San Jacinto City Council
March 18, 2025

Goal PS-6: A comfortable community
environment that is free from excessive noise
pollution.
» Policy PS-6.1: Noise Exposure. Consider
the noise compatibility of existing and
future development when making land use
planning decisions. Require development and
infrastructure projects to be consistent with
the land use compatibility standards contained
in Tables PS-1, PS-2, PS-3 and PS-4 to ensure
acceptable noise exposure levels for existing
and future development.
» Policy PS-6.2: Noise Mitigation. Require new
development to mitigate excessive noise to
the standards indicated in Tables PS-1, PS-2,
PS-3 and PS-4 to the extent feasible through
best practices, including building location
and orientation, building design features,
placement of noise-generating equipment away
from sensitive receptors, shielding of noisegenerating equipment, placement of noisetolerant features between noise sources and sensitive receptors, and use of noise-minimizing
materials.
» Policy PS-6.3: Acoustical Studies. Require
acoustical studies for new discretionary
developments and transportation improvements
that have the potential to affect existing noisesensitive uses such as schools, hospitals, libraries, care facilities, and residential areas,
and for projects that would introduce new noisesensitive uses into an area where existing noise levels may exceed the thresholds identified
in this element. For projects that are required
to prepare an acoustical study, the following
mobile and stationary noise source criteria shall
be used to determine the significance of those
impacts.

Mobile Noise Sources:
a. Where existing traffic noise levels are within
or below the “normally acceptable” noise
criteria at the affected land use (see Table
PS-1), a readily perceptible 5 dBA CNEL or
greater increase in roadway noise will be
considered significant;
b. Where existing traffic noise levels falls
within the “conditionally acceptable” noise
criteria at the sensitive land use, a +3 dBA
CNEL or greater increase in roadway noise
levels will be considered significant; and
c. Where existing traffic noise levels exceed
the “conditionally acceptable” noise criteria
at the sensitive land use, a + 1.5 dBA CNEL
or greater increase in roadway noise levels
will be considered significant.

Stationary and Non-Transportation Noise
Sources:
a. A significant impact will occur if the project
results in an exceedance of the noise level
standards contained in this element, or the
project will result in an increase in ambient
noise levels by more than 3 dB, whichever
is greater.
» Policy PS-6.4: Roadway Noise. Encourage
nonmotorized transportation alternatives for
local trips and the implementation of noise
sensitivity measures in the public realm,
including traffic-calming road design, lateral
separation, natural buffers, and setbacks to
decrease excessive motor vehicle noise.
» Policy PS-6.5: Vehicular Traffic. Monitor and
enforce existing speed limits and motor vehicle
codes requiring adequate mufflers on all types
of vehicles traveling through the city.
» Policy PS-6.6: Commercial Noise. Require the
use of noise attenuation measures, including
screening and buffering techniques, for all new
commercial development expected to produce
excessive noise; in existing cases where the
City’s noise standards are exceeded, work with
Code Enforcement to require compliance.
» Policy PS-6.7: Construction Noise. Require
construction activities to reduce noise impacts
on adjacent uses to the criteria identified in
Tables PS-3 and PS-4, or, if the criteria cannot be
met, to the maximum extent feasible complying
with Chapter 8.40 of the San Jacinto Municipal
Code (Noise Control) and use best practices.

Construction activities outside of the permitted
construction hours identified in the San Jacinto
Municipal Code may be approved on a caseby-case basis by the Community Development Director.
» Policy PS-6.8: Temporary Special Events.

Temporary special events including, but not
limited to, festivals, concerts, parades, and other
similar activities may be allowed to exceed the
noise standards established in this General
Plan and the standards established by Chapter

8.40 of the San Jacinto Municipal Code (Noise
Control) through issuance of a temporary use
permit (see Section 17.640 of the San Jacinto
Municipal Code (Temporary Use Permits).

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Packet Pg. 302 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Five: Public Safety
77 » Policy PS-6.9: Temporary Emergency
Operations and Emergency Equipment
Usage. Temporary emergency operations or
emergency equipment usage is exempt from
noise standard criteria set by this element.
» Policy PS-6.10: Interjurisdictional Coordination.

Coordinate with neighboring cities to minimize
noise conflicts between land uses along the
City’s boundaries.
» Action PS-6a: Review Chapter 8.40 of the
San Jacinto Municipal Code and update as
necessary to ensure that the noise standards
are consistent with this General Plan, including
Tables PS-1, PS-2, PS-3, and PS-4 and to require
new residential, mixed-use with a residential
component, and other noise-sensitive
development to be designed to minimize noise
exposure to noise sensitive uses through
incorporation of site planning and architectural
techniques. The update shall also include noise
standards for residential uses within a mixeduse development, which may differ from other adopted residential noise standards.
» Action PS-6b: Review new development projects
for compliance with the noise requirements
established in this General Plan, including the
standards established in Tables PS-1, PS-2,
PS-3 and PS-4. Where necessary, require new
development to mitigate excessive noise through
best practices, including building location
and orientation, building design features,
placement of noise-generating equipment away
from sensitive receptors, shielding of noisegenerating equipment, placement of noisetolerant features between noise sources and sensitive receptors, and use of noise-minimizing
materials such as rubberized asphalt.
» Action PS-6c: Require acoustical studies for
all new discretionary projects, including those
related to development and transportation,
which have the potential to generate noise
impacts which exceed the standards identified
in this General Plan. The studies shall include
representative noise measurements, estimates
of existing and projected noise levels, and
mitigation measures necessary to ensure
compliance with this element.
» Action PS-6d: Review the locations of proposed
projects with the potential to generate stationary
noise in relation to sensitive receptors through
the discretionary project review process.

Limit delivery or service hours for stores and
businesses with loading areas, docks, or trash
bins that front, side, border, or gain access on
driveways next to residential and other noise
sensitive areas. Only approve exceptions if full
compliance with the nighttime limits of the
noise regulations is achieved.
» Action PS-6e: Require all construction activity to
comply with the limits (maximum noise levels,
hours and days of allowed activity) established
in the City noise regulations (Title 24 California
Code of Regulations, Noise Ordinance) in order
to reduce impacts associated with temporary
construction noise to the extent feasible. Trucks
associated with construction activities shall
follow the designated truck routes described in
the Mobility Element.
» Action PS-6f: Actively enforce the standards
identified within the City’s Noise Ordinance and
Noise Plan in order to reduce impacts to the
extent feasible. Update and amend the Noise
Ordinance and Plan as appropriate. Provide
a link on the City’s website for those to file
complaints against activities and uses that may
be violating the Noise Ordinance.
» Action PS-6g: Require new residential projects
located adjacent to railroad lines to follow the
FTA vibration screening distance criteria to
ensure that residential uses are not exposed to
vibrations exceeding 72 VdB for frequent events
(more than 70 events per day), 75 VdB for
occasional events (30-70 events per day), or 80
VdB for infrequent events (less than 30 events
per day).
» Action PS-6h: Require new development to
minimize vibration impacts to adjacent uses
during demolition and construction. Require
vibration studies for all new discretionary
projects, including those related to development
and transportation, which have the potential to
generate vibration impacts which exceeds the
vibration limits. This includes projects requiring
pile driving and/or construction on properties
adjacent to historic structures. For sensitive
historic structures, a vibration limit of 0.08 in/
sec PPV (peak particle velocity) will be used to
minimize the potential for cosmetic damage
to the building. A vibration limit of 0.30 in/
sec PPV will be used to minimize the potential
for cosmetic damage at buildings of normal
conventional construction.
» Action PS-6i: During subsequent updates to
Section 8.40 of the Muni Code, review and
update Section 8.40.090, Construction Activity
Noise Regulations, as needed in order to allow
provisions for emergency repairs, exceptional
circumstances, and reasonable Sunday
construction and maintenance activities, while
continuing to achieve the objectives of providing
a nuisance-free noise environment.

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Packet Pg. 303 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Five: Public Safety | Envision San Jacinto
78 Land Use 55 60 65 70 75 80
Residential
Hospitals, Nursing Homes,
Assisted Living
Hotels, Motels, Mixed Use
Churches
Schools, Libraries, Museums
Sports Arenas, Outdoor
Spectator Sports
Playgrounds, Neighborhood
Parks
TABLE PS-1: LAND USE COMPATIBILITY FOR COMMUNITY NOISE EXPOSURE (DBA, CNEL)

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Packet Pg. 304 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Five: Public Safety
79 Land Use 55 60 65 70 75 80
Golf Courses, Riding Stables,
Water Recreation, Cemetaries
Office Buildings, Businesses,
Industrial, Manufacturing,
Utilities, Agriculture
Normally Acceptable: Specified land uses is satisfactory based upon the assumption that any buildings involved are of normal conventional construction, without any special noise insulation or requirements.

Conditionally Acceptable: New construction or development should be undertaken only after a detailed analysis of the noise reduction requirements is made and needed insulation features included in the design. Conventional construction, but with closed windows and fresh air supply systems or air conditioning will normally suffice. Outdoor environment will seem noisy.

Normally Unacceptable: New construction and development should generally be discouraged. If new construction or development does proceed, a detailed analysis of the noise reduction requirements must be made with needed noise insulation features included in the design. Outdoor areas must be shielded.

Clearly Unacceptable: New construction and development should generally not be undertaken. Construction costs to make the indoor environment would be prohibitive and the outdoor environment would not be usable.

Source: California Office of Noise Control. Guidelines for the Preparation and Content of Noise Elements of the General Plan. February 2017.

Notes:

1. Where a proposed use is not specifically listed, the use shall comply with the standards for the most similar use as determined by the City.

2. Outdoor activity areas for residential development are considered to be the backyard patios or decks of single-family units and the common areas where people generally congregate for multi-family developments. Where common outdoor activity areas for multi-family developments comply with the outdoor noise level standard, the standard will not be applied at patios or decks of individual units provided noise-reducing measures are incorporated (e.g., orientation of patio/deck, screening of patio with masonry or other noise-attenuating material). Outdoor activitiy areas for non-residential developments are the common areas where people generally congregate, including pedestrian plazas, seating areas, and outside lunch facilities; not all residential developments include outdoor activity areas.

TABLE PS-1: LAND USE COMPATIBILITY FOR COMMUNITY NOISE EXPOSURE (DBA, CNEL) (CONTINUED)

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Packet Pg. 305 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Five: Public Safety | Envision San Jacinto
80 TABLE PS-2: MAXIMUM ALLOWABLE NOISE EXPOSURE FROM MOBILE NOISE SOURCES Land Use Noise Standards1
Exterior Interior
Residential – single-family, multi-family, duplex
and mobile home
65 dB(A) 45 dB(A)
Residential – transient lodging, hotels, motels,
nursing homes, hospitals, assisted care facilities
65 dB(A) 45 dB(A)
Private offices, churches, libraries, theaters,
concert halls, meeting halls, schools
65 dB(A) 45 dB(A)
General commercial, office, retail, reception,
restaurant
65 dB(A) 45 dB(A)
Light industrial2 --- ---
Parks and playgrounds3 65 dB(A) 50 dB(A)
Golf courses, outdoor spectator sports 70 dB(A) ---
Notes:

1. In Community Noise Equivalent Level (CNEL)

2. Noise standards do not apply to Light Industrial areas.

3. Outdoor environment limited to playground areas, picnic areas and other areas of frequent human use.

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Packet Pg. 306 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Five: Public Safety
81 Type of Land Use Allowed Equivalent Noise Level, dBA Leq2
(Exterior)
Allowed Equivalent Noise Level, dBA
Leq2 (Interior)
7:00 a.m. to
10:00 p.m.
10:00 p.m. to
7:00 a.m.
7:00 a.m. to
10:00 p.m.
10:00 p.m. to
7:00 a.m.

All single-family residential properties 65 45 45 40
All multifamily residential properties and
mobile home parks
65 50 45 40
All commercial property 65 60 45 40
The residential portion of mixed-use
properties
70 70 45 40
All manufacturing or industrial properties and
all other uses
70 70 -- --
Source: City of San Jacinto Municipal Code 8.40.040
Notes:

1. If the ambient noise level exceeds the resulting standard, the ambient noise level shall be the standard.

2. Measurements for compliance are made on the affected property pursuant to Municipal Code Section 8.40.160.

3. It is unlawful for any person at any location within the incorporated area of the city to create noise, or to allow the creation of any noise on property owned, leased, occupied, or otherwise controlled by such person, which noise causes the noise level, when measured at any location on any other property, to exceed either of the following:
a. The noise standard for the applicable zone for any fifteen (15) minute period; b. A maximum instantaneous (single instance) noise level equal to the value of the noise standard plus twenty (20) dBA for any period of time (measured using A-weighted slow response).

4. In the event the ambient noise level exceeds the noise standard, the maximum allowable noise level under such category shall be increased to reflect the maximum ambient noise level.

5. The residential portion of mixed-use properties standard shall apply to that portion of residential property falling within one hundred (100) feet of a commercial property or use if the noise originates from that commercial property or use.

6. If the measurement location is on a boundary between two different types of land uses, the lower noise level standard applicable to types of land uses shall apply.

TABLE PS-3: ALLOWABLE EXTERIOR/INTERIOR NOISE LEVEL DUE TO STATIONARY NOISE SOURCES1

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Packet Pg. 307 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Five: Public Safety | Envision San Jacinto
82 Climate Change and Resiliency Planning
The impacts of climate change pose an increasing
and growing challenge to the safety and well-being
of the residents of San Jacinto. California will
continue to experience effects of climate change
in different ways, including increased likelihood
of drought, heat waves, severe weather, flooding,
and wildfires. In addition to climate change
planning becoming necessary on its own merits,
Senate Bill 379 requires San Jacinto to update the
Public Safety Element to address adaptation and
resilience strategies applicable to the City.

San Jacinto’s General Plan provides strategies to
reduce human-caused greenhouse gas emissions
and enhance carbon storage, or sequestration, as
a local response to mitigate global climate change
and comply with state and federal legislation.

Goal PS-7: A resilient, sustainable, and equitable
community where risks to life, property, the
economy, and the environment resulting from
climate change, including extreme weather
events, are minimized.
» Policy PS-7.1: Community Preparedness.

Promote a well-prepared City that can effectively
overcome natural disasters and scarcity of
resources due to climate change.
» Policy PS-7.2: Collaboration. Collaborate with
local, regional, state and/or federal jurisdictions
and agencies on climate resiliency and
adaptation strategies.
» Policy PS-7.3: Ecological Recovery. Coordinate
with federal, state, and local agencies to
establish ecological recovery programs.
» Policy PS-7.4: Air Pollution. Work with
responsible federal, state, and county agencies
to decrease air pollution emissions occurring
within the air basin to reduce the risk posed by
air pollution.
» Policy PS-7.5: Energy Supply. Promote plans
and programs that increase sustainable energy
sources.
» Policy PS-7.6: Programs. Implement necessary
actions and programs to improve drought
preparation and response for the most
vulnerable community members.
» Policy PS-7.7: Cooling Centers. Designate
public buildings, specific private buildings,
or institutions with air conditioning as public
cooling shelters; extend hours at air-conditioned
sites during periods of extreme heat or power
outage (if the site is supported by a backup
generator).
» Policy PS-7.8: Storms. Provide access to flood
protection resources and services (signage,
sandbags, etc.) as feasible at designated public
facilities during and after extreme weather
events.
» Policy PS-7.9: Special Assistance. Address
the needs of individuals with limited mobility or
limited access to transportation for access to
safe and comfortable shelter during extreme
heat events or other severe weather events.
» Policy PS-7.10: Leadership. Demonstrate
leadership in local climate planning efforts
through a range of tangible actions and policies
at the municipal operations level.

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Packet Pg. 308 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Five: Public Safety
83 » Policy PS-7.11: Greenhouse Gas Reductions.

Reduce communitywide greenhouse gas
emissions locally by actively supporting regional
efforts to reduce greenhouse gases throughout
the county.
» Policy PS-7.12: Extreme Heat Vulnerabilities.

Require that new developments, major
remodels, and redevelopments address urban
heat island issues and reduce urban heat
island effects for the proposed project site and
adjacent properties.
» Policy PS-7.13: Urban Forestry Plan. Minimize
damage associated with wind-related hazards
and address climate change and urban heat
island effects through the development of an
urban forestry plan and proper landscaping
planting and management techniques.
» Policy PS-7.14: Ongoing Monitoring. Monitor
climate change-related effects with local,
regional, state, and/or federal partners to
provide information of effectiveness of existing
infrastructure and programs.
» Action PS-7a: Provide information and resources
to the public and businesses regarding steps
the City is taking to address the issue of climate
change.
» Action PS-7b: Expand the use of energy-efficient
lighting, such as LEDs, for City-owned light
facilities.
» Action PS-7c: Consider purchasing only electric
or alternative-energy vehicles for the City vehicle
fleet, as appropriate, based on the intended use
of the vehicle.
» Action PS-7d: Evaluate the feasibility for
government-constructed and/or -operated new
development to exceed the CalGreen Tier 1, or
successor program, standards.
» Action PS-7e: Promote the use of sustainable
and carbon-neutral energy sources in new
development.
» Action PS-7f: Explore using renewable energy
and clean generation technologies such as
solar, wind, biogas, or fuel cells to power City
facilities where appropriate.

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Packet Pg. 309 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Five: Public Safety | Envision San Jacinto
84 Looking Ahead
As San Jacinto looks to the future, State law requires the City to consider climate impacts facing California as well as methods to adapt and increase resiliency to climate change effects. As a result of climate change, San Jacinto may experience more intense and frequent heat waves, drought, and wildfires, and more severe storms and extreme weather events.

Emissions scenarios used in the General Plan and Environmental Impact Report are the same as those used by the Intergovernmental Panel on Climate Change’s Fifth Assessment Report and are called Representative Concentration Pathways, or RCPs. There are four RCPs: 2.6, 4.5, 6.0, and

8.5. Each represents a set of possible underlying socioeconomic conditions, policy options, and technological considerations, spanning from a low-end scenario that requires significant emissions reductions resulting in zero global emissions by 2080 (RCP 2.5) to a high-end, “business-as-usual,” fossil-fuelintensive emissions scenario (RCP 8.5). The low-end scenario is most closely aligned with California’s ambitious greenhouse gas reduction targets and the aspirational goals of the United Nations Framework Convention on Climate Change 2015 Paris Agreement. Thus far, global emissions continue to follow the business-as-usual trajectory.

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Packet Pg. 310 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Five: Public Safety
85 UV79
Ramona Expy
Kirby St
Ramona Expy
Soboba Rd
Mountain Ave
M eridian St
Soboba Rd
State St
Palm
Ave
Washington Ave
Cottonwood Ave
Esplanade Ave
State St
Hewitt St
Park Ave
Ramona Expy
Main St
Commonwealth Ave
Lyon Ave
Seventh St
Ramona Blvd
Camino los Banos
7th St
Record Rd
Odell Ave
Sanderson Ave
Cawston Ave
Pott
er Rd
Warren Rd
Ramona Expy
Lake Park Dr
Hemet
Beaumont
Figure PS-1.

Geologic and Seismic
Hazards
City of San Jacinto
San Jacinto Sphere of
Influence
Neighboring City
Earthquake Fault
Alquist-Priolo Fault Zone
Riverside County Fault
Zone
0 ½ 1
Miles
San Jacinto River
Data sources: US Geological Survey; Riverside County GIS; USGS NHD.

Created by De Novo Planning Group for the City of San Jacinto, March 2023.

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Packet Pg. 311 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Five: Public Safety | Envision San Jacinto
86 UV79
Ramona Expy
Kirby St
Ra
mona
Expy Soboba Rd
Mountain Ave M eridian St Soboba Rd
State St
Palm Ave
Washington Ave
Cottonwood Ave
E
s
p
lana
de Av
e
State St
Hewitt St
Park Ave
Ramona Expy
Main St
Co
mmo
n
w
e
a
l
t
h
Av
e
Lyon Ave
Seventh St
Ramona Blvd
Camino los Banos
7th St
Record Rd
Odell Ave
Sanderson Ave
Cawston Ave
Pott er Rd
Warren Rd
Ramona Expy
Lake Park Dr
Hemet
Beaumont
Figure PS-2.

Fire Hazard Severity
Zones
City of San Jacinto
San Jacinto Sphere of
Influence
Neighboring City
Fire Hazard Severity Zones in
State Responsibility Areas
Moderate
High
Very High
Fire Hazard Severity Zones in
Local Responsibility Areas
Very High
0 ½ 1
Miles
San
Jacinto
River
Data sources: CalFire; California Office of the Fire Marshall; Riverside County GIS; USGS NHD.

Created by De Novo Planning Group for the City of San Jacinto, March 2023.

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Packet Pg. 312 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Five: Public Safety
87 UV79
Ramona Expy
Kirby St
Ramona Expy
Soboba Rd
Mountain Ave
M eridian St
Soboba Rd
State St
Palm
Ave
Washington Ave
Cottonwood Ave
Esplanade Ave
State St
Hewitt St
Park Ave
Ramona Expy
Main St
Commonwealth Ave
Lyon Ave
Seventh St
Ramona Blvd
Camino los Banos
7th St
Record Rd
Odell Ave
Sanderson Ave
Cawston Ave
Pott
er Rd
Warren Rd
Ramona Expy
Lake Park Dr
Hemet
Beaumont
Figure PS-3.

FEMA Flood Map
City of San Jacinto
Neighboring City
San Jacinto Sphere of
Influence
FEMA Designation
100-year Flood Zone
500-year Flood Zone
Regulatory Floodway
Area with Reduced
Risk due to Levee
Area of Undetermined
Flood Hazard
Area of Minimal Flood
Hazard
0 ½ 1
Miles
San Jacinto River
Data sources: FEMA 2022; Riverside County GIS; USGS NHD.

Created by De Novo Planning Group for the City of San Jacinto, March 2023. unshaded

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Packet Pg. 313 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Five: Public Safety | Envision San Jacinto
88 UV79
Ramona Expy
Kirby St
Ra
mona
Expy Soboba Rd
Mountain Ave M eridian St Soboba Rd
State St
Palm Ave
Washington Ave
Cottonwood Ave
E
s
p
lana
de Av
e
State St
Hewitt St
Park Ave
Ramona Expy
Main St
Co
mmo
n
w
e
a
l
t
h
Av
e
Lyon Ave
Seventh St
Ramona Blvd
Camino los Banos
7th St
Record Rd
Odell Ave
Sanderson Ave
Cawston Ave
Pott er Rd
Warren Rd
Ramona Expy
Lake Park Dr
Hemet
Beaumont
Figure PS-4.
2040 Noise Contour
Levels
City of San Jacinto
San Jacinto Sphere of
Influence
Neighboring City
Noise Levels in dB(A)
60 - 65
65 - 70
70 - 75
>= 75
0 ½ 1
Miles
Data sources: MD Acoustics.

Created by De Novo Planning Group for the City of San Jacinto, March 2023.

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Packet Pg. 314 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Five: Public Safety
89 UV79
Ramona Expy
Kirby St
Ramona Expy
Soboba Rd
Mountain Ave
M eridian St
Soboba Rd
State St
Palm
Ave
Washington Ave
Cottonwood Ave
Esplanade Ave
State St
Hewitt St
Park Ave
Ramona Expy
Main St
Commonwealth Ave
Lyon Ave
Seventh St
Ramona Blvd
Camino los Banos
7th St
Record Rd
Odell Ave
Sanderson Ave
Cawston Ave
Pott
er Rd
Warren Rd
Ramona Expy
Lake Park Dr
Hemet
Beaumont
Figure PS-5.

Existing Uses and
Very High Fire Hazard
Severity Zones
City of San Jacinto
Neighboring City
San Jacinto Sphere of
Influence
Very High Fire Hazard
Severity Zones (State
Responsibility Areas)
Very High Fire Hazard
Severity Zones (Local
Responsibility Areas)
Existing Use
Agricultural-NonPreserved
Agricultural-Preserved
Commercial
ED - Educational
Open Space
Public Facility
Residential-Single Family
Residential-Multi-Family
Residential-Mobile Home
Vacant Lands
0 ½ 1
Miles
San Jacinto River
Data sources: CalFire; California Office of the Fire Marshall; Riverside County GIS; USGS NHD.

Created by De Novo Planning Group for the City of San Jacinto, March 2023.

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Packet Pg. 315 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040)

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Packet Pg. 316 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040)

RESOURCE

MANAGEMENT
Chapter Six
San Jacinto is home to a number of special
resources that require attention and
management as the City continues to grow.

These resources can be natural (for example,
biological resources or water resources) or
man-made (such as parks, infrastructure
systems, or community facilities). Together,
the City’s resources form an important part
of the City’s unique character and quality of
life. It is important to understand, document,
and appreciate these resources so that these
valuable pieces of the community can be
preserved, protected, and enhanced for future
generations.

Element Organization
The Resource Management Element will address each of the topics below as they relate to San Jacinto. The goals and policies of this element are organized around the following topics:
• Natural Resources
• Water Resources
• Heritage Resources
• Air Quality and Greenhouse Gas Emissions
• Energy and Mineral Resources
• Public Safety Resources
• Parks and Recreational Resources
• Educational Resources
• Infrastructure Planning
• Solid Waste Management and Recycling
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Packet Pg. 317 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Six: Resource Management | Envision San Jacinto 92 Natural Resources
Situated along the foothills of the San Jacinto
Mountains, the City is home to remarkable
natural resources such as the San Jacinto
River, extensive open space areas, natural
landforms and viewscapes, and biological
resources. In a region that is expected to
continue accommodating new development
over time, special consideration must be given
to maintaining the natural resources that
make San Jacinto such a special place to live,
work, and visit. The General Plan recognizes
the importance of protecting and enhancing
natural resources to meet the needs of the
City’s residents for years to come.

Goal RM-1: A community that conserves and
protects its natural resources.
» Policy RM-1.1: Balanced Open Space System.

Support a balanced and integrated open space
system that reflects a variety of considerations,
including resource conservation, recreation,
aesthetics, and community identity.
» Policy RM-1.2: Scenic Resources. Encourage the
preservation of San Jacinto’s scenic resources,
including mature trees, rock outcroppings,
hillsides, ridgelines, and other prominent natural
landforms, to the extent practical.
» Policy RM-1.3: Biological Resource Protection.

Preserve and enhance biological communities
that contribute to the region’s biodiversity, with
a special focus on sensitive, rare, or endangered
plant and wildlife species in accordance with
state and federal resource agency requirements.
» Policy RM-1.4: Regional Cooperation. Recognize
areas of overlapping jurisdiction with respect to
open space and biological resources, such as
the County of Riverside Multiple Species Habitat
Conservation Plan (MSHCP), and coordinate the
City’s actions with efforts of surrounding cities,
agencies, and Riverside County to protect and
maximize regional open space.
» Policy RM-1.5: Hillside Development. Require
the orderly development of hillside areas
through compliance with the City’s Hillside
Development Ordinance.
» Policy RM-1.6: Native Vegetation. Conserve
existing native vegetation where possible and
integrate regionally native plant species into
development and infrastructure projects where
appropriate.
» Action RM-1a: Work with public and private
agencies to explore the joint venture use and
management of open space areas.
» Action RM-1b: Coordinate with public and private
organizations to provide revenue generating
open space uses such as golf courses and
environmental banking sites as a way to produce
revenue to protect open space and natural
resources. Work with local and regional partners
to advertise potential revenue-generating open
space opportunities in San Jacinto. Identify
potential sites for revenue-generating open
space uses on the City’s website.
» Action RM-1c: Work closely with the U.S.

Army Corps of Engineers (ACOE), U.S. Fish
and Wildlife Service (FWS), and the California
Department of Fish and Wildlife (CDFW) during
the discretionary project permitting and CEQA
review of any project that may result in the
alteration of a stream bed, involve the removal
of vegetation in wetland and riparian habitats,
disturb Waters of the United States or otherwise
impact sensitive biological resources.

3.A.8.c
Packet Pg. 318 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Six: Resource Management
93 » Action RM-1d: Cooperate with the County of
Riverside to develop and manage preserve areas
within the urban landscape. During the review
of development proposals, use the Western
Riverside County MSHCP Habitat Conservation
Plan (particularly Section 3.2.13 San Jacinto
Valley Area Plan) to help assess potential
project impacts and mitigation requirements.

Development in the City shall be required to
comply with the applicable terms of the MSHCP
including, but not limited to, the payment of
mitigation fees, narrow endemic surveys,
riparian/riverine policy, and other applicable
surveys. Projects located within criteria cell
areas shall be reviewed through the MSHCP
Joint Project Review as appropriate.
» Action RM-1e: For Hillside Development Projects,
implement the City’s Hillside Development
Standards to retain the significant hillsides and
ridgelines on San Jacinto’s eastern and western
borders as Open Space, allowing areas of nonintensive development on the more gently sloped areas at the base of the eastern and
western hillsides.
» Action RM-1f: During the development review
process, ensure proper geotechnical and soil
management techniques are implemented.

To enforce this, the City Engineer or Director
may request the completion of a survey of soil
and geologic conditions by a State licensed
Engineering Geologist and Civil Engineer, where
appropriate. When potential geologic impacts
are identified, require project applicants to
mitigate the impacts per the recommendations
contained within the survey.
» Action RM-1g: Where feasible, incorporate open
space and passive recreational uses into areas
identified to have significant hazards related
to flooding, geologic conditions, and seismic
events.
» Action RM-1h: Identify local scenic routes and
vistas and explore developing guidelines for
development visible from these scenic routes to
minimize impacts to scenic vistas.
» Action RM-1i: During the development review
process, require Applicants of developments
with the potential to reduce or eliminate
habitat for native plant and wildlife species or
sensitive habitats not covered by the MSHCP,
as determined by the City of San Jacinto’s
Community Development Department, to
prepare a site-specific general biological
resources survey to identify the presence of
any sensitive biological resources, including any
sensitive plant or wildlife species. The report
shall identify the need for focused presence/
absence surveys and identify the presence
of state or federal regulated wetlands or
waters. Required surveys shall be conducted
by qualified biologists and/or botanists in
accordance with California Department of Fish
and Wildlife (CDFW) and/or United States Fish
and Wildlife Services (USFWS) survey protocols
for target species. If no sensitive species are
observed during the field survey then no further
mitigation will be required. If sensitive species
or habitats, including wetlands are documented
on the project site, the project applicant shall
comply with the applicable requirements of the
regulatory agencies and shall apply mitigation
determined through the agency permitting
process.
» Action RM-1j: Where feasible, vegetation and
tree removal should occur outside of the bird
nesting season (February 1 to August 31). If
not feasible, the project applicant shall retain
a qualified biologist to conduct a nesting bird
survey no more than three days prior to the
commencement of construction activities. The
biologist conducting the clearance survey shall
document the negative results if no active bird
nests are observed on the project site or within
the vicinity during the clearance survey with a
brief letter report, submitted to the City of San
Jacinto Community Development Department
prior to construction, indicating that no
impacts to active bird nests would occur before
construction can proceed. If an active avian
nest is discovered during the pre-construction
clearance survey, construction activities shall
stay outside a 300-foot buffer around the active
nest. For listed and raptor species, this buffer
shall be 500 feet. A biological monitor shall
be present to delineate the boundaries of the
buffer area and to monitor the active nest to
ensure the nesting behavior is not adversely
affected by construction activity, pursuant to
the Migratory Bird Treaty Act (MBTA). Prior to
the commencement of construction activities
and the issuance of any permits, results of the
pre-construction survey and any subsequent
monitoring shall be provided to the City of San
Jacinto Community Development Department,
California Department of Fish and Wildlife
(CDFW), and other appropriate agencies.

3.A.8.c
Packet Pg. 319 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Six: Resource Management | Envision San Jacinto 94 Water Resources
Water is an indispensable resource that is
integral to San Jacinto’s prosperity and growth.

The City recognizes its role as steward to a
number of important water resources in the
region, including the San Jacinto River and San
Jacinto Groundwater Basin. The City embraces
an integrated water management approach in
order to preserve these precious resources for
years to come.

Goal RM-2: A community that protects and
conserves limited water resources.
» Policy RM-2.1: Regional Cooperation. Cooperate
with federal, State, and county governments,
and other agencies on the maintenance and
improvement of the quality and quantity of local
and regional groundwater resources.
» Policy RM-2.2: Groundwater Management.

Protect aquifers within the Basin and encourage
groundwater recharge.
» Policy RM-2.3: Conservation. Promote
residential, commercial, and institutional
water conservation strategies using multiple
innovative strategies and contemporary best
practices.
» Policy RM-2.4: Natural Conditions. Encourage
development that avoids impacts to watershed
areas, wetlands, natural drainage channels,
riparian areas, and creeks, retaining these
resources in their natural condition if feasible.
» Policy RM-2.5: Stormwater. Work cooperatively
with local water agencies to effectively and
efficiently manage stormwater runoff as part
of the City’s multipronged water conservation
strategy.
» Policy RM-2.6: Septic Systems. Discourage
the use of septic systems to reduce potential
negative impacts to groundwater.
» Policy RM-2.7: Reclaimed Water. Promote
the expanded use of reclaimed water, where
feasible.
» Action RM-2a: To reduce soil erosion and
pollutants in urban runoff, require new
development and redevelopment projects control
stormwater runoff through implementation
of Best Management Practices (BMPs) to
prevent any deterioration of water quality
that would impair subsequent or competing
uses of the water. Existing development shall
control stormwater runoff so as to prevent any
deterioration of water quality that would impair
subsequent or competing uses of the water. As
specific development projects are implemented,
project proponents will be required to consult
with relevant agencies such as the U.S. Army
Corps of Engineers (ACOE), Regional Water
Quality Control Board (RWQCB), and the
California Department of Fish and Game (CDFG).

Also, ensure that projects of one acre or more
complete a Storm Water Pollution Prevention
Plan (SWPPP) pursuant to California Regional
Water Quality Control Board (RWQCB) Santa
Ana Region – Order No. 00-65 and the City’s
MS4 permit (order no. R8-2002-0011 (NPDES
No. CAS 618033).
» Action RM-2b: Cooperate with the Regional
Water Quality Control Board to develop a plan to
assist agricultural operations to reduce nitrate
and sediment input to surface waters. Such
a plan will enhance water quality and benefit
aquatic plants and wildlife within the planning
area as well as downstream.
» Action RM-2c: In cooperation with the state,
regional, and local water agencies and suppliers,
participate in programs that seek to expand
the availability and use of recycled water for
irrigation where feasible and legally permitted.

Specifically, support the expansion of the use
of recycled water for urban and agricultural
irrigation. Cooperate with these agencies to
establish standards and regulations for the use
of recycled water in development projects.

3.A.8.c
Packet Pg. 320 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Six: Resource Management
95 » Action RM-2d: Work with the water districts
and private developers to encourage water
conservation in the following ways:
• Implementing aquifer and groundwater
recharge programs
• Participating in water conservation
programs operated by the local and regional
water districts
• Establishing water conservation education
programs
• Requiring the use of drought resistant plant
species in landscaping for public and private
areas, including parks and recreational
facilities, in accordance with the Water
Efficient Landscaping requirements.
• Expanding the production and use of
reclaimed water
• Requiring the incorporation of water
conservation devices, including low flush
toilets, flow restriction devices, and water
conserving appliances in both new public
and private development projects and
rehabilitation projects.
» Action RM-2e: Through the development review
process, require that sufficient water supply
and water infrastructure capacity is available to
serve the development prior to approval of the
project, pursuant to Water Code Section 10910
and Government Code Section 66473.7.
» Action RM-2f: Whenever feasible, incorporate
improved open space and preservation areas
and quasi-active recreation facilities in areas
used for ground water recharge and/or drainage
detention.
» Action RM-2g: During the development review
process, the City shall allow new septic systems
only for low density projects if they have met the
RWQCB’s minimum lot size requirement of onehalf acre per subsurface disposal system and where sewer connection is infeasible.
» Action RM-2h: Continue to encourage the
conversion from existing septic systems to
sewer by limiting the replacement or expansion/
repair of existing septic systems as feasible.

3.A.8.c
Packet Pg. 321 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Six: Resource Management | Envision San Jacinto 96 Heritage Resources
San Jacinto has a rich history dating back to the
area’s first inhabitants more than 10,000 years
ago. The City’s paleontological, archeological,
historical, and tribal cultural resources help
define the community and offer opportunities
for cultural, educational, and community
enrichment. The City encourages the protection
and enhancement of these resources for
generations to come.

Goal RM-3: A community that celebrates and
preserves its rich culture and historic assets.
» Policy RM-3.1: Preservation. Protect areas
containing significant historic, archaeological,
paleontological and tribal cultural resources,
as defined by the California Public Resources
Code.
» Policy RM-3.2: Cultural Reminders. Seek to
incorporate reminders of San Jacinto’s culture
in the built and natural environment through
adaptive reuse, signage, markers, and other
reminders of San Jacinto’s heritage.
» Policy RM-3.3: Public Education. Educate and
actively involve the public in preserving cultural
assets, including techniques, incentives, and
legal requirements for preservation.
» Policy RM-3.4: Tribal Consultation. Consult with
Native American tribes whose tribal cultural
resources may be impacted by proposed
development, as necessary, and in accordance
with state, local, and tribal intergovernmental
consultation requirements, in an effort
to mitigate or avoid significant effects to
resource(s).
» Policy RM-3.5: Public Art. Promote the use
of public art that celebrates the diverse and
culturally rich history of San Jacinto at key
gateways, major projects, and public gathering
places.
» Policy RM-3.6: Historic Preservation. Identify,
designate, and protect buildings, districts,
eligible properties and sites of historic
importance within San Jacinto.
» Policy RM-3.7: Funding. Identify funding
programs to assist private property owners in
the preservation of historic resources.
» Action RM-3a: Continue to assess development
proposals for potential impacts to sensitive
historic, archaeological, and paleontological
resources pursuant to the California
Environmental Quality Act (CEQA).
» Action RM-3b: For structures that potentially
have historic significance, the City shall require
that a study be conducted by a professional
archaeologist or historian to determine the
actual significance of the structure and
potential impacts of the proposed development
in accordance with CEQA Guidelines Section
15064.5. The City may require modification
of the project and/or mitigation measures to
avoid any impact to a historic structure, when
feasible, such as retaining or rehabilitating
historic buildings pursuant to City of San Jacinto
guidelines or relocating the historic building as
feasible.
» Action RM-3c: For all development proposals
within areas with the potential to contain
prehistoric/historic resources, the City shall
require a study to be conducted by a professional
archaeologist. The objective of the study will
be to determine if significant archaeological
resources are potentially present and if the
project will significantly impact these resources.

If significant impacts are identified, the City
may require the project to be modified to avoid
the impacts, or require mitigation measures to
mitigate the impacts. Mitigation may involve
archaeological investigation and resources
recovery

3.A.8.c
Packet Pg. 322 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Six: Resource Management
97 » Action RM-3d: For projects that involve ground
disturbing activities on native soil, prior to the
issuance of a grading permit, the developer shall
enter a Treatment and Disposition Agreement
(TDA) with the Soboba Band of Luiseño
Indians to address treatment and disposition
of archaeological/cultural resources and
human remains associated with Soboba Band
of Luiseño Indians that may be uncovered or
otherwise discovered during construction of
the project. The TDA may establish provisions
for tribal monitors. Following execution of the
TDA by the developer and Soboba Band of
Luiseño Indians, the TDA will be incorporated by
reference into the grading permit.
» Action RM-3e: The City shall require
an assessment of the potential for
development proposals to significantly
impact paleontological resources pursuant
to the California Environmental Quality Act
Guidelines. If the project involves earthworks,
the City may require a study conducted by a
professional paleontologist to determine if
paleontological assets are present, and if the
project will significantly impact the resources.

