Comprehensive Annual Financial Report For The Year Ended

Comprehensive Annual Financial Report

For The Year Ended June 30,2018

City of El Centro

127 5 Main Street

El Centro, CA 92243 Prepared by the Finance Department

City of El Centro, California

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Prepared by the Finance Department

Leticia Salcido, Director

CITY OF EL CENTRO COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2018

TABLE OF CONTENTS

I. INTRODUCTORY SECTION

Letter of Transmittal ....... ............. ........................................................ .................. ....... ..... ... .. ....... 1 Certificate of Achievement for Excellence in Financial Reporting .... .................................... .. ..... 7 Organization Chart ............................................................................................... .... ...................... 8 Principal Officials .......................................... ............................ ........ .. ............. .... .... ................. .... 9

II. FINANCIAL SECTION

A. Independent Auditor's Report .............................. .. .. ....... ..... ................................................ 10 B. Management's Discussion and Analysis ................................... .. ............. ...................... ..... 13 C. Basic Financial Statements:

Government-wide Financial Statements: Statement of Net Position ........ .... ................................................ ................................ 25 Statement of Activities ....... .. ........... ............. ............................................................... 26

Fund Financial Statements: Governmental Funds:

Balance Sheet ........................... ..... .................................... ..... ............ .................. . 27 Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position .......... .. .......... ..... ... ........................................... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances ................ 29 Reconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances of Governmental Funds to the Statement of Activities ........... ... ......... ................... .... ....... ..... .......... ..... ... ... ......................... 30

Proprietary Funds: Statement ofNet Position .... ....................................... : .................. ........................ 31 Statement of Revenues, Expenses, and Changes in Net Position ....... ............ ...... 32 Statement of Cash Flows .............................................................. ............ ........... . 33

Fiduciary Funds: Statement of Fidul:iary Net Position ..................................................................... 34 Statement of Changes in Net Position - Private-Purpose Trust Fund ... ................ 35

Notes to Basic Financial Statements ............................................................ .... ..... ......... ... 37

D. Required Supplementary Information: Schedule of Changes in Net Pension Liability and Related Ratios- City

Miscellaneous Plan ................ ....................... .......... ....................................... .... 101 Schedule of Pension Contributions- City Miscellaneous Plan ......... ............... .... I 02 Schedule of Proportionate Share of Net Pension Liability- City Safety Plan ..... 103 Schedule of Pension Contributions- City Safety Plan ...................................... ... 104 Schedule of Changes in Net Pension Liability and Related Ratios ........... ....... 105

Hospital Plan ....... .. ............................................................................................. I 07 Schedule of Pension Contributions - Hospital Plan ............................................. 1 08 Note to Required Supplementary Information ...................................... ................ 109 General Fund - Schedule of Revenues, Expenditures, and Changes in

Fund Balance - Budget and Actual ... ... ............................ ........... .. ................... 1 I 0


Fiscal Year Ended June 30,2018

TABLE OF CONTENTS

II. FINANCIAL SECTION (Continued)

E. Other Supplemental Iufurmatiun

Nonmajor Governmental Funds .. ........................................................................................ 111

Combining Balance Sheet. ......................................................................................... 116 Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances ..... ............... .............................................. ........ .... .. ..... .... ............ 124 Schedules of Revenues, Expenditures, and Changes in Fund Balances -

Budget and Actual Gas Tax Special Revenue Fund ........ .............. .. ........ .. .......... .............................. 13 I Library Assistance Special Revenue Fund .......................................................... 132 Bus Shelter Special Revenue Fund .............. ...................... ................ .... .. ... .... .... 133 Transportation Article 3 Special Revenue rund .............................. ........ ........... 134 Home Program Special Revenue Fund .............................................. .... .. .. .. .. .. .. . 135 Rental Rehab-HUD Special Revenue Fund .............. ........................ .................. 136 Home Program Income Admin Special Revenue Fund ....................................... 137 Recreation Projects Special Revenue Fund .................. ....................................... 138 Wake Ave Extension Special Revenue Fund ...................................................... 139 Special Events Special Revenue Fund ................................................................ 140 Asset Forfeiture Special Revenue Fund .............................................................. 141 Local Transportation Authority Special Revenue Fund -. .................................... 142 Home Grants Special Revenue Fund ...... .................. .......................................... 143 OTS Grant Special Revenue Fund ...... ............................ .................................... 144 State COPS SLESF Special Revenue Fund ........................................................ 145 Annexation Fees Special Revenue Fund ............................................................. 146 HUD Entitlement Special Revenue Fund .. .. ........................... .. .. .......... ............... 147 CDBG Program Income Special Revenue Fund ................................................. 148 Housing Enabled by Local Partnership Special Revenue Fund .......................... 149 CALHOME Program Special Revenue Fund ..................................................... 150 Development Impact Fee Special Revenue Fund ................................................ 151 FHW A Grants Special Revenue Fund ................................................................ 152 Town Center Lighting and Landscaping Special Revenue Fund ........................ 153 I-8 Imperial Ave Overpass Special Revenue Fund ........................................... .. 154 EDA Revolving Special Revenue rund .............................................................. 155 Police & Fire Operational Special Revenue Fund ................................ .. .... .. ....... 156 Legacy Ranch Lighting and Landscaping District Special Revenue Fund ......... 157 IV Commons Special Revenue Fund .......... ................ .................................. ...... 158 Fire Mitigation Special Revenue Fund ...... ........ .... .... .. .......................... .............. 159 TID Project Special Revenue Fund ................................................. .......... ........... 160

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Fiscal Year Ended June 30,2018

TABLE OF CONTENTS

n. FINANCIAL SECTION (Continued)

E. Other Supplemental Information (Continued)

Nonmajor Governmental Funds (Continued)

Schedules of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual (Continut:d):

Police Grant Special Revenue Fund ................ ............................... .............. .... ... 161 Successor Agency Housing Special Revenue Fund ...... ........ .... .... ...... .... ...... ...... 162 Cooperative Agreement Special Revenue Fund ... ...... .. .. ... ... ..... ................ .... ...... 163 Orange Ave Regional Lift Capital Projects Fund ..... .... ...... ...... ..... ... ... ... ... ......... 164 Park Development Capital Projects Fund .... .. ... .. ..... ...... .. ...... ....... .... ... .. ... .......... 165 Drainage Facility Capital Projects Fund ............. ............................ .... ..... ........ ... 166 Lotus Parallel Capital Projects Fund ........................................... .. ................. .... . 167 riD Facility Crossing Capital Projects Fund ...... ............. ... ............................... .. 168 8111 Street Overpass Bridge Capital Projects Fund .................. .... .. .. .. .. ... ..... ....... .. 169 Bridge/Road Improvement Capital Projects Fund .... ..... .... ... .......... ... ... .... .......... 1 70 Federal Highway Administration Capital Projects Fund .................... .... .... ........ 171 La Brucherie Green Belt Capital Projects Fund ......... .............. .. ...................... ... 172 Colonia-EI Dorado Special Revenue Fund ...... ... .... .... ..... .. ... ..................... .... ... .. 173 LT A Lease Revenue Bonds Capital Projects Fund .... .......... ...... ... .. ...... ............ .. 174 Buena Vista Landscaping and Lighting District Capital Projects Fund .... ..... ..... 175 Road Improvement Capital Projects Fund ............ ...... ... .. .. ... .... ...... .................... 176 2011 C Bonds City Capital Projects Fund ... ... .... ...... ... ..... ..... ......... .. .. ................. 177 2011A & B Projects Capital Projects Fund ........ ..... .... ... ...... ..... .... .. ... ... .... .. .. .. .... 178 L T A Lease Revenue Bonds Debt Service Fund ..... .. ...... .. .... ............. ............ ..... . 179 Financing Authority Debt Service Fund ........ . ....................... ... . ....... . .... 180

Nonmajor Proprietary Funds ......... ..... .... ............. ............................ .... ......... ... ... .... .... ... .... .. 181

Combining Statement ofNet Position ..... ... ..... .. ...... ... ...... ...... ... .. ................ ........... ... 182 Combining Statement of Revenues, Expenses, and Changes in Net Position .... ....... 183 Combining Statement of Cash Flows .............. ..... .............................. .... ..... .... .... ..... . 184

Internal Service Funds .. ................. ..... .... .. .................................. ......... .......... .... ......... .. .... ... 185

Combining Statement of Net Position .... .. ... ... .... ...... .. ...... .............. ........................... 186 Combining Statement of Revenues, Expenses, and Changes in Net Position ........ ... 187 Combining Statement of Cash Flows .... ... ... .. .... .... .... .. ... .... ........................ .......... ... .. 188

111


Fiscal Year Ended June 30, 2018

TABLE OF CONTENTS

II. FINANCIAL SECTION (Continued)

E. Olht:r Supplt:rm:nlal Information (Continued)

Fiduciary Funds ................................................................................................................... 189 Private-Purpose Trust Funds

Combining Statement ofNet Position ...................... ....... ...... .. .. ................................ 190 Combining Statement of Changes in Net Position .................................................... 191

Agency Fund Statement of Changes in Assets and Liabilities ......................................................... 192

III. STATISTICAl. SFCTTON

Statistical Section .................................................... ... .. .. .. ..... ... ..... .. .. ... .. ... .. .. ..... .... .. ... ..... .. .... 193

Financial Trends Information Net Position by Component - 10 Years ................................................................ ........ ...... 194 Changes in Net Position - 10 Years ........................................... ......................................... 195 found Balances of Governmental Funds- 10 Y t:ars ............................................................ 197 Changes in Fund Balances of Governmental Funds - I 0 Years ............................. ........... . 198

Revenue Capacity Information Property Ad Valorem Tax Assessed Values - 10 Years ..................................................... 199

Debt Capacity Information Direct and Overlapping Property Tax Rates- I 0 Years ...................... ...... .... ..................... 200 Principal Property Taxpayers ............................... .................. ............................................. 201 Property Tax Levies and Collections- I 0 Years ................................................................ 202 Ratios of Outstanding Debt by Type - 10 Years ...................................... .... .......... ............. 203 Ratios of General Bonded Debt Outstanding- 1 0 Years ............................. ... .................... 204 Statement of Direct and Overlapping Debt- Current Year ................ .. .............................. 205 Computation of Legal Debt Margin - I 0 Years .................................................................. 206 Pledged-Revenue Coverage- 10 Years ......................................... ....... ............ .................. 207

Demographic and Economic Information Demographic and Economic Statistics- 10 Years .............................................................. 208 Principal Employers ............... ... ............................................... ........................................... 209 Employees by Function (Full Time Equivalents) - I 0 Years .............................................. 210 Construction Activity and Bank Deposits ........................................................................... 211

Operating Information Capital Assets Statistics by runction - 1 0 Years ...... .......................................................... 212 Demands for City Services - 10 Y cars ................................................................................ 213

IV

INTRODUCTORY SECTION

January 28, 2018

To the Honorable Mayor, Members of the Governing Council, and Citizens of the City ofEl Centro:

State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America by licensed certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report of the City ofEI Centro for the fiscal year ended June 30, 2018.

This report consists of management's representations concerning the finances of the City of El Centro. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide reasonable basis for making these representations, management of the City of El Centro has established a comprehensive internal control framework that is designed both to protect the government ' s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City ofEI Centro's financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the City of El Centro' s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City ofEl Centro' s financial statements have been audited hy Moss, Levy & Hartzheim, LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of El Centro for the fiscal year ended June 30, 2018, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of El Centro's financial statements for the fiscal year ended June 30, 2018, are fairly presented in conformity with U.S- GAAP. The independent auditor's report is presented as the first component of the financial section of this report.

The independent audit of the financial statements of the City of El Centro was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on

Finance Department 1275 Main Street, El Centro, CA 92~43 (760) 337-4573 Fax (760) 337-4564

internal controls and legal requirements involving the administration of federal awards. These reports are available in the City ofEI Centro's separately issued Single Audit Report.

U.S - GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of El Centro's MD&A can be found immediately following the report of the independent auditors.

Profile of the Government The City of El Centro is located in the southern part of the State, which is considered to be one of the fastest growth areas in the State. The City currently occupies a land area of approximately 11 square miles and serves a population of approximately 46,315. The City of El Centro is empowered by the State to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing Council.

The City was incorporated under the Laws of the State of California in 1908. However on November 3, 2009 voters approved measure G adopting a City Charter. Under the provisions of the charter, the City of El Centro has full authority over its own municipal affairs including; bidding and contracting procedures; regulation of parks; libraries; and other facilities; certain fees; imposition of taxes; municipal zoning; municipal utilities and municipal election procedures.

The City of El Centro operates under a Council-Manager form of Government. The City Council consists of five members elected by the residents of the City. Council terms are four years, elected in November of even-numbered years. Each November, the City Council selects the Mayor from among its members for a one-year term. The Council is elected on an at large non-partisan basis.

The Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, City Attorney, and the City Clerk. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments.

The City of El Centro provides a full range of services, including police and fire protection; the construction and maintenance of streets and other infrastructure; recreational activities; and water and sewer services. Solid Waste collection and disposal is contracted out. The City of El Centro also is financially accountable for the El Centro Regional Medical Center (Hospital), which is reported within the Proprietary Funds of the City's financial statements. Additional information on the Hospital can be found in Note 1 and other various notes (Note 3, Note 4, Note 6, Note 7, Note 8, Note 9, Note 11, Note 12, Note 16 and Note 19 in the Notes to the Financial Statements and page 106 in the Required Supplementary Information section ofthe financial statements.

The Annual Budget serves as the foundation for the City of El Centro Financial Planning and Control. Prior to June 30 of each year the City Manager submits to the City Council a proposed operating budget for the Fiscal Year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings arc conducted and prior to June 30, the budget is adopted by motion of the City Council. The appropriated budget is prepared by Fund, Function (e.g. Public Safety) and Department (e.g. Police). Department Heads may request transft:rs uf apprupriatiuus within their departmental budgets. Transfers of appropriations between departments, however require the authorization of the City Manager. Any revision that increases the total appropriations of any fund by more than fifty thousand dollars

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($50,000) must be approved by the City Council. The City maintains an encumbrance accounting system of purchase orders and contracts as a means of accomplishing budgetary control. Purchase orders are reviewed to ensure that funds are available and that requests are properly authorized prior to being released to vendors.

Budget-to-actual comparisons are provided in this report for each individual governmental fund, for which an appropriated annual budget has been adopted. for the general fund, this comparison is presented on Page 110 as part of the basic financial statements for the governmental funds.

Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of El Centro operates.

Local Economy The County of Imperial consists of seven cities and an unincorporated area with a countywide population of approximately 190,624. The City of El Centro is the largest City in the County, with a population of approximately 46,315 (per Department of Finance). Among the many attributes that makes Imperial County attractive to both commercial and residential development is the abundance of inexpensive water, energy, and land. Additionally, the County serves as the Gateway to the United States for the City ofMexicali, Mexico, the capital of Baja California. Mexicali has a population in excess of 1,000,000 and a significant number of maquiladoras (A maquiladora is an assembly plant in Mexico, especially one along the border between the United States and Mexico, to which foreign materials and parts are shipped and from which the finished product is returned to the original market). These factors and others resulted in a discernible trend toward significant growth in both residential and commercial development.

The City of El Centro experienced unprecedented growth during the three fiscal years of 2004-05, 2005-06 and 2006-07. The growth happened in both commercial and residential development. A 766,333 square foot regional mall and a two strip malls were built in the City. These three projects helped diversify the City's economy and attracted residents of surrounding cities as well as from Mexicali, Mexico. Some of the major retailers include Macy's, Dillard's, JC Pennney, Sears, BestBuy, Ross, Burlington Coat Factory, Marshall 's, Michael's, Bed & Bath & Beyond, DSW, Kohl's, Kirklands, Ulta, Bev Mo, and others. Some of the restaurants that opened around the new mall are; Olive Garden, Denny's, Johnny Carino's, Starbucks and others. However since then Sears and DSW have closed its El Centro operations.

During these years the commercial development brought a substantial increase in retail opportunities to the City as well as an increase in sales and sales tax revenue. Revenues for the General Fund increased to $27.1 million by fiscal year 2007. The economy slowed down during fiscal year 2008 and severely contracted during fiscal year 2010 as a result of the Great Recession. During the period of economic contraction (FY 2008 to FY 201 0), total revenues for the general fund declined by $4.2 million (15%) to $22.9 million. Sales taxes which is the general fund's major revenue source declined by 22%. Other revenues sources that experienced major declines were building related fees, property taxes and interest earnings.

The General Fund revenues for fiscal year 2018 totaled $27.9 million. This is an increase of $1.8 million from fiscal year 2017. This is the first year where the City's General Fund revenues reached the levels experienced prior to the recession in 2007. Some of the revenue sources that still remain low include building related fees and interest earnings. While revenues have significantly improved, the City still remains cautious as some major retailers have closed their

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operations. Sears, one of the anchors at the regional mall closed its doors in December 2018 and DSW closed its doors in January 2019.

Some of the challenges the City continues to face are the increase in pension and personnel costs. Based on the last Cal-Pers valuation it is estimated that pension costs will increase an additional $2.9 million by fiscal year 2024. Personnel costs are expected to increase approximately $3 million during the same time period. This increase represents approximately 20% of the current budget. The city will continue to seek cost cutting measures in order to produce a balanced budget however it is most likely that the City will have to use its fund balance for this endeavor.

Another challenge the City is facing is the need for new facilities as well as deferred maintenance. The City is in need of a library building to replace the temporary facilities that the City has leased since the old building was deemed unsuitable for occupancy as a result of the 7.2 magnitude earthquake in 2010. The City is in need of a new police station which will meet the need for additional space and new regulatory requirements. Other needs include; new animal shelter; additional parks; improvements to current parks, parking lot resurfacing; IT infrastructure

The City proposed and citizens approved Measure P which increased the retail sales tax by half of one percent (1/2%). The projected revenue from this tax is approximately $5 million per year. This additional tax became effective April 1, 2017 and is to be used to address the major capital ueeus. Some of the capital improvements being considered include police station, library building, parks, animal shelter and other. Working groups have been established to determine the priority of the v<1rious capital projects in order to determine the par amount of sales tax revenue bonds to issue for this endeavor.

The following are some of the economic factors that help contribute to the outlook for financial improvement and stability: • More diverse economy with per capita sales at 128% of national averages • The regional mall and the continued interest for increased commercial development

surrounding the mall and in other areas of the City. In addition to the new businesses that opened last two fiscal years (second Ross store and the specialty grocery store Aldi's, Ashley Home Store, Planet Fitness and Buffalo Wild Wings) other businesses coming to the City include Starbucks #6, Habit Burger and Panera.

• Proximity to the economy of Mexicali, Mexico and the continued inflow of consumers from this country.

Long-Term Financial Planning The fund balance in the general fund as of June 30, 2018 is $22.5 million. Of this amount approximately $3.5 million has been assigned to fund the other post-employment benefit liability (OPEB). The unassigned portion of fund balance is $16 million or 56% of operating expenditures. Approximately $5.7 million of this fund balance is from Measure P funds. The level of fund balance tails within the policy guidelines set by the City for budgetary and planning purposes. In addition to fund balance the City has funded 100% of the $7.4 million actuarial accrued liability for OPEB. This is set up in an irrevocable trust Cal-Pers. The OPEB liability was calculated through an actuarial analysis. This liability is reflected on the Government Wide Financial Statements.

The City's financial condition is monitored on a regular basis. Reports detailing the financial performance of all major funds are presented to the City Council on a periodic basis. Revenue and expenditure trends are closely tracked and analyzed.

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Other revenue sources approved by the City include Landscape/Lighting Districts, Community Facilities Districts and Service Districts. The City has updated various fees, such as development impact fees, to aid in financing the additional services that the City is required to provide. In order to continue to provide a high level of water and wastewater services to existing residents, businesses, and new residences the City will be reviewing its water and wastewater rates in fiscal year 2019. In 2006 the City obtained necessary debt financing for updating and expanding facilities, delivery and collection systems by issuing $65 million in water and wastewater revenue bonds. The City refunded these bonds in fiscal year 2015 to reduce debt service expenses. The estimated net present value savings were approximately $4.7 million.

GASB 75 - OPEB- Other Post Employment Benefit liability Governments have pension obligations to their current and retired employees and these are calculated and accounted for. The City of El Centro provides post-retirement health and dental care benefits, as required by the various collective bargaining agreements for retirees that meet certain criteria. The City of El Centro had previously implemented GASB 45 requirements with the financial statement for fiscal year ended June 30, 2009 and recognized a net OPEB liability related to these benefits. With the implementation of GASB 75, new accounting standards were adopted regarding these OPEB liabilities. An independent actuarial valuation in conformance with these new standards determined the total OPEB liability, total fiduciary net position and net OPEB liability with regards to these benefits. The results of this actuarial valuation can be found in note 14 to the financial statements in this report. The total OPEB liability totals $7.0 million and the City already has $8.6 of fiduciary net position, which consists of prior contributions and interest earned, to address that liability. In addition, the City has assigned amounts previously mentioned as well to fund any unforeseen outcomes.

GASB 54 This is the sixth year the City is required to produce its financial statements in conformity with GASB 54. This new GASB requirement concerns mainly the categories and terminology used to describe the components that compose fund balance. In addition, Statement 54 clarifies how rainyday amounts can be reported by treating stabilization arrangements as a specified purpose. Consequently, amounts constrained to stabilization are to be reported as restricted or committed fund balance in the General Fund if they meet the other criteria for those classifications. As a result the CAFR can no longer list the Reserve for Economic Unknowns separately. The City has a policy that requires a reserve for economic uncertainties equal to at least 10% of annual operating expenditures. The General Fund balance of $22.5 million includes an unassigned balance of $16 million. Of this unassigned amount $2.8 million is for economic uncertainties per the City's policy.

GASB68 This is the fourth year that the City is required to produce its financial statement in conformity with GASB 68. This new GASB requirement concerns mainly the reporting of net pension obligations. The City's net pension liability for each plan is measured as the total pension liability, less the pension plan's fiduciary net position as of June 30, 2018, using an annual actuarial valuation prepared by Cal-Pers for the miscellaneous plan and Bartell & Associates for the safety plan. The net pension liability is $16.7 million for the miscellaneous plan and $31.2 million for the safety plan.

Awards and Acknowledgements The 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 El Centro for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2017. This was

5

the eleventh consecutive year the City of El Centro has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements.

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance and Administration Department. Credit also must be given to the Mayor and the City Council for their support and direction in mainta ining the highest standards of professionalism in the management ofthe City ofEI Centro finances.

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('\

\

Leticia Salcido Director of Finance

I.

' ' , I

Government Finance Officers Association

Certificate of Achievement for Excellence

in Financial Reporting

Presented to

City of El Centro

California

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

June 30, 2017

Executive Director/CEO

7

CXJ

I

DIRECTOR OF COM.MllNITY

SER\r1CES

l ADRIANANAVA

City of El Centro Organizational Chart

CITIZENS OF

ELCENTRO

I J j

CITY COUNCIL CITY CLERK L DIANE C ALD\VELL

I I I I

BOARDS& CITY MANAGER CITY A TTOR."\i"EY COMMISSIONS MARCELA PIEDRA ELIZABETH L. M.I\RTYN

I J I I I I

DIRECTOR OF POLICE FIRE DIRECiOROF DIRECTOR OF PLTJ3LIC WORKS! CHIEF CHIEF FINANCE COMMUNITY ENGINEERING DEVELOPMENT

I I I I I ABRAHA\1 CJ>.MP?S I I BRIAN JOHNSON I I KEN HERBERT I I LETICIA SALcmoJ NORJ\.1A VILLICANA

I

DIRECTOR OF HUMAN

RESOURCES

I JERI BROWNLEE

CITY OF EL CENTRO

Alex Cardenas Council Member

Jason Jackson Council Member

Diane Caldwell City Clerk

Teri Brownlee Abraham Campos Kenneth Herbert Brian Johnson Adriana N ava Norma Villicana

Cheryl V. Walker Mayor

Marcela Piedra City Manager

Efrain Silva Council Member

Edgard Garcia Council Member

Director of Human Resources Director of Public Works/City Engineer Fire Chief Police Chief Director of Community Services Director of Community Development

Prepared By: Leticia Salcido - Director of Finance

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THIS PAGE INTENTIONALLY LEFT BLANK

FINANCIAL SECTION

MOSS, LEVY & HARTZHEIM LLP

PARTNERS RONALD A LEVY, CPA CRAIG A HARTZIIEIM, CPA HADLEY Y HUI, CPA ALEXANDER C HOM, CPA ADAM V GUISE, CPA TRAVIS J HOLE, CPA

CERTIFIED PUBLIC ACCOUNTANTS

COMMERCIAL ACCOUNTING & TAX SERVICES 433 N. CAMDEN DRIVE, SUITE 730 BEVERLY HILLS, CA 90210 TEL: 310.273 .2745 FAX: 310.670.1689 www.mlhcpas.com

Independent Auditor's Report

The Members ofthe City Council of the City of El Centro

El Centro, California

Report on the Financial Statements

GOVERNMENTAL AUDIT SERVICES 5800 HANNUM, SUITE E

CULVER CITY, CA 90230 TEL: 310.670.2745 FAX: 310.670.1689 www.mlhcpas.com

We have audited the accompanying financial statements ofthe governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of El Centro, California (City), as of and for the fiscal year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express opinions on these financia l statements based on our audit. We did not audit the financial statements of the Hospital Fund, which represents 66 .8%, 88.4%, and 50.3%, respectively, of the assets, revenues and net position of Business-type activities. Those statements were audited by other auditors whose repott has been furnished to us , and our opinion, insofar as it relates to the amounts included for the Hospital Fund, is based solely on the repott of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fin anc ial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of express ing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as eva luating the overall presentation of the financial statements.

10 OFFICES: BEVERLY HILLS · CULVER CITY · SANTA MARIA

MFMAFR AMFRIC.AN INSTITUTE OF C.P.A.'S CALIFORNIA SOC IETY OF MUNICIPAL FINANC E OFFICERS · CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, based on our audit and the report of other auditors, 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 El Centro, California, as of June 30, 2018, ::md the resper.tive r.h::1ne;es in fin::1ncial position and, where applicable, cash flows thereof, for the fi scal year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis ofMatter

Change in Accounting Principles

As discussed in note 1 of the notes to the hasic financial statements effective July 1, 2017, the City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions" . Our opinion is not modified with respect to this matter.

Other Matters

Required Supp!ementmy Information

Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis on pages 13 through 24, the Schedule of Revenues Expenditures, and Changes in Fund Balance - Budget to Actual - General Fund, the Note to Required Supplementary Information, the Schedule of Changes in Net OPEB Liability and Related Ratios, the Schedule of OPEB Employer Contributions, the Schedule of Changes in Net Pension Liability and Related Ratios - City Miscellaneous Plan, the Schedule of Pension Contributions City Miscellaneous Plan, the Schedule of Proportionate Share of Net Pension Liability - City Safety Plan, the Schedule of Pension Contributions - City Safety Plan, the Schedule of Proportionate Share of Net Pension Liability - Hospital Plan, the Schedule of Pension Contributions - Hospital Plan on pages I 01 through 110 be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by lhe Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the 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 financial statements, and other knowledge we obtained during our audit of the 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.

Uther Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's financial statP. ments ::~ s a whole. The introductory section, combining nonmajor governmental fund financial statements, nonmajor governmental fund s budgetary comparison schedules, combining nonmajor proprietary fund finant.:ial slalt:lllt:llls, t.:Uiul.Jining internal service fund financial

II

statements, the combining private purpose trust and agency fund financial statements, and the statistical section are presented for purposes of additional analysis and are not required parts of the financial statements. The combining nonmajor governmental fund financial statements, nonmajor governmental funds budgetary comparison schedules, combining nonmajor proprietary fund financial statements, combining internal service fund financial statements, and combining private purpose trust and agency fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and cettain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the 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 information is fairly stated in all material respects in relation to the financial statements as a whole.

The introductory and statistical sections have 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 them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our repo11 dated January 26, 2019, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with cettain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that rep011 is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial repot1ing or on compliance. That report is an integral pat1 of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial rep011ing and compliance

Moss, Levy & Hartzheim, LLP Culver City, California January 26, 2018

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Management's Discussion and Analysis

As management of the City of El Centro, we offer readers of the City of El Centro's financial statements this narrative overview and analysis of the financial activities of the City of El Centro for the fiscal year ended June 30, 2018. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-6 of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars.

Financial Highlights

I. Statement of Net Position and Statement of Activities • The assets of the City of El Centro exceeded its liabilities at the close of the most recent fiscal

year by $215,118. Of this amount, $45,045 may be used to meet the government's ongoing obligations to citizens and creditors.

• The government's total net position increased by $1,928, excluding any prior period adjustments. Through current fiscal year's transaction, the governmental activities decreased the City's net position by $1,564 and the business-type activities increased by $3,492. The increase in business-type activities is due to the decrease in the amount of $1.3 million in the Hospital Enterprise Fund and increase of $5.10 million in the Water and Wastewater Funds

II. Balance Sheet-Governmental Funds • As of the close of the current fiscal year, the City of El Centro's governmental funds reported

combined ending fund balances of $80,541. Approximately 20% or $15,986 is available for spending (Unassigned Fund Balance). See additional discussion in the Financial Analysis of the City's Funds on Pages 25 to 35.

• At the end of the current fiscal year, unassigned fund balance for the general fund was $16,008 or approximately 57 percent of total general fund expenditures.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City of El Centro's basic financial statements. The City of El Centro's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to tht: basic financial statements themselves.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of El Centro's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City of El Centro's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether financial position of the City of El Centro 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 position 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).

Both of the government-wide financial statements distinguish functions of the City of El Centro that are principally supported by taxes and intergovernmental revenues (governmental activities), from other functions that are intended to recover all or a significant portion of their costs through user fees

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and charges (business-type activities). The governmental activities of the City of bl Centro include general government, public safety, community development, public works, economic development, blight elimination, parks, recreation and library. The business-type activities of the City of El Centro include water, sewer (wastewater), solid waste, transit, and a community hospital.

The government-wide financial statements can he fonncl on pages 2.'i-?.n 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 of El Centro, like other state and local govt:rnrnt:nts, ust:s fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All ofthe funds ofthe City ofEl Centro 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 statemt:nts, govt:rnmental fund financial statements focus on nearterm inflows and outflows of spendable resources, as well as on balances of spendable resources that are available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

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 City of El Centro maintains 64 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 for the general fund which is considered to be a major fund . Data from the other 63 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City of El Centro adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.

The governmental fund financial statements can be found on pages 27-30 of this report.

Proprietary Funds. The City of El Centro maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of El Centro uses enterprise funds to account for its water, wastewater, solid waste, and transit operations as well as the ~.:ummunity hospital, El Centro Regional Medical Center. Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City of El Ct::utru uu a cost rt::imburst::mt:ut basis. Tht:: City of El Ct::utru ust::s iutt::mal st::rvict:: funds to account for its fleet of vehicles, workers compensation program, group health insurance, and post employment benefits. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities, in the governmentwide financial statements. Proprietary funds provide the same type of information us the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information tor the water, wastewater, and hospital operations, all of which are considered to be Major Funds of the City ofEl Centro. Conversely, Internal service funds are combined into a single aggregated presentation, in proprietary fund financial statements.

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Individual fund data for the internal service and non-major enterprise funds is provided in the form of combining statements elsewhere in this report. The proprietary fund financial statements can be found on pages 31 -33 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of El Centro's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The fiduciary fund financial statements can be found on page 34-35 of this report.

Notes to the Financial Statements. The notes provide additional information that is essential to the full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 37-100 ofthis report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of El Centro's Schedules of Changes in Net Pension Liability and Related Ratios, Schedules of Pension Contributions, Schedule of Funding Progress for Other Post-employment Benefits, Hospital Fund's Schedule of Changes in Net Pension Liability and Related Ratios, Hospital Fund's Schedule of Pension Contributions, notes to Required Supplementary Information and Schedule of Revenues, Expenditures, and Changes in Fund Balance (Final Budget, Original Budget, and Actual Amount) for the General Fund. Required supplementary information can be found on pages 101 -110 of this report.

The combining statements referred to earlier in connection with non-major governmental funds, proprietary funds, and fiduciary funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 111 -192 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. In the case of the City of El Centro, assets exceeded liabilities by $215 ,118 (see table 1, below) at the close of the most recent fiscal year.

The City of El Centro's net position in the amount of $120,229 (approximately 56 percent) reflects its investment in capital assets (e.g., land, infrastructure, buildings, machinery, and equipment), net of accumulated depreciation, less any related debt used to acquire those assets that is still outstanding. Of this amount $46,139 is related to business type activities with approximately $36,799 in the hospital fund and $9,340 in the water and wastewater funds. The City of El Centro uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of El Centro's investment in its capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other sources, since the capital assets themselves normally are not used to liquidate these liabilities.

An additional portion of the City of El Centro's net position in the amount of $49,845 (approximately 24 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $45,045, may be used to meet the government's ongoing obligations to citizens and creditors. The unrestricted net position for Governmental activities declined from $19 million in fiscal year 2014 to negative $3.5 million in fiscal year 2015. The decline was due to the adjustment for net pension liability as required by GASB 68. The adjustment was for $27.9 million . The unrestricted net position for Governmental activities increased to negative $2 million in fiscal year 2016 and positive $1.2 million in fiscal year 2017. The position for fiscal year 2018 declined to negative 788 as a result of the increase in net pension liability.

At the end of the current fiscal year, the City of El Centro is able to report positive balances in all three categories of net position, for the government as a whole, as well as for its separate businesstype activities.

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Table 1 ·- City of El Centro Net Position June 30,2018 (Thousands)

Current Assets and Other Assets

Capita l Assets

Total Assets

Deterred loss on refunding

City's Contributions subsequent to the measun~mP.nt

Total Deferred Outflow of Resources

Current and Other Liabilities

Long-term Liab ilities

Total Liabilities

Differences between projected and actual earnings

on pension plan investments

Total Deferred Inflow of Resources

Net Position:

Net investment in Capital A~sets

Restricted

Unrestricted

Total Net Position

Governmental

Activities

2018 2017 101,984

79,544 181,528

lS,SO'\

11,411

71,710 83,121

999

102,244 82,194

184,438

15,995

13,545

66,023 79,568

3,906

74,090 75,890

39,609 39,897 (788) 1,172

112,911 116,959

lfi

Business-type

Activities

2018 2017 188,914

154,113 343,027

3,991 1?,7/fi

1G,717

25,021

232,319 257,340

197

197

46,139

10,236 45,832

102,207

123,927

134,710 258,637

4,223 1n,?qn

14,513

26,809

146,404 173,213

1,221

1,221

51,056 6,384

41,275

98,715

Tota l

2018 2017 290,898

233,657 524,555

3,991 ?R, nq

32,220

36,432 304,029

340,461

1,196

1,196

226,171 216,904

443,075

4,223

76,285

30,508

40,354

212,427 252,781

5,127

5,127

120,229 126,946

49,845 46,281 45,044 42,447

215,118 215,674

As shown in Table 2 (below), the City of El Centro's total Net Position increased by $1,928, whi le Governmental Activities Net Position decreased by $1,564.

Table 2 - City of El Ct:nlro Changes in Net Position For the Fiscal Year Ended June 30,2018 (Thousands)

Governmenta l Business-type

Activities Activities

2018 2017 2018 2017

Revenues:

Program Revenues:

Charges for Services 2,021 1,666 177,398 151,378

Operating Grants & Contr ibutions 5,039 3,076 476 284

Capita l Grants & Contributions 4,953 5,963 2,339 -

General Revenues:

Property Tax 3,635 3,274 - -Sa les Tax 17,732 12,864 - -Motor Vehicle in Lieu of Taxes 4,252 4,096 - -Investment Earnings 111 202 1,329 560

Other 2,240 2,473 214 97

Total Revenues 39,983 33,614 181,756 152,319

Expenses:

Genera l Government 4,908 3,260 - -

Public Protection 19,407 16,549 -Community Development 5,962 5,045 - -Publ ic Works 5,858 4,375 - -Parks and Recreation 4,417 4,354 - -Interest on Long-Term Liabilities 995 1,036 - -

Water - - 8,663 8,085

Wastewater - - 8,147 7,744

Hospital - - 159,295 143,496

Other - 2,159 1,855

Total Expenses 41,547 34,619 178,264 161,180

Excess (Deficiency) before transfers (1,564) (1,005) 3,492 (8,861)

Transfers - - -

Increase (Decrease) in Net Position (1,564) (1,005) 3,492 (8,861)

Net Pos ition- Beginning of Fisca l Year 116,959 117,964 98,715 107,049

Prior Period Adjustments (2,483) - - 527

Net Position- Beginning of Fisca l Year (restated) 114,475 117,964 98,715 107,576

Net Position- End of Fiscal Year 112,911 116,959 102,207 98,715

Governmental Activities

Tota l

2018 2017

179,419 153,044

5,515 3,360

7,292 5,963

3,635 3,274

17,732 12,864

4,252 4,096

1,440 762

2,454 2,570

221,739 185,933

4,908 3,260

19,407 16,549

5,962 5,045

5,858 4,375

4,417 4,354

995 1,036

8,663 8,085

8,147 7,744

159,295 143,496

2,159 1,855

219,811 195,799

1,928 (9,866)

-

1,928 (9,866)

215,674 225,013

(2,483) 527

213,191 225,540

215,119 215,674

The change in Net Position for Governmental Activities was a decrease of $1,564 for the fiscal year ended June 30, 2018. The following were the key elements in the change in net position:

• Total revenues and transfers increased 19 percent to $39,983. Expenses increased $6.9 million or 20 percent to $41 ,547.

• Total revenues and transfers decreased from previous year due to the following decreases and increases:

o The increases in revenues from the prevtous year were primarily due to the following reasons;

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I. Gas Tax revenues$ 59 2. Grant funding in the following funds; Police Grants $890, OTS Grant $36,

State COPS Grant $11, State Grant $31, HUD Entitlement Federal Funding $171

3. General fund in the following areas; Sales Tax $4,869, Motor Vehicle License Fees $157, Property Taxes $376, Document Tax $33 , Charges Current Services $184, Transient Occupancy Tax $194. License & Permits $153, Dispatch Svc. $33, Post Reimbursement $28, Federal Grants $21

4. Interest Revenue $14 7 5. Development Impact Fees $258 6. ICTC revenue $66

u The tb:rease in revenues from the previous year were primarily due to the following reasons;

1. General Fund in the following areas; Other Income $57, Court Fines $14, Other Agencies $23, Housing Authority $1, Interest Income $118

2. Grant funding in the following fund; Federal Highway Admin. $1,302 3. Special Events - Contributions $5 4. Asset Forfeiture $6 5. LTA revenue $238 6. FEMA Funding $185 7. Legacy, Buena Vista & Town Center L&LD Property Taxes $16

• Total Expenses increased from previous years due to the following decreases and increases: o The decreases in expenses from the previous year were primarily due to the

following reason: 1. General Fund Professional Fees $289 2. General Fund Liabi lity lns. $93 3. State COPS Grant $4 4. Home Program Income $5 5. Special Events $3 6. Asset Forfeiture $20 7. General Debt Service, decline in interest expense $44 8. Financing Authority decline in interest expense $13

o The increase in expenses from the previous year was primarily due to the following reasons;

1. Grant funding in the following funds; Home Grant $3 , OTS Grant $50, Parks Grant $31 , HUD Entitlement Federal Funding $2, Police Grants $57

2. Home Program Income $5 3. Traffic Safety $1 4. Financing Authority decline in interest expense $232 5. CDBG Program Income $15 6 . Bus Shelter expenses $78 7. Legacy, Buena Vista, Town Center L & LD $20 8. General Fund Salaries & Benefits $87 9. Ueneral Fund Other Expenses $2,431

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Expenses and Program Revenues-Governmental Activities (Amounts expressed In Thousands)

25000 -r--- - - ------- -

20000 -t-------

15000 -t-------

1 0000 -t------'----:---

5000

0 General Public Safety Public Works Park & Community Interest on

Government Recreation Development Long-Term Liab_

Revenues and Transfers by Source-Governmental Activities

Transient Occupancy Taxes

5%

Business-type activities

Other

Property Taxes 9%

Charges for Services

5%

Oper<:~li11y Gr<:~rr ls and Contributions

13%

Capital Grants and Contributions

12%

ORevenue

• Expenses

The Net Position for business-type activities increased by $3,492. In fiscal year 2018 revenues increased by $29,438 or 19 percent. Expenses increased by $17,084 or 11 percent.

• Total revenues increased from previous year due to the following changes: 1. increase - Charges for services $26,020 2. increase- Capital grants & contributions $2,339 3. increase - Operating grants & contributions $92 4. increase - Investment earnings $768 5. Increase - other $118

• Total expenses increased from previous year due to the following changes: 1. Increase in Hospital enterprise fund personnel services $7,297 2. Increase in Hospital enterprise fund supplies & services $4,390 3. Increase in Hospital enterprise fund interest and other non-operating expense

$3,870

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Expenses and Program Revenues- Business-type Activities (Amounts expressed in Thousands)

180000

160000

140000

120000

100000

80000

60000

40000

20000

0 W ater W astewater Hospital Other

Revenues by Sources - Business-type Activities

Other Revenue 0.12%

Unrestricted Investment

Earnings 0.73%

Operating Grants and

Contributions 0.26% Capital Grants &

Contributions 1.29%

Charges for Service 97.60%

Revenues

•Expenses

There are three major proprietary funds. The major funds are the following; water fund, wastewater fund and the hospital fund. The net position for each of these funds changed as follows: the water fund increased by $1,416 to $24,822 fo r an increase of 6.05%. The wastewater fund increased from $22,242 to $25,911 or 16.50%. The Hospital 's net position decreased from $52,751 to $5 1,455 or 2.45%.

Financial Analysis of the Government's Funds As noted earlier, the City of El Centro uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds. The focus of the City of El Centro'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 of El Centro ' s financing requirements. In particular, 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 of El Centro's governmental funds reported combined ending fund balances of $80,541, an increase of $1,865 in comparison with the prior fiscal year. Approximately 20% of the total ending fund balance in the amount or $ 15,987 constitutes

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unassigned fund balance, which is available for spending at the government's discretion. The remainder of the fund balance is restricted, non-spendable, committed, or assigned.

The general fund is the chief operating fund of the City of El Centro. At the end of the current fiscal year, unassigned fund balance in the general fund was $16 million and the amount of assigned fund balance for other post-employment benefit liability is $5 million (GASB 75 requires the recording of the net OPEB liability on the government wide financial statements) . Total fund balance as of June 30, 2018 was $22.5 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 fund balance represents 57 percent of total general fund expenditures, while total fund balance represents 79 percent of the total general fund expenditures.

Significant factors related to the revenue and expenditures of the general fund for the current fiscal year are as follows:

• Revenues for the general fund totaled $32,084, which was an increase of $5,832 or approximately 22 percent over the prior fiscal year.

• Taxes increased by $5.5 million or 29.6% from last year. The increase is primarily from higher sales tax revenues ($4,252) related to Measure P which increased the sales tax rate by half of one percent effective Apri l 1, 2017. Other tax increases included sales tax non measure P $616 increase in property taxes $376, increase in business license $20, increase in transient occupancy tax $195 and increase in franchise cab le $18.

• Intergovernmental revenues increased by $214 due to the following; increase in motor vehicle license fees $156, increase in dispatch revenue $33, increase in dispatch reimbursement 28.

• Charges for services increased by $236 due to the following: engineering fees $102, plan check fees $48, environmental impact fees $103, decline recreation fees $7, decline police department fees $9.

• Expenditures for the general fund totaled $28,505. This is an increase of $2,205 or approximately 8 percent over the prior fiscal year. General government increased by $728, Public Safety increased by $50, Public Works increased by $69, Parks & Recreation increased by $17, Community Development increased by $35, and capital purch~ses increased by $ 1,23 7.

Proprietary Funds The City of El Centro's proprietary fimds provide the same type of information found m the government-wide financial statements, but in more detail.

Net position of the proprietary (enterprise) funds at the end of the fiscal year amounted to $102,207. This amounts to an increase in net position for a ll enterprise funds in the amount of $3,492. Other factors concerning the finances of these funds have already been addressed in the discussion of the City of El Centro's business-type activities.

General Fund Budgetary Highlights There were no revisions to the original appropnat10ns approved by the City Council. Actual expenditures for the fiscal year in the amount of $28,505 were $2,923 (9%) below the final budgeted amounts. Expenditures were lower than the final budgeted amount for the following reasons: lower capital expenses for public works ($3,586) mainly from continuing the Cruickshank Landfi ll cleanup project to fiscal year 20 19, lower salary expense due to vacant positions ($1 ,106) and higher expenditures in supplies & services $755, higher transfer out for supplemental pension trust $460 and lower service credits $554.

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Capital Asset and Debt Administration As of June 10, 20 1 R the City's investment in capital assets for its governmental and business-type activities amounted to $230,287 (net of accumulated depreciation). The investments in capital assets are comprised of land, building and improvements, infrastructure, vehicles, furniture and equipment, and construction in progress. The City, accord ing to GASB 34 gu idelines has e lected, retroactively, to include all infrastructure assets dating back to 1980.

Major changes in capital asset during the current fiscal year included the following: • Park improvements $ 183 (Conrad Harrison Youth Center, Community Center) • Pub lic saft:ly vt:hiclt: acquisition of $192 • Street improvements of $5,704 • Park & Recreation eCJnipment $6 • Office machines and software $118 • Public safety equ ipment 1,642 • Water and Wastewater system vehicles $42, improvements $7,238 and equipment

totaling $525

Land

Table 3- City of El Centro's Capital Assets (Net of Accumulalt:d Depreciation)

June 30,2018 (Thousands)

Governmental Business-Type

Activities Activities

2,346 1,776

Building & Improvements 48,291 94,629

Infrastructure 21,287

Vehicles 899 435

Furniture & Equipment 2,929 15,972

Construction in Progress 3,792 37,930

Total 79,544 150,742

Total

4,122

142,920

21,287

1,334

18,901

41,722

230,286

Additional information on the City of El Centro's capital assets can be found in Note 6 on pages 58-59 ofthis report.

Long-Term Debt

At the end of the current fiscal year, the City had total long-term debt outstanding of $302,4 72. The composition of long-term debt is outlined in Table-4 below.

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Table 4- The City's Outstanding Debt June 30, 2018 (Thousands)

Governmental Business-Type

Outstanding Debt Activities Activities Totals

Advances from Successor Agency 10,265 - 10,265

Revenue Bonds and Insta llment Sa les, Net 16,849 174,214 191,063

Capita l Leases - 5,966 5,966

Note Payab le - - -Other Post-Employment Benefits (1,558 ) - (1,558)

Net Pension Liabil ity 42,459 51,643 94,102

Compensated Absences 2,138 496 2,634

Tota l 70, 153 232,319 302,472

The majority of the long-term debt is comprised as follows: • Hospital Revenue Bonds in the amount of $115,050, net of unamortized

discount. El Centro Regional Medical Center issued $125,000 in Hospital Revenue Refunding Bonds in 20 18. The proceeds are being used to finance the construction and equipping of the Medical Center's expansion project and refinance the bond series 20 15.

• Installment loan with CIEDB in the amount of $1,674. The City of El Centro obtained an installment loan from CIEDB in 2003 for water and wastewater improvements in the amount of $5.6 mi ll ion.

• Advance from successor agency in the amount of $1 0,264, including unamortized premiums, due to issuance of the 2011 successor bonds series C

• Revenue Bonds in the amount of $1 0,931 , net of unamortized discount. The City of El Centro issued $14,740 in revenue bonds in 2009 for transportation re lated improvements .

• Revenue Bonds in the amount of $5,918, net of unamortized discount. TheEl Centro Financing Authority issued the Revenue Bonds Series 2011 in the amount of $11,095 . The bonds were issued to finance the acquisition of the Redevelopment Agency of the City of El Centro, El Centro Redevelopment Project Tax Allocation Bonds Series 2011 C.

• Revenue Bonds in the amount of $5,520, net of unamortized discount. The City of El Centro issued $7 .8 million in revenue bonds in 2012 to refund the 1997 wastewater revenue bonds.

• Revenue Bonds in the amount of $52 million, including unamortized premiums. The City of El Centro issued $52.5 million in revenue bonds in 2014 to refund all the outstanding portion of the 2006 Series A water/wastewater revenue bonds. The original bonds were issued for the construction of a new water treatment plant and wastewater plant improvements.

• Net pension liabi lity for the Governmental Activities of $42,459 and for the Business Type Activities of $51,643.

• Net OPEB asset for the Governmental Activities of$1,558.

Additional information on the City of El Centro's long-term debt can be found in Note 8, on pages 60-69 of this report. Additional information on the City of El Centro's Net Pension Liability can be found in Note 15, on pages 81-87 and RSI on pages 101-110. Additional information on the City's Net OPEB Asset can be found in Note 14 and RSI on pages 105-106.

Economic Factors During fiscal years 2004 to 2007 the City of El Centro experienced unprecedented growth in both commercial and residential development. It was during this time that a regional mall with 766,333

23

square feet of shopping opportunities and a strip mall were built in the City. These two projects helped diversifY the City's economy and attracted residents of surrounding cities as well as from Mexicali, Mexico. Mexicali, Mexico is the capital of Baja California and has a population in excess of I million and a significant number of maquiladoras. A maquiladora is an assembly plant in Mexico, especially one along the border between the United States and Mexico, to which foreign materials and parts are shipped and from which the finished product is returned to the original market.

The commercial development substantially increased the retail opportunities in the City and increased sales and sales tax revenue during these years. The economy slowed down during fiscal year 2008 and severely contracted during fiscal year 20 I 0. General Fund revenues declined from $27.1 million in 2007 to $22.9 in fiscal year 2010. The City developed various cost cutting measures which combined with a strong fund balance allowed the City to sail the recession without the need for lay-offs or furloughs.

The economy improved and allowed the City's revenues to increase. Revenues for the General found increased from $26,113 in fiscal year 20 17 to $27,897 in fiscal year 2018. In addition to these revenues the City received an additional $5.2 million from the incremental half percent sales tax rate approved by our Citizens and which became effective April 1, 2017. This incremental tax revenue is designated for major capital facilities such as a police station and library building (The City's old library building was demolished as a result ofthe 7.2 magnitude earthquake in 2010 that deemed it unsuitable for occupancy and the current police station is outdated and docs not meet the requirements to accommodate growth and new regulations). Plans are underway to bond the future revenue stream from this incremental tax. Any revenues generated prior to the bond issuance are being to address the urgent capital needs. The City established working groups to review major capital needs in all divisions within the General Fund. Priorities will be established in order to determine which capital projects to address from the bond proceeds and remaining ongoing revenues.

The factors which will contribute to the local economy include the following: Continued interest in commercial development which has also attracted new restaurants and hotels to the City, plans for new residential development (one such development will begin construction in fiscal year 20 19), more. diverse economy with per capita sales at 128% of national a\ferages, the regional mall, proximity to the economy of Mexicali, Mexico and the continued inflow of consumers from that country. Some of the factors that may have a negative effect on local revenues are the closure of major retailers such as Sears and DSW.

The City will continue to position its finances in a manner that will allow it to meet the City's strategic goals and objectives and to accomplish this within the parameters allowed by the economy. The City will continue to fund reserves and enforce revenue enhancement and cost containment measures.

Requests for Information This financial report is designed to provide a general overview ofthe City ofEl Centro ' s finances for a ll 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 Office ofthe Director of Finance, 1275 Main Street, City ofEl Centro, California, 92243.

24

CITY OF EL CENTRO Statement of Net Position

June 30, 20 18

Governmenta l Bus in ess-Type Activities Act ivities Tota l

Assets:

Cash and Investments s 54,885,866 s 71,690,593 s 126,576,459 Restricted Assets: Cash and Investments I ,500,000 73,031,170 74,531,170 Cash and Investments with Fiscal Agent 19,971,973 13,086,669 33,058,641

Receivables (net of allowances for uncollectibles)

Accounts 258,883 22,322,800 22,581,683 Taxes 2,636,927 2,636,927 Interest I ,492,640 34,21 I 1,526,851 Grants 1,054,749 2,054,749 Notes 16,866,214 102,242 16,968,456 Other 513,539 I ,560,4 19 2,073,958

Internal Balances 185,830 (I 85,830) Due from Third-Party Payors 3,139,853 3,139,853 Inventories I ,879,526 1,879,526 Net OPEB Asset 1,557,604 I ,557,604 Prepaid Items 1,989,811 1,989,811 Investment in Joint Venture 262,595 262,595 Land Held for Resale 59,089 59,089 Cap ital Assets Not Bei ng Depreciated 6, I 38,499 39,706,677 45,845,176 Capital Assets, Net of Accumulated Depreciation 73,405,958 I 1 I ,035,575 I 84,44 I ,533 Goodwi ll 3,370,409 3,370,409

Total Assets I 8 I ,527,771 343,026,720 524,554,491

Deferred Outflow of Resources: Deferred Loss on Debt Refunding 3,991,394 3,991,394 OPEB related 306, I 83 306, I 83 Pension related 15,197,043 12,726,099 27,923,142

Total Deferred Out now of Resources 15,503,226 16,7 17,493 32,220,719

Liab ilities:

Accounts Payable 3,036,573 16,445,138 19,481,711

Salaries/Benefits Payable 739, !58 7,815,192 8,554,350

Interest Payable 277,554 574,721 852,275

Unearned Revenue 189,436 18,350 207,786 Deposits 7,167,925 166,887 7,334,8 I ~

Non-Current Liabi lities: Due Within One Year 2,276,211 5,478,068 7,754,279

Due in More Than One Year 69,433,998 226,84 1,3 11 296,175,309

Total Liabilities 83,120,855 257,339,667 340,460,522

Deferred Inflow of Resources:

OPEB related 70,594 70,594

Pension related 928,324 197,479 I, 125,803

Total Deferred Inn ow of Resources 998,918 197,479 I, 196,397

Net Position:

Net Investment in Capi tal Assets 74,090, 179 46,138,956 120,229,135

Restricted for:

Housing 5,222,205 5,222,205

Special Projects

Debt Service 8,377,691 10,235,872 18,613,563

Community Development 15,752, 165 15,752,165

Asset Forfeiture 156,990 156,990

Pub lic Safety 982,859 982,859

Street and Roads 7,233,853 7,233,853

Pension Plan I ,500,000 I ,500,000

Landscaping 382,887 382,887

Unrestricted (787 ,605) 45,832 ,239 45,044,634

To1al Net Position s 11 2,91 1,214 s I 02,207,067 s 215, 11 8,29 1

The notes to the financial statements are an integral part of this statement 25

CITY OF EL CENTRO Statement of Activities

F·Jr the Fiscal Year Ended J une 30,201 8

Program Revenue;; Net (Expenses) ol.cvenues and Changes in ~et Position Operating Capi tal l3usincs.s-

Charges for Gmnts and Gr.wts and Go\·Crnmcntal Type Func tions ~enses Services Contributions Contributions Activit ies Activit ies Total

Primary :.:;ovcr:-tmeut: Gover.uncr.tal Activities:

Genera: Government $ 4,907,578 $ 6~0,324 $ s $ (4,277,254 ) $ s (4,27/,254 ) Public Proteci"on 19,407,063 4~9.794 1,568,979 ( 17,408 ,290 ) (17 ,408,290) Com:nunity Dcvelcpmenl 5,961,507 776,338 1,4 19,635 369,274 (3,396,260 ) (3,396,260) Public 'Norks 5,858,267 15,205 2,030,926 4,525,562 713,426 71 ~ .426

Parks a1d Recreation 4,417,407 1f9,678 19,529 5g.232 (4, 169,968) (4 , 169,968) Interest on Lo ng-Tmr Liabilities 995,!59 (995 , I 59) (995, 159)

Total Governi:Jental Activities 41,546,98 I 2.0~ !,339 5,039,069 4,953,068 f29,533 ,505) ___ (29,533,505)

Busine~s-Type Act:vit :es: Water 8,663,249 8,91:9,2 I 2 701,519 I ,007,482 1,007,482 Wastewater 8,146,616 9,71:4,887 !,637,675 3,255,946 3,255,946 Hospi·.al 159,294,906 156,8(1,391 476,362 (2,0 17, 153) (2,017,153) Transi! 273,540 (273,540) (27J,540) Solid Waste 1,886,245 1,8('2,502 (23,743) (23,743) Tot~ I Business-Ty:>e Activities 178,264,556 177,3S7,992 476,362 2,339,194 1,948,992 1,948,992

Total Primary Goverr:ment s 219,811,537 s 179,419,331 $ 5,515,431 $ 7,292,262 (29,533 ,505) !,948,992 ___ (27,584,513)

N Q)

Gener.1l Revenues:

Taxes:

Property Taxes 3,634 ,531 3,63L,53J

Sales Taxes 17,732,123 17,732,123

Transient Occupancy Taxes 1,861,737 1,86 1,737

Franchise Taxes 298,492 298,492

Other Taxes 198 ,535 I%,535

Motor Vehicle in Lieu, unrestricted 4,252,437 4,252,437 Investment Earnings I !0,914 1,328,849 I ,439,763 Miscellaneous Reven"e 95, 107 95,!07

Transfers (214,368 ) 2 JL,368 Total General Revenues 27,969,508 I ,543,217 29,5 !2,725

Change in Net Position ( I ,563,997) 3,492,209 I ,928,2 12

Net Position - Beginning of Fiscal Year 116,958 ,508 98,71 L,8 58 2. 5,67 3,366

Prior Period Adjustments (2,483,287) (2,4S3,287)

Net Position - Beginning of Fiscal Year (restated) 11 4,475,221 98,714,858 2 l 3,190 ,07~

Net Position - End of Fiscal Year s 112,911,224 $ I 02,207,067 $ 2 : 5,118,291

The notes to the financial statements are an integral part of this statement

CITY OF EL CENTRO Balance Sheet

Governmental Funds

June 30, 2018

Non major

Governmental General Funds

Assets:

Cash and Investments $ 19,165,2 17 $ 27,886,029 Receivables (Net of Allowances for Uncollectible):

Accounts 258,883 Ta-xes 2,636,927

Interest 19,325 36,221 Grants 2,054,749

Notes 16,866,214

Other 477,956 35,583

Due from Other Funds 2,051,4 17

Restricted Assets:

Cash and Investments 1,500,000

Cash and Investments with Fiscal Agent 19,971,973

Other Assets:

Land Held for Resale 59,089

Tota l Assets $ 26,109,725 $ 66,909,858

Liabi lities and Fund Balances:

Liabilities:

Accounts Payable $ 1,745,387 $ 775,968

Salaries/Benefits Payable 729,255 4,545

Unearned Revenue 189,436

Deposits 917,998 6,249,927

Due to Other Funds I ,865,587

Total Liabilities 3,582,076 8,896,027

fund Balances:

Nonspendab le 6,~36,080

Restricted 1,500,000 49,866,098

Co mmitted 1,433,442

Assigned 5,019,337

Unassigned 16,008,312 (21,789)

Total Fund Balances 22,527,M9 58,013,831

Total L iab il ities and fund Balances $ 26, I 09,725 $ 66,909,858

The notes to the financia l statements are an integral part of this statement 27

Total Governmental

Funds

$ 47,051,246

258,883

2,636,927

55,546

2,054,749

16,866,214

513,539

2,051,417

1,500,000

!9,971 ,973

59,089

$ 93,0 19,583

$ 2,521,355

733,800

189,436

7, 167,925

1,865,587

12,478, I 03

6,736,080

51,366,098

1,433,442

5,0 19,337

15,986,523

80,541 ,4RO

$ 93,019,583

CITY OF EL CENTRO

Reconciliation of the Governme nta l Funds Balance Sheet

to the Statement of Net Position

June 30, 20 18

Total fund ba lances- governmenta l funds

In governmental funds, only current assets arc reported. In the statement of net position, all nss~ts are reported , including cap ital assets and accumulated depreciation.

Capital assets at historical cos t Accumulated deprec iation

$ 206,294,586 (1 26,750, 129)

In governmentul funds, certain aoorued interc3t rccc ivoble3 on no tc5 receivable '" " 11u l '"'<t il<tltl t: lu pay fu1 current period ~xpendi lu res and, therefo re, arc not reported in the governmental funds.

In governmental fulllh , only current liabi li ties are reported. In the statement of net position, al l liab il ities, including long-term liabi lities, arc reported. Long-term liabilities re lating to governmental activities cons ist of:

Advances from Successor Agency (including premium) Revenue bonds (net of origina l issue discount) Lease revenue bonds (net of original issue discount) Net pension liabi li ty Othe r post-employment henefits Compensated absences payable

$ (I 0,264,369)

(5,9 18,30 I) ( I 0,930,752) (4 2, 118,49 1)

1,557,60•1 (2,137 ,749)

Deferred outflows and inflows of resources re lating to pensions and OPEB: In governmental funds, deferred outflows and inflows of resources relating to pensions ure not reported because they arc app l icabl~; lu futut~ iJ~L iutls. In the statement of net position, deferred out flows nnd inflows of resources relating to pensions <tllll OPEB are reported.

Ci ty's pension conlributions subsequent to the measurement date

Deferred outflow - pension related

Deferred inflow- pension re lated

Deferred outflow- OPEB related

Deferred in flow - OPEB related

Accrued interest payable from the current portion of interest due on long- tcnn debt has not been reported in the governmental funds.

Internal service funds are used by management to chnrgr. th r. r.n't s of certain act ivities, such as se lt: insurancc, to individua l funds. The assets and liab il iti es of the internal service funds must be added to the statement of net position.

Total net posi tio n - govcrnmcn tal nc tivi tics

The notes to the fina ncial statements are an integral part of thi s statement 28

$

$

80,54 1,480

79,544 ,4 57

1,427,049

(69,812 ,058)

4,736,905

10,35 1,995

(925 ,552)

306, 183

(70,594)

(277,554)

7.088,9 13

112,9 11,224

CITY OF EL CENTRO Statement of Revenues, Expenditures, and Changes in Fund Balances

Governmental Funds

For the Fiscal Year Ended June 30, 2018

Revenues

Taxes

Licenses and Permits

Intergovernmental

Charges for Services

F ines and Forfeitures

Interest

Other

Total Revenues

Expenditures

Current

General Government

Public Safety

Public Works

Parks and Recreation

Community Development

Capital Outlay

Debt Service

Principal

Interest and Fiscal Charges

Total Expenditures

Excess (Deficiency) of Revenues over (under) Expenditures

Other Financing Sources (Uses): Transfers In

Transfers Out

Total Other Financing Sources (Uses)

Net Changes in Fund Balances

Fund Balances- Beginning of Fiscal Year

Fund Balances- End of Fiscal Year

General

$ 23,946,816

423,868

5,679,992

848,953

76,671

1,108,095

32,084,395

4,007,539

16,016,794

I ,334,529

3,181,183

1,809,277

2,155,606

28,504,928

3,579,467

2,421,273

(1,714,368)

706,905

4,286,372

18,24 1,277

$ 22,527,649

Non major

Governmental

Funds

$ 18,695

6,233,172

462,816

11,279

727,513

154,431

7,607,906

243,5 15

141 ,268

35,0 II 447,080

5,945,773

I, 195,000

1,099,410

9,107,057

(1,499,151)

1,307,603

(2,228,876)

(921 ,273)

(2,420,424)

60,434,255

$ 58,013,831

The notes to the financial statements are an integra l part of this statement 29

Total Governmental

Funds

$ 23,965,511

423,868

11,913,164

1,3 11 ,769 87,950

727,513

1,262,526

39,692,301

4,007,539

16,260,309

1,475,797

3,216, 194

2,256,357

8,101,379

1,195,000

1,099,410

37,611,985

2,080,3 16

3,728,876

(3,943,244)

(214,368)

1,865,948

78,675,532

$ 80,541,480

CITY OF EL CENTRO Reconciliation of the Statement of Revenues, Ex penditures, and Changes in

Fund Balances of Governmental Funds to the Statement of Activities

For the Fiscal Year Ended June 30, 20 18

Amounts Tt!po rtcd for govenuncnt al activi ties in the statement of activiti es arc di!Tcrcnl bt.!cause:

Ne t change in fund balance-total governmental funds

Governmental funds report capital outlays as expenditures. However, in the statement of acl l\, ttcs, the costs of those capital assets are allocated over their estimated uscfitllives as depreciation expense. Th is is the amount by which depreciation exceeded capit al outlay in the current period.

Capital outlay Depreciation expense

7,406,728 (10,056,055)

Ccrt" in accmed interest revenue of notes rece ivable reputtcd in the statement of ac tivi ti es arc not available to pay for current period expenditures. and therefore, are not reponed as revenues in a governmental fimd. Thi s is the net change in interest receivable for the current period.

The issuance of lung-1ern1 debt provides current financial resources to govemmentall\mds, while repayment of the principal of long-tcnn debt consumes the current financial resources of the governmental fimds. Issuance of bond principal is an other fin anci ng source and repayment of bond principal is an expenditure in governmental funds, but the issuance increases long-term liabili ties and the repayment reduces long-term liabilities In the statement of net posuion .

Current year amortization of premium for advances from Successor Agency

Revenue bonds (net of original issue discount) Lease revenue bonds (net of original issue discount)

Compensated absence expendi tures reponed in the stat ement of activi ties do not require the usc of current linancial resources and therefore, are not reported as expenditures in a governmental llmd. This is the net change in compensated absences fo r the current p~rim.l.

Dt:Ut issuance CO!;t!i nrc expenditures in the eovt':n uneuli.il funds, but these coS I$ are capi tnlizc:d nnd amortized in the statement of net position. This is the amount of new capitalized debt issuance costs

In governmental funds, pension 'md OPEB costs arc recognized when employe r contributions arc made. In the statement of ac tivi ties, pension and OPEB costs arc recogn ized on the accrua l basis. This fi sca l year, the diiTcrence between accrual-basis pension and OPEB costs and ac tual employer contributions was:

Accrued interest is interest due on Jong-lern1 debt payabl e. This is the net change in accrued int erest for the current period.

Internal service f\mds arc used by management to ch,u·gc th e costs of certain activities, such as " lf-insmance, to indi \1dual fundo. The net revenues (expenses) oft ltc intcma l service funds are reported with govcmme ntnl nctivi ties.

Change in net positi on of guYentmcntal activities

115 ,989 763 ,1 82 408 , I 09

The notes to the financ ial statements are an integral part of this statement 30

1,865 ,948

(2,649,327)

411,01 0

I ,287,280

46,469

(2,284,857)

II ,9 71

(25 2,49 1)

(1 ,563,997)

CITY OF EL CENTRO Stntt"mc nt ori'ie t Posi tion

l'ropric=tll ry Fun ti s June 30,20 18

Business-ln!e Ac li vi tirs-E nterj!dse Funds Nonmnjor

Wnte r W:l slrwn tcr l l ospi t:1l Enterprise Fund Fund Fund Furu.Js Tot"l

Assers t1 nd DeCcrrctl OutOow of Rrsourt'es Current Assets:

Cash nnd Investmen ts 21.60 1,836 17.289,546 32,694.867 104.344 71 ,690,593 Cash and Invcstmems with Fisca l Aijent 2,3 27,852 10,758,817 13,086,669 Receivables (Net of Allowances for Unco llect iblcs):

Accounts I ,424,877 1,50 1 , 98~ 19,061,462 33<1,473 22,322,800 Notes I 02,242 102,242 Other 799,480 760,939 1,560,4 19 Interest 13,053 20,8 13 345 34,2 11

Due Cram Third-Pany Payors 3, 139,853 3, 139,853 Inventories I ,879,526 1,879,526 PrcpJid ExpensL'S 1.989,8 11 1.989,811

Total Current Assets 25,469.860 30,370,644 59,526,458 439,162 115 ,806, 124

Noncu rrent Assets: Investm ent in Joint Ven!Urc 262.595 262,595 Restricted Assets:

Ca.s b and Investments 73 ,031.1 70 73,03 1,1 70 Capital Assets:

L1nd 181,547 78,560 1,516,140 1.776,247 Buildings 920,335 835,0 15 87,309,575 89,064,925 lmprovcmenls other than Buildings 73 ,3 62,017 60,310,994 133,673,01 1 M"ch inery and Equipment 3,3 15.150 1,478,995 54,422,822 59,2 16,967 Fum irure and fi xtures 33,740 28,515 62,255 Vehicles 1,21 0,559 1,003,755 2,2 14.31 4 Construction in Progress 24,563 5,489,530 32,416,337 37,930,430

Less: Accumul;ued Depreciation (47,4 17,962) (43,108,775) (82,669,160) ( 173 .1 95,897)

Goodwi ll 3,370,409 3,370,409 Total Noncu rrent Assets 31,629.949 26. 11 6,589 169,659,888 227.406,426

Total Assets 57,099,809 56,·187 .23 3 229. 186,346 ·139, 162 343,2 12.550

Deferred Outflow of Resources: Deferred Joss on debt refunding 2,013,543 I ,977,851 3,99 1,3 94 Pension 770,992 952,.107 11,002,700 12,726,099

Toral Deferr ed Ou tO ow of Resources 2.784,535 2.930.258 11 .002.700 16.717,493

Linbililies nnd Defrncd Inflow or Hcsou rc r~

Current Liabilities: Accounts Payab le 173,405 2,·142,703 13,666,765 162,265 16,445, 138

Salarics/D encfits Payab le 62,283 70.234 7,682.675 7,815, 192

Interest Payable 303,861 270,860 574,72 1

Customer Deposits 94,887 72,000 166,887

Due to Oth er founds 185,830 185,830

Unearned Revenue 18,027 32) I 8.350 Compensated Absences 93,147 105,487 198,634

Cu rr ent Ponion ofLong·tcnn Obligations 1,2 17,633 1,3 92.264 2,669.)37 5,279,434

Total Current Liabiliti es 1,963.243 4.281.871 24 ,0 18,977 420,095 )0,684, 186

Nom:urrent Liabilities: Compensated Absences 143,374 I 53,404 296,778

Net Pens ion Liability 2.427,891 2,999, 174 46,215,500 51,642,565

Lon&·tcrm Debt 30,507,823 26,047,637 II 8,346.508 174,901,968

Tota l Noncurrent Liabili ties 33,079,088 29,200,21 j 164.562.008 226,811 \ ,J II

Tow! Liabilities 35,042,331 33,482,086 I 88.580,985 420.095 257,525,497

Deferred lnOO\\' of Resources: Pension 19,764 24.415 15 3.300 197,479

Tot:'! I Deferred Inn ow of Resources 19,764 24 ,.11 5 I 53,300 197 ,479

/'ict Posicion Net lnvt!stmcnt in Cap it al Assets (95,507) 9,435.505 36,798,958 46,138,956

Restricted For · Debt Service 2,023,99 1 8,2 11,881 10,235,872

Unrestricted 22.893,765 16,475,485 6,•143.922 19.067 -15,832,239

Total ~et Position 24,822.:N9 25,910.990 51.454,761 19,067 102.207,067

The notes to the fin ancial statements are an integral part of th is statement 3 1

Gon·mmen la l

AcliYilin Internal

Se n· ice Funds

7,83~.620

24, 11 2

10,045

7,868,777

7,868, 777

108,143

108, 143

515,218 5,358

2~. 11 2

544,688

340,547

3~0.547

385.235

2,772

2,772

7,088,913 7,088,9 13

CITY OF F.!. CF.NTHO Stntern ent of Revenues, Expenses, :Jnd Ch:lllges in Net Position

Proprie tary Fu nds

For the Fiscal Yc:Jr Ended June 30,2018

nus incss~t~~c :\ctivitie~ - F.nter~ri~c fund!\

Nonmnjor 'Vater \Vastewntcr Jlospitnl En terprise Fund Fund Fund Funds To tal

Opcrntin£ Revenues: Charges for Services s 8, 794,393 9,762,827 149,382,400 1,862,502 169,802,122 Other Revenues 174,819 2,060 7,4 18.99 1 7,595,870

Total Operating Revenues 8,969,212 9,764,887 156,801.391 I ,862,502 177,397,992

Operating Expenses: Pcr.!Uillh!l Sc1 vi~o.c::t L, llo,oYo l;lbJ,I ~~ nyn.401 77, 166,295 Contrac:twtl Services Supplies and Services 2,114,279 1,915,839 75,137,406 1,980,086 8 1,147,6 10 General anJ AJ1nini o;; trat ivc 8 1•1,78 .1 Y31,946 179,699 1,926,428 Depreciation 2,375,721 1.770.]09 6,788.175 I 0,934,205

Total Operating Expenses 7,430,479 7,081 ,292 154.502,982 2, 159,785 171 ' 174 ,538

Operating Income (Loss) 1,538.733 2,683,595 2.298,409 (297,283) 6.223,454

Non Opcrnling Rcvenue.s (Ex pen.s e~ ):

!merest Revenue 301,184 305,393 721.292 980 1,328,849 Interest Expense ( 1,232,770) ( 1.065,324) ( 1.970,575) (4,268,669) Grant Revenue 800,000 476.362 I ,276,362 Other Non-Operating Expcnc;c: (2,82 1.J.I')) (2.821,3•19)

Torn\ 'Non-Operating Revenue (Expenses ) (9J 1,586) 40,069 (3,594.270) 980 (4,484.807)

Income (Loss) Before C.apit<tl Contributions 607, 1 •17 2. 723.664 ( 1.295.861) (296,3 03) 1,7)8,647

Capitnl Contribut ions 701.51 9 ---~_7_,?_~5 ----- 1,539. 194

Income (Loss) Before Transfers I ,308,666 3,561.339 ( 1.295.861) (296.303) 3,277,84 1

Transfers In 607, 184 607,184 1,2 14,368 Transfers Out (500,000) ('00,000) (1.000,000)

Change in Net Position 1,415,850 3,668,523 ( 1,295.861) (296.303) 3,'192 ,209

Net Position- Beginning of Fiscal Year 23,406,399 22.242,467 52.750.622 J 15.370 98,7 14,858

Net Position- End of Fiscal Yco.r 24,822.249 s 25.9 10,990 5 1,454,761 19.067 102,207,067

The notes to the financtal statements are an integral part of this statement 32

Govcrnmcntnl ,\rtiriti~s

Interna l Sen•icc

fun Us

s 5,527,689 124,282

5,651,971

703,31 1

5,295,192

5,998,503

(346.532)

94 ,04 1

94,041

(252.491)

(252,49 1)

(252,49 1)

7.34 1.404

7,088,9 1 J

CITY OF EL CENTRO STA TE~I ENT 0 F CASH FLOWS

PltOPRIF.TARY f.UNDS

For the Fiscol Year Ended June 30, 2018

!Jus iness ·!v~c Acli"ities • Emcrerisc Funds Nonmajor Enterprise

Wrul!r Wasil! water Hoseitnl Funds

CASH FLOWS FROM OPERATI:-.!G ACTIVITIES:

Cash Received from Ptttients nnd Third Ponies on Ocha lf ofPatierHs 14 3,7%,7&4 Cash Received from Operations, other than Pnticnt Services 7,02 1,4 HI Cnsh Received from Users 9,070,401 ~.MH0,078 2,125,907 Cash Payments to Suppliers and Contractors (2,118,2 15) 180,23? (72,565,495) (2,083,293) Cash Payments for General :md Administrative E:..pcnses iHI4 .nJ) (?3 1,94/i) (17?M9) Cash Payments for Employees and Benefit Programs ( 1,858.272) (2.11\5.656~ (n7.58l.B84l

Net Cash Pro\'ided (Used) By Operating Activiti es 4,27'J.I31 6,')42.715 10,670.886 (137JlR5)

CASH FLOWS FROM NONCAP ITA L FINANCING ACTIVITIES:

Cash Parmcnts for Interfund Borrowing (32,301) Transfers out (500.000) (500,0011) Transfers in tl07, 1H4 607,1&4

Granls ~76.3tl2

Note R~ccivable 9,592 Other Recei\·able 19.319 40~.48 I

Nt:l Cash Provided (Used) B)· Noncapital Financing Acli\'ities 136.095 107.184 8R4.H43 p2.301)

CASH FLOWS FROM INV ESTING ACTIVIT!ES: lntcn .. -st Received 30 1,1 84 305,393 H05,1l07 1, 178 Proceeds Crom Snles and Maturities of Investments 24 ,649,05 1 Purchases of lm·es tments (H0,417,027)

Net Cash Provided (Used) in Investing Activities 30l.IH·I 305,393 ~54.962.969) 1.1 7R

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVIT IES:

Proceeds from Debt Borrowings 11 5,01lX,J61 Principal Payments on Debt Borrowings (l,049J)hK) (1 ,2W,H7X) (4fi,620, 10 1) Capital Contribulions 701,5 19 837,075 Interest and Fiscal f(!es Pnid { I ,249 ,357) (t.or,o,Ot6) ((,,)00,173) Acquisition of Properly, Pl:mt, and Equipment ( 1,721J ,463) p.6f.S.RJ9~ (11.589.417)

Net C;uh Pro,·id ed (Us~d) In Capital and Rclatl.!d Financing Actiri1ies {J.J2(J.3(,CJ~ (9, 1·19.05X) 50,49H,670

NET INCREASE (DECREASE) IN CASH AND CASH EQU IVALENTS 1,3!.10,04\ (J.7tJJ,766) 7,091,430 (168.20R)

CASH AND CASH EQU IVALENTS, BEGINNING OF FISCAL YEAR 22.539.647 ?l),t\42.129 7JD2.599 272.552

C;\ SH ;\ND CASH EQUIVALENTS, END OF FISCAL YEAR 23,921J.6SX 2!i.U-18 ,)(,J 1·1,924.029 IO-U4-1

Noncash Transactions: Amo rtization (?.I(,(,) 11.1 K~

Reconciliation to Stn!cment of Net Position: Cash and ln\'estments 21 ,Wl,XJf. I 7,2~1),54(, 32.(,~4.H67 104,344 Res trict~d Cash and lnv~stmcnt.s with Fiscal Agents 2,327 ,H52 lli.75ll.R17 73,031, 170 Les5 im·e:slmcnls not mcc1ing dofin ition ofcD.Sh tJqui,·alcnts (90,1\0:!,00M l

2J,929.riKS 28,0-tR,JCi) 14,924,029 104.344

CAS H FLOWS FROM OPERATING ACTIVIT!ES: Operat ing Income (loss) 1.538,733 2.(1}1),51)5 2.:!9~ .. JU9 (297 ,210)

r'\djus lmentto Reconci le Operating lncomt! (Loss) to Net Cash Pro\'ided {Ust!d) by Opcraling Acti\'ities:

Depreciation and Amortization 2,375,72 1 1,770,)0') (•,1XH,I75 Chanses in Asse ts and Li:lbilities: (Increase) Decn:asc in Accounts Receh·able \02,121 117.11 6 (4.ri32.5n) 263,405

(lncre:uc) Decrease in fnvenlori cs, Prcp:1id Expens..:s. Other Recci\'ab les, and Other Assels (14?,8?4)

(Increase) Dccr.::ase in Estimated Tltird Party Payor Seukm.::nts (l,l50,534)

Increase (Decrease) in Accounts P3ynblc nnd Accrued Linbilities (3.936) :!,O%.U7!S 2.12 1 .~us (103 ,107)

Increase (Dt!crcase) in Salary/Benefi ts Payable 1 ,2lHI {4.20U) G55,!.1 17 Increase (Decrease) in Deposit P~yable (505)

lncrl!ase (Decrease) in Unenmt:d Revenut: (1.027) (1.91 5)

Increase (Decrease) in Net Pension Linb ility 2-1 I. M22 291\.722 4,339/tOO Increase (Decreasl!) in Compensated Absences 24.322 { !G.~~U}

TotJI Adjustments 2.7411.3'JX ... 259. 120 8.372.477 16U. I!JM

Net Cash Pro\·idcd (Used) B~· OperJ ting AcliYilies .t.279, 13 J 6.942.715 IU.670, 8MC, (I 37,0~5)

The notes to the financia l statements are an integral pm1 of this statement 33

Gon~mmcntal

;\ctiri ti es

lnt~mal Service

Totals Funds

143,796,7X4 7,02 1,4HI

21,076,3Hfi 5,65 1,97 1

(76,586,764) {5,194,949)

(1,926,428)

(71,fi25,K12) (68?,5301

2 1,755.647 (ll2.50H)

(32,30 1)

( 1.000,0110)

1,214,308 471i,362

9,592 427,800

1,095.82 1

1,412,7(,2 94 ,04 1 24,649,05 1

(80,417,0271

(54.355,2 14) 94,(J.tl

115,008,36 1 (4H,?30,1l4 7)

1,539,194 (M ,609.546)

(2(},98-1.7 19)

3M.023.243

6,5 19,497 (138,467)

60,486.927 7.973.087

(,J ,Oil6,424 7,834.620

2,0 I H

71.690,593 UtH.(i20 S6, 1 17,SJ~

( 90,8l)1 .00~)

ri7,0Uri,·l24 J.K34.620

6.223,454 (J.Hi.532)

10,934,205

(4,1·19.)50)

(149,8~4)

11.350,53·1) 4,710,740 KO. Inr,

(}52,997 (505)

(2,!.152) 4, KKIJ.I44 33,9 1M

7.342

15.532, 1 ')) 114.1124

21.755.647 (l32.50~)

CITY OF EL CENTRO Statement of Fiduciary Net Position

Fidu ciary Funds June 30, 20 18

Private-Purpose Trust Funds

Assets : Cash and Investments $ 3, 150,134 Cash and Investment ~ with Fiscal Agent S, 199,943 Taxes Rece ivable Interest Receivable 362 Notes Receivable 59,044 Advances to City of El Centro 9,4 13,455

Discount for advances to City ol' El Centro 850,914 Cap ital Assets, Not Being Depreciated 7,458,729 Capital Assets, Net of Accumulated Depreciation 12,795,363

Total Assets 38,927,944

Liabilities: Accounts Payable 60,551 Sulnrics/Bcncfi ts Payab le 2,946 Interest Payable 290, 121 Deposits Payable Due to Bondholders Noncurrent Liab ilities:

Due within One Year 1,674,9 15 Due in Mo1 e llian One Year 29,668,520

Total Liab ilities 31,697,053

Net Position : Unrestricted 7,230,891

Total Ne t Posit ion $ 7,230,891

$

$

$

$

The notes to the financ ial statements are an integra l part of this statement 34

A~ency Fund Legacy Ranch

CFD

72,276 141 ,233

27 92

2 13,628

o,ROR 206,820

2 13,628

CITY OF EL CENTRO

STATEMENT OF CHANGES IN NET POSITION

PRIVATE-PURPOSE TRUST FUNDS


Private-Purpose

Additions:

Investment Revenue $

Intergovernmental

Property Taxes

Total Additions

Deductions:

Administration


Depreciation

Interest Expense

Total Deductions

Excess (Deficiency) of Revenues Over

(Under) Expenditures

Change in Net Position

Net Position, Beginning oH'iscal Year

Net Position, End ofFiscal Year $

The notes to the financial statements are an integral part of this statement 35

Trust

Funds

81,267

260,459

3,523,675

3,865,401

99,718

57 1,104

1,717,297

2,388,119

I ,477,282

1,477,282

5,753,609

7,230,891


36

NOTES TO

BASIC FINANCIAL STATEMENTS

CITY OF EL CENTRO NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2018

NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

The City of El Centro was incorporated under the laws of the State of California in 1908 and is governed by an elected five-member council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component unit, an entity for which the City is considered to be financially accountable. TheEl Centro Regional Medical Center (Hospital) is an operating depmiment of the City and is reported within the proprietary fund type.

Blended component units, although legally separate entities are, in substance, part of the City's operations, and so data from these units are combined with data of the City. The City and its component unit have a June 30 fiscal year-end. There are no component units included in this report.

B. Basis ofPresentation

Government-wide Financial Statements

The statement of net position and statement of activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall government, except for fiducimy activities. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables, and receivables. All internal balances in the Statement ofNet Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. These statements distinguish between the governmental and business-type activities of the City and between the City and its blended component unit. Governmental activities, which normally are suppotied by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent on fees charged to external parties.

The statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically asso<;:iated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. When both restricted and unrestricted resources are available, unrestricted resources are used only after the restricted resources are depleted.

37


June 30, 2018

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Basis of Presentation (Continued)

Fund Financial Statements

The fund financial statements provide informAtion about the City's funds, including fiduciary funds. Separate statements for each fund category - governmental, proprietmy, and fiducimy -are presented. The emphasis of fund fimmcial statements is on major governmental and enterprise funds; each displayed in a separate column. All remaining govemmental and enterprise funds are separately aggregated and reported as nonmajor funds.

Proprietary funds distinguish operating revenues, such as charges for services, and result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subs idi es and investment earnings, result from nonexchange transactions or ancillary activities.

The City reports one major governmental fund:

The General Fund is used to account for all revenues and expenditures necessary to cany out uasic governmental activities of the City that are not accounted for through other funds . For the City, the General Fund includes activitie~ ~uch as public protection, public works ami facilities, parks one recreation, and community development.

The City repo1ts the following major enterprise funds:

a

..

The Hospital Fund accounts for the operations of the El Centro Regional Medical Center, which provides health care services to the community and surrounding area.

The Water Fund accounts for revenues and expenses associated with the lreal111enl and distribution of potable water.

The Wastewater Fund accounts for revenues and expenses assoc iated ·with the co ll ection and treatment of wastewater.

The City reports the following additional fund types:

lntema! Service Funds account for operations that provide services to other depatiments or agencies of the City, or lo other governments, on n cost-reimbursement basis, such as motu1 vehicle maintenance, worker's compensation, post-employment benefits, and group hea lth msurance.

38


June 30, 201S


B. Basis of Presentation (Continued)

Fiducimy Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other government units, and/or other funds. An agency fund such as Legacy Ranch CFD is purely custodial in nature (assets equal liabilities) and, thus, does not involve measurement of results of operations. Trust funds, such as Successor Agency to the Redevelopment Agency, use the flow of economic resources measurement focus and the accrual basis of accounting.

C. Basis of Accounting and Measurement Focus

The government-wide and proprieta1y fund financial statements are rep01ied using the economic resources measurement focus and along with the fiduciary fund use the full accmal basis of accounting. Revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include prope1iy and sales taxes, grants, entitlements and donations . On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied . Revenues fi·om sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrua l basis of accounting. Under this method, revenues are recognized when susceptible to accrual (i .e., when they are "measurable and avai lable"). "Measurable" means the amount of the transaction can be determined and "avai lable" means collectible within the current period or soon enough thereafter to pay liabilities of the current period . The City considers all revenues availab le if they are co llected within 60 days after fiscal year-end except reimbursement gran ts which are consider available if they are co llected within one year. Expenditures are recnrded when the related fund liability is incurred, except for debt service expenditures, vvhich are recognized when due, and ce1iain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable availab le financial resources. Capital asset acquisitions are rep01ied as expenditures in governmental funds. Proceeds of long-term debt and capita l leases are reported as other financing sources .

Property taxes, transient occupancy taxes, and interest are susceptible to accrual. Sales taxes collected and held by the state at fisca l year-end on behalf of the City are also recognized as revenue. Other receipts and taxes become measurable and availab le when cash is received by the City and are recognized as revenue at that time.

Entit lements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrua l cr iteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.

39


Ju ne 30, 2018


D. Assets, Deferred Outflow of Resources, Liabilities, Defer red Inflow of Resources, and Equity

1. Deposits and Investments

In order to maximize the fl exibility of its investment program and to aid in cash budgeting, the City pools the cash of all funds, except tor monies deposited with fi scal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund 's equity share of the City 's cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund 's equi ty in the pool, the poo l operates like a demand deposit account for the participating funds.

Interest income earned on pooled cash and in vestments is allocated monthly to the various funds based on month-end balances and is adjusted at fisca l year-end. Interest income on restricted cash and investments with tiscal agents is credited direc tly to the related fund .

In accordance with the State of California Government Code, the City ;H"lnpts an investment policy annually th at, among other things, authorizes types and conct:ntrations of investments and maximum iuvt:s lment terms.

The City's in vestments are carried at fa ir value. The fair va lue of equity and debt securiti es is detem1ined based on sales prices or bid-and-asked qu otations from SEC-registered securit ies exchanges or NASDAQ dealers. LAlF determines the fa ir va lue of its portfo lio quarterly and reports a factor to the City; the City applies that factor to convert its share of LAlF from amortized cost to fa ir value. Changes in fair value are allocated to each participating fund.

For purposes of the statement of cash tlows, the City has defined cash and cash equiva lents to be change and petty cash fund s, equity in the City' s cash and investment pool , and restricted nonpooled investments with initial maturi ties of three months or less .

Investments are stated at fa ir va lue in accordance wi th GASB 3 1, Accounting and Financial Reportingfor Certain Investments and for External Investment Pools. Short-term investments are rep01ted at cost, which approximates fair value. The fair valu es are based on quoted market prices, if available, or es timated using quoted market prices fo r similar securi ties. Securities traded on national or international exchanges are valued at the last reported sa les price at cuiTent exchange rates. Interest, dividends, and reali zed and unrealized ga ins and losses, based on the spec ifi c identification method, are included in interest revenue when earned.

The City has established the PARS Post-Employment Benefits Trust as a tax-exempt trust within the meaning of Section ll 5 of the IRS Code to accumulate resources to "stabilize" the amount of its General fund resources that it will need to meet future contri but ions requirements to CalPERS. The balances and activities of the J rust are irrevocably ded icilterl to funding future obli ga tions to CalPERS . The assets will benefi t the City through reduced future cash tlow demands on the City ' s General fu nd resources and continue to be assets of the City . These allJ Ounts are refl ected as restrir. terl r.<1s h and investments in the General fund.

40


June 30, 2018


D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Equity (Continued)

2. Receivables and Payablt!s

Transactions between funds that are representative of lending/bon·owing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as rep01ied in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not avai lable for appropriation and are not expendab le available financial resources.

Receivables, including those for the Hospital, are shown net of an a llowance for uncollectible accounts . See Note 1-D-12 and Note 1-D-13 for Hospital receivables.

For each fiscal year beginning July 1, taxes are levied on taxable real (secured) and personal (unsecured) property located within the City as of the preceding January 1. Secured property taxes are payable in two installments on November 1, and February I of each fisca l year, and become delinquent after December I 0 and April I 0, respectively. Taxes on unsecured property become delinquent if not paid by August 3 I. A I 0 percent penalty attaches to delinquent taxes, which have been levied on property on the secured roll. Such property may thereafter be redeemed by payment of the delinquent taxes and the delinquency penalty, plus a redemption penalty of I Yz percent per month to the time of redempt ion. If taxes are unpaid for a period of five years or more, the prope1iy is deeded to the State and is subject to sale by the County Tax Collector.

The on ly concentrated group of credit risk is Hospital receivables from government agencies. Hospital management does not believe that there is a significant credit risk associated with these government agencies. Management conlinuuusly monitors and adjusts reserves and al lowances associated with these receivables.

3. Inventories and Prepaid Items

Inventories in Proprietary funds are valued at cost using the first-in/first-out (FIFO) method. The cost of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased.

Ce1iain payments to vendors reflect costs appli cable to future accounting periods and are recorded as prepaid items.

41


June 30, 2018


D. Assets, Deferred Outflow ofResom·ces, Liabilities, Deferred Inflow of Resources, and Equity (Continued)

4. Restricted Assets

Restricted funds are the portion of a fund balance that reflects constraints placed on the use of resowces lltal <lit: c:itlter (a) extemally irnposetl by creditors (such as through Jebt covenants, grantors, contributors, or laws or reguli'Itions of other e;overnments; or (h) imposerl hy law through constitutional provisions or enabling kgislation. See below for descriptions of some restricted fuutls of the City. For additional information regarding Restricted Funds, see Note 16.

Certain assets of special revenue/capital project grant funds are classified as restricted assets because their use is restricted by grant agreements.

Cetiain resources of the LTA Lease Revenue Bonds Capital Projects found and 2011 C Bonds City Capital Projects Fund are set aside for the capital projects and are classified as restricted assets because their use is restricted by applicable bond covenants.

Certain resources of the LTA Lease Revenue Bonds Debt Service Fund, Financing Authority Debt Service Fund, and the Water and Wastewater funds are set aside for the repayment of bonds and certificates of participation and are classified as restricted assets on the balance sheet/statement of net position because their use is limited by applicable bond covenants.

Cetiain resources of the Group Health Insurance internal service fund are classified as restricted because its use is limited by the provisions of plan documents .

Certain resources of the Hospital set aside for the repayment of bonds are class ified as restricted assets on the balance sheet because their use is limited by app li cab le bond covenants.

Certain Hospital assets limited as to use primarily include assets held by trustees under indenture agreements and designated assets set aside by the Hospital Boord of Trustees for future capital improvements over which the Board retains control and may, at its discretion, subsequently use for other purposes.

Cetiain restricted resources consist of funds limited as to use by donors. Restricted gifts, bequests, and grants are reported as restricted funds until expenditures are made for the donor's intended purpose.

The government-wide statement of net position reports $49,844,522 of restricted net position.

5. Capital Assets

Capital assets, including infrastructure, are recorded at historical cost or at estimated historical cost if actual historical cost is not avai !able. Contributed capital assets, donated works of art and similar items, and capital assets received in a service concession anangement are report at acyuisitiu11 value mll1eJ tkw fair vulue . Capital assets include public domain (infrastructure) general capital assets which consist of certain improvements including roads, bridges, pavements in progress, and right of way. The City defines cap ita l assets as assets with initial, individual costs of more than $5,000 and an estimated useful li fe in excess of one year. The Hospital defines cap ita l assets as assets with initial, individual costs of more than $500 and an estimated

42


June 30, 2018



5. Capital Assets (Continued)

useful life of at least three years. Capital assets used in operations are depreciated or amortized (assets under capital leases) using the straight-line method over the lesser of the capital lease period or their estimated useful lives in the government-wide statements and proprietary funds.

Maintenance and repairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities, or extend useful lives, are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Property, plant, and equipment of the City and Hospital are recorded at cost. Prope1ty, plant, and equipment donated are recorded at their acquisition value at the date of donation.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Net interest cost during construction is capitalized when the effects of capitalization materially impact the financial statements.

Prope1ty, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives:

Buildings Building Improvements Equipment Office Furniture Vehicles Infrastructure

6. Intangible Assets

Qty 5-70 5-30 3-20

5 3-15

20-50

Hospital 5-40 5-40 3-15 3-15 3-15

Not Applicable

The Hospital classifies intangible assets as definite-Jived or indefinite lived intangible assets. These assets are stated at cost. Definite-lived intangibles include non-complete covenants. These assets are amortized on a straight-line basis over the lives of the related agreement over four years. The Hospital periodically reviews the appropriateness of the amortization periods related to its definite-lived assets. Indefinite-lived intangibles consist of goodwill arising from the Hospital's purchase of an Oncology Center. In accordance with GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, indefinite lived assets are not amortized, but instead are evaluated annually for impairment. To date, the Hospital has not recorded any impainnent.

43


June 30, 2018



7. Goodwill

Goodwill tor the Hospital represents the excess of purchase price of acquired businesses over the net tangible and identifiable intangible assels a~.:yuireu a11u liauilities assumed in connection with the acquisition offln oncology pr-'lr.tir.e in fisr.HI year 2011. At June 30,2018, goodwill associated with this transaction was $3,370,409. The Hospital evaluates goodwill for impairment at least annually or whenever events or changes in circumstances require an interim impairment assessment. The Hospital compares the fair value of each reporting unit to its carrying amount to determine if there is potential goodwill impairment. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill within the reporting unit is less than the carrying value of its goodwill. The Hospital performs its annual lesl fur goodwill and intangible assets as of December 31st using a present value technirp1e (discounted cash flow) . The Hospital's management determined that there was no impairment of goodwill as of June 30, 2018.

R. Compensated Absences

It is lite City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation and sick pay is accrued when incurred in proprietary funds and reported as a fund liahility. The City accrues for compensated absences in the government-wide and proprietary fund financial statements for which they are liable to make a payment directly.

Vacation, sick, and/or annual leave is dependent on the respective employee's bargaining group agreement. Leave provided is to be utilized as sick leave, to attend medical appointments, vacation, etc. Sick leave payoff is available for accumulated sick leave hours over 288 hours. Hospital employees are not paid for accumulated sick leave if they leave before retirement.

Compensated absences have been liquidated in the past fiscal year in the general fund and enterprise funds.

9. Deferred outflows/inflows of resources

In addition to assets, the statement of net position will sometimes rep01i 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 has deferred outflows from deferred gain/loss on debt refundings .

In addition to liabilities, the statement of nel pusitiu11 will sometimes report a separate section for deferred inflows of resources. This separate fin:mci~l statement element, deferred inflows of rt:sOLJrces, represents an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (reve11ue) u11lil that time. The City recognizes deferred inflow <md outflows of resources pursmmt to GASB Statements 6H, '/ 1, and ·;-:; regarding Pension and Other Post-Employment Benefits. The City also recognizes unavailable revenue, which is repotied only in lhe governmental funds balance sheet. The governmental funds report una vail able revenues from sources such us: property taxes, grant revenue, and long-term loan receivables. These amounts are deferred and recognized as an inflow of resources in the period thal lhe amounts become available.

44


June 30, 2018



10. Long-term Obligations

In the government-wide financial statements, and proprietary fund types in the fund financia l statements, long-term debt, and other long-term obligations are reported as liab ilities in the applicab le governmental activities, business-type activities, or proprietary fund type statement of net position.

Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method or the straight-line method. Bonds payable are reported net of the applicable bond discount in the Hospital Fund.

In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources whi le discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are rep01ted as debt service expenditures.

11. Net Position and Fund Equity

GASB Statement No . 63 requires that the difference between assets added to the defen·ed outflows of resources and liabilities added to the defen·ed inflows of resources be reported as net position. In the Government-wide financial statements, proprietary fund financial statements, and fiduciary financial statements, net position is classified as either net investment in capita l assets, restricted, or unrestricted . See note 17 for additiona l infonnation regarding governmental net position .

In the fund financial statements with the implementation of GASB Statement Nu. 54, governmental funds report fund balance is either non-spendable fund balance, restricted fund balance, committed fund balance, assigned fund balance, or unassigned fund balance. See Note 18 for additional information regarding the governmental fund balances.

12. Net Patient Se1-vice Revenue

Hospital net patient serv ice revenue is repo1ted at estimated net rea lizab le amounts from patients, governmental programs, health maintenance, and preferred provider organizations and insurance contracts under applicable laws, regulations, and program instructions. In some cases, reimbursement is based on formulas, which cannot be determined until after cost reports are filed and audited or otherwise settled by the various programs. Estimation differences between final settlements and amounts accrued in previous years are reflected in net patient service revenue.

45


June 30, 2018



13. Allowance for Contractual Adjustments and Doubtful Accounts (Hospital)

Hospital ' s patient accounts receivab le are reduced by allowances for contractual adjustments and doubtful account:;. In eva luating the collectal.Ji lily of patient accounts receivable, the Hospital management ana lyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate all owances for both contractual adjustments and doubtful accounts. Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of these allowances. For receivables associated with services provided to patients who have third-party coverage, the Hospital management analyzes contractually due amounts and provides an allowance for doubtful accounts, if necessa1y. For receivables associated with self-pay patients (which includes both patients without insurance and patients with deductible and copaynH:::nl balances due for which third-party coverage exists for part of the bill), the Hospital records a provision for bad debts in the period of service on the basis of its past experience, wh ich indicates that many patients are unable or unwilling to pay the portion of their bill for which they are financial ly responsible. The difference between the standard rates (or the discounted rates if negotiated) and the amounts adually collected after all reasonable co llection efforts have been exhausted is charged off against Llle allowance for doubtful accounts.

14. Land held for resale or exchange

Cost of project land and improvements held for resale or exchange are recorded in the Successor Agency Special Revenue Fund as inventory at the lower of acquis ition cost or net realizable value. The fund balance is restricted in an amount equal to the canying va lue of land held for resale or exchange.

E. Use of Estimates

The preparation of financial statements in conformity with ::tccounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and li abi lities and disclosures of contingent assets and liabilities at the date of the financia l statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period . Actual resu lts could differ from those estimates.

F. New Accounting Pronouncements

Govemmental Accounting Standqr(is Board Statement Nn. 75 For the fiscal year ended June 30, 2018, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Rep011ing for Postemployment Benefits Other Than Pens ions. The objective of this Slalement is to improve accou~tting and financial reporting by state and local governments for postemployment benefits other than pensions (OPED). It es tul.Jlisltcs standards for recogttizing ancf measuring liabilities, deferred outflovvs of resources, deferred inflows of resources, and expense/expenditures. lmplernentation of GASB Statement No. 75 did have an impact on the City's financial statemen ls for the fisc::tl year ended June 30, 2018. Please sec Note 14 for more details .

46


June 30, 2018


G. Future Accounting Pronouncements

GASB Statements listed below will be implemented in future financial statements.

The provisions of Statement Number 83 "Certain Asset Retirement Obligations" are effective for fiscal years beginning after June 15, 2018.

The provisions of Statement Number 84 "Fiducimy Activities" are effective for fiscal years beginning after December 15,2018.

The provisions of Statement Number 87 "Leases" are effective for fiscal years beginning after December 15,2019,

The provisions of Statement Number 88 "Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements" are effective for fiscal years beginning after June 15, 2018.

The provisions for Statement Number 89 "Accounting for Interest Cost Incurred before the End ofa Construction Period' are effective for fiscal years beginning after December 15, 2019.

The provisions for Statement Number 90 "lvfajority Equity Interests - an amendment of GASB Statements No. 14 and No. 61" are effective for fiscal years beginning after December 15 , 2018.

47


J un e 30, 2018

NOTE 2- STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Budgetny Information

Budgets are adopted on a basis cons istent with accoun tin g principl es gene r::~lly ::~cce pted in the United States of America for all governmental funds. Budgets are adopted annually and a ll annual appropriations lapse at the fi scal year end.

The C ity utili zes the fo ll mving procedures when establishin g the budgetary data reflected in the financial statemenls:

Prior to Jun e 30 of each fisca l year, th e C ity Manager submits to the City Council a proposed operating budget for the fisca l year commencing the fo llowing July I. The operating budget includes proposed expenditures and the means of financing them.

Public hearings are conducted at C ity Hall to obtain citizen input. Prior to July 1, the budget is adopted by motion of the City Council.

The City Manager is au thorized to transfer budgeted amounts between departm en ts within any fu!IJ . However, any revision that increases the total appropriations of any fund must be approved by the City Coun cil . The appropriated budget is prepared by fund, function, and department.

Formal budgetary integratio n is employed as a m::~nagement control dev ice during the year for a ll funds .

See Note to Req uired Suppl ementary Information fo r more details.

B. Budget/GAAP Reconciliation

No funds adopted project- length or budgetary basis budgets and, therefore, no schedul e reconciling th e amounts on th e Statement of Revenues, Expenditures, and Changes in Fund Ba lance-Bud get to Actual to the amounts on the Combined Statement of Revenues, Expenditures, and Changes in Fund Ba lances has been prepared.

C. Excess of Expenditures over Appropriations

For th e fiscal year ended June 30, 2018 , expend itures exceeded appropri ati ons in th e fo ll ow in g funds:

Fund ------------------N onma jor Fund:

Rec rea tion P rojects Spec ia l Reve nue Fund

Asset Forfe iture Spec ial Revenue Fund

Loca l Transportat ion Author ity Spec ial Reve nue Fund

Home Grants Specia l Reve nue Fund

OTS Gra nt Spec ial Reve1 1ue FunJ

I-I UD Elllitlernent Program Specia l Revenue Fund

CDBG Program Income Spec ia l Revenue Fund

48

Final

Appropriat ion

$

15,000

I ,o70,000

475,8 13

206,124

Expe nditures Excess

$ 30,998 $ 30,998

127,27 1 11 2,27 1

2,946,520 I ,876,520

8,300 8,300

63,336 63,336

523,536 4/, /l.J

2 15,2 18 9.094


June 30, 2018

NOTE 2- STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)

D. Deficit Fund Equity

At June 30, 2018, the following funds had an accumulated deficit:

Fund Nonmajor Special Revenue Funds:

Special Event Fund

2010 Earthquake Fund

Amount

$ 8,654

13,135

These fund balance deficits are primarily due to the City incurring costs in excess of revenues. The City will alleviate these deficits as revenues are received. In regards to the 2010 Earthquake Special Revenue Fund, the City has applied for additional grants to try to cover all the incurred expenditures.

NOTE 3- CASH AND INVESTMENTS

Cash and investments as of June 30, 2018 are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments Restricted Cash and investments

Restricted Cash and investments with fiscal agents

Fiduciary funds: Cash and investments

Cash and investments with fiscal agents

Total cash and investments

Cash and investments as of June 30, 2018 consist of the following:

Cash on hand

Deposits with fmancial institutions

Investments

Tota l cash and investments

49

$

$

126,576,459 74,531,170

33,058,642

3,222,410

5,341,176

242,729,857

$ 4,995

24,454,237

218,270,625

$ 242,729,857


June 30, 2018

NOTE 3- CASH AND INVESTMENTS (Continued)

A. Investments Authorized by the California Government Code and the City's Investment Policy

The table below icientifies the investment types that are authorized for the City ofEl Centro (City) by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the Califomia Government Code (or the City's investment policy, where more restrictive) that address interest rate ri sk, 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

Authorized Investment Type Maturity of Portfolio in One Issuer

Local Agency Bonds 10 years None None

U.S. Treasury Obligations I 0 years None None U.S. Govemmcnt Agency Issues 10 years None None Bankers Acceptances 180 days 40% None Commercial Paper 270 days 25% None Certificates of Deposit 5 years 30% None Repurchase Agreements I year None None Medium-Term Notes 5 years 30% None Mutual Funds N/A None None Money Market Mutual Funds N/A None None Time Deposits 5 years None None

Cal-Trust JPA N/A None None

Local Agency Investment Fund (LAIF) N/A None $65 million

The investment po licy allows for the above investments, which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.

B. Investments Aulhorized by Debt Agreements

Investment of debt proceeds held by bond trustees are governed by prov rsrons of the debt agreements rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the Investment types that are authoriLed for investments held by bond trustee. The tabk alsu iuentifies cetiain provisions of these debt agreements that address interest rate risk, credit risk, Anci concentration of creciit ri sk.

50


June 30, 2018


B. Investments Authorized by Debt Agreements (Continued)

Maximum

Maximum Percentage

Maximum

Investment

Authorized Investment Tz:ee Maturity of Portfolio in One Issuer

Local Agency Bonds N/A None None

U.S. Treasury Obligations N/A None None

State Obligations N/A None None

U.S. Government Agency Issues N/A None None

Money Market Deposits N/A None None

Bankers Acceptances N/A None None

Commercial Paper 270 days None None

Certificates of Deposit N/A None None

Repurchase Agreements N/A None None

Investment Agreements N/A None None

Local Agency Investment Fund (LA IF) N/A None None

c. Disclosures Relating to Interest Rate Risl<

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 rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfo lio 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 Type State Investment Pool (LA IF) Mutual Funds - Cal Trust U.S . Treasury Notes Federal Agency Securities Money Market Funds Medium Term Notes Certificates of Deposit Guaranteed Investment Contracts PARS Trust:

Money Market Funds Held by Bond Trustees:

Money ivlarket Deposits Local Agency Bonds Repurchase Agreements

Totals

Totals $ 12,004,472

52,225,563 11,436,398 12,598, 182 7,201 ,447 8,141,627 7,528,798

67,234,320

1,500,000

29,836,630 6,005,000 2,558,188

$218,270,625

12 Months or Less

$ 12,004,472 52,225,563

I ,592,359 2,685,739 7,20 1,447 4,244,7 18 3,171 ,768

1,500,000

29,836,630

Remaining maturity (in Months)

$

13 to 24 25-60 Months Months

5,949,582 3,225,345

3,153,734 3,393,174

6,687,098

743,175 963,856

67,234,320

More Than 60 Months

$

3,894,457

795,000 820,000 2,375,000 2,0 15,000 2.558,188

$ 11 5,257,696 $ 16,541,835 s 78,003,449 $ 8,467,645

51


June 30, 2018


Investment TvQe

D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations

The City has no investments (including investments held by bond trustees) that are hi ghly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

E. Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an investment wi ll not fulfill its ob li gation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented on the next page is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type .

Rating as of Fisca l Yea r End Miuin JUrt l Exempt

Legal From Amount Rating Disc losure AAA AA A

State lnvP.shnP.n t Pool (LA IF) $ 12,004,472 N/A $ $ $ $ $

Not Rated 12,004,472

Mutual Funds- Ca l Trust 52,225,563 N/A 57.,?.25,563 U.S. Treasury Notes 11 ,436,398 N/A 11 ,436,398 Federal Agency Securities 12,598,182 N/A 12,598, 182 Money Market Funds 7,201,447 N/A '/,'2.0 1,44'/

Medium Term Notes 8,141 ,627 A 8, 141,627 Cc rtilicates of Depos it * 7,528,798 N/A 7,528,798 Guaranteed Investment Contracts 67,234,320 N/A 67,234,320 PARS Trust:

Money Market Funds 1,500,000 N/A I ,500,000 He ld by Bond Trustee:

Money Market Deposits 29,836,630 A am 29,836,630 Local Agency Bonds 6,005,000 N/A 6,005,000 RepurciJa~e Agreements 2,558, 1llll NIA 2,558, 188

Total $ 218,270,625 $ 78,670,718 $ 42,434,8 12 $ s 8,14 1,627 $ 89,023,468

* Covered by FDIC Insurance up to $250,000 per in stitution.

F. Concentration of Credit Risk

The investment policy of the Cit)' contains li mitat ions on the amount that can be invested in any one iss uer. Investments in any one issuer (other than U.S. Treasury securiti es, mut11al funds, and external investment pools) that represent 5% or more of total City investments are as follows:

l ssuer

Cit)' of El Centro RDA

Investment

Type

Tax Allocation Bonds

52

Reported

/\mount

$ 6,005,000


June 30, 2018


G. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a deposit01y financial institution, a government will not be able to recover its deposits or will not be able to recover col latera l securities that are in the possession of an outside party. The custodial cred it risk for investments is the risk that, in the event of the failure of the counterparty (e.g. brokerdealer) to a transaction, a government wi ll not be able to recover the value of its investment or collateral securities that are in the possession of another pmty. 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 governmental units by pledging securities in an undivided coll ateral pool held by a depository regulated under state law (unless so waived by the government 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 Jaw 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, 2018, $5,502,964 of the City's deposits with financia l institutions in excess of federal depository insurance limits was held in collatera lized accounts. As of June 30,2018, City investments in the following investment types were held by the same broker-dealer (counterparty) that was used by the City to buy the securities:

Investment Type

Mutual Funds- Ca l Trust

U.S. Treasury Notes

Federal Agency Securities

Medium Term Notes

Certificates of Deposit

Money Market Funds

Repurchase Agreements Guaranteed Investment Contracts

G. Investment in State Investment Pool

$

Reported

Amount

52,225,563

11,436,398

12,598,182

8,141,627

7,528,798

38,538,077

2,558,188 67,234,320

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the Califomia Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAJF for the entire LAIF p01tfolio (in relation to the amortized cost of that portfolio). The balance avai lable for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an am01tized cost basis.

53


June 30, 2018


H. Fair Value Measurements

The City categorizes its fair value measurements within the fair value hierarchy establish by accounting principles generally accepted in the United States of America. These principles recognize a three tiered fair value hierarchy as follows : Level 1 - Investments reflect prices quoted in active markets; Level 2- Investments reflect prices that are based on similr~r observable asset either directly or indirectly, which may include inputs in markets that are not considered active; and Level :3 - investments reflect prices based upon unobservable sources.

Total Assets at

Investment T~ee Fair Value

State Investment Pool (LAIF) $ 12,004,472

Mutual Funds - Cal Trust 52,225,563

U.S. Treasury Notes 11,436,398

Federal Agency Securities 12,598,182

Money Market Funds ·1,:20 I ,44'/

Merli11m Term N0tes 8,141,627

Certificates of Deposit 7,52~,79~

Guaranteed Investment Contracts 67,23t1,320

PARS Trust:

Money Market Funds 1,500,000

Held by Bond Trustees:

Money Market Deposits 29,836,630

Local Agency Bonds 6,005,000

Repurchase Agreements 2,558,188

Totals $218,270,625

NOTE 4- RECEIVABLES

A. Receivables

Level I

$

52,225,563

9,276,411

12,598,182

7,:20 I ,44'/

2,635,896

1,500,000

29,836,630

2,558,188

$ 117,832,317

Level2

$

2,159,987

5,505,731

67,234,320

6,005,000

$ 80,905,038

Level3

$

$

Exempt from

Disclosure

$ 12,004,472

7,528,798

$ 19,533,270

Accounts, taxes, interest, grants, and other receivable balances of the General, Special Revenue, Capital Projects, Debt Service, Proprietary, and Fiduciary Funds are stated net of allowances for uncollectible accounts. The following is a schedule of receivables at June 30, 2018:

Receivable Allowance Net

Governmental Activities

Accounts $ 258,883 $ $ 258,883 Taxes 2,636,927 2,636,927

IIIlt:t est 1,492,640 1,492,640

Grants 2,054,749 2,054,749 Others 513,539 513,539

Total Governmental Activities $ 6,956,738 $ $ 6,956,738

54


June 30, 2018

NOTE 4- RECEIVABLES (Continued)

A. Receivables (Continued)

The following is a schedule of receivables at June 30, 201 ~ (Continued)

Business-type Activities

Accounts

Interest

Others

Total Business-type Activities

Fiduciary Funds

Taxes

Interest

Total Fiduciary Funds

B. Notes Receivable

$

$

$

$

Receivable

27,027,661

34,211

1,560,419

28,622,291

27

454

481

Allowance

$ 4,704,861

$ 4,704,861

$

$

$

$

$

$

Net

22,322,800

34,211

1,560,419

23,917,430

27 454

481

The City administers a residential rehabilitation program, a commercial micro-enterprise program, and a First Time Home Buyer Program. A committee approves the loans, and the funds are disbursed to the contractor awarded the bid upon review of the building inspector, the administrating City, the homeowner and the City. The programs are designed to encourage . construction or improvement in low-to-moderate income housing or other projects. Under these programs, loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City' s terms . As ofFebrumy 1, 2012, notes receivable reported under the former redevelopment agency low and moderate income housing fund were transferred to the City successor agency housing fund . The balance of the City's loans receivable arising from these programs at June 30, 2018 is $16,866,214.

The Water Fund notes receivable consists of amounts due from homeowners for the installation of water lines and from new developers for the capacity fees. The balance ofthe notes receivable at June 30, 2018 for the Water Fund is $102,242 .

55


June 30, 2018

NOTE 5- INTERFUND TRANSACTIONS

A. lnterfund Receivables and Payables

During the course of norma l operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those re lated to goods and services type transactions are classifitu as "Jue lo and from other funds" .

The following presents a summary of current interfund balances at June 30, 2018:

Receivable Fund Amount P a~able Fund Amount

Major Fund: Nonmajor Specia l Revenue Funds: Genera l $ 2,051,417 2010 Earthquake $ 13,135

Recreation Projects 14,846

Totals $ 2 ,0 .~ 1,417 Gas Tax 106

Special Events 8,323

Development Impact Fees 222,321

Federal Highway Administration 1,606,856

Nonmajor Proprietary Fund: Solid Waste 185,830

Totals $ 2,051,417

B. Long-term Interfund Advances

Advances fi·om Successor Agency

The former Redevelopment Agency of the City of El Centro (former RDA) issued the Tax Allocation Bonds Series 201 1 C totaling $11 ,095,000 which were acquired by the El Centro Financing Authority prior to the dissolution of the former RDA on Februmy 1, 2012. The Financing Authority acquired the bonds at an approximate 85% discount of the par va lue totaling $9,413,455. However, instead of providing the bond proceeds to the former Redeve lopment Agency immediate ly, the City set up an advance payab le in the amount of the proceeds ($9,413 ,455) and premium of $1 ,681 ,545 due to the form er RDA . As the former RDA incurs rrojects costs, the City will make the pnymcnts to all vendors on behalf uf the former RDA and reduce the advance payable to the former RDA by that amount. The premium of advances will be ammiized over approximately 14.5 years. As of June 30, 2018, the outstanding balance for the premium of advances was $850,914. The advances from the Successor Agency have been reclassified as long-term debt. See Note 20 for additional information in ree;ards to the advances .

56


.Tune 30, 2018

NOTE 5- INTERFUND TRANSACTIONS (Continued)

C. Transfers between Funds

Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations, re-allocations of special revenues, debt service transfers to pay principal and interest payments on bonds, and other post employment benefits. All inte1fund transfers between individual government funds have been eliminated on the government-wide statements.

The following schedule briefly summarizes the City's transfer activity for the fiscal year ended June 30,2018:

Fund Transfers-in Transfers-out

Major Fund:

General $ 2,421,273 $ 1,714,368

Nonmajor Governmenta l Funds:

Gas Tax 898,273

Local Transportation Authority 1,330,603

L T A Lease Revenue Bonds Debt Service 1,307,603

Major Proprietary Funds:

Water 607,184 500,000

Wastewater 607,184 500,000

Tota ls $ 4,943,244 $ 4,943,244

57


June 30, 2018

NOTE 6- CAPITAL ASSETS

Capi ta l Asset act iv ity fo r the fisca l year ended Jun e 30, 20 18 was as fo llows:

Balance at Governmental activities: July I, 20 17 Additions Deletions Capita l asse ts, not being deprec iated:

Laml $ 2,346,L2L j, $ Co ns tru ction in progress 4,280,0% 5,.l:i0,:l05

Total cap ital asse ts, no t be in g deJJrecia ted 6,626,') I ~ 5,356,305

Ca pital assets , being deprec iated: lnfi·as tru ctu re 79,530,204 Structures and imp rove ment s 91,9 13,090 57,394 Ve hic les 7,767,249 192,000 Furniture, equipment , an d books 13,050,397 1,80 1,029 Total capita l assets being depreciated 192,260,940 2,050,423

Less accumu lated deprec iation to r: lnti·as tructure (55,792,92 1) (2,450,920) Stru ctures and in1p1uve1 1 1e 11 t ~ ( 42,846,624) (6,677,945) Ve hic les (6,603, 787) (456, 175) Furn iture, eq uipment, and boo ks ( 11,450,742 (47 1,0152 Tota l accumu lated deprec iation ( 11 6,694,074) ( 1 0,056,055)

Tota l cap ital asse ts, be in g depreciated net 75,566,866 (8,005,632)

OJ ve rn mental act iv ities cap ital asse ts , net $ 82, 193,784 $ (2,649,327) $

Balan ce at Busincss-tv(l!; activities (inc ludin :: Hosnital Fund): July I, 201 7 Additions Deletions Cap ital assets , not be in g depreciated :

Land and land improve ments $ 1,776,247 $

Co ns tru ction in prog ress 21,20 1,013 24,78 1,655 Tota l cap ital as sets . no t bein g dep rec iated 22,977,260 24,78 1,655

Cap it al asse ts , being dep rec iated: Structures and improve ments 215, 198,074 287,440 (355) Vehic les 2,171,697 42,6 17 Eq uipment __ 56, 700,791 .. __ I ,850,3 18 (71,348) Total ca pit al as sets. being dep rec iated 274,070,562 2, 180,375 (71.703)

Less accU IIIUiateJ depreciation tor: Structures and imp ro\'e ment s ( 11 9,33 1,1 58) (8, 778,587) Vehic les (1,7 14,964) (64,658) Eq uipment (4 1,29 1,59 1) (2,090,960) 76,02 1 Tota l acc umulated deprec iat ion ( 162,337,7 13) ( I 0,934,205) /6,01 1

Tota l Ca!Ji tJ I """do. uei ll g dq.Ji ec iut eu I lei . 1_~7~2~~"2.... (8,753 .830) 4.J 18

l:lus 111 ess -type ac ti vi ties capital asse ts. net $ 134,7 10,109 $ 16,027,825 $ 4,3 18

58

Dalance at Transfers Jun e 30, 20 18 -------

$ $ 2,346,222 (:i ,R44,774) \79?,777

(5,844, 724) 6, 138,499

79,530,204 5,844,724 97,815,208

7,959,249

14,851 ,426 5,844,724 200, 156,087

(58,243,84 1)

( 49,524,569)

(7,059,962) ( 11 ,92 1,757)

( 126,750, 129)

5,844,724 73,405,958

$ $ 79,544,457

Ba lance at Trans ters Jun e 30,2018

$ $ I ,776,247

(8,052,238) 37,930,430 (8,052.238) 39,706.677

7,252,777 222,737,936 2,2 14,3 14

799,461 59,279,222 8,052,238 284,23 1.472

( 128, I 09.745) ( 1,779,622)

( 43,306,53 0)

( 173, 195.897)

8.052.238 I I I.U:hJ 'I:J

$ $ 150,742,252


June 30, 2018

NOTE 6- CAPITAL ASSETS (Continued)

Depreciation

Depreciation expense was charged to governmental functions as follows:

General Government

Public Safety

Public Works


Parks and Recreation

$ 838,005

1,676,009

3,352,018

3,352,018

838,005

Total depreciation expense- govemmental activities $ 10,056,055

Depreciation expense was charged to business-type functions as follows:

Water

Wastewater

Hospital

Total depreciation expense- business-type activities

NOTE 7- COMMITMENTS

B. Operating Leases

$ 2,375,721

1,770,309

6,788,175

$ 10,934,205

The Hospital leases equipment that does not meet the criteria for capitalization and are classified as operating leases with related rentals charged to operations as incurred . The Hospital had no noncancelable operating leases at June 30, 2018. The Hospital has various leases where there is no specified term anJ rental expense is incurred on a month to month basis. Rental expense for all operating leases amount to $1,637,790 and $1,597,536 for the years ended June 30, 2018 and 2017, respectively .

59


June 30, 2018

NOTE 8- LONG-TERM LIABILITIES

The following is a schedule of long-term liabiliti es for Governmental Activities and Businesstype Activities for the fiscal year ended June 30, 2018:

Balance at Prior Period BalRnce at Due Within Ju!x I, 2017 Ad justrne nts Additions !Zeductions June 30,2018 One Year

Guvcrnmcnt:ll Activities:

Compensated ab~ence~ $ 2, 184,218 $ $ 912,002 $ (958,471) $ 2, 137,749 $ 928,931 Advances from Succe:.:.or Age ncy (see note 5) 9,~ 13,455 9,413,455

Unamortized premiums (see note 5) 966,903 (115,989) 850,914 11 5,989 Net Other post-employment benefits (see note 14) (3,908,799) 2,351,195 (I ,557,604) * Lease revenue bonds 11 ,505,000 (420,000) 11,085,000 460,000

Unamortized discount (166,139) 11 ,89 1 ( 154,248) (11,891) Revenue bonds 6,780,000 (775,000) 6,005,000 795,000

Unamortized discount (98,517) 11 ,8 18 (86,699) (11 ,818) Net pe nsion liability 37,653,97 1 11,636,154 (6,831 ,08TJ 42,459,038

Total $ 64,330,092 $ 2,35 1,195 $ 12,548,156 $ ~9 ,076,838) $ 70,152,605 $ 2,276,2 11

*Balance is presented as "Net OPEB Asset" in the Statement of Net Position

Balance at Prior Period Balance at Due Within

Jul~· 1,2017 Adjustments Additions Reductions June 30,2018 One Year B us incss-typc Activities:

Water Fund:

Compensated absences $ 212,199 $ $ 11 7,469 $ (93,147) $ 236,52 1 $ 93,147 Revenue bonds 30,130,000 (960,000) 29, 170,000 1,000,000 · Unamortized premium 2,297,542 (125,893) 2,171,649 125,893 Insta llment sa le 472,875 (89,068) 383,807 91,740 Net pension liability 1,948,922 510,006 (31 ,037) 2,427,89 1

Sewer Fund:

Compensated absences 275,871 88,507 ( 105,487) 258,891 105,487 Revenue bonds 19,395,000 (550,000) 18,845.000 565,000

Unamortized premium I ,888,405 (I 03 ,474) 1,784,931 103,474 Revenue refunding bonds (20 12A) 6,035,000 (475 ,000) 5,560,000 485,000

Unamortized discotmt ( 44,070) 4, 164 (39,906) ( 4, 164) lnstal~Jlent sa le 1,525,754 (235,878) I ,289,876 242,954 Net pension liability 2,407,505 487,254 104,4 15 2,999, 174

1-lusiJilal Fund:

Capital leases 4,738,042 3,608,1 I I (2,380,101) 5,966,052 2,669,537 Hospital revenue bonds 44,240,000 I ?.5,000,000 (44,240,000) 125,000,000

Unamortized discount (9,991 ,639) lj 1,632 (9,950,007) Net pension liability 38,946200 ----- .. ----- 9,362,500 (2,093,200) 46,215,500

Totn I $ 154,469,245 $ $ 12lJ, ll:IZ.:.WIJ $ (:> !JJ:L.0'/4) $ 2J2,J j 'J.J/l) $ ).4n .o6~J

60


June 30, 2018

NOTE 8- LONG-TERM LIABILITIES (Continued)

A. Governmental Activities- Lease Revenue Bonds Payable

Lease Revenue Bonds. On December 16, 2009, the City issued its $4,615,000 Lease Revenue Bonds 2009 Series A and $10,1 25,000 Lease Revenue Bonds 2009 Series B. The bond funds are to be used for the acquisition, construction, and installation of certain transportation-related improvements within the City. The Series A bonds have a stated interest rate from 2.00% to 4.625% and are payable over a period of twenty years maturing in fiscal year ending 2020. The Series B bonds have a stated interest rate of 8.250% and mature in the fiscal year ending 2032. The Lease Revenue Bonds maturing on or after October 1, 2020, are subject to redemption prior to maturity. The original issue discount on these bonds is being amortized over the life of the bonds and is included with long-term debt on the balance sheet. The principal balance outstanding at June 30,2018 is $10,930,752, which is net ofthe $154,248 ofunamOiiized original bond discount.

B. Govemmental Activities- Revenue Bonds Payable

On May 3, 2011, the El Centro Financing Authority issued the Revenue Bonds Series 201 1. The Bonds are being issued to (i) finance the acquisition of the Redevelopment Agency of the City of the City of El Centro, El Centro Redevelopment Project, Tax Allocation Bonds Series 2011 C, (ii) fund the Reserve Fund, and (iii) pay costs of issuing the Bonds and the Loca l Obligations. The Bonds have a stated interest rate from 6.000% to 6.625% and have a maturity date of November 1, 2025. The original issue discount on these bonds is being amortized over the life of the bonds and is included with long-term debt on the balance sheet. The principal balance outstanding at June 30,2018 is $5,918,301, which is net ofthe $86,699 of unamortized original bond discount. See Note 20 for additiona l information in regards to the Bonds.

C. Governmental Activities- Long-Term Debt Amortization

The annual requirements to amOiiize long-term debt outstanding at June 30, 2018 (other than compensated absences, advances from successor agency, and other post-employment benefits) are as follows :

Fiscal Year 2009 Series A Lease Revenue Bonds

Ended June 30, Princi~al Interest Tota l

2019 $ 460,000 $ 33,245 $ 493,245

2020 500,000 11 ,563 511,563

960,000 44,808 1,004,808

Less bond discount (343) (343)

$ 959,657 $ 44,808 $ 1,004,465

61


June 30, 2018

NOTE 8 - LONG-TERM LIABILITIES (Continued)

c. Governmental Activities- Long-Term Debt Amortization (Continued)

Fiscal Year 2009 Series B Lease Revenue Bonds Ended June 30, PrinciEal interest Total

2019 $ $ 835,312 $ 835,312 2020 835,313 835,313 2021 550,000 812,625 1,362,625 2022 605,000 764,982 1,369,982 2023 650,000 713,213 1,363,213

2024-2028 4,010,000 2,650,312 6,660,3 12 2029-2032 4,310,000 740,024 5,050,024

I 0,125,000 7,351,781 17,476,781 Less bond discount (153,~05) (153,905)

$ 9,971,095 $ 7,351,781 $ 17,322,876

Fiscal Year Series 2011 Revenue Bonds Ended June 30, PrinciEal Interest Total

2019 $ 795,000 $ 353,262 $ 1,148,262 2020 820,000 304,812 1,124,812 2021 840,000 255,012 1,095,012 2022 860,000 204,01 2 1,064,012 2023 675,000 155,853 830,853

2024-2026 2,015,000 199,91 1 2,2 14,9 11

6,005,000 l ,477.,8()? 7,477,/1,()2

Less bond discount (86,699) (86,699)

$ 5,918,301 $ 1,472,862 $ 7,391,163

Fiscal Year Total Governmental Activities

Ended June 30, PrinciEal Interest Total

2019 $ 1,255,000 $ 1,221,819 $ 2,476,8 19

2020 1,320,000 1,151,688 2,471,688 2021 1,390,000 1,067,637 2,457,637 2022 1,465,000 968,994 2,433,99/1

2023 1,325,000 869,066 2,194,066

2024-2028 6,025,000 2,850,223 8,875,223

2on-2032 4,310,000 740,024 5,050,024

17,090,000 8,869,4'i 1 ?. 'i ,9'i9,4'i 1


$ 16,849,053 $ 8,869,451 $ 25,7 18,504

62


June 30, 2018

NOTE 8- LONG-TERM LIABILITillS (Continued)

D. Business -type Activities- Revenue Bonds

2012 Wastewate1· Revenue Refunding Bonds Series A. On February 16, 2012 the City issued its $7,835,000 Wastewater Revenue Refunding Bonds (par va lue).

