,484,624 10,484,624 - Fund Balance, end of year 11,873,202 $ 10,372,572 $ 10,839,148 $ 466,576 $ Budgeted Amounts
408
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Measure A
For the Year Ended June 30, 2024
-111-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental 2,635,000 $ 3,553,700 $ 3,588,810 $ 35,110 $ Use of Money and Property 10,000 80,000 460,011 380,011 Total Revenues 2,645,000 3,633,700 4,048,821 415,121
EXPENDITURES
Current:
Public Works 41,300 74,974 5,158 69,816 Capital Outlay - 148,164 769,641 (621,477) Total Expenditures 41,300 223,138 774,799 (551,661)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,603,700 3,410,562 3,274,022 (136,540)
OTHER FINANCING SOURCES (USES)
Transfers out (726,900) (726,900) (724,736) 2,164 NET CHA NGE IN FUND BA LA NCE 1,876,800 2,683,662 2,549,286 (134,376) Fund Balance, beginning of year 11,234,567 11,234,567 11,234,567 - Fund Balance, end of year 13,111,367 $ 13,918,229 $ 13,783,853 $ (134,376) $ Budgeted Amounts
409
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Air Quality Management District
For the Year Ended June 30, 2024
-112-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental 143,000 $ 143,000 $ 148,034 $ 5,034 $ Use of Money and Property 4,000 5,500 29,461 23,961 Total Revenues 147,000 148,500 177,495 28,995
EXPENDITURES
Current:
Public Works 250 284 338 (54) Total Expenditures 250 284 338 (54) NET CHA NGE IN FUND BA LA NCE 146,750 148,216 177,157 28,941 Fund Balance, beginning of year 791,926 791,926 791,926 - Fund Balance, end of year 938,676 $ 940,142 $ 969,083 $ 28,941 $ Budgeted Amounts
410
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Block Grants
For the Year Ended June 30, 2024
-113-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental 590,000 $ 590,000 $ 772,299 $ 182,299 $ Use of Money and Property - 20 11 (9) Miscellaneous - - 4,286 4,286 Total Revenues 590,000 590,020 776,596 186,576
EXPENDITURES
Current:
General Government 104,000 121,413 787,265 (665,852) Total Expenditures 104,000 121,413 787,265 (665,852) NET CHA NGE IN FUND BA LA NCE 486,000 468,607 (10,669) (479,276) Fund Balance (Deficit), beginning of year (135,465) (135,465) (135,465) - Fund Balance (Deficit), end of year 350,535 $ 333,142 $ (146,134) $ (479,276) $ Budgeted Amounts
411
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Seized Assets Forfeitures
For the Year Ended June 30, 2024
-114-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental 8,000 $ 8,000 $ 1,569 $ (6,431) $ Use of Money and Property 1,070 19,570 29,655 10,085 Miscellaneous - - 7,067 7,067 Total Revenues 9,070 27,570 38,291 10,721
EXPENDITURES
Current:
General Government - 61,098 61,098 - Public Safety 4,000 89,104 81,880 7,224 Capital Outlay - 389,138 212,992 176,146 Debt Service:
Principal 5,664 5,664 162,288 (156,624)
Interest 203,000 203,000 4,528 198,472 Total Expenditures 212,664 748,004 522,786 225,218 NET CHA NGE IN FUND BALANCE (203,594) (720,434) (484,495) 235,939 Fund Balance, beginning of year 997,501 997,501 997,501 - Fund Balance, end of year 793,907 $ 277,067 $ 513,006 $ 235,939 $ Budgeted Amounts
412
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Supplemental Law Enforcement Services Fund (SLESF)
For the Year Ended June 30, 2024
-115-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental 280,561 $ 280,561 $ 318,979 $ 38,418 $ Use of Money and Property 1,000 1,000 5,918 4,918 Total Revenues 281,561 281,561 324,897 43,336
EXPENDITURES
Current:
General Government - - 2,113 (2,113) Public Safety 255,315 348,432 361,951 (13,519) Capital Outlay - 53,803 7,389 46,414 Total Expenditures 255,315 402,235 371,453 30,782 NET CHA NGE IN FUND BA LA NCE 26,246 (120,674) (46,556) 74,118 Fund Balance, beginning of year, as restated 140,822 140,822 140,822 - Fund Balance, end of year 167,068 $ 20,148 $ 94,266 $ 74,118 $ Budgeted Amounts
413
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Murrieta Public Library
For the Year Ended June 30, 2024
-116-
Original Final Actual
Variance with
Final Budget
REVENUES
Assessments 2,424,794 $ 2,533,814 $ 2,847,305 $ 313,491 $ Charges for services 14,300 18,750 22,497 3,747 Use of Money and Property 18,600 38,600 80,199 41,599 Fines and Forfeitures 30,000 15,000 14,231 (769) Miscellaneous 46,600 32,100 42,707 10,607 Total Revenues 2,534,294 2,638,264 3,006,939 368,675
EXPENDITURES
Current:
Parks and Recreation 3,313,280 3,296,933 3,130,341 166,592 Total Expenditures 3,313,280 3,296,933 3,130,341 166,592
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (778,986) (658,669) (123,402) 535,267
OTHER FINA NCING SOURCES (USES)
Transfers in 143,773 143,773 783 (142,990) NET CHA NGE IN FUND BA LA NCE (635,213) (514,896) (122,619) 392,277 Fund Balance, beginning of year 1,388,136 1,388,136 1,388,136 - Fund Balance, end of year 752,923 $ 873,240 $ 1,265,517 $ 392,277 $ Budgeted Amounts
414
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
National Pollutant Discharge Elimination System (NPDES) For the Year Ended June 30, 2024
-117-
Original Final Actual
Variance with
Final Budget
REVENUES
Assessments 488,000 $ 488,000 $ 822,466 $ 334,466 $ Use of Money and Property 4,700 14,700 45,870 31,170 Total Revenues 492,700 502,700 868,336 365,636
EXPENDITURES
Current:
Public Works 1,325,129 1,272,183 883,009 389,174 Total Expenditures 1,325,129 1,272,183 883,009 389,174
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (832,429) (769,483) (14,673) 754,810
OTHER FINA NCING SOURCES (USES)
Transfers In 300,000 300,000 300,000 - NET CHA NGE IN FUND BA LA NCES (532,429) (469,483) 285,327 754,810 Fund Balance, beginning of year 997,318 997,318 997,318 - Fund Balance, end of year 464,889 $ 527,835 $ 1,282,645 $ 754,810 $ Budgeted Amounts
415
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Reimbursement Agreement Fund
For the Year Ended June 30, 2024
-118-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental - $ 21,890$ 21,890 $ - $ Use of Money and Property - - 143 143 Developer Participation - - 19,450 19,450 Total Revenues - 21,890 41,483 19,593
EXPENDITURES
Capital Outlay - 21,890 19,840 2,050 Total Expenditures - 21,890 19,840 2,050 NET CHANGE IN FUND BALANCE - - 21,643 21,643 Fund Balance (Deficit), beginning of year (19,450) (19,450) (19,450) - Fund Balance (Deficit), end of year (19,450) $ (19,450) $ 2,193 $ 21,643 $ Budgeted Amounts
416
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
TUMF
For the Year Ended June 30, 2024
-119-
Original Final Actual
Variance with
Final Budget
REVENUES
Total Revenues - $ - $ 2,250,000$ 2,250,000 $
EXPENDITURES
Capital Outlay - 1,834,205 1,032,703 801,502 Total Expenditures - 1,834,206 1,032,703 801,503 NET CHANGE IN FUND BALANCE - (1,834,206) 1,217,297 3,051,503 Fund Balance, beginning of year (381,263) (381,263) (381,263) - Fund Balance (Deficit), end of year (381,263) $ (2,215,469)$ 836,034 $ 3,051,503 $ Budgeted Amounts
417
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Housing Authority
For the Year Ended June 30, 2024
-120-
Original Final Actual
Variance with
Final Budget
REVENUES
Use of Money and Property 44,000 $ 74,000 $ 185,699 $ 111,699 $ Miscellaneous 6,500 6,500 6,500 - Total Revenues 50,500 80,500 192,199 111,699
EXPENDITURES
Current:
General Government - - 3,359 (3,359) Community Development 72,289 118,644 31,944 86,700 Total Expenditures 72,289 118,644 35,303 83,341 NET CHA NGE IN FUND BA LA NCE (21,789) (38,144) 156,896 195,040 Fund Balance, beginning of year, as restated 15,190,587 15,190,587 15,190,587 - Fund Balance, end of year 15,168,798 $ 15,152,443 $ 15,347,483 $ 195,040 $ Budgeted Amounts