If significant impacts are identified, the City
may require the project to be modified to avoid
impacting the paleontological materials, require
monitoring of rock units with high potential to
contain significant nonrenewable paleontologic
resources, or require mitigation measures to
mitigate the impacts, such as recovering the
paleontological resources for preservation.
» Action RM-3f: The City shall make provisions
for historic archeological resources accidentally
discovered during construction for projects
where the City has approval authority over
the project. These provisions shall include
an immediate evaluation of the find and
contingency funding and time allotment
sufficient to allow for the recovery of the historic
archeological resource or implement measures
to avoid disturbing the resource if the historic
archeological resource is determined to be
unique.
» Action RM-3g: In the event of discovery or
recognition of any human remains in any
location other than a dedicated cemetery, the
City shall halt excavation or disturbance of the
site or any nearby area reasonably suspected
to overlie adjacent human remains until the
County Coroner has been informed and has
determined that no investigation of the cause of
death is required. If the remains are of Native
American origin, there shall be no further
excavation or disturbance of the site or any
nearby area reasonably suspected to overlie
adjacent human remains until the descendants
from the deceased Native Americans have
made a recommendation to the landowner or
the persons responsible for the excavation
work, regarding appropriate means of treating
the ancestral remains, with appropriate dignity,
including the human remains and any associated
grave goods as provided in Public Resources
Code section 5097.98, or the Native American
Heritage Commission was unable to identify a
descendant or the descendant failed to make
a recommendation within 24 hours after being
granted access to the site.
» Action RM-3h: Prior to the adoption or substantial
amendment of a general plan or specific plan,
the City shall refer the proposed action to those
tribes that are on the NAHC contact list and
have traditional lands located within the City’s
jurisdiction for a 45 day comment period.
» Action RM-3i: Prior to the adoption or substantial
amendment of a general plan or specific plan,
the City shall refer the proposed action to those
tribes that are on the NAHC contact list and
have traditional lands located within the City’s
jurisdiction for a 45 day comment period.
» Action RM-3j: Prior to designating open space,
the City shall consult with tribes if the affected
land contains a cultural place and if the
affected tribe has requested public notice under
Government Code section 65092.
» Action RM-3k: Promote public awareness
and encourage tourism in the City by actively
identifying and enhancing the community’s
historic resources through the location of
historic landmark plaques and a Historic Tour
Guide. Promote tours of these sites on the City’s
and other organization’s websites.
» Action RM-3l: Continue to support the
improvement and enhancement of the Estudillo
Mansion and expand opportunities for public
access and use of the historic treasure.
» Action RM-3m: Develop and implement
architectural standards and historical
preservation guidelines for development and
redevelopment in the Downtown Village area
of the community. Use housing and façade
rehabilitation programs to support development
and redevelopment activities that preserve and
complement historic structures and resources
in the downtown.
» Action RM-3n: Develop and implement programs
and/or incentives to private property owners
to help preserve, restore, or reuse historic
structures while enhancing their historical
significance and integrity.
» Action RM-3o: Conduct a historic properties
inventory that takes into consideration buildings,
neighborhoods, and other features of historic,
architectural, or cultural significance.

3.A.8.c
Packet Pg. 323 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Six: Resource Management | Envision San Jacinto 98 Air Quality and Greenhouse Gas
Emissions
Improved air quality within the City will improve
the quality of life of residents, workers, and
visitors. Air quality is especially important due
to the City’s location in the South Coast Air
Basin (SCAB), which does not presently meet
state and federal air quality standards. Regional
cooperation among all agencies in the basin is
necessary to achieve desired improvements
to air quality. San Jacinto can participate and
contribute its share by reducing local emissions
through proper planning for land use and
transportation.

Goal RM-4: Improved air quality in San Jacinto
and the region through reductions in air
pollutants and greenhouse gas (GHG) emissions.
» Policy RM-4.1: Regional Cooperation.

Support regional efforts, including those
organized through the South Coast Air Quality
Management District (SCAQMD), the Southern
California Association of Governments (SCAG),
the Western Riverside Council of Governments
(WRCOG), and the California Air Resource Board
(CARB) to implement the regional Air Quality
Management Plan.
» Policy RM-4.2: Measurement and Enforcement.

Coordinate with the California Air Resources
Board (CARB) and South Coast Air Quality
Management District to support their ability to
properly measure air quality at emission sources
and enforce the standards of the Clean Air Act.
» Policy RM-4.3: GHG Emissions. Align the City’s
local GHG reduction targets with the statewide
GHG reduction targets of Assembly Bill 32,
and align the City’s GHG reduction goal with
the statewide GHG reduction goal of Executive
Order S-03-05.
» Policy RM-4.4: Transportation Options.

Promote alternative modes of transportation
to reduce vehicular emissions and improve air
quality. (See Mobility Element)
» Policy RM-4.5: Walkability. Encourage
pedestrian-scale development and pedestrianfriendly design features to reduce vehicle emissions. (See Mobility Element)
» Policy RM-4.6: Sustainable Development.

Encourage and incentivize higher density and
mixed-use development opportunities within
designated areas of the City to lessen the
impacts of traffic congestion on local air quality.
(See Land Use Element)
» Policy RM-4.7: Sensitive Receptors. Insulate
sensitive receptors from areas of heightened air
quality pollution, by utilizing land use planning to
buffer and protect residential areas.
» Policy RM-4.8: Mitigation. Require the
implementation of relevant mitigation measures
for all future development upon identification of
potential air quality impacts.
» Policy RM-4.9: Local Reduction Targets. The
City of San Jacinto establishes the following per
capita GHG reduction targets, in order to meet
the requirements established by the state under
AB 32 and SB 32, consistent with the CARB’s
2017 Scoping Plan:
• 1.83 MTCO2e per service population (SP)
by 2030; and
• 0.62 MTCO2e per service population (SP)
by 2050.
» Policy RM-4.10: GHG Reduction. Consider and
adopt new local policies and programs that
will help to provide energy efficient alternatives
to fossil fuel use and reduce consumption in
order to reduce greenhouse gas emissions
consistent with the local measures identified
in the Western Riverside County Subregional
Climate Action Plan for San Jacinto.
» Policy RM-4.11: Carbon Reduction. Expand the
number of parks and trees in San Jacinto to
provide a larger carbon sink or area containing
natural sources that retain more carbon than
what those sources emit.
» Policy RM-4.12: Public Engagement. Promote
regional air quality programs in order to inform
the public on regional air quality concerns and
encourage the engagement of all San Jacinto
residents in future planning decisions related to
air quality.

3.A.8.c
Packet Pg. 324 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Six: Resource Management
99 » Action RM-4a: Implement the local GHG
reduction measures identified in the Western
Riverside Council of Government’s Subregional
Climate Action Plan (CAP) for San Jacinto,
participate in future updates of the CAP, and on
an annual basis, record the status of each local
measure and submit the result to WRCOG using
the WRCOG Climate Action Plan Tracking Tool.
» Action RM-4b: As applicable, review new
industrial and commercial development
projects during the CEQA process for potential
air quality impacts to residences and other
sensitive receptors. Ensure that mitigation
measures and best management practices are
implemented to reduce significant emissions of
criteria pollutants.
» Action RM-4c: Review development,
infrastructure, and planning projects for
consistency with SCAQMD requirements
during the CEQA review process. Require
project applicants to prepare air quality
analyses to address SCAQMD and General Plan
requirements, as appropriate, which include
analysis and identification of:
• Air pollutant emissions associated with
the project during construction, project
operation, and cumulative conditions.
• Potential exposure of sensitive receptors to
toxic air contaminants.
• Significant air quality impacts associated
with the project for construction, project
operation, and cumulative conditions.
• Mitigation measures to reduce significant
impacts to less than significant or the
maximum extent feasible where impacts
cannot be mitigated to less than significant.
» Action RM-4d: Work with the South Coast
Air Quality Management District, Southern
California Association of Governments, the
Western Riverside Council of Governments, and
the California Air Resource Board to implement
programs aimed at improving regional air
quality.
» Action RM-4e: Continue to review development
projects to ensure that all new public and private
development complies with the California Code
of Regulations (CCR), Title 24 standards as well
as the energy efficiency standards established
by the San Jacinto Municipal Code.
» Action RM-4f: Monitor GHG emissions generated
by the community over time for consistency
with the established GHG reduction targets,
and strive to update the City’s community GHG
Inventory every five years. In the event that the
City determines that ongoing efforts to reduce
GHG emissions are not on track to meet the
City’s adopted GHG reduction targets, the City
shall establish and adopt new and/or revised
GHG reductions measures that will effectively
meet the established GHG reduction targets.
» Action RM-4g: Provide the necessary facilities
and infrastructure to facilitate the use of Cityowned low or zero-emission vehicles such as electric vehicle charging facilities at key City
facilities as operations necessitate and/or as
funding becomes available.
» Action RM-4h: Evaluate and consider multimodal transportation benefits to all City employees, such as free or low-cost monthly
public transportation (bus) passes. Encourage
employer participation in similar programs.

Encourage new transit/shuttle services and use.
» Action RM-4i: Evaluate and consider the
feasibility of allowing private bicycle rental
companies to operate in San Jacinto.
» Action RM-4j: Encourage community car-sharing
and carpooling.
» Action RM-4k: Support the establishment and
expansion of a regional network of electric
vehicle charging stations and encourage the
expanded use of electric vehicles.
» Action RM-4l: Establish and adopt standards
and requirements for electric vehicle parking,
including minimum requirements for the
installation of electric vehicle charging stations
in new multi-family residential and commercial,
office, and light industrial development.
» Action RM-4m: Adopt a Green Building Program
to promote the reduction of urban heat islands
through vegetation management and cool
surfaces. Encourage multi-family residential
and non-residential development to increase
the use of higher-albedo materials for surfaces
including roofs, parking areas, driveways, roads,
and sidewalks. Encourage developments with
parking lot areas to shade these areas with
vegetation or solar panels when appropriate.

Support various programs to plant and maintain
trees, which can also contribute to a reduction
of urban heat islands.

3.A.8.c
Packet Pg. 325 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Six: Resource Management | Envision San Jacinto 100
» Action RM-4n: Future development projects will
be required to demonstrate consistency with
SCAQMD construction emission thresholds.

Where emissions from individual projects
exceed SCAQMD thresholds, the following
actions should be incorporated as necessary
to minimize impacts. These measures do not
exclude the use of other, equally effective
mitigation measures as determined by a project
specific Air Quality Assessment. • Require all off-road diesel equipment greater than 50 horsepower (hp) used for
this Project to meet USEPA Tier 4 final offroad emission standards or equivalent.

Such equipment shall be outfitted with
Best Available Control Technology (BACT)
devices including a California Air Resources
Board Certified Level 3 Diesel Particulate
Filter (DPF) or equivalent. The DPF reduces
diesel particulate matter and NOx emissions
during construction activities.
• Require a minimum of 50 percent of
construction debris be diverted for recycling.
• Require building materials to contain a
minimum 10 percent recycled content.
• Require materials such as paints, primers,
sealants, coatings, and glues to have a low
volatile organic compound concentration
compared to conventional products.

If low VOC materials are not available,
architectural coating phasing should be
extended sufficiently to reduce the daily
emissions of VOCs.
» Action RM-4o: Future development projects will
be required to demonstrate consistency with
SCAQMD’s operational emission thresholds. For
projects where operational emissions exceed
regulatory thresholds, the following measures
may be used to reduce impacts. Note the
following measures are not all inclusive and
developers have the option to add or substitute
measures that are equally or more appropriate
for the scope of the project. • Develop a project specific TDM program for residents and/or employees that provides
opportunities for carpool/vanpools.
• Provide onsite solar/renewable energy in
excess of regulatory requirements.
• Require that owners/tenants of nonresidential or multi-family residential developments use architectural coatings
that are 10 grams per liter or less when
repainting/repairing properties.
• Require dripless irrigation and irrigation
sensor units that prevent watering during
rain storms.
• Ensure all parking areas are wired for
capability of future EV charging and include
EV charging stations that exceed regulatory
requirements.

3.A.8.c
Packet Pg. 326 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Six: Resource Management
101
Energy and Mineral Resources
Future development within the City will result
in increased energy demands for the operation
of businesses, homes, and transportation
facilities. To reduce greenhouse gas
emissions, pollutants, and ensure that there
are adequate energy and mineral resources
for future generations, safe management and
conservation methods need to be implemented.

Goal RM-5: A community that safely manages its
energy and mineral resources.
» Policy RM-5.1: San Jacinto Power. Continue to
make clean, modern, and cost-effective energy
options available to individuals who live and
work in San Jacinto.
» Policy RM-5.2: Compliance with State
Legislation. Comply with all state requirements
regarding the generation of power and
encourage energy providers to investigate
the use or expansion of renewable sources of
energy.
» Policy RM-5.3: Renewable Energy. Promote
the development and use of renewable energy
resources to reduce dependency on fossil fuels.
» Policy RM-5.4: Energy-Efficient Materials.

Promote the use of energy-efficient materials,
equipment, and design in public and private
facilities and infrastructure.
» Policy RM-5.5: Energy Conservation. Promote
energy conservation and recycling by the public
and private sectors.
» Policy RM-5.6: Energy Needs. Collaborate
with local service providers in determining and
meeting the needs of the community for energy
in clean, modern, and cost-effective ways.
» Policy RM-5.7: Business Community. Support
the decisions of the San Jacinto business
community as they select and implement the
most appropriate, financially feasible, and
responsible energy source for their individual
operations.
» Policy RM-5.8: Public Education. Promote
public education programs that advocate for
reducing energy consumption, and promote
renewable sources of energy.
» Policy RM-5.9: Promote Energy Conservation
in Existing Building Stock. Promote energy
conservation by residents and businesses in
existing structures, in close coordination with
other agencies and local energy providers,
including the SCAQMD and Southern California
Edison.
» Policy RM-5.10: Mineral Resources. Ensure that
any future mining activities be in compliance
with the State Mining Reclamation Act, federal
and state environmental regulations, and local
ordinances.
» Action RM-5a: Continue to implement the City’s
Community Choice Aggregation (CCA) program;
evaluate the effectiveness of the program every
five years to identify programmatic changes
necessary to continue meeting the City’s
objectives.
» Action RM-5b: Implement energy conservation
measures in public buildings through the
following actions:
• Promote energy efficient buildings and site
design for all new public buildings during
the site development permit process; and
• Install energy saving devices in new
public buildings and retrofit existing public
buildings.
» Action RM-5c: During the development review
process, encourage innovative building design,
layout, and orientation techniques to minimize
energy use by taking advantage of sun/shade
patterns, prevailing winds, landscaping and
building materials that control energy usage,
and solar design.
» Action RM-5d: Promote retrofit programs by the
City to reduce energy usage and consequently
reduce emissions from energy consumption.

Encourage utility companies to provide
informational literature about available retrofit
programs at public facilities such as City Hall,
the Community Center , and libraries.
» Action RM-5e: Continue to review development
projects to ensure that all new public and private
development complies with the California Code
of Regulations, Title 24 standards as well as the
energy efficiency standards established by the
General Plan and the Municipal Code.

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» Action RM-5f: Promote the CEC Building Energy
Benchmarking Program (AB 802) on the City’s
website to help benchmark and monitor energy
use for participating businesses seeking to
increase energy efficiency and realize cost
savings.
» Action RM-5g: Encourage new development
projects to install electrified space (HVAC) and
water heating systems in lieu of natural gas
systems, above and beyond the requirements
of Title 24, before and during the building plan
check process.
» Action RM-5h: During the development review
process, require that all new developments
adjacent to or near natural gas lines, coordinate
with So Cal Gas to install and connect to the
lines, as feasible.
» Action RM-5i: Advertise the San Jacinto Power
PureGreen program and encourage San Jacinto
Power customers to enroll in the program and
opt-up to 100 percent renewable energy content.
» Action RM-5j: Encourage Southern California
Edison (SCE) customers to participate in SCE’s
100% Green tier.

Public Safety Resources
Personal safety is essential to the wellbeing
of San Jacinto’s residents. The City contracts
with the Riverside County Sheriff’s Department
(RCSD) for its police services and the Riverside
County Fire Department (RCFD) for its fire
protection and emergency services. The City
must be involved in close coordination with
RCSD and RCFD to ensure appropriate levels
of service are provided in the community,
proper physical planning of new development
is implemented in a way to protect public
health and safety, and a high level of public
involvement in crime and fire prevention.

Goal RM-6: A community that safeguards
persons and property through the provision of
high-quality public safety services and crime
prevention measures.
» Policy RM-6.1: Provision of Police and Fire
Services. Encourage the Riverside County
Sheriff’s Department and the Riverside County
Fire Department to maintain adequate staff and
equipment to provide efficient, high quality, and
responsive public safety services to the San
Jacinto community.
» Policy RM-6.2: Department Consultation.

Promote coordination between the City of San
Jacinto and public safety services during the
review of new development applications to
ensure that adequate attention is being paid to
fire and safety concerns during the design and
planning of a project.
» Policy RM-6.3: Site Design. Recognize the
role of design features in new development
to reduce potential for crime and implement
best practices into existing plans and new
development strategies.
» Policy RM-6.4: School Safety. Collaborate with
San Jacinto schools to support the community’s
youth through high quality after-school/summer
programs, psychological counseling, and
education about online safety.
» Policy RM-6.5: Crime Prevention. Promote and
support community-based crime prevention
programs, such as community policing, public
education, youth crime prevention, and outreach
programs, as an important tool to the provision
of professional police services.
» Policy RM-6.6: Public Safety Hot Spots.

Prioritize enforcement activities to minimize
safety hot spots. Work with code enforcement
to support the timely resolution of cases to
ensure compliance with City codes.

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» Action RM-6a: Adopt and maintain level of
service (e.g., response times, call handling) and
staffing standards as well as a developer fee
program for the Police Department. Review the
level of services and funding levels at budget
time, adjusting when necessary to ensure
that adequate levels of service and facilities
are provided and maintained based on shortterm and long-term growth projections. Future developers will contribute funds for police
services through the adopted developer fees.
» Action RM-6b: Continue to work with the school
districts to provide School Resource Officers
(SROs) to assist the school districts with safety
and security concerns. Review the success
of the program and funding/staffing levels on
an annual basis, adjusting when necessary
to ensure that adequate levels of service are
provided and maintained.
» Action RM-6c: In cooperation with the school
districts, police and fire departments, and local,
state, and federal emergency management
agencies, implement an Emergency Operation
Center (EOC) to respond to and manage
disasters. Provide annual training for City
staff in emergency management so that when
they are called into action, they will be able to
distribute information and resources to the
public effectively.
» Action RM-6d: During the development review
process, require design features that reduce the
potential for crime. New projects should:
• Provide well-lighted and visible streets
and street names, building entrances and
addresses, common areas, and parking
facilities.
• Limit access into and between buildings
to reduce escape routes and to make
undetected entry difficult.
• Provide landscaping that permits the natural
surveillance of open areas and entryways,
and avoids creating places for concealment.
• Be designed to permit emergency vehicle
access to all sides of buildings located
in multi-family and non-residential
developments.
• Be designed to allow for defensible space.
» Action RM-6e: Work with the Riverside
County Sheriff’s Department to promote the
establishment and operation of Neighborhood
Watch programs throughout the City. Consider
assigning a police officer or volunteer patrol
person to each Neighborhood Watch group
for assistance in launching and maintaining a
successful program.
» Action RM-6f: In cooperation with the Riverside
County Fire Department, adopt and maintain
level of service (e.g., response times, call
handling) and staffing standards, as well as
a developer fee program for fire services.

Review the level of services and funding levels
at budget time, adjusting when necessary to
ensure that adequate levels of service and
facilities are provided and maintained. Future
developers will contribute funds for fire services
through the adopted developer fees. During the
budget and CIP process, reserve future sites
through purchase, eminent domain, dedication,
donation, or a combination of these procedures.

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Parks and Recreational Resources
Parks, recreational, and open space facilities
provide innumerable benefits that enrich
a community. San Jacinto is home to a
diverse system of parks, trails, open space,
and recreational facilities. The City strives to
provide well-planned, welcoming, and safe
opportunities for recreation to all members of
the community.

Goal RM-7: An integrated system of parks,
recreational, and open space facilities that meet
the community’s needs and preferences.
» Policy RM-7.1: Regional Cooperation.

Collaborate with the Valley-Wide Recreation and
Park District and other organizations to provide
parks, recreational, and open space facilities
that meet the needs and preferences of all
segments of the community.
» Policy RM-7.2: Service Area. Locate and
distribute parks and recreational facilities
throughout the community so that most
residents are within walking distance (one-half
mile) of a public open space and prioritize the
development of new public spaces in areas
outside of this service radius.
» Policy RM-7.3: New Facilities. Encourage the
use of less developable or undevelopable lands
such as utility corridors, fault zones, flood
control facilities, channels, and easements for
recreational uses, when feasible.
» Policy RM-7.4: Parkland Dedication. Require
future private development to incorporate
parkland, open space, or green space to expand
recreational opportunities in the community
in accordance with standards set by the San
Jacinto Municipal Code.
» Policy RM-7: Maintenance. Require that parks
and recreational facilities be well-maintained by
the responsible agency.
» Policy RM-7.6: Safety. Enhance park safety
through playground design, crime prevention
technology, night lighting, natural surveillance,
unobtrusive landscaping, and increased public
safety patrols.
» Policy RM-7.7: Accessible Facilities. Require
that new park facility construction and existing
facility retrofits meet accessibility standards
defined by the Americans with Disabilities Act
(ADA) and playground safety requirements
(Senate Bill 2733).
» Policy RM-7.8: Joint Use Facilities. Collaborate
with school districts and other agencies to
develop cooperative programs where the joint
use of facilities would lead to enhanced and
more efficient facility utilization.
» Policy RM-7.9: Open Space in Nonresidential
Development. Encourage outdoor gathering
spaces, such as mini-parks and plazas, be
incorporated into nonresidential development to
encourage social interaction, create experienceoriented centers, and enhance the visual character of the community.
» Policy RM-7.10: Parkland Funding. Actively
pursue financing for parkland acquisition and
maintenance, and allocate sufficient funding to
park development to support the community’s
recreational needs.
» Policy RM-7.11: Community Support.

Collaborate with residents to ensure the City’s
park and recreation facilities and programs
reflect community preferences.

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» Action RM-7a: Review development proposals
for their potential demand for and impact
on parks and recreational facilities in the
community by:
• Requiring developers of residential projects
to provide adequate parkland equal to
five acres per 1,000 residents (0.005 acre
per resident), or pay an in-lieu fee prior to
occupancy of the project.
• Requiring non-residential development to
provide parkland equal to 2.5 acres per 1,000
employees (0.0025 acre per employee), or
pay an in lieu fee prior to occupancy of the
project.
• Work with developers to identify the
appropriate park type(s), size(s), facilities,
and location(s) for required park facilities.
• Ensure parkland facilities conform with City
standards.
» Action RM-7b: For projects located along the
river levees or fault zones, or that include
drainage courses, utility easements, and/or
flood control facilities, encourage the project
to provide easements to the appropriate
agency (the City of San Jacinto, homeowners
association, Valleywide or other agency) for the
provision of linear parks, pathways, horseback
riding trails, and/or hiking and biking trails within
these areas, linking to the regional park and trail
system where possible.
» Action RM-7c: Cooperate with joint power
authorities, special districts, and regional, State,
and federal agencies to explore the development
of a regional park that includes facilities such as
hiking trails, camping, and fishing opportunities.
» Action RM-7d: Pursue available resources
to fund recreation facilities and parkland
acquisition, development, and maintenance,
including but not limited to, State and federal
grants, special districts, private donations, gifts,
and endowments.
» Action RM-7e: Cooperate with the Valley-Wide
Recreation and Park District, Mount San Jacinto
Community College, and other public and private
service providers to identify additional needed
senior and youth programs and services in the
community. Work with these organizations to
develop programs and expand access to and
participation in senior and youth programs
without duplicating efforts. Encourage the use
of public transit and alternative modes of travel
to these facilities and programs.
» Action RM-7f: As more schools are built within
the City, maximize the joint use of facilities by
the City and the local school districts, including
joint school/park sites, joint use of athletic fields,
community meeting facilities, and provision of
child and senior care facilities, where feasible.
» Action RM-7g: Maintain an up-to-date inventory
of developed and proposed public park land and
residences outside of one-half mile of a public
park so that new park development can be
directed to those areas.

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Educational Resources
San Jacinto recognizes that education of its
residents is a key to its long-term success.

Education helps to provide the knowledge,
requisite skills, and resources that build selfesteem, employment opportunities, and a strong local economy. San Jacinto’s educational
system provides a strong foundation for lifelong
learning opportunities.

Goal RM-8: A community that supports the
continued lifelong learning of all its residents
with high-quality educational facilities and
opportunities.
» Policy RM-8.1: Cooperation. Proactively
cooperate with San Jacinto Unified School
District, Hemet Unified School District, and
Mount San Jacinto College to encourage the
provision of lifelong learning opportunities for
persons living and working in San Jacinto.
» Policy RM-8.2: School Facilities. Work with
developers and the school district to ensure the
payment of fees, construction, and expansion of
school facilities to address expected increases
in school-age population.
» Policy RM-8.3: Early Childhood Development.

Encourage community organizations and
schools to provide and expanded opportunities
for early childhood care (0–5 years) and
development.
» Policy RM-8.4: Occupational Training. Partner
with the efforts of regional occupational boards
and local educational institutions to implement
career pathway and job training programs for
youth and adults.
» Policy RM-8.5: College Education. Support
Mount San Jacinto College in providing
comprehensive educational opportunities
that include associate degree and certificate
programs.
» Policy RM-8.6: Libraries. Work closely with the
Riverside County Library System to provide
library facilities and services necessary to meet
the needs of all segments of the community.
» Action RM-8a: Continue to work with the school
districts to ensure adequate school facilities
are provided and maintained in the community.

Specifically, the City should:
• During the processing of residential and
non-residential development proposals,
ensure the school districts are consulted
regarding the potential impact of the project
on educational services and facilities.

When proposed developments cannot be
served by existing facilities and services,
the City shall work with the developer and
the school district in exploring options for
service provision and facility funding.
• Prior to approving a project that is likely
to generate students, require the applicant
to mitigate school impacts to the full
extent permitted by State law through land
dedications, payment of fees, participation
in a special assessment district, or any
combination of the above.
• Cooperate with school districts to update
population projections, student generation
formulas, potential school sites, and
facilities improvement plans in their Long
Range Facility and Master Plans.
• Work with school districts to expedite
the construction of new schools, when
necessary.
• Cooperate with school districts and
recommend appropriate sites for new
school development as proposals for new
school facilities come forward.

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» Action RM-8b: During the development and
environmental review process for future
schools located in San Jacinto, cooperate with
the appropriate school district to minimize the
impacts of school development through traffic
management and parking measures, and the
use of appropriate site layout and buffering
techniques. When feasible, encourage the
location of new schools at the periphery of
residential neighborhoods and provide buffers
at all common property lines with residential
uses.
» Action RM-8c: Continue to work with the
Riverside County Library System to ensure that
library development keeps pace with overall
City development and population growth. As
part of the development review process, ensure
developers pay all required library fees prior to
occupancy of their projects.

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Infrastructure Planning
Infrastructure provides the physical and
organizational means of production and
distribution for essential services required for
community function. The City actively plans
for the provision and financing of infrastructure
and services to maintain quality of life.

Goal RM-9: A community that provides adequate,
reliable infrastructure and facilities to support
existing and future development.
» Policy RM-9.1: Public Facility Plans. Maintain
and implement public facility master plans, in
collaboration with appropriate outside service
providers and agencies, to ensure compliance
with appropriate regional, State, and federal
laws and to identify infrastructure needs,
funding sources, and implement improvements
for public facilities and services in San Jacinto.
» Policy RM-9.2: Capital Improvements. Maintain
and finance the capital improvement program to
ensure the timely implementation of the General
Plan and the adequate and the timely provision
of public facility and municipal improvements.
» Policy RM-9.3: Fair Share. Ensure that all
new development provides for and funds its
fair share of the costs for the expansion of
public infrastructure and services, recreational
amenities, and facilities.
» Policy RM-9.4: Prioritization. Prioritize the
placement of new infrastructure in areas
targeted for near-term development and in areas
designated as disadvantaged communities
through the orderly extension of infrastructure.
» Policy RM-9.5: Regional Cooperation.

Collaborate with the various regional facility and
service providers to deliver high levels of service
to San Jacinto, and to plan for new development.
» Policy RM-9.6: Telecommunications.

Encourage service providers to make available
the highest level of telecommunications
infrastructure, along with a wide range of modern
telecommunications services for San Jacinto’s
residences, businesses, and institutions.
» Action RM-9a: Continue to cooperate with the
water districts to ensure adequate water supply
and sewage treatment facilities are provided
and maintained in the community. Specifically,
the City should:
• During the processing of development
proposals, ensure the water districts are
consulted regarding the potential impact of
the project on water supplies and sewage
treatment facilities. When requested by the
district or City Engineer, require proposed
developments to include a water quality
assessment as part of the application
materials, and implement identified
mitigation measures during construction
and development.
• Ensure the project applicant has paid the
required fees prior to occupancy of any new
development.
• Require water conservation devices and
water efficient landscaping in new public
and private development and redevelopment
projects.
» Action RM-9b: Cooperate with the water
districts to update population projections, water
use and sewer generation formulas, needed
improvements, and programs within the Water
and Sewer Master Plans at least every five years.
» Action RM-9c: Work with the water districts to
expedite the improvement and expansion of
water, reclaimed water, and sewer facilities,
when necessary.
» Action RM-9d: Whenever feasible, require the
installation and use of reclaimed water systems
for irrigation purposes in new developments.
» Action RM-9e: Cooperate with the Hemet-San
Jacinto Watermaster to proactively manage
groundwater resources and comply with the
Stipulated Judgment and other applicable
federal, State and local regulations.
» Action RM-9f: During the annual budget and
CIP process, refer to the Master Drainage Plan
to identify the resources needed to designate,
preserve, and acquire land for necessary flood
control and drainage facilities.

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Solid Waste Management and Recycling
The State of California has required
communities to be more proactive in addressing
waste management by developing solid waste
diversion and recycling programs to meet
gradually increasing performance standards.

The City understands that proactive waste
management practices are important to protect
the environment and supports an integrated
waste management approach that includes
waste prevention (or “source reduction”),
recycling and composting, and proper disposal
of waste.

Goal RM-10: A cost-effective, integrated waste
management system that meets or exceeds
recycling and waste diversion mandates and
community expectations.
» Policy RM-10.1: Compliance with State
Legislation. Comply with local, regional and
State regulations regarding waste diversion,
source reduction, recycling, and composting.
» Policy RM-10.2: Solid Waste Collection. Provide
adequate waste disposal, recycling, and refuse
services for present and future residents and
businesses, including programs that improve
public access to solid waste collection and
recycling facilities.
» Policy RM-10.3: Hazardous Waste. Promote the
proper disposal of hazardous waste, including
paint, tires, medications, medical sharps,
infectious waste, asbestos waste, construction
waste, and electronic waste, through education,
monitoring, and enforcement of proper use,
storage, handling, and disposal.
» Policy RM-10.4: Source Reduction and
Recycling Efforts. Participate in source
reduction and recycling techniques to reduce
the amount of solid waste sent to landfills and
ensure adequate landfill capacity in the region
» Policy RM-10.5: Organic Waste. Work with
appropriate service providers to collect and
compost greenwaste, including landscaping,
Christmas trees, composting and mulch, and
other sources of organic waste, to distribute
for use in parks, medians, and other municipal
areas.
» Policy RM-10.6: Fees and Funding. Work with
appropriate service providers to periodically
review collection, recycling, and disposal fees
to achieve state and federal mandates, meet
community expectations, and reflect cost
efficiencies or increases for service delivery.
» Policy RM-10.7: Public Education. Promote
citywide educational programs to inform citizens
of the benefits of recycling and appropriate
recycling options and locations.
» Action RM-10a: On an ongoing basis and in
compliance with State law, ensure solid waste
collection activities completed by franchise solid
waste haulers, facility siting and construction
of transfer and/or disposal facilities, operation
of waste reduction and recycling programs,
and household hazardous waste disposal and
education programs are consistent with the
County Solid Waste Management Plan.
» Action RM-10b: Include standard language in
requests for services and in City agreements
requiring contractors to use best management
practices to maximize diversion of waste from
the landfill in order to meet the City’s specified
diversion rates.
» Action RM-10c: Encourage the expansion of
recycling, reuse, and appropriate disposal of
hazardous materials, including the following:
• Increased participation in single family and
multifamily residential curbside recycling
programs;
• Increased participation in commercial and
industrial recycling programs for paper,
cardboard, and plastics;
• Reduce yard and landscaping waste
through methods such as composting,
grass recycling, and using resource efficient
landscaping techniques; and
• Encourage local businesses to provide
electronic waste (e-waste) drop-off services
and encourage residents and businesses to
properly dispose of, or recycle, e-waste.

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ENVIRONMENTAL

JUSTICE
Chapter Seven
The Environmental Justice Element seeks to
reduce disproportionate impacts on vulnerable
populations in San Jacinto and promote equal
distribution of resources. Senate Bill 1000 (SB
1000), the Planning for Healthy Communities
Act, was signed into law by then Governor Jerry
Brown, on September 24, 2016. It mandates that
cities and counties with Environmental Justice
(EJ) Communities (described below) adopt
an EJ Element or integrate appropriate goals,
objectives, and policies into other elements of
their general plans, with the intent to create
healthier places. The City of San Jacinto has
chosen to prepare a separate element so that
all EJ-related goals, policies, and actions are
conveniently located in one document for easy
reference.

Element Organization
The EJ Element will address each of the topics below as they relate to San Jacinto. The goals and policies of this element are organized around the following topics:
• Pollution Exposure and Air Quality
• Access to Public Facilities
• Healthy Food Access
• Safe and Sanitary Homes
• Physical Activity
• Civic Engagement
• Improvement and Programs
111

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Pollution Exposure and Air Quality
Pollution exposure occurs when people come
into direct contact with air, food, water, and
soil contaminants and is often the result of
incompatible land uses sited adjacent to each
other. Sensitive populations (such as children,
the elderly, and those with compromised
immune systems) and sensitive land uses
(such as schools, day cares and hospitals) are
the most susceptible to pollution exposure.

Environmental Justice Communities are
often disproportionately burdened by multiple
sources of pollution exposure. Pollution can
come from many sources including storage
tanks leaking hazardous chemicals into soil and
groundwater, agricultural land uses applying
pesticides, mobile sources such as vehicles
emitting exhaust, and stationary sources such
as diesel engines emitting exhaust.

Goal EJ-1: Land use and development patterns
that reduce pollution exposure and enhance
air quality, especially in environmental justice
communities.
» Policy EJ-1.1: Emission Sources. Encourage
existing sources of emissions to use feasible
measures to minimize air quality impacts in
Environmental Justice Communities and avoid
new sources of significant emissions in these
communities as feasible.
» Policy EJ-1.2: Green Industry. Attract nonpolluting industry and green technology companies to the City.
» Other Policies Related to Goal EJ-1:
• ED-3.2 : Higher Intensity Development
• ED-4.3 : Mixed-Use
• LU-1.1: Land Use Pattern
• LU-1.3: Balancing Jobs and Housing
• LU-2.2: Infill Development
• LU-3.3: Industrial Areas
• LU-3.4: Environmental Compatibility
• LU-3.6: Agricultural Compatibility
• LU-4.1: Use Configuration.
• M-1.4: Truck Routes
• M-6.1: Vehicle Miles Traveled
• M-6.4 : New Development
Environmental Justice Communities
EJ Communities are described by the California Communities Environmental Health Screening Tool (CalEnviroScreen) as areas (i.e., census tracts) of a city or county that have environmental burdens and vulnerabilities than other areas.

Based on data from CalEnviroScreen Version 3.0 (used in practice from 2018 to 2021) and the California Air Resources Board (CARB) Priority Populations Mapping Tool relied upon during preparation of the Envision San Jacinto 2040 General Plan Update, the City identified two census tracts (6065043517 and 6065043507) considered to be EJ Communities (Figure EJ-1). The methodology is described in more detail in the Existing Conditions Report, which was prepared in 2019. Subsequent to this analysis, CalEnviroScreen was updated to Version 4.0 (October 2021). Using Version 4.0, it appears that the environmental context of the two census tracts identified above is improving.

This EJ Element supports continued improvements for areas identified as EJ Communities as well as neighborhoods throughout the City, as a whole. • PS-4.2: Cleanup Sites
• PS-4.4: Transportation
• PS-4.5: Household Hazardous Waste
• PS-4.6: Proposed Facilities
• PS-4.7: Emergency Response
• PS-6.1: Noise Exposure
• PS-6.2: Noise Mitigation
• PS-6.3: Acoustical Studies
• PS-7.4: Air Pollution
• PS-7.11: Greenhouse Gas Emissions
• RM-2.2: Groundwater Management
• RM-2.5: Stormwater
• RM-2.6: Septic Systems

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• RM-4.4: Transportation Options
• RM-4.6: Sustainable Development
• RM-4.7: Sensitive Receptors
• RM-4.8: Mitigation
• RM-4.10: GHG Reduction
• RM-5.1: San Jacinto Power
• RM-5.3: Renewable Energy
• RM-10.3: Hazardous Waste
• RM-10.4: Source Reduction and Recycling
Efforts
Goal EJ-1 is implemented through the following
actions:
• LU-3a
• LU-3c
• LU-3d
• LU-3e
• PS-4a
• PS-4b
• PS-4c
• PS-4d
• PS-4e
• PS-4f
• PS-4g
• PS-6d
• RM-4b
• RM-4c
• RM-4n
• RM-4o
• RM-10a
• RM-10c
Access to Public Facilities
The adequate provision of public facilities is
a critical component to the current and future
prosperity of a community. Under state law
(SB 1000), “public facilities” is an umbrella term
that includes “public improvements, public
services, and community amenities”. This
covers a wide spectrum of publicly provided
uses and services including infrastructure,
school facilities, parks, and transportation and
emergency services. These amenities and
services act to improve the health, safety, and
well-being of a community by either enhancing
the public sphere or providing services that are
available to every resident.

Insufficient public facilities can have significant
impacts to the health and quality of life of
residents, and historically, EJ Communities
have struggled with insufficient access to public
facilities and substandard amenities more than
other communities.

Goal EJ-2: Public facilities and services that
are equitably distributed throughout the City
of San Jacinto and are available to residents of
Environmental Justice Communities.
» Policy EJ-2.1: Convenient Access. Consider
the ease of accessibility of public facilities in
relation to Environmental Justice Communities
during the review and evaluation of public facility
expansion, replacement, and construction.
» Policy EJ-2.2: Prioritize Resources. Apply
resources to meet parks, recreation, and open
space needs in underserved areas of the City
that have a demonstrably greater need for these
amenities.
» Other Policies Related to Goal EJ-2:
• LU-1.5: Public Services for Quality of Life
• LU-1.6: Gathering Spaces
• LU-2.1: Plan for New Development
• LU-5.4: Gathering Places
• M-2.4: Public Transit
• PS-5.1: Emergency Response Services
• PS-5.10: CPTED
• RM-6.1: Provision of Police and Fire
Services
• RM-7.1: Regional Cooperation
• RM-7.2: Service Area
• RM-7.3: New Facilities
• RM-7.4: Parkland Dedication
• RM-7.5: Maintenance
• RM-7.6: Safety
• RM-7.8: Joint Use Facilities
• RM-7.9: Open Space in Nonresidential
Development
• RM-9.3: Fair Share
Goal EJ-2 is implemented through the following
actions:
• ED-2b
• ED-7b
• M-2d
• PS-5d
• PS-5e
• RM-6a
• RM-6f
• RM-7a
• RM-7c
• RM-7e
• RM-7f
• RM-7g
• RM-8c

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Packet Pg. 339 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Seven: Environmental Justice | Envision San Jacinto 114
Healthy Food Access
Food plays a critical role in the health of a
community. Therefore, it is essential that all
residents have access to food that is healthy,
affordable, and culturally appropriate. EJ
Communities may face constraints related to
accessibility to nutritional food, and this lack
of accessibility has a direct impact on personal
health and well-being. Food access is not only
associated with the physical accessibility of
affordable and culturally appropriate food, but
also with food security, defined as access by
all people at all times to enough food for an
active, healthy life. Food security includes the
availability of nutritionally adequate and safe
foods as well as the ability to acquire foods.

