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Home My WebLink AboutAgenda - Agenda Packets - Regular Meeting 3/3/2020 AGENDA CITY COUNCIL - REGULAR MEETING TUESDAY, MARCH 3, 2020 6:30 PM OPEN SESSION COMMUNITY CENTER 625 S. PICO AVENUE SAN JACINTO, CA 92583 951-487-7339 City of San Jacinto Page 1 Updated 2/27/2020 4:48 PM ANDREW KOTYUK, MAYOR CRYSTAL RUIZ, MAYOR PRO TEM ALONSO LEDEZMA, COUNCILMEMBER JOEL LOPEZ, COUNCILMEMBER RUSS UTZ, COUNCILMEMBER 1. ORGANIZATION 1.1. Roll Call 1.2. Invocation - Pastor Guy Boyer, Valley Community Church 1.3. Pledge of Allegiance - San Jacinto Leadership Academy 1.4. Mayor / Council Member Reports / Discussions 1.5. Late Items 2. PUBLIC COMMENTS 3. JOINT CONSENT CALENDARS 3.A. Consent Calendar - City Council 3.A.1. Waiver of Full Reading of Ordinance(s), and Reading by Title Only 3.A.2. Minutes of the Regular City Council Meeting of February 18, 2020 RECOMMENDATION: Staff recommends that City Council approve the City Council regular meeting minutes of February 18, 2020. Department: City Clerk 3.A.3. Treasurer’s Report at January 31, 2020 RECOMMENDATION: Receive and File Treasurer’s Report for the month ending January 31, 2020. Department: Finance City of San Jacinto Page 2 Updated 2/27/2020 4:48 PM 3.A.4. Authorization for the City Manager to apply for, and accept, a Local Government Planning Support Grant Program to further the Envision San Jacinto Program and supplement funding received under the SB 2 Planning Grant for the PermitsPlus Replacement Project. RECOMMENDATION: That the City Council ADOPT: 1. Resolution No. 3791 thereby authorizing application for, and receipt of, Local Government Planning Support Grant Program funds from the Department of Housing and Community Development for a reimbursable grant of $150,000; 2. Authorize the City Manager to execute the Standard Agreement pursuant to the NOFA. Department: Community Development 3.B. Consent Calendar - Successor Agency to the Redevelopment Agency of the City of San Jacinto 4. DISCUSSION ITEMS 4.1. Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2019 RECOMMENDATION: Staff recommends that the City Council receive and file the Annual Financial Report of the City of San Jacinto for the fiscal year ended June 30, 2019, as well as the “SAS 114” Report and the “GAS” Report. Department: Finance 4.2. Planning Commission Ad Hoc Committee Appointment Recommendations RECOMMENDATION: Staff recommends that the City Council appoint one of the candidates that was interviewed by the Planning Commission Ad Hoc Committee to fill the term left vacant by Planning Commissioner Leslie Moore. Department: City Clerk 5. CITY MANAGER UPDATE 6. FUTURE REQUESTS FROM CITY COUNCIL TO STAFF 7. ADJOURNMENT DOCUMENTS RELATED TO OPEN SESSION AGENDAS (SB343) - Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the public counter located in the Administration Building of City Hall, 595 S. San Jacinto Avenue, San Jacinto, CA 92583. City of San Jacinto Page 3 Updated 2/27/2020 4:48 PM I, Lori Matley, Deputy City Clerk of the City of San Jacinto, do hereby certify that I caused to be posted the foregoing agenda this 27th day of February 2020 as requested by law. Lori Matley, Deputy City Clerk March 3, 2020 TO: City Council REQUESTED BY: Angela Walton, City Clerk APPROVED BY: Robert A. Johnson, City Manager SUBJECT: Minutes RECOMMENDATION: Staff recommends that City Council approve the City Council regular meeting minutes of February 18, 2020. ATTACHMENTS: 2-18-20 Regular Meeting Minutes Draft 3.A.2 Packet Pg. 4 ACTION MINUTES CITY COUNCIL – REGULAR MEETING TUESDAY, FEBRUARY 18, 2020 6:30 PM OPEN SESSION SAN JACINTO COMMUNITY CENTER 625 S. PICO AVE SAN JACINTO, CA 92583 951-487-7339 1. ORGANIZATION Mayor Pro Tem Crystal Ruiz called the meeting to order at 6:00 pm. 1.1. Roll Call City Clerk Angela Walton conducted the roll call: Present: Mayor Pro Tem Crystal Ruiz, Councilmember Alonso Ledezma, Councilmember Joel Lopez, Councilmember Russ Utz Absent: Mayor Andrew Kotyuk M/S/C (Utz/Ledezma) moved to excuse the absences of Mayor Kotyuk. Motion carried 4/0. Ayes: Ledezma, Lopez, Ruiz, Utz Nays: None Absent: Kotyuk Abstain: None 1.2. Invocation Pastor Jeff Johnson of San Jacinto Assembly of God Church gave the invocation. 1.3. Pledge of Allegiance The Pledge of Allegiance was led by Councilmember Lopez. 1.4. Mayor/Council Member Reports / Discussions ANDREW KOTYUK, MAYOR CRYSTAL RUIZ, MAYOR PRO TEM ALONSO LEDEZMA, COUNCILMEMBER JOEL LOPEZ, COUNCILMEMBER RUSS UTZ, COUNCILMEMBER 3.A.2.a Packet Pg. 5 Attachment: 2-18-20 Regular Meeting Minutes Draft (Minutes) Councilmembers provided their reports. 1.5. Late Items There were no late items. 2. PUBLIC COMMENTS ● Jim Pangrazzi 3. JOINT CONSENT CALENDARS City Council Consent Calendar Item 3.A and Successor Agency Item 3.B Consent Calendars were heard concurrently. 3.A Consent Calendar – City Council 3.A.1. Waiver of Full Reading of Ordinance(s), and Reading by Title Only 3.A.2. Minutes of the Regular City Council Meeting of February 4, 2020 / City Clerk / Approve 3.A.3. Warrants and Disbursements – January 2020 / Finance / Approve 3.A.4. Appropriation of Available Zone 45 LLPD 2 Funds to Upgrade the Pumps and Operation System at the Tamarisk Basin Located on Cottonwood Ave and Center Grove Way / Stormwater / Approve 3.A.5. Adoption of Resolution No. 3787; Maintaining the Benefit Assessment for County Service Area 152 for Fiscal Years 2020-2021 and 2021-2022 / Stormwater / Approve 3.A.6. Additional Funding for Bath Well Rehabilitation / Water / Approve 3.A.7. Approving and Adopting a Revision to the Existing Deferred Compensation Plans / Human Resources / Approve 3.B Consent Calendar – Successor Agency to the Redevelopment Agency of the City of San Jacinto M/S/C (Ledezma/Utz) moved to approve the Consent Calendar. Motion carried 4/0. Ayes: Ledezma, Lopez, Ruiz, Utz Nays: None Absent: Kotyuk Abstain: None 3.A.2.a Packet Pg. 6 Attachment: 2-18-20 Regular Meeting Minutes Draft (Minutes) 4. PUBLIC HEARING 4.1. P19-038 – A proposal by the City of San Jacinto to amend Title 17- Development Code of the Municipal Code to identify and regulate Industrial Hemp as a land use Community Development Director Travis Randel presented the staff report. Mayor Pro Tem Ruiz opened the Public Hearing at 6:58 pm. Public Speakers: ● Steve Brown ● Chris Minor ● George Cordero ● Louis Calderon ● Jim Pangrazzi Mayor Pro Tem Ruiz closed the Public Hearing at 7:12 pm. Councilmember Ledezma made a motion to extend moratorium with the exception of the five current Hemp license holders. There was no second. City Attorney Maurer clarified the intent of the Moratorium and Ordinance No. 20- 01. Councilmember Utz proposed a motion to eliminate the current Moratorium and reject the proposed Ordinance No. 20-01. Councilmember Ledezma seconded Councilmember Utz’s motion. Mayor Pro Tem Ruiz made a substitute motion to bring back the Hemp Moratorium to a future council meeting, to consider extending the Moratorium with the current terms for an additional year and reject proposed Ordinance No. 20-01. City Attorney Maurer clarified for the record the two motions currently before the council. Councilmember Ledezma seconded Mayor Pro Tem Ruiz’s motion. City Clerk Angela Walton called for a vote on Mayor Pro Tem Ruiz’s motion. M/S/C (Ruiz/Ledezma) moved to set for a future agenda item the extension of the Hemp Moratorium to consider extending for an additional year with the current terms, including extending the exception for the five growers who registered prior to the adoption of the Moratorium. Motion carried 3/1. Ayes: Ledezma, Lopez, Ruiz Nays: Utz Absent: Kotyuk Abstain: None 3.A.2.a Packet Pg. 7 Attachment: 2-18-20 Regular Meeting Minutes Draft (Minutes) 5. DISCUSSION ITEMS 5.1. Sanderson Avenue Safety Improvements Project (CIP 17 -004) Federal Project Number FPN HSIPL-5075(021) City Engineer Stuart McKibbin presented the staff report. M/S/C (Ledezma/Lopez) moved to approve Sanderson Avenue Safety Improvements Project. Motion carried 4/0. Ayes: Ledezma, Lopez, Ruiz, Utz Nays: None Absent: Kotyuk Abstain: None 6. FUTURE REQUESTS FROM CITY COUNCIL TO STAFF There were none. At this time, City Manager Johnson invited Chief Bill Weiser to inform City Council of a joint Police and Fire training session at North Mountain Middle School on February 19, 2020 at 10:30 am. 7. ADJOURNMENT With no further business before the City Council, Mayor Pro Tem Ruiz adjourned the Regular Meeting of the City Council at 9:36 pm in honor of Joel Ortiz Sr. CITY OF SAN JACINTO: ____________________ Andrew Kotyuk, Mayor ATTEST: _____________________________ Angela Walton, City Clerk Approved as read: Approved as amended: 3.A.2.a Packet Pg. 8 Attachment: 2-18-20 Regular Meeting Minutes Draft (Minutes) March 3, 2020 TO: City Council REQUESTED BY: Tom Prill, Deputy City Manager APPROVED BY: Robert A. Johnson, City Manager SUBJECT: Treasurer’s Report at January 31, 2020 RECOMMENDATION: Receive and File Treasurer’s Report for the month ending January 31, 2020. BACKGROUND: The Treasurer’s Report is required to be presented to the governing body at least quarterly in accordance with California Government Code Section 53600 et. seq. DISCUSSION: Total Cash and City Investments increased 11.39% during the month. This includes cash, cash in bank and cash with trustee. The attached Treasurer’s report is a “snapshot” report of our cash position on the last day of the month in all of our accounts. A section demonstrating compliance with the adopted Investment Policy and a chart depicting historical interest rates for certain positions is also included. Detailed statements of investments from Chandler Asset Management and Public Trust Advisors have also been included. FISCAL IMPACT: None. ATTACHMENTS: 2019-20 January Treasurer's Report 3.A.3 Packet Pg. 9 TREASURER'S REPORT FOR THE MONTH ENDING JANUARY 31, 2020 12/31/2019 1/31/2020 % change 1/31/2020 COMPUTED INVESTMENT INSTITUTION INTEREST JAN PURCHASE MATURITY PREV. MONTH CURRENT from prior MARKET ACCR. INT.AVERAGE TYPE SERIAL #RATE YIELD INTEREST DATE DATE BALANCE BALANCE month VALUE & MKT. VALUE DURATION STATE POOL L.A.I.F.2.038%2.057%$27,791 Various Open $16,135,946 N $15,235,497 -5.58%$15,263,288 $27,791 MONEY MARKET Bank of Hemet 0.150%0.150%$163 Various Open $959,063 Q $6,034,226 529.18%$6,034,226 $0 DEMAND Acct - old Bank of Hemet 0.000%0.000%N/A Various Open $144,358 Q $357,571 147.70%$357,571 $0 DEMAND Acct - new Bank of Hemet 0.000%0.000%N/A Various Open $345,119 Q $282,559 -18.13%$282,559 $0 PAYROLL Account Bank of Hemet 0.000%0.000%N/A Various Open $133,062 Q $14,724 -88.93%$14,724 $0 MONEY MARKET Mechanics Bank 0.050%0.050%$1 Various Open $76,718 Q $27,615 -64.00%$27,615 $0 MONEY MARKET Mechanics Bank 0.200%0.200%$79 Various Open $474,181 Q $449,709 -5.16%$449,709 $0 CCA Lockbox River City Bank 0.000%0.000%$0 Various Open $766,607 Q $1,262,058 64.63%$1,262,058 $0 MANAGED Acct - CAM Chandler / U.S. Bank - Gov't Ob Fund 1.170%1.176%$178 Various Various $30,286 L $70,499 132.78%$70,499 $0 0.00 MANAGED Acct - CAM Chandler / U.S. Bank - Agency 1.990%2.008%$13,472 Various Various $4,492,847 C $4,471,996 -0.46%$4,569,781 $97,785 2.23 MANAGED Acct - CAM Chandler / U.S. Bank - Commercial 0.000%0.000%$0 Various Various $197,991 E $0 -100.00%$0 $0 0.00 MANAGED Acct - CAM Chandler / U.S. Bank - US Corporate 2.470%2.498%$10,030 Various Various $2,300,353 F $2,300,353 0.00%$2,344,457 $44,104 2.01 MANAGED Acct - CAM Chandler / U.S. Bank - US Treasury 2.040%2.059%$0 Various Various $3,153,837 A $3,374,997 7.01%$3,462,354 $87,357 2.47 MANAGED Acct - CAM Chandler / U.S. Bank - Asset-Backed Sec.2.370%2.396%$0 Various Various $569,573 J $550,734 -3.31%$556,054 $5,320 1.09 MANAGED Acct - PTA PTA / U.S. Bank - Gov't Ob Fund 1.180%1.186%$0 Various Various $35,919 L $70,698 96.83%$70,698 $0 0.00 MANAGED Acct - PTA PTA / U.S. Bank - Agency Bond 2.609%2.640%$1,706 Various Various $651,714 C $651,714 0.00%$668,839 $17,125 1.19 MANAGED Acct - PTA PTA / U.S. Bank - Agency CMBS 2.563%2.593%$686 Various Various $319,688 C $319,688 0.00%$327,783 $8,095 2.46 MANAGED Acct - PTA PTA / U.S. Bank - Agency SPC 2.060%2.080%$1,338 Various Various $547,557 C $547,557 0.00%$555,706 $8,149 3.43 MANAGED Acct - PTA PTA / U.S. Bank - US Corporate 2.378%2.404%$3,600 Various Various $554,176 F $554,176 0.00%$565,742 $11,566 2.41 MANAGED Acct - PTA PTA / U.S. Bank - US Treasury 2.009%2.028%$27,553 Various Various $8,617,455 A $8,617,455 0.00%$8,779,031 $161,576 2.60 MANAGED Acct - PTA PTA / U.S. Bank - Municipal Bonds 0.000%0.000%$0 Various Various $0 D $0 0.00%$0 $0 0.00 MANAGED Acct - PTA PTA / U.S. Bank - Asset-Backed Sec.0.000%0.000%$0 Various Various $0 J $0 0.00%$0 $0 0.00 CASH Cash in EOC Lockbox 0.000%0.000%N/A Various n/a $5,000 Q $5,000 0.00%$5,000 $0 CASH Cash on Hand 0.000%0.000%N/A Various n/a $850 Q $850 0.00%$850 $0 TOTAL CITY INVESTMENTS & FUNDS 1.684%1.697%$86,597 $40,512,300 $45,199,676 11.57%$45,668,544 $468,868 Annual Return Based on Previous Month Balance 1.730% RESTRICTED CASH WITH FISCAL AGENT (BOND FUNDS) Trustee STREETLIGHT ACQUISITION Mutual Fund Wilmington Blackrock Liquidity Funds XXXXX3-00X 1.250%1.257%Various Open $74,861 K $73,447 -1.89%$73,447 $0 CFD NO. 2002-1 Mutual Fund Union Bank Blackrock Prov. T-Fund XXXX16090X 1.470%1.480%Various Open $1,835,963 K $1,838,311 0.13%$1,838,311 $0 2005 RDA SAN JACINTO TAX ALLOCATION BONDS Mutual Fund Union Bank Blackrock Prov. T-Fund XXXX75750X 1.470%1.480%Various Open $242 K $142,250 58680.99%$142,250 $0 TOTAL CASH WITH FISCAL AGENT $1,911,066 $2,054,008 7.48%$2,054,008 $0 TOTAL ALL FUNDS $42,423,366 $47,253,684 11.39%$47,722,552 $468,868 Page 1 3.A.3.a Packet Pg. 10 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) TREASURER'S REPORT FOR THE MONTH ENDING JANUARY 31, 2020 12/31/2019 1/31/2020 % change 1/31/2020 COMPUTED INVESTMENT INSTITUTION INTEREST JAN PURCHASE MATURITY PREV. MONTH CURRENT from prior MARKET ACCR. INT.AVERAGE TYPE SERIAL #RATE YIELD INTEREST DATE DATE BALANCE BALANCE month VALUE & MKT. VALUE DURATION PER INVESTMENT POLICY:Maximum %Current %In Compliance? Level 1 - Investments U.S. Treasury Bills, Notes and Bonds 100%25%Yes A $11,992,452 Negotiable CDs 30%0%Yes B $0 Obligations issued by U.S. Government Agencies 100%13%Yes C $5,990,955 Municipal Bonds 100%0%Yes D $0 Commercial Paper 25%0%Yes E $0 Medium Term Notes 30%6%Yes F $2,854,529 Repurchase Agreements 100%0%Yes G $0 Banker's Acceptances 40%0%Yes H $0 Time Deposits & CDARS 30%0%Yes I $0 Mortgage pass-through / asset-backed securities 20%1%Yes J $550,734 Mutual Funds (Limited to U.S. Treasuries)18%4%Yes K $2,054,008 Mutual Funds (Limited to U.S. Govt. Sec.)18%0%Yes L $141,197 Level 2 - Investments Money Market Funds (non-brokered)20%0%Yes M $0 LAIF 70%32%Yes N $15,235,497 RCIF 70%0%Yes O $0 Other JPA Pool 50%0%Yes P $0 Cash & Demand Accounts n/a n/a n/a Q $8,434,312 $47,253,684 I CERTIFY THAT THESE INVESTMENTS COMPLY WITH ALL STATE LAWS PERTAINING TO THE INVESTMENT OF LOCAL AGENCY FUNDS AND THE CITY OF SAN JACINTO'S INVESTMENT POLICIES. CITY OF SAN JACINTO MEETS OR EXCEEDS THE SIX MONTH CASH FLOW REQUIREMENTS AS PER GOVERNMENT CODE 53646(b)(3). KALEENA RICHARDS, TREASURER City of San Jacinto Reviewed By: Deputy City Manager - February 23, 2020 Page 2 3.A.3.a Packet Pg. 11 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) - 0.500 1.000 1.500 2.000 2.500 3.000 2/173/174/175/176/177/178/179/1710/1711/1712/171/182/183/184/185/186/187/188/189/1810/1811/1812/181/192/193/194/195/196/197/198/199/1910/1911/1912/191/20Interest Rates -2/17 to 1/20 LAIF LAMMA-BoH MMA-Rabo PIMMA-Rabo Chandler PTA 3.A.3.a Packet Pg. 12 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) MONTHLY ACCOUNT STATEMENT City of San Jacinto - Account #10167 JANUARY 1, 2020 THROUGH JANUARY 31, 2020 Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures. CHANDLER ASSET MANAGEMENT chandlerasset.com Chandler Team: For questions about your account, please call (800) 317-4747, or contact operations@chandlerasset.com Custodian US Bank Christopher Isles (503) 464-3685 3.A.3.a Packet Pg. 13 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) ACCOUNT SUMMARY Beg. Values as of 12/31/19 End Values as of 1/31/20 Market Value 10,872,022 10,955,739 Accrued Interest 51,005 47,406 Total Market Value 10,923,027 11,003,145 Income Earned 19,129 19,117 Cont/WD -1,014 Par 10,727,551 10,748,811 Book Value 10,758,172 10,779,873 Cost Value 10,744,887 10,768,579 TOP ISSUERS Government of United States 31.5% Federal Home Loan Bank 21.9% Federal National Mortgage Assoc 11.4% Federal Home Loan Mortgage Corp 8.3% Nissan ABS 2.0% Apple Inc 1.9% Wal-Mart Stores 1.9% Oracle Corp 1.8% Total 80.5% PORTFOLIO CHARACTERISTICS Average Modified Duration 2.19 Average Coupon 2.13% Average Purchase YTM 2.12% Average Market YTM 1.48% Average S&P/Moody Rating AA/Aa1 Average Final Maturity 2.39 yrs Average Life 2.28 yrs CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION Portfolio Summary As of January 31, 2020 City of San Jacinto Account #10167 PERFORMANCE REVIEW Annualized TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS 6/30/2012 City of San Jacinto 0.74%0.95%0.74%4.26%3.30%2.35%1.69%N/A 1.38% ICE BAML 1-3 Yr US Treasury Index 0.54%0.72%0.54%3.83%2.99%1.98%1.40%N/A 1.16% ICE BAML 1-3 Yr US Corp/Govt Rated AAA-A Index 0.54%0.76%0.54%4.04%3.14%2.18%1.58%N/A 1.36% Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 1 3.A.3.a Packet Pg. 14 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Category Standard Comment Municipal Securities "A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer Complies Treasury Issues No Limitation Complies Agency Issues No Limitation Complies Supranationals "AA" rated or better by a NRSRO; 30% maximum; 10% max per issuer; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-American Development Bank ("IADB") Complies Banker’s Acceptances "A-1" short term debt rated or higher by at least two NRSROs; and "A" long-term debt rated or higher by at least two NRSROs; 40% maximum; 5% max per issuer; 180 days max maturity Complies Commercial Paper "A-1" short term debt rated or higher by at least two NRSROs; and "A" long-term debt rated or higher by at least two NRSROs; 25% maximum; 5% max per issuer; 270 days max maturity; Issuer is a corporation organized and operating in the U.S. with assets > $500 million Complies Negotiable Certificates of Deposit "A" long-term issuer rated category or higher by at least two NRSROs; and/or "A-1" short term rated or higher by at least two NRSROs; 30% maximum; 5% max per issuer Complies Federally Insured Certificates of Deposit (CDs)/ Time Deposit (TDs) 20% maximum (combined FDIC insured and collateralized TD/ CD); Amount per institution is limited to maximum covered under federal insurance Complies Collateralized Certificates of Deposit (CDs)/Time Deposit (TDs)/ "A" long-term debt rated category or higher by at least two NRSROs; and/or "A-1" short term debt rated or higher by at least two NRSROs; 20% maximum (combined FDIC and collateralized TD/ CD)Complies Corporate Medium Term Notes "A" rated category or better by at least two NRSROs; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S. Complies Mutual Fund & Money Market Mutual Fund Highest rating or "AAA" rated by two NRSROs; SEC registered adviser with AUM >$500 million and experience > 5 years; 20% maximum in Mutual Funds and Money Market Mutual Funds; 10% max per one Mutual Fund; 20% max in Money Market Mutual Fund Complies Asset-Backed (ABS), Mortgage-Backed Securities; Mortgage Pass-Throughs; Collateralized Mortgage Obligations (CMOs) "AA" rated category or better by at least two NRSROs; "A" issuer debt rated category or higher by at least two NRSROs; 20% maximum; 5% max per issuer Complies Local Agency Investment Fund (LAIF) 70% of the portfolio may be invested in LAIF, up to the maximum permitted balance; Not used by investment adviser Complies Local Government Investment Pools and Joint Powers Authority Pools Riverside County Investment Fund- 70% max of the total portfolio JPA Pools- 50% max of the total portfolio Repurchase Agreements 102% collateralized; 1 year max maturity Complies Prohibited Securities Inverse floaters; Ranges notes, Interest-only strips from mortgaged backed securities; Zero interest accrual securities; Margin purchasing or selling; Reverse repurchase agreements; Foreign currency denominated securities Complies Max Callables 20% maximum callable securities (does not include "make whole call" securities)Complies Max Per Issuer 5% of portfolio per issuer (except U.S. Government, its Agencies and enterprises, Money Market Mutual Funds, Mutual Funds, LAIF, LGIP, Supranationals, or unless otherwise specified in the investment policy)Complies Maximum maturity 5 years Complies City of San Jacinto As of January 31, 2020 Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. Statement of Compliance 3.A.3.a Packet Pg. 15 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) BOOK VALUE RECONCILIATION BEGINNING BOOK VALUE $10,758,171.50 Acquisition + Security Purchases $445,458.16 + Money Market Fund Purchases $488,576.50 + Money Market Contributions $0.00 + Security Contributions $0.00 + Security Transfers $0.00 Total Acquisitions $934,034.66 Dispositions - Security Sales $0.00 - Money Market Fund Sales $447,349.63 - MMF Withdrawals $1,013.57 - Security Withdrawals $0.00 - Security Transfers $0.00 - Other Dispositions $0.00 - Maturites $445,000.00 - Calls $0.00 - Principal Paydowns $18,953.37 Total Dispositions $912,316.57 Amortization/Accretion +/- Net Accretion ($16.19) ($16.19) Gain/Loss on Dispositions +/- Realized Gain/Loss $0.00 $0.00 ENDING BOOK VALUE $10,779,873.40 CASH TRANSACTION SUMMARY BEGINNING BALANCE $30,286.08 Acquisition Contributions $0.00 Security Sale Proceeds $0.00 Accrued Interest Received $0.00 Interest Received $24,445.45 Dividend Received $177.68 Principal on Maturities $445,000.00 Interest on Maturities $0.00 Calls/Redemption (Principal)$0.00 Interest from Calls/Redemption $0.00 Principal Paydown $18,953.37 Total Acquisitions $488,576.50 Dispositions Withdrawals $1,013.57 Security Purchase $445,458.16 Accrued Interest Paid $1,891.47 Total Dispositions $448,363.20 ENDING BOOK VALUE $70,499.38 Reconciliation Summary As of January 31, 2020 City of San Jacinto California Account #10167 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 3 3.A.3.a Packet Pg. 16 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Holdings Report As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration ABS 47788BAD6 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 41,422.03 07/26/2018 3.16% 40,805.56 41,095.14 99.97 1.93% 41,408.73 33.51 0.38% 313.59 Aaa / NR AAA 1.71 0.30 47789JAB2 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 34,178.91 03/05/2019 