HomeMy WebLinkAboutItem No. 09 - Annual Comprehensive Financial Report FY Ended June 30, 2021City Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 22-009
Agenda Date: 1/11/2022 Status: Approval FinalVersion: 1
File Type: Council Consent
Calendar
In Control: City Council / Successor Agency
Agenda Number: 9)
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2021
Receive and file the Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2021
and related year-end reports.
Page 1 City of Lake Elsinore Printed on 1/6/2022
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Nancy Lassey, Finance Manager
Date: January 11, 2022
Subject: Annual Comprehensive Financial Report for the Fiscal Year Ended June 30,
2021
Recommendation
Receive and file the Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,
2021, and related year-end reports.
Background and Discussion
The Annual Comprehensive Annual Financial Report (Report) is the summarization of the City’s
financial activity for the previous fiscal year ending June 30, 2021. The report includes a
summarization of significant milestones that were accomplished during the year by department,
fiscal policies, and statistical information.
Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Lake Elsinore for
its Reports for the fiscal year ended June 30, 2015, through 2021 consecutively. To be awarded
a Certificate of Achievement, a government must publish an easily readable and efficiently
organized Report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for one year only. We believe that our current comprehensive
annual financial report continues to meet the Certificate of Achievement Program’s requirements
and have submitted it to GFOA to determine its eligibility for another certificate.
Also included, please find copies of the Auditor’s Communication Letter, the Auditor’s
Appropriations Limit Report, and the Auditor’s Internal Control Report.
Fiscal Impact
No fiscal impact.
Annual Comprehensive Financial Report
January 11, 2021
Page 2
Exhibits
A - 2021 Annual Comprehensive Financial Report
B - 2021 Auditor’s Communication Letter
C - 2021 Auditor’s Internal Control Report
D - 2021 Auditor’s Appropriation Limit Report
CITY OF LAKE ELSINORE,
CALIFORNIA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCALYEAR ENDED
JUNE 30, 2021
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CITY OF LAKE ELSINORE, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2021
Prepared by:
Department of Administrative Services
Finance Division
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CITY OF LAKE ELSINORE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letterof Transmittal .................................................................................................................................i
Governmental Finance Officers Association Certificate of Achievement
For Excellence in Financial Reporting ...............................................................................................xix
OrganizationChart................................................................................................................................xx
Directoryof City Officials......................................................................................................................xxi
LocationMap....................................................................................................................................... xxii
FINANCIAL SECTION
Independent Auditors' Report.................................................................................................................1
Management's Discussion and Analysis (Unaudited).............................................................................7
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position ........................................................................................................21
Statementof Activities..............................................................................................................22
Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet—Governmental Funds....................................................................................24
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position..............................................................................................27
Statement of Revenues, Expenditures, and Changes in Fund Balances
—Governmental Funds.............................................................................................................28
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities and Changes in Net Position........31
Proprietary Fund Financial Statements
Statement of Net Position—Proprietary Funds .......................................................................32
Statement of Revenues, Expenses, and Changes in Net Position— Proprietary Funds.........33
Statement of Cash Flows— Proprietary Funds........................................................................34
CITY OF LAKE ELSINORE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page(s)
Fiduciary Fund Financial Statements
Statement of Net Position— Fiduciary Funds...........................................................................35
Statement of Changes in Net Position — Fiduciary Funds.......................................................36
Notes to Basic Financial Statements ..........................................................................................39
REQUIRED SUPPLEMENTARY INFORMATION (Unaudited):
Budgetary Comparison Schedule Budget and Actual —General Fund..........................................99
Budgetary Comparison Schedule Budget and Actual — Low- and Moderate-Income Housing....100
Schedule of Proportionate Share of the Net Pension Liability—CalPERS Pension Plan............101
Schedule of Plan Contributions— CalPERS Pension Plan ..........................................................102
Schedule of Changes in the Total OPEB Liability and Ratios......................................................103
Notes to Required Supplementary Information ............................................................................104
SUPPLEMENTARY INFORMATION
Combining Balance Sheet— Nonmajor Governmental Funds............................................................110
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances— Nonmajor Governmental Funds..........................................................................120
Budgetary Comparison Schedules—Special Revenue Funds:
Supplemental Law Enforcement Service .....................................................................................129
TrafficOffender.............................................................................................................................130
GasTax........................................................................................................................................131
TransportationMeasure A............................................................................................................132
SB1186CAS Education ...............................................................................................................133
TrafficSafety.................................................................................................................................134
City-Wide Lighting and Landscaping............................................................................................135
L.L.M.D No. 1................................................................................................................................136
Geothermal...................................................................................................................................137
AB2766 Air Pollution.....................................................................................................................138
C.D.B.G ........................................................................................................................................139
Developer Agreement Revenue/Trust..........................................................................................140
Affordable Housing In-Lieu...........................................................................................................141
City Hall / Public Works................................................................................................................142
CommunityCenter........................................................................................................................143
LakesideFacilities........................................................................................................................144
AnimalShelter..............................................................................................................................145
N.P.D.E.S .....................................................................................................................................146
PEGGrant....................................................................................................................................147
PedestrianSidewalk.....................................................................................................................148
CITY OF LAKE ELSINORE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page(s)
Lake Destratification and Water Fund..........................................................................................149
Budgetary Comparison Schedules— Capital Projects Funds:
Capital Improvement Plan ............................................................................................................150
Miscellaneous General Project.....................................................................................................151
ParkQuimby Development...........................................................................................................152
StormDrains.................................................................................................................................153
LibraryFacilities............................................................................................................................154
TrafficImpact................................................................................................................................155
FireFacilities.................................................................................................................................156
Public Improvement In-Lieu..........................................................................................................157
Total Road Improvement Program...............................................................................................158
TUM F............................................................................................................................................159
Budgetary Comparison Schedules— Debt Service Funds:
PublicFinancing Authority............................................................................................................160
RecreationAuthority.....................................................................................................................161
Facilities Financing Authority........................................................................................................162
Budgetary Comparison Schedules— Permanent Funds:
Endowment Trust—Adolph Korn..................................................................................................163
Internal Service Funds:
Combining Statement of Net Position...........................................................................................166
Combining Statement of Revenues, Expenditures, and Changes in Net Position.......................168
Combining Statement of Cash Flows...........................................................................................170
Fiduciary Funds:
Combining Statement of Fiduciary Net Position — Private-Purpose Funds..................................174
Combining Statement of Changes in Net Position — Private-Purpose Funds..............................175
CITY OF LAKE ELSINORE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page(s)
STATISTICAL SECTION (Unaudited)
NetPosition by Component................................................................................................................ 180
Changesin Net Position..................................................................................................................... 182
Fund Balances, Governmental Funds................................................................................................ 186
Changes in Fund Balances, Governmental Funds............................................................................. 188
Tax Revenues by Source, Governmental Funds ............................................................................... 191
Taxable Sales by Major Industry Groups........................................................................................... 192
Direct and Overlapping Property Tax Rates....................................................................................... 194
Principal Property Taxpayers ............................................................................................................. 195
Property Tax Levies and Collections.................................................................................................. 197
Assessed Value and Estimated Value of Taxable Property............................................................... 198
Ratios of Outstanding Debt by Type...................................................................................................200
Direct and Overlapping Bonded Debt.................................................................................................202
Legal Debt Margin Information...........................................................................................................204
Pledged-Revenue Coverage—Sanitary District Fund........................................................................206
Demographic and Economic Statistics ..............................................................................................207
PrincipalEmployers............................................................................................................................208
Full-time Equivalent City Government Employees by Function/Program ..........................................209
Operating Indicators by Function/Program.........................................................................................210
Capital Asset Statistics by Function/Program ....................................................................................213
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CITY or
LADE LSIROKE
DREAM EXTREME-
December 29, 2021
To the Honorable Mayor, Members of the Governing Council and Citizens of the City of Lake Elsinore:
We are pleased to submit the June 30, 2021, Annual Comprehensive Financial Report (ACFR)for the City
of Lake Elsinore (City). This report is published in accordance with local ordinance and state law
requirements that financial statements be presented in conformity with generally accepted accounting
principles(GAAP)and audited in accordance with generally accepted auditing standards by an independent
public accounting firm of licensed certified public accountants.
The City has adopted the reporting provisions of Governmental Accounting Standards (GASB) Statement
No. 1, which established the authoritative status of the pronouncements of its predecessor, the National
Council on Governmental Accounting (NCGA), as well as, the accounting and financial reporting guidance
contained in the Industry Audit Guide, Audits of State and Local Governmental Units, issued by the
American Institute of Certified Public Accountants. Through widespread acceptance, pronouncements of
the NCGA, GASB and the AICPA through its Industry Audit Guide, have long been acknowledged as the
primary authoritative statements of GAAP applicable to state and local government.
This report contains management's representations concerning the City's finances. Management assumes
full responsibility for the completeness and reliability of the information presented and that it is reported in
a manner that fairly presents the financial position and operations of the City. Because the cost of internal
control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute,
assurance that the financial statements are free of any material misstatements. To provide a reasonable
basis for making these representations, and assurance that the financial statements will be free from
material misstatement, City management has established a comprehensive internal control framework
designed both to protect its assets and to compile sufficient reliable information to prepare the City's
financial statement in conformity with GAAP.
The significant accounting policies of the City are described in the notes to the financial statements. These
accounting policies have been reviewed by the City's independent certified public accountants and conform
to the recommendations of GASB.
As required by GAAP, the Management's Discussion and Analysis (MD&A) immediately follows the
independent auditor's report and provides a narrative introduction, overview, and analysis of the basic
financial statements. MD&A complements this letter of transmittal and should be read in conjunction.
Independent Audit
State statutes require an annual audit by independent certified public accountants. Lance, Soll, &Lunghard
(LSL), LLP., a firm of licensed certified public accountants, has audited the City's financial statements. The
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Honorable Mayor and City Council
December 29, 2021
goal of the independent audit is to provide reasonable assurance that the City's financial statements are
free of material misstatement. The independent audit firm has concluded that there was a reasonable basis
for rendering an unmodified opinion that the City of Lake Elsinore's financial statements for the year ended
June 30, 2021, are fairly presented in conformity with GAAP. Their report is presented as the first
component of the financial section of this report.
Financial Reporting Entity
For financial reporting purposes, in conformance with the criteria of GASB "Defining the Governmental
Reporting Entity," this report includes the operating statements and statements of financial position of the
City of Lake Elsinore,the Lake Elsinore Public Financing Authority,the Lake Elsinore Recreation Authority,
and the Facilities Financing Authority. While each is a separate legal entity, the City Council, acting as
Council and Board of Directors, exercises oversight responsibility for each. Each was organized for the
benefit of the City and its residents and conducts all activity within its boundaries. They are therefore shown
as blended Component Units within the Financial Statements. The Public Financing Authority,the Facilities
Financing Authority, and the Recreation Authority are reported as Debt Service Funds.
The City, as the Successor Agency to the Redevelopment Agency, continues to carry out remaining
activities of the Redevelopment Agency. Because of the dissolution of the Redevelopment Agency of the
City of Lake Elsinore, the agency is presented as a private purpose trust. Successor Agency trust
information is disclosed in the notes to the financial statements (Note No. 18).
City Profile
Incorporated in 1888, the City of Lake Elsinore is in the Elsinore Valley of Western Riverside County on
Historic Highway 395. Elsinore Valley is centralized with about an hour to two hours' drive between major
anchor cities such as San Diego, Los Angeles, Orange County, Palm Springs, and Big Bear. Serving a
population of 64,762, the city limits fall on the Easterly shores of Lake Elsinore, the largest natural
freshwater lake of Southern California. The City currently occupies 42 square miles with 5 square miles
being water. Residents enjoy perfect climate, blue sky, clean air, world-famous thermal winds for aerial
sports, water sports, and off-road motor sports. All of this is set against the spectacular Cleveland National
Forest, providing opportunities for hiking, biking, bird watching or relaxing in the beauty that abounds in this
outdoor recreation destination.
The City is incorporated as a general law city with a council/manager form of municipal government, which
consists of five council members who are elected to four-year staggered terms. The City is a By-District
election system with five Districts. The mayor and mayor pro-tem are honorary positions filled by council
members for one-year terms. The Council is responsible for setting policy and approving actions to carry
out the functions of municipal government. The City is empowered to levy property tax on real property
located within the city limits. It also is empowered by state statute to extend its corporate limits by
annexation, which has been done from time to time.
Termed the "Action Sports Capital of the World", management works to support sports on and around the
lake. Centrally located within the city limits, lays our 3,000 surface-acre recreational lake with campgrounds
and boat launches where water sport players can play. Some events centered around the lake include
fishing tournaments, kids fishing derby, National Water Ski races,jet skiing, kite surfing, and boat sailing.
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Honorable Mayor and City Council
December 29, 2021
Within the city limits, citizens and visitors can play at the: Skylark Field Airport (CA89), an airport for
skydiving, airplane gliding, and airplane flying. Links at Summerly, a championship 18-hole"Scottish Links"
golf course, dining, and an event venue for celebrations.
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Owned by the City, residents can visit our Diamond Stadium, a state-of-the-art baseball facility with the
capacity of 14,000 spectators. Home base for the Storm Minor League Baseball Team, other events are
held such as high school graduations, music concerts, off-road vehicle races, car shows, drive-in concerts,
and movies, and more. The Diamond Club facility within the Stadium can be rented as a venue for
banquets, weddings, and seminars and provides event catering.
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December 29, 2021
Following the sports theme, citizens and visitors have access to our Rosetta Canyon Sports Park,
Southern California's premier softball and multi-sport facility designed with a 5-tournament caliber color-
coded softball field with synthetic turf. The park includes a CIF football/soccer field with synthetic turf,
jogging pathways, two-story concession stand with observation deck, dog park, and community garden.
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For boating enthusiasts, visitors can experience water sports by launching their vessels, paddle boards,
canoes, or jet skis at the Launch Pointe Recreation Destination & RV Park. The launch facility provides
docks for launching, parking, restrooms, covered picknick areas, and access to the beach. Visitors can
dine at The Bobber Restaurant or shop at the Bait&Tackle Shop. If you do not have a boat, you can rent
one at Launch Pointe! Boat Rentals include fishing boats to luxury pontoon boats with reservations made
online.
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Honorable Mayor and City Council
December 29, 2021
Visitors can experience the City owned campground, Launch Pointe Recreation Destination & RV Park,
located on the North shore of the Lake. This resort includes amenities such as picnic areas, shade
structures, splash pad, playground, pool, RV hookups, RV or boat storage, laundry facility, administrative
building, gift shop, and a large community hall. The resort also provides a private beach for guests. This
lovely resort also includes Vintage Village a vintage trailer area with a central fireplace in which vintage
trailers can be rented by groups or individually. Yurt Village provides rentable furnished yurts of various
sizes.
Launch Pointe Recreation Destination &RV Park
Launch Pointe's Community Hall is available for events such as weddings, banquets, or parties and
includes a barbeque, full kitchen, fireplace, and viewing deck of the lake.
Launch Pointe Community Hall Venue
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Honorable Mayor and City Council
December 29, 2021
Lake Elsinore is home of the famous Elsinore Grand Prix; a dirt-bike race that takes place through the
streets of Old Town Lake Elsinore and around the Lake Elsinore area. This event became popular in the
1960s and early 1970s, drawing the likes of dirt-bike greats such as Malcolm Smith and Steve McQueen,
to name a few. The race has always been set as an open format in which anyone can ride. In 1971, the
documentary movie On Any Sunday by Bruce Brown included scenes from the Elsinore Grand Prix. This
epic race festival is typically held around mid-November over a three-day weekend.
For those who like to just ride any day, citizens and visitors can visit the Lake Elsinore Motorsports Park
located near the airport. Exclusively at Lake Elsinore, riders can now experience a new way to ride with
LITPro Leaderbaords where"Every day is race day"and a rider's progress with lap times can be measured.
This park offers track options such as Main, Intermediate Vet, Vet, 60-80, and Peewee tracks.
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Lake Elsinore Motorsports Park
The City skate parks serve skateboarding, scooter, and BMX enthusiasts at two locations. The Summerly
Community Park, the newest skate park is a 10,000 feet concrete park perfect for all riders and skill levels
and the Skate Zone at Serenity Park provides a fun bowl complete with 4" mini-ramp sections, rounded
hips and a 6'circular deep end for carving. Flowing eastward, the skatepark features street-inspired terrain
addressing the full spectrum of skill levels. Additionally, Serenity includes a Pump Track, ideal for BMX
enthusiasts.
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Honorable Mayor and City Council
December 29, 2021
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Lake Elsinore Summerly Skate Park
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Lake Elsinore Serenity Skate Park
The City provides a range of municipal services for citizens throughout the community that include
maintenance of 22 parks, 3 public beaches, fire prevention, code enforcement, animal services, planning
and development, building inspections, licenses and permits, construction and maintenance of streets,
right-of-way landscaping maintenance, traffic and street lighting, capital improvements, general
administration, recreational services, cultural activities, and lake services. The City contracts with
Riverside County for both Police and Fire services. The Lake Elsinore Unified School District provides
25 schools for approximately 21,801 students within the city limits and sphere of influence areas.
Elsinore Valley Municipal Water District provides water and sewer services.
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Honorable Mayor and City Council
D •- • 2021
Lake Elsinore's 2019 Super Bloom of California Poppies at Walker Canyon
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December 29, 2021
Local Economy
The City offers easy access to major freeways, available industrial and commercial land, quality labor force
of both skilled and semi-skilled workers,and an economic philosophy of assisting local businesses for future
growth. The region's geographic location, competitive cost structure and sophisticated logistics facilitates
one of the fastest growing communities in the area. The City's median age is 30.6 with a per capital
personal income of$24,169. As shown in Chart 1, this is a slight increase from the prior year of$22,837
with the unemployment rate at 10.1%, which is up from the prior year of 3.9%. The median housing price
in the City is approximately$485,000,which is a median increase of 16.87%from the prior year.The median
price paid for Riverside County homes is in the$537,500 range,which is a 27.36% increase from $422,000
in June 2020.
Chart 1.
Unemployment Rate and Population
1 6.0% 67.500
1 4.0% 65.000
2 1 2.0% 2
.a 62.500 Yv
a �
1 0.0% a
d 60.000 d
57.SOO c
a 6.0%
LW
4.0%
SS.000
J
2.0% >: 52.500
0.0% 50.000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal Year
t Unemploymant Rate Population
The TOT revenue is the City's 10% tax received for short-term rental properties such as (but not limited to)
hotels, motels, vacation homes, and RV parks. The City experienced a decrease of 15.83% in the transient
occupancy tax (TOT) revenues for a total of $550,508 for the fiscal year from $654,044 of the prior year
(shown in Chart 2 ); however, the prior year experienced a one-time payment of$155,000. This concludes
that for the prior year the TOT revenue was not the norm and is more inline this year.
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Honorable Mayor and City Council
December 29, 2021
Chart 2.
City of Lake Elsinore
Transient Occupancy Tax Revenues for the Last Ten Years
$700
$600 —
$500 —
"' $400 —
s° $300
$200
.$100
So
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year
i
The City's Economic Development Department works with the Chamber of Commerce and the
Visitor's Bureau in effort to encourage the expansion and relocation of industries that generate local sales
tax and employment opportunities. The City's sales tax revenue, the largest general fund revenue,
experienced a significant increase of sales overall of 66% as shown in Chart 3. Of the total amount of$18
million includes the City's new Measure Z sales and use tax as well as an increase in Retail Sales Tax
shown in Chart 4.
Chart 3.
City of Lake Elsinore
Percentage Change of Revenue from PriorYear
70%
60% 66%
u 50%
7
p 40%
30%
20% b ro 6%
10%
m 10% 4% 3%
s
7%
-20%
2012 2011 2014 2015 2016 2017 2018 1019 2020 2021
Fiscal Year
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Honorable Mayor and City Council
December 29, 2021
Chart 4.
City of Lake Elsinore
Sales Tax Revenues for the Last Ten Years
20,DOO
18,DOD
15,DOD
14,DOD
N
0 12,DOD
10,Do6
t 8,D0o —
6,D00
4,D00
2,000
0
2011 2032 1013 2014 2015 2016 2017 2018 1019 2010 N21 2022
Fiscal Year
On the November V,2020 ballot, the City of Lake Elsinore Citizens voted in favor of Measure Z, a locally
controlled one-percent on transactions and use tax to generate unrestricted general fund dollars to address
city service, public safety, and local recovery needs. Measure Z added $3.5 million of additional revenue
and Retail Sales Tax added an additional $3.7 million from the prior year as shown in Chart 5.
Chart 5.
Sales Tax by Type
s2n,nnv,Doa
$17,500.000
$15,000,000
$12.500.000
$10.000.000
$7,500,DD0
$5,On0,000
sz,sna,vvo
s-
2012 2013 2014 201S 2016 2017 2016 2019 2020 2021
■Retail Sales&Use Tax ■Public Safety 112%Sad es Tax ■Retail Sales&Use Tax Measure I Sades&Use Tax-Triple Flip
The City's total governmental funds experienced an increase in net position because of a decrease in
expenditures and an increase in revenue overall as reflected in the Chart 6. The decrease in expenditure
resulted from a reduction in debt service by $6.6 million from the refunding of several bond issues as
discussed in Note 8 while the increase in revenue resulted from the increase in retail sales tax.
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Honorable Mayor and City Council
December 29, 2021
Chart 6.
City of Lake Elsinore
Revenues and Expenditures of Governmental Funds
$1 40.000
$120.000 s i .- -a
$1 00.000
o $80,000
sa0,000
4 $40,000
$20,000
so
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal Year
--s—Revenues fExp a nd i[u re
Taxable property net assessed values continue to grow with only a little more than 1/3 built out as shown
in Chart 7. The 2/3 of vacant land includes open frontage along California's Interstate 15 Highway available
for commercial development. This continual rise constitutes a 5.58% increase from prior year.
Chart 7.
City of Lace Elsinore
Taxable Property Net Assessed Value
8,000,000 -
7,000,000
6,000,000
5.000,000 -
0
W 4,000,000 —
3,000,000
2,000,000
1,000,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal Year
The City's General Fund, the main operating fund used to account and report financial resources not
accounted for in another fund experienced an increase in revenues by 15% while the general fund
expenditures increased by 3% for the fiscal year as shown by Chart 8 below. This chart reflects how the
City experiences continued growth of the local economy. As the City grows, revenue increases as does
the required level of service to the Citizens. This chart also demonstrates compliance with budgetary
controls by"living within the means."
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Honorable Mayor and City Council
December 29, 2021
Chart 8.
City of Lake Elsinore
Revenues and Expenditures of the General Fund
$50MO
$4s,000
$4 0,000
r
a
535,000 F
C
_ s3a,vav 0 ittl
$25,000
$20,000A
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal Year
n Revenues ■Expenditures
Coronavirus Pandemic
In FY19-20, the City took immediate and dramatic steps to address the COVID-19 pandemic, this included
measures to contain the virus and to mitigate its impacts including the financial hardships created by
unemployment's and lost business opportunities. Costs for the City increased as the City modified all
facilities to address possible health and safety issues that may rise from the pandemic.
At the close of FY20-21 the City experienced ongoing financial challenges created by the COVID-19
pandemic resulting from the statewide Stay-at-Home order to reduce the spread of COVID-19. With the
Stay-at-Home order, the City experience an increase in unemployment; contrarywise, sales tax revenue in
all major industry groups increased. The largest industry was general consumer goods with auto sales
move down to second (normally first). Some industry with the lower increase was fuel and service stations
which is related to less people commuting and staying home. The City fared well compared to other Cities
within the Riverside County.
As we move forward in the FY21-22, the City has been and will continue to monitor any changes to
pandemic assumptions and economic factors and will adjust. The City anticipates economic factors will
reduce City revenues, which will result in scaling back on capital projects. The City will continue to follow
State mandated orders that address the pandemic.
Things to Come
Through the Capital Improvement Plan, the City's Ultimate Railroad Canyon and Interstate 15 Interchange
project is still under construction. This project serves to improve traffic flow and safety of our major route
to Menifee Valley and the Interstate 215. Currently the new north bound off ramp is complete and in use
with the new north bound on ramp is nearing completion.
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Honorable Mayor and City Council
December 29, 2021
The Downtown Active Transportation Connections and Urban Greening Project will cure existing
infrastructure gaps and vacant parkways with the planning of 272 high carbon sequestering shade trees,
water efficient vegetation, and drainage infrastructure in parkways. In addition, this project will complete a
one-mile loop around downtown core extending from Main Street to Pottery Street, across the proposed
bridge to the Riverwalk Trail, down the Riverwalk Trail to Graham Avenue, and back to Main Street. This
project will also include lighting for Spring Street which will assist with the safety and mobility of
improvements to the area.
The Main Street Interchange project will provide improvements to Main Street from two(2) lanes to four(4),
improvements to the Interstate 15 off-ramps and on-ramps, widening the intersection of the southbound
off-ramp. Additionally, traffic signals will be installed at the ramps, and at the intersection of Camino Del
Norte and Main Street.
The Collier Avenue pavement rehabilitation project includes grind and overlay, pavement reconstruction,
and striping along Collier Avenue between Riverside Drive and Nichols Road.
Vision Statement and Major Initiatives
The City Council's visionary statement as shown below, guides Council and Staffs focus with Council's
budgetary initiatives. The vision statement is also used as a tool in the employee selection and hiring
process, a guide in conducting city business, a statement to the citizens affirming what the City as an
organization stands for, and the level of service citizens can expect from the City.
"The City of Lake Elsinore will be the ultimate lake destination where all can live, work,
play, build futures, and fulfill dreams."
Council's "Dream Extreme" motto coupled with economic development facilitates goals to become the
ultimate lake destination. After all, we are the Action Sports Capital of the World where our residents and
visitors can Dream Extreme. The City Council's budgetary and legislative priorities are updated annually
and are included in the Operating Budget. With the vision statement of focus on the "lake" and "play,"
Council's directive includes building recreation facilities and supporting sport venues.The budget guidelines
for FY20-21 were presented in the Operating Budget as fiscal stability and community responsibility as they
relate to the City's vision statement and Council's established strategic key initiatives for the fiscal year.
• Public Safety
• Recreation
• Transportation
• Economic Development
• Education and Services
xiv
Honorable Mayor and City Council
December 29, 2021
Long-Term Financial Planning
Dream Extreme 2040 Plan
Each fiscal year, the annual operating budget is proposed after a considerable review process in which
staff and Council identify budget priorities, immediate and future fiscal issues, community needs, and the
resources required to enhance capital programs and services within the City in order to maintain a strong
community. With the five-year forecast section, revenue and expenditure projections are developed to
identify future impacts of proposed staffing and program changes, as well as the impact of capital
improvement projects. The annual budget serves not only as a financial plan for the immediate future, but
also as a management and communication tool outlining the City Council's vision and key initiatives for the
year that make the City the desirable place as the vision statement outlines.
The City Council previously identified an objective of developing and maintaining a reserve in the
General Fund for economic uncertainties and contingencies. This is reviewed during the budget process
with the revenue and expenditure forecasting and is currently set at 17.5%.
The objective of budgetary control is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Council and various Boards. Budgets are adopted for the
General Fund, Special Revenue Funds,Assessment Districts, Internal Service Funds, Debt Service Funds,
Capital Improvement Project Funds, and Enterprise Fund. The annual five-year budget is presented to
Council for adoption prior to the beginning of each fiscal year. The budget is prepared by fund, function
(e.g. community services), and department (e.g., recreation). The level of budgetary control is maintained
at the department level in which Department heads may transfer resources within a department as they
see fit. Transfers between departments or funds; however, need special approval from Council.
Also presented annually to address changing needs, Council reviews and approves a five-year budget for
the Capital Improvement Plan (CIP). The CIP budget serves as a planning tool to coordinate level ranking,
financing, and scheduling of major projects undertaken by the City. The City Council holds a budget
workshop to facilitate discussion, public comments, and detailed review of each proposed project. Projects
are carefully programmed to ensure the Community's capital improvement needs are met both now and in
the future. Projects are designed to provided additional opportunities and access to the City and improve
the overall quality of life. The level of budgetary control for CIP is maintained at the project level and the
expenditure object level.
Internal Controls
Internal accounting controls are designed to provide reasonable assurance regarding the safeguarding of
assets and the reliability of financial records and maintaining accountability of assets. To facilitate reporting,
budgetary control is maintained through computer approval paths for all financial transactions of all funds
as well as computer-generated reports. Capital Project expenditures are also controlled at the project level.
Encumbrance accounting is utilized to ensure effective budgetary control; purchase orders and contracts
are reviewed, and a determination is made that valid and sufficient appropriations exist for payment for
ordered goods and services. Encumbrances outstanding at year-end do not constitute expenditures or
liabilities. Unencumbered appropriations lapse at year-end, and encumbrances outstanding at that time
are reported as a reserve of fund balance for subsequent year expenditures.
xv
Honorable Mayor and City Council
December 29, 2021
The concept of reasonable assurance recognizes that the cost of control should not exceed its benefits.
The evaluation of this cost benefit relationship rests with management. To provide a reasonable basis for
making these representations, management of the City has established a comprehensive internal control
framework designed both to protect the government's assets from loss, theft, or misuse, and to compile
sufficient reliable information for the preparation of the financial statements in conformity with GAAP.
All internal control evaluations occur within the bounds as described. We believe that the City's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of
financial transactions.
xvi
Honorable Mayor and City Council
December 29, 2021
Fund Descriptions
Table 1 below shows the various fund types used by the City and included in this report. Descriptions of
them are included in the Note's to the Financial Statements.
Table 1.
CITY OF LAKE ELSINORE
FUND DESCRIPTION
GOVERNMENT FUNDS
General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Permanent Fund
PROPRIETARY FUNDS
Enterprise Fund:
Launch Pointe
Internal Service Funds:
Insurance Services
Information Systems Services
Support Services
Fleet Services
Facilities Services
FIDUCIARY FUNDS
Private-purpose Trust Funds
Custodial Funds
xvii
Honorable Mayor and City Council
December 29, 2021
Awards and Acknowledgements
Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Lake Elsinore for its
comprehensive annual financial report for the fiscal year ended June 30, 2021. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently organized annual
financial report. This report must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
The preparation and development of this report would not have been possible without the special efforts of
the entire Administrative Services Department. We wish to express gratitude to all those staff members of
both the City and independent auditors who were associates with the preparation of this report.Additionally,
we express our appreciation to the Finance Division staff for their dedicated service and contribution to the
department during the fiscal year. Their efforts are reflected in this report and in other documents resulting
from the annual financial management process. We would like to thank the Mayor, City Council,
City Treasurer, and City Manager for their interest and support in planning and conducting the financial
operations of the City.
Respectfully submitted,
Jason Simpson
City Manager
xviii
Honorable Mayor and City Council
December 29, 2021
Government Finance Officers Association
Certificate of
I Achievement
for Excellence
in Financial
Reporting
Presented to
City- of Lake Elsinore
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30.2020
Eaecutvm DirectoriCEO
xix
Honorable Mayor and City Council
D- .- • 2021
CITY ORGANIZATION a t
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Honorable Mayor and City Council
December 29, 2021
CITY OF LAKE ELSINORE
DIRECTORY
ELECTED OFFICIALS
Robert E. Magee, Mayor
Timothy J. Sheridan, Mayor Pro-Tern
Steve Manos, Councilmember
Natasha Johnson, Councilmember
Brian Tisdale, Councilmember
Allen P, Baldwin. Treasurer
i Elected to four-year staggered termsl
ADMINISTRATION
Jason Simpson, City Manager
Nicole Dailey, Deputy City Manager-
Barbara Leibold, City Attorney
Candice Alvarez, City Clerk
Andrew Elias, Police Chief
Lonny Olson, Fire Chief
Remon Habib, City Engineer
Johnathan Skinner, Director of Community Services
Vacant Position, Director of Community Development
ACFR TEAM
Jason Simpson, City Manager
Shannon Buckley, Administrative Services Director
Nancy Lassey, Finance Manager
Andrew Zavala, Sr. Accountant
Domenico Piazza, Sr. Accountant
'As of December 2021
xxi
Honorable Mayor and City Council
December 29, 2021
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INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of City of Lake Elsinore,
California, (the City) as of and for the year ended June 30, 2021, 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
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of Lake Elsinore, California, as of June 30, 2021,
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 (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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 fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a
going concern for twelve months beyond the date of the financial statements.
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To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement,whether due to fraud or error, and to issue an auditor's report that includes
our opinion. 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 the GAAS and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if, there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error,and design and perform audit procedures responsive to those risks.Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the 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.
Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, the budgetary comparison schedules for the general fund and low moderate
income housing, the schedule of proportionate share in net pension liability, the schedule of plan
contributions, and the schedule of changes in the total OPEB liability and related ratios 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.
2
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To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
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 combining and individual nonmajor fund financial
statements and schedules are presented for purposes of additional analysis and are not a required part of
the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the 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 and individual
nonmajor fund financial statements and schedules 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 section and statistical section but does not include the basic financial statements
and our auditor's report thereon. Our opinions on the financial statements does 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 financial statements, our responsibility is to read the other information and consider whether a
material inconsistency exists between the other information and the financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in
our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December
29, 2021 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 solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the City's internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the City's internal
control over financial reporting and compliance.
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City of Lake Elsinore, California
Management's Discussion and Analysis
June 30, 2021
As management of the City of Lake Elsinore (City), we offer readers of the City's financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021.
We encourage readers to consider the information presented here in conjunction with the transmittal letter
already presented at the front of this report and the City's financial statements immediately following this
section.
FINANCIAL HIGHLIGHTS
■ The Measure Z Sales and Use Tax passed and went into effect on April 1, 2021. The City received
$3.5 million for the last quarter of the fiscal year.
■ The City's capital asset, net of depreciation, increased by $3.8 million resulting from increased road
improvements, park improvements, infrastructure improvements. Extraordinary facility improvements
were completed because of health and safety reasons resulting from the Coronavirus.
• Capital assets, construction in progress increased 137.0% resulting from the purchase and rehab of
housing property and the purchase and remodel of industrial property. The housing project funded by
the Homeless Emergency Aid Program and Project Homekey grants. The industrial property, located
next-door to our Public Works Yard, is in the process of being remodeled for the future Public Works
Administration Building.
■ At the end of the current fiscal year, unassigned fund balance for the General Fund was $13.7 million
or 32.8% of total General Fund expenditures. City Council has designated 17.5% or$2.5 million of the
$13.7 million for future contingencies.
■ The City of Lake Elsinore's total long-term debt had a net decrease of$13.7 million during the current
fiscal year. The net decrease is due to a full and partial redemption of bonds.
■ The City's assets and deferred outflows of resources exceeded its liabilities and deferred inflows of
resources at the close of the most recent fiscal year by $265,033,416, which is 9.9% increase in net
position.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis section is intended to serve as an introduction to the City's basic financial
statement, designed to communicate the information in an easily readable form. The City's Annual
Comprehensive Financial Report (ACFR) is intended to provide the reader with information of the City's
financial condition, results of operation, and accountability.
The City's basic financial statements comprise of three components: (1) government-wide financial
statements, (2)fund financial statements, and (3) notes to the basic financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
7
Management's Discussion and Analysis
June 30, 2021
Government-wide Financial Statements -Continued
The government-wide financial statements are designed to provide the reader with a broad overview of the
City's finances, in a manner of private-sector businesses. These statements are presented in the accrual
basis to reveal if resources were used efficiently and effectively to meet operating objectives.
The statement of net position presents information on all the City's assets, liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City of
Lake Elsinore is improving or deteriorating.
The statement of activities presents information showing how the government's net position changed during
the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave). The governmental activities of the City include
general government, public safety, community development, public services, and community services.
The government-wide financial statements include not only the City itself (known as the primary
government), but also three legally separate entities, the Lake Elsinore Public Financing Authority and the
Lake Elsinore Recreation Authority, and the Lake Elsinore Facilities Financing Authority. The City is
financially accountable for these entities and financial information for these blended component units is
reported within the financial information presented for the primary government itself. The government-wide
financial statements can be found on pages 17-19 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the
City of Lake Elsinore can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental funds financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near-term financing requirements.
8
Management's Discussion and Analysis
June 30, 2021
Governmental Funds—Continued
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar information
presented for governmental activities in the government-wide financial statements. By doing so, readers
may better understand the long-term impact of the government's near-term financing decisions. Both the
governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities. The basic governmental fund financial statements can be found on pages 20-
27 of this report.
The City maintains various individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances. The following funds are considered major funds: General Fund, Low- and
Moderate-Income Housing
Special Revenue, Capital Improvement Plan Capital Projects, Public Financing Authority Debt Service, and
Recreation Authority Debt Service. Data from other governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these other governmental funds is provided in
the form of combining statements in the Supplementary Information section of this report.
Because the City adopts an annual appropriated budget for its General Fund, certain Special Revenue
Funds,Assessment District Funds, Capital Project Funds, Debt Service Funds, and Internal Service Funds;
a budgetary comparison statement is provided to demonstrate compliance with the budget.
Proprietary funds. The City maintains two types of proprietary funds to report: an enterprise fund and
various internal service funds. The City uses an enterprise fund to account for the Launch Pointe
Recreation Destination & RV Park in which fees are charged to external users for goods or services that
are designed to cover costs of providing these goods and services. Enterprise funds are used to report
business-type activities in the government-wide financial statements. The basic proprietary fund financial
statements can be found on pages 28-30 of this report.
Internal service funds are an accounting device used to accumulate and allocate costs internally among
the City's various functions. The City uses internal service funds to account for its self-insurance activities,
information technology systems, support systems, fleet services, and facilities services. Because these
proprietary funds benefit governmental functions, they have been included within governmental activities in
the government-wide financial statements. The internal services funds and the enterprise fund are
separated out into two columns in the proprietary fund financial statements on pages 28-30 of this report.
Individual fund data for the internal service funds is provided in the form of combining statements on pages
156-162 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefits of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statement because the
resources of those funds are not available to support the City of Lake Elsinore's own programs. The
9
Management's Discussion and Analysis
June 30, 2021
accounting used for the fiduciary funds is much like that used by the proprietary funds, accrual basis of
accounting. The basic fiduciary fund financial statements can be found on pages 35-36 of this report.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the basic financial statements can be found on pages 39-96 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information. Required supplementary information can be found starting on pages
99-104 of this report. Immediately following the required supplementary information, the supplementary
schedules present the governmental fund statements. Combining and individual fund statements and
schedules can be found on pages 110-118 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial position.
As shown in Table 1, City's assets and deferred outflows of resources exceeded liabilities and deferred
inflows of resources by$265.0 million at the close of the most recent fiscal year. For the City, 67.9%of the
net position reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, and
infrastructure), less any related debt used to acquire those assets that is still outstanding. The City uses
these capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net position, 99.4%, represents resources that are subject to external
restrictions on how they may be used. The deficit balance of$178.4 million is unrestricted net position and
reflects the fact that governmental activities raise resources based on when liabilities are expected to be
paid, rather than when they are incurred. Most governments do not have sufficient current resources on
hand to cover current and long-term liabilities. The deficit in and of itself should not be considered an
economic or financial difficulty; however, it does measure how far the City has committed the government's
future tax revenues for purposes other than capital acquisition. The City's total net position increased by
$23.7 million primarily a result from capital improvement construction such as The Anchor and the
Public Works Administration Building. The increase in current and other assets by$1.5 million is a result of
increased improvements of the City's facilities, capital improvement projects. Some improvements relate
to the Coronavirus pandemic building safety measures.