Goal EJ-3: Healthy food and nutritional choices
are accessible for all community members.
» Policy EJ-3.1: Incentivize Healthy Food Supply.

Encourage retailers to improve the quality
and selection of healthy foods and nutritional
information and to stock fresh and healthy
food at affordable prices by providing incentive
programs, technical assistance, or other
services.
» Policy EJ-3.2: Access to Healthy Food. Strive to
locate healthy food establishments so that all
residences are within walking distance (quarter
to a half-mile) of a healthy food store or a
store with healthy options, where feasible and
appropriate.
» Policy EJ-3.3: Options for Healthy Food. Prioritize
healthy food supplies in economic development
efforts and encourage the establishment and
operation of farmers’ markets, farm stands,
ethnic markets, mobile health food markets,
and convenience/corner stores that sell healthy
foods including fresh produce.
» Policy EJ-3.4: Farmers Markets. Support existing
farmers markets and support the location
of new farmers markets near Environmental
Justice Communities wherever feasible.
» Policy EJ-3.5: Coordinate with Schools.

Work schools serving students of all ages to
encourage healthy food options being available
and more accessible than unhealthy food
options.
» Policy EJ-3.6: Senior Meals Program. Continue
to support the senior meals program.
» Action EJ-3a: Set an example in City facilities
and at City-sponsored events by providing
healthy food and beverage options, which may
include snack bars, vending machines, and food
and beverages served at meetings and events.
» Action EJ-3b: Coordinate with local markets,
restaurants, and food recovery organizations to
donate surplus food to residents in need.
» Action EJ-3c: Prepare and distribute information
on the benefits of healthy eating and on the
availability of food assistance programs.
» Action EJ-3d: Work with local organizations and
community groups to provide free or reduced
cost lunches after the school year ends.

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Packet Pg. 340 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Seven: Environmental Justice 115
Safe and Sanitary Homes
The housing conditions of homes in a
community have direct health implications for
those who live in the homes. Many residents
in EJ Communities live in dwellings that were
built before standards and regulations were
established to ensure that new homes are free
from pollutants such as lead and asbestos. The
proportion of older homes in EJ Communities
are usually higher than in non-environmental
justice areas and thus residents in EJ
Communities are disproportionately exposed
to these health threats. Older housing often has
other problems such as poor ventilation, which
leads to uncomfortable indoor temperatures
and mold-producing moisture, and pest and
vermin infestation.

Overcrowded housing is another issue that
affects the safety and cleanliness of homes.

Overcrowding is typically measured by
determining the persons-per-room in a dwelling
unit, with more than one person per room
considered overcrowded.

Lastly, housing affordability also influences
whether homes in a community are safe and
sanitary. When a tenant or homeowner spends
more than 30 percent of their income toward
housing (including utilities), they are generally
considered to be cost-burdened. When a
household is cost-burdened, there is less
money for housing maintenance or other needs
such as healthcare and healthy food.

Goal EJ- 4: Healthy living conditions for all
residents, particularly those in Environmental
Justice Communities.
» Policy EJ-4.1: Code Enforcement. Focus code
enforcement efforts in Environmental Justice
Communities to improve unsafe and unsanitary
conditions, focusing on overcrowding, illegal
garage conversions, illegal home businesses,
unpermitted plumbing and electrical, property
maintenance, trash and dumping, and graffiti.
» Policy EJ-4.2: Lead-Based Paint. Raise
awareness about the risks associated with
lead-based paint and other housing hazards,
including by distributing information about
remediation of lead and best practices to reduce
and eliminate other housing hazards.
» Policy EJ-4.3: Indoor Air Quality. Encourage
measures to reduce indoor air quality impacts
(e.g., air filtration systems, kitchen range hood
exhaust fans, low-VOC paint and carpet) for new
developments.
» Policy EJ-4.4: Absentee Owner Outreach.

Conduct periodic absentee owner outreach in
Environmental Justice Communities to inform
owners of their legal requirements to maintain
and upkeep their rental properties.
» Policy EJ-4.5: Tenant Rights. Distribute
information with City newsletters and/or other
periodical publications about protecting tenant
rights, so they are not penalized for reporting
or living in a dwelling unit that does not meet
health and safety standards.
» Other Policies Related to EJ-4:
• HP-1.1: Existing Housing Stock
• HP-1.2: Rehabilitating and Preservation
• HP-3.1: Affordable Housing
• HP-3.3: Attractive and Safe Housing
• LU-5.10: Property Maintenance
• LU-5.11:Older Neighborhoods and
Businesses
Goal EJ-4 is implemented through the following
actions:
• Housing Program 1
• Housing Program 2
• Housing Program 3
• Housing Program 4

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Packet Pg. 341 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Seven: Environmental Justice | Envision San Jacinto 116
Physical Activity
Physical activity is a large contributor to the
physical and mental health of San Jacinto
residents. Physically active people tend to live
longer and have lower risk for heart disease,
stroke, type 2 diabetes, depression, and some
cancers (Centers for Disease Control and
Prevention, 2017). Physical activity is promoted
by the built-environment by providing places
that encourage walking, biking, and other forms
of exercise. These places include parks, open
space, trails, urban green spaces, areas with
robust tree canopies, and active transportation
networks. If a community has facilities that
promote physical activity, community members
are more likely to be physically active within
that community.

Goal EJ-5: Land use and development patterns
that encourage physical activity and improve
multimodal access and connectivity to
employment, shopping, services, schools, parks,
and other destinations.
» Policy EJ-5.1: Eliminate Barriers. Update the
Development Code to eliminate any barriers
to facilitating the development of complete
neighborhoods with access to retail and
recreation resources within walking distance of
homes.
» Policy EJ-5.2: Accessibility. Endeavor to
provide parks that are easily accessible to the
surrounding neighborhood and beyond, and are
as barrier-free as possible, particularly for those
with limited mobility.
» Policy EJ-5.3: Physical Activity. Promote
physical activity programs and education
including, but not limited to, programs offered
by the Landscape, Lighting and Park Districts
and encourage residents to regularly participate
in physical activity and active lifestyles.
» Policy EJ-5.4: Partnerships. Form partnerships
with non-profit organizations, healthcare
organizations, and regional governmental
agencies to foster and participate in efforts
promoting healthy lifestyles, physical activity,
and positive health outcomes.
» Other Policies Related to EJ-5:
• ED-4.5: Walkable
• LU-4.4: Pedestrian Design
• LU-5.8: Streetscapes
• M-1.5: Transportation Improvements for
All Users
• M-1.7: Safe Routes to Schools
• M-3.1: Complete Streets
• M-3.2: Multimodal Facilities
• M-3.3: Multimodal Connectivity
• M-4.1: Trails Master Plan
• M-4.2: Active Transportation Network
• M-4.4: Trail Connectivity
• M-4.5: Support Facilities
Goal EJ-5 is implemented through the following
actions:
• M-1b
• M-1d
• M-3a
• M-3b
• M-3c
• M-4a
• M-4b
• M-4c
• M-4d
• RM-4i

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Packet Pg. 342 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Seven: Environmental Justice 117
Civic Engagement
Civic or community engagement is an important
goal across all local planning and decisionmaking processes. It can help foster a strong sense of place within a neighborhood and
can deepen the investment of stakeholders in
working toward neighborhood improvements.

Environmental Justice issues will be more
effectively identified and resolved if accessible
and culturally appropriate opportunities to
engage in local decision-making are created for
low-income, minority, and linguistically isolated
stakeholders. Effective civic engagement not
only provides the City with an opportunity to
strengthen its relationship with the community,
but provides for sound investment in better
decision-making by ensuring decisions are
informed by community needs and aspirations.

Goal EJ-6: Accessible and culturally appropriate
opportunities for all people regardless of race,
color, national origin, or income to engage in the
decision-making process.
» Policy EJ-6.1: Equitable Civic Engagement.

Support an equitable and comprehensive
approach to civic engagement and public
outreach on all aspects of City governance and
delivery of services.
» Policy EJ-6.2: Community Events. Promote,
sponsor, and support a variety of community
events to strengthen social cohesion and the
overall identity of the City.
» Policy EJ-6.3: City Information. Distribute
City information in Environmental Justice
Communities, such as numbers to call for code
enforcement, programs offered through the City,
housing needs, and general City information.
» Policy EJ-6.4: Partnerships. Partner with and
support the efforts of any community-based
organizations or non-profits that focus on
programs and activities for the Environmental
Justice Communities.
» Other Policies Related to EJ-6:
• RM-4.12: Public Engagement
• RM-7.11: Community Support
» Action EJ-6a: Promote meaningful cross-cultural
participation in local planning and decisionmaking processes by:
• Providing City-sponsored material in
multiple languages.
• Organizing outreach events and conducting
surveys directly to specific demographic
groups.
• Partnering with community-based
organizations that have relationships,
trust, and cultural competency with target
communities to conduct outreach for local
initiatives and issues.
• Tailoring activities and the venues where
they take place to accommodate the
cultural preferences of different racial/
ethnic groups.
» Action EJ-6b: Make meetings and other public
engagement forums accessible to a wide range
of residents and encourage greater attendance
by:
• Ensuring any materials are distributed far
enough in advance of meetings to allow
sufficient time for review and comment.
• Using communication methods that convey
complex or technical information in an
easily understandable manner.
• Facilitating meetings using diverse methods
that can engage all participants and can
appeal to multiple styles of learning.
• Focusing on methods to effectively engage
younger residents.

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Packet Pg. 343 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Chapter Seven: Environmental Justice | Envision San Jacinto 118
Improvements and Programs
An important feature of the Environmental
Justice Element is that it prioritizes projects
and investments that directly benefit
EJ Communities. Environmental justice
communities typically have special needs that
arise from past geographic and procedural
inequities. This requires taking special actions
that will improve existing conditions in EJ
Communities. Many of these actions will not be
applicable across the entire Planning Area, but
will be applicable only to EJ communities due
to their special circumstances.

Goal EJ-7: Improvements and programs address
the needs of environmental justice communities.
» Policy EJ-7.1: Prioritize Spending. Where
possible, prioritize spending of funds for air
quality and other environmental improvements,
public infrastructure improvements, recreation,
and community programming in Environmental
Justice Communities, and make fiscal decisions
based on this priority.
» Policy EJ-7.2: Grant Funding. Seek grants
that will specifically help with the issues in
Environmental Justice Communities such as
safe housing, air quality and environmental
concerns, increased tree coverage, recreational
resources, and other issues.
» Policy EJ-7.3: Coordination. Coordinate with
relevant utility providers to provide adequate
and appropriate levels of service and promote
the maintenance of water, sewer, stormwater,
and electrical facilities serving Environmental
Justice Communities.
» Other Policies Related to EJ-7:
• ED-1.2: Incentives and Services
• ED-1.3: Business Investment
• ED-7.5: Funding
• HP-1.4: Continued and New Investments
• HP-3.4: Incentives For Housing
Development
• LU-5.9: Public and Private Investment
• M-7.1: Funding Sources
• M-7.2: New Developments
• M-7.4: Regional Funding
• RM-7.10: Parkland Funding
• RM-9.1: Public Facility Plans
• RM-9.2: Capital Improvements
• RM-9.4: Prioritization
Goal EJ-7 is implemented through the following
actions:
• ED-3b
• ED-3c
• Housing
Program 10
• Housing
Program 12
• LU-5e
• M-7a
• RM-7d
• RM-9a
• RM-9b

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Packet Pg. 344 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) General Plan 2040 | Chapter Seven: Environmental Justice 119
UV79
Ramona Expy
Kirby St
Ramona Expy
Soboba Rd
Mountain Ave
M eridian St
Soboba Rd
State St
Pal
m
Ave
Washington Ave
Cottonwood Ave
Esplanade Ave
State St
Hewitt St
Park Ave
Ramona Expy
Commonwealth Ave
Lyon Ave
Seventh St
Ramona Blvd
7th St
Record Rd
Odell Ave
Sanderson Ave
Cawston Ave
Pott
er Rd
Warren Rd
Ramona Expy
Lake Park Dr
Census Tract
6065043507
Census Tract
6065043506
Census Tract
6065043509
Census Tract
6065043504
Census Tract
6065051300
Census Tract
6065043508
Census Tract
6065042744
Census Tract
6065043602
Census Tract
6065043601
Census Tract
6065043517
Census Tract
6065043513
Census Tract
6065043512
Census Tract
6065042745
Hemet
Beaumont
Figure EJ-1.

Disadvantaged
Communities
City of San Jacinto
San Jacinto Sphere of
Influence
Neighboring City
Disadvantaged
Community
CalEnviroScreen 3.0 Percentile
0 - 10
11 - 20
21 - 30
31 - 40
41 - 50
51 - 60
61 - 70
71 - 80
81 - 90
91 - 100
0 ½ 1
Miles
San Jacinto River
Data sources: Riverside County GIS; USGS NHD.

Created by De Novo Planning Group for the City of San Jacinto, March 2023.

3.A.8.c
Packet Pg. 345 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040)

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Packet Pg. 346 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040)

HOUSING
Chapter Eight
The City of San Jacinto is required by State
Housing Law (Government Code Section
65583) to have an adopted Housing Element
as part of its General Plan. State Housing Law
requires that a “housing element shall consist
of an identification and analysis of existing and
projected housing needs and a statement of
goals, policies, quantified objectives, financial
resources, and scheduled programs for the
preservation, improvement, and development
of housing. The housing element shall identify
adequate sites for housing, including rental
housing, factory-built housing, and mobile
homes, and shall make adequate provision for
the existing and projected needs of all economic
segments of the community.” In addition, the
Housing Element is updated on a regular 8-year
cycle, as required by State Housing Law. The
San Jacinto City Council adopted the 2021-
2029 San Jacinto Housing Element on February
2, 2022.

Element Organization
The Housing Element is a part of Envision San Jacinto but provided under separate cover. Amending the Housing Element is subject to the same provisions as amendments to other Elements of the City’s General Plan (see the Introduction for further information). 121

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Packet Pg. 348 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040)

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Packet Pg. 349 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) 595 S. San Jacinto Ave, San Jacinto, CA 92583 | (951) 487-7330 | https://www.sanjacintoca.gov/

3.A.8.c
Packet Pg. 350 Attachment: Envision San Jacinto - General Plan 2040 (Annual Progress Report - General Plan 2040) Jurisdiction San Jacinto
Reporting Year 2024
Housing Element Planning Period 6th Cycle
Current Yea
r
Deed
Restricted
0 Non-Deed
Restricted
0 Deed
Restricted
0 Non-Deed
Restricted 16
Deed
Restricted
0 Non-Deed
Restricted
0 268
284
Units by Structure Type Entitled Permitted Completed
Single-family Attache
d 00 0
Single-family Detache
d 854 268 141
2 to 4 units per structure 0 0 0
5+ units per structure 0 0 0
Accessory Dwelling Uni
t 12 12 4
Mobile/Manufactured Hom
e 44 2
Total 870 284 147
Infill Housing Developments and Infill Units Permitted # of Projects Units 55 279 279
21 500
486000
Income Rental Ownership Total
Very Lo
w 00 0
Low 00 0
Moderate 00 0
Above Moderate 00 0
Total 0 0 0
Streamlining Provisions Used - Permitted Units # of Projects Units SB 9 (2021) - Duplex in SF Zone 00
SB 9 (2021) - Residential Lot Spli
t 00
AB 2011 (2022
) 00
SB 6 (2022) 00
SB 423 (2023) 00
Ministerial and Discretionary Applications # of Units
Ministerial 18 18
Discretionary 3 482
Density Bonus Applications and Units Permitted
Number of Applications Submitted Requesting a Density Bonus 0 Number of Units in Applications Submitted Requesting a Density Bonus 0 Number of Projects Permitted with a Density Bonus
0 Number of Units in Projects Permitted with a Density Bonu s
0 Housing Element Programs Implemented and Sites Rezoned Count 210
Total Housing Applications Submitted:

Number of Proposed Units in All Applications Received:

Total Housing Units Approved:

Total Housing Units Disapproved:

Total Units
Housing Applications Summary
Use of SB 423 Streamlining Provisions - Applications
Note: Units serving extremely low-income households are included in the very low-income Number of SB 423 Streamlining Applications
Above Moderate
Indicated as Infill
Not Indicated as Infill
Building Permits Issued by Affordability Summary
Income Level
Programs Implemented
Sites Rezoned to Accommodate the RHN
A
(Jan. 1 - Dec. 31)
10/15/2021 - 10/15/2029
Units Constructed - SB 423 Streamlining Permits
Number of SB 423 Streamlining Applications Approved
Very Low
Low
Moderate

3.A.8.d
Packet Pg. 351 Attachment: 2024 City of San Jacinto Annual Progress Report Summary (Annual Progress Report - General Plan 2040) Jurisdiction San Jacinto ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2024 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 1 Projection
Period 34
RHNA Allocation
by Income Level
Projection
Period -
06/30/2021-
10/14/2021
2021 2022 2023 2024 2025 2026 2027 2028 2029
Total Units
to Date (all
years)
Total Remaining
RHNA by
Income Level
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - 5 16 - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - 2 - - - - - - -
Above Moderate 1,567 36 12 328 172 268 - - - - - 816 751 3,392
36 12 330 177 284 - - - - - 839 2,553
5 67
Extremely lowIncome Need 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total Units to Date Total Units Remaining 400 - - - - - - - - - - 400
VLI Deed RestrictedVLI Non Deed Restricted
444
Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will only include units that were permitted since the start of the planning period. Projection Period units are in a separate column.Total RHNATotal Units Income Level
Very LowLowExtremely Low-Income Units*
Note: units serving extremely low-income households are included in the very low-income RHNA progress and must be reported as very low-income units in section 7 of Table A2. They must also be reported in the extremely low-income category (section 13) in Table A2 to be counted as progress toward meeting the extremely low-income housing need determined pursuant to Government Code 65583(a)(1).*Extremely low-income housing need determined pursuant to Government Code 65583(a)(1). Value in Section 5 is default value, assumed to be half of the very low-income RHNA. May be overwritten.

Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1).

Please Note: Table B does not currently contain data from Table F or Table F2 for prior years. You may login to the APR system to see Table B that contains this data.Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected]. 558
-
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs. 2 Moderate
800 465 560
Please contact HCD if your data is different than the material supplied here 21 2
Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
800

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Packet Pg. 352
Attachment: 2024 City of San Jacinto Annual Progress Report Table B (Annual Progress Report - General Jurisdiction San Jacinto
Reporting Year 2024 (Jan. 1 - Dec. 31)
123 4
Name of Program Objective Timeframe in H.E Status of Program Implementation

1. Code Enforcement
Continue to implement code enforcement program and complete housing conditions survey by the end of FY23/24.

Code enforcement: continuousHousing conditions survey: end of FY23/24 In 2024, there were 20,720 Code Enforcement Cases opened, which includes cases to address issues such as substandard housing, weed abatement, junk and trash, and illegal land uses. The Code Enforcement Program continues to proactively address these issues and repond to complaints from property owners, renters, and the general public.The City continues to monitor grant opportunties to fund a Housing Conditions Survey.

2. Preservation of At-Risk Units Monitor status of assisted projects. Continuous Ongoing yearly monitoring of at-risk units. City will continue to monitor. 3. Section 8 Rental Assistance Continue to support the HARIVCO’s applications for additional Section 8 allocations and efforts to provide vouchers for lower income San Jacinto residents.

Continuous Ongoing support will be provided. City will continue to monitor units at risk of converting to market rate housing. At this time there are no known units at risk.

4. Rehabilitation Program Rehabilitation of 16 housing units.

Starting in 2021, annually apply for funding as Notices of Funding Availability are released; meet with the County annually to assess availability of funds.

Ongoing review of Notices of Funding Availability released by state and federal agencies to identify opportunity for funding of rehabilitation projects.

5. General Plan and Development Code Update / Shortfall Program Maintain adequate sites to accommodate San Jancinto's RHNA throughout planning period.

Continuous
The General Plan 2040 was adopted by the City Council on November 15, 2022. Since the update, no amendments to the General Plan or Zoning Map have been approved that would result in a reduction of adequate sites to accommodate San Jacinto's RHNA. The Planning Division will continue to monitor the number of adequate sites.

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583

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Attachment: 2024 City of San Jacinto Annual Progress Report Table D (Annual Progress Report - General

6. Housing Sites
Monitor status of residential and mixed-use sites on an annual basis. Provide potential developers with this information when requested, and provide direct mailing of this information to property owners.

Continuous
The City has received inquiries on residential and mixed-use sites formally with the submittal of Pre-Application Review applications, and informally through phone calls and emails. The City provided responses to all requests that included housing and mixed-use opportunities.

7. Residential Development Monitoring (No Net Loss)
Annually monitor the City’s sites inventory and continued ability to accommodate the remaining RHNA by maintaining anaccurate electronic inventory of available sites. The Planning Department will be responsible for maintaining the electronic inventory, consulting the inventory as part of the development review process, and updating the inventory as projects are proposed, approved, and developed. The City will complete its annual review concurrent with preparation of its annual Housing Element Progress Report.

Continuous All inventory sites are still available for development to accommodate the City's RHNA. The City will continue to update the electronic inventory in April of each year.

8. Replacement of Affordable Units
For all project applications, identify the need for replacement of affordable housing units and ensure units are replaced, if required.

Continuous There has been no development projects that proposed to remove affordable housing. City will continue to monitor.

9. Accessory Dwelling Units
Survey and evaluate potential methods to encourage ADU development throughout the community and adopt appropriateprocedures, policies, and regulatory provisions. Update the City’s Development Code to be consistent with State ADU Lawand monitor State law for future updates to ADU regulations and update the City’s Development Code to be consistent with future updates if needed. Continue educating the community on the opportunity to develop ADUs and promote the development of ADUs affordable to lowerincome households. Continue to provide information about ADUs on the City’s website and on public counters.

Code compliance: first update by July 2023 and continuous evaluationEducation/Public Information.

An ordinance was adopted to ensure compliance with section 65852.2 of the Government Code. ADU information is provided to customers by phone, email and in person (at Planning Counter) on a daily basis as requested. Staff is also implementing a preapproved ADU program.

3.A.8.f
Packet Pg. 354
Attachment: 2024 City of San Jacinto Annual Progress Report Table D (Annual Progress Report - General

10. Incentives and
Assistance to Affordable Housing Developments
Facilitate affordable housing development commensurate with the RHNA. Continuous No affordable housing developments applied for in 2024, except for ADU development.

City will continue to monitor.Proactive outreach has commenced with staff engaging developers to construct multifamily housing and student housing.

11. Infill Housing Program Assist in the development of one infill housing project annually. Continuous The updated City Development Code was adopted on December 6, 2022, removed the requirement for a discretionary permit for infill single family homes and ADUs. This update was intended to faciliitate and assist the development of infill sites.12 accessory dwelling units on infill lots were approved, issued or finalized in 2023.

12. Pursue State and Federal Funding
Work with at least one developer or interested entity annually.When a developer expresses interest in developing affordable or special needs housing in San Jacinto, determine funding priorities and sources and support applications for funding.

Continuous
No developers or interested entities expressed interest in 2024 to develop affordable or special needs housing. The city regularly meets with developers seeking to develop market rate units and staff continues to promote properties with zoning that permits higher densities for affordable and special needs housing. City will continue to monitor.

13. Mortgage Credit Certificate ("MCC") Program
Encourage the relaunch of the MCC Program. Continuous
MCC Program funds have been exhausted and program applications are no longer being accepted. The City has expressed to the Riverside County Housing and Workforce Solutions Department ("County") our intent to support the MCC Programs. The County confirmed that state is no longer funding the program. City will continue to monitor and work with County. Program information will be posted on the City website.

14. Prohousing Designation Program Achieve Prohousing Designation by HCD October 2025 Housing Element Certification achieved in January of 2024. Application for the Prohousing Designation to be submitted by October 1, 2025.

15. Development Code Amendments - Housing Constraints
Revise the Development Code in accordance with this program. October 2023 Code updates for Low-Barrier Navigation Centers, Agricultural/Employee Housing, Emergency Shelter Parking, Transitional/Supportive Housing, RM/RMH Standards (basic requirements), and Residential Parking Requirements were completed in December 2022.Code updates for Affordable Housing Streamlining completed in 2023.

16. Monitor Changes in Federal and State Housing, Planning, and Zoning Laws Stay updated on changes in federal and state housing, planning, and zoning laws. Continuous The Development Code and Subdvision Ordinance were updated in December of 2022 and incorporated necessary changes to comply with applicable laws, which included compliance with existing/new housing and subdivision laws. Additionally, an ordinance was also adopted in December of 2022 to comply with new ADU laws. City will conitnue to monitor changes to State law.

17. Density Bonus Ordinance
Promote the use of density bonus standards and provide technical assistance to developers to maximize local needs.

December 2024 The Development Code was updated in December of 2022 to incorporate necessary changes to comply with state Density Bonus law.

18. Fair Housing Services
Continue to work with the County of Riverside to provide fair housing services to residents of San Jacinto.

Continuous
Continual posting of fair housing information in English and Spanish at City Hall. Soon this information will be moved to the City's Website. Code Enforcement continues to refer fair housing matters to appropriate agencies for assistance. City will continue to monitor.

3.A.8.f
Packet Pg. 355
Attachment: 2024 City of San Jacinto Annual Progress Report Table D (Annual Progress Report - General

19. Affirmatively Furthering
Fair Housing Outreach and Coordination Program
Improve fair housing opportunities and response to complaints through implementing above actions. Follow-up on 100% of complaints.

Continuous
The Community Development Department recieves requests periodically to address fair housing complaints, and staff provides resources to the public, typically through the Code Enforcement Division. In addition, there is an ongoing effort to prepare an Affirmatively Further Fair Housing Programs and obtain resources to further address disparities.

20. Housing for Extremely Low-Income ("ELI") Persons and Persons with Special Needs Strive to facilitate development of 40 ELI units, if feasible, during planning period. Continuous 2022 Development Code updates implemented regulatory modifications for development of affordable housing, including ELI units. Outreach, advertising and expedited review facilitation are ongoing efforts.

21. Residential Energy Conservation
Work cooperatively with property owners, utility companies and other government agencies to reduce energy use in residential developments.

October 2024 Ongoing cooperation provided. City will continue to monitor and work with stakeholders.

3.A.8.f
Packet Pg. 356
Attachment: 2024 City of San Jacinto Annual Progress Report Table D (Annual Progress Report - General March 18, 2025
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood 38202

RECOMMENDATION
Staff recommends that the City Council:

1. Hold the Public Hearing related to the Annexation of Territory into CFD 2020-1;

2. Adopt Resolution No. 4062, calling a Special Election and authorizing the annexation of territory into CFD 2020-1 and the levy of a Special Tax, and submitting the levy of Special Tax to the Qualified Electors;

3. Call upon the City Clerk to conduct the Special Annexation Landowner Election;

4. Adopt Resolution No. 4063, declaring the results of a Special Annexation Landowner Election and directing the recording of an amended Notice of Special Tax Lien; and

5. Introduce Ordinance No. 25-02, levying a Special Tax within CFD 2020-1, including Annexation No. 11, for a first reading:

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO

AUTHORIZING THE LEVY OF SPECIAL TAXES IN A COMMUNITY

FACILITIES DISTRICT, INCLUDING CERTAIN ANNEXATION TERRITORY IDENTIFIED AS ANNEXATION NO. 11 (TAX ZONE NO. 12), INTO SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2020-1.

DISCUSSION:

The City Council and Planning Commission have identified the need for a financing mechanism for maintenance and services on improvements related to new development within the City. In response to the need for additional funding for such maintenance and services, the City Council formed Community Facilities District 2020-1 (the "CFD") and approved the levy of special taxes therein. The CFD provides funding for services including, but not limited to, the maintenance of landscaped areas, parkways, and median improvements throughout the CFD and the maintenance and servicing of streetlights, traffic signals, and appurtenant facilities (the "Services").

The Rate and Method of Apportionment ("RMA") of the CFD defines multiple types of property that may be levied a special tax and utilizes tax zones to allow future development to annex to

4.1 Packet Pg. 357
the CFD rather than forming a new CFD for each new development. The RMA also defines a Contingent Special Tax, which would be levied only if the developer failed to perform landscape maintenance to the City's standards.

The City will utilize the CFD as a tool to tax new development for the direct costs associated with the Services. The use of the CFD provides additional funds to mitigate the added cost of providing the Services to new development. Based upon a petition from the property owner, the City Council declared its intention to annex this territory – commonly known as the site of Lennar Homes’ Canterwood residential development (181 SFR units) located north of Cottonwood Avenue, west of Marilyn Drive, east of N Lyon Avenue and south of Monte Vista Middle School – into CFD 2020-1 by adopting Resolution 4057 at their meeting of February 4, 2025, which also established the Public Hearing date to tonight.

The City Clerk has received the ballots necessary to declare the results of the Special Election.

FISCAL IMPACT:

The annexation of territory into the CFD will assist in mitigating the cost of providing the Services. Based on calculations from Fiscal Year 2024/2025, it is anticipated that the CFD will collect $192,403 in special tax revenue upon full project buildout. There is no Contingent Special Tax revenue.

ATTACHMENTS:

Resolution No. 4062 - CFD 2020-1 Annex. No. 11 - Calling Election Resolution No. 4063 - CFD 2020-1 Annex. No. 11 - Declaring Results Ordinance No. 25-02 - CFD 2020-1 Annex. No. 11

4.1 Packet Pg. 358
Resolution No. 4062

RESOLUTION NO. 4062

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN JACINTO CALLING SPECIAL ELECTION AND

SUBMITTING TO THE QUALIFIED ELECTORS OF

TERRITORY PROPOSED TO BE ANNEXED TO SAN
JACINTO COMMUNITY FACILITIES DISTRICT NO. 2020-1

THE QUESTION OF LEVYING SPECIAL TAXES WITHIN
THAT TERRITORY (ANNEXATION NO. 11 TO CFD 2020-1
(TAX ZONE NO. 12))
WHEREAS, the City Council (the “City Council”) of the City of San Jacinto (the “City”) has heretofore conducted proceedings for the establishment of and has established San Jacinto Community Facilities District No. 2020-1, County of Riverside, State of California (the “District”) for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and
WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982,” (the “Act”) to annex territory to the District by complying with the procedures set forth in said Article 3.5; and
WHEREAS, on February 4, 2025, the City Council adopted Resolution No. 4057, a resolution of intention to annex territory to the District pursuant to Section 53339.2 of the California Government Code, determining that the public convenience and necessity require that certain property, consisting of approximately 33.60 acres, be annexed to the District and containing all of the matters prescribed by Section 53339.3 of said Code, and fixing 6:30 p.m., or as soon thereafter as the matter may be heard, on March 18, 2025, in the San Jacinto Community Center, located at 625 S. Pico Avenue, San Jacinto, California, as the time and place for a hearing upon said resolution; and WHEREAS, pursuant to said resolution, the City Clerk has published and mailed notice of the time and place of said hearing as required by Section 53339.4 of said Code; and
WHEREAS, on March 18, 2025, at the time and place of said hearing, the City Council afforded all interested persons for or against the annexation of said property to the District an opportunity to present testimony and to protest against the proposed

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Packet Pg. 359 Attachment: Resolution No. 4062 - CFD 2020-1 Annex. No. 11 - Calling Election (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4062

annexation of said property to the District, and no protests, either oral or in writing, were received; and
WHEREAS, pursuant to Section 53339.7 of said Code, the City Council may now submit the question of levying a special tax within the territory proposed to be annexed to the District to the qualified electors within that territory.

NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto, as follows:

Section 1. Findings. The City Council finds that: (i) the foregoing recitals are correct; (ii) less than 12 persons have been registered to vote within the territory proposed to be annexed to the District during the 90 days preceding the close of the public hearing held on March 18, 2025, and no persons are registered to vote therein; (iii) pursuant to Section 53326 of the California Government Code, as a result of the findings set forth in clause (ii) above, the vote in the special election called by this resolution shall be by the landowners of the territory proposed to be annexed to the District whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within said territory which would be subject to the proposed special taxes if they were levied at the time of the election; and (iv) pursuant to said Section 53326, the special election must be held at least 90 days, but not more than 180 days following the date of the adoption of this resolution, unless such time periods are waived with the unanimous waiver of the qualified electors. All of the qualified electors in the territory to be annexed waived the time limits and election formalities of the special election.

Section 2. Special Election. A special election is called for and shall be held on March 18, 2025, for the purpose of submitting to the qualified electors of the territory proposed to be annexed to the District the question of whether special taxes shall annually be levied within said territory to pay the costs of (a) the maintenance of landscaped areas, parkways and medians improvements throughout the District and public rights-of-way, including, but not limited to, street trees, fencing, irrigation systems, sidewalks, drainage systems, graffiti removal, replacement, furnishing of water, electric current or energy, gas, or other illuminating agent for the operation of any improvement within the District; and (b) the maintenance and servicing of streetlights, traffic signals and appurtenant facilities, including, but not limited to furnishing of electric current, materials, contracted services, and the necessary maintenance, replacement, and repair required to keep the improvements in operational and satisfactory condition; and (c) any other services authorized under the Mello-Roos Community Facilities Act of 1982, the costs associated with the determination of the amount of and levy and collection of special taxes which will be levied to provide the services, and costs otherwise incurred in order to carry out the authorized purposes of the District pursuant to the Rates and Method of Apportionment of the Special Taxes, attached as Exhibit "C" to Resolution No. 4057.

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Packet Pg. 360 Attachment: Resolution No. 4062 - CFD 2020-1 Annex. No. 11 - Calling Election (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4062

Section 3. Ballot Proposition. The proposition to be submitted on March 18, 2025, to the qualified electors of the territory proposed to be annexed to the District shall be as follows:

Proposition A
Shall Proposition A authorizing the annual levy of special taxes on taxable property in the territory proposed to be annexed to San Jacinto Community Facilities District No. 2020-1, County of Riverside, State of California, to pay the costs of services to be provided for (a) the maintenance of landscaped areas, parkways and medians improvements throughout the District and public rights-ofway, including, but not limited to, street trees, fencing, irrigation systems, sidewalks, drainage systems, graffiti removal, replacement, furnishing of water, electric current or energy, gas, or other illuminating agent for the operation of any improvement within the District; and (b) the maintenance and servicing of streetlights, traffic signals and appurtenant facilities, including, but not limited to furnishing of electric current, materials, contracted services, and the necessary maintenance, replacement, and repair required to keep the improvements in operational and satisfactory condition; and (c) any other services authorized under the Mello-Roos Community Facilities Act of 1982, and to pay costs associated with the determination of the amount of and the levy and collection of the special taxes at the special tax rates as set forth in Exhibit “C” to Resolution No. 4057 be approved?
Section 4. Conduct of Election. Except as otherwise provided in Section 5 hereof, said election shall be conducted by the City Clerk (the "City Clerk") pursuant to the provisions of the California Elections Code governing elections of cities, and the provisions of Division 4 (commencing with Section 4000) of said Code, insofar as they may be applicable.

Section 5. Election Procedures. The procedures to be followed in conducting said election shall be as follows:
(a) Pursuant to Section 53326 of the California Government Code, ballots for the election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. (b) Pursuant to applicable sections of the aforementioned provisions of the California Elections Code governing the conduct of mail ballot elections, including in particular Division 4 (commencing with Section 4000) of said Code, the City Clerk shall mail or deliver to each qualified elector an official ballot in the form attached hereto as Exhibit "A” and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a return identification envelope with prepaid postage

4.1.a
Packet Pg. 361 Attachment: Resolution No. 4062 - CFD 2020-1 Annex. No. 11 - Calling Election (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4062

thereon addressed to the City Clerk for the return of voted official ballots, and a copy of Resolution No. 4057.
(c) The official ballot to be mailed by the City Clerk to each landownervoter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landownervoter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the proposition set forth in the official ballot as marked thereon in the voting square opposite such proposition, and further certifying as to the acreage of the landowner-voter's land ownership within the District.
(d) The return identification envelope delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: the name of the landowner, the address of the landowner, a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, the printed name and signature of the voter, the address of the voter, the date of signing and place of execution of said declaration, and a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. (e) The information-to-voter form to be mailed by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 5:00 o'clock p.m. on the date of the election. (f) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the election, and shall file a statement with the City Council as to the results of such canvass and the election on the proposition set forth in the official ballot.

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Packet Pg. 362 Attachment: Resolution No. 4062 - CFD 2020-1 Annex. No. 11 - Calling Election (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4062

PASSED, APPROVED, and ADOPTED this 18th day of March 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

CITY OF SAN JACINTO:
________________________________
Valerie Vandever, Mayor
ATTEST:

Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig Hayes, City Attorney

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Packet Pg. 363 Attachment: Resolution No. 4062 - CFD 2020-1 Annex. No. 11 - Calling Election (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4062

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 4062 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 18th day of March 2025.

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 18th day of March 2025. ________________________________
Julia Espinoza, City Clerk
City of San Jacinto

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Packet Pg. 364 Attachment: Resolution No. 4062 - CFD 2020-1 Annex. No. 11 - Calling Election (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4062

EXHIBIT “A”

OFFICIAL BALLOT

SPECIAL ELECTION FOR CITY OF SAN JACINTO
COMMUNITY FACILITIES DISTRICT NO. 2020-1

COUNTY OF RIVERSIDE

STATE OF CALIFORNIA
March 18, 2025
To vote, mark a cross (+ or X) in the voting square after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of San Jacinto and obtain another.

PROPOSITION A: Shall Proposition A
authorizing the annual levy of special taxes on
taxable property in the territory proposed to be
annexed to San Jacinto Community Facilities
District No. 2020-1, County of Riverside, State of
California, to pay the costs of services to be
provided for (a) the maintenance of landscaped
areas, parkways and medians improvements
throughout the District and public rights-of-way,
including, but not limited to, street trees, fencing,
irrigation systems, sidewalks, drainage systems,
graffiti removal, replacement, furnishing of water,
electric current or energy, gas, or other
illuminating agent for the operation of any
improvement within the District; and (b) the
maintenance and servicing of streetlights, traffic
signals and appurtenant facilities, including, but
not limited to furnishing of electric current,
materials, contracted services, and the
necessary maintenance, replacement, and
repair required to keep the improvements in
operational and satisfactory condition; and (c)
any other services authorized under the MelloRoos Community Facilities Act of 1982, and to pay costs associated with the determination of
the amount of and the levy and collection of the
special taxes at the special tax rates as set forth
in Exhibit “C” to Resolution No. 4057 be
approved?
Y
YES
N
NO

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Packet Pg. 365 Attachment: Resolution No. 4062 - CFD 2020-1 Annex. No. 11 - Calling Election (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4063

RESOLUTION NO. 4063

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN JACINTO DECLARING THE RESULTS OF THE

SPECIAL ELECTION FOR SAN JACINTO COMMUNITY
FACILITIES DISTRICT NO. 2020-1 ON THE PROPOSITION

OF THE ANNUAL LEVY OF SPECIAL TAXES WITHIN THE

TERRITORY PROPOSED TO BE ANNEXED TO SAID

COMMUNITY FACILITIES DISTRICT TO PAY THE COSTS

OF CERTAIN SERVICES TO BE PROVIDED BY THE

COMMUNITY FACILITIES DISTRICT, DETERMINING THAT

THE TERRITORY PROPOSED TO BE ANNEXED IS

ADDED TO AND PART OF SAID COMMUNITY FACILITIES

DISTRICT WITH FULL LEGAL EFFECT, AND ORDERING

THE RECORDING OF A MAP OF THE BOUNDARIES OF

SAID COMMUNITY FACILITIES DISTRICT INCLUDING

THE TERRITORY ANNEXED THERETO (ANNEXATION
NO. 11 TO CFD 2020-1 (TAX ZONE NO. 12))
WHEREAS, the City Council (the “City Council”) of the City of San Jacinto (the “City”) has heretofore conducted proceedings for the annexation of approximately

33.60 acres of land to San Jacinto Community Facilities District No. 2020-1, County of Riverside, State of California (the “District”) including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for March 18, 2025, and submitting to the qualified electors of the territory to be annexed to the District the question of levying special taxes within that territory to pay the costs of (a) the maintenance of landscaped areas, parkways and medians improvements throughout the District and public rights-ofway, including, but not limited to, street trees, fencing, irrigation systems, sidewalks, drainage systems, graffiti removal, replacement, furnishing of water, electric current or energy, gas, or other illuminating agent for the operation of any improvement within the District; and (b) the maintenance and servicing of street lights, traffic signals and appurtenance facilities, including, but not limited to, furnishing of electric current, materials, contracted services, and the necessary maintenance, replacement, and repair required to keep the improvements in operational and satisfactory condition; and (c) any other services authorized under the Mello-Roos Community Facilities Act of 1982; and the costs associated with the determination of the amount of and levy and collection of

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Packet Pg. 366 Attachment: Resolution No. 4063 - CFD 2020-1 Annex. No. 11 - Declaring Results (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4063

special taxes which will be levied to provide the services and costs otherwise incurred in order to carry out the authorized purposes of the District (the "Election Resolution"); and WHEREAS, the City Council has received a statement from the City Clerk (the "City Clerk"), who pursuant to the Election Resolution, was authorized to conduct such special election and act as the election official therefor, with respect to the canvass of the ballots returned in and the results of said special election, certifying that at least two-thirds of the votes cast upon the proposition submitted to the qualified electors in said special election were in favor of such proposition.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of San Jacinto, as follows:

Section 1. Recitals. The above recitals are true and correct and are hereby incorporated into this resolution.

