CITY OF PERRIS, CALIFORNIA

CITY OF PERRIS, CALIFORNIA

COMPREHENSIVE ANNUALFINANCIAL REPORT

For the Fiscal Year Ended June 30, 2018


COMPREHENSIVE ANNUAL FINANCIAL REPORT

Year Ended June 30, 2018

PREPARED BY THE FINANCE DEPARTMENT


Introductory Section

City of Perris, California Comprehensive Annual Financial Report


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TABLE OF CONTENTS PAGE I INTRODUCTORY SECTION Table of Contents i - ii Letter of Transmittal iii - vii Directory of Officials viii Organizational Chart ix Map of the City of Perris, Southern California x Government Finance Officers Association Certificate of Achievement xi II FINANCIAL SECTION Independent Auditors’ Report 1 - 3 Management’s Discussion and Analysis 4 - 14 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 15 Statement of Activities 16 - 17 Fund Financial Statements: Balance Sheet - Governmental Funds 18 - 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position

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Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds

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Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities

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Statement of Net Position - Proprietary Funds 24 - 25 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 26 - 27 Statement of Cash Flows - Proprietary Funds 28 - 31 Statement of Fiduciary Net Position 32 Statement of Changes in Fiduciary Net Position 33 Notes to Financial Statements 34 - 84 Required Supplementary Information: Schedule of the City’s Proportionate Share of the Net Pension Liability CalPERS Pension Plan

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Schedule of Contributions CalPERS Pension Plan 86 Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios 87 Schedule of Contributions Retiree Health Benefit Plan 88 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund

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Road and Bridge Benefit District Special Revenue Fund 90 Notes to Required Supplementary Information 91

City of Perris, California Comprehensive Annual Financial Report


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TABLE OF CONTENTS - Continued

PAGE Supplementary Schedules: Non-major Governmental Funds: Combining Balance Sheet 92 - 97 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 98 - 103 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Major Debt Service Funds 104 - 105 Major Capital Project Funds 106 - 107 Non-major Special Revenue Funds 108 - 125 Non-major Capital Project Funds 126 - 131 Agency Funds Combining Statement of Fiduciary Assets and Liabilities - Agency Funds 132 Statement of Changes of Fiduciary Assets and Liabilities - City Cash Trust Fund 133 Statement of Changes in Fiduciary Assets and Liabilities - Community Facilities Districts 134 Statement of Changes in Fiduciary Assets and Liabilities - Assessment District 86-1 135 Statement of Changes in Fiduciary Assets and Liabilities - Total Agency Funds 136 III STATISTICAL SECTION Net Position by Component 137 - 138 Change in Net Position 139 - 142 Fund Balances of Governmental Funds 143 - 144 Changes in Fund Balance of Governmental Funds 145 - 146 Governmental Activities Tax Revenues by Source 147 Taxable Sales by Category 148 - 149 Assessed Value and Estimated Actual Value of Taxable Property 150 Direct and Overlapping Property Tax Rates 151 Principal Property Taxpayers 152 Property Tax Levies and Collections 153 Ratios of Outstanding Debt by Type 154 Direct and Overlapping Governmental Activities Debt 155 Legal Debt Margin Information 156 Pledged Revenue Coverage 157 - 158 Demographic and Economic Statistics 159 Principal Employers 160 Full-time Equivalent City Government Employees by Function 161 Operating Indicators by Function 162 - 163 Capital Assets Statistics by Function 164 - 165

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December 26, 2018 Honorable Mayor, Members of the City Council, and Citizens of the City of Perris: It is with great pleasure that I submit the City of Perris’ Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2018. This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of the information contained in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework designed both to protect the City’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City’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 internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. Teaman, Ramirez & Smith, Inc. Certified Public Accountants, have issued an unmodified opinion on the City of Perris’ financial statements for the fiscal year ended June 30, 2018. The opinion states that the financial statements are presented fairly and are in conformity with generally accepted accounting principles. The independent auditors’ report is presented as the first component of the financial section of this report. Management has provided an overall analysis of the 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 Perris’ MD&A can be found immediately following the report of the independent auditors. Profile of the City of Perris Perris (“City”) covers approximately 33 square miles and is located 70 miles east of Los Angeles and 20 miles southwest of Riverside. The City offers a temperate Mediterranean climate with warm dry summers and mild winters. Demographically, Perris is an ethnically diverse community of approximately 77,837 residents, of which 75% are of Hispanic or Latino origin, and the average household size is 4.5 people. The City of Perris was incorporated in 1911 under the general laws of the State of California and enjoys all the rights and privileges afforded to a general law city. The City is governed by a five-member City Council under the Mayor-Council-Manager form of government. Policy-making and legislative authority are vested in the City Council, consisting of the Mayor and four other members. Council Members are elected at-large and do not represent any one district or area within the City. The Mayor and Council Members are elected to a four-year term and the City does not have term limits. Regular elections are conducted in November of even numbered years. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policy direction of the City Council and for overseeing the day-to-day operations of the government.

City of Perris C a l i f o r n i a

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The City of Perris employs approximately 106 employees. Services include construction and maintenance of City streets, economic development, parks, recreation and senior services, animal control, disaster preparation, as well as community development activities such as urban planning, building permits and inspections, and business licensing. The City contracts for police and fire protection and water and waste water services. The Perris Public Financing Authority, Utility Authority, Housing Authority, Joint Powers Authority, and Community Economic Development Corporation are also included as an integral part of the City’s financial statements. Local Economy The median household income for Perris residents is approximately $54,657 and many of those in the labor force commute to job locations outside the City. In the past 5 years, the City has remained focused on attracting local businesses and jobs, as well as providing more eateries for its residents. The City’s growth and success resulting from that dedicated focus has produced a number of new establishments that include: Super Walmart, La Gare Café, Dollar Tree, Corky’s Homestyle Kitchen & Bakery, Starbucks, Chipotle, Pieology, Popeyes, Waba Grill, Yogurtland, Wendy’s, Jimmy John’s, Pacific Dental, Verizon, T-Mobile, Great Clips, America’s Best Contacts and Eyeglasses, Winchell’s, Sally Beauty Supply, Baskin Robbins, Jamba Juice, Daniel’s Jewelers, and Fitness 19. Upcoming establishments include Dickey’s Barbecue, Ulta Beauty, Mountain Mike’s Pizza, Five Below, Hibbett Sports, Ross, and Burlington. The commercial and industrial sectors in Perris have also realized new establishments as Home Depot and Wayfair expanded their existing operations to include additional warehouses and TechStyle (JustFab.com) began operating their new distribution center in January 2018. Due to the addition of numerous sales tax producing businesses in the City, sales tax revenues have increased exponentially. Receipts of sales tax revenues in fiscal year 17-18 increased from $10.5M in fiscal year 16-17 to $21M, an increase of 100%. Local retail sales, the primary source of sales tax revenues, continued to experience strong growth shown by the local point of sale activity increasing by 24%. Overall, taxable sales in the restaurant category were up 19% duly attributed to some of the establishments listed above. The top sales tax producing categories in prior years included business/industry, building/construction, and fuel/service stations. In fiscal year 17-18, the fulfillment centers category surpassed all three of those top sales tax revenue producers. For three quarters in a row beginning with 2017 Q4, the per capita sales in the City of Perris have exceeded not only all other cities in Riverside County, but also Riverside County itself, Southern California, and the State of California. The local housing market continues to grow as the affordability advantage compared to other parts of Southern California remains. In Perris, the median home price increased 10% in the third calendar quarter of 2018 when compared to the same time period last year. All 52 local governments in Riverside and San Bernardino Counties (the “Inland Empire”) saw assessed values increase in 2018 and Perris tied with the City of Fontana for the third highest increase at 11%. Home construction in the region has slowed somewhat, but many years of record low interest rates boosted home buying totals and prices upward in prior years. With raising interest rates, concerns of affordability, and low inventory the housing market is likely to continue growing at a slow pace. Currently, there are over 10,000 planned residential units in the various stages of the building permit approval process and completion of these units is expected to occur over the next 10 years. The City’s number of new residential building permits issued decreased from 294 in the prior fiscal year to 114 in 2018. The number of new commercial building permits issued increased from 30 the prior fiscal year to 31 in 2018. Distribution and manufacturing companies are attracted to the area because of the land availability for large buildings and employment gains in the region are driving the continued demand for industrial space. As of the third quarter of 2018, Perris’ total inventory square footage of industrial buildings was approximately 24 million. Of that inventory, 5.6% was vacant and when compared to 6 major cities in the East Inland Empire (Colton, Corona/Norco, Moreno Valley, Redlands, Riverside, San Bernardino), Perris had the third lowest vacancy rate. One other economic indicator, unemployment, has continued to drop from 16% five years ago to just 6.7% in 2018. This statistic indicates the local economy is growing and producing jobs even as housing sales are only seeing slow growth.

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Long Range Financial Planning Budget Process. The City’s five-year capital improvement program is adopted annually and the operating budget is adopted bi-annually, both by the City Council. Strong financial reporting practices, conservative budgeting, and vigilance over costs have resulted in the City maintaining a healthy financial position. The process for budgeting the City’s capital improvement program begins at the end of each calendar year. Department heads and project managers, through the goals set by the City Council, update existing project budgets and propose new projects for the City Council to approve. The primary goal of the City’s capital improvement program is to utilize existing resources efficiently with minimal burden to the general fund. The process for the bi-annual operating budget begins early in spring every two years. Each department head develops goals and objectives based upon the City’s strategic planning session, the community’s concerns, and City Council direction. The goals are reflected in the two-year budget proposed for approval by the City Council. The overall budget is developed for the community’s best interest and takes into consideration available resources. Continuing to do more with less and maintaining service levels have been the primary budget objectives in prior years. The present focus is to expand services as the economy improves and as new or increasing resources become available. A mid-year update is provided to the City Council at the halfway mark of each of the two fiscal years and throughout the budget cycle supplemental appropriations are made to the adopted budget as necessary and as approved by the City Council. General Fund Reserve. On August 30, 2011 the City Council adopted a fund balance policy in compliance with GASB Statement No. 54, which committed fund balance in an amount equal to 35% of general fund expenditures. These reserves are committed for use specifically in the case of unforeseen circumstances in addition to $3.4 million for disaster preparedness, $1.3 million for vehicle and equipment replacement, $1.3 million for major capital improvements and repairs, and $200,000 as a budgetary contingency. Relevant Financial Policies Budget Policies and Practices. Budgets are adopted by the City Council. As provided by City ordinance, the Director of Finance is responsible for preparing the budget and for its implementation after adoption. All appropriations lapse at year end, except those approved for carryover. The City Manager has the legal authority to transfer budget appropriations within a fund. Changes to total fund appropriations require the majority approval of the City Council. The City maintains budgetary controls to ensure compliance with legal provisions specified in the budget adopted by the City Council. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. One-Time Revenue. It is the policy of the City to budget conservatively and in line with economic indicators of the various revenues it receives in its general fund. It is general practice for the City to realize one-time revenue in the general fund, however it is not customary for one-time revenue to be budgeted until receipt of the revenue is guaranteed. This is usually accomplished by a budget amendment that occurs during the fiscal year the revenue is to be received. Cash Management Policies and Practices. The City Council annually adopts an investment policy with the intention of minimizing credit and market risks while maintaining a competitive yield on its investments. During 2017-18, the City’s funds were invested primarily in demand deposit accounts, the State of California Local Agency Investment Fund (LAIF), U.S. Government Treasuries, Agency securities, and commercial paper. Investments are made from pooled cash of all funds and earnings are allocated to the various funds in proportion to their relative cash book balance. Pension and Other Post-Employment Benefits. The City of Perris has a defined benefit pension plan that provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. The City contributes to the California Public Employees Retirement System (CalPERS), an agent, multiple-employer public employees defined benefit pension plan for its regular employees.

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The City also provides post-retirement health care benefits for its retired employees according to the employee agreements for each of the employee groups. As of the end of the current fiscal year, there were 50 retired employees receiving these benefits, which are financed on a pay-as-you-go basis. Additional information regarding the City of Perris’ pension arrangements and post-employment benefits can be found in the notes to the financial statements. In July 2018, the City Council approved the setup of two separate accounts with the purpose to prefund pension and other post-employment benefits (OPEB). The City has set up the accounts CalPERS for the prefunding of OPEB and California Employers’ Retiree Benefit Trust (CERBT) for the prefunding of pension benefits. The prefunding accounts are irrevocable trusts and comply with Internal Revenue code Section 115. In addition to setting aside assets to offset the respective liabilities of each future employee benefit, entering into an investment management agreement with the two chosen trust providers will allow the City to make long-term investments to match its long-term obligations. Per the California Government Code, investments of public funds are limited to certain instruments, but funds set aside in an irrevocable trust can be invested in higher yielding, longer term, and more diverse instruments. In the next fiscal year, the City expects to have a City Council approved policy in place allowing staff to begin funding both accounts. Major Initiatives The City plans to maintain an ongoing commitment to several major initiatives as described below. City Infrastructure and other Capital Improvements. The five-year capital improvement program has committed in excess of $84 million in funding for transportation, parks, community facilities, and other projects. Public Safety. More General Fund dollars are devoted to public safety than for any other purpose. The City’s general fund budget has set aside over $20 million for Police and Fire services. In fiscal year 16-17, the City Council approved the expansion of Police services to include an additional 10 hours of patrol each day, a new traffic officer position, a new community service officer position, and the addition of a K-9. This expansion of services remained throughout fiscal year 17-18. Parks. The City experienced a slowdown of park development impact fees throughout the economic downturn. The challenge for the department in recent years has been generating new revenue sources to maintain existing parks, facilities, and programs to keep up with the increased demand for more affordable recreational activities. A slowed housing market contributed to the decreased impact fees collected for residential development, but the department implemented a new park impact fee in late 2017 that would be paid by industrial developers. The new source of park funds has helped mitigate the shortage of revenues to service the City’s 274 acres of parkland. The voters of Perris also approved a tax on cannabis dispensaries in 2017 that the Perris City Council has directed staff to collect for use by this department as the development of new recreation facilities are completed in the City in the future. There are other funded or developer conditioned park projects that are anticipated to begin or continue construction in the next year including the following: - Enchanted Heights Park Improvements - San Jacinto River Trail - Linear Park Lighting Project - Morgan Street Park Improvements - Dog Park at Rider Street and Old Evans Road - Perris Valley Channel Trail Extension Economic Development. The Perris Community Economic Development Corporation (the “Perris CEDC”) was incorporated on April 16, 2014 and formed as a nonprofit public benefit corporation under Section 501(c)(3) of the Internal Revenue Code. The specific and primary purpose of this corporation is to provide physical, economic, and educational development and revitalization efforts resulting in expanded employment, economic prosperity, and business and housing opportunities for businesses and residents. The Perris CEDC is attracting new businesses to the downtown area, namely, the

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numerous establishments mentioned above located in the Perris Marketplace, Nuevo Crossings, and Spectrum shopping centers. The Perris CEDC will continue revitalizing the Perris community with a commercial façade program, restaurant incentive program, and restoring the Perris Theatre. Financial Management. The City is committed to the highest standards of financial management and stewardship of public resources. On July 14, 2015 the City Council approved a five-year contract with Tyler Technologies to provide a virtual software platform commonly known in the municipal community as “MUNIS.” Implementation of the project began in September 2015 and continued through early 2018 in order to migrate the general ledger, accounts payable, accounts receivable, payroll, cashiering, and business licensing modules from the City’s old accounting system. The new software provides one location for all financial data and a virtual platform for employees, residents and customers, and department heads to view documents and budgetary data in real time, submit timesheets electronically, and utilize electronic workflow to strengthen internal control. Financial Transparency. The City Council has committed to expanding financial transparency concurrent with the implementation of MUNIS described above. In October 2017, the City announced the newest addition to the City’s online financial transparency portal: OpenGov. The OpenGov platform serves as a medium between the public and City financial information. It is an interactive platform that allows users to drill down and search for specific financial data online. The data is updated each month directly from the MUNIS software, essentially allowing any user to view real-time information about the financial activity of the City. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada awarded the thirteenth Certificate of Achievement for Excellence in Financial Reporting to the City of Perris for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2017. In order to be awarded the Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City believes that the current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Completion of the City’s Comprehensive Annual Financial Report is a significant accomplishment. Special recognition is due to the entire staff of the Finance Department. Special thanks go to Stephen Ajobiewe, Finance Manager, Adrienne Morales, Accountant I, and James Frigo, Accountant I. Only through the efforts and cooperation of all of the Finance Department staff, was the preparation of this document possible. I would also like to express my appreciation to the Mayor, the City Council, and the City Manager for their interest and support in planning and conducting the financial activities of the City in a responsible and progressive manner. Sincerely,

Jennifer Erwin Director of Finance

Michael Vargas MayorMalcom Corona Mayor Pro TemMarisela Magana Council MemberDavid Starr Rabb Council MemberRita Rogers Council Member

Nancy Salazar City Clerk

Richard Belmudez City ManagerDarren Madkin Assistant City ManagerClara Miramontes Assistant City ManagerDr. Stephen Ajobiewe Finance ManagerIsabel Carlos Director of Administrative ServicesArturo Cervantes Chief Information OfficerSabrina Chavez Director of Community ServicesJennifer Erwin Director of FinanceDaryl Hartwill Director of Public WorksKenneth Phung Planning ManagerDr. Grace Williams Director of Planning and Economic Services

Eric Dunn City AttorneyHabib Motlagh City EngineerGreg Fellows Police CaptainKirk Barnett Battalion Chief

City of Perris

Elected Officials

Management

Contractors

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City Council

City Manager

Richard Belmudez

Assistant City Manager

Darren Madkin

Public Works/Parks/Special Districts

Daryl Hartwill

Information Technology

Arturo Cervantes

Community Services

Sabrina Chavez

Assistant City Manager

Clara Miramontes

Housing/Planning/Economic Development

Dr Grace Williams

Code Enforcement DepartmentRobert Trejo

Building DepartmentJesus Sanchez

Finance DepartmentJennifer Erwin

Human Resources/Risk Management/Administrative

Services

Isabel Carlos

Police Services Captain Greg Fellows

Fire Services Chief Kirk Barnett

City AttorneyEric Dunn

City Engineer

Habib Motlagh

City Clerk

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City of Perris, CA

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Financial Section

INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of The City Council City of Perris Perris, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Perris, California (the “City”) as of and for the 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 financial statements based on our audit. 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 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 financial 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 City’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 expressing an opinion on the effectiveness of the City’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 evaluating the overall presentation of the financial statements. 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, 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 Perris, California, as of June 30, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Richard A. Teaman, CPA David M. Ramirez, CPA Javier H. Carrillo, CPA Bryan Daugherty, CPA Joshua Calhoun, CPA 4201 Brockton Ave Suite 100 Riverside CA 92501 951.274.9500 951.274.7828 FAX www.trscpas.com

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Emphasis of Matter Change in Accounting Principle As described in Note 1 to the basic financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statements No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information on pages 4 through 14 and 86 through 91 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, supplementary section, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary section is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary section is fairly stated in all material respects in relation to the basic 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.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 26, 2018, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Riverside, California December 26, 2018

CITY OF PERRIS Management’s Discussion and Analysis

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This section of the City’s Annual Financial Report provides a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2018. We encourage readers to consider the information presented here in conjunction with City’s financial statements beginning on page 15. All amounts are expressed in thousands of dollars. Financial Highlights The following are some key financial highlights for the fiscal year: The City’s assets exceeded its liabilities, deferred inflows and outflows of resources (net position) at the close of the

most recent fiscal year by $318,019. The amount (unrestricted net position) that may be used to meet the government’s ongoing obligations to citizens and creditors was negative $721.

The City’s total net position increased by $28,919 for fiscal year 2017-2018. As of June 30, 2018, the City’s governmental funds reported combined fund balances of $328,128, an increase of

$54,631 in comparison with the prior year. At the end of the current fiscal year, assigned fund balance for the General Fund was $6,200 and unassigned fund

balance for the General Fund was $16,793, totaling $22,993. If this total is reduced by the general fund minimum reserve amount of $16,330, the remainder ($6,663) is equal to 17% of general fund total expenditures.

The City of Perris’ total long-term debt increased by $34,078 for governmental activities and business-type activities

decreased by $5,227 for fiscal year 2017-2018. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Perris’ basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements 2) fund financial statements and 3) notes to basic financial statements. This report also contains supplementary information in addition to the basic financial statements.

S u m m a ry D e ta il

C o m p o n e n ts o f th e F in a n c ia l S e c tio n

M a n a g e m e n t'sD is c u s s io n

a n dA n a ly s is

B a s icF in a n c ia l

S ta te m e n ts

R e q u ire dS u p p le m e n ta ry

In fo rm a tio n

G o v e rn m e n t-w id eF in a n c ia l

S ta te m e n ts

F u n dF in a n c ia l

S ta te m e n ts

N o te s to th e

F in a n c ia lS ta te m e n ts


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Overview of the Financial Statements (Continued) Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, liabilities and deferred inflows and outflows of resources, with the difference between reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’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 affect 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 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 and charges (business-type activities). The governmental activities of the City of Perris include general government, public safety, public works, parks and recreation, and interest on long-term debt. The business-type activities of the City of Perris include a Water, Sewer, Public Utility Authority, Housing Authority, Solid Waste Utility and the Perris Community Economic Development Corporation (CEDC). The government-wide financial statements include not only the City itself (known as the primary government), but also four legally separate entities, the Perris Public Utility Authority, the Perris Public Financing Authority, the Perris Joint Powers Authority, and the Perris Community Economic Development Corporation. The Perris Redevelopment Agency has since been abolished and its activities are reported as a separate Successor Agency trust fund. The City is financially accountable for these entities and financial information for these blended component units is reported within the financial information presented for the primary government itself. The government-wide financial statements can be found beginning on page 15 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financial 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 City’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenue, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.


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Overview of the Financial Statements (Continued) The City maintains thirty 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, Public Financing Authority Debt Service Fund, Joint Powers Authority Debt Service Fund, Road and Bridge Benefit District Special Revenue Fund, Storm Drain Development Capital Project Fund, and the Capital Improvements Projects Fund, each of which are considered to be major funds. Data from the other twenty-four 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 in the non-major governmental funds supplementary information section of this report. The City 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 beginning on page 18 of this report. Proprietary Funds. The City maintains several proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the Water Enterprise Fund, Sewer Enterprise Fund, Public Utility Authority Enterprise Fund, the Solid Waste Enterprise Fund, the Housing Authority and Perris CEDC. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the maintenance and operation of the City’s water services, sewer services, and solid waste disposal services, as well as information on housing services and programs for residents. These are considered to be Business-type activities in the government-wide financial statements. The Water Enterprise, Sewer Enterprise, Public Utility Authority Enterprise, Solid Waste Enterprise, Housing Authority and Perris CEDC Funds are aggregated and presented as a major fund in the financial statements. The basic proprietary fund financial statements can be found beginning on page 24 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 Perris’ own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found beginning on page 32 of this report. Notes to the Basic Financial Statements. The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found beginning on page 34 of this report. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits to its employees and a comparison of budgeted to actual results for the general and major special revenue funds. Required supplementary information can be found beginning on page 85 of this report. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found beginning on page 92 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. In this case, the City’s assets and deferred outflows exceeded liabilities and deferred inflows by $318,019 at June 30, 2018. A summary of the government-wide statement of net position at June 30, 2018 follows:


7

2018 2017 2018 2017 2018 2017Assets:Current and other assets 386,831$ 322,242$ 5,267$ 9,187$ 392,098$ 331,429$ Capital assets 189,433 180,330 18,922 20,051 208,355 200,381

Total assets 576,264 502,572 24,189 29,238 600,453 531,810

Deferred Outflows of Resources:Pension Related Items 3,900 3,301 158 141 4,058 3,442 Deferred Charge on Refunding (Net) 1,078 1,142 - - 1,078 1,142

Total deferredoutflows of resources 4,978 4,443 158 141 5,136 4,584

Liabilities:Current and other liabilities 58,590 48,111 3,093 2,214 61,683 50,325 Long-term liabilities 224,301 190,223 606 5,833 224,907 196,056

Total liabilities 282,891 238,334 3,699 8,047 286,590 246,381

Deferred Inflows of Resources:Pension Related Items 947 884 33 29 980 913

Total deferredinflows of resources 947 884 33 29 980 913

Net position:Net Investment in Capital Assets 189,433 180,330 18,922 14,755 208,355 195,085 Restricted 101,391 79,411 8,994 10,146 110,385 89,557 Unrestricted 6,580 8,056 (7,301) (3,598) (721) 4,458

Total net position 297,404$ 267,797$ 20,615$ 21,303$ 318,019$ 289,100$

City of Perris Net PositionJune 30, 2018

TotalActivitiesActivitiesGovernmental Business-type


8

The largest portion of the City’s net position ($208,355) reflects its investment in capital assets (e.g., land, buildings, infrastructure, machinery and equipment, etc.), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In the current fiscal year, business-type activities’ investment in capital assets changed by $4,168 which arose from the change in asset related debt (long-term liabilities). On Page 56, the additions and deletions to long-term liabilities are outlined. For business-type activities, the majority of the change is due to a combined addition of $145 and a total deletion of $5,371. A description of the note payable reduction is on page 57. A portion of the City’s net position ($110,385) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, if any, may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report a positive balance in all three categories of net position for its governmental activities. In business-type activities, the net position is positive for all categories except “unrestricted.” The unrestricted net position slightly decreased by $3,703. The City as a whole has a positive total net position with only unrestricted ($721) having a negative balance. Governmental and Business-type Activities. Governmental and Business-type activities increased the City’s net position by $28,919 thereby accounting for the 10.0% increase in the net position of the City. Key elements of this increase are as follows: Governmental activities increased the City’s net position by $29,607 due mainly to total revenues significantly

surpassing expenditures. Contributing to the increased net position are: a) increase of $752 in capital grants and contributions, b) increase of $1,845 in operating grants and contributions, c) increase of $16,978 in charges for services, d) increase of $10,789 in sales and use tax, e) increase of $488 in vehicle license in lieu tax. Overall, the governmental activities recorded an increase of $36,796 in net position before prior year adjustment of $7,189 for a net increase of $29,607. The prior year adjustment of $7,189 was to adjust the beginning balance of the net OPEB liability based on the most current actuarial valuation in line with the new GASB Statement No. 75 for post-employment benefits other pension.

Business-type activities decreased the City of Perris’s net position by $688 due to a combined decrease of $2,281 due to expenses exceeding revenues relating to Sewer Utility, Public Utility, Water Utility, Solid Waste Utility, Housing Authority and Perris CEDC; and the net increase of $1,593 in revenues relating to General Revenues, Transfers and Special Items. The $1,593 of general revenues, transfers and special items mainly relate to 1) a theft loss of $895 for which insurance claim was submitted after the year end, 2) CIP project abandonment of $397 and 3) forgiveness of note payable (representing revenue) of $2,331. Overall, the business-type activities recorded a decrease of $688 in net position.


