CITY 01:
Item No. 8
STAFF REPORT
DATE: March 23, 2026
TO: Honorable Mayor and City Council
FROM: Dr. Sean M. Moore, City Manager
PREPARED BY: Phil White, Director of Finance
SUBJECT: June 30, 2025 Annual Comprehensive Financial Report RECOMMENDATION:
That the City Council receive and file the June 30, 2025 Annual Comprehensive Financial Report.
BACKGROUND/DISCUSSION:
We are proud to present the City of Yucaipa's June 30, 2025, Annual Comprehensive Financial Report (ACFR), a document that shows how the City collected and spent its money during the fiscal year ending June 30, 2025 (FY25). 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 for the period that spans July 1 through June 30.
The auditor's opinion rendered on the FY25 ACFR 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 ($42.6 million) exceeding liabilities ($2.7 million) and deferred outflows ($0.7 million) resulting in positive equity (fund balance) of $39.2 million. However, $10.5 million is categorized as "nonspendable" fund balance and relates primarily to interfund loans to the Development Impact Fee (DIF) Capital Projects Fund, The DIF Fund reports a deficit $15 million fund balance at the end of the year.
The Public Safety Fund reports a $11.7 million fund balance. Overall, Yucaipa continues to report a strong balance sheet and added $3.6 million citywide to its fund balance. Unassigned fund balance is a key indicator of a City's financial health and ability to maneuver in difficult times.
The General Fund unassigned fund balance is $22.6 million, an increase in FY25 of $4.4 million.
This is a positive result; however the City continues to have areas of concern on its balance sheet.
The primary area to monitor on the balance sheet continues to be the DIF Fund and the interfund loan balance. The balance of the interfund loans as of June 30, 2025 is $12.2 million, down from $19.0 million a year ago. The collectability of the interfund loans is evaluated continuously during the City's multi -year payback period. Footnote 3 (pg 38) further discusses interfund receivables, payables and transfers.
FY25 is also the first year that the Public Safety Fund is separately reported. The purpose of separate reporting is to increase financial transparency to Yucaipa's public safety activities (police, fire protection, paramedic and code enforcement). Accumulated resources in the Public Safety Fund include resources Committed to fire protection services and resources Assigned to public safety.
Condensed governmental fund balance sheet information is included below. This information is compiled based on the audited balance sheet on pages 15-16 in the ACFR.
Other
Total
Public Safety
Development
General Fund
Governmental
Governmental
Fund
Impact Fees
Funds
Funds
Assets
Cash and Investments
S 20.311.130
S 10.547.804
S 2.042.959
S 25.115.370
S 58.017.263
Advances to Other Funds
10.444,246
1.784,703
-
-
12.228.949
Other Assets
11.847.544
816.079
374,639
7,077.055
S 20.115.317
Total Assets
S 42.602.920
S 13.148.586
S 2.417.598
S 32.192.425
S 90.361,529
Liabilities and Deferred Inflows
Advances from Other Funds S S - S 10,591.867 S 1.637.082 $ 12.228,949 Other Liabilities 2.759,670 1.346.486 6,871.100 10.774,641 21.751,897 Deferred Inflows 679,390 125.256 - 250.748 1.055.374
Total Liabilities and DI 3.439,060 1.471.722 17.462.967 12.662.471 35.036.220 Fund Balance
Nonspendable
10,525,684
10.525,684
Restricted
-
13,678,244
13.678,244
Committed
6.000.000
10,900.846
-
16.900.846
Assigned
-
776.018
8.174.645
8,950.663
Unassigned
22,638.176
-
(15,045,369) (2,322.935)
5,269.872
Total Fund Balance
39.163.860
11,676.864
(15.045.369) 19.529,954
55,325,309
Total L. DI & FB
S 42,602,920
S 13,148,586
S 2.417.598 S 32,192,425 S
90,361.529
Inflows and outflows during the period are presented on the statement of revenues, expenditures and changes in fund balances. The net change in the General Fund was a deficit of $2.4 million, while the change in the Public Safety Fund was a increase of $525 thousand. The DIF capital project fund added $5.7 million to its fund balance bringing the accumulated deficit down to $15 million as stated above.
Condensed governmental fund inflow and outflow information is included below. This information is compiled based on pages 19-20 in the ACFR.
Revenue
Property taxes
Sales taxes
Other
Total Revenue
Expenditures
Operating
Capital
Total Expenditures
Public Safety Development Other Total
General Fund Fund Impact Fees Governmental Governmental Funds Funds
S 10.255.193 $ 6,273.816 S - S S 16,529.009
7,317,642 - 7.317.642
21,303,091 1,651.662 3.419.821 'S 8,846.922 35.221.496
38.875,926 7,925,478 3,419.821 8.846.922 59,068,147
17,513.354 23,264.05" 68.392 2.965,197 43.810.996
199.110 - 4.406.018 5,616.568 10,221,696
17.712.464 23.264.053 4,474.410 8,581.765 54.032.692
Other Financing Sources (Uses)
Transfers In 140,060 15.865.716 6,971.178 5,021,752 27.998.706 Transfers Out (23,737.200) (2,240) (56.597) (5,674.153) (29.470,190) TotalOFS(U) (23.597,140) 15,863.476 6.914.581 (652.401) (1,471.484) Net Change in Fund Balance $ (2,433,678) $ 524,901 $ 5,859,992 $ (387,244) $ 3,563,971 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 accounting funds with accumulated deficits. The notes are an integral part of the financial statements.
The ACFR reports actual balances as opposed to the 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 and Public Safety Fund budget -to -actual comparisons are included on pages 62 and 63 of the ACFR.
General Fund revenues exceeded budget estimates by 7% and $2.6 million. The result is on the high side of historical trends between 4% and 6% greater than estimated. A significant portion of the excess is due to the implementation of Measure S during the final quarter of FY25. 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 FY25, actuals were $4.7 million less than budget. Yucaipa's historical average for actual expenditures in comparison to budget is between 20% and 30%. The FY25 result continues to reflect a combination of tighter budgets and delayed programming. The adopted budget deficit (outflows exceeding inflows) for the General Fund was $4.4 million in FY25. The actual result was a $2.4 million deficit.
The external auditor's required communication letter is included as Attachment 1 to this staff report. The ACFR, the internal control report, and the appropriations limit report are included as Attachments 2, 3 & 4 respectively.
FISCAL IMPACT:
The recommendation does not result in a fiscal impact.
Attachments:
1. Required Communication Letter — FY25
2. Annual Comprehensive Financial Report — FY25
3. Internal Control Report — FY25
4. Appropriations Limit Report — FY25
ATTACHMENT 1
Van Lant&
VLF Fankhanel, LLP
Certified Public Accountants
March 16, 2026
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, 2025.
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 May 5, 2025. 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 16, 2026.
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,
J�v 4,t 4- yo-JAoa, i0
3 ATTACHMENT 2
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CITY OF YUCAIPA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30
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CITY OF YUCAIPA, CALIFORNIA
/_101►01_1welf]►vi1:2N4:14kiM1v/:va1►/_1 I,M/_1wN4101:41 For the Fiscal Year Ended June 30, 2025
Prepared by
Finance Department
City of Yucaipa
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
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 - 54
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability 56 Schedule of Plan Contributions
57 Schedule of Changes in Total OPEB Liability and Related Ratios 59 - 60
Schedule of OPEB Plan Contributions
61 Budgetary Comparison Schedule — General Fund
62 Budgetary Comparison Schedule — Public Safety Special Revenue Fund 63 Budgetary Comparison Schedule — Miscellaneous Special Revenue Fund 64 Notes to Required Supplementary Information
65 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
67 Facilities Construction Capital Projects Fund
68 Miscellaneous Capital Projects Fund
69 Non -Major Governmental Funds
Combining Balance Sheet
71 - 74
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 75 - 78
City of Yucaipa
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
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
79 Measure I Special Revenue Fund
80 Energy Independence Program Special Revenue Fund
81 State COPs Grant Special Revenue Fund
82 Office of Traffic and Safety Special Revenue Fund
83 LLMD Special Revenue Fund
84 Housing Authority Special Revenue Fund
85 PEG Video Special Revenue Fund
86 Capital Projects Funds:
CDBG Capital Projects Fund
87 Air Quality Improvement Capital Projects Fund
88 Pool Capital Replacement Capital Projects Fund
89 Street Maintenance Capital Projects Fund
90 TDA Article 3 Capital Projects Fund
91 Low Water Crossings Capital Projects Fund
92 Internal Services Funds:
Combining Statement of Net Position
94 Combining Statement of Revenues, Expenses and Changes in Net Position 95 Combining Statement of Cash Flows
96 Custodial Funds:
Combining Statement of Fiduciary Net Position
98 Combining Statement of Changes in Fiduciary Net Position 99 STATISTICAL SECTION
Statistics
102
Net Position by Component
103 - 104
Changes in Net Position
105 - 106
Fund Balances of Governmental Funds
107 - 108
Changes in Governmental Fund Balances
109 - 110
Assessed Value and Estimated Actual Value of Taxable Property by Major Type 111 - 112
Direct and Overlapping Property Tax Rates
113 - 114
Principal Property Tax Payers
115
Property Tax Levies and Collections
116
Ratios of Outstanding Debt by Type
117
Ratios of General Bonded Debt Outstanding
118
Direct and Overlapping Debt
119
Legal Debt Margin Information
121 - 122
Pledged Revenue Coverage
123
Demographic and Economic Statistics
124
Principal Employers
125
City Employees by Function
126
Operating Indicators by Function
127
Capital Asset Statistics by Function
128
INTRODUCTORY SECTION
CITY OF
March 16, 2026
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 2024-25 Annual Comprehensive Financial Report (ACFR), a document that shows how the City collected and spent its money during the fiscal year ending June 30, 2025. 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.
You may use the information in the ACFR to make good decisions about budgets and projects.
Citizens may use it to learn how their tax 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 big 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.
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 ♦ FAX 909/790-9203 ♦ e-mail: [email protected]
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 (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
The City of Yucaipa maintains a stable economic foundation characterized by a resilient residential base and a healthy median household income of approximately $92,400. While the local unemployment rate saw a slight year -over -year increase to 5.1%, consumer confidence remained high, as evidenced by the exceptional performance of Measure S. The 1% local sales tax significantly outpaced expectations, reaching nearly $9 million against an original projection of $6 million. This surplus has provided a vital fiscal bridge, helping to offset a structural deficit largely driven by an annual escalation in public safety contract costs and growing maintenance requirements.
To secure long-term sustainability, the City remains committed to identifying robust budget - balancing strategies that mitigate fiscal risk and protect the General Fund. The Yucaipa Freeway Corridor Specific Plan has been a critical component of that, though its future is uncertain. The City continues to search for new revenue and pursue better cost recovery.
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 submit d�
Dr. Sean M. Moore, AICP, DPA, MPA, MAPS
ICMA-CM
City Manager
City of Yucaipa
34272 Yucaipa Boulevard, Yucaipa, CA 92399-9950
909/797-2489 ♦ FAX 909/790-9203 ♦ e-mail: [email protected] IWV
City of Yucaipa
List of Principal Officials
June 30, 2025
City Council
Mayor District 5
Jon Thorp
Mayor Pro Tern District 2
Chris Venable
Council Member District 1
Bob Miller
Council Member District 3
Judy Woolsey
Council Member District 4
Justin Beaver
Administration
Interim City Manager
Jennifer Crawford
City Attorney
Steven Graham
Department Heads
Captain of Police
Brandon Wiebeld
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
Organization Chart
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FINANCIAL SECTION
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, 2025, 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, 2025, 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
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 16, 2026, 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 16, 2026
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, 2025. 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 $6.6 million or 2.7% to $248.3 million as a result of operations.
➢ The total revenues from all sources were approximately $57.7 million. The total cost of all City programs was approximately $51.1 million. Depreciation expense of $5.7 million is included in this amount.
➢ The General Fund reported revenues and transfers -in of $39.0 million and expenditures and transfers -out of $41.4 million for a decrease in fund balance of $2.4 million. ➢ At the end of Fiscal Year (FY) 2024-2025, the Unassigned Fund Balance in the General Fund was approximately $22.6 million, or 55% of General Fund outflows. This represents an increase of $4.3 million, or 23% in Unassigned Fund Balance. ➢ The June 30, 2025 Committed Fund Balance in the General Fund was $6 million and includes the following:
1. Committed Reserve for Emergency Operating Contingency $ 5,000,000
2. Committed Reserve for Economic Stabilization 1,000,000 Total 6,000.000
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 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. 4 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 Internal Service Funds to account for its self-insurance activities and its information technology services. 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.
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 $248.3 million as of June 30, 2025. This represents an increase from the previous year of $6.6 5 million. See Table 1, below, for a comparative analysis of net position between the fiscal years ended June 30, 2025 and June 30, 2024.