Section 2. Findings. The City Council finds that: (i) there are no registered voters residing within the territory proposed to be annexed to the District (the "Territory") at the time of the close of the public hearing on March 18, 2025, and pursuant to Section 53326 of the Government Code, the vote in said special election was, therefore, to be by the landowners owning land within the Territory, with each landowner having one vote for each acre or portion thereof of land that he or she owned within the Territory; (ii) pursuant to said Section 53326 and the Election Resolution, the City Clerk caused to be delivered an official ballot for the special election to the owner of the land within the Territory, with return postage prepaid; (iii) said special election has been properly conducted in accordance with all statutory requirements and the provisions of the Election Resolution; (iv) pursuant to said Section 53326, KL LB BUY 4, LLC, the owner of all the land within the Territory, was entitled to thirty-four (34) votes; (v) said landowner returned its ballot to the City Clerk prior to the time set by the City Clerk for the close of the election on March 18, 2025; (vi) the ballot returned to the City Clerk by said landowner voted all votes of said landowner in favor of the proposition set forth therein; (vii) at least two-thirds of the votes cast in such special election on said proposition were in favor thereof, and pursuant to Sections 53328 and 53329 of the Government Code, said proposition carried; (ix) pursuant to Section 53339.8 of the Government Code, the City Council is authorized to determine that the Territory to be annexed has been added to and become a part of the District with full legal effect; and (x) the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the Territory to pay the costs of the services to be provided by the District.

Section 3. Declaration of Results. At least two-thirds of the votes voted in the special election on the proposition of the annual levy of special taxes within the Territory to pay the costs of the services to be provided by the District were voted in favor thereof, and such proposition carried.

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Packet Pg. 367 Attachment: Resolution No. 4063 - CFD 2020-1 Annex. No. 11 - Declaring Results (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4063

Section 4. Annexation. The Territory is annexed and added to and is a part of the District with full legal effect, and the City Council shall annually levy special taxes within the Territory at the rates as specified in Resolution No. 4057 adopted by the City Council on February 4, 2025, to pay costs of certain services to be provided by the District. The boundaries of the Territory are shown on the map entitled, “Annexation Map No. 11, Community Facilities District No. 2020-1 (Tax Zone No. 12) of the City of San Jacinto, County of Riverside, State of California,” which was recorded on February 11, 2025, in the office of the County Recorder of the County of Riverside as Document No. 2025-0041630.

Section 5. Notice. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of Riverside an amendment of the notice of special tax lien and a map of the amended boundaries of the District including the Territory.

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Packet Pg. 368 Attachment: Resolution No. 4063 - CFD 2020-1 Annex. No. 11 - Declaring Results (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4063

PASSED, APPROVED, and ADOPTED this 18th day of March 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

CITY OF SAN JACINTO:
________________________________
Valerie Vandever, Mayor
ATTEST:

Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig Hayes, City Attorney

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Packet Pg. 369 Attachment: Resolution No. 4063 - CFD 2020-1 Annex. No. 11 - Declaring Results (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Resolution No. 4063

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 4063 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 18th day of March 2025.

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 18th day of March 2025. ________________________________
Julia Espinoza, City Clerk
City of San Jacinto

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Packet Pg. 370 Attachment: Resolution No. 4063 - CFD 2020-1 Annex. No. 11 - Declaring Results (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood Ordinance No. 25-02

STATE OF CALIFORNIA ) ORDINANCE NO. 25-02
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

SAN JACINTO AUTHORIZING THE LEVY OF SPECIAL

TAXES IN A COMMUNITY FACILITIES DISTRICT,

INCLUDING CERTAIN ANNEXATION TERRITORY
IDENTIFIED AS ANNEXATION NO. 11 (TAX ZONE NO. 12),

INTO SAN JACINTO COMMUNITY FACILITIES DISTRICT
NO. 2020-1
A. Recital
WHEREAS, the City Council (the “City Council”) of the City of San Jacinto (the “City”) has established San Jacinto Community Facilities District No. 2020-1, County of Riverside, State of California (the “District”) for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and
WHEREAS, the rate and method of apportionment of special tax for the District is set forth in Exhibit “C” to the City Council Resolution No. 4057, which was adopted on February 4, 2025; and
WHEREAS the City has conducted proceedings to annex territory into the District and, with respect to the proceedings, following an election of the qualified electors in the territory proposed for the annexation (the “Annexation Territory”), the City Council, on March 18, 2025, adopted a Resolution which declared the results of the special election and determined that the territory proposed to be annexed is added to and part of the District.

B. Ordinance

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO,

CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2020-1, DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The foregoing recitals are true and correct.

Section 2. By the passage of this Ordinance, the City Council hereby authorizes and levies the special tax within the District, including the Annexation Territory, pursuant to the Community Facilities District Law, at the rate and in accordance with the rate and method of apportionment of special tax set forth in Resolution No. 4057, which rate and method is by this reference incorporated herein. The special tax has previously been

4.1.c
Packet Pg. 371 Attachment: Ordinance No. 25-02 - CFD 2020-1 Annex. No. 11 (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood 38202) Ordinance No. 25-02

levied in the original territory of the District beginning in Fiscal Year 2020 pursuant to Ordinance No. 20-08 passed and adopted by the City Council on July 7, 2020, and the special tax is hereby levied commencing in Fiscal Year 2024/25 in the District, including the Annexation Territory identified as Annexation No. 11 (Tax Zone No. 12), and in each fiscal year thereafter to pay for the services for the District and the costs of administering the District.

Section 3. The City Manager of the City or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific special tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, including the Annexation Territory, in the manner and as provided in Resolution No. 4057.

Section 4. Exemptions from the levy of the special tax shall be as provided in Resolution No. 4057 and the applicable provisions of the Community Facilities District Law. In no event shall the special tax be levied on any parcel within the District in excess of the maximum special tax specified in Resolution No. 4057.

Section 5. All of the collections of the special tax shall be used as provided in the Community Facilities District Law and in Resolution No. 4057, including, but not limited to, the payment of the costs of the services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the special tax.

Section 6. The special tax shall be collected in the same manner and at the same time as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the District may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. The City Manager of the City, or his designee, is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Riverside in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of Riverside for Fiscal Year 2024/25 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City.

Section 7. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, including the Annexation Territory, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the District, including the Annexation Territory, shall not be affected.

Section 8. The Mayor shall sign this Ordinance and the City Clerk shall cause the same, or a summary of it, to be published immediately after its passage at least once in a newspaper of general circulation for the City.

4.1.c
Packet Pg. 372 Attachment: Ordinance No. 25-02 - CFD 2020-1 Annex. No. 11 (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood 38202) Ordinance No. 25-02

Section 9. This Ordinance shall take effect 30 days from the date of final passage.

INTRODUCED at a regular meeting of the City Council of the City of San Jacinto held on March 18, 2025.

PASSED, APPROVED, and ADOPTED this 1
st day of April 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

CITY OF SAN JACINTO:
__________________________
Valerie Vandever, Mayor
ATTEST:

Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig Hayes, City Attorney

4.1.c
Packet Pg. 373 Attachment: Ordinance No. 25-02 - CFD 2020-1 Annex. No. 11 (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood 38202) Ordinance No. 25-02

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Ordinance No. 25-02 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 1st day of April 2025.

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 1st day of April 2025. ________________________________
Julia Espinoza, City Clerk
City of San Jacinto

4.1.c
Packet Pg. 374 Attachment: Ordinance No. 25-02 - CFD 2020-1 Annex. No. 11 (CFD 2020-1 Annex 11 Public Hearing - Lennar Canterwood 38202) March 18, 2025
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood 38202 RECOMMENDATION:

Staff recommends that the City Council:

1. Hold the Public Hearing related to the Annexation of Territory into CFD 2003-1;

2. Adopt Resolution No. 4060, authorizing the annexation of territory to CFD 2003-1 and the levy of a Special Tax, and submitting the levy of Special Tax to the Qualified Electors;

3. Call upon the City Clerk to conduct the Special Annexation Landowner Election;

4. Adopt Resolution No. 4061, declaring the results of a Special Annexation Landowner Election and directing the recording of an amended Notice of Special Tax Lien; and

5. Introduce Ordinance No. 25-01 for a first reading and levying a Special Tax within CFD 2003-1, including Annexation No. 72:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN

JACINTO LEVYING A SPECIAL TAX WITHIN CITY OF SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2003-1, INCLUDING CERTAIN ANNEXATION TERRITORY IDENTIFIED AS ANNEXATION NO. 72 INTO SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2003-1.

DISCUSSION:

The City Council and Planning Commission previously identified the need for additional funding for police protection, fire protection, and suppression services. This includes funding for increased service levels necessitated by new development within the City. In response, the City Council formed Community Facilities District 2003-1 (the "CFD") and approved the levy of special taxes therein.

The City levies a special tax on eligible parcels within the CFD to mitigate the added cost of providing public safety services to new development. Based upon a petition from the property owner, the City Council declared its intention to annex this territory – commonly known as the

4.2 Packet Pg. 375
site of Lennar Homes’ Canterwood residential development (181 SFR units) located north of Cottonwood Avenue, west of Marilyn Drive, east of N Lyon Avenue and south of Monte Vista Middle School – into CFD 2003-1 by adopting Resolution 4056 at their meeting of February 4, 2025, which also established the Public Hearing date to tonight.

The City Clerk has received the ballots from the property owner necessary to declare the results of the Special Election.

FISCAL IMPACT:

The annexation of territory into CFD 2003-1 will assist in mitigating the cost of providing police protection, fire protection, and suppression services. Based on Fiscal Year 2024/2025, it is anticipated that the CFD will collect approximately $118,016 in special tax revenue based upon full project buildout.

ATTACHMENTS:

Resolution No. 4060 - CFD 2003-1 Annex. No. 72 - Calling the Election Resolution No. 4061 - CFD 2003-1 Annex. No. 72 - Declaring Results Ordinance 25-01 - CFD 2003-1 Annex. No. 72

4.2 Packet Pg. 376
Resolution No. 4060

RESOLUTION NO. 4060

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

A RESOLUTION OF THE CITY COUNCIL OF SAN JACINTO,

AUTHORIZING THE ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2003-1,

AUTHORIZING THE LEVY OF A SPECIAL TAX AND

SUBMITTING THE LEVY OF SPECIAL TAX TO QUALIFIED

ELECTORS
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 72
RESOLVED by the City Council (the “Council”) of the City of San Jacinto (the “City”), County of Riverside, State of California, that:

WHEREAS, on February 4, 2025, the Council adopted Resolution No. 4056 entitled “A Resolution of the City Council of San Jacinto Declaring its Intention to Annex Territory into Community Facilities District No. 2003-1 and to Authorize the Levy of Special Taxes Therein” (the “Resolution of Intention to Annex”), stating its intention to annex certain territory into Community Facilities District No. 2003-1 (the “CFD”) pursuant to the Mello Roos Community Facilities Act of 1982, Section 53311, and following of the California Government Code (the “Act”); and
WHEREAS, a copy of the Resolution of Intention to Annex, incorporating a description and map of the proposed boundaries of the annexation territory (the “Annexation No. 72”), stating the services to be provided, and the rate and method of special tax to be levied within the Annexation No. 72 to pay for the services, is on file with the City Clerk, and the provisions thereof are fully incorporated herein by reference; and WHEREAS, on the date hereof, the Council held a noticed public hearing as required by the Act and the Resolution of Intention to Annex relative to the proposed annexation of territory to the CFD and the levy of special taxes in the Annexation No. 72; and
WHEREAS, at such hearing all interested persons desiring to be heard on all matters pertaining to the Annexation No. 72 to the CFD and the levy of special taxes within the Annexation No. 72 were heard and a full and fair hearing was held; and WHEREAS, prior to the time fixed for the hearing, written protests have not been filed against the proposed annexation of territory to the CFD by (i) 50% or more of the registered voters, or six registered voters, whichever is more, residing in the existing CFD; or (ii) 50% or more of the registered voters, or six registered voters, whichever is more,

4.2.a
Packet Pg. 377 Attachment: Resolution No. 4060 - CFD 2003-1 Annex. No. 72 - Calling the Election (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4060

residing in the territory proposed to be annexed; or (iii) owners of one-half or more of the area of land in the existing CFD; or (iv) owners of one-half or more of the area of land in the territory proposed to be annexed.

WHEREAS, the annexation map of Annexation No. 72 has been filed with the County Recorder of Riverside County, which map shows the territory to be annexed in these proceedings, and a copy of the map is on file with the City Clerk.

NOW, THEREFORE, it is hereby RESOLVED, DETERMINED AND ORDERED by the City Council of the City of San Jacinto as follows:

SECTION 1. Recitals. The foregoing recitals are true and correct.

SECTION 2. Prior Proceedings. All prior proceedings taken by this Council with respect to the CFD and the proposed Annexation No. 72 have been duly considered and are hereby determined to be valid an in conformity with the Act, and the CFD has been validly established pursuant to the Act.

SECTION 3. Prior Resolution. The provision of the Resolution of Intention to Annex previously adopted by the Council for the CFD are by referenced incorporated herein.

SECTION 4. Boundaries. The boundaries of the territory to be annexed to the CFD, as described in Annexation Map No. 72, is on file with the City Clerk and heretofore recorded in the Riverside County Recorder’s Office on February 11, 2025, in Book 95 at Page 18 of Maps of Assessment and Community Facilities Districts, Instrument No. 2025-0041629, is hereby approved, and incorporated herein by this reference, and shall be included within the boundaries of the CFD, and said territory is hereby ordered annexed to the CFD, subject to voter approval of the levy of special taxes therein as provided.

SECTION 5. Election. Pursuant to the provision of the Act, the propositions of (i) the annexation of the Annexation No. 72, and (ii) the levy of special taxes within the Annexation No. 72 shall be submitted to the qualified electors of the Annexation No. 72 at an election called therefore as hereinafter provided.

SECTION 6. Electors Determined. The Council hereby finds that fewer than 12 persons have been registered to vote within the territory proposed to be annexed for each of the 90 days preceding the close of the hearing heretofore conducted and concluded by the Council for the purpose of these annexation proceedings.

Accordingly, and pursuant to Section 53326 of the Act, the Council finds that for purposes of these proceedings the qualified electors are the landowners within the Annexation No. 72 and that the vote shall be by said landowners, each having one vote for each acre or portion thereof such landowner owns in the Annexation No.

72. 4.2.a
Packet Pg. 378 Attachment: Resolution No. 4060 - CFD 2003-1 Annex. No. 72 - Calling the Election (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4060

SECTION 7. Applicable Laws. Pursuant to the Act, the election shall be conducted by mailed ballot under Section 4000 of the California Elections Code, provided, however, that for the purposes of setting the date for the election, Sections 53326 and 53327 of the Act shall govern.

SECTION 8. Special Election Called. This Council hereby calls a special election to consider the measure described in the ballot referred to in Exhibit A hereto, which form is hereby approved. The special election shall be held in the meeting room of the Council immediately following adoption of this Resolution. The Council hereby further finds that the provision of the Act requiring a minimum of 90 days to elapse before said election is for the protection of the voters, and the voters have been fully apprised of and have agreed to the shortened time for the election and waiver of ballot measure analysis and arguments, and will have thereby been fully protected in these proceedings. This Council also finds and determines that the City Clerk has concurred in the shortened time for the election.

SECTION 9. Election Official. The City Clerk is hereby designated as the official to conduct said election. It is hereby acknowledged that the City Clerk has on file the Resolution of Intention to Annex, a certified map of the proposed boundaries of the territory to be annexed to the CFD, and a sufficient description to allow the City Clerk to determine the boundaries of the territory to be annexed to the CFD. The voted ballot shall be returned to the City Clerk no later then immediately following the adoption of this Resolution, and when the qualified elector has voted the election shall be closed. This Council acknowledges that the City Clerk has caused to be delivered to the sole qualified elector of Annexation No. 72 a ballot in the form set forth in Exhibit A hereto. The ballot indicated the numbers of votes to be voted by the landowner and was accompanied by all supplies and written instructions for the use and return of the ballot.

SECTION 10. Effective. This resolution shall take effect upon its adoption.

4.2.a
Packet Pg. 379 Attachment: Resolution No. 4060 - CFD 2003-1 Annex. No. 72 - Calling the Election (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4060

PASSED, APPROVED, and ADOPTED this 18th day of March 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

CITY OF SAN JACINTO:
________________________________
Valerie Vandever, Mayor
ATTEST:

Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig Hayes, City Attorney

4.2.a
Packet Pg. 380 Attachment: Resolution No. 4060 - CFD 2003-1 Annex. No. 72 - Calling the Election (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4060

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 4060 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 18th day of March 2025.

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 18th day of March 2025. ________________________________
Julia Espinoza, City Clerk
City of San Jacinto

4.2.a
Packet Pg. 381 Attachment: Resolution No. 4060 - CFD 2003-1 Annex. No. 72 - Calling the Election (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4060

EXHIBIT A
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 72

OFFICIAL BALLOT

SPECIAL TAX ANNEXATION ELECTION
This ballot is for a special, landowner election. You must return this ballot in the enclosed postage-paid envelope to the office of the City Clerk of the City of San Jacinto no later than 5:00 p.m. on Tuesday, March 18, 2025, either by mail or in person. The City Clerk’s office is located at 595 S. San Jacinto Avenue, Building A, San Jacinto, California, 92583.

To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”.

All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of San Jacinto and obtain another.

The amount of money to be raised annually by the levy of the special tax on the property to be annexed to Community Facilities District No. 2003-1 is $118,016 in 2024/25 dollars and the rate and duration of the tax to be levied is as set forth in the rate and method of apportionment of special tax for Community Facilities District No. 2003-1.

Shall the measure pursuant to which the City of San
Jacinto, by and for its Community Facilities District No. 2003-1, shall be authorized to levy special taxes within the territory annexed to Community Facilities District
No. 2003-1 pursuant to and as described in the
Resolution of the City Council of the City of San
Jacinto of Annexation of Territory to Community
Facilities District, Authorizing the Levy of Special Tax and Submitting Levy Of Tax to Qualified Electors,
approved by the City Council on March 18, 2025 be
adopted?
YES:

NO:

By execution in the space provided below, you also confirm your written waiver of the time limit pertaining to the conduct of the election and any requirement for analysis and arguments with respect to the ballot measure, as such waivers are described and permitted by Section 53326(a) and 53327(b) of the California Government Code.

Number of Votes: 34
Property Owner:

KL LB BUY 4, LLC
By:

Title:

4.2.a
Packet Pg. 382 Attachment: Resolution No. 4060 - CFD 2003-1 Annex. No. 72 - Calling the Election (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4061

RESOLUTION NO. 4061

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SAN JACINTO, DECLARING THE RESULTS OF A

SPECIAL ANNEXATION LANDOWNER ELECTION AND

DIRECTING THE RECORDING OF AN AMENDED

NOTICE OF SPECIAL TAX LIEN
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 72
RESOLVED by the City Council (the “Council”) of the City of San Jacinto (the “City”), County of Riverside, State of California, that:

WHEREAS, the Council of the City has previously formed a Community Facilities District pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Section 53311, and following of the California Government Code (the “Act”). The existing Community Facilities District being designated as Community Facilities District No. 2003- 1 (the “CFD”); and
WHEREAS, in proceedings heretofore conducted by the Council pursuant to the Act, the Council has heretofore adopted a resolution entitled “A Resolution of the City of San Jacinto, Authorizing the Annexation of Territory to Community Facilities District No. 2003-1, Authorizing the Levy of a Special Tax and Submitting the Levy of the Special Tax to Qualified Electors” (the “Resolution of Annexation”) calling a special election of the qualified landowner electors in the territory of the land proposed to be annexed to the CFD.

WHEREAS, pursuant to the terms of the Resolution of Annexation, adopted by the Council on this date, which is hereby incorporated herein by this reference, the special election has been held and the City Clerk has on file a Canvass and Statement Result of Election (the “Canvass”), a copy of which is attached hereto as Exhibit A; and WHEREAS, this Council has reviewed the Canvass and hereby approves said Canvass.

NOW, THEREFORE, it is hereby RESOLVED, DETERMINED AND ORDERED by the City Council of the City of San Jacinto as follows:

SECTION 1. Recitals. The foregoing recitals are true and correct.

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Packet Pg. 383 Attachment: Resolution No. 4061 - CFD 2003-1 Annex. No. 72 - Declaring Results (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4061

SECTION 2. Issues Presented. The issues presented at the special election were (i) the annexation of territory to the CFD; and (ii) the levy of a special tax within the territory annexed to the CFD.

SECTION 3. Measure Approved. Pursuant to the Canvass, the issues presented at the special election were approved by the landowners of the territory proposed for annexation to the CFD by more than two-thirds of the votes received at the special election.

SECTION 4. Declaration of Annexation. The Council does hereby determine and declare that the annexed territory is now added to and becomes a part of the CFD. The Council, acting as the Legislative Body of the CFD, is hereby empowered to levy the authorized special tax within the annexation territory.

SECTION 5. Authority to Levy. Pursuant to the voter approval, this Council may levy special taxes in the territory in the captioned annexation according to the rate and method of apportionment specified in the resolution of this Council entitled “A Resolution of the City Council of San Jacinto Declaring its Intention to Annex Territory into Community Facilities District No. 2003-1 and to Authorize the Levy of Special Taxes Therein” adopted on February 4, 2025.

SECTION 6. Prior Proceedings. It is hereby found that all prior proceedings and actions taken by this Council with respect to the CFD and the territory annexed thereto were valid and in conformity with the Act.

SECTION 7. Amendment to Notice of Lien. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of Riverside an amendment to the Notice of Special Tax Lien in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption of this Resolution by the Council.

SECTION 8. This Resolution shall take effect upon its adoption.

4.2.b
Packet Pg. 384 Attachment: Resolution No. 4061 - CFD 2003-1 Annex. No. 72 - Declaring Results (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4061

PASSED, APPROVED, and ADOPTED this 18th day of March 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

CITY OF SAN JACINTO:
________________________________
Valerie Vandever, Mayor
ATTEST:

Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig Hayes, City Attorney

4.2.b
Packet Pg. 385 Attachment: Resolution No. 4061 - CFD 2003-1 Annex. No. 72 - Declaring Results (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4061

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

CERTIFICATION
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 4061 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 18th day of March 2025.

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 18th day of March 2025. ________________________________
Julia Espinoza, City Clerk
City of San Jacinto

4.2.b
Packet Pg. 386 Attachment: Resolution No. 4061 - CFD 2003-1 Annex. No. 72 - Declaring Results (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Resolution No. 4061
A-1

EXHIBIT A
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 72

CANVASS AND STATEMENT OF RESULT OF ELECTION
I hereby certify that on 18th day of March 2025, I canvassed the returns of the election held on March 18, 2025 for the City of San Jacinto Community Facilities District No. 2003-1 Annexation No. 72 and the total number of votes cast in such election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

Qualified
Landowner
Votes
Votes
Cast
Votes
YES
Votes
NO
City of San Jacinto Community Facilities
District No. 2003-1 Annexation No. 72
Special Tax Election, March 18, 2025 34_ _____ _____ _____ The amount of money to be raised annually by the levy of the special tax on the property to be annexed to Community Facilities District No. 2003-1 is $118,016 in 2024/25 dollars and the rate and duration of the tax to be levied is as set forth in the rate and method of apportionment of special tax for Community Facilities District No. 2003-1.

Shall the measure pursuant to which the City of San Jacinto, by and for its Community Facilities District No. 2003-1, shall be authorized to levy special taxes within the territory annexed to Community Facilities District No. 2003-1 pursuant to and as described in the Resolution of the City Council of the City of San Jacinto of Annexation of Territory to Community Facilities District, Authorizing the Levy of Special Tax and Submitting Levy Of Tax to Qualified Electors, approved by the City Council on March 18, 2025 be adopted?
Yes: __________
No: __________
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on March 18, 2025.

By:

City Clerk
City of San Jacinto

4.2.b
Packet Pg. 387 Attachment: Resolution No. 4061 - CFD 2003-1 Annex. No. 72 - Declaring Results (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood Ordinance No. 25-01

ORDINANCE NO. 25-01

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF SAN JACINTO LEVYING A SPECIAL TAX WITHIN

CITY OF SAN JACINTO COMMUNITY FACILITIES
DISTRICT NO. 2003-1, INCLUDING CERTAIN

ANNEXATION TERRITORY
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 72
WHEREAS, the City of San Jacinto (the “City”) has conducted proceedings pursuant to the Mello-Roos Community Facilities Act, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”) to establish “City of San Jacinto Community Facilities District No. 2003-1” (the “CFD”) for the purpose of financing certain municipal services (the “Services) as provided in the Act; and
WHEREAS, the City has conducted proceedings to annex territory into the CFD and, in connection therewith, approved supplements to the Original Rate and Method (as supplemented, the “Rate and Method”);

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SAN JACINTO as follows:

SECTION 1: By the passage of this Ordinance, pursuant to the Act, the Council hereby authorizes and levies the Special Tax within the CFD, including all territory annexed into the CFD prior to the date hereof, at the rate and in accordance with method set forth in the Rate and Method, which rate and method are by this reference incorporated herein.

The Special Tax has previously been levied in the original territory of the CFD beginning in fiscal year 2004-05 and the Special Tax is hereby levied commencing in fiscal year 2024-25 in the territory annexed to the CFD subsequent to formation of the CFD, and in each fiscal year thereafter to pay for the Services for the CFD and all costs of administering the CFD.

The City Council hereby ratifies the levy of special taxes within the CFD pursuant to the Act, at the rate and in accordance with the Rate and Method, in fiscal years 2004-05 through 2024-25.

4.2.c
Packet Pg. 388 Attachment: Ordinance 25-01 - CFD 2003-1 Annex. No. 72 (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood 38202) Ordinance No. 25-01

SECTION 2: The City Manager or designee, or an employee or consultant of the City, is hereby authorized and directed each fiscal year to determine the specific Special Tax to be levied for the next ensuing fiscal year for each parcel of real property within the CFD, including all territory annexed to the CFD prior to the date hereof, in the manner and as provided in the Rate and Method.

SECTION 3: Exemptions from the levy of the Special Tax shall be as provided in the Resolution of Formation, the Rate and Method and the applicable provisions of the Act.

In no event shall the Special Tax be levied on any parcel within the CFD in excess of the maximum Special Tax specified in the Rate and Method.

SECTION 4: All of the collections of the Special Tax shall be used as provided in the Act and in the Resolution of Formation, including, but not limited to, the payment of costs of the Services, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the Special Tax.

SECTION 5: The Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the Council may provide for other appropriate methods of collection by resolution(s) of the Council. The City Manager of the City (or the City Manager’s designee) is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Riverside in order to effect proper billing and collection of the Special Tax, so that the Special Tax shall be included on the secured property tax roll of the County of Riverside for fiscal year 2024-25 and for each fiscal year thereafter, as set forth above, until no longer required to pay for the Services or until otherwise terminated by the City.

SECTION 6: If for any reason any portion of this Ordinance is found to be invalid, or if the Special Tax is found inapplicable to any particular parcel within the CFD, including all territory annexed to the CFD prior to the date hereof, by a court of competent jurisdiction, the balance of this Ordinance and the application of the Special Tax to the remaining parcels within the CFD, including all territory annexed to the CFD prior to the date hereof, shall not be affected.

SECTION 7: The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published immediately after its passage at least once in a newspaper of general circulation circulated in the City.

SECTION 8: This Ordinance shall become effective (30) days following its passage and adoption and shall be published once within fifteen (15) days upon passage and adoption in a newspaper of general circulation in the City of San Jacinto, County of Riverside.

INTRODUCED at a regular meeting of the City Council of the City of San Jacinto held on March 18, 2025.

4.2.c
Packet Pg. 389 Attachment: Ordinance 25-01 - CFD 2003-1 Annex. No. 72 (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood 38202) Ordinance No. 25-01

PASSED, APPROVED, and ADOPTED this 1
st day of April 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

CITY OF SAN JACINTO:
__________________________
Valerie Vandever, Mayor
ATTEST:

Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig Hayes, City Attorney

4.2.c
Packet Pg. 390 Attachment: Ordinance 25-01 - CFD 2003-1 Annex. No. 72 (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood 38202) Ordinance No. 25-01

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

CERTIFICATION
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Ordinance No. 25-01 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 18th day of March 2025.

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 18th day of March 2025. ________________________________
Julia Espinoza, City Clerk
City of San Jacinto

4.2.c
Packet Pg. 391 Attachment: Ordinance 25-01 - CFD 2003-1 Annex. No. 72 (CFD 2003-1 Annex 72 Public Hearing - Lennar Canterwood 38202) March 18, 2025
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: LLPD2 Detachment of Zone 44 - Tract 38202
RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 4064, Ordering the Detachment of Territory from Landscaping, Lighting, and Park District No. 2, currently known as Lennar Tract 38202 (Canterwood).

DISCUSSION:

The City Council previously annexed territory, now referenced as Tract 38202, into its Landscaping, Lighting, and Park District No. 2 as Zone No. 44 to fund various maintenance activities provided by the City.

After annexing Zone 44 to Landscaping, Lighting, and Park District No. 2, the City Council and Planning Commission identified the need for a financing mechanism for maintenance and services on improvements related to new development within the City. In response, the City Council formed Community Facilities District 2020-1 (the "CFD") and approved the levy of special taxes therein. The CFD provides funding for services including, but not limited to, the maintenance of landscaped areas, parkways, and median improvements throughout the CFD, and the maintenance and servicing of streetlights, traffic signals, and appurtenant facilities (the "Services").

The property owner of Tract 38202 has petitioned the City to annex its territory into the CFD, in lieu of levying special assessments under Landscaping, Lighting, and Park District No. 2. As such, the territory must be detached from Landscaping, Lighting, and Park District No. 2 so that only one financing mechanism is in place to fund the Services.

FISCAL IMPACT:

Detaching the territory from Landscaping, Lighting, and Park District No. 2 will have a beneficial impact on the City’s General Fund, as the territory is concurrently annexing to CFD 2020-1, which is anticipated to fully fund the services.

ATTACHMENTS:

Resolution No. 4064 - Ordering Detachment

4.3 Packet Pg. 392
Resolution No. 4064

RESOLUTION NO. 4064

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SAN JACINTO ORDERING THE DETACHMENT OF

TERRITORY FROM LANDSCAPING, LIGHTING, AND
PARK DISTRICT NO. 2
WHEREAS, the City Council of the City of San Jacinto (hereafter referred to as the “City Council”) has, by previous Resolutions, approved the formation of, and annexation to, Landscaping, Lighting, and Park District No. 2 (hereafter referred to as the “District”), pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (hereafter referred to as the “Act”) to pay the costs and expenses of operating, maintaining and servicing the improvements located within the District; and, WHEREAS, the City Council intends to detach from the District the territory identified in Exhibit A, as a Community Facilities District is now in place to pay the costs and expenses of operating, maintaining, and servicing the improvements located within the District.

WHEREAS, a Public Hearing was held on March 18, 2025, on objections to the detachment of the property from the District, and all interested persons were afforded the opportunity to hear and be heard.

NOW, THEREFORE, the City Council of the City of San Jacinto DOES HEREBY RESOLVE as follows:

1. The City Council hereby orders the detachment of the property identified in Exhibit A from the District.

4.3.a
Packet Pg. 393 Attachment: Resolution No. 4064 - Ordering Detachment (LLPD2 Detachment of Zone 44 - Tract 38202) Resolution No. 4064

PASSED, APPROVED, and ADOPTED this 18th day of March 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

CITY OF SAN JACINTO:
________________________________
Valerie Vandever, Mayor
ATTEST:

Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig Hayes, City Attorney

4.3.a
Packet Pg. 394 Attachment: Resolution No. 4064 - Ordering Detachment (LLPD2 Detachment of Zone 44 - Tract 38202) Resolution No. 4064

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 4064 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 18th day of March 2025.

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 18th day of March 2025. ________________________________
Julia Espinoza, City Clerk
City of San Jacinto

4.3.a
Packet Pg. 395 Attachment: Resolution No. 4064 - Ordering Detachment (LLPD2 Detachment of Zone 44 - Tract 38202) Resolution No. 4064

EXHIBIT A
The area to be detached from the District is listed below and includes the original Landscape Maintenance District Name, Zone designation and annexation number.

1. Landscaping, Lighting, and Park District No. 2, Zone 44 a. Succeeded by Community Facilities District No. 2020-1, Annexation No. 11 (Tax Zone No. 12)
The following map shows the territory included in the successor CFD and therefore subject to detachment from the District. The map reflects the property configuration at the time of formation of the respective CFD Tax Zone.

The following listing shows the fiscal year 2024/25 Assessor’s Parcel Numbers for the territory included in the successor CFD and, therefore, subject to detachment from the District.

CFD NAME TAX ZONE APN OWNER NAME FISCAL YEAR
2020-1 12 436-280-011 KL LB BUY 4 2024-25
2020-1 12 436-280-012 KL LB BUY 4 2024-25
2020-1 12 436-280-013 KL LB BUY 4 2024-25
2020-1 12 436-280-014 KL LB BUY 4 2024-25
4 Parcels

4.3.a
Packet Pg. 396 Attachment: Resolution No. 4064 - Ordering Detachment (LLPD2 Detachment of Zone 44 - Tract 38202) March 18, 2025
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024
RECOMMENDATION:

Staff recommends that the City Council receive and file the Annual Financial Report of the City of San Jacinto for the fiscal year ended June 30, 2024, as well as the “SAS 114” Report, and the “GAS” Report.

BACKGROUND:

An audit of financial transactions and internal controls is both legally required and mandated under bond covenants. Audit activities were conducted by the firm Rogers, Anderson, Malody & Scott, LLP (RAMS) at various times beginning in June 2024. Finance staff received a draft of the report in February 2024, performed a review of the report, and completed the Management’s Discussion and Analysis (MD&A).

DISCUSSION:

RAMS has rendered an unmodified opinion that the general purpose financial statements, present fairly, in all material respects, the financial position of the City of San Jacinto at June 30, 2024, and the changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America.

RAMS is also required, by professional standards, to provide certain information regarding the audit process and its responsibilities under generally accepted auditing standards and Government Auditing Standards. The attached “SAS 114” report communicates this information.

RAMS is also required, by professional standards, to provide a 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. Accordingly, the “GAS” report is also presented.

Once received and filed, a copy of the Annual Financial Report will be available for download on the City’s website.

5.A.1
Packet Pg. 397
Staff recommends that the City Council receive and file the Annual Financial Report of the City of San Jacinto for the fiscal year ended June 30, 2024, as well as the “SAS 114” Report, and the “GAS” Report.

FISCAL IMPACT:

This action has no fiscal impact.

ATTACHMENTS:
2024 Financial Statements
SAS 114
GAS Report

5.A.1
Packet Pg. 398
City of San Jacinto, California

ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024

5.A.1.a
Packet Pg. 399 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) This page left intentionally blank

5.A.1.a
Packet Pg. 400 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Annual Financial Report
For the Year Ended June 30, 2024
Table of Contents
PAGE
Independent Auditor's Report 1
Management's Discussion and Analysis 4
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 12
Statement of Activities 13
Fund Financial Statements
Governmental Funds
Balance Sheet 15
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 16
Statement of Revenues, Expenditures and Changes in Fund Balances 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 19 Proprietary Funds
Statement of Net Position 20
Statement of Revenues, Expenses and Changes in Fund Net Position 21 Statement of Cash Flows 22
Fiduciary Funds
Statement of Fiduciary Net Position 23
Statement of Changes in Fiduciary Net Position 24
Notes to the Basic Financial Statements 25
Required Supplementary Information
Budgetary Comparison Schedules
General Fund 61
LLPD #2 62
Community Facilities District 2003 63
Schedule of the City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios as of the
Measurement Date - Last 10 Years
Schedule of Plan Contributions - Last 10 Years
64 65
Non-Major Governmental Funds
Combining Balance Sheet - Non-major funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-major funds
66 73

5.A.1.a
Packet Pg. 401 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) This page left intentionally blank

5.A.1.a
Packet Pg. 402 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) 735 E. Carnegie Dr. Suite 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
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of San Jacinto
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Jacinto, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the entity’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, the business-type activities, each major fund, and the aggregate remaining fund information of the entity, 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 entity and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

5.A.1.a
Packet Pg. 403 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) -2-
Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2024, the entity adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. 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 entity’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:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about entity’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.

5.A.1.a
Packet Pg. 404 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) -3-
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the entity’s basic financial statements. The combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 11, 2025 on our consideration of entity’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering entity’s internal control over financial reporting and compliance.

San Bernardino, California
March 11, 2025

5.A.1.a
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5.A.1.a
Packet Pg. 406 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Management’s Discussion and Analysis

5.A.1.a
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5.A.1.a
Packet Pg. 408 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-4-
As management of the City of San Jacinto, we offer readers of the City of San Jacinto’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ending June 30, 2024. We encourage readers to consider the information presented here in conjunction with the City’s financial statements, which follow this discussion.

FINANCIAL HIGHLIGHTS
 Total assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $181,267,546 (net position). Of this amount, $39,275,090 represents unrestricted net position, which may be used to meet the government’s ongoing obligations to citizens and creditors.
 The City’s total net position increased by $12,226,152, from the prior fiscal year primarily due to increased revenue generated by the City’s public utilities, increased investment earnings, and increased fees for service.
 At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $62,392,565, an increase of $8,536,366 in comparison with the prior year. Approximately 25.48 percent of this amount ($15,894,870) is available for spending at the government’s discretion (unassigned fund balance).
 At the end of the current fiscal year, unrestricted fund balance (the total of the unassigned components of fund balance) for the General Fund was $21,648,749, or approximately 63.42 percent of total General Fund expenditures.

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts – Management’s Discussion and Analysis (this portion), the basic financial statements, Required Supplementary Information, and optional combining statements for non-major governmental funds. The basic financial statements include two kinds of statements that present different views of the City.  The government-wide financial statements provide both long-term and short-term information about the City’s overall financial status, in a manner similar to private sector business.  Fund financial statements focus on individual parts of the City, reporting the City’s operations in more detail than the government-wide financial statements.
 Governmental fund statements tell how general government services, such as community development, were financed in the short-term as well as what remains for future spending.  Proprietary fund statements offer short-term and long-term financial information about the activities the City operates like businesses, such as utility services.  Fiduciary fund statements provide information about financial relationships in which the City acts solely as a trustee or agent for the benefit of others, to whom the resources belong.

