AGENDA REPORT
DATE: April 28, 2025
Item No. 10
TO: Honorable Mayor and City Council
FROM: Phil White, Director of Finance 6)
SUBJECT: June 30, 2024 Annual Comprehensive Financial Report & Alternative Compliance Examination Engagement
RECOMMENDATION:
That the City Council receive and file the June 30, 2024 Annual Comprehensive Financial Report & Alternative Compliance Examination Engagement.
BACKGROUND/DISCUSSION:
We are proud to present the City of Yucaipa's June 30, 2024, Annual Comprehensive Financial Report (ACFR), a document that shows how the City collected and spent its money during the fiscal year ending June 30, 2024. It includes the independent auditor's opinion on the fair presentation of the financial information in accordance with Generally Accepted Accounting Principles (GAAP).
Information presented in the ACFR aims to share the City's financial health and activity in a clear and transparent way to build trust between the City and the people who live, work, and invest here.
Components of the ACFR are audited each year following the close of the fiscal that spans July 1 thru June 30. The auditor's opinion rendered is an unmodified or "clean" opinion. There were no material weaknesses or significant deficiencies in internal control identified during the audit.
Additionally, there were no instances of noncompliance identified by the auditor. While all the information in the ACFR is useful, certain financial information may be of particular interest.
The General Fund (The City's primary operating fund) balance sheet reports assets ($59 million) exceeding liabilities ($8 million) resulting in a fund balance (equity) of $51 million. However, $19 million is reported as nonspendable fund balance and relates primarily to interfund loans in the Development Impact Fee (DIF) Capital Projects Fund. The DIF Fund reports a deficit $21 million fund balance at the end of the year. Overall, Yucaipa continues to report a strong balance sheet and added $3 million to its unassigned fund balance in the General Fund bringing the total to $18.2 million. Unassigned fund balance is a key indicator of a City's financial health and ability to maneuver in difficult times. The increase in FY24 is a positive result; the City continues to have areas of concern. The primary area to monitor on the balance sheet continues to be the DIF Fund and the interfund loan balance.
Condensed governmental fund balance sheet information is included below. This information is compiled based on the audited balance sheet on pages 14-15 in the ACFR.
Total
Miscellaneous
Development
Facilities
Miscellaneous
Governmental
General Fund Special Revenue
Impact Fees
Construction
Capital Projects Non -Major
Funds
Assets
Advances to Other Funds $18,995,018 $ -
$
$ -
$ - $
$ 18,995,018
Other Assets 40,150,044 3,003,683
2,545,459
8,451,839
6,169,642 15,978,747
76,299,414
Total Assets $59,145,062 $ 3,003,683
$ 2,545,459
$ 8,451,839
$ 6,169,642 $ 15,978,747
$ 95,294,432
Liabilities
Advances from Other Funds $
Other Liabilities
Deferred Inflows
Total Liabilities and DI
Fund Balance
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balance
Total L, DI & FB
- $ - $ 17,360,486 $ - $ $ 1,634,532 $ 18,995,018
7,399,228 2,030,345 6,016,780 317,676 5,602,812 924,428 22,291,269 841,251 123,712 73,554 51,366 1,156,924 2,246,807
8,240,479 2,154,057 23,450,820 317.676 5,654,178 3,715,884 43,533,094 19,167,365
19,167,365
849,626 515,464 14,056,262
15,421,352
13,468,799
13,468,799
8,134,163
8,134,163
18,268,419
(20,905,361) (1,793,399)
(4,430,341)
50,904,583
849,626 (20,905,361) 8,134,163 515,464 12,262,863
51,761,338
$59,145,062 $
3,003,683 $ 2,545,459 $ 8,451,839 $ 6,169,642 $ 15,978,747 $ 95,294,432
The notes to the financial statements include disclosures on key balances and transactions including the DIF interfund balances and fund balance classifications. Additionally, disclosures are presented for other key balances including cash and investments, loans receivable, pension and other post - employment liabilities and funds with accumulated deficits. The notes are an integral part of the financial statements.
The ACFR reports actual balances as opposed to a budget document that reports planned spending and revenue estimates. Budget to actual comparisons for each accounting fund are included in the ACFR. The General Fund budget to actual comparison is included on page 60 of the ACFR.
General Fund revenues exceeded budget estimates by 4% and $1.6 million. The result is consistent with historical ACFRs reporting actual revenues between 4% and 6% greater than estimated.
Accounting rules for budget administration do not require revenue budgets to receive revenue.
However, budget appropriation is required to spend and therefore actuals are historically less than budget estimates. In FY24, actuals were 9% and $4 million less than budget. The historical average for actual expenditures in comparison to budget is between 20% and 30%. The FY24 result reflects a combination of tighter budgets, delayed programming, not yet completed storm repair work, and deferred capital procurement. The budget to actual comparison for the General Fund is included below.
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Cr,ginal
Final
Amounts
(Negative)
REVENUES
Taxes:
Property Taxes
$ 13,766,000
S 13,766,000
S 14,716,261
S 950,261
Sales and Use Taxes
5,548,294
5,548,294
5,529,736
(18,558)
Franchise Taxes
1,538,000
1,538,000
1,757,501
219,501
Documentary Transfer Tax
200,000
200,000
198,320
(1,680)
Other Taxes
100,000
100,000
179,225
79,225
Licenses and Permits
1,060,304
2,137,304
1,883,453
(253,851)
Fines and Forfeitures
31,000
31,000
46,683
15,683
Charges for Services
4,820,476
6,194,803
7,180,919
986,116
Intergovernmental
6,500,000
9,400,000
7,331,376
(2,068.624)
Investment Income
5,000
5,000
1,713,694
1,708.694
Other
169,042
169,042
122,383
(46,659)
Total Revenues
33,738,116
39,089,443
40,659,551
1,570,108
EXPENDITURES
Current:
General Government:
City Manager
1,239,621
1,245,643
1,209,056
36,587
City Council
127,427
127,427
113,336
14,091
General Services/City Clerk
1,079,063
1,140,588
958,294
182,294
Information Technology
2,012,081
2,012,081
2,012,081
0 Finance
2,164,653
2,142,628
1,694,763
447,865
Non -departmental
990,392
1,035,867
644,019
391,848
Community Development
1,694,665
1,625,945
1,359,359
266,586
Building and Safety
810,343
3,773,023
3,593,489
179,534
Public Works
3,742,798
4,151,390
3,997,246
154,144
Public Safety:
Police Services
13,401,811
13,667,861
13,539,502
128,359
Fire Protection Services
5,657,462
5,708,972
5,323,249
385,723
Community Services
5,458,394
6,980,382
5,801,175
1,179,207
Capital Outlay
951,097
1,126,712
481,967
644.745
Total Expenditures
39,329,807
44,738,519
} 0,727,536
4,010,983
Excess (Deficiency) of Revenues
over Expenditures
(5,591,691)
(5,649,076)
(67,985)
5,581,091
OTHER FINANCING SOURCES (USES)
Transfers In
2,880,587
3,290,885
2,625,140
(665,745)
Transfers Out
(2,328,126)
(2,345,040)
(2,335,039)
10,001
Total Other Financing Sources (Uses)
552,461
945,845
290,101
(655,744)
Net Change in Fund Balances
(5,039,230)
(4,703,231)
222,116
4,925,347
Fund Balances. Beginning of Year
50,682,467
50,682,467
50,682,467
-
Fund Balances. End of Year
$ 45,643,237
S 45,979,236
S 50,904,583
S 4,925,347
The ACFR and the external auditor's required communication letter are included as attachments to this staff report.
In addition to the ACFR, the City's use of federal awards is subject to annual review. The City's review requirement was met through an Alternative Compliance Examination Engagement (ACEE).
The streamlined review of the ACEE resulted in an unmodified opinion which is included as an attachment to this staff report.
The Finance Committee reviewed the ACFR in detail as well as the ACEE at its April 21", 2025 meeting, and recommended presenting both documents for the City Council's consideration.
FISCAL IMPACT:
The recommendation does not result in a fiscal impact.
Attachments:
1. June 30, 2024 Required Communication Letter
2. June 30, 2024 Annual Comprehensive Financial Report
3. June 30, 2024 Alternative Compliance Examination Engagement Approved by: �-N.,
ATTACHMENT 1
.T
Van Lant&
FankhaneILLP
,0
March 31, 2025
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, 2024.
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 22, 2024. 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.
Van Lant & Fankhanel, LLP
29970 Technology Drive, Suite 105 A
Murrieta. 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 March 31, 2025.
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.
2 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,
1;�v 4-t -�- ii f
ATTACHMENT 2
s J
CITY OF YUCAIPA, CALIFORNIA
r . r
r* -
f O ram, • . r. �
i
'b
0 1
r vane
•x r _
� y � � •a� ' 1 �
/4to
ar Mi
• CITY OF
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2024
CITY OF YUCAIPA, CALIFORNIA
/_101►01_1welf]►vi1:2N4:14kiM1v/:va1►/_1 I,M/_1wN4101:41 For the Fiscal Year Ended June 30, 2024
Prepared by
Finance Department
City of Yucaipa
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
TABLE OF CONTENTS
INTRODUCTORY SECTION
Paqe
Letter of Transmittal i - iv
Principal Officials v
Organization Chart vi
GFOA Award Certificate vii
FINANCIAL SECTION
Independent Auditor's Report 1-3
Management's Discussion and Analysis 4 - 11
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Position
13 Statement of Activities
14 Fund Financial Statements:
Balance Sheet - Governmental Funds
15 - 16
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position 17 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 19 - 20
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities
21 Statement of Net Position - Proprietary Fund
22 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund 23 Statement of Cash Flows - Proprietary Fund
24 Statement of Fiduciary Net Position
25 Statement of Changes in Fiduciary Net Position
26 Notes to Financial Statements
27 - 53
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability 55 Schedule of Plan Contributions
56 Schedule of Changes in Total OPEB Liability and Related Ratios 57 - 58
Schedule of OPEB Plan Contributions
59 Budgetary Comparison Schedule — General Fund
60 Budgetary Comparison Schedule — Miscellaneous Special Revenue Fund 61 Notes to Required Supplementary Information
62 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
64 Facilities Construction Capital Projects Fund
65 Miscellaneous Capital Projects Fund
66 Non -Major Governmental Funds
Combining Balance Sheet
69 - 72
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 73 - 76
City of Yucaipa
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
TABLE OF CONTENTS - Continued
Paqe
Supplementary Information - Continued
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Gas Tax Special Revenue Fund
77 Measure I Special Revenue Fund
78 Energy Independence Program Special Revenue Fund
79 State COPs Grant Special Revenue Fund
80 Office of Traffic and Safety Special Revenue Fund
81 LLMD Special Revenue Fund
82 Housing Authority Special Revenue Fund
83 Paramedic Special Revenue Fund
84 PEG Video Special Revenue Fund
85 Capital Projects Funds:
CDBG Capital Projects Fund
86 Air Quality Improvement Capital Projects Fund
87 Pool Capital Replacement Capital Projects Fund
88 Street Maintenance Capital Projects Fund
89 TDA Article 3 Capital Projects Fund
90 Low Water Crossings Capital Projects Fund
91 Internal Services Funds:
Combining Statement of Net Position
93 Combining Statement of Revenues, Expenses and Changes in Net Position 94 Combining Statement of Cash Flows
95 Custodial Funds:
Combining Statement of Fiduciary Net Position
97 Combining Statement of Changes in Fiduciary Net Position 98 STATISTICAL SECTION
Statistics
100
Net Position by Component
101 - 102
Changes in Net Position
103 - 104
Fund Balances of Governmental Funds
105 - 106
Changes in Governmental Fund Balances
107 - 108
Assessed Value and Estimated Actual Value of Taxable Property by Major Type 109 - 110
Direct and Overlapping Property Tax Rates
111 - 112
Principal Property Tax Payers
113
Property Tax Levies and Collections
114
Ratios of Outstanding Debt by Type
115
Ratios of General Bonded Debt Outstanding
116
Direct and Overlapping Debt
117
Legal Debt Margin Information
119 - 120
Pledged Revenue Coverage
121
Demographic and Economic Statistics
122
Principal Employers
123
City Employees by Function
124
Operating Indicators by Function
125
Capital Asset Statistics by Function
126
INTRODUCTORY SECTION
CITY OF
March 31, 2025
Dear Honorable Mayor, Members of the City Council and Citizens of the City of Yucaipa:
We are proud to present the City of Yucaipa's 2023-24 Annual Comprehensive Financial Report (ACFR), a document that shows how the City collected and spent its money during the fiscal year ending June 30, 2024. It includes an independent audit to provide confidence that the report is trustworthy. Information presented in the ACFR aims to share the City's financial decisions and health in a clear and transparent way to build trust between the City and the people who live, work, and invest here.
The information in the ACFR may be used to make good decisions about budgets and projects.
Citizens may use it to learn how theirtax money is spent and to see if the City is being responsible.
Investors and businesses may use the ACFR to decide if they want to invest or do business here. In short, the ACFR is a helpful guide for anyone who wants to understand the City's finances and make informed choices for the future.
Financial Statements
The City of Yucaipa's management team prepares the City's financial statements according to Generally Accepted Accounting Principles (GAAP) set by the Government Accounting Standards Board (GASB). Management takes full responsibility for making sure the information is complete and accurate.
To make sure the information is complete and accurate, the City has set up a system of checks and balances (known as internal controls) that helps protect the City's assets from loss or misuse and ensures that the numbers in the financial statements follow these accounting rules. Since every control has a cost, the system is designed to offer reasonable —not absolute —assurance that the financial statements are free of material errors.
Auditor's Opinion
Van Lant & Fankhanel LLP, an independent firm of certified public accountants, reviewed the City's financial statements and its internal controls and has issued an unmodified opinion. An unmodified opinion means the auditors have concluded that the City's financial statements are presented reasonably accurately and in accordance with the appropriate accounting rules. This type of opinion is significant because it gives you confidence that you can trust what you see in the financial statements.
You will find the independent auditor's opinion at the front of the financial section of this report.
Management's Discussion and Analysis
Following the auditor's opinion, is the Management's Discussion and Analysis (MD&A), a narrative introduction and overview of the basic financial documents. The MD&A is an extension of this transmittal letter and is a good place to begin your study of this report.
Statistical Section
The statistical section of the ACFR provides additional context and information to assist you in understanding and assessing the City's overall financial condition.
Additional Context and Acknowledgements
The following information is presented to provide context about the City of Yucaipa and other financial and economic considerations.
City Profile
The City of Yucaipa became a "General Law" City on November 27, 1989. It covers 28 square miles in southern San Bernardino County, near the San Bernardino National Forest, and is home to about 55,000 residents.
City Government
Yucaipa has a Council -Manager form of government. The City Council has five members, each elected by district to serve four-year terms. Elections are held in November of even -numbered years. All Councilmembers have the same voting power, and once a year they choose one member to be Mayor and another to be Mayor Pro-Tem. The Council also appoints the City Manager, City Attorney, and all members of advisory boards, commissions, and committees. In addition, the Council serves as the Board of Directors for the Successor Agency to the Yucaipa Redevelopment Agency and the Yucaipa Housing Authority.
Community Features
Yucaipa is a mature suburban community in the foothills of the San Bernardino Mountains.
Thanks to its higher elevation, it enjoys cleaner air and cooler temperatures. A focus on public safety has made its crime rate one of the lowest for similar sized cities in California.
Residents have access to 18 parks, a performing arts center, a community center, a library, a senior center, an equestrian arena, and a municipal pool, along with Wildwood Canyon State Park City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 ♦ FAX 909/790-9203 ♦ e-mail: [email protected]
(900 acres for daytime use) and Yucaipa Regional Park (200 acres with three lakes and camping).
The local school district, Yucaipa-Calimesa Joint Unified, is highly ranked, and Crafton Hills College offers more than 50 majors.
City Services
City services include police and fire protection, paramedics, street construction and maintenance, planning and zoning, building inspections, engineering, recreation, enrichment programs, and general administration. Other services —like water —come from agencies such as the Yucaipa-Calimesa Joint Unified School District, Yucaipa Valley Water District, South Mesa Water Company, and Western Heights Water Company. The City contracts with the San Bernardino County Sheriff's Department for law enforcement and with CAL FIRE for fire protection and paramedic services.
Budget
Each year, the City Council adopts a budget for the fiscal year beginning July 1. The budget is organized by Funds, Departments, and Divisions, and actual spending in each Fund cannot exceed budgeted amounts in salaries, operations, or capital categories. A budget is adopted by the City Council for the General Fund and each Special Revenue Fund. The legal level of budgetary control is the Fund level and any changes at that level must be approved by the City Council.
Economic Condition and Outlook
Yucaipa is primarily a "bedroom community," meaning many residents commute elsewhere for work. Property tax is the main source of revenue for the City's General Fund, and Proposition 13 keeps property tax income relatively steady over time. In the most recent fiscal year, property tax revenue reached $15.8 million (a 7.6% increase). Because of projects like the revitalization of Historic Uptown and the Yucaipa Pointe development, sales tax has become a growing secondary revenue source, totaling $5.5 million this year —about the same as last year. However, the City expects sales tax collections to rise again once new retail and commercial businesses open.
Additionally, the community approved Measure S, a one -percent general sales tax measure on the November 2024 ballot. Measure S is expected to add $6 million in sales tax revenue beginning next fiscal year.
Several ongoing or planned projects, such as road widenings, drainage improvements, and business developments, are designed to support economic growth. By investing in infrastructure — like the drainage system that took hundreds of properties out of flood -risk zones —the City is positioning itself for long-term development.
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 ♦ FAX 909/790-9203 ♦ e-mail: [email protected]
Long -Term Financial Planning
Since incorporation, the City has preferred to pay cash for capital projects rather than take on debt. As a result, key facilities (including parks, a Community Center, Fire Station 3, Yucaipa Police Department, City Hall, and the Yucaipa Performing Arts Center) were built without borrowing money. The City also uses its reserves to leverage grants and outside funding for these projects, allowing it to keep improving local infrastructure.
Relevant Financial Policies
To protect against major financial shifts, the City Council has set aside two reserves. A General Fund Emergency Contingency of $5 million is available if a state or local emergency is declared.
An Economic Uncertainties Contingency of $1 million is available if General Fund revenue falls at least 30% short of the budget. Neither reserve was used this year.
Acknowledgments
The Government Finance Officers Association (GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting to cities that produce comprehensive and well -organized reports conforming to both U.S. GAAP and legal requirements. We believe this Annual Comprehensive Financial Report meets those standards and have submitted it for consideration.
We appreciate the City Council's support and oversight of Yucaipa's finances. Special thanks go to the City's Finance Department for their diligence in providing accurate financial information, as well as to Van Lant & Fankhanel LLP, the independent auditors who assisted in preparing this report.
Respectfully submitted,
Jenn ifer Crawf rd v
Acting City Manager
Phillip White, CPA
Director of Finance
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 ♦ FAX 909/790-9203 ♦ e-mail: [email protected]
City of Yucaipa
List of Principal Officials
June 30, 2024
City Council
Mayor
District 4
Justin Beaver
Mayor Pro Tern
District 2
Chris Venable
Council Member
District 3
Bobby Duncan
Council Member
District 1
Matt Garner
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
In
Finance
Accounting ��_ Risk
CITY OF YUCAIPA
Organizational Chart
by Departments and Divisions
RESIDENTS OF THE CITY OF YUCAIPA
City Council
-----------------------
Ckty Cvmmissians &
Committees
{Appointed}
CITY MANAGER
Governmental General Servicesl
Affairs City Clerk
Human
Resources
V�RentL.. Information
Stabilization Technology
Development
Services
I City Attomey I
Public Works I Engineering I Planning I I BuRdtng &
Sda
Code Economic
Enforcement Developmei
Community Services
Police Firms
Administration
Aquatics
Camps
Five Winds
Community
Grossing Guard
Marketing
Ranch
CenteriRecreation
Senior
Special Events
Classes Sports
Services
YPAC
5.T.A_R.S
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Yucaipa
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
at
FINANCIAL SECTION
Van Lant&
VLF Fankhanel, LLP
Certified Public Accountants I
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, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the 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, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Van Lant & Fankhanel, LLP
29970 Technology Drive. Suite 105 A
Murrieta. 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 March 31, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
March 31, 2025
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's financial activities for the fiscal year ended June 30, 2024. To obtain a complete picture of the City'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 $8.2 million or 3.5% to $241.7 million as a result of operations.
➢ The total revenues from all sources were approximately $61.7 million. The total cost of all City programs was approximately $53.4 million. Depreciation expense of $5.7 million is included in this amount.
➢ The General Fund reported revenues and transfers in of $43.3 million and expenditures and transfers out of $43.0 million for an increase in fund balance of a $0.2 million. ➢ At the end of Fiscal Year (FY) 2023-2024, the Unassigned Fund Balance in the General Fund was approximately $18.3 million, or 43% of General Fund expenditures. This represents an increase of $3.3 million in Unassigned Fund Balance. ➢ The June 30, 2024 Committed Fund Balance in the General Fund was approximately $13.5 million and includes the following:
1. Committed Reserve for Emergency Operating Contingency $ 5,000,000
2. Committed Reserve for Economic Stabilization 1,000,000
3. Committed Fund Balance for Fire Protection Services 7,468,799 Total 13,468,799
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 general revenues during the year.
The government -wide financial statements are included on pages 13 and 14.
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 $241.7 million as of June 30, 2024. This represents an increase from the previous year of $8.2 million. See Table 1, below, for a comparative analysis of net position between the fiscal years ended June 30, 2024 and June 30, 2023.
Table 1
Net Position
Governmental Activities
Fiscal Year Ended June 30
Current and other Assets
Capital Assets, Net
Total Assets
Deferred Outflows of Resources
Current Liabilties
Long Term Liabilities
Total Liabiti'es
Deferred Inflows of Resources
Net Position:
Net investment in Capital Assets
Restricted
Unrestricted
Total Net Position
2024
2023
S 70,501,622
S 62,080,606
193,941,766
191-562-417
264,443,388
253,643,023
3,942,020
3,984,740
15,438,540
13,920,328
9,961,196
9,306,445
25:399,736
23,226,773
1,2 77,929
922,188
193:941, 766
191..562.417
13,841,326
11,632,553
33,924,651
30,283,832
S 241,707,743 S 233,478,802
Current assets increased $8.4 million primarily as a result of timing of cash flow. Cash and accounts payable increased $4 million and $2 million respectively. Additionally, Notes and Loans receivable increased $4 million. A large portion of the City's net position, $193.9 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 future spending.
$13.8 million, or 5.7% 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 $33.9 million, is considered "unrestricted" and may be used to meet the government's ongoing obligations. 2 Yucaipa's primary general revenues are property tax and sales tax and both continue to be stable.
Property tax grew $1.1 million to $15.8 million. The 7 % growth exceeded the historical average growth of 5% and the revenue stream continues to be a dependable source of financial resources.
Regionally, sales tax was forecasted to flatten during the year which is consistent with Yucaipa's recognized $5.5 million. Capital Grants and contributions are nonrecurring and a significant component of the City's funding of infrastructure. This program revenue stream increased $3.4 million to $7.9 million. The City renewed its focus on identifying and charging for costs to deliver services. Charges for services increased $2.7 million during the year. Overall, revenues increased $7.2 million.
Table 2
Revenues by Source - Governmental Activities
Taxes
Property
Sales and Use
Franchise Fees
Documentary Transfer
Other Taxes
Vehicle License Fees
Investment Income
Miscellaneous
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
Total
For the Fiscal Year Ended
June 30. 2024
Annount % of Total
June 30, 2023
Amount % of Total
$15,830,863
25.7%
$14,702,749
27.0%
5,529.736
9.0%
5,488,377
10.1%
1,833,767
3.0%
1,830.862
3.4%
198,320
0.3%
238,018
0.4%
179,225
0.3%
30,037
0.1%
6,953,493
11.3%
6,425,960
11.8%
30,225
0.0%
11,955
0.0%
332,145
0.5%
204,910
0.4%
19,070,733
30.9%
16,329,217
30.0%
3,778,818
6.1%
4,710,866
8.6%
7,931,320
12.9%
4,498,377
8.3%
$ 61,668.645
100%
$ 54,471,328
100%
The following condensed summary of activities reflects that net position increased by approximately $8.2 million during the year. Yucaipa contracts for police and fire protection services. These contracts continue to utilize the highest percentage of financial resources. Public safety costs grew $2 million to $21.6 million. Community services also continued to grow, adding $1.4 million in costs as events were expanded and school -partnership programs continued to expand. Public works, community development and building and safety did not have significant changes in programming, however expenses are subject to vary due to factors such as capitalization of activity and the recognition of depreciation. The governmental affairs department was added and placed in the General Government function. General Government increased $840 thousand during the year. Overall, expenses increased $1.1 million and 2%. 7 Table 3
Summary of Activities
Governmental Activities
Fiscal Year Ended June 30
Revenues
Program Revenues:
Charges for Services
Operating Grants
Capital Grants
General Revenues:
Property Tax
Sales Tax
Other Taxes and Fees
Motor Vehicle In -Lieu Fees
Investment Incomee' disc
Total Revenues
Expenses
Public Safety
Public Works
General Government
Community Services
Community Development
Building and Safety
Total Expenses
Increase in tiet Position
Beginning Net Position
Ending Net Position
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
?0'14 2023
$ 19,070,733
3,778,818
7,931,320
15,830,863
5,529,736
2,211,312
6,953,493
362,370
61,668,645
21,566,925
12,183,311
8,402,250
6,020,215
1,568,570
3,698,433
53,439,704
8,228,941
233,478,802
$ 241,707,743
$ 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
Governmental Funds. The focus of the City's governmental funds is to provide information on the near -term inflows, outflows and balances of spendable resources. Such information may be useful in assessing the City's financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $51.8 million, an increase of $7.5 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 balance of $0.9 million. This is due primarily to long-term deficit spending in capital projects funds requiring interfund borrowings from the General Fund (see Note 3 Interfund Transactions for further discussion).
0 General Fund
The General Fund is the chief operating fund of the City. As of June 30, 2024, the Unassigned Fund Balance of the General Fund is $18.3 million. Included in the $13.5 million Committed Fund Balance is a $5 million Emergency Contingency, a $1 million Economic Stabilization reserve, and $7.5 million committed to Fire Protection. The General Fund also reports $19.1 million in Nonspendable Fund Balance related to the interfund advances bringing the total Fund Balance to $50.9 million as of June 30, 2024.
The General Fund Fund Balance increased by $0.2 million during the fiscal year. The change in Fund Balance in the prior fiscal year was a decrease of $0.3 million.
Budgeted inflows in the General Fund were approximately $42 million. The General Fund revenues played out according to the estimates as actual inflows exceeded budget by approximately $ 1 M primarily due to investment income exceeding budget. 2023/24 2023/24 Actual to
Description Budget Actual Variance Budget %
Property Tax $ 13,766,000 $ 14,716.261 $ 950,261 106.9% Sales Tax
Charges for Services
Other Taxes
Other Govermnental
Licenses & Permits
Investment Income
Miscellaneous
Transfers Iv
5,548,294
5,529,736
(18,558)
99.7%
6,194, 803
7,180,919
986,116
115.9%
1,838.000
2,135,046
297,046
116.2%
9,400,000
7,331,376
(2,068,624)
78.0%
2,137304
1,883,453
(253351)
88.1%
5.000
1,713,694
1,708,694
34273.9%
200.402
16%066
(31,336)
84.4%
3,290,885 2,625,140 (665,745) 79.8%
42.3 80.688 43.284.691 904.003 102.1 %
Budgeted outflows in the General Fund were approximately $47 million. During the year storm damage was experienced and clean up continued after June 30. Additionally, planned community service programming did not occur by year-end. This contributed to actual expenditures of $43 million being less than budget by $4 million. The City's budgeted $5 million deficit in the General Fund resulted in a break even actual result.
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. During the year, $2.2 million in ARPA was recognized. Budgeted inflows of $5.7 million translated into actual inflows of $3.8 million as some grant funded activities were not completed during the year and as such costs were not incurred. Similarly budgeted outflows of 0 $6.1 million resulted in actual expenditures of $2.8 million. Fund Balance increased by $1 million.
Capital Projects 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. During the year, Fund Balance increased by $3.1 million. Significant interfund advances payable from this Fund are further discussed at Note 3 — Interfund Transactions.
Facilities Construction
The Facilities Construction Capital Projects Fund is used as the City's primary capital projects fund. During the year, Fund Balance decreased by $0.8 million.
Miscellaneous Capital Projects
The Miscellaneous Capital Projects Fund is used to account for various restricted grant revenues for capital projects. During the year, Fund Balance increased by $0.3 million.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. As of June 30, 2024 the City's investment in capital assets is valued at $193.9 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 $2.4 million during the fiscal year which is net of deprecation expense of $5.7 million. Refer to Note 5 in the financial statements for detailed information.
10 Table 4
City of Yucaipa
Recorded Capital Assets at Year -End
(Net of Depreciation)
Land/Right of Way $ 64,413,170
Infiast uctttre
Buildings and Improvements
Equipment 1 Vehicles
Construct ion-in-Progre s s
Total Capital Assets
91,927,121
3,676,572
2,038,435
31,886,468
193.94L766
Long-term Debt. As of June 30, 2024, 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.
11 BASIC FINANCIAL STATEMENTS
12 City of Yucaipa
Statement of Net Position
June 30, 2024
ASSETS
Cash and Investments
Restricted Cash and Investments
Receivables:
Accounts
Interest
Due From Other Governments
Notes and Loans
Leases
Prepaid Items
Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated, Net of Accumulated Depreciation Total Assets
DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items
Pension Related Items
Total Deferred Outflows of Resources
LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Unearned Revenue
Noncurrent Liabilities:
Compensated Absences, Due Within One Year
Total OPEB Liability, Due Within One Year
Compensated Absences, Due in More Than One Year
Claims Liability, Due in More Than One Year
Net Pension Liability, Due in More Than One Year
Total OPEB Liability, Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Lease Related Items
OPEB Related Items
Pension Related Items
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets
Restricted for:
Public Safety
Public Works/Streets
Community Development
Community Services/Public Education
Unrestricted
Total Net Position
The accompanying notes are an integral part of this statement.
Governmental
Activities
$ 56,120,593
1,284,090
4,376,370
377,917
3,260,516
4,818,980
18,051
245,105
96,299,638
97,642,128
264,443,388
375,983
3,566,037
3,942,020
6,912,702
377,090
1,330,695
6,575,155
209,310
43,462
627,929
242,898
7,201,492
1,879,003
25,399,736
18,051
1,043,684
216,194
1,277,929
193,941,766
2,764,418
6,219,769
490,172
4,366,967
33,924,651
$ 241,707,743
13 Functions/Proarams
Governmental Activities:
General Government
Community Development
Building and Safety
Public Works
Public Safety
Community Services
Total Governmental Activities
City of Yucaipa
Statement of Activities
For the Year Ended June 30, 2024
Net(Expense)
Revenue and
Change in
Program Revenues
Net Position
Charges
Operating
Capital
for
Grants and
Grants and
Governmental
Expenses
Services
Contributions
Contributions
Activities
$ 8,402,250
$ 2,524,066
$ -
$
$ (5,878,184)
1,568,570
736,783
933,494
101,707
3,698,433
2,434,167
-
(1,264,266)
12,183,311
7,911,861
2,594,671
7,597,391
5,920,612
21,566,925
64,040
250,653
92,272
(21,159,960)
6,020,215
3,692,971
-
241,657
(2,085,587)
$ 53,439,704
$ 17,363,888
$ 3,778,818
$ 7,931,320
(24,365,678)
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
Net Position - End of Year
The accompanying notes are an integral part of this statement. 15,830,863
5,529,736
1,833,767
198,320
179,225
6,953,493
1,737,071
332,144
32,594,619
8,228,941
233,478,802
$ 241,707,743
14 ASSETS
Cash and Investments
Restricted Cash and Investments
Receivables:
Accounts
Interest
Notes and Loans
Leases
Due From Other Governments
Due From Other Funds
Advances to Other Funds
Prepaid Items
Total Assets
LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Due to Other Funds
Unearned Revenue
Advances From Other Funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Lease Related
Unavailable Revenues
City of Yucaipa
Balance Sheet
Governmental Funds
June 30, 2024
Special
General Miscellaneous
Capital Projects
Development
Impact Facilities
Fees Construction
$ 27,532,599 $ 2,519,465 $ 2,405,954 $ 3,187,599
1,284,090 - - -
2,745,162 7,563 - -
338,415 236 6,946 3,240
87,483 - - 4,500,000
18,051 - - -
1,462,025 476,419 132,559 -
6,509,872 - - 761,000
18,995,018 -
172,347 - - -
$ 59,145,062 $ 3,003,683 $ 2,545,459 $ 8,451,839
$ 5,705,770 $ 58,800 $ 465,635 $ 160,176
371,535 - - -
1,284,090 45,569 336
- 46,154 5,550,809 -
37,833 1,879,822 - 157,500
- - 17,360,486 -
7,399,228 2,030,345 23,377,266 317,676
18,051 - -
823,200 123,712 73,554
Total Deferred Inflows of Resources 841,251 123,712 73,554
FUND BALANCES
Nonspendable 19,167,365 -
Restricted - 849,626
Committed 13,468,799 - -
Assigned - 8,134,163
Unassigned 18,268,419 (20,905,361) -
Total Fund Balances 50,904,583 849,626 (20,905,361) 8,134,163 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 59,145,062 $ 3,003,683 $ 2,545,459 $ 8,451,839 The accompanying notes are an integral part of this statement. 15 Capital
Projects
Total
Non -Major Governmental
Miscellaneous Funds Funds
$ 5,792,420 $ 13,423,086 $ 54,861,123
- - 1,284,090
43,164 1,441,118
4,237,007
- 27,591
376,428
231,497
4,818,980
- -
18,051
334,058 855,455
3,260,516
- -
7,270,872
18,995,018
172,347
$ 6,169,642 $ 15,978,747 $ 95,294,432
$ 13,068 $ 334,008 $ 6,737,457
- 5,555 377,090
700 - 1,330,695
1,089,044 584,865 7,270,872
4,500,000 - 6,575,155
- 1,634,532 18,995,018
5,602,812 2,558,960 41,286,287
- - 18,051
51,366 1,156,924 2,228,756
51,366 1,156,924 2,246,807
- - 19,167,365
515,464 14,056,262 15,421,352
- - 13,468,799
8,134,163
(1,793,399) (4,430,341)
515,464 12,262,863 51,761,338
$ 6,169,642 $ 15,978,747 $ 95,294,432
16 City of Yucaipa
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position
June 30, 2024
Fund balances of governmental funds $ 51,761,338
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 96,299,638
Capital Assets Being Depreciated 279,006,557
Accumulated Depreciation (181,364,429)
Long-term debt obligations are not due and payable in the current period and, therefore, are not reported in the funds:
Compensated Absences (837,239)
Net Pension Liability (7,201,492)
Total OPEB Liability (1,922,465)
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
3,566,037
Deferred Inflows Related to Pensions
(216,194)
Deferred Outflows Related to OPEB
375,983
Deferred Inflows Related to OPEB
(1,043,684)
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. 1,054,937 Other long-term assets are not available to pay for current -period expenditures and, therefore, are deferred in the funds. 2,228,756
Net position of governmental activities $ 241,707,743
The accompanying notes are an integral part of this statement. 17 THIS PAGE INTENTIONALLY LEFT BLANK
18 City of Yucaipa
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes:
Property
Sales and Use
Franchise
Documentary Transfer
Other
Licenses and Permits
Fines and Forfeitures
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
General Government
Community Development
Building and Safety
Public Works
Public Safety
Fire Protection Services
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning, as previously reported
Change within financial reporting entity (nonmajor to major) Fund Balances, Beginning, as adjusted
Special
Revenue
Capital Projects
Development
Impact
Facilities
General
Miscellaneous
Fees
Construction
$ 14,716,261
$
$
$
5,529,736
1,757,501
198,320
179,225
1,883,453
46,683
28,153
7,180,919
74,180
6,273,966
7,331,376
3,330,571
793,672
1,713,694
24,478
74,628
452,077
122,383
47,302
-
100,000
40,659,551
3,504,684
7,142,266
552,077
6,631,549
71,642
-
-
1,359,359
-
3,593,489
104,944
-
-
3,997,246
28,439
291,980
631,592
18,862,751
19,992
-
-
-
-
135,231
5,801,175
-
-
-
481,967
92,272
4,762,817
638,067
40,727,536
317,289
5,190,028
1,269,659
(67,985)
3,187,395
1,952,238
(717,582)
2,625,140
388,468
1,351,023
167,421
(2,335,039)
(2,566,250)
(217,577)
(245,988)
290,101
(2,177,782)
1,133,446
(78,567)
222,116
1,009,613
3,085,684
(796,149)
50,682,467
(159,987)
(23,991,045)
8,930,312
50,682,467
(159,987)
(23,991,045)
8,930,312
Fund Balances, End of Year $ 50,904,583 $ 849,626 $ (20,905,361) $ 8,134,163 19 Capital
Projects
Total
Non -Major Governmental
$
$ 1,114,602
$ 15,830,863
-
5,529,736
76,267
1,833,768
-
198,320
179,225
1,883,453
-
74,836
50,000
814,740
14,393,805
390,868
7,697,367
19,543,854
35,596
447,317
2,747,790
-
63,531
333,216
476,464
10,213,824
62,548,866
-
51,014
6,754,205
12,996
1,372,355
-
3,698,433
1,890,907
6,840,164
1,719,221
20,601,964
-
135,231
-
5,801,175
149,022
3,125,536
9,249,681
149,022
6,799,674
54,453,208
327,442
3,414,150
8,095,658
474,949
5,054,860
10,061,861
(468,678)
(4,789,243)
(10,622,775)
6,271
265,617
(560,914)
333,713
3,679,767
7,534,744
-
8,764,847
44,226,594
181,751
(181,751)
-
181,751
8,583,096
44,226,594
$ 515,464 $ 12,262,863 $ 51,761,338
The accompanying notes are an integral part of this statement. 20 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, 2024
Net change in fund balances - total governmental funds $ 7,534,744 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 8,037,975
Depreciation (5,653,138)
Disposals (5,488)
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. 282,134
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. (880,221) Amounts for deferred inflows and deferred outflows related to Pension and OPEB liabilities are not reported in the funds. This is the net change in related deferred inflows and outflows:
Deferred Outflows Related to Pensions
3,107
Deferred Inflows Related to Pensions
93,476
Deferred Outflows Related to OPEB
(45,827)
Deferred Inflows Related to OPEB
(483,070)
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. This is the net change in these liabilities:
Compensated Absences (247,878)
Net Pension Liability (761,840)
Total OPEB Liability 354,967
Change in net position of governmental activities $ 8,228,941 The accompanying notes are an integral part of this statement. 21 City of Yucaipa
Statement of Net Position
Proprietary Funds
June 30, 2024
ASSETS
Current:
Cash and Investments
Accounts Receivable
Interest Receivable
Prepaid Items
Total Current Assets
LIABILITIES
Current:
Accounts Payable and Accrued Liabilities
Total Current Liabilities
Noncurrent:
Claims Payable
Total Noncurrent Liabilities
Total Liabilities
NET POSITION
Unrestricted
Governmental
Activities -
Internal Service
Funds
$ 1,259,470
139,363
1,489
72,758
1,473,080
175,245
175,245
242,898
242,898
418,143
$ 1,054,937
The accompanying notes are an integral part of this statement. 22 City of Yucaipa
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities -
Internal Service
Funds
OPERATING REVENUES
Charges for Services
$ 2,012,081
Other Income
139,086
Total Operating Revenues
2,151,167
OPERATING EXPENSES
General and Administrative 1,464,329
Property and Liability Premiums 694,230
Claims Expense 282,204
Total Operating Expenses 2,440,763
Operating Income (Loss) (289,596)
NON -OPERATING REVENUES (EXPENSES)
Investment Income 10,816
Income (Loss) before contributions and transfers (278,780) Transfers In 700,000
Transfers Out (139,086)
Total Transfers 560,914
Change in Net Position 282,134
Total Net Position, Beginning of Year 772,803
Total Net Position, End of Year $ 1,054,937
The accompanying notes are an integral part of this statement. 23 City of Yucaipa
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities -
Internal Service
Funds
Cash Flows from Operating Activities
Cash Received from Users
$ 2,012,081
Cash Paid to Employees for Salaries and Benefits
(446,774)
Cash Paid to Suppliers for Goods and Services
(950,398)
Cash Paid for Claims and Premiums
(841,554)
Other Receipts
3,452
Net Cash Provided (Used) by Operating Activities (223,193) Cash Flows from Non -Capital Financing Activities
Transfers from Other Funds 700,000
Transfers to Other Funds (139,086)
Net Cash Provided (Used) by Non -Capital Financing Activities 560,914 Cash Flows from Investing Activities
Interest Received 10,946
Net Increase (Decrease) in Cash and Cash Equivalents 348,667 Cash and Cash Equivalents, Beginning of Year 910,803
Cash and Cash Equivalents, End of Year $ 1,259,470
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities
Operating income (loss)
$ (289,596)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
(Increase) Decrease in Accounts Receivable
(135,634)
(Increase) Decrease in Prepaid Items
(72,758)
Increase (Decrease) in Accounts Payable
173,138
Increase (Decrease) in Claim Liabilities
101,657
Net Cash Provided (Used) By Operating Activities
$ (223,193)
The accompanying notes are an integral part of this statement. 24 City of Yucaipa
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
ASSETS
Cash and Investments
Cash and Investments with Fiscal Agent
Accounts Receivable
Interest Receivable
Prepaid Items
Total Assets
LIABILITIES
Accounts Payable
Accrued Liabilities
Interest Payable
Bonds Payable
Total Liabilities
NET POSITION
Restricted for Successor Agency Activities
Restricted for Individuals and Organizations
Successor Agency
Private -Purpose
Custodial
Trust Fund
Funds
$ 731,407
$ 2,187,959
582,649
293,090
-
10,924
55 -
10,169
-
1,324,280
2,491,973
13 -
8,368
-
107,418
-
6,124, 041
-
6,239,840
-
(4,915,560)
2,491,973
$ (4,915,560) $ 2,491,973
The accompanying notes are an integral part of this statement. 25 City of Yucaipa
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
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
$ 736,321 $ 2,076,641
45,301 76,529
781,622 2,153,170
187,472
323,453
271,396
4,559,106
510,925 4,830,502
270,697 (2,677,332)
(5,186,257) 5,169,305
$ (4,915,560) $ 2,491,973
The accompanying notes are an integral part of this statement. 26 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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.
27 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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.
28 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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. 29 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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.
The Miscellaneous Capital Projects Fund accounts for various grant revenues received restricted for capital projects.
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.
30 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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, 2024.
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) Prepaid Items
Prepaid items are payments to vendors for costs applicable to future accounting periods. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. 1) 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.
J) 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).
K) 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.
31 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued L) 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.
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
M) 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.
N) Unearned Revenue
The City reports unearned revenue for grants received prior to the period when eligible expenditures are incurred. The $6,575,155 in unearned revenue reported as of June 30, 2024 represents grant funds received but not yet expended on eligible costs.
O) 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.
P) 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. 32 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Q) Deferred Outflows/Inflows 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 assets 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.
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 assets 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.
R) 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.
S) 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.
T) 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, 2023
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
33 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued U) Leases
Lessor: The City is a lessor for noncancellable leases of land owned by the City. The City recognizes a lease receivable and a deferred inflow of resources in the government -wide and governmental fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially the same amount as the beginning lease receivable. The deferred inflow of resources is reduced as revenue on a straight-line basis over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
The City has entered into a lease with American Tower to allow the utilization of a cellular tower on City property. The lease term is 5 years and the agreement includes additional 5-year options. Lease payments increase by 4% each year in June under the terms of the lease. Payments received during the year were $2,694 from July through May and $2,752 in June. The current 5-year term will expire in December 2024.
At June 30, 2024 the balances of the lease receivable and deferred inflow of resources were $18,051 and $18,051, respectively.
2) CASH AND INVESTMENTS
Cash and investments are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and Investments $ 56,120,593
Restricted Cash and Investments 1,284,090
Statement of Fiduciary Net Postion:
Cash and Investments 2,919,366
Cash and Investments with Fiscal Agent 875,739
Total Cash and Investments $ 61,199,788
Cash and Investments consist of the following:
Cash on Hand $ 2,950
Deposits with Financial Institutions 3,907,965
Investments 57,288,873
Total Cash and Investments $ 61,199,788
34 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
2) CASH AND INVESTMENTS - Continued
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.
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
Municipal Bonds
Yes
5 years
30%
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
35 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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:
Remaining Maturity (in Months)
Investment Type
Total
12 Months or Less
1 to 2 Years 2 to 5 Years
U.S. Treasury Obligations
$ 22,189,804
$ 12,869,761
$ 3,697,004 $
5,623,039
U.S. Agency Securities
5,812,874
1,224,069
4,006,520
582,285
Supranational Agency Securities
242,261
242,261
-
-
Municipal Bonds
187,724
-
187,724
-
Medium Term Notes
2,509,315
452,574
321,550
1,735,191
Negotiable Certificates of Deposit
490,042
-
-
490,042
LAIF
17, 348, 366
17, 348, 366
-
-
Money Market Mutual Funds
7,632,748
7,632,748
-
-
Held by Bond Trustee:
LAIF
46,908
46,908
-
-
Money Market Mutual Funds
828,831
828,831
-
-
Total Pooled Investments
$ 57,288,873
$ 40,645,518
$ 8,212,798 $
8,430,557
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type. The investments must meet the minimum investment rating when purchased.
Investment Type
U.S. Treasury Obligations
U.S. Agency Securities
Supranational Agency Securities
Municipal Bonds
Medium Term Notes
Negotiable Certificates of Deposit
LAIF
Money Market Mutual Funds
Held by Bond Trustee:
LAIF
Money Market Mutual Funds
Total Pooled Investments
Total
Minimum
Legal
Rating
AAA
A/AA
$ 22,189, 804
N/A
$
_
$ 22,189, 804 $
5,812,874
N/A
5,812,874
242,261
A-
242,261
-
187,724
A-
-
187,724
2,509,315
A-
683,398
1,540,754
490,042
N/A
490,042
-
17,348,366
N/A
-
-
7,632,748
N/A
7,632,748
-
Rating not
BBB Required
285,163
17, 348, 366
46,908 N/A - -
828,831 AAA 828,831 - -
$ 57, 288, 873 $ 9,877,280 $ 29, 731,156 $ 285,163
46,908
$ 17,395,274
36 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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, 2024, 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, 2024, no deposits with financial institutions in excess of federal depository insurance limits were held in uncollateral ized 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, 2024, 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, 2024:
37 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
2) CASH AND INVESTMENTS - Continued
Fair Value Hierarchy
Investment Type Total Level 1 Level 2 Level 3
U.S. Treasury Obligations $ 22,189,804 $ 22,189,804 $ - $ - U.S. Agency Securities 5,812,874 - 5,812,874 -
Supranational Agency Securities 242,261 - 242,261 -
Municipal Bonds 187,724 - 187,724 -
Medium Term Notes 2,509,315 - 2,509,315 -
Total Pooled Investments $ 30,941,978 $ 22,189,804 $ 8,752,174 $ - Investment in State Investment Pool
The City is a voluntary participant in the LAIF that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables at June 30, 2024 are as follows:
Due From (Receivable)
General Fund
Facilities Construction
Total
Due To (Payable)
Miscellaneous Special Revenue
Development Impact Fees
Miscellaneous Capital Projects
Non -major Governmental Funds
Development Impact Fees
Amount
$ 46,154
4,789,809
1,089,044
584,865
761,000
$ 7,270,872
The interfund balance due to the General Fund was the result of short-term borrowings to cover deficit cash balances at June 30, 2024. The $761,000 due from non -major governmental funds is a result of short-term borrowings for capital projects. Interfund advances at June 30, 2024 are as follows:
Advances to
Other Funds (Receivable)
General Fund
General Fund
Advances From
Other Funds (Payable)
Development Impact Fees
Non -major Governmental Funds
Total Advances To/From Other Funds
Amount
$ 17,360,486
1,634,532
$ 18,995,018
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. 38 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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.
Advances Include: Interfund Loan Agreement %
Public Facilities Development Impact Fees $ 11,064,695 100% Fire Facilities Development Impact Fees 1,838,246 50%
Park Facilities Development Impact Fees 4,427,545 50%
Low Water Crossing Fund 1,634,532
18, 965, 018
Interfund transfers at June 30, 2024 are as follows:
TRANSFERS OUT
General
Fund
Miscellaneous
Special
Revenue
Development
Impact
Fees
TRANSFERSIN
Facilities
Construction
Miscellaneous
Capital
Projects
Internal
Service Fund
Non -Major
Funds
Total
General Fund
$ -
$ 7,377
$ -
$ -
$ 285,000
$ 700,000
$ 1,342,662
$ 2,335,039
Miscellaneous Special Revenue
2,261,437
-
137,392
167,421
-
-
-
2,566,250
Development Impact Fees
-
217,577
-
-
-
217,577
Facilities Construction
162,087
83,901
245,988
Miscellaneous Capital Projects
-
-
-
468,678
468,678
Non -Major Funds
224,617
1,427
1,213,631
106,048
3,243,520
4,789,243
Internal Service Funds
139,086
-
-
-
-
139,086
$ 2,625,140
$ 388,468
$ 1,351,023
$ 167,421
$ 474,949
$ 700,000
$ 5,054,860
$10,761,861
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 $700,000 transfer to the Internal Service Fund was to cover future claims expenses. The $2,261,437 transfers from the Miscellaneous Special Revenue Fund to the General Fund were to help fund various costs, including $2,176,115 of ARPA funds to cover Covid-related revenue loss. The General Fund transferred $285,000 to the Miscellaneous Capital Projects Fund for capital project costs. In addition, the Miscellaneous Capital Projects Fund transferred $468,878 to the Non -major funds for various capital projects.
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, 2024 include $231,497 in loans relating to the City's Energy Independence Program, and $87,483 relating to the City's Fagade Improvement Program. A loan secured by land in the amount of $4,500,000 is held in the Facilities Construction Capital Project Fund. Interest only payments are due monthly. Principal is due at loan maturity, December 31, 2026. The agreement also includes a purchase option at any point during the loan period. Other Notes and Loans are offset by an allowance for doubtful accounts.
39 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
5) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024 is as follows:
Governmental Activities:
Capital Assets Being Depreciated:
Buildings and Improvements
Equipment
Vehicles
Infrastructure
Total Depreciable Capital Assets
Less Accumulated Depreciation:
Buildings and Improvements
Equipment
Vehicles
Infrastructure
Total Accumulated Depreciation
Capital Assets, Net of Accumulated Depreciation
Capital Assets, Not Being Depreciated:
Land
Right of Way
Construction in Progress
Total Capital Assets Not Being Depreciated
Total Capital Assets
Beginning Ending
Balance Increases Decreases Balance
$ 15,158,183 $ - $ - $ 15,158,183
3,532,353 429,588 - 3,961,941
3,899,260 159,574 (70, 347) 3,988,487
253,063,531 2,834,415 - 255,897,946
275,653,327 3,423,577 (70,347) 279,006,557
(11,061,900)
(419,711)
- (11,481,611)
(2,542,800)
(370,809)
- (2,913,609)
(2,813,706)
(249, 537)
64,859 (2,998,384)
(159,357,744)
(4,613,081)
- (163,970,825)
(175,776,150)
(5,653,138)
64,859 (181,364,429)
99,877,177
(2,229,561)
(5,488) 97,642,128
5,050,091 - - 5,050,091
59,134,797 228,282 - 59,363,079
27,500,352 7,220,531 (2,834,415) 31,886,468
91,685,240 7,448,813 (2,834,415) 96,299,638
$ 191,562,417 $ 5,219,252 $ (2,839,903) $ 193,941,766
Depreciation expense was charged to the following functions in the Statement of Activities:
General Government
$ 282,200
Public Safety
829,730
Public Works
4,125,953
Community Development
196,215
Community Services
219,040
Total Depreciation Expense $ 5,653,138
40 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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, 2024:
Beginning Ending Due Within Due Beyond
Balance Additions Deletions Balance One Year One Year
Governmental Activities:
Total OPEB Liability
$ 2,277,432
$ - $
354,967 $ 1,922,465
$ 43,462 $ 1,879,003
Net Pension Liability
6,439,652
761,840
- 7,201,492
- 7,201,492
Claims Liability
141,241
105,137
3,480 242,898
- 242,898
Compensated Absences, Net
589,361
247,878
- 837,239
209,310 627,929
Total
$ 9,447, 686
$ 1,114, 855 $
358,447 $ 10, 204, 094
$ 252,772 $ 9, 951, 322
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, 2024:
Beginning Ending Due Within Due Beyond
Balance Additions Deletions Balance One Year One Year
Tax Allocation Bonds:
1998
$ 235,000 $
- $ 30,000
$ 205,000
$ 30,000
$ 175,000
2004
1,390,000
- 55,000
1,335,000
60,000
1,275,000
2010
4,710,000
- 140,000
4,570,000
145,000
4,425,000
Unamortized Premium
14,866
- 825
14,041
825
13,216
Total
$ 6, 349, 866 $
- $ 225,825
$ 6,124, 041
$ 235,825
$ 5,888,216
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:
41 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
7) FIDUCIARY FUND LONG-TERM DEBT - Continued
Fiscal Year Ending
June 30,
2025
2026
2027
2028
2029
Totals
2004 Tax Allocation Bonds
Principal
Interest
Total
$ 30,000
$ 10,450 $
40,450
35,000
8,662
43,662
45,000
6,463
51,463
45,000
3,987
48,987
50,000
1,375
51,375
$ 205,000 $ 30,937 $ 235,937
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,
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Totals
2010 Tax Allocation Bonds
Principal
Interest
Total
$ 60,000
$ 64,329
$ 124,329
85,000
60,900
145,900
85,000
56,862
141,862
90,000
52,650
142,650
90,000
48,263
138,263
145,000
42,534
187,534
150,000
35,250
185,250
155,000
27,625
182,625
160,000
19,750
179,750
170,000
11,500
181,500
145,000
3,625
148,625
$ 1,335,000
$ 423,288
$ 1,758,288
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.
42 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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, 2024 was $4,570,000.
Future debt service requirements are as follows:
Fiscal Year Ending
June 30,
Principal
Interest
Total
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
145,000
215,447
360,447
2030-2034
875,000
948,918
1,823,918
2035-2039
1,995,000
583,603
2,578,603
2040-2041
1,025,000
57,063
1,082,063
$ 4,570,000
$ 2,734,070
$ 7,304,070
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. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
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, 2022 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2022 actuarial valuation report. This report is a publicly available valuation report that can be obtained at CalPERS' website under Forms and Publications. 43 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
8) PENSION PLAN - Continued
The Plan's provisions and benefits in effect at June 30, 2024, are summarized as follows:
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Miscellaneous
Prior to
January 1, 2013
Miscellaneous
PEPRA
On or after
January 1, 2013
2% @ 55
2% @ 62
5 years service
5 years service
monthly for life
monthly for life
55 62
2%
2%
7%
8.25%
13.26% + $425,273
8.00%
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 $425,273 in fiscal year 2024. The City's contributions to the Plan for the year ended June 30, 2024 were $1,116,750.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan of $7,201,492. 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, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2023, and 2024 was as follows:
Proportion - June 30, 2023
Proportion - June 30, 2024
Change - Increase (Decrease)
0.13762%
0.14402%
0.00640%
44 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
8) PENSION PLAN - Continued
For the year ended June 30, 2024, the City recognized a pension expense of $1,782,006. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources
of Resources
Pension contributions subsequent to measurement date
$ 1,116,750
$ -
Differences between actual and expected experience
367,891
57,069
Changes in assumptions
434,786
-
Change in employer's proportion
480,623
-
Differences between employer's contributions and
employer's proportionate share of contributions
-
159,125
Net differences between projected and actual
earnings on plan investments
1,165,987
-
Total
$ 3,566,037
$ 216,194
$1,116,750 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, 2025. 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
2025
$ 768,880
2026
522,088
2027
908,669
2028
33,456
Actuarial Assumptions — The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
Valuation date
June 30, 2022
Measurement date
June 30, 2023
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 CalPERS-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 CaIPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. 45 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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:
46 8) PENSION PLAN - Continued
City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
1 % Decrease 5.90%
Net Pension Liability/(Asset) $ 11,698,752
Current Discount Rate 6.90%
Net Pension Liability/(Asset) $ 7,201,492
1 % Increase 7.90%
Net Pension Liability/(Asset) $ 3,499,860
Pension Plan Fiduciary Net Position — Detailed information about each pension plan's fiduciary net position is available in the separately issued CaIPERS 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 CalPERS) of the health insurance premium ($151 and $157 for the calendar years 2023 and 2024 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, 2023 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 13
Active employees 68
81 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, 2024, the City's pay-as-you-go costs were $25,632 and an implicit subsidy of $19,029.
Total OPEB Liability - The City's total OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:
47 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
9) OTHER POSTEMPLOYMENT BENEFITS - Continued
Valuation Date
June 30, 2023
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 2023, 5.50% for 2024, ultimate rate of 4.00% for 2030 and later years
Inflation Rate
2.50%
Salary Changes
3.00%
Discount Rate
3.86% - Bond Buyer 20-Bond GO index: June 30, 2023
3.69% - Bond Buyer 20-Bond GO index: June 30, 2022
Medical CPI
3.50% - used to project PERS statutory minimum benefit
Discount Rate — The discount rate used to measure the total OPEB liability was 3.86 percent and is based on the Bond Buyer 20-Bond GO index.
Changes in the Total OPEB Liability
Total OPEB
Liability (TOL)
Balance at June 30, 2023 (June 30, 2022 measurement date) $ 2,277,432
Changes in the year:
Service cost
175,859
Interest on the total OPEB liability
89,732
Changes in assumptions or other inputs
43,148
Difference between expected and actual
experience
(620,244)
Benefit payments, including implicit subsidy
(43,462)
Net changes
(354,967)
Balance at June 30, 2024 (June 30, 2023 measurement date) $ 1,922,465 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
(2.86%) (3.86%) (4.86%)
Total OPEB liability $ 2,202,354 $ 1,922,465 $ 1,694,618 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 $ 1,652,515 $
1,922,465 $ 2,268,217
48 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
9) OTHER POSTEMPLOYMENT BENEFITS - Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB - For the year ended June 30, 2024, the City recognized OPEB expense of $211,005. 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 $ 37,075 $ - Differences Between Expected and Actual Experience - 606,023 Changes in Assumptions or Other Inputs 338,908 437,661
Total $ 375,983 $ 1,043,684
The $37,075 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ended June 30, 2025. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
Year Ending
June 30,
Amount
2025
$ (54,586)
2026
(54, 586)
2027
(60,453)
2028
(81,787)
2029
(104, 448)
Thereafter
(348, 916)
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.
49 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
10) SUMMARY DISCLOSURE OF SELF-INSURANCE CONTINGENCIES
Fiscal
Claims Payable
Claims Payable
Year
Beginning of Year
Additions Deletions
End of Year
6/30/24
$ 141,241 $
105,137 $ (3,480)
$ 242,898
6/30/23
264,822
757 (124,338)
141,241
6/30/22
75,000
297,918 (108,096)
264,822
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, 2024, deferral fees owed to the City for all types of development impact fees totaled approximately $259,276.
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. 50 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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, 2024 is $9,935,000. 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 $1,673,802. 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.
51 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
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 2024, 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 - This classification includes the residual balance for the City's general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.
The City's governmental fund balances at June 30, 2024, are presented below:
Nonspendable:
Advances to Other Funds
Prepaids
Restricted for:
Capital Projects
Public Works/Street Projects
Public Safety
Landscape & Lighting
Community Services/Education
Committed to:
Emergency Contingency
Economic Stabilization
Fire Protection
Assigned to:
Capital Projects
Unassigned
Total Fund Balances
Miscellaneous Development
Miscellaneous
Non -major
General
Special Impact
Facilities Capital
Governmental
Fund
Revenue Fund Fees
Construction Projects
Funds
Total
$18,995,018
$ $
$ $
$
$18,995,018
172,347
172,347
-
62,820
62,820
849,626
515,464
6,219,769
7,584,859
-
-
2,764,418
2,764,418
3,337,525
3,337,525
1,671,730
1,671,730
5,000,000
-
5,000,000
1,000,000
1,000,000
7,468,799
7,468,799
- 8,134,163 - 8,134,163
18,268,419 - (20,905,361) - - (1,793,399) (4,430,341)
$50,904,583 $ 849,626 $ (20,905,361) $ 8,134,163 $ 515,464 $12,262,863 $51,761,338 52 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2024
15) ACCUMULATED FUND DEFICITS
At June 30, 2024, the following funds had deficit fund balances:
Major Funds — Capital Projects:
Development Impact Fees $ (20,905,361)
Non -major Funds
Housing Authority (158,963)
Low Water Crossings (1,634,436)
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. 16) CHANGE WITHIN THE FINANCIAL REPORTING ENTITY
During the year, the following changes within the financial reporting entity occurred as a result of a previously reported nonmajor fund now reported as a major fund due to the quantitative factors:
Reporting Units Affected by Adjustments to
and Restatements of Beginning Balances
Newly Major
Governmental
Fund
Miscellaneous
Capital Projects
Net position or fund balances, beginning
of year, as previously reported $ - $
Change withing the reporting entity 181,751
Net position or fund balances, beginning
of year, as restated $ 181,751 $
Non -major
Funds
(181,751)
(181,751)
53 REQUIRED SUPPLEMENTARY INFORMATION
54 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2024
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
2023
0.14402% $
7,201,492 $
5,825,390
123.62%
78.34%
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%.
55 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2024
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
2024
$ 1,116, 750 $
(1,116, 750) $
- $
6,492,568
17.20%
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, 6/30/2022
56 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2024
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
2023 2022 2021
$ 175,859 $
185,107 $
154,728
89,732
54,463
60,116
(620,244)
-
(38,585)
43,148
(588,579)
224,819
(43,462)
(49,882)
(47,193)
(354,967)
(398,891)
353,885
2,277,432
2,676,323
2,322,438
$ 1,922,465 $ 2,277,432 $ 2,676,323
$ 7,555,408 $ 5,777,443 $ 4,865,564
25.44% 39.42% 55.01 %
*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 2024, the accounting discount rate was changed from 3.69% to
3.86%. In fiscal year 2023, the account discount rate changed from 1.92% to 3.69%. 57 Measurement Period
2020 2019 2018 2017
$ 142,461 $
119,792 $
102,354 $
99,373
65,155
63,678
50,657
46,820
-
(39,127)
-
-
196,730
189,572
(104,868)
-
(41,805)
(26,360)
(28,231)
(19,085)
362,541
307,555
19,912
127,108
1,959,897
1,652,342
1,632,430
1,505,322
$ 2,322,438 $ 1,959,897 $ 1,652,342 $ 1,632,430
$ 5,131,471 $ 4,750,449 $ 3,643,825 $ 3,496,726
45.26% 41.26% 45.35% 46.68%
58 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2024
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
2024
$ 37,075
2023
43,462
2022
49,882
2021
47,193
2020
41,805
2019
26,360
2018
28,231
2017
19,085
$ (37,075) $
- $ 7,555,408
0.49%
(43,462)
- 5,825,390
0.75%
(49,882)
- 5,777,443
0.86%
(47,193)
- 4,865,564
0.97%
(41,805)
- 5,131,471
0.81%
(26,360)
- 4,750,449
0.55%
(28, 231)
- 3,643,825
0.77%
(19,085)
- 3,496,726
0.55%
Notes to the Schedule of Plan Contributions
Valuation Date: 6/30/2018, 6/30/2021, 6/30/2023
*Fiscal year 2018 was the first year of implementation, therefore, not all 10 years of information are available. 59 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Fund
Year Ended June 30, 2024
REVENUES
Taxes:
Property Taxes
Sales and Use Taxes
Franchise Taxes
Documentary Transfer Tax
Other Taxes
Licenses and Permits
Fines and Forfeitures
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
General Government:
City Manager
City Council
General Services/City Clerk
Information Technology
Finance
Non -departmental
Community Development
Building and Safety
Public Works
Public Safety:
Police Services
Fire Protection Services
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 13,766,000
$ 13,766,000
$ 14,716,261
$ 950,261
5,548,294
5,548,294
5,529,736
(18,558)
1,538,000
1,538,000
1,757,501
219,501
200,000
200,000
198,320
(1,680)
100,000
100,000
179,225
79,225
1,060,304
2,137,304
1,883,453
(253,851)
31,000
31,000
46,683
15,683
4,820,476
6,194,803
7,180,919
986,116
6,500,000
9,400,000
7,331,376
(2,068,624)
5,000
5,000
1,713,694
1,708,694
169,042
169,042
122,383
(46,659)
33,738,116
39,089,443
40,659,551
1,570,108
1,239,621
1,245,643
1,209,056
36,587
127,427
127,427
113,336
14,091
1,079,063
1,140,588
958,294
182,294
2,012,081
2,012,081
2,012,081
0 2,164,653
2,142,628
1,694,763
447,865
990,392
1,035,867
644,019
391,848
1,694,665
1,625,945
1,359,359
266,586
810,343
3,773,023
3,593,489
179,534
3,742,798
4,151,390
3,997,246
154,144
13,401,811
13,667,861
13,539,502
128,359
5,657,462
5,708,972
5,323,249
385,723
5,458,394
6,980,382
5,801,175
1,179,207
951,097
1,126,712
481,967
644,745
39,329,807
44,738,519
40,727,536
4,010,983
(5,591,691) (5,649,076) (67,985)
2,880,587 3,290,885 2,625,140
(2,328,126) (2,345,040) (2,335,039)
5,581,091
(665,745)
10,001
Total Other Financing Sources (Uses) 552,461 945,845 290,101 (655,744) Net Change in Fund Balances
Fund Balances, Beginning of Year
(5,039,230) (4,703,231) 222,116 4,925,347
50,682,467 50,682,467 50,682,467
Fund Balances, End of Year
$ 45,643,237 $ 45,979,236 $ 50,904,583 $ 4,925,347
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Miscellaneous Special Revenue Fund
Year Ended June 30, 2024
Budgeted Amounts
Original Final
REVENUES
Variance with
Final Budget
Actual Positive
Amounts (Negative)
Fines & Forfeitures
$ 13,197
$ 13,197
$ 28,153
$ 14,956
Charges for Services
50,464
50,464
74,180
23,716
Intergovernmental
4,670,457
4,906,275
3,330,571
(1,575,704)
Investment Income
-
-
24,478
24,478
Other
34,872
34,872
47,302
12,430
Total Revenues
4,768,990
5,004,808
3,504,684
(1,500,124)
EXPENDITURES
Current:
General Government
74,211
74,211
71,642
2,569
Building and Safty
189,956
281,080
104,944
176,136
Public Works
85,900
102,033
28,439
73,594
Public Safety
5,019
20,694
19,992
702
Fire Protection Services
5,000
22,994
-
22,994
Capital Outlay
-
100,000
92,272
7,728
Total Expenditures
360,086
601,012
317,289
283,723
Excess (Deficiency) of Revenues
over Expenditures
4,408,904
4,403,796
3,187,395
(1,216,401)
OTHER FINANCING SOURCES (USES)
Transfers In
602,000
690,471
388,468
(302,003)
Transfers Out
(5,284,112)
(5,536,854)
(2,566,250)
2,970,604
Total Other Financing Sources (Uses)
(4,682,112)
(4,846,383)
(2,177,782)
2,668,601
Net Change in Fund Balance
(273,208)
(442,587)
1,009,613
1,452,200
Fund Balance, Beginning of Year (159,987) (159,987) (159,987) - Fund Balance, End of Year $ (433,195) $ (602,574) $ 849,626 $ 1,452,200 61 City of Yucaipa
Notes to Required Supplementary Information
Year Ended June 30, 2024
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).
62 SUPPLEMENTARY INFORMATION
63 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, 2024
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
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 2,590,000 $ 2,590,000 $ 6,273,966 $ 3,683,966
- - 793,672 793,672
- - 74,628 74,628
7,914,000 7,914,000 - (7,914,000)
10,504,000 10,504,000 7,142,266 (3,361,734)
314,181 314,181 291,980 22,201
135,231 135,231 135,231 -
6,324,000 27,509,634 4,762,817 22,746,817
6,773,412 27,959,046 5,190,028 22,769,018
3,730,588 (17,455,046) 1,952,238 19,407,284
11,113,447 13,219,447 1,351,023 (11,868,424)
(1,475,000) (3,798,578) (217,577) 3,581,001
Total Other Financing Sources (Uses)
9,638,447
9,420,869
1,133,446 (8,287,423)
Net Change in Fund Balances
13,369,035
(8,034,177)
3,085,684 11,119,861
Fund Balances (Deficit), Beginning of Year
(23,991,045)
(23,991,045)
(23,991,045) -
Fund Balances (Deficit), End of Year
$(10,622,010)
$ (32,025,222)
$ (20,905,361) $11,119,861
64 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Facilities Construction Capital Projects Fund Year Ended June 30, 2024
REVENUES
Charges for Services
Investment Income
Other
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)
452,077 452,077
100,000 100,000
552,077 552,077
272,000
2,842,328
631,592
2,210,736
4,757
2,592,648
638,067
1,954,581
276,757
5,434,976
1,269,659
4,165,317
(276,757) (5,434,976) (717,582) 4,717,394
Transfers In
374,666
542,087
167,421
(374,666)
Transfers Out
-
(662,088)
(245,988)
416,100
Total Other Financing Sources (Uses)
374,666
(120,001)
(78,567)
41,434
Net Change in Fund Balances
97,909
(5,554,977)
(796,149)
4,758,828
Fund Balances, Beginning of Year
8,930,312
8,930,312
8,930,312
-
Fund Balances, End of Year $
9,028,221
$ 3,375,335
$ 8,134,163 $
4,758,828
65 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Miscellaneous Capital Projects Fund Year Ended June 30, 2024
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
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 6,194,800 $ 6,194,800 $ 390,868 $ (5,803,932)
- - 35,596 35,596
6,372 491,372 50,000 (441,372)
37,000 37,000 - (37,000)
6,238,172 6,723,172 476,464 (6,246,708)
285,186 1,861,466 149,022 1,712,444
285,186 1,861,466 149,022 1,712,444
5,952,986 4,861,706 327,442 (4,534,264)
285,000 877,731 474,949 (402,782)
(6,194,800) (6,693,158) (468,678) 6,224,480
Total Other Financing Sources (Uses) (5,909,800) (5,815,427) 6,271 5,821,698 Net Change in Fund Balances
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
43,186 (953,721) 333,713 1,287,434
181,751 181,751 181,751
$ 224,937 $ (771,970) $ 515,464 $ 1,287,434
THIS PAGE INTENTIONALLY LEFT BLANK
67 NON -MAJOR GOVERNMENTAL FUNDS
.:
City of Yucaipa
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2024
Special Revenue
Energy
Independence State
Gas Tax Measure I Program COPs Grant
ASSETS
Cash and Investments
$
-
$
1,217,920
$
3,387
$
799,299
Receivables:
Accounts
-
1,349,680
-
-
Interest
1,402
-
-
-
Due From Other Governments
414,340
112,904
-
-
Notes and Loans Receivable
-
-
231,497
-
Prepaid Items
-
-
-
-
Total Assets
$
415,742
$
2,680,504
$
234,884
$
799,299
LIABILITIES
Accounts Payable
$
36,196
$
-
$
-
$
8,023
Accrued Liabilities
5,555
-
-
-
Deposits Payable
-
-
-
-
Due to Other Funds
109,244
-
-
-
Advances From Other Funds
-
-
-
-
Total Liabilities
150,995
-
-
8,023
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
38,539
1,035,617
-
-
FUND BALANCES
Nonspendable
-
-
-
-
Restricted
226,208
1,644,887
234,884
791,276
Unassigned
-
-
-
-
Total Fund Balances
226,208
1,644,887
234,884
791,276
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
$
415,742
$
2,680,504
$
234,884
$
799,299
.•
Special Revenue
Office of
Traffic and Housing
Safety LLMD Authority Paramedic PEG Video
$ 128,224 $ 3,374,080 $
- 1,725
1,691
6,943
- $ 1,778,643 $ 1,011,096
6,236 65,131 18,346
2 19,220 -
- 10,841 -
$ 128,224 $ 3,384,439 $ 6,238 $ 1,873,835 $ 1,029,442
$ - $ 46,914 $ 7 $ 28,917 $ -
165,194 - -
46,914 165,201 28,917 -
128,224 3,337,525 - 1,844,918 1,029,442
- - (158,963) - -
128,224 3,337,525 (158,963) 1,844,918 1,029,442
$ 128,224 $ 3,384,439 $ 6,238 $ 1,873,835 $ 1,029,442
Continued
70 City of Yucaipa
Combining Balance Sheet
Non -Major Governmental Funds (Continued)
June 30, 2024
Capital Projects
Air Pool
CDBG Quality Capital Street
Capital Improvement Replacement Maintenance
ASSETS
Cash and Investments
$
504,228
$
54,181
$
8,639
$
4,543,389
Receivables:
Accounts
-
-
-
-
Interest
1,822
-
-
3,358
Due From Other Governments
230,328
-
-
-
Notes and Loans Receivable
-
-
-
-
Prepaid Items
-
-
-
-
Total Assets
$
736,378
$
54,181
$
8,639
$
4,546,747
LIABILITIES
Accounts Payable
$
15,878
$
-
$
-
$
198,073
Accrued Liabilities
-
-
-
-
Deposits Payable
-
-
-
-
Due to Other Funds
230,328
-
-
-
Advances From Other Funds
-
-
-
-
Total Liabilities
246,206
-
-
198,073
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Land Sale
82,768
-
-
-
FUND BALANCES
Nonspendable
-
-
-
-
Restricted
407,404
54,181
8,639
4,348,674
Unassigned
-
-
-
-
Total Fund Balances
407,404
54,181
8,639
4,348,674
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
$
736,378
$
54,181
$
8,639
$
4,546,747
71 Capital Projects
Total Nonmajor
TDA Low Water Governmental
Article 3 Crossings Funds
$ 13,423,086
- 1,441,118
- 96 27,591
80,099 - 855,455
- - 231,497
$ 80,099 $ 96 $ 15,978,747
$ - $ - $ 334,008
5,555
80,099 - 584,865
- 1,634,532 1,634,532
80,099 1,634,532 2,558,960
14,056,262
- (1,634,436) (1,793,399)
- (1,634,436) 12,262,863
$ 80,099 $ 96 $ 15,978,747
72 City of Yucaipa
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non -Major Governmental Funds
Year Ended June 30, 2024
REVENUES
Taxes:
Property Taxes
Franchise Taxes
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
General Government
Community Development
Public Works
Public Safety
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning, as previously reported
Change within financial reporting entity
(nonmajor to major)
Fund Balances, Beginning, as adjusted
Fund Balances, End of Yeai
Special Revenue
Energy
Independence State
Gas Tax Measure I Program COPs Grant
8,417 - - -
2,912,993 3,329,240 - 186,306
33,075 107,077 21,262 -
2,954,485 3,436,317 21,262 186,306
1,230,966 - - -
- - - 112,200
104,726 - - -
1,335,692 - - 112,200
1,618,793
3,436,317
21,262 74,106
-
9,535
- -
(1,430,000)
(3,031,991)
(39,641) -
(1,430,000)
(3,022,456)
(39,641) -
188,793
413,861
(18,379) 74,106
37,415
1,231,026
253,263 717,170
$ 226,208 $ 1,644,887 $ 234,884 $ 791,276
73 (Formerly
Special Revenue nonmajor)
Office of Miscellaneous
Traffic and Housing Capital
Safety LLMD Authority Paramedic PEG Video Projects
$ - $ - $ - $ 1,114,602 $ - $ -
- 76,267 -
806,323 - - - -
101,830 - 56,074 33,189 -
908,153 - 1,170,676 109,456 -
- -
50,929
-
85 -
- 659,941
-
-
- -
- -
-
1,607,021
- -
- 659,941
50,929
1,607,021
85 -
- 248,212
(50,929)
(436,345)
109,371 -
- -
-
1,333,126
- -
- -
-
-
(16,136) -
- -
-
1,333,126
(16,136) -
- 248,212
(50,929)
896,781
93,235 -
128,224 3,089,313
(108,034)
948,137
936,207 181,751
- -
-
-
- (181,751)
128, 224 3,089,313
(108,034)
948,137
936,207 -
$ 128,224 $ 3,337,525 $ (158,963) $ 1,844,918 $ 1,029,442 $ - Continued
74 City of Yucaipa
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non -Major Governmental Funds (Continued) Year Ended June 30, 2024
REVENUES
Taxes:
Property Taxes
Franchise Taxes
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
General Government
Community Development
Public Works
Public Safety
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Capital Projects
Air Pool
CDBG Quality Capital Street
Capital Improvement Replacement Maintenance
386,234 16,578 - -
15,711 1,167 299 77,149
401,945 17,745
12,996 -
324,872 4,506
337,868 4,506
64,077 13,239
7,315 71,935
Total Other Financing Sources (Uses) 7,315 71,935
Net Change in Fund Balances 71,392 85,174
Fund Balances, Beginning, as previously reported 336,012 (30,993) Change within financial reporting entity
(nonmajor to major) - -
Fund Balances Beginning as adjusted 336 012 (30 993)
299 77,149
2,691,432
2,691,432
299 (2,614,283)
3,599,657
(83,427)
- 3,516,230
299 901,947
8,340 3,446,727
Fund Balances, End of Yeai $ 407,404 $ 549181 $ 8,639 $ 4,348,674 75 Capital Projects
Total Nonmajor
TDA Low Water Governmental
Article 3 Crossings Funds
$ - $ - $ 1,114,602
76,267
814,740
130,601 735,415 7,697,367
- 484 447,317
63,531 63,531
130,601 799,430 10,213,824
- 51,014
- 12,996
- 1,890,907
- 1,719,221
3,125, 536
6,799,674
130,601 799,430 3,414,150
9,629 23,663 5,054,860
- (188,048) (4,789,243)
9,629 (164,385) 265,617
140,230 635,045 3,679,767
(140,230) (2,269,481) 8,764,847
(181,751)
(140,230) (2,269,481) 8,583,096
$ - $ (1,634,436) $ 12,262,863
76 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2024
REVENUES
Charges for Services
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers 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 $ 8,417 $ (1,583)
2,917,674 2,912,993 (4,681)
- 33,075 33,075
2,927,674 2,954,485 26,811
1,416,594
1,230,966
185,628
215,000
104,726
110,274
1,631,594
1,335,692
295,902
1,296,080 1,618,793 322,713
(1,430,000)
(1,430,000) -
(1,430,000)
(1,430,000) -
(133,920)
188,793 322,713
37,415 37,415 -
$ (96,505) $ 226,208 $ 322,713
77 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure I Special Revenue Fund
Year Ended June 30, 2024
REVENUES
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ 9,143,943 $ 3,329,240 $ (5,814,703)
10,000 107,077 97,077
9,153,943 3,436,317 (5,717,626)
2,107 - 2,107
2,107 - 2,107
9,151,836 3,436,317 (5,715,519)
9,537 9,535 (2)
(11,011,651) (3,031,991) 7,979,660
(11,002,114) (3,022,456) 7,979,658
(1,850,278) 413,861 2,264,139
1,231,026 1,231,026 -
$ (619,252) $ 1,644,887 $ 2,264,139
78 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, 2024
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
Final
Budgeted Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ 17,631 $ 21,262 $ 3,631
17,631 21,262 3,631
(39,641) (39,641)
(22,010) (18,379) 3,631
253,263 253,263
$ 231,253 $ 234,884 $ 3,631
79 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, 2024
REVENUES
Intergovernmental
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)
$ 100,000 $ 186,306 $ 86,306
112,200 112,200
(12,200) 74,106 86,306
717,170 717,170
$ 704,970 $ 791,276 $ 86,306
:e
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, 2024
REVENUES
Investment Income
Total Revenues
EXPENDITURES
Current:
Public Safety
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
40,000 - 40,000
40,000 - 40,000
(40,000) - 40,000
128,224 128,224 -
$ 88,224 $ 128,224 $ 40,000
81 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - LLMD Special Revenue Fund
Year Ended June 30, 2024
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)
$ 878,694 $ 806,323 $ (72,371)
- 101,830 101,830
878,694 908,153 29,459
1,078,694 659,941 418,753
(200,000) 248,212 448,212
(200,000) 248,212 448,212
3,089,313 3,089,313 -
$ 2,889,313 $ 3,337,525 $ 448,212
82 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Housing Authority Special Revenue Fund Year Ended June 30, 2024
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
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 53,462 $ 50,929 $ 2,533
53,462 50,929 2,533
(53,462) (50,929) 2,533
(53,462) (50,929) 2,533
(108,034) (108,034) -
$ (161,496) $ (158,963) $ 2,533
83 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Paramedic Special Revenue Fund
Year Ended June 30, 2024
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)
$ 1,090,000 $ 1,114,602 $ 24,602
- 56,074 56,074
1,090,000 1,170,676 80,676
2,402,502 1,607,021 795,481
(1,312,502) (436,345) 876,157
1,333,126 1,333,126 -
1,333,126 1,333,126 -
20,624 896,781 876,157
948,137 948,137 -
$ 968,761 $ 1,844,918 $ 876,157
84 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - PEG Video Special Revenue Fund
Year Ended June 30, 2024
REVENUES
Franchise Taxes
Investment Income
Total Revenues
EXPENDITURES
Current:
General Government
Total Expenditures
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)
$ 92,000
$ 76,267
$ (15,733)
-
33,189
33,189
92,000
109,456
17,456
85 85
-
85 85
-
91,915
109,371
17,456
(16,136)
(16,136)
-
91,915
93,235
17,456
936,207
936,207
-
$ 1,028,122
$ 1,029,442
$ 1,320
85 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CDBG Capital Projects Fund
Year Ended June 30, 2024
REVENUES
Intergovernmental
Investment Income
Total Revenues
EXPENDITURES
Current:
General Government
Community Development
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)
$ 239,942 $ 386,234 $ 146,292
- 15,711 15,711
239,942 401,945 162,003
25,991
12,996
12,995
1,762,852
324,872
1,437,980
1,788,843
337,868
1,450,975
(1,548,901) 64,077 1,612,978
1,012,000
7,315 (1,004,685)
(10,000)
- 10,000
1,002,000
7,315 (994,685)
(546,901)
71,392 618,293
336,012 336,012 -
$ (210,889) $ 407,404 $ 618,293
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, 2024
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
Variance with
Final
Final Budget
Budgeted
Actual
Positive
Amounts
Amounts
(Negative)
$ -
$ 16,578
$ 16,578
-
1,167
1,167
-
17,745
17,745
526,093
4,506
521,587
(526,093)
13,239
539,332
358,000
71,935
(286,065)
(131,935)
-
131,935
226,065
71,935
(154,130)
(300,028)
85,174
385,202
(30,993)
(30,993)
-
$ (331,021)
$ 54,181
$ 385,202
87 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, 2024
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)
$ - $ 299 $ 299
299 299
8,340 8,340
$ 8,340 $ 8,639 $
299
::
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Street Maintenance Capital Projects Fund Year Ended June 30, 2024
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)
$ 91,940 $ - $ (91,940)
- 77,149 77,149
91,940 77,149 (14,791)
4,476,132 2,691,432 1,784,700
4,476,132 2,691,432 1,784,700
(4,384,192) (2,614,283) 1,769,909
3,517,657 3,599,657 82,000
(83,428) (83,427) 1
3,434,229 3,516,230 82,001
(949,963) 901,947 1,851,910
3,446,727 3,446,727 -
$ 2,496,764 $ 4,348,674 $ 1,851,910
:•
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, 2024
REVENUES
Intergovernmental
OTHER FINANCING SOURCES (USES)
Transfers In
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)
$ - $ 130,601 $ 130,601
9,629 9,629 -
9,629 140,230 130,601
(140,230) (140,230) -
$ (130,601) $ - $ 130,601
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, 2024
REVENUES
Intergovernmental
Investment Income
Other
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)
$ - $ 735,415 $ 735,415
- 484 484
- 63,531 63,531
799,430 799,430
6,004,248 - 6,004,248
(6,004,248) 799,430 6,803,678
5,786,800
23,663
(5,763,137)
(188,049)
(188,048)
1 5,598,751
(164,385)
(5,763,136)
(405,497)
635,045
1,040,542
(2,269,481)
(2,269,481)
-
(2,674,978)
$ (1,634,436)
$ 1,040,542
91 INTERNAL SERVICE FUNDS
M
City of Yucaipa
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
ASSETS
Current:
Cash and Investments
Accounts Receivable
Interest Receivable
Prepaid Items
Total Current Assets
LIABILITIES
Current:
Accounts Payable and Accrued Liabilities
Noncurrent:
Claims Payable
Total Liabilities
NET POSITION
Unrestricted
Information
Self Insurance Technology
Totals
$ 620,624 $ 638,846 $ 1,259,470
139,363 - 139,363
1,489 - 1,489
- 72,758 72,758
761,476 711,604 1,473,080
31,661 143,584 175,245
242,898 - 242,898
274,559 143,584 418,143
$ 486,917 $ 568,020 $ 1,054,937
93 City of Yucaipa
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2024
OPERATING REVENUES
Charges for Services
Other Income
Total Operating Revenues
OPERATING EXPENSES
General and Administrative
Property and Liability Premiums
Claims Expense
Total Operating Expenses
Operating Income (Loss)
NON -OPERATING REVENUES (EXPENSES)
Investment Income
Income (Loss) before contributions and transfers
Transfers In
Transfers Out
Total Transfers
Change in Net Position
Total Net Position, Beginning of Year
Total Net Position, End of Year
Information
Self Insurance
Technology
Totals
$ -
$ 2,012,081 $
2,012,081
139,086
-
139,086
139,086
2,012,081
2,151,167
20,268
1,444,061
1,464,329
694,230
-
694,230
282,204
-
282,204
996,702
1,444,061
2,440,763
(857,616)
568,020
(289,596)
10,816
10,816
(846,800)
568,020 (278,780)
700,000
- 700,000
(139,086)
- (139,086)
560,914
- 560,914
(285,886)
568,020 282,134
772,803
$ 486,917 $
- 772,803
568,020 $ 1,054,937
94 City of Yucaipa
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Cash Flows from Operating Activities
Cash Received from Users
Cash Paid to Employees for Salaries and Benefits
Cash Paid to Suppliers for Goods and Services
Cash Paid for Claims and Premiums
Other Receipts
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non -Capital Financing Activities
Transfers from Other Funds
Transfers to Other Funds
Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Investing Activities
Interest Received
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Yea
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 Prepaid Items
Increase (Decrease) in Accounts Payable and Accrued Liabilities Increase (Decrease) in Claim Liabilities
Net Cash Provided (Used) By Operating Activities
Self Insurance
Information
Technology
Totals
$ -
$ 2,012,081 $
2,012,081
(20,184)
(426,590)
(446,774)
(3,753)
(946,645)
(950,398)
(841,554)
(841,554)
3,452
-
3,452
(862,039) 638,846 (223,193)
700,000
(139,086)
700,000
(139,086)
560,914
560,914
10,946 - 10,946
(290,179) 638,846 348,667
910,803 - 910,803
$ 620,624 $ 638,846 $ 1,259,470
$ (857,616) $ 568,020 $ (289,596)
(135,634) (135,634)
- (72,758) (72,758)
29,554 143,584 173,138
101,657 - 101,657
$ (862,039) $ 638,846 $ (223,193)
95 CUSTODIAL FUNDS
M.
City of Yucaipa
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2024
ASSETS
Cash and Investments
Cash and Investments with Fiscal Agents
Accounts Receivable
Interest Receivable
Total Assets
LIABILITIES
Accounts Payable
Total Liabilities
NET POSITION
Restricted for Organizations and Individuals
Police CFD 98-1
Department Cramer Debt
$ 56,830 $ 54,820 $ 2,076,309 $ 2,187,959
- - 293,090 293,090
10,924 10,924
56,830 54,820 2,380,323 2,491,973
$ 56,830 $ 54,820 $ 2,380,323 $ 2,491,973
97 City of Yucaipa
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended June 30, 2024
ADDITIONS
Taxes and Assessments Collected for Others
Investment Income
Total Additions
DEDUCTIONS
General and Administrative
Payments to Bondholders
Total Deductions
Net Change in Fiduciary Net Position
Net Position, Beginning of Year
Net Position, End of Year
Police
CFD 98-1
Department
Cramer
Debt
Donation
House
Reserves
Totals
$ -
$ -
$ 2,076,641
$ 2,076,641
1,967
1,898
72,664
76,529
1,967
1,898
2,149,305
2,153,170
-
-
271,396
271,396
-
-
4,559,106
4,559,106
-
-
4,830,502
4,830,502
1,967
1,898
(2,681,197)
(2,677,332)
54,863
52,922
5,061,520
5,169,305
$ 56,830
$ 54,820
$ 2,380,323
$ 2,491,973
9.1 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 101
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 109
These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.
Debt Capacity 115
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 122
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 124
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.
100
Net Position:
Investment in Capital Assets
Restricted for:
Low and Moderate Housing
Public Safety
Public Works/Streets
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
2024 2023
2022
2021
2020
$ 193,941,766 $ 191,562,417
$ 192,150,325
$ 187,300,451
$ 193,575,047
-
-
437
2,764,418 1,793,531
1,290,274
842,456
689,126
6,219,769 4,712,120
3,403,692
172,578
134,574
490,172 1,101,382
1,297,916
8,399
8,364
4,366,967 4,025,520
3,643,830
3,433,073
3,100,353
- -
8,227,206
8,798,378
115,836
- -
-
-
1,245,728
33,924,651 30,283,832
24,234,997
25,981,533
25,066,595
$ 241,707,743 $ 233,478,802
$ 234,248,240
$ 226,536,868
$ 223,936,060
101
Fiscal Year
2019 2018 2017 2016 2015
$ 187,442,518
$ 173,234,642
$ 161,130,470
$ 155,769,811
$ 150,107,657
21,998
50,095
93,740
-
-
773,906
1,147,116
1,437,359
1,709,562
1,731,433
1,345,343
1,795,685
3,136,626
3,001,667
9,715,836
4,306
306
13,106
14,494
12,815
2,914,000
2,679,478
2,497,976
2,550,577
2,308,616
2,451,698
2,598,651
3,590,668
4,680,900
347,493
1,288,717
1,277,363
1,510,011
1,489,306
1,472,937
23,879,234
33,974,660
34,487,009
38,545,036
38,714,479
$ 220,121,720
$ 216,757,996
$ 207,896,965
$ 207,761,353
$ 204,411,266
102
Expenses:
Governmental activities:
General Government
Community Development
Building and Safety
Public Works
Public Safety
Community Services
Total Governmental Activities
CITY OF YUCAIPA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2024 2023 2022 2021 2020
$ 8,402,250
$ 7,564,205
$ 4,943,392
$ 5,523,173
$ 4,640,613
1,568,570
1,544,928
2,724,779
2,662,672
2,267,651
3,698,433
1,711,222
1,163,594
814,756
609,026
12,183,311
17,408,927
12,003,117
13,813,740
10,128,308
21,566,925
19,525,389
18,010,685
16,728,825
16,758,782
6,020,215
4,629,458
3,520,861
1,846,775
2,720,132
53,439,704
52,384,129
42,366,428
41,389,941
37,124,512
Program Revenues:
Governmental activities:
Charges for Services
17,363,888
16,329,217
7,477,356
4,557,440
4,492,201
Operating Grants and Contributions
3,778,818
4,710,866
5,938,900
3,568,495
2,203,890
Capital Grants and Contributions
7,931,320
4,498,377
9,340,764
9,636,799
9,938,960
Total governmental activities program revenues
29,074,026
25,538,460
22,757,020
17,762,734
16,635,051
Net (Expense) Revenue and Change in Net Position
(24,365,678)
(26,845,669)
(19,609,408)
(23,627,207)
(20,489,461)
General Revenues:
Taxes:
Property Taxes
15,830,863
14,702,749
13,802,354
13,283,544
12,598,276
Sales and Use Taxes
5,529,736
5,488,377
5,299,433
4,600,872
3,751,828
Franchise Taxes
1,833,767
1,830,862
1,672,542
1,567,185
1,491,027
Documentary Transfer Tax
198,320
238,018
318,285
311,936
186,819
Other Taxes
179,225
30,037
23,658
22,299
22,379
Vehicle License Fees, Unrestricted
6,953,493
6,425,960
5,931,673
5,689,226
5,448,407
Investment Income
1,737,071
11,955
(187,606)
43,503
412,106
Miscellaneous
332,144
204,910
460,441
5,674,866
392,959
Total General Revenue
32,594,619
28,932,868
27,320,780
31,193,431
24,303,801
Change in Net Position
8,228,941
2,087,199
7,711,372
7,566,224
3,814,340
Net Position- Beginning of the Year
233,478,802
231,391,603
226,536,868
218,970,644
220,121,720
Net Position- End of the Year
$ 241,707,743
$ 233,478,802
$ 234,248,240
$ 226,536,868
$ 223,936,060
103
Fiscal Year
2019 2018 2017 2016 2015
$ 4,052,236
$ 4,093,998
$ 3,810,457 $
3,217,017
$ 3,059,021
2,374,236
2,256,053
2278822
5564038
5170508
478,236
387,227
443,510
535,135
470,200
8,542,114
8,011,508
5,836,411
6,628,742
6,745,133
15,425,996
14,453,214
13,564,138
12,526,134
12,038,940
2,474,834
2,012,974
2,549,809
1,893,305
2,106,093
33,347,652
31,214,974
28,483,147
30,364,371
29,589,895
4,452,055
3,598,357
3,695,175
3,601,914
3,146,047
1,698, 865
1,730, 819
1,590,665
1,712, 301
1,743,410
6,044,151
13,559,464
1,648,680
7,479,465
3,671,538
12,195,071
18,888,640
6,934,520
12,793,680
8,560,995
(21,152,581)
(12,326,334)
(21,548,627)
(17,570,691)
(21,028,900)
12,136,328
11,616,465
11,072,145
10,411,588
10,034,783
4,178,316
3,491,965
3,446,413
3,528,777
3,178,195
1,422,487
1,381,727
1,339,715
1,415,951
1,427, 826
165,803
196,525
187,977
165,430
173,871
22,903
22,529
22,666
22,941
18,253
5,183,224
4,961,077
4,706,421
4,459,501
4,267,755
646,973
64,534
183,557
463,238
482,999
760,271
391,399
725,345
453,352
558,284
24,516,305
22,126,221
21,684,239
20,920,778
20,141,966
3,363,724
9,799,887
135,612
3,350,087
(886,934)
216,757,996
206,958,109
207,761,353
204,411,266
205,298,200
$ 220,121,720
$ 216,757,996
$ 207,896,965
$ 207,761,353
$ 204,411,266
104
CITY OF YUCAIPA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2024
2023
2022
2021
2020
General Fund:
Nonspendable
$ 19,167,365
$ 21,029,653
$ 22,929,682
$ 24,846,293
$ 26,910,385
Restricted
-
-
-
-
-
Committed
13,468,799
14,660,463
17,237,963
15,853,604
18,324,766
Assigned
-
-
-
2,387,911
3,187,945
Unassigned
18,268,419
14,992,351
10,781,774
9,284,068
6,530,400
Total general fund
50,904,583
50,682,467
50,949,419
52,371,876
54,953,496
All other governmental funds
Nonspendable
-
3,380
34,488
-
-
Restricted
15,421,352
11,128,786
9,467,285
9,225,434
5,684,636
Committed
-
-
-
-
-
Assigned
8,134,163
8,930,312
7,273,590
5,449,265
-
Unassigned
(22,698,760)
(26,518,351)
(25,445,902)
(25,817,650)
(32,714,452)
Total all other governmental fund;
856,755
(6,455,873)
(8,670,539)
(11,142,951)
(27,029,816)
Total Fund Balances
$ 51,761,338
$ 44,226,594
$ 42,278,880
$ 41,228,925 $
27,923,680
Beginning in FY 2018/19, the General Fund and the Fire Special Revenue Fund were combined. 105
Fiscal Year
2019 2018 2017 2016 2015
$ 22,370,194
$ 20,416,604
$ 20,648,580
$ 13,946,845
$ 11,313,445
125,052
192,397
310,760
1,073,460
985,913
17,908,560
7,463,406
7,035,269
6,761,166
5,342,829
4,591,778
4,019,175
3,225,598
12,009,103
10,933,751
4,621,841
5,567,230
5,080,248
11,528,265
15,033,672
49,617,425
37,658,812
36,300,455
45,318,839
43,609,610
-
-
-
2,923,167
2,523,014
10,027,656
10,547,436
12,901,073
13,272,331
15,532,774
-
11,820,420
11,811,080
8,878,997
8,870,725
5,777,260
12,301,900
-
36,079
(26,585,290)
(27,535,988)
(23,280,361)
(15,873,763)
(13,324,985)
(16,557,634)
609,128
13,733,692
9,200,732
13,637,607
$ 33,059,791
$ 38,267,940
$ 50,034,147
$ 54,519,571
$ 57,247,217
1:
CITY OF YUCAIPA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2024
2023
2022
2021
2020
Revenues:
Taxes:
Property Taxes
$ 15,830,863
$ 14,702,749
$ 13,802,354
$ 13,283,544
$ 12,598,276
Sales and Use Taxes
5,529,736
5,488,377
5,299,433
4,600,872
3,751,828
Franchise Taxes
1,833,768
1,830,861
1,672,542
1,567,185
1,491,027
Documentary Transfer Tax
198,320
238,018
318,285
311,936
186,819
Other Taxes
179,225
30,037
23,658
22,299
22,379
License and Permits
1,883,453
2,117,419
1,375,320
987,628
736,865
Fines and Forfeitures
74,836
50,653
326,104
381,295
40,581
Charges for Services
14,393,805
10,961,115
8,991,482
4,490,771
3,386,200
Intergovernmental
19,543,854
17,116,881
17,905,890
19,719,637
13,565,747
Investment Income
2,747,790
341,513
(410,975)
365,311
1,056,327
Other
333,216
3,075,383
464,790
5,682,031
425,493
Total Revenue
62,548,866
55,953,006
49,768,883
51,412,509
37,261,542
Expenditures:
Current:
General Government
6,754,205
5,991,502
5,190,044
4,320,276
3,453,098
Community Development
1,372,355
871,119
1,388,086
1,192,242
797,221
Building and Safety
3,698,433
1,711,222
1,163,594
814,756
609,026
Public Works
6,840,164
6,865,091
5,207,567
4,499,705
4,880,501
Public Safety
20,601,964
18,702,370
17,143,688
15,876,283
15,972,579
Fire Protection Services
135,231
-
-
-
-
Community Service
5,801,175
4,409,368
3,302,618
1,626,246
2,499,404
Capital Outlay
9,249,681
14,824,775
14,376,331
9,933,302
14,185,824
Total Expenditures
54,453,208
53,375,447
47,771,928
38,262,810
42,397,653
Excess (Deficiency) of Revenues
over (under) Expenditures
8,095,658
2,577,559
1,996,955
13,149,699
(5,136,111)
Other Financing Sources (Uses)
Transfer In
10,061,861
14,895,832
15,137,307
10,663,705
19,552,583
Transfer Out
(10,622,775)
(15,525,677)
(16,084,307)
(10,873,705)
(19,552,583)
Total Other Financing Sources
(560,914)
(629,845)
(947,000)
(210,000)
-
Net Change in Fund Balance
7,534,744
1,947,714
1,049,955
12,939,699
(5,136,111)
Fund Balance, Beginning of Year
44,226,594
42,278,880
41,228,925
27,923,680
43,208,549
Fund Balance, End of the Year
$ 51,761,338
$ 44,226,594
$ 42,278,880
$ 41,228,925
$ 38,072,438
107
Fiscal Year
2019
2018
2017
2016
2015
$ 12,136,328
$ 11,616,465
$ 11,072,145
$ 10,411,588
$ 10,034,783
4,178,316
3,491,965
3,446,413
3,528,777
3,178,195
1,422,487
1,381,727
1,339,715
1,415, 951
1,427, 826
165,803
196,525
187,977
165,430
173,871
22,903
22,529
22,666
22,941
18,253
642,926
563,075
669,889
741,816
644,438
44,876
42,799
34,708
46,210
65,641
4,053,783
3,337,724
3,217,725
4,142,074
3,523,712
17,457,588
9,570,510
8,048,047
11,192,564
8,422,778
1,418,791
478,954
472,118
899,261
713,548
819,162
391,399
563,339
643,662
692,134
42,362,963
31,093,672
29,074,742
33,210,274
28,895,179
3,710,893
3,405,544
3,082,881
2,761,798
2,574,342
914,835
796,652
819,421
874,127
662,301
478,236
387,227
443,510
535,135
470,200
4,288,078
3,984,399
3,632,801
3,960,098
4,217,659
14,673,159
13,711,372
12,914,669
11,947,953
11,476,079
2,288,639
1,830,426
2,364,323
1,707,102
1,908,332
21,217,272
18,848,545
10,191,847
14,053,736
6,964,420
47,571,112
42,964,165
33,449,452
35,839,949
28,273,333
(5,208,149)
(11,870,493)
(4,374,710)
(2,629,675)
621,846
18,916,990
7,225,957
26,029,696
4,502,284
2,392,627
(18,916,990)
(7,121,671)
(26,140,410)
(4,600,255)
(2,607,627)
-
104,286
(110,714)
(97,971)
(215,000)
(5,208,149)
(11,766,207)
(4,485,424)
(2,727,646)
406,846
48,416,698
60,182,905
64,668,329
67,395,975
66,989,129
$ 43,208,549
$ 48,416,698
$ 60,182,905
$ 64,668,329
$ 67,395,975
108
CITY OF YUCAIPA
Assessed Value and Estimated Actual Value of Taxable Property by Major Type Last Ten Fiscal Years
Category
2024
2023
2022
2021
2020
Residental
$5,164,832,121
$4,800,460,936
$4,477,721,348
$4,290,661,031
$4,121,577,454
Commercial
455,798,465
420,932,556
392,826,501
384,136,677
359,691,461
Industrial
31,122,390
26,116,447
22,737,494
21,352,036
19,323,164
Irrigated
269,953
264,661
259,472
256,811
251,775
Dry Farm
2,530,583
2,480,965
2,432,318
3,068,142
3,363,591
Recreational
5,497,522
5,447,436
5,342,452
5,660,995
5,247,653
Institutional
7,111,812
5,581,027
10,279,542
16,166,803
12,156,160
Miscellaneous
15,956,167
15,875,804
15,862,094
16,814,925
17,107,033
Vacant Land
166,535,176
148,076,761
134,905,956
120,960,512
111,676,789
Unsecured
121,879,311
98,793,467
81,693,302
74,728,619
74,568,629
Total
$5,971,533,500
$5,524,030,060
$5,144,060,479
$4,933,806,551
$4,724,963,709
Total direct rate
Source:
HdL
0.23831 0.23987 0.23994 0.23996 0.24061
109
2019
2018
2017
2016
2015
$3,922,178,028
$3,753,392,419
$3,545,207,827
$3,358,340,145
$3,197,499,722
343,889,586
318,283,068
307,441,314
282,344,120
279,379,006
22,859,396
20,540,942
19,499,887
28,947,572
27,816,631
143,693
140,876
138,112
136,038
133,374
3,429,995
3,372,477
3,433,192
3,395,439
3,328,926
5,188,913
5,127,653
5,069,825
5,415,474
4,107,321
8,179,074
9,902,113
10,120,689
3,759,117
6,693,945
10,852,354
11,567,874
10,872,131
10,959,685
11,413,452
108,457,958
113,299,055
112,23 6,082
109,221,283
105,449,947
69,812,138
66,612,865
67,513,752
64,879,744
65,290,823
$4,494,991,135
$4,081,532,811
$3,867,398,617
$3,701,113,147
$4,302,239,342
0.22919
0.22923
0.22921
0.22914
0.22912
110
CITY OF YUCAIPA
Direct & Overlapping Property Tax Rates
(Rate Per $100 of Taxable Value)
Agency
2024
Basic Levy
1.00000
Redlands Unified School Bond 1993
0.03160
San Bernardino Community College Bond
0.04520
San Bernardino Valley Muni Water
0.12000
Total Direct & Overlapping Tax Rates
1.19680
City's Share of 1% Levy Per Prop 13
General Obligation Debt Rate
Total Direct Rate
Source:
HdL
2023
2022
1.00000
1.00000
0.02790
0.06620
0.04500
0.05340
0.13000
0.13000
1.20290
1.24960
2021
2020
1.00000
1.00000
0.03600
0.03390
0.06510
0.05620
0.14250
0.14250
1.24360
1.23260
0.22228 0.22228 0.22228 0.22228 0.22228
0 0 0 0 0
0.23831 0.23987 0.23994 0.23996 0.24061
2019
2018
2017
2016
2015
1.00000
1.00000
1.00000
1.00000
1.00000
0.03240
0.04940
0.05240
0.05670
0.05940
0.04070
0.03760
0.03500
0.04030
0.03930
0.15250
0.15250
0.16250
0.16250
0.16250
1.22560
1.23950
1.24990
1.25950
1.26120
0.22228
0.22228
0.22228
0.22228
0.22228
0 0
0 0
0 0.22919
0.22923
0.22921
0.22914
0.22912
112
CITY OF YUCAIPA
Principal Property Tax Payers
Current Year and Nine Years Ago
2024
Combined (Secured & Unsecured)
Total Assessed
Percent of Net
Taxpayer
Value
Rank
Assessed Value
SORENSON ENGINEERING INC
$ 36,317,150
1 0.61%
YVCC H LLC
31,648,391
2 0.53%
SUN LAKEVIEW MOBILE ESTATES LLC
24,709,500
3 0.41%
SNR 24 GOLDEN OAKS OWNER LLC
20,023,999
4 0.34%
CHAPMAN HEIGHTS YUCAIPA
15,768,706
5 0.26%
YUCAIPA VENTURE LLC
15,767,678
6 0.26%
ELLIS FAMILY TRUST
13,922,554
7 0.23%
CSL WILDWOOD PROPERTY LLC
13,890,983
8 0.23%
SPECTRUM PACIFIC WEST LLC
13,630,010
9 0.23%
JDP CH INVESTMENT LP
13,256,623
10 0.22%
STATER BROS MARKETS
GERALD S RUBIN
CALANDA REAL LP
PUTNAM FAMILY PARTNERSHIP
YUCAIPA VALLEY ACRES
VEDRES FAMILY INVESTMENT PTSHP
TOP TEN TOTAL
198,935,594
3.33%
CITY TOTAL
$ 5,971,533,500
Source:
HdL
2015
Combined (Secured & Unsecured)
Total Assessed
Value
$ 10,278,957
21,995,104
14,125,467
13,383,021
Percent of Net
Rank Assessed Value
8 0.28%
1 0.59%
2 0.38%
4 0.36%
13,416,622
3 0.36%
11,351,978
5 0.31%
11,265,240
6 0.30%
10,635,155
7 0.29%
8,555,054
9 0.23%
8,365,142
10 0.23%
123,371,740
3.33%
$ 3,701,113,147
113
CITY OF YUCAIPA
Property Tax Levies and Collections 1
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 z
Amount
of Levy
2024
$13,612,838
$13,511,026
99.25%
$499,180
$14,010,206
102.92%
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
102.35%
2017
9,600,087
9,431,090
98.24%
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%
NOTE:
1 The amounts presented include City property taxes and Redevelopment Agency increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed -through to other agencies.
The State of California dissolved the Redevelopment Agency effective 2012. Collections in subsequent years may include delinquent tax payments from multiple years which are not identified separately by the County of San Bernardino.
2 Subsequent years collections of prior years may include delinquent tax payments from multiple prior years which are not identified separately by the County of San Bernardino. Limitations exist within the County's tax system which impede the ability to identify prior tax year delinquent payments by assessment year.
Source:
San Bernardino County Auditor -Controller's Office
114
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 i Debt Per Capita'
2024
$ -
0.00% $ -
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% -
1 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.
115
CITY OF YUCAIPA
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year Ended
Former RDA Tax Percentage of Assessed
June 30
Allocation Bonds 1 Value 1 Per Capita 1
2024
$ - 0.00% $ -
2023
- 0.00% -
2022
- 0.00% -
2021
- 0.00% -
2020
- 0.00% -
2019
- 0.00% -
2018
- 0.00% -
2017
- 0.00% -
2016
- 0.00% -
2015
- 0.00% -
2014
- 0.00% -
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.
116
CITY OF YUCAIPA
Direct and Overlapping Debt
June 30, 2024
2023-2024 Assessed Valuation: $ 5,971,519,136
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
06/30/24
Overlapping Debt
5.899%
$ 905,105,266
$ 53,392,160
0.063%
48,943,512
30,834
100.000%
$ -
$ -
100.000%
9,935,000
9,935,000
100.000%
830,000
830,000
100.000%
1,811,002
1,811,002
100.000%
8,292,000
8,292,000
$ 974,916,780 $ 74,290,996
1.875% $ 131,565,000 $ 2,466,844
1.875% 37,295,000 699,281
0.063% 21,210,000 13,362
82.967% 43,237,273 35,872,668
233,307,273 39,052,155
100.000% 6,110,000 6,110,000
100.000% $ - $ -
I 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 2023-24 Assessed Valuation:
DirectDebt............................................................... 0.00 % Total Direct and Overlapping Tax and Assessment Debt.......... 1.24 % Combined Total Debt .................................................... 2.00 % Ratios to Redeveloument Successor Aeencv Incremental Valuation ($404,687,932):
Total Overlapping Tax Increment Debt ................................ 1.51 % 117
THIS PAGE INTENTIONALLY LEFT BLANK
118
CITY OF YUCAIPA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2024 2023 2022
Assessed Valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to the limit
General obligation bonds
Legal debt margin 223,932,506 207,151,127 192,902,268 185,017,746 177,186,139 Total debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 2021 2020
$ 5,971,533,500
$ 5,524,030,060
$ 5,144,060,479
$ 4,933,806,551
$ 4,724,963,709
25%
25%
25%
25%
25%
1,492,883,375
1,381,007,515
1,286,015,120
1,233,451,638
1,181,240,927
15%
15%
15%
15%
15%
223,932,506
207,151,127
192,902,268
185,017,746
177,186,139
NOTE:
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision wl 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
119
2019
2018
2017
2016
2015
$ 4,494,991,135
$ 4,302,239,342
4,081,532,811
3,867,398,617
3,701,113,147
25%
25%
25%
25%
25%
1,123,747,784
1,075,559,836
1,020,383,203
966,849,654
925,278,287
15%
15%
15%
15%
15%
168,562,168
161,333,975
153,057,480
145,027,448
138,791,743
168,562,168 161,333,975 153,057,480 145,027,448 138,791,743
0.00% 0.00% 0.00% 0.00% 0.00%
ien assessed valuatio
3t recent change i
full valuatio
it located within tl
120
Fiscal Year
Ended
June 30
CITY OF YUCAIPA
Pledged Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Former RDA Tax
Increment Principal
Debt Service
Interest Coverage
2024 $ - $ 225,000 $
327,501 $ -
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. 121
CITY OF YUCAIPA
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Income
Calendar Year
Population
(In Thousands)
2023
53,810
$ 1,999,105
2022
53,991
$ 1,783,022
2021
54,494
1,722,373
2020
55,634
1,620,848
2019
55,712
1,542,724
2018
54,844
1,407,956
2017
54,651
1,338,730
2016
54,324
1,347,721
2015
53,779
1,367,950
2014
52,598
1,353,662
2013
52,654
1,365,950
Per Capita
Personal Income
Unemployment
Rate
$ 37,151
3.70%
$ 33,024
3.40%
31,606
5.70%
29,134
7.90%
27,691
3.20%
25,672
3.40%
24,495
4.00%
24,808
5.80%
25,436
6.60%
25,736
8.20%
25,942
6.60%
Sources:
State Department of Finance, HdL, State of California Employment Development Department 122
CITY OF YUCAIPA
Principal Employers
Current Year and Nine Years Ago
2024* 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. 123
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
2024 2023 2022 2021 2020
0.25 0.25
0.00 0.00
0.00 5.35
3.15 5.05
3.55 4.00
15.00 18.00
13.60 10.60
10.10 1.00
1.00 1.00
1.00 1.00
3.00 3.00
2.00 2.00
2.31 5.50
5.50 5.50
5.50 4.50
8.50 6.75
5.25 5.25
5.25 10.00
9.25 9.75
8.75 8.75
4.75 5.25
4.25 3.25
3.50 5.25
5.25 3.25
4.25 3.00
1.00 0.90
0.00 0.00
0.00 11.80
14.33 8.78
8.00 7.00
1.00 1.00
0.00 0.00
0.00 6.30
7.80 6.85
6.38 4.40
0.30 0.38
0.52 0.27
0.14 1.00
0.20 0.20
0.20 0.06
80.00 82.00
66.00 59.00
54.00 124
CITY OF YUCAIPA
Operating Indicators
by Function
Last Five Fiscal Years
Fiscal Year
Function
2024
2023
2022
2021
2020
Building and Safety:
Building Permits Issued
2,235
2,772
2,210
1,885
1,376
No. of New Dwelling Units
328
328
233
119
17 Parks and recreation:
Community center attendance
10,752
10,812
14,139
7,112
16,897
STARS
719
997
1,093
1,649
12,269
Camps
634
730
683
433
940
Aquatics
6,002
4,402
3,570
2,440
1,275
Community Center Classes
2,375
1,944
1,061
715
4,218
Scherer Center Classes
6,837
5,612
5,384
1,153
3,742
Administration
New Business Licenses
402
587
570
428
422
Renewed Business Licenses
1,725
1,697
1,452
1,564
1,547
Sources:
City of Yucaipa
125
CITY OF YUCAIPA
Capital Asset Statistics
by Function
Last Five Fiscal Years
Fiscal Year
Function
2024
2023
2022
2021
2020
Police:
Stations
1 1
1 1
1 Sub -stations
Fire:
Fire Stations
3 3
3 3
3 Public Works
Streets (miles)
229.05
229.05
227.82
227.82
227.82
Traffic signals (city -owned)
32.5 32.5
32.5 32.5
31.5 Roundabouts
4 4
4 4
4 Parks and Recreation:
Parks (acreage)
534
534
534
534
534
Community Centers
2 2
2 2
2 Performing Arts Centers
1 1
1 1
1 Sources:
City of Yucaipa
126
ATTACHMENT 3
....................
Van Lant&
Fa
nkhanel LLP
Independent Auditor's Report on Compliance for the U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds Program (CSLFRF) Requirements for an Alternative CSLFRF Compliance Examination Engagement City Council
City of Yucaipa
Yucaipa, California
We have examined the City of Yucaipa's (the City) compliance with the compliance requirements "activities allowed or unallowed" and "allowable cost/cost principles" (the specified requirements) as described in Part IV "Requirements for an Alternative Compliance Examination Engagement for Recipients That Would Otherwise be Required to Undergo a Single Audit or Program -Specific Audit as a Result of Receiving Coronavirus State and Local Fiscal Recovery Funds" of the CSLFRF section of the 2024 OMB Compliance Supplement (referred to herein as "Requirements for an Alternative CSLFRF Compliance Examination Engagement") during the year ended June 30, 2024. Management of the City is responsible for its compliance with the specified requirements. Our responsibility is to express an opinion on the City's compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the AICPA; the standards applicable to attestation engagements contained in Government Auditing Standards, issued by the Comptroller General of the United States; and in the "Requirements for an Alternative CSLFRF Compliance Examination Engagement." Those standards and requirements require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.
Our examination does not provide a legal determination on the City's compliance with specified requirements.
In our opinion, the City of Yucaipa complied, in all material respects, with the specified requirements referenced above during the year ended June 30, 2024.
I
Van Lant & Fankhanel, LLP
M70 Technology Drive. Suite 105 A
Murrieta. CA 92563
909.856.6879
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we are required to report all deficiencies that are considered to be significant deficiencies or material weaknesses in internal control; fraud, and noncompliance with provisions of laws, regulations, contracts, or grant agreements that have a material effect on City's compliance with the specified requirements and any other instances that warrant the attention of those charged with governance. We are also required to obtain and report the views of responsible officials concerning the findings, conclusions, and recommendations, as well as any planned corrective actions. We performed our examination to express an opinion on the City's compliance with the specified requirements and not for the purpose of expressing an opinion on the internal control over the specified requirements or on compliance and other matters; accordingly, we express no such opinions. The results of our tests disclosed no matters that are required to be reported under Government Auditing Standards.
Intended Purpose
The purpose of this examination report is solely to express an opinion on whether the City complied, in all material respects with the specified requirements referenced above during the year ended June 30, 2024. Accordingly, this report is not suitable for any other purpose. / v �� 4- Ya- 444ndi 11
Murrieta, CA
March 31, 2025
I%