Agenda Item No. 3
CITY OF YUCAIPA.
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Phil White, Director of Finance
FOR: City Council Meeting of March 13, 2023
SUBJECT: Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022
RECOMMENDATION:
Receive and File the Annual Comprehensive Financial Report for the year ended June 30, 2022, and other related audit reports.
DISCUSSION:
The City's financial records are audited on an annual basis by an independent auditor retained by the City. The FY 2021-22 audit was performed by the external audit firm, Van Lant and Fankhanel, LLF (VLF). The results of the audit and related reports were reviewed with City management and final reports issued on February 22, 2023. The opinion rendered on the financial statements was unmodified, or a "clean audit opinion".
In addition to the basic financial statements, the City also includes supplementary sections in its financial report. These sections include a Letter of Transmission, Management's Discussion and Analysis, detailed combining schedules, and statistical information. This information is not a required part of the financial statements, but is included to provide additional transparency to the City's financial operations. The inclusion of this information allows the City to refer to its financial report as an Annual Comprehensive Financial Report (ACFR).
VLF also issued a report on the consideration of the City's internal control over financial reporting.
While the purpose of that report is to consider and not to opine on the City's internal control, the auditors reported no internal control deficiencies or instances of noncompliance. The ACFR and the internal control report are available on the City's website.
The finance committee reviewed this item in detail at its March 7, 2023 meeting and is recommending approval.
18 City Council Meeting of March 13, 2023
Audit Report for Fiscal Year Ended June 30; 2022
FISCAL IMPACT:
None related to this item.
Attachments:
1. FY 2021-22 Annual Comprehensive Financial Report
2. Internal Control Report
3. 1~Y 2021-22 Appropriations Limit Agreed Upon Procedures Report
4. AU-C 260 Auditor Communications Letter
Approved by:=
19 CITY
CITY OF YUCAIPA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2022
Prepared by
Finance Department
21 City of Yucaipa
Annual Comprehensive Financial Report
Year Ended June 30, 2022
TABLE OF CONTENTS
Pape
INTRODUCTORY SECTION
Letter of Transmittal 1-5
FINANCIAL SECTION
Independent Auditor's Report 6-8
Management's Discussion and Analysis 9 - 17
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Position
18 Statement of Activities
19 Fund Financial Statements:
Balance Sheet - Governmental Funds
20 - 21
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position 22 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 23 - 24
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities
25 Statement of Net Position - Proprietary Fund
26 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund 27 Statement of Cash Flows - Proprietary Fund
28 Statement of Fiduciary Net Position
29 Statement of Changes in Fiduciary Net Position
30 Notes to Financial Statements
31 - 57
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability 58 Schedule of Plan Contributions 59
Schedule of Changes in Total OPEB Liability and Related Ratios 60 Budgetary Comparison Schedule — General Fund 61
Budgetary Comparison Schedule —Measure I Special Revenue Fund 62 Budgetary Comparison Schedule — Miscellaneous Special Revenue Fund 63 Notes to Required Supplementary Information 64
Supplementary Information
Budgetary Comparison Schedules — Major Funds
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Developer Fees Public Facilities Capital Projects Fund
65 Developer Impact Fees Parks Capital Projects Fund
66 Developer Fees Drainage Capital Projects Fund
67 Non -Major Governmental Funds
Combining Balance Sheet
68 - 71
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 72 - 75
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Gas Tax Special Revenue Fund
76 22
City of Yucaipa
Annual Comprehensive Financial Report
Year Ended June 30, 2022
TABLE OF CONTENTS -Continued
Page
Supplementary Information - Continued
Energy Independence Program Special Revenue Fund
77 State COPs Grant Special Revenue Fund
78 Office of Traffic and Safety Special Revenue Fund
79 LLMD Special Revenue Fund
80 Housing Authority Special Revenue Fund
81 Paramedic Special Revenue Fund
82 PEG Video Special Revenue Fund
83 Capital Projects Funds:
Miscellaneous Capital Projects Fund
84 CDBG Capital Projects Fund
85 Air Quality Improvement Capital Projects Fund
86 Pool Capital Replacement Capital Projects Fund
87 Street Maintenance Capital Projects Fund
88 TEA Article 3 Capital Projects Fund
89 1-10 Specific Plan Capital Projects Fund
90 Traffic Facilities Capital Projects Fund
91 Developer Impact Fees Fire Capital Projects Fund
92 Facilities Construction Capital Projects Fund
93 Low Water Crossings Capital Projects Fund
94 Custodial Funds:
Combining Statement of Fiduciary Net Position
95 Combining Statement of Changes in Fiduciary Net Position 96 STATISTICAL SECTION
Statistics
97 Net Position by Component
98 - 99
Changes in Net Position
100 -101
Fund Balances of Governmental Funds
102 -103
Changes in Governmental Fund Balances
104 -105
Assessed Value and Estimated Actual Value of Taxable Property by Major Type 106 -107
Direct and Overlapping Property Tax Rates
108 - 109
Principal Property Tax Payers
110
Property Tax Levies and Collections
111
Ratios of Outstanding Debt by Type
112
Ratios of General Bonded Debt Outstanding
113
Direct and Overlapping Debt
114
Legal Debt Margin Information
115
Pledged Revenue Coverage
116
Demographic and Economic Statistics
117
Principal Employers
118
City Employees by Function
119
Operating Indicators by Function
120
Capital Asset Statistics by Function
121
23 INTRODUCTORY SECTION
24 CITY OF
February 22, 2023
To the Honorable Mayor, Members of the City Council and the Citizens of Yucaipa; State law requires that every general-purpose local government publish a complete set of audited financial statements for each fiscal year. This report is published to fulfill that requirement for the fiscal year ended June 30, 2021
This report consists of management's representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls that it has established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City's financial statements have been audited by Van Lant & Fankhanel LLP, an independent firm of certified public accountants. The objective of the audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022, are free of material misstatement. The audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City's financial statements for the fiscal year ended June 30, 2022, were fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). The independent auditor's report is presented as the first component of the financial section of this report.
The audit of the financial statements of the City is a part of a broader, federally mandated "Single Audit" designated to meet the special needs of federal granting agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the City's internal controls over compliance involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial 9 25
statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.
The annual budget serves as the foundation for the City's financial planning and control. Prior to the beginning of the fiscal year, the City Manager submits a draft budget for the upcoming year to the City Council for their consideration and approval. Management is authorized to approve budget adjustments within designated thresholds; however, they must be reported to City Council on a periodic basis. The City maintains budgetary controls to ensure compliance with provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, Special Revenue, Debt Service, Capital Projects, and Internal Service funds are included in the annual budget. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control, Encumbered amounts lapse at year-end.
Budget -to -actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund and major Special Revenue funds, this comparison is presented as part of the required supplementary information in the accompanying financial statements, For governmental funds that have appropriated annual budgets, other than the General Fund and major special revenue funds, this comparison is presented in the supplementary section of the accompanying financial statements.
PROFILE OF THE GOVERNMENT
The City of Yucaipa was incorporated on November 27, 1989. It is a "General Law" City with a population of approximately 55,000 and is governed by a City Council/City Manager form of government, The City observes State laws and makes local laws (i.e. speed limits). The City Council has the power to make and enforce all laws and regulations with respect to municipal affairs.
The Yucaipa City Council is comprised of five Councilmembers. Each shares equal voting powers on all items coming before the Council. Councilmembers are elected by district to four-year terms, with elections held in November of even -numbered years. The Council meets annually to choose one of its members as Mayor and another of its members as Mayor Pro-Tem. The City Council appoints the City Manager and City Attorney and members of all advisory boards, commissions and committees. The members of the City Council also serve as the Board of Directors for the Successor Agency to the Yucaipa Redevelopment Agency and the Yucaipa Housing Authority.
Yucaipa is a mature, well -established suburban community nestled in the foothills of the San Bernardino Mountains. residents enjoy cleaner air and cooler temperatures as a result of the higher elevations, and a comprehensive approach to community safety has produced one of the lowest rates of crime for comparably sized cities anywhere in the State of California.
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 ♦ FAX 909/790-9203 • e-mail. city@vucair)a.ore 2 26
The City includes 18 parks, encompassing approximately 534 acres, including an equestrian arena and a municipal pool, as well as a 200 acre San Bernardino County regional park with 3 lakes for swimming, boating, and fishing, plus campgrounds and playgrounds for the entire family and the 1,000 +/- acre Wiidwood Canyon State Park. The Yucaipa-Calimesa Joint Unified School District has an outstanding reputation, and it ranks at or near the tap in every category of educational achievement. In addition, Crafton Hills College offers day and evening programs of continuing education and training ❑pportunities for personal and professional development. Three museums, a Library, a Senior Center, and over 40 churches and 90 social or business clubs round out the community.
The Yucaipa performing Arts Center (YPAC) and the adjacent urban Uptown Park is a 16,200 sq, ft. facility with a 10,500 sq. ft. multi -purpose theater which has retractable seating for up to 297.
The versatile space allows for audiences of up to 500 standing as well as configurations for receptions and meetings. In addition, within the Uptown Park the facility opens an indoor/outdoor stage with an adjoining 14,000 sq. ft. open air plaza for audiences. The YPAC serves as an anchor within the Historic Uptown district of the City and provides space for all types of performing arts including concerts, dance, theatre, galas, and major events.
The City of Yucaipa provides a full range of services to its residents. These services include, but are not limited to police protection, fire suppression, paramedic services, the construction and maintenance of streets and infrastructure planning and zoning, building and safety permitting and inspecting, engineering and inspection, code enforcement, recreational activities, enrichment programs and general administration. Other services are provided by San Bernardino County, Yucaipa -Ca limesa Joint Unified School District, Yucaipa Valley Water District, South Mesa Water Company and Western Heights Water Company. The City contracts for law enforcement services with the San Bernardino County Sheriff's Department and for fire suppression and paramedic services with the California Department of Forestry and Fire Prevention (CAL FIRE).
ECONOMIC CONDITION AND OUTLOOK
The profile outlined above demonstrates the value placed an public services provided by the City.
Through the implementation of relevant fiscal policies, as described below, and a conservative fiscal strategy, combined with the economic outlook of the community, the City is poised and able to provide the amenities and facilities identified in this report on behalf of the residents. The City has successfully maintained a high pavement quality index for all of its streets, invested in parks and facilities and implemented a series of annual festivals to enhance the recreational participation in the community. This fiscal strategy assists in laying the foundation to continue the City's financial success into the future. In addition, the City is able to respond to any changes in the economic climate appropriately and effectively.
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399 9950
909/797-2489 ♦ FAX 909/790-9203 * e-mail: [email protected] 3 27
The information presented in the financial statements is perhaps best understood from the broader perspective of the specific environment within which the City operates.
Local Economy
The City of Yucaipa is primarily a residential community whose economy is based primarily upon service and manufacturing. Many residents commute for employment to other cities within the region.
The City's revenues have continued to increase through fiscal year 2021/2022. The City's largest revenue source is property taxes in the amount of $13.8 million which is a 3.9% increase from the previous fiscal year, The trend of rising property values continued in the most recent fiscal year, Sales tax revenues have experienced annual growth except for fiscal year 2019/2020. The following fiscal year, the trend of increasing sales tax revenue returned to the City, During fiscal year 2.021/2022, sales tax revenues increased 15,2%, This year's growth is primarily attributed to retail development projects being completed throughout the City, For the future, there are several projects that hold economic development potential for the community. City staff continues to work with the development community to facilitate economic opportunities and foster responsible impacts. For example, the City has constructed several drainage related projects that have removed over 400 properties from associated flood plains and assisted in the capture and recharge of rainwater, while enhancing travel routes by eliminating low water crossings. In addition, the following major projects are currently under design or in some stage of development or were very recently completed. Each project plays a vital role in the overall economic development strategy employed by the City Council. • College Village Specific Plan
• Widening Yucaipa Boulevard from IV' Street to Interstate 10, including utility undergrounding and sewer and water improvements (Phase III) • Historic Uptown Revitalization
• Wildwood Canyon Interchange
• Live Oak Canyon Road Improvements
• Oak Glen Creek Specific Plan
• Interstate 10 Gateway Project —Yucaipa Pointe
• Dunlap Park
• Wilson Creek Basin III
• County Line Road Improvements
* Avenue E Road/Intersection Improvements
• Freeway Corridor Specific Plan
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 ♦ FAX 909/790-9203 • e-mail: [email protected] 4 28
Long Term Financial Planning
From the time the City was incorporated, the City has had a longstanding philosophy of only paying cash for capital projects and infrastructure improvements. Several facilities built with available cash include: the Community Park and Community Center/Gym, City Hall, Fire Station #3, the Police Station, the Yucaipa Performing Arts Center, El Dorado Park, and now a new City Yard. Many infrastructure improvements that have been financed with available cash include:
the Widening of Yucaipa Boulevard, the Live Oak / 1-10 Interchange, and numerous drainage and park improvement projects including the most recent acquisition of the 334 acre El Dorado Park to be used as open space and for recreational purposes and as a mitigation "bank" for other important City projects and the 11-acre future Five Winds Ranch Recreation Center.
The City has historically used its discretionary fund balance to leverage outside funding sources in the construction of necessary capital projects. The City has aggressively and successfully acquired numerous federal, state, and local grants to assist in the financing of multiple City related capital projects.
Relevant Financial Policies
The City Council has funded two contingency accounts to serve as buffers against severe changes in the local economic environment. The General Fund Emergency Contingency, is established for use upon the declaration of a state or federal state of emergency or a local emergency as defined in the Yucaipa Municipal Code Section 8.36.030. This commitment is calculated as 20% of the adopted General Fund Expenditure Budget for each year. In fiscal year 2021/2022 this commitment amounted to $6,358,362. The Reserve for Economic Uncertainties Contingency totals $1,000,000. This account may be used solely in any fiscal year in which actual General Fund revenue is at least 30% less than budgeted. Neither balance has been utilized during the fiscal year,
Acknowledgments
The preparation of the annual comprehensive financial report was made possible by the dedicated service of the entire staff of the Finance department.
Respectfully submitted,
Jennifer Crawford
Acting City Manager
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 ♦ FAX 909/790-9203 # e-mail: [email protected] 5 29
FINANCIAL SECTION
30 Van lank
Fankhanellil"LLP
CartMQd Public AcrquntotLtn (--
Independent Auditor's Report
The Honorable City Council
City of Yucaipa, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Yucaipa (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Yucaipa, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment 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 City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2022, the City adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 error or fraud.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter, Van Lant & t"ankhanel, LLP
29970 Technology Drive. Suite 105 A
Murrleta. CA 92563
909.856.6879 $
31 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 generally accepted auditing standards 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 generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison schedules, and pension and OPEB schedules, 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, 7 32
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining statements and budgetary comparison schedules, 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. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basicfinancial 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 combining statements, as listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole, Other information
Management is responsible for the other information included in the annual report, The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with GouemmentAuditing Standards, we have also issued a report dated February 22, 2023, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance,
J�v �.t 4- yo-m�, �i f
February 22, 2023
B
33 MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Yucaipa (City), we offer the following narrative overview and analysis of the City's financial activities for the fiscal year ended June 30, 2022.
FINANCIAL HIGHLIGHTS
➢ The City's Governmental Activities Net Position increased by approximately 3.4% to $234,2 million as a result of this year's operations.
➢ During the year, the City's revenues exceeded expenses by approximately $7.7 million.
D The total revenues from all sources were approximately $50.1 million. The total cost of all City programs was approximately $42.4 million. For capital related items, depreciation expense of $6.7 million is included in this amount.
➢ The General Fund reported a change in fund balance of approximately ($1.4) million.
The revised General Fund budget reflects an estimated change in fund balance of ($5.4) million.
> For the General Fund, actual operating revenues received exceeded final budget estimates by the amount of $2.3 million, primarily due to increases in property taxes, sales and use taxes, licenses and permits, fines and forfeitures, and other revenues. ➢ Actual operating expenditures in the General Fund were approximately $3.6 million less than the final budget.
➢ At the end of Fiscal Year (FY) 2021-2022, the Unassigned Fund Balance in the General Fund was approximately $10.8 million, or 33.4% of the General Fund's total original budgeted expenditures. This represents a net increase from the previous year's Unassigned Fund Balance in the amount of $1.5 million.
➢ At the end of FY 2021-2022, the unassigned and committed fund balance in the General Fund was approximately $28 million and includes the following accounts:
1. Unassigned Fund Balance $ 10,781,774
2. Committed for Reserve for Economic Contingency
(20% of Operational Budget) 6,358,362
3. Committed for Reserve for Economic Stabilization 1,000,000
4. Committed Fund Balance for Fire Services 9,320,060
5. Committed Other Post -Employment Benefits (OPEB) 559,541 Total 28.019.737
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of Yucaipa's basic financial statements. The City's 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 contains other supplementary information in addition to the basic financial statements and required information.
34 Government -wide Financial Statements. The Government -wide Financial Statements are designed to provide readers with a broad overview of the City's financial position, in a manner similar to that of a private -sector business. These statements are reported on the accrual basis of accounting. Thus, revenues and expenses are reported for some items that will not affect cash flows until future periods.
The Government -wide Financial Statements typically will separate Governmental Activities that are principally supported by taxes and revenues from other agencies, from Business -type Activities and other service fees that are intended to recover all, or a significant portion of their costs, through user fees and charges. The City of Yucaipa currently has no Business -type Activities, The Governmental Activities of the City include General Government, Community Development, Building and Safety, Public Works, Public Safety, Fire Protection Services, Paramedic Services, and Community Services.
The Government -wide Financial Statements include not only the City, but also all legal entities for which the City is financially accountable.
The Statement of Net Position presents information on all the City's assets and liabilities; the difference between the two is reported as the net position. Assets include all infrastructure assets in accordance with GASB 34. The liabilities include all obligations. Evaluating increases or decreases in net assets over time may serve as a useful indicator of whether the financial position of the City is improving or declining.
The Statement of Activities presents information on the net cost of each governmental function (activity) during the fiscal year. This statement also identifies the amount of general revenues needed to fully fund each governmental function.
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 City, like other state and local governments, uses fund accounting to demonstrate compliance with finance - related legal requirements. All the funds of the City can be divided into three categories; Governmental Funds, Proprietary Funds, and Fiduciary Funds.
Governmental Funds (General Fund, Special Revenue, Debt Service and Capital Projects Funds) are used to account for the same functions reported as Governmental Activities in the Government - wide Financial Statements. However, unlike Government -wide Financial Statements, Fund Financial Statements focus on short-term inflows and outflows of spendable resources. These funds are reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. This information may be useful in evaluating the City's short-term financing requirements. io
35 The focus of the Fund Financial Statements is narrower than that of the Government -wide Financial Statements. The various fund Balance Sheets and the Statement of Revenues, Expenditures, and Changes in Fund Balances, require a reconciliation to facilitate the comparison between fund statements and the government -wide statements. This reconciliation is required because the government -wide statements are prepared in the full accrual basis of accounting while the fund statements are prepared in the modified accrual basis of accounting. This reconciliation can be found on the pages immediately following the Balance Sheet and Statement of revenues, Expenditures, and Changes in Fund Balances for Governmental Funds.
Proprietary Funds include Enterprise and Internal Service Funds. The City currently has no Enterprise Funds. Internal Service Funds are used to accumulate and allocate costs internally to various functions. The City uses an Internal Service Fund to account for its self-insurance activities related to 'Worker's Compensation, liability, and property insurance, The proprietary fund statements provide financial information for the Internal Service Fund.