Statements
Management's
Discussion
and
Components of the Financial Section
Statements
Financial
Statements Statements Financial
Financial
Analysis
Basic
Summary Detail
Required
Supplementary
Information
Notes
to the
Government-wide Fund
Financial

5.A.1.a
Packet Pg. 409 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-5-
The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a comparison of actual results with the original and final amended budget for the general fund and each major special revenue fund with an annually adopted budget.

In addition to these required elements, we have included combining statements that provide details about our nonmajor governmental funds, which are presented in total in a column in the basic financial statements.

Government-wide Financial Statements
The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the City’s assets and liabilities.

All current year revenues and expenses are reported in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the City’s net position and how they have changed during the fiscal year. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial health of the City is improving or deteriorating.

The government-wide financial statements of the City are divided as follows:
 Governmental activities – All of the City’s basic services are included here, such as police, fire, engineering, streets, parks and recreation, history preservation, community development, redevelopment and general government. Taxes and state and federal grants finance most of these activities.  Business-type activities – The City’s utility services provided are funded by customer fees.

Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund financial statements provide more detailed information about the City’s largest funds, not the City as a whole.

The City has three types of funds:
 Governmental funds – All of the City’s basic services are included in governmental funds, which focus on (1) short-term inflows and outflows of spendable resources, and (2) the remaining year-end balances available for spending. Because this information does not encompass the additional long-term focus of the government-wide statements, reconciliations that explain the relationship (or differences) between governmental funds and governmental activities follow each of the governmental funds statements.  Proprietary funds – Services for which customer fees are intended to finance the costs of operations are generally reported in proprietary funds. Proprietary funds financial statements, like the government-wide statements, provide both long-term and short-term financial information.  Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.
 Internal service funds report activities that provide services for the City’s other programs and activities, such as the City’s self-insurance arrangements.
 Fiduciary funds – The City is the trustee for certain assessment and community facilities district funds. It is also responsible for other trust account assets, which because of trust agreements, can be used only for the trust beneficiaries. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position. We exclude these activities from the City’s government-wide financial statements because the City cannot use these assets to finance its operations.

5.A.1.a
Packet Pg. 410 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-6-

FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS
The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole.

City of San Jacinto
Government-wide Financial Statements - Summary of Net Position As of June 30, 2024 and 2023
(in thousands)
2024 2023 2024 2023 2024 2023
Cash and investments, unrestricted 78,274 $ 70,176 $ 7,727 $ 8,723 $ 86,001 $ 78,899 $ 9.0% Current and other assets 16,042 15,493 11,927 5,291 27,969 20,784 34.6% Capital assets, net 100,672 102,086 14,478 12,766 115,150 114,852 0.3% Total assets 194,988 187,755 34,132 26,780 229,120 214,535 6.8% Deferred outflows of resources 4,735 5,075 1,155 1,160 5,890 6,235 -5.5% Long-term liabilities 4,503 4,649 3,188 3,421 7,691 8,070 -4.7% Other liabilities 37,358 38,198 7,875 4,306 45,233 42,504 6.4% Total liabilities 41,861 42,847 11,063 7,727 52,924 50,574 4.6% Deferred Inflows of Resources 696 209 123 1,042 819 1,251 -34.5% Net position:

Net investment in capital assets 97,131 98,284 11,484 9,513 108,615 107,797 0.8% Restricted 33,378 32,455 - - 33,378 32,455 2.8%
Unrestricted 26,656 19,035 12,617 9,658 39,273 28,693 36.9% Total net position 157,165 $ 149,774 $ 24,101 $ 19,171 $ 181,266 $ 168,945 $ 7.3% Governmental
Activities
Business-type
Activities
Total Primary
Government Total Percent
Change
Net position represents the difference between the City’s resources and its obligations. At June 30, 2024, the largest portion of the City’s total net position, approximately 59.92 percent, reflects the investment in capital assets less related debt outstanding used to acquire the capital assets. These capital assets are used by the City to provide services to the citizens. Additional capital asset information can be found in the Capital Asset and Debt Administration sections of the MD&A. Restricted net position represents amounts that must be used in accordance with external restrictions. The unrestricted balance of net position may be used at the City’s discretion.

The net position of our business-type activities increased by 25.72 percent to $24,101,190, and the City generally can only use this net position to finance the continuing operations of the business-type activities.

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Packet Pg. 411 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-7-
City of San Jacinto
Government-wide Financial Statements - Changes in Net Position For the year ended June 30, 2024 and 2023
(in thousands)
Total
Percent
2024 2023 2024 2023 2024 2023 Change
Revenues
Program revenues:

Charges for services 13,460 $ 14,200 $ 36,169 $ 31,062 $ 49,629 $ 45,262 $ 9.6% Operating grants and
contributions 11,098 10,517 - - 11,098 10,517 5.5%
Capital grants and contributions 8,914 7,824 100 - 9,014 7,824 15.2% General revenues:

Property taxes/property tax in-lieu 9,735 8,769 - - 9,735 8,769 11.0% Transient occupancy taxes 37 43 - - 37 43 -14.0%
Franchise taxes 2,960 2,806 - - 2,960 2,806 5.5%
Sales taxes 12,526 12,253 - - 12,526 12,253 2.2%
Other taxes 142 218 - - 142 218 -34.9%
Other 2,903 1,234 189 (573) 3,092 661 367.8%
Total revenues 61,775 57,864 36,458 30,489 98,233 88,353 11.2% Expenses
Governmental activities:

General government 4,057 3,227 - - 4,057 3,227 25.7%
Public safety 23,692 23,161 - - 23,692 23,161 2.3%
Public works 14,093 10,464 - - 14,093 10,464 34.7%
Community development 11,766 9,933 - - 11,766 9,933 18.5% Culture and leisure 637 1,171 - - 637 1,171 -45.6%
Interest on long-term debt 234 182 - - 234 182 28.6%
Business-type activities:

Water - - 7,852 5,251 7,852 5,251 49.5%
Sewer - - 1,801 1,452 1,801 1,452 24.0%
Power - - 21,875 18,804 21,875 18,804 16.3%
Non-major - - - - - - 100.0%
Total expenses 54,479 48,138 31,528 25,507 86,007 73,645 16.8% Increase (decrease) in net position 7,296 $ 9,726 $ 4,930 $ 4,982 $ 12,226 $ 14,708 $ -16.9% Business-type Total Primary
Government
Governmental
Activities Activities
Revenue
The City’s total revenue, excluding transfers, was $98,233,148 for the year ended June 30, 2024. Revenue from governmental activities, excluding transfers, totaled $61,750,691 and revenue from business-type activities totaled $36,482,457, excluding transfers. During 2024, capital grants and contributions, restricted to the construction of capital assets, comprised 9.07 percent of the total revenue of the City, taxes and other general revenues provided

29.00 percent of the total revenue of the City, and charges for services and operating grants and contributions provided 61.82 percent of the total revenue of the City.

Most of the Governmental Activities revenues remained stable from 2023 to 2024, with an increase of over $2,000,000 attributable to investment earnings, while revenue from Business-type Activities increased more significantly due primarily to increased demand for Power.

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Packet Pg. 412 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-8-
Expenses
The City’s expenses totaled $86,006,996 for the year. Governmental activity expenses totaled $54,479,284, or

63.34 percent of total expenses. Business-type activities incurred $31,527,712 of expenses during the year, or

36.66 percent of total expenses.

The City's expenses increased between 2023 and 2024 mainly due to increased pension expense.

Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities and reflects the financial burden that was placed on the City’s taxpayers by each of the programs.

City of San Jacinto
Government-wide Financial Statements - Net Cost of Governmental Activities For the year ended June 30, 2024 and 2023
(in thousands)
Percent Percent
2024 2023 Change 2024 2023 Change
General government 4,057 $ 3,227 $ 25.7% 404 $ (644) $ -162.7% Public safety 23,692 23,161 2.3% 12,907 14,176 -9.0%
Public works 14,093 10,464 34.7% 7,053 4,465 58.0%
Community development 11,766 9,933 18.5% (229) (3,753) -93.9% Culture and leisure 637 1,171 -45.6% 637 1,171 -45.6%
Total 54,245 $ 47,956 $ 13.1% 20,772 $ 15,415 $ 34.8%
Total Cost Net Cost
of Services of Services
The cost for all governmental activities this year was $54,244,999, not including interest expense of $234,285. The City’s taxpayers paid for approximately 59.87 percent of these costs. Fees, grants and contributions funded the balance of the costs of governmental activities.

Business-type Activities
Charges for services of the City’s business-type activities totaled $36,169,218. Expenses of business-type activities were $31,527,712. Capital grants and contributions were not received in the water, solid waste, sewer, and power activities to finance capital improvements. The costs of capital improvements are reported as capital assets in the statement of net position, rather than as expenses in the statement of activities.

FINANCIAL ANALYSIS OF THE FUND STATEMENTS
The City uses fund accounting to assure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the City’s government, reporting the City’s operations in more detail than the government-wide financial statements.

The City’s governmental funds provide information on near-term inflows, outflows and balances of spendable resources. The City’s governmental funds reported combined fund balances at June 30, 2024 of $62,392,565, an increase of $8,536,366 from the previous fiscal year. Within the change of combined fund balances, the General Fund increased by $5,581,709, due to particularly strong growth in investment earnings and charges for service following an updated user fee study.

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Packet Pg. 413 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-9-
City of San Jacinto
Fund Financial Statements - Fund Balances
As of June 30, 2024 and 2023
(in thousands)
Percent
2024 2023 Change
Nonspendable:

Prepaids $ 234 $ 181 29.28%
Advances receivable 7,607 8,410 -9.55%
Land held for resale 340 340 0.00%
Total nonspendable fund balances 8,181 8,931 -8.40%
Restricted:

Special revenue funds 36,818 32,826 12.16%
Total restricted fund balances 36,818 32,826 12.16%
Assigned:

Capital projects funds 1,499 1,559 -3.85%
Total assigned fund balances 1,499 1,559 -3.85%
Unassigned:

General Fund 21,649 15,473 39.91%
Special revenue funds (5,755) (4,504) 27.78%
Capital projects funds - (429) 100.00%
Total unassigned fund balances 15,894 10,540 50.80%
Total fund balance $ 62,392 $ 53,856 15.85%
General Fund Budgetary Highlights
Over the course of the year, the City revised the City budget with adjustments for revenue and expenditure appropriations approved after the original budget was adopted.

Certain capital project appropriations originally budgeted but not expended in fiscal year 2023 were re-appropriated in 2024 as part of the City’s capital budget.

After taking into account these adjustments, actual expenditures were ($375,760) over the final budget amounts.

Resources available for appropriation were $1,744,556 over the final budgeted amount, primarily due to strong Measure V performance (TUT) and revenue received for the provision of Development Services.

5.A.1.a
Packet Pg. 414 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-10-

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2024, the City had invested $115,149,828 in a broad range of capital assets, including police and fire equipment, buildings, parks and park improvements, roads, bridges, and water, solid waste and sewer utility systems.

City of San Jacinto
Capital Assets
As of June 30, 2024 and 2023
(net of depreciation, in thousands)
2024 2023 2024 2023 2024 2023
Capital assets not being depreciated:

Land and improvements 5,800 $ 5,800 $ 55 $ 55 $ 5,855 $ 5,855 $ Construction in progress 11,993 11,728 4,685 2,070 16,678 13,798 Depreciable/amortizable capital assets,
net of accumulated depreciation/amortization:

Buildings and system 3,765 3,936 3,010 3,144 6,775 7,080 Machinery and equipment 3,298 2,783 3,238 3,561 6,536 6,344 Improvements other than buildings 3,463 2,159 3,421 3,809 6,884 5,968 Infrastructure 71,718 75,053 - - 71,718 75,053
Right-to-use assets 634 627 69 127 703 754
Total 100,671 $ 102,086 $ 14,478 $ 12,766 $ 115,149 $ 114,852 $ Activities Total
Governmental
Activities
Business-type
This year’s major capital asset additions included:

Government-wide, governmental activities:
 Approximately $1.3 million for the San Jacinto Avenue Pavement and Rehabilitation Project.  Approximately $1.5 million for various improvements, including:
o Playground replacement at Basin 7
o Shade Sails at Mistletoe Park
o Sallee Park Improvement Project
o Corp Yard Remodel/Improvements
Government-wide, business-type activities:
 Approximately $850,000 to replace Tahquitz sewer main line  Approximately $1.5 million added to construction in progress for the Bath Well Treatment plant  Approximately $300,000 added to construction in progress for the Grand Well Treatment plant More detailed information about the City’s capital assets is presented in Note 4 to the financial statements.

5.A.1.a
Packet Pg. 415 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-11-
Long-term Liabilities
At June 30, 2024, the City had $7,691,244 in long-term liabilities outstanding. More detailed information about the City’s total long-term liabilities is presented in Note 6 to the financial statements.

City of San Jacinto
Outstanding Liabilities
As of June 30, 2024 and 2023
(in thousands)
2024 2023 2024 2023 2024 2023
Special assessment debt with
government commitment,
including unpaid interest 1,084 $ 1,084 $ - $ - $ 1,084 $ 1,084 $ Loans payable - direct borrowing 1,671 1,801 2,922 3,044 4,593 4,845 Lease and subscription liabilities 594 740 73 211 667 951 Claims and judgments 470 429 - - 470 429
Compensated absences 684 595 193 166 877 761
Total 4,503 $ 4,649 $ 3,188 $ 3,421 $ 7,691 $ 8,070 $
Governmental Business-type
Activities Activities Total
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Since “the Great Recession,” the City has seen significant improvements in economic trends. Despite the economic turmoil caused by the COVID-19 pandemic, the City’s limited categories of revenue (such as not having tourism, hospitality and entertainment industries) helped minimize the economic effects on the City. Residential development and home sales have increased dramatically to their best numbers in years. Commercial development is strong as well, with several high-profile projects moving forward. Public safety costs continue to increase, although at a slower rate than previously due to the County’s cost-minded Sheriff. Meanwhile, the City continues to focus on potential commercial growth, economic development, and attracting the businesses desirable to the residents of the City.

The City also placed a transactional-use tax measure (Measure V) on the November 2020 ballot, passing with 69 percent approval. This measure has provided a sustained increase in revenue, which has helped the City increase its public safety staffing and undertake much needed projects. However, the United States is encountering its highest levels of inflation in four decades, which is anticipated to significantly affect operating costs and limit the use of this new revenue stream to only the most essential services.

The General Fund budget for 2023-2024 appropriates $37,213,774, in operating and capital expenditures, an increase of 12.23 percent from the prior year.

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 demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City of San Jacinto Department of Finance, Accounting Division, PO Box 488, San Jacinto, California 92581, or visit the City’s web page at www.sanjacintoca.gov.

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Packet Pg. 416 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Basic Financial Statements

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Packet Pg. 418 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Government-Wide Financial Statements

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Packet Pg. 420 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -12-
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 78,274,278 $ 7,727,047 $ 86,001,325 $ Pension trust cash and investments 1,000,000 - 1,000,000 Cash and investments with fiscal agents, restricted 74,348 - 74,348 Receivables, net:

Accounts 1,851,442 10,762,319 12,613,761
Interest 937,144 - 937,144
Taxes 1,394,151 - 1,394,151
Notes receivable 3,065,155 - 3,065,155
Due from other governments 4,298,356 16,428 4,314,784
Deposits with others 1,181,516 - 1,181,516
Prepaids 249,227 2,239,738 2,488,965
Internal balances 1,617,391 (1,617,391) -
Inventories 33,007 525,918 558,925
Land held for resale 339,807 - 339,807
Capital assets:

Land and construction in progress 17,792,522 4,740,679 22,533,201 Other capital assets, net of depreciation 82,879,229 9,737,398 92,616,627 Total assets 194,987,573 34,132,136 229,119,709

DEFERRED OUTFLOWS OF RESOURCES
Pension related 4,735,061 1,154,655 5,889,716
Total deferred outflows of resources 4,735,061 1,154,655 5,889,716

LIABILITIES
Accounts payable and accrued liabilities 10,209,873 4,650,912 14,860,785 Accrued wages 213,474 50,859 264,333
Accrued interest payable 7,785 40,452 48,237
Due to other governments 145,071 - 145,071
Retention payable 190,733 - 190,733
Deposits payable 7,885,470 406,056 8,291,526
Unearned revenues 6,272,227 - 6,272,227
Noncurrent liabilities:

Due within one year 627,479 255,466 882,945
Due in more than one year 3,875,859 2,932,440 6,808,299 Net pension liability 12,432,558 2,726,886 15,159,444
Total liabilities 41,860,529 11,063,071 52,923,600

DEFERRED INFLOWS OF RESOURCES
Pension related 695,749 122,530 818,279

NET POSITION
Net investment in capital assets 97,131,391 11,483,513 108,614,904 Restricted for:

Public safety 888,422 - 888,422
Public works 18,091,651 - 18,091,651
Community development 1,245,815 - 1,245,815
Culture and leisure 12,854,953 - 12,854,953
Capital asset financing 296,711 - 296,711
Unrestricted 26,657,413 12,617,677 39,275,090
Total net position 157,166,356 $ 24,101,190 $ 181,267,546 $

5.A.1.a
Packet Pg. 421 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Statement of Activities
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -13-
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants Primary government
Governmental activities:

General government 4,057,095 $ - $ 3,653,209 $ - $
Public safety 23,692,430 10,039,713 744,347 -
Public works 14,092,543 208,893 4,662,029 2,168,732
Community development 11,766,026 3,211,867 2,038,611 6,744,913 Culture and leisure 636,905 - - -
Interest on long-term debt 234,285 - - -
Total governmental activities 54,479,284 13,460,473 11,098,196 8,913,645 Business-type activities:

Water 7,851,666 8,345,102 - -
Sewer 1,801,016 1,758,457 - 100,000
Power 21,875,030 26,065,659 - -
Total business-type activities 31,527,712 36,169,218 - 100,000 Total 86,006,996 $ 49,629,691 $ 11,098,196 $ 9,013,645 $ General revenues:

Taxes:

Property tax, levied for general purpose
Property tax in-lieu of motor vehicle
Transient occupancy taxes
Franchise tax
Sales tax
Other taxes
Unrestricted investment earnings
Gain (loss) on sale of capital assets
Other
Transfers
Total general revenues
Change in net position
Net position, beginning of year
Restatement due to lease remeasurement
Net position, beginning of year, as restated
Net position, end of year
Program Revenues

5.A.1.a
Packet Pg. 422 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Continued
-14-
Governmental Business-Type
Activities Activities Total
$ - (403,886) $ (403,886) $
- (12,908,370) (12,908,370)
- (7,052,889) (7,052,889)
- 229,365 229,365
- (636,905) (636,905)
- (234,285) (234,285)
- (21,006,970) (21,006,970)
493,436 - 493,436
57,441 - 57,441
4,190,629 - 4,190,629
4,741,506 - 4,741,506
4,741,506 (21,006,970) (16,265,464)
4,315,274 - 4,315,274
5,420,175 - 5,420,175
36,783 - 36,783
2,959,714 - 2,959,714
12,525,838 - 12,525,838
141,566 - 141,566
213,239 2,601,120 2,814,359
- 51,881 51,881
- 226,026 226,026
(24,164) 24,164 -
189,075 28,302,541 28,491,616
4,930,581 7,295,571 12,226,152
19,170,609 149,774,365 168,944,974
- 96,420 96,420
149,870,785
$ 24,101,190 157,166,356 $ 181,267,546 $
Net Revenue (Expense) and Change in Net Position
Primary Government

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Packet Pg. 424 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Fund Financial Statements

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Packet Pg. 426 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Balance Sheet – Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -15-
Capital
Projects Fund
General LLPD#2
Community
Facilities
District 2003
(formerly nonmajor) City Capital
Projects
Total NonMajor
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and investments 32,883,118 $ 11,527,789 $ - $ 9,506,098 $ 23,772,832 $ 77,689,837 $ Pension trust cash and investments 1,000,000 - - - - 1,000,000 Restricted cash with fiscal agent 74,348 - - - - 74,348 Receivables, net:

Accounts 1,523,236 - - - 274,668 1,797,904
Interest 643,174 - - - 293,970 937,144
Taxes and assessments 218,702 38,786 26,407 - 1,110,256 1,394,151 Notes 100,000 - - - 2,965,155 3,065,155
Inventory 33,007 - - - - 33,007
Prepaids 200,642 - - - 5,673 206,315
Deposits 38,000 - - - - 38,000
Due from other governments 3,198,005 - - - 1,100,351 4,298,356 Due from other funds 2,557,375 - - - - 2,557,375
Advances receivable 7,601,522 - - - 4,774,413 12,375,935 Land held for resale - - - - 339,807 339,807
Total assets 50,071,129 $ 11,566,575 $ 26,407 $ 9,506,098 $ 34,637,125 $ 105,807,334 $

LIABILITIES
Accounts payable 5,774,453 $ 208,790 $ 1,359,962 $ 384,327 $ 2,423,533 $ 10,151,065 $ Accrued payroll 199,119 - - - 5,448 204,567
Deposits payable 7,885,470 - - - - 7,885,470
Retention payable - - - 190,733 - 190,733
Due to other governments 943 - - - 144,128 145,071
Due to other funds - - - - 939,984 939,984
Unearned revenue 6,272,227 - - - - 6,272,227
Advances payable - - 3,444,897 8,931,038 - 12,375,935
Total liabilities 20,132,212 208,790 4,804,859 9,506,098 3,513,093 38,165,052

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 380,649 - - - 4,869,068 5,249,717

FUND BALANCES
Nonspendable 7,835,171 - - - 345,480 8,180,651
Restricted 74,348 11,357,785 - - 25,385,559 36,817,692
Assigned - - - - 1,499,352 1,499,352
Unassigned 21,648,749 - (4,778,452) - (975,427) 15,894,870 Total fund balances (deficit) 29,558,268 11,357,785 (4,778,452) - 26,254,964 62,392,565 Total liabilities, deferred inflows
of resources and fund balances 50,071,129 $ 11,566,575 $ 26,407 $ 9,506,098 $ 34,637,125 $ 105,807,334 $ Special Revenue Fund

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Packet Pg. 428 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
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. -16-
Fund balance of governmental funds 62,392,565 $
Amounts reported for governmental activities in
the Statement of Net Position are different because:

Net investment in capital assets have not been included as financial resources in governmental funds.

Capital assets not being depreciated 17,792,522
Capital assets being depreciated 224,800,274
Accumulated depreciation/amortization (141,921,045)
Long-term liabilities applicable to governmental activities are not due and payable in the current period and, accordingly, are not reported as governmental fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position.

Compensated absences (683,579)
Special assessment debt and unmatured interest (1,084,259) Lease liabilities (449,956)
Subscription liabilities (144,254)
Loans payable (1,671,158)
Accrued interest payable (7,785)
Net pension liability (12,432,558)
Unavailable revenue balances relating to various accounts and loans receivable are not reported as unavailable revenue in the Statement of Net Position since recognition is not based upon measurable and available criteria.

Low and moderate housing loans receivable 3,375,483
Accrued interest on low and moderate housing loans 208,893 Special assessments receivable 1,665,341
Pension related deferred outflows and inflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.

Deferred outflows of resources - pension related items 4,735,061 Deferred inflows of resources - pension related items (695,749) Internal Service Funds are used by management to charge costs of certain activities on individual funds. The assets and liabilities of the Internal Service Funds must be added to the Statement of Net Position since revenue recognition is not based upon measurable and available criteria.

Fund Net Position of Internal Service Funds 1,286,560
Net position of governmental activities 157,166,356 $

5.A.1.a
Packet Pg. 429 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -17-
General LLPD#2
Community
Facilities District
2003 (formerly
non-major)
City Capital
Projects
TUMF Capital
Projects
(formerly major)

REVENUES
Taxes 19,396,314 $ - $ - $ - $
Assessments - 5,390,227 3,682,515 -
Licenses and permits 1,430,039 - - -
Fines and forfeitures 362,302 - - -
Development fees 102,000 - - -
Intergovernmental 6,471,679 - - -
Charges for services 5,082,013 - - -
Investment earnings 2,557,674 259,651 - -
Other/overhead allocations 5,821,898 49,380 - -
Total revenues 41,223,919 5,699,258 3,682,515 -

EXPENDITURES
Current:

General government 3,753,598 - 16,278 -
Public safety 18,939,127 - 4,230,822 -
Public works 3,294,697 - - -
Community development 6,649,642 4,278,453 - -
Culture and leisure 230,121 - - -
Capital outlay 930,479 - 324,292 3,613,006
Debt service:

Principal 236,658 - - -
Interest 101,985 - 132,490 -
Total expenditures 34,136,307 4,278,453 4,703,882 3,613,006 Excess (deficiency) of revenues
over (under) expenditures 7,087,612 1,420,805 (1,021,367) (3,613,006)

OTHER FINANCING SOURCES (USES)
Proceeds from sale of property 51,881 - - -
Subscription acquisition 201,661 - - -
Transfers in 574,750 - 232,385 3,613,006
Transfers out (2,334,195) - - -
Total other financing sources (uses) (1,505,903) - 232,385 3,613,006 Net change in fund balances 5,581,709 1,420,805 (788,982) - Fund balances (deficit), beginning of year, as previously reported 23,976,559 9,936,980 - - (428,699) $ Change in financial reporting entity (Note 14) - - (3,989,470) - 428,699 Fund balances (deficit), beginning of year, as restated 23,976,559 9,936,980 (3,989,470) - - Fund balances (deficit), end of year 29,558,268 $ 11,357,785 $ (4,778,452) $ - $ - $ Special Revenue Fund Capital Projects Funds

5.A.1.a
Packet Pg. 430 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) The accompanying notes are an integral part of these financial statements. -18-
Total NonMajor
Governmental
Funds
Total
Governmental
Funds
$ 19,929,502 533,188 $
11,423,199 2,350,457
1,430,039 -
981,767 619,465
951,038 849,038
11,738,120 5,266,441
5,082,013 -
3,488,295 670,970
6,123,019 251,741
61,146,992 10,541,300
3,780,503 10,627
23,341,729 171,780
5,695,101 2,400,404
11,436,039 507,944
631,895 401,774
7,581,932 2,714,155
236,658 -
234,475 -
52,938,332 6,206,684
8,208,660 4,334,616
51,881 -
201,661 -
4,449,801 29,660
(4,375,637) (2,041,442)
327,706 (2,011,782)
8,536,366 2,322,834
53,856,199 20,371,359
- 3,560,771
53,856,199 23,932,130
$ 62,392,565 26,254,964 $

5.A.1.a
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5.A.1.a
Packet Pg. 432 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
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. -19-
Net change in fund balances - total governmental funds 8,536,366 $ 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 are allocated over their estimated useful lives as depreciation expense or allocated to the appropriate functional expense when the cost is below the capitalization threshold. Additionally, capital contributions are reported as program revenues in the Statement of Activities.

This activity is reconciled as follows:

Cost of assets capitalized less disposals 4,273,909
Depreciation/amortization expense (6,028,765)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the fund. 551,818 Long-term debt proceeds provide current financial resources to Governmental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. Principal repayments of long-term debt are expenditures/uses in the Governmental Funds, but they reduce long-term liabilities in the Government-Wide Statement of Net Position.

Repayments:
2018 street light financing 130,223
Lease liabilities 220,508
Subscription liabilities 371,336
Issuance:

Subscription acquisition (201,661)
Some 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.

Change in compensated absences (88,828)
Change in accrued interest payable 190
Pension expense net of adjustments (597,543)
Internal Service Funds are used by management to charge the cost of insurance to individual funds. The net revenue of the Internal Service Funds are reported with governmental activities. 128,018
Change in net position of governmental activities 7,295,571 $

5.A.1.a
Packet Pg. 433 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Statement of Net Position – Proprietary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -20-
Governmental
Activities
Water Sewer Power Total
Internal
Service Fund
ASSETS
Current assets:

Cash and investments 5,701,874 $ 2,015,116 $ 10,057 $ 7,727,047 $ 584,441 $ Receivables, net:

Accounts 1,015,652 384,695 9,361,972 10,762,319 53,538
Deposits with others - - - - 1,143,516
Inventories 525,918 - - 525,918 -
Prepaid expenses 21,915 7,823 2,210,000 2,239,738 42,912 Due from other governments 13,930 2,498 - 16,428 -
Total current assets 7,279,289 2,410,132 11,582,029 21,271,450 1,824,407 Non-current assets:

Capital assets:

Land 55,222 - - 55,222 -
Construction in progress 3,804,713 880,744 - 4,685,457 - Building and system 6,677,062 31,301 - 6,708,363 -
Machinery and equipment 6,975,000 1,073,938 14,564 8,063,502 - Improvements other than buildings 6,034,728 3,824,233 - 9,858,961 - Right-to-use assets 278,529 42,256 - 320,785 -
Less accumulated depreciation/amortization (12,159,884) (3,048,503) (5,826) (15,214,213) - Total non-current assets 11,665,370 2,803,969 8,738 14,478,077 - Total assets 18,944,659 5,214,101 11,590,767 35,749,527 1,824,407

DEFERRED OUTFLOWS OF RESOURCES
Pension related 769,770 384,885 - 1,154,655 -
Total deferred outflows of resources 769,770 384,885 - 1,154,655 -

LIABILITIES
Current liabilities:

Accounts payable 539,369 398,099 3,713,444 4,650,912 58,808 Accrued wages 30,444 18,177 2,238 50,859 8,907
Accrued interest 40,452 - - 40,452 -
Deposits payable 406,056 - - 406,056 -
Due to other funds - - 1,617,391 1,617,391 -
Long term liabilities, current portion 233,420 17,843 4,203 255,466 - Total current liabilities 1,249,741 434,119 5,337,276 7,021,136 67,715 Non-current liabilities:

Claims payable - - - - 470,132
Long term liabilities, net of current portion 2,886,985 34,013 11,442 2,932,440 - Net pension liability 1,817,924 908,962 - 2,726,886 -
Total non-current liabilities 4,704,909 942,975 11,442 5,659,326 470,132 Total liabilities 5,954,650 1,377,094 5,348,718 12,680,462 537,847

DEFERRED INFLOWS OF RESOURCES
Pension related 81,687 40,843 - 122,530 -

NET POSITION
Net investment in capital assets 8,673,712 2,801,063 8,738 11,483,513 - Unrestricted 5,004,380 1,379,986 6,233,311 12,617,677 1,286,560 Total net position 13,678,092 $ 4,181,049 $ 6,242,049 $ 24,101,190 $ 1,286,560 $ Business-type Activities
Enterprise Funds

5.A.1.a
Packet Pg. 434 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
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. -21-
Governmental
Activities
Water Sewer Power Total
Internal
Service Fund

OPERATING REVENUES
Sales and charges for services 6,786,099 $ 1,264,982 $ 25,533,034 $ 33,584,115 $ 2,507,882 $ Miscellaneous/sale of ground water 1,559,003 493,475 532,625 2,585,103 44,404 Total operating revenues 8,345,102 1,758,457 26,065,659 36,169,218 2,552,286

OPERATING EXPENSES
Personnel services 944,742 492,071 74,038 1,510,851 340,994 Employee benefits 552,474 272,742 35,405 860,621 137,443 Office expense & field supplies 478,631 56,918 36,107 571,656 17,923 Depreciation 886,388 260,396 972 1,147,756 -
Outside services 937,643 160,226 680,045 1,777,914 1,605,373 Repairs and maintenance 268,102 179,601 - 447,703 256,770 Utilities 613,990 3,985 - 617,975 3,105
Overhead allocations 962,216 372,469 111,043 1,445,728 - Watermaster charges 2,101,484 - - 2,101,484 -
Energy purchases - - 20,797,652 20,797,652 -
Claims and judgements - - - - 12,660
Total operating expenses 7,745,670 1,798,408 21,735,262 31,279,340 2,374,268 Operating income (loss) 599,432 (39,951) 4,330,397 4,889,878 178,018

NON-OPERATING REVENUES (EXPENSES)
Investment earnings 151,053 62,186 - 213,239 -
Interest and fiscal charges (105,996) (2,608) (139,768) (248,372) - Capital contributions - 100,000 - 100,000 -
Total non-operating revenues (expenses) 45,057 159,578 (139,768) 64,867 - Other income (expense) before transfers 644,489 119,627 4,190,629 4,954,745 178,018 Transfers out (24,164) - - (24,164) (50,000)
Change in net position 620,325 119,627 4,190,629 4,930,581 128,018 Net position, beginning of year 13,057,767 4,061,422 2,051,420 19,170,609 1,158,542 Net position, end of year 13,678,092 $ 4,181,049 $ 6,242,049 $ 24,101,190 $ 1,286,560 $ Business-type Activities
Enterprise Funds

5.A.1.a
Packet Pg. 435 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Statement of Cash Flows - Proprietary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -22-
Governmental
Activities
Water Sewer Power Total
Internal
Service Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 8,255,355 $ 1,727,285 $ 22,353,562 $ 32,336,202 $ 2,629,946 $ Cash payments to suppliers (5,089,226) (827,601) (21,121,067) (27,037,894) (1,871,204) Cash payments to employees for services (1,414,411) (717,803) (106,728) (2,238,942) (478,376) Net cash provided by
operating activities 1,751,718 181,881 1,125,767 3,059,366 280,366

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds - - - - (50,000)
Transfers to other funds (24,164) - - (24,164) -
Cash (paid) received from other funds - - (975,942) (975,942) (47,337) Net cash provided by (used for) non-capital
financing activities (24,164) - (975,942) (1,000,106) (97,337)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition or construction of capital assets (1,988,240) (871,720) - (2,859,960) - Developer contributions - 100,000 - 100,000 -
Lease principal paid (40,125) (98,239) - (138,364) -
Bond principal paid (121,950) - - (121,950) -
Interest and fiscal charges paid (105,512) (2,608) (139,768) (247,888) - Net cash used for capital and
related financing activities (2,255,827) (872,567) (139,768) (3,268,162) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 151,053 62,186 - 213,239 -
Net cash provided by
investing activities 151,053 62,186 - 213,239 -
Net change in cash and cash equivalents (377,220) (628,500) 10,057 (995,663) 183,029 Cash and cash equivalents, beginning of year 6,079,094 2,643,616 - 8,722,710 401,412 Cash and cash equivalents, end of year 5,701,874 $ 2,015,116 $ 10,057 $ 7,727,047 $ 584,441 $ Governmental
Activities
Water Sewer Power Total
Internal
Service Fund
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:

Operating income (loss) 599,432 $ (39,951) $ 4,330,397 $ 4,889,878 $ 178,018 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation 886,388 260,396 972 1,147,756 -
Change in compensated absences 14,342 10,486 2,715 27,543 - (Increase) decrease in assets:

Accounts receivable (45,503) (31,172) (3,712,097) (3,788,772) 77,660 Inventories 145,497 - - 145,497 -
Prepaid expenses (14,062) (701) (2,006,825) (2,021,588) 83,467 Deposits with others - - - - (97,167)
Due from other governments (13,930) - - (13,930) -
Deferred outflows of resources 1,920 960 - 2,880 -
Increase (decrease) in liabilities:

Accounts payable 141,405 (53,701) 2,510,605 2,598,309 (3,310) Accrued wages 3,602 4,093 - 7,695 61
Deposits payable (30,314) - - (30,314) -
Claims payable - - - - 41,637
Deferred inflows of resources (893,102) (26,762) - (919,864) - Net pension liability 956,043 58,233 - 1,014,276 -
Total adjustments 1,152,286 221,832 (3,204,630) (1,830,512) 102,348 Net cash provided by (used for) operating activities 1,751,718 $ 181,881 $ 1,125,767 $ 3,059,366 $ 280,366 $ Enterprise Funds
Business-type Activities -
Enterprise Funds
Business-type Activities -

5.A.1.a
Packet Pg. 436 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Fiduciary Funds

5.A.1.a
Packet Pg. 437 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) This page left intentionally blank

5.A.1.a
Packet Pg. 438 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Statement of Fiduciary Net Position – Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -23-
Private
Purpose
Trust Fund Custodial Fund
ASSETS
Cash and investments 325,104 $ 1,540,876 $
Cash and investments with fiscal agents 140 2,009,578
Receivables:

Due from other governments 234,046 8,110
Property held for resale 53,672 -
Capital assets:

Land 220,227 -
Total assets 833,189 3,558,564

DEFERRED OUTFLOW OF RESOURCES
Loss on refunding 2,647 -

LIABILITIES
Accounts payable and accrued liabilities 100,215 -
Unearned revenue 89,918 -
Long-term liabilities:

Due within one year 355,000 -
Due in more than one year 4,590,000 -
Total liabilities 5,135,133 -

NET POSITION (DEFICIT)
Held for dissolution of Redevelopment Agency (4,299,297) - Restricted for bondholders - 3,558,564
Total net position (4,299,297) $ 3,558,564 $

5.A.1.a
Packet Pg. 439 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Statement of Changes in Fiduciary Net Position – Fiduciary Funds For the Year Ended to June 30, 2024
The accompanying notes are an integral part of these financial statements. -24-
Private
Purpose Custodial
Trust Fund Fund

ADDITIONS
Property taxes 603,898 $ 1,509,895 $
Investment earnings 8,027 128,153
Total additions 611,925 1,638,048

DEDUCTIONS
Administrative payments 30,425 46,866
Principal payments to bondholders - 775,000
Interest expense 234,765 625,894
Total deductions 265,190 1,447,760
Change in net position 346,735 190,288
Net position (deficit), beginning of year (4,646,032) 3,368,276 Net position (deficit), end of year (4,299,297) $ 3,558,564 $

5.A.1.a
Packet Pg. 440 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Notes to the Basic Financial Statements

5.A.1.a
Packet Pg. 441 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) This page left intentionally blank

5.A.1.a
Packet Pg. 442 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-25-
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of significant accounting policies
a. Reporting entity
The City of San Jacinto (City) was incorporated on April 20, 1888 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. As required by generally accepted accounting principles, these financial statements present the City of San Jacinto (the primary government) and its component units. The component units discussed below are included in the reporting entity because of their operational or financial relationships with the City of San Jacinto.

Blended component units:

San Jacinto Financing Authority
The Authority is a joint exercise of powers authority organized and existing under and by virtue of the Joint Exercise of Powers Act. The City formed the Authority by the execution of a joint exercise of powers agreement dated as of May 25, 1993 and amended and restated in its entirety on May 19, 1997 by and between the City and the former Redevelopment Agency. Pursuant to the Joint Powers Act, the Authority is authorized to issue revenue bonds to provide funds to make loans to public entities; such revenue bonds are to be repaid from the repayments of such loans. The Authority is governed by a five-member Board which consists of all members of the City Council. The Mayor of the City is the Chairperson of the Authority. The City Manager acts as the Executive Director, the City Clerk acts as the Secretary and the Finance Director of the City acts as the Treasurer of the Authority. Debts issued through the San Jacinto Financing Authority are expected to be repaid with City resources. Accordingly, separate financial statements for the Financing Authority are not prepared.

Industrial Development Authority
The Industrial Development Authority of the City of San Jacinto was activated by the City Council of the City of San Jacinto. The purpose of the Industrial Development Authority is to assist the community in industry development by providing a financing mechanism to encourage such development in the City. Separate financial statements for the Industrial Development Authority are not currently prepared.

As the governing bodies of the San Jacinto Financing Authority and Industrial Development Authority are composed entirely of the council members of the City, the above component units were included within the scope of the reporting entity of the City.

5.A.1.a
Packet Pg. 443 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-26-
Note 1: Summary of significant accounting policies (continued) b. Government-wide and fund financial statements
The government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. Certain eliminations have been made as prescribed by generally accepted accounting principles in regard to interfund activities, payables, and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on user fees and charges for support.

The statement of activities demonstrates the degree to which the direct and indirect 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, including special assessments, that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenue are reported instead as general revenues. In the statement of activities, Internal Service Fund transactions have been eliminated; however, those transactions between the governmental and business-type activities have not been eliminated.

Separate financial statements are provided for governmental, proprietary, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
c. Measurement focus, basis of accounting, and financial statement presentation The government-wide statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the cash flows. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.