2.87% 34,177.36 34,177.86 100.37 1.87% 34,306.12 43.29 0.31% 128.26 Aaa / NR AAA 1.87 0.37 89238KAD4 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 72,710.72 10/17/2019 1.97% 72,693.68 72,695.82 100.12 1.68% 72,801.39 50.68 0.66% 105.57 Aaa / AAA NR 1.97 0.48 43815HAC1 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 70,000.00 08/21/2018 2.98% 69,990.40 69,993.84 101.20 1.60% 70,840.00 57.36 0.64% 846.16 Aaa / NR AAA 2.56 0.87 65478WAE5 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 130,000.00 04/16/2019 2.56% 128,080.47 128,689.41 99.86 1.77% 129,820.60 79.73 1.18% 1,131.19 Aaa / NR AAA 2.96 0.36 43815NAC8 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 80,000.00 08/20/2019 1.79% 79,999.34 79,999.43 100.33 1.55% 80,260.24 63.29 0.73% 260.81 Aaa / AAA NR 3.54 1.98 477870AC3 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 40,000.00 07/16/2019 2.23% 39,991.51 39,992.53 101.19 1.68% 40,475.00 39.29 0.37% 482.47 Aaa / NR AAA 3.87 2.19 65479JAD5 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 85,000.00 10/16/2019 1.94% 84,995.51 84,995.77 100.83 1.57% 85,701.50 72.91 0.78% 705.73 Aaa / AAA NR 4.46 2.22 Total ABS 553,311.66 2.37% 550,733.83 551,639.80 1.68% 555,613.58 440.06 5.05% 3,973.78 Aaa / AAA AAA 3.00 1.09 AGENCY 3135G0T29 FNMA Note 1.5% Due 2/28/2020 205,000.00 08/28/2017 1.48% 205,102.50 205,003.03 99.99 1.60% 204,981.76 1,306.88 1.87% (21.27) Aaa / AA+ AAA 0.08 0.08 3137EAEF2 FHLMC Note 1.375% Due 4/20/2020 250,000.00 07/27/2017 1.54% 248,900.00 249,912.84 99.99 1.44% 249,964.00 964.41 2.28% 51.16 Aaa / AA+ AAA 0.22 0.22 3137EADR7 FHLMC Note 1.375% Due 5/1/2020 225,000.00 08/24/2016 1.05% 227,637.00 225,176.45 99.95 1.58% 224,884.58 773.44 2.05% (291.87) Aaa / AA+ AAA 0.25 0.25 313383HU8 FHLB Note 1.75% Due 6/12/2020 130,000.00 10/14/2015 1.38% 132,181.40 130,169.18 100.07 1.55% 130,090.22 309.65 1.19% (78.96) Aaa / AA+ NR 0.36 0.36 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 4 3.A.3.a Packet Pg. 17 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Holdings Report As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration AGENCY 3130A5Z77 FHLB Note 1.83% Due 7/29/2020 125,000.00 10/27/2015 1.46% 127,132.50 125,219.88 100.13 1.56% 125,166.75 12.71 1.14% (53.13) Aaa / AA+ AAA 0.49 0.49 3137EAEK1 FHLMC Note 1.875% Due 11/17/2020 225,000.00 01/18/2018 2.19% 223,042.50 224,450.46 100.29 1.51% 225,642.83 867.19 2.06% 1,192.37 Aaa / AA+ AAA 0.80 0.78 3130A3UQ5 FHLB Note 1.875% Due 12/11/2020 225,000.00 01/28/2016 1.53% 228,642.75 225,643.32 100.31 1.51% 225,697.95 585.94 2.06% 54.63 Aaa / AA+ NR 0.86 0.85 3130A7CV5 FHLB Note 1.375% Due 2/18/2021 200,000.00 03/10/2016 1.61% 197,812.00 199,535.73 99.85 1.52% 199,694.80 1,245.14 1.83% 159.07 Aaa / AA+ AAA 1.05 1.03 3135G0N82 FNMA Note 1.25% Due 8/17/2021 315,000.00 01/26/2017 2.02% 304,579.80 311,463.79 99.82 1.37% 314,443.40 1,793.75 2.87% 2,979.61 Aaa / AA+ AAA 1.55 1.52 313378WG2 FHLB Note 2.5% Due 3/11/2022 300,000.00 03/13/2018 2.65% 298,323.00 299,115.49 102.31 1.38% 306,941.40 2,916.67 2.82% 7,825.91 Aaa / AA+ NR 2.11 2.04 313379Q69 FHLB Note 2.125% Due 6/10/2022 200,000.00 06/20/2017 1.87% 202,370.00 201,122.98 101.76 1.36% 203,526.20 602.08 1.86% 2,403.22 Aaa / AA+ AAA 2.36 2.29 3135G0W33 FNMA Note 1.375% Due 9/6/2022 200,000.00 09/05/2019 1.49% 199,304.00 199,397.99 100.06 1.35% 200,125.60 1,107.64 1.83% 727.61 Aaa / AA+ AAA 2.60 2.53 3130A3KM5 FHLB Note 2.5% Due 12/9/2022 100,000.00 09/10/2019 1.60% 102,813.00 102,477.72 103.18 1.36% 103,179.50 361.11 0.94% 701.78 Aaa / AA+ NR 2.86 2.75 3135G0T94 FNMA Note 2.375% Due 1/19/2023 290,000.00 10/17/2018 3.07% 281,993.10 284,416.31 102.94 1.36% 298,532.67 229.58 2.72% 14,116.36 Aaa / AA+ AAA 2.97 2.86 3137EAEN5 FHLMC Note 2.75% Due 6/19/2023 200,000.00 11/13/2018 3.08% 197,176.00 197,923.23 104.64 1.34% 209,288.80 641.67 1.91% 11,365.57 Aaa / AA+ AAA 3.38 3.23 313383YJ4 FHLB Note 3.375% Due 9/8/2023 200,000.00 12/27/2018 2.73% 205,630.00 204,316.88 106.93 1.40% 213,852.00 2,681.25 1.97% 9,535.12 Aaa / AA+ NR 3.61 3.36 3130A0F70 FHLB Note 3.375% Due 12/8/2023 220,000.00 01/30/2019 2.71% 226,593.40 225,231.56 107.50 1.37% 236,500.88 1,093.13 2.16% 11,269.32 Aaa / AA+ AAA 3.85 3.61 3130A1XJ2 FHLB Note 2.875% Due 6/14/2024 210,000.00 Various 1.96% 219,055.20 217,922.69 106.15 1.42% 222,913.12 788.22 2.03% 4,990.43 Aaa / AA+ NR 4.37 4.10 3130A2UW4 FHLB Note 2.875% Due 9/13/2024 150,000.00 10/29/2019 1.76% 157,737.00 157,328.42 106.67 1.38% 160,010.55 1,653.13 1.47% 2,682.13 Aaa / AA+ AAA 4.62 4.29 3130A3GE8 FHLB Note 2.75% Due 12/13/2024 250,000.00 12/16/2019 1.77% 261,672.50 261,377.97 106.44 1.38% 266,109.50 916.67 2.43% 4,731.53 Aaa / AA+ NR 4.87 4.55 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 5 3.A.3.a Packet Pg. 18 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Holdings Report As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration AGENCY 3135G0X24 FNMA Note 1.625% Due 1/7/2025 225,000.00 01/16/2020 1.69% 224,298.00 224,303.80 100.96 1.42% 227,170.80 213.28 2.07% 2,867.00 NR / AA+ AAA 4.94 4.72 Total Agency 4,445,000.00 1.99% 4,471,995.65 4,471,509.72 1.43% 4,548,717.31 21,063.54 41.53% 77,207.59 Aaa / AA+ AAA 2.34 2.23 CORPORATE 857477AS2 State Street Bank Note 2.55% Due 8/18/2020 125,000.00 11/29/2016 2.18% 126,620.00 125,237.92 100.46 1.71% 125,571.00 1,443.23 1.15% 333.08 A1 / A AA- 0.55 0.54 02665WAZ4 American Honda Finance Note 2.45% Due 9/24/2020 150,000.00 10/07/2016 1.72% 154,161.00 150,681.00 100.51 1.65% 150,765.00 1,296.46 1.38% 84.00 A2 / A NR 0.65 0.64 91159HHL7 US Bancorp Callable Note 1X 12/29/2020 2.35% Due 1/29/2021 125,000.00 05/02/2017 2.12% 126,012.50 125,251.99 100.59 1.69% 125,742.63 16.32 1.14% 490.64 A1 / A+ AA- 1.00 0.90 17275RBD3 Cisco Systems Note 2.2% Due 2/28/2021 150,000.00 09/20/2017 1.98% 151,108.50 150,347.12 100.57 1.66% 150,855.30 1,402.50 1.38% 508.18 A1 / AA- NR 1.08 1.05 369550BE7 General Dynamics Corp Note 3% Due 5/11/2021 125,000.00 05/15/2018 3.25% 124,128.75 124,627.98 101.77 1.59% 127,214.50 833.33 1.16% 2,586.52 A2 / A+ NR 1.28 1.25 808513AW5 Charles Schwab Corp Callable Note Cont 4/21/2021 3.25% Due 5/21/2021 150,000.00 05/30/2018 3.01% 151,011.00 150,426.44 102.04 1.56% 153,056.40 947.92 1.40% 2,629.96 A2 / A A 1.30 1.19 931142EJ8 Wal-Mart Stores Note 3.125% Due 6/23/2021 200,000.00 Various 2.96% 200,929.00 200,436.91 102.19 1.53% 204,371.80 659.72 1.86% 3,934.89 Aa2 / AA AA 1.39 1.36 68389XBK0 Oracle Corp Callable Note Cont 8/15/2021 1.9% Due 9/15/2021 200,000.00 10/12/2017 2.11% 198,458.00 199,361.63 100.42 1.62% 200,836.20 1,435.56 1.84% 1,474.57 A1 / A+ A 1.62 1.50 89236TDP7 Toyota Motor Credit Corp Note 2.6% Due 1/11/2022 130,000.00 01/28/2019 2.98% 128,629.80 129,096.71 101.87 1.62% 132,431.78 187.78 1.21% 3,335.07 Aa3 / AA- A+ 1.95 1.89 06051GEU9 Bank of America Corp Note 3.3% Due 1/11/2023 130,000.00 01/28/2019 3.29% 130,059.80 130,044.58 104.47 1.74% 135,806.45 238.33 1.24% 5,761.87 A2 / A- A+ 2.95 2.80 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 6 3.A.3.a Packet Pg. 19 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Holdings Report As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration CORPORATE 06406RAE7 Bank of NY Mellon Corp Callable Note Cont 12/29/2022 2.95% Due 1/29/2023 145,000.00 09/09/2019 1.97% 149,541.40 149,002.46 103.63 1.67% 150,263.94 23.76 1.37% 1,261.48 A1 / A AA- 3.00 2.79 084670BR8 Berkshire Hathaway Callable Note Cont 1/15/2023 2.75% Due 3/15/2023 150,000.00 08/26/2019 1.83% 154,525.50 153,950.66 103.41 1.56% 155,115.60 1,558.33 1.42% 1,164.94 Aa2 / AA A+ 3.12 2.81 037833AK6 Apple Inc Note 2.4% Due 5/3/2023 200,000.00 05/20/2019 2.63% 198,284.00 198,587.45 102.41 1.64% 204,828.20 1,173.33 1.87% 6,240.75 Aa1 / AA+ NR 3.25 3.11 24422EUR8 John Deere Capital Corp Note 3.45% Due 1/10/2024 150,000.00 03/14/2019 2.95% 153,322.50 152,718.07 106.41 1.76% 159,609.15 301.88 1.45% 6,891.08 A2 / A A 3.95 3.69 46625HJX9 JP Morgan Chase Note 3.625% Due 5/13/2024 145,000.00 12/19/2019 2.20% 153,560.80 153,352.39 107.13 1.89% 155,331.40 1,138.85 1.42% 1,979.01 A2 / A- AA- 4.28 3.95 Total Corporate 2,275,000.00 2.47% 2,300,352.55 2,293,123.31 1.65% 2,331,799.35 12,657.30 21.31% 38,676.04 A1 / A+ A+ 2.14 2.01 MONEY MARKET FUND FI 31846V203 First American Govt Obligation Fund Class Y 70,499.38 Various 1.17% 70,499.38 70,499.38 1.00 1.17% 70,499.38 0.00 0.64% 0.00 Aaa / AAA AAA 0.00 0.00 Total Money Market Fund FI 70,499.38 1.17% 70,499.38 70,499.38 1.17% 70,499.38 0.00 0.64% 0.00 Aaa / AAA AAA 0.00 0.00 US TREASURY 912828L32 US Treasury Note 1.375% Due 8/31/2020 200,000.00 11/03/2015 1.56% 198,289.73 199,794.22 99.88 1.58% 199,765.60 1,163.46 1.83% (28.62) Aaa / AA+ AAA 0.58 0.57 912828M98 US Treasury Note 1.625% Due 11/30/2020 205,000.00 Various 1.71% 204,350.30 204,862.78 100.05 1.56% 205,112.14 573.41 1.87% 249.36 Aaa / AA+ AAA 0.83 0.82 912828N89 US Treasury Note 1.375% Due 1/31/2021 160,000.00 04/04/2018 2.41% 155,500.00 158,408.43 99.86 1.51% 159,781.28 6.04 1.45% 1,372.85 Aaa / AA+ AAA 1.00 0.99 912828Q78 US Treasury Note 1.375% Due 4/30/2021 210,000.00 05/25/2017 1.66% 207,753.05 209,286.63 99.88 1.47% 209,753.88 737.74 1.91% 467.25 Aaa / AA+ AAA 1.25 1.23 912828WN6 US Treasury Note 2% Due 5/31/2021 200,000.00 04/29/2019 2.29% 198,820.31 199,249.15 100.73 1.45% 201,453.20 688.52 1.84% 2,204.05 Aaa / AA+ AAA 1.33 1.31 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 7 3.A.3.a Packet Pg. 20 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Holdings Report As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration US TREASURY 912828S76 US Treasury Note 1.125% Due 7/31/2021 260,000.00 11/29/2017 1.98% 252,169.53 256,806.99 99.58 1.41% 258,913.20 8.04 2.35% 2,106.21 Aaa / AA+ AAA 1.50 1.48 912828T34 US Treasury Note 1.125% Due 9/30/2021 125,000.00 05/30/2018 2.59% 119,194.34 122,106.70 99.57 1.38% 124,467.75 476.43 1.14% 2,361.05 Aaa / AA+ AAA 1.67 1.64 912828G53 US Treasury Note 1.875% Due 11/30/2021 220,000.00 04/26/2017 1.81% 220,653.86 220,260.30 100.94 1.35% 222,062.50 710.04 2.02% 1,802.20 Aaa / AA+ AAA 1.83 1.79 912828W89 US Treasury Note 1.875% Due 3/31/2022 200,000.00 04/26/2018 2.75% 193,531.25 196,440.83 101.14 1.34% 202,289.00 1,270.49 1.85% 5,848.17 Aaa / AA+ AAA 2.16 2.10 912828L24 US Treasury Note 1.875% Due 8/31/2022 150,000.00 07/22/2019 1.77% 150,462.89 150,384.18 101.41 1.32% 152,121.15 1,189.90 1.39% 1,736.97 Aaa / AA+ AAA 2.58 2.50 912828M80 US Treasury Note 2% Due 11/30/2022 200,000.00 04/11/2019 2.31% 197,851.56 198,325.03 101.90 1.31% 203,804.60 688.52 1.86% 5,479.57 Aaa / AA+ AAA 2.83 2.74 9128284D9 US Treasury Note 2.5% Due 3/31/2023 210,000.00 Various 2.95% 206,053.12 207,229.53 103.68 1.31% 217,719.18 1,778.69 1.99% 10,489.65 Aaa / AA+ AAA 3.16 3.02 912828Y61 US Treasury Note 2.75% Due 7/31/2023 175,000.00 12/27/2018 2.59% 176,223.63 175,931.59 104.89 1.32% 183,551.73 13.22 1.67% 7,620.14 Aaa / AA+ AAA 3.50 3.34 912828W71 US Treasury Note 2.125% Due 3/31/2024 210,000.00 12/05/2019 1.63% 214,331.25 214,174.70 103.24 1.32% 216,800.43 1,511.89 1.98% 2,625.73 Aaa / AA+ AAA 4.17 3.96 912828Y87 US Treasury Note 1.75% Due 7/31/2024 220,000.00 01/17/2020 1.63% 221,160.16 221,152.44 101.84 1.33% 224,056.36 10.58 2.04% 2,903.92 Aaa / AA+ AAA 4.50 4.32 9128282U3 US Treasury Note 1.875% Due 8/31/2024 230,000.00 12/12/2019 1.76% 231,230.86 231,195.14 102.41 1.33% 235,552.43 1,824.52 2.16% 4,357.29 Aaa / AA+ AAA 4.59 4.35 912828YV6 US Treasury