9

2018 2017 2018 2017 2018 2017Revenues:

Program revenues:Charges for services 40,077$ 23,099$ 7,670$ 7,236$ 47,747$ 30,335$ Operating grants and Contributions 12,996 11,151 - - 12,996 11,151 Capital grants and Contributions 16,115 15,363 - 2,363 16,115 17,726

General revenues:Property taxes 6,838 6,157 - - 6,838 6,157 Sales and Use taxes 21,376 10,586 - - 21,376 10,586 Sales Tax in Lieu Tax - - - - - - Motor Vehicle 40 33 - - 40 33 Vehicle License in Lieu Tax 6,272 5,784 - - 6,272 5,784 Franchise taxes 2,835 2,496 - - 2,835 2,496 Transient occupancy taxes 166 115 - - 166 115 Real property taxes 286 286 - - 286 286 Marijuana Taxes 181 - - - 181 - Investment earnings (295) 163 8 2 (287) 165 Gain (Loss) on Sale of Property - (267) - - - (267) Miscellaneous 68 170 - - 68 170

Total revenues 106,955 75,136 7,678 9,601 114,633 84,737

Expenses:General government 12,817 9,431 - - 12,817 9,431 Public safety 24,648 22,936 - - 24,648 22,936 Public works 20,141 12,808 - - 20,141 12,808 Parks and recreation 4,319 3,874 - - 4,319 3,874 Interest on long term debt 7,688 6,996 - - 7,688 6,996 Water utility - - 3,089 2,855 3,089 2,855 Sewer utility - - 2,364 2,134 2,364 2,134 Public Utility - - 1,215 1,182 1,215 1,182 Solid Waste Utility - - 1,201 1,172 1,201 1,172 Housing Authority - - 919 792 919 792 Perris CEDC - - 1,163 1,448 1,163 1,448

Total Expenses 69,613 56,045 9,951 9,583 79,564 65,628

Increase (decrease) in net position beforespecial items and transfers 37,342 19,091 (2,273) 18 35,069 19,109

Special Items - - 1,039 - 1,039 - Transfers (546) (569) 546 569 - -

Change in net position 36,796 18,522 (688) 587 36,108 19,109

Net position as reported, July 1, 2017 267,797 249,275 21,303 20,716 289,100 269,991 Prior Period Adjustment (7,189) - - - (7,189) -

Net position as restated, July 1, 2017 260,608 249,275 21,303 20,716 281,911 269,991

Net position, June 30, 2018 297,404$ 267,797$ 20,615$ 21,303$ 318,019$ 289,100$

Activities Activities Total

City of Perris, Change in Net PositionJune 30, 2018

Governmental Business-type


10

Expenditures by Source Business‐Type Activities

Water Utility: 31.04%

Sewer Utility: 23.75%

Public Utility: 12.20%

Solid Waste Utility: 12.07%

Housing Authority: 9.24%

Perris CEDC: 11.69%

‐

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Program Revenues and Expenses

Business‐Type Activities

ProgramRevenues

Expenses

Revenues by Source ‐ Business‐Type Activities

Water Utility: 27.66%Sewer Utility: 19.84%Public Utility: 9.24%Solid Waste Utility: 12.39%Housing Authority: 2.78%Perris CEDC: 0.77%Investment Income: 0.08%Special Item ‐ Forgiveness of Note Payable: 22.08%


11

‐

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Program Revenues and Expenses

Governmental Activities

Program

Revenues

Expenses

Revenues by Source ‐ Governmental ActivitesCapital Grants & Contributions: 14.61%

Operating Grants & Contributions: 12.29%

Sales & Use Taxes: 20.22%

Motor Vehicle in Lieu Tax: 0.04%

Vehicle License Fee in Lieu Tax: 5.93%

Investment Income: ‐0.28%

Franchise Taxes: 2.68%

Transient Occupancy Taxes: 0.16%

Property Taxes: 6.47%

Real Property Transfer Taxes: 0.27%

Marijuana Taxes: 0.17%

Charges for Services: 37.90%

Other Revenue: 0.00%

Expenditures by SourceGovernmental Activities

General Government:18.41%

Public Safety: 35.41%

Public Works: 28.93%

Parks and Recreation:6.20%

Interest on Long‐Term

Debt: 11.04%


12

As noted earlier, the City’s uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information may be useful in assessing the City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $328,128. The City’s governmental funds report unassigned fund balance of $15,384. The remainder of the fund balances are either non-spendable, restricted, committed or assigned to indicate amounts to be used for a specific purpose or in a non-spendable form 1) for deposits with other agencies ($2,284), 2) for advances ($9,475), 3) for prepaid items ($3), 4) restricted resources ($294,782), and 5) for assigned amounts ($6,200). The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned and assigned fund balance of the General Fund was $16,793 and $6,200 respectively, while the total fund balance reached $34,756. As a measure of General Fund liquidity, it may be useful to compare the unassigned and assigned fund balances less the general fund minimum reserve to total fund revenues. Unassigned and assigned fund balance less the general fund minimum reserve ($16,330) represents 14.45% of total general fund revenues of $46,658, while the total General fund balance represents 75% of the same amount. The fund balance of the City’s General Fund increased by $7,368 during the current fiscal year. The increase in the fiscal year can be attributed primarily to an overall increase in revenues that exceeded the increase in expenditures by $7,241 and additional amount of $126 for other financing uses. Major increases were in taxes, licenses, permits and fees, investment earnings and contributions; and in general government, public safety, public works, parks and recreation and capital outlay expenditures. Taxes increased by $12,645, licenses, permits and fees increased by $261, investment earnings increased by $25 and contributions increased by $189 from the prior year amounts. General government expenditures increased by $2,516, public safety increased by $1,632, public works increased by $289 and parks and recreation increased by $428 over prior year amounts. The Public Financing Authority Debt Service Fund (PFA) had a decrease of $2,561. The decrease was mainly due to debt service expenditures being higher than the investment earnings of the Fund. The Joint Powers Authority Debt Service Fund (JPA) had an increase of $25,986. The JPA issued 1) $22,175 2017 Local Agency Revenue Bonds, Series B, to acquire CFD 2001-1 (May Farms 1A 4 & 5) Special Tax Bonds, 2) $4,060 2017 Local Agency Revenue Refunding Bonds, Series C, to acquire CFD 93-1 (May Ranch) and CFD 2004-5 (Amber Oaks II) Special Tax Bonds and 3) $4,410 2018 Local Agency Revenue Bonds, Series A, to acquire CFD 2014-1 (Avelina IA-2) Special Tax Bonds. The net amount of the issued bonds of $33,064 (net of premiums and discounts on the bonds issued) and the deficiency of the operating revenues under expenditures of $7,078 accounted for the $25,986 increase in the JPA Fund balance. The Road and Bridge Benefit District Fund had an increase in fund balance of $24,081. The increase was mainly due to developer fees collected for development projects being higher than the amount expended on capital projects as of the end of the fiscal year. The fund balance will be expended in subsequent fiscal years for capital projects. The Capital Improvements Projects Capital Project Fund had a decrease of $1,691, which is attributed to total capital outlay being higher than the revenues received during the fiscal year. The Storm Drain Development Capital Project Fund is used to account for the capital improvements of upgrading the storm drains within the City. The fund balance of the Storm Drain Development Capital Project Fund was a deficit of $2,967 due to construction expenditures higher than the developer fees received. The Other Governmental Funds fund balance increased $1,450 primarily due to increase in revenues over expenditures and transfers out in the following funds: City-wide Lighting District, Lighting District No. 84-1, Landscape Maintenance District, Flood Control Maintenance District, Gas Tax, Sidewalk Grant SB 821, RMRA Grant, CDBG Entitlement, State Grants,


13

Development Fees, HUD NSP-3, HOME Grant Program, Construction, Railway Depot Restoration and Community Facilities District 05-4. The fund balance of each of these funds is restricted to specific uses. Please refer to the supplementary schedules for further description of each fund purpose. General Fund Budget. During the year, there was a $3,652 increase in the original and final expenditure budget, and a $7,335 increase in the original and final revenue budget. Special Revenue Funds. The City’s special revenue funds are governmental funds used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specific purposes. The total fund balance of all special revenue funds is $44,597. Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Enterprise Funds. Unrestricted net position of the enterprise funds totaled ($7,301) which represents a decrease of $3,703 from the prior fiscal year. Please see the note on Page 8 for details of this fund balance change. Capital Asset and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business type activities amounts to $208,355 (net of accumulated depreciation of $205,825) as of June 30, 2018. This investment in capital assets includes buildings, building improvements, infrastructure (roads, sidewalks, streetlights, etc.), and machinery/equipment, vehicles and water and sewer infrastructures and equipment. The net increase in the City’s investment in capital assets for the current fiscal year was $7,974 before depreciation.

2018 2017 2018 2017 2018 2017

Land 39,856$ 39,856$ 801$ 801$ 40,657$ 40,657$ Buildings 24,097 23,346 - - 24,097 23,346 Building Improvements 8,925 8,692 - - 8,925 8,692 Improvements other than Buildings - - 315 315 315 315 Machinery 2,534 2,464 - - 2,534 2,464 Vehicles 2,771 2,492 105 105 2,876 2,597 Infrastructure 277,032 273,331 - - 277,032 273,331 Major equipment - - 543 543 543 543 Boosters - - 36 36 36 36 Reservoirs - - 2,069 2,069 2,069 2,069 Mains - - 19,321 19,321 19,321 19,321 Services - - 2,430 2,430 2,430 2,430 Meters - - 1,406 1,406 1,406 1,406 Hydrants - - 1,272 1,272 1,272 1,272 Manholes - - 885 885 885 885 Wells - - 996 996 996 996 Construction in progress 28,786 17,000 - 397 28,786 17,397

Total 384,001 367,181 30,179 30,576 414,180 397,757 Less: Accumulated Depreciation 194,568 186,851 11,257 10,525 205,825 197,376 Total net capital assets 189,433$ 180,330$ 18,922$ 20,051$ 208,355$ 200,381$

Activities Activities Total

Capital Assets(Net of Accumulated Depreciation)

Governmental Business-type


14

The City’s increase in capital assets was primarily due to $13,123 additional work on construction in progress of infrastructure projects. Further, the completion of the following five projects during the fiscal year added a total of $3,179 to Governmental Activities-Infrastructure: Clearwater Elementary School project ($187), Southeast High School project ($432), Track 32707 project ($2,207), Metz Park Improvement project ($201) and Foss Field project ($152). The major construction in progress added to the Governmental Activities-Construction in progress capital assets. Infrastructure improvements are performed on parks, sidewalks, pavement, storm drains, pipelines, bridges, curbs and gutters, and street lights. Additional information on the City’s capital assets can be found in note 5 to the basic financial statements on page 54 of this report.

Debt Administration. At the end of the current fiscal year, the City had total bonded debt outstanding of $191,110 which represents revenue and tax allocation bonds issued for Redevelopment projects and bonds issued by the Public Financing Authority and Joint Powers Authority to purchase CFD and assessment district bonds. The City of Perris’ total bonded debt increased by $22,125 during the fiscal year due to the issuance of Local Agency Revenue Bonds of $30,645 and regular principal payments on all revenue bonds reducing the principal owed to date by $8,520. Additional information on the City’s outstanding debt can be found in note 6 to the basic financial statements on page 56 of this report. State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of its total assessed valuation. The current debt limitation for the City is $839,045 which is significantly in excess of the City’s outstanding general obligation debt. Request for Information This financial report is designed to provide a general overview of the City’s finances for readers of the financial statements. Questions concerning any of the information in this report or request for additional financial information should be addressed to the Director of Finance, 101 North “D” Street, Perris, CA.

BASIC FINANCIAL STATEMENTS

Governmental Business-typeActivities Activities Total

ASSETSCash and Investments 149,951,376$ 6,583,532$ 156,534,908$ Restricted Cash and Investments 151,960,488 151,960,488 Receivables:

Accounts 3,299,586 3,045,914 6,345,500 Interest 1,955,510 9,147 1,964,657 Taxes 4,153,406 4,153,406 Loans 63,702,610 4,152,325 67,854,935

Internal Balances 8,523,718 (8,523,718) 0 Due from Other Governments 948,826 948,826 Prepaid Items 3,244 3,244 Advances to Fiduciary Funds 48,289 48,289 Deposits 2,284,123 2,284,123 Land and Construction in Progress, Not

Being Depreciated 68,642,032 801,466 69,443,498 Capital Assets, Net of Depreciation 120,790,682 18,120,540 138,911,222

Total Assets 576,263,890 24,189,206 600,453,096

DEFERRED OUTFLOWS OF RESOURCESPension Related Items 3,900,356 157,824 4,058,180 Deferred Charges on Refunding (Net) 1,077,964 1,077,964

Total Deferred Outflows of Resources 4,978,320 157,824 5,136,144

LIABILITIESAccounts Payable and Accrued Liabilities 12,291,842 2,767,675 15,059,517 Deposits and Other Liabilities 34,380,615 296,590 34,677,205 Unearned Revenues 9,548,205 28,350 9,576,555 Interest Payable on Long-term Liabilities 2,369,479 2,369,479 Long-term Liabilities:

Due Within One Year 7,938,972 35,592 7,974,564 Due in More Than One Year 216,361,803 570,729 216,932,532

Total Liabilities 282,890,916 3,698,936 286,589,852

DEFERRED INFLOWS OF RESOURCESPension Related Items 947,273 33,016 980,289

Total Deferred Inflows of Resources 947,273 33,016 980,289

NET POSITIONNet Investment in Capital Assets 189,432,714 18,922,006 208,354,720 Restricted for Development 16,183,561 16,183,561 Restricted for Streets and Flood Control 71,999,626 71,999,626 Restricted for Other Purposes 13,207,624 8,994,388 22,202,012 Unrestricted 6,580,496 (7,301,316) (720,820)

Total Net Position 297,404,021$ 20,615,078$ 318,019,099$

Primary Government

City of Perris, CaliforniaStatement of Net Position

June 30, 2018

The accompanying notes are an integral part of this statement.

15

Charges Operating Capitalfor Grants and Grants and

Functions/Programs Expenses Services Contributions ContributionsGovernmental Activities:

General Government 12,816,462$ 3,352,428$ 596,689$ $ Public Safety 24,647,753 1,137,817 925,044 Public Works 20,141,273 35,385,820 3,784,780 16,115,043 Parks and Recreation 4,319,070 200,535 20 Interest on Long-term Debt 7,687,829 7,689,660

Total Governmental Activities 69,612,387 40,076,600 12,996,193 16,115,043

Business-type Activities:Sewer Utility 2,363,841 2,093,713 Public Utility 1,214,401 974,790 Water Utility 3,089,226 2,919,460 Solid Waste Utility 1,201,169 1,307,824 Housing Authority 918,991 293,252 Perris CEDC 1,163,297 80,923

Total Business-type Activities 9,950,925 7,669,962 0 0

Total Primary Government 79,563,312$ 47,746,562$ 12,996,193$ 16,115,043$

General Revenues:Property TaxesSales and Use TaxesMotor Vehicle in Lieu Tax (Intergovernmental/Unrestricted)Vehicle License Fee in Lieu TaxFranchise TaxesTransient Occupancy TaxesReal Property Transfer TaxesMarijuana TaxesInvestment EarningsMiscellaneous

TransfersSpecial Item - Theft LossSpecial Item - CIP Project AbandonmentSpecial Item - Forgiveness of Note Payable

Total General Revenues, Transfers and Special Items

Change in Net Position

Net Position - Beginning of Year, As Previously ReportedPrior Period Adjustment

Net Position - Beginning of Year, Restated

Net Position - End of Year

City of Perris, CaliforniaStatement of Activities


Program Revenues


16

Governmental Business-typeActivities Activities Total

(8,867,345)$ $ (8,867,345)$ (22,584,892) (22,584,892)35,144,370 35,144,370(4,118,515) (4,118,515)

1,831 1,831

(424,551) 0 (424,551)

(270,128) (270,128) (239,611) (239,611) (169,766) (169,766) 106,655 106,655

(625,739) (625,739) (1,082,374) (1,082,374)

0 (2,280,963) (2,280,963)

(424,551) (2,280,963) (2,705,514)

6,837,893 6,837,893 21,375,762 21,375,762

39,868 39,868 6,271,822 6,271,822 2,834,989 2,834,989

165,911 165,911 285,835 285,835 181,679 181,679

(295,242) 8,134 (287,108) 67,904 67,904

(545,987) 545,987 0 (894,677) (894,677) (397,246) (397,246)

2,331,000 2,331,000

37,220,434 1,593,198 38,813,632

36,795,883 (687,765) 36,108,118

267,797,169 21,302,843 289,100,012 (7,189,031) (7,189,031)

260,608,138 21,302,843 281,910,981

297,404,021$ 20,615,078$ 318,019,099$

Net (Expense) Revenue and Changes in Net Position


17

Public JointGeneral Financing Powers

Fund Authority AuthorityASSETS

Cash and Investments 31,756,221$ $ 50,972$

Cash and Investments with Fiscal Agent 11,423,256 138,463,967Receivables:

Accounts 338,476 Interest 43,660 11Taxes 3,496,983 Loans 63,570,000

Due from Other Governments 41,784 Prepaid Items 3,244 Advances to Other Funds 9,474,789 Deposits with Other Agencies 2,284,123

Total Assets 47,439,280$ 74,993,256$ 138,514,950$

LIABILITIESAccounts Payable and Accrued Liabilities 8,859,686$ 900$ 2,550$ Deposits and Other Liabilities 3,812,382 8,026,269 9,554,530Advances from Other FundsUnearned Revenues 1,054,358

Total Liabilities 12,672,068 9,081,527 9,557,080

DEFERRED INFLOWS OF RESOURCESUnavailable Revenue - Taxes and Special Assessments 11,701 Unavailable Revenue - IntergovernmentalUnavailable Revenue - Miscellaneous

Total Deferred Inflows of Resources 11,701 0 0

FUND BALANCESNonspendable 11,762,156Restricted 65,911,729 128,957,870Assigned 6,200,000Unassigned 16,793,355

Total Fund Balances 34,755,511 65,911,729 128,957,870

Total Liabilities, Deferred Inflows of

Resources and Fund Balances 47,439,280$ 74,993,256$ 138,514,950$

Debt Service

City of Perris, CaliforniaBalance Sheet

Governmental FundsJune 30, 2018


18

Special RevenueRoad and Capital Other Total

Bridge Benefit Storm Drain Improvement Governmental GovernmentalDistrict Development Projects Funds Funds

52,624,861$ 12,717,331$ 6,548,377$ 46,253,614$ 149,951,376$

2,073,265 151,960,488

2,889,171 71,939 3,299,58674,990 18,397 10,705 76,992 224,755

656,423 4,153,406 132,610 63,702,610 907,042 948,826

3,244 9,474,789 2,284,123

52,699,851$ 12,735,728$ 9,448,253$ 50,171,885$ 386,003,203$

366,483$ $ 1,368,476$ 1,693,747$ 12,291,842$ 12,738,695 248,739 34,380,615

902,782 902,7828,458,925 34,922 9,548,205

366,483 12,738,695 10,076,140 2,631,451 57,123,444

29,313 41,014 709,920 709,920

924 924

0 0 0 740,157 751,858

11,762,15652,333,368 47,578,966 294,781,933

6,200,000(2,967) (627,887) (778,689) 15,383,812

52,333,368 (2,967) (627,887) 46,800,277 328,127,901

52,699,851$ 12,735,728$ 9,448,253$ 50,171,885$ 386,003,203$

Capital Project


19

Fund Balances of Governmental Funds 328,127,901$

Amounts reported for Governmental Activities in the Statement of Net Positionare different because:

Interest accrued on loans receivable from the Successor Agency to the Perris Redevelopment Agency and investments in Community Facility Districts 1,730,755

Capital assets, net of depreciation, have not been included as financialresources in governmental fund activity. 189,432,714

Other long-term assets are not available to pay for current period expendituresand, therefore, are reported as unavailable revenue in the funds. 751,858

Deferred outflows and inflows of resources related to pensions that are requiredto be recognized over a defined closed period.

Pension Related Deferred Outflows of Resources 3,900,356Pension Related Deferred Inflows of Resources (947,273)

Liabilities that are not due and payable in the current period and are notreported in the funds.

Interest Payable on Long-term Liabilities (2,369,479)Long-term Liabilities (224,300,775)Deferred Charges on Refunding (Net) 1,077,964

Net Position of Governmental Activities 297,404,021$

City of Perris, CaliforniaReconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net PositionJune 30, 2018


20

Public JointGeneral Financing Powers

Fund Authority AuthorityREVENUES

Taxes 38,066,668$ $ $ Licenses, Permits and Fees 2,843,814 Intergovernmental Revenues 219,609 Charges for Services 799,677 Fines, Forfeitures and Penalties 625,257 Developer Fees 549,815 Investment Earnings 421,714 3,488,759 3,628,159Special Assessments Contributions 2,502,482 17,738 37,095Miscellaneous 79,348 51,510 5,400

Total Revenues 46,108,384 3,558,007 3,670,654

EXPENDITURESCurrent:

General Government 9,584,019 11,856 27,250Public Safety 23,575,606 Public Works 1,899,348 Parks and Recreation 3,527,899

Capital Outlay 280,331 Debt Service:

Debt Issuance Costs 75,000 891,250Principal Retirement 2,840,000 5,680,000Interest and Fiscal Charges 3,192,776 4,150,625

Total Expenditures 38,867,203 6,119,632 10,749,125

Excess (Deficiency) of Revenues Over Expenditures 7,241,181 (2,561,625) (7,078,471)

OTHER FINANCING SOURCES (USES)Transfers In 925,000 Transfers Out (835,689) Revenue Bonds Issued 26,585,000Revenue Refunding Bonds Issued 4,060,000Premiums on Revenue Refunding Bonds 2,426,442Discounts on Revenue Bonds Issued (7,161)Sale of Capital Assets 37,034

Total Other Financing Sources (Uses) 126,345 0 33,064,281

Net Change in Fund Balances 7,367,526 (2,561,625) 25,985,810

Fund Balances - Beginning 27,387,985 68,473,354 102,972,060

Fund Balances - Ending 34,755,511$ 65,911,729$ 128,957,870$

Debt Service

City of Perris, CaliforniaStatement of Revenues, Expenditures, and Changes in Fund Balances

Governmental FundsYear Ended June 30, 2018


21

Special RevenueRoad and Capital Other Total

Bridge Benefit Storm Drain Improvement Governmental Governmental District Development Projects Funds Funds

$ $ $ $ 38,066,668$ 2,843,814

4,233,872 6,487,766 10,941,247 799,677

273,800 899,05726,940,938 2,893 300,380 2,737,824 30,531,850

116,566 15,297 131,211 7,801,706 5,105,167 5,105,167 3,855,000 6,412,315 170,023 306,281

27,057,504 2,893 4,549,549 18,760,791 103,707,782

593,138 10,216,263 765,630 24,341,236 4,113,860 6,013,208 3,527,899

2,976,838 2,893 6,240,509 11,265,216 20,765,787

966,250 8,520,000 7,343,401

2,976,838 2,893 6,240,509 16,737,844 81,694,044

24,080,666 0 (1,690,960) 2,022,947 22,013,738

419,892 1,344,892 (1,055,190) (1,890,879)

26,585,0004,060,0002,426,442

(7,161) 62,014 99,048

0 0 0 (573,284) 32,617,342

24,080,666 0 (1,690,960) 1,449,663 54,631,080

28,252,702 (2,967) 1,063,073 45,350,614 273,496,821

52,333,368$ (2,967)$ (627,887)$ 46,800,277$ 328,127,901$

Capital Project


22

Net Change in Fund Balances - Total Governmental Funds 54,631,080$

Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report capital outlay as an expenditure in the full amount as currentfinancial resources are used. However, in the Statement of Activities the cost of theseassets is allocated over the estimated useful life as depreciation expense.

Capital Outlay 13,470,983Depreciation (7,717,123)Capital Contributions 3,348,820

Governmental funds report activity of long-term liabilities as revenues and expenditures,but they are included as increases and reductions on the long-term liabilities in theStatement of Net Position.

Long-term Debt Principal Payments 8,520,000Compensated Absences (111,038)Net Change in the Net Pension Liability (1,855,938)Net Change in the Net OPEB Liability (416,765)Issuance of Long-term Debt (30,645,000)Accrued Interest (319,362)Amortization of Bond Premium (2,327,206)Amortization of Bond Discounts (52,693)Amortization of Deferred Charges on Refunding (64,448)

Revenues in the Statement of Activities that do not provide current financial resources arenot reported as revenues in the governmental funds.

Unavailable Revenues 117,969Accrued Interest (319,362)

Some expenses reported in the Statement of Activities do not require the use of currentfinancial resources and are not reported as governmental fund expenditures.

Net Change in Deferred Outflows and Inflows of Resources Related to Pensions 535,966

Change in Net Position of Governmental Activities 36,795,883$

City of Perris, CaliforniaReconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances

of Governmental Funds to the Statement of ActivitiesYear Ended June 30, 2018


23

Sewer Public Utility Water Solid WasteUtility Authority Utility Utility

ASSETSCurrent Assets:

Cash and Cash Equivalents 745,044$ 144,309$ $ 397,290$ Receivables:

Accounts 471,721 311,927 704,296 1,528,370 Interest 1,116 798 Loans

Total Current Assets 1,217,881 456,236 704,296 1,926,458

Noncurrent Assets:Land and Construction in Progress, Not Being Depreciated 300,564 Capital Assets, Net of Depreciation 6,957,529 8,035,842 3,127,169

Total Noncurrent Assets 6,957,529 8,336,406 3,127,169 0

Total Assets 8,175,410 8,792,642 3,831,465 1,926,458

DEFERRED OUTFLOWS OF RESOURCESPension Related Items 54,580 33,507 55,154 14,583

Total Deferred Outflows of Resources 54,580 33,507 55,154 14,583

LIABILITIESCurrent Liabilities:

Accounts Payable and Accrued Liabilities 174,099 319,400 349,644 1,579,465 Advances from Other Funds 8,047,792 475,926 Deposits 110,750 185,840 Compensated Absences Payable - Current Portion 4,506 2,033 4,383 1,022 Unearned Revenues

Total Current Liabilities 178,605 8,479,975 1,015,793 1,580,487

Noncurrent Liabilities:Compensated Absences Payable 18,024 8,130 17,532 4,090 Net Pension Liability 148,514 90,399 150,813 38,633

Total Noncurrent Liabilities 166,538 98,529 168,345 42,723

Total Liabilities 345,143 8,578,504 1,184,138 1,623,210

DEFERRED INFLOWS OF RESOURCESPension Related Items 11,415 7,021 11,598 2,982

Total Deferred Inflows of Resources 11,415 7,021 11,598 2,982

NET POSITIONNet Investment in Capital Assets 6,957,529 8,336,406 3,127,169 Restricted for Low & Moderate HousingRestricted for Community Economic DevelopmentRestricted for Other PurposesUnrestricted 915,903 (8,095,782) (436,286) 314,849

Total Net Position 7,873,432$ 240,624$ 2,690,883$ 314,849$

City of Perris, CaliforniaStatement of Net Position

Proprietary FundsJune 30, 2018

Enterprise FundsBusiness-type Activities


24

Housing PerrisAuthority CEDC Totals

1,741,631$ 3,555,258$ 6,583,532$

1,250 28,350 3,045,914 1,967 5,266 9,147

4,152,325 4,152,325

5,897,173 3,588,874 13,790,918

500,902 801,466 18,120,540

500,902 0 18,922,006

6,398,075 3,588,874 32,712,924

157,824

0 0 157,824

8,412 336,655 2,767,675 8,523,718

296,590 23,648 35,592

28,350 28,350

32,060 365,005 11,651,925

94,594 142,370 428,359

94,594 0 570,729

126,654 365,005 12,222,654

33,016

0 0 33,016

500,902 18,922,006 4,733,610 4,733,610

3,223,869 3,223,869 1,036,909 1,036,909

(7,301,316)

6,271,421$ 3,223,869$ 20,615,078$


25


OPERATING REVENUESCharges for Services 2,016,769$ 974,790$ 2,880,032$ 1,307,824$ Miscellaneous 76,944 39,428

Total Operating Revenues 2,093,713 974,790 2,919,460 1,307,824

OPERATING EXPENSESMaintenance and Operations 236,170 142,922 209,630 57,086 Contractual Services 1,834,477 333,068 2,690,953 1,138,910 Materials and Supplies 14,937 Administrative and General 6,667 100,552 14,495 5,173 Depreciation 252,628 320,359 159,211 Loan Amortization ExpenseCommunity SponsorshipsEconomic DevelopmentMiscellaneous Expense

Total Operating Expenses 2,329,942 896,901 3,089,226 1,201,169

Operating Income (Loss) (236,229) 77,889 (169,766) 106,655

NONOPERATING REVENUES (EXPENSES)

Investment Earnings (749) (182) (1,063) Interest Expense (33,899) (317,500)

Total Nonoperating Revenues(Expenses) (34,648) (317,682) 0 (1,063)

Income before Transfers and Special Items (270,877) (239,793) (169,766) 105,592

Transfers InSpecial Item - Theft Loss (894,677) Special Item - CIP Project Abandonment (397,246) Special Item - Forgiveness of Note Payable 2,331,000

Change in Net Position (270,877) 2,091,207 (567,012) (789,085)

Total Net Position - Beginning 8,144,309 (1,850,583) 3,257,895 1,103,934

Total Net Position - Ending 7,873,432$ 240,624$ 2,690,883$ 314,849$

Proprietary FundsStatement of Revenues, Expenses, and Changes in Net Position

City of Perris, California

Business-type ActivitiesEnterprise Funds



26


293,252$ 78,601$ 7,551,268$ 2,322 118,694

293,252 80,923 7,669,962

645,808 36,219 174,706 6,208,333

14,937 735,178 21,487 883,552

732,198 41,917 41,917 64,940 67,000 131,940

891,929 891,929 40,737 8,175 48,912

918,991 1,163,297 9,599,526

(625,739) (1,082,374) (1,929,564)

2,397 7,731 8,134 (351,399)

2,397 7,731 (343,265)

(623,342) (1,074,643) (2,272,829)

545,987 545,987 (894,677) (397,246)

2,331,000

(77,355) (1,074,643) (687,765)

6,348,776 4,298,512 21,302,843

6,271,421$ 3,223,869$ 20,615,078$


27


CASH FLOWS FROM OPERATING ACTIVITIESCash Received from Customers 2,046,376$ 985,040$ 2,889,889$ 352,375$ Other Payments (894,677) Cash Payments for Employee Services (181,640) (129,383) (194,304) (51,540) Cash Payments to Suppliers for Goods

and Services (1,919,432) (470,207) (2,795,289) (450,479)

Net Cash Provided by (Used for) Operating Activities (54,696) 385,450 (99,704) (1,044,321)

CASH FLOWS FROM NONCAPITALFINANCING ACTIVITIESAdvances from Other Funds 2,217,811 99,704

Net Cash Provided by (Used for) Noncapital Financing Activities 0 2,217,811 99,704 0

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Repayment of Advances from Other Funds (195,988) Principal Payments on Capital Debt (887,049) (2,079,000) Interest Payments on Capital Debt (33,899) (317,500)

Net Cash Provided by (Used for) Capital

and Related Financing Activities (920,948) (2,592,488) 0 0

CASH FLOWS FROM INVESTING ACTIVITIES

Investment Earnings 2,261 188 1,421

Net Cash Provided by (Used for) from Investing Activities 2,261 188 0 1,421

Net Increase (Decrease) in Cash and Cash Equivalents (973,383) 10,961 0 (1,042,900)

Cash and Cash Equivalents - Beginning of the Year, Restated 1,718,427 133,348 0 1,440,190

Cash and Cash Equivalents - End of the Year 745,044$ 144,309$ 0$ 397,290$

Business-type Activities

City of Perris, CaliforniaStatement of Cash Flows

Proprietary FundsYear Ended June 30, 2018

Enterprise Funds


28


872,550$ 75,801$ 7,222,031$ (894,677)