418
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Community Services District
For the Year Ended June 30, 2024
-121-
Original Final Actual
Variance with
Final Budget
REVENUES
Assessments 9,538,625 $ 9,538,625 $ 9,696,227 $ 157,602 $ Charges for Services 520,125 548,125 687,196 139,071 Use of Money and Property 156,805 194,015 366,932 172,917 Miscellaneous 22,000 22,000 18,847 (3,153) Total Revenues 10,237,555 10,302,765 10,769,202 466,437
EXPENDITURES
Current:
Parks and Recreation 13,457,463 13,671,932 12,444,907 1,227,025 Capital Outlay 18,000 181,506 190,868 (9,362) Total Expenditures 13,475,463 13,853,438 12,635,775 1,217,663
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (3,237,908) (3,550,673) (1,866,573) 1,684,100
OTHER FINANCING SOURCES (USES)
Transfers In 3,564,002 3,564,002 2,679,944 (884,058) Transfers Out (425,727) (425,727) (425,727) - Total Other Financing Sources (Uses) 3,138,275 3,138,275 2,254,217 (884,058) NET CHA NGE IN FUND BA LA NCE (99,633) (412,398) 387,644 800,042 Fund Balances, beginning of year 6,663,094 6,663,094 6,663,094 - Fund Balances, end of year 6,563,461 $ 6,250,696 $ 7,050,738 $ 800,042 $ Budgeted Amounts
419
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Road Maintenance and Rehabilitation Account
For the Year Ended June 30, 2024
-122-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental 2,107,697 $ 2,650,389 $ 2,856,782 $ 206,393 $ Use of Money and Property - 35,000 214,621 179,621 Total Revenues 2,107,697 2,685,389 3,071,403 386,014
EXPENDITURES
Current:
Public Works - 1,260 2,125 (865) Capital Outlay - 12,446 1,614,680 (1,602,234) Total Expenditures - 13,706 1,616,805 (1,603,099) NET CHANGE IN FUND BALANCE 2,107,697 2,671,683 1,454,598 (1,217,085) Fund Balance, beginning of year 4,852,753 4,852,753 4,852,753 - Fund Balance, end of year 6,960,450 $ 7,524,436 $ 6,307,351 $ (1,217,085) $ Budgeted Amounts
420
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Other Grants
For the Year Ended June 30, 2024
-123-
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental 29,840 $ 4,354,293$ 465,957 $ (3,888,336)$ Use of Money and Property 22,650 23,410 10,119 (13,291) Total Revenues 52,490 4,377,703 476,076 (3,901,627)
EXPENDITURES
Current:
General Government 113,592 459,695 118,396 341,299 Public Safety 30 512,912 363,053 149,859 Public Works - 3,000,000 - 3,000,000 Parks and Recreation 25,050 144,419 47,543 96,876 Capital Outlay - 180,818 143,500 37,318 Total Expenditures 138,672 4,297,844 672,492 3,625,352
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (86,182) 79,859 (196,416) (276,275)
OTHER FINA NCING SOURCES (USES)
Transfers Out - - (810) (810) NET CHA NGE IN FUND BA LA NCE (86,182) 79,859 (197,226) (277,085) Fund Balance (Deficit), beginning of year (170,602) (170,602) (170,602) - Fund Balance (Deficit), end of year (256,784) $ (90,743) $ (367,828) $ (277,085) $ Budgeted Amounts
421
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Developer Agreement
For the Year Ended June 30, 2024
-124-
Original Final Actual
Variance with
Final Budget
REVENUES
Use of Money and Property 27,000 $ 33,000 $ 167,684 $ 134,684 $ Total Revenues 27,000 33,000 167,684 134,684
EXPENDITURES
Current:
Public Works 2,250 2,480 2,039 441 Capital Outlay - - 3,875 (3,875) Total Expenditures 2,250 2,480 5,914 (3,434) NET CHA NGE IN FUND BA LA NCE 24,750 30,520 161,770 131,250 Fund Balance, beginning of year 2,086,241 2,086,241 2,086,241 - Fund Balance, end of year 2,110,991 $ 2,116,761 $ 2,248,011 $ 131,250 $ Budgeted Amounts
422
City of Murrieta
Budgetary Comparison Schedule – Special Revenue Fund –
Opioid Settlement
For the Year Ended June 30, 2024
-125-
Original Final Actual
Variance with
Final Budget
REVENUES
Use of Money and Property - $ 2,500 $ 5,205 $ 2,705 $ Miscellaneous - 47,772 151,439 103,667 Total Revenues - 50,272 156,644 106,372
EXPENDITURES
Current:
General Government - 166,500 166,500 - Total Expenditures - 166,500 166,500 - NET CHA NGE IN FUND BA LA NCE - (116,228) (9,856) 106,372 Fund Balances, beginning of year 6,581 6,581 6,581 - Fund Balances, end of year 6,581 $ (109,647)$ (3,275) $ 106,372 $ Budgeted Amounts
423
City of Murrieta
Budgetary Comparison Schedule – Capital Projects Fund – Community Facilities District
For the Year Ended June 30, 2024
-126-
Original Final Actual
Variance with
Final Budget
REVENUES
Use of Money and Property 2,500 $ 33,630 $ 77,541 $ 43,911 $ Total Revenues 2,500 33,630 77,541 43,911
EXPENDITURES
Capital Outlay - 990,255 951,214 39,041 Total Expenditures - 990,255 951,214 39,041 NET CHANGE IN FUND BALANCE 2,500 (956,625) (873,673) 82,952 Fund Balance, beginning of year 1,621,090 1,621,090 1,621,090 - Fund Balance, end of year 1,623,590 $ 664,465 $ 747,417 $ 82,952 $ Budgeted Amounts
424
City of Murrieta
Budgetary Comparison Schedule – Capital Projects Fund – Area Drainage
For the Year Ended June 30, 2024
-127-
Original Final Actual
Variance with
Final Budget
REVENUES
Use of Money and Property 60,000 $ 45,000 $ 220,963 $ 175,963 $ Developer Participation 110,000 110,000 61,462 (48,538) Total Revenues 170,000 155,000 282,425 127,425
EXPENDITURES
Current:
Public Works 4,200 4,552 2,863 1,689 Capital Outlay - 24,001 52,654 (28,653) Total Expenditures 4,200 28,553 55,517 (26,964) NET CHANGE IN FUND BALANCE 165,800 126,447 226,908 100,461 Fund Balance, beginning of year 5,847,155 5,847,155 5,847,155 - Fund Balance, end of year 6,012,955 $ 5,973,602 $ 6,074,063 $ 100,461 $ Budgeted Amounts
425
City of Murrieta
Budgetary Comparison Schedule – Capital Projects Fund – South West Road and Bridge
For the Year Ended June 30, 2024
-128-
Original Final Actual
Variance with
Final Budget
REVENUES
Use of Money and Property 1,000 $ 4,500 $ 10,141 $ 5,641 $ Total Revenues 1,000 4,500 10,141 5,641
EXPENDITURES
Current:
Public Works 60 88 107 (19) Total Expenditures 60 88 107 (19) NET CHA NGE IN FUND BA LA NCE 940 4,412 10,034 5,622 Fund Balance, beginning of year 267,453 267,453 267,453 - Fund Balance, end of year 268,393 $ 271,865 $ 277,487 $ 5,622 $ Budgeted Amounts
426
City of Murrieta
Budgetary Comparison Schedule – Debt Service Fund –
Citywide Debt Service
For the Year Ended June 30, 2024
-129-
Original Final Actual
Variance with
Final Budget
REVENUES
Current
Use of Money and Property 50 $ 450 $ - $ (450)$
EXPENDITURES
Current:
General Government - 8 7 1 Debt service:
Principal Retirement 1,030,000 1,030,000 1,030,000 - Interest and Fiscal Charges 274,550 274,550 272,376 2,174 Total Expenditures 1,304,550 1,304,558 1,302,383 2,175
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,304,500) (1,304,108) (1,302,383) 1,725
OTHER FINANCING SOURCES (USES)
Transfers In 1,304,546 1,304,546 1,302,383 (2,163) NET CHA NGE IN FUND BA LA NCE 46 438 - (438) Fund Balance, beginning of year 10,496 10,496 10,496 - Fund Balance, end of year 10,542 $ 10,934 $ 10,496 $ (438) $ Budgeted Amounts
427
City of Murrieta
Budgetary Comparison Schedule – Debt Service Fund –
2016A LARB
For the Year Ended June 30, 2024
-130-
Original Final Actual
Variance with
Final Budget
REVENUES
Assessments - $ 3,615,258$ 3,615,258 $ - $ Use of Money and Property - 85,000 99,613 14,613 M iscellaneous - - (3) (3) Total Revenues - 3,700,258 3,714,868 14,610
EXPENDITURES
Debt Service:
Principal Retirement 2,390,000 2,390,000 2,390,000 - Interest and Fiscal Charges 1,225,258 1,225,258 1,225,258 - Total Expenditures 3,615,258 3,615,258 3,615,258 - NET CHA NGE IN FUND BA LA NCE (3,615,258) 85,000 99,610 14,610 Fund Balances, beginning of year, as restated 1,883,583 1,883,583 1,883,583 - Fund Balances, end of year (1,731,675) $ 1,968,583 $ 1,983,193 $ 14,610 $ Budgeted Amounts
