ACFR FY 2018-2019•
Comprehensive Annual Financial Report
For the Year Ended June 30, 2019
*�Fy+��lia Ili
'00
City of Poway
Poway, California
Comprehensive Annual Financial Report
Year Ended June 30, 2019
Prepared by the
Finance Department
of the
City of Poway
This page intentionally left blank.
CITY OF POWAY
Comprehensive Annual Financial Report
Year Ended June 30, 2019
Table of Contents
INTRODUCTORY SECTION PAGE NUMBER
Letter of Transmittal i
Principal Officers vii
Organization Chart viii
GFOA Certificate of Achievement for Excellence in Financial Reporting ix
FINANCIAL SECTION
Independent Auditor's Report 1
Management's Discussion and Analysis 5
Basic Financial Statements:
Government —Wide Financial Statements
Statement of Net Position 18
Statement of Activities 20
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet — Governmental Funds 25
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position 26
Statement of Revenues, Expenditures, and Changes in Fund Balances 27
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 28
Proprietary Fund Financial Statements:
Statement of Net Position 31
Statement of Revenues, Expenses, and Changes in Net Position 32
Statement of Cash Flows 33
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position 37
Statement of Changes in Fiduciary Net Position 38
Notes to the Basic Financial Statements 41
Required Supplementary Information:
Budgetary Information 89
Budgetary Comparison Schedule — General Fund 90
Budgetary Comparison Schedule — Housing Authority Fund 91
CITY OF POWAY
Comprehensive Annual Financial Report
Year Ended June 30, 2019
Table of Contents (Continued)
Schedule of Changes in Net Pension Liability and Related Ratios, Last
10 Years — Miscellaneous Plan 92
Schedule of Plan Contributions, Last 10 Years — Miscellaneous Plan 93
Schedule of the City's Proportionate Share of the Plan's Net Pension Liability
and Related Ratios as of the Measurement Date, Last 10 Years — Safety Plan 94
Schedule of Plan Contributions, Last 10 Years — Safety Plan 95
Schedule of Changes in Net Pension Liability and Related Ratios, Last
10 Years — Retirement Enhancement Plan 96
Schedule of Plan Contributions, Last 10 Years — Retirement Enhancement Plan 97
Supplementary Information:
Non -Major Governmental Funds:
Combining Balance Sheet 103
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 107
Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and
Actual Non -Major Special Revenue Funds:
Fire Protection 112
800 MHz Communication System 113
Gas Tax 114
Drainage 115
Miscellaneous Grants 116
AB 939 Integrated Waste Management 117
Community Development Block Grant 118
Transportation Development Act 119
Proposition A 120
SB 1186 Disabled Access Law 121
Excess SAFE Reserve 122
Regional Arterial Traffic Mitigation 123
Fire Protection Impact Fees 124
BEGIN Program 125
Housing In -Lieu 126
Abandoned Vehicle Fees 127
Habitat In -Lieu 128
Maintenance Districts 129
Road Repair 130
Non -Major Debt Service Fund:
City Debt Service 131
Non -Major Permanent Fund:
Mary Patricia Ross Trust 132
CITY OF POWAY
Comprehensive Annual Financial Report
Year Ended June 30, 2019
Table of Contents (Continued)
Non -Major Capital Projects Funds:
Park Improvement Capital Projects Fund 133
Street Improvement Capital Projects Fund 134
Municipal Improvement Capital Projects Fund 135
Internal Service Fund:
Statement of Net Position 138
Statement of Revenues, Expenses and Changes in Net Position 139
Statement of Cash Flows 140
Fiduciary Funds:
Combining Statement of Fiduciary Net Position —Agency Funds 143
Combining Statement of Changes in Assets and Liabilities — Agency Funds 144
STATISTICAL SECTION
Net Position by Component — Last Ten Fiscal Years 150
Changes in Net Position — Last Ten Fiscal Years 152
Fund Balances, Governmental Funds — Last Ten Fiscal Years 154
Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years 156
Assessed Value of Taxable Property — Last Ten Fiscal Years 158
Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years 160
Principal Secured Property Taxpayers — Current Year and Nine Years Ago 161
Assessed Value of Taxable Property Successor Agency and Redevelopment Tax Increment
Property Tax — Last Ten Fiscal Years 162
Redevelopment Property Tax Levies and Collections — Fiscal Years 2010-2012 163
General Property Tax Levies and Collections — Last Ten Fiscal Years 164
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years 165
Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years 166
Direct and Overlapping Debt as of June 30, 2019 167
Legal Debt Margin Information — Last Ten Fiscal Years 168
Pledged Revenue Coverage — Last Ten Fiscal Years 170
Demographic and Economic Statistics — Last Ten Calendar years 171
Principal Employers — Current Year and Nine Years Ago 172
Full -Time -Equivalent City Employees by Function — Last Ten Fiscal Years 173
Operating Indicators — Last Ten Fiscal Years 174
Capital Assets Statistics — Last Ten Fiscal Years 176
This page intentionally left blank.
Introductory Section
This page intentionally left blank.
/ STEVE VAUS, Mayor
DAVE GROSCH, Deputy Mayor
CAYLIN FRANK, Councilmember
BARRY LEONARD, Councilmember
JOHN MULLIN, Councilmember
December 31, 2019
CITY OF POWAY
Honorable Mayor, Councilmembers and Residents of Poway,
It is with great pleasure to present the City of Poway's Fiscal Year (FY) 2018-19 Comprehensive Annual
Financial Report (CAFR). This report has been prepared in conformity with generally accepted accounting
principles (GAAP) and has been audited in accordance with generally accepted auditing standards by Davis
Farr, LLP, a firm of licensed certified public accountants. This CAFR includes the financial activity for all funds
of the city.
Included within the city's financial statements is the financial information of the Poway Housing Authority,
Poway Public Financing Authority, and the Successor Agency to the Poway Redevelopment Agency (formerly
the Poway Redevelopment Agency). Although the entities are legally separate from the city, their financial
operations are closely related. Their activities are included with the activities of the city because the City
Council serves as the board of directors and can impose its will on these entities. There is, therefore, a financial
benefit/burden relationship.
The CAFR consists of management's representation concerning the finances of the city. Consequently,
responsibility for the accuracy of the data and completeness and fairness of the presentation, including all
disclosures, rests with the city. We assert that, to the best of our knowledge and belief, this report is complete
and reliable in all material respects. All disclosures necessary to enable an understanding of the city's financial
activities have been included.
Management Discussion and Analysis (MD&A) immediately follows the independent auditor's report and
provides a narrative introduction, overview and analysis of the basic financial statements. MD&A
complements this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
The City of Poway (Poway) incorporated on December 1, 1980, under the general laws of the State of
California. The city operates under a Council -Manager form of government. The City Council serves as the
legislative and policy -making body of the city and enacts the laws that protect the general welfare of the
community.
The City Manager is appointed by the City Council and serves as the Chief Executive Officer. The City Manager
is responsible for the administration of all city affairs and the implementation of policies established by the
Council. The City Attorney is also appointed by, and serves, the City Council. The City Manager appoints all
other City of Poway staff.
Poway provides water, sewer, street maintenance, fire, paramedic, parks, recreation, planning and building
services. The city contracts with the County of San Diego Sheriff's Department for law enforcement and with
the City of San Diego for wastewater treatment services.
City Hall Located at 13325 Civic Center Drive
Mailing Address: P.O. Box 789, Poway, California 92074-0789
www.poway.org
ECONOMIC CONDITION AND OUTLOOK
Poway is located along the coastal foothills of San Diego County, 20 miles north of downtown San Diego and
three miles east of Interstate 15. The city spans 39 square miles and has a population of 50,207. While there
is a broad continuum of housing options, Poway consists of mostly single-family homes. Poway's median home
value is around $740,000. The Poway Unified School District is a national leader in K-12 public education.
Poway continues to be recognized as an exceptional place to live. Poway was named the 18th Safest City in
California in January 2019 by Safewise.com and is regularly recognized as having one of the lowest crime rates
of any city in the county. In 2018 Poway was the safest incorporated city in San Diego County with an FBI crime
index of 11.41 crimes per 1,000 residents. This low crime rate can be attributed, in part, to the County of San
Diego Sheriff Department's engagement with the community and its proactive law enforcement techniques.
Businesses in Poway offer well -paying jobs. Some of the city's top employers include General Atomics, Geico,
Poway Unified School District, Delta Design, Palomar Medical Center Poway, Mitchell Repair Information
Company, and Sysco Food Services. Poway has a labor force (the number of people who work or are available
for work) of 26,400. The city's unemployment rate is 2.6 percent compared to the state's unemployment rate
of 3.5 percent.
Poway is known as the "City in the Country." More than 7,000 acres, representing over 30 percent of Poway's
land use, has been set aside as preserved natural open space. Residents enjoy a high quality of life supported
by the city's 232 acres of parkland and 76 miles of riding, hiking, and biking trails.
Poway has long relied on conservative fiscal assumptions to plan ahead with multi -year fiscal forecasts and
capital plans. The City Council continued to support a conservative approach in adopting the budget for FY
2018-19. The city's General Fund closed the fiscal year with a $0.72 million surplus which was primarily the
result of higher than expected property taxes and sales taxes coupled with lower than anticipated
expenditures. In accordance with the Council adopted General Fund Reserve Policy, the Council also added
$1.64 million to the city's reserves to maintain reserves at the adopted policy level of 45% of operating
expenditures, or $20.93 million, for FY2018-19.
Poway, like other municipalities in California, continues to see substantial increases to employer contribution
rates to the California Public Employees' Retirement System (CaIPERS). CaIPERS has revised its actuarial
methodology and, coupled with its lower than projected earnings in previous years, this has resulted in a
significant escalation in anticipated retirement costs for all employee groups over the next several years. The
most recently completed actuarial analysis indicates that the city has approximately $55 million in unfunded
liability, approximately 17% higher than the previous report. Long-term revenue growth is not projected to
keep pace with rising pension costs. Historically, the City Council has used year-end savings and one-time
monies to reduce unfunded pension plan liabilities and for capital reinvestment. Concerns about the operating
budget's ability to bear future increases prompted the city to hire a specialized actuary to evaluate the city's
funded status and future obligations. This analysis, completed September 2018, recommended committing
additional funds to CaIPERS and/or establishing a Section 115 Trust to mitigate some of the impact of the
projected increases. The city staff is currently analyzing the most fiscally prudent approach for the City
Council's consideration. It will be important for the city to continue to work with its employees to identify
measures that will ensure increases in ongoing compensation costs do not outpace revenue growth.
ii
As part of the city's ongoing commitment to maintain a balanced budget and adequate reserves, there is a
continued focus on cost recovery for recreation programs. The city reviewed and updated fees and policies
for the Poway Community Swim Center to increase cost recovery and implement best practices. The city also
increased water and wastewater rates in March 2019 to recover pass -through costs and fund the continued
proper maintenance of the utility infrastructure including necessary capital projects. At that time, direction
was provided by the City Council to city staff to pursue a cost -of -service study to evaluate different rate
structures and how these impact different classes of customers (e.g., residential, non-residential).
As a result of updating the Poway Road Specific Plan last year, the city executed a development agreement
for "Poway Commons," a mixed -use development with 97 market rate residential units, 44 affordable senior
apartments, including retail on the north and south sides of Poway Road. It also issued building and grading
permits for "The Outpost" mixed -use project with 53 apartments and 42,000 square feet of commercial
space. Building permits were issued for a new 4,584 square foot Chick-Fil-A restaurant on Poway Road.
A draft environmental impact report, specific plan application and related development plans and planning
permits were submitted and reviewed for "The Farm in Poway," a 118-acre specific plan proposed to include
160 residential homes, as well as agricultural, recreational and retail uses to revitalize private property that
once operated as a country club.
Several tenant improvements projects for General Atomics, the largest employer in the South Poway
Business Park, were approved, totaling over 120,000 square feet. Planning and grading permits were issued
for two tilt -up industrial buildings totaling 535,000 square feet in the park as well.
The City Council continues to support the preservation of open space by using its Habitat In -Lieu Fee Fund to
purchase additional land. An important part of Poway's rural image is defined by its natural environmental
features, including the mountains that surround it, the creeks that cross the valley floor, and its open space.
The city purchased two properties, totaling close to 59 acres, with the Habitat In -Lieu Fee Fund at a cost of
$490,000. The city was a co -applicant with the Trust for Public Lands on two grants that were used to acquire
162 acres of prominent open space, along with $125,000 from the Habitat In -Lieu Fee Fund. The City also
acquired three additional properties at no cost. The total open space acquired during FY2018-19 was over 345
acres.
Poway prides itself as the "city that volunteers." Volunteer rangers, ushers, docents, tour guides, teens, CERT
members and others contributed over 27,000 hours of service this past year. In addition, the County of San
Diego Sheriff's Senior Volunteer Patrol and its over 50 community members volunteered more than 16,000
hours to supplement law enforcement at events and incidents throughout the city.
The city continues to be recognized for exceptional community programming. The Winter Festival Special
Needs event received the California Parks and Recreation Society's Creating Community Award of Excellence.
This event gives special needs participants a safe, inclusive Winter Festival event to play together in the great
outdoors and builds their connections within the larger Poway community.
Poway was also recognized for its outstanding Information Technology governance and operation practices
with an Excellence in IT Practices Award by the Municipal Information Systems Association of California.
iii
MAJOR INITIATIVES
Reinvesting in the city's infrastructure remains a top priority. The city completed sixteen capital improvement
projects (CIPs) this fiscal year including the Community Park Electrical Upgrades project, Water Treatment
Plant Rehabilitation and Pump Station 1 Electrical Upgrades project, and rehabilitation of the Alta Mira
Reservoir. Another seven CIP projects are under construction, including Buehler Reservoir Rehabilitation and
the Espola Road Safety Improvements project. Eleven other projects are in the pre -construction phase with
another nine projects in various stages of design.
A large piece of the overall capital improvement program is the city's 10-year $18,000,000 water
infrastructure rehabilitation plan. The city begins the fifth year of the plan with three water projects under
construction, and another seven in various stages of design. These ten projects include security upgrades at
Poway Dam, three reservoir rehabilitation projects, and extensive upgrades at the city's Water Treatment
Plant with budgets totaling over $6,300,000.
Escrow closed in April 2019 for Villa de Vida, an affordable 54-unit multi -family rental housing development
for adults with disabilities. Poway Housing Authority worked with Villa de Vida and Mercy Housing California
to secure the tax credits needed to make this 64,545 square -foot project a reality. Construction began on
May 1, 2019.
In May 2018 the City approved a consultant agreement for the preparation of construction documents for the
new community center (Center) that will replace the aging buildings with a multi -use, multi -generational
facility at the same location (Community Park). The construction documents were completed in June 2019
and a notice inviting bids was advertised on June 6 and 13, 2019. The city intends to pay cash to build the
Center. The city staff was able to meet its goal of maintaining existing programming during the construction
process by ensuring that city programs found space at other city facilities and by assisting the Poway Senior
Center, a 501(c)(3) that operates out of the community center, with finding a temporary location allowing
them to continue providing services during construction.
The Poway Swim Center renovations were completed in Fall 2018 and included replacing the pool deck and
pool plaster, creating a toddler "splash pad" play space, remodeling the locker rooms, adding a new
administration building and update mechanical equipment. A memorial honoring America's service members
missing in action and prisoners of war was unveiled at the Poway Veterans Park on Veterans Day
(November 11, 2018).
The Public Works Department initiated a Proposition 218 ballot in April 2019 to adjust assessments in the
landscape maintenance district (LMD) for commercial properties in the South Poway Business Park.
Assessments for this area had not been increased since 1996. Because of limited funds, the LMD was unable
to keep up with rising costs and maintain the area as it had in the past. The ballot measure was successful
(55% voted for the increase) and 327 commercial properties were detached from the existing LMD and
annexed into a new one with a consumer price index (CPI) not to exceed 3 percent. The purpose of the CPI is
to keep the current service level and reinvest in landscaping and maintenance.
At the City Council's request, an LMD advisory group was formed in 2018 to work alongside city staff to move
forward a Proposition 218 ballot for two LMDs that cover landscaping along Twin Peaks and Espola Roads. A
2018 ballot in both districts was unsuccessful. The goal of the advisory committee is to develop a master
landscape plan, provide public outreach and a communication platform to help with a successful re -ballot.
The re -balloting process is slated for early 2021.
iv
The Fire Department replaced an aging fire engine designed for wildfire responses. The city now has a
specialized wildland fire apparatus at every fire station, improving the Fire Department's deployment to
vegetation fires within the city's jurisdiction.
Emergency preparedness in the event of a disaster remains a critical on -going initiative for Poway. The city
held a Community Emergency Response Team (CERT) academy resulting in the graduation of 23 community
members. To date, over 89 residents have been trained in care and sheltering. An important function of
emergency preparedness is coordination of disaster funding and grants submittals. During the year, the city
received over $42,000 in grant funding and $319,000 in FEMA reimbursement.
In FY2018-19, the Fire Department signed a contract with a new vendor for the pickup and disposal of
hazardous waste, including medical sharps containers and expired non -controlled medications. By adjusting
management of this program, the city was able to reduce its hazardous waste disposal fees by 99%, while
simultaneously increasing services provided by the vendor. The Fire Department also improved its
management and security of controlled medications and narcotics with the purchase of digital controlled
substances vaults. Located at each fire station and in all fire apparatus, this new system allows paramedics to
digitally inventory controlled substances and record the usage of controlled substances. These new vaults
include automated security notification capabilities and resulted in the discontinuation of paper
documentation and management.
The Finance and Human Resources Departments completed a multi -year implementation of the new
Enterprise Resource Planning (ERP) system with the rollout of the Budget Development, HR and Payroll
modules. These modules provide a central system for data entry, electronic approval, and reporting and
enhance information coordination across departments. Also included is an employee self-service web and
mobile application for time card entry, employee benefits/pay information and electronic paycheck
distribution. The Finance Department is also implementing Customer Connect, a user-friendly customer portal
for the city's water and wastewater customers. It will be available over smartphones, tablets, and computers
and provide customers a more efficient payment process. This system is expected to be implemented in the
latter half of FY2019-20.
INTERNAL FRAMEWORK
Management has established a comprehensive internal control framework that is designed to protect the
city's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of
the financial statements in conformity with generally accepted accounting principles. The internal control
structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The
concept of reasonable assurance recognizes that the costs of a control should not exceed the benefits likely
to be achieved and the valuation of costs and benefits requires estimates and judgements by management.
BUDGETARY CONTROLS
In addition to internal controls, the city maintains budgetary controls. The objective of these budgetary
controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved
by the City Council. Activities of the General Fund, Special Revenue Funds, and all other governmental funds,
are included in the annual appropriated budget.
The budget is arranged by department, division and fund and is presented by the City Manager to the five -
member Council -appointed Budget Review Committee. The Budget Review Committee provides the City
Council with a written review of the proposed budget. The review is presented, along with the City Manager's
proposed budget, to the City Council. The City Council then adopts the budget prior to the beginning of the
v
fiscal year, and it serves as the foundation for the city's financial planning and control. The budget is reviewed
at mid -year, and necessary adjustments are made to ensure that expenditures are not outpacing anticipated
revenues.
RELEVANT FINANCIAL POLICIES
The significant accounting policies of the city are described in the Notes to the Basic Financial Statements.
These accounting policies have been approved by the city's independent certified public accountant and are
in conformance with the recommendations of the American Institute of Certified Public Accountants and the
Governmental Accounting Standards Board.
ANNUAL AUDIT
The California Government Code requires general law cities, such as Poway, to be audited annually by
independent certified public accountants selected by the City Council. The goal of an independent audit is to
provide reasonable assurance that the financial statements of the city are free of material misstatements. This
requirement has been met and the auditor's independent report is included in this report.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Poway for its FY2017-18 CAFR. To be
awarded the certificate, the report must be easy to read and organized in an efficient manner with content
that conforms to program standards. Such a report must satisfy both generally accepted accounting principles
and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We
believe that our current report conforms to the program requirements, and we are submitting it to the GFOA
to determine its eligibility for the certificate.
ACKNOWLEDGEMENTS
I would like to extend my gratitude to the Finance Department for their professionalism and dedication which
has made the publication of this report possible. I would also like to thank the Mayor, City Council and City
Manager for their leadership and support in conducting the financial operations of the city in a responsible
manner consistent with the city's mission to protect and enhance the quality of life for present and future
generations alike.
Finally, I would like to acknowledge the hard work and dedication of all City of Poway employees as evidenced
by the long list of accomplishments and initiatives included in this transmittal letter.
Respectfully Submitted,
-L7
Aaron Beanan
Director of Finance
vi
CITY OF POWAY
Principal Officers
June 30, 2019
City Council
Mayor Steve Vaus
Deputy Mayor Dave Grosch
Council Members: Caylin Frank
Barry Leonard
John Mullin
City Manager
City Attorney
Assistant City Manager
Director of Finance
Director of Human Resources
Director of Development Services
Director of Public Works
Director Community Services
Director of Safety Services
City Clerk
Appointed Officials
Administrative Personnel
Chris Hazeltine
Alan Fenstermacher
Wendy Kaserman
Donna Goldsmith
Jodene Dunphy
Robert Manis
Michael Obermiller
Brenda Sylvia
Mark Sanchez
Faviola Medina
vii
CITY OF POWAY
ORGANIZATION CHART
June 30, 2019
Successor
Agency to the
Redeye to pme nt
Aga ncy
City Clerk
FIrianCe
1. F1rli+rc6
s. Call CAW Services
3. Informalio+n
Tech naloEly
4. Suppan St, MC el
0, CipeLnl M rl; rrdti
Residents
CRy Council
Planning Commissic»
Housing A Ut ho rity
Dity Manager
H Urnwl
ResouiVeS
1. Henan li.rrawiaxi
2. FHA INarwrpamwrt
Community
arvioes
1•1 I•; • 12
r
Economic
Development
Cleve lop men'
Services
Lour§' i1
PUbI I0
Work$
5afety
5.erMicn
1. LNsun9u Ici4 1. PYnrn" 1. Way IAtom Ulm Mom 1_ FireSupprassion
2, Lake Operation' 2. Marra Ins pmeIoi 2, Watnr Supply >. fire Pow4.1114 1
a_ Aguilar Conley 3_ CVEY Proloci 1 3_ &away PunrpIng & ]_ Par./modes
I. Pallonnin9 kin a. Land DIME.i%. n1 Wsposil A. Law Eniofertrea1
Cooler i. Engkippifig 4, WINN'OburlhiAen
5. Oki P atm Park In pedlim 3. 1YasitiwairrColIscllon
8. Library i, TratrlicEnginoofin 9 d, ileelalreedWeer
7_ heleValve 7. Mown Wale( 7_ Liginhurnak 41wriins
1Llrtiteii Ilimmpolibill 1. 9IriitM Uirdince
8. Conwni ilrRack & f♦waingPragrama 9, Ram Water SFlaad
iw. 5.0. NIminieleal4n Con#al
10. Vehicle 4Egrip,idain
11_ EnvIr nnorb ilRo irroi
12 Rarlik Trade; Lai14SCap4
IVlaintenerrae
ii Fsc•lssIlalnlinance
14. Spec4al Obt & Condarcla
0
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Poway
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2018
P ?iztlu.w'
Executive Director/CEO
ix
This page intentionally left blank.
x
Financial Section
This page intentionally left blank.
DavisFarr
CERTIFIED PUBLIC ACCOUNTANTS
City Council
City of Poway
Poway, California
Davis Farr LLP
2301 Dupont Drive I Suite 200 I Irvine, CA 92612
Main: 949.474.2020 I Fax: 949.263.5520
Independent Auditor's Report
Report on the 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 Poway, California, as of and for the year ended June 30, 2019, and the related
notes to the basic 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
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the 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 of Poway'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
Poway, California, as of June 30, 2019, and the respective changes in financial position and,
1
cash flows, thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, Budgetary Comparison Information, Schedules of
Changes in Net Pension Liability and Related Ratios, Last Ten Years - Miscellaneous and
Retirement Enhancement Plans, Schedules of Plan Contributions, Last Ten Years -
Miscellaneous, Safety, and Retirement Enhancement Plans, and Schedule of the City's
Proportionate Share of the Plan's Net Pension Liability and Related Ratios - Safety Plan, 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 of Poway's basic financial statements. The combining and
individual non -major fund financial statements, the introductory section, the budget to
actual schedules, and the statistical section are presented for purposes of additional analysis
and are not a required part of the basic financial statements.
The combining and individual non -major fund financial statements and budget to actual
schedules are the responsibility of management and were 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 combining and individual non -major fund
financial statements, and budget to actual schedules, are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The introductory section and the statistical section have not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 31, 2019 on our consideration of the City of Poway's internal control over
2
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 City of Poway's
internal control over financial reporting and compliance.
iscayr u-P
Irvine, California
December 31, 2019
3
This page intentionally left blank.
4
MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Poway (City) offers readers this narrative overview and analysis of the City's financial activities
for the fiscal year ended June 30, 2019. It should be read in conjunction with the accompanying letter of
transmittal beginning on page i and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
• The City's net position increased by $3.4 million or 1.4% to $236.9 million. The increase is a result of
the governmental activities increased by $3.5 million and the business -type activities decreased by
$0.1 million.
• The City's total revenues exceeded total expenses by $3.4 million. The total revenues, which included
program revenues, taxes, and other revenues was $97.1 million. The total expenses was $93.7 million.
• The Governmental Activities net position increased by $3.5 million or 2.1% to $173.9 million primarily
due to total revenue increased by $1.7 million and total expenses decreased by 1.7 million.
• The General Fund reported a net change in fund balance of $0.7 million or 1.1% increase to $66.4
million mainly due to higher than expected property and sales taxes coupled with lower than
anticipated expenditures.
• The General Fund actual revenues were more than the final budget by $1.5 million, while actual
expenditures were $22.6 million less than final budget. The expenditure variance is primarily
attributable to the Capital Outlay category, which accounted for $19.5 million of the variance.
• At the end of the fiscal year, the General Fund unassigned fund balance was $7.3 million or 14.4% of
total General Fund expenditures.
OVERVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)
The discussion and analysis provided here is intended to serve as an introduction to the City's basic
financial statements. The basic financial statements consist of three components: (1) government -wide
financial statements, which include the Statement of Net Position and the Statement of Activities. These
statements provide information about the activities of the City as a whole; (2) fund financial statements,
which describe how City services are financed in the short term as well as what resources are available
for future spending. Fund financial statements also report the City's operations in more detail than the
government -wide statements by providing information about the City's most significant funds; and (3)
notes to the basic financial statements. The report also includes supplemental information intended to
furnish additional detail to support the basic financial statements themselves.
The Statement of Net Position and the Statement of Activities (Government -wide)
The government -wide financial statements are designed to provide readers with a broad view of the City's
finances, in a manner similar to a private -section business.
The Statement of Net Position presents financial information on all of the City's assets, liabilities, and
deferred inflows/outflows of resources, with the difference reported as net position. Overtime, increases
or decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating. However, it is important to consider other nonfinancial factors, such as
changes in the City's property tax base, or condition of the City's roads, to accurately assess the overall
health of the City.
The Statement of Activities presents information showing how the City's net position changed during the
current 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, for some items, that will result in cash flows in future fiscal periods, (e.g., uncollected taxes and
earned but unused vacation leave).
5
Both of the government -wide financial statements mentioned above 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 include general government,
public safety, public works, development services, and community services, which are financed mostly by
property taxes, sales taxes, motor vehicle license fees and franchise fees. Whereas the business -type
activities include the water and sewer systems, which the City charges a fee to customers to cover all or
most of the cost of the services provided.
The government -wide financial statements include not only the City itself (known as the primary
government), but also the include the blending of two component units: the Poway Housing Authority
and the Poway Public Financing Authority. Although legally separate, these "component units" are
important because the City is financially accountable for them.
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
funds of the City can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
The fund financial statements provide detailed information about the most significant funds - not the City
as a whole. Some funds are required to be established by State law and by bond covenants. However,
management establishes many other funds that aid in the administration of resources for particular
purposes or to meet legal responsibilities associated with the usage of certain taxes, grants, and other
money. The City's three types of fund financial statements, which use different accounting approaches,
are explained below.
• Governmental funds — Most of the City's basic services are reported in governmental funds.
Governmental funds focus on how resources flow in and out with the balances remaining at year-end
that are available for spending. These funds are reported using an accounting method called modified
accrual, which measures cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-term view of the City's general government
operations and the basic services it provides. Governmental fund information shows whether there
are more or fewer financial resources that can be spent in the near future to finance the City's
programs. The relationship (or differences) between governmental activities (reported in the
Statement of Net Position and the Statement of Activities) and governmental funds is described
through the reconciliation in the Notes to the Basic Financial Statements, Note 1.
• Proprietary funds — When the City charges customers for the services it provides, these services are
generally reported in proprietary funds. These funds are reported using the full accrual accounting
method. Proprietary funds are reported in the same way that all activities are reported in the
Statement of Net Position and the Statement of Activities.
• Fiduciary funds - The City is the trustee, or fiduciary, for certain amounts held on behalf of developers,
property owners, and others. These fiduciary activities are reported in separate Statements of
Fiduciary Net Position and Changes in Fiduciary Net Position. The City is responsible for ensuring that
the assets are used for their intended purposes. Therefore, fiduciary activities are excluded from the
City's other financial statements because the assets cannot be used to finance the City's operations.
The City maintains two different types of fiduciary funds. The Agency Fund accounts for deposits held
in trust for specific purpose and the Private -Purpose Trust Fund account for the Successor Agency to
the Poway Redevelopment Agency.
6
Governmental
Activities
THE CITY AS A WHOLE
The City's analysis focuses on the City's net position (Table 1) and changes in net position (Table 2) of the
governmental and business -type activities.