(734,342) (1,291,209)

(137,949) (869,420) (6,642,776)

259 (793,619) (1,606,631)

1,115,320 3,432,835

1,115,320 0 3,432,835

(195,988) (2,966,049)

(351,399)

0 0 (3,513,436)

1,817 12,876 18,563

1,817 12,876 18,563

1,117,396 (780,743) (1,668,669)

624,235 4,336,001 8,252,201

1,741,631$ 3,555,258$ 6,583,532$


29


Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for)

Operating Activities:Operating Income (Loss) (236,229)$ 77,889$ (169,766)$ 106,655$ Adjustments to Reconcile Operating Income to Net Cash Provided by

Operating Activities:Depreciation 252,628 320,359 159,211Other Payments (894,677)

Changes in Assets and Liabilities:Accounts and Other Receivables

(Increase) Decrease (47,337) (6,440) (44,429) (955,449)Loans Receivables (Increase) DecreasePension Related Deferred Outflows of

Resources (Increase) Decrease (6,068) (3,138) (5,835) (2,028)Accounts Payable and Accrued Liabilities

Increase (Decrease) (43,265) (35,686) (77,833) 693,202Deposits Increase (Decrease) 17,125 15,293Net Pension Liability Increase (Decrease) 23,061 12,091 22,163 6,670Unearned Revenues Increase (Decrease) (435) (435)Compensated Absences Payable

Increase (Decrease) 1,160 3,052 545 898Pension Related Deferred Inflows of

Resources Increase (Decrease) 1,354 633 1,382 408

TOTAL CASH PROVIDED BY (USED FOR)OPERATING ACTIVITIES (54,696)$ 385,450$ (99,704)$ (1,044,321)$

Schedule of Non-cash Capital and Related Financing Activities:

CIP Project Abandonment 397,246$ Note Payable Forgiveness 2,331,000$

Enterprise FundsBusiness-type Activities

City of Perris, CaliforniaStatement of Cash Flows - Continued

Proprietary FundsYear Ended June 30, 2018


30


(625,739)$ (1,082,374)$ (1,929,564)$

732,198(894,677)

(1,250) (18,225) (1,073,130)622,465 622,465

(17,069)

3,947 293,877 834,24232,41863,985

13,103 12,233

836 6,491

3,777

259$ (793,619)$ (1,606,631)$

397,246$ 2,331,000$


31

Successor AgencyPrivate-purpose

Trust Fund Agency FundsASSETS

Cash and Investments 4,125,316$ 9,436,021$ Cash and Investments with Fiscal Agent 10,626,089 Receivables:

Assessments 243,971 Interest 4,171 8,721 Loans 781,370 Other 10,663 158,967

Deposits with Other Agencies 6,285,026 11,295,773 Land Held for Development 1,820,940 Land 335,048

Total Assets 13,362,534 31,769,542

DEFERRED OUTFLOWS OF RESOURCESDeferred Charges on Refunding 954,634

Total Deferred Outflows of Resources 954,634 0

LIABILITIESAccounts Payable and Accrued Liabilities 428,516 Deposits 1,083,692 Interest Payable 746,995 Due to Other Government Agencies 459,434 Advances from Other Funds 48,289 Loans Payable 65,988,588 Due to Bondholders 30,257,334

Total Liabilities 67,243,306 31,769,542$

NET POSITIONNet Position Held in Trust for Redevelopment (Deficit) (52,926,138)

Total Net Position (52,926,138)$

City of Perris, CaliforniaStatement of Fiduciary Net Position

Fiduciary FundsJune 30, 2018

The accompanying notes are an integral part of this statement.32

Successor AgencyPrivate-purpose

Trust FundADDITIONS

Taxes 5,238,654$ Investment Earnings 115,026

Total Additions 5,353,680

DEDUCTIONSAdministration 252,343 Contributions to Other Governments 182,956 Interest Expense 3,055,356

Total Deductions 3,490,655

Change in Net Position 1,863,025

Net Position - Beginning of Year (54,789,163)

Net Position - End of Year (52,926,138)$

City of Perris, CaliforniaStatement of Changes in Fiduciary Net Position

Fiduciary FundsYear Ended June 30, 2018

The accompanying notes are an integral part of this statement.33

City of Perris, California Notes to Financial Statements

June 30, 2018

34

NOTE DESCRIPTION PAGE 1 Reporting Entity and Summary of Significant Accounting Policies 35 - 47 2 Cash and Investments 48 - 52 3 Fair Value Measurement 52 - 53 4 Loans Receivable 54 5 Capital Assets 54 - 56 6 Long-term Liabilities 56 - 63 7 Compensated Absences 64 8 Assessment District and Community Facilities District Bonds 64 - 65 9 Single Family Mortgage Revenue Bonds 65 10 Inter-fund Receivables, Payables and Transfers 66 - 67 11 Net Position and Fund Balance 67 - 69 12 Other Required Individual Fund Disclosures 70 13 City Employees’ Retirement Plan (Defined Benefit Pension Plan) 70 - 76 14 Other Post Employment Benefits 76 - 80 15 Tax Abatements 80 16 Joint Venture 81 17 Risk Management 81 - 82 18 Commitments and Contingencies 82 19 Successor Agency Trust for Assets of Former Redevelopment Agency 82 - 84 20 Subsequent Events 84 21 Prior Period Adjustments 84 22 Special Items 84


June 30, 2018

35

1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A) Reporting Entity The City of Perris (the “City”) was incorporated in 1911 as a General Law City. The City operates under a Council -

Manager form of government, and provides the following services: general administrative services; public safety services; highway and street repairs and maintenance; water, sanitation, and sewer services.

The financial statements of the City of Perris include the financial activities of the City, the Perris Public Utility

Authority, the Perris Public Financing Authority, the Perris Housing Authority, the Perris Joint Powers Authority and Perris Community Economic Development Corporation. In accordance with GASB, the basic criteria for including an agency, institution, authority or other organization in a governmental unit's financial reporting entity is financial accountability. Financial accountability includes, but is not limited to 1) selection of the governing body, 2) imposition of will, 3) ability to provide a financial benefit to or impose financial burden on and 4) fiscal dependency.

There may, however, be factors other than financial accountability that are so significant that exclusion of a particular

agency from a reporting entity's financial statements would be misleading. These other factors include scope of public service and special financing relationships.

Based upon the application of these criteria, an agency, institution or authority, may be included as a component unit in

the primary government's financial statements. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. A discretely presented component unit, on the other hand, is reported in a separate column in the combined financial statements to emphasize it is legally separate from the government. All the component units are blended in these financial statements. The governing bodies of these component units are comprised of the City Council and the services they provide almost exclusively benefits the City of Perris. The City’s management oversees the operations of all component units in the same manner as the City. The Perris Community Economic Development Corporation is a nonprofit public benefit Corporation which the City is the sole corporate member. Each component unit presented has a June 30 year end. The following is a brief review of each component unit included in the primary government's reporting entity.

The Perris Public Utility Authority The City of Perris (City) and the Perris Redevelopment Agency (Agency) formed a Joint Powers Authority, pursuant to

a Joint Exercise of Powers Agreement, dated as of December 29, 1999, by and between the Agency and the City. The Perris Public Utility Authority (Utility Authority) was created to assist the City in its financing objectives by purchasing and operating the Sewer and Water systems from the City. The governing body of the Utility Authority is comprised of the City Council. On February 1, 2012, the Perris Redevelopment Agency was dissolved.

The City and the Utility Authority entered into a “Purchase Agreement”, dated March 16, 2000, to sell the Sewer and

Water Enterprise from the City to the Utility Authority. The sale price was based upon the completion of an appraisal of the Enterprise, which was not completed until November 2000. On August 28, 2001, the original purchase agreement was rescinded and replaced by a new purchase agreement. This agreement was subsequently rescinded on February 12, 2002. Therefore transactions related to the sale have not been enacted nor are they presented in these financial statements. The Utility Authority in December 2008, purchased the McCanna Ranch Water Company. The Utility Authority’s activities are blended with those of City in these financial statements and are reported as an enterprise fund. A component unit financial statement may be obtained at 101 North D Street, Perris, California 92507.


June 30, 2018

36

1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A) Reporting Entity - Continued The Perris Public Financing Authority The Perris Public Financing Authority (the “Financing Authority”) is a joint powers authority organized pursuant to the

State of California Government Code, Section 6500. The Financing Authority exists under a Joint Exercise of Power Agreement dated August 28, 1989, between the City of Perris and the Perris Redevelopment Agency. Its purpose is to facilitate financing for public capital improvements of the City and the Agency. The Financing Authority’s activities are blended with those of the City in these financial statements and are reported as a debt service fund. On February 1, 2012, the Perris Redevelopment Agency was dissolved. A component unit financial statement may be obtained at 101 North D Street, Perris, California 92570.

The Perris Housing Authority

The Perris Housing Authority (Housing Authority) was formed on March 29, 2011 and operates as a public authority whose primary goal is to provide decent, safe and sanitary housing in a suitable living environment for families that cannot afford private housing that comply with housing quality standards. A component unit financial statement may be obtained at 101 North D Street, Perris, California 92570. The Perris Joint Powers Authority

The Perris Joint Powers Authority (the “Authority”) is a joint exercise of powers between the City of Perris (the “City”)

and the Perris Housing Authority (the “Authority”), created by a joint powers agreement dated March 26, 2013. The purpose of the Authority is to provide financing for public capital improvements and other programs within the City. A component unit financial statement may be obtained at 101 North D Street, Perris, California 92570.

The Perris Community Economic Development Corporation The Perris Community Economic Development Corporation (the “Perris CEDC”) was incorporated on April 16, 2014.

The Corporation was formed as a nonprofit public benefit corporation under Section 501(c)(3) of the Internal Revenue Code. The specific and primary purpose of this corporation is to provide physical, economic, and educational development and revitalization efforts resulting in expanded employment, economic prosperity and, business and housing opportunities, for businesses and residents to provide such services that are associated with such specific purpose as allowed by the law. The governing body of the Perris CEDC is comprised of the City Council. Upon dissolution, any assets remaining shall be distributed to the City of Perris or a designated nonprofit fund, foundation or corporation by the governing body. A component unit financial statement may be obtained at 101 North D Street, Perris, California 92570.


June 30, 2018

37

1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B) Implementation of Governmental Accounting Standards Board (GASB) Pronouncements

Governmental Accounting Standard Board Statement No. 75 In June of 2015, GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This Statement was issued to improve accounting and financial reporting for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by governmental employers about financial support for OPEB that is provided by other entities. This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB plans. Statement No. 75 is effective for fiscal years beginning after June 15, 2017. The City has implemented GASB No. 75 which is reflected on the City’s financial statements. Governmental Accounting Standard Board Statement No. 81 In March of 2016, GASB issued Statement No. 81, Irrevocable Split Interest Agreements. This statement was issued to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. Split-interest agreements are a type of giving agreement used by donors to provide resources to two or more beneficiaries, including governments. Split-interest agreements can be created through trusts—or other legally enforceable agreements with characteristics that are equivalent to split-interest agreements—in which a donor transfers resources to an intermediary to hold and administer for the benefit of a government and at least one other beneficiary. This Statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. Furthermore, this Statement requires that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interests. This Statement requires that a government recognize revenue when the resources become applicable to the reporting period. The requirements of this Statement are effective for reporting periods beginning after December 15, 2016. Currently, this statement has no material effect on the City’s financial statements. Governmental Accounting Standard Board Statement No. 83 In November of 2016, GASB issued Statement No. 83, Certain Asset Retirement Obligations. This Statement was issued to address the criteria for the recognition and measurement of the liability and corresponding deferred outflows of resources associated with certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. Statement No. 83 is effective for reporting periods beginning after June 15, 2018. The impact of the implementation of this Statement to the City’s financial statements has not been assessed at this time.


June 30, 2018

38

1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B) Implementation of Governmental Accounting Standards Board (GASB) Pronouncements - Continued

Governmental Accounting Standard Board Statement No. 84 In January of 2017, GASB issued Statement No. 84, Fiduciary Activities. This Statement was issued to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes. This Statement establishes the criteria for identifying fiduciary activities which should be reported in a fiduciary fund in the basic financial statements. The fiduciary funds that should be reported, if applicable: a) pensions trust funds, b) investment trust funds, c) private purpose trust funds, d) custodial funds. Statement No. 84 is effective for reporting periods beginning after December 15, 2018. The impact of the implementation of this Statement to the City’s financial statements has not been assessed at this time. Governmental Accounting Standard Board Statement No. 85 In March of 2017, GASB issued Statement No. 85, Omnibus 2017. This Statement addresses practice issues that have risen from the implementation of certain GASB Statements; primarily pension and OPEB related measurement, recognition, timing, and reporting issues. Other issues include blending of component units for governments whose primary activity is business-type, goodwill reporting, classifying real estate held by insurance entities and measuring particular investments at amortized cost. This Statement is effective for reporting periods beginning after June 15, 2017. The City has implemented GASB No. 85 which is reflected in the City’s Financial Statements. Governmental Accounting Standard Board Statement No. 86 In May of 2017, GASB issued Statement No. 86, Certain Debt Extinguishment Issues. This Statement expands upon GASB No. 7 Advance Refundings Resulting in Defeasance of Debt which defines debt defeased in substance and the criteria for the trusts used to extinguish debt. This Statement establishes essentially the same requirements for when a government places cash and other monetary assets acquired with only existing resources in an irrevocable trust to extinguish the debt. This Statement is effective for reporting periods beginning after June 15, 2017. The City has implemented GASB No. 86 which is reflected in the City’s financial statements. Governmental Accounting Standard Board Statement No. 87 In June of 2017, GASB issued Statement No. 87, Leases. The intent of this Statement is to improve accounting and financial reporting for government leases by requiring recognition of certain lease assets and liabilities for leases that were previously classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. This Statement establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. This Statement is effective for reporting periods beginning after December 15, 2019. The impact of the implementation of this Statement to the City’s financial statements has not been assessed at this time.


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1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B) Implementation of Governmental Accounting Standards Board (GASB) Pronouncements - Continued

Governmental Accounting Standard Board Statement No. 88 In March of 2018, GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. This Statement was issued to improve the information that is disclosed in the notes to government financial statements related to debt, including direct borrowings and direct placements. This Statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective acceleration clauses. Statement No. 88 is effective for fiscal years beginning after June 15, 2018. The impact of the implementation of this Statement to the City’s financial statements has not been assessed at this time. Governmental Accounting Standard Board Statement No. 89 In June of 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement was issued to (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. Statement No. 89 is effective for fiscal years beginning after December 15, 2019. The impact of the implementation of this Statement to the City’s financial statements has not been assessed at this time. Governmental Accounting Standard Board Statement No. 90 In August of 2018, GASB issued Statement No. 90, Majority Equity Interests, an amendment of GASB Statements No. 14 and No. 61. This Statement was issued to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. This Statement defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government's holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. Statement No. 90 is effective for fiscal years beginning after December 15, 2018. The impact of the implementation of this Statement to the City’s financial statements has not been assessed at this time.


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1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

C) Basis of Presentation

The basic financial statements of the City of Perris have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for governmental accounting and financial reporting purposes.

These statements require that the financial statements described below be presented:

Government-wide Statements: The Government-wide financial statements (i.e., the Statement of Net Position and the

Statement of Activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are

offset by program revenues. Direct expenses are expenses that are clearly identifiable with a specific program, project, function or segment. Program revenues of the City include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.

Taxes and other items that are properly not included among program revenues are reported instead as general revenues. Fund Financial Statements: Separate financial statements are provided for governmental funds, proprietary funds, and

fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. All remaining governmental funds are aggregated and reported as non-major funds.

D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the

accrual basis of accounting, as are the proprietary fund, private-purpose trust funds and fiduciary fund financial statements except for agency funds which have no measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are

recognized as revenue as soon as all eligibility requirements imposed by the providers have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the

modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgements, are recorded only when payment is due.


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D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued

Taxes, intergovernmental revenues, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual, and are therefore recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.

The City reports the following major governmental funds:

The General Fund is used to account for all financial resources of the City, except for those required to be accounted for in another fund.

The Public Financing Authority Debt Service Fund is used to account for the accumulation of resources for, and

the repayment of, long-term debt principal, interest and related costs of the Authority. The Joint Powers Authority Debt Service Fund is used to provide financing and account for the accumulation of

resources for, and the repayment of long-term debt principal, interests and related costs for capital improvements and other programs within the City.

The Road and Bridge Benefit District Special Revenue Fund is used to account for funds received from assessment

and developer fees, and, the expenditures for the maintenance and improvements of roads and bridges. The Storm Drain Development Capital Project Fund is used to account for the capital improvements of upgrading

the storm drains within the City.

The Capital Improvement Projects Capital Project Fund is used to account for miscellaneous improvement projects which are financed primarily from developer contributions and transportation uniform mitigation fees.

The City reports the following major proprietary funds: The Sewer Utility accounts for the activities of the City’s sewer utility distribution operations. The Public Utility Authority accounts for the water and wastewater activities of McCanna Ranch area. The Water Utility accounts for the activities of the City's water utility distribution operations. The Solid Waste Utility accounts for the activities of the City’s solid waste utility distribution operations. The Housing Authority, accounts for the activities of the City’s housing operations. The Perris Community Economic Development Corporation (CEDC) accounts for the activities of the City’s

nonprofit public benefit Corporation.


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Additionally, the City reports the following fund types:

The Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Revenues are fully accrued to include unbilled services at year end.

The Fiduciary Funds are used to account for resources held in the benefit of parties outside of the government.

Fiduciary funds are not reported in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used by the fiduciary funds is much like that used for proprietary funds.

The City reports the following activities: The Private-purpose Trust Fund is used to report resources held in trust for the Successor Agency to the Perris

Redevelopment Agency. The Agency Funds are used to account for money received by the City as an agent for individuals, other

1) The City receives deposits from other organizations or private individuals in a custodial nature.

2) Special taxes and assessments are receipted to the City to make principal and interest payments for Community Facilities Districts bonds. The City has no obligations to these debt issues.

The City applies all applicable GASB pronouncements in accounting and reporting for its proprietary operations. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements.

Exceptions to this general rule are interfund services provided and used. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Direct expenses have not been eliminated from the functional categories; indirect expenses and internal payments have been eliminated.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges

provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.


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Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources

first, and then use unrestricted resources as they are needed. E) Encumbrances Encumbrance accounting under which purchase orders, contracts and other commitments for the expenditure of monies

are recorded in order to reserve that portion of the applicable appropriations is employed as an extension of formal budgetary integration in all governmental funds. Unencumbered appropriations of the governmental funds automatically lapse at year end.

F) Investments As a governmental entity other than an external investment pool in accordance with GASB 31, the City's investments

are stated at fair value. In applying GASB 31, the City utilized the following methods and assumptions:

1) Fair value is based on quoted market prices as of the valuation date;

2) The portfolio did not hold investments in any of the following: a) Items required to be reported at amortized cost, b) Items in external pools that are not SEC-registered, c) Items subject to involuntary participation in an external pool, d) Items associated with a fund other than the fund to which the income is assigned; 3) Aside from investments clearly identified as belonging to a specific fund, any unrealized gain/loss resulting from

the valuation will be recognized within the General Fund to the extent its cash and investments' balance exceeds the cumulative value of those investments subject to GASB 31;

4) The gain/loss resulting from valuation will be reported within the revenue account "investment earnings" on the

Statement of Activities and the Statement of Revenues, Expenditures and Changes in Fund Balance for Governmental Funds. For Proprietary Fund Types the gain/loss from valuation will be reported within the “investment earnings” account on the Statement of Activities and the Statement of Revenues, Expenses and Changes in Net Position for Proprietary Funds.


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1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued G) Capital Assets

Capital assets, which include land, buildings, building improvements, machinery, vehicles, and infrastructure assets, are reported in the government-wide financial statements. Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Capital assets purchased in excess of $5,000, and buildings and building improvements purchased in excess of $20,000 are capitalized if they have an expected useful life of 2 years or more. Infrastructure is capitalized if cost is in excess of $50,000 and it has an expected useful life of 2 years or more. The cost of normal maintenance and repairs that do not add to the value of the asset’s lives are not capitalized. Major capital outlay for capital assets and improvements are capitalized as projects are constructed. For debt-financed capital assets, interest incurred during the construction phase is reflected in the capitalization value of the asset constructed, net of interest earned on the invested proceeds over the same period. Capital assets acquired through lease obligations are valued at the present value of future lease payments at the date acquired. Donated capital assets are valued at their estimated acquisition value rather than fair market value at the date of donation. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements and in the fund financial statements of the proprietary funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The range of lives used for depreciation purposes for each capital asset class is as follows:

Buildings 30 - 45 yearsBuilding Improvements 7 - 30 yearsMachinery 6 - 15 yearsVehicles 5 - 15 yearsInfrastructure 20 - 40 yearsStructures and Improvements 35 - 40 yearsReservoirs and Manholes 50 - 60 yearsBoosters 25 yearsOther Equipment and Services 35 - 60 years

H) Appropriations Limit Under Article XIIIB of the California Constitution (the GANN Spending Limitation Initiative), the City is restricted as

to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or other refund arrangements. For the fiscal year ended June 30, 2018, proceeds of taxes did not exceed appropriations.

I) Fund Equity Fund balance in governmental funds are reported in classifications that comprise a hierarchy based primarily on the

extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The City considers restricted fund balance to have been spent first when an expenditure is incurred for


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1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued I) Fund Equity - Continued purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is

incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

Nonspendable Fund Balance - Includes amounts that cannot be spent because they are either not in spendable form,

or, for legal or contractual reasons, must be kept intact. Restricted Fund Balance - Constraints placed on the use of these resources are either externally imposed by creditors

(such as through debt covenants), grantors, contributors or other governments; or are imposed by law (through constitutional provisions or enabling legislation).

Committed Fund Balance - Amounts that can only be used for specific purposes because of a formal action

(ordinance) by the government's highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken to remove or revise the limitation.

Assigned Fund Balance - Amounts that are constrained by the City’s intent to be used for specific purposes, but that

do not meet the criteria to be classified as restricted or committed. Intent can be stipulated by the governing body, another body, or by an official to whom the authority has been given. The City Council has by resolution authorized the Finance Director to assign fund balance. The City Council may also assign fund balance, however, unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment.

Unassigned Fund Balance - These are either residual positive net resources of the General Fund in excess of what

can properly be classified in one of the other categories, or negative balances in all other funds.

J) General Fund Minimum Reserve Policy The City adopted a policy to commit to a General Fund Minimum Reserve amount consisting of 35% of the projected

budgeted revenues for any given fiscal year for specific uses such as economic uncertainty, declaration of a local, state or federal emergency/disaster, or another other emergency expenditure deemed appropriate by the City Council. This commitment can only be modified or removed by an action of the City Council. The current year reserve is $16,330,334.

K) Use of Estimates

The financial statements have been prepared in accordance with accounting principles generally accepted in the United

States of America and necessarily include amounts based on estimates and assumptions by Management. Actual results could differ from those amounts.


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L) Cash and Cash Equivalents

For purposes of the Statement of Cash Flows, the City considers all cash and investments with original maturities of 90 days or less to be cash or cash equivalents. In addition, cash invested in the City's cash management pool is considered to be cash equivalents.

M) Inter-fund Activity

In the governmental fund financial statements, activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of inter-fund loans) or “advances to/from other funds” (i.e., the noncurrent portion of inter-fund loans). All other outstanding balances between funds are reported as “due to/from other funds.”

Noncurrent portions of long-term inter-fund loan receivables are reported as advances and such amounts are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation.

In the government-wide financial statements, these activities have been eliminated. N) Property Taxes

Property taxes are attached as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are

payable in two installments on November 1 and February 1. Such taxes are delinquent on December 10 and April 10, respectively. Any unpaid amounts at the end of the fiscal year are recorded as accounts receivable. The County of Riverside bills and collects the property taxes and subsequently remits the amount due to the City in installments during the year. Historically, the City has received substantially all of the taxes levied within two years from the date they are levied.

The County is permitted by State Law (Article XIIIB of the California Constitution) to levy taxes at one percent (1%) of full market value (at time of purchase) and can increase the property's value no more than two percent (2%) per year. The City receives a share of this basic levy proportionate to what it received in the 1976 to 1978 period.

O) Pensions

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions,

and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.


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P) Other Postemployment Benefits (OPEB) For purposes of measuring the net OPEB liability (asset), deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to lability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date July 1, 2017 Measurement Date June 30, 2018 Measurement Period July 1, 2017 to June 30, 2018

Q) Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of

resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expenses/expenditure) until then. The City has two items that qualifies for reporting in this category. The City has deferred outflows related to pensions, which arises only under a full accrual basis of accounting. Accordingly, this item (pension related items), is reported only in the government-wide statement of net position. This includes pension contributions subsequent to the measurement date of the net pension liability and other amounts (see Note 13), which are amortized by an actuarial determined period. The City also has deferred charges on refunding (net) that resulted from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows

of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two types of deferred inflows of resources. One item arises only under a modified accrual basis of accounting. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, interest and intergovernmental revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City also has deferred inflows of resources related to pensions, which arises only under a full accrual basis of accounting. Accordingly, this item (pension related items), is reported only in the government-wide statement of net position. These amounts (see Note 13) are amortized by an actuarial determined period.


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2) CASH AND INVESTMENTS Cash and Investments are classified in the accompanying financial statements as follows:

Statement of Net Position: Primary Government Cash and Investments $ 156,534,908 Restricted Cash and Investments 151,960,488Statement of Fiduciary Assets and Liabilities: Cash and Investments 13,561,337 Cash and Investments with Fiscal Agent 10,626,089 Total Cash and Investments $ 332,682,822

Cash and Investments consist of the following:

Petty Cash $ 2,100Deposits with Financial Institutions 23,691,924Investments 308,988,798 Total Cash and Investments $ 332,682,822

Investments Authorized by the California Government Code and the City’s Investment Policy

The table below identifies the investment types that are authorized for the City by the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity (1) Of Portfolio(2) In One Issuer Local Agency Bonds 5 years 10% None U.S. Treasury Obligations 5 years None None U.S. Agency (Federal) Securities 5 years None None Banker’s Acceptances 180 days 40% of market value 5% Commercial Paper 270 days 25% of market value 5% Negotiable Certificates of Deposit 5 years 30% None Repurchase Agreements 92 days 20% None Mutual Funds N/A 20% 10% Money Market Mutual Funds N/A 20% 10% Local Agency Investment Fund (LAIF) N/A 80% None Bank / Time Deposits 5 years 30% None (1) No more than 50% of the portfolio shall have maturity dates in excess of 2 years at any given time. (2) Excluding amounts held by bond trustee that are not subject to California Government Code Restrictions.


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2) CASH AND INVESTMENTS - Continued Investments Authorized by Debt Agreements

Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. In accordance with its investment policy, one of the ways that the City manages its exposure to interest rates risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Remaining Maturity (in Months) 12 Months 13 to 24 25 to 60 More Than

Investment Type Or Less Months Months 60 Months Local Agency Bonds $ 1,466,385 $ 1,466,385 $ $ $ Federal Agency Securities 64,513,864 15,937,618 21,114,726 27,461,520 U.S. Treasury Bills 28,719,413 5,756,220 7,655,328 15,307,865 Commercial Paper 1,418,660 1,418,660 Certificates of Deposit 2,481,104 1,999,860 481,244 Money Market Fund 44,372,682 44,372,682 State Investment Pool - LAIF 3,430,113 3,430,113 Held By Bond Trustee: Money Market Fund 31,419,297 31,419,297 Local Obligation Bonds 131,167,280 6,150,849 6,184,388 17,507,629 101,324,414 Total $ 308,988,798 $ 111,951,684 $ 34,954,442 $ 60,758,258 $101,324,414

Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the

investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.


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2) CASH AND INVESTMENTS - Continued

Disclosures Relating to Credit Risk - Continued

Presented below is the minimum rating required by (where applicable) the California Government Code or the City’s investment policy and the actual rating as of year end for each investment type.

Minimum Exempt Rating as of Year End Legal From Not Rating Disclosure AAA P-1 AA Rated Local Agency Bonds $ 1,466,385 A $ $ $ $ 1,466,385 $ Federal Agency Securities 64,513,864 N/A 38,220,997 26,292,867 U.S. Treasury Bills 28,719,413 N/A 28,719,413 Commercial Paper 1,418,660 A 1,418,660 Certificates of Deposit 2,481,104 N/A 1,999,860 481,244Money Market Fund 44,372,682 N/A 3,325,030 41,047,652State Investment Pool - LAIF 3,430,113 N/A 3,430,113Held By Bond Trustee: Money Market Fund 31,419,297 N/A 31,419,297 Local Obligation Bonds 131,167,280 N/A 131,167,280 Total $ 308,988,798 $ 0 $101,684,737 $ 3,418,520 $ 27,759,252 $176,126,289

Concentration of Credit Risk Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that

represent 5% or more of total City’s investments are as follows:

Issuer Investment Type Reported Amount Federal Home Loan Mortgage Corporation Federal Agency Securities $ 20,843,127 Federal Home Loan Bank Federal Agency Securities $ 16,900,910 Federal National Mortgage Association Federal Agency Securities $ 16,026,758 First American Prime Obligations Fund Money Market Fund $ 31,419,342 Citizens Business Bank Money Market Fund $ 40,556,969 CFD 2002-2 Special Tax Bonds (IA4 and IA5), 2017 Series Local Obligation Bonds $ 24,075,786

Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government

will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.