428
City of Murrieta
Budgetary Comparison Schedule – Debt Service Fund –
2016B LARB
For the Year Ended June 30, 2024
-131-
Original Final Actual
Variance with
Final Budget
REVENUES
Assessments - $ 630,088$ 630,088 $ - $ Use of Money and Property - 16,020 18,528 2,508 Miscellaneous - - 4 4 Total Revenues - 646,108 648,620 2,512
EXPENDITURES
Debt Service:
Principal Retirement 430,000 430,000 430,000 - Interest and Fiscal Charges 200,088 200,088 200,088 - Total Expenditures 630,088 630,088 630,088 - NET CHA NGE IN FUND BA LA NCE (630,088) 16,020 18,532 2,512 Fund Balances, beginning of year 329,994 329,994 329,994 - Fund Balances, end of year (300,094) $ 346,014 $ 348,526 $ 2,512 $ Budgeted Amounts
429
City of Murrieta
Budgetary Comparison Schedule – Permanent Fund –
Town Hall Association
For the Year Ended June 30, 2024
-132-
Original Final Actual
Variance with
Final Budget
REVENUES
Use of Money and Property 5,000 $ 7,000 $ 19,149 $ 12,149 $ Total Revenues 5,000 7,000 19,149 12,149
EXPENDITURES
Current:
Parks and recreation 5,000 5,223 11,868 (6,645) Total Expenditures 5,000 5,223 11,868 (6,645) NET CHA NGE IN FUND BA LA NCE - 1,777 7,281 5,504 Fund Balances, beginning of year 509,730 509,730 509,730 - Fund Balances, end of year 509,730 $ 511,507 $ 517,011 $ 5,504 $ Budgeted Amounts
430
INTERNAL SERVICE FUNDS
431
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432
City of Murrieta
Combining Statement of Fund Net Position – Internal Service Funds June 30, 2024
-133-
Information
Technology
Risk
Management Total
ASSET S
Current Assets:
Cash and Investments 3,321,946 $ 5,034,058 $ 8,356,004 $ Accounts Receivable 8,593 1,133 9,726 Prepaid Costs 730,650 115,513 846,163 Inventory - 11,597 11,597 Due From Other Governments - 3,000 3,000 Deposits Held with Others - 2,042,873 2,042,873 Total Current Assets 4,061,189 7,208,174 11,269,363 Noncurrent:
Capital Assets, net 658,298 - 658,298 Total Assets 4,719,487 7,208,174 11,927,661
LIABILITIES
Current Liabilities:
Accounts Payable 22,468 89,235 111,703 Accrued Liabilities 97,461 24,082 121,543 Unearned Revenues 15 1,133 1,148 Accrued Compensated Absences 105,947 (13,895) 92,052 Accrued Claims and Judgments - 5,509,984 5,509,984 Lease and Subscription Liabilities 203,561 - 203,561 Total Current Liabilities 429,452 5,610,539 6,039,991 Noncurrent:
Accrued Compensated Absences 1,554 27,904 29,458 Accrued Claims and Judgments - 7,685,329 7,685,329 Lease and Subscription Liabilities 43,139 - 43,139 Total Noncurrent Liabilities 44,693 7,713,233 7,757,926 Total Liabilities 474,145 13,323,772 13,797,917
NET POSITION (DEFICIT)
Net Investment in Capital Assets 411,598 - 411,598 Restricted for PEG 432,860 - 432,860 Unrestricted 3,400,884 (6,115,598) (2,714,714) Total Net Position (Deficit) 4,245,342$ (6,115,598) $ (1,870,256) $ Governmental Activities - Internal
Service Funds
433
City of Murrieta
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Internal Service Funds
For the Year Ended June 30, 2024
-134-
Information
Technology
Risk
Management Total
OPERATING REVENUES
Interdepartmental Charges 4,121,389 $ 8,814,653 $ 12,936,042 $ Franchise Taxes 36,903 - 36,903 Total Operating Revenues 4,158,292 8,814,653 12,972,945
OPERATING EXPENSES
Administration and General 3,123,120 5,114,383 8,237,503 Claims - 3,345,705 3,345,705 Depreciation and Amortization 565,491 - 565,491 Total Operating Expenses 3,688,611 8,460,088 12,148,699 OPERATING INCOME 469,681 354,565 824,246
NONOPERATING REVENUES (EXPENSES)
Interest Revenue 117,047 257,741 374,788 Interest Expense (13,121) - (13,121) Gain (loss) on sale of equipment (557,189) - (557,189) Total Nonoperating Revenues (Expenses) (453,263) 257,741 (195,522) CHANGES IN NET POSITION 16,418 612,306 628,724 Net Position (Deficit), beginning of year 4,228,924 (6,727,904) (2,498,980) Net Position (Deficit), end of year 4,245,342 $ (6,115,598) $ (1,870,256) $ Governmental Activities - Internal
Service Funds
434
City of Murrieta
Combining Statement of Cash Flows – Internal Service Funds June 30, 2024
-135-
Information
Technology
Risk
Management Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Interfund Service Provided 4,160,145$ 8,811,653 $ 12,971,798 $ Cash Paid to Suppliers for Goods and Services (1,723,288) (4,798,635) (6,521,923) Cash Paid to Employees for Services (1,459,062) (225,908) (1,684,970) Claims Paid - (663,324) (663,324) Net Cash Provided by Operating Activities 977,795 3,123,786 4,101,581
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments on subscription-based liability (146,585) (146,585) Principal payments on note (39,452) - (39,452) Interest payments on note (13,121) - (13,121) Purchase of equipment (262,045) - (262,045) Net Cash Provided by Noncapital
Financing Activities (461,203) - (461,203)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 117,047 257,741 374,788 Net Cash Provided by Investing Activities 117,047 257,741 374,788 NET CHA NGE IN CA SH A ND CA SH EQUIVA LENTS 633,639 3,381,527 4,015,166 Cash and Cash Equivalents, beginning of year 2,688,307 1,652,531 4,340,838 Cash and Cash Equivalents, end of year 3,321,946 $ 5,034,058 $ 8,356,004 $
RECONCILIA TION OF OPERA TING (INCOME)
TO NET CASH PROVIDED BY OPERATING
A CTIVITIES
Operating (Income) 469,681 $ 354,565 $ 824,246 $ Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation and Amortization Expense 565,491 - 565,491 (Increase) Decrease in Accounts Receivable 1,853 (1,133) 720 (Increase) Decrease in Prepaid Costs 58,119 (1,086) 57,033 (Increase) Decrease in Inventory - 5,380 5,380 (Increase) Decrease in Due From Other Governments - (3,000) (3,000) (Increase) Decrease in Deposits Held with Others - 2,793,439 2,793,439 (Increase) Decrease in Accounts Payable (117,453) 69,313 (48,140) Increase (Decrease) in Accrued Liabilities 19,787 8,201 27,988 Increase (Decrease) in Unearned Revenue - 1,133 1,133 Increase (Decrease) in Claims and Judgments - (111,058) (111,058) Increase (Decrease) in Compensated Absences (19,683) 8,032 (11,651) Total Adjustments 508,114 2,769,221 3,277,335 Net Cash Provided by Operating Activities 977,795 $ 3,123,786 $ 4,101,581 $ Governmental Activities - Internal
Service Funds
435
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436
STATISTICAL SECTION
437
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438
City of Murrieta
Statistical Section
For the Year Ended June 30, 2024
-136-
Statistical Section
This part of the City of Murrieta’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.
CONTENTS:
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.
x Net Position by Component
x Changes in Net Position
x Fund Balances of Governmental Funds
x Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property taxes.
x Assessed Value and Estimated Actual Value of Taxable Property x Direct and Overlapping Property Tax Rates
x Principal Property Tax Payers
x Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
x Ratios of Outstanding Debt by Type
x Ratios of General Bonded Debt Outstanding
x Direct and Overlapping Governmental Activities Debt
x Legal Debt Margin Information
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 help make comparisons over time and with other governments.
x Demographic and Economic Statistics
x Principal Employers
439
City of Murrieta
Statistical Section
For the Year Ended June 30, 2024
-137-
Operating Information
These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the City provides and the size and scope of its operations.