10
Management's Discussion and Analysis
June 30, 2021
GOVERNMENT-WIDE FINANCIAL ANALYSIS—Continued
City of Lake Elsinore
Table 1
Condensed Statement of Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Assets:
Current and other assets $316,519,758 $316,494,274 $ (8,278,190) $ (9,741,832) $308,241,568 $306,752,442
Capital assets 186,312,196 182,010,207 26,613,234 27,049,079 212,925,430 209,059,286
Total Assets 502,831,954 498,504,481 18,335,044 17,307,247 521,166,998 515,811,728
Deferred Outflows of Resources 11,321,847 7,089,686 173,094 71,855 11,494,941 7,161,541
Liabilities:
Long-term liabilities 237,970,750 248,530,953 1,067,514 481,260 239,038,264 249,012,213
Other liabilities 26,015,043 32,002,125 347,065 224,805 26,362,108 32,226,930
Total Liabilities 263,985,793 280,533,078 1,414,579 706,065 265,400,372 281,239,143
Deferred Inflows of Resources 2,179,084 3,221,156 49,067 58,274 2,228,151 3,279,430
Net Position:
Net investment in capital 153,408,107 147,522,397 26,613,234 27,049,079 180,021,341 174,571,476
Restricted 263,683,834 105,362,660 - - 263,683,834 105,362,660
Unrestricted (169,103,017) (31,045,124) (9,568,742) (10,434,316) (178,671,759) (41,479,440)
Total Net Position $247,988,924 $221,839,933 $ 17,044,492 $ 16,614,763 $265,033,416 $238,454,696
Table 2 presents the Statement of Activities and provides details of how the City's net position changed
from the prior year from governmental activities. Generally, it indicates whether the financial health of the
City is better or worse from the prior year. The cost of all governmental activities in fiscal year 2021 was
$74.7 million, which was recovered through program revenues, taxes, and investment earnings of
$95.8 million. Figure 1 shows expenses in relation to program revenues while Figure 2 shows the makeup
of revenues. Revenue increased by $12 million overall with a significant increase in funding from
contributions and charges for services.
Property, sales, transient occupancy, and franchise tax revenues increased overall by $7.9 million, the
Measure Z sales tax contributed mostly to the increase. Even though expenses decreased overall by
3.30%, revenues also increased overall facilitating the increase in net position by 12.14%.
11
Management's Discussion and Analysis
June 30, 2021
GOVERNMENT-WIDE FINANCIAL ANALYSIS—Continued
City of Lake Elsinore
Table 2
Statement of Activities
(in thousands)
Governmental Activities Business-Type Activities Total
2020 2021 2020 2021 2020 2021
Revenues:
Program revenues:
Charges for services $ 16,254,657 $ 20,053,929 $ 2,105,505 $ 3,728,501 $ 18,360,162 $ 20,053,929
Operating contributions and grants 16,522,110 16,799,986 - - 16,522,110 16,799,986
Capital contributions and grants 11,440,911 14,106,537 11,440,911 14,106,537
General revenues:
Property taxes 8,990,543 9,677,646 8,990,543 9,677,646
Transient occupancy taxes 654,044 550,508 654,044 550,508
Sales taxes 10,896,995 18,068,365 10,896,995 18,068,365
Franchise taxes 2,587,128 2,762,724 - 967 2,587,128 2,762,724
Investment earnings 11,258,137 7,205,149 6,107 14,559 11,264,244 7,205,149
Miscellaneous 2,960,909 2,794,609 - - 2,960,909 2,794,609
Transfers (1,973,072) (653,165) 1,973,072 653,165
Total revenues 79,592,362 91,366,288 4,084,684 4,397,192 83,677,046 92,019,453
Expenses:
General Government 7,415,901 7,192,106 - - 7,415,901 7,192,106
Public Safety 22,051,425 22,583,417 22,051,425 22,583,417
Community Development 4,874,909 5,675,292 4,874,909 5,675,292
Community Services 2,751,936 2,359,364 2,751,936 2,359,364
Public Services 21,486,942 24,952,498 21,486,942 24,952,498
Interest on long-term debt 14,659,186 5,151,588 14,659,186 5,151,588
Launch Pointe RV Resort - - 4,219,772 3,967,463 4,219,772 3,967,463
Total expenses 73,240,299 67,914,265 4,219,772 3,967,463 77,460,071 71,881,728
Changes in net position 6,352,063 23,452,023 (134,833) 429,729 6,217,230 23,881,752
Restatement of net position 295,000 2,696,968 - - 295,000 2,696,968
Net position,beginning of year 215,192,870 221,839,933 16,749,596 16,614,763 231,942,466 238,454,696
Net position,end of year $221,839,933 $247,988,924 $ 16,614,763 $ 17,044,492 $238,454,696 $265,033,416
12
Management's Discussion and Analysis
June 30, 2021
GOVERNMENT-WIDE FINANCIAL ANALYSIS—Continued
City of Lake Elsinore
Figure 1
Expenses and Program Revenues-Governmental Acitivities
S30,000
S2S,000
c S20,000
G
S15,000
r- $10,000 —
... 55,000
$0 1
c� !6
�efiet�\� Q ���` a Qua ❑���o o�ora; y,��Q
y` y`ce
■Expenses ■Program Revenues
CITY OF LAKE ELSI NOR E
FIGURE 2
REVENUES BY SOURCES-GOVERNMENTAL ACTIVITIES
Charges far Services_ Sales Tax
25% 19%
Transient Occupancy Taxes_
1%
Franshise Taxes_
3%
Operating Grants and
Contributions
Miscellaneous_ 17%
3%
Use of Money and Property
7%
Property Taxes_ Capital Grantsand Cowributions
1094 15%
13
Management's Discussion and Analysis
June 30, 2021
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
Governmental Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The focus of the City's governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. 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.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of$264 million, a decrease of$5.6 million in comparison with the prior year. Of the $264 million
ending fund balance, a net $16.8 million, constitutes unassigned fund balance, which is available for
spending at the government's discretion. The remainder of fund balance is nonspendable by $1.5 million;
restricted by $246 million; and assigned by $209 thousand. informational purposes. For additional
information, please see Note 12 for net position.
The General Fund is the chief operating fund of the City of Lake Elsinore. At the end of the current fiscal
year, unassigned fund balance of the General Fund was $14.0 million, while total fund balance was
$18.0 million. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned
fund balance and total fund balance to total fund expenditures. Unassigned general fund balance
represents 32.60% of total General Fund expenditures, while total fund balance represents 41.49% of that
same amount. The fund balance, of the City's General Fund experienced a increase of by $5.8 million
during the current fiscal year. The primary factor for this overall 48.15% increase is because of increased
sales tax, property tax, and charges for services.
For the major funds, the Public Financing Authority Debt Service Funds restricted fund balance decreased
by $11.5 million as the result of the annual debt service retirements and defeasance of bonds. The
Low-and-Moderate Income Housing Fund increased by $6.9 million in the restricted fund balance from a
new loan receivable and increased interest receivables for affordable housing development. The
Recreation Authority experienced a decrease in fund balance by$21 thousand resulting from annual debt
service retirements. The Capital Improvement Plan had a decrease of fund balance by $722 thousand
resulting from increased project costs.
GENERAL FUND BUDGETARY HIGHLIGHTS
Original - versus - Final: The original general fund budget versus the final budget reflects increases in
revenue of$1.8 million and increases in expenditures of$415 thousand. Budget adjustments are completed
to match shortfalls in estimated revenue and increased costs. The final budgeted expenditures of
$50.1 million is$2.8 million greater from the prior year,while the actual expenditures of$46.4 million of this
year is more than the prior year by$4.1 million.
14
Management's Discussion and Analysis
June 30, 2021
GENERAL FUND BUDGETARY HIGHLIGHTS— Continued
Revenue Variances: Use of money and property was less than estimated by $169 thousand of the final
budget resulting in reduced interest rates and a reduction in the market value of investments.
Intergovernmental revenues fell short of the final budgeted amount by $1 million. Charges for services
increased from budgeted by $482 thousand resulting from fewer costs to recoup from the internal service
funds.
Expenditure Variances: General fund actual expenditures were less than budgeted by$3.7 million. The is
partially because expenditures were less than budgeted in most all departments because of staff
retirements,staff resignations, reduced spending as well as good budgetary controls.The costs for services
for Animal Control and Graffiti Enforcement were higher than budgeted by$13 thousand and Contributions
to the Capital Improvement program where higher by$2.5 million.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's investment in capital assets for its governmental activities as of June 30, 2021 amounts to
$186 million (net of accumulated depreciation),which is an increase of$4.3 million from the prior year. This
investment in capital assets includes land, construction in progress, buildings, improvements, machinery
and equipment, and infrastructure. The total increase in the City of Lake Elsinore's investment in capital
assets for the current fiscal year was 2.4%. Major or notable capital asset events during the current fiscal
year included the following:
■ Neighborhood Center Facility
■ 1-15/ Railroad Canyon Full Lane Addition
■ City Yard Expansion
■ Camino Del Norte Link to Main Street
■ Canyon Hills Park Upgrades
■ The Anchor
■ City-wide Street Improvements
■ City-wide Curb & Gutter Improvements
.e4
15
Management's Discussion and Analysis
June 30, 2021
Capital Assets -Continued
City of Lake Elsinore
Table 3
Capital Assets at Year-End
(net of depreciation)
(in thousands)
Fiscal Year
2021 2020 %Change
Land $ 4,554,901 $ 4,345,218 4.8
Construction in progress 46,064,556 36,160,575 27.4
Buildings and structures 12,974,072 12,757,020 1.7
Improvements other than buildings 2,281,575 2,442,652 (6.6)
Machinery and equipment 770,606 918,831 (16.1)
Furniture and fixtures 260,389 378,997 (31.3)
Automotive equipment 1,266,195 1,493,532 (15.2)
Technology Equipment 170,293 178,889 (4.8)
Infrastructure 117,969,609 123,334,493 (4.3)
Total Capital Assets $ 186,312,196 $ 182,010,207 2.4
Additional information on the City of Lake Elsinore's capital assets can be found in Note 7 in the Notes to
Basic Financial Statements section of this report.
Long-Term Debt
At year-end, the City had total outstanding long-term liabilities of $198,367 million as shown below in
Table 4. Changes in long-term bonds resulted from the reduction of$13.9 million in debt through principal
and interest payments as well as a partial defeasance of certain tax allocation revenue bonds, revenue
refunding bonds, and certificate of participation bonds. Additional information on the City of Lake Elsinore's
long-term debt can be found in Note 8 in the Notes to the Basic Financial Statements section of this report.
At year-end, the City's other long-term obligations for pension and compensated absences was
$13.2 million. The City experienced a reduction of these obligations of$540 thousand, which is largely a
result from the reduction of compensated absences because of retirements and resignations.
d" -■
s
•
16
Management's Discussion and Analysis
June 30, 2021
Long-Term Debt—Continued
City of Lake Elsinore
Table 4
Outstanding Debt at Year-End
(in thousands)
Fiscal Year
2021 2020 %Change
Local agency revenue bonds $ 146,370,000 $ 157,925,000 (7.3)
Tax allocation revenue bonds 12,875,000 12,875,000 -
Lease revenue bonds 18,905,000 19,835,000 (4.7)
Certificate of participation bonds 6,270,000 6,520,000 (3.8)
Net of bond discounts and premium: 11,012,694 11,819,241 (6.8)
Capital Lease- Street Lights 3,228,855 3,403,569 (5.1)
Total Outstanding Debt $ 198,661,549 $ 212,377,810 (6.5)
Other Liabilities at Year-End
(in thousands)
Fiscal Year
2021 2020 %Change
Net pension liability $ 13,038,918 $ 12,380,535 5.3
Total OPEB liability 25,993,922 22,922,250 13.4
Compensated absences 1,343,875 1,331,619 0.9
Total Outstanding Debt $ 40,376,715 $ 36,634,404 10.2
Of the bond issues listed, Standard and Poor (S&P) provides ratings for the Successor Agency issues.
Table 5 shows the changes in ratings and reflects an in prior years based on a stable outlook for the issues.
Additional information regarding the Successor Agency Trust is presented in Note 18.
City of Lake Elsinore
Table 5
Changes in Credit Ratings
for the Successor Agency to the Lake Elsinore Redevelopment Agency
Debt Issue At Issue 2018 2019 2020
Subordinated Tax Allocation Refunding Bonds, Series 2015 A- A+ A+ A+
Third-lien Tax Allocation Bonds, Series 2018A N/A A A A
Third-lien Tax Allocation Bonds, Series 2018B N/A A A A
Subordinated Tax Allocation Refunding Bonds, Series 2019A N/A A+ A+ A+
Tax Allocation Refunding Bonds, Series 2020B N/A N/A N/A A
Tax Allocation Refunding Bonds, Series 2020C N/A N/A N/A A
17
Management's Discussion and Analysis
June 30, 2021
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
■ As the pandemic's impact on the workforce continues, it is anticipated that the unemployment rates
will continue rise and the national economy will continue to shrink.Anticipated recovery is expected
to take several years; however, we are not in a recovery stage yet.
■ Property taxes are estimated to increase slightly as housing prices and sales rise; however, the
pandemic may hinder the market in the future.
■ Gas tax, Sales tax, Use tax, and TOT tax are estimated to decrease for the next fiscal year due to
the pandemic's impact. With less people in the workforce, less will be shopping for goods, buying
gasoline, traveling, or vacationing.
• Licenses, permits, and fees are estimated to decrease because of development communities are
nearly complete or have not begun pulling permits for new communities. Other fees, such as
Community Services fees, are estimated to decrease because of facility closures resulting from the
pandemic.
• Community facility district's (CFD) assessments are estimated to increase because of the
increased annexations of developments. Some CFD revenues are earmarked for services such
as law, fire, paramedic, and landscape maintenance that will offset the increased costs of those
services. All new development must annex into these service type CFDs.
■ The City's long-range financial forecast projects that the City will experience a structural deficit as
expenditures increase at a faster rate than revenues. Anticipated increases in Public Safety costs
are the main cause of rising expenditures. The City continues to implement expenditure reduction
measures and revenue enhancement implementation to mitigate the issue.
These factors were considered in preparing the City of Lake Elsinore's budget for fiscal year 2021-22.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of Lake Elsinore's finances for all
those with an interest in the government's finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
City of Lake Elsinore, Department of Administrative Services, 130 South Main Street,
Lake Elsinore, California, 92530 or visit our website at www.lake-elsinore.org.
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CITY OF LAKE ELSINORE
STATEMENT OF NET POSITION
JUNE 30,2021
Primary Government
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments $ 54,724,762 $ 1,015,842 $ 55,740,604
Receivables:
Accounts 1,642,372 2,026 1,644,398
Notes and loans 46,798,940 - 46,798,940
Accrued interest 11,757,895 309 11,758,204
Internal balances 9,340,000 (9,340,000) -
Prepaid costs 498,149 498,149
Due from other governments 24,991,870 - 24,991,870
Inventories - 43,633 43,633
Land held for resale 768,369 - 768,369
Restricted assets:
Cash with fiscal agent 14,716,793 14,716,793
Investment in bonds 151,280,608 - 151,280,608
Capital assets not being depreciated 50,619,457 19,099,170 69,718,627
Capital assets,net of depreciation 135,692,739 7,514,064 143,206,803
Total Assets 502,8319954 18,335,044 521,166,998
Deferred Outflows of Resources:
Deferred charge on refunding 4,864,304 - 4,864,304
Pension related items 2,656,414 109,430 2,765,844
OPEB related items 3,801,129 63,664 3,864,793
Total Deferred Outflows
of Resources 11,321,847 173,094 11,494,941
Liabilities:
Accounts payable 7,219,211 171,715 7,390,926
Accrued liabilities 1,047,454 16,076 1,063,530
Accrued interest 2,269,016 75,597 2,344,613
Unearned revenue 15,870 - 15,870
Deposits payable 15,463,492 83,677 15,547,169
Noncurrent liabilities:
Due within on year
Compensated absences 137,744 - 137,744
Capital lease 184,598 - 184,598
Bonds payable 5,890,000 - 5,890,000
Due in more than one year
Compensated absences 1,206,131 - 1,206,131
Capital lease 3,044,257 - 3,044,257
Bonds payable 189,542,694 - 189,542,694
Total OPEB liability 25,474,043 519,879 25,993,922
Net pension liability 12,491,283 547,635 13,038,918
Total Liabilities 263,985,793 1,414,579 265,400,372
Deferred Inflows of Resources:
Pension related items 196,088 8,597 204,685
OPEB related items 1,982,996 40,470 2,023,466
Total Deferred Inflows
of Resources 2,179,084 49,067 2,228,151
Net Position:
Net investment in capital assets 153,408,107 26,613,234 180,021,341
Restricted for:
Public works 7,625,303 - 7,625,303
Capital projects 24,289 24,289
Debt service 113,426,340 113,426,340
Low&moderate income housing 72,114,567 72,114,567
Public facilities&improvements 70,057,568 - 70,057,568
Lighting&landscape maintenance 386,014 - 386,014
Development 124 - 124
Other purposes 49,629 - 49,629
Unrestricted (169,103,017) (9,568,742) (178,671,759)
Total Net Position $ 247,988,924 $ 17,044,492 $ 265,033,416
See Notes to Financial Statements. 21
CITY OF LAKE ELSINORE
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2021
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government $ 7,192,106 $ 1,901,893 $ 5,628,160 $
Public safety 22,583,417 1,546,880 4,766,577
Community development 5,675,292 8,564,938 375,562
Community services 2,359,364 605,248 1,500 -
Public services 24,952,498 7,434,970 6,028,187 14,106,537
Interest on long-term debt 5,151,588 - - -
Total Governmental Activities 67,914,265 20,053,929 16,799,986 14,106,537
Business-Type Activities:
Launch Pointe 3,967,463 3,728,501 - -
Total Business-Type Activities 3,967,463 3,728,501 -
Total Primary Government $ 71,881,728 $ 23,782,430 $ 16,799,986 $ 14,106,537
General Revenues:
Taxes:
Property taxes,levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Use of money and property
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position, Beginning of Year,as restated
Net Position at End of Year
See Notes to Financial Statements. 22
Net(Expenses)Revenues and Changes in
Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
$ 337,947 $ $ 337,947
(16,269,960) (16,269,960)
3,265,208 3,265,208
(1,752,616) (1,752,616)
2,617,196 2,617,196
(5,151,588) (5,151,588)
(16,953,813) - (16,953,813)
(238,962) (238,962)
(238,962) (238,962)
(16,953,813) (238,962) (17,192,775)
9,677,646 9,677,646
550,508 550,508
18,068,365 18,068,365
2,762,724 - 2,762,724
7,205,149 967 7,206,116
2,794,609 14,559 2,809,168
(653,165) 653,165 -
40,405,836 668,691 41,074,527
23,452,023 429,729 23,881,752
221,839,933 16,614,763 238,454,696
2,696,968 - 2,696,968
224,536,901 16,614,763 241,151,664
$ 247,988,924 $ 17,044,492 $ 265,033,416
See Notes to Financial Statements. 23
CITY OF LAKE ELSINORE
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30,2021
Capital Projects
Special Revenue Funds Funds
Low and Capital
Cost Recovery Moderate Income Improvement
General System Housing Plan
Assets:
Pooled cash and investments $ 14,766,655 $ 4,157,840 $ 7,422,938 $ 12,949,293
Receivables:
Accounts 1,207,370 404,347 - -
Notes and loans 1,000,000 - 42,456,716 -
Accrued interest 349,300 8,865,806 8,192
Prepaid costs 31,847 - -
Due from other governments 3,171,466 438,760 1,350,232
Due from other funds 210,091 - -
Advances to other funds - -
Land held for resale 768,369
Restricted assets:
Cash and investments with fiscal agents -
Investment in bonds - - - -
Total Assets $ 20,736,729 $ 4,562,187 $ 59,952,589 $ 14,307,717
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 4,595,376 $ 16,855 $ 180,045 $ 1,689,256
Accrued liabilities 1,016,435 - - -
Unearned revenues 15,870 - -
Deposits payable - 4,545,332 741
Due to other funds - - - -
Total Liabilities 5,627,681 4,562,187 180,786 1,689,256
Deferred Inflows of Resources:
Unavailable revenues 362,123 - 7,775,632 657,909
Total Deferred Inflows of Resources 362,123 7,775,632 657,909
Fund Balances:
Nonspendable 1,031,847 - -
Restricted - 51,996,171 -
Assigned - - 11,960,552
Unassigned 13,715,078 - -
Total Fund Balances 14,746,925 - 51,996,171 11,960,552
Total Liabilities,Deferred Inflows of
Resources,and Fund Balances $ 20,736,729 $ 4,562,187 $ 59,952,589 $ 14,307,717
See Notes to Financial Statements. 24
CITY OF LAKE ELSINORE
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30,2021
Debt Service Funds
Public Facilities Other Total
Financing Recreation Financing Governmental Governmental
Authority Authority Authority Funds Funds
Assets:
Pooled cash and investments $ $ $ $ 10,620,873 $ 49,917,599
Receivables:
Accounts 30,655 1,642,372
Notes and loans 3,342,224 46,798,940
Accrued interest 102,425 9,325,723
Prepaid costs 90,839 324,281 46,527 493,494
Due from other governments - 15,318,973 4,712,439 24,991,870
Due from other funds - - 210,091
Advances to other funds 9,340,000 9,340,000
Land held for resale - - - 768,369
Restricted assets:
Cash and investments with fiscal agents 10,640,700 7 1,454,393 2,621,693 14,716,793
Investment in bonds 113,404,847 - 37,875,761 - 151,280,608
Total Assets $ 124,045,547 $ 90,846 $ 64,313,408 $ 21,476,836 $ 309,485,859
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ $ $ $ 637,269 $ 7,118,801
Accrued liabilities - 1,016,435
Unearned revenues - 15,870
Deposits payable 10,619,214 295,382 2,823 15,463,492
Due to other funds - - 210,091 210,091
Total Liabilities 10,619,214 295,382 850,183 23,824,689
Deferred Inflows of Resources:
Unavailable revenues - - 755,457 9,551,121
Total Deferred Inflows of Resources 755,457 9,551,121
Fund Balances:
Nonspendable - 90,839 324,281 66,527 1,513,494
Restricted 113,426,333 7 63,693,745 19,595,445 248,711,701
Assigned - - - 209,224 12,169,776
Unassigned - - - - 13,715,078
Total Fund Balances 113,426,333 90,846 64,018,026 19,871,196 276,110,049
Total Liabilities,Deferred Inflows of
Resources,and Fund Balances $ 124,045,547 $ 90,846 $ 64,313,408 $ 21,476,836 $ 309,485,859
See Notes to Financial Statements. 25
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CITY OF LAKE ELSINORE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30,2021
Fund balances of governmental funds $ 276,110,049
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets net of depreciation have not been included as financial resources
in governmental fund activity. 184,476,439
Deferred outflow of resources reported are:
Pension related items:
Contributions made subsequent to measurement date $ 1,408,548
Differences between Expected&Actual Experience 565,107
Adjustment due to Differences in Proportions 61,379
Net Difference between Projected and Actual Earnings on Pension Plan Investments 325,158
Difference in actual to proportionate share contribution 877 2,361,069
Deferred outflow of resources reported are:
OPEB related items:
Changes of Assumptions 2,792,493
Contributions made subsequent to measurement date 655,522 3,448,015
Long-term debt,compensated absences,total OPEB liability and total net pension liability
are not included in the governmental fund activity:
Bonds payable (184,420,000)
Capital Equipment Lease (3,228,855)
Unamortized bond premiums/discounts (11,012,694)
Deferred charges on refunding 4,864,304
Total OPEB liability (22,874,650)
Net pension liability (10,952,688)
Compensated Absences (1,343,875) (228,968,458)
Deferred inflow of resources reported are:
Pension related items:
Adjustment due to Differences in Proportions (93,914)
Changes of Assumptions (78,019) (171,933)
Deferred inflow of resources reported are:
OPEB related items:
Changes of Assumptions (940,733)
Differences between Expected&Actual Experience (839,916) (1,780,649)
Other long-term assets are not available to pay for current period expenditures
and,therefore,are not reported in the funds. 2,429,337
Accrued interest payable for the current portion of interest due on
Bonds has not been reported in the governmental funds. (2,269,016)
Revenues reported as unavailable revenue in the governmental funds
and recognized in the statement of activities.These are included
in the intergovernmental revenues in the governmental fund activity. 9,551,121
Internal service funds are used by management to charge the costs of certain
activities,such as equipment management and self-insurance,to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net position. 2,802,950
Net Position of Governmental Activities $ 247,988,924
See Notes to Financial Statements. 27
CITY OF LAKE ELSINORE
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30,2021
Capital Projects
Special Revenue Funds Funds
Low and Capital
Cost Recovery Moderate Improvement
General System Income Housing Plan
Revenues:
Taxes $ 27,591,090 $ $ - $
Special assessments - 5,566,378
Licenses and permits 2,466,569 -
Intergovernmental 4,645,676 -
Charges for services 3,395,047 - 610,773
Investment earnings 63,426 104,030 23,065
Fines and forfeitures 250,930 - -
Contributions 172,486 - 11,811,990
Miscellaneous 8,288,753 2,400 5,644
Total Revenues 46,873,977 5,672,808 12,451,472
Expenditures:
Current:
General government 4,870,588 - -
Public safety 21,819,012 -
Community development 4,592,719 1,029,553
Community services 2,005,140 - -
Public services 8,559,939 4,507,507
Capital outlay - 11,984,842
Debt service:
Principal retirement -
Interest and fiscal charges
Payment to refunded bond escrow agent - - -
Total Expenditures 41,847,398 1,029,553 16,492,349
Excess(Deficiency)of Revenues
Over(Under)Expenditures 5,026,579 4,643,255 (4,040,877)
Other Financing Sources(Uses):
Transfers in 1,008,207 2,255,171 8,113,086
Transfers out (3,354,994) - (3,350,455)
Refunding bonds issued -
Proceeds from sale of capital asset 8,262
Payment to refunded bond escrow agent - - -
Total Other Financing Sources
(Uses) (2,338,525) 2,255,171 4,762,631
Net Change in Fund Balances 2,688,054 6,898,426 721,754
Fund Balances,Beginning of Year,as
previously reported 12,058,871 45,097,745 11,238,798
Restatements - - -
Fund Balances,Beginning of Year,as restated 12,058,871 45,097,745 11,238,798
Fund Balances,End of Year $ 14,746,925 $ $ 51,996,171 $ 11,960,552
See Notes to Financial Statements. 28
CITY OF LAKE ELSINORE
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND Bi
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30,2021
Debt Service Funds
Public Facilities Other Total
Financing Recreation Financing Governmental Governmental
Authority Authority Authority Funds Funds
Revenues:
Taxes $ $ $ $ 3,468,153 $ 31,059,243
Special assessments 2,547,334 8,113,712
Licenses and permits 3,809,367 6,275,936
Intergovernmental 7,846,759 12,492,435
Charges for services 1,633,010 5,638,830
Investment earnings 8,580,253 1,129,068 1,141,078 64,806 11,105,726
Fines and forfeitures - - - 196,501 447,431
Contributions - 11,984,476
Miscellaneous - - - 176,794 8,473,591
Total Revenues 8,580,253 1,129,068 1,141,078 19,742,724 95,591,380
Expenditures:
Current:
General government 86,159 21,072 6,525 1,085,058 6,069,402
Public safety - - - 365,853 22,184,865
Community development 115,599 5,737,871
Community services 38,567 2,043,707
Public services 5,196,574 18,264,020
Capital outlay - - - - 11,984,842
Debt service:
Principal retirement 17,355,000 675,000 390,000 424,713 18,844,713
Interest and fiscal charges 4,115,238 454,400 1,369,828 433,453 6,372,919
Payment to refunded bond escrow agent 3,888,944 - - - 3,888,944
Total Expenditures 25,445,341 1,150,472 1,766,353 7,659,817 95,391,283
Excess(Deficiency)of Revenues
Over(Under)Expenditures (16,865,088) (21,404) (625,275) 12,082,907 200,097
Other Financing Sources(Uses):
Transfers in 1,724,260 13,100,724
Transfers out - (9,648,440) (16,353,889)
Refunding bonds issued 34,970,000 34,970,000
Proceeds from sale of capital asset - 8,262
Payment to refunded bond escrow agent (28,269,885) - (28,269,885)
Total Other Financing Sources
(Uses) (28,269,885) 34,970,000 (7,924,180) 3,455,212
Net Change in Fund Balances (45,134,973) (21,404) 34,344,725 4,158,727 3,655,309
Fund Balances,Beginning of Year,as
previously reported 158,561,306 112,250 29,673,301 13,015,501 269,757,772
Restatements - - - 2,696,968 2,696,968
Fund Balances,Beginning of Year,as restated 158,561,306 112,250 29,673,301 15,712,469 272,454,740
Fund Balances,End of Year $ 113,426,333 $ 90,846 $ 64,018,026 $ 19,871,196 $ 276,110,049
See Notes to Financial Statements. 29
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CITY OF LAKE ELSINORE
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2021
Net change in fund balances-total governmental funds $ 3,655,309
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 costs of those assets is allocated over their estimated useful lives
as depreciation expense.This is the amount by which capital outlays exceeded
depreciation in the current period.
Capital outlay $ 11,945,320
Depreciation (7,310,943)
Gain/(loss)on sale of capital assets (2,321) 4,632,056
Repayment of bond principal is an expenditure in the governmental funds,but the
repayment reduces long-term liabilities in the statement of net position.
Principal repayments 19,440,000
Capital leases 174,714
Advanced refunding (34,970,000)
Payment to refunded bond escrow 32,158,829
Amortization of bond premiums/discounts (120,787) 16,682,756
Accrued interest for long-term liabilities.This is the net change in accrued interest
for the current period. 572,117
Compensated absences 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. (12,256)
OPEB liability expenses is an expenditure in the governmental funds,
but reduce the Total OPEB Liability in the statement of net position. (13,536)
Pension obligation expenses is an expenditure in the governmental funds, 203,438
but reduce the Net Pension Liability in the statement of net position.
Revenues reported as unavailable revenue in the governmental funds and recognized
in the statement of activities.These are included in the intergovernmental revenues
in the governmental fund activity. (3,591,302)
Internal service funds are used by management to charge the costs of certain
activities,such as equipment management and self-insurance,to individual funds.
The net revenues(expenses)of the internal service funds is reported with
governmental activities. 1,323,441
Change in Net Position of Governmental Activities $ 23,452,023
See Notes to Financial Statements. 31
CITY OF LAKE ELSINORE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2021
Business-Type
Activities Governmental
Enterprise Fund Activities
Internal
Launch Pointe Service Funds
Assets:
Current:
Cash and investments $ 1,015,842 $ 4,807,163
Receivables:
Accounts 2,026 -
Accrued interest 309 2,835
Prepaid costs - 4,655
Inventories 43,633 -
Total Current Assets 1,061,810 4,814,653
Noncurrent:
Capital assets-net of accumulated depreciation 26,613,234 1,835,757
Total Noncurrent Assets 26,613,234 1,835,757
Total Assets 27,675,044 6,650,410
Deferred Outflows of Resources:
Pension related items 109,430 295,345
OPEB related items 63,664 353,114
Total Deferred Outflows of Resources 173,094 648,459
Total Assets and Deferred Outflows of Resources $ 27,848,138 $ 7,298,869
Liabilities,Deferred Inflows of Resources,and Net Position:
Liabilities:
Current:
Accounts payable $ 171,715 $ 100,410
Accrued liabilities 16,076 31,019
Accrued interest 75,597 -
Deposits payable 83,677 -
Total Current Liabilities 347,065 131,429
Noncurrent:
Advances from other funds 9,340,000 -
Net pension liability 547,635 1,538,595
Total OPEB liability 519,879 2,599,393
Total Noncurrent Liabilities 10,407,514 4,137,988
Total Liabilities 10,754,579 4,269,417
Deferred Inflows of Resources:
Pension related items 8,597 24,155
OPEB related items 40,470 202,347
Total Deferred Inflows of Resources 49,067 226,502
Net Position:
Invested in capital assets 26,613,234 1,835,757
Unrestricted (9,568,742) 967,193
Total Net Position 17,044,492 2,802,950
Total Liabilities,Deferred Inflows
of Resources,and Net Position $ 27,848,138 $ 7,298,869
See Notes to Financial Statements. 32
CITY OF LAKE ELSINORE
STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2021
Business-Type
Activities Governmental
Enterprise Fund Activities
Internal
Launch Pointe Service Funds
Operating Revenues:
Sales and service charges $ 3,728,501 $ 3,481,259
Miscellaneous 14,559 170,584
Total Operating Revenues 3,743,060 3,651,843
Operating Expenses:
Personnel services 845,513 2,235,566
Contractual services 431,835 322,208
Utilities 607,969 228,285
Maintenance and operation 921,685 942,942
Cost of sales and services 343,520 -
Depreciation expense 511,685 555,768
Insurance - 654,746
Total Operating Expenses 3,662,207 4,939,515
Operating Income(Loss) 80,853 (1,287,672)
Nonoperating Revenues(Expenses):
Interest revenue 967 11,113
Interest expense (305,256) -
Total Nonoperating
Revenues(Expenses) (304,289) 11,113
Income(Loss)Before Transfers (223,436) (1,276,559)
Transfers in 653,165 2,600,000
Changes in Net Position 429,729 1,323,441
Net Position:
Beginning of Year 16,614,763 1,479,509
End of Fiscal Year $ 17,044,492 $ 2,802,950
See Notes to Financial Statements. 33
CITY OF LAKE ELSINORE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2021
Business-Type
Activities Governmental
Enterprise Fund Activities
Internal
Launch Pointe Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users $ 3,425,900 $ 4,419,236
Cash paid to suppliers for goods and services (951,343) (3,555,542)
Cash paid to employees for services (1,279,284) (1,078,821)
Net Cash Provided(Used)by Operating Activities 1,195,273 (215,127)
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in 653,165 2,600,000
Repayment made to other funds - 225,930
Advance from other funds (196,652) (225,930)
Net Cash Provided(Used)by
Non-Capital Financing Activities 456,513 2,600,000
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (75,840) (225,701)
Repayment of advance from other funds (255,000)
Interest paid on capital debt (306,214)
Net Cash Provided(Used)by
Capital and Related Financing Activities (637,054) (225,701)
Cash Flows from Investing Activities:
Interest received 660 13,088
Net Cash Provided(Used)by
Investing Activities 660 13,088
Net Increase(Decrease)in Cash
and Cash Equivalents 1,015,392 2,172,260
Cash and Cash Equivalents at Beginning of Year 450 2,634,903
Cash and Cash Equivalents at End of Year $ 1,015,842 $ 4,807,163
Reconciliation of Operating Income to Net Cash
Provided(Used)by Operating Activities:
Operating income(loss) $ 80,853 $ (1,287,672)
Adjustments to Reconcile Operating Income(loss)
Net Cash Provided(used)by Operating Activities:
Depreciation 511,685 555,768
(Increase)decrease in accounts receivable 1,297 -
(Increase)decrease in prepaid expense - 25,852
(Increase)decrease in inventory 2,414 -
(Increase)decrease in Pension related outflows (76,007) 5,450
(Increase)decrease in OPEB related outflows (25,232) (199,388)
Increase(decrease)in accounts payable 86,047 (427,461)
Increase(decrease)in accured liabilities 12,106 (107,580)
Increase(decrease)in deposits payable 25,063 -
Increase(decrease)in net pension liability 524,820 497,460
Increase(decrease)in Total OPEB liability 61,434 765,612
Increase(decrease)in deferred inflows from OPEB (10,489) (1,488)
Increase(decrease)in deferred inflows from pensions 1,282 (41,680)
Total Adjustments 1,114,420 1,072,545
Net Cash Provided(Used)by
Operating Activities $ 1,195,273 $ (215,127)
Non-Cash Investing,Capital,and Financing Activities:
Unrealized gain(loss)due to GASB 31 adjustment $ 967 $ (8,402)
See Notes to Financial Statements. 34
CITY OF LAKE ELSINORE
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30,2021
Custodial Funds
Assessment Private-Purpose
Districts Trust Funds
Assets:
Pooled cash and investments $ 11,308,610 $ 11,898,539
Receivables:
Accounts 8,844 -
Accrued interest 14,408 14,526
Prepaid costs 59,728 351,112
Due from other governments 442,501 -
Land held for resale - 6,071,897
Restricted assets:
Cash and investments with fiscal agents 19,851,448 26,568
Capital assets:
Capital assets,not being depreciated - 2,004,419
Capital assets,net of accumulated depreciation 14,981,931
Deposits with Other Agencies 10,914,596 -
Total Assets $ 42,600,135 $ 35,348,992
Deferred Outflows of Resources:
Deferred charge on refunding - 1,667,222
Total Deferred Outflows of Resources $ - $ 1,667,222
Liabilities:
Accounts payable $ 19,739 $ 117,794
Accrued interest 17,494,519 587,461
Deposits payable 957,064 -
Bonds and loans payable due in one year 5,745,000 2,620,000
Long-term liabilities:
Bonds and loans payable due in more than one year 226,499,000 70,414,901
Due to Bondholders 6,073,468 -
Total Liabilities $ 256,788,790 $ 73,740,156
Net Position:
Restricted for organizations and other governments $ (214,188,655) $ (36,723,942)
Total Net Position $ (214,188,655) $ (36,723,942)
See Notes to Financial Statements. 35
CITY OF LAKE ELSINORE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30,2021
Custodial Funds
Assessment Private-Purpose
Districts Trust Funds
Additions:
Collection of special taxes $ 26,004,814 $
Taxes - 15,054,596
Investment earnings 107,522 18,132
Miscellaneous 30,611 350
Total Additions 26,142,947 15,073,078
Deductions:
Contractual services 4,082,932 14,269,918
Interest expense 8,471,656 2,123,508
Depreciation expense - 1,767,846
Contributions to other governments 9,832 -
Costs of issuance - 328,221
Total Deductions 12,858,749 18,489,494
Changes in Net Position 13,284,198 (3,416,416)
Net Position-Beginning of the Year 38,214,086 (33,307,526)
Restatements (265,686,939)
Beginning of Fiscal Year,as restated (227,472,853) (33,307,526)
Net Position-End of the Year $ (214,188,655) $ (36,723,942)
See Notes to Financial Statements. 36
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CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2021
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of Significant Accounting Policies
a. Financial Reporting Entity
The City of Lake Elsinore ("City")was incorporated April 23, 1888 under the General Laws
of the State of California. The City operates under a Council-Member form of government
and by the laws, provides the following services: public safety, highways and streets,
cultural recreation, public improvements, community development, and general
administrative services.
The financial statements of the City of Lake Elsinore include the financial activities of
the City, the Successor Agency to the Lake Elsinore Redevelopment Agency (Note 17),
the Lake Elsinore Public Financing Authority, the Lake Elsinore Recreation Authority and
the Lake Elsinore Facilities Financing Authority. In accordance with GASB Statement
No. 14, the basic criteria for including an agency, institution, authority or other organization
in a governmental unit's financial reporting entity is financial accountability. Financial
accountability includes but is not limited to 1)selection of the governing body, 2) imposition
of will, 3) ability to provide a financial benefit to or impose financial burden on and
4)fiscal dependency.
There may, however, be factors other than financial accountability that are so significant
that exclusion of a particular agency from a reporting entity's financial statements would be
misleading. These other factors include scope of public service and special financing
relationships.
Based upon the application of these criteria, an agency, institution or authority, may be
included as a component unit in the primary government's financial statements. Blended
component units, although legally separate entities, are, in substance, part of the
government's operations and so data from these units are combined with data of the
primary government.A discretely presented component unit, on the other hand, is reported
in a separate column in the combined financial statements to emphasize it is legally
separate from the government.There are no discretely presented component units in these
financial statements. Each blended component unit presented has a June 30, 2021,
year end.All the component units are blended in these financial statements.The governing
bodies of these component units are comprised of the City Council and the services they
provide almost exclusively benefits the City of Lake Elsinore. The following is a brief review
of each component unit included in the primary government's reporting entity.
The Lake Elsinore Public Financing Authority — The "Authority" is a joint exercise of
powers between the City and the Lake Elsinore Redevelopment Agency created by a joint
powers agreement dated July 25, 1989.The purpose of the Authority is to provide,through
the issuance of revenue bonds, a financing pool to fund capital improvement projects.