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 Liabilities
Long Term LiabMes
Total Liabilities
Deferred Wows of Resources
Net Position:
Net 1m,est rent in Capital Assets
Restricted
[;restricted
Total Net Position
2025
2024
S 72,030,087
S 70,501.622
198,327,145
193,941,766
270,357,232
264,443,388
3,112,096
3,942,020
13,479,030
15,438,540
10,467,080
9,961.196
23,946,110
25:399,736
1,213,070
1,277,929
198,327,145
193,941,766
11,668,294
13,841,326
38,314,709
33:924:651
S 248,310,148 S241.707,743
Current assets increased 2.2% and each component of current assets was comparable to the previous year. Current liabilities decreased $2 million primarily due to the return of a $4 million grant deposit partially offset with accounts payable increasing $3 million. A large portion of the City's net position, $198.3 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, the book value of these assets is not available for spending. $11.7 million, or 4.7% 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 $38.3 million, is considered "unrestricted" and may be used to meet the government's ongoing obligations.
Yucaipa's primary general revenues are property tax and sales tax and both continue to be stable.
Property tax revenue of $15.4 million was recognized which was flat with the previous year and the revenue stream continues to be a dependable source of financial resources. Regionally, sales tax was forecasted to flatten during the year, however voters passed Measure S, a 1% transaction and use tax during the year. Measure S became effective April 1, 2025 and added to the sales tax 2 revenue stream. In total, Yucaipa's recognized $7.3 million in sales and use tax, an increase of 9%. Capital Grants and contributions are non -recurring and a significant component of the City's funding of infrastructure. This program revenue stream decreased $3.0 million to $4.9 million.
Charges for services decreased $5.2 million and Operating grants and contributions increased $0.6 million during the year. Overall, revenues decreased $4.0 million.
Table 2
Revenues by Source - Governmental Activities
For the Fiscal Year Ended
June 30,
2025
June 30,
2024
Amount
❑/❑ of Total
Amount
❑/❑ of Total
Taxes
Property
$15,409,687
26.7❑/❑
$15,830,863
25.7%
Sales and Use
7,317,642
12.7%
5,529,736
9.0❑/❑
Franchise Fees
3,868,502
6.7%
1,833,767
3.0❑/❑
Documentary Transfer
327,887
0.6%
198,320
0.3%
Other Taxes
235,146
0.4%
179,225
0.3%
Vehicle License Fees
7,450,640
12.9%
6,953,493
11.3%
Investment Income
1,736,594
3.0%
1,737,071
2.8%
Miscellaneous
64,729
0.1%
332,144
0.5%
Charges for Services
12,067,566
20.9%
17,363,888
28.2%
Operating Grants and Contributions
4,358,358
7.6%
3,778,818
6.1❑/❑
Capital Grants and Contributions
4,878,792
8.5%
7,931,320
12.9❑/❑
Total
$57.715,543
100%
$61,668,645
100%
The following condensed summary of activities reflects that net position increased by approximately $6.6 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 $2.6 million to $24.1 million. Community services also continued to grow, adding $1.1 million in costs as events were expanded and school -partnership programs continued to expand. Community development costs were flat adding $0.1 million. Public works, building and safety, and general government each had cost reductions in 2025. Total expenses decreased $2.3 million to $51.1 million
Table 3
7 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 Income,.Misc
Total Revenues
Expenses
Public Safer-
Public Works
General Government
Community Sm ices
Community Development
Building and Safety
Total Expenses
Increase in Net Position
Beginning tiet Position
Ending het Position
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
2025
$ 12,067,566
4,358,358
4,878,792
15,409,687
7.317,642
4.431.535
7,450,640
2024
$ 19,070,733
3,778,818
7,931,320
15,830,863
5,529,736
2,211,312
6,953,493
1,801,323 362,370
57,715,543 61,669,645
24,147,874
11,270,841
5,071,592
7,159,055
10704,464
1,759,312
51,113,138
6,602,405
241,707,743
$ 248,310.148
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
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 $55.3 million, an increase of $3.6 million in comparison with the prior year. The General Fund has a fund balance of $39.2 million and the Public Safety Fund has a fund balance of $11.7 million, while all other governmental funds combined have a fund balance totaling ($4.4 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, 2025, the unassigned fund balance of the General Fund is $22.6 million. Included in the $6 million committed fund balance is a $5 million emergency contingency and a $1 million economic stabilization reserve.
The General Fund also reports $10.5 million in nonspendable fund balance related to interfund advances bringing the total fund balance to $39.2 million as of June 30, 2025.
The General Fund Fund Balance decreased by $2.4 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 $36.8 million. The General Fund revenues exceeded the estimates as actual inflows of $39.0 million exceeded budget by $2.2 million.
2024/25 2024/25
Actual to
Description
Budget
Actual
Variance
Budget %
Property Tax
$ 9,646,000
$10,255,193
$ 609,193
106.3%
Sales Tax
6,105,327
7,317,642
1,212,315
119.9%
Charges for Services
7,495,463
6,600,202
(895,261)
88.1%
Other Taxes
4,213.000
4357,554
144,554
103.4%
Intergovenimental
7,240,000
7,671,242
431,242
106.0%
Licenses & Permits
1,574A14
IA05,945
(168,469)
89.3%
Investment Income
-
1,216.875
1,216,875
NIA
Miscellaneous
38,000
51,273
13273
134.9%
Transfers In 506,941 140.060 (366,881) 27.6%
36.819145 39.015M6 1196.841 106.0%
Budgeted expenditures in the General Fund were approximately $22.4 million. During this fiscal year, public safety activities and revenues were carved out of the General Fund and a Public Safety Special Revenue Fund was created. The General Fund's contribution to the Public Safety Fund is accounted for as a transfer and actual transfers -out totaled $23.7 million. Actual outflows experienced in the General Fund were approximately $41.4 million during the year. The City's adopted budgeted deficit of $1.8 million in the General Fund resulted in an actual $2.4 million deficit result.
Public Safely pecial Revenue Fund:
The Public Safety Special Revenue Fund accounts for police, fire, paramedic and code enforcement activity. Significant inflows include restricted special assessment revenue and committed property tax revenue. Actual inflows were $23.8 million and actual outflows were $23.3 million.
9 Miscellaneous Special Revenue Fund:
The Miscellaneous Special Revenue Fund primarily accounts for grant funding restricted for specific purposes. Actual inflows of $395 thousand resulted from primarily grant -funded activities. Similarly actual expenditures of $193 thousand were incurred. Fund balance increased by $202 thousand.
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 $5.9 million to bring the Fund Balance deficit to $(15.0) million. Significant interfund advances payable 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 remained flat at $8.2 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 $176 thousand.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. As of June 30, 2025 the City's investment in capital assets is valued at $ l 98 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 4.4 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 $ 651,022,406
Infiastructure
Buildings and Improvements
Equipment 1 Vehicles
C onsti-uction-in-Progress
Total Capital Assets
89,762,742
6,784,666
1,686,305
35,071,026
5 198.327.145
Long-term Debt. As of June 30, 2025, the City had no debt outstanding. Long-term 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, 2025
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
$ 59,310,030
968,852
3,987,506
418,002
2,238,983
4,776,951
182,906
146,857
100,093,432
98,233,713
270,357,232
297,214
2,814,882
3,112,096
9,946,657
542,804
1,015,457
1,974,112
211,034
40,894
633,103
350,379
7,139,777
2,091,893
23,946,110
179,222
934,700
99,148
1,213,070
198,327,145
1,045,674
5,277,305
521,669
4,823,646
38,314,709
$ 248,310,148
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, 2025
Net(Expense)
Revenue and
Change in
Program Revenues
Net Position
Charges
Operating
Capital
for
Grants and
Grants and
Governmental
Expenses
Services
Contributions
Contributions
Activities
$ 5,071,592
$ 1,378,609
$ -
$
$ (3,692,983)
1,704,464
201,284
583,301
(919,879)
1,759,312
1,561,214
-
(198,098)
11,270,841
3,237,208
2,729,209
4,432,083
(872,341)
24,147,874
1,500,693
1,045,848
107,087
(21,494,246)
7,159,055
4,188,558
-
339,622
(2,630,875)
$ 51,113,138
$ 12,067,566
$ 4,358,358
$ 4,878,792
(29,808,422)
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. 15,409,687
7,317,642
3,868,502
327,887
235,146
7,450,640
1,736,594
64,729
36,410,827
6,602,405
241,707,743
$ 248,310,148
14 City of Yucaipa
Balance Sheet
Governmental Funds
June 30, 2025
Capital
Special Revenue
Projects
Development
Impact
General
Public Safety
Miscellaneous
Fees
ASSETS
Cash and Investments
$ 19,342,278
$ 10,547,804
$ 2,977,717
$ 2,042,959
Restricted Cash and Investments
968,852
-
-
-
Receivables:
Accounts
2,093,865
669,323
6,238
192,806
Interest
338,939
65,570
98 7,413
Notes and Loans
84,541
-
-
-
Leases
182,906
-
-
Due From Other Governments
1,396,515
81,186
174,420
Due From Other Funds
7,669,340
-
-
Advances to Other Funds
10,444,246
1,784,703
Prepaid Items
81,438
-
-
-
Total Assets
$ 42,602,920
$ 13,148,586
$ 2,984,053
$ 2,417,598
LIABILITIES
Accounts Payable
$ 1,206,908
$ 1,311,345
$ 7,802
$ 249,288
Accrued Liabilities
503,885
20,141
-
-
Deposits Payable
968,852
-
45,569
336
Due to Other Funds
-
-
-
6,621,476
Unearned Revenue
80,025
15,000
1,879,087
-
Advances From Other Funds
-
-
-
10,591,867
Total Liabilities
2,759,670
1,346,486
1,932,458
17,462,967
DEFERRED INFLOWS OF RESOURCES
Lease Related 179,222 -
Unavailable Revenues 500,168 125,236
Total Deferred Inflows of Resources 679,390 125,236
FUND BALANCES
Nonspendable 10,525,684 -
Restricted - - 1,051,595
Committed 6,000,000 10,900,846 -
Assigned - 776,018
Unassigned 22,638,176 - (15,045,369)
Total Fund Balances 39,163,860 11,676,864 1,051,595 (15,045,369) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 42,602,920 $ 13,148,586 $ 2,984,053 $ 2,417,598 The accompanying notes are an integral part of this statement. 15 Capital Projects
Total
Facilities Non -Major Governmental
Construction Miscellaneous Funds Funds
$ 2,936,694 $ 5,959,325 $ 13,241,634 $ 57,048,411
- - - 968,852
- 12,500 1,012,774 3,987,506
314 924 3,935 417,193
4,500,000 - 192,410 4,776,951
- - - 182,906
- 44,523 542,339 2,238,983
761,000 - - 8,430,340
- 12,228,949
- - - 81,438
$ 8,198,008 $ 6,017,272 $ 14,993,092 $ 90,361,529
$ 23,363 $ 4,507,887 $ 2,482,591 $ 9,789,184
- - 18,778 542,804
700 - 1,015,457
791,584 1,017,280 8,430,340
- - 1,974,112
1,637,082 12,228,949
23,363 5,300,171 5,155,731 33,980,846
- - 179,222
25,793 224,955 876,152
25,793 224,955 1,055,374
- - 10,525,684
691,308 11,935,341 13,678,244
- - - 16,900,846
8,174,645 8,950,663
- (2,322,935) 5,269,872
8,174,645 691,308 9,612,406 55,325,309
$ 8,198,008 $ 6,017,272 $ 14,993,092 $ 90,361,529
16 City of Yucaipa
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position
June 30, 2025
Fund balances of governmental funds $ 55,325,309
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 100,093,432
Capital Assets Being Depreciated 285,250,573
Accumulated Depreciation (187,016,860)
Long-term debt obligations are not due and payable in the current period and, therefore, are not reported in the funds:
Compensated Absences (844,137)
Net Pension Liability (7,139,777)
Total OPEB Liability (2,132,787)
Amounts for deferred inflows and deferred outflows related to the City's Pension and OPEB Liabilities are not reported in the funds:
Deferred Outflows Related to Pensions
2,814,882
Deferred Inflows Related to Pensions
(99,148)
Deferred Outflows Related to OPEB
297,214
Deferred Inflows Related to OPEB
(934,700)
The internal service fund is used by management to charge costs of activities 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. 1,819,995 Other long-term assets are not available to pay for current -period expenditures and, therefore, are deferred in the funds. 876,152
Net position of governmental activities $ 248,310,148
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, 2025
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
Paramedic Services
Community Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning, as previously reported
Change within financial reporting entity (new fund)
Fund Balances, Beginning, as adjusted
Capital
Special Revenue
Projects
Development
Impact