5.A.1.a
Packet Pg. 444 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-27-
Note 1: Summary of significant accounting policies (continued) c. Measurement focus, basis of accounting, and financial statement presentation (continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified-accrual basis of accounting. Under the modified-accrual basis of accounting, revenues are recognized in these funds when susceptible to accrual (i.e., when they are both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers property taxes collected after year-end, as available if they are collected within 60 days of the end of the current fiscal period. Other revenues susceptible to accrual include sales tax, state gasoline taxes, utility user’s tax, investment income, and certain other intergovernmental revenues. Expenditures in the governmental funds are generally recognized in the accounting period in which the related fund liability is incurred, if measurable, except for unmatured principal and interest on general long-term debt, as well as compensated absences and claims and judgments, which are recognized when due.

The City reports the following major governmental funds:

The General Fund is the government'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 LLPD#2 Special Revenue Fund is used to account for special assessment tax revenue activity in the City’s Districts, restricted for maintenance and service to District facilities.

The Community Facilities District 2003 Fund is used to account for special assessments levied on real property to mitigate the cost of Public Safety.

The City Capital Projects Fund is used to account for construction from various sources.

The City reports the following major proprietary funds:

The Water Fund is used to account for the provision of water services to the residences and businesses of part of the City.

The Sewer Fund is used to account for the revenues and expenses in connection with the operation and improvement of the City's sewer system.

The Power Fund is used to account for the revenues and expenses in connection with the Community Choice Aggregation (CCA) program, which allows the City to purchase and generate electricity for residents and businesses within the City.

Additionally, the City reports the following fund types:

The Internal Service Funds are used to account for the resources, goods, and services that are provided by one department to other departments or agencies of the City on a cost-reimbursement basis. The City’s Internal Service Fund accounts for Workers Compensation and General Liability Insurance services.

5.A.1.a
Packet Pg. 445 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-28-
Note 1: Summary of significant accounting policies (continued) c. Measurement focus, basis of accounting, and financial statement presentation (continued) The Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the Redevelopment Agency to the City of San Jacinto. The fund's primary purpose is to expedite the dissolution of the former Agency's net position (except for the low and moderate income housing funds non-cash assets) in accordance with AB X1 26 and AB 1484.

The Custodial Funds are used to account for the resources held by the City in a fiduciary capacity.

The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles, and the City has adopted all pronouncements of the GASB.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

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 a proprietary fund's principal ongoing operations. The principal operating revenues for the Enterprise Funds are charges for goods and services. Operating expenses for these same Enterprise Funds include the cost of sales and services, administration expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City's fiduciary funds include a custodial fund for the administration of the 2002-1 CFD debt issuance.
d. Accounting for encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental fund types.
e. Cash and investments
For the purpose of the statement of cash flows, the City considers cash and cash equivalents as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling cash and investments of all funds. Since cash and investments are pooled the City utilizes the assumption that cash and investments in the Enterprise and Internal Service Funds are cash and cash equivalents.

5.A.1.a
Packet Pg. 446 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-29-
Note 1: Summary of significant accounting policies (continued) f. Restricted cash and investments
Cash and investments restricted as to their use either by bond resolution or by the funding source to a specific purpose are classified as restricted cash and investments. g. Inventories
Inventories of materials and supplies are valued at cost using the first-in, first-out basis. The City uses the consumption method of accounting for inventories. h. Prepaid expenses
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 purchased. i. Property held for resale
The governmental activities has land held for resale of $339,807. The Successor Agency has property held for resale with a net realizable value of $53,672. j. Capital assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets (excluding infrastructure) are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Infrastructure assets are defined by the City as assets with an initial, individual cost of more than $50,000 and an estimated useful life in excess of two years. Such assets are capitalized at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of acquisition.

Property, plant and equipment of the City is depreciated using the straight-line method over the following useful lives:

Buildings 40 years
Improvements 40 years
Equipment 3 to 7 years
Infrastructure 20 to 80 years
k. Intangible Assets
Intangible Right to Use assets are related to equipment or real property that the City has obtained the right to utilize for a specified period of time through the use of a lease agreement. The lift of the right to use asset is for the same period as the lease and amortized on a straight-line basis over that period.

5.A.1.a
Packet Pg. 447 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-30-
Note 1: Summary of significant accounting policies (continued) l. Judgments and claims
The City utilizes its internal service funds to account for judgments and claims. Self-insurance claims payable of $6,336 and $463,796, respectively, are recorded in the Workers’ Compensation and Liability Insurance funds.
m. Compensated absences
In accordance with current standards, a liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement and are generally liquidated by the General Fund.

Under current standards, a liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in payments upon termination. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.

In governmental funds, compensated absences (unpaid vacation and sick leave) are recorded as expenditures in the year they are paid. The balance of unpaid vacation and vested sick leave at year end is recorded in the government-wide financial statements as these amounts will be liquidated from future resources.

Sick leave is payable when an employee is unable to work because of illness. Employees may accrue sick leave up to a maximum of 960 hours. There is a sick leave buyback program. An employee with 2 years of service may sell up to 96 hours of sick leave at the end of the calendar year. After 5 years of service, employees who voluntarily leave or are laid off may cash out sick leave upon separation from service.
n. Interfund advances
The City Capital Projects Fund accounts for the City capital projects expenditures. It is the City’s policy and practice to transfer cash (advance funds), even if not yet received, to the City Capital Projects Fund at the time of project commitment. Advances payable from the City Capital Projects Fund and receivable to the advancing fund, are recorded to reflect the outstanding amounts advanced at June 30, 2024. When funds are expended at the City’s Capital Projects Fund a transfer is recorded between the two funds and the advance is respectively relieved. o. Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as they are needed.

5.A.1.a
Packet Pg. 448 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-31-
Note 1: Summary of significant accounting policies (continued) p. Use of estimates in the preparation of financial statements The financial statements have been prepared in accordance with generally accepted accounting principles and necessarily include amounts based on estimates and assumptions by management.

Actual results could differ from those amounts.
q. Property tax calendar
In 1978, a state constitutional amendment (Proposition 13) provided that the property tax rate be generally limited to 1% of market value, levied only by the county and shared with all other jurisdictions. 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 March preceding the fiscal year for which the taxes are levied.

The tax levy covers the fiscal period July 1st to June 30th. All secured personal property taxes and one-half of the taxes on real property are due November 1st; the second installment is due February 1st. All taxes are delinquent, if unpaid, on December 10th and April 10th, respectively.

Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31st. For governmental funds, City property tax revenues are recognized when levied to the extent that they result in current receivables collectible within 60 days. In the government-wide statements, revenues are recognized in the year taxes are levied. r. Pension plan
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.

Investments are reported at fair value.

Generally Accepted Accounting Pronciples requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
s. Fund balance
Fund balance is classified into five different components. The components are nonspendable, restricted, committed, assigned, and unassigned.
 Nonspendable - resources that are not in spendable form or required to be maintained intact such as an endowment.
 Restricted - resources that are subject to externally enforceable legal restrictions; these restrictions are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation.

5.A.1.a
Packet Pg. 449 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-32-
Note 1: Summary of significant accounting policies (continued) s. Fund balance (continued)
 Committed - resources that are constrained to specific purposes by a formal action of the City Council such as an ordinance or resolution, whichever is the higher level of constraint. The constraint remains binding unless removed in the same formal manner by the City Council.

Council action to commit fund balance must occur within the fiscal reporting period while the amount committed may be determined subsequently.
 Assigned - resources that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed.
 Unassigned - within the General Fund, the residual resources, either positive or negative, in excess of what can be properly classified in one of the other four fund balance categories. Within all other governmental funds, any negative residual resources.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to first apply committed fund balance, then assigned fund balance, and finally unassigned fund balance.

Those charged with governance approved the Finance Director to have authority to assign unrestricted fund balance amounts where the City’s intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements.
t. Deferred outflows/inflows of resources
In addition to assets, the statement of financial position (balance sheet) will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position (balance sheet) will sometimes report a separate section for deferred inflows of resources. This separate financial element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. u. Implementation of new GASB pronouncement
The Governmental Accounting Standards Board (GASB) has issued Statement No. 100, Accounting Changes and Error Corrections: The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, see Note 14 for additional details.

5.A.1.a
Packet Pg. 450 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-33-
II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Note 1: Summary of significant accounting policies (continued) a. Budgetary principles
General budget policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public meetings are conducted prior to its adoption by the Council.

Supplemental appropriations, where required during the period, are also approved by the Council.

Several supplemental appropriations were made during the year. Intrafund budget changes are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the department level. At fiscal year-end all unencumbered operating budget appropriations lapse with the exception of continuing appropriations.

General Fund expenditures may not legally exceed budgeted appropriations. Budgeted revenue amounts, as presented in the accompanying basic financial statements, represent the original budget as modified by adjustments during the year for those items which were contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year. b. Excess of expenditures over appropriations
Excess of expenditures over appropriations by department in individual funds with budgets presented are as follows:

Final Budget Expenditures Excess
General Fund by Function:

Public works 2,922,518 $ 3,294,697 $ (372,179) $
Culture and leisure 140,339 230,121 (89,782)
Capital outlay 803,167 930,479 (127,312)
Community Facilities District 2003 by Function:

Public safety 4,162,549 4,230,822 (68,273)
Capital outlay 84,000 324,292 (240,292)
Debt service:

Interest 20,000 132,490 (112,490)
Non-major governmental funds by function:

CSA 152
Public works 498,507 512,843 (14,336)
Air Quality Improvement
Public works 8,443 73,055 (64,612)
AB3229 COPS Program
Capital outlay 175,128 302,470 (127,342)
Special District Administration
Community development 266,142 307,837 (41,695)
CFD 2018-1
Community development 3,395 3,817 (422)
Assessment District 87-1 Debt Service
General government 2,050 2,150 (100)

5.A.1.a
Packet Pg. 451 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-34-
Note 1: Summary of significant accounting policies (continued) c. Negative fund balance and other disclosures
The following funds had negative fund balances at June 30, 2024:

Amount
Capital Projects Fund:

Community Facilities District 2003 (4,778,452) $
Special revenue:

Traffic Safety (64,495)
CSA 152 (172,264)
AB3229 COPS Program (152,342)
CDBG (30,071)
Capital projects:

TUMF Capital Projects (276,712)
Debt service:

Assessment District 87-1 (273,895)
Governmental Funds - Non-Major Funds
Governmental Funds - Major Funds
The City plans to eliminate negative fund balance in the Community Facilities District 2003 fund (currently covered by a loan from the General Fund) with increased revenues from future growth, decreased future expenditures, and paying off the loan from the General Fund.

The City plans to eliminate negative fund balance in the Traffic Safety Fund and AB3229 COPS Program with ongoing revenue streams and cost control measures.

The City plans to eliminate negative fund balance in the CSA 152 and CDBG funds with future reimbursements from the County of Riverside.

The City plans to eliminate negative fund balance TUMF Capital Projects fund with future cost reimbursements from WRCOG.

The City plans to eliminate negative fund balance with the proceeds of property taxes received when properties in the district are sold.

5.A.1.a
Packet Pg. 452 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-35-
III. DETAIL NOTES ON ALL FUNDS
Note 2: Cash and investments
Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Statement of Net Position
Governmental activities:

Cash and investments 78,274,278 $
Pension trust fund 1,000,000
Cash and investments with fiscal agents, restricted 74,348 Business-type activities:

Cash and investments 7,727,047
Total 87,075,673
Statement of Fiduciary Net Position
Cash and investments 1,865,980
Cash and investments with fiscal agents 2,009,718
Total 3,875,698
Total cash and investments $ 90,951,371
Cash and investments are comprised of the following:

Demand accounts/money market account 23,002,104 $
Cash on hand 6,050
Investments 67,943,217
Total $ 90,951,371
The City follows the practice of pooling cash and investments for all funds except for funds required to be held by outside fiscal agents under the provisions of bond indentures.

Interest income earned on pooled cash and investments is allocated monthly by the City to the various funds based on the month-end cash balance. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

Investments authorized by the California Government Code and the City’s investment policy The table on the following page identifies the investment types that are authorized for the City’s investment policy. The table also identifies certain provisions of the City’s investment policy 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.

5.A.1.a
Packet Pg. 453 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-36-
Note 2: Cash and investments (continued)
Investments authorized by the California Government Code and the City’s investment policy, (continued)
Maximum Maximum
Investment Types Maximum Percentage Investment
Authorized by State Law Maturity Allowed* in One Issuer U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Commercial Paper 270 days 25% 5%
Bankers' Acceptance 180 days 40% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Non-Negotiable Certificates of Deposit 5 years 20% 5%
Certificate of Deposit Placement Service (CDARS) 5 years 30% None Collateralized Bank Deposits N/A None None
Repurchase Agreements 1 year None None
Medium-Term Corporate Notes 5 years 30% 5%
Money Market Mutual Funds N/A 20% None
Municipal Obligations 5 years 30% 5%
Mutual Funds N/A 10% None
Supranationals 5 years 30% 10%
Asset-Backed Securities 5 years 20% None
Time Deposits N/A 20% None
Local Agency Investment Fund (LAIF) N/A 70% 75,000,000 $ Riverside County Investment Fund N/A 70% None
JPA Pools N/A 50% None
California Asset Management Program N/A 50% None
*Based on state law requirements or investment policy requirements, whichever is more restrictive.

Investments authorized by debt agreements
Provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy govern investment of debt proceeds held by bond trustees. The table below identifies the investment types that are authorized for investments held by bond trustees.

The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Allowed in One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Agreements None None None
Certificates of Deposit, Savings Account None None None Municipal Obligations None None None
Repurchase Agreements None None None
Local Agency Investment Fund (LAIF) None None 75,000,000 $

5.A.1.a
Packet Pg. 454 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-37-
Note 2: Cash and investments (continued)
Disclosures relating to 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 flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Investment Type Totals 12 or Less 13 to 24 25 to 60
Local Agency Investment Fund (LAIF) 45,571,981 $ 45,571,981 $ - $ - $ U.S. Treasury Obligations 14,229,104 367,661 4,197,276 9,664,167 U.S. Agency Securities 3,332,766 753,632 1,202,614 1,376,520 Asset-Backed Securities 174,599 - 80,969 93,630
Medium-Term Corporate Notes 3,860,792 528,058 395,883 2,936,851 Supranational Bonds 386,788 - 214,243 172,545
Municipal Bonds 245,201 - 14,940 230,261
Held by Bond Trustees:

Money Market Funds 141,986 141,986 - -
Total 67,943,217 $ 47,363,318 $ 6,105,925 $ 14,473,974 $ Remaining Maturity (In Months)
Disclosures relating to 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 (Standard & Poor’s). Presented below is the minimum rating required by (where applicable) the City’s investment policy or debt agreements, and the actual rating as of year-end for each investment type.

Minimum
Investment Type Totals legal rating AAA to AA- A+ to B Not rated Local Agency Investment Fund (LAIF) 45,571,981 $ N/A - $ - $ 45,571,981 $ U.S. Treasury Obligations 14,229,104 N/A 14,229,104 - - U.S. Agency Securities 3,332,766 N/A 3,332,766 - -
Asset Backed Securities 174,599 AA 174,599 - -
Medium-Term Corporate Notes 3,860,792 A 1,606,459 2,254,333 - Supranational Bonds 386,788 A 386,788 - -
Municipal Bonds 245,201 A 245,201 - -
Held by Bond Trustees:

Money Market Funds 141,986 AAA 141,986 - -
Total 67,943,217 $ 20,116,903 $ 2,254,333 $ 45,571,981 $ Rating as of year end

5.A.1.a
Packet Pg. 455 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-38-
Note 2: Cash and investments (continued)
Concentration of credit risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City had no investments in any one issuer (other than U.S. Treasury Securities, mutual funds and external investment pools) that represented 5% or more of total City investments.

Custodial credit risk
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 its 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 (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits, and other eligible securities as defined by Government Code Sections 53651 and 53652. As of June 30, 2024, the City held deposits with financial institutions in excess of Federal Depository Insurance Corporation (FDIC) limits. These funds were held in collateralized accounts as required by the California Government Code as stated above.

With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a City’s indirect investment in securities through the use of mutual funds or government investment pools, including LAIF. Pursuant to the agreement with financial institutions where certificates of deposit are held, the securities pledged are consistent with the collateral as noted in the previous paragraph held by the financial institution’s custodian but not in the City’s name.

Investment in investment pools
The City is a voluntary participant in LAIF which is regulated by the California Government Code under the oversight of the Treasurer of the State of California. 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.

Currently, LAIF does not have an investment rating. LAIF has a minimum $5,000 transaction amount in increments of $1,000 with a maximum of 15 transactions (combination of deposits and withdrawals) per month. LAIF requires a one-day prior notice for deposits and withdrawals of $10 million or more.

5.A.1.a
Packet Pg. 456 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-39-
Note 2: Cash and investments (continued)
LAIF is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee comprised of California State officials and various participants provide oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's office. LAIF allows a total investment of $75,000,000.

Fair value of investments
The City reports its investments at fair value, or amortized cost in the balance sheet. All investment income, including changes in the fair value of investments, is recognized, as revenue in the operating statement.

The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City uses the market approach in valuing its Level 1 and Level 2 investments. The City has the following recurring fair value measurements as of June 30, 2024:

Total Level 1 Level 2 Level 3
Asset-Backed Securities 174,599 $ - $ 174,599 $ - $
U.S. Agency Securities 3,332,766 - 3,332,766 -
Medium Team Corporate Notes 3,860,792 - 3,860,792 -
Supranational Bonds 386,788 - 386,788 -
U.S. Treasury Obligations 14,229,104 - 14,229,104 -
Municipal Bonds 245,201 - 245,201 -
Total investments by fair value level 22,229,250 - $ 22,229,250 $ - $ Investments not subject to fair value measurement:

Money Market Fund 141,986
Local Agency Investment Fund (LAIF) 45,571,981
Total 67,943,217 $
Investments by Fair Value Level
Fair Value Measurement Using

5.A.1.a
Packet Pg. 457 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-40-
Note 3: Notes Receivable
Notes receivable Balance at
June 30, 2024
(a) In FY 2006-2007 and FY 2007-2008 the former Redevelopment Agency made a loan to a developer for a low and moderate income housing project. Amounts provided to the developer were for $1,238,225 and $1,061,775 in fiscal years 2007 and 2008, respectively. There are no annual set or structured payments. The promissory note will accrue interest at the rate of one percent per year simple interest and shall be repaid from the cash flow of the project and shall be due and payable by the expiration or termination of the affordability covenants which is 55 years from the completion of the project. The project was completed on October 2, 2008. Pursuant to AB XI 26, the Redevelopment Agency of the City of San Jacinto was dissolved and this asset was transferred to the City's Successor Housing Authority Fund. $ 2,300,000
(b) The former Redevelopment Agency operates various loan and grant programs to assist residents who meet certain qualifications for the purpose of providing home rehabilitation and home ownership assistance to low and moderate income households. The loans are secured by a deed of trust and no monthly payments are required. At the end of the 45-year term, the loans are forgiven unless the following occurs during the grant term: 1) property is sold or transferred or 2) property is no longer owner-occupied, at which time full repayment would be required. Pursuant to AB XI 26, the Redevelopment Agency of the City of San Jacinto was dissolved and this asset was transferred to the City's Successor Housing Authority Fund. Additionally, the asset has been formally recognized on the balance sheet, whereas in the past it has only been referenced by note disclosure. 665,155
(c) In FY 2019-2020, the City loaned a local business $180,000 in accordance with its established policy of actively promoting economic development within the City.

The loan accrues interest at an equivalent of the prevailing prime rate plus 2%.

Provided the borrower maintains and operates during all of the term and is not in default of any of the terms of the agreement, then, in consideration of the public benefit received by the City, the total outstanding balance of the loan shall be reduced by ten percent (10%) a year during the term and the borrower shall not be required to make any payments to the City during the term, and the entire unpaid balance of the loan and accrued interest thereon shall be canceled and discharged on the loan's maturity date, which shall be ten (10) years from the date of the promissory note. 100,000
Note receivable total 3,065,155
Accrued interest on note receivable (a) above 208,893
Note receivable and accrued interest total 3,274,048 $

5.A.1.a
Packet Pg. 458 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-41-
Note 4: Capital assets
Capital asset activity for governmental activities for the year ended June 30, 2024 was as follows:

Balance at Balance at
June 30, 2023 Additions Deletions June 30, 2024
Governmental activities:

Capital assets not being depreciated:

Land 5,799,840 $ - $ - $ 5,799,840 $
Construction in progress 11,727,698 2,773,593 (2,508,609) 11,992,682 Total capital assets not
being depreciated 17,527,538 2,773,593 (2,508,609) 17,792,522 Capital assets being depreciated/amortized:

Building and system 7,216,278 - - 7,216,278
Machinery and equipment 7,689,116 975,977 (129,544) 8,535,549 Improvements other than building 5,480,877 1,536,445 - 7,017,322 Infrastructure 199,175,957 1,294,842 - 200,470,799
Right-to-use assets - leases* 1,048,065 - (29,742) 1,018,323 Right-to-use assets - subscriptions 386,403 201,661 (46,061) 542,003 Total capital assets
being depreciated/amortized 220,996,696 4,008,925 (205,347) 224,800,274 Less accumulated depreciation/amortization for:

Building and system (3,279,766) (171,024) - (3,450,790) Machinery and equipment (4,905,891) (461,118) 129,544 (5,237,465) Improvements other than building (3,322,314) (231,690) - (3,554,004) Infrastructure (124,123,358) (4,629,399) - (128,752,757) Right-to-use assets - leases (405,052) (208,713) 29,742 (584,023) Right-to-use assets - subscriptions (61,246) (326,821) 46,061 (342,006) Total accumulated depreciation/amortization (136,097,627) (6,028,765) 205,347 (141,921,045) Total capital assets being depreciated/amortized, net 84,899,069 (2,019,840) - 82,879,229 Governmental activities capital assets, net 102,426,607 $ 753,753 $ (2,508,609) $ 100,671,751 $ Depreciation and amortization expense for governmental activities was charged to functions/programs of the primary government as follows:

Governmental activities:

General government $ 510,785
Public safety 571,209
Public works 4,909,865
Community development 36,906
Total depreciation/amortization expense - governmental activities 6,028,765 $

5.A.1.a
Packet Pg. 459 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-42-
Note 4: Capital assets (continued)
Capital asset activity for business-type activities for the year ended June 30, 2024 was as follows:

Balance at Balance at
June 30, 2023 Additions Deletions June 30, 2024
Business-type activities:

Capital assets not being depreciated
Land 55,222 $ - $ - $ 55,222 $
Construction in progress 2,070,490 2,614,967 - 4,685,457 Total capital assets not
being depreciated/amortized 2,125,712 2,614,967 - 4,740,679 Capital assets being depreciated/amortized:

Building and system 6,708,363 - - 6,708,363
Machinery and equipment 7,939,721 123,781 - 8,063,502
Improvements other than building 9,842,056 16,905 - 9,858,961 Right-to-use assets - leases 216,478 104,307 - 320,785
Total capital assets
being depreciated/amortized 24,706,618 244,993 - 24,951,611 Less accumulated depreciation/amortization for:

Building and system (3,564,411) (133,739) - (3,698,150) Machinery and equipment (4,378,809) (446,951) - (4,825,760) Improvements other than building (6,034,173) (403,885) - (6,438,058) Right-to-use assets - leases (89,064) (163,181) - (252,245) Total accumulated depreciation/amortization (14,066,457) (1,147,756) - (15,214,213) Total capital assets being depreciated/amortized, net 10,640,161 (902,763) - 9,737,398 Business-type activities capital assets, net 12,765,873 $ 1,712,204 $ - $ 14,478,077 $ Depreciation expense for business-type activities was charged to functions/programs of the primary government as follows:

Business-type activities:

Water $ 886,388
Sewer 260,396
Power 972
Total depreciation/amortization expense - business-type activities 1,147,756 $

5.A.1.a
Packet Pg. 460 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-43-
Note 5: Long-term liabilities
a. Changes in long-term liabilities
Changes in long-term liabilities during the year ended June 30, 2024 were as follows:

Balance at Balance at Due within
June 30, 2023 Additions Deletions June 30, 2024 one year Governmental activities
Long-term debt
Direct borrowing:
2018 Street Light Financing 1,801,381 $ - $ (130,223) $ 1,671,158 $ 137,605 $ Subtotal long-term debt 1,801,381 - (130,223) 1,671,158 137,605 Other long-term liabilities
Special assessment debt with
governmental commitment 455,000 - - 455,000 -
Matured unpaid interest on special
assessment debt with government
commitment 629,259 - - 629,259 -
Lease liabilities 670,464 - (220,508) 449,956 175,108
Subscription liabilities 313,929 201,661 (371,336) 144,254 121,907 Claims and judgment 428,495 41,637 - 470,132 -
Compensated absences 594,751 88,828 - 683,579 192,859
Subtotal other long-term liabilities 3,091,898 332,126 (591,844) 2,832,180 489,874 Total long-term liabilities 4,893,279 $ 332,126 $ (722,067) $ 4,503,338 $ 627,479 $ Business-type activities
Long-term debt
Direct borrowing:
2015 Installment sale 3,043,515 $ - $ (121,950) $ 2,921,565 $ 138,090 $ Subtotal long-term debt 3,043,515 - (121,950) 2,921,565 138,090 Other long-term liabilities
Lease liabilities 211,363 - (138,364) 72,999 48,308
Compensated absences 165,994 27,348 - 193,342 69,068
Subtotal other long-term liabilities 377,357 27,348 (138,364) 266,341 117,376 Total Long-term liabilities 3,420,872 $ 27,348 $ (260,314) $ 3,187,906 $ 255,466 $ The General Fund typically liquidates compensated absences, claims and judgements of the Governmental Activities.
b. 2018 Streetlight Equipment Purchase Agreement - Direct Borrowing In September 2018, the City signed an equipment lease/purchase agreement with Banc of America Leasing & Capital LLC in the amount of $2,170,813. The purpose of the agreement was to provide financing to the City to assist in the acquisition, installation, retrofitting, repair, improvement, servicing and maintenance of streetlights and other capital improvements. The interest and principal are due semi-annually with payments due on December 1 and June 1 each year. Principal and interest payments will be made through December 1, 2033 with total annual amounts of $229,126, and $114,563 in the final year. The interest rate of the debt is currently 5.59%.

Repayment under the Agreement shall be absolute and unconditional, subject to annual appropriation, repayments will be made from the City's general fund plus any other legally available funds of the City.

5.A.1.a
Packet Pg. 461 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-44-
Note 5: Long-term liabilities (continued)
b. 2018 Streetlight Equipment Purchase Agreement - Direct Borrowing (continued) The annual debt service requirements on this debt are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2025 137,605 $ 91,521 $ 229,126 $
2026 145,405 83,722 229,127
2027 153,646 75,480 229,126
2028 162,355 66,771 229,126
2029 171,558 57,569 229,127
2030-2034 900,589 130,478 1,031,067
Total 1,671,158 $ 505,541 $ 2,176,699 $
Street Light Financing
c. Special assessment debt with government commitment
$1,415,000 Assessment District 87-1 Bonds, Series 1987 A, dated March 19, 1987, were issued to finance certain improvements pursuant to the Improvement Bond Act of 1915. The payment of the bonds is secured by assessment liens upon certain lands as described in said assessment and are not direct liabilities of the City. The City may, however, from time to time, when due and delinquent, advance available funds to pay the amount of any succeeding installment of the assessment on said land and the interest thereon on the 1915 bonds. Prior to the fiscal year ended June 30, 1995, the City of San Jacinto advanced funds for said delinquencies. During the fiscal year ended June 30, 1995 the City did not advance further amounts to the reserve fund and had commenced foreclosure proceedings. The City has since settled $670,000 of the principal, due to a completed Bond Tender agreement in exchange for a portion of the parcels.

In accordance with GASB Statement No. 6 “Special Assessments,” the special assessment debt has been reflected in the accompanying financial statements at June 30, 2024 as “Special Assessment Debt with Government Commitment” in the amount of $1,084,259. This includes an amount of matured unpaid principal of $455,000. Matured unpaid interest on these bonds is also reported for interest payments due but not paid as of June 30, 2024, in the amount of $629,259.

These balances have been outstanding for several years and as such, the City has recorded the corresponding taxes receivable of $1,084,259 in addition to unavailable revenue in the same amount on the Governmental Funds Balance Sheet.

5.A.1.a
Packet Pg. 462 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-45-
Note 5: Long-term liabilities (continued)
d. Installment Sales - Business-type activities
2015 Installment Sale - Direct Borrowing
In July 2015, the City signed an installment sale agreement with Municipal Finance Corporation in the amount of $3,902,310, maturing in 20 years at an annual interest rate of 3.5%. The proceeds are to be used for the acquisition and construction of certain energy efficiency improvements to the water supply facilities of the City’s Water Enterprise. Net revenues of the City’s Water Enterprise have been pledged to the payment of the installment payments.

The annual debt service requirements to maturity for the installment sale are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2025 138,090 $ 101,109 $ 239,199 $
2026 155,456 96,128 251,584
2027 174,131 90,529 264,660
2028 194,199 84,263 278,462
2029 215,748 77,283 293,031
2030-2034 1,460,837 252,797 1,713,634
2035-2036 583,104 20,706 603,810
Total 2,921,565 $ 722,815 $ 3,644,380 $
2015 Installment Sale
The City may prepay the principal components of the installment payments in whole or in part, on any date on or after September 1, 2026 by paying the installment payment required to be paid on such date plus a prepayment price equal to the principal amount of the installment payments to be prepaid, together with 1% prepayment premium thereon. The City shall give the Corporation written notice of its intention to exercise its option not less than thirty days in advance of the date to exercise.

In the event of default, installment owner may declare all principal components of the unpaid installment payments, together with accrued interest thereon at the rate of interest per annum represented by the installment sale from the immediately preceding installment payment date on which payment was made, to be immediately due and payable, whereupon the same shall immediately become due and payable.

5.A.1.a
Packet Pg. 463 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-46-
Note 5: Long-term liabilities (continued)
f. Lease Liabilities
Governmental activities
The City has entered into various lease agreements (as the lessee) for various vehicles. The lease terms are approximately 60 months. Monthly fixed payments range from $424 to $1,325 with interest rates ranging from 1.58% to 12.05%.

Future payment on the total lease liabilities are as follows.

Fiscal year Total
ending June 30, Principal Interest Payment
2025 175,108 $ 7,561 $ 182,669 $
2026 141,243 4,934 146,177
2027 82,739 2,578 85,317
2028 50,866 595 51,461
Total 449,956 $ 15,668 $ 465,624 $
Lease liabilities
See note 4 for the net book value of the right-to-use assets acquired through leases.

Business-type activities – Water Fund
The City has entered into various lease agreements (as the lessee) for various vehicles. The lease terms are approximately 60 months. Monthly fixed payments range from $553 to $1,981 or annual payments of $92,656 with interest rates ranging from 3.85% to 12.39%.

Business-type activities – Wastewater Fund
The City has entered into a lease agreement (as the lessee) for a vehicle. The lease term is approximately 60 months. Monthly fixed payments of $754 with interest rates of 8.06%.

Future payments on the business-type lease liabilities are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2025 48,308 $ 329 $ 48,637 $
2026 22,268 85 22,353
2027 2,423 3 2,426
Total 72,999 $ 417 $ 73,416 $
Lease liabilities
See note 4 for the net book value of the right-to-use assets acquired through leases.

5.A.1.a
Packet Pg. 464 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-47-
Note 5: Long-term liabilities (continued)
g. Debt issued without government commitment
Refinancing of $17,841,416 Community Facilities District No. 2001-2 Special Tax Bonds In March 2016, $17,975,000 City of San Jacinto Community Facilities District No. 2001-1 (Rancho San Jacinto, Phase 2) 2016 Special Tax Refunding bonds were issued by the San Jacinto Financing Authority for the purpose of refunding the $17,841,416 San Jacinto Financing Authority 2002 Local Agency Revenue Bonds, Series A. The balance at June 30, 2024 is $13,920,000.

All bonds represent special limited obligations of the City, payable solely from special taxes levied CFD No. 2002-1, as applicable, and are not an obligation of the General Fund of the City of San Jacinto. The City has covenanted to annually levy the special tax and, in the event of any delinquency in payment to the City of the special tax, the City may order action to foreclose on any property liens.
h. Subscriptions payable
Governmental activities
On July 1, 2022, the City has entered into various subscription agreements ranging from 24 - 36 months. An initial subscription liability was recorded in the amount of $386,403. Annual payments range from $10,300 to $97,883 with interest rates ranging from 2.19% to 3.38%.

Annual debt service requirements for this liability are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2025 121,907 $ 3,730 $ 125,637 $
2026 22,347 586 22,933
Total 144,254 $ 4,316 $ 148,570 $
Subscription liabilities

5.A.1.a
Packet Pg. 465 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-48-
Note 6: Short-term/long-term interfund borrowings
Interfund transactions - Due to/due from other funds
Individual fund interfund receivable and payable balances at June 30, 2024 were as follows:

Receivable Fund
General
Payable Fund Fund
Non-Major Governmental Funds 939,984 $
Power Fund 1,617,391
Total 2,557,375 $
The interfund payables represent temporary loans to cover negative cash balances.

Interfund transactions - Advances
Individual fund interfund advances to and from balances at June 30, 2024 were as follows:

Payable Fund General Fund
Non-Major
Governmental
Funds Totals
City Capital Projects Fund 4,156,625 $ 4,774,413 $ 8,931,038 $ Community Facilities District 2003 3,444,897 - 3,444,897 Total 7,601,522 $ 4,774,413 $ 12,375,935 $
Receivable Fund
Advances between the City Capital Projects Fund and other City funds are for cash advanced to the City Capital Projects Fund for expected project costs. Also, see Note 1.

The General Fund has advanced cash to the Community Facilities District 2003 Fund to cover costs.

5.A.1.a
Packet Pg. 466 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-49-
Note 7: Transfers in and out
Individual fund transfers in and transfers out activity as of June 30, 2024 were as follows:

Community Non-Major
General Facilities City Capital Governmental
Transfers-Out Fund District 2003 Projects Funds Totals
General Fund - $ - $ 2,304,535 $ 29,660 $ 2,334,195 $
Non-Major Governmental Funds 524,750 232,385 1,284,307 - 2,041,442 Water Fund - - 24,164 - 24,164
Internal Service Funds 50,000 - - - 50,000
Total 574,750 $ 232,385 $ 3,613,006 $ 29,660 $ 4,449,801 $ Transfers-In
 Transfers to the General Fund from non-major governmental funds represent reimbursement for costs of public safety and grant reimbursement costs.  Transfers to the City Capital Projects Fund from all other City funds are to fund various capital projects of the City. Also, see Note 1.
 Transfers to CFD 2003 were parking fines transferred by CSA 152.  Transfers between non-major governmental funds are to pay for operational costs, as directed by City Council.
 Transfers from Internal Service Funds to the General Fund are to fund equipment replacement reserves.

The remainder of this page is intentionally blank.

5.A.1.a
Packet Pg. 467 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-50-
Note 8: Defined benefit pension plan
A. General information about the pension plan
Plan description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools The City sponsors four rate plans (three miscellaneous and one safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.

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-ofliving adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

The Plan’s provisions and benefits in effect at June 30, 2024 are summarized as follows:

Miscellaneous Plan
On or after
Hire date
Prior to
January 1, 2011
January 1, 2011
and prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 55 2.0% @ 62
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 50-58 & up 50-67 & up 52-67 & up
Monthly benefits, as a % of eligible compensation 2.0%-2.7% 1.426%-2.418% 1.0%-2.5% Required employee contribution rates 8.000% 7.000% 6.750% Required employer contribution rates 15.950% 12.470% 7.680% Miscellaneous

5.A.1.a
Packet Pg. 468 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-51-
Note 8: Defined benefit pension plan (continued)
A. General information about the pension plan (continued) Safety Plan
Hire date
Police Fire Police Fire
Benefit formula 2.0% @ 50 2.0% @ 55 2.7% @ 55 2.7% @ 55 Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50 50 50-57 50-57
Monthly benefits, as a % of eligible compensation 2%-2.7% 1.426%-2% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates $44,325 Monthly $44,325 Monthly $39,945 Monthly $39,945 Monthly On or after
January 1, 2013
Safety-Inactive
Prior to
January 1, 2013
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 $1,625,506. The actual employer payments of $1,699,965 made to CalPERS by the City during the measurement period ended June 30, 2023 differed from the City’s proportionate share of the employer’s contributions of $1,619,188 by $80,776, 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.

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.

5.A.1.a
Packet Pg. 469 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-52-
Note 8: Defined benefit pension plan (continued)
B. Net pension liability (continued)
Actuarial methods and assumptions used to determine total pension liability (continued) Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Actuarial Cost Method
Asset Valuation Method Fair Value of Assets
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS' membership data for all funds Post Retirement Benefit Increase
(1) 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.

The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.

Long-term expected rate of return
The long-term expected rate of return on pension plan investments was determined using a buildingblock 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.

The expected real rates of return by asset class are as follows:

Asset Class
Assumed
Asset
Allocation Real Return 1,2
Real Return
Years 11+3
Global equity - cap-weighted 30.0% 4.54% 5.98%
Global equity - non-cap-weighted 12.0% 3.84% 2.62%
Private equity 13.0% 7.28% 1.81%
Treasury 5.0% 27.00% 7.23%
Mortgage-backed securities 5.0% 50.00% 4.93%
Investment grade corporates 10.0% 1.56%
High yield 5.0% 2.27%
Emerging market debt 5.0% 2.48%
Private debt 5.0% 3.57%
Real assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
1 An expected inflation of 2.30% used for this period
2 Figures are based on the 2021 Asset Liability Management study.

5.A.1.a
Packet Pg. 470 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-53-
Note 8: Defined benefit pension plan (continued)
B. Net pension liability (continued)
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.

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.

5.A.1.a
Packet Pg. 471 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-54-
Note 8: Defined benefit pension plan (continued)
C. Proportionate share of net pension liability
The following table shows the City’s proportionate share of the net pension liability over the measurement period.

Plan Total Pension
Liability (a)
Plan Fiduciary Net
Position (b)
Plan Net Pension Liability
(c ) = (a) - (b)
Balance at: 6/30/2022 (VD) 51,901,224 $ 37,526,813 $ 14,374,411 $ Balance at: 6/30/2023 (MD) 54,644,157 39,484,713 15,159,444 Net changes during 2022-23 2,742,933 $ 1,957,900 $ 785,033 $ Valuation Date (VD), Measurement Date (MD)
Increase (Decrease)
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov.

The City’s proportionate share of the net pension liability for the total Plan as of the June 30, 2022 and 2023 measurement dates was as follows:

Miscellaneous Safety Total
Proportion - June 30, 2022 0.18181% 0.08538% 0.26719%
Proportion - June 30, 2023 0.18178% 0.08120% 0.26298%
Change - Increase (Decrease) (0.00003%) (0.00418%) (0.00421%) 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
Plan's Net Pension Liability 13, $ 9,089,619 910,678 $ 5,121,474 $ Safety
Plan's Net Pension Liability 8, 6,069,825 675,943 3,939,136 Total 22,586,621 $ 15,159,444 $ 9,060,610 $
Discount Rate - 1%
(5.90%)
Current Discount Rate
(6.90%)
Discount Rate + 1%
(7.90%)

5.A.1.a
Packet Pg. 472 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-55-
Note 8: Defined benefit pension plan (continued)
C. Proportionate share of net pension liability (continued) 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).

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.

5.A.1.a
Packet Pg. 473 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-56-
Note 8: Defined benefit pension plan (continued)
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 $14,374,411. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension credit of $2,320,338.