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2) CASH AND INVESTMENTS - Continued

Custodial Credit Risk - Continued As of June 30, 2018, $23,440,472 of the City’s deposits with financial institutions in excess of federal depository insurance

limits were held in collateralized accounts, and none of the City’s investments were held by the broker-dealer (counterparty) that was used by the City to buy the securities.

Local Agency Investment Fund (LAIF) The LAIF is a special fund of the California State Treasury through which local governments may pool investments. The

City may invest up to $65,000,000 in the fund for the City and $65,000,000 for each eligible component unit. Investments in LAIF are highly liquid, as deposits can be converted to cash within twenty-four hours without loss of interest. Investments with LAIF are secured by the full faith and credit of the State of California. The yield of LAIF during the quarter ended June 30, 2018 was 1.90%. The carrying value and estimated market value of the LAIF Pool at June 30, 2018 was $88,813,999,646 and $88,798,232,977, respectively. The City's share of the Pool at June 30, 2018 was approximately 0.0039 percent.

The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based

upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are certain derivative securities or similar products in the form of asset-backed securities totaling $1,549,080,000 and structured notes totaling $825,000,000. LAIF's and the City's exposure to risk (credit, market or legal) is not currently available.

The LAIF has oversight by the Local Investment Advisory Board. The LAIF Board consists of five members as designated

by Statute. LAIF is also regulated by California Government Code Section 16429. Investment in Bonds The Perris Public Financing Authority and the Perris Joint Powers Authority has purchased various Assessment District

(AD) and Community Facilities District (CFD) Bonds from the proceeds of revenue bonds issued to facilitate the respective bond issues of the Districts. Due to the long-term nature of these investments, a portion of fund balance has been reserved in the Governmental Fund Financial Statements.

The CFD and Assessment District Bonds are secured solely by assessments on property owners within the Districts. The

repayment schedules of the bonds, and interest thereon, to the above component units are concurrent and sufficient to satisfy the debt service requirements of the respective revenue bonds.


June 30, 2018

52

2) CASH AND INVESTMENTS - Continued Investment in Bonds - Continued The CFD and Assessment District Bonds investments are summarized below.

Investment Fair Value CFDs 88-1, 88-3 and 90-1 Special Tax Bonds, 2007 Series A and B $ 2,849,735CFD 2002-1 Refunding Special Tax Bonds, 2013 Series 4,830,098CFD 2001-1 Special Tax Bonds (IA1, IA2 and IA3), 2014 Refunding Bonds 10,304,727CFD 2006-1 Special Tax Bonds, 2014 Refunding Bonds 2,355,536CFD 2004-3 Special Tax Refunding Bonds (IA1), 2014 Series 7,231,139CFD 2004-2 Special Tax Refunding Bonds, 2014 Series 4,283,227CFD 2001-1 Special Tax Refunding Bonds (IA6 and IA7), 2014 Series 12,510,843CFD 2004-1 Special Tax Refunding Bonds, 2014 Series A 2,133,130CFD 2003-1 Special Tax Refunding Bonds, 2014 Series 3,153,792CFD 2005-2 Special Tax Refunding Bonds 2015 Series 13,166,381CFD 2006-2 Special Tax Refunding Bonds 2015 Series 9,158,422CFD 2004-3 Special Tax Refunding Bonds (IA2), 2015 Series 7,864,046CFD 2014-2 Special Tax Refunding Bonds 2015 Series 2,287,043CFD 2005-1 Special Tax Refunding Bonds (IA3), 2015 Series 4,493,978CFD 2005-4 Special Tax Refunding Bonds, 2015 Series 5,559,350CFD 2005-4 Special Tax Bonds, 2015 Series 2,719,892CFD 2014-1 Special Tax Bonds, 2017 Series 4,139,523CFD 2001-1 Special Tax Bonds (IA4 and IA5), 2017 Series 24,075,786CFD 93-1 and 2004-5 Special Tax Refunding Bonds, 2017 Series 3,865,861CFD 2014-1 Special Tax Bonds (IA2), 2018 Series 4,184,771 $ 131,167,280

Cash and Investments with Fiscal Agent Included in cash and investments with fiscal agent are the debt securities issued by some of the City’s Assessment Districts

and Community Facilities Districts. These are special assessment obligations and, therefore, are not obligations of the Perris Public Financing Authority, Perris Joint Powers Authority or the City.

3) FAIR VALUE MEASUREMENTS

Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurements and Application, provides the framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value with Level 1 given the highest priority and Level 3 the lowest priority. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the organization has the ability to access at the measurement date.


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53

3) FAIR VALUE MEASUREMENTS - Continued

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following:

a. Quoted prices for similar assets or liabilities in active markets.

b. Quoted prices for identical or similar assets or liabilities in markets that are not active.

c. Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield

curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).

d. Inputs that are derived principally from or corroborated by observable market data by correlation or other means

(market-corroborated inputs).

Level 3 inputs are unobservable inputs for the asset or liability.

Fair value of assets measured on a recurring basis at June 30, 2018, are as follows:

Significant Other Observable Inputs Fair Value (Level 2) Uncategorized Local Agency Bonds $ 1,466,385 $ 1,466,385 $ Federal Agency Securities 64,513,864 64,513,864 U.S. Treasury Bills 28,719,413 28,719,413 Commercial Paper 1,418,660 1,418,660 Certificates of Deposit 2,481,104 2,481,104 Money Market Fund 44,372,682 44,372,682State Investment Pool - LAIF 3,430,113 3,430,113Held by Bond Trustees Money Market Fund 31,419,297 31,419,297 Local Obligation Bonds 131,167,280 131,167,280 Total $ 308,988,798 $ 229,766,706 $ 79,222,092

Fair values for investments are determined by using a matrix pricing technique. Matrix pricing is used to value securities based on the security’s relationship to benchmark quoted prices. Uncategorized investments do not fall under the fair value hierarchy as there is no active market for the investments. Land held for development was acquired for the purpose of redevelopment rather than for income and profit. Therefore, land held for development is exempt under GASB 72 fair value measurements.


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54

4) LOANS RECEIVABLE

The Perris Public Financing Authority has entered into loan agreements with the Perris Redevelopment Agency (Agency) whereby the Authority loaned the proceeds of the 2009 Series A, B and C Revenue Bonds, the 2010 Series A Revenue Bond and the 2015 Series A and B Revenue Refunding Bonds issued by the Authority to retire debt and provide funds for certain public improvements in Agency project areas. As of February 1, 2012, the Perris Redevelopment Agency was dissolved (see Note 1) and the Successor Agency of the Perris Redevelopment Agency oversees the remaining activities of the former Perris Redevelopment Agency. The balance of these loans is $63,570,000 as of June 30, 2018. The Authority retained $6,285,026 to fund reserve accounts for the above related debt issues.

5) CAPITAL ASSETS Capital asset activity for the year was as follows:

Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Depreciated: Land $ 39,856,214 $ $ $ 39,856,214 Construction in Progress 17,000,117 13,122,701 1,337,000 28,785,818 Total Capital Assets Not Depreciated

56,856,331

13,122,701

1,337,000

68,642,032

Capital Assets Being Depreciated: Buildings 23,346,027 751,175 24,097,202 Building Improvements 8,691,591 233,010 8,924,601 Machinery 2,464,168 70,039 2,534,207 Vehicles 2,492,406 278,243 2,770,649 Infrastructure 273,330,864 3,701,635 277,032,499 Total Capital Assets Being Depreciated

310,325,056

5,034,102

0

315,359,158

Less Accumulated Depreciation: Buildings (6,863,866) (567,783) (7,431,649) Building Improvements (4,376,287) (393,679) (4,769,966) Machinery (1,847,489) (221,447) (2,068,936) Vehicles (1,821,823) (170,944) (1,992,767) Infrastructure (171,941,888) (6,363,270) (178,305,158)

Total Accumulated Depreciation (186,851,353) (7,717,123) 0 (194,568,476) Total Capital Assets Being Depreciated, Net

123,473,703

(2,683,021)

0

120,790,682

Governmental Activities Capital Assets, Net of Depreciation

$ 180,330,034

$ 10,439,680

$ 1,337,000

$ 189,432,714


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55

5) CAPITAL ASSETS - Continued Depreciation expense was charged to functions/programs as follows:

Governmental Activities: General Government $ 378,538 Public Safety 243,579 Public Works 6,487,317 Parks and Recreation 607,689 Total Depreciation Expense - Governmental Activities $ 7,717,123

Beginning Ending Balance Increases Decreases Balance Business-type Activities: Capital Assets, Not Depreciated: Land $ 801,466 $ $ $ 801,466 Construction in Progress 397,247 397,247 (1) 0 Total Capital Assets Not Depreciated

1,198,713

0

397,247

801,466

Capital Assets Being Depreciated: Major Equipment 542,732 542,732 Structures and Improvements 315,186 315,186 Boosters 35,845 35,845 Reservoirs 2,068,567 2,068,567 Mains 19,321,485 19,321,485 Services 2,429,776 2,429,776 Meters 1,405,617 1,405,617 Hydrants 1,271,892 1,271,892 Manholes 885,458 885,458 Wells 996,071 996,071 Vehicles 105,079 105,079 Total Capital Assets Being Depreciated

29,377,708

0

0

29,377,708

Less Accumulated Depreciation: Major Equipment (247,466) (27,342) (274,808) Structures and Improvements (102,778) (7,371) (110,149) Boosters (35,845) (35,845) Reservoirs (640,512) (44,945) (685,457) Mains (6,547,966) (461,599) (7,009,565) Services (1,087,180) (71,607) (1,158,787) Meters (599,527) (41,088) (640,615) Hydrants (596,469) (32,127) (628,596) Manholes (321,115) (17,660) (338,775) Wells (241,033) (28,459) (269,492) Vehicles(1) (105,079) (105,079)

Total Accumulated Depreciation (10,524,970) (732,198) 0 (11,257,168) Total Capital Assets Being Depreciated, Net

18,852,738

(732,198)

0

18,120,540

Business-type Activities Capital Assets, Net of Depreciation

$ 20,051,451

$ (732,198)

$ 397,247

$ 18,922,006

(1) This project was abandoned during the year.


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56

5) CAPITAL ASSETS - Continued Depreciation was charged to functions/programs as follows:

Business-type Activities: Sewer Utility $ 252,628 Public Utility Authority 320,359 Water Utility 159,211 Total Depreciation Expense - Business-type Activities $ 732,198

6) LONG-TERM LIABILITIES

Governmental Activities:

Beginning Ending Due Within Balance Additions Deletions Balance One Year Notes Payable $ 781,370 $ $ $ 781,370 $ Revenue Bonds 168,985,000 30,645,000 8,520,000 (1) 191,110,000 7,735,000Compensated Absences (Note 7) 908,823 292,802 181,764 1,019,861 203,972Net Pension Liability (Note 13) 10,674,250 2,699,383 843,445 12,530,188 Net OPEB Liability (Note 14) 8,502,961 8,235,779 (2) 629,983 16,108,757 Premiums on Revenue Bonds 1,499,744 2,426,442 99,236 3,826,950 Discounts on Revenue Bonds (1,129,044) (7,161) (59,854) (1,076,351) Total $ 190,223,104 $ 44,292,245 $ 10,214,574 $ 224,300,775 $ 7,938,972

(1) This amount includes bond calls of $2,165,000. (2) This amount includes a prior period adjustment of $7,189,031. See Note 21. Business-type Activities:

Beginning Ending Due Within Balance Additions Deletions Balance One Year Notes Payable $ 5,297,049 $ $ 5,297,049(1) $ 0 $ Compensated Absences (Note 7) 171,471 40,785 34,294 177,962 35,592Net Pension Liability (Note 13) 364,374 103,745 39,760 428,359 Total $ 5,832,894 $ 144,530 $ 5,371,103 $ 606,321 $ 35,592

(1) This amount includes a $2,331,000 forgiveness of debt. See Note 22.


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6) LONG-TERM LIABILITIES - Continued Notes Payable

Governmental Activities: The Perris Redevelopment Agency entered into a promissory note with the City of Perris for $2,192,000 on October 26, 2004. The note was to reimburse the Agency's cost to acquire a property for a new sheriff station and other facilities. Interest is accrued at a rate of 4% per annum. Payments are solely made from police and community facilities development impact fees. The balance of this note is $781,370 as of June 30, 2018. During the 2012 fiscal year, the Perris Redevelopment Agency was dissolved and the note is now with the Successor Agency to the Perris Redevelopment Agency. Currently, this note payable has no debt service schedule available.

$ 781,370

Business-type Activities:

On July 23, 2002, the City of Perris entered into an installment sale agreement for $1,600,000, payable to the California Infrastructure and Economic Development Bank. The agreement is to provide funding for the removal, replacement and upgrading of existing sewer mains under the Indian Hills/Enchanted Heights Reach II Sewer Upgrade Project. Interest on the agreement is payable August 1st and February 1st of each year. Interest on the agreement accrues at 3.42% per annum. Principal on the agreement is payable in annual installments ranging from $30,888 to $74,048 commencing February 1, 2004, through February 1, 2032. The agreement requires a maintenance of system revenues that (a) pledged net system revenues are in an amo*-unt which will be sufficient to be at least equal to one hundred ten percent (110%) of the annual debt service for such fiscal year and (b) if pledged net system revenues are insufficient to comply with (a) then the City has 180 days following the date the pledged net system revenues failure to meet the requirement to increase rent, rates, fees, charges and/or assessments. The City paid the remaining balance of the note payable during the year.

$ 0

On December 12, 2008, the Perris Public Utility Authority entered into a promissory note with McCanna Ranch Water Company for $9,360,000. The note is for the acquisition of the company’s capital assets and operations. Interest on the note accrues at 2% per annum. The note is secured by the issuance of bonds. The first bond is required to equal or exceed $4,950,000. The remaining $4,410,000 shall be determined by the subsequent issuance of bonds according to the promissory note covenants. On March 31, 2015, the Authority approved a settlement agreement with BAI Investor, LLC that requires two payments to settle the debt. The Authority agreed to pay BAI Investor $5,879,635 to satisfy the $4,950,000 first payment. The $4,410,000 second payment will become due when the State Water Resources Control Board issues an amendment to the Authority’s permit allowing appropriation of additional water from the underground stream diversion of that water to other parts of the City. The Authority and Company during the fiscal year came to a settlement agreement on the remaining principal balance. See Note 22.

0

Total Notes Payable $ 0


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6) LONG-TERM LIABILITIES - Continued

Revenue Bonds

On August 7, 2007, the Public Financing Authority issued $11,895,000 2007 Revenue Refunding Bonds, Series A, to refund a portion of the 1996 Revenue Bonds, Series F. Interest on the bonds is payable September 1 and March 1 of each year. Interest on the bonds accrues at rates varying from 4.000% to 5.000% per annum. Principal on the serial bonds is payable in annual installments ranging from $395,000 to $1,115,000 commencing September 1, 2008 through September 1, 2024. At June 30, 2018, the Authority has a cash reserve balance for debt service of $319,466 which is sufficient to cover the Bond Indenture Reserve Requirement.

$ 3,075,000

On February 3, 2009, the Public Financing Authority issued $4,055,000 2009 Revenue (Tax Allocation) Bonds, Series A, to provide loans to the Redevelopment Agency. The proceeds of these loans will be used to finance the 1987 Project Loan and to pay related expenses of the Authority. Interest on the bond is payable October 1 and April 1 of each year. Interest on the bond accrues at rates varying from 3.250% to 6.100% per annum. Principal on the serial bonds is payable in annual installments ranging from $60,000 to $875,000 commencing October 1, 2009 through October 1, 2037. At June 30, 2018, the Authority has a cash reserve balance for debt service of $407,028 which is sufficient to cover the Bond Indenture Reserve Requirement.

3,485,000

On February 25, 2009, the Public Financing Authority issued $7,605,000 2009 Revenue (Tax Allocation) Bonds, Series B, to provide loans to the Redevelopment Agency. The proceeds of these loans will be used to finance the 1994 Project Loan and to pay related expenses of the Authority. Interest on the bond is payable October 1 and April 1 of each year. Interest on the bond accrues at rates varying from 3.250% to 6.150% per annum. Principal on the serial bonds is payable in annual installments ranging from $65,000 to $1,310,000 commencing October 1, 2009 through October 1, 2039. At June 30, 2018, the Authority has a cash reserve balance for debt service of $765,728 which is sufficient to cover the Bond Indenture Reserve Requirement.

6,955,000

On June 19, 2009, the Public Financing Authority issued $5,490,000 2009 Revenue (Tax Allocation) Bonds, Series C, to provide loans to the Redevelopment Agency. The proceeds of these loans will be used to finance the Central North Project Loan and to pay related expenses to the Authority. Interest on the bond is payable October 1 and April 1 of each year. Interest on the bond accrues at rates varying from 3.000% to 6.375% per annum. Principal on the serial bonds is payable in annual installations ranging from $60,000 to $1,380,000 commencing October 1, 2010 through October 1, 2035. At June 30, 2018, the Authority has a cash reserve balance for debt service of $552,750 which is sufficient to cover the Bond Indenture Requirement.

4,930,000

On April 19, 2010, the Public Financing Authority issued $7,180,000 2010 Revenue (Tax Allocation) Bonds, Series A, to provide loans to the Redevelopment Agency. The proceeds of these loans will be used to finance the Housing Loans and to pay related expenses to the Authority. Interest on the bond is payable October 1 and April 1 of each year. Interest on the bond accrues at rates varying form 3.000% to 5.500% per annum. Principal on the serial bonds is payable in annual installations ranging from $25,000 to $1,200,000 commencing October 1, 2010 through October 1, 2040. At June 30, 2018, the Authority has a cash reserve balance for debt service of $722,937 which is sufficient to cover the Bond Indenture Requirement.

6,960,000


June 30, 2018

59


Revenue Bonds - Continued On May 8, 2013, the Perris Joint Powers Authority issued $2,775,000 2013 Local Agency Revenue Bonds, Series A, to refund a portion of the Perris Public Financing Authority 1995 Revenue Bonds, Series D and to acquire CFD 93-2 (Perris Plaza) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 5.00% per annum. Principal on serial bonds is payable in annual installments ranging from $195,000 to $280,000 commencing September 1, 2014 through September 1, 2025. The final payment on this bond was made during the fiscal year.

$ 0

On June 12, 2013, the Perris Joint Powers Authority issued $5,750,000 2013 Local Agency Revenue Bonds, Series B to acquire CFD 2002-1 (Willowbrook Refunding) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 5.25% per annum. Principal on serial bonds is payable in annual installments ranging from $125,000 to $540,000 commencing September 1, 2014 through September 1, 2033. At June 30, 2018, the Authority has a cash reserve balance for debt service of $555,177 which is sufficient to cover the Bond Indenture Reserve Requirement.

5,045,000

On January 16, 2014, the Perris Joint Powers Authority issued $12,165,000 2014 Local Agency Revenue Bonds, Series A, to refund a portion of the Perris Public Financing Authority 2003 Revenue Bonds, Series A and to acquire CFD 2001-1 (May Farms IA 1, 2 & 3) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 5.375% per annum. Principal on serial bonds is payable in annual installments ranging from $405,000 to $905,000 commencing September 1, 2014 through September 1, 2033. At June 30, 2018, the Authority has a cash reserve balance for debt service of $947,544 which is sufficient to cover the Bond Indenture Reserve Requirement.

10,160,000

On June 4, 2014, the Perris Joint Powers Authority issued $2,825,000 2013 Local Agency Revenue Bonds, Series B, to refund a portion of the Perris Public Financing Authority 2007 Revenue Bonds, Series C and to acquire CFD 2006-1 (Meritage Homes) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 5.00% per annum. Principal on serial bonds is payable in annual installments ranging from $45,000 to $120,000 commencing September 1, 2014 through September 1, 2038. At June 30, 2018, the Authority has a cash reserve balance for debt service of $217,618 which is sufficient to cover the Bond Indenture Reserve Requirement.

2,525,000

On July 24, 2014, the Perris Joint Powers Authority issued $8,615,000 2014 Local Agency Revenue Bonds, Series C, to refund a portion of the Perris Public Financing Authority 2004 Revenue Bonds, Series A and to acquire CFD 2004-3 (Monument Ranch IA 1) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.25% per annum. Principal on serial bonds is payable in annual installments ranging from $315,000 to $595,000 commencing September 1, 2015 through September 1, 2034. At June 30, 2018, the Authority has a cash reserve balance for debt service of $619,941 which is sufficient to cover the Bond Indenture Reserve Requirement.

7,530,000


June 30, 2018

60


Revenue Bonds - Continued On July 17, 2014, the Perris Joint Powers Authority issued $4,695,000 2014 Local Agency Revenue Bonds, Series D, to acquire CFD 2004-2 (CLC Refunding) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.25% per annum. Principal on serial bonds is payable in annual installments ranging from $170,000 to $325,000 commencing September 1, 2015 through September 1, 2034. At June 30, 2018, the Authority has a cash reserve balance for debt service of $341,763 which is sufficient to cover the Bond Indenture Reserve Requirement.

$ 4,100,000

On September 18, 2014, the Perris Joint Powers Authority issued $13,925,000 2014 Local Agency Revenue Bonds, Series E, to refund a portion of the Perris Public Financing Authority 2007 Revenue Bonds, Series D and to acquire CFD 2001-1 (May Farms IA 6, & 7) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.25% per annum. Principal on serial bonds is payable in annual installments ranging from $380,000 to $890,000 commencing September 1, 2015 through September 1, 2038. At June 30, 2018, the Authority has a cash reserve balance for debt service of $921,843 which is sufficient to cover the Bond Indenture Reserve Requirement.

12,575,000

On October 9, 2014, the Perris Joint Powers Authority issued $2,465,000 2014 Local Agency Revenue Bonds, Series F, to refund a portion of the Perris Public Financing Authority 2004 Revenue Bonds, Series A and to acquire CFD 2004-1 (Amber Oaks) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.00% per annum. Principal on serial bonds is payable in annual installments ranging from $90,000 to $165,000 commencing September 1, 2015 through September 1, 2034. At June 30, 2018, the Authority has a cash reserve balance for debt service of $177,600 which is sufficient to cover the Bond Indenture Reserve Requirement.

2,145,000

On November 13, 2014, the Perris Joint Powers Authority issued $3,435,000 2014 Local Agency Revenue Bonds, Series G, to refund a portion of the Perris Public Financing Authority 2003 Revenue Bonds, Series A and to acquire CFD 2003-1 (Chaparral Ridge) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.00% per annum. Principal on serial bonds is payable in annual installments ranging from $105,000 to $290,000 commencing September 1, 2015 through September 1, 2033. At June 30, 2018, the Authority has a cash reserve balance for debt service of $303,716 which is sufficient to cover the Bond Indenture Reserve Requirement.

3,085,000

On March 26, 2015, the Perris Joint Powers Authority issued $13,570,000 2015 Local Agency Revenue Bonds, Series A, to acquire CFD 2005-2 (Harmony Grove) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 3.875% per annum. Principal on serial bonds is payable in annual installments ranging from $355,000 to $885,000 commencing September 1, 2015 through September 1, 2035. At June 30, 2018, the Authority has a cash reserve balance for debt service of $927,739 which is sufficient to cover the Bond Indenture Reserve Requirement.

12,225,000


June 30, 2018

61


Revenue Bonds - Continued On May 19, 2015, the Perris Joint Powers Authority issued $9,020,000 2015 Local Agency Revenue Bonds, Series B, to acquire CFD 2006-2 (Monument Park Estates) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 5.00% per annum. Principal on serial bonds is payable in annual installments ranging from $40,000 to $760,000 commencing September 1, 2016 through September 1, 2045. At June 30, 2018, the Authority has a cash reserve balance for debt service of $758,323 which is sufficient to cover the Bond Indenture Reserve Requirement.

$ 8,840,000

On June 18, 2015, the Perris Joint Powers Authority issued $8,285,000 2015 Local Agency Revenue Bonds, Series C, to acquire CFD 2004-3 (IA2) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.25% per annum. Principal on serial bonds is payable in annual installments ranging from $210,000 to $715,000 commencing September 1, 2016 through September 1, 2035. At June 30, 2018, the Authority has a cash reserve balance for debt service of $748,895 which is sufficient to cover the Bond Indenture Reserve Requirement.

7,855,000

On July 9, 2015, the Public Financing Authority issued $21,590,000 2015 Revenue (Tax Allocation) Refunding Bonds, Series A, to refund the 2001 Series A and B, 2002, Series A and B and the 2006 (related to the housing loan) Tax Allocation Revenue Bonds and related Successor Agency Loans (see Note 4). Interest on the bond is payable October 1 and April 1 of each year. Interest on the bond accrues at rates varying from 2% to 5% per annum. Principal on the serial bonds is payable in annual installments ranging from $795,000 to $1,645,000 commencing October 1, 2016 through October 1, 2033. At June 30, 2018, the Authority has a cash reserve balance for debt service of $1,803,916 which is sufficient to cover the Bond Indenture Reserve Requirement.

19,665,000

On July 9, 2015, the Public Financing Authority issued $23,120,000 2015 Revenue (Tax Allocation Subordinate) Refunding Bonds, Series B, to refund the 2002 Series C and the 2006 (excluding the housing loan portion) Tax Allocation Revenue Bonds and related Successor Agency loans (see Note 4). Interest on the bond is payable October 1 and April 1 of each year. Interest on the bond accrues at rates varying from 2% to 4% per annum. Principal on the serial bonds is payable in annual installments ranging from $765,000 to $2,190,000 commencing October 1, 2016 through October 1, 2036. At June 30, 2018, the Authority has a cash reserve balance for debt service of $2,032,667 which is sufficient to cover the Bond Indenture Reserve Requirement.

21,575,000

On August 6, 2015, the Perris Joint Powers Authority issued $1,540,000 2015 Local Agency Revenue Bonds, Series D, to acquire CFD 2014-2 (Perris Valley Spectrum) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 3.00% per annum. Principal on serial bonds is payable in annual installments ranging from $240,000 to $270,000 commencing September 1, 2016 through September 1, 2021. At June 30, 2018, the Authority has a cash reserve balance for debt service of $154,725 which is sufficient to cover the Bond Indenture Reserve Requirement.

1,050,000


June 30, 2018

62


Revenue Bonds - Continued On September 15, 2015, the Perris Joint Powers Authority issued $4,560,000 2015 Local Agency Revenue Bonds, Series E, to refund a portion of the Perris Public Financing Authority 2008 Revenue Bonds, Series B, and to acquire CFD 2005-1 (IA3) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.50% per annum. Principal on serial bonds is payable in annual installments ranging from $130,000 to $295,000 commencing September 1, 2016 through September 1, 2038. At June 30, 2018, the Authority has a cash reserve balance for debt service of $309,814 which is sufficient to cover the Bond Indenture Reserve Requirement.

$ 4,250,000

On October 14, 2015, the Perris Joint Powers Authority issued $5,415,000 2015 Local Agency Revenue Bonds, Series F, to refund a portion of the Perris Public Financing Authority 2008 Revenue Bonds, Series A, and to acquire CFD 2005-4 Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.25% per annum. Principal on serial bonds is payable in annual installments ranging from $145,000 to $340,000 commencing September 1, 2016 through September 1, 2038. At June 30, 2018, the Authority has a cash reserve balance for debt service of $358,931 which is sufficient to cover the Bond Indenture Reserve Requirement.

4,945,000

On December 8, 2015, the Perris Joint Powers Authority issued $3,190,000 2015 Local Agency Revenue Bonds, Series G, to acquire CFD 2005-4 (Steeplechase) Special Tax Bonds. Interest on the bonds is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.0% per annum. Principal on serial bonds is payable in annual installments ranging from $105,000 to $190,000 commencing September 1, 2016 through September 1, 2038. At June 30, 2018, the Authority has a cash reserve balance for debt service of $202,825 which is sufficient to cover the Bond Indenture Reserve Requirement.

2,955,000

On June 21, 2017, the Perris Joint Powers Authority issued $4,580,000 2017 Local Agency Revenue Bonds, Series A, to acquire CFD 2014-1 (Avelina) Special Tax Bonds. Interest on the bond is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 3.75% per annum. Principal on serial bonds is payable in annual installments ranging from $20,000 to $335,000 commencing September 1, 2017 through September 1, 2047. At June 30, 2018, the Authority has a cash reserve balance for debt service of $332,664 which is sufficient to cover the Bond Indenture Reserve Requirement.

4,535,000

On September 12, 2017, the Authority issued $22,175,000 2017 Local Agency Revenue Bonds, Series B, to acquire CFD 2001-1 (May Farms IA 4 & 5) and CFD 2005-1 (Perris Valley Vistas IA 4) Special Tax Bonds. Interest on the bond is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 5.00% per annum. Principal on serial bonds is payable in annual installments ranging from $825,000 to $1,555,000, commencing September 1, 2018 through September 1, 2037. The related CFD bonds have individual reserve requirements, under the Bond Indenture, but the Authority is not required to have a cash reserve balance.

22,175,000


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Revenue Bonds - Continued

On December 14, 2017, the Authority issued $4,060,000 2017 Local Agency Revenue Refunding Bonds, Series C, to acquire CFD 93-1 (May Ranch) and CFD 2004-5 (Amber Oaks II) Special Tax Bonds. Interest on the bond is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 3.75% per annum. Principal on serial bonds is payable in annual installments ranging from $70,000 to $595,000 commencing September 1, 2018 through September 1, 2035. The related CFD bonds have individual reserve requirements, under the Bond Indenture, but the Authority is not required to have a cash reserve balance.

$ 4,060,000

On April 10, 2018, the Authority issued $4,410,000 2018 Local Agency Revenue Bonds, Series A, to acquire CFD 2014-1 (Avelina IA-2) Special Tax Bonds. Interest on the bond is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 2.00% to 4.00% per annum. Principal on serial bonds is payable in annual installments ranging from $30,000 to $330,000 commencing September 1, 2018 through September 1, 2048. At June 30, 2018, the Authority has a cash reserve balance for debt service of $328,634 which is sufficient to cover the Bond Indenture Reserve Requirement.

4,410,000

Total Revenue Bonds $ 191,110,000 The future debt requirements of the Revenue Bonds are as follows:

Year Ending June 30, Principal Interest Total

2019 $ 7,735,000 $ 7,853,614 $ 15,588,614 2020 7,810,000 7,673,621 15,483,621 2021 7,645,000 7,446,304 15,091,304 2022 7,890,000 7,189,328 15,079,328 2023 7,930,000 6,911,858 14,841,858

2024-2028 41,710,000 29,755,552 71,465,552 2029-2033 50,265,000 20,233,624 70,498,624 2034-2038 43,610,000 8,894,339 52,504,339 2039-2043 11,210,000 2,107,075 13,317,075 2044-2048 4,975,000 519,644 5,494,644

2049 330,000 6,600 336,600 Total $ 191,110,000 $ 98,591,559 $ 289,701,559


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7) COMPENSATED ABSENCES For governmental funds and proprietary funds, accumulated vacation and sick leave benefits and compensatory time

payable in future years when used by City employees amounted to $1,019,861 and $177,962, respectively at June 30, 2018. These amounts are payable from future resources and therefore have been recorded in long-term liabilities in the government-wide financial statements. Vacation benefits, sick leave, and compensatory time are recorded as expenditures in the related governmental fund financial statements when used. Upon retirement or termination, the expenditures are recorded in the fund which incurred the original obligation. Generally, in governmental activities, the general fund has liquidated compensated absences in prior years. Compensated absences payable for proprietary funds are reported within the respective funds.

8) ASSESSMENT DISTRICT AND COMMUNITY FACILITIES DISTRICT BONDS Bonds issued for improvements in certain special assessment districts in accordance with the provisions of the Municipal

Improvement Acts of 1911, 1913 and 1915 are liabilities of the property owners and are secured by liens against the assessed property. The City Treasurer acts as an agent for collection of principal and interest payments by the property owners and remittance of such monies to the bondholders.

Neither the faith and credit, nor the general taxing power, of the City of Perris have been pledged to the payment of the

bonds. Therefore, none of the following special assessment bonds have been included in the accompanying financial statements.

Amount Outstanding at District Bonds of Issue End of Year

CFD 93-2 Revised Bonds $ 6,200,000 $ 1,895,000CFD 2001-1 2005 Series A Bonds 16,475,000 13,735,000CFD 2001-2 2005 Series B Bonds 5,210,000 4,325,000CFD 2001-1 2006 Series A Bonds 9,680,000 8,260,000CFD 2005-1 2007 Series A Bonds 3,385,000 2,820,000CFD 88-1 2007 Refunding Bonds 7,690,000 1,275,000CFD 88-3 2007 Refunding Bonds 5,005,000 1,430,000CFD 90-1 2007 Refunding Bonds 3,140,000 1,100,000CFD 2002-1 2013 Refunding Bonds 5,750,000 5,045,000CFD 2001-2 2014 Refunding Series A Bonds 16,215,000 13,860,000CFD 2001-1 IA1 2014 Refunding Bonds 1,505,000 1,270,000CFD 2001-1 IA2 2014 Refunding Bonds 4,270,000 3,550,000CFD 2001-1 IA3 2014 Refunding Bonds 6,390,000 5,340,000CFD 2006-1 2014 Refunding Bonds 2,825,000 2,525,000CFD 2004-3 IA 1 2014 Refunding Bonds 8,615,000 7,530,000CFD 2004-2 2014 Refunding Bonds 4,695,000 4,150,000CFD 2001-1 IA6 2014 Refunding Bonds 6,015,000 5,415,000CFD 2001-1 IA7 2014 Refunding Bonds 7,910,000 7,160,000CFD 2004-1 2014 Series A Bonds 2,465,000 2,180,000


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8) ASSESSMENT DISTRICT AND COMMUNITY FACILITIES DISTRICT BONDS - Continued

Amount Outstanding at District Bonds of Issue End of Year CFD 2003-1 2014 Refunding Bonds $ 3,435,000 $ 3,085,000CFD 2005-2 2015 Refunding Bonds 13,570,000 12,225,000CFD 2006-2 2015 Series Bonds 9,020,000 8,840,000CFD 2004-3 IA2 2015 Refunding Bonds 8,285,000 7,855,000CFD 2014-2 2015 Refunding Bonds 1,540,000 1,050,000CFD 2005-1 IA3 2015 Refunding Bonds 4,560,000 4,285,000CFD 2005-4 (Stratford Ranch) 2015 Refunding Bonds 5,415,000 5,095,000CFD 2005-4 (Steeplechase) 2015 Refunding Bonds 3,190,000 2,955,000CFD 2014-1 IA1 (Avelina) 2017 Series Bonds 4,580,000 4,130,000CFD 2001-1 IA4 (May Farms) 2017 Series A Refunding Bonds 12,240,000 12,240,000CFD 2001-1 IA5 (May Farms) 2017 Series B Refunding Bonds 7,405,000 7,405,000CFD 2005-1 IA4 (Perris Valley Vistas) 2017 Series A Refunding Bonds 2,530,000 2,530,000CFD 93-1 (May Ranch) 2017 Series A Refunding Bonds 2,640,000 2,640,000CFD 2004-5 (Amber Oaks II) 2017 Series A Refunding Bonds 1,420,000 1,420,000CFD 2014-1 IA2 (Avelina) 2018 Series Bonds 4,410,000 4,410,000

$ 207,680,000 $ 173,030,000

9) SINGLE FAMILY MORTGAGE REVENUE BONDS The City has issued mortgage revenue bonds as follows:

Outstanding Balance End of Year City of Perris Single Family Mortgage Revenue Bonds 1988 Series A $ 28,090,000 1988 Series B 13,145,000 1989 Series A 9,315,000 Total $ 50,550,000

The Bonds are special obligations payable solely from payments made on the loans and are secured by a pledge of such

loans. Neither the faith and credit nor the taxing power of the City of Perris have been pledged to the payment of the bonds, and, therefore, the bond indebtedness is not shown in the financial statements of the City.


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10) INTER-FUND RECEIVABLES, PAYABLES AND TRANSFERS During the course of normal operations, the City enters into numerous transactions between funds, including expenditures

and transfers of resources to provide services, construct assets, and service debt. The accompanying governmental fund financial statements generally reflect such transactions as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as transfers. Inter-fund transactions and inter-fund payables/receivables at year-end are not eliminated in the governmental fund financial statements.

Advances to/from other funds are as follows:

ADVANCES TO Other Public Successor Agency Governmental Utility Water Private-Purpose Funds Authority Utility Trust Fund Total

ADVANCES FROM

General Fund $ 902,782 $ 8,047,792 $ 475,926 $ 48,289 $ 9,474,789

Total $ 902,782 $ 8,047,792 $ 475,926 $ 48,289 $ 9,474,789

The Public Utility Authority has a balance of $2,952,109 due from the General Fund. This balance is to assist the fund with

general operations. The General Fund advanced the Public Utility Fund $5,879,635. The advance is being used to provide funding for a

settlement agreement with BAI Investor, LLC related to the business-type activities notes payable described in Note 6. Interest on the advance accrues 6% per annum. Principal on the advance is payable in annual payments of $195,988 and a final payment of $195,983 commencing June 30, 2015 through June 30, 2044. The balance of the advance is $5,095,683 as of June 30, 2018.

The General Fund has advances of $902,782 to other governmental funds and $42,289 to the Successor Agency to assist

those funds in paying expenditures until amounts are received from outside sources to pay for those expenditures. The General Fund advanced the Water Utility Fund $322,682 in 2007, $89,964 in 2016 and $63,280 in 2018. The 2007

advance was used by the Water Utility Fund to make a final payment on its note payable to the California Infrastructure and Economic Development Bank. The remaining advance is being used to assist the Water Utility Fund operations. The balance of the advances are $475,926 as of June 30, 2018.


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10) INTER-FUND RECEIVABLES, PAYABLES AND TRANSFERS - Continued Transfers are used to provide services, construct assets, and debt service between funds. The $500,902 transfer between the

Housing Authority and the Perris CEDC was for land purchased by the Perris CEDC for the Housing Authority. Inter-fund transfers are as follows:

TRANSFERS OUT

Non-major General Governmental Fund Funds Total TRANSFERS IN: General Fund $ $ 925,000 $ 925,000 Non-major Governmental Funds 289,702 130,190 419,892 Housing Authority 545,987 545,987 Total $ 835,689 $ 1,055,190 $ 1,890,879

11) NET POSITION AND FUND BALANCE The details of restricted net position for other purposes, in the Statement of Net Position, are presented below:

Statement of Net Position Governmental Business-type Activities Activities Debt Service $ 1,448,240 $ Air Quality Management 221,409 Traffic Safety 1,424,490 Lighting and Landscape Maintenance 7,437,130 Community Development 473,132 3,223,869 Construction 2,203,223 Homeless Prevention(1) 741,030 Rental Housing Projects for Extremely Low Income Households(1)

295,879

Low and Moderate Housing 4,733,610 Total $ 13,207,624 $ 8,994,388

(1) In the Statement of Net Position for proprietary funds, these line items are included in restricted for other purposes.

As noted in Note 1, restricted funds are used first as appropriate. Assigned fund balance is reduced to the extent that

expenditure has been appropriated by City Council. Decreases in fund balance first reduce committed fund balance, in the event that committed fund balance becomes zero, then assigned and unassigned fund balances are used in that order.


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11) NET POSITION AND FUND BALANCE - Continued The details of the fund balances as of June 30, 2018 are presented below:

Road and Bridge Fund Balances

General Fund

Public Financing Authority

Debt Service Fund

Joint Powers Authority

Debt Service Fund

Benefit District Special

Revenue Fund Nonspendable: Prepaid Items $ 3,244 $ $ $ Advances to Other Funds 9,474,789 Deposits 2,284,123 Restricted for: Development Debt Service 65,911,729 128,957,870 Air Quality Management Traffic Safety Lighting and Landscape Maintenance

Streets and Flood Control 52,333,368 Community Development Construction Assigned to: General Fund* 6,200,000 Unassigned 16,793,355 Total Fund Balance $ 34,755,511 $ 65,911,729 $ 128,957,870 $ 52,333,368


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11) NET POSITION AND FUND BALANCE - Continued

Fund Balances

Storm Drain Development

Capital Project Fund

Capital ImprovementProjects

Capital Projects Fund

Non-major

Governmental Funds

Total

Governmental Funds

Nonspendable: Prepaid Items $ $ $ $ 3,244 Advances to Other Funds 9,474,789 Deposits 2,284,123 Restricted for: Development 16,183,561 16,183,561 Debt Service 194,869,599 Air Quality Management 221,409 221,409 Traffic Safety 1,423,566 1,423,566 Lighting and Landscape Maintenance

7,414,902

7,414,902

Streets and Flood Control 19,659,173 71,992,541 Community Development 473,132 473,132 Construction 2,203,223 2,203,223 Assigned to: General Fund* 6,200,000 Unassigned (2,967) (627,887) (778,689) 15,383,812 Total Fund Balance $ (2,967) $ (627,887) $ 46,800,277 $ 328,127,901

*General Fund balance assignments are as follows:

Disaster Preparedness $ 3,400,000Vehicle and Equipment Replacement 1,300,000Major Capital Improvements and Repairs 1,300,000Budget Contingency 200,000 Total $ 6,200,000


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12) OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES Total expenditures exceeded total appropriations in the following funds:

Appropriations Expenditures Difference Non-major Funds: CFD 14-1 IA1 Capital Project Fund

$ 0

$ 4,024,020

$ (4,024,020)

CFD 14-1 IA2 Capital Project Fund 0 1,790,635 (1,790,635) The following had a deficit fund balance at June 30, 2018. These deficits are expected to be eliminated through future

revenues. Fund Amount

Storm Drain Development Capital Project Fund $ (2,967) Capital Improvement Projects Capital Project Fund (627,887) Asset Forfeiture Special Revenue Fund (22,849) CDBG Entitlement Special Revenue Fund (75,617) State Grants Special Revenue Fund (176,167) Federal Grants Special Revenue Fund (454,498) Local Health Grant Special Revenue Fund (49,558)

13) CITY EMPLOYEES’ RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) A) General Information about the Pension Plans

Plan Description - All qualified permanent and probationary employees are eligible to participate in the City’s Cost-Sharing Multiple Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors four rate plans (three miscellaneous and one safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of fulltime employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.


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13) CITY EMPLOYEES’ RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) A) General Information about the Pension Plans - Continued

The rate plans provisions and benefits in effect at June 30, 2018, are summarized as follows:

Miscellaneous Prior to On or After Hire Date January 1, 2013 January 1, 2013(1)

Benefit Formulas 2.7% at 55 2.0% at 60

2.0% at 62

Benefit Vesting Schedule 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life Retirement Age 50-55+ 52-67+ Monthly Benefits, as a % of Eligible Compensation 2.0% to 2.7% 1.0% to 2.5% Required Employee Contribution Rates 8% 6.25% Required Employer Contribution Rates 11.675% 6.553%

Miscellaneous 2nd Tier Prior to On or After Hire Date January 1, 2013 January 1, 2013(1)

Benefit Formulas 2.0% at 60 2% at 62 Benefit Vesting Schedule 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life Retirement Age 55 - 60 52 - 67 Monthly Benefits, as a % of Eligible Compensation 1.092% - 2.418% 1.0% - 2.5% Required Employee Contribution Rates 7% 6.25% Required Employer Contribution Rates 7.200% 6.553%

Safety(2)

Prior to On or After Hire Date January 1, 2013 January 1, 2013(1)

Benefit Formulas 0.5% at 55 N/A Benefit Vesting Schedule 5 Years Service N/A Benefit Payments Monthly for Life N/A Retirement Age 50 N/A Monthly Benefits, as a % of Eligible Compensation 0.5% N/A Required Employee Contribution Rates N/A N/A Required Employer Contribution Rates N/A N/A

(1) For employees hired on or after January 1, 2013, they are included in their respective PEPRA (California Public

Employees’ Pension Reform Act) Plans with the above provisions and benefits. (2) Note the City currently does not have any safety employees. The Safety Plan represents former safety employees.


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13) CITY EMPLOYEES’ RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) - Continued A. General Information about the Pension Plans - Continued

Contributions - Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The contributions to the Plan for the year ended June 30, 2018 were $1,045,038.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

As of June 30, 2018, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $12,958,547.

The City net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2017, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 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-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability as of June 30, 2016 and 2017 was as follows:

Proportion Change

June 30, 2017 June 30, 2016 Increase (Decrease) 0.13067% 0.12757% 0.00310%


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13) CITY EMPLOYEES’ RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) - Continued B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - Continued

For the year ended June 30, 2018, the City recognized pension expense (credit) of $2,129,680. At June 30, 2018, City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Pension contributions subsequent to measurement date $ 1,045,038 $ Differences between actual and expected experience 46,481 (190,111) Changes in assumptions 2,060,636 (157,357) Change in employer’s proportion and differences between the employer’s contributions and the employer’s Proportionate share of contributions

443,977

(632,821)

Net differences between projected and actual earnings on plan investments

462,048

Total $ 4,058,180 $ (980,289)

The City reported $1,045,038 as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflow of resources related to pensions will be recognized as pension expense as follows:

Deferred Year Ended Outflows/(Inflows)

June 30 of Resources

2019 $ 511,634 2020 1,142,563 2021 652,064 2022 (273,408)


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Actuarial Assumptions - The total pension liabilities in the June 30, 2016 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Valuation Date June 30, 2016 Measurement Date June 30, 2017 Actuarial Cost Method Actuarial Assumptions: Discount Rate 7.15% Inflation 2.75% Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 7.15% Mortality CalPERS Membership Data(1) Post Retirement Benefit Increase Contract COLA up to 2.75% until purchasing power protection allowance floor on purchasing power applies, 2.75% thereafter (1) The Mortality Rate Table was developed based on CalPERS’ specific data. The table includes 20 years of

mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report from the CalPERS website.

All other actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications . Discount Rate - The discount rate used to measure the total pension liability was 7.15% for the 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. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed 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 cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS website under the GASB 68 section. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.


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In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employee Retirement Funds’ asset classes (which includes the agent plan and two cost sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF 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 the rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2014.

Asset Class

New Strategic Allocation

Real Return Years 1 - 10(a)

Real Return Years 11+(b)

Global Equity 47.0% 4.90% 5.38% Global Fixed Income 19.0% 0.80% 2.27% Inflation Sensitive 6.0% 0.60% 1.39% Private Equity 12.0% 6.60% 6.63% Real Estate 11.0% 2.80% 5.21% Infrastructure and Forestland 3.0% 3.90% 5.36% Liquidity 2.0% -0.40% -0.90% Total 100%

(a) An expected inflation of 2.5% used for this period. (b) An expected inflation of 3.0% used for this period.


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Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City’s proportionate share of the net position liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

CalPERS Pension Plan

1% Decrease 6.15%

Net Pension Liability $ 19,754,573

Current Discount Rate 7.15% Net Pension Liability $ 12,958,547

1% Increase 8.15%

Net Pension Liability $ 7,347,407 Pension Plan Fiduciary Net Position - Detailed information about the pension Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

C. Payable to the Pension Plan

At June 30, 2018, the City reported a payable of $45,157, which is included in accounts payable and accrued liabilities, for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2018.

14) OTHER POST EMPLOYMENT BENEFITS

Plan Description The City’s defined benefit postemployment healthcare plan, (City of Perris Retiree Healthcare Plan, CPRHP), provides medical benefits to eligible retired employees and qualified dependents. CPRHP is part of the Public Agency portion of the California Employers’ Retiree Benefit Trust Fund (CERBT), an agent multiple-employer plan administered by California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees’ Retirement Law. CPRHP selects optional benefit provisions from the benefit menu by contract with CalPERS. CalPERS issues a Comprehensive Annual Financial Report (CAFR). The CAFR is issued in aggregate and includes the sum of all CalPERS plans. Copies of the CalPERS CAFR may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.


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14) OTHER POST EMPLOYMENT BENEFITS - Continued

Funding Policy The contribution requirements of plan members and the City are established and may be amended by the City Council. Retirees hired prior to June 26, 2007 are covered by an “equal contribution method” resolution. The City contributes 100% of the retiree and dependent premiums up to the average of the family premiums for the two median-cost plans. Retirees hired after June 25, 2007 are covered under a “vesting” resolution. A summary of the “vesting” resolution is as follows:

Contributions Employee Employee and Employee and

Only 1 Dependent 2+ Dependents $646 $1,292 $1,680

Years of Service Vesting % Less than 10 0%

10 50% 11 55% 12 60% 13 65% 14 70% 15 75% 16 80% 17 85% 18 90% 19 95%

20 or More 100% The plan is financed on a pay-as-you-go basis. Employees Covered As of June 30, 2018 actuarial valuation, the following current and former employees were covered by the benefit terms under the CPRHP:

Active employees 75 Inactive employees or beneficiaries currently receiving benefits 52 Inactive employees entitled to, but not yet receiving benefits 0 Total 127


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Contributions Currently, the City is under a pay-as-you-go method under which contributions to the plan are generally made the same time and in the same amount as retiree benefits and expenses come due. For the fiscal year ended June 30, 2018, the City’s contributions were $629,983 in benefit payments, including the estimated implied subsidy. Net OPEB Liability The City’s net OPEB liability was measured as of June 30, 2018 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated July 1, 2017 based on the following actuarial methods and assumptions: Actuarial Assumptions Valuation Date July 1, 2017 Actuarial Cost Method Entry Age Normal, Level Percentage of Pay Amortization Method Straight-line amortization over a closed period equal to the average

expected remaining service lives of all members (4.5124 years). Asset Valuation Method N/A Discount Rate 3.6% per annum, net of investment expenses Investment Rate of Return N/A General Inflation 2.25% Salary Increases 3% per annum for all purposes Pre-retirement Turnover According to Crocker-Sarason Table T-5 less mortality, increased by

100% at all ages. Healthcare Cost Trend 8% for 2017-18, decreasing to 5% for 2020-21 and after Mortality Projection(1) Generational projection based o 100% of scale MP-2016 for years

2014 through 2019, 50% of MP-2016 for years 2030 through 2049, and 20% of MP-2016 for 2050 and thereafter.

(1) Mortality rates were based on the RP-2014 Employee and Healthy Annuitant Mortality Tables for Males or

Females, as appropriate. Discount Rate The discount rate used to measure the total OPEB liability was 3.6 percent. The discount rate was based on the Bond Buyer 20-bond General Obligation Index. Currently, the City is under a pay-as-you-go method and the CPRHP has no fiduciary net position.


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79


Changes in the OPEB Liability The changes in the net OPEB liability for CPRHP are as follows: Increase (Decrease)

Total OPEB Liability

(a)

Plan Fiduciary Net Position

(b)

Net OPEB Liability/(Asset)

(c) = (a) - (b) Balance at June 30, 2017 (Measurement Date June 30, 2017) $ 15,691,992 $ 0 $ 15,691,992 Changes Recognized for the Measurement Period: Service Cost 476,039 476,039 Interest 570,709 570,709 Benefit Payments (629,983) (629,983) Net Changes 416,765 0 416,765 Balance at June 30, 2018 (Measurement Date June 30, 2018)

$ 16,108,757

$ 0

$ 16,108,757

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018:

1% Decrease

(2.6%)

Current Discount Rate

(3.6%)

1% Increase

(4.6%) Net OPEB Liability $ 18,902,000 $ 16,108,757 $ 13,911,594

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018:

1% Decrease

Current Healthcare Cost Trend Rates

1% Increase

Net OPEB Liability $ 13,712,284 $ 16,108,757 $ 19,172,042


June 30, 2018

80


OPEB Plan Fiduciary Net Position Currently, the City is under a pay-as-you-go method, and the CPRHP has no fiduciary net position. Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The City elected to use the transition approach provided in GASB 75, paragraph 244 were no deferred outflows/inflows of resources are calculated in the first year of implementation except for contributions subsequent to the measurement date. The recognition period differs depending on the source of the gain or loss: Net difference between projected and actual earnings on OPEB plan investments

N/A - Currently, no OPEB plan investments.

All other amounts Expected average remaining service lifetime (EARSL)

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2018, the City recognized OPEB expense (credit) of $1,046,748. As of fiscal year ended June 30, 2018, the City had no related deferred outflows or inflows of resources to OPEB.

15) TAX ABATEMENTS On December 18, 2013, the City entered into a location agreement with Home Depot U.S.A, Inc. to locate its retail sales

office to the City of Perris which would generate additional sales tax revenues for the City. The agreement is for a 10 year term (40 quarterly payments) from the effective date of the agreement. As part of the agreement, the City will share 75% of all sales tax revenues, in excess of the first $125,000, attributable to Home Depot U.S.A., Inc. for each fiscal quarter. If at any time during the term the of the agreement, the Board of Equalization, who remits the sales tax revenues, requires repayment or offsets against future sales tax payments, Home Depot U.S.A., Inc. will be required to repay any related amounts that were remitted. The total amount of taxes abated as of June 30, 2018 is $863,738.

On November 17, 2017, the City entered into a location agreement with TechStyle, Inc. to locate its e-commerce retail sales

operations to the City of Perris which would create jobs and generate additional sales tax revenues for the City. The agreement is for a 20 year term or, if earlier, the end of TechStyle, Inc.’s lease of its facilities within the City of Perris. As part of the agreement, the City will share 50% of all sales tax revenues generated through its E-Commerce Retail Sales which will be fulfilled through TechStyle’s Fulfillment Distribution Center. Under the agreement, TechStyle is required to have an employment outreach for local residents to provide reasonable efforts in hiring local residents for full and part-time employment. If at any time during the term the of the agreement, the Board of Equalization, who remits the sales tax revenues, requires repayment or offsets against future sales tax payments, TechStyle, Inc. will be required to repay any related amounts that were remitted. The total amount of taxes abated as of June 30, 2018 is $109,925.


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16) JOINT VENTURE The March Joint Powers Authority (the "Authority") was formed November 14, 1993, under a joint exercise of powers

agreement among the Cities of Perris, Moreno Valley and Riverside and the County of Riverside for the purpose of formulating and implementing plans for the use and reuse of March Air Force Base. In the event that the Authority is unable to sustain its operations, it may request contributions from its members.

The Authority’s office and records are located at 14205 Meridian Parkway, Suite 140, Riverside, California 92518. As of June 30, 2018, the latest financial information obtained from the Authority is as follows:

Assets and Deferred Outflows of Resources $ 209,561,197 Liabilities and Deferred Inflows of Resources $ 9,292,465 Net Position $ 200,268,732 Revenues $ 12,611,251 Expenditures (14,022,654) Changes in Net Position $ (1,411,403)

17) RISK MANAGEMENT The City maintains a self-insurance program for workers' compensation. For workers' compensation claims, the City is at

risk for up to $250,000 per occurrence, amounts in excess of $250,000 are covered through PERMA. The limits of the coverage are $200,000 per accident for workers’ compensation and $5,000,000 each accident for employers’ liability. Estimates for all liabilities including an estimate for incurred but not reported claims, have been included in the long-term liabilities as claims payable, if any (See Note 6).

PERMA was created under a joint exercise of powers agreement for the purpose of providing insurance coverage for its

members. The governing Board of Directors consists of one member from each participating agency. PERMA also provides a non-risk sharing "deductible", or banking, pool for claims within the SIR level. Annual

contributions are deposited with the PERMA from which claims are paid. Any excess funds held by PERMA for the City at year-end are recorded as “Deposits with Other Agencies” within the general fund. Any deficit funds are recorded as a liability within the general fund. At June 30, 2018, the City had an excess of funds of $740,528 for such claims.

Under the liability programs risk-sharing pool, each member's share of total claims liabilities, including IBNR's, is

determined by the application of risk factors to specific characteristics of each member which provides the relative share of each member in total losses of PERMA. These losses are paid from premiums charged to the members which are established at levels to fund all claims costs.


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82

17) RISK MANAGEMENT - Continued

Changes in the balances of claims liabilities during the past two years are as follows:

Year Ended Year Ended June 30, 2018 June 30, 2017 Claims Payable, Beginning of Year $ 0 $ 0 Incurred Claims (Including IBNRs) 21,302 (2,149) Claim Payments (21,302) (2,149) Claims Payable, End of Year $ 0 $ 0

The workers' compensation insurance program is a non-risk sharing program. Therefore, each member is directly charged

for any losses incurred. Each member's equity represents accumulated contributions held by PERMA on the member's behalf. Any deficits created for losses in excess of assets available for a given member is funded over a ten year period through an adjustment to required premiums. During the past three fiscal years none of the above programs of protection have had settlements or judgements that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. The aforementioned information is not included in the accompanying financial statements. Separate financial statements of PERMA may be obtained at 36-951 Cook Street, Suite 101, Palm Desert, California, 92211.

18) COMMITMENTS AND CONTINGENCIES

As of June 30, 2018, there were no significant encumbrances. 19) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the

dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Perris (City) that previously had reported a redevelopment agency within the reporting entity as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On March 29, 2011, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 4383. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.


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83

19) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY - Continued After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot

enter into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets can only be pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments. In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

Successor Agency Capital Assets The remaining capital assets, as of June 30, 2018 is $335,048 which consists of land. Successor Agency Long-term Obligations The following is a summary of the changes in the Successor Agency long-term obligations for the year:

Beginning Ending Balance Additions Deletions Balance Pass-through Agreements $ 7,994 $ $ 7,994 $ 0Loans Payable to PFA 65,580,000 2,010,000 63,570,000Loan Premiums 2,571,505 152,917 2,418,588 $ 68,159,499 $ 0 $ 2,170,911 $ 65,988,588

Loans Payable to Public Financing Authority

The City of Perris Public Financing Authority (the "Authority") has issued Tax Allocation Revenue Bonds for financing projects of the Agency and to provide funds for the various debt obligations of the Agency. The Agency has entered into loan agreements with the Authority which mirror the bonds issued by the Authority. Concurrent with the execution and delivery of the loan agreements, the Authority issued the aggregate principal amount of its Tax Allocation Revenue Bonds to the Agency. The loans were made as an advance for the principal amount which was made from the proceeds of the bonds on the closing date of the bond. The principal and interest are payable in installment payments payable not less than three business days prior to the due date on the bonds. See Note 4 loans receivable for the related bond issues of the Authority.

The following table represents the balance of net proceeds loaned to the Successor Agency at the end of the year:

Amount Loans Receivable Issued End of Year 2009 Series A Issue $ 4,055,000 $ 3,485,000 2009 Series B Issue 7,605,000 6,955,000 2009 Series C Issue 5,490,000 4,930,000 2010 Series A Issue 7,180,000 6,960,000 2015 Series A Issue 21,590,000 19,665,000 2015 Series B Issue 23,120,000 21,575,000 Total $ 69,040,000 $ 63,570,000


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84

19) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY - Continued Loans Payable to Public Financing Authority - Continued

The balance at June 30, 2018, of the accounts with retained funds is $6,285,026 by the Authority and is reflected as deposits in the fiduciary fund statements.

Contingencies Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to

the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorable to the City.

20) SUBSEQUENT EVENTS

On August 30, 2018, the Successor Agency to the Redevelopment Agency of the City of Perris issued $13,925,000 Subordinate Tax Allocation Refunding Bonds, Series 2018, to advance refund the Authority’s 2009 Tax Allocation Revenue Bonds, Series A, B and C. Interest on the bonds is payable October 1st and April 1st of each year. Interest on the bonds accrues at rates varying from 2.92% to 4.32% per annum. Principal on the serial bonds is payable in annual installments ranging from $350,000 to $1,515,000 commencing October 1, 2019 through October 1, 2039. On November 29, 2018, the Authority issued $4,980,000 2018 Local Agency Revenue Bonds, Series A, to acquire CFD 2014-1 (Avelina) IA 3 Special Tax Bonds. Interest on the bond is payable September 1st and March 1st of each year. Interest on the bonds accrues at rates varying from 3.00% to 5.00% per annum. Principal on serial bonds is payable in annual installments ranging from $15,000 to $395,000, commencing September 1, 2019 through September 1, 2037.

21) PRIOR PERIOD ADJUSTMENTS

The Statement of Activities has a prior period adjustment of $7,189,031 to adjust the beginning balance of the net OPEB liability. The prior period adjustment was based on the most current actuarial valuation due to the implementation of GASB Statement No. 75 for post-employment benefits other than pensions.

22) SPECIAL ITEMS

During the fiscal year, the City had a $894,677 vendor fraud occur. The City has submitted a claim to its insurance but the insurance recovery amount has yet to be determined and remitted to the City. The Authority and the McCanna Ranch Water Company entered into a settlement agreement on the remaining $4,410,000 second payment on the note payable (see Note 6). As part of the agreement, the Authority agreed to pay the Company $2,079,000 and the remaining $2,331,000 outstanding principal balance would be forgiven.

REQUIRED SUPPLEMENTARY INFORMATION

85

City of Perris, California Schedule of the City’s Proportionate Share of the Net Pension Liability

CalPERS Pension Plan Last Ten Years*

As of June 30, 2018

Proportionate Share Plan Fiduciary of the Net Pension Net Position as a Proportion of the Proportionate Share Liability as a Percentage of the

Fiscal Net Pension of the Net Pension Percentage of Total Pension Year Liability Liability Covered Payroll Covered Payroll Liability

2015 0.09315% $ 5,795,969 $ 4,397,129 131.81% 85.26% 2016 0.12102% $ 8,306,618 $ 4,990,311 166.45% 79.63% 2017 0.12757% $ 11,038,624 $ 5,409,554 204.06% 74.89% 2018 0.13067% $ 12,958,547 $ 5,611,052 230.95% 73.67%

Notes to Schedule: Benefit Changes. In 2018, there was no benefit terms modified. Changes in Assumptions. In 2018 (for the 2017 measurement date valuation), the discount rate was reduced from 7.65 percent to 7.15 percent. Plan’s Fiduciary Net Position. The Plan’s Fiduciary Net Position is based on the City’s proportionate share of the CalPERS Miscellaneous Risk Pool. *- Fiscal year 2015 was the 1st year of implementation, therefore only four years are shown.

86

City of Perris, California Schedule of Contributions

CalPERS Pension Plan Last Ten Years*

As of June 30, 2018

Contractually Contributions in Required Relation to the Contribution Actuarially Contributions as a

Fiscal (Actuarially Determined Contribution Percentage of Year Determined) Contribution Deficiency (Excess) Covered Payroll Covered Payroll

2015 $ 595,585 $ (595,585) $ 0 $ 4,990,311 11.93% 2016 $ 807,195 $ (807,195) $ 0 $ 5,409,554 14.92% 2017 $ 883,205 $ (883,205) $ 0 $ 5,611,052 15.74% 2018 $ 1,045,038 $ (1,045,038) $ 0 $ 6,546,032 15.96%

*- Fiscal year 2015 was the 1st year of implementation, therefore only four years are shown.

87

City of Perris, California Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios

For the Measurement Periods Ended June 30

Measurement Period 2018

Total OPEB Liability

Service Cost $ 476,039 Interest on the Total OPEB Liability 570,709 Actual and Expected Experience Difference 0 Changes in Assumptions 0 Changes in Benefit Terms 0 Benefit Payments (629,983) Net Change in Total OPEB Liability 416,765 Total OPEB Liability - Beginning 15,691,992

Total OPEB Liability - Ending (a) $ 16,108,757 Plan Fiduciary Net Position Contribution - Employer $ 0 Net Investment Income 0 Benefit Payments 0 Administrative Expense 0 Net Change in Plan Fiduciary Net Position 0 Plan Fiduciary Net Position - Beginning 0

Plan Fiduciary Net Position - Ending (b) $ 0 Net OPEB Liability (Asset) - Ending (a)-(b) $ 16,108,757

Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 0% Covered-employee Payroll $ 6,121,988 Net OPEB Liability as a Percentage of Covered-employee Payroll 263.13%

Notes to Schedule: Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information becomes available.

88

City of Perris, California Schedule of Contributions

Retiree Health Benefit Plan Last Ten Fiscal Years

As of June 30, 2018

Fiscal Year Ended June 30, 2018 Actuarially Determined Contribution (ADC) $ N/A Contributions in Relation to the ADC N/A Contribution Deficiency (Excess) $ N/A

Covered-Employee Payroll N/A Contributions as a percentage of covered-employee payroll N/A

Notes to Schedule: For the fiscal year 2018, the City did not have an actuarially determined contribution (ADC) calculated. Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information become available.

Variance withFinal Budget

Actual PositiveOriginal Final Amounts (Negative)

REVENUESTaxes 29,575,578$ 36,093,055$ 38,066,668$ 1,973,613$ Licenses, Permits and Fees 2,325,005 2,821,660 2,843,814 22,154Intergovernmental Revenues 25,346 37,771 219,609 181,838Charges for Services 551,060 643,453 799,677 156,224Fines, Forfeitures and Penalties 799,503 655,527 625,257 (30,270)Developer Fees 189,000 324,000 549,815 225,815Investment Earnings 580,231 400,000 421,714 21,714Contributions 2,303,320 2,503,320 2,502,482 (838)Miscellaneous 140,271 344,767 79,348 (265,419)

Total Revenues 36,489,314 43,823,553 46,108,384 2,284,831


General Government 8,307,216 10,752,308 9,584,019 1,168,289Public Safety 25,450,908 26,053,548 23,575,606 2,477,942Public Works 2,231,893 2,513,426 1,899,348 614,078Parks and Recreation 3,881,874 4,138,513 3,527,899 610,614

Capital Outlay 337,000 403,210 280,331 122,879

Total Expenditures 40,208,891 43,861,005 38,867,203 4,993,802

Excess (Deficiency) of Revenuesover Expenditures (3,719,577) (37,452) 7,241,181 7,278,633

OTHER FINANCING SOURCES (USES)Transfers In 925,000 925,000 925,000 0Transfers Out (742,285) (742,285) (835,689) (93,404)Sale of Capital Assets 4,875 37,034 32,159

Total Other FinancingSources (Uses) 182,715 187,590 126,345 (61,245)

Net Change in Fund Balances (3,536,862)$ 150,138$ 7,367,526 7,217,388$

Fund Balance - Beginning 27,387,985

Fund Balance - Ending 34,755,511$

Budgeted Amounts

City of Perris, CaliforniaSchedule of Revenues, Expenditures and Changes in Fund Balances

Budget and Actual - General FundYear Ended June 30, 2018

89



REVENUESDeveloper Fees 5,000,000$ 5,000,000$ 26,940,938$ 21,940,938$ Investment Earnings 8,000 8,000 116,566 108,566

Total Revenues 5,008,000 5,008,000 27,057,504 22,049,504


Public Works 75,000 75,000 75,000Capital Outlay 10,226,320 25,698,677 2,976,838 22,721,839


Excess (Deficiency) of Revenues over Expenditures (5,293,320)$ (20,765,677)$ 24,080,666 44,846,343$



Budgeted Amounts


Budget and Actual - Road and Bridge Benefit District Special Revenue FundYear Ended June 30, 2018

90

City of Perris, California Notes to Required Supplementary Information


91

1. BUDGETARY DATA Revenues and expenditures accounted for in the governmental funds are controlled by a formal integrated budgetary

accounting system in accordance with various legal requirements which govern the City's operations. Budgets have been adopted on a basis consistent with accounting principles generally accepted in the United States of

America (GAAP) for nearly all governmental funds. Budgetary control is exercised at the departmental level. Accordingly, department heads are authorized to make transfers

between budgeted line items within their respective departments. Interdepartmental transfers within funds require City Manager authorization (without approval by the City Council); all other changes to the budget must be authorized by the City Council.

SUPPLEMENTARY SCHEDULES

NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds:

Asset Forfeiture - is used to account for proceeds of assets seized and disbursement of these funds for authorized public safety activities. AQMD Air Pollution Program - is used to account for AB2766 Subvention revenues and expenditures related to the reduction of vehicular emissions according to South Coast Air Quality Management District guidelines. Traffic Safety - is used to account for monies received under federal and state programs to enforce traffic safety laws. City-wide Lighting District - is used to account for funds received from assessment fees thru property tax collections from individual property owners and the expenditures for the lighting, maintenance and improvements of the City. Lighting District No. 84-1 - is used to account for funds received from assessment fees thru property tax collections from individual property owners and the expenditures for lighting maintenance and improvements. Landscape Maintenance District - is used to account for funds received from assessment fees thru property tax collections from individual property owners and the expenditures for the maintenance and new landscape improvements. Flood Control Maintenance District - is used to account for funds received from assessment fees thru property tax collections from individual property owners and the expenditures for flood control maintenance and improvements. Gas Tax - is used to account for the revenues and expenditures received from the State of California under the Street and Highway Code. The allocations must be spent for street maintenance and construction and a limited amount for engineering. Sidewalk Grant SB821 - is used to account for the revenues received from the SB821 grant and expenditures for sidewalk improvements. RMRA Grant - is used to account for funds received and expenditures for the road maintenance and rehabilitation account (RMRA) under SB1. Proposition “A” - is used to account for the revenues and expenditures received for the portion of the half-cent County-wide sales surtax levied to fund transportation improvements to local streets. CDBG Entitlement - is used to account for federal grant monies received directly from the Department of Housing and Urban Development State Grants - is used to account for monies received for miscellaneous state grants and expenditures. Federal Grants - is used to account for monies received for miscellaneous federal grants and expenditures. Development Fees - is used to account for funds received to mitigate the impact of new development on the City's infrastructure. HUD NSP-3 - is used to account for the receipt of intergovernmental funds to stabilize and revitalize areas within the community.

Special Revenue Funds - Continued

HOME Grant Program - is used to account for the receipts of intergovernmental funds to provide affordable housing for low income individuals. Local Health Grant - is used to account for the revenues received from the County of Riverside, Department of Public Health, to provide nutrition education services.

Capital Project Funds:

Construction - is used to account for miscellaneous construction and rehabilitation projects. Railway Depot Restoration - is used to account for the revenues and expenditures for the restoration of the historic Santa Fe Depot in downtown Perris, including a seismic retrofit, refurbishment of the roof, and other structural, mechanical, electrical, and aesthetic improvements. Community Facilities District 06-2 - is used to account for the capital projects for the 2006-2 Monument Park Estates, 2015 Special Tax Bonds. Community Facilities District 05-4 - is used to account for the capital projects for the 2005-4 Stratford Ranch, 2015 Special Tax Bonds, Series A. Community Facilities District 14-1 IA1 - is used to account for the capital projects for the 2014-1 Avelina Improvement Area No. 1, 2017 Special Tax Bonds. Community Facilities District 14-1 IA2 - is used to account for the capital projects for the 2014-1 Avelina Improvement Area No. 2, 2018 Special Tax Bonds, Series A.

AQMD Air City-wideAsset Pollution Traffic Lighting

Forfeiture Program Safety District

ASSETSCash and Investments $ 196,124$ 1,449,165$ 1,932,744$ Cash and Investments with Fiscal AgentReceivables:

Accounts 924 Interest 350 2,102 2,746 Taxes 20,097 13,732 Loans

Due from Other Governments 24,935 40,881

Total Assets 0$ 221,409$ 1,513,169$ 1,949,222$

LIABILITIES Accounts Payable and Accrued Liabilities $ $ 88,679$ 24,012$ Advances from Other Funds 22,849 Unearned Revenues

Total Liabilities 22,849 0 88,679 24,012

DEFERRED INFLOWS OF RESOURCESUnavailable Revenue - Special Assessments 4,713 Unavailable Revenue - Intergovernmental Unavailable Revenue - Miscellaneous 924

Total Deferred Inflows of Resources 0 0 924 4,713

FUND BALANCESRestricted 221,409 1,423,566 1,920,497Unassigned (22,849)

Total Fund Balances (22,849) 221,409 1,423,566 1,920,497

Total Liabilities, Deferred Inflows ofResources and Fund Balances 0$ 221,409$ 1,513,169$ 1,949,222$

Special Revenue

City of Perris, CaliforniaCombining Balance Sheet

Non-major Governmental FundsJune 30, 2018

92

Lighting Landscape Flood ControlDistrict No. Maintenance Maintenance Gas Sidewalk Grant

84-1 District District Tax SB 821

1,398,194$ 4,491,496$ 8,691,851$ 6,200,016$ $

1,832 68,731 1,894 6,124 12,386 8,818

16,400 37,627 20,163

1,416,488$ 4,535,247$ 8,726,232$ 6,208,834$ 68,731$

120,448$ 284,445$ 125,448$ 17,370$ 834$ 67,650

34,922

155,370 284,445 125,448 17,370 68,484

5,401 12,114 7,085

5,401 12,114 7,085 0 0

1,255,717 4,238,688 8,593,699 6,191,464 247

1,255,717 4,238,688 8,593,699 6,191,464 247

1,416,488$ 4,535,247$ 8,726,232$ 6,208,834$ 68,731$

Continued

Special Revenue

93

RMRA Proposition CDBGGrant "A" Entitlement State Grants

ASSETSCash and Investments 369,268$ 4,018,832$ $ $ Cash and Investments with Fiscal AgentReceivables:

Accounts 452 Interest 441 6,159 Taxes 160,528 387,876 Loans

Due from Other Governments 87,285 386,960

Total Assets 530,689$ 4,412,867$ 87,285$ 386,960$

LIABILITIESAccounts Payable and Accrued Liabilities 22,530$ 47,016$ 39,085$ 6,083$ Advances from Other Funds 107,537 176,881 Unearned Revenues

Total Liabilities 22,530 47,016 146,622 182,964

DEFERRED INFLOWS OF RESOURCESUnavailable Revenue - Special Assessments Unavailable Revenue - Intergovernmental 16,280 380,163Unavailable Revenue - Miscellaneous

Total Deferred Inflows of Resources 0 0 16,280 380,163

FUND BALANCESRestricted 508,159 4,365,851Unassigned (75,617) (176,167)

Total Fund Balances 508,159 4,365,851 (75,617) (176,167)

Total Liabilities, Deferred Inflows ofResources and Fund Balances 530,689$ 4,412,867$ 87,285$ 386,960$

Special Revenue

City of Perris, CaliforniaCombining Balance Sheet - Continued


94

HOME LocalFederal Development HUD Grant HealthGrants Fees NSP-3 Program Grant

$ 17,021,437$ 233,897$ 96,270$ $

25,416 342 10,013

132,610 313,477 53,504

313,477$ 17,046,853$ 234,239$ 238,893$ 53,504$

18,020$ 863,292$ $ $ 11,675$ 436,478 91,387

454,498 863,292 0 0 103,062

313,477

313,477 0 0 0 0

16,183,561 234,239 238,893(454,498) (49,558)

(454,498) 16,183,561 234,239 238,893 (49,558)

313,477$ 17,046,853$ 234,239$ 238,893$ 53,504$

Continued

Special Revenue

95

Railway Community Community Depot Facilities Facilities

Construction Restoration District 06-2 District 05-4

ASSETSCash and Investments 24,822$ 129,498$ $ $ Cash and Investments with Fiscal Agent 44 95 Receivables:

Accounts Interest 12 189 Taxes Loans

Due from Other Governments

Total Assets 24,834$ 129,687$ 44$ 95$

LIABILITIESAccounts Payable and Accrued Liabilities 24,810$ $ $ Advances from Other Funds Unearned Revenues

Total Liabilities 24,810 0 0 0

DEFERRED INFLOWS OF RESOURCESUnavailable Revenue - Special AssessmentsUnavailable Revenue - Intergovernmental Unavailable Revenue - Miscellaneous

Total Deferred Inflows of Resources 0 0 0 0

FUND BALANCESRestricted 24 129,687 44 95Unassigned

Total Fund Balances 24 129,687 44 95

Total Liabilities, Deferred Inflows ofResources and Fund Balances 24,834$ 129,687$ 44$ 95$

Capital Project

City of Perris, CaliforniaCombining Balance Sheet - Continued


96

TotalCommunity Community Non-major

Facilities Facilities Governmental14-1 IA1 14-1 IA2 Funds

$ $ 46,253,614$ 744 2,072,382 2,073,265

71,939 76,992

656,423 132,610 907,042

744$ 2,072,382$ 50,171,885$

$ $ 1,693,747$ 902,782

34,922

0 0 2,631,451

29,313 709,920

924

0 0 740,157

744 2,072,382 47,578,966 (778,689)

744 2,072,382 46,800,277

744$ 2,072,382$ 50,171,885$

Capital Project

97

AQMD Air City-wideAsset Pollution Traffic Lighting

Forfeiture Program Safety District

REVENUESIntergovernmental Revenues $ 121,064$ 190,835$ $ Fines, Forfeitures and Penalties 273,800 Developer Fees Investment Earnings 439 3,238 4,107 Special Assessments 393,882 ContributionsMiscellaneous 12,523

Total Revenues 0 121,503 480,396 397,989


General Government Public Safety 22,849 742,781 Public Works 146,678

Capital Outlay 157,916

Total Expenditures 22,849 157,916 742,781 146,678

Excess (Deficiency) of Revenues Over Expenditures (22,849) (36,413) (262,385) 251,311

OTHER FINANCING SOURCES (USES)Transfers In Transfers Out Sale of Capital Assets

Total Other Financing Sources (Uses) 0 0 0 0

Net Change in Fund Balances (22,849) (36,413) (262,385) 251,311

Fund Balances - Beginning 0 257,822 1,685,951 1,669,186

Fund Balances - Ending (22,849)$ 221,409$ 1,423,566$ 1,920,497$

City of Perris, CaliforniaCombining Statement of Revenues, Expenditures and Changes in Fund Balances

Non-major Governmental FundsYear Ended June 30, 2018

Special Revenue

98

Lighting Landscape Flood ControlDistrict No. Maintenance Maintenance Gas Sidwalk Grant

84-1 District District Tax SB 821

$ $ $ 1,509,730$ 68,731$

3,000 9,545 18,683 13,128 875,684 2,260,375 1,575,226

68,250 42,000 47,250

946,934 2,311,920 1,641,159 1,522,858 68,731

897,320 1,973,748 618,608 207,247 68,484

897,320 1,973,748 618,608 207,247 68,484

49,614 338,172 1,022,551 1,315,611 247

130,190 (925,000)

0 0 0 (794,810) 0

49,614 338,172 1,022,551 520,801 247

1,206,103 3,900,516 7,571,148 5,670,663 0

1,255,717$ 4,238,688$ 8,593,699$ 6,191,464$ 247$

Continued

Special Revenue

99

RMRA Proposition CDBG Grant "A" Entitlement State Grants

REVENUESIntergovernmental Revenues 529,899$ 1,624,087$ 734,208$ 969,640$ Fines, Forfeitures and Penalties Developer Fees Investment Earnings 790 8,453 (29) Special Assessments ContributionsMiscellaneous

Total Revenues 530,689 1,632,540 734,208 969,611


General Government 371,739 Public Safety Public Works 22,530 700 35,831

Capital Outlay 2,194,078 242,476 540,548

Total Expenditures 22,530 2,194,778 614,215 576,379

Excess (Deficiency) of Revenues Over Expenditures 508,159 (562,238) 119,993 393,232

OTHER FINANCING SOURCES (USES)Transfers In Transfers Out Sale of Capital Assets

Total Other Financing Sources (Uses) 0 0 0 0

Net Change in Fund Balances 508,159 (562,238) 119,993 393,232

Fund Balances - Beginning 0 4,928,089 (195,610) (569,399)

Fund Balances - Ending 508,159$ 4,365,851$ (75,617)$ (176,167)$

City of Perris, CaliforniaCombining Statement of Revenues, Expenditures and Changes in Fund Balances - Continued

Non-major Governmental FundsYear Ended June 30, 2018

Special Revenue

100

HOME LocalFederal Development HUD Grant HealthGrants Fees NSP-3 Program Grant

319,279$ $ $ 212,372$ 207,921$ 2,737,824 38,447 509 2,814

319,279 2,776,271 509 215,186 207,921

221,399

417,003 1,442 1,750,110

417,003 1,750,110 0 1,442 221,399

(97,724) 1,026,161 509 213,744 (13,478)

(130,190)

62,014

(130,190) 62,014 0 0 0

(227,914) 1,088,175 509 213,744 (13,478)

(226,584) 15,095,386 233,730 25,149 (36,080)

(454,498)$ 16,183,561$ 234,239$ 238,893$ (49,558)$

Continued

Special Revenue

101

Railway Community Community Depot Facilities Facilities

Construction Restoration District 06-2 District 05-4

REVENUESIntergovernmental Revenues $ $ $ Fines, Forfeitures and Penalties Developer Fees Investment Earnings 24 281 1 Special Assessments ContributionsMiscellaneous

Total Revenues 24 281 0 1


General Government Public Safety Public Works

Capital Outlay 289,702

Total Expenditures 289,702 0 0 0

Excess (Deficiency) of Revenues Over Expenditures (289,678) 281 0 1

OTHER FINANCING SOURCES (USES)Transfers In 289,702 Transfers Out Sale of Capital Assets

Total Other Financing Sources (Uses) 289,702 0 0 0

Net Change in Fund Balances 24 281 0 1

Fund Balances - Beginning 0 129,406 44 94

Fund Balances - Ending 24$ 129,687$ 44$ 95$

Year Ended June 30, 2018Non-major Governmental Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances - ContinuedCity of Perris, California

Capital Project

102

TotalCommunity Community Non-major

Facilities Facilities Governmental14-1 IA1 14-1 IA2 Funds

$ $ 6,487,766$ 273,800

2,737,824 19,764 8,017 131,211

5,105,167 3,855,000 3,855,000

170,023

19,764 3,863,017 18,760,791

593,138 765,630

4,113,860 4,024,020 1,790,635 11,265,216

4,024,020 1,790,635 16,737,844

(4,004,256) 2,072,382 2,022,947

419,892 (1,055,190)

62,014

0 0 (573,284)

(4,004,256) 2,072,382 1,449,663

4,005,000 0 45,350,614

744$ 2,072,382$ 46,800,277$

Capital Project

103



REVENUESInvestment Earnings 6,466,000$ 6,466,000$ 3,488,759$ (2,977,241)$ Contributions 17,738 17,738 Miscellaneous 51,510 51,510

Total Revenues 6,466,000 6,466,000 3,558,007 (2,907,993)


General Government 73,500 75,000 11,856 63,144Debt Service:

Debt Issuance Costs 75,000 (75,000)Principal Retirement 3,125,000 3,125,000 2,840,000 285,000Interest and Fiscal Charges 5,678,750 5,678,750 3,192,776 2,485,974


Excess (Deficiency) of Revenuesover Expenditures (2,411,250)$ (2,412,750)$ (2,561,625) (148,875)$



Budgeted Amounts

City of Perris, California

Year Ended June 30, 2018Budget and Actual - Public Financing Authority Debt Service FundSchedule of Revenues, Expenditures and Changes in Fund Balances

104



REVENUESInvestment Earnings 2,553,063$ 2,553,063$ 3,628,159$ 1,075,096$ Contributions 32,500 32,500 37,095 4,595 Miscellaneous 5,400 5,400

Total Revenues 2,585,563 2,585,563 3,670,654 1,085,091


General Government 34,750 50,200 27,250 22,950Debt Service:

Debt Issuance Costs 891,250 (891,250)Principal Retirement 3,629,750 5,074,750 5,680,000 (605,250)Interest and Fiscal Charges 5,233,863 6,192,763 4,150,625 2,042,138

Total Expenditures 8,898,363 11,317,713 10,749,125 568,588

Excess (Deficiency) of Revenuesover Expenditures (6,312,800) (8,732,150) (7,078,471) 1,653,679

OTHER FINANCING SOURCES (USES)Transfers Out 6,000 6,000 (6,000)Revenue Bonds Issued 26,585,000 26,585,000Revenue Refunding Bonds Issued 4,060,000 4,060,000Premiums on Revenue Refunding Bonds 2,426,442 2,426,442Discounts on Revenue Bonds Issued (7,161) (7,161)

Total Other Financing Sources (Uses) 6,000 6,000 33,064,281 33,058,281

Net Change in Fund Balances (6,306,800)$ (8,726,150)$ 25,985,810 34,711,960$




Budget and Actual - Joint Powers Authority Debt Service FundYear Ended June 30, 2018

Budgeted Amounts

105



REVENUESDeveloper Fees 40,000$ 40,000$ 2,893$ (37,107)$ Investment Earnings 16,000 16,000 (16,000)

Total Revenues 56,000 56,000 2,893 (53,107)

EXPENDITURESCapital Outlay 9,189,135 8,873,518 2,893 8,870,625

Total Expenditures 9,189,135 8,873,518 2,893 8,870,625

Excess (Deficiency) of Revenues over Expenditures (9,133,135)$ (8,817,518)$ 0 8,817,518$

Fund Balance - Beginning (2,967)

Fund Balance - Ending (2,967)$

Budgeted Amounts


Budget and Actual - Storm Drain Development Capital Project Fund Year Ended June 30, 2018

106



REVENUESIntergovernmental Revenues 14,203,874$ 17,464,734$ 4,233,872$ (13,230,862)$ Developer Fees 300,380 300,380 Investment Earnings 10,000 10,000 15,297 5,297

Total Revenues 14,213,874 17,474,734 4,549,549 (12,925,185)

EXPENDITURESCapital Outlay 20,720,845 26,044,716 6,240,509 19,804,207


Excess (Deficiency) of Revenues over Expenditures (6,506,971)$ (8,569,982)$ (1,690,960) 6,879,022$



Budgeted Amounts


Budget and Actual - Capital Improvement Projects Capital Project Fund Year Ended June 30, 2018

107



REVENUESFines, Forfeitures and Penalties 30,000$ 30,000$ $ (30,000)$

Total Revenues 30,000 30,000 0 (30,000)


Public Safety 30,000 30,000 22,849 7,151


Excess (Deficiency) of Revenues over Expenditures 0$ 0$ (22,849) (22,849)$

Fund Balance - Beginning 0



Budget and Actual - Asset Forfeiture Special Revenue FundYear Ended June 30, 2018

Budgeted Amounts

108



REVENUESIntergovernmental Revenues 80,000$ 80,000$ 121,064$ 41,064$ Investment Earnings 500 500 439 (61)

Total Revenues 80,500 80,500 121,503 41,003


General Government 250 250Capital Outlay 80,500 160,420 157,916 2,504


Excess (Deficiency) of Revenues over Expenditures 0$ (80,170)$ (36,413) 43,757$

Fund Balance - Beginning 257,822

Fund Balance - Ending 221,409$

Budgeted Amounts


Budget and Actual - AQMD Air Pollution Program Special Revenue FundYear Ended June 30, 2018

109



REVENUESIntergovernmental Revenues 115,000$ 203,875$ 190,835$ (13,040)$ Fines, Forfeitures and Penalties 220,000 220,000 273,800 53,800Investment Earnings 3,000 3,000 3,238 238Miscellaneous 12,523 12,523

Total Revenues 338,000 426,875 480,396 53,521


Public Safety 1,876,216 1,940,330 742,781 1,197,549


Excess (Deficiency) of Revenues over Expenditures (1,538,216)$ (1,513,455)$ (262,385) 1,251,070$



Budgeted Amounts


Budget and Actual - Traffic Safety Special Revenue FundYear Ended June 30, 2018

110



REVENUESInvestment Earnings 1,500$ 1,500$ 4,107$ 2,607$ Special Assessments 269,500 269,500 393,882 124,382

Total Revenues 271,000 271,000 397,989 126,989


Public Works 159,500 159,500 146,678 12,822


Excess (Deficiency) of Revenues over Expenditures 111,500$ 111,500$ 251,311 139,811$



Budgeted Amounts


Budget and Actual - City-Wide Lighting District Special Revenue FundYear Ended June 30, 2018

111



REVENUESInvestment Earnings 3,000$ 3,000$ 3,000$ 0$ Special Assessments 860,000 860,000 875,684 15,684Miscellaneous 20,000 20,000 68,250 48,250

Total Revenues 883,000 883,000 946,934 63,934


Public Works 1,056,212 1,070,934 897,320 173,614

Total Expenditures 1,056,212 1,070,934 897,320 173,614

Excess (Deficiency) of Revenues over Expenditures (173,212)$ (187,934)$ 49,614 237,548$



Budgeted Amounts


Budget and Actual - Lighting District No. 84-1 Special Revenue FundYear Ended June 30, 2018

112



REVENUESInvestment Earnings 6,500$ 6,500$ 9,545$ 3,045$ Special Assessments 1,900,000 1,900,000 2,260,375 360,375Miscellaneous 21,500 21,500 42,000 20,500

Total Revenues 1,928,000 1,928,000 2,311,920 383,920


Public Works 1,804,130 2,305,675 1,973,748 331,927

Total Expenditures 1,804,130 2,305,675 1,973,748 331,927

Excess (Deficiency) of Revenues over Expenditures 123,870$ (377,675)$ 338,172 715,847$



Budgeted Amounts


Budget and Actual - Landscape Maintenance District Special Revenue FundYear Ended June 30, 2018

113



REVENUESInvestment Earnings 16,000$ 16,000$ 18,683$ 2,683$ Special Assessments 1,535,000 1,535,000 1,575,226 40,226 Miscellaneous 5,500 5,500 47,250 41,750

Total Revenues 1,556,500 1,556,500 1,641,159 84,659


Public Works 1,632,640 1,689,388 618,608 1,070,780Capital Outlay 2,537,437 2,345,891 2,345,891


Excess (Deficiency) of Revenues over Expenditures (2,613,577)$ (2,478,779)$ 1,022,551 3,501,330$



Budgeted Amounts


Budget and Actual - Flood Control Maintenance District Special Revenue FundYear Ended June 30, 2018

114



REVENUESIntergovernmental Revenues 1,548,301$ 1,548,301$ 1,509,730$ (38,571)$ Investment Earnings 7,500 7,500 13,128 5,628

Total Revenues 1,555,801 1,555,801 1,522,858 (32,943)

EXPENDITURES Capital Outlay 2,453,583 2,127,688 207,247 1,920,441


Excess (Deficiency) of Revenues over Expenditures (897,782) (571,887) 1,315,611 1,887,498

OTHER FINANCING SOURCES (USES)Transfers In 130,190 130,190Transfers Out (925,000) (925,000) (925,000) 0

Total Other Financing Sources (Uses) (925,000) (925,000) (794,810) 130,190

Net Change in Fund Balances (1,822,782)$ (1,496,887)$ 520,801 2,017,688$



Budgeted Amounts


Budget and Actual - Gas Tax Special Revenue FundYear Ended June 30, 2018

115



REVENUESIntergovernmental Revenues 68,731$ 68,731$ 68,731$ 0$

Total Revenues 68,731 68,731 68,731 0

EXPENDITURESCapital Outlay 68,731 68,731 68,484 247

Total Expenditures 68,731 68,731 68,484 247

Excess (Deficiency) of Revenues over Expenditures 0$ 0$ 247 247$


Fund Balance - Ending 247$

City of Perris, CaliforniaSchedule of Revenues, Expenditures and Changes in Fund BalancesBudget and Actual - Sidewalk Grant SB 821 Special Revenue Fund


Budgeted Amounts

116



REVENUESIntergovernmental Revenues $ $ 529,899$ 529,899$ Investment Earnings 790 790

Total Revenues 0 0 530,689 530,689


Public Works 5,247,788 22,530 5,225,258

Total Expenditures 0 5,247,788 22,530 5,225,258

Excess (Deficiency) of Revenues over Expenditures 0$ (5,247,788)$ 508,159 5,755,947$




Budget and Actual - RMRA Grant Special Revenue FundYear Ended June 30, 2018

Budgeted Amounts

117



REVENUESIntergovernmental Revenues 1,444,000$ 1,444,000$ 1,624,087$ 180,087$ Investment Earnings 5,000 5,000 8,453 3,453

Total Revenues 1,449,000 1,449,000 1,632,540 183,540


Public Works 300,000 240,509 700 (239,809) Capital Outlay 4,676,592 6,248,336 2,194,078 4,054,258


Excess (Deficiency) of Revenues over Expenditures (3,527,592)$ (5,039,845)$ (562,238) 4,477,607$



Budgeted Amounts


Budget and Actual - Proposition "A" Special Revenue FundYear Ended June 30, 2018

118



REVENUESIntergovernmental Revenues 844,622$ 844,622$ 734,208$ (110,414)$

Total Revenues 844,622 844,622 734,208 (110,414)


General Government 295,616 429,363 371,739 57,624Capital Outlay 1,987,325 952,431 242,476 709,955

Total Expenditures 2,282,941 1,381,794 614,215 767,579

Excess (Deficiency) of Revenues over Expenditures (1,438,319)$ (537,172)$ 119,993 657,165$



Budgeted Amounts


Budget and Actual - CDBG Entitlement Special Revenue FundYear Ended June 30, 2018

119



REVENUESIntergovernmental Revenues 2,161,975$ 1,478,158$ 969,640$ (508,518)$ Investment Earnings 1,000 1,000 (29) (1,029)

Total Revenues 2,162,975 1,479,158 969,611 (509,547)


Public Works 48,751 35,831 12,920Capital Outlay 2,151,892 857,407 540,548 316,859

Total Expenditures 2,151,892 906,158 576,379 329,779

Excess (Deficiency) of Revenues over Expenditures 11,083$ 573,000$ 393,232 (179,768)$



Budgeted Amounts


Budget and Actual - State Grants Special Revenue FundYear Ended June 30, 2018

120



REVENUESIntergovernmental Revenues 763,368$ 763,368$ 319,279$ (444,089)$

Total Revenues 763,368 763,368 319,279 (444,089)


Public Works 763,368 618,260 417,003 201,257Capital Outlay 3,000,000 3,000,000

Total Expenditures 763,368 3,618,260 417,003 3,201,257

Excess (Deficiency) of Revenues over Expenditures 0 (2,854,892) (97,724) 2,757,168

OTHER FINANCING SOURCES (USES)Transfers Out (130,190) (130,190)

Total Other Financing Sources (Uses) 0 0 (130,190) (130,190)

Net Change in Fund Balances 0$ (2,854,892)$ (227,914) 2,626,978$




Budget and Actual - Federal Grants Special Revenue FundYear Ended June 30, 2018

Budgeted Amounts

121



REVENUESDeveloper Fees 481,000$ 481,000$ 2,737,824$ 2,256,824$ Investment Earnings 50,000 50,000 38,447 (11,553)

Total Revenues 531,000 531,000 2,776,271 2,245,271


General Government 39,643 39,644 39,644Capital Outlay 9,003,088 11,853,342 1,750,110 10,103,232


Excess (Deficiency) of RevenuesOver Expenditures (8,511,731) (11,361,986) 1,026,161 12,388,147

OTHER FINANCING SOURCES (USES)Sale of Capital Assets 62,014 62,014

Total Other Financing Sources (Uses) 0 0 62,014 62,014

Net Change in Fund Balances (8,511,731)$ (11,361,986)$ 1,088,175 12,450,161$



Budgeted Amounts


Budget and Actual - Development Fees Special Revenue FundYear Ended June 30, 2018

122



REVENUESInvestment Earnings 100$ 100$ 509$ 409$


EXPENDITURESCapital Outlay 305,173 305,173 305,173

Total Expenditures 305,173 305,173 0 305,173

Excess (Deficiency) of Revenuesover Expenditures (305,073)$ (305,073)$ 509 305,582$



Budgeted Amounts


Budget and Actual - HUD NSP-3 Special Revenue Fund Year Ended June 30, 2018

123



REVENUESIntergovernmental Revenues $ $ 212,372$ 212,372$ Investment Earnings 50 50 2,814 2,764

Total Revenues 50 50 215,186 215,136


Public Works 353,754 289,770 1,442 288,328


Excess (Deficiency) of Revenuesover Expenditures (353,704)$ (289,720)$ 213,744 503,464$



City of Perris, CaliforniaSchedule of Revenues, Expenditures and Changes in Fund BalancesBudget and Actual - HOME Grant Program Special Revenue Fund


Budgeted Amounts

124



REVENUESIntergovernmental Revenue 252,619$ 252,619$ 207,921$ (44,698)$

Total Revenues 252,619 252,619 207,921 (44,698)


General Government 252,619 244,232 221,399 22,833


Excess (Deficiency) of Revenues over Expenditures 0$ 8,387$ (13,478) (21,865)$




Budget and Actual - Local Health Grant Special Revenue Fund Year Ended June 30, 2018

Budgeted Amounts

125



REVENUESInvestment Earnings $ $ 24$ 24$


EXPENDITURESCapital Outlay 1,219,151 585,937 289,702 296,235

Total Expenditures 1,219,151 585,937 289,702 296,235

Excess (Deficiency) of Revenues over Expenditures (1,219,151) (585,937) (289,678) 296,259

OTHER FINANCING SOURCES (USES)Transfers In 496,000 289,702 (206,298)

Total Other Financing Sources (Uses) 0 496,000 289,702 (206,298)

Net Change in Fund Balances (1,219,151)$ (89,937)$ 24 89,961$



Budgeted Amounts


Budget and Actual - Construction Capital Project Fund Year Ended June 30, 2018

126



REVENUESInvestment Earnings 171$ 171$ 281$ 110$


EXPENDITURESCapital Outlay 0

Total Expenditures 0 0 0 0




Budgeted Amounts


Budget and Actual - Railway Depot Restoration Capital Project Fund Year Ended June 30, 2018

127



REVENUESInvestment Earnings $ $ $ 0$








Budget and Actual - Community Facilities District 06-2 Capital Project FundYear Ended June 30, 2018

Budgeted Amounts

128



REVENUESInvestment Earnings $ $ 1$ 1$







Budgeted Amounts


Budget and Actual - Community Facilities District 05-4 Capital Project FundYear Ended June 30, 2018

129



REVENUESInvestment Earnings $ $ 19,764$ 19,764$

Total Revenues 0 0 19,764 19,764

EXPENDITURESCapital Outlay 4,024,020 (4,024,020)

Total Expenditures 0 0 4,024,020 (4,024,020)

Excess (Deficiency) of Revenues over Expenditures 0$ 0$ (4,004,256) (4,004,256)$



Budgeted Amounts


Budget and Actual - Community Facilities District 14-1 IA1 Capital Project Fund Year Ended June 30, 2018

130



REVENUESInvestment Earnings $ $ 8,017$ 8,017$ Contributions 3,855,000 3,855,000

Total Revenues 0 0 3,863,017 3,863,017

EXPENDITURESCapital Outlay 1,790,635 (1,790,635)

Total Expenditures 0 0 1,790,635 (1,790,635)

Excess (Deficiency) of Revenues over Expenditures 0$ 0$ 2,072,382 2,072,382$




Budget and Actual - Community Facilities District 14-1 IA2 Capital Project Fund Year Ended June 30, 2018

Budgeted Amounts

131

AGENCY FUNDS

City Cash Trust Fund - is used to account for monies held for other organizations or private individuals. Community Facilities Districts - is used to account for the principal and interest payments for various Community Facilities Districts bonds. Assessment District 86-1 - is used to account for the principal and interest payments of the 1993 Series A, AD86-1 Improvement refunding bonds for use in the construction and improvements of the City’s infrastructure.

Community Total City Cash Facilities Assessment AgencyTrust Fund Districts District 86-1 Funds

ASSETSCash and Investments 1,019,090$ 8,364,330$ 52,601$ 9,436,021$ Cash and Investments with Fiscal Agent 10,626,089 10,626,089 Assessments Receivable 243,971 243,971 Interest Receivable 8,644 77 8,721 Other Receivable 158,967 158,967 Deposits 11,295,773 11,295,773

Total Assets 1,019,090$ 30,697,774$ 52,678$ 31,769,542$

LIABILITIES Accounts Payable and Accrued Liabilities 262,653$ 165,863$ 428,516$ Deposits 756,437 327,255 1,083,692 Due to Bondholders 30,204,656 52,678 30,257,334

Total Liabilities 1,019,090$ 30,697,774$ 52,678$ 31,769,542$

City of Perris, CaliforniaCombining Statement of Fiduciary Assets and Liabilities

Agency FundsJune 30, 2018

132

Beginning EndingBalance Additions Deletions Balance

ASSETSCash and Investments 2,348,466$ 2,321,045$ 3,650,421$ 1,019,090$

Total Assets 2,348,466$ 2,321,045$ 3,650,421$ 1,019,090$

LIABILITIESAccounts Payable and Accrued Liabilities 1,617,395$ 2,194,022$ 3,548,764$ 262,653$ Deposits 731,071 2,322,396 2,297,030 756,437

Total Liabilities 2,348,466$ 4,516,418$ 5,845,794$ 1,019,090$

City of Perris, CaliforniaStatement of Changes in Fiduciary Assets and Liabilities

Year Ended June 30, 2018City Cash Trust Fund

133


ASSETSCash and Investments 1,799,828$ 18,183,113$ 11,618,611$ 8,364,330$ Cash and Investments with Fiscal Agent 19,923,043 63,433,963 72,730,917 10,626,089 Assessments Receivable 222,324 266,262 244,615 243,971 Interest Receivable 9,416 8,904 9,676 8,644 Other Receivable 478,481 474,682 794,196 158,967 Deposits 11,285,140 1,062,065 1,051,432 11,295,773

Total Assets 33,718,232$ 83,428,989$ 86,449,447$ 30,697,774$

LIABILITIESAccounts Payable and Accrued Liabilities 1,152$ 1,165,256$ 1,000,545$ 165,863$ Deposits 1,923,634 3,561 1,599,940 327,255 Due to Other Government Agencies 494,055 494,055 0 Unearned Revenues 4,927 4,927 0 Due to Bondholders 31,294,464 82,786,275 83,876,083 30,204,656



Year Ended June 30, 2018Community Facilities Districts

134


ASSETSCash and Investments 52,501$ 158$ 58$ 52,601$ Interest Receivable 124 77 124 77

Total Assets 52,625$ 235$ 182$ 52,678$

LIABILITIESUnearned Revenues 61$ 61$ 0$ Due to Bondholders 52,564 235 121 52,678

Total Liabilities 52,625$ 235$ 182$ 52,678$


Year Ended June 30, 2018Assessment District 86-1

135


ASSETSCash and Investments 4,200,795$ 20,504,316$ 15,269,090$ 9,436,021$ Cash and Investments with Fiscal Agent 19,923,043 63,433,963 72,730,917 10,626,089 Assessments Receivable 222,324 266,262 244,615 243,971 Interest Receivable 9,540 8,981 9,800 8,721 Other Receivable 478,481 474,682 794,196 158,967 Deposits 11,285,140 1,062,065 1,051,432 11,295,773

Total Assets 36,119,323$ 85,750,269$ 90,100,050$ 31,769,542$

LIABILITIES Accounts Payable and Accrued Liabilities 1,618,547$ 3,359,278$ 4,549,309$ 428,516$ Deposits 2,654,705 2,325,957 3,896,970 1,083,692 Due to Other Government Agencies 494,055 0 494,055 0 Unearned Revenues 4,988 0 4,988 0 Due to Bondholders 31,347,028 82,786,510 83,876,204 30,257,334



Year Ended June 30, 2018Total Agency Funds

136

S o

0 \ a

S

STATISTICAL SECTION

This part of the City of Perris comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.

CONTENTS PAGE Financial Trends These schedules contain trend information to help the reader understand how the government’s

financial performance and well-being have changed over time.

137

Revenue Capacity These schedules contain information to help the reader assess the government’s most significant local

revenue source, the property tax.

147

Debt Capacity These schedules present information to help the reader assess the affordability of the government’s

current levels of outstanding debt and the government’s ability to issue additional debt in the future.

154

Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the

environment within which the government’s financial activities take place.

159

Operating Information These schedules contain service and infrastructure data to help the reader understand how the

information in the government’s financial report relates to the services the government provides and the activities it performs.

161

2009 2010 2011 2012 2013

Governmental activities

Net investment in capital assets 142,300$ 146,883$ 156,805$ 165,177$ 166,747$

Restricted 7,526 5,752 7,410 - -

Unrestricted 59,193 49,315 35,837 66,908 61,657

Total governmental activities net position 209,019$ 201,950$ 200,052$ 232,085$ 228,404$

Business-type activities


Restricted for Community Economic Development - - - - -

Restricted for Low and Moderate Housing - - - 6,785 8,715

Ristricted for Other Purposes - - - - -

Unrestricted 816 (908) (366) 1,412 2,561

Total business-type activities net position 9,190$ 8,778$ 9,003$ 16,465$ 17,883$

Primary government


Restricted 7,526 5,752 7,410 6,785 8,715

Unrestricted 60,009 48,407 35,471 68,320 64,218

Total primary government net position 218,209$ 210,728$ 209,055$ 248,550$ 246,287$

Source: City of Perris, Finance Department

Note: Due to the reclassification of the Perris Community Economic Development Fund from a Government ComponentUnit to an Enterprise Fund in 2017, the statements above includes a new category under the section "Business-type Activities"named: "Restricted for Community Economic Development." No adjustments to prior years have been made.

Fiscal Year

(in thousands of dollars)Page 1

City of PerrisNet Position by Component

Last Ten Fiscal Years(accrual basis of accounting)

137

2014 2015 2016 2017 2018

Governmental activities


Restricted 48,033 49,630 62,636 79,411 101,391

Unrestricted 22,595 10,899 12,523 8,056 6,580

Total governmental activities net position 237,293$ 230,975$ 249,276$ 267,797$ 297,404$

Business-type activities


Restricted for Community Economic Development - - - 4,299 3,224

Restricted for Low and Moderate Housing 6,023 5,854 5,758 5,848 4,734

Ristricted for Other Purposes - - - - 1,036

Unrestricted 3,116 (5,118) (3,736) (3,598) (7,301)

Total business-type activities net position 15,169$ 15,067$ 14,556$ 21,303$ 20,615$

Primary government


Restricted 54,056 55,484 68,394 89,558 110,385

Unrestricted 25,711 5,781 8,787 4,458 (721)

Total primary government net position 252,462$ 246,042$ 263,832$ 289,100$ 318,019$


Note: Due to the reclassification of the Perris Community Economic Development Fund from a Government ComponentUnit to an Enterprise Fund in 2017, the statements above includes a new category under the section "Business-type Activities"named: "Restricted for Community Economic Development." No adjustments to prior years have been made.

Fiscal Year


City of PerrisNet Position by Component


138

2009 2010 2011 2012 2013

Expenses

Governmental activities:

General Government 7,557$ 7,383$ 6,718$ 6,338$ 7,363$

Public Safety 16,292 16,269 16,155 16,575 17,072

Public Works 32,996 22,462 19,661 17,620 12,897

Parks and Recreation 2,607 2,257 2,144 2,246 2,471

Interest on Long-term Debt 6,937 7,879 8,045 7,897 7,689

State ERAF - 3,771 776 - -

Total governmental activities expenses 66,389 60,021 53,499 50,676 47,492

Business-type activities:

Water Utility 2,314 2,745 2,390 2,507 2,750

Sewer Utility 1,540 1,483 1,638 1,691 1,760

Public Utility 611 977 927 955 1,088

Solid Waste Utility 550 565 596 627 890

Perris CEDC - - - - -

Housing Authority - - - 54 420

Total business-type activities expenses 5,015 5,770 5,551 5,834 6,908

Total primary government expenses 71,404$ 65,791$ 59,050$ 56,510$ 54,400$

Program Revenues


Charges for services:

General Government 765$ 1,054$ 746$ 948$ 978$

Public Safety 755 856 804 865 909

Public Works 7,180 6,902 4,895 5,139 9,456

Parks and Recreation 202 211 232 247 215

Operating Grants and Contributions 3,804 3,792 7,320 8,358 11,633

Capital Grants and Contributions 3,457 5,349 4,276 10,639 4,543

Total governmental activities program revenues 16,163 18,164 18,273 26,196 27,734



Water Utility 2,039 2,374 2,588 2,693 2,809

Sewer Utility 1,558 1,538 1,619 1,678 1,737

Public Utility 286 569 556 573 599

Solid Waste Utility 679 695 703 723 835

Perris CEDC - - - - -

Housing Authority - - - 22 29

Operating Grants and Contributions - - - - -

Capital Grants and Contributions 5 - - - 2,333

Total business-type activities program revenues 4,567 5,176 5,466 5,689 8,342

Total primary government program revenues 20,730$ 23,340$ 23,739$ 31,885$ 36,076$

Net (expense)/revenue

Governmental activities (50,226)$ (41,857)$ (35,226)$ (24,480)$ (19,758)$

Business-type activities (448) (594) (85) (145) 1,434

Total primary government net (expense)/revenue (50,674)$ (42,451)$ (35,311)$ (24,625)$ (18,324)$


Page 1

City of PerrisChange in Net PositionLast Ten Fiscal Years

(in thousands of dollars)(accrual basis of accounting)

Fiscal Year

139

2014 2015 2016 2017 2018

Expenses



Public Safety 18,618 20,286 22,586 22,936 24,648

Public Works 10,177 15,570 17,238 12,808 20,141

Parks and Recreation 3,071 3,494 3,601 3,874 4,319

Interest on Long-term Debt 7,343 7,060 6,457 6,996 7,688

State ERAF - - - - -

Total governmental activities expenses 47,689 56,250 60,503 56,045 69,613


Water Utility 2,972 2,933 2,646 2,855 3,089

Sewer Utility 1,828 2,072 2,101 2,134 2,364

Public Utility 976 2,049 1,152 1,182 1,215

Solid Waste Utility 1,223 1,301 1,376 1,172 1,201

Perris CEDC - - - 1,448 1,163

Housing Authority 3,329 669 801 792 919

Total business-type activities expenses 10,328 9,024 8,076 9,583 9,951

Total primary government expenses 58,017$ 65,274$ 68,579$ 65,628$ 79,564$

Program Revenues




Public Safety 1,039 1,116 1,230 1,342 1,138

Public Works 9,104 5,986 22,446 18,848 35,386

Parks and Recreation 144 179 173 183 201

Operating Grants and Contributions 11,864 12,645 17,883 11,150 12,996

Capital Grants and Contributions 7,468 14,367 7,668 15,363 16,115

Total governmental activities program revenues 31,478 36,636 51,943 49,612 69,188



Water Utility 3,110 2,783 2,505 2,692 2,919

Sewer Utility 1,832 1,806 1,913 2,038 2,094

Public Utility 800 968 874 920 975

Solid Waste Utility 1,136 1,147 1,132 1,185 1,308

Perris CEDC - - - 91 81

Housing Authority 132 101 80 310 293

Operating Grants and Contributions 400 - - - -

Capital Grants and Contributions 61 40 399 2,363 -

Total business-type activities program revenues 7,471 6,845 6,903 9,599 7,670

Total primary government program revenues 38,949$ 43,481$ 58,846$ 59,211$ 76,858$

Net (expense)/revenue

Governmental activities (16,211)$ (19,614)$ (8,560)$ (6,433)$ (425)$

Business-type activities (2,856) (2,178) (1,172) 16 (2,281)

Total primary government net (expense)/revenue (19,067)$ (21,792)$ (9,732)$ (6,417)$ (2,706)$


Page 2(in thousands of dollars)

Fiscal Year

City of PerrisChange in Net PositionLast Ten Fiscal Years

(accrual basis of accounting)

140

2009 2010 2011 2012 2013

General Revenues and Other Changes in

Net Position

Government activities:

Taxes

Property taxes 19,532$ 16,285$ 14,368$ 6,406$ 4,270$

Sales and use taxes 4,934 4,264 4,594 5,624 5,682

Motor Vehicle in-lieu taxes 183 160 266 35 36

Vehicle License Fee in Lieu Tax 5,587 4,508 4,291 4,348 4,143

Sales Tax in Lieu Tax 1,421 1,402 1,358 1,517 1,808

Franchise taxes 2,128 2,015 2,154 2,245 2,293

Other taxes 352 270 270 264 240

Total taxes 34,137 28,904 27,301 20,439 18,472

Investment earnings 6,742 5,976 2,831 2,690 4,417

Gain (loss) on sale of capital assets - - - - -

Miscellaneous 290 608 279 305 358

Extraordinary Item - - - 33,774 -

Transfers (89) (140) - (765) -

Special Item-Gain on CFD Investments - - - - -

Total governmental activities 41,080 35,348 30,411 56,443 23,247


Investment income 63 42 26 25 (16)

Gain (loss) on sale of capital assets - - - 117 -

Special Items - - - - -

Extraordinary Item - - - 6,700 -

Transfers 89 140 - 765 -

Total business-type activities 152 182 26 7,607 (16)

Total primary government 41,232$ 35,530$ 30,437$ 64,050$ 23,231$


Governmental activities (9,146)$ (6,509)$ (4,815)$ 31,963$ 3,489$

Business-type activities (296) (412) (59) 7,462 1,418

Total primary government (9,442)$ (6,921)$ (4,874)$ 39,425$ 4,907$

Prior Period Adjustments

Governmental activities (1,363)$ (562)$ 2,917$ 70$ (7,169)$

Business-type activities 23$ -$ 284$ -$ -$


Note: Due to the reclassification of the Perris Community Economic Development (CEDC) Fund from a Government Component

Unit to an Enterprise Fund in 2017, the statements above include a new category under the section "Business Type Activities"

named: "Perris CEDC." No adjustments to prior years have been made.

Fiscal Year


(accrual basis of accounting)Last Ten Fiscal Years

City of PerrisChange in Net Position

141

2014 2015 2016 2017 2018

General Revenues and Other Changes in

Net Position

Government activities:

Taxes

Property taxes 4,345$ 4,980$ 5,594$ 6,157$ 6,838$

Sales and use taxes 6,688 6,652 9,270 10,586 21,376

Motor Vehicle in-lieu taxes 30 30 29 33 40

Vehicle License Fee in Lieu Tax 4,370 4,893 5,254 5,784 6,272

Sales Tax in Lieu Tax 2,080 2,318 1,740 - -

Franchise taxes 2,474 2,633 2,625 2,496 2,835

Other taxes 239 338 467 401 633

Total taxes 20,226 21,844 24,979 25,457 37,994

Investment earnings 3,341 905 654 163 (295)

Gain (loss) on sale of capital assets - - 203 (267) -

Miscellaneous 1,621 3,852 317 170 68

Extraordinary Item - - - - -

Transfers (89) (398) (553) (569) (546)

Special Item-Gain on CFD Investments - 178 1,260 - -

Total governmental activities 25,099 26,381 26,860 24,954 37,221


Investment income 52 29 36 2 8

Gain (loss) on sale of capital assets - - - - -

Special Items - - - - 1,039

Extraordinary Item - - - - -

Transfers 89 398 553 569 546

Total business-type activities 141 427 589 571 1,593



Governmental activities 8,888$ 6,767$ 18,300$ 18,521$ 36,796$

Business-type activities (2,715) (1,751) (583) 587 (688)


Prior Period Adjustments

Governmental activities -$ (13,085)$ -$ -$ (7,189)$

Business-type activities -$ 1,648$ 73$ 6,161$ -$


Note: Due to the reclassification of the Perris Community Economic Development (CEDC) Fund from a Government Component

Unit to an Enterprise Fund in 2017, the statements above include a new category under the section "Business Type Activities"

named: "Perris CEDC." No adjustments to prior years have been made.

Fiscal Year

(accrual basis of accounting)(in thousands of dollars)

City of Perris

Page 4

Change in Net PositionLast Ten Fiscal Years

142

2009 2010 2011* 2012 2013

General fund

Reserved 4,056$ 6,014$ -$ -$ -$

Unreserved 20,214 17,479 - - -

Nonspendable - - 3,292 2,776 3,181

Restricted - - - - -

Assigned - - 6,200 6,200 6,200

Unassigned - - 15,229 18,104 16,699

Total general fund 24,270$ 23,493$ 24,721$ 27,080$ 26,080$

All other governmental funds

Reserved 138,656$ 151,482$ -$ -$ -$

Unreserved, reported in:

Special revenue funds 43,373 35,170 - - -

Debt service funds (7,289) (7,529) - - -

Capital project funds (1,769) (6,502) - - -

Nonspendable - - 6,083 - -

Restricted - - 181,738 173,139 177,114

Assigned - - - - -

Unassigned - - (30,054) (328) (58)

Total all other governmental funds 172,971$ 172,621$ 157,767$ 172,811$ 177,056$


*In FY 2010-2011 the City implemented GASB 54, Fund Balance Reporting and Government Fund Type Definitions.This Statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to whicha government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.The initial distinction that is made in reporting fund balance information is identifying amounts that are considerednonspendable, such as fund balance associated with inventories. This Statement also provides for additionalclassification as restricted, committed, assigned, and unassigned based on the relative strength of the constraints thatcontrol how specific amounts can be spent. The requirements of this Statement are effective for financial statements forperiods beginning after June 15, 2010.