x Full-Time Equivalent City Government Employees by Function/Program x Operating Indicators by Function/Program
x Capital Assets Statistics by Function/Program
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
440
City of Murrieta
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)
-138-
2 0 1 5 2 0 1 6 2 0 1 72 0 1 82 0 1 92 0 2 02 0 2 12 0 2 22 0 2 32 0 2 4 Governmental Activities
Net Investment in Capital Assets 484,398,241 $ 474,770,950 $ 471,916,723 $ 473,090,324 $ 470,821,893 $ 465,074,857 $ 453,497,550 $ 442,591,027 $ 436,191,370 $ 432,409,678 $ Restricted 79,838,599 87,273,906 89,929,796 105,088,044 111,079,503 103,136,669 94,056,151 186,274,667 123,733,392 133,963,316 Unrestricted (16,592,998) (14,653,798) (13,848,839) (41,046,353) (31,457,063) (9,829,207) 23,522,302 (25,236,928) (840,095) 8,728,392 Total Governmental Activities Net Position 547,643,842$ 547,391,058 $ 547,997,680 $ 537,132,015 $ 550,444,333 $ 558,382,319 $ 571,076,003 $ 603,628,766 $ 559,084,667 $ 575,101,386 $ Primary Government
Net Investment in Capital Assets 484,398,241 $ 474,770,950 $ 471,916,723 $ 473,090,324 $ 470,821,893 $ 465,074,857 $ 453,497,550 $ 442,591,027 $ 436,191,370 $ 432,409,678 $ Restricted 79,838,599 87,273,906 89,929,796 105,088,044 111,079,503 103,136,669 94,056,151 186,274,667 123,733,392 133,963,316 Unrestricted (16,592,998) (14,653,798) (13,848,839) (41,046,353) (31,457,063) (9,829,207) 23,522,302 (25,236,928) (840,095) 8,728,392 Total Primary Government Activities Net Position 547,643,842$ 547,391,058 $ 547,997,680 $ 537,132,015 $ 550,444,333 $ 558,382,319 $ 571,076,003 $ 603,628,766 $ 559,084,667 $ 575,101,386 $ Fiscal Year
441
City of Murrieta
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)
-139-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses
Governmental Activities:
General Government 10,272,032 $ 7,147,019 $ 6,897,851 $ 8,792,429 $ 9,946,480 $ 9,585,480 $ 10,584,605 $ 9,948,145 $ 17,679,910 $ 20,331,417 $ Public Safety 37,185,694 36,159,079 39,540,555 46,256,080 45,498,308 49,295,183 58,821,008 55,338,998 72,862,928 84,583,049 Community development 4,620,996 3,785,546 3,583,540 4,520,971 4,238,848 5,758,019 5,440,727 5,385,148 8,202,449 8,168,208 Parks and recreation 14,018,797 13,285,200 14,036,956 15,937,895 14,346,304 12,702,695 15,090,578 16,246,798 19,336,947 20,377,781 Public works 11,854,445 16,499,024 15,479,683 14,632,165 16,196,832 7,014,041 24,720,807 21,449,510 19,808,063 20,239,187 Interest on Long-term debt 408,261 378,892 337,616 320,046 613,581 705,260 323,746 4,278,037 2,462,044 3,234,953 Principal retirement - - - - - 1,111,972 - - - - Cost Issuance - - - - - 37,395 - - - - Total Governmental Activities Expenses 78,360,225 77,254,760 79,876,201 90,459,586 90,840,353 86,210,045 114,981,471 112,646,636 140,352,341 156,934,595 Total Primary Government Expenses 78,360,225$ 77,254,760 $ 79,876,201 $ 90,459,586 $ 90,840,353 $ 86,210,045 $ 114,981,471 $ 112,646,636 $ 140,352,341 $ 156,934,595 $ Program Revenues
Governmental Activities:
Charges for Services:
General Government 344,956 $ 393,066 $ 380,150 $ 339,285 $ 506,317 $ 358,992 $ 407,393 $ 766,593 $ 1,846,704 $ 737,081 $ Public Safety 3,372,277 3,173,165 3,054,659 2,835,262 2,531,423 2,302,332 2,127,808 2,216,612 3,458,096 2,600,341 Community development 1,593,650 1,619,494 1,543,461 1,801,558 2,161,102 2,105,244 2,436,099 2,736,683 5,025,514 10,981,702 Parks and recreation 9,011,424 9,210,859 9,228,886 9,789,417 10,110,756 9,720,311 9,575,095 10,139,229 10,222,700 10,463,663 Public works 1,735,377 2,519,618 2,372,120 2,181,995 3,711,312 1,536,320 2,705,445 2,878,347 5,805,023 3,331,014 Operating Contributions:
General Government - - - - - 28 100,213 52,631 4,201,413 2,407,204 Public Safety 1,771,525 1,912,293 2,125,732 2,846,717 2,193,855 3,048,607 6,307,152 5,412,566 3,261,229 4,010,312 Community development 127,269 - 87 978,185 357,434 192,013 393,691 67,755 122,061 435,336 Parks and recreation 561 - - 7,210 6,551 565,563 8,252 1,619 73,554 2,464,901 Public works 11,536 - - - - - - - - - Capital Contributions and Grants:
Public Safety 934,577 702,382 286,376 478,295 684,204 449,730 - - 100,744 - Community development - - - - - - - - - - Parks and recreation - 126,167 439,480 284,038 34,897 22,845 17,233 44,605 23,785 28,734 Public works 12,800,355 11,082,791 13,934,929 16,346,203 13,726,110 10,418,244 11,867,320 18,048,160 27,296,307 15,888,948 Total Governmental Activities Revenues 31,703,507 30,739,835 33,365,880 37,888,165 36,023,961 30,720,229 35,945,701 42,364,800 61,437,13 0 53,349,236 Total Primary Government Revenues 31,703,507$ 30,739,835 $ 33,365,880 $ 37,888,165 $ 36,023,961 $ 30,720,229 $ 35,945,701 $ 42,364,800 $ 61,437,130 $ 53,349,236 Net (Expense)/Revenue
Government Activities (46,656,718) (46,514,925) (46,510,321) (52,571,421) (54,816,392) (55,489,816) (79,035,770) (70,281,836) (78,915,21 1) (103,585,359) Total Primary Government Net Expenses (46,656,718)$ (46,514,925) $ (46,510,321) $ (52,571,421) $ (54,816,392) $ (55,489,816) $ (79,035,770) $ (70,281,836) $ (78,915,211) $ (103,585,359) $ Fiscal Year
442
City of Murrieta
Changes in Net Position (Continued)
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
-140-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Changes in Net Position
Governmental Activities:
Taxes:
Property taxes, levied for general purpose 25,375,863$ 26,976,510 $ 27,365,716 $ 18,318,390 $ 19,249,637 $ 20,426,934 $ 21,298,548 $ 21,804,948 $ 24,419,742 $ 25,165,760 $ Property taxes, levied for Fire Safety - - - 10,638,490 11,130,640 11,474,940 12,322,314 12,828,976 14,125,562 16,391,638 Property transfer tax 599,789 570,417 587,705 688,336 604,380 605,043 958,733 1,224,304 576,080 686,263 Transient occupancy taxes 180,655 406,402 588,862 1,034,918 1,377,892 1,275,998 1,388,646 2,111,609 1,907,457 1,989,170 Sales taxes 13,869,833 14,827,391 15,633,644 17,813,627 23,410,479 36,672,600 47,903,495 54,788,375 55,580,286 53,880,062 Franchise tax 3,698,577 3,645,115 3,557,828 3,648,879 3,609,689 4,027,797 4,692,590 4,644,997 4,915,332 5,156,401 Business licenses taxes 653,483 690,342 752,963 769,637 779,147 780,905 797,738 920,357 928,285 1,185,824 Intergovernmental, unrestricted:
Motor Vehicle in Lieu - - - 60,489 54,500 93,491 84,757 133,053 113,965 136,741 Investment Income - - - 783,865 3,844,936 5,304,590 (80,196) 2,168,412 4,579,089 14,329,611 Use of money and property 1,032,747 1,835,084 444,274 - - - - - - - Gain on sale of asset - - 456,254 14,615 808,656 87,574 1,370,549 - 21,566.00 46,631 Other 200,084 310,880 269,945 366,363 3,258,754 838,135 925,222 1,067,693 1,082,009 1,037,269 Total Governmental Activities 45,611,031 49,262,141 49,657,191 54,137,609 68,128,710 81,588,007 91,662,396 101,692,724 108,249,373 120,005,370 Total Primary Government 45,611,031$ 49,262,141 $ 49,657,191 $ 54,137,609 $ 68,128,710 $ 81,588,007 $ 91,662,396 $ 101,692,724 $ 108,249,373 $ 120,005,370 $ Changes in Net Position