Note 1.5% Due 11/30/2024 230,000.00 12/12/2019 1.74% 227,421.48 227,492.55 100.83 1.32% 231,904.63 593.85 2.11% 4,412.08 Aaa / AA+ AAA 4.84 4.64 Total US Treasury 3,405,000.00 2.04% 3,374,997.32 3,393,101.19 1.39% 3,449,109.06 13,245.34 31.47% 56,007.87 Aaa / AA+ AAA 2.56 2.47 TOTAL PORTFOLIO 10,748,811.04 2.12% 10,768,578.73 10,779,873.40 1.48% 10,955,738.68 47,406.24 100.00% 175,865.28 Aa1 / AA AAA 2.39 2.19 TOTAL MARKET VALUE PLUS ACCRUED 11,003,144.92 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 8 3.A.3.a Packet Pg. 21 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Transaction Ledger As of January 31, 2020 City of San Jacinto Account #10167 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 01/02/2020 31846V203 177.68 First American Govt Obligation Fund Class Y 1.000 1.20%177.68 0.00 177.68 0.00 Purchase 01/07/2020 31846V203 200,000.00 First American Govt Obligation Fund Class Y 1.000 1.20%200,000.00 0.00 200,000.00 0.00 Purchase 01/10/2020 31846V203 2,587.50 First American Govt Obligation Fund Class Y 1.000 1.20%2,587.50 0.00 2,587.50 0.00 Purchase 01/11/2020 31846V203 3,835.00 First American Govt Obligation Fund Class Y 1.000 1.20%3,835.00 0.00 3,835.00 0.00 Purchase 01/15/2020 31846V203 118.67 First American Govt Obligation Fund Class Y 1.000 1.20%118.67 0.00 118.67 0.00 Purchase 01/15/2020 31846V203 73.67 First American Govt Obligation Fund Class Y 1.000 1.20%73.67 0.00 73.67 0.00 Purchase 01/15/2020 31846V203 136.71 First American Govt Obligation Fund Class Y 1.000 1.20%136.71 0.00 136.71 0.00 Purchase 01/15/2020 31846V203 149.50 First American Govt Obligation Fund Class Y 1.000 1.20%149.50 0.00 149.50 0.00 Purchase 01/15/2020 31846V203 6,656.13 First American Govt Obligation Fund Class Y 1.000 1.20%6,656.13 0.00 6,656.13 0.00 Purchase 01/15/2020 31846V203 4,029.37 First American Govt Obligation Fund Class Y 1.000 1.20%4,029.37 0.00 4,029.37 0.00 Purchase 01/15/2020 31846V203 1,797.54 First American Govt Obligation Fund Class Y 1.000 1.20%1,797.54 0.00 1,797.54 0.00 Purchase 01/15/2020 31846V203 6,763.27 First American Govt Obligation Fund Class Y 1.000 1.20%6,763.27 0.00 6,763.27 0.00 Purchase 01/17/2020 3135G0X24 225,000.00 FNMA Note 1.625% Due 1/7/2025 99.688 1.69%224,298.00 71.09 224,369.09 0.00 Purchase 01/19/2020 31846V203 3,443.75 First American Govt Obligation Fund Class Y 1.000 1.20%3,443.75 0.00 3,443.75 0.00 Purchase 01/21/2020 31846V203 245,000.00 First American Govt Obligation Fund Class Y 1.000 1.20%245,000.00 0.00 245,000.00 0.00 Purchase 01/21/2020 31846V203 1,990.63 First American Govt Obligation Fund Class Y 1.000 1.20%1,990.63 0.00 1,990.63 0.00 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 9 3.A.3.a Packet Pg. 22 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Transaction Ledger As of January 31, 2020 City of San Jacinto Account #10167 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 01/21/2020 31846V203 172.08 First American Govt Obligation Fund Class Y 1.000 1.20%172.08 0.00 172.08 0.00 Purchase 01/21/2020 912828Y87 220,000.00 US Treasury Note 1.75% Due 7/31/2024 100.527 1.63%221,160.16 1,820.38 222,980.54 0.00 Purchase 01/29/2020 31846V203 4,751.25 First American Govt Obligation Fund Class Y 1.000 1.20%4,751.25 0.00 4,751.25 0.00 Purchase 01/31/2020 31846V203 6,893.75 First American Govt Obligation Fund Class Y 1.000 1.17%6,893.75 0.00 6,893.75 0.00 Subtotal 933,576.50 934,034.66 1,891.47 935,926.13 0.00 Short Sale 01/21/2020 31846V203 -222,980.54 First American Govt Obligation Fund Class Y 1.000 -222,980.54 0.00 -222,980.54 0.00 Subtotal -222,980.54 -222,980.54 0.00 -222,980.54 0.00 TOTAL ACQUISITIONS 710,595.96 711,054.12 1,891.47 712,945.59 0.00 DISPOSITIONS Closing Purchase 01/21/2020 31846V203 -222,980.54 First American Govt Obligation Fund Class Y 1.000 -222,980.54 0.00 -222,980.54 0.00 Subtotal -222,980.54 -222,980.54 0.00 -222,980.54 0.00 Sale 01/17/2020 31846V203 224,369.09 First American Govt Obligation Fund Class Y 1.000 1.20%224,369.09 0.00 224,369.09 0.00 Sale 01/21/2020 31846V203 222,980.54 First American Govt Obligation Fund Class Y 1.000 1.20%222,980.54 0.00 222,980.54 0.00 Subtotal 447,349.63 447,349.63 0.00 447,349.63 0.00 Paydown 01/15/2020 43815NAC8 0.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 100.000 0.00 118.67 118.67 0.00 Paydown 01/15/2020 477870AC3 0.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 100.000 0.00 73.67 73.67 0.00 Paydown 01/15/2020 47788BAD6 6,583.32 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 100.000 6,583.32 72.81 6,656.13 0.00 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 10 3.A.3.a Packet Pg. 23 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Transaction Ledger As of January 31, 2020 City of San Jacinto Account #10167 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss DISPOSITIONS Paydown 01/15/2020 47789JAB2 3,938.84 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 100.000 3,938.84 90.53 4,029.37 0.00 Paydown 01/15/2020 65478VAD9 1,795.56 Nissan Auto Receivables Trust 2016-B A3 1.32% Due 1/15/2021 100.000 1,795.56 1.98 1,797.54 0.00 Paydown 01/15/2020 65478WAE5 0.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 100.000 0.00 149.50 149.50 0.00 Paydown 01/15/2020 65479JAD5 0.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 100.000 0.00 136.71 136.71 0.00 Paydown 01/15/2020 89238KAD4 6,635.65 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 100.000 6,635.65 127.62 6,763.27 0.00 Paydown 01/21/2020 43815HAC1 0.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 100.000 0.00 172.08 172.08 0.00 Subtotal 18,953.37 18,953.37 943.57 19,896.94 0.00 Maturity 01/07/2020 89233GA71 200,000.00 Toyota Motor Credit Discount CP 2.14% Due 1/7/2020 98.995 200,000.00 0.00 200,000.00 0.00 Maturity 01/21/2020 3135G0A78 245,000.00 FNMA Note 1.625% Due 1/21/2020 100.000 245,000.00 0.00 245,000.00 0.00 Subtotal 445,000.00 445,000.00 0.00 445,000.00 0.00 Security Withdrawal 01/06/2020 31846V203 909.40 First American Govt Obligation Fund Class Y 1.000 909.40 0.00 909.40 0.00 Security Withdrawal 01/27/2020 31846V203 104.17 First American Govt Obligation Fund Class Y 1.000 104.17 0.00 104.17 0.00 Subtotal 1,013.57 1,013.57 0.00 1,013.57 0.00 TOTAL DISPOSITIONS 689,336.03 689,336.03 943.57 690,279.60 0.00 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 11 3.A.3.a Packet Pg. 24 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Transaction Ledger As of January 31, 2020 City of San Jacinto Account #10167 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss OTHER TRANSACTIONS Interest 01/10/2020 24422EUR8 150,000.00 John Deere Capital Corp Note 3.45% Due 1/10/2024 0.000 2,587.50 0.00 2,587.50 0.00 Interest 01/11/2020 06051GEU9 130,000.00 Bank of America Corp Note 3.3% Due 1/11/2023 0.000 2,145.00 0.00 2,145.00 0.00 Interest 01/11/2020 89236TDP7 130,000.00 Toyota Motor Credit Corp Note 2.6% Due 1/11/2022 0.000 1,690.00 0.00 1,690.00 0.00 Interest 01/19/2020 3135G0T94 290,000.00 FNMA Note 2.375% Due 1/19/2023 0.000 3,443.75 0.00 3,443.75 0.00 Interest 01/21/2020 3135G0A78 245,000.00 FNMA Note 1.625% Due 1/21/2020 0.000 1,990.63 0.00 1,990.63 0.00 Interest 01/29/2020 06406RAE7 145,000.00 Bank of NY Mellon Corp Callable Note Cont 12/29/2022 2.95% Due 1/29/2023 0.000 2,138.75 0.00 2,138.75 0.00 Interest 01/29/2020 3130A5Z77 125,000.00 FHLB Note 1.83% Due 7/29/2020 0.000 1,143.75 0.00 1,143.75 0.00 Interest 01/29/2020 91159HHL7 125,000.00 US Bancorp Callable Note 1X 12/29/2020 2.35% Due 1/29/2021 0.000 1,468.75 0.00 1,468.75 0.00 Interest 01/31/2020 912828N89 160,000.00 US Treasury Note 1.375% Due 1/31/2021 0.000 1,100.00 0.00 1,100.00 0.00 Interest 01/31/2020 912828S76 260,000.00 US Treasury Note 1.125% Due 7/31/2021 0.000 1,462.50 0.00 1,462.50 0.00 Interest 01/31/2020 912828Y61 175,000.00 US Treasury Note 2.75% Due 7/31/2023 0.000 2,406.25 0.00 2,406.25 0.00 Interest 01/31/2020 912828Y87 220,000.00 US Treasury Note 1.75% Due 7/31/2024 0.000 1,925.00 0.00 1,925.00 0.00 Subtotal 2,155,000.00 23,501.88 0.00 23,501.88 0.00 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 12 3.A.3.a Packet Pg. 25 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Transaction Ledger As of January 31, 2020 City of San Jacinto Account #10167 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss OTHER TRANSACTIONS Dividend 01/02/2020 31846V203 30,286.08 First American Govt Obligation Fund Class Y 0.000 177.68 0.00 177.68 0.00 Subtotal 30,286.08 177.68 0.00 177.68 0.00 TOTAL OTHER TRANSACTIONS 2,185,286.08 23,679.56 0.00 23,679.56 0.00 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 13 3.A.3.a Packet Pg. 26 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Income Earned As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income FIXED INCOME 02665WAZ4 American Honda Finance Note 2.45% Due 09/24/2020 10/07/2016 10/13/2016 150,000.00 150,770.45 0.00 0.00 150,681.00 990.21 0.00 1,296.46 306.25 0.00 89.45 (89.45) 216.80 216.80 037833AK6 Apple Inc Note 2.4% Due 05/03/2023 05/20/2019 05/22/2019 200,000.00 198,550.56 0.00 0.00 198,587.45 773.33 0.00 1,173.33 400.00 36.89 0.00 36.89 436.89 436.89 06051GEU9 Bank of America Corp Note 3.3% Due 01/11/2023 01/28/2019 01/30/2019 130,000.00 130,045.87 0.00 0.00 130,044.58 2,025.83 2,145.00 238.33 357.50 0.00 1.29 (1.29) 356.21 356.21 06406RAE7 Bank of NY Mellon Corp Callable Note Cont 12/29/2022 2.95% Due 01/29/2023 09/09/2019 09/11/2019 145,000.00 149,119.29 0.00 0.00 149,002.46 1,806.06 2,138.75 23.76 356.45 0.00 116.83 (116.83) 239.62 239.62 084670BR8 Berkshire Hathaway Callable Note Cont 1/15/2023 2.75% Due 03/15/2023 08/26/2019 08/28/2019 150,000.00 154,064.16 0.00 0.00 153,950.66 1,214.58 0.00 1,558.33 343.75 0.00 113.50 (113.50) 230.25 230.25 17275RBD3 Cisco Systems Note 2.2% Due 02/28/2021 09/20/2017 09/22/2017 150,000.00 150,374.51 0.00 0.00 150,347.12 1,127.50 0.00 1,402.50 275.00 0.00 27.39 (27.39) 247.61 247.61 24422EUR8 John Deere Capital Corp Note 3.45% Due 01/10/2024 03/14/2019 03/18/2019 150,000.00 152,776.62 0.00 0.00 152,718.07 2,458.13 2,587.50 301.88 431.25 0.00 58.55 (58.55) 372.70 372.70 3130A0F70 FHLB Note 3.375% Due 12/08/2023 01/30/2019 01/31/2019 220,000.00 225,346.91 0.00 0.00 225,231.56 474.38 0.00 1,093.13 618.75 0.00 115.35 (115.35) 503.40 503.40 3130A1XJ2 FHLB Note 2.875% Due 06/14/2024 Various Various 210,000.00 218,076.68 0.00 0.00 217,922.69 285.10 0.00 788.22 503.12 0.00 153.99 (153.99) 349.13 349.13 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 14 3.A.3.a Packet Pg. 27 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Income Earned As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 3130A2UW4 FHLB Note 2.875% Due 09/13/2024 10/29/2019 10/30/2019 150,000.00 157,463.16 0.00 0.00 157,328.42 1,293.75 0.00 1,653.13 359.38 0.00 134.74 (134.74) 224.64 224.64 3130A3GE8 FHLB Note 2.75% Due 12/13/2024 12/16/2019 12/17/2019 250,000.00 261,576.46 0.00 0.00 261,377.97 343.75 0.00 916.67 572.92 0.00 198.49 (198.49) 374.43 374.43 3130A3KM5 FHLB Note 2.5% Due 12/09/2022 09/10/2019 09/13/2019 100,000.00 102,551.44 0.00 0.00 102,477.72 152.78 0.00 361.11 208.33 0.00 73.72 (73.72) 134.61 134.61 3130A3UQ5 FHLB Note 1.875% Due 12/11/2020 01/28/2016 01/29/2016 225,000.00 225,706.83 0.00 0.00 225,643.32 234.38 0.00 585.94 351.56 0.00 63.51 (63.51) 288.05 288.05 3130A5Z77 FHLB Note 1.83% Due 07/29/2020 10/27/2015 10/28/2015 125,000.00 125,257.96 0.00 0.00 125,219.88 965.83 1,143.75 12.71 190.63 0.00 38.08 (38.08) 