721
FY24/25 Exhibit “C”
CITY OF WILDOMAR
July 1, 2024 – June 30, 2027
EXHIBIT “C”
TO THE COOPERATIVE AGREEMENT
TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE, FIRE MARSHAL
AND MEDICAL EMERGENCY SERVICES FOR THE CITY OF WILDOMAR DATED JULY 1, 2024
PAYMENT FOR SERVICES
ADDITIONAL SERVICES
FIRE ENGINE USE AGREEMENT
Station 61
Engine E61, RCO No. 16-849 (VIN: 4S7CT2D97HC081449)
The Fire Engine Use Agreement is utilized in the event that a fire engine(s) which was initially purchased by the CITY, and then the CITY elects to have the COUNTY take responsibility of said fire engine(s). The Fire Engine Use Agreement guarantees the CITY the use of this fire engine(s), the COUNTY network of equipment, and resources of the COUNTY.
This fire engine(s) shall be used as an integrated unit for Fire Services as set forth in this Cooperative Agreement between the COUNTY and CITY and shall be stationed primarily in the CITY. The change in ownership of the fire engine does not waive or supersede any responsibilities of the CITY pursuant to this agreement. This exhibit is strictly to further detail for the CITY, the responsibilities and costs associated within the Cooperative Agreement between the COUNTY and CITY; therefore, the Fire Engine Use Agreement is inseparable.
The CITY will have the option of transferring title of said fire engine(s) to the COUNTY. If the CITY transfers title of said fire engine(s) to the County, the County will take ownership of the said fire engine(s), and the County will maintain insurance on said fire engine(s). If the CITY opts to maintain ownership and title of said fire engine(s), the CITY will maintain insurance on said fire engine(s). Proof of Insurance is to be provided to the COUNTY.
The COUNTY will ensure a working fire engine(s) is available for the CITY at all times under this agreement. All capital improvements and/or betterments to the fire engine(s) listed above, will be the responsibility and paid for by the owner of said fire engine(s). All other maintenance and repairs to the fire engine(s) listed above, will be the responsibility and paid for by the COUNTY under this Agreement.
When the Riverside County Fire Department Fleet personnel determine the fire engine(s) listed above is due for replacement, the COUNTY will purchase a new fire 722
FY24/25 Exhibit “C”
CITY OF WILDOMAR
July 1, 2024 – June 30, 2027
engine(s); and, the owner of the old fire engine(s) may survey said fire engine(s) or reallocate as a second roll response fire engine.
The annual cost for this service is calculated at 1/20 of the replacement cost. The current replacement cost is $725,000. If this Agreement is entered into midyear, the annual cost will be prorated accordingly. Replacement cost is subject to change based on current Type I Fire Engine cost. See each respective fiscal year’s Exhibit “A” for current Fire Engine Use Agreement costs.
The CITY may opt out of this Agreement at any time in writing and the costs will be prorated accordingly by fiscal year. No refunds will be provided for any prior payments. If the fire engine(s) have been titled to the COUNTY and the fire engine(s) are still within their useful life cycle, the ownership will not revert back to the CITY unless the entire Cooperative Agreement is terminated.
723
Exhibit “D”
CITY OF WILDOMAR
July 1, 2024 – June 30, 2027
EXHIBIT “D”
TO THE COOPERATIVE AGREEMENT
TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, FIRE MARSHAL, RESCUE
AND MEDICAL EMERGENCY SERVICES FOR THE CITY OF WILDOMAR DATED JULY 1, 2024
PAYMENT FOR ADDITIONAL SERVICES
OFFICE OF THE FIRE MARSHAL AGREEMENT
The Fire Marshal Agreement is utilized in the event a CITY elects to fund locally direct COUNTY Fire Marshal personnel at the CITY to perform the duties of the Office of the Fire Marshal. These duties include:
For conformance with applicable laws, codes and regulations concerning fire protection and life safety -
Review Planning and Development Cases for the CITY
Review and inspection of construction development for the CITY State mandated Fire/Life Safety Inspections in accordance with Health and Safety Code 13146.1, 13146.2, 13146.3, 13217 and 13235
Review, Permitting and Inspection of Special Events
Investigation of fire safety complaints
Meeting with development applicants and customers
Fire Life Safety Inspections of State Regulated Occupancies and Annual Business Inspections.
Weed abatement of all vacant parcels.
Administrative activities -
Creation and maintenance of forms for review and inspection of construction development and fire/life safety inspections.
Provide information to customers on CITY Ordinances and Standards for construction
Creation and maintenance of Information Bulletins, Technical Policies and Standards for Fire Protection in the CITY
Provide recommendations on updating CITY Ordinances and Standards in regards to fire/life safety
In the event CITY desires an increase in the Office of the Fire Marshal duties services provides, CITY shall provide sixty (60) days written notice of the proposed increase in services. COUNTY is under no obligation to approve any requested increase.
COUNTY shall render a written decision on whether to allow or deny the increase within thirty (30) days of the notice provided pursuant to this section. 724
Exhibit “D”
CITY OF WILDOMAR
July 1, 2024 – June 30, 2027
It is the CITY responsibility to provide funding for all direct operating supplies for each position in accordance with COUNTY requirements and/or standards. These supplies include, but are not limited to:
Vehicle and regular maintenance
Training
Office space, furniture, Code & Standard reference books, and general & field supplies
All IT and Communication tools (such as cell phone, computer, etc.) Uniform costs
All costs including salaries and benefits will be included in each quarterly invoice as outlined in the Cooperative Agreement.
The CITY may opt out of this Exhibit and eliminate funding for locally direct COUNTY Fire Marshal personnel at the CITY in writing with a minimum notice of one hundred and twenty (120) days. The costs will be prorated accordingly by services provided and fiscal year.
It is the responsibility of the CITY to obtain cost recovery for the Fire Marshal services provided by these personnel for the CITY.
F:\data\RRU County Finance\Contract Cities\EXHIBIT D ~ Fire Marshal Services\FY 2024-2025\Exhibit D - Wildomar 20240701.docx 725
The Riverside County Fire Department is dedicated to protecting life, property and the environment through professionalism, integrity, and efficiency.
CAL FIRE / Riverside County Fire
Cooperative- Integrated - Regionalized Fire Protection
726
Fire Apparatus:
• 1 Fire Engine (use agreement)
• 1 Medic Squad (city owned)
Staffing: 14 total personnel Fire Suppression:
• Battalion Chief Coverage
• 3 Fire Captains
• 4 Engineers
• 1 Engineer Paramedic
• 5 Firefighter Paramedics Fire Prevention
• 1 Fire Safety Supervisor
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Fire Contract
Regional Integrated
Cooperative Fire Protection
7 Fire Stations, 5 Fire Engines, 1 Ladder Truck, 2 Wildland Engines, 2 Medic Squads, 31 Firefighters, 2 Chiefs
728
• Resiliency & surge capacity
• Cover behind
• Economies of scale
• County assets: 83 municipal fire engines, 9 Brush engines, 8 Ladder trucks,18 Squads/ Patrols, Hazmat unit, 4 Breathing supports, Utility trucks, Dozer, reserve squads, 3 Com / incident support units, 32 Chief officers.
• State assets: 17 fire engines, 3 planes, 1 helicopter, 3 bull dozers, 19 fire crews, 24 chief officers • Admin , HR, hiring, cost recovery, supplies and equipment, IT, 911 Dispatch, PIO, Arson team. • Oversite of EMS, training, health & safety programs.
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2023 Response time comparison: Station 61= 4.7 minutes vs. City of Wildomar = 5.1 minutes
730
BENEFITS OF FIRE AND LIFE SAFETY INSPECTION PROGRAM
• Risk reduction
• Compliance assurance
• Early detection of hazards
• Employee and citizen safety
• Emergency preparedness
• Possible insurance
reduction
• Reduce new business costs
Average cost range from $260- $800 depending on the size of the facility. Revenue with offset costs of growing fire marshal office demands Overall, fire and life safety inspections are crucial for ensuring the well-being of businesses, employees, customers, and the community at large, while also protecting assets and reputation.
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ANNUAL FIRE AND LIFE SAFETY BUSINESS INSPECTIONS
Addressing Knox System Fire Access Hydrants,
PIV’s, FDC’s
Sprinkler
Systems &
Maintenance
Fire Alarm
Systems &
Maintenance
Kitchen Hood
Extinguishing
&
Exhaust Systems
Emergency
Information
Exit Signs
&
Emergency Lighting
Exiting Fire Rated
Construction Electrical
Ignition
Sources
Interior
Combustible
Storage
Outside
Combustible
Storage
Gas Cylinders Hazardous
Materials
Combustible
Decorative
Materials
732
The Fire Contract
Overview & Changes
733
• Covers 666 acres • FY23/24 $27,191 • FY24/25 $31,789 • Immediate dispatch of:
• Aircraft
• Hand Crews
• Bull Dozers
• Brush Engines
• Local high dispatch:
• 1 Battalion Chief
• 3 Fire Engines
• State high dispatch: • 2 Battalion Chiefs
• 10 Engines
• 4 Hand Crews
• 2 Bulldozers
• 1 AGTS (airplane)
• 2 Air Tankers
(airplanes)
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• CALFIRE sends estimates at top-step for Fire Suppression personnel cost.
• Actual personnel billing is based on MOU and staff-benefit rates negotiated at state level.
• 11/1/24 72-hour week to a 66- hour week, to one 24-hour day reduction per work period.
• CAL HR and Union in active negotiation for final MOU
• FSLA overtime
• Time Off
• Benefits
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Shift Patterns Current CAL FIRE; three 24 hr. days
(72 on, 96 off)
Majority of surrounding LG FD’s; two
24 hr. days (48 on, 96 off) RIV, MUR,
CLK
CAL FIRE Transitioning from 72-hour
duty week to 66 hour.
Future 56 hour for CAL FIRE?
• Studies show firefighter fatigue leads to
increase injuries and poor decision making
• Improved recruitment and retention
736
• Increase in funded personal to fill open days of new 66 hr. (2 additional staff) • Fire Apparatus Engineer
• Firefighter
• $443k
• Battalion Chief moved to cost allocation.
• Wildland agreement.
• CAL PERS single year reduction.
• Final 66-hour duty week Labor agreement?
• State budget May revise
• Discontinue dual PCA coding in FY24/25.
• Future planning EMS Transport and 56-hour work week.
• Wildomar Cooperative fire protection contract renewal. • Recommended 3-year contract
737
738
Fire Department
Strategic Plan
739
RESPONSE TIME SERVICE LEVEL STANDARDS
Fire and Medical Emergency Response time standards will be based on the response categories of Urban, Suburban, Rural, and Outlying.
Response Category Population General Description
Urban
An area with a population density
greater than 1,000 persons per square
mile.
Residential, Commercial, Industrial
Suburban An area with a population density of
500 - 1,000 persons per square mile.