Governmental Activities (1,045,687) $ 2,747,216 $ 3,146,870 $ 1,566,188 $ 13,312,318 $ 26,098,191 $ 12,626,626 $ 31,410,888 $ 29,334,162 $ 16,420,011 $ Total Primary Government (1,045,687)$ 2,747,216 $ 3,146,870 $ 1,566,188 $ 13,312,318 $ 26,098,191 $ 12,626,626 $ 31,410,888 $ 29,334,162 $ 16,420,011 $ Fiscal Year
443
City of Murrieta
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
-141-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable 4,830,894 $ 4,823,933 $ 3,331,733 $ 2,557,690 $ 1,732,505 $ 3,102,003 $ 1,388,443 $ 4,480,717 $ 4,181,606 $ 3,742,577 $ Restricted - - - 6,760,566 1,102,039 1,102,039 795,242 203,435 225,188 137,371 Committed 4,441,271 4,778,387 4,521,921 16,212,641 22,506,936 22,504,550 39,848,266 59,624,816 51,229,664 86,200,190 Assigned 132,292 147,482 57,042 57,042 57,042 57,042 52,482 52,482 57,042 52,482 Unassigned 15,381,707 18,048,951 16,562,140 10,218,675 16,573,369 34,261,832 40,804,323 40,602,221 71,473,681 52,796,685 Total General Fund 24,786,164 $ 27,798,753 $ 24,472,836 $ 35,806,614 $ 41,971,891 $ 61,027,466 $ 82,888,756 $ 104,963,671 $ 127,167,181 $ 142,929,305 $ All other Governmental Funds
Nonspendable 500,000 $ 500,000 $ 500,000 $ 500,000 $ 506,158 $ 528,501 $ 531,288 $ 536,360 $ 556,728 $ 568,030 $ Restricted 68,942,318 76,089,575 79,129,454 94,839,481 100,524,128 96,978,550 98,428,363 181,919,349 123,008,204 133,325,945 Committed 8,489,144 8,856,754 8,306,021 - - - - - - - Assigned 97,452 90,042 90,042 - - - - - - - Unassigned (940,294) (695,719) (1,112,972) (2,575,834) (1,276,679) (1,442,029) (301,651) (1,481,934) (939,852) (723,598) Total all other Governmental Funds 77,088,620$ 84,840,652 $ 86,912,545 $ 92,763,647 $ 99,753,607 $ 96,065,022 $ 98,658,000 $ 180,973,775 $ 122,625,080 $ 133,170,377 $ Fiscal Year
444
City of Murrieta
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
-142-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues:
Taxes and Assessments 54,468,411 $ 57,904,070 $ 59,007,161 $ 62,790,280 $ 70,126,890 $ 85,350,816 $ 100,053,513$ 109,123,680 $ 119,646,012 $ 123,213,972 $ Licenses and permits 1,154,123 1,105,445 1,023,259 2,040,716 2,399,579 2,080,504 2,439,357 2,772,424 3,397,879 3,125,112 Intergovernmental 10,820,666 8,495,466 12,731,256 16,225,261 12,342,123 12,668,577 14,115,138 13,431,231 22,948,591 22,054,052 Charges for services 4,222,987 4,844,048 4,468,015 4,581,800 5,510,046 3,518,657 3,924,451 4,955,346 6,694,073 6,008,710 Use of money and property 962,986 1,691,970 263,706 927,905 3,725,701 5,083,461 180,913 1,581,529 4,578,267 14,215,797 Fines and Forfeitures 663,543 597,323 577,938 523,318 363,662 437,562 291,770 445,223 601,204 526,408 Developer participation 4,884,976 6,018,530 3,386,587 4,246,835 5,640,778 2,895,414 3,647,776 6,564,016 12,363,259 3,694,209 Miscellaneous 250,547 310,884 269,949 655,483 3,259,352 885,465 577,356 2,145,070 861,994 768,251 Total Revenues 77,428,239 80,967,736 81,727,871 91,991,598 103,368,131 112,920,456 125,230,274 141,018,519 171,091,279 173,606,511 Expenditures:
General Government 5,648,042 6,588,183 8,453,497 6,980,621 9,218,519 9,585,480 8,884,662 9,601,609 16,026,437 16,904,616 Public Safety 36,495,257 37,201,869 38,655,871 39,811,607 44,155,921 49,295,183 54,706,927 61,449,186 66,154,902 73,855,905 Community development 4,620,996 3,785,546 3,583,540 3,842,370 4,383,037 5,758,019 5,373,799 6,100,867 7,574,717 7,799,638 culture and recreation 12,155,071 11,292,830 11,984,108 12,914,472 12,547,690 12,702,695 13,018,592 14,619,911 15,907,301 17,332,491 Public works 4,693,407 5,290,180 5,322,975 5,675,492 13,065,711 7,014,041 8,626,873 7,621,552 9,737,147 10,032,164 Capital outlay 12,774,705 4,759,269 12,060,800 11,485,200 5,387,355 11,581,057 13,565,571 10,044,523 9,687,885 10,818,189 Debt service:
Principal retirement 700,000 929,396 964,320 1,366,431 1,381,616 1,111,972 7,560,798 6,456,648 5,571,915 7,107,548 Interest 399,412 391,209 358,887 329,372 503,045 705,260 440,514 4,463,883 2,829,855 3,091,878 Debt issuance costs - - - - - 37,395 161,468 488,630 - - Total Expenditures 77,486,890 70,238,482 81,383,998 82,405,565 90,642,894 97,791,102 112,339,204 120,846,809 133,490,159 146,942,429 Excess (Deficiency) of Revenues (58,651) 10,729,254 343,873 9,586,033 12,725,237 15,129,354 12,891,070 20,171,710 37,6 01,120 26,664,082 Over (Under) Expenditures
Other Financing Sources (uses):
Transfers in 3,311,249 2,691,218 3,296,696 2,313,376 4,368,720 2,441,067 5,429,618 6,503,052 8,071,183 8,744,385 Transfers out (3,303,293) (2,691,218) (3,886,696) (2,913,376) (4,968,720) (2,441,067) (5,429,618) (6,503,052) (8,071,183) (8,744,385) Long-term debt issued 827,621 - - - - 4,319,919 6,343,000 - - - Bond Proceeds - - - - - - - 29,075,000 - - Bonds Premium - - 668,975 8,184,232 - - - 2,612,562 - - Payment to refunding escrow agent - - - - - (4,889,733) - (37,788,065) - - Proceeds from sale of capital assets 1,063,802 35,367 863,376 14,615 1,030,000 87,574 4,908,825 65,866 21,566 46,631 Capital lease proceeds - - - - - 578,545 452,704 - - - Lease/SBITA acquisition - - - - - - - 825,604 110,390 - Total Other Financing Sources (uses) 1,899,379 35,367 942,351 7,598,847 430,000 96,305 11,704,529 (5,209,033) 131,956 46,631 Net change in fund balances 1,840,728$ 10,764,621 $ 1,286,224 $ 17,184,880 $ 13,155,237 $ 15,225,659 $ 24,595,599 $ 14,962,677 $ 37,733,076 $ 26,710,713 $ Debt services as a percentage of noncapital
expenditures 1.70% 2.00% 1.90% 2.40% 2.20% 2.10% 8.10% 9.90% 6.79% 7.49% Fiscal Year
445
City of Murrieta
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Dollars in Thousands)
-143-
Total Estimated Taxable Assessed
Less: Total Taxable Effective Actual Value Value as a
Fiscal Residential Commercial Other Tax-Exempt Assessed Tax Taxable Percentage of Year Property Property Property Property Value Rate Property* Actual Taxable Value 2015 8,692,355$ 1,339,531 $ 1,060,177 $ (37,160) $ 11,054,903$ 0.0769% N/A N/A 2016 9,110,367 1,429,009 1,086,358 (37,924) 11,587,810 0.0770% N/A N/A 2017 9,562,560 1,285,780 1,124,523 (39,773) 11,933,090 0.0770% N/A N/A 2018 10,094,631 1,439,680 1,116,132 (39,528) 12,610,915 0.0771% N/A N/A 2019 10,630,537 1,603,699 1,178,540 (40,317) 13,372,459 0.0772% N/A N/A 2020 11,201,218 1,666,691 1,156,797 (391) 14,024,315 0.0772% N/A N/A 2021 11,738,707 1,775,724 1,182,204 - 14,696,635 0.0773% N/A N/A 2022 12,322,242 1,841,340 1,220,136 - 15,383,718 0.0774% N/A N/A 2023 13,297,795 1,940,273 1,328,166 - 16,566,234 0.0773% N/A N/A 2024 14,192,005 2,115,061 1,415,224 - 17,722,290 0.0776% N/A N/A N/A - Data Not Available
*In 1978 the voters passed Proposition 13 which sets the property tax rate at a 1% fixed amount. The assessed valuation data sho w
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.