152.55 152.55 3130A7CV5 FHLB Note 1.375% Due 02/18/2021 03/10/2016 03/11/2016 200,000.00 199,498.15 0.00 0.00 199,535.73 1,015.97 0.00 1,245.14 229.17 37.58 0.00 37.58 266.75 266.75 313378WG2 FHLB Note 2.5% Due 03/11/2022 03/13/2018 03/14/2018 300,000.00 299,079.84 0.00 0.00 299,115.49 2,291.67 0.00 2,916.67 625.00 35.65 0.00 35.65 660.65 660.65 313379Q69 FHLB Note 2.125% Due 06/10/2022 06/20/2017 06/21/2017 200,000.00 201,163.45 0.00 0.00 201,122.98 247.92 0.00 602.08 354.16 0.00 40.47 (40.47) 313.69 313.69 313383HU8 FHLB Note 1.75% Due 06/12/2020 10/14/2015 10/15/2015 130,000.00 130,208.91 0.00 0.00 130,169.18 120.07 0.00 309.65 189.58 0.00 39.73 (39.73) 149.85 149.85 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 15 3.A.3.a Packet Pg. 28 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Income Earned As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 313383YJ4 FHLB Note 3.375% Due 09/08/2023 12/27/2018 12/28/2018 200,000.00 204,418.65 0.00 0.00 204,316.88 2,118.75 0.00 2,681.25 562.50 0.00 101.77 (101.77) 460.73 460.73 3135G0A78 FNMA Note Due 01/21/2020 12/10/2015 12/11/2015 0.00 245,001.99 0.00 245,000.00 0.00 1,769.44 1,990.63 0.00 221.19 0.00 1.99 (1.99) 219.20 219.20 3135G0N82 FNMA Note 1.25% Due 08/17/2021 01/26/2017 01/31/2017 315,000.00 311,269.08 0.00 0.00 311,463.79 1,465.63 0.00 1,793.75 328.12 194.71 0.00 194.71 522.83 522.83 3135G0T29 FNMA Note 1.5% Due 02/28/2020 08/28/2017 08/29/2017 205,000.00 205,006.51 0.00 0.00 205,003.03 1,050.63 0.00 1,306.88 256.25 0.00 3.48 (3.48) 252.77 252.77 3135G0T94 FNMA Note 2.375% Due 01/19/2023 10/17/2018 10/19/2018 290,000.00 284,256.48 0.00 0.00 284,416.31 3,099.38 3,443.75 229.58 573.95 159.83 0.00 159.83 733.78 733.78 3135G0W33 FNMA Note 1.375% Due 09/06/2022 09/05/2019 09/06/2019 200,000.00 199,378.30 0.00 0.00 199,397.99 878.47 0.00 1,107.64 229.17 19.69 0.00 19.69 248.86 248.86 3135G0X24 FNMA Note 1.625% Due 01/07/2025 01/16/2020 01/17/2020 225,000.00 0.00 224,298.00 0.00 224,303.80 0.00 (71.09) 213.28 142.19 5.80 0.00 5.80 147.99 147.99 3137EADR7 FHLMC Note 1.375% Due 05/01/2020 08/24/2016 08/25/2016 225,000.00 225,237.23 0.00 0.00 225,176.45 515.63 0.00 773.44 257.81 0.00 60.78 (60.78) 197.03 197.03 3137EAEF2 FHLMC Note 1.375% Due 04/20/2020 07/27/2017 07/28/2017 250,000.00 249,878.64 0.00 0.00 249,912.84 677.95 0.00 964.41 286.46 34.20 0.00 34.20 320.66 320.66 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 16 3.A.3.a Packet Pg. 29 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Income Earned As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 3137EAEK1 FHLMC Note 1.875% Due 11/17/2020 01/18/2018 01/19/2018 225,000.00 224,391.72 0.00 0.00 224,450.46 515.63 0.00 867.19 351.56 58.74 0.00 58.74 410.30 410.30 3137EAEN5 FHLMC Note 2.75% Due 06/19/2023 11/13/2018 11/14/2018 200,000.00 197,871.06 0.00 0.00 197,923.23 183.33 0.00 641.67 458.34 52.17 0.00 52.17 510.51 510.51 369550BE7 General Dynamics Corp Note 3% Due 05/11/2021 05/15/2018 05/18/2018 125,000.00 124,603.18 0.00 0.00 124,627.98 520.83 0.00 833.33 312.50 24.80 0.00 24.80 337.30 337.30 43815HAC1 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 08/22/2022 08/21/2018 08/28/2018 70,000.00 69,993.64 0.00 0.00 69,993.84 57.36 172.08 57.36 172.08 0.20 0.00 0.20 172.28 172.28 43815NAC8 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 08/15/2023 08/20/2019 08/27/2019 80,000.00 79,999.42 0.00 0.00 79,999.43 63.29 118.67 63.29 118.67 0.01 0.00 0.01 118.68 118.68 46625HJX9 JP Morgan Chase Note 3.625% Due 05/13/2024 12/19/2019 12/24/2019 145,000.00 153,518.05 0.00 0.00 153,352.39 700.83 0.00 1,138.85 438.02 0.00 165.66 (165.66) 272.36 272.36 477870AC3 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 07/16/2019 07/24/2019 40,000.00 39,992.36 0.00 0.00 39,992.53 39.29 73.67 39.29 73.67 0.17 0.00 0.17 73.84 73.84 47788BAD6 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 07/26/2018 07/30/2018 41,422.03 47,607.62 0.00 6,583.32 41,095.14 38.83 72.81 33.51 67.49 70.84 0.00 70.84 138.33 138.33 47789JAB2 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 03/05/2019 03/13/2019 34,178.91 38,116.52 0.00 3,938.84 34,177.86 48.28 90.53 43.29 85.54 0.18 0.00 0.18 85.72 85.72 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 17 3.A.3.a Packet Pg. 30 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Income Earned As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 65478VAD9 Nissan Auto Receivables Trust 2016-B A3 Due 01/15/2021 02/12/2018 02/14/2018 0.00 1,790.43 0.00 1,795.56 0.00 0.26 1.98 0.00 1.72 5.13 0.00 5.13 6.85 6.85 65478WAE5 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 01/17/2023 04/16/2019 04/18/2019 130,000.00 128,624.09 0.00 0.00 128,689.41 79.73 149.50 79.73 149.50 65.32 0.00 65.32 214.82 214.82 65479JAD5 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 07/15/2024 10/16/2019 10/23/2019 85,000.00 84,995.69 0.00 0.00 84,995.77 72.91 136.71 72.91 136.71 0.08 0.00 0.08 136.79 136.79 68389XBK0 Oracle Corp Callable Note Cont 8/15/2021 1.9% Due 09/15/2021 10/12/2017 10/16/2017 200,000.00 199,328.21 0.00 0.00 199,361.63 1,118.89 0.00 1,435.56 316.67 33.42 0.00 33.42 350.09 350.09 808513AW5 Charles Schwab Corp Callable Note Cont 4/21/2021 3.25% Due 05/21/2021 05/30/2018 06/01/2018 150,000.00 150,456.15 0.00 0.00 150,426.44 541.67 0.00 947.92 406.25 0.00 29.71 (29.71) 376.54 376.54 857477AS2 State Street Bank Note 2.55% Due 08/18/2020 11/29/2016 12/02/2016 125,000.00 125,274.98 0.00 0.00 125,237.92 1,177.60 0.00 1,443.23 265.63 0.00 37.06 (37.06) 228.57 228.57 89236TDP7 Toyota Motor Credit Corp Note 2.6% Due 01/11/2022 01/28/2019 01/30/2019 130,000.00 129,057.27 0.00 0.00 129,096.71 1,596.11 1,690.00 187.78 281.67 39.44 0.00 39.44 321.11 321.11 89238KAD4 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 01/18/2022 10/17/2019 10/21/2019 72,710.72 79,329.40 0.00 6,635.65 72,695.82 55.30 127.62 50.68 123.00 2.07 0.00 2.07 125.07 125.07 91159HHL7 US Bancorp Callable Note 1X 12/29/2020 2.35% Due 01/29/2021 05/02/2017 05/05/2017 125,000.00 125,275.52 0.00 0.00 125,251.99 1,240.28 1,468.75 16.32 244.79 0.00 23.53 (23.53) 221.26 221.26 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 18 3.A.3.a Packet Pg. 31 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Income Earned As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 9128282U3 US Treasury Note 1.875% Due 08/31/2024 12/12/2019 12/13/2019 230,000.00 231,217.29 0.00 0.00 231,195.14 1,457.25 0.00 1,824.52 367.27 0.00 22.15 (22.15) 345.12 345.12 9128284D9 US Treasury Note 2.5% Due 03/31/2023 Various Various 210,000.00 207,155.10 0.00 0.00 207,229.53 1,334.02 0.00 1,778.69 444.67 74.43 0.00 74.43 519.10 519.10 912828G53 US Treasury Note 1.875% Due 11/30/2021 04/26/2017 04/27/2017 220,000.00 220,272.38 0.00 0.00 220,260.30 360.66 0.00 710.04 349.38 0.00 12.08 (12.08) 337.30 337.30 912828L24 US Treasury Note 1.875% Due 08/31/2022 07/22/2019 07/23/2019 150,000.00 150,396.82 0.00 0.00 150,384.18 950.38 0.00 1,189.90 239.52 0.00 12.64 (12.64) 226.88 226.88 912828L32 US Treasury Note 1.375% Due 08/31/2020 11/03/2015 11/04/2015 200,000.00 199,764.13 0.00 0.00 199,794.22 929.26 0.00 1,163.46 234.20 30.09 0.00 30.09 264.29 264.29 912828M80 US Treasury Note 2% Due 11/30/2022 04/11/2019 04/15/2019 200,000.00 198,274.76 0.00 0.00 198,325.03 349.73 0.00 688.52 338.79 50.27 0.00 50.27 389.06 389.06 912828M98 US Treasury Note 1.625% Due 11/30/2020 Various Various 205,000.00 204,848.74 0.00 0.00 204,862.78 291.26 0.00 573.41 282.15 14.04 0.00 14.04 296.19 296.19 912828N89 US Treasury Note 1.375% Due 01/31/2021 04/04/2018 04/05/2018 160,000.00 158,273.26 0.00 0.00 158,408.43 920.65 1,100.00 6.04 185.39 135.17 0.00 135.17 320.56 320.56 912828Q78 US Treasury Note 1.375% Due 04/30/2021 05/25/2017 05/31/2017 210,000.00 209,237.92 0.00 0.00 209,286.63 491.83 0.00 737.74 245.91 48.71 0.00 48.71 294.62 294.62 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 19 3.A.3.a Packet Pg. 32 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Income Earned As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 912828S76 US Treasury Note 1.125% Due 07/31/2021 11/29/2017 11/30/2017 260,000.00 256,625.70 0.00 0.00 256,806.99 1,224.05 1,462.50 8.04 246.49 181.29 0.00 181.29 427.78 427.78 912828T34 US Treasury Note 1.125% Due 09/30/2021 05/30/2018 05/31/2018 125,000.00 121,958.94 0.00 0.00 122,106.70 357.33 0.00 476.43 119.10 147.76 0.00 147.76 266.86 266.86 912828W71 US Treasury Note 2.125% Due 03/31/2024 12/05/2019 12/06/2019 210,000.00 214,259.84 0.00 0.00 214,174.70 1,133.91 0.00 1,511.89 377.98 0.00 85.14 (85.14) 292.84 292.84 912828W89 US Treasury Note 1.875% Due 03/31/2022 04/26/2018 04/27/2018 200,000.00 196,300.99 0.00 0.00 196,440.83 952.87 0.00 1,270.49 317.62 139.84 0.00 139.84 457.46 457.46 912828WN6 US Treasury Note 2% Due 05/31/2021 04/29/2019 04/30/2019 200,000.00 199,201.15 0.00 0.00 199,249.15 349.73 0.00 688.52 338.79 48.00 0.00 48.00 386.79 386.79 912828Y61 US Treasury Note 2.75% Due 07/31/2023 12/27/2018 12/28/2018 175,000.00 175,954.23 0.00 0.00 175,931.59 2,013.93 2,406.25 13.22 405.54 0.00 22.64 (22.64) 382.90 382.90 912828Y87 US Treasury Note 1.75% Due 07/31/2024 01/17/2020 01/21/2020 220,000.00 0.00 221,160.16 0.00 221,152.44 0.00 104.62 10.58 115.20 0.00 7.72 (7.72) 107.48 107.48 912828YV6 US Treasury Note 1.5% Due 11/30/2024 12/12/2019 12/13/2019 230,000.00 227,448.49 0.00 0.00 227,492.55 301.64 0.00 593.85 292.21 44.06 0.00 44.06 336.27 336.27 931142EJ8 Wal-Mart Stores Note 3.125% Due 06/23/2021 Various Various 200,000.00 200,463.57 0.00 0.00 200,436.91 138.89 0.00 659.72 520.83 0.00 26.66 (26.66) 494.17 494.17 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 20 3.A.3.a Packet Pg. 33 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Income Earned As of January 31, 2020 City of San Jacinto Account #10167 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income Total Fixed Income 10,678,311.66 10,527,956.75 445,458.16 263,953.37 10,709,374.02 51,004.93 22,553.98 47,406.24 18,955.29 1,790.58 1,878.10 (87.52) 18,867.77 18,867.77 CASH & EQUIVALENT 31846V203 First American Govt Obligation Fund Class Y Various Various 70,499.38 30,286.08 265,595.96 225,382.66 70,499.38 0.00 177.68 0.00 177.68 0.00 0.00 0.00 177.68 177.68 89233GA71 Toyota Motor Credit Discount CP Due 01/07/2020 07/22/2019 07/22/2019 0.00 199,928.67 0.00 200,000.00 0.00 0.00 0.00 0.00 0.00 71.33 0.00 71.33 71.33 71.33 Total Cash & Equivalent 70,499.38 230,214.75 265,595.96 425,382.66 70,499.38 0.00 177.68 0.00 177.68 71.33 0.00 71.33 249.01 249.01 TOTAL PORTFOLIO 10,748,811.04 10,758,171.50 711,054.12 689,336.03 10,779,873.40 51,004.93 22,731.66 47,406.24 19,132.97 1,861.91 1,878.10 (16.19) 19,116.78 19,116.78 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 21 3.A.3.a Packet Pg. 34 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 02/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 810.96 73.67 884.63 02/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,447.72 81.17 1,528.89 02/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 3,410.73 62.82 3,473.55 02/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,109.05 149.50 6,258.55 02/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,717.21 118.67 3,835.88 02/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,482.15 136.71 1,618.86 02/17/2020 Interest 3135G0N82 315,000.00 FNMA Note 1.25% Due 8/17/2021 0.00 1,968.75 1,968.75 02/18/2020 Interest 3130A7CV5 