The proceeds of the sale of the Wastewater Refunding Bonds will be used to refund all of the outstanding portion of the 1997 Series A Water and Wastewater Revenue Bonds, fu nd a reserve account for the bonds, and pay costs of issuance.

The City advance refunded the 1997 Series A Water and Wastewater Revenue Bonds to reduce its total debt service over the next sixteen years by $964,302 and to obtain an economic gai n (difference between the present values of the debt service payments on the old and new debt) of $7 19,153.

The City has covenanted and agreed to fix, prescribe, and col lect rates, fees and charges for the Water Service and the Wastewater Service so that net revenues are at least 1.15 times the installment purchase payments of the 2012 bonds and all parity of obligations due and payable in the fiscal year following the date of such calculation.

The bonds have a stated interest from 2.00% to 3.625% and are payable over a period of 16 years maturing in 2028. Total pledged revenues for the Wastewater Fund were $9,762,827 whi le principal and interest payments for the year totaled $475,000 and $180,030 respectively. The principal balance outstanding at June 30, 2018 is $5,520,094, which is net of the $36,906 of unamortized original bond discount.

2014 Series A Wate1· and Wastewater Revenue Bonds. On June 21, 2014, the City issued its . $31,980,000 (par value) Water Revenue Bonds, 2014 Sc:;ries A and $20,450,000 (par val ue) Wastewater Revenue Bonds, 2014 Series A.

The proceeds of the sale ofthe Water and Wastewater Revenue Bonds was used to refund <lll of the outstanding portion of the 2006 Series A Water and Wastewater Revenue Bonds, fund a reserve account for the bonds, and pay costs of issuance .

The City has covenanted and agreed to fix, prescribe, and collect rates and charges for the Water Service and the Wastewater Service so that net revenues are at least 1.15 times the installment purchase payments of the 2014 bonds and all parity of obligations due and payable in the Certificate Year following the date of such calcu lation.

The bonds have a stated interest from 2.00% to 5.00% and are payable over a period of20 years maturing in 2036. Total pledged revenues for the Water and Wastewater Funds were $8,794,393 and $9,762,827 respectively while principal and interest payments for the year totaled $1,5 10,000 and $2,079,106 respectively. The principal balance outstanding at June 30, 2018 is $47,980,186, which includes $3,956,580 of unamortized original bond premium and net of $3,99 1,394 of unamortized deferred loss on refunding.

63


June 30,2018


F. Business-type Activities- Installment Sale Payable

2003 Enterprise Fund Installment Sale. On December 17, 2002, the City entered into an agreement with the California Infrastructure and Economic Development Bank to sell water and wastewater bonds, the bonds were issued on March 18, 2004.

The proceeds from the issuance of these uuJH.ls, $5,880,100, were tlsed to fund the Alder water/sewer project.

The City has covenanted and agreed to fix, prescribe, and collect rates, fees and charges for the Water Service and the Wastewater Service so that net revenues are at least 1.10 times the installment purchase payments of the 2003 bonds and all Debt Service obligations due and payable in the fiscal year.

The bonds have a stated interest rale of 3.00% and are payable over a period of twenty years maturing in 2022. The 2003 Enterprise bonds maturing on or after October 1, 2014, are subject to redemption prior to maturity. The principal balance outstanding at June 30, 2018 is $1,673,683.

G. Business-type Activities- Hospital Long Term Debt

EI Centro Financing Authority Insured Hospital Revenue Bonds, Series 2015. On March 12, 2015, the Medical Center issued $50,000,000 of El Centro Financial Authority Insured Medical Center Revenue Bonds, Series A and B, at rates of 3.05% per annum for Series A and the London Interbank Offered Rate ("LIBOR")-based rate for Series B to refinance the bond Series 200 I, pay down the outstanding notes payable balance and to finance the construction of the Medical

·Center's expansion project. These bonds have been paid in· full with proceeds from the issuance of the Series 2018 bonds.

El Centro Financing Authority Tnsurecl Hospital Revenue Refunding Bonds, Series 2018. On April 4, 20 I 8, the Hospital issued the El Centro Financing Authority Hospital Revenue Refunding Bonds, Series 2018, in the principal amount of$ I 25,000,000 and an original discount of $9,991,639. Proceeds of the bonds were used to pay in full the Series 2015 A and 8 Bonds, fund a bond reserve account, fund capitalized interested on the Series 2018 bonds, and pay issuance costs of the Series 2018 bonds. Proceeds will also be used to finance capital improvements to the Medical Center. Principal payments are due annually on July I, beginning in 2022 and through 2058, in amounts ranging from $1,175,000 to $7,650,000. Interest payments are due semiannually on July I and January I, beginning in 2018 and through 2058, at 4.50% to 5.75%. The current refunding resulted in nn economic loss of $7,437,5 I 8 and an increase in cash flows to service debt related to the refunding of$82,676,039.

The Hospital has pledgeci futme revenues to secure payment of the principal of, redemption price of, and interest on the Series 2018 bonds in accon.lalll:e with their agreed-on terms and provisions. Kevenues are defined in the agreement as all revenues, income, receipts, and money received in a11y IJeriud by the llospita l (other than casualty ins11r::Jnce, donor-restricted gifts, grants, bequests, donations, contributions, and tax revenues, if any). Principal anci interest ::1 mounts depos ited for debt services on the bonds are expected to require approximately 5% of revenues annually. There were no principal or interest deposits required Juri11g the fiscal year ended June 30, 2018, and total revenues as defined in the agreement were $157,636,689.

64


June 30, 2018


H. Business-type Activities- Capital Leases Payable

Capital Leases. The Hospital has various equipment capilallt:ases. The lease obligation will be repaid in monthly installments of principal and interest with various maturity dates between April 2019 and August 2023. These leases are secured by related equipment purchased or restricted cash balances.

During the year ended June 30, 2016, the Hospital entered into capital leases totaling approximately $5,000,000. At June 30, 2018, the remaining dollar amount available for future equipment purchases was approximately $2,684,000. This amount is invested in cash and cash equivalents and is included in restricted cash in the accompanying statements of net position.

During the fiscal year ended June 30, 2018, the Medical Center entered into the GE Lease B totaling $3,000,000. At June 30, 2018, the remaining dollar amount available for future equipment purchases was approximately $1,601,000. This amount is invested in cash and cash equivalents and is included in restricted cash in the accompanying statement of net position.

The Medical Center leases equipment that does not meet the criteria for capitalization and are classified as operating leases with related rentals charged to operations as incurred. The Medical Center also has several non-cancelable operating leases for various equipment that expire over the next three years. The Medical Center also has various leases where there is no specified term and rental expense is incurred on a month to month basis. Rental expense for all operating leases amounted to approximately $1,637,790 and $1,597,536 for the fiscal years ended June 30,2018 and 2017, respectively.

Lease commitments on these leases, including interest, are as follows:

Fiscal

Year Ending

June 30, PrinciEal

2019 $ 2,875,789

2020 1,142,174

2021 818,431

2022 764,172

2023 709,912

2024 127,603

Total minimum lease payments 6,438,081

Less amount representing interest (472,029)

Present value of minimum lease payments $ 5,966,052

65


June 30, 2018


I. Business-type Activities -Long-Term Debt Amortization

The annual requirements to amortize long-term debt outstanding at .June 30, 201 R (other than compensated absences and net pension liability) are as follows:

Fiscal Year 2014 Series A Water Revenue Bonds Ended June 30, Princi~al Interest Total

2019 $ 1,000,000 $ 1,191,606 $ 2,191,606 2020 1,040,000 1,150,806 2,190,806 2021 1,075,000 1,108,506 2,183,506

2022 1,125,000 1,064,506 2,189,506 2023 1,305,000 1,009,381 2,314,lR1

2024-2028 7,560,000 4,038,845 11,598,845

2029-2033 9,465,000 2,119,377 11,584,377

2034-2036 6,600,000 350,595 6,950,595

29,170,000 12,033,622 41,203,622

Plus bond premium 2,171,649 2,171,649

$ 31,341,649 $ 12,033,622 $ 43,375,271

Fiscal Year 2014 Series A Wastewater Revenue Bonds

Ended June 30, Princi~al Interest Total

2019 $ 565,000 $ 836,375 $ 1,401,375

2020 585,000 816,200 1,401,200

2021 610,000 792,300 1,402,300

2022 635,000 767,400 1,402,400

2023 665,000 738,075 1,403,075

2024-2028 4,945,000 3,012,125 7,957,125

2029-2033 6,320,000 1,612,750 7,932,750

2034-2036 4,520,000 240,975 4,760,975

18,845,000 8,816,200 27,661,200

PIus bond premium 1,704,931 1,784,931

$ 20,629,931 $ 8,816,200 $ 29,446,131 ... .. . -···-··.

66


June 30, 2018


I. Business-type Activities- Long-Te1·m Debt Amo1·tization (Continued)

The annual requirements to amortize long-term debt outstanding at June 30, 2018 (other than compensated absences and net pension liability) are as follows (Continued):

Fisca l Year 2012 Series A Wastewater Refunding Bonds Ended June 30, Princieal Interest Total

2019 $ 485,000 $ 168,030 $ 653,030

2020 500,000 168,030 668,030

2021 510,000 143,093 653,093

2022 525,000 128,843 653,843

2023 540,000 112,328 652,328

2024-2028 3,000,000 271,670 3,271,670

5,560,000 991,994 6,551,994

Less bond discount (39,9062 (39,906)

$ 5,520,094 $ 991,994 $ 6,512,088

Fiscal Year 2003 Installment Sa le -Water

Ended June 30, Princi~al Interest Tota l

2019 $ 91,740 $ 11,514 $ 103,254

2020 94,492 8,762 103,254

2021 97,327 5,928 103,255

2022 100,248 3,008 103,256

$ 383,807 $ 29,212 $ 413,019

Fiscal Year 2003 Installment Sa le - Wastewater

Ended June 30, Princieal Interest Total

2019 $ 242,954 $ 35,052 $ 278,006

2020 250,243 27,654 277,897

2021 257,750 20,034 277,784

2022 265,482 12,186 277,668

2023 273,447 4,102 277,549

$ 1,289,876 $ 99,028 $ 1,388,904

67


June 30, 2018

NOTE 8 - LONG-TERM LIABILITIES (Continued)

I. Business-type Activities- Long-Term Debt Amortization (Continued)

The annual requirements to amort ize long · term debt outstanding at June 3 0, 2018 (other than compensated absences and net pension liability) are as follows (Continued):

Fisca l Year Hos~ital Revenue Bonds, Series 2018

Ended June 30, Pr incipa l Interest Total

20 19 $ $ 6,915,312 $ 6,915,312

2020 6,915,312 6,915,312

2021 6,915,312 6,915,312

2022 1,175,000 6,915,312 8,090,3 12

?..023 1,230,000 6,862,437 8,092,437

2024-2028 7,030,000 33,430,185 40,460,185

2029-2033 8,865,000 31,592,860 40,457,860

203<1-2038 11,565,000 28,891,3 10 40,456,3 10

2039-2043 15,115,000 2:),341,610 40,456,6 10

2044-2048 19,755,000 20,701,81 0 40,456,810

2049-2053 25,950,000 14,508,399 40,458,399

2054-2058 34,315,000 6,139,273 40,454,273

125,000,000 195,129,132 320,129,132

Less bond discount (9,950,007) (9,950,007)

$ 115,049,993 $ 195,129,132 $ 310,179,125

Fisca l Year CaE ita l Leases Pa~able

Ended June 30, Princiea l Interest Total

2019 $ 2,669,537 $ 206,252 $ 2,875,789

2020 1,056,030 86,144 1,142,174

2021 758,289 60,142 818,43 1

2022 705,717 58,455 764,172

2023 654,168 55,744 709,912

2024 122,3 11 5,292 127,603

$ 5,966,052 $ 472,029 $ 6,438,081

68


June 30, 2018


I. Business-type Activities- Long-Term Debt Amortization (Continued)

The annual requirements to amortize long-term debt outstanding at June 30, 2018 (other than compensated absences and net pension liability) are as follows (Continued):

Fiscal Year Total Business-tyee Activities


2019 $ 5,054,231 $ 9,364,141 $ 14,418,372

2020 3,525,765 9,172,908 12,698,673

2021 3,308,366 9,045,315 12,353,681

2022 4,531,447 8,949,710 13,481 ,157

2023 4,667,615 8,782,067 13,449,682

2024-2028 22,657,311 40,758,117 63,415,428

2029-2033 24,650,000 35,324,987 59,974,987

2034-2038 22,685,000 29,482,880 52,167,880

2039-2043 15,115,000 25,341,610 40,456,610

2044-2048 19,755,000 20,701,810 40,456,810

2049-2053 25,950,000 14,508,399 40,458,399

2054-2058 34,315,000 6,139,273 40,454,273

186,214,735 217,571,217 403,785,952

Plus bond premium 3,956,580 3,956,580

Less bond discount ~9,989,913} (9,989,913)

$ 180,181,402: $ 217,571,217 $ 397,752,619

NOTE 9- RISK MANAGEMENT

The City is exposed to various ri sks of loss related to workers' compensation claims, torts, the theft of, damage to, and destruction of assets, errors and omission, natural disasters, and group health insurance claims. To deal with these ri sks, the City has adopted a formal risk management program. As part of this program, various risk control techniques, including employee accident prevention training, are being implemented to minimize accident-related losses. An integral part of the program, however, continues to be insuring arrangements.

A. Description of Self-Insur·ance Pool Pursuant to Joint Powers Agreement

The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 119 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 Authority 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.

Audited financial statements for the Authority are available from Finance Director, at California Joint Powers Insurance Authority, 8081 Moody Street, La Palma, California 90623.

69


June 30, 2018

NOTE 9- RISK MANAGEMENT (Continued)

B. Self-Insurance Programs of the Authority

Each member pays an annual contribution to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period. After the close of the coverage period, outstand ing claims are valued. A retrospective deposit computation is then conducted annually thereafter until al l claims incurred during the <.;OVt!rage period are dosed on a pool-wide basis. This subsequent cost re-allocation among members based on actual claim Jeveloplllent can result in adjustments of either refunds or additional deposits required.

The total funding requirement for self-insurance programs is estimated using actuarial models and pre-funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below.

Liabi lity

In the liability program claims are pooled separately between police and non-police exposures. ( 1) The payro ll of each member is eva luated 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 $30,000 for each occurrence and is eva luated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is eva luated as a percentage of the pool's tota l incurred costs within the second layer. (4) Incurred costs in excess of $750,000 up to the reinsurance attachment point of $5 million are distributed based on the outcome of cost al location within the first and second loss layers. (5) Costs of covered claims from $5 million to $ 10 million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. The $2.5 million annual aggregate deductible is fully covered under a separate policy; as such no portion of it is retained by the Authority. Costs of covered claims from $10 million to $ 15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deductible. The $3 .0 million annua l aggregate deductible is fully retained by the Authority . (6) Costs of covered claims from $15 million to $20 million are paid under reinsurance agreements. (7) Costs of covered claims from $20 million to $50 million are paid under excess insurance pol icies.

The overall coverage limit for each member including all layers of coverage is $50 million per occurrence.

Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub-limit of $30 million per occurrence. This $30 million subsidence sub-limit is r.nrnpnsed nf(il) $:i million retained \:Vithin the pool's SIR, (b) $15 million in reinsurance, subject to the same annual aggregate deductibles previously stated, and (c) $10 million 1n excess insurance. The excess insurance layer has a $10 miltiou annua l aggregate limi t.

Payments to the Authority tor property r~nrl casua lty coverage are recorded as expenditures in the Generrd Fnnrl.

70


June 30, 201~


B. Insurance Programs of the Authority {Continued)

Workers Compensation

In the workers' compensation program claims are pooled separately between public safety (police and fire) and non-public safety exposures. (!)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 fonmila. (2) The first layer of losses includes incurred costs up to $50,000 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 $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $2 m iII ion up to statutory I im its are paid under a reinsurance policy. Protection is provided per statutory liability under California Workers' Compensation Law.

Employer's Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer's Liability losses from $5 million to $10 million are pooled among members.

The City is responsible for workers' compensation claims incurred before July I, 1997, under its self-insured program. Estimated unpaid claims reflect the maximum probable outcome of all claims without regard to the City's self-insured retention level. Reserves are assessed for indemnity, medical , and expense categories. Indemnity claims are estimated 011 the basis of computations, which will develop the probable total future cost of compensation and med ical benefits due or potentially due. Medical-only claims are estimated on the basis of computations, which will develop the total future cost of medical benefits due or potentially due. Liability estimates are not reduced for third party recoveries, subrogation recoveries, or aggregate excess msurance coverage.

Payments for workers' compensation coverage are recorded as an expense to Workers' Compensation Internal Service Fund. Changes in workers' compensation liability for the current and past two fiscal years are as follows:

Balance at Current Year Balance at

Beginning of Claims and End of

Fiscal Year Changes in Claim Fiscal Year

Fiscal Years Liabili~ Estimates Pa~ments Liability

2015-16 $ 51,076 $ 1,019,395 $ (951 ,285) $ I 19,186

2016-17 119,186 960,718 (973,209) 106,695

2017-18 106,695 911,580 (925,755) 92,520

71


June 30, 2018

NOTE 9 - RISK MANAGEMENT (Continued)

B. Insura nce Programs of the Authority (Contin ued)

Pollution Legal Liability Insurance

The City participates in the pollution legal liability insurance program (formerly ca lled env ironmcntR I insnnmce) whi ch is available through the Authori ty. The policy covers sudden and gradu al pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a c laim ~-mad e ba~ i s . There is n $5 0,000 deductibl e. The Authority has a limit of $5 0 million for the 3-year period from July 1. 201 6 through July 1, 201 9. Each memher of the Authority has a $10 million sub-limit during the 3-year term of the po licy.

Property Insurance

The City participates in the all -risk property protection program of the Authority. Thi s in s ~~rR n c:e protecti on is underwritten by several in surance compani es. City of El Centro property is currently in su red according lu a schedule of covered property submitted by the City of El Centro to the Authority. City of El Centro property currently has all -risk property insurance protection in the amount of $45,057,283. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annu ally and are not subj ect to retrospective adjustn1e11ls.

Crime Ins urance

The City purchases crime insurance coverage in the amount of $3,000,000 with a $2,500 deductible. The fid elity coverage is provided through the Authori ty. Premiums are pa id annually and are not subj ect to retrospective adjustments.

Spec ial Event Tenant User Liability Insurance

The City further protects ilf;Rinst liability damages by requi ring tenant users of certa in property to purchase low-cost tenant user li ability insurance for ce rtain activiti es on age ncy property. The ins urance premium is paid by the tenant user and is paid to th e City according to a schedule. The City then pays for the insurance. The insurance is arranged by the Authority.

The City did not purchase Earthquake and Flood Insurance.

During the past three fisca l years, none of the above programs of protecti on experienced settl ements or judgments that exceeded pooled or insured coverage . There were also no significant reductions in poo led or insured liabili ty coverage in 2017-·20 18.

C. Additional Insurance Programs

Group Health Insurance

Tl1 c "Risks of Loss" to the City under th e City sponsored group health insurance plans include m~j o r medi cal, dental, and vision claims. Prior to A "8l1 St I, 1999, the City contracted with Pac ifi c Mutual Insurance Company for a fully insured plan for medical and Jental coverage.

On August I, 1999, the City implemented a se lf-funded plan prov iding for th e same benefits as the Pac ific Mutual plan. The City's li abili ty is limited to $ 100,000 per employee with an overall cap of 125% of projected med ica l clai ms and I 00% of denta l and vision claim s.

72


June 30, 2018


C. Additional Insurance Programs (Continued)

Group Health Insurance (Continued)

The Hospital self-insures against medical costs for its employees and dependents. The Hospital has purchased supplemental coverage for losses in excess of $175,000 per incident and $2,000,000 in aggregate. The related liability is reported in accounts payable and accrued expenses on the statement of net position

The Hospital's accrued health insurance losses also include an estimate of possible losses attributable to incidents that may have occurred but not been identified under the incident reporting system. Historically, the actual liabilities incurred have not been materially different than the recorded estimates.

Workers' Compensation Self-Insurance

The Hospital self-insures against workers' compensation losses. The related liability is reported in accounts payable and accrued expenses on the statement of net position. Losses from asserted and unasse1ied claims identified under the Hospital's incident reporting system are accrued based on estimates that incorporate the Hospital's past experience, as well as other consideration including the nature of each claim or incident and relevant trend factors. Historically, the actual losses incurred have not been materially different than the recorded estimates. The amount of liability recorded for Workers' Compensation in 2017-18 was $2,555,221 and the amount recorded as liability in 2016-17 was $2,210,439 which resulted in a net increase in accrued liabilities between the fiscal years end June 30, 2018 and the fiscal year ended June 30, 2017 of $344,782.

Medical Malpractice Insurance Coverage

The Hospital maintains medical malpractice insurance on a claims-made basis. The policy provides for a per claim deductible of $5,000 with per occurrence coverage of $20 million and aggreg<1te nnnual coverage limits of $30 million. In management's opinion, the Hospital has sufficiently accrued an estimated liability for claims incurred prior to June 30, 2018 that are expected to be subsequently reported to the insurance company. The related liability is repOiied in accounts payable and accrued expenses on the statement of net position.

NOTE 10- PROPRIETARY FUNDS INFORMATION

The City maintains five enterprise funds. The Water and Wastewater funds account for the provision of basic utility services to all citizens. The Transit fund provides demand-response transit services. The Solid Waste fund accounts for trash collection throughout the City. The Hospital is an acute care facility providing health care to the community and surrounding area.

NOTE 11- CONTINGENT LIABILITIES

Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government and the State of California. Any di sa llowed claims, including amounts already collected, may constitute a liability of the applicable fund s. The amount, if any, of expenditures which may be disallowed by grantors cannot be determined at this time although the City expects such amounts, if any, to be immaterial.

There are pending lawsuits involving complaints and cross complaints with the City involving performance of action and for damages incurred but a dec ision/sett lement has not been reached .

73


June 30, 2018

NOTE 11- CONTINGENT LIABILITIES (Con tinued)

The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of management, that the ultimate disposition of these lawsuits and proceedings will not have a material adverse effect on the financial condition of the City.

Malpractice, workers' compensation, and medical benefits claims have been assetied against the Hospital by various claimants . The claims are in various stages of processing and some m<ly ultimately be brought to trial. There arc also known incidents th at have occurred through June 30, 201 4, that may result in the assetiion of additional cla ims. The Hospital management has accrued their best estimate of these contingent losses.

With changes now made to the pilot and pennanent RAC (Recovery Audit Contractor) program, it is expected that RAC program review activities will resume by early next year. It is poss ible the Hospital has a contingent repayment liability for claims not prev iously rev iewed. However, the Hospital has not received any notice from either the pilot RAC or the new permanent RAC regarding any intent to resume a RAC audit.

The hea lth care industry is subj ect to num erons laws and regulat ions of federal, state, and loca l governments. Compliance with these laws and regul ations (;au be subj ect to government review and interpretation, as well as regulatory actions unknown and unasserted at this time. Over the last several years, government activity has increased with respect to investigations and allegations concerning poss ible v iolations of regulations by health care providers which could result in the impos ition of significant fines and penalties as well as s ignificant repayment of previously billed and co llected revenue for patient services . Other than the issue d iscussed above, Hospita l's management believes that the Hospital is in substantial compli ance w ith current laws and regulations and that any potential liability arising from compli ance issues have been properly refl ected in the fin anc ial statements or are not considered to be material to the Hospital' s fin ancial · pos ition and results of operations as of and for the fisca l year ended June 30, 2018 .

The Medicare and Medi-Cal governrnenl reimbursement programs account fo r a substantial amount of the Hospital' s net patient service revenue. Expenditure reduction efforts and budget concerns within the U nited States and Ca lifornia legis lature continue to create uncertainty over the vo lume of future health care fundin g. It is at least reasonably poss ible that future reimbursements for patient services under these programs could be negative ly impacted.

NOTE 12 -NET PATIENT REVENUE

The Hosp ital has arrangements with third-party payors that prov ide payments to the Hospital at amounts d ifferent fro m ils es tablished rates. A summaty of the bas is of re imbursement with maj or third-party payor categories follows:

Medicare - Inpatient ac..:u le-care serv ices rendered to Medicare program beneficiaries are paid at prospectively determ in ed rates per discharge . These rates vary according to a pat ient class ificat ion system that is based on clinical , di agnostic, and other factors . Med icare re imburses the Company for covered outpatient services rendered to Medicare beneficiari es by way of an outpatient prospective payment system based on ambulatory payment class ifications.

74


June 30, 2018

NOTE 12- NET PATIENT REVENUE (Continued)

Medicare (Continued)

Inpatient non-acute serv ices, certain outpatient services, and defined capital costs related to Medicare beneficiaries are paid based, in part, on a cost reimbursement methodology. The Company is reimbursed for cost reimbursable items at a tentative rate with final settlement determined after submission of annual cost reports and audits thereof by the Medicare fiscal intermediary. The estimated amounts due to or from the program are reviewed and adjusted annually based on the status of such audits and any subsequent appeals. Differences between final sett lements and amounts accrued in previous years are repmted as adjustments to net patient service revenue in the year examination is substantially completed. Effective January I, 20 14, inpatient services rendered to Medi-Cal program beneficiaries under a diagnostic related group (DRG) methodology. Under this methodology, similar to Medicare, services are paid at prospectively determined rates per discharge according to a patient classification system that is based on clinical, diagnostic, and other factors.

Medi-Cal - Inpatient services rendered to Medi -Cal program beneficiaries are reimbursed under noncontracted payment arrangements. The Hospital is reimbursed using a cost reimbursement methodology. Interim payments are based on a cost to charge ratio with final settlement determined after submission of annual cost reports and audits thereof by the Depattment of Health Care Services ("DHCS"). The estimated amounts due to or from DHCS are reviewed and adjusted annually based on the status of such audits and any subsequent appeals. Differences between final sett lements and amounts accrued in previous years are rep01ted as adjustments to net patient service revenue in the year examination is substantially complete.

Net Medicare and Medi-Cal program patient service revenue amounted to approximately $114,069,000 and $90, 163,000, in fiscal years 2018 and 2017, respectively. In fiscal years 2018 and 20 17, the Hospital recognized in the statements of revenue, expenses, and changes in net position, an increase of approximately $2,162,000 and $969,000, respectively, in net patient service revenue pertaining to the settlement of prior years' cost reports.

Commercial Insurance, Health Maintenance Organizations, and Preferred Provider Organizations - The Company has also entered into agreements with certain commercial insurance carriers, health maintenance organizations, and preferred provider organizations. The basis for payment to the Company under these agreements includes prospectively determined rates per discharge, discounts from establi shed charges and prospectively determined daily rates.

Other - The Company also provides its services to patients enrolled in programs of commercial insurance carriers, health maintenance organizations and preferred provider organizations under which the Company does not have agreements. The Company recognizes revenue for these patients based on its usual customary rates for these services adjusted for historical trends in the Company's reimbursement for simi lar services.

Laws and regulations governing the third party payor arrangements are extremely complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change by a material amount in the near term.

75


June 30, 2018

NOTE 12- NET PATIENT REVENUE (Continued)

Significant concentrations of gross patient accounts receivable at June 30 were as follows:

Medicare

Medi-Ca l Commercial il nrl other

Se lf pay

Gross patient accounts receivable

Less: Allowances for contractual and bad

debt adjustments

Net patient accounts receivable

2018

$ 42,420, I 35

45,602,632

21,891,723

5,132,579

115,047,069

(95,985,607)

$ 19,061,462

2017

$ 28, 152,G12

41,934,027

13,767,043

6,905,967

90,759,649

(75,933,269)

$ 14,826,380

Significant concentrations of gross patient accounts rece ivab le at June 30, 2018 and 2017 include Medicare, 37% and J 1%, respectively, and Medi-Cal, 40% and 46%, respectively.

At June 30, 2018 and 2017, the Medical Center provided allowances for losses on accounts receivable directly from patients totaling $95 ,985 ,607 and $75,933,269, respectively . Amounts written off to bad debt expense included in net patient service revenue totaled approximately $9,280,452 and $8,146,301 for the fiscal years ended June 30, 2018 and 2017, respectively. Allowances for contractual adjustments included in net patient service revenue tota-led approximate ly $584,759,523 and $538,880,605 for the fiscal years ended June 30, 20 18 and 2017 respectively.

NOTE 13- DEFERRED COMPENSATION PLAN

The City offers its employees a deferred compensation program created in accordance with Interna l Revenue Code Section 457. The program, avai lab le to all fu ll -t ime City employees at their option, permits patiicipants to defer a potiion of their sa lary until future years. The deferred compensation is not available to patiicipants until termination, retirement, death, or unforeseeable emergency.

All amounts of compensation deferred under the program, all property and rights purchased with those amounts, and all income attributable to those amounts, propetiy or rights are held for the exclusive benefit of the patiicipants.

76

CI'"fY OF EL CENTRO NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2018

NOTE 14- OTHER POST EMPLOYMENT BENEFITS (OPEB)

Plan Description

The postemployment benefit plan is a single-employer defined healthcare plan admin istered by the City. The City provides postretirement health, dental, vision, arid life insurance benefits, as provided for in various collective bargaining agreements for retirees that meet certain criteria. The City pays 100 percent of the employee's premium for benefit coverage for qualifYing management employees and elected & contract employees until age 65 and a portion of the employee's premium for qualifYing non-management emp loyees. These costs are typically liquidated in the General Fund. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans .

Eligibility

The table below presents a summary ofthe basic participant information for the active and retired participants covered under the terms ofthe Plan.

Number of Covered

ParticiJ.lants 1 o Inactives cunently receiving benefits 55

Ia Inactives entitled to but not yet receiving 34 benefits

liJ Active employees 226

lm Total 315

Annual OPEB Cost and Net OPEB Obligation

For the fisca l year ended June 30, 2018, the total contribution made was $303,682. fifty-five retired emp loyees received OPEB benefits during the fisca l year.

Net OPEB Liability

T he District's net OPEB liability was measured as of July 1, 20 17, and the total OPEB liability used to calculate the OPEB liability was determined by an actuaria l valuation as of July I, 2017.

Actuarial Method and Assumptions The total OPEB liability in the July 1, 2017 actuarial va luation was determined using the following actuarial assumptions, app lied to all periods included in the measurement, unless otherwise specified:

77


June 30, 2018

NOTE 14- OTHER POST EIVIPLOYMENT BENEFITS (OPEB) (Continued)

Net OPEB Liability (Continued)

Actuarial Method and Assumptions (Continued)

Actunrial Assumption June 30, 2017 Mcasm~emcnt D:lte ~ Actuarial Valuation Date 11 Jtme 30, 2017 u Contribution Policy 1.'1 City contributes fnll ADC

1:1 Disconnt Rate 11:1 :'i .50°/o at June 30, 2017

a 5.50% at Jnue 30, 2016 a Expected City contributions projected to keep

sufficient plan assets to pay all benefits fi:om trust.

m General Inflation Ill 2.75% per annum m Mortality, Retirement, t! CalPERS 1997-2015 Experience Study

Disability, Tem1ination

Iii Mort:1lity Impr<WP.ment ;ll T'v{ort<dity proj ected ti1lly ge11 enltional wi th Scale MP-17

Actuarinl Assumption June 30, 20171\Iensurement Date m Salary Increases Ja Aggregate- 3.00%

D ~Jeri! - CalPERS 1997-201 5 Experience Stu ely

a :tvfeclic<ll Trend I!! Non-Medicare - 7,5% for 2019, decreasing to an ultimate r<Jte of 4 .0% in 2076 and l<Jter years

J:l rvieclicme - 6.5% for 2019, decreasing to an ultimate rate of 4.0% in 207 6 rmcllater years

r---:-- ..... _ ... - -·- - ·-m DentaliVision Increases iJ 2.75%

fll Cap Increases fa Cost Sharing- Increases by 50% of the % premium increCJse starting in 2019

11 Healthcare participation 11 At retirement: 90%

m No cap reduction at age 65: 100% !1:1 Reduced cap at age 65: 90%

Ill $0 cap at ::~ge 65: 5 0~·'0

Ill Self-paying Council: 40%

78


June 30, 2018

NOTE 14- OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)

Change in Net OP EB Liability

Total OPEB Fiduciary NetOPEB ....

Liability K et Position Liability 11 Balance at 6/30/17 $ 60675, 171 $ 8,060,935 $(1 ,385)64)

( 6/30/16 measurement date.) s Changes for the year

o Service Cost 284,618 - 284,618 • Interest 374,437 - 374,437 o Benefit changes -· - -o Actual vs. expected expelience - - -o Assumption changes - - -• Contributions - employer* - 303.682 (303 ,682) o Contributions - employee - - -

Net investment income - 531,476 (531,476) o Benefit payments (303,682) (303 ,682) -• Administrative expenses - (4.263) 4.263

a Net Changes 355373 527,213 (171.840) ii Balance at 6/30/18 $ 7,030,544 $ 8,588,148 $(1,557,604)

( 6/30/17 measurement date)

* Contributions to trust of $0 plus $210,682 cash benefits and $93,000 implied subsidy benefits paid by the Cjty.

There is sensitivity of the net OPEB liability due to changes in the discount rate and healthcare cost trend rates. The following presents the net OPED liabi lity of the District, as well as what the District's net OPEB liab ility would be if it were calculated using the discount and trend rate that were 1 percentage point lower or 1 percentage point higher than the current discount and trend rates.

a Changes in the Discount Rate

Discount Rate

1% Decrease Current Rnte 1% Increase (4.50%) (5.50%) (6.50%)

a Net OPEB LiC!bility s (712 ,289) $ (1 ,557,604) $ (2,274,046)

El Changes in the Healthcare Trend Rate

Henlthcnre Trend Rate

1% Decrease Current Trend 1% Increase m Net OPEB Liability s (2 ,209.188) $ (1 ,557,604) $ (799,594)

79

CITY OF EL CENTRO NOTES TO BASlC FiNANCIAL STATEMENTS

.Tune 30, 2018

NOTE 14 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)

OPEB Expense and Deferred Outflorvs o[Resources and Deferred Inflows o[Resources Related to OPEB

For the fisca l year ended June 30, 2018, the City recognized OPEB expense of $202 ,436. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources re lated to OPEB from the fo llowing sources:

Jtine 3o) 2oi8 · · Deferred Deferi·ed

Outflows of Inflows of Resoui,ces Resources

B Differences between expected and actual expenence s - $ -

El Changes in assumptions - -Iii Net difference bet1veen pwjeded and

actual eamings on plan investments* - 70,594 a Employer contrihntions m:1de

subsequent to tbe measurement elate** 306,183 -Iii Total 306.'183 70,594

* Deferred Iuflows and Outflows combined for footnote disclosure.

* * Contributions to tms t of $0 plus $211,18.3 cash benefits and

$95 ,000 implied subsidy benefits paid by the City

Amounts repOiied as deferred outflows of resources related to OPEB will be recognized as OPEB expense as follows:

Deferred Outflows/(lnflo,vs)

FYE June 30 of Resources

Ia 2019 $ (17,648) 1!1 2020 (17,648) Ill 2021 (17,648)

til 2022 (17,650) I! 2023 -a Ttereafter -

80

CITY OF EL CENTRO NOTES TO BASIC FINANCIAL STATEMFNTS

June 30, 2018

NOTE 15- PENSION PLAN

For purposes of measuring the net pension liability and defen·ed outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are rep01ted at fair value. Pension liabilities are typically liquidated in the General Fund for governmental activities or in the respective enterprise fund.

A. General Information about the Pension Plan

Plan Descriptions - All qualified employees are eligible to participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Plans, cost-sharing and agent multipleemployer defined benefit pension plans, respectively, administered by the California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its pmticipating member employers. Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit 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 full time 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.

Hire date Benefit formula Benefit vcs I ing schedule Benefit pay mcnts Retirement age Monthly benefits, as a% of eligible comp ensation Required emp Ioyce contribution rates Required employer contribution rates

City M iscellancous Plan On or after July I,

PriortoJuly 1, 2013 2013 2.5%@ 55

5 years service monthly for life

50-55 2.0% to 2.5%

7.00% 10.283%

8!

2%@62 5 years service monthly for life

52- 67 1.0% to 2.5%

7.00% 10.283%

City Safety Plan On or after July I,

Prior to July I, 2013 2013 3.0%@ 50

5 years service monthly for life

50 3%

9.00% 58.458%

2.7% @ 57 5 years service monthly for life

50-57 2.0% !0 2.7%

12.25% 12.25%


June 30, 2018

NOTE 15- PENSION PLAN (Continued)

A. General Information about the Pension Plan (Continued)

Employees Covered- At June 30, 20 18, the fo llowing empl oyees were covered by the benefit terms for each Plan:

Inactiv~ ~n1 p loyees or beneficiaries currently receiving benefit s

Inactive emp loyees entitled to but not yet receiving benefits

Active employees

Total

Miscellaneous

155 186 117

458

Safety

l.f/

82

123

342

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 I following notice of a change in the rate . Funding contributi ons for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The ac tuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finam:e any unfunded accrued liabi li ty. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

B. Net Pension Liability

The City's net pension li ab ili ty for each Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30,20 17, using an annual actuarial valuation as of June 30,2016 rolled forward to June 30, 2017 using standard update procedures . A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions -The total pension li ab ilities in the June 30, 20 I G act uaria l valuations were determined using the followin g actuarial assumptions:

Valuation Date Meas urement Date Actuarial Cost Method Actuarial Assumptions:

Disco unt Rate lntlat ion Payrol l Growth Projected Salary Increase Investment Rat e of Return tv! ortal it y

Miscellaneous June 30, 2016 June30, 20 17

Safety June 30,20 16 June 30, 2017

Entry-Age Nom1al Cost Method

7.15% 2.75% 3.00%

3.30%- 14.20% (1) 7.50% (2)

7. 15% 2.75% 3.00%

3.3 0%- 14.20% (1) 7.'iO%, (2)

Derived using CaiPF.RS' M r.mhership Data for all Funds

(I) Depend ing utt age, serv ice and type of employment

(2) Net of pension plan investment expenses, including inflation

The unrl erlyin g mortality assumptio ns and all other actuarial assumptions used in th e June 30, 20 16 valuati on were based on the results of a January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experi ence Study can found on the Ca!PERS website.

82


June 30, 2018


B. Net Pension Liability (Continued)

Discount Rate - The discount rate used to measure the total pension liability was 7.15% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the cuiTent 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary . The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website .

CaiPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability M anagement (ALM) review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2017-18 fiscal year. Ca!PERS will continue to check the materiality of the difference in calculation until such time as we have changed our methodology.

The long-term expected rate of return on pension plan investments was determined usin g a building-block method in which best-estimate ranges of expected future real rates of return (expected returns , net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash 11ows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first I 0 years) and the long-term ( 11-60 years) using a bu i !ding-block approach. Using the expected nominal returns for both shmt-term and long-ten11, the present value of benefits was calculated for each 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 equivalent to the single equivalent rate calculated above and rounded down to the nearest one qumter of one percent.

83


June 30, 2018


B. Net Pension Liability (Continued)

The tab le below reflects the long-term expected real rate of return by asset class . The ra te of return was calcu lated using the capi ta l market assumptions appl ied to determine the d iscount rate and ass~t r1 Jl oc.rttion. Th~se rMes of return arc net of administrative expenses.

Asset Class

Global Eq uity Global Fixed Income Inflat ion Sensi tive Private Equ ity Real Estate In frastructure and Forestl and Liquidity

Tota l

New Strategic Allocation

51.00%

20.00% G.OO%

10.00%

10.00% 2.00%

1.00%

100.00%

Real Return Year I - Real Return Years IO(a) ll+(b)

5.25% 5.7 1%

0.99% 2.43%

0.45% 3.36%

6.83% 6.95%

4.50% 5. 13%

4.50% 5.09% -0.55% - l .05%

C. Changes in the Net Pension Liability

The change in lite Nel Pension Liabi lity for each Plan fo ll ows:

Jl.1iscellaneous Plan:

Increase ( Decrease)

Tota l Pension Plan Fiduciary Net Pension Liabili ty Net Position Liability/(Asset)

(a) (b) (c) = (a) - ( b)

Ba lance at: 06/ 30/ 2016 $69,311/793 $55,920,570 $13,391,223

Changes Recognized for t he Measurement Period:

Service Cost $1,525,901 $1,525,901

Interest on Tota l Pension Liability 5,218,413 5,218,413

d1anges of Benefit Terms 0 0

CJ1anges of Assumptions 4,405,259 4,405,259 Differences between Expected and

Actual Experience 91,457 91,457

Net Plan to Plan Resource fVlovement $0 0

Contributions - Employer 1,167,841 (1,167,841)

C:onrrihutions- Employees 662,744 (662,744)

Net I nve.stment Income 6)01,975 (iVn t,gJs)

Benefit Payments, including Retunds of Employee Contributions (3,173,320) (3,173,3:.!.0) u

Administrative Expense (82,563) R/ ,So::l

Other l•lisce!ldJJeuus Income 0 ( }

Net Changes during 2016-17 $8,067/710 $4, 776,677 $3,291,033 -· .

Balance at: 06/ 30/"1017 $77,379/503 $60,697,247 $16,682,256

84


June 30, 2018


C. Changes in the Net Pension Liability (Continued)

Safety plan:

As of June 30, 20 18; the City Safety Plan reported net pension liabilities for its proportionate share of the net position liability of the Plan as follows:

Proportionate

Share ofNet

Pension Liabil ity

$ 31,203,847

The City's net pension liabi lity for the Plan is measured as the proportionate share of the net pension liab il ity. The net pension liability of the Plan is measured as of June 30, 2017, and the tota l pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2016 rolled forward to June 30, 2017 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-tenn share of contributions to the pension plans relative to the projected contributions of all patticipating employers, actuarially determined. The City's propmiionate share of the net pension liability for the Plan as of June 30, 2017 and 2018 was as fo llows:

Change: Percentage Share of Pl:m Increase/ 6/30/2018 6/30/2017 (Decrease)

n l'vieasurement Date 6/30/2017 6/30/2016 a Percentage of Plan

(PERF C) 1'-Jt>L 0.314642% 0 . 330739~/o -0.016097%

Sensitivity of the Net Pension Liability to Changes in the Discount Rate -The following presents the net pension liability of the Local Government for each Plan, calcu lated using the discount rate for each Plan, as well as what the City's net pension liability wou ld be if it were calculated using a discount rate that is I percentage point lower or 1 percentage point higher than the current rate:

1\rJ iscellaneous Safety

1% Decrease 6.15% 6.15% Net Pension Liabi lity $ 27,396,366 $ 46,300,87 1

Curren t Discount Rate 7.15% 7.15% Net Pension Liabi lity $ 16,682,256 $ 31,203,847

1% Increase 8.15% 8.15% Net Pension Liabil ity $ 7,865,345 $ 18,862,783

Pension Plan Fiduciary Net Position - Detai led infonnation about each pens ion plan's fiduciary net position is availab le in the separately issued CaiPERS financial repOiis.

85


June 30, 2018


D. Pension Expenses and Deferred Outjlowsllnflows of Resources Related to Pensions

For the fiscal year ended June 30, 201 8, the City rt:l:Ogllizt:d pt:usion t:x.peJJSt: of $4,980,376. At June 30, 201 R, the Local Government repo.tted deferred outflows of resonrces ;mel deferred inflows of resources related to pensions from the following sources for each plan:

Safety Plan:

Deferred De.ferred Outflows of Inflows of Resources Resources

a Differences between expected and actual experience $ 315,110 $ 32 ,158

r.t Changes of assumptions 4,569,890 350 ,614

11 Net differences between projected and actual eami.ngs on plan investments 996,415 -

ra Change in employer's proportion 430,513 403 ,928

a Dif±"".!rences between the employer's contributions and the employer's proportionate share of contributions 1,380,542 -

m Pension contributions subsequent to measurement date 3,930,416 -

B Total 11 ,622 ,886 836,700

$3,930,416 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 fiscal year ended June 30,2019. Other amounts reported as deferred inflows of resources related to pensions wi ll be recognized as pension expense as fo llows:

Deferred Outf1ows/(Iuf1o"·s)

of Resources iii Fiscal Year Ending June 30:

• 2019 $ 2, 164.7 00

0 2020 3,249,121

• 2021 2,024 ,98 7

0 2022 (583 ,038)

0 2023 -

• There~ftcr -__ ., .... _-

86


.Tune 30,2018


D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

Miscellaneous Plan:

Pension contributions subsequent to measurement date

Change of assumptions

Net difference between actual vs project experiences

Net differences between projected and actual earnings on plan investments

Total

Deferred Outflows

of Resources

$

$

1,232,661

3,146,614

65,326 852,955

5,297,556

Deferred Inflows

of Resources

$

37,978

97,825

$ 135,803

$1,232,661 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 fiscal year ended June 30, 2019. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal Year Ended

June 30

2019

2020

2021

2022

$ 1,149,608

2,235,549

996,591

(452,656)

NOTE 16- E~ CENTRO REGIONAL MEDICAL CENTER PENSION PLAN

General Information about the Retirement Plan

Plan description- The Retirement Plan is a single-employer defined benefit pension plan sponsored and administered by the Medical Center. The Retirement Plan covers all employees of the Medical Center hired before January 1, 2010. Employees first hired after December 31, 2009 are not eligible to participate in the Retirement Plan. The Retirement Plan provides retirement and death benefits to participants and its beneficiaries. The Retirement Plan is administered by a retirement plan committee appointed by the Board of Trustees of the Medical Center.

Benefits provided- The Retirement Plan provides retirement and death benefits. Retirement benefits for employees are calculated as the average of the highest consecutive three years of earnings. Employees are eligible to participate on their date of hire. Emp loyees' retirement benefits vest I 00% at sixty years of age and after twenty-five years of completed service. Nom1al retirement is the later of age 65 and the 5th anniversary of hire. Early retirement is available at age 55 based on credited serv ice to the date of retirement, with a benefit that is actuarially reduced for commencement prior to the normal retirement date. Death benefits are paid as a lump sum equal to the greater of the present value of the participant's accrued benefit or the pm1icipant's accumulated employee contributions.

87

CITY OF F:T, CENTRO NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2018

NOTE 16- EL CENTRO REGIONAL MEDICAL CENTER PENSION PLAN (Continued)

General Information about the Retirement Plan (Continued)

Employees covered by benefit terms - At June 30, 2017, the following emp loyees were covered by the benefit terms:

Inactive employees {or their bcncficiorie::;) currently receiving benefits

Inactive employees entitled to but not yet receiving benefits Active employees

Tota1

As of January 1, 2010 the Retirement Plan was closed to new entrants .

287

1,017 378

1,682

Contributions - The Retirement Plan's funuing policy proviues for annual employer contributions at actuarially determined rates that, expressed as a percentage of annual covered payroll, are sufficient to accumulate assets to pay benefits when due. The actuarial ly 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 liab ility. The Medical Center is required to contribute the difference between the actuarially determined rate and the contribution rate of emp loyees . For the fiscal year ended June 30, 2017, participants contributed 5% of their annual pay and the Medical Center's average contribution rate was 12.80% of annual payroll. The contribut ion requirements of participants and the Medical Center are established and may be amended by the Medical Center's Board of Trustees. Please contact the E l Centro Regional Medical Center at 141 5 Ross Avenue, El Centro CA, 92243 or (760) 339-7100 for more information regarding this plan.

Net Pension Liability

The Medical Center's net pension liability was measured as of June 30, 201'/, and the total pension liability used to calculate the net pension liability was determined by an actuaria l valuation as of that date.

Actuarial assumptions - The total pension liabi li ty in the June 30, 201 7 actuaria l valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Safary increases

lnvestment rate of return

2.1)%

2.0"Ai including inflation

7.25% net pension plan expense, including inflation

M01tcdity rates were based on the Society of Actu<'!ries RP 20 14 Tahle with the current MP adjustment for males or females, as appropriate.

The actuarial assumptions used in the June 30, 2017 va luation were based on the results of an actuarial experience study for the period January 1, 2008 through December 31, 2013.

88


June 30, 2018


Net Pension Liability (Continued)

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset c lass. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-Term Target Expected Real

Asset Class Allocation Rate of Return

Domestic equity -% 8.0% Alternative investments 40 'l6 7.0% Standard and Poor 500 10 'l6 8.0 % Intermediate U.S. Treasuries 50% 3.5% Cash -% 1.0%

Total 100%

Discount rate - The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that participant contributions wi ll be made at 4.75% of pay from July 1, 2015 through June 30, 2016, with the contribution rate increasing by 0.25% each July 1st until it caps at 6.00%. Based on those assumptions, the Retirement 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 pension plan investments was app lied to all periods of projected beneiit payments to determine the total pension liability.

Changes in the Net Pension li-ability Total Pension Plan Net Net Pension

Liabi li!,y Position liabili!,y (Asset)

Ba lances of June 30, 2017 $ 93,305,900 $ 54,359,700 $ 38,946,200

Changes for the year: Service cost incurred 1,179,700 1,179,700 Interest on total pension liability 6,889,400 6,889,400

Actuarial liability loss(gain} 4,980,600 4,980,600 Changes in assumptions 577,200 577,200

Benefit payments (4,264,400) (4,264,400) Contributions- Employer 3,347,900 (3,347,900) Contributions- Employee 1,371,800 (1,371,800) Net investment income 1,576,400 (1,676,400)

Administrat ive expense (38,500) 38,500

Current-:tear net changes 9,362,500 2,093,200 7,269,300

Ba lances as of June 30, 2018 $ 102,668,400 $ 56,452,900 $ 46,215,500

89


June 30, 2018



Total Pension Plan Net Net Pension Liability Position Liability (Asset )

13alances of June 301 2016 $ BB10661200 " 53,953,022 " 341112,378 ., "

Changes for the year: Service cost incurred 1,241,300 1,241,300 lnterest on total pension liability 6,525,700 6,525,700 Actuarial liability loss{ga in) 1,576,800 1,576,800 Changes in assumptions 115,800 115,800 Benefit payments {4,219,900} (4,219,900) COntributions- Employer 3,239,400 (3,239,400) COntributions- Employee 1,356,200 {1,356,200} Net investment income 66,800 (66,800) Administrative expense (36,622) 36,622

Current-year net changes 5,239,700 405,878 4,833,822

Balances as of June 30, 2017 $ 93,305,900 $ 5t1,359,700 $ 38,946,200

The mortality assumption was changed from the 2016 Annuitant and Nonannuitant table for males and females to the 2016 Annuitant and Nonannuitant table for males and females published by the Internal Revenue Service in Notice 2015-53 .

Sensitivity of the net pension liability to changes in the discount rate - The following presents the net pension liability of the Medical Center, calculated using the discount rate of 7 .25%, as well as what the Medical Center's net pension liability would be if it were calculated usi ng a discount rate that is !percentage-point lower (6.25%) or ! -percentage-point high er (8.25%) than the cuzTent rate:

2018 2017

1% decrease 6.25% 6.50%

Net pension liability $ 58,406,200 $ 50,683,800

Current discount rate 7.25% 7.50% Net pension lfability $ 46,215,500 $ 38,945,200

1% increase 8.25% 8.50%

Net pension liability $ 36,309,400 $ 29,403,700

90


June 30, 2018



Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

For the fiscal year ended June 30,2018, the Medical Center recognized pension expense of$3,347,900. At June 30, 2018, the Medical Center reported deferred outflows of resources and defened inflows of resources related to pensions from the following sources:

Differences between actual and expected experience Changes in assumptions Net differences between projected and actual earnings on plan investments Contributions made after the measurement date of June 30, 2017

Totals

Year Ended June 30,

2019 2020 2021 2022

Total

Defined Contdbution Plan

$

$

Deferred Deferred Outflows of Inflows of Resources Resources

1,816,300 $ 210,500

4,911,800 153,300 4,064,100

11,002,700 $ 153,300

Recognized deferred Inflows/Outflows

$ 3,451,300 1,577,900 1,281,100

475,000

$ 6,785,300

Employees hired after January I, 20 l 0 are enrolled in a Defined Contribution Plan, 40 I (a). The DCP is administered by the Hospital.

Benefit terms, including contribution requirements, for the DCP are established by the Hospital. The Hospital is required to match employee contribution percentages. Employees enrolled in this plan contributed 5.25% of their gross payroll in fiscal year 2018 and the Hospital matched 5.25%. Employees are immediately vested upon entering the DCP.

The Hospital ' s contributions to this plan were approximately $1,144,539 and $93 7,060 for the fiscal years ended June 30, 2018 and 2017, respectively.

91

CITY OF EL CF.NTRO NOTES TO BASIC FINANCIAL STATEMENTS

June 30,2018

NOTE 17- NET POSITION

GASB Statement No. 63 requ1res that the difference between assets added to the deferred outflows of resources and liabi lities added to the deferred inflows of resources be repOiied as net position. Net position is divided into three captions under GASB Statement No. 63. These captions apply only to net position as determined at the govemment-wide level and are described below:

Net Investment in Capital Assets descrihcs th~ portion of net position which is represented by the current net book value of the City's capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of net pos1t10n that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enab ling legislation. These principally include debt service requirements, and redevelopment fuHJs restricted to low and moderate income housing purposes.

Unrestricted describes the portion of net position that does not meet the definition of invested in capital assets or restricted net position.

The government-wide statement of net position rep01is $49,R44,523 of restricted net position.

None of the restricted net position in the government-wide statement of net position is restricted by enabling legislation.

NOTE 18- FUND BALANCES

GASB Statement No. 54 requires governmental funds to report fund balance in c;lassifications based primarily on the extent to which the City is bound to honor constraints on the specific Purposes for which amounts in the funds can be spent. As of June 30, 2018, fund balances for govemmental funds are made up of the following:

Nonspendable - amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact.

Restricted- amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.

Committed - amounts that can be used only for specific purposes determined by a formal action of the governing board in the highest level of decision-making authority for the City. Commitments may be established, modified, or rescinded only through resolutions approved by the governing bourd.

Assigned - amounts that do not meet the criteria to be classified as rcstrided or committed IJLtt lltal are intended to be used for specific purposes . Under the City' s adopted policy, only the City Mamtger may assign amounts for specific purposes.

Unassigned - all other spendable amounts.

92


June 30, 2018

NOTE 18- FUND BALANCES

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the governing board (or City Manager for assignments) has provided otherwise in its commitment or assignment actions.

The governing board adopted a minimum fund balance policy for the General Fund in order to establish, dedicate, and maintain reserves annually to meet known and estimated future obligations . The General Fund policy is to have not less than 10% of total expenditures in the unassigned fund balance for economic unce1tainties. The General Fund is the only fund that reports a positive unassigned fund balance. Other governmental funds may report unassigned fund balance only when liabilities exceed assets resulting in a negative unassigned fund balance .

A detailed schedule of fund balances as ofJune 30, 2018 is presented below. Other Total

Governmental Governmental

General Ftmds Ftmds

Restricted for:

Housing $ $ 5,222,205 $ 5,222,205

Special projects

Debt service 8,655,245 8,655,245

C01mmmity development 7,589,036 7,589,036

Asset forfe iture 156,990 156,990

Public safety 982,859 982,859

Streets and roads 7,233,853 7,233,853

Landscaping & community facilities district 382,887 382,887

Pens ion plan 1,500,000 1,500,000

Capital projects 19,643,023 19,643,023

Total restricted fund balances 1,500,000 49,866,098 51,366,098

Committed to:

Parks and recreation 143,992 143,992

Streets and roads 279,994 279,994

Capital projects 1,009,456 1,009,456

Total committed fund balances 1,433,442 1,433,442

Assigned to:

Other post employment benefits 5,019,337 5,019,337

Total assigned fund balances 5,019,337 5,019,337

Unas signed 16,008,312 (21,789) 15,986,523

Total unassigned fund balances 16,008,312 (21 ,789) 15,986,523

Total nonspendable 6,736,080 6,736,080

Tota l fund balances $ 22,527,649 $ 58,013,831 $ 80,541 ,480

93


June 30, 2018

NOTE 19- HOSPITAL FEE

The California Hospital Fee Program (Program) was signed into law by the Governor of California and became effective on January 1, 20 I 0. Amending legis lation to conform to changes requested by the Centers for Medicare and Medicaid Services ("CMS") during the approval process was signed into law on September 8, 20 I 0 by the Governor of California. The Program required a "hospital fee" or "Quulily Assurance Fee" (QA Fee) to be paid by certain hospitals to a State fund established to acc\lmn late the <1ssessed QA Fees and receive matching fed ernl funds. QA f ees and COJH~SfJUlH1ing matching federal funds are then paid to participating hospita ls in two supplemental payment methodologies, a fee-for-service methodology and a managed care plan methodology.

CMS approved California's State Plan Amendment and Waiver, as of October 7, 20 I 0, allowing the State to implement the QA Fee and the fee-for-service Supplemental Payment methodology of the legislation.

Additional legislation in March 2011 ("SB 90") extended the Program for the period from - January 1, 20 II through June 30, 20 12; however, the extension under SB 90 included only

private hospitals and thus exc luded the Medical Center. As an alternative, the Non-designated Public Intergovernmenta l Transfer Program was established under AB 113 in 2011 to allow nondesignated public hosp ital s to access Cl dditional federal funds for a two-year period (fiscal years 2011 and 20 12). The State failed to extend AB 11 3 C~nd as such, the Medical Center received no such reimbursement for the year ended June 30, 2013. However, the State has re-established AB 113 for non-des ignated hospitals beginning in fiscal year 2014 .

The Medical Center, as a non -des ignated public hosp ital in California, received net supplemental payments of approximately $2,691,000 for the fiscal year ended June 30, 2015. The State delayed reimbursements for AB 11 3 and as such, the Medical Center received $1,536,000 for the fi sca l year ended June 30, 2018 .

NOTE 20- RELATED PARTY TRANSACTIONS

On February 23, 2011 , the City entered into a Reimbursement Agreement with the former Redevelopment Agency (RDA). The former RDA desired to provide funds to finance the cost of the acquisition, installation, construction and/or reimbursement of public infrastructure improvements within or outside the Project Area owned by the City and located in the City. The former RDJ\ entered into a Reimbursement Agreement in which the former RDA agreed to reimburse the City for all costs of the Project Improvements that have been or will be paid or provided for initially by the City ei ther directly or through reimbursement in an amount not to exceed $4.2 million (amended to $162 million in an amendment to the agreement). The reimbursement agreement stated that the reimbursement obligation shall constitute an indebtedness of the former RDA to the City which would be payable out of taxes levied in the Project Area and out of any other available funds. The former RDA pledged and granted the C ity a security interest in and lien on the Tax Rcvt::nues, except such pledge is subordinate to any existing honrl .c; , notes, or other forms of indebtedness incurred by the former RDA or as otl1ervvisc agreed between the City and th e former RDA.

94


June 30, 2018

NOTE 20- RELATED PARTY TRANSACTIONS (Continued)

On March 8, 2011, the former RDA issued the El Centro Redevelopment Project Tax Allocation Bonds Series 2011A to the City in the amount of $5,110,000 to partially satisfy the Reimbursement Agreement between the City and RDA.

On April 7, 2011, the fom1er RDA issued the El Centro Redevelopment Project Tax Allocation Bonds Series 2011 B in the amount of $20,000,000 and the El Centro Redevelopment Project Tax Allocation Bonds Series 2011C in the amount of $11,095,000 to the City to partially satisfy the Reimbursement Agreement between the City and RDA .

The Tax Allocation Bonds Series 2011 A are junior and subordinate to the payment of the Tax Allocation Bonds 2007 A&B and the Tax Allocation Bonds Series 2011 C.

The Tax Allocation Bonds Series 2011 B are secured on a basis subordinate to the Tax Allocation Bonds 2007 A&B, the Tax Allocation Bonds Series 2011 A, and the Tax Allocation Bonds Series 20 II C. Under the Indenture of Trust, there will be no event of default if the former RDA does not pay principal or interest on the Tax Allocation Bonds Series 2011 B while the City is the sole holder of the bonds unless the City declares such event of default in a written notice to the Trustee.

The Tax Allocation Bonds Series 2011 C are subordinate to the Tax Allocation Bonds 2007 A&B.

The City entered into a commitment agreement and purchase contract with the El Centro Financing Authority (Authority) for the purchase and sale of the Tax Allocation Bonds Series 2011 C to the Authority. For the purpose of acquiring the bonds, the Authority issued the El Centro Financing Authority Revenue Bonds Series 2011. A portion of the proceeds of the Authority Bonds were used by the Authority to purchase the Tax Allocation Bonds Series. 2011 C in the amount of $11,095,000 from the City. The El Centro Financing Authority issued the Revenue Bonds Series 2011 on May 3, 201 1. The remaining proceeds were used to fund the Reserve Fund, and pay costs of issuing the Bonds and the Local Obligations.

The former RDA delivered the Tax Allocation Bonds Series 2011 C to the City and the City transferred the Tax Allocation Bonds Series 2011 C to the Authority. The Tax Allocation Bonds Series 20 ll A and 2011 B were shown as investments in the City's capital projects fund and the Tax Allocation Bonds Series 2011 C is shovvn as an investment in the Financing Authority fund. As no money was transferred between the former RDA and City for the Tax Allocation Bonds (20 11 A, 20 II B, and 2011 C), advances receivable and payable have been set up in the financial statements for the amounts of the Tax Allocation Bonds.

However, in accordance with the Department of Finance letter dated April I, 2014, the Tax Allocation Bonds Series 2011 A and 2011 B were disallowed as enforceable obligations since they were created between the City and fonner RDA and not with an outside entity. Due to this reason, prior period adjustments were made to eliminate the bonds which had been recorded as assets totaling $25,110,000 in the City's capital projects fund, an advance totaling $25,110,000 between the City and Successor Agency, and as long tem1 debt totaling $25,055,000 in the Successor Agency private purpose trust fund.

95

CITY OF l!:L CENTRO NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 201 8

NOTE 21- SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY

On December 29, 2011 , the California Supreme Court upheld Assembly Bill !X 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of Lhe City of El Centro that previously had rep01ted a rcctcvelnpment agew.:y wilhin the reporting entity of the City as a blended l.:UIIIIJUIIt:lll uuil.

The Bill provides that upon dissolution of a redeve lopment agcul.:y, either the city or other unit of loca l 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 Jan uary 17, 201 2, the City Counci l elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City resolution number I 2.

After enactment of the law, which occurred on June 28, 2011 , redevelopment agencies in the State of Ca lifornia cannot enter into new projects, ohlig8tions or commitments. Subj ect to the control of a newly established oversight board, remaining assets can on ly be used to pay enfo rceab le obligat ions in existence as the date of the dissolution (including the complet ion of any unfinishe<i projects that were subj ect to legally enforceab le contractual commitments).

In future fiscal years, successor agencies will only be all ocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable ob ligat ions of former redevelopment agency until all enforceable obligations of the prior redeve lopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of Ca li fornia to review the propriety of any transfers of assets between r~development agencies and other public bodies that occurred after January I, 2011 . If the public body that received such transfers is not contrachially committed to a third party for the expenditure or encumbrance of those assets, the state Contro ller is required to order the ava il able assets to be transferred to the public body designated as the successor agency by Lhe Bill.

Management believes, in consultation with legal counsel, that the obl igat ions of the former redevelopment agency due to the City are valid enforceab le obligations payab le by th e 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 considerabl e lega l unce1tainty regard ing this issue. It is reasonably poss ible that a lega l determination may be made at a later date by an appropriate judicial authority that wou ld reso lve Lhis issue unfavorably to the City.

In accordance with the timeline set fo rth in the Bil l (as modified by the Ca li fornia Supreme Court on December 29, 20 11) all redeve lopment agencies in the State of Ca lifomia were dissolved and ceased to operate as a legal eulily as of February 1, 2012 .

Prior to th;Jt elate, the final seven months of activ ity of the redevclO!Jlll\::nl agency continueJ lu be rep01ted in the governmental fun<i .<> of the City. After the date of dissolution, the assets and acti vi ties of the dissolved redevelopment agency are reported in a fid ucia1y fund (private-purpose tru st fund) in the fi11am: ial statements of the City.

96


June 30, 2018

NOTE 21- SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)

The transfer of the assets and liabilities of the former redevelopment agency as of February I, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private-purpose trust fund as an extraordinary gain (or loss).

Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus ofthe trust funds (economic resources measurement focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements.

Capital asset activities for the fiscal year ended June 30, 2018 was as follows :

Fiduciary Activities: Balance at Balance at Capital assets, not being depreciated: July 1,2017 Additions Deletions June 30,2018

Land and land improvements $ 5,763,861 $ $ $ 5,763,861 Construction in progress 1,323,759 371,109 1,694,868 Total capital assets, not being depreciated 7,087,620 371 ,109 7,458,729

Capital assets, being depreciated: Structures and improvements 21,720,364 21,720,364

Vehicles 79,772 79,772

Equipment 425,128 425,128

Tot~! capital assets, being depreciated 22,225,264 22,225,264

Less accumulated depreciation for: Structures and improvements (8,430,714) (570,092) (9,000,806)

Vehicles (79,772) (79,772)

Equipment (348,311) (1 ,012) (349,323)

Total accumulated depreciation (8,858,797) (571,104) (9,429,90 I)

Total capital assets, being depreciated net 13,366,467 (571 '104) 12,795,363

Fiduciary activities capital assets, net $ 20,454,087 $ (199,995) $ $ 20,254,092

The following is a schedule of long-term liabilities for the fiscal year ended June 30, 2018:

Balance at Balance at Due Within

July 1, 2017 Additions Reductions June 30, 2018 One Year

Tax allocation bonds payable (2007) $ 26,435,000 $ $ (820,000) $ 25,615,000 $ 895,000

Unamortized discount (291,650) 15,085 (276,565) (15,085)

Tax allocation bonds payable (20 II) 6,780,000 (775,000) 6,005,000 795,000

Total $ 32,923,350 $ $ (1,579,915) $ 31,343,435 $ 1,674,915

97


June 30, 2018


Tax Allocation Bonds Payable

Tax Allocation Bonds (2007). On May 16, 2007, the former Redevelopment Agency of the City of El Centro issued its $25,790,000 Tax. Allucalion Bonds, Series 2007 A and $5,40),000 Tax Allocation Bonds, Series 2007B. A portion of these Series 2007 A and Series B Bonds was used to redeem all of the $7,8 10,000 1996 bonds outstanding at June 30, 2007. The balance of the bond funds were used to finance pub lic improvements, which constitute redevelopment activity within the Project Area, and finance low and moderate income housing projects of the Agency within the Project Area. The bonds have a stated interest rate from 4.00% to 5.75% and are payable over a period of thirty years maturing in 2036. The principal balance outstanding at June JO, 2018 is $25,338,435, which is net of the $276,565 ofunam01iized original bond discount.

Tax Allocation Bonds (2011 ). During the fiscal year 20 i 0/20 ll, the former Redevelopment Agency of the City of El Centro (RDA) issued three tax allocation bonds: El Centro Redevelopment Project Tax Allocation Bonds Series 20 11 A in the amount of $5,110,000 on March 8, 20 11 , the El Cen tro Redevelopment Projed Tax Allocation Bonds Series 2011B in the amount of $20,000,000 on Apri l 7, 20 II, and the El Centro Redevelopment Project Tax A !location Bonds Series 20 I 1 C in the amount of $ 1 I, 09 5,000 on Apri l 7, 20 I I . Each of the three tax allocation bonds was issued to partially satisfY a Reimbursement Agreement between the City and the former RDA. The Reimbursement Agreement was entered into by the City and RDA to provide funds to the City from the former RDA to finance the cost of the acquisit ion, installation, construction and/or reimbursement of public infrastructure improvements within or outside of the Project Area owned by the City and located within the City. The Reimbursement Agreement origi!1ally stated an amount not to exceed $4,200,000, but was amended to $162,000,000 subsequent to the origina l Reimbursement Agreement.

However, in accordance with the Department of Finance letter dated April I, 20 14, the Tax All ocation Bonds Series 2011 A and 20 11 B were disallowed as enforceab le obligations since they were created between the City and former RDA and not with an outside ent ity.

98


June 30, 2018

NOTE 21 -SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)

Tax Allocation Bonds Payable (Continued)

The Series 20IIC Tax Allocation Bonds are subordinate to the 2007 AlB Tax Allocation Bonds. The Series 20 Il C Tax Allocation Bonds have a stated interest rate from 6.000% to 6.625% and have a maturity date of November I, 2025. The principal balance outstanding at June 30,2018 is $6,005,000

The annual requirements to ammiize long-term debt outstanding at June 30, 2018 are as follows:

Fiscal Year 2007 Series A Tax Allocation Bonds


2019 $ 755,000 $ 885,837 $ 1,640,837

2020 810,000 854,537 I,664,537

2021 865,000 821,037 1,686,037

2022 920,000 785,337 1,705,337

2023 990,000 746,5I8 I,736,5I8

2024-2028 7,I70,000 2,913,451 I 0,083,451

2029-2033 5,795,000 1,323,799 7,118,799

2034-2037 3,635,000 339,I87 3,974,187

20,940,000 8,669,703 29,609,703


$ 20,690,277 $ 8,669,703 $ 29,359,980

Fiscal Year 2007 Series B Tax Allocation Bonds - - --···- ·-


2019 $ 140,000 $ 263,602 $ 403,602

2020 155,000 255,342 4I0,342

2021 170,000 246,242 416,242

2022 190,000 236,162 426,162

2023 205,000 225,102 430,102

2024-2028 1,675,000 873,280 2,548,280

2029-2033 1,350,000 372,600 1,722,600

2034-2037 790,000 95,162 885,162

4,675,000 2,567,492 7,242,492


$ 4,648,158 $ 2,567,492 $ 7,215,650

99


June 30, 2018


Tax Allocation Bonds Payable (Continued)

The annual requirements to amorti2e loug-lt:Jtll JdJL uulslauJiug al J um: 30, 2018 are as fullu ws: (Continued)

Fiscal Year Series 2011C Tax Allocation Bonds Ended June 30, Principal Interest Total

2019 $ 795,000 $ 353,262 $ 1,148,262 2020 820,000 304,812 1,124,812 2021 840,000 255,012 1,095,012

2022 860,000 204,012 1,064,012

2023 675,000 155,853 830,853 2024-2027 2,015,000 199,911 2,214,911

$ 6,005,000 $ 1,472,862 $ 7,477,862

Fiscal Year Total Tax Allocation Bonds


2019 $ 1,690,000 $ 1,502,701 $ 3,192,701

2020 1,785,000 1,414,691 3,199,691

2021 1,875,000 1,322,291 3,197,291

2022 1,970,000 1,225,511 3,195,511

2023 1,870,000 1,127,473 2,997,473

2024-2028 10,860,000 3,986,642 14,846,642

2029-2033 7,145,000 1,696,399 8,841,399

2034-2037 4,425,000 434,349 4,859,349

31,620,000 12,710,057 44,330,057


$ 31,343,435 $ 12,710,057 $ 44,053,492

NOTE 22- RESTATEMENTS OF FUND BALANCE/NET POSITION

Beginning fund balances/net position have been restated as follows:

Prior period adjustments of $(61 ,498) was made in the Statement of Activities due to an overst(ltement of receiv(lh]es in the prior fiscal year

Prior period adjustments of $(2,421 ,789) was made in the Statement of Activities due to the implementations of new GASB pronouncements regarding Net OPED Assets .

100

REQUIRED SUPPLEMENTARY

INFORMATION

CITY OF EL CENTRO REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2018

Agent Multiple-Employer Defined Benefit Pension Plan- City Miscellaneous Plan

Last 10 Fiscal Years*

Schedule of Changes in the Net Pension Liability and Related Ratios

Misce ll aneou s Plan Misce ll aneous Plan

2018

Measurement Period 20 16- 17'

Total Pension Uability

Service Costs $ I ,525 ,90 I $

Interes t on the Total Pension Liability 5,2 18,4 13

Changes of Assumptions 4,405,259

Differences between Expected and Actual Experience 91,457

Benelit Payments, including Refunds of Employ ee Contributions (3, 173,320)

Ne t C hange in Totnl Pension Uability 8,067,7 10

Total Pension Uability- Beginning 69,3 11 ,793

Total Pension Uability- Ending (n) $ 77,379,503 $

Plan Fiduciary Ne t Position

Contribution from the Employ er $ 1,167,841 $

Contribution from the Employees 662,744

Net inves tment income2 6,11 9,4 12

Benefit Payments (3, 173,320)

Net C hnnge in Plnn Fiduciary Ne t Position 4,776,677

Plan Fiduci :u-y Net Position- Be ginning 55,920,570

Plan Fiduciary Net Position- Ending (b) $ 60,697,247 $

Net Pension Liability -Ending (a)-( b) $ 16,682,256 $

Plan Firluciary Net Position as a Percentage of

the Total Pens ion Liability 78.44%

Covered Emp loy ee Payroll $ 9,460,02 1 $

Net Pension Liability as Percentage of Covered

Employee Payroll 176.34%

1 Historical information is required only for measurement periods for which GASB 68 is app licable. 2 Net of administrat ivc c:-.')Jenses.

No te to Schedule:

Benefit C hanges : The figures above do not include any liability imp ac t that may have resulted from

plan changes which occurred after June 30,20 14. This applies fo r voluntary benefit changes as

wel l as any offers of Two Years Additional Serv ice Credit (a.k .n. Go lden Handshakes).

2017

2015-16 1

1,24 1,9 11

4,987,90 1

(178,197)

(2,996,761)

3,054,854

66,256,939

69,311,793

1,099,805

658,851

228,565

(2,996,761)

( 1 ,009,540)

56,930, 110

55,920,570

13,39 1,223

80.68%

8,5 16,739

157.23%

C han ges in Assumptions: In 20 17, th e accounting discou nt ra te reduced from7 .65 percent to 7. 15 percent.

• Fiscal y car 20 15 was the 1st year of implemcnt al ion , therefore only four years are sholl'n .

101

Misce ll aneous Plan

2016

2014-15 1

$ I ,188,226

4,768,690

(1 , 177,330)

(856,424)

(2,883,347)

I ,03 9,8 15

65,2 17, 124

$ 66,256,939

$ 83 1,705

590,04 8

1,181,242

(2,883,347)

(280,352)

57,2 10,462

$ 56,930, 110

$ 9,326,829

85.92%

s 8,079,870

11 5.43%

!\liscellaneous Plan

2015

2013-14 1

s I ,2 15,299

4,607,233

(2,855,061)

2,967,47 1

62,249,653

$ 65,217,124

$ 746,065

604,985

8,605,2 15

(2,855,061)

7, 101 ,204

50, I 09,258

$ 57,210,462

s 8,006,662

87.72%

s 7,902,333

101.32%


JUNE 30, 2018

Agent Mul tiple-Employer Defined Benefit Pension Plan - City Miscellaneous Plan

Last 10 Fiscal Yea rs*

Schedule of Pension Contribu tions1

ivti sc. l'lan

?. lllll

Misc. Plan Misc. Plan

201 7 2016

Actuarially Determined Contribution2 $ 1, J67,S4 1 $ I ,099,805

Contributions in Rei at ion to the Actuariall y Determined Contrih11 tinn 2 (I , 167,84 1) ----"--.:...__:__.:._

( I ,099,805)

Contribution Deficiency (Excess) $ $ ======

Covered Emp Ioyce Pay ro !J 3 ·~ $ 9,460,021 $ 8, 51 6,739

Contributions as a Percent age of Covered [mpl oyee Payro ll 3 12.35%

1 His torical infom1ation is required only for meas urement periods for \v hich GASB 68 is applicable. 7Fmployers are assumed to r11akt: ~:u nt ributions equal to the actuar ially deter111 im:d w nt ributions.

However, some emp lnyers may choose to make additionnl contr ibutions towards their un fu nded

liab ili ty. Employer contributions for such plans exceed the actuar ially detem1ined cont ribut ions. 3Covcred Employee Payroll represented above is based on pens ionable eamings provided by the

employer. However, Ui\SB 68 defines covered employee pnyrul l as the total pay roll of employees

that are pruvir.kd pensions through the pension p lan. Accordingly, if pensionable earnings are

di fferent than total earnings for covered employees, the emp Ioyer should display in the disclosure

footnotes the payroll based on total eamings for the .covered group and recalculate the required pay roll -related ratios. 4Includes one year's payro ll growth us ing3.00 percent payroll growth ass umption.

Note s to S chedul e:

The ac tu arial methods and ass umptions used to set the actuar ially de termined contributions for

Fiscal Year 20 16- 17 were from the June 30, 20 14 public agency valuations .

Entry Age Normal

12.9 1%

$

$

$

Actuarial Cost Method

Amort izm ion M ct hod/Period

Assets Valuation Method

For detail , sec .J une 30,20 14 Fund ing Valuation Report

Actuarial Value of Asse ts. For details, see June 30,20 14

Funding Valuation Report.

lnll ation

Salary Increases

Pay roll Growth

Inves tment Rate ofRetum

2.75%

Varies by Entry Age and Service

3.00%

7.50% Net of Pensio n Plan Inves tment and Administrative

F~-pcnses; includes In ll at ion.

83 I ,705

(83 1 ,705)

8,079,870

10.29%

Ret iremcnt Age The probabilities of Retirement are based on the 20 14 CalP ERS

E:>-1Jerience Study lo r the penod I rom 1997 to 20 II .

Mo rt ality The probab ilit ies of nrur talit y are based on the 20 14 CalPERS

Experience Study fo r the period fro m 1997 tn 7.0 II . Pre

retirement and Pos t-retirement mort al it y rates included 20 years of

projected mort al it y improvement us ing Scale AA published by the

Society of Actu aries .

* Fiscal year 20 15 was the 1st year of imp lementation, therefore onl y fo ur years are shown.

102

$

$

$

Misc. Plan

201 5

746,065

(746,065)

7,902,333

9.44%


JUNE 30, 2018

Cost Sharing Defined Benefit Pension Plan - City Safety Plan As of June 30, 2018

Schedule of the City's Safety Plan Proportionate Share of the Net Pension Liability- Last 10 Years*

June30, 2018 June 30, 2017 June 30,2016 June 30,2015

Proportion of net pension liability 0.314642% 0.330739% 0.352026% 0.598620%

Proportionate share of net pension liability $ 31 ,203,847 $ 28,619,175 $ 24,162,776 $ 22,454,033

Covered-employee payroll $ 5,766,060 $ 6,144,821 $ 6,054,526 $ 5,399,857

Proportionate share of net pension liability

as a percentage of covered-employee payroll 541.16% 465.74% 399.09% 415.83%

Plan's fiduciary net position $ 76,695,958 $ 68,739,383 $ 67,893 ,569 $ 67,281,195

Plan's total pension liability $ I 07,899,805 $ 97,358,558 $ 92,056,345 $ 89,735,228

Plan fiduciary net position as percentage of

total pension liability 71.08% 70.60% 73.75% 74.98%

Notes to Schedule

Change in Benefit Terms : The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2014 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes).

Change in Assumptions: In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent.

*Fiscal year 2015 was the I" year of implementation, therefore only four years are shown.

103


JUNE 30, 2018

Cost Sharing Defin ed Benefit Pension Plan- City Safety Plan As of June 30, 2018

Schedule of Pension Contributions- Last 10 Years*

June 30, 2018 June 30,2017 June 30, 2016 Contractual required contribution (actuar ially

determined) $ 3,930,4 16 $ 3,702,904 $ 3,444,430 Contributions in relation to the actuarially

determined contributions (3,930,416) (3, 702,904) (3,444,43 0) Contribut ion defi ciency (excess ) $ $ $

Covered emp loyee payro ll $ 5,766,060 $ 6, 144,821 $ 6,054,526

Contributions as a percent age of covered

employ ee payroll 68.16% 60.26% 5o.89%

Notes to Schedule

Valuation Date: June 30, 2016

Methods and assumptions used to determine contribution rates:

Actuaria l Cost Method

Amortizat ion Method

Asset Valuat ion Method

Inflation

Salary Increases

Investment Ralt: of Return

Mortality Rate Table (I )

Entry-Age Normal Cost Method

Level Percent of Payroll

Market Value 2.75%

3.30% to 14.20% depending on age,

service, and type of employment

7 .5 0%, net of pension plan investment and administrative Expenses; includes

Inflation

Derived using Ca!PERS' Membership

Data for al l Funds

Junc30, 201 5

$ 2,825,594

(2,825 ,594)

$

$ 5,399,857

~2.13%

(I)The morta lity tnh lr. W<IS deve loped based on Ca!PERS ' specific data. The luble includes 20 yea1s uf rn ort<~ li ty improvements using Soc iety of Actuaries Scale BB. for morr. df. t<l il s 011 thi s tubk, pkase refer to the 20 14 experience study report.

*Fiscal year 20 I 5 was the I 51 yeur of implementation , therefore on ly four years are shown .

104

CITY OF EL CENTRO REQUffiED SUPPLEMENTARY INFORMATION

JUNE 30, 2018

Schedule of Changes in Net OPEB Liability and Related Ratios - Last 10 Years*

. 2017/18 2\Ieilsuieiiient:Pe(iod

2016ti7

a Changes in Tota l OPEB Liability Service Cost $ 284,618

o Interest 374,437 • Ach1al vs. expected experience -o Assumption chru1ges -G Benefit payments (303 ,682)

o Changes of benefit tenus -!• Net Changes 355,373 1111 Total OPEB Liability (begillllin.g of year) 6,675.171 li.1 Total OPEB Liability (end ofyear) 7,030,544

: . 2017/18

. . :\Jeasui·emeilt Pe1iod

2016/17

ra Changes in Plan Fiduciary Net Position e Contributions - employer $ 303 ,682 o Contributions - employee -• Net investment income 531,476 e Benefit payments (303,682)

Administrative expenses (4,263) e Other changes -o Net Changes 527,213

r.1 Plan Fiducimy Net Position (beginning of year) 8,060,935

1111 Plan Fiducia1y Net Position (end of year) 8.588 ,148

2017/18

s Net OPEB Liability/(Asset) $ (L557,604) 61 Fiduciary Net Position as a percentage of the

Total OPEB Liability 122.2% El Covered employee payroll'~ 14,913,485

J::J Net OPEB Liability as a percentage of covered -10.4%

employee payroll

" For the 12 month period ending on June 30. 201 i (Measurement Date).

*Fiscal year 2018 was the I ' 1 year of implementation, therefore only one year are shown .

105


JUNE 30,2018

Schedule of OPEB Employer Contributions- Last 10 Years*

Fisenl Year 2017/18

-~---~~-~ --~- --~-----

19 AchJarially Detem1inecl Contlibution (ADC) 1 il Contributions in relation to the actnarially

cletennined contribution*

a Contlibution deficiency/( excess) 1.ll Covered employee payroll**

a Conhibutions as a percentage of covered employee payroll

"' Actual 2017/18 contribution

$ 154,000

306,183

(152 ,183)

14,2 11 ,290 I ·)o ' - -- !-'0

""" For the 12 months period ending ou Juue 30, 2018 (fiscal year end) .

*Fiscal year 2018 was the l 51 year of implementation, therefore only one year are shown.

106


JUNE 30, 2018

Agent Multiple-Employer Defined Benefit Pension Plan- Hospital Plan


Schedule of Changes in the Net Pension Liability and Related Ratios

2018 2017 2016

Measurement date: June 30, 2017 June 30, 2016 June 30, 2015 Total pension liability:

Service cost $ 1,179,700 $ 1,241,300 $ 1,460,700 Interest 6,889,400 6,525,700 6,129,100 Actuarial liability los.s 4,980,600 1,576,800 1,346,000 Change in assumptions 577,200 115,800 109,000 Benefit payments, including return of

participant contributions {4,264,400) (4,219,900) {3,646,300)

Net change in total pension liability 9,362,500 5,239,700 5,398,500

Total pension liability- Beginning 93,305,900 83,066,200 82,657,700

Total pensio n liability- Ending 102,668,400 93,305,900 88,066,200

Plan fiduciary net position: Contributions by Medical Center 3,347,900 3,239,400 3,716,700

Contributions by participants 1,371,800 1,356,200 1,333,700

Net investment income 1,676,400 66,800 2,334,200

Benefit payments, including return of participant contributions (4,264,400) (4,219,900) (3,646,300)

Admi~istrative expense (38,500) (36,600) {32,700)

Net <":hange in plan fiduciary net position 2,093,200 405,900 3,705,600

Plan fiduciary net position- Beginning 54,359,700 53,9 53,800 50,248,200

Plan fiduciary net position- Ending 56,452,900 54,359,700 53,953,800

Medical Center's net pension liability $ 46,215,500 $ 38,946,200 $ 34,112,400

Plan fiduciary net position as a percentage of the

total pension liability 54.99% 58.26% 61.27%

Covered payroll $ 26,162,900 $ 27,097,600 $ 27,657,600

Medical Center's net pension liability as a

percentage of covered payroll 176.65% 143.73% 123.34%

Notes to Schedule

The long--term expected rate of return was modified to 7.25%.

*F isca l year 20 15 was the I 51 year of implementation, therefore only four years are shown .

107

2015

June 30, 2014

$ 1,586,900 5,589,400 3,839,500 (295,300)

(3,308,000)

7,412,500

75,255,200

82,667,700

3,323,900 1,330,700 4,166,900

(3,308,000) (29,300)

5,484,200

44,764,000

50,248,200

$ 32,419,500

60.78%

$ 29,865,900

108.55%


JUNE 30,2018

Agent Multiple-Employer Defined Benefit Pension Plan- Hospital Plan


Schedule ofPension Contributions

Years Ended Junt! 30,

Actuarially determined contribution

Contributions in relation to the actu8ria lly determined contribution

Contribution deficiency

Covered-employee payroll

Contributions as a percentage of covered

employee payroll

Notes to Schedule

2017

$ 3,347,900

3,347,900

$ -

$ 2b,1b2,900

12.80%

201G

$ 3,239,400 $

3,239,400

$ - $

$ 27,097,600 $

11.95%

201:J

3,323,900

3,323,900

27,657,600

12.02%

Valuation date Actuar·ially determined contribution rates are calculated as ot the July 1st

prior to the end of the fisc<~ I year in vv·hich the contributions are reported.