General
Public Safety
Miscellaneous
Fees
$ 10,255,193
$ 6,273,816
$
$
7,317,642
-
3,794,521
327,887
235,146
1,405,945
51,120
-
15,814
6,600,202
330,782
74,119
1,996,790
7,671,242
121,667
205,862
1,283,039
1,216,875
608,282
40,693
139,992
153
590,931
1,127
-
38,875,926
7,925,478
337,615
3,419,821
3,223,907
-
72,502
-
1,579,024
-
1,759,312
-
4,026,869
-
-
68,392
-
15,789,988
18,103
-
5, 778,121
-
-
1,695,944
6,924,242
-
-
199,110
102,610
4,406,018
17,712,464
23,264,053
193,215
4,474,410
21,163,462 (15,338,575) 144,400 (1,054,589)
140,060
15,865,716
57,569
6,971,178
(23,737,200)
(2,240)
-
(56,597)
(23,597,140)
15,863,476
57,569
6,914,581
(2,433,678)
524,901
201,969
5,859,992
50,904,583
-
849,626
(20,905,361)
(9,307,045)
11,151,963
-
41,597,538
11,151,963
849,626
(20,905,361)
Fund Balances, End of Year $ 39,163,860 $ 11,676,864 $ 1,051,595 $ (15,045,369) 19 Capital Projects
Total
Facilities Non -Major Governmental
Construction Miscellaneous Funds Funds
$
$
$
$ 16,529,009
7,317,642
-
73,981
3,868,502
-
-
327,887
-
235,146
-
-
-
1,405,945
-
-
-
66,934
130,382
1,121,801
10,254,076
123,594
5,868,448
15,273,852
396,419
197,708
533,426
3,133,395
-
-
63,548
655,759
396,419
451,684
7,661,204
59,068,147
-
-
42,164
3,338,573
16,423
1,595,447
-
-
-
1,759,312
166,717
2,983
2,547,133
6,812,094
-
-
99,172
15,907,263
-
5,778,121
1,695,944
-
-
-
6,924,242
23,085
401,890
5,088,983
10,221,696
189,802
404,873
7,793,875
54,032,692
206,617
46,811
(132,671)
5,035,455
-
166,135
4,798,048
27,998,706
(166,135)
(37,102)
(5,470,916)
(29,470,190)
(166,135)
129,033
(672,868)
(1,471,484)
40,482
175,844
(805,539)
3,563,971
8,134,163
515,464
12,262,863
51,761,338
-
-
(1,844,918)
8,134,163
515,464
10,417,945
51,761,338
$ 8,174,645 $ 691,308 $ 9,612,406 $ 55,325,309
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, 2025
Net change in fund balances - total governmental funds $ 3,563,971 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 10,202,719
Depreciation (5,708,461)
Disposals (108,879)
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. 765,058
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. This is the net change in unavailable revenue for the current period. (1,352,604) 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
(751,155)
Deferred Inflows Related to Pensions
117,046
Deferred Outflows Related to OPEB
(78,769)
Deferred Inflows Related to OPEB
108,984
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 (6,898)
Net Pension Liability 61,715
Total OPEB Liability (210,322)
Change in net position of governmental activities $ 6,602,405 The accompanying notes are an integral part of this statement. 21 City of Yucaipa
Statement of Net Position
Proprietary Funds
June 30, 2025
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
$ 2,261,619
809
65,419
2,327,847
157,473
157,473
350,379
350,379
507,852
$ 1,819,995
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, 2025
Governmental
Activities -
Internal Service
Funds
OPERATING REVENUES
Charges for Services
$ 1,793,206
Other Income
165,107
Total Operating Revenues
1,958,313
OPERATING EXPENSES
General and Administrative
1,424,332
Property and Liability Premiums
1,048,462
Claims Expense
273,915
Total Operating Expenses 2,746,709
Operating Income (Loss) (788,396)
NON -OPERATING REVENUES (EXPENSES)
Investment Income 81,970
Income (Loss) before contributions and transfers (706,426) Transfers In 1,471,484
Transfers Out -
Total Transfers 1,471,484
Change in Net Position 765,058
Total Net Position, Beginning of Year 1,054,937
Total Net Position, End of Year $ 1,819,995
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, 2025
Governmental
Activities -
Internal Service
Funds
Cash Flows from Operating Activities
Cash Received from Users
$ 1,793,206
Cash Paid to Employees for Salaries and Benefits
(537,320)
Cash Paid to Suppliers for Goods and Services
(975,117)
Cash Paid for Claims and Premiums
(1,137,224)
Other Receipts
304,470
Net Cash Provided (Used) by Operating Activities (551,985) Cash Flows from Non -Capital Financing Activities
Transfers from Other Funds 1,471,484
Transfers to Other Funds -
Net Cash Provided (Used) by Non -Capital Financing Activities 1,471,484 Cash Flows from Investing Activities
Interest Received 82,650
Net Increase (Decrease) in Cash and Cash Equivalents 1,002,149 Cash and Cash Equivalents, Beginning of Year 1,259,470
Cash and Cash Equivalents, End of Year $ 2,261,619
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities
Operating income (loss)
$ (788,396)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
(Increase) Decrease in Accounts Receivable
139,363
(Increase) Decrease in Prepaid Items
7,339
Increase (Decrease) in Accounts Payable
(17,772)
Increase (Decrease) in Claim Liabilities
107,481
Net Cash Provided (Used) By Operating Activities
$ (551,985)
The accompanying notes are an integral part of this statement. 24 City of Yucaipa
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Successor Agency
Private -Purpose
Trust Fund
ASSETS
Cash and Investments $ 784,270
Cash and Investments with Fiscal Agent 579,736
Accounts Receivable -
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
The accompanying notes are an integral part of this statement.
Custodial
Funds
$ 2,167,512
281,932
9,179
1,364,006 2,458,623
102,462
5,888,216
5,990,678
(4,626,672)
2,458,623
$ (4,626,672) $ 2,458,623
25 City of Yucaipa
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
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
$ 714,899 $ 1,779,250
35,244 3,534
750,143 1,782,784
148,406 76,259
312,849 -
- 1,739,875
461,255 1,816,134
288,888 (33,350)
(4,915,560) 2,491,973
$ (4,626,672) $ 2,458,623
The accompanying notes are an integral part of this statement. 26 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
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, 2025
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, 2025
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, 2025
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 Public Safety Special Revenue Fund accounts for restricted, committed and assigned revenues received for public safety purposes.
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, 2025
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, 2025.
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, 2025
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 $1,974,112 in unearned revenue reported as of June 30, 2025 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, 2025
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, 2024
Measurement Period July 1, 2023 to June 30, 2024
33 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
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 $3,030 from July through May and $3,095 in June. The current 5-year term will expire in December 2030.
At June 30, 2025 the balances of the lease receivable and deferred inflow of resources were $182,906 and $179,222, respectively.
2) CASH AND INVESTMENTS
Cash and investments are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and Investments $ 59,310,030
Restricted Cash and Investments 968,852
Statement of Fiduciary Net Postion:
Cash and Investments 2,951,782
Cash and Investments with Fiscal Agent 861,668
Total Cash and Investments $ 64,092,332
Cash and Investments consist of the following:
Cash on Hand $ 3,450
Deposits with Financial Institutions 6,250,974
Investments 57, 837, 908
Total Cash and Investments $ 64,092,332
34 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
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.
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
15%
10%
Negotiable Certificates of Deposit
2 years
30%
None
Repurchase Agreements
1 year
None
None
Money Market Mutual Funds
N/A
20%
10%
Local Agency Investment Fund (LAIF)
N/A
None
None
Supranationals
5 years
30%
None
Municipal Bonds
5 years
30%
None
*Based on investment policy, which may be more restrictive than state law in certain circumstances.
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, 2025
2) CASH AND INVESTMENTS - Continued
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rate. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer -term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investment by maturity:
Investment Type
U.S. Treasury Obligations
U.S. Agency Securities
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
Disclosures Relating to Credit Risk
Total
Remaining Maturity (in Months)
12 Months or Less 1 to 2 Years 2 to 5 Years
$ 25, 678, 069
$ 5,675,304
$ 3,830,672 $
16,172, 093
11, 397, 691
4,776,060
1,160, 799
5,460,832
195,681
146,951
48,730
-
2, 220,156
77,781
953,661
1,188, 714
1,479,162
-
-
1,479,162
16, 008, 713
16, 008, 713
-
-
278, 700
278,700
-
-
48,562 48,562 - -
531,174 531,174 - -
$ 57,837,908 $ 27,543,245 $ 5,993,862 $ 24,300,801
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type. The investments must meet the minimum investment rating when purchased.
Investment Type
Total
U.S. Treasury Obligations
$ 25,678,069
U.S. Agency Securities
11,397,691
Municipal Bonds
195,681
Medium Term Notes
2,220,156
Negotiable Certificates of Deposit
1,479,162
LAIF
16,008,713
Money Market Mutual Funds
278,700
Held by Bond Trustee:
LAIF
48,562
Money Market Mutual Funds
531,174
Total Pooled Investments
$ 57,837,908
Minimum
Legal
Rating
AAA A/AA
N/A
_
$ $ 25,678,069 $
N/A
11,397,691
A-
- 195,681
A-
60,768 2,031,095
N/A
- -
N/A
- -
N/A
278,700 -
Rating not
BBB Required
128,293
- 1,479,162
16, 008, 713
N/A - - 48,562
AAA 531,174 - - -
$ 870,642 $ 39,302,536 $ 128,293 $ 17,536,437
36 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
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, 2025, 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, 2025, 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, 2025, 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, 2025:
37 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
2) CASH AND INVESTMENTS - Continued
Investment Type
Total
U.S. Treasury Obligations
$ 25,678,069
U.S. Agency Securities
11,397,691
Municipal Bonds
195,681
Medium Term Notes
2,220,156
Total Pooled Investments
$ 39,491,597
Investment in State Investment Pool
Fair Value Hierarchy
Level 1 Level 2 Level 3
$ 25, 678, 069 $ - $ -
- 11, 397, 691 -
- 195,681 -
- 2,220,156 -
$ 25, 678, 069 $ 13, 813, 528 $ -
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, 2025 are as follows:
Due From (Receivable) Due To (Payable) Amount
General Fund Development Impact Fees $ 5,860,476
Miscellaneous Capital Projects 791,584
Non -major Governmental Funds 1,017,280
Facilities Construction Development Impact Fees 761,000 Total $ 8,430,340
The interfund balance due to the General Fund was the result of short-term borrowings to cover deficit cash balances at June 30, 2025. The $761,000 due from non -major governmental funds is a result of short-term borrowings for capital projects. Interfund advances at June 30, 2025 are as follows:
Advances to Advances From
Other Funds (Receivable) Other Funds (Payable)
General Fund Development Impact Fees
General Fund Non -major Governmental Funds
Public Safety Fund Non -major Governmental Funds
Total Advances To/From Other Funds
Amount
$ 8,807,164
1,637,082
1,784,703
$ 12,228,949
The advances due to the City's General Fund and Public Safety 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, 2025
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
$
4,512,654
100%
Fire Facilities Development Impact Fees
1,784,702
50%
Park Facilities Development Impact Fees
4,294,511
50%
Low Water Crossing Fund
1,637,082
$
12,228,949
Interfund transfers at June 30, 2025 are as follows:
TRANSFERSIN
Miscellaneous
Development
Miscellaneous
General Public Special
Impact
Facilities
Capital Internal
Non -Major
TRANSFERS OUT Fund Safety Revenue
Fees
Construction
Projects Service Fund
Funds
Total
General Fund $ $ 15,865,716 $ -
$ 6,400,000
$ $
$ 1,471,484
$
$23,737,200
Public Safety - 2,240
-
-
2,240
Development Impact Fees 55,329
1,268
56,597
Facilities Construction -
166,135
-
166,135
Miscellaneous Capital Projects
-
-
37,102
37,102
Non -Major Funds 140,060 -
571,178
-
4,759,678
5,470,916
$ 140,060 $ 15, 865, 716 $ 57,569
$ 6,971,178
$ $
166,135 71,471,484
$ 4, 798, 048
$ 29,470,190
The General Fund transferred $15,865,716 in assigned funds to the Public Safety Fund for public safety costs.
The General Fund transferred $6,400,000 to the Development Impact Fees Fund to fund development related capital projects. The transfer from the General Fund to the Internal Service Fund was to cover claims expenses.
Other transfers were made between various funds to fund project costs for streets, parks, and various other public facilities.
4) NOTES AND LOANS RECEIVABLE
Notes and Loans Receivable at June 30, 2025 include $192,410 in loans relating to the City's Energy Independence Program, $79,750 relating to the City's Fagade Improvement Program, and $4,791 in employee computer loans. 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. See Note 17 for more information regarding the $4,500,000 loan. 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, 2025
5) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025 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 $ 3,631,133 $ - $ 18, 789, 316
3,961,941 22,864 - 3,984,805
3,988,487 187,860 (56,030) 4,120,317
255,897,946 2,458,189 - 258,356,135
279, 006, 557 6,300,046 (56, 030) 285, 250, 573
(11,481,611)
(523,039)
- (12,004,650)
(2,913,609)
(292,126)
- (3,205,735)
(2,998,384)
(270, 728)
56,030 (3,213,082)
(163,970,825)
(4,622,568)
- (168,593,393)
(181,364,429)
(5,708,461)
56,030 (187,016,860)
97, 642,128
591,585
- 98, 233, 713
5,050,091 - - 5,050,091
59, 363, 079 609,236 - 59, 972, 315
31, 886, 468 9,382,758 (6,198, 200) 35, 071, 026
96, 299, 638 9,991,994 (6,198, 200) 100, 093, 432
$ 193, 941, 766 $ 10, 583, 579 $ (6,198, 200) $ 198, 327,145 Depreciation expense was charged to the following functions in the Statement of Activities:
General Government
$ 267,194
Public Safety
766,546
Public Works
4,330,891
Community Development
109,017
Community Services
234,813
Total Depreciation Expense $ 5,708,461
40 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
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, 2025:
Beginning Ending Due Within Due Beyond
Balance Additions Deletions Balance One Year One Year
Governmental Activities:
Total OPEB Liability
$ 1,922,465
$ 210,322 $
- $ 2,132,787 $
40,894 $ 2,091,893
Net Pension Liability
7,201,492
-
61,715 7,139,777
- 7,139,777
Claims Liability
242,898
107,481
- 350,379
- 350,379
Compensated Absences, Net
837,239
6,898
- 844,137
211,034 633,103
Total
$ 10, 204, 094
$ 324,701 $
61,715 $ 10, 467, 080 $
251,928 $ 10, 215,152
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, 2025:
Beginning
Ending
Due Within
Due Beyond
Balance Additions
Deletions
Balance
One Year
One Year
Tax Allocation Bonds:
1998
$ 205,000 $ -
$ 30,000
$ 175,000
$ 35,000
$ 140,000
2004
1,335,000 -
60,000
1,275,000
85,000
1,190, 000
2010
4,570,000 -
145,000
4,425,000
125,000
4,300,000
Unamortized Premium
14,041 -
825
13,216
825
12,391
Total
$ 6,124, 041 $ -
$ 235,825
$ 5,888,216
$ 245,825
$ 5,642,391
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, 2025
7) FIDUCIARY FUND LONG-TERM DEBT - Continued
Fiscal Year Ending
June 30,
Principal
2026
$ 35,000
2027
45,000
2028
45,000
2029
50,000
2004 Tax Allocation Bonds
Interest Total
$ 8,662 $ 43,662
6,463 51,463
3,987 48,987
1,375 51,375
Totals $ 175,000 $ 20,487 $ 195,487
On October 12, 2004, the Yucaipa Redevelopment Agency issued $2,500,000 of 2004 Tax Allocation Bonds.
The proceeds were used to finance various improvement projects throughout the Agency. The bonds are payable exclusively from pledged tax revenues. The 2004 Bonds consist of $2,500,000 of term bonds.
The bonds accrue interest rates between 2.10% and 5.00% and are payable semiannually on March 1 and September 1 of each year commencing March 1, 2005. Principal on the bonds is payable in amounts ranging from $30,000 to $170,000 and is payable in semi-annual installments commencing on March 1, 2005 and ending September 1, 2034. Future debt service requirements are as follows:
Fiscal Year Ending
June 30,
Principal
Interest
Total
2026
$ 85,000
$ 60,900
$ 145,900
2027
85,000
56,862
141,862
2028
90,000
52,650
142,650
2029
90,000
48,263
138,263
2030
145,000
42,534
187,534
2031
150,000
35,250
185,250
2032
155,000
27,625
182,625
2033
160,000
19,750
179,750
2034
170,000
11,500
181,500
2035
145,000
3,625
148,625
Totals
$ 1,275,000
$ 358,959
$ 1,633,959
2010 Tax Allocation Bonds
On November 2, 2010, the Yucaipa Redevelopment Agency issued $6,030,000 of 2010 Tax Allocation Bonds.
The proceeds are to be used to finance various improvement projects throughout the project area and are payable exclusively from pledged tax revenue. The 2010 Tax Allocation Bonds consisted of $6,030,000 of term bonds.
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, 2025 was $4,425,000. Future debt service requirements are as follows:
42 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
7) FIDUCIARY FUND LONG-TERM DEBT - Continued
Fiscal Year Ending
June 30,
Principal
Interest
2026
$ 125,000
$ 235,378
2027
125,000
229,206
2028
135,000
222,622
2029
145,000
215,447
2030
155,000
207,759
2031
165,000
199,456
2032
175,000
190,422
2033
185,000
180,747
2034
195,000
170,534
2035
240,000
158,844
2036
405,000
141,509
2037
425,000
118,938
2038
450,000
94,875
2039
475,000
69,437
2040
500,000
42,625
2041
525,000
14,438
Total
360,378
354,206
357,622
360,447
362,759
364,456
365,422
365,747
365,534
398,844
546,509
543,938
544,875
544,437
542,625
539,438
Totals $ 4,425,000 $ 2,492,237 $ 6,917,237
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, 2023 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2023 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, 2025
8) PENSION PLAN - Continued
The Plan's provisions and benefits in effect at June 30, 2025, 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%
13.31% + $522,570
8.18% + $6,694
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 was $529,264 in fiscal year 2025. The City's contributions to the Plan for the year ended June 30, 2025 were $1,260,104.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan of $7,139,777. 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, 2024, 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, 2023 rolled forward to June 30, 2024 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, 2024, and 2025 was as follows:
Proportion - June 30, 2024
Proportion - June 30, 2025
Change - Increase (Decrease)
0.14402%
0.14762%
0.00360%
44 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
8) PENSION PLAN - Continued
For the year ended June 30, 2025, the City recognized a pension expense of $1,832,498. At June 30, 2025, 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
$ 1,260,104
$ -
Differences between actual and expected experience
617,299
24,087
Changes in assumptions
183,507
-
Change in employer's proportion
330,798
-
Differences between employer's contributions and
employer's proportionate share of contributions
12,146
75,061
Net differences between projected and actual
earnings on plan investments
411,028
-
Total
$ 2,814,882
$ 99,148
$1,260,104 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, 2026. 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
2026
$ 577,645
2027
976,260
2028
42,581
2029
(140, 856)
Actuarial Assumptions — The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
Valuation date
June 30, 2023
Measurement date
June 30, 2024
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, 2025
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, 2025
1 % Decrease 5.90%
Net Pension Liability/(Asset) $ 11,992,927
Current Discount Rate 6.90%
Net Pension Liability/(Asset) $ 7,139,777
1 % Increase 7.90%
Net Pension Liability/(Asset) $ 3,144,921
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 ($157 and $158 for the calendar years 2024 and 2025 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, 2025, the City's pay-as-you-go costs were $23,470 and an implicit subsidy of $17,424.
Total OPEB Liability - The City's total OPEB liability was measured as of June 30, 2024 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, 2025
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
5.50% for 2024, 5.25% for 2025, ultimate rate of 4.00% for 2030 and later years
Inflation Rate
2.50%
Salary Changes
3.00%
Discount Rate
3.97% - Bond Buyer 20-Bond GO index: June 30, 2024
3.86% - Bond Buyer 20-Bond GO index: June 30, 2023
Medical CPI
3.50% - used to project PERS statutory minimum benefit
Discount Rate — The discount rate used to measure the total OPEB liability was 3.97 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, 2024 (June 30, 2023 measurement date) $ 1,922,465
Changes in the year:
Service cost
197,046
Interest on the total OPEB liability
81,104
Changes in assumptions or other inputs
(30,753)
Difference between expected and actual
experience
-
Benefit payments, including implicit subsidy
(37,075)
Net changes
210,322
Balance at June 30, 2025 (June 30, 2024 measurement date) $ 2,132,787 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
(2.97%) (3.97%) (4.97%)
Total OPEB liability $ 2,440,194 $ 2,132,787 $ 1,882,420 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 $ 1,816,391 $
2,132, 787 $ 2,540,748
48 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
9) OTHER POSTEMPLOYMENT BENEFITS - Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB - For the year ended June 30, 2025, the City recognized OPEB expense of $221,001. 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 $ 40,894 $ - Differences Between Expected and Actual Experience - 544,308 Changes in Assumptions or Other Inputs 256,320 390,392
Total $ 297,214 $ 934,700
The $40,894 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ended June 30, 2026. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
Year Ending
June 30,
Amount
2026
$ (57,149)
2027
(63, 016)
2028
(84, 350)
2029
(107, 011)
2030
(111, 020)
Thereafter
(255, 834)
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, 2025
10) SUMMARY DISCLOSURE OF SELF-INSURANCE CONTINGENCIES
Fiscal Claims Payable Claims Payable
Year Beginning of Year Additions Deletions End of Year
6/30/25 $ 242,898 $ 107,481 $ - $ 350,379
6/30/24 141,241 105,137 (3,480) 242,898
6/30/23 264,822 757 (124,338) 141,241
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, 2025, deferral fees owed to the City for all types of development impact fees totaled approximately $452,000.
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, 2025
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, 2025 is $8,660,000. 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 approximately $2.9 million. 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, 2025
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.
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, 2025, are presented below:
Public Safety
Miscellaneous
Development
Miscellaneous
Non -major
General
Special
Special
Impact
Facilities
Capital
Governmental
Fund
Revenue Fund
Revenue Fund
Fees
Construction
Projects
Funds
Total
Nonspendable:
Advances to Other Funds
$10,444,246
$
$
$
$
$
$
$10,444,246
Prepaids
81,438
81,438
Restricted for:
Capital Projects
-
64,677
64,677
Public Works/Street Projects
1,051,595
691,308
4,763,615
6,506,518
Public Safety
-
-
1,045,674
1,045,674
Landscape & Lighting
3,720,631
3,720,631
Community Services/Education
-
2,340,744
2,340,744
Committed to:
Emergency Contingency
5,000,000
-
5,000,000
Economic Stabilization
1,000,000
1,000,000
Fire Protection
-
10,900,846
10,900,846
Assigned to:
Public Safety
776,018
776,018
Capital Projects
-
8,174,645
8,174,645
Unassigned
22,638,176
-
(15,045,369)
-
-
(2,322,935)
5,269,872
Total Fund Balances
$39,163,860
$11,676,864
$ 1,051,595
$ (15,045,369)
$ 8,174,645
$ 691,308
$ 9,612,406
$55,325,309
52 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
15) ACCUMULATED FUND DEFICITS
At June 30, 2025, the following funds had deficit fund balances:
Major Funds — Capital Projects:
Development Impact Fees
Non -major Funds
Gas Tax
Housing Authority
TDA Article 3
Low Water Crossings
$ (15,045,369)
(513,690)
(158,963)
(13,200)
(1,637,082)
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 the City establishing a new Public Safety Special Revenue Fund:
Reporting Units Affected by Adjustments to
and Restatements of Beginning Balances
New Major
Public Safety
General
Special
Non -major
Fund
Revenue Fund
Funds
Fund balances, beginning
of year, as previously reported
$ 50,904,583
$ -
$ 12,262,863
Change withing the reporting entity
(9,307,045)
11,151,963
(1,844,918)
Net position or fund balances, beginning
of year, as restated
$ 41, 597, 538
$ 11,151, 963
$ 10,417, 945
53 City of Yucaipa
Notes to Financial Statements
For the Year Ended June 30, 2025
17) CONTINGENCIES
As described in Note 4, a secured loan in the amount of $4,500,000 is held in the Facilities Construction Capital Project Fund. 7% interest only payments are due monthly. Principal is due at loan maturity, December 31, 2026.
The security for the loan is an 80-acre parcel within the city limits. The appraised value of the security at the time the loan was made exceeded the loan principal. The property was reappraised in 2025 and the appraised value continues to exceed the loan principal. The agreement includes a purchase option that may be exercised at any point during the loan period. The option includes an interest acceleration clause that would act as a credit against the strike price. The option may be transferred at the City's discretion. In February 2026, the City Council directed staff to file a notice of default due to missed interest payments and, accordingly, management has evaluated this loan for impairment. Based on the appraised value of the loan security and the transferable option to purchase, management has concluded that the present value of future cash flows in such a scenario supports the $4,500,000 book value. Accordingly, the loan is not considered impaired. 54 REQUIRED SUPPLEMENTARY INFORMATION
55 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2025
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
2024
0.14762% $
7,139,777 $
7,346,069
97.19%
80.15%
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%
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%.
56 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2025
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
2025
$ 1,260,104 $
(1,260,104) $
- $
8,086,864
15.58%
2024
1,116, 750
(1,116, 750)
-
7,346,069
15.20%
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%
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, 6/30/2023
57 THIS PAGE INTENTIONALLY LEFT BLANK
58 City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2025
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
2024 2023 2022
$ 197,046 $
175,859 $
185,107
81,104
89,732
54,463
-
(620,244)
-
(30,753)
43,148
(588,579)
(37,075)
(43,462)
(49,882)
210,322
(354,967)
(398,891)
1,922,465
2,277,432
2,676,323
$ 2,132,787 $ 1,922,465 $ 2,277,432
$ 8,412,267 $ 7,555,408 $ 5,777,443
25.35% 25.44% 39.42%
*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 2025, the accounting discount rate changed from 3.86% to 3.97%.
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%.
59 Measurement Period
2021 2020 2019 2018 2017
$ 154,728 $
142,461 $
119,792 $
102,354 $
99,373
60,116
65,155
63,678
50,657
46,820
(38,585)
-
(39,127)
-
-
224,819
196,730
189,572
(104,868)
-
(47,193)
(41,805)
(26,360)
(28,231)
(19,085)
353,885
362,541
307,555
19,912
127,108
2,322,438
1,959,897
1,652,342
1,632,430
1,505,322
$ 2,676,323 $ 2,322,438 $ 1,959,897 $ 1,652,342 $ 1,632,430 $ 4,865,564 $ 5,131,471 $ 4,750,449 $ 3,643,825 $ 3,496,726
55.01 % 45.26% 41.26% 45.35% 46.68%
.e
City of Yucaipa
Required Supplementary Information
Year Ended June 30, 2025
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
2025
$ 40,894
2024
37,075
2023
43,462
2022
49,882
2021
47,193
2020
41,805
2019
26,360
2018
28,231
2017
19,085
$ (40,894) $
- $ 8,412,267
0.49%
(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. 61 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Fund
Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes:
Property Taxes
$ 9,646,000
$ 9,646,000
$ 10,255,193
$ 609,193
Sales and Use Taxes
5,605,327
6,105,327
7,317,642
1,212,315
Franchise Taxes
1,738,000
3,838,000
3,794,521
(43,479)
Documentary Transfer Tax
200,000
200,000
327,887
127,887
Other Taxes
175,000
175,000
235,146
60,146
Licenses and Permits
1,574,414
1,574,414
1,405,945
(168,469)
Fines and Forfeitures
33,000
33,000
51,120
18,120
Charges for Services
7,495,463
7,495,463
6,600,202
(895,261)
Intergovernmental
7,240,000
7,240,000
7,671,242
431,242
Investment Income
-
-
1,216,875
1,216,875
Other
5,000
5,000
153
(4,847)
Total Revenues
33,712,204
36,312,204
38,875,926
2,563,722
EXPENDITURES
Current:
General Government:
City Manager
324,186
677,949
506,508
171,441
City Council
124,431
123,837
85,641
38,196
General Services/City Clerk
1,023,389
1,036,475
922,886
113,589
Human Resources
336,485
336,488
245,159
91,329
Governmental Affairs
416,653
413,128
290,623
122,505
Finance
907,851
905,980
656,458
249,522
Non -departmental
1,077,711
1,031,112
516,632
514,480
Community Development
1,908,807
1,901,903
1,579,024
322,879
Building and Safety
1,361,204
2,861,204
1,759,312
1,101,892
Public Works
4,462,833
4,717,476
4,026,869
690,607
Community Services
7,668,094
7,863,319
6,924,242
939,077
Capital Outlay
1,097
544,865
199,110
345,755
Total Expenditures
19,612,741
22,413,736
17,712,464
4,701,272
Excess (Deficiency) of Revenues
over Expenditures
14,099,463
13,898,468
21,163,462
7,264,994
OTHER FINANCING SOURCES (USES)
Transfers In
506,941
506,941
140,060
(366,881)
Transfers Out
(16,362,938)
(30,525,300)
(23,737,200)
6,788,100
Total Other Financing Sources (Uses) (15,855,997) (30,018,359) (23,597,140) 6,421,219 Net Change in Fund Balances
(1,756,534) (16,119,891) (2,433,678) 13,686,213
Fund Balances, Beginning of Year, as adjusted 41,597,538 41,597,538 41,597,538 - Fund Balances, End of Year $ 39,841,004 $ 25,477,647 $ 39,163,860 $ 13,686,213 62 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Public Safety Special Revenue Fund
Year Ended June 30, 2025
REVENUES
Property Taxes
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
Public Safety
Fire Protection Services
Paramedic 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)
$ 6,070,000 $ 6,070,000 $ 6,273,816 $ 203,816
-
50,000
330,782
280,782
-
-
121,667
121,667
-
-
608,282
608,282
-
-
590,931
590,931
6,070,000
6,120,000
7,925,478
1,805,478
14,876,453
16,961,914
15,789,988
1,171,926
6,400,315
7,159,389
5,778,121
1,381,268
2,244,188
2,462,570
1,695,944
766,626
-
2,475,505
-
2,475,505
23,520,956
29,059,378
23,264,053
5,795,325
(17,450,956) (22,939,378) (15,338,575) 7,600,803
14,876,453 15,877,627 15,865,716 (11,911)
(300,000) (302,240) (2,240) 300,000
Total Other Financing Sources (Uses) 14,576,453 15,575,387 15,863,476 288,089 Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
(2,874,503) (7,363,991) 524,901 7,888,892
11,151,963 11,151,963 11,151,963 -
$ 8,277,460 $ 3,787,972 $ 11,676,864 $ 7,888,892
63 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Miscellaneous Special Revenue Fund
Year Ended June 30, 2025
Budgeted Amounts
Original Final
REVENUES
Variance with
Final Budget
Actual Positive
Amounts (Negative)
Fines & Forfeitures $ 15,697 $ 15,697 $ 15,814 $ 117
Charges for Services 65,000 65,000 74,119 9,119
Intergovernmental 3,464,829 3,576,330 205,862 (3,370,468) Investment Income - - 40,693 40,693
Other - - 1,127 1,127
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
3,545,526 3,657,027
60,087 73,935
19 30,273
147,896 204,668
208,002 308,876
3,337,524 3,348,151
337,615 (3,319,412)
72,502 1,433
18,103 12,170
102,610 102,058
193,215 115,661
144,400 (3,203,751)
-
57,570
57,569
(1)
(3,309,081)
(3,433,669)
-
3,433,669
(3,309,081)
(3,376,099)
57,569
3,433,668
28,443
(27,948)
201,969
229,917
849,626
849,626
849,626
-
$ 878,069 $ 821,678 $ 1,051,595 $ 229,917
64 City of Yucaipa
Notes to Required Supplementary Information
Year Ended June 30, 2025
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).
65 SUPPLEMENTARY INFORMATION
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Development Impact Fees Capital Projects Fund Year Ended June 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges For Services $ 2,350,000 $ 2,350,000 $ 1,996,790 $ (353,210) Intergovernmental - 250,000 1,283,039 1,033,039
Investment Income - - 139,992 139,992
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
2,350,000 2,600,000 3,419,821 819,821
291,980 68,392 68,392 -
135,231 - - -
25,043,879 4,406,018 20,637,861
427,211 25,112,271 4,474,410 20,637,861
1,922,789 (22,512,271) (1,054,589) 21,457,682
12,780,329 26,278,551 6,971,178 (19,307,373)
(972,412) (1,044,812) (56,597) 988,215
Total Other Financing Sources (Uses)
11,807,917
25,233,739
6,914,581 (18,319,158)
Net Change in Fund Balances
13,730,706
2,721,468
5,859,992 3,138,524
Fund Balances (Deficit), Beginning of Year
(20,905,361)
(20,905,361)
(20,905,361) -
Fund Balances (Deficit), End of Year
$ (7,174,655)
$ (18,183,893)
$ (15,045,369) $ 3,138,524
67 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Facilities Construction Capital Projects Fund Year Ended June 30, 2025
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
Variance with
Final Budget
Actual Positive
Amounts (Negative)
396,419 396,419
396,419 396,419
892,367 2,335,915
166,717
2,169,198
- 2,018,996
23,085
1,995,911
892,367 4,354,911
189,802
4,165,109
(892,367) (4,354,911) 206,617 4,561,528
Transfers In
210,761
210,761
-
(210,761)
Transfers Out
(450,000)
(416,099)
(166,135)
249,964
Total Other Financing Sources (Uses)
(239,239)
(205,338)
(166,135)
39,203
Net Change in Fund Balances
(1,131,606)
(4,560,249)
40,482
4,600,731
Fund Balances, Beginning of Year
8,134,163
8,134,163
8,134,163
-
Fund Balances, End of Year
$ 7,002,557
$ 3,573,914
$ 8,174,645 $
4,600,731
.:
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Miscellaneous Capital Projects Fund Year Ended June 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 746,270 $ 746,270 $ 123,594 $ (622,676) Investment Income - - 197,708 197,708
Charges for Services 465,000 465,000 130,382 (334,618)
Other - - - -
Total Revenues
EXPENDITURES
Current:
General Government
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
1,211,270 1,211,270 451,684 (759,586)
186 2,983 2,983 -
1,173,730 401,890 771,840
186 1,176,713 404,873 771,840
1,211,084 34,557 46,811 12,254
Transfers In
450,000
789,161
166,135
(623,026)
Transfers Out
(746,270)
(1,230,304)
(37,102)
1,193,202
Total Other Financing Sources (Uses)
(296,270)
(441,143)
129,033
570,176
Net Change in Fund Balances
914,814
(406,586)
175,844
582,430
Fund Balance (Deficit), Beginning of Year
515,464
515,464
515,464
-
Fund Balance (Deficit), End of Year
$ 1,430,278
$ 108,878
$ 691,308
$ 582,430
.•
NON -MAJOR GOVERNMENTAL FUNDS
70 City of Yucaipa
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2025
Special Revenue
Energy
Independence State
Gas Tax Measure I Program COPs Grant
ASSETS
Cash and Investments $ - $ - $ 20,792 $ 1,016,622
Restricted Cash and Investments - - - -
Receivables:
Accounts - 982,952 - -
Interest 1,239 - - -
Due From Other Governments 427,405 49,939 2,159 -
Due From Other Funds - - - -
Notes and Loans Receivable - - 192,410 -
Advances to Other Funds - - - -
Prepaid Items - - - -
Total Assets $ 428,644 $ 1,032,891 $ 215,361 $ 1,016,622
LIABILITIES
Accounts Payable $ 122,026 $ - $ 2,635 $ 99,172
Accrued Liabilities 13,224 - - -
Deposits Payable - - - -
Due to Other Funds 773,706 47,650 - -
Advances From Other Funds - - - -
Total Liabilities 908,956 47,650 2,635 99,172
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 33,378 157,456 - -
FUND BALANCES
Nonspendable
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
827,785 212,726 917,450
(513,690) - - -
(513,690) 827,785 212,726 917,450
$ 428,644 $ 1,032,891 $ 215,361 $ 1,016,622
71 Special Revenue
Office of
Traffic and Housing
Safety LLMD Authority Paramedic PEG Video
$ 128,224 $ 3,763,644 $ - $ - $ 1,079,969
540 6,236 - 23,046
735 - - -
4,440 - - -
$ 128,224 $ 3,769,359 $ 6,236 $ - $ 1,103,015
$ - $ 48,728 $ - $ - $ -
- 5,554 - -
159,645 - -
48,728 165,199 - -
128,224 3,720,631 - - 1,103,015
- - (158,963) - -
128,224 3,720,631 (158,963) - 1,103,015
$ 128,224 $ 3,769,359 $ 6,236 $ - $ 1,103,015
Continued
72 City of Yucaipa
Combining Balance Sheet
Non -Major Governmental Funds (Continued)
June 30, 2025
ASSETS
Cash and Investments
Restricted Cash and Investments
Receivables:
Accounts
Interest
Due From Other Governments
Due From Other Funds
Notes and Loans Receivable
Advances to Other Funds
Prepaid Items
Total Assets
LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Due to Other Funds
Advances From Other Funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Land Sale
FUND BALANCES
Nonspendable
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
Capital Projects
Air Pool
CDBG Quality Capital Street
Capital Improvement Replacement Maintenance
$ 510,051 $ 55,690 $ 8,987 $ 6,657,655
66 - - 1,895
34,631 - - -
$ 544,748 $ 55,690 $ 8,987 $ 6,659,550
$ - $ - $ - $ 2,210,030
23,079 - - -
23,079 - - 2,210,030
10,356 - - -
511,313 55,690 8,987 4,449,520
511,313 55,690 8,987 4,449,520
$ 544,748 $ 55,690 $ 8,987 $ 6,659,550
73 Capital Projects
Total Nonmajor
TDA Low Water Governmental
Article 3 Crossings Funds
$ 13,241,634
- 1,012,774
- - 3,935
13,200 10,565 542,339
192,410
$ 13,200 $ 10,565 $ 14,993,092
$ - $ - $ 2,482,591
18,778
13,200 - 1,017,280
- 1,637,082 1,637,082
13,200 1,637,082 5,155,731
13,200 10,565 224,955
11,935,341
(13,200) (1,637,082) (2,322,935)
(13,200) (1,637,082) 9,612,406
$ 13,200 $ 10,565 $ 14,993,092
74 City of Yucaipa
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non -Major Governmental Funds
Year Ended June 30, 2025
REVENUES
Taxes:
Property Taxes
Franchise Taxes
Fines & Forfeitures
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 (new fund)
Fund Balances, Beginning, as adjusted
Fund Balances, End of Yeai
Special Revenue
Energy
Independence State
Gas Tax Measure I Program COPs Grant
6,358 - - -
3,031,859 2,537,940 - 194,820
38,469 124,943 17,483 30,526
A �
3,076,703 2,662,883 17,483 225,346
1,796,351 - - -
- - - 99,172
85,250 - - -
1,881,601 - - 99,172
1,195,102 2,662,883 17,483 126,174
(1,935,000) (3,479,985) (39,641) -
(1,935,000) (3,479,985) (39,641) -
(739,898) (817,102) (22,158) 126,174
226,208
1,644,887
234,884
791,276
226,208
1,644,887
234,884
791,276
$ (513,690) $
827,785 $
212,726 $
917,450
75 Special Revenue
Office of
Traffic and Housing
Safety LLMD Authority Paramedic PEG Video
73,981
990,092 - - -
- 141,778 - - 41,756
1,131,870 - - 115,737
- - - 42,164
748,764 - - -
748,764 - - 42,164
383,106 - - 73,573
- Jb-j, -IUb - - /3,5/3
128,224 3,337,525 (158,963) 1,844,918 1,029,442
- - - (1,844,918) -
128,224 3,337,525 (158,963) - 1,029,442
$ 128,224 $ 3,720,631 $ (158,963) $ - $ 1,103,015
Continued
76 City of Yucaipa
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non -Major Governmental Funds (Continued) Year Ended June 30, 2025
REVENUES
Taxes:
Property Taxes
Franchise Taxes
Fines & Forfeitures
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 (new fund)
Fund Balances, Beginning, as adjusted
Fund Balances, End of Yeai
Capital Projects
Air Pool
CDBG Quality Capital Street
Capital Improvement Replacement Maintenance
- - - 125,351
103,829 - - -
19,945 2,555 348 114,714
123,774 2,555 348 240,065
16,423
-
-
-
3,442
2,314
-
4,892,717
19,865
2,314
-
4,892,717
103,909
241
348
(4,652,652)
-
1,268
-
4,756,588
-
-
-
(3,090)
-
1,268
-
4,753,498
103,909
1,509
348
100,846
407,404
54,181
8,639
4,348,674
407,404
54,181
8,639
4,348,674
$ 511,313 $
55,690 $
8,987
$ 4,449,520
77 Capital Projects
Total Nonmajor
TDA Low Water Governmental
Article 3 Crossings Funds
73,981
1,121,801
- 5,868,448
909 533,426
63,531 63,548
64,440 7,661,204
42,164
- 16,423
2,018 2,547,133
- 99,172
105,260 5,088,983
107,278 7,793,875
(42,838) (132,671)
40,192 4,798,048
(13,200) - (5,470,916)
(13,200) 40,192 (672,868)
(13,200) (2,646) (805,539)
(1,634,436) 12,262,863
(1,844,918)
(1,634,436) 10,417,945
$ (13,200) $ (1,637,082) $ 9,612,406
78 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2025
REVENUES
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers 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)
$ 10,000 $ 6,358 $ (3,642)
2,910,836 3,031,859 121,023
- 38,469 38,469
2,920,836 3,076,703 155,867
1,881,043
1,796,351
84,692
88,000
85,250
2,750
1,969,043
1,881,601
87,442
951,793 1,195,102 243,309
(1,935,000)
(1,935,000) -
(1,935,000)
(1,935,000) -
(983,207)
(739,898) 243,309
226,208 226,208 -
$ (756,999) $ (513,690) $ 243,309
79 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure I Special Revenue Fund
Year Ended June 30, 2025
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
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
$ 11,982,868 $ 2,537,940 $ (9,444,928)
- 124,943 124,943
11,982,868 2,662,883 (9,319,985)
11,982,868 2,662,883 (9,319,985)
(13,217,744) (3,479,985) 9,737,759
(13,217,744) (3,479,985) 9,737,759
(1,234,876) (817,102) 417,774
1,644, 887 1,644,887 -
$ 410,011 $ 827,785 $ 417,774
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, 2025
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)
$ 16,000 $ 17,483 $ 1,483
16,000 17,483 1,483
(39,641) (39,641)
(23,641) (22,158) 1,483
234,884 234,884
$ 211,243 $ 212,726 $ 1,483
81 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, 2025
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 $ 194,820 $ 94,820
100,000 99,172 828
- 126,174 126,174
791,276 791,276
$ 791,276 $ 917,450 $ 126,174
82 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, 2025
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
83 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - LLMD Special Revenue Fund
Year Ended June 30, 2025
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)
$ 1,030,754 $ 990,092 $ (40,662)
- 141,778 141,778
1,030,754 1,131,870 101,116
1,395,473 748,764 646,709
(364,719) 383,106 747,825
(364,719) 383,106 747,825
3,337,525 3,337,525 -
$ 2,972,806 $ 3,720,631 $ 747,825
84 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Housing Authority Special Revenue Fund Year Ended June 30, 2025
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)
(158,963) (158,963) -
$ (158,963) $ (158,963) $ -
85 City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - PEG Video Special Revenue Fund
Year Ended June 30, 2025
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 $ 73,981 $ (18,019)
- 41,756 41,756
92,000 115,737 23,737
50,000 42,164 7,836
50,000 42,164 7,836
42,000 73,573 31,573
(16,136) 16,136
42,000 73,573 47,709
1,029,442 1,029,442 -
$ 1,071,442 $ 1,103,015 $ 31,573
M.
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CDBG Capital Projects Fund
Year Ended June 30, 2025
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)
$ 359,588 $ 103,829 $ (255,759)
- 19,945 19,945
359,588 123,774 (235,814)
25,346
16,423
8,923
236,686
3,442
233,244
262,032
19,865
242,167
97,556
103,909
6,353
(10,000)
-
10,000
(10,000)
-
10,000
87,556
103,909
16,353
407,404 407,404 -
$ 494,960 $ 511,313 $ 16,353
87 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, 2025
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)
-
2,555
2,555
-
2,555
2,555
1,566,635
2,314
1,564,321
(1,566,635)
241
1,566,876
1,404,482
1,268
(1,403,214)
1,404,482
1,268
(1,403,214)
(162,153)
1,509
163,662
54,181
54,181
-
$ (107,972)
$ 55,690
$ 163,662
::
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, 2025
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)
$ - $ 348 $ 348
348 348
8,639 8,639
$ 8,639 $ 8,987 $
O:
:•
City of Yucaipa
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Street Maintenance Capital Projects Fund Year Ended June 30, 2025
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)
$ 223,065 $ 125,351 $ (97,714)
- 114,714 114,714
223,065 240,065 17,000
8,420,944 4,892,717 3,528,227
8,420,944 4,892,717 3,528,227
(8,197,879) (4,652,652) 3,545,227
4,771,588 4,756,588 (15,000)
(79,349) (3,090) 76,259
4,692,239 4,753,498 61,259
(3,505,640) 100,846 3,606,486
4,348,674 4,348,674 -
$ 843,034 $ 4,449,520 $ 3,606,486
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, 2025
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)
$ (13,200) $ (13,200) $ -
(13,200) (13,200) -
(13,200) (13,200) -
$ (13,200) $ (13,200) $
91 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, 2025
REVENUES
Intergovernmental
Investment Income
Other
Total Revenues
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance (Deficit), Beginning of Year
Fund Balance (Deficit), End of Year
Variance with
Final Final Budget
Budgeted Actual Positive
Amounts Amounts (Negative)
- 909 909
63,531 63,531
- 64,440 64,440
2,018
2,018 -
1,188,968
105,260 1,083,708
1,190,986
107,278 1,083,708
(1,190,986) (42,838) 1,148,148
879,192 40,192 (839,000)
879,192 40,192 (839,000)
(311,794) (2,646) 309,148
(1,634,436) (1,634,436) -
(1,946,230) $ (1,637,082) $ 309,148
92 INTERNAL SERVICE FUNDS
93 City of Yucaipa
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
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
$ 1,260,105 $
64 1,260,169
Totals
1,001,514 $
2,261,619
745
809
65,419
65,419
1,067,678
2,327,847
109,333 48,140 157,473
350,379 - 350,379
459,712 48,140 507,852
$ 800,457 $ 1,019,538 $ 1,819,995
94 City of Yucaipa
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2025
Information
Self Insurance
Technology
Totals
OPERATING REVENUES
Charges for Services
$ -
$ 1,793,206 $
1,793,206
Other Income
165,107
-
165,107
Total Operating Revenues
165,107
1,793,206
1,958,313
OPERATING EXPENSES
General and Administrative
51,678
1,372,654
1,424,332
Property and Liability Premiums
1,048,462
-
1,048,462
Claims Expense
273,915
-
273,915
Total Operating Expenses
1,374,055
1,372,654
2,746,709
Operating Income (Loss)
(1,208,948)
420,552
(788,396)
NON -OPERATING REVENUES (EXPENSES)
Investment Income
51,004
30,966
81,970
Income (Loss) before contributions and transfers
(1,157,944)
451,518
(706,426)
Transfers In
1,471,484
-
1,471,484
Transfers Out
-
-
-
Total Transfers
Change in Net Position
Total Net Position, Beginning of Year
Total Net Position, End of Year
1,471,484
- 1,471,484
313,540 451,518 765,058
486,917 568,020 1,054,937
$ 800,457 $ 1,019,538 $ 1,819,995
95 City of Yucaipa
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
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
$ -
$ 1,793,206 $
1,793,206
(51,678)
(485,642)
(537,320)
(975,117)
(975,117)
(1,137,224)
(1,137,224)
304,470
-
304,470
(884,432)
332,447 (551,985)
1,471,484
- 1,471,484
1,471,484
- 1,471,484
52,429
30,221 82,650
639,481
362,668 1,002,149
620,624 638,846 1,259,470
$ 1,260,105 $ 1,001,514 $ 2,261,619
$ (1,208,948) $ 420,552 $ (788,396)
139,363 - 139,363
- 7,339 7,339
77,672 (95,444) (17,772)
107,481 107,481
$ (884,432) $ 332,447 $ (551,985)
M.
CUSTODIAL FUNDS
97 City of Yucaipa
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
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
$ 57,240 $ 57,032 $ 2,053,240 $ 2,167,512
- - 281,932 281,932
9,179 9,179
57,240 57,032 2,344,351 2,458,623
$ 57,240 $ 57,032 $ 2,344,351 $ 2,458,623
9.1 City of Yucaipa
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended June 30, 2025
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
$ -
$ -
$ 1,779,250
$ 1,779,250
410
2,212
912
3,534
410
2,212
1,780,162
1,782,784
-
-
76,259
76,259
-
-
1,739,875
1,739,875
-
-
1,816,134
1,816,134
410
2,212
(35,972)
(33,350)
56,830
54,820
2,380,323
2,491,973
$ 57,240
$ 57,032
$ 2,344,351
$ 2,458,623
STATISTICAL SECTION
100
THIS PAGE INTENTIONALLY LEFT BLANK
101
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 103
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 111
These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.
Debt Capacity 117
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 124
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 126
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.
102
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
2025 2024
2023
2022
2021
$ 198,327,145 $ 193,941,766
$ 191,562,417
$ 192,150,325
$ 187,300,451
1,045,674 2,764,418
1,793,531
1,290,274
842,456
5,277,305 6,219,769
4,712,120
3,403,692
172,578
521,669 490,172
1,101,382
1,297,916
8,399
4,823,646 4,366,967
4,025,520
3,643,830
3,433,073
- -
-
8,227,206
8,798,378
38,314,709 33,924,651
30,283,832
24,234,997
25,981,533
$ 248,310,148 $ 241,707,743
$ 233,478,802
$ 234,248,240
$ 226,536,868
103
Fiscal Year
2020 2019 2018 2017 2016
$ 193,575,047
$ 187,442,518
$ 173,234,642
$ 161,130,470
$ 155,769,811
437
21,998
50,095
93,740
-
689,126
773,906
1,147,116
1,437,359
1,709,562
134,574
1,345,343
1,795,685
3,136,626
3,001,667
8,364
4,306
306
13,106
14,494
3,100,353
2,914,000
2,679,478
2,497,976
2,550,577
115,836
2,451,698
2,598,651
3,590,668
4,680,900
1,245,728
1,288,717
1,277,363
1,510,011
1,489,306
25,066,595
23,879,234
33,974,660
34,487,009
38,545,036
$ 223,936,060
$ 220,121,720
$ 216,757,996
$ 207,896,965
$ 207,761,353
104
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
2025 2024 2023 2022 2021
$ 5,071,592
$ 8,402,250
$ 7,564,205
$ 4,943,392
$ 5,523,173
1,704,464
1,568,570
1,544,928
2,724,779
2,662,672
1,759,312
3,698,433
1,711,222
1,163,594
814,756
11,270,841
12,183,311
17,408,927
12,003,117
13,813,740
24,147,874
21,566,925
19,525,389
18,010,685
16,728,825
7,159,055
6,020,215
4,629,458
3,520,861
1,846,775
51,113,138
53,439,704
52,384,129
42,366,428
41,389,941
Program Revenues:
Governmental activities:
Charges for Services
12,067,566
17,363,888
16,329,217
7,477,356
4,557,440
Operating Grants and Contributions
4,358,358
3,778,818
4,710,866
5,938,900
3,568,495
Capital Grants and Contributions
4,878,792
7,931,320
4,498,377
9,340,764
9,636,799
Total governmental activities program revenues
21,304,716
29,074,026
25,538,460
22,757,020
17,762,734
Net (Expense) Revenue and Change in Net Position
(29,808,422)
(24,365,678)
(26,845,669)
(19,609,408)
(23,627,207)
General Revenues:
Taxes:
Property Taxes
15,409,687
15,830,863
14,702,749
13,802,354
13,283,544
Sales and Use Taxes
7,317,642
5,529,736
5,488,377
5,299,433
4,600,872
Franchise Taxes
3,868,502
1,833,767
1,830,862
1,672,542
1,567,185
Documentary Transfer Tax
327,887
198,320
238,018
318,285
311,936
Other Taxes
235,146
179,225
30,037
23,658
22,299
Vehicle License Fees, Unrestricted
7,450,640
6,953,493
6,425,960
5,931,673
5,689,226
Investment Income
1,736,594
1,737,071
11,955
(187,606)
43,503
Miscellaneous
64,729
332,144
204,910
460,441
5,674,866
Total General Revenue
36,410,827
32,594,619
28,932,868
27,320,780
31,193,431
Change in Net Position
6,602,405
8,228,941
2,087,199
7,711,372
7,566,224
Net Position- Beginning of the Year
241,707,743
233,478,802
231,391,603
226,536,868
218,970,644
Net Position- End of the Year
$ 248,310,148
$ 241,707,743
$ 233,478,802
$ 234,248,240
$ 226,536,868
105
Fiscal Year
2020 2019 2018 2017 2016
$ 4,640,613
$ 4,052,236
$ 4,093,998 $
3,810,457
$ 3,217,017
2,267,651
2,374,236
2,256,053
2278822
5564038
609,026
478,236
387,227
443,510
535,135
10,128,308
8,542,114
8,011,508
5,836,411
6,628,742
16,758,782
15,425,996
14,453,214
13,564,138
12,526,134
2,720,132
2,474,834
2,012,974
2,549,809
1,893,305
37,124,512
33,347,652
31,214,974
28,483,147
30,364,371
4,492,201
4,452,055
3,598,357
3,695,175
3,601,914
2,203, 890
1,698, 865
1,730, 819
1,590, 665
1,712,301
9,938,960
6,044,151
13,559,464
1,648,680
7,479,465
16,635,051
12,195,071
18,888,640
6,934,520
12,793,680
(20,489,461)
(21,152,581)
(12,326,334)
(21,548,627)
(17,570,691)
12,598,276
12,136,328
11,616,465
11,072,145
10,411,588
3,751,828
4,178,316
3,491,965
3,446,413
3,528,777
1,491,027
1,422,487
1,381,727
1,339, 715
1,415,951
186,819
165,803
196,525
187,977
165,430
22,379
22,903
22,529
22,666
22,941
5,448,407
5,183,224
4,961,077
4,706,421
4,459,501
412,106
646,973
64,534
183,557
463,238
392,959
760,271
391,399
725,345
453,352
24,303,801
24,516,305
22,126,221
21,684,239
20,920,778
3,814,340
3,363,724
9,799,887
135,612
3,350,087
220,121,720
216,757,996
206,958,109
207,761,353
204,411,266
$ 223,936,060
$ 220,121,720
$ 216,757,996
$ 207,896,965
$ 207,761,353
CITY OF YUCAIPA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2025
2024
2023
2022
2021
General Fund:
Nonspendable
$ 10,525,684
$ 19,167,365
$ 21,029,653
$ 22,929,682
$ 24,846,293
Restricted
-
-
-
-
-
Committed
6,000,000
13,468,799
14,660,463
17,237,963
15,853,604
Assigned
-
-
-
-
2,387,911
Unassigned
22,638,176
18,268,419
14,992,351
10,781,774
9,284,068
Total general fund
39,163,860
50,904,583
50,682,467
50,949,419
52,371,876
All other governmental funds
Nonspendable
-
-
3,380
34,488
-
Restricted
13,678,244
15,421,352
11,128,786
9,467,285
9,225,434
Committed
10,900,846
-
-
-
-
Assigned
8,950,663
8,134,163
8,930,312
7,273,590
5,449,265
Unassigned
(17,368,304)
(22,698,760)
(26,518,351)
(25,445,902)
(25,817,650)
Total all other governmental fund;
16,161,449
856,755
(6,455,873)
(8,670,539)
(11,142,951)
Total Fund Balances $
55,325,309
$ 51,761,338
$ 44,226,594
$ 42,278,880 $
41,228,925
Beginning in FY 2018/19, the General Fund and the Fire Special Revenue Fund were combined.
Beginning in FY 24/25, the Gerenal Fund and the Fire Special Revenue Funds were reported separately. 107
Fiscal Year
2020 2019 2018 2017 2016
$ 26,910,385
$ 22,370,194
$ 20,416,604
$ 20,648,580
$ 13,946,845
-
125,052
192,397
310,760
1,073,460
18,324,766
17,908,560
7,463,406
7,035,269
6,761,166
3,187,945
4,591,778
4,019,175
3,225,598
12,009,103
6,530,400
4,621,841
5,567,230
5,080,248
11,528,265
54,953,496
49,617,425
37,658,812
36,300,455
45,318,839
-
-
-
-
2,923,167
5,684,636
10,027,656
10,547,436
12,901,073
13,272,331
-
-
11,820,420
11,811,080
8,878,997
5,777,260
12,301,900
-
(32,714,452)
(26,585,290)
(27,535,988)
(23,280,361)
(15,873,763)
(27,029,816)
(16,557,634)
609,128
13,733,692
9,200,732
$ 27,923,680
$ 33,059,791
$ 38,267,940
$ 50,034,147
$ 54,519,571
108
CITY OF YUCAIPA
Changes in Fund Balances of Governmental Funds
Revenues:
Taxes:
Property Taxes
Sales and Use Taxes
Franchise Taxes
Documentary Transfer Tax
Other Taxes
License and Permits
Fines and Forfeitures
Charges for Services
Intergovernmental
Investment Income
Other
Total Revenue
Expenditures:
Current:
General Government
Community Development
Building and Safety
Public Works
Public Safety
Fire Protection Services
Paramedic Services
Community Service
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over (under) Expenditures
Other Financing Sources (Uses)
Transfer In
Transfer Out
Total Other Financing Sources
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of the Year
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
707's ? m 4 7 071 7 077
$ 16,529,009
$ 15,830,863
$ 14,702,749
$ 13,802,354
7,317,642
5,529,736
5,488,377
5,299,433
3,868,502
1,833,768
1,830,861
1,672,542
327,887
198,320
238,018
318,285
235,146
179,225
30,037
23,658
1,405,945
1,883,453
2,117,419
1,375,320
66,934
74,836
50,653
326,104
10,254,076
14,393,805
10,961,115
8,991,482
15,273,852
19,543,854
17,116,881
17,905,890
3,133,395
2,747,790
341,513
(410,975)
655,759
333,216
3,075,383
464,790
59 069 147
62 54R 966
55 (M 006
49 76R RRI
3,338,573
6,754,205
5,991,502
5,190,044
1,595,447
1,372,355
871,119
1,388,086
1,759,312
3,698,433
1,711,222
1,163,594
6,812,094
6,840,164
6,865,091
5,207,567
15,907,263
20,601,964
18,702,370
17,143,688
5,778,121
135,231
-
-
1,695,944
-
-
-
6,924,242
5,801,175
4,409,368
3,302,618
10,221,696
9,249,681
14,824,775
14,376,331
54,032,692
54,453,208
53,375,447
47,771,928
5,035,455
8,095,658
2,577,559
1,996,955
27,998,706
10,061,861
14,895,832
15,137,307
(29,470,190)
(10,622,775)
(15,525,677)
(16,084,307)
(1,471,484)
(560,914)
(629,845)
(947,000)
3,563,971
7,534,744
1,947,714
1,049,955
51,761,338
44,226,594
42,278,880
41,228,925
$ 55,325,309
$ 51,761,338
$ 44,226,594
$ 42,278,880
109
Fiscal Year
2021 2020 2019 2018 2017 2016
$ 13,283,544
$ 12,598,276
$ 12,136,328
$ 11,616,465
$ 11,072,145
$ 10,411,588
4,600,872
3,751,828
4,178,316
3,491,965
3,446,413
3,528,777
1,567,185
1,491,027
1,422,487
1,381,727
1,339,715
1,415,951
311,936
186,819
165,803
196,525
187,977
165,430
22,299
22,379
22,903
22,529
22,666
22,941
987,628
736,865
642,926
563,075
669,889
741,816
381,295
40,581
44,876
42,799
34,708
46,210
4,490,771
3,386,200
4,053,783
3,337,724
3,217,725
4,142,074
19,719,637
13,565,747
17,457,588
9,570,510
8,048,047
11,192,564
365,311
1,056,327
1,418,791
478,954
472,118
899,261
5,682,031
425,493
819,162
391,399
563,339
643,662
51,412,509
37,261,542
42,362,963
31,093,672
29,074,742
33,210,274
4,320,276
3,453,098
3,710,893
3,405,544
3,082,881
2,761,798
1,192,242
797,221
914,835
796,652
819,421
874,127
814,756
609,026
478,236
387,227
443,510
535,135
4,499,705
4,880,501
4,288,078
3,984,399
3,632,801
3,960,098
15,876,283
15,972,579
14,673,159
13,711,372
12,914,669
11,947,953
1,626,246
2,499,404
2,288,639
1,830,426
2,364,323
1,707,102
9,933,302
14,185,824
21,217,272
18,848,545
10,191,847
14,053,736
38,262,810
42,397,653
47,571,112
42,964,165
33,449,452
35,839,949
13,149,699
(5,136,111)
(5,208,149)
(11,870,493)
(4,374,710)
(2,629,675)
10,663,705
19,552,583
18,916,990
7,225,957
26,029,696
4,502,284
(10,873,705)
(19,552,583)
(18,916,990)
(7,121,671)
(26,140,410)
(4,600,255)
(210,000)
104,286 (110,714) (97,971)
12,939,699 (5,136,111) (5,208,149) (11,766,207) (4,485,424) (2,727,646) 27,923,680 46,146,697 51,354,846 63,121,053 67,606,477 70,334,123 $ 41,228,925 $ 41,010,586 $ 46,146,697 $ 51,354,846 $ 63,121,053 $ 67,606,477 110
CITY OF YUCAIPA
Assessed Value and Estimated Actual Value of Taxable Property by Major Type Last Ten Fiscal Years
Category
2025
2024
2023
2022
2021
Residental
$5,529,289,099
$5,164,832,121
$4,800,460,936
$4,477,721,348
$4,290,661,031
Commercial
480,571,189
455,798,465
420,932,556
392,826,501
384,136,677
Industrial
35,155,381
31,122,390
26,116,447
22,737,494
21,352,036
Irrigated
275,353
269,953
264,661
259,472
256,811
Dry Farm
3,185,998
2,530,583
2,480,965
2,432,318
3,068,142
Recreational
5,565,236
5,497,522
5,447,436
5,342,452
5,660,995
Institutional
7,180,838
7,111,812
5,581,027
10,279,542
16,166,803
Miscellaneous
11,692,462
15,956,167
15,875,804
15,862,094
16,814,925
Vacant Land
175,927,262
166,535,176
148,076,761
134,905,956
120,960,512
Unsecured
137,694,379
121,879,311
98,793,467
81,693,302
74,728,619
Total
$6,386,537,197
$5,971,533,500
$5,524,030,060
$5,144,060,479
$4,933,806,551
Total direct rate
0.23721
0.23831
0.23987
0.23994
0.23996
Source:
HdL
111
2020
2019
2018
2017
2016
$4,121,577,454
$3,922,178,028
$3,753,392,419
$3,545,207,827
$3,358,340,145
359,691,461
343,889,586
318,283,068
307,441,314
282,344,120
19,323,164
22,859,396
20,540,942
19,499,887
28,947,572
251,775
143,693
140,876
138,112
136,038
3,363,591
3,429,995
3,372,477
3,433,192
3,395,439
5,247,653
5,188,913
5,127,653
5,069,825
5,415,474
12,156,160
8,179,074
9,902,113
10,120,689
3,759,117
17,107,033
10,852,354
11,567,874
10,872,131
10,959,685
111,676,789
108,457,958
113,299,055
112,236,082
109,221,283
74,568,629
69,812,138
66,612,865
67,513,752
64,879,744
$4,494,991,135
$4,302,239,342
$4,081,532,811
$4,724,963,709
$3,867,398,617
0.24061
0.22919
0.22923
0.22921
0.22914
112
CITY OF YUCAIPA
Direct & Overlapping Property Tax Rates
(Rate Per $100 of Taxable Value)
Agency
2025
2024
2023
2022
Basic Levy
1.00000
1.00000
1.00000
1.00000
Redlands Unified School Bond 1993
0.02770
0.03160
0.02790
0.06620
San Bernardino Community College Bond
0.03700
0.04520
0.04500
0.05340
San Bernardino Valley Muni Water
0.11000
0.12000
0.13000
0.13000
Total Direct & Overlapping Tax Rates
1.17470
1.19680
1.20290
1.24960
City's Share of 1% Levy Per Prop 13
0.22228
0.22228
0.22228
0.22228
General Obligation Debt Rate
0 0
0 0
Total Direct Rate
0.23721
0.23831
0.23987
0.23994
Source:
HdL
113
2021
2020
2019
2018
2017
2016
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
0.03600
0.03390
0.03240
0.04940
0.05240
0.05670
0.06510
0.05620
0.04070
0.03760
0.03500
0.04030
0.14250
0.14250
0.15250
0.15250
0.16250
0.16250
1.24360
1.23260
1.22560
1.23950
1.24990
1.25950
0.22228
0.22228
0.22228
0.22228
0.22228
0.22228
0 0
0 0
0 0
0.23996
0.24061
0.22919
0.22923
0.22921
0.22914
114
CITY OF YUCAIPA
Principal Property Tax Payers
Current Year and Nine Years Ago
2025
Combined (Secured & Unsecured)
Total Assessed
Percent of Net
Taxpayer
Value
Rank
Assessed Value
SORENSON ENGINEERING INC
$ 43,689,439
1 0.68%
YVCC II LLC
32,281,360
2 0.51%
SUN LAKEVIEW MOBILE ESTATES LLC
25,203,690
3 0.39%
SNR 24 GOLDEN OAKS OWNER LLC
21,202,554
4 0.33%
SPECTRUM PACIFIC WEST LLC
20,032,756
5 0.31%
FIRST AMENDED CONROY FAMILY TRUST
16,388,171
6 0.26%
CHAPMAN HEIGHTS YUCAIPA
16,084,080
7 0.25%
YUCAIPA VENTURE LLC
16,083,032
8 0.25%
ACAA LP
15,675,495
9 0.25%
VANTAGEONE REAL ESTATE INVESTMENTS
14,175,385
10 0.22%
STATER BROS MARKETS
CALANDA REAL LP
PUTNAM FAMILY PARTNERSHIP
YUCAIPA VALLEY ACRES
JDP CH INVESTMENTS LP
ATLAS STORAGE YUCAIPA LLC
TOP TEN TOTAL 220,815,962
CITY TOTAL $ 6,386,537,197
Source:
HdL
2016
Combined (Secured & Unsecured)
Total Assessed
Percent of Net
Value
Rank
Assessed Value
$ 10,220,338
8 0.26%
16,304,360
1 0.42%
14,407,694
3 0.37%
13,650,415
4 0.35%
13,307,475
5 0.34%
11,490,032
6 0.30%
10,847,644
7 0.28%
15,692,886
2 0.41%
9,291,563
9 0.24%
8,031,907
10 0.21%
3.46% 123,244,314 3.19%
$ 3,867,398,617
115
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
2025
$14,473,779
$14,406,487
99.54%
$407,240
$14,813,727
102.35%
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%
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
116
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 1 Debt Per Capita
2025
$ -
0.00% $ -
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% -
I 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.
117
CITY OF YUCAIPA
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year Ended Former RDA Tax
June 30 Allocation Bonds 1
2025 $ -
2024 -
2023 -
2022 -
2021 -
2020 -
2019 -
2018 -
2017 -
2016 -
2015 -
2014 -
Percentage of Assessed
Value 1
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Per Capita 1
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.
118
CITY OF YUCAIPA
Direct and Overlapping Debt
June 30, 2025
2024-2025 Assessed Valuation: $ 6,386,522,866
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
06/30/25
Overlapping Debt
5.873%
$ 880,363,439
$ 51,703,745
0.060%
142,943,512
85,766
100.000%
$ -
$ -
100.000%
8,660,000
8,660,000
100.000%
785,000
785,000
100.000%
1,737,789
1,737,789
100.000%
9,024,000
9,024,000
$ 1,043,513,740 $ 71,996,300
1.869% $ 100,765,000 $ 1,883,298
1.869% 37,295,000 697,044
0.060% 21,210,000 12,726
83.258% 42,562,540 35,436,720
201,832,540 38,029,788
100.000% 5,875,000 5,875,000
100.000% $ - $ -
.p 11J,7V r,V oo
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 % 119
THIS PAGE INTENTIONALLY LEFT BLANK
120
Assessed Valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to the limit
General obligation bonds
CITY OF YUCAIPA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2025 2024 2023 2022 2021
$6,386,537,197
$ 5,971,533,500
$ 5,524,030,060
$ 5,144,060,479
$ 4,933,806,551
25%
25%
25%
25%
25%
1,596,634,299
1,492,883,375
1,381,007,515
1,286,015,120
1,233,451,638
15%
15%
15%
15%
15%
239,495,145
223,932,506
207,151,127
192,902,268
185,017,746
Legal debt margin 239,495,145 223,932,506 207,151,127 192,902,268 185,017,746 Total debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% NOTE:
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision when assessed valuation was based up 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value ( as of the most recent change in ownership for that parcel.) The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local government located within the state.
Sources:
San Bernardino County Tax Assessor
HdL
121
2020
2019
2018
2017
2016
$ 4,724,963,709
$ 4,494,991,135
4,302,239,342
4,081,532,811
3,867,398,617
25%
25%
25%
25%
25%
1,181,240,927
1,123,747,784
1,075,559,836
1,020,383,203
966,849,654
15%
15%
15%
15%
15%
177,186,139
168,562,168
161,333,975
153,057,480
145,027,448
168,562,168
153,057,480
177,186,139
161,333,975
145,027,448
0.00%
0.00%
0.00%
0.00%
0.00%
122
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
2025 $ - $ 235,000 $
316,612 $ -
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 -
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. 123
CITY OF YUCAIPA
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Income
Calendar Year
Population
(In Thousands)
2024
54,838
$ 2,090,654
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
Per Capita
Personal Income
Unemployment
Rate
$ 38,124
4.60%
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%
Sources:
State Department of Finance, HdL, State of California Employment Development Department 124
CITY OF YUCAIPA
Principal Employers
Current Year and Nine Years Ago
2025* 2015*
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. 125
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
2025 2024 2023 2022 2021
0.25 0.25
0.25 0.00
0.00 4.35
5.35 3.15
5.05 3.55
13.00 15.00
18.00 13.60
10.60 1.00
1.00 1.00
1.00 1.00
3.00 3.00
3.00 2.00
2.00 5.50
5.50 5.50
5.50 5.50
8.50 8.50
6.75 5.25
5.25 10.00
10.00 9.25
9.75 8.75
4.75 4.75
5.25 4.25
3.25 5.25
5.25 5.25
3.25 4.25
1.00 1.00
0.90 0.00
0.00 10.80
11.80 14.33
8.78 8.00
1.00 1.00
1.00 0.00
0.00 5.30
6.30 7.80
6.85 6.38
0.30 0.30
0.38 0.52
0.27 1.00
1.00 0.20
0.20 0.20
75.00 80.00
81.75 66.00
59.00 126
Function
Building and Safety:
Building Permits Issued
No. of New Dwelling Units
Parks and recreation:
Community center attendance
STARS
Camps*
Aquatics
Community Center Classes
Scherer Center Classes
Administration
New Business Licenses
Renewed Business Licenses
CITY OF YUCAIPA
Operating Indicators
by Function
Last Five Fiscal Years
Fiscal Year
2025
2024
2023
2022
2021
2,022
2,235
2,772
2,210
1,885
96 328
328
233
119
8,975
10,752
10,812
14,139
7,112
848
719
997
1,093
1,649
176
634
730
683
433
5,410
6,002
4,402
3,570
2,440
2,423
2,375
1,944
1,061
715
6,445
6,837
5,612
5,384
1,153
450
402
587
570
428
1,003
1,725
1,697
1,452
1,564
Sources:
City of Yucaipa
* Summer 2024 was the 1st season the City offered CAMP programs. 127
Function
Police:
Stations
Sub -stations
Fire:
Fire Stations
Public Works
Streets (miles)
Traffic signals (city -owned)
Roundabouts
Parks and Recreation:
Parks (acreage)
Community Centers
Performing Arts Centers
Sources:
City of Yucaipa
CITY OF YUCAIPA
Capital Asset Statistics
by Function
Last Five Fiscal Years
Fiscal Year
2025 2024 2023 2022 2021
3 3
3 3
3 229.05
229.05
229.05
227.82
227.82
32.5 32.5
32.5 32.5
32.5 4
4 4
4 4
534
534
534
534
534
2 2
2 2
2 1
1 1
1 1
128
ATTACHMENT 3
Van Lant&
VLF Fankhanel, LLP
Certified Public Accountants I
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards City Council
City of Yucaipa
Yucaipa, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Yucaipa (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 16, 2026.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Van Lant & Fankhanel, LLP
29970 Technology Drive. Suite 105 A
Murrieta. CA 92563
909.856.6879
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
I�v 4vt 4-rss9
March 16, 2026
2 ATTACHMENT 4
Van Lant&
VLF Fankhanel, LLP
Certified Public Accountants I
INDEPENDENT ACCOUNTANT'S REPORT ON AGREED -UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
City Council
City of Yucaipa
Yucaipa, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit worksheet of the City of Yucaipa, for the year ended June 30, 2025. These procedures, which were agreed to by the City of Yucaipa and the League of California Cities (as presented in the publication entitled Agreed -upon Procedures Applied to the Appropriations Limitation Prescribed by Article X1118 of the California Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City's management is responsible for the Appropriations Limit worksheet. This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. This report may not be suitable for any other purpose. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit worksheet, we added last year's limit to total adjustments and agreed the resulting amount to this year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the accompanying Appropriations Limit worksheet to the other documents referenced in #1 above.
Finding: No exceptions were noted as a result of our procedures.
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet to the prior year appropriations limit adopted by the City Council during the prior year.
Findina: No exceptions were noted as a result of our procedures.
Van Lant & Fankhanel, LLP
29970 Technology Drive. Suite 105 A
Murrieta. CA 92563
909.856.6879
We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled Article X111B of the California Constitution.
We are required to be independent of the City and to meet our ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed -upon procedures engagement.
This report 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.
However, this report is a matter of public record, and its distribution is not limited. 1�v 4't 4- ya_144�' ii),
March 16, 2026
2 CITY OF YUCAIPA
APPROPRIATIONS LIMIT COMPUTATION
2024 - 2025
Change in Per Capita Personal Income
Population Change
County Population Growth
A. Change in Per Capita Personal Income Converted to a Ratio B. Population Growth Converted to a Ratio
Calculation of Growth Factor (A x B)
2023 - 2024 Appropriations Limit $ 55,519,896
2024 - 2025 Appropriations Limit
($55,519,896 x 1.0405520) $ 57,771,341
2024-25
3.62%
0.42%
1.0362
1.0042
1.0405520
3