As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 909,984 $ 110,183 $ Changes of assumptions 903,024 -
Differences between projected and actual investment
earnings 2,302,345 -
Differences between employer's contributions and
proportionate share of contributions 82,378 247,930
Change in employer's proportion 66,479 460,166
Pension contributions subsequent to measurement date 1,625,506 - $ 818,279 5,889,716 $
The amounts above are net of outflows and inflows recognized in the 2022-23 measurement period expense. Contributions subsequent to the measurement date of $1,625,506 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal Year
Ending June 30: Miscellaneous Safety Total
2025 591,451 $ 353,607 $ 945,058 $
2026 403,945 265,997 669,942
2027 1,131,363 634,156 1,765,519
2028 42,229 23,183 65,412
2029 - - -
Thereafter - - -
E. Payable to the pension plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year then ended.

5.A.1.a
Packet Pg. 474 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-57-
IV. OTHER DISCLOSURES
Note 9: Risk management
The City adopted a self-insured workers’ compensation program which is administered by a service agent. The City is self-insured for the first $250,000 on each claim. Insurance coverage in excess of the self-insured amount is provided by Public Entity Risk Management Authority (PERMA) up to statutory limits for workers’ compensation.

Effective July 1, 2002, the City elected to reduce self-insured liability claim coverage from $125,000 to $50,000 on each general liability claim against the City. The insurance coverage in excess of the selfinsured amount is provided by PERMA up to a limit of $50,000,000.

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. At June 30, 2024, the amount of these liabilities was $428,495.

This amount represents an estimate of $428,495 for reported claims through June 30, 2024. These claims are recorded as claims payable in the Workers’ Compensation Fund and Liability Insurance Fund. This liability is the City’s best estimate based on available information. Changes in the reported liability are as follows:

Change in
Liability at Claim Liability at
Year Beginning of Year Payable End of Year
2021-2022 203,597 $ 121,136 $ 324,733 $
2022-2023 324,733 103,762 428,495
2023-2024 428,495 41,637 470,132
Effective July 1, 1986 the City became a member of PERMA, a public entity risk pool, currently operating as a common risk management and insurance program for 20 California cities and 10 Special District/Agencies. The City pays an annual premium to the pool for its excess general liability insurance coverage. The agreement for formation of PERMA provides that the pool will be self-sustaining through member premiums. The City continues to carry commercial companies for all other risks of loss, including property insurance, earthquake and flood, auto physical damage insurance and TULIP/special events insurance.

PERMA has published its own financial report for the year ended June 30, 2024, which can be obtained from their website, www.permarisk.gov.

5.A.1.a
Packet Pg. 475 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-58-
Note 10: Commitments and contingencies
a. Construction commitments
The City has entered into various commitments for construction and/or capital projects. As of June 30, 2024, the City had outstanding contracts commitments of $9,935,580. b. Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial.
c. Other
The City is involved as a defendant in various legal proceedings. While it is not feasible to predict or determine the outcome in these cases, it is the opinion of the City that the outcome of the majority of these cases will have no material adverse effect on the financial position of the City.

Note 11: Fund balance reservations/designations
The City’s Government Fund balances are detailed below:

General LLPD#2
Community
Facilities
District 2003
City Capital
Projects
Non-Major
Governmental
Funds
Total
Governmental
Funds
Nonspendable:

Prepaids/Inventory 233,649 $ - $ - $ - $ - $ 233,649 $
Advances receivable 7,601,522 - - - 5,673 7,607,195
Land held for resale - - - - 339,807 339,807
Total nonspendable 7,835,171 - - - 345,480 8,180,651
Restricted:

Other government restrictions 74,348 11,357,785 - - 25,385,559 36,817,692 Total restricted 74,348 11,357,785 - - 25,385,559 36,817,692 Assigned: - - - - 1,499,352 1,499,352
Unassigned: 21,648,749 - (4,778,452) - (975,427) 15,894,870 Total fund balances 29,558,268 $ 11,357,785 $ (4,778,452) $ - $ 26,254,964 $ 62,392,565 $ The City has established a minimum fund balance policy for the General Fund Contingency Reserve.

The City Council stipulates that the Contingency Reserve must be a minimum of 15 percent of the upcoming fiscal year's General Fund annual budgeted operating expenditures. At fiscal year-end the Reserve for Contingency balance was $4,317,629, 15 percent of fiscal year June 30, 2024 budgeted General Fund operating expenditures. This reserve has been reported as unassigned in the General Fund.

5.A.1.a
Packet Pg. 476 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-59-
Note 12: Dissolution of California Redevelopment Agencies On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (Bill) that provides for the dissolution of all redevelopment agencies in the State of California. Most cities in California had established a redevelopment agency that was included in the reporting entity of the City as a blended component unit (since the City council, in many cases, also served as the governing board for those agencies).

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

In accordance with the provisions of ABX 1 26 (Bill) and the California Supreme Court’s decision to uphold the Bill, the obligations of the former redevelopment agency became vested with the funds established for the successor agency upon the date of dissolution, February 1, 2012. Former tax increment revenues pledged to fund the debts of the former redevelopment agency will be distributed to the Successor Agency subject to the reapportionment of such revenues as provided by the Bill.

The debt of the Successor Agency as of June 30, 2024 is as follows:

Balance at Balance at Due within
June 30, 2023 Additions Deletions June 30, 2024 one year Successor agency
Bonds payable:
2005 Tax Allocation Bonds 5,285,000 $ - $ (340,000) $ 4,945,000 $ 355,000 $ Total long-term liabilities 5,285,000 $ - $ (340,000) $ 4,945,000 $ 355,000 $ Future debt service requirements for the bonds payable are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2025 355,000 $ 219,128 $ 574,128 $
2026 370,000 202,630 572,630
2027 390,000 185,150 575,150
2028 405,000 166,865 571,865
2029 425,000 147,775 572,775
2030-2034 2,440,000 419,600 2,859,600
2035 560,000 12,730 572,730
Totals 4,945,000 $ 1,353,878 $ 6,298,878 $
2005 Tax Allocation Bonds

5.A.1.a
Packet Pg. 477 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
-60-
Note 13: Risks and uncertainties
Successor Agency
Deductions (expenses) incurred by the Successor Agency for the year ended June 30, 2024 (and subsequent years in which the Successor Agency is in operation) are subject to review by various State agencies and the County in which the Successor Agency resides. If any expenses incurred by the Successor Agency are disallowed by the State agencies or County, the City, acting as the Successor Agency could be liable for the repayment of the disallowed costs from either its own funds or by the State withholding remittances normally paid to the City. The amount, if any, of expenses that may be disallowed by the State agencies or County cannot be determined at this time, although the Successor Agency expects such amounts, if any, to be immaterial.

Note 14: Restatement of Net Position
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 and net position. The Community Facilities District 2003 Fund was previously reported as non-major funds, and qualified as major for the year ending June 30, 2024, while the TUMF Capital Projects Fund no longer met the criteria to be reported as a major fund for the fiscal year ending June 30, 2024. This qualifies as a change to or within the financial reporting entity, under the guidance of GASB 100. There was a change in the measurement of lease liabilities in the current year, primarily related to the IBR rates used to be more in line with rates used at the time of the lease inception. This qualifies as a correction of an error under the guidance of GASB 100.

Community
Facilities
District 2003
TUMF Capital
Projects
Non-Major
Governmental
Funds
Fund balance, beginning of year, as previously reported - $ (428,699) $ 20,371,359 $ Change from major to non-major (3,989,470) 428,699 3,560,771 Fund balance, beginning of year, as restated (3,989,470) $ - $ 23,932,130 $ Governmental
Activities
Net position, beginning of year, as previously reported 149,774,365 $ Remeasurement of lease liability 96,420
Net position, beginning of year, as restated 149,870,785 $

5.A.1.a
Packet Pg. 478 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Required Supplementary Information

5.A.1.a
Packet Pg. 479 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) This page left intentionally blank.

5.A.1.a
Packet Pg. 480 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2024
-61-
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes 18,156,273 $ 18,156,273 $ 19,396,314 $ 1,240,041 $ Licenses and permits 1,976,400 1,976,400 1,430,039 (546,361) Fines and forfeitures 260,000 260,000 362,302 102,302
Development fees 275,000 275,000 102,000 (173,000)
Intergovernmental 8,575,081 9,177,501 6,471,679 (2,705,822) Charges for services 3,636,500 3,636,500 5,082,013 1,445,513 Investment earnings 275,000 275,000 2,557,674 2,282,674 Other/Overhead Allocations 5,722,689 5,722,689 5,821,898 99,209 Total revenues 38,876,943 39,479,363 41,223,919 1,744,556

EXPENDITURES
Current:

General government 4,323,385 4,398,385 3,753,598 644,787 Public safety 20,336,643 20,336,643 18,939,127 1,397,516 Public works 2,925,735 2,922,518 3,294,697 (372,179)
Community development 7,863,542 8,475,739 6,649,642 1,826,097 Culture and leisure 140,339 140,339 230,121 (89,782)
Capital outlay 523,804 803,167 930,479 (127,312)
Debt service:

Principal 236,659 236,658 236,658 -
Interest 101,985 101,985 101,985 -
Total expenditures 36,452,092 37,415,434 34,136,307 3,279,127 Excess (deficiency) of revenues
over (under) expenditures 2,424,851 2,063,929 7,087,612 5,023,683

OTHER FINANCING SOURCES (USES)
Proceeds from the sale of property 10,000 10,000 51,881 41,881 Subscription acquisition - 201,661 201,661 -
Transfers in 811,892 811,892 574,750 (237,142)
Transfers out (6,230,096) (6,497,399) (2,334,195) 4,163,204 Total other financing sources (uses) (5,408,204) (5,473,846) (1,505,903) 3,967,943 Net change in fund balance (2,983,353) (3,409,917) 5,581,709 8,991,626 Fund balance, beginning of year 23,976,559 23,976,559 23,976,559 - Fund balance, end of year 20,993,206 $ 20,566,642 $ 29,558,268 $ 8,991,626 $ Budgeted Amounts

5.A.1.a
Packet Pg. 481 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Required Supplementary Information
Budgetary Comparison Schedule – LLPD#2
For the Year Ended June 30, 2024
-62-
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 5,041,400 $ 5,041,400 $ 5,390,227 $ 348,827 $ Investment earnings 85,000 85,000 259,651 174,651
Other/overhead allocations - - 49,380 49,380
Total revenues 5,126,400 5,126,400 5,699,258 572,858

EXPENDITURES
Community development 4,960,047 5,077,069 4,278,453 798,616 Total expenditures 4,960,047 5,077,069 4,278,453 798,616 Excess (deficiency) of revenues
over (under) expenditures 166,353 49,331 1,420,805 1,371,474

OTHER FINANCING SOURCES (USES)
Transfers in - 155,000 - 155,000
Transfers out (154,980) - - -
Total other financing sources (uses) (154,980) 155,000 - 155,000 Net change in fund balance 11,373 204,331 1,420,805 1,526,474 Fund balance (deficit), beginning of year 9,936,980 9,936,980 9,936,980 - Fund balance, end of year 9,948,353 $ 10,141,311 $ 11,357,785 $ 1,216,474 $ Budgeted Amounts

5.A.1.a
Packet Pg. 482 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Required Supplementary Information
Budgetary Comparison Schedule – Community Facilities District 2003 For the Year Ended June 30, 2024
-63-
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 3,395,000 $ 3,395,000 $ 3,682,515 $ 287,515 $ Total revenues 3,395,000 3,395,000 3,682,515 287,515

EXPENDITURES
Current:

General government 30,500 30,500 16,278 14,222
Public safety 4,162,549 4,162,549 4,230,822 (68,273)
Capital outlay 84,000 84,000 324,292 (240,292)
Debt service:

Interest 20,000 20,000 132,490 (112,490)
Total expenditures 4,297,049 4,297,049 4,703,882 (406,833) Excess (deficiency) of revenues
over (under) expenditures (902,049) (902,049) (1,021,367) (119,318)

OTHER FINANCING SOURCES (USES)
Transfers in 169,558 169,558 232,385 62,827
Total other financing sources (uses) 169,558 169,558 232,385 62,827 Net change in fund balance (732,491) (732,491) (788,982) (56,491) Fund balance, beginning of year (3,989,470) (3,989,470) (3,989,470) - Fund balance, end of year (4,721,961) $ (4,721,961) $ (4,778,452) $ (56,491) $ Budgeted Amounts

5.A.1.a
Packet Pg. 483 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Required Supplementary Information
Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and Related Ratios as of the Measurement Date - Last 10 Years For the Year Ended June 30, 2024
-64-
Measurement
Date
Employer's
Proportion of
the Collective
Net Pension
Liability1
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
Employer's
Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a percentage
of the Employer's
Covered Payroll
Pension Plan's
Fiduciary Net
Position as a
percentage of
the Total
Pension Liability
Miscellaneous Plan
6/30/2014 0.18099% 4,473,080 $ 3,036,159 $ 147% 76.82%
6/30/2015 0.19300% 5,294,972 2,908,424 182% 73.75%
6/30/2016 0.18182% 6,316,067 2,317,063 273% 70.82%
6/30/2017 0.17913% 7,061,261 2,804,241 252% 69.75%
6/30/2018 0.18044% 6,800,330 3,119,387 218% 72.25%
6/30/2019 0.17949% 7,187,759 3,810,207 189% 73.22%
6/30/2020 0.17953% 7,572,634 4,262,727 178% 73.34%
6/30/2021 0.22695% 4,309,406 4,603,445 94% 85.73%
6/30/2022 0.18181% 8,507,294 5,068,470 168% 74.30%
6/30/2023 0.18178% 9,089,619 5,995,012 152% 74.50%
Safety Plan (Inactive)
6/30/2014 0.07000% 2,516,462 $ - $ - 0.00%
6/30/2015 0.07447% 3,068,587 - - 80.89%
6/30/2016 0.07781% 4,030,026 - - 75.83%
6/30/2017 0.07720% 4,613,123 - - 74.46%
6/30/2018 0.07932% 4,654,165 - - 74.14%
6/30/2019 0.07983% 4,983,113 - - 71.97%
6/30/2020 0.08052% 5,364,670 - - 70.10%
6/30/2021 0.09711% 3,408,091 - - 81.32%
6/30/2022 0.08538% 5,867,117 - - 68.79%
6/30/2023 0.08120% 6,069,825 - - 68.05%
1 Proportion of the collective 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.

5.A.1.a
Packet Pg. 484 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Required Supplementary Information
Schedule of Plan Contributions - Last 10 Years
For the Year Ended June 30, 2024
-65-
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
Miscellaneous Plan
6/30/2015 640,721 $ (640,721) $ - $ 2,908,424 $ 22.03%
6/30/2016 613,674 (613,674) - 2,317,063 26.48%
6/30/2017 691,841 (691,841) - 2,804,241 24.67%
6/30/2018 738,923 (738,923) - 3,119,387 23.69%
6/30/2019 876,180 (876,180) - 3,810,207 23.00%
6/30/2020 1,012,917 (1,012,917) - 4,262,727 23.76%
6/30/2021 1,135,010 (1,135,010) - 4,603,445 24.66%
6/30/2022 1,260,063 (1,260,063) - 5,068,470 24.86%
6/30/2023 1,185,765 (1,185,765) - 5,995,012 19.78%
6/30/2024 1,271,431 (1,271,431) - 6,780,344 18.75%
Safety Plan (Inactive)
6/30/2015 138,527 $ (138,527) $ - $ - $ 0.00%
6/30/2016 146,311 (146,311) - - 0.00%
6/30/2017 175,023 (175,023) - - 0.00%
6/30/2018 219,078 (219,078) - - 0.00%
6/30/2019 283,052 (283,052) - - 0.00%
6/30/2020 416,795 (416,795) - - 0.00%
6/30/2021 462,234 (462,234) - - 0.00%
6/30/2022 476,521 (476,521) - - 0.00%
6/30/2023 514,200 (514,200) - - 0.00%
6/30/2024 354,075 (354,075) - - 0.00%
Notes to Schedule:

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.

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.

5.A.1.a
Packet Pg. 485 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) This page left intentionally blank

5.A.1.a
Packet Pg. 486 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Non-Major Governmental Funds

5.A.1.a
Packet Pg. 487 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Combining Balance Sheet – Non-Major Governmental Funds
June 30, 2024
-66-
Gas Tax Measure A Traffic Safety
CFD #2003-2
Sewer Lift
Operations
ASSETS
Cash and investments - $ 2,482,691 $ 5,785 $ 338 $
Receivables, net:

Accounts - - - -
Interest - - - -
Taxes and assessments - - - -
Notes - - - -
Prepaids - - 3,248 -
Due from other governments 164,184 267,187 18,545 -
Due from other funds - - - -
Advances receivable - 946,128 - -
Land held for resale - - - -
Total assets 164,184 $ 3,696,006 $ 27,578 $ 338 $

LIABILITIES
Accounts payable - $ - $ 92,073 $ 338 $
Accrued payroll - - - -
Due to other governments - - - -
Due to other funds - - - -
Unearned revenue - - - -
Advances payable - - - -
Total liabilities - - 92,073 338

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -

FUND BALANCES
Nonspendable - - 3,248 -
Restricted 164,184 3,696,006 - -
Assigned - - - -
Unassigned - - (67,743) -
Total fund balances (deficit) 164,184 3,696,006 (64,495) - Total liabilities, deferred inflows
of resources and fund balances 164,184 $ 3,696,006 $ 27,578 $ 338 $ Special Revenue Funds

5.A.1.a
Packet Pg. 488 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Continued
-67-
LLPD #1
Park
Development
Parkway
Development CSA 152
State Asset
Seizure
Public Safety
Sales Tax
$ 34,911 60,137 $ 18,772 $ 250 $ 118,775 $ - $
- - - 274,668 - -
- - - - - -
- 13,162 - - - -
- - - - - -
- - - - - -
- 14,154 - - - 86,173
- - - - - -
- - - - - -
- - - - - -
$ 34,911 87,453 $ 18,772 $ 274,918 $ 118,775 $ 86,173 $ $ - 87,453 $ - $ 8,229 $ - $ - $
- - - - - -
- - - - - -
- - - 230,060 - -
- - - - - -
- - - - - -
- 87,453 - 238,289 - -
- - - 208,893 - -
- - - - - -
34,911 - 18,772 - 118,775 86,173
- - - - - -
- - - (172,264) - -
34,911 - 18,772 (172,264) 118,775 86,173
$ 34,911 87,453 $ 18,772 $ 274,918 $ 118,775 $ 86,173 $ Special Revenue Funds

5.A.1.a
Packet Pg. 489 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Combining Balance Sheet – Non-Major Governmental Funds
June 30, 2024
-68-
Air Quality
Improvement
AB3229
COPS
Program
Fire
Mitigation AB1600
ASSETS
Cash and investments 56,321 $ - $ - $ 510,390 $
Receivables, net:

Accounts - - - -
Interest - - - -
Taxes and assessments - - - -
Notes - - - -
Prepaids - 2,400 - -
Due from other governments - - - -
Due from other funds - - - -
Advances receivable - - - -
Land held for resale - - - -
Total assets 56,321 $ 2,400 $ - $ 510,390 $

LIABILITIES
Accounts payable - $ 42,730 $ - $ - $
Accrued payroll - - - -
Due to other governments - - - -
Due to other funds - 112,012 - -
Unearned revenue - - - -
Advances payable - - - -
Total liabilities - 154,742 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -

FUND BALANCES
Nonspendable - 2,400 - -
Restricted 56,321 - - 510,390
Assigned - - - -
Unassigned - (154,742) - -
Total fund balances (deficit) 56,321 (152,342) - 510,390 Total liabilities, deferred inflows
of resources and fund balances 56,321 $ 2,400 $ - $ 510,390 $ Special Revenue Funds

5.A.1.a
Packet Pg. 490 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Continued
-69-
Special District
Administration
Federal Asset
Seizure
Vandalism &
Graffiti Reward RMRA CDBG CFD 2018-1
$ 36,898 55,291 $ - $ 1,821,585 $ - $ 7,585 $
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- 25 - - - -
- - - 243,325 30,071 -
- - - - - -
- - - 1,161,087 - -
- - - - - -
$ 36,898 55,316 $ - $ 3,225,997 $ 30,071 $ 7,585 $
$ - 1,513 $ - $ - $ - $ - $
- 5,448 - - - -
- - - - - -
- - - - 30,071 -
- - - - - -
- - - - - -
- 6,961 - - 30,071 -
- - - - 30,071 -
- 25 - - - -
36,898 48,330 - 3,225,997 - 7,585
- - - - - -
- - - - (30,071) -
36,898 48,355 - 3,225,997 (30,071) 7,585
$ 36,898 55,316 $ - $ 3,225,997 $ 30,071 $ 7,585 $
Special Revenue Funds

5.A.1.a
Packet Pg. 491 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Combining Balance Sheet – Non-Major Governmental Funds
June 30, 2024
-70-
CFD 2017-1 CFD 2020-1
CFD #2021-1
Public Safety
Development
Impact Fees
ASSETS
Cash and investments 185,800 $ 61,825 $ - $ 5,888,895 $ Receivables, net:

Accounts - - - -
Interest - - - -
Taxes and assessments 3,725 - - -
Notes - - - -
Prepaids - - - -
Due from other governments - - - -
Due from other funds - - - -
Advances receivable - - - 1,019,339
Land held for resale - - - -
Total assets 189,525 $ 61,825 $ - $ 6,908,234 $

LIABILITIES
Accounts payable 33,536 $ 14 $ - $ - $
Accrued payroll - - - -
Due to other governments - - - -
Due to other funds - - - -
Unearned revenue - - - -
Advances payable - - - -
Total liabilities 33,536 14 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -

FUND BALANCES
Nonspendable - - - -
Restricted 155,989 61,811 - 6,908,234
Assigned - - - -
Unassigned - - - -
Total fund balances (deficit) 155,989 61,811 - 6,908,234 Total liabilities, deferred inflows
of resources and fund balances 189,525 $ 61,825 $ - $ 6,908,234 $ Special Revenue Funds

5.A.1.a
Packet Pg. 492 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Continued
-71-
Successor
Housing
Authority
Assessment
District 2003-
01 Total Special
Revenue
Funds
Underground
Utility
Flood
Control
Traffic
Signalization
$ 10,529,314 236,555 $ 22,112,118 $ 1,339,044 $ - $ 160,308 $ - - 274,668 - - -
- 293,970 293,970 - - -
9,110 - 25,997 - - -
- 2,965,155 2,965,155 - - -
- - 5,673 - - -
- - 823,639 - - -
- - - - - -
- - 3,126,554 - 1,647,859 -
- 339,807 339,807 - - -
$ 10,538,424 3,835,487 $ 29,967,581 $ 1,339,044 $ 1,647,859 $ 160,308 $ $ 2,157,647 - $ 2,423,533 $ - $ - $ - $
- - 5,448 - - -
- - - - - -
- - 372,143 - - -
- - - - - -
- - - - - -
2,157,647 - 2,801,124 - - -
- 3,269,133 3,508,097 - - -
- 339,807 345,480 - - -
8,380,777 226,547 23,737,700 - 1,647,859 -
- - - 1,339,044 - 160,308
- - (424,820) - - -
8,380,777 566,354 23,658,360 1,339,044 1,647,859 160,308 $ 10,538,424 3,835,487 $ 29,967,581 $ 1,339,044 $ 1,647,859 $ 160,308 $ Special Revenue Funds Capital Projects Funds

5.A.1.a
Packet Pg. 493 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) This page left intentionally blank

5.A.1.a
Packet Pg. 494 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Combining Balance Sheet – Non-Major Governmental Funds
June 30, 2024
-72-
Debt Service
Highway 79
Capital
Projects
TUMF
Capital
Projects
(formerly
major)
Total Capital
Projects
Funds
Assessment
District 87-1
Debt Service
Total NonMajor
Governmental
Funds
ASSETS
Cash and investments - $ - $ 1,499,352 $ 161,362 $ 23,772,832 $ Receivables, net:

Accounts - - - - 274,668
Interest - - - - 293,970
Taxes and assessments - - - 1,084,259 1,110,256
Notes - - - - 2,965,155
Prepaids - - - - 5,673
Due from other governments - 276,712 276,712 - 1,100,351 Due from other funds - - - - -
Advances receivable - - 1,647,859 - 4,774,413
Land held for resale - - - - 339,807
Total assets - $ 276,712 $ 3,423,923 $ 1,245,621 $ 34,637,125 $

LIABILITIES
Accounts payable - $ - $ - $ - $ 2,423,533 $
Accrued payroll - - - - 5,448
Due to other governments - - - 144,128 144,128
Due to other funds - 276,712 276,712 291,129 939,984
Unearned revenue - - - - -
Advances payable - - - - -
Total liabilities - 276,712 276,712 435,257 3,513,093

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 276,712 276,712 1,084,259 4,869,068

FUND BALANCES
Nonspendable - - - - 345,480
Restricted - - 1,647,859 - 25,385,559
Assigned - - 1,499,352 - 1,499,352
Unassigned - (276,712) (276,712) (273,895) (975,427)
Total fund balances (deficit) - (276,712) 2,870,499 (273,895) 26,254,964 Total liabilities, deferred inflows
of resources and fund balances - $ 276,712 $ 3,423,923 $ 1,245,621 $ 34,637,125 $ Capital Projects Funds

5.A.1.a
Packet Pg. 495 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Funds
For the Year Ended June 30, 2024
-73-
Gas Tax Measure A
Traffic
Safety
CFD #2003-2
Sewer Lift
Operations

REVENUES
Taxes - $ - $ - $ - $
Assessments - - - 21,126
Fines and forfeitures - - 95,534 -
Development fees - - - -
Intergovernmental 1,488,025 1,631,069 - -
Investment earnings 666 80,201 - 110
Other/overhead allocations - - - -
Total revenues 1,488,691 1,711,270 95,534 21,236

EXPENDITURES
Current:

General government - - - -
Public safety - - 173,613 -
Public works 1,478,593 75,192 25,606 21,236
Community development - - - -
Culture and leisure - - - -
Capital outlay - - 11,449 -
Debt service:

Interest - - - -
Total expenditures 1,478,593 75,192 210,668 21,236
Excess (deficiency) of revenues
over (under) expenditures 10,098 1,636,078 (115,134) -

OTHER FINANCING SOURCES (USES)
Transfers in - - 27,160 -
Transfers out - (471,736) (77,160) -
Total other financing sources (uses) - (471,736) (50,000) - Net change in fund balances 10,098 1,164,342 (165,134) - Fund balances (deficit), beginning of year, as previously reported 154,086 2,531,664 100,639 - Change in financial reporting entity - - - -
Fund balances (deficit), beginning of year, as restated 154,086 2,531,664 100,639 - Fund balances (deficit), end of year 164,184 $ 3,696,006 $ (64,495) $ - $ Special Revenue Funds

5.A.1.a
Packet Pg. 496 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Continued
-74-
LLPD #1
Park
Development
Parkway
Development CSA 152
State Asset
Seizure
Public Safety
Sales Tax
$ - - $ - $ - $ - $ 533,188 $
- 655,161 - - - -
- - - 523,931 - -
- - - - - -
- - - 202,129 - -
871 - 468 - 2,964 -
- - - - - -
871 655,161 468 726,060 2,964 533,188
- 2,859 - - - -
- - - - - -
- - - 512,843 - -
- - - - - -
- 372,354 - - - -
- 279,948 - - - -
- - - - - -
- 655,161 - 512,843 - -
871 - 468 213,217 2,964 533,188
- - - - - -
- - - (232,385) - (484,197)
- - - (232,385) - (484,197)
871 - 468 (19,168) 2,964 48,991
34,040 - 18,304 (153,096) 115,811 37,182
- - - - - -
34,040 - 18,304 (153,096) 115,811 37,182
$ 34,911 - $ 18,772 $ (172,264) $ 118,775 $ 86,173 $
Special Revenue Funds

5.A.1.a
Packet Pg. 497 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Funds
For the Year Ended June 30, 2024
-75-
Air Quality
Improvement
AB3229 COPS
Program
Fire
Mitigation AB1600

REVENUES
Taxes $ - - $ - $ - $
Assessments - - - -
Fines and forfeitures - - - -
Development fees - - - -
Intergovernmental 72,780 211,159 - -
Investment earnings 2,010 - - 12,737
Other/overhead allocations - - - -
Total revenues 74,790 211,159 - 12,737

EXPENDITURES
Current:

General government - - - -
Public safety - (1,833) - -
Public works 73,055 - - -
Community development 583 - - -
Culture and leisure - - - -
Capital outlay - 302,470 - -
Debt service:

Interest - - - -
Total expenditures 73,638 300,637 - -
Excess (deficiency) of revenues
over (under) expenditures 1,152 (89,478) - 12,737

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances 1,152 (89,478) - 12,737
Fund balances (deficit), beginning of year, as previously reported 55,169 (62,864) - 497,653 Change in financial reporting entity - - - -
Fund balances (deficit), beginning of year, as restated 55,169 (62,864) - 497,653 Fund balances (deficit), end of year 56,321 $ (152,342) $ - $ 510,390 $ Special Revenue Funds

5.A.1.a
Packet Pg. 498 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Continued
-76-
Special District
Administration
Federal Asset
Seizure
Vandalism &
Graffiti Reward RMRA CDBG CFD 2018-1
$ - - $ - $ - $ - $ - $
- - - - - 3,554
- - - - - -
- - - - - -
- - - 1,396,185 (1,776) -
923 - - 66,079 - 163
- 251,741 - - - -
923 251,741 - 1,462,264 (1,776) 3,717
- - - - - -
- - - - - -
- - - - - -
- 307,837 - - - 3,817
- - - - - -
- - - - - -
- - - - - -
- 307,837 - - - 3,817
923 (56,096) - 1,462,264 (1,776) (100)
- - - - - -
- - (40,553) (308,715) (28,295) -
- - (40,553) (308,715) (28,295) -
923 (56,096) (40,553) 1,153,549 (30,071) (100)
35,975 104,451 40,553 2,072,448 - 7,685
- - - - - -
35,975 104,451 40,553 2,072,448 - 7,685
$ 36,898 48,355 $ - $ 3,225,997 $ (30,071) $ 7,585 $
Special Revenue Funds

5.A.1.a
Packet Pg. 499 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Funds
For the Year Ended June 30, 2024
-77-
CFD 2017-1 CFD 2020-1
CFD #2021-1
Public Safety
Development
Impact Fees

REVENUES
Taxes - $ - $ - $ - $
Assessments 368,430 49,287 - -
Fines and forfeitures - - - -
Development fees - - - 655,624
Intergovernmental - - - -
Investment earnings 2,306 858 - 163,746
Other/overhead allocations - - - -
Total revenues 370,736 50,145 - 819,370

EXPENDITURES
Current:

General government - - - -
Public safety - - - -
Public works - - - 28,122
Community development 194,102 1,605 - -
Culture and leisure - - - 29,420
Capital outlay - - - -
Debt service:

Interest - - - -
Total expenditures 194,102 1,605 - 57,542
Excess (deficiency) of revenues
over (under) expenditures 176,634 48,540 - 761,828

OTHER FINANCING SOURCES (USES)
Transfers in - - 2,500 -
Transfers out - - - (117,465)
Total other financing sources (uses) - - 2,500 (117,465) Net change in fund balances 176,634 48,540 2,500 644,363 Fund balances (deficit), beginning of year, as previously reported (20,645) 13,271 (2,500) 6,263,871 Change in financial reporting entity - - - -
Fund balances (deficit), beginning of year, as restated (20,645) 13,271 (2,500) 6,263,871 Fund balances (deficit), end of year 155,989 $ 61,811 $ - $ 6,908,234 $ Special Revenue Funds

5.A.1.a
Packet Pg. 500 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Continued
-78-
Community
Facilities
District 2003
(formerly
non-major)
Successor
Housing
Authority
Assessment
District
2003-01
Total Special
Revenue Funds
Underground
Utility Flood Control
$ - - $ - $ 533,188 $ - $ - $
- - 1,252,899 2,350,457 - -
- - - 619,465 - -
- - - 655,624 - 193,414
- - - 4,999,571 - -
5,963 - 248,645 588,710 33,415 40,826
- - - 251,741 - -
5,963 - 1,501,544 9,998,756 33,415 234,240
5,618 - - 8,477 - -
- - - 171,780 - -
- - 134,554 2,349,201 - 51,203
- - - 507,944 - -
- - - 401,774 - -
- - 2,120,288 2,714,155 - -
- - - - - -
5,618 - 2,254,842 6,153,331 - 51,203
345 - (753,298) 3,845,425 33,415 183,037
- - - 29,660 - -
- - - (1,760,506) - (68,654)
- - - (1,730,846) - (68,654)
345 - (753,298) 2,114,579 33,415 114,383
566,009 (3,989,470) 9,134,075 17,554,311 1,305,629 1,533,476 - 3,989,470 - 3,989,470 - -
566,009 - 9,134,075 21,543,781 1,305,629 1,533,476
$ 566,354 - $ 8,380,777 $ 23,658,360 $ 1,339,044 $ 1,647,859 $ Special Revenue Funds Capital Projects Funds

5.A.1.a
Packet Pg. 501 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Funds
For the Year Ended June 30, 2024
-79-
Traffic
Signalization
Highway 79
Capital
Projects
TUMF Capital
Projects
(formerly
major)
Total Capital
Projects Funds

REVENUES
Taxes - $ - $ - $ - $
Assessments - - - -
Fines and forfeitures - - - -
Development fees - - - 193,414
Intergovernmental - - 266,870 266,870
Investment earnings 4,001 - - 78,242
Other/overhead allocations - - - -
Total revenues 4,001 - 266,870 538,526

EXPENDITURES
Current:

General government - - - -
Public safety - - - -
Public works - - - 51,203
Community development - - - -
Culture and leisure - - - -
Capital outlay - - - -
Debt service:

Interest - - - -
Total expenditures - - - 51,203
Excess (deficiency) of revenues
over (under) expenditures 4,001 - 266,870 487,323

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - (97,399) (114,883) (280,936)
Total other financing sources (uses) - (97,399) (114,883) (280,936) Net change in fund balances 4,001 (97,399) 151,987 206,387 Fund balances (deficit), beginning of year, 156,307 97,399 - 3,092,811 Change in financial reporting entity - - (428,699) (428,699) Fund balances (deficit), beginning of year, 156,307 97,399 (428,699) 2,664,112 Fund balances (deficit), end of year 160,308 $ - $ (276,712) $ 2,870,499 $ Capital Projects Funds

5.A.1.a
Packet Pg. 502 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) Concluded
-80-
Debt Service
Assessment
District 87-1
Debt
Service
Total Non-Major
Governmental
Funds
$ 533,188 - $
2,350,457 -
619,465 -
849,038 -
5,266,441 -
670,970 4,018
251,741 -
10,541,300 4,018
10,627 2,150
171,780 -
2,400,404 -
507,944 -
401,774 -
2,714,155 -
- -
6,206,684 2,150
4,334,616 1,868
29,660 -
(2,041,442) -
(2,011,782) -
2,322,834 1,868
20,371,359 (275,763)
3,560,771 -
23,932,130 (275,763)
$ 26,254,964 (273,895) $

5.A.1.a
Packet Pg. 503 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) This page left intentionally blank

5.A.1.a
Packet Pg. 504 Attachment: 2024 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) 735 E. Carnegie Dr. Suite 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
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
1 March 11, 2025
To the Honorable City Council
City of San Jacinto
We have audited the financial statements of the City of San Jacinto (the entity) as of and for the year ended June 30, 2024, and have issued our report thereon dated March 11, 2025. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 21, 2024, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the entity solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, have complied with all relevant ethical requirements regarding independence.

5.A.1.b
Packet Pg. 505 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) The Honorable City Council
City of San Jacinto Page 2
Significant Risks Identified
We have identified the following significant risks:

Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the City’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the entity is included in Note 1 to the financial statements. The entity has adopted the provisions of GASB Statement No. 96, Subscription Based Information Technology Arrangements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events, and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly of management’s current judgments.

The most sensitive accounting estimates affecting the City’s financial statements are:

Management’s estimate of fair market value of investments based on market values provided by outside sources. We evaluated the key factors and assumptions used to develop the fair market value of investments in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of depreciation expense is based on the useful lives of acquired assets.

We evaluated the key factors and assumptions used to develop depreciation expense in determining that it is reasonable in relation to the financial statements taken as a whole.

5.A.1.b
Packet Pg. 506 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) The Honorable City Council
City of San Jacinto Page 3
Management’s estimate of claims payable is based on claims loss reports from third party claims management companies. We evaluated the key factors and assumptions used to develop the claims payable estimate in determining that is reasonable in relation to the financial statements taken as a whole.

The estimate of the net pension liability and the related deferred amounts is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the statements taken as a whole.

Management’s estimate of lease and subscription liabilities, right-to-use assets, and asset amortization is based on present value calculations using certain terms and assumptions in the lease agreements and estimated useful lives of assets in accordance with generally accepted accounting principles. We evaluated the key factors and assumptions used to develop the lease related estimates in determining that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:

The disclosure of the fair value of investments in the notes to the financial statements represents amounts susceptible to market fluctuations.

The disclosure of capital assets, net, in the basic financial statements is based on historical information which could differ from actual useful lives of each capitalized item.

The disclosure of net pension liability and related deferred amounts in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.

The disclosure of claims payable in the basic financial statements is based on claims loss reports from third party claims management companies. Actual future liabilities may vary from disclosed estimates.

The disclosure of leases and subscription liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the lease agreements which could differ from actual amounts.

The financial statement disclosures are neutral, consistent, and clear.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

5.A.1.b
Packet Pg. 507 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) The Honorable City Council
City of San Jacinto Page 4
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all material misstatements that were uncorrected by management that we believe are not trivial.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures.

There were no corrected misstatements that we deemed material brought to the attention of management as a result of our audit procedures.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the entity’s financial statements or the auditor’s report.

No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated March 11, 2024.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the entity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity’s auditors.

Other Information Included in Annual Reports
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

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Packet Pg. 508 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) The Honorable City Council
City of San Jacinto Page 5
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Very truly yours,
March 11, 2025

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Packet Pg. 509 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024)

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Packet Pg. 512 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024)

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Packet Pg. 514 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024)

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Packet Pg. 515 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) 735 E. Carnegie Dr. Suite 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
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
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Governmental Audit
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ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
1 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable City Council
City of San Jacinto, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Jacinto (the entity) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements, and have issued our report thereon dated March 11, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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Packet Pg. 516 Attachment: GAS Report (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) The Honorable City Council
City of San Jacinto
2 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the entity’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
March 11, 2025

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Packet Pg. 517 Attachment: GAS Report (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2024) March 18, 2025
TO: City Council
REQUESTED BY: Robert Johnson, City Manager
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: 2025 Independence Day Parade & Street Festival RECOMMENDATION:

Staff recommends that the City Council discuss and provide direction on the preferred date for the 2025 Independence Day Parade & Street Festival, considering whether to hold the event on Saturday, June 28, 2025 (the Saturday before the holiday) or on Friday, July 4, 2025 (the actual holiday). City Council may also consider implementing a long-term scheduling policy based on the day of the week the holiday falls on.

BACKGROUND:

Historically, the City of San Jacinto has held its annual Independence Day Parade & Street Festival on the Fourth of July. However, in 2024, the event was moved to the Saturday prior to the holiday. This adjustment was made to accommodate various factors, including staff availability, community participation, and alignment with surrounding city events.

ANALYSIS:

The selection of the event date carries significant implications for event attendance, city resources, and staff workload. Below is the analysis of the potential advantages and disadvantages of each option:

Option 1: Saturday, June 28, 2025 (Saturday before the holiday) Pros
• Allows residents to participate without conflicting with personal Fourth of July plans, particularly those traveling for the long weekend.
• Potential for increased participation from surrounding communities, as some larger neighboring cities hold their events on July 4th.
• Easier coordination with vendors and entertainment, as they may have more availability prior to the holiday for smaller events.
• Equipment and entertainment fees tend to be significantly lower as it does not fall on the Fourth of July holiday.
• Provides staff the opportunity to enjoy the holiday with their own families.

Cons
• The event may not feel as closely tied to the Fourth of July holiday, even though several surrounding cities host large Independence Day events the Saturday prior to the holiday. • Some residents may prefer celebrating on the actual holiday than the weekend prior. • Potential scheduling conflicts with other regional events also choosing to hold celebrations on the Saturday before the Fourth.