Methods and assumptions used to determine contribution rates:

Actuarial cost method

Amortization method

Remaining amortization period

Asset valuation method

Inflation

Sa lary increases

Investment rate of return

Discount rate

Retirement Jge

Mortality

Entry age

Level percentage of payroll, closed

16.5 years

5-year smoothed market

2.0%

2.0%

7.25%

7.25%

65 years

Mortality rates were based on the Society of Actuaries Rfl 2014 Table

with the current MP adjustment for males or females, as appropriate .

*Fiscal year 201 S was the I" year of implementation, however, information is presented here when available.

108

CITY OF EL CENTRO NOTE TO REQUIRED SUPPLEMENTARY INFORMATION

June 30, 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Budgetary Data

Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Budget assures the effi(;ient and effective uses of the City's economic resources, as well as establishing that the highest priority objectives are accomplished.

The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City's performance.

The City collects and records revenue and expenditures within the following categories:

Governmental Activities Business-Type Activities

The Governmental Funds include the General Fund, Special Revenue, Debt Service and Capital Projects funds. All funding sources are kept separate for both rep01ting and the use of money. The General Fund is where most City services are funded that are not required to be segregated.

Budgets and Budgetary Accounting

The City uses the following procedures in establishing the budgetary data reflected in the financial statements :

1. Prior to June 30 of each fiscal year, the City Manager submits to the City Council a proposed operating budget .for the fiscal year commencing the following July I. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted at the City Hall to obtain citizen input.

3. Prior to July 1, the hudget is adopted through passage of a resolution and is not included herein but is published separately.

4. The City Manager is authorized to transfer budgeted amounts between departments within any fund. However, any revision that increases the total appropriations of any fund must be approved by the City Council. The appropriated budget is prepared by fund, function, and depmiment.

5. Formal budgetary integration is employed as a management control device during the year for all funds.

6. Budgets for General, Special Revenue, Debt Service, and Capital Projects Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

There were no budgets prepared for the CDBG Special Revenue Fund, Traffic Safety Special Revenue Fund, Soft Drink Franchise Special Revenue Fund, Integrated Waste Management Special Revenue Fund, Used Oil Grant Special Revenue Fund, Depa1tment of Conservation Special Revenue Fund, Household Hazardous Waste Special Revenue Fund, 71h and State Bus Tenninal Special Revenue Fund, 2010 Earthquake Special Revenue Fund, Post Office Grant Capital Projects Fund, EDA Grant Capital Projects Fund, Proposition 1 B Capital Projects Fund, and HCD Community Center Capital Projects Fund ..

109

CITY OF EL CENTRO Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual

General Fund For the Fiscal Year Ended June 30, 2018

13 ud getcd Amounts Act ual Odginal Fi mil Amounts

Reve nues Taxes $ 22, 164,000 $ 22, 164,000 $ 23,946,816 Licen3c3 and Pcrm it3 347,000 347,000 423,868 I n t~;rgovemmenta l 5,345,000 5,345,000 5,679,992 Charges for Services 660,000 660,000 . R4R,951 Fines and Forfeitures 106,000 106,000 76,67 1 In t~;r~:st 11 7,000 117,000 Other 1,278,000 1,278,000 I, I 08,095

Total Revenues 30,0 17,000 30,017,000 32,084,395

Expenditures Current

Cie llcl al Governmen t 3, r/0,63~ 3, 170,638 4,007,539 Public Safety 16,536,899 16,536,899 16,016,794 Puhlic Works 1,808,3 19 1,808,3 19 1 ,334,529 Pnrks and Recreation 3,3 19,059 3,3 19,059 J, 18 1, 183 Communi ty Development 1,403 ,782 1,403,782 I ,809,277

Capital Outlay 5,189, 104 5, 189,104 2, 155,606 Tutal Expenditures 3 1,427,80 1 JI,4D,80 1 28,504,928

Excess (Deficiency) of Revenues Over (Under) Expenditures ( 1,410,801) (I ,410,801)

Ot her Fi nanc ing Sources (uses): Transfers In 6,002,349 6,002,349 Transfe rs Out (4 ,000,000) (4,000,000)

Total Other Financing Sources (Uses) 2,002,349 2,002,349

Net Change in Fund Balance

Fund Ba lance- .Ju ly l, 2017

Fund Balance- Ju ne 30, 201 8

59 1,548 59 1,548

18,24 1,277 18,241,277

$ 18,832,825 $ 18,832,825 $

See Note to Requ ired Supp lementary lnfom1ation II 0

3,579,467

2,42 1,273 ( I ,7 14,368)

706,905

4,286,372

18,241,277

22,527,649

Variance with Finn! Budget

Positive (Nega ti ve)

$ 1,782,8 16

76,868

334,992 I R8,953

(29,329) (117,000)

(169,905)

2,067,395

(836,90 1) 520, I 05 473,790 137,876

(405,495) 3,033,498

2,922,873

4,990,268

(3 ,58 1 ,076) 2,285,632

(1,295,444)

3,694,824

$ 3,694,824

OTHER SUPPLEMENTARY

INFORMATION

COMBINING STATEMENTS NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

Gas Tax - This fund is used to account for the City's share of California State gas tax revenue expended for street improvements and maintenance.

Community Development Blocl{ Grant (CDBG) - This fund is used to account for revenues and expenditures under the State of California CDBG pr·ogram.

Library Assistance - This fund is used to account for the expenditure of private donations and grants from the State of California Public Library Fund.

Bus Shelter - This fund is used to account for revenues and expenditures that will be utilized in the maintenance of the Bus Shelters within the City.

Transportation Article 3 - This fund is used to account for State of California Transportation Development Act Funds expended for bicycle and pedestrian projects.

Home Program - This fund is used to account for the expenditure of grant funds received under the California Department of Housing and Community De':'elopment Investment Partnership Program. ·

Rental Rehab HUD - This fund is used to account for revenues and expenditures associated with the California Department of Housing and Urban Development rental rehabilitation program.

Traffic Safety -This fund is used to account for traffic fines and forfeitures received by the City and used for traffic control supplies and equipment.

Home Program Income Admin - This fund is used to account for the administrative expenditures of the HOME program.

Recr·eation Projects - This fund is used to account for grants and contributions received by the City and used for recreational projects.

Wake Ave Extension -This fund is used for the collection and disbursement of mitigation fees for the construction of Wake Ave.

Special Events - This fund is used to account for activity (revenues and expenditures) r·elated to events held by the City.

Asset Forfeiture- This fund is used to account fo1· revenues distributed by the Department of Justice from drug related seizures.

Ill

Local Transportation Authority - This fund is used to account for the revenues and expenditures of funds generated by a one-half cent voter approved sales tax earmarked for street improvements.

Home G1·ants- This fund is used to account for revenues and expenditures associated with the Home program.

OTS Grant - This fund is used to account for the expenditures of grant funds received from the State of California , Office of Traffic Safety.

State COPS SLESF- This fund is used to account for the revenue and expenditure of funds from the Supplemental Law Enforcement Services Fund (SLESF) pursuant to Section 30061 of the California Government Code (AB 3229).

Annexation Fees - This fund is used to account for the collection and expenditures of annexation fees earmarked for public improvements.

HUD Entitlement Program- This fund is used to account for all revenues and expenditures authorized using the Entitlement guidelines.

CDBG P1·ogram Income - This fund is used to account for the collection of Commuui!y Development Block C.rant loans made from program income.

Housing Enabled by Local Partnership- This program was set up to provide for a source of funds from which to make mortgage loans to first time home buyers.

CALHOME Program - This program p1·ovides mortgage assistance loans to fi1·st time home-buyers.

Development Impact Fees - This fund is used to account for the collec~ion and expenditure of development impact fees earmad{ed for public infrastructure improvements made necessary because of growth .

FHWA Grants - This fund is used to account for the expenditures of grant funds from the FHWA received through the California Department of Transportation.

Soft Drink Franchise - This fund is used to supplement Pari{S and Recreation activities.

Integrated Waste Management - This fund was set up for the purpose of solid waste management and source reduction recycling.

Used Oil G rant - This fund is used for th e establishment and maintenance of local used oil collection programs.

Department of Conservation - This fund is used to administer recycling activities through collection and public education.

Town Center Light and Landscaping District - This fund is used to account for the Town Center Light ami Landscaping District.

Household Hazardous Waste - This program is to establish a permanent household hazardous waste collection facility and providing mobile collection events to service remote and underserved residents.

11 2

I-8 Imperial Ave. Overpass - This fund is used to account for fees charged on new developments for the ovCl'pass project.

EDA Revolving - This fund is used to hold excess EDA Loan funds collected and is not cunently used for loans.

Police and Fire Mitigation -This fund was set up to collect fees lo mitigate impact to police and fire services from new developments.

7' 11 and State Bus Terminal - This fund is used to account for the activity of the development of the new bus ter·minal.

Legacy Ranch L&LD -This fund is used to account for the activity related to the landscape & lighting district.

IV Commons - This fund is used to account for the activity related to the deposits received for the IV Commons.

Fire Mitigation -This fund is used to account for funds used for fire mitigation.

2010 Earthquake- This fund is used to account for activity related to the earthquake that occurred during the fiscal year 2009/2010.

liD Project- This fund is account for grant from liD to help business affected by following and assist them in getting into the business incubator.

Police Grant- This fund is used to account for various police grants from Imperial County.

Successor· Agency Housing- This fund set up to account for administrator of the Low Mod program previously administered by the Redevelopment Agency Low Mod fund.

Cooperative Agreement- This fund is used to account for· the revenues generated from the coop-agreement related to the construction of Fire Station No.3.

CAPITAL PROJECTS FUNDS

Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.

Orange Ave Regional Lift Station - This fund is used to account for revenues and expenditures charged for the development of the lift station.

Park Development - This fund is used to account for fees charged on new development for the development and maintenance of parks.

Drainage Facility - This fund is used to account for the fees charged on new development for dr·ainage facilities.

Post Office Grant - This grant will be used for the renovation of the Old Post Office Pavilion.

113

EDA Grant- This grant will be used to help construct infrastructure improvements to serve the commercial development of the El Centro Town Center II, the El Centro Town Village industrial site, and th~ 8'11 Street industrial site.

Lotus Parallel - This fund is used to account for revenues and expenditures incurred in the development of the future water and sewer trunk from water and wastewater plants to I-8.

liD Facility Crossing - This fund is used to collect monies from developers for the installation of siphon pipes to allow for the Orange and Hamilton Avenue crossing.

8'11 Street Overpass Bridge - This fund is used to collect monies from developers for the lighting of the bridge.

Bridge/Road Improvements - This fund is used to collect monies f1·om developers for the bridge and road improvements on Dogwood Rd and related areas.

Federal Highway Administration - This fund is used to account for expenditures of grant funds frurn the FHW A received through the California Department of Transportation used on miscellaneous projects.

Proposition IB - This grant provides funds used for safety improvements and repai1·s to state highways, upgrades to freeways to reduce congestion, repairs to local streets and roads, upgrades to highways along major transportation corridors, improvement to seismic safety of local bddges, expansion of public transit, and reduction of air pollution.

La Brucherie Green Belt - This fund is used to account for the construction of a nonmotorized pathway along La Brucherie Road.

Colonia-E) Do1·ado Street - This fund is used to account for grant funds received under the State Community Development grant program fo1· street improvements in the EI Dorado Colonia.

LT A Lease Revenue Bonds - This fund is used to account for the funds received from the bond issuance and use of the funds which will be used fo1· the acquisition, construction, and installation of certain transportation-1·elated improvements within the City.

Buena Vista Landscaping & Lighting District- This fund is used to account for the activity related to the new district.

HCD Community Center- This fund is used to account for revenue and expenses incurred for HCD Community Center Grant.

Road Improvement - This fund is used to collect monies from developers for the improvement of various roads through-out the City.

The 2011C Bonds City- This fund is used to account for capital projects based on the deht issuances of the 2011 C Tax Allocation Bonds.

The 2011 A & B Projects - This fund is used to account for revenues and expenditures 1·elated to til~ r~Jevclupment capital projects based on the deht issuances of the former Redevelopment Agency and the agreements between the City and the former Redevelopment Agency that occurred in the 2010/2011 fiscal year.

11 4

DEBT SERVICE FUNDS

Debt senrice funds are used to account for the accumulation of resources and repayment of debt from govemmental resources.

Financing Authority - This fund is used to account for the debt senrice related activity which includes the issuance of the Revenue Bonds Series 2011 and purchase of the Tax Allocation Bonds Series 2011C.

LTA Lease Revenue Bonds- This fund is used to account for debt senrice payments for the outstanding lease revenue bonds.

115

CITY OF EL CENTRO COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FU~DS June 30,2018

Special Revenue Funds

Home Library Bus Transportation Hc~me Rental Traffic Program

Gas Tax CDI3G Assistance Shelter Articlc3 Program Rehab-I-IUD Safctv Income Ad1rin

Asset!'

Ci1sh lind investments s 4,110 s $ s 314,421 s IIK,754 s 171,44< s 310,609 s s 15,586

Rccciv<lblcs:

Taxes

Interest 519 244 299 !OC• 358 11

Grants

Notes I.SJ<t. 773 3 ,996 . 10~

Other 22,090

Restricted Ci!Sh ar.d invcstrncnls with fisc:-~1 :tgent

Land held for rcsr:IL· ------Total Assets s 4,62~· s I ,534. 773 s s 336,755 s 119,053 s 4, I 57,653 $ 310,967 s $ 15,597

==

I-' Liabi lities and Fund llal:lnccs I-' (J)

Liabilities: Accoun ts pay:1hlc s s s s 16,646 s s s s s Salarics/bcncli ts payable

Dcpo;i ts

Due tn other funds 106

To:nl Liabilities 106 ___ 1_6,646

Fund Balances

Nonspcndahlc Restricted 4.523 1.534. 773 320,109 119,053 4,167.653 310,967 15,597

Comm·ncd

Unn%ii!ncd ---- ·-- -----

Total f'und BalazJccs (Dcficit5) 4,523 1.534. 773 320.109 119.05> 4.167,653 310.967 15,597 -----

Totall.iahilitics :1 nd Fund Balaoccs s 4,629 s 1,534. 773 s s 336,755 s 119,053 s 4,167,653 s 313.967 s s 15,597 ==

(Continued)


NONMAJOR GOVERNMENTAL FUNDS June 30, 20 I 8 (Continued)

Special Revenue Funds ~

Recreation \Vn.kc Ave Spcciol i\sset Transportation Home OTS State COPS Annexation Proiccts Extension Events Forfeiture Authori~ Grants Grant SLESF Fees

Assets

Cash and investments s 38 s 314,130 s 83 s 157,338 s 3,543,848 s 64,544 s 39,324 s 234,671 s 109,424 Rcc~ivJblcs:

Taxes

Interest 362 1,286 7,835 76 16 124 126 Grants 30,998 32,989 Notes 4,278,179 Other

Restricted c:1sh and investments with fiscal agent

Land held for resale

Total Assets s 31 ,036 s 314,492 s 83 s 158,624 s 3,551,683 s 4,342,799 s 72.329 s 234,795 s !09,550

....., Li:Jbil itics and Fund Balances ....., -...J

Li:=tbilitlcs: Accounts poyablc s 12,733 s s 414 s 1,634 s 97,173 s s 20,090 s 14,424 s Snlaricslbcncfits payable 1,058 2,366

Deposits 230 Due to other funds 14,846 8,323

Total Liabilities 27,809 8.737 1,634 97,173 ___2!.,148 16,790

Fund Balances

Nonspcndablc 4.281, 740 Restricted 3,227 156,990 3,454,510 61,059 51,181 218,005 Committed 314,492 109,550 Unassigned (8,654)

Total Fund Balances (Deficits) 3,227 314.492 (8,654) 156,990 3,454.510 t1,342.799 51,181 218,005 109,550

Toral Liahilitics and Fund Balances s 31.036 s 314,492 s 83 s 158,624 s 3,55!,683 s 4,342,799 s 72,329 s 234,795 s 109,550

(Continued)


NONMAJOR GOVERNMENTAL FUNDS June 30,2018

(Continued)

Special Revenue Funds HUD CDBG Housing Enabled lntcgra:ed

Entitlement Program By Local CALHOME Development FHW!\ Sofr Drink \Vas~c Used Oil Prot:">Tam Income Pm1ncrshiE Prot:rram lmEatt Fcc Grnnts Franchise Management Grant

AsscL'i

Cash and invr:suncnts s 580,492 s 126,815 5 4?0,171 s 128,823 s 3,597,526 s 52.899 s s 224 s Receivables :

T<tx•:s IntC i CSf 726 573 565 61 3,725 73 Grants 153,986 Notes 880,368 592,955 13,147 808,636 Other 57

Rcsrr.ctcc1 cnsh and invcsm1cnt::

with fiscal agent l..;~.nd held for resale

Tot:1l Assets s 1,615,572 $ 720.343 s 503,883 s 937,577 s 3,601.251 5 62,972 s s 224 s

I-' I-'

Liabilities and Fund Balances

00 Liabilities:

Accounts payable s 109,895 s 637 s s 57 s 253 .813 s s s 219 s Salarics/bcnclits payable 1.121 Dr:posits Due to other funds ~321

Total Liabi litic:; 109,895 1,758 57 ~114 219

Fund Bal::~ n ccs

Nonspcndahk 880.891 613.706 23.276 936,467 Restricted 624,786 104 .879 480.607 1,053 3,125, 117 (:2,972 Committed Unassigm:d

Tot•l Fund llohnccs (DeGcits) 1,505.677 71 &,585 5o;.&s3 937.520 3.125.117 62,972

Total Liabilities and Fund Ihlanccs $ 1,615,572 s 720.343 s 503,883 s 937,577 s 3.601 .251 $ 62,972 $ s 224 s (Continul!d)


NONMAJOR GOVERNMENTAL FUNDS June 30, 2018

(Continued)


Town Center Household 1-8 Imperial Legacy Ranch Department of Lighting and Haza rdous Ave EDA Police & Fire 7111 and State Lighting and

Conservation L1ndsca~c District Waste OvcTass Rcvolvin£ Miligation Bus Tcnninal Landscaee District IV Commons

Assets

Cash and in vestments s s 28,833 s s 604,577 s 104, 131 $ 452,295 s s 121.473 s 69,874 Rcccivf\blcs:

Taxes

Interest 8 697 158 522 I 229 80

Gran1s Notes

Other

Restricted c;-.sh ;md invcsnncnts

with fisc;\1 agent Land held for resale

Towl Assets s s 28,841 s s 605,274 s 104,289 s 452,8 17 s I s 121 ,702 s 69,954

I--' Linbilities :md Fund Balonccs I--' \.0

Liabilities: Accounts payable s s 1.537 s s s s s s 828

Salaries/benefits payable

Deposits 275 487,200 61,840

Due to other funds

Total Liabilities 1.812 ~200 828 61.8•10

Fund Balances

Nonspcndnblc Restricted 27,029 104 ,289 452,817 I 120.874 8. 114 Committed 118.074 Unassigned

Totnl Fund Balances (Deficits) 27,029 118,074 104 ,289 452,817 I 120,874 8. 114

Total Liabilities and Fund Balances s s 28.841 s s 605,274 $ 104,289 s 452,817 s I s 12 1,702 s 69.954

(Continued)


~ONMAJOR GOVERNMENTAL FUNDS June 30, 2018

(Continued)

Speci:JI Revenue Fu nds Capital Projects Funds Successor

Fire 2010 llD Po!icc Agency Coopcn:uivc Orange Ave. Park Drainage Post Ofli:e Mitigation Earthguake Projects Grant Housing A~::rrccmcnt Resional Lift Devcl·)2mcnt Facili!}: Grant

Asset~

Cash c: nd investments s 213,149 s s 2,691 s 37,469 s 404,483 s s 238,652 s 226,959 s 256,6&4 s Receivables: Taxes Interest 244 64 I 274 441 404 Grants Notes 3,478 4,758,569 Other 13,436

Restricted cnsh and investments with fisca l ;;~gent

Land held for resale 59,089

Tota l Assets s 213,393 s s 6.169 s :0,905 s 5.222,205 s I s 238,926 s 227,400 s 257,088

I-" Liabil it ies nnd Fun! Balances N 0

Liabilities: Accounts paynblc s s s 26 s 3,442 s s s s F.3,408 s s Salar:cs/bcncfits JE1yablc Deposits Due to other fund~ 13.135

Tot;:~! Li<~biliti~s 13.135 26 _ _ _ 3,442 D.408

Fund Bnl:inccs Nonsp:nd:~b!l!

Rc~=arictcd 213.393 6,143 47,463 5.222.205 Committed 238,926 143,992 251,088

Unassigned (13,135)

Total Fund Del,nccs (Ccficits) 213,393 (13,135) 6.143 47,463 5,222,205 I 238,926 143,992 251,088

Total Liabilities nnd Fund Bn lnnccs s 213,393 s s 6,169 s 50,905 s 5,222.205 s I s 238,926 s 227.400 s 257,088 s (Continued)


NONMAJOR GOVERNMENTAL FUNDS June 30, 2018

(Continued)

Capital Projects Funds

8th St. Federal EDA Lotus liD Facility Overpass £lridgc!Road Highway Proposition La £lrucheric Colonia-El

Grnnt Parallel Crossing Bridge Improvement Administration IB Green Belt Dorndo Street

Assets

Cash and investments s 173.803 s 376.498 s 162,651 s 18,855 s 4,300,856 s s s 8,951 s 19,875 Receivables:

T:lXCS

Interest 200 423 188 21 4.756 9 24 Grants I ,836,776

Notes

Other Restricted cash and investments

with fiscal agent Land held for resale

Total Assets s 174,003 s 376,921 s 162.839 s 18,876 $ 4,305,612 s 1,836. 776 s s 8,960 $ 19,899

1-' Liabilities :wd Fund flalanccs N 1-'

Liabilities: Accounts payable s s s s $ s 138,245 s s s Salaricsfbcndits pay<lhk Deposits 317;100 132,960 15.000 4. 147.568 Due to other funds 1.606,856

Total Liabilities 317.400 132,960 15.000 4.147,568 1,745.101

Fund Il:llnnces Nonspcndahlc Rcsuictcd 174,003 91,675 8,960 19,899 Committed 59.521 29,879 3,876 158,044 Unassigned

Total Fund Balances (Deficits) 174.003 59.521 29.879 3,876 158,044 91,675 8,960 19,899

Total Liabilities and Fund Balances s 174,003 s 376.92 1 s 162,839 s 18,876 s 4.305,612 s 1,836,776 s s 8,960 s 19,899

(Continued)


NONMAJOR GOVERNMENTAL FUNDS June 30, 20 18

(Continued)

C:tpitill Projects Funds Debt Scn·icc Funds To:al LTA Lease Non111ajor Revenue Oucna Vista HCD Community Road 2011C Bonds 2011 A& B Financing LTA Lease Govcm.:ncntal

3onds Landsca~ing Center lmE:rovcmcnt Cit)' Projects Authori!}:: Revenue Bonds Furds

Assets Cash and investments s 2.005.024 s 257.626 s s 1, 126.202 s s 6,2 11 , 124 s s 78.020 s 27.886.0"9 RcccivaJics:

Taxes

fntcrcs: 1,878 336 1,001 I 7,155 27 36.221 Grants 2,054.7<9 Notes 16,866.2 14 Other 35.5D

Restricted cash and invcsm1cnts with fiscal agent 1.763,54H 9,631,227 7.120,687 1,456.511 19,971,973

Land held for rcs<~lc 59.0<9

Total Assets s 3.770,45J s 25 7.962 s s 1.127.203 s 9.631.228 s (:.,218,279 $ 7.120,687 s 1.534.558 $ 56.909,8~8

p Liabilit ies and Fund Ral!lnccs N N

Liabiliti!!s: Accoun ts payable s 16.684 s ·1.063 s s $ $ s s s 775.9f8

Sal<tricslhcnclits paynhlc 4.545 Deposits 1,087,454 6,249,917

Due to other funds 1. 865. 5 ~7

Total Liabilities 16.684 4.063 ___ 1.087.454 8.896.027

Fund llalanccs

Nonspcnd11blc 6,736,0&0

Restricted 3.753.76·:i 253.899 39.749 9.631 ,228 <'.218.279 7,120,687 1,534,558 -19,%6,0S8

Committed 1,433 ,442

Unassig:-tcd (21.7~9)

Total Fund Balances (Deficits) 3.753.766 253 .899 39.749 9,631 .228 6.218.279 7.120.687 1,534,558 58,JI3.83 I

Total Liabilities and J7und Balances s 3.770,45•J s 257.962 s s 1.127.203 s 9,631 .228 s 6.218.279 s 7,120.687 s 1,534.558 s 66,:109,858


123

CITY OF EL CENTRO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 20 18


Library Bus Transportation Home Rental Traffic Home Program Gas Tax CDBG Assistance Shelter Article 3 Program Rehab-1-!UD Safety Income Admin

Revenues: Ta·<es $ s s s s $ $ $ s Intergovernmental 896,561 154,3 13 35,782 3,385 Ch3rgcs for se:-viccs Fines and forfc:itures Interest 5,822 (56) 3.579 1,216 2,108 4,416 5 232 Other 35,306

Total Revenues 902,3 83 (56) 157,892 36,998 37,414 4.416 5 3.617

Expendi tures: Current: Public safety 1,358 Public works 102,874 Parks and recreation

1--' Community development 20.590 3,497 2,272 N Capital outlay 11,088 ..,.

Debt Service: Principal Interest and l!Scal charges

----·--

Total Expenditu res 20.690 I 13.962 3,497 1,358 2,272

Excess (Deficiency) of Revenues over (Under) Expenditure; 902,383 (20,690) (56) 43,930 36,998 33,917 4,416 (1.353) 1,345

Other Financing Sources (Uses): Transfers In Transfers Out (898,273)

Total Othc~ Financing Sources (Uses) (898,273)

--- -----

Net Change in Fund BEianc~s 4,110 (20,690) (56) 43,930 36,998 33,917 4,416 (1,353) 1,345

Func Balances (Defici<s) - Jul y I, :< 017 413 1,555.463 56 276,179 82,055 4,133,736 306,551 1.353 14,252

Func Balances (Defici ts)- June 30, 2G 18 $ 4.523 $ 1.534.773 s s 320.109 s 119,053 s 4.167,653 s 310,967 s s 15,597

(Continued)


NONMAJOR .GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 20 I 8

(Continued)


Recreation Wake Ave Special Asset Local Transportation Home OTS State COPS Annexation Projects Extension Events Forfeiture Authority Grants Grant SLESF Fees

Revenues: Taxes $ $ s s s $ s s $ I ntcrgovcrnrncntal 30,998 2,575,539 106,831 100,272 Charges for services

Fines and forfeitures !!,279 Interest 55 4,466 !22 3,232 52,099 5,657 483 I ,735 !,556 Other !9,449

Total Revenues 3!,053 4,466 !9,57! !4,51! 2,627,638 5,657 !07,3!4 !02,007 !,556

Expendi tures: Current:

Public safety 46,037 63,336 85,426 Public works 25,715 Pa rks and recreation 34,970

t-" Community development 8,300 N Capital outlay 30,998 81,234 2,920,805 32,500 Ul

Debt Service:

Principal

Interest and fiscal charges

Total Expenditures 30,998 34,970 127,271 2,946,520 8,300 95,836 85,426

Excess (Deliciency) of Revenues over (Under) Expenditures 55 4,466 (15,399) (112,760) (318,882) (2,643) 11,478 16,581 1,556

Other f'inancing Sources (Uses): Transfers In Tra nsfers Out (1,330,603)

Total Other Financing Sources (Uses) (1,330,603)

Net Change in Fund Balances 55 4,466 (15,399) (112,760) ( 1 ,649,485) (2,643) 11,478 16,581 1,556

Fund Balances (Deficits) - July I. 2017 3,172 310,026 6,745 269,750 5,103,995 4,345,442 39,703 20 1,424 107,994

Fund Balances (Deficits)- June 30, 20 IS $ 3,227 s 314,492 s (8,654) $ 156,990 s 3,454.510 s 4,342,799 $ 51 ,181 s 218.005 s 109,550

(Continued)


NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 2018

(Continued)


Integrated HUD Entitlement CDBG Housing Enabled CALHOME Development FHWA Soft Drink W~ste Used Oil

Pro12ram Program Income by Local Partners hiE Pro12ram Impact Fcc Grants Frrcnchis~ Mana~emcnl Grant Revenues:

Taxes s s s s s s s $ s lntcrgovcrnm~ntal 523,536 Charges for services 451,301 Fines and forfeitures Interest 8,927 3,292 48,233 894 3 Oth<:r 336 17,291

Total Revenues 532.799 20,583 500,034 894 3

Expenditures: Current: Public safety Public works Parks and rccr~ation

1--' Community development 201,609 20,820 3,160 51,455 N m Capi tal outlay 321,927 I 94,398 125,789

Debt Service: Principal Interest and fi;cal charges

Total Expenditures 523,536 215,218 3,160 5: ,455 125,789

Excess (Deficiency) of Revenues over (Under) Expenditure.; 9,263 (194,635) (3.160) (5 1,455) 374,245 894 (1) 3

Other Financing Sources (Uses): Transfe rs In Transfers Out

Total Other Fi nancing Sources (Uses)

Net Change in Fund Balanc~s 9,263 ( 194,635) (3,160) (5 i ,455) 374,245 894 { I)

Fu nc Balances (Defici ts) - July I, :017 I ,496,414 913,220 507,043 988,975 2,750,872 62,078 1 2

Func Balances (Deficits) - Jur c 30. 2018 $ 1.505 .677 $ 718.585 s 503,883 s 937.520 s 3,125. 11 7 $ 62.972 s $ 5 s

(Continued)



(Continued)


Department Town Center Heusehold Police & 7th and Legacy Ranch

of Lighting and Hazardous l-8lmperial EDA Fire State Bus Lighting and Cons~rvation 1~1ndscaEe District Waste Ave Overpass Revolving Mitigation Terminal LandscaEe District IV Commons

Revenues:

Taxes s s 11 ,450 s s s s $ s 4,306 s Intergovernmental 40 Charges for services

Fines and forfeitures Interest (40) 358 8,596 1,486 6,431 (3) 2.073 993 Other

Total Revenues 11,808 8,596 1.486 6,431 (3) 6,379 993

Expenditures:

Current:

Public safety

Public works 5,229 Parks and recreation 40

f-' Community development 567 32,626 N -....I Capital outlay 14,905

Debt Service:

Principal


Total Expenditures 40 5,229 567 47,531

Excess (Deficiency) of Revenues

over (Under) Expenditures (40) 6,579 8.596 919 6.431 (3) (41. 152) 993


Transfers Out

Total Other Financing

Sources (Uses)

Net Change in Fund Balances (40) 6,579 8,596 919 6,431 (3) (41,1 52) 993

Fund Balances (Ddicits) - July I. 2017 40 20.450 I 09,478 103,370 446,386 4 162,026 7,121

hmd Boiances (Deficits)- June 30.2018 s s 27.029 $ s 118.074 s I 04.289 s 452.817 s 1 $ 120.874 $ 8.114

(Continued)


NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 20 !8

(Continued)

Special Revenue Funds Capita l Project Funds

Successor f-ire liD Police Ag,ency Cooperative Orange A v·:!. p ~Irk Drainage Post Office

Mitigation 20 I 0 Earthquokc Project Grant Housing Agreement Regional Lift DeveiJEment r:acilit~· Grant Revenues:

Ta,cs $ s s $ s $ s $ $ s lntc ~govcmmcntal 1,044 ,092 Charges for services 11,015 f-ines and fo rfeitures Intecest 3,030 !5 52 4,603 (16) 3,393 6,0E5 3,597 Other 82,049

T~tal Revenues 3,030 15 1,044.144 86.652 (16) 3,393 6,0E5 14,612

Expenditures: Current: Public safety 47,358 Public works Parks and recreation

I-' Community dc·;clopmcnt 66,807 !6,929 N co Capital outlay 996,734 :050,323

Debt Service: Principal Interest and li ;cal charges

-------- -

Total Expenc itures 66.807 1.044.092 16.929 :'50,323

Excess (Deficiency) of Revenues over (Under) E:,penditurco 3,030 (66.792) 52 69,723 (16) 3,393 (:'44,23~) 14,612

Othcc f-inancing Sources (Uses): Transfers In Transfers Out

Total Other Financing Sources (U,es)

Net Change in r:und Balances 3.030 (66,792) 52 69,723 (16) 3,393 (:'44,228) 14,612

Fund Balances (Deficits) -lJiy I, 20 I 7 2 I 0,363 (1 3, 135) 72,93 5 47 ,41 I 5, I 52,482 17 235,533 L88,23(1 242,476

Fund Balances (Deficits) - J .me 30.201 S s 2 I 3.393 s (13.1 35) $ 6.143 s 47.463 $ 5.222.205 s I s 238.926 s 143 ,9S·2 s 257.088 s

(Continued)



(Continued)

Capital Project Funds

EDA Lotus liD Facility 8th St. Overpass Bridge/Road Federal Highway Proposition La Brucherie Colonia-EI Grant Parallel Crossin~ Bridge Improvement Administration IB Green Belt Dorado Street

Revenues:

Ta.~cs $ $ s s s $ s $ $ Intergovernmental 489,198 Charges for services

Fines and forfeitures In terest 2,471 5,353 2,313 268 61,796 90 283 Other

Total Revenues 2,47 1 5,353 2,313 268 61,796 489,1 98 90 283

Expenditures: Current: Public safety

Public works

Parks and recreation I-' Community development N ill Capital outlay 489,198

Debt Service: Principal


Total Expenditures 489,198

Excess (Deficiency) of Revenues over (Under) Expenditures 2,471 5.353 2.313 268 61.796 90 283


Transfers Out Total Other financing

Sources (Uses)

Net Change in f'und Balances 2,471 5,353 2,313 268 61,796 90 283

Fund Balances (Deficits) - July I . 2017 171,532 54,168 27.566 3.608 96.248 91,675 8,870 19,616

Fu nd Balances (Deficits) - June 30. 2018 s 174.003 s 59.521 $ 29.879 s 3.876 s 158.044 s 91,675 $ s 8,<;60 s 19.899

(Continued)

SCHEDULES OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES- BUDGET AND ACTUAL


CITY OF EL CENTRO GAS TAX SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL


Revenues:

Intergovernmental

Interest

Total Revenues

Excess (Deficiency) of

Revenues Over (Under) Expenditures

Other Financing Sources (Uses)

Transfers Out

Total Other Financing Sources (Uses)


Fund Balance -July 1

Fund Balance -June 30

$

$

Final Actual

Budget Amount

1,264,085 $ 896,561 $

500 5,822 1,264,585 902,383

1,264,585 902,383

(1 ,260,000) (898,273)

( 1 ,260,000) (898,273)

4,585 4,110

413 413

4,998 $ 4,523 $

13 1

Variance

Positive

(Negative)

(367,524)

5,322

(362,202)

(362,202)

361,727

361,727

( 475)

(475)

Revenues:

CITY OF EL CENTRO LIBRARY ASSISTANCE SPECIAL REVENUE FUND


For the Fiscal Year Ended June 30,2018

Final Budget

Actual

Amount

Variance Positive

(Negative)

Interest $ so $ (5G) $ (1 06) -----'---'-

Total Revenue


Revenues Over (Under)

Expenuitures

Net Change in Fund B<1 lance

Fund Balance - July 1

F11 nd R;:d<lnce- June 30

50

50

50

56

$ 106

(56) (106)

(56) (I 06)

(56) (1 06)

56

$ $ (1 06)

CITY OF EL CENTRO BUS SHELTER SPECIAL REVENUE FUND



Variance

Final Actual Positive

Budget Amount (Negative)

Revenues:

Intergovernmental $ 64,400 $ 154,313 $ 89,913

Interest 200 3,579 3,379

Total Revenue 64,600 I 57,892 93,292

Expenditures:

Current:

Public Works 85 ,500 I 02,874 (17,374)

Capital Outlay 60,000 11,088 48,9 12

Total Expenditures 145,500 113,962 31,53 8

Net Change in Fund Balance (80,900) 43,930 124,830

Fund Balance - July 1 276, 179 276,179

Fund Balance- June 30 $ 195,279 $ 320,109 $ 124,830

133

CITY OF EL CENTRO TRANSPORTATION ARTICLE 3 SPECIAL REVENUE FUND


For the Fisca l Year Ended June 30, 2018

Fina l Actual

Variance

Positive Budget Amount (Negative)

Revenues: Intergovernmental $ J2,000 $ J5,782 $ 3,782

Interest 100 1,216 1,116 Total Revenue 32,100 36,998 4,898

-------Net Change in Fund Balance 32,100 36,998. 4,898

Fund Balance- July 1 82,055 82,055


134

CITY OF EL CENTRO HOME PROGRAM SPECIAL REVENUE FUND



Variance



Revenues:

Interest $ 200 $ 2,108 $ 1,908

Other 10,100 35,306 25,206 Total Revenue 10,300 37,414 27,114

Expenditures:

Current:

Community Development 81,000 3,497 77,503

Total Expenditures 81,000 3,497 77,503


Fund Balance - July I 4,133,736 4, 133,736

Fund Balance - June 30 $ 4,063,036 $ 4, 167,653 $ 104,617

135

Revenues: lntP-rest

Total Revenue

Expenditures: Current:

CITY OF EL CENTRO RENTAL REHAB - HUD SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Fiscal Year Ended June 30,2018

Final Actual Budget Amount

$ 700 $ 4,416

700 4,416

Variance

Positive (Negative)

$ 3,716 3,716


Total Expenditures

280,000 280,000

280,000 280,000




136

CITY OF EL CENTRO HOME PROGRAM INCOME ADMIN SPECIAL REVENUE FUND



Variance



Revenues:


Interest 80 232 152

Total Revenue 1,280 3,617 2,337

Expenditures:

Current:





Fund Balance -June 30 $ 9,532 $ 15,597 $ 6,065

137

CITY OF EL CENTRO RECREATION PROJECTS SPECIAL REVENUE FUND



Variance Final Actual Positive

Budget Amount (Negative) Revenues:

Intergovernmental $ $ 30,998 $ 30,998

Interest 35 55 20

Total Revenue 35 31,053 31,018

Expend itures: Capital outlay 30,998 (30,99R)

Total Expenditures 30,998 (30,998)

Net Change in Fund Balance 35 55 20

Fund Balance- July I 3, 172 3,172

Fund Balance - June 30 $ 3,207 $ 3,227 $ 20

138

CITY OF EL CENTRO WAKE AVE EXTENSION SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND


Variance



Revenues: Interest $ 2,000 $ 4,466 $ 2,466

Total Revenue 2,000 4,466 2,466

Net Change in Fund Balance 2,000 4,466 2,466



139

CITY OF EL CENTRO SPECIAL EVENTS SPECIAL REVENUE FUND



Variance



Revenues:

Interest $ $ 122 $ 122 Other 20,000 19,449 (551)

Total Revenue 20,000 19,571 (429)


Parks and Recreation 53,513 34,970 18,543



Revenues Over (Under) Expenditures (33,513) (15,399) 18, I 14

Other Financing Sources (Uses) Transfers ln 40,000 (40,000)

Total Other Financing Sources (Uses) 40,000 ( 40,000)

Net Change in Fund Balance 6,487 (15,399) (2 1 ,886)

Fund Balance (Deficit)- July I 6,745 6,745

Fund Balance (Deficit)- June 30 $ 13,232 $ (8,654) (21 ,886)

140

CITY OF EL CENTRO ASSET FORFEITURE SPECIAL REVENUE FUND



Variance r:inal Actual Positive


Revenues: Fines and Forfeitures $ 15,000 $ 11,279 $ (3,721) Interest 3,232 3,232

Total Revenue 15,000 14,511 (489)


Public Safety 15 ,000 46,037 (31 ,037) Capital Outlay 81,234 (81,234)

Total Expenditures 15,000 127,27 1 ( 112,27 1)

Excess (Deficiency) of Revenues Over (Under) Expenditures (112,760) (112,760)

Net Change in Fund Balance (112,760) ( 112,760)

Fund Balance - July 1 269,750 269,750

Fund Balance- June 30 $ 269,750 $ 156,990 $ (112,760)

141

CITY OF EL CENTRO LOCAL TRANSPORTATION AUTHORITY SPECIAL REVENUE FUND



Variance



Revenues: Intergovemmental $ 2,670,000 $ 2,575,53 9 $ (94,461) Interest 14,000 52,099 38,099

Total Revenue 2,684,000 2,627,638 (56,362)

Expenditures:

Current:

Public Works 20,000 25,7 15 (5 ,715) Capital Outlay I ,050,000 2,920,805 ( 1 ,870,805)

Total Expenditures 1,070,000 2,946,520 (I ,876,520)

Excess (Defici ency) of Revenues Over (Under) Expenditures 1,614,000 (318 ,882) (1 ,932,882)

Other Financing Sources (Uses):

Transfers Out (I ,33 0,604) (1 ,33 0,603)

Total Other Financing Sources (Uses) (1,330,604) (1,33 0,603)

Net Change in Fund Balance 283,396 (1 ,649,485) (1 ,932,881)

Fund Balance- July I 5, I 03,995 5, 103,995

Fund Balance- June 30 $ 5,3 87,3 91 $ 3,454,5 10 $ ( 1,932,881)

142

CITY OF EL CENTRO HOME GRANTS SPECIAL REVENUE FUND



Variance



Revenues:

Interest $ 160 $ 5,657 $ 5,497

Total Revenue 160 5,657 5,497

Expenditures:

Current:

Community Development 8,300 (8,300)

Total Expend itures 8,300 (8,300)

Net Change in Fund Balance 160 (2,643) (2,803)

Fund Balance - July 1 4,345,442 4,345,442

Fund Balance- June 30 $ 4,345,602 $ 4,342,799 $ (2,803)

143

CITY OF EL CENTRO OTS GRANT SPECIAL REVENUE FUND



Variance

Filia l Actual Positive


Revenues :

Intergovemmental $ $ 106,831 $ 106,831 Interest 60 483 423

Total Revenue 60 107,314 107,254


Public Safety 63,336 (63 ,336) Cap ital Outlay 32,500 (32,500)

Total Expemlitures 95,836 (95 ,836)

Net Change in Fund Balance 60 l 1,478 1 1,418

fund Balance - July 1 39,703 39,703

Fund Balance- June 30 $ 39,763 $ 51,181 $ 11 ,4 18

144

CITY OF EL CENTRO STATE COPS SLESF SPECIAL REVENUE FUND



Variance



Revenues:

Intergovernmental $ I 00,000 $ 100,272 $ 272

Interest 500 1,735 1,235

Total Revenue I 00,500 102,007 1,507

Expenditures :

Current:

Public Safety 174,053 85,426 88,627


Net Change in Fund Balance (73 ,553) 16,581 90,134



145

Revenues: Interest

Total Revenue

CITY OF EL CENTRO ANNEXATION FEES SPECIAL REVENUE FUND


For the Fiscal Year Ended June 30, 20 I 8


$ /UU $ 1,556 $

700 1,556

Net Change in Fund Balance 700 1,556

found Dalance -July 1 107,994 107,994

Fund Balance- June 30 $ 108,694 $ 109,550 $

146

Variance Positive

(Negative)

856

856

856

856

CITY OF EL CENTRO HUD ENTITLEMENT PROGRAM SPECIAL REVENUE FUND



Variance



Revenues:


Interest 1,700 8,927 7,227

Other 336 336

Total Revenue 407,513 532,799 125,286

Expenditures:

Current :


Capital Outlay 217,066 321,927 (104,861)

Total Expenditures 475,813 523,536 (47,723)


Fund Balance- July 1 1,496,414 1,496,414

Fund Balance - June 30 $ 1,428,114 $ 1,505,677 $ 77,563

147

CITY OF EL CENTRO CDBG PROGRAM INCOME SPECIAL REVENUE FUND



Variance



Revenues:

Interest $ 500 $ 3,292 $ 2,792

Other 25 ,740 17,29 1 (8,449)

Total Revenue 26,240 20,5 R3 (5,657)


Community Development 11,092 20,820 (9,72 8) Capital Outl ay 195,032 194,398 634

Total Expenditures 206,124 2 15,2 18 (9,094)

Net Change in Fund Balance (1 79,884) (J 94,635) (14,75 1)

Fund Balance- July I 91 3,220 9 13,220

Fund Balance- June 30 $ 733,33 6 $ 7 18,585 $ (14,75 1)

148

CITY OF EL CENTRO HOUSING ENABLED BY LOCAL PARTNERSHIP SPECIAL REVENUE FUND



Variance

Final Actual Positive ·


Revenues :

Interest $ 1,200 $ $ (1,200)

Total Revenue 1,200 (I ,200)

Expenditures:

Current:



Net Change in Fund Balance (468,800) (3,160) 465,640

Fund Balance- July I 507,043 507,043

Fund Balance- June 30 $ 38,243 $ 503,883 $ 465 ,640

149

CITY OF EL CENTRO CALHOME PROGRAM SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND


Variance


Budget Amount (Negative) Revenues:

Interest $ 120 $ $ (120) Tota l Revenue 120 ( 120)

Expend itures:

Current:

Community Development 51,455 51,455

Total Expend itures 51,455 51,455

Net Change in Fund Balance (51,335) (51 ,455) ( 120)

fund Balance- July I 988,975 988,975

Fund Balance- June 30 $ 937,640 $ 937,520 $ (120)

150

CITY OF EL CENTRO DEVELOPMENT IMPACT FEE SPECIAL REVENUE FUND



Variance



Revenues:

Charges for services $ 570,820 $ 451,801 $ (119,019)

Interest 5,015 48,233 43,218

Total Revenue 575,835 500,034 (75,801)

Expenditures :

Capital Outlay 1,544,000 125,789 1,418,211

Total Expenditures 1,544,000 125,789 1,418,211

Net Change in Fund Balance (968, 165) 374,245 1,342,410

Fund Balance - July 1 2,750,872 2,750,872

Fund Balance - June 30 $ 1,782,707 $ 3,125,117 $ 1,342,410

15 1

Revenues:

Interest

Total Revenue

CITY OF EL CENTRO FHW A GRANTS SPECIAL REVENUE FUND



$

Final

Budget

400 400

Actual Amount

894 894

$

Net Change in Fund Balance 400 894


Fund Balance- June 30 $ 62,478 $ 62,972 $

152

Variance Positive

(Negative)

494 494

494

494

CITY OF EL CENTRO TOWN CENTER LIGHTING AND LANDSCAPE DISTRICT SPECIAL REVENUE FUND



Variance



Revenues:

Taxes $ 12,000 $ 11,450 $ (550)

Interest 25 358 333

Total Revenue 12,025 11,808 (217)

Expenditures:

Current:

Public Works 22,600 5,229 17,371


Net Change in Fund Balance (1 0,575) 6,579 17,154



153

Revenues:

CITY OF EL CENTRO 1-8 IMPERIAL AVE OVERPASS SPECIAL REVENUE FUND



Fina l Actual Budget Amount

Variance

Positive

(Negative)

l11lt::It!Sl $ 3,600 $ 8,596 $ 4,996 Total Revenue 3,600 8,596 4,996

Net Change in .Fund Balance 3,600 8,596 4,996

Fund Balance - July 1 109,478 109,478


154

CITY OF EL CENTRO EDA REVOLVING SPECIAL REVENUE FUND



Variance Final Actua l Positive


Revenues:

Intergovernmental $ 5,500 $ $ (5 ,500) Interest 700 1,486 786

Total Revenue 6,200 1,486 (4,714)


Community Development 600 567 33 Total Expenditures 600 567 33

Net Change in Fund Balance 5,600 919 (4,681)

Fund Balance- July 1 103,370 103 ,370

Fund Balance- June 30 $ 108,970 $ 104,289 $ (4,681)

155

Revenues;

CITY OF EL CENTRO POLICE & FffiE MITIGATION SPECIAL REVENUE FUND



Final Actua l

Budget Amount

Variance

Pos itive (Negative)

Interest $ 2,900 $ 6,431 $ 3.53 1 Total Revenue 2,900 6,431 3,53 1

Net Change in Fund Balance 2,900 6,~31 3,531


Fund Balance - June 3 0 $ 449,286 $ t152,817 $ 3,531

156

CITY OF EL CENTRO LEGACY RANCH LIGHTING AND LANDSCAPING DISTRICT SPECIAL REVENUE FUND



Variance Final Actual Positive


Revenues:

Taxes $ 7,150 $ 4,306 $ (2,844) Interest 400 2,073 1,673

Total Revenue 7,550 6,379 (1,171)

Expenditures:

Current: Community Development 35,000 32,626 2,374

Capital Outlay 15,000 14,905 95



Revenues Over (Under) (42,450) (41,152) 1,298


Transfers Out (35,000) 35,000

Total Other

Financing Sources (Uses) (35,000) 35,000

Net Change in Fund Balance (77,450) (41, 152) 36,298



157

CITY OF EL CENTRO IV COMMONS SPECIAL REVENUE FUND



Revenues: Interest

Total Revenue

Expenditures: Current: Community Development Total Expenditures


Fund Balance- July I

Fund Balance - June 30

$

$


200 $ 993 •• -~- ...... ,q · -

200 993

1,000 1,000

(800) 993

7,121 7,121

6,321 $ 8, 114 ··--·- ·· -·····--·-·

158

Variance Positive

(Negative)

$ 793 793

1,000 1,000

1,793

$ 1,793 ... .

Revenues:

Interest

Total Revenue

CITY OF EL CENTRO FIRE MITIGATION SPECIAL REVENUE FUND



Final Actual

Budget Amount

$ 500 $ 3,030

500 3,030

Net Change in Fund Balance 500 3,030


Fund Balance- June 30 $ 2 10,863 $ 213,393

159

Variance

Positive

(Negative)

$ 2,530

2,530

2,530

$ 2,530

CITY OF EL CENTRO liD PROJECT SPECIAL REVENUE FUND




Revenues : Interest $ $ 15 Other 1,000

Total Revenues 1,000 15


Cnrnrnunily Development 66,807 Total Expenditures 66,807

Net Changes in Fund Balance 1,000 (66,792)


Fund Balance- June 30 $ 73,935 $ 6,143

160

Variance Positive

(Negative)

$ 15 (1,000)

(985)

(66,807) (66,807)

(67,792)

--------

$ (67,792)

CITY OF EL CENTRO POLICE GRANT SPECIAL REVENUE FUND




Revenues: Intergovernmental $ 1,000,000 $ 1,044,092 Interest 52

Total Revenues I ,000,000 1,044,144

Expenditures: Current: Public Safety 47,358

Capital Outlay 1,050,000 996,734 Total Expenditures 1,050,000 1,044,092

Net Changes in Fund Balance (50,000) 52


Fund Balance- June 30 $ (2,589) $ 47,463

161

Variance Positive

(Negative)

$ 44,092 52

44,144

(47,35 8) 53,266 5,908

50,052

$ 50,052

CITY OF EL CENTRO SUCCESSOR AGENCY HOUSING SPECIAL REVENUE FUND




Revenues: Interest $ $ 4,603 Other 10,600 82,049

Total Revenues 10,600 86,652

Expenditures: Cunent:

Community Development 17,000 16,929

Total Expenditures -- --_______ 1_2, 000 16,929

Net Changes in Fund Balance (6,400) 69,723

Fund Balance- July I 5, 152,482 5, 152,482

Fund Balance- June 30 $ 5,146,082 $ 5,222,205

162

Variance Positive

(Negative)

$ 4,603 71,449

76,052

71

71

76, 123

$ 76,123

CITY OF EL CENTRO COOPERATIVE AGREEMENT SPECIAL REVENUE FUND




Revenues: Interest $ $ ( 16)

Tota l Revenues (16)

Excess (Deficiency) of Revenues Over (Under) Expenditures ( 16)

Other Financing Sources (Uses) Transfers Out (8,842)

Total Other Financing Sources (Uses) (8,842)

Net Changes in Fund Balance (8,842) ( 16)

Fund Balance- July 1 17 17

Fund Balance- June 30 $ (8,825) $

163

Variance Positive

(Negative)

$ (16)

( 16)

(16)

8,842

8,842

8,826

$ 8,826

CITY OF EL CENTRO ORANGE AVE REGIONAL LIFT CAPITAL PROJECTS FUND



Final Budget

Revenues :

Interest $ 1,200 Total Revenues 1,200

Net Change in Fund Balance 1,200

Fund Balance - July I 235,533

Fund Balance- June 30 $ 236,733

164

Actual Amount

$ 3,393 3,393

3,393

235,533

$ 238,926

Variance

Positive (Negative)

$ 2, 193

2, 193

2, 193

$ 2, 193

CITY OF EL CENTRO

PARK DEVELOPMENT CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL


Variance



Revenues:

Interest $ 2,000 $ 6,085 $ 4,085

Total Revenues 2,000 6,085 4,085

Expenditures :

Capital Outlay 517,000 350,323 166,677


Net Change in Fund Balance (515,000) (344,238) 170,762

Fund Balance - July 1 488,230 488 ,230

Fund Balance- June 30 $ (26,770) $ 143,992 $ 170,762

165

CITY OF EL CENTRO DRAINAGE FACILITY CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Fiscal Year Ended June 3 0, 2018

Variance



Revenues:

Charges for Services $ $ 11 ,015 $ 11,015 Interest 1,800 3,597 1,797

Total Revenues I ,800 14,612 12,812

Expenditures: Capital Outlay 100,000 100,000

Total Expenditures 100,000 100,000



Fund Balance- Jun e 30 $ 144,276 $ 257,088 $ 112,81 2

166

Revenues:

CITY OF EL CENTRO LOTUS PARALLEL CAPITAL PROJECTS FUND



Final 1\.ctual Budget Amount

Variance Positive

(Negative)

Interest $ 1,800 $ 5,353 $ 3,553 Total Revenues 1,800 5,353 3,553

Net Change in Fund Balance 1,800 5,353 3,553

Fund Balance - July I 54,168 54,168


167

Revenue~:

Interest Total Revenues

CITY OF EL CENTRO liD FACILITY CROSSING CAPITAL PROJECTS FUND



Final Actual

Budget Amount

$ ROO $ 2,3 13

800 2,3 13

Net Change in Fund Balance 800 2,3 13


Fund Balance- June 30 $ 28,366 $ 29,879

168

Variance Posi tive

(Negative)

$ 1,513 I ,5 13

I ,513

$ l ,513

CITY OF EL CENTRO 8TH STREET OVERPASS BRIDGE CAPITAL PROJECTS FUND



Final Budget

Actual Amount

Variance Positive

(Negative)

Revenues: Interest $ 90 $ 268 $ 178

Total Revenues 90 268 178

Net Change in Fund Balance 90 268 178


Fund Balance- June 30 $ 3,698 $ 3,876 $ 178

169

CITY OF EL CENTRO BRIDGE/ROAD IMPROVEMENT CAPITAL PROJECTS FUND


For the Fiscal Year Ended June 30, 20 !8


Revenues:

Interest $ 20,000 $ 6!,796 Total Revenues 20,000 6!,796

Net Change in Fund Balance 20,000 6!,796


Fund Balance- June 30 $ !!6,248 $ !58,044

170

Variance Positive

(Negative)

$ 4!,796 4!,796

4!,796

$ 41,796

CITY OF EL CENTRO FEDERAL HIGHWAY ADMINISTRATION CAPITAL PROJECTS FUND



Revenues :

Intergovernmental

Total Revenues

Expenditures:

Capital Outlay

Total Expenditures


Fund Balance- July I

Fund Balance- June 30


Final Actual

Budget Amount

$ I ,909,000 $ 489,198

I ,909,000 489,198

1,909,000 489,198

1,909,000 489, 198

91,675 91,675

$ 91 ,675 $ 91 ,675

171

Variance

Positive

(Negative)

$ (I ,419,802)

(I ,419,802)

I ,419,802

1,419,802

$

Revenues: Interest

Total Revenues

CITY OF EL CENTRO LA BRUCHERIE GREEN BELT CAPITAL PROJECTS FUND



Final Actual

Budget Amount

$ 40 $ 90 $

40 90

Net Change in Fund Balance 40 90


Fund Balance - June 3 0 $ 8,910 $ 8,960 $

172

Variance

Positive

(Negative)

50

50

50

50

CITY OF EL CENTRO COLONIA ELDORADO STREET CAPITAL PROJECTS FUND



Revenues: Interest $

Total Revenues


Fund Balance " July I

Fund Balance - June 30 $

Final Budget

100

100

100

19,616

19,716

173

$

$

Actual Amount

283

283

283

19,616

19,899

$

$

Variance

Positive (Negative)

183

183

183

183

Revenues:

Intergovernmental

Interest

Total Revenues

Expenditures:

Current:

Pub li c Works

Capital Outlay

CITY OF EL CENTRO LTALEASEREVENUEBONDSCAPITALPROJECTSFUND



fina l Actual

Budget Amount

$ 280,000 $ 272,625

30,000 71,042

310,000 344,?.67

8,800 7,450

2,600,000 375,874

Total Expenditures 2,6og,1wo 383,324

Net Change in Fund Balance (2,298,800) (39,057)

Fund Balance- July I 3,792,823 3,792,823 -----~-·· ·-· -

Fund Dalance- June JO $ 1,494,023 $ 3,753 ,766

174

Variance

Positive (Negative)

$ (7,375)

4 1,642

34,267

I ,350

2,224, 126

2,225,476

2,259,743

$ 2,259,743

CITY OF EL CENTRO BUENA VISTA LANDSCAPING AND LIGHTING DlSTRICT CAPITAL PROJECTS FUND



Variance

Final A<.:tual Positive


Revenues:

Taxes $ 4,650 $ 2,939 $ (I ,7 11) Interest 600 3,737 3, 137

Total Revenues 5,250 6,676 1,426

Expenditures:

Current:





Expenditures (31 ,450) (II ,672) 19,778

Other Financ ing Sources (Uses)

Transfers Out (31 ,500) 31,500

Tota l Other

Financing Sources (Uses) (31 ,500) 31,500

Net Change in Fund Barance (62,950) (II ,672) 51,278

Fund Balance- July I 265,57 1 265,57 1

Fund Balance- June 30 $ 202,62 1 $ 253,899 $ 51,278

175

Revenues:

Interest Tolal Revenues

CITY OF EL CENTRO ROAD IMPROVEMENT CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2018


$ 6,500 $ 11,676 6,500 II ,676

Net Change in Fund Balance 6,500 11,676


Fund Balance - June 30 $ 34,573 $ 39,749

176

Variance Positive

(Negative)

$ 5,176 5,176

5,176

$ 5,176

CITY OF EL CENTRO

2011C BONDS CITY CAPITAL PROJECTS FUND



For the Fiscal Year Ended June 30, 20 I 8

Variance



Revenues:

Interest $ 4,000 $ 62,179 $ 58,179

Total Revenues 4,000 62,179 58,179

Expenditures:

Capital Outlay 6,000,000 6,000,000

Total Expenditures 6,000,000 6,000,000



Expenditures (5,996,000) 62,179 6,058, I 79

Net Change in Fund Balance (5 ,996,000) 62,179 6,058,179

Fund Balance- July 1 9,569,049 9,569,049

Fund Balance- June 30 $ 3,573,049 $ 9,631,228 $ 6,058, I 79

177

CITY OF EL CENTRO

2011 A & B PROJECTS CAPITAL PROJECTS FUND



FOR THE F1SCAL YEAR ENDED JUNE 30,20 18

Final Budget Actual

Revenues lnleres l $ 32,000 $ 88,308 $

Total Revenues 32,000 88,308

Net Changes in Fund Balances 32,000 88,308

Fund Balance - July 1 6, 129,97 1 6, 12Y,971

Fund Balance - June 30 $ 6, 161,97 1 $ 6,2 18,279 $

178

Variance Positive

(Negative)

56,3 08

56,308

56,308

56,308

CITY OF EL CENTRO LTA LEASE REVENUE BONDS DEBT SERVICE FUND



Variance

Fina l Actua l Positive


Revenues:

Interest $ 15,000 $ 16,873 $ 1,873

Total Revenues 15,000 16,873 1,873

Expenditures:

Debt Service:

Principal 444,034 420,000 24,034

Interest and Fiscal Charges 907,561 887,603 19,958

Total Expenditures 1,351,595 1,307,603 43,992



Expenditures (1 ,336,595) (1,290,730) 45,865


Transfers In 1,351,595 1,307,603 (43,992)

Total Other

Financing Sources (Uses) I ,351,595 I ,307,603 (43,992)

Net Change in Fund Balance 15,000 16,873 I ,873

Fund Balance - July 1 I ,517,685 1,517,685

Fund Balance- June 30 $ I ,532,685 $ I ,534,558 $ I ,873

179

CITY OF EL CENTRO FINANCING AUTHORITY DEBT SERVICE FUND



Variance



Revenues:

Interest $ $ ?.11 ,9Rn $ 211,986 Other 1,175,362 (1,1 75,362)

Total Revenues 1,175,362 2 11,986 (963,376)

Expenditures:

Debt Service:

Principal 775,000 775,000

Inleresl anJ Fiscal Charges 400,lfi2 211,807 188,555

Total Expenditures 1,175,362 986,807 188,555

Net Change in Fund Balance (774,821) (774,821)

Fund Balance - July 1 7,895,508 7,R95,508

Fund Balance - June 30 $ 7,895,508 $ 7,120,687 $ (774,82 1)

180

COMBINING STATEMENTS NONMAJOR PROPRIETARY FUNDS

PROPRIETARY FUNDS

Proprietary funds are used to account for operations that are financed and operated in a manner similar to private business enterprises- for these funds, it is the intent of the City Council that the costs of providing goods or services to the general public on a continuing

basis be financed or recovered primarily through user charges.

Transit- This fund is used to account for revenues and expenses associated with a demand response public transportation service.

Solid Waste- This fund is used to account for revenue and expenditures associated with the collection and disposal of solid waste.

l8l

Assets: Current Assets: Cash and Investmen ts Receivables Ar.~nunt> Rr<:~ivnble (Net of Allowance fur Uncollectibles)

Interes t Receivable

Total Current Assets

Total Assets

Liabilities: Curren t Liabilities:

Accounts Payable Due to Other Funds Deposits Puynble Total Current Liabi lities

Totnl Liabilities

Net !'os ition: Unrestricted

Net Posi ti on

CITY OF EL CENTRO NON!HAJOR PROPRIETARY FUNDS

COi\'lBINING STATEMENT OF NET POSITION June 30, 20 18

Transit

$

$

182

Solid Waste Tota ls

$ I 04,344 $ 104,3 44

334,'173 334,4 73 345 345

439,162 439, 162

439,162 439, 162

162,265 162,265 185,830 185,830 72,000 72,000

420,095 420,095

420,09) 420,095

19,067 19,067 $ 19,067 $ 19,067

CITY OF EL CENTRO 1\'0NMAJOR PROPRIETARY FliNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30,2018

Solid Transit Waste

Operating Revenues Charges for Serv ices $ $ 1,862,502

Total Operat ing Revenues I ,862,502

Operating Expenses Supplies and Services 273,540 1,706,546 General and Administrative 179,699 Total Operating Expenses 273,540 1,886,245

Operating Income (Loss) (273,540) (23 ,743 )

Non-Operating Revenue (Expenses) Interest Revenue 790 190

Total Non-Operating Revenue (Expenses) 790 190

Changes in Net Position (272,750) (23,553)

Net Position- Beginni ng of Fiscal Year 272,750 42,620

Net Position- End of Fiscal Year $ $ 19,067

183

Totals

$ I ,862,5 02 I ,862,502

1,980,086 179,699

2,159,785

(297,283)

980

980

(296,303)

315,370

$ 19,067

CITY OF EL CENTRO NONMA.JOR PROPRIETARY FUNDS

COMBIN ING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 20 18

Transit CASH FLOWS FROM OPERATING ACTIVITIES:

Cash Re~eived fron1 Use1s $ Cash Payments to Suppliers and Contractors (273,540) Cash Payments for General and Adm inistrat ive Expenses

Net Cash Prov ided (Used) By Operating Activit ies (273,540)

CASH FLOWS FROM NONCAPITAL FfNANCING ACTIVITIES Cash Payments for lnterfuml Burrowing

Net Cash Provided (Used) By Noncap ital Financing Activities ~~--~w-

CAS H FLOWS FROM INVESTING ACTIVITIES: Interes t Received 988

Net Cash Provided (Used) in Investi ng Activi ti es 988

NET INCREASE (DECREASE) IN CASH ANU CASH EQUJV ALENTS (272,552)

CASH AND CASH EQU IVALENTS, BEGINNING OF FISCAL YEAR 272,552

CASH AND CASH EQUIVALENTS, EN D OF FISCAL YEAR $

Reconciliation to Statement of Net Posit ion: Cash and Cash Equivalents $

Ci-\SH FLOWS FROM OPERATING ACTIVITIES: Opr.rMinc ln r.nrne ( l .ns~) $ (?.71' ~40)

Changes in Assets and Liabi lit ies: (Increase) Decrease in Accounts Receivable Increase (Decrease) in Accoun ts Payable and Accrued Liabilities

Total Adjustments

Net Cash Provided (Used) By Operating Activit ies $ (273,540)

184

Solid Waste Total

s 2, 125,907 $ 2, 125,907 (1,809,753) (2,083.293)

( 179,699) (179,699)

136,455 ( 137,085)

(32,301) (32,30 1)

____ Q2,30J l_ (32,30 1)

190 1,178

190 1, 178

I 04,344 ( 168,208)

272,552

$ I 04,344 $ 104,344

$ I 04,344 $ 104 ,344

$ (7.1 ,741) $ (297,283)

263,405 263,405 ( I 03,207) (I 03,207)

160,198 160, 198

$ 136,455 $ ( I 37 ,085)

INTERNAL SERVICE FUNDS

Internal service funds are used to account for the financing of goods or se1>tices provided by one department or agency to other departments or agencies of the City on a cost

reimbursement basis.

W01·kers' Compensation - This fund is used to account for the revenue and expenses associated with providing Workers' Compensation benefits.

Post Employment Benefits - This fund is used to account for the revenue and expenses associated with providing unemployment benefits.

Group Health Insurance - This fund is used to account for the revenue and expenses associated with providing group health benefits.

Motor Vehicle - This fund is used to account for costs of operating and maintaining automotive equipment used by City departments.

185

CITY OF EL CENTRO INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION June 30, 2018

Post Workers' Employment Group Health

Compensation Benefi ts ln surrmc:e: ASSETS AND DEFERRED OUTFLOW OF RESOURCES: A55C t5:

Cash and Investments s 2,326,369 s I ,020,045 s 4, 17 1,3 12 Account Rece ivable 24, 11 2 Interest Receivable 5 027 I 847 2,765 ___

Total Assets 2,33 1 ,396 I ,0" I ,R9 ?. 4, 198, 189

Deferred outfl ow of resources: Pension

Total Deferred Outfl ow of Resources

LIABILITIES AND DEFERRED fNFLOW OF RESOURCES: Liabilities:

Accounts Payabic 92 ,521 5,960 39 1.537 Unearned revenue 24, 11 2 Salaries/Benefi ts Payable Net Pension Liability

Total Liab ilities 92,52 1 5,960 •115,6•19

Dcfe r~ eJ inflow of resources: Pens ion

TotaJ Deferred In flow ofRe>ourcc5

NET POSITION Unrestricted 2,238,875 1,0 15,932 3,782 ,540

Tota l Net Posit ion s 2,238 ,875 s 1,0 15,932 s 3,782,540

186

Motnr Vrhi r. lc Totals

s 316,894 7,834,620

24,1 12

406 10,045

3 17,300 7,868,777

108, 143 108, 143

108, 1•13 108. 1•13

25,200 5 i5.2 18

24, 11 2

5,358 5,358

340,547 340,54 7

37 1 ' 105 885.235

2,772 2,772

2.772 nn

51,566 7,088,913

s 5 1,566 7,088,9 13


COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

For the Fisca l Year Ended June 30, 20 18

Post

Workers' Employme nt Group Health

Comeensat ion Benefi ts Insurance Motor Vehicle Operat ing Revenues:

Charges tor Services s I ,507 ,285 $ 322,745 3,254,0 10 s <1 43,649 Other 52,42 1 7 I ,86 I

Total Operating Revenues I ,559,706 322,745 3,325.871 443,649

Operating Expenses:

Personnel Services 469,164 234, 147 Supplies and Serv ices 2, 154, I 05 50,848 2,890,183 200,056 Total Ope rati ng Expenses 2, 154, 105 520,0 12 2,890,183 434 ,203

Operati ng Income (Loss) (594,399) (197,267) 435,688 9,446

Non-Operating Revenue:

In teres t Revenue 22,409 16,668 5 1,877 3,087

Total Non-Opera ting Revenue 22,409 16,668 5 1,877 3,087

Change in Net Posi ti on (57 I ,990) ( 180,599) 487,565 12,533

Net Posi tion- Beginning of Fiscal Year 2,8 10,865 1,196,53 I 3,294,975 39,033

Net Pos ition- End of Fiscal Year s 2,238,875 s I ,0 I 5,932 s 3,782,540 s 51,566

187

Totals

5,527,689

124,282

5,65 I ,97 I

703,31 I

5,295,192

5,998,503

(346,532)

94,04 1

94,04 I

(252,49 1)

7,34 1,404

s 7,088,9 I 3


COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2018

Workers' Post Employme nt Group Heal th Compensa tion Benefit s Insurance

CAS H FLOWS FROM OPERATING ACTIVITIES: C<C> II Rcceiveu rl UIII UscJS s 1,5~9.706 s 322,745 s 3,325,87 1 Cash Payments to Suppli ers and Contrac tors (2, 168,280) (44,888) (2,806,925) Cash l'aymenls lor l:: mployees and l:lcnelit Programs (469, 164)

Net Cash Provided (Used) By Opemt ine Ac tivi lies (li08 ,5 7~) ( 191)07) ~ I R.9•11i

CASH fLOWS FROM INVESTING ACTIV ITIES: Interest Received 22 ,409 16,668 5 I ,877

Net Cosh Provided (Used) In Investing Activities 22,409 16,668 5 1,877

NET rNCREASE (DECREASE) rN CASH AND CASH EQU IVALENTS (586.165) (17•1,639) 570,823

CASH AND CASH EQUIVALENTS, BEGrNNING OF FISCAL YEAR 2,9 12,53•1 I , 194,684 3,600,489

CASH AND CASH EQUIVALENTS, END Of fiSCAL YEAR s 2,}26,369 s I ,020,045 s 4, 17 1,3 12

Reconc iliation with Statement or Net Position Cash and lnveztment> s 2,326,369 s I ,020,0•15 s •1, 171.3 12

CASH AND CASH EQUIVALENTS s 2,326,369 s 1,020 ,045 s 4.171,312

Reconciliation or Operating Income (Loss) lo Net Cash Provided (Used) by Operat ing Act ivities Operating Income (Loss) (594,399) s ( 197,267) s 435,688

l. h rme~" in Ac;~;'' ' " :mrl l .i:lbi lil iP-:; :

(Increase) Decrease in Receivables lncJCOie (Decrea,e) Acco unt$ Puyu!Jie unci

Accrued Liabililies ( 14 , 1'/5) ),960 83,258 Increase (decrease ) in net pension liability

Total Adjustments ( 14, 175) 5,960 83.258

Net Cash Prov ided (Used) By Operating Ac livities (608,574) s ( 191 ,307) s 5 18,946

138

Motor Vehicle Totals ----

443 ,649 s 5,6) I ,97 1

( 174,856) (5,194,949)

(1:!0)60) (o~~.)JO)

•18,427 (232,508)

3,087 94,04 1

3,087 94,041

51,5 14 (1 38,467)

265,380 7,973 ,087

s 3 16,894 s 7,834,620

3 16,89•1 7,834 620

s 3 16,894 s 7,834 ,620

s 9,446 (346,532)

5,063 80, 106

33,9 18 33,9 18

38,98 1 114 ,024

s 48,427 (232 ,508)

FIDUCIARY FUNDS

Fiduciary funds are used to account for the t·eceipt and disbursement of various taxes, deposits, deductions, and property collected by the City, acting in the capacity of an agent

for distdbution to other governmental units or other organizations.

Trust Funds

Successor Agency Administration - This fund set up to account for revenue and expenses incurred in the dissolution of the Redevelopment Agency.

Successor Agency Capital Project - This fund set up to administer the completion of projects previously administered by the Redevelopment Agency Capital Project Fund.

Successor Agency Debt Service - This fund set up to account for debt service payment previously paid the Redevelopment Agency Debt Service Fund.

Successor Agency Revolving Loan- This fund set up to account for revolving business loans previously administered by the Redevelopment Agency.

Agency Fund

Legacy Ranch CFD - This fund collects assessments and pays costs and debt service for the CFD within the City.

189

Assets: Cash and Investments

CITY OF EL CENTRO PRIVATE-PURPOSE TRUST FUNDS

COMBINING STATEMENT OF NET POSITION Jun e 30, 20 18

Successor Successor Successor Agency Agency

Age ncy Ca pital Debt Ad mi nistmtion Project Service

s 340,834 s 70 s 2,794,509 Caih and lnveGtment G with I'iGcal Agent, Rc~tr i o t od ~.6>17,390 ~.551,553

In terest Receivable 86 232 Notes Recci vdlJic Other Receivable Advances to Ci ty of El Cen tro 9,4 13,455

Discount for advances to City of El Ce ntro 850,9 14 Capital Assets, Not Being Oepreciatecl 7,458,729 Capital Assets, Net of Accum ul ated Deprec iation 12,795,363 Total Assets 340,920 33, 165,92 1 5,347,294

Liabilities: Accoun ts Payable 13,1 6 1 47,390 Sa la ries/Benefits Payable 2,946 Interest Payable 290,1 2 1 Noncurrent Liabilties: Due wi thin One Year 1,674 ,9 15 Oue in Mnr<' than One Y~nr 29,668,520 Tota l Liabi lities 16, 107 47,390 3 1,633,556

Net Position: Unrestricted 324,8 13 33, 11 8,53 1 (26,286,262) Tota l Net Position (De!lc it) s 324,8 13 33 ,1 18,53 1 £ (26,286,262)

190

Successor Agency

Revolving Loan Totals

s 14,721 s 3,150,134

5, 199,943

44 362

59,044 59,044

9,4 13,455

850,9 14

7,4 58,729

__ 1_2,795,363

73,809 38,927,944

60,55 1

2,946

290, 12 1

1,674,9 15

!9,668,520

3 1,697,053

73,809 7,230,89 1

73,809 $ .. _7.,!.10,R9 1

CITY OF EL CENTRO PRIVATE-PURPOSE TRUST FUNDS

COMBINING STATEMENT OF CHANGES IN NET POSITION For the Fisca l Year Ended June 30, 20 18

Successor Successor Successor Successor Agency Agency Agency

Agency Capi tal Debt Revolving

Administration Projec t Service Loan Totals

A dditions:

In vestment Revenue $ 3,623 $ 19,4 10 $ 55,646 $ 2,588 $ 81,267

lntergovemmcnta l 260,459 260,459 Property Taxes 3,523,675 3,523,675

Total Add itions 264,082 19,4 10 3,579,32 1 2,588 3,865,40 1

Deductions:

Ad ministra ti on

Commun ity Development 99,7 18 99,7 18

Deprec iat ion 57 1, 104 571,104

Interest Expense 11 5,988 I ,60 1,309 1,717,297

Total Deductions 99,7 18 687,092 I ,601,309 2,388, 119

Excess (Detic iency) of Addit ions Over (Under) Deletions 164 ,364 (667,682) I ,978,012 2,588 1,477,282

Change in Net Position 164 ,364 (667 ,682) 1,978,0 12 2,588 1,477,282

Ne t Position (Deticit), July I 160,449 33,786,2 13 (28 ,264,274) 71,221 5,753,609

Net Pos it ion (Deficit), June 30 $ 324,8 13 $ 33 , 118,53 1 $ (26,286,262) $ 73,809 $ 7,230,89 1

19 1

CITY OF EL CENTRO AGENCY FUND

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

For the Fiscal Year Ended June 30, 20 1 8

Balance July I, 201 7 Additions Deletions

LEGACY RANCH CFD

ASSETS Cush w1u l1 1v~s lrm:nts :b IL, /') I $ $ 515 Cash and Inves tments with Fiscal Agent 140,902 11 1 Taxes Receivable 32,210 27 32,2 10 Interest Receivable 92

Total Assets $ 245,995 $ 358 $ 32,725

LIABILITIES Deposits Payable $ 6,808 $ $ Due to Bondholders ----- -~39. ~ _1_8_2_ 358 32,725

Total Liabilities $ 245,995 $ 358 $ 32,725

192

Ba lance J un e 30, 201 8

$ '/'l,L"/6

141,233 27

92 $ 213,628

$ 6,808 206,820

$ 213,628

STATISTICAL SECTION

Statistical Section

This part of the C ity ofEI Centro's Comprehensive Annual Financial Report presents detailed information in a context for understanding what the information in the financial statements, note

di sclosures, and supplemental information says about the C ity's overall financi al health.

Contents

Financial Trends These schedul es contain trend information to help the reader understand how the

City's finan cial performance and well-being have changed over time.

Revenue Capacity These schedul es contain information to help the reader assess the factors

affecting the C ity's ability to generate its property and sales taxes.

Debt Capacity These schedul es present information to help the reader assess the affordability of the City's current leve ls of outstanding debt and the City's ability to issue

additional debt in the future.

Demographic and Economic In fo rm ation These schedu les offe r demographic and economic indicators to help the reader understand the environment within which the City's financial activities take

place and to help make comparison over time and with other governments.

Operating Inform ation

Sources:

These schedul es contai n information about the C ity's operations and resources

to help the reader understand how the City's financial information relates to

the se rvi ces the C ity provides and th e act ivites it performs.

Unless otherwise noted , the information in these schedules is derived from

the comprehens ive annua l financial report fo r the re levant year. The City

implemented GASB Statement No. 34 as of June 30, 2004; schedules

presenting gove rnm ent-wide information, include information beg inning in

that year.

193

CITY OF EL CENTRO NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS (Accrual Basis of Accounting)

F1scal Ye3r 2009 2010 2011 2012 2013 20 14 2015 2016 2017 2018

Governmental A:tivit ies Net Investment in Capit31 Assets $56 ,294,632 $70.520,225 $80.273 ,979 $75.589,062 $79,208,4 I 8 $30,842,072 $78.942, I 43 $78.81 •.o2c $75.890,3 I 4 $74.090,179 Restricted 63,571,786 4 I ,225,983 47,896 ,90 1 47,900, I 94 46,249,862 45 ,804,312 44,253,527 41 ,185,04/ 39,979,160 39,608,650 Un restricted 10,662,8 12 3 I .497,877 19,551 ,306 I 7,675,436 15,377.332 19,252,94/ (5,132,864) t2,041 .415 : 1.089,034 (787,605 )

Tot31 Go vernment< I Activi ties Net Pos1tion I 30,529.230 143,244.085 : 47.722, I 86 141.164.692 l'-0.835 ,61 2 145.899.33 I I 18.062,806 I I 7.963,658 I 16.958,508 112.911,224

Bu,iness-Type Activities Net investme nt in C2pital Assets 42,269,91 I 35,257,570 36,280,81 0 42,634.667 37,065, I I 8 39,558,204 44,193,034 26,493 ,22 I 5 I ,055,96 I 46, I 38.956 Restricted 7.752,240 7.699,379 7.861 ,774 6.582.559 6.674,927 6.730,642 6,85 I ,72 I 6.930,565 6.384, I 34 I 0,235 ,872 Unrestricted 35.624,898 49,575,758 54,273 ,032 61,899 .630 71 ,903,606 73 ,181,202 50,350,649 73 ,625.255 4 I ,274.763 45.832,239

Total Business-Type Ac:ivi ties Net Position 85,647,049 92,532,707 98,415,616 I I 1.116.856 115.644,65 I I 19.470.048 101.395,404 1C7.049,041 98,714,858 102.207.067

Pnmary Governnent Net Investment 1n Capital Assets 98,564,543 loJ5.777,795 I 16.554,789 118.223.729 I I 6,274,536 120.400,276 123.135,177 I J5.312,247 126.946,275 120.229, 135 Restricted 71,324 ,026 48,925,362 55,758,675 54,482 .753 52,924,789 52,53L,954 51 ,105,248 48,116,612 46,363,294 49,844,522 Unrestricted 46,287.710 81,073.635 73 ,824,338 79,575.066 87.280,938 92,43L, 149 45,217,785 71,583,840 42,363,797 45 ,044,634

I-' Total Primary Go ve rnment Net Position $216, I 76,279 $235,776,792 $246,137,802 $252,281,548 $256,480,263 $265,369,379 $2 i 9,458,2 10 $22:5,012 .699 $2:5,673 ,366 $215 ,118,291

w +>-

Source: City of El Cen rro Finance Department

CITY OF EL CENTRO CHANGES IN NET POSITION

LAST TEN FISCAL YEARS (Accrual Basis of Accounting)

Ptlge I of2

Fiscal Year 2008 2009 2010 2011 2012 2013 2014 2015 201 6 2017 2018

~:xpcnscs

Governmental Activities General Government $3, I 05 ,885 $3,078,888 $2,606,739 $3,319,00 I $3,784,511 $2,697,357 $2,754,215 $2,814,460 $3,189,318 $3,260,008 $4,907,578 Public Protection 15,709,050 15,437,278 15,886,783 15,694 ,697 14,771 ,179 13,500,334 13,702,504 14,821 ,027 15,991 ,970 16,549,335 19,407,063 Community Developmen t 3,745.060 2,641,0 I 0 7,597.064 5,463.849 6, 138, 138 7,740,525 5,368,816 5,914,348 4,904,923 5,045,345 5,961 ,507 Public Works 6,401, 722 5,294,860 5,650,308 5,911 ,481 5,296,310 5,845,493 5,552,867 4,107,228 4,166,861 4,374,882 5,858,267 Parks and Recreation 3,027,847 4,985,269 3,148,584 3,169,837 3,071,913 2,941,013 3,377,770 4,214,952 4,294,769 4,353,867 4,417,407 Interest on Long-Term Debt I ,970,229 2,508,942 3,558.649 . 4.180,951 3,256,048 1,653,023 I ,155,173 1,372,677 1,311 ,227 I ,035,446 995, !59

Total Governmental Acti vities Expenses 33,959,793 33,946,247 38,448 ,127 37,739,8 16 36,318,099 34,377,745 31 ,911,345 33,244,692 33,859,068 34,618,883 41 ,546.981

Business-Type Activities Water 7,123,415 8,008,232 8,334,638 8,373,968 8,264,815 8,270,456 7,889,026 7,703,001 7,835,221 8,085,191 8,663 ,249 Wastewater 7,220,805 7,499,465 7,359, I 09 7,505,317 7,845,792 7,485,992 7,784,150 7,963,730 7,416,154 7,744, 111 8,146,616 Hospital 81,947,795 91 ,148,549 101,101,558 112,030,838 123,010,972 123,087,439 123,534,326 123,935,509 130,184,797 143,495,890 159,294,906 Transit 227,407 223,058 205, I 03 181 ,972 211 ,598 356,984 391,240 428,536 441,838 0 273,540 Solid Waste 3,690,879 1,871 , 739 1,579,127 1,821,142 1,831,381 1,741,891 1,782,315 1,824,911 1,816,363 1,855,107 1,886,245

Total Business-Type Activities Expenses 100,210.301 I 08,751,043 118,579,535 129,913,237 141,164,558 140,942,762 141,381 ,057 141,855,687 147,694,373 161 , 180,299 178,264,556

Total Primary Government Net Expenses $134,170,094 $142,697,290 $157,027,662 $167,653 ,053 $177,48? ,657 $175,320,507 $173,292,402 $175,100,379 $181,553,441 $195,799,182 $219,811.537

....., lO Program Revenues (Jl

Governmental Activities Charges for Services

General Government $323,057 $42,040 $20,865 $14,710 $538,072 $501,117 $546,723 $671 ,937 $550,744 $539,224 $630,324 Pub! ic Protection 1,337.987 971,735 I ,542.554 623 ,511 489,902 436,624 394,565 388,716 395,876 409,253 429,794 Community Development I ,432.847 542,958 383 ,973 707,417 582,900 443,626 548,054 549,694 533.237 511,977 776,338 Public Works 87,305 25,222 25,140 46,475 40,420 14,665 24,738 18,582 18,855 15,205 Parks and Recreation 103,138 123,396 141,894 130,407 108,676 106,267 133,327 148,347 397,040 186,582 169,678

Operating Contributions and Grants 7,614.490 6,837.298 3,294.055 4,581,713 4,729,860 6,330,950 5,053,349 3,770,930 4,307,685 3,075,687 5,039,069 Capital Contribut ions and Grants 9,952.11 6 1.570.007 16,769,881 8,238,107 8,945,384 14,465,302 10,655,687 6,632,032 6,290.390 5,962,819 4,953 ,068

Total Governmental Activities Program Revenues 20,850,940 10,112,656 22,153 ,222 14,321 ,005 15,441,269 22,324,306 17,346,370 12,186,394 12,493,554 I 0,704,397 12,013,476

Business-Ty pe Activities Charges for Services

Water 7,045,506 8,060,343 8,009,824 8,096,551 8,345,593 8,432,311 8,597,177 8,382,237 8,040,037 8,725,663 8,969,212 Wastewater 7,003,379 7,369,120 7,400,961 7,419,760 7,622,341 7,879,037 8,487,848 8,830,413 9,093,132 9,775,034 9,764,887 Hospital 84,339,214 94,771 ,491 I 06,897,444 115,799,592 133,547,434 126,098,919 128,111,189 133,830,56 1 133,442,763 131,014,558 156,80 I ,391 Transit 31 ,911 31 ,901 32,145 , 28,953 252,665 428,249 431,237 420,029 406,248 Solid Waste 3,737,471 I ,664,720 I ,623,364 I ,706,670 I ,782,171 1,769,658 1,811,429 I ,854,003 I ,852. 773 I ,862,447 I ,862,502

Operating Contributions and Grants 623,509 634,668 636,347 I ,076,707 876,773 428,979 472,116 405 ,654 358.660 283 ,995 476,362 Capital Contribut ions and Grants I ,882. I 04 2,256.806 358,962 328,911 I ,118,733 327,314 397,620 I ,120,428 385.790 2,339,194

Total Business-Type Activities Program Revenues I 04,663.094 114,789,049 124,959,047 134,457,144 153,545,710 145,364,467 148,308,616 154,843,325 153 ,579.403 151 ,661,697 180,213,548

Total Primary Go vernment Program Revenues $125,514,034 $124,901,705 $147, 112,269 $148,778,149 $168,986,979 $167,688,773 $165,654,986 $167,029,719 $166,072.957 $162,366.094 $192.227,024

CITY OF EL CENTRO CHANGES IN NET POSITION

LAST TEN FISCAL YEARS (Accrual Basis o:· Accounting)

Pnge 2 of 2

Fiscal Year 2009 2010 20 I I 2012 2013 20 14 2015 2JI~ 2017 2018

Net (Expense)• Revenue Govern11enta: Activit ies ($ 23,833,59 I) ($I 6,294,905) ($23,4 I 8,8 I I) ($20,876,83(•) ($ I 2,053,439) ($ 14,564,975) ($2 I ,058 ,298) ($2 I ,36~,5 I 4) ($23,9 14,486) ($29,533 ,505) Business-Type Activities 6,038,006 6,379,5 2 4,543,907 12, ::8 1, 15~ 4,42 I ,705 6,927,559 I 2,987,638 5,88~.030 (>,5 I 8,602) I ,948,992

Total Primary Government Net Expense ($I 7,795,585) ($9,9 I 5,393 ) ($I 8,874,904) ($8 ,495 ,6 7~) ($ 7,631 ,734) ($7,637,4 I 6) ($8,070,660) ($ I 5,48C,484) ($33,433.088) ($27,584,51 3 )

General Rcvcrues and Other Changes in Net Assets Govern:-nental Ac~ivities

Taxes P ·operty Taxes $I 0,350,487 $9,834,9 I 7 $9,023,918 $5,E72,65C $2,946,796 $2,928 ,564 $3,036,539 $3, I 84,676 $3,274,L87 $3,634,53 I SJ les Ta,:es 9,843,655 8,485,869 10,094,376 I I, 182,621 10,457,635 10,937,977 10,998,664 I 1,461,7 14 I 2,863,590 I 7,732, I 23 Transit Cccupancy Taxes I, I 98,977 I ,235,027 I ,343,477 1,560,794 I ,660,3 36 I ,667,107 I ,592,290 1,692,052 I ,667,L55 1,861,737 Franchise Taxes 393,958 337,914 356,688 337,263 309,852 3 17,c96 317,379 295,717 282,975 298,492

Other Ta:<es 332,272 336,024 394,573 4:5,851 384,697 369,426 402,49 I 4215,247 421,:'37 I 98,535 Licecse & Permits Fines & Foreitures Motor Vehic le in Lieu, unrestriced 3,998,996 4,010,814 3,939,780 3,790,87> 3,66 I, I 73 3,640,>02 3,671,321 3,>2G,891 4,095,796 4,252,437 Reve-nue F rc·m Other Agencies 98 I ,896 1,222,2L6 1,176,33 I Litigation Settlement

I-' Bond/Loan Proceeds less increase in debt lD m Miscell aneoJs Reven ue 280,353 758,889 657,329 94,848 77,097 72,185 102,414 I 23.,883 I 0 I ,3 I 5 95 ,107

Gain on Sales of Property Tran:;fers 1,778,540 203,680 24 I ,920 24 I ,920 193,200 193,200 (2 14,368) Loss on Transfer of Assets and L iab ilities to

RD A Successor Trust Fund (8,983 ,573) Investment Earnings I ,603,352 595,245 528. I 88 101,500 169,63 I 130,261 I 55,862 184, 000 202, 181 I 10,914

Total G·wernm-=ntal Activities 30,762,486 26,816,945 27,718,340 14,4 I 4,753 I 9,909,137 20,2 57,3 I 8 20,<;70 , 160 2 I ,289,180 22,909,336 27,969,508

Business-Ty pe Activ ities Investment Earnings 1,971,334 506, 146 402,506 4 11,992 453 ,085 470,35 I 613,433 937,970 560,592 I ,328,849 Litigation 5ettlernent 550,000

Tran3fers (I ,778 ,540) (203,680) (2L I ,920) (241 ,920) (I 93,200) (I 93,200) $214,368 Miscellanecus Revenue (Expecse) 84,765 150,016 (105,075 ) 57,936 (608,438) 96,683 0

Total Bus iness-Type Activities I 92,794 506, I 46 833,59 1 320,088 106,090 335,087 ( I 88,205) 937,970 657,275 I ,543,2 I 7

Total Prin1ary Government $30,955,280 $27,323,0<; I $28,55 I ,93 I $14,7:A,841 $20,015,227 $20,592,405 $20,281,955 $22,227, I 50 $23,566,c I I $29,5 I 2,725

Change in Net Position Go-vernmental Activities $6,928,895 $I 0,522,040 $4,299,529 ($6,462,077) $7,855,698 $5,692,343 ($588 , 138) ($76,334) ($I ,005, 150) ($I ,563,997) Busines'-Type Activities 6.230,800 6,885,658 5,377,498 I 2,70 I .240 4,527,795 7,262,646 I 2,799,433 6,823,000 (8,861,327) 3,492,209 Total Pri ma ry Government $13,159,695 $17,407,6<;8 $9,677,027 $6,2::-9. I 63 $I 2,383,493 $12,954,989 $12,211,295 $6,746,666 ($9,866,477) $I ,928,212

Source City of E: Centro Finance Department

CITY OF EL CENTRO FUND BALANCES OF GOVERNMENTAL FUNDS

cAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting)

Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

General Fund Reserved $1,305 , 150 $955,150 Unreservc:d 5,259,635 4,621,322

Total General Fund $6,564,785 $5,576,472

All Other Governmental Funds Reserved Reported In :

Special Revenue Funds $26,814,384 $23 ,948 ,681 Debt Service Funds 2,657,808 4, 117,612 Capital Projects Funds 23,353 ,322 31 ,894,909

Unreserved, Reported In : Special Revenue Funds 6,951 ' 167 7,006,27 1 Debt Service Funds I 0,828 ,295 9,648,639 Capital Projects Funds 38,217

Total All Other Governmental Fund' $70,643, 193 $76,6 16,112

General Fund Nonspendable $1 ,300,000

I-' Restricted 1,500,000 \.0 -.....J Ass igned 8,259,370 9,077,959 4,086,986 4,094,734 4,094,734 4,632, !59 4,675 ,830 5,019,337

Unass igned 5, 106,157 8,851 ,696 10,668,543 12,948,4 10 13,503 ,236 12,936,302 13,565 ,446 16,008,312

Total General Fund $0 $0 $14 ,665 ,527 $17 ,929,655 $14,755 ,529 $17,043 ,144 $17,597,970 $17,568,461 $18,241 ,276 $22,527,649

All Other Governmental Funds Nonspendable Reported In:

Special Revenue Funds $17,645 ,310 $17 ,434,561 $17,293,980 $6,736,080 Restricted Reported In :

Special Revenue Funds $20,662,73 7 $21,387 ,592 $16,328, 148 $14,522 ,868 $14,497,725 $12,082 ,322 $11,933,425 $2 1,019,395 Debt Service Funds 25,350 ,288 11,310,804 10,610 ,316 II ,596,495 I 0,886,701 10,162,103 9,413 ,193 8,655 ,245 Capital Projects Funds 59,125 ,015 43,604,215 44,704, 189 19,494,251 19,823,512 20,102 ,143 20,077,372 20,191 ,458

Committed Reported In : Special Revenue Funds 490,610 492,778 500,044 504,786 510 ,687 518,023 527,498 542, 116 Capital Projects Funds 1,272,206 I ,290,225 1,337,063 I ,359,231 1,391 ,199 1,651 ,859 I, 147,829 89 1,326

Unassigned , Reported In : Special Revenue Funds (947,740) (1, 171 ,673) (146 ,068) (515,850) (229,575) (270, 160) 40,959 (21 ,789)

Total A ll Other Governmental Fund~ so so $105 ,953 ,116 $76,913 ,941 $73,333 ,692 $46,961 ,781 $64,525,559 $6 I ,680,851 $60,434,256 $58,0 !3,831

Total Governmental Funds $77,207,978 $82,192,584 $120,618,643 $94,843,596 $88,089,221 $64,004,925 $82,123 ,529 $79,249,312 $78,675,532 $80,541,480

Source: City of EJ Centro Finance Department

Note: With the implementation ofGASB 54 in fiscal year 2011, the classifi cation of fund balance has been revised.

I-' t..D OJ

Revenues Taxes :.... 1censes and Perm1 B ::-rem Other Agenc1e~ (In tergovernmental) :harges for Services =ines and Forfeitures nterest

•)ther

Tota l Revenues

Expenditures Current

General Governme:1t Pub I ic Safety ?ublic Works ?Jrks and Recreation Commun1ty Develcpmenl

Capital Outlay Debt Serv1ce

Prmcipal Retirement Interest and Fiscal Charges Other

Tot~11 Expenditures

E>:cess of Revenues Ove- (Under) Expenditures

Oth:r Fmancing Sources (Uses) ?roceeds from cap ital ieases -ransfers In Transfers Out S~1 les of Property l5suance of Ltlng Term Debt

Cngino.l Issue DiscoLull Payment of Refunded Bond Escrow Agent Lea5e Proceeds/Short -:--erm Debt

Tn~ l Other Fino.ncing s~urces (Uses)

Ext·:aordlllcuy Item Gam/( l oss) on Tr~msfc1 :>f Assets and LJ;;~bll i t les

1·1 R OA Successor Trust Funds

Net Ch:mge In Fund Bal:>nces

Dd: Scrv1ce as a percentage of non-capital expenditures

Source C1ty of El Centro FinJncc Department

CITY OF EL CENTRO CHA NGES IN FUND BALANCES OF GOVER NMENTAL FUNDS

LAST TEN FISCAL YEARS (Modified Accru a l Basis of Accounting)

F1scal Ye3! 2009 20 10 2011 2012 2013 2014

$ 19,339,300 $18,130,565 $18,946,072 $15,890,6 17 $13,315,27 1 $13,; 20,695 168,708 187,286 371 ,608 302,210 207,705 ~ 23,838

15,415 ,C33 I ~.535,60 I 19,077,784 1·5,232, 143 21,422,955 19.~38,87~

1,207,<;41 734, I 07 I ,23 9,003 944,1 53 582,87 : 838,549 220,262 231,871 227 , 1 ~2 278,£-52 19 1,553 171,456

1,499,315 419,452 383,8~6 I ,020,249 I ,039,533 065 ,289 1,399,334 ~.802.438 1.671 .7o8 3 ,902.~4 1 5.023.159 2.68 1,077

39, 249,893 39 041,320 4 1,917 153 33 570,:65 4 1,783,047 37.339 77E

2,893,665 :,479,476 2,869,6(o2 3,464,S73 8,411,060 3,21 9,091 15,700,953 15,683,668 14,344,7E7 13,633,473 13,758,270 14,066,064 2,426,909 2,381 ,628 2,559, 744 . ,645,(24 I ,603,595 1,6 13,63( 4,621,233 2,702,213 2,548,5 18 2,472,520 2,353,933 2,733,034 5,144,726 8,023,357 5,091 ,5C5 5,081,752 7, 171,937 2,006,113 2,7 14,757 12,850,526 18,946,489 10,275,049 13 ,098,714 I 0,258,712

329,520 I ,155,000 740,0CO ~.1 55,000 I ,01:.9,063 1,110,066 2,459,6·] 3 3,247,874 3,430,028 3,94 1,012 I ,5;4,703 1,259,809

383,961 397,937

36.291,376 48,907,703 50,928,6 10 42,668,403 49,06 1,275 36l266.525

2,958, 517 (9,866,383) (9,011 ,457) (~.098,138) (7.218,228) 1,073.253

281 ,933 0 I 0,145,354 5,493,537 4,740,384 ~.581,124 3,348, 795 3,425,532 (8,366,814) (5 ,493,537) (4,536, 704) (~,339,2J4) (3, I 06,875) (3,232,332)

266,806 14,740,000 47,300,000

0: 255,817) ( 171 ,33 1)

1,778,540 14 750,989 47, 332.3 4:) 241,920 523,853 193,200

(21,823,4 12)

$4.737.057 $4.884.606 $3 8.3 20.892 ($25.679,630) ($6,754.375) s 1,266,453

8.2% 13.3% 14.3% 18.:3% 7.2% 8.9'1.

20 15 2.) 16 20 17 2018

$13,583,961 $16,693,227 S18,51D,044 $23,965,511 256, 117 327,027 270,740 423,868

15,548,12 1 13,111 ,4 11 II ,924,208 II .' 13,164 1,104,236 942,182 870,198 1,311 ,769

260,484 157,908 10' ,866 87,950 859,566 862,411 6Q&,730 727,513

1,571,723 1,320,273 1,46C.,430 1,262.526

33,184,208 33,414,439 33 , 84~.216 39 6<!2 301

3,551 ,(•14 3,239,773 3,28(•,437 4,(()7,539 14,008,336 15,493,236 J6,27L,3J2 16,260,309

I ,295,399 1,46J,Q52 I ,41 o,699 I ,475,797 2,698,586 3, I .:12,898 3,20~,Q32 3,216,194 2,166,885 2,164, 177 2, 18E,684 2,256,357 6,515, 733 8, 180,399 5,70<::,583 8, 1]1,379

1,132,892 I , 165,879 I ,20S,033 1, 1015,000 I ,478,077 1,417,528 1,142.,316 I ,0019,410

32,846,922 36,265,842 34,42£,996 37.611,985

337,286 (2.851,403'• (573,780) 2.0 30.316

0 0 0 0 :;,041,423 2,858,474 2,387,332 3. 728,876

(2,848,223 ) (2,858,474 ) (2,387,332) (3,943,244)

193,2JO 0 0 (2 14.368)

$530,436 ($2,&S 1,403) ($573 780) $ 1,865,948

9.6% 9.1% 3.1% 7.6%

CITY OF EL CENTRO

PROPERTY AD VALOREM TAX ASSESSED VA LUES 1

LAST TEN FISCAL YEARS

Ci Redeve lo~m en t Agenc~

Yea r County Purtio11 of Port ion o f Ended Assessed Tax Rate Assessed Assessed

June 30 Value 2 Per $ 100 Value Tax Rate Tax Lev~ Valut:

2009 2, 147,395,583 1.0000 I ,499,039, 128 0. 2 12% 3, 184,742 648,356,455 20 10 2, 15 1,397,593 1.0000 I ,481 ,883 ,898 0.207% 3,07 1,242 669,5 13,695 20 11 2, I 03,422,232 1.0000 I ,47 1,969,889 0.208% 3,056,868 63 1,45 2,343 20 12 2,036, 73 I ,983 1.0000 I ,43 1,557,030 0.2 10% 2,999,3 16 605 , 174,953 20 13 2,0 13,469, 11 6 1.0000 I ,398,499,07 1 0.2 10% 2,940,20 1 6 14,970,045 20 14 2,003,429,040 1.0000 I ,404,870,048 0.2 11 % 2,959, 12 1 598,558,992 20 15 2,022,063,289 1.0000 I ,423,277,054 0.2 12% 3,0 11 ,823 598,786,23 5 20 16 2, 173,973 ,430 1.0000 I ,559,437,960 0.2 10% 3,277,875 6 14,535,470 2017 2,280,920,8 14 1.0000 1,629,348,747 0.209% 3,397, 728 65 1 ,572,067 20 18 2,377,628,28 1 1.0000 I , 706,086,033 0.220% 3,752,344 67 1,542,248

Est imated Actual Value ofTaxable Property is not ava ilab le s ince passage of Proposition 13 in 1978. Property assessed values may rise only to a max imum of 2% per year unless there is new construction or when the property is sold. Consequent ly, estim ated values are not ava il ab le.

Pursuant to chapter 1207 of the statutes of 1978, "Assessed Value" means 100% of full taxable va lue.

Source: Imperial Coun ty Auditor's/Contro ller's Office

199

Tax Rate Tax Lev~

0.988% 6,403,53 1 1.057% 7,074,488 1.013% 6,397, 159 1.016% 6, 145,82 1 1.0 18% 6,262,469 1.0 17% 6,088,570 1.02 1% 6, 111 ,606 1.02 1% 6,273,308 1. 020% 6,642,930 1. 022% 6,862,876

CITY OF EL CENTRO DIRECT AND OVERLAPPING PROPERTY TAX RATES

(Rate per $1 00 of Assessed Value) LAST TEN FISCAL YEARS

Fisca l Year 2009 20 10 20 II 20 12 20 13 20 14 20 15 20 16 20 17 2018

C ity Direct Rates:

City bas ic rate $0.2 12 $0.207 $0 .208 $0.2 10 $0.2 10 $0.2 11 $0.2 12 $0.2 10 $0.209 $0.220 Redeve lopment Agency 0.988 1.057 1.013 1.016 1.018 1.0 17 1.02 1 1.02 1 1.020 1.022

Tota l City D irec t Rate 1.200 1.264 1.22 1 1.226 1.22R 1.22R 1.233 1.23 1 1.229 1.242

Overlapping Rates:

Im perial County 0.260 0.260 0.260 0.260 0.260 0.260 0.260 0.260 0.274 0.274 El Centro E lementary Distr ict 0.214 0.2 14 0.214 0.214 0.:2. 14 0. :2. 14 U.214 0.214 0.200 0. 200 Ce ntral Union High Schoo l 0.177 0. 177 0. 177 0.177 0.177 0. 177 0. 177 0. 177 0. 142 0.142 Imperia l Va ll ey Co llege District 0.087 0.087 0.087 0.087 0.087 0.087 u.o:n U. U ~7 0.068 0.068 Imperia l Coun ty School Se rvice 0.0 19 0.0 19 0.0 19 0.0 19 0.0 19 0.019 0.019 0.0 19 0.0 16 0.016 Central Cemetery District 0.0 17 0.0 17 0.0 17 0.0 17 0.0 17 0.0 17 0.017 0.017 0.019 0.019

Tota l Direct Rate 1.974 2.038 1.995 2.000 2.002 2. 002 2.007 2.005 1.949 1.962

NOTE: In 1978, Californ ia voters passed Proposition 13, wh ich sets the property tax ra te at a 1.000% fixed amou nt. TillS I .UUU% is shared by all tax ing agt:ncies fu 1 which the subjec t property resides within. In add ition to the fixed amount, property owners are cha rged taxes as a pe rcentage of assessed property va lues for the payment ot bonded debt service on the vo ter-approved School District and Commun ity College bonds.

Source: Imperia l County Audito r/Controller's Offi ce

200

CITY OF EL CENTRO PRINCIPAL PROPERTY TAXPAYERS

AS OF JUNE 30,201 8 AND 2009

Fiscal Year 20 18 F iscal Year 2009 Percent Of Percent Of

Tota l Tota l Assessed Assessed Assessed Assessed

Taxpayer Valuat ion Valuation Rank Valuat ion Valuation Rank

I V Plaza LLC (RJFP LLC) $ 5 1,862,899 2. 18% $ 40,075,260 1.34% 2

Imper ial Va lley Ma ll II , LF 47,302,738 1.99% 2 40,66 1,730 1.36%

EGP CH EL Centro LLC 24,805,879 1.04% 3 16,57 1,972 0.55% 5

RJ Development Co. LLC 21,496,587 0.90% 4 18,964,406 0.64% 3

Wai-M art Stores Inc. 19,023, 196 0.80% 5 14,573 ,096 0.49% 6

Target Corporation 14,442,507 0.6 1% 6 13,209,869 0.44% 8

Auto P laza Apartments LLC 12,500,000 0.53% 7 16,660,000 0.56% 4

Lakes ide Investment LLC 11,728,500 0.49% 8

Dillard Stores Serv ices Inc 11 ,269,590 0.47% 9 14,849,350 0.50% 6

Costco Who lesale Corp 10,24 1,789 0.43% 10 10,54 1, ISO 0.35% 10

Lowe's HIW Inc 14,557,288 0.49% 8

$224,673 ,685 9.45% $200,664, 121 6.72%

Source: Imperial County Assessor's Office

20 1

CITY OF EL CENTRO J>ROPERTY TAX LEVIES AND COLLECTIONS


Cullc:deu wilhin the Year Taxes Levied F isca l Year ofLcv;r Delinquent Tota l Co llections to Date

Ended for the Total Percent Tax Percent June 30 fiscal Year Amount of Levy Co ll ection Amuunl ofLev;r

2009 9,588,273 10,262,937 107.04% I 0,262,937 107.04%

2010 10,145,73 0 9,744,862 96.05% 9,744,862 96.05 %

2011 9,454,027 8,929,9 15 94.46% 8,929,9 15 94.46%

201 2 9, 145 , 137 7,745 ,877 84 .70% 7,745,877 84.70%

201 3 9,202,670 8,580,115 93 .24% 8,580, 11 5 93.24%

201 4 9,047,69 1 8,93 1,326 98.71% 8,931 ,32() 98 .71%

2015 9, 1 23 , 4:2.~ 9,120,596 99 .97% 9,120,596 99.97%

2016 9,55 1, 183 9,506,127 99.53% 9,5 06,127 99.53%

201 7 I 0,040,658 9,757, 168 97 .1 8% 9,757, 168 97 .18%

201 8 I 0,6 15,220 I 0,349,123 97.49% I 0,349, 123 97.49%

Note: The amounts presented include City property taxes and the former Redevelopment Agency tax increment.

Source: lmperi al Coun ty Auclitor's/Controll er Office

202

CITY OF EL CENT ilO RATIOS OF OUTSTANDING DEBT BY TYPE


Governm en tal Acti viti es Business-Tvpe Acti vit ies Tax Lease General Water &

A ll oca ti on Revenue Reven ue Bonded Ta:x Total Wastewater Hos ital Tota l Fiscnl Bond Bonds Bonds Debt Capital All oci'l ti on Cinvern 1n entnl Revenue Capi to l Revenue Notes Husrness-Type Year Outstandinu. Leases Loan Pa:rab le Acti viti es Bonds Leases Bonds Pavable Acti vities

2009 3,09 1,500 30,9 15,000 1,300,000 32,2 15,000 77, I 09,643 4,566,340 32,452,989 11 4, 1 ~ij,971

20 10 30,555,000 13,695,624 44,250,624 950,000 45,200,624 75,478, 128 5,272,848 31,223,502 11 1,974,478 20 11 66,340,000 13,387,5 15 I 0,925,575 90,653,090 I ,300,000 91,953 ,090 73 ,778,9 19 7,887,666 29,934,0 15 I ,003,300 11 2,603,900 20 12 13,069,406 I 0,25 7,393 23,326,799 23,326,799 72,436,782 8,525,28 1 28,585,528 752,300 11 0,299,89 1 20 13 12,746,297 9,579,2 11 22,325,508 217,870 22,543,378 70,906,48 1 5,244,43 1 27,147,04 1 5,00 1,300 I 08,299,253 20 14 12,413, 188 8,876,029 2 1,289,2 17 167,804 2 1,457,02 1 69,078,663 2,92 1,8 10 25,665,552 4,205,395 101,87 1,420 20 15 12,070,079 8, 162,847 20,232,926 114,9 12 20,347,838 66,592,684 4,9 13,329 50,000,000 12 1,506,0 13 20 16 11,7\3,970 7,434,665 19, 148,635 59,033 19,207,668 64, 171, 189 6,962,960 47,205,000 118,339, 149 20 17 11,338,86 1 6,68 1,483 18,020,344 18,020,344 59,70 1,878 4,738,042 44,240,000 108,679,920 20 18 10,930,752 5,9 18,30 1 16,8•19,053 16,849,053 57,49 1,674 5,966,052 115,049,993 178,507,7 19

Total P ercent<~ge

Fiscal Prim ary Of Personal Per

~ Governm ent Income I Capita I

2009 146,343,972 II 5% 3,303 20 10 157, 175, I 02 13.5% 3,700 20 11 204,556,990 17.4% 4,756 2012 133,626,690 11 2% 3,049 20\3 130,8•12,63 I 10.4% 2,96 1 20 14 123,328,44 1 9.8% 2,780 20 15 14 1,853,85 1 9.8% 3, 156 20 16 137,546,8 17 9.4% 3,036 20 17 126,700,264 8.3% 2,790 2018 195,356,772 12.6% 4,2 18

Note: Detail s regardi ng th e City's outstil.llding debt cru1 be found in the Notes to th e Financial Statemen ts.

1 Sec th e table of Popu lation and Unempl oyme nt Rate late r in thi s secti on fo r personal income and population data

Source: Ci ty of El Centro Finance Department

203

CITY OF EL CENTRO RATIOS OF GENERAL BONDED DEBT OUTSTANDING


Less: Amounts Total Redevelopment Ava il ab le Genera l

Agency Tax Lease F inancing in Deht Ronded Allocation Revenue Authority Service Debt

Fiscal Year Bonds Bonds Revenue Bonds Funds Outstanding

2009 30,915 ,000 13,486, 103 17,42 ll ,ll')7 2010 30,555,000 13,695,624 13,7GG,25 1 30,484,373 2011 66,340,000 13,387,5 15 10,925,575 13,246,908 77,406,182

201 2 13,069,406 I 0,257,393 2,56R,042 20,758 ,159

201 3 12,746,297 9,579,2 11 2,564,268 19,761 ,242

201 4 12,4 13, 188 8,876,029 2,57 1,8 14 18,717,405

201 5 12,070,079 8, 162,847 2,57 1,8 18 17,66 1,1 10

2016 11 ,7 11,970 7,434,665 2,571,828 1 G,574, 809

201 7 11 ,33 8,861 6,68 1 ,4Rl 2,57 1,875 15,448,471

2018 I 0,930,752 5,9 18,301 2,572, 198 14,276,857

Est imated Actual Value of Taxable P1 uf.Jt:Jly is nul avai lable since passage of Proposition 13 in 1978. Property assessed values may rise only to a max imum of 2% per year unless there is new construction or when the property is so ld. Consequen tly, es tim ated values are not availab le.

2 Re lated debt for the Redevelopment Agency has been transferred to the Successor Agency.

Source: City of El Centro Fi nance Department

204

Percentage of Assessed

Value of Per

Property 1

Cap ita

O.ll% 393 1.4% 7 18 3.7% 1,800

1.0% 474

1.0% 447

0.9% 422

0.9% 393

0.8% 366

0.7% 340

0.6% 108

N 0 Vl

CITY OF EL CENTRO STATEMENT OF DIRECT AND OVERLAPPING DEBT

As of June 30, 2018

2017 - 2018 Assessed Valuation: Redevelopment Incremental Valuation:

City Adjusted Assessed Valuation

OVERLAPPING TAX AND ASSESSMENT DEBT El Centro Elementary School District 2003, 2015 & 2016 Bonds Centro Union High School 2011 & 2016 Bonds Imperial Valley College 2004,2010,2012, 2017 & 2018 Bonds

TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT

TOTAL OVERLAPPING DEBT

CITY DIRECT DEBT 1

TOTAL DIRECT AND OVERLAPPING DEBT 1

Excludes enterprise revenue, mortgage revenue and

tax allocation bonds and non-bonded capital lease obligations.

2 The percentage of the applicable debt is determined by the assessed valuat ion for the appmpriate district as a percentage ot the City's assessed valuation.

Source: Imperial County Auditor/Controller's Office

$2,377,628,281 671,542,248

$1 '706,086,033

OUTSTANDING DEBT

6/30/2018

$13,131,651 16,190,000

I 06,763,983

136,085,634

$136,085,634

ESTIMATED SHARE OF

OUTSTANDING %APPLICABLE DEBT

88.07% 46.33% 14.15%

$11 ,565 ,045 7,500,827

15 ,107,104

34,172,976

$34,1 72,976

: 8,020,344

$52,193,320

CITY OF EL CENTRO COMPUTATION OF LEGAL DEBT MARGIN


Total Assessee! Vr~hHltion $2,280,920,814

Debt Limit- 15% of Total Assessed Valuation 1

Amount of Debt Applicable to the Limit

Legal Debt Margin

LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS

Total Legal

Debt Debt Debt

Fiscal Year Limit Applicable Margin

2009 322,109,337 30,915,000 291 > 194,337

2010 322,709,639 44,250,624 278,459,015

2011 315,513,335 90,653,090 224,860,245

2012 305,509,797 23,326,799 282, 182,998

2013 30?.,0?.0,1117 22,325,50ll TIY ,6Y4,ll5l)

2014 300,514,356 21,289,217 279,225,139

2015 303,309,493 20,232,926 283,076,567

2016 326,096,015 19,148,635 306,947,380

2017 342,138,122 18,020,344 324,117,778

2018 356,644,242 16,849,053 339,795,189

1 Government Code 43605 of the State of California provides for a !ega!

debt limit of 15% of gross assessed valuation

Source: City of El Centro Finance Department

206

$342, 138, 122

18,020,344

$324,117,778

Total Debt Applicable

As A Percentage

Of Debt Limit

9.6% 13.7% 28.7% 7.6%

"/.4%

7.1% 6.7%

5.9% 5.3% 4.7%

N 0 -...j

Revenue Bonds (Water Fund)

Year Less : Net Ended Water Operating Available

June 30 Revenue I Ex~enses 2 Revenue Princieal4

Interest

2009 8,746,874 5,259,361 3,487,513 648,263 I ,603,802 2010 8,239,919 4,912,938 3,326,981 660,3 11 I ,577,325 20 II 8,279,438 4,857,400 3,422,038 687,420 I ,550,621 201 2 8,540,202 4,818,652 3,72 1,550 714,592 I ,523 ,095 2013 8,661,0 II 4,875,237 3,785 ,774 741 ,831 1,494,499 2014 8,816,84 7 4,546,502 4,270,345 774, 136 I ,430,642 2015 8,570,456 4,603,505 3,966,951 801 ,510 I ,082, 132 2016 8,132,998 4,417,861 3,715 , 137 998,955 I ,273 ,605 2017 8,887,085 4,583,355 4,303 ,730 I ,021,474 I ,252,478 2018 9,270,396 5,054,758 4,215,638 I ,049,068 I ,232,770

Revenue Bonds (Hose ital Fund)

Year Less: Net Ended Hospital Operating Availab le

June 30 Revenue Ex~ense s 2 Revenue Princieal 5 Interest

2009 94,771,491 84, I 0 I ,568 10,669,923 I ,200,000 I ,796,969 2010 I 06,897,444 94,597,611 12,299,833 I ,250,000 1,726,610 2011 115,799,592 I 04,595, 194 II ,204,398 I ,310,000 I ,670,360

2012 133,54 7,434 120,995,707 12,551 ,727 I ,369,000 1,610, 100

2013 126,098,919 115,869,725 10,229,194 I ,459,000 1,537,460

2014 128, Ill, 189 116,528,884 II ,582,305 I ,519,000 1,461,051

2015 133 ,830,561 116,804,256 17,026,305 I ,599,000 1,733 ,430

2016 133,442,763 123 ,6 16,427 9,826,336 2,795,000 I ,439,753

2017 13 I ,549,548 136,026,440 (4,476,892) 2,965,000 I ,439,753

2018 157,999,045 147,714,807 I 0,284,238 44,240,000 I ,970,575

Interest Revenue and Gmnt Revenue is included for this calculmion

Depr~ci<1tion is eliminated for this calculation.

' Redevelopment Agency Tax Allocntion Bonds '.vere transferred to the Successor A gency

CITY OF EL CENTRO PLEDGED-REVENUE COVERAGE


Debt Total Service Wastewater

Debt Service Coverage Revenue I

2,252,065 1.55 8,233,782 2,237,636 1.49 7,656,046 2,238,041 1.53 7,591 ,025 2,237,687 1.66 7,802,980 2,236,330 1.69 8,091 ,373 2,204,778 1.94 8,689,831 I ,883,642 2. 11 8,995, 182 2,272,560 1.63 9,169,033 2,273 ,952 1.89 9,919,427 2,281,838 1.85 10,070,280

Revenue Bonds (Wastewater Fund)

Less: Net Operating Available

Exeenses 2 Revenue Princi~al 4

Interest

4,439,283 3,794,499 840,780 2,045,574 4,022,221 3,633,825 971,204 2,007,813 4, 162,870 3,428,155 1,011 ,790 I ,967,31 6 4,339,514 3,463 ,466 I ,057,544 1,904,434 4,207,032 3,884,341 788,470 I ,736,765 4,533,236 4,156,595 I ,264,574 I ,665,899 5,268,375 3,726,807 I ,300,861 1,117,888 4,689,235 4,479,798 1, 197,337 1,142,938 5,012,752 4,906,675 I ,224,007 1,114,557 5,310,983 4,759,297 I ,260,878 I ,065,324

3 Redevelopment Agency Tax Allocation Bond --Debt Property

Total Service Tax Total Debt Service

Debt Service Coverage Increment Princieal Interest Debt Service Coverage

2,996,969 3.56 5,597,472 280,000 I ,397,580 1,677,580 3.34 2,976,610 4.13 5,410,352 360,000 I ,384,340 1,744,340 3.10 2,980,360 3.76 4,854,230 420,000 1,431,159 1,851,159 2 62

2,979,100 4.21

2,996,460 341

2,980,051 3.89

3,332,430 5. 11

4,234,753 2.32

4,404,753 (1.02)

46,210,575 0.22

4 One pri ncipal paymenr reletted to the 2006 Water & Wastewater Bonds was sho\.vn, si nce the remaining balances were refunded and no payments were due on the new 201 4 Water & Wastewater Debt in Fy 2015

5 One pri ncipal poymcnt related to the 200 1 Hospital Bonds was shown, since the remaining balance was refunded and no payments were due on the new 2015 Debt in Fy 2015

Source: City of El Centro Finance Department

Debt Total Service

Debt Service Coverage

2,8 86,3 54 1.31 2,979,017 1.22 2,979, I 06 I 15 2,961,978 I 17 2,525,235 1.54 2,930,473 1.42 2,4 18,749 1.54 2,340,275 1.91 2,338,564 2.10 2,326,202 2.05

Fisca l Year

2009 2010 2011 201 2 201 3 20 14 2015 201 6 201 7 2018

CITY OF EL CENTRO DEMOGRAPHIC AND ECONOMIC STATISTICS


Personal Income 2 Unemployment

Population I Total Per Capita Rate L

44,303 1,270,654,343 28,68 1 29.4% 42,480 1,161 ,488,160 27,342 32. 1% 43 ,01 3 1,176,061 ,446 27,342 29.7% 43 ,827 1,198,3 17,834 27,342 29.4% 44,192 1,252,887,392 28,351 24 .7% 44,36o 1,257,820,466 28,35 1 24.6% 44,946 I ,448,3 84,850 32,225 22.9% 45,3 05 I ,459,953,625 32,225 23.8% 45 ,413 1,525, 150,192 33 ,584 22.9% 46,315 1,555,442,960 :n ,5R4 18 . 1%

Source: Ca liforn ia Department of Finance

Source: Ca lifornia Empl oycment Development Department

Source: E l Centro Elementary Schoo l District

208

Elementary

School

Enrollment 3

5,517 5,352 5,200 5,022 4,973 4, 995 5,091 4,959 4,959 4,987

Employer

Coun ty of Imperial 1

El Centro School System

Imperi al Irri ga tion Distri ct

Centi nela Sta te Prison

Calipatria State Prison

Homeland Securi ty/U .S. Border Patrol

El Centro Reg ional Med ica l Center I

Naval Air Fac ility

Impe ri al Va lley Coll egt

Cost co I

Wal Mart

United States Gypsum CO

Cal Energy Operating Co./Ormat

J. C. Penney

Macy's

Homeland Security/U.S. Border Patro l I

CITY OF EL CENTHO PHINCIPAL EMPLOYEHS

AS OF nJNE 30, 201 8 AND 2009

Type Of Business

Govern menta l

Education

Water and Power

Prison

Prison

Government

Hospital

Military

Educa tion

Reta il

Retai l

Manufac turing

Power

Reta il

Reta il

Gove rn ment

Fiscal Year 20 18 Percent of

Tota l Employees Employment

2, 11 4 3.3 1%

1,3 69 2. 15%

1,310 2.05%

1,070 1.68%

1,064 1.67%

989 1.55%

96 1 1.5 1%

592 0.93%

340 0.53%

250 0.39%

239 0.37%

230 0.36%

215 0.34%

148 0.23%

10,89 1 17.07%

"Tola t Emptoymem" as used above represents the tola l employment withi n the County of Imperial

1 Employers within or near the geographi ca l boundaries of the City ofEI Centro

Source: City of El Centro Economic Development Department

209

Ra nk

2

3

4

5

6

7

9

10

II

12

13

14

Fisca l Year 2009 Percent of

To tal Employees Employment

2,000 3.52%

1, 152 2.03%

1,393 245%

1,285 2.26%

1,205 2. 12%

991 1.74%

913 1.6 1%

1,000 1.76%

543 0.96%

200 0.35%

393 0.69%

240 042%

150

150 0.26%

11 ,6 15 20. 18%

Ra nk

5

2

3

4

7

8

6

9

12

10

II

13

13

Goverr.mental Activities General (-overnment Pub 'ic Safety Pubic Works Parks and Recreation Community Developmer.t Water

Sewer

Total (-overnment-Wide Employees

N ....... 0 Source: Ci ty c·f El Centro Finance Department

CITY OF EL CENTRO EMPLOYEES BY FUNCTION (FULL TIME EQUIVALENTS)


Fiscal Year 2009 2010 2011 2012 2013 20 14

28.0 28.0 28.0 25.0 25.5 25.5 i 24.0 124.0 124.0 123.0 126.0 123.0 13 .0 13.0 13.0 12.2 12.2 12.2 16.0 16.0 16.0 16.0 16.0 16.0 21.0 23.0 23.0 2~.0 20.0 20.0 23.0 23.0 23.0 20.7 20.9 19.9 24.0 24.0 24.0 23.1 23 .4 23.4

249.0 251.0 25 1.0 241.0 244.0 240.0

2015 2JI6 2017 2018

26.5 29.5 27.5 27.5 124.0 124.0 124.0 124.0 12.2 12.2 12.2 12.2 17.0 19.6 19.5 19.5 20.0 18.4 17. ~ 17.1 19.9 21.6 21.6 21.6 24.4 24.7 24.? 24.7

244.0 250.0 246.5 246.5

CITY OF EL CENTRO CONSTlWCTION ACTIVITY AND BANK DEPOSITS

LAST TEN FlSCAL YEARS

Other Add itions and

Commercial and Oftlce Res identia l Constructi on I Alterations I

Fisca l Tota l Total Number Number Num ber Bank Year Permits Va luation Permits Val uati on Perm its Valuat ion Permits Valuil lion Deposits 2

•

2009 5 19 19,422,765 \57 II ,195, 149 13 1 $5,879,269 23 1 2,348,34 7 72 1, 134

2010 517 18, 162,590 201 14,655,090 103 $2 ,08 1,888 2 13 I ,425,6 12 720,046

20 11 463 54, 155,698 170 50,808,067 179 $2,532,493 114 815 , 138 592,763

20 12 431 25,073,302 203 17,378,3 18 16 1 $7,149,23 1 67 545 ,753 632,842

20 13 454 17,784,542 164 13,470,009 172 $3 ,567,53 1 11 8 747,002 646,879

20 14 4 18 27,830,62 1 \08 17,790,385 262 $9,470,642 48 569,594 600,257

20 15 302 19,00 1,684 91 7,458 ,694 \55 $10,850,64 7 56 692,343 987,090

20 16 3 19 16, 193,748 92 II ,289,70 I \59 $4,226,72 1 68 677,326 1,0 17,136

20 17 297 20,99 1,360 75 17,552,549 \57 $2,886,800 65 552,0 11 I ,043,937

20 \ 8 296 4 1, 11 6,606 94 35 ,295,544 132 $5,033,322 70 787,740 1,067,65 1

* Am ounts expressed in thousands

Source: City of EI Centro Bui lding Departm ent

Source: Federal Deposit Insurance Corporation

211

CITY OF £L CENTRO CAPITAL ASSETS STATISTICS

BY FUNCTION LAST TEN FISCAL YEARS

Fiscal Year 2009 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18

Police: Stations I I I l I I I 1 Number of Police Officers 58 52 52 52 52 52 52 52 52 52

Fire: Stations 2 2 2 3 3 3 3 3 3 3 Number of Firefighters 40 40 40 40 4 1 4 1 41 4 1 41 4 1

Parks and Recreation: Parks 14 14 14 14 14 17 17 17 17 17 Community Centet I 1 MLK Sports Court Con tad Harrison Yourth Center Skate Park

Library

Water:

Number of customers 9,574 9,523 9,674 9,699 9,755 9,799 9,822 9,880 9,888 9,92 1

Maximum pumping capacity 17,000 17,000 17,000 2 1,000 2 1,000 2 1,000 2 1,000 21,000 2 1,000 21,000

(Lhuusaut.ls uf ga ll uus)

Average dai ly consumption 8,000 8,000 8,000 8,000 8,000 8,000 7,000 6,500 6,900 7, 135

(thousands of gall ons)

Miles of lines and mains 131 13 1 13 1 13 1 13 1 13 1 13 1 13 1 155 160

Wastewater:

Maximum treatment eapactiy 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000

(thousands of ga ll ons)

Average daily fl ow 4,000 4,000 4,000 4,000 3,300 3 ,300 3,300 3,500 3,500 3,500

(thousands of ga ll ons)

Mil es of lines and mains 129 129 129 129 129 129 129 129 129 129

Other

City Land Area (Square Miles) 10.05 10.05 1005 I 0.05 I 0.05 I 0.05 10.05 10.05 12.00 12.00

Mi les of Stonn Drain 26.0 26.0 26.0 26.0 26.0 26.0 26.0 26.0 36.2 36.2

Mi les of City Streets 105.0 l05.0 105.0 I 05.0 I 05 .0 I 05.0 105 .0 105.0 128. 1 135 .5

Source : City of El Centro Finance Department

212

Fiscal Year Population

2009 44,303

20 10 42,480

2011 43,013

2012 43 ,827

2013 44,192

2014 44,366

20 15 44,946

2016 45 ,305

2017 45 ,413

2018 46,315

CITY OF EL CENTRO DEMANDS FOR CITY SERVICES


Number of Number of Number of Number of Uti lity Po li ce 9 1 I Emergency Sworn

Customers Ca ll s - Total Call s Officers

9,574 49,343 17,402 55

9,523 46,069 21,208 52

9,674 38, 127 2 1,052 52

9,699 38,207 23 ,23 3 52

9,755 38,568 22 ,75 1 52

9,799 33 ,556 19,839 52

9,822 37,695 23,5 16 52

9,880 40,243 28,420 52

9,888 42,522 27,203 52

9,92 1 36,42 1 24,856 52

Includes calls for fires, medical calls, traffic accidents and hazardous conditions.

Source: City ofEI Centro Finance Department, Fire Department, and Police Department

213

Number of Nu mber of Fire Fire

Call s I

Fighters

3,384 40

3,590 40

2,726 40

3,745 40

3,848 41

4,024 41

4,123 41

4,390 41

4,450 41

4,467 41


Documents

Comprehensive Annual Financial Report For The Year Ended