Source:
The HdL Companies
City of Murrieta Finance Department
446
City of Murrieta
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years (Rate Per $100 of Taxable Value)
-144-
Agency 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Direct Rate
City of Murrieta Library 0.02850 0.02850 0.02850 0.02850 0.02850 0.02850 0.02850 0.02850 0.02850 0.02850 County Free Library - - - - - - - - - - Riverside County General 0.22270 0.22270 0.22270 0.22270 0.22274 0.11130 0.11130 0.11130 0.11130 0.11130 Elsinore Area Elementary School Fund 0.07560 0.07560 0.07560 0.07560 0.07560 0.07560 0.07560 0.07560 0.07560 0.07560 Flood Control Administration 0.00279 0.00279 0.00279 0.00279 0.00279 0.00279 0.00279 0.00279 0.00279 0.00279 Flood Control Zone 7 0.01720 0.01720 0.01720 0.01720 0.01720 0.01720 0.01720 0.01720 0.01720 0.01720 Mt. San Jacinto Junior College 0.04140 0.04140 0.04140 0.04140 0.04140 0.04140 0.04140 0.04140 0.04140 0.04140 Murrieta Cemetery 0.00298 0.00298 0.00298 0.00298 0.00298 0.00298 0.00298 0.00298 0.00298 0.00298 ERAF Share of Murrieta Fire Protection District-Cnty 0.00599 0.00599 0.00599 0.00599 0.00599 Murrieta Fire Protection-County 0.06130 0.06130 0.06130 0.06130 0.06129 0.05530 0.05530 0.05530 0.05530 0.05530 ERAF Share of Murrieta Fire Protection District-City 0.00151 0.00151 0.00151 0.00151 0.00151 Murrieta Fire Protection-City 0.05310 0.05310 0.05310 0.05310 0.05311 0.05160 0.05160 0.05160 0.05160 0.05160 ERAF Share of Murrieta General Fund 0.01247 0.01247 0.01247 0.01247 0.01247 Murrieta General Fund 0.07108 0.07108 0.07108 0.07120 0.07117 0.05870 0.05870 0.05870 0.05870 0.05870 Murrieta Unified School District 0.33370 0.33370 0.33370 0.33370 0.33370 0.33370 0.33370 0.33370 0.33370 0.33370 Riverside County Office of Education 0.04390 0.04390 0.04390 0.04390 0.04390 0.04390 0.04390 0.04390 0.04390 0.04390 Riverside County Reg Park & Open Space 0.00445 0.00445 0.00445 0.00445 0.00445 0.00445 0.00445 0.00445 0.00445 0.00445 Eastern Municipal Water District 0.04130 0.04130 0.04130 0.04130 0.04130 0.04130 0.04130 0.04130 0.04130 0.04130 Western Municipal Water 9th Fringe - - - - - - - - - - ERAF Share of County General 0.11144 0.11144 0.11144 0.11144 0.11144 Total Direct Rate(1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Overlapping Rates:
Eastern Municipal Water District 0.05400 0.02400 0.02400 0.01900 0.01900 0.01900 0.01900 0.01900 0.00860 0.00860 Metropolitan Water District (original area) 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Mt. San Jacinto Junior College - 0.01394 0.01320 0.01320 0.01320 0.01320 0.01320 0.01320 0.01320 0.01320 Menifee School District 0.03275 0.03010 0.03269 0.06080 0.06303 0.06277 0.06111 0.06319 0.06201 0.06063 Murrieta Unified School District 0.11699 0.13703 0.13294 0.12587 0.11946 0.11945 0.11945 0.11955 0.11955 0.11955 Perris Union High School District 0.06303 0.06236 0.06092 0.05675 0.05243 0.08244 0.08569 0.08859 0.08859 0.08173 Rancho California Water District 0.80000 0.80000 0.80000 0.80000 0.80000 0.80000 0.80000 0.80000 0.80000 0.80000 Temecula Unified School District 0.03019 0.02741 0.03164 0.03287 0.03061 0.02938 0.02389 0.02389 0.02389 0.02389 Total Overlapping Rates(2) 1.10046 1.09834 1.09889 1.11199 1.10123 1.12974 1.12584 1.13092 1.11934 1.11110 Combined Total 2.10046 2.09834 2.09889 2.11199 2.10123 2.12974 2.12584 2.13092 2.11934 2.11110 City's Share of 1% Levy Per Prop 13(3) 0.07369 0.07369 0.07369 0.07369 0.07369 0.07369 0.73690 0.07369 0.07369 0.07369 Redevelopment Rate(4) - - - - - - - - - -
Total Effective Rate(5) 0.07692 0.07702 0.07706 0.07714 0.07718 0.07720 0.07726 0.07741 0.07733 0.07756
Source: The HdL Companies
Notes:
(5) Total Direct Rate is the weighted average of all indirect rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.
Fiscal Year
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a % of assessed property values for the payment of any voter approved bonds. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. (3) The City's share of 1% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures.
(4) The RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California state statute. RDA direct and overlapping rates are applied only to the incremental property values.
447
City of Murrieta
Principal Property Taxpayers
Current Year and Ten Years Ago
-145-
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Ran k Value
Sreit Waterstone at Murrieta Apartments 159,822,955$ 1 0.90% MG Mitchell Place Apartments LLC 136,930,064 2 0.77% Universal Health Services of Rancho Spring 81,411,300 3 0.46% Pacific Landing 81,056,927 4 0.46%
Murrieta Town Center Retail Owner LP 71,949,641 5 0.41% Murrieta 492 71,677,448 6 0.40%
Arbors at California Oaks Properties 68,685,305 7 0.39% CH Realty IX MF San Diego Eagle Glen 63,064,631 8 0.36% FG Murrieta SR Apartments 59,199,700 9 0.33%
WalMart Realty Company 54,094,877 10 0.31%
Total 847,892,848 $ 4.79%
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Ran k Value
Health Care REIT 207,026,767 $ 1 1.87%
Universal Health Services 64,141,438 2 0.58%
Murrieta 492 58,296,599 3 0.53%
Arbors at California Oaks Properties 53,497,165 4 0.48% 24850 Hancock Avenue 50,783,978 5 0.46%
Target Corporation 47,593,044 6 0.43%
FG Murrieta Sr Apartment 46,620,700 7 0.42%
Eagle Glen Apartments 43,977,489 8 0.40%
WalMart Realty Company 42,549,375 9 0.38%
Physicians Hospital of Rancho California 41,001,271 10 0.37% 655,487,826$ 5.92%
Source: The HdL Companies and Riverside County Assessor 2015
2024
448
City of Murrieta
Principal Tax Levies and Collections
Last Ten Fiscal Years
-146-
Fiscal
Year
Ended
June 30
Taxes Levied
for the Fiscal
Year Amount
Percent
of Levy
Collections
in
Subsequent
Years(1) Amount Percent of Levy
2015 15,585,958$ 14,639,096 $ 94% 388,565 $ 15,027,661 $ 96% 2016 16,391,822 15,415,384 94% 405,410 15,820,794 97% 2017 17,158,388 16,281,633 95% 430,059 16,711,692 97% 2018 17,710,620 15,519,448 88% 116,863 15,636,311 88% 2019* 20,136,391 19,619,766 97% 600,825 20,220,591 100% 2020 21,320,104 20,359,445 95% 586,840 20,946,285 98% 2021 21,415,972 20,577,475 96% 775,040 21,352,515 100% 2022 22,395,811 21,515,766 96% 826,078 22,341,844 100% 2023 24,180,725 23,239,106 96% 660,030 23,899,136 99% 2024 25,807,679 24,608,498 95% 951,385 25,559,883 99%
Source:
City of Murrieta Finance Department
Office of Auditor-Controller, Riverside County
*Restatement
(1) The City of Murrieta participates in the Riverside County Teeter program which allows for a 30% advance, one settlement payment for the first installment, a 10% advance and a settlement payment for the second installment, all of which are remitted within the year of levy. One additional settlement payment is made during the subsequent year. After that, data provided by the Riverside County Office of Auditor-Controller for collection of prior year taxes, does not segregate payment information by fiscal year. Therefore, the City is not able to report any additional prior year remittances by specific year of levy.
Collected Within the Fiscal
Year of Levy Total Collections to Date
449
City of Murrieta
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
-147-
Percentage
Fiscal of Personal Per
Year
Other
Leases Total Debt Income
c
Capita
c
2015 8,260,000$ - $ - $ - $ 827,621$ - $ - $ 9,087,621$ 0.30% 80 2016 7,530,000 - - - 628,225 - - 8,158,225 0.26% 71 2017 6,770,000 - - - 1,092,880 - - 7,862,880 0.25% 68 2018 5,970,000 - - - 8,710,681 - - 14,680,681 0.44% 124 2019 5,145,000 - - - 7,883,717 - - 13,028,717 0.37% 113 2020 3,790,000 505,272 - - 7,375,583 - - 11,670,855 0.33% 101 2021 3,790,000 431,330 - - 6,491,619 - - 10,712,949 0.29% 93 2022 3,215,000 357,388 1,354,046 - 6,032,183 76,787,562 2,612,562 90,358,741 2.17% 789 2023 2,620,000 283,446 1,492,303 428,506 5,393,589 72,184,849 2,394,849 84,797,542 1.95% 749 2024 2,005,000 209,504 1,864,052 1,751,771 4,736,137 64,780,000 2,177,135 77,523,599 1.84% 705 N/A - Data Not Available
Notes:
Source: City of Murrieta Finance Department
Details regarding the city's outstanding debt can be found in the notes to the financial statements. In fiscal year 2017-18, presentation has been modified to exclude non-general bonded debt and include net position restricted for debt service. In fiscal year 2022-23, presentation has been modified to remove Tax Allocations Bonds that the City has not had for a The 2007 Certificates of Participation Bonds were refunded in 2020 into Lease Revenue Refunding Bonds, Series 2020A, which included a Premium of $529,919.10. b The FY22 Financial Statements were restated to include the previous Community Facilities Districts Debt that was refunded by the Murrieta Financing Authority. Local Agency Revenue Bonds, Series 2022 included a Premium of $2,612,562.
c See Demographic and Economic Statistics schedule for personal income and population data. d Fiscal year 22 and 23 included the unamortized premium in both the Murrieta Financing Authority Debt column and the unamortized premium column, resulting in overreported debt. Fiscal year 24 is reported separately.