200,000.00 FHLB Note 1.375% Due 2/18/2021 0.00 1,375.00 1,375.00 02/18/2020 Interest 857477AS2 125,000.00 State Street Bank Note 2.55% Due 8/18/2020 0.00 1,593.75 1,593.75 02/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 5,675.52 116.94 5,792.46 02/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 6,123.12 172.08 6,295.20 02/28/2020 Interest 17275RBD3 150,000.00 Cisco Systems Note 2.2% Due 2/28/2021 0.00 1,650.00 1,650.00 02/28/2020 Maturity 3135G0T29 205,000.00 FNMA Note 1.5% Due 2/28/2020 205,000.00 1,537.50 206,537.50 02/29/2020 Interest 9128282U3 230,000.00 US Treasury Note 1.875% Due 8/31/2024 0.00 2,156.25 2,156.25 02/29/2020 Interest 912828L32 200,000.00 US Treasury Note 1.375% Due 8/31/2020 0.00 1,375.00 1,375.00 02/29/2020 Interest 912828L24 150,000.00 US Treasury Note 1.875% Due 8/31/2022 0.00 1,406.25 1,406.25 FEB 2020 233,776.46 13,974.06 247,750.52 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 22 3.A.3.a Packet Pg. 35 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 03/06/2020 Interest 3135G0W33 200,000.00 FNMA Note 1.375% Due 9/6/2022 0.00 1,375.00 1,375.00 03/08/2020 Interest 313383YJ4 200,000.00 FHLB Note 3.375% Due 9/8/2023 0.00 3,375.00 3,375.00 03/11/2020 Interest 313378WG2 300,000.00 FHLB Note 2.5% Due 3/11/2022 0.00 3,750.00 3,750.00 03/13/2020 Interest 3130A2UW4 150,000.00 FHLB Note 2.875% Due 9/13/2024 0.00 2,156.25 2,156.25 03/15/2020 Interest 084670BR8 150,000.00 Berkshire Hathaway Callable Note Cont 1/15/2023 2.75% Due 3/15/2023 0.00 2,062.50 2,062.50 03/15/2020 Interest 68389XBK0 200,000.00 Oracle Corp Callable Note Cont 8/15/2021 1.9% Due 9/15/2021 0.00 1,900.00 1,900.00 03/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 812.66 72.17 884.83 03/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,117.13 142.47 6,259.60 03/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,640.58 113.15 3,753.73 03/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 3,268.77 57.65 3,326.42 03/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,451.14 77.74 1,528.88 03/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,485.49 134.32 1,619.81 03/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 5,449.52 107.81 5,557.33 03/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 5,878.51 157.03 6,035.54 03/24/2020 Interest 02665WAZ4 150,000.00 American Honda Finance Note 2.45% Due 9/24/2020 0.00 1,837.50 1,837.50 03/31/2020 Interest 9128284D9 210,000.00 US Treasury Note 2.5% Due 3/31/2023 0.00 2,625.00 2,625.00 03/31/2020 Interest 912828W71 210,000.00 US Treasury Note 2.125% Due 3/31/2024 0.00 2,231.25 2,231.25 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 23 3.A.3.a Packet Pg. 36 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 03/31/2020 Interest 912828T34 125,000.00 US Treasury Note 1.125% Due 9/30/2021 0.00 703.13 703.13 03/31/2020 Interest 912828W89 200,000.00 US Treasury Note 1.875% Due 3/31/2022 0.00 1,875.00 1,875.00 MAR 2020 28,103.80 24,752.97 52,856.77 04/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 3,126.53 52.69 3,179.22 04/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,125.21 135.44 6,260.65 04/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 814.34 70.68 885.02 04/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,454.58 74.29 1,528.87 04/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,563.76 107.75 3,671.51 04/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,488.83 131.94 1,620.77 04/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 5,222.96 99.05 5,322.01 04/20/2020 Maturity 3137EAEF2 250,000.00 FHLMC Note 1.375% Due 4/20/2020 250,000.00 1,718.75 251,718.75 04/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 5,632.99 142.58 5,775.57 04/30/2020 Interest 912828Q78 210,000.00 US Treasury Note 1.375% Due 4/30/2021 0.00 1,443.75 1,443.75 APR 2020 277,429.20 3,976.92 281,406.12 05/01/2020 Maturity 3137EADR7 225,000.00 FHLMC Note 1.375% Due 5/1/2020 225,000.00 1,546.88 226,546.88 05/03/2020 Interest 037833AK6 200,000.00 Apple Inc Note 2.4% Due 5/3/2023 0.00 2,400.00 2,400.00 05/11/2020 Interest 369550BE7 125,000.00 General Dynamics Corp Note 3% Due 5/11/2021 0.00 1,875.00 1,875.00 05/13/2020 Interest 46625HJX9 145,000.00 JP Morgan Chase Note 3.625% Due 5/13/2024 0.00 2,628.13 2,628.13 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 24 3.A.3.a Packet Pg. 37 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 05/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,458.02 70.84 1,528.86 05/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 2,983.98 47.95 3,031.93 05/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,492.18 129.54 1,621.72 05/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 816.04 69.18 885.22 05/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,486.75 102.47 3,589.22 05/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,133.31 128.40 6,261.71 05/17/2020 Interest 3137EAEK1 225,000.00 FHLMC Note 1.875% Due 11/17/2020 0.00 2,109.38 2,109.38 05/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 4,995.85 90.65 5,086.50 05/21/2020 Interest 808513AW5 150,000.00 Charles Schwab Corp Callable Note Cont 4/21/2021 3.25% Due 5/21/2021 0.00 2,437.50 2,437.50 05/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 5,386.57 128.73 5,515.30 05/31/2020 Interest 912828G53 220,000.00 US Treasury Note 1.875% Due 11/30/2021 0.00 2,062.50 2,062.50 05/31/2020 Interest 912828M98 205,000.00 US Treasury Note 1.625% Due 11/30/2020 0.00 1,665.63 1,665.63 05/31/2020 Interest 912828YV6 230,000.00 US Treasury Note 1.5% Due 11/30/2024 0.00 1,725.00 1,725.00 05/31/2020 Interest 912828M80 200,000.00 US Treasury Note 2% Due 11/30/2022 0.00 2,000.00 2,000.00 05/31/2020 Interest 912828WN6 200,000.00 US Treasury Note 2% Due 5/31/2021 0.00 2,000.00 2,000.00 MAY 2020 251,752.70 23,217.78 274,970.48 06/08/2020 Interest 3130A0F70 220,000.00 FHLB Note 3.375% Due 12/8/2023 0.00 3,712.50 3,712.50 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 25 3.A.3.a Packet Pg. 38 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 06/09/2020 Interest 3130A3KM5 100,000.00 FHLB Note 2.5% Due 12/9/2022 0.00 1,250.00 1,250.00 06/10/2020 Interest 313379Q69 200,000.00 FHLB Note 2.125% Due 6/10/2022 0.00 2,125.00 2,125.00 06/11/2020 Interest 3130A3UQ5 225,000.00 FHLB Note 1.875% Due 12/11/2020 0.00 2,109.38 2,109.38 06/12/2020 Maturity 313383HU8 130,000.00 FHLB Note 1.75% Due 6/12/2020 130,000.00 1,137.50 131,137.50 06/13/2020 Interest 3130A3GE8 250,000.00 FHLB Note 2.75% Due 12/13/2024 0.00 3,437.50 3,437.50 06/14/2020 Interest 3130A1XJ2 210,000.00 FHLB Note 2.875% Due 6/14/2024 0.00 3,018.76 3,018.76 06/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 2,841.14 43.43 2,884.57 06/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,141.42 121.34 6,262.76 06/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 817.75 67.67 885.42 06/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,461.48 67.37 1,528.85 06/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,409.56 97.29 3,506.85 06/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,495.54 127.14 1,622.68 06/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 4,768.19 82.62 4,850.81 06/19/2020 Interest 3137EAEN5 200,000.00 FHLMC Note 2.75% Due 6/19/2023 0.00 2,750.00 2,750.00 06/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 5,139.23 115.49 5,254.72 06/23/2020 Interest 931142EJ8 200,000.00 Wal-Mart Stores Note 3.125% Due 6/23/2021 0.00 3,125.00 3,125.00 JUN 2020 156,074.31 23,387.99 179,462.30 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 26 3.A.3.a Packet Pg. 39 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 07/07/2020 Interest 3135G0X24 225,000.00 FNMA Note 1.625% Due 1/7/2025 0.00 1,797.66 1,797.66 07/10/2020 Interest 24422EUR8 150,000.00 John Deere Capital Corp Note 3.45% Due 1/10/2024 0.00 2,587.50 2,587.50 07/11/2020 Interest 06051GEU9 130,000.00 Bank of America Corp Note 3.3% Due 1/11/2023 0.00 2,145.00 2,145.00 07/11/2020 Interest 89236TDP7 130,000.00 Toyota Motor Credit Corp Note 2.6% Due 1/11/2022 0.00 1,690.00 1,690.00 07/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 819.44 66.17 885.61 07/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,149.53 114.28 6,263.81 07/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,332.16 92.24 3,424.40 07/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,498.90 124.74 1,623.64 07/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 2,698.01 39.12 2,737.13 07/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,464.93 63.90 1,528.83 07/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 4,539.98 74.95 4,614.93 07/19/2020 Interest 3135G0T94 290,000.00 FNMA Note 2.375% Due 1/19/2023 0.00 3,443.75 3,443.75 07/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 4,890.96 102.86 4,993.82 07/29/2020 Interest 06406RAE7 145,000.00 Bank of NY Mellon Corp Callable Note Cont 12/29/2022 2.95% Due 1/29/2023 0.00 2,138.75 2,138.75 07/29/2020 Interest 91159HHL7 125,000.00 US Bancorp Callable Note 1X 12/29/2020 2.35% Due 1/29/2021 0.00 1,468.75 1,468.75 07/29/2020 Maturity 3130A5Z77 125,000.00 FHLB Note 1.83% Due 7/29/2020 125,000.00 1,143.75 126,143.75 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 27 3.A.3.a Packet Pg. 40 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 07/31/2020 Interest 912828Y87 220,000.00 US Treasury Note 1.75% Due 7/31/2024 0.00 1,925.00 1,925.00 07/31/2020 Interest 912828N89 160,000.00 US Treasury Note 1.375% Due 1/31/2021 0.00 1,100.00 1,100.00 07/31/2020 Interest 912828S76 260,000.00 US Treasury Note 1.125% Due 7/31/2021 0.00 1,462.50 1,462.50 07/31/2020 Interest 912828Y61 175,000.00 US Treasury Note 2.75% Due 7/31/2023 0.00 2,406.25 2,406.25 JUL 2020 150,393.91 23,987.17 174,381.08 08/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,254.60 87.29 3,341.89 08/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,502.28 122.32 1,624.60 08/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 821.15 64.66 885.81 08/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,468.40 60.42 1,528.82 08/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 2,554.60 35.02 2,589.62 08/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,157.66 107.21 6,264.87 08/17/2020 Interest 3135G0N82 315,000.00 FNMA Note 1.25% Due 8/17/2021 0.00 1,968.75 1,968.75 08/18/2020 Interest 3130A7CV5 200,000.00 FHLB Note 1.375% Due 2/18/2021 0.00 1,375.00 1,375.00 08/18/2020 Maturity 857477AS2 125,000.00 State Street Bank Note 2.55% Due 8/18/2020 125,000.00 1,593.75 126,593.75 08/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 4,311.23 67.64 4,378.87 08/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 4,641.79 90.83 4,732.62 08/28/2020 Interest 17275RBD3 150,000.00 Cisco Systems Note 2.2% Due 2/28/2021 0.00 1,650.00 1,650.00 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 28 3.A.3.a Packet Pg. 41 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 08/31/2020 Interest 9128282U3 230,000.00 US Treasury Note 1.875% Due 8/31/2024 0.00 2,156.25 2,156.25 08/31/2020 Interest 912828L24 150,000.00 US Treasury Note 1.875% Due 8/31/2022 0.00 1,406.25 1,406.25 08/31/2020 Maturity 912828L32 200,000.00 US Treasury Note 1.375% Due 8/31/2020 200,000.00 1,375.00 201,375.00 AUG 2020 349,711.71 12,160.39 361,872.10 09/06/2020 Interest 3135G0W33 200,000.00 FNMA Note 1.375% Due 9/6/2022 0.00 1,375.00 1,375.00 09/08/2020 Interest 313383YJ4 200,000.00 FHLB Note 3.375% Due 9/8/2023 