Table 1
Summary of Net Position
(in thousands)
Business- Type
Activities
Total Primary
Government
2019 2018
Assets:
Current and
other assets $ 106,959
Capital assets 123,929
Total assets 230,888
Deferred Outflows
Liabilities:
Long-term
debt outstanding
Other liabilities
Net pension liability
Total liabilities
Deferred Inflows
Net position:
Net Investment in
capital assets
Restricted
Unrestricted
Total net position
8,434
2019 2018
$ 102,011 $ 41,574
121,518 31,143
223,529 72,717
10,532 1,250
13,920 14,782
7,187 5,456
43,324 42,622
64,431 62,860
1,022 837
112,261 108,495
22,034 20,626
39,574 41,243
2019 2018
$ 38,908 $ 148,533 $ 140,919
32,118 155,072 153,636
71,026 303,605
1,750 9,684
295 292
2,353 1,984
8,097 7,139
10,745 9,415
14,215
9,540
51,421
294,555
12,282
15,074
7,440
49,761
75,176 72,275
142 135 1,164 972
31,143
31,937
32,118
31,108
143,404
22,034
71,511
140,613
20,626
72,351
$ 173,869 $ 170,364 $ 63,080 $ 63,226 $ 236,949 $ 233,590
Analysis of net position
The net position of the primary government increased by $3.4 million in fiscal year 2019. The total assets
increased $9.0 million and total liabilities increased $2.9 million. Deferred outflows of resources
decreased $2.6 million and deferred inflows of resources increased $0.2 million.
The following analysis of governmental and business -type activities provides more detailed information
for these changes.
Governmental Activities
The net position of governmental activities increased by $3.5 million or 2.1% from $170.4 million to $173.9
million. The following is an explanation of the significant changes between fiscal years as shown in Table
1 above:
• Current and other assets increased $4.9 million or 4.9% principally due to an increase in cash and
investments.
• Capital assets increased $2.4 million or 2.0% (net of depreciation and additions) as detailed in Table
3. The increase is mainly a result of the land acquisitions for preservation of open space.
• Governmental long-term debt decreased $0.9 million. The decrease was attributable to scheduled
principal payments.
7
• Governmental other liabilities increased by $1.7 million or 31.7% mainly due to an increase of vendor
invoices received after the fiscal year ended and the accrual of payroll expenses.
• Pension related items including Deferred Outflows, Net Pension Liability, and Deferred Inflows, had a
net increase of $3.0 million or 9.1%.
• Net Investment in capital assets increased by $3.8 million or 3.5% primarily due to the additions of
land acquisitions for preservation of open space.
• Restricted net position increased by $1.4 million or 6.8%, primarily due to increases in drainage,
maintenance districts, streets and transportation with decreases in debt service, housing and other
purposes categories.
• Unrestricted net position, the part of net position that can be used to finance day-to-day operations
without constraints established by debt covenants or other legal requirements, decreased by $1.7
million, or 4.0% primarily due to normal operations.
The cost of all governmental activities this year was $59.9 million as shown on Tables 2 and 2.1 below. Of
this cost, $14.3 million was paid by program revenues, which consisted of $10.4 million from those who
directly benefited from the programs, $3.9 million from grant subsidies received from other governmental
organizations for both capital and operating activities, and $48.6 million was financed through general
revenues. Items of significance within Table 2 are described after the table.
Table 2
Changes in Net Position
(in thousands)
Governmental
Activities
Business -Type
Activities
Total Primary
Government
2019 2018 2019 2018 2019 2018
Revenues:
Program Revenues:
Charges for services $ 10,389 $ 9,836 $ 31,723 $ 34,070 $ 42,112 $ 43,906
Operating grants
and contributions 2,125 2,323 - - 2,125 2,323
Capital grants
and contributions 1,809 199 - 4 1,809 203
Total Program Revenues 14,323 12,358 31,723 34,074 46,046 46,432
General Revenues:
Property taxes 23,820 24,154
Sales tax 16,249 13,981
Other taxes 4,985 5,896
Investment & misc. 5,983 8,956
23,820 24,154
16,249 13,981
4,985 5,896
3,504 4,753
Total General Revenues
Total revenues
Expenses:
General government
Public safety
Public works
Development services
Community services
Interest & charges
Water
Sewe r
Total expenses
Change in net position
before transfers & others
Special item
Transfers
Change in net positon
after transfers & others
Net position - 7/1
Net position - 6/30
48,558 48,784
62,881 61,142
2,479
2,479
34,202
4,203
4,203
38,277
51,037 52,987
97,083 99,419
7,352 8,048 - 7,352 8,048
26,563 25,140 - - 26,563 25,140
13,032 15,818 - - 13,032 15,818
6,098 4,793 - - 6,098 4,793
6,445 7,373 - - 6,445 7,373
407 430 - - 407 430
24,027 25,503 24,027 25,503
9,799 8,798 9,799 8,798
59,897 61,602 33,826 34,301 93,723 95,903
2,984 (460) 376 3,976 3,360 3,516
26,204 - 26,204
522 427 (522) (427) -
3,506 26,171 (146)
170,363 144,192 63,226
3,549 3,360 29,720
59,677 233,589 203,869
$ 173,869 $ 170,363 $ 63,080 $ 63,226 $ 236,949 $ 233,589
8
Fiscal Year 2019
Governmental Activities
(Graphic representation of Table 2 in percentages)
Sources of Revenue
Capital grants
2.9%
Operating grants
3.4%
i'
Charges for
services
16.5%
Program Expenses
evelopment
services
10.2%
Public works
21.8%
Interest &
Charges
0.7 %
Community
services
10.8%
Revenues
Total revenues increased by $1.7 million or 2.8%. The following is an explanation of the changes between
fiscal years as shown in Table 2 above:
• The total program revenues increased by $2.0 million or 15.9%, mainly due to $1.5 million grants
received from the State of California to purchase the land for preservation of open space.
• The total general revenues remained relatively the same, with a minor decrease of $0.2 million or
0.5%. Sales tax increased by $2.3 million or 16.2% mainly due to better performances by two
taxpayers. The other taxes decreased by $0.9 million or 15.5%, and the investment and miscellaneous
revenues decreased by $1.2 million or 26.3%.
Expenses
Total expenses decreased by $1.7 million or 2.8%. The following is an explanation of the significant
changes between fiscal years as shown in Table 2 above:
• The public safety expenses increased by $1.4 million or 5.7%. The law enforcement contract with the
County of San Diego and pension costs accounted for the majority of the increase.
• The public works expenses decreased by $2.8 million or 17.6%. A very minor portion of the decrease
is a result of the transfer of four meter -reading staff from the Public Works department to the
Customer Services Division to create better efficiency. The remainder of the decrease is mainly due
to one-time adjustments made in the prior fiscal year that were not repeated in this fiscal year.
• The development services expenses increased by $1.3 million or 27.2%. The increase is mainly due to
one-time adjustments made in the prior fiscal year that were not repeated in this fiscal year.
9
Net Cost of Governmental Activities
The City's programs include: General government, Public safety, Public works, Development services and
Community services. Each program's net cost (total cost less total revenues generated by the activities)
is presented on Table 2.1. The net cost shows the extent to which the general taxes support each of the
City's programs.
Table 2.1
Net Cost of Governmental Activities
(in thousands)
Total Cost
of Services
Program
Revenues
Net Cost
of Services
2019 2018 2019 2018 2019 2018
General government $ 7,352
Public safety 26,563
Public works 13,032
Development services 6,098
Community services 6,445
Interest and fiscal charges 407
Totals
$ 30, 000
$20,000
$10, 000
so
-$10, 000
-$20,000
-$30,000
$ 59,897
$ 8,048 $
25,140
15,818
4,793
7,373
430
$ 61,602 $
641
2,484
3,220
4,588
3,390
$ 960
2,723
2,855
2,875
2,944
$ (6,711)
(24, 079)
(9,812)
(1,510)
(3,055)
(407)
$ (7,088)
(22,417)
(12,963)
(1,918)
(4,429)
(430)
14,323 $ 12,357 $ (45,574) $ (49,245)
Fiscal Year 2019
Total Cost of Services, Program Revenues and Net Cost of Services
Governmental Activities
(in thousands)
General
government
Public
safety
Public
works
Development
services
Community Interest and
services fiscal charges
■ Total Cost of Services ■ Program Revenues ■ Net Cost of Services
Total resources available during the year to finance Governmental activities were $233.2 million, which
consisted of Net Position at July 1, 2018 of $170.4 million, Program Revenues of $14.3 million, General
revenues of $48.6 million, and Transfers of $0.5 million. Total Governmental expenditures during the year
were $59.9 million. The Governmental Net Position resulted in a $3.5 million increase, ended with $173.9
million at June 30, 2019.
10
Business -Type Activities
The net position of business -type activities decreased by $0.1 million or 0.2% from $63.2 million to $63.1
million. As shown in Table 2.2 below, Program Revenues were $31.7 million, while the cost of providing
all business -type activities this year was $33.8 million, resulting in a decrease of $2.1 million. However,
the decrease is offset by the net increase of $2.0 million from investment & miscellaneous revenues and
transfers, as shown in Table 2 above, resulted in a net position decrease of $0.1 million. The following is
an explanation of the changes between fiscal years as shown in Table 2 above.
Water Activities
The water total operating revenues decreased by $4.5 million or 15.7% primarily attributed to decreases
in demand, and the temporary drought recovery surcharge that was implemented while revenues were
lower due to decreased consumption, ended in December 2018 as scheduled. The water total operating
expenses were decreased by $1.5 million or 5.7% mainly related to the lower water demand.
Sewer Activities
The sewer total operating revenues decreased by $0.4 million or 4.6% due to the reduction in Other
revenues. The sewer total operating expenses increased by $1.0 million or 11.4% mainly as a result of
increase in maintenance and operations costs.
Table 2.2
Net Cost of Business -Type Activities
(in thousands)
Total Cost Program Net Cost
of Services Revenues of Services
2019 2018 2019 2018 2019 2018
Water $ 24,027 $ 25,503 $ 22,984 $ 25,586 $ (1,043) $ 83
Sewer 9,799 8,798 8,737 8,488 (1,062) (310)
Totals $ 33,826 $ 34,301 $ 31,721 $ 34,074 $ (2,105) $ (227)
FUND HIGHLIGHTS
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$o
-$5,000
Fiscal Year 2019
Total Cost of Services, Program Revenues and Net Cost of Services
Business -Type Activities
(in thousands)
Water Sewer
• Total Cost of Services ■ Program Revenues • Net Cost of Services
11
General Fund
Revenue
Actual revenues compared favorably to the final budget, resulting in a $1.5 million positive variance
(excluding other financing sources). The major variances were in Taxes, Charges for services, and Use of
money and property. Actual Taxes revenue was $0.8 million higher than budgeted primarily due to higher
than anticipated Sales Tax revenue of $0.7 million and Property Tax revenue of $0.4 million offset by $0.2
million reduction from the Redevelopment Property Tax Trust Fund. Charges for services revenue was
less than budget by $0.3 million mainly as a result of various demands for services were lower than
anticipated. Use of money and property had a favorable variance of $1.0 million, however, the variance
was attributable to the unrealized gains.
Expenditures
The final appropriations for the City's General Fund expenditures at year-end were $22.6 million more
than actual expenditures (excluding other financing uses). The largest component of the budget to actual
variance, $19.5 million, was in the Capital Outlay category, which is mainly attributable to previously
approved projects, such as a new community center and the street improvement project, that have not
yet been completed. The remaining $3.1 million positive variance is related to the operations of the
various governmental functions. Specifically, savings of about $1.2 million in salaries and benefits were
achieved as a result of 35 vacancies that occurred during various parts of the fiscal year. The remaining
$1.9 million positive variance was resulted from not replacing all the vehicles identified for replacement,
the partial closure of the community swimming center in the beginning of the fiscal year, the City of San
Diego bill credit for previous overcharges in the Fire Dispatch Service contract, and several park and
playground refurbishment projects not completed prior to the fiscal year ended.
Housing Authority Special Revenue Fund
The City of Poway created its Housing Authority during fiscal year 2010-11 and transferred all of the Poway
Redevelopment Agency's housing assets to the Housing Authority. As a result of ABX1 26, the Housing
Authority was able to retain its capital assets and any related income, but was required to transfer its
liquid assets as of February 1, 2012 to the Successor Agency. With the passage of subsequent legislation,
AB 1484, twenty -percent of the City's advances to the former Poway Redevelopment Agency were
transferred to the Housing Authority. The Housing Authority's expenditures exceed revenues by $571,743
for operations. Revenues were primarily made up of lease payments from properties owned by the
Housing Authority and residual payments from its non-profit partners that own and operate affordable
housing projects. Expenditures for general government continued to be minimal as the Housing Authority
continues to explore how to best use these funds to improve the quantity and quality of affordable
housing in the City. The Housing Authority made a $700,000 loan to the developer for the Villa de Vida
affordable housing project.
FIDUCIARY FUNDS
Successor Agency to the City of Poway Redevelopment Agency
The provisions of ABX1 26 include the creation of the Successor Agency to the Poway Redevelopment
Agency effective February 1, 2012. All balances previously associated with the Poway Redevelopment
Agency were transferred to the Successor Agency. A seven -member Oversight Board was created to
oversee the Successor Agency. The Successor Agency is accounted for as a Private -Purpose Trust Fund and
therefore both capital assets and long-term liabilities are included in the fund. The Successor Agency must
prepare Recognized Obligation Payment Schedules (ROPS) for review and approval by its Oversight Board,
as well as the State Controller's Office, the State Department of Finance, and the County of San Diego.
Through this process, the Successor Agency is to receive sufficient funding (formerly the Poway
Redevelopment Agency's tax increment revenue) to pay for the approved items on the ROPS. Any funds
in excess of ROPS requirements are distributed to the appropriate taxing agencies based on each agency's
pro rata share of the one -percent property tax.
12
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The capital assets of the City are those assets that are used in the performance of City functions. Capital
Assets include land, buildings, facility improvements, infrastructure, equipment and vehicles. Total capital
assets, net of depreciations, had an increase of $1.4 million. The increase is mainly due to the land
acquisitions for preservation of open space.
The net $5.6 million increase in Improvements was primarily due to capitalization of two Capital
Improvement Program (CIP) projects. One was the $3.6 million Poway Swim Center Renovations project
completed in Fall 2018. The other was a partially complete Espola Road Safety Improvements project at
a cost of $2.6 million. (See Table 3 below & Notes 4 and 17 to the Basic Financial Statements.)
Table 3
Capital Assets
(Net of Depreciation)
(in thousands)
Governmental Business -Type
Activities Activities Fiduciary Total
2019 2018 2019 2018 2019 2018 2019 2018
Land $ 43,724 $ 40,396 $ 77 $ 77 $ 2,865 $ 2,865 $ 46,666 $ 43,338
Buildings 25,359 26,678 1,808 2,274 - 27,167 28,952
Improvements 9,399 3,392 27,268 27,646 36,667 31,038
Infrastructure 38,598 41,759 38,598 41,759
Equip&Vehicles 5,821 4,677 1,223 1,165 7,044 5,842
Construction-in-Prog 1,028 4,616 767 956 1,795 5,572
Totals $ 123,929 $ 121,518 $ 31,143 $ 32,118 $ 2,865 $ 2,865 $ 157,937 $ 156,501
Debt
At year-end, the City had $13.1 million in Governmental debt, $0.3 million in Business -Type debt, and
$145.6 million in Fiduciary debt (Table 4). The overall decrease in bond balances was due to scheduled
principal payments and premium/discount amortizations. The decreased Loans Payable balance was
attributable to the forgiven outstanding balance of the Owner Participation agreement with AZ Poway,
LLC (dba Mossy Nissan) on the fifteenth year. The total Compensated Absences increase was a result of
the normal course of operations. (See Table 4 below & Note 5 to the Basic Financial Statements.)
Table 4
Outstanding Debt
(in thousands)
Governmental Business -Type
Activities Activities Fiduciary Total
2019 2018 2019 2018 2019 2018 2019 2018
Tax Allocation Bonds $ - $ - $ - $ - $ 145,646 $ 154,505 $ 145,646 $ 154,505
Certificates of Participation 12,385 13,196 - - 12,385 13,196
Loans Payable - - 3,339 - 3,339
Compensated Absences 1,535 1,586 295 292 1,830 1,878
Totals $ 13,920 $ 14,782 $ 295 $ 292 $ 145,646 $ 157,844 $ 159,861 $ 172,918
13
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
In considering the update of the City Budget for FY2019-20, the City Council and management anticipated
the growth in General Fund revenues to not keep pace with the growth in expenditures. This is due in
large part to rising pension costs, as well as rising law enforcement costs. Property tax is expected to
increase moderately. Sales tax revenue is projected to decline slightly, which can be attributed to a slightly
slowing economy, as well as potential issues associated with the recent transfer of the State Sales Tax
reporting function from the State Board of Equalization to the California Department of Tax and Fee
Administration (CDTFA).
The adopted FY2019-20 budget was balanced. For General Fund budget, revenues were projected to be
$49.5 million and expenditures were projected to be slightly less, at $49.0 million. However, at the time
of the budget adoption, the memoranda of understanding between the City and the Poway Firefighters'
Association (Safety) and the Teamster Local 911 (Non -Safety) were both due to expire on June 30, 2019.
Therefore, the proposed budget did not include any across the board salary increase for either the
represented (Safety and Non -Safety) employees or unrepresented (Management/Confidential)
employees.
Aside from the General Fund, the other budget activity of note concerns the City's Water and Sewer
Funds. The Water Fund is being closely monitored because of the significant state-wide water
conservation efforts over the past several years. City staff is concerned about future pressure on water
rates including new legislation signed by the California Governor that establishes a 55-gallons per capita
daily (GPCD) indoor water use standard, that decreases to 50 GPCD beginning January 1, 2030. Additional
state regulations as well as future usage patterns within Poway, is expected to have an impact on water
rates going forward.
The FY2019-20 sewer rates do not fully recover the operating and capital costs of sewer operations.
Additionally, as a member of the Metro Wastewater Joint Powers Authority, it is expected that the
majority of the Sewer Fund's current fund balance will be needed for Poway's share of the Pure Water
Program. One of the benefits of the Pure Water Program is to divert sewage flow from the Point Loma
Treatment Plant which would lower the City's sewer treatments costs. Over the next several years, a
portion of these reserves will be used to fund Poway's portion of this program. The fund is continually
analyzed to ensure its long-term stability.
Based on the challenges facing the water and sewer funds, the City Council directed city staff to initiate a
new water and sewer cost -of -service study during the 2019 rate setting process. City staff held a series of
public workshops in the Fall of 2019, during which the City Council and members of the public had an
opportunity to review and comment on different rate structure options prior to the City Council making a
final selection for the 2020 rate setting process. The goals of the study are to help ensure compliance with
the law, ensure each rate payer class is paying their proportionate share of the water and sewer costs,
and ensure the financial sustainability of the Water and Sewer Funds.
CONTACTING THE CITY'S FISCAL MANAGEMENT
This financial report is designed to provide the City's citizens, taxpayers, customers, investors, and
creditors with a general overview of the City's finances and to show the City's fiduciary responsibility for
the funds it receives. If you have questions about this report or need additional financial information,
contact the City's Finance Department, at the City of Poway, 13325 Civic Center Drive, Poway, California
92064 or go online at http://www.poway.org.
14
BASIC FINANCIAL STATEMENTS
This page intentionally left blank.
16
GOVERNMENT -WIDE
FINANCIAL STATEMENTS
CITY OF POWAY
Statement of Net Position
June 30, 2019
Primary Government
Governmental Business -Type
Activities Activities
ASSETS
Total
Current assets:
Cash and investments (note 2) $ 83,621,726 30,961,201 114,582,927
Cash and investments with fiscal agents (note 2) 624,154 624,154
Receivables:
Taxes 3,570,854 3,570,854
Accounts 750,981 5,272,999 6,023,980
Interest 994,407 - 994,407
Due from other governments 538,234 538,234
Prepaid items 51,342 51,342
Land held for resale 5,367,000 - 5,367,000
Inventories 127,080 3,507,391 3,634,471
Total current assets 95,645,778 39,741,591 135,387,369
Noncurrent assets:
Notes receivable
Internal balances
Loans to the Successor Agency to the
Poway Redevelopment Agency
Loans to other governments
Capital assets:
Nondepreciable assets (note 4)
Depreciable assets, net (note 4)
Total capital assets
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding of debt
Pension related (note 6)
10,005,226
(51,006)
1,359,619
44,752,953
79,175,700
123,928,653
135,242,492
230,888,270
161,095
8,273,401
51,006
1,695,258
85,433
843,944
30,299,355
10,005,226
3,054,877
85,433
45,596,897
109,475,055
31,143,299 155,071,952
32,974,996 168,217,488
72,716,587 303,604,857
1,249,677
161,095
9,523,078
Total deferred outflows of resources 8,434,496 1,249,677 9,684,173
See accompanying notes to financial statements
(Continued)
18
CITY OF POWAY
Statement of Net Position
June 30, 2019
(Continued)
Primary Government
Governmental Business -Type
Activities Activities
LIABILITIES
Current liabilities:
Accounts payable 5,206,637
Accrued liabilities 1,538,481
Accrued interest payable 190,385
Deposits -
Unearned revenue 252,241
Long-term debt - due within one year (note 5) 2,364,066
Total current liabilities 9,551,810
Noncurrent liabilities:
Long-term debt - due in more than one year (note 5)
Net pension liability (note 6)
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related (note 6)
NET POSITION
11,556,033
43,323,616
54,879,649
64,431,459
1,022,203
Net investment in capital assets 112,260,900
Restricted for:
Drainage 3,357,386
Fire protection 159,084
Grants 231,048
Housing 2,358,859
Maintenance districts 8,453,934
Other purposes 2,085,051
Parks and recreation 876,723
Streets 3,007,857
Transportation 1,504,280
Total restricted
Unrestricted
Total net position
1,918,659
193,065
156,955
84,024
295,290
Total
7,125,296
1,731,546
190,385
156,955
336,265
2,659,356
2,647,993 12,199,803
8,096,731
11,556,033
51,420,347
8,096,731 62,976,380
10,744,724 75,176,183
141,682 1,163,885
31,143,299
143,404,199
3,357,386
159,084
231,048
2,358,859
8,453,934
2,085,051
876,723
3,007,857
1,504,280
22,034,222 - 22,034,222
39,573,982
$ 173,869,104
31,936,559 71,510,541
63,079,858 236,948,962
See accompanying notes to financial statements
19
CITY OF POWAY
Statement of Activities
Year Ended June 30, 2019
Program Revenues
Operating Capital Total
Charges for Contributions Contributions Program
Functions/Programs Expenses Services and Grants and Grants Revenues
Primary government:
Governmental activities:
General government
Public safety
Public works
Development services
Community services
Interest and fiscal charges
$ 7,352,494 165,049
26,562,602 1,810,431
13,031,776 3,157,508
6,097,846 2,175,062
6,445,379 3,081,321
407,214 -
475,999
673,458
62,258
913,005
641,048
2,483,889
3,219,766
1,500,000 4,588,067
308,484 3,389,805
Total governmental activities 59,897,311 10,389,371 2,124,720 1,808,484 14,322,575
Business -type activities:
Water 24,026,914 22,984,400 - - 22,984,400
Sewer 9,798,612 8,737,411 - - 8,737,411
Total business -type activities 33,825,526 31,721,811 - - 31,721,811
Total primary government $ 93,722,837 42,111,182 2,124,720 1,808,484 46,044,386
See accompanying notes to financial statements
20
CITY OF POWAY
Statement of Activities
Year Ended June 30, 2019
Functions/Programs
Primary government:
Net (Expense) Revenue and
Changes in Net Position
Governmental Business -type
Activities Activities
Total
Governmental activities:
General government $ (6,711,446) - (6,711,446)
Public safety (24,078,713) - (24,078,713)
Public works (9,812,010) - (9,812,010)
Development services (1,509,779) - (1,509,779)
Community services (3,055,574) - (3,055,574)
Interest and fiscal charges (407,214) - (407,214)
Total governmental activities
(45,574,736) - (45,574,736)
Business -type activities:
Water - (1,042,514) (1,042,514)
Sewer - (1,061,201) (1,061,201)
Total business -type activities - (2,103,715) (2,103,715)
Total primary government (45,574,736) (2,103,715) (47,678,451)
General revenues:
Taxes:
Property taxes 23,819,845 - 23,819,845
Sales tax 16,248,747 - 16,248,747
Transient occupancy taxes 674,230 - 674,230
Franchise taxes 1,601,759 - 1,601,759
Other taxes 2,709,246 - 2,709,246
Total taxes 45,053,827 - 45,053,827
Investment earnings 2,267,414 1,144,612 3,412,026
Miscellaneous 1,237,072 1,334,723 2,571,795
Transfers in (out) 522,111 (522,111) -
Total general revenues and transfers 49,080,424 1,957,224 51,037,648
Change in net position 3,505,688 (146,491) 3,359,197
Net position, beginning of year 170,363,416 63,226,349 233,589,765
Net position, end of year $ 173,869,104 63,079,858 236,948,962
See accompanying notes to financial statements
21
This page intentionally left blank.
22
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
CITY OF POWAY
Balance Sheet
Governmental Funds
June 30, 2019
Special Revenue
Fund Total
Housing Non -major Total
General Authority Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments $ 50,495,097
Receivables:
Taxes 3,540,647
Notes 10,005,226
Accounts 646,603
Interest 992,359
Due from other funds (note 3) 182,241
Due from other governments 220,390
Prepaid items 51,342
Land held for resale 5,367,000
Inventories, at cost 127,080
Advances to fiduciary funds
Cash and investments with
fiscal agents
Total assets
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds (note 3)
Unearned revenue
Total liabilities
1,601,381
27,599
610,976
$ 71,627,985 2,239,956
$ 3,334,195
1,459,242
312,433
10,616
29,636
5,105,870 40,252
20,552,142
30,207
76,779
2,048
317,844
748,643
624,154
72,648,620
3,570,854
10,005,226
750,981
994,407
182,241
538,234
51,342
5,367,000
127,080
1,359,619
624,154
22,351,817 96,219,758
1,310,928
65,415
312,147
222,605
4,655,739
1,524,657
624,580
252,241
1,911,095 7,057,217
Deferred inflows of resources:
Unavailable revenue 164,683 81,792 246,475
Total deferred inflows
of resources 164,683 - 81,792 246,475
FUND BALANCES
Nonspendable 15,550,648
Restricted -
Committed 20,961,853
Assigned 22,536,818
Unassigned 7,308,113
Total fund balances
Total liabilities, deferred
inflows of resources and
fund balances
2,199, 704
66,357,432 2,199,704
$ 71,627,985 2,239,956
20,391,215
(32,285)
15,550,648
22,590,919
20,961,853
22,536,818
7,275,828
20,358,930 88,916,066
22,351,817 96,219,758
See accompanying notes to financial statements
25
CITY OF POWAY
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Position
June 30, 2019
Total Fund Balances - Total Governmental Funds $ 88,916,066
Amounts reported for governmental activities in the Statement of Net
Position were different because:
Capital assets used in governmental activities were not current financial
resources and, therefore, were not reported in the funds.
Non -depreciable
Depreciable, net of accumulated depreciation
Deferred losses on refunding of debt did not require current financial
resources but were deferred and subject to capitalization and amortization
on the Government -Wide Statement of Net Position.
Deferred inflows and outflows of resources related to pensions have not been
reported in the governmental funds:
Pension related deferred outflows of resources (net of $100,575 reported in
Internal Service Fund)
Pension related deferred inflows of resources (net of $11,309 reported in
Internal Service Fund)
Long-term liabilities were not due and payable in the current period and
therefore were not reported in the governmental funds.
Long-term liabilities - due within one year
Long-term debt
Compensated absences (net of $30,674 reported in Internal Service Fund)
Long-term liabilities - due in more than one year
Long-term debt
Pension related (net of $619,246 reported in Internal Service Fund)
Interest payable on long-term debt did not require current financial resources.
Therefore, interest payable was not reported as a liability in the Governmental
Funds Balance Sheet.
Unavailable revenues recorded in governmental fund financial statements
resulting from activities in which revenues were earned but funds were not
available were recognized as revenues in the Government -Wide Financial
Statements.
Internal service funds were used by management to charge the costs of certain
activities to individual funds. The assets and liabilities of the internal service
funds were included in governmental activities in the Government -Wide
Statement of Net Position.
$ 44,752,953
79,175,700
8,172,826
123,928,653
161,095
(1,010,894) 7,161,932
(829,512)
(1,503,880)
(11,556,033)
(42,704,370)
(56,593,795)
(190,385)
246,475
10,239,063
Net position of governmental activities $ 173,869,104
See accompanying notes to financial statements
26
CITY OF POWAY
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2019
Special Revenue
Fund Total
Housing Non -major Total
General Authority Governmental Governmental
Fund Fund Funds Funds
REVENUES
Taxes $ 39,050,341 - 5,997,874 45,048,215
Licenses and permits 636,007 - - 636,007
Intergovernmental 740,726 - 1,800,773 2,541,499
Charges for services 4,346,688 48,259 - 4,394,947
Fines and forfeitures 174,431 - - 174,431
Use of money and property 1,652,609 84,350 901,593 2,638,552
Developer fees 3,031,986 - 1,225,656 4,257,642
Assessments levied - - 1,913,839 1,913,839
Other revenues 212,951 67,871 322,321 603,143
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Development services
Community services
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES
(USES)
Transfers in (note 3)
Transfers out (note 3)
49,845,739 200,480
6,157,824
25, 092,171
4,401,878
4,977,009
5,834,051
4,148,024
8,160
764,063
50,610,957 772,223
(765,218) (571,743)
2,808, 242
(1,323,909)
12,162,056 62,208,275
154,877
6,005,454
3,101, 833
790,000
416,310
6,165, 984
25, 247,048
10,407,332
5,741,072
5,834,051
7,249,857
790,000
416,310
10,468,474 61,851,654
1,693,582 356,621
1,591, 304
(780,124)
4,399, 546
(2,104,033)
Total other financing
sources (uses) 1,484,333 - 811,180 2,295,513
Net change in fund balance 719,115 (571,743) 2,504,762 2,652,134
Fund balances, beginning of year 65,638,317 2,771,447 17,854,168 86,263,932
Fund balances, end of year $ 66,357,432 2,199,704 20,358,930 88,916,066
See accompanying notes to financial statements
27
CITY OF POWAY
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2019
Net change in fund balances - total governmental funds $ 2,652,134
Amounts reported for governmental activities in the Statement of Activities were
different because:
Governmental funds report capital outlay as expenditures. However, in the
Government -Wide Statement of Activities, the cost of those assets will be
allocated over their estimated useful lives as depreciation expense.