Unamortized
Premium
b
General
Bonded
Certificates
of
Unamortized
Premium
a
GA SB 87
Leases Subscriptions
Murrieta
Financing
Authority
Debt
d
450
City of Murrieta
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
-148-
Tax Certificates Amount Percent
Fiscal Allocation of Restricted for of Assessed Per
Year Bonds Participation Debt Service Total Value(1) Capita b 2015 - $ 8,260,000$ - $ (415,000)$ 7,845,000 $ 0.07% 69 2016 - 7,530,000 - (435,000) 7,095,000 0.06% 62 2017 - 6,770,000 - (450,000) 6,320,000 0.05% 55 2018 - 5,970,000 - (475,000) 5,495,000 0.04% 47 2019 - 5,145,000 - (490,000) 4,655,000 0.03% 40 2020 - 3,790,000 505,272 (26,951) 3,763,049 0.03% 33 2021 - 3,790,000 431,330 (151,600) 3,638,400 0.02% 32 2022 - 3,215,000 357,388 (726,600) 2,488,400 0.02% 22 2023 - 2,620,000 283,446 (723,600) 1,896,400 0.01% 17 2024 - 2,005,000 209,504 (719,800) 1,285,200 0.01% 12 N/A-Data not available
Note:
Source: City of Murrieta Finance Department
(1) Assessed value has been used because the actual value of taxable property is not readily available in the State of a The 2007 Certificates of Participation Bonds were refunded in 2020 into Lease Revenue Refunding Bonds, Series 2020A, which b See Demographic and Economic Statistics schedule for population data.
Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Unamortized
Premium a
451
City of Murrieta
Direct and Overlapping Governmental Activities Debt
For the Year Ended June 30, 2024
-149-
2023-24 Assessed Valuation: 17,737,137,229 $
Gross Bonded Gross Non-Bonded City’s Share
Overlapping Tax and Assessment Debt: Debt Balance Debt Balance of Debt City of Murrieta 1915 Act Bonds 1,270,000 $ 100.000% 1,270,000 $ City of Murrieta Community Facilities Districts 83,550,000 100.000% 83,550,000 $ Total Direct Tax and Assessment Debt 84,820,000
Other Overlapping Tax and Assessment Debt:
Metropolitan Water District 18,210,000 $ 0.455% 82,856 Riverside County Flood Control and Water Conservation District, Zone 4 2,755,000 0.774% 21,324 Mt. San Jacinto Community College District 242,210,000 13.639% 33,035,022 Murrieta Valley Unified School District 152,935,205 83.415% 127,570,901 Murrieta Valley Unified School District Community Facilities Districts 83,981,152 100.000% 83,981,152 Temecula Valley Unified School District 159,316,966 0.016% 25,491 Perris Union High School District 292,042,191 5.430% 15,857,891 Perris Union High School District Community Facilities District No. 92-1 30,100,000 13.050% 3,928,050 Menifee Union School District 152,811,292 8.750% 13,370,988 Eastern Municipal Water District Improvement Districts 13,045,000 0.901-99.902% 2,107,274 Rancho California Water District Community Facilities Districts 11,610,000 100.000% 11,610,000 Eastern Municipal Water District Community Facilities Districts 4,195,000 100.000% 4,195,000 Elsinore Valley Municipal Water District Community Facilities Districts 2,834,000 100.000% 2,834,000 Western M unicipal Water District Community Facilities Districts 1,567,104 100.000% 1,567,104 Riverside County Community Facilities Districts 1,375,000 100.000% 1,375,000 California Statewide Community Development Authority
Assessment District No. 2018-01 1,917,000 100.000% 1,917,000 Eastern Municipal Water District 1915 Act Bonds 1,600,000 2.935% 46,960 Total Other Overlapping Tax and Assessment Debt 303,526,013 Combined Total Overlapping Tax and Assessment Debt 388,346,013 Ratios to 2022-23 Assessed Valuations:
Total City Overlapping Tax and Assessment Debt 0.48%
Combined Total Overlapping Tax and Assessment Debt 2.19% Direct Debt:
City of Murrieta General Fund Obligations 2,005,000 $ 100.000% 2,005,000 Premium 209,504 100.000% 209,504
Lease Liabilities 1,864,052 100.000% 1,864,052 Subscription Liabilities 1,751,771 100.000% 1,751,771 Other Leases 4,736,137 100.000% 4,736,137
Murrieta Financing Authority Debt 64,780,000 100.000% 64,780,000 Premium 2,177,136 100.000% 2,177,136
Total Direct General Fund Debt 77,523,600
Overlapping General Fund Debt:
Riverside County General Fund Obligations 1,169,217,035 $ 4.470% 52,264,001 Riverside County Pension Obligations 670,785,000 4.470% 29,984,090 Murrieta Valley Unified School District Certificates of Participation 20,360,000 83.415% 16,983,294 Other School District Certificates of Participation 84,711,044 Various 6,080,088 Western Municipal Water District General Fund Obligations 2,724,440 1.944% 52,963 Total Gross Overlapping General Fund Debt 105,364,436
Less: Riverside County self-supporting obligations -
Total Net Overlapping General Fund Debt 105,364,436$
Overlapping Tax Increment Debt (Successor Agencies): 209,545,065 $ 0.476-100% 33,043,859 $ Total Direct Debt 77,523,600$
Total Gross Overlapping Debt 526,754,308$
Total Net Overlapping Debt 526,754,308$
Grand Total Gross Direct and Overlapping Debt 604,277,908$ (2) Grand Total Net Direct and Overlapping Debt 604,277,908$ Notes:
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2023-24 Assessed Valuation:
Total Direct Debt ($)…..………………………………………......... ......…….0.44% Grand Total Gross Direct and Overlapping Debt……..……….…………..…3.41% Grand Total Net Direct and Overlapping Debt………………………...……..3.41% Ratios to Redevelopment Incremental Valuation ($):
Total Overlapping Tax Increment Debt………….………….……………...…2.18% Source:
Avenu Insights & Analytics
California Municipal Statistics, Inc.
% Applicable
to City (1)
452
City of Murrieta
Legal Debt Margin Information
Last Ten Fiscal Years (Dollars in Thousands)
-150-
Legal Debt Margin Calculation for Fiscal Year 2024
Assessed value 17,737,137,229 $
Conversion percentage 25%
Adjusted assessed valuation 4,434,284,307
Debt limit (15% of assessed value) 665,142,646
Debt applicable to limit:
General obligation bonds -
Total net debt applicable to limit -
Legal debt margin 665,142,646 $
Legal Debt
Total net debt Legal Margin as a
Applicable to Debt Percentage of
Fiscal Year Debt Limit Limit Limit Debt limit
2015 415,952,346$ - $ 415,952,346$ 100% 2016 435,965,052 - 435,965,052 100% 2017 448,982,354 - 448,982,354 100% 2018 474,580,891 - 474,580,891 100% 2019 503,136,609 - 503,136,609 100% 2020 525,930,240 - 525,930,240 100% 2021 551,096,877 - 551,096,877 100% 2022 576,758,166 - 576,758,166 100% 2023 621,780,408 - 621,780,408 100% 2024 665,142,646 - 665,142,646 100% Note:
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation, however; this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel).
The computations shown above reflects a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local governments located within the state.
453
City of Murrieta
Demographic and Economic Statistics
Last Ten Fiscal Years
-151-
Personal Per Capita
Income* Personal Unemployment
Fiscal Population (In Thousands) Income Rate
Year (1) (3) (1) (1) (1) (2)
2015 113,795 3,053,592 $ 26,834 $ 5.4% 2016 114,914 3,091,951 26,906 4.8% 2017 114,904 3,178,810 27,662 5.0% 2018 118,125 3,350,224 28,361 3.5% 2019 115,561 3,568,992 30,884 3.3% 2020 115,172 3,731,498 32,399 8.8% 2021 111,183 4,047,908 36,408 5.8% 2022 109,998 4,220,667 38,370 3.3% 2023 109,177 4,582,265 41,970 3.8% 2024 109,177 N/A N/A N/A
N/A-Data not available
Source (1) The HdL Companies
(2) State of California Economic Development Department (3) State of California Department of Finance
454
City of Murrieta
Principal Employers
Current Year and Ten Years Ago
-152-
2024
Percentage
of Total City
Employer Employees Rank Employment
Murrieta Valley Unified School District 2,210 1 3.80% Rancho Springs Medical Center -SHS 1,788 2 3.07% Loma Linda University Medical Center 1,613 3 2.77% County of Riverside 939 4 1.61%
City of Murrieta 464 5 0.80%
Target (2 locations) 396 6 0.68%
Costco Wholesale 371 7 0.64%
The Springs Health and Rehabiliation Center 339 8 0.58% Oak Grove Center 325 9 0.56%
Walmart 301 10 0.52%
8,746 15.03%
Percentage
of Total City
Employer Employees Rank Employment
Murrieta Valley Unified School District 2,041 1 7.50% Rancho Springs Medical Center -SHS 1,474 2 5.42% Loma Linda University Medical Center 970 3 3.57% County of Riverside 889 4 3.27%
Oak Grove Center 380 5 1.40%
City of Murrieta 354 6 1.30%
Walmart 350 7 1.29%
Target (2 locations) 347 8 1.28%
Home Depot 295 9 1.08%
Sam's Club 200 10 0.74%
7,300 26.85%
Source:
Source:Muniservices, LLC/AvenuInsights&Analytics Source:2015,priorpublished ACFR
Resultsbasedondirectcorrespondencewithcity’slocalbusinesses. Note:AmazonFreshhasnotresponded toouremployee headcountinquires. 2015
455
City of Murrieta
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
-153-
Fiscal Years: 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function/Program
General government
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Administration² 38.25 38.70 39.00 40.00 41.38 41.00 50.50 51.00 51.00 61.00 Community Development
Economic Development 4.00 4.00 4.00 3.00 3.00 2.00 3.00 3.00 3.00 4.50 Planning 9.10 9.10 9.00 9.00 11.00 11.00 12.00 12.00 12.00 15.00 Building and Safety 8.20 8.20 8.00 9.00 9.00 9.00 14.00 12.00 12.00 14.00 Housing Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Code Enforcement¹ 5.00 5.00 5.00 5.00 5.00 5.00 6.00 7.00 7.00 9.00 Redevelopment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Police
Administration 2.00 2.00 2.00 2.00 2.00 3.00 2.00 2.00 2.00 2.00 Operations 66.00 66.00 64.00 64.00 61.00 60.00 80.00 89.50 90.50 80.50 PD Support 62.00 63.00 65.00 65.00 71.77 82.50 73.50 81.00 81.00 99.50 Fire
Administration (including Maintenance) 7.00 8.00 8.00 8.50 12.47 10.75 10.75 10.75 10.75 11.00 Fire Suppression (including Paramedics) 49.00 49.00 48.00 48.00 54.00 50.00 61.00 61.00 61.00 62.00 Fire Prevention/Inspection 1.00 1.00 4.00 4.00 5.00 4.00 6.00 7.00 7.00 7.00 Public Works
Admin/Engineering 8.80 8.80 13.00 13.00 11.00 11.00 25.00 29.00 29.00 20.00 Maintenance³ 15.80 15.80 13.00 13.00 21.00 20.00 21.00 21.00 21.00 17.00 Recreation & Community Services
Administration 12.65 12.65 12.00 12.00 10.00 12.00 1.00 2.00 2.00 3.00 Recreation 9.00 9.00 9.00 9.00 7.42 12.25 17.25 19.25 19.25 34.00 Library 12.20 12.20 12.00 12.00 16.41 16.59 18.59 18.59 18.59 21.59 Total Authorized Personnel * 315.00 317.45 320.00 321.50 346.45 355.09 406.59 431.09 432.09 466.09
* Excludes part-time Crossing Guards.