These revenues bonds are to be repaid solely from the revenues of certain public
obligations. The Authority does not have taxing power. The City Council also acts as the
governing body of the Authority.The Authority's activities are blended with those of the City
in these financial statements and are reported as a debt service fund. On February 1,2012,
the Lake Elsinore Redevelopment Agency was dissolved, and the City became the
Successor Agency to the Lake Elsinore Redevelopment Agency.
39
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
The Lake Elsinore Recreation Authority—The "Recreation Authority" is a joint exercise
of powers between the City and the Lake Elsinore Redevelopment Agency created by a
joint powers agreement dated December 1, 1996. The purpose of the Recreation Authority
is to provide, through the issuance of revenue bonds, a financing pool to fund capital
improvement projects. These revenues bonds are to be repaid solely from the revenues of
certain public obligations. The Recreation Authority does not have taxing power. The
City Council also acts as the governing body of the Recreation Authority. The
Recreation Authority's activities are blended with those of the City in these financial
statements and are reported as a debt service fund. On February 1, 2012, the
Lake Elsinore Redevelopment Agency was dissolved, and the City became the Successor
Agency to the Lake Elsinore Redevelopment Agency.
The Lake Elsinore Facilities Financing Authority—On September 13,2016 City Council
formed the Lake Elsinore Facilities Financing Authority which is a joint powers agreement
between the City and the Lake Elsinore Parking Authority to issue lease revenue
bonds. The use of lease revenue bonds is a financing pool to fund general infrastructure
and is commonly used by cities in California. Under this financing structure, a joint powers
authority is utilized for the sole purpose of issuing bonds for the benefit of the issuer. The
City Council also acts as the governing body of the Facilities Financing Authority. The
Facilities Financing Authority activities are blended with those of the City in these financial
statements and are reported as a debt service fund.
b. Basis of Presentation
The City's basic financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America. The Government Accounting
Standards Board is the acknowledged standard setting body for establishing accounting
and financial reporting standards followed by governmental entities in the United States of
America.
Government-wide Statements: The government-wide financial statements
(i.e.,the Statement of Net Position and the Statement of Activities)report information about
the reporting government as a whole, except for its fiduciary activities. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees
and charges for support. Likewise, the primary government (including its blended
component units) is reported separately from discretely presented component units for
which the primary government is financially accountable. The City has no discretely
presented component units. For the most part, the effect of interfund activity has been
removed from the government-wide financial statements. Direct payments have not been
eliminated from the functional categories. Internal expenses and internal payments have
been eliminated.
The Statement of Activities demonstrates the degree to which the direct expenses of a
given function or segment are offset by program revenues. Direct expenses are expenses
that are clearly identifiable with a specific program, project, function or segment. Program
revenues of the City include: 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment
and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items that are properly
not included among program revenues are reported instead as general revenues.
40
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
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, deferred outflows/inflows of resources, 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.
Separate financial statements for the government's governmental funds, proprietary funds
and fiduciary funds are presented after the government-wide financial statements. These
statements display information about major funds individually and nonmajor funds in the
aggregate for governmental funds. Fiduciary statements, even though excluded from the
government-wide financial statements, represents private purpose trust funds and
custodial funds.
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary funds and
private-purpose trust fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows.
When both restricted and unrestricted resources are available for use, it is the
government's policy to use restricted resources first, then unrestricted resources as they
are needed.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within the current period or soon enough thereafter
to pay liabilities of the current period. For this purpose,the government considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, except for principal and
interest on general long-term liabilities and compensated absences which are recognized
as expenditures to the extent they have matured. General capital asset acquisitions are
reported as expenditures in governmental funds. Proceeds of general long-term liabilities
are reported as other financing sources.
Property taxes, franchise taxes, intergovernmental revenues, licenses, and interest
associated with the current fiscal period are all considered to be susceptible to accrual and
are therefore recognized as revenues of the current fiscal period.Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible
to accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
Proprietary funds distinguish 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.
All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
41
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
The City's fiduciary funds consist of private purpose trust funds which are reported using
the economic resources measurement focus and the custodial funds which have no
measurement focus, but utilizes the accrual basis for reporting its assets, deferred
outflows/inflows of resources, and liabilities.
The City reports the following major governmental funds:
The General Fund is used to account for all financial resources of the City, except for
those required to be accounted for in another fund.
The Cost Recovery System Fund is used to account for receipts of deposits. Deposits
may be paid by developers used to pay for plans and permits or by citizens for facility
rentals.
The Low and Moderate-Income Housing Special Revenue Fund is used to account for
revenues and expenditures associated with the low and moderate-income projects.
Expenditures for this fund are restricted to low and moderate-income housing projects.
The Capital Improvement Plan Capital Project Fund is used to account for capital
improvement plan projects, financed by grants, resources from other funds and
miscellaneous revenues.
The Public Financing Authority Debt Service Fund is used to account for the
accumulation of resources for, and the repayment of, long-term debt principal, interest
and related costs of the Authority.
The Recreation Authority Debt Service Fund is used to account for debt service
transactions including revenue collections and payments of principal and interest on
long-term obligations of the component unit.
The Facilities Financing Authority Fund is used to account for debt service transactions
and payments of principal and interest on long-term obligations of the component unit.
The City reports the following enterprise funds as major proprietary funds:
The Launch Pointe is used to account for goods or services provided by the
Launch Pointe facility.
Additionally, the City reports the following fund types:
The Internal Service Funds are used to account for goods or services provided by one
department to other departments on a cost-reimbursement basis.
The Private — purpose Trust Funds are used to account for activities of the
Successor Agency to the Lake Elsinore Redevelopment Agency and the activities of
the Carl Graves Trust.
The Custodial Funds are used to account for special assessments and taxes received
by the City as an agent for individuals, other governments and other entities used to
pay interest, principal, and services on community facilities and assessment district
bonds.
42
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
d. Investments
Investments are reported at fair value,except for the investments in local obligations,which
are reported at cost, because the investments are not transferable, and the fair values are
not affected by changes in interest rates. Investment earnings includes interest earnings,
changes in fair value, any gains or losses related to the liquidation or sale of the investment.
e. Employee Compensated Absences
In accordance with GASB Statement No. 16, a liability is recorded for unused vacation,
sick, holiday benefits and compensatory leave balances since the employees' entitlement
to these balances are attributable to services already rendered and it is probable that
virtually all of these balances will be liquidated by either paid time off or payment upon
termination or retirement. The amount recorded in accordance with GASB Statement
No. 16 at June 30, 2021, was $1,343,875.
f. Inter-fund Activity
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either"due to/from other funds"
(i.e., the current portion of interfund loans) or "advances to/from other funds"
(i.e., the noncurrent portion of interfund loans).
Noncurrent portions of long-term interfund loan receivables are reported as advances and
such amounts are offset equally by a non-spendable fund balance which indicates that they
do not constitute expendable available financial resources and therefore are not available
for appropriation.
g. Risk Management
The City's Workers' Compensation losses are covered by a policy with the
California State Compensation Board. The City's liability losses are covered under their
participation in the California Joint Powers Insurance Authority ("JPIA").
h. Capital Assets
Capital assets, which include land, structures, equipment, and infrastructure assets, are
reported in the government-wide financial statements. Capital assets are recorded at cost
where historical records are available and at an estimated historical cost where no
historical records exist. Assets purchased in excess of$5,000 are capitalized if they have
an expected useful life of 2 years or more. Infrastructure is capitalized if cost is in excess
of$50,000 and it has an expected useful life of 2 years or more. Capital assets acquired
through lease obligations are valued at the present value of future lease payments at the
date acquired. Donated capital assets, donated works of art and similar items, and capital
assets received in a service concession arrangement are reported at acquisition value
rather than fair value at the date of donation. The cost of normal maintenance and repairs
that do not add to the value of the asset's lives are not capitalized.
43
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Capital assets used in operations are depreciated over their estimated useful lives using
the straight-line method in the government-wide financial statements. Depreciation is
charged as an expense against operations and accumulated depreciation is reported on
the Statement of Net Position. The range of lives used for depreciation purposes for each
capital asset class is as follows:
Assets Years
Buildings and structures 40
Improvements Other Than Buildings 25
Machinery and Equipment 5-8
Furniture and Fixtures 5-7
Automotive Equipment 5-15
Infrastructure 35-100
i. Property Tax Revenue
Property tax in California is levied according to Article 13-A of the California Constitution.
The County of Riverside, California (the County) is permitted by State law(Proposition 13)
to levy taxes at 1% of full market value (at time of purchase) as determined by the
County Assessor.
Property taxes are levied by the County and shared with all other political jurisdictions
within the County. These political jurisdictions and the County may levy an additional
property tax override only after two-thirds approval of the jurisdictions' voters.
The County bills and collects the property taxes and remits them to the City in installments
during the year. City property tax revenues are recognized when levied provided that the
revenue is collected during the year or within 60 days of year-end. Property taxes attach
as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are
payable in two installments on November 1 and February 1. Such taxes become delinquent
on December 10 and April 10, respectively.
j. Miscellaneous Revenues
Included in miscellaneous revenues for the governmental funds is $3,350,298 of fire
service tax credits, $3,481,613 reimbursed revenues, $3,000 in donations, $43,136 in
recoverable expenditures and, $335,792 in other revenues. Miscellaneous revenues for
the Statement of Activities include $2,794,109 reimbursed revenues and $500 other
revenues.
k. 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 a consumption of net position that applies to a
future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The City only has three items that qualify for reporting in
this category. One is the deferred charge on refunding reported in the government-wide
statement of net position. A deferred charge on refunding results from the difference in the
44
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
carrying value of refunded debt and its reacquisition price. This amount is deferred and
amortized over the shorter of the life of the refunding or refunding debt. Secondly, The City
also has deferred outflows related to pensions, which arises only under a full accrual basis
of accounting. Accordingly, this item (pension related items), is reported only in the
government-wide statement of net position. This includes pension contributions
subsequent to the measurement date of the net pension liability and other amounts
(see Note 13),which are amortized by an actuarial determined period.Thirdly, the City has
deferred outflows related to Other Post-Employment Benefits (OPEB), which include
contributions subsequent to the measurement date of the Total OPEB liability and other
amounts (see Note 14).
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position that applies to a
future period(s)and so will not be recognized as an inflow of resources(revenue) until that
time. The City has three types of items, which arises only under a modified accrual basis
of accounting that qualifies for reporting in this category. First, unavailable revenue, is
reported only in the governmental funds balance sheet. The governmental funds report
unavailable revenues from interest on loans and notes receivable. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become
available. Secondly, the City also has deferred inflows of resources related to pensions,
which arises only under a full accrual basis of accounting. Accordingly, this item
(pension related items), is reported only in the government-wide statement of net position.
These amounts (see Note 12) are amortized by an actuarial determined period. Thirdly,
the City also has deferred inflows of resources related to OPEB, which arise only under a
full accrual basis of accounting (see Note 14).
I. Other Post-Employment 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
plan have been determined by an independent actuary. For this purpose, benefit payments
are recognized when currently due and payable in accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain to
liability information within certain defined timeframes. For this report, the following
timeframes are used:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Recognition of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to changes in total OPEB liability and fiduciary net position are
recognized in OPEB expense systematically over time. Amounts are first recognized in
OPEB expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to OPEB and
are to be recognized in future OPEB expense.
45
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
The recognition period differs depending on the source of the gain or loss:
Investment Gains and Losses Straight-line amortization over a closed
5-year period.
Effects of Assumption Changes and Straight-line amortization over a closed
Experience Gains and Losses period equal to the average of the expected
remaining service lives of all members (i.e.,
active employees and terminated/retired
members) that are provided with OPEB
through the plan.
m. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets, liabilities,deferred outflows/inflows
of resources and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenditures/expenses during the
reporting period. Actual results could differ from those amounts.
II. STEWARDSHIP
Note 2: Stewardship, Compliance and Accountability
a. Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and
services. They represent the estimated amount of the expenditure ultimately to result if
unperformed contracts in progress at year-end are completed. They do not constitute
expenditures or estimated liabilities.
The following funds have encumbrances at June 30, 2021:
Encumbrances
Major Fund
Capital Improvement Plan 547,112
Non-Major Funds 259,965
b. Excess of Expenditures over Appropriations
Excess expenditures over appropriations were as follows:
Fund Expenditures Appropriations Excess
Major Funds:
General Fund
Transfers out $ 3,354,994 $ 643,690 $ (2,711,304)
Low and Moderate Income Housing
Community development 1,029,553 505,000 (524,553)
46
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
The City had the following cash and investments at June 30:
Fair Value
2021
Statement of Net Position:
Cash and investments $ 55,740,604
Restricted Cash with fiscal agent 165,997,401
Statement of Fiduciary Net Position
Cash and investments 23,207,149
Restricted Cash and Investments with Fiscal Agent 19,878,016
Total Cash and Investments $ 264,823,170
Cash and investments consist of the following:
Petty Cash $ 4,750
Deposits in Financial Institution 2,768,624
Investments 262,049,796
Total Cash and Investments $ 264,823,170
Investments Authorized by the California Government Code and 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). It
identifies certain provisions of the California Government Code (or the City's investment
policy, where 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
Maximum Percentage Investment In
Investment Type Maturity of Portfolio* One Issuer
US Treasury Obligations 5 years None None
US Government Sponsored Agency Securities 5 years None 40%
State and Local Agency Obligations 5 years None None
Banker's Acceptances 180 days 40% 30%
Insured or Collateralized Time Certificate of Deposits 5 years None 5%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% 5%
Repurchase Agreements 30 days None 5%
Reverse Repurchase Agreements 92 days 10% 5%
Medium-Term Corporate Notes 5 years 30% 5%
Local Agency Investment Fund (LAIF) N/A None $75,000,000
California Asset Management Program (CAMP) N/A None 5%
Money Market Fund N/A 20% 5%
Supranational 5 years 30% 5%
Asset Backed Securities 5 years 20% 5%
*Excluding amounts held by bond trustee that are not subject to California Government Code
Restrictions.
47
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
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 provisions of the California Government Code or the
City's investment policy. Investments authorized for funds held by bond trustee include
United States Treasury Obligations, United States Government Sponsored Agency
Securities, Guaranteed Investment Contracts, Commercial Paper, Local Agency Bonds,
Banker's Acceptance and Money Market Mutual Funds. There were no limitations on the
maximum amount that can be invested in one issuer, maximum percentage allowed or the
maximum maturity of an investment, except for the maturity of Commercial Paper which is
limited to 92 days and of Banker's Acceptances which are limited to one year.
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 rates. One of the ways that the
City manages its exposure to interest rates 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 investments by maturity:
Investment Maturities (in Years)
12 Months or 13 to 24 25 to 60 More Than
Investment Type Total Less Months Months 60 Months
Local Agency Investment Fund $ 43,632,610 $ 43,632,610 $ - $ - $ -
Corporate Notes 6,066,727 - 2,203,910 3,071,917 790,900
Asset Backed Securities 2,477,581 - 741,300 933,537 802,744
Federal Agency Securities 6,648,341 5,394 3,345,379 1,052,651 2,244,917
U.S.Treasury Notes 11,515,148 - 7,882,726 3,289,094 343,328
Supra-National Agency Bonds 742,968 742,968 - -
Municipal Bonds 1,337,181 - - 654,622 682,559
Commercial Paper 1,899,043 1,899,043 - - -
CertifcatesofDeposits 941,179 283,076 658,103
California Asset Management
Program Pool(CAMP) 913,601 913,601 -
Investments with Fiscal Agents:
Money Market Funds 34,103,776 34,103,776
Local Obligation Bonds 151,771,641 151,771,641 - - -
Total $ 262,049,796 $ 232,609,141 $ 15,574,386 $ 9,001,821 $ 4,864,448
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation
to the holder of the investment. This is measured by the assignment of a 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, by Standard and Poor's as of year-end
for each investment type.
48
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
The City's investment in local obligation bonds are secured by property taxes on the
subordinate tax allocation bonds and special assessment taxes on property owned within the
Community Facilities Districts or Special Assessment Districts. In the event of a decline in
property values and general economic conditions, the District may experience an increase in
delinquent special assessment collections resulting from foreclosures. However, these special
assessment taxes are fully recovered when foreclosed properties are purchased.
Minimum Legal Not Required to
Rating AAA AA+ Other Not Rated be Rated
Local Agency Investment Fund $ 43,632,610 N/A $ $ - $ - $ 43,632,610 $
Corporate Notes 6,066,726 AA 556,307 5,510,419 -
Asset Backed Securities 2,477,582 N/A 2,282,738 - - 194,844
Federal Agency Securities 6,648,341 N/A - 6,648,341 -
US Treasury Notes 11,515,148 N/A - 11,515,148
Supra-National Agency Bonds 742,968 N/A 742,968 - - -
Municipal Bonds 1,337,181 N/A 99,611 463,658 644,094 129,818
Certificate of Deposit 941,179 N/A - - 941,179 -
Commercial Paper 1,899,043 N/A 1,899,043 -
California Asset Management
Program Pool(CAMP) 913,601 N/A - - 913,601
Held by Bond Trustee:
Money Market Mutual Funds 34,103,776 34,103,776 -
Local Obligation Bonds 151,771,641 151,771,641 -
Total $262,049,796 $3,125,317 $19,183,454 $ 8,994,735 $229,832,689 $ 913,601
The ratings for the other above are as follows:
Other:
AA $ 873,851
AA- 103,709
A-1 1,899,043
A+ 2,004,221
A 750,755
A- 1,838,903
BBB+ 1,524,253
$ 8,994,735
Concentration of Credit Risk
The investments 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.
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's investments are
as follows:
Issuer Investment Type Amount
CFD 2003-2 Special Tax Bonds, 2014 Series B (Improvement Area A and C) Local Obligation Bonds $ 15,999,099
CFD 2003-2 Special Tax Bonds, 2015 Series (Improvement Area B) Local Obligation Bonds 20,894,992
CFD 2004-3-1 Special Tax Bonds, 2015 Series (Improvement Area 1) Local Obligation Bonds 16,908,555
CFD 2004-3-2 Special Tax Bonds, 2015 Series(Improvement Area 2) Local Obligation Bonds 18,698,969
CFD 2005-2 Special Tax Bonds, 2015 Series (Improvement Area 2) Local Obligation Bonds 17,002,787
49
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty
(e.g., broker-dealer)to a transaction, a government will not be able to recover the value of
its investment or collateral securities that are in the possession of another party.
The California Government Code and the City's investment policy do not contain legal or
policy requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits: The California Government
Code requires that a financial institution secure deposits made by state or local government
units by pledging securities in an undivided collateral pool held by a depository regulated
under state law (unless so waived by the governmental unit). The fair 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, 2021, $2,768,624 of the City's deposits with financial institutions
in excess of federal depository insurance limits were held in collateralized accounts.
Local Agency Investment Fund
The LAIF is a special fund of the California State Treasury through which local
governments may pool investments. The City may invest up to $75,000,000 in the fund.
Investments in LAIF are highly liquid, as deposits can be converted to cash within
twenty-four hours without loss of interest. Investments with LAIF are secured by the full
faith and credit of the State of California. The yield of LAIF during the quarter ended
June 30, 2021, was 0.26%. The carrying value and estimated fair value of the LAIF Pool
at June 30, 2021, was$42,755,064 and $43,632,610, respectively. The City's share of the
Pool at June 30, 2021, was approximately 0.117 percent.
The fair value of the City's investment in this pool is reported in the accompanying financial
statements 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. Included in LAIF's investment portfolio are
certain derivative securities or similar products in the form of structured notes totaling
$425,457,019 and asset-backed securities totaling $11,098,045,565. LAIF's and the City's
exposure to risk (credit, market or legal) is not currently available.
The LAIF has oversight by the Local Investment Advisory Board. The LAIF Board consists
of five members as designated by Statute. LAIF is also regulated by California Government
Code Section 16429.
Investment in California Asset Management Program
The California Asset Management Program (the CAMP) is a public joint powers authority
which provides California Public Agencies with investment management services for
surplus funds and comprehensive investment management, accounting and arbitrage
rebate calculation services for proceeds of tax-exempt financings. The CAMP currently
offers the Cash Reserve Portfolio, a short-term investment portfolio, as a means for Public
Agencies to invest these funds. Public Agencies that invest in the Pool (Participants)
purchase shares of beneficial interest. Participants may also establish individual,
50
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
professionally managed investment accounts(Individual Portfolios)by separate agreement
with the Investment Advisor. The City has a separate account in the Investment Advisor to
manage part of the CAMP portfolio.
Investments in the Pools and Individual Portfolios are made only in investments in which
Public Agencies generally are permitted by California statute. The CAMP may reject any
investment and may limit the size of a Participant's account. The Pool seeks to maintain,
but does not guarantee, a constant net asset value of$1.00 per share. A Participant may
withdraw funds from its Pool accounts at any time by check or wire transfers. Requests for
wire transfers must be made by 9:00 a.m. that day. Fair value of the Pool is determined by
the fair value per share of the Pool's underlying portfolio.
An investment in the Trust is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Shares of the Trust are distributed by
PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA)
(www.finra.org) and Securities Investor Protection Corporation (SIPC) (www.sipc.org).
Camp has oversight by PFM,which is an investment advisor registered with the Securities
Exchange Commission under the Investment Advisors Act of 1940.
Investment in Bonds
The Lake Elsinore Public Financing Authority has purchased various Assessment District
(AD) and Community Facilities District (CFD) bonds from the proceeds of revenue bonds
issued by the Authority to facilitate the respective bond issues of the Districts. The CFD
and Assessment District Bonds are secured solely by assessments on property owners
within the Districts. The repayment schedules of the bonds, and interest thereon, to the
Authority are concurrent and sufficient to satisfy the debt service requirements of the
respective Authority revenue bonds.
Investment Type Fair Value
CFD 2003-2 Special Tax Bonds,2014 Series B(Improvement Area A and C) $ 15,999,099
CFD 95-1 Special Tax Bonds,2015 Series 839,897
CFD 2003-2 Special Tax Bonds,2015 Series(Improvement Area B) 20,894,992
CFD 2004-3-1 Special Tax Bonds,2015 Series(Improvement Area 1) 16,908,555
CFD 2004-3-2 Special Tax Bonds,2015 Series(Improvement Area 2) 18,698,969
CFD 2005-1 Special Tax Bonds,2015 Series 6,522,515
CFD 2005-2 Special Tax Bonds,2015 Series (Improvement Area 2) 17,002,787
CFD 2005-6 Special Tax Bonds,2015 Series 2,265,673
CFD 2006-2 Special Tax Bonds,2015 Series 4,695,228
CFD 2006-1 Special Tax Bonds,2015 A Series(Improvement Area B) 2,752,132
CFD 2005-2 Special Tax Bonds,2019 Series A(Improvement Area 2) 6,825,000
$ 113,404,847
51
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
The Lake Elsinore Facilities Financing Authority has purchased Community Facilities
District (CFD) bonds from the proceeds of revenue bonds issued by the Authority to
facilitate the respective bond issues of the Districts. The CFD Bonds are secured solely by
assessments on property owners within the Districts. The repayment schedules of the
bonds, and interest thereon, to the Authority are concurrent and sufficient to satisfy the
debt service requirements of the respective Authority revenue bonds.
Investment Type Fair Value
CFD 2003-2 Lease Revenue Bonds,Series 2017 Canyon Hills (Improvement Area B) $ 3,752,880
CFD 98-1 Lease Revenue Bonds,Series 2021 11,411,699
CFD 2003-2 Lease Revenue Bonds,Series 2021 (Improvement Area C) 6,108,357
CFD 2003-2 Lease Revenue Bonds,Series 2021 (Improvement Area D) 9,225,960
CFD 2005-5 Lease Revenue Bonds,Series 2021 3,381,063
CFD 2006-1 Lease Revenue Bonds,Series 2021 (Improvement Area A) 3,995,802
$ 37,875,761
Note 4: Fair Value Measurements
Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value
Measurements and Application provides the framework for measuring fair value. The
framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value with Level 1 given the highest priority and Level 3 the lowest priority.
The three levels of the fair value hierarchy are as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the organization has the ability to access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly. Level 2 inputs include the following:
a. Quoted prices for similar assets or liabilities in active markets.
b. Quoted prices for identical or similar assets or liabilities in markets that are not active.
c. Inputs other than quoted prices that are observable for the asset or liability
(for example, interest rates and yield curves observable at commonly quoted intervals,
volatilities, prepayment speeds, loss severities, credit risks, and default rates).
d. Inputs that are derived principally from or corroborated by observable market data by
correlation or other means (market-corroborated inputs).
Level 3 inputs are unobservable inputs for the asset or liability.
52
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 4: Fair Value Measurements (Continued)
Fair value of assets measured on a recurring basis at June 30, 2021, are as follows:
Significant Other
Observable Inputs
Fair Value (Level 2) Uncategorized
Local Agency Investment Fund $ 43,632,610 $ - $ 43,632,610
Corporate Notes 6,066,727 6,066,727 -
Asset Backed Securities 2,477,581 2,477,581
Commercial Paper 1,899,043 1,899,043
Federal Agency Securities 6,648,341 6,648,341
US Treasury Notes 11,515,148 11,515,148
Supra-National Agency Bonds 742,968 742,968
Municipal Bonds 1,337,181 1,337,181
Certificate of Deposits 941,179 941,179 -
California Asset Management Program Pool
(CAMP) 913,601 - 913,601
Held by Bond Trustee:
Money Market Mutual Bonds 34,103,776 34,103,776 -
Local Obligations Bonds 151,771,641 151,771,641 -
Total $ 262,049,796 $ 217,503,585 $ 44,546,211
Fair values for investments are determined by using a matrix pricing technique. Matrix
pricing is used to value securities based on the security's relationship to benchmark quoted
prices. Uncategorized investments do not fall under the fair value hierarchy as there is no
active market for the investments. Land held for resale was acquired for the purpose of
redevelopment rather than for income and profit.Therefore, land for resale is exempt under
GASB 72 fair value measurements.
Note 5: Loans Receivable from Successor Agency
The obligations of the dissolved Redevelopment Agency due to the City are valid enforceable
obligations payable by the Successor Agency under the requirements of the Dissolution Act
and AB 1484. Accordingly, the City has not recorded an allowance for uncollectible advances.
The State of California Department of Finance (DOF) has audited the 1995 Loan from the
Housing Fund and the City Bond Debt Service Advances as part of its review of the Recognized
Obligation Payments Schedule (ROPS), and has not objected to the Successor Agency's
repayment of those loans in accordance with the approved ROPS and applicable loan
agreements.
1995 Loan from Housing Fund
As of June 30,2021,the Successor Agency owed the City, in its capacity as housing successor
agency, $23,705,352. The loans were made from the Low and Moderate-Income Housing
Special Revenue Fund from the 1995 Series A and 1999 Series C bond proceeds pursuant to
that certain Housing Fund Loan Agreement dated December 1, 1995. The loan proceeds were
deposited into the Rancho Laguna Special Revenue Fund, and then subsequently loaned to
each of the three project areas as interfund loans in accordance with the loan agreement. The
1995 Series A and 1999 Series C bonds were refunded in fiscal year 2010 with the issuance
of the 2010 Series A and 2010 Series B bonds. The loans payable includes an original amount
of$18,040,440 and accrued interest of$5,664,912. During the fiscal year, accrued interest of
$458,750 was earned on the outstanding loans. The loans from the Low and Moderate-Income
53
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 5: Loans Receivable from Successor Agency (Continued)
Housing Special Revenue Fund are repayable from all available revenues of the
Successor Agency after payment of senior indebtedness in accordance with the governing loan
agreement.
The issuer of the bonds sought court validation of the actions taken in connection with the
1995 Bonds under Code of Civil Procedure Section 869, et seq. On November 14, 1995, the
Superior Court of the State of California in and for the County of Riverside validated the
1995 bond issues and the interfund and housing fund loan agreements relating to payment of
the bond debt.
Public Finance Authority Loan Agreements
The Lake Elsinore Public Financing Authority ("Authority") entered into loan agreements with
the former Redevelopment Agency ("Agency") whereby the Authority loaned the proceeds of
2010 Series A, B and C Tax Allocation Revenue Bonds and the 201 1 Series A Tax Allocation
Bonds issued by the Authority to the Agency to retire debt and provide funds for certain public
improvements in Agency project areas. As a result of the dissolution of the Agency, the
obligation to pay the loans to the Authority was transferred to the Successor Agency to the
Redevelopment Agency of the City of Lake Elsinore ("Successor Agency"). The 2010 Series A
and B Tax Allocation Revenue Bonds were fully refunded with the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore Subordinated Tax Allocation Refunding
Bonds Series, 2019A and the Successor Agency of the Redevelopment Agency of the
City of Lake Elsinore Tax Allocation Refunding Bonds, Series 2019B, respectively. In addition,
the 2010 Series C Tax Allocation Revenue Bonds were fully refunded with the Lake Elsinore
Facilities Financing Authority (Rancho Laguna Redevelopment Project Areas No. 1 and No. II)
Tax Allocation Revenue Refunding Bonds, Series 2020A(see Note 7).
The following table represents the outstanding balance of loans receivable from the Successor
Agency at June 30, 2021:
Loans Receivable
Tax Allocation Revenue Bonds Balance
2020 Series A $ 12,875,000
Note 6: Notes Receivable
The City has a note receivable in the amount of $1,000,000 from Pottery Court
Housing Associates, L.P. dated December 9, 2009. The proceeds of the loan assisted with the
development of the Pottery Court Affordable Housing Project. This loan was funded with
HOPE VI grant funds from the United States Department of Housing and Urban Development.
54
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 6: Notes Receivable (Continued)
The loan is to be repaid with interest in arrears in annual installments on July 1, commencing
on July 1 in the calendar year immediately following the calendar year in which the deed of
trust securing the permanent loan is recorded in the official records of Riverside County.Absent
prepayment or acceleration, the Borrower agrees to pay the loan in annual payments equal to
75 percent of the residual receipts as defined in the loan agreement. Notwithstanding any other
provision, unless the loan is paid earlier, the outstanding principal and accrued unpaid interest
is payable 55 years from the date of recording of the release of construction covenants. The
release of construction covenants was recorded on August 8, 2012. At June 30, 2021, the total
outstanding balance of$1,330,000 includes accrued interest of$330,000.
The City's Low and Moderate-Income Housing Asset Special Revenue Fund has a note
receivable in the amount of $9,737,000 from Pottery Court Housing Associates, L.P. dated
March 10, 2011. The proceeds of the loan assisted with the acquisition of property and
development of the Pottery Court Affordable Housing Project. The loan is to be repaid with
interest in arrears in annual installments on July 1, commencing July 1 in the calendar year
immediately following the calendar year in which the deed of trust securing the permanent loan
is recorded in the official records of Riverside County. Absent prepayment or acceleration, the
Borrower agrees to pay the loan in annual payments equal to 67.5 percent of the residual
receipts as defined in the loan agreement. Notwithstanding any other provision, unless the loan
is paid earlier, the outstanding principal and accrued unpaid interest is payable 55 years from
the date of recording of the release of construction covenants. The release of construction
covenants was recorded on August 8, 2012. At June 30, 2021, the total outstanding balance
of$12,461,905 includes interest of$2,724,905.
The City's Low and Moderate-Income Housing Asset Special Revenue Fund has a note
receivable in the amount of $1,100,000 from LMV II Affordable, LP dated October 12, 2010.
The proceeds of the loan assisted with the rehabilitation of 64 units of affordable housing for
families of the Lakeview II Affordable Housing Project. The loan is to be repaid with interest in
arrears in annual installments on July 1, commencing July 1 in the calendar year immediately
following the calendar year in which the deed of trust securing the second permanent loan is
recorded in the official records of Riverside County. Absent prepayment or acceleration, the
Borrower agrees to pay the loan in annual payments equal to 30 percent of the residual receipts
as defined in the loan agreement. Notwithstanding any other provision, unless the loan is paid
earlier, the outstanding principal and accrued unpaid interest is payable 55 years from the date
of recording of the release of construction covenants evidencing completion of the
rehabilitation. The release of construction covenants was recorded on August 8, 2012. At
June 30, 2021, the total outstanding balance of$1,109,910 includes interest of$9,910.
The City's Affordable Housing Special Revenue Fund has a note receivable in the amount of
$695,250 from Mission Trail LE, LP dated May 1, 2018. The loan was given for the purpose of
providing construction and permanent financing for the development of the Mission Trail
Apartments Affordable Housing Project. The Borrower shall make annual repayments of the
Loan on June 30 of each year following completion of construction of the Improvements. The
City Land Loan shall be repayable from 50 percent of the residual receipts paid annually after
completion of the Development. All residual receipts payments to the City shall be paid toward
the Loan until the Loan is paid in full.
Notwithstanding any other provision, unless the loan is repaid earlier, the outstanding principal
and accrued interest is payable 55 years from the date of recordation of a Notice of Completion
for the Development. At June 30, 2021, the total outstanding balance of $706,031 includes
accrued interest of$10,781.
55
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 6: Notes Receivable (Continued)
The City's Affordable Housing Special Revenue Fund has a note receivable in the amount of
$2,000,000 from Mission Trail LE, LP dated May 1, 2018. The proceeds of the loan were used
for the acquisition of the property by the developer for the Mission Trail Apartments Affordable
Housing Project. The term of this loan shall commence on May 1, 2018 and shall expire on
December 31, 2077, notwithstanding any other provisions, unless the loan is paid earlier. The
City Land Loan shall be repayable from 50 percent of the residual receipts paid annually after
completion of the Development. All residual receipts payments to the City shall be paid toward
the Loan until the Loan is paid in full. After the Loan is completely repaid, all residual receipts
payments to the City shall be paid to the City Land Loan. At June 30, 2021, the total
outstanding balance of$2,031,014 includes accrued interest of$31,014.
The City's Low and Moderate-Income Housing Asset Special Revenue Fund has a note
receivable in the amount of$7,520,000 from Mission Trail LE. LP dated May 1, 2018. The loan
was given for the purpose of providing construction and permanent financing for the
development of the Mission Trail Apartments Affordable Housing Project. The City LMIHAF
Loan shall be repayable from 50 percent of the residual receipts paid annually after completion
of the Development. All residual receipts payments to the City shall be paid toward the Loan
until the Loan is paid in full. After the Loan is completely repaid, all residual receipts payments
to the City shall be paid to the City Land Loan. After the City Land Loan is completely repaid,
all residual payments shall be applied to the City LMIHAF Loan. At June 30, 2021, the total
outstanding balance of$7,636,612 includes accrued interest of$116,612.
The City's Low and Moderate-Income Housing Asset Special Revenue Fund has a note
receivable in the amount of$5,074,276 due from Mission Cottages LP dated April 1, 2019. The
loan was given for the purpose of repaying the Predevelopment Loan, to pay for property and
for the payment of project costs for the Cottages at Mission Trail Affordable Housing Project.
The City's LMIHAF Loan shall be repayable from fifty percent (50%) of the residual receipts
paid annually on or before June 30 each year following completion of the Development. All
residual receipts payments to the City shall be paid toward the Loan until the Loan is completely
repaid, all residual receipt payments to the City shall be paid to the LMIHAF Loan. Payments
on the City's LMIHAF Loan shall be credited toward accrued interest first and then outstanding
principal. The term of this loan shall commence on April 1, 2019 and shall continue until the
fifty-fifth (55th) anniversary of the date of recording the Notice of Completion for the
Development. At June 30, 2021 the total outstanding balance of$5,416,685 includes accrued
interest of$342,409.
The City's Affordable Housing Special Revenue Fund has a note receivable in the amount of
$646,974 from Mission Cottages LP. Dated April 1, 2019. The proceeds of the loan were used
for the purpose of providing construction and permanent financing for the development of the
Cottages at Mission Trail Affordable Housing Project. The Loan shall be repaid from fifty
percent(50%)of the residual receipts paid annually on or before June 30 of each year following
completion of construction of the improvements. All residual receipts payments made to the
City shall be applied toward the Loan until the Loan is completely repaid. After the City Loan
is completely repaid, all residual receipts payments to the City shall be applied to the City
LMIHAF Loan. Payments on the Loan shall be credited toward accrued interest first and then
outstanding principal. The term of this loan shall commence on April 1,2019 and shall continue
until the fifty-fifth (551h) anniversary of the date of recording the Notice of Completion for the
Development.
56
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 6: Notes Receivable (Continued)
At June 30, 2021, the total outstanding balance of $690,631 includes accrued interest of
$43,657.
The City's Low and Moderate-Income Housing Asset Special Revenue Fund has a note
receivable in the amount of $65,000 due from Habitat for Humanity dated August 31, 2018.
The proceeds of the loan shall be used for payment of the purchase price for the property and
development costs of the affordable housing project. There are no payments of principal or
interest due on this note provided that no event of default has occurred. The City Loan shall
be deemed repaid with the proceeds of the City Second Mortgage Assistance upon execution
of a Deed of Trust by the Qualified Buyer in favor of the City Second Mortgage Assistance
constituting a credit against the outstanding City Loan Amount. At June 30, 2021, the total
outstanding balance is$0.
The City's Low and Moderate-Income Housing Asset Special Revenue Fund has a note
receivable in the amount of$35,000 to the qualified buyer of the affordable unit and is secured
by the affordable unit. The agreement was approved August 14, 2018 with the promissory note
completed and recorded on October 7, 2020. The purpose for assistance was to supply a
portion of the purchase price of the property to the qualified buyer. The First Mortgage was
entered into concurrently with the sale of the affordable unit to the qualified buyer. The Second
Mortgage Assistance by the Habitat for Humanity and the City's Third Mortgage Assistance did
not result in any cash proceeds to the Developer. The affordable Unit was built on the City's
property for the appraised value of $35,000. The City assistance was converted to a grant
upon completion of construction and sale to the qualified buyer. The City Third Lien Loan bears
no interest and payments are not due during the dwelling's affordability covenants period of
forty-five (45) years unless an event of acceleration occurs such as a prohibited transfer of
property. As of June 30, 2021, the total outstanding balance is $35,000.
The City's Low and Moderate-Income Housing Asset Special Revenue Fund has a note
receivable in the amount of$950,000 due from Mission Cottages LP. The agreement is dated
December 8, 2020 with funding provided on April 12, 2021.The loan was given for the purpose
of filling the developer's short-term gap in project funding due to the requirement that the
construction contract would be repaid in full prior to or concurrent with the funding of permanent
financing. The developer required financial assistance of the City by way of the Bridge Loan
to repay the construction contract in a timely manner. Proceeds of the Bridge Loan where used
solely for payment of the construction loan. Due to an anticipated increase in the amount of
the Project's permanent loan, the Project developer anticipates payment in full in November
2021 upon conversion to permanent financing. The outstanding principal balance bears simple
interest at the rate of three percent (3%) per annum until funds are repaid in full. As of June
30, 2021, the total outstanding balance is$950,000.
57
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 7: Capital Assets
The following is a summary of changes in the Governmental Activities Capital Assets:
Beginning Ending
Balance Transfer Additions Deletions Balance
Governmental Activities:
Capital assets,not being depreciated:
Land $ 4,345,218 $ - $ 209,683 $ $ 4,554,901
Construction-in-progress 36,160,575 (859,261) 10,763,242 46,064,556
Total Capital Assets,
Not Being Depreciated 40,505,793 (859,261) 10,972,925 50,619,457
Capital assets,being depreciated:
Building and Structures 20,216,263 838,732 21,054,995
Improvement other than buildings 9,119,569 133,663 9,253,232
Machinery and Equipment 2,340,258 48,519 (9,286) 2,379,491
Furniture and Fixtures 957,742 2,683 960,425
Automotive Equipment 3,794,028 116,544 (28,918) 3,881,654
Technology Equipment and Software 879,190 - 57,955 937,145
Infrastructure 236,473,721 859,261 - 237,332,982
Total Capital Assets,
Being Depreciated 273,780,771 859,261 1,198,096 (38,204) 275,799,924
Less accumulated depreciation:
Building and Structures (7,459,243) - (621,680) (8,080,923)
Improvement other than buildings (6,676,917) (294,740) (6,971,657)
Machinery and Equipment (1,421,427) (194,423) 6,965 (1,608,885)
Furniture and Fixtures (578,745) (121,291) - (700,036)
Automotive Equipment (2,300,496) (343,881) 28,918 (2,615,459)
Technology Equipment and Software (700,301) (66,551) - (766,852)
Infrastructure (113,139,228) (6,224,145) - (119,363,373)
Total Accumulated
Depreciation (132,276,357) (7,866,711) 35,883 (140,107,185)
Total Capital Assets,
Being Depreciated,Net 141,504,414 859,261 (6,668,615) (2,321) 135,692,739
Governmental Activities
Capital Assets,Net $ 182,010,207 $ - $ 4,304,310 $ (2,321) $ 186,312,196
58
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 7: Capital Assets (Continued)
Depreciation expense was charged to functions/programs in the Statement of Activities as
follows:
Governmental Activites
General Government $ 194,294
Public Safety 398,552
Public Services 6,413,020
Community Services 305,077
Internal Service Fund 555,768
$ 7,866,711
The following is a summary of changes in the Business-type Activities Capital Assets:
Beginning Ending
Balance Additions Deletions Balance
Business-type Activities:
Capital assets,not being depreciated:
Construction-in-progress $ 19,099,170 $ $ $ 19,099,170
Total Capital Assets,
Not Being Depreciated 19,099,170 19,099,170
Capital assets,being depreciated:
Building and Structures 470,767 470,767
Improvement other than buildings 8,822,847 8,822,847
Machinery and Equipment 588,211 28,196 616,407
Furniture and Fixtures 350,924 47,644 398,568
Automotive Equipment 425,011 - 425,011
Total Capital Assets,
Being Depreciated 10,657,760 75,840 10,733,600
Less accumulated depreciation:
Building and Structures (61,567) (21,447) (83,014)
Improvement other than buildings (2,469,426) (352,914) (2,822,340)
Machinery and Equipment (96,536) (83,259) (179,795)
Furniture and Fixtures (39,744) (39,898) (79,642)
Automotive Equipment (40,578) (14,167) (54,745)
Total Accumulated
Depreciation (2,707,851) (511,685) (3,219,536)
Total Capital Assets,
Being Depreciated,Net 7,949,909 (435,845) 7,514,064
Governmental Activities
Capital Assets,Net $ 27,049,079 $ (435,845) $ $ 26,613,234
"Adjustment was made to properly classlty assets
Business-type activities depreciation expense for capital assets for year ended June 30, 2021,
is $511,685.
59
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities
Years of Amount
Date of Issue Maturity Rate of Interest Authorized
Local Agency Revenue Bonds:
2012 Series A 7/12 2014-2039 1.50-5.25% $ 3,450,000
2012 Series B 11/12 2015-2031 2.00-5.125% 15,345,000
2012 Series C 12/12 2016-2043 2.00-5.00% 5,345,000
2013 Series A 5/13 2016-2044 1.75-5.00% 3,620,000
2013 Series B 7/13 2015-2021 2.00-3.25% 4,215,000
2013 Series C 7/13 2014-2034 2.00-5.25% 13,615,000
2014 Series A 1/14 2017-2045 2.25-5.75% 7,505,000
2014 Series B 7/14 2016-2041 3.00-5.00% 18,210,000
2015 Series 2/15 2016-2041 2.00-5.00% 108,845,000
2015 Series A 2/15 2017-2045 2.00-3.65% 3,200,000
2015 Series B 5/15 2017-2021 2.00-5.00% 7,590,000
2017 Series 12/17 2019-2045 2.00-4.00% 7,975,000
2019 Series A 12/19 2021-2037 2.73% 7,145,000
Lease Revenue Bonds:
2013 Series A 9/13 2014-2032 3.00-5.00% 14,460,000
2016 Series A 11/16 2017-2046 1.25-3.75% 10,410,000
Tax Allocation Revenue Bonds:
2020 Series A 6/20 2025-2031 4.00% 12,875,000
2021 Series 5/21 2021-2044 0.21 -3.21% 34,970,000
Certificate of Participation
2014 Series A 10/4 2015-2039 2.00-5.00% 7,965,000
60
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
The following is a summary of the changes in long-term obligations:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Bonds Payable (Direct Borrowings):
Public Financing Authority:
Local Agency Revenue Bonds:
2012 Series A $ 3,025,000 $ - $ (3,025,000) $ - $ -
2012 Series B 11,330,000 - (11,330,000) - -
2012 Series C 5,275,000 - (5,275,000) - -
2013 Series A 3,495,000 - (3,495,000) - -
2013 Series B 425,000 - (425,000) - -
2013 Series C 10,590,000 - (10,590,000) - -
2014 Series A 7,405,000 - (7,405,000) - -
2014 Series B 16,265,000 - (530,000) 15,735,000 575,000
2015 Series 83,370,000 - (2,140,000) 81,230,000 2,360,000
2015 Series A 3,055,000 - (45,000) 3,010,000 50,000
2015 Series B 1,810,000 - (1,810,000) - -
2019 Series A 7,145,000 - (320,000) 6,825,000 260,000
Recreation Financing Authority:
Lease Revenue Bonds:
2013 Series A 10,240,000 - (675,000) 9,565,000 700,000
Facilities Financing Authority:
Local Agency Revenue Bonds:
2017 Series 4,735,000 - (135,000) 4,600,000 140,000
Lease Revenue Bonds:
2016 Series A 9,595,000 - (255,000) 9,340,000 255,000
Tax Allocation Revenue Refunding Bonds:
2020 Series A 12,875,000 - - 12,875,000 -
Local Agency Revenue Refunding Bonds:
2021 Series - 34,970,000 - 34,970,000 1,295,000
Certificates of Participation :
2014 Series A 6,520,000 - (250,000) 6,270,000 255,000
Subtotal 197,155,000 34,970,000 (47,705,000) 184,420,000 5,890,000
Add (Less)Deferred Amounts:
Bond Premiums 12,016,361 - (879,738) 11,136,623 -
Bond Discounts (197,120) - 73,191 (123,929) -
Subtotal 11,819,241 - (806,547) 11,012,694 -
Total Bonds $ 208,974,241 $ 34,970,000 $ (48,511,547) $ 195,432,694 $ 5,890,000
Capital Leases Payable (Direct borrowings):
Capital Lease-Street Lights $ 3,403,569 $ - $ (174,714) $ 3,228,855 $ 184,598
Total Capital Leases $ 3,403,569 $ - $ (174,714) $ 3,228,855 $ 184,598
61
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
In February 1990, the Public Financing Authority was authorized to issue $500,000,000 in
revenue bonds for the purpose of enabling the Public Financing Authority to acquire certain
qualified obligations (the "Local Obligations")of the City or the former Redevelopment Agency
for whose benefit the program has been designed, or of any other local agencies in the
State of California, including Community Facilities District and Special Assessment District
(the "Local Agencies"). The Bonds were issued to provide funds to finance the acquisition or
construction of land, buildings, equipment and other capital improvements. The bonds will
constitute special obligations of the Public Financing Authority and will be issued in Series from
time to time pursuant to Supplemental Indentures. These bonds will be payable solely from the
repayment by Local Agencies of their obligations and any available surplus revenues.
2012 Series A
In July 2012, $3,450,000 principal amount of 2012 Local Agency Revenue Bonds, Series A,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of $25,000 to $255,000 from September 1, 2013 through September 1, 2038.
Interest payments ranging from 1.5% to 5.25% are due from March 1, 2013 through
September 1, 2038. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1, 2012 at specified redemption prices. On March 1, 2014, $60,000
in bonds were redeemed at 103%. The bond was fully refunded at June 30, 2021.
2012 Series B
In November 2012, $15,345,000 principal amount of 2012 Local Agency Revenue Bonds,
Series B, was issued in accordance with the indenture described above. The bonds are due in
annual installments of $615,000 to $1,360,000 from September 2, 2014 through
September 2, 2030. Interest payments ranging from 2.0% to 5.125% are due from
March 2, 2013 through September 2, 2030. The bonds are subject to call and redemption prior
to their stated maturity commencing March 2, 2013 at specified redemption prices. The bond
was fully refunded at June 30, 2021.
2012 Series C
In December 2012, $5,345,000 principal amount of 2012 Local Agency Revenue Bonds,
Series C,was issued in accordance with the indenture described above. The bonds are due in
annual installments of $5,000 to $1,200,000 from September 1, 2015 through
September 1, 2042. Interest payments ranging from 2.0%to 5.0% are due from March 1, 2013
through September 1, 2042. The bonds are subject to call and redemption prior to their stated
maturity commencing March 1, 2013 at specified redemption prices. The bond was fully
refunded at June 30, 2021.
2013 Series A
In May 2013, $3,620,000 principal amount of 2013 Local Agency Revenue Bonds, Series A,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of $15,000 to $310,000 from September 1, 2015 through September 1, 2043.
Interest payments ranging from 1.75% to 5.0% are due from March 1, 2014 through
September 1, 2043. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1, 2014 at specified redemption prices. The bond was fully refunded
at June 30, 2021.
62
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
2013 Series B
In July 2013, $4,215,000 principal amount of 2013 Local Agency Revenue Bonds, Series B,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of $425,000 to $705,000 from September 1, 2014 through September 1, 2020.
Interest payments ranging from 2.00% to 3.25% are due from September 1, 2013 through
September 1, 2020. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1, 2013 at specified redemption prices. The bond was fully refunded
at June 30, 2021.
2013 Series C
In July 2013, $13,615,000 principal amount of 2013 Local Agency Revenue Bonds, Series C,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of$475,000 to $1,025,000 from September 1, 2014 through September 1, 2033.
Interest payments ranging from 2.00% to 5.25% are due from September 1, 2013 through
September 1, 2033. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1, 2033 at specified redemption prices. The bond was fully refunded
at June 30, 2021.
2014 Series A
In January 2014, $7,505,000 principal amount of 2014 Local Agency Revenue Bonds,
Series A, was issued in accordance with the indenture described above. The bonds are due in
annual installments of $10,000 to $705,000 from September 1, 2016 through
September 1, 2044. Interest payments ranging from 2.25% to 5.75% are due from
September 1, 2014 through September 1, 2044. The bonds are subject to call and redemption
prior to their stated maturity commencing September 1, 2023 at specified redemption prices.
The bond was fully refunded at June 30, 2021.
2014 Series B
In July 2014, $18,210,000 principal amount of 2014 Local Agency Revenue Bonds, Series B,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of$260,000 to $1,255,000 from September 1, 2015 through September 1, 2040.
Interest payments ranging from 3.00% to 5.00% are due from March 1, 2015 through
September 1, 2040. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1,2024 at specified redemption prices.At June 30,2021,the Authority
has a cash reserve balance for debt service of $1,462,311, which is sufficient to cover the
Bond Indenture Reserve Requirement of$1,444,538.
In the event of a default, the Trustee may pursue any available remedy at law or in equity to
enforce the payment of the principal of and interest and premium (if any)on the Bonds, and to
enforce any rights of the Trustee under or with respect to the Indenture. Future debt
requirements for the 2014 Series B Local Agency Revenue Bonds are as follows:
63
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
2014E Local Agency Revenue Bonds
Year Ending June 30 Principal Interest Total
2022 $ 575,000 $ 708,688 $ 1,283,688
2023 630,000 678,563 1,308,563
2024 670,000 646,063 1,316,063
2025 720,000 611,313 1,331,313
2026 765,000 580,403 1,345,403
2026-2031 4,475,000 2,438,934 6,913,934
2031-2036 5,050,000 1,258,019 6,308,019
2036-2041 2,850,000 375,663 3,225,663
Totals $ 15,735,000 $ 7,297,646 $ 23,032,646
2015 Series
In February 2015, $108,845,000 principal amount of 2015 Series Local Agency Revenue
Bonds, was issued in accordance with the indenture. The bonds are due in annual
installments of$655,000 to $8,405,000 from September 1, 2015 through September 1, 2040.
Interest payments ranging from 2.0% to 5.0% are due from September 1, 2015 through
September 1, 2040. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1, 2025 at specified redemption prices. On September 1, 2018, the
bonds were partially redeemed in the amount of$9,415,000. On December 24,2019,the bonds
were partially redeemed in the amount of $6,780,000. At June 30, 2021, the Authority has a
cash reserve balance for debt service of $8,599,096, which is sufficient to cover the
Bond Indenture Reserve Requirement of$8,256,847.
In the event of a default, the Trustee may pursue any available remedy at law or in equity to
enforce the payment of the principal of and interest and premium (if any)on the Bonds, and to
enforce any rights of the Trustee under or with respect to the Indenture. Future debt
requirements for the 2015 Series Local Agency Revenue Bonds are as follows:
2015 Local Agency Re\enue Refunding Bonds
Year Ending June 30 Principal Interest Total
2022 $ 2,360,000 $ 4,002,500 $ 6,362,500
2023 2,585,000 3,878,875 6,463,875
2024 2,850,000 3,743,000 6,593,000
2025 3,125,000 3,593,625 6,718,625
2026 3,410,000 3,430,250 6,840,250
2026-2031 21,315,000 14,229,375 35,544,375
2031-2036 31,225,000 7,715,875 38,940,875
2036-2041 14,360,000 1,227,750 15,587,750
Totals $ 81,230,000 $ 41,821,250 $ 123,051,250
64
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
2015 Series A
In February 2015, $3,200,000 principal amount of 2015 Local Agency Revenue Bonds,
Series A, was issued in accordance with the indenture described above. The bonds are due in
annual installments of $30,000 to $235,000 from September 1, 2016 through
September 1, 2044. Interest payments ranging from 2.0% to 3.625% are due from
September 1, 2015 through September 1, 2044. The bonds are subject to call and redemption
prior to their stated maturity commencing September 1, 2023 at specified redemption prices.
At June 30,2021,the Authority has a cash reserve balance for debt service of$277,678,which
is sufficient to cover the Bond Indenture Reserve Requirement of$239,259.
In the event of a default, the Trustee may pursue any available remedy at law or in equity to
enforce the payment of the principal of and interest and premium (if any)on the Bonds, and to
enforce any rights of the Trustee under or with respect to the Indenture. Future debt
requirements for the 2015 Series A Local Agency Revenue Bonds are as follows:
2015A Local Agency Revenue Bonds
Year Ending June 30 Principal Interest Total
2022 $ 50,000 $ 102,538 $ 148,519
2023 55,000 101,388 152,538
2024 60,000 100,019 156,388
2025 65,000 98,294 160,019
2026 70,000 96,269 163,294
2026-2031 430,000 444,566 857,572
2031-2036 595,000 359,822 939,641
2036-2041 825,000 234,266 1,038,181
2041-2046 860,000 64,706 1,144,234
Totals $ 3,010,000 $ 1,601,868 $ 4,760,386
2015 Series B
In May 2015, $7,590,000 principal amount of 2015 Local Agency Revenue Bonds, Series B,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of$1,270,000 to$1,810,000 from September 1, 2016 through September 1, 2020.
Interest payments ranging from 2.0% to 5.0% are due from March 1, 2016 through
September 1, 2020. The bonds are not subject to call and redemption prior to their stated
maturity. At June 30, 2021, the Reserve Fund is fully funded by the deposit of the
Reserve Surety Policy. The bond was fully paid at June 30, 2021.
65
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
2019 Series A
In December 2019,$7,145,000 principal amount of 2019 Series Local Agency Revenue Bonds,
was issued in accordance with the indenture. The bonds are due in annual
installments of $260,000 to $600,000 from September 1, 2020 through September 1, 2036.
Interest payments 2.73% per annum are due from March 1, 2020 through
September 1, 2036. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1,2026 at specified redemption prices. At June 30,2021,the Reserve
Fund is fully funded by the deposit of the Reserve Surety Policy. The City completed the
refunding to reduce its total service payments by $585,098 and to obtain an economic gain
(difference between the present value of the old and new debt service payments)of$469,849.
In the event of a default, the Trustee may pursue any available remedy at law or in equity to
enforce the payment of the principal of and interest and premium (if any)on the Bonds, and to
enforce any rights of the Trustee under or with respect to the Indenture. Future debt
requirements for the 2019 Series Local Agency Revenue Bonds are as follows:
2019 Local Agency Revenue Refunding Bonds
Year Ending June 30 Principal Interest Total
2022 $ 260,000 $ 182,774 $ 442,774
2023 285,000 175,334 460,334
2024 300,000 167,349 467,349
2025 320,000 158,886 478,886
2026 340,000 149,877 489,877
2026-2031 2,050,000 592,820 2,642,820
2031-2036 2,670,000 270,680 2,940,680
2036-2041 600,000 8,190 608,190
Totals $ 6,825,000 $ 1,705,910 $ 8,530,910
2017 Series
On December 21, 2017 $7,975,000 principal amount of Lease Revenue Bonds, Series 2017,
was issued by the Lake Elsinore Facilities Financing Authority to finance the acquisition,
construction and installation of certain capital improvements owned by the City for Community
Facilities District 2003-2 (Canyon Hills) Improvement Area B. The bonds are due in annual
installments of $105,000 to $450,000 from September 1, 2018 through September 1, 2044.
Interest payments ranging from 2.00% to 4.00% are due from March 1, 2018 through
March 1, 2044. The bonds are subject to call and redemption prior to their stated maturity
commencing March 1, 2038 at specified redemption prices. On September 1, 2018, the bonds
were partially redeemed in the amount of $3,005,000. At June 30, 2021, the cash reserve
balance of$295,383 is sufficient to cover the Reserve Requirement of$295,331.
66
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
In the event of a default, the Trustee may pursue any available remedy at law or in equity to
enforce the payment of the principal of and interest and premium (if any)on the Bonds, and to
enforce any rights of the Trustee under or with respect to the Indenture. Future debt
requirements for the 2017 Series Local Agency Revenue Bonds are as follows:
2017 Local Agency Revenue Bonds
Year Ending June 30 Principal Interest Total
2022 $ 140,000 $ 152,794 $ 292,794
2023 140,000 149,994 289,994
2024 145,000 146,963 291,963
2025 150,000 143,550 293,550
2026 150,000 139,894 289,894
2026-2031 810,000 634,409 1,444,409
2031-2036 935,000 496,513 1,431,513
2036-2041 1,090,000 317,913 1,407,913
2041-2046 1,040,000 85,200 1,125,200
Totals $ 4,600,000 $ 2,267,230 $ 6,867,230
2020 Series A
In June 2020, $12,875,000 principal amount of Tax Allocation Revenue Refunding Bonds,
Series 2020A, was issued to make two separate loans to the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore for the purpose of refinancing certain
obligations, to purchase debt service reserve insurance policies for the Bonds, and to pay
certain costs of issuance. The bonds are due in annual installments of $1,270,000 to
$9,475,000 from September 1, 2024 through September 1, 2030. Interest payments at 4% per
annum are due from September 1,2020 through September 1,2030.The bonds are not subject
to redemption prior to their stated maturity. The reserve fund is fully funded by the deposit of
the reserve surety policy.
In the event of a default, the Trustee may pursue any available remedy at law or in equity to
enforce the payment of the principal of and interest and premium (if any)on the Bonds, and to
enforce any rights of the Trustee under or with respect to the Indenture. Future debt
requirements for the 2020 Series A Tax Allocation Revenue Refunding Bonds are as follows:
2020A Tax Allocation Revenue Bonds
Year Ending June 30 Principal Interest Total
2022 $ - $ 515,000 $ 515,000
2023 - 515,000 515,000
2024 - 515,000 515,000
2025 1,270,000 489,600 1,759,600
2026 1,750,000 429,200 2,179,200
2026-2031 9,855,000 1,016,300 10,871,300
Totals $ 12,875,000 $ 3,480,100 $ 16,355,100
67
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
2021 Series A
In May 2021, $34,970,000 principal amount of Local Agency Revenue Refunding Bonds,
Series 2021, was issued to acquire special tax refunding obligations of community facilities
districts, purchase a municipal bond insurance policy to guarantee payment of the principal of
and interest on the bonds, purchase debt service reserve insurance policy for deposit on the
reserve fund, and pay certain costs of issuance of the bonds. The bonds are due in annual
installments of$1,295,000 to$2,115,000 from September 1, 2021 through September 1, 2044.
Interest payments ranging from 0.212% to 3.212% are due from September 1, 2021 through
September 1, 2021. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1, 2036 at specified redemption prices. The reserve fund is fully
funded by the deposit of the reserve surety policy. The City completed the refunding to reduce
its total service payments by$9,939,091 and to obtain an economic gain (difference between
the present value of the old and new debt service payments) of$3,800,607.
In the event of a default, the Trustee may pursue any available remedy at law or in equity to
enforce the payment of the principal of and interest and premium (if any)on the Bonds, and to
enforce any rights of the Trustee under or with respect to the Indenture. Future debt
requirements for the 2021 Series Local Agency Revenue Refunding Bonds are as follows:
2021 Local Agency Revenue Refunding Bonds
Year Ending June 30 Principal Interest Total
2022 $ 1,295,000 $ 200,777 $ 1,495,777
2023 1,430,000 766,187 2,196,187
2024 1,455,000 761,726 2,216,726
2025 1,500,000 754,276 2,254,276
2026 1,525,000 743,491 2,268,491
2026-2031 8,355,000 3,372,881 11,727,881
2031-2036 7,830,000 2,410,154 10,240,154
2036-2041 5,805,000 1,478,805 7,283,805
2041-2046 5,775,000 382,067 6,157,067
Totals $ 34,970,000 $10,870,364 $ 45,840,364
Lease Revenue Bonds
2013 Series A
In September 2013, $14,460,000 principal amount of 2013 Revenue Refunding Bonds,
Series A, was issued in accordance with the indenture to provide funds to advance refund the
2000 Revenue Refunding Bonds, Series A. The original purpose of the prior bonds was to
finance the Authority's lease of certain City recreation facilities from the City for lease back to
the City. The term bonds are due in annual installments of $565,000 to $1,075,000 from
February 1, 2014 through February 1, 2032; interest rates varying from 3.00% to 5.00%. The
bonds are subject to call and redemption prior to their stated maturity commencing
February 1, 2024, at specified redemption prices. At June 30, 2021, the reserve fund is fully
funded by the deposit of the reserve surety policy.
68
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
In the event of default, the Trustee will be entitled to sue to enforce payment and receive any
and all amounts from any monies available for such purpose in any manner provided by law.
Future debt requirements for the 2013 Series A Revenue Refunding Bonds are as follows:
2013A Lease Revenue Refunding Bonds
Year Ending June 30 Principal Interest Total
2022 $ 700,000 $ 427,400 $ 1,127,400
2023 730,000 399,400 1,129,400
2024 760,000 370,200 1,130,200
2025 790,000 339,800 1,129,800
2026 820,000 307,213 1,127,213
2026-2031 4,690,000 955,988 5,645,988
2031-2036 1,075,000 53,750 1,128,750
Totals $ 9,565,000 $ 2,853,751 $12,418,751
2016 Series A
In November 2016, $10,410,000 principal amount of Lease Revenue Bonds, Series 2016A,
was issued to fund the acquisition, construction and installation of certain capital improvements
owned by the city, purchase municipal bond insurance to guarantee payment of principal and
interest. The bonds are due in annual installments of$80,000 to $540,000 from April 1, 2017
through April 1, 2046. Interest payments ranging from 1.25% to 3.75% are due from
April 1, 2017 through April 1, 2046. The certificates are subject to call and redemption prior to
their stated maturity commencing April 1, 2026, at specified redemption prices. The reserve
fund is fully funded by the deposit of the reserve surety policy.
In the event of default, the Trustee will be entitled to sue to enforce payment and receive any
and all amounts from any monies available for such purpose in any manner provided by law.
Future debt requirements for the 2016 Series A Lease Refunding Bonds are as follows:
2016A Lease Revenue Bonds
Year Ending June 30 Principal Interest Total
2022 $ 255,000 $ 302,388 $ 557,388
2023 260,000 298,563 558,563
2024 265,000 294,013 559,013
2025 270,000 288,713 558,713
2026 275,000 283,313 558,313
2026-2031 1,550,000 1,245,413 2,795,413
2031-2036 1,815,000 976,169 2,791,169
2036-2041 2,130,000 661,388 2,791,388
2041-2046 2,520,000 270,725 2,790,725
Totals $ 9,340,000 $ 4,620,685 $13,960,685
69
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
Certificates of Participation
In October 2014, $7,965,000 principal amount of Certificates of Participation, Series 2014A,
was issued for various street improvement projects. The certificates are due in annual
installments of $205,000 to $480,000 from June 1, 2015 through June 1, 2039. Interest
payments ranging from 2.00%to 5.00% are due from June 1, 2015 through June 1, 2039. The
certificates are subject to call and redemption prior to their stated maturity commencing
June 1, 2032, at specified redemption prices. The reserve fund is fully funded by the deposit of
the reserve surety policy.
In the event of a default, the Trustee may pursue any available remedy at law or in equity to
enforce the payment of the principal of and interest and premium (if any)on the Bonds, and to
enforce any rights of the Trustee under or with respect to the Indenture. Future debt
requirements for the Certificates of Participation, Series 2014 A, are as follows:
2014 Certificates of Participation
Year Ending June 30 Principal Interest Total
2022 $ 255,000 $ 240,938 $ 495,938
2023 260,000 235,838 495,838
2024 265,000 229,988 494,988
2025 275,000 223,363 498,363
2026 280,000 215,800 495,800
2026-2031 1,580,000 909,200 2,489,200
2031-2036 1,975,000 519,000 2,494,000
2036-2041 1,380,000 112,000 1,492,000
Totals $ 6,270,000 $ 2,686,127 $ 7,464,127
Revenues Pledged
The City has pledged a portion of future Measure A revenues to repay the Certificates of
Participation 2014 Series A. The City's certificates of participation are payable solely from the
Measure A revenues. Total principal and interest remaining on the certificates of participation
is $8,956,127, payable through fiscal year 2039. For the current year, principal and interest
paid by Measure A revenues were $250,000 and $245,938, respectively.
Capital Lease
On May 30, 2017 the City entered into a Purchase and Sale Agreement with
Southern California Edison with the intent to purchase 3,186 LS-1 electric streetlight facilities
located within the City of Lake Elsinore. On November 1, 2018, the City entered into an
Equipment Lease/Purchase Agreement with Banc of America Leasing & Capital, LLC to
finance the acquisition, installation, and retrofitting of these streetlights. The acquisition
amount is$3,459,380 with payments due in bi-annual installments of$362,229 from December
1, 2019 through December 1, 2033. The contract rate is 5.58% per annum. The balance on
the lease payable at June 30, 2021, was $3,228,855.
70
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 8: Long-Term Liabilities (Continued)
Future debt requirements for the capital lease are as follows:
Year Ending 2020A Lease Revenue Bonds
June 30 Principal Interest Total
2022 $ 184,598 $ 177,631 $ 362,229
2023 195,043 167,186 362,229
2024 206,078 156,151 362,229
2025 217,737 144,492 362,229
2026 230,057 132,172 362,229
2026-2031 1,360,895 450,249 1,811,144
2031-2034 834,447 71,124 905,571
Totals $ 3,228,855 $ 1,299,005 $ 4,527,860
The total leased assets by major asset class consisted of the following:
June 30, 2021
Equipment under capitalized lease, at cost $ 3,459,380
Accumulated depreciation (115,716)
Equipment under capitalized lease, net $ 3,343,664
Compensated Absences
The following is a summary of changes in compensated absences for the year ended
June 30, 2021:
Balance at Balance at Due Within
July 1, 2020 Additions Deletions June 30, 2021 One Year
Governmental Activities $ 1,331,619 $ 550,211 $ 537,955 $ 1,343,875 $ 137,744
Total $ 1,331,619 $ 550,211 $ 537,955 $ 1,343,875 $ 137,744
Compensated absences do not have a fixed repayment schedule and become payable when
leave is used by employees. Governmental activities' compensated absences are typically
liquidated through the General Fund.
Note 9: Special Assessment District Bonds
The payment of these bonds is secured by valid assessment liens upon certain lands in each
district and are not direct liabilities of the City. Reserves have been established to meet
delinquencies should they occur. Neither the faith and credit nor the taxing power of the
City of Lake Elsinore is pledged to the payment of the bonds. If delinquencies occur beyond
the amounts held in those reserves, the City has no duty to pay those delinquencies out of any
other available funds. Therefore, the outstanding balances of these bonds are not reflected in
these financial statements. A summary of Special Assessment Bonds outstanding, for which
the City has no liability or commitment, or as follows:
71
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 9: Special Assessment District Bonds (Continued)
Outstanding at
Original Issue June 30, 2021
Assessment District NO. 93-1 Refunding Improvement
Bonds, 2012 Series B $ 15,345,000 $ 10,560,000
Total Assessment District Bonds $ 10,560,000
Note 10: Community Facilities District Bonds
These bonds are authorized pursuant to the Mello-Roos Community Facilities District
Act of 1982 as amended, and are payable from special taxes levied on property within the
Community Facility Districts according to a methodology approved by the voters within the
District and by the City Council of the City of Lake Elsinore. Neither the faith and credit nor
taxing power of the City of Lake Elsinore is pledged to the payment of the bonds. Reserves
have been established from the bond proceeds to meet delinquencies should they occur. If
delinquencies occur beyond the amounts held in those reserves, the City has no duty to pay
the delinquency out of any available funds of the City. Therefore, the outstanding balances of
these bonds are not reflected in these financial statements. A summary of Mello-Roos Bonds
outstanding are as follows:
Outstanding
Original Amount at
Issue June 30, 2021
Community Facilities District 90-2 Tuscany Hills (2007 Series A) $ 7,340,000 $ 3,995,000
Community Facilities District 2005-5 Wasson Canyon (2012A Series) 3,450,000 2,945,000
Community Facilities District 2006-1 Summerly(2013 Series) 3,620,000 3,455,000
Community Facilities District 2003-2 Canyon Hills IA-C (2012 Series C) 5,345,000 5,245,000
Community Facilities District 98-1 Summerhill (2013C Series) 13,615,000 504,000
Community Facilities District 2003-2 Canyon Hills IA-D (2014A Series) 7,505,000 7,395,000
Community Facilities District 2003-2 IA-D Canyon Hills (2016 Series A) 16,495,000 15,980,000
Community Facilities District 2003-2 IA-A Canyon Hills(2014 Series) 10,895,000 9,235,000
Community Facilities District 2003-2 IA-C Canyon Hills (2014 Series) 7,315,000 6,885,000
Community Facilities District 95-1 Lake Elsinore City Center(2015 Series) 1,030,000 560,000
Community Facilities District 2003-2 IA-B Canyon Hills(2015 Series) 25,795,000 14,735,000
Community Facilities District 2004-3-1 IA-1 Rosetta Canyon (2015 Series) 21,005,000 18,265,000
Community Facilities District 2004-3-1 IA-2 Rosetta Canyon (2015 Series) 23,115,000 21,120,000
Community Facilities District 2005-1 Serenity(2015 Series) 8,165,000 6,730,000
Community Facilities District 2005-2 IA-A Alberhill Ranch (2015 Series) 21,095,000 12,110,000
Community Facilities District 2005-2 IA-A Alberhill Ranch (2019 Series A) 7,145,000 6,825,000
Community Facilities District 2005-6 City Center Townhomes (2015 Series) 2,815,000 2,495,000
Community Facilities District 2006-2 Viscaya(2015 Series) 5,825,000 5,215,000
Community Facilities District 2006-1 IA-B Summerly(2015 Series) 3,200,000 3,010,000
Community Facilities District 2006-1 IA-CC(2016 Series A) 3,000,000 2,840,000
Community Facilites District 2006-1 IA-EE Summerly(2017 Series A) 5,070,000 5,020,000
Community Facilities District 2006-1 IA-FF Summerly(2016 Series B) 3,785,000 3,685,000
Community Facilities District 2003-2 IA-B Canyon Hills(2017 Series) 7,975,000 4,600,000
Community Facilities District 2015-5 Trieste(2017 Series) 2,240,000 2,125,000
Community Facilities District 2003-2 IA-E Canyon Hills(2018 Series) 2,655,000 2,575,000
Community Facilities District 2007-5 Red Kite(2018 Series) 1,740,000 1,685,000
Community Facilities District 2016-2 Canyon Hills(2018 Series) 19,745,000 19,600,000
Community Facilities District 2007-4 Makenna Court(2018 Series) 2,645,000 2,620,000
Community Facilities District 2006-1 IA-JJ Summerly(2018 Series) 5,370,000 5,340,000
Community Facilities District 2006-1 IA-HH Summerly(2019 Series) 5,395,000 5,395,000
Community Facilities District 2006-1 IA-II Summerly(2019 Series) 7,790,000 7,790,000
Community Facilities District 2006-1 IA-KK Summerly(Special Tax Bonds 2021 Se 5,265,000 5,265,000
Community Facilities District 2019-1 Westlak(Special Tax Bonds 2021 Series) 6,610,000 6,610,000
Total Community Facilities District Bonds $ 285,860,000 $ 221,854,000
72
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 11: Inter-fund Receivables, Payables and Transfers
During the course of normal operations, the City entered into numerous transactions between
funds, including expenditures and transfers of resources to provide services, construct assets,
and service debt. The accompanying governmental fund financial statements generally reflect
such transactions as operating transfers. Nonrecurring or nonroutine permanent transfers of
equity are reported as residual equity transfers. Inter-fund transactions and inter-fund
payables/receivables at year-end are not eliminated in the governmental fund financial
statements.
Due To/From
Due to and from other funds are as follows:
Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds $ 210,091
The outstanding balances above between funds are to provide cash flows for expenditures.
Transfers In/Out
The compositions of the City's interfund transfer balances are as follows:
Transfers In Transfers Out Amount
General Fund Other Governmental Funds $ 1,008,207
Low and Moderate Income Housing Capital Improvement Plan Fund 2,255,171
Other Governmental Funds General Fund 754,994
Other Governmental Funds Other Governmental Funds 527,147
Other Governmental Funds Capital Improvement Plan Fund 442,119
Capital Improvement Plan Fund Other Governmental Funds 8,113,086
Launch Pointe Fund Capital Improvement Plan Fund 653,165
Internal Service Funds General Fund 1,100,000
Internal Service Funds General Fund 1,500,000
Total $ 16,353,889
The transfers between the General Fund, Low and Moderate Income Housing Fund, Other
Governmental Funds and Capital Improvement Plan Capital Project Fund were made to
provide cash flows for expenditures. The transfers between Other Governmental Funds,
General Fund and Capital Improvement Plan Capital Project Fund were made to fund capital
related projects.The transfers between the Capital Improvement Plan Capital Project Fund and
the Other Government Funds were made to fund construction costs. The transfers between
the Recreation Authority Debt Service Fund and the General Fund were made to provide lease
payments on long-term debt. The internal service funds transfers were made to provide cash
flows for expenditures.
73
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 11: Inter-fund Receivables, Payables and Transfers (Continued)
Advances to, Advances from other funds
The City of Lake Elsinore's Facilities Financing Authority (the "Authority") issued the
Lease Revenue Bonds, Series 2016 A to finance the acquisition, construction and installation
of certain capital improvements for the Launch Pointe Recreation Destination and RV Park.
As of June 30,2020, the campground has became fully operational and a new business-type
Fund, Launch Pointe, was established. The proceeds of the bonds were loaned to the Launch
Pointe in the principal amounts of the bonds. Principal and interest are payable in payments
not less then three business days prior to the due dates of the bonds. The bonds are due in
annual installments of$80,000 to $540,000 from April 1, 2017 through April 1, 2046. Interest
payments ranging from 1.25% to 3.75% are due from April 1, 2017 through
April 1, 2046. The loan balance at June 30, 2021 is $9,340,000.
Note 12: Fund Balance and Net Position
The fund balances reported on the fund statements consist of the following categories:
Non-spendable Fund Balance- Includes amounts that cannot be spent because they are either
not in spendable form, or, for legal or contractual reasons, must be kept intact.
Restricted Fund Balance - Constraints placed on the use of these resources are either
externally imposed by creditors (such as through debt covenants), grantors, contributors or
other governments; or are imposed by law (through constitutional provisions or enabling
legislation).
Committed Fund Balance -Amounts that can only be used for specific purposes because of a
formal action (ordinance) by the government's highest level of decision-making authority. The
City Council is the highest level of decision-making authority for the City that can, by adoption
of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the
limitation imposed by the ordinance remains in place until a similar action is taken to remove
or revise the limitation.
Assigned Fund Balance - Amounts that are constrained by the City's intent to be used for
specific purposes, but that do not meet the criteria to be classified as restricted or committed.
Intent can be stipulated by the governing body, another body, or by an official to whom the
authority has been given. The City Council assigns fund balance, however, unlike
commitments, assignments generally only exist temporarily. In other words, an additional
action does not normally have to be taken for the removal of an assignment.
Unassigned Fund Balance - These are either residual positive net resources of the
General Fund in excess of what can properly be classified in one of the other categories, or
negative balances in all other funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balances are available, the City's policy is to apply restricted fund balance first. When an
expenditure is incurred for purposes for which committed, assigned or unassigned fund
balances are available, the City's policy is to apply committed fund balance first, then assigned
fund balance, and finally unassigned fund balance.
74
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 12: Fund Balance and Net Position (Continued)
The details of the fund balances as of June 30, 2021, are presented below:
Moderate Capital Public
Income Housing Improvement Financing
Cost Recovery Special Revenue Plan Capital Authority Debt
General Fund System Fund Projects Fund Service Fund
Fund balances:
Nonspendable:
Prepaid items $ 31,847 $ - $ - $ $ -
Notes Receivable 1,000,000 - - -
Restricted for:
Debt Service - - - - 113,426,333
Low& Moderate Income Housing - - 51,996,171 - -
Assigned for:
Construction - - - 11,960,552 -
Unassigned 13,715,078 - - - -
Total fund balances $ 14,746,925 $ - $ 51,996,171 $ 11,960,552 $ 113,426,333
Recreation Facilities Non-Major Total
Authority Debt Financing Governmental Governmental
Service Fund Authority Funds Funds
Fund balances:
Nonspendable:
Prepaid items $ 90,839 $ 324,281 $ 46,527 $ 493,494
Notes Receivable - - - 1,000,000
Endowment Principal - - 20,000 20,000
Restricted for:
Debt Service 7 - - 113,426,340
Low& Moderate Income Housing - - 3,588,377 55,584,548
Transportation& Public Works - - 2,323,631 2,323,631
Capital Projects - - 5,693,398 5,693,398
Lighting& Landscape Maintenance - - 971,996 971,996
Public Facilities and Improvements - 63,693,745 6,982,322 70,676,067
Other purposes - - 35,721 35,721
Assigned for:
Construction - - 195,003 12,155,555
Scholarships - - 14,221 14,221
Unassigned - - - 13,715,078
Total fund balances $ 90,846 $ 64,018,026 $ 19,871,196 $ 276,110,049
75
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 12: Fund Balance and Net Position (Continued)
The details of other restricted purposes in the Statement of Net Position as of
June 30, 2021, are presented below:
Geothermal $ 13,908
Education 35,721
Total Net Position - Other Restricted Purposes $ 49,629
Note 13: Pension Plan
a. General Information about the Pension Plans
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 other). 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 sponsors four rate plans (three miscellaneous
and one safety). 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 plans regarding provisions, assumptions and membership information that can
be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual
cost of living adjustments and death benefits to plan members, who must be public
employees and beneficiaries. Benefits are based on years of credited service, equal to one
year of fulltime employment. Members with five years of total service are eligible to retire
at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability
benefits after 10 years of service.The death benefit is one of the following:the Basic Death
Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost
of living adjustments for each plan are applied as specified by the Public Employees'
Retirement Law.