Capital asset expenditures
Depreciation expense
Loss due to disposition of capital assets
The issuance of long-term debt provides current financial resources to governmental
funds, while the repayment of the principal of long-term debt consumes the
current financial resources of governmental funds. Neither transaction, however,
has any effect on net position. Also, governmental funds report the
effect of premiums, discounts, and similar items when the debt is first
issued, whereas these are deferred and amortized in the statement of activities.
Principal payments on long-term debt
Changes in pension related items
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
Change in compensated absences
Change in interest expense on long term debt
Amortization of deferred loss on bond refunding
Amortization of bond premium 2005 Certificates of Participation
Amortization of bond premium 2012 Certificates of Participation
Revenues in the Government -Wide Statement of Activities that did not provide
current financial resources are not reported as revenues in the funds.
The Internal service fund was used by management to charge the costs of certain
activities, such as insurance and fleet management, to individual funds. The net
revenue of the internal service fund was reported with governmental activities.
$ 8,131,703
(5,646,346)
(74,488)
790,000
(2,841,633)
53,111
9,096
(11,933)
2,978
17,454
2,410,869
(2,051,633)
70,706
208,779
214,833
Change in net position of governmental activities $ 3,505,688
See accompanying notes to financial statements
28
This page intentionally left blank.
29
PROPRIETARY FUND
FINANCIAL STATEMENTS
CITY OF POWAY
Statement of Net Position
Proprietary Funds
June 30, 2019
Water
Governmental
Activities -
Internal Service
Sewer Total Fund
ASSETS
Current assets:
Cash and investments $ 10,771,252 20,189,949 30,961,201
Receivables:
Accounts 3,856,758 1,416,241 5,272,999
Inventories 3,481,860 25,531 3,507,391
Due from other funds 31,346 19,660 51,006
Total current assets
18,141,216 21,651,381
10,973,106
391,333
39,792,597 11,364,439
Noncurrent assets:
Advances to the Successor Agency to the
Poway Redevelopment Agency 1,173,173 522,085 1,695,258
Due from other governments 85,433 - 85,433
Capital assets:
Nondepreciable 767,147 76,797 843,944
Depreciable 62,322,288 36,542,262 98,864,550
Less accumulated depreciation (43,346,387) (25,218,808) (68,565,195)
Total net capital assets 19,743,048 11,400,251 31,143,299
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Pension related items
21,001,654 11,922,336 32,923,990
39,142,870 33,573,717 72,716,587
1,093,729 155,948
LIABILITIES
Current liabilities:
Accounts payable 1,811,464
Accrued liabilities 165,473
Deposits 156,955
Unearned revenue 58,230
Compensated absences due within one year 255,777
Total current liabilities
Noncurrent liabilities:
Net pension liability
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related items
107,195
27,592
25,794
39,513
2,447,899 200,094
7,021,887 1,074,844
7,021,887 1,074,844
9,469,786 1,274,938
123,815 17,867
11,364,439
1,249,677 100,575
1,918,659
193,065
156,955
84,024
295,290
550,898
13,824
30,674
2,647,993 595,396
8,096,731 619,246
8,096,731 619,246
10,744,724 1,214,642
141,682 11,309
NET POSITION
Net investment in capital assets 19,743,048 11,400,251 31,143,299
Unrestricted 10,899,950 21,036,609 31,936,559
Total net position
$ 30,642,998 32,436,860
10,239,063
63,079,858 10,239,063
See accompanying notes to financial statements
31
CITY OF POWAY
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
Year Ended June 30, 2019
Water
Governmental
Activities -
Internal Service
Sewer Total Fund
OPERATING REVENUES
Charges for services $ 22,902,385 8,416,676 31,319,061
Connection fees 82,015 320,735 402,750
Other 1,268,966 65,757 1,334,723
Total operating revenues 24,253,366 8,803,168 33,056,534
OPERATING EXPENSES
Personnel services 5,253,694 798,545 6,052,239
Maintenance and operations 3,386,810 7,913,247 11,300,057
Administrative expenses 513,587 - 513,587
Cost of purchased water 13,280,941 - 13,280,941
Depreciation 1,591,882 1,086,820 2,678,702
Total operating expenses 24,026,914 9,798,612 33,825,526
Operating income 226,452 (995,444) (768,992)
NONOPERATING REVENUES
(EXPENSES)
Interest revenue
Gain on sale of property
Other nonoperating revenue
Total nonoperating revenues
(expenses)
Income before transfers
378,093
766,519 1,144, 612
378,093 766,519 1,144,612
604,545 (228,925) 375,620
TRANSFERS
Transfers in 20,657 10,481 31,138
Transfers out (368,998) (184,251) (553,249)
Total transfers (348,341) (173,770) (522,111)
Change in net position 256,204 (402,695) (146,491)
Net position, beginning of year 30,386,794 32,839,555 63,226,349
Net position, end of year $ 30,642,998 32,436,860 63,079,858
See accompanying notes to financial statements
3,139,034
3,139,034
481,495
1,133,138
1,614, 633
1,524,401
300,438
160,265
3,131
463,834
1,988,235
4,226
(1,777,628)
(1,773,402)
214,833
10,024,230
10,239,063
32
Cash flows from operating activities:
Cash received from customers
Cash received from interfund charges
Cash paid to employees for services
Cash paid to suppliers for goods or services
Other
Net cash provided by
operating activities
CITY OF POWAY
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2019
Governmental
Activities -
Internal Service
Water Sewer Total Fund
$ 24,064,352 8,714,215 32,778,567
(3,961,517) (624,542) (4,586,059)
(17,221,186) (7,869,728) (25,090,914)
1,268,966 65,757 1,334,723
4,150,615 285,702 4,436,317
3,139, 034
(349,353)
(725,926)
2,063,755
Cash flows from noncapital financing
activities:
Loans to other governments 64,013 705,775 769,788 -
Loan repayment to the Successor Agency 87,310 41,592 128,902 -
Due to (from) other funds - - - -
Advances (to) from other funds - - -
Other nonoperating revenues - - - 3,131
Cash received from other funds 22,201 225,812 248,013 443,626
Cash paid to other funds (906,620) (184,251) (1,090,871) (2,168,961)
Net cash used for
noncapital financing activities (733,096) 788,928 55,832 (1,722,204)
Cash flows from capital and related
financing activities:
Acquisition of capital assets (1,652,764) (51,173) (1,703,937)
Proceeds from sale of capital assets - - - 160,265
Net cash provided by (used for) capital
and related financing activities (1,652,764) (51,173) (1,703,937) 160,265
Cash flows from investing activities:
Interest income 378,093 766,519 1,144,612 300,438
Net cash provided by
investing activities 378,093 766,519 1,144,612 300,438
Net increase in cash and
investments 2,142,848 1,789,976 3,932,824 802,254
Cash and investments, beginning of year 8,628,404 18,399,973 27,028,377 10,170,852
Cash and investments, end of year $ 10,771,252 20,189,949 30,961,201 10,973,106
See accompanying notes to financial statements
33
City of Poway
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2019
(Continued)
Water
Governmental
Activities -
Internal Service
Sewer Total Funds
Reconciliation of operating income
to net cash provided by operating activities:
Operating income $ 226,452 (995,444) (768,992) 1,524,401
Adjustments to reconcile operating income
to net cash provided by
operating activities:
Depreciation 1,591,882 1,086,820 2,678,702
(Increase) decrease in assets:
Accounts receivable 1,054,975 (18,597) 1,036,378
Inventories (342,377) (4,759) (347,136)
Deferred outflows - pension related 412,638 87,874 500,512 23,205
Increase (decrease) in liabilities:
Accounts payable 291,913 42,014 333,927 405,751
Accrued liabilities 10,616 6,264 16,880 1,461
Compensated absences 2,416 458 2,874 1,960
Net pension liability 872,311 85,981 958,292 106,083
Unearned revenue (9,777) (4,599) (14,376) -
Deposits 32,338 - 32,338 -
Deferred inflows - pension related 7,228 (310) 6,918 894
Net cash provided by
operating activities $ 4,150,615 285,702 4,436,317 2,063,755
There were no noncash investing, capital and financing activities during fiscal year ended June 30, 2019.
See accompanying notes to financial statements
34
This page intentionally left blank.
35
FIDUCIARY FUND
FINANCIAL STATEMENTS
Agency funds are used to account for assets held by the City as an agent for individuals, private
organizations, other governments, and/or other funds.
Successor Agency to the Poway Redevelopment Agency Private Purpose Trust Fund is used to account
for monies received from the San Diego County Auditor Controller for the repayment of the enforceable
obligations of the former Poway Redevelopment Agency. These funds are restricted for the sole purpose
of payment of items on an approved Recognized Payment Obligation Schedule (ROPS).
36
CITY OF POWAY
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2019
Successor Agency
to the Poway
Agency Redevelopment
Funds Agency
ASSETS
Current assets
Cash and investments (note 2) $ 2,685,113 7,832,355
Receivables:
Interest 4,993
Prepaid charges 228,170
Total current assets
Noncurrent assets
Capital assets:
Nondepreciable (note 4)
2,685,113 8,065,518
2,864,759
Total noncurrent assets 2,864,759
Total assets
$ 2,685,113
LIABILITIES
Current liabilities
Accounts payable $ 46,820
Long-term debt - due within one year (note 5)
Total current liabilities
Noncurrent liabilities
Developer deposits
Advances from City of Poway (note 3)
Interest payable
Long-term debt - due in more than one year (note 5)
10,930,277
9,028,510
46,820 9,028,510
2,638,293
3,054,877
271,920
136,617,815
Total noncurrent liabilities 2,638,293 139,944,612
Total liabilities $ 2,685,113 148,973,122
DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding of debt 1,104,260
NET POSITION (DEFICIT)
Held in trust for retirement of obligations
of the former Poway Redevelopment Agency
See accompanying notes to financial statements
$ (139,147,105)
37
CITY OF POWAY
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2019
Successor Agency
to the Poway
Redevelopment
Agency
ADDITIONS
Redevelopment Property Tax Trust Fund $ 50,589,594
Investment earnings 440,135
Other revenue 3,607,418
Total additions 54,637,147
DEDUCTIONS
Enforceable obligations payments 36,294,774
Administration expenses 849,859
Interest expense and fiscal charges 4,714,773
Total deductions
Change in net position
Net position (deficit), beginning of year
Net position (deficit), end of year
41,859,406
12,777,741
(151,924,846)
$ (139,147,105)
See accompanying notes to financial statements
38
This page intentionally left blank.
39
NOTES TO THE BASIC
FINANCIAL STATEMENTS
CITY OF POWAY
Notes to the Basic Financial Statements
June 30, 2019
Note 1— Summary of Significant Accounting Policies
The basic financial statements of the City of Poway, California, (the "City") have been prepared in
conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP")
as applied to governmental agencies. The Governmental Accounting Standards Board ("GASB") is the
accepted standard setting body for establishing governmental accounting and financial reporting
principles. The more significant of the City's accounting policies are described below:
A. Financial Reporting Entity
The City was incorporated December 1, 1980, under the general laws of the State of California. The
City operates under a Council -Manager form of government and provides the following services:
public safety (police — through the County of San Diego, and fire), community services, engineering
services, planning services, public works, general administrative services, and capital improvements.
As required by U.S. GAAP, these basic financial statements present the City and its component units,
entities for which the City is considered to be financially accountable. The City is considered to be
financially accountable for an organization if the City appoints a voting majority of that
organization's governing body and either the City is able to impose its will on that organization or
there is a potential for that organization to provide specific financial benefits to or impose specific
financial burdens on the City. The City is also considered to be financially accountable for an
organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes,
set rates or charges, or issue bonded debt without approval from the City). In certain cases, other
organizations are included as component units if the nature and significance of their relationship
with the City are such that their exclusion would cause the City's financial statements to be
misleading or incomplete.
Although the following are legally separate from the City, they have been "blended" as though they
are part of the City because the component unit's governing body is substantially the same as the
City's and there is a financial benefit or burden relationship between the City and the component
unit; management of the City has operational responsibilities for the component units; and/or the
component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or
almost exclusively, benefits the City, even though it does not provide services directly to it.
Component units for which the City is considered financially accountable are described below:
Poway Public Financing Authority
The Poway Public Financing Authority (the "Authority"), a blended component unit of the City, is a
joint powers authority organized pursuant to the State of California Government Code, Section
6500. The Authority exists under a Joint Exercise of Power Agreement dated October 8, 1991,
between the City and the former Poway Redevelopment Agency (the "Agency"). Its purpose is to
assist in financing and refinancing projects for the benefit of the City and the Agency. The Authority
was included within the scope of the reporting entity of the City because its governing body is
composed in its entirety of council members of the City. Separate financial statements can be
obtained from the Finance Department located at Poway City Hall.
41
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
Housing Authority
On March 1, 2011, the City Council of the City of Poway declared a need for a housing authority in
the City of Poway and adopted a resolution forming the Poway Housing Authority (the "Housing
Authority"), a blended component unit of the City. The creation of the Housing Authority provides
the City legal authority to continue monitoring ongoing rent and income compliance at affordable
housing developments.
The former Poway Redevelopment Agency (the "Agency") and the Housing Authority prepared a
Cooperation Agreement to provide for implementation of certain low and moderate income housing
projects and to make payments by the Agency to the Housing Authority for the costs to the Housing
Authority for performing its obligations. The Agency was dissolved due to the passage of Assembly
Bill x1 26 which became effective on October 1, 2011. In accordance with Health and Safety code
34175(b), on February 1, 2012, all housing assets, liabilities and fund balance of the Agency were
transferred to the Housing Authority as the Successor Agency to the Poway Redevelopment Agency.
The Housing Authority was included within the scope of the reporting entity of the City because its
governing body is composed in its entirety of council members of the City. Separate financial
statements can be obtained from the Finance Department located at Poway City Hall.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for by providing a separate set of self -
balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or
expenses, as appropriate. Governmental resources are allocated to and accounted for in individual
funds based upon the purpose for which they are to be spent and means by which spending
activities are controlled.
Government —Wide and Fund Financial Statements
The City's Government -Wide Financial Statements include a Statement of Net Position and a
Statement of Activities and Changes in Net Position. These statements present summaries of
governmental and business -type activities for the City accompanied by a total column.
These basic financial statements are presented on an "economic resources" measurement focus and
the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital
assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying
Statement of Net Position. The Statement of Activities presents changes in net position. Under the
accrual basis of accounting, revenues are recognized in the period in which they are earned while
expenses are recognized in the period in which the liability is incurred.
42
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
Certain types of transactions are reported as program revenues for the City in three categories:
• Charges for services
• Operating contributions and grants
• Capital contributions and grants
Certain eliminations have been made in regard to interfund activities, payables and receivables. All
internal balances in the Statement of Net Position have been eliminated except those representing
balances between the governmental activities and the business -type activities, which are presented
as internal balances and eliminated in the total primary government column. In the Statement of
Activities, internal service fund transactions have been eliminated; however, those transactions
between governmental and business -type activities have not been eliminated. The following
interfund activities have been eliminated:
• Due to and from other funds
• Advances to and from other funds
• Transfers in and out
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund
balances as presented in these statements to the net position presented in the government -wide
financial statements. The City has presented all major funds that met those qualifications.
All governmental funds are accounted for on a spending or "current financial resources"
measurement focus and the modified accrual basis of accounting. Accordingly, only current assets
and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures
and Changes in Fund Balances present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in fund balances. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60
days after year-end) are recognized when due. The primary revenue sources, which have been
treated as susceptible to accrual by the City, are real and personal property tax, other local taxes,
franchise fees, forfeitures and penalties, motor license fees, rents and concessions, interest
revenue, and state and federal grants and subventions. Expenditures are recorded in the accounting
period in which the related fund liability is incurred except for interest on long-term debt, claims
and judgments, and compensated absences, which are recorded only when due.
Unearned revenues arise when the government receives resources before it has a legal claim to
them, as when grant monies are received prior to incurring qualifying expenditures.
43
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
In subsequent periods when both revenue recognition criteria are met or when the government has
a legal claim to the resources, the unearned revenue is removed from the balance sheet and
revenue is recognized.
The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements
is provided to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds:
The General Fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund.
The Housing Authority Fund receives lease payments from properties owned by the Authority
as well as residual payments from its non-profit partners that own and operate affordable
housing projects that received funding from the former Redevelopment Agency. The fund is
not required to be reported as a major fund every year but is reported as such due to the
significance of its operations.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of
Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for all proprietary
funds.
A separate column representing the internal service fund is also presented in these statements.
However, internal service balances and activities have been combined with the governmental
activities in the government -wide financial statements.
Proprietary funds are accounted for using the "economic resources" measurement focus and the
accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent)
are included on the Statement of Net Position. The Statement of Revenues, Expenses and Change
in Fund Net Position presents increases (revenues) and decreases (expenses) in total net position.
Under the accrual basis of accounting, revenues are recognized in the period in which they are
earned while expenses are recognized in the period in which the liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the
primary operations of the fund. All other revenues are reported as non -operating revenues.
Operating expenses are those expenses that are essential to the primary operations of the fund. All
other expenses are reported as non -operating expenses.
The City reports the following major proprietary funds:
The Water Enterprise Fund is used to account for the provision of water services to the
residents of the City. All activities necessary to provide such services are accounted for in this
fund, including, but not limited to administration, operations, maintenance, financing and
related debt service, and billing and collection.
44
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
The Sewer Enterprise Fund is used to account for the provision of sewer services to the
residents of the City. All activities necessary to provide such services are accounted for in this
fund, including, but not limited to administration, operations, maintenance, financing and
related debt service, and billing and collection.
The City reports one internal service fund that is used to account for vehicle maintenance services
provided to the City's fleet of vehicles for which the user divisions are charged.
Fiduciary Fund Financial Statements
The Agency Funds are custodial in nature (assets equal liabilities) and use the accrual basis of
accounting, but do not involve measurement of results of operations. The City reports agency funds
used to account for the collection of assessments from owners of property with their respective
Districts, and for the remittance of such assessments to the bondholders as required by the Mello -
Roos Community Facilities Act of 1982.
The Private Purpose Trust Fund is used to account for non -housing activities of the City of Poway
Successor Agency on behalf of the former Poway Redevelopment Agency.
In addition to the Fund types described earlier, the City reports the following fund types:
The Special Revenue Funds are used to account for and report the proceeds of specific revenue
sources that are restricted to expenditure for special purposes other than debt service or capital
projects.
The Capital Projects Funds are used to account for and report financial resources that are restricted
or assigned to expenditures for capital outlays including the acquisition or construction of capital
facilities and other capital assets.
The Debt Service Fund is used to account for the principal and interest payments on current and
long-term debt.
The Internal Service Fund is used to account for the financing of special activities that provide
services within the City. The primary activity of the City's Internal Service Fund is vehicle and
equipment maintenance.
C. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and highly
liquid investments held with financial institutions, a fiscal agent, and in a pooled account with the
State, to be cash equivalents.
The cash flow statements require presentation of "cash and cash equivalents." For the purposes of
the statement of cash flows, the City considers all proprietary fund pooled cash and investments as
"cash and cash equivalents," as such funds are available to the various funds as needed. With
45
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
respect to cash and investments with fiscal agents, the City considers all investments with an
original maturity of less than three months to be cash equivalents.
The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LAIF) which has invested a portion of the pooled funds in structured notes and
asset -backed securities. LAIF's investments are subject to credit risk with the full faith and credit of
the State of California collateralizing these investments. In addition, these structured notes and
asset -backed securities are subject to market risk and to change in interest rates.
The City adheres to certain disclosure requirements, if applicable for deposit and investment risk
that are specified for the following areas:
• Interest Rate Risk
• Credit Risk
o Overall
o Custodial Credit Risk
o Concentration of Credit Risk
• Foreign Currency Risk
The City pools cash and investments of all funds, except assets held by fiscal agents. Each fund's
share in this pool is displayed in the accompanying financial statements as cash and investments.
Investment income earned by the pooled investments is allocated to the various funds on each
fund's average cash and investment balance.
Investments are reported in the accompanying financial statements at fair value. Changes in fair
value that occur during a fiscal year are recognized as investment earnings reported for that fiscal
year. Investment income includes interest earnings, changes in fair value, and any gains or losses
realized upon the liquidation, maturity, or sale of an investment.
The City categorizes its fair value measurement within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the relative inputs used to
measure the fair value of the investments. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are described as follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that the Authority has the ability to access.
Level 2: Inputs to the valuation methodology include:
• Quoted prices for similar assets or liabilities in active markets;
• Quoted prices for identical or similar assets or liabilities in inactive markets;
• Inputs other than quoted prices that are observable for the asset or liability;
• Inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
46
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
Level 3: Inputs to the valuation methodology include are unobservable and significant to the
fair value measurement. Unobservable inputs reflect the City's own assumptions
about the inputs market participants would use in pricing the asset or liability
(including assumptions about risk). Unobservable inputs are developed based on the
best information available in the circumstances and may include the City's own data.
D. Inter fund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as "due to/from other funds" (i.e., current portion of
interfund loans). Any residual balances outstanding between the governmental activities and
business -type activities are reported in the governmental -wide financial statements as "interfund
balances."
E. Inventories
Inventories within the various fund types consist of water, materials and supplies which are valued
at cost on a first -in, first -out basis. Reported expenditures reflecting the purchase of supplies have
been restated to reflect the consumption method of recognizing inventory -related expenditures.
F. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads,
streets, sidewalks, medians and storm drains), are reported in the applicable governmental or
business -type activities in the Government -Wide Financial Statements. City policy has set the
capitalization threshold for reporting capital assets at $5,000. Capital assets are valued at historical
cost or estimated historical cost if actual historical cost was not available. Donated assets are valued
at acquisition value at the requisition date.
Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Buildings 10-50 years
Buildings improvements 10-100 years
Furniture and Equipment 5-20 years
Infrastructure 20-50 years
The City defines infrastructure as the basic physical assets that allow the City to function. These
assets include streets, bridges, sidewalks, drainage systems, and lighting systems, etc. Each major
infrastructure system can be divided into subsystems. For example, the street system can be
subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land.
These subsystems are not delineated in the basic financial statements. The appropriate operating
department maintains information regarding the subsystems.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest on construction -related debt incurred during the period of construction for business -type
47
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
and proprietary fund assets is capitalized as a cost of the constructed assets. Capital assets acquired
under capital lease are capitalized at the net present value of the total lease payments.
Capital Assets Acquired Under Lease Purchase Contracts
The long-term principal portion of debt on non-proprietary capital assets acquired through lease
purchase contracts is accounted for in the government -wide financial statements as "capital lease
obligations." A capital asset is recorded at the net present value of total lease payments in the
government -wide financial statements.
G. Deferred Inflows and Deferred Outflows of Resources
Deferred outflows of resources are transactions that result in the consumption of net position in
one period that are applicable to future periods and are not considered assets. Deferred outflows of
resources are required to be presented separately after assets on the statement of net position. The
City has two items that qualify for reporting in this category, deferred loss on refunding of debt and
outflows related to pensions.
Deferred inflows of resources are transactions that result in the acquisition of net position in one
period that are applicable to future periods and are not considered to be liabilities. Deferred inflows
of resources are required to be presented separately after liabilities on the statement of net
position. The City has two items that qualifies for reporting in this category, deferred inflows related
to pensions and unavailable revenues.
H. Compensated Absences
Government -Wide Financial Statements
For governmental and business -type activities, compensated absences are recorded as incurred and
the related expenses and liabilities are reported.
Fund Financial Statements
In governmental funds, compensated absences are recorded as expenditures in the years paid, as it
is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources,
rather than currently available financial resources. In proprietary funds, compensated absences are
expensed to the various funds in the period they are earned, and such fund's share of the unpaid
liability is recorded as a long-term liability of the fund. Vested or accumulated compensated
absences are recorded in proprietary funds as an expense and liability of those funds as the benefits
accrue to employees.
48
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
1. Long -Term Debt
Government -Wide Financial Statements
Long-term debt and other long-term obligations are reported as liabilities in the appropriate
activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the
straight-line method. Bonds payable are reported net of applicable premium or discount.
Fund Financial Statements
The governmental fund financial statements do not present long-term debt but are shown in the
Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net
Position.
J. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the plans and additions to/deductions from the plan fiduciary net position have been
determined on the same basis as they are reported by the plans.
For this purpose, benefit payments (including refund of employee contributions) are recognized
when due and payable in accordance with benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Valuation Date
Measurement Date
Measurement Period
Valuation Date
Measurement Date
Measurement Period
CaIPERS Plans
June 30, 2017
June 30, 2018
July 1, 2017 to June 30, 2018
PARS Plan
June 30, 2018
June 30, 2019
July 1, 2018 to June 30, 2019
Gains and losses related to changes in total pension liability and fiduciary net position are
recognized in pension expense systematically over time. The first amortized amounts are recognized
in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as
deferred outflows and deferred inflows of resources related to pensions and are to be recognized in
future pension expense. The amortization period differs depending on the source of the gain or loss.
49
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
The difference between projected and actual earning sis amortized straight-line over 5 years. All
other amounts are amortized straight-line over the average expected remaining service lives of all
members with benefits (active, inactive, and retired) as of the beginning of the measurement
period.
K. Property Taxes
Property taxes are levied on March 1 and are payable in two installments: November 1 and February
1 of each year. Property taxes become delinquent on December 10 and April 10, for the first and
second installments, respectively. The lien date is January 1. The County of San Diego, California (the
"County") bills and collects property taxes and remits them to the City according to a payment
schedule established by the County.
The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase)
and can increase the property tax rate no more than 2% per year. The City receives a share of this
basic tax levy proportionate to what it received during the years 1980-1981.
Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided
the taxes are received within 60 days after the end of the fiscal year. Property taxes received after
this date are not considered available as a resource that can be used to finance the current year
operations of the City and, therefore, are not recorded as revenue until collected.
No allowance for doubtful accounts was considered necessary.
L. Net Position
In the Government -Wide Financial Statements and proprietary fund financial statements, net
position is classified as follows:
Net Investment in Capital Assets — This component of net position consists of capital assets, net
of accumulated depreciation, reduced by the outstanding balances of debt that are attributable
to the acquisition, construction, or improvement of those assets.
Restricted — This component of net position consists of restricted assets and deferred outflows
of resources reduced by liabilities and deferred inflows of resources related to those assets.
Unrestricted — This component of net position is the amount of the assets, deferred outflows of
resources, liabilities, and deferred inflows of resources that are not included in the
determination of net investment in capital assets or the restricted component of net position.
When expenses are incurred for purposes for which both restricted and unrestricted net position
are available, the City's policy is to apply restricted net position first, then unrestricted net position
as it is needed.
50
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 1— Summary of Significant Accounting Policies (Continued)
M. Fund Balances
In the Governmental Fund Financial Statements, fund balances are classified in the following
categories:
Nonspendable — Items that cannot be spent because they are not in spendable form, such as
prepaid items and inventories, items that are legally or contractually required to be maintained
intact, such as principal of an endowment or revolving loan funds.
Restricted — Restricted fund balances encompass the portion of net fund resources subject to
externally enforceable legal restrictions. This includes externally imposed restrictions by
creditors, such as through debt covenants, grantors, contributions, laws or regulations of other
governments, as well as restrictions imposed by law through constitutional provisions or
enabling legislation.
Committed — Committed fund balances encompass the portion of net fund resources, the use of
which is constrained by limitations that the government imposes upon itself at its highest level
of decision making, normally the governing body through council resolutions, etc., and that
remain binding unless removed in the same manner. The City Council is considered the highest
authority for the City.
Assigned — Assigned fund balances encompass the portion of net fund resources reflecting the
government's intended use of resources. Assignment of resources can be done by the highest
level of decision making or by a committee or official designated for that purpose. The City
Council has authorized the City Manager for that purpose.
Unassigned — This classification includes all residual fund balances for the General Fund that has
not been restricted, committed or assigned to specific purposes within the General Fund. The
General Fund is the only fund that reports a positive unassigned fund balance amount. The
unassigned classification also includes negative residual fund balance of any other governmental
fund that cannot be eliminated by offsetting of assigned fund balance amounts.
It is the City's policy to consider restricted fund balance spent first when an expenditure is incurred
for purposes for which both restricted and unrestricted fund balance are 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.
N. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amounts of certain assets
and liabilities and the disclosure of contingent assets and liabilities at the date of the basic financial
statements and the related reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. Management believes that the estimates
are reasonable.
51
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 2 — Cash, Cash Equivalents and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized
investments of all funds. This pooled cash is invested by the City Treasurer to enhance earnings. The
pooled interest earned is allocated to the funds based on average month -end cash balances of the
various funds.
