ACFR FY 2022-2023Lake Poway Recreation Area
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
CITY OF POWAY, CALIFORNIA
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City of Poway
Poway, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended
June 30, 2023
Prepared by:
Finance Department
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CITY OF POWAY
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................... i
Principal Officers .......................................................................................................................................... vi
Organization Chart ....................................................................................................................................... vii
GFOA Certificate of Achievement for Excellence in Financial Reporting ..................................................... viii
FINANCIAL SECTION
Independent Auditor’s Report ...................................................................................................................... 1
Management’s Discussion and Analysis ....................................................................................................... 5
Basic Financial Statements:
Government–Wide Financial Statements:
Statement of Net Position .................................................................................................................... 20
Statement of Activities ......................................................................................................................... 22
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet – Governmental Funds .............................................................................................. 28
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position ............................................................................................................................... 29
Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 30
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities ......................................... 31
Proprietary Fund Financial Statements:
Statement of Net Position ................................................................................................................. 34
Statement of Revenues, Expenses, and Changes in Net Position ..................................................... 35
Statement of Cash Flows ................................................................................................................... 36
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ................................................................................................. 40
Statement of Changes in Fiduciary Net Position ............................................................................... 41
Notes to the Basic Financial Statements .............................................................................................. 44
Required Supplementary Information:
Budgetary Comparison Schedule – General Fund ................................................................................... 96
Budgetary Comparison Schedule – Housing Authority Fund .................................................................. 97
Notes to Required Supplementary Information ...................................................................................... 98
Schedule of Changes in Net Pension Liability and Related Ratios, Last
10 Years – Miscellaneous Plan ........................................................................................................... 100
Schedule of Plan Contributions, Last 10 Years – Miscellaneous Plan ................................................... 102
Schedule of the City’s Proportionate Share of the Plan’s Net Pension Liability
and Related Ratios, Last 10 Years – Safety Plan ................................................................................. 104
Schedule of Plan Contributions, Last 10 Years – Safety Plan ................................................................. 106
CITY OF POWAY
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
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 ......................................................................................... 108
Schedule of Plan Contributions, Last 10 Years – Retirement Enhancement Plan ................................. 110
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet ................................................................................................................... 116
Combining Statement of Revenues, Expenditures and Changes in Fund Balance ............................. 120
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Non-Major Special Revenue Funds:
Fire Protection ............................................................................................................................. 124
800 MHz Communication System ................................................................................................ 125
Gas Tax ......................................................................................................................................... 126
Drainage ....................................................................................................................................... 127
Miscellaneous Grants ................................................................................................................... 128
AB 939 Integrated Waste Management ...................................................................................... 129
Community Development Block Grant ........................................................................................ 130
Transportation Development Act ................................................................................................ 131
Proposition A................................................................................................................................ 132
SB 1186 Disabled Access Law ....................................................................................................... 133
Excess SAFE Reserve .................................................................................................................... 134
Regional Arterial Traffic Mitigation.............................................................................................. 135
Fire Protection Impact Fees ......................................................................................................... 136
BEGIN Program ............................................................................................................................ 137
Housing In-Lieu ............................................................................................................................ 138
Abandoned Vehicle Fees .............................................................................................................. 139
Habitat In-Lieu.............................................................................................................................. 140
Maintenance Districts .................................................................................................................. 141
Road Repair .................................................................................................................................. 142
Mary Patricia Ross Trust .............................................................................................................. 143
Non-Major Debt Service Fund:
City Debt Service .......................................................................................................................... 144
Non-Major Capital Projects Funds:
Park Improvement ....................................................................................................................... 145
Community Benefits .................................................................................................................... 146
Street Improvement .................................................................................................................... 147
Municipal Improvement Capital Projects Fund ........................................................................... 148
CITY OF POWAY
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
(continued)
Page
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years ................................................................................. 150
Changes in Net Position – Last Ten Fiscal Years........................................................................................ 152
Fund Balances, Governmental Funds – Last Ten Fiscal Years ................................................................... 156
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years ................................................ 158
Assessed Value of Taxable Property – Last Ten Fiscal Years..................................................................... 160
Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ......................................................... 162
Principal Secured Property Taxpayers – Current and Nine Years Ago ...................................................... 163
General Property Tax Levies and Collections – Last Ten Fiscal Years ....................................................... 164
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years..................................................................... 165
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ....................................................... 166
Direct and Overlapping Debt as of June 30, 2023 .................................................................................... 167
Legal Debt Margin Information – Last Ten Fiscal Years ............................................................................ 168
Pledged Revenue Coverage – Last Ten Fiscal Years .................................................................................. 170
Demographic and Economic Statistics – Last Ten Calendar years ............................................................ 171
Full-Time-Equivalent City Employees by Function – Last Ten Fiscal Years ............................................... 172
Operating Indicators – Last Ten Fiscal Years ............................................................................................. 174
Capital Assets Statistics – Last Ten Fiscal Years ........................................................................................ 176
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Introductory Section
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CITY OF POWAY
Principal Officers
June 30, 2023
CITY COUNCIL
MAYOR
Steve Vaus
DEPUTY MAYOR
Caylin Frank
COUNCIL MEMBERS
Peter De Hoff
Brian Pepin
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
Tim McDermott, Interim
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
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
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, 2022
Executive Director/CEO
Financial Section
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Independent Auditor’s Report
City Council
City of Poway
Poway, California
Report on the Audit of the Financial Statements
Opinion
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, 2023, 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, 2023, 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 opinions.
Emphasis of Matter
As described further in Note 12 to the financial statements, during the year ended June 30
2023, the City implemented Government Accounting Standard (GASB) No. 96: Subscription-
Based Information Technology 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.
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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.
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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.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 27,2023 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
December 27, 2023
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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, 2023. 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 current fiscal year by $239 million (net position) an increase of $1.5
million or 0.6%.
• At the close of the current fiscal year, the City’s governmental funds reported an increase in combined
fund balance of $8.5 million in comparison with the prior fiscal year, to $102.3 million. Of this amount,
$17 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 $54 million. Of this amount,
$18 million is unassigned.
• The unrestricted net position, which represents the amounts available to meet the City’s ongoing
obligations to citizens and creditors, was $68.3 million, which decreased by $4 million or 6%, in
comparison to the prior fiscal year. The decrease was a combination of the governmental activities
decreased by $1.7 million and the business-type activities decreased by $2.3 million.
OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
The discussion and analysis provided here are 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
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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.
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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 $1.5 million in FY 2022-23. The total assets
increased by $8.7 million and total liabilities decreased by $16 million. Deferred outflows of resources
decreased $29 million and deferred inflows of resources increased $6 million. The following analysis of
governmental and business-type activities provides more detailed information for these changes.
2023 2022 2023 2022 2023 2022
Assets:
Current and other assets 127,391$ 117,462 49,912 58,564 177,303 176,026
Capital assets 120,538 123,075 40,069 30,061 160,607 153,136
Total assets 247,929 240,537 89,981 88,625 337,910 329,162
Deferred Outflows 23,266 47,202 2,905 8,215 26,171 55,417
Liabilities:
Long-term debt outstanding 46,383 46,497 24,854 25,210 71,237 71,707
Other liabilities 12,124 12,592 3,755 4,635 15,879 17,227
Net pension liability 21,859 33,409 3,657 6,356 25,516 39,765
Total liabilities 80,366 92,498 32,266 36,201 112,632 128,699
Deferred Inflows 12,158 15,969 104 2,219 12,262 18,188
Net position:
Net investment in capital assets 110,355 113,446 26,178 21,736 136,533 135,182
Restricted 34,340 30,145 - - 34,340 30,145
Unrestricted 33,977 35,681 34,337 36,684 68,314 72,365
Total net position 178,672$ 179,272 60,515 58,420 239,187 237,692
(in thousands)
Total Primary
Government
Summary of Net Position
Table 1
Governmental Business-Type
Activities Activities
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Governmental Activities
The net position of governmental activities decreased by $0.6 million or 0.3% from $179.2 million to
$178.6 million. The following is an explanation of the significant changes between fiscal years as shown
in Table 1 above:
• Current and other assets increased $9.9 million or 9% principally due to an increase in cash and
investments as well as prepaid items as part of the normal operations.
• Capital assets decreased by $2.5 million or 2% (net of depreciation and additions), as detailed in Table
3. The decrease is mainly due to the disposal of equipment and vehicles the City no longer has.
• Total liabilities decreased by $12 million or 13% mainly due to decrease in long-term debt and net
pension liabilities.
• Net Investment in capital assets decreased by $3 million or 3% mainly due to the disposal of
equipment and vehicles the City no longer has. Restricted net position increased by $4 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, decreased by $1.7
million or 5% primarily due to lifting of the COVID-19 emergency order which limited the financial
freedom and activities of the City in prior year.
The cost of all governmental activities this year was $75 million as shown on Tables 2 and 2.1 below. Total
revenue was $74 million, which consisted of $16 million from those who directly benefited from the
programs, $6 million from grant and contribution subsidies received from other governmental
organizations for both capital and operating activities, and $50 million was financed through general
revenues. Items of significance within Table 2 are described after the table.
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Fiscal Year 2023
Governmental Activities
(Graphic representation of Table 2 in percentages)
Revenues
Total revenues increased by $3 million or 4%. The following is an explanation of the changes between
fiscal years as shown in Table 2 above:
• The total program revenues decreased by $3 million or 11%, mainly due to a one-time $6 million ARPA
Act relief funds received because of COVID-19 pandemic in FY2021-22.
• The total general revenues increased by $3 million or 4%. Sales tax decreased by $2 million or 11%
while property taxes increased by $2 million or 8% mostly due to increase in cost of real estate.
Investment and miscellaneous revenue increased by $6 million or 436% mainly due to improved
market performance in FY 2023.
Expenses
• Total expenses increased by $16 million or 26% mainly due to lifting the COVID-19 emergency orders
which limited the financial freedom and activities of the City in the prior year.
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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 in Table 2.1. The net cost shows the extent to which the general taxes support each of the
City’s programs.
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Total resources available during the year to finance governmental activities were $179 million, which
consisted of net position on July 1, 2022, of $179 million, program revenues of $24 million, general
revenues of $50 million, and transfers of $0.4 million. Total governmental expenditure during the year
was $75 million. The governmental net position resulted in a $0.6 million decrease, ending with $179
million on June 30, 2023.
Business-Type Activities
The net position of business-type activities increased by $2 million or 4% from $58 million to $61 million.
As shown in Table 2.2 below, program revenues were $41 million, while the cost of providing all business-
type activities this year was $39 million.
Water Activities
The water total operating revenues had no significant change compared to the prior year. The water total
operating expenses were decreased by $2.6 million or 7% compared to FY 2022 mainly because the cost
of imported water from San Diego County Water District increased in FY 2022.
Sewer Activities
The sewer total operating revenues decreased by $0.9 million or 7% compared to FY 2022 mainly due to
increase in sewer rate increases in FY 2022 and the sewer total operating expenses decreased by $3 million
or 24% compared to FY 2022 mainly as a result of increase in maintenance and operations costs in FY
2022.
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FUND HIGHLIGHTS
General Fund
Revenue
Actual revenues compared favorably to the final budget, resulted in a $2.7 million positive variance
(excluding other financing sources). The major variance was in Use (Loss) of Money and Property revenue.
Actual revenue in this category was $0.9 million higher than budgeted primarily due to better-than-
expected market performance.
Expenditures
The final appropriations for the City’s General Fund expenditures at year-end were $12 million more than
actual expenditures (excluding other financing uses) mainly due to the City’s prudent financial decisions.
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 $0.5 million for operations at the end of June 30, 2023. Revenues were primarily
made up of lease payments from properties owned by the Housing Authority, residual payments from its
non-profit partners that own and operate affordable housing projects, and investment earnings.
Expenditures for general government continued to be minimal as the Housing Authority continued to
explore how to best use these funds to improve the quantity and quality of affordable housing in the City.
13
However, expenditure related to Development Services increased by $0.6 million mainly due to
repayment of loan associated with one of the housing developments.
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 almost 1 million or 0.6% mainly
due to the disposal of equipment and vehicles the City no longer has. (See Table 3 below & Note 6 to the
Basic Financial Statements.)
14
Debt
At year-end, the City had $46 million in governmental debt, $25 million in business-type debt, and $108
million in fiduciary debt (Table 4). The overall decrease in bond balances compared to FY 2022 is mainly
due to issuance of Pension Obligation and Water Revenue Series 2021A bond in FY 2022; No new bonds
were issued in FY 2023 (See Table 4 below & Note 7 to the Basic Financial Statements.)
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City Budget for FY2023-24 looks significantly different than last year because of City Council’s
leadership and support of major initiatives such as updating the ambulance fees, approving the issuance
of pension obligation bonds, executing six-year labor agreement, and entering into a new five-year
agreement with the San Diego County Sheriff’s Department for law enforcement services. Global
economic trends impact this year’s budget as well due to rising inflation rates and supply chain issues
resulting in increased costs.
The following are a few of the major initiatives that 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 FY2023-24.
The City Council approved the City funded landscape master plan as well as funding for
improvements to two entryways into the Landscape Maintenance Districts (LMDs) to
demonstrate how the landscape master plan could be used for future LMD improvements.
A significant amount of work has been done related to the Poway Center for the Performing Arts
(PCPA). With financial support from the McCarthy Family Foundation, the City completed a
fundraising feasibility study. The City also successfully renegotiated the Joint Use Agreement with
Poway Unified School District to share operating and capital projects costs associated with PCPA.
Through strong partnership between the City and the Friends of Poway Seniors, the older adult
program has flourished at the Mickey Cafagna Community Cetner. The program offers a wide
range of classes and activities and the lunch program.
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). The Water Program is
comprised of the Clearwell Bypass, the Clearwell Replacement, and the San Diego County Water Authority
15
(SDCWA) Treated Water Connection projects. The Clearwell Bypass project was completed under budget
in FY 2022-23.
The City’s CIP remains very active for FY2023-24 with a total of 60 existing and proposed projects totaling
over $80 million in appropriations. Additionally, the City will invest almost $1.6 million in maintaining and
improving Poway’s streets which is an important priority for our community. Additionally, $1.8 million has
been set aside to build a brand-new Upper Lake Poway Playground. Approximately, $0.2 million of the
cost of this project will be offset by a state grant.
CONTACTING THE CITY’S FISCAL MANAGEMENT
This financial report is designed to provide the City’s citizens, taxpayers, customers, investors, and
creditors with a general overview of the City’s finances and to show the City’s fiduciary responsibility for
the funds it receives. If you have questions about this report or need additional financial information,
contact the City’s Finance Department, at the City of Poway, 13325 Civic Center Drive, Poway, California
92064 or go online at http://www.poway.org.
16
BASIC FINANCIAL STATEMENTS
17
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18
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
19
Governmental
Activities
Business-Type
Activities Total
ASSETS
Current assets:
Cash and investments (note 2)102,454,787$ 37,812,304 140,267,091
Cash and investments with fiscal agents (note 2)596,781 1,294 598,075
Receivables:
Taxes 3,300,926 - 3,300,926
Accounts 2,135,766 6,384,944 8,520,710
Interest 1,082,653 - 1,082,653
Leases (note 3) 181,163 - 181,163
Internal balances (40,291) 40,291 -
Due from other governments 323,785 - 323,785
Prepaid items 3,627,095 34,285 3,661,380
Land held for resale 177,000 - 177,000
Inventories 166,104 4,493,116 4,659,220
Total current assets 114,005,769 48,766,234 162,772,003
Noncurrent assets:
Leases receivable (note 3)194,778 - 194,778
Notes receivable (note 4)12,515,669 - 12,515,669
Loans to the Successor Agency to the
Poway Redevelopment Agency 675,017 1,139,799 1,814,816
Loans to other governments - 5,556 5,556
Capital assets:
Nondepreciable assets (note 6)38,916,613 5,773,015 44,689,628
Depreciable assets, net (note 6)81,621,726 34,295,921 115,917,647
Total capital assets 120,538,339 40,068,936 160,607,275
Total noncurrent assets 133,923,803 41,214,291 175,138,094
Total assets 247,929,572 89,980,525 337,910,097
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding of debt 113,363 - 113,363
Pension related (note 8)23,153,117 2,905,109 26,058,226
Total deferred outflows of resources 23,266,480 2,905,109 26,171,589
(Continued)
CITY OF POWAY
Statement of Net Position
June 30, 2023
Primary Government
See accompanying notes to the basic financial statements
20
Governmental
Activities
Business-Type
Activities Total
LIABILITIES
Current liabilities:
Accounts payable 6,448,799 3,441,204 9,890,003
Accrued liabilities 1,348,486 142,969 1,491,455
Accrued interest payable 233,267 - 233,267
Deposits 4,054,081 124,670 4,178,751
Unearned revenue 39,111 47,118 86,229
Long-term debt - due within one year (note 7) 4,624,920 1,080,278 5,705,198
Total current liabilities 16,748,664 4,836,239 21,584,903
Noncurrent liabilities:
Long-term debt - due in more than one year (note 7) 41,758,185 23,773,446 65,531,631
Net pension liability (note 8) 21,859,291 3,656,687 25,515,978
Total noncurrent liabilities 63,617,476 27,430,133 91,047,609
Total liabilities 80,366,140 32,266,372 112,632,512
DEFERRED INFLOWS OF RESOURCES
Leases (note 3) 257,657 - 257,657
Pension related (note 8) 11,900,719 104,027 12,004,746
Total deferred inflows of resources 12,158,376 104,027 12,262,403
NET POSITION
Net investment in capital assets 110,354,823 26,178,242 136,533,065
Restricted for:
Drainage 5,152,280 - 5,152,280
Fire protection 245,469 - 245,469
Grants 570,560 - 570,560
Housing 5,854,027 - 5,854,027
Maintenance districts 9,630,456 - 9,630,456
Other purposes 1,915,362 - 1,915,362
Parks and recreation 3,354,254 - 3,354,254
Streets 5,793,328 - 5,793,328
Transportation 1,823,798 - 1,823,798
Total restricted 34,339,534 - 34,339,534
Unrestricted 33,977,179 34,336,993 68,314,172
Total net position 178,671,536$ 60,515,235 239,186,771
CITY OF POWAY
Statement of Net Position
June 30, 2023
Primary Government
(Continued)
See accompanying notes to the basic financial statements
21
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants
Primary government:
Governmental activities:
General government 5,985,626$ 2,034,044 192,508 -
Public safety 36,002,066 3,578,770 490,668 -
Public works 11,280,953 3,154,058 4,826,178 -
Development services 10,791,648 3,245,882 191,401 -
Community services 9,794,751 4,313,987 257,191 1,441,666
Interest and fiscal charges 1,277,731 - - -
Total governmental activities 75,132,775 16,326,741 5,957,946 1,441,666
Business-type activities:
Water 28,670,235 29,986,319 6,784 -
Sewer 10,360,555 11,101,447 2,896 -
Total business-type activities 39,030,790 41,087,766 9,680 -
Total primary government 114,163,565$ 57,414,507 5,967,626 1,441,666
`
Program Revenues
CITY OF POWAY
Statement of Activities
Year Ended June 30, 2023
See accompanying notes to the basic financial statements
22
Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:
Governmental activities:
General government (3,759,074)$ - (3,759,074)
Public safety (31,932,628) - (31,932,628)
Public works (3,300,717) - (3,300,717)
Development services (7,354,365) - (7,354,365)
Community services (3,781,907) - (3,781,907)
Interest and fiscal charges (1,277,731) - (1,277,731)
Total governmental activities (51,406,422) - (51,406,422)
Business-type activities:
Water - 1,322,868 1,322,868
Sewer - 743,788 743,788
Total business-type activities - 2,066,656 2,066,656
Total primary government (51,406,422) 2,066,656 (49,339,766)
General revenues:
Taxes:
Property taxes 28,493,295 - 28,493,295
Sales tax 16,023,705 - 16,023,705
Transient occupancy taxes 791,338 - 791,338
Other taxes 838,001 - 838,001
Total taxes 46,146,339 - 46,146,339
Investment earnings (loss) 2,435,612 380,307 2,815,919
Miscellaneous 1,860,990 10,841 1,871,831
Transfers 362,916 (362,916) -
Total general revenues and transfers 50,805,857 28,232 50,834,089
Change in net position (600,565) 2,094,888 1,494,323
Net position, beginning of year 179,272,101 58,420,347 237,692,448
Net position, end of year 178,671,536$ 60,515,235 239,186,771
Changes in Net Position
Net (Expense) Revenue and
See accompanying notes to the basic financial statements
23
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24
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
25
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26
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
27
Special Revenue
Fund Total
Housing Non-major Total
General Authority Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments 57,746,372$ 5,111,224 29,470,427 92,328,023
Cash and investments with
fiscal agents - - 596,772 596,772
Receivables:
Taxes 3,300,926 - - 3,300,926
Notes 12,515,669 - - 12,515,669
Accounts 1,981,126 12,390 142,250 2,135,766
Interest 973,630 - 109,023 1,082,653
Leases (note 3) 375,941 - - 375,941
Due from other funds (note 5)276,347 - - 276,347
Due from other governments 69,134 - 254,651 323,785
Prepaid items 1,145,119 - - 1,145,119
Land held for resale 177,000 - - 177,000
Inventories, at cost 166,104 - - 166,104
Advances to fiduciary funds (note 5)- 362,965 312,052 675,017
Total assets 78,727,368$ 5,486,579 30,885,175 115,099,122
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable 4,791,267$ 30,047 1,546,366 6,367,680
Accrued liabilities 1,251,991 - 90,552 1,342,543
Due to other funds (note 5)216,300 - 475,513 691,813
Deposits payable 3,841,197 - 212,884 4,054,081
Unearned revenue 12,550 14,736 11,825 39,111
Total liabilities 10,113,305 44,783 2,337,140 12,495,228
Deferred inflows of resources:
Leases (note 3) 257,657 - - 257,657
Unavailable revenue 3,750 - - 3,750
Total deferred inflows
of resources 261,407 - - 261,407
Fund Balances:
Nonspendable 14,003,892 - - 14,003,892
Restricted - 5,441,796 29,622,465 35,064,261
Committed 23,555,523 - - 23,555,523
Assigned 12,745,574 - - 12,745,574
Unassigned 18,047,667 - (1,074,430) 16,973,237
Total fund balances 68,352,656 5,441,796 28,548,035 102,342,487
Total liabilities, deferred
inflows of resources and
fund balances 78,727,368$ 5,486,579 30,885,175 115,099,122
CITY OF POWAY
Balance Sheet
Governmental Funds
June 30, 2023
See accompanying notes to the basic financial statements
28
Total Fund Balances - Total Governmental Funds 102,342,487$
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 38,916,613$
Depreciable, net of accumulated depreciation 81,621,726 120,538,339
on the Government-Wide Statement of Net Position. 113,363
reported in the governmental funds:
Pension related deferred outflows of resources (net of $226,367 reported
in Internal Service Fund) 22,926,750
Pension related deferred inflows of resources (net of $8,300 reported in
Internal Service Fund) (11,892,419) 11,034,331
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) (3,067,934)
Compensated absences (net of $31,890 reported in Internal Service Fund) (1,525,096)
Long-term liabilities - due in more than one year
Long-term debt (net of $722,017 reported in Internal Service Fund) (40,646,921)
Pension related (net of $278,941 reported in Internal Service Fund) (21,580,350)
Compensated absences (net of $7,973 reported in Internal Service Fund) (381,274) (67,201,575)
Interest payable on long-term debt did not require current financial resources.
Funds Balance Sheet. (233,267)
Statements. 3,750
The internal service funds was used by management to charge the costs of certain
Statement of Net Position. 12,074,108
Net position of governmental activities 178,671,536$
CITY OF POWAY
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Position
June 30, 2023
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
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
See accompanying notes to the basic financial statements
29
Special Revenue
Fund Total
Housing Non-major Total
General Authority Governmental Governmental
Fund Fund Funds Funds
REVENUES
Taxes 43,073,491$ - 6,910,433 49,983,924
Licenses and permits 2,391,866 - - 2,391,866
Intergovernmental 496,119 - 690,136 1,186,255
Charges for services 7,502,989 - - 7,502,989
Fines and forfeitures 138,084 - - 138,084
Use (loss) of money and property 1,964,680 64,818 595,455 2,624,953
Developer fees 4,088,267 - 2,707,513 6,795,780
Assessments levied - - 2,045,086 2,045,086
Other revenues 654,552 339,446 351,954 1,345,952
Total revenues 60,310,048 404,264 13,300,577 74,014,889
EXPENDITURES
Current:
General government 4,103,625 18,875 - 4,122,500
Public safety 29,174,886 - - 29,174,886
Public works 5,646,931 - 3,844,056 9,490,987
Development services 5,733,660 563,995 - 6,297,655
Community services 7,223,380 - - 7,223,380
Capital outlay 1,480,278 - 5,392,037 6,872,315
Debt service:
Principal 407,246 - 1,273,720 1,680,966
Interest and fiscal charges 39,360 - 1,552,376 1,591,736
Total expenditures 53,809,366 582,870 12,062,189 66,454,425
Excess (deficiency) of revenues
over (under) expenditures 6,500,682 (178,606) 1,238,388 7,560,464
OTHER FINANCING SOURCES
(USES)
Transfers in (note 5) 1,649,112 - 2,869,566 4,518,678
Transfers out (note 5) (2,726,851) - (829,155) (3,556,006)
Total other financing
sources (uses) (1,077,739) - 2,040,411 962,672
Net change in fund balances 5,422,943 (178,606) 3,278,799 8,523,136
Fund balances, beginning of year 62,929,713 5,620,402 25,269,236 93,819,351
Fund balances, end of year 68,352,656$ 5,441,796 28,548,035 102,342,487
CITY OF POWAY
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2023
See accompanying notes to the basic financial statements
30
Net change in fund balances - Total Governmental Funds 8,523,136$
different because:
Capital asset expenditures 1,427,019$
Depreciation expense (5,670,108)
Disposition of capital assets (35,211) (4,278,300)
Principal payments on long-term debt 1,680,966
Adjustment of lease payable 130,846
Changes in pension related items (8,563,789) (6,751,977)
Change in compensated absences (net of $586 reported in Internal Service Fund) 28,296
Change in interest expense on long term debt 315,953
Amortization of deferred loss on bond refunding (11,933)
Amortization of bond premium 2005 Certificates of Participation 1,749
Amortization of bond premium 2012 Certificates of Participation 14,112 348,177
(225)
1,558,624
Change in net position of governmental activities (600,565)$
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, 2023
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
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
See accompanying notes to the basic financial statements
31
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32
PROPRIETARY FUND
FINANCIAL STATEMENTS
33
Governmental
Activities -
Internal Service
Water Sewer Total Fund
ASSETS
Current assets:
Cash and investments (note 2) 19,206,586$ 18,605,718 37,812,304 10,126,764
Cash with fiscal agent (note 2) 1,278 16 1,294 9
Receivables:
Accounts 4,823,686 1,561,258 6,384,944 -
Inventories 4,453,005 40,111 4,493,116 -
Due from other governments 5,556 - 5,556 -
Prepaid expenses 34,285 - 34,285 2,481,976
Due from other funds (note 5) 28,949 11,342 40,291 375,175
Total current assets 28,553,345 20,218,445 48,771,790 12,983,924
Noncurrent assets:
Advances to the Successor Agency to the
Poway Redevelopment Agency (note 5) 796,940 342,859 1,139,799 -
Capital assets:
Nondepreciable (note 6) 5,691,869 81,146 5,773,015 -
Depreciable (note 6) 74,444,460 36,232,493 110,676,953 -
Less accumulated depreciation (note 6) (47,370,784) (29,010,248) (76,381,032) -
Total net capital assets 32,765,545 7,303,391 40,068,936 -
Total noncurrent assets 33,562,485 7,646,250 41,208,735 -
Total assets 62,115,830 27,864,695 89,980,525 12,983,924
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 2,527,774 377,335 2,905,109 226,367
LIABILITIES
Current liabilities:
Accounts payable 3,380,365 60,839 3,441,204 81,119
Accrued liabilities 127,806 15,163 142,969 5,943
Deposits 124,670 - 124,670 -
Unearned revenue 33,044 14,074 47,118 -
Bonds payable, due within one year (note 7) 704,898 60,214 765,112 -
Compensated absences due within one year (note 7) 259,672 55,494 315,166 31,890
Total current liabilities 4,630,455 205,784 4,836,239 118,952
Noncurrent liabilities:
Bonds payable (note 7) 22,415,223 1,279,432 23,694,655 722,017
Compensated absences (note 7) 64,918 13,873 78,791 7,973
Net pension liability 3,169,817 486,870 3,656,687 278,941
Total noncurrent liabilities 25,649,958 1,780,175 27,430,133 1,008,931
Total liabilities 30,280,413 1,985,959 32,266,372 1,127,883
DEFERRED INFLOWS OF RESOURCES
Pension related items 90,902 13,125 104,027 8,300
NET POSITION
Net investment in capital assets 18,874,851 7,303,391 26,178,242 -
Unrestricted 15,397,438 18,939,555 34,336,993 12,074,108
Total net position 34,272,289$ 26,242,946 60,515,235 12,074,108
CITY OF POWAY
Statement of Net Position
Proprietary Funds
June 30, 2023
See accompanying notes to the basic financial statements
34
Governmental
Activities -
Internal Service
Water Sewer Total Fund
OPERATING REVENUES
Charges for services 28,646,673$ 9,697,974 38,344,647 3,579,083
Connection fees 1,271,695 1,377,506 2,649,201 -
Other 67,951 25,967 93,918 -
Total operating revenues 29,986,319 11,101,447 41,087,766 3,579,083
OPERATING EXPENSES
Personnel services 5,461,947 944,467 6,406,414 416,070
Maintenance and operations 5,802,373 8,369,669 14,172,042 1,176,665
Administrative expenses 534,894 - 534,894 -
Cost of purchased water 14,555,871 - 14,555,871 -
Depreciation 1,630,681 1,013,375 2,644,056 -
Total operating expenses 27,985,766 10,327,511 38,313,277 1,592,735
Operating income 2,000,553 773,936 2,774,489 1,986,348
NONOPERATING REVENUES
(EXPENSES)
Interest revenue 197,807 182,500 380,307 95,159
Interest expense and fiscal charges (684,469) (33,044) (717,513) (17,809)
Grant revenue 6,784 2,896 9,680 -
Other nonoperating revenue 10,841 - 10,841 94,682
Total nonoperating revenues
(expenses)(469,037) 152,352 (316,685) 172,032
Income before transfers 1,531,516 926,288 2,457,804 2,158,380
TRANSFERS
Transfers in (note 5)- - - 213,370
Transfers out (note 5)(260,919) (101,997) (362,916) (813,126)
Total transfers (260,919) (101,997) (362,916) (599,756)
Change in net position 1,270,597 824,291 2,094,888 1,558,624
Net position, beginning of year 33,001,692 25,418,655 58,420,347 10,515,484
Net position, end of year 34,272,289$ 26,242,946 60,515,235 12,074,108
Proprietary Funds
CITY OF POWAY
Statement of Revenues, Expenses and Changes in Net Position
Year Ended June 30, 2023
See accompanying notes to the basic financial statements
35
Governmental
Activities -
Internal Service
Water Sewer Total Fund
Cash flows from operating activities:
Cash received from customers 30,464,496$ 12,342,895 42,807,391 -
Cash received from interfund charges - - - 3,579,083
Cash paid to employees for services (5,039,195) (865,904) (5,905,099) (375,457)
Cash paid to suppliers for goods or services (22,454,104) (8,351,753) (30,805,857) (2,603,285)
Other 67,951 25,967 93,918 94,682
Net cash provided by (used for)
operating activities 3,039,148 3,151,205 6,190,353 695,023
Cash flows from noncapital financing
activities:
Loan repayment from the Successor Agency 98,269 46,813 145,082 -
Interest on long-term liabilities (308,009) (33,044) (341,053) (17,809)
Principal payments on long-term liablities (63,888) (10,164) (74,052) (5,478)
Cash received from other funds 7,464 3,275 10,739 213,370
Cash paid to other funds (260,919) (101,997) (362,916) (809,081)
Net cash used for
noncapital financing activities (527,083) (95,117) (622,200) (618,998)
Cash flows from capital and related
financing activities:
Acquisition of capital assets (5,415,044) (141,517) (5,556,561) -
Principal paid on long-term debt (240,000) - (240,000) -
Payment of interest and fees (512,385) - (545,429) -
Net cash provided by (used for) capital
and related financing activities (6,167,429) (141,517) (6,341,990) -
Cash flows from investing activities:
Interest income 197,807 182,500 380,307 95,159
Net cash provided by
investing activities 197,807 182,500 380,307 95,159
Net increase (decrease) in cash and
investments (3,457,557) 3,097,071 (360,486) 171,184
Cash and investments, beginning of year 22,665,421 15,508,663 38,174,084 9,955,589
Cash and investments, end of year 19,207,864$ 18,605,734 37,813,598 10,126,773
CITY OF POWAY
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
See accompanying notes to the basic financial statements
36
Governmental
Activities -
Internal Service
Water Sewer Total Funds
Reconciliation of operating income
to net cash provided by operating activities:
Operating income 2,000,553$ 773,936 2,774,489 1,986,348
Adjustments to reconcile operating income
to net cash provided by
operating activities:
Depreciation 1,630,681 1,013,375 2,644,056 -
Other nonoperating revenue 17,625 2,896 20,521 94,682
(Increase) decrease in assets:
Accounts receivable 478,514 1,264,519 1,743,033 -
Inventories (706,061) 4,216 (701,845) -
Prepaid expense - - - (1,347,935)
Deferred outflows - pension related 4,590,645 719,482 5,310,127 398,806
Increase (decrease) in liabilities:
Accounts payable (861,546) 27,814 (833,732) (71,662)
Accrued liabilities 6,641 (14,114) (7,473) (7,023)
Compensated absences 28,254 5,469 33,723 6,345
Net pension liability (2,343,960) (354,918) (2,698,878) (208,101)
Deposits 21,735 - 21,735 -
Deferred inflows - pension related (1,823,933) (291,470) (2,115,403) (156,437)
Net cash provided by (used for)
operating activities 3,039,148$ 3,151,205 6,190,353 695,023
There were no noncash investing, capital and financing activities during fiscal year ended June 30, 2023.
City of Poway
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
(Continued)
See accompanying notes to the basic financial statements
37
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38
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).
39
Successor Agency
to the Poway
Redevelopment
Agency
ASSETS
Current assets
Cash and investments (note 2)7,227,962$
Cash with fiscal agent (note 2)936
Prepaid charges 130,812
Total current assets 7,359,710
Noncurrent assets
Capital assets:
Nondepreciable (note 6)2,864,759
Total noncurrent assets 2,864,759
Total assets 10,224,469
LIABILITIES
Current liabilities
Interest payable 209,825
Long-term debt - due within one year (note 7)10,164,124
Total current liabilities 10,373,949
Noncurrent liabilities
Advances from City of Poway (note 5)1,814,816
Long-term debt - due in more than one year (note 7)97,744,668
Total noncurrent liabilities 99,559,484
Total liabilities 109,933,433
DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding of debt 788,756
NET POSITION (DEFICIT)
Held in trust for retirement of obligations
of the former Poway Redevelopment Agency (100,497,720)$
CITY OF POWAY
Statement of Fiduciary Net Position
June 30, 2023
Fiduciary Funds
See accompanying notes to the basic financial statements
40
Successor Agency
to the Poway
Redevelopment
Agency
ADDITIONS
Redevelopment Property Tax Trust Fund 61,755,357$
Investment earnings 238,677
Total additions 61,994,034
DEDUCTIONS
Enforceable obligations payments 47,007,590
Administration expenses 967,465
Interest expense and fiscal charges 3,777,969
Total deductions 51,753,024
Change in net position 10,241,010
Net position (deficit), beginning of year (110,738,730)
Net position (deficit), end of year (100,497,720)$
CITY OF POWAY
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2023
See accompanying notes to the basic financial statements
41
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42
NOTES TO THE BASIC
FINANCIAL STATEMENTS
43
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023
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 on 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.
44
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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.
45
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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.
46
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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.
47
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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 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.
48
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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 changes 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 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).
49
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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
The City 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.
50
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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 non-cancellable 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.Subscription-Based Information Technology (IT) Arrangements
The City is a participant in subscription-based IT arrangements as detailed in Note 12. The City
recognizes a subscription-based IT payable and right to use IT assets in the financial statements.
At the commencement of the arrangement, the City initially measures the payable at the present
value of payments expected to be paid during the arrangement term. Subsequently, the payable is
reduced by the principal portion of payments made. The right to use assets are initially measured at
the initial amount of the subscription-based IT payable. Subsequently, the right to use assets are
amortized over the life of the arrangement term.
H.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
Machinery and equipment 5-20 years
Infrastructure 20-50 years
Right to use assets Life of lease/arrangement term
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.
51
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 1 –Summary of Significant Accounting Policies (continued)
H.Capital Assets (continued)
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Capital assets acquired under 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 “lease
obligations.” A capital asset is recorded at the net present value of total lease payments in the
government-wide financial statements.
I.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 to 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.
J.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.
52
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 1 –Summary of Significant Accounting Policies (continued)
J.Compensated Absences (continued)
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.
K.Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other long-term obligations are reported as liabilities in the appropriate
activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the
straight-line method. Bonds payable are reported net of applicable premium or discount.
Fund Financial Statements
The Governmental Fund Financial Statements do not present long-term debt but are shown in the
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net
Position.
L.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, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
53
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 1 –Summary of Significant Accounting Policies (continued)
L. Pensions (continued)
PARS Plan
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
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.
M.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 assessed value of the property 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.
54
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 1 –Summary of Significant Accounting Policies (continued)
N.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.
O.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.
55
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 1 –Summary of Significant Accounting Policies (continued)
O. Fund Balances (continued)
Unassigned fund balances include all residual fund balances for the General Fund that have 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 the 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.
P.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.
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, 2023:
Fiduciary
Funds
Governmental Business-Type Statement of
Activities Activities Net Position Total
Cash and investments 102,454,787$ 37,812,304 7,227,962 147,495,053
Cash and investments with
fiscal agents 596,781 1,294 936 599,011
Total 103,051,568$ 37,813,598 7,228,898 148,094,064
Government-Wide
Statement of Net Position
56
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 2 –Cash, Cash Equivalents and Investments (continued)
Cash, cash equivalents, and investments consisted of the following at June 30, 2023:
A.Cash Deposits
The carrying amounts of the City’s demand deposits were $1,495,029 at June 30, 2023.Bank
balances at June 30, 2023 were $2,239,828,which were fully insured or collateralized with securities
held by the pledging financial institutions in the City’s name as discussed below:
The California Government Code requires California banks and savings and loan associations to
secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral
pledged in this manner shall have the effect of perfecting a security interest in such collateral
superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in
the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage
notes having a value of 150% of the City’s total cash deposits. The City may waive collateral
requirements for cash deposits, which are fully insured by the Federal Deposit Insurance
Corporation. The City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required
to be held by fiscal agents under the provisions of bond indentures. Interest income earned on
pooled cash and investments is allocated on an accounting period basis to the various funds based
on the period-end cash and investment balances. Interest income from cash and investments with
fiscal agents is credited directly to the related fund.
B.Investments
City Cash & Investment Pool
The table on the following page identifies the investment types that are authorized for the City by
the California Government Code (or the City’s investment policy, where more restrictive).The table
also identifies certain provisions of the California Government Code (or the City’s investment policy,
where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
Cash on hand 8,600$
Demand deposits 1,495,029
Investments 146,590,435
Total 148,094,064$
57
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 2 –Cash, Cash Equivalents and Investments (continued)
B.Investments (continued)
This table does not address investments of debt proceeds held by bond trustees 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.
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
58
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 2 –Cash, Cash Equivalents and Investments (continued)
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:
Credit Risk
Generally, credit risk is the risk that the 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.
12 Months 13 to 24 25 to 60
Investment Type Amounts or Less Months Months
U.S. Treasury Bills 28,980,315$ 13,101,713 12,750,442 3,128,160
U.S. Agencies 25,612,868 11,881,354 3,744,790 9,986,724
CalTrust Investment Pool - Short term 11,753,031 11,753,031 - -
CalTrust Investment Pool - Medium term 11,488,838 - 11,488,838 -
Medium-Term and Corporate Notes 21,609,722 7,461,261 7,439,845 6,708,616
Local Agency Investment Fund (LAIF)46,450,591 46,450,591 - -
San Diego County Investment Pool 98,289 98,289 - -
Held by bond trustee:
Money Market Funds 596,781 596,781 - -
Total 146,590,435$ 91,343,020 35,423,915 19,823,500
Remaining Maturities
59
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 2 –Cash, Cash Equivalents and Investments (continued)
Credit Risk (continued)
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, 2023 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:
D.Investment in Local Agency Investment Funds
The City is a participant in the Local Agency Investment Fund (LAIF) which is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The
fair value of the City’s investment in this pool is reported in the accompanying financial statements
at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF
portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is
based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
There are no restrictions on participant withdrawals.
Minimum
Investment Type Rating S&P Moody's Fair Value
U.S. Treasury Bills exempt exempt exempt 28,980,315$
U.S. Agencies Aaa AA Aaa 25,612,868
CalTrust Investment Pool-Short term AAf AAf not rated 11,753,031
CalTrust Investment Pool-Medium term N/A not rated not rated 11,488,838
Medium-Term and Corporate Notes A-/A3 AA Aaa 21,609,722
Local Agency Investment Fund (LAIF)N/A not rated not rated 46,450,591
San Diego County Investment Pool AAAf AAAf not rated 98,289
Held by bond trustee:
Money Market Funds AAA AAAm Aaamf 596,781
Total 146,590,435$
Issuer Investment Type Reported Amount % of Investments
Federal Home Loan Bank U.S. Agencies 11,895,540$ 8%
Federal Farm Credit Bank U.S. Agencies 8,185,140 6%
60
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 2 –Cash, Cash Equivalents and Investments (continued)
D.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.
E.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.
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, 2023, the City had $97,828 invested in the San Diego County Investment Pool. The City’s
investment in this pool is reported in the accompanying financial statements at fair market value.
G.Fair Value Measurements
The following table presents the balances of the assets measured at fair value on a recurring basis as
of June 30, 2023.
Not Subject to
Fair Value Level Total Level 1 Level 2 Level 3 GASB 72
U.S. Treasury Bills 28,980,315$ 28,980,315 - - -
U.S. Agencies 25,612,868 - 25,612,868 - -
CalTrust Investment Pools 23,241,869 - - - 23,241,869
Medium-Term and Corporate Notes 21,609,722 - 21,609,722 - -
Local Agency Investment Fund (LAIF)46,450,591 - - - 46,450,591
San Diego County Investment Pool 98,289 - - - 98,289
Money Market Funds 596,781 - - - 596,781
Total investments by fair value level 146,590,435$ 28,980,315 47,222,590 - 70,387,530
Investments by
61
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 3 –Leases Receivable
The City is a lessor in non-cancellable leases for use of City property.The leases range from 10 to 15
years.The leases are required to make fixed monthly payments starting at $4,000 to $5,000 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 non-cancellable lease for restaurant space with fixed monthly rent
payments of $7,550 per month. The City recognized $8,808 in lease revenue and $1,797 in interest
revenue during the current fiscal year related to these agreements.As of June 30, 2023, the lease
receivable is $375,941 and deferred inflows of resources is $257,657.
Note 4 –Notes Receivable
At June 30, 2023, 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 three 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 90 days, then the interest is 0%. As of June 30, 2023, the City has not rescinded the
Local Emergency declaration.812,746
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 a 4% annual interest rate or the current interest rate
received by the City’s investment portfolio, whichever is greater. 2,923
Total notes receivable $ 12,515,669
62
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 5 –Interfund Transactions
A.Due To and Due From Other Funds
As of June 30, 2023, balances were as follows:
These balances resulted from loans to cover negative cash balances and capital replacement costs.
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 $ 362,965
Non-major Governmental Funds 312,052
Business-Type Activities:
Water Fund 796,940
Sewer Fund 342,859
Total $ 1,814,816
The City Council authorized various advances to the former Poway Redevelopment Agency, which
now reside in the Successor Agency, totaling $1,814,816. As approved by the State of California
Department of Finance, these advances are being repaid through fiscal year 2032-33. The advances
bear a 3% interest rate, payable over 18 years.
Internal
General Water Sewer Service
Due to other funds Fund Fund Fund Fund Total
Governmental Activities:
General Fund -$ - - 216,300 216,300
Non-major Governmental Funds 276,347 28,949 11,342 158,875 475,513
Total due to other funds 276,347$ 28,949 11,342 375,175 691,813
Due from other funds
63
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 5 –Interfund Transactions (continued)
C.Transfers To and From Other Funds
Transfers for the year ended June 30, 2023:
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 Internal
Transfers Out General Funds Service Total
General Fund -$ 2,513,481 213,370 2,726,851
Non-major Governmental Funds 829,155 - - 829,155
Water Enterprise Fund 6,831 254,088 - 260,919
Sewer Enterprise Fund - 101,997 - 101,997
Internal Service Fund 813,126 - - 813,126
Total 1,649,112$ 2,869,566 213,370 4,732,048
Transfers In
64
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 6 –Capital Assets
A.Governmental Activities
A summary of changes in capital assets for governmental activities for the year ended June 30, 2023:
Governmental activities depreciation expense for capital assets for the year ended June 30, 2023:
General Government $1,425,796
Public Safety 626,031
Public Works 2,482,440
Community Services 1,135,841
Total Depreciation Expense $ 5,670,108
Balance at Balance at
June 30, 2022 Additions Deletions Transfers June 30, 2023
Non-Depreciable Assets
Land 38,370,065$ - - - 38,370,065
Construction in progress 497,130 557,159 (3,750) (503,991) 546,548
Total non-depreciable assets 38,867,195 557,159 (3,750) (503,991) 38,916,613
Depreciable Assets
Buildings 78,340,503 - (66,935) 105,000 78,378,568
Improvements other than buildings 15,419,072 587,553 - - 16,006,625
Infrastructure 142,349,175 - - - 142,349,175
Right to use assets 1,330,746 - - - 1,330,746
Right to use assets-SBITA*1,741,615 1,741,615
Machinery and equipment 20,299,491 286,057 (651,472) 398,991 20,333,067
Total depreciable assets 259,480,602 873,610 (718,407) 503,991 260,139,796
Less accumulated depreciation
Buildings (42,325,408) (1,918,974)66,935 - (44,177,447)
Improvements other than buildings (4,152,505) (470,658) - - (4,623,163)
Infrastructure (112,983,108)(1,679,359)- - (114,662,467)
Right to use assets (798,447) (133,075) - - (931,522)
Right to use assets-SBITA - (415,392) - - (415,392)
Machinery and equipment (13,271,689) (1,052,650)616,260 - (13,708,079)
Total accumulated depreciation (173,531,157)(5,670,108)683,195 - (178,518,070)
Total depreciable assets, net 85,949,445 (4,796,498)(35,212) 503,991 81,621,726
Total governmental activities 124,816,640$ (4,239,339)(38,962) - 120,538,339
*Beginning balance restated due to implementation of GASB 96. See note 19 for additional details.
65
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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, 2023:
Business-type activities depreciation expense for capital assets for the year ended June 30, 2023:
Water Enterprise Fund $1,6,30,681
Sewer Enterprise Fund 1,013,375
Total Depreciation Expense $ 2,644,056
Balance at Balance at
June 30, 2022 Additions Deletions Transfers June 30, 2023
Non-Depreciable Assets
Land 76,797$ - - - 76,797
Construction in progress 11,595,031 5,140,143 - (11,038,956)5,696,218
Total non-depreciable assets 11,671,828 5,140,143 - - 5,773,015
Depreciable Assets
Buildings 22,063,561 - - - 22,063,561
Improvements other than buildings 73,933,017 - - 11,318,206 85,251,223
Machinery and equipment 3,468,300 416,418 (243,299) (279,250) 3,362,169
Total depreciable assets 99,464,878 416,418 (243,299)- 110,676,953
Less accumulated depreciation
Buildings (19,827,599) (466,744) - - (20,294,343)
Improvements other than buildings (51,400,837) (2,048,117)- - (53,448,954)
Machinery and equipment (2,751,839) (129,195) 243,299 - (2,637,735)
Total accumulated depreciation (73,980,275) (2,644,056)243,299 - (76,381,032)
Total depreciable assets, net 25,484,603 (2,227,638)- - 34,295,921
Total business-type activities 37,156,431$ 2,912,505 - - 40,068,936
66
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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, 2023:
Note 7 –Long-Term Debt
A summary of changes in long-term debt for the year ended June 30, 2023:
Balance at Balance at
June 30, 2022 Additions Deletions June 30, 2023
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, 2022 Additions Reductions June 30, 2023 One Year Than One Year
Governmental Activities:
2005 Certificates of Participation 1,205,000$ - (220,000) 985,000 230,000 755,000
Bond Premium 4,986 - (1,749) 3,237 1,390 1,847
2012 Certificates of Participation 8,530,000 - (665,000) 7,865,000 685,000 7,180,000
Bond Premium 90,329 - (14,112) 76,217 13,046 63,171
2021 Pension Obligation Bonds 33,990,670 - (255,948) 33,734,722 1,516,298 32,218,424
Compensated Absences 1,968,184 2,255,338 (2,277,289) 1,946,233 1,556,986 389,247
Subscription Based IT Arrangements*1,741,615 - (407,246) 1,334,369 480,093 854,276
Regional Communications System
Lease 707,424 - (269,097) 438,327 142,107 296,220
Total governmental activities 48,238,208$ 2,255,338 (4,110,441) 46,383,105 4,624,920 41,758,185
Business-Type Activities:
2021 Water Revenue Bonds 12,800,000$ - (240,000) 12,560,000 250,000 12,310,000
Bond Premium 2,215,899 - (76,410) 2,139,489 76,410 2,063,079
2021 Pension Obligation Bonds 9,834,330 - (74,052) 9,760,278 438,702 9,321,576
Compensated Absences 360,234 520,889 (487,166) 393,957 315,166 78,791
Total business-type activities 25,210,463$ 520,889 (877,628) 24,853,724 1,080,278 23,773,446
Fiduciary Funds:
2015A Tax Allocation Bonds 108,555,000$ - (8,345,000) 100,210,000 8,770,000 91,440,000
Bond Premium 9,213,759 - (1,514,967) 7,698,792 1,394,124 6,304,668
Total fiduciary activities 127,333,638$ - (9,859,967) 107,908,792 10,164,124 97,744,668
*Beginning balance restated due to implementation of GASB 96. See note 19 for additional details.
Classification
67
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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, 2023, the City’s portion of the outstanding balance of the 2005 Certificates of
Participation was $985,000.
The annual requirements to amortize the City portion of Certificates of Participation outstanding at
June 30, 2023:
2012 Certificates of Participation
On October 5, 2012, the Public Financing Authority (the “Authority”) 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 Authority.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, 2023, the
outstanding balance of the 2012 Certificates of Participation was $7,865,000.
Year Ending
June 30,Principal Interest Total
2024 230,000$ 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 985,000$ 91,238 1,076,238
68
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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, 2023:
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, 2023, the outstanding
balance of the 2021 Pension Obligation Bonds for governmental activities was $33,734,722.
The annual requirements to amortize the governmental activities Pension Obligation Bonds
outstanding at June 30, 2023:
Year Ending
June 30,Principal Interest Total
2024 1,516,298$ 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 1,601,614 764,213 2,365,827
2029 - 2033 8,535,478 3,300,028 11,835,506
2034 - 2038 9,729,902 2,112,086 11,841,988
2039 - 2043 5,630,856 824,522 6,455,378
2044 - 2048 2,063,096 154,724 2,217,820
Total 33,734,722$ 10,451,073 44,185,795
Year Ending
June 30,Principal Interest Total
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 770,000 158,358 928,358
2029 - 2033 4,230,000 417,633 4,647,633
Total 7,865,000$ 1,427,223 9,292,223
69
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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, 2023, the
remaining balance on the lease is $438,327. The following are remaining annual lease payments
June 30, 2023:
B.Proprietary Funds Long Term Debt
2021 Water Revenue Bonds
On November 1, 2021, the Public Financing Authority (the “Authority”) 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, 2023, the outstanding balance of the 2021 Water
Revenue Bonds was $12,560,000.
Year Ending
June 30,Principal Interest Total
2024 142,107$ 12,230 154,337
2025 146,072 8,265 154,337
2026 150,148 4,189 154,337
Total 438,327$ 24,684 463,011
Year Ending
June 30,Principal Interest Total
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 295,000 459,800 754,800
2029-2033 1,660,000 2,112,600 3,772,600
2034-2038 2,010,000 1,753,800 3,763,800
2039-2043 2,455,000 1,317,200 3,772,200
2044-2048 2,985,000 785,600 3,770,600
2049-2051 2,090,000 169,400 2,259,400
Total 12,560,000$ 8,546,400 21,106,400
70
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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, 2023, the outstanding
balance of the 2021 Pension Obligation Bonds for business-type activities was $9,760,278.
The annual requirements to amortize the proprietary funds Pension Obligation Bonds outstanding at
June 30, 2023:
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 $133,110,000 for the purpose of effecting a
refunding of the Poway Redevelopment Agency’s outstanding Paguay Redevelopment Project Tax
Allocation Refunding Bonds, Series 2000, Series 2001 and Series 2003. The bonds are dated July 1,
2015 and mature on June 15, 2033 in the principal amount and bear interest from 4% to 5%.
Interest is payable semi-annually on June 15 and December 15 through 2033. The bonds maturing
on December 15, 2026, December 15, 2027, June 15, 2028, December 15, 2028 and on December
15, 2029 are subject to optional redemption prior to maturity at the option of the Successor Agency.
Year Ending
June 30,Principal Interest Total
2024 438,702$ 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 463,386 221,105 684,491
2029 - 2033 2,469,522 954,778 3,424,300
2034 - 2038 2,815,098 611,078 3,426,176
2039 - 2043 1,629,144 238,554 1,867,698
2044 - 2048 596,904 44,766 641,670
Total 9,760,278$ 6,319,249 16,079,527
71
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (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, 2023, the balance of the 2015A Tax Allocation Bonds was $100,210,000. The annual
requirements to amortize the bonds outstanding at June 30, 2023:
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, 2023, the outstanding balance of governmental activities and business-
type activities compensated absences were $1,946,233 and $393,957, respectively.
Note 8 –Pension Plan Summary
The City currently has two pension plans administered by the California Public Employees’ Retirement
System (CalPERS) and one retirement enhancement plan administered by the Public Agency Retirement
Services (PARS). The pension plans consist of a miscellaneous agent plan and a cost-sharing safety plan
(see Note 9 for a full description of the plans). The retirement enhancement plan serves as a
supplemental defined benefit pension plan (see Note 10 for a full description of the plan).The summary
of the deferred outflows of resources, deferred inflows of resources, net pension liability and pension
expense:
Year Ending
June 30,Principal Interest Total
2024 8,770,000$ 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 9,010,000 2,957,500 11,967,500
2029-2033 52,365,000 7,032,125 59,397,125
Total 100,210,000$ 26,743,750 126,953,750
72
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 8 – Pension Plan Summary (continued)
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, 2021, 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.
Miscellaneous Safety PARS Total
Deferred Outflows of
Resources 11,255,193$ 13,289,042 1,513,991 26,058,226
Deferred Inflows of
Resources (372,525) (11,550,704) (81,517) (12,004,746)
Net Pension (Liability)/Asset (15,110,746) (9,343,895) (1,061,337) (25,515,978)
Pension Expense 4,427,991 8,339,096 149,771 12,916,858
73
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 9 –Defined Benefit Pension Plans -CalPERS (continued)
A.General Information about the Pension Plans (continued)
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.
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 five 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, 2023:
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
74
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 9 –Defined Benefit Pension Plans -CalPERS (continued)
A.General Information about the Pension Plans (continued)
Employees Covered
At June 30, 2022 (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.
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
Miscellaneous Safety
Inactive employees or beneficiaries
currently receiving benefits 292 55
Inactive employees entitled to but
not yet receiving benefits 235 41
Active employees 172 50
Total 699 146
75
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 9 –Defined Benefit Pension Plans -CalPERS (continued)
B.Net Pension Liability (continued)
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, 2022,
using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022, using
standard update procedures. A summary of principal assumptions and methods used to determine
the net pension liability:
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 6.90%
Inflation 2.30%
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 2.30% until Purchasing Power
Protection Allowance floor on purchasing power applies,
2.30% thereafter
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of
mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-
retirement and post-retirement mortality rates include generational mortality improvement using
80% of Scale MP-2020 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
November 2021 that can be found on the CalPERS website.
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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.
76
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 9 –Defined Benefit Pension Plans -CalPERS (continued)
B.Net Pension Liability (continued)
The expected real rate of return by asset class:
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately
issued CalPERS financial reports.
Assumed
Asset Real
Asset Class1 Allocation Return 1,2
Global Equity - Cap-weighted 30.00%4.54%
Global Equity - Non-Cap-weighted 12.00%3.84%
Private Equity 13.00%7.28%
Treasury 5.00%0.27%
Mortgage-backed Securities 5.00%0.50%
Investment Grade Corporates 10.00%1.56%
High Yield 5.00%2.27%
Emerging Market Debt 5.00%2.48%
Private Debt 5.00%3.57%
Real Assets 15.00%3.21%
Leverage -5.00%-0.59%
Total 100.0%
77
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 9 –Defined Benefit Pension Plans -CalPERS (continued)
B.Net Pension Liability (continued)
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: 6/30/2021 (VD)$ 128,679,349 102,766,275 25,913,074
Changes Recognized for the
Measurement Period:
Service Cost 2,106,424 -2,106,424
Interest on the Total Pension Liability 8,950,009 -8,950,009
Change of Assumptions
Differences between Expected and
Actual Experience
4,268,441
(579,484)
-
-
4,268,441
(579,484)
Contributions –Employer - 33,458,912 (33,458,912)
Contributions –Employees -1,012,404 (1,012,404)
Net Investment Income -(8,859,581)8,859,581
Benefit Payments, including Refunds of
Employee Contributions (7,422,494) (7,422,494) -
Administrative Expense - (64,017) 64,017
Net Change During 2021-22 7,322,896 18,125,224 (10,802,328)
Balance at: 6/30/2022 (MD)$ 136,002,245 120,891,499 15,110,746
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, 2022, 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, 2021, rolled forward to June
30, 2022, 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, 2021, and 2022, was as
follows:
Safety Plan
Proportionate Share of NPL -June 30, 2021 0.33319%
Proportionate Share of NPL -June 30, 2022 0.13598%
Change -Increase (Decrease)(0.19721%)
78
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 9 –Defined Benefit Pension Plans -CalPERS (continued)
B.Net Pension Liability (continued)
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: 6/30/2021 (VD)$ 69,918,725 58,225,442 11,693,293
Balance at: 6/30/2022 (MD) 75,336,537 65,992,641 9,343,895
Net changes during 2021-22 $ 5,417,812 7,767,199 (2,349,398)
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 6.90 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
(5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Discount Rate -1%Current Discount Rate Discount Rate + 1%
(5.90%)(6.90%)(7.90%)
Miscellaneous Plan $ 32,492,161 15,110,746 714,274
Safety Plan 19,747,753 9,343,895 841,092
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.
79
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 9 – Defined Benefit Pension Plans - CalPERS (continued)
B. Net Pension Liability (continued)
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, 2023, the City recognized pension expense of $4,427,991 and
$8,339,096 for the Miscellaneous and Safety Plans, respectively. At June 30, 2022 measurement
date, the City reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
The $1,818,108 and $1,497,160 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in
the fiscal year ended June 30, 2024.
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between Expected and
Actual Experience 323,325$ (372,525) 386,710 -
Changes of Assumptions 2,743,998 - 942,148 -
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments 6,369,762 - 1,475,532 (101,467)
Change in Employer's Proportion - - 8,627,598 (10,909,175)
Difference in Actual vs Projected Contributions - - 359,894 (540,062)
Pension Contributions Subsequent to
Measurement Date 1,818,108 - 1,497,160 -
11,255,193$ (372,525) 13,289,042 (11,550,704)
Miscellaneous Safety
80
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 9 –Defined Benefit Pension Plans -CalPERS (continued)
C.Net Pension Liability (continued)
Amounts reported as deferred outflows and deferred inflows of resources related to pensions will
be recognized in future pension expense as follows:
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.
Measurement
Period Ended
June 30,Miscellaneous Safety
2023 2,808,720$ (130,494)
2024 2,145,838 (273,325)
2025 735,248 (255,098)
2026 3,374,754 900,095
2027 - -
Thereafter - -
Deferred Outflows/(Inflows) of
Resources
81
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
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, 2022,
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.
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 38.46%
Required employee contribution rates none
82
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 10 –Defined Benefit Pension Plan -Retirement Enhancement Plan (continued)
A.General Information about the Pension Plan (continued)
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, 2023 are $1,278,809.
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, 2023, using an annual actuarial valuation as of June 30, 2022. 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, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 6.50%
Inflation 2.30%
Salary Increases1 Consistent with the rates used to value CalPERS Miscellaneous
Public Agency Pension Plans (Entry Age 30)
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, 2022 (actuarial valuation date), the following employees were covered by the benefit
terms:
Supplemental
Inactive employees or beneficiaries
currently receiving benefits 94
Active employees 45
Total 139
83
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 10 –Defined Benefit Pension Plan -Retirement Enhancement Plan (continued)
B.Net Pension Liability (continued)
Discount Rate
GASB 68 generally requires 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.
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 five 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, 2023
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.
84
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 10 –Defined Benefit Pension Plan -Retirement Enhancement Plan (continued)
B.Net Pension Liability (continued)
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.
C.Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement
period.
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(c) = (a) - (b)
Balances as of June 30, 2022 20,979,331$ 18,821,156$ 2,158,175$
Changes for the year:
Service Cost 135,556 - 135,556
Interest on the Total
Pension Liability 1,330,737 - 1,330,737
Effect of Economic
Demographic Gains or
Losses (144,222) - (144,222)
Effect of Assumptions
Changes or Inputs 50,309 - 50,309
Benefit Payments (1,304,558) (1,304,558) -
Employer Contributions - 1,278,809 (1,278,809)
Net Investment Income - 1,245,584 (1,245,584)
Administrative Expenses - (55,175) 55,175
Net Changes during 2022-23 67,822 1,164,660 (1,096,838)
Balance as of June 30, 2023 21,047,153$ 19,985,816$ 1,061,337$
85
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 10 –Defined Benefit Pension Plan -Retirement Enhancement Plan (continued)
C.Changes in the Net Pension Liability (continued)
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 one percentage point lower (5.50%) or one 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 $ 3,380,991 1,061,337 (906,305)
Recognition of Gains and Losses
Investment gains/losses are recognized in pension expense over a period of five years;
economic/demographic gains/losses and assumption changes or inputs are recognized over the
average remaining service life for all active and inactive members.
D.Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2023, the City incurred a pension expense of $149,771 for the Plan.
As of June 30, 2023, 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
2024 $ 331,748
2025 205,296
2026 900,391
2027 (4,961)
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between Expected and
Actual Experience 18,854$ (81,517)
Changes of Assumptions 28,436 -
Net Difference between Projected and
Actual Earnings on Pension Plan 1,466,701 -
Total 1,513,991$ (81,517)
86
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
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, 2023 is $7,870.
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.
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, 2023 is $1,737,712.
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 interest between 2 percent and 3 percent 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, 2023 is $2,072,774.
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,
2023 is $41,119,809.
87
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 12 – Subscription-Based Information Technology Arrangements
The City has entered into subscription-based information technology (IT) arrangements with various
vendors. These arrangements are governed by Governmental Accounting Standards Board Statement
No. 96, Subscription-Based IT Arrangements.
As of June 30, 2023, the City has recognized a liability of $1,334,369 related to these subscription-based
IT arrangements. This liability represents the total estimated cost of the remaining subscription period,
as determined by the contract terms and usage data.
The City has also recognized an intangible asset of $1,741,615, representing the right to use the
subscription-based IT arrangements for the remaining subscription period, as determined by the
contract terms and usage data.
The City has disclosed additional information about these subscription-based IT arrangements in the
City's financial statements, including the nature of the obligation and the term of the subscription, as
well as any changes to the estimate of the liability or the intangible asset since the previous financial
statements.
The City believes that it has complied with the requirements of GASB Statement No. 96 in all material
respects, and that the financial statements present fairly, in all material respects, the financial position
of the City as of June 30, 2023.
Note 13 – 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 124 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.
88
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 13 –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
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 2022-23 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 $2 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.
89
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 13 –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
$250,000 deductible. The CJPIA has an aggregate limit of $50 million for the period from July 1,
2022 through July 1, 2023. Each member of the CJPIA has a $5 million sub-limit during the three
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
$235,564,394. 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 2022-23.
Note 14 –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.
90
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 14 –Joint Venture (continued)
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, 2023, which is the latest information available:
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 15 –Deficit Net Position
At June 30, 2023, the following funds had deficit net position:
Fund Type Fund Name Deficit
Special Revenue Fund 800 MHz Communication System $ (43,279)
Special Revenue Fund
Special Revenue Fund
Community Development Block Grant (CDBG)
Proposition A
(306)
(1,030,845)
Fiduciary Fund Successor Agency to the Poway Redevelopment Agency (100,497,720)
The 800 MHz Communication System Special Revenue fund had a deficit balance of $43,279 due to the
timing of collections of the voter-approved special tax. The CDBG Special Revenue fund had a deficit
balance of $306 due to the timing of reimbursement of eligible expenditures. The Proposition A Special
Revenue fund had a deficit balance of $1,030,845 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 $100,497,720, which resulted from the issuance of tax allocation bonds that were
intended to be repaid by the former Poway Redevelopment Agency’s future property tax increment
revenue. Now that the Redevelopment Agency has been dissolved, the Successor Agency expects to
receive sufficient Redevelopment Property Tax Trust Fund distributions through the remaining life of the
bonds to fully fund their repayment.
Total Assets 357$
Total Liabilities 37$
Total Equity 320$
Total Revenues 353$
Total Expenses 500$
Net Decrease in Fund Equity (147)$
Amounts in Thousands
91
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 16 –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, 2023 with an estimated cost to complete
of approximately $40,992,146 in all fund types.
C.Significant Encumbrances
Encumbrances represent purchase orders, contracts,or other commitments for the expenditure of
monies. However, because these commitments will be honored in subsequent years, they do not
constitute an expenditure or liability for financial statement purposes. At fiscal year-end, the City
had the following significant encumbrances.
Special Internal
General Revenue Enterprise Service
Purpose Fund Funds Funds Funds Total
Water Projects -$ - 4,385,987 - 4,385,987
Sewer Projects - - 362,456 - 362,456
Street Projects - 342,048 - - 342,048
Drainage Projects - 299,657 - - 299,657
Professional Services 103,439 155,172 - 2,873 261,484
Equipment 217,479 40,674 - 12,203 270,356
Vehicles - 24,931 - 200,726 225,657
Facilities 81,713 - - 524,905 606,618
Computer Equipment and Software 145,138 - - 125,871 271,009
Total Outstanding Encumbrances 547,769$ 862,482 4,748,443 866,578 7,025,272
92
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 17 –Fund Balances Classification
The City’s fund balances at June 30, 2023:
* The $812,746 of Notes Receivables related to the PEARL program (see Note 3)is included in the Extreme Events committed
fund balance instead because the funding for the PEARL program came from there and that amount eventually collected is
subject to the same constraints.
Total
Housing Non-Major
General Authority Governmental
Fund Fund Funds Total
Nonspendable:
Prepaid items 1,145,119$ - - 1,145,119
Inventories 166,104 - - 166,104
Land held for resale 177,000 - - 177,000
Notes receivable 12,515,669 - - 12,515,669
Total nonspendable 14,003,892 - - 14,003,892
Restricted:
Debt service payments - - 724,685 724,685 Drainage - - 5,152,280 5,152,280
Fire protection - - 245,469 245,469
Grants - - 570,560 570,560
Housing - 5,441,796 412,231 5,854,027
Maintenance districts - - 9,630,456 9,630,456
Other purposes - - 1,915,362 1,915,362
Parks and recreation - - 3,354,254 3,354,254
Streets - - 5,793,328 5,793,328
Transportation - - 1,823,798 1,823,798
Total restricted - 5,441,796 29,622,423 35,064,219
Committed:
Economic volatility 7,649,478 - - 7,649,478
Extreme events 14,606,394 - - 14,606,394
Pension Stabilization 1,299,651 - - 1,299,651
Total committed 23,555,523 - - 23,555,523
Assigned:
Capital projects 7,988,135 - - 7,988,135
Contractual services 288,689 - - 288,689
Equipment/ furniture 86,563 - - 86,563
Library 265,336 - - 265,336
Parks and recreation 304,536 - - 304,536
Public education & govt programming 1,148,193 - - 1,148,193
Public safety 92,478 - - 92,478
Repair and maintenance 2,571,644 - - 2,571,644
Total assigned 12,745,574 - - 12,745,574
Unassigned 18,047,667 - (1,074,430) 16,973,237
Total unassigned 18,047,667 - (1,074,430) 16,973,237
Total fund balances 68,352,656$ 5,441,796 28,547,993 102,342,445
Major Funds
93
CITY OF POWAY
Notes to the Basic Financial Statements
Year Ended June 30, 2023 (continued)
Note 18 – 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, 2023:
Note 19 – Implementation of New Accounting Standard
As described in Note 12 to the financial statements, the City changed accounting policies related to
leases by adopting Statement of Governmental Accounting Standards Board (GASB) Statement No. 96,
Subscription-Based Information Technology Assessments, in fiscal year 2023. The City did not restate
prior year balances as it was not practicable to do so.
Note 20 – Subsequent Event
In September 2023, the Poway Public Financing Authority issued $35,790,000 in Water Revenue Bonds,
Series 2023A. The proceeds will be used to finance a portion of the Water Infrastructure Improvement
Program. The bonds have an interest rate of 5% and principal payments due semi-annually from 2024
through 2053.
Final
Governmental Funds - Non-Major Fund Budget Expenditures Excess
Special Revenue Funds:
800 MHz Communication System 154,337$ 154,366 (29)
Road Repair 809,717 809,757 (40)
Debt Service Funds:
City Debt Service 2,664,617 2,671,772 (7,155)
94
REQUIRED
SUPPLEMENTARY INFORMATION
95
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 42,534,119$ 42,534,119 43,073,491 539,372
Licenses and permits 2,100,384 2,100,384 2,391,866 291,482
Intergovernmental 523,338 523,338 496,119 (27,219)
Charges for services 6,695,780 7,237,380 7,502,989 265,609
Fines and forfeitures 115,000 115,000 138,084 23,084
Use (loss) of money and property 1,111,550 1,111,550 1,964,680 853,130
Developer fees 2,986,769 3,658,769 4,088,267 429,498
Other revenues 144,740 280,465 654,552 374,087
Total revenues 56,211,680 57,561,005 60,310,048 2,749,043
EXPENDITURES
Current:
General government 9,402,774 10,147,955 4,103,625 6,044,330
Public safety 28,430,656 28,698,670 29,174,886 (476,216)
Public works 5,838,733 6,279,583 5,646,931 632,652
Development services 6,410,167 7,110,750 5,733,660 1,377,090
Community services 6,890,581 7,625,165 7,223,380 401,785
Capital outlay 1,458,427 5,462,226 1,480,278 3,981,948
Debt service:
Principal - - 407,246 (407,246)
Interest - - 39,360 (39,360)
Total expenditures 58,431,338 65,324,349 53,809,366 11,514,983
Excess (deficiency) of revenues
over (under) expenditures (2,219,658) (7,763,344) 6,500,682 14,264,026
OTHER FINANCING SOURCES (USES)
Transfers in 2,857,271 3,670,397 1,649,112 (2,021,285)
Transfers out (4,113,205) (4,113,205) (2,726,851) 1,386,354
Total other financing sources (uses)(1,255,934) (442,808) (1,077,739) (634,931)
Net change in fund balance (3,475,592)$ (8,206,152) 5,422,943 13,629,095
Fund balance, beginning of year 62,929,713
Fund balance, end of year 68,352,656$
Budget Amounts
CITY OF POWAY
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
Year Ended June 30, 2023
96
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Charges for services 18,389$ 18,389 - (18,389)
Use of money and property 69,227 69,227 64,818 (4,409)
Other revenues 40,000 40,000 339,446 299,446
Total revenues 127,616 127,616 404,264 276,648
EXPENDITURES
Current:
General government 106,100 116,110 18,875 97,235
Development services 55,300 663,953 563,995 99,958
Total expenditures 161,400 780,063 582,870 197,193
Excess (deficiency) of revenues
over (under) expenditures (33,784) (652,447) (178,606) 473,841
Net change in fund balance (33,784)$ (652,447) (178,606) 473,841
Fund balance, beginning of year 5,620,402
Fund balance, end of year 5,441,796$
Budget Amounts
CITY OF POWAY
Budgetary Comparison Schedule - Housing Authority Fund
Required Supplementary Information
Year Ended June 30, 2023
97
CITY OF POWAY
Required Supplementary Information
Notes to Required Supplementary Information
June 30, 2023
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.
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99
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 nine 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 2019 - 2021, there were no changes in assumptions.
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: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to
6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund
cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long
term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the
inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
CITY OF POWAY
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Last 10 Years*
Miscellaneous Plan
100
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
1,801,815 1,869,509 1,919,815 1,880,665 2,106,424
7,769,440 8,226,054 8,411,998 8,750,527 8,950,009
1,018,162 2,664,769 (1,093,882) 1,131,639 (579,484)
(586,664) - - - 4,268,441
(5,540,276) (6,227,010) (6,625,427) (6,793,001) (7,422,494)
4,462,477 6,533,322 2,612,504 4,969,830 7,322,896
110,101,216 114,563,693 121,097,015 123,709,519 128,679,349
114,563,693 121,097,015 123,709,519 128,679,349 136,002,245
(189) - - - -
2,452,303 2,918,133 3,324,148 3,728,403 33,458,912
844,131 871,415 857,470 903,026 1,012,404
6,511,984 5,335,764 4,135,937 19,241,494 (8,859,581)
(5,540,276) (6,227,011) (6,625,427) (6,793,001) (7,422,494)
(120,673) (58,059) (118,699) (85,681) (64,017)
(229,160) 189 - - -
3,918,120 2,840,431 1,573,429 16,994,241 18,125,224
77,440,054 81,358,174 84,198,605 85,772,034 102,766,275
81,358,174 84,198,605 85,772,034 102,766,275 120,891,499
33,205,519 36,898,410 37,937,485 25,913,074 15,110,746
71.02% 69.53% 69.33% 79.86% 88.89%
11,662,050 12,831,311 12,607,269 12,763,683 13,473,879
284.73% 287.57% 300.92% 203.02% 112.15%
101
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 Level percent of payroll
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
CITY OF POWAY
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Years*
The probabilities of Retirement are based on the 2017 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 15 years of
projected mortality improvement using 90% of Scale MP-2016 published
by the Society of Actuaries.
Miscellaneous Plan
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only nine 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.
Fair value
7.00% Net of Pension Plan Investment and Administrative Expenses;
includes Inflation.
102
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
2,918,133 3,324,147 3,728,403 3,958,965 1,818,108
(2,918,133) (3,324,147) (3,728,403) (33,458,493) (1,818,108)
- - - (29,499,528) -
12,831,311 12,607,269 12,763,683 13,473,879 13,500,188
22.74% 26.37% 29.21% 29.38% 13.47%
103
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%73.52%
6/30/2020 0.28155%18,758,073 5,427,653 345.60%72.19%
6/30/2021 0.26676%11,693,283 5,418,184 215.82%83.28%
6/30/2022 0.26833%9,343,895 5,505,282 169.73%87.60%
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.
In 2019 - 2021, there were no changes in assumptions.
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*
Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting
discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS
took into account long-term market return expectations as well as the expected pension fund cash flows.
Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project
compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by
the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption
were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
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 nine years
are presented.
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105
6/30/2015 6/30/2016 6/30/2017 6/30/2018
Actuarially determined contribution 1,159,123$ 1,322,635 1,340,317 1,517,719
Contributions in relation to the actuarially
determined contributions (1,159,123) (1,172,369) (1,340,317) (1,517,719)
Contribution deficiency (excess)-$ 150,266 - -
Covered payroll 4,875,746 4,765,209 4,813,604 4,948,089
Contributions as a percentage of covered payroll 23.77% 27.76% 27.84% 30.67%
Notes to Schedule:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level percent of payroll
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 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.
The probabilities of Retirement are based on the 2017
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 nine years are
presented.
Change in Benefit Terms: There were no changesto 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 waschangedfrom 7.5 percent (net of administrativeexpense) 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.
Fair value
7.00% Net of Pension Plan Investment and
Administrative Expenses; includes Inflation.
106
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
1,766,069 1,971,402 2,186,412 2,377,145 1,497,160
(1,766,069) (1,971,402) (2,186,412) (16,225,745) (1,497,160)
- - - (13,848,600) -
5,696,517 5,427,653 5,418,184 5,505,282 5,750,758
31.00% 36.32% 40.35% 43.18% 26.03%
107
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 nine 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
108
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
227,611 171,732 159,613 137,242 135,556
1,138,559 1,245,453 1,288,577 1,315,323 1,330,737
- - - - -
382,609 368,850 155,191 39,664 (144,222)
973,111 - - - 50,309
(959,590) (1,085,388) (1,136,314) (1,203,831) (1,304,558)
1,762,300 700,647 467,067 288,398 67,822
17,760,919 19,523,219 20,223,866 20,690,933 20,979,331
19,523,219 20,223,866 20,690,933 20,979,331 21,047,153
866,896 970,122 1,090,398 1,491,927 1,278,809
1,002,486 416,083 4,539,010 (3,109,657) 1,245,584
(959,590) (1,085,388) (1,136,314) (1,203,831) (1,304,558)
(25,748) (26,853) (37,980) (33,101) (55,175)
884,044 273,964 4,455,114 (2,854,662) 1,164,660
16,062,696 16,946,740 17,220,704 21,675,818 18,821,156
16,946,740 17,220,704 21,675,818 18,821,156 19,985,816
2,576,479 3,003,162 (984,885) 2,158,175 1,061,337
86.80% 85.15% 104.76% 89.71% 94.96%
5,323,333 4,841,056 4,596,615 3,889,239 3,392,960
48.40% 62.04% -21.43% 55.49% 31.28%
109
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) 6,126,687 14.15%
6/30/2020 794,810 (970,122) (175,312) 4,880,520 19.88%
6/30/2021 1,019,979 (1,090,398) (70,419) 4,596,615 23.72%
6/30/2022 1,214,578 (1,491,927) (277,349) 3,889,239 38.36%
6/30/2023 131,842 (1,278,809) (1,146,967) 3,392,960 37.69%
Notes to Schedule:
Valuation Timing
Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Inflation
Salary Increases
Cost of Living Adjustments 2.00%
Investment Rate of Return 6.50%
Payroll Growth 2.80%
Withdrawal/Disability
Retirement Age
Mortality
Maximum Benefits and Salary
Family Composition
Form of Payment Single Life Annuity
Retirement Enhancement Plan
CITY OF POWAY
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Years*
Pre-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous CalPERS
Pension Plans after June 30, 2021.
Post-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous CalPERS
Pension Plans after June 30, 2021.
70% of active members are assumed to have an eligible beneficiary who is potentially eligible to
receive a preretirement death benefit. Females are assumed to be three years younger than males.
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.
2.30%
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 2.30% per annum
Consistent with Non-Industrial rates used to value Miscellaneous Agency CalPERS Pension Plans.
Actuarially determined contribution rates are calculated as of June 30 year end and are applied the
following fiscal year.
Consistent with the rates used to value CalPERS Miscellaneous Public Agency Pension Plans after
June 30, 2021.
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 2022-23 were from the June 30, 2022
actuarial valuation.
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only nine years are presented.
110
SUPPLEMENTARY
INFORMATION
111
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112
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.
113
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.
114
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 to 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.
115
CITY OF POWAY
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2023
AB 939
800 MHz Integrated
Fire Communication Gas Miscellaneous Waste
Protection System Tax Drainage Grants Management
ASSETS
Cash and investments -$ 115,595 2,351,913 4,867,340 594,567 777,726
Receivables:
Accounts - - - - - -
Interest - - 109,023 - - -
Due from other governments - - - - - -
Advances to fiduciary funds - - - 312,052 - -
Restricted assets:
Cash and investments with
fiscal agents - - - - - -
Total assets -$ 115,595 2,460,936 5,179,392 594,567 777,726
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable -$ - 255,821 7,192 39,030 99,635
Accrued liabilities - - 13,190 8,095 - -
Due to other funds - 158,874 - - 4,700 -
Deposits - - - - - -
Unearned revenues - - - 11,825 - -
Total liabilities - 158,874 269,011 27,112 43,730 99,635
FUND BALANCES (DEFICIT)
Restricted - - 2,191,925 5,152,280 550,837 678,091
Unassigned - (43,279) - - - -
Total fund balances (deficit) - (43,279) 2,191,925 5,152,280 550,837 678,091
Total liabilities, deferred inflows of
resources and fund balances -$ 115,595 2,460,936 5,179,392 594,567 777,726
Special Revenue Funds
116
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
306 364,537 113,657 42,832 161,564 1,429,067 245,469
- - - - - - -
- - - - - - -
33,776 30,194 - - - - -
- - - - - - -
- - - - - - -
34,082 394,731 113,657 42,832 161,564 1,429,067 245,469
306 - 990,584 204 - - -
- - - - - - -
34,082 - 153,918 - - - -
- - - - - - -
- - - - - - -
34,388 - 1,144,502 204 - - -
- 394,731 - 42,628 161,564 1,429,067 245,469
(306) - (1,030,845) - - - -
(306) 394,731 (1,030,845) 42,628 161,564 1,429,067 245,469
34,082 394,731 113,657 42,832 161,564 1,429,067 245,469
Special Revenue Funds
117
City of Poway
Combining Balance Sheet (Continued)
Non-major Governmental Funds
June 30, 2023
Abandoned
BEGIN Housing Vehicle Habitat Maintenance
Program In-lieu Fees In-lieu Districts
ASSETS
Cash and investments 19,723$ 412,231 348,694 725,512 9,850,691
Receivables:
Accounts - - - - -
Interest - - - - -
Due from other governments - - - - -
Advances to fiduciary funds - - - - -
Restricted assets:
Cash and investments with
fiscal agents - - - - -
Total assets 19,723$ 412,231 348,694 725,512 9,850,691
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable -$ - - - 153,553
Accrued liabilities - - - - 66,682
Due to other funds - - - - -
Deposits - - - - -
Unearned revenues - - - - -
Total liabilities - - - - 220,235
FUND BALANCES (deficit)
Restricted 19,723 412,231 348,694 725,512 9,630,456
Unassigned - - - - -
Total fund balances (deficit) 19,723 412,231 348,694 725,512 9,630,456
Total liabilities, deferred inflows of
resources and fund balances 19,723$ 412,231 348,694 725,512 9,850,691
Special Revenue Funds
118
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
1,043,535 102,028 112,229 3,252,226 107,304 2,205,664 226,017 29,470,427
- - 142,250 - - - - 142,250
- - - - - - - 109,023
190,681 - - - - - - 254,651
- - - - - - - 312,052
- - 596,772 - - - - 596,772
1,234,216 102,028 851,251 3,252,226 107,304 2,205,664 226,017 30,885,175
41 - - - - - - 1,546,366
- - 2,585 - - - - 90,552
- - 123,939 - - - - 475,513
- - - - - - 212,884 212,884
- - - - - - - 11,825
41 - 126,524 - - - 212,884 2,337,140
1,234,175 102,028 724,727 3,252,226 107,304 2,205,664 13,133 29,622,465
- - - - - - - (1,074,430)
1,234,175 102,028 724,727 3,252,226 107,304 2,205,664 13,133 28,548,035
1,234,216 102,028 851,251 3,252,226 107,304 2,205,664 226,017 30,885,175
Special Revenue Funds Capital Projects Funds
119
CITY OF POWAY
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2023
800 MHz
Fire Communication Gas Miscellaneous
Protection System Tax Drainage Grants
REVENUES
Taxes 651,592$ 136,430 1,245,316 1,712,952 -
Intergovernmental - - - - 439,780
Use (loss) of money and property - 3,032 26,823 54,140 2,542
Developer fees - - - 31,099 -
Assessments levied - - - - -
Other revenues - - 34,228 - -
Total revenues 651,592 139,462 1,306,367 1,798,191 442,322
EXPENDITURES
Current:
Public works - - 800,978 807,504 -
Capital outlay - - 368,108 410,178 163,298
Debt service:
Principal - 138,250 - - -
Interest and fiscal charges - 16,116 - - -
Total expenditures - 154,366 1,169,086 1,217,682 163,298
Excess (deficiency) of revenues
over (under) expenditures 651,592 (14,904) 137,281 580,509 279,024
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfer out (651,592) - (11,914) - (161,285)
Total other financing sources (uses) (651,592) - (11,914) - (161,285)
Net change in fund balances - (14,904) 125,367 580,509 117,739
Fund balances (deficit), beginning of year - (28,375) 2,066,558 4,571,771 433,098
Fund balances (deficit), end of year -$ (43,279) 2,191,925 5,152,280 550,837
Special Revenue Funds
120
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
- - - 1,504,090 - - - -
28,761 191,401 30,194 - - - - -
6,672 - 3,624 32 398 1,579 14,476 2,353
- - - - - - 938,186 42,210
- - - - - - - -
231,733 - 8,731 - 6,368 - - -
267,166 191,401 42,549 1,504,122 6,766 1,579 952,662 44,563
- - 4,122 - - - - -
276,833 165,665 35,880 2,538,038 - - 401,260 -
- - - - - - - -
- - - - - - - -
276,833 165,665 40,002 2,538,038 - - 401,260 -
(9,667) 25,736 2,547 (1,033,916) 6,766 1,579 551,402 44,563
- - - - - - - -
- - - - - - - -
- - - - - - - -
(9,667) 25,736 2,547 (1,033,916) 6,766 1,579 551,402 44,563
687,758 (26,042) 392,184 3,071 35,862 159,985 877,665 200,906
678,091 (306) 394,731 (1,030,845) 42,628 161,564 1,429,067 245,469
Special Revenue Funds
121
CITY OF POWAY
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
Non-Major Governmental Funds
For the year ended June 30, 2023
Abandoned
BEGIN Housing Vehicle Habitat Maintenance
Program In-lieu Fees In-lieu Districts
REVENUES
Taxes -$ - - - 571,874
Intergovernmental - - - - -
Use (loss) of money and property 7,439 3,759 3,408 8,777 94,228
Developer fees - 168,750 - 29,818 -
Assessments levied - - - - 2,045,086
Other revenues - - - - 70,894
Total revenues 7,439 172,509 3,408 38,595 2,782,082
EXPENDITURES
Current:
Public works - - - - 2,231,452
Capital outlay - - - - 223,020
Debt service:
Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - - - - 2,454,472
Excess (deficiency) of revenues
over (under) expenditures 7,439 172,509 3,408 38,595 327,610
OTHER FINANCING SOURCES
Transfers in - - - - 489,601
Transfer out - - - - -
Total other financing sources (uses) - - - - 489,601
Net change in fund balances 7,439 172,509 3,408 38,595 817,211
Fund balances (deficit), beginning of year 12,284 239,722 345,286 686,917 8,813,245
Fund balances (deficit), end of year 19,723$ 412,231 348,694 725,512 9,630,456
Special Revenue Funds
122
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
1,088,179 - - - - - - 6,910,433
- - - - - - - 690,136
7,163 997 301,288 30,165 1,048 21,470 42 595,455
- - - 1,441,666 - 55,784 - 2,707,513
- - - - - - - 2,045,086
- - - - - - - 351,954
1,095,342 997 301,288 1,471,831 1,048 77,254 42 13,300,577
- - - - - - - 3,844,056
809,757 - - - - - - 5,392,037
- - 1,135,470 - - - - 1,273,720
- - 1,536,260 - - - - 1,552,376
809,757 - 2,671,730 - - - - 12,062,189
285,585 997 (2,370,442) 1,471,831 1,048 77,254 42 1,238,388
- - 2,379,965 - - - - 2,869,566
- - (4,364) - - - - (829,155)
- - 2,375,601 - - - - 2,040,411
285,585 997 5,159 1,471,831 1,048 77,254 42 3,278,799
948,590 101,031 719,568 1,780,395 106,256 2,128,410 13,091 25,269,236
1,234,175 102,028 724,727 3,252,226 107,304 2,205,664 13,133 28,548,035
Capital Projects FundsSpecial Revenue Funds
123
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 644,000$ 644,000 651,592 7,592
Use (loss) of money and property 1,065 1,065 - (1,065)
Total revenues 645,065 645,065 651,592 6,527
OTHER FINANCING (USES)
Transfers out (644,000) (644,000) (651,592) (7,592)
Total other financing (uses) (644,000) (644,000) (651,592) (7,592)
Net change in fund balance 1,065 1,065 - (1,065)
Fund balance, beginning of year - - - -
Fund balance, end of year 1,065$ 1,065 - (1,065)
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, 2023
124
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 136,000$ 136,000 136,430 430
Use (loss) of money and property 777 777 3,032 2,255
Total revenues 136,777 136,777 139,462 2,685
EXPENDITURES
Debt service:
Principal 138,250 138,250 138,250 -
Interest and fiscal charges 16,087 16,087 16,116 (29)
Total expenditures 154,337 154,337 154,366 (29)
Net change in fund balance (17,560) (17,560) (14,904) 2,656
Fund balance (deficit), beginning of year (28,375) (28,375) (28,375) -
Fund balance (deficit), end of year (45,935)$ (45,935) (43,279) 2,656
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, 2023
125
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 1,435,630$ 1,435,630 1,245,316 (190,314)
Use of money and property 18,695 18,695 26,823 8,128
Other revenues - - 34,228 34,228
Total revenues 1,454,325 1,454,325 1,306,367 (147,958)
EXPENDITURES
Current:
Public works 2,418,956 2,687,501 800,978 1,886,523
Capital outlay 380,000 368,067 368,108 (41)
Total expenditures 2,798,956 3,055,568 1,169,086 1,886,482
OTHER FINANCING SOURCES
Transfers out - - (11,914) (11,914)
Total other financing sources - - (11,914) (11,914)
Net change in fund balance (1,344,631) (1,601,243) 125,367 1,726,610
Fund balance, beginning of year 2,066,558 2,066,558 2,066,558 -
Fund balance, end of year 721,927$ 465,315 2,191,925 1,726,610
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, 2023
126
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 1,424,910$ 1,424,910 1,712,952 288,042
Use of money and property 68,468 68,468 54,140 (14,328)
Developer fees 83,485 83,485 31,099 (52,386)
Total revenues 1,576,863 1,576,863 1,798,191 221,328
EXPENDITURES
Current:
Public works 1,215,059 1,304,602 807,504 497,098
Capital outlay 505,000 1,514,767 410,178 1,104,589
Total expenditures 1,720,059 2,819,369 1,217,682 1,601,687
Net change in fund balance (143,196) (1,242,506) 580,509 1,823,015
Fund balance, beginning of year 4,571,771 4,571,771 4,571,771 -
Fund balance, end of year 4,428,575$ 3,329,265 5,152,280 1,823,015
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, 2023
127
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental 276,256$ 276,256 439,780 163,524
Use of money and property 3,814 3,814 2,542 (1,272)
Total revenues 280,070 280,070 442,322 162,252
EXPENDITURES
Capital outlay 119,256 1,071,544 163,298 908,246
Total expenditures 119,256 1,071,544 163,298 908,246
OTHER FINANCING USES
Transfers out (157,000) (157,000) (161,285) (4,285)
Total other financing uses (157,000) (157,000) (161,285) (4,285)
Net change in fund balance 3,814 (948,474) 117,739 1,066,213
Fund balance, beginning of year 433,098 433,098 433,098 -
Fund balance, end of year 436,912$ (515,376) 550,837 1,066,213
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Miscellaneous Grants Special Revenue Fund
Year Ended June 30, 2023
Budget Amounts
128
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental 35,000$ 35,000 28,761 (6,239)
Use of money and property 10,510 10,510 6,672 (3,838)
Other revenue 199,000 199,000 231,733 32,733
Total revenues 244,510 244,510 267,166 22,656
EXPENDITURES
Capital outlay 355,000 430,216 276,833 153,383
Total expenditures 355,000 430,216 276,833 153,383
Net change in fund balance (110,490) (185,706) (9,667) 176,039
Fund balance, beginning of year 687,758 687,758 687,758 -
Fund balance, end of year 577,268$ 502,052 678,091 176,039
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, 2023
Budget Amounts
129
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental 212,103$ 212,103 191,401 (20,702)
Total revenues 212,103 212,103 191,401 (20,702)
EXPENDITURES
Capital outlay 212,103 324,378 165,665 158,713
Total expenditures 212,103 324,378 165,665 158,713
Net change in fund balance - (112,275) 25,736 138,011
Fund balance (deficit), beginning of year (26,042) (26,042) (26,042) -
Fund balance (deficit), end of year (26,042)$ (138,317) (306) 138,011
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, 2023
Budget Amounts
130
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Intergovernmental -$ - 30,194 30,194
Use of money and property 5,150 5,150 3,624 (1,526)
Other revenue - - 8,731 8,731
Total revenues 5,150 5,150 42,549 37,399
EXPENDITURES
Current:
Public works 4,000 4,000 4,122 (122)
Capital outlay - 265,960 35,880 230,080
Total expenditures 4,000 269,960 40,002 229,958
Net change in fund balance 1,150 (264,810) 2,547 267,357
Fund balance, beginning of year 392,184 392,184 392,184 -
Fund balance, end of year 393,334$ 127,374 394,731 267,357
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, 2023
Budget Amounts
131
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 2,568,233$ 2,568,233 1,504,090 (1,064,143)
Use of money and property 5,661 5,661 32 (5,629)
Total revenues 2,573,894 2,573,894 1,504,122 (1,069,772)
EXPENDITURES
Capital outlay 2,414,111 3,870,288 2,538,038 1,332,250
Total expenditures 2,414,111 3,870,288 2,538,038 1,332,250
Net change in fund balance 159,783 (1,296,394) (1,033,916) 262,478
Fund balance, beginning of year 3,071 3,071 3,071 -
Fund balance, end of year 162,854$ (1,293,323) (1,030,845) 262,478
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Proposition A Special Revenue Fund
Year Ended June 30, 2023
Budget Amounts
132
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 363$ 363 398 35
Other revenue 1,050 1,050 6,368 5,318
Total revenues 1,413 1,413 6,766 5,353
Net change in fund balance 1,413 1,413 6,766 5,353
Fund balance, beginning of year 35,862 35,862 35,862 -
Fund balance, end of year 37,275$ 37,275 42,628 5,353
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, 2023
Budget Amounts
133
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 2,145$ 2,145 1,579 (566)
Total revenues 2,145 2,145 1,579 (566)
EXPENDITURES
Capital outlay - 141,872 - 141,872
Total expenditures - 141,872 - 141,872
Net change in fund balance 2,145 (139,727) 1,579 141,306
Fund balance, beginning of year 159,985 159,985 159,985 -
Fund balance, end of year 162,130$ 20,258 161,564 141,306
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, 2023
Budget Amounts
134
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 6,743$ 6,743 14,476 7,733
Developer fees 954,240 954,240 938,186 (16,054)
Total revenues 960,983 960,983 952,662 (8,321)
EXPENDITURES
Capital outlay - 591,419 401,260 190,159
Total expenditures - 591,419 401,260 190,159
Net change in fund balance 960,983 369,564 551,402 181,838
Fund balance, beginning of year 877,665 877,665 877,665 -
Fund balance, end of year 1,838,648$ 1,247,229 1,429,067 181,838
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, 2023
135
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 2,337$ 2,337 2,353 16
Developer fees 40,859 40,859 42,210 1,351
Total revenues 43,196 43,196 44,563 1,367
Net change in fund balance 43,196 43,196 44,563 1,367
Fund balance, beginning of year 200,906 200,906 200,906 -
Fund balance, end of year 244,102$ 244,102 245,469 1,367
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, 2023
136
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 122$ 122 7,439 7,317
Total revenues 122 122 7,439 7,317
Net change in fund balance 122 122 7,439 7,317
Fund balance, beginning of year 12,284 12,284 12,284 -
Fund balance, end of year 12,406$ 12,406 19,723 7,317
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, 2023
137
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 2,590$ 2,590 3,759 1,169
Developer fees 47,500 47,500 168,750 121,250
Total revenues 50,090 50,090 172,509 122,419
EXPENDITURES
Capital outlay - 136,719 - 136,719
Total expenditures - 136,719 - 136,719
Net change in fund balance 50,090 (86,629) 172,509 259,138
Fund balance, beginning of year 239,722 239,722 239,722 -
Fund balance, end of year 289,812$ 153,093 412,231 259,138
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, 2023
138
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 4,629$ 4,629 3,408 (1,221)
Total revenues 4,629 4,629 3,408 (1,221)
Net change in fund balance 4,629 4,629 3,408 (1,221)
Fund balance, beginning of year 345,286 345,286 345,286 -
Fund balance, end of year 349,915$ 349,915 348,694 (1,221)
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, 2023
Budget Amounts
139
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 15,642$ 15,642 8,777 (6,865)
Developer fees 17,000 17,000 29,818 12,818
Total revenues 32,642 32,642 38,595 5,953
EXPENDITURES
Capital outlay - 22,888 - 22,888
Total expenditures - 22,888 - 22,888
Net change in fund balance 32,642 9,754 38,595 28,841
Fund balance, beginning of year 686,917 686,917 686,917 -
Fund balance, end of year 719,559$ 696,671 725,512 28,841
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, 2023
Budget Amounts
140
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 549,111$ 549,111 571,874 22,763
Use of money and property 114,827 114,827 94,228 (20,599)
Assessment levied 2,077,954 2,077,954 2,045,086 (32,868)
Other revenue - - 70,894 70,894
Total revenues 2,741,892 2,741,892 2,782,082 40,190
EXPENDITURES
Current:
Public works 2,799,430 3,038,297 2,231,452 806,845
Capital outlay 250,000 535,466 223,020 312,446
Total expenditures 3,049,430 3,573,763 2,454,472 1,119,291
OTHER FINANCING SOURCES
Transfers in 445,395 489,601 489,601 -
Total other financing sources 445,395 489,601 489,601 -
Net change in fund balance 137,857 (342,270) 817,211 1,159,481
Fund balance, beginning of year 8,813,245 8,813,245 8,813,245 -
Fund balance, end of year 8,951,102$ 8,470,975 9,630,456 1,159,481
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, 2023
141
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 1,115,480$ 1,115,480 1,088,179 (27,301)
Use of money and property 4,263 4,263 7,163 2,900
Total revenues 1,119,743 1,119,743 1,095,342 (24,401)
EXPENDITURES
Capital outlay 1,115,480 809,717 809,757 (40)
Total expenditures 1,115,480 809,717 809,757 (40)
Net change in fund balance 4,263 310,026 285,585 (24,441)
Fund balance, beginning of year 948,590 948,590 948,590 -
Fund balance, end of year 952,853$ 1,258,616 1,234,175 (24,441)
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Road Repair Special Revenue Fund
Year Ended June 30, 2023
Budget Amounts
142
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 1,354$ 1,354 997 (357)
Total revenues 1,354 1,354 997 (357)
Net change in fund balance 1,354 1,354 997 (357)
Fund balance, beginning of year 101,031 101,031 101,031 -
Fund balance, end of year 102,385$ 102,385 102,028 (357)
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, 2023
143
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 287,501$ 287,501 301,288 13,787
Total revenues 287,501 287,501 301,288 13,787
EXPENDITURES
Debt service:
Principal 1,135,470 1,135,470 1,135,470 -
Interest and fiscal charges 1,529,147 1,529,147 1,536,260 (7,113)
Total expenditures 2,664,617 2,664,617 2,671,730 (7,113)
OTHER FINANCING SOURCES (USES)
Transfers in 2,395,344 2,395,344 2,379,965 (15,379)
Transfers out (4,364) (4,364) (4,364) -
Total other financing sources (uses) 2,390,980 2,390,980 2,375,601 (15,379)
Net change in fund balance 13,864 13,864 5,159 (8,705)
Fund balance, beginning of year 719,568 719,568 719,568 -
Fund balance, end of year 733,432$ 733,432 724,727 (8,705)
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, 2023
144
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 14,795$ 14,795 30,165 15,370
Developer fees 1,413,738 1,413,738 1,441,666 27,928
Total revenues 1,428,533 1,428,533 1,471,831 43,298
EXPENDITURES
Capital outlay - 1,591,293 - 1,591,293
Total expenditures - 1,591,293 - 1,591,293
Net change in fund balance 1,428,533 (162,760) 1,471,831 1,634,591
Fund balance, beginning of year 1,780,395 1,780,395 1,780,395 -
Fund balance, end of year 3,208,928$ 1,617,635 3,252,226 1,634,591
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, 2023
145
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 286$ 286 1,048 762
Total revenues 286 286 1,048 762
Net change in fund balance 286 286 1,048 762
Fund balance, beginning of year 106,256 106,256 106,256 -
Fund balance, end of year 106,542$ 106,542 107,304 762
CITY OF POWAY
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Community Benefits Capital Projects Fund
Year Ended June 30, 2023
Budget Amounts
146
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 25,826$ 25,826 21,470 (4,356)
Developer fees 131,892 131,892 55,784 (76,108)
Total revenues 157,718 157,718 77,254 (80,464)
Net change in fund balance 157,718 157,718 77,254 (80,464)
Fund balance, beginning of year 2,128,410 2,128,410 2,128,410 -
Fund balance, end of year 2,286,128$ 2,286,128 2,205,664 (80,464)
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, 2023
147
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property 57$ 57 42 (15)
Total revenues 57 57 42 (15)
EXPENDITURES
Capital outlay - 43,008 - 43,008
Total expenditures - 43,008 - 43,008
Net change in fund balance 57 (42,951) 42 42,993
Fund balance, beginning of year 13,091 13,091 13,091 -
Fund balance, end of year 13,148$ (29,860) 13,133 42,993
CITY OF POWAY
Budget Amounts
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2023
Municipal Improvements Capital Projects Fund
148
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 150
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 160
These schedules contain information to help the reader assess the government's most
significant local revenue sources.
Debt Capacity 165
These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and the government's ability to issue additional
debt in the future.
Demographic and Economic Information 171
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 174
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.
CITY OF POWAY
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2023 2022 2021 2020 2019
Governmental activities
Net investment in capital assets 110,354,823$ 113,445,694 114,890,993 108,541,416 112,250,350
Restricted 34,339,534 30,144,735 26,451,907 25,225,622 22,030,955
Unrestricted - as restated 33,977,179 35,681,672 25,672,610 34,897,989 39,587,799
Total governmental activities net position 178,671,536 179,272,101 167,015,510 168,665,027 173,869,104
Business-type activities
Net investment in capital assets 26,178,242 21,736,424 30,061,389 30,936,131 31,143,299
Restricted - - - - -
Unrestricted - as restated 34,336,993 36,683,923 30,270,417 28,113,570 31,593,881
Total business-type activities net position 60,515,235 58,420,347 60,331,806 59,049,701 62,737,180
Primary government
Net investment in capital assets 136,533,065 135,182,118 144,952,382 139,477,547 143,393,649
Restricted 34,339,534 30,144,735 26,451,907 25,225,622 22,030,955
Unrestricted - as restated 68,314,172 72,365,595 55,943,027 63,011,559 71,181,680
Total primary government net position 239,186,771$ 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
150
2018 2017 2016 2015 2014
108,494,835 82,020,900 83,171,720 86,341,264 90,442,061
20,641,475 20,453,766 20,846,798 27,543,292 28,126,711
41,227,106 41,716,900 40,985,170 38,671,488 33,998,725
170,363,416 144,191,566 145,003,688 152,556,044 152,567,497
32,118,064 32,941,440 34,817,565 36,827,442 38,731,821
- - - 272,301 279,579
31,108,285 26,735,432 21,537,274 26,130,925 26,867,660
63,226,349 59,676,872 56,354,839 63,230,668 65,879,060
140,612,899 114,962,340 117,989,285 123,168,706 129,173,882
20,641,475 20,453,766 20,846,798 27,815,593 28,406,290
72,335,391 68,452,332 62,522,444 64,802,413 60,866,385
233,589,765 203,868,438 201,358,527 215,786,712 218,446,557
Fiscal Year
151
CITY OF POWAY
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2023 2022 2021 2020
Expenses
Governmental Activities:
General government 5,985,626$ 7,194,352 7,817,836 5,630,649
Public safety 36,002,066 26,534,269 29,504,602 29,324,572
Public works 11,280,953 9,817,864 13,889,911 14,704,110
Development services 10,791,648 7,791,058 7,625,662 9,143,279
Community services 9,794,751 7,465,888 5,812,376 6,593,797
Interest and fiscal charges 1,277,731 670,976 362,224 387,747
Total governmental activities 75,132,775 59,474,407 65,012,611 65,784,154
Business-type activities:
Water 28,670,235 30,924,172 27,535,324 25,062,142
Sewer 10,360,555 13,642,182 10,536,979 12,999,256
Total business-type activities 39,030,790 44,566,354 38,072,303 38,061,398
Total primary government expenses 114,163,565$ 104,040,761$ 103,084,914 103,845,552
Program revenues
Governmental Activities:
Charges for services:
General Government 2,034,044$ 1,844,709 1,810,549 1,937,084
Public Safety 3,578,770 2,480,786 2,197,208 1,961,348
Public Works 3,154,058 3,088,137 3,021,750 3,430,815
Development services 3,245,882 2,880,318 2,475,724 2,377,564
Community services 4,313,987 3,965,132 2,230,065 2,513,457
Operating grants and contributions 5,957,946 11,962,047 6,785,703 3,528,190
Capital grants and contributions 1,441,666 471,112 371,231 109,207
Total governmental activities 23,726,353 26,692,241 18,892,230 15,857,665
Business-type activities:
Charges for services:
Water 29,986,319 29,690,399 28,740,594 24,748,591
Sewer 11,101,447 11,982,222 9,443,436 8,632,712
Operating grants and contributions 9,680 151,314 91,825 91,825
Capital grants and contributions - - - -
Total business-type activities 41,097,446 41,823,935 38,275,855 33,473,128
Total primary government revenues 64,823,799$ 68,516,176$ 57,168,085 49,330,793
Net (expense)/revenue
Governmental activities (51,406,422)$ (32,782,166) (46,120,381) (49,926,489)
Business-type activities 2,066,656 (2,742,419) 203,552 (4,588,270)
Total primary government net expense (49,339,766)$ (35,524,585)$ (45,916,829) (54,514,759)
Fiscal Year
152
2019 2018 2017 2016 2015 2014
7,352,494 8,048,190 7,897,624 5,131,272 5,196,033 5,227,809
26,562,602 25,139,954 22,939,218 22,347,525 21,500,327 20,906,884
13,031,776 15,818,102 13,424,529 12,381,234 11,595,286 11,863,623
6,097,846 4,793,032 4,122,212 3,821,920 3,664,378 3,815,282
6,445,379 7,372,710 7,695,548 7,197,816 5,843,807 6,115,485
407,214 429,617 443,901 505,811 481,905 509,206
59,897,311 61,601,605 56,523,032 51,385,578 48,281,736 48,438,289
24,026,914 25,502,524 21,005,264 21,502,464 22,349,556 23,314,233
10,141,290 8,797,837 8,564,971 8,730,955 9,451,529 9,434,739
34,168,204 34,300,361 29,570,235 30,233,419 31,801,085 32,748,972
94,065,515 95,901,966 86,093,267 81,618,997 80,082,821 81,187,261
1,766,808 1,963,830 1,792,407 1,916,069 1,976,982 1,816,618
1,810,431 2,171,552 2,067,306 1,884,369 1,759,543 1,908,337
3,157,508 2,740,562 2,727,104 2,733,956 2,699,095 2,753,917
2,175,062 1,975,450 1,648,388 1,780,160 1,558,945 1,534,304
3,081,321 2,595,229 2,862,789 2,625,260 2,570,423 2,436,024
3,599,420 3,841,821 2,616,884 2,913,411 2,621,885 3,076,481
1,808,484 198,584 270,802 120,271 90,379 66,168
17,399,034 15,487,028 13,985,680 13,973,496 13,277,252 13,591,849
22,984,400 25,583,581 21,450,064 18,590,894 20,629,080 23,381,953
8,737,411 8,486,571 8,396,553 8,003,913 7,423,494 7,347,502
- - - - - -
- 3,589 - - - -
31,721,811 34,073,741 29,846,617 26,594,807 28,052,574 30,729,455
49,120,845 49,560,769 43,832,297 40,568,303 41,329,826 44,321,304
(42,498,277) (46,114,577) (42,537,352) (37,412,082) (35,004,484) (34,846,440)
(2,446,393) (226,620) 276,382 (3,638,612) (3,748,511) (2,019,517)
(44,944,670) (46,341,197) (42,260,970) (41,050,694) (38,752,995) (36,865,957)
Fiscal Year
153
CITY OF POWAY
Changes in Net Position (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
2023 2022 2021 2020
General revenues and Other
Changes in Net Position
Governmental Activities:
Taxes:
Property taxes 28,493,295$ 26,360,676 25,159,940 24,251,068
Sales taxes 16,023,705 17,959,219 15,952,859 14,185,047
Motor vehicle license tax - - - -
Transient occupancy tax 791,338 753,932 403,071 515,633
Other taxes 838,001 890,406 804,462 807,777
Total taxes 46,146,339 45,964,233 42,320,332 39,759,525
Investment earnings 2,435,612 (2,205,471) 731,656 3,093,107
Sale/disposal of capital assets - (531,796) - -
Miscellaneous 1,860,990 1,457,229 1,105,949 1,259,020
Transfers 362,916 354,562 312,927 610,760
Extraordinary item - - - -
Total governmental activities 50,805,857 45,038,757 44,470,864 44,722,412
Business-type activities:
Investment earnings 380,307 136,733 197,121 1,166,885
Sale/disposal of capital assets - (63,380) - -
Miscellaneous 10,841 1,112,169 1,194,359 344,666
Transfers (362,916) (354,562) (312,927) (610,760)
Extraordinary Item - - -
Total business-type activities 28,232 830,960 1,078,553 900,791
Total primary government 50,834,089$ 45,869,717 45,549,417 45,623,203
Change in Net Position
Governmental activities (600,565)$ 12,256,591 (1,649,517) (5,204,077)
Business-type activities 2,094,888 (1,911,459) 1,282,105 (3,687,479)
Total primary government 1,494,323$ 10,345,132 (367,412) (8,891,556)
Fiscal Year
154
2019 2018 2017 2016 2015 2014
23,819,845 24,153,826 22,166,004 20,455,287 18,998,523 20,188,541
14,774,047 12,462,528 12,291,613 11,615,867 11,442,003 12,047,687
- - - - - -
674,230 654,235 609,306 615,482 573,531 523,112
2,709,246 3,630,276 3,247,931 3,423,165 3,192,356 2,761,696
41,977,368 40,900,865 38,314,854 36,109,801 34,206,413 35,521,036
2,267,414 1,468,845 1,165,528 1,845,972 1,380,030 1,573,545
- - - - (385,253) -
1,237,072 3,285,592 1,805,482 1,195,244 1,330,954 1,846,762
522,111 426,823 439,366 467,591 (1,539,113) 1,425
- 26,204,302 - (9,758,882) - -
46,003,965 72,286,427 41,725,230 29,859,726 34,993,031 38,942,768
1,144,612 264,609 102,656 230,982 149,611 217,194
- - - - -
1,334,723 3,938,311 3,382,361 1,077,957 1,261,448 82,930
(522,111) (426,823) (439,366) (467,591) (310,940) (441,725)
- - - (4,078,565) - -
1,957,224 3,776,097 3,045,651 (3,237,217) 1,100,119 (141,601)
47,961,189 76,062,524 44,770,881 26,622,509 36,093,150 38,801,167
3,505,688 26,171,850 (812,122) (7,552,356) (11,453) 4,096,328
(489,169) 3,549,477 3,322,033 (6,875,829) (2,648,392) (2,161,118)
3,016,519 29,721,327 2,509,911 (14,428,185) (2,659,845) 1,935,210
Fiscal Year
155
CITY OF POWAY
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2023 2022 2021 2020 2019
General Fund
Nonspendable 14,003,892$ 13,738,495 13,267,000 12,042,735 15,550,648
Committed 23,555,523 20,441,896 20,393,896 21,233,004 20,961,853
Assigned 12,745,574 12,851,725 16,251,291 24,780,312 22,536,818
Unassigned 18,047,667 15,897,597 9,327,401 6,728,100 7,192,106
Total General Fund 68,352,656 62,929,713 59,239,588 64,784,151 66,241,425
All Other Governmental Funds
Restricted 35,064,261 30,916,053 27,237,226 25,866,759 22,587,652
Unassigned (1,074,430) (54,417) (327,588) (54,815) (29,018)
Total all Other Governmental Funds 33,989,831 30,861,636 26,909,638 25,811,944 22,558,634
Total Fund Balance 102,342,487$ 93,791,349 86,149,226 90,596,095 88,800,059
Fiscal Year
156
2018 2017 2016 2015 2014
15,639,036 10,477,915 10,286,955 10,495,426 10,134,007