0.00 3,375.00 3,375.00 09/11/2020 Interest 313378WG2 300,000.00 FHLB Note 2.5% Due 3/11/2022 0.00 3,750.00 3,750.00 09/13/2020 Interest 3130A2UW4 150,000.00 FHLB Note 2.875% Due 9/13/2024 0.00 2,156.25 2,156.25 09/15/2020 Interest 68389XBK0 200,000.00 Oracle Corp Callable Note Cont 8/15/2021 1.9% Due 9/15/2021 0.00 1,900.00 1,900.00 09/15/2020 Interest 084670BR8 150,000.00 Berkshire Hathaway Callable Note Cont 1/15/2023 2.75% Due 3/15/2023 0.00 2,062.50 2,062.50 09/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 822.86 63.15 886.01 09/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,176.83 82.47 3,259.30 09/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,165.80 100.13 6,265.93 09/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,505.65 119.91 1,625.56 09/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,471.87 56.94 1,528.81 09/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 2,410.87 31.15 2,442.02 09/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 4,081.90 60.71 4,142.61 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 29 3.A.3.a Packet Pg. 42 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 09/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 4,391.69 79.42 4,471.11 09/24/2020 Maturity 02665WAZ4 150,000.00 American Honda Finance Note 2.45% Due 9/24/2020 150,000.00 1,837.50 151,837.50 09/30/2020 Interest 9128284D9 210,000.00 US Treasury Note 2.5% Due 3/31/2023 0.00 2,625.00 2,625.00 09/30/2020 Interest 912828W89 200,000.00 US Treasury Note 1.875% Due 3/31/2022 0.00 1,875.00 1,875.00 09/30/2020 Interest 912828T34 125,000.00 US Treasury Note 1.125% Due 9/30/2021 0.00 703.13 703.13 09/30/2020 Interest 912828W71 210,000.00 US Treasury Note 2.125% Due 3/31/2024 0.00 2,231.25 2,231.25 SEP 2020 174,027.47 24,484.51 198,511.98 10/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 824.58 61.63 886.21 10/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,475.36 53.44 1,528.80 10/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,098.89 77.75 3,176.64 10/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,509.04 117.49 1,626.53 10/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 2,266.86 27.49 2,294.35 10/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,173.94 93.04 6,266.98 10/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 3,852.02 54.15 3,906.17 10/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 4,140.66 68.62 4,209.28 10/31/2020 Interest 912828Q78 210,000.00 US Treasury Note 1.375% Due 4/30/2021 0.00 1,443.75 1,443.75 OCT 2020 23,341.35 1,997.36 25,338.71 11/03/2020 Interest 037833AK6 200,000.00 Apple Inc Note 2.4% Due 5/3/2023 0.00 2,400.00 2,400.00 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 30 3.A.3.a Packet Pg. 43 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 11/11/2020 Interest 369550BE7 125,000.00 General Dynamics Corp Note 3% Due 5/11/2021 0.00 1,875.00 1,875.00 11/13/2020 Interest 46625HJX9 145,000.00 JP Morgan Chase Note 3.625% Due 5/13/2024 0.00 2,628.13 2,628.13 11/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 826.30 60.11 886.41 11/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,182.10 85.94 6,268.04 11/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 3,020.74 73.16 3,093.90 11/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,512.44 115.06 1,627.50 11/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 2,122.54 24.06 2,146.60 11/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,478.84 49.94 1,528.78 11/17/2020 Maturity 3137EAEK1 225,000.00 FHLMC Note 1.875% Due 11/17/2020 225,000.00 2,109.38 227,109.38 11/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 3,621.60 47.95 3,669.55 11/21/2020 Interest 808513AW5 150,000.00 Charles Schwab Corp Callable Note Cont 4/21/2021 3.25% Due 5/21/2021 0.00 2,437.50 2,437.50 11/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 3,888.70 58.45 3,947.15 11/30/2020 Interest 912828M80 200,000.00 US Treasury Note 2% Due 11/30/2022 0.00 2,000.00 2,000.00 11/30/2020 Interest 912828G53 220,000.00 US Treasury Note 1.875% Due 11/30/2021 0.00 2,062.50 2,062.50 11/30/2020 Interest 912828WN6 200,000.00 US Treasury Note 2% Due 5/31/2021 0.00 2,000.00 2,000.00 11/30/2020 Interest 912828YV6 230,000.00 US Treasury Note 1.5% Due 11/30/2024 0.00 1,725.00 1,725.00 11/30/2020 Maturity 912828M98 205,000.00 US Treasury Note 1.625% Due 11/30/2020 205,000.00 1,665.63 206,665.63 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 31 3.A.3.a Packet Pg. 44 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount NOV 2020 452,653.26 21,417.81 474,071.07 12/08/2020 Interest 3130A0F70 220,000.00 FHLB Note 3.375% Due 12/8/2023 0.00 3,712.50 3,712.50 12/09/2020 Interest 3130A3KM5 100,000.00 FHLB Note 2.5% Due 12/9/2022 0.00 1,250.00 1,250.00 12/10/2020 Interest 313379Q69 200,000.00 FHLB Note 2.125% Due 6/10/2022 0.00 2,125.00 2,125.00 12/11/2020 Maturity 3130A3UQ5 225,000.00 FHLB Note 1.875% Due 12/11/2020 225,000.00 2,109.38 227,109.38 12/13/2020 Interest 3130A3GE8 250,000.00 FHLB Note 2.75% Due 12/13/2024 0.00 3,437.50 3,437.50 12/14/2020 Interest 3130A1XJ2 210,000.00 FHLB Note 2.875% Due 6/14/2024 0.00 3,018.76 3,018.76 12/15/2020 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 1,977.93 20.84 1,998.77 12/15/2020 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,190.27 78.83 6,269.10 12/15/2020 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 2,942.41 68.68 3,011.09 12/15/2020 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,515.84 112.63 1,628.47 12/15/2020 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 828.02 58.59 886.61 12/15/2020 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,482.35 46.42 1,528.77 12/18/2020 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 3,390.60 42.13 3,432.73 12/19/2020 Interest 3137EAEN5 200,000.00 FHLMC Note 2.75% Due 6/19/2023 0.00 2,750.00 2,750.00 12/21/2020 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 3,635.81 48.89 3,684.70 12/23/2020 Interest 931142EJ8 200,000.00 Wal-Mart Stores Note 3.125% Due 6/23/2021 0.00 3,125.00 3,125.00 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 32 3.A.3.a Packet Pg. 45 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Cash Flow Report As of January 31, 2020 City of San Jacinto Account #10167 Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 12/29/2020 Call 91159HHL7 125,000.00 US Bancorp Callable Note 1X 12/29/2020 2.35% Due 1/29/2021 125,000.00 1,223.96 126,223.96 DEC 2020 371,963.23 23,229.11 395,192.34 01/07/2021 Interest 3135G0X24 225,000.00 FNMA Note 1.625% Due 1/7/2025 0.00 1,828.13 1,828.13 01/10/2021 Interest 24422EUR8 150,000.00 John Deere Capital Corp Note 3.45% Due 1/10/2024 0.00 2,587.50 2,587.50 01/11/2021 Interest 06051GEU9 130,000.00 Bank of America Corp Note 3.3% Due 1/11/2023 0.00 2,145.00 2,145.00 01/11/2021 Interest 89236TDP7 130,000.00 Toyota Motor Credit Corp Note 2.6% Due 1/11/2022 0.00 1,690.00 1,690.00 01/15/2021 Paydown 477870AC3 40,000.00 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 829.74 57.07 886.81 01/15/2021 Paydown 47789JAB2 34,178.91 John Deere Owner Trust 2019-A A2 2.85% Due 12/15/2021 1,485.86 42.90 1,528.76 01/15/2021 Paydown 47788BAD6 41,422.03 John Deere Owner Trust 2017-B A3 1.82% Due 10/15/2021 1,833.02 17.84 1,850.86 01/15/2021 Paydown 43815NAC8 80,000.00 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 8/15/2023 2,863.90 64.31 2,928.21 01/15/2021 Paydown 65478WAE5 130,000.00 Nissan Auto Receivables Trust 2016-C A4 1.38% Due 1/17/2023 6,198.46 71.71 6,270.17 01/15/2021 Paydown 65479JAD5 85,000.00 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 7/15/2024 1,519.25 110.19 1,629.44 01/18/2021 Paydown 89238KAD4 72,710.72 Toyota Auto Receivables Trust 2017-D A3 1.93% Due 1/18/2022 3,159.06 36.67 3,195.73 01/19/2021 Interest 3135G0T94 290,000.00 FNMA Note 2.375% Due 1/19/2023 0.00 3,443.75 3,443.75 01/21/2021 Paydown 43815HAC1 70,000.00 Honda Auto Receivables Trust 2018-3 A3 2.95% Due 8/22/2022 3,381.98 39.95 3,421.93 01/29/2021 Interest 06406RAE7 145,000.00 Bank of NY Mellon Corp Callable Note Cont 12/29/2022 2.95% Due 1/29/2023 0.00 2,138.75 2,138.75 JAN 2021 21,271.27 14,273.77 35,545.04 TOTAL 2,490,498.67 210,859.84 2,701,358.51 Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 33 3.A.3.a Packet Pg. 46 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Important DisclosuresCity of San Jacinto Account #10167 Chandler Asset Management, Inc. ;͞Chandler͟Ϳis an SEC registered investment adviser. For additional information about our firm, please see our current disclosures (Form ADV). To obtain a copy of our current disclosures, you may contact your client service representative by calling the number on the front of this statement or you may visit our website at www.chandlerasset.com. Information contained in this monthly statement is confidential and is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of this statement, but may become outdated or superseded at any time without notice. Custody: Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account. Valuation: Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance: Performance results are presented gross-of-advisory fees and represent the client ͛s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Source ice Data Indices, LLC ("ICE"), used with permission. ICE PERMITS USE OF THE ICE INDICES AND RELATED DATA ON AN "AS IS" BASIS; ICE, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM. NEITHER ICE DATA, ITS AFFILIATES OR THEIR RESPECTIVE THIRD PARTY PROVIDERS GUARANTEE THE QUALITY, ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES OR THE INDEX DATA OR ANY COMPONENT THEREOF, AND THE INDICES AND INDEX DATA AND ALL COMPONENTS THEREOF ARE PROVIDED ON AN "AS IS" BASIS AND LICENSEE'S USE IS AT LICENSEE'S OWN RISK. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY DO NOT SPONSOR, ENDORSE, OR RECOMMEND CHANDLER, OR ANY OF ITS PRODUCTS OR SERVICES. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Ratings: Ratings information have been provided by Moody͛s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities ;͞MBS͟Ϳreflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody ͛s and Fitch respectively. Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 34 3.A.3.a Packet Pg. 47 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Benchmark Index & DisclosuresCity of San Jacinto California Account #10167 Benchmark Index Disclosure ICE BAML 1-3 Yr US Treasury Index The ICE BAML 1-3 Year US Treasury Index tracks the performance of US dollar denominated sovereign debt publicly issued by the US government in its domestic market. Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of $1 billion. Qualifying securities must have at least 18 months to final maturity at the time of issuance. (Index: G1O2. Please visit www.mlindex.ml.com for more information) ICE BAML 1-3 Yr US Corp/Govt Rated AAA-A Index The ICE BAML 1-3 AAA-A Year US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational and corporate securities. Qualifying securities must be rated AAA through A3 (based on an average of Moody͛s, S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities. (Index: GVPB. Please visit www.mlindex.ml.com for more information) Execution Time: 2/3/2020 8:13:05 PMChandler Asset Management - CONFIDENTIAL Page 35 3.A.3.a Packet Pg. 48 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) City of San Jacinto Public Trust Advisors LLC 595 S. San Jacinto Ave.550 South Hope Street San Jacinto, CA 92583 Suite 560 Los Angeles, CA 90071 Monthly Investment Report for Period Ended January 31, 2020 3.A.3.a Packet Pg. 49 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Investment Management Portfolio Review Page Investment Portfolio Summary Comparison 3 Total Return Performance Summary 4 Investment Portfolio Maturity Distribution 5 Investment Portfolio Maturity Distribution By Security Type 6 Investment Portfolio Rating Distribution 7 Investment Portfolio Security Distribution - Market Value 8 Investment Portfolio Security Distribution - Historical Cost 9 Investment Portfolio Compliance 10 Additional Disclosure 11 Portfolio Holdings Detail 12 City of San Jacinto Summary 3.A.3.a Packet Pg. 50 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) City of San Jacinto January 1, 2020 Beginning Balance January 31, 2020 Ending Balance Portfolio Characteristic January 1, 2020 Beginning Balance January 31, 2020 Ending Balance Historical Cost 10,726,509.49$ $ Book Yield Gross 2.08%2.08% Book Value 10,734,342.99$ $ Market Yield Gross 1.66%1.39% Accrued Interest 59,252.02 Weighted Average Coupon 2.13%2.12% Book Value Plus Accrued 10,793,595.01$ $ Duration 2.60 Years 2.53 Years Net Unrealized Gain/Loss 78,119.03 Weighted Effective Maturity 2.71 Years 2.62 Years Market Value Plus Accrued(2)10,871,714.04$ $ Weighted Final Maturity 2.72 Years 2.63 Years Net Pending Transactions 0.00 Market Value Plus Accrued Net(2)10,871,714.04$ $ City of San Jacinto January 2020 Net Income Portfolio Compliance Compliant Interest Income 19,179.80$ Security Distribution YES Net Amortization/Accretion (310.74)Maturity Distribution YES Net Realized Gain/Loss(3)0.00 Rating Distribution YES Miscellaneous Income - Net Income 18,869.06$ City of San Jacinto Summary Comparison for the period January 1, 2020 to January 31, 2020 (1) Payables represent amounts due to settle security transactions that have been executed but have not settled as of period end. The funds used to settle these trades may come from a variety of sources including cash within the portfolio, proceeds from future security transactions including maturities and sales, or other sources including money market funds. For reporting purposes, a payable is created for over-period settlements which are reflected in the detailed holdings. (2) Market Value Plus Accrued Net represents the market value of the portfolio net payables and recievables from transactions that settle in the following reporting period. (3) MBS paydowns may result in negative realized losses rather than amortization in as a result of accounting method. Page 3 10,967,844.82 45.42 10,967,799.41 155,484.93 10,812,314.48 43,502.92 10,768,811.56 10,761,288.80 3.A.3.a Packet Pg. 51 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Trailing Month Trailing 3 Months Trailing 12 Months Year to Date Total Return Performance Periodic Periodic Periodic Periodic City of San Jacinto 0.89%1.06%4.23%0.89% BofA ML 1-3 Year U.S. Treasuries 0.54%0.72%3.83%0.54% Trailing 3 Years Trailing 5 Years Since Inception* Total Return Performance Annualized Annualized Annualized City of San Jacinto 2.22%1.54%1.32% BofA ML 1-3 Year U.S. Treasuries 1.98%1.40%1.19% *Total return since inception date: December 1, 2012 Annualized total return performance presented for investment periods longer than one year. Return information obtained from Bloomberg. City of San Jacinto Total Return January 1, 2020 to January 31, 2020 0.89% 1.06% 4.23% 0.89% 2.22% 1.32% 0.54% 0.72% 3.83% 0.54% 1.98% 1.19% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Trailing Month Trailing 3 Months Trailing 12 Months Year to Date Trailing 3 Years Trailing 5 Years Since Inception*YieldTotal Return Performance vs. Benchmark City of San Jacinto BofA ML 1-3 Year U.S. Treasuries Page 4 3.A.3.a Packet Pg. 52 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Maturity Distribution January 1, 2020 Beginning Balance January 31, 2020 Ending Balance Portfolio Allocation Distribution Change 0-3 Months 35,918.88$ 70,698.19$ 0.64%0.31% 3-6 Months - - 0.00%0.00% 6-9 Months - - 0.00%0.00% 9-12 Months - - 0.00%0.00% 1-2 Years 3,538,990.49 3,675,068.43 33.51%0.96% 2-3 Years 2,887,878.90 3,526,168.74 32.15%5.59% 3-4 Years 2,412,942.30 1,674,280.80 15.27%-6.93% 4-5 Years 1,995,983.48 2,021,583.26 18.43%0.07% 5-6 Years - - 0.00%0.00% 6 Years +- - 0.00%0.00% Total Portfolio 10,871,714.04$ 10,967,799.41$ 100.00% City of San Jacinto Maturity Distribution Market Value Basis January 1, 2020 to January 31, 2020 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0-3 M 3-6 M 6-9 M 9-12 M 1-2 Yr 2-3 Yr 3-4 Yr 4-5 Yr 5-6 Yr 6 Yr + Maturity Distribution Comparison January 1, 2020 January 31, 2020 0-3 M 0.64% 1-2 Yr 33.51% 2-3 Yr 32.15% 3-4 Yr 15.27%4-5 Yr 18.43% Maturity Distribution Page 5 3.A.3.a Packet Pg. 53 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Security Distribution 0-3 Months 3-6 Months 6-9 Months 9-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total Portfolio Cash -$ -$ -$ -$ -$ -$ -$ -$ -$ Money Market Funds 70,698 - - - - - - - 70,698 Certificates of Deposit - - - - - - - - - Commercial Paper - - - - - - - - - U.S. Treasury Notes - - - - 2,824,871 2,814,002 1,118,574 2,021,583 8,779,031 U.S. Agency Notes - - - - - - - - - Federal Inst. (GSE)*- - - - 668,839 327,782 555,706 - 1,552,328 Corporate Notes - - - - 181,358 384,384 - - 565,742 Asset Backed (ABS)- - - - - - - - - Municipal Bonds - - - - - - - - - Total 70,698$ -$ -$ -$ 3,675,068$ 3,526,169$ 1,674,281$ 2,021,583$ 10,967,799$ *Mortgage backed securities shown to effective maturity. City of San Jacinto Maturity Distribution Market Value Basis as of January 31, 2020 $- $5,000,000 0-3 Months 3-6 Months 6-9 Months 9-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Maturity Distribution By Type Municipal Bonds Asset Backed (ABS) Corporate Notes Federal Inst. (GSE)* U.S. Agency Notes U.S. Treasury Notes Commercial Paper Certificates of Deposit Money Market Funds Cash Page 6 3.A.3.a Packet Pg. 54 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) S&P Rating Distribution January 31, 2020 Ending Balance Portfolio Allocation Short Term Rating Distribution A-1+-$ 0.00% A-1 - 0.00% A-2 - 0.00% Total Short Term Ratings -$ 0.00% Long Term Rating Distribution AAA Rating 364,738.89$ 3.33% AA Rating 10,421,702.16 95.02% A Rating 181,358.36 1.65% Below A - 0.00% Not Rated - 0.00% Total Long Term Rating 10,967,799.41$ 100.00% Total Portfolio 10,967,799.41$ 100.00% Moody's Rating Distribution January 31, 2020 Ending Balance Portfolio Allocation Short Term Rating Distribution P-1 -$ 0.00% P-2 - 0.00% Total Short Term Ratings -$ 0.00% Long Term Rating Distribution Aaa Rating 10,478,548.93$ 95.54% Aa Rating 307,892.12 2.81% A Rating 181,358.36 1.65% Below A - 0.00% Not Rated - 0.00% Total Long Term Rating 10,967,799.41$ 100.00% Total Portfolio 10,967,799.41$ 100.00% City of San Jacinto Rating Distribution Market Value Basis as of January 31, 2020 AAA Rating 3.33% AA Rating 95.02%A Rating 1.65% Portfolio Allocation By Standard and Poors' Rating Aaa Rating 95.54% Aa Rating 2.81% A Rating 1.65% Portfolio Allocation By Moody's Rating Page 7 3.A.3.a Packet Pg. 55 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Security Distribution January 1, 2020 Beginning Balance Portfolio Allocation January 31, 2020 Ending Balance Book Yield Portfolio Allocation Change in Allocation Permitted by Policy*Compliant Cash 136.75$ 0.00%-$ 0.00%0.00%0.00%YES LGIP - 0.00%- 0.00%0.00%0.00%YES U.S. Treasury Notes 8,728,299.43 80.28%8,779,030.83 2.01%80.04%-0.24%NO U.S. Agency Notes - 0.00%- 0.00%0.00%0.00%YES FNMA 134,241.93 1.23%133,279.69 2.65%1.22%-0.02%NO FHLMC 1,408,468.99 12.96%1,419,048.55 2.38%12.94%-0.02%NO FFCB - 0.00%- 0.00%0.00%0.00%YES FHLB - 0.00%- 0.00%0.00%0.00%YES Fed Instrumentality Subtotal 1,542,710.92$ 14.19%1,552,328.24$ 2.40%14.15%-0.04%NO Asset Backed Securities - 0.00%- 0.00%0.00%0.00%YES Commercial Paper - 0.00%- 0.00%0.00%0.00%YES Corporate Notes 564,784.81 5.19%565,742.15 2.38%5.16%-0.04%NO Bankers Acceptances - 0.00%- 0.00%0.00%0.00%YES Money Market Funds 35,782.13 0.33%70,698.19 1.18%0.64%0.32%YES Municipal Bonds - 0.00%- 0.00%0.00%0.00%YES Intergovernmental Funds - 0.00%- 0.00%0.00%0.00%YES Certificates of Deposit - 0.00%- 0.00%0.00%0.00%YES Total Portfolio Market Value 10,871,714.04$ 100.00%10,967,799.41$ 2.08%100.00% *Permitted allocation based on aggregate assets as defined within the investment policy. City of San Jacinto Market Value Basis Security Distribution January 1, 2020 to January 31, 2020 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 CashLGIPUSTAgencyFNMAFHLMCFFCBFHLBABSCPCorpBAMMFMuniInter GovCDAsset Balance By Security Type (in millions) January 1, 2020 January 31, 2020 UST 80.04% FNMA 1.22% FHLMC 12.94% Corp 5.16% MMF 0.64% Ending Portfolio Allocation Page 8 3.A.3.a Packet Pg. 56 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Security Distribution January 1, 2020 Beginning Balance Portfolio Allocation January 31, 2020 Ending Balance Book Yield Portfolio Allocation Change in Allocation Permitted by Policy*Compliant Cash 136.75$ 0.00%-$ 0.00%0.00%0.00%YES U.S. Treasury Notes 8,617,455.30 80.34%8,617,455.30 2.01%80.08%-0.26%NO U.S. Agency Notes - 0.00%- 0.00%0.00%0.00%YES FNMA 129,906.40 1.21%129,906.40 2.65%1.21%0.00%NO FHLMC 1,389,052.92 12.95%1,389,052.92 2.38%12.91%-0.04%NO FFCB - 0.00%- 0.00%0.00%0.00%YES FHLB - 0.00%- 0.00%0.00%0.00%YES Fed Instrumentality Subtotal 1,518,959.32$ 14.16%1,518,959.32$ 2.40%14.12%-0.05%NO Asset Backed Securities - 0.00%- 0.00%0.00%0.00%YES Commercial Paper - 0.00%- 0.00%0.00%0.00%YES Corporate Notes 554,176.00 5.17%554,176.00 2.38%5.15%-0.02%NO Bankers Acceptances - 0.00%- 0.00%0.00%0.00%YES Money Market Funds 35,782.13 0.33%70,698.19 1.18%0.66%0.32%YES Municipal Bonds - 0.00%- 0.00%0.00%0.00%YES Intergovernmental Funds - 0.00%- 0.00%0.00%0.00%YES Certificates of Deposit - 0.00%- 0.00%0.00%0.00%YES Total Portfolio Historical Cost 10,726,509.49$ 100.00%10,761,288.80$ 2.08%100.00% *Permitted allocation based on aggregate assets as defined within the investment policy. City of San Jacinto Historical Cost Basis Security Distribution January 1, 2020 to January 31, 2020 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 CashUSTAgencyFNMAFHLMCFFCBFHLBABSCPCorpBAMMFMuniInter GovCDAsset Balance By Security Type (in millions) January 1, 2020 January 31, 2020 UST 80.08% FNMA 1.21% FHLMC 12.91% Corp 5.15% MMF 0.66% Ending Portfolio Allocation Page 9 3.A.3.a Packet Pg. 57 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Policy Section Description Compliance Requirement Compliant Policy Section Description Compliance Requirement Compliant IX. 1,2 Municipal Bonds Rated A or better by 1 NRSRO, 5% issuer limitation, 30% total portfolio limit, 5-year maturity limit Compliant IX. 14 Pass-Through Securities Issuer debt rated at least A by 2 NRSRO's; Must be rated in the AA category by 2 NRSRO's; 20% total portfolio limit, 5-year maturity limit Compliant IX. 1 U.S. Treasury No limitations Compliant IX. 2 Federal Agency No limitations Compliant IX. 3 Bankers Acceptances Rated A1 or better and have long term debt rated A or better by 2 NRSRO's; Maturity ≤ to 180 days, 40% total portfolio limit, 5% issuer limit Compliant IX. 4 Federally Insured Time Deposits Limited to amounts covered under federal insurance; 20% total portfolