ACFR FY 2021-2022Mickey Cafagna Community Center
Photo: Pablo Mason/Jeff Kratz Architecture
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
CITY OF POWAY, CALIFORNIA
This page intentionally left blank.
.
City of Poway
Poway, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended
June 30, 2022
Prepared by:
Finance Department
This page intentionally left blank.
CITY OF POWAY
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
Table of Contents
Page
INTRODUCTORY SECTION
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 .................................................................................................................... 19
Statement of Activities ......................................................................................................................... 21
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet – Governmental Funds .............................................................................................. 26
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position ............................................................................................................................... 27
Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities ......................................... 29
Proprietary Fund Financial Statements:
Statement of Net Position ................................................................................................................. 32
Statement of Revenues, Expenses, and Changes in Net Position ..................................................... 33
Statement of Cash Flows ................................................................................................................... 34
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ................................................................................................. 38
Statement of Changes in Fiduciary Net Position ............................................................................... 39
Notes to the Basic Financial Statements .............................................................................................. 42
Required Supplementary Information:
Budgetary Information ............................................................................................................................ 93
Budgetary Comparison Schedule – General Fund ................................................................................... 94
Budgetary Comparison Schedule – Housing Authority Fund .................................................................. 95
Schedule of Changes in Net Pension Liability and Related Ratios, Last
10 Years – Miscellaneous Plan ............................................................................................................. 97
Schedule of Plan Contributions, Last 10 Years – Miscellaneous Plan ..................................................... 99
Schedule of the City’s Proportionate Share of the Plan’s Net Pension Liability
and Related Ratios, Last 10 Years – Safety Plan ................................................................................. 101
Schedule of Plan Contributions, Last 10 Years – Safety Plan ................................................................. 103
CITY OF POWAY
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
Table of Contents
(continued)
Page
Required Supplementary Information (continued):
Schedule of Changes in Net Pension Liability and Related Ratios, Last
10 Years – Retirement Enhancement Plan ......................................................................................... 105
Schedule of Plan Contributions, Last 10 Years – Retirement Enhancement Plan ................................. 107
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet ................................................................................................................... 113
Combining Statement of Revenues, Expenditures and Changes in Fund Balance ............................. 117
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Non-Major Special Revenue Funds:
Fire Protection ............................................................................................................................. 121
800 MHz Communication System ................................................................................................ 122
Gas Tax ......................................................................................................................................... 123
Drainage ....................................................................................................................................... 124
Miscellaneous Grants ................................................................................................................... 125
AB 939 Integrated Waste Management ...................................................................................... 126
Community Development Block Grant ........................................................................................ 127
Transportation Development Act ................................................................................................ 128
Proposition A................................................................................................................................ 129
SB 1186 Disabled Access Law ....................................................................................................... 130
Excess SAFE Reserve .................................................................................................................... 131
Regional Arterial Traffic Mitigation.............................................................................................. 132
Fire Protection Impact Fees ......................................................................................................... 133
BEGIN Program ............................................................................................................................ 134
Housing In-Lieu ............................................................................................................................ 135
Abandoned Vehicle Fees .............................................................................................................. 136
Habitat In-Lieu.............................................................................................................................. 137
Maintenance Districts .................................................................................................................. 138
Road Repair .................................................................................................................................. 139
Mary Patricia Ross Trust .............................................................................................................. 140
Non-Major Debt Service Fund:
City Debt Service .......................................................................................................................... 141
Non-Major Capital Projects Funds:
Park Improvement ....................................................................................................................... 142
Community Benefits .................................................................................................................... 143
Street Improvement .................................................................................................................... 144
Municipal Improvement Capital Projects Fund ........................................................................... 145
CITY OF POWAY
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
Table of Contents
(continued)
Page
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years ................................................................................. 149
Changes in Net Position – Last Ten Fiscal Years........................................................................................ 151
Fund Balances, Governmental Funds – Last Ten Fiscal Years ................................................................... 155
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years ................................................ 157
Assessed Value of Taxable Property – Last Ten Fiscal Years..................................................................... 159
Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ......................................................... 161
Principal Secured Property Taxpayers – Current and Nine Years Ago ...................................................... 162
General Property Tax Levies and Collections – Last Ten Fiscal Years ....................................................... 163
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years..................................................................... 164
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ....................................................... 165
Direct and Overlapping Debt as of June 30, 2022 .................................................................................... 166
Legal Debt Margin Information – Last Ten Fiscal Years ............................................................................ 167
Pledged Revenue Coverage – Last Ten Fiscal Years .................................................................................. 169
Demographic and Economic Statistics – Last Ten Calendar years ............................................................ 170
Full-Time-Equivalent City Employees by Function – Last Ten Fiscal Years ............................................... 171
Operating Indicators – Last Ten Fiscal Years ............................................................................................. 173
Capital Assets Statistics – Last Ten Fiscal Years ........................................................................................ 175
This page intentionally left blank.
Introductory Section
STEVE VAUS, Mayor
BARRY LEONARD, Deputy Mayor
PETER DE HOFF, Councilmember
CAYLIN FRANK, Councilmember
BRIAN PEPIN, Councilmember
CITY OF POWAY
City Hall Located at 13325 Civic Center Drive
Mailing Address: P.O. Box 789, Poway, California 92074-0789
www.poway.org
`
January 17, 2023
Honorable Mayor, Councilmembers and Residents of Poway,
It is with great pleasure to present the City of Poway’s Fiscal Year (FY) 2021-22 Annual Comprehensive
Financial Report (ACFR). 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. The ACFR includes the financial activities 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 ACFR 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. I assert that, to the best of my 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’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and
provides a narrative introduction, overview, and analysis of the basic financial statements. The 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 and 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.
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 just under
50,000. While there is a broad continuum of housing options, Poway consists of mostly single-family homes.
Poway’s median home value is over $900,000. The Poway Unified School District is a national leader in K-
12 education.
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 78 miles of riding, hiking, and biking trails.
Poway continues to be recognized as an exceptional place to live. Poway was named the 7th Safest City in
California in March 2022 by Safewise.com and is regularly recognized as having the lowest crime rates of
any City in the county. In 2021, Poway had an FBI crime index of 10.13 crimes per 1,000 residents. This low
crime rate can be attributed, in part, to the San Diego County Sheriff’s Department’s community
engagement and proactive law enforcement techniques.
Businesses in the City offer well-paying jobs. Some of the City’s top employers include Amazon, Delta
Design, Geico, General Atomics, Palomar Medical Center Poway, Poway Unified School District, and Sysco
Food Services. Poway has a labor force (the number of people who work or are available for work) of 25,300.
Based on California Employment Development Department’s November 2022 data, the current
unemployment rate is 2.4%, whereas San Diego’s current employment rate is 3.3% and the current state
unemployment rate is 4.1%.
MAJOR INITIATIVES
Several development projects were under construction in FY 2021-22 that will provide new housing and
commercial options for residents and support revenue growth opportunities for the City. The revised Poway
Road Specific Plan made possible for progress on projects that will reshape the “town center” portion of
Poway Road. Several residential buildings were under construction during FY 2021-22 including “Poway
Commons,” a planned development for 97 market-rate multi-family residential units and 44 affordable
senior housing units, including some retail. The 44 affordable senior units were completed and fully
occupied during FY 2021-22.
Affordable housing opportunities continued to move forward. Construction on the Apollo Apartments was
completed in January 2022. This is a 44-unit senior affordable housing development, with a veteran’s
preference for 10 units. The project is part of the Poway Commons development. After completion of an
RFP process, the City/ Housing Authority has identified a developer for an affordable rental project on a
site owned by the Poway Housing Authority targeting developmentally disabled adults and military
veterans. The Housing Authority will be entering into an Exclusive Negotiating Rights Agreement to prepare
a Development Agreement and the City will be reviewing the development entitlements.
Site grading and improvements began on a third mixed-use development proposal on Poway Road that will
include 212 multi-family residential condominium units, more than 11,000 square feet of commercial and
ii
restaurant space, and close to 10,000 square feet of quasi-public open space. During FY 2021-22 the City
Council approved a six-lot subdivision north of Espola Road and grading began on a previously approved 10
lot subdivision at the terminus of Larchmont Street.
After receiving voter approval in the November 2020 General Election, “The Farm in Poway” received
approval of a final tract map and grading permit, grading and home construction is underway. The project
is a 118-acre specific plan proposed to include 160 residential homes, as well as agricultural, recreational,
and retail uses to revitalize property that once operated as a country club and golf course.
A significant number of construction/tenant improvement projects were approved or finaled for Poway
businesses during FY 2021-2022. Building permits were issued and construction began on A-1 Self Storage,
which includes close to 80,000 square feet in the business park.
A façade remodel and tenant improvement projects were completed at Twin Peaks Plaza to make way for
the 44,686 square-foot Amazon Fresh Grocery Store. Creekside Plaza Shopping Center added 5,250 square
feet of restaurant/retail and two restaurants occupied the building. A 16,464 square-foot interior tenant
improvement permit was issued for Palomar Medical Center’s outpatient surgery facility. Additionally,
Pedder Hyundai is undergoing a façade remodel. The Honda dealership began construction of a new
inventory lot.
The City completed 26 capital improvement projects (CIPs) in FY 2021-22, including but not limited to Espola
Road Safety Improvements project, Exposed Sewer East of Martincoit, Buehler Reservoir Rehabilitation,
Carlson and Springvale Channel Rehabilitation project, (including replacement of the monument sign at the
Vehicle Maintenance Facility), the replacement of hazardous storage units at the City’s Household
Hazardous Waste Site and Vehicle Maintenance Facility, the annual painting of City facilities, and wood
repair and replacement at Old Poway Park and the Poway Sheriff Station.
A workshop was held in February 2022 to discuss the Adobe Ridge, Silver Ridge, and Ted Williams Parkway
groves. Council consensus was removal of the citrus trees at the Ted Williams Parkway Grove and re-
landscaping with native mix. The removal of 480 citrus trees at the Ted Williams Parkway Grove was
completed in June 2022 and cost $131,970. At the end of the Fiscal Year, hydroseeding was still being
coordinated by Public Works staff. Estimated cost savings related to water and maintenance services for
the Ted Williams Grove is $79,800 for Fiscal Year 2022-23.
Reinvesting in the City’s infrastructure remains a top priority. The City began the process of coordinating a
$70 million water infrastructure improvement program. The City Water Infrastructure Improvement
Program consists of the following components: the Clearwell Bypass Project; the Clearwell Replacement
Project, and the San Diego County Water Authority Treated Water Connection and Redundant Pipeline
Project. In fiscal year 2022, the City began construction of the Clearwell Bypass Project, which includes
bypass pipelines, a pump station, a pressure regulating station and two temporary 1.4 million gallon
bypass tanks. Completion of the Clearwell Bypass Project is expected in Fiscal Year 2022-23, as well as
moving into the next phase of the Water Infrastructure Improvement Program. The goal of these
improvements is to increase the sustainability and resiliency of the water system. Water Revenue Bonds,
Series 2021A were issued in November 2021 for the Clearwell Bypass improvements with an all-in interest
rate of 2.86 percent. Because favorable market conditions allowed the bonds to be issued at a premium
(i.e., more funds were received than bonds issued) a total of $14.9 million in construction funds were
realized though only $12.9 million in bonds were issued.
Due to nationwide supply constraints and inflationary operational and transportation costs, chemical
iii
suppliers have increased prices for water treatment chemicals necessary to treat the City’s water to state
and federal standards. During Fiscal Year 2021-22, chemical suppliers sent several notices for cost-increases
and product shortages, causing increased costs to water treatment.
Poway was awarded $1.4 million from the Federal Emergency Management Agency (FEMA) for its
competitive Hazardous Mitigation Grant Program (HMGP) in FY 2020-21. The project seeks to reduce fire
loads along Twin Peaks and Espola Roads, as well as an open space area, to mitigate fire risk. Phase 1 of the
Hazardous Mitigation Grant Program (HMGP) project was completed in April 2022. Phase I included
inventory and risk assessment, outreach, planning, and environmental permitting. Expenditures for Phase
1 of the project totaled approximately $115,130. Poway received $77,712 in reimbursement for this phase
of the project. Phase 2 of the project is currently under FEMA review.
Poway Municipal Code was updated in November 2021 to include mandatory organic waste collection from
residential and commercial accounts, requirements for haulers servicing generators in the City,
enforcement and penalty mechanisms, and requirements for commercial edible food generators and food
recovery organizations. Poway received $69,995 in state grant funding to assist with the implementation
of state-mandated goals to reduce greenhouse gas emissions as determined by California State Senate Bill
1383.
The fire department purchased two paramedic ambulances for $494,720 and will replace two of the aging
reserve ambulances currently in the fleet. This allows the City to maintain its scheduled service life of the
City’s paramedic ambulance fleet to ensure emergency response readiness, minimizing the impact of
scheduled maintenance activities and unplanned repairs. A new ladder truck was also purchased for
$1,650,422.58. The purchase of this ladder truck was expedited on May 1, 2022, to avoid a 7% cost increase,
which avoided a cost increase of $110,729.42. It is anticipated that it will take approximately 2 years for
the ladder truck to be manufactured.
Firefighter health and wellness is a priority for the City. At the cost of $32,500, the City can now address
the cumulative physical and mental effects on fire department personnel, and to develop a comprehensive
Health and Wellness program. The purpose of this program is to enhance existing employee services and
strengthen the resiliency of firefighters so their mental, physical, and emotional capabilities will withstand
stressors associated with the profession.
Pension Obligation Bonds (POBs) were identified as a potential cost savings measure due to historically
low interest rates. POBs afford the City an option to “refinance" some or all of its unfunded accrued
liability (UAL) with CalPERS that has an effective interest rate of close to 7 percent with taxable bonds at a
lower market rate. The overall strategy of POBs is to achieve interest rate savings between almost 7
percent and market rate bond issuance. To help Council make an informed decision staff and its expert
consultants provided the potential risks and benefits of POBs, a financial analysis detailing potential
savings the City might realize, and the statistical likelihood the City would be better off for having issued
POBs than not. After careful consideration, the Council authorized the issuance of POBs in fall of 2021.
The POBs are projected to reduce operating expenditures in the General Fund, Water Fund, Wastewater
Fund, and Capital Replacement Fund by approximately $1.4 million during Fiscal Year 2022-23.
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
iv
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 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 auditors’ 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 Poway for its FY 2020-2021 ACFR. To be
awarded a Certificate of Achievement, the report must be easy to read, efficiently organized, and satisfy
both generally accepted accounting principles and applicable program requirements. A Certificate of
Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, I believe
that the current report continues to meet the program requirements. The City is submitting it to the GFOA
to determine its eligibility for another 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, Council
Members, and City Manager’s Office 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 Poway employees as evidenced by
the long list of accomplishments and initiatives included in this letter of transmittal.
v
Respectfully Submitted,
_________________________________
Brad Rosen
Acting Finance Director
vi
CITY OF POWAY
Principal Officers
June 30, 2022
CITY COUNCIL
MAYOR
Steve Vaus
DEPUTY MAYOR
John Mullin
COUNCIL MEMBERS
Dave Grosch
Caylin Frank
Barry Leonard
APPOINTED OFFICIALS
CITY MANAGER
Chris Hazeltine
CITY ATTORNEY
Alan Fenstermacher
ADMINISTRATIVE PERSONNEL
ASSISTANT CITY MANAGER
Wendy Kaserman
CITY CLERK
Carrie Gallagher
DIRECTOR OF FINANCE
& TREASURER
Aaron Beanan
DIRECTOR OF HUMAN RESOURCES
& RISK MANAGEMENT
Jodene Dunphy
DIRECTOR OF COMMUNITY SERVICES
Audrey Denham
DIRECTOR OF DEVELOPMENT SERVICES
Robert Manis
DIRECTOR OF PUBLIC WORKS
Eric Heidemann
FIRE CHIEF
Jeff Chumbley
vii
CITY OF POWAY
CITY ORGANIZATION
Residents
Residents
City Council /
Planning Commission /
Housing Authority
City Council /
Planning Commission /
Housing Authority
City Attorney
City Attorney
City Manager
City Manager
City Clerk City Clerk
Economic
Development
Economic
Development
Finance
Finance
Human Resources &
Risk Management
Human Resources &
Risk Management
Community
Services
Community
Services
Development
Services
Development
Services
Public Works Public Works Fire Fire
Finance
Finance
Customer Services
Customer Services
Information Technology
Information Technology
Human Resources
Human Resources
Risk Management
Risk Management
Recreation
Recreation
Lake Poway Lake Poway
Aquatics Aquatics
Performing Arts
Center
Performing Arts
Center
Old Poway Park
Old Poway Park
Library
Library
Interpretive Services
Interpretive Services
Community Park
Community Park
Land Development
Land Development
Planning Planning
Building & Safety
Inspection
Building & Safety
Inspection
Housing
Housing
EngineeringInspection
EngineeringInspection
Capital Projects
Capital Projects
Code Compliance Code Compliance
Traffic
Engineering
Traffic
Engineering
Maintenance Operations
Maintenance Operations
Streets
Maintenance
Streets
Maintenance
Water Transmission
& Distribution
Water Transmission
& Distribution
Wastewater
Collection
Wastewater
Collection
Storm Water & Flood Control
Storm Water & Flood Control
Utility Systems
Operations &
Maintenance
Utility Systems
Operations &
Maintenance
Reclaimed Water Supply & Storage
Reclaimed Water Supply & Storage
Facilities
Maintenance
Facilities
Maintenance
Vehicle &
Equipment Maintenance
Vehicle &
Equipment Maintenance
Parks, Trails & Landscape
Maintenance
Parks, Trails & Landscape
Maintenance
Special Landscape
Districts
Special Landscape
Districts
Fire Prevention
Fire Prevention
Fire Suppression Fire Suppression
Law Enforcement Law Enforcement
Assistant
City Manager
Assistant
City Manager
viii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Poway
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
ix
Financial Section
This page intentionally left blank.
Independent Auditor’s Report
City Council
City of Poway
Poway, California
Report on the Audit of the Financial Statements
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of City of Poway
(City), California, as of and for the year June 30, 2022, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as
listed in the table of contents.
In our opinion, the accompanying financial statements 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 as of June 30, 2022, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America (GAAS) and the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Emphasis of Matter
As described further in Note 18 to the financial statements, during the year ended June 30
2022, the City implemented Government Accounting Standard (GASB) No. 87: Lease
Accounting. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of the
financial statements in accordance with accounting principles generally accepted in the
United States of America, and for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
1
In preparing the financial statements, management is required to evaluate whether there
are conditions or events, considered in the aggregate, that raise substantial doubt about the
City’s ability to continue as a going concern for one year after the date that the financial
statements are issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinions. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit
conducted in accordance with GAAS will always detect a material misstatement when it
exists. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the
audit.
Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive
to those risks. Such procedures include examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the City’s internal control.
Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the
overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit, significant audit findings, and
certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis, Budgetary Comparison 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.
2
Such information is the responsibility of management and, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements
that collectively comprise the City’s basic financial statements. The combining and individual
nonmajor fund financial statements and budget to actual schedules are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor 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 nonmajor 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.
Other Information
Management is responsible for the other information included in the Annual Comprehensive
Financial Report. The other information comprises the introductory section and statistical
section but does not include the financial statements and our auditor's report thereon. Our
opinions on the financial statements do not cover the other information, and we do not
express an opinion or any form of assurance thereon. In connection with our audit of the
financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the financial
statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
3
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated
January 17, 2023 on our consideration of the City’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is solely to describe
the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of internal control
over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s
internal control over financial reporting and compliance.
Irvine, California
January 17, 2023
4
5
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, 2022. 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 assets and deferred outflows of resources of City exceeded its liabilities and deferred inflows of
resources at the close of the currently fiscal year by $237.7 million (net position) an increase of $10.3
million or 4.6%.
• The unrestricted net position, which represents the amounts available to meet the City’s ongoing
obligations to citizens and creditors, was $72.6 million, which increased by $16.6 million or 29.8%, in
comparison to prior fiscal year. The increase was a combination of the governmental activities
increased by $10.3 million and the business-type activities increase by $6.3 million.
• At the close of the current fiscal year, the City’s governmental funds reported an increase in combined
fund balance of $7.7 million in comparison with the prior fiscal year, to $93.8 million. Of this amount,
$15.8 million is available for spending at the government’s discretion (unassigned fund balance).
• At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned,
and unassigned components of fund balance) for the General Fund was $49 million. Of this amount,
$15.8 million is unassigned.
OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
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 financial 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.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
City’s finances, in a manner similar to a private-sector business.
The Statement of Net Position presents financial information on all the City’s assets, liabilities, and
deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases
or decreases in net position may serve as a useful indicator of whether the financial position of the City 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
6
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).
Both 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 tax, motor vehicle license fees, and franchise fees. Whereas the business-type
activities include the water and sewer systems, which the City charges fees 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 include two blended 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 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, which 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 foreseeable 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.
7
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 Custodial 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.
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.
Analysis of net position
The net position of the primary government increased by $10 million in FY 2021-22. The total assets
increased by $19 million and total liabilities increased by $39 million. Deferred outflows of resources
increased $45 million and deferred inflows of resources increased $14 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 $12 million or 7% from $167 million to $179
million. The following is an explanation of the significant changes between fiscal years as shown in Table
1 above:
2022 2021 2022 2021 2022 2021
Assets:
Current and other assets 117,462$ 112,991 51,469 42,085 168,931 155,076
Capital assets 123,075 124,889 37,156 30,061 160,231 154,950
Total assets 240,537 237,880 88,625 72,146 329,162 310,026
Deferred Outflows 47,202 9,375 8,215 1,336 55,417 10,711
Liabilities:
Long-term debt outstanding 46,497 13,585 25,210 320 71,707 13,905
Other liabilities 12,592 15,394 4,635 3,577 17,227 18,971
Net pension liability 33,409 48,183 6,356 8,512 39,765 56,695
Total liabilities 92,498 77,162 36,201 12,409 128,699 89,571
Deferred Inflows 15,969 3,078 2,219 741 18,188 3,819
Net position:
Net investment in capital assets 113,446 114,891 21,736 30,061 135,182 144,952
Restricted 30,145 26,452 - - 30,145 26,452
Unrestricted 35,681 25,672 36,684 30,271 72,365 55,943
Total net position 179,272$ 167,015 58,420 60,332 237,692 227,347
(in thousands)
Total Primary
Government
Summary of Net Position
Table 1
Governmental Business-Type
Activities Activities
8
• Current and other assets increased $4.4 million or 4% principally due to an increase in cash and
investments as part of normal operations.
• Capital assets decreased $1.8 million or 1.5% (net of depreciation and additions) as detailed in Table
3. The decrease was mainly a result of changing capitalization threshold to $10,000 in fiscal year 2021
resulting in removal of assets worth less than $10,000 from capitalization schedules.
• Other liabilities decreased by $2.8 million or 18% mainly because the City begin recording developer
deposits in the General Fund beginning in Fiscal Year 2021 because of the implementation of
Governmental Accounting Standards Board Statement No. 84 which caused an increase in Fiscal Year
2021.
• Pension related items including Deferred Outflows, Net Pension Liability, and Deferred Inflows, had a
net decrease of $39.7 million or 95%.
• Net Investment in capital assets decreased by $1.7 million or 1.5% mainly due to changing
capitalization threshold to $10,000 in fiscal year 2021 resulting in removal of assets worth less than
$10,000 from capitalization schedules.
• Restricted net position increased by $3.7 million or 14%, primarily due to street maintenance.
• 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, increased by $10.3
million or 40% primarily due to conservative financial practices the City implemented due to Covid-19
pandemic.
The cost of all governmental activities this year was $59.4 million as shown on Tables 2 and 2.1 below.
Total revenue was $71.4 million, which consisted of $14.2 million from those who directly benefited from
the programs, $12.4 million from grant and contribution subsidies received from other governmental
organizations for both capital and operating activities, and $44.6 million was financed through general
revenues. Items of significance within Table 2 are described after the table.
9
10
Fiscal Year 2022
Governmental Activities
(Graphic representation of Table 2 in percentages)
Revenues
Total revenues increased by $8.3 million or 13%. The following is an explanation of the changes between
fiscal years as shown in Table 2 above:
• The total program revenues increased by $7.8 million or 41%, mainly due to a one-time $6 million
ARPA Act relief funds received as a result of COVID-19 pandemic.
• The total general revenues had no significant change compared to prior year. Sales tax increased by
$2 million or 12.6%. The other taxes increased by $.04 million or 36%. This increase included Transient
Occupancy Tax which increased in the year following COVID-19 pandemic. There was a slight increase
of $1.2 million or 4.8% in property taxes mainly due to increase in cost of real estate. The investment
and miscellaneous revenues decreased by $3.1 million or 170% due to declining interest rate
environment as a result of COVID-19.
Expenses
Total expenses decreased by $5.5 million or 8.5% mainly due to the conservative financial practices the
City implemented as a result of COVID-19.
11
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.
12
Total resources available during the year to finance governmental activities were $238.8 million, which
consisted of net position on July 1, 2021, of $167 million, program revenues of $26.7 million, general
revenues of $44.7 million, and transfers of $.4 million. Total governmental expenditures during the year
were $59 million. The governmental net position resulted in a $12.2 million increase, ended with $179
million on June 30, 2022.
Business-Type Activities
The net position of business-type activities decreased by $1.9 million or 3.2% from $60.3 million to $58.4
million. As shown in Table 2.2 below, program revenues were $41.8 million, while the cost of providing
all business-type activities this year was $44.5 million.
Water Activities
The water total operating revenues increased by almost $1 million or 3.3% mainly due to a 10% rate
increase in fiscal year 2022 which was approved by the City Council in November of 2021. The water total
operating expenses were increased by $2.7 million or 10% mainly due to increase in cost of imported
water from San Diego County Water Authority.
Sewer Activities
The sewer total operating revenues increased by $2.5 million or 27 % due to increase in sewer rate
increases and the sewer total operating expenses increased by $3 million or 29% mainly as a result of
increase in maintenance and operations costs.
13
FUND HIGHLIGHTS
General Fund
Revenue
Actual revenues compared favorably to the final budget, resulted in a $5.3 million positive variance
(excluding other financing sources). The major variance was in Intergovernmental revenue. Actual
revenue in this category was $3.4 million higher than budgeted primarily due to receiving $6 million in
ARPA grants. Revenue associated with Use and Loss of Money and Property was less than budget by $3.7
million mainly due to COVID-19 related economic uncertainties and market volatility on interest rate and
investments.
Expenditures
The final appropriations for the City’s General Fund expenditures at year-end were $10.4 million more
than actual expenditures (excluding other financing uses) mainly due to the City’s prudent financial
decisions.
14
Housing Authority Special Revenue Fund
The City of Poway created its Housing Authority during FY 2010-11 and transferred all of the Poway
Redevelopment Agency’s housing assets to the Housing Authority. As a result of California Assembly Bill
(AB) X1 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, California 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 revenue
exceeded expenditure by $1.6 million for operations at the end of June 30, 2022. The Housing Authority’s
fund balance increased by $1.6 million at June 30, 2022 primarily due to the residual loan repayment of
$1.2 million from a non-profit partner.
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. 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, which was created to oversee the Successor Agency, 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.
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, improvements, infrastructure, machineries, equipment, and construction-
in-progress. Total capital assets, net of depreciations, had a decrease of $8.9 million or 5.4% mainly due
to capitalization threshold increase of $10,000 which was implemented in fiscal year 2021. (See Table 3
below & Note 6 to the Basic Financial Statements.)
15
Debt
At year-end, the City had $43.6 million in governmental debt, $24.5 million in business-type debt, and
$127.3 million in fiduciary debt (Table 4). The overall increase in bond balances was mainly due to
issuance of Pension Obligation and Water Revenue Series 2021A bond’ scheduled principal payments and
premium/discount amortizations. (See Table 4 below & Note 7 to the Basic Financial Statements.)
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City Budget for FY2022-23 is still influenced by the COVID-19 global pandemic. On March 13, 2020,
the City declared an emergency in response to the COVID-19 global pandemic. While this emergency and
the global pandemic are still ongoing and continue to impact the operations of the City, the impacts have
decreased. Pandemic related expenditures are projected to decline significantly in FY2022-23 while most
revenues are projected to return to pre-pandemic levels and trends.
For FY2022-23, the City’s budget looks significantly different than last year because of City Council’s
leadership and support of staff’s work over the year. The following are a few of the major initiatives that
16
were pursued to strengthen the long-term financial security of the City. Each one of these long-term
financial strategies will positively impact the General Fund in FY2022-23.
With support from City Council, Staff negotiated six-year labor agreements with the California
Teamsters Local 911, Poway Firefighters’ Association, and Management-Confidential groups
during calendar year 2021 to ensure financial flexibility and service delivery.
Pension Obligation Bonds (POBs) were identified as a potential cost savings measure due to
historically low interest rates. POBs are projected to reduce operating expenditures in the
General Fund, Water Fund, Wastewater Fund, and Capital Replacement Fund by approximately
$1.4 million during FY2022-23.
The benefit of the City’s partnership with the County of San Diego for law enforcement is twofold:
financial flexibility as it relates to General Fund and exceptional service and safety for the
residents of Poway. After extensive negotiations with the County of San Diego a new five-year
contract was adopted by the City in spring 2022. The negotiated annual increase will be slightly
more than $100 thousand in FY2022-23 compared to prior years where the increase was in excess
of $500 thousand.
Staff also conducted a fee study for ambulance transport services as a fee study had not been
conducted since 2007. The updated ambulance fees are projected to increase General Fund
revenues by approximately $1.8 million during FY2022-23.
Aside from the General Fund, Staff also continues to pursue the largest set of capital projects in the City’s
history with the Water Infrastructure Improvement Program (“Water Program”) during FY2022-23. The
Water Program is comprised of the Clearwell Bypass, the Clearwell Replacement, and the San Diego
County Water Authority (SDCWA) Treated Water Connection projects. The City’s CIP remains very active
for FY2022-23 with a total of 49 existing and proposed projects totaling almost $80 million in
appropriations. Additionally, the City will invest almost $4.2 million in maintaining and improving Poway’s
streets which is an important priority for our community.
CONTACTING THE CITY’S FISCAL MANAGEMENT
This financial report is designed to provide the City’s citizens, taxpayers, customers, investors, and
creditors with a general overview of the City’s finances and to show the City’s fiduciary responsibility for
the funds it receives. If you have questions about this report or need additional financial information,
contact the City’s Finance Department, at the City of Poway, 13325 Civic Center Drive, Poway, California
92064 or go online at http://www.poway.org.
BASIC FINANCIAL STATEMENTS
17
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
18
Governmental
Activities
Business-Type
Activities Total
ASSETS
Current assets:
Cash and investments (note 2)93,985,775$ 38,174,084 132,159,859
Cash and investments with fiscal agents (note 2)596,988 - 596,988
Receivables:
Taxes 3,746,642 - 3,746,642
Accounts 1,649,902 8,127,977 9,777,879
Interest 1,108,229 - 1,108,229
Leases (note 3) 300,722 - 300,722
Internal balances (51,030) 51,030 -
Due from other governments 286,268 - 286,268
Prepaid items 1,655,245 34,285 1,689,530
Land held for resale 177,000 - 177,000
Inventories 157,040 3,791,271 3,948,311
Total current assets 103,612,781 50,178,647 153,791,428
Noncurrent assets:
Leases receivable (note 3)112,371 - 112,371
Notes receivable (note 4)12,883,251 - 12,883,251
Loans to the Successor Agency to the
Poway Redevelopment Agency 853,828 1,284,881 2,138,709
Loans to other governments - 5,556 5,556
Capital assets:
Nondepreciable assets (note 6)38,867,195 11,671,828 50,539,023
Depreciable assets, net (note 6)84,207,830 25,484,603 109,692,433
Total capital assets 123,075,025 37,156,431 160,231,456
Total noncurrent assets 136,924,475 38,446,868 175,371,343
Total assets 240,537,256 88,625,515 329,162,771
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding of debt 125,296 - 125,296
Pension related (note 8)47,076,588 8,215,236 55,291,824
Total deferred outflows of resources 47,201,884 8,215,236 55,417,120
(Continued)
CITY OF POWAY
Statement of Net Position
June 30, 2022
Primary Government
See accompanying notes to the basic financial statements
19
Governmental
Activities
Business-Type
Activities Total
LIABILITIES
Current liabilities:
Accounts payable 6,546,052 4,274,936 10,820,988
Accrued liabilities 1,290,873 209,957 1,500,830
Accrued interest payable 557,854 - 557,854
Due to other funds - - -
Deposits 4,098,251 102,935 4,201,186
Unearned revenue 99,288 47,118 146,406
Long-term debt - due within one year (note 7)2,871,333 602,239 3,473,572
Total current liabilities 15,463,651 5,237,185 20,700,836
Noncurrent liabilities:
Long-term debt - due in more than one year (note 7)43,625,260 24,608,224 68,233,484
Net pension liability (note 8)33,408,967 6,355,565 39,764,532
Total noncurrent liabilities 77,034,227 30,963,789 107,998,016
Total liabilities 92,497,878 36,200,974 128,698,852
DEFERRED INFLOWS OF RESOURCES
Leases (note 3)292,704 - 292,704
Pension related (note 8)15,676,457 2,219,430 17,895,887
Total deferred inflows of resources 15,969,161 2,219,430 18,188,591
NET POSITION
Net investment in capital assets 113,445,694 21,736,424 135,182,118
Restricted for:
Drainage 4,571,771 - 4,571,771
Fire protection 200,906 - 200,906
Grants 365,630 - 365,630
Housing 5,860,124 - 5,860,124
Maintenance districts 8,813,245 - 8,813,245
Other purposes 1,875,170 - 1,875,170
Parks and recreation 1,881,426 - 1,881,426
Streets 5,303,543 - 5,303,543
Transportation 1,272,920 - 1,272,920
Total restricted 30,144,735 - 30,144,735
Unrestricted 35,681,672 36,683,923 72,365,595
Total net position 179,272,101$ 58,420,347 237,692,448
CITY OF POWAY
Statement of Net Position
June 30, 2022
Primary Government
(Continued)
See accompanying notes to the basic financial statements
20
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants
Primary government:
Governmental activities:
General government 7,194,352$ 1,844,709 6,019,581 -
Public safety 26,534,269 2,480,786 586,144 -
Public works 9,817,864 3,088,137 3,290,726 -
Development services 7,791,058 2,880,318 362,373 -
Community services 7,465,888 3,965,132 1,703,223 471,112
Interest and fiscal charges 670,976 - - -
Total governmental activities 59,474,407 14,259,082 11,962,047 471,112
Business-type activities:
Water 30,924,172 29,690,399 123,420 -
Sewer 13,642,182 11,982,222 27,894 -
Total business-type activities 44,566,354 41,672,621 151,314 -
Total primary government 104,040,761$ 55,931,703 12,113,361 471,112
`
Program Revenues
CITY OF POWAY
Statement of Activities
Year Ended June 30, 2022
See accompanying notes to the basic financial statements
21
Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:
Governmental activities:
General government 669,938$ - 669,938
Public safety (23,467,339) - (23,467,339)
Public works (3,439,001) - (3,439,001)
Development services (4,548,367) - (4,548,367)
Community services (1,326,421) - (1,326,421)
Interest and fiscal charges (670,976) - (670,976)
Total governmental activities (32,782,166) - (32,782,166)
Business-type activities:
Water - (1,110,353) (1,110,353)
Sewer - (1,632,066) (1,632,066)
Total business-type activities - (2,742,419) (2,742,419)
Total primary government (32,782,166) (2,742,419) (35,524,585)
General revenues:
Taxes:
Property taxes 26,360,676 - 26,360,676
Sales tax 17,959,219 - 17,959,219
Transient occupancy taxes 753,932 - 753,932
Other taxes 890,406 - 890,406
Total taxes 45,964,233 - 45,964,233
Investment earnings (loss) (2,205,471)136,733 (2,068,738)
Loss on sale of assets (531,796)(63,380) (595,176)
Miscellaneous 1,457,229 1,112,169 2,569,398
Transfers 354,562 (354,562) -
Total general revenues and transfers 45,038,757 830,960 45,869,717
Change in net position 12,256,591 (1,911,459) 10,345,132
Net position, beginning of year 167,015,510 60,331,806 227,347,316
Net position, end of year 179,272,101$ 58,420,347 237,692,448
Changes in Net Position
Net (Expense) Revenue and
See accompanying notes to the basic financial statements
22
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
23
This page intentionally left blank.
24
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
25
Special Revenue
Fund Total
Housing Non-major Total
General Authority Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments 53,764,919$ 5,201,162 25,064,105 84,030,186
Cash and investments with
fiscal agents - - 596,988 596,988
Receivables:
Taxes 3,746,642 - - 3,746,642
Notes 12,883,251 - - 12,883,251
Accounts 1,593,612 10,290 46,000 1,649,902
Interest 958,186 - 150,043 1,108,229
Leases (note 3) 413,093 - - 413,093
Due from other funds (note 5)296,241 - - 296,241
Due from other governments 58,089 - 228,179 286,268
Prepaid items 521,204 - - 521,204
Land held for resale 177,000 - - 177,000
Inventories, at cost 157,040 - - 157,040
Advances to fiduciary funds (note 5)- 427,743 426,085 853,828
Total assets 74,569,277$ 5,639,195 26,511,400 106,719,872
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable 5,806,013$ 4,057 583,201 6,393,271
Accrued liabilities 1,232,453 - 54,088 1,286,541
Due to other funds (note 5)240,333 - 486,158 726,491
Deposits payable 4,007,739 - 90,512 4,098,251
Unearned revenue 56,347 14,736 28,205 99,288
Total liabilities 11,342,885 18,793 1,242,164 12,603,842
Deferred inflows of resources:
Leases (note 3) 292,704 - - 292,704
Unavailable revenue 3,975 - - 3,975
Total deferred inflows
of resources 296,679 - - 296,679
FUND BALANCES
Nonspendable 13,738,495 - - 13,738,495
Restricted - 5,620,402 25,323,653 30,944,055
Committed 20,441,896 - - 20,441,896
Assigned 12,851,725 - - 12,851,725
Unassigned 15,897,597 - (54,417) 15,843,180
Total fund balances 62,929,713 5,620,402 25,269,236 93,819,351
Total liabilities, deferred
inflows of resources and
fund balances 74,569,277$ 5,639,195 26,511,400 106,719,872
CITY OF POWAY
Balance Sheet
Governmental Funds
June 30, 2022
See accompanying notes to the basic financial statements
26
Total Fund Balances - Total Governmental Funds 93,819,351$
Amounts reported for governmental activities in the Statement of Net
Position were different because:
resources and, therefore, were not reported in the funds.
Non-depreciable 38,867,195$
Depreciable, net of accumulated depreciation 84,207,830 123,075,025
on the Government-Wide Statement of Net Position.125,296
reported in the governmental funds:
Pension related deferred outflows of resources (net of $625,173 reported
in Internal Service Fund)46,451,415
Pension related deferred inflows of resources (net of $164,737 reported in
Internal Service Fund)(15,511,720) 30,939,695
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 (net of $5,478 reported in Internal Service Fund)(1,291,307)
Compensated absences (net of $26,815 reported in Internal Service Fund)(1,547,733)
Long-term liabilities - due in more than one year
Long-term debt (net of $722,017 reported in Internal Service Fund)(42,509,607)
Pension related (net of $487,042 reported in Internal Service Fund)(32,921,925)
Compensated absences (net of $6,703 reported in Internal Service Fund)(386,933) (78,657,505)
Interest payable on long-term debt did not require current financial resources.
Funds Balance Sheet.(549,220)
Statements.3,975
The internal service funds was used by management to charge the costs of certain
Statement of Net Position.10,515,484
Net position of governmental activities 179,272,101$
Therefore, interest payable was not reported as a liability in the Governmental
activities to individual funds.The assets and liabilities of the internal service
funds were included in governmental activities in the Government-Wide
resulting from activities in which revenues were earned but funds were not
available were recognized as revenues in the Government-Wide Financial
Unavailable revenues recorded in governmental fund financial statements
CITY OF POWAY
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Position
June 30, 2022
Deferred outflows and inflows of resources related to pensions have not been
Capital assets used in governmental activities were not current financial
Deferred losses on refunding of debt did not require current financial
resources but were deferred and subject to capitalization and amortization
See accompanying notes to the basic financial statements
27
Special Revenue
Fund Total
Housing Non-major Total
General Authority Governmental Governmental
Fund Fund Funds Funds
REVENUES
Taxes 43,034,316$ - 5,823,796 48,858,112
Licenses and permits 2,140,086 - - 2,140,086
Intergovernmental 6,716,066 - 798,785 7,514,851
Charges for services 6,082,050 19,969 - 6,102,019
Fines and forfeitures 121,691 - - 121,691
Use (loss) of money and property (2,355,816) 35,380 372,678 (1,947,758)
Developer fees 3,765,021 - 1,024,967 4,789,988
Assessments levied - - 2,031,459 2,031,459
Other revenues 436,195 1,687,490 273,799 2,397,484
Total revenues 59,939,609 1,742,839 10,325,484 72,007,932
EXPENDITURES
Current:
General government 14,382,677 9,925 - 14,392,602
Public safety 41,401,577 - 26 41,401,603
Public works 9,042,012 - 4,584,577 13,626,589
Development services 12,560,103 73,974 - 12,634,077
Community services 10,053,029 - - 10,053,029
Capital outlay 2,855,448 - 2,622,313 5,477,761
Debt service:
Principal - - 989,498 989,498
Interest and fiscal charges - - 298,373 298,373
Issuance costs 361,947 - - 361,947
Total expenditures 90,656,793 83,899 8,494,787 99,235,479
Excess (deficiency) of revenues
over (under) expenditures (30,717,184) 1,658,940 1,830,697 (27,227,547)
OTHER FINANCING SOURCES
(USES)
Issuance of debt 33,263,175 - - 33,263,175
Transfers in (note 5)2,164,599 - 1,358,136 3,522,735
Transfers out (note 5)(1,020,465) - (867,773) (1,888,238)
Total other financing
sources (uses)34,407,309 - 490,363 34,897,672
Net change in fund balance 3,690,125 1,658,940 2,321,060 7,670,125
Fund balances, beginning of year 59,239,588 3,961,462 22,948,176 86,149,226
Fund balances, end of year 62,929,713$ 5,620,402 25,269,236 93,819,351
CITY OF POWAY
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2022
See accompanying notes to the basic financial statements
28
Net change in fund balances - Total Governmental Funds 7,670,125$
different because:
Capital asset expenditures 4,142,995$
Depreciation expense (5,425,240)
Disposition of capital assets (531,796) (1,814,041)
Principal payments on long-term debt 989,498
Proceeds from issuance of Pension Obligation Bonds (33,263,175)
Changes in pension related items 38,729,789 6,456,112
Change in compensated absences (net of $586 reported in Internal Service Fund)69,613
Change in interest expense on long term debt (381,207)
Amortization of deferred loss on bond refunding (11,933)
Amortization of bond premium 2005 Certificates of Participation 2,093
Amortization of bond premium 2012 Certificates of Participation 15,145 (306,289)
(295,203)
545,887
Change in net position of governmental activities 12,256,591$
Some expenses reported in the statement of activities do not require the use of
governmental funds.
Amounts reported for governmental activities in the Statement of Activities were
service fund was reported with governmental activities.
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 fleet management,to individual funds.The net revenue of the internal
to the Statement of Activities
CITY OF POWAY
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of Governmental Funds
Year ended June 30, 2022
Government-Wide Statement of Activities,the cost of those assets will be
allocated over their estimated useful lives as depreciation expense.
Governmental funds report capital outlay as expenditures.However,in the
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.
The issuance of long-term debt provides current financial resources to governmental
current financial resources and,therefore,are not reported as expenditures in
See accompanying notes to the basic financial statements
29
This page intentionally left blank.
30
PROPRIETARY FUND
FINANCIAL STATEMENTS
31
Governmental
Activities -
Internal Service
Water Sewer Total Fund
ASSETS
Current assets:
Cash and investments 22,665,421$ 15,508,663 38,174,084 9,955,589
Receivables:
Accounts 5,302,200 2,825,777 8,127,977 -
Inventories 3,746,944 44,327 3,791,271 -
Due from other governments 5,556 - 5,556 -
Prepaid expenses 34,285 - 34,285 1,134,041
Due from other funds (note 5)36,413 14,617 51,030 379,220
Total current assets 31,790,819 18,393,384 50,184,203 11,468,850
Noncurrent assets:
Advances to the Successor Agency to the
Poway Redevelopment Agency (note 5)895,209 389,672 1,284,881 -
Capital assets:
Nondepreciable (note 6)11,595,031 76,797 11,671,828 -
Depreciable (note 6)63,126,254 36,338,624 99,464,878 -
Less accumulated depreciation (note 6)(45,740,103) (28,240,172) (73,980,275) -
Total net capital assets 28,981,182 8,175,249 37,156,431 -
Total noncurrent assets 29,876,391 8,564,921 38,441,312 -
Total assets 61,667,210 26,958,305 88,625,515 11,468,850
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 7,118,419 1,096,817 8,215,236 625,173
LIABILITIES
Current liabilities:
Accounts payable 4,241,911 33,025 4,274,936 152,781
Accrued liabilities 180,680 29,277 209,957 12,966
Deposits 102,935 - 102,935 -
Unearned revenue 33,044 14,074 47,118 -
Bonds payable, due within one year (note 7)303,888 10,164 314,052 5,478
Compensated absences due within one year (note 7)237,070 51,117 288,187 26,815
Total current liabilities 5,099,528 137,657 5,237,185 198,040
Noncurrent liabilities:
Bonds payable (note 7)23,196,531 1,339,646 24,536,177 722,017
Compensated absences (note 7)59,266 12,781 72,047 6,703
Net pension liability 5,513,777 841,788 6,355,565 487,042
Total noncurrent liabilities 28,769,574 2,194,215 30,963,789 1,215,762
Total liabilities 33,869,102 2,331,872 36,200,974 1,413,802
DEFERRED INFLOWS OF RESOURCES
Pension related items 1,914,835 304,595 2,219,430 164,737
NET POSITION
Net investment in capital assets 13,651,370 8,161,464 21,812,834 -
Unrestricted 19,350,322 17,257,191 36,607,513 10,515,484
Total net position 33,001,692$ 25,418,655 58,420,347 10,515,484
CITY OF POWAY
Statement of Net Position
Proprietary Funds
June 30, 2022
See accompanying notes to the basic financial statements
32
Governmental
Activities -
Internal Service
Water Sewer Total Fund
OPERATING REVENUES
Charges for services 29,243,681$ 9,147,484 38,391,165 3,524,616
Connection fees 342,321 1,717,650 2,059,971 -
Other 104,397 1,117,088 1,221,485 -
Total operating revenues 29,690,399 11,982,222 41,672,621 3,524,616
OPERATING EXPENSES
Personnel services 7,368,911 1,283,352 8,652,263 555,143
Maintenance and operations 5,139,246 11,261,497 16,400,743 1,330,520
Administrative expenses 484,815 - 484,815 -
Cost of purchased water 15,916,270 - 15,916,270 -
Depreciation 1,385,052 1,069,440 2,454,492 -
Total operating expenses 30,294,294 13,614,289 43,908,583 1,885,663
Operating income (603,895) (1,632,067) (2,235,962) 1,638,953
NONOPERATING REVENUES
(EXPENSES)
Interest revenue 79,163 57,570 136,733 26,787
Interest expense and fiscal charges (300,865) (16,020) (316,885) (8,634)
Gain (loss) on sale of property (48,433) (14,947) (63,380) 175,115
Grant revenue 123,420 27,894 151,314 -
Bond issuance costs (329,013) (11,873) (340,886) (6,399)
Other nonoperating revenue 1,112,169 - 1,112,169 -
Total nonoperating revenues
(expenses)636,441 42,624 679,065 186,869
Income before transfers 32,546 (1,589,443) (1,556,897) 1,825,822
TRANSFERS
Transfers out (note 5)(244,601) (109,961) (354,562) (1,279,935)
Total transfers (244,601) (109,961) (354,562) (1,279,935)
Change in net position (212,055) (1,699,404) (1,911,459) 545,887
Net position, beginning of year 33,213,747 27,118,059 60,331,806 9,969,597
Net position, end of year 33,001,692$ 25,418,655 58,420,347 10,515,484
Proprietary Funds
CITY OF POWAY
Statement of Revenues, Expenses and Changes in Net Position
Year Ended June 30, 2022
See accompanying notes to the basic financial statements
33
Governmental
Activities -
Internal Service
Water Sewer Total Fund
Cash flows from operating activities:
Cash received from customers 30,767,333$ 9,568,473 40,335,806 -
Cash received from interfund charges - - - 3,524,616
Cash paid to employees for services (13,685,114) (2,268,851) (15,953,965) (1,104,645)
Cash paid to suppliers for goods or services (20,640,978) (11,482,646) (32,123,624) (2,227,635)
Other 104,397 1,117,088 1,221,485 -
Net cash provided by (used for)
operating activities (3,454,362) (3,065,936) (6,520,298) 192,336
Cash flows from noncapital financing
activities:
Loan repayment from the Successor Agency 95,407 45,448 140,855 -
Bond issuance costs (60,674) (9,653) (70,327) -
Proceeds from bond issuance 8,278,110 1,349,810 9,627,920 -
Cash received from other funds (6,844) (377) (7,221) -
Cash paid to other funds (244,601) (109,961) (354,562) (1,315,889)
Net cash used for
noncapital financing activities 8,061,398 1,275,267 9,336,665 (1,315,889)
Cash flows from capital and related
financing activities:
Acquisition of capital assets (9,612,912) - (9,612,912) -
Proceeds from sale of capital assets - - - 175,115
Proceeds from bond issuance 15,222,309 - 15,222,309 727,495
Bond issuance costs (268,339) (2,222) (270,561) (6,399)
Payment of interest and fees (200,170) - (200,170) -
Net cash provided by (used for) capital
and related financing activities 5,140,888 (2,222) 5,138,666 896,211
Cash flows from investing activities:
Interest income 79,163 57,570 136,733 26,787
Net cash provided by
investing activities 79,163 57,570 136,733 26,787
Net increase (decrease) in cash and
investments 9,827,087 (1,735,321) 8,091,766 (200,555)
Cash and investments, beginning of year 12,838,334 17,243,984 30,082,318 10,156,144
Cash and investments, end of year 22,665,421$ 15,508,663 38,174,084 9,955,589
CITY OF POWAY
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2022
See accompanying notes to the basic financial statements
34
Governmental
Activities -
Internal Service
Water Sewer Total Funds
Reconciliation of operating income
to net cash provided by operating activities:
Operating income (603,895)$ (1,632,067) (2,235,962) 1,638,953
Adjustments to reconcile operating income
to net cash provided by
operating activities:
Depreciation 1,385,052 1,069,440 2,454,492 -
Other nonoperating revenue 1,235,589 27,894 1,263,483 -
(Increase) decrease in assets:
Accounts receivable (42,389) (1,321,005) (1,363,394) -
Inventories (253,925) (21,157) (275,082) -
Prepaid expense (34,285) - (34,285) (764,987)
Net pension asset 227,001 20,001 247,002 25,318
Deferred outflows - pension related (5,955,453) (923,950) (6,879,403) (520,764)
Increase (decrease) in liabilities:
Accounts payable 1,345,234 (169,824) 1,175,410 (116,624)
Accrued liabilities (157,671) (30,168) (187,839) (15,503)
Compensated absences 30,580 9,382 39,962 (2,571)
Net pension liability (1,830,303) (326,449) (2,156,752) (144,779)
Unearned revenue (7,684) (3,550) (11,234) -
Deposits (34,765) - (34,765) -
Deferred inflows - pension related 1,242,552 235,517 1,478,069 93,293
Net cash provided by (used for)
operating activities (3,454,362)$ (3,065,936) (6,520,298) 192,336
There were no noncash investing, capital and financing activities during fiscal year ended June 30, 2022.
City of Poway
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2022
(Continued)
See accompanying notes to the basic financial statements
35
This page intentionally left blank.
36
FIDUCIARY FUND
FINANCIAL STATEMENTS
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).
37
Successor Agency
to the Poway
Redevelopment
Agency
ASSETS
Current assets
Cash and investments (note 2)7,269,324$
Receivables:
Prepaid charges 136,528
Total current assets 7,405,852
Noncurrent assets
Capital assets:
Nondepreciable (note 6)2,864,759
Total noncurrent assets 2,864,759
Total assets 10,270,611
LIABILITIES
Current liabilities
Accounts payable 7,316
Long-term debt - due within one year (note 7)9,859,967
Total current liabilities 9,867,283
Noncurrent liabilities
Advances from City of Poway (note 5)2,138,709
Interest payable 226,924
Long-term debt - due in more than one year (note 7)107,908,792
Total noncurrent liabilities 110,274,425
Total liabilities 120,141,708
DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding of debt 867,633
NET POSITION (DEFICIT)
Held in trust for retirement of obligations
of the former Poway Redevelopment Agency (110,738,730)$
CITY OF POWAY
Statement of Fiduciary Net Position
June 30, 2022
Fiduciary Funds
See accompanying notes to the basic financial statements
38
Successor Agency
to the Poway
Redevelopment
Agency
ADDITIONS
Redevelopment Property Tax Trust Fund 57,517,332$
Investment earnings 99,296
Total additions 57,616,628
DEDUCTIONS
Enforceable obligations payments 42,780,984
Administration expenses 1,045,216
Interest expense and fiscal charges 4,097,014
Total deductions 47,923,214
Change in net position 9,693,414
Net position (deficit), beginning of year (120,432,144)
Net position (deficit), end of year (110,738,730)$
CITY OF POWAY
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2022
See accompanying notes to the basic financial statements
39
This page intentionally left blank.
40
NOTES TO THE BASIC
FINANCIAL STATEMENTS
41
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022
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.
42
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
A. Financial Reporting Entity (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 is 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.
43
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
B. Basis of Accounting and Measurement Focus (continued)
Government–Wide and Fund Financial Statements (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.
44
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
B. Basis of Accounting and Measurement Focus (continued)
Governmental Fund Financial Statements (continued)
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.
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 Housing
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.
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 Funds are used to account for the principal and interest payments on current
and long-term debt.
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.
45
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
B. Basis of Accounting and Measurement Focus (continued)
Proprietary Fund Financial Statements (continued)
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.
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 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.
Fiduciary Fund Financial Statements
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.
46
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
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
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).
47
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
C. Cash, Cash Equivalents and Investments (continued)
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 City 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.
Level 3: Inputs to the valuation methodology 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. Interfund 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. Leases
For the year ended June 30, 2022, the financial statements include the adoption of GASB Statement
No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency
of information about governments' leasing activities. This statement establishes a single model for
lease accounting based on the principle that leases are financings of the right to use an underlying
asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-
to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of
resources. For additional information, refer to the disclosures in Footnote 3.
Key estimates and judgments include how the City determines the discount rate it uses to discount
the expected lease receipts to present value, lease term and lease receipts.
48
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
F. Leases (continued)
The City used the estimated incremental borrowing rate as the discount rate for leases. The lease
term includes the noncancellable period of the lease. Lease receipts included the measurement of
the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its leases and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur that
are expected to significantly affect the amount of the lease receivable.
G. 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 acquisition date.
Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Buildings 10-50 years
Building 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
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.
49
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
H. Deferred Inflows and Deferred Outflows of Resources
Deferred outflows of resources are transactions that represent a consumption of net assets that
applies 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 represent an acquisition of net assets that applies 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 and the Statement of Fiduciary Net
Position. The City has four items that qualifies for reporting in this category, deferred inflows related
to pensions, unavailable revenues, leases and deferred gain on refunding of debt. Unavailable
revenues are reported only in the governmental funds balance sheet and from accounts, taxes and
grant receivables. These amounts are deferred and recognized as revenues in the period that the
amounts become available. Deferred gain on refunding is only reported in the Statement of
Fiduciary Net Position.
A deferred gain on refunding results from the difference in the carrying value of refunded debt and
its reacquisition price. This amount is deferred and amortized over the shorter of the refunded or
refunding debt.
I. 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.
J. 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.
50
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
J. Long-Term Debt (continued)
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.
K. 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.
GASB 68 requires that the reported results must pertain to liability and asset information within
certain defined timeframes. The following timeframes are used for pension reporting:
CalPERS Plans
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
PARS Plan
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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.
The difference between projected and actual earning is 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.
51
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
L. 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.
M. 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.
52
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
N. Fund Balances
In the Governmental Fund Financial Statements, fund balances are classified in the following
categories:
Nonspendable fund balances are items that cannot be spent because they are not in spendable
form, such as prepaid items and inventories, and/or items that are legally or contractually
required to be maintained intact, such as principal of an endowment or revolving loan funds.
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 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 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 fund balances include 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.
O. 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.
53
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (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, 2022:
Government-Wide
Statement of Net Position
Fiduciary
Fund
Governmental
Activities
Business-Type
Activities
Statement of
Net Position
Total
Cash and investments $ 93,985,775 38,174,084 7,269,324 139,429,183
Cash and investments with
fiscal agents
596,988
-
-
596,988
Total $ 94,582,763 38,174,084 7,269,324 140,026,171
Cash, cash equivalents, and investments consisted of the following at June 30, 2022:
Cash on hand $ 8,600
Demand deposits 2,554,718
Investments 137,462,853
Total $ 140,026,171
A. Cash Deposits
The carrying amounts of the City’s demand deposits were $3,271,425 at June 30, 2022. Bank
balances at June 30, 2022 were $3,734,791, 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.
54
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 2 – Cash, Cash Equivalents and Investments (continued)
A. Cash Deposits (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
Maturity
Maximum
Percentage
of Portfolio*
Maximum
Investment
In One Issuer*
U.S. Treasury Obligation 5 years None None
U.S. Agency Securities 5 years 75% 25%
Bankers Acceptances 180 days 40% 5%
Medium-Term and Corporate Notes 5 years 30% 5%
Money Market Mutual Funds N/A 20% 10%
Mortgage and Asset-Backed Securities 5 years 20% None
Supranationals 5 years 30% None
Commercial Paper 270 days 25% 5%
Municipal Bonds 5 years 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.
55
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 2 – Cash, Cash Equivalents and Investments (continued)
B. Investments (continued)
Investments 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
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
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment
in One Issuer
Repurchase Agreement 1 year None None
Money Market Mutual funds N/A None None
U.S. Agency Securities 5 years None None
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:
12 Months 13 to 24 25 to 60
Investment Type Amounts or Less Months Months
U.S. Treasury Bills 28,941,905$ 8,961,874 18,698,156 1,281,875
U.S. Agencies 25,495,081 12,796,153 12,698,928 -
CalTrust Investment Pool - Short term 11,378,567 11,378,567 - -
CalTrust Investment Pool - Medium term 11,396,992 - 11,396,992 -
Medium-Term and Corporate Notes 20,494,106 6,887,974 13,606,132 -
Local Agency Investment Fund (LAIF) 39,048,870 39,048,870 - -
San Diego County Investment Pool 110,344 110,344 - -
Held by bond trustee:
Money Market Funds 596,988 596,988 - -
Total 137,462,853$ 79,780,770 56,400,208 1,281,875
Remaining Maturities
56
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (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, 2022 for each investment type:
Concentration of Credit Risk
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 CalTRUST 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 Reported Amount % of Investment
Federal Farm Credit Federal Agency $ 14,900,341 11%
D. Investment in Local Agency Investment Funds
The City’s investments with Local Agency Investment Funds (“LAIF”) at June 30, 2022, 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:
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.
Minimum
Investment Type Rating S&P Moody's Fair Value
U.S. Treasury Bills exempt exempt exempt 28,941,905$
U.S. Agencies Aaa AA Aaa 25,495,081
CalTrust Investment Pool-Short term AAf AAf not rated 11,378,567
CalTrust Investment Pool-Medium term N/A not rated not rated 11,396,992
Medium-Term and Corporate Notes A-/A3 AA Aaa 20,494,106
Local Agency Investment Fund (LAIF)N/A not rated not rated 39,048,870
San Diego County Investment Pool AAAf AAAf not rated 110,344
Held by bond trustee:
Money Market Funds AAA AAAm Aaamf 596,988
Total 137,462,853$
57
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 2 – Cash, Cash Equivalents and Investments (continued)
D. Investment in Local Agency Investment Funds (continued)
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 her/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, 2022, the City had $39,048,870 invested in LAIF, which had invested 1.88% 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.
Separate LAIF financial statements are available from State Treasurer’s Office, Local Agency
Investment Fund, 915 Capitol Mall, Room 106, Sacramento, CA 95814.
E. Investment in CalTRUST
The City is a voluntary participant in the Investment Trust of California (CalTRUST) 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 CalTRUST
financial statements are available from CalTRUST’s offices at 400 Capitol Mall, Suite 702,
Sacramento, CA 95814.
As of June 30, 2022, the City had $22,775,559 invested in CalTRUST.
The City’s investment in this pool is reported in the accompanying financial statements at fair value.
F. Investment in San Diego County Investment Pool
The City is a voluntary participant in the County Treasury Pool (“County Pool”) which is regulated
under the oversight of the Treasurer of the County of San Diego. The fair value of the City’s
investment in the County Pool is reported in the accompanying financial statements based upon the
City’s pro-rata share of the fair value provided by the County Pool for the entire portfolio. The
balance available for withdrawal is based on the accounting records maintained by the Pool.
58
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Not Subject to
Fair Value Level Total Level 1 Level 2 Level 3 GASB 72
U.S. Treasury Bills 28,941,905$ 28,941,905 - - -
U.S. Agencies 25,495,081 - 25,495,081 - -
CalTrust Investment Pools 22,775,559 - - - 22,775,559
Medium-Term and Corporate Notes 20,494,106 - 20,494,106 - -
Local Agency Investment Fund (LAIF)39,048,870 - - - 39,048,870
San Diego County Investment Pool 110,344 - - - 110,344
Money Market Funds 596,988 - - - 596,988
Total investments by fair value level 137,462,853$ 28,941,905 45,989,187 - 62,531,761
Fair Value Measurement Using
Investments by
Note 2 – Cash, Cash Equivalents and Investments (continued)
F. Investment in San Diego County Investment Pool (continued)
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. Separate San Diego County financial statements are
available from County Administration Center at 1600 Pacific Highway, San Diego, CA 92101.
At June 30, 2022, the City had $110,344 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
of June 30, 2022.
Note 3 – Leases Receivable
The City is a lessor in a noncancellable leases for use of City property. The leases range from 10 to 15
years. The leases are required to make fixed monthly payments at $4,000 per month and additional
annual percentage rent payment starting at 7% to 10% of total annual gross revenues. The City is also a
lessor in a 14-year noncancellable lease for restaurant space with fixed monthly rent payments starting
at $5,300 to $7,550 per month. The City recognized $127,490 in lease revenue and $11,115 in interest
revenue during the current fiscal year related to these agreements. As of June 30, 2022, the lease
receivable is $413,093 and deferred inflows of resources is $292,704.
59
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 4 – Notes Receivable
At June 30, 2022, notes receivable consisted of the following:
The City owned the Poway Royal Mobilehome Park until it was sold to Hometown America
Communities in July 2010. As part of the sale, the City received a 20-year interest only note
for $10,000,000. The annual interest payment is $500,000 and due each July. The note
matures on 7/12/2030.
$ 10,000,000
In April 2020, the City loaned $1,700,000 to a developer for the acquisition, development
and construction of a commercial project. The annual interest rate, which will be
determined 14 days prior to the due date, is the sum of the rate published by the United
States Department of the Treasury, as the interest rate for its Five-Year Treasury Bill, plus
2.25%. The interest is compounded monthly. The note and all accrued interest are due in
April 2024.
1,700,000
On March 13, 2020, the City declared a Local Emergency as a result of the novel coronavirus
disease 2019 (COVID-19) pandemic. On April 16, 2020, the City implemented the Poway
Emergency Assistance Recovery Loan (PEARL) program to offer financial assistance to small,
independently owned businesses located in the City. The maximum loan amount is $50,000
per business. The term of the loan is 3 years at 3% annual interest beginning 90 days after
the City rescinds the Local Emergency declaration. However, if the loan is repaid in full
within the 90 days, then the interest is 0%. As of June 30, 2022, the City has not rescinded
the Local Emergency declaration.
1,180,188
The City established the Employee Computer Purchase Program to provide eligible
employees the opportunity to increase their knowledge of computers and business
software. Under this program, the City made computer loans to eligible employees. The
term of the loan is 12 or 24 months at 4% annual interest or the current interest rate
received by the City’s investment portfolio, whichever is greater.
3,063
Total notes receivable
$ 12,833,251
Note 5 – Interfund Transactions
A. Due To and Due From Other Funds
As of June 30, 2022, balances were as follows:
These balances resulted from loans to cover negative cash balances and capital replacement costs.
General Water Sewer Internal Service
Due to other funds Fund Fund Fund Fund Total
Governmental Activities:
General Fund -$ - - 240,333 240,333
Non-major Governmental Funds 81,318 36,413 14,617 138,887 271,235
Total due to other funds 81,318$ 36,413 14,617 379,220 511,568
Due from other funds
60
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 5 – Interfund Transactions (continued)
B. Advances To and Advances From Fiduciary Funds
The advances to fiduciary funds were primarily used for the following:
Advances to Fiduciary Funds
Advances from
Governmental Funds
Governmental Activities:
Housing Authority $ 427,743
Non-major Governmental Funds 426,085
Business-Type Activities:
Water Fund 895,209
Sewer Fund 389,672
Total $ 2,138,709
The City Council authorized various advances to the former Poway Redevelopment Agency, which
now reside in the Successor Agency, totaling $2,138,709. As approved by the State of California
Department of Finance, these advances are being repaid through fiscal year 2032-33. The advance
bears 3% interest rate, payable over 18 years.
C. Transfers To and From Other Funds
Transfers for the year ended June 30, 2022:
Transfers are primarily used for the following:
Move revenues from the fund that statute or budget requires to collect them to the fund that
statute or budget requires to expend them;
Move receipt restricted to the debt service from the funds collecting the receipts, to the debt
service fund as debt service payments become due;
Move available funds to capital project funds for approved projects.
Non-major
Governmental
Transfers Out General Funds Total
General Fund -$ 1,020,465 1,020,465
Maintenance District Fund -
Housing Authority - - -
City of Poway CIP - - -
Non-major Governmental Funds 867,773 - 867,773
Water Enterprise Fund 16,891 227,710 244,601
Sewer Enterprise Fund - 109,961 109,961
Internal Service Fund 1,279,935 - 1,279,935
Total 2,164,599$ 1,358,136 3,522,735
Transfers In
61
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 6 – Capital Assets
A. Governmental Activities
A summary of changes in capital assets for governmental activities for the year ended June 30, 2022:
Governmental activities depreciation expense for capital assets for the year ended June 30, 2022:
General Government $ 971,924
Public Safety 700,611
Public Works 2,589,401
Community Services 1,163,304
Total Depreciation Expense $ 5,425,240
Balance at Balance at
June 30, 2021 Additions Deletions Transfers June 30, 2022
Non-Depreciable Assets
Land 38,370,065$ - - - 38,370,065
Construction in progress 575,359 2,609,396 - (2,687,625) 497,130
Total non-depreciable assets 38,945,424 2,609,396 - (2,687,625) 38,867,195
Depreciable Assets
Buildings 75,853,835 - (1,130,574) 3,617,242 78,340,503
Improvements other than buildings 11,541,323 - (115,177) 3,992,926 15,419,072
Infrastructure 147,801,884 160,573 - (5,613,282) 142,349,175
Right to use assets 1,330,746 - - - 1,330,746
Machinery and equipment 19,084,996 1,373,036 (849,280) 690,739 20,299,491
Total depreciable assets 255,612,784 1,533,609 (2,095,031) 2,687,625 257,738,987
Less accumulated depreciation
Buildings (40,647,880) (1,784,929) 703,297 (595,896) (42,325,408)
Improvements other than buildings (2,788,536) (532,260) 10,648 (842,357) (4,152,505)
Infrastructure (112,553,653) (2,010,693) - 1,581,238 (112,983,108)
Right to use assets (665,373) (133,074) - - (798,447)
Machinery and equipment (13,013,700) (964,284) 849,280 (142,985) (13,271,689)
Total accumulated depreciation (169,669,142) (5,425,240) 1,563,225 - (173,531,157)
Total depreciable assets, net 85,943,642 (3,891,631) (531,806) 2,687,625 84,207,830
Total governmental activities 124,889,066$ (1,282,235) (531,806) - 123,075,025
62
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 6 – Capital Assets (continued)
B. Business-type Activities
A summary of changes in capital assets for business-type activities for the year ended June 30, 2022:
Business-type activities depreciation expense for capital assets for the year ended June 30, 2022:
Water Enterprise Fund $ 1,385,052
Sewer Enterprise Fund 1,069,440
Total Depreciation Expense $ 2,454,492
Balance at Balance at
June 30, 2021 Additions Deletions June 30, 2022
Non-Depreciable Assets
Land 76,797$ - - 76,797
Construction in progress 2,226,881 9,601,705 (233,555) 11,595,031
Total non-depreciable assets 2,303,678 9,601,705 (233,555) 11,671,828
Depreciable Assets
Buildings 22,172,729 - (109,168) 22,063,561
Improvements other than buildings 74,747,323 233,555 (1,047,861) 73,933,017
Machinery and equipment 4,079,548 11,209 (622,457) 3,468,300
Total depreciable assets 100,999,600 244,764 (1,779,486) 99,464,878
Less accumulated depreciation
Buildings (19,707,855) (215,813) 96,069 (19,827,599)
Improvements other than buildings (50,344,137) (2,063,897) 1,007,197 (51,400,837)
Machinery and equipment (3,189,897) (174,782) 612,840 (2,751,839)
Total accumulated depreciation (73,241,889) (2,454,492) 1,716,106 (73,980,275)
Total depreciable assets, net 27,757,711 (2,209,728) (63,380) 25,484,603
Total business-type activities 30,061,389$ 7,391,977 (296,935) 37,156,431
63
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 6 – Capital Assets (continued)
C. Fiduciary Activities
A summary of changes in capital assets for fiduciary activities for the year ended June 30, 2022:
Note 7 – Long-Term Debt
A summary of changes in long-term debt for the year ended June 30, 2022:
Balance at Balance at
June 30, 2021 Additions Deletions June 30, 2022
Non-Depreciable Assets
Land 2,864,759$ - - 2,864,759
Total non-depreciable assets 2,864,759 - - 2,864,759
Total fiduciary activities 2,864,759$ - - 2,864,759
Amount Amount
Balance Balance Due Within Due In More
June 30, 2021 Additions Reductions June 30, 2022 One Year Than One Year
Governmental Activities:
2005 Certificates of Participation 1,415,000$ - (210,000) 1,205,000 220,000 985,000
Bond Premium 7,079 - (2,093) 4,986 1,749 3,237
2012 Certificates of Participation 9,175,000 - (645,000) 8,530,000 665,000 7,865,000
Bond Premium 105,474 - (15,145) 90,329 14,112 76,217
2021 Pension Obligation Bonds - 33,990,670 - 33,990,670 255,948 33,734,722
Compensated Absences 2,040,368 2,326,872 (2,399,056) 1,968,184 1,580,026 388,158
Regional Communications System
Lease 841,922 - (134,498) 707,424 134,498 572,926
Total governmental activities 13,584,843$ 36,317,542 (3,405,792) 46,496,593 2,871,333 43,625,260
Business-Type Activities:
2021 Water Revenue Bonds -$ 12,930,000 (130,000) 12,800,000 240,000 12,560,000
Bond Premium - 2,292,309 (76,410) 2,215,899 76,410 2,139,489
2021 Pension Obligation Bonds - 9,834,330 - 9,834,330 74,052 9,760,278
Compensated Absences 320,272 424,508 (384,546) 360,234 288,187 72,047
Total business-type activities 320,272$ 25,481,147 (590,956) 25,210,463 678,649 24,531,814
Fiduciary Funds:
2015A Tax Allocation Bonds 116,490,000$ - (7,935,000) 108,555,000 8,345,000 100,210,000
Bond Premium 10,843,638 - (1,629,879) 9,213,759 1,514,967 7,698,792
Total fiduciary activities 127,333,638$ - (9,564,879) 117,768,759 9,859,967 107,908,792
Classification
64
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 7 – Long-Term Debt (continued)
A. Governmental Activities Long-Term Debt
2005 Certificates of Participation
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, 2022, the City’s portion of the outstanding balance of the 2005 Certificates of
Participation was $1,205,000.
The annual requirements to amortize the City portion of Certificates of Participation outstanding at
June 30, 2022:
2012 Certificates of Participation
On October 5, 2012, the Public Financing Authority (the “PFA”) 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 City leased certain existing property from the Public Financing
Authority 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. 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, 2022, the outstanding balance of the
2012 Certificates of Participation was $8,530,000.
Year Ending
June 30,Principal Interest Total
2023 220,000$ 49,275 269,275
2024 230,000 39,150 269,150
2025 240,000 28,575 268,575
2026 250,000 17,550 267,550
2027 265,000 5,963 270,963
Total 1,205,000$ 140,513 1,345,513
65
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 7 – Long-Term Debt (continued)
A. Governmental Activities Long-Term Debt (continued)
The annual requirements to amortize Certificates of Participation outstanding at June 30, 2022:
2021 Pension Obligation Bonds
On December 1, 2021, the City of Poway issued 2021 Pension Obligation Bonds to pay a portion of
the City’s currently unamortized, unfunded accrued actuarial liability to the California Public
Employees’ Retirement System with respect to the City’s defined retirement plans for City
employees. The interest with respect to the Bonds is payable on December 1 and June 1 of each
year, commencing December 1, 2022 at rates ranging from .079% to 2.98%. The pension obligation
bonds are allocated across all the City’s funds based on the percentage share of the CalPERS
unfunded accrued liability per the GASB 68 Actuarial reports. At June 30, 2022, the outstanding
balance of the 2021 Pension Obligation Bonds for governmental activities was $33,990,670.
The annual requirements to amortize the governmental activities Pension Obligation Bonds
outstanding at June 30, 2022:
Year Ending
June 30,Principal Interest Total
2023 665,000$ 264,258 929,258
2024 685,000 244,308 929,308
2025 710,000 223,758 933,758
2026 725,000 202,458 927,458
2027 745,000 180,708 925,708
2028 - 2032 4,100,000 546,740 4,646,740
2033 900,000 29,250 929,250
Total 8,530,000$ 1,691,480 10,221,480
Year Ending
June 30,Principal Interest Total
2023 255,948$ 1,233,949 1,489,897
2024 1,516,298 852,458 2,368,756
2025 1,531,810 836,143 2,367,953
2026 1,551,200 815,417 2,366,617
2027 1,574,468 791,482 2,365,950
2028 - 2032 8,349,334 3,484,538 11,833,872
2033 - 2037 9,454,564 2,385,543 11,840,107
2038 - 2042 6,802,012 1,035,376 7,837,388
2043 - 2047 2,749,502 243,479 2,992,981
2048 205,534 6,634 212,168
Total 33,990,670$ 11,685,019 45,675,689
66
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 7 – Long-Term Debt (continued)
A. Governmental Activities Long-Term Debt (continued)
Regional Communication System
In October 2016, the City of Poway entered into an agreement with the County of San Diego with
respect to the Next Generation Regional Communications System (NextGen RCS). Under this
agreement, beginning on June 1, 2017, the City will pay an annual payment of $154,337 for ten
years to the County of San Diego for rights of use of the NextGen RCS. As of June 30, 2022, the
remaining balance on the lease is $707,424. The following are remaining annual lease payments
June 30, 2022:
B. Proprietary Funds Long Term Debt
2021 Water Revenue Bonds
On November 1, 2021, the Public Financing Authority (the “PFA”) issued 2021 Water revenue Bonds
to provide financing for certain capital improvements to the City’s Water System. The interest with
respect to the Bonds is payable on June 1 of each year, commencing June 1, 2022 at rates ranging
from 3.00% to 4.00%. At June 30, 2022, the outstanding balance of the 2021 Water Revenue Bonds
was $12,800,000.
Year Ending
June 30,Principal Interest Total
2023 134,498$ 19,839 154,337
2024 138,250 16,087 154,337
2025 142,107 12,230 154,337
2026 146,072 8,265 154,337
2027 146,497 4,189 150,686
Total 707,424$ 60,610 768,034
Year Ending
June 30,Principal Interest Total
2023 240,000$ 512,000 752,000
2024 250,000 502,400 752,400
2025 260,000 492,400 752,400
2026 270,000 482,000 752,000
2027 285,000 471,200 756,200
2028 - 2032 1,595,000 2,176,400 3,771,400
2033 - 2037 1,935,000 1,831,200 3,766,200
2038 - 2042 2,360,000 1,411,600 3,771,600
2043 - 2047 2,870,000 900,400 3,770,400
2048-2051 2,735,000 278,800 3,013,800
Total 12,800,000$ 9,058,400 21,858,400
67
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 7 – Long-Term Debt (continued)
B. Proprietary Funds Long-Term Debt (continued)
2021 Pension Obligation Bonds
On December 1, 2021, the City of Poway issued 2021 Pension Obligation Bonds to pay a portion of
the City’s currently unamortized, unfunded accrued actuarial liability to the California Public
Employees’ Retirement System with respect to the City’s defined retirement plans for City
employees. The interest with respect to the Bonds is payable on December 1 and June 1 of each
year, commencing December 1, 2022 at rates ranging from .079% to 2.98%. The pension obligation
bonds are allocated across all the City’s funds based on the percentage share of the CalPERS
unfunded accrued liability per the GASB 68 Actuarial reports. At June 30, 2022, the outstanding
balance of the 2021 Pension Obligation Bonds for business-type activities was $9,834,330.
The annual requirements to amortize the proprietary funds Pension Obligation Bonds outstanding at
June 30, 2022:
C. Fiduciary Funds Long Term Debt
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 $133,110,000 for the purpose of effecting a
refunding of the Poway Redevelopment Agency’s outstanding Paguay Redevelopment Project Tax
Allocation Refunding Bonds, Series 2000, Series 2001 and Series 2003. The bonds are dated July 1,
2015 and mature on June 15, 2033 in the principal amount and bear interest from 4% to 5%.
Interest is payable semi-annually on June 15 and December 15 through 2033. The bonds maturing
on December 15, 2026, December 15, 2027, June 15, 2028, December 15, 2028 and on December
15, 2029 are subject to optional redemption prior to maturity at the option of the Successor Agency.
Year Ending
June 30,Principal Interest Total
2023 74,052$ 1,590,961 1,665,013
2024 438,702 1,099,095 1,537,797
2025 443,190 1,078,059 1,521,249
2026 448,800 1,051,337 1,500,137
2027 455,532 1,020,477 1,476,009
2028 - 2032 2,415,666 4,492,700 6,908,366
2033 - 2037 2,735,436 3,075,739 5,811,175
2038 - 2042 1,967,988 1,334,936 3,302,924
2043 - 2047 795,498 313,923 1,109,421
2048 59,466 8,554 68,020
Total 9,834,330$ 15,065,781 24,900,111
68
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 7 – Long-Term Debt (continued)
C. Fiduciary Funds Long Term Debt (continued)
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, 2022, the balance of the 2015A Tax Allocation Bonds was $108,555,000. The annual
requirements to amortize the bonds outstanding at June 30, 2022:
D. Compensated Absences
This liability represents the total unpaid vacation, compensatory time, and unpaid sick leave 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, 2022, the outstanding balance of governmental activities and business-
type activities compensated absences were $1,968,185 and $360,234, respectively.
Note 8 – Pension Plan Summary
The City currently has two pension plans administered by California Public Employees’ Retirement
System (CalPERS) and one retirement enhancement plan administered by the Public Agency Retirement
Services (PARS). The pension plans consist of a miscellaneous agent plan and a cost-sharing safety plan
(see Note 9 for a full description of the plans). The retirement enhancement plan serves as a
supplemental defined benefit pension plan (see Note 10 for a full description of the plan). The summary
of the deferred outflows of resources, deferred inflows of resources, net pension liability and pension
expense:
Year Ending
June 30, Principal Interest Total
2023 8,345,000$ 5,324,750 13,669,750
2024 8,770,000 4,902,250 13,672,250
2025 9,215,000 4,458,250 13,673,250
2026 11,430,000 3,970,125 15,400,125
2027 9,420,000 3,423,500 12,843,500
2028-2032 49,845,000 9,989,625 59,834,625
2033 11,530,000 434,125 11,964,125
Total 108,555,000$ 32,502,625 141,057,625
69
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 8 – Pension Plan Summary (continued)
Miscellaneous Safety PARS Total
Deferred Outflows of
Resources
$ 34,185,975 18,934,032 2,171,817 55,291,824
Deferred Inflows of
Resources
(9,891,515) (8,004,372) - (17,895,887)
Net Pension (Liability)/Asset (25,913,074) (11,693,283) (2,158,175) (39,764,532)
Pension Expense/ (Credit) 1,547,615 2,150,930 889,813 4,588,358
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 9 – Defined Benefit Pension Plans - CalPERS
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 CalPERS.
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, 2020, 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 CalPERS audited financial statements are publicly available reports that can be
obtained on the CalPERS 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 CalPERS. The
Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a
miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate
plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or
miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers
may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors
one safety plan in safety risk pools. Benefit provisions under the Plan are established by State
statute and the City resolution. CalPERS issues publicly available reports that include a full
description of the pension plan regarding benefit provisions, assumptions and membership
information that can be found on the CalPERS’ website, at www.calpers.ca.gov.
70
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 9 – Defined Benefit Pension Plans - CalPERS (continued)
A. General Information about the Pension Plans (continued)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and
death benefits to plan members, who must be public employees and beneficiaries. Benefits are
based on years of credited service, equal to one year of full-time employment. Members with five
years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members
are eligible for non-duty disability benefits after 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 CalPERS 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 CalPERS Board.
The Plans’ provisions and benefits in effect at June 30, 2022:
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%
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 3.0% @ 50 3.0% @ 55 2.7% @ 57
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 & Up 50-55 & Up 50-57 & Up
Monthly benefits, as a % of eligible
compensations 3.0%2.4% to 3.0%2.0% to 2.7%
Safety Plan
71
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 9 – Defined Benefit Pension Plans - CalPERS (continued)
A. General Information about the Pension Plans (continued)
Employees Covered
At June 30, 2021 (measurement date), the following employees were covered by the benefit terms:
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 CalPERS’ 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, 2021,
using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021, using
standard update procedures. A summary of principal assumptions and methods used to determine
the net pension liability:
Miscellaneous Safety
Inactive employees or beneficiaries
currently receiving benefits 281 53
Inactive employees entitled to but
not yet receiving benefits 226 43
Active employees 173 53
Total 680 149
72
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 9 – Defined Benefit Pension Plans - CalPERS (continued)
B. Net Pension Liability (continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Salary Increase Varies by Entry Age and Service
Mortality Rate Table 1 Derived using CalPERS’ membership data for all funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.50% until Purchasing Power
Protection Allowance floor on purchasing power applies,
2.50% thereafter
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of
mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-
retirement and post-retirement mortality rates include 15 years of projected mortality
improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details
on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions
report from December 2017 that can be found on the CalPERS 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.
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.
73
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 9 – Defined Benefit Pension Plans - CalPERS (continued)
B. Net Pension Liability (continued)
The expected real rate of return by asset class:
Asset Class1
Assumed Asset
Allocation
Real Return Years
1 - 102
Real Return
Year 11+3
Public Equity 50.0% 4.80% 5.98%
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 ACFR, 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 CalPERS financial reports.
Miscellaneous Plan
The following table shows the Plan’s change in net pension liability over the measurement period.
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
(a) (b) (c) = (a) – (b)
Balance at: 6/30/2020 (VD) $ 123,709,519 85,722,034 37,937,485
Changes Recognized for the
Measurement Period:
Service Cost 1,880,665 - 1,880,665
Interest on the Total Pension Liability 8,750,527 - 8,750,527
Differences between Expected and
Actual Experience
(1,131,639)
-
(1,131,639)
Contributions – Employer - 3,728,403 (3,728,403)
Contributions – Employees - 903,026 (903,026)
Net Investment Income - 19,241,494 (19,241,494)
Benefit Payments, including Refunds of
Employee Contributions
(6,793,001)
(6,793,001)
-
Administrative Expense - (85,681) 85,681
Net Change During 2020-21 4,969,830 16,994,241 (12,024,411)
Balance at: 6/30/2021 (MD) $ 128,679,349 102,766,275 25,913,074
74
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 9 – Defined Benefit Pension Plans - CalPERS (continued)
B. Net Pension Liability (continued)
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, 2021, 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, 2020, rolled forward to June
30, 2021, using standard update procedures.
The City’s proportion of the net pension liability was determined by CalPERS using the output from
the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public
Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be
obtained at CalPERS’ 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, 2020, and 2021, was as
follows:
Safety Plan
Proportionate Share of NPL - June 30, 2020 0.28155%
Proportionate Share of NPL - June 30, 2021 0.33319%
Change - Increase (Decrease) 0.05164%
The following table shows the Plan’s proportionate share of the net pension liability over the
measurement period.
Increase (Decrease)
Plan Total Pension
Liability
Plan Fiduciary
Net Position
Plan Net Pension
Liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2020 (VD) $ 67,450,512 48,692,440 18,758,072
Balance at: 6/30/2021 (MD) 69,918,725 58,225,442 11,693,283
Net changes during 2020-21 $ 2,468,213 9,533,002 (7,064,789)
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 $ 41,900,246 25,913,074 12,607,748
Safety Plan 21,104,947 11,693,283 3,962,764
75
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 9 – Defined Benefit Pension Plans - CalPERS (continued)
B. Net Pension Liability (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:
Net difference between projected
and actual earnings on pension plan
investments
5-year straight-line amortization
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, 2022, the City recognized pension expense of $1,547,615 and
$2,150,930 for the Miscellaneous and Safety Plans, respectively. At June 30, 2022, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Miscellaneous Safety
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between Expected and Actual
Experience
$ 727,482
(339,480)
1,997,787
-
Net Difference between Projected and Actual
Earnings on Pension Plan Investments
-
(9,552,035)
-
(6,959,751)
Changes in Employer’s Proportion - - 710,500 -
Difference in Actual vs Projected
Contributions
- - - (1,044,621)
Pension Contributions Subsequent to
Measurement Date
33,458,493
-
16,225,745
-
Total $ 34,185,975 (9,891,515) 18,934,032 (8,004,372)
The $33,458,493 and $16,225,745 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, 2023. Amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in future pension expense as
follows:
76
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 9 – Defined Benefit Pension Plans - CalPERS (continued)
B. Net Pension Liability (continued)
Fiscal Year
Ended
Deferred Outflows/(Inflows)
of Resources
June 30, Miscellaneous Safety
2023 $ (2,358,101) (856,953)
2024 (1,883,519) (1,060,313)
2025 (2,282,906) (1,463,594)
2026 (2,639,507) (1,915,225)
Thereafter - -
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year
2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess
return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the
discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the
final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any
changes to the asset allocation until the ALM process concluded, and the board could make its final
decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset
allocation along with the new capital market assumptions, economic assumptions and
administrative expense assumption support a discount rate of 6.90% (net of investment expense but
without a reduction for administrative expense) for financial reporting purposes. This includes a
reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November
2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended
modification to retirement rates, termination rates, mortality rates and rates of salary increases that
were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting
valuation reports for the June 30, 2022, measurement date.
Note 10 – Defined Benefit Pension Plan - Retirement Enhancement Plan
A. General Information about the Pension Plan
Plan Description
The Plan is a single-employer, 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, 2021,
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
statements 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.
77
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 10 – Defined Benefit Pension Plan - Retirement Enhancement Plan (continued)
A. General Information about the Pension Plan (continued)
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 CalPERS "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.
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 CalPERS.
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, 2022 (measurement date), are summarized
as follows:
Supplemental
Hire date On or before January 9, 2012
Benefit formula 2.7% @ 55 less CalPERS 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, 2022 are $1,491,927.
78
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 10 – Defined Benefit Pension Plan - Retirement Enhancement Plan (continued)
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, 2022, using an annual actuarial valuation as of June 30, 2021. A summary of
principal assumptions and methods used to determine the net pension asset is as follows.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 6.50%
Inflation 2.50%
Salary Increases1 3.40% - 9.10%
Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00% compounded annually
Mortality Rate Table Pre-retirement: CalPERS Miscellaneous Non-Industrial Rates
Post-retirement: CalPERS Miscellaneous Non-Industrial Rates
1 Includes inflation. Graded based on years of service, 3.40% after 22 years of service
Employees Covered
At June 30, 2021 (actuarial valuation date), the following employees were covered by the benefit
terms:
Supplemental
Inactive employees or beneficiaries
currently receiving benefits
91
Active employees 49
Total 140
Discount Rate
GASB 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 68 will often
require that the actuary perform complex projections of future benefit payments and asset values.
79
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 10 – Defined Benefit Pension Plan - Retirement Enhancement Plan (continued)
B. Net Pension Liability (continued)
GASB 68 (paragraph 29) does 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 68 specifies 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 68 will show that the fiduciary net position is always projected to be sufficient to
cover benefit payments and administrative expenses.
June 30, 2022
Discount rate 6.50%
Long-term expected rate of return,
net of investment expense
6.50
Municipal bond rate 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.
80
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 10 – 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.
Sensitivity of the Net Pension Asset to Changes in the Discount Rate
The following presents the net pension asset of the City of Poway Retirement Enhancement Plan,
calculated using the discount rate of 6.50%, as well as what Plan's net pension asset 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.
Discount Rate - 1% Current Discount Rate Discount Rate + 1%
(5.50%) (6.50%) (7.50%)
Net Pension Liability $ 4,509,275 2,158,175 168,034
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.
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(c) = (a) - (b)
Balances as of June 30, 2021 20,690,933$ 21,675,818$ (984,885)$
Changes for the year:
Service Cost 137,242 - 137,242
Interest on the Total
Pension Liability 1,315,323 - 1,315,323
Effect of Economic
Demographic Gains or
Losses 39,664 - 39,664
Benefit Payments (1,203,831) (1,203,831) -
Employer Contributions - 1,491,927 (1,491,927)
Net Investment Income - (3,109,657) 3,109,657
Administrative Expenses - (33,101) 33,101
Net Changes during 2021-22 288,398 (2,854,662) 3,143,060
Balance as of June 30, 2022 20,979,331$ 18,821,156$ 2,158,175$
81
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 10 – Defined Benefit Pension Plan - Retirement Enhancement Plan (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City incurred a pension expense of $889,813 for the Plan.
As of June 30, 2022, the City has deferred outflows and deferred inflows of resources related to
pensions:
Amounts reported as deferred outflows and deferred inflows of resources related to pensions will
be recognized in future pension expense:
Measurement
Period Ended
Deferred Outflows/(Inflows)
of Resources, Net
June 30, PARS
2023 $ 666,424
2024 377,529
2025 222,504
2026 905,360
Note 11 – 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 nature of the repayment schedule of these loans,
there is an allowance recorded at 100% of the outstanding balance. The balance of the non-forgivable
rehabilitation loans at June 30, 2022 is $102,128.
BEGIN Program Loans
This program is sponsored by a State of California grant to aid first-time buyers in the purchase of
affordable housing in the City of Poway. These loans have a 30-year term with a one percent interest
rate. If the property is transferred or sold within five years, the loan must be repaid. After five years, if
the property is transferred or sold the loan must be assumed by the buyer for the remaining term. At
the end of the thirty years, the loan must be repaid with principal and interest. Per the grant terms,
loan repayments must be re-loaned.
Deferred Outflows of
Resources
Differences between Expected and
Actual Experience 194,902$
Changes of Assumptions 108,123
Net Difference between Projected and
Actual Earnings on Pension Plan 1,868,792
Total 2,171,817$
82
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 11 – City and Housing Authority Rehabilitation Loan Programs (continued)
BEGIN Program Loans (continued)
Due to the contingent nature of the repayment schedule of these loans, there is an allowance recorded
at 100% of the outstanding balance. The balance of the BEGIN loans, including accrued interest, at June
30, 2022 is $1,722,272.
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, there is an allowance recorded at 100% of
the outstanding balance. The balance of these Affordable Housing loans at June 30, 2022 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 to 57-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, there is an allowance recorded at 100% of
the outstanding balance. The balance of the development loans, including accrued interest, at June 30,
2022 is $42,738,892.
Note 12 – Risk Management
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of Poway is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (CJPIA).
The CJPIA is composed of 118 California public entities and is organized under a joint powers
agreement pursuant to California Government Code §6500 et seq. The purpose of the CJPIA is to
arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance
or reinsurance, and to arrange for group purchased insurance for property and other lines of
coverage. The California JPIA began covering claims of its members in 1978. Each member
government has an elected official as its representative on the Board of Directors. The Board
operates through a nine-member Executive Committee.
B. Primary Self-Insurance Programs of the CJPIA
Each member pays an annual contribution at the beginning of the coverage period. A retrospective
adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage
years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total
funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are
allocated to individual agencies based on payroll and claims history, relative to other members of
the risk-sharing pool.
83
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 12 – Risk Management (continued)
B. Primary Self-Insurance Programs of the CJPIA (continued)
Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of
each member is evaluated relative to the payroll of other members. A variable credibility factor is
determined for each member, which establishes the weight applied to payroll and the weight
applied to losses within the formula. (2) The first layer of losses includes incurred costs up to
$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. Subsidence losses have a sub-limit of $40 million per occurrence. The coverage
structure includes retained risk that is pooled among members, reinsurance, and excess insurance.
More detailed information about the various layers of coverage is available on the following
website:
https://cjpia.org/coverage/risk-sharing-pools/.
Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government
exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A
variable credibility factor is determined for each member, which establishes the weight applied to
payroll and the weight applied to losses within the formula. (2) The first layer of losses includes
incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total
Primary Workers’ Compensation Program (continued)
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 from $100,000 to statutory limits are
distributed based on the outcome of cost allocation within the first and second loss layers.
For 2021-22 the CJPIA’s pooled retention is $1 million per occurrence, with reinsurance to statutory
limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among
members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance
policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
84
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 12 – Risk Management (continued)
C. Purchased Insurance
Pollution Legal Liability Insurance
The City of Poway participates in the pollution legal liability insurance program which is available
through the CJPIA. 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 CJPIA has an aggregate limit of $50 million for the period from July 1, 2021
through July 1, 2022. Each member of the CJPIA has a $10 million sub-limit during the 3-year policy
term.
Property Insurance
The City of Poway participates in the all-risk property protection program of the CJPIA. 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
CJPIA. City of Poway property currently has all-risk property insurance protection in the amount of
$216,800,587. There is a $10,000 deductible per occurrence except for non-emergency vehicle
insurance which has a $2,500 deductible.
Crime Insurance
The City of Poway purchases crime insurance coverage in the amount of $1,000,000 with a $2,500
deductible. The fidelity coverage is provided through the CJPIA.
D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were also no significant
reductions in pooled or insured liability coverage in fiscal year 2021-22.
Note 13 – 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
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, 2022, which is the latest information available:
85
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 13 – Joint Venture (continued)
Amounts in Thousands
Total Assets $ 323
Total Liabilities 0
Total Equity 323
Total Revenues 343
Total Expenses 497
Net decrease in Fund Equity (154)
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 14 – Deficit Net Position
At June 30, 2022, the following funds had deficit net position:
Fund Type Fund Name Deficit
Special Revenue Fund 800 MHz Communication System $ (28,375)
Special Revenue Fund Community Development Block Grant (CDBG) (26,042)
Fiduciary Fund Successor Agency to the Poway Redevelopment Agency (110,738,731)
The 800 MHz Communication System Special Revenue fund had a deficit balance of $(28,375) due to the
timing of collections of the voter-approved special tax. The CDBG Special Revenue fund had a deficit
balance of $(26,042) due to the timing of reimbursement of eligible expenditures.
The Successor Agency to the Poway Redevelopment Agency Private Purpose Trust fund had an
accumulated deficit of $(110,738,731), 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.
Note 15 – 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, 2022 with an estimated cost to complete
of approximately $11,410,478 in all fund types.
86
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 15 – Contingent Liabilities and Commitments (continued)
C. Significant Encumbrances
Encumbrances represent purchase orders, contracts or other commitments for the expenditure of
monies. However, because these commitments will be honored in subsequent years, they do not
constitute an expenditure or liability for financial statement purposes. At fiscal year-end, the City
had the following significant encumbrances.
Special Internal
General Revenue Enterprise Service
Purpose Fund Funds Funds Funds Total
Water Projects -$ - 4,974,448 - 4,974,448
Sewer Projects - - 44,801 - 44,801
Street Projects 505,386 388,876 - - 894,262
Drainage Projects - 95,069 - - 95,069
Professional Services 288,773 60,688 - - 349,461
Equipment 132,496 1,978 - 85,024 219,498
Vehicles 26,319 15,005 - 581,974 623,298
Facilities - - - 174,000 174,000
Computer Equipment and Software - - - 76,883 76,883
Total Outstanding Encumbrances 952,974$ 561,616 5,019,249 917,881 7,451,720
87
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 16 – Fund Balances Classification
The City’s fund balances at June 30, 2022:
* The $1,180,188 Notes Receivables related to the PEARL program (see Note 3) is included in the Extreme Events committed
fund balance instead because the funding for the PEARL program came from there and that amount eventually collected is
subject to the same constraints.
Total
Housing Non-Major
General Authority Governmental
Fund Fund Funds Total
Nonspendable:
Prepaid items 521,204$ - - 521,204
Inventories 157,040 - - 157,040
Land held for resale 177,000 - - 177,000
Notes receivable 12,883,251 - - 12,883,251
Total nonspendable 13,738,495 - - 13,738,495
Restricted:
Debt service payments - - 719,568 719,568
Drainage - - 4,571,771 4,571,771
Fire protection - - 200,906 200,906
Grants - - 445,382 445,382
Housing - 5,620,402 239,722 5,860,124
Maintenance districts - - 8,813,245 8,813,245
Other purposes - - 1,875,170 1,875,170
Parks and recreation - - 1,881,426 1,881,426
Streets - - 5,303,543 5,303,543
Transportation - - 1,272,920 1,272,920
Total restricted - 5,620,402 25,323,653 30,944,055
Committed:
Economic volatility 7,214,278 - - 7,214,278
Extreme events 13,227,618 - - 13,227,618
Total committed 20,441,896 - - 20,441,896
Assigned:
Capital projects 7,310,005 - - 7,310,005
Contractual services 280,792 - - 280,792
Equipment/ furniture 85,075 - - 85,075
Library 268,170 - - 268,170
Parks and recreation 246,854 - - 246,854
Public education & govt programming 1,026,973 - - 1,026,973
Public safety 93,477 - - 93,477
Repair and maintenance 3,540,379 - - 3,540,379
Total assigned 12,851,725 - - 12,851,725
Unassigned 15,897,597 - (54,417) 15,843,180
Total unassigned 15,897,597 - (54,417) 15,843,180
Total fund balances 62,929,713$ 5,620,402 25,269,236 93,819,351
Major Funds
88
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2022 (continued)
Note 17 – 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, 2022:
Note 18 – Implementation of New Accounting Standard
As described in Note 3 to the financial statements, the City changed accounting policies related to leases
by adopting Statement of Governmental Accounting Standards Board (GASB) Statement No. 87, Leases,
in the fiscal year 2022. The City did not restate prior year balances as it was not practicable to do so.
Final
Governmental Funds - Non-Major Fund Budget Expenditures Excess
Special Revenue Funds:
800 MHz Communication System -$ 26 (26)
89
This page intentionally left blank.
90
REQUIRED
SUPPLEMENTARY INFORMATION
91
This page intentionally left blank.
92
CITY OF POWAY
Required Supplementary Information
June 30, 2022
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, capital projects 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 re-appropriated and honored in the subsequent
year.
The following are the budget comparison schedules for the General Fund and Housing Authority Fund.
93
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 39,811,259$ 39,811,259 43,034,316 3,223,057
Licenses and permits 2,152,768 2,152,768 2,140,086 (12,682)
Intergovernmental 3,330,317 3,330,317 6,716,066 3,385,749
Charges for services 4,271,168 4,324,793 6,082,050 1,757,257
Fines and forfeitures 140,000 140,000 121,691 (18,309)
Use (loss) of money and property 1,367,494 1,367,494 (2,355,816) (3,723,310)
Developer fees 2,543,184 3,244,084 3,765,021 520,937
Other revenues 165,040 199,790 436,195 236,405
Total revenues 53,781,230 54,570,505 59,939,609 5,369,104
EXPENDITURES
Current:
General government 9,018,654 17,453,614 14,382,677 3,070,937
Public safety 28,476,160 43,385,436 41,401,577 1,983,859
Public works 5,460,557 9,655,588 9,042,012 613,576
Development services 5,900,803 13,296,040 12,560,103 735,937
Community services 6,273,087 9,782,162 10,053,029 (270,867)
Capital outlay 1,687,500 7,553,690 2,855,448 4,698,242
Debt service:
Issuance costs - - 361,947 (361,947)
Total expenditures 56,816,761 101,126,530 90,656,793 10,469,737
Excess (deficiency) of revenues
over (under) expenditures (3,035,531) (46,556,025) (30,717,184) 15,838,841
OTHER FINANCING SOURCES (USES)
Issuance of debt - 32,393,928 33,263,175 (869,247)
Transfers in 2,645,627 6,586,391 2,164,599 (4,421,792)
Transfers out (2,515,242) (2,515,242) (1,020,465) 1,494,777
Total other financing sources (uses)130,385 36,465,077 34,407,309 (3,796,262)
Net change in fund balance (2,905,146)$ (10,090,948) 3,690,125 13,781,073
Fund balance, beginning of year 59,239,588
Fund balance, end of year 62,929,713$
Budget Amounts
CITY OF POWAY
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
Year Ended June 30, 2022
94
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Charges for services 32,002$ 32,002 19,969 (12,033)
Use of money and property 68,486 68,486 35,380 (33,106)
Other revenues 40,000 40,000 1,687,490 1,647,490
Total revenues 140,488 140,488 1,742,839 1,602,351
EXPENDITURES
Current:
General government 99,900 108,235 9,925 98,310
Development services 49,300 591,944 73,974 517,970
Total expenditures 149,200 700,179 83,899 616,280
Excess (deficiency) of revenues
over (under) expenditures (8,712) (559,691) 1,658,940 2,218,631
Net change in fund balance (8,712)$ (559,691) 1,658,940 2,218,631
Fund balance, beginning of year 3,961,462
Fund balance, end of year 5,620,402$
Budget Amounts
CITY OF POWAY
Budgetary Comparison Schedule - Housing Authority Fund
Required Supplementary Information
Year Ended June 30, 2022
95
This page intentionally left blank.
96
Measurement Period 6/30/2014 6/30/2015 6/30/2016 6/30/2017
TOTAL PENSION LIABILITY
Service Cost 1,515,714$ 1,463,621 1,552,133 1,785,822
Interest 6,646,592 6,973,473 7,241,818 7,456,135
Difference Between Expected and Actual Experience - 179,245 (444,504) (471,057)
Changes of Assumptions - (1,692,043) - 6,085,867
Benefit Payments, Including Refunds of Employee Contributions (3,875,819) (4,300,520) (4,757,620) (5,058,914)
Net Change in Total Pension Liability 4,286,487 2,623,776 3,591,827 9,797,853
Total Pension Liability - Beginning 89,801,273 94,087,760 96,711,536 100,303,363
Total Pension Liability - Ending (a)94,087,760$ 96,711,536 100,303,363 110,101,216
PLAN FIDUCIARY NET POSITION
Net Plan to Plan Resource Movement -$ - - -
Contributions - Employer 1,590,147 1,651,614 1,961,662 2,311,817
Contributions - Employee 716,942 773,660 778,160 806,615
Net Investment Income 11,075,599 1,674,500 387,630 7,966,356
Benefit Payments, Including Refunds of Employee Contributions (3,875,819) (4,300,520) (4,757,620) (5,058,914)
Administrative Expenses - (82,323) (44,608) (105,594)
Other Miscellaneous Income/(Expense)- - - -
Net Change in Fiduciary Net Position 9,506,869 (283,069) (1,674,776) 5,920,280
Plan Fiduciary Net Position - Beginning 63,970,749 73,477,618 73,194,551 71,519,775
Plan Fiduciary Net Position - Ending (b)73,477,618$ 73,194,549 71,519,775 77,440,055
Plan Net Position Liability - Ending (a) - (b)20,610,142$ 23,516,987 28,783,588 32,661,161
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 78.09%75.68%71.30%70.34%
Covered Payroll 10,373,075$ 10,272,463 10,938,986 11,566,248
Plan Net Pension Liability as a Percentage of Covered Payroll 198.69%228.93%263.13%282.38%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only eight years are presented.
Notes to Schedule:
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.
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.
CITY OF POWAY
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Last 10 Years*
Miscellaneous Plan
97
6/30/2018 6/30/2019 6/30/2020 6/30/2021
1,801,815 1,869,509 1,919,815 1,880,665
7,769,440 8,226,054 8,411,998 8,750,527
1,018,162 2,664,769 (1,093,882) 1,131,639
(586,664) - - -
(5,540,276) (6,227,010) (6,625,427) (6,793,001)
4,462,477 6,533,322 2,612,504 4,969,830
110,101,216 114,563,693 121,097,015 123,709,519
114,563,693 121,097,015 123,709,519 128,679,349
(189) - - -
2,452,303 2,918,133 3,324,148 3,728,403
844,131 871,415 857,470 903,026
6,511,984 5,335,764 4,135,937 19,241,494
(5,540,276) (6,227,011) (6,625,427) (6,793,001)
(120,673) (58,059) (118,699) (85,681)
(229,160) 189 - -
3,918,120 2,840,431 1,573,429 16,994,241
77,440,054 81,358,174 84,198,605 85,772,034
81,358,174 84,198,605 85,772,034 102,766,275
33,205,519 36,898,410 37,937,485 25,913,074
71.02%69.53%69.33%79.86%
11,662,050 12,831,311 12,607,269 12,763,683
284.73%287.57%300.92%203.02%
98
Fiscal Year 6/30/2015 6/30/2016 6/30/2017 6/30/2018
Actuarially determined contribution 1,651,614$ 1,961,662 2,311,817 2,452,302
Contributions in relation to the actuarially
determined contributions (1,651,614) (1,961,662) (2,311,817) (2,452,302)
Contribution deficiency (excess)-$ -$ -$ -$
Covered payroll 10,272,463 10,938,986 11,566,248 11,662,050
Contributions as a percentage of covered payroll 16.08%17.93%19.99%21.03%
Notes to Schedule:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2016, Funding Valuation Report.
Asset Valuation Method
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return
Retirement Age
Mortality
The probabilities of Retirement are based on the 2014 CalPERS Experience
Study for the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience
Study for the period from 1997 to 2015. Pre-retirement and Post-
retirement mortality rates include period from 1997 to 2015. Pre-
retirement and Post-retirement mortality rates include 20 years of
projected mortality improvement using Scale BB published by the Society
of Actuaries.
Miscellaneous Plan
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only eight years are
presented.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021 were derived
from the June 30, 2018, Funding Valuation Report.
Actuarial Value of Assets. For details, see June 30, 2016, Funding Valuation
Report.
7.00% Net of Pension Plan Investment and Administrative Expenses;
includes Inflation.
CITY OF POWAY
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Years*
99
6/30/2019 6/30/2020 6/30/2021 6/30/2022
2,918,133 3,324,147 3,728,403 3,958,965
(2,918,133) (3,324,147) (3,728,403) (33,458,493)
-$ -$ -$ (29,499,528)$
12,831,311 12,607,269 12,763,683 13,473,879
22.74%26.37%29.21%29.38%
100
Employer's
Proportionate
Share of the
Collective Net Pension's Plans
Employer's Employer's Pension Liability Fiduciary Net
Proportion of Proportion as a Percentage Position as a
the Collective Share of the of the Employer's Percentage of
Net Pension Collective Net Employer's Covered the Total
Liability1 Pension Liability Covered Payroll Payroll Pension Liability
6/30/2014 0.14119%8,785,355$ 4,733,734 185.59%81.42%
6/30/2015 0.25032%10,314,344 4,875,746 211.54%79.03%
6/30/2016 0.25757%13,340,151 4,765,209 279.95%74.44%
6/30/2017 0.25775%15,401,317 4,813,604 319.95%74.14%
6/30/2018 0.26652%15,638,347 4,948,089 316.05%73.39%
6/30/2019 0.27260%17,016,976 5,696,517 298.73%73.39%
6/30/2020 0.28155%18,758,073 5,427,653 345.60%73.39%
6/30/2021 0.26676%11,693,283 5,418,184 215.82%68.72%
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.
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.
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).
Measurement
Date
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 eight
years are presented.
Safety Plan
CITY OF POWAY
Required Supplementary Information
Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and
Related Ratios
Last 10 Years*
101
This page intentionally left blank.
102
6/30/2015 6/30/2016 6/30/2017
Actuarially determined contribution 1,159,123$ 1,322,635 1,340,317
Contributions in relation to the actuarially
determined contributions (1,159,123) (1,172,369) (1,340,317)
Contribution deficiency (excess)-$ 150,266$ -$
Covered payroll 4,875,746 4,765,209 4,813,604
Contributions as a percentage of covered payroll 23.77%27.76%27.84%
Notes to Schedule:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2018, Funding Valuation Report.
Asset Valuation Method
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return
Retirement Age
Mortality
The probabilities of Retirement are based on the 2014
CalPERS Experience Study for the period from 1997 to
2015.
CITY OF POWAY
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Years*
Safety Plan
Fiscal Year Ended
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only eight years are
presented.
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 CalPERS
Experience Study and Review of Actuarial Assumptions December 2017.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022 were
derived from the June 30, 2019, Funding Valuation Report.
Market Value of Assets. For details, see June 30, 2018
Funding Valuation Report.
7.00% Net of Pension Plan Investment and
Administrative Expenses; includes Inflation.
The probabilities of mortality are based on the 2017
CalPERS Experience Study for the period from 1997 to
2015. Pre-retirement and Post-retirement mortality rates
include 20 years of projected mortality improvement
using Scale BB published by the Society of Actuaries.
103
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
1,517,719 1,766,069 1,971,402 2,186,412 2,377,145
(1,517,719) (1,766,069) (1,971,402) (2,186,412) (16,225,745)
-$ -$ -$ -$ (13,848,600)$
4,948,089 5,696,517 5,427,653 5,418,184 5,505,282
30.67%31.00%36.32%40.35%43.18%
104
Measurement Date 6/30/2015 6/30/2016 6/30/2017 6/30/2018
TOTAL PENSION LIABILITY
Service Cost 252,845$ 253,408 235,041 228,468
Interest 1,071,102 1,117,733 1,148,044 1,191,080
Effect of plan changes - - - -
Effect of economic/demographic gains or losses - 32,923 (231,575) 52,208
Effect of assumptions changes or inputs - - - -
Benefit payments (628,101) (689,668) (753,594) (876,349)
Net Change in Total Pension Liability 695,846 714,396 397,916 595,407
Total Pension Liability - Beginning 15,357,354 16,053,200 16,767,596 17,165,512
Total Pension Liability - Ending (a)16,053,200$ 16,767,596 17,165,512 17,760,919
PLAN FIDUCIARY NET POSITION
Contributions - Employer 1,302,085$ 1,379,421 3,846,093 1,560,917
Net Investment Income 205,418 (43,672) 1,332,806 1,062,788
Benefit Payments, Including Refunds of
Employee Contributions (628,101) (689,668) (753,594) (876,349)
Administrative Expenses (18,030) (18,906) (24,614) (25,431)
Net Change in Fiduciary Net Position 861,372 627,175 4,400,691 1,721,925
Plan Fiduciary Net Position - Beginning 8,451,533 9,312,905 9,940,080 14,340,771
Plan Fiduciary Net Position - Ending (b)9,312,905$ 9,940,080 14,340,771 16,062,696
Plan Net Position Liability (asset) - Ending (a) - (b)6,740,295$ 6,827,516 2,824,741 1,698,223
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 58.01%59.28%83.54%90.44%
Covered Payroll 8,347,917$ 7,653,837 7,041,971 6,666,563
Plan Net Pension Liability as a Percentage
of Covered Payroll 80.74%89.20%40.11%25.47%
Notes to Schedule:
In 2019, the accounting discount rate reduced from 7.00% to 6.50%.
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.
Changes in Benefit Terms: None
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only eight years are presented.
CITY OF POWAY
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Last 10 Years*
Retirement Enhancement Plan
105
6/30/2019 6/30/2020 6/30/2021 6/30/2022
227,611 171,732 159,613 137,242
1,138,559 1,245,453 1,288,577 1,315,323
- - - -
382,609 368,850 155,191 39,664
973,111 - - -
(959,590) (1,085,388) (1,136,314) (1,203,831)
1,762,300 700,647 467,067 288,398
17,760,919 19,523,219 20,223,866 20,690,933
19,523,219 20,223,866 20,690,933 20,979,331
866,896 970,122 1,090,398 1,491,927
1,002,486 416,083 4,539,010 (3,109,657)
(959,590) (1,085,388) (1,136,314) (1,203,831)
(25,748) (26,853) (37,980) (33,101)
884,044 273,964 4,455,114 (2,854,662)
16,062,696 16,946,740 17,220,704 21,675,818
16,946,740 17,220,704 21,675,818 18,821,156
2,576,479 3,003,162 (984,885) 2,158,175
86.80%85.15%104.76%89.71%
5,323,333 4,841,056 4,518,343 3,992,451
48.40%62.04%-21.80%54.06%
106
Contribution in
Relation to the Contributions as
Contractually Contractually Contribution a Percentage of
Determined Determined Deficiency Employer's Covered
Fiscal Year Contributions Contributions (Excess)Covered Payroll Payroll
6/30/2015 1,298,155$ (1,302,085) (3,930) 7,807,232 16.68%
6/30/2016 1,335,335 (1,379,421) (44,086) 7,653,837 18.02%
6/30/2017 1,320,199 (3,846,093) (2,525,894) 7,041,971 54.62%
6/30/2018 1,427,809 (1,560,917) (133,108) 6,666,563 23.41%
6/30/2019 813,314 (866,896) (53,582) 5,276,686 16.43%
6/30/2020 794,810 (970,122) (175,312) 4,841,056 20.04%
6/30/2021 1,019,979 (1,090,398) (70,419) 4,518,343 24.13%
6/30/2022 1,214,578 (1,491,927) (277,349) 3,992,451 37.37%
Notes to Schedule:
Valuation Timing
Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Inflation
Salary Increases Varies by years of Service
Cost of Living Adjustments 2.00%
Investment Rate of Return 6.50%
Payroll Growth 2.75%
Withdrawal/Disability
Retirement Age
Mortality
Maximum Benefits and Salary
Family Composition
Form of Payment Single Life Annuity
Actuarially determined contribution rates are calculated as of June 30, 2021, and are applied the
following fiscal year.
Consistent with Non-Industrial rates used to value Miscellaneous Agency CalPERS Pension Plans.
The retirement rates are consistent with those used to value the Miscellaneous CalPERS 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.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were from the June 30, 2021
actuarial valuation.
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only eight years are presented.
Pre-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous CalPERS
Pension Plans.
Post-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous CalPERS
Pension Plans.
85%of active members are assumed 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.
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%
Salary used in the calculation of final average compensation is subject to the limitations of IRC
Section 401(a)(17). The limit is assumed to increase 2.50% per annum
Retirement Enhancement Plan
CITY OF POWAY
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Years*
107
This page intentionally left blank.
108
SUPPLEMENTARY
INFORMATION
109
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.
110
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.
111
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).
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 was maintained intact until 2006.
Interest income must also be used to finance such recreational purposes.
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.
CAPITAL PROJECTS FUNDS
Park Improvement Fund – Used to account for the financing and construction of park facilities
throughout the City.
Community Benefits Fund – Used to account for significant streetscape and mobility improvements
such as lane restriping, median and sidewalk enhancements, additional traffic signal and pedestrian
crossings, undergrounding utilities, and parklets among other improvements on Poway Road.
Street Improvement Fund – Used 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.
112
CITY OF POWAY
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2022
AB 939
800 MHz Integrated
Fire Communication Gas Miscellaneous Waste
Protection System Tax Drainage Grants Management
ASSETS
Cash and investments -$ 110,512 2,269,624 4,206,661 416,619 679,241
Receivables:
Accounts - - - - 46,000 -
Interest - - 92,271 - - 57,042
Due from other governments - - - - 30,178 -
Advances to fiduciary funds - - - 426,085 - -
Restricted assets:
Cash and investments with
fiscal agents - - - - - -
Total assets -$ 110,512 2,361,895 4,632,746 492,797 736,283
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable -$ - 282,985 38,175 575 48,525
Accrued liabilities - - 12,152 10,975 - -
Due to other funds - 138,887 - - 42,944 -
Deposits - - - - - -
Unearned revenues - - 200 11,825 16,180 -
Total liabilities - 138,887 295,337 60,975 59,699 48,525
Deferred inflows of resources:
Unavailable revenue - - - - - -
Total deferred inflows of resources - - - - - -
FUND BALANCES (DEFICIT)
Restricted - - 2,066,558 4,571,771 433,098 687,758
Committed - - - - - -
Unassigned - (28,375) - - - -
Total fund balances (deficit)- (28,375) 2,066,558 4,571,771 433,098 687,758
Total liabilities, deferred inflows of
resources and fund balances -$ 110,512 2,361,895 4,632,746 492,797 736,283
Special Revenue Funds
113
Regional Fire
Community Transportation SB 1186 Excess Arterial Protection
Development Development Disabled SAFE Traffic Impact
Block Grant Act Proposition A Access Law Reserve Mitigation Fees
- 364,182 156,989 36,032 159,985 877,665 200,906
- - - - - - -
- - - - - - -
- 28,002 - - - - -
- - - - - - -
- - - - - - -
- 392,184 156,989 36,032 159,985 877,665 200,906
7,674 - - - - - -
- - - 170 - - -
18,368 - 153,918 - - - -
- - - - - - -
- - - - - - -
26,042 - 153,918 170 - - -
- - - - - - -
- - - - - - -
- 392,184 3,071 35,862 159,985 877,665 200,906
- - - - - - -
(26,042) - - - - - -
(26,042) 392,184 3,071 35,862 159,985 877,665 200,906
- 392,184 156,989 36,032 159,985 877,665 200,906
Special Revenue Funds
114
City of Poway
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2022
Abandoned
BEGIN Housing Vehicle Habitat Maintenance
Program In-lieu Fees In-lieu Districts
ASSETS
Cash and investments 12,284$ 239,722 345,286 686,917 9,048,521
Receivables:
Accounts - - - - -
Interest - - - - 730
Due from other governments - - - - -
Advances to fiduciary funds - - - - -
Restricted assets:
Cash and investments with
fiscal agents - - - - -
Total assets 12,284$ 239,722 345,286 686,917 9,049,251
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable -$ - - - 205,215
Accrued liabilities - - - - 30,791
Due to other funds - - - - -
Deposits - - - - -
Unearned revenues - - - - -
Total liabilities - - - - 236,006
Deferred inflows of resources:
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES (deficit)
Restricted 12,284 239,722 345,286 686,917 8,813,245
Committed - - - - -
Unassigned - - - - -
Total fund balances (deficit)12,284 239,722 345,286 686,917 8,813,245
Total liabilities, deferred inflows of
resources and fund balances 12,284$ 239,722 345,286 686,917 9,049,251
Special Revenue Funds
115
Debt
Service
Fund
Total
Mary City of Poway Non-major
Road Patricia Debt Park Community Street Municipal Governmental
Repair Ross Trust Service Improvement Benefits Improvement Improvement Funds
778,643 101,031 254,621 1,780,395 106,256 2,128,410 103,603 25,064,105
- - - - - - - 46,000
- - - - - - - 150,043
169,999 - - - - - - 228,179
- - - - - - - 426,085
- - 596,988 - - - - 596,988
948,642 101,031 851,609 1,780,395 106,256 2,128,410 103,603 26,511,400
52 - - - - - - 583,201
- - - - - - - 54,088
- - 132,041 - - - - 486,158
- - - - - - 90,512 90,512
- - - - - - - 28,205
52 - 132,041 - - - 90,512 1,242,164
- - - - - - - -
- - - - - - - -
948,590 101,031 719,568 1,780,395 106,256 2,128,410 13,091 25,323,653
- - - - - - - -
- - - - - - - (54,417)
948,590 101,031 719,568 1,780,395 106,256 2,128,410 13,091 25,269,236
948,642 101,031 851,609 1,780,395 106,256 2,128,410 103,603 26,511,400
Special Revenue Funds Capital Projects Funds
116
CITY OF POWAY
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
800 MHz
Fire Communication Gas Miscellaneous
Protection System Tax Drainage Grants
REVENUES
Taxes 636,952$ 196,920 1,167,523 1,576,368 -
Intergovernmental - - - - 371,767
Use (loss) of money and property - (2,847) 5,394 30,099 541
Developer fees - - - 68,921 -
Assessments levied - - - - -
Other revenues - - 15,219 339 -
Total revenues 636,952 194,073 1,188,136 1,675,727 372,308
EXPENDITURES
Current:
Public safety - 26 - - -
Public works - - 523,998 1,106,406 -
Capital outlay - - 229,162 45,988 137,493
Debt service:
Principal - 134,498 - - -
Interest and fiscal charges - 19,839 - - -
Total expenditures - 154,363 753,160 1,152,394 137,493
Excess (deficiency) of revenues
over (under) expenditures 636,952 39,710 434,976 523,333 234,815
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfer out (642,411) - - - (156,727)
Total other financing sources (uses)(642,411) - - - (156,727)
Net change in fund balances (5,459) 39,710 434,976 523,333 78,088
Fund balances (deficit), beginning of year 5,459 (68,085) 1,631,582 4,048,438 355,010
Fund balances (deficit), end of year -$ (28,375) 2,066,558 4,571,771 433,098
For the year ended June 30, 2022
Special Revenue Funds
117
AB 939 Regional Fire
Integrated Community Transportation SB 1186 Excess Arterial Protection
Waste Development Development Disabled SAFE Traffic Impact
Management Block Grant Act Proposition A Access Law Reserve Mitigation Fees
- - - 741,117 - - - -
36,643 362,373 28,002 - - - - -
1,883 - 999 630 93 426 2,098 525
- - - - - - 279,364 12,728
- - - - - - - -
230,928 - - - 4,561 - - -
269,454 362,373 29,001 741,747 4,654 426 281,462 13,253
- - - - - - - -
- - 3,744 732,721 - - - -
306,353 128,912 32,331 312,752 - - 1,740 -
- - - - - - - -
- - - - - - - -
306,353 128,912 36,075 1,045,473 - - 1,740 -
(36,899) 233,461 (7,074) (303,726) 4,654 426 279,722 13,253
- - - - - - - -
- - - - - - - -
- - - - - - - -
(36,899) 233,461 (7,074) (303,726) 4,654 426 279,722 13,253
724,657 (259,503) 399,258 306,797 31,208 159,559 597,943 187,653
687,758 (26,042) 392,184 3,071 35,862 159,985 877,665 200,906
Special Revenue Funds
118
CITY OF POWAY
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2022
Abandoned
BEGIN Housing Vehicle Habitat Maintenance
Program In-lieu Fees In-lieu Districts
REVENUES
Taxes -$ - - - 519,677
Intergovernmental - - - - -
Use (loss) of money and property 33 611 918 10,177 24,083
Developer fees - 25,250 - 61,442 -
Assessments levied - - - - 2,031,459
Other revenues - - - - 13,925
Total revenues 33 25,861 918 71,619 2,589,144
EXPENDITURES
Current:
Public safety - - - - -
Public works - - - - 2,188,010
Capital outlay - - - - 653,572
Debt service:
Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - - - - 2,841,582
Excess (deficiency) of revenues
over (under) expenditures 33 25,861 918 71,619 (252,438)
OTHER FINANCING SOURCES
Transfers in - - - - 426,826
Transfer out - - - - -
Total other financing sources (uses)- - - - 426,826
Net change in fund balances 33 25,861 918 71,619 174,388
Fund balances (deficit), beginning of year 12,251 213,861 344,368 615,298 8,638,857
Fund balances (deficit), end of year 12,284$ 239,722 345,286 686,917 8,813,245
Special Revenue Funds
119
Debt Service
Fund
Total
Mary City of Poway Non-major
Road Patricia Debt Park Community Street Municipal Governmental
Repair Ross Trust Service Improvement Benefits Improvement Improvement Funds
985,239 - - - - - - 5,823,796
- - - - - - - 798,785
1,605 269 284,860 4,353 256 5,661 11 372,678
- - - 471,112 106,000 150 - 1,024,967
- - - - - - - 2,031,459
- - - - - - 8,827 273,799
986,844 269 284,860 475,465 106,256 5,811 8,838 10,325,484
- - - - - - - 26
29,698 - - - - - - 4,584,577
774,010 - - - - - - 2,622,313
- - 855,000 - - - - 989,498
- - 278,534 - - - - 298,373
803,708 - 1,133,534 - - - - 8,494,787
183,136 269 (848,674) 475,465 106,256 5,811 8,838 1,830,697
- - 931,310 - - - - 1,358,136
- - (68,635) - - - - (867,773)
- - 862,675 - - - - 490,363
183,136 269 14,001 475,465 106,256 5,811 8,838 2,321,060
765,454 100,762 705,567 1,304,930 - 2,122,599 4,253 22,948,176
948,590 101,031 719,568 1,780,395 106,256 2,128,410 13,091 25,269,236
Capital Projects FundsSpecial Revenue Funds
120
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 636,000$ 636,000 636,952 952
Total revenues 636,000 636,000 636,952 952
OTHER FINANCING (USES)
Transfers out (636,000) (636,000) (642,411) (6,411)
Total other financing (uses)(636,000) (636,000) (642,411) (6,411)
Net change in fund balance - - (5,459) (5,459)
Fund balance, beginning of year 5,459 5,459 5,459 -
Fund balance, end of year 5,459$ 5,459 - (5,459)
Budget Amounts
CITY OF POWAY
Fire Protection Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
121
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 136,000$ 136,000 196,920 60,920
Use (loss) of money and property 559 559 (2,847) (3,406)
Total revenues 136,559 136,559 194,073 57,514
EXPENDITURES
Current:
Public safety - - 26 (26)
Debt service:
Principal 134,498 134,498 134,498 -
Interest and fiscal charges 19,839 19,839 19,839 -
Total expenditures 154,337 154,337 154,363 (26)
Net change in fund balance (17,778) (17,778) 39,710 57,488
Fund balance (deficit), beginning of year (68,085) (68,085) (68,085) -
Fund balance (deficit), end of year (85,863)$ (85,863) (28,375) 57,488
Budget Amounts
CITY OF POWAY
800 MHz Communication System Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
122
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 1,296,377$ 1,296,377 1,167,523 (128,854)
Use of money and property 18,100 18,100 5,394 (12,706)
Other revenues - - 15,219 15,219
Total revenues 1,314,477 1,314,477 1,188,136 (126,341)
EXPENDITURES
Current:
Public works 2,560,540 3,506,135 523,998 2,982,137
Capital outlay 300,000 300,000 229,162 70,838
Total expenditures 2,860,540 3,806,135 753,160 3,052,975
Net change in fund balance (1,546,063) (2,491,658) 434,976 2,926,634
Fund balance, beginning of year 1,631,582 1,631,582 1,631,582 -
Fund balance, end of year 85,519$ (860,076) 2,066,558 2,926,634
Budget Amounts
CITY OF POWAY
Gas Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
123
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 1,424,910$ 1,424,910 1,576,368 151,458
Use of money and property 76,296 76,296 30,099 (46,197)
Developer fees 23,009 23,009 68,921 45,912
Other revenues - - 339 339
Total revenues 1,524,215 1,524,215 1,675,727 151,512
EXPENDITURES
Current:
Public works 1,272,073 1,429,940 1,106,406 323,534
Capital outlay 730,000 1,072,651 45,988 1,026,663
Total expenditures 2,002,073 2,502,591 1,152,394 1,350,197
Net change in fund balance (477,858) (978,376) 523,333 1,501,709
Fund balance, beginning of year 4,048,438 4,048,438 4,048,438 -
Fund balance, end of year 3,570,580$ 3,070,062 4,571,771 1,501,709
Budget Amounts
CITY OF POWAY
Drainage Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
124
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental 208,812$ 208,812 371,767 162,955
Use of money and property 4,320 4,320 541 (3,779)
Total revenues 213,132 213,132 372,308 159,176
EXPENDITURES
Current:
General government - 8,287 - 8,287
Capital outlay 53,812 879,678 137,493 742,185
Total expenditures 53,812 887,965 137,493 750,472
OTHER FINANCING USES
Transfers out (155,000) (155,000) (156,727) (1,727)
Total other financing uses (155,000) (155,000) (156,727) (1,727)
Net change in fund balance 4,320 (829,833) 78,088 907,921
Fund balance, beginning of year 355,010 355,010 355,010 -
Fund balance, end of year 359,330$ (474,823) 433,098 907,921
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Miscellaneous Grants Special Revenue Fund
Year Ended June 30, 2022
Budget Amounts
125
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental 35,000$ 35,000 36,643 1,643
Use of money and property 16,060 16,060 1,883 (14,177)
Other revenue 198,000 198,000 230,928 32,928
Total revenues 249,060 249,060 269,454 20,394
EXPENDITURES
Capital outlay 335,000 381,569 306,353 75,216
Total expenditures 335,000 381,569 306,353 75,216
Net change in fund balance (85,940) (132,509) (36,899) 95,610
Fund balance, beginning of year 724,657 724,657 724,657 -
Fund balance, end of year 638,717$ 592,148 687,758 95,610
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, 2022
Budget Amounts
126
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental 210,351$ 210,351 362,373 152,022
Total revenues 210,351 210,351 362,373 152,022
EXPENDITURES
Current:
Development services 210,351 324,848 128,912 195,936
Total expenditures 210,351 324,848 128,912 195,936
Net change in fund balance - (114,497) 233,461 347,958
Fund balance (deficit), beginning of year (259,503) (259,503) (259,503) -
Fund balance (deficit), end of year (259,503)$ (374,000) (26,042) 347,958
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, 2022
Budget Amounts
127
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 7,860$ 7,860 999 (6,861)
Total revenues 7,860 7,860 29,001 21,141
EXPENDITURES
Current:
Public works - - 3,744 (3,744)
Capital outlay - 298,292 32,331 265,961
Total expenditures - 298,292 36,075 262,217
Net change in fund balance 7,860 (290,432) (7,074) 283,358
Fund balance, beginning of year 399,258 399,258 399,258 -
Fund balance, end of year 407,118$ 108,826 392,184 283,358
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, 2022
Budget Amounts
128
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 2,568,233$ 2,568,233 741,117 (1,827,116)
Use of money and property 8,660 8,660 630 (8,030)
Total revenues 2,576,893 2,576,893 741,747 (1,835,146)
EXPENDITURES
Current:
Public works - - 732,721 (732,721)
Capital outlay 1,550,700 2,606,438 312,752 2,293,686
Total expenditures 1,550,700 2,606,438 1,045,473 1,560,965
Net change in fund balance 1,026,193 (29,545) (303,726) (274,181)
Fund balance, beginning of year 306,797 306,797 306,797 -
Fund balance, end of year 1,332,990$ 277,252 3,071 (274,181)
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Proposition A Special Revenue Fund
Year Ended June 30, 2022
Budget Amounts
129
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 390$ 390 93 (297)
Other revenue 1,050 1,050 4,561 3,511
Total revenues 1,440 1,440 4,654 3,214
Net change in fund balance 1,440 1,440 4,654 3,214
Fund balance, beginning of year 31,208 31,208 31,208 -
Fund balance, end of year 32,648$ 32,648 35,862 3,214
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, 2022
Budget Amounts
130
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 3,240$ 3,240 426 (2,814)
Total revenues 3,240 3,240 426 (2,814)
EXPENDITURES
Current:- 141,872 - 141,872
Capital outlay
Total expenditures - 141,872 - 141,872
Net change in fund balance 3,240 (138,632) 426 139,058
Fund balance, beginning of year 159,559 159,559 159,559 -
Fund balance, end of year 162,799$ 20,927 159,985 139,058
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, 2022
Budget Amounts
131
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 7,470$ 7,470 2,098 (5,372)
Developer fees 147,588 147,588 279,364 131,776
Total revenues 155,058 155,058 281,462 126,404
EXPENDITURES
Capital outlay 513,000 609,575 1,740 607,835
Total expenditures 513,000 609,575 1,740 607,835
Net change in fund balance (357,942) (454,517) 279,722 734,239
Fund balance, beginning of year 597,943 597,943 597,943 -
Fund balance, end of year 240,001$ 143,426 877,665 734,239
Budget Amounts
CITY OF POWAY
Regional Arterial Traffic Mitigation Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
132
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 3,050$ 3,050 525 (2,525)
Developer fees 9,996 9,996 12,728 2,732
Total revenues 13,046 13,046 13,253 207
Net change in fund balance 13,046 13,046 13,253 207
Fund balance, beginning of year 187,653 187,653 187,653 -
Fund balance, end of year 200,699$ 200,699 200,906 207
Budget Amounts
CITY OF POWAY
Fire Protection Impact Fees Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
133
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 120$ 120 33 (87)
Total revenues 120 120 33 (87)
Net change in fund balance 120 120 33 (87)
Fund balance, beginning of year 12,251 12,251 12,251 -
Fund balance, end of year 12,371$ 12,371 12,284 (87)
Budget Amounts
CITY OF POWAY
BEGIN Program Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
134
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 3,430$ 3,430 611 (2,819)
Developer fees 52,500 52,500 25,250 (27,250)
Total revenues 55,930 55,930 25,861 (30,069)
EXPENDITURES
Capital outlay 136,719 136,719 - 136,719
Total expenditures 136,719 136,719 - 136,719
Net change in fund balance (80,789) (80,789) 25,861 106,650
Fund balance, beginning of year 213,861 213,861 213,861 -
Fund balance, end of year 133,072$ 133,072 239,722 106,650
Budget Amounts
CITY OF POWAY
Housing In-Lieu Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
135
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 7,000$ 7,000 918 (6,082)
Total revenues 7,000 7,000 918 (6,082)
Net change in fund balance 7,000 7,000 918 (6,082)
Fund balance, beginning of year 344,368 344,368 344,368 -
Fund balance, end of year 351,368$ 351,368 345,286 (6,082)
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, 2022
Budget Amounts
136
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 19,750$ 19,750 10,177 (9,573)
Developer fees 17,000 17,000 61,442 44,442
Total revenues 36,750 36,750 71,619 34,869
EXPENDITURES
Capital outlay - 22,888 - 22,888
Total expenditures - 22,888 - 22,888
Net change in fund balance 36,750 13,862 71,619 57,757
Fund balance, beginning of year 615,298 615,298 615,298 -
Fund balance, end of year 652,048$ 629,160 686,917 57,757
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, 2022
Budget Amounts
137
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 496,137$ 496,137 519,677 23,540
Use of money and property 161,020 161,020 24,083 (136,937)
Assessment levied 2,048,196 2,048,196 2,031,459 (16,737)
Other revenue - - 13,925 13,925
Total revenues 2,705,353 2,705,353 2,589,144 (116,209)
EXPENDITURES
Current:
Public works 2,800,513 3,066,489 2,188,010 878,479
Capital outlay 250,000 1,353,523 653,572 699,951
Total expenditures 3,050,513 4,420,012 2,841,582 1,578,430
OTHER FINANCING SOURCES
Transfers in 426,826 426,826 426,826 -
Total other financing sources 426,826 426,826 426,826 -
Net change in fund balance 81,666 (1,287,833) 174,388 1,462,221
Fund balance, beginning of year 8,638,857 8,638,857 8,638,857 -
Fund balance, end of year 8,720,523$ 7,351,024 8,813,245 1,462,221
Budget Amounts
CITY OF POWAY
Maintenance Districts Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
138
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 983,489$ 983,489 985,239 1,750
Use of money and property 2,910 2,910 1,605 (1,305)
Total revenues 986,399 986,399 986,844 445
EXPENDITURES
Current:
Public works - - 29,698 (29,698)
Capital outlay 983,489 983,489 774,010 209,479
Total expenditures 983,489 983,489 803,708 179,781
Net change in fund balance 2,910 2,910 183,136 180,226
Fund balance, beginning of year 765,454 765,454 765,454 -
Fund balance, end of year 768,364$ 768,364 948,590 180,226
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Road Repair Special Revenue Fund
Year Ended June 30, 2022
Budget Amounts
139
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 2,040$ 2,040 269 (1,771)
Total revenues 2,040 2,040 269 (1,771)
Net change in fund balance 2,040 2,040 269 (1,771)
Fund balance, beginning of year 100,762 100,762 100,762 -
Fund balance, end of year 102,802$ 102,802 101,031 (1,771)
Budget Amounts
CITY OF POWAY
Mary Patricia Ross Trust Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
140
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 295,860$ 295,860 284,860 (11,000)
Total revenues 295,860 295,860 284,860 (11,000)
EXPENDITURES
Debt service:
Principal 855,000 855,000 855,000 -
Interest and fiscal charges 350,058 350,627 278,534 72,093
Total expenditures 1,205,058 1,205,627 1,133,534 72,093
OTHER FINANCING SOURCES (USES)
Transfers in 936,108 936,108 931,310 (4,798)
Transfers out (4,620) (4,620) (68,635) (64,015)
Total other financing sources (uses)931,488 931,488 862,675 (68,813)
Net change in fund balance 22,290 21,721 14,001 (7,720)
Fund balance, beginning of year 705,567 705,567 705,567 -
Fund balance, end of year 727,857$ 727,288 719,568 (7,720)
Budget Amounts
CITY OF POWAY
City Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
141
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 17,480$ 17,480 4,353 (13,127)
Developer fees 421,610 421,610 471,112 49,502
Total revenues 439,090 439,090 475,465 36,375
Net change in fund balance 439,090 439,090 475,465 36,375
Fund balance, beginning of year 1,304,930 1,304,930 1,304,930 -
Fund balance, end of year 1,744,020$ 1,744,020 1,780,395 36,375
Budget Amounts
CITY OF POWAY
Park Improvement Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
142
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property -$ - 256 256
Developer fees - - 106,000 106,000
Total revenues - - 106,256 106,256
Net change in fund balance - - 106,256 106,256
Fund balance, beginning of year - - - -
Fund balance, end of year -$ - 106,256 106,256
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Community Benefits Capital Projects Fund
Year Ended June 30, 2022
Budget Amounts
143
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 31,180$ 31,180 5,661 (25,519)
Developer fees 138,454 138,454 150 (138,304)
Total revenues 169,634 169,634 5,811 (163,823)
Net change in fund balance 169,634 169,634 5,811 (163,823)
Fund balance, beginning of year 2,122,599 2,122,599 2,122,599 -
Fund balance, end of year 2,292,233$ 2,292,233 2,128,410 (163,823)
Budget Amounts
CITY OF POWAY
Street Improvement Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
144
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 80$ 80 11 (69)
Total revenues 80 80 8,838 8,758
EXPENDITURES
Capital outlay - - - -
Total expenditures - - - -
Net change in fund balance 80 80 8,838 8,758
Fund balance, beginning of year 4,253 4,253 4,253 -
Fund balance, end of year 4,333$ 4,333 13,091 8,758
CITY OF POWAY
Budget Amounts
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2022
Municipal Improvements Capital Projects Fund
145
Statistical Section
146
This page intentionally left blank.
147
STATISTICAL SECTION
This part of the City of Poway's annual comprehensive financial report presents detailed information as
context for understanding the information in the financial statements, note disclosures, and required
supplementary information.
CONTENTS
Page
Financial Trends
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity
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 annual
comprehensive financial reports for the relevant year.
149
159
These schedules contain information to help the reader assess the government's most
significant local revenue sources.
Debt Capacity 164
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.
170
173
148
CITY OF POWAY
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2022 2021 2020 2019
Governmental activities
Net investment in capital assets 113,445,694$ 114,890,993 108,541,416 112,250,350
Restricted 30,144,735 26,451,907 25,225,622 22,030,955
Unrestricted - as restated 35,681,672 25,672,610 34,897,989 39,587,799
Total governmental activities net position 179,272,101 167,015,510 168,665,027 173,869,104
Business-type activities
Net investment in capital assets 21,736,424 30,061,389 30,936,131 31,143,299
Restricted - - - -
Unrestricted - as restated 36,683,923 30,270,417 28,113,570 31,593,881
Total business-type activities net position 58,420,347 60,331,806 59,049,701 62,737,180
Primary government
Net investment in capital assets 135,182,118 144,952,382 139,477,547 143,393,649
Restricted 30,144,735 26,451,907 25,225,622 22,030,955
Unrestricted - as restated 72,365,595 55,943,027 63,011,559 71,181,680
Total primary government net position 237,692,448$ 227,347,316 227,714,728 236,606,284
Note:
The City restated the Unrestricted Net Position as of June 30, 2014 for the implementation of GASB 68.
Fiscal Year
149
2018 2017 2016 2015 2014 2013
108,494,835 82,020,900 83,171,720 86,341,264 90,442,061 94,657,067
20,641,475 20,453,766 20,846,798 27,543,292 28,126,711 25,637,627
41,227,106 41,716,900 40,985,170 38,671,488 33,998,725 63,928,726
170,363,416 144,191,566 145,003,688 152,556,044 152,567,497 184,223,420
32,118,064 32,941,440 34,817,565 36,827,442 38,731,821 40,746,468
- - - 272,301 279,579 279,604
31,108,285 26,735,432 21,537,274 26,130,925 26,867,660 33,305,899
63,226,349 59,676,872 56,354,839 63,230,668 65,879,060 74,331,971
140,612,899 114,962,340 117,989,285 123,168,706 129,173,882 135,403,535
20,641,475 20,453,766 20,846,798 27,815,593 28,406,290 25,917,231
72,335,391 68,452,332 62,522,444 64,802,413 60,866,385 97,234,625
233,589,765 203,868,438 201,358,527 215,786,712 218,446,557 258,555,391
Fiscal Year
150
CITY OF POWAY
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2022 2021 2020 2019
Expenses
Governmental Activities:
General government 7,194,352$ 7,817,836 5,630,649 7,352,494
Public safety 26,534,269 29,504,602 29,324,572 26,562,602
Public works 9,817,864 13,889,911 14,704,110 13,031,776
Development services 7,791,058 7,625,662 9,143,279 6,097,846
Community services 7,465,888 5,812,376 6,593,797 6,445,379
Interest and fiscal charges 670,976.00 362,224 387,747 407,214
Total governmental activities 59,474,407 65,012,611 65,784,154 59,897,311
Business-type activities:
Water 30,924,172 27,535,324 25,062,142 24,026,914
Sewer 13,642,182 10,536,979 12,999,256 10,141,290
Total business-type activities 44,566,354 38,072,303 38,061,398 34,168,204
Total primary government expenses 104,040,761$ 103,084,914 103,845,552 94,065,515
Program revenues
Governmental Activities:
Charges for services:
General Government 1,844,709$ 1,810,549 1,937,084 1,766,808
Public Safety 2,480,786 2,197,208 1,961,348 1,810,431
Public Works 3,088,137 3,021,750 3,430,815 3,157,508
Development services 2,880,318 2,475,724 2,377,564 2,175,062
Community services 3,965,132 2,230,065 2,513,457 3,081,321
Operating grants and contributions 11,962,047 6,785,703 3,528,190 3,599,420
Capital grants and contributions 471,112 371,231 109,207 1,808,484
Total governmental activities 26,692,241 18,892,230 15,857,665 17,399,034
Business-type activities:
Charges for services:
Water 29,690,399 28,740,594 24,748,591 22,984,400
Sewer 11,982,222 9,443,436 8,632,712 8,737,411
Operating grants and contributions 151,314 91,825 91,825 -
Capital grants and contributions - - - -
Total business-type activities 41,823,935 38,275,855 33,473,128 31,721,811
Total primary government revenues 68,516,176$ 57,168,085 49,330,793 49,120,845
Net (expense)/revenue
Governmental activities (32,782,166)$ (46,120,381) (49,926,489) (42,498,277)
Business-type activities (2,742,419) 203,552 (4,588,270) (2,446,393)
Total primary government net expense (35,524,585)$ (45,916,829) (54,514,759) (44,944,670)
Fiscal Year
151
2018 2017 2016 2015 2014 2013
8,048,190 7,897,624 5,131,272 5,196,033 5,227,809 5,981,436
25,139,954 22,939,218 22,347,525 21,500,327 20,906,884 20,213,645
15,818,102 13,424,529 12,381,234 11,595,286 11,863,623 12,283,876
4,793,032 4,122,212 3,821,920 3,664,378 3,815,282 3,745,329
7,372,710 7,695,548 7,197,816 5,843,807 6,115,485 5,063,022
429,617 443,901 505,811 481,905 509,206 (249,757)
61,601,605 56,523,032 51,385,578 48,281,736 48,438,289 47,037,551
25,502,524 21,005,264 21,502,464 22,349,556 23,314,233 22,367,122
8,797,837 8,564,971 8,730,955 9,451,529 9,434,739 10,069,336
34,300,361 29,570,235 30,233,419 31,801,085 32,748,972 32,436,458
95,901,966 86,093,267 81,618,997 80,082,821 81,187,261 79,474,009
1,963,830 1,792,407 1,916,069 1,976,982 1,816,618 1,609,574
2,171,552 2,067,306 1,884,369 1,759,543 1,908,337 2,155,607
2,740,562 2,727,104 2,733,956 2,699,095 2,753,917 2,738,196
1,975,450 1,648,388 1,780,160 1,558,945 1,534,304 1,384,543
2,595,229 2,862,789 2,625,260 2,570,423 2,436,024 2,243,495
3,841,821 2,616,884 2,913,411 2,621,885 3,076,481 3,939,184
198,584 270,802 120,271 90,379 66,168 99,831
15,487,028 13,985,680 13,973,496 13,277,252 13,591,849 14,170,430
25,583,581 21,450,064 18,590,894 20,629,080 23,381,953 22,207,174
8,486,571 8,396,553 8,003,913 7,423,494 7,347,502 7,228,097
- - - - - -
3,589 - - - - -
34,073,741 29,846,617 26,594,807 28,052,574 30,729,455 29,435,271
49,560,769 43,832,297 40,568,303 41,329,826 44,321,304 43,605,701
(46,114,577) (42,537,352) (37,412,082) (35,004,484) (34,846,440) (32,867,121)
(226,620) 276,382 (3,638,612) (3,748,511) (2,019,517) (3,001,187)
(46,341,197) (42,260,970) (41,050,694) (38,752,995) (36,865,957) (35,868,308)
Fiscal Year
152
CITY OF POWAY
Changes in Net Position (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
2022 2021 2020 2019
General revenues and Other
Changes in Net Position
Governmental Activities:
Taxes:
Property taxes 26,360,676$ 25,159,940 24,251,068 23,819,845
Sales taxes 17,959,219 15,952,859 14,185,047 14,774,047
Motor vehicle license tax - - - -
Transient occupancy tax 753,932 403,071 515,633 674,230
Other taxes 890,406 804,462 807,777 2,709,246
Total taxes 45,964,233 42,320,332 39,759,525 41,977,368
Investment earnings (2,205,471) 731,656 3,093,107 2,267,414
Sale/disposal of capital assets (531,796) - - -
Miscellaneous 1,457,229 1,105,949 1,259,020 1,237,072
Transfers 354,562 312,927 610,760 522,111
Extraordinary item - - - -
Total governmental activities 45,038,757 44,470,864 44,722,412 46,003,965
Business-type activities:
Investment earnings 136,733 197,121 1,166,885 1,144,612
Sale/disposal of capital assets (63,380) - -
Miscellaneous 1,112,169 1,194,359 344,666 1,334,723
Transfers (354,562) (312,927) (610,760) (522,111)
Extraordinary Item - - - -
Total business-type activities 830,960 1,078,553 900,791 1,957,224
Total primary government 45,869,717$ 45,549,417 45,623,203 47,961,189
Change in Net Position
Governmental activities 12,256,591$ (1,649,517) (5,204,077) 3,505,688
Business-type activities (1,911,459) 1,282,105 (3,687,479) (489,169)
Total primary government 10,345,132$ (367,412) (8,891,556) 3,016,519
Fiscal Year
153
2018 2017 2016 2015 2014 2013
24,153,826 22,166,004 20,455,287 18,998,523 20,188,541 21,378,147
12,462,528 12,291,613 11,615,867 11,442,003 12,047,687 11,564,572
- - - - - 22,085
654,235 609,306 615,482 573,531 523,112 483,568
3,630,276 3,247,931 3,423,165 3,192,356 2,761,696 1,816,574
40,900,865 38,314,854 36,109,801 34,206,413 35,521,036 35,264,946
1,468,845 1,165,528 1,845,972 1,380,030 1,573,545 1,000,883
- - - (385,253) - -
3,285,592 1,805,482 1,195,244 1,330,954 1,846,762 3,374,664
426,823 439,366 467,591 (1,539,113) 1,425 (36,694)
26,204,302 - (9,758,882) - - -
72,286,427 41,725,230 29,859,726 34,993,031 38,942,768 39,603,799
264,609 102,656 230,982 149,611 217,194 23,733
- - - - - -
3,938,311 3,382,361 1,077,957 1,261,448 82,930 47,583
(426,823) (439,366) (467,591) (310,940) (441,725) (407,588)
- - (4,078,565) - - -
3,776,097 3,045,651 (3,237,217) 1,100,119 (141,601) (336,272)
76,062,524 44,770,881 26,622,509 36,093,150 38,801,167 39,267,527
26,171,850 (812,122) (7,552,356) (11,453) 4,096,328 6,736,678
3,549,477 3,322,033 (6,875,829) (2,648,392) (2,161,118) (3,337,459)
29,721,327 2,509,911 (14,428,185) (2,659,845) 1,935,210 3,399,219
Fiscal Year
154
CITY OF POWAY
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2022 2021 2020 2019
General Fund
Nonspendable 13,738,495$ 13,267,000 12,042,735 15,550,648
Committed 20,441,896 20,393,896 21,233,004 20,961,853
Assigned 12,851,725 16,251,291 24,780,312 22,536,818
Unassigned 15,897,597 9,327,401 6,728,100 7,192,106
Total General Fund 62,929,713 59,239,588 64,784,151 66,241,425
All Other Governmental Funds
Restricted 30,944,055 27,237,226 25,866,759 22,587,652
Unassigned (54,417) (327,588) (54,815) (29,018)
Total all Other Governmental Funds 30,889,638 26,909,638 25,811,944 22,558,634
Total Fund Balance 93,819,351$ 86,149,226 90,596,095 88,800,059
Fiscal Year
155
2018 2017 2016 2015 2014 2013
15,639,036 10,477,915 10,286,955 10,495,426 10,134,007 10,157,087
19,321,583 - - 10,022,691 10,026,079 9,999,309
16,613,992 40,438,366 40,367,436 15,870,595 15,383,344 7,173,822
14,063,706 14,649,159 16,010,227 29,285,138 26,624,039 30,695,920
65,638,317 65,565,440 66,664,618 65,673,850 62,167,469 58,026,138
20,641,475 20,453,766 20,846,798 27,543,292 28,126,711 25,929,921
(15,860) - - - - -
20,625,615 20,453,766 20,846,798 27,543,292 28,126,711 25,929,921
86,263,932 86,019,206 87,511,416 93,217,142 90,294,180 83,956,059
Fiscal Year
156
CITY OF POWAY
Changes In Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2022 2021 2020 2019
Revenues
Taxes 48,858,112$ 45,645,457 41,733,998 41,971,756
Licenses and permits 2,140,086 2,249,668 2,078,662 2,237,766
Intergovernmental 7,514,851 2,561,929 1,782,269 4,016,199
Charges for services 6,102,019 3,893,569 4,056,966 4,394,947
Fines and forfeitures 121,691 109,335 170,527 174,431
Use of money and property (1,947,758) 1,153,513 3,730,562 2,638,552
Developer fees 4,789,988 4,471,246 3,333,550 4,257,642
Assessment levied 2,031,459 1,996,156 1,991,331 1,913,839
Other revenues 2,397,484 591,790 735,669 603,143
Total revenues 72,007,932 62,672,663 59,613,534 62,208,275
Expenditures
Current:
General government 14,392,602 6,021,748 4,189,609 6,165,984
Public safety 41,401,603 27,692,953 26,841,433 25,247,048
Public works 13,626,589 11,080,613 11,827,517 10,796,442
Development services 12,634,077 7,504,194 7,992,456 5,741,072
Community services 10,053,029 5,021,273 5,719,232 5,834,051
Capital outlay 5,477,761 10,340,337 6,777,582 7,249,857
Debt service:
Principal 989,498 835,000 810,000 790,000
Interest and fiscal charges 298,373 374,402 397,941 416,310
Issuance Costs 361,947 - - -
Transfers to fiduciary funds - - - -
Total expenditures 99,235,479 68,870,520 64,555,770 62,240,764
Excess of revenues over (under) expenditures (27,227,547) (6,197,857) (4,942,236) (32,489)
Other Financing Sources (Uses)
Issuance of debt 33,263,175 - - -
Refunding bond activity - net - - - -
Proceeds from sale of capital assets - - 4,560,967 -
Transfers in (out) - net 1,634,497 1,750,988 2,061,298 2,295,513
Total other financing sources 34,897,672 1,750,988 6,622,265 2,295,513
Extraordinary items - - - -
Net change in fund balance 7,670,125$ (4,446,869) 1,680,029 2,263,024
Debt service as a percentage of noncapital
expenditures 1.7%2.1%2.1%2.2%
Fiscal Year
157
2018 2017 2016 2015 2014 2013
40,900,865 38,314,854 36,109,801 34,206,413 35,521,036 35,377,641
2,309,848 2,157,912 2,248,870 2,242,928 2,117,067 2,035,065
2,968,487 2,461,909 2,809,204 2,439,771 2,198,678 3,190,832
2,682,918 2,870,826 2,629,776 2,564,852 2,386,206 1,671,506
150,968 137,772 121,246 135,609 184,855 527,006
1,376,993 1,116,686 1,664,836 1,265,837 1,495,911 2,188,570
5,538,625 4,339,215 4,317,628 4,013,227 4,806,170 4,029,232
1,900,026 1,919,533 1,926,988 1,903,369 1,898,872 1,895,888
3,280,099 1,802,405 1,241,968 1,328,515 1,834,531 2,862,343
61,108,829 55,121,112 53,070,317 50,100,521 52,443,326 53,778,083
4,356,172 4,920,707 4,713,981 4,372,077 4,202,841 4,239,824
24,361,353 22,842,844 21,857,490 21,299,851 20,433,826 19,536,711
11,665,054 10,914,521 10,063,808 9,526,140 9,639,766 9,971,383
4,503,384 4,305,937 4,067,434 3,811,954 3,830,435 3,779,577
5,837,896 6,197,514 5,954,740 5,212,917 4,912,545 4,733,922
10,049,051 7,898,228 2,855,748 1,603,241 2,282,947 860,039
770,000 755,000 735,000 715,000 700,000 635,000
438,961 452,512 514,008 490,336 506,527 570,087
- - - - - -
- - - - 440,300 444,282
61,981,871 58,287,263 50,762,209 47,031,516 46,949,187 44,770,825
(873,042) (3,166,151) 2,308,108 3,069,005 5,494,139 9,007,258
- - - - - 14,350,000
- - - - - (15,013,350)
- - - - - 842,166
1,117,768 1,673,941 1,745,048 (146,043) 843,982 1,225,186
1,117,768 1,673,941 1,745,048 (146,043) 843,982 1,404,002
- - (9,758,882) - - -
244,726 (1,492,210) (5,705,726) 2,922,962 6,338,121 10,411,260
2.1%2.2%2.5%2.6%2.6%2.7%
Fiscal Year
158
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
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)
2020 5,024,172,625 5,972,443,632 331,806,064 11,328,422,321 (268,904,312)
2021 5,232,189,372 6,226,364,668 360,724,645 11,819,278,685 (251,470,706)
2022 5,450,174,643 6,442,288,341 305,150,033 12,197,613,017 (267,310,398)
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.
159
Assessed Value (Continued)Change Estimated Total
Net Taxable Homeowners Net Taxable From Tax Direct
Value before HOE Exemptions (HOE)Value Prior Year Revenues Tax Rate
8,301,283,904 (75,843,150) 8,225,440,754 -0.45%9,311,665 0.211%
8,575,806,518 (74,913,680) 8,500,892,838 3.35%9,648,224 0.211%
8,974,283,497 (74,448,910) 8,899,834,587 4.69%10,117,764 0.211%
9,436,168,427 (73,706,162) 9,362,462,265 5.20%10,614,545 0.211%
9,788,816,723 (73,044,158) 9,715,772,565 3.77%11,043,425 0.211%
10,164,762,125 (72,492,736) 10,092,269,389 3.88%11,498,968 0.211%
10,664,423,837 (71,935,662) 10,592,488,175 4.96%12,032,539 0.211%
11,059,518,009 (72,435,591) 10,987,082,418 3.73%12,558,848 0.211%
11,567,807,979 (71,824,395) 11,495,983,584 4.63%13,632,548 0.211%
11,930,302,619 (70,250,600) 11,860,052,019 3.17%13,524,924 0.211%
160
CITY OF POWAY
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Overlapping Rates
Fiscal Year
Ended
June 30, City Direct Rate
Poway
Unified
School
District
San Diego
County
Education Revenue
Augmentation Fund
Palomar Community
College District All Other
Total 1%
Property Tax
Rate
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%
2020 0.211%0.389%0.167%0.118%0.067%0.047%1.000%
2021 0.211%0.389%0.167%0.118%0.067%0.047%1.000%
2022 0.211%0.389%0.167%0.118%0.067%0.047%1.000%
Rates for Voter Approved Bond Indebtedness
Fiscal Year
Ended
June 30,
Total 1% Property Tax
Rate City Rate
Poway
Unified
School
District All Other
Total Property Tax
Rate
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%
2020 1.000%0.000%0.064%0.044%1.108%
2021 1.000%0.000%0.065%0.050%1.115%
2022 1.000%0.000%0.069%0.053%1.122%
Note:
Source: San Diego County Assessor's Office
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.
161
CITY OF POWAY
Principal Secured Property Taxpayers
Current Year and Nine Years Ago
2022 2013
Taxpayer
Taxable
Assessed
Secured Value Rank
Percentage
of Total City
Net
Assessed
Secured
Value
Taxable Assessed
Secured Value Rank
Percentage
of Total City
Net
Assessed
Secured
Value
Sorrento West Properties Inc 418,871,169$ 1 3.51% 162,257,256$ 1 1.95%
HCPLS Poway LLC 161,982,531 2 1.36%
Pomerado Pavilion Mob LLC 137,276,319 3 1.15%
RREEF CPIF Kirkham Way JV LLC 86,516,411 4 0.73%
San Miguel Valley Corp 71,869,405 5 0.60%43,237,417 4 0.52%
Sysco Food Services Of San Diego 45,184,341 6 0.38%34,700,000 6 0.42%
Hometown Poway Royal Estates LLC 45,003,538 7 0.38%38,938,500 5 0.47%
P M I Summerlyn LLC 44,612,288 8 0.37%
Costco Wholesale Corp 43,138,906 9 0.36%29,850,000 9 0.36%
Harsch Investment Properties LLC 42,444,190 10 0.36%
Slough Poway I LLC 86,127,246 2 1.04%
Ventas Inc 74,557,218 3 0.90%
Toray Membrane USA Inc 32,735,162 7 0.39%
Poway Crossings Investors LLC 29,989,497 8 0.36%
PR Stowe LLC 27,821,386 10 0.34%
Total 1,096,899,098$ 9.18% 560,213,682$ 6.76%
Total City net assessed secured value 11,930,302,619$ 8,301,283,904$
Source: County of San Diego Offices of the Auditor and Controller, and Assessor's Office
162
CITY OF POWAY
General Property Tax Levies and Collections
Last Ten Fiscal Years
Within The Year of Levy Cumulative Prior Years of Levy Total Collections to Date
Fiscal
Year
Ended
June 30, Current Tax Levy Current Collected
Percent of
Levy
Collected
Prior
Years'
Levies
Collection from
Prior Years' Levies
(1)
Percent of Prior
Years' Levies
Collected
Total
Levies
Total
Collections Percentage
2013 15,044,676 14,897,994 99.03%550,273 214,571 38.99%15,594,949 15,112,565 96.91%
2014 15,325,043 15,160,972 98.93%507,586 226,146 44.55%15,832,630 15,387,118 97.19%
2015 12,524,910 12,418,741 (2)99.15%470,515 278,069 59.10%12,995,425 12,696,810 97.70%
2016 12,958,510 12,859,128 99.23%312,585 143,345 45.86%13,271,094 13,002,474 97.98%
2017 13,390,895 13,279,054 99.16%285,552 140,081 49.06%13,676,447 13,419,135 98.12%
2018 13,802,364 13,694,433 99.22%267,874 133,325 49.77%14,070,237 13,827,758 98.28%
2019 14,345,375 14,229,865 99.19%254,246 134,667 52.97%14,599,621 14,364,532 98.39%
2020 14,928,965 14,729,661 98.66%248,805 123,517 49.64%15,177,770 14,853,178 97.86%
2021 15,453,799 15,277,726 98.86%355,750 196,527 55.24%15,809,549 15,474,253 97.88%
2022 15,932,867 15,789,695 99.10%333,765 187,130 56.07%16,266,632 15,976,825 98.22%
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
163
CITY OF POWAY
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-type
Private Purpose Trust
Fiscal Year
Ended June
30,
Certificates
of
Participation
Pension
Obligation
Bonds
Lease Payable
(Regional
Comm System
Water
Revenue
Bonds
Pension
Obligation
Bonds
Revenue
Bonds
Total
Primary
Government
Percentage
of Personal
Income
Per
Capita
Certificates
of
Participation
Tax Allocation
Bonds Loan Payable
Total
Private
Purpose Trust
2013 16,753,498 - - - 745,904 17,499,402 0.72%360 1,986,311 215,576,452 2,780,463 220,343,226
2014 16,261,467 - - - 512,660 16,774,127 0.69%342 1,618,877 208,316,472 2,885,549 212,820,898
2015 15,522,575 - - - 264,415 15,786,990 0.62%322 1,237,034 200,633,015 2,971,614 204,841,663
2016 14,764,508 - - - - 14,764,508 0.54%295 840,722 172,587,873 3,087,885 176,516,480
2017 13,987,299 - - - - 13,987,299 0.49%278 430,053 163,593,731 3,193,031 167,216,815
2018 13,195,977 - - - - 13,195,977 0.45%263 - 154,504,587 3,338,564 157,843,151
2019 12,385,546 - - - - 12,385,546 0.41%246 - 145,646,325 - 145,646,325
2020 11,556,033 - - - - 11,556,033 0.37%234 - 136,617,815 - 136,617,815
2021 10,702,553 841,922 - - - 11,544,475 0.36%236 - 127,333,638 - 127,333,638
2022 9,830,315 33,990,670 707,424 15,015,899 9,834,330 - 69,378,638 2.02%1,420 - 117,768,759 - 117,768,759
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
Governmental Activities Activities
164
CITY OF POWAY
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Outstanding
General
Bonded Debt
Fiscal Year
Ended
June 30,
Tax
Allocation
Bonds
Percent of
Assessed
Value (a)
Per
Capita
2013 215,576,452 2.61%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
2020 136,617,815 1.21%2,769
2021 127,333,638 1.08%2,602
2022 117,768,759 0.97%2,411
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
165
CITY OF POWAY
Direct and Overlapping Debt
As of June 30, 2022
2021-22 Assessed Valuation: 11,930,302,619
OVERLAPPING TAX AND ASSESSMENT DEBT:Debt
Outstanding
%
Applicable (1)
Estimated Share of
Overlapping Debt
Metropolitan Water District $20,175,000 0.350% $70,613
Palomar Community College District 655,840,155 8.528% 55,930,048
Poway Unified School District School Facilities Improvement District No. 2002-1 114,320,766 39.219% 44,835,461
Poway Unified School District School Facilities Improvement District No. 2007-1 164,542,310 40.137% 66,042,347
Escondido Union High School District 79,639,809 0.066% 52,562
San Pasqual Union School District 72,350 2.052% 1,485
Palomar Health District 408,228,082 12.466% 50,889,713
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $217,822,229
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations $245,340,000 1.97% $4,828,291
San Diego County Pension Obligation Bonds 340,825,000 1.97% 6,707,436
San Diego County Superintendent of Schools Obligations 7,780,000 1.97% 153,110
Palomar Community College District Certificates of Participation 1,440,000 8.53% 122,803
Escondido Union High School District Certificates of Participation 49,800,000 0.07% 32,868
Poway Unified School District Certificates of Participation 54,460,000 23.65% 12,881,968
City of Poway Certificates of Participation 9,735,000 100 9,735,000
City of Poway Pension Obligation Bonds 43,825,000 100 33,990,670
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $68,452,147
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):108,555,000 100.00% 108,555,000
TOTAL DIRECT DEBT $44,528,409
TOTAL OVERLAPPING DEBT $351,103,705
COMBINED TOTAL DEBT $395,632,114 (2)
Ratios to 2021-22 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.83%
Total Direct Debt ($10,590,000) 0.45%
Combined Total Debt 3.39%
Ratios to Redevelopment Successor Agency Incremental Valuation ($5,527,601,699):
Total Overlapping Tax Increment Debt 1.96%
Notes:
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Source: California Municipal Statistics, Inc. and City of Poway Finance Department
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding
debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue
and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer
is a resident, and therefore responsible for repaying the debt, of each overlapping government.
(1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining
the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value.
166
CITY OF POWAY
Legal Debt Margin Information
Last Ten Fiscal Years
2022 2021 2020 2019 2018
Assessed valuation 6,402,700,920$ 6,191,840,175 5,945,360,349 5,696,205,876 5,443,613,176
Conversion percentage 25%25%25%25%25%
Adjusted assessed valuation 1,600,675,230 1,547,960,044 1,486,340,087 1,424,051,469 1,360,903,294
Debt limit percentage 15%15%15%15%15%
Debt limit 240,101,285 232,194,007 222,951,013 213,607,720 204,135,494
Total net debt applicable to limit:
General obligation bonds - - - - -
Legal debt margin 0.00%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.
Source:
City of Poway Finance Department
San Diego County Assessor's Office
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.
Fiscal Year
167
2017 2016 2015 2014 2013
5,227,958,736 5,024,927,288 4,789,751,105 4,567,470,473 4,408,143,750
25%25%25%25%25%
1,306,989,684 1,256,231,822 1,197,437,776 1,141,867,618 1,102,035,938
15%15%15%15%15%
196,048,453 188,434,773 179,615,666 171,280,143 165,305,391
- - - - -
0.00%0.00%0.00%0.00%0.00%
Fiscal Year
168
CITY OF POWAY
Pledged Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Fiscal Year Debt Service
Ended Tax RPTTF
June 30,Increment Distribution Principal Interest Total Coverage
2013 - 39,511,570 6,695,000 11,169,832 17,864,832 2.21
2014 - 40,907,420 7,020,000 10,889,354 17,909,354 2.28
2015 - 42,495,591 7,450,000 10,565,336 18,015,336 2.36
2016 - 44,786,412 7,440,000 6,558,087 13,998,087 3.20
2017 - 46,953,802 7,110,000 6,895,377 14,005,377 3.35
2018 - 47,750,166 7,205,000 6,802,425 14,007,425 3.41
2019 - 50,733,852 6,975,000 6,674,688 13,649,688 3.72
2020 - 51,213,979 7,190,000 6,454,450 13,644,450 3.75
2021 - 55,323,182 7,545,000 6,108,625 13,653,625 4.05
2022 - 57,517,332 7,935,000 5,726,500 13,661,500 4.21
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
169
CITY OF POWAY
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Year Population
Personal
Income
Per Capita
Personal Income Labor Force
Unemployment
Rate
2013 48,559 2,418,772,349 49,811 29,100 4.3%
2014 48,979 2,434,081,675 49,696 28,900 3.6%
2015 49,041 2,530,262,475 51,595 26,000 3.2%
2016 50,103 2,723,873,711 54,365 25,900 3.3%
2017 50,253 2,832,840,386 56,372 25,500 2.8%
2018 50,207 2,934,117,370 58,440 26,000 3.2%
2019 50,320 3,053,938,899 60,690 25,700 2.7%
2020 49,338 3,106,029,884 62,954 24,600 9.8%
2021 48,936 3,195,633,275 65,302 24,200 5.1%
2022 48,850 3,430,863,582 70,233 25,100 2.3%
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
170
CITY OF POWAY
Full-Time-Equivalent City Employees by Function
Last Ten Fiscal Years
Function 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
General government 35.75 35.50 35.50 35.98 31.21 32.44 32.44 29.48 28.96 27.96
Public safety (a) 57.00 57.00 57.00 57.00 58.00 56.00 56.00 55.00 54.00 54.00
Public works 87.00 83.00 78.96 82.36 86.84 89.36 88.36 84.36 79.96 81.96
Community services 23.12 24.10 24.10 50.39 50.03 49.47 48.99 46.49 45.78 45.57
Development services 25.50 25.50 25.50 25.50 25.50 22.50 22.50 21.96 22.96 23.96
Total 228.37 225.10 221.06 251.23 251.58 249.77 248.29 237.29 231.66 233.45
Notes:
Amounts shown are the number of full-time-equivalents (FTEs) approved in each operating budget for the fiscal year.
Source: City of Poway FY22 Operating Budget
Fiscal Year
(a) Not including law enforcement services, which are provided through contract with the County of San Diego Sheriff.
Beginning in Fiscal Year 2020, part-time temporary staffing is no longer reflected in the FTE count.
171
This page intentionally left blank.
172
CITY OF POWAY
Operating Indicators
Last Ten Fiscal Years
Function 2022 2021 2020 2019 2018
General government:
Business registrations issued 1,958 1,630 1,759 2,253 1,859
Vendor payments processed 6,207 6,160 6,185 6,580 6,203
Public Safety:
Arrests made 892 838 1,150 978 900
Fire emergency responses 4,968 4,757 4,780 5,706 5,146
Safety Inspections 1,047 1,577 1,692 2,100 2,451
Development Services:
Building permits issued 2,480 2,410 2,217 2,168 2,465
Building inspections 9,280 8,266 7,480 8,572 9,023
Culture and recreation:
Performing arts center attendance 37,359 500 20,496 51,806 56,573
Library-number of holdings in collection (1) (1) (1) (1) (1)
Library-number of holdings circulated 606,351 425,983 711,446 924,021 897,531
Athletic field permits issued 229 191 258 301 335
Highways and streets:
Roads resurfaced in square feet 61,856 199,661 283,121 122,250 204,000
Roads slurry sealed in square feet 4,712,146 4,380,343 4,313,485 4,282,280 4,231,308
Pot holes repaired 135 199 236 216 189
Water:
Residential water customers 12,686 12,681 12,659 12,673 12,662
Commercial water customers 496 501 510 509 500
All other water customers 847 845 824 821 816
Average daily consumption (mg) (2)5.76 8.30 7.34 7.39 8.31
Sewer:
Residential sewer customers 11,440 11,428 11,402 11,417 11,410
Commercial sewer customers 463 477 510 488 480
All other sewer customers 360 351 334 331 328
Average daily flow (mg)2.04 2.36 2.88 2.41 2.35
Notes:
(1) Because of County-wide interbranch loan program, this statistic is no longer tracked.
2013 through 2022 was revised to reflect more accurate reporting.
Source:
City of Poway
Fiscal Year
(2) After an internal review of the City's reporting mechanisms, the Average Daily Consumption (mg) data for the period
173
2017 2016 2015 2014 2013
1,987 1,509 1,510 1,285 1,522
6,689 6,623 6,705 6,426 6,770
900 1,079 1,214 1,069 1,038
4,755 4,564 4,229 4,099 3,846
2,652 2,587 3,069 2,899 2,687
2,013 2,444 2,070 1,504 1,345
9,600 9,162 12,488 8,221 8,349
56,637 57,908 60,276 55,652 59,389
(1) (1) (1)93,951 75,000
863,874 782,599 733,689 709,823 782,288
285 225 232 282 156
306,543 306,000 237,024 299,038 188,561
4,627,262 4,933,522 4,378,483 4,379,695 3,928,425
191 213 193 175 644
12,631 12,625 12,765 12,674 12,509
495 493 658 645 529
812 811 /----------------not reported--------------/
7.34 6.78 9.23 10.20 9.87
11,391 11,381 11,530 11,498 11,474
475 472 630 627 623
329 329 /----------------not reported--------------/
2.68 2.48 2.53 2.73 2.86
Fiscal Year
174
CITY OF POWAY
Capital Assets Statistics
Last Ten Fiscal Years
Function 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Public safety:
Number of fire stations 3 3 3 3 3 3 3 3 3 3
Number of sheriff stations 1 1 1 1 1 1 1 1 1 1
Public works:
Total number of streetlights 3,066 3,897 3,021 3,059 3,059 3,059 3,059 3,059 3,059 3,059
Signal controlled intersections 57 58 56 56 56 56 56 56 56 55
Health and welfare:
Senior center facilities 1 1 1 1 1 1 1 1 1 1
Culture and recreation:
Number of libraries 1 1 1 1 1 1 1 1 1 1
Number of performing arts centers 1 1 1 1 1 1 1 1 1 1
Number of parks 19 19 19 19 19 19 19 19 19 19
Acres of developed parks 232 232 232 232 232 232 232 232 232 232
Number of reserves/preserves 2 2 2 2 2 2 2 2 2 2
Acres of reserves/preserves 2400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400
Miles of trails 78 78 78 56 56 56 56 56 56 56
Highways and streets:
Miles of roadway 165 165 165 165 165 165 165 165 165 165
Water:
Miles of water lines 317 289 289 289 289 289 289 289 289 289
Water storage capacity (billion/gallons) 1.11 1.11 1.11 1.11 1.11 1.11 1.11 1.11 1.11 1.11
Sewer:
Miles of sewer lines 186 186 186 186 186 186 186 186 186 186
Miles of storm sewers 64 64 64 64 64 64 64 64 64 64
Source:
City of Poway
Fiscal Year
175
This page intentionally left blank.
176