76
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 13: Pension Plan (Continued)
The rate plan provisions and benefits in effect at the measurement date, are summarized
as follows:
City Miscellaneous Plan
Tier 1 * Tier 2* PEPRA
Hire date Prior to Prior to On or after
January 1, 2013 January 1, 2013 January 1, 2013
Benefit formula 2.5% at 55 2.0% at 60 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs
Monthly benefits, as a % of 1.46% -2.418%, 1.092% -2.418%, 1.000% -2.500%,
eligible compensation 50 yrs -55+ yrs, 55 yrs -60+ yrs, 52 yrs -67+ yrs,
respectively respectiely respectively
Required employee 8.000% 7.000% 6.750%
contribution rates
Required normal employer 13.146% 8.794% 7.732%
contribution rates
Required employer payment 781,582 37,395 23,322
of unfunded liability
Safety Plan (1)
Hire date Prior to On or After
January 1, 2013 January 1, 2013
Benefit formula 0.5% @ 55 N/A
Benefit vesting schedule 5 years service N/A
Benefit payments monthly for life N/A
Retirement age minimum 50 yrs N/A
Monthly benefits, as a % of 0.50% N/A
eligible compensation
Required employee N/A N/A
contribution rates
Required employer N/A N/A
contribution rates
(1) Note, the City currently does not have any safety employees. The safety rate plan
represents former safety employees.
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 both 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.
77
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 13: Pension Plan (Continued)
For the year ended June 30, 2021, the employer contributions recognized as a reduction
to the net position liability for all the Plans was $1,762,390.
As of June 30, 2021, the City reported a net pension liability for its proportionate share of
the net pension liability of the Plan of$13,038,918.
b. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources
Related to Pensions
The City net pension liability for the Plan is measured as the proportionate share of the net
pension liability. The net pension liability of each of the Plan is measured as of
June 30, 2020, 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, 2019, rolled forward to
June 30, 2020, 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 plans relative to the projected contributions of all participating employers,
actuarially determined.
The City's proportionate share of the net pension liability for the Plan measured as of
June 30, 2019 and 2020, were as follows:
Increase
June 30,2020 June 30,2019 (Decrease)
0.11984% 0.12082% -0.00098%
For the year ended June 30, 2021, the City recognized pension expense (credit) of
$2,297,717. At June 30, 2021, City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows of
of Resources Resources
Current year contributions that occurred after the
measurement date of June 30, 2020 $ 1,631,890 $ -
Change of Assumption - 92,880
Difference between Expected and Actual
Experiences 672,747 -
Net Difference between Projected and Actual
Earnings on Pension Plan Investments 387,093 -
Adjustment due to differences in proportions
1,044 111,805
Difference in proportionate share 73,070 -
Total $ 2,765,844 $ 204,685
78
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 13: Pension Plan (Continued)
The $1,631,890 reported as deferred outflows of resources 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, 2021. Other amounts reported as deferred outflows of
resources and deferred inflow of resources related to pensions will be recognized as a
reduction of the net pension liability in the subsequent fiscal period as follows:
Year Ending June 30
2022 $ 84,793
2023 367,427
2024 291,374
2025 185,675
2026 -
Thereafter -
Total $ 929,269
For the measurement period ended June 30, 2020, the total pension liability was
determined by rolling forward the June 30, 2019, total pension liability. The June 30, 2019,
and the June 30, 2020, total pension liabilities were based on the following actuarial
methods and assumptions:
Actuarial Cost Method Entry Age Normal in accordance with the
requirements of GASB Statement No. 68.
Actuarial Assumptions
Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 7.00% Net of Pension Plan Investment and
Administrative Expenses; includes Inflation.
Mortality Rate Table (1) Derived using CalPERS' Membership Data for
all Funds.
Post Retirement Benefit Contract COLA up to 2.50% until Purchasing
Increase Power Protection Allowance Floor on
Purchasing Power applies.
(1) The mortality table used was developed based on CalPERS' specific data. The
table includes 15 years of mortality improvements using Society of Actuaries Scale
MP-2016. For more details on this table, please refer to the 2017 experience study
report found on the CalPers Website.
All other actuarial assumptions used in the June 30, 2019, valuation were based on the
results of an actuarial experience study for the period from 1997 to 2015, including updates
to salary increase, mortality and retirement rates. The Experience Study report can be
obtained at CalPERS' website under Forms and Publications.
79
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 13: Pension Plan (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of
cash flows used to determine the discount rate assumed that contributions from plan
members will be made at the current member contribution rates and that contributions from
employers will be made at statutorily required rates,actuarially determined. Based on those
assumptions, the Plan's fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset
class.
In determining the long-term expected rate of return, staff took into account both short-term
and long-term market return expectations as well as the expected pension fund (PERF C)
cash flows. Taking into account historical returns of all the Public Employees Retirement
Funds' asset classes (which includes the agent plan and two cost-sharing plans or
PERF A, B, and C funds), expected compound (geometric) returns were calculated over
the short-term (first 10 years) and the long-term (11+ 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 PERF C fund.The expected rate of return
was set by calculating the 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 followed:
Strategic Real Return Real Return
Asset Class Allocation Years 1-10* Years 11+**
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
*An expected inflation of 2.00% used for this period.
**An expected inflation of 2.92% used for this period.
80
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 13: Pension Plan (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Plan's as of the measurement date,
calculated using the discount rate of 7.15 percent, as well as what the net pension liability
would be if it were calculated using a discount rate that is 1 percentage-point lower
(6.15 percent) or 1 percentage-point higher(8.15 percent)than the current rate:
Discount Rate- 1% Current Discount Discount Rate +1%
6.15% 7.15% 8.15%
Net Pension Liability $ 19,739,348 $ 13,038,918 $ 7,502,598
Net pension liability is liquidated by the General Fund and are reported as a liability of the
governmental activities.
Note 14: Other Post-Employment Benefits
Plan Description
In addition to providing pension benefits, the City provides post-employment benefits through
a single-employer plan for retired employees. In accordance with City Resolution 89-42 dated
September 1989, the City provides health insurance premiums costs to qualifying employees.
Employees who began employment with the City prior to July 1, 2011, and who retire from the
City on or after attaining age 55, with at least 5 years of service with the City, qualify to receive
the post-employment benefit. The City pays 100% of the retirees' and authorized dependents
monthly medical premiums.
Other post-employment benefit obligations are liquidated by the General Fund and are reported
as a liability of the governmental activities.
Employees Covered
As of the June 30, 2019 actuarial valuation, the following current and former employees were
covered by the benefit terms under the Plan:
Active 64
Inactive employees or beneficiaries currently receiving benefits 55
Inactive employees entitled to, but not yet receiving benefits 9
128
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 contribution is based on the actuarially
determined contribution. For the measurement date ended June 30, 2020, the City's cash
contributions were $721,083 in total payments, which were recognized as a reduction to the
OPEB liability.
81
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 14: Other Post-Employment Benefits (Continued)
Total OPEB Liability
The City's Total OPEB liability was measured as of June 30, 2020, and the total OPEB liability
used to calculate the total OPEB liability was determined by an actuarial valuation dated
June 30, 2019, based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 2.45%
Inflation 2.50%
Salary Increases 3.00% per annum, in aggregate
Investment Rate of Return N/A
Mortality Rate Based on assumptions for Public Agency Miscellaneous
members published in the December 2017 CalPERS
Experience Study.
Pre-Retirement Turnover Derived using CalPERS' Membership Data for all funds
Healthcare Trend Rate 6.4% for FY2020, gradually decreasing over several
decades to an ultimate rate of 4.0% in FY2076 and later
years.
Discount Rate
The discount rate used to measure the Total OPEB liability was 2.45 percent. The projection
of cash flows used to determine the discount rate assumed that City contributions will be made
at rates equal to the actuarially determined contribution rates.
Change of Assumptions
The discount rate was changed from 3.13% to 2.45% based on updated 20-year municipal
bond rates.
Changes in the Total OPEB Liability
The changes in the Total OPEB liability for the Plan are as follows:
Increase (Decrease)
Total OPEB Liability
Balance at June 30, 2019 (Measurement Date) $ 22,922,250
Changes recognized for the measurement period:
Service Cost 728,572
Interest 726,138
Differences between expected and actual experience (43,169)
Changes in Assumptions 2,563,159
Benefit payments (903,028)
Net Changes 3,071,672
Balance at June 30, 2020 (Measurement Date) $ 25,993,922
82
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 14: Other Post-Employment Benefits (Continued)
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 one percentage point lower or one percentage point higher than the current rate,
for measurement period ended June 30, 2020:
Current Discount
1%Decrease (1.45%) Rate (2.45%) 1%Increase (3.45%)
Total OPEB Liability $ 30,572,009 $ 25,993,922 $ 22,352,585
Sensitivity of the total OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the Total OPEB liability of the City if it were calculated using health care
cost trend rates that are one percentage point lower or one percentage point higher than the
current rate, for measurement period ended June 30, 2020:
Current Healthcare
1%Decrease Cost Trent Rates 1%Increase
Total OPEB Liability $ 21,774,324 $ 25,993,922 $ 31,438,579
OPEB Expense and Deferred Outflows/inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2021, the City recognized OPEB expense of$1,477,435.
As of fiscal year ended June 30, 2021, the City reported deferred outflows of resources related
to OPEB from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Contributions subequent to the measurement date $ 691,505 $ -
Changes of assumptions 3,173,288 1,069,015
Difference between projected and actual liability - 954,451
Total $ 3,864,793 $ 2,023,466
The $691,505 reported as deferred outflows of resources related to contributions subsequent
to the measurement date will be recognized as a reduction of the Total OPEB liability during
the fiscal year ending June 30,2022. Other amounts reported as deferred outflows of resources
and deferred inflow of resources related to pensions will be recognized as a reduction of the
net pension liability in the subsequent fiscal period as follows:
Year Ending June 30
2022 $ 22,725
2023 22,725
2024 80,083
2025 365,200
2026 385,751
Thereafter 273,338
Total $ 1,149,822
83
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 15: Deferred Compensation
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code 457. On August 20, 1996, the provisions of Internal Revenue Code (IRC)
Section 457 were amended to require new plans to place all assets and income of the plans in
trust for the exclusive benefit of participants and their beneficiaries. Plans in existence as of
the date of this change must place the Plan assets and income in trust by January 1, 1999.
Once the assets and income are placed in trust the City no longer owns the amounts deferred
by employees and related income. Prior to this IRC Section 457 Amendment, the deferred
amounts and related income remained as property of the City until withdrawn by the employee.
During the 1997-98 fiscal year, the City placed its Deferred Compensation Plan assets and
related income in trust as allowed by IRC Section 457 and as a result the asset and
corresponding liability are no longer presented in these financial statements. This change had
no impact on the City's fund equity.
Note 16: Liability, Property and Protection
The City of Lake Elsinore is a member of the CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY (Authority). The Authority is composed of 123 California public entities and is
organized under a joint powers agreement pursuant to California Government Code §6500 et
seq. The purpose of the Authority is to arrange and administer programs for the pooling of
self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group
purchased insurance for property and other lines of coverage. The California JPIA began
covering claims of its members in 1978. Each member government has an elected official as
its representative on the Board of Directors. The Board operates through a nine-member
Executive Committee.
Primary Self-insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A
retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13
and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective
adjustment. The total funding requirement for primary self-insurance programs is based on an
actuarial analysis. Costs are allocated to individual agencies based on payroll and claims
history, relative to other members of the risk-sharing pool.
Primary Liability Program
Claims are pooled separately between police and general government exposures.
(1)The payroll of each member is evaluated relative to the payroll of other members.A variable
credibility factor is determined for each member,which establishes the weight applied to payroll
and the weight applied to losses within the formula. (2)The first layer of losses includes incurred
costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool's total
incurred costs within the first layer. (3)The second layer of losses includes incurred costs from
$100,000 to$500,000 for each occurrence and is evaluated as a percentage of the pool's total
incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are
distributed based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is$50 million per
occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage
structure is composed of a combination of pooled self-insurance, reinsurance, and excess
insurance. Additional information concerning the coverage structure is available on the
Authority's website: https:Hcipia.org/coverage/risk-sharing-pools/.
84
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 16: Liability, Property and Protection (Continued)
Primary Workers' Compensation Program
Claims are pooled separately between public safety (police and fire) and general government
exposures. (1) The payroll of each member is evaluated relative to the payroll of other
members. A variable credibility factor is determined for each member, which establishes the
weight applied to payroll and the weight applied to losses within the formula. (2)The first layer
of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a
percentage of the pool's total incurred costs within the first layer. (3)The second layer of losses
includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a
percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from
$200,000 to statutory limits are distributed based on the outcome of cost allocation within the
first and second loss layers.
For 2020-21 the Authority's pooled retention is $1 million per occurrence, with reinsurance to
statutory limits under California Workers' Compensation Law. Employer's Liability losses are
pooled among members to $1 million. Coverage from $1 million to $5 million is purchased
through reinsurance policies, and Employer's Liability losses from $5 million to $10 million are
pooled among members.
Property Insurance
The City of Lake Elsinore participates in the all-risk property protection program of the Authority.
This insurance protection is underwritten by several insurance companies.
City of Lake Elsinore property is currently insured according to a schedule of covered property
submitted by the City of Lake Elsinore to the Authority. City of Lake Elsinore property currently
has all-risk property insurance protection in the amount of$114,690,344. There is a $10,000
deductible per occurrence except for non-emergency vehicle insurance which has a $2,500
deductible.
Crime Insurance
The City of Lake Elsinore purchases crime insurance coverage in the amount of $1,000,000
with a $2,500 deductible. The fidelity coverage is provided through the Authority.
Pollution Liability Insurance
The City of Lake Elsinore participates in the pollution legal liability insurance program which is
available through the Authority. The policy covers sudden and gradual pollution of scheduled
property, streets, and storm drains owned by the City of Lake Elsinore. Coverage is on a
claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of
$20 million.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were also no
significant reductions in pooled or insured liability coverage in 2020-21.
85
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 17: Litigation
The City is defendant in several other pending lawsuits of a nature common to many similar
jurisdictions. City Management estimates that the potential claims against the City not covered
by insurance resulting from such litigation would not materially affect the basic financial
statements of the City.
Note 18: Successor Agency Trust Disclosures
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill")
that provides for the dissolution of all redevelopment agencies in the State of California. This
action impacted the reporting entity of the City of Lake Elsinore (City) that previously had
reported a redevelopment agency within the reporting entity as a blended component unit. The
Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of
local government will agree to serve as the "successor agency" to hold the assets until they
are distributed to other units of state and local government. On January 24, 2012, the
City Council elected to become the Successor Agency for the former redevelopment agency in
accordance with the Bill. In accordance with the timeline set forth in the Bill (as modified by the
California Supreme Court on December 29, 2011) all redevelopment agencies in the
State of California were dissolved and ceased to operate as a legal entity as of
February 1, 2012.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the
State of California cannot enter into new projects, obligations, or commitments. Subject to the
control of a newly established oversight board, remaining assets can only be used to pay
enforceable obligations in existence at the date of dissolution (including the completion of any
unfinished projects that were subject to legally enforceable contractual commitments). In future
fiscal years, successor agencies will only be allocated revenue in the amount that is necessary
to pay the estimated annual installment payments on enforceable obligations of the former
redevelopment agency until all enforceable obligations of the prior redevelopment agency have
been paid in full and all assets have been liquidated.
86
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust Disclosures (Continued)
Successor Agency Capital Assets
Capital assets activity was as follows:
Beginning
Balance Additions Deletions Ending Balance
Capital assets,not being depreciated:
Land $ 2,004,419 $ $ $ 2,004,419
Total Capital Assets,
Not Being Depreciated 2,004,419 2,004,419
Capital assets,being depreciated:
Building and Structures 26,471,558 117,140 26,588,698
Improvement other than buildings 531,302 - 531,302
Machinery and Equipment 348,895 18,375 367,270
Furniture and Fixtures 667,858 1,461 669,319
Total Capital Assets,
Being Depreciated 28,019,613 136,976 28,156,589
Less accumulated depreciation:
Building and Structures (10,839,431) (1,624,330) (12,463,761)
Improvement other than buildings (440,622) (34,390) (475,012)
Machinery and Equipment (115,198) (38,387) (153,585)
Furniture and Fixtures (11,561) (70,739) (82,300)
Total Accumulated
Depreciation (11,406,812) (1,767,846) (13,174,658)
Total Capital Assets,
Being Depreciated,Net 16,612,801 (1,630,870) 14,981,931
Capital Assets,Net $ 18,617,220 $ (1,630,870) $ $ 16,986,350
Successor Agency Long—Term Liabilities
Amount
Date of Issue Years of Maturity Rate of Interest Authorized
Loans payable
City of Lake Elsinore Various Various Various Various
Facility Financing Authority Various Various Various $ 12,875,000
Subordinate Tax
Allocation Revenue Bonds:
2015 Series 8/15 2017-2039 2.00-5.00% 8,065,000
2019 Series A 6/19 2020-2033 5.00% 9,260,000
2019 Series B 10/19 2021 -2025 1.99% 4,050,000
Third Lien Tax Allocation Bonds
2018A&B 02/18 2019-2038 Various 10,320,000
2020B&C 12/20 2022-2038 3.00-4.00% 9,390,000
Developer Agreements:
McMillin Sumrnerly, LLC 12/02 N/A N/A 19,000,000
87
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust Disclosures (Continued)
Long term activity was as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Loans Payable(Direct borrowings) :
City of Lake Elsinore(Note 4) $ 27,012,366 $ 458,750 $ (3,765,764) $23,705,352 $ -
Lake Elsinore Facilities Financing Authority 12,875,000 - - 12,875,000 -
Subtotal 39,887,366 458,750 (3,765,764) 36,580,352 -
Subordinate Tax Allocation Bonds
2015 Series 5,105,000 - (790,000) 4,315,000 805,000
2019 Series A 9,260,000 (170,000) 9,090,000 270,000
2019 Series B 4,050,000 (650,000) 3,400,000 655,000
Premiums 1,455,155 (107,200) 1,347,955 -
Subtotal 19,870,155 (1,717,200) 18,152,955 1,730,000
Third Lien Tax Allocation Bonds
2018 Series A&B 9,375,000 - (520,000) 8,855,000 530,000
2020 Series B&C - 9,390,000 (665,000) 8,725,000 360,000
Discount (162,378) - 8,777 (153,601) -
Premium - 928,237 (53,042) 875,195 -
Subtotal 9,212,622 10,318,237 (1,229,265) 18,301,594 890,000
Developer Agreements(Direct borrowings):
McMillin Surnmerly, LLC 1,713,381 - (1,713,381) - -
Subtotal 1,713,381 - (1,713,381) -
Total $ 70,683,524 $10,776,987 $ (8,425,610) $73,034,901 $ 2,620,000
M Additions to loans payable to the City of Lake Elsinore reflect accrued interest on the
loans during the fiscal year.
a. Loans Payable
Facilities Financing Authority
The City of Lake Elsinore Facilities Financing Authority (the "Authority") issued
Tax Allocation Revenue Refunding Bonds to make two separate loans to the Successor
Agency of the Redevelopment Agency of the City of Lake Elsinore ("the Successor
Agency") for the purpose of refinancing certain obligations of the former Redevelopment
Agency of the City of Lake Elsinore (the"Former Agency"). The Former Agency previously
entered into Project Area I and Project Area II loan agreements with the Lake Elsinore
Public Financing Authority (the "Public Financing Authority"). The Successor Agency
assumed responsibility of all debt management with respect to the Former Agency and the
Successor may refinance outstanding bonds with approval from the County Oversight
Board and the California Department of Finance (DOF), provided that the total interest
costs, principal amount, and final maturity on the refunding bonds do not exceed that of
the prior bonds. Both the County Oversight Board and the DOF approved the refinancing.
The proceeds of the bonds were loaned to the Successor Agency pursuant to the loan
agreements with the Authority in the principal amount of the bonds.The Successor Agency
property tax increment is pledged for payment of the debt issued.
88
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust Disclosures (Continued)
At June 30, 2021, outstanding principal under loan agreements between the
Successor Agency and the Authority totaled $12,875,000 based on 2020 Series A,
Tax Allocation Revenue Refunding Bonds.
2020 Series A
In June 2021, $12,875,000 principal amount of Tax Allocation Revenue Refunding Bonds,
Series 2020A,was issued by the Authority.The proceeds were used to make two separate
loans to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore
for the purpose of refinancing certain obligations, to purchase debt service reserve
insurance policies for the Bonds, and to pay certain costs of issuance. The loan is payable
in annual installments of $1,270,000 to $2,130,000 from September 1, 2024, through
September 1, 2030; and bears interest at 4.00%.
In the event of a default, the Trustee may pursue any available remedy at law or in equity
to enforce the payment of the principal of and interest and premium (if any) on the Bonds,
and to enforce any rights of the Trustee under or with respect to the Indenture.
Future debt requirements for the loans payable to the Public Financing Authority are as
follows:
Year Ending June 30 Principal Interest Total
2022 $ - $ 515,000 $ 515,000
2023 - 515,000 515,000
2024 - 515,000 515,000
2025 1,270,000 489,600 1,759,600
2026 1,750,000 429,200 2,179,200
2027- 2031 9,855,000 1,016,300 10,871,300
Totals $ 12,875,000 $ 3,480,100 $ 16,355,100
b. Subordinate Tax Allocation Revenue Bonds
2015 Series
In August 2015, $8,065,000 principal amount of Subordinate Tax Allocation Refunding
Bonds, Series 2015 were issued to advance refund the 2011 Launch Ramp Project and
2011 Summerly Project Lake Elsinore Public Financing Authority bonds. The term bonds
are due in annual installments of $35,000 to $805,000 from September 1, 2016 through
September 1,2038; interest at 1.625%to 5%.The bonds are subject to call and redemption
prior to their stated maturity at specified redemption prices. The balance at June 30, 2021,
is $4,315,000.
In the event of a default, the Trustee may pursue any available remedy at law or in equity
to enforce the payment of the principal of and interest and premium (if any) on the Bonds,
and to enforce any rights of the Trustee under or with respect to the Indenture.
89
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust Disclosures (Continued)
Year Ending June 30 Principal Interest Total
2022 $ 805,000 $ 145,656 $ 950,656
2023 220,000 125,156 345,156
2024 225,000 116,256 341,256
2025 240,000 106,956 346,956
2026 250,000 97,156 347,156
2027 -2031 1,410,000 326,013 1,736,013
2032 - 2036 1,035,000 85,434 1,120,434
2037 - 2041 130,000 7,250 137,250
Totals $ 4,315,000 $ 1,009,877 $ 5,324,877
2019 Series A
In June 2019, $9,260,000 principal amount of Subordinated Tax Allocation Refunding
Bonds, Series 2019A was issued by the Successor Agency of the Redevelopment Agency.
The principal and interest on the bonds are payable solely from the Pledged Tax Revenues
allocated to the Agency from the Project Areas and other funds. The bonds were issued
to refund certain Refunded Obligations. The bonds are payable in annual installments of
$170,000 to $1,505,000 from September 1, 2020 through September 1, 2033; interest at
5%. The balance at June 30, 2021, is $9,090,000.
In the event of a default, the Trustee may pursue any available remedy at law or in equity
to enforce the payment of the principal of and interest and premium (if any) on the Bonds,
and to enforce any rights of the Trustee under or with respect to the Indenture. Future debt
requirements for the Subordinated Tax Allocation Refunding Bonds, Series 2019A, are as
follows:
Year Ending June 30 Principal Interest Total
2022 $ 270,000 $ 447,750 $ 717,750
2023 285,000 433,875 718,875
2024 300,000 419,250 719,250
2025 315,000 403,875 718,875
2026 330,000 387,750 717,750
2027 - 2031 1,900,000 1,669,250 3,569,250
2032 - 2036 5,690,000 367,500 6,057,500
Totals $ 9,090,000 $ 4,129,250 $ 13,219,250
90
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust Disclosures (Continued)
2019 Series B
In October 2019, $4,050,000 principal amount of Subordinated Tax Allocation Refunding
Bonds, Series 2019B was issued by the Successor Agency of the Redevelopment Agency.
The principal and interest on the bonds are payable solely from the Pledged Tax Revenues
allocated to the Agency from the Project Areas and other funds. The bonds were issued
to refund certain Refunded Obligations. The bonds are payable in annual installments of
$650,000 to $705,000 from September 1, 2020 through September 1, 2025; interest at
1.99%. The balance at June 30, 2021, is$3,400,000.
In the event of default, the Trustee will be entitled to sue to enforce payment and receive
any and all amounts from any monies available for such purpose in any manner provided
by law. Future debt requirements for the Subordinated Tax Allocation Refunding Bonds,
Series 2019B, are as follows:
Year Ending June 30 Principal Interest Total
2022 $ 655,000 $ 61,143 $ 716,143
2023 665,000 48,009 713,009
2024 680,000 34,626 714,626
2025 695,000 20,945 715,945
2026 705,000 7,015 712,015
Totals $ 3,400,000 $ 171,738 $ 3,571,738
c. Third Lien Tax Allocation Bonds
2018 Series A
In February 2018, $2,350,000 principal amount of Tax Allocation Bonds, Series A, was
issued by the Successor Agency of the Redevelopment Agency. The principal and interest
on the bonds are payable solely from the Pledged Tax Revenue allocated to the Agency
from the Project Areas and other funds. The bonds were issued to finance certain
obligations of the Agency under the Summerly DDA the bonds are payable in annual
installments of$80,000 to $380,000 from March 1, 2019 through March 1, 2038; interest
at 2.000% to 3.375%. The balance at June 30, 2021, is $2,070,000.
In the event of default, the Trustee will be entitled to sue to enforce payment and receive
any and all amounts from any monies available for such purpose in any manner provided
by law. Future debt requirements for the Subordinated Tax Allocation Refunding Bonds,
Series 2018 A, are as follows:
91
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust Disclosures (Continued)
Year Ending June 30 Principal Interest Total
2022 $ 95,000 $ 58,925 $ 153,925
2023 100,000 57,025 157,025
2024 105,000 55,025 160,025
2025 100,000 52,794 152,794
2026 105,000 50,544 155,544
2027 -2031 555,000 212,638 767,638
2032 -2036 840,000 115,481 955,481
2037 -2038 170,000 8,606 178,606
Totals $ 2,070,000 $ 611,037 $ 2,681,037
2018 Series B
In February 2018, $7,970,000 principal amount of Tax Allocation Bonds, Series B, was
issued by the Successor Agency of the Redevelopment Agency. The principal and interest
on the bonds are payable solely from the Pledged Tax Revenue allocated to the Agency
from the Project Areas and other funds. The bonds were issued to finance certain
obligations of the Agency under the Summerly DDA. The bonds are payable in annual
installments of$205,000 to $545,000 from March 1, 2019 through March 1, 2038; interest
at 2.250% to 4.000%. The balance at June 30, 2021, is$6,785,000.
In the event of default, the Trustee will be entitled to sue to enforce payment and receive
any and all amounts from any monies available for such purpose in any manner provided
by law. Future debt requirements for the Subordinated Tax Allocation Refunding Bonds,
Series 2018 B, are as follows:
Year Ending June 30 Principal Interest Total
2022 $ 435,000 $ 250,088 $ 685,088
2023 355,000 237,581 592,581
2024 365,000 226,931 591,931
2025 375,000 215,069 590,069
2026 390,000 202,881 592,881
2027 -2031 2,170,000 791,150 2,961,150
2032 -2036 2,265,000 336,394 2,601,394
2037 -2038 430,000 26,000 456,000
Totals $ 6,785,000 $ 2,286,094 $ 9,071,094
2020 Series B
In December 2020, $4,835,000 principal amount of Tax Allocation Bonds, Series B, was
issued by the Successor Agency of the Redevelopment Agency. The principal and interest
on the bonds are payable solely from the Pledged Tax Revenue allocated to the Agency
from the Project Areas and other funds. The bonds were issued to finance certain
obligations of the Agency under the Summerly DDA. The bonds are payable in annual
installments of$100,000 to $705,000 from March 1, 2022 through March 1, 2038; interest
at 3.000% to 4.000%. The balance at June 30, 2021, is$4,835,000.
92
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust Disclosures (Continued)
In the event of default, the Trustee will be entitled to sue to enforce payment and receive
any and all amounts from any monies available for such purpose in any manner provided
by law. Future debt requirements for the Subordinated Tax Allocation Refunding Bonds,
Series 2020 B, are as follows:
Year Ending June 30 Principal Interest Total
2022 $ 100,000 $ 191,250 $ 291,250
2023 115,000 188,250 303,250
2024 120,000 184,800 304,800
2025 125,000 180,000 305,000
2026 130,000 175,000 305,000
2027 -2031 870,000 793,000 1,663,000
2032 -2036 2,880,000 415,400 3,295,400
2037 -2038 495,000 29,800 524,800
Totals $ 4,835,000 $ 2,157,500 $ 6,992,500
2020 Series C
In December 2020, $4,555,000 principal amount of Tax Allocation Bonds, Series C, was
issued by the Successor Agency of the Redevelopment Agency. The principal and interest
on the bonds are payable solely from the Pledged Tax Revenue allocated to the Agency
from the Project Areas and other funds. The bonds were issued to finance certain
obligations of the Agency under the Summerly DDA. The bonds are payable in annual
installments of$260,000 to $310,000 from March 1, 2021 through March 1, 2031; interest
at 0.0473% to 2.473%. The balance at June 30, 2021, is$3,890,000.
In the event of default, the Trustee will be entitled to sue to enforce payment and receive
any and all amounts from any monies available for such purpose in any manner provided
by law. Future debt requirements for the Subordinated Tax Allocation Refunding Bonds,
Series 2020 C, are as follows:
Year Ending June 30 Principal Interest Total
2022 $ 260,000 $ 63,204 $ 323,204
2023 395,000 61,584 456,584
2024 400,000 58,305 458,305
2025 405,000 54,205 459,205
2026 410,000 49,447 459,447
2027-2031 2,020,000 131,706 2,151,706
Totals $ 3,890,000 $ 418,451 $ 4,308,451
d. Developer Agreements
The former Redevelopment Agency of the City of Lake Elsinore ("Agency") entered into
several developer agreements for development within the City (project areas). The
Agency's significant commitments with certain developers consist of the following:
93
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust Disclosures (Continued)
McMillin Summerly LLC
On or about December 26, 2002, the Agency entered into a Disposition and Development
Agreement (as amended to date, the "DDA") with Laing CP Lake Elsinore LLC and
Civic Partners Elsinore LLC, as developer and master developer, respectively. Under the
DDA, the Agency pledged to the developer and the master developer 100% of the net tax
increment generated within the East Lake Specific Plan (ELSP) comprised of
approximately 3,000 acres located in Project Areas II and III excluding, without limitation,
a portion of the moneys to be set aside in the former low and moderate-income housing
fund and funds payable under pass through agreements. As a result of the bankruptcy of
the managing member of Laing CP Lake Elsinore LLC, Bank of America foreclosed on and
later sold the developer's property to McMillin Summerly LLC, who assumed the
developer's rights and obligations under the DDA pursuant to an Amended and
Restated DDA entered into as of March 8, 2011.
On November 19, 2015, the Department of Finance issued its final and conclusive
determination that the irrevocable pledge of property tax increment to the developer and
the master developer made by the DDA is recognized as an enforceable obligation of the
Successor Agency. A portion of the tax increment pledged to the master developer is
pledged for use in the development of affordable housing provided that certain
requirements are met. A portion of the tax increment pledged to the developer is pledged
to reimburse the developer for construction of certain extraordinary infrastructure in the
ELSP. Developer's reimbursement for construction of extraordinary infrastructure is limited
to $19,000,000, as adjusted in accordance with the terms of the DDA.
The DDA requires that the Successor Agency issue bonds, if requested,to pay the portions
of the tax revenues owing to the developer and/or master developer. In April 2011, the
Agency issued two subordinate tax allocation bonds 2011 Series totaling an original
principal amount of $4,610,000, the proceeds of which were used to reimburse the
developer for construction of certain extraordinary infrastructure under the DDA. In
August 2015, the Successor Agency issued its Series 2015 bonds in the original principal
amount of $8,065,00 to advance refund the 2011 Series. In February 2018, the
Successor Agency issued its Third Lien Tax Allocation Bonds 2018 Series A and B to
finance a portion of the DDA obligations.
Property tax increment accrued by the Successor Agency for payment in accordance with
the DDA as of June 30, 2021, is $0. In addition, property tax increment accrued as of
June 30, 2021 for assistance to an affordable housing project to be developed by the
master developer is $0.
e. Commitments and Contingencies
The Successor Agency has succeeded to the rights and obligations of the former
Redevelopment Agency. The following represents the Successor Agency's significant
commitments.
94
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust Disclosures (Continued)
Lake Elsinore Stadium
The Successor Agency has succeeded to the Agency as the owner of Diamond Stadium.
Diamond Stadium will require significant capital maintenance in future years. In addition,
the Successor Agency will incur costs to operate and regularly maintain the Stadium. The
cost of ongoing operation maintenance of the Stadium will vary based on how long the
Successor Agency owns the Stadium, how much costs to operate and maintain the
Stadium vary over time, and what kind of capital outlay is required over time to maintain
the Stadium in its current condition. Capital expenses could be substantial and cannot be
estimated at this time.
The Successor Agency and the Lake Elsinore Storm entered into a Stadium Interim
Management Agreement dated January 1, 2013 to provide for the performance by
Lake Elsinore Storm of certain maintenance, upkeep, and operations of Diamond Stadium.
The Management Agreement provides that the Successor Agency pay an aggregate
management and maintenance fee to the Lake Elsinore Storm in the amount of$725,411
for the 2020 fiscal year and $743,544 for the 2021 fiscal year. This amount is net of
payments owed to the Successor Agency pursuant to a License Agreement, as amended,
and includes payments by the Successor Agency due pursuant to a Stadium Field and
Maintenance Agreement, as amended, and assignment of revenues pursuant to a
Concession License Agreement, as amended. The Management Agreement was
amended and expires on September 30, 2022.
Other Matters
Management believes, in consultation with legal counsel, that the obligations of the former
redevelopment agency due to the City are valid enforceable obligations payable by the
successor agency trust under the requirements of the Bill. The City's position on this issue
is not a position of settled law and there is considerable legal uncertainty regarding this
issue. It is reasonably possible that a legal determination may be made at a later date by
an appropriate judicial authority that would resolve unfavorable to the City.
Pledged Revenue
The City pledged, as security for bonds issued, either directly or through the
Financing Authority, a portion of tax increment revenue (including Low- and Moderate-
Income Housing set-aside and pass-through allocations)that it receives.The bonds issued
were to provide financing for various capital projects, accomplish Low- and
Moderate-Income Housing projects and to defease previously issued bonds. Assembly Bill
1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes
allocated to redevelopment agencies no longer are deemed tax increment but rather
property tax revenues and will be allocated first to successor agencies to make payments
on the indebtedness incurred by the dissolved redevelopment agency. For the current year,
the total property tax revenue recognized by the Successor Agency for the payment of
indebtedness incurred by the dissolved redevelopment agency was $15,054,596 and the
required debt service obligation on the bonds was $8,425,610.
95
CITY OF LAKE ELSINORE
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2021
Note 19: Joint Powers Agreements
On March 28, 2000, the City agreed to enter into a joint powers agreement under
Proposition 13 with Elsinore Valley Municipal Water District and the Santa Ana Watersheds
Project Authority to form the Lake Elsinore and San Jacinto Watersheds Authority. The
Authority is due to receive $15 million in Proposition 13 water bond proceeds to improve the
Lake Elsinore and San Jacinto Watersheds Authority lake water quality. As of June 30, 2015,
the Authority had minimal activity and according to the criteria in Note 1A, the Authority is not
included in these financial statements.
In November 2010, the City agreed to enter into a joint powers agreement with the
County of Riverside, City of Canyon Lake, City of Murrieta, City of Temecula and
City of Wildomar to form the Southwest Communities Financing Authority (the Authority) to
provide animal shelter services. The City contributes a prorated share of the Authority's debt
service payments, costs of administrative services and operation of animal shelter. The City
does not have measurable equity interest in the Authority. According to criteria in Note 1A, the
Authority is not included in these financial statements.
In January 2004, the City entered into a joint powers agreement with the County of Riverside,
the Cities of Banning, Beaumont, Calimesa, Canyon Lake, Corona, Hemet, Moreno Valley,
Murrieta, Norco, Perris, Riverside, San Jacinto and Temecula to form the Western Riverside
County Regional Conservation Authority (the Conservation Authority). The purposes of the
Conservation Authority are to acquire, administer, operate and maintain land and facilities for
ecosystem conservation and habitat reserve for certain endangered species. The City's
contributions to the Conservation Authority consist of a development mitigation fee imposed on
all new development. The City does not have measurable equity interest in the
Conservation Authority. According to criteria in Note 1A, the Conservation Authority is not
included in these financial statements.
Note 20: Restatement-GASB Statement No. 84, Fiduciary Activities
During the year ended June 30, 2021, the City adopted new accounting guidance by
implementing the provisions of GASB Statement No.84, Fiduciary Activities,which establishes
criteria for identifying and reporting fiduciary activities. The implementation of this statement
has resulted in changing the presentation of the financial statements by presenting funds
formula identified under the agency fund description to be presented under the City's
governmental activities. Beginning net position has been restated to reflect this change. A
restatement in the governmental activities and Custodial Funds of $2,696,968 and
$265,686,939, respectively, were required to implement the new standard.
Note 21: Subsequent Events
On August 5, 2021, $10,405,000 principal amount of 2021 Local Agency Revenue Refunding
Bonds, Series B, was issued by the Lake Elsinore Facilities Financing Authority in accordance
with the indenture. The bonds were issued to refund four outstanding series of bonds issued
by said community facilities districts, which with respect to series of such bonds, were issued
in connection with the issuance by the Lake Elsinore Public Facilities Financing Authority of a
series of its local agency revenue bonds. Bonds are due in annual installments of$105,000 to
$600,000 from March 1, 2022 to September 1, 2047. Interest payments at 4.0% are due from
September 1, 2022 to September 1, 2047.
96
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CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 12,058,871 $ 12,058,871 $ 12,058,871 $ -
Resources(Inflows):
Taxes 22,557,050 24,819,640 27,591,090 2,771,450
Licenses and permits 2,588,780 2,663,596 2,466,569 (197,027)
Intergovernmental 5,995,720 5,896,430 4,645,676 (1,250,754)
Charges for services 3,043,900 3,526,325 3,395,047 (131,278)
Use of money and property 218,370 49,123 63,426 14,303
Fines and forfeitures 569,010 288,454 250,930 (37,524)
Contributions 618,000 442,295 172,486 (269,809)
Miscellaneous 8,774,310 8,170,261 8,288,753 118,492
Transfers in - 268,363 1,008,207 739,844
Proceeds from sale of capital asset - 8,263 8,262 (1)
Amounts Available for Appropriations 56,424,011 58,191,621 59,949,317 1,757,696
Charges to Appropriation (Outflow):
General government
City Council 221,350 221,350 205,646 15,704
Community Support 134,330 183,080 115,002 68,078
City Clerk 668,340 668,340 557,261 111,079
City Attorney 509,940 509,940 622,112 (112,172)
City Manager 952,320 1,054,450 1,123,908 (69,458)
Administrative Services 2,012,320 2,012,320 1,965,930 46,390
Public safety
Police Services-Contracted 14,538,480 14,538,480 14,006,496 531,984
Suppression-Contracted 7,711,430 7,711,430 7,050,641 660,789
Animal Services-Contracted 754,550 754,550 761,875 (7,325)
Community development
Planning&Zoning 1,490,520 1,551,440 1,042,751 508,689
Building&Safety 1,687,490 1,687,490 1,559,191 128,299
Code Enforcement/Graffiti 1,329,780 1,329,780 1,335,384 (5,604)
Economic Development 264,680 264,680 244,263 20,417
Fire Prevention 700,680 700,678 411,130 289,548
Community services
Administration 979,610 979,610 773,057 206,553
Recreation 1,087,990 1,087,990 610,845 477,145
Senior Center 539,750 539,750 391,964 147,786
Neighborhood Center 465,480 314,750 229,274 85,476
Public services
Engineering 2,467,150 2,627,982 1,978,012 649,970
Administration 3,039,920 3,039,920 2,811,503 228,417
Park Maintenance 2,916,320 2,916,320 2,637,033 279,287
Lake Services 1,263,330 1,263,330 1,133,391 129,939
Non-Departmental 199,640 392,720 280,729 111,991
Debt service:
Principal retirement 675,000 675,000 - 675,000
Interest and fiscal charges 454,400 454,400 - 454,400
Transfers out 643,690 643,690 3,354,994 (2,711,304)
Total Charges to Appropriations 47,708,490 48,123,470 45,202,392 2,921,078
Budgetary Fund Balance,June 30 $ 8,715,521 $ 10,068,151 $14,746,925 $ 4,678,774
See Notes to Required Supplementary Information. 99
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
LOW AND MODERATE INCOME HOUSING
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $45,097,745 $45,097,745 $45,097,745 $ -
Resources(Inflows):
Assessments 45,000 45,000 5,566,378 5,521,378
Use of money and property 75,000 75,000 104,030 29,030
Miscellaneous - - 2,400 2,400
Transfers in - - 2,255,171 2,255,171
Amounts Available for Appropriations 45,217,745 45,217,745 53,025,724 7,807,979
Charges to Appropriation (Outflow):
Community development 505,000 505,000 1,029,553 (524,553)
Total Charges to Appropriations 505,000 505,000 1,029,553 (524,553)
Budgetary Fund Balance,June 30 $44,712,745 $44,712,745 $51,996,171 $ 7,283,426
See Notes to Required Supplementary Information. 100
CITY OF LAKE ELSINORE
CALIPERS PENSION PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017 2018 2019 2020 2021
Proportion of the Net Pension Liability 0.29477% 0.32568% 0.31058% 0.30896% 0.30977% 0.30889% 0.30885%
Proportionate Share of the Net Pension Liability $ 7,292,642 $ 8,943,640 $ 10,798,127 $ 12,189,277 $ 11,684,999 $ 12,380,535 $ 13,038,918
Covered Payroll $ 4,537,860 $ 4,751,199 $ 3,804,985 $ 5,605,231 $ 5,975,932 $ 6,052,501 $ 6,349,041
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 160.71% 188.24% 283.79% 217.46% 195.53% 204.55% 205.37%
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 78.40% 79.82% 75.87% 73.31% 75.26% 75.26% 75.10%
Notes to Schedule:
Benefit Changes:There were no changes to benefit terms that applied to all members of the Public Agency Pool.However,individual employers in the Plan may have provided a benefit
improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified period(also known as"Golden Handshakes').Employers that
have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific
liabilities.These employers should consult with their auditors.
Changes of Assumptions: In 2021, 2020 and 2019, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS
Experience Study and Review of Actuarial Assumptions December 2017.There were no changes in the discount rate in 2018. In 2017,the accounting discount rate reduced from
7.65 percent to 7.15 percent.In 2016,there were no changes.In 2015,amounts reported reflect an adjustment of the discount rate from 7.5 percent(net of administrative expense)to
7.65 percent(without a reduction for pension plan administrative expense.)In 2014,amount reported were based on the 7.5 percent discount rate.
(1)Historical information is required only for measurement for which GASB 68 is applicable.Fiscal Year 2015 was the first year of implementation,therefore only seven years are shown.
See Notes to Required Supplementary Information. 101
CITY OF LAKE ELSINORE
CALIPERS PENSION PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017 2018 2019 2020 2021
Actuarially Determined Contribution $ 890,999 $ 1,049,049 $ 1,313,558 $ 1,397,703 $ 1,340,596 $ 1,529,732 $ 1,631,890
Contribution in Relation to the Actuarially Determined Contribution (890,999) (1,049,049) (1,313,558) (1,397,703) (1,585,939) (1,762,389) (1,631,890)
Contribution Deficiency(Excess) $ $ - $ - $ $ (245,343) $ (232,657) $ -
Covered Payroll $ 4,751,199 $ 3,804,985 $ 5,605,231 $ 5,975,932 $ 6,052,501 $ 6,349,041 $ 6,551,595
Contributions as a Percentage of Covered Payroll 18.75% 27.57% 23.43% 23.39% 26.20% 27.76% 24.91
(1)Historical information is required only for measurement years for which GASB 68 is applicable.Fiscal Year 2015 was the first year of implementation,therefore only six years are shown.
Note to Schedule:
Valuation Date: June 30,2018
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of pay,a summary of the current policy is provided in the table below:
Source
stmenGain/Loss Assumptiona Benefit Chan a
/ Golden
Driver Invet Non-investment Method Chan Handshake
Amortization Period 30 years 30 Years 20 Years 20 Years 5 Years
Escalation Rate
Active Plans 2.875% 2.875% 2.875% 2.875% 2.875
-Inactive Plans 0% 0% 0% 0% 0
Ramp Up 5 5 5 0 0
Ram Down 5 5 5 0 0
Inflation 2.50
Payroll Growth 2.875%
Projected Salary Increases Varies by Entry Age and Service
Investment Rate of Return 7.15%(net of pension plan investment and administrative expenses,includes inflation)
Retirement Age Retirement rates vary by age,service,and formula
Mortality The mortality table used was developed based on CalPERS'specific data.The table includes 20 years of mortality improvements
using Society of Actuaries Scale BB.For more details on this table,please refer to the 2014 experience study report.
See Notes to Required Supplementary Information. 102
CITY OF LAKE ELSINORE
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2018 2019 2020 2021
Total OPEB Liability
Service cost $ 841,236 $ 747,127 $ 764,792 $ 728,572
Interest on the total OPEB liability 700,306 788,486 814,609 726,138
Actual and expected experience difference - - (1,305,728) (43,169)
Changes in assumptions (2,304,484) (203,573) 1,410,007 2,563,159
Benefit payments(2) (964,068) (991,074) (999,280) (903,028)
Net change in total OPEB liability (1,727,010) 340,966 684,400 3,071,672
Total OPEB liability-beginning 23,623,894 21,896,884 22,237,850 22,922,250
Total OPEB liability-ending $ 21,896,884 $ 22,237,850 $ 22,922,250 $ 25,993,922
Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00%
Covered payroll $ 4,726,797 $ 4,962,874 $ 5,058,783 $ 7,043,350
Total OPEB liability as a percentage of covered payroll 441.21% 470.46% 461.87% 513.84%
(1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future
years'information will be displayed up to 10 years as information becomes available.
(2) Benefit payments are equal to $669,634 direct subsidy payments to retirees and $233,394 implicit subsidy costs incurred during measurement period ending
June 30,2020.
Notes to Schedule:Assets are not accumulated in a qualifying trust,therefore Fiduciary Net Position is$0.
Changes in assumptions: The discount rate was changed from 3.13%to 2.45%based on updated 20-year municipal bond rates.
See Notes to Required Supplementary Information. 103
CITY OF LAKE ELSINORE
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)
YEAR ENDED JUNE 30, 2021
BUDGETS AND BUDGETARY DATA
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. In May, the City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing July 1. The operating budget includes proposed expenditures and estimated
revenues and other means of financing.
2. Public hearings are conducted at City Council meetings to obtain public input.
3. Prior to July 1, the budget is adopted by Council action.
4. The City Manager is authorized to transfer funds appropriated with respect to those classifications
designed as other services and material and supplies within the same department. The
City Manager may transfer appropriated funds from any classification within other expenditure
categories to the capital outlay classification within the same department only. For budgeting
purposes, the General Fund is composed of several departments while all other budgeted funds
are considered a single department. Revenues are budgeted on a line item basis.
5. The legal level of budgetary control is maintained at the departmental level. Formal budgetary
integration is employed as a management control devise during the year for the General and
Special Revenue Fund types to assist in controlling expenditures and enforcing revenue provisions.
Capital Projects Fund types are budgeted on a project by project basis. All appropriations lapse at
the end of the fiscal year, except for capital projects which are carried forward until the project is
completed or terminated.
6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted
in the United States of America. Budgeted amounts are as originally adopted and as further
amended by the City Council for all governmental funds except for certain special revenue funds
and capital projects funds, which adopt project length budgets and debt service funds that are not
budgeted as effective budgetary control is achieved through debt indenture provisions. Budgets
were legally adopted for all governmental funds. The Cost Recovery, La Strada RBBD, Anchor,
and Measure Z Fund did not adopt budgets. Therefore, no budgetary comparison schedule is
presented as supplementary information.
104
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CITY OF LAKE ELSINORE
Non-Major Governmental Funds
Special Revenue Funds
Supplemental Law Enforcement Service - to account for receipts and expenditures of money related to
the citizens option for public safety grant.
Traffic Offender - to account for administrative fees generated from charges to drivers who have been
arrested for DUI, who are driving on suspended/revoked licenses, or have never been issued a driver's
license. These funds may only be used to further the traffic safety goals of the City of Lake Elsinore and
are subject to OTS audit.
Gas Tax - to account for receipts and expenditures of money apportioned under the Street and Highway
Code of the State of California.
Transportation Measure A- to account for revenues derived from half-cent sales tax and for expenditures
to improve the City's transportation system in response to traffic congestion.
SB1186 CAS Education - to account for required state fees imposed on business licenses for the
development of educational resources on federal and state disability laws for businesses.
Traffic Safety-to account for expenditures financed by revenue generated from enforcement of California
vehicle codes and City ordinances. These restricted funds may be used only for traffic signals, school
crossing guards, and other related traffic safety expenditures.
City-wide Lighting and Landscaping - to account for revenues derived from annual assessments which
are used to pay the costs incurred by the City for landscape maintenance and streetlight maintenance.
Lighting and Landscape Maintenance District (L.L.M.D No. 1) - to account for revenues derived from
annual assessments which are used to pay the costs incurred by the City for landscape maintenance and
street light maintenance within the District.
Geothermal - to account for cash bond held by the City, as required by the State, for the City owned
geothermal well. Interest earned is available for City use.
AB2766 Air Pollution - to account for South Coast Air Quality Board receipts, representing revenues
collected by the Department of Motor Vehicles. The City is committed to spend revenues to reduce air
pollution from mobile sources.
Community Development Block Grant (C.D.B.G.) - to account for grant monies received from a federal
pass-through agency not accounted for in the other funds.
Developer Agreement Revenue/Trust-to account for development fees based on developer agreements.
Affordable Housing in Lieu -to account for collection of fees assessed to developers and for expenditures
made on affordable housing projects.
City Hall/Public Works - to account for collection of fees assessed to developers and for expenditures
made on City Hall and Public Works facilities projects.
Community Center- to account for collection of fees assessed to developers and for expenditures made
on Community Center facilities projects.
107
CITY OF LAKE ELSINORE
Non-Major Governmental Funds
Lakeside Facilities-to account for collection of fees assessed to developers and for expenditure made on
Lake Side facilities projects.
Animal Shelter - to account for collection of fees assessed developers and for expenditures made on
animal shelter facilities projects.
National Pollutant Discharge System (N.P.D.E.S.) - to account for fees assessed to property owners for
the N.P.D.E.S., which is mandated by the federal government. This requires cities to clean up storm water
runoff.
PEG Grant - to account for public access cable channel grant revenue provided by cable franchisees
based on subscribers. Funds are used for PEG access equipment, production equipment, as well as
renovation or construction of PEG access facilities.
The Anchor — to account for expenditures funded by the Homeless Emergency Aid Program and
Project Homekey used for crises stabilization housing complex owned by the City and operated by the
Social Work Action Group serving chronic homeless individuals from the Lake Elsinore and adjacent
county areas.
Measure Z—to account for revenues derived from a locally controlled one-cent sales transaction and use
tax and to account for expenditures that address City services, public safety, health, or catastrophic
emergencies.
Pedestrian Sidewalk - to account for expenditures funded by the Local Transportation Commission grant
funding used for the SB 821 Bicycle and Pedestrian Facility Program.
Lake Destratifi cation and Water Fund - to account for expenditures and receipts in jointly made by
Elsinore Valley Municipal Water District, Riverside County, and the City to jointly fund and maintain the
destratifi cation equipment, axial flow equipment, and stabilize the water level of the lake.
Capital Project Funds
Miscellaneous General Project-to account for miscellaneous general projects of the City.
Park Quimby Improvement - to account for the improvement and development of parks that are financed
by developer fees.
Storm Drains - to account for the capital improvements of upgrading the storm drains within the City that
are financed by the development fees.
Library Facilities - to account for general capital improvements necessary for the upgrade and
maintenance of the Public Libraries within the City. Financed by development fees, upgrades include the
purchase of reading material.
Traffic Impact-to account for projects related to traffic improvements, financed by development fees.
Fire Facilities -to account for the construction of fire facilities financed by development fees.
Public Improvement In-Lieu - to account for special designated improvements to City property, financed
by development fees.
108
CITY OF LAKE ELSINORE
Non-Major Governmental Funds
Total Road Improvement Program - to account for projects related to road improvements, financed by
debt proceeds.
Transportation Uniform Mitigation Fee (TUMF) - to account for multi-jurisdictional development impact fee
paid for by new development to provide the transportation infrastructure necessary to accommodate new
development.
La Strada RBBD —to account for projects related to La Strada Road and Bridge improvements, financed
by development fees.
Permanent Fund
Endowment Trust - to account for assets held by the City as a trustee capacity for the Adolph Korn
Estate. Money is held for the purpose of building a nurse's home for a proposed hospital within the City.
Until that time, interest earnings from the estate are used as a scholarship fund for college tuition for
students seeking a degree in the nursing field
109
CITY OF LAKE ELSINORE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Special Revenue Funds
Supplemental
Law
Enforcement Transportation
Service Traffic Offender Gas Tax Measure A
Assets:
Cash and investments $ - $ $ 472,222 $ 740,466
Receivables:
Accounts - - -
Notes and loans - - -
Accrued interest - 1,240 1,342
Prepaid costs - - -
Due from other governments - 114,668 513,567
Restricted assets:
Cash and investments with fiscal agents - - -
Total Assets $ - $ - $ 588,130 $ 1,255,375
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ - $ $ 30,620 $
Deposits payable - -
Due to other funds - -
Total Liabilities - - 30,620 -
Deferred Inflows of Resources:
Unavailable revenues - - -
Total Deferred Inflows of Resources - - - -
Fund Balances:
Nonspendable - - -
Restricted - 557,510 1,255,375
Assigned - - -
Total Fund Balances - - 557,510 1,255,375
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ - $ - $ 588,130 $ 1,255,375
110
CITY OF LAKE ELSINORE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021 (CONTINUED)
Special Revenue Funds
City-wide
SB1186 CAS Lighting and
Education Traffic Safety Landscaping L.L.M.D No. 1
Assets:
Cash and investments $ 35,997 $ - $ 731,134 $ 419,566
Receivables:
Accounts - - - -
Notes and loans - - - -
Accrued interest 40 - 888 1,836
Prepaid costs - - 46,527 -
Due from other governments 27,179 76,994 12,419
Restricted assets:
Cash and investments with fiscal agents - - 26,121 -
Total Assets $ 36,037 $ 27,179 $ 881,664 $ 433,821
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 316 $ - $ 196,431 $ 47,807
Deposits payable - - - -
Due to other funds - 13,804 - -
Total Liabilities 316 13,804 196,431 47,807
Deferred Inflows of Resources:
Unavailable revenues - - 52,724 -
Total Deferred Inflows of Resources - - 52,724 -
Fund Balances:
Nonspendable - - 46,527 -
Restricted 35,721 13,375 585,982 386,014
Assigned - - - -
Total Fund Balances 35,721 13,375 632,509 386,014
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 36,037 $ 27,179 $ 881,664 $ 433,821
111
CITY OF LAKE ELSINORE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Special Revenue Funds
Developer
AB2766 Air Agreement
Geothermal Pollution C.D.B.G Revenue/Trust
Assets:
Cash and investments $ 13,895 $ 475,773 $ - $ -
Receivables:
Accounts - - - -
Notes and loans - - - -
Accrued interest 13 530 - 124
Prepaid costs - - - -
Due from other governments 21,068 18,750 -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets $ 13,908 $ 497,371 $ 18,750 $ 124
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ $ - $ - $ -
Deposits payable - - -
Due to other funds - 9,375 -
Total Liabilities - 9,375 -
Deferred Inflows of Resources:
Unavailable revenues - - 9,375 -
Total Deferred Inflows of Resources - - 9,375 -
Fund Balances:
Nonspendable - - - -
Restricted 13,908 497,371 - 124
Assigned - - - -
Total Fund Balances 13,908 497,371 - 124
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 13,908 $ 497,371 $ 18,750 $ 124
112
CITY OF LAKE ELSINORE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021 (CONTINUED)
Special Revenue Funds
Affordable City Hall/Public Community Lakeside
Housing In-Lieu Works Center Facilities
Assets:
Cash and investments $ 421,465 $ - $ - $ 13,898
Receivables:
Accounts - - - -
Notes and loans 3,342,224 - - -
Accrued interest 87,384 - - 12
Prepaid costs - - - -
Due from other governments - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets $ 3,851,073 $ $ - $ 13,910
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 174,421 $ -
Deposits payable 2,823 - - -
Due to other funds - - - -
Total Liabilities 177,244 - - -
Deferred Inflows of Resources:
Unavailable revenues 85,452 - - -
Total Deferred Inflows of Resources 85,452 - - -
Fund Balances:
Nonspendable - - - -
Restricted 3,588,377 - - 13,910
Assigned - - - -
Total Fund Balances 3,588,377 - - 13,910
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 3,851,073 $ - $ - $ 13,910
113
CITY OF LAKE ELSINORE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Special Revenue Funds
Animal Shelter N.P.D.E.S. PEG Grant The Anchor
Assets:
Cash and investments $ - $ $ 46,739 $ 259,707
Receivables:
Accounts - 4,480 -
Notes and loans - - -
Accrued interest 27 427 53 311
Prepaid costs - - - -
Due from other governments - 272,322
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets $ 27 $ 272,749 $ 519272 $ 260,018
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ - $ 3,726 $ $ 21,687
Deposits payable - - -
Due to other funds - 53,598 -
Total Liabilities - 57,324 21,687
Deferred Inflows of Resources:
Unavailable revenues - 136,161 -
Total Deferred Inflows of Resources - 136,161 - -
Fund Balances:
Nonspendable - - -
Restricted 27 79,264 51,272 238,331
Assigned - - - -
Total Fund Balances 27 799264 519272 238,331
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 27 $ 272,749 $ 519272 $ 260,018
114
CITY OF LAKE ELSINORE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021 (CONTINUED)
Capital Projects
Special Revenue Funds Funds
Lake
Pedestrian Destratification Miscellaneous
Measure Z Sidewalk SB821 and Water Fund General Project
Assets:
Cash and investments $ 793,282 $ $ 477,000 $ 716
Receivables:
Accounts - 26,175 -
Notes and loans - -
Accrued interest 175 544
Prepaid costs - - -
Due from other governments 2,674,124 91,692 617,590
Restricted assets:
Cash and investments with fiscal agents - 2,581,498 -
Total Assets $ 3,467,581 $ $ 3,176,909 $ 618,306
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ - $ $ 71 $ 146,524
Deposits payable - - -
Due to other funds - - -
Total Liabilities - - 71 146,524
Deferred Inflows of Resources:
Unavailable revenues - 58,933 276,779
Total Deferred Inflows of Resources - - 58,933 276,779
Fund Balances:
Nonspendable - - -
Restricted 3,467,581 3,117,905 -
Assigned - - 195,003
Total Fund Balances 3,467,581 - 3,117,905 195,003
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 3,467,581 $ - $ 3,176,909 $ 618,306
115
CITY OF LAKE ELSINORE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Capital Projects Funds
Park Quimby Library
Development Storm Drains Facilities Traffic Impact
Assets:
Cash and investments $ 681,534 $ 1,273,171 $ 1,293,419 $ 540,603
Receivables:
Accounts - - - -
Notes and loans - - - -
Accrued interest 767 1,515 1,476 1,504
Prepaid costs - - - -
Due from other governments - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets $ 682,301 $ 1,274,686 $ 1,294,895 $ 542,107
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ $ $ 15,666 $ -
Deposits payable - -
Due to other funds - -
Total Liabilities - 15,666 -
Deferred Inflows of Resources:
Unavailable revenues - -
Total Deferred Inflows of Resources - - - -
Fund Balances:
Nonspendable - -
Restricted 682,301 1,274,686 1,279,229 542,107
Assigned - - - -
Total Fund Balances 682,301 1,274,686 1,279,229 542,107
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 682,301 $ 1,274,686 $ 1,294,895 $ 542,107
116
CITY OF LAKE ELSINORE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021 (CONTINUED)
Capital Projects Funds
Public Total Road
Improvement In- Improvement
Fire Facilities Lieu Program TUMF
Assets:
Cash and investments $ 285,483 $ 1,585,878 $ 482 $
Receivables:
Accounts - - - -
Notes and loans - - - -
Accrued interest 322 1,805 23 -
Prepaid costs - - - -
Due from other governments - - 272,066
Restricted assets:
Cash and investments with fiscal agents - - 14,074 -
Total Assets $ 285,805 $ 1,587,683 $ 14,579 $ 272,066
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ $ $ $ -
Deposits payable - - -
Due to other funds - - 133,314
Total Liabilities 133,314
Deferred Inflows of Resources:
Unavailable revenues - 136,033
Total Deferred Inflows of Resources - - - 136,033
Fund Balances:
Nonspendable - -
Restricted 285,805 1,587,683 14,579 2,719
Assigned - - - -
Total Fund Balances 285,805 1,587,683 14,579 2,719
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 285,805 $ 1,587,683 $ 14,579 $ 272,066
117
CITY OF LAKE ELSINORE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Capital Projects
Funds Permanent Fund
Endowment Total
Trust-Adolph Governmental
La Strada RBBD Korn Funds
Assets:
Cash and investments $ 24,261 $ 34,182 $ 10,620,873
Receivables:
Accounts - - 30,655
Notes and loans - - 3,342,224
Accrued interest 28 39 102,425
Prepaid costs - - 46,527
Due from other governments - 4,712,439
Restricted assets:
Cash and investments with fiscal agents - - 2,621,693
Total Assets $ 24,289 $ 34,221 $ 21,476,836
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ $ $ 637,269
Deposits payable 2,823
Due to other funds 210,091
Total Liabilities - 850,183
Deferred Inflows of Resources:
Unavailable revenues - 755,457
Total Deferred Inflows of Resources - - 755,457
Fund Balances:
Nonspendable - 20,000 66,527
Restricted 24,289 - 19,595,445
Assigned - 14,221 209,224
Total Fund Balances 24,289 34,221 19,871,196
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 24,289 $ 34,221 $ 21,476,836
118
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CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Special Revenue Funds
Supplemental
Law
Enforcement Transportation
Service Traffic Offender Gas Tax Measure A
Revenues:
Taxes $ - $ $ $ -
Special assessments -
Licenses and permits - 26,000 - -
Intergovernmental 156,727 - 2,556,677 1,780,250
Charges for services - - -
Investment earnings - 3,125 4,884
Fines and forfeitures - - -
Miscellaneous - - - -
Total Revenues 156,727 26,000 2,559,802 1,785,134
Expenditures:
Current:
General government - - - -
Public safety 156,727 26,000
Community development - -
Community services - -
Public Services - 419,462 -
Debt service:
Principal retirement - -
Interest and fiscal charges - - -
Total Expenditures 156,727 26,000 419,462 -
Excess(Deficiency)of Revenues
Over(Under)Expenditures - - 2,140,340 1,785,134
Other Financing Sources(Uses):
Transfers in - - -
Transfers out - (2,586,567) (2,349,522)
Total Other Financing Sources
(Uses) - (2,586,567) (2,349,522)
Net Change in Fund Balances - (446,227) (564,388)
Fund Balances, Beginning of Year - 1,003,737 1,819,763
Restatements - - -
Fund Balances,Beginning of Year,as Restated - 1,003,737 1,819,763
Fund Balances, End of Year $ - $ $ 557,510 $ 1,255,375
120
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
Special Revenue Funds
City-wide
SB1186 CAS Lighting and
Education Traffic Safety Landscaping L.L.M.D No.1
Revenues:
Taxes $ - $ $ - $ -
Special assessments - 1,838,853 708,481
Licenses and permits - - -
Intergovernmental 11,624
Charges for services - - -
Investment earnings 154 3,067 6,622
Fines and forfeitures - 196,501 - -
Miscellaneous - - 176,294 -
Total Revenues 11,778 196,501 2,018,214 715,103
Expenditures:
Current:
General government - - - -
Public safety - 183,126 -
Community development - -
Community services - - -
Public Services 1,686 1,834,066 1,584,035
Debt service:
Principal retirement - 174,713 -
Interest and fiscal charges - - 187,515 -
Total Expenditures 1,686 183,126 2,196,294 1,584,035
Excess(Deficiency)of Revenues
Over(Under)Expenditures 10,092 13,375 (178,080) (868,932)
Other Financing Sources(Uses):
Transfers in - - 629,990 -
Transfers out - -
Total Other Financing Sources
(Uses) - 629,990 -
Net Change in Fund Balances 10,092 13,375 451,910 (868,932)
Fund Balances, Beginning of Year 25,629 - 180,599 1,254,946
Restatements - - -
Fund Balances,Beginning of Year,as Restated 25,629 180,599 1,254,946
Fund Balances, End of Year $ 35,721 $ 13,375 $ 632,509 $ 386,014
121
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Special Revenue Funds
Developer
AB2766 Air Agreement
Geothermal Pollution C.D.B.G Revenue/Trust
Revenues:
Taxes $ - $ $ $
Special assessments - -
Licenses and permits - 59,000
Intergovernmental - 82,856 94,573 -
Charges for services - - - -
Investment earnings 51 2,004 538
Fines and forfeitures - - -
Miscellaneous - - - -
Total Revenues 51 84,860 94,573 59,538
Expenditures:
Current:
General government - - - -
Public safety - -
Community development - 20,812 -
Community services - -
Public Services -
Debt service:
Principal retirement -
Interest and fiscal charges - -
Total Expenditures - - 20,812 -
Excess(Deficiency)of Revenues
Over(Under)Expenditures 51 84,860 73,761 59,538
Other Financing Sources(Uses):
Transfers in - - - 25,580
Transfers out - (9,375) (147,106)
Total Other Financing Sources
(Uses) - - (9,375) (121,526)
Net Change in Fund Balances 51 84,860 64,386 (61,988)
Fund Balances, Beginning of Year 13,857 412,511 (64,386) 62,112
Restatements - - -
Fund Balances,Beginning of Year,as Restated 13,857 412,511 (64,386) 62,112
Fund Balances, End of Year $ 13,908 $ 497,371 $ - $ 124
122
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
Special Revenue Funds
Affordable City Hall/Public Community Lakeside
Housing In-Lieu Works Center Facilities
Revenues:
Taxes $ - $ $ $ -
Special assessments - -
Licenses and permits - 64,060 40,316 58,150
Intergovernmental 545,602 - - -
Charges for services - - -
Investment earnings 7,318 40
Fines and forfeitures - -
Miscellaneous - - - -
Total Revenues 552,920 64,060 40,316 58,190
Expenditures:
Current:
General government 20,029 - - -
Public safety - -
Community development - -
Community services - -
Public Services - -
Debt service:
Principal retirement - -
Interest and fiscal charges - -
Total Expenditures 20,029 - - -
Excess(Deficiency)of Revenues
Over(Under)Expenditures 532,891 64,060 40,316 58,190
Other Financing Sources(Uses):
Transfers in 155,000 22,556 19,137 -
Transfers out (1,325,392) (86,616) (59,453) (124,359)
Total Other Financing Sources
(Uses) (1,170,392) (64,060) (40,316) (124,359)
Net Change in Fund Balances (637,501) (66,169)
Fund Balances, Beginning of Year 4,225,878 80,079
Restatements - -
Fund Balances,Beginning of Year,as Restated 4,225,878 80,079
Fund Balances, End of Year $ 3,588,377 $ $ $ 13,910
123
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Special Revenue Funds
Animal Shelter N.P.D.E.S. PEG Grant The Anchor
Revenues:
Taxes $ - $ $ $ -
Special assessments - -
Licenses and permits 25,654 647,018 13,747
Intergovernmental - - - 336,000
Charges for services - - - -
Investment earnings 85 2,120 202 713
Fines and forfeitures - - - -
Miscellaneous - - - 500
Total Revenues 25,739 649,138 13,949 337,213
Expenditures:
Current:
General government - - - -
Public safety - - -
Community development - - - 94,787
Community services - - 293 -
Public Services - 137,147 - 4,095
Debt service:
Principal retirement - - -
Interest and fiscal charges - - - -
Total Expenditures - 137,147 293 98,882
Excess(Deficiency)of Revenues
Over(Under)Expenditures 25,739 511,991 13,656 238,331
Other Financing Sources(Uses):
Transfers in 4 - - -
Transfers out (25,580) (432,657) -
Total Other Financing Sources
(Uses) (25,576) (432,657) - -
Net Change in Fund Balances 163 79,334 13,656 238,331
Fund Balances, Beginning of Year (136) (70) 37,616 -
Restatements - - -
Fund Balances,Beginning of Year,as Restated (136) (70) 37,616 -
Fund Balances, End of Year $ 27 $ 79,264 $ 51,272 $ 238,331
124
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
Capital Projects
Special Revenue Funds Funds
Lake
Pedestrian Destratification Miscellaneous
Measure Z Sidewalk SB821 and Water Fund General Project
Revenues:
Taxes $ 3,468,153 $ - $ $ -
Special assessments -
Licenses and permits -
Intergovernmental 1,060,675
Charges for services - 1,633,010 -
Investment earnings 486 580 3,137 -
Fines and forfeitures - - -
Miscellaneous - - - -
Total Revenues 3,468,639 580 1,636,147 1,060,675
Expenditures:
Current:
General government - - 2,105 1,062,924
Public safety - -
Community development
Community services -
Public Services 1,213,105
Debt service:
Principal retirement -
Interest and fiscal charges - -
Total Expenditures - - 1,215,210 1,062,924
Excess(Deficiency)of Revenues
Over(Under)Expenditures 3,468,639 580 420,937 (2,249)
Other Financing Sources(Uses):
Transfers in - 245,427 - 125,000
Transfers out (1,058) (473,669) (17,278)
Total Other Financing Sources
(Uses) (1,058) (228,242) - 107,722
Net Change in Fund Balances 3,467,581 (227,662) 420,937 105,473
Fund Balances, Beginning of Year - 227,662 - 89,530
Restatements - 2,696,968 -
Fund Balances,Beginning of Year,as Restated - 227,662 2,696,968 89,530
Fund Balances, End of Year $ 3,467,581 $ - $ 3,117,905 $ 195,003
125
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Capital Projects Funds
Park Quimby Library
Development Storm Drains Facilities Traffic Impact
Revenues:
Taxes $ - $ $ - $
Special assessments - - -
Licenses and permits 213,582 1,020,319 52,200 515,029
Intergovernmental - - - -
Charges for services - - - -
Investment earnings 2,924 6,728 5,491 5,296
Fines and forfeitures - - - -
Miscellaneous - - - -
Total Revenues 216,506 1,027,047 57,691 520,325
Expenditures:
Current:
General government - - - -
Public safety - - -
Community development - - -
Community services - - 38,274
Public Services - - -
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
Total Expenditures - - 38,274 -
Excess(Deficiency)of Revenues
Over(Under)Expenditures 216,506 1,027,047 19,417 520,325
Other Financing Sources(Uses):
Transfers in - - - -
Transfers out (52,122) (469,101) (913,221)
Total Other Financing Sources
(Uses) (52,122) (469,101) - (913,221)
Net Change in Fund Balances 164,384 557,946 19,417 (392,896)
Fund Balances, Beginning of Year 517,917 716,740 1,259,812 935,003
Restatements - - - -
Fund Balances,Beginning of Year,as Restated 517,917 716,740 1,259,812 935,003
Fund Balances, End of Year $ 682,301 $ 1,274,686 $ 1,279,229 $ 542,107
126
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
Capital Projects Funds
Public Total Road
Improvement In- Improvement
Fire Facilities Lieu Program TUMF
Revenues:
Taxes $ - $ $ - $
Special assessments - - -
Licenses and permits 102,450 971,842 - -
Intergovernmental - - - 1,221,775
Charges for services - - - -
Investment earnings 1,222 7,415 360
Fines and forfeitures - - -
Miscellaneous - - - -
Total Revenues 103,672 979,257 360 1,221,775
Expenditures:
Current:
General government - - - -
Public safety -
Community development -
Community services - - -
Public Services - - 2,978
Debt service:
Principal retirement - 250,000
Interest and fiscal charges - 245,938
Total Expenditures - - 498,916 -
Excess(Deficiency)of Revenues
Over(Under)Expenditures 103,672 979,257 (498,556) 1,221,775
Other Financing Sources(Uses):
Transfers in - - 501,566 -
Transfers out - - - (575,364)
Total Other Financing Sources
(Uses) - - 501,566 (575,364)
Net Change in Fund Balances 103,672 979,257 3,010 646,411
Fund Balances, Beginning of Year 182,133 608,426 11,569 (643,692)
Restatements - - -
Fund Balances,Beginning of Year,as Restated 182,133 608,426 11,569 (643,692)
Fund Balances, End of Year $ 285,805 $ 1,587,683 $ 14,579 $ 2,719
127
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Capital Projects
Funds Permanent Fund
Endowment Total
Trust-Adolph Governmental
La Strada RBBD Korn Funds
Revenues:
Taxes $ - $ - $ 3,468,153
Special assessments - - 2,547,334
Licenses and permits - - 3,809,367
Intergovernmental - - 7,846,759
Charges for services - - 1,633,010
Investment earnings 99 145 64,806
Fines and forfeitures - - 196,501
Miscellaneous - - 176,794
Total Revenues 99 145 19,742,724
Expenditures:
Current:
General government - - 1,085,058
Public safety - - 365,853
Community development - - 115,599
Community services - - 38,567
Public Services - - 5,196,574
Debt service:
Principal retirement - - 424,713
Interest and fiscal charges - - 433,453
Total Expenditures - - 7,659,817
Excess(Deficiency)of Revenues
Over(Under)Expenditures 99 145 12,082,907
Other Financing Sources(Uses):
Transfers in - - 1,724,260
Transfers out (9,648,440)
Total Other Financing Sources
(Uses) - - (7,924,180)
Net Change in Fund Balances 99 145 4,158,727
Fund Balances, Beginning of Year 24,190 34,076 13,015,501
Restatements - - 2,696,968
Fund Balances,Beginning of Year,as Restated 24,190 34,076 15,712,469
Fund Balances, End of Year $ 24,289 $ 34,221 $ 19,871,196
128
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
SUPPLEMENTAL LAW ENFORCEMENT SERVICE
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources(Inflows):
Intergovernmental 155,580 155,580 156,727 1,147
Amounts Available for Appropriations 155,580 155,580 156,727 1,147
Charges to Appropriation (Outflow):
Public safety - 155,580 156,727 (1,147)
Total Charges to Appropriations - 155,580 156,727 (1,147)
Budgetary Fund Balance,June 30 $ 155,580 $ - $ - $ -
129
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
TRAFFIC OFFENDER
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources(Inflows):
Licenses and permits 32,800 32,800 26,000 (6,800)
Amounts Available for Appropriations 32,800 32,800 26,000 (6,800)
Charges to Appropriation (Outflow):
Public safety - 32,800 26,000 6,800
Total Charges to Appropriations - 32,800 26,000 6,800
Budgetary Fund Balance,June 30 $ 32,800 $ - $ - $ -
130
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
GAS TAX
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $1,003,737 $ 1,003,737 $ 1,003,737 $ -
Resources(Inflows):
Intergovernmental 2,567,250 2,585,232 2,556,677 (28,555)
Use of money and property 13,000 7,107 3,125 (3,982)
Amounts Available for Appropriations 3,583,987 3,596,076 3,563,539 (32,537)
Charges to Appropriation (Outflow):
Public services 1,246,780 415,097 419,462 (4,365)
Transfers out 1,330,471 3,102,979 2,586,567 516,412
Total Charges to Appropriations 2,577,251 3,518,076 3,006,029 512,047
Budgetary Fund Balance, June 30 $1,006,736 $ 78,000 $ 557,510 $ 479,510
131
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION MEASURE A
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $1,819,763 $ 1,819,763 $ 1,819,763 $ -
Resources(Inflows):
Intergovernmental 1,172,000 1,172,000 1,780,250 608,250
Use of money and property 37,000 30,000 4,884 (25,116)
Amounts Available for Appropriations 3,028,763 3,021,763 3,604,897 583,134
Charges to Appropriation (Outflow):
Transfers out 2,540,500 2,545,806 2,349,522 196,284
Total Charges to Appropriations 2,540,500 2,545,806 2,349,522 196,284
Budgetary Fund Balance,June 30 $ 488,263 $ 475,957 $ 1,255,375 $ 779,418
132
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
SB1186 CAS EDUCATION
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 25,629 $ 25,629 $ 25,629 $ -
Resources(Inflows):
Intergovernmental 11,660 11,660 11,624 (36)
Use of money and property 1,300 1,300 154 (1,146)
Amounts Available for Appropriations 38,589 38,589 37,407 (1,182)
Charges to Appropriation (Outflow):
Public services - - 1,686 (1,686)
Total Charges to Appropriations - - 1,686 (1,686)
Budgetary Fund Balance,June 30 $ 38,589 $ 38,589 $ 35,721 $ (2,868)
133
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SAFETY
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources(Inflows):
Fines and forfeitures 330,450 330,450 196,501 (133,949)
Amounts Available for Appropriations 330,450 330,450 196,501 (133,949)
Charges to Appropriation (Outflow):
Public safety 330,450 330,450 183,126 147,324
Total Charges to Appropriations 330,450 330,450 183,126 147,324
Budgetary Fund Balance, June 30 $ - $ - $ 13,375 $ 13,375
134
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
CITY-WIDE LIGHTING AND LANDSCAPING
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 180,599 $ 180,599 $ 180,599 $ -
Resources(Inflows):
Assessments 1,649,830 1,647,832 1,838,853 191,021
Use of money and property 1,000 2,998 3,067 69
Miscellaneous 7,900 7,900 176,294 168,394
Transfers in 1,239,260 629,990 629,990 -
Amounts Available for Appropriations 3,078,589 2,469,319 2,828,803 359,484
Charges to Appropriation (Outflow):
Public services 2,061,540 2,061,540 1,834,066 227,474
Debt service:
Principal retirement - 174,713 174,713 -
Interest and fiscal charges - 187,515 187,515 -
Total Charges to Appropriations 2,061,540 2,423,768 2,196,294 227,474
Budgetary Fund Balance, June 30 $1,017,049 $ 45,551 $ 632,509 $ 586,958
135
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
L.L.M.D NO. 1
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $1,254,946 $ 1,254,946 $ 1,254,946 $ -
Resources(Inflows):
Assessments 689,210 689,210 708,481 19,271
Use of money and property 11,000 11,000 6,622 (4,378)
Transfers in 13,700 13,700 - (13,700)
Amounts Available for Appropriations 1,968,856 1,968,856 1,970,049 1,193
Charges to Appropriation (Outflow):
Public services 591,720 545,940 1,584,035 (1,038,095)
Total Charges to Appropriations 591,720 545,940 1,584,035 (1,038,095)
Budgetary Fund Balance, June 30 $1,377,136 $ 1,422,916 $ 386,014 $ (1,036,902)
136
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
GEOTHERMAL
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 13,857 $ 13,857 $ 13,857 $ -
Resources(Inflows):
Use of money and property 450 200 51 (149)
Amounts Available for Appropriations 14,307 14,057 13,908 (149)
Budgetary Fund Balance,June 30 $ 14,307 $ 14,057 $ 13,908 $ (149)
137
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
AB2766 AIR POLLUTION
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 412,511 $ 412,511 $ 412,511 $ -
Resources(Inflows):
Intergovernmental 75,000 50,000 82,856 32,856
Use of money and property 2,000 12,000 2,004 (9,996)
Amounts Available for Appropriations 489,511 474,511 497,371 22,860
Charges to Appropriation (Outflow):
Public services 10,000 10,000 - 10,000
Transfers out 455,558 474,511 - 474,511
Total Charges to Appropriations 465,558 484,511 - 484,511
Budgetary Fund Balance,June 30 $ 23,953 $ (10,000) $ 497,371 $ 507,371
138
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
C.D.B.G
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (64,386) $ (64,386) $ (64,386) $ -
Resources(Inflows):
Intergovernmental 487,000 541,101 94,573 (446,528)
Amounts Available for Appropriations 422,614 476,715 30,187 (446,528)
Charges to Appropriation (Outflow):
Community development 20,812 20,812 20,812 -
Transfers out 466,188 455,903 9,375 446,528
Total Charges to Appropriations 487,000 476,715 30,187 446,528
Budgetary Fund Balance,June 30 $ (64,386) $ - $ - $ -
139
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
DEVELOPER AGREEMENT REVENUE/TRUST
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 62,112 $ 62,112 $ 62,112 $ -
Resources(Inflows):
Licenses and permits 25,000 45,000 59,000 14,000
Use of money and property 2,000 2,000 538 (1,462)
Transfers in 20,259 19,964 25,580 5,616
Amounts Available for Appropriations 109,371 129,076 147,230 18,154
Charges to Appropriation (Outflow):
Transfers out 104,506 69,184 147,106 (77,922)
Total Charges to Appropriations 104,506 69,184 147,106 (77,922)
Budgetary Fund Balance,June 30 $ 4,865 $ 59,892 $ 124 $ (59,768)
140
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
AFFORDABLE HOUSING IN-LIEU
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $4,225,878 $ 4,225,878 $4,225,878 $ -
Resources(Inflows):
Intergovernmental 30,000 350,000 545,602 195,602
Use of money and property 31,000 31,000 7,318 (23,682)
Transfers in - 155,000 155,000 -
Amounts Available for Appropriations 4,286,878 4,761,878 4,933,798 171,920
Charges to Appropriation (Outflow):
General government - 24,000 20,029 3,971
Transfers out 31,680 31,680 1,325,392 (1,293,712)
Total Charges to Appropriations 31,680 55,680 1,345,421 (1,289,741)
Budgetary Fund Balance,June 30 $4,255,198 $ 4,706,198 $ 3,588,377 $ (1,117,821)
141
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
CITY HALL/PUBLIC WORKS
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources(Inflows):
Licenses and permits 102,780 86,616 64,060 (22,556)
Transfers in - - 22,556 22,556
Amounts Available for Appropriations 103,280 86,616 86,616 -
Charges to Appropriation (Outflow):
Transfers out - 86,616 86,616 -
Total Charges to Appropriations - 86,616 86,616 -
Budgetary Fund Balance,June 30 $ 103,280 $ - $ - $ -
142
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
COMMUNITY CENTER
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources(Inflows):
Licenses and permits 70,140 59,353 40,316 (19,037)
Use of money and property 100 100 - (100)
Transfers in - - 19,137 19,137
Amounts Available for Appropriations 70,240 59,453 59,453 -
Charges to Appropriation (Outflow):
Transfers out - 59,453 59,453 -
Total Charges to Appropriations - 59,453 59,453 -
Budgetary Fund Balance,June 30 $ 70,240 $ - $ - $ -
143
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
LAKESIDE FACILITIES
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 80,079 $ 80,079 $ 80,079 $ -
Resources(Inflows):
Licenses and permits 60,000 59,987 58,150 (1,837)
Use of money and property 2,000 1,013 40 (973)
Amounts Available for Appropriations 142,079 141,079 138,269 (2,810)
Charges to Appropriation (Outflow):
Transfers out 123,048 141,079 124,359 16,720
Total Charges to Appropriations 123,048 141,079 124,359 16,720
Budgetary Fund Balance,June 30 $ 19,031 $ - $ 13,910 $ 13,910
144
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
ANIMAL SHELTER
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (136) $ (136) $ (136) $ -
Resources(Inflows):
Licenses and permits 20,000 20,000 25,654 5,654
Use of money and property 200 100 85 (15)
Transfers in - - 4 4
Amounts Available for Appropriations 20,064 19,964 25,607 5,643
Charges to Appropriation (Outflow):
Transfers out 20,460 19,964 25,580 (5,616)
Total Charges to Appropriations 20,460 19,964 25,580 (5,616)
Budgetary Fund Balance,June 30 $ (396) $ - $ 27 $ 27
145
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
N.P.D.E.S.
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (70) $ (70) $ (70) $ -
Resources(Inflows):
Licenses and permits 396,000 699,627 647,018 (52,609)
Use of money and property 2,000 4,373 2,120 (2,253)
Amounts Available for Appropriations 397,930 703,930 649,068 (54,862)
Charges to Appropriation (Outflow):
Public services 146,550 207,869 137,147 70,722
Transfers out 582,450 496,061 432,657 63,404
Total Charges to Appropriations 729,000 703,930 569,804 134,126
Budgetary Fund Balance,June 30 $ (331,070) $ - $ 79,264 $ 79,264
146
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
PEG GRANT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 37,616 $ 37,616 $ 37,616 $ -
Resources(Inflows):
Licenses and permits 20,000 17,914 13,747 (4,167)
Use of money and property 600 786 202 (584)
Amounts Available for Appropriations 58,216 56,316 51,565 (4,751)
Charges to Appropriation (Outflow):
Community services - - 293 (293)
Total Charges to Appropriations - - 293 (293)
Budgetary Fund Balance,June 30 $ 58,216 $ 56,316 $ 51,272 $ (5,044)
147
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
PEDESTRIAN SIDEWALK SB821
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 227,662 $ 227,662 $ 227,662 $ -
Resources(Inflows):
Intergovernmental 125,140 244,020 - (244,020)
Use of money and property - 1,503 580 (923)
Transfers in - - 245,427 245,427
Amounts Available for Appropriations 352,802 473,185 473,669 484
Charges to Appropriation (Outflow):
Transfers out 125,140 245,523 473,669 (228,146)
Total Charges to Appropriations 125,140 245,523 473,669 (228,146)
Budgetary Fund Balance,June 30 $ 227,662 $ 227,662 $ - $ (227,662)
148
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
LAKE DESTRATIFICATION AND WATER FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated $2,696,968 $ 2,696,968 $ 2,696,968 $ -
Resources (Inflows):
Charges for services 1,769,230 1,769,343 1,633,010 (136,333)
Use of money and property 30,000 29,887 3,137 (26,750)
Amounts Available for Appropriation 4,496,198 4,496,198 4,333,115 (163,083)
Charges to Appropriation (Outflow):
General government 100,000 100,000 2,105 97,895
Public works 1,733,200 1,733,200 1,213,105 520,095
Transfers out 150,000 150,000 - 150,000
Total Charges to Appropriations 1,983,200 1,983,200 1,215,210 767,990
Budgetary Fund Balance, June 30 $2,512,998 $ 2,512,998 $ 3,117,905 $ 604,907
149
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT PLAN
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $11,238,798 $ 11,238,798 $ 11,238,798 $ -
Resources(Inflows):
Charges for services 400,000 600,000 610,773 10,773
Use of money and property 30,000 210,000 23,065 (186,935)
Contributions 11,717,568 15,826,022 11,811,990 (4,014,032)
Miscellaneous - 500 5,644 5,144
Transfers in 17,096,450 15,958,233 8,113,086 (7,845,147)
Amounts Available for Appropriations 40,482,816 43,833,553 31,803,356 (12,030,197)
Charges to Appropriation (Outflow):
Public services 10,000 68,161 4,507,507 (4,439,346)
Capital outlay 37,442,208 34,239,762 11,984,842 22,254,920
Transfers out - 3,063,336 3,350,455 (287,119)
Total Charges to Appropriations 37,452,208 37,371,259 19,842,804 17,528,455
Budgetary Fund Balance, June 30 $ 3,030,608 $ 6,462,294 $ 11,960,552 $ 5,498,258
150
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
MISCELLANEOUS GENERAL PROJECT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 89,530 $ 89,530 $ 89,530 $ -
Resources(Inflows):
Intergovernmental 1,018,500 1,063,046 1,060,675 (2,371)
Transfers in - - 125,000 125,000
Amounts Available for Appropriations 1,108,030 1,152,576 1,275,205 122,629
Charges to Appropriation (Outflow):
General government 826,100 1,062,852 1,062,924 (72)
Transfers out 255,040 89,724 17,278 72,446
Total Charges to Appropriations 1,081,140 1,152,576 1,080,202 72,374
Budgetary Fund Balance,June 30 $ 26,890 $ - $ 195,003 $ 195,003
151
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
PARK QUIMBY DEVELOPMENT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 517,917 $ 517,917 $ 517,917 $ -
Resources(Inflows):
Licenses and permits 50,000 150,000 213,582 63,582
Use of money and property 5,000 11,000 2,924 (8,076)
Amounts Available for Appropriations 572,917 678,917 734,423 55,506
Charges to Appropriation (Outflow):
Transfers out 54,000 54,000 52,122 1,878
Total Charges to Appropriations 54,000 54,000 52,122 1,878
Budgetary Fund Balance, June 30 $ 518,917 $ 624,917 $ 682,301 $ 57,384
152
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
STORM DRAINS
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 716,740 $ 716,740 $ 716,740 $ -
Resources(Inflows):
Licenses and permits 100,000 80,000 1,020,319 940,319
Use of money and property 6,000 15,000 6,728 (8,272)
Amounts Available for Appropriations 822,740 811,740 1,743,787 932,047
Charges to Appropriation (Outflow):
Transfers out 799,480 811,740 469,101 342,639
Total Charges to Appropriations 799,480 811,740 469,101 342,639
Budgetary Fund Balance,June 30 $ 23,260 $ - $ 1,274,686 $ 1,274,686
153
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
LIBRARY FACILITIES
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $1,259,812 $ 1,259,812 $ 1,259,812 $ -
Resources(Inflows):
Licenses and permits 50,000 58,927 52,200 (6,727)
Use of money and property 6,000 26,073 5,491 (20,582)
Amounts Available for Appropriations 1,315,812 1,344,812 1,317,503 (27,309)
Charges to Appropriation (Outflow):
Community services 40,000 40,000 38,274 1,726
Transfers out 1,248,788 1,304,812 - 1,304,812
Total Charges to Appropriations 1,288,788 1,344,812 38,274 1,306,538
Budgetary Fund Balance,June 30 $ 27,024 $ - $ 1,279,229 $ 1,279,229
154
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
TRAFFIC IMPACT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 935,003 $ 935,003 $ 935,003 $ -
Resources(Inflows):
Licenses and permits 450,000 450,000 515,029 65,029
Use of money and property 10,000 20,000 5,296 (14,704)
Amounts Available for Appropriations 1,395,003 1,405,003 1,455,328 50,325
Charges to Appropriation (Outflow):
Transfers out 926,000 926,000 913,221 12,779
Total Charges to Appropriations 926,000 926,000 913,221 12,779
Budgetary Fund Balance,June 30 $ 469,003 $ 479,003 $ 542,107 $ 63,104
155
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITIES
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 182,133 $ 182,133 $ 182,133 $ -
Resources(Inflows):
Licenses and permits 80,000 100,000 102,450 2,450
Use of money and property 1,100 4,000 1,222 (2,778)
Amounts Available for Appropriations 263,233 286,133 285,805 (328)
Budgetary Fund Balance, June 30 $ 263,233 $ 286,133 $ 285,805 $ (328)
156
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
PUBLIC IMPROVEMENT IN-LIEU
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 608,426 $ 608,426 $ 608,426 $ -
Resources(Inflows):
Licenses and permits 15,000 1,009,961 971,842 (38,119)
Use of money and property 2,000 27,039 7,415 (19,624)
Amounts Available for Appropriations 625,426 1,645,426 1,587,683 (57,743)
Budgetary Fund Balance,June 30 $ 625,426 $ 1,645,426 $ 1,587,683 $ (57,743)
157
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
TOTAL ROAD IMPROVEMENT PROGRAM
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 11,569 $ 11,569 $ 11,569 $ -
Resources(Inflows):
Use of money and property 600 200 360 160
Transfers in 478,860 484,169 501,566 17,397
Amounts Available for Appropriations 491,029 495,938 513,495 17,557
Charges to Appropriation (Outflow):
Public services 2,000 2,000 2,978 (978)
Debt service:
Principal retirement 240,000 240,000 250,000 (10,000)
Interest and fiscal charges 253,940 253,938 245,938 8,000
Total Charges to Appropriations 495,940 495,938 498,916 (2,978)
Budgetary Fund Balance(Deficits), June 30 $ (4,911) $ - $ 14,579 $ 14,579
158
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
TUMF
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ (643,692) $ (643,692) $ (643,692) $ -
Resources(Inflows):
Intergovernmental 8,958,470 9,602,163 1,221,775 (8,380,388)
Amounts Available for Appropriations 8,314,778 8,958,471 578,083 (8,380,388)
Charges to Appropriation (Outflow):
Transfers out 8,958,470 8,958,471 575,364 8,383,107
Total Charges to Appropriations 8,958,470 8,958,471 575,364 8,383,107
Budgetary Fund Balance,June 30 $ (643,692) $ - $ 2,719 $ 2,719
159
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
PUBLIC FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 158,561,306 $ 158,561,306 $ 158,561,306 $ -
Resources(Inflows):
Use of money and property - - 8,580,253 8,580,253
Amounts Available for Appropriations 158,561,306 158,561,306 167,141,559 8,580,253
Charges to Appropriation (Outflow):
General government - - 86,159 (86,159)
Debt service:
Principal retirement 7,575,000 7,575,000 17,355,000 (9,780,000)
Interest and fiscal charges 8,116,100 8,035,323 4,115,238 3,920,085
Total Charges to Appropriations 15,691,100 15,610,323 53,715,226 (38,104,903)
Budgetary Fund Balance,June 30 $ 142,870,206 $ 142,950,983 $ 113,426,333 $ (29,524,650)
160
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
RECREATION AUTHORITY
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 112,250 $ 112,250 $ 112,250 $ -
Resources(Inflows):
Revenue from lease/rent 1,135,100 1,135,100 1,129,068 (6,032)
Amounts Available for Appropriations 1,247,350 1,247,350 1,241,318 (6,032)
Charges to Appropriation (Outflow):
General government 10,000 - 21,072 (21,072)
Debt service:
Principal retirement 675,000 675,000 675,000 -
Interest and fiscal charges 440,900 450,900 454,400 (3,500)
Total Charges to Appropriations 1,125,900 1,125,900 1,150,472 (24,572)
Budgetary Fund Balance,June 30 $ 121,450 $ 121,450 $ 90,846 $ (30,604)
161
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
FACILITIES FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 29,673,301 $29,673,301 $29,673,301 $ -
Resources(Inflows):
Use of money and property 557,775 557,775 1,141,078 583,303
Refunding bonds issued - 34,970,000 34,970,000 -
Amounts Available for Appropriations 30,231,076 65,201,076 65,784,379 583,303
Charges to Appropriation (Outflow):
General government - 2,000 6,525 (4,525)
Debt service:
Principal retirement 390,000 390,000 390,000 -
Interest and fiscal charges 461,770 1,354,676 1,369,828 (15,152)
Total Charges to Appropriations 851,770 1,746,676 1,766,353 (19,677)
Budgetary Fund Balance,June 30 $ 29,379,306 $63,454,400 $64,018,026 $ 563,626
162
CITY OF LAKE ELSINORE
BUDGETARY COMPARISON SCHEDULE
ENDOWMENT TRUST-ADOLPH KORN
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 34,076 $ 34,076 $ 34,076 $ -
Resources(Inflows):
Use of money and property 200 200 145 (55)
Amounts Available for Appropriations 34,276 34,276 34,221 (55)
Budgetary Fund Balance,June 30 $ 34,276 $ 34,276 $ 34,221 $ (55)
163
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CITY OF LAKE ELSINORE
Internal Service Funds
Insurance Fund - this fund is used to finance and account for the City's risk management and insurance
programs.
Info Systems Fund - this fund is used to account for the cost of providing electronic data processing
equipment, software, and central telephone services.
Support Services Fund - this fund is used to account for the cost of providing central mailing and
reprographic services.
Fleet Services Fund -this fund is used to account for the replacement of the City's vehicles.
Facilities Fund -this fund is used to account for the operations and maintenance of City Hall and the City's
maintenance facilities.
165
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30,2021
Governmental Activities-Internal Service Funds
Support
Insurance Info Systems Services Fleet Services
Assets:
Current:
Cash and investments $ 1,517,338 $ 1,540,442 $ 23,489 $ 997,121
Receivables:
Accrued interest 1,669 433 - -
Prepaid costs - 2,205 - -
Total Current Assets 1,519,007 1,543,080 23,489 997,121
Noncurrent:
Capital assets-net of accumulated depreciation - 181,074 18,426 1,419,819
Total Noncurrent Assets - 181,074 18,426 1,419,819
Total Assets 1,519,007 1,724,154 41,915 2,416,940
Deferred Outflows of Resources:
Pension related items 25,163 131,346 - 108,020
OPEB related items - 126,932 115,017
Total Deferred Outflows of Resources 255163 2585278 - 223,037
Total Assets and Deferred Outflows of Resources $ 1,544,170 $ 1,982,432 $ 41,915 $ 2,639,977
Liabilities,Deferred Inflows of Resources,
and Net Position:
Liabilities:
Current:
Accounts payable $ 5,823 $ 33,809 $ 3,462 $ 32,929
Accrued liabilities 1,849 15,117 8,527
Total Current Liabilities 7,672 48,926 3,462 41,456
Noncurrent:
Net pension liability 156,468 678,024 - 547,635
Total OPEB liability - 1,039,757 779,818
Total Noncurrent Liabilities 156,468 1,717,781 - 1,327,453
Total Liabilities 164,140 1,766,707 3,462 1,368,909
Deferred Inflows of Resources:
Pension related items 2,457 10,644 - 8,597
OPEB related items - 80,939 60,704
Total Deferred Inflows of Resources 2,457 91,583 69,301
Net Position:
Invested in capital assets - 181,074 18,426 1,419,819
Unrestricted 1,377,573 (56,932) 20,027 (218,052)
Total Net Position 1,377,573 124,142 38,453 1,201,767
Total Liabilities,Deferred Inflows of Resources,
and Net Position $ 1,544,170 $ 1,982,432 $ 41,915 $ 2,639,977
166
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30,2021
Governmental
Activities-
Internal
Service Funds
Facilities Totals
Assets:
Current:
Cash and investments $ 728,773 $ 4,807,163
Receivables:
Accrued interest 733 2,835
Prepaid costs 2,450 4,655
Total Current Assets 731,956 4,814,653
Noncurrent:
Capital assets-net of accumulated depreciation 216,438 1,835,757
Total Noncurrent Assets 216,438 1,8353757
Total Assets 948,394 6,650,410
Deferred Outflows of Resources:
Pension related items 30,816 295,345
OPEB related items 111,165 353,114
Total Deferred Outflows of Resources 1413981 648,459
Total Assets and Deferred Outflows of Resources $ 1,090,375 $ 7,298,869
Liabilities,Deferred Inflows of Resources,
and Net Position:
Liabilities:
Current:
Accounts payable $ 24,387 $ 100,410
Accrued liabilities 5,526 31,019
Total Current Liabilities 29,913 131,429
Noncurrent:
Net pension liability 156,468 1,538,595
Total OPEB liability 779,818 2,599,393
Total Noncurrent Liabilities 936,286 4,137,988
Total Liabilities 966,199 4,269,417
Deferred Inflows of Resources:
Pension related items 2,457 24,155
OPEB related items 60,704 202,347
Total Deferred Inflows of Resources 63,161 226,502
Net Position:
Invested in capital assets 216,438 1,835,757
Unrestricted (155,423) 967,193
Total Net Position 61,015 2,802,950
Total Liabilities,Deferred Inflows of Resources,
and Net Position $ 1,090,375 $ 7,298,869
167
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2021
Governmental Activities-Internal Service Funds
Support
Insurance Info Systems Services Fleet Services
Operating Revenues:
Charges for services $ 777,852 $ 1,069,809 $ 106,930 $ 985,084
Miscellaneous 170,411 90 - 50
Total Operating Revenues 948,263 1,069,899 106,930 985,134
Operating Expenses:
Personnel Services 213,784 1,162,792 - 401,071
Contractural Services 106,119 76,850 39,636 9,537
Utilities - 146,556 - -
Maintenance and Operation 416,617 51,505 303,773
Depreciation expense - 57,583 6,066 420,521
Insurance 654,746 - - -
Total Operating Expenses 974,649 1,860,398 97,207 1,134,902
Operating Income(Loss) (26,386) (790,499) 9,723 (149,768)
Nonoperating Revenues(Expenses):
Interest revenue 6,891 1,511 -
Total Nonoperating
Revenues(Expenses) 6,891 1,511 - -
Income(Loss)Before Transfers (19,495) (788,988) 9,723 (149,768)
Transfers in 1,100,000 - 1,500,000
Changes in Net Position (19,495) 311,012 9,723 1,350,232
Net Position:
Beginning of Year 1,397,068 (186,870) 28,730 (148,465)
End of Fiscal Year $ 1,377,573 $ 124,142 $ 38,453 $ 1,201,767
168
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2021
Governmental
Activities-
Internal
Service Funds
Facilities Totals
Operating Revenues:
Charges for services $ 541,584 $ 3,481,259
Miscellaneous 33 170,584
Total Operating Revenues 541,617 3,6519843
Operating Expenses:
Personnel Services 457,919 2,235,566
Contractural Services 90,066 322,208
Utilities 81,729 228,285
Maintenance and Operation 171,047 942,942
Depreciation expense 71,598 555,768
Insurance - 654,746
Total Operating Expenses 8729359 4,9399515
Operating Income(Loss) (330,742) (1,287,672)
Nonoperating Revenues(Expenses):
Interest revenue 2,711 11,113
Total Nonoperating
Revenues(Expenses) 2,711 11,113
Income(Loss)Before Transfers (328,031) (1,276,559)
Transfers in 2,600,000
Changes in Net Position (328,031) 1,323,441
Net Position:
Beginning of Year 389,046 1,479,509
End of Fiscal Year $ 61,015 $ 2,802,950
169
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2021
Governmental Activities-Internal Service Funds
Support
Insurance Info Systems Services Fleet Services
Cash Flows from Operating Activities:
Cash received from customers and users $ 1,079,346 $ 1,706,209 $ 106,930 $ 985,134
Cash paid to suppliers for goods and services (947,410) (1,361,328) (41,031) (853,904)
Cash paid to employees for services (109,531) (494,463) (51,505) (243,115)
Net Cash Provided(Used)by Operating Activities 22,405 (149,582) 14,394 (111,885)
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in - 1,100,000 - 1,500,000
Cash paid-due from other funds 225,930 - -
Cash received-due to other funds - - (225,930)
Net Cash Provided(Used)by
Non-Capital Financing Activities 225,930 1,100,000 1,274,070
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets - (57,954) (165,064)
Net Cash Provided(Used)by
Capital and Related Financing Activities - (57,954) - (165,064)
Cash Flows from Investing Activities:
Interest received 7,995 1,961
Net Cash Provided(Used)by
Investing Activities 7,995 1,961 - -
Net Increase(Decrease)in Cash
and Cash Equivalents 256,330 894,425 14,394 997,121
Cash and Cash Equivalents at Beginning of Year 1,261,008 646,017 9,095 -
Cash and Cash Equivalents at End of Year $ 1,517,338 $ 1,540,442 $ 23,489 $ 997,121
Reconciliation of Operating Income to Net Cash
Provided(Used)by Operating Activities:
Operating income(loss) $ (26,386) $ (790,499) $ 9,723 $ (149,768)
Adjustments to Reconcile Operating Income(loss)
Net Cash Provided(used)by Operating Activities:
Depreciation - 57,583 6,066 420,521
(Increase)decrease in deferred outflows from pensions 8,259 2,340 - (7,755)
(Increase)decrease in deferred outflows OPEB - (69,285) (57,370)
(Increase)decrease in prepaid expense 21,416 6,886
Increase(decrease)in accounts payable 5,823 17,984 (1,395) (443,296)
Increase(decrease)in accured liabilities (112,932) 3,214 456
Increase(decrease)in net pension liability 131,083 284,221 62,259
Increase(decrease)in Total OPEB liability - 352,089 92,150
Increase(decrease)in deferred inflows from OPEB 4,501 (15,734)
Increase(decrease)in deferred inflows from pensions (4,858) (18,616) - (13,348)
Total Adjustments 48,791 640,917 4,671 37,883
Net Cash Provided(Used)by
Operating Activities $ 22,405 $ (149,582) $ 14,394 $ (111,885)
Non-Cash Investing,Capital,and Financing Activities:
No Non-cash activity during the year - -
170
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2021
Governmental
Activities-
Internal Service
Funds
Facilities Totals
Cash Flows from Operating Activities:
Cash received from customers and users $ 541,617 $ 4,419,236
Cash paid to suppliers for goods and services (351,869) (3,555,542)
Cash paid to employees for services (180,207) (1,078,821)
Net Cash Provided(Used)by Operating Activities 9,541 (215,127)
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in - 2,600,000
Cash paid-due from other funds 225,930
Cash received-due to other funds (225,930)
Net Cash Provided(Used)by
Non-Capital Financing Activities 2,600,000
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (2,683) (225,701)
Net Cash Provided(Used)by
Capital and Related Financing Activities (2,683) (225,701)
Cash Flows from Investing Activities:
Interest received 3,132 13,088
Net Cash Provided(Used)by
Investing Activities 3,132 13,088
Net Increase(Decrease)in Cash
and Cash Equivalents 9,990 2,172,260
Cash and Cash Equivalents at Beginning of Year 718,783 2,634,903
Cash and Cash Equivalents at End of Year $ 728,773 $ 4,807,163
Reconciliation of Operating Income to Net Cash
Provided(Used)by Operating Activities:
Operating income(loss) $ (330,742) $ (1,287,672)
Adjustments to Reconcile Operating Income(loss)
Net Cash Provided(used)by Operating Activities:
Depreciation 71,598 555,768
(Increase)decrease in deferred outflows from pensions 2,606 5,450
(Increase)decrease in deferred outflows OPEB (72,733) (199,388)
(Increase)decrease in prepaid expense (2,450) 25,852
Increase(decrease)in accounts payable (6,577) (427,461)
Increase(decrease)in accured liabilities 1,682 (107,580)
Increase(decrease)in net pension liability 19,897 497,460
Increase(decrease)in Total OPEB liability 321,373 765,612
Increase(decrease)in deferred inflows from OPEB 9,745 (1,488)
Increase(decrease)in deferred inflows from pensions (4,858) (41,680)
Total Adjustments 340,283 1,072,545
Net Cash Provided(Used)by
Operating Activities $ 9,541 $ (215,127)
Non-Cash Investing,Capital,and Financing Activities:
No Non-cash activity during the year -
171
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CITY OF LAKE ELSINORE
Private - Purpose Trust Funds
Carl Graves Trust - to account for assets held by the City as a trustee of the Carl Graves Trust Estate.
Money is to fund scholarships to graduates of the Lake Elsinore School system. Scholarships provide funds
for a four-year college degree program.
Successor Agency Trust - to account for assets held by the City as the Successor Agency of the former
Redevelopment Agency. The City distributes remaining assets used to pay enforceable obligations as
required.
173
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
JUNE 30,2021
Private-Purpose Trust Funds
Successor
Agency Private-
Trust-Carl Purpose Trust
Graves Fund Total
Assets:
Pooled cash and investments $ 57,585 $ 11,840,954 $ 11,898,539
Receivables:
Accrued interest 66 14,460 14,526
Prepaid costs - 351,112 351,112
Land held for resale - 6,071,897 6,071,897
Restricted assets:
Cash and investments with fiscal agents - 26,568 26,568
Capital assets:
Capital assets, not being depreciated - 2,004,419 2,004,419
Capital assets, net of accumulated depreciation - 14,981,931 14,981,931
Total Assets $ 57,651 $ 35,291,341 $ 35,348,992
Deferred Outflows of Resources:
Deferred charge on refunding - 1,667,222 1,667,222
Total Deferred Outflows of Resources $ - $ 1,667,222 $ 1,667,222
Liabilities:
Accounts payable $ - $ 117,794 $ 117,794
Accrued interest - 587,461 587,461
Bonds and loans payable due in one year - 2,620,000 2,620,000
Long-term liabilities:
Bonds and loans payable due in more than one year - 70,414,901 70,414,901
Total Liabilities $ - $ 73,740,156 $ 73,740,156
Net Position:
Restricted for organizations and other governments $ 57,651 $ (36,781,593) $ (36,723,942)
Total Net Position $ 57,651 $ (36,781,593) $ (36,723,942)
174
CITY OF LAKE ELSINORE
COMBINING STATEMENT OF CHANGES IN NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
YEAR ENDED JUNE 30, 2021
Successor
Agency Private-
Trust-Carl Purpose Trust
Graves Fund Total
Additions:
Taxes $ - $ 15,054,596 $ 15,054,596
Investment earnings 245 17,887 18,132
Miscellaneous - 350 350
Total Additions 245 15,072,833 15,073,078
Deductions:
Contractual services - 14,269,918 14,269,918
Interest expense - 2,123,508 2,123,508
Depreciation expense - 1,767,846 1,767,846
Costs of issuance - 328,221 328,221
Total Deductions - 18,489,494 18,489,494
Changes in Net Position 245 (3,416,661) (3,416,416)
Net Position- Beginning of the Year 57,406 (33,364,932) (33,307,526)
Net Position -End of the Year $ 57,651 $ (36,781,593) $ (36,723,942)
175
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City of Lake Elsinore, California
Statistical Section Contents
June 30, 2021
The City of Lake Elsinore'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 say about the government's overall financial health. The statistical section offers operational,
economic, and historical data that provide a context for assessing the City's economic condition.
CONTENTS PAGES
Financial Trends
These schedules contain trend information to help the reader understand how the
government's 180-189
Revenue Capacity
These schedules contain information to help the reader assess the government's most
significant local revenue sources, sales taxes and property tax. 190-201
Debt Capacity
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 202-206
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the government's financial activities take place. 208-209
Operating Information
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. 210-213
179
City of Lake Elsinore, California
Net Position By Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2012 2013 2014 2015
GOVERNMENTAL ACTIVITIES
Net Investment in
Capital Assets $ 134,976,102 $ 147,176,443 $ 131,965,428 $ 137,914,627
Restricted 141,619,986 75,129,411 74,462,124 90,537,124
Unrestricted (48,524,474) (2,804,065) 7,500,328 (12,503,489)
Total Governmental
Activities Net Position $ 228,071,614 $ 219,501,789 $ 213,927,880 $ 215,948,262
BUSINESS-TYPE ACTIVITIES
Net Investment in
Capital Assets $ - $ - $ - $ -
Unrestricted - - - -
Total Business-type
Activities Net Position $ - $ - $ - $ -
PRIMARY GOVERNMENT
Net Investment in
Capital Assets $ 134,976,102 $ 147,176,443 $ 131,965,428 $ 137,914,627
Restricted 141,619,986 75,129,411 74,462,124 90,537,124
Unrestricted (48,524,474) (2,804,065) 7,500,328 (12,503,489)
Total Primary
Government Net Position $ 228,071,614 $ 219,501,789 $ 213,927,880 $ 215,948,262
Source: City Finance Department
180
City of Lake Elsinore, California
Net Position By Component(continued)
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 145,170,561 $ 146,735,654 $ 142,754,254 $ 147,000,319 $ 147,522,397 $ 153,408,107
75,054,285 90,363,046 92,281,048 94,960,776 105,362,660 263,683,834
(10,180,146) (12,062,216) (13,553,724) (26,768,225) (31,045,124) (169,103,017)
$ 210,044,700 $ 225,036,484 $ 221,481,578 $ 215,192,870 $ 221,839,933 $ 247,988,924
$ - $ - $ - $ 17,255,744 $ 27,049,079 $ 26,613,234
- - (506,148) (10,434,316) (9,568,742)
$ - $ - $ - $ 16,749,596 $ 16,614,763 $ 17,044,492
$ 145,170,561 $ 146,735,654 $ 142,754,254 $ 164,256,063 $ 174,571,476 $ 180,021,341
75,054,285 90,363,046 92,281,048 94,960,776 105,362,660 263,683,834
(10,180,146) (12,062,216) (13,553,724) (27,274,373) (41,479,440) (178,671,759)
$ 210,044,700 $ 225,036,484 $ 221,481,578 $ 231,942,466 $ 238,454,696 $ 265,033,416
181
City of Lake Elsinore, California
Changes in Net Position
Expenses and Program Revenues
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2012 2013 2014 2015
EXPENSES
Governmental Activities:
General Government $ 11,944,507 $ 8,833,983 $ 7,836,775 $ 8,617,841
Public Safety 11,911,363 12,684,631 14,485,711 18,626,488
Community Development 4,989,313 10,242,652 9,079,863 7,391,688
Community Services 7,010,026 4,416,500 4,819,153 4,652,536
Public Services 9,834,764 10,359,134 10,610,540 11,162,854
Interest on Long-term Debt 8,835,312 6,451,470 6,330,889 8,097,248
Total Governmental Activities
Expenses 54,525,285 52,988,370 53,162,931 58,548,655
Business-type Activities:
Launch Pointe - - - -
Total Business-type Activities
Expenses - - - -
Total Primary Government Expenses $ 54,525,285 $ 52,988,370 $ 53,162,931 $ 58,548,655
PROGRAM REVENUES
Governmental Activities:
Charges for Services:
General Government $ 3,035,324 $ 456,760 $ 460,808 $ 1,464,689
Public Safety - 700,069 1,067,440 1,427,632
Community Development 1,247,117 4,381,899 5,018,102 3,905,472
Community Services 1,578,318 2,822,458 3,112,662 2,405,100
Public Services - 1,117,800 1,574,245 2,329,172
Operating Grants and Contributions 3,306,452 12,172,208 20,954,573 20,141,320
Capital Grants and Contributions 4,539,293 9,587,008 6,485,279 21,044,552
Total Governmental Activities
Program Revenues 13,706,504 31,238,202 38,673,109 52,717,937
Business-type Activities:
Launch Pointe - - - -
Total Business-type Activities
Revenues - - - -
Total Primary Government Revenues $ 13,706,504 $ 31,238,202 $ 38,673,109 $ 52,717,937
NET REVENUES(EXPENSES)
Governmental Activities $ (40,818,781) $ (21,750,168) $ (14,489,822) $ (5,830,718)
Business-type Activities - - -
Total Net Revenues (Expenses) $ (40,818,781) $ (21,750,168) $ (14,489,822) $ (5,830,718)
Source: City Finance Department
182
City of Lake Elsinore, California
Changes in Net Position
Expenses and Program Revenues(continued)
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 6,477,776 $ 8,904,130 $ 5,856,845 $ 5,497,097 $ 7,415,903 $ 7,192,106
19,098,659 21,218,964 20,963,229 21,143,285 22,051,425 22,583,417
4,005,355 4,807,685 5,000,426 5,257,082 4,874,909 5,675,292
5,411,152 9,791,967 3,313,875 3,003,809 2,751,936 2,359,364
18,668,180 14,148,801 43,153,162 23,303,523 21,486,942 24,952,498
11,204,357 11,832,732 11,463,403 11,340,371 14,659,186 5,151,588
64,865,479 70,704,279 89,750,940 69,545,167 73,240,301 67,914,265
- - - 1,588,992 4,219,772 3,967,463
- - - 1,588,992 4,219,772 3,967,463
$ 64,865,479 $ 70,704,279 $ 89,750,940 $ 71,134,159 $ 77,460,073 $ 71,881,728
$ 734,034 $ 1,726,741 $ 2,666,057 $ 1,478,132 $ 2,288,038 $ 1,901,893
1,922,602 2,665,603 1,716,350 1,605,806 1,468,446 1,546,880
4,660,580 8,727,675 9,727,246 7,534,732 7,916,155 8,564,938
2,977,699 858,119 759,254 490,827 435,120 605,248
2,977,138 5,504,572 2,609,931 2,494,149 4,146,898 7,434,970
19,883,338 5,496,146 8,599,061 10,045,467 16,522,110 16,799,986
5,901,491 30,389,367 30,754,329 20,188,402 11,440,911 14,106,537
39,056,882 55,368,223 56,832,228 43,837,515 44,217,678 50,960,452
- - - 249,194 2,105,505 3,728,501
- - - 249,194 2,105,505 3,728,501
$ 39,056,882 7 55,368,223 $ 56,832,228 $ 44,086,709 $ 46,323,183 $ 54,688,953
$ (25,808,597) $ (15,336,056) $ (32,918,712) $ (25,707,652) $ (29,022,623) $ (16,953,813)
- - - (1,339,798) (2,114,267) (238,962)
$ (25,808,597) $ (15,336,056) $ (32,918,712) $ (27,047,450) $ (31,136,890) $ (17,192,775)
183
City of Lake Elsinore, California
Changes in Net Position
General Revenues,Special and Extraordinary Items
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2012 2013 2014 2015
GENERAL REVENUES
Governmental Activities
Taxes
Property Taxes $ 14,698,032 $ 5,804,265 $ 5,487,743 $ 6,276,548
Sales Taxes 7,444,947 6,935,215 8,031,486 8,572,066
Franchise Taxes 2,002,550 2,097,081 2,275,619 2,389,413
Other Taxes 538,402 567,560 760,203 767,058
Fines, Forfeitures and Penalties 1,850,398 592,185 507,265 683,573
Investment Earnings 8,031,256 689,149 574,477 966,365
Miscellaneous 6,992,813 688,105 1,054,958 1,022,472
Special Item
Loss on CFD and AD Investments - - (9,880,891) (4,502,385)
Extraordinary Item
Gain on Dissolution of
Redevelopment Agency 61,700,316 - - -
Total Governmental Activities 103,258,714 17,373,560 8,810,860 16,175,110
Business-type Activities
Investment Earnings - - - -
Miscellaneous - - - -
Total Business-type Activities - - - -
Total General Revenues, Special
and Extraordinary Items 103,258,714 17,373,560 8,810,860 16,175,110
CHANGES IN NET POSITION
Governmental Activities 62,439,933 (4,376,008) (5,678,962) 10,344,392
Business-type Activities - - - -
Total Changes in Net Position $ 62,439,933 $ (4,376,008) $ (5,678,962) $ 10,344,392
Source: City Finance Department
184
City of Lake Elsinore, California
Changes in Net Position
General Revenues,Special and Extraordinary Items (continued)
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 6,537,540 $ 7,380,594 $ 8,030,862 $ 7,986,053 $ 8,990,543 $ 9,677,646
9,939,637 9,745,714 10,071,435 11,057,497 10,896,995 18,068,365
2,423,707 2,297,401 2,477,400 2,553,006 2,587,128 2,762,724
838,364 598,126 560,150 577,805 654,044 550,508
925,517 11,247,531 13,191,802 12,468,683 11,258,137 7,205,149
706,094 2,745,222 3,026,724 3,785,183 2,960,909 2,794,609
21,370,859 34,014,588 37,358,373 38,428,227 37,347,756 41,059,001
- - - 160 255 967
636 6,107 14,559
- - - 796 6,362 15,526
21,370,859 34,014,588 37,358,373 38,429,023 37,354,118 41,074,527
(4,437,738) 18,678,532 4,439,661 12,720,575 6,352,063 24,105,188
- - (1,339,002) (134,833) (223,436)
$ (4,437,738) $ 18,678,532 $ 4,439,661 $ 11,381,573 $ 6,217,230 $ 23,881,752
185
City of Lake Elsinore, California
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2012 2013 2014 2015
GENERALFUND
Nonspendable $ 2,505,503 $ 1,821,906 $ 1,264,392 $ 1,016,468
Unassigned 11,826,885 12,017,317 10,488,843 10,954,475
Total General Fund $ 14,332,388 $ 13,839,223 $ 11,753,235 $ 11,970,943
ALL OTHER GOVERNMENTAL
FUNDS
Nonspendable $ 76,688,811 $ 20,003 $ 20,003 $ 132,037
Restricted 79,292,713 202,134,812 199,162,404 335,415,122
Assigned 12,548,403 1,034,681 1,232,105 1,929,497
Unassigned (987,601) (905,426) (1,014,226) (1,316,398)
Total All Other Governmental Funds $ 167,542,326 $ 202,284,070 $ 199,400,286 $ 336,160,258
Source: City Finance Department
186
City of Lake Elsinore, California
Fund Balances of Governmental Funds(continued)
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 1,029,015 $ 1,096,846 $ 1,031,385 $ 1,077,168 $ 1,023,165 $ 1,031,847
11,365,894 11,512,307 10,807,854 11,067,741 11,035,706 13,715,078
$ 12,394,909 $ 12,609,153 $ 11,839,239 $ 12,144,909 $ 12,058,871 $ 14,746,925
$ 124,177 $ 979,130 $ 182,018 $ 171,532 $ 239,195 $ 481,647
303,860,121 302,110,933 293,344,990 267,464,772 246,825,586 245,593,796
1,548,764 9,313,282 17,628,221 13,188,627 11,342,404 12,169,776
(891) (94,936) - (770,278) (708,284) 3,117,905
$ 305,532,171 $ 312,308,409 $ 311,155,229 $ 280,054,653 $ 257,698,901 $ 261,363,124
187
City of Lake Elsinore,California
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2012 2013 2014 2015
REVENUES
Property Taxes $ 14,738,584 $ 5,844,498 $ 5,495,091 $ 6,249,786
Other Taxes 9,911,400 9,572,675 11,043,792 11,705,293
Special Assessments 1,578,318 1,585,606 1,641,557 1,671,595
Licenses,Permits and Fees 2,908,091 4,999,154 5,936,900 4,655,325
Intergovernmental Revenues 6,193,777 5,055,511 5,582,705 5,812,486
Charges for Services 1,374,351 1,746,713 2,409,558 3,189,138
Fines,Forfeitures and Penalties 1,850,398 927,315 931,168 1,088,411
Investment Earnings 7,180,018 12,122,739 10,315,842 7,972,858
Contributions from Property Owners 1,221,184 8,079,739 5,985,053 22,535,167
Miscellaneous 7,384,749 3,469,837 3,545,812 4,099,189
Total Revenues 54,340,870 53,403,787 52,887,478 68,979,248
EXPENDITURES
Current:
General Government 7,467,755 5,871,649 4,788,505 4,611,722
Public Safety 11,911,364 12,339,592 14,093,095 18,163,150
Community Development 1,608,782 2,925,329 3,407,415 6,200,761
Community Services 5,963,873 4,281,401 4,363,257 4,174,545
Public Services 7,800,095 6,772,010 7,107,120 6,551,578
Pass-through Payments 3,542,473 - - -
Set Aside Suspension -
SERAF Payments - - - -
CapitalOutlay 10,268,753 10,889,810 8,992,686 11,123,256
Debt Service:
Payment to Escrow Agent - - - -
Bond Issuance Costs 238,290 1,260,059 1,485,399 2,445,261
Principal Retirement 6,091,578 5,725,000 18,385,000 7,165,000
Interest and Fiscal Charges 7,951,971 6,081,766 6,091,389 6,231,581
Total Expenditures 62,844,934 56,146,616 68,713,866 66,666,854
Excess(Deficiency)of Revenues
Over(Under)Expenditures (8,504,064) (2,742,829) (15,826,388) 2,312,394
OTHER FINANCING SOURCES(USES)
Transfers In 2,509,613 2,235,297 1,851,084 10,947,946
Transfers Out (2,509,613) (2,235,297) (1,851,084) (10,947,946)
Debt Issuance
Loans Issued
Loan Payments - - -
Premiums 120,640 14,460,000 12,151,673
Discounts (30,000) (23,125) (149,044) (96,307)
Refunding Bonds Issued 1,405,000 27,760,000 25,335,000 137,845,000
Certificates of Participation Issued - - - 7,965,000
Capital Leases -
Tax Allocation Bonds Issued -
Sale of Capital Assets 13,362
Payment to Refunded Bond Escrow Agent (1,345,000) (3,244,386) (19,013,502) (18,542,280)
Total Other Financing Sources(Uses) 30,000 24,613,129 20,632,454 139,336,448
Net Change in Fund Balances before
Special and Extraordinary Items (8,474,064) 21,870,300 4,806,066 141,648,842
Extraordinary/Special Items 11,708,991 - (9,880,891) (4,502,385)
Net Change in Fund Balances $ 3,234,927 $ 21,870,300 $ (5,074,825) $ 137,146,457
Debt Service as a Percentage of
Noncapital Expenditures 27% 29% 40% 24%
The City of Lake Elsinore has elected to show ten years of data for this schedule. The fiscal year of 2012 takes into account the
dissolution of the Redevelopment Agency of the City of Lake Elsinore.
Source:City Finance Department
188
City of Lake Elsinore,California
Changes in Fund Balances of Governmental Funds(continued)
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 6,551,939 $ 7,380,594 $ 8,030,862 $ 7,986,053 $ 8,990,543 $ 9,677,646
13,178,135 12,697,359 13,108,985 14,188,308 14,138,167 21,381,597
1,680,980 1,790,941 2,407,266 4,140,542 4,387,754 8,113,712
6,894,107 7,465,474 4,524,328 3,582,357 5,429,574 6,275,936
6,807,169 6,846,125 9,585,606 9,627,086 11,276,362 12,492,435
2,453,380 2,826,491 5,402,235 3,349,474 4,289,633 5,638,830
1,103,154 2,289,357 913,658 874,765 714,922 447,431
11,117,857 10,410,765 10,364,291 13,644,848 11,677,989 11,105,726
6,219,934 29,339,769 28,853,494 17,974,870 13,222,683 11,984,476
3,574,278 6,630,285 8,102,050 7,316,907 7,773,055 8,473,591
59,580,933 87,677,160 91,292,775 82,685,210 81,900,682 95,591,380
5,318,933 6,345,498 5,233,031 5,323,480 6,408,283 6,068,984
18,614,077 20,751,331 20,507,870 20,724,268 21,627,645 22,184,865
4,164,059 4,395,026 4,730,692 5,198,035 4,911,754 5,737,871
4,984,422 3,963,912 2,577,291 2,242,136 2,433,529 2,043,707
6,345,398 13,968,654 34,578,033 16,849,015 14,483,225 18,264,438
20,106,238 21,241,461 13,364,601 31,718,978 21,291,104 11,984,842
982,386 - - - - -
6,515 - - - - -
7,375,000 8,315,000 8,935,000 34,065,000 40,110,811 47,879,713
11,468,287 11,797,719 11,882,322 11,796,303 14,406,554 9,496,748
79,365,315 90,778,601 101,808,840 127,917,215 125,672,905 123,661,168
(19,784,382) (3,101,441) (10,516,065) (45,232,005) (43,772,223) (28,069,788)
18,142,559 24,483,943 11,523,931 16,851,815 12,958,707 13,100,724
(19,791,262) (24,802,020) (11,523,931) (8,510,790) (14,658,799) (16,353,889)
10,410,000 7,975,000
2,715,525
20,020,000 34,970,000
3,459,380
14,743 14,502 3,557,379 8,262
(1,633,960) 10,091,923 7,989,502 15,357,784 21,035,433 31,725,097
(21,418,342) 6,990,482 (2,526,563) (29,874,221) (22,736,790) 3,655,309
(7,319,955) - -
$ (28,738,297) $ 6,990,482 $ (2,526,563) $ (29,874,221) $ (22,736,790) $ 3,655,309
28% 29% 23% 48% 52% 51%
189
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City of Lake Elsinore, California
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
Fiscal
Year Ended Property Franchise
June 30 Taxes Sales Taxes Taxes Other Taxes Total
2012 14,698,032 7,444,947 2,002,550 538,402 24,683,931
2013 5,804,265 6,935,215 2,097,081 567,560 15,404,121
2014 5,487,743 8,031,486 2,275,619 760,203 16,555,051
2015 6,276,548 8,572,066 2,389,413 767,058 18,005,085
2016 6,537,540 9,939,637 2,423,707 838,364 19,739,248
2017 7,380,594 9,745,714 2,297,401 598,126 20,021,835
2018 8,030,862 10,071,435 2,477,400 560,150 21,139,847
2019 7,986,053 11,057,497 2,553,006 577,805 22,174,361
2020 8,990,543 10,896,995 2,587,128 654,044 23,128,710
2021 9,677,646 18,068,364 2,762,725 550,508 31,059,243
Note: Property taxes significantly decreased in 2012 and in subsequent years due to the dissolution of the Lake Elsinore
Redevelopment Agency on February 1, 2012.
Includes the new Measure Z Retail Sales and Use Tax of$3,468,153.
Sources: City of Lake Elsinore Finance Department
191
City of Lake Elsinore, California
Taxable Sales by Major Industry Groups
Last Ten Fiscal Years
Fiscal General Autos Business Restaurants Building
Year Ended Consumer and and and and
June 30 Goods Transportation Industry Hotels Construction
2012 2,419,664 962,971 253,830 678,111 618,795
2013 2,528,412 1,014,135 213,857 711,110 650,148
2014 2,473,302 1,040,650 406,542 783,964 768,931
2015 2,547,975 1,428,726 430,417 857,198 838,876
2016 2,634,703 1,614,074 426,315 903,775 923,941
2017 2,641,653 1,758,829 526,084 978,920 989,062
2018 2,650,429 1,690,269 584,903 1,047,324 801,425
2019 2,907,744 1,633,711 781,105 1,219,300 984,751
2020 2,887,048 1,681,429 666,683 1,142,999 1,029,994
2021 3,526,083 2,581,550 832,335 1,364,860 1,291,157
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories
presented are intended to provide alternative information regarding the sources of the City's revenue.
Sources: HdL Companies
192
City of Lake Elsinore, California
Taxable Sales by Major Industry Groups(continued)
Fuel Food Other
and and and
Service Stations Drugs Transfers Total
1,046,935 558,890 5,759 6,544,955
990,747 656,593 5,279 6,770,281
1,023,468 622,414 (138) 7,119,133
925,698 641,504 133 7,670,527
901,585 633,606 (3,586) 8,034,413
977,729 510,667 30 8,382,974
975,064 497,074 (1,388) 8,245,100
1,372,455 550,154 144 9,449,364
1,088,448 693,530 (12,093) 9,178,038
1,174,322 1,115,975 (2,678) 11,883,604
193
City of Lake Elsinore,California
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per$100 of taxable value)
AGENCY 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
City Basic Levy' 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Lake Elsinore Unified 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.01900 0.01900 0.01900 0.01900
Menifee School Dist. 0.03486 0.03543 0.03421 0.03275 0.03010 0.03269 0.06080 0.06303 0.06277 0.06111
Metro Water East 0.00370 0.00350 0.00350 0.00350 0.00350 0.00000 - - - -
Metro Water West 0.00370 0.00350 0.00350 0.00350 0.00350 0.00000 - - - -
Metro Water Original Area - - - - - 0.00 0.00350 0.00350 0.00350 0.00350
Mt. San Jacinto Jr. College - - - - 0.01 0.01320 0.01320 0.01320 0.01320 0.01320
Perris School Dist. 0.01983 0.01800 0.02524 0.05588 0.04699 0.05491 0.06000 0.05754 0.05867 0.06000
Perris Union High School 0.03429 0.03429 0.06970 0.06303 0.06236 0.06092 0.05675 0.05243 0.08244 0.08569
Total Direct&
Overlapping2 Tax Rates 1.09638 1.09472 1.13615 1.15866 1.16039 1.16522 1.21325 1.20870 1.23958 1.24250
City's Share of 1%
Levy Per Prop 133 0.17415 0.17415 0.17415 0.17415 0.17415 0.17415 0.07576 0.05007 0.05007 0.05007
GENERAL OBLIGATION DEBT RATE
RDA Basic Rate' 1.00370 0.00000 - - - - - - - -
Total Direct Rates 0.52110 0.51923 0.08908 0.08528 0.08349 0.08181 0.08025 0.07862 0.07755 0.07703
Notes:
'In 1978,the voters of the State of California passed Proposition 13 which set the property tax rate at a 1.00%fixed amount.This 1.00% is
shared by all taxing agencies for which the subject property resides within. In addition to the 1.00%fixed amount, property owners are
charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
2Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates
apply to all city property owners.
'City's Share of 1%Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city.
ERAF general fund tax shifts may not be included in tax ratio figures.
'Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s)from indebtedness
adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values.
The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
5Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section
information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated
from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during
2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as
general fund revenue.
Source: Riverside County Assessor 2010/11 -2019/20 Tax Rate Table
194
City of Lake Elsinore, California
Principal Property Tax Payers
Current Year Compared to 2012
Fiscal Year 2021 Fiscal Year 2012
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
TAXPAYER Value Rank Value�' Value Rank Value(2)
Ridgestone Partners LP $ 51,895,128 1 0.74%
Pacific Castle Lake Elsinore Partners 31,721,992 2 0.46%
Helf Canyon Hills Market Place 1 27,917,815 3 0.40%
Rivers Edge Apartments 26,989,294 4 0.39%
Mohr Affinity, LLC 25,520,923 5 0.37%
HGEF Holding Company LLC 25,486,366 6 0.37%
Costco Wholesale Corporation 19,496,529 7 0.28%
Walmart Stores Inc 18,894,440 8 0.27%
HCP Blue Canary 18,831,744 9 0.27%
Alberhill Development LLC 18,362,210 10 0.26%
100 East Wisconsin Avenue JV $ 50,629,868 1 1.29%
Pacific Aggregates Inc 47,953,485 2 1.22%
Mohr Affinity, LLC 44,325,390 3 1.13%
Castle and Cooke Lake Elsinore West 38,998,877 4 0.99%
JPMCC 2006-LDP6 Lake Elsinore 25,034,201 5 0.64%
Broadstone Rivers Edge 19,000,000 6 0.48%
Pacific Clay Products Inc 18,722,325 7 0.48%
Richmond American Homes of Maryland 17,725,422 8 0.45%
Elsinore Valley Water and Sewer Facilities 16,880,642 9 0.43%
Costco Wholesale 16,845,438 10 0.43%
$ 265,116,441 3.80% $ 296,115,648 7.55%
(1)2019-20 Total City Taxable Assessed Valuation: $6,968,081,249
(2)2011-12 Total City Taxable Assessed Valuation $3,923,526,176
Source: Riverside County Assessor 2020/21 and 2011/12 Combined Tax Rolls and the SBE Non Unitary Tax Roll
195
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City of Lake Elsinore, California
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2012 1,874,319 1,770,492 94.46% 64,528 1,835,020 98.06%
2013 1,844,800 1,767,808 95.83% 50,284 1,818,092 99.32%
2014 1,935,629 1,822,844 94.17% 43,741 1,866,585 96.77%
2015 2,171,126 2,074,751 95.56% 61,115 2,135,866 97.58%
2016 2,308,803 2,192,912 94.98% 66,383 2,259,295 97.86%
2017 2,434,193 2,334,855 95.92% 67,441 2,402,296 98.69%
2018 2,553,532 2,465,681 96.56% 43,212 2,508,893 98.25%
2019 2,719,663 2,638,238 97.01% 50,111 2,688,349 98.85%
2020 3,032,233 2,910,460 95.98% 63,596 2,974,056 98.08%
2021 3,088,305 2,948,611 95.48% 43,404 2,992,015 96.88%
Note: The amounts presented include City of Lake Elsinore property taxes only(excludes Redevelopment Agency taxes).
Sources: County of Riverside,Auditor-Controller and City of Lake Elsinore Finance Department
197
City of Lake Elsinore, California
Assessed Value and Estimated Actual Value
of Taxable Property
Last Ten Fiscal Years
City
Fiscal Year Taxable
Ended Less: Assessed
June 30 Secured Unsecured Exemptions Value
2012 3,777,595,058 145,931,118 n/a 3,923,526,176
2013 3,666,499,221 167,898,562 n/a 3,834,397,783
2014 3,888,934,354 142,565,053 n/a 4,031,499,407
2015 4,463,835,597 136,300,859 (105,231,318) 4,494,905,138
2016 4,768,722,323 129,261,454 (93,034,816) 4,804,948,961
2017 5,177,285,267 130,180,313 (95,434,240) 5,212,031,340
2018 5,573,186,823 125,275,157 (99,693,567) 5,598,768,413
2019 6,131,330,394 121,282,148 (109,102,106) 6,143,510,436
2020 6,550,002,491 117,440,229 (114,493,687) 6,552,949,033
2021 6,924,168,897 128,326,411 (129,757,835) 6,922,737,473
Notes:
n/a=not available
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon
the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor"
(limited to a maximum increase of 2%). With few exceptions, property at the purchase price of the property sold. The assessed valuation
data shown above represents the only data is only reassessed at the time that it is sold to a new owner. At that point,the new assessed
value is reassessed currently available with respect to the actual market value of taxable property and is subject to the limitations
described above.
'In accordance with the timeline ser forth in Assembly Bill 1X 26(as modified by the California Supreme Court on December 29, 2011)all
redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1,2012.
ZTotal Direct Rate is the weighted average of all individual direct rates. Beginning on 2013/14,the Direct Rate no longer includes revenue
generated from the former redevelopment tax rate areas.
Source: Riverside County Assessor 2020/21 Combined Tax Rolls
198
City of Lake Elsinore, California
Assessed Value and Estimated Actual Value
of Taxable Property(continued)
Successor Agency for the Redevelopment Agency
Taxable Total
Less: Assessed Direct Tax
Secured Unsecured Exemptions Value Rate
1,955,649,172 78,927,893 n/a 2,034,577,065 0.52110%
1,880,967,030 110,109,381 n/a 1,991,076,411 0.51923%
1,938,704,040 89,830,332 n/a 2,028,534,372 0.08908%
2,135,333,435 83,968,122 (71,673,963) 2,147,627,594 0.08528%
n/a n/a n/a n/a 0.08349%
n/a n/a n/a n/a 0.08181%
n/a n/a n/a n/a 0.08025%
n/a n/a n/a n/a 0.07862%
n/a n/a n/a n/a 0.07755%
n/a n/a n/a n/a 0.07703%
199
City of Lake Elsinore, California
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year Local Tax Revenue/ Certificates
Ended Agency Allocation Revenue Refunding of
June 30 Revenue Bonds Bonds Bonds Participation
2012 61,835,000 58,580,000 12,975,000 -
2013 83,470,000 56,125,000 12,565,000 -
2014 80,570,000 53,605,000 13,895,000 -
2015 205,598,458 50,450,128 13,295,152 7,859,283
2016 196,377,233 44,262,600 12,717,253 7,644,938
2017 190,449,105 42,490,000 22,449,354 7,420,593
2018 192,410,294 39,848,344 21,676,445 7,191,248
2019 173,355,665 25,467,316 20,795,511 6,946,903
2020 166,796,580 15,590,525 19,889,578 6,697,558
2021 154,747,038 15,013,853 18,958,642 6,438,213
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Source: City Finance Department; California State Department of Finance
200
City of Lake Elsinore, California
Ratios of Outstanding Debt by Type (continued)
Governmental Activities (Continued)
Total Percentage Debt
Notes/ Loans Capitalized Governmental of Personal per
Payable Lease Activities Income Capita
- 133,390,000 12.40% 2,516
- - 152,160,000 13.95% 2,745
- - 148,070,000 13.49% 2,611
- - 277,203,022 25.55% 4,890
- - 261,002,024 22.08% 4,278
- - 262,809,052 22.16% 4,233
- - 261,126,331 22.02% 4,121
- 3,459,380 230,024,775 19.40% 3,654
- 3,403,569 212,377,810 17.91% 3,347
- 3,228,855 198,386,601 16.73% 3,063
201
City of Lake Elsinore,California
Direct and Overlapping Bonded Debt
June 30,2021
2020-21 Assessed Valuation $ 6,922,737,473
City's Share of
Percentage Outstanding Overlapping
Applicable(1) Debt 6/30/21 Debt 6/30/21
OVERLAPPING TAX AND ASSESSMENT DEBT:
DIRECT OVERLAPPING TAX AND ASSESSMENT DEBT
City of Lake Elsinore Community Facilities District No.90-2 100% 3,995,000 $ 3,995,000
City of Lake Elsinore Community Facilities District No.95-1 100% 560,000 560,000
City of Lake Elsinore Community Facilities District No.98-1 100% 11,695,000 11,695,000
City of Lake Elsinore Community Facilities District No.2003-2 I-A A,B,C,D&E 100% 69,340,000 69,340,000
City of Lake Elsinore Community Facilities District No.2004-3 100% 39,385,000 39,385,000
City of Lake Elsinore Community Facilities District No.2005-1 100% 6,730,000 6,730,000
City of Lake Elsinore Community Facilities District No.2005-2 100% 18,935,000 18,935,000
City of Lake Elsinore Community Facilities District No.2005-5 100% 3,465,000 3,465,000
City of Lake Elsinore Community Facilities District No.2005-6 100% 2,495,000 2,495,000
City of Lake Elsinore Community Facilities District No.2006-1 Improvement Areas 100% 42,395,000 42,395,000
City of Lake Elsinore Community Facilities District No.2006-2 100% 5,215,000 5,215,000
City of Lake Elsinore Community Facilities District No.2007-4 100% 2,620,000 2,620,000
City of Lake Elsinore Community Facilities District No.2007-5 100% 1,685,000 1,685,000
City of Lake Elsinore Community Facilities District No.2015-5 100% 2,125,000 2,125,000
City of Lake Elsinore Community Faciliteis District No.2016-2 100% 19,600,000 19,600,000
City of Lake Elsinore Community Faciliteis District No.2019-1 100% 6,610,000 6,610,000
City of Lake Elsinore 1915 Act Bonds 100% 10,390,000 10,390,000
TOTAL DIRECT OVERLAPPING TAX AND ASSESSMENT DEBT 247,240,000
OTHER OVERLAPPING TAX AND ASSESSMENT DEBT
Riverside County Flood Control District,Zone No.4 0.856% 10,260,000 87,826
Metropolitan Water District 0.213% 26,830,000 57,148
Mount San Jacinto Community College District 6.821% 262,750,000 17,922,178
Perris Union High School District 2.775% 237,603,350 6,593,493
Menifee Union School District 4.428% 128,099,720 5,672,256
Perris School District 0.065% 35,696,242 23,203
Lake Elsinore Unified School District CFDs 45.323% 49,955,000 22,641,105
Lake Elsinore Unified School District Community Facilities Districts 100% 69,507,960 69,507,960
Perris Union High School District CFD No.92-1 6.739% 32,690,000 2,202,979
Elsinore Valley Metropolitan Water District CFD No.2003-1 100% 2,761,000 2,761,000
TOTAL OTHER OVERLAPPING TAX AND ASSESSMENT DEBT 127,469,146
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 374,709,146
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
DIRECT GENERAL FUND DEBT
City of Lake Elsinore General Fund Obligation 100% $ 198,386,601 $ 198,386,601
TOTAL DIRECT GENERAL FUND DEBT 198,386,601
OVERLAPPING GENERAL FUND DEBT
Riverside County General Fund Obligations 2.224% $ 717,525,698 15,957,772
Riverside County Pension Obligations 2.224% 881,575,000 19,606,228
Perris Union High School District General Fund Obligations 2.775% 41,063,367 1,139,508
Menifee and Perris School District Certificates of Participation 4.428&0.065% 51,386,771 2,059,001
Western Municipal Water District 4.782% 6,815,211 325,903
TOTAL OVERLAPPING GENERAL FUND DEBT 39,088,412
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 237,475,013
OVERLAPPING TAX INCREMENT DEBT(SUCCESSOR AGENCY): 100.000% $ 12,875,000 $ 12,875,000
Total Direct General Fund Debt $ 198,386,601
Total Gross Overlapping Debt $ 426,672,558
Combined Total Debt(2) $ 625,059,159
Ratios to 2020-21 Assessed Valuation:
Total Direct Debt($197,814,429) 2.87%
Total Overlapping Tax and Assessment Debt 6.16%
Combined Total Debt 9.03%
Ratios to Redevelopment Incremental Valuation($3,155,543,429):
Total Overlapping Tax Increment Debt 0.41%
202
City of Lake Elsinore,California
Direct and Overlapping Bonded Debt
June 30,2021
Direct and Overlapping Bonded Debt(continued)
Notes:
(1)For debt repaid with property taxes,the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
(2)Excludes tax and revenue anticipation notes,enterprise revenue,mortgage revenue and non-bonded capital lease
obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that,when considering the City's ability to issue and repay
long-term debt,the entire debt burden borne by the residents and businesses should be taken into account. However,
this does not impy that every taxpayer is a resident,and therefore repsonsible for repaying debt,of each overlapping
government.
Source:California Municipal Statistics
203
City of Lake Elsinore,California
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2012 2013 2014 2015
Assessed Valuation $ 3,923,526,176 $ 3,834,397,783 $ 4,031,499,407 $ 4,494,905,138
Conversion Percentage 25% 25% 25% 25%
Adjusted Assessed Valuation 980,881,544 958,599,446 1,007,874,852 1,123,726,285
Debt Limit Percentage 15% 15% 15% 15%
Debt Limit 147,132,232 143,789,917 151,181,228 168,558,943
Total Net Debt Applicable
to Limitation - - - -
Legal Debt Margin $ 147,132,232 $ 143,789,917 $ 151,181,228 $ 180,185,586
Total Debt Applicable to the Limit
as a Percentage of Debt Limit 0.0% 0.0% 0.0% 0.0%
The Government Code of the State of California provides for a legal debt limit of 15%of gross assessed value.
However,this provision was enacted when assessed valuation was based upon 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 that was in effect at the time that the legal debt margin
was enacted by the State of California for local governments located within the state.
Sources: HdL Companies and Riverside County Assessor Tax Roll
204
City of Lake Elsinore, California
Legal Debt Margin Information (continued)
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 4,804,948,961 $ 5,212,031,340 $ 5,598,768,413 $ 6,143,510,436 $ 6,552,949,033 $ 6,922,737,473
25% 25% 25% 25% 25% 25%
1,201,237,240 1,303,007,835 1,399,692,103 1,535,877,609 1,638,237,258 1,730,684,368
15% 15% 15% 15% 15% 15%
180,185,586 195,451,175 209,953,815 230,381,641 245,735,589 259,602,655
$ 180,185,586 $ 195,451,175 $ 209,953,815 $ 230,381,641 $ 245,735,589 $ 259,602,655
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
205
City of Lake Elsinore, California
Pledged-Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Successor
Fiscal Year Redevelopment Tax
Ended Tax Increment Debt Service Allocation
June 30 Revenue Principal Interest Coverage Bonds
2012 9,451,004 1,500,000 1,071,681 3.68 58,580,000
2013 10,090,329 2,455,000 1,050,131 2.88 56,125,000
2014 10,864,084 2,520,000 2,333,745 2.24 53,605,000
2015 10,070,883 2,590,000 2,262,351 2.08 51,015,000
2016 12,245,321 2,760,000 2,361,749 2.39 52,770,000
2017 8,891,703 2,945,000 2,149,445 1.75 49,825,000
2018 10,063,122 2,995,000 2,069,501 1.99 57,150,000
2019 11,349,440 15,640,000 2,306,830 0.63 50,770,000
2020 13,699,276 26,340,000 2,661,996 0.47 36,615,000
2021 12,242,307 2,795,000 1,424,147 2.90 12,875,000
Note: Details regarding the City's outstanding debt can be found in Note 8 to the financial statements.
Source: City Finance Department
206
City of Lake Elsinore, California
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal Per Capita
Fiscal Year Income Personal Unemployment
Ended Population (In Thousands) Income Rate
June30 ( 1 ) (2 ) (3 ) (4 )
2012 53,024 1,075,380 20,281 13.2%
2013 55,430 1,090,807 19,679 9.3%
2014 56,718 1,097,663 19,353 8.1%
2015 56,688 1,085,008 19,140 8.8%
2016 61,006 1,182,026 19,375 7.2%
2017 62,092 1,185,907 19,099 6.5%
2018 63,365 1,276,340 20,142 6.0%
2019 62,949 1,360,031 21,605 4.0%
2020 63,453 1,449,105 22,837 3.9%
2021 64,762 1,565,248 24,169 10.1%
Sources:
HDL, Coren&Cone
( 1 )Population: California State Department of Finance
(2, 3 ) Income Data: ESRI -Demographic Estimates are based on the last available Census. Projections
are developed by incorporating all of the prior census data released to date.
(4 ) Unemployment Date: California State Employment Development Department
207
City of Lake Elsinore,California
Principal Employers
Current Year Compared to 2012
2021 2012
Percent of Percent of
Number of Total Number of Total
Employees Employment* Employees Employment*
EMPLOYMENT
Estimated Total Employment 31,300 (1) 17,000 (1)
EMPLOYER
Lake Elsinore Unified School District* 2,524 8.06% - 0.00%
M&M Framing 450 1.44% - 0.00%
Costco Wholesale 312 1.00% - 0.00%
Stater Bros. (3 stores) 328 1.05% - 0.00%
Walmart Superstore#2077 295 0.94% - 0.00%
Lake Elsinore Hotel&Casino 230 0.73% - 0.00%
Riverside County-Department of Public Social Services 179 0.57% - 0.00%
E.V.M.W.D. (Elsinore Valley Municipal Water District) 167 0.53% - 0.00%
The Home Depot** 143 0.46% - 0.00%
City of Lake Elsinore 118 0.38% - 0.00%
Stater Bros. (2 stores) - 0.00% 318 1.87%
Walmart - 0.00% 219 1.29%
Albertson's Inc. - 0.00% 210 2.10%
Costco Wholesale - 0.00% 172 1.01%
E.V.M.W.D. (Elsinore Valley Municipal Water District) - 0.00% 166 0.98%
Target - 0.00% 144 0.85%
The Home Depot** - 0.00% 120 0.71%
Villa Siena Apartments - 0.00% 128 0.75%
Lowe's - 0.00% 121 0.71%
Golden State Concessions - 0.00% 120 0.71%
Total Top 10 Employers 4,746 15.16% 1,718 0.00%
Notes:
(1)Total City Labor Force provided by EDD Labor Force Data.
Source:MuniServices,LLC/Avenu Insights&Analytics
Source:2012,previously published ACFR
Results based on direct correspondence with city's local businesses.
*Includes Certificated,Classified&Admin.
**No response from business,previous year's number applied.
208
City of Lake Elsinore, California
Full-time City Employees, Part-time City Employees,and Elected Officials
by Function
Last Ten Fiscal Years
FUNCTION 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government 24 22 24 20 20 21 22 19 21 -
Community Services' 42 43 47 45 51 61 53 72 59 -
(Includes Public Works)
Community Development 10 14 14 18 20 19 21 28 25 -
General Government - - - - - - - - - 24
Community Services - - - - - - - - - 16
Public Services - - - - - - - - - 31
Launch Pointe Enterprise - - - - - - - - - 17
Internal Services - - - - - - - - - 10
Communication Development - - - - - - - - - 20
Total 76 79 85 83 91 101 96 119 105 118
Note: Police and Fire services are provided by the County of Riverside.
Schedule revised to match function and format from Annual Operating Budget document of Fiscal Year 2020-2021 page 87.
Source: City Finance Department
209
City of Lake Elsinore,California
Operating Indicators
by Function
Last Ten Fiscal Years
Fiscal Year
FUNCTION 2012 2013 2014 2015
Police
Lake Related Boating Enforcement Citations 384 204 425 419
Hazardous Traffic Violations 1,358 2,155 2,848 3,338
DUI Arrests 241 216 197 179
Fire
Calls 3,944 4,554 4,484 4,456
Fire Suppression Equipment 3 4 4 4
Public Works
Centerline Miles of Paved Surface Streets Maintained 174 189 189 189
Centerline Miles of Dirt Surface Streets Maintained 9 9 9 9
Weed Abatement-Lots Cleaned 452 360 414 227
Community Development
Construction Permits Issued 760 909 972 735
Property Value Per Permits(Estimated in 000's) $ 43,381 $ 124,755 $ 121,773 $ 71,664
New Home Building Permits Issued 210 660 626 346
Parks and Recreation
Daily Lake Use Passes Sold 20,702 21,413 20,183 14,996
n/a=not available
Source:City of Lake Elsinore,Various Departments
210
City of Lake Elsinore,California
Operating Indicators by Function(continued)
Fiscal Year
2016 2017 2018 2019 2020 2021
597 134 51 105 203 108
3,711 4,141 2,821 3,445 2,229 2,802
137 140 111 133 204 388
5,110 5,249 5,868 5,923 6,149 5,897
4 3 3 3 3 3
254 254 254 254 254 255
9 9 9 9 9 8
204 116 68 54 176 132
2,022 2,933 3,455 2,174 2,262 2,923
$ 104,923 $ 188,892 $ 195,698 $ 90,379 $ 126,878 $ 138,237
410 449 534 143 253 350
11,427 11,278 14,394 10,319 23,024 27,056
211
City of Lake Elsinore, California
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year
FUNCTION 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police
Stations 1 1 1 1 1 1 1 1 1 1
Fire
Fire Stations 3 4 4 4 4 4 3 3 3 3
Public Works
Street Miles 157 157 157 157 254 254 254 254 254 254
Lake, Parks&Recreation
Parks and River Walk 17 17 17 17 18 18 18 19 20 22
Beaches and
Recreation Facilities 10 10 10 10 10 10 10 10 11 11
Libraries 2 2 2 2 2 2 2 2 2 2
Stadium Amphitheater
Seats 6,600 6,600 6,600 6,600 6,600 6,600 6,600 6,600 6,600 6,600
Lake Surface Acres 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300
Lakeshore Miles 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5
Source: City of Lake Elsinore,Various Departments
213
i
CITY OF LAKE ELSINORE, CALIFORNIA
214
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022
December 29, 2021
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Lake Elsinore, California (the City)
for the year ended June 30, 2021. Professional standards require that we provide you with information
about our responsibilities under generally accepted auditing standards, Government Auditing Standards
and the Uniform Guidance, as well as certain information related to the planned scope and timing of our
audit. We have communicated such information in our letter to you dated April 27, 2021. Professional
standards also require that we communicate to you the following information related to our audit.
Significant Audit Findings and Other Issues
Qualitative Aspects of Significant 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 the notes to the financial statements. No new
accounting policies were adopted and the application of existing policies was not changed during fiscal year
2020-2021. 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 estimate(s) affecting the City of Lake Elsinore’s financial
statements was:
Management’s estimates of its net pension liability and net other post-employment benefits
liability are based on actuarial valuation specialist assumptions. We evaluated the key
factors and assumptions used to develop the net pension liability and net other
post-employment benefits liability in determining that they are reasonable in relation to the
financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Significant Unusual Transactions
Management is responsible for the policies and practices used to account for significant unusual
transactions. No significant unusual transactions have occurred during fiscal year 2020-2021.
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
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 trivial, and communicate them to the appropriate level of management.
These differences are described below. In addition, none of the misstatements detected as a result of our
audit procedures were material, either individually or in the aggregate, to the financial statements taken as
a whole.
Unadjusted Audit Differences
LAIF Fair Market Value Adjustment 209,708$
Cumulative effect (before effect of prior year differences) 209,708
Effect of unadjusted audit difference - prior year -
Cumulative effect (after effect of prior year differences) 209,708$
Current Year Over
(Under) Revenues and
Expenditures/Expenses
and Changes in Fund
Balance/Equity
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.
Circumstances that Affect the Form and Content of the Auditor’s Report
New auditing standards were implemented in fiscal year 2020-2021 related to Statement of Auditing
Standards 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the
Audit of Financial Statements, through Statement of Auditing Standards 140, Supplementary Information
in Relation to the Financial Statements as a Whole. These standards updated the form and content of the
financial statement auditor’s report. The purpose of the change was to present an easier format for users
to understand the results of the audit and management’s responsibilities.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 29, 2021.
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
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 Discussed with Management
We generally discuss a variety of matters, including the significant events or transactions that occurred
during the year, business conditions affecting the City and business plans and strategies that may affect
the risks of material misstatements, the application of accounting principles and auditing standards, with
management each year prior to retention as the City’s auditors. However, these discussions occurred in
the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures the management’s discussion and analysis, the budgetary
comparison schedules for the general fund and low moderate income housing, the schedule of
proportionate share in net pension liability, the schedule of plan contributions, and the schedule of changes
in the total OPEB liability and related ratios 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 combining and individual fund financial statements and schedules 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 section and statistical section, 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.
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for
fiscal year 2020-2021 audit:
GASB Statement No. 84, Fiduciary Activities.
GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement Nos. 14
and 61.
GASB Statement No. 98, The Annual Comprehensive Financial Report.
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
The following GASB pronouncements are effective in the following fiscal years’ audits and should be
reviewed for proper implementation by management:
Fiscal year 2022
GASB Statement No. 87, Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting
for Internal Revenue Code Section 457 Deferred Compensation Plans.
Fiscal year 2023
GASB Statement No. 91, Conduit Debt Obligations.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangement.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements.
Restriction on Use
This information is intended solely for the use of City Council and management of the City of Lake Elsinore
and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Brea, California
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022
INDEPENDENT AUDITORS’ 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
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, 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, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Lake Elsinore, California (the City), as of and for the year ended June 30, 2021, and the related
notes to the financial statements, which collectively comprise the City’s basic financial statements, and
have issued our report thereon dated December 29, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
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
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
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.
Brea, California
December 29, 2021
INDEPENDENT ACCOUNTANTS' REPORT ON AGREED-UPON
PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit
Worksheet No. 6 (or other alternative computation) of the City of Lake Elsinore, California, for the year
ended June 30, 2021. These procedures, which were agreed to by the City of Lake Elsinore and the
League of California Cities (as presented in the publication entitled Agreed-Upon Procedures Applied to
the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed
solely to assist the City of Lake Elsinore in meeting the requirements of Section 1.5 of Article XIII-B of the
California Constitution. The City of Lake Elsinore's management is responsible for the
Appropriations Limit Worksheet No. 6 (or other alternative computation).
This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of these
procedures is solely the responsibility of those parties specified in this report. Consequently, we make no
representation regarding the sufficiency of the procedures described below either for the purpose for
which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations)
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 worksheets 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 No. 6, we multiplied line A, last year's
limit, by line D, ratio of change, and agreed the resulting amount to line E, this year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the current year information presented in the accompanying Appropriations Limit
Worksheet No. 6 to the other worksheets described in No. 1 above.
Finding: No exceptions were noted as a result of our procedures.
4. We compared the prior year appropriations limit presented in the accompanying Appropriations
Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the
prior year.
Finding: No exceptions were noted as a result of our procedures.
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
We were not engaged to and did not perform an audit, the objective of which would be the expression of
an opinion on the accompanying Appropriations Limit Worksheet No. 6. 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 XIIIB Appropriations Limitation Uniform Guidelines.
This report is intended solely for the use of the City of Lake Elsinore, California and should not be used by
those who have not agreed to the procedures and taken responsibility for the sufficiency of the
procedures for their purposes. However, this report is a matter of public record and its distribution is not
limited.
Brea, California
May 25, 2021
CITY OF LAKE ELSINORE
2020-2021
APPROPRIATIONS LIMIT CALCULATION
A. 2019-2020 APPROPRIATIONS LIMIT: $ 101,303,848
B. 2020-2021 CHANGE IN PER CAPITA
PERSONAL INCOME: 3.73%
C. 2020-2021 CHANGE IN POPULATION: 0.47%
D. RATIO OF CHANGE (1.0373 X 1.0047): X 1.0421753
E. 2020-2021 APPROPRIATIONS LIMIT: $ 105,576,368
($101,303,848 X 1.0421753)