City of PerrisFund Balances of Governmental Funds

Last Ten Fiscal Years(modified accrual basis of accounting)


Fiscal Year

143

2014 2015 2016 2017 2018

General fund

Reserved -$ -$ -$ -$ -$

Unreserved - - - - -

Nonspendable 2,582 7,768 8,806 9,343 11,762

Restricted - - - - -

Assigned 6,200 6,200 6,200 6,200 6,200

Unassigned 18,123 12,983 13,878 11,845 16,793

Total general fund 26,905$ 26,951$ 28,884$ 27,388$ 34,755$

All other governmental funds

Reserved -$ -$ -$ -$ -$

Unreserved, reported in:

Special revenue funds - - - - -

Debt service funds - - - - -

Capital project funds - - - - -

Nonspendable - - - - -

Restricted 183,424 211,355 233,283 247,465 294,782

Assigned - - - -

Unassigned - (55) (123) (1,311) (1,410)

Total all other governmental funds 183,424$ 211,300$ 233,160$ 246,154$ 293,372$

City of PerrisFund Balances of Governmental Funds

Last Ten Fiscal Years

Fiscal Year

(modified accrual basis of accounting)(in thousands of dollars)

Page 2

144

2009 2010 2011 2012 2013Revenues

Taxes 34,136$ 28,904$ 27,302$ 20,440$ 18,472$ Licenses and Permits 748 1,005 771 1,003 1,078 Intergovernmental Revenues 4,785 5,138 5,867 5,429 9,106 Charges for Services 480 350 598 557 675 Fines, Forfeitures, and Penalties 619 739 666 731 670 Developer Fees 2,303 2,553 603 1,417 5,188 Investment Earnings 6,743 5,717 6,658 6,751 8,035 Special Assessments 3,382 4,251 4,032 4,027 3,975 Contributions from Property Owners 2,490 3,659 1,862 3,942 3,373 Other Revenue 1,627 1,273 313 333 407

Total Revenues 57,313 53,589 48,672 44,630 50,979

ExpendituresGeneral Government 6,307 5,636 4,738 4,684 5,447 Public Safety 16,132 16,092 15,938 16,372 16,804 Public Works 6,013 7,736 12,696 10,344 4,852 Parks and Recreation 2,174 1,827 1,716 1,795 1,987 State ERAF - 3,771 776 - - Capital Outlay 22,712 16,953 14,043 12,567 10,746 Debt Service -

Pass-through Agreements 6,841 3,161 3,369 1,597 - Issuance Costs 783 930 - - 459 Principal Retirement 1,803 3,100 3,590 3,130 3,370 Interest and Fiscal Charges 6,683 7,760 8,084 7,941 7,770

Total Expenditures 69,448 66,966 64,950 58,430 51,435

Excess of revenuesover (under) expenditures (12,135) (13,377) (16,278) (13,800) (455)

Other Financing Sources (Uses)Transfers in 6,399 8,845 14,873 57,680 5,589 Transfers Out (6,487) (8,985) (14,873) (57,680) (5,589) Proceeds from Sale of Property 6 51 (604) (258) 50 Proceeds from Sale of Land - (430) - - - Sale of Property - - - - - Payments to Refunded Bond Escrow Agent - - - - (4,197) Loss on Debt Refunding - - - - (1,344) Premiums on Long Term Debt - - - - 37 Revenue Bonds Issued - - - - - Revenue Refunding Bonds Issued - - - - - Proceeds from Refunding Bonds - - - - - Proceeds from Long Term Debt 12,024 13,014 339 141 8,505 Premiums on Refunding Bonds Issued - - - - - Discounts on Refunding Bonds Issued - - - - - Sale of Capital Assests - - - - -

Total Other Financing Sources (Uses) 11,942 12,495 (265) (117) 3,051

Special ItemGain on CFD Investments - - - - -

Net Change in Fund Balances before Prior Period Adjustments and Extraordinary Item (193) (882) (16,543) (13,917) 2,595

Prior Period Adjustments (1,362) (245) 292 70 650 Extraordinary Item - - - 31,250 -

Net Change in Fund Balances (1,555)$ (1,127)$ (16,251)$ 17,403$ 3,245$

Debt Service as a percentage ofnon-capital expenditures 13.6% 19.0% 23.4% 23.4% 25.4%


City of PerrisChanges in Fund Balance of Governmental Funds

Last Ten Fiscal Years(modified accrual basis of accounting)


Fiscal Year

145

2014 2015 2016 2017 2018Revenues

Taxes 20,143$ 21,845$ 24,948$ 25,421$ 38,067$ Licenses and Permits 1,824 2,248 2,459 2,583 2,844 Intergovernmental Revenues 6,544 8,673 6,138 7,377 10,941 Charges for Services 933 1,191 1,031 827 800 Fines, Forfeitures, and Penalties 746 726 808 1,009 899 Developer Fees 4,259 1,164 18,507 13,494 30,532 Investment Earnings 8,751 7,956 7,097 7,141 7,802 Special Assessments 4,210 4,263 4,610 5,086 5,105 Contributions from Property Owners 4,718 14,889 8,388 6,457 6,412 Other Revenue 427 224 407 403 306

Total Revenues 52,555 63,179 74,393 69,798 103,708

ExpendituresGeneral Government 6,131 6,112 6,711 7,388 10,216 Public Safety 18,347 20,083 22,463 22,649 24,341 Public Works 4,750 6,904 5,712 5,621 6,013 Parks and Recreation 2,560 3,000 3,015 3,100 3,528 State ERAF - - - - - Capital Outlay 4,921 13,636 14,373 9,221 20,766 Debt Service

Pass-through Agreements - - - - - Issuance Costs 810 2,490 2,519 120 966 Principal Retirement 2,630 3,405 3,290 7,155 8,520 Interest and Fiscal Charges 7,499 7,158 6,449 7,002 7,344

Total Expenditures 47,648 62,788 64,532 62,256 81,694

Excess of revenueover (under) expenditures 4,907 391 9,861 7,542 22,014

Other Financing Sources (Uses)Transfers in 15,555 28,651 10,160 1,853 1,345 Transfers Out (15,644) (29,049) (10,713) (2,422) (1,891) Proceeds from Sale of Property - - - - - Proceeds from Sale of Land - - - - - Sale of Property 107 3 1,546 3 - Payments to Refunded Bond Escrow Agent (14,915) (22,092) (56,999) - - Loss on Debt Refunding - - - - Premiums on Long Term Debt - - - - Revenue Bonds Issued - - 13,015 4,580 26,585 Revenue Refunding Bonds Issued - - - - 4,060 Proceeds from Refunding Bonds 14,990 55,725 54,685 - - Proceeds from Long Term Debt - - - - Premiums on Refunding Bonds Issued - 133 1,561 - 2,426 Discounts on Refunding Bonds Issued - (459) (584) (104) (7) Sale of Capital Assests - - - - 99

Total Other Financing Sources (Uses) 93 32,912 12,671 3,910 32,617

Special ItemGain on CFD Investments - 178 1,260 - -

Net Change in Fund Balances before Prior Period Adjustments and Extraordinary Item 4,999 33,481 23,792 11,452 54,631

Prior Period Adjustments (5,560) - - - Extraordinary Item - - - -

Net Change in Fund Balances 4,999$ 27,921$ 23,792$ 11,452$ 54,631$

Debt Service as a percentage ofnon-capital expenditures 23.5% 20.1% 17.4% 26.4% 23.3%


City of PerrisChanges in Fund Balance of Governmental Funds


Fiscal Year

(modified accrual basis of accounting)(in thousands of dollars)

Page 2

146

Sales Motor Vehicle Sales

& Vehicle License Fee Tax

Fiscal Property Use in-lieu in-lieu in-lieu Franchise Other

Year Tax Tax Tax Tax Tax Tax Taxes Total

2009 19,532$ 4,934$ 183$ 5,587$ 1,421$ 2,128$ 352$ 34,137$

2010 16,285 4,264 160 4,508 1,402 2,015 270 28,904

2011 14,368 4,594 266 4,291 1,358 2,154 270 27,301

2012 6,406 5,624 35 4,348 1,517 2,245 264 20,439

2013 4,270 5,682 36 4,143 1,808 2,293 240 18,472

2014 4,345 6,688 30 4,370 2,080 2,474 239 20,226

2015 4,980 6,652 30 4,893 2,318 2,633 338 21,844

2016 5,594 9,270 29 5,254 1,740 2,625 467 24,979

2017 6,157 10,586 33 5,784 - 2,496 401 25,457

2018 6,838 21,376 40 6,272 - 2,835 633 37,994

Soruce: City of Perris, Finance Department

(in thousands of dollars)

City of PerrisGovernmental Activities Tax Revenues by Source


147

2008 2009 2010 2011 2012* 2013

Apparel Stores 3,317$ 3,101$ 3,182$ 3,312$ 3,843$ 4,009$

General Merchandise 48,940 47,459 46,542 46,087 0 0

Food Stores 35,343 36,093 34,029 36,586 37,722 39,053

Eating and Drinking Places 43,483 43,558 47,491 47,689 51,891 57,071

Building Materials 41,381 39,835 38,182 43,828 41,366 50,008

Auto Dealers and Supplies 48,371 42,644 39,022 54,387 56,371 75,625

Service Stations 83,558 77,309 92,074 104,990 116,770 123,421

Other Retail Stores* 29,540 24,645 25,363 25,076 76,367 76,393

All Other Outlets 275,246 233,059 239,811 297,831 314,032 393,593

Total 609,179$ 547,703$ 565,696$ 659,786$ 698,362$ 819,173$

Source: State of California Board of Equalization and the HdL Coren & Cone

Note:

*Beginning 2012, Other Retail Stores category includes General Merchandise taxable sales.*Beginning 2016, Other Retail Stores category includes General Merchandise and Building Materials taxable sales.

Due to confidentiality issues, the names of the ten largest revenue payers are not available. Thecategories presented are intended to provide alternative information regarding the sources of the City'srevenue. Information for Fiscal Year 2018 is unavailable.

Fiscal Year

City of PerrisTaxable Sales by CategoryLast Ten Calendar Years(in thousands of dollars)

Page 1

148

2014 2015 2016 2017

Apparel Stores 4,067$ 8,024$ 10,630$ 11,112$

General Merchandise 0 0 0 0

Food Stores 41,174 42,029 38,232 50,466

Eating and Drinking Places 63,075 71,883 78,862 93,540

Building Materials 54,126 106,130 0 215,677

Auto Dealers and Supplies 76,960 71,111 61,196 70,378

Service Stations 124,388 115,844 113,711 118,006

Other Retail Stores* 91,585 93,789 266,265 124,461

All Other Outlets 425,561 407,372 492,577 963,221

Total 880,936$ 916,182$ 1,061,473$ 1,646,861$

Source: State of California Board of Equalization and the HdL Coren & Cone

Note:

*Beginning 2012, Other Retail Stores category includes General Merchandise taxable sales.*Beginning 2016, Other Retail Stores category includes General Merchandise and Building Materials taxable sales.

Due to confidentiality issues, the names of the ten largest revenue payers are not available. Thecategories presented are intended to provide alternative information regarding the sources of theCity's revenue. Information for Fiscal Year 2018 is unavailable.

City of PerrisTaxable Sales by CategoryLast Ten Calendar Years(in thousands of dollars)

Page 2

Fiscal Year

149

Fiscal Year Total Taxable Total

Ended Real Personal Other Homeowners' Assessed Direct Tax

June 30 Property Property Other Exemptions Exemptions Value Rate

2009* 4,824,482$ 103,735$ 110,176$ 27,606$ 43,399$ 4,967,388$ 1.0000

2010* 3,858,356 111,085 111,869 30,722 43,445 4,007,143 1.0000

2011* 3,654,277 106,428 105,083 27,412 45,808 3,792,568 1.0000

2012* 3,712,750 91,163 109,697 28,065 45,422 3,840,123 1.0000

2013* 3,552,789 94,267 115,361 38,319 44,772 3,679,326 1.0000

2014* 3,750,174 100,978 146,695 48,917 43,843 3,905,087 1.0000

2015* 4,182,286 110,855 141,272 49,308 42,854 4,342,251 1.0000

2016* 4,521,608 126,013 151,211 54,620 42,549 4,701,663 1.0000

2017* 4,932,555 150,617 177,229 62,425 42,537 5,155,439 1.0000

2018* 5,365,859 160,006 180,886 70,048 43,067 5,593,636 1.0000

Source: *HdL Coren & Cone

City of PerrisAssessed Value and Actual Value of Taxable Property


Less:

(In thousands of dollars)

150

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Basic Levy 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

Eastern Municipal Water Improvement District 0.00400 0.05300 0.05300 0.05300 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000

Metropolitan Water District Original Area 0.00430 0.00430 0.03436 0.00370 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350

Menifee School 0.02370 0.03254 0.00370 0.03486 0.03543 0.03421 0.03275 0.03010 0.03269 0.06080

Perris School District 0.02894 0.02485 0.01983 0.01983 0.01800 0.02524 0.05588 0.04699 0.05491 0.06000

Perris Union High School 0.02031 0.02686 0.03126 0.03429 0.03429 0.06970 0.06303 0.06236 0.06092 0.05675

Riverside City Community College 0.01254 0.01242 0.01499 0.01700 0.01702 0.01768 0.01791 0.01725 0.01649 0.01616

Val Verde Unified 0.03189 0.04089 0.03347 0.03160 0.08383 0.07235 0.07882 0.07135 0.07210 0.06368

Mt San Jacinto Jr College 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.01394 0.01320 0.01320

Total Prop 13 Rate 1.12568 1.19486 1.19061 1.19428 1.24207 1.27268 1.30189 1.29549 1.30381 1.32409

City's Share of 1% Levy Per Prop 13 0.25436 0.13146 0.25436 0.25436 0.25436 0.13146 0.13146 0.13146 0.13146 0.13146

Source: *HdL Coren & Cone

Agency

City of PerrisDirect and Overlapping Property Tax Rates


151

Taxable Assessed Value Rank

Percentage of Total Taxable Assessed Value

Taxable Assessed Value Rank

Percentage of Total Taxable Assessed Value

Ross Distribution Inc 189,541,559$ 1 3.36% -$ 0.00%

DB RREEF Perris California 126,794,366 2 2.25% 110,743,962 1 2.21%

Duke Realty LP 125,154,365 3 2.22% - 0.00%

IIT Inland Empire 3700 Indian Ave 102,000,000 4 1.81% - 0.00%

Stratford Ranch 83,203,824 5 1.48% - 0.00%

O R E Industrial 81,297,692 6 1.44% - 0.00%

HD California DFDC Landlord 65,913,798 7 1.17% - 0.00%

Lowes HIW Inc 62,810,891 8 1.11% 84,649,079 3 1.69%

GM Gabrych Family LP 60,806,036 9 1.08% - 0.00%

3900 Indian Avenue 51,408,000 10 0.91% - 0.00%

Centex Homes - 0.00% 90,530,660 2 1.81%

Wachovia Dev Corporation - 0.00% 73,647,286 4 1.47%

Ross Dress For Less Inc - 0.00% 40,684,999 5 0.81%

FR California Ellis - 0.00% 36,919,000 6 0.74%

First Industrial - 0.00% 34,328,569 7 0.68%

Ranch at Green Valley - 0.00% 31,099,477 8 0.62%

FR California Goetz Road - 0.00% 30,083,411 9 0.60%

Courdures Family LP - 0.00% 27,146,124 10 0.54%

Totals 948,930,531$ 16.83% 559,832,567$ 11.17%

Source: HdL Coren & Cone, Riverside County Assessor 2017/18 & 2008/09 Combined Tax Rolls and SBE Non Unitary Tax Roll

Taxpayer

2009

City of PerrisPrincipal Property Taxpayers

June 30, 2018(in thousands of dollars)

Current Year and Nine Years Ago

2018

152

Fiscal Year Total Tax Collections in

Ended Levy for Percentage Subsequent Percentage

June 30 Fiscal Year Amount of Levy Years Amount of Levy

2009 5,017$ 4,739$ 94.46% 278$ 5,017$ 100.00%

2010 3,826 3,736 97.65% 90 3,826 100.00%

2011 3,723 3,654 98.15% 69 3,723 100.00%

2012 4,650 4,586 98.62% 64 4,650 100.00%

2013 4,271 4,212 98.62% 59 4,271 100.00%

2014 4,262 4,205 98.66% 57 4,262 100.00%

2015 4,981 4,943 99.24% 38 4,981 100.00%

2016 5,562 5,540 99.60% 22 5,562 100.00%

2017 6,121 6,081 99.35% 40 6,121 100.00%

2018 6,911 6,865 99.33% 46 6,911 100.00%


Fiscal Year of the Levy Total Collections to Date


City of PerrisProperty Tax Levies and Collections


Collected within the

153

Business-type

Activities Total Percentage Percentage

Fiscal Revenue Notes Reimbursement Notes Primary of Value Per of Personal

Year Bonds Payable Agreements Payable Government of Property Capita Income

2009 131,495$ * 3,545$ -$ 10,566$ 145,606$ 3.78% 2,675$ 19%

2010 141,054 * 3,883 - 10,531 155,468 4.75% 2,853 20%

2011 137,452 * 4,207 - 10,494 152,153 4.65% 2,853 19%

2012 134,311 * - - 12,454 146,765 2.54% 2,347 16%

2013 134,965 * 781 - 12,415 148,161 4.73% 2,084 16%

2014 132,743 * 781 - 12,375 145,899 3.33% 2,025 16%

2015 162,262 781 - 5,385 168,428 3.84% 2,310 18%

2016 172,068 * 781 - 5,342 178,191 4.07% 1,981 18%

2017 169,356 781 - 5,297 175,434 4.00% 1,928 18%

2018 193,861 781 - - 194,642 4.09% 1,876 18%


*2009 - 2013 Revenue Bond amounts have been adjusted to include premiums on revenue bonds.*2014 has been restated to include discounts on revenue bonds recorded as a prior period adjustment.*2016 has been restated to include premiums and discounts on revenue bonds.

Governmental Activities

City of PerrisRatios of Outstanding Debt by Type

Last Ten Fiscal Years(in thousands of dollars, except per capita amount)

154

Percentage Share of

DIRECT DEBT: Applicable Overlapping Debt

City of Perris - Perris Redevelopment Agency Loan 100.000% 781,370$

Perris Financing Authority - Revenue Bonds 100.000% 66,645,000

Perris Joint Powers Authority - Revenue Bonds 100.000% 124,465,000

TOTAL DIRECT DEBT 191,891,370$

OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District 0.205% 124,230$

Eastern Municipal Water District, I.D. U8 0.000% -

Eastern Municipal Water District, I.D. U9 100.000% 2,641,000

Riverside County Flood Control and Water Conservation District, Zone 4 11.802% 1,976,835

Mount San Jacinto Community College District 2.739% 4,868,983

Riverside City Community College District 3.340% 8,562,602

Val Verde Unified School District 42.150% 51,745,203

Perris Union High School District 15.112% 16,118,807

Menifee Union School District 0.072% 47,505

Perris School District 71.808% 20,976,009

City of Perris Community Facilities Districts 100.000% 147,130,000

Romoland School District Community Facilities District No. 2001-1 100.000% 3,235,000

Val Verde Unified School District Community Facilities Districts 100.000% 4,005,000

Perris Union High School District Community Facilities Districts 1.146% 9,624,001

City of Perris 100.000% -

TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT 271,055,175$

OVERLAPPING GENERAL FUND OBLIGATION DEBT:

Riverside County General Fund Obligations 2.137% 17,370,158$

Riverside County Pension Oblications 2.137% 5,692,220

Val Verde Unified School District Certificates of Participation 42.150% 27,633,540

Perris Union High School District General Fund Obligations 15.112% 1,120,049

Menifee Union School District Certificates of Participation 0.072% 20,357

Perris School District Certificates of Participation 71.808% 4,987,066

TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT 56,823,390$

Less: Riverside County self-supporting obligations 71,660

TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT 56,751,730$

OVERLAPPING TAX INCREMENT DEBT (SUCCESSORY AGENCY) 100.000% 63,570,000

GROSS COMBINED TOTAL DEBT (1) 583,339,935$ (2)

NET COMBINED TOTAL DEBT 583,268,275$

Source: California Municipal Statistics. Inc., City of Perris Finance Department

(1) Percentage of overlapping agency's assessed valuation located within the boundaries of the City.

(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and

non-bonded capital lease obligations. Qualified Zone Acadamy Bonds are inlcuded based on principal due at maturity.

City of PerrisDirect and Overlapping Governmental Activities Debt

As of June 30, 2018

155

Fiscal Year 2018

Assessed Value 5,593,636$

Debt Limit (15% of assessed value) 839,045

Legal Debt Margin 4,754,591$

Ratio of the Legal

Debt Margin to the

Fiscal Year Legal Debt Margin Debt Limit Debt Limit

2009 4,290,449 757,138 567%

2010 3,444,061 607,776 567%

2011 3,262,622 575,757 567%

2012 3,264,105 576,018 567%

2013 3,127,427 551,899 567%

2014 3,319,324 585,763 567%

2015 3,690,913 651,338 567%

2016 3,996,414 705,249 567%

2017 4,382,123 773,316 567%

2018 4,754,591 839,045 567%

Source: HdL Coren & ConeCity of Perris, Finance DepartmentNote: Currently, the City has no debt applicable to the debt limit.

Last Ten Fiscal Years(in thousands of dollars)

City of PerrisLegal Debt Margin Information

156

Sewer Less: Net

Fiscal Charges Operating Available

Year and Other Expenses Revenue Principal Interest Coverage

2009 1,493$ 1,497$ (4)$ 34$ 42$ -5.26%

2010 1,559 1,442 117 35 41 153.95%

2011 1,619 1,598 21 37 40 27.27%

2012 1,678 1,652 26 38 39 33.77%

2013 1,734 1,524 210 39 37 276.32%

2014 1,850 1,593 257 40 36 338.16%

2015 1,820 1,837 (17) 42 35 -22.08%

2016 1,934 1,867 67 43 33 88.16%

2017 2,039 1,883 156 45 32 202.60%

2018 2,094 2,330 (236) 887 34 -25.62%


Note: Details regarding the government's outstanding debt can be found in the notes to the financial

statements. Sewer Charges and Other and Water Charges and Other include investment Income.

Operating expenses do not include interest or depreciation.

Debt Service


Sewer Revenue Bonds

Page 1

City of PerrisPledged Revenue Coverage


157

Water Less: Net

Fiscal Charges Operating Available

Year and Other Expenses Revenue Principal Interest Coverage

2009 2,039$ 2,314$ (275)$ -$ -$ N/A

2010 2,374 2,745 (371) - - N/A

2011 2,588 2,390 198 - - N/A

2012 2,693 2,507 186 - - N/A

2013 2,809 2,585 224 - - N/A

2014 3,112 2,814 298 - - N/A

2015 2,786 2,776 10 - - N/A

2016 2,506 2,489 17 - - N/A

2017 2,691 2,699 (8) - - N/A

2018 2,919 3,089 (170) - - N/A


Note: Details regarding the government's outstanding debt can be found in the notes to the financial

statements. Sewer Charges and Other and Water Charges and Other include investment Income.

Operating expenses do not include interest or depreciation.

Debt Service

Water Revenue Bonds


City of PerrisPledged Revenue Coverage

Last Ten Fiscal YearsPage 2

158

Fiscal Year Population

Personal Income


Per Capita Personal Income Median Age

School Enrollment

Unemployment Rate

2009 54,323 784,641$ 14,718$ 25.8 34,998 21.3

2010 54,387 777,445 14,295 25.4 20,427 20.8

2011 55,133 781,235 14,170 22.4 16,188 22.4

2012 70,180 921,042 13,124 25.7 16,461 18.6

2013 70,963 945,866 13,329 25.9 16,404 15.0

2014 72,103 914,410 12,682 25.4 16,317 13.2

2015 72,908 953,105 13,226 27.0 16,331 11.9

2016 73,722 964,736 13,100 27.0 16,626 9.8

2017 75,739 1,001,594 13,224 26.5 16,759 8.8

2018 77,837 1,088,435 13,983 26.6 16,765 6.7

Source: 1) U.S. Census Bureau

2) CA Dept. of ED., Educational Demographics Unit, District Level Enrollment Reports.

3) Riverside County EDA

4) HdL Coren & Cone

5) State of CA EDD Labor Market Information Div

6) California State Department of Finance

7) California Employment Development Department

Demographic and Economic StatisticsLast Ten Fiscal Years

City of Perris

159

Employees Rank

Percentage of Total City

Employment Employees Rank

Percentage of Total City

Employment

Ross Stores Inc. 1,921 1 6.38% --- ---

Perris Union High School District 938 2 3.12% --- ---

Perris Elementary School District 780 3 2.59% --- ---

Lowe's CA Regional Distribution Center 762 4 2.53% --- ---

Eastern Municipal Water District 611 5 2.03% 1,000 2 ---

NFI Industries (3) 560 6 1.86% --- ---

National Stores Inc (aka Fallas, Factory 2 U) (1) 485 7 1.61% --- ---

California Trus CO Inc* 375 8 1.25% --- ---

Home Depot Distribution Center 263 9 0.87% --- ---

CR&R Waste - Perris 262 10 0.87% --- ---

Starcrest - 0.00% 1,400 1 ---

National RV Holdings Inc - 0.00% 850 3 ---

Pw EagleInc. - 0.00% 267 4 ---

Wal-Mart - 0.00% 250 5 ---

Coreslab Structures Inc. - 0.00% 200 6 ---

Clayton Homes - 0.00% 200 7 ---

Silver Creek Industries - 0.00% 175 8 ---

Navigator Yachts - 0.00% 150 9 ---

Stater Brothers - 0.00% 120 10 ---

- 0.00%

Totals 6,957$ 23.11% 4,612$ 0.00%

Source: 1) Muniservices, LLC

2) City of Perris, Finance Department (2018 CAFR)

3) City of Perris, Finance Department (2009 CAFR)

Notes

*2017-18 - Perris Location only. 2015-16 - 3 locations: Perris, Modesto, Sanger.** Total City Labor Force provided by EDD Labor Force Data.

Total Employment Numbers2018 City Totals 30,100$ **2017 City Totals 29,800 2016 City Totals 29,400 2015 City Totals 16,100 2013 City Totals 17,400 2009 City Totals 18,045 2007 City Totals 14,750

(1) Includes sub-contracted employees from temp services

(2) Includes classified, certificated and admin

(3) Supply chain management for Hanes, Whirlpool and Amazon

City of PerrisPrincipal Employers

Current Year and Nine Years Ago

Employer

2018 2009

160

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Function

General government 59 72 59 58 42 47 43 54 54 72

Public safety*

Police

Officers 47 45 44 44 44 44 45 46 46 47

Fire

Firefighters and officers 16 16 16 16 16 19 19 19 19 19

Highways and streets

Engineering ** 6 6 9 8 8 8 8 8 9 10

Maintenance 12 8 11 9 8 8 8 15 18 19

Culture and recreation 8 10 6 16 6 8 7 9 11 10

Water** 4 4 3 4 4 4 4 3 3 4

Sewer** 1 2 2 2 2 2 2 2 2 2

Total 153 163 150 157 130 140 136 156 162 183


*Public safety employees are contracted with the State of California Department of Forestry Services and theRiverside County Sheriff Department

**Outsourced Services

Fiscal Year

City of PerrisFull-time Equivalent City Government Employees by Function


161

2009 2010 2011 2012 2013

Function

Police

Physical arrests 4,648 3,937 2,924 1,268 1,590

Parking violations 409 349 744 445 638

Traffic violations 10,628 9,494 4,061 5,417 3,493

Fire

Number of Calls answered 4,358 5,073 4,974 5,253 5,714

Public Works

Street resurfacing (miles) 22 15 13 10 14

Potholes repaired (1,000 sq feet) 6 11 8 16 320

Water

New connections 0 3 3 2 6

Water mains breaks 10 1 3 5 2

Average daily consumption 3,084 3,076 2,699 2,885 3,683

(100 cubic feet)

Source: City of Perris, Riverside County Sheriffs Department, California Department of Forestry

Note: Information marked "n/a" are being researched and will be provided when available.

* In 2009, the City of Perris added Water Customers from North Perris with the purchase of the McCanna Water System.

City of PerrisOperating Indicators by Function


Fiscal Year

162

2014 2015 2016 2017 2018

Function

Police

Physical arrests 1,823 1,445 1,321 1,373 1,687

Parking violations 582 325 177 149 199

Traffic violations 5,087 5,624 6,412 6,586 6,255

Fire

Number of Calls answered 5,762 5,892 6,773 8,763 7,294

Public Works

Street resurfacing (miles) 16 32 22 16 15

Potholes repaired (1,000 sq feet) 336 280 16 26 33

Water

New connections 5 10 11 13 14

Water mains breaks 2 3 4 0 1

Average daily consumption 3,165 2,861 2,457 2,624 2,846

(100 cubic feet)

Fiscal Year

City of PerrisOperating Indicators by Function


163

2009 2010 2011 2012 2013Function

Public safety

Police:

Stations 1 1 1 1 1

Patrol units 40 38 38 34 45

Fire Stations 2 2 2 2 2


Streets (miles) 190 190 192 193 193

Streetlights 4,301 4,381 4,405 4,496 4,537

Traffic signals 63 63 73 84 71

Parks and recreation

Parks acreage 144 144 144 144 146

Parks 19 19 19 19 19

Tennis courts 4 2 2 2 2

Community centers 2 2 2 2 2

Water

Water mains (miles) 39 39 39 39 39

Sewer

Sanitary sewers (miles) 27 27 27 27 27

Storm sewers (1,000 linear feet) 147 147 147 148 160

Source: City of Perris, Riverside County Sheriffs Department, California Department of Forestry

City of PerrisCapital Asset Statistics by Function


Fiscal Year

164

2014 2015 2016 2017 2018Function

Public safety

Police:

Stations 1 1 1 1 1

Patrol units 23 28 31 31 35

Fire Stations 2 2 2 2 2


Streets (miles) 194 194 197 197 197

Streetlights 4,609 4,656 4,751 4,940 4,935

Traffic signals 75 75 80 83 93

Culture and recreation

Parks acreage 164 164 174 274 274

Parks 20 20 23 23 23

Tennis courts 2 2 2 2 2

Community centers 2 2 2 2 2

Water

Water mains (miles) 48 48 48 48 48

Sewer

Sanitary sewers (miles) 35 35 36 36 36

Storm sewers (1,000 linear feet) 161 161 164 172 174

Fiscal Year

City of PerrisCapital Asset Statistics by Function


165

CITY OF PERRIS, CALIFORNIA

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