Fiduciary Funds are used to account for resources held for the benefit of parties outside of the City. Fiduciary funds are not reflected in the government -wide and fund financial statements because the resources of those funds are not available to support the City's own programs.
Fiduciary Funds are reported in the financial section, as appropriate. The City currently maintains four fiduciary funds. The first is a deposit made several years ago for the benefit of City residents relating to the Sheriff s Department. The second fiduciary fund is used to account for transactions related to a deposit made for the benefit of the Yucaipa Historical Society relating to the disposition of the Kramer House, previously Iocated within Chapman Heights. The third fiduciary fund includes the debt service reserve funds required for the Community Facilities District No. 98-1 of the City of Yucaipa (Chapman Heights). The fourth fiduciary fund maintained includes the financial information related to the Successor Agency to the City's former Redevelopment Agency (RDA).
Notes to the Financial Statements. The notes provide additional information that is essential to the reader for a full understanding of the data provided in the Government -wide and Fund Financial Statements.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government's financial position. In the case of the City of Yucaipa, assets and deferred outflows exceeded liabilities and deferred inflows by approximately $234 million as of June 30, 2022. This represents an increase from the previous year by the amount of approximately $7.7 million. See Table 1, below, for a comparative analysis of net position between the fiscal years ended June 30, 2022 and June 30, 2021, 11 36
Table I
Net Position
Governmental Activities
Fiscal Year Ended June 30
Current and other Assets
Capital Assets, Net
Total Assets
Deferred Outflows of resources
Current Liabilities
Gong Term Liabilities
Total Liabilities
Deferred Inflows of Resources
Net Position:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Net Position
2022
$ 64,450,210
187,300,451
251,750,661
2021
$ 59,549,160
_ 187,300,451 _
246,848,611
2,003,136 2,035,864
12,029, 944
5,330,312
17,360,256
13,754,452
8.333.740
22,088,192
22145,301 259,415
192,150,325
17,862,918
24,234,997
$ 234,248,240
187,300,451
13,254,984
25,981,533
$ 226,536,868
A large portion of the City's net position, $192.1 million, reflects its investment in capital assets (i.e., land, buildings, machinery, equipment and infrastructure), less any related debt used to acquire those assets that is still outstanding, if applicable. The City uses these capital assets to provide services to citizens, consequently, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. It is important to note that the only debt currently reported in the financial statements is that debt incurred by the routine payments of current obligations. Debt obligations incurred by the former RDA and the Community Facilities District No. 98-1 are not included in the Governmental Activities within the Financial Statements.
An additional portion of the City's net position, $17.9 million, or 7.6% of total net position, represents resources that are subject to external restrictions on how they may be used. This typically refers to funds received through State and Federal grants. The remaining balance of Unrestricted Net Position, $24.2 million, may be used to meet the government's ongoing obligations to citizens and creditors.
12 37
The condensed summary of activities, which follows, shows that net position increased by approximately $7.7 million during the year as a result of operations. The summary reflects an increase in total revenues in the amount of approximately $ I.1 million from the previous year. The increases in program and general revenues were partially offset by lower investment income.
The summary also reflects an increase in total expenses in the amount of approximately $1 million from the previous year. The increase is the result of increased costs associated with public safety and community services partially offset with reduced costs associated with the City's pension plan.
Table 2
Summary of Governmental Activities
Fiscal Year Ended June 30
Revenues
Program Revenues:
Charges for Services
Operating Grants
Capital Grants
General Revenues:
Property Taxes
Sales Taxes
Other Taxes and Fees
Motor Vehicle In -Lieu Fees
Investment Income/Mist
Total Revenues
Expenses
General Government
Public Safety/Fire/Paramedic
Comm. Dev./Pub. Works/Build. &
Safety
Community Services
Total Expenses
Increase in Net position
Beginning Net Position
Ending Net Position
2022
$ 7,477,356
5,938,900
9,340,764
13,802,354
5,299,433
2,014,485
5,931,673
272,835
50,077,800
4,943,392
18,010,685
2021
$ 4,557,440
3,568,495
9,636,799
13,283,544
4,600,872
1,901,420
5,689,226
5,718,369
48,956,165
5,523,173
21,553,475
15,891,490
12,466,518
3,520,861
_ 1,846,775
42,366,428
41,389,941
7,711,372
7,566,224
226,536,868
218,970,644
$ 234,248,240 $ 226,536,868
13 38
Table 3
Revenues by Source — Governmental Activities
For the Years Ended June 30, 2022 & 2021
Taxes
Property
Sales and Use
Franchise Fees
Doc. Transfer
Other Taxes
Vehicle License Fees
Investment income
Miscellaneous Revenues
Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
Total
2021/22 2020/21
% of % of
Amount Total Amount Total
$ 13,802,354
27.6%
5,299,433
10.6%
1,672,542
3.3%
318,285
0.6%
23,658
0.0%
5,931,673
11.8%
(187,606)
-0.4%
460,441
0.9%
7,477,356
14.9%
5,938,900 11.9%
9,340,764 18.6%
50,077,800 100% $
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
13,283,544
27.1%
4,600,872
9.4%
1,567,185
3.2%
311,936
0.6%
22,299
4.0%
5,689,226
11.6%
43,503
0.1 %
5,674,866
11.6%
4,557,440
9.3%
3,568,495 7.3%
9,636,799 19.7%
48,956,165 100%
Governmental Funds. The focus of the City's governmental funds is to provide information on the near -term inflows, outflows and balances of spendable resources. Such information may be useful in assessing the City's financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of approximately $42.3 million, an increase of approximately $1 million in comparison with the prior year. The General Fund has a fund balance of approximately 51 million, while all other governmental funds combined have an approximate total fund balance deficit of approximately ($8.6) million. This is due primarily to long-term deficit spending in capital projects requiring of loans from the General Fund (see Note 15 Accumulated Fund Deficits for further discussion).
Below is an analysis of each of the City's major funds. 14 39
General Fund
For purposes of reporting and presentation in the ACFR, the General Fund is the chief operating fund of the City. As of June 30, 2022, the Unassigned Fund Balance of the General Fund was approximately $10.8 million. Included in the $17.2 million Committed Fund Balance is approximately $6.4 million that was authorized by City Council for future operating and economic contingencies and approximately $9.3 million related to the consolidation of the Fire Protection Services Fund Balance. The total Fund Balance in the General Fund, as of June 30, 2022, was approximately $51 million.
The total Fund Balance of the City's General Fund decreased by an amount of approximately ($1.4) million. This decrease in Fund Balance was due to transfers out of the General Fund to fund capital projects. The differences in General Fund revenues from the total budgeted estimates can be summarized as follows:
2021/22 Budget 2021/22 Actual
Description
Estimate
Revenue
Variance
% Change
Property Tax
S 12,235,563
$ 12,712,240
$ 476,677
3.9%
Sales Tax
5,027,131
5,299,433
272,302
5.4%
Charges for Services
3,075,554
3,779,467
703,913
22.9%
Other Taxes
1,671,600
1,942,373
270,773
16.2%
Other Governmental
5,945,348
6,109,167
163,819
2.8%
Licenses & Permits
909,145
1,375,320
466,175
51.3%
Investment Income
81,500
(267,615)
(349,115)
-428.4%
Misc. Revenues
432,596
707,823
275,227
63.6%
Transfers In
1,845,437
3,193,612
1,348,175
73.1%
During FY 2021-2022, the City experienced increases among most revenue categories including Property Taxes, Sales and Use Taxes, Fines and Forfeitures, and program revenues. Investment income was one exception, as the City experienced a decrease of approximately ($348 thousand) from the prior fiscal year.
Special Revenue Funds:
Mencure I
The Measure I Special Revenue Fund accounts for the %% sales tax that is required to be used for the maintenance and improvement of City streets. In FY 2021-2022, the fund balance of the Measure I Fund decreased by approximately $1.4 million due mainly to increased participation in street improvement activities,
Miscellaneous
The Miscellaneous Special Revenue Fund primarily accounts for grant funding restricted for specific purposes. In FY 2021-2022, the fund balance decreased by approximately $0.5 million. 15 40
Capital Projects Funds:
Public Facilities
The Public Facilities Fund is one component of the City's Development Impact Fee Program. It is used to account for impact fees received for new development and the costs of construction of public facilities including the Yucaipa Performing Arts Center. To the extent that the costs of construction exceed fund resources, an interfund cash flow borrowing is recorded. These loans will be repaid with future collection of impact fees. In FY 2021-2022, the fund balance of the Public Facilities Fund decreased slightly ($40 thousand).
Park Facilities
The Park Facilities Fund is another component of the City's Development Impact Fee Program. It is used to account for impact fees received and to be used for costs of constructing parks, amenities, and open space. To the extent that the costs of construction exceed fund resources, an interfund cash flow borrowing is recorded. These loans will be repaid with future collection of impact fees.
In FY 2021-2022, the fund balance of the Park Facilities Fund increased by $822 thousand.
Drainage
The Drainage Fund is another component of the City's Development Impact Fee Program, It is used to account for financial transactions specifically related to the construction of drainage projects. In prior years, the General Fund has loaned the Drainage Fund resources for the construction of drainage. To the extent that the costs of construction exceed fund resources, an interfund cash flow borrowing is recorded. These loans will be repaid with future collection of impact fees. In FY 2021-2022, the fund balance of the Drainage Fund increased by $ l .6 million.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. The City's investment in capital assets for its governmental activities as of June 30, 2022, amounts to approximately $192 million (net of accumulated depreciation). This investment in capital assets includes land, infrastructure, buildings and improvements, equipment and construction -in -progress.
This component of net position increased approximately $4.8 million during the fiscal year. The increase is attributable to an $8.9 million increase to construction in progress offset by $6.7 million in recognized depreciation expense. See Table 4 below for the capital asset amounts by category as of June 30, 2022. Also, please refer to Note S in the financial statements for more detailed information.
16 41
Table 4
City of Yucaipa
Recorded Capital Assets at Year -End
(Net of Depreciation)
Land/Rights of Way
Infrastructure
Structures and Improvements
Equipment / Vehicles
Construction -in -Progress
Total Capital Assets
$ 63,284,934
98,660,095
4,518,622
2,167,381
23,519,293
$ 192,150,325
Longterm Debt. At the end of the current fiscal year, other than the obligations outlined in Note 9 related to the total Other Post -Employment Benefits (OPEB), Note S related to Pension Plan liabilities, and Compensated Absences, the City had no outstanding long-term debt. Debt balances accounted for by the Successor Agency to the former Yucaipa Redevelopment Agency are disclosed in Note 7 to the financial statements.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City's financial condition for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Director of Finance, 34272 Yucaipa Blvd., Yucaipa, CA 92399.
17 42
BASIC FINANCIAL STATEMENTS
43 City of Yucaipa
Statement of Net Position
June 30, 2022
Governmental
Activities
ASSETS
Cash and Investments
$ 49,913,884
Receivables:
Accounts
2,790,650
Interest
125,548
Due From Other Governments
1,758,092
Notes and Loans Receivable
3,200,105
Leases Receivable
83,268
Restricted Cash and Investments
1,539,489
Prepaid Items
189,300
Capital Assets, Not Being Depreciated
86,604,227
Capital Assets, Net of Accumulated Depreciation
105,346,098
Total Assets
251,750,661
DEFERRED OUTFLOWS OF RESOURCES
OPES Related Items
507,222
Pension Related Items
1,495,914
Total Deferred Outflows of Resources
2,003,136
LIABILITIES
Accounts Payable
5,472,312
Accrued Liabilities
264,822
Deposits Payable
1,540,189
Unearned Revenue
4,752,621
Noncurrent Liabilities:
Due Within One Year
82,156
Due in More Than One Year
5,248,156
Total Liabilities
17,360,256
DEFERRED INFLOWS OF RESOURCES
Lease Related Items
80,200
OPEB Related Items
57,522
Pension Related Items
2,007,579
Total Deferred Inflows of Resources
2,145,301
NET POSITION
Net Investment in Capital Assets
192,150,325
Restricted for:
Public Safety
1,290,274
Public Works/Transportation
3,403,692
Community Development
1,297,916
Community Services/Public Education
3,643,830
Capital Projects
8,227,206
Unrestricted
24,234,997
Total Net Position
$ 234,248,240
The accompanying notes are an integral part of this statement. 18 44
City of Yucaipa
Statement of Activities
Year Ended June 30, 2022
Net (Expense)
Revenue and
Change in
Program Revenues
Net Position
Charges
Operating
Capital
for
Grants and
Grants and
Governmental
Functions/Programs
Expenses
Services
Contributions
Contributions
Activities
Governmental Activities:
General Government
$ 4.943,392
$ 747,516
$ 3,268,139
$ -
$ (937.737)
Community Development
2.724,779
812,238
181,413
336,377
(1,392,751)
Building and Safety
1,163.594
1,758.166
-
-
594,572
Public Works
12.003,117
1.532,872
1,462,307
8,715,936
(292,002)
Public Safety
12,053.452
416,219
278,194
-
(11.359,039)
Fire Protection Services
4,463.457
425.009
127,787
-
(3,910,661)
Paramedic Services
1.493.776
-
-
-
(1,493,776)
Community Services
3.520.861
1,785,336
631.060
286,451
815,014
Total Governmental Activities
$ 42,366,428
$ 7,477.356
$ 5,938.900
$ 9.340,764
(1%609,40t3)
General Revenues:
Taxes,
Property Taxes
Sales and Use Taxes
Franchise Taxes
Documentary Transfer Tax
Other Taxes
Vehicle License Fees, Unrestricted
Investment Income
Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year
The accompanying notes are an integral part of this statement. 13,802,354
6,299,433
1,672,542
318,285
23,658
5.931.673
(187,606)
460,441
27.320.760
7,711,372
226,536,868
$ 234,24$,240
19 45
ASSETS
Cash and Investments
Receivables. -
Accounts
Interest
Due From Other Governments
Due From Other Funds
Restricted Cash and Investments
Advances to Other Funds
Notes and Loans Receivable
Leases Receivable
Prepaid Items
Total Assets
City of Yucaipa
Balance Sheet
Governmental Funds
June 30, 2022
Capital
Special Revenue _ Projects
Developer
Fees Public
General Measure I Miscellaneous Facilities
$ 27.422.487 $ 1,240,931 $ 4,844,727 $ 321.866
2,ti30,943 - - -
111,277 2.793 3,050
- 346.584 198.568
267.755 - -
1,539,489 - -
22,774,870 - 1,037,430
30,000 - -
83,268 - - -
154,812 - - 31.471
$ 55.014,901 $ 1,590.308 $ 6,083.775 $ 353.337
LIABILITIES
Accounts Payable & Accrued Liabilities $ 1,474,738 $
Deposits Payable 1,539,489
Due to Other Funds
Unearned Revenue -
Advances From Other Funds -
Total Liabilities
3.014.227
$ 579,235 $ 213.433
4,752,621 -
- 12,128,903
5,331,857 12,342,336
DEFERRED INFLOWS OF RESOURCES
Lease Related 80,200 - -
Unavailable Revenues 971,055 - 93.502 -
Total Deferred Inflows of Resources 1.051,255 - 93,502 -
FUND BALANCES
Nonspendable 22.929,682 - 31,471
Restricted - 1.590,308 668,416 -
Committed 17.237.963 - -
Assigned - - - -
Unassigned 10,781,774 - (12,020.470)
Total Fund Balances 50.949,419 1.590,308 658.416 (11,988,999) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 55.014,901 $ 1,590,308 $ 6.083.775 $ 353.337 The accomparying notes are an integral part of this statement. 20 46
Capital Projects
Developer Developer Total
Fees Fees Nan -Major Governmental
Parks Drainage Funds Funds
$ 1,108,577 $ - S 14.076.066 $ 49,014,654
159,191 516 -
2.790.650
159 8,269
125,548
- - 1.212,940
1,768,092
- - 761,000
1,028,755
- - -
1.539,489
- - -
23.812,300
- 2,893,575 276,530
3,200,105
- -
83,268
- 3,017
189.300
$ 1,267,927 S 2,894,091 $ 16.337,622 $ 83,542,161
$ 371,289 $ 693.149 $ 21126,716 $ 5,458,561
- - 700 1,540,189
1,028,765 1,028,755
- - - 4,752,621
4.823,661 1,255.638 5.604.098 23,812,300
5.194,950 1,948,787 8.760,269 36592.426
- - - 80,200
159,191 2,893,575 473.332 4,590,655
159.191 2,893,575 473.332 4.870,855
3,017 22,964,170
7,218.561 9,467,286
- 17,237,963
7,273.590 7,273,590
(4,086,214) _(1,948,271) (7,390,947J (14.664,128)
(4,086,214) _(1,948,271) 7.104.221 42,278,880
$ 1.267,927 $ 2,894.091 $ 16,337,822 $ 83.542,161
21 47
THIS IMAGE INTENTIONALLY DEFT BLANK
48 City of Yucaipa
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position
June 30, 2022
Fund balances of governmental funds
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds:
Capital Assets Not Being Depreciated
Capital Assets Being Depreciated
Accumulated Depreciation
Long-term debt obligations are not due and payable in the current period and, therefore, are not reported in the funds:
Compensated Absences
Net Pension Liability
Total OPEB Liability
Amounts for deferred inflows and deferred outflows related to the City's Pension and OPEB Uablities are not reported in the funds:
Deferred Outflows Related to Pensions
Deferred Inflows Related to Pensions
Deferred Outflows Related to OPEB
Deferred Inflows Related to OPEB
The internal service fund is used by management to charge costs of actitties involved in rendering services to departments within the City. The assets and liabilities of the internal service fund are included in the statement of net position Other long-term assets are not available to pay for current -period expenditures and, therefore, are deferred in the funds.
