Agenda Item No.
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Phil White, Director of Finance
Ryan Blackerby, Deputy Director of Finance
Skyler Aubrey, Accounting Manager S to
FOR: City Council Meeting of January 8, 2024
SUBJECT: Financial Reports for Fiscal Year Ended June 30, 2023 RECOMMENDATION:
That the City Council receive and file the Annual Comprehensive Financial Report, Measure I Fund Financial Statements, and Transportation Development Act Fund Financial Statements for the fiscal year ended June 30, 2023, and other related audit reports.
DISCUSSION:
The City issues several financial reports each year. Each financial report has a different purpose and presents information in a manner designed for that purpose. As an example, the financial statements are presented based on industry standard rules to allow a reader to ascertain the City's financial health, while the budget document is compiled based on different industry standard accounting rules and presents the annual spending plan for the City.
As the City progresses through the fiscal year (July 1 through June 30), revenues are received and dollars are expended. These "actual" transactions are posted to the general ledger, the official financial record of the City, using generally accepted accounting principles (GAAP). After the City closes its' books following the June 30 year-end, the financial records for all City accounting Funds (financial statements) are audited. The FY 2022-23 external audit was performed by Van Lant and Fankhanel, LLP (VLF), an independent auditing firm. The purpose of the audit is for the independent auditor to opine on the presentation of the financial statements. The results of the audit and related reports were reviewed with City management and the financial statements were issued on December 21, 2023. VLF rendered an unmodified or a "clean" opinion on the fair presentation of the City's financial statements in accordance with GAAP.
The financial statements differ from the budget document by design. The budget acts as the annual spending plan and includes estimated revenues. Prior to the beginning of the fiscal year, management estimates annual operating and capital costs which are grouped into accounting Funds. The data is compiled using the budgetary basis of accounting (different than GAAP) into
the budget document that the City Council approves prior to July 1. The approved spending plan sets the parameters for management to operate the City for the fiscal year.
While the minimum requirements for financial reporting call for basic financial statements to be issued, the City also includes information to supplement the usefulness of the report. This information includes a Letter of Transmittal, Management's Discussion and Analysis, detailed combining schedules, budget and actual comparison schedules, pension supplementary schedules and statistical information. This information is included to provide additional context and analysis of the City's financial results. The inclusion of this information allows the City to refer to its financial report as an Annual Comprehensive Financial Report (ACFR). For the first time since FY 2017-18, the City's FY 2022-23 ACFR has been submitted to the Government Finance Officers Association's program for consideration of the Certificate of Excellence in Financial Reporting.
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 controls, the auditors reported no internal control deficiencies, nor any instances of noncompliance. The ACFR and the internal control report are available on the City's website.
The Finance Committee reviewed the ACFR draft at its December 4, 2023 meeting.
The City's Measure I (MSI) and Transportation Development Act (TDA) Funds are subject to standalone fund audits. San Bernardino County Transportation Authority (SBCTA) procures the external audit contract for the MSI and TDA Funds. The FY2022-23 MSI and TDA Funds were audited by Conrad LLP who rendered an unmodified opinion on each. Additionally, Conrad LLP issued an internal control and compliance report indicating no identified deficiencies in internal control in financial reporting and no instances of noncompliance relative to the MSI and TDA Funds.
FISCAL IMPACT:
There is no fiscal impact of the recommended action.
Attachments:
1. FY 2022-23 Annual Comprehensive Financial Report
2. Internal Control Over Financial Reporting and Compliance Report
3. AU-C 260 Auditor Communications Letter
4. FY 2023-23 Measure I Fund Financial Statements
5. FY 2022-23 Transportation Development Act Fund Financial Statements Approved by: <z_
ATTACHMENT 1
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2023
CITY OF YUCAIPA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2023
Prepared by
Finance Department
City of Yucaipa
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
TABLE OF CONTENTS
Paae
INTRODUCTORY SECTION
Letter of Transmittal i - v
Principal Officials vi
Organization Chart vii
FINANCIAL SECTION
Independent Auditor's Report 1-3
Management's Discussion and Analysis 4 -10
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Position
11 Statement of Activities
12 Fund Financial Statements:
Balance Sheet - Governmental Funds
13 -14
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position 15 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 16 - 17
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities
18 Statement of Net Position - Proprietary Fund
19 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund 20 Statement of Cash Flows - Proprietary Fund
21 Statement of Fiduciary Net Position
22 Statement of Changes in Fiduciary Net Position
23 Notes to Financial Statements
24 - 50
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability 51 Schedule of Plan Contributions 52
Schedule of Changes in Total OPEB Liability and Related Ratios 53 - 54 Schedule of OPEB Plan Contributions 55
Budgetary Comparison Schedule — General Fund 56
Budgetary Comparison Schedule — Miscellaneous Special Revenue Fund 57 Notes to Required Supplementary Information 58
Supplementary Information
Budgetary Comparison Schedules — Major Funds
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Development Impact Fees Capital Projects Fund 59
Facilities Construction Capital Projects Fund 60
Non -Major Governmental Funds
Combining Balance Sheet 61 - 64
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 65 - 68
City of Yucaipa
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
TABLE OF CONTENTS - Continued
Page
Supplementary Information - Continued
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Gas Tax Special Revenue Fund
69 Measure I Special Revenue Fund
70 Energy Independence Program Special Revenue Fund
71 State COPs Grant Special Revenue Fund
72 Office of Traffic and Safety Special Revenue Fund
73 LLMD Special Revenue Fund
74 Housing Authority Special Revenue Fund
75 Paramedic Special Revenue Fund
76 PEG Video Special Revenue Fund
77 Capital Projects Funds:
Miscellaneous Capital Projects Fund
78 CDBG Capital Projects Fund
79 Air Quality Improvement Capital Projects Fund
80 Pool Capital Replacement Capital Projects Fund
81 Street Maintenance Capital Projects Fund
82 TDA Article 3 Capital Projects Fund
83 1-10 Specific Plan Capital Projects Fund
84 Low Water Crossings Capital Projects Fund
85 Custodial Funds:
Combining Statement of Fiduciary Net Position
86 Combining Statement of Changes in Fiduciary Net Position 87 STATISTICAL SECTION
Statistics
88 Net Position by Component
89 - 90
Changes in Net Position
91 - 92
Fund Balances of Governmental Funds
93 - 94
Changes in Governmental Fund Balances
95 - 96
Assessed Value and Estimated Actual Value of Taxable Property by Major Type 97 - 98
Direct and Overlapping Property Tax Rates
99 -100
Principal Property Tax Payers
101
Property Tax Levies and Collections
102
Ratios of Outstanding Debt by Type
103
Ratios of General Bonded Debt Outstanding
104
Direct and Overlapping Debt
105
Legal Debt Margin Information
106 -107
Pledged Revenue Coverage
108
Demographic and Economic Statistics
109
Principal Employers
110
City Employees by Function
111
Operating Indicators by Function
112
Capital Asset Statistics by Function
113
INTRODUCTORY SECTION
CIT�OF
December 21, 2023
Citizens of the City of Yucaipa,
Honorable Mayor and Members of the City Council
It is with great pleasure that we present to you the Annual Comprehensive Financial Report (ACFR) of the City of Yucaipa, California for the fiscal year ended June 30, 2023. This document provides an overview of the City's financial activities during the past fiscal year. It has been prepared by the Finance Department for the benefit of City Council members, citizens, investors, grantors, employees and others who may have an interest in the financial well-being of the City.
The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management's representations concerning the finances of the City of Yucaipa, California. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, and misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls have been designed to provide reasonable rather than an absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
Van Lant & Fankhanel LLP, an independent firm of certified public accountants, has issued an unmodified or "clean" opinion on the fair presentation of the financial statements of the City of Yucaipa for the fiscal year ended June 30, 2023. The independent auditor's report is located at the front of the financial section of this 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 statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.
The statistical section of the ACFR provides additional context and information to assist in understanding and assessing the City's overall financial condition.
PROFILE OF THE CITY
The City of Yucaipa was incorporated on November 27, 1989 as a "General Law" City. The population of approximately 55,000 residents spans 28 square miles of southern San Bernardino County in the foothills adjacent to the San Bernardino National Forest.
Yucaipa operates under the Council -Manager form of government. The City Council is comprised of five members, elected by district to four-year terms. Elections are held in November of even - numbered years. Each Councilmember shares equal voting powers on all items coming before the Council. The Council meets annually to select one member as Mayor and another as Mayor Pro-Tem. The City Manager, City Attorney, members of all advisory boards, commissions and committees are appointed by the City Council. 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.
The City includes 18 parks, a performing arts center, an equestrian arena and a municipal pool.
The community also enjoys the day use recreational preserved 900-acre Wildwood Canyon State Park and the 200-acre Yucaipa Regional Park (part of the San Bernardino County park system) with 3 recreational lakes and camping. The highly ranked Yucaipa-Calimesa Joint Unified School District has an outstanding reputation. In addition, Crafton Hills College provides opportunities for higher education including offerings of more than 50 majors in the liberal arts and sciences, vocations and technical studies. Rounding out the community is 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, the facility opens to a stage with an adjoining 14,000 sq. ft. open air plaza in Uptown Park for large audiences. The YPAC serves as an anchor within the Historic Uptown district of Yucaipa providing a venue for concerts, dance, theatre, galas, and events.
Services provided to residents include police protection, fire suppression, paramedic services, the construction and maintenance of streets and infrastructure, planning and zoning, building and safety permitting and inspecting, engineering, recreational activities, enrichment programs and general administration. Other services are provided by San Bernardino County, Yucaipa - City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 0 FAX 909/790-9203 4 e-mail: [email protected]
Calimesa 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).
The City's annual operating and capital budgets are adopted by resolutions for the fiscal year that begin July 1st. The budget document is categorized into organizational units referred to as Funds, Departments and Divisions. Actual expenditures of each Fund cannot exceed amounts budgeted within the objects of salaries and benefits, operations and capital. The City Council reviews and approves all changes to the budgets.
ECONOMIC CONDITION AND OUTLOOK
Yucaipa is an established suburban bedroom community. Many residents commute for employment to other cities within the region. Accordingly, the General Fund's primary revenue stream continues to be property tax. The financial impact of Proposition 13 is a long-term smoothing of property tax revenue received. As such, the steady increase in property tax revenue is anticipated to continue regardless of the heating or cooling of the local real estate market. In the current fiscal year, property tax revenue totaled $14.7 million, a 6.5% increase.
Economic development projects including the revitalization of Yucaipa's Historic Uptown and the Yucaipa Pointe project have led to a trend of increasing sales tax revenue to establish a significant secondary revenue stream to the General Fund. In the current fiscal year, sales tax revenue totaled $5.5 million, a 3.7% increase. Regionally, sales tax revenue is forecasted to flatten year - over -year. However, within the city limits, new retail and commercial businesses are expected to open and generate sales tax revenue to continue the trend of overall sales tax revenue increases.
Several projects in various stages hold economic potential for the community and the City has stayed ahead of the curve on providing the necessary infrastructure for development. As an example, the City constructed drainage infrastructure that 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 recently completed. Each project plays a vital role in the overall economic development strategy pursued by the City Council. • College Village Specific Plan
• Widening Yucaipa Boulevard from 15th Street to Interstate 10, including utility undergrounding and sewer and water improvements (Phase III) • Historic Uptown Revitalization
• Wildwood Canyon Interchange
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 4 FAX 909/790-9203 ♦ e-mail: [email protected]
• 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
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 without debt financing include: the Community Park and Community Center, City Hall, Fire Station #3, the Police Station, the Yucaipa Performing Arts Center, El Dorado Park, and the new City Yard.
Infrastructure improvements that have been self -financed include: the Widening of Yucaipa Boulevard, the Live Oak / 1-10 Interchange, and numerous drainage and park improvement projects.
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 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 of $5 million 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. The Economic Uncertainties Contingency totals $1 million. This account may be used if actual General Fund revenue is at least 30% less than budgeted. Neither balance was utilized during the fiscal year.
Acknowledgments
The Government Finance Officers Association (GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting to Cities that publish an easily readable and efficiently organized Annual Comprehensive Financial Report, the contents of which conform to the program standards. Such reports must also satisfy both U.S. GAAP and applicable legal requirements. We believe that our current Annual Comprehensive Financial Report conforms to the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to consider its eligibility for the certificate.
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 ♦ FAX 909/790-9203 ♦ e-mail: [email protected] iv
We would like to express our appreciation to the City Council for their ongoing oversight of the financial affairs of the City. We also thank City staff members with special appreciation to the Finance Department for their continued effort to provide timely and accurate financial data to City management and to Van Lant & Fankhanel LLP, the City's independent auditors, who assisted and contributed to the preparation of this report.
Respectfully submitted,
Chris Mann
City Manager
Phillip White, CPA
Director of Finance
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 4 FAX 909/790-9203 0 e-mail: [email protected]
City of Yucaipa
List of Principal Officials
June 30, 2023
City Council
Mayor
District 4
Justin Beaver
Mayor Pro Tem
District 3
Bobby Duncan
Council Member
District 1
Matt Garner
Council Member
District 2
Chris Venable
Council Member
District 5
Jon Thorp
Administration
City Manager Chris Mann
Assistant City Manager Jennifer Crawford
City Attorney Steven Graham
Department Heads
Captain of Police
Michael Walker
Director of Community Services
Megan Wolfe
Director of Development Services
Fermin Preciado
Director of Finance
Phillip White
Director of General Services/City Clerk
Ana Sauseda
Director of Governmental Affairs
Joe Pradetto
Fire Chief
Grant Malinowski
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FINANCIAL SECTION
Van Lant&
VL,
Fankhanel,LLP
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, 2023, 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, 2023, 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 Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the 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.
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.
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 I
Van Lant & Fankhanel, LLP
29970 Technology Drive. Suite 105 A
(vlurrieta. CA 92563
909.856.6879
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.
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 2 used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with 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 Government Auditing Standards, we have also issued a report dated December 21, 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 Govemment Auditing Standards in considering the City's internal control over financial reporting and compliance.
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December 21, 2023
3 MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Yucaipa (City), we offer Management's Discussion and Analysis (MD&A) as a narrative overview of the City of Yucaipa's financial activities for the fiscal year ended June 30, 2023. To obtain a complete picture of the Yucaipa's financial condition, this MD&A should be read in conjunction with the Letter of Transmittal and the basic financial statements.
FINANCIAL HIGHLIGHTS
➢ Government -wide net position increased by approximately $2.1 million or 0.9% to $233.5 million as a result of operations.
The total revenues from all sources were approximately $54.5 million. The total cost of all City programs was approximately $52.4 million. Depreciation expense of $6.0 million is included in this amount.
➢ The General Fund reported revenues and transfers in of $39.7 million and expenditures and transfers out of $40.0 million for a decrease in fund balance of a ($0.3) million. ➢ At the end of Fiscal Year (FY) 2022-2023, the Unassigned Fund Balance in the General Fund was approximately $15.0 million, or 45.3% of the General Fund's total expenditures.
This represents an increase of $4.2 million in Unassigned Fund Balance. ➢ The June 30, 2023 Committed Fund Balance in the General Fund was approximately $14.7 million and includes the following:
1. Committed for Reserve for Emergency Operating Contingency $ 5,000,000
2. Committed for Reserve for Economic Stabilization 1,000,000
3. Committed Fund Balance for Fire Protection Services 8,660,463 Total 14,660,463
OVERVIEW OF THE FINANCIAL STATEMENTS
The MD&A 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 1) Government -wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Financial Statements. This report also contains required supplementary information in addition to other supplementary information.
Government -wide Financial Statements. The government -wide financial statements are designed to provide readers an overview of the City's finances. The government -wide statements report assets, deferred outflows of resources, liabilities, and deferred inflows of resources using the accrual basis of accounting which is like private sector accounting. Revenue is recognized as it is earned, and expenses are reported as incurred regardless of the timing of cash flow. The government -wide financial statements include the Statement of Net Position and the Statement of Activities.
The Statement of Net Position presents the balance sheet with "net position" defined as the difference between assets plus deferred outflows of resources minus liabilities minus deferred 4 inflows of resources. 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 deteriorating.
The Statement of Activities presents activity information on the net cost of each governmental function (activity) during the fiscal year. This statement also identifies the amount of general revenues received during the year.
The government -wide financial statements are included on pages 11 and 12.
Fund Financial Statements. Specific revenues and spending for a particular purpose are monitored using accounting "Funds", or self -balancing sets of accounts. Yucaipa utilizes three categories of Funds: Governmental Funds, Proprietary Funds, and Fiduciary Funds.
Governmental Funds (General Fund, Special Revenue Funds and Capital Projects Funds) utilize the current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized when they are both measurable and available. Expenditures are recorded as incurred.
The modified accrual basis of accounting use for 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. The proprietary fund statements provide financial information for the Internal Service Fund using the accrual basis of accounting method.
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.
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.
5 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 $233.5 million as of June 30, 2023. This represents an increase from the previous year by the amount of $2.1 million. See Table 1, below, for a comparative analysis of net position between the fiscal years ended June 30, 2023 and June 30, 2022.
Table 1
Net Position
Governmental Activities
Fiscal Year Ended June 30
2023
2022
Current and other Assets
S 62.080,606
S 59.600.336
Capital Assets, Net
191.562.417
189?93.6SS
Total Assets
253.643,023
24S.S94.024
Deferred Outflo%vs of Resources
3.9S4, 740
2.003.136
Current Liabilities
13.920,328
12.029.944
Long Tern Liabilities
9,306.445
5.3.10.312
Total Liabilities
23.226,773
17.360.256
Deferred Inflows of Resources
922.188
2.145,301
Net Position:
Net Ins estmeiit in Capital Assets
191.562.417
189.293,6SS
Restricted
11.632.553
1 7.S62.91 S
Unrestricted
30.283.S32
24.2-14.997
Total Net Position
S 233.478.802
S 231.391,603
A large portion of the City's net position, $191.6 million, reflects its investment in capital assets (i.e., land, buildings, machinery, equipment and infrastructure). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for fixture spending. $11.6 million, or 5.0% of total net position is considered "restricted" and represents resources that are subject to external spending restrictions. This component of net position includes accumulated resources from State and Federal grants. The remaining balance of net position of $30.3 million, is considered "unrestricted" and may be used to meet the government's ongoing obligations. 0 The following condensed summary of activities reflects that net position increased by approximately $2.1 million during the year. The summary reflects an increase in total revenues in the amount of approximately $4.4 million from the previous year. Charges for services had a significant increase and all general revenues except miscellaneous reported increases.
The summary also reflects an increase in total expenses of $7.2 million from the previous year.
The increase is comprised of the incremental pension cost reported in the general government function ($2.6 million), the increased cost of public safety ($1.5 million), development services ($1.9 million), and community services ($1.1 million).
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/Misc
Total Revenues
Expenses
Public Safety
Public Works
General Government
Community Services
Community Development
Building and Safety
Total Expenses
Increase in Net Position
Beginning Net Position
Ending Net Position
Table 2
Summary of Activities
Governmental Activities
Fiscal Year Ended June 30
2023
$ 16,329,217
4,710,866
4,498,377
14,702,749
5,488,377
2,098,917
6,425,960
216,865
54.471.328
19,525,389
17,408,927
7,564,205
4,629,458
1,544,928
1,711,222
52,384,129
2,087,199
231.391.603
$ 233,478,802
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
18,010,685
14,859,754
4,943,392
3,520,861
2,724,779
1,163,594
45.223.065
4,854,735
226,536,868
$ 231,391,603
7 Table 3
Revenues by Source — Governmental Activities
Tales
Property
Sales and Use
Franchise Fees
Doctunerrtary Transfer
Other Taxes
Vehicle License Fees
Investment Income
1\41scellaneous
Charges for Services
Operating Grants and
Capital Grants and Contributions
Total
For the Fiscal Year Ended
June 30. 2023 June 30. 2022
Amount ° o of Total Amount ° o of Total
$14.702.749
27.09'0
$13.802.354
27.690
5.488, 377
10.1°'0
5.299.43 3
10.6%
1.8 30.862
3.4%
1.672.542
3. �° o
23 8.0 18
0.4010
318.285
0.600
30.037
0.1°0
23.658
0.0°0
6.425.960
11.8%
5.9 31.67 3
11.8%
11.95 5
0.00o
(187,606)
-0.40 0
204.910
0.4%
460.441
0.99,16
16.329.2117
30.09%
7A77, 356
14.90'0
4.710.866
8.60,10
5.918,900
11.99,10
4.498, 377
S.31%
9.340.764
18.79'0
$ 54.471.328
100%
$ 50.077.800
1000'0
FINANCIAL ANALYSIS OF THE CITY' S FUNDS
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 finds reported combined ending fund balances of $44.2 million, an increase of $1.9 million in comparison with the prior year. The General Fund has a fund balance of $50.7 million, while all other governmental funds combined have a total fund deficit of $6.5 million. This is due primarily to long-term deficit spending in capital projects funds requiring interfund borrowings 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. n
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, 2023, the Unassigned Fund Balance of the General Fund is $15.0 million. Included in the $14.7 million Committed Fund Balance is a $5.0 million Emergency Contingency commitment, a $1.0 million Economic Stabilization commitment, and $8.7 million committed to Fire Protection. The General Fund also reports $21.0 million in Nonspendable Fund Balance bringing the total Fund Balance to $50.7 million as of June 30, 2023.
The General Fund Fund Balance decreased by $0.3 million during the fiscal year. The change in Fund Balance in the prior fiscal year was a decrease of $1.4 million.
The differences in General Fund revenues from the total budgeted estimates are as follows:
2022/23 2022/23
Actual to
Description
Budget
Actual
Variance
Budget %
Property Tax
$ 13,392,875
$13,615,398
$ 222,523
101.7%
Sales Tax
5,164,000
5,488,377
324,377
106.3%
Charges for Services 6,179,724
Other Taxes
1,760,570
Other Governmental
6,505,988
Licenses & Permits
1,044,764
Investment Income
105,000
Miscellaneous
2,360,320
6,342,265
1,991,636
6,595,170
2,117,419
214,182
162,541
231,066
89,182
1,072,655
109,182
162,455 (2,197,865)
102.6%
113.1%
101.4%
202.7%
204.0%
6.9%
Transfers In 3,403,210 3,206,571 (196,639) 94.2%
39,916,451 39,733,473 (182,978) 99.5%
During FY 2022-2023, the City experienced increases among most revenue categories including Property Tax, Sales and Use Tax, Charges for Services, and Licenses and Permits. Investment income increased compared to the prior year.
Miscellaneous Special Revenue Fund:
The Miscellaneous Special Revenue Fund primarily accounts for grant funding restricted for specific purposes. This Fund is used to report remaining American Rescue Plan Act (ARPA) balances. With the exception of ARPA, the Miscellaneous Special Revenue Fund operates primarily on a reimbursement basis meaning that revenues are collected after expenditures are incurred. In FY 2022-2023, Fund Balance decreased by $0.8 million.
Capital Proiects Funds:
Development Impact Fees
The Development Impact Fees Capital Projects Fund is used to account for the City's Development Impact Fee Program. Revenues are comprised of impact fees charged for new development.
Accumulated revenues are spent on constructing the infrastructure necessary to service the new development. In FY 2022-2023, Fund Balance decreased by $1.2 million.
Facilities Construction
The Facilities Construction Capital Projects Fund is used as the City's primary capital projects fund. In FY 2022-2023, Fund Balance increased by $1.7 million.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. As of June 30, 2023 the City's investment in capital assets is valued at $191.6 million. This investment includes land, infrastructure, buildings and improvements, equipment and construction -in -progress. The City does not report any capital related debt.
This component of net position increased approximately $2.3 million during the fiscal year which is net of deprecation expense of $6.0 million. Refer to Note 5 in the financial statements for detailed information.
Table 4
City of Yucaipa
Recorded Capital Assets at Year -End
(Net of Depreciation)
Land/Right of Way
$ 64,184,888
Infrastructure
93,705,787
Buildings and Improvements
4,096,283
Equipment / Vehicles
2,075,107
Construction -in -Progress
27,500,3 52
Total Capital Assets
$ 191,562,417
Long-term Debt. As of June 30, 2023, the City had no debt outstanding. Long liabilities are comprised of the Net Pension Liability, the Total Other Post -employment Benefits Liability, and compensated absences which are described in Note 6 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 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.
10 BASIC FINANCIAL STATEMENTS
City of Yucaipa
Statement of Net Position
June 30, 2023
Governmental
Activities
ASSETS
Cash and Investments
$ 52,256,964
Restricted Cash and Investments
2,396,340
Receivables:
Accounts
2,215,915
Interest
272,993
Due From Other Governments
4,472,306
Notes and Loans
280,492
Leases
51,904
Prepaid Items
133,692
Capital Assets, Not Being Depreciated
91,685,240
Capital Assets, Being Depreciated, Net of Accumulated Depreciation 99,877,177
Total Assets
253,643,023
DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 421,810
Pension Related Items 3,562,930
Total Deferred Outflows of Resources 3,984,740
LIABILITIES
Accounts Payable
4,962,394
Accrued Liabilities
439,817
Deposits Payable
1,460,660
Unearned Revenue
6,916,216
Noncurrent Liabilities:
Compensated Absences, Due Within One Year
147,340
Claims Liability, Due Within One Year
141,241
Compensated Absences, Due in More Than One Year
442,021
Net Pension Liability
6,439,652
Total OPEB Liability
2,277,432
Total Liabilities
23,226,773
DEFERRED INFLOWS OF RESOURCES
Lease Related Items 51,904
OPEB Related Items 560,614
Pension Related Items 309,670
Total Deferred Inflows of Resources 922,188
NET POSITION
Net Investment in Capital Assets
191,562,417
Restricted for:
Public Safety
1,793,531
Public Works/Transportation
4,712,120
Community Development
1,101,382
Community Services/Public Education
4,025,520
Unrestricted
30,283,832
Total Net Position
$ 233,478,802
The accompanying notes are an integral part of this statement 11 City of Yucaipa
Statement of Activities
For the Year Ended June 30, 2023
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
$ 7,564,205
$ 4,263,876
$ 732,931
$ -
$ (2,567,398)
Community Development
1,544,928
519,258
830,149
-
(195,521)
Building and Safety
1,711,222
2,453,561
-
-
742,339
Public Works
17,408,927
7,356,290
2,297,243
4,498,377
(3,257,017)
Public Safety
19,525,389
79,886
850,543
-
(18,594,960)
Community Services
4,629,458
1,656,346
-
(2,973,112)
Total Governmental Activities
$ 52,384,129
$ 16,329,217
$ 4,710,866
$ 4,498,377
(26,845,669)
General Revenues:
Taxes:
Property
Sales and Use
Franchise
Documentary Transfer
Other
Vehicle License Fees, Unrestricted
Investment Income
Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning of Year, Restated
Net Position - End of Year
The accompanying notes are an integral part of this statement. 14,702,749
5,488,377
1,830,862
238,018
30,037
6,425,960
11,955
204,910
28,932,868
2,087,199
231,391,603
$ 233,478,802
12 City of Yucaipa
Balance Sheet
Governmental Funds
June 30, 2023
Special
Revenue
General Miscellaneous
Capital Projects
Development
Impact Facilities
Fees Construction
ASSETS
Cash and Investments
$ 24,515,693
$ 2,121,209
$ -
$ 12,801,618
Restricted Cash and Investments
1,414,055
-
982,285
-
Receivables:
Accounts
1,802, 665
12,789
-
-
Interest
233,341
194
17,534
6,653
Notes and Loans
26,986
-
-
-
Leases
51,904
-
-
Due From Other Governments
1,535,520
1,020,813
349,650
-
Due From Other Funds
5,019,309
-
-
761,000
Advances to Other Funds
20,926,216
184,191
-
-
Prepaid Items
103,437
-
26,875
-
Total Assets
$ 55,629,126
$ 3,339,196
$ 1,376,344
$ 13,569,271
LIABILITIES
Accounts Payable
$ 2,264,214
$ 43,660
$ 2,229,104 $ 138,959
Accrued Liabilities
408,388
-
- -
Deposits Payable
1,414,055
45,569
336
Due to Other Funds
-
6,623
4,298,375 -
Unearned Revenue
15,000
2,401,216
- 4,500,000
Advances From Other Funds
-
-
18,839,574 -
Total Liabilities
4,101,657
2,497,068
25,367,389 4,638,959
DEFERRED INFLOWS OF RESOURCES
Lease Related 51,904 - - -
Unavailable Revenues 793,098 1,002,115 - -
Total Deferred Inflows of Resources 845,002 1,002,115 - -
FUND BALANCES
Nonspendable
21,029,653 - - -
Restricted
- - - -
Committed
14,660,463 - - -
Assigned
- - - 8,930,312
Unassigned
14,992,351 (159,987) (23,991,045) -
Total Fund Balances
50,682,467 (159,987) (23,991,045) 8,930,312
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 55,629,126 $ 3,339,196 $ 1,376,344 $ 13,569,271 The accompanying notes are an integral part of this statement. 13 Total
Non -Major Governmental
Funds Funds
$ 11,907,641 $ 51,346,161
- 2,396,340
396,732
2,212,186
13,652
271,374
253,506
280,492
-
51,904
1,566,323
4,472,306
-
5,780,309
-
21,110,407
3,380
133,692
$ 14,141,234 $ 88,055,171
$ 284,350
$ 4,960,287
31,429
439,817
700
1,460,660
1,475,311
5,780,309
-
6,916,216
2,270,833
21,110,407
4,062,623 40,667,696
- 51,904
1,313,764 3,108,977
1,313,764 3,160,881
3,380 21,033,033
11,128, 786 11,128, 786
- 14,660,463
8,930,312
(2,367,319) (11,526,000)
8,764,847 44,226,594
$ 14,141,234 $ 88,055,171
14 THIS PAGE INTENTIONALLY LEFT BLANK
City of Yucaipa
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position
June 30, 2023
Fund balances of governmental funds $ 44,226,594
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not considered current financial resources and therefore are different than the governmental funds balance sheet:
Capital Assets Not Being Depreciated 91,685,240
Capital Assets Being Depreciated 275,653,327
Accumulated Depreciation (175,776,150)
Long-term debt obligations are not due and payable in the current period and, therefore, are not reported in the funds:
Compensated Absences (589,361)
Net Pension Liability (6,439,652)
Total OPEB Liability (2,277,432)
Amounts for deferred inflows and deferred outflows related to the City's Pension and OPEB Liablities are not reported in the funds:
Deferred Outflows Related to Pensions
3,562,930
Deferred Inflows Related to Pensions
(309,670)
Deferred Outflows Related to OPEB
421,810
Deferred Inflows Related to OPEB
(560,614)
The internal service fund is used by management to charge costs of actitivies 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. but are excluded from the governmental funds balance sheet. 772,803 Other long-term assets are not available to pay for current -period expenditures and, therefore, are deferred in the funds. 3,108,977
Net position of governmental activities $ 233,478,802
The accompanying notes are an integral part of this statement. 15 City of Yucaipa
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
Special
Revenue
Capital Projects
Development
Impact
Facilities
General
Miscellaneous
Fees
Construction
REVENUES
Taxes:
Property
$ 13,615,398
$ -
$
$ -
Sales and Use
5,488,377
-
-
Franchise
1,723,581
-
-
-
Documentary Transfer
238,018
-
-
-
Other
30,037
-
-
-
Licenses and Permits
2,117,419
-
-
-
Fines and Forfeitures
34,445
16,208
-
-
Charges for Services
6,342,265
70,625
3,404,103
20,000
Intergovernmental
6,595,170
2,592,240
1,503,423
-
Investment Income
214,182
(37,256)
18,654
82,348
Other
128,010
28,611
2,918,762
-
Total Revenues
36,526,902
2,670,428
7,844,942
102,348
EXPENDITURES
Current:
General Government
5,727,811
98,686
-
46,493
Community Development
871,119
-
-
-
Building and Safety
1,704,699
6,523
-
-
Public Works
3,379,344
724,066
140,320
1,105,480
Public Safety
17,014,377
32,875
7,056
-
Community Services
4,340,141
-
-
-
Capital Outlay
56,512
34,272
12,849,651
374,771
Total Expenditures
33,094,003
896,422
12,997,027
1,526,744
Excess (Deficiency) of Revenues
over Expenditures
3,432,899
1,774,006
(5,152,085)
(1,424,396)
OTHER FINANCING SOURCES (USES)
Transfers In
3,206,571
31,967
4,375,008
3,103,288
Transfers Out
(6,906,422)
(2,624,376)
(470,323)
(22,170)
Total Other Financing Sources (Uses)
(3,699,851)
(2,592,409)
3,904,685
3,081,118
Net Change in Fund Balances
(266,952)
(818,403)
(1,247,400)
1,656,722
Fund Balances, Beginning of Year
50,949,419
658,416
(22,743,645)
7,273,590
Fund Balances, End of Year
$ 50,682,467
$ (159,987)
$ (23,991,045)
$ 8,930,312
16 Total
Non -Major Governmental
Funds Funds
$ 1,087,351
$ 14,702,749
-
5,488,377
107,280
1,830,861
-
238,018
-
30,037
-
2,117,419
-
50,653
1,124,122
10,961,115
6,426,048
17,116,881
63,585
341,513
-
3,075,383
8,808,386
55,953,006
118,512
5,991,502
-
871,119
-
1,711,222
1,515,881
6,865,091
1,648,062
18,702,370
69,227
4,409,368
1,509,569
14,824,775
4,861,251 53,375,447
3,947,135 2,577,559
4,178,998 14,895,832
(5,502,386) (15,525,677)
(1,323,388) (629,845)
2,623,747 1,947,714
6.141,100 42,278,880
$ 8,764,847 $ 44,226,594
The accompanying notes are an integral part of this statement. 17 City of Yucaipa
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities For the Year Ended June 30, 2023
Net change in fund balances - total governmental funds $ 1,947,714 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:
Additions 8,465,824
Depreciation (5,967,643)
Disposals (229,452)
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. 152,146
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. (1,481,678) 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 2,067,016
Deferred Inflows Related to Pensions 1,697,909
Deferred Outflows Related to Total OPEB Liability (85,412) Deferred Inflows Related to Total OPEB Liability (503,092) 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 (63,695)
Net Pension Liability (4,311,329)
Total OPEB Liability 398,891
Change in net position of governmental activities $ 2,087,199 The accompanying notes are an integral part of this statement. 18 City of Yucaipa
Statement of Net Position
Proprietary Fund
June 30, 2023
ASSETS
Current:
Cash and Investments
Accounts Receivable
Interest Receivable
Total Current Assets
LIABILITIES
Current:
Accounts Payable
Noncurrent:
Claims Payable
Total Liabilities
NET POSITION
Unrestricted
Governmental
Activities -
Internal Service
Fund
$ 910,803
3,729
1,619
916,151
2,107
141,241
143,348
$ 772,803
The accompanying notes are an integral part of this statement. 19 City of Yucaipa
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Fund
For the Year Ended June 30, 2023
Governmental
Activities -
Internal Service
Fund
OPERATING REVENUES
Other Income $ 3,729
OPERATING EXPENSES
Professional Services 905
Property and Liability Premiums 491,702
Total Operating Expenses 492,607
Operating Income (Loss) (488,878)
NON -OPERATING REVENUES (EXPENSES)
Investment Income 11,179
Income (Loss) before contributions and transfers (477,699) Transfers In 629,845
Change in Net Position 152,146
Total Net Position, Beginning of Year 620,657
Total Net Position, End of Year
The accompanying notes are an integral part of this statement. $ 772,803
City of Yucaipa
Statement of Cash Flows
Proprietary Fund
For the Year Ended June 30, 2023
Governmental
Activities -
Internal Service
Fund
Cash Flows from Operating Activities
Cash Paid for Premiums
$ (504,251)
Cash Paid for Claims
(123,581)
Net Cash Provided (Used) by Operating Activities
(627,832)
Cash Flows from Non -Capital Financing Activities
Transfers from Other Funds
629,845
Cash Flows from Investing Activities
Interest Received
9,560
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
(Increase) Decrease in Accounts Receivable
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Claim Liabilities
Net Cash Provided (Used) By Operating Activities
The accompanying notes are an integral part of this statement. 11,573
899,230
$ 910,803
$ (488,878)
(3,729)
(11,644)
(123,581)
$ (627,832)
21 City of Yucaipa
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Successor Agency
Private -Purpose
Custodial
Trust Fund
Funds
ASSETS
Cash and Investments
$ 702,997
$ 2,714,555
Cash and Investments with Fiscal Agent
575,164
2,442,327
Accounts Receivable
-
14,616
Interest Receivable
31 -
Prepaid Items
398
51 Total Assets
1,278,590
5,171,549
LIABILITIES
Accounts Payable
495
2,244
Accrued Liabilities
3,845
-
Interest Payable
110,641
-
Bonds Payable
6,349,866
-
Total Liabilities
6,464,847
2,244
NET POSITION
Restricted for Successor Agency Activities
(5,186,257)
-
Restricted for Individuals and Organizations
-
5,169,305
$ (5,186,257)
$ 5,169,305
The accompanying notes are an integral part of this statement. 22 City of Yucaipa
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
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
$ 711,208 $ 2,285,788
10,057 43,504
721,265 2,329,292
185,402
333,265
94,497
2,183,316
518,667 2,277,813
202,598 51,479
(5,388,855) 5,117,826
$ (5,186,257) $ 5,169,305
The accompanying notes are an integral part of this statement. 23 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
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 November 27, 1989 under the 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.
24 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
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. Measurable 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.
25 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
1) 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.
Proprietary 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. 26 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
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 Miscellaneous Special Revenue Fund accounts for various grant revenues received for restricted purposes.
The Development Impact Fees Capital Projects Fund accounts for and reports financial resources collected from development impact fees on new development and restricted for construction of public facilities, park facilities, drainage facilities, traffic facilities, and fire facilities.
The Facilities Construction Capital Projects Fund accounts for and reports financial resources assigned to the construction of various government 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 Funds 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.
27 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
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, 2023.
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 three times 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.
28 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
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 $6,916,216 in unearned revenue reported as of June 30, 2023 represents grant 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 finance these 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 Outflowslinflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents 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.
29 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
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 governmental 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.
Q) 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) Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Yucaipa's California Public Employees' Retirement System (CaIPERS) 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.
S) Other Postemployment Benefits (OPEB)
For purposes of measuring the Total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis. For this purpose, benefit payments are 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:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
T) 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.
30 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —Continued 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 June 30, 2023 the balances of the lease receivable and deferred inflow of resources were $51,904 and $51,904, respectively.
2) CASH AND INVESTMENTS
Cash and investments are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and Investments $ 52,256,964
Restricted Cash and Investments 2,396,340
Statement of Fiduciary Net Postion:
Cash and Investments 3,417,552
Cash and Investments with Fiscal Agent 3,017,491
Total Cash and Investments $ 61,088,347
Cash and Investments consist of the following:
Cash on Hand $ 2,950
Deposits with Financial Institutions 758,380
Investments 60, 327, 017
Total Cash and Investments $ 61,088,347
Investments Authorized by 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.
31 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
2) CASH AND INVESTMENTS - Continued
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
5 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
N/A
20%
10%
Money Market Mutual Funds
Yes
N/A
20%
10%
Mortgage Pass -through Securities
No
5 years
20%
None
County Pooled Investment Funds
No
N/A
None
None
Local Agency Investment Fund (LAIF)
Yes
N/A
None
None
Supranationals
Yes
5 years
30%
None
JPA Pools (other investment pools)
No
N/A
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.
Maximum
Maximum
Authorized
Maximum
Percentage
Investment
Investment Type
Maturity
of Portfolio
In One Issuer
U.S. Treasury Obligations
5 years
None
None
U.S. Agency Securities
5 years
None
None
Banker's Acceptances
180 days
40%
30%
Commercial Paper
270 days
25%
10%
Negotiable Certificates of Deposit
5 years
30%
None
Medium Term Notes
5 years
30%
5%
Money Market Mutual Funds
N/A
20%
10%
Repurchase Agreements
270 days
30%
None
Investment Contracts
30 years
None
None
Local Agency Investment Fund (LAIF)
N/A
$50 million
None
32 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
2) CASH AND INVESTMENTS - Continued
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest 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
U.S. Treasury Obligations
U.S. Agency Securities
Supranational Agency Securities
Municipal Bonds
Medium Term Notes
Certificates of Deposit
LAIF
Money Market Mutual Funds
Held by Bond Trustee:
LAIF
Money Market Mutual Funds
Total Pooled Investments
Disclosures Relatinq to Credit Risk
Total
Remaining Maturity (in Months)
12 Months or Less 1 to 2 Years 2 to 5 Years
$ 28,752,434
$ 13,195,167
$ 9,736,499 $ 5,820,768
2,227,845
982,500
1,245,345 -
230,827
-
230,827 -
180,187
-
- 180,187
3,452,028
442,547
736,329 2,273,152
948,369
948,369
- -
20, 007, 913
20, 007, 913
- -
1,509,922
1,509,922
- -
45,657 45,657 - -
2,971,835 2,971,835 - -
$ 60, 327, 017 $ 40,103, 910 $ 11, 949, 000 $ 8,274,107 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.
Investment Type
Total
Minimum
Legal
Rating
AAA
A/AA
Rating not
BBB Required
U.S. Treasury Obligations
$ 28,752,434
N/A
$ -
$ 28,752,434 $
- $ -
U.S. Agency Securities
2,227,845
N/A
-
2,227,845
- -
Supranational Agency Securities
230,827
A-
230,827
-
- -
Municipal Bonds
180,187
A-
-
180,187
- -
Medium Term Notes
3,452,028
A-
939,670
2,205,515
306,843 -
Asset Backed Securities
948,369
N/A
948,369
-
- -
LAIF
20,007,913
N/A
-
-
- 20,007,913
Money Market Mutual Funds
1,509,922
N/A
1,509,922
-
- -
Held by Bond Trustee:
LAIF
45,657
N/A
-
-
- 45,657
Money Market Mutual Funds
2,971,835
AAA
2,971,835
-
- -
Total Pooled Investments
$ 60,327,017
$ 6,600,623
$ 33,365,981 $
306,843 $ 20,053,570
33 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
2) CASH AND INVESTMENTS — Continued
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2023, 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, 2023, 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 LAIF). As of June 30, 2023, 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.
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, 2023:
34 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
2) CASH AND INVESTMENTS - Continued
Fair Value Hierarchy
Investment Type Total Level 1 Level 2 Level 3
U.S. Treasury Obligations $ 28,752,434 $ 28,752,434 $ - $ U.S. Agency Securities 2,227,845 - 2,227,845 -
Supranational Agency Securities 230,827 - 230,827 -
Municipal Bonds 180,187 - 180,187 -
Medium Term Notes 3,452,028 - 3,452,028 -
Total Pooled Investments $ 34,843,321 $ 28,752,434 $ 6,090,887 $ - Investment in State Investment Pool
The City is a voluntary participant in the LAW 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, 2023 are as follows:
Due From (Receivable) Due To (Payable) Amount
General Fund Miscellaneous Special Revenue $ 6,623
Development Impact Fees 3,537,375
Non -major Governmental Funds 1,475,311
Facilities Construction Development Impact Fees 761,000 Total $ 5,780,309
The interfund balance due to the General Fund was the result of short-term borrowings to cover deficit cash balances at June 30, 2023. The $761,000 due from non -major governmental funds is a result of short-term borrowings for capital projects. Interfund advances at June 30, 2023 are as follows:
Advances to Advances From
Other Funds (Receivable) Other Funds (Payable)
General Fund Development Impact Fees
Miscellaneous Special Revenue Development Impact Fees
General Fund Non -major Governmental Funds
Total Advances To/From Other Funds
Amount
$ 18,655,383
184,191
2,270,833
$ 21,110,407
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. 35 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS - Continued 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, 2023 are as follows:
TRANSFERS IN
Miscellaneous
Development
General
Special
Impact
Facilities
Internal
Non -Major
TRANSFERS OUT
Fund
Revenue
Fees
Construction
Service Fund
Funds
Total
General Fund
$ -
$
$ 1,076,487
$ 3,000,000
$ 629,845
$ 2,200,090
$ 6,906,422
Facilities Construction
22,170
-
-
-
-
-
22,170
Miscellaneous Special Revenue
2,082,090
-
459,955
-
-
82,331
2,624,376
Development Impact Fees
427,211
43,112
470,323
Non -Major Funds
675,100
31,967
2,838,566
103,288
-
1,853,465
5,502,386
$ 3,206,571
$ 31,967
$ 4,375,008
$ 3,103,288
$ 629,845
$ 4,178,998
$15,525,677
The transfers from the General Fund to Development Impact Fees was to fund development related capital projects The transfers from the General Fund to Non -Major Funds was to fund Paramedic Services. The $629,845 transfer to the Internal Service Fund was to cover future claims expenses. The $3,206,571 transfers from the various funds to the General Fund were to help fund various costs, including $2,082,090 of ARPA funds to cover Covid-related revenue loss.
The transfers from the Non -Major Funds to the other Non -Major Funds were to fund project costs for streets, parks, and various other public facilities.
4) NOTES AND LOANS RECEIVABLE
Notes and Loans Receivable at June 30, 2023 include $253,506 in loans relating to the City's Energy Independence Program, and $26,986 relating to the City's Fagade Improvement Program. Other Notes and Loans are offset by an allowance for doubtful accounts at a gross amount of $4,367,550. 36 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
5) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023 is as follows Beginning
Ending
Governmental Activities:
Balance
Increases
Decreases
Balance
Capital Assets Being Depreciated:
Buildings and Improvements
$ 15,194,683
$ -
$ (36,500)
$ 15,158,183
Equipment
3,225,117
359,194
(51,958)
3,532,353
Vehicles
3,797,134
127,626
(25,500)
3,899,260
Infrastructure
253, 048, 531
15,000
-
253, 063, 531
Total Depreciable Capital Assets
275,265,465
501,820
(113,958)
275,653,327
Less Accumulated Depreciation:
Buildings and Improvements
Equipment
Vehicles
Infrastructure
Total Accumulated Depreciation
Capital Assets, Net of Accumulated Depreciation
(10,676,061)
(422,339)
36,500
(11,061,900)
(2,253,132)
(338, 528)
48,860
(2,542,800)
(2,601,738)
(237, 468)
25,500
(2,813,706)
(154, 388, 436)
(4,969,308)
-
(159, 357, 744)
(169, 919, 367)
(5,967,643)
110,860
(175, 776,150)
105, 346, 098
(5,465,823)
(3,098)
99, 877,177
Capital Assets, Not Being Depreciated:
Land
4,603,294
446,797
- 5,050,091
Right of Way
58,681,640
453,157
- 59,134,797
Construction in Progress
23,519,293
7,092,695
(3,111,636) 27,500,352
Total Capital Assets Not Being Depreciated
86,804,227
7,992,649
(3,111,636) 91,685,240
Total Capital Assets
$ 192,150,325
$ 2,526,826
$ (3,114,734) $ 191,562,417
*Included in the decreases to construction in progress is a prior period adjustment of $2,856,637 for prior year costs that are considered repairs and maintenance.
Depreciation expense was charged to the following functions in the Statement of Activities:
General Government
$ 295,292
Public Safety
823,019
Public Works
3,955,433
Community Development
673,809
Community Services
220,090
Total Depreciation Expense $ 5,967,643
37 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
6) CHANGES IN LONG-TERM LIABILITIES
The following is a summary of long-term liability activity, all of which will be liquidated by the General Fund, for the year ended June 30, 2023:
Beginning Ending Due Within Due Beyond
Balance Additions Deletions Balance One Year One Year
Governmental Activities:
Total OPEB Liability
$ 2,676,323 $ - $
398,891 $ 2,277,432 $
- $ 2,277,432
Net Pension Liability
2,128,323 4,311,329
- 6,439,652
- 6,439,652
Compensated Absences
525,666 457,600
393,905 589,361
147,340 442,021
Total
$ 5,330,312 $ 4, 768, 929 $
792,796 $ 9,306,445 $
147,340 $ 9,159,105
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation time. The balance of accumulated vacation time is reported as a liability in the Statement of Net Position. 7) FIDUCIARY FUND LONG-TERM DEBT
The following is a summary of long-term debt activity for the City's fiduciary fund for the year ended June 30, 2023:
Beginning
Ending
Due Within
Due Beyond
Balance Additions
Deletions
Balance
One Year
One Year
Tax Allocation Bonds:
1998
$ 265,000 $ -
$ 30,000
$ 235,000
$ 30,000
$ 205,000
2004
1,440,000 -
50,000
1,390,000
55,000
1,335,000
2010
4,845,000 -
135,000
4,710,000
140,000
4,570,000
Unamortized Premium
15,691 -
825
14,866
825
14,041
Total
$ 6,565,691 $ -
$ 215,825
$ 6,349,866
$ 225,825
$ 6,124, 041
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:
38 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
7) FIDUCIARY FUND LONG-TERM DEBT -Continued
Fiscal Year Ending
June 30,
Principal
Interest
Total
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
50,000
1,375
51,375
Totals
$ 235,000
$ 43,037
$ 278,037
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.
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,
Principal
Interest
Total
2024
$ 55,000
$ 67,011
$ 122,011
2025
60,000
64,329
124,329
2026
85,000
60,900
145,900
2027
85,000
56,862
141,862
2028
90,000
52,650
142,650
2029
90,000
48,263
138,263
2030
145,000
42,534
187,534
2031
150,000
35,250
185,250
2032
155,000
27,625
182,625
2033
160,000
19,750
179,750
2034
170,000
11,500
181,500
2035
145,000
3,625
148,625
Totals
$ 1,390.000
$ 490,299
$ 1,880,299
2010 Tax Allocation Bonds
On November 2, 2010, the Yucaipa Redevelopment Agency issued $6,030,000 of 2010 Tax Allocation Bonds.
The proceeds are to 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.
C
City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
7) FIDUCIARY FUND LONG-TERM DEBT— Continued
The bonds accrue interest at rates between 4.00% and 5.50% 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, 2023 was $4,710,000.
Future debt service requirements are as follows:
Fiscal Year Ending
June 30,
Principal
Interest
Total
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
135,000
222,622
357,622
2029-2033
825,000
993,831
1,818,831
2034-2038
1,715,000
684,700
2,399,700
2039-2041
1,500,000
126,500
1,626,500
$ 4,710,000
$ 2,982,460
$ 7,692,460
8) 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 (CaIPERS.) 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. 68.
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 (CaIPERS). 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, 2021 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2021 actuarial valuation report. This report is a publicly available valuation report that can be obtained at CaIPERS' website under Forms and Publications. 40 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
8) PENSION PLAN - Continued
The Plan's provisions and benefits in effect at June 30, 2023, 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
Miscellaneous
PEPRA
Prior to
On or after
January 1, 2013
January 1, 2013
2% @ 55
2% @ 62
5 years service
5 years service
monthly for life
monthly for life
55 62
2%
2%
7%
7.25%
11.61% + $440,996
7.76% + $7,952
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 CalPERS. 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, CaIPERS 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.
The City's required contribution for the unfunded liability and side fund was $448,948 in fiscal year 2023. The City's contributions to the Plan for the year ended June 30, 2023 were $1,006,968.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan of $6,439,652. 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, 2022, 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, 2021 rolled forward to June 30, 2022 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, 2022, and 2023 was as follows:
Proportion - June 30, 2022 0.11209%
Proportion - June 30, 2023 0.13762%
Change - Increase (Decrease) 0.02553%
41 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
8) PENSION PLAN - Continued
For the year ended June 30, 2023, the City recognized a pension expense of $1,553,373. At June 30, 2023, 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
$ 1,006,968
129,321
659,877
587,191
1,179, 573
86,613
223,057
$ 3,562,930 $ 309,670
$1,006,968 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, 2024. 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
2024
$ 632,439
2025
565,164
2026
327,221
2027
721,468
Actuarial Assumptions —The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:
Valuation date
June 30, 2021
Measurement date
June 30, 2022
Actuarial cost method
entry -age normal
Actuarial assumptions:
Discount rate
6.90%
Inflation
2.30%
Projected salary increase
(1)
Investment rate of return
6.90%
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 on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS Experience Study for the period from 2001 to 2019. Pre -retirement and Post - retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CaIPERS website. 42 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
8) PENSION PLAN - Continued
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, CalPERS 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
Real Return (1,2)
Global Equity - Cap Weighted
30%
4.54%
Global Equity - Non -Cap Weighted
12%
3.84%
Private Equity
13%
7.28%
Treasury
5%
0.27%
Mortgage -backed Securities
5%
0.50%
Investment Grade Corporates
10%
1.56%
High Yield
5%
2.27%
Emerging Market Debt
5%
2.48%
Private Debt
5%
3.57%
Real Assets
15%
3.21%
Leverage
-5%
-0.59%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.
Discount Rate — The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
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:
43 8) PENSION PLAN - Continued
City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
1% Decrease 5.90%
Net Pension Liability/(Asset) $ 10,635,603
Current Discount Rate 6.90%
Net Pension Liability/(Asset) $ 6,439,652
1% Increase 7.90%
Net Pension Liability/(Asset) $ 2,987,425
Pension Plan Fiduciary Net Position — Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. 9) 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 CaIPERS) of the health insurance premium ($149 and $151 for the calendar years 2022 and 2023 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, 2023, the City's pay-as-you-go costs were $28,747 and an implicit subsidy of $21,135.
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:
44 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
9) OTHER POSTEMPLOYMENT BENEFITS - Continued
Valuation Date
June 30, 2021
Actuarial Cost Method
Entry Age, Level Percent of Pay
Mortality
CalPERS 2000-2019 Experience Study
Age at Retirement
60 Health Care Trend Rate
6.00% for 2022, 5.50% for 2023, ultimate rate of 4.50% for 2031 and later years
Inflation Rate
3.00%
Salary Changes
3.00%
Discount Rate
3.69% - Bond Buyer 20-Bond GO index: June 30, 2022
1.92% - Bond Buyer 20-Bond GO index: June 30, 2021
Medical CPI
3.50% - used to project PERS statutory minimum benefit
Discount Rate — The discount rate used to measure the total OPEB liability was 3.69 percent and is based on the Bond Buyer 20-Bond GO index.
Changes in the Total OPEB Liability
Balance at June 30, 2022 (June 30, 2021 measurement date) Changes in the year:
Seance cost
Interest on the total OPEB liability
Changes in assumptions or other inputs
Benefit payments, including implicit subsidy
Net changes
Balance at June 30, 2023 (June 30, 2022 measurement date) Total OPEB
Liability (TOL)
$ 2,676,323
185,107
54,463
(588, 579)
(49, 882)
(398, 891)
$ 2,277,432
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-point lower or 1- percentage-point higher than the current discount rate:
1% Decrease Discount Rate 1% Increase
(2.69%) (3.69%) (4.69%)
Total OPEB liability $ 2,581,999 $ 2,277,432 $ 2,029,657 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 if 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 $ 1,985,207 $ 2,277,432 $ 2,644,477 9) OTHER POSTEMPLOYMENT BENEFITS - Continued
45 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB - For the year ended June 30, 2023, the City recognized OPEB expense of $233,075. 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 $ 43,462 $ - Differences Between Expected and Actual Experience - 47,494 Changes in Assumptions or Other Inputs 378,348 513,120
Total $ 421,810 $ 560,614
The $43,462 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ended June 30, 2024. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
Year Ending
June 30, Amount
2024
$ (6,495)
2025
(6,495)
2026
(6,495)
2027
(12, 362)
2028
(33,696)
Thereafter
(116, 723)
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 (CIRA), a joint powers authority of California municipalities, up to a maximum $15,000,000 per incident.
The membership of CIRA 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.
City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
10) SUMMARY DISCLOSURE OF SELF-INSURANCE CONTINGENCIES
Fiscal Claims Payable
Year Beginning of Year Additions
Claims Payable
Deletions End of Year
6/30/23 $ 264,822 $ 757 $ (124,338) $ 141,241
6/30/22 75,000 297,918 (108,096) 264,822
6/30/21 75,000 139,513 (139,513) 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.
As of June 30, 2023, deferral fees owed to the City for all types of development impact fees totaled approximately $222,283.
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. 47 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
12) COMMUNITY FACILITIES DISTRICT NO. 98-1 (CHAPMAN HEIGHTS) - Continued 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, 2023 is $14,185,000. 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 $1,078,871. 14) FUND BALANCE
The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental 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.
48 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
14) FUND BALANCE - Continued
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 2023, the contingency now remains at $5,000,000. • 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.
• 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.
The City's governmental fund balances at June 30, 2023, are presented below Miscellaneous
Development
Non -major
General
Special
Impact
Facilities
Governmental
Fund
Revenue Fund
Fees
Construction
Funds
Total
Nonspendable:
Advances to Other Funds
$20,926,216
$ -
$ -
$ -
$ -
$20,926,216
Prepaids
103,437
-
-
-
3,380
106,817
Restricted for:
Capital Projects
-
-
-
-
8,340
8,340
Public Works/Street Projects
-
-
-
-
4,712,120
4,712,120
Public Safety
-
-
-
-
1,793,531
1,793,531
Landscape & Lighting
-
-
-
-
3,089,313
3,089,313
Community Services/Education
-
-
-
-
1,525,482
1,525,482
Committed to:
Emergency Contingency
5,000,000
-
-
-
-
5,000,000
Economic Stabilization
1,000,000
-
-
-
-
1,000,000
Fire Protection
8,660,463
-
-
-
-
8,660,463
Assigned to:
Capital Projects
-
-
-
8,930,312
-
8,930,312
Unassigned
14,992,351
(159,987)
(23,991,045)
-
(2,367,319)
(11,526,000)
Total Fund Balances
$50,682,467
$ (159,987)
$ (23,991,045)
$ 8,930,312
$ 8,764,847
$44,226,594
49 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2023
15) ACCUMULATED FUND DEFICITS
At June 30, 2023, the following funds had deficit fund balances:
Major Funds — Special Revenue:
Miscellaneous
Major Funds - Capital Projects:
Development Impact Fees
Non -major Funds
Housing Authority
Air Quality Improvement
TDA Article 3
Low Water Crossings
(159,987)
(23,991,045)
(108,034)
(30,993)
(140,230)
(2,269,481)
Management's explanations for the resolution of accumulated fund deficits in the funds are summarized as follows:
Development Impact Fees Capital Projects 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.
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. 50 REQUIRED SUPPLEMENTARY INFORMATION
City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2023
Schedule of the City's Proportionate Share of the Net Pension Liability Last 10 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
2022
0.13762% $
6,439,652 $
4,920,339
130.88%
79.08%
2021
0.03935%
2,128, 323
4,304,091
49.45%
92.58%
2020
0.05085%
5,532,698
4,475, 311
123.63%
79.11 %
2019
0.04851 %
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%
2015
0.04376%
3,003,608
3,081,312
97.48%
83.14%
2014
0.04583%
2,851,533
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%. In 2023, the accounting discount rate changed from 7.15% to 6.90%.
*Fiscal year 2015 was the first year of implementation, therefore, 10 years of information are not yet available. 51 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2023
Schedule of Plan Contributions
Last 10 Years*
Contributions in
Relation to the
Contributions
Contractually
Actuarially Contribution
as a % of
Required
Determined Deficiency/ Covered
Covered
Fiscal Year Contributions
Contributions (Excess) Payroll
Payroll
2023
$ 1,006,968 $
(1,006,968) $
-
$ 5,825,390
17.29%
2022
856,580
(1,056,163)
(199, 583)
4,920,339
21.47%
2021
750,096
(1,000,022)
(249, 926)
4,304,091
23.23%
2020
687,263
(687,263)
-
4,475,311
15.36%
2019
614,613
(826,891)
(212,278)
4,036,015
20.49%
2018
502,982
(646,954)
(143,972)
3,643,825
17.75%
2017
451,203
(451,203)
-
3,496,726
12.90%
2016
416,057
(416,057)
-
3,362,231
12.37%
2015
553,517
(553, 517)
-
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, 6/30/2017, 6/30/2018, 6/30/2019, 6/30/2020, 6/30/2021
"Fiscal year 2015 was the first year of implementation, therefore, not all 10 years of information are available. 52 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2023
CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
Last 10 Years
Total OPEB Liability
Service cost
Interest on total OPEB 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 payroll
Total OPEB liability as a percentage of
covered -employee payroll
Measurement Period
2022 2021 2020
$ 185,107 $
154,728 $
142,461
54,463
60,116
65,155
-
(38,585)
-
(588,579)
224,819
196,730
(49,882)
(47,193)
(41,805)
(398,891)
353,885
362,541
2,676,323
2,322,438
1,959,897
$ 2,277.432 $ 2,676,323 $ 2,322,438
$ 5,777,443 $ 4,865,564 $ 5,131,471
39.42% 55.01 % 45.26%
*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 2023, the account discount rate changed from 1.92% to 3.69%. 53 Measurement Period
2019 2018 2017
$ 119,792 $
102,354 $
99,373
63,678
50,657
46,820
(39,127)
-
-
189,572
(104,868)
-
(26,360)
(28,231)
(19,085)
307,555
19,912
127,108
1,652, 342
1,632,430
1,505,322
$ 1,959,897 $ 1,652,342 $ 1,632,430
$ 4,750,449 $ 3,643,825 $ 3,496,726
41.26% 45.35% 46.68%
54 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2023
Schedule of Plan Contributions
for the City's OPEB Plan
Last 10 Years*
Contributions in
Relation to the
Contributions
Contractually Contractually Contribution
Covered as a % of
Required Required Deficiency/
Employee Covered
Fiscal Year Contributions Contributions (Excess)
Payroll Employee Payroll
2023
$ 43,462 $
(43,462) $
- $ 5,825,390
0.75%
2022
49,882
(49, 882)
- 5,777,443
0.86%
2021
47,193
(47,193)
- 4,865,564
0.97%
2020
41,805
(41,805)
- 5,131,471
0.81%
2019
26,360
(26, 360)
- 4,750,449
0.55%
2018
28,231
(28,231)
- 3,643,825
0.77%
2017
19,085
(19,085)
- 3,496,726
0.55%
Notes to the Schedule of Plan Contributions
Valuation Date: 6/30/2018, 6/30/2021
'`Fiscal year 2018 was the first year of implementation, therefore, not all 10 years of information are available. 55 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Fund
Year Ended June 30, 2023
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes:
Property Taxes
$ 13,392,875
$ 13,392,875
$ 13,615,398
$ 222,523
Sales and Use Taxes
5,164,000
5,164,000
5,488,377
324,377
Franchise Taxes
1,488,000
1,488,000
1,723,581
235,581
Documentary Transfer Tax
250,000
250,000
238,018
(11,982)
Other Taxes
22,570
22,570
30,037
7,467
Licenses and Permits
1,044,764
1,044,764
2,117,419
1,072,655
Fines and Forfeitures
36,000
36,000
34,445
(1,555)
Charges for Services
4,291,740
6,179,724
6,342,265
162,541
Intergovernmental
6,444,448
6,505,988
6,595,170
89,182
Investment Income
105,000
105,000
214,182
109,182
Other
119,542
2,324,320
128,010
(2,196,310)
Total Revenues
32,358,939
36,513,241
36,526,902
13,661
EXPENDITURES
Current:
General Government:
City Manager
1,285,863
1,601,767
1,517,813
83,954
City Council
75,585
75,585
65,019
10,566
General Services/City Clerk
1,045,778
1,119,931
894,251
225,680
Information Technology
1,910,626
1,953,208
1,405,695
547,513
Finance
1,285,182
1,322,471
1,237,840
84,631
Non -departmental
48,631
1,028,507
607,193
421,314
Community Development
1,178,637
1,208,541
871,119
337,422
Building and Safety
809,118
1,705,418
1,704,699
719
Public Works
3,983,636
3,961,021
3,379,344
581,677
Public Safety:
Police Services
12,130,256
12,130,256
11,919,453
210,803
Fire Protection Services
5,201,261
5,459,504
5,094,924
364,580
Community Services
4,815,468
5,520,267
4,340,141
1,180,126
Capital Outlay
-
56,520
56,512
8 Total Expenditures
33,770,041
37,142,996
33,094,003
4,048,993
Excess (Deficiency) of Revenues
over Expenditures
(1,411,102)
(629,755)
3,432,899
4,062,654
OTHER FINANCING SOURCES (USES)
Transfers In
4,031,056
3,403,210
3,206,571
(196,639)
Transfers Out
(2,619,955)
(7,157,908)
(6,906,422)
251,486
Total Other Financing Sources (Uses)
1,411,101
(3,754,698)
(3,699,851)
54,847
Net Change in Fund Balances
(1)
(4,384,453)
(266,952)
4,117,501
Fund Balances, Beginning of Year
50,949,419
50,949,419
50,949,419
-
Fund Balances, End of Year
$ 50,949,418
$ 46,564,966
$ 50,682,467
$ 4,117,501
56 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Miscellaneous Special Revenue Fund
Year Ended June 30, 2023
REVENUES
Fines & Forfeitures
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
General Government
Building and Safty
Public Works
Public Safety
Fire Protection 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, Beginning of Year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 12,500
$ 12,500
$ 16,208
$ 3,708
78,000
78,000
70,625
(7,375)
2,148,094
2,883,646
2,592,240
(291,406)
10,100
10,100
(37,256)
(47,356)
58,777
58,777
28,611
(30,166)
2,307,471
3,043,023
2,670,428
(372,595)
220,822
220,822
98,686
122,136
142,700
142,700
6,523
136,177
34,275
906,657
724,066
182,591
2,500
27,070
32,875
(5,805)
-
6,671
-
6,671
64,934
99,206
34,272
64,934
465,231
1,403,126
896,422
506,704
1,842,240
1,639,897
1,774,006
134,109
-
196,343
31,967
(164,376)
(2,066,236)
(2,625,997)
(2,624,376)
1,621
(2,066,236) (2,429,654) (2,592,409) (162,755)
(223,996) (789,757) (818,403) (28,646)
658,416 658,416 658,416
Fund Balance, End of Year $ 434,420 $ (131,341) $ (159,987) $ (28,646) 57 City of Yucaipa
Notes to Required Supplementary Information
Year Ended June 30, 2023
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.
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).
SUPPLEMENTARY INFORMATION
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Development Impact Fees Capital Projects Fund Year Ended June 30, 2023
REVENUES
Charges For Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
Public Works
Fire Protection 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)
$ 4,323,000 $ 4,323,000 $ 3,404,103 $ (918,897)
1,010,000 1,010,000 1,503,423 493,423
- - 18,654 18,654
7,914,000 7,914,000 2,918,762 (4,995,238)
13,247,000 13,247,000 7,844,942 (5,402,058)
100,000 237,072 140,320 96,752
- 7,268 - 7,268
23,762,000 25,777,593 12,849,651 12,927,942
23,862,000 26,021,933 12,989,971 13,031,962
(10,615,000) (12,774,933) (5,145,029) 7,629,904
1,500,000 6,168,190 4,375,008 (1,793,182)
(974,576) (499,658) (470,323) 29,335
Total Other Financing Sources (Uses)
525,424
5,668,532
3,904,685 (1,763,847)
Net Change in Fund Balances
(10,089,576)
(7,106,401)
(1,240,344) 5,866,057
Fund Balances (Deficit), Beginning of Year
(22,743,645)
(22,743,645)
(22,743,645) -
Fund Balances (Deficit), End of Year
$(32,833,221)
$ (29,850,046)
$ (23,983,989) $ 5,866,057
59 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Facilities Construction Capital Projects Fund Year Ended June 30, 2023
REVENUES
Charges for Services
Investment Income
Total Revenues
EXPENDITURES
Current:
General Government
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ - $ - $ 20,000 $ 20,000
- 82,348 82,348
- 102,348 102,348
46,500 46,493 7
2,471,161 1,105,480 1,365,681
486,667 374,771 111,896
3,004,328 1,526,744 1,477,584
(3,004,328) (1,424,396) 1,579,932
Transfers In
-
3,352,488
3,103,288
(249,200)
Transfers Out
(1,554,757)
(1,743,683)
(22,170)
1,721,513
Total Other Financing Sources (Uses) (1,554,757)
1,608,805
3,081,118
1,472,313
Net Change in Fund Balances
(1,554,757)
(1,395,523)
1,656,722
3,052,245
Fund Balances, Beginning of Year
7,273,590
7,273,590
7,273,590
-
Fund Balances, End of Year
$ 5,718,833
$ 5,878,067
$ 8,930,312 $
3,052,245
NON -MAJOR GOVERNMENTAL FUNDS
City of Yucaipa
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2023
ASSETS
Cash and Investments
Receivables:
Accounts
Interest
Due From Other Governments
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
FUND BALANCES
Nonspendable
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
Special Revenue
Energy
Independence State
Gas Tax Measure I Program COPs Grant
$ - $ 1,001,670 $ - $ 762,725
351,525 977 -
1,029 - - 358,375 69,359 - -
- - 253,506 3,048 - - -
$ 362,452 $ 1,422,554 $ 254,483 $ 762,725
$ 66,682 $ - $ - $ 45,555
30,706 - - -
205,081 - 1,220 -
302,469 - 1,220 45,555
22,568 191,528 - -
3,048 - - -
34,367 1,231,026 253,263 717,170
37,415 1,231,026 253,263 717,170
$ 362,452 $ 1,422,554 $ 254,483 $ 762,725
61 Capital
Special Revenue Projects
Office of Miscellaneous
Traffic and Housing Capital
Safety LLMD Authority Paramedic PEG Video Projects
$ 128,224 $ 3,073,236 $ - $ 999,298 $ 915,296 $ 1,054,968 - - 3,020 - 20,911 20,299
1,814 - 6,651 - 406
31,864 - 9,626 - 417,019
- - 332 - - -
$ 128,224 $ 3,106,914 $ 3,352 $ 1,015,575 $ 936.207 $ 1,492,692 $ - $ 17,601 $ 187 $ 66,715 $ - $ 1,644
- - 723 - -
- - - 700
111,199 - - 871,280
17,601 111,386 67,438 - 873,624
- - - 437,317
- - 332 - - 128,224 3,089,313 - 948,137 936,207 -
- - (108,366) - - 181,751
128,224 3,089,313 (108, 034) 948,137 936,207 181,751
$ 128,224 $ 3,106, 914 $ 3,352 $ 1,015,575 $ 936,207 $ 1,492,692 Continued
62 City of Yucaipa
Combining Balance Sheet
Non -Major Governmental Funds (Continued)
June 30, 2023
ASSETS
Cash and Investments
Receivables:
Accounts
Interest
Due From Other Governments
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 - Land Sale
FUND BALANCES
Nonspendable
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
Capital Projects
Air Pool
CDBG Quality Capital Street
Capital Improvement Replacement Maintenance
$ 464,122 $ 25,057 $ 8,340 $ 3,474,705
462 1,838 - 100
164,031 50,057 - -
$ 628,615 $ 76,952 $ 8,340 $ 3,474,805
$ - $ 57,888 $ - $ 28,078
146,301 - - -
146,301 57,888
146,302 50,057
28,078
336,012 - 8,340 3,446,727
- (30,993) - -
336,012 (30,993) 8,340 3,446,727
$ 628,615 $ 76,952 $ 8.340 $ 3,474,805
63 Capital Projects
Total Nonmajor
TDA 1-10 Low Water Governmental
Article 3 Specific Plan Crossings Funds
$ 11,907,641
- 396,732
- - 1,352 13,652
140,230 - 325,762 1,566,323
- - - 253,506
- - - 3,380
$ 140,230 $ - $ 327,114 $ 14,141, 234
$ - $ 284,350
- 31,429
- 700
140,230 - - 1,475,311
- - 2,270,833 2,270,833
140,230 - 2,270,833 4,062,623
140,230 - 325,762 1,313,764
- - 3,380
11,128, 786
(140,230) - (2,269,481) (2,367,319)
(140,230) - (2,269,481) 8,764,847
$ 140,230 $ - $ 327,114 $ 14,141, 234
64 City of Yucaipa
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non -Major Governmental Funds
Year Ended June 30, 2023
REVENUES
Taxes:
Property Taxes
Franchise Taxes
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
General Government
Public Works
Public Safety
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
Special Revenue
Energy
Independence State
Gas Tax Measure I Program COPs Grant
30,711 - - -
2,612,652 2,477,752 - 88,095
6,505 (6,698) 22,290 (9,717)
2,649,868 2,471,054 22,290 78,378
1,065,437 - - -
- - - 167,877
69,227 - - -
46,649 - - -
1,181,313 - - 167,877
1,468,555 2,471,054 22,290 (89,499)
(1,750,139) (2,830,336) (315,025) -
(1,750,139) (2,830,336) (315,025) -
(281,584) (359,282) (292,735) (89,499)
318,999 1,590,308 545,998 806,669
$ 37,415 $ 1,231,026 $ 253,263 $ 717,170
65 Capital
Special Revenue Projects
Office of Miscellaneous
Traffic and Housing Capital
Safety LLMD Authority Paramedic PEG Video Projects
$ -
$ -
$ -
$ 1,087,351 $
- $
-
-
-
-
-
107,280
-
-
768,094
-
-
-
33,607
-
-
-
-
-
61,956
(1,696)
13,840
-
8,086
3,963
5,632
(1,696)
781,934
-
1,095,437
111,243
101,195
-
-
43,503
-
-
37,839
-
419,579
-
-
-
-
-
-
-
1,480,185
-
-
-
-
-
-
-
34,763
-
419,579
43,503
1,480,185
-
72,602
(1,696)
362,355
(43,503)
(384,748)
111,243
28,593
-
-
-
1,028,310
-
264,633
-
(91,823)
(4,413)
(49,110)
(85)
(110,880)
-
(91,823)
(4,413)
979,200
(85)
153,753
(1,696)
270,532
(47,916)
594,452
111,158
182,346
129,920
2,818,781
(60,118)
353,685
825,049
(595)
$ 128,224
$ 3,089,313
$ (108,034)
$ 948,137 $
936,207 $
181,751
Continued
City of Yucaipa
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non -Major Governmental Funds (Continued) Year Ended June 30, 2023
REVENUES
Taxes:
Property Taxes
Franchise Taxes
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
General Government
Public Works
Public Safety
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
CDBG Quality Capital Street
Capital Improvement Replacement Maintenance
- - - 291,710
658,391 381,465 - -
332 1,839 28 17,829
658,723 383,304 28 309,539
37,170
-
-
-
1,560
-
-
29,305
17,868
609,002
-
579,937
56,598
609,002
-
609,242
602,125
(225,698)
28 (299,703)
13,770
200,671
-
2,481,373
(146,301)
(4,664)
-
(128,974)
(132,531)
196,007
-
2,352,399
469,594
(29,691)
28 2,052,696
(133,582)
(1,302)
8,312
1,394,031
$ 336,012
$ (30,993) $
8,340
$ 3,446,727
67 Capital Projects
Total Nonmajor
TDA 1-10 Low Water Governmental
Article 3 Specific Plan Crossings Funds
$ - $ 1,087,351
- - - 107,280
1,124,122
145,737 6,426,048
- - 1,352 63,585
- - 147,089 8,808,386
- 118,512
- - - 1,515,881
- - - 1,648,062
- - - 69,227
- - 221,350 1,509,569
- - 221,350 4,861,251
(74,261) 3,947,135
190,241 4,178,998
(50,502) (20,134) - (5,502,386)
(50,502) (20,134) 190,241 (1,323,388)
(50,502) (20,134) 115,980 2,623,747
(89,728) 20,134 (2,385,461) 6,141,100
$ (140,230) $ - $ (2,269,481) $ 8,764,847
M.
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2023
REVENUES
Charges for Services
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Current:
Public Works
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers Out
Total Other Financing Sources (Uses)
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)
$ 10,000
$ 30,711
$ 20,711
2,894,086
2,612,652
(281,434)
1,800
6,505
4,705
2,905,886
2,649,868
(256,018)
1,153, 897
1,065,437 88,460
80,910
69,227 11,683
46,649
46,649 -
1,281,456
1,181,313 100,143
1,624,430 1,468,555 (155,875)
(1,832,139)
(1,750,139)
82,000
(1,832,139)
(1,750,139)
82,000
(207,709)
(281,584)
(73,875)
318,999 318,999 -
$ 111,290 $ 37,415 $ (73,875)
M
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure 1 Special Revenue Fund
Year Ended June 30, 2023
REVENUES
Intergovernmental
Investment Income
Total Revenues
OTHER FINANCING SOURCES (USES)
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ 1,657,860 $ 2,477,752 $ 819,892
10,000 (6,698) (16,698)
1,667,860 2,471,054 803,194
(3,704,709) (2,830,336) 874,373
(3,704,709) (2,830,336) 874,373
(2,036,849) (359,282) 1,677,567
1,590,308 1,590,308 -
$ (446,541) $ 1,231,026 $ 1,677,567
70 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, 2023
REVENUES
Investment Income
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)
$ 20,672
$ 22,290
$ 1,618
20,672
22,290
1,618
(315,048)
(315.025)
23 (294,376)
(292,735)
1,641
545,998
545,998
-
$ 251,622 $ 253,263 $ 1,641
71 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - State COPs Grant Special Revenue Fund Year Ended June 30, 2023
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
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ 175,000 $ 88,095 $ (86,905)
2,500 (9,717) (12,217)
177,500 78,378 (99,122)
175,000 167,877 7,123
2,500 (89,499) (91,999)
806,669 806,669 -
$ 809,169 $ 717,170 $ (91, 999)
72 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 June 30, 2023
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)
$ - $ (1,696) $ (1,696)
(1,696) (1,696)
129,920 129,920
$ 129,920 $ 128,224 $ (1,696)
73 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - LLMD Special Revenue Fund
Year Ended June 30, 2023
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
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 805,464 $ 768,094 $ (37,370)
- 13,840 13,840
805,464 781,934 (23,530)
714,141 419,579 294,562
91,323 362,355 271,032
(91,823)
(91,823) -
(500)
270,532 271,032
2,818,781
2,818,781 -
$ 2,818,281
$ 3,089,313 $ 271,032
74 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Housing Authority Special Revenue Fund Year Ended June 30, 2023
EXPENDITURES
Current:
Community Development
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers Out
Total Other Financing Sources (Uses)
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)
$ 52,616 $ 43,503 $ 9,113
52,616 43,503 9,113
(52,616) (43,503) 9,113
(4,413) (4,413) -
(4,413) (4,413) -
(57,029) (47,916) 9,113
(60,118) (60,118) -
$ (117,147) $ (108,034) $ 9,113
75 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Paramedic Special Revenue Fund
Year Ended June 30, 2023
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 $ 1,087,351 $ (17,149)
500 8,086 7,586
1,105,000 1,095,437 (9,563)
2,096,295 - 2,096,295
(991,295) 1,095,437 2,086,732
1,028,310 1,028,310 -
(49,110) (49,110) -
979,200 979,200 -
(12,095) 2,074,637 2,086,732
353,685 353,685 -
$ 341,590 $ 2,428,322 $ 2,086,732
76 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - PEG Video Special Revenue Fund
Year Ended June 30, 2023
REVENUES
Franchise 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
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ 93,000 $ 107,280 $ 14,280
2,500 3,963 1,463
95,500 111,243 15,743
(85) (85) -
95,500 111,158 15,743
825,049 825,049 -
$ 920,549 $ 936,207 $ 15,658
77 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Miscellaneous Capital Projects Fund Year Ended June 30, 2023
REVENUES
Intergovernmental
Investment Income
Charges for Services
Other
Total Revenues
EXPENDITURES
Current:
General Government
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 Balances
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 25,800 $ 61,956 $ 36,156
800 5,632 4,832
36,178 33,607 (2,571)
89,000 - (89,000)
151,778 101,195 (50, 583)
81,449
37,839
43,610
418,000
34,763
383,237
499,449
72,602
426,847
(347,671) 28,593 376,264
264,633
264,633 -
(786)
(110,880) (110,094)
263,847
153,753 (110,094)
(83,824)
182,346 266,170
(595) (595) -
$ (348,266) $ 181,751 $ 266,170
78 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CDBG Capital Projects Fund
Year Ended June 30, 2023
REVENUES
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Current:
General Government
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), End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 688,286 $ 658,391 $ (29,895)
- 332 332
688,286 658,723 (29,563)
52,639
37,170 15,469
1,560
1,560 -
213, 000
17,868 195,132
267,199
56,598 210,601
421,087 602,125 181,038
67,439
13,770
(53,669)
(149,970)
(146,301)
3,669
(82,531)
(132,531)
(50,000)
338,556
469,594
131,038
(133,582) (133,582) -
$ 204,974 $ 336,012 $ 131,038
79 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, 2023
REVENUES
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Capital Outlay
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
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ 1,939,000 $ 381,465 $ (1,557,535)
- 1,839 1,839
1,939,000 383,304 (1,555,696)
1,342,000 609,002 732,998
597,000 (225,698) (822,698)
377,671
200,671 (177,000)
(4,664)
(4,664) -
373,007
196,007 (177,000)
970,007
(29,691) (999,698)
(1,302) (1,302) -
$ 968,705 $ (30,993) $ (999,698)
M
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, 2023
REVENUES
Investment Income
Total Revenues
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)
$ - $ 28 $ 28
28 28
- 28 28
8,312 8,312 -
$ 8,312 $ 8,340 $ 28
81 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Street Maintenance Capital Projects Fund Year Ended June 30, 2023
REVENUES
Charges for Services
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), End of Year
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ - $ 291,710 $ 291,710
- 17,829 17,829
- 309,539 309,539
61,740
29,305
32,435
3,705,168
579,937
3,125,231
3,766,908
609,242
3,157,666
(3,766,908) (299,703) 3,467,205
3,186,800
2,481,373
(705,427)
(130,307)
(128,974)
1,333
3,056,493
2,352,399
(704,094)
(710,415)
2,052,696
2,763,111
1,394,031 1,394,031 -
$ 683,616 $ 3,446,727 $ 2,763,111
82 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, 2023
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)
$ (50,502) $ (50,502) $ -
(50,502) (50,502)
(89,728) (89,728)
$ (140,230) $ (140,230) $ -
83 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, 2023
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)
(20,134) (20,134)
(20,134) (20,134)
20,134 20,134
$ 20,134 $ - $ (20,134)
84 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Low Water Crossings Capital Projects Fund Year Ended June 30, 2023
REVENUES
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Capital Outlay
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
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 4,428,000 $ 145,737 $ (4,282,263)
- 1,352 1,352
4,428,000 147,089 (4,280,911)
5,330,000 221,350 5,108,650
(902,000) (74,261) 827,739
190,241 190,241 -
(3,826) - 3,826
186,415 190,241 3,826
(715,585) 115,980 831,565
(2,385,461) (2,385,461) -
(3,101,046) $ (2,269,481) $ 831,565
85 CUSTODIAL FUNDS
City of Yucaipa
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
Police CFD 98-1
Department Cramer Debt
ASSETS
Cash and Investments $ 54,863 $ 52,922 $ 2,606,770 $ 2,714,555 Cash and Investments with Fiscal Agents - - 2,442,327 2,442,327 Accounts Receivable - - 14,616 14,616
Interest Receivable - - 51 51
Total Assets
LIABILITIES
54,863 52,922 5,063,764 5,171,549
Accounts Payable - - 2,244 2,244
Total Liabilities - - 2,244 2,244
NET POSITION
Restricted for Organizations and Individuals $ 54,863 $ 52,922 $ 5,061,520 $ 5,169,305 :^
City of Yucaipa
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
June 30, 2023
Police
CFD 98-1
Department
Cramer
Debt
Donation
House
Reserves
Totals
ADDITIONS
Taxes and Assessments Collected for Others
$ -
$ -
$ 2,285,788
$ 2,285,788
Investment Income
186
179
43,139
43,504
Total Additions
186
179
2,328,927
2,329,292
DEDUCTIONS
General and Administrative
- - 94,497
94,497
Payments to Bondholders
- - 2,183,316
2,183,316
Total Deductions
- - 2,277,813
2,277,813
Net Change in Fiduciary Net Position
186 179 51,114
51,479
Net Position, Beginning of Year
54,677 52,743 5,010,406
5,117,826
Net Position, End of Year
$ 54,863 $ 52,922 $ 5,061,520
$ 5,169,305
87 STATISTICAL SECTION
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 89
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 97
These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.
Debt Capacity 103
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 109
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 111
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.
::
Net Position:
Investment in Capital Assets
Restricted for:
Low and Moderate Housing
Public Safety
Public Works/Transportation
Community Development
Community Service / Public Education
Capital Projects
Other Purpose
Unrestricted
Total Net Position
CITY OF YUCAIPA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2023 2022 2021 2020 2019
$ 191,562,417
$ 192,150,325
$ 187,300,451
$ 193,575,047
$ 187,442,518
-
-
437
21,998
1,793,531
1,290,274
842,456
689,126
773,906
4,712,120
3,403,692
172,578
134,574
1,345,343
1,101,382
1,297,916
8,399
8,364
4,306
4,025,520
3,643,830
3,433,073
3,100,353
2,914,000
-
8,227,206
8,798,378
115,836
2,451,698
-
-
-
1,245,728
1,288,717
30,283,832
24,234,997
25,981,533
25,066,595
23,879,234
$ 233,478,802
$ 234,248,240
$ 226,536,868
$ 223,936,060
$ 220,121,720
0 Fiscal Year
2018 2017 2016 2015 2014
$ 173,234,642
$ 161,130,470
$ 155,769,811
$ 150,107,657
$ 151,188,060
50,095
93,740
-
-
-
1,147,116
1,437,359
1,709,562
1,731,433
1,648,506
1,795,685
3,136,626
3,001,667
9,715,836
9,602,617
306
13,106
14,494
12,815
12,815
2,679,478
2,497,976
2,550,577
2,308,616
2,196,701
2,598,651
3,59M68
4,680,900
347,493
323,462
1,277,363
1,510,011
1,489,306
1,472,937
1,407,186
33,974,660
34,487,009
38,545,036
38,714,479
42,269,769
$ 216,757,996
$ 207,896,965
$ 207,761,353
$ 204,411,266
$ 208,649,116
all
CITY OF YUCAIPA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
Expenses:
2023
2022
2021
2020
2019
Governmental activities:
General Government
$ 7,564,205
$ 4,943,392
$ 5,523,173
$ 4,640,613
$ 4,052,236
Community Development
1,544,928
2,724,779
2,662,672
2,267,651
2,374,236
Building and Safety
1,711,222
1,163,594
814,756
609,026
478,236
Public Works
17,408,927
12,003,117
13,913,740
10,128,308
8,542,114
Public Safety
19,525,389
18,010,685
16,728,825
16,758,782
15,425,996
Community Services
4,629,458
3,520,861
1,946,775
2,720,132
2,474,834
Total Governmental Activities
52,384,129
42,366,428
41,389,941
37,124,512
33,347,652
Program Revenues:
Governmental activities:
Charges for Services
16,329,217
7,477,356
4,557,440
4,492,201
4,452,055
Operating Grants and Contributions
4,710,866
5,938,900
3,568,495
2,203,890
1,698,865
Capital Grants and Contributions
4,498,377
9,340,764
9,636,799
9,938,960
6,044,151
Total governmental activities program revenues
25,538,460
22,757,020
17,762,734
16,635,051
12,195,071
Net (Expense) Revenue and Change in Net Position
(26,845,669)
(19,609,408)
(23,627,207)
(20,489,461)
(21,152,581)
General Revenues:
Taxes:
Property Taxes
14,702,749
13,802,354
13,283,544
12,598,276
12,136,328
Sales and Use Taxes
5,488,377
5,299,433
4,600,872
3,751,928
4,178,316
Franchise Taxes
1,830,862
1,672,542
1,567,185
1,491,027
1,422,487
Documentary Transfer Tax
238,018
318,285
311,936
186,819
165,803
Other Taxes
30,037
23,658
22,299
22,379
22,903
Vehicle License Fees, Unrestricted
6,425,960
5,931,673
5,689,226
5,448,407
5,183,224
Investment Income
11,955
(187,606)
43,503
412,106
646,973
Miscellaneous
204,910
460,441
5,674,866
392,959
760,271
Total General Revenue
28,932,868
27,320,780
31,193,431
24,303,801
24,516,305
Change in Net Position
2,087,199
7,711,372
7,566224
3,814,340
3,363,724
Net Position- Beginning ofthe Year
231,391,603
226.536,868
218,970,644
220,121,720
216,757,996
Net Position- End ofthe Year
$ 233,478,802
$ 234,248,240
$ 226,536,868
$ 223,936,060
S 220,121,720
91 Fiscal Year
2018
2017
2016
2015
2014
$ 4,093,998 $
3,810,457
$ 3,217,017
$ 3,059,021 $
2,786,070
2,256,053
2278822
5564038
5170508
6178671 _
387,227
443,510
535,135
470,200
298,010
8,011,508
5,836,411
6,628,742
6,745,133
12,320,777
14,453,214
13,564,138
12,526,134
12,038,940
10,913,479
2,012,974
2,549,809
1,893,305
2,106,093
1,633,333
31,214,974
28,483,147
30,364,371
29,589,895
34,130,340
3,598,357
3,695,175
3,601,914
3,146,047
2,525,564
1,730,819
1,590,665
1,712,301
1,743,410
1,056,654
13,559,464
1,648.680
7,479,465
3,671,538
4,372,675
18,888,640
6,934,520
12,793,680
8,560,995
7,954,893
(12,326.334)
(21,548,627)
(17,570,691)
(21,028,900)
(26,175,447)
11,616.465
11,072.145
10.411,588
10,034,783
9,689,395
3,491,965
3,446,413
3,528,777
3,178,195
2,857,302
1,381,727
1,339,715
1,415,951
1,427,826
1,412,159
196,525
187,977
165,430
173,871
122,362
22,529
22,666
22,941
18,253
17,656
4,961,077
4,706,421
4,459,501
4,267,755
3,963,654
64,534
183,557
463,238
482,999
315,102
391,399
725,345
453,352
558,284
2,844,271
22,126,221
21,694,239
20,920,778
20,141,966
21.221,901
9,799,897
135,612
3,350.087
(886,934)
(4,953,546)
206,958,109
207,761,353
204,411,266
205,298,200
213,602,662
$ 216,757,996
S 207,896,965
S 207,761,353 S
204,411,266
S 208,649,116
92 CITY OF YUCAIPA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2023
2022
2021
2020
2019
General Fund:
Nonspendable
$ 21,029,653
$ 22,929,682
$ 24,846,293
$ 26,910,385
$ 22,370,194
Restricted
-
-
-
-
125,052
Committed
14,660,463
17,237,963
15,853,604
18,324,766
17,908,560
Assigned
-
-
2,387,911
3,187,945
4,591,778
Unassigned
14,992,351
10,781,774
9,284,068
6,530,400
4,621,841
Total general fund
50,682,467
50,949,419
52,371,876
54,953,496
49,617,425
All other governmental funds
Nonspendable
3,380
34,488
-
-
-
Restricted
11,128,786
9,467,285
9,225,434
5,684,636
10,027,656
Committed
-
I -
-
-
-
Assigned
8,930,312
7,273,590
5,449,265
-
-
Unassigned
(26,518,351)
(25,445,902)
(25,817,650)
(32,714,452)
(26,585,290)
Total all other governmental fund!
(6,455,873)
(8,670,539)
(11,142,951)
(27,029,816)
(16,557,634)
Total Fund Balances
$ 44,226,594
$ 42,278,880
$ 41,228,925
$ 27,923,680
$ 33,059,791
Beginning in FY 2018/19, the General Fund and the Fire Special Revenue Fund were combined. 93 Fiscal Year
2018 2017 2016 2015 2014
$ 20,416,604
$ 20,648,580
$ 13,946,845
$ 11,313,445
$ 11,537,445
192,397
310,760
1,073,460
985,913
1,710,864
7,463,406
7,035,269
6,761,166
5,342,829
5,182,303
4,019,175
3,225,598
12,009,103
10,933,751
9,536,944
5,567,230
5,080,248
11,528,265
15,033,672
14,689,176
37,658,812
36,300,455
45,318,839
43,609,610
42,656,731
-
-
2,923,167
2,523,014
2,531,014
10,547,436
12,901,073
13,272,331
15,532,774
15,039,236
11,820,420
11,811,080
8,878,997
8,870,725
8,458,732
5,777,260
12,301,900
-
36,079
327,168
(27,535,988)
(21280,361)
(15,873,763)
(13,324,985)
(12,172,510)
609,128
13,733,692
9,200,732
13,637,607
14,183,640
$ 38,267,940
$ 50,034,147
$ 54,519,571
$ 57,247,217
$ 56,840,371
94 Revenues:
Taxes:
Property Taxes
Sales and Use Taxes
Franchise Taxes
Documentary Transfer Tax
Other Taxes
License and Permits
Fines and Forfeitures
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenue
Expenditures:
Current:
General Government
Community Development
Building and Safety
Public Works
Public Safety
Community Service
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over (under) Expenditures
Other Financing Sources (Uses)
Transfer In
Transfer Out
Total Other Financing Sources
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of the Year
CITY OF YUCAIPA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2023 2022 2021 2020 2019
$ 14,702,749
$ 13,802,354
$ 13,283,544
$ 12,598,276
$ 12,136,328
5,488,377
5,299,433
4,600,872
3,751,828
4,178,316
1,830,861
1,672,542
1,567,185
1,491,027
1,422,487
238,018
318,285
311,936
186,819
165,803
30,037
23,658
22,299
22,379
22,903
2,117,419
1,375,320
987,628
736,865
642,926
50,653
326,104
381,295
40,581
44,876
10,961,115
8,991,482
4,490,771
3,386,200
4,053,783
17,116,881
17,905,890
19,719,637
13,565,747
17,457,588
341,513
(410,975)
365,311
1,056,327
1,418,791
3,075,383
464,790
5,682,031
425,493
819,162
55,953,006
49,768,883
51,412,509
37,261,542
42,362,963
5,991,502
5,190,044
4,320,276
3,453,098
3,710,893
871,119
1,388,086
1,192,242
797,221
914,835
1,711,222
1,163,594
814,756
609,026
478,236
6,865,091
5,207,567
4,499.705
4,880,501
4,288,078
18,702,370
17,143,688
15,876,283
15,972,579
14,673,159
4,409,368
3,302,618
1,626,246
2,499,404
2,288,639
14,824,775
14,376,331
9,933,302
14,185,824
21,217,272
53,375,447
47,771,928
38,262,810
42,397,653
47,571,112
2.577.559
1,996,955
13,149,699
(5,136,111)
(5,208,149)
14,895,832
15,137,307
10,663,705
19,552,583
18,916,990
(15,525,677)
(16,084,307)
(10,873,705)
(19,552,583)
(18,916,990)
(629,845)
(947,000)
(210,000)
-
1,947,714
1,049,955
12,939,699
(5,136,111)
(5,208,149)
42,278,880
41,228,925
27,923,680
43,208,549
48,416,698
$ 44,226,594
$ 42,278,880
$ 41,228,925
$ 38,072,438
$ 43,208,549
95 Fiscal Year
2018 2017 2016 2015 2014
$ 11,616,465
$ 117072,145
$ 10,411,588
$ 10,034,783
$ 91689,395
3,491,965
3,446,413
3,528,777
3,178,195
2,857,302
1,381,727
1,339,715
1,415,951
1,427,826
17412,159
196,525
187.977
165,430
173,871
122,362
22,529
22,666
22,941
18,253
17,656
563,075
669,889
741,816
644,438
439,867
42,799
34,708
46,210
65,641
87,443
37337,724
3,217,725
4,142,074
3,523,712
1,558,693
9,570,510
8,048,047
11,192,564
8,422,778
9,523,229
478,954
472,118
899,261
7131548
315,102
391,399
563,339
643,662
692,134
1,456.782
317093,672
29,074,742
33,210,274
28,895,179
27,479,990
3,405,544
3,082,881
2,761,798
2,574,342
2,560,664
796,652
819,421
874,127
662,301
680,532
387,227
443,510
535,135
470,200
298,010
3,984,399
3,632,801
3,960,098
4,217,659
3,672,607
13,711,372
12,914,669
11, 947,953
11.476, 079
10,619,3 47
1,830,426
2,364,323
1,707,102
1,908,332
1,396,430
18,848,545
10,191,847
14,053,736
6.964,420
13,423,621
42,964,165
33,449,452
35,839,949
28,273,333
32,651,211
(11,870,493)
(4,374,710)
(2,629,675)
621,846
(5,171,221)
7,225,957
26,029,696
4,502,284
2,392,627
5,849,550
(7,121,671)
(26,140,410)
(4,600,255)
(2,607,627)
(4,023,323)
104,286
(110,714)
(97,971)
(215,000)
1,826,227
(11,766,207)
(4,485.424)
(2,727,646)
406,846
(3,344,994)
60,182,905
64,668,329
67,395,975
66,989,129
70,334,123
$ 48,416,698
$ 60,182,905
$ 64,668,329
$ 67,395,975
$ 66,989,129
4.^
CITY OF YUCAIPA
Assessed Value and Estimated Actual Value of Taxable Property by Major Type Last Ten Fiscal Years
Category
2023
2022
2021
2020
2019
Residental
$4,800,460,936
$4,477,721,348
$4,290,661,031
$4,121,577.454
$3,922,178,028
Commercial
420,932,556
392,826,501
384,136,677
359,691,461
343,889,586
Industrial
26,116,447
22,737,494
21,352,036
19,323,164
22,859,396
Irrigated
264,661
259,472
256,811
251,775
143.693
Dry Farm
2,480,965
2,432,318
3,068,142
3,363,591
3,429,995
Recreational
5,447,436
5,3427452
5,660,995
5,247,653
5,188,913
Institutional
5,581,027
10,279,542
16,166,803
12,156,160
8,179,074
Miscellaneous
15,875,804
15,862,094
16,814,925
17,107,033
10,852,354
Vacant Land
148,076,761
134,905,956
120,960,512
111,676,789
108,457,958
Unsecured
98,793,467
81,693,302
74,728,619
74,568,629
69,812,138
Total
$5.524,030,060
$5,144,060,479
$4,933,806,551
$4,724,963,709
$4,494,991,135
Total direct rate
Source:
HdL
0.23987 0.23994
0.22914 0.22917 0.22919
MON
2018
2017
2016
2015
2014
$3,753,391419
$3,545.207,827
$3,358,340,145
$3,197,499.722
$2,941,326,218
318,283,068
307,441,314
282,344,120
279,379,006
278,331,820
20,540,942
19,499,887
283947,572
27,816,631
25,761,469
140,876
138,112
136,038
133,374
132,771
3,372,477
3,433,192
3,395,439
3,328,926
3,313,882
5,1277653
5,06%825
5,415,474
4,107,321
5,052,198
9,902,113
10,120,689
3,759,117
6,693,945
4,629,021
11,567,874
10,872,131
10,959,685
117413,452
11,156,895
113,299,055
112,236,082
109,221,283
105, 449, 947
103,0687595
66,612,865
67,513,752
64,879,744
65,290,823
64,584,003
$4,302,239,342
$4,081,532,811
$3,867,398,617
$3,701,113,147
$3,437,356,872
0.22923
0.22921
0.22914
0.22912
0.22915
ul
CITY OF YUCAIPA
Direct & Overlapping Property Tax Rates
(Rate Per $100 of Taxable Value)
Agency
2023
2022
2021
2020
2019
Basic Levy
1.00000
1.00000
1.00000
1,00000
1,00000
Redlands Unified School Bond 1993
0.02790
0.06620
0.03600
0.03390
0.03240
San Bernardino Community College Bond
0.04500
0.05340
0.06510
0.05620
0.04070
San Bernardino Valley Muni Water
0.13000
0.13000
0.14250
0.14250
0.15250
Total Direct & Overlapping Tax Rates
1.20290
1.24960
1.24360
1.23260
1.22560
City's Share of 1% Levy Per Prop 13
0.22228
0.22228
0.22228
0.22228
0.22228
General Obligation Debt Rate
0 0
0 0
0 Total Direct Rate
0.23987
0.23994
0.22914
0.22917
0.22919
Source:
HdL
2018
2017
2016
2015
2014
1.00000
1,00000
1.00000
1.00000
1.00000
0.04940
0.05240
0.05670
0.05940
0.06290
0.03760
0.03500
0.04030
0.03930
0,04190
0.15250
0.16250
0.16250
0.16250
0.16250
1.23950
1.24990
1.25950
1.26120
1.26730
0.22228
0.22228
0.22228
0.22228
0.22228
0 0
0 0
0 0.22923
0.22921
0.22914
0.22912
0.22915
100
CITY OF YUCAIPA
Principal Property Tax Payers
Current Year and Nine Years Ago
2023
2014
Combined (Secured & Unsecured)
Combined (Secured & Unsecured)
Total Assessed
Percent of Net
Total Assessed
Percent of Net
Taxpayer
Value
Rank
Assessed Value
Value
Rank
Assessed Value
YVCC II LLC
$ 31,027,834
1 0.56%
$ 21,923,582
1 0.64%
SORENSON ENGINEERING INC
25,960,976
2 0.47%
8,646,546
8 0.25%
SUN LAKEVIEW MOBILE ESTATES LLC
24,225,000
3 0.44%
SNR 24 GOLDEN OAKS OWNER LLC
19,560,095
4 0.35%
2017 1 IH BORROWER
16,038,945
5 0.29%
CHAPMAN HEIGHTS YUCAIPA
15,459,516
6 0.28%
13,322,538
4 0.39%
YUCAIPA VENTURE LLC
15,458,508
7 0.28%
WOODSIDE 05S
14,729,855
8 0.27%
YUCAIPA AVENUE E LLC
13,758,092
9 0.25%
CSL WILDWOOD PROPERTY LLC
13,608,983
10 0.25%
YUCAIPA RETIREMENT RESIDENCE LP
14,656,306
2 0.43%
STATER BROS MARKETS
13,486,445
3 0.39%
GERALD S RUBIN
11,319,202
5 0.33%
CALANDA REAL LP
11,245,892
6 0.33%
PUTNAM FAMILY PARTNERSHIP
10,587,090
7 0.31%
YUCAIPA VALLEY ACRES
8,526,760
9 0.25%
VEDRES FAMILY INVESTMENT PTSHP
8,327,337
10 0.24%
TOP TEN TOTAL
189,827,804
3.44%
122,041,698
3.55%
CITY TOTAL
$ 5,524,030,060
$ 3,437,356,872
Source.
I-ldL
101
CITY OF YUCAIPA
Property Tax Levies and Collections
Last Ten 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
2023
$12,756,816
$12,695,990
99.52%
$326,581
$13,022,571
102.08%
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
10235%
2017
9,600,087
9,431,090
9824%
353,833
9,784,922
101.93%
2016
9,072,734
8,847,926
97.52%
355,412
9,203,338
101.44%
2015
8,636,028
8,460,894
97.97%
360,019
8,820,913
102.14%
2014
8,112,664
7,905,747
97.45%
378,362
8,284,109
102.11%
NOTE:
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 Berardino. 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
102
CITY OF YUCAIPA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Former RDA Tax
Allocation Bonds
Fiscal Year Ended
Principal
Percentage of
June 30
Outstanding
Personal Income Debt Per Capita
2023
$ -
0.00% $ -
2022
-
0.00% -
2021
-
0.00% -
2020
-
0.00% -
2019
-
0.00% -
2018
-
0.00% -
2017
-
0.00% -
2016
-
0.00% -
2014
-
0.00% -
2013
-
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.
103
CITY OF YUCAIPA
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year Ended Former RDA Tax
June 30 Allocation Bonds
2023 $ -
2022 -
2021 -
2020 -
2019 -
2018 -
2017 -
2016 -
2015 -
2014 -
Percentage of Assessed
Value 1
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Per Capita 1
Assessed Value has been used because the actual value of taxable property is not readily available in the State of California.
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.
104
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF YUCAIPA
Direct and Overlapping Debt
June 30, 2023
2022-2023 Assessed Valuation: $ 5,524,030,060
OVERLAPPING TAX 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 DEBT
OVERLAPPING GENERAL FUND DEBT:
San Bernardino County General Fund Obligations
San Bernardino County Pension Obligation Bonds
San Bernardino County Flood Control District General Fund Obligations Yucaipa-Calimesa Joint Unified School District General Fund Obligations
TOTAL OVERLAPPING GENERAL FUND DEBT
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
DIRECT TAX AND ASSESSMENT DEBT:
City of Yucaipa
TOTAL DIRECT DEBT
COMBINED TOTAL DEBT'
Notes:
Percentage
Outstanding Debt
Estimated Share of
Applicable
06/30/23
Overlapping Debt
5.976%
$ 708,007,978
$ 42,310,557
0.066%
54,383,512
35,893
100.000%
$ -
$ -
t00.000%
14,185,000
14,185,000
100.000%
875,000
875,000
100.000%
1,879,453
1,879,453
100.000%
7,718,000
7,718,000
$ 787,048,943 $ 67,003,903
1.901% $
160,860,000 $
3,057,949
1.901%
62,960,000
1,196,870
1.901%
41,065,000
780,646
82.540°%
5,497,409
4,537,561
270,382,409 9,573,026
100.000% 6,335,000 6,335,000
100.000% $ $
a oz,711,7L7
t The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. 2 Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non -bonded capital lease obligations.
Ratios to 2022-23 Assessed Valuation:
DirectDebt............................................................... 0.00% Total Direct and Overlapping Tax and Assessment Debt....., .... 1.21% Combined Total Debt .................................................... 1.50% Ratios to Redevelopment Successor Agency Incremental Valuation ($335.178.639)7 Total Overlapping Tax Increment Debt........ _............... - ..... 1.89% 105
CITY OF YUCAIPA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2023 2022 2021 2020 2019
Assessed Valuation $
5,524,030,060
$ 5,144,060,479
$ 4,933,806,551
$ 4,724,963,709
$ 4,494,991,135
Conversion percentage
25%
25%
25%
25%
25%
Adjusted assessed valuation
1,381,007,515
1,286,015,120
1,233,451,638
1,181,240,927
1,123,747,784
Debt limit percentage
15%
15%
15%
15%
15%
Debt limit
207,151,127
192,902,268
185,017,746
177,186,139
168, 562,168
Total net debt applicable to the limit
General obligation bonds
-
-
-
-
-
Legal debt margin
207,151,127
192,902,268
185,017,746
177,186,139
168,562,168
Total debt applicable to the limit
as a percentage of debt limit
0.00%
0.00%
0.00%
0.00%
0.00%
NOTE:
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision wt 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 mo:
ownership for that parcel.) The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current 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 governmen state.
Sources:
San Bernardino County Tax Assessor
106
Fiscal Year
2018
2017
2016
2015
2014
$ 4,302,239,342
4,081,532,811
3,867,398,617
3,701,113,147
3,437,356,872
25%
25%
25%
25%
25%
1,075,559,836
1,020,383,203
966,849,654
925,278,287
859,339,218
15%
15%
15%
15%
15%
161,333,975
153,057,480
145,027,448
138,791,743
128,900,883
161,333,975
153,057,480
145,027,448
138,791,743
128,900,883
0.00%
ien assessed valuatio
3t recent change u
full valuatioi
Lt located within th
0.00% 0.00% 0.00% 0.00%u
107
Fiscal Year
Ended
June 30
CITY OF YUCAIPA
Pledged Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Former RDA Tax Debt Service
Increment Principal Interest Coverage
2023
$ - $ 215,000 $
337,599 $ -
2022
- 205,000
346,941 -
2021
- 195,000
355,602 -
2020
- 190,000
363,828 -
2019
- 180,000
371,675 -
2018
- 175,000
379,137 -
2017
- 165,000
386,243 -
2016
- 160,000
394,394 -
2015
- 155,000
400,775 -
2014
- 150,000
405,032 -
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.
108
Calendar Year
2021
2020
2019
2018
2017
2016
2015
2014
2013
CITY OF YUCAIPA
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Income
Population
(In Thousands)
53,991
$ 1,783,022
54,494
1,722,373
55,634
1,620,848
55,712
1,542,724
54,844
1,407,956
54,651
1,338,730
54,324
1,347,721
53,779
1,367,950
52,598
1,353,662
52,654
1,365,950
Per Capita
Personal Income
$ 33,024
31,606
29,134
27,691
25,672
24,495
24,808
25,436
25,736
25,942
Unemployment
Rate
3.40%
5.70%
7.90%
3.20%
3.40%
4.00%
5.80%
6.60%
8.20%
6.60%
Sources:
State Department of Finance, HdL, State of California Employment Development Department 109
CITY OF YUCAIPA
Principal Employers
Current Year and Nine Years Ago
2023* 2014*
Number of
Percent of Total
Number of
Percent of Total
Employer Employees
Employment
Employees
Employment
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. 110
Full-time employees:
City Council Depatment
City Manager Department
Community Services Department
Development Services Department:
Director
Administration
Engineering
Street Maintenance
Parks/Facilities Maintenance
Planning
Code Enforcement
Economic Development
Finance Department
Fire Services Department
General Services Department
Successor Agency to RDA
Yucaipa Housing Authority
Total
Sources:
City of Yucaipa
CITY OF YUCAIPA
City Employees
by Function
Last Five Fiscal Years
Employees as of June 30
2023 2022 2021 2020 2019
0.25 0.00
0.00 0.00
0.00 3.15
5.05 3.55
4.00 3.00
18.00 13.60
10.60 10.10
10.20 1.00
1.00 1.00
1.00 0.40
3.00 2.00
2.00 2.31
1.00 5.50
5.50 5.50
4.50 6.00
6.75 5.25
5.25 5.25
4.50 9.25
9.75 8.75
8.75 8.00
5.25 4.25
3.25 3.50
2.50 5.25
3.25 4.25
3.00 4.16
0.90 0.00
0.00 0.00
0.00 14.33
8.78 8.00
7.00 6.75
1.00 0.00
0.00 0.00
0.25 7.80
6.85 6.38
4.40 4.00
0.38 0.52
0.27 0.14
0.48 0.20
0.20 0.20
0.06 0.16
82.00 66.00
59.00 54.00
53.00 111
CITY OF YUCAIPA
Operating Indicators
by Function
Last Five Fiscal Years
Fiscal Year
Function
2023
2022
2021
2020
2019
Police:
Calls for service
43,078
42,995
42,814
43,808
44,488
Citations issued
2,993
4,236
1,305
1,252
1,727
Fire:
Number of Incidents
8,229
8,500
8,263
7,636
8,297
Building and Safety:
Building Permits Issued
2,772
2,210
1,885
1,376
1,448
No. of New Dwelling Units
328
233
119
17 21
Parks and recreation:
Community center attendance
10,812
14,139
7,112
16,897
27,712
STARS
997
1,093
1,649
12,269
16,288
Camps
730
683
433
940
1,388
Aquatics
4,402
3,570
2,440
1,275
6,950
Community Center Classes
1,944
1,061
715
4,218
5,880
Scherer Center Classes
5,612
5,384
1,153
3,742
5,130
Administration
New Business Licenses
587
570
428
422
469
Renewed Business Licenses
1,697
1,452
1,564
1,547
1,549
Sources:
City of Yucaipa
112
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
2023 2022 2021 2020
2019
3 3
3 3
3 229.05
227.82
227.82
227.82
227.82
32.5 32.5
32.5 31.5
27.5 4
4 4
4 2
534
534
534
534
534
2 2
2 2
2 1
1 1
1 1
113
ATTACHMENT 2
Van Lant&
VLFankhanel,LLP
—i Ccrlified Public RlccounLinfs 1
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 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, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 21, 2023.
Report on 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 internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
I
Van Lant & Fankhanel, LLP
29970 Technology Drive. Suite 105 A
Murrieta. CA 92563
909.856.6879
Report on 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.
December 21, 2023
ON
ATTACHMENT 3
VLVan Lant&
IFankhanelLLP
Ccrlifwd Public Accuunlarits '—
December 21, 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, 2023.
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 April 26, 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. 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 (CaIPERS) 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.
I
Van Lant & Fankhanel, LLP
29970 Technology Drive. Suite 105 A
Iblurrieta, CA 92563
909.856.6879
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 OPEB 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 December 21, 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.
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 on 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,
ATTACHMENT 4
CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Financial Statements
Fiscal Year Ended June 30, 2023
CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Fiscal Year Ended June 30, 2023
TABLE OF CONTENTS
Page
Independent Auditor's Report 1
Financial Statements:
Balance Sheet 4
Statement of Revenues, Expenditures, and Changes in Fund Balance 5 Notes to Financial Statements 6
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in
Fund Balance — 2023 Budget and Actual 13
Other Information:
Program Status: Comparison of 5 Year Plan Project Budget to Current Year Expenditures 15
Maintenance of Effort: Comparison of Base Level Amount to Annual Expenditures 16
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 17
Conrau')
Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
INDEPENDENT AUDITOR'S REPORT
Opinion
We have audited the accompanying financial statements of the Measure I Fund of the City of Yucaipa, California ("City"), as of and for the year ended June 30, 2023, and the related notes to the 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 Measure I Fund of the City, as of June 30, 2023, and the respective changes in financial position of the Measure I Fund of the City 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 Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matters
As discussed in Note 1, the financial statements present only the Measure I Fund of the City and do not purport to, and do not present fairly, the financial position of the City as of June 30, 2023, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. 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; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
23161 Lake Center Drive, Suite 200, Lake Forest, CA 92630 ■ T: (949) 552-7700 ■ www.conradlip.com
Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
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 Measure I Fund 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.
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 budgetary comparison information 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. 2 Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
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.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements of the Measure I Fund of the City. The Program Status: Comparison of 5 Year Plan Project Budget to Current Year Expenditures listed as Other Information in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The other 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.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2023 on our consideration of the City's internal control over financial reporting for the Measure I Fund and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
-lLll! �W�n
Lake Forest, California
December 19, 2023
3 CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Balance Sheet
June 30, 2023
Assets
Cash and investments (Note 3) $ 2,404,340
Taxes Receivable (Note 5) 351,525
Total assets $ 2,755,865
Liabilities, Deferred Inflows of Resources, and Fund Balance Deferred Inflows of Resources
Unavailable revenue $ 122,170
Fund Balance
Restricted 2,633,695
Liabilities, deferred Inflows of resources, and fund balance $ 2,755,865 See accompanying notes to financial statements
4 CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Statement of Revenues, Expenditures,
and Change in Fund Balance
Fiscal Year Ended June 30, 2023
Revenues:
Measure I sales tax $ 1,320,444
Interest 9,011
Unrealized gain (loss) on investment (15,709)
Total revenues 1,313,746
Expenditures:
Public works 274.573
Excess of revenues over expenditures 1,039,173
Fund balance at beginning of year 1,594,522
Fund balance at end of year $ 2,633,695
See accompanying notes to financial statements
61 (1)
(2)
CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Notes to Financial Statements
Fiscal Year Ended June 30, 2023
General Information
Reporting Entity
The financial statements are intended to reflect the financial position and changes in the financial position of the Measure I Fund of the City of Yucaipa, California (City) only.
Accordingly, the financial statements do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2023, and the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Measure I
Measure I is the half -cent sales tax collected throughout San Bernardino County for transportation improvements. In 2004, San Bernardino County voters approved the extension of the Measure I sales tax through 2040. See Note 4 for a detailed description of the Measure.
Summary of Significant Accounting Policies
The accounting policies of the Measure I Fund of the City conform to accounting policies generally accepted in the United States of America. The following is a summary of significant accounting policies.
Fund Accountinq
The accounts of the City are organized on the basis of funds. A fund is defined as an independent fiscal and accounting entity wherein operations of each fund are accounted for in a separate set of self -balancing accounts that record resources, related benefits, and equity, segregated for the purpose of carrying out specific activities. The City accounts for the Measure I activities within its Measure I Special Revenue Fund.
Special revenue funds are used to account for the proceeds of revenue sources that are restricted or committed to expenditure for specified purposes.
Measurement Focus and Basis of Accounti
The special revenue funds of the City are accounted for using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, revenues are available if they are collected within 60 days of the end of the fiscal period. Expenditures generally are recorded when a liability is incurred.
Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current resources.
L•.
CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Notes to Financial Statements
Fiscal Year Ended June 30, 2023
(2) Summary of Significant Accounting Policies (Continued) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
Revenue Recoqnition
Recognition of revenues arising from nonexchange transactions, which include revenues from taxes, certain grants, and contributions, is based on the primary characteristic from which the revenues are received by the City. For the City, funds received under Measure I possess the characteristic of a voluntary nonexchange transaction similar to a grant. Revenues under Measure I are recognized in the period when all eligibility requirements have been met.
Fund Balance
The components of the fund balances of governmental funds reflect the component classifications described below.
• Nonspendable Fund Balance — includes amounts that cannot be spent because they are either (a) not in spendable form, or (b) legally or contractually required to be maintained intact.
• Restricted Fund Balance — includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
• Committed Fund Balance — includes amounts that can be used only for the specific purposes determined by a formal action of the City.
• Assigned Fund Balance — includes amounts that are intended to be used by the City for specific purposes, but do not meet the criteria to be classified as restricted or committed. • Unassigned Fund Balance — includes any deficit fund balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.
7 CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Notes to Financial Statements
Fiscal Year Ended June 30, 2023
(2) Summary of Significant Accounting Policies (Continued) When restricted and unrestricted resources are available for expenditure for the same purpose, the City expends restricted resources before unrestricted resources. Within unrestricted resources, the fund balance is depleted in the order of committed, assigned, and unassigned.
Maintenance of Effort
In accordance with California Public Utilities Code 190300 and Ordinance No. 04-01 of the San Bernardino County Transportation Authority (SBCTA), Local Street Program funds shall not be used to supplant existing local discretionary funds being used for street and highway purposes.
The maintenance of effort (MOE) base year level was determined based upon the discretionary General Fund expenditures for transportation -related construction and maintenance activities in fiscal year 2008/2009. The MOE base year level as approved by the SBCTA Board of Directors shall remain in effect until the expiration of Measure 12010-2040. General Fund expenditures in excess of the MOE base year level will carry over to subsequent fiscal years and can be applied in a future year to offset the amount the local agency may need to meet the MOE requirement.
The City's determined MOE base level is $175,764.
Deferred Inflows of Resources
Deferred inflows of resources -unavailable revenues represents revenues earned during the period but unavailable to liquidate current liabilities. These amounts are deferred and recognized in the period that the amounts become available. Deferred inflows of resources in the financial statements represent amounts due from other governments at year-end, and not collected with a timeframe to finance current year expenditures. (3) Cash and Investments
Cash and investments are pooled by the City to facilitate cash management and maximize investment opportunities and yields. Investment income resulting from this pooling is allocated to the respective funds including the Measure I Fund based upon the average cash balance.
The investment policies and the risks related to cash and investments, applicable to the Measure I Fund, are those of the City and are disclosed in the City's basic financial statements.
The City's basic financial statements can be obtained at City Hall. 0 CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Notes to Financial Statements
Fiscal Year Ended June 30, 2023
(3) Cash and Investments (Continued)
The Measure I Fund's cash and investments pool balance is reported at fair value. The fair value measurements are based on the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Measure I Fund's deposits and withdrawals in the City Investment Pool are made on the basis of $1 and not fair value. Accordingly, the Measure I Fund's investment in the City Investment Pool is measured based on uncategorized inputs not defined as Level 1, Level 2, or Level 3.
The Measure I Fund's cash and investments as of June 30, 2023 was $2,404,340. (4) Measure I Fund
The California State Legislature authorized county transportation authorities to enact local option sales tax measures for transportation improvements in the late 1980s, under provisions of Division 19 (commencing with Section 180000) of the Public Utilities Code. In November 1989, San Bernardino County voters approved passage of Measure I, authorizing SBCTA to impose a half -cent retail transactions and use tax applicable in the incorporated and unincorporated areas of the County of San Bernardino for the 20-year period between April 1, 1990, and March 31, 2010. SBCTA is authorized to administer the programs described in the Measure. Early in the second decade of Measure I, it became apparent that continuation of the half cent sales tax would be critical to maintaining funding for transportation in San Bernardino County. SBCTA member jurisdictions and transportation stakeholders worked to identify transportation needs, and an expenditure plan was developed to serve as a basis for the renewal of Measure I. Ordinance No. 04-01 was placed before voters in November 2004, and Measure I was renewed. The new Measure I extends the half cent sales tax for 30 years, from April 1, 2010 through March 31, 2040. The new Measure is referred to as Measure 1 2010-2040 to distinguish it from the first Measure I.
Revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plan.
Measure 1 2010-2040 has a return -to -source provision that states that funds shall be allocated to subareas in accordance with the actual revenue collected in each subarea. After deduction of required Board of Equalization fees and authorized administrative costs, revenues generated in each subarea are to be expended on projects of direct benefit to that subarea. Revenues are accounted for separately for each subarea and then allocated to specified project categories in each subarea. These project categories are termed "programs" in the Strategic Plan. Decisions on how revenues are expended within the subareas are made by the SBCTA Board of Directors based upon recommendations of local subarea representatives. Other than the projects 9 CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Notes to Financial Statements
Fiscal Year Ended June 30, 2023
(4) Measure 1 Fund (Continued)
identified in the Cajon Pass Expenditure Plan, revenues generated within a subarea can be expended outside of that subarea only upon approval of two-thirds (2/3) of the jurisdictions within the affected subarea. A proportional share of projected state and federal transportation funds is to be reserved for use solely within the Valley subarea and individual Mountain/Desert (Colorado River, Morongo Basin, Mountains, North Desert, and Victor Valley) subareas. In the San Bernardino Valley subarea, Measure 1 2010-2040 contains the following programs:
• Freeway Program
• Freeway Interchange Program
• Major Street Program
• Local Street Program
• Metrolink/Rail Program
• Express Bus/Bus Rapid Transit Program
• Senior and Disabled Transit Program
• Traffic Management Systems Program
In each of the Mountain/Desert subareas, Measure 1 2010-2040 contains the following programs:
• Local Street Program
• Major Local Highway Program
• Senior and Disabled Transit Program
(5) Taxes Receivable
Taxes receivable represent the Measure I sales tax revenues in the amount of $351,525 for the fiscal year received from SBCTA after June 30, 2023.
(6) Restrictions
Funds received pursuant to the Measure I Ordinance 04-01 and the Expenditure Plan, adopted by SBCTA relating to the expenditure of Measure I revenue may only be used for transportation improvement and traffic management programs authorized in the Measure I Five Year Capital Improvement Program.
10 CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Notes to Financial Statements
Fiscal Year Ended June 30, 2023
(7) Budgetary Data
The City adopts an annual budget on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the fund level.
11 Required Supplementary Information
12 CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Fiscal Year Ended June 30, 2023
Variance From
Final Budget
Budget
Favorable
Original
Final
Actual
(Unfavorable)
Revenues:
Measure I sales tax
$ 1,421,662
$ 1,421,662
$ 1,320,444
$ (101,218)
Interest
10,000
10,000
9,011
(989)
Unrealized gain (loss) on investment
-
-
(15,709)
(15,709)
Total revenues
1,431,662
1,431,662
1,313,746
(117,916)
Expenditures:
Public works
980,000
980,000
274,573
705,427
Net change in fund balance
$ 451,662
$ 451,662
1,039,173
$ 587,511
Fund balance at beginning of year
1,594,522
Fund balance at end of year
$ 2,633,695
13 Other Information
14 CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Program Status: Comparison of 5 Year Plan Project Budget to Current Year Expenditures Fiscal Year Ended June 30, 2023
The Measure I Five Year Capital Improvement Plan for local streets was adopted by Council Resolution No. 2022-32.
Of the funds allocated under the Measure I Five Year Capital Improvement Plan, the following programs were affected during the current fiscal year:
Current Fiscal
5-Year Plan Year (Over)/Under
Local Projects Project Estimate Expenditures Estimate
Annual Pavement Management Program $ 15,091,674 $ 274,573 $ 14,817,101 Total expenditures at June 30, 2023
$ 274,573
15 CITY OF YUCAIPA, CALIFORNIA
Measure I Fund
Maintenance of Effort: Comparison of Base Level Amount to Annual Expenditures Fiscal Year Ended June 30, 2023
The maintenance of effort base level amount was determined based upon fiscal year 2008/09 spending levels. Excess/(deficient) amounts are carried forward in accordance with the Measure I Strategic Plan. Actual amounts expended in relation to the base level amount in each year subsequent to the base year are as follows:
Fiscal Year
Ending dune 30,
uenerai Tuna
Street and
Highway Funds
Utilized
Ease Level
Amount
Excess/
(Deficiency)
Cumulative
Excess/
(Deficiency)
2010
$ 400,000
$ (175,764)
$ 224,236
$ 224,236
2011
600,000
(175,764)
424,236
648,472
2012
200,000
(175,764)
24,236
672,708
2013
600,000
(175,764)
424,236
1,096,944
2014
400,000
(175,764)
224,236
1,321,180
2015
400,000
(175,764)
224,236
1,545,416
2016
400,000
(175,764)
224,236
1,769,652
2017
400,000
(175,764)
224,236
1,993,888
2018
400,000
(175,764)
224,236
2,218,124
2019
500,000
(175,764)
324,236
2,542,360
2020
456,800
(175,764)
281,036
2,823,396
2021
160,000
(175,764)
(15,764)
2,807,632
2022
310,000
(175,764)
134,236
2,941,868
111
Conraa-)
Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
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 Measure I Fund of the City of Yucaipa, California ("City"), as of and for the year ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon dated December 19, 2023. Our report included an emphasis of matter stating that the financial statements of the Measure I Fund do not purport to, and do not, present fairly the financial position of the City as of June 30, 2023.
Report on 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 opinions 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 internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
17 23161 Lake Center Drive, Suite 200, Lake Forest, CA 92630 ■ T: (949) 552-7700 ■ www.conracilip.com
Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the Measure I Fund of the City are free from material misstatement, we performed tests of its compliance with requirements described in Measure I Ordinance (the "Ordinance") as specified in the agreement between the City and San Bernardino County Transportation Authority ("SBCTA") and certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards, including the requirements of the Ordinance as specified in the agreement between the City and SBCTA.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable, for any other purpose.
Lake Forest, California
December 19, 2023
18 ATTACHMENT 5
CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3, Section 99234 Public Utilities Code
Financial Statements
Fiscal Years Ended June 30, 2023 and 2022
CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3, Section 99234 Public Utilities Code
Fiscal Years Ended June 30, 2023 and 2022
TABLE OF CONTENTS
Page
Independent Auditor's Report 1
Financial Statements:
Comparative Balance Sheets 4
Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 5
Notes to Financial Statements
0 Supplementary Information:
Schedule of Allocations Received and Expended, by Project Year 12 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 13
Conrad �
Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
INDEPENDENT AUDITOR'S REPORT
Opinion
We have audited the accompanying financial statements of the Transportation Development Act ("TDA") Article 3 Fund ("TDA Fund") of the City of Yucaipa, California ("City"), as of and for the years ended June 30, 2023, and the related notes to the 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 TDA Fund of the City, as of June 30, 2023, and the respective changes in financial position of the TDA Fund of the City for the years 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 Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities of the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matters
As discussed in Note 1, the financial statements present only the TDA Fund of the City and do not purport to, and do not present fairly, the financial position of the City as of June 30, 2023, , the changes in its financial position, or, where applicable, its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. 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; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
23161 Lake Center Drive, Suite 200, Lake Forest, CA 92630 ■ T: (949) 552-7700 ■ www.conradllp.com
Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
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 TDA Fund 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.
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.
Other Matters
Prior Year Comparative Information
The financial statements of the City as of June 30, 2022, were audited by other auditors. Those auditors expressed an unmodified opinion on those financial statements in its report dated January 27, 2023.
2 Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
Supplementary Information
Management is responsible for the other information included in the annual report. The other information comprises the Schedule of Allocations Received and Expended by Project Year but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2023 on our consideration of the City's internal control over financial reporting for the TDA Fund and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
Lake Forest, California
December 19, 2023
3 CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3, Section 99234 Public Utilities Code
Comparative Balance Sheets
June 30, 2023 and 2022
Assets
Due from other governments (Note 4)
Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities
Due to the City of Yucaipa (Note 5)
Deferred inflows of resources
Unavailable revenue (Note 4)
Fund (deficit) balance
Unassigned (Note 6)
MiY•X3
2022
$ 140,230 $ 89,728
$ 140,230 $ 89,728
140,230 89,728
(140,230) (89,728)
Total Liabilities, deferred inflows of resources, and fund balance $ 140,230 $ 89,728 See accompanying notes to financial statements
4 CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3, Section 99234 Public Utilities Code
Comparative Statement of Revenues, Expenditures,
and Changes in Fund Balance
Fiscal Years Ended June 30, 2023 and 2022
Revenues:
TDA Allocation
Expenditures:
TDA expenditures
Deficiency of revenues under expenditures
Fund (deficit) balance at beginning of year
Fund (deficit) balance at end of year
2023 2022
50,502 89,728
(50,502) (89,728)
(89,728)
$ (140,230) $ (89,728)
See accompanying notes to financial statements
61 CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3, Section 99234 Public Utilities Code
Notes to Financial Statements
Fiscal Years Ended June 30, 2023 and 2022
(1) General Information
The financial statements are intended to reflect the financial position and changes in financial position of the Transportation Development Act ("TDA") Article 3 Fund only. Accordingly, the financial statements do not purport to, and do not, present fairly the financial position of the City of Yucaipa, California ("City"), as of June 30, 2023, and 2022, and changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Article 3
The City has entered into a Cooperative Agreement ("TDA 3 Agreement") with San Bernardino County Transportation Authority ("SBCTA") to enhance bicycle and pedestrian facilities in accordance with Section 99234 of the California Public Utilities Code ("Code"). According to the Code, TDA Article 3 monies may only be used for facilities provided for the exclusive use of pedestrians and bicycles, including the construction and related engineering expenditures of those facilities, the maintenance of bicycle trails (that are closed to motorized traffic) and bicycle safety education programs. TDA Article 3 Funds may also be used for transportation -related projects that enhance quality of life through the design of pedestrian walkways and bicycle facilities. TDA Article 3 projects may be stand-alone projects, such as projects that serve the needs of commuting bicyclists, including, but not limited to, new trails serving major transportation corridors, secure bicycle parking at employment centers, park and ride lots and transit terminals where other funds are available. TDA Article 3 projects may also be add-ons to normal transportation projects, such as additional sidewalk and bike lanes on a bridge, enhanced pedestrian lighting, and median refuge islands for pedestrians.
When an approved project is ready for construction, as evidenced by a contract award or commitment of the participating agency's resources, the participating agency submits a claim to SBCTA for disbursement of TDA Funds. The participating agency may submit the claim, either prior or subsequent to, incurring project expenditures. After review and approval of the claim, SBCTA issues the allocation disbursement instructions to the County Auditor -Controller.
Following instruction from SBCTA, funds are disbursed from the County Local Transportation Fund to the participating agency.
(2) Summary of Significant Accounting Policies
The accounting policies of the TDA Article 3 Fund of the City conform to accounting principles generally accepted in the United States of America. The following is a summary of significant accounting policies:
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CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3. Section 99234 Public Utilities Code
Notes to Financial Statements
Fiscal Years Ended June 30, 2023 and 2022
(2) Summary of Significant Accounting Policies (Continued Fund Accountina
The accounts of the City are organized on the basis of funds and account groups. A fund is defined as an independent fiscal and accounting entity wherein operations of each fund are accounted for in a separate set of self -balancing accounts that record resources, related liabilities, obligations, reserves, and equity segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The City accounts for the activity of the Article 3 funds in its TDA Fund which is a Capital Project Fund. Capital project funds are used for tracking the financial resources used to acquire or construct major capital assets.
Measurement Focus and Basis of Accounting
The Capital Project Funds of the City are accounted for using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, revenues are available if they are collected within 120 days of the end of the fiscal period. Expenditures are generally recorded when a liability is incurred.
Revenue Recognition
Recognition of revenues arising from nonexchange transactions, which include revenues from taxes, certain grants, and contributions, is based on the primary characteristic from which the revenues are received by the City. For the City, funds received under TDA Article 3 possess the characteristic of a voluntary nonexchange transaction similar to a grant. Revenues under TDA Article 3 are recognized in the period when all eligibility requirements have been met.
Deferred Inflows of Resources
Deferred inflows of resources -unavailable revenues represents revenues earned during the period but unavailable to liquidate current liabilities. These amounts are deferred and recognized in the period that the amounts become available. Deferred inflows of resources in the financial statements represent amounts due from other governments at year-end, and not collected within a timeframe to finance current year expenditures. 7 CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3. Section 99234 Public Utilities Code
Notes to Financial Statements
Fiscal Years Ended June 30, 2023 and 2022
(2) Summary of Significant Accounting Policies (Continued) Fund Balance
The components of the fund balances of governmental funds reflect the component classifications described below.
• Nonspendable Fund Balance — includes amounts that cannot be spent because they are either (a) not in spendable form, or (b) legally or contractually required to be maintained intact.
• Restricted Fund Balance — includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
• Committed Fund Balance — includes amounts that can be used only for the specific purposes determined by a formal action of the City.
• Assigned Fund Balance — includes amounts that are intended to be used by the City for specific purposes, but do not meet the criteria to be classified as restricted or committed. • Unassigned Fund Balance — includes any deficit fund balance resulting from the timing of cash flows during the reimbursement process for which amounts had been restricted, committed, or assigned.
When restricted and unrestricted resources are available for expenditure for the same purpose, the City expends restricted resources before unrestricted resources. Within unrestricted resources, the fund balance is depleted in the order of committed, assigned, and unassigned.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates.
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CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3, Section 99234 Public Utilities Code
Notes to Financial Statements
Fiscal Years Ended June 30, 2023 and 2022
(3) Cash and Investments
The City has pooled its cash and investments in order to achieve a higher return on investments while facilitating management of cash. The balance in the pool account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest -bearing accounts and other investments for varying terms. The TDA Fund's cash and investments pool balance as of June 30, 2023 and 2022 was $0.
The City's internal investment pool is reported at fair value. Interest income is allocated on the basis of average cash balances. Investment policies and associated risk factors applicable to the TDA Fund are those of the City and are disclosed in the City's basic financial statements.
See the City's basic financial statements for further detail. (4) Due from Other Governments
Due from other governments for years ended June 30, 2023 and 2022 were $140,230 and $89,728, respectively. These amounts represents amounts that have been incurred by the City and expected to be reimbursed from SBCTA in the subsequent year. The amount is also included in unavailable revenues as it was not received within the City's period of availability. (5) Due to the City of Yucaipa
Due to the City of Yucaipa of $140,230 and $89,728 represents the amounts paid by the City on behalf of the TDA Fund for expenditures incurred for which reimbursements had not yet been received as of June 30, 2023 and June 30, 2022, respectively. (6) Deficit Fund Balance
The TDA fund ended the year with a deficit fund balance of $140,230 and $89,728 for year ended June 30, 2023 and 2022, respectively. Article 3 revenues are received on a reimbursement basis. The timing difference between the expenditures and receipt of TDA Article 3 revenues has created the deficit fund balance, which will be reduced as TDA Article 3 revenues are received from SBCTA.
CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3. Section 99234 Public Utilities Code
Notes to Financial Statements
Fiscal Years Ended June 30, 2023 and 2022
(7) Restrictions
Funds received pursuant to the California Public Utilities Code §99234 (TDA Article 3) may only be used for facilities provided for exclusive use by bicycle and pedestrian facilities or bicycle safety education programs.
(8) Match Requirements
The Bus Stop Landing and Sidewalk Improvements for OmniGo Route 310 project requires a local match of 77.1 %, or $169,681. The City has met the match requirements using local funds. 10 Supplemental Data
11 CITY OF YUCAIPA, CALIFORNIA
Transportation Development Act Local Transportation Fund Article 3, Section 99234 Public Utilities Code
Schedule of Allocations Received and Expended, by Project Year Fiscal Year Ended June 30, 2023
Unspent
Unspent
Year
Allocation
Allocation at
Allocation at
Article Proiect/Use Allocated
Amount
6/30/2022
Expenditures 6/30/2023
Article 3 Yucaipa City Wide Bus Slop Enhancements 2021-2022 $ 13,200
$ 13,200
$ - $ 13,200
Article 3 Bus Stop Landing and Sidewalk Improvements for OmniGo Route 310 2015-2016 50,502
50,502
50,502 -
$ 63,702
$ 63,702
$ 50,502 $ 13,200
iE
Conrad �
Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
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 Transportation Development Act Local Transportation Fund pursuant to Article 3 ("TDA Fund") of the City of Yucaipa, California ("City"), as of and for the years ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon dated December 19, 2023. Our report included an emphasis of matter stating that the financial statements of the TDA Fund do not purport to, and do not, present fairly the financial position of the City as of June 30, 2023.
Report on 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 opinions 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 internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
13 23161 Lake Center Drive, Suite 200, Lake Forest, CA 92630 a T: (949) 552-7700 ■ www.conradlip.com
Board of Directors
San Bernardino County Transportation Authority
San Bernardino, California
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the TDA Fund of the City are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including §6666 of Part 21 of the California Code of Regulations, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards, including §6666 of Part 21 of the California Code of Regulations.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Lake Forest, California
December 19, 2023
14