¹ Code Enforcement Division was moved to Development Services Department in FY 2018/19 ² City Manager, City Clerk, Finance, and Administrative Services departments Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Full-time-equivalent employment is calculated by dividing total labor hours by 2,080.
Source: City of Murrieta Annual Budget
³ Community Services Support staff were moved to the Public Works & Engineering Department in FY 2018/19, and this division was not reported on prior years.
Fiscal Year
456
City of Murrieta
Operating Indicators by Function/Program
Last Ten Fiscal Years
-154-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
Community development
Number of:
Business licenses (A) 4,631 5,051 4,442 4,796 4,744 5,054 4,992 4,434 4,543 4,518 Plan checks (B) 225 322 410 410 478 301 262 234 350 N/A Permits issued 2,379 2,933 2,395 2,815 2,869 2,603 3,128 3,434 3,700 3,600 NPDES inspections 101 293 349 403 445 568 247 69 655 655 Code violations (calendar basis) 4,313 5,898 6,946 5,378 4,072 2,447 1,940 1,700 1,737 1,777 Police
Number of:
Part 1 Crimes3
1,802 1,695 1,673 1,499 1,579 1,472 1,095 3,777 3,634 3,475 Crimes Against Persons 711 695 789
Crimes Against Property 2,143 2,249 2,007
Crimes Against Society 923 690 679
Parking violations 1,156 1,121 1,048 1,098 1,014 495 210 314 486 152 Traffic (moving) violations 5,208 4,994 3,703 3,439 3,332 3,532 3,917 3,768 2,701 5,092 Traffic Collision Reports 762 760 813 843 815 685 715 834 766 753 Crime reports 8,121 7,917 8,409 7,826 8,189 7,487 8,492 5,869 5,715 5,997 Arrests 3,077 2,445 2,134 2,216 2,031 1,911 2,221 1,895 1,632 1,652 Public works
Miles of:
Slurry Seal4 95 - 51 - - Street resurfacing/repair 46 1 2.8 - 0.5 3.3 1.9 - 2.20 1.54 Street sweeping 11,952 11,952 11,952 11,952 12,027 12,132 12,132 12,552 12,552 12,552 Number of:
Traffic signals maintained 93 93 92 96 96 99 100 101 105 110 Trees pruned per year 2,879 4,074 2,467 3,774 5,735 4,418 4,574 4,296 4,469 4,277 Trees/stumps removed 135 143 184 152 154 247 261 168 231 156 Greenwaste to Mulch (tons) 893 901 720 406 557 972 1,030 977 1,232 1,047 Recreation & community services
Number of enrollees/attendees:
Aquatics 1,5 6,450 6,600 6,750 7,638 3,888 2,197 - 628 3,282 493 Community services/seniors¹ 28,000 18,000 18,791 18,683 24,762 18,038 174 13,043 17,992 28,174 Small Recreation Centers6 2
Day camp¹ 415 450 637 826 810 508 88 473 473 333 Park programs¹ 1,825 1,208 1,115 1,375 972 1,895 1,423 2,719 2,719 7,963 Classes¹ 25,368 17,274 26,311 23,487 12,213 10,033 1,493 6,565 8,137 8,013 Special events¹ 25,000 58,000 58,900 55,500 64,193 43,741 18,449 66,740 62,900 75,435 Skate park2 6,452 1,098 2,521 3,178 2,545 2,857 - - - - Youth center¹ 22,308 21,042 20,360 18,900 20,270 16,444 4,991 8,645 16,789 20,655 N/A - Data not available
(A) - Includes new & renewal licenses, excludes temporary licenses (B) - Excludes temporary plan checks; FY23 data provided through February 2023 and will no longer be reported due to a change in software 4FY2021ͲDataunavailable priorto2020
5FY2024ͲTheaquaticsseasonfor2023wasclosedforJulyandAugust,buttheCityrentedahighschoolpoolandtheseasonthatstartedinJune2024. 6TheCityhashadtheSmallRecreationCentersbutdidnotstartreportingthemuntil2024.
Sources: Various city departments.
Fiscal Year
2FY2021ͲNolongermannedtocountattendanceperCouncildirectionMarch16,2020 3FY2021ͲInformationreportedisforJulyͲMarchduetomovetoNIBRS(National IncidentͲBasedReportingSystem);FY2022ͲIncreaseinnumbersdueto reportingaccordingtoNIBRSstandardswhichincludes over50typesofcrimesascomparedto8typesinprevious reporting ¹FY2021ͲDropinnumbersduetoclosuresinMidͲMarch2020forCOVIDͲ19;Poolclosedforsecondseasoninarow;poolreopened midͲJune2022;pool nonͲoperationalJune2023
457
City of Murrieta
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
-155-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
General Government
C i v i c C e n t e r 1 1 11111111
Innovation Center 1 1 1 1 1 11111
V e h i c l e s 8 1 0 1 01 41 0 5 5 1 11 11 0
Equipment 43 41 47 56 57 65 75 50 52 38
Community Development
V e h i c l e s 7 7 7897922 1 1
Public Safety
P o l i c e S t a t i o n s 1 1 11111111
Police Vehicles 107 120 120 127 127 145 160 125 140 132 Police Equipment 111 308 308 347 347 353 353 334 339 310 F i r e S t a t i o n s 5 5 55555555
Fire Vehicles 33 32 37 35 37 42 48 36 36 35
Fire Equipment 106 110 112 112 112 115 115 91 93 76
Public Works
Vehicles 22 27 27 29 27 19 20 30 30 36
Equipment 26 26 26 26 26 26 26 29 30 29
Culture and recreation
P a r k S i t e s 5 0 5 0 5 05 15 25 25 25 35 35 3
S e n i o r C e n t e r s 1 1 11111111
C o m m u n i t y C e n t e r s1 1 11111111
Y o u t h C e n t e r s 1 1 11111111
Equestrian Center 1 1 1 1 1 11111
Municipal Pools
1 1 1 11111111
P u b l i c L i b r a r y 1 1 11111111
Vehicles 23 23 25 26 23 25 13 10 11 7
Equipment 30 32 34 31 31 31 31 36 36 34
1 - FY 24 The pool is closed until renovations can take place. Timeline is TBD.
Sources:
Various city departments.
Fiscal Year
458
City of Murrieta
Single Audit Report on Federal Awards
Year Ended June 30, 2024
459
City of Murrieta
Single Audit Report on Federal Awards
Table of Contents
Page
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................. 1
Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards in Accordance with the Uniform Guidance ............................................... 3
Schedule of Expenditures of Federal Awards .............................................................................. 6
Notes to the Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs:
Section I: Summary of Auditor's Results ................................................................................ 8
Section II: Financial Statements Findings .............................................................................. 9
Section III: Federal Awards Findings and Questioned Costs ................................................. 9
Summary Schedule of Prior Audit Findings ............................................................................... 10
460
735 E. Carneg ie Dr . Suit e I 00
San Bernardino . CA 92408
909 889 0871 T
909 889 5361 F
ramscpa . net
PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)
MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
A nny Gonzalez, CPA