19,321,583 - - 10,022,691 10,026,079
16,613,992 40,438,366 40,367,436 15,870,595 15,383,344
14,063,706 14,649,159 16,010,227 29,285,138 26,624,039
65,638,317 65,565,440 66,664,618 65,673,850 62,167,469
20,641,475 20,453,766 20,846,798 27,543,292 28,126,711
(15,860) - - - -
20,625,615 20,453,766 20,846,798 27,543,292 28,126,711
86,263,932 86,019,206 87,511,416 93,217,142 90,294,180
Fiscal Year
157
CITY OF POWAY
Changes In Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2023 2022 2021 2020
Revenues
Taxes 49,983,924$ 48,858,112$ 45,645,457 41,733,998
Licenses and permits 2,391,866 2,140,086 2,249,668 2,078,662
Intergovernmental 1,186,255 7,486,849 2,561,929 1,782,269
Charges for services 7,502,989 6,102,019 3,893,569 4,056,966
Fines and forfeitures 138,084 121,691 109,335 170,527
Use of money and property 2,624,953 (1,947,758) 1,153,513 3,730,562
Developer fees 6,795,780 4,789,988 4,471,246 3,333,550
Assessment levied 2,045,086 2,031,459 1,996,156 1,991,331
Other revenues 1,345,952 2,397,484 591,790 735,669
Total revenues 74,014,889 71,979,930 62,672,663 59,613,534
Expenditures
Current:
General government 4,122,500 14,392,602 6,021,748 4,189,609
Public safety 29,174,886 41,401,603 27,692,953 26,841,433
Public works 9,490,987 13,626,589 11,080,613 11,827,517
Development services 6,297,655 12,634,077 7,504,194 7,992,456
Community services 7,223,380 10,053,029 5,021,273 5,719,232
Capital outlay 6,872,315 5,477,761 10,340,337 6,777,582
Debt service:
Principal 1,680,966 989,498 835,000 810,000
Interest and fiscal charges 1,591,736 298,373 374,402 397,941
Issuance Costs - 361,947 - -
Transfers to fiduciary funds - - - -
Total expenditures 66,454,425 99,235,479 68,870,520 64,555,770
Excess of revenues over (under) expenditures 7,560,464 (27,255,549) (6,197,857) (4,942,236)
Other Financing Sources (Uses)
Issuance of debt - 33,263,175 - -
Proceeds from sale of capital assets - - - 4,560,967
Transfers in (out) - net 962,672 1,634,497 1,750,988 2,061,298
Total other financing sources 962,672 34,897,672 1,750,988 6,622,265
Extraordinary items - - - -
Net change in fund balance 8,523,136$ 7,642,123$ (4,446,869) 1,680,029
Debt service as a percentage of noncapital
expenditures 5.0%1.7%2.1%2.1%
Fiscal Year
158
2019 2018 2017 2016 2015 2014
41,971,756 40,900,865 38,314,854 36,109,801 34,206,413 35,521,036
2,237,766 2,309,848 2,157,912 2,248,870 2,242,928 2,117,067
4,016,199 2,968,487 2,461,909 2,809,204 2,439,771 2,198,678
4,394,947 2,682,918 2,870,826 2,629,776 2,564,852 2,386,206
174,431 150,968 137,772 121,246 135,609 184,855
2,638,552 1,376,993 1,116,686 1,664,836 1,265,837 1,495,911
4,257,642 5,538,625 4,339,215 4,317,628 4,013,227 4,806,170
1,913,839 1,900,026 1,919,533 1,926,988 1,903,369 1,898,872
603,143 3,280,099 1,802,405 1,241,968 1,328,515 1,834,531
62,208,275 61,108,829 55,121,112 53,070,317 50,100,521 52,443,326
6,165,984 4,356,172 4,920,707 4,713,981 4,372,077 4,202,841
25,247,048 24,361,353 22,842,844 21,857,490 21,299,851 20,433,826
10,796,442 11,665,054 10,914,521 10,063,808 9,526,140 9,639,766
5,741,072 4,503,384 4,305,937 4,067,434 3,811,954 3,830,435
5,834,051 5,837,896 6,197,514 5,954,740 5,212,917 4,912,545
7,249,857 10,049,051 7,898,228 2,855,748 1,603,241 2,282,947
790,000 770,000 755,000 735,000 715,000 700,000
416,310 438,961 452,512 514,008 490,336 506,527
- - - - - -
- - - - - 440,300
62,240,764 61,981,871 58,287,263 50,762,209 47,031,516 46,949,187
(32,489) (873,042) (3,166,151) 2,308,108 3,069,005 5,494,139
- - - - - -
- - - - - -
2,295,513 1,117,768 1,673,941 1,745,048 (146,043) 843,982
2,295,513 1,117,768 1,673,941 1,745,048 (146,043) 843,982
- - - (9,758,882) - -
2,263,024 244,726 (1,492,210) (5,705,726) 2,922,962 6,338,121
2.2%2.1%2.2%2.5%2.6%2.6%
Fiscal Year
159
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
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)
2023 5,969,756,384 6,805,543,470 395,257,340 13,170,557,194 (292,504,729)
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.
160
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
8,575,806,518 (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%
12,878,052,465 (69,501,526) 12,808,550,939 8.00%14,526,941 0.211%
161
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
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%
2023 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
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%
2023 1.000%0.000%0.063%0.061%1.124%
Note:
Source: San Diego County Assessor's Office
In 1978,the voters of the State of California passed Proposition13 which resulted in dramatic tax reform as it relates to property tax collections.Proposition 13 established a
property taxof 1%based upon the assessedvalue oftheproperty being taxed.The1.00%is shared byall taxing agencieswhich the subject propertyresides within.Becausethe
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.
162
CITY OF POWAY
Principal Secured Property Taxpayers
Current Year and Nine Years Ago
2023 2014
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 451,523,763$ 1 3.51%184,133,360$ 1 2.15%
HCPLS Poway I LLC 149,044,675 2 1.16%72,295,572 3 0.84%
Rreef Cpif Kirkham Way Jv LLC 117,026,823 3 0.91%0.00%
Pomerado Pavilion Mob LLC 106,797,060 4 0.83%0.00%
Madison-Lpc Poway Jv LLC 62,986,468 5 0.49%0.00%
Haven Poway LLC 61,998,833 6 0.48%0.00%
Lennar Homes Of California LLC 61,632,930 7 0.48%0.00%
Sysco Food Services Of San Diego 51,734,616 8 0.40%39,900,000 5 0.47%
Parkway Commerce Center LLC 49,596,310 9 0.39%0.00%
Hometown Poway Royal Estates LLC 47,009,786 10 0.37%39,717,270 6 0.46%
Ventas Inc 76,048,361 2 0.89%
San Miguel Valley Corp 44,572,162 4 0.52%
Toray Membrane USA Inc 34,050,825 7 0.40%
Poway Crossings Investors LLC 30,373,282 8 0.35%
Costco Wholesale Corp 29,850,000 9 0.35%
PR Stowe LLC 28,377,812 10 0.33%
Total 1,159,351,264$ 8.99%579,318,644$ 6.43%
Total City net assessed secured value 12,878,052,465$ 8,575,806,518$
Source: County of San Diego Offices of the Auditor and Controller, and Assessor's Office
163
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
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%
2023 16,977,159 16,855,335 99.28%283,896 149,071 52.51%17,261,056 17,004,407 98.51%
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
164
CITY OF POWAY
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-type Private Purpose Trust
Fiscal Year
Ended June 30,
Certificates
ofParticipation
Pension
Obligation Bonds
Subscription
Based IT Arrangements
Lease Payable
(Regional Comm System
Water
Revenue Bonds
Pension
Obligation Bonds Revenue Bonds
Total
PrimaryGovernment
Percentage
of Personal Income Per Capita
Certificates
ofParticipation Tax Allocation Bonds Loan Payable
Total
PrivatePurpose Trust
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
2023 8,929,454 33,734,722 1,334,369 438,327 14,699,489 9,760,278 - 68,896,639 1.94%1,421 - 107,908,792 - 107,908,792
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
165
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
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
2023 107,908,792 0.82%2,226
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
166
CITY OF POWAY
Direct and Overlapping Debt
As of June 30, 2023
2022-23 Assessed Valuation: 12,878,052,465
OVERLAPPING TAX AND ASSESSMENT DEBT:Debt Outstanding %
Applicable (1)
Estimated Share of
Overlapping Debt
Metropolitan Water District $19,215,000 0.353%$67,829
Palomar Community College District 641,965,146 8.54 54,823,823
Poway Unified School District School Facilities Improvement District No. 2002-1 105,410,766 39.322 41,449,621
Poway Unified School District School Facilities Improvement District No. 2007-1 160,781,672 40.248 64,711,407
Escondido Union High School District 76,648,138 0.062 47,522
San Pasqual Union School District 35,069 1.954 685
Palomar Health District 400,167,282 12.494 49,996,900
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $211,097,787
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations $229,680,000 1.96%$4,501,728
San Diego County Pension Obligation Bonds 277,990,000 1.96 5,448,604
San Diego County Superintendent of Schools Obligations 6,935,000 1.96 135,926
Palomar Community College District Certificates of Participation 1,310,000 8.54 111,874
Escondido Union High School District Certificates of Participation 47,555,000 0.062 29,484
Poway Unified School District Certificates of Participation 53,720,000 23.829 12,800,939
City of Poway Certificates of Participation 8,850,000 100 8,850,000
City of Poway Pension Obligation Bonds 43,495,000 100 33,734,722
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $65,613,277
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):$100,210,000 100.00%100,210,000
TOTAL DIRECT DEBT 44,436,872
TOTAL OVERLAPPING DEBT $334,336,342
COMBINED TOTAL DEBT $378,773,214 (2)
Ratios to 2022-23 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.64%
Total Direct Debt ($52,345,000)0.41%
Combined Total Debt 3.00%
Ratios to 2022-23 Redevelopment Successor Agency Incremental Valuation ($6,000,996,482):
Total Overlapping Tax Increment Debt 1.67%
Notes:
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded lease obligations.
Source: California Municipal Statistics, Inc. and City of Poway Finance Department
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding
debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to
issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every
taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
(1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by
determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value.
167
CITY OF POWAY
Legal Debt Margin Information
Last Ten Fiscal Years
2023 2022 2021 2020 2019
Assessed valuation 6,877,055,983$ 6,402,700,920 6,191,840,175 5,945,360,349 5,696,205,876
Conversion percentage 25%25%25%25%25%
Adjusted assessed valuation 1,719,263,996 1,600,675,230 1,547,960,044 1,486,340,087 1,424,051,469
Debt limit percentage 15%15%15%15%15%
Debt limit 257,889,599 240,101,285 232,194,007 222,951,013 213,607,720
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
Fiscal Year
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.
168
2018 2017 2016 2015 2014
5,443,613,176 5,227,958,736 5,024,927,288 4,789,751,105 4,567,470,473
25%25%25%25%25%
1,360,903,294 1,306,989,684 1,256,231,822 1,197,437,776 1,141,867,618
15%15%15%15%15%
204,135,494 196,048,453 188,434,773 179,615,666 171,280,143
- - - - -
0.00%0.00%0.00%0.00%0.00%
Fiscal Year
169
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
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
2023 - 61,755,357 8,345,000 5,324,750 13,669,750 4.52
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
170
CITY OF POWAY
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Year Population
Personal
Income
Per Capita
Personal Income Labor Force
Unemployment
Rate
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%
2023 48,483 3,556,274,126 73,351 25,500 3.4%
Sources:
Population - State of California Department of Finance
Personal Income - State of California Department of Finance/U.S. Bureau of Economic Analysis
Employment Information - State of California Employment Development Department - Fiscal Year
171
CITY OF POWAY
Full-Time-Equivalent City Employees by Function
Last Ten Fiscal Years
Function 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General government 36.5 35.75 35.50 35.50 35.98 31.21 32.44 32.44 29.48 28.96
Public safety (a)57 57.00 57.00 57.00 57.00 58.00 56.00 56.00 55.00 54.00
Public works 87 87.00 83.00 78.96 82.36 86.84 89.36 88.36 84.36 79.96
Community services 27.23 23.12 24.10 24.10 50.39 50.03 49.47 48.99 46.49 45.78
Development services 26 25.50 25.50 25.50 25.50 25.50 22.50 22.50 21.96 22.96
Total 233.73 228.37 225.10 221.06 251.23 251.58 249.77 248.29 237.29 231.66
Notes:
Amounts shown are the number of full-time-equivalents (FTEs) approved in each operating budget for the fiscal year.
Source: City of Poway FY23 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.
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173
CITY OF POWAY
Operating Indicators
Last Ten Fiscal Years
Function 2023 2022 2021 2020 2019
General government:
Business registrations issued 1,835 1,958 1,630 1,759 2,253
Vendor payments processed 5,415 6,207 6,160 6,185 6,580
Public Safety:
Arrests made 945 892 838 1,150 978
Fire emergency responses 5,102 4,968 4,757 4,780 5,706
Safety Inspections 1,595 1,047 1,577 1,692 2,100
Development Services:
Building permits issued 2,923 2,480 2,410 2,217 2,168
Building inspections 13,094 9,280 8,266 7,480 8,572
Culture and recreation:
Performing arts center attendance 51,880 37,359 500 20,496 51,806
Library-number of holdings in collection (1) (1) (1) (1) (1)
Library-number of holdings circulated 765,413 606,351 425,983 711,446 924,021
Athletic field permits issued 222 229 191 258 301
Highways and streets:
Roads resurfaced in square feet 237,162 61,856 199,661 283,121 122,250
Roads slurry sealed in square feet 5,253,714 4,712,146 4,380,343 4,313,485 4,282,280
Pot holes repaired 130 135 199 236 216
Water:
Residential water customers 12,760 12,686 12,681 12,659 12,673
Commercial water customers 500 496 501 510 509
All other water customers 861 847 845 824 821
Average daily consumption (mg) (2)7.21 5.76 8.30 7.34 7.39
Sewer:
Residential sewer customers 11,512 11,440 11,428 11,402 11,417
Commercial sewer customers 455 463 477 510 488
All other sewer customers 376 360 351 334 331
Average daily flow (mg)2.52 2.04 2.36 2.88 2.41
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
(2) After an internal review of the City's reporting mechanisms, the Average Daily Consumption (mg) data for the period
Fiscal Year
174
2018 2017 2016 2015 2014
1,859 1,987 1,509 1,510 1,285
6,203 6,689 6,623 6,705 6,426
900 900 1,079 1,214 1,069
5,146 4,755 4,564 4,229 4,099
2,451 2,652 2,587 3,069 2,899
2,465 2,013 2,444 2,070 1,504
9,023 9,600 9,162 12,488 8,221
56,573 56,637 57,908 60,276 55,652
(1) (1) (1) (1)93,951
897,531 863,874 782,599 733,689 709,823
335 285 225 232 282
204,000 306,543 306,000 237,024 299,038
4,231,308 4,627,262 4,933,522 4,378,483 4,379,695
189 191 213 193 175
12,662 12,631 12,625 12,765 12,674
500 495 493 658 645
816 812 811 /--------not reported------/
8.31 7.34 6.78 9.23 10.20
11,410 11,391 11,381 11,530 11,498
480 475 472 630 627
328 329 329 /--------not reported------/
2.35 2.68 2.48 2.53 2.73
Fiscal Year
175
CITY OF POWAY
Capital Assets Statistics
Last Ten Fiscal Years
Function 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
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 3,910 3,066 3,897 3,021 3,059 3,059 3,059 3,059 3,059 3,059
Signal controlled intersections 59 57 58 56 56 56 56 56 56 56
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 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400
Miles of trails 78 78 78 78 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 319 317 289 289 289 289 289 289 289 289
Water storage capacity (billion/gallons)1 1 1 1 1 1 1 1 1 1
Sewer:
Miles of sewer lines 186 186 186 186 186 186 186 186 186 186
Miles of storm pipes 76(1)64 64 64 64 64 64 64 64 64
Notes:
and new storm pipe installed through development.
Source:
City of Poway
Fiscal Year
(1) The 12 foot increase in miles of storm pipes from FY 2022 to FY 2023 is due to internal data review
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