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Option 2: Friday, July 4, 2025 (Actual holiday)
Pros
• Aligns with historical tradition and maintains the significance of celebrating Independence Day on the actual holiday.
• May not conflict with or be overshadowed by other regional celebrations occurring earlier.
• May draw residents who prefer celebrating locally instead of traveling.

Cons
• The July 4th holiday falls on a Friday in 2025, creating a four-day weekend. Many residents may choose to leave town, potentially impacting attendance. • Increased competition for vendors and entertainment, as many cities host their events on the same day.
• Entertainment, equipment rental, and delivery fees tend to be higher on the Fourth of July holiday.
• Staff working the event may have limited time to spend with their own families on the holiday, as well as holiday/overtime pay to employees working the event.

Council may also consider adopting a policy for future scheduling:
• If July 4th falls on a Sunday through Thursday, the event will be held on the Saturday before the holiday.
• If July 4th falls on a Friday or Saturday, the event will be held on the actual holiday.

This approach would provide consistency for planning while also accommodating different scheduling concerns based on the day of the week the holiday falls on.

Staff has conducted research on surrounding city event celebrations. This includes a review of 21 cities with some form of Independence Day celebration.

Of these, 14 cities hold their events on the actual holiday of July 4th, three (3) cities hold celebrations on July 3rd, one (1) city celebrates on July 5th, and only three (3) cities have scheduled their events for the Saturday before the holiday.

Of these 21 cities, 19 include an evening fireworks show. This information provides regional context for consideration in determining the most suitable date for the City of San Jacinto’s event.

OPTIONS FOR DISCUSSION:

1. Continue to hold the event the Saturday before the holiday.

2. Return the event to the Fourth of July holiday.

3. Adoption of a policy for future scheduling.

FISCAL IMPACT:

Funds for the event have already been approved in the FY 24/25 budget and sponsorships from local agencies and organizations will offset the approved budgeted amount. Staff may also

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conduct further analysis to determine if one date poses a significant cost difference compared to the other. Costs related to public safety, staffing, vendors, equipment, and entertainment availability may vary depending on the chosen date

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March 18, 2025
TO: City Council
REQUESTED BY:

APPROVED BY:

Craig Hayes, City Attorney
Robert A. Johnson, City Manager
SUBJECT: Resolution of the City Authorizing the Creation of the City of San Jacinto Public Financing Authorty
RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 4066, establishing the City of San Jacinto Public Financing Authority.

Introduction
The City has identified the need to enter into a financing agreement for the purpose of constructing certain improvements to the City’s water system. The City may enter into obligations that are secured by the water system revenues to finance the projects. The legal structure that must be used for the financing requires the City to enter into an installment purchase agreement for the water system improvements with a public financing authority or nonprofit benefit corporation.

The City’s existing financing authority, the San Jacinto Financing Authority, consists of two members, the City and the Former Redevelopment Agency of the City of San Jacinto (the “Former Redevelopment Agency”). The Successor Agency to the Former Redevelopment Agency will dissolve upon the satisfaction of the Former Redevelopment Agency’s outstanding obligations. This is anticipated to occur prior to the maturity of the proposed obligations to be issued to finance the water system improvements. As such, the existing financing authority is not a viable financing authority to utilize.

It is recommended that a new joint powers authority be formed by the City and the Industrial Development Authority of the City of San Jacinto (“Industrial Development Authority”) to allow the City to enter into a proposed financing for the water system improvements. The Industrial Development Authority was activated by the City Council of the City of San Jacinto to assist the community in industry development by providing a financing mechanism to encourage such development in the City. The joint powers authority is proposed to be called the City of San Jacinto Public Financing Authority (“Financing Authority”) and the Financing Authority will issue the water revenue obligations.

Background
The Joint Exercise of Powers Act, Government Code section 6500 et seq. (“Act”) permits public agencies to enter into a joint exercise of powers agreement (“JEPA”) to form a separate governmental entity to jointly exercise powers common to the member agencies. (Government

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Code Section 6502). The parties to the JEPA may create a separate legal entity (i.e. a joint powers authority) under the JEPA to administer the agreement. Additionally, the joint powers authorities have the power of issuing obligations secured by local revenues, in the case of the City, water system revenues. This is a commonly utilized financing mechanism for cities throughout the State of California.

Discussion
The governing body of the Financing Authority will be the Mayor and members of the City Council. Any regular meeting of the Financing Authority’s Board of Directors shall be held at the same time and same location as regular meetings of the City Council and noticed in the same manner. The Board of Directors of the Financing Authority will conduct a regular meeting at least once each calendar year on the first Tuesday of December. The Financing Authority Board meetings will have separate agendas from the City Council meetings, and will comply with Brown Act requirements.

Presented before the City Council is the following resolution related to the formation of the Financing Authority and the JEPA:
• Resolution No. 4066, A Resolution of the City Council of the City of San Jacinto, California, Authorizing the Creation of the City of San Jacinto Public Financing Authority and Certain Other Matters Pertaining Thereto.

Presented before the Board of Directors of the Industrial Development Authority is the following resolution related to forming the Financing Authority and the JEPA:
• Resolution No. IA 25-01, A Resolution of the Board of Directors of the City of San Jacinto Industrial Development Authority of the City of San Jacinto Authorizing the Creation of the City of San Jacinto Public Financing Authority and Certain Other Matters Pertaining Thereto.

Presented before the Board of Directors of the Financing Authority is the following resolution related to approval of the Financing Authority bylaws:
• Resolution No. PFA 25-01, A Resolution of the Board of Directors of the City of San Jacinto Public Financing Authority Approving and Adopting Bylaws, Establishing Regular Meeting Dates and Authorizing Certain Other Actions in Connection Therewith.

It is anticipated that at its April 1st meeting, the City Council will consider whether to enter into obligations to finance improvements to its water system.

FISCAL IMPACT:

None.

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ATTACHMENTS:

Resolution No. 4066 - City Authorization of JPA
Joint Exercise of Powers Agreement - San Jacinto Public Financing Authority

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24438.70027\43315682.1

JOINT EXERCISE OF POWERS AGREEMENT

CREATING

CITY OF SAN JACINTO PUBLIC FINANCING AUTHORITY
Dated as of March 18, 2025

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TABLE OF CONTENTS
Page
-iARTICLE I

DEFINITIONS
Section 1.01. Definitions........................................................................................................ 1

ARTICLE II

GENERAL PROVISIONS
Section 2.01. Purpose............................................................................................................. 3 Section 2.02. Creation of Authority....................................................................................... 3

ARTICLE III
BOARD
Section 3.01. Board................................................................................................................ 3 Section 3.02. Powers.............................................................................................................. 3 Section 3.03. Compensation .................................................................................................. 4 Section 3.04. Meetings of the Board; Voting ........................................................................ 4

ARTICLE IV

OFFICERS AND EMPLOYEES
Section 4.01. Officers ............................................................................................................ 4 Section 4.02. Subordinate Officers........................................................................................ 5 Section 4.03. Removal of Officers......................................................................................... 5 Section 4.04. Executive Director ........................................................................................... 5 Section 4.05. Chairperson...................................................................................................... 5 Section 4.06. Vice Chairperson ............................................................................................. 5 Section 4.07. Secretary .......................................................................................................... 5 Section 4.08. Treasurer .......................................................................................................... 5 Section 4.09. Officers in Charge of Records, Funds and Accounts....................................... 6 Section 4.10. Other Employees.............................................................................................. 6 Section 4.11. Conflict of Interest Code.................................................................................. 6

ARTICLE V
POWERS
Section 5.01. General Powers................................................................................................ 6 Section 5.02. Specific Powers................................................................................................ 6 Section 5.03. Restrictions on Exercise of Powers.................................................................. 7 Section 5.04. Liability; Contribution ..................................................................................... 8 Section 5.05. Indemnity by Authority for Litigation Expenses of Officer, Board Member or Employee ...................................................................................... 8 Section 5.06. Execution of Contracts..................................................................................... 8

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TABLE OF CONTENTS
(continued)
Page
-iiARTICLE VI
CONTRIBUTION; ACCOUNTS AND REPORTS; FUNDS
Section 6.01. Contributions.................................................................................................... 8 Section 6.02. Accounts and Reports...................................................................................... 9 Section 6.03. Funds................................................................................................................ 9 Section 6.04. Annual Budget and Administrative Expenses ............................................... 10

ARTICLE VII
TERM; ADDITION OF MEMBERS; DISSOLUTION
Section 7.01. Term............................................................................................................... 10 Section 7.02. Addition of Members..................................................................................... 10 Section 7.03. Withdrawal or Exclusion of a Member.......................................................... 10 Section 7.04. Dissolution ..................................................................................................... 11

ARTICLE VIII

MISCELLANEOUS PROVISIONS
Section 8.01. Notices ........................................................................................................... 11 Section 8.02. Section Headings ........................................................................................... 12 Section 8.03. Consent .......................................................................................................... 12 Section 8.04. Law Governing .............................................................................................. 12 Section 8.05. Amendments.................................................................................................. 12 Section 8.06. Enforcement by Authority ............................................................................. 12 Section 8.07. Severability .................................................................................................... 12 Section 8.08. Successors and Assigns.................................................................................. 12 Section 8.09. Execution of Counterparts ............................................................................. 13

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Packet Pg. 526 Attachment: Joint Exercise of Powers Agreement - San Jacinto Public Financing Authority (Resolution of the City Authorizing the Creation of 24438.70027\43315682.1
1 JOINT EXERCISE OF POWERS AGREEMENT

CREATING THE CITY OF SAN JACINTO PUBLIC FINANCING AUTHORITY THIS JOINT EXERCISE OF POWERS AGREEMENT (the “Agreement”), is made and entered into this March 18, 2025 by and among the Members (as defined herein); W I T N E S S E T H:

WHEREAS, agencies formed under Article 1 (commencing with Section 6500) of the Joint Powers Law (as defined herein) are permitted to provide financing for any of their members or other local public agencies in the State of California in connection with the lease, acquisition, construction and improvement of public capital improvements, working capital requirements or insurance programs of such members or other local agencies; and WHEREAS, the Members wish to form an agency under the Joint Powers Law, known as the City of San Jacinto Public Financing Authority, for the purpose of providing an entity to assist in providing financing, for purposes which are authorized by law and which could finance, lease, own, operate and maintain public capital improvements for any of its Members, or to be owned by any of its Members (as defined herein).

NOW, THEREFORE, in consideration of the above premises and of the mutual promises herein contained, the Members do hereby agree as follows:

ARTICLE I

DEFINITIONS
Section 1.01. Definitions. In addition to the other terms defined herein, the following terms, whether in the singular or in the plural, when used herein and initially capitalized shall have the meanings specified.
“Agreement” means this Joint Exercise of Powers Agreement, as originally entered into or as amended from time to time in accordance with Section 8.05 hereof. “Authority” means the City of San Jacinto Public Financing Authority established pursuant to Section 2.02 hereof.
“Board” means the Board referred to in Section 3.01 hereof, which shall be the governing body of the Authority.
“Bond Law” means the Marks-Roos Local Bond Pooling Act of 1985, being Article 4 of the Joint Powers Law (commencing with Section 6584), as amended from time to time, Article 2 of the Joint Powers Law (commencing with Section 6540), as amended from time to time, or any other law available for use by the Authority in the authorization and issuance of Indebtedness or to provide for the financing of Indebtedness and/or Public Capital Improvements, as amended from time to time.

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Packet Pg. 527 Attachment: Joint Exercise of Powers Agreement - San Jacinto Public Financing Authority (Resolution of the City Authorizing the Creation of 24438.70027\43315682.1
2 “Bond Purchase Agreement” means an agreement between the Authority and a Member or a Local Agency, pursuant to which the Authority agrees to purchase Indebtedness from a Member or a Local Agency, as the case may be.
“City” means the City of San Jacinto.
“Fiscal Year” means the fiscal year of the Authority as established from time to time by the Board, being at the date of this Agreement the period from July 1 in any calendar year to and including June 30 in the succeeding calendar year.
“Industrial Development Authority” means the City of San Jacinto Industrial Development Authority.
“Indebtedness” means bonds, notes or other evidences of indebtedness, and all other obligations, instruments and agreements constituting “Bonds” under the Joint Powers Law, which are issued or incurred by or on behalf of the Authority, a Member or a Local Agency pursuant to the Bond Law or pursuant to any other provision of law to finance the lease, acquisition, construction or improvement of Public Capital Improvements, Working Capital Requirements, or liability or other insurance needs of any Local Agency (the “Local Obligations”). “Joint Powers Law” means Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, as amended from time to time. “Liability Share” means, with respect to any Member, the amount of a judgment for damages divided by the number of Members at the time the act or omission occurred, unless any portion of the judgment arises from an act or omission directly related to the studying, planning, financing, developing, acquiring, purchasing, construction, reconstructing, implementing, improving, enlarging, enhancing, operating, maintaining, selling, disposing of, or decommissioning of any project undertaken by the Authority under this Agreement, in which case, with respect to such portion, the term “Liability Share” shall mean, with respect to any Member, the amount of such portion multiplied by a fraction equal to (i) such Member’s entitlement or right, if any, to participate in such project at the time the act or omission occurred, divided by (ii) the aggregate amount of all Members’ entitlements or rights to participate in such project at the time the act or omission occurred.
“Local Agency” means each of the Members, any agency or subdivision of a Member, and any other city, county, authority, district or public corporation of the State of California. “Members” means, collectively, all of the Members that are parties to this Agreement, which Members shall initially consist of the City of San Jacinto and the City of San Jacinto Industrial Development Authority and which shall include all additional Members that become parties hereto pursuant to the provisions of Section 7.02 hereof; provided, however, that the term “Member” shall not include any entity which shall have withdrawn or been excluded from the Authority pursuant to Section 7.03 hereof.
“Public Agency” has the meaning given to the term “public agency” in Article 1 of the Joint Powers Law, as may be amended from time to time.

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Packet Pg. 528 Attachment: Joint Exercise of Powers Agreement - San Jacinto Public Financing Authority (Resolution of the City Authorizing the Creation of 24438.70027\43315682.1
3 “Public Capital Improvements” has the meaning given such term in Section 6585(n) of the Bond Law, as such provision may be amended from time to time. “Working Capital Requirements” means the requirements of any Local Agency for funds to be used by, or on behalf of, such Local Agency for any purpose for which such Local Agency may borrow money pursuant to Section 53852 of the California Government Code, as amended from time to time.

ARTICLE II

GENERAL PROVISIONS
Section 2.01. Purpose. This Agreement is made pursuant to the Joint Powers Law providing for the joint exercise of powers common to two or more Members, and for other purposes as permitted under the Joint Powers Law and the Bond Law. The purpose of this Agreement is to provide for the financing or refinancing of Public Capital Improvements for and Working Capital Requirements and insurance programs of, the Members and any Local Agency, including without limitation, the purchase by the Authority of Indebtedness of any of the Members or a Local Agency pursuant to Bond Purchase Agreements, the lending of funds by the Authority to a Member or a Local Agency or the entering into of contractual arrangements by the Authority with a Member or a Local Agency and any other transaction authorized by the Joint Powers Law and other laws; engaging in financings relating to the encouragement of economic development and the stimulation of public revenues in the City through the acquisition and financing by the Authority of such Public Capital Improvements; and to engage in any other transactions authorized by the Joint Powers Law and other laws.

Section 2.02. Creation of Authority. Pursuant to the Joint Powers Law, there is hereby created a public entity to be known as the “City of San Jacinto Public Financing Authority”. The Authority shall be a public entity separate and apart from the Members, and shall administer this Agreement.

ARTICLE III
BOARD
Section 3.01. Board. The Authority shall be governed by a Board, which shall be comprised of members determined as provided in this Section 3.01. The Board shall be called the “Board of the City of San Jacinto Public Financing Authority.” Notwithstanding anything contained in this Section 3.01 to the contrary, no member of the Board shall hold membership on the Board after the expiration of his or her term as a member of the governing body of a Member, or after he or she resigns, is removed or for any other reason no longer serves as a member of the governing body of a Member. The Board members shall be the members of the City Council of the City.

Section 3.02. Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of this Authority shall be vested in and exercised by and its property controlled and its affairs conducted by the Board. The Board shall have the responsibility for the

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Packet Pg. 529 Attachment: Joint Exercise of Powers Agreement - San Jacinto Public Financing Authority (Resolution of the City Authorizing the Creation of 24438.70027\43315682.1
4 general management of the affairs, property and business of the Authority and may, from time to time, adopt and modify such Bylaws and other rules and regulations for that purpose and for the conduct of its meetings as it may deem proper.

Section 3.03. Compensation. Members of the Board shall serve without compensation.

Each such member may be reimbursed for necessary and actual expenses, including travel incident to his or her services as member of the Board, pursuant to resolution of the Board. Any member of the Board may elect, however, to decline said reimbursement.

Section 3.04. Meetings of the Board; Voting.
(a) Call, Notice and Conduct of Meetings. All meetings of the Board, including without limitation, regular, adjourned regular and special meetings, shall be called, noticed, held and conducted in accordance with the Ralph M. Brown Act, being Sections 54950 et seq. of the California Government Code, as amended from time to time. (b) Regular Meetings. The Board shall hold a regular meeting not less than once each calendar year. Regular meetings of the Board shall be held at such time as the Board may fix by resolution from time to time, and if any day so fixed shall fall upon a Saturday, Sunday or legal holiday, then, upon the next succeeding business day at the same hour.
(c) Special Meetings. Special meetings of the Board shall be held whenever called by the Chairperson of the Authority or by a majority of the members of the Board, in accordance with the provisions of the California Government Code, as amended from time to time.
(d) Quorum. A majority of the total number of members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time.
(e) Voting. Each member of the Board shall have one vote. The affirmative votes of at least a majority of the members of the Board present at any meeting at which a quorum is present shall be required for the Board to take any action. Every act or decision done or made by a majority of the members of the Board present at any meeting at which a quorum is present shall be the act of the Board.

ARTICLE IV

OFFICERS AND EMPLOYEES
Section 4.01. Officers. The officers of the Authority shall be a Chairperson, a Vice Chairperson, an Executive Director, a Secretary, a Treasurer and such other officers as the Board may appoint. The Chairperson shall be the Mayor of the City. The Vice Chairperson shall be the Mayor Pro Tem of the City. The Treasurer shall be the Finance Director of the City. The City Manager of the City shall serve as the Executive Director of the Authority. The City Clerk of the City shall serve as the Secretary of the Authority.

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Packet Pg. 530 Attachment: Joint Exercise of Powers Agreement - San Jacinto Public Financing Authority (Resolution of the City Authorizing the Creation of 24438.70027\43315682.1
5 Section 4.02. Subordinate Officers. The Board may elect or authorize the appointment of such other officers than those herein above mentioned as the business of the Authority may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in this Agreement, or as the Board, from time to time, may authorize or determine.

Section 4.03. Removal of Officers. Any officer may be removed, either with or without cause, by a majority of the members of the Board at any regular or special meeting of the Board.

Should a vacancy occur in any office as a result of death, resignation, removal, disqualification or any other cause, the Board may delegate the powers and duties of such office to any officers or to any members of the Board until such time as a successor for said office has been appointed.

Section 4.04. Executive Director. The Executive Director shall be the chief executive officer of the Authority and shall, subject to the control of the Board, have general supervision, direction and control of the business and officers of the Authority. He or she shall be ex officio member of all standing committees, and shall have the general powers and duties of management of the Authority and shall have such other powers and duties as may be prescribed by the Board or this Agreement.

Section 4.05. Chairperson. The Chairperson shall preside over the Board providing leadership, oversight and direction in accordance with this Agreement and other agreements of the Authority. The Chairperson shall convene, facilitate and preside over meetings of the Board in compliance with all applicable laws and regulations and in coordination with the Executive Director.

Section 4.06. Vice Chairperson. In the absence or disability of the Chairperson, the Vice Chairperson shall perform all the duties of the Chairperson and when so acting shall have all the powers of and be subject to all of the restrictions upon the Chairperson. The Vice Chairperson shall have such other powers and perform such other duties as may, from time to time, be prescribed for him or her by the Board or this Agreement.

Section 4.07. Secretary. The Secretary shall keep or cause to be kept a book of minutes at the principal office or at such other place as the Board may order, of all meetings of the Board, with the time and place of holding, whether regular or special, and if special, how authorized, the notice thereof given, the names of those present at Board meetings and the proceedings thereof.

The Secretary shall give or cause to be given notice of all meetings of the Board. The Secretary shall keep the Authority records in safe custody and shall have such other powers and perform such other duties as may be prescribed by the Board or this Agreement.

Section 4.08. Treasurer. Pursuant to Section 6505.6 of the Joint Powers Law, the Board shall designate a Treasurer of the Authority. Subject to the applicable provisions of any indenture or resolution providing for a trustee or other fiscal agent, the Treasurer is designated as the depositary of the Authority to have custody of all the money of the Authority, from whatever source, and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Joint Powers Law.

The Treasurer is hereby designated as controller of the Authority and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Joint Powers Law. The

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6 controller of the Authority shall draw checks to pay demands against the Authority when the demands have been approved by the Authority.

Section 4.09. Officers in Charge of Records, Funds and Accounts. The Treasurer to the extent such officer’s duties and responsibilities require, is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond as required by Section 6505.1 of the Joint Powers Law in the amount of $25,000.

Section 4.10. Other Employees. The Board shall have the power to appoint and employ such other officers, employees, consultants and independent contractors as it may deem necessary for the purposes of this Agreement, any of whom may be employees of a Member, and who shall have such powers, duties and responsibilities as are determined by the Board.

All of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, workers’ compensation and other benefits which apply to the activities of officers, agents, or employees of a public agency when performing their respective functions shall apply to them to the same degree and extent while engaged in the performance of any of the functions and other duties under this Agreement.

None of the officers, agents, or employees directly employed by the Authority shall be deemed, by reason of their employment by the Authority to be employed by any of the Members or, by reason of their employment by the Authority, to be subject to any of the requirements of any of the Members.

Section 4.11. Conflict of Interest Code. The Authority by resolution shall adopt by reference a Conflict of Interest Code as required by the Political Reform Act of 1974, commencing with section 81000 of the Government Code of the State of California.

ARTICLE V
POWERS
Section 5.01. General Powers. The Authority shall exercise in the manner herein provided powers common to Members, or as otherwise permitted under the Joint Powers Law, and necessary or convenient to the accomplishment of the purposes of this Agreement, subject to the restrictions set forth in Section 5.03 hereof.

As provided in the Joint Powers Law, the Authority shall be a public entity separate from the Members. The Authority shall have all of the powers provided in the Joint Powers Law, including but not limited to Article 4 of the Joint Powers Law (commencing with Section 6584), and including the power to issue or incur Indebtedness under the Bond Law.

Section 5.02. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including but not limited to, any or all of the following:
(a) to make and enter into contracts;

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7 (b) to employ agents or employees;
(c) to plan, develop, acquire, construct, manage, maintain, repair, replace or operate any Public Capital Improvement, including the common power of the Members to acquire any Public Capital Improvement by the power of eminent domain; (d) to acquire (by the exercise of the power of eminent domain or otherwise), hold, lease, sell or otherwise dispose of any real or personal property, tangible or intangible, and any interests therein, wherever located;
(e) to issue or incur Indebtedness and otherwise to incur debts, liabilities or obligations, provided that no such Indebtedness, debt, liability or obligation shall constitute a debt, liability or obligation of any of the Members;
(f) to sue and be sued in its own name;
(g) to establish a budget and authorize expenditures therefrom; (h) to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States or of the State of California or from any private sources; (i) to enter into agreements for the creation of separate public entities and agencies pursuant to the Joint Powers Law;
(j) to invest any money in the treasury as determined by the Authority, in accordance with applicable provisions of the Joint Powers Law and Section 53601 of the California Government Code, as amended from time to time; (k) to apply for letters of credit or other forms of financial guarantees in order to secure the repayment of Indebtedness and enter into agreements in connection therewith; (l) to carry out and enforce all the provisions of this Agreement; (m) to make and enter into Bond Purchase Agreements;
(n) to purchase Indebtedness of a Member or any Local Agency; (o) to establish non-profit corporations or for-profit corporations to assist in accomplishing any of its objectives; and
(p) to exercise any and all other powers as may be permitted by State law and/or the Joint Powers Law (including Section 6588 of the Joint Powers Law).

Section 5.03. Restrictions on Exercise of Powers. The powers of the Authority shall be exercised in the manner provided in the Joint Powers Law and in the Bond Law subject only to the restrictions upon the manner of exercising such powers as are imposed upon the Members in the exercise of similar powers.

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8 Section 5.04. Liability; Contribution. Pursuant to the Joint Powers Law, the debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of any of the Members, except as provided by Section 895.2 of the California Government Code, as amended from time to time, in the case of injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement. In the event any Member is held liable upon any judgment for damages caused by a negligent or wrongful act or omission occurring in the performance of this Agreement, and pays in excess of its Liability Share of such judgment, such Member shall be entitled to contribution from each other Member and may require each other Member to pay an amount towards the judgment for damages, but in no event shall any such other Member be required to pay in excess of its Liability Share of such judgment. No Board member, Member, officer, agent or employee of the Authority shall be individually or personally liable for the payment of the principal of or premium or interest on any obligations of the Authority or be subject to any personal liability or accountability by reason of any obligations of the Authority; but nothing herein contained shall relieve any such Board member, Member, officer, agent or employee from the performance of any official duty provided by law or by the instruments authorizing the issuance of any obligations of the Authority. Nothing contained in this Agreement shall in any way diminish the liability of any Member or other party with respect to any contract between such Member or other party and the Authority.

Section 5.05. Indemnity by Authority for Litigation Expenses of Officer, Board Member or Employee. In the event any Board member, officer or employee of the Authority be sued, either alone or with others, because he or she is or was a Board member, officer or employee of the Authority, in any proceeding arising out of his or her alleged misfeasance or nonfeasance in the performance of his or her duties or out of any alleged wrongful act against the Authority or by the Authority, indemnity to such person for reasonable expenses, including attorneys’ fees incurred in the defense of the proceedings, may be assessed against the Authority or its receiver by the court in the same or a separate proceeding if the person sued acted in good faith and in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful. The amount of such indemnity shall equal the amount of the expenses, including attorneys’ fees, and the amount of any judgment, incurred in the defense of the proceeding.

Section 5.06. Execution of Contracts. The Board, except as otherwise provided in this Agreement, may authorize any officer or officers, agent or agents, to enter into any contract or execute any contract or execute any instrument in the name of and on behalf of the Authority and such authorization may be in general or confined to specific instances and unless so authorized by the Board, no officer, agent or employee shall have any power or authority to bind the Authority by any contract or engagement or to pledge its credit or to render it liable for any purpose or in any amount.

ARTICLE VI
CONTRIBUTION; ACCOUNTS AND REPORTS; FUNDS
Section 6.01. Contributions. In accordance with the California Government Code, the Members may in the appropriate circumstances when required hereunder: (a) make contributions from their treasuries as approved from time to time by the Board, for the purposes set forth herein,

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9 (b) make payments of public funds to defray the cost of such purposes, (c) make advances of public funds for such purposes, such advances to be repaid as provided herein, or (d) use their personnel, equipment or property in lieu of other contributions or advances. The provisions of Section 6513 of the Joint Powers Law are hereby incorporated into this Agreement. The Authority may make such arrangements relative to the repayment or return to the Members of such contributions, payments and advances as are approved from time to time by the Board.

Any Member which fails to make or pay when due any required contribution, payment or advance to the Authority, may have its rights under this Agreement terminated and may be excluded from participation in the Authority as provided in Section 7.03(c) hereof. Any such Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Board prior to such Member’s exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval.

Section 6.02. Accounts and Reports. There shall be strict accountability of all funds and reporting of all receipts and disbursements of the Authority. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of any resolution, indenture or other instrument of the Authority securing its Indebtedness, except insofar as such powers, duties and responsibilities are assigned to a trustee appointed pursuant to such resolution, indenture or instrument. The books and records of the Authority shall be open to inspection at all reasonable times by the Members and their representatives. The Authority shall give an audited written report of all financial activities for each Fiscal Year to the Members within 210 days after the close of each Fiscal Year.

The Treasurer, as controller of the Authority, shall contract with a certified public accountant or public accountant to make an independent annual audit of the accounts and records of the Authority. In each case the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the California Government Code, as amended from time to time, and shall conform to generally accepted auditing standards. When such an audit of an account and record is made by a certified public accountant or public accountant, a report thereof shall be filed as public records with each of the Members and with the county auditor of Riverside County. Such report shall be filed within 12 months of the end of the Fiscal Year under examination.

Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants, in making an audit pursuant to this Section shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for the purpose.

Section 6.03. Funds. Subject to the applicable provisions of any instrument or agreement which the Authority may enter into, which may provide for a trustee to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds as nearly as possible in accordance with generally accepted accounting practices, and shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement.

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10 Section 6.04. Annual Budget and Administrative Expenses. The Board may adopt a budget for administrative expenses, which shall include all expenses not included in any financing issue of the Authority, annually prior to July 1st of each year. The estimated annual administrative expenses of the Authority shall be allocated by the Authority to the Members equally.

ARTICLE VII
TERM; ADDITION OF MEMBERS; DISSOLUTION
Section 7.01. Term. This Agreement shall become effective as of the date first set forth above, and the Authority shall come into existence, on the date of execution and delivery hereof, and this Agreement shall thereafter continue in full force and effect until the later of December 31, 2090, or the date on which all Indebtedness and other obligations of the Authority and the interest thereon shall have been paid in full or until adequate provision for such payment shall have been made in accordance with the instruments governing such Indebtedness, and no contracts to which the Authority is a party remain in effect, unless earlier dissolved pursuant to Section 7.04 hereof.

Section 7.02. Addition of Members. (a) Public Agencies possessing one or more of the powers specified in the first paragraph of the recitals to this Agreement may be added as parties to this Agreement, and become Members, upon the filing by such Public Agency with the Board of an instrument in form and substance satisfactory to the Board together with a certified copy of a resolution of its governing body, whereby the Public Agency (i) agrees to the provisions of this Agreement and (ii) requests to become a Member. In reviewing an application for membership, the Board may reject said application based on the creditworthiness of the applicant or on any other matter which has affected or may affect the creditworthiness of the applicant and which may thereby affect the creditworthiness of the Authority. The Board also reserves the right to reject an applicant if the Board determines that the membership of such applicant would be detrimental to the effectiveness of the Authority or would interfere with the realization of the Authority’s goals and purposes.
(b) Notwithstanding Section 7.02(a) hereof, no such Public Agency shall become a Member until (i) its admission is approved by a vote of a majority of the Board voting on the matter and (ii) such Public Agency deposits or agrees to deposit with the Authority an amount equal to such share of the costs and expenses incurred by the Authority prior to the date of admission of such Public Agency as a Member as shall be determined by the Board.
(c) Upon satisfaction of the provisions of Section 7.02(a) and 7.02(b) hereof, such Public Agency shall be a Member for all purposes of this Agreement, and the instrument provided pursuant to Section 7.02(a) hereof shall become a part of the official records of the Authority. Neither the effectiveness of such membership nor such instrument shall constitute an amendment or modification of this Agreement for purposes of Section 8.05 hereof.

Section 7.03. Withdrawal or Exclusion of a Member. (a) Any Member may withdraw from the Authority upon the following conditions: (i) the Member shall have filed with the Board a certified copy of a resolution of its governing body expressing its desire to so withdraw and (ii)

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11 if the Authority, prior to the filing of such resolution, shall have incurred any obligation payable from contributions, payments or advances in accordance with Section 6.01 hereof, which obligation matures after the date of such filing, the withdrawing Member shall have paid, or made arrangements satisfactory to the Board to pay to the Authority its pro rata portion of such obligation.
(b) Upon compliance with the conditions specified in Section 7.03(a) hereof, the withdrawing Member shall no longer be considered a Member for any reason or purpose under this Agreement and its rights and obligations under this Agreement shall terminate. The withdrawal of a Member shall not affect any obligations of such Member under any contract between the withdrawing Member and the Authority. (c) Any Member which has (i) defaulted under a contract with the Authority, or (ii) failed to pay any required contributions, payments or advances in accordance with Section 6.01 hereof, may have its rights under this Agreement terminated and may be excluded from participating in the Authority by a vote of a majority of the members of the Board voting on the matter (excluding from voting the member(s) of the Board, if any, representing the defaulting Member). Any excluded Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Board prior to such Member’s exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval.

No withdrawal from membership pursuant to Sections 7.03(a) and 7.03(b) hereof or exclusion from participation pursuant to Section 7.03(c) hereof shall constitute an amendment or modification of this Agreement for purposes of Section 8.05 hereof.

Section 7.04. Dissolution. With the approval of the Board, the Authority may be dissolved, if at the time of such dissolution the Authority has no Indebtedness outstanding and is not a party to any contract remaining in effect (unless adequate provision shall have been made for the discharge of such contract). Upon the dissolution or termination of the Authority, and after payment or provision for payment, all debts and liabilities, the assets of the Authority shall be distributed to the Members in such manner as shall be determined by the Board.

ARTICLE VIII

MISCELLANEOUS PROVISIONS
Section 8.01. Notices. (a) Any notice, demand or request to any Member provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to the person designated by such Member upon the commencement of its membership in the Authority. (b) A Member may, at any time, by written notice to each other Member and the Authority, designate different persons or different addresses for the giving of notices, demands or requests to it hereunder.

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12 (c) Any notice, demand or request to the Authority provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to City of San Jacinto Public Financing Authority, 595 S San Jacinto Ave., San Jacinto, CA 92583, or at the notice address most recently provided by said Member pursuant to this Section 8.01. (d) The Authority may, at any time, by written notice to each Member, designate a different or additional person or a different address for giving notices, demands or requests to it hereunder.

Section 8.02. Section Headings. All section headings in this Agreement are for convenience of reference only and are not to be construed as modifying or governing the language in the section referred to or to define or limit the scope of any provision of this Agreement.

Section 8.03. Consent. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld.

Section 8.04. Law Governing and Venue. This Agreement is made in the State of California under the constitution and laws of the State of California, and is to be so construed.

Venue shall be held exclusively in Riverside County.

Section 8.05. Amendments. This Agreement may be amended at any time, or from time to time, except as limited by contract with the owners of Indebtedness issued or incurred by the Authority, a Member or a Local Agency or by applicable regulations or laws of any jurisdiction having authority, by one or more supplemental agreements executed by all then current Members either as required in order to carry out any of the provisions of this Agreement or for any other purpose.

Section 8.06. Enforcement by Authority. The Authority is hereby authorized to take any or all legal or equitable actions, including but not limited to injunction and specific performance, necessary or permitted by law to enforce this Agreement.

Section 8.07. Severability. In the event that any term, covenant or condition of this Agreement or the application of such term, covenant or condition shall be held invalid as to any person or circumstance by any court having jurisdiction in the premises, all other terms, covenants and conditions of this Agreement and their application shall not be affected thereby, but shall remain in force and effect unless a court holds that the provisions are not separable from all other provisions of this Agreement.

Section 8.08. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Members. No Member may assign any right or obligation hereunder without the written consent of the other Members. The immediately preceding sentence shall not affect, in any respect, any right of assignment under any contract between any Member and the Authority.

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13 Section 8.09. Execution of Counterparts. This Agreement may be executed in any number of counterparts. All such counterparts shall be deemed to be originals and shall together constitute but one and the same instrument.
(Signature page follows)

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S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, on the day and year first set forth above.

CITY OF SAN JACINTO
By: ______________________________________
Valerie Vandever, Mayor
ATTEST:
_________________________________
Julia Espinoza, City Clerk

CITY OF SAN JACINTO INDUSTRIAL

DEVELOPMENT AUTHORITY
By: ______________________________________
Valerie Vandever, Chairperson
ATTEST:
_________________________________
Julia Espinoza, Secretary
-Signature PageJoint Exercise of Powers Agreement
Creating City of San Jacinto Public Financing Authority

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TO: Board of Directors of the City of San Jacinto Industrial Development Authority REQUESTED BY:

APPROVED BY:

Craig Hayes, City Attorney
Robert A. Johnson, City Manager
SUBJECT: Resolution of the IDA Authorizing the Creation of the City of San Jacinto Public Financing Authorty
RECOMMENDATION:

Staff recommends that the Board of Directors adopt Resolution No. IA 25-01, establishing the City of San Jacinto Public Financing Authority.

Introduction
The City of San Jacinto has identified the need to enter into a financing agreement for the purpose of constructing certain improvements to the City’s water system. The City may enter into obligations that are secured by the water system revenues to finance the projects. The legal structure that must be used for the financing requires the City to enter into an installment purchase agreement for the water system improvements with a public financing authority or nonprofit benefit corporation. The City’s existing financing authority, the San Jacinto Financing Authority, consists of two members, the City and the Former Redevelopment Agency of the City of San Jacinto (the “Former Redevelopment Agency”). The Successor Agency to the Former Redevelopment Agency will dissolve upon the satisfaction of the Former Redevelopment Agency’s outstanding obligations. This is anticipated to occur prior to the maturity of the proposed obligations to be issued to finance the water system improvements. As such, the existing financing authority is not a viable financing authority to utilize.

It is recommended that a new joint powers authority be formed by the City and the Industrial Development Authority of the City of San Jacinto (“Industrial Development Authority”) to allow the City to enter into a proposed financing for the water system improvements. The Industrial Development Authority was activated by the City Council of the City of San Jacinto to assist the community in industry development by providing a financing mechanism to encourage such development in the City. The joint powers authority is proposed to be called the City of San Jacinto Public Financing Authority (“Financing Authority”) and the Financing Authority will issue the water revenue obligations.

Background
The Joint Exercise of Powers Act, Government Code section 6500 et seq. (“Act”), permits public agencies to enter into a joint exercise of powers agreement (“JEPA”) to form a separate governmental entity to jointly exercise powers common to the member agencies (Government Code Section 6502). The parties to the JEPA may create a separate legal entity (i.e. a joint powers authority) under the JEPA to administer the agreement. Additionally, the joint powers

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authorities have the power of issuing obligations secured by local revenues, in the case of the City, water system revenues. This is a commonly utilized financing mechanism for cities throughout the State of California.

Discussion
The governing body of the Financing Authority will be the Mayor and members of the City Council. Any regular meeting of the Financing Authority’s Board of Directors shall be held at the same time and same location as regular meetings of the City Council and noticed in the same manner. The Board of Directors of the Financing Authority will conduct a regular meeting at least once each calendar year on the first Tuesday of December. The Financing Authority Board meetings will have separate agendas from the City Council meetings, and will comply with Brown Act requirements.

Presented before the City Council is the following resolution related to the formation of the Financing Authority and the JEPA:
• Resolution No. 4066, A Resolution of the City Council of the City of San Jacinto, California, Authorizing the Creation of the City of San Jacinto Public Financing Authority and Certain Other Matters Pertaining Thereto.

Presented before the Board of Directors of the Industrial Development Authority is the following resolution related to forming the Financing Authority and the JEPA:
• Resolution No. IA 25-01, A Resolution of the Board of Directors of the City of San Jacinto Industrial Development Authority of the City of San Jacinto Authorizing the Creation of the City of San Jacinto Public Financing Authority and Certain Other Matters Pertaining Thereto.

Presented before the Board of Directors of the Financing Authority is the following resolution related to approval of the Financing Authority bylaws:
• Resolution No. PFA 25-01, A Resolution of the Board of Directors of the City of San Jacinto Public Financing Authority Approving and Adopting Bylaws, Establishing Regular Meeting Dates and Authorizing Certain Other Actions in Connection Therewith.

It is anticipated that at its April 1st meeting, the City Council will consider whether to enter into obligations to finance improvements to its water system.

FISCAL IMPACT:

None.

ATTACHMENTS:

Resolution No. IA 25-01 - IA Authorization of JPA

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Joint Exercise of Powers Agreement - San Jacinto Public Financing Authority

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Resolution No. IA 25-01