The following is a summary of cash and investments at June 30, 2019:
Cash and investments
Cash and investments with
fiscal agents
Total
Government -Wide
Statement of Net Position
Fiduciary
Funds
Governmental Business -Type Statement of
Activities Activities Net Position
$ 83,621,726 30,961,201
Total
10, 517, 468 125,100, 395
624,154 - - 624,154
$ 84, 245, 880 30, 961, 201
10, 517, 468 125, 724, 549
Cash, cash equivalents, and investments consisted of the following at June 30, 2019:
Cash on hand $ 8,500
Demand deposits 789,614
Investments 124,926,435
Total $ 125,724,549
A. Cash Deposits
The carrying amounts of the City's demand deposits were $789,614 at June 30, 2019. Bank balances
at June 30, 2019, were $1,912,762 which were fully insured or collateralized with securities held by
the pledging financial institutions in the City's name as discussed below:
The California Government Code requires California banks and savings and loan associations to
secure the City's cash deposits by pledging securities as collateral. This Code states that collateral
pledged in this manner shall have the effect of perfecting a security interest in such collateral
superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in
the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage
notes having a value of 150% of the City's total cash deposits. The City may waive collateral
requirements for cash deposits, which are fully insured by the Federal Deposit Insurance
Corporation. The City, however, has not waived the collateralization requirements.
52
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 2 — Cash, Cash Equivalents and Investments (continued)
The City follows the practice of pooling cash and investments of all funds, except for funds required
to be held by fiscal agents under the provisions of bond indentures. Interest income earned on
pooled cash and investments is allocated on an accounting period basis to the various funds based
on the period -end cash and investment balances. Interest income from cash and investments with
fiscal agents is credited directly to the related fund.
B. Investments
City Cash & Investment Pool
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also identifies
certain provisions of the California Government Code (or the City's investment policy, where more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustee that are governed by
the provisions of debt agreements of the City, rather than the general provisions of the California
Government Code or the City's investment policy.
Authorized Investment Type
Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio* in One Issuer*
U.S. Treasury Obligation 5years None None
U.S. Agency Securities 5 years 75% 25%
Bankers Acceptances 180 days 40% 5%
Medium -Term and Corporate Notes 5years 30% 5%
Money Market Mutual Funds N/A 20% 10%
Mortgage Backed Securities 5years 20% None
Asset Backed Securities 5 years 20% None
Commercial Paper 270 days 25% 5%
Municipal Bonds 5years 30% 5%
Negotiable Certificates of Deposits 5 years 30% 5%
Local Agency Investment Fund (LAIF) N/A None None
County of San Diego Investment Pool N/A None None
CalTrust Joint Powers Authority N/A None None
Obligation of any State 5 years None None
* Excluding amounts held by trustee that are not subject to California Government Code restriction.
Investment Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt
agreement, rather than the general provisions of the California Government Code or the City's
53
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 2 — Cash, Cash Equivalents and Investments (Continued)
investment policy. The table below identifies certain provisions of these debt agreements that
address interest rate risk, credit risk, and concentration of credit risk.
Authorized Investment Type
Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio in One Issuer
Repurchase agreement 1 year None 30%
Money Market Mutual Funds N/A None None
U.S. Agency Securities 5 years 75% 25%
Investment Contracts 30 years None None
Local Agency Investment Fund (LAIF) N/A None None
C. Risk Disclosures
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 is to changes in the market interest rates. One of the ways that the City manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
Information about the sensitivity of the fair values of the City's investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City's investments by maturity:
Remaining Maturities
12 Months
Investment Type Amounts or Less
13 to 24
Months
25 to 60 More than
Months 60 Months
U.S. Treasury Bills
U.S. Agencies
CalTrust Investment Pool - Short term
CalTrust Investment Pool - Medium term
Medium -Term and Corporate Notes
Local Agency Investment Fund (LAIF)
San Diego County Investment Pool
Certificates of Deposit
Held by bond trustee:
Money Market Funds
Total
$ 11,035,860
40,004,279
11,136,533
11,293,865
21,426,732
29,311,301
43,711
50,000
5,497,245
22,356,899
11,136,533
15,401,616
29,311,301
43,711
50,000
624,154 624,154
1,990,782 3,547,833
11,061,083 6,586,297
11,293,865
3,999,420 2,025,696
$ 124,926,435 84,421,459 28,345,150 12,159,826
54
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 2 — Cash, Cash Equivalents and Investments (Continued)
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.
The following presentation is the minimum rating required by (where applicable) the California
Government Code, the City's investment policy, or debt agreements, and the actual rating as of June
30, 2019 for each investment type:
Investment Type
Minimum
Rating S&P Moody's
Fair Value
U.S. Treasury Bills
U.S. Agencies
CalTrust Investment Pool -Short term
CalTrust Investment Pool -Medium term
Medium -Term and Corporate Notes
Local Agency Investment Fund (LAIF)
San Diego County Investment Pool
Certificates of Deposit
Held by bond trustee:
Money Market Funds
Total
Concentration of Credit Risk
exempt exempt exempt
Aaa AA Aaa
AAf AAf not rated
N/A not rated not rated
A-/A3 AA Aaa
N/A not rated not rated
AAAf AAAf not rated
N/A exempt exempt
AAA AAAm Aaamf
$ 11, 035, 860
40, 004, 279
11,136, 533
11, 293, 865
21, 426, 732
29, 311, 301
43,711
50,000
624,154
$ 124,926,435
The City's Policy states that not more than 25% of the portfolio shall be invested in any one entity or
any one instrument to protect the City from concentration of credit risk, with the following
exceptions: U.S. Treasury Obligations and investments pools (State of California — Local Agency
Investment Fund and CaITRUST Investment Pool). In addition, purchases of commercial paper must
not exceed 25% of the value of the portfolio at any time and single issuer holdings must not exceed
5% per issuer. The City is in compliance with these provisions of the Policy. Investments in any one
issuer that represent 5% or more of the total City's investments are as follows:
Issuer Investment Type
Fannie Mae
Federal Farm Credit
Federal Home Loan
U.S. Agencies
U.S. Agencies
U.S. Agencies
D. Investment in Local Agency Investment Funds
Reported Amount % of Investments
10,453,426
10, 024, 986
13, 539, 955
8%
8%
11%
The City's investments with Local Agency Investment Funds ("LAIF") at June 30, 2019, included a
portion of the pooled funds invested in Medium -Term and Short -Term Structured Notes and Asset -
Backed Securities. These investments included the following:
55
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 2 — Cash, Cash Equivalents and Investments (Continued)
Structured Notes are debt securities (other than asset -backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more
indices and/or that have embedded forwards or options.
Asset -Backed Securities, the bulk of which are mortgage -backed securities, entitle their
purchasers to receive a share of the cash flows from a pool of assets such as principal and
interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or
credit card receivables.
The Local Investment Advisory Board provides oversight for LAIF. The Board consists of five
members as designated by statute. The State Treasurer, as Chairman, or his designated
representative appoints two members qualified by training and experience in the field of investment
or finance, and two members who are treasurers, finance or fiscal officers or business managers
employed by any county, city or local district or municipal corporation of this state.
As of June 30, 2019, the City had $29,311,301 invested in LAIF, which had invested 1.77% of the
pooled investment funds in short-term and medium -term Structured Notes and Asset -Backed
Securities. The fair value of the City's position in the pool is the same as the value of the pool shares.
E. Investment in CaITRUST
The City is a voluntary participant in the Investment Trust of California (CaITRUST) a Joint Powers
Authority. CalTRUST is a program established by public agencies in California for the purpose of
pooling and investing local agency funds. CalTRUST invests in fixed income securities eligible for
investment pursuant to California Government Code Sections 53601, et. seq. and 53635, et. seq.
Investments in CalTRUST are highly liquid, as deposits can be converted to cash within 24 hours
without loss of interest. The balance available for withdrawal is based on the accounting records
maintained by CalTRUST, which are recorded on a fair market value basis. Separate CaITRUST
financial statements are available from CaITRUST's offices at 400 Capitol Mall, Suite 702,
Sacramento, CA 95814.
As of June 30, 2019, the City had $22,430,398 invested in CaITRUST.
The City's investment in this pool is reported in the accompanying financial statements at fair value.
F. Investment in San Diego County Investment Pool
The City is a voluntary participant in the County Treasury Pool ("County Pool") which is regulated
under the oversight of the Treasurer of the County of San Diego. The fair value of the City's
investment in the County Pool is reported in the accompanying financial statements based upon the
City's pro-rata share of the fair value provided by the County Pool for the entire portfolio. The
balance available for withdrawal is based on the accounting records maintained by the Pool.
Included in the County Pool's investment portfolio are collateralized and negotiable certificates of
deposit, floating rate securities issued by federal agencies and corporations, money market funds,
repurchase agreements and commercial paper.
56
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 2 — Cash, Cash Equivalents and Investments (Continued)
At June 30, 2019, the City had $43,711 invested in the San Diego County Investment Pool. The City's
investment in this pool is reported in the accompanying financial statements at fair market value.
G. Fair Value Measurements
The following table presents the balances of the assets measured at fair value on a recurring basis as
ofJune 30, 2019.
Fair Value Measurement Using
Investments by Not Subject to
Fair Value Level Total Level 1 Level 2 Level 3 GASB 72
U.S. Treasury Bills $ 11,035,860
U.S. Agencies 40,004,279
CalTrust Investment Pools 22,430,398
Medium -Term and Corporate Notes 21,426,732
Local Agency Investment Fund (LAIF) 29,311,301
San Diego County Investment Pool 43,711
Certificates of Deposit 50,000
Held by Bond Trustees 624,154
Total investments by fair value level
11,035,860
50,000
$ 124,926,435 11,085,860
Note 3 — Interfund Transactions
A. Due To and Due From Other Funds
As ofJune 30, 2019, balances were as follows:
Due to other funds
40,004,279
21,426,732
22,430,398
29,311,301
43,711
624,154
61,431,011 - 52,409,564
Due from other funds
General Water Sewer Internal Service
Fund Fund Fund Fund
Total
Governmental Activities:
General Fund $ - - 312,433 312,433
Non -major Governmental Funds 182,241 31,346 19,660 78,900 312,147
Total due to other funds $ 182,241
31,346 19,660
391,333 624,580
These balances resulted from loans to cover negative cash balances and capital replacement costs as
ofJune 30, 2019.
57
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
B. Advances To and Advances From Fiduciary Funds
The advances to fiduciary funds were primarily used for the following:
Advances from
governmental funds
Successor Agency to the
Advances to fiduciary funds Poway RDA
Governmental Activities:
Housing Authority
Non -major Governmental Funds
Business -Type Activities
Water Fund
Sewer Fund
Total
610,976
748,643
1,173,173
522,085
$ 3,054,877
The City Council authorized various advances to the former Poway Redevelopment Agency, which
now reside in the Successor Agency, totaling $3,054,877. As approved by the California Department
of Finance, these advances are being repaid through fiscal year 2032-33. The advance bears 3%
interest rate, payable over 18 years.
C. Transfers To and From Other Funds
Transfers for the year ended June 30, 2019:
Transfers Out
Transfers In
Water Sewer Internal Non -major
Enterprise Enterprise Service Governmental
General Fund Fund Fund Funds Total
General Fund
Non -major Governmental Funds
Water Enterprise Fund
Sewer Enterprise Fund
Internal Service Funds
Total
$ - 20,657 10,481 4,226 1,288,545 1,323,909
780,124 - 780,124
181,180 - - - 187,818 368,998
69,310 - - - 114,941 184,251
1,777,628 - - - 1,777,628
$ 2,808,242 20,657 10,481 4,226 1,591,304 4,434,910
Transfers are primarily used for the following:
• Move revenues from the fund that statute or budget requires to collect them to the fund that
statute or budget requires to expend them;
• Move receipt restricted to the debt service from the funds collecting the receipts, to the debt
service fund as debt service payments become due;
• Move available funds to capital project funds for approved projects;
• Move available funds to new funds, or closed funds, at the direction of the Council.
58
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 4 — Capital Assets
A. Governmental Activities
A summary of changes in capital assets for governmental activities for the year ended June 30, 2019:
Balance at Balance at
June 30, 2018 Additions Deletions June 30, 2019
Non -Depreciable Assets
Land $ 40, 396, 057 3,328,229 - 43, 724, 286
Construction in progress 4,616,362 3,202,638 (6,790,333) 1,028,667
Total non -depreciable assets 45,012,419 6,530,867 (6,790,333) 44,752,953
Depreciable Assets
Buildings 64,557,527 - 64,557,527
Improvements other than buildings 5,534,166 6,207,953 - 11,742,119
Infrastructure 146,527,689 - 146,527,689
Machinery and equipment 19,359,850 2,183,216 (663,556) 20,879,510
Total depreciable assets 235,979,232 8,391,169 (663,556) 243,706,845
Less accumulated depreciation
Buildings (37,880,246) (1,318,749)
Improvements other than buildings (2,142,311) (200,905)
Infrastructure (104,768,536) (3,161,091)
Machinery and equipment (14,682,774) (965,601)
589,068
(39,198, 995)
(2,343,216)
(107, 929, 627)
(15, 059, 307)
Total accumulated depreciation (159,473,867) (5,646,346) 589,068 (164,531,145)
Total depreciable assets, net 76,505,365 2,744,823 (74,488) 79,175,700
Total governmental activities $ 121,517,784 9,275,690 (6,864,821) 123,928,653
The $6,790,333 in deletions from construction in progress is shown as $6,207,953 in additions to
improvements other than buildings and $582,380 in additions to machinery and equipment.
Governmental activities depreciation expense for capital assets for the year ended June 30, 2019:
General government $ 844,708
Public safety 817,844
Public works 3,499,930
Community services 483,864
Total depreciation expense $ 5,646,346
59
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 4 — Capital Assets (Continued)
B. Business -type Activities
A summary of changes in capital assets for business -type activities for the year ended June 30, 2019:
Balance at Balance at
June 30, 2018 Additions Deletions June 30, 2019
Non -Depreciable Assets
Land $ 76,797 - - 76,797
Construction in progress 956,087 1,390,212 (1,579,152) 767,147
Total non -depreciable assets
1,032,884 1,390,212
(1,579,152) 843,944
Depreciable Assets
Buildings 21,128,309 - - 21,128,309
Improvements other than buildings 71,949,535 1,579,152 - 73,528,687
Machinery and equipment 3,893,829 313,725 - 4,207,554
Total depreciable assets 96,971,673 1,892,877 - 98,864,550
Less accumulated depreciation
Buildings (18,853,731) (466,621) - (19,320,352)
Improvements other than buildings (44,303,833) (1,957,002) - (46,260,835)
Machinery and equipment (2,728,929) (255,079) - (2,984,008)
Total accumulated depreciation (65,886,493) (2,678,702) - (68,565,195)
Total depreciable assets, net 31,085,180 (785,825) - 30,299,355
Total business -type activities $ 32,118,064 604,387 (1,579,152) 31,143,299
Business -type activities depreciation expense for capital assets for the year ended June 30, 2019:
Water Enterprise Fund
Sewer Enterprise Fund
Total depreciation expense
$ 1,591,882
1,086,820
$ 2,678,702
60
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 4 — Capital Assets (Continued)
C. Fiduciary Activities
A summary of changes in capital assets for fiduciary activities for the year ended June 30, 2019:
Non -Depreciable Assets
Land
Balance at Balance at
June 30, 2018 Additions Deletions June 30, 2019
$ 2,864,759 - 2,864,759
Total non -depreciable assets 2,864,759 -
Total fiduciary activities $ 2,864,759 -
Note 5 — Long -Term Debt
A summary of changes in long-term debt for the year ended June 30, 2019:
2,864,759
2,864,759
Classification
Amount Amount
Balance Balance Due Within Due In More
June 30, 2018 Additions Reductions June 30, 2019 One Year Than One Year
Governmental Activities
Certificates of Participation $ 13,195,977 (810,432) 12,385,545 829,512 11,556,033
Compensated Absences 1,585,705 1,959,230 (2,010,381) 1,534,554 1,534,554
Total governmental activities $ 14,781,682 1,959,230 (2,820,813) 13,920,099 2,364,066 11,556,033
Business -Type Activities
Compensated Absences $ 292,416 322,725 (319,851) 295,290 295,290
Total business -type activities $ 292,416 322,725 (319,851) 295,290 295,290
Fiduciary Funds
Tax Allocation Bonds $ 154,504,588
Notes Payable 3,338,564
(8,858,263) 145,646,325
(3,338,564) -
9,028,510 136,617,815
Total fiduciary activities $ 157,843,152
(12,196,827) 145,646,325
9,028,510 136, 617, 815
61
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 5 - Long -Term Debt (Continued)
A. Governmental Activities Long -Term Debt
Certificates of Participation at June 30, 2019, consisted of the following:
Classification
Amount Amount
Balance Balance Due Within Due in More
June 30, 2018 Additions Reductions June 30, 2019 One Year Than One Year
2005 Certificates of Participation $ 2,000,000 - (185,000) 1,815,000 195,000 1,620,000
Bond Premium 15,170 - (2,978) 12,192 2,703 9,489
2012 Certificates of Participation 11,025,000 (605,000) 10,420,000 615,000 9,805,000
Bond Premium 155,807 - (17,454) 138,353 16,809 121,544
Total Certificates of Participation $ 13,195,977
2005 Certificates of Participation
(810,432) 12,385,545 829,512 11,556,033
In April 2005, the City issued 2005 Refunding Certificates of Participation in the amount of
$8,245,000 to refund and defease the City's outstanding 1995 and 1996 Certificates of Participation.
The original 1995 Certificates of Participation were used for several projects such as the City's pool
and Performing Arts Center, while the 1996 Certificates of Participation were used to build the City's
Sheriff Substation. The 2005 Refunding Certificates of Participation consisted of $6,830,000 serial
certificates maturing from 2005 through 2020 in annual installments of $305,000 to $610,000 and
term certificates of $1,415,000 maturing in 2026. Interest is payable semi-annually on February 1
and August 1 at rates ranging from 3.00% to 4.50%. Certificates maturing on or after August 1, 2016
are subject to optional redemption in whole or in part, on any date beginning August 1, 2015.
Certificates maturing on August 1, 2026 are subject to mandatory redemptions on August 1 of each
year beginning August 1, 2021. At February 1, 2012, $2,335,000 was transferred to the Successor
Agency. At June 30, 2019, the City's portion of the outstanding balance of the 2005 Certificates of
Participation was $1,815,000.
The annual requirements to amortize the City portion of Certificates of Participation outstanding at
June 30, 2019:
Year Ending
June 30,
Principal
Interest Total
2020 $ 195,000 76,153 271,153
2021 205,000 67,903 272,903
2022 210,000 58,950 268,950
2023 220,000 49,275 269,275
2024 230,000 39,150 269,150
2025-2027 755,000 52,088 807,088
Total $ 1,815,000 343,519 2,158,519
62
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 5 — Long -Term Debt (Continued)
2012 Certificates of Participation
The City leased certain existing property to the Public Financing Authority (the "PFA") pursuant to a
Site and Facilities Lease dated as of January 1, 2003, as amended by an Amendment to Site and
Facilities Lease, dated as of October 1, 2012. On October 5, 2012, the City issued 2012 Refunding
Certificates of Participation to provide for the defeasance and refunding of 2003 Certificates of
Participation, to fund a reserve account for the Certificates, and to pay costs incurred in connection
with executing and delivering the Certificates. The Certificates are payable solely from and secured
by certain lease payments to be made by the City to the PFA. The interest with respect to the
Certificates is payable on January 1 and July 1 of each year, commencing January 1, 2013 at rates
ranging from 2.00% to 3.25%. At June 30, 2019, the outstanding balance of the 2012 Certificates of
Participation was $10,420,000.
The annual requirements to amortize Certificates of Participation outstanding at June 30, 2019:
Year Ending
June 30, Principal Interest Total
2020 $ 615,000 314,770 929,770
2021 630,000 300,933 930,933
2022 645,000 283,608 928,608
2023 665,000 264,258 929,258
2024 685,000 244,308 929,308
2025 - 2029 3,745,000 900,538 4,645,538
2030 - 2033 3,435,000 282,375 3,717,375
Total $ 10,420,000 2,590,790 13,010,790
B. Fiduciary Funds Long Term Debt
Tax Allocation Bonds
Tax Allocation Bonds at June 30, 2019, consisted of the following:
2015A Tax Allocation Bonds
Bond Premium
2015BTax Allocation Bonds
Total Tax Allocation Bonds
Balance
June 30, 2018
$ 133,110,000
16,304,588
5,090,000
$ 154,504,588
Classification
Amount Amount
Balance Due Within Due in More
Additions Reductions June 30, 2019 One Year Than One Year
(1,885,000)
(1,883,263)
(5,090,000)
131, 225,000 7,190,000 124,035,000
14, 421, 325 1,838,510 12, 582, 815
(8,858,263) 145,646,325 9,028,510 136,617,815
63
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 5 - Long -Term Debt (Continued)
2015A Tax Allocation Bonds
On July 1, 2015, the Successor Agency to the Poway Redevelopment Agency (Successor Agency)
issued 2015A Tax Allocation Bonds in the amount of $133,110,000 for the purpose of effecting a
refunding of the Poway Redevelopment Agency's outstanding Paguay Redevelopment Project Tax
Allocation Refunding Bonds, Series 2000, Series 2001 and Series 2003. The bonds are dated July 1,
2015 and mature on June 15, 2033 in the principal amount and bear interest from 4% to 5%.
Interest is payable semi-annually on June 15 and December 15 through 2033. The bonds maturing
on December 15, 2026, December 15, 2027, June 15, 2028, December 15, 2028 and on December
15, 2029 are subject to optional redemption prior to maturity at the option of the Successor
Agency.
The Successor Agency has pledged all revenues and all of the monies in the Redevelopment
Obligation Retirement Fund and all monies in the Debt Service Fund. No funds or properties, other
than those previously stated, shall be pledged for the payment of the principal or interest or
redemption premium on the bonds. As of June 30, 2019, the balance of the 2015A Tax Allocation
Bonds was $131,225,000.The annual requirements to amortize the bonds outstanding at June 30,
2019:
Year Ending
June 30, Principal Interest Total
2020 $ 7,190, 000 6,454,450 13, 644, 450
2021 7,545,000 6,108, 625 13, 653, 625
2022 7,935,000 5,726,500 13, 661, 500
2023 8,345,000 5,324,750 13, 669, 750
2024 8,770,000 4,902,250 13, 672, 250
2025-2029 48, 540, 000 17, 310, 750 65, 850, 750
2030-2033 42, 900, 000 4,964,875 47, 864, 875
Total $ 131,225,000 50,792,200 182,017,200
2015B Tax Allocation Bonds
On July 1, 2015, the Successor Agency to the Poway Redevelopment Agency (Successor Agency)
issued the 2015E Tax Allocation Bonds in the amount of $26,845,000 for the purpose of effecting a
refunding of the Poway Redevelopment Agency's outstanding Paguay Redevelopment Project Tax
Allocation Refunding Bonds, Series 2007. The bonds are dated July 1, 2015 and mature on June 15,
2019 in the principal amount of $26,845,000 and bears interest from 0.50% to 2.35%. Interest is
paid semi-annually on June 15 and December 15 through 2033.
The Successor Agency has pledged all revenues and all of the monies in the Redevelopment
Obligation Retirement Fund and all monies in the Debt Service Fund. No funds or properties, other
than those previously stated, shall be pledged for the payment of the principal or interest on the
bonds.
64
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 5 — Long -Term Debt (Continued)
As of June 30, 2019, the balance of the 2015B Tax Allocation Bonds was paid off.
Notes Payable
Notes payable at June 30, 2019, consisted of the following:
Classification
Amount Amount
Balance Balance Due Within Due in More
June 30, 2018 Additions Reductions June 30, 2019 One Year Than One Yea!
Mossy Nissan $ 3,338,564 (3,338,564) -
Total Notes Payable $ 3,338,564 (3,338,564) -
The former Poway Redevelopment Agency (the "Agency") entered into an Owner Participation
Agreement with AZ Poway LLC (dba Mossy Nissan) that went into effect upon issuance of the
certificate of completion for the Mossy Nissan automobile dealership on July 11, 2003. The Agency
purchased an operating covenant for $1,900,000 that accrues interest at the rate of 7% per annum.
Annual payment of the operating covenant is based on 50% of the net new sales in effect until (i)
the purchase price and accrued interested is paid in full, or (ii) the fifteenth annual payment is
made. The operating covenant is deemed paid in full after the fifteenth annual payment is made,
and all remaining balances, including accrued interest, are forgiven. The outstanding balance in the
amount of $2,598,406 was transferred to the Successor Agency on February 1, 2012 due to the
dissolution of the Agency. As of June 30, 2019, the fifteenth annual payment was made and as such,
the Owner Participation agreement was forgiven.
C. Compensated Absences
This liability represents the total unpaid vacation and compensatory time earned by employees of
the City. Since this amount is paid to the employee upon termination of employment, there is no
fixed payment schedule for earned but unpaid compensated absences. The compensated absences
are predominately associated with the General Fund, Water Fund and Sewer Fund. At June 30, 2019,
the outstanding balance of governmental activities and business -type activities compensated
absences were $1,534,554 and $295,290, respectively.
Note 6 — Pension Plan Summary
The City currently has two pension plans administered by California Public Employees' Retirement
System (CaIPERS) and one retirement enhancement plan administered by the Public Agency Retirement
Services (PARS). The pension plans consist of a miscellaneous agent plan and a cost -sharing safety plan
(see Note 7 for a full description of the plans). The retirement enhancement plan serves as a
supplemental defined benefit pension plan (see Note 8 for a full description of the plan). The summary
of the deferred outflows of resources, deferred inflows of resources, net pension liability and pension
expense:
65
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 6 — Pension Plan Summary (Continued)
Miscellaneous Safety PARS Total
Deferred Outflows of
Resources $ 4,337,163 4,083,348 1,102,567 9,523,078
Deferred Inflows of
Resources (506,491) (545,600) (111,794) (1,163,885)
Net Pension Liability (33,205,519) (15,638,347) (2,576,481) (51,420,347)
Pension Expense 6,032,830 3,179,378 683,955 9,896,163
The net pension liabilities for the City's pension plans are primarily liquidated by funding from the
General, Water, Sewer and Internal Service funds based on their proportionate personnel costs each
year.
Note 7 — Defined Benefit Pension Plans — CaIPERS
A. General Information about the Pension Plans
Plan Descriptions
The Plans consist of an agent multiple -employer defined benefit pension plan and a public agency
cost -sharing multiple -employer defined benefit pension plan administered by the CaIPERS.
Miscellaneous — Agent, Multiple -Employer Defined Benefit Pension Plan
A full description of the pension plan regarding number of employees covered, benefit provisions,
assumptions (for funding, but not accounting purposes), and membership information are listed in
the plan's June 30, 2017, Annual Actuarial Valuation Report (funding valuation). Details of the
benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and
CaIPERS audited financial statements are publicly available reports that can be obtained at CaIPERS
website, at www.calpers.ca.gov.
Safety — Cost Sharing, Multiple -Employer Defined Benefit Pension Plan
All qualified permanent and probationary employees are eligible to participate in the Public Agency
Cost -Sharing Multiple -Employer Defined Benefit Pension Plan (Plan) administered by the CaIPERS.
The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and
a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate
plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or
miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may
sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors one
safety plan in safety risk pools. Benefit provisions under the Plan are established by State statute
and the City resolution. CaIPERS issues publicly available reports that include a full description of the
pension plan regarding benefit provisions, assumptions and membership information that can be
found on the CaIPERS' website, at www.calpers.ca.gov.
66
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 7 — Defined Benefit Pension Plans — CaIPERS (Continued)
Benefits Provided
CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and
death benefits to plan members, who must be public employees and beneficiaries. Benefits are
based on years of credited service, equal to one year of full-time employment. Members with five
years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members
are eligible for non -duty disability benefits after 5 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.
The Plan operates under the provisions of the California Public Employees' Retirement Law (PERL),
the California Public Employees' Pension Reform Act of 2013 (PEPRA), and the regulations,
procedures and policies adopted by the CaIPERS Board of Administration. The Plan's authority to
establish and amend the benefit terms are set by the PERL and PEPRA and may be amended by the
California state legislature and in some cases require approval by the CaIPERS Board.
The Plans' provisions and benefits in effect at June 30, 2019:
Miscellaneous Plans
On or After
Prior to January 1, 2011 Prior On or After
Hire date January 1, 2011 to January 1, 2013 January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 - 63 & Up 50 - 63 & Up 52-67 & Up
Monthly benefits, as a % of eligible
compensations 1.426% to 2.418% 1.092% to 2.418% 1.0% or 2.5%
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible
compensations
Safety Plan
On or After
Prior to January 1, 2011 Prior On or After
January 1, 2011 to January 1, 2013 January 1, 2013
3.0% @ 50
5 years service
monthly for life
50 & Up
3.0% @ 55
5 years service
monthly for life
50-55 & Up
2.7% @ 57
5 years service
monthly for life
50-57 & Up
3.0% 2.4% to 3.0% 2.0% to 2.7%
67
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 7 — Defined Benefit Pension Plans — CaIPERS (Continued)
Employees Covered
At June 30, 2018 (measurement date), the following employees were covered by the benefit terms:
Miscellaneous Safety
Inactive employees or beneficiaries
currently receiving benefits 239 47
Inactive employees entitled to but
not yet receiving benefits 211 44
Active employees 176 53
Total
Contributions
626 144
Section 20814(c) of the California Public Employees' Retirement Law (PERL) 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. The total plan
contributions are determined through CaIPERS' annual actuarial valuation process.
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 employer is required to contribute the difference between the actuarially determined
rate and the contribution rate of employees. Employer contribution rates may change if plan
contracts are amended. Payments made by the employer to satisfy contribution requirements that
are identified by the pension plan terms as plan member contribution requirements are classified as
plan member contributions.