Net position of governmental activities
The accompanying notes are an integral part of this statement. $ 42,278,880
86,804,227
275,266,465
(169.919.367)
(525,666)
(2,128, 323)
(2,676,323)
1,495,914
(2,007,579)
507,222
(57,522)
620,657
4,590,655
$ 234,248,240
22 49
City of Yucaipa
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2022
Capital
Special
Revenue
Projects
Developer
Fees Public
General
Measure I
Miscellaneous
Facilities
REVENUES
Taxes;
Property Taxes
$ 12,712.240
$
$
$ _
Sales and Use Taxes
5.299.433
-
Franchise Taxes
1.600,430
-
-
Documentary Transfer Tax
318,285
-
-
Other Taxes
23,658
-
-
-
Licenses and Permits
1.375,320
Fines and Forfeitures
309,093
-
17,011
-
Charges for Services
3,779.467
-
76,347
322,666
Intergovernmental
6,109,167
1,427,021
3,548,652
-
Investment Income
(267,616)
(36,313)
(45.084)
(968)
Other
398.730
-
39,691
10,000
Total Revenues
31.658,208
1,390,708
3,636,617
331.698
EXPENDITURES
Current:
General Government
4,669,878
-
527,606
-
Community Development
1,217,271
57,237
-
Building and Safety
1,163,594
-
-
Public Works
3,239,701
31,020
20,199
Public Safety
11.009.776
-
17,808
-
Fire Protection Services
4,463,457
-
-
_
Paramedic Services
Community Services
3,230,233
-
-
-
Capital Outlay
358,528
-
50,749
1,068,169
Total Expenditures
29,252,438
-
684.420
1,088,36$
Excess (Deficiency) of Revenues
over Expenditures
2.405.770
1,390,708
2.952.197
(756.670)
OTHER FINANCING SOURCES (USES)
Transfers In
3.193,612
-
47,626
770,000
Transfers out
(7,021,839)
(2,832,233)
(3,462,054)
(52,962)
Total Other Financing Sources (Uses)
(3.828,227)
2,632,233)
(3,414,428)
717,038
Net Change in Fund Balances
(1,422,457)
(1,441,525)
(462,231)
(39,632)
Fund Balances, Beginning of Year
52,371,876
3.031.833
1,120.647
(11,949,867)
Fund Balances, End of Year
$ 50.949,419
$ 1,590,308
$ 658,416
$ (11,988,999)
The accompanying notes are an integral part of this statement. 23 50
Capital Projects
Developer
Developer
Total
FeeS
Fees
Non -Major
Governmental
Parks
Drainage
Funds
Funds
$ -
$ -
$ 1,090,114
$ 13,802,354
-
-
6,299,433
-
-
72,112
1,672,542
-
-
-
318,286
-
-
-
23,558
-
-
1.375.320
-
-
-
326,104
847,363
906,817
3,058,822
8,991.482
21,398
2,329,663
4,469,989
17,905,890
(3,776)
-
(57,219)
(410,975)
4,349
-
12,020
464.790
869.334
3.236,480
8,645,838
49,768,883
-
-
92,550
6,190,044
-
-
113,578
1,388,086
-
-
1,163,594
-
93,322
1.823,325
5,207,567
-
-
158,871
11,186,455
-
-
-
4,463,457
-
-
1.493.776
1,493,776
35,124
-
37,261
3,302,618
1 j 15,096
2.610.757
9.173.032
14,376,331
1,150,220
2,704,079
12.892,403
47.771.928
(280.886) 532,401 (4,246,565) 1,998.955
1.177,728
1,128,037
8,820,304
15,137,307
(74.778)
_ (69,060)
(2,58i,381)
(16,084,307)
1.102.950
1,068,977
6,238.923
(947,000)
822,064
1,601, 378
1,992,358
1.049.955
(4,908.278) (3,549,649) 5,111.863 41,228,926
$ (4,086,214) $ (1.948,271) $ 7,104,221 $ 42,278,880
24 51
City of Yucaipa
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities Year Ended June 30, 2022
Net change in fund balances - total governmental funds $ 1,049,955 Amounts reported for governmental activities in the Statement of Activities are different because - Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense:
Capital Additions 11,549,637
Depreciation (6,691,897)
Disposals (7,866)
The internal service fund is reported as a proprietary fund separate from the governmental funds. The revenues and expenses of the internal service fund are included in the statement of activities. 339,934
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. This is the net change in unavailable revenue for the current period. 306,595
Amounts for deferred inflows and deferred outflows related to the City's pension and OPEB Liabilities are not reported in the funds. This is the net change in deferred inflows and outflows related to these liabilities - Deferred Outflows Related to Pensions (181,244)
Deferred Inflows Related to Pensions (1,777.129)
Deferred Outflows Related to Total OPEB Liability 148,516 Deferred Inflows Related to Total OPES Liability (28.557) Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.
Compensated Absences (47.062)
Net Pension Liability 3,404,375
Total OPEB Liability (353.885)
Change in net position of governmental activities $ 7,711.372 The accompanying notes are an integral part of this statement. 25 52
City of Yucaipa
Statement of Net Position
Proprietary Fund
June 30, 2022
Governmental
Activities -
Internal Service
Fund
ASSETS
Current:
Cash and Investments
$ 899.230
Total Current Assets
899,230
LIABILITIES
Current:
Accounts Payable
13,751
Noncurrent:
Accrued Liabilities
264,822
Total Liabilities 278,573
NET POSITION
Unrestricted $ 620,657
The accompanying notes are an integral part of this statement. 2B
53 City of Yucaipa
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Fund
Year Ended June 30, 2022
Governmental
Activities -
Internal Service
Fund
OPERATING REVENUES
Other Income $ 95,913
Total Operating Revenues 95.913
OPERATING EXPENSES
Professional Services
645
Property and Liability Premiums
403,449
Claims Expense
299,147
Total Operating Expenses
703,241
Operating Income (Loss)
(607,328)
NON -OPERATING REVENUES (EXPENSES)
Investment Income
262
Income (Loss) before contributions and tfansfers
Transfers In
(607,066)
947,000
Change in Net Position 339,934
Total Net Position, Beginning of Year 280,723
Total Net Position, End of Year $ 620,657
The accompanying notes are an integral part of this statement. 27 54
City of Yucaipa
Statement of Cash Flows
Proprietary Fund
Year Ended June 30, 2022
Governmental
Activities -
Internal Service
Fund
Cash Flows from Operating Activities
Cash Paid to Suppliers for Goods and Service $ (416,900) Cash Paid for Claims (109,325)
Other Receipts 95,913
Net Cash Provided (Used) by Operating Activities (430,312) Cash Rows from Non -Capital Financing Activities
Transfers from Other Funds 947,000
Cash Flows from Investing Activities
Interest Received 276
Net Increase (Decrease) in Cash and Cash Equivalents 516,964 Cash and Cash Equivalents, Beginning of Year 382,266
Cash and Gash Equivalents, End of Year $ 899,230
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities
Operating income (loss) $ (607,328)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities -
Increase (Decrease) in Accounts Payable (12,806)
Increase (Decrease) in Accrued Liabilites 189,822
Net Cash Provided (Used) By Operating Activities
The accompanying notes are an integral part of this statement, $ (430, 312)
28 55
City of Yucaipa
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
ASSETS
Cash and Investments
Cash and Investments with Fiscal Agent
Accounts Receivable
Interest Receivable
Total Assets
LIABILITIES
Accounts Payable
Interest Payable
Bonds Payable
Total Liabilities
NET POSITION
Restricted for Successor Agency Activities
Restricted for Individuals and Organizations
Successor Agency
Private -Purpose Custodial
Trust Fund Funds
$ 512,231 $ 2,730,844
780,274 2,372,035
11,558
701 3,487
1,293,206 5,117,974
2,219
114,151
6,565,691
6,682,061
148
148
{5,388,855) -
5,117, 826
$ (5,388,855) $ 5.117,826
The accompanying notes are an integral part of this statement. 29 56
City of Yucaipa
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended June 30, 2022
ADDITIONS
Taxes and Assessments Collected for Others
Investment Income
Total Additions
DEDUCTIONS
Administration Costs
Interest Expense
Payments to Bondholders
Total Deductions
Change in Net Position
Net Position - Beginning
Net Position - Ending
Successor Agency
Private -Purpose Custodial
Trust Fund Funds
$ 634,125 $ 2,188,634
(9,898) (40,924)
624,227 2,147,710
74,686 56.524
342,371 -
- 2.183,472
417,057 2,239,996
207,170 (92,286)
(5,596,025) 5,210,112
$ (5,388,855) $ 5,117,826
The accompanying notes are an integral part of this statement.
I
30 57
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Yucaipa, California (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.
A) Reporting Entity
The City of Yucaipa was incorporated on November27, 1989 underthe general laws of the State of California.
The City operates under the Council -Manager form of government.
As required by generally accepted accounting principles, these financial statements present the City of Yucaipa and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the City.
The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City)_ In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete.
Currently, the City of Yucaipa does not have any component units to report.
B) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
o Government -wide financial statements
o Fund financial statements
o Notes to the financial statements
Government -Wide Financial Statements
Government -wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.
Government -wide financial statements are presented using the economic resources measurement focus and accrual basis of accounting. Under the economic resources measurement focus, all (both current and long- term) economic resources and obligations of the reporting government are reported in the government -wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from non -exchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, as amended.
31 58
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
1 ) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Program revenues include charges for services and payments made by parties outside the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.
Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the government - wide financial statements, rather than as an other financing source, Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expense.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government's governmental funds are presented after the government -wide financial statements. These statements display information about the major funds individually and nonmajor funds in the aggregate for all funds.
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurabie means that the amounts can be estimated, or otherwise determined. ,available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period.
The City uses an availability period of 60 days, except for grants which are considered available if they are collected within 120 days after year-end_ Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues in the current fiscal period to the extent normally collected within the availability period_ Other revenue items are considered to be measurable and available when cash is received by the government.
Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government -mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
sa
59 City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
7) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.
Non -current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent the net current assets.
Recognition of governmental fund type revenues represented by non -current receivables are deferred until they become current receivables. Non -current portions of long-term receivables are offset by nonspendable fund balance.
Due to the nature of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect current assets, such long- term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.
ProprietarV Fund and Fiduciary Funds
The City's internal service fund is a proprietary fund. In the fund financial statements, the proprietary fund and fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, the proprietary fund and the fiduciary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
The proprietary fund distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's internal service fund are charges to internal customers for risk management functions. Operating expenses for the internal service fund include the cost of services and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 33 60
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C) Fund Classifications
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund, It is used to account for all financial resources except those required to be accounted for in another fund.
The Measure I Special Revenue Fund accounts for the 1/z% sates tax that is required to be used for the maintenance and improvement of City streets.
The Miscellaneous Special Revenue Fund accounts for various grant revenues received for restricted purposes.
The Developer Fees Public Facilities Capital Projects Fund accounts for and reports financial resources collected from development impact fees on new development and restricted for construction of public facilities.
The Developer Fees Parks Capital Projects Fund accounts for and reports financial resources collected from development impact fees on new development and restricted for construction of park facilities.
The [developer Fees Drainage Capital Projects Fund accounts for and reports financial resources collected from development impact fees an new development and restricted for drainage facilities.
Additionally, the City reports the following fund types:
The Self Insurance Internal Service Fund accounts for self -funded insurance, departments of the City are charged for services provided or benefits received from this fund.
The Private -purpose Trust Fund accounts for the balances and transactions of the Successor Agency to the Yucaipa Redevelopment Agency.
The Custodial Fund accounts for monies held for assessment districts, and other deposits.
D) Cash and Investments
Cash includes amounts in demand and time deposits. Investments are reported in the accompanying financial statements at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance.
E) Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and have an original maturity date of 3 months or less.
34 61
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued F) Due from Other Governments
The amounts recorded as due from other governments, include sales taxes, property taxes, and grant revenues, collected or provided by Federal, State, County and City governments and remain unremitted to the City as of June 30, 2022.
G) Interfund Advances
Advances receivable, as reported in the fund financial statements, are offset by nonspendable fund balance in the General Fund to indicate that they are not available for appropriation and are not expendable available financial resources.
H) Property Tax Calendar
Property taxes attach as an enforceable lien on property as of January 1, each year. Taxes are levied on July 1, and are payable in two installments no later than December 10, and April 10, of each year. The County of San Bernardino bills and collects the property taxes and remits them to the City in installments during the year. Under the provisions of NCGA Interpretation 3, property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided it is collected within 60 days of the end of the fiscal year.
The County is permitted by State law (Proposition 13) to levy taxes at 1 % of full market value (at time of purchase) and can increase the property tax rate no more than 2% per year. The City receives a share of this basic levy proportionate to what was received in the 1976 to 1978 period and transferred to the City upon incorporation.
1) Claims and Judgments
The City maintains funds in the Self Insurance Internal Service Fund as a reserve for litigation, judgments and claims equal to a minimum of threetimes the City's self -insured retention. This reserve represents an estimate for claims, including "incurred but not reported" (IBNR).
J) Employee Leave Benefits
In accordance with GASB Statement No 16, a liability is recorded for unused balances only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payment, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee_
K) Capital Assets
Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist, Contributed capital assets received prior to the implementation of GASB 72 are valued at their estimated fair market value at the date of the contribution. Contributed capital assets received subsequent to the implementation of GASB 72 are recorded at acquisition value as of the date received. Generally, capital asset purchases in excess of $10,000 and infrastructure greater than $100,000 are capitalized.
35 62
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued Capital assets include public domain (infrastructure) assets consisting of certain improvements including roads, streets, sidewalks, medians and storm drains. Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government -wide financial statements.
The following schedule summarizes capital asset useful lives:
Building and Improvements 10 - 30 years
Equipment 7 - 10 years
Vehicles 7 -10 years
Infrastructure 10 - 30 years
L) Notes and Loans Receivable
The accompanying financial statements report certain loans receivable for loans made to private developers, private homeowners, and other parties. Where applicable, an allowance for doubtful accounts has been recorded to reflect management's best estimate of probable losses associated with non - repayment.
M) Unearned Revenue
The City reports unearned revenue for grants received prior to the period when eligible expenditures are incurred. The $4,752,621 in unearned revenue reported as of June 30. 2022 represents American Rescue Plan Act funds received but not yet expended on eligible costs.
N) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
O] Net Position
In the government -wide financial statements, net position is classified in the following categories:
Net investment in capital assets describes the portion of net position which is represented by the current net book value of the City's capital assets, less the outstanding balance of any debt issued to financethese assets.
Restricted describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulation, laws, or other restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of net position which is not restricted to use P) Deferred Outflowsllnflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources_ This separate financial statement element, deferred outflows ofresources, represents consumption of net position that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City reports deferred outflows of resources relating to the Net Pension Liability and the Total OPEB Liability.
36 63
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources, This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has certain items, which arise only under the modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported in the govemmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, grant receivables, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, the City reports deferred inflows relating to leases, the Net Pension Liability and the Total OPEB Liability.
0) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the statement of net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider restricted net position to have been depleted before unrestricted net position.
R) Governmental Accounting Standards Board (GASB) Pronouncements The Governmental Accounting Standards Board has issued the following Statements, which may affect the City's financial reporting requirements in the future:
GASB 96— Subscription -Based Information Technology Arrangements: The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 34, 2023.
S) Pensions
For purposes of measuring the net pension liability and deferred outflowslinflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Yucaipa's California Public Employees' Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by CaIPERS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
T) Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and 0PEB expense, information about the fiduciary net position of the City's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined or the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
37 64
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued Valuation Date June 30, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
U) Leases
Lessor., The City is a lessor for noncancellable leases of land owned by the City. The City recognizes a lease receivable and a deferred inflow of resources in the government -wide and governmental fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially the same amount as the beginning lease receivable. The deferred inflow of resources is reduced as revenue on a straight-line basis over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. * The City uses Its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
The City has entered into a lease with American Tower to allow the utilization of a cellular tower on City property. The lease term is 5 years and the agreement includes additional 5-year options. Lease payments increase by 4% each year in June under the terms of the lease. Payments received during the year were $2,694 from July through May and $2,752 in June. The current 5-year term will expire in December 2024.
At July 1, 2021 the City reported a lease receivable and a deferred inflow of resources of $112,280_ During the fiscal year, the City recognized lease revenue of $32,080 and lease interest revenue of $3,374, At June 30, 2022 the balances of the lease receivable and deferred inflow of resources were $83,268 and $80,200, respectively.
2) CASH AND INVESTMENTS
Cash and investments are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and Investments $ 49,913,884
Restricted Cash and Investments 1,539,489
Statement of Fiduciary Net Postion:
Cash and Investments 3,243,075
Cash and Investments with Fiscal Agent 3,152,359
Total Cash and Investments $ 57,848,807
38 65
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS - Continued
Cash and Investments consist of the following:
Cash on Hand $ 1,950
Deposits with Financial Institutions 10,169,627
Investments 47,677,330
Total Cash and Investments $ 57.848,807
Investments Authorized b_v_the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive)_ The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.
Authorized by
Maximum
Maximum
Authorized
Investment
Maximum
Percentage
Investment
Investment Type
Policy
Maturity*
of Portfolio*
In One Issuer*
Local Agency Bonds
No
5 years
None
None
U.S. Treasury Obligations
Yes
2 years
None
None
U.S. Agency Securities
Yes
5 years
None
None
Banker's Acceptances
Yes
180 days
40%
30%
Commercial Paper
Yes
270 days
15%
10%
Negotiable Certificates of Deposit
Yes
2 years
30%
None
Repurchase Agreements
Yes
1 year
None
None
Reverse Repurchase Agreements
No
92 days
20% of base value
None
Medium Term Notes
No
5 years
30%
None
Mutual Funds
No
NIA
20%
10%
Money Market Mutual Funds
Yes
NIA
20%
10°A
Mortgage Pass -through Securities
No
5 years
20%
None
County Fooled Investment Funds
No
NIA
None
None
Local Agency Investment Fund (LAIF)
Yes
NIA
None
None
Supranationals
Yes
5 years
30%
None
JPA Pools (other investment pools)
No
NIA
None
None
"Based on state law requirements or investment policy requirements, whichever is more restrictive.
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provision of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. 39 66
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS -Continued
Authorized
Investment Type
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Medium Term Notes
Money Market Mutual Funds
Repurchase Agreements
Investment Contracts
Local Agency Investment Fund (LAIF)
Disclosures Relating to Interest Rate Risk
Maximum
Maximum
Maximum
Percentage
Investment
Maturity
of Portfolio
In One Issuer
_
5 years
None
None
5 years
None
None
180 days
40%
30%Q
270 days
25%
10%
5 years
30%
None
5 years
30%
5%
NIA
20%4
10%
270 days
30%
None
30 years
None
None
NIA
50 million
!None
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 rate. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer -term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investment by maturity:
Investment Type
Total
Remaining Maturity (in Months)
12 Months or Less _ 1 to 2 Years 2 to 5 Years
U.S. Treasury Obligations
$ 33,178,244
$ 8.217,029
$ 10,835,997 $
14,125,218
U.S. Agency Securities
184,877
38,417
146,460
-
Foreign Issues
231,530
-
-
231,530
Municipal Securities
184,321
-
-
184,321
Medium Term Notes
3,178, 765
-
510,063
2,668, 702
LAIF
7,440,343
7.440.343
-
-
Money Market Mutual Funds
126,889
126,889
-
Held by Bond Trustee:
LAIF
46,107
46,107
-
-
Money Market Mutual Funds
3,107,254
3,107,264
-
-
Total Pooled Investments
$ 47,677,330
$ 18,975,039
$ 11,492,520 $
17,209,771
Disclosures Relating.to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type. The investments must meet the minimum investment rating when purchased. 40 67
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
2) GASH AND INVESTMENTS - Continued
Investment Type _
Total
Minimum
Legal
Hating
AAA
WAA _
U.S. Treasury Obligations
$ 33,178,244
NIA $
-
$ 33.178.244 $
U.S. Agency Securities
184,a77
MIA
-
184,877
Supranational Agency Securities
231.530
A-
231,530
-
Municipal Bonds
184,321
A
-
184.321
Medium Term Notes
3,17$.765
A-
911,743
1,960,316
LAI F
7,440,343
N/A
-
-
Money Market Mutual Funds
126,889
MIA
126.889
-
Field by Bond Trustee:
LAX
45,107
NIA
-
-
Rating not
1986 Required
306,706
- 7.440.343
45.107
Money Market Mutual Funds 3.107,254 AAA 3.107,264 - - - Total Pooled Investments $ 47,677.330 $ 4.377,416 $ 35,507,758 $ 306,706 $ 7.485.450 Concentration of Credit Risk
The investment policy of the City contains no limitations on the arnount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2022, 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 City investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, 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 City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2022, no deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities.
Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as WAIF'). As of June 30, 2022, none of the City's investments were held by the broker -dealer (counterparty) that was used by the City to purchase the securities.
For investments identified herein as held by bond trustee, the bond trustee selects the investments under terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.