Residential, Light Commercial, Light
Industrial
Rural An area with a population density of
100 – 500 persons per square mile. Residential, Agricultural Outlying An area with a population density less
than 100 persons per square mile. Residential, Open Space 740
CODE 3 MEDICAL EMERGENCY FIRST DUE UNIT
Response Category Travel Time
Urban 4:00
Suburban 6:00
Rural 8:00
Outlying 15:00
2020 U.S. Census data
shows Wildomar has 1555
population density per
square mile.
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CALL THRESHOLD
• 3066 calls per fire unit
Firefighter workload
Public safety
Call overlap
742
Fire station relocations Future city fire station needs Resource allocation Future Improvements & Planning: Additional Station $12M (2030- 32)
2nd Engine $1.1M ( 2030-
32)
FS68 Staffing $1.5M FS 61 relocation $12M Replacement Squad $350k (2027)
Ladder Truck $3M Staffing: $3M
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COMMUNITY RISK
REDUCTION
Risk Assessment and Planning: Conducting thorough risk assessments allows fire department to identify areas of high fire risk within the community.
Fire Prevention Education: Community engagement, Media, Signage. Fire and Life safety inspections
744
745
CITY OF WILDOMAR
CC - REGULAR MEETING
GENERAL BUSINESS
Agenda Staff Report # 3.3
Meeting Date: May 8, 2024
SUBJECT: Illegal Food Vending Discussion (Future Agenda Item) SUBMITTED BY: Matthew Bassi, Community Development Director PREPARED BY: Matthew Bassi, Community Development Director ACTION:
Receive and File with Council Discussion
SUMMARY:
Mayor Pro Tem DePhillippo recently requested that a future agenda item be placed on the May 8, 2024 agenda so Council could discuss the subject of Illegal Food Vending. Code Enforcement Manager Berroteran will provide a brief verbal presentation on the Code team's current approach related to illegal food vending. This will be followed up by a brief verbal presentation by City Attorney Jex on legal limitations agencies face related to this topic.
Staff recommends Council discussion on this topic and provide any direction if desired by the Council.
FISCAL IMPACT:
This is only a discussion item to receive general direction from the Council about how to proceed. Therefore, it presents no fiscal impact at this time. 746
CITY OF WILDOMAR
CC - REGULAR MEETING
FUTURE AGENDA ITEMS
Meeting Date: May 8, 2024
SUBJECT: Future Agenda Items
SUBMITTED BY: Janet Morales
ACTION:
Title- Councilmember-Anticipated Date
1. Discuss Rural Roads and Rural Roads Standards - Marquez - May 2024
2. Illegal Food Vendor Ordinance - DePhillippo - May 2024 747
CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 1.1
Meeting Date: May 8, 2024
SUBJECT: February 14, 2024 - City Council/ Cemetery Regular Minutes SUBMITTED BY: Janet Morales, City Clerk
ACTION:
Approve the minutes as presented.
ATTACHMENTS:
1. Minutes
748
MINUTES
CITY OF WILDOMAR
CITY COUNCIL/CEMETERY DISTRICT
WEDNESDAY, FEBRUARY 14, 2024
COUNCIL CHAMBERS
23873 CLINTON KEITH ROAD SUITE 106
WILDOMAR, CA, 92595
Closed Session: 5:30 PM | Regular Session 6:00 PM
CALL TO ORDER – CLOSED SESSION - 5:30 P.M.
The Regular Closed Session was called to order by Mayor Moore at 5:31 p.m.
ROLL CALL
Members in attendance: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, and Carlos Marquez Members absent: Dustin Nigg
PUBLIC COMMENTS
There were no public comments.
CLOSED SESSION
CLOSED SESSION
1. The City Council will meet in closed session pursuant to the provisions of Government Code section 54956.8 to confer with legal counsel and conference with real property negotiator as follows:
Project: Clinton Keith Street Widening Project (CIP 025) Property: See below
Agency negotiators: Dan York
Negotiating parties: See below
Under negotiation: Instruction regarding price and terms of payment APN | OWNER | ADDRESS
1. 376-410-021 | Damas Clinton Keith LLC | 24850/23980 Catt Road
2. 362-250-027 | Malak Hanna and Amira Girgis | NW corner of Iodine Springs/Clinton Keith
3. 362-250-031 | Angel Realty Investments, LLC | 35980 Iodine Springs Road
4. 362-250-019 | Robert C. Benecke and Sheila Benecke | N side of Clinton Keith at Inland Valley
5. 362-250-025 | Malak Ghobrial Hanna and Joseph Zakhary | N side of Clinton Keith at Inland Valley
6. 362-250-015 | Michael A. Kaner and Jamie P. Kaner | 24500 Catt Road
7. 380-250-002 | Johnson Family Trust | SW corner of Clinton Keith/Inland Valley
8. 380-250-046 | Keith Strata | S side of Clinton Keith at Salida Del Sol
9. 362-150-026 | Mt. San Jacinto Community College District | NE Corner of Clinton Keith/ Salida Del Sol
10. 380-250-004 | SPSSM Investments-LX, LP | 24671 Clinton Keith Road
11. 380-250-005 | Max and Jocelyn Lin | 24675 Clinton Keith Road
12. 380-520-001 | White Sable LLC; Wildomar One LLC | SW corner of Clinton Keith/Elizabeth
13. 380-290-002 | Jay Hariz | 24831 Clinton Keith Road
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14. 380-290-008 | Joseph Kasiri Trust | 36030 Jana Lane
15. 380-300-008 | Kenneth and Barbara Thomas | 25041 Clinton Keith Road
16. 362-620-022 | Oakmont II Community Association | N side of Clinton Keith, E of Carrrington St.
17. 362-180-043 | Western Riverside Regional Conservation Agency | N side of Clinton Keith, btwn Carrington St. and Copper Craft Dr.
2. The City Council will meet in closed session pursuant to the provisions of Government code section 54956.9 (d)(1) to confer with legal counsel with regard to the following matter of pending litigation:
American National Property and Casualty Company v. City of Wildomar, et al; Case Number:
CVSW2309974
The City Council convened into Closed Session at 5:31 p.m.
RECONVENE INTO OPEN SESSION
The City Council reconvened into open session at 6:00 p.m. with all members present except Councilmember Nigg.
ANNOUNCEMENTS
City Attorney Jex stated that in regards to item #1 on the closed session agenda, there was not reportable action. In regards to closed session agenda item #2, the City Council voted 4-0 to defend the litigation.
ADJOURN CLOSED SESSION
There being no further business, Mayor Moore adjourned the Closed Session at 6:00 p.m.
CALL TO ORDER – REGULAR SESSION - 6:00 P.M.
The Regular Meeting of the Wildomar City Council was called to order by Mayor Moore at 6:00 p.m.
ROLL CALL
Members in attendance: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, and Carlos Marquez Members absent: Dustin Nigg
Staff in attendance: City Manager York, City Attorney Jex, City Clerk Morales, Community Development Director Bassi, Economic Development Director Davidson, Administrative Services Director Schrader, Community Services Director Torres, Finance Manager Jantz, Code Enforcement Manager Berroteran, Code Enforcement Supervisor Parker, Human Resources/Risk Manager Wolf, Associate Engineer Luna and Senior Planning Lachgar.
It was the consensus of the City Council to excuse Councilmember Nigg's absence.
FLAG SALUTE
The flag salute was led by Eagle Scout Galvan.
PRESENTATIONS
1. Proclamation: Eagle Scouts Ryan Michael Galvan and Zackary Zander
2. Proclamation: Rare Disease Day
DEPARTMENT REPORTS
Fire Department Quarterly Update
Wildomar Library Quarterly Update
General Plan Update Progress Report #20
750
Public Works/Engineering - Road Construction Updates
Code Enforcement Quarterly Update (2023)
PUBLIC COMMENTS
The following individuals provided public comment on items not on the agenda:
1. Desare Ferraro on behalf of Assemblywoman Kate Sanchez
2. Daryl Terrell, Moreno Valley Resident
3. Diana Autumn, Resident
4. Rosalba Valdovinos, Resident
5. Andy Morris, Wildomar Insurance
COUNCIL COMMUNICATIONS
The City Council members spoke regarding various committees, comm1ss1ons, and boards that they serve on locally and regionally and community events including:
1. Riverside Conservation Authority (RCA)
2. Riverside Transit Agency (RTA)
3. Riverside County Transportation Commission (RCTC)
4 League of California Cities
5. Southern California Association of Governments (SCAG)
6. Riverside County Habitat Conservation Agency (RCHCA)
7. Western Riverside Council of Governments (WRCOG)
8. Southwest Community Financing Authority (Animal Shelter)
9. Ad Hoc & Subcommittees
10. Community events
11. Regional events
12. Chamber of Commerce
APPROVAL OF THE AGENDA AS PRESENTED
Moved by Carlos Marquez; seconded by Joseph Morabito to approve Approve the agenda as presented.
Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
1) CONSENT CALENDAR
Veronica Langworthy, resident, provided public comment on Agenda Items 1.7 (In opposition), 1.8 and
1.19 (In opposition).
Moved by Joseph Morabito; seconded by Carlos Marquez to approve the Consent Calendar.
Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
1.1) Reading of Ordinances
Approved the reading by title only of all Ordinances on this agenda.
1.2) City Council/Cemetery District Minutes - November 8, 2023.
Approved the minutes as presented.
751
1.3) January 2024 Warrant Register
Approved the following:
For Fiscal Year 2023/2024
1. Warrant Register dated 01-04-2023 in the amount of $194,224.22
2. Warrant Register dated 01-11-2023 in the amount of $196,755.25
3. Warrant Register dated 01-18-2023 in the amount of $3,115,302.15
4. Warrant Register(s) dated 01-22-2023 in the amount of $4,311.42
5. Warrant Register dated 01-23-2023 in the amount of $4,840.14
6. Warrant Register dated 01-25-2023 in the amount of $465,174.76
7. Wire Transfer Register dated 01-31-2024 in the amount of $175,575.85
8. Payroll Register dated 02-01-2024 in the amount of $341,975.35
1.4) December 2023 City Treasurers Report
Approved the Treasurer’s Report for December 2023.
1.5) 2nd Reading of Ordinance No. 236 for the Adoption of the Abandoned Vehicle Abatement Program
Adopted an Ordinance entitled:
ORDINANCE NO. 236
AN ORDINANCE OF THE CITY COUNCIL OF CITY OF WILDOMAR, CALIFORNIA, AMENDING SECTIONS
10.04.020, 10.04.030, 10.04.050, AND 10.04.070 OF THE WILDOMAR MUNICIPAL CODE,
REGARDING ABANDONED VEHICLES - ENFORCEMENT AND ABATEMENT
1.6) 2nd Reading of Ordinance No. 237, Wildomar Council Salary Ordinance Adopted an Ordinance entitled:
ORDINANCE NO. 237
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, AMENDING SECTION 2.04.040 OF THE WILDOMAR MUNICIPAL CODE TO ADJUST THE SALARIES OF THE
COUNCILMEMBERS IN ACCORDANCE WITH CALIFORNIA LAW
1.7) Adoption of Revised FY2022-23 GANN Limit
Adopted a Resolution entitled:
RESOLUTION NO. 2024 - 05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, APPROVING THE REVISED APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022-23
1.8) FY2022-23 Annual Development Impact Fee Report
Received and filed the Annual report for the Development Impact Fees for the Fiscal Year Ending June 30th, 2023.
1.9) Revised Elected Official and City Staff Travel and Expense Policies Adopted a Resolution entitled:
RESOLUTION NO. 2024 - 06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, REVISING THE
CITY'S ELECTED OFFICIAL TRAVEL AND EXPENSE POLICY AND CITY STAFF TRAVEL AND EXPENSE POLICY
1.10) Clinton Keith and Stable Lanes Mass Grading Agreement Authorized the City Manager to execute the Mass Grading Agreement with Stable Lanes Village, LP (Developer).
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1.11) Updates to Position Classification Descriptions, Revising Position Classification Schedule, and Adopting a New Pay Plan
Adopted a Resolution entitled:
RESOLUTION NO. 2024 - 07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, APPROVING THE
MAINTENANCE MANAGER AND THE ENGINEERING DIVISION MANAGER CLASSIFICATION DESCRIPTIONS; AUTHORIZING THE CITY MANAGER TO AMEND FUTURE CLASSIFICATION
DESCRIPTIONS, REQUIRING A PROFESSIONAL CIVIL ENGINEER LICENSE FOR THE SENIOR ENGINEER CLASSIFICATION; REVISING THE POSITION CLASSIFICATION SCHEDULE TO INCLUDE THE
MAINTENANCE MANAGER AND THE ENGINEERING DIVISION MANAGER CLASSIFICATIONS AND
DESIGNATE SENIOR ENGINEER, SENIOR ACCOUNTANT AND SENIOR PLANNER CLASSIFICATIONS AS EXEMPT; AND AMENDING THE EXISTING PAY PLAN
1.12) Tri-Party Consultant Service Agreement for the Sycamore Academy Charter School Expansion Project Mitigated Negative Declaration (PA No. 24-0003)
1. Authorized the City Manager to execute a Tri-Party Consultant Services Agreement (Attachment A) between the City of Wildomar, Sycamore Academy Charter School and PlaceWorks, Inc. for preparation of a Mitigated Negative Declaration for the Sycamore Academy Charter School Expansion project; and
2. Authorized the City Manager to execute a Consultant Services Agreement/Contract between the City of Wildomar and PlaceWorks, Inc. for preparation of a Mitigated Negative Declaration for the Sycamore Academy Charter School Expansion project.
1.13) Clinton Keith Road Widening Project (CIP 025) - Right-of-Way Acquisition Adopted a resolution entitled:
RESOLUTION 2024 - 08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR CALIFORNIA AUTHORIZING THE
CITY MANAGER TO EXECUTE PURCHASE AND SALE AGREEMENTS AND OTHER RELATED DOCUMENTS
FOR AQUISITION OF REAL PROPERTY REQUIRED FOR THE CLINTON KEITH ROAD WIDENING PROJECT (CIP 025)
1.14) 2nd Amendment to the Professional Services Agreement with PlaceWorks, Inc. for the General Plan Update Project
1. Authorized the City Manager to execute the second amendment to the Professional Services Agreement between the City of Wildomar and PlaceWorks, Inc. for General Plan Update to extend the agreement to February 22, 2026 (Attachment A); and
2. Appropriated an additional $95,000 to revenue account 280-3540 and approve a supplemental appropriation of $95,000 to account 280-430-4320-52115 to support the revised scope of work and assignments provided in Attachment A, Exhibit 1.
1.15) Amendment #3 to the Professional Services Agreement between City of Wildomar and PlaceWorks, Inc.
Authorized the City Manager to execute the 3rd amendment to the Professional Services Agreement between the City of Wildomar and PlaceWorks, Inc. for continued On-Call Planning Support Services.
1.16) Amendment #1 to the Professional Services Agreement between City of Wildomar and Architerra Design Group, Inc.
Authorized the City Manager to execute the 1st amendment to the Professional Services Agreement between the City of Wildomar and Architerra Design Group, Inc.
1.17) Memorandum of Understanding to Electronically Record Documents through the use of the Statewide Electronic Courier Universal Recording Environment (SECURE) using the Government to Government (G2G) Portal
753
Authorized the City Manager to execute the Memorandum of Understanding (MOU) between the Owner Counties (Los Angeles, Orange, Riverside and San Diego) and the City of Wildomar for the use of the SECURE G2G Portal to Electronically Record Documents.
1.18) Fourth Amendment to Professional Services Agreement with Interwest Consulting Group, Inc. for On-Call / Staff Augmentation Services – Building and Safety Authorized the City Manager to execute the Fourth Amendment to the Professional Services Agreement with Interwest Consulting Group, Inc. for On-Call / Staff Augmentation Services – Building and Safety.
1.19) Contract Contingency Adjustment - CIP 057-2/058-2 (Road Rehab and Slurry Seal Projects) Authorized the Public Works Director to approve final change orders not to exceed 25% of the construction contract amount (contingency) for the Road Rehab and Slurry Seal Projects (CIP 057-2 and CIP 058-2), for a total project construction budget of $4,741,375.70. 2) PUBLIC HEARINGS
2.1) Zoning Ordinance Amendment No. 2023-06 (Fencing)
Senior Planner Lachgar presented the staff report.
Moved by Joseph Morabito; seconded by Ashlee DePhillippo to 1. Determine that Zoning Ordinance Amendment No. 2023-06 meets the findings for a General Rule exemption in accordance with Section 15061(B)(3) of CEQA; and
2. Introduce and Approve for First Reading an Ordinance entitled:
ORDINANCE NO. 238
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, ADOPTING A GENERAL RULE EXEMPTION PER SECTION 15061(B)(3) OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES, AND APPROVING ZONING ORDINANCE AMENDMENT NO. 2023-06 TO AMEND SECTION 17.172.205 (FENCES) OF THE WILDOMAR MUNICIPAL CODE Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
2.2) Consideration of Resolution of Necessity for Condemnation of Vacant Property located at the Southeast Corner of Palomar Street and Cert Street for the Palomar Street Widening Project, Phase 2 (CIP 028-2)
City Attorney Jex presented the staff report.
Moved by Joseph Morabito; seconded by Carlos Marquez to 1. Conduct a public hearing on the proposed Resolution 2024-09 of the City of Wildomar finding and determining that the public interest, convenience, and necessity require the acquisition of certain property for public purposes; and
2. Review the evidence presented, including this staff report and public comments, and close the hearing; and
3. Find that on November 10, 2021, in accordance with the California Environmental Quality Act (CEQA) and State CEQA Guidelines §15070, the Planning Director approved a Notice of Exemption for the Project, and that no additional CEQA findings are required for the Project; and
4. Adopt the Resolution entitled:
754
RESOLUTION NO. 2024 - 09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR FINDING AND DETERMINING
THAT THE PUBLIC INTEREST, CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF
CERTAIN PROPERTY FOR PUBLIC PURPOSES
Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
3) GENERAL BUSINESS
3.1) FY2023-24 Mid-Year Budget Report
Finance Manager Jantz presented the staff report.
Veronica Langworthy, resident, provided public comment.
Moved by Joseph Morabito; seconded by Carlos Marquez to Approve the Fiscal Year 2023-24 MidYear Budget Report, and adopt a Resolution entitled:
RESOLUTION NO. 2024 - 10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, AUTHORIZING ADJUSTMENTS TO THE FY2023-24 BUDGETED REVENUES AND EXPENSES AND ADOPTING A REVISED
SCHEDULE OF AUTHORIZED POSITIONS
Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
3.2) Proposed Revisions to the City Entry Sign Design
Community Services Director Torres presented the staff report.
Moved by Joseph Morabito; seconded by Carlos Marquez to Approve the revisions to the City Entry Sign Design.
Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
3.3) Allocation of Community Development Block Grant (CDBG) Funds for the 2024/2025 CDBG Program Year
Community Development Director Bassi presented the staff report.
Moved by Carlos Marquez; seconded by Ashlee DePhillippo to Adopt a Resolution entitled:
RESOLUTION NO. 2024 - 11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, AUTHORIZING
THE ALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR FISCAL YEAR 2024/2025
Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez 755
Voting Against: None
Abstain: None
Absent: Dustin Nigg
3.4) Illegal Dumping and Administrative Citation Ordinance Amendment City Attorney Jex presented the staff report.
Moved by Carlos Marquez; seconded by Joseph Morabito to
1. Introduce an Ordinance entitled:
ORDINANCE NO. 239
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, AMENDING SECTIONS 9.52.200 AND 1.16.080 OF THE WILDOMAR MUNICIPAL CODE REGARDING ILLEGAL
DUMPING AND ADMINISTRATIVE CITATIONS
2. Find that the ordinance amendment is exempt from CEQA pursuant to Public Resources Code Section 21065 and CEQA Guidelines Section 15378
Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
3.5) Homeless Services Memorandum of Understanding (MOU) with Murrieta City Manager York presented the staff report.
Rosalba Valdovinos, resident, provided public comment.
Moved by Joseph Morabito; seconded by Carlos Marquez to 1) Authorize the City Manager to execute the Memorandum of Understanding with the City of Murrieta as illustrated in Attachment A
2) Approve a supplemental appropriation in the Measure AA fund for FY 2023-24 in the amount of $91,176.45 for Homeless services between Wildomar and Murrieta Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
CITY MANAGER REPORT
City Manager York presented the report.
FUTURE AGENDA ITEMS
There were no future agenda items added.
ADJOURN THE CITY COUNCIL MEETING
There being no further business, Mayor Moore adjourned the City Council Meeting at 8:34 p.m.
CALL TO ORDER THE WILDOMAR CEMETERY DISTRICT
The Regular Meeting of the Wildomar Cemetery District Meeting was called to order by Chair Moore at 8:35 p.m.
756
ROLL CALL
Members in attendance: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, and Carlos Marquez Members absent: Dustin Nigg
PUBLIC COMMENTS
There were no public comments.
BOARD COMMUNICATIONS
There were no board communications.
APPROVAL OF THE AGENDA AS PRESENTED
Moved by Joseph Morabito; seconded by Carlos Marquez to approve the agenda as presented.
Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
4) CEMETERY CONSENT CALENDAR
Moved by Carlos Marquez; seconded by Joseph Morabito to approve the Cemetery Consent Calendar.
Motion Approved: 4 - 0
Voting For: Joseph Morabito, Ashlee DePhillippo, Bridgette Moore, Carlos Marquez Voting Against: None
Abstain: None
Absent: Dustin Nigg
4.1) January 2024 Warrant Register Cemetery
Approved the following:
For Fiscal Year 2023/2024
1. Warrant Register dated 12-07-2023 in the amount of $994.58
2. Warrant Register dated 12-14-2023 in the amount of $2,331.27
3. Warrant Register dated 12-21-2023 in the amount of $6,837.34.
4.2) December 2023 Cemetery Treasurers Report
Approved the Treasurer’s Report for December 2023.
4.3) City Council/Cemetery District Minutes - November 8, 2023.
Approved the minutes as presented.
5) CEMETERY PUBLIC HEARINGS
There were none scheduled.
6) CEMETERY GENERAL BUSINESS
There were none scheduled.
GENERAL MANAGER REPORT
757
There was no general manager report.
FUTURE AGENDA ITEMS
There were no future agenda items added.
ADJOURN THE WILDOMAR CEMETERY DISTRICT MEETING
There being no further business, Chair Moore adjourned the Wildomar Cemetery District Meeting at 7:36 p.m.
Submitted by:
_____________________________
Janet Morales, CMC
City Clerk
758
CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 4.2
Meeting Date: May 8, 2024
SUBJECT: April 2024 Cemetery Warrant Register
SUBMITTED BY: Adam Jantz, Finance Manager
PREPARED BY: Adam Jantz, Finance Manager
ACTION:
Approve the following:
For Fiscal Year 2023/2024:
1. Warrant Register dated 04-04-2024 in the amount of $258.26
2. Warrant Register dated 04-11-2024 in the amount of $217.12
3. Warrant Register dated 04-18-2024 in the amount of $790.69
4. Warrant Register dated 04-25-2024 in the amount of $805.45 SUMMARY:
April 2024 Cemetery Warrant Register
DISCUSSION:
The Wildomar Cemetery District requires that the Trustees audit payments of demands and direct the General Manager to issue checks. The Warrant Registers are submitted for approval.
FISCAL IMPACT:
These Warrant Registers will have a budgetary impact in the amount and fiscal year noted in the recommendation section of this report. These costs are included in the Fiscal Year 2023/24 Budget.
ATTACHMENTS:
April 2024 Cemetery Warrant Register.pdf
759
04/04/2024
Voucher List
City of Wildomar
1 10:27:37AM
Page:
Bank code : wf
Voucher Date Vendor Invoice PO # Description/Account Amount 218098 4/4/2024 000367 CINTAS CORPORATION 9265924922 SD EYEWASH SERVICE AGREEMENT 141.38 Total : 141.38
218099 4/4/2024 001720 STERICYCLE, INC 8006632776B CONTRACTUAL SHREDDING SVC 116.88 Total : 116.88
2 Vouchers for bank code : wf Bank total : 258.26
2 Vouchers in this report Total vouchers : 258.26
760
04/11/2024
Voucher List
City of Wildomar
1 4:21:30PM
Page:
Bank code : wf
Voucher Date Vendor Invoice PO # Description/Account Amount 218124 4/11/2024 000048 MURRIETA LOCK AND SAFE, INC. 11217 LOCK REPAIR 217.12 Total : 217.12
1 Vouchers for bank code : wf Bank total : 217.12
1 Vouchers in this report Total vouchers : 217.12
761
04/18/2024
Voucher List
City of Wildomar
1 2:22:12PM
Page:
Bank code : wf
Voucher Date Vendor Invoice PO # Description/Account Amount 218158 4/18/2024 000367 CINTAS CORPORATION 189702792 STAFF UNIFORM & TOWEL MAINTENANCE 141.74 4187528446 STAFF UNIFORM & TOWEL MAINTENANCE 104.38
4188323328 STAFF UNIFORM & TOWEL MAINTENANCE 104.38
4188997205 STAFF UNIFORM & TOWEL MAINTENANCE 104.38
Total : 454.88
218159 4/18/2024 001338 DEANZA TERMITE & PEST CONTROL, INC645875B PEST CONTROL CEMETERY (04/10/24) 27.50 Total : 27.50
218160 4/18/2024 000012 ELSINORE VALLEY MUNICIPAL, WATER DISTRICT 12894822 02/16/24-03/17/24 CEMETERY WATER
SERVICE
233.31
Total : 233.31
218161 4/18/2024 002082 MAIN SAIL PEST CONTROL 62402 PEST CONTROL SERVICES 75.00 Total : 75.00
4 Vouchers for bank code : wf Bank total : 790.69
4 Vouchers in this report Total vouchers : 790.69
762
04/25/2024
Voucher List
City of Wildomar
1 3:08:45PM
Page:
Bank code : wf
Voucher Date Vendor Invoice PO # Description/Account Amount 218183 4/25/2024 001692 AMAZON CAPITAL SERVICES 41624 CEMETERY DEPT SUPPLIES 195.47 Total : 195.47
218184 4/25/2024 000367 CINTAS CORPORATION 4178257500 STAFF UNIFORM & TOWEL MAINTENANCE 139.74 4190439669 STAFF UNIFORM & TOWEL MAINTENANCE 141.74
Total : 281.48
218185 4/25/2024 000790 SPARKLETTS 18075184-042024 CEMETERY DRINKING WATER THROUGH 04/20/24
57.95 Total : 57.95
218186 4/25/2024 000094 STAUFFERS LAWN EQUIPMENT 359908 FIRST AID/SAFETY GLASSES 21.40 Total : 21.40
218187 4/25/2024 002214 UNITED STAFFING ASSOCIATES LLC 23611 CONTRACTUAL SERVICES W/E 4/21/24 249.15 Total : 249.15
5 Vouchers for bank code : wf Bank total : 805.45
5 Vouchers in this report Total vouchers : 805.45
763
CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 4.3
Meeting Date: May 8, 2024
SUBJECT: March 2024 Cemetery Treasurer's Report
SUBMITTED BY: Adam Jantz, Finance Manager
PREPARED BY: Adam Jantz, Finance Manager
ACTION:
Approve the Treasurer’s Report for March 2024.
SUMMARY:
March 2024 Cemetery Treasurer's Report
DISCUSSION:
Attached is the Treasurer’s Report for Cash and Investments for the month of March 2024.
FISCAL IMPACT:
This is only a report of balances for the Cemetery, therefore it has no fiscal impact.
ACCOUNT CODE:
300-1011
301-1011
ATTACHMENTS:
March 2024 Cemetery Treasurer's Report
764
PERCENT
OF DAYS STATED
FUND BOOK VALUE FACE VALUE MARKET VALUE PORTFOLIO TO MAT. RATE 301 $ 420,100.37 $ 420,100.37 $ 420,100.37 28.81% 0 5.480% 300 $ 1,034,262.01 $ 1,034,262.01 $ 1,038,145.99 71.19% 840 5.110% $ 1,454,362.38 $ 1,454,362.38 $ 1,458,246.36 100.00%
+ + WITHDRAWALS/
BEGINNING DEPOSITS/ INTEREST SALES/ ENDING STATED
FUND BALANCE PURCHASES DEPOSITED MATURITIES BALANCE RATE 301 $ 418,236.94 $ - $ 1,863.43 $ $ 420,100.37 5.480% - 300 $ 1,029,908.89 $ - $ 4,353.12 $ $ 1,034,262.01 5.110% - TOTAL $ 1,448,145.83 $ - $ 6,216.55 $ - $ 1,454,362.38
WILDOMAR CEMETERY DISTRICT
TREASURER'S REPORT FOR
CASH AND INVESTMENT PORTFOLIO
March 2024
DISTRICT INVESTMENT
ISSUER
ISSUER
TOTAL
CAMP POOL
CAMP MANAGED ACCOUNT
CAMP POOL
CAMP MANAGED ACCOUNT
City Treasurer
In compliance with the California Code Section 53646, as City Treasurer for the Wildomar Cemetery District, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the District's expenditure requirements for the next six months.
I also certify that this report reflects all Government Agency pooled investments and all of the District's Bank Balances.
Heidi Schrader 4/22/2024
Heidi Schrader Date
765
CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 4.4
Meeting Date: May 8, 2024
SUBJECT: Acceptance of FY2022-23 Annual Comprehensive Financial Report
SUBMITTED BY: Adam Jantz, Finance Manager
PREPARED BY: Adam Jantz, Finance Manager
ACTION:
Receive and file the FY2022-23 Wildomar Cemetery District Audited Financial Statement SUMMARY:
Acceptance of FY2022-23 Wildomar Cemetery District Audited Financial Report DISCUSSION:
The firm of Rogers, Anderson, Malody & Scott LLP performed the annual financial audit of the City of Wildomar and prepared the Independent Auditor's Report for the Wildomar Cemetery District
This audit is required to be performed in accordance with Generally Accepted Accounting Standards and Government Auditing Standards. At the end of the audit test work, the audit firm issues an opinion as to the fairness of presentation of the financial position of the City.
The following statement was issued by the auditors in their Independent Auditor's Report under Opinions:
"In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America."
This signifies that the District received a clean opinion on its financial statements.
Some highlights from the audit report are:
The balance of the Cemetery General Fund (Fund 300) on June 30, 2023, was $1,042,838 in total. This represents 137% of the Cemetery General Fund operating expenditures in fiscal year 2022-23.
The Cemetery Endowment Fund (Fund 301) brought in $127,763 in endowment fees and earned $6,336 in interest year. The fund balance on June 30, 2023, was $423,267. 766
In summary:
1. The FY 2022 and 2023 audits were delayed due to staff turnover in the Administrative Services Department
2. The audit reports indicate a clean opinion of the City's financial statements.
FISCAL IMPACT:
This is only for acceptance of the audited financial report for FY2022-23 and does not convey any appropriations or budget adjustments. Therefore, this item does not present any direct fiscal impact.
ACCOUNT CODE:
300
301
302
ATTACHMENTS:
FY2023 Cemetery District Financial Statement.pdf
Wildomar Cemetery District 2023 SAS 114 Post Audit Letter.pdf 767
WILDOMAR CEMETERY DISTRICT
A SUBSIDIARY DISTRICT
OF THE CITY OF WILDOMAR
FINANCIAL STATEMENTS
For the year ended June 30, 2023
Prepared By:
The City of Wildomar
Finance Department
768
Wildomar Cemetery District
Financial Statements
June 30, 2023
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 .............................................................................................. 11 Statement of Activities .................................................................................................... 12 Fund Financial Statements
Balance Sheet – Governmental Funds .......................................................................... 13 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................... 14 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ........................................................................................... 15 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........... 16 Notes to Financial Statements ....................................................................................... 17 Required Supplementary Information:
Notes to Required Supplementary Information .................................................................... 39 Budgetary Comparison Schedule – General Fund .............................................................. 40 Schedule of the District’s Proportionate Share of Net Pension Liability ............................... 41 Schedule of Contributions .................................................................................................... 42 Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Capital Projects Fund ................................................................... 43 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Endowment Fund .......................................................................... 44 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 ................................................................................... 45 769
-1-
Independent Auditor’s Report
President and Board of Trustee Members
Wildomar Cemetery District
Wildomar, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of the Wildomar Cemetery District (the District), a component unit of the City of Wildomar, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the financial statements present only the Cemetery District, do not purport to, and do not present the financial position of the City of Wildomar, California, as of June 30, 2023, or the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter.
770
-2-
As discussed in Note 1 to the financial statements, the District has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements, for the year ended June 30, 2023. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements The District’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’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 District’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 the District’s ability to continue as a going concern for a reasonable period of time.
771
-3-
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for 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 auditing standards generally accepted in the United States of America, 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 District’s basic financial statements. The supplementary information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The budgetary comparison 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the 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 auditing standards generally accepted in the United States of America. In our opinion, the 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 20, 2024 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.
San Bernardino, California
March 20, 2024
772
Wildomar Cemetery District
Management’s Discussion and Analysis
For the year ended June 30, 2023
-4-
As management of the Wildomar Cemetery District (the District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2023. We encourage the reader to consider the information presented here in conjunction with the District’s financial statements which follow this discussion.
THE FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the Districtexceeded its liabilities and deferred inflows of resources as of June 30, 2023, by $2.3 million (net position). The District’s total net position increased by $157,711. The primary reasons for the decrease are as follows:
o Assets – Capital assets are lower by $49,825 due to a decrease in right-to-use assets under GASB 87, Leases.
o Deferred Inflows and Outflows of Resources – Deferred pension-related items decreased by a net of $50,742 due to actuarial calculation changes in fiscal year 2022/23.
o Liabilities – Other liabilities are lower by $125,130 due to timing of increased preneed sales.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements. These basic financial statements are comprised of three components:
1) Government-wide financial statements,
2) Fund financial statements, and
3) Notes to the financial statements.
This report also contains required supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements
As previously discussed, government-wide financial statements detail all capital assets, including infrastructure, depreciation, and long-term debt. Specifically, these statements are designed to provide an expansive overview of the District’s finances. Given its scope and to adequately present this data in a comprehensible format, the government-wide financial statements are divided into two subcategories, the Statement of Net Position and the Statement of Activities.
These statements reasonably provide long and short-term information regarding the District’s financial condition.
773
Wildomar Cemetery District
Management’s Discussion and Analysis
For the year ended June 30, 2023
-5-
The District’s statements provide a manageable yet comprehensive view of the District’s economic position, appropriately accounting for all revenue and expenses during the specified fiscal year. To accomplish this, government-wide financial statements are reported utilizing the flow of economic resources (cost of services) measurement focus and the accrual method of accounting. Using the flow of economic resources measurement focus allows the District to provide financial transparency insofar as all assets, deferred outflows of resources, liabilities, and deferred inflows of resources are listed on the Statement of Net Position. The added use of the accrual basis of accounting allows the District a ‘real-time’ advantage as revenues are recognized when earned and expenses are recognized when incurred.
The Statement of Net Position outlines the District’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. While fluctuations are expected, over time increases or decreases in the District’s net position could be used to gauge the District’s financial standing to ascertain whether it is improving or deteriorating.
The Statement of Activities demonstrates how the District’s net position evolves during the current fiscal year. Specifically, this statement provides comparative analysis between direct expenses and program revenues for each functional activity of the District. In this format, net position changes are recorded in real time when triggered by underlying events without respect to the timing of the related cash flows. Because of this, it is expected that revenue and expenses for some items (such as uncollected taxes and earned but unused vacation leave) will result in recorded cash flows in future fiscal periods.
Combined, the Statements reveal functions of the District that can be divided into two categories:
1) Governmental activities, and
2) Business-type activities.
Governmental activities are chiefly supported by:
a) Taxes derived from such sources as property tax, and:
b) Charges for services and investment earnings.
Governmental activities of the District are for general government. In addition, the District does not have any business-type activities.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Specifically, these Fund Financial Statements cover segregated groupings of related accounts whose funds have been designated for specific activities or purpose. They provide a detailed accounting of revenue and expenditures, assets, deferred outflows of resources, liabilities, deferred inflows of resources, and remaining fund balances for each fund.
This helps to ensure and demonstrate finance related legal compliance. 774
Wildomar Cemetery District
Management’s Discussion and Analysis
For the year ended June 30, 2023
-6-
Fund financial statements differ from activity reports due to the way capital outlay, depreciation, long-term debt, compensated absences, deferred revenues, and intergovernmental receivables are reported. The impact of these differences is laid out in the notes accompanying the financial statements.
Governmental funds
Governmental funds are reported in essentially the same way as governmental activities in the government-wide financial statements with an exception---governmental fund financial statements focus on near-term inflows and outflows of spendable resources and balances of spendable resources. This means governmental fund financial statements identify current sources and uses of money within the immediate fiscal year. Benefits derived include a detailed short-term view of the District’s general government operations and the basic services it provides, which assist in determining whether there are sufficient financial resources available to meet the District’s current needs.
Since the scope of the governmental funds is different than that of the government- wide financial statements, it is beneficial to comparatively examine information presented for the governmental funds with information presented for governmental activities in the government-wide financial statements.
The reader gains a clearer picture of the long-term impacts current financial decisions might yield.
When examined together, the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances provide the reader with a different snapshot that identifies variances between the two different methodologies of accounting for governmental activities and governmental funds.
The District maintains three individual governmental funds. Information is summarized in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Capital Projects Fund and Endowment Fund. Data from the three governmental funds are combined into a single, aggregated presentation.
The District adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.
Notes to the Basic Financial Statements
The Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
The Notes to the Basic Financial Statements can be found in the Table of Contents under the heading Notes to Financial Statements.
Required Supplementary Information and Supplementary Information In addition to the basic financial statements and included within the notes, this report also presents Required Supplementary Information.
775
Wildomar Cemetery District
Management’s Discussion and Analysis
For the year ended June 30, 2023
-7-
Required supplementary information includes budgetary comparison schedules for the two governmental funds to demonstrate compliance with the annual budget as adopted and amended, miscellaneous plan information and schedule of contributions. Required Supplementary Information can be found following the Notes to the Basic Financial Statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the District, assets and deferred outflows of resources of the District exceeded its liabilities and deferred inflows of resources as of June 30, 2023, by $2.3 million (net position).
During the fiscal year ended June 30, 2023, net position was $2.3 million of which nearly $1.0 million is invested in capital assets such as land, equipment and buildings (net of capital related debt). Of the remaining total, $0.4 million is restricted for endowment care and $0.9 million is unrestricted.
Table 1 – Statement of Net Position – Governmental Activities 2023 2022
Assets:
Current and other assets 1,695,757 $ 1,648,861 $
Capital assets 1,096,999 1,146,824
Total Assets 2,795,685 2,792,756
Deferred outflows of resources:
Deferred pension-related items 89,842 40,875
Total Deferred Outflows of Resources 40,875 89,842
Liabilities:
Other Liabilities 213,545 338,675
Long-term liabilities 372,157 258,991
Total Liabilities 597,666 585,702
Deferred inflows of resources:
Deferred pension-related items 34,873 134,582
Total Deferred Inflows of Resources 134,582 34,873
Net Position:
Net Investment in capital assets 971,384 985,402
Restricted 423,267 289,168
Unrestricted 867,372 829,742
Total Net Position $ 2,104,312 2,262,023 $
Wildomar Cemetery District
Statement of Net Position - Summary
June 30, 2023 and 2022
Governmental Activities
776
Wildomar Cemetery District
Management’s Discussion and Analysis
For the year ended June 30, 2023
-8-
Table 2 – Statement of Activities – Governmental Activities 2023 2022
Revenues:
Program revenues:
Charges for services 218,649 $ 128,683 $
Operating grants and contributions 22,029 35,846
General revenues:
Property taxes 699,784 631,414
Investment earnings 10,185 (17,509)
Total Revenues 778,434 950,647
Expenses:
General government 792,936 942,733
Total Expenses 942,733 792,936
Increase (decrease) in net position (164,299) 157,711
Net position, beginning of year 2,104,312 2,268,611
Net position, end of year $ 2,104,312 2,262,023 $
Governmental Activities
Wildomar Cemetery District
Statement of Activities
For the years ended June 30, 2023 and 2022
During fiscal year 2022/23, the change in net position increased by $157,711 when compared to fiscal year 2021/22. The year over year changes to revenues increased by $172,213, with Property Taxes increasing by $68,370, Charges for Services increasing by $89,966, and Investment Earnings increasing by $27,694. Expenses decreased year over year by $149,797.
Expenses decreased due to decreased administration allocations.
Financial Analysis of Governmental Funds
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance–related legal requirements.
777
Wildomar Cemetery District
Management’s Discussion and Analysis
For the year ended June 30, 2023
-9-
Governmental Funds
As stated, governmental fund financial statements identify current sources and uses of money.
Benefits derived include a detailed short-term view of the District’s general government operations and the basic services it provides, which assists in determining whether there are sufficient financial resources available to meet the District’s current needs.
The financial position of the District’s governmental funds has increased when compared to the previous fiscal year. The total ending fund balance for the District’s governmental funds was $1.5 million which represented a $119,386 increase from the prior fiscal year balance. Most of this increase was related to additional endowment revenues in the current year.
The General Fund is the primary funding source for the District. At fiscal year end, the unassigned fund balance of the general fund was $1.0 million. The General Fund had an excess of expenditures over budgeted amount for capital outlay and debt service.
CAPITAL ASSETS
The District’s net investment in capital assets (Table 3) for its governmental activities as of June 30, 2023 is $1.1 million (net of accumulated depreciation). This investment in capital assets includes land, right-to-use assets, buildings and improvements and furniture and equipment. For more information, please refer to the notes to financial statements. The capital assets of the District are those assets which are used in the performance of the District’s functions.
Depreciation/amortization on capital assets is recognized in the Government-wide financial statements.
Table 3 – Summary of Capital Assets
2023 2022 Change
Governmental activities:
Capital assets, net
Land 963,390 $ 963,390 $ - $
Right-to-use 105,576 147,786 (42,210)
Buildings and improvements 10,492 11,301 (809)
Furniture, fixtures and equipment 17,541 24,347 (6,806) Total $ 1,146,824 1,096,999 $ (49,825) $
Wildomar Cemetery District
Summary of Changes in Capital Assets
June 30, 2023
778
Wildomar Cemetery District
Management’s Discussion and Analysis
For the year ended June 30, 2023
-10-
LONG-TERM LIABILITIES
At year end, the District had $372,157 in outstanding long-term liabilities for Governmental Activities. These liabilities are related to compensated absences and leases payable. See Notes 6, 7 and 8 for additional information.
Table 4 – Summary of Long-Term Liabilities
2023 2022 Change
Governmental activities:
Leases 125,615 $ 161,422 $ (35,807) $
Net pension liability 218,495 135,206 83,289
Compensated absences 28,047 23,374 4,673
Total $ 320,002 372,157 $ 52,155 $
Wildomar Cemetery District
Summary of Changes in Long-term Liabilities
June 30, 2023
ECONOMIC FACTORS AND OUTLOOK FOR FUTURE YEARS
The staff and Board of Trustees serve the residents by keeping the cost of interments down, keeping staffing at minimum levels and performing most work with existing staff.
Key budget assumptions for forecasting General Fund revenues and expenditures include the following:
Increase in property taxes due to increase in valuation. Reduce cost of water consumption.
Effect of the District’s reorganized boundaries
Cemetery Master Plan
The Adopted Operating Budget for Fiscal Year 2022/23 is structurally balanced and attempts to balance accomplishment of the Trustee’s goals and objectives while maintaining financial stability.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Wildomar Cemetery District finances for all those with an interest in the District’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:
Wildomar Cemetery District
Attention: Administrative Services Director
23873 Clinton Keith Road, Suite 201
Wildomar, California 92595
779
Wildomar Cemetery District
Statement of Net Position
June 30, 2023
The accompanying notes are an integral party of these financial statements. -11-
Governmental
Activities
ASSETS
Cash and investments 1,229,400 $
Restricted cash and investments 423,267
Due from other governments 37,530
Inventories 5,560
Capital assets, not being depreciated 963,390
Capital assets, net of depreciation 133,609
Total Assets 2,792,756
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 89,842
Total deferred outflows of resources 89,842
LIABILITIES
Accounts payable 34,909
Accrued liabilities 35,902
Deposits payable - pre-need 142,734
Noncurrent Liabilities:
Due within one year 81,015
Due in more than one year:
Compensated absences 21,035
Leases 51,612
Net pension liability 218,495
Total liabilities 585,702
DEFERRED INFLOWS OF RESOURCES
Pension related items 34,873
Total deferred inflows of resources 34,873
NET POSITION
Net investment in capital assets 971,384
Restricted for:
Endowment care 423,267
Unrestricted 867,372
Total net position 2,262,023 $
780
Wildomar Cemetery District
Statement of Activities
For the year ended June 30, 2023
The accompanying notes are an integral party of these financial statements. -12-
Program revenues Net (expense)
Charges Operating Capital revenue and
for grants and grants and changes in
Expenses services contributions contributions net position Governmental Activities:
General government 792,936 $ 218,649 $ 22,029 $ - $ (552,258) $ Total Governmental
Activities 792,936 $ 218,649 $ 22,029 $ - $ (552,258)
General revenues:
Property taxes 699,784
Investment earnings 10,185
Total general revenues 709,969
Change in net position 157,711
Net position, beginning of year 2,104,312
Net position, end of year 2,262,023 $
781
Wildomar Cemetery District
Balance Sheet
Governmental Funds
June 30, 2023
The accompanying notes are an integral party of these financial statements. -13-
Capital Total
General Projects Endowment Governmental
Fund Fund Fund Funds
ASSETS
Cash and investments 1,200,482 $ 28,918 $ - $ 1,229,400 $ Restricted cash and investments - - 423,267 423,267
Due from other governments 37,530 - - 37,530
Inventories 5,560 - - 5,560
Total assets 1,243,572 $ 28,918 $ 423,267 $ 1,695,757 $
LIABILITIES
Accounts payable 22,098 $ 12,811 $ - $ 34,909 $
Accrued liabilities 35,902 - - 35,902
Deposits payable - pre-need 142,734 - - 142,734
Total liabilities 200,734 12,811 - 213,545
FUND BALANCES
Nonspendable:
Inventories 5,560 - - 5,560
Permanent fund corpus - - 395,214 395,214
Restricted for:
Capital projects - 16,107 - 16,107
Endowment care - - 28,053 28,053
Unassigned 1,037,278 - - 1,037,278
.
Total fund balances 1,042,838 16,107 423,267 1,482,212
Total liabilities and fund balances 1,243,572 $ 28,918 $ 423,267 $ 1,695,757 $ 782
Wildomar Cemetery District
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
The accompanying notes are an integral party of these financial statements. -14-
Fund balances of governmental funds 1,482,212 $
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets net of depreciation have not been included as financial resources in government fund activity. 1,096,999
Deferred outflows and inflows of resources related to pensions that are required to be recognized over a defined closed period.
Pension related deferred outflows of resources 89,842
Pension related deferred inflows of resources (34,873)
Liabilities that are not due and payable in the current period and are not reported in the funds.
Leases (125,615)
Net pension liability (218,495)
Compensated absences (28,047)
Net position of governmental activities 2,262,023 $
783
Wildomar Cemetery District
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
The accompanying notes are an integral party of these financial statements. -15-
General Projects Endowment Governmental
Fund Fund Fund Funds
REVENUES
Property taxes 708,155 $ - $ - $ 708,155 $
Charges for services 90,886 - 127,763 218,649
Investment earnings 3,836 13 6,336 10,185
Total revenues 802,877 13 134,099 936,989
EXPENDITURES
Current:
General government 556,286 44 - 556,330
Materials and services 100,466 - - 100,466
Debt service:
Principal 58,088 - - 58,088
Interest 4,078 - - 4,078
Capital outlay 42,070 21,998 - 64,068
Total expenditures 760,988 22,042 - 783,030
Excess (deficiency) of revenues over
expenditures 41,889 (22,029) 134,099 153,959
OTHER FINANCING RESOURCES (USES)
Lease acquisition 22,281 - - 22,281
Contributions from other governments - 22,029 - 22,029
Contributions to other governments (78,883) - - (78,883) Total other financing sources (uses) (56,602) 22,029 - (34,573) Net change in fund balances (14,713) - 134,099 119,386
FUND BALANCES
Beginning of year 1,057,551 16,107 289,168 1,362,826
End of year 1,042,838 $ 16,107 $ 423,267 $ 1,482,212 $
784
Wildomar Cemetery District
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, 2023
The accompanying notes are an integral party of these financial statements. -16-
Net change in fund balances - total governmental funds 119,386 $ Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as an expenditure in the full amount as current financial resources are used. However, in the Statement of Activities the cost of these assets is allocated over the estimated useful life as depreciation expense.
Capital outlay, net of disposals 22,281
Depreciation expense (72,106)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. (8,371)
Governmental funds report activity of long-term liabilities as revenues and expenditures, but they are included as increases and reductions on the long-term liabilities in the Statement of Net Position.
Lease acquisition (22,281)
Principal payment 58,088
Net change in compensated absences (4,673)
Net change in the net pension liability 65,387
Change in net position of governmental activities 157,711 $ 785
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-17-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Wildomar Cemetery District (the “District”) conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial principles. The following is a summary of the significant accounting policies.
A. Description of the Reporting Entity
The Wildomar Cemetery District (the District) is a public cemetery district operating under the provisions of the Health and Safety Code of the State of California. The District was created on March 28, 1955 for the purpose of operating a public cemetery for the residents of Wildomar, California. On July 28, 2011, the District was consolidated into the City of Wildomar as a subsidiary district (Government Code Section 57105). As a result, the structure of the District is a separate legal entity and the City Council of the City of Wildomar would oversee the operations of the District acting as the Board of Trustees.
The accompanying financial statements comply with the provisions of GASB in that the financial statements include all organizations, activities, and functions that comprise the District.
Component units are legally separate entities for which the District (the primary entity) is financially accountable. Financial accountability is defined as the ability to appoint a voting majority of the Organization’s governing body and either (1) the District’s ability to impose its will over the Organization or (2) the potential that the Organization will provide a financial benefit to, impose a financial burden on, the District. Using these criteria, the District has no component units.
The District is a component unit of the City of Wildomar and, accordingly, the financial statements of the District are included in the financial statements of the City. The District is an integral part of the reporting entity of the City of Wildomar. Only the funds of the District are included herein, therefore, these financial statements do not purport to represent the financial position or results of operations of the City. The District is reported as a discretely presented component unit of the City of Wildomar.
B. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements The District has implemented GASB No. 96, Subscription-Based Information Technology Arrangements. There was no effect on the current year financial statements due to this pronouncement.
C. Basis of presentation
The District has conformed to the pronouncements of the GASB, which are the primary authoritative statements of accounting principles generally accepted in the United States of America applicable to state and local governments.
786
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-18-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Basis of presentation (continued)
Government-wide Statements: The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the reporting entity. For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Currently, the District does not report any business-type activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are expenses that are clearly identifiable with a specific program, project, function or segment. Program revenues of the District include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment. Taxes and other items that are properly not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Currently, the District does not have any proprietary or fiduciary fund types. Major individual governmental funds are reported as separate columns in the fund financial statements.
Certain eliminations have been made as prescribed by accounting standards in regard to interfund activities, payables and receivables. All internal balances within the District have been eliminated on the statement of net position and the statement of activities.
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within the 60 days of the fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
787
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-19-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.
The District reports the following major governmental funds:
The General Fund is used to account for all financial resources of the District except those required to be accounted for in another fund. Included are transactions for services, rents, property taxes and interest. The general fund balance is available to the District for any purpose provided it is expended or transferred according to the rules of the Health and Safety Code and by approval of the Board of Trustees.
The Capital Projects Fund is used to account for financial resources used in making major capital improvement projects for the Cemetery. The resources are derived from the City of Wildomar.
The Endowment Fund is used to account for financial resources to be used for future maintenance of the Cemetery. The resources are derived from an endowment care fee assessed on each sale of a burial right and earnings on these resources. Only income earned on these resources may be used for services, supplies or capital asset acquisitions.
The principal must be preserved intact.
E. Assets, Deferred Outflows/Inflows of Resources, Liabilities, and Net Position or Equity Cash and Cash Equivalents
The District has defined cash and cash equivalents to include cash on hand, demand deposits, cash with fiscal agent, and short-term investments with original maturities of three months or less from the date of acquisition.
Investments
Investments are recorded at fair value. The estimated fair value of all investments is the quoted market price. Interest earned on all cash and investments is credited to the fund which holds the investment.
Restricted Assets
Certain resources are classified as restricted on the balance sheet because their use is limited to use in the future when the Cemetery no longer has space available to sell for burial rights.
788
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-20-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Assets, Deferred Outflows/Inflows of Resources, Liabilities, and Net Position or Equity (continued)
Inventories
Inventory is valued at cost, which approximates fair value, on a first-in, first-out basis. These costs are recorded as expenditure when consumed rather than when purchased.
Capital Assets
Capital assets, which includes land, building, improvements, equipment, and infrastructure assets are reported in the governmental activities’ column in the government-wide statement of net position but are not reported in the fund financial statements. Capital assets are stated at cost (or estimated historical cost) and updated for additions or retirements during the year. Infrastructure and improvements are capitalized; the cost of normal maintenance and repairs that do not add to the value of the asset of materially extend the assets’ life are not. Donated capital assets are recorded at acquisition value at the date of donation. Capital assets ae depreciated using the straight-line method over the following useful lives:
Assets Years
Buildings and improvements 10 to 15 years
Furniture, fixtures and equipment 3 to 10 years
Costs of assets sold or retired (and related amounts of accumulated depreciation) are eliminated from the accounts in the year of sale or retirement and the resulting gain or loss is included in the operating statement of the related fund. In governmental funds, the sale of general capital assets is included in the statement of revenues, expenditures and changes in fund balances as proceeds from sale of assets.
Property Taxes
Property taxes attach as an enforceable lien on property as of January 1st each year. Secured property taxes are levied on July 1st and are payable in two installments, on December 10th and April 10th. The County of Riverside Assessor’s Office assesses all real and personal property within the County each year. The County of Riverside Treasurer’s Office remits current and delinquent property tax collections to the District throughout the year. Property tax in California is levied in accordance with Article 13A of the State Constitution at one (1%) of countywide assessed valuations.
789
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-21-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Assets, Deferred Outflows/Inflows of Resources, Liabilities, and Net Position or Equity (continued)
Fund Equity
Fund balance in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the District is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The District considers restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the District considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
Nonspendable Fund Balance – Includes amounts that cannot be spent because they are either not in spendable form, or, for legal or contractual reasons, must be kept intact.
Restricted Fund Balance – Constraints placed on the use of these resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors or other governments; or are imposed by law (though constitutional provisions or enabling legislation).
Committed Fund Balance – Amounts that can only be used for specific purposes because of a formal action (resolution or ordinance) by the Board of Trustees, who is government's highest level of decision-making authority.
Assigned Fund Balance – Amounts that are constrained by the District's intent to be used for specific purposes, but that do not meet the criteria to be classified as restricted or committed. Intent can be stipulated by the governing body, another body, or by an official to whom the authority has been given.
Unassigned Fund Balance – These are either residual positive net resources of the General Fund in excess of what can properly be classified in one of the other categories, or negative balances in all other funds.
Net position presents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources, in the statement of net position. Net investment in capital assets is reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are legal limitations imposed on their use by the District, laws or regulations of other governments.
790
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-22-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Assets, Deferred Outflows/Inflows of Resources, Liabilities, and Net Position or Equity (continued)
Net position/fund balance flow assumptions – The District’s policy is to spend restricted amounts first when an expenditure/expense is incurred for purposes for which both restricted and unrestricted resources are available. Therefore, restricted net position/fund balance is depleted before using unrestricted net position/fund balance. In governmental funds, when an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, the assumed order of spending is first committed, assigned and then unassigned.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows/inflows of resources, and liabilities and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
2) CASH AND INVESTMENTS
Cash and investments are classified in the accompanying financial statements as follows:
Cash and investments 1,229,400 $
Restricted cash and investments 423,267
Total cash and investments 1,652,667 $
As of June 30, 2023, Cash and investments consisted of the following:
Deposits with financial institutions 245,866 $
Investments 1,406,801
Total cash and investments 1,652,667 $
The District invested cash from the Endowment Fund for the purpose of increasing earnings through investment activities. Cash not invested is held by the City of Wildomar in pooled accounts. These are identified by the District and the City by individual funds.
791
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-23-
2) CASH AND INVESTMENTS (continued)
Deposits
The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of the City’s deposits. California law also allows financial institutions to secure City’s deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC.
The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors.
Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local government agency. Accordingly, all collateral held by California Agent of Depository are considered to be held for, and in the name of, the local governmental agency.
Authorized Investments
The following table identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy (which the District follows). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive, which the District follows) 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 provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio In One Issuer
U.S. Treasuries 5 years None None
Federal agency securities 5 years None None
Municipal bonds 5 years None None
Money market mutual funds N/A 20% None
Certificates of deposit N/A 10% None
Local Agency Investment Fund (LAIF) N/A None None
Banker’s acceptance notes 180 days 40% 30%
Commercial paper 270 days 25% 10%
Negotiable certificates of deposit 5 years 30% 5%
Joint Powers Authority Investment Pools N/A None None
792
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-24-
2) CASH AND INVESTMENTS (continued)
Investment in California Asset Management Program
The California Asset Management Program (CAMP) is a public joint powers authority which provides California Public Agencies with investment management services for surplus funds and comprehensive investment management, accounting and arbitrage rebate calculation services for proceeds of tax-exempt financings. Public Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants may also establish individual, professionally managed investment accounts (Individual Portfolios) by separate agreement with the Investment Advisor. The District has a separate account in the Investment Advisor to manage part of the CAMP portfolio.
Investments in the Pools and Individual Portfolios are made only in investments in which Public Agencies generally are permitted by California statute. The CAMP may reject any investment and may limit the size of a Participant’s account. The Pool seeks to maintain, but does not guarantee, a constant net asset value of $1.00 per share. A Participant may withdraw funds from its Pool accounts at any time by check or wire transfers. Requests for wire transfers must be made by 9:00 a.m. that day. Fair value of the Pool is determined by the fair value per share of the Pool’s underlying portfolio.
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 District 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 District’s investments to market interest rate fluctuation are presented below:
12 months 13 to 24 25 to 60
Investment type Total or less months months
CAMP 1,406,801 $ 1,406,801 $ - $ - $
Total 1,406,801 $ 1,406,801 $ - $ - $
793
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-25-
2) CASH AND INVESTMENTS (continued)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code and the actual ratings as of the year end for the Pool.
Minimum Rated
Investment Type Amount legal rating AAA
CAMP 1,406,801 $ N/A 1,406,801 $
Total 1,406,801 $ 1,406,801 $
Concentration of Credit Risk
The California Government Code places limitations on the amount that can be invested in any one issuer. There were no investments in any one issuer (other than U.S. Treasury Securities, mutual funds and external investment pools) that represent 5% or more of total investments as of June 30, 2023.
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 does not contain legal 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 government 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 deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
As of June 30, 2023, all deposits with financial institutions in excess of federal depository insurance limit were held in collateralized accounts where the collateral is not held specifically in the name of the District, as described above. As of June 30, 2023, the District did not have any investments held by a broker-dealer (counterparty) that was used by the District to buy the securities.
794
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-26-
3) FAIR VALUE MEASUREMENTS
Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurements and Application, provides the framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value with Level 1 given the highest priority and Level 3 the lowest priority. The three levels of the fair value hierarchy are as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the organization has the ability to access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following:
Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets or liabilities in markets that are not active. Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). Inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).
Level 3 inputs are unobservable inputs for the asset or liability.
Fair value of assets measured on a recurring basis as of June 30, 2023, are as follows:
Significant other
Fair observable inputs
Value (Level 2)
Money market mutual funds 1,406,801 $ 1,406,801 $
Total 1,406,801 $ 1,406,801 $
Fair values for investments are determined by using a matrix pricing technique. Matrix pricing is used to value securities based on the security’s relationship to benchmark quoted prices.
795
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-27-
4) CAPITAL ASSETS
A summary of changes in capital assets is as follows:
Beginning Ending
balance Additions Deletions balance
Capital assets, not being depreciated:
Land 963,390 $ - $ - $ 963,390 $
Total capital assets, not being
depreciated 963,390 - - 963,390
Capital assets, being depreciated:
Right-to-use 206,901 22,281 - 229,182
Buildings and improvements 349,598 - - 349,598
Furniture, fixtures and equipment 160,153 - - 160,153
Total capital assets, being
depreciated 716,652 22,281 - 738,933
Less accumulated depreciation/amortization for:
Right-to-use amortization (59,115) (64,491) - (123,606) Buildings and improvements (338,297) (809) - (339,106)
Furniture, fixtures and equipment (135,806) (6,806) - (142,612) Total Accumulated Depreciation (533,218) (72,106) - (605,324) Total Capital Assets, Being
Depreciated, Net 183,434 (49,825) - 133,609
Governmental Activities
Capital Assets, Net 1,146,824 $ (49,825) $ - $ 1,096,999 $ Depreciation/amortization expense of $72,106 was charged to general government expense on the government-wide statements.
5) DEPOSITS PAYABLE - PRE-NEED
Included in deposits payable - pre-need is $142,734 which represents monies collected and held by the District in advance of services.
6) COMPENSATED ABSENCES PAYABLE
Compensated absences activity for the year ended June 30, 2023 was as follows:
Beginning Ending Due within
balance Additions Deletions balance one year
$ 4,673 23,374 $ - $ 28,047 $ 7,012 $
The liability for compensated absences will be paid in future years from the General Fund.
796
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-28-
7) LEASES PAYABLE
The City has entered into a 42-month lease as lessee for the use of city hall. The District has been allocated a 15% share of the lease. In addition, the District leases a vehicle with an initial liability of $22,281 and a term of 48 months. As of June 30, 2023, the amount of the lease liability is $125,615. The leases have interest rates of 0.4570% and 17.22%, respectively. The estimated useful life of the assets was 5 - 20 years. The value of the right-to-use asset as of June 30, 2023 is $229,182 with accumulated amortization of $123,606. The right-to-use assets are being amortized over the lease term. The vehicle has a guaranteed residual value of $8,199. The lease activity for the year ended June 30, 2023, is as follows:
Beginning Ending Due within
balance Additions Deletions balance one year
$ 22,281 161,422 $ (58,088) $ 125,615 $ 74,003 $
The future lease payments on the lease are as follows:
Year ended
June 30, Principal Interest Total
2024 74,003 $ 3,409 $ 77,412 $
2025 39,787 2,476 42,263
2026 4,851 1,665 6,516
2027 6,974 128 7,102
Totals 125,615 $ 7,678 $ 133,293 $
797
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-29-
8) PENSION PLAN
General Information about the Pension Plans
Plan Description
All full-time employees are eligible to participate in the District’s Miscellaneous Employee Pension Plan, a cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plan are established by State statute and District’s resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Eligible employees hired after January 1, 2013 that, are considered new members as defined by the Public Employees’ Pension Reform Act (PEPRA) are participating in the PEPRA Miscellaneous Plan. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, disclosures, 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 as discussed above. Members with five years of total service are eligible to retire at age 50 or 52 if in the PEPRA Miscellaneous Plan with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.
The system also provides for the Optional Settlement 2W Death Benefit, as well as the 1959 Survivor Benefit. The cost-of-living adjustments for all plans are applied as specified by the Public Employees’ Retirement Law.
The rate plan provisions and benefits in effect as of June 30, 2023, are summarized as follows:
Miscellaneous
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formulas 2.7% at 55 2% at 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50-55+ 52-67+
Monthly benefits, as a % of eligible compensation 2.0%-2.7% 1.0%-2.5% Required employee contribution rates(1) N/A N/A
Required employer contribution rates N/A N/A
(1) The District currently has no employees and all services are performed by City Employees.
798
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-30-
8) PENSION PLAN (continued)
General Information about the Pension Plans (continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer contributions to the Plan for the fiscal year ended June 30, 2023 were $25,627. The actual employer payments of $23,696 made to CalPERS by the District during the measurement period ended June 30, 2022 differed from the proportionate share of the employer’s contributions of $24,270 by $574, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The District’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, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
799
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-31-
8) PENSION PLAN (continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability (continued) Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method Entry age normal
Asset valuation method Fair value of assets
Actuarial assumptions:
Discount rate 6.90%
Inflation 2.30%
Projected salary increase Varies by Entry Age and Service Mortality CalPERS membership data(1)
Post retirement benefit increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on
purchasing power applies, 2.30% thereafter.
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include 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 CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
All other actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website, at www.calpers.ca.gov.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
800
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-32-
8) PENSION PLAN (continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued)
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:
Assumed Asset
Assets Class Allocation Real Return1, 2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.
Change of Assumptions
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.
801
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-33-
8) PENSION PLAN (continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued)
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
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
802
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-34-
8) PENSION PLAN (continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued)
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.
Investments are reported at fair value.
Proportionate Share of Net Pension Liability
The following table shows the Plan’s proportionate share of the net pension liability over the measurement period.
District total District fiduciary District net pension
pension liability net position liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2021 (VD) 680,793 $ 545,587 $ 135,206 $ Balance at: 6/30/2022 (MD) 686,397 467,902 218,495
Net change (5,604) $ 77,685 $ (83,289) $
Valuation date (VD); Measurement date (MD)
803
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-35-
8) PENSION PLAN (continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued)
The District’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 District’s proportionate share of the net pension liability for the total Plan as of the June 30, 2022 and 2023 fiscal years was as follows:
Proportion - June 30, 2022 0.00250%
Proportion - June 30, 2023 0.00189%
Change - increase (decrease) -0.00061%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the District’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:
Discount rate - 1% Current Discount Discount rate - 1%
(5.90%) Rate (6.90%) (7.90%)
Net pension liability 312,063 $ 218,495 $ 141,512 $
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.
804
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-36-
8) PENSION PLAN (continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued)
The amortization period differs depending on the source of the gain or loss:
Difference between projected
and actual earnings
5 year straight-line amortization
All other amounts Straight-line amortization over the average expected remaining services lives of all members
that are provided with benefits (active, inactive and
retired) as of the beginning of the measurement
period
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, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
As of the start of the measurement period (July 1, 2021), the District’s net pension liability was $135,206. For the measurement period ending June 30, 2022 (the measurement date), the District incurred a pension expense of $39,761.
As of June 30, 2023, the District has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Deferred
outflows of inflows of
resources resources
Pension contributions subsequent to measurement date 25,627 $ - $ Change of assumptions 22,389 -
Differences between expected and actual experience 1,449 - Differences between projected and actual investment earnings 40,022 - Differences between employer’s contributions and proportionate share of contributions 355 -
Changes in employer’s proportion - 34,873
Total 89,842 $ 34,873 $
805
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-37-
8) PENSION PLAN (continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued)
The amounts above are net of outflows and inflows recognized in the 2022/23 measurement period expense. Contributions subsequent to the measurement date of $25,627 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 Deferred
year ended outflows/inflows
June 30, of resources
2024 1,337 $
2025 2,272
2026 1,254
2027 24,479
2028 -
Thereafter -
Total 29,342 $
9) RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the District obtains insurance coverage.
The District is exposed to various risks of loss related to torts; damage to and theft or destruction of assets; errors and omissions; injuries to employees and natural disaster. The District contracted with Golden State Risk Management Authority for liability, property, and crime damage. Policy limits of $50,000,000 per occurrence for general liability. Policy is written on an Occurrence Form and includes Automobile liability coverage, Officers and Board of Trustees Errors and Omissions and Pollution liability coverage. There is no aggregate limit on this coverage. Property coverage is all risk, replacement cost and provides up to $600,000,000 maximum payment per coverage loss. Coverage includes Automobile Physical Damage, Mobile Equipment and Boller and Machinery.
The District has had no significant reduction in insurance coverage from prior years. The District has had no settlements exceed insurance coverage for the past three years.
Worker’s compensation coverage is maintained by paying premiums to Golden State Risk Management Authority. Policy limits match statutory limits on a per occurrence basis and includes Employer Liability Coverage with policy limits of $5,000,000 per occurrence.
806
Wildomar Cemetery District
Notes to Financial Statements
June 30, 2023
-38-
9) RISK MANAGEMENT (continued)
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonable estimated. Liabilities include an amount for claims that have been incurred by not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amount s for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claim’s liability estimate. 10) COMMITMENTS AND CONTINGENCIES
As of June 30, 2023, in the opinion of the District’s Administration, there are no outstanding matters which would have a significant effect on the financial condition of the funds of the District. 807
REQUIRED SUPPLEMENTARY INFORMATION
808
Wildomar Cemetery District
Notes to Required Supplementary Information
June 30, 2023
-39-
A. Budgetary Data
The District follows these procedures, in establishing budgetary data reflected in the Required Supplemental Information - Budgetary Schedules:
The Board of Trustees approves each year’s budget prior to the beginning of the new fiscal year.
Public hearings are conducted prior to its adoption by the Board. Supplemental appropriations, were required during the period, are also approved by the Board. In most cases, expenditures may not exceed appropriations at the function level. At fiscal year-end, all operating budget appropriations lapse. All funds of the District legally adopt an annual budget which is on a basis consistent with generally accepted accounting principles (GAAP).
B. Excess of Expenditures over Appropriations
Capital outlay and debt service had expenditures in excess of appropriations in the current fiscal year.
809
Wildomar Cemetery District
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the year ended June 30, 2023
-40-
Budgeted amounts Actual Variance with
Original Final amounts final budget
Budgetary fund balance, July 1 $ 1,057,551 1,057,551 $ 1,057,551 $ - $ Resources (inflows):
Property taxes 596,700 672,700 708,155 35,455
Charges for services 66,300 115,000 90,886 (24,114)
Investment earnings 1,600 12,600 3,836 (8,764)
Lease acquisition - - 22,281 22,281
Amounts available for
appropriations 1,722,151 1,857,851 1,882,709 24,858
Charges to appropriations (outflows):
Current:
Personnel services 645,300 704,300 556,286 148,014
Materials and services 115,469 134,464 100,466 33,998
Debt service:
Principal 39,657 45,561 58,088 (12,527)
Interest 674 775 4,078 (3,303)
Capital outlay 11,900 22,400 42,070 (19,670)
Contributions to other governments 433,000 433,000 78,883 354,117 Total charges to appropriations 1,246,000 1,340,500 839,871 500,629 Budgetary fund balance, June 30 $ 517,351 476,151 $ 1,042,838 $ 525,487 $ 810
Wildomar Cemetery District
Required Supplementary Information
Schedule of the District’s Proportionate Share of the Net Pension Liability CalPERS Pension Plan
Last Ten Years(1)
As of June 30, 2023
-41-
Proportionate Share Plan Fiduciary
of the Net Pension Net Position as a
Proportionate Share Employer's Liability as a Percentage of the Measurement Net Pension of the Net Pension Covered Percentage of Total Pension date Liability (1) Liability Payroll (2) Covered Payroll Liability 2015 0.00249% 171,037 $ - $ 0.00% 71.00%
2016 0.00226% 195,159 - 0.00% 80.76%
2017 0.00215% 213,644 - 0.00% 66.49%
2018 0.00211% 203,561 - 0.00% 67.69%
2019 0.00204% 208,876 - 0.00% 68.44%
2020 0.00192% 209,178 - 0.00% 68.68%
2021 0.00250% 135,206 - 0.00% 80.14%
2022 0.00189% 218,495 - 0.00% 68.17%
(2)The District’s plan is still open, how ever does not have any active employees, therefore, no current payroll. * Historical information is required only for measurement periods for w hich GASB 68 is applicable. Future years’ information w ill be displayed up to 10 years as information becomes available.
(1) Proportion of the collective net pension liability represents the plan's proportion of PERF C, w hich includes both the Miscellaneous and Safety Risk pools excluding the 1959 Survivors Risk Pool.
811
Wildomar Cemetery District
Required Supplementary Information
Schedule of Contributions CalPERS Pension Plan
Last Ten Years(1)
As of June 30, 2023
-42-
Contractually Contributions in
Required Relation to the
Contribution Actuarially Contribution Contributions as a Fiscal (Actuarially Determined Deficiency Employer's Percentage of year Determined) Contribution (Excess) Covered Payroll (1) Covered Payroll 2016 13,537 $ (13,537) $ - $ - $ 0.00%
2017 15,113 (15,113) - - 0.00%
2018 17,619 (17,619) - - 0.00%
2019 22,343 (22,343) - - 0.00%
2020 20,744 (20,744) - - 0.00%
2021 23,030 (23,030) - - 0.00%
2022 23,696 (23,696) - - 0.00%
2023 25,627 (25,627) - - 0.00%
Notes to Schedule:
(1)The District’s plan is still open, how ever does not have any active employees, therefore, no current payroll. * Historical information is required only for measurement periods for w hich GASB 68 is applicable. Future years’ information w ill be displayed up to 10 years as information becomes available.
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65% to 7.15%. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from
7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate. 812
SUPPLEMENTARY INFORMATION
813
Wildomar Cemetery District
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Capital Projects Fund
For the year Ended June 30, 2023
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Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary fund balance, July 1 $ 16,107 16,107 $ 16,107 $ - $ Resources (inflows):
Investment earnings - - 13 13
Contributions from other governments 353,000 21,300 22,029 729 Amounts available for
appropriations 369,107 37,407 38,149 742
Charges to appropriations (outflows):
Current:
Materials and services - - 44 (44)
Capital outlay 353,000 24,200 21,998 2,202
Total charges to appropriations 353,000 24,200 22,042 2,158 Budgetary fund balance, June 30 $ 13,207 16,107 $ 16,107 $ 2,900 $ 814
Wildomar Cemetery District
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Endowment Fund
For the year ended June 30, 2023
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Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary fund balance, July 1 $ 289,168 289,168 $ 289,168 $ - $ Resources (inflows):
Charges for services 25,000 135,000 127,763 (7,237)
Investment earnings 5,000 20,000 6,336 (13,664)
Amounts available for
appropriations 319,168 444,168 423,267 (20,901)
Budgetary fund balance, June 30 $ 444,168 319,168 $ 423,267 $ (20,901) $ 815
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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Independent Auditor's Report
To the Honorable Mayor and Members
of the City Council
City of Wildomar, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Wildomar Cemetery District (the District), a component unit of the City of Wildomar, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s financial statements, and have issued our report thereon dated March 20, 2024.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements we considered the District’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 District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’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.
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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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’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 District’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 District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
San Bernardino, California
March 20, 2024
817
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March 20, 2024
President and Board of Trustees
Wildomar Cemetery District
Wildomar, California
We have audited the financial statements of Wildomar Cemetery District (the District), a discreetly presented component unit of the City of Wildomar, as of and for the year ended June 30, 2023, and have issued our report thereon dated March 20, 2024. 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 October 4, 2023, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the District solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
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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, and our firm have complied with all relevant ethical requirements regarding independence.
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: Management's failure to recognize revenue in accordance with generally accepted accounting principles.
These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters 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 District’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 District is included in Note 1 to the financial statements. As described in Note 1 of the financial statements, during the year, the District adopted the provisions of Governmental Accounting Standards Board 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 current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
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The most sensitive accounting estimates affecting the financial statements are:
Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the depreciation expense is based on historical estimates of each capitalized item’s useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the net pension liability and related deferred inflows and outflows 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 financial statements taken as a whole.
Management’s estimate of the net OPEB liability and related deferred inflows and outflows 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 financial 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/subscription 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 District’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 accumulated depreciation in the notes to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.
The disclosure of net pension liability and related deferred inflows and outflows in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.
The disclosure of net OPEB liability and related deferred inflows and outflows in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates. The disclosure of leases/subscription liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain term and assumptions in the lease agreements which could differ from actual amounts.
The financial statement disclosures are neutral, consistent, and clear. 820
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Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. We did not identify any uncorrected misstatements.
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 District’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 20, 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 City, 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 District’s auditors.
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Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information in documents containing the District's audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. 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.
This report is intended solely for the information and use of the President and Board of Trustees and Management of the District and is not intended to be and should not be used by anyone other than these specified parties.
San Bernardino, California
March 20, 2024
822
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825
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