B. Net Pension Liability
The City's net pension liability for the Plan is measured as the total pension liability, less the pension
plan's fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2018,
using an annual actuarial valuation as of June 30, 2017 rolled forward to June 30, 2018, using
standard update procedures. A summary of principal assumptions and methods used to determine
the net pension liability:
68
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 7 — Defined Benefit Pension Plans — CaIPERS (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
Actuarial Cost Method
Asset Valuation Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increase
Investment Rate of Return (1)
Mortality Rate Table (2)
Post Retirement Benefit Increase
Entry Age Normal
Market Value of Assets
7.15%
2.50%
Varies by Entry age and Service
7.15%
Derived using CaIPERS' membership
data for all funds
Contract COLA up to 2.50% until
purchasing power protection
allowance floor on purchasing
power applies, 2.55% thereafter
(1) Net of pension plan investment and administrative expenses; includes inflation.
(2) The mortality table was used was developed based on CaIPERS' specific data.
The table includes 15 years of mortality improvements using Society of Actuaries Scale
90% of scale MP 2016. For more details on the table, please refer to the 2017
experience study report (based on CaIPERS demographics data from 1997 to 2015)
that can be found on the CaIPERS website.
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash
flows used to determine the discount rate assumed that contributions from plan members will be
made at the current member contribution rates and that contributions from employers will be
made at the statutorily required rates, actuarially determined. Based on those assumptions, the
Plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long term expected rate of return on plan on
investment was applied to all periods of projected benefit payments to determine the total pension
liability.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term
and long-term market return expectations as well as the expected pension fund cash flows. Using
historical returns of all the funds' asset classes, except compound (geometric) returns were
calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block
approach. Using the expected nominal returns for both short-term and long-term, the present value
of benefits was calculated for each fund.
69
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 7 — Defined Benefit Pension Plans — CaIPERS (Continued)
The expected rate of return was set by calculating the single equivalent expected return that
arrived at the same present value of benefits for cash flows as the one calculated using both short-
term and long-term returns. The expected rate of return was then set equal to the single
equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rate of return by asset class:
Asset Classl
Assumed
asset Real Return Real Return
allocation Years 1- 102 Year 11+3
Global Equity 50.0% 4.80% 5.98%
Global Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% (0.92%)
Total 100.0%
1 In the system's CAFR, Fixed Income is included Global Debt Securities; Liquidity is included in
Short-term Investment; Inflation Assets are included both Global Equity Securities and
Global Debt Securities.
2 An expected inflation of 2.00% used for this period
3 An expected inflation of 2.92% used for this period
Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately
issued CaIPERS financial reports.
70
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 7 — Defined Benefit Pension Plans — CaIPERS (Continued)
Miscellaneous Plan
The following table shows the Plan's change in net pension liability over the measurement period.
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2017 (VD) $ 110,101,216 77,440,054 32,661,162
Changes Recognized for the
Measurement Period:
Service Cost 1,801,815 - 1,801,815
Interest on the Total
Pension Liability 7,769,440 - 7,769,440
Changes of Benefit Terms
Changes of Assumptions (586,664) - (586,664)
Differences between
Expected and Actual
Experience 1,018,162 1,018,162
Net Plan to Plan Resource
Movement (189) 189
Contributions - Employer 2,452,303 (2,452,303)
Contributions -Employee 844,131 (844,131)
Net Investment Income 6,511,984 (6,511,984)
Benefit Payments,
including Refunds of
Employee Contributions (5,540,276) (5,540,276)
Administrative Expense (120,673) 120,673
Other miscellaneous
income/(expense) (229,160) 229,160
Net Changes during 2017-18 4,462,477 3,918,120 544,357
Balance at: 6/30/2018 (MD) $ 114,563,693 81,358,174 33,205,519
Valuation Date (VD), Measurement Date (MD).
Safety Plan
The City's net pension liability for each of the cost sharing, multiple -employer Plans is measured as
the proportionate share of the net pension liability. The net pension liability of each of the Plans is
measured as of June 30, 2018, and the total pension liability for each Plan used to calculate the net
pension liability was determined by an actuarial valuation as of June 30, 2017, rolled forward to
June 30, 2018, using standard update procedures.
71
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 7 — Defined Benefit Pension Plans — CaIPERS (Continued)
The City's proportion of the net pension liability was determined by CaIPERS using the output from
the Actuarial Valuation System and the fiduciary net position, as provided in the CaIPERS Public
Agency Cost -Sharing Allocation Methodology Report, which is a publicly available report that can be
obtained at CaIPERS' website under Forms and Publications, at www.calpers.ca.gov. The City's
proportionate share of the net pension liability for each Plan as of June 30, 2017, and 2018, was as
follows:
Proportionate Share of NPL - June 30, 2016
Proportionate Share of NPL-June 30, 2017
Change - Increase
Safety Plans
0.25775%
0.26652%
0.00877%
The following table shows the Plan's proportionate share of the net pension liability over the
measurement period.
Increase (Decrease)
Plan Total Pension Plan Fiduciary Plan Net Pension
Liability Net Position Liability
(a) (b) (c) _ (a) - (b)
Balance at: 6/30/2017 (VD) $ 57,427,165 42,025,848 15,401,317
Balance at: 6/30/2018 (MD) 59,842,721 44,204,374 15,638,347
Net changes during 2017-18 $ 2,415,556 2,178,526 237,030
Valuation Date (VD), Measurement Date (MD)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City's proportionate share of the net pension liability of each Plan as of
the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net
pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower
(6.15 percent) or 1 percentage -point higher (8.15 percent) than the current rate:
Discount Rate - 1% Current Discount Rate Discount Rate + 1%
(6.15%)
(7.15%) (8.15%)
Miscellaneous Plan Net
Pension Liability $ 47,953,285 33,205,519 20,955,746
Safety Plan Net Pension
Liability 23,888,049 15,638,347 8,879,193
72
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 7 — Defined Benefit Pension Plans — CaIPERS (Continued)
Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net
position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs.
The remaining amounts are categorized as deferred outflows and deferred inflows of resources
related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Difference between projected 5yearstraight-line amortization
and actual earnings
All other amounts
Straight-line amortization over the expected
average remaining service lifetime (EARSL) of
all members that are provided with benefits
(active, inactive and retired) as of the
beginning of the measurement period
For the year ended June 30, 2019, the City recognized pension expense of $6,032,830 and
$3,208,742 for the Miscellaneous and Safety Plans, respectively. At June 30, 2019, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Miscellaneous Safety
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between Expected and
Actual Experience $ 667,072 (122,125) 336,015 (1,275)
Changes of Assumptions 1,577,817 (384,366) 1,534,395 (207,017)
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments 192,393 105,879
Change in Employer's Proportion 442,874 (29,438)
Difference in Actual vs Projected Contributions 117,102 (307,870)
Pension Contributions Subsequent to
Measurement Date 1,899,881 1,547,083
$ 4,337,163
(506,491) 4,083,348 (545,600)
73
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 7 — Defined Benefit Pension Plans — CaIPERS (Continued)
$1,899,881 and $1,547,083 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in
the fiscal year ended June 30, 2020. Amounts reported as deferred outflows and deferred inflows of
resources related to pensions will be recognized in future pension expense as follows:
Measurement Deferred Outflows/(Inflows) of
Period Ended Resources
June 30, Miscellaneous Safety
2019 $ 2,596,571 1,567,953
2020 353,908 883,781
2021 (803,755) (352,751)
2022 (215, 933) (108, 318)
2023
Thereafter
Note 8 — Defined Benefit Pension Plan — Retirement Enhancement Plan
A. General Information about the Pension Plan
Plan Description
The Plan is a single -employer, agent, supplemental employee defined benefit pension plan (the plan
II) administered by the Public Agency Retirement Services (PARS) Phase II Systems. A full description
of the pension plan regarding number of employees covered, benefit provisions, assumptions (for
funding, but not account purposes), and membership information are listed in the July 1, 2018,
Annual Actuarial Valuation Report. Details of the benefits provided can be obtained from the
actuarial valuation reports. PARS issues a publicly available financial report that includes financial
statement and required supplementary information for the plan II. That report may be obtained by
writing to PARS, 3961 MacArthur Boulevard, Suite 200, Newport Beach, California, 92660.
Benefits provided
The Retirement Enhancement Plan provides a benefit equal to the PARS "2.7% at 55" plan factor
(formula is a static 2.7% at age 55 and older), less the CaIPERS "2.0% at 55" plan factor times final
compensation for all years of benefit service.
The Plan provides a pre -retirement death benefit for the eligible surviving spouse of any active
employee who dies after attaining the minimum age requirement and completing the required years
of service for the supplemental retirement benefit. The benefit will be equal to the participant's
retirement benefit, actuarially reduced as if the participant had retired and elected a 100% joint -
and -survivor annuity and paid as an annuity over the lifetime of the surviving spouse. There is no
death benefit payable if there is no surviving spouse.
74
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 8 — Defined Benefit Pension Plan — Retirement Enhancement Plan (Continued)
City Councilmembers who do not meet eligibility requirements at termination of employment but
will meet the eligibility requirements at a later date, will be eligible for a deferred retirement benefit
upon meeting all the requirements including retirement under CaIPERS.
The Plan is closed to all employees hired after January 9, 2012 ("soft -freeze").
The Plan's provisions and benefits in effect at June 30, 2019 (measurement date), are summarized
as follows:
Supplemental
Hire date On or before January 9, 2012
Benefit formula 2.7% @ 55 less CaIPERS 2.0% @ 55
Benefit vesting schedule from date of hire
Benefit payments life only annuity
Retirement age 55
Monthly benefits, as a % of eligible compensation 13.54%
Required employee contribution rates none
Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) 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. The total plan
contributions are determined through PARS' annual actuarial valuation process. 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.
Employer Contributions for the measurement period ended June 30, 2019, are $868,670.
B. Net Pension Liability
The City's net pension liability for the Retirement Enhancement Plan is measured as the total
pension liability, less the pension plan's fiduciary net position. The net pension liability of the Plan is
measured as of June 30, 2019, using an annual actuarial valuation as of June 30, 2018. A summary of
principal assumptions and methods used to determine the net pension liability is as follows.
75
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 8 — Defined Benefit Pension Plan — Retirement Enhancement Plan (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
Supplemental
Valuation Date June 30, 2018
Measurement Date June 30, 2019
Actuarial Cost Method Entry Age Normal
Asset Valuation Method None
Actuarial Assumptions:
Discount Rate 6.50%
Inflation 2.75%
Salary Increases 2.75%
Investment Rate of Return 6.50%
Cost of Living Adjustment 2.00%
Mortality Rate Table Pre -retirement:
CaIPERS Miscellaneous
Non -Industrial Rates.
Post -retirement:
CaIPERS Miscellaneous Non-
industrial rates
Employees Covered
At June 30, 2018 (actuarial valuation date), the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries
currently receiving benefits
Active employees
Supplemental
73
74
Total 147
Discount rate
GASB 67 and 68 generally require that a blended discount rate be used to measure the Total
Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal
Cost Method). The long-term expected return on plan investments may be used to discount
liabilities to the extent that the plan's Fiduciary Net Position (fair market value of assets) is projected
to cover benefit payments and administrative expenses. A 20-year high quality (AA/Aa or higher)
municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to
cover benefit payments and administrative expenses. Determining the discount rate under GASB 67
and 68 will often require that the actuary perform complex projections of future benefit payments
and asset values.
76
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 8 — Defined Benefit Pension Plan — Retirement Enhancement Plan (Continued)
GASB 67 and 68 (paragraph 29) do allow for alternative evaluations of projected solvency, if such
evaluation can reliably be made. GASB does not contemplate a specific method for making an
alternative evaluation of sufficiency; it is left to professional judgment.
The following circumstances justify an alternative evaluation of sufficiency for the City of Poway:
• The City of Poway has at least a 5-year history of paying at least 100% of the Actuarially
Determined Contribution (previously termed the Annual Required Contribution).
• The Actuarially Determined Contribution is based on a closed amortization period, which
means that payment of the Actuarially Determined Contribution each year will bring the
plan to a 100% funded position by the end of the amortization period.
• GASB 67 and 68 specify that the projections regarding future solvency assume that plan assets
earn the assumed rate of return and there are no future changes in the plan provisions or
actuarial methods and assumptions, which means that the projections would not reflect any
adverse future experience which might impact the plan's funded position.
Based on these circumstances, the City believes that the detailed depletion date projections
outlined in GASB 67 and 68 will show that the Fiduciary Net Position is always projected to be
sufficient to cover benefit payments and administrative expenses.
June 30, 2018 June 30, 2019
Discount rate 7.00% 6.50%
Long-term expected rate of return,
net of investment expense 7.00% 6.50%
Municipal bond rate N/A N/A
The plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the discount rate for calculating the
total pension liability is equal to the long-term expected rate of return.
Pension Plan Fiduciary Net Position
Information about the pension plan's assets, deferred outflows of resources, liabilities, deferred
inflows of resources, and fiduciary net position are presented in the City's GASB 68 Employer
Accounting Information report. The plan's fiduciary net position and additions to/deductions from
the plan's fiduciary net position have been determined on the same basis used by the pension plan,
which is the economic resources measurement focus and the accrual basis of accounting. Benefits
and refunds are recognized when due and payable in accordance with the terms of each plan.
Investments are reported at fair value.
77
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 8 — Defined Benefit Pension Plan — Retirement Enhancement Plan (Continued)
C. Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement
period.
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balances as of June 30, 2018 $ 17,760,919 $ 16,062,696 $ 1,698,223
Changes for the year:
Service Cost 227,611 - 227,611
Interest on the Total
Pension Liability 1,138,559 - 1,138,559
Effect of Plan Changes - -
Effect of Economic
Demographic Gains or
Losses 382,609 382,609
Effect of Assumptions
Changes or Inputs 973,111 973,111
Benefit Payments (959,590) (959,590)
Employer Contributions 866,896 (866,896)
Member Contributions - - Net Investment Income 1,002,486 (1,002,486)
Administrative Expenses - (25,750) 25,750
Net Changes during 2018-19 1,762,300 884,042 878,258
Balance as of June 30, 2019 $ 19,523,219 $ 16,946,738 $ 2,576,481
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City of Poway Retirement Enhancement Plan,
calculated using the discount rate of 6.50%, as well as what Plan's net pension liability would be if it
were calculated using a discount rate that is 1 percentage point lower (5.50%) or 1 percentage point
higher (7.50%) than the current rate.
Net Pension Liability
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.50%) Rate (6.50%) (7.50%)
$ 4,959,995 $ 2,576,481 $ 574,117
78
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 8 — Defined Benefit Pension Plan — Retirement Enhancement Plan (Continued)
Recognition of Gains and Losses
Investment gains/losses are recognized in pension expense over a period of five years;
economic/demographic gains/losses and assumption changes or inputs are recognized over the
average remaining service life for all active and inactive members.
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2019, the City incurred a pension expense of $683,955 for the Plan.
As of June 30, 2019, the City has deferred outflows and deferred inflows of resources related to
pensions:
Differences between Expected and
Actual Experience
Changes of Assumptions
Net Difference between Projected and
Actual Earnings on Pension Plan
Total
Deferred Outflows of Deferred Inflows of
Resources Resources
342,038
756,864
3,665
1,102,567
(111, 794)
(111, 794)
Amounts reported as deferred outflows and deferred inflows of resources related to pensions will
be recognized in future pension expense:
Deferred
Measurement Outflows/(Inflows) of
Period Ended Resources, Net
June 30, PARS
2020 $ 330,597
2021 186,867
2022 299,105
2023 174,204
2024
Thereafter
79
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 9 — City and Housing Authority Rehabilitation Loan Programs
Housing Rehabilitation Loan Program
There are two types of housing rehabilitation loans. Forgivable rehabilitation loans are forgiven at a rate
of 10% per year given all loan covenants are met. Non -forgivable loans are due upon the sale, transfer or
foreclosure of the property. Due to the contingent repayment schedule of these loans, an expenditure is
recorded when the loan is made, and no receivable is included in the accompanying basic financial
statements. The balance of the non -forgivable rehabilitation loans at June 30, 2019 is $102,128.
BEGIN Program Loans
This program is sponsored by a State of California grant to aid first-time buyers in the purchase of
affordable housing in the City of Poway. These loans have a thirty-year term with a one percent interest
rate. If the property is transferred or sold within five years, the loan must be repaid. After five years, if
the property is transferred or sold the loan must be assumed by the buyer for the remaining term. At
the end of the thirty years the loan must be repaid with principal and interest. Per the grant terms, loan
repayments must be re -loaned. Due to the contingent nature of the repayment schedule of these loans,
an expenditure is recorded when the loan is made, and no receivable is included in the accompanying
basic financial statements. The balance of the BEGIN loans, including accrued interest, at June 30, 2019
is $1,675,950.
Affordable Housing Loans
These loans are made to aid in the purchase of affordable housing in the City of Poway. They are for a
45-year term with no interest and if there is a sale, transfer or foreclosure before the end of the term
the loan must be assumed by an income qualified buyer and the 45-year term starts over. Due to the
contingent nature of the repayment schedule of these loans, an expenditure is recorded when the loan
is made, and no receivable is included in the accompanying basic financial statements. The balance of
these Affordable Housing loans at June 30, 2019 is $3,907,632.
Development Loans
The City, through the Housing Authority, has development loans primarily for affordable rental housing
projects and for one group home for the developmentally disabled. The affordable rental housing loans
have 55-year terms with three percent simple interest. Loan payments are made from residual receipts
and generally do not cover the annual accrued interest.
Therefore, due to the contingent nature of the repayment schedule of these loans, an expenditure is
recorded when the loan is made, and no receivable is included in the accompanying basic financial
statements. The balance of the development loans, including accrued interest, at June 30, 2019 is
$37,352,839.
80
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 10 — Risk Management
The City is a member of the California Joint Powers Insurance Authority ("Authority"). The Authority is
composed of 117 California public entities and is organized under a joint power's agreement pursuant to
California Government Code Section 6500 et. seq.
The purpose of the Authority is to arrange and administer programs for the pooling of self -insured
losses, to purchase excess insurance or reinsurance, and to arrange for group -purchased insurance for
property and other coverage. The Authority's pool began covering claims of its members in 1978. Each
member government has an elected official as its representative on the Board of Directors. The Board
operates through a 9-member Executive Committee. The audited Financial Statements can be obtained
from the City of Poway. No settlements have exceeded the City's insurance coverage for each of the
past three years.
Each member pays an annual contribution at the beginning of the coverage period. A retrospective
adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. The total
funding requirement for self-insurance programs is based on an actuarial analysis. Costs are allocated to
individual agencies based on payroll and claims history, relative to other members of the risk sharing
pool. Additional information regarding the cost allocation methodology is provided below.
A. General Liabilities
In the liability program claims are pooled separately between police and non -police exposures. (1)
The payroll of each member is evaluated relative to the payroll of other members. A variable
credibility factor is determined for each member, which establishes the weight applied to payroll
and the weight applied to losses within the formula. (2) The first layer of losses includes incurred
costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred
costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to
$750,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs
within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on
the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per
occurrence. Costs of covered claims for subsidence losses have a sub -limit of $40 million per
occurrence.
B. Workers' Compensation
In the workers' compensation program, claims are pooled separately between public safety (police
and fire) and non-public safety exposures. (1) The payroll of each member is evaluated relative to
the payroll of other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The
first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a
percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses
includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a
percentage of the pool's total incurred costs within the second layer. (4) Incurred costs in excess of
81
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 10 — Risk Management (Continued)
$100,000 to statutory limits are distributed based on the outcome of cost allocation within the first
and second loss layers.
For 2018-19 the Authority's pooled retention is $2 million per occurrence, with reissuance to
statutory limits under California Workers' Compensation Law.
Employer's liability losses are pooled among members to $2 million. Coverage from $2 million to $5
million is purchased as part of a reissuance policy, and Employer's Liability losses from $5 million to
$10 million are pooled among members.
C. Pollution Legal Liability Insurance
The City of Poway participates in the pollution legal liability insurance program (formerly called
environmental insurance) which is available through the Authority. The policy covers sudden and
gradual pollution of scheduled property, streets, and storm drains owned by the City of Poway.
Coverage is on a claims -made basis. There is a $50,000 deductible. The Authority has a limit of $50
million for the 3-year period from July 1, 2017 through July 1, 2020. Each member of the Authority
has a $10 million sub -limit during the 3-year term of the policy.
D. Property Insurance
The City of Poway participates in the all-risk property protection program of the Authority. This
insurance protection is underwritten by several insurance companies. City of Poway property is
currently insured according to a schedule of covered property submitted by the City of Poway to the
Authority.
City of Poway property currently has all-risk property insurance protection in the amount of
$176,654,752. There is a $10,000 deductible per occurrence except for non -emergency vehicle
insurance which has a $2,500 deductible. Premiums for the coverage are paid annually and are not
subject to retrospective adjustments.
E. Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible.
The fidelity coverage is provided through the Authority. Premiums are paid annually and are not
subject to retroactive adjustments. At June 30, 2019, no liability was recorded in the accompanying
basic financial statements.
Note 11— Joint Venture
The City is a member of the Regional Solid Waste Association Joint Powers Authority ("JPA"). The JPA
was formed on September 1, 1997 by the cities of Del Mar, Encinitas, National City, Poway, Solana Beach
and Vista to provide stable, long-term, cost effective options for all aspects of regional solid waste
disposal. Each member provides a proportionate percentage of revenue to cover all costs related to the
obligations and liabilities of the JPA when they become due and payable. In the event of dissolution of
82
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 11—Joint Venture (continued)
the JPA, any money or assets in possession of the Regional Solid Waste Association after the payment of
all liabilities, costs, expenses and charges shall be distributed to the member agencies in proportion to
their contributions determined as of the time of termination. The activities of the JPA are supervised by
a board consisting of one elected member of the legislative body of each of the member agencies.
The City of Escondido joined the JPA as a special contract party for the purpose of working on Regional
Household Hazardous Waste issues. Summarized audited information of the JPA for the fiscal year
ended June 30, 2019, which is the latest information available:
Amounts in Thousands
Total Assets
Total Liabilities
Total Equity
Total Revenues
Total Expenses
Net Increase in Fund Equity
491
8
483
348
337
11
The City's share of the JPA's assets and liabilities are not available. Separate financial statements of the
JPA are available at the City of Poway.
Note 12 — Deficit Net Position
At June 30, 2019, the following funds had deficit net position:
Fund Type
Fund Deficit
Special Revenue Fund 800 MHz Communication System $ (32,285)
Fiduciary Fund Successor Agency to the Poway Redevelopment Agency (139,147,105)
The 800 MHz Special Revenue fund had a deficit balance of $(32,285) due to the timing of collections of
the voter -approved special tax.
Successor Agency to the Poway Redevelopment Agency - The Successor Agency to the Poway
Redevelopment Agency Private Purpose Trust fund had an accumulated deficit of $(139,147,105), which
resulted from the issuance of tax allocation bonds that were intended to be repaid by the former Poway
Redevelopment Agency's future property tax increment revenue. Now that the Redevelopment Agency
has been dissolved, the Successor Agency expects to receive sufficient Redevelopment Property Tax
Trust Fund distributions through the remaining life of the bonds to fully fund their repayment.
83
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 13 — Contingent Liabilities and Commitments
A. Litigation
The City is a defendant in certain legal actions arising in the normal course of operations. The
accompanying basic financial statements reflect a liability for the probable amounts of loss
associated with these claims.
B. Construction
Various construction projects were in progress at June 30, 2019 with an estimated cost to complete
of approximately $16,283,983 in all fund types.
C. Significant Encumbrances
Encumbrances represent purchase orders, contracts or other commitments for the expenditure of
monies. However, because these commitments will be honored in subsequent years, they do not
constitute an expenditure or liability for financial statement purposes. At fiscal year-end, the City
had the following significant encumbrances.
Purpose
Special Internal
General Revenue Enterprise Service
Fund Funds Funds Funds
Total
Water Projects $ - - 1,341,283 - 1,341,283
Sewer Projects - 676,173 - 676,173
Drainage Projects 12,989 4,000 - 16,989
Street Projects 1,931,670 223,729 - 2,155,399
Computer Equipment and Software - 189,405 189,405
Vehicles - 179,070 179,070
Facilities 350,255 - 6,644 356,899
Professional Services 318,833 6,545 - 325,378
Total Outstanding Encumbrances $ 2,613,747 234,274 2,017,456 375,119 5,240,596
D. Other Matters
As of June 30, 2019, in the opinion of City management, there were no additional outstanding
matters that would have a significant effect on the financial position of the funds of the City.
84
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 14 — Fund Balances Classification
The City's fund balances at June 30, 2019:
Major Funds
Total
Housing Non -Major
General Authority Governmental
Fund Fund Funds
Total
Nonspendable:
Prepaid items $ 51,342 - - 51,342
Inventories 127,080 - - 127,080
Land held for resale 5,367,000 - - 5,367,000
Notes receivable 10,005,226 - - 10,005,226
Total nonspendable 15,550,648 - - 15,550,648
Restricted:
Debt service payments - - 556,697 556,697
Drainage - - 3,357,386 3,357,386
Fire protection - - 159,084 159,084
Grants - - 231,048 231,048
Housing - 2,199,704 159,155 2,358,859
Maintenance districts - - 8,453,934 8,453,934
Other purposes - - 2,085,051 2,085,051
Parks and recreation - - 876,723 876,723
Streets - - 3,007,857 3,007,857
Transportation - - 1,504,280 1,504,280
Total restricted - 2,199,704 20,391,215 22,590,919
Committed:
Economic volatility 6,986,990 - - 6,986,990
Extreme events 13,974,863 - - 13,974,863
Total committed 20,961,853 - - 20,961,853
Assigned:
Capital projects 17,152,463
Contractual services 223,463
Library 258,499
Parks and recreation 316,480
Public education & govt programming 617,940
Public safety 113,565
Repair and maintenance 3,854,408
Total assigned
17,152,463
223,463
258,499
316,480
617,940
113,565
3,854,408
22,536,818 - - 22,536,818
Unassigned 7,308,113 - (32,285) 7,275,828
Total unassigned 7,308,113 - (32,285) 7,275,828
Total fund balances
$ 66,357,432 2,199,704
20, 358, 930 88, 916, 066
85
CITY OF POWAY
Notes to the Basic Financial Statements
(Continued)
Note 15 — Expenditures in Excess of Appropriations
Excess of expenditures over appropriations in individual funds at the function level (level of budgetary
control) is as follows at June 30, 2019:
Final
Governmental Funds - Non -Major Fund Budget Expenditures Excess
Special Revenue Funds:
800 MHz Communication System $ 154,340 154,877 537
86
This page intentionally left blank.
87
REQUIRED
SUPPLEMENTARY INFORMATION
CITY OF POWAY
Required Supplementary Information
June 30, 2019
Note 1— Budgetary Information
The City prepares its budgets on the basis of estimated expenditures and, accordingly, the budget
amounts included in the accompanying financial statements are presented on a basis consistent
with generally accepted accounting principles.
The City Manager presents a proposed budget to the City Council appointed Budget Review
Committee (BRC) in May. The BRC holds public budget meetings during May and early June. The
final budget is adopted by the City Council during late June.
No budget expenditures can be disbursed without proper appropriations. Once the budget is
adopted, no additional fund appropriations can be authorized without the Council's approval. The
level of budget control (the level on which expenditures may not legally exceed appropriations) is
the individual fund level. The City Manager can authorize budget transfers between departments
without additional appropriations.
The City holds a mid -year budget review meeting. During the meeting, all the budget expenditures
are reviewed and projections for the whole year are made. Therefore, any necessary changes are
submitted for approval by the City Council with a resolution.
Annual appropriated budgets are adopted for the general, special revenue (except for the
Performing Arts Center Trust), the permanent funds, and one debt service fund. Budgets are
adopted on a basis consistent with generally accepted accounting principles. Budgeted amounts
are as originally adopted and as further amended by the City Council. Capital improvement projects
budgets are adopted upon project approval and remaining project balances are carried forward to
subsequent fiscal years until the project's completion.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders
and contracts) outstanding at year-end are reported as reservations of fund balances and do not
constitute expenditures or liabilities. The commitments will be reappropriated and honored in the
subsequent year.
The following are the budget comparison schedules for the General Fund and Housing Authority
Fund.
89
CITY OF POWAY
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 38,216,120 38,216,120 39,050,341 834,221
Licenses and permits 699,860 699,860 636,007 (63,853)
Intergovernmental 346,400 810,400 740,726 (69,674)
Charges for services 4,510,400 4,620,295 4,346,688 (273,607)
Fines and forfeitures 100,000 100,000 174,431 74,431
Use of money and property 892,140 663,050 1,652,609 989,559
Developer fees 3,007,000 3,024,124 3,031,986 7,862
Other revenues 193,610 193,610 212,951 19,341
Total revenues 47,965,530 48,327,459 49,845,739
EXPENDITURES
Current:
General government
Public safety
Public works
Development services
Community services
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
8,567,130
25,232,610
4,656,280
5,678,440
6,205,480
1,631,230
6,910,742
25,755,532
4,768,507
5,810,968
6,380,590
23,607,693
51,971,170 73,234,032
(4,005,640) (24,906,573)
988,110
(1,131,190)
3,118,209
(1,370,570)
(143,080) 1,747,639
$ (4,148,720) (23,158,934)
6,157,824
25,092,171
4,401,878
4,977,009
5,834,051
4,148,024
1,518,280
752,918
663,361
366,629
833,959
546,539
19,459,669
50,610,957 22,623,075
(765,218) 24,141,355
2,808,242
(1,323,909)
(309,967)
46,661
1,484,333 (263,306)
719,115 23,878,049
65,638,317
$ 66,357,432
90
CITY OF POWAY
Required Supplementary Information
Budgetary Comparison Schedule - Housing Authority Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Charges for services $ 61,640 61,640 48,259 (13,381)
Use of money and property 40,070 40,070 84,350 44,280
Other revenues 40,000 40,000 67,871 27,871
Total revenues
EXPENDITURES
Current:
General government
Development services
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
141,710 141,710
7,700 17,704
130,000 943,110
137,700 960,814
4,010 (819,104)
200,480 58,770
8,160 9,544
764,063 179,047
772,223 188,591
(571,743) 247,361
Net change in fund balance $ 4,010 (819,104) (571,743) 247,361
Fund balance, beginning of year 2,771,447
Fund balance, end of year $ 2,199,704
91
Measurement Period
CITY OF POWAY
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Last 10 Years*
Miscellaneous Plan
6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018
TOTAL PENSION LIABILITY
Service Cost $ 1,515,714 1,463,621 1,552,133 1,785,822 1,801,815
Interest 6,646,592 6,973,473 7,241,818 7,456,135 7,769,440
Difference Between Expected and Actual Experience - 179,245 (444,504) (471,057) 1,018,162
Changes of Assumptions - (1,692,043) 6,085,867 (586,664)
Benefit Payments, Including Refunds of Employee Contributions (3,875,819) (4,300,520) (4,757,620) (5,058,914) (5,540,276)
Net Change in Total Pension Liability 4,286,487 2,623,776 3,591,827 9,797,853 4,462,477
Total Pension Liability- Beginning 89,801,273 94,087,760 96,711,536 100,303,363 110,101,216
Total Pension Liability - Ending (a) $ 94,087,760 96,711,536 100,303,363 110,101,216 114,563,693
PLAN FIDUCIARY NET POSITION
Net Plan to Plan Resource Movement $ - - (189)
Contributions - Employer 1,590,147 1,651,614 1,961,662 2,311,817 2,452,303
Contributions - Employee 716,942 773,660 778,160 806,615 844,131
Net Investment Income 11,075,599 1,674,500 387,630 7,966,356 6,511,984
Benefit Payments, Including Refunds of Employee Contributions (3,875,819) (4,300,520) (4,757,620) (5,058,914) (5,540,276)
Administrative Expenses - (82,323) (44,608) (105,594) (120,673)
Other Miscellaneous Income/(Expense) - - (229,160)
Net Change in Fiduciary Net Position 9,506,869 (283,069) (1,674,776) 5,920,280 3,918,120
Plan Fiduciary Net Position - Beginning 63,970,749 73,477,618 73,194,551 71,519,775 77,440,054
Plan Fiduciary Net Position - Ending (b) $ 73,477,618 73,194,549 71,519,775 77,440,055 81,358,174
Plan Net Position Liability - Ending (a) - (b) $ 20,610,142 23,516,987 28,783,588 32,661,161 33,205,519
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 78.09% 75.68% 71.30% 70.34% 71.02%
Covered Payroll $ 10,373,075 10,272,463 10,938,986 11,566,248 11,662,050
Plan Net Pension Liability as a Percentage of Covered Payroll 198.69% 228.93% 263.13% 282.38% 284.73%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only five years are presented.
Notes to Schedule:
Changes in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30,
2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in Assumptions: GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment
expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was
net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement period is without reduction of pension plan
administration expense.
In 2016, there were no changes in assumptions.
In 2017, The accounting discount rate reduced from 7.65% to 7.15%.
In 2018, demographic assumptions and inflation were changed in accordance to the CalPERS Experience
Study and Review of Actuarial Assumptions December 2017.
92
CITY OF POWAY
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Years*
Miscellaneous Plan
Fiscal Year 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Actuarially determined contribution $ 1,651,614 1,961,662 2,311,817 2,452,302 1,899,881
Contributions in relation to the actuarially
determined contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
(1,651,614) (1,961,662) (2,311,817) (2,452,302) (1,899,881)
10,272,463 10,938,986 11,566,248 11,662,050 12,831,311
16.08% 17.93% 19.99% 21.03% 14.81%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only five years are presented.
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019 were derived
from the June 30, 2016, Funding Valuation Report.
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2016, Funding Valuation Report.
Asset Valuation Method Actuarial Value of Assets. For details, see June 30, 2016, Funding Valuation
Report.
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Payroll Growth 3.00%
Investment Rate of Return 7.375% Net of Pension Plan Investment and Administrative Expenses; includes
Inflation.
Retirement Age The probabilities of Retirement are based on the 2014 CalPERS Experience
Study for the period from 1997 to 2007.
Mortality The probabilities of mortality are based on the 2014 CalPERS Experience Study
for the period from 1997 to 2007. Pre -retirement and Post -retirement
mortality rates include 5 years of projected mortality improvement using Scale
BB published by the Society of Actuaries.
93
CITY OF POWAY
Required Supplementary Information
Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and
Related Ratios as of the Measurement Date
Last 10 Years*
Measurement
Date
6/30/2014
6/30/2015
6/30/2016
6/30/2017
6/30/2018
Employer's
Proportion of
the Collective
Net Pension
Liability'
0.14119%
0.25032%
0.25757%
0.25775%
0.26652%
Safety Plan
Employer's
Proportion
Share of the
Collective Net
Pension Liability
$ 8,785,355
10,314,344
13, 340,151
15,401,317
15,638,347
Employer's
Covered Payroll
4,733,734
4,875,746
4,765,209
4,813,604
4,948,089
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a Percentage
of the Employer's
Covered
Payroll
185.59%
211.54%
279.95%
319.95%
316.05%
Pension's Plans
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability
81.42%
79.03%
74.44%
74.14%
73.39%
1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes
both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only five
years are presented.
Changes in Benefit Terms: The figures above do not include any liability impact that may have resulted from
plan changes which occurred after June 30, 2017 valuation date. This applies for voluntary benefit changes as
well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in Assumptions: GASB 68, paragraph 68 states that the long-term expected rate of return should be
determined net of pension plan investment expense but without reduction for pension plan administrative
expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative
expenses. The discount rate of 7.65% used for the June 30, 2015 measurement period is without reduction of
pension plan administration expense.
In 2016, there were no changes in assumptions.
In 2017, The accounting discount rate reduced from 7.65% to 7.15%.
In 2018, demographic assumptions and inflation were changed in accordance to the CaIPERS Experience
Study and Review of Actuarial Assumptions December 2017.
94
CITY OF POWAY
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Years*
Safety Plan
Fiscal Year Ended 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Actuarially determined contribution
$ 1,159,123 1,322,635 1,340,317 1,517,719 1,547,083
Contributions in relation to the actuarially
determined contributions (1,159,123) (1,172,369) (1,340,317) (1,517,719) (1,547,083)
Contribution deficiency (excess) 150,266 - - -
Covered payroll 4,875,746 4,765,209 4,813,604 4,948,089 5,696,517
Contributions as a percentage of covered payroll 23.77% 27.76% 27.84% 30.67% 27.16%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only five years are presented.
Notes to Schedule:
Change in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However,
individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional
Service Credit to member retiring during a specified time period (a.k.a. Golden Handshakes).
Change in Assumptions: In 2015, the discount rate was changed from 7.5 percent (net of administrative expense) to 7.65 percent to
correct for an adjustment to exclude administrative expense. In 2017, the discount rate was changed from 7.65 percent to 7.15
percent. In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and
Review of Actuarial Assumptions December 2017.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019 were derived from
the June 30, 2016, Funding Valuation Report.
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2016, Funding Valuation Report.
Asset Valuation Method Market Value of Assets. For details, see June 30, 2016 Funding Valuation
Report.
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Payroll Growth 3.00%
Investment Rate of Return 7.375% Net of Pension Plan Investment and Administrative Expenses;
Retirement Age The probabilities of Retirement are based on the 2014 CaIPERS Experience
Study for the period from 1997 to 2007.
Mortality The probabilities of mortality are based on the 2014 CaIPERS Experience
Study for the period from 1997 to 2007. Pre -retirement and Post -
retirement mortality rates include 5 years of projected mortality
improvement using Scale BB published by the Society of Actuaries.
95
CITY OF POWAY
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Last 10 Years*
Retirement Enhancement Plan
Measurement Date 2014-15
2015-16 2016-17
2017-18 2018-19
TOTAL PENSION LIABILITY
Service Cost $ 252,845 253,408 235,041 228,468 227,611
Interest 1,071,102 1,117,733 1,148,044 1,191,080 1,138,559
Effect of plan changes - - - -
Effect of economic/demographic gains or losses 32,923 (231,575) 52,208 382,609
Effect of assumptions changes or inputs - - - 973,111
Benefit payments (628,101) (689,668) (753,594) (876,349) (959,590)
Net Change in Total Pension Liability 695,846 714,396 397,916 595,407 1,762,300
Total Pension Liability - Beginning 15,357,354 16,053,200 16,767,596 17,165,512 17,760,919
Total Pension Liability - Ending (a) 16,053,200 16,767,596 17,165,512 17,760,919 19,523,219
PLAN FIDUCIARY NET POSITION
Contributions -Employer $ 1,302,085 1,379,421 3,846,093 1,560,917 866,896
Net Investment Income 205,418 (43,672) 1,332,806 1,062,788 1,002,486
Benefit Payments, Including Refunds of Employee Contributions (628,101) (689,668) (753,594) (876,349) (959,590)
Administrative Expenses (18,030) (18,906) (24,614) (25,431) (25,750)
Net Change in Fiduciary Net Position 861,372 627,175 4,400,691 1,721,925 884,042
Plan Fiduciary Net Position - Beginning 8,451,533 9,312,905 9,940,080 14,340,771 16,062,696
Plan Fiduciary Net Position - Ending (b) 9,312,905 9,940,080 14,340,771 16,062,696 16,946,738
Plan Net Position Liability - Ending (a) - (b) 6,740,295 6,827,516 2,824,741 1,698,223 2,576,481
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 58.01% 59.28% 83.54% 90.44% 86.80%
Covered Payroll $ 8,347,917 7,653,837 7,041,971 6,666,563 5,276,686
Plan Net Pension Liability as a Percentage of Covered Payroll 80.74% 89.20% 40.11% 25.47% 48.83%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only five years are presented.
Notes to Schedule:
Changes in Benefit Terms: None
Changes in Assumptions: The retirement, disability, salary scale and pre -retirement mortality assumptions were updated to be consistent with those recommended for
CalPERS actuarial valuations of public agency pension plans. These new demographic assumptions are described in the January 2014 experience study of the California
Public Employees Retirement System. This study used data from 1997 to 2011. The post -retirement mortality was updated to the CalPERS 1997-2011 Healthy Retiree
Mortality Tables (sex -distinct) with an assumed base year of 2008 and full generational projections using Scale AA.
In 2019, the accounting discount rate reduced from 7.00% to 6.50%.
96
Contractually
Determined
Fiscal Year Contributions
CITY OF POWAY
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Years*
Retirement Enhancement Plan
Contribution in
Relation to the
Contractually
Determined
Contributions
Contribution
Deficiency
(Excess)
Employer's
Covered Payroll
Contributions as
a Percentage of
Covered
Payroll
6/30/2015
6/30/2016
6/30/2017
6/30/2018
6/30/2019
$ 1,298,155 (1,302,085)
1,335,335 (1,379,421)
1,320,199 (3,846,093)
1,427,809 (1,560,917)
813,314 (866,896)
(3,930)
(44,086)
(2,525,894)
(133,108)
(53,582)
7,807,232
7,653,837
7,041,971
6,666,563
5,276,686
16.68%
18.02%
54.62%
23.41%
16.43%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only five
years are presented.
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year
2018-19 were from the June 30, 2018 actuarial valuation.
Valuation Timing Actuarially determined contribution rates are calculated as of June 30,
2018, and are applied the following fiscal year.
Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Inflation
Salary Increases
Cost of Living Adjustments
Investment Rate of Return
Payroll Growth
Withdrawal/Disability
Retirement Age
Mortality
Maximum Benefits and Salary
Family Composition
Form of Payment
Entry Age Normal
Level dollar, closed periods,
The actuarial value of assets is the market value of assets as provided by
Public Agency Retirement Services.
2.50%
Varies by years of Service
2.00%
6.50%
2.75%
Consistent with Non -Industrial rates used to value Miscellaneous Agency
CaIPERS Pension Plans.
The retirement rates are consistent with those used to value the
Miscellaneous CaIPERS Pension Plans 2.7% at age 55. The rates used are
those for retirees with 20 years of service, with an increased retirement
rate of 20% at age 55.
Pre -Retirement: Consistent with the Non -Industrial rates used to value the
Miscellaneous CaIPERS Pension Plans.
Post -Retirement: Consistent with the Non -Industrial rates used to value the
Miscellaneous CaIPERS Pension Plans.
No benefit or salary maximum is applied.
85% of active members are asssumed to have an eligible beneficiary who is
potentially eligible to receive a preretirement death benefit. Wives are
assumed to be three years younger than their husbands.
Single Life Annuity
97
SUPPLEMENTARY
INFORMATION
This page intentionally left blank.
99
NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Fire Protection Fund — Used to account for revenues received from the Fire Protection Special Tax.
Voters approved this special tax in June 1997. It is used to pay for a portion of the costs of fire
protection within the City of Poway.
800 MHz Communication System Fund — Used to account for revenues received from the 800 MHz
Regional Communication System Special Tax. Voters approved this special tax in June 1998. It is used to
pay for the City's share of the County -wide radio backbone system, and a portion of the annual
maintenance expenses.
Gas Tax Fund — Used to account for revenues received and expenditures made for street maintenance.
Financing is provided by the City's share of State gasoline taxes made pursuant to the California State
Constitution and authorized by the State Legislature.
Drainage Fund — Used to account for operations of the flood control and drainage division. Financing is
provided by developer's drainage fees and flood zone fees from the County. Poway Municipal Code
Section 16.72 requires the segregation of the funding.
Miscellaneous Grants Fund — Used to account for grants from various agencies used for operations and
maintenance, and to account for specific in -lieu fees from developers. Financing for grants is provided
by the State, County and Federal Government. Such grants provide for payment of all current operating
costs and may be used only for specified purposes.
AB 939 Integrated Waste Management Fund — Used to account for revenue received from a fee
collected with solid waste disposal that was created as a result of AB 939. All revenues in this fund are to
be used to reduce the toxicity of solid waste in landfills and improve the management of waste
resources.
Community Development Block Grant Fund — Used to account for revenues received and expenditures
made for community development and housing assistance. Financing is provided under agreement with
the county whereby the City is a secondary recipient with funds made available from the U.S.
Department of Housing and Urban Development under the Housing and Community Development Acts
of 1974 and 1977.
Transportation Development Act Fund — Used to account for revenues received and expenditures made
for transportation development, transit and related studies. Funding is provided to the City as secondary
recipient under agreements with the county and with the San Diego Association of Governments.
100
NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS (Continued)
Proposition A Fund — Used to account for the San Diego County special Proposition A one-half (1/2) cent
transportation sales tax which became effective July 1, 1988. All revenues of this fund must be
expended for certain transportation related purposes.
SB 1186 Disabled Access Law Fund — Used to account for revenue received from a fee collected upon
issuance of a business registration that was created as a result of AB 1186. All revenues in this fund are
to be used to pay for certified access specialists in local building departments and to pay for educational
and training resources at the state and local level to promote compliance.
Excess SAFE Reserve Fund — Used to account for revenue received related to the dissolution of the San
Diego Service Authority for Freeway Emergencies (SAFE), and the expenditures for motorist aid services
and support.
Regional Arterial Traffic Mitigation Fund — Used to account for new fees required by the San Diego
Association of Governments.
Fire Protection Impact Fees Fund — Used to account for revenues received and expenditures made for
fire protection improvements. Financing is provided primarily from developer fees.
BEGIN Program Fund —The Building Equity and Growth in Neighborhoods program (BEGIN) is funded by
the California Department of Housing and Community Development to provide down payment
assistance to low- and moderate -income first-time home buyers of newly constructed homes.
Housing In -lieu Fund — Used to account for revenues received and expenditures made for affordable
housing. Funding is provided primarily from developer fees that are collected in -lieu of the developer
providing inclusionary affordable housing units. The funds are used by the City to support its first-time
home buyer program, Supporting Home Ownership in Poway (SHOP), which is available to low- and
moderate -income homebuyers.
Abandoned Vehicle Fees Fund — Used to account for fees collected from the sale and citation of
abandoned vehicles remitted from San Diego County.
Habitat In -lieu Fund — Used to account for revenues received and expenditures made for the mitigation
of environmental impacts to natural habitat. Funding is provided primarily from developer fees that are
collected in -lieu of the developer providing actual land. The funds are used by the City to purchase open
space as land as funding becomes available.
101
NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS (Continued)
Maintenance Districts Fund — Used to account for assessments from property owners based on the
proportionate share of the costs, as estimated by an engineer's report. Assessments are collected via tax
rolls. The fund is used for lighting, landscape and maintenance.
Road Repair— Used to account for revenues received and expenditures made for road maintenance and
rehabilitation. Financing is provided by the City's share of the Road Maintenance and Rehabilitation
account revenues pursuant the Road Repair and Accountability Act of 2017 (SB1).
DEBT SERVICE FUND
City of Poway Debt Service Fund — Used to account for lease payments received and transfers in from
other funds that are used to make debt service payments.
PERMANENT FUND
Mary Patricia Ross Trust Fund — Used to account for revenue and expenses provided by a private estate
to finance community park and recreation purposes. The principal must be maintained intact until 2006.
Interest income must also be used to finance such recreational purposes.
CAPITAL PROJECTS FUNDS
Park Improvement Fund — Used to account for the financing and construction of park facilities
throughout the City.
Street Improvement Fund — Use to account for financing of street improvements. Financing is provided
primarily from developer's traffic mitigation fees. City Ordinance No. 80 authorized the collection and
the segregation of the funding.
Municipal Improvement Fund — Used to account for the financing and construction of the Old Coach
water line. The remaining funds are to be used for the maintenance and operation costs of the water
line.
102
CITY OF POWAY
Combining Balance Sheet
Non -major Governmental Funds
June 30, 2019
Special Revenue Funds
800 MHz
Fire Communication Gas
Protection System Tax
Drainage
Miscellaneous
Grants
ASSETS
Cash and investments $ 45,034 1,383,333 2,666,319 309,629
Receivables:
Taxes 4,785 352 7,309
Accounts 1,476 30
Interest 1,229
Advances to other funds
Due from other governments 113,237
Advances to fiduciary funds 748,643
Restricted assets:
Cash and investments with
fiscal agents
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Advances from other funds
Unearned revenues
Total liabilities
4,785 46,615 1,384,809 3,422,271 422,896
78,900
577,895
34,267
2
6,350 7,793
24,013 -
62,536
34,522 45,831
78,900 612,164 64,885 116,160
Deferred inflows of resources:
Unavailable revenue - - 81,792
Total deferred inflows of resources - 81,792
FUND BALANCES (deficit)
Restricted
Unassigned
Total fund balances (deficit)
4,785 772,645 3,357,386 224,944
(32,285)
4,785 (32,285) 772,645 3,357,386 224,944
Total liabilities, deferred inflows of
resources and fund balances $ 4,785 46,615 1,384,809 3,422,271 422,896
103
(Continued)
Special Revenue Funds
AB 939
Integrated Community Transportation SB 1186 Excess
Waste Development Development Disabled SAFE
Management Block Grant Act Proposition A Access Law Reserve
770,532 366,656 770,633 18,082 153,015
49,820
22,016 18,272
820,352 22,016 384,928 770,633 18,082 153,015
30,211 2,795 1,333 223
19,221
30,211 22,016 1,333 223
790,141
790,141
383,595 770,633
383,595 770,633
17,859 153,015
17,859 153,015
820,352 22,016 384,928 770,633 18,082 153,015
104
City of Poway
Combining Balance Sheet
Non -major Governmental Funds
June 30, 2019
(Continued)
Special Revenue Funds
Regional Fire
Arterial Protection Abandoned
Traffic Impact BEGIN Housing Vehicle Habitat
Mitigation Fees Program In -lieu Fees In -lieu
ASSETS
Cash and investments $ 350,052 154,299 6,104 159,155 330,243 942,729
Receivables:
Taxes
Accounts
Interest
Advances to other funds
Due from other governments
Advances to fiduciary funds
Restricted assets:
Cash and investments with
fiscal agents
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Advances from other funds
Unearned revenues
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
350,052 154,299 6,104 159,155 330,243 942,729
FUND BALANCES (deficit)
Restricted 350,052 154,299 6,104 159,155 330,243 942,729
Unassigned
Total fund balances (deficit)
350,052 154,299 6,104 159,155 330,243 942,729
Total liabilities, deferred inflows of
resources and fund balances $ 350,052
154,299 6,104 159,155
330,243 942,729
105
Special Revenue Funds
Debt
Service Permanent
Fund Fund
Capital Projects Funds
Total
City of Poway Mary Non -major
Maintenance Road Debt Patricia Park Street Municipal Governmental
Districts Repair Service Ross Trust Improvement Improvement Improvement Funds
8,689,640 177,889 225,464 96,629 780,094 1,739,989 416,622 20,552,142
17,761
25,453
164,319
819
30,207
76,779
2,048
317,844
748,643
624,154 624,154
8,732,854 342,208 850,437 96,629 780,094 1,739,989 416,622 22,351,817
271,785 - 412,543 1,310,928
7,135 - 65,415
151,490 312,147
142,250 222,605
278,920 293,740 412,543 1,911,095
81,792
81,792
8,453,934 342,208 556,697 96,629 780,094 1,739,989 4,079 20,391,215
(32,285)
8,453,934 342,208 556,697 96,629 780,094 1,739,989 4,079 20,358,930
8,732,854 342,208 850,437 96,629 780,094 1,739,989 416,622 22,351,817
106
CITY OF POWAY
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For the year ended June 30, 2019
Special Revenue Funds
800 MHz
Fire Communication Gas
Protection System Tax Drainage
REVENUES
Taxes $ 636,888 135,843 985,957 1,388,117
Intergovernmental - - - Use of money and property - 2,609 23,314 106,950
Developer fees - - - 32,634
Assessments levied - - - -
Other revenues - - 65,026 1,365
Total revenues 636,888 138,452 1,074,297 1,529,066
EXPENDITURES
Current:
Public safety - 154,877 - -
Public works - - 1,235,735 854,010
Capital outlay - - - 250,429
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfer out
154,877 1,235,735 1,104, 439
636,888 (16,425) (161,438) 424,627
(636,091)
1,818
Total other financing sources(uses) (636,091) - - 1,818
Net change in fund balances 797 (16,425) (161,438) 426,445
Fund balances (deficit), beginning of year 3,988 (15,860) 934,083 2,930,941
Fund balances (deficit), end of year $ 4,785 (32,285) 772,645 3,357,386
107
(Continued)
Special Revenue Funds
AB 939
Integrated Community Transportation SB 1186 Excess
Miscellaneous Waste Development Development Disabled SAFE
Grants Management Block Grant Act Proposition A Access Law Reserve
1,474,700
1,633,489 38,003 111,009 18,272
5,465 21,509 10,864 10,461 416 4,460
217,742 - - 7,439
1,638,954 277,254 111,009 29,136 1,485,161 7,855 4,460
1,436 886,962
1,563,350 228,552 111,009 18,648 7,934
1,563,350 228,552 111,009 20,084 894,896
75,604 48,702 - 9,052 590,265 7,855 4,460
(139,416)
(139,416)
(63,812) 48,702 - 9,052 590,265 7,855 4,460
288,756 741,439 - 374,543 180,368 10,004 148,555
224,944 790,141 - 383,595 770,633 17,859 153,015
108
CITY OF POWAY
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For the year ended June 30, 2019
Special Revenue Funds
(Continued)
Regional Fire
Arterial Protection Abandoned
Traffic Impact BEGIN Housing Vehicle Habitat
Mitigation Fees Program In -lieu Fees In -lieu
REVENUES
Taxes $
Intergovernmental
Use of money and property 10,044 3,827 128 4,558 9,624 34,684
Developer fees 17,464 29,212 5,750
Assessments levied
Other revenues
Total revenues
EXPENDITURES
Current:
Public safety
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
27,508 33,039 128 10,308 9,624 34,684
638,233
Total expenditures 638,233
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES
Transfers in
Transfer out
27,508 33,039 128 10,308 9,624 (603,549)
Total other financing sources(uses)
Net change in fund balances 27,508 33,039 128 10,308 9,624 (603,549)
Fund balances (deficit), beginning of year 322,544 121,260 5,976 148,847 320,619 1,546,278
Fund balances (deficit), end of year $ 350,052 154,299 6,104 159,155 330,243 942,729
109
Special Revenue Funds
Debt Service Permanent
Fund Fund
Capital Projects Funds
Total
City of Poway Mary Non -major
Maintenance Road Debt Patricia Park Street Municipal Governmental
Districts Repair Service Ross Trust Improvement Improvement Improvement Funds
455,661
237,711
1,913,839
30,749
920,708 - - - - - 5,997,874
1,800,773
1,226 297,559 2,816 23,369 89,880 119 901,593
260,225 880,371 - 1,225,656
1,913,839
322,321
2,637,960 921,934 297,559 2,816 283,594 970,251 119 12,162,056
154,877
2,384,773 642,538 - - - - - 6,005,454
283,678 - - - - - - 3,101,833
790,000
416,310
790,000
416,310
2,668,451 642,538 1,206,310 - - - - 10,468,474
(30,491) 279,396 (908,751) 2,816 283,594 970,251 119 1,693,582
655,321 - 934,165 - - - - 1,591,304
(4,617) - - - - (780,124)
655,321 - 929,548 - - - - 811,180
624,830 279,396 20,797 2,816 283,594 970,251 119 2,504,762
7,829,104 62,812 535,900 93,813 496,500 769,738 3,960 17,854,168
8,453,934 342,208 556,697 96,629 780,094 1,739,989 4,079 20,358,930
110
This page intentionally left blank.
111
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Protection Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 633,000 633,000 636,888 3,888
Total revenues 633,000 633,000 636,888 3,888
OTHER FINANCING (USES)
Transfers out - (633,000) (636,091) (3,091)
Total other financing (uses) (633,000) (633,000) (636,091) (3,091)
Net change in fund balance - 797 797
Fund balance, beginning of year 3,988 3,988 3,988
Fund balance, end of year $ 3,988 3,988 4,785 797
112
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
800 MHz Communication System Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 136,000 136,000 135,843 (157)
Use of money and property 600 600 2,609 2,009
Total revenues 136,600 136,600 138,452 1,852
EXPENDITURES
Current:
Public safety - 154,340 154,877 (537)
Total expenditures - 154,340 154,877 (537)
Net change in fund balance 136,600 (17,740) (16,425) 1,315
Fund balance (deficit), beginning of year (15,860) (15,860) (15,860)
Fund balance (deficit), end of year $ 120,740 (33,600) (32,285) 1,315
113
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Gas Tax Special Revenue Fund
Year Ended June 30, 2019
REVENUES
Taxes
Use of money and property
Other revenues
Total revenues
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
$
1,231,390
7,560
57,130
1,231,390
7,560
57,130
1,296,080 1,296,080
985,957
23,314
65,026
(245,433)
15,754
7,896
1,074,297 (221,783)
EXPENDITURES
Current:
Public works 4,337,180 1,487,350 1,235,735 251,615
Total expenditures 4,337,180 1,487,350 1,235,735 251,615
Net change in fund balance (3,041,100) (191,270) (161,438) 29,832
Fund balance, beginning of year 934,083 934,083 934,083
Fund balance, end of year $ (2,107,017) 742,813 772,645 29,832
114
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Drainage Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 1,477,260 1,477,260 1,388,117 (89,143)
Use of money and property 45,020 67,120 106,950 39,830
Developer fees 124,230 124,230 32,634 (91,596)
Other revenues - 1,365 1,365
Total revenues 1,646,510 1,668,610 1,529,066
EXPENDITURES
Current:
Public works 1,090,340 999,324 854,010
Capital outlay 350,000 565,076 250,429
Total expenditures 1,440,340 1,564,400 1,104,439
OTHER FINANCING SOURCES
Transfers in 4,040 1,818
Total other financing sources 4,040 1,818
Net change in fund balance 206,170 108,250 426,445
Fund balance, beginning of year 2,930,941 2,930,941 2,930,941
Fund balance, end of year $ 3,137,111 3,039,191 3,357,386
(139,544)
145,314
314,647
459,961
(2,222)
(2,222)
318,195
318,195
115
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Miscellaneous Grants Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental $ 125,670 1,625,670 1,633,489 7,819
Use of money and property 1,930 1,930 5,465 3,535
Total revenues 127,600 1,627,600 1,638,954 11,354
EXPENDITURES
Capital outlay 25,670 1,586,919 1,563,350 23,569
Total expenditures 25,670 1,586,919 1,563,350 23,569
OTHER FINANCING USES
Transfers out (139,416) (139,416)
Total other financing uses (139,416) (139,416)
Net change in fund balance 101,930 (98,735) (63,812) 34,923
Fund balance, beginning of year 288,756 288,756 288,756
Fund balance, end of year $ 390,686 190,021 224,944 34,923
116
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
AB 939 Integrated Waste Management Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental $ 23,000 23,000 38,003 15,003
Use of money and property 6,800 6,800 21,509 14,709
Other revenue 199,240 199,240 217,742 18,502
Total revenues 229,040 229,040 277,254 48,214
EXPENDITURES
Capital outlay 200,000 249,843 228,552 21,291
Total expenditures 200,000 249,843 228,552 21,291
Net change in fund balance 29,040 (20,803) 48,702 69,505
Fund balance, beginning of year 741,439 741,439 741,439
Fund balance, end of year $ 770,479 720,636 790,141 69,505
117
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Community Development Block Grant Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental $ 150,900 150,900 111,009 (39,891)
Total revenues 150,900 150,900 111,009 (39,891)
EXPENDITURES
Capital outlay 150,900 245,046 111,009 134,037
Total expenditures 150,900 245,046 111,009 134,037
Net change in fund balance - (94,146) - 94,146
Fund balance, beginning of year - -
Fund balance, end of year $ - (94,146) - 94,146
118
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Transportation Development Act Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental $ 5,000 5,000
Use of money and property 3,520 3,520
Other revenue 5,000 5,000
Total revenues
EXPENDITURES
Current:
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
13,520 13,520
5,000 5,000
5,000 363,455
10,000 368,455
3,520 (354,935)
374,543
18,272
10,864
13,272
7,344
(5,000)
29,136 15,616
1,436 3,564
18,648 344,807
20,084 348,371
9,052 363,987
374,543 374,543
$ 378,063 19,608
383,595 363,987
119
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Proposition A Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 1,481,000 1,481,000 1,474,700 (6,300)
Use of money and property 500 500 10,461 9,961
Total revenues 1,481,500 1,481,500 1,485,161 3,661
EXPENDITURES
Current:
Public works 1,207,698 886,962 320,736
Capital outlay 369,400 435,277 7,934 427,343
Total expenditures 369,400 1,642,975 894,896 748,079
Net change in fund balance 1,112,100 (161,475) 590,265 751,740
Fund balance, beginning of year 180,368 180,368 180,368
Fund balance, end of year $ 1,292,468 18,893 770,633 751,740
120
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
SB 1186 Disabled Access Law Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 70 70 416 346
Other revenue 1,050 1,050 7,439 6,389
Total revenues 1,120 1,120 7,855 6,735
Net change in fund balance 1,120 1,120 7,855 6,735
Fund balance, beginning of year 10,004 10,004 10,004
Fund balance, end of year $ 11,124 11,124 17,859 6,735
121
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Excess SAFE Reserve Special Revenue Fund
Year Ended June 30, 2019
REVENUES
Use of money and property
Total revenues
EXPENDITURES
Capital outlay
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
$ 1,500 1,500 4,460 2,960
1,500 1,500 4,460 2,960
141,872 - 141,872
Total expenditures - 141,872 - 141,872
Net change in fund balance 1,500 (140,372) 4,460 144,832
Fund balance, beginning of year 148,555 148,555 148,555
Fund balance, end of year $ 150,055 8,183 153,015 144,832
122
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Regional Arterial Traffic Mitigation Special Revenue Fund
Year Ended June 30, 2019
REVENUES
Use of money and property
Developer fees
Total revenues
EXPENDITURES
Capital outlay
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
$ 2,500
223,470
2,500 10,044
223,470 17,464
225,970 225,970
7,544
(206,006)
27,508 (198,462)
200,000 200,007 - 200,007
200,000 200,007 - 200,007
25,970 25,963
322,544
27,508 1,545
322,544 322,544
$ 348,514 348,507
350,052 1,545
123
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Protection Impact Fees Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 900 900 3,827 2,927
Developer fees 13,930 13,930 29,212 15,282
Total revenues 14,830 14,830 33,039 18,209
Net change in fund balance 14,830 14,830 33,039 18,209
Fund balance, beginning of year 121,260 121,260 121,260
Fund balance, end of year $ 136,090 136,090 154,299 18,209
124
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
BEGIN Program Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 60 60 128 68
Total revenues 60 60 128 68
Net change in fund balance 60 60 128 68
Fund balance, beginning of year 5,976 5,976 5,976
Fund balance, end of year $ 6,036 6,036 6,104 68
125
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Housing In -Lieu Special Revenue Fund
Year Ended June 30, 2019
REVENUES
Use of money and property
Developer fees
Total revenues
EXPENDITURES
Capital outlay
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
$ 2,500
42,500
2,500
42,500
45,000 45,000
4,558 2,058
5,750 (36,750)
10,308 (34,692)
136,719 - 136,719
Total expenditures - 136,719 - 136,719
Net change in fund balance 45,000 (91,719) 10,308 102,027
Fund balance, beginning of year 148,847 148,847 148,847
Fund balance, end of year $ 193,847 57,128 159,155 102,027
126
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Abandoned Vehicle Fees Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 3,300 3,300 9,624 6,324
Total revenues 3,300 3,300 9,624 6,324
Net change in fund balance 3,300 3,300 9,624 6,324
Fund balance, beginning of year 320,619 320,619 320,619
Fund balance, end of year $ 323,919 323,919 330,243 6,324
127
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Habitat In -Lieu Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 15,500 15,500 34,684 19,184
Developer fees 17,000 17,000 (17,000)
Total revenues
EXPENDITURES
Capital outlay
32,500 32,500
703,605
34,684 2,184
638,233 65,372
Total expenditures - 703,605 638,233 65,372
Net change in fund balance 32,500 (671,105) (603,549) 67,556
Fund balance, beginning of year 1,546,278 1,546,278 1,546,278
Fund balance, end of year $ 1,578,778 875,173 942,729 67,556
128
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Maintenance Districts Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 440,810 440,810 455,661 14,851
Use of money and property 74,290 74,290 237,711 163,421
Assessment levied 1,871,820 1,871,820 1,913,839 42,019
Other revenue - 30,749 30,749
Total revenues
2,386,920 2,386,920
2,637,960 251,040
EXPENDITURES
Current:
Public works 2,670,730 2,942,623 2,384,773 557,850
Capital outlay - 2,033,019 283,678 1,749,341
Total expenditures 2,670,730 4,975,642 2,668,451 2,307,191
Excess (deficiency) of revenues
over (under) expenditures (283,810) (2,588,722) (30,491) 2,558,231
OTHER FINANCING SOURCES
Transfers in - 655,450 655,321 (129)
Total other financing sources - 655,450 655,321 (129)
Net change in fund balance (283,810) (1,933,272) 624,830 2,558,102
Fund balance, beginning of year 7,829,104 7,829,104 7,829,104
Fund balance, end of year $ 7,545,294 5,895,832 8,453,934 2,558,102
129
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Road Repair Special Revenue Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 834,500
Use of money and property 2,000
Total revenues
EXPENDITURES
Current:
Public works
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
834,500
2,000
836,500 836,500
920,708 86,208
1,226 (774)
921,934 85,434
- 755,700 642,538 113,162
- 755,700 642,538 113,162
836,500 80,800
62,812
279,396 198,596
62,812 62,812
$ 899,312 143,612
342,208 198,596
130
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
City Debt Service Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 287,400 287,400 297,559 10,159
Total revenues 287,400 287,400 297,559 10,159
EXPENDITURES
Debt service:
Principal - 790,000 790,000 -
Interest and fiscal charges - 418,750 416,310 2,440
Total expenditures - 1,208,750 1,206,310 2,440
Excess (deficiency) of revenues
over (under) expenditures 287,400 (921,350) (908,751) 12,599
OTHER FINANCING SOURCES (USES)
Transfers in - 935,890 934,165 (1,725)
Transfers out - (4,617) (4,617) -
Total other financing sources (uses) - 931,273 929,548 (1,725)
Net change in fund balance 287,400 9,923 20,797 10,874
535,900 535,900 535,900
Fund balance, end of year $ 823,300 545,823 556,697 10,874
131
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Mary Patricia Ross Trust Permanent Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 950 950 2,816 1,866
Total revenues 950 950 2,816 1,866
Net change in fund balance 950 950 2,816 1,866
Fund balance, beginning of year 93,813 93,813 93,813
Fund balance, end of year $ 94,763 94,763 96,629 1,866
132
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Park Improvement Capital Projects Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 2,000 2,000 23,369 21,369
Developer fees 335,080 335,080 260,225 (74,855)
Total revenues 337,080 337,080 283,594 (53,486)
Net change in fund balance 337,080 337,080 283,594 (53,486)
Fund balance, beginning of year 496,500 496,500 496,500
Fund balance, end of year $ 833,580 833,580 780,094 (53,486)
133
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Street Improvement Capital Projects Fund
Year Ended June 30, 2019
REVENUES
Use of money and property
Developer fees
Total revenues
EXPENDITURES
Capital outlay
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
$ 5,000 (441,310)
204,330 204,330
209,330 (236,980)
89,880 531,190
880,371 676,041
970,251 1,207,231
64,609 - 64,609
Total expenditures - 64,609 - 64,609
Net change in fund balance 209,330 (301,589) 970,251 1,271,840
Fund balance, beginning of year 769,738 769,738 769,738
Fund balance, end of year $ 979,068 468,149 1,739,989 1,271,840
134
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Municipal Improvement Capital Projects Fund
Year Ended June 30, 2019
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 40 40 119 79
Total revenues 40 40 119 79
Net change in fund balance 40 40 119 79
Fund balance, beginning of year 3,960 3,960 3,960
Fund balance (deficit), end of year $ 4,000 4,000 4,079 79
135
This page intentionally left blank.
136
INTERNAL SERVICE FUND
Vehicle Maintenance Fund - Used to account for the cost of operating a maintenance facility for
automotive equipment used by other City departments. Such costs to other departments are billed on a
direct cost basis. The Vehicle Maintenance Fund is responsible for financing replacement vehicles, as
necessary.
137
CITY OF POWAY
Statement of Net Position
Internal Service Fund - Vehicle Maintenance Fund
June 30, 2019
ASSETS
Current assets:
Cash and investments
Due from other funds
$ 10,973,106
391,333
Total current assets 11,364,439
Total assets 11,364,439
DEFERRED OUTFLOWS OF RESOURCES
Pension related 100,575
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Compensated absences due within one year
550,898
13,824
30,674
Total current liabilities 595,396
Noncurrent liabilities:
Net pension liability 619,246
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related
NET POSITION
Unrestricted
Total net position
619,246
1,214,642
11,309
10,239,063
$ 10,239,063
138
CITY OF POWAY
Statement of Revenues, Expenses and Changes in Net Position
Internal Service Fund - Vehicle Maintenance Fund
June 30, 2019
OPERATING REVENUES
Charges for services
$ 3,139,034
Total operating revenues 3,139,034
OPERATING EXPENSES
Personnel services
Maintenance and operations
Total operating expenses
Operating income
481,495
1,133,138
1,614,633
1,524,401
NONOPERATING REVENUES
Interest revenue 300,438
Gain on sale of property 160,265
Other nonoperating revenue 3,131
Total nonoperating revenues 463,834
Income before transfers 1,988,235
TRANSFERS
Transfers in
Transfers out
Total transfers
Change in net position
Net position, beginning of year
Net position, end of year
4,226
(1,777,628)
(1,773,402)
214,833
10,024,230
$ 10,239,063
139
CITY OF POWAY
Statement of Cash Flows
Internal Service Fund - Vehicle Maintenance Fund
Year Ended June 30, 2019
Cash flows from operating activities:
Cash receipts from interfund charges $ 3,139,034
Cash paid to employees for services (349,353)
Cash paid to suppliers of goods or services (725,926)
Net cash provided by opearting activities 2,063,755
Cash flows from noncapital financing activities:
Other nonoperating revenues 3,131
Transfers from other funds 443,626
Transfer to other funds (2,168,961)
Net cash (used for) noncapital financing activities (1,722,204)
Cash flows from capital and related
financing activities:
Sale of capital assets
Net cash provided by capital and related financing activities
160,265
160,265
Cash flows from investing activities:
Interest income 300,438
Net cash provided by investing activities
Net increase in cash and investments
Cash and investments, beginning of year
Cash and investments, end of year
300,438
802,254
10,170,852
$ 10,973,106
Reconciliation of operating income to net
cash provided by operating activities:
Operating income $ 1,524,401
Adjustments to net cash provided by operating activities:
(Increase) decrease in assets:
Deferred outflows - pension related 23,205
Increase (decrease) in liabilities:
Accounts payable 405,751
Accrued liabilities 1,461
Compensated absences 1,960
Net pension liability 106,083
Deferred inflows - pension related 894
Total adjustments 539,354
Net cash provided by operating activities
$ 2,063,755
There were no noncash investing, capital and financing activities during fiscal year ended June 30, 2019.
140
This page intentionally left blank.
141
FIDUCIARY FUNDS
AGENCY FUNDS
The agency funds are used to account for assets held by the City as an agent. Agency funds include the
following:
Developer Deposits Fund - Used to account for the collection and payments of development deposits
from and on behalf of the collective and individual developers.
Parkway Business Centre CFD No. 88-1 Bond Deposits Fund - Used to account for debt service payments
of CFD No. 88-1 Bond Deposits collected through property tax assessments remitted to fiscal agent -
trustee for payment on bonds.
High Valley Road AD No. 96-1 Bond Deposits Fund - Used to account for debt service payments of AD
No. 96-1 Bond Deposits collected through property tax assessments remitted to fiscal agent -trustee for
payment on bonds.
Old Coach Waterline AD No. 00-1 Bond Deposits Fund - Used to account for debt service payments of
AD No. 00-1 Bond Deposits collected through property tax assessments remitted to fiscal agent -trustee
for payment on bonds.
142
CITY OF POWAY
Combining Statement of Fiduciary Net Position - Agency Funds
June 30, 2019
Total
Developer Agency
Deposits Funds
ASSETS
Cash and investments $ 2,685,113 2,685,113
Total assets $ 2,685,113 2,685,113
LIABILITIES
Accounts payable $ 46,820 46,820
Developer deposits $ 2,638,293 2,638,293
Total liabilities
$ 2,685,113 2,685,113
143
CITY OF POWAY
Combining Statement of Changes in Assets and Liabilities
Agency Funds
Year Ended June 30, 2019
DEVELOPER DEPOSITS FUND
Assets
Cash and investments
Total assets
Balance Balance
June 30, 2018 Additions Deletions June 30, 2019
$ 2,975,932 758,946
(1,049,765) 2,685,113
$ 2,975,932 758,946
(1,049,765) 2,685,113
Liabilities
Accounts payable $ 19,898 906,581 (879,659) 46,820
Developer deposits 2,956,034 80,343 (398,084) 2,638,293
Total liabilities $ 2,975,932 986,924 (1,277,743) 2,685,113
PARKWAY BUSINESS CENTRE
CFD No. 88-1 BOND DEPOSITS FUND
Assets
Cash and investments $ 3,235 24 (3,259)
Total assets $ 3,235 24 (3,259)
Liabilities
Accounts payable $ 3,257 -
Developer deposits (22) 22
(3,257)
Total liabilities $ 3,235 22
(3,257)
HIGH VALLEY ROAD
AD No. 96-1 BOND DEPOSITS FUND
Assets
Cash and investments $ 26,811 2,177 (28,988)
Total assets $ 26,811 2,177 (28,988)
Liabilities
Accounts payable $ 26,620 689 (27,309)
Developer deposits 191 2,361 (2,552)
Total liabilities $ 26,811 3,050 (29,861)
144
CITY OF POWAY
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2019
Balance Balance
June 30, 2018 Additions Deletions June 30, 2019
OLD COACH WATERLINE
AD No. 00-1 BOND DEPOSITS FUND
Assets
Cash and investments $ 11,443 319 (11,762)
Total assets $ 11,443 319 (11,762)
Liabilities
Accounts payable $ 11,362 294
Developer Deposits 81 398
Total liabilities $ 11,443 692
ALL AGENCY FUNDS
Assets
Cash and investments
Total assets
(11,656)
(479)
(12,135)
$ 3,017,421
761,466 (1,093,774) 2,685,113
$ 3,017,421
761,466 (1,093,774) 2,685,113
Liabilities
Accounts payable $ 61,137 907,564 (921,881) 46,820
Developer Deposits 2,956,284 83,124 (401,115) 2,638,293
Total liabilities $ 3,017,421 990,688 (1,322,996) 2,685,113
145
This page intentionally left blank.
146
Statistical Section
This page intentionally left blank.
148
STATISTICAL SECTION
This part of the City of Poway's comprehensive annual financial report presents detailed information as
context for understanding the information in the financial statements, note disclosures, and
required supplementary information about the government's overall financial health.
Contents
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.
Revenue Capacity
These schedules contain information to help the reader assess the government's most significant
local revenue sources.
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.
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.
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.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
149
City of Poway
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental activities
Net investment in capital assets
Restricted
Unrestricted - as restated
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted - as restated
Total business -type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted - as restated
Total primary government net position
Fiscal Year
2019
2018
2017
2016
$ 112,260,900
22,034,222
39,573,982
173,869,104
$ 108,494,835
20,641,475
41,227,106
170,363,416
$ 82,020,900
20,453,766
41,716,900
144,191,566
$ 83,171,720
20,846,798
40,985,170
145,003,688
31,143,299
31,936,559
32,118,064
31,108,285
32,941,440
26,735,432
34,817,565
21,537,274
63,079,858
63,226,349
59,676,872
56,354,839
143,404,199
22,034,222
71,510,541
140,612,899
20,641,475
72,335,391
114,962,340
20,453,766
68,452,332
117,989,285
20,846,798
62,522,444
$ 236,948,962
$ 233,589,765
$ 203,868,438
Note:
The City restated the Unrestricted Net Position as of June 30, 2014 for the implementation of GASB 68.
$ 201,358,527
150
Fiscal Year
2015 2014 2013
2012 2011 2010
$ 86,341,264
27,543,292
38,671,488
$ 90,442,061
28,126,711
33,998,725
$ 94,657,067
25,637,627
63,928,726
$ 93,097,532
24,523,246
59,865,964
$ 50,255,141 $ 46,412,443
70,931,373 78,369,565
(71,148,492) (93,996,026)
152,556,044
152,567,497
184,223,420
177,486,742
50,038,022 30,785,982
36,827,442
272,301
26,130,925
38,731,821
279,579
26,867,660
40,746,468
279,604
33,305,899
42,846,682
279,575
34,543,173
43,976,262
280,450
36,469,136
43,508,027
280,450
35,320,341
63,230,668 65,879,060
74, 331, 971 77,669,430
80,725,848 79,108,818
123,168,706
27,815,593
64,802,413
$ 215,786,712
129,173,882
28,406,290
60,866,385
$ 218,446,557
135,403,535 135,944,214
25,917,231 24,802,821
97,234,625 94,409,137
$ 258,555,391 $ 255,156,172
94,231,403 89,920,470
71,211,823 78,650,015
(34,679,356) (58,675,685)
$ 130,763,870 $ 109,894,800
151
City of Poway
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Expenses
Governmental Activities:
General government $ 7,352,494 $ 8,048,190 $ 7,897,624 $ 5,131,272 $ 5,196,033 $ 5,227,809 $ 5,981,436 $ 14,226,478 $ 17,144,376 $ 23,947,500
Public safety 26,562,602 25,139,954 22,939,218 22,347,525 21,500,327 20,906,884 20,213,645 19,514,321 18,899,606 19,475,481
Public works 13,031,776 15,818,102 13,424,529 12,381,234 11,595,286 11,863,623 12,283,876 12,484,070 12,622,204 12,595,756
Development services 6,097,846 4,793,032 4,122,212 3,821,920 3,664,378 3,815,282 3,745,329 2,767,969 2,348,622 4,423,865
Community services 6,445,379 7,372,710 7,695,548 7,197,816 5,843,807 6,115,485 5,063,022 4,848,768 14,398,426 25,213,955
Interest and fiscal charges 407,214 429,617 443,901 505,811 481,905 509,206 (249,757) 8,247,159 17,232,642 14,969,311
Total governmental activities 59,897,311 61,601,605 56,523,032 51,385,578 48,281,736 48,438,289 47,037,551 62,088,765 82,645,876 100,625,868
Business -type activities:
Water 24,026,914 25,502,524 21,005,264 21,502,464 22,349,556 23,314,233 22,367,122 20,652,724 18,143,829 18,226,463
Sewer 9,798,612 8,797,837 8,564,971 8,730,955 9,451,529 9,434,739 10,069,336 8,374,223 7,651,228 7,522,634
Total business -type activities 33,825,526 34,300,361 29,570,235 30,233,419 31,801,085 32,748,972 32,436,458 29,026,947 25,795,057 25,749,097
Total primary government expenses $ 93,722,837 $ 95,901,966 $ 86,093,267 $ 81,618,997 $ 80,082,821 $ 81,187,261 $ 79,474,009 $ 91,115,712 $ 108,440,933 $ 126,374,965
Program revenues
Governmental Activities:
N Charges for services:
lri N General government $ 165,049 $ 352,830 $ 326,019 $ 276,113 $ 280,796 $ 260,802 $ 118,347 $ 120,126 $ 96,397 $ 91,745
Public safety 1,810,431 2,171,552 2,067,306 1,884,369 1,759,543 1,908,337 2,155,607 2,030,510 2,121,984 2,131,729
Public works 3,157,508 2,740,562 2,727,104 2,733,956 2,699,095 2,753,917 2,738,196 3,537,666 4,422,522 4,479,896
Development services 2,175,062 1,975,450 1,648,388 1,780,160 1,558,945 1,534,304 1,384,543 1,049,318 1,584,838 1,332,714
Community services 3,081,321 2,595,229 2,862,789 2,625,260 2,570,423 2,436,024 2,243,495 2,160,596 2,111,476 2,821,718
Operating grants and contributions 2,124,720 2,322,871 1,133,734 1,356,811 1,543,785 1,706,081 1,811,203 4,760,819 5,857,360 7,615,477
Capital grants and contributions 1,808,484 198,584 270,802 120,271 90,379 66,168 99,831 833,137 1,155,384 1,246,555
Total governmental activities 14,322,575 12,357,078 11,036,142 10,776,940 10,502,966 10,665,633 10,551,222 14,492,172 17,349,961 19,719,834
Business -type activities:
Charges for services:
Water 22,984,400 25,583,581 21,450,064 18,590,894 20,629,080 23,381,953 22,207,174 20,612,607 18,694,318 17,881,695
Sewer 8,737,411 8,486,571 8,396,553 8,003,913 7,423,494 7,347,502 7,228,097 7,300,875 8,759,001 8,651,681
Capital grants and contributions 3,589 - - -
Total business -type activities 31,721,811 34,073,741 29,846,617 26,594,807 28,052,574 30,729,455 29,435,271 27,913,482 27,453,319 26,533,376
Total primary government revenues $ 46,044,386 $ 46,430,819 $ 40,882,759 $ 37,371,747 $ 38,555,540 $ 41,395,088 $ 39,986,493 $ 42,405,654 $ 44,803,280 $ 46,253,210
Net (expense)/revenue
Governmental activities (45,574,736) (49,244,527) (45,486,890) (40,608,638) (37,778,770) (37,772,656) (36,486,329) (47,596,593) (65,295,915) (80,906,034)
Business -type activities (2,103,715) (226,620) 276,382 (3,638,612) (3,748,511) (2,019,517) (3,001,187) (1,113,465) 1,658,262 784,279
Total primary government net expense $ (47,678,451) $ (49,471,147) $ (45,210,508) $ (44,247,250) $ (41,527,281) $ (39,792,173) $ (39,487,516) $ (48,710,058) $ (63,637,653) $ (80,121,755)
City of Poway
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
General revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property taxes $ 23,819,845
Sales taxes 16,248,747
Motor vehicle license tax -
Transient occupancy tax 674,230
Franchise taxes 1,601,759
Other taxes 2,709,246
Total taxes 45,053,827
Investment earnings 2,267,414
Miscellaneous 1,237,072
Sale/disposal of capital assets -
Transfers 522,111
Extraordinary Item
Total governmental activities
Business -type activities:
Investment earnings
Contributed capital
Miscellaneous
Transfers
Extraordinary Item
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
$ 24,153,826 $ 22,166,004 $ 20,455,287 $ 18,998,523 $ 20,188,541 $ 21,378,147 $ 34,713,961 $ 50,960,736 $ 51,526,758
13,981,478 13,774,763 13,172,467 12,520,103 13,418,087 13,692,553 11,276,884 10,418,322 9,833,390
22,085 26,685 262,412 150,641
654,235 609,306 615,482 573,531 523,112 483,568 462,508 433,934 367,434
1,611,000 1,466,388 1,639, 956 1,696,186 1,555, 816 1,491, 227 1,512, 878 1,465,926 1,491, 231
3,630,276 3,247,931 3,423,165 3,192,356 2,761,696 1,816,574 626,421 616,466 629,589
44,030,815 41,264,392 39,306,357 36,980,699 38,447,252 38,884,154 48,619,337 64,157,796 63,999,043
1,468,845 1,165,528 1,845,972 1,380,030 1,573,545 1,000,883 1,297,998 5,964,802 8,287,516
3,285,592 1,805,482 1,195,244 1,330,954 1,846,762 3,374,664 542,954 512,858 1,251,844
- - - (385,253) - (2,088,434) 13,561,625 -
426,823 439,366 467,591 (1,539,113) 1,425 (36,694) 2,284,985 350,874 470,498
26,204,302 (9,758,882) - - 128,406,347 -
49,080,424 75,416,377 44,674,768 33,056,282 37,767,317 41,868,984 43,223,007 179,063,187 84,547,955 74,008,901
1,144,612 264,609 102,656 230,982 149,611 217,194 23,733
1,334,723 3,938,311 3,382,361 1,077,957 1,261,448 82,930 47,583
(522,111) (426,823) (439,366) (467,591) (310,940) (441,725)
(4,078,565)
65,593
276,439
(407,588) (2,284,985)
254,279 463,177
4,225,637
55,363 503,595
(350,874) (470,498)
1,957,224 3,776,097 3,045,651 (3,237,217) 1,100,119 (141,601)
$ 51,037,648 $ 79,192,474 $ 47,720,419 $ 29,819,065 $ 38,867,436 $ 41,727,383 $ 42,886,735
$
$
3,505,688 $ 26,171,850 $ (812,122) $ (7,552,356) $ (11,453) $ 4,096,328 $ 6,736,678
(146,491) 3,549,477
3,322,033 (6,875,829) (2,648,392) (2,161,118) (3,337,459)
(336,272) (1,942,953)
(41,232) 4,721,911
$ 177,120,234 $ 84,506,723 $ 78,730,812
$ 131,466,594 $ 19,252,040 $ (6,897,133)
(3,056,418) 1,617,030 5,506,190
3,359,197 $ 29,721,327 $ 2,509,911 $ (14,428,185) $ (2,659,845) $ 1,935,210 $ 3,399,219
$ 128,410,176 $ 20,869,070 $ (1,390,943)
City of Poway
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
General Fund
Non -spendable
Restricted
Committed
Assigned
Unassigned
Reserved
Unreserved:
Designated
Undesignated
Total General Fund
Fiscal Year
2019 2018 2017 2016
$ 15,550,648 $ 15,639,036 $ 10,477,915 $ 10,286,955
20,961,853
22,536,818
7,308,113
19,321,583
16,613,992
14,063,706
40,438,366
14,649,159
40,367,436
16,010,227
$ 66,357,432 $ 65,638,317 $ 65,565,440 $ 66,664,618
All Other Governmental Funds
Non -spendable $ - $ - $ - $
Restricted 22,590,919 20,641,475 20,453,766 20,846,798
Committed -
Assigned
Unassigned (32,285) (15,860)
Reserved
Unreserved:
Designated:
Special revenue funds
Debt service funds
Capital projects funds
Undesignated:
Special revenue funds
Debt service funds
Capital projects funds
Total all Other Governmental Funds $ 22,558,634 $ 20,625,615 $ 20,453,766 $ 20,846,798
Total Fund Balance $ 88,916,066 $ 86,263,932 $ 86,019,206 $ 87,511,416
Note:
The City implemented GASB 54, which established new classifications for fund balances, in Fiscal Year 2011.
154
$
Fiscal Year
2015 2014 2013 2012 2011 2010
$ 10,495,426 $ 10,134,007 $ 10,157,087 $ 10,218,860 $ 10,151,108
10,022,691 10,026,079 9,999,309 10,019,883 10,037,638
15,870,595 15,383,344 7,173,822 6,666,188 6,466,719
29,285,138 26,624,039 30,695,920 22,906,009 23,955,242
- - - 4,647,709
31,724,737
$ 65,673,850 $ 62,167,469 $ 58,026,138 $ 49,810,940 $ 50,610,707 $ 36,372,446
$ - $ - $ - $ - $ - $ 10,151,108
27,543,292 28,126,711 25,929,921 23,733,859 62,455,191
8,564,840
(88,658)
- 51,660,768
20,795,704
- 5,913,093
$ 27,543,292 $ 28,126,711 $ 25,929,921 $ 23,733,859 $ 70,931,373 $ 78,369,565
$ 93,217,142 $ 90,294,180 $ 83,956,059 $ 73,544,799 $ 121,542,080 $ 114,742,011
155
City of Poway
Changes In Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2019 2018 2017 2016
Revenues
Taxes $ 45,048,215 $ 44,030,815 $ 41,264,392 $ 39,306,357
Licenses and permits 636,007 698,848 691,524 608,914
Intergovernmental 2,541,499 1,449,537 978,759 1,252,604
Charges for services 4,394,947 2,682,918 2,870,826 2,629,776
Fines and forfeitures 174,431 150,968 137,772 121,246
Use of money and property 2,638,552 1,376,993 1,116,686 1,664,836
Developer Fees 4,257,642 5,538,625 4,339,215 4,317,628
Assessment levied 1,913,839 1,900,026 1,919,533 1,926,988
Other revenues 992,253 3,280,099 1,802,405 1,241,968
Total revenues 62,597,385 61,108,829 55,121,112 53,070,317
Expenditures
Current:
General government 6,165,984 4,356,172 4,920,707 4,713,981
Public safety 25,247,048 24,361,353 22,842,844 21,857,490
Public works 10,796,442 11,665,054 10,914,521 10,063,808
Development services 5,741,072 4,503,384 4,305,937 4,067,434
Community services 5,834,051 5,837,896 6,197,514 5,954,740
Capital outlay 7,249,857 10,049,051 7,898,228 2,855,748
Debt service:
Principal 790,000 770,000 755,000 735,000
Principal -early retirement -sale of capital asset - -
Interest and fiscal charges 416,310 438,961 452,512 514,008
Transfers to fiduciary funds - -
Tax shift
Tax increment reimbursements
Total expenditures 62,240,764 61,981,871 58,287,263 50,762,209
Excess of revenues over (under) expenditures
Other Financing Sources (Uses)
Proceeds from issuance of debt
Refunding bond activity -net
Proceeds from sale of capital assets
Transfers in (out) net
Total other financing sources
356,621 (873,042)
(3,166,151) 2,308,108
2,295,513 1,117,768
1,673,941 1,745,048
2,295,513 1,117,768
1,673,941 1,745,048
Extraordinary Items - (9,758,882)
Net change in fund balance $ 2,652,134 $ 244,726 $ (1,492,210) $ (5,705,726)
Debt service as a percentage of noncapital
expenditures
2.2% 2.1%
2.2% 2.5%
156
Fiscal Year
2015 2014
2013 2012 2011 2010
$ 36,980,699
546,742
1,361,671
2,564,852
135,609
1,265,837
4,013,227
1,903,369
1,328,515
$ 38,447,252
561,251
828,278
2,386,206
184,855
1,495,911
4,806,170
1,898,872
1,834,531
50,100,521 52,443,326
$ 38,996,849 $ 51,939,098
543,838 507,908
1,062,851 1,564,484
1,671,506 1,439,891
527,006 554,570
2,188,570 3,291,466
4,029,232 3,279,373
1,895,888 1,874,967
2,862,343 497,517
53,778,083 64,949,274
$ 66,623,806
457,905
1,800,145
3,232,221
678,468
7,821,732
4,516,243
1,902,409
729,933
$ 67,411,848
433,517
2,994,005
3,140,274
750,551
12,180,028
3,711,578
1,886,300
2,228,662
87,762,862 94,736,763
4,372,077 4,202,841 4,239,824 5,798,899 2,680,162 6,056,348
21, 299,851 20,433,826 19,536,711 18,889,733 18,328,287 18,966,380
9,526,140 9,639,766 9,971,383 10,084,437 9,990,368 9,943,681
3,811,954 3,830,435 3,779,577 2,807,935 2,388,077 4,475,943
5,212,917 4,912,545 4,733,922 4,678,369 9,894,345 9,048,983
1,603,241 2,282,947 860,039 8,542,370 16,818,821 27,639,839
715,000 700,000 635,000 2,405,000 6,703,020 7,150,000
- 26,720,000
490,336 506,527 570,087 6,820,619 17,972,119 14,943,766
- 440,300 444,282 -
2,820,770 13,700,882
48,711 5,948,554 2,380,740
47,031,516 46,949,187 44,770,825 60,076,073 120,264,523 114,306,562
3,069,005 5,494,139 9,007,258 4,873,201 (32,501,661) (19,569,799)
14,350,000 105,109 169,930 161,049
(15,013,350) -
842,166 38,300,000
(146,043) 843,982 1,225,186 3,823,436 831,800 2,745,545
(146,043) 843,982 1,404,002 3,928,545 39,301,730 2,906,594
(56,799,027)
$ 2,922,962 $ 6,338,121 $ 10,411,260 $ (47,997,281) $ 6,800,069 $ (16,663,205)
2.6% 2.6%
2.7% 15.8%
22.1% 21.3%
City of Poway
Assessed Value of Taxable Property
Last Ten Fiscal Years
Fiscal Year Assessed Value
Ended Personal
June 30, Land Improvements Property Total Exemptions
2010 $ 3,640,861,781 $ 4,548,446,929 $ 288,729,686 $ 8,478,038,396 $ (183,766,176)
2011 3,606,251,228 4,540,602,915 276,448,124 8,423,302,267 (178,136,001)
2012 3,638,418,566 4,608,371,669 286,292,343 8,533,082,578 (193,398,758)
2013 3,604,077,934 4,615,585,498 294,522,436 8,514,185,868 (212,901,964)
2014 3,770,334,144 4,733,730,176 298,807,480 8,802,871,800 (227,065,282)
2015 3,980,268,935 4,944,098,407 286,435,733 9,210,803,075 (236,519,578)
2016 4,198,319,498 5,193,793,825 287,853,187 9,679,966,510 (243,798,083)
2017 4,360,983,790 5,372,307,118 303,567,743 10,036,858,651 (248,041,928)
2018 4,572,607,138 5,547,678,336 299,989,126 10,420,274,600 (255,512,475)
2019 4,827,930,308 5,779,676,596 326,995,646 10,934,602,550 (270,178,713)
Note:
In 1978, the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to
property tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property being
taxed. Each year the assessed value of property may be increased by an "inflation factor" that may not exceed 2%. With few
exceptions, property is only re -assessed at the time that it is sold to a new owner. At that point the new assessed value is
fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed value base has
become significantly undervalued when compared to the true market value of the property. Because the true market value is
not tied to any type of annual valuation process, there is no reliable means of determining the market value of the parcels
within the City and therefore this amount is not disclosed.
Source: San Diego County Assessor's Office
158
Net Taxable
Value before HOE
$ 8,294,272,220
8,245,166,266
8,339,683,820
8,301,283,904
8,575,806,518
8,974,283,497
9,436,168,427
9,788,816,723
10,164,762,125
10,664,423,837
Assessed Value (Continued)
Homeowners
Exemptions (HOE)
$ (78,218,791)
(77,678,375)
(76,787,840)
(75,843,150)
(74,913,680)
(74,448,910)
(73,706,162)
(73,044,158)
(72,492,736)
(71,935,662)
Net Taxable
Value
$ 8,216,053,429
8,167,487,891
8,262,895,980
8,225,440,754
8,500,892,838
8,899,834,587
9,362,462,265
9,715,772,565
10,092,269,389
10,592,488,175
Change Estimated Total
From Tax Direct
Prior Year Revenues Tax Rate
1.86% $ 9,189,474 0.211%
- 0.59% 9,169,316 0.211%
1.17% 9,374,419 0.211%
- 0.45% 9,311,665 0.211%
3.35% 9,648,224 0.211%
4.69% 10,117,764 0.211%
5.20% 10,614,545 0.211%
3.77% 11,043,425 0.211%
3.88% 11,498,968 0.211%
4.96% 22,527,293 0.211%
159
City of Poway
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Overlapping Rates
Poway Education Palomar
Fiscal Year Unified Revenue Community Total 1%
Ended City Direct School San Diego Augmentation College Property Tax
June 30, Rate District County Fund District All Other Rate
2010 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2011 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2012 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2013 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2014 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2015 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2016 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2017 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2018 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2019 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
Rates for Voter Approved Bond Indebtedness
Poway
Fiscal Year Total 1% Unified Total
Ended Property School Property Tax
June 30, Tax Rate City Rate District All Other Rate
2010 1.000% 0.000% 0.055% 0.031% 1.086%
2011 1.000% 0.000% 0.055% 0.042% 1.097%
2012 1.000% 0.000% 0.055% 0.041% 1.096%
2013 1.000% 0.000% 0.055% 0.041% 1.096%
2014 1.000% 0.000% 0.055% 0.040% 1.095%
2015 1.000% 0.000% 0.055% 0.040% 1.095%
2016 1.000% 0.000% 0.055% 0.040% 1.095%
2017 1.000% 0.000% 0.055% 0.045% 1.100%
2018 1.000% 0.000% 0.055% 0.045% 1.100%
2019 1.000% 0.000% 0.063% 0.045% 1.108%
Note:
In 1978, the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to property
tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property being taxed. The
1.00% is shared by all taxing agencies which the subject property resides within. Because the rate is fixed at 1.00%, each agency's
portion of the 1.00% does not change materially from year-to-year. Rates over the 1.00% are for voter approved bonded
indebtedness.
Source: San Diego County Assessor's Office
160
City of Poway
Principal Secured Property Taxpayers
Current Year and Nine Years Ago
Taxpayer
2019 2010
Percentage Percentage
of Total City of Total City
Net Net
Taxable Assessed Assessed
Assessed Secured Taxable Assessed Secured
Secured Value Rank Value Secured Value Rank Value
Sorrento West Properties, Inc.
HCPLS Poway, LLC
Ventas, Inc.
RREEF CPIF Kirkham Way JV, LLC
San Miguel Valley Corp.
Hometown Poway Royal Estates, LLC
P M I Summerlyn, LLC
Vons Business Properties
Costco Wholesale Corp.
Harsch Investment Properties, LLC
Slough Poway I, LLC
PDP Pomerado, LLC
PR Stowe, LLC
Government Employees Insurance Co.
Sysco Food Services
Toray Membrane USA, Inc.
Fairfield Township, LLC
Poway Crossing Investors, LLC
Total
Total City net assessed secured value
$ 406,017,588 1 3.81% $ 98,320,391 2 1.16%
122,788,295 2 1.15%
83,950,289 3 0.79%
58,409,038 4 0.55%
53,884,741 5 0.51%
43,844,153 6 0.41%
43,668,709 7 0.41%
42,047,816 8 0.39%
41,899,722 9 0.39% 36,032,725 5 0.43%
41,666,201 10 0.39%
107,626,000 1 1.27%
71,061,721 3 0.84%
40,508,901 4 0.48%
35,286,922 6 0.42%
35,179,588 7 0.41%
35,075,350 8 0.41%
34,411,912 9 0.41%
31,900,500 10 0.38%
$ 938,176,552 8.80% $ 525,404,010 6.20%
$ 10,664,423,837 $ 8,294,272,220
Source: County of San Diego Offices of the Auditor and Controller, and Assessor's Office
161
City of Poway
Assessed Value of Taxable Property
Successor Agency & Redevelopment Tax Increment Property Tax
Last Ten Fiscal Years
Fiscal Year Assessed Value Change Estimated Total
Ended Personal Base Year Net Taxable From Tax Direct
June 30, Land Improvements Property Total Exemptions Values Value Prior Year Revenues Tax Rate
Redevelopment Agency
2010 $ 1,698,144,577 $ 2,286,610,454 $ 213,648,005 $ 4,198,403,036 $ (68,141,344) $ (186,287,869) $ 3,943,973,823 3.44% $ 39,822,711 1.010%
2011 1,669,652,573 2,277,541,902 210,644,139 4,157,838,614 (67,140,049) (186,287,869) 3,904,410,696 -1.00% 39,482,933 1.011%
Successor Agency
2012 1,645,381,909 2,296,714,929 219,462,356 4,161,559,194 (73,438,572) (186,287,869) 3,901,832,753 -0.07% 39,018,328 1.000%
2013 1,625,001,094 2,299,815,065 244,826,073 4,169,642,232 (90,214,209) (186,287,869) 3,893,140,154 -0.22% 38,931,402 1.000%
2014 1,673,995,306 2,366,297,428 249,192,369 4,289,485,103 (94,861,189) (186,287,869) 4,008,336,045 2.96% 40,083,360 1.000%
2015 1,765,636,957 2,462,514,646 237,703,511 4,465,855,114 (95,034,853) (186,287,869) 4,184,532,392 4.40% 41,845,324 1.000%
2016 1,858,719,377 2,594,263,565 243,714,010 4,696,696,952 (99,167,944) (186,287,869) 4,411,241,139 5.42% 44,112,411 1.000%
2017 1,913,629,433 2,680,780,152 252,543,674 4,846,953,259 (99,807,403) (186,287,869) 4,560,857,987 3.39% 45,608,580 1.000%
2018 2,000,869,745 2,762,424,969 245,541,310 5,008,836,024 (101,399,206) (186,287,869) 4,721,148,949 3.51% 47,211,489 1.000%
N 2019 2,102,590,313 2,889,374,758 270,699,765 5,262,664,836 (108,159,006) (186,287,869) 4,968,217,961 5.23% 49,682,180 1.000%
Note:
In 1978, the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to
property tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property
being taxed. Each year the assessed value of property may be increased by an "inflation factor" that may not exceed 2%.
With few exceptions, property is only re -assessed at the time that it is sold to a new owner. At that point the new
assessed value is fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed
value base has become significantly undervalued when compared to the true market value of the property. Because the
true market value is not tied to any type of annual valuation process, there is no reliable means of determining the
market value of the parcels within the City; therefore, this amount is not disclosed.
AB XI 26 dissolved all Redevelopment Agencies in California and created Successor Agencies to manage the dissolution
process, which will last the life of each agency. Poway's Redevelopment Agency was scheduled to expire in January 2037.
Source: San Diego County Assessor's Office
City of Poway
Redevelopment Property Tax Levies and Collections
Fiscal Years 2010 - 2012
Within The Year of Levy Collections
Fiscal Year Current Current Percent From Prior
Ended Secured Secured of Levy Years' Total
June 30, Tax Levy Collected Collected Levies Collections
2010 39,609,344 38,592,272 97.43% 1,495,015 40,087,287
2011 39,189,880 38,684,907 98.71% 1,399,870 40,084,777
2012 39,162,627 21,655,038 55.30% 580,773 22,235,811
Note 1: San Diego County does not break out prior years' collections by fiscal year, therefore, the amount reported in
the Collections From Prior Years' Levies column is the cumulative amount collected during that fiscal year for all prior
year levies, not the amount related to each fiscal year.
Note 2: As part of AB XI 26 the Agency's last tax increment distribution was received in January 2012. Consequently,
the Percent of Levy Collected was only 55.30%.
Note 3: AB XI 26 dissolved all Redevelopment Agencies in California and created Successor Agencies to manage the
dissolution process which will last the life of each agency. Poway's Redevelopment Agency was scheduled to expire in
January 2037.
Note 4: As part of AB XI 26, the Redevelopment Agency was dissolved and the last tax increment distribution was
received in January 2012, which is why there is less than ten years of activity presented.
Source: San Diego County Assessor's Office
163
City of Poway
General Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
Ended
June 30,
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Within The Year of Levy
Current Tax
Levy
$ 16,665,674
14,772,947
14,976,590
15,044,676
15,325,043
12,524,910
12,958,510
13,390,895
13,802,364
14,345,375
Current
Collected
$ 16,276,757
14,515,679
14,752,163
14,897,994
15,160,972
12,418,741 (2)
12,859,128
13,279,054
13,694,433
14,229,865
Cumulative Prior Years of Levy
Percent of
Levy Prior Years'
Collected Levies
97.67%
98.26%
98.50%
99.03%
98.93%
99.15%
99.23%
99.16%
99.22%
99.19%
$ 849,654
808,521
702,501
550,273
507,586
470,515
312,585
285,552
267,874
254,246
Collection
from Prior
Years'
Levies (1)
$ 490,668
411,305
232,773
214,571
226,146
278,069
143,345
140,081
133,325
134,667
Percent of
Prior
Years'
Levies
Collected
57.75%
50.87%
33.13%
38.99%
44.55%
59.10%
45.86%
49.06%
49.77%
52.97%
Total Collections to Date
Total
Levies
$ 17,515,328
15,581,468
15,679,092
15,594,949
15,832,630
12,995,425
13,271,094
13,676,447
14,070,237
14,599,621
Notes:
(1) San Diego County does not break out prior years' collections by fiscal year, therefore, the amount reported is the
cumulative amount collected during that fiscal year for all prior year levies, not the amount related to each fiscal year.
(2) The significant decrease was due to the final assessment for the Community Facilities District #88-1 being in the prior
fiscal year. That amount was $3,209,813.
Source: San Diego County Assessor's Office
Total
Collections
$ 16,767,426
14,926,983
14,984,936
15,112,565
15,387,118
12,696,810
13,002,474
13,419,135
13,827,758
14,364,532
Percentage
95.73%
95.80%
95.57%
96.91%
97.19%
97.70%
97.98%
98.12%
98.28%
98.39%
City of Poway
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year
Ended June
30,
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Governmental Activities
Tax
Allocation
Bonds
Certificates
of
Participation Loan Payable
$ 234,987,072
228,957,393
$ 48,454,096
20,870,836
17,627,771
16,753,498
16,261,467
15,522,575
14,764,508
13,987,299
13,195,977
12,385,546
$ 2,400,513
2,542,009
Business -type
Activities
Revenue
Bonds
Total Percentage
Primary of Personal Per
Government Income Capita
Private Purpose Trust
Certificates
of Tax Allocation
Participation Bonds
Loan
Payable
Total
Private
Purpose Trust
$ 1,380,571 $
1,182,394
969,149
745,904
512,660
264,415
287,222,252 12.39% $ 5,518
253,552,632 11.53% 5,265
18,596,920 0.81% 384
17,499,402 0.72% 360
16,774,127 0.69% 342
15,786,990 0.62% 322
14,764,508 0.54% 295
13,987,299 0.49% 278
13,195,977 0.45% 263
12,385,546 0.41% 246
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
The Private Purpose Trust's Tax Allocation Bonds were refunded in July 2015.
Source: City of Poway Finance Department
$ - $
2,344,312
1,986,311
1,618,877
1,237,034
840,722
430,053
222,516,942 2,672,503
215,576,452 2,780,463
208,316,472 2,885,549
200,633,015 2,971,614
172,587,873 3,087,885
163,593, 731 3,193,031
154,504,587 3,338,564
145,646,325 -
227,533,757
220,343,226
212,820,898
204,841,663
176,516,480
167,216,815
157,843,151
145,646,325
City of Poway
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Outstanding
General
Bonded Debt
Fiscal Year Tax Percent of
Ended Allocation Assessed Per
June 30, Bonds Value (a) Capita
2010 $ - 0.00%
2011 - 0.00%
2012 222,516,942 2.61% 4,599
2013 215,576,452 2.53% 4,439
2014 208,316,472 2.37% 4,253
2015 200,633,015 2.18% 4,091
2016 172,587,873 1.78% 3,445
2017 163,593,731 1.63% 3,255
2018 154,504,587 1.48% 3,077
2019 145,646,325 1.33% 2,894
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a) Assessed value has been used because the actual value of taxable property is not readily
available in California.
The Tax Allocation Bonds were refunded in July 2015.
Source: City of Poway Finance Department
City of Poway
Direct and Overlapping Debt
As of June 30, 2019
2018-19 Assessed Valuation:
$ 10,664,423,837
Estimated Share
Debt % of Overlapping
OVERLAPPING TAX AND ASSESSMENT DEBT: Outstanding Applicable (t) Debt
Metropolitan Water District $ 48,050,000 0.364% $ 174,902
Palomar Community College District 618,718,625 8.703% 53,847,082
Poway Unified School District School Facilities Improvement District No. 2002-1 134,315,766 39.649% 53,254,858
Poway Unified School District School Facilities Improvement District No. 2007-1 174,158,985 40.282% 70,154,722
Escondido Union High School District 85,428,729 0.074% 63,217
San Pasqual Union School District 197,458 2.234% 4,411
Palomar Pomerado Hospital District 431,124,259 12.692% 54,718,291
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 232,217,483
DIRECT & OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations $ 255,365,000 2.027% $ 5,176,249
San Diego County Pension Obligations 508,765,000 2.027% 10,312,667
San Diego County Superintendent of Schools General Fund Obligations 10,085,000 2.027% 204,423
Palomar Community College District Certificates of Participation 2,140,000 8.703% 186,244
Escondido Union High School District Certificates of Participation 54,250,000 0.074% 40,145
Poway Unified School District Certificates of Participation 56,110,000 23.759% 13,331,175
City of Poway Certificates of Participation 12,385,546 100.000% 12,385,546
TOTAL OVERLAPPING GENERAL FUND DEBT $ 41,636,449
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $ 131,225,000 100.000% $ 131,225,000
TOTAL DIRECT DEBT
TOTAL OVERLAPPING DEBT
$ 12,385,546
$ 392,693,386
COMBINED TOTAL DEBT $ 405,078,932 (2)
Ratios to 2018-19 Assessed Valuation:
Total Overlapping Tax and Assessment Debt
Total Direct Debt
Combined Total Debt
2.18%
0.12%
3.80%
Ratios to Redevelopment Successor Agency Incremental Valuation ($4,968,217,961):
Total Overlapping Tax Increment Debt 2.64%
Notes:
(1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by
determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed
value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the
outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering
the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this
does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Source: California Municipal Statistics, Inc. and City of Poway Finance Department
167
City of Poway
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2019 2018 2017 2016
Assessed valuation $ 5,696,205,876 $ 5,443,613,176 $ 5,227,958,736 $ 5,024,927,288
Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 1,424,051,469 1,360,903,294 1,306,989,684 1,256,231,822
Debt limit percentage 15% 15% 15% 15%
Debt limit 213,607,720 204,135,494 196,048,453 188,434,773
Total net debt applicable to limit:
General obligation bonds
Legal debt margin 0.00% 0.00% 0.00% 0.00%
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this
provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each
parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations
shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the
25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments
located within the state.
Source:
City of Poway Finance Department
San Diego County Assessors Office
168
Fiscal Year
2015 2014 2013 2012 2011 2010
$ 4,789,751,105 $ 4,567,470,473 $ 4,408,143,750 $ 4,437,851,067 $ 4,340,755,570 $ 4,350,898,397
25% 25% 25% 25% 25% 25%
1,197,437,776 1,141,867,618 1,102,035,938 1,109,462,767 1,085,188,893 1,087,724,599
15% 15% 15% 15% 15% 15%
179,615,666 171,280,143
165,305,391 166,419,415
162,778,334 163,158,690
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
169
City of Poway
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal Year
Ended
June 30,
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Tax Allocation Bonds
Tax
Increment
$ 39,377,603
39,015,261
21,926,632
RPTTF
Distribution
16,047,570
39,511,570
40,907,420
42,495,591
44,786,412
46,953,802
47,750,166
50,733,852
Debt Service
Principal
$ 5,555,000
5,775,000
6,180,000
6,695,000
7,020,000
7,450,000
7,440,000
7,110,000
7,205,000
6,975,000
Interest
$ 11,877,545
11, 658,142
11,411,148
11,169,832
10,889,354
10,565,336
6,558,087
6,895,377
6,802,425
6,674,688
Total Coverage
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
RPTTF is the acronym for the Redevelopment Property Tax Trust Fund.
Source: City of Poway Finance Department
$ 17,432,545 2.26
17,433,142 2.24
17,591,148 2.16
17,864,832 2.21
17,909,354 2.28
18,015,336 2.36
13,998,087 3.20
14,005,377 3.35
14,007,425 3.41
13,649,688 3.72
170
City of Poway
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per Capita Unemployment
Calendar Year Population Income Personal Income Labor Force Rate
2010 52,056 $ 2,318,838,039 $ 44,545 28,000 6.3%
2011 48,155 2,198,908,930 45,663 27,900 6.2%
2012 48,382 2,292,564,112 47,385 28,600 5.5%
2013 48,559 2,418,759,897 49,811 29,100 4.3%
2014 48,979 2,434,069,144 49,696 28,900 3.6%
2015 49,041 2,530,249,449 51,595 26,000 3.2%
2016 50,103 2,723,859,688 54,365 25,900 3.3%
2017 50,253 2,832,825,802 56,371 25,500 2.8%
2018 50,207 2,934,102,264 58,440 26,000 3.2%
2019 50,320 3,053,923,177 60,690 25,700 2.7%
Sources:
Population - State of California Department of Finance
Personal Income - State of California Department of Finance/U.S. Bureau of Economic Analysis
Employment Information - State of California Employment Development Department - Fiscal Year
171
City of Poway
Principal Employers
Current Year and Nine Years Ago
Employer
2019 2010
Percentage Percentage
Number of of Total City Number of of Total City
Employees Rank Labor Force Employees Rank Labor Force
General Atomics Aeronautical Systems 7,160 1 27.86% 2,392 1 8.54%
GEICO Direct 1,720 2 6.69% 1,250 3 4.46%
Poway Unified School District 1,366 3 5.32% 1,341 2 4.79%
Delta Design, Inc. 750 4 2.92%
Pomerado Hospital 740 5 2.88% 776 4 2.77%
Mitchell Repair Information Company 400 6 1.56%
Sysco Food Services of SD 385 7 1.50% 455 6 1.63%
Walmart 370 8 1.44% 345 9 1.23%
Arch Health Partners 300 9 1.17%
Costco Wholesale Corp. 295 10 1.15%
Cohu Inc. 626 5 2.24%
Digirad Corporation 358 8 1.28%
Core Logic Credco 400 7 1.43%
City of Poway
Mitchell Repair Information Company
Neal Electric Corporation 309 10 1.10%
Total 13,486 52.47% 8,252 29.47%
Total City Labor Force
25,700 28,000
Sources:
City of Poway Economic Development Division -by Employer
State of California Employment Development Department -Total City Labor Force
172
City of Poway
Full -Time -Equivalent City Employees by Function
Last Ten Fiscal Years
Function 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
General government 35.98 31.21 32.44 32.44 29.48 28.96 27.96 31.96 33.96 41.00
Public Safety (a) 57.00 58.00 56.00 56.00 55.00 54.00 54.00 54.00 54.00 54.00
Public works 82.36 86.84 89.36 88.36 84.36 79.96 81.96 85.96 84.96 84.98
Redevelopment Services - - - - - - - - 9.35 9.71
Community Services 50.39 50.03 49.47 48.99 46.49 45.78 45.57 46.25 46.03 47.48
Development Services 25.50 25.50 22.50 22.50 21.96 22.96 23.96 30.96 29.96 29.96
Total (b) 251.23 251.58 249.77 248.29 237.29 231.66 233.45 249.13 258.26 267.13
Notes:
Amounts shown are the number of full -time -equivalents (FTEs) approved in each operating budget for the fiscal year.
(a) Not including law enforcement services, which are provided through contract with the County of San Diego Sheriff.
(b) FY2010 to FY2018 numbers are updated to reflect the FTEs. In previous years' reports, only the full-time positions were reported.
Source: City of Poway Financial Plan
173
City of Poway
Operating Indicators
Last Ten Fiscal Years
Function
2019 2018 2017 2016 2015
General government:
Business registrations issued
Vendor payments processed
2,253 1,859 1,987 1,509 1,510
6,203 6,689 6,623 6,705
Public Safety:
Arrests made 978 900 900 1,079 1,214
Fire emergency responses 5,706 5,146 4,755 4,564 4,229
Safety Inspections 2,100 2,451 2,652 2,587 3,069
Development Services:
Building permits issued
Building inspections
2,168 2,465 2,013 2,444 2,070
8,572 9,023 9,600 9,162 12,488
Culture and recreation:
Performing arts center attendance 51,806 56,573 56,637 57,908 60,276
Library -number of holdings in collection (1) (1) (1) (1) (1)
Library -number of holdings circulated 924,021 897,531 863,874 782,599 733,689
Athletic field permits issued 301 335 285 225 232
Highways and streets:
Roads resurfaced in square feet 122,250 204,000 306,543 306,000 237,024
Roads slurry sealed in square feet 4,282,280 4,231,308 4,627,262 4,933,522 4,378,483
Pot holes repaired/work orders 216 189 191 213 193
Water:
Residential water customers 12,673 12,662 12,631 12,625 12,765
Commercial water customers 509 500 495 493 658
All other water customers 821 816 812 811 /
Average daily consumption (mg) 7.48 9.47 8.13 7.39 8.21
Sewer:
Residential sewer customers 11,417 11,410 11,391 11,381 11,530
Commercial sewer customers 488 480 475 472 630
All other sewer customers 331 328 329 329 /
Average daily treatment (mg) 2.41 2.35 2.68 2.48 2.53
Notes:
(1) Because of County -wide interbranch loan program, this statistic is no longer tracked.
Source:
City of Poway
174
2014 2013 2012 2011 2010
1,285 1,522 1,418 1,317 1,192
6,426 6,770 7,020 7,063 7,804
1,069 1,038 1,123 1,145 1,334
4,099 3,846 3,638 3,811 3,691
2,899 2,687 2,474 2,863 1,606
1,504 1,345 1,237 1,176 1,144
8,221 8,349 5,981 6,126 6,580
55,652 59,389 59,897 53,249 61,214
93,951 75,000 96,000 104,367 125,977
709,823 782,288 693,783 765,704 638,494
282 156 161 152 148
299,038 188,561 201,968 207,968 290,877
4,379,695 3,928,425 4,563,496 4,369,160 4,369,503
175 644 1,323 571 193
12,674 12,509 12,523 12,439 12,492
645 529 464 496 514
not reported /
10.66 10.16 9.36 8.99 9.57
11,498 11,474 11,383 11,241 11,225
627 623 782 770 774
not reported /
2.73 2.86 3.01 3.27 3.15
175
City of Poway
Capital Assets Statistics
Last Ten Fiscal Years
Function
2019 2018 2017 2016 2015
Public Safety:
Number of fire stations
Number of sheriff stations
3
1
3 3 3 3
1 1 1 1
Public works:
Total number of streetlights 3,059 3,059 3,059 3,059 3,059
Signal controlled intersections 56 56 56 56 56
Health and welfare:
Senior center facilities 1 1 1 1 1
Culture and recreation:
Number of Libraries 1 1 1 1 1
Number of Performing Arts Centers 1 1 1 1 1
Number of Parks 19 19 19 19 19
Acres of developed parks 232 232 232 232 232
Number of reserves/preserves 2 2 2 2 2
Acres of reserves/preserves 2,400 2,400 2,400 2,400 2,400
Miles of trails 56 56 56 56 56
Highways and streets:
Miles of roadway 165 165 165 165 165
Water:
Miles of water lines 289 289 289 289 289
Water storage capacity (billion/gallons) 1.11 1.11 1.11 1.11 1.11
Sewer:
Miles of sewer lines 186 186 186 186 186
Miles of storm sewers 64 64 64 64 64
Source:
City of Poway
176
2014 2013 2012 2011 2010
3 3 3 3 3
1 1 1 1 1
3,059 3,059 3,073 3,073 3,045
56 55 55 55 55
1 1 1 1 1
1 1 1 1 1
19 19 19 19 18
232 232 232 232 232
2 2 2 2 2
2,400 2,400 2,400 2,400 2,400
56 56 56 56 56
165 165 165 165 165
289 289 289 289 253
1.11 1.11 1.11 1.11 1.11
186 186 186 186 175
64 64 64 64 64
177
This page intentionally left blank.
178