41 68
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS - Continued
Fair Value
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Level 2 inputs are valued using a matrix pricing model. The City has the following recurring fair value measurements as of June 30, 2022:
Investment Type
U.S. Treasury Obligations
U.S. Agency Securities
Supranational Agency Securities
Municipal Bonds
Medium Term Notes
Total Pooled Investments
Fair Value Hierarchy
Total Level Level Level
33,178,244 $
184,877
231,530
184,321
3,178,765 _
$ 36,957,737 $
Investment in State Investment Pool
33,178, 244 $ - $
- 184,877
- 231,530
- 184,321
- 3,178,765
33,178.244 $ 3,779,493 $ -
The City is a voluntary participant in the LAIF that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables at June 30, 2022 are as follows:
Due From (Receivable) Due To (Payable) Amount
General Fund Non -major Governmental Funds $ 267,755
Non -major Governmental Funds Non -major Governmental Funds 761,000 Total $ 1,028,755
The interfund balance due to the General Fund was the result of short-term borrowings to cover deficit cash balances at June 30, 2022. The $761,000 due between non -major governmental funds is a result of short-term borrowings for capital projects. Interfund advances at June 30, 2022 are as follows:
Advances to Advances From
Other Funds (Receivable) Other Funds (Payable)
General Fund Developer Fees Public Facilities
Developer Fees Parks
Developer Fees Drainage
Non -major Governmental Funds
Miscellaneous Special Revenue Non -major Governmental Funds Total Advances To/From Other Funds
Amount
$ 12,128,903
4,823,661
1,255,638
4,566.668
1,037,430
$ 23,812,300
42 69
City of Yucaipa
Notes to Financial Statements
Year Ended ,tune 30, 2022
3? INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS -Continued The advances due to the City's General Fund resulted from financing the construction improvements to the Live Oak/Oak Glen Road Interchange, construction of the City Hall, Aquatic Center, construction of the Community Park, construction of Fire Station No, 3, and the Yucaipa Performing Arts Center, respectively.
The City has adopted a Resolution establishing an interfund loan agreement, where the Developer Fees Funds are required to pay off the advances at 50% of the impact fees received, except for the Developer Fees Public Facilities Fund, which is required to make payments at 100% of the impact fees received. The Miscellaneous Special Revenue Fund has provided advances to nonmajor governmental funds for certain street projects. These balances are expected to be repaid with future revenues.
Interfund transfers at June 30, 2022 are as follows:
TRAN5FERSIN
Mlscellaneous
_
Dev. Fees
Developer
Developer
General
Special
Public
Fees
Fees
Internal
Non Major
TRANSFERS OUT
Fund
Revenue
Facilities
Parks
Drainage
service Fund
Funds
Total
General Fund
$
$ 47,626
$ 530,000
$ 679,000
$ 201,037
$ 947,000
$ 4.717,176
$ 7.021.839
Measure 1
2.107
-
-
-
2,630.120
2,032.233
Miscellaneous Special Revenue
2.342,054
-
927.000
-
193,000
3,462.064
Developer Fees Public Facilities
52.962
52,962
Developer Fees Parks
74.778
-
-
74,778
Developer Fees Drainage
59,080
-
59,050
Non -Major Funds
662,651
-
240,000
598,728
1.080,002
_2,581,381
$ 1.193.612
$ 47.626
$ 770,000
$ 1,177.728
$ 1.128, 037
$ 947.000
$ 8,820, $04
$16, 084, 307
The transfers from the General Fund to the other Major Funds and Non -Major Funds were to fund various park and facility projects and for paramedic services. The $947,000 transfer to the Internal Service Fund was to cover claims expenses. The $3,193,612 transfers from the various funds to the General Fund were to help fund various costs, including $2,338,239 of ARPA funds to cover Covid-related revenue loss.
The transfers from the Measure I fund to the Non -Major Funds was to fund various street -related projects, while the $927,000 transfer from the Miscellaneous Special Revenue Fund to the Developer Fees Drainage Fund was to provide funding for the Wilson III Basin project. The transfers from the Non -Major Funds to the Developer Fees Public Facilities Fund, the Developer Fees Drainage Fund, and other Non -Major Funds were to fund project costs for streets, parks, and various other public facilities. 4) NOTES AND LOANS RECEIVABLE
Motes and Loans Receivable at June 30, 2022 include $2,893,575 due from a developer for the sale of real property, $276,530 in loans relating to the City's Energy Independence Program, and $30.000 relating to the City's Facade Improvement Program. Other Notes and Loans are offset by an allowance for doubtful accounts. 43 70
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
5) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 is as follows:
Governmental Activities:
Capital Assets Being Depreciated:
Buildings and Improvements
Equipment
Vehicles
Infrastructure
Total Depreciable Capital Assets
Less Accumulated Depreciation-
Buildings and Improvements
Equipment
Vehicles
Infrastructure
Total Accumulated Depreciation
Capital Assets, Net of Accumulated Depreciation
Capital Assets, Not Being Depreciated:
Land
Rights of Way
Construction in Progress
Total Capital Assets Not Being Depreciated
Total Capital Assets
Beginning Ending
Balance Increases Decreases Balance
$ 15,194, 683 $ - $ - $ 15,194, 683
3,009,788 252,825 (37,496) 3.225.117
3,800.692 53.056 (56, 614) 3,797,134
250,668,093 2,380,438 - 253,048,531
272,673,256 2,686,319 (94.110) 275,265,465
(10, 253, 721)
(422, 340)
-
(10, 676, 061)
(1,932,322)
(356, 338)
35,528
(2,253,132)
(2,371,427)
(281,027)
50,716
(2,601.738)
(148,756,244)
(5,632,192)
-
(154,388,436)
(163,313,714)
(6,691,897)
86,244
(169,919,367)
109, 359, 542
(4, 005, 578)
(71866)
106, 346, 098
4,603,294 - - 4,603, 294
58,681,640 - - 58,681,64D
14, 655, 975 11, 423,196 (2,559.878) 23, 519, 293
77.940.909 11,423,196 (2,559,878) 86, 804, 227_
$ 187, 300, 451 $ 7,417, 618 $ (2,567,744) $ 192,160, 325 Depreciation expense was charged to the following functions in the Statement of Activities:
General Government $ 311,297
Public Safety 864,675
Public Works 3,960,989
Community Development 1,336,693
Community Services 218,243
Total Depreciation Expense $ 6,691,897
6) CHANGES IN LONG-TERM LIABILITIES
The following is a summary of long-term liability activity, all of which are funded by the General Fund, for the year ended June 30, 2022.
Governmental Activities:
Total OPEB Liability
Net Pension Liability
Compensated Absences
Total
Beginning Ending Due Within Due Beyond
Balance Additions Deletions Balance One Year One Year
2,322,438 353,885 - 2,676,323 - 2,676,323
6,632,698 - 3,404,376 2,128,323 - 2,128,323
478,604 47,062 - 525,666 82,156 443, 510
$ 8,333,740 $ 400,947 $ 3,404,375 $ 5,330,312 $ 82,156 $ 5,248,166 44 71
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
6) CHANGES IN LONG-TERM LIABILITIES -Continued
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation time. The balance of unpaid vacation time is reported as a liability in the statement of net position. This liability is primarily liquidated by the General Fund.
7) FIDUCIARY FUND LONG-TERM DEBT
The following is a summary of long-term debt activity for the City's fiduciaryfund for the year ended June 30, 2022:
Beginning
Ending
Due Within
Due Beyond
Balance Additions
Deletions
Balance
One Year
One Year
Tax Allocation Bonds:
1998
$ 295,000 $ -
$ 30,000
$ 265,000
$ 30,000
$ 235,000
2004
1,490.000 -
50,000
1,440,000
50,000
1,390,000
2010
4, 970, 000 -
125,000
4,845,000
135,000
4,710,000
Unamortized Premium
16,516 -
825
15,691
825
14.866
Total
$ 6,771,516 $ -
$ 205,825
$ 6,565,691
$ 216,825
$ 6,349,866
1998 Tax Allocation Bonds
In 1998, the Yucaipa Redevelopment Agency issued $720,000 of 1998 Tax Allocation Bonds. The proceeds were used to finance various improvement projects throughout the Agency. The bonds are payable exclusively from tax revenues allocated to the Agency. The 1998 Bonds consist of $720,000 of term bonds. The bonds accrue interest at rates between 4.00% and 5.60% and are payable semiannually on March 1 and September 1 of each year commencing September 1, 1998. Principal on the bonds is payable in amounts ranging from $15,000 to $50,000 and in annual installments commencing on March 1, 1998 and ending September 1, 2028. Future debt service requirements are as follows:
Fiscal Year Ending
June 30,
Principal
Interest
Total
2023
$ 30,000
$ 13,750 $
43,750
2024
30,000
12,100
42,100
2025
30,000
10,450
40,450
2026
35,000
8,662
43,662
2027
45,000
6,463
51,463
2028
45,000
3,987
48,987
2029
60,000
1.375
51,375
Totals
$ 265,000
$ 56,787 $
321,787
2004 Tax Allocation Bonds
On October 12, 2004, the Yucaipa Redevelopment Agency issued $2,500,000 of 2004 Tax Allocation Bonds.
The proceeds were used to finance various improvement projects throughout the Agency. The bonds are payable exclusively from pledged tax revenues. The 2004 Bonds consist of $2,500,000 of term bonds. 45 72
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
7) FIDUCIARY FUND LONG-TERM DEBT -Continued
The bonds accrue interest rates between 2.10% and 5.00% and are payable semiannually on March 1 and September 1 of each year commencing March 1, 2005. Principal on the bonds is payable in amounts ranging from $30,000 to $170,000 and is payable in semi-annual installments commencing on March 1, 2005 and ending September 1, 2034. Future debt service requirements are as follows, Fiscal Year Ending
June 30,
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Totals
2010 Tax Allocation Bonds
Principal
Interest
Total
$ 50,000
$ 69,407
$ 119,407
55,000
67,011
122,011
60,000
64,329
124,329
85,000
60.900
145,900
85,000
56,862
141,862
90,000
52,650
142,650
90,000
48,263
138,263
145,000
42,534
187.534
150,000
35,250
185,250
155,000
27,625
182,625
160,000
19,750
179,750
170,000
11,500
181,500
145,000
3,625
148,625
$ 1,440,000
$ 559,706
$ 1,999,706
On November 2, 2010, the Yucaipa Redevelopment Agency issued $6,030,000 of 2010 Tax Allocation Bonds.
The proceeds are t❑ be used to finance various improvement projects throughout the project area and are payable exclusively from pledged tax revenue. The 2010 Tax Allocation Bonds consisted of $6,030,000 of term bonds.
The bonds accrue interest at rates between 4.00% and 5.50°/a and are payable semiannually on March 1 and September 1 of each year commencing March 1, 2011. Principal on the bonds is payable in amounts ranging from $85,000 to $525,000 and is payable in annual installments commencing on September 1, 2011 and ending September 1, 2040. The outstanding balance at June 30, 2022 was $4,845,000.
Future debt service requirements are as follows:
Fiscal Year Ending
June 30,
Principal
Interest
Total
2023
$ 136,000
$ 254,442
$ 389,442
2024
140,000
248,390
388,390
2025
145,000
241,833
386,833
2026
125,000
235,378
360,378
2027
125,000
229,206
354,206
2028-2032
775,000
1,036,706
1,810,706
2033-2037
1,450,000
770,572
2,220,572
2038-2041
1,950,000
221,375
2,171,375
$ 4,845,000
$ 3,236,902
$ 8,081,902
46 73
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
B) PENSION PLAN
General Information about the Defined Benefit Pension Plan Plan Description —All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost -Sharing Multiple -Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees' Retirement System (CalPERS,) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all others). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 6& Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City of Yucaipa sponsors 2 rate plans (both are miscellaneous). Benefit provisions under the Plan are established by State statute and City resolution_ CaIPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website,
Benefits Provided — The Plan is a cost -sharing multiple -employer defined benefit pension plan administered by the California Public Employees' Retirement System (CalPERS)_ A full description of the pension plan benefit provisions, assumptions for funding purposes but not accounting purposes, and membership information is listed in the June 30, 2020 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2020 actuarial valuation report. This report is a publicly available valuation report that can be obtained at CalPERS' website under Forms and Publications.
The Plan's provisions and benefits in effect at June 30, 2022, are summarized as follows:
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Miscellaneous
Prior to
Miscellaneous
PEPRA
On or afte r
January 1, 2013 January 1, 2013
2% Qa 55 2% Qa 62
5 years service 5 years service
monthly for life monthly for life
55 62
2% 2%
7% 7, 25%
11.60% + $409, 707 7.73% + $6, $60
Contributions — Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CaIPERS. 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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees, Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund. The dollar amounts are billed on a monthly basis. 47 74
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
8) PENSION PLAN - Continued
The City's required contribution for the unfunded liability and side fund was $416,567 in fiscal year 2022. The City's contributions to the Plan for the year ended June 30, 2022 were $1,056,163_ Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan of $2.128,323. The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.
The City's proportionate share of the net pension liability as of June 30, 2020, and 2021 was as follows:
Proportion - June 30, 2020
Proportion - June 30, 2021
Change - Increase (Decrease)
0,05085%
0.03935%
-0.01150%
For the year ended June 30, 2022, the City recognized a pension credit of $389,841. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Pension contributions subsequent to measurement date
Differences between actual and expected experience
Changes in assumptions
Change in employer's proportion
Differences between employer's contributions and
employer's proportionate share of contributions
Net differences between projected and actual
earnings on plan investments
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 1,056,163
238,669
196,840
4,242 149,666
1,857,913
$ 1,495,914 $ 2,007,579
$1,066,163 reported as deferred outflows related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:
Year Ending
June 30,
Amount
2023
$ (309,980)
2024
(344,206)
2025
(400,209)
2026
(513,433)
48 75
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
8) PENSION PLAN -Continued
Actuarial Assumptions — The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:
Valuation date
June 30, 2020
Measurement date
June 30, 2021
Actuarial cost method
entry -age normal
Actuarial assumptions:
Discount rate
7.15%
Inflation
2.50%
Projected salary increase
(1)
Investment rate of return
7.15%
Mortality
(2)
(1) Depending on age, service and type of employment
(2) Derived using CaIPERS' Membership Data for all Funds.
The mortality table used was developed based an CalP E RS -specific data. The probabilities of mortality are based on the 2017 CaIPERS Experience Study for the period from 1997 to 2015. Pre -retirement and Post - retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CAPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
Long-term Expected Rate of Return - The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund.
The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:
New Strategic
Asset Class Allocation
Global Equity 50%
Global Fixed Income 28%
Inflation Assets -
Private Equity 8%
Real Assets 13%
Liquidity 1 %
(1) An expected inflation of 2.0% used for this period. (2) An expected inflation of 2.92% used for this period.
Real Return
Years 1 - 10 (1)
4,80%
1.00%
0.77 %
6.30%
3.75%
Real Return
Years 11+ (2)
5.98%
2.62%
1.81%
7.23%
4,93%
0.92%
49 76
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
8) PENSION PLAN - Continued
Discount Rate — The discount rate used to measure the total pension liability for PERF C was 7.15%, 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 CaIPERS 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 CaIPERS 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, which will be used in the City's June 30, 2023 financial statements.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate'
1 % Decrease 6.15%
Net Pension Liabilityl(Asset) $ 5,913,011
Current Discount Rate 7.15%
Net Pension Liabilityl(Asset) $ 2,128, 323
1% Increase 8.15%
Net Pension Liabilityl(Asset) $ (100.424)
Pension Plan Fiduciary Net Position — Detailed information about each pension plan's fiduciary net position is available in the separately issued CaIPERS financial reports. 56 77
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
8) OTHER POSTEMPLOYMENT BENEFITS
General Information About the OPEB Plan
Plan Description - The City provides the same medical plans to retirees and surviving spouses as to its active employees, with the exception that once a retiree becomes eligible for Medicare, he or she must join a Medicare HMO or a Medicare Supplement plan, with Medicare becoming the primary payer. The plan is a single -employer defined benefit post -employment healthcare benefits plan.
Benefits Provided - Employees are eligible for retiree health benefits if they retire from the City on or after age 50 and 5 years of service (age 52 for Miscellaneous PEPRA employees), and continue health insurance through a City -sponsored health insurance plan, the City will contribute the minimum monthly amount (as required by CAPERS) of the health insurance premium ($143 and $149 for the calendar years 2021 and 2022 respectively).
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. The City's health plan does not issue a publicly available financial report.
Employees Covered by Benefit Terms — As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:
Retirees or spouses of retirees
currently receiving benefits 17
Active employees 50
67 Contributions — The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contributions to the Plan are based on the costs to provide the benefits as described above on a pay as you go basis. For the fiscal year ended June 30, 2022, the City's pay-as-you-go costs were $28,747 and an implicit subsidy of $19,994.
Total OPEB Liability -The City's total OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions:
Valuation Date
June 30, 2021
Actuarial Cost Method
Entry Age, Level Percent of Pay
Mortality
CaIPERS 2000-2019 Experience Study
Age at Retirement
60 Health Care Trend Rate
6.50% for 2021; 6.00% for 2022, ultimate rate of 4.50% for 2031 and later years
Inflation Rate
3.00%
Salary Changes
3,00%
Discount Rate
1.92% - Bond Buyer 20-Bond GO index: June 30, 2021
2,45% - Bond Buyer 20-Bond GO index: June 30, 2020
Medical CPI
3.50% - used to project PERS statutory minimum benefit
Discount Rate -The discount rate used to measure the total OPEB liability was 1.92 percent and is based on the Bond Buyer 20-Bond GO index.
51 78
City of Yucaipa
Notes to Financial Statements
Year Ended .dune 30, 2022
9) OTHER POSTEMPLOYMENT BENEFITS - Continued
Changes in the Total OPEB Liability
Balance at June 30, 2021 (June 30, 2020 measurement date) Changes in the year:
Service cost
Interest on the total OPEB liability
Changes in assumptions or other inputs
Difference between expected and actual
experience, changes of assumptions
Benefit payments, including implicit subsidy
Netchanges
Balance at June 30, 2022 (June 30, 2021 measurement date) Total OPEB
Liability (TOL)
$ 2.322,438
154,728
60,116
224,819
(38, 585)
(47,193)
353,885
$ 2,676, 323
Sensitivity of the Total OPEB Liability to changes in the Discount Rate - The following presents the total OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-paint lower or 1- percentage-point higher than the current discount rate:
1% Decrease
(0.92%)
Discount Rate
(1.92%)
1% Increase
(2.92%)
Total OPEB liability $ 3,104.435 $ 2,676,323 $ 2,335,505 Sensitivity of the Net OPEB Liability to changes in the Healthcare Cost Trend Rates - The following presents the net OPEB liability of the City, as well as what the City's Net OPEB would be it it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate.-
1% Decrease Current Rates 1% Increase
Total OPEB liability $ 2,300,736 $ 2,676,323 $ 3,156,725 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB - For the year ended June 30, 2022, the City recognized OPEB expense of $283,808. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB Contributions Subsequent to the Measurement Date $ 49,882 $ - Differences Between Expected and Actual Experience - 57,522 Changes in Assumptions or Other Inputs 457,340 -
Total $ 507.222 $ 57,522
The $49,882 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ended June 30, 2023. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
52 79
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
9) OTHER POSTEMPLOYMENT BENEFITS - Continued
Year Ending
June 30,
Amount
2023
$ 68,964
2024
68,964
2025
68,964
2026
68,964
2027
63,097
Thereafter
60,865
10)SUMMARY DISCLOSURE OF SELF-INSURANCE CONTINGENCIES
The City maintains self-insurance programs for workers' compensation, general and auto liability. Claims are processed by an independent third -party claims administrator. The general and auto liability programs provide for self-insurance up to a maximum of $50,000 per incident. Claims which exceed the limit are insured by the California Intergovernmental Risk Authority (LIRA), a joint powers authority of California municipalities, up to a maximum $15,000,000 per incident.
The membership of LIRA consists of thirty-seven California cities. The primary purpose of CIRA is to provide coverage for losses from tort liability, workers' compensation, health benefits, and the ownership or use of real and personal property. A representative from each member city, appointed to the position by their City Council, serves on the Governing Board of the Authority. Each member of the Board has an equal vote in matters concerning the Authority.
The City also participates in CIRA's workers' compensation program, The program operates as a partially self - insured program, which is combined with joint -purchased commercial excess insurance. Participants' losses are pooled to the programs' self -insured retention of $250,000 then the commercial excess insurance attaches and provides coverage to statutory limits.
Included in the accrued claims of the Internal Service Fund is an estimated liability for claims filed, as calculated by the City's third -party claims administrator, but not paid, in the amount of $75,000 for general and auto liability claims.
Fiscal Claims Payable
Year Beginning of Year
Claims Payable
Additions deletions End of Year
6/30/22 $ 75,000 $ 297,918 $ (108,096) $ 264,822
6/30/21 75,000 139,513 (139,513) 75,000
6/30120 75,000 114,831 (114, 831) 75,000
During the past three fiscal years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability covered from coverage in the prior year.
11) DEVELOPMENT IMPACT FEES
The City of Yucaipa collects development impact fees for the construction of new development in accordance with the State Government Code. Normally, the City collects the development impact fees at the time building permits are issued. City policy allows builders to defer fees until the issuance of certificates of occupancy. The City secures the deferral of such fees by putting liens on the properties. The liens are then released when payment of the fees is received.
53 80
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
11) DEVELOPMENT IMPACT FEES - Continued
As of June 30, 2022, deferral fees owed to the City for all types of development impact fees totaled approximately $219,941.
The City development impact fee ordinances allow for the entering of agreements with developers for the construction of improvements identified to be paid for such fees. Through such agreements, the developer constructs certain public improvements and is given credit for the value of the improvements to offset developer fees due from the developer.
12) COMMUNITY FACILITIES DISTRICT NO.98-1 (CHAPMAN HEIGHTS) During the 1998-99 fiscal year the Community Facilities District No. 98-1 of the City of Yucaipa (Chapman Heights) (CFD) was formed. The District was formed to finance a portion of the costs associated with the construction of certain public facilities including streets, utilities, parks, landscaping and other infrastructure improvements within the Chapman Heights project. These other improvements include improvements to water and sewer facilities, which will be owned and operated by the Yucaipa Valley Water District, and certain storm drainage facilities which will be owned and operated by the San Bernardino County Flood Control District.
The City has entered into joint community facilities agreements with the Flood Control District and the Water District whereby proceeds from the sale of Bonds will be used for the acquisition of the facilities as discussed above. On March 9, 1999, the CFD issued $17.500,000 of bonds for the purpose of constructing infrastructure as discussed above. The 1998 Special Tax Bonds are authorized pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, and are payable from certain special taxes to be levied on property within CFD 98-1 (Chapman Heights) of the City of Yucaipa, according to the Rate and Method of Apportionment of Special Tax approved by the voters within the district and by the City Council of the City. In June 2002, the CFD issued an additional $5,800.000 in bonds. In July 2003, the CFD issued an additional $6,700,000 in bonds.
In November 2011, the City issued $28 million in Special Tax Refunding Bonds, to refund the 1999, 2002 and 2003 CFD Bonds, The principal balance outstanding on the 2011 Refunding Bonds as of June 30. 2022 is $15,610,000. Neither the faith and credit nor the taxing power of the City, the County of San Bernardino, the State of California or any political subdivision thereof is pledged to the payment of the bonds. Except for the special taxes, no other taxes are pledged to the payment of the bonds. The bonds are not general obligations of the City or County or general obligations of the District, but are limited obligations of the District payable solely from the special taxes as described in the official bond documents. 13) COMMITMENTS AND CONTINGENCIES
The City has contracts with the County of San Bernardino for various services, most notably law enforcement.
These service contracts are renegotiated annually and cancelable by the City or the County. These are based on an hourly rate and may be adjusted throughout the fiscal year.
The City is involved as a defendant in various legal proceedings. While it is not feasible to predict or determine the outcome in these cases, it is the opinion of the City that the outcome will have no material adverse effect on the financial position of the City.
The City has received State and Federal funds that are subject to review and audit by the grantor agencies. Such audits could generate expenditure disallowances under terms of the grants; however, it is believed that any such reimbursements will not be significant.
Remaining commitments on construction contracts at year-end were $1,633,376. 54 81
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
14) FUND BALANCE
The City implemented GASB Statement No. 54, Fund Balance Reporting and Govemmental Fund Type Definitions as of June 30, 2011. Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The City 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 City 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 - Amounts that cannot be spent either because they are in nonspendable form or are required to be maintained intact.
Restricted Fund Balance - Amounts that are constrained to specific purposes by state or federal laws, or externally imposed conditions by grantors or creditors.
Committed Fund Balance -Amounts that may be specified by the City Council by ordinance to formally commit part of the City's fund balances or future revenues for a specific purpose(s) or program. To change or repeal any such commitment will require an additional formal City Council action utilizing the same type of action that was originally used.
The City's committed fund balance includes:
• General Fund Emergency Operating Contingency:
Fund balance in the General Fund has been committed for emergency contingencies, as set by resolution, and is specifically for severe economic emergencies defined as a state or federal state of emergency, or declaration of a local emergency as defined in the City of Yucaipa Municipal Code Section 8.36.030. In fiscal year 2022, the contingency has been 20% of the General Fund operating budget. In fiscal year,2023, this percentage will increase to 30%.
• Economic Stabilization Contingency:
Fund balance in the General Fund has been committed for economic stabilization contingencies, set by resolution in the amount of $1,000,000, and is available specifically for use in an event of severe fiscal hardship or instability, defined as any fiscal year in which actual General Fund revenue is at least 30% less than budgeted General Fund revenue.
+ OPE R.
Fund balance in the General Fund has been committed to pay for retiree health benefits, until they become eligible under Medicare.
• Fire Protection:
Fund Balance in the General Fund has been committed to fire protection services. Fire is accounted for separately by the City internally, but rolls up into the General Fund. This commitment is the fund balance of this internal fund balance.
Assigned Fund Balance - Amounts that are constrained by the City Council's intent to use specified financial resources for specific purposes, but are neither restricted nor committed. The City's fund balance policy delegates the authority to assign amounts to be used for specific purposes to the City Manager, or his designee.
Unassigned Fund Balance - These are either residual positive net resources of fund balance in excess of what can properly be classified in one of the other four categories, or negative balances. 55 82
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
14� FUND BALANCE - Continued
The City's governmental fund balances at June 30, 2022, are presented below:
Miscellaneous
Developer
Developer
Developer
Non -major
General
Speclal
Fees Pubtio
Fees
Fees
Governmental
Fund
Measure I Revenue Fund
Facilities Fund
Parks
Drainage
Funds
Total
Nonspendable:
Advances to Other Funds
$22.774,870
$ S _
$
$
$ -
$
$22.774,870
Prepaids
154,812
31,471
-
3,017
189,300
Restricted fo r
Capital Projects
-
- 658,416
-
a,312
666,728
Public WorksiStreet Projects
1.590,308 -
-
1,730.147
3.320,455
Public Safety
-
- -
-
-
1.290.274
1,290,274
Landscape & Lighting
-
-
2.818.781
2,818,751
Community SeMces/Education
-
-
-
1.371,047
1.371,047
Committed to:
Emergency Contingency
6,358,362
_
_
_
$,34a,362
Economic Stabilization
1.000,000
- -
-
-
1,000,000
OPEB
559.541
-
-
-
-
559,541
Fire Protection
9.320,060
_
_
9,g20,480
Assigned to'
Capital Projects
-
-
7.273.590
7.273.590
Unassigned
10,701,774
-
(12,020,470)
(4,08s,214)
(1,948,271)
(7,390,947)
(14,664,128)
Total Fund Balances
$50.949,419
$ 1.590.308 $ 658AIS
${i1,988,999)
$(4,080,214)
$(1,946,271)
$ 7,104,221
$42,278,660
15) ACCUMULATED FUND DEFICITS
At June 30, 2022, the following funds had deficit fund balances:
Major Funds - Capital Projects
Developer Fees Public Facilities
(11.988,999)
Developer Fees Parks
(4,088,214)
Developer Fees Drainage
(1,948,271)
Non -major Funds
Housing Authority
(80,118)
Miscellaneous Capital Projects
(401,187)
CaBG Capital
(133,582)
Air Quality Improvement
(1,302)
TDA Article 3
(89,728)
Traffic Facilities
(2,176,405)
Developer Impact Fees Fire
(2,143,164)
Low Water Crossings
(21385,461)
Management's explanations for the resolution of accumulated fund deficits in the funds are summarized as follows:
Developer Impact Fees Public Facilities Fund - The deficit fund balance is the result of cash flow advances made from the General Fund for the construction of various public facilities, In accordance with the interfund borrowing agreement, the advances are repaid as development impact fees are received in the fund.
Develooer Impact Fees Parks Fund - The deficit fund balance is the result of cash flow advances made from the General Fund for the construction of Community Park. In accordance with the interfund borrowing agreement, the advances are repaid as development impact fees are received in the fund_ 55 83
City of Yucaipa
Notes to Financial Statements
Year Ended June 30, 2022
16) ACCUMULATED FUND DEFICITS - continued
Developer Fees Drainage Fund - The deficit fund balance is the result of cash flow advances made from the General Fund, Advances made to this fund were for the construction of regional drainage projects. In accordance with the interfund borrowing agreement, the advances are repaid as development impact fees are received in the fund.
Developer Fees Fire Fund - The deficit fund balance is the result of cash flow advances made from the General Fund, for the construction of Fire Station #3, In accordance with the interfund borrowing agreement, the advances are repaid as development impact fees are received in the fund.
Low Water Crossings Fund - The deficit fund balance is the result of cash flow advances made from the General Fund. The advances are repaid as funding is received.
Other deficits will be funded by future revenues and/or transfers as deemed necessary, 57 84
REQUIRED SUPPLEMENTARY INFORMATION
85 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2022
Schedule of the City's Proportionate Share of the Net Pension Liability Last10 Years
Proportionate
Plan Fiduciary
Proportion of Proportionate Share of the Net
Net Position as
the Net Pension Share of Net Covered Pension Liability
a % of the Total
Measurement Date Liability Pension Liability Payroll as a % of Payroll Pension Liability
2021
0.03935% $
2,128, 323
$ 4,304,091
49.45%
92.58%
2020
0.05085%
5,532,698
4,475,311
123.E %
79.11 %
2019
0.04851 °/a
4,971,001
4,036,015
123.17%
79.66%
2018
0.04836%
4,660, 507
3,643,825
127.90%
79, 39%
2017
0.04945%
4,904,437
3,496,726
140.26%
77,14%
2016
0.04759%
4,117,708
3,362,231
122.47%
78.21°/a
2015
0.04376%
3,003,608
3,081,312
97.48%
83.14%
2014
0.04583%
2,851,633
2,970,681
95.99%
75.28%
Notes to the Schedule of the City's Proportionate Share of the Net Pension Liability Benefit Changes: None
Changes in Assumptions: In 2017, the accounting discount rate changed from 7.65% to 7.15%. *Fiscal year 2015 was the first year of implementation, therefore, 10 years of information are not yet available. 58 86
City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2022
Schedule of Plan Contributions
Last 10 Years"'
Contributions in
Relation to the
Contractually Actuarially
Required ❑etermined
Fiscal Year Contributions Contributions
2022
$ 856,580 $
(1,056,163) $
2021
750,096
(1,000,022)
2020
687,263
(687,263)
2019
614,613
(826, 891)
2018
502,982
(646,954)
2017
451,203
(451,203)
2016
416,057
(416,057)
2015
553,517
(553,517)
Contributions
Contribution
as a % of
Deficiency/
Covered
Covered
(Excess)
Payroll
Payroll
(199,583)
$ 4,920,339
21.47%
(249,926)
4,304,091
23.23%
-
4,475,311
15.36%
(212,278)
4,036,015
20,49%
(143,972)
3,643,825
17,75%
-
3.496,726
12,90%
-
3.362,231
12,37%
-
3,081,312
17.96%
Notes to the Schedule of Plan Contributions
Valuation Date; 6/30/2013, 6/30/2014, 6/30/2015, 6/30/2016, 6130/2017, 6/3012018, 613012019, 6/30/2020 "Fiscal year 2015 was the first year of implementation, therefore, not all 10 years of information are available. 59 87
City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2022
CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
Last 10 Years"
Total OPEB Liability
Service cost
Interest or total OPI=6 liability
Difference between expected and actual experience
Changes in assumptions
Benefit payments, including implicit subsidy
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending
Covered -employee payrtill
Total ODES liability as a percentage of
covered -ern ployee payroll
Measurement Period _
2021 2020 2019 2018 2017
$ 154,728 $
142.461
$ 119,792 $
102,354 $
99,373
60,116
65,155
63,678
50.657
46,820
(38, 585)
-
(39.127)
-
-
224, 819
196,730
189,572
(104, 868)
-
(47,193)
(41,605)
(26.360)
(28,231) (19,085)
353,885
362,541
307,555
19.912
127.108
2, 322,438
1.959.897
1,652.342
1,632,430
1,505, 322
$ 2,676,323 $
2,322,438
$ 1,959,897 $
1,662,342 $
1,632,430
$ 4,665,564 $ 5,131.471 $ 4,750.449 $ 3,643,825 $ 3,496,726
55.01 % 45.26% 41.26% 45.35% 46,68%
"Fiscal year 2018 was the first year of implementation; therefore, 10 years of information are not yet available.
Notes to Schedule:
No assets are accumulated in a trust that meets the criteria in GASBS No, 75, paragraph 4, to pay related benefits.
Benefit Changes: None
Changes in Assumptions: In fiscal year 2022, the accounting discount rate change from 2.45% to 1.92% 60 88
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Fund
Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Taxes --
Property Taxes
$ 11.835.563
$ 12,235.563
$ 12,712,240
$ 476,677
Sales and Use Taxes
4,300,000
5,027,131
5,299,433
272,302
Franchise Taxes
1,350,000
1,450,000
1,600,430
150.430
Documentary Transfer Tax
200,000
200,000
318.285
118,285
Other Taxes
21,600
21,600
23,658
2,058
Licenses and Permits
909,145
909,145
1,375,320
466,175
Fines and Forfeitures
257,346
257,346
309,093
51,747
Charges for Services
2,643,459
3,075,554
3,779,467
703,913
Intergovernmental
5,945,348
6.945,348
6,109,167
163,819
Investment Income
81,500
81,500
(267,615)
(349,115)
Other
175,250
175,250
398,730
223,480
Total Revenues
27,719,211
29,378,437
31.658,208
2.279,771
EXPENDITURES
Current;
General Government:
City Manager
1,144,743
1,144,743
875,218
269,525
City Council
67,585
67,585
66,435
1,150
General Services/City Clerk
377.003
377,083
348,381
28,702
Administrative Services
3,482,943
3,519,635
2,992,069
527,566
Non -departmental
378,608
378,608
287,775
90,833
Community Development
1,744,145
1,744,145
1,217,271
525.874
Building and Safety
552,043
552,043
1,163,594
(611,551)
Public Works
4,083,749
4,127,085
3,239,701
887,384
Public Safety -
Police Services
11,864,963
11,B64,963
11,009,776
855,187
Fire Protection Services
4,759,301
4,759,301
4,463,457
295,844
Community Services
3.293,655
3,811,090
3,230,233
580,857
Capital Outlay
510,082
470,082
358,528
111,554
Total Expenditures
32,258,900
32,816,363
29,262,438
3,563.925
Excess (Deficiency) of Revenues
over Expenditures
(4,539,689)
(3,437,926)
2,405,770
5,843,696
OTHER FINANCING SOURCES (USES)
Transfers In
1,845,437
1,845,437
3,193,612
1,348,175
Transfers Out
(3,845,215)
(3,845,215)
(7,021,839)
(3,176,624)
Total Other Financing Sources (Uses)
(1,999.778)
(1,999,778)
(3,828,227)
(1,828,449)
Net Change in Fund Balances
(6,539,467)
(5,437,704)
(1,422,457)
4,015,247
Fund Balances, Beginning of Year
52.371.876
52,371,876
52,371,876
-
Fund Balances, End of Year
$ 45,832,409
$ 46,934,172
$ 50,949,419
$ 4,015.247
61 89
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure I Special Revenue Fund
Year Ended June 30, 2022
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Intergovernmental
$ 1,112,700
$ 1,112,700
$ 1,427,021
$ 314,321
Investment Income
-
-
(36,313)
(36,313)
Total Revenues
1.112,700
1,112,700
1,390,708
278,008
OTHER FINANCING SOURCES (USES)
Transfers Out
(952,107)
(952,107)
(2,832,233)
(1,880,126)
Net Change in Fund Balances
160,593
160,593
(1,441,525)
(1,602,118)
Fund Balances, Beginning of Year
3,031,833
3,031,833
3,031.833
-
Fund Balances, End of Year
$ 3,192,426
$ 3.192,426
$ 1,690.308
$ L,602,118)
62 90
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Miscellaneous Special Revenue Fund
Year Ended June 30, 2022
REVENUES
Fines & Forfeitures
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
General Government
Community development
Public Works
Public Safety
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance, Beginning of Year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts Negative)
$ 12,800
$ 12,800
$ 17,011
$ 4,211
78,388
78,388
76,347
(2.041)
154,664
409,089
3,548,652
3,139,563
275
275
(45,084)
(45,359)
41,517
41,517
39,691
(1,826)
287,644
542,069
3,636,617
3,094,548
106,578
160,040
527,606
(367,566)
-
160,000
57,237
92,763
32,595
32,595
31,020
1,575
18,500
19,000
17,808
1,192
20,000
70,963
50,749
20,214
177,673 432,598 684,420 (251,822)
109,971 109,471 2,952,197 2,842,726
47,626 47,626
(3,815) (930,815) (3,462,054) (2,531,239)
(3,815) 930,815) (3,414,428) (2,463,613)
106,156 (821,344) (462,231) 359,113
1,120,647 1,120,647 1,120,647 -
Fund Balance, End of Year $ 1,226,803 $ 299,303 $ 658,416 $ 359,113 63 91
City of Yucaipa
Notes to Required Supplementary Information
Year Ended June 30, 2022
1. Budgetary Control and Accounting
The City Council approves each year's budget prior to the beginning of the fiscal year. Public hearings are conducted prior to its adoption by the Council. All supplemental appropriations, where required during the period, are also approved by the Council. Certain inter- and intra-departmental budget transfers are approved by management. In most cases, expenditures may not exceed appropriations at the departmental level within the General Fund and at the fund level for other funds. At fiscal year-end, all operating budget appropriations lapse.
The Fire Special Revenue fund activity and budget was incorporated into the General Fund.
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).
64 92
SUPPLEMENTARY INFORMATION
f
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Developer Fees Public Facilities Capital Projects Fund Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Charges for Services
$ 72,946
$ 72,946
$ 322,666
$ 249.720
Investment income
-
-
(968)
(968)
Other
50,000
50,000
10,000
{40.000)
Total Revenues
122,946
122,946
331,698
208.752
EXPENDITURES
Current
PubiicWorks
-
-
20,199
(20,199)
Capital Outlay
668,000
1,783,311
1,068.169
715,142
7otai Expenditures
668,000
1.783.311
1,088,368
694,943
Excess (Deficiency) of Revenues
over Expenditures
(545,054)
(1,660,365)
{766,870)
903.695
OTHER FINANCING SOURCES (USES)
Transfers In
1.000.000
1,000,000
770,000
(230,000)
Transfers Out
(64,664)
84,664
(52,962)
31,702
Total Other Financing Sources (Uses)
915,336
915,336
717,038
(198,298)
Net Change in Fund Balance
370.282
(745,029)
(39,632)
705,397
Fund Balance (Deficit), Beginning of Year (11.949.367) _ (11,949,367) (11,949,367� Fund Balance (Deficit), End of Year $ (11,579,085) $ (12,694,396) $ (11,988.9991 $ 705,397 65 94
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Developer Impact Fees Parks Capital Projects Fund Year Ended June 30, 2022
REVENUES
Charges For Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 118,820 $ 118,820 $ 847,363 $ 728,543
- - 21,398 21,398
- - (3,776) (3,776)
99,000 10,000 4,349 (5,661)
217,820 128,820 869,334 740,514
- - 35,124 (35,124)
529,000 2,227,621 1,116,096 1.112,425
529,000 2,227,521 1,150.220 1.077,301
(311,180) (2,098,701) (280,886) 1,817,815
699,000 1,222,900 1,177,728 (45,172)
(99,503) (114,503) (74,778) 39,725
Total Other Financing Sources (Uses) 499,497 1,108,397 1,102,950 (5,447) Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
188,317 (990,304) 822,064 1,812,368
(4,908,278) (4,908,275) (4,908,278) -
$ (4,719,961) $ (5,898,582) $ 4,086,214 $ 1,812,368
66 95
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Developer Fees Drainage Capita! Projects Fund Year Ended June 30, 2022
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Ori inal�
4... _.
_
Final
Amounts
+;Negative}
REVENUES
Charges for Services
$ 166,949
$ 166,949
$ 906,817
$ 739,868
Intergovernmental
3,508,000
3,685,750
2.329.663
(1,356,087)
Total Revenues
3,674,949
3,852.699
3.236,480
{616,219)
EXPENDITURES
Current:
Public Works
-
93,322
(93,322)
Capital Outlay
4,599.000
6,264,643
2,610,757
3,653,886
Total Expenditures
4,599.000
6,264,643
2,704,079
3,560,664
Excess (Deficiency) of Revenues
over Expenditures
924,051
2,411,944
532,401
2,944,345
OTHER FINANCING SOURCES (USES)
Transfers In
201,037
1,128,037
1,128,037
-
Transfers Out
(1,277,316)
(1,277,316)
(59,060)
1,218,256
Total Other Financing Sources (Uses)
(1,076.279)
(149,279)
1,068,977
1,218,256
Net Change in Fund Balance
(2,000,330)
(2,561,223)
1,601,378
4.162,601
Fund Balance (Deficit), Beginning of Year
(3,549,649)
(3,549,649)
(3,549,649)
-
Fund Balance (Deficit), End of Year
$ (5,549,979)
$ (6,110,872)
$ (1,948,271)
$ 4,162,601
67 96
NON -MAJOR GOVERNMENTAL FUNDS
N
City of Yucaipa
Combining Balance Sheet
Nan -Major Governmental Funds
June 30, 2022
ASSETS
Cash and Investments
Receivables:
Interest
Due From Other Governments
Due From Other Funds
Notes and Loans Receivable
Prepaid Items
Total Assets
LIABILITIES
Accounts Payable & Accrued Liabilities
Deposits Payable
Due to Other Funds
Advances From Other Funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable
Restricted
Assigned
Unassigned
Total Fund 8alanoes
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
Energy
Independence State
Gas Tax Program COPS Grant
$ 94,985 $ 269,227 $ 760,572
846 241 612
293,769 - 77,211
- 276,530 -
3,017 - -
$ 392.617 . $ _ 545,998 $ 838,395
$ 73,618 $ - $ 31,726
73,618 - 31.726
3,017 - -
315,982 545.998 806,669
318,999 545.998 806.669
$ 392,617 $ 545,998 $ 838.395
68 98
Special Revenue Capital Projects
Office of Miscellaneous
Traffic and Housing Capital CDBG
Safety LLMD Authority Paramedic PEG Video Projects Capital $ 129.828 $ 2,868,893 $ - $ 343,107 $ 821,309 $ 352,847 $ - 92 2,007 - - 577 256 -
- 3,593 - 13,632 23,193 20,781 331,497
$ 129,920 $ 2,874.493 $ - $ 356.739 $ 845,079 $ 373,884 $ 331,497 $ - $ 55,712 $ (2.270) $ 3,054 $ - $ 13,371 $ 86,988
- - - - 70C -
62, 388 - - 761,000 96.039
55,712 60.118 3,054 - 775,071 183,027
- - - 20,030 - 282,052
- 20,030 - 282, 052
129,920 2,818,781 - 353.685 825,049 -
(401.187) (133,582)
129,920 2,818,781 (60,118) 353,685 825,049 (401.187) (133.582) $ 129,920 $ 2,874,493 $ - $ 356.739 $ 825.049 $ 373.884 $ 331,497 Continued
69 99
City of Yucaipa
Combining Balance Sheet
Non -Major Governmental Funds (Continued)
June 30, 2022
Capital Projects
Air Pool
Quality Capital Street TDA
Improvement Replacement Maintenance Article 3
ASSETS
Cash and Investments
-
$
8,306
$
1.526,246
$ -
Receivables,
Interest
6 -
-
Due From Other Governments
99,820
-
-
89,728
Due From Other Funds
-
m
-
-
Notes and Loans Receivable
-
-
-
-
Prepaid Items
-
-
-
-
Total Assets
$ 99,820
$
8,312
$
1,526,246
$ 89,728
LIABILITIES
Accounts Payable
$ -
$
-
$
132.215
$ -
Deposits Payable
-
-
-
-
Due to Other Funds
19,600
-
-
89,728
Advances From Other Funds
-
-
-
-
Total Liabilities
19,600
-
132,215
89,728
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Land Sale
81,522
-
-
89,728
Total Deferred Inflows of Resources
81,522
-
-
89,728
FUND BALANCES
Nonspendable
-
-
_
-
Restricted
-
8,312
1,394,031
-
Assigned
-
-
-
-
Unassigned
(1,302)
-
-
(89,728)
Total Fund Balances
(1,302)
8,312
1,394,031
(89,728)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
$ 99,820
$
8,312
$
1,526,246
S 89,728
70 100
_ Capital Projects _
Developer Total Nonmajor
1-10 Traffic Impact Fees Facilities Low Water Governmental Specific Plan Facilities Fire Construction Crossings Funds $ 20,119 $ 228,564 $ 48,182 $ 6,603,881 $ - $ 14.076,066 15 115 188 3,314 - 8,269
- 169,716 - 90,000 - 1.212,940
- - 761,000 - 761,000
- - - - - 276,530
- - - - 3,017
$ 20.134. $ 398,395 $ 48,370 $ 7,458,195 $ 0 $ 16,337,822 $ - $ 1,537,370 $ - $ 184,605 $ 10,327 $ 2,126,716
- - - - - 700
- - - - 1,028,755
- 1,037.430 2,191,534 - 2,375.134 5.604,098
- 2,574,800 2,191,534 184,605 2,385,461 8,760,269
- - - - - 473,332
- - 473,332
- - - - - 3,017
20,134 - - - - 7, 218, 561
- - - 7.273.590 - 7,273,590
- 1 (2,176,405) (2,143,164) (2,385.461) (7,390,947)
20,134 1 (2,176,405) (2,143,164) 7,273,590 (2,385,461) 7.104.221 $ 20,134 $ 398.395 $ 48,370 $ 7,458,195 $ - $ 16, 337.822 71 101
City of Yucaipa
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nan -Major Governmental Funds
Year Ended June 30, 2022
REVENUES
Taxes;
Property Taxes
Franchise Taxes
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
General Government
Community Development
Public Works
Public Safety
Paramedic Services
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
Energy
Independence State
Gas Tax Program COPs Grant
2,438,904 - 238,540
(6,831) 57,880 (8,770)
12,020 - -
2,444,093 57,880 229,770
1,045,829 - -
- - 134,271
- 2,921 -
7,732 - -
1,053,561 2,921 134,271
1,390,532 54,959 95,499
(1,222,657) (77,830) -
(1,222,657) (77,830) -
167,875 (22,871) 95,499
151,124 568,869 711,170
$ 318,999 $ 545.998 $ 806,669
72 102
_ Special Revenue Capital Pro ects
Office of Miscellaneous
Traffic and Housing Capital CDBG
Safety LLMD Authority Paramedic PEG Video Projects Capital (1,366)
$ _ $ 1,090,114 $ - $ - $ -
- 72,112 -
702,986 - - - 49,133 -
- - - - 30,381 168,902
(27,715) - (2,921) (8,236) (3,745) (47)
(1,366) 675,271 - 1,087,193 63,876 75,769 158.855
51,427 -
436,482 - -
1,493,776
436,482 51,427 1,493,776
41,133 -
- 113,578
- 26,385
24,600 -
13,000
227.164
65,733 380,127
(1,366) 238,789 (51,427) (406,583) 63,876 10,036 (221,272) 809,378 - - 50,000
(91,823) - (49.110) (85) - (9,889)
- (91,823) - 760,268 (35) - 40,111
(1,366) 146,966 (51,427) 353,685 63,791 10,036 (181,161) 131,286 2,671,815 (8,691) - 761,258 (411,223) 47,579
$ 129,920 $ 2,818,781 $ (60,118) $ 353,685 $ 825,049 $ (401,187) $ (133,582) Continued
73 103
City of Yucaipa
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non -Major Governmental Funds (Continued) Year Ended June 30, 2022
REVENUES
Taxes:
Property Taxes
Franchise Taxes
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current.
General Government
Community Development
Public Works
Public Safety
Paramedic Services
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
Capital Projects
Air Pool
Quality Capital Street TDA
Improvement Replacement Maintenance Article 3
-
(87) (10) -
1,096,348 (87) 10 -
26,793
1,163, 323
1,190,116
43,696
3,072.872 -
3,116, 568 -
(93,768) (87) (3,116,578) -
353,000 - 4,786,926
(4,665) - (276,317) (89,728)
348,335 - 4,510,609 (89,728)
254,567 (87) 1,394,031 (89,728)
(255,869) 8,399 - -
$ (1,302) $ 8,312 $ 1,394,031 $ (89,728)
74 104
Capital Projects
Developer Total Nonmajor
1-10 Traffic Impact Fees Facilities Law Water Governmental Specific Plan Facilities Fire Construction Crossings Funds $ - $ - $ - $ - $ - $ 1. 090,114
- - - 72,112
2,107,016 199,687 - - 3,058,822
285,660 - 135,000 86,254 4,469,989
(223) (3,674) (2,320) (49,154) - (57,219)
- - - - - 12,020
(223) 2,389.002 197,367 85,846 86,264 8,645,838
71,843
3,845,541
3,917,384
(223) (1,528,382)
92,560
- 113,578
- 172,297 1,823,325
- 158,871
- - 1,493,776
21,340 - 37,261
335,424 520,976 9,173,032
- 356,764 693,273 12,892,403
197,367 (270,918) (607,019) (4,246,565)
-
12,000
-
2,609,000
200,000
8,820,304
(1,097)
(105,366)
(136,231)
(513,757)
(3,826)
2,581,381)
(1,097)
(93,366)
(135,231)
2,095,243
196,174
6,238,923
(1,320)
(1,621,748)
62,136
1,824,325
(410,845)
1,992,358
21,454
(554,657)
(2,205,300)
5,449,265
(1,974,616)
5,111,863
$ 20,134
$ (2,176,405)
$ (2,143.154}
$ 7,273, 594
$ {2, 385,461)
$ 7,104,221
75 105
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2022
REVENUES
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
Excess (deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts —(Negative)
$ 1,355,990 $ 2,438,904 $ 1,082,914
1,600 (6,831) (8,431)
10,000 12,020 2,020
1,367,590 2,444,093 1,076,503
1,355,086 1,045,829 309,257
9,000 7,732 1,268
1,364,086 1,053,561 310,525
3,504 1,390,532 1,387,028
75,619 - (75,619)
(1,222,657) (1,222.657) -
(1,147,038) (1,222,657) (75,619)
(1,143,534) 167,875 1,311,409
151,124 151,124 -
$ (992,410) $ 318,999 $ 1,311,409
76 106
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Energy Independence Program Special Revenue Fund Year Ended June 30, 2022
REVENUES
Investment Income
EXPENDITURES
Current:
Community Services
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES):
Transfers Out
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final
Final Budget
Budgeted
Actual
Positive
Amounts
Amounts
(Negative)
$ 77,830
$ 57,880
$ (19,950)
-
2,921
(2,921)
77,830
64,959
(22,871)
(77,830)(77,830) -
- (22,871) (22,871)
568,869 568,869 -
$ 568,869 $ 545,998 $ (22,871
77 107
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - State CGPs Grant Special Revenue Fund Year Ended June 30, 2022
REVENUES
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Current:
Public Safety
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final Final Budget
Budgeted ,actual Positive
Amounts Amounts (Negative)
$ 175,000 $ 238,540 $ 63,540
- (8,770) (8,770)
175.000 229,770 54,770
175,000 134,271 40,729
- 95,499 95,499
711,170 711,170 -
$ 711,170 $ 806,669 $ 95,499
76 108
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Office of Traffic and Safety Special Revenue Fund Year Ended .dune 30, 2022
REVENUES
Investment Income
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative_
$ - $ _ (1,366) $ 1,366
(1,366) (1,366)
131,286 131,286
$ 131,286 $ 129,920 $ (1,366)
79 109
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - LLMD Special Revenue Fund
Year Ended June 30, 2022
REVENUES
Charges for Services
Investment Income
Total Revenues
EXPENDITURES
Current:
Public Works
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers Out
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ 910,427 $ 702,986 $ (207,441)
- (27,715) (27.715)
910,427 675,271 (235.166)
832,204 436,482 395,722
78,223 238,789 160,566
(91.823) (91,823)
(13,600) 146,966
160,566
2,671.815 2.671,815 -
$ 2,668,215 $ 2.818,781 $ 160,566
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Housing Authority Special Revenue Fund Year Ended June 30, 2022
EXPENDITURES
Current.
Community Development
Net Change in Fund Balance
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 67.115 $ 51,427 $ 15,688
(67,115) (51,427) 15,688
(8,691) (8,691)
$ (75,806) $ (60,118) $ 15,688
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Paramedic Special Revenue Fund
Year Ended .tune 30, 2022
REVENUES
Property Taxes
Investment Income
Total Revenues
EXPENDITURES
Current:
Paramedic Services
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 1,104,500 $ 1,090,114 $ (14,386)
(2,92112( 9211
1,104,500 1,087,193 (17,307)
1,864,768 1,493,776 370,992
760,268) (406,583� 353,685
809,378
809,378 -
(49,110)
(49,110) -
809,378
760,268 _ -
49,110
353,685 353,685
$ 49,110 $ 353,685 $ 304,575
82 112
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - PEG Video Special Revenue Fund
Year Ended June 30, 2022
REVENUES
Franchises Taxes
Investment Income
Total Revenues
OTHER FINANCING SOURCES (USES)
Transfers Out
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 100.500 $ 72,112 $ (28,388)
- (8,236} (8.236)
100,500 63,876 (36,624)
(85) ($6)
100,500 63,791
761,258 761,258
(36,709)
$ 861,758 $ 825,049 $ (36,709)
83 113
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Miscellaneous Capital Projects Fund Year Ended June 30, 2022
REVENUES
Intergovernmental
Investment Income
Charges for Services
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Total Expenditures
Net Change in Fund Balances
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 35,400 $ 30,381 $ (5,019)
- (3,745) (3,745)
44,578 49,133 4,555
79,978 75,769 _ (4,209)
55,649 41,133 14,516
35,400 24,600 10,800
91,049 65,733 25,316
(11,071) 10,036 21,107
(411,223) (411,223) -
$ (422,294) $ (401,187) $ 21,107
94 114
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CDBG Capital Projects Fund
Year Ended June 30, 2022
REVENUES
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Current,
Community Development
Public Works
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts Negative)
$ 750,112 $ 158,902 $ (591,210)
- (47) (47)
750,112 158,855 (591,257)
255.786
113,578
142,208
-
26,385
(26,385)
41,326
13,000
28,326
660,702
227,164
433,538
957,814
380.127
577,687
(207,702) (221,272) (13,570)
50,000 50,000 -
(18,982) (9,889) 9,093
31,018 40,111 9,093
(176,684) (181,161) (4,477)
47,579 47,579 -
$ (129,105) $ (133,582) $ (4,4771
85 115
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Air Quality Improvement Capital Projects Fund Year Ended June 30, 2022
REVENUES
Intergovernmental
EXPENDITURES
Current:
Public Worms
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative_
$ 2,207,000 $ 1,096,348 $ Q,110,652)
- 26,793
(26,793)
2,039,000 1,163,323
875,677
2,039,000 1,190.116
848,884
168,000 (93,768) (261,768)
140,000
353,000
213,000
(101,430)
(4,665)
96,765
38,570
348,335
309,765
206,570
254,567
47,997
(255,869) (255,869) -
$ (49,299) $ (1,302) $ 47,997
86 116
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Pool Capital Replacement Capital Projects Fund Year Ended June 30, 2022
REVENUES
Investment Income
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ - $ (87) $ (87)
(87) (87)
8,399 8,399
$ 8,399 $ 8,312 $ (87)
87 117
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Street Maintenance Capital Projects Fund Year Ended June 30, 2022
REVENUES
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), Erd of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 170,000 - $ (170, 000)
(10) (10)
170,000 (10) (170,010)
- 43,696
(43,696)
3,416,319 3,072,872
343,447
3,416,319 3,116.568
299,751
3,246,319 (3,116,578) _ 129,741
2,906,800 4,786,926 1,880,126
(36.317) (276,317) (240,000)
2,870,483 4,510,609 1,640,126
(375,836) 1,394,031 1,769,867
$ (376,836} $ 1,394,031 $ 1,769,867
88 118
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - TDA Article 3 Capital Projects Fund Year Ended June 30, 2022
OTHER FINANCING SOURCES (USES)
Transfers Out
Net Change in Fund Balance
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ - $ (89,728) $ (89,728)
(89,728) (89,728)
(89,728) $ (89,728)
89 119
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -1-10 Specific Plan Capital Projects Fund Year Ended June 30, 2022
REVENUES
Investment Income
EXPENDITURES
Current:
Public Works
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers Out
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ - $ (223) $ (223)
700 -
(700) (223)
700
477
(1,097) (1,097) -
(1,797) (1,320) 477
21,454 21,454 -
$ 19,657 $ 20,134 $ 477
90 120
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Traffic Facilities Fund
Year Ended June 30, 2022
REVENUES
Charges far Services
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ 450,320 $ 2,107,016 $ 1,656,696
4,700,000 285,660 (4,414,340)
- (3,674) (3,674)
5,160,320 2,389,002 (2,761,318)
- 71,843 (71,843)
11,094.836 3,845,541 7,249,294
11,094,836 3,917,384 7,177,451
(5,944,515) (1,628,382) 4,416,133
12,000 12,000 -
(371.,032). _ _(105,366). 265.660
(359,032) (93,360) 265,666
(6,303,547) (1,621,748) 4,681,799
(554,657) . (554,657) -
$ (6,858,204) $ (2,176,405) $ 4,681,799
91 121
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - ❑eveloper Impact Fees Fire Capital Projects Fund Year Ended June 30, 2022
REVENUES
Charges for Services
Investment Income
Total Revenues
OTHER FINANCING SOURCES (USES)
Transfers Out
Net Change in Fund Balances
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 42,534 $ 199,687 $ 157,153
- (2,320) (2,320)
42,534 197,367 154,833
(135,231)
(135,231) -
(92.697)
62,136 154.833
(2,205,300)
(2,205,300) -
$ (2,297,997)
$ (g,143,164) $ 154,833
92 122
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Facilities Construction Fund
Year landed June 30, 2022
REVENUES
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Current:
Community Services
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Variance with
Final
Final Budget
Budgeted
Actual Positive
Amounts
Amounts (Negative)
$ - $ 135,000 $ 135,000
- (49,154)(49,154)
- 85,846 85,846
- 21,340
(21,340)
1,715,234 335,424
1.379,810
1,715,234 356,764
1.368,470
(1,715,234) (270,918) 1.444.316
-
2,608,000
2.609,000
(612,777)
(513,757)
99,020
(612,777)
2.095.243
2,708.020
(2,328,011)
1,824,325
4,152,336
5,449,_265 . 5,449.265 -
$ 3,121,254 $ 7,273,590 $ 4,152,336
93 123
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Law Water Crossings Capital Projects Fund Year Ended June 30, 2022
REVENUES
Intergovernmental
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
Variance with
Final Final Budget
Budgeled Actual Positive
Amounts Amounts (Negative)
$ 4,428,000 $ 86,254 $ (4,341,746)
- 172,297
(172,297)
4,978,490 520.976
4.457,514
4,978,490 693,273
4.285,217
(550,490) (607.019) — -- �56,529)
200,000
200,000 -
(229,249)
(3,826) 225,423
(29.249)
196,174 225,423
(579,739)
(410,845) 168,894
(1,974,616) (1,974,616) -
(2,525,106) $ (2,385.461) $ 168,894
94 124
CUSTODIAL FUNDS
125
City of Yucaipa
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2022
ASSETS
Cash and Investments
Gash and Investments with Fiscal Agents
Accounts Receivable
Interest Receivable
Total Assets
LIABILITIES
Accounts Payable
Total Liabilities
Police CFD 98-1
Department Cramer Debt
$ 64,638 $ 52,706 $ 2,623,500 $ 2,730,844
- - 2,372,085 2,372,085
11,558 11,558
39 37 3,411 3,487
54,677 52,743 5,010,554 5,117,974
148 148
148 148
NET POSITION
Restricted for Organizations and Individuals $ 54,677 $ 52,743 $ 5,010,406 $ 5,117,826 96 126
City of Yucaipa
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
June 30, 2022
Police CFD 98-1
Department Cramer Debt
Donation House Reserves Totals
ADDITIONS
Taxes and Assessments Collected for Others $ - $ - $ 2,188,634 $ 2,188,634 Investment Income (575) (555) (39,794) (40,924)
Total Additions (575) (555) 2,148,840 2,147,710
DEDUCTIONS
General and Administrative
- - 56,524
56,524
Payments to Bondholders
- - 2,183,472
2,183,472
Total Deductions
- - 2,239,996
2,239,996
Net Change in Fiduciary Net Position
(575) (555) (91,156)
(92,286)
Net Position, Beginning of Year
55,252 53,298 5,101,562
6,210,112
Net Position, End of Year
$ 54,677 $ 52,743 $ 5,010,406
$ 5,117,826
96 127
STATISTICAL SECTION
128
STATISTICAL SECTION
This part of the City of Yucaipa's Annual Comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health,
CONTENTS
PAGE
Financial Trends 98
These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time.
Revenue Capacity 106
These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.
Debt Capacity 112
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.
Demographic and Economic Information 117
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.
Operating Information 119
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs.
97 129
CITY OF YUCAIPA
Net Position by Campunent
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2022
2021
2020
2019
Z018
Net Position:
Investment in Capital Assets
$ 192,150,325
$ 187,300,451
$ 193,575,047
$ 187,442,518
$ 173,234,642
Restricted for:
Low and Moderate Housing
-
-
437
21,998
50,095
Public Safety
1,290,274
842,456
689,126
773,906
1,147.116
Public Works/Transportation
3,403,692
172,578
134,574
1,345,343
1,795,685
Community Development
1.297,916
8,399
8,364
4,306
306
Community Service 1 Public Education
3,643,830
3,433,073
3,100,353
2,914,000
2,679,478
Capital Projects
9,227,206
9,799,378
115,936
2,451,698
2,598,651
Other Purpose
-
1 1,245,728
1,288,717
1,277,363
Unrestricted
24.234.997
25,981.533
25,066,595
23.879,234
33,974,660
Total Net Position $ 234,248,240 $ 226,536,869 $ 223,936,060 $ 220,121,720 $ 216,757,996 98 130
Fiscal Year
2017 2016 2015 2014 2013
$ 161,130,470
$ 155.769,911
$ 150,107,657
151,198,060
$ 152,718,653
93,740
-
1,437,359
1,709.562
1, 731,433
1,648,506
1,511,857
3,136,626
3,001,667
9,715,836
9,602,617
8,763,810
13,106
14,494
12,815
12,$IS
5,546,679
2,497,976
2,550,577
2,308,616
2,196,701
1,978,972
3,590,668
4,680.900
347,493
323,462
61.7,337
1,510,011
1,489,306
1,472,937
1,407,186
1,372,341
34,487,009
39,545,036
38,714,479
42,269,769
41,093,013
$ 207,896,965
$ 207,761,353
$ 204,411,266
$ 2081649,116
$ 213,602,662
99 131
Expenses:
Governmental ncllvltic3:
General 00vcnllncnl
Community Development
Building and Safety
Public Works
Public Safety
Fire Protection Services
Paramedic Services
Community Services
Total Governmental activities
CITY OF YUCAIPA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fi$c31 Year
2022 2021 2020 2019 2018
S 4.943,392
S 5,523,173
$ 4,640,613
S 4,052.236 S
4,093.998
2,724,779
2,662,672
2,267,6$1
2.374,236
2,256.053
1.163,594
814,756
609,024
478,256
337.227
12,003,117
13,813,740
10,128,308
8,542,114
8,011,508
12,053,452
11,610,569
11,124,230
10,293.400
9,869,497
41463,457
3,564,110
4,020.422
3,543,4%
3,097,650
1,493,776
1,549.946
1,614.130
1.589,010
1,486,067
3,520,861
1,846,775
2.720.132
2,474.834
2,012,974
421366,428
41,389,941
37,124,512
33.347.652
31,214.974
Program Revenues:
Govenunental activities:
Charges for Services
1,477,156
4,557,440
4.492,201
4,452.055
3,598,357
Operating Grants and Contributions
5,938,900
3,568,495
2,203,890
1,698,865
1,730,919
Capital Grants and Contributions
9,340,764
9,636,799
9.938,960
6,044,151
13.559,464
Total governmental activities prognam revenues
2 °,757,020
17,762,734
16.635,051
12,195.071
18,888.640
Net (Expense) Revenue and Change in Net Positipq
(I1,6111,lfih)
(21,627,207)
(20,499,461)
(21,152,581)
(12.326.334)
General Revenues:
Taxes:
Property Taxes
13,802,354
13,283,544
1208,276
12,13028
11,616,465
Sales and Use Taxes
5,299,433
4,600,872
3,7$1,929
4,178.316
3,491.965
Franchise Taxes
1,672,542
1,567,185
1,491,027
1.422.487
1.391,727
Documentary Transfer Tax
318,285
311,936
186,819
165,803
196,525
Other Taxes
23,658
22,299
22,379
22,903
22,529
Vchiclo Licensc Fccs. Unrestricted
5,931.673
5,689,226
5,448.407
5,183,224
4.961,077
InvcstmcntIncome
(187,606)
43,503
412,106
646,973
64,534
Miswlloncous
460.441
5.674.866
392,959
160.271
391,399
Total General Revenue
27,320,78C
31,193,411
24,303,801
24,516,305
22.126,221
Change in Nct Position
7,711,372
7,566,224
3,814,340
3,363,724
9.799,881
Nct Positon- beginning of the Year
226,536,868
218,970,644
220.121,720
2 16,757,�)96
206,958,109
Net Position- End of the Year
S 234,248,240
S 226,536,869
S 223.916,060
S 220,12i,720
5 216 757,996
100
132
Fiscal Year _
2017 2016 2015 2014 2013
S 3,810,457
S 3,217,017
S 3,059,021
$ 2,786,070
$ %8861687
2,278,822
5,564,038
5,170.508
6,178,671
6,281,252
443.510
535,135
470,200
298,010
262,910
5,836,411
6,628,742
6,745,133
12,320,777
6.336,623
91308.289
8,559,107
9,133,233
7,269,032
7.008,652
2,926,527
2,796,287
2,841,475
2,685,834
2,477.517
1,329,323
1,170,740
1,064,232
958.613
960,248
2.549,809
L,893,305
2,L06,093
1,633.333
1.427,406
28.493,147
30,364,371
29,569,895
34,130.340
28.641,295
3.695.175
3,601,914
3,146,047
2,$25,564
2.649,133
1,590,665
1,712,301
1,743.410
106,654
1,287,363
1,648.680
7.479.465
3,671,538
4,372.675
6,462,934
6,934.520
12,793,680
8,560,995
7,954.893
10,399.450
(21,548,627)
(17,570,691)
(21,028,900)
(26,17$,447)
(18.241.345)
11,072,145
10,411,588
10,034,783
9,689,195
9,158,269
3,446,413
3,528,777
3,178,L95
2,857,302
2,663,S84
1,339,715
1,415,951
1,427,826
1,412,159
1,343, 430
167,977
165.430
173,871
1.22,362
115,833
22,666
22,94L
18,253
17,656
15,861
4,706,421
4,459,501
4,267,755
3,963.654
3,895,205
183,557
463,238
482,999
315.102
217,721
725,345
453,352
558,284
2.944,271
963,676
21,684,239
20,920,778
20,141,966
21.221,901
18,373,579
135,612
3,350,087
(896.934)
(4,953,546)
131,734
207,76053
204.411.266
205.298.200
213.602,662
213,470,928
S 207,896,965
S 207.761.353
.S 294,411.266
S 206,649.116
S 213,602,662
101
133
General Fund:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
Total Fund Balances
CITY OF YUCAIPA
Fund Balances ofCrovernmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2022
2021
$ 22,929,682
$ 24,846,293
17,237,963
15,853,604
-
2,387,911
10,781,774
9,284.068
50,949,419
52,371,976
hiscal Ycar
2020
2019
2018
$ 26,910,383
$ 22,370,194
$ 20,416,604
-
125,052
192,397
18,324,766
11,908,560
7,463,406
3,187,943
4,591,778
4,019,175
6,530,400
4,621,841
5.367,230
54,953,496
49,617,425
37,658,812
34,483
-
-
-
-
9.467,285
9,225,434
5,684,636
10,027,656
10,547.436
-
-
-
-
11,820,420
7,273,190
5,449,261
-
-
5,777,260
(25,445,902)
(25,817,650)
(32,714,452)
(26,585,290)
(27,535,988)
(9,670,539)
(11,142,951)
(27,029,816)
(16,557,624)
609,128
42,278,880
S 41,228,925
27,923,6SO $
33,059,791
$38,267.940
Beginning in FY 2018/19, the General Fund and the Fire Special Revenue Fund were combined_ 102
134
Fiscal Year
2017 2016 2015 2014 2013
$ 20,648,580
$ 13,946,845
$ 11,313,445
$ 11,537,445
$ 11,788,003
310,760
1,071,460
985,R13
1,710,864
928,749
7,035,269
6,761,166
5,342.829
5,182.303
5,037,196
3,225,598
12,009,103
10,933,751
9,536,944
8,519,695
5,080,248
11,528,265
15,033,677
14,689,176
13,074,022
36,300,455
45,318,839
43,609,610
42,656,731
39,407,665
-
2,923,167
2,523,014
2.531,Q14
2.577,079
12.901,073
13,272,331
15,532, 774
15,03 9,236
14,897,917
11,811,080
8,878,997
8,870,725
8,458,732
8,053,276
12,301,900
36.079
327.168
358,898
(23.280,361)
(15.873,763)
(13,324,985)
(12,172,510)
(5,109,470)
13,733,692
9,200,732
13,637,607
14,183,640
20,777,700
$ 50,034,147
$ 54,519,571
$ 57,247,217
$ 56,840,371
$ 60,185.365
103
135
CITY OF YUCAIPA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis ofaccounting)
Fiscal Year
_
2022
2021
2020
2019
2018
Revenues:
Taxes:
Property Taxes
$ 13,802,334
$ 13.293,544
$ 12,598,276
$ 12,136,328
$ 11,616,465
Sales and Use Taxes
5,299,433
4,600,872
3,751,828
4,178,316
3,491,965
Franchise Taxes
1,672,542
1,567,185
1,491,027
1,422,487
1,391,727
Documentary Transfer Tax
318,285
311,936
186,819
165,803
196,525
Other Taxes
23,658
22,299
22,379
22,903
22,529
License and Permits
1,375,320
987,628
736,865
642,926
563,075
Fines and Forfeitures
326,104
381,295
40,581
44,876
42,799
Charges for Services
9,991,482
4,490,771
3,386,200
4,053,783
3,337,724
Intergovernmental
17,905,890
19,719,637
13,565,747
17,457,588
9,570,510
Investment Income
(410,975)
365,311
1,036,327
1,418,791
478,954
Other
464,790
5,682,031
425,493
819,162
391,399
Total Revenue
49,768,883
51,412,509
37,261,542
42,362,963
31,093,672
Expenditures:
Current:
General Government
5,190,044
4,320,276
3,453,098
3,710,893
3,405,544
Community Development
1,388,086
1,192,242
797,221
914,835
796,652
Building and Safety
1,163,594
814,756
609,026
478,236
397,227
Pubic Works
5,207,567
4.499,705
4,880,501
4,288,078
3,994,399
Public Safety
11,186,455
10,758,027
10,338,027
9,540,653
9,127,655
Fire Protection Services
4,463,457
3,568,310
4,020,422
3,543,496
3,097,650
Paramedic Services
1,493.776
1,549,946
1,614,130
1,589.010
1.496,067
Community Service
3,302,618
1,626,246
2,499,404
2,288,639
1,830,426
Capital Outlay
14,376,331
9,933,302
14,185,824
21,217,272
18,848,545
Total Expenditures
47,771,928
38.262,910
42,397,653
47,571,112
42,964,165
Excess (Deficiency) of Revenues
over(tinder)Expenditures
1,996,955
13,149,699
(5,136,111)
(5,208,149)
(11,870,493)
Other Financing Sources (Uses)
Transfer In
15,137,307
10,663,705
19,552,583
18,916,990
7,225,957
Transfer Out
(16,084,307)
(10,973,705)
(19,552,593)
(18,916,990)
(7,121,671)
Total Other Financing Sources
(947,000)
(210,000)
-
-
104,286
Net Change in Fund Balance
1,049,955
12,939,699
(5,136,111)
(5,208,149)
(11,766,207)
Fund balance, Beginning of Year
41,228,925
27,923,680
33,059,791
38,267,940
50,034,147
Fund Balance, End of the Year
$ 42,278,890
$ 41,228,925
S 27,923,690
$ 33,059,791
$ 38,267,940
104
136
Fiscal Year _
2017 2016 2015 2014 2013�
$ 11,072,145
$ 10,411,588
$ 10,034,783
S 91689,395
$ 9,158,269
3,446,413
3,528,777
3,178,195
2,857,302
2,663,584
1,339, 715
1,415,951
1,427,826
1,412,159
1,343,430
187,977
165,430
173,871
122,362
115,833
22,666
22,941
18,253
17,656
15,861
669,889
741,816
644,438
439,867
426,965
34,708
46,210
65,641
87,443
99,282
3,217,725
4,142,074
3,523,712
1,558,693
2,088,953
8,048,047
11,192,564
8,422,779
9,523,229
10,921,608
472,118
899,261
713,548
315,102
220,434
563,339
643,662
692,134
1,456,782
1,559,870
29,074,742
33,210,274
28,895,179
27.479,990
28,614,089
3,082,881
2,761,798
2,574,342
2,560,664
3,209,997
819,421
$74,127
662,301
680,532
639,920
443,510
535,135
470,200
299,010
262,910
3,632,801
3,960,098
4,217,659
3.612,607
3,628,420
8,658,819
7,980,926
7,570,372
6,974,900
6,710,993
2,926,527
2,796,287
2,841,475
2,685,834
2,477,517
1,3297323
1,170,740
1,064,232
958.613
960,248
2,364,323
1,707,102
1,908,332
1,396,430
I,190,224
10,191,847
14,053,736
6,964,420
13,423,621
8,292,652
33,449,452
35,939,949
28,273,333
32,651,211
27,372,781
(4,374,710)
(2,629,675)
621,846
(5,171,221)
1,241,309
26,029,696
4,502,284
2,392,627
5,849,550
11,215,090
(26,140,410)
(4,600,255)
(2,607,627)
(4,023.323)
(11,415,090)
(110,714)
(97,971)
(215,000)
1,826,227
(200,000)
(4,495,424)
(2,727,646)
406,846
(3,344,994)
1,041,309
54,519,571
57,247,217
56,840,371
60,185,365
59,144,057
S 50,034.147
$ 54,5L9,371
$ 57,247,217
56,840,37I
$ 60,185,365
105
137
CITY OF YUCAIPA
Assessed Value and Estimated Actual Value of Taxable Property by Major Type Last Ten Fiscal Years
Category
2022
2021
2020
2019
2018
Residental
S4,477,721,348
S4,290,661,031
$4,121,577,454
$3,922,178,028
$3,733,392,419
Commercial
392,826.501
384,136.677
359,691,461
343,989,586
318.283,068
Industrial
72,737,494
21,352,036
19,373,164
22,959,396
20,540,942
Irrigated
239,472
256,811
251,775
143,693
140,876
DryFarm
2,432,318
3,068,142
3,363,591
3,429,995
3,372,477
Recreational
5,342,452
5,660,995
5,247,653
5,188,913
5,127,653
Institutional
10,279,542
16,166,803
12,156,160
8,179,074
9,902,113
Miscellaneous
15,862,094
16,914,925
17,107,033
10,852,354
11,567,874
Vacant Land
134,905,956
120,960,512
111,676,789
1108,457,958
113,299,055
Unsecured
8I,693,302
74,728,619
74,568,629
69,812,138
66,612,865
Total
$3,144,060,479
$4,933,806,551
$4,724,963,709
$4,494,991,135
$4,302,239,342
Total direct rate
0.23994
0.22914
0.2291.7
0.22919
0,22923
Source:
HdL
106
138
2017
2016
2015
2014
2013
$3,545,207,827
$3,358340,145
$3,197,499,722
$2,941,326,218
$2,878,776,247
307,441,314
282,344,120
279,379,006
278,331,820
276,265,189
19,499,887
28,947,572
27,816,631
25,761,469
23,991,367
138,112
136,038
133,374
132,771
130,167
3,433,192
3,395,439
3,328,926
3,313,882
3,248,902
5,069,825
5,415,474
4,107,321
5,052,198
5,001,371
10,120,689
3,759,117
6,693,943
4,629,021
2,966,082
10,872,131
10,959,685
11,413,452
11,156,895
10,820,367
112,236,082
109,221,283
105,449,947
103,068,595
109,700,908
67,513,752
64,879,744
65,290,823
64,584,003
67,096,047
$4,081,532,811
$3,867,398,617
$3,701,113,147
$3,437,356,872
$3,377,996,647
0 22921
0.22914
0.22912
0.22915
0.27624
107
139
CITY OF YUCAIPA
Direct & Overlapping Property Tax Rates
(Rate Per $100 of Taxable Value)
Agency
2022
2021
2020
2019
2018
Basic Levy
1.00000
1.00000
1.00000
1.00000
1.00000
Redlands Unified School Bond 1993
0.06620
0.03600
0.03390
0.03240
0,04940
San Bernardino Community College Bond
0.05340
0.06510
0.05620
0.04070
0.03760
San Bernardino Valley Muni Water
0,13000
0,14250
0.14250
0.15250
0,15250
Total Direct & Overlapping Tax lutes
1.24960
1.24360
1.23260
1.22560
1.23950
City's Share of I% Levy Per Prop 13
General Obligation Debt Rate
Total Direct Rate
Source:
HdI
0.22228 0.22228 0.22229 0.22228 0.22229
0 0 0 0 0
0,23994 0.22914 0,22917 0.22919 0.22923
108
140
2017
2016
2015
2014
2013
1.00000
1.00000
1.00000
1.00000
1.00000
0.05240
0.05670
0.05940
0.06290
0.06410
0.03500
0.04030
0.03930
0,04190
0.04590
0.16250
0.16250
0.16250
0,16250
0,16250
1,24990
1.25950
1.26120
1.26730
1.27250
0.22228
0.22228
0.22228
0.22228
0.22228
0 0
0 0
0 0.22921
0.22914
0.22912
0.22915
0,27624
109
141
CITY OF YUCAIPA
Principal Property Tax Payers
Current Year and Nine Years Aga
202_2_ 2013
Combined (Secured & Unsecured) Combined (Secured & unsecured) Total Assessed
Percent of Net
Total Assessed
Percent of Net
Taxpayer
Value
Raok
Assessed Value
Value
Rank
Assessed Value
YVCC If LLC
S 25,555,116
1 0.50%
21,493,706
1 0.64%
SNR 24 GOLDEN OAKS OWNER LLC
19,266,611
2 0,37%
SORENSON ENGINEERING INC
19,076,176
3 0 37%
8,313,946
9 0.25%
CHAPMAN HEIGHTS YUCAIPA
15,156,389
4 0.29%
13,061,312
4 0.39°/a
YUCAIPA VENTURE LLC
15,155,400
5 0.29%
YUCAIPA AVENUE E LLC
14,384,751
6 0.29%
CSL WILDWOOD PROPERTY LLC
13,200,000
7 0.26%
)DP CH INVESTMENT LP
12,754,473
6 0.25%
SUN LAKEVIEW MOBILE ESTATES LLC
12,741,672
9 0.25%
PUTNAM FAMILY PARTNERSHIP
12,044,402
10 0.23%
10,379,501
7 0.31%
YUCAIPA RETIREMENT RESIDENCE LP
14,475,439
2 0,43%
STATER BROS MARKETS
13,424,345
3 0 40%
GERALD S. RUBIN
11,238,111
5 0.33°%
CALANDA REAL LP
10,994,784
6 0.33%
YUCAIPA VALLEY ACRES
8,404,569
8 0,25%
TOPAZ-YUCAIPA LLC
8,164,056
10 0,24%
TOP TEN TOTAL
159,334,990
3.10%
119,949,769
3.55%
CITY TOTAL
$ 5.144,060,479
8 3,377,996.647
Source:
HdL
110
142
CITY OF YUCAIPA
Property Tax Levies and Collections
Last Five Fiscal Years
Collected within the
Fiscal
Taxes Levied
Fiscal Year
of Levy
Subsequent Years
Total Collections to Date
Year Ended
for the
Percent
Collections
Percent
30-Jun
Fiscal Year
Amount
of Levy
of Prior Years 2
Amount
of Levy
2022
$11,890,508
$11,878,270
99.90%
$332,576
$12,210,846
102.69%
2021
11,431,712
11,406,447
99.78%
353,249
11,759,696
102.87%
2020
10,977,686
10,806,198
98.44%
295,981
11,102,179
101.13%
2019
10,474,628
10,389,693
99,19%
336,063
10,725,756
102.40%
2018
10,063,603
10,008,179
99,45%
291,704
10,299,883
102.35%
NOTE:
I The amounts presented include City property taxes and Redevelopment Agency increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed -through to other agencies.
The State of California dissolved the Redevelopment Agency effective 2012, Collections in subsequent years may include delinquent tax payments from multiple years which are not identified separately by the County of San Bernardino,
2 Subsequent years collections of prior years may include delinquent tax payments from multiple prior years which are not identified separately by the County of San Bernardino. Limitations exist within the County's tax system which impede the ability to identify prior tax year delinquent payments by assessment year.
Source:
San Bernardino County Auditor -Controller's Office
The City of Yucaipa has elected to show only five years of data for this schedule. 111
143
CITY OF YUCAIPA
Ratios of Outstanding Debt by Type
Last Five Fiscal Years
Former RDA Tax
Allocation Bonds
Fiscal Year Ended Principal Percentage of
June 30 Outstanding Personal Income Debt Per Capita
2022 $ - 0.00% $ -
2021 0.00% -
2020 ^ 0.00% -
2019 ^ 0.00% -
2018 m 0.00% -
These ratios are Calculated using personal income and population for the prior calendar year.
NOTE:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
The City of Yucaipa currently does not have any debt.
112
144
CITY OF YUCAIPA
Ratios of General Bonded Debt Outstanding
Last Five Fiscal Years
Fiscal Year Ended Former RDA Tax
Percentage of
June 30 Allocation Bonds
Assessed Value 1
2022 $ -
0.00%
2021 -
0.00%
2020 -
0.00%
2019 -
0.00%
2018 -
0. o%
Per cola
I Assessed Value has been used because the actual value of taxable property is not readily available in the Slate of California.
NOTE:
Details regarding the City's outstanding debt can be found in the notes to the financial statcmcnts, 'fhe City of Yucaipa currently does not have any debt.
113
145
CITY OF YUCAIPA
Direct and Overlapping Debt
June 30, 2022
2021-2022 Assessed Valuation. 5 S.144,046,115
OYERLAPPINCLTAX AND ASSESSMENT DEBT'.
San Bernardino Community College District
Redlands Unified School District
City of Yucaipa
City of Yucaipa Community Facilities District No. 98-1
Yucaipa Calimesa Joint Unified School District Community Facilities District No, 2 Yucaipa Calimesa Joint Unified School District Community Facilities District No, 3 California Statewide Community Development Authority Assessment District No, 21-01 TOTAL OVERLAPPING TAX AND ASSESSMENT D13BT
OVERLAPPING GENERAL FUND Q1131:
San Bernardino County General Fund Obligations
Sari Bernardino County Pension Obligation Bands
San Bernardino County Flood Conlrel District General Fund Obligations Yucaipa-Calimesa Joint Unified School District Oeneml. Funs! Obligations TOTAL OVnR.LAPPING GENERAL FUND DEBT
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
DIRECT TAX AND ASSESSMENT DEBT:
City of Yucaipa
TOTAL DIRECT DEBT
COMBINED TOTAL DEBT'
Noses:
Verccntage
Outstanding Debt
Estimated Share of
A Iica�
06/30/22
Overlapping
Debt
6.043%
S;
730.017,126
S
44,114,935
0.062%
59,303,512
36,768
100,000%
S
-
S
-
100.000%
15,610,600
13,610,000
100.000%
920,000
920,000
100.000%
1,948,001
1,948,003
t00.000940
3,529.000
3,529,000
S
811.326 639
$
66.157,704
1,932%
5 189,035.000
$
3,632,836
1.932%
119,835,000
2,315,212
1.932%
44,780,000
865,150
82.651%
5.834,502
4,822,274
359.484.502
13.635,472
100.0001%
6,550.000
6,550,000
100.000%
s
s
S
-
S
S 84,343,176
l The perreutage of overlapping debt applicable to the City i6 e6timotcd using lexublu assessed property value. Applicnble perccnlayes were estimated by dclemiming tlu puman of the pvcrlapping digtrict'p ags wd value theft is within the botittdarics of the City divided sty the district'9 total taxable Assessed value, r Excludes tax and revenue anticipation notes, revenue, ntotigode revenue and non -bonded capital [case abligotians.
Ratios to 20Y1-2? Assessed Valuation:
Direct Debt.............................................................. 0.00% Total Direct and Overlapping Tax and Assessment Debt,...,,... 1.29% Combined Total Debt ................................................ 1.64% Ratios to Redevelopment Successor Aaencv Iw.=cntal Vahwkit 6.291 489 307) Total Overla?pinZ Tax Iperentept Debt....... 2.25%
114
146
CITY OF YUCAIPA
Legal Debt Margin Information
Last Five Fiscal Years
Fiscal Year
2022 2021 2020 2019 2018
Assessed Valuation $
5,144.060,479 S
4,933,806,551
S 4,724,963,709
$ 4,494,991,135
S 4.302,239,342
Conversion percentage
25%
25%
25010
25%
25%
Adjusted assessed valuation
1,286,015,120
1,233,451,638
1,181,240,927
1,123,747,784
1,075,559,836
Debt limit percentage
15°!0
15%
13%
15%
15%
Debt limit
1.92,902,268
195,017,746
177,186,139
168,562,168
161,333,975
Total net debt applicable to the limit
General obligation bonds
-
-
Legal debt margin
192,902,269
185,017,74E
177,18E,139
10,562,168
161,333,975
Total debt applicable to the limit
as a percentage of debt limit
0,00%
0.00°l0
0.00%
0.00%
0.00%
NOTE:
The Government Code of the State of California provides for a legal debt limit of 15%ofgross assessed valuation. However, this provision when assessed valuation was based up 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value ( as of the most recent change in ownership for that parcel.) The computations shown above reflect a Conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local government located within the state.
Sources:
San Bernardino County Tax Assessor
115
147
Fiscal Year
Ended
June 30
2022
2021
2020
2019
2018
2017
CITY OF YUCAIPA
PIedged Revenue Coverage
Last Six Fiscal Years
Tax Allocation Bonds
Former RDA Tax
Increment
S -
Debt Service
Principal
$ 205,000
195,000
190,000
180,000
175,000
165,000
Interest Coverage
346,941 -
355,602 -
363,828 -
371,675
379,137
386,243
NOTE:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest or depreciation expenses.
On February 1, 2012 the Redevelopment Agency was dissolved. 116
148
CITY OF YUCAIPA
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Income
Per Capita
Unemployment
Calendar Year
population
(In Thousands)
Personal Income
_ Fate
2021
54,494
$ 1,722,373
$ 31,606
5.70%
2020
55,634
1,620,848
29,134
7.90%
2019
55,712
1,542,724
27,691
3.20%
2018
54,844
1,407,956
25,672
3.40%
2017
54,651
1,33 8,730
24,495
4.00%
2016
54,324
1,347,721
24,808
5.80%
2015
53,779
1,367,950
25,436
6.60%
2014
52,598
1,353,662
25,736
8.20%
2013
52,654
1,365,950
25,942
6.60%
2012
52,549
1,372,475
26,118
7.70%
Sources:
State Department of Finance, HdL, State of California Employment Development Department https://www.cen,sus,gov/quickfacts/fact/table/yucaipacitycalifornia/BZAI I5218 https://woridpopulationreview.com/us-cities/yucaipa-ca-population 117
149
CITY OF YUCAIPA
Principal Employers
Current Year and Nine Years Ago
2422* 2013*
Number of
Percent of'rotal
Number of
Percent of Tolal
Employer Employees
Employment
Employees
Employmcnl
TOTAL TOP EMPLOYERS - - - -
TOTAL EMPLOYEES IN CITY - -
NOTE:
*The City of Yucaipa chooses to not present the principal employer data as the information is not readily available. 118
150
CITY OF YUCAIPA
City Employees
by Function
Last Five Fiscal Years
Employees as of June 30
2022
2021
2020
20I9
2018
Full-time employees:
City Manager Department
5.05 3.55
4.00 3.00
3.00 Community Services Department
13.60 10.60
10,10
10,20
TOO
Development Services Department:
Director
1.00 1.00
1.00 0.40
0.40 Administration
2.00 2.00
2.31 1.00
1.75 Engineering
5.50 5,50
4.50 6.00
6.00 Street Maintenance
5.25 5.25
5.25 4.50
4.50 Parks/Facilities Maintenance
9.75 8.75
9.75 8.00
8.00 Planning
4.25 3.25
3.50 2.50
2.50 Code Enforcement
3.25 4.25
3,00
4.16 4.16
Finance Department
8.78 9.00
7.00 6.75
6.75 Fire Services Department
0.00 0.00
0.00 0.23
0.25 General Services Department
6,85
638
4.40 4.00
4.00 Successor Agency to RDA
0.52 0.27
0,14
0.48 0.52
Yucaipa Housing Authority
0.20 0.20
0.06 0.16
0.18 Total
66.00 59.00
54,00
53.00 49.00
Sources:
City of Yucaipa
119
151
CITY OF YUCAIPA
Operating Indicators
by Function
Last Five Fiscal Years
Fiscal Year
Function
2022
2021
2020
2019
2018
Police:
Calls for service
42,995
42,814
43,808
44,488
42,964
Citations issued
4,236
1,305
1,252
1,727
1,293
Fire:
Number of Incidents
8,500
8,263
7,636
8,297
7,922
Inspections performed
-
-
-
-
105
Building and Safety:
Building permits Issued
2,210
1,885
1,376
1,448
1,274
No. of New Dwelling Units
233
119
17 21
125
Parks and recreation:
Community center attendance
14,139
7,112
16,897
27,712
21,007
STARS
1,093
1,649
12,269
16,289
15,036
Camps
683
433
940
I,388
1,574
Aquatics
3,570
2,440
1,275
6,950
7,090
Community Center Classes
1,061
715
4,2I8
5,880
6,508
Scherer Center Classes
5,384
1,153
3,742
5,130
5,267
Administration
New Business Licenses
570
428
422
469
459
Renewed Business Licenses
1,452
1,564
1,547
1,549
1,487
Sources:
City of Yucaipa
120
152
Function
Police:
Stations
Sub -stations
Fire:
Fire Stations
Public Works
Streets (miles)
Traffic signals (city -owned)
Roundabouts
Parks and Recreation:
Parks (acreage)
Community Centers
Performing Arts Centers
Sources:
City of Yucaipa
CITY OF YUCAIPA
Capital Asset Statistics
by Function
Last Five Fiscal Years
Fiscal Year
2022 2021 2020 2019
2018
3 3
3 3
3 227.82
227.82
227.82
227.82
227.82
32.5 32.5
31.5 27.5
27.5 4
4 4
2 2
534
534
534
534
532
2 2
2 2
2 1
1 1
1 0
121
153
Van Lanf&
rn A Fankhanel,LLP
� 4s�fllilu❑ I'uGhc: flo:r.00ul�l gulls �
Independent Auditor's Report on Internal Control over Financial Deporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards City Council
City of Yucaipa
Yucaipa, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Yucaipa (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated February 22, 2023,
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City'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 opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in infernal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified, I
Van Lant & Fankhanel, LLP
29970 Technology drive. Suite 105 A
Murrieta, CA 92563
909,856.8879
154
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City'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 determination of financial statement amounts. 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 City'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 City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. )�V �'t 4- yoln�o ii f
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INDEPENDENT ACCOUNTANT'S REPORT ON AGREED -UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
City Council
City of Yucaipa
Yucaipa, California
We have performed procedures enumerated below to be the accompanying Appropriations Limit worksheet of the City of Yucaipa, for the year ended June 30, 2022. These procedures, which were agreed to by the City of Yucaipa and the League of California Cities (as presented in the publication entitled Agreed -upon Procedures Applied to the Appropriations Limitation Prescribed by Article X111B of the California Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City's management is responsible for the Appropriations Limit worksheet. This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council, Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit worksheet, we added last year's limit to total adjustments and agreed the resulting amount to this year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the accompanying Appropriations Limit worksheet to the other documents referenced in #1 above.
Finding: No exceptions were noted as a result of our procedures.
Van Lant & Fankhanel, LL P
29970 Technology Drive, Suite 105 A
Murrieta. CA 92563
909.B56.6879
156
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet to the prior year appropriations limit adopted by the City Council during the prior year.
Finding: No exceptions were noted as a result of our procedures.
We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled Article XHIS of the Califomia Constitution.
This report is intended solely for the use of the City Council and management of the City of Yucaipa and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
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February 22, 2023
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CITY OF YUCAIPA
APPROPRIATIONS LIMIT COMPUTATION
2021-2022
Change in Per Capita Personal Income
Population Change
City of Yucaipa Population Growth
A. Change in Per Capita Personal Income Converted to a Ratio B. Population Growth Converted to a Ratio
Calculation of Growth Factor (A x B)
2020 - 2021 Appropriations Limit $ 46,548,644
2021 - 2022 Appropriations Limit
($46,548,644 x 1.0590974)
3 $ 49,299,548
2021-22
5.73%
0.17%
1.0573
1.0017
1.0590974
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February 22, 2023
City Council
City of Yucaipa
Yucaipa, California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Yucaipa (City) for the year ended June 30, 2022.
Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 13, 2023. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year, except for the implementation of GASB Statement No. 87 regarding leases. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were;
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 as a whole.
Management's estimate of capital assets depreciation 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 they are reasonable in relation to the financial statements as a whole.
Management's estimates for the net pension and total OPEB liabilities are based on actuarial information provided by the California Public Employee Retirement System's (CalPERS) actuarial office, and other sources. We evaluated the key factors and assumptions to develop these liabilities in determining that the estimated liabilities are reasonable in relation to the financial statements as a whole,
Van Lant & Fankhanel, IE_LP
29970 Technology Drive. Suite 105 A
Murrieta_ CA 92563
909.856.6079
159
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
The disclosure of the fair value of investments in Note 2 to the financial statements represents amounts susceptible to market fluctuation.
The disclosure of accumulated depreciation in Note 5 to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.
The disclosures for the net pension and total ❑PEB liabilities in Notes 8 and 9 to the financial statements are based on assumptions for discount rates, etc., which could differ from actual experience. The notes disclose the differences in these liabilities if different assumptions are used in estimating these liabilities.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated February 22, 2023.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
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Other Matters
We applied certain limited procedures to Management's Discussion and Analysis and other required supplementary information, as listed in the City's financial statements, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance an the RSI.
We were engaged to report on the supplementary information (e.g., budgetary schedules, combining statements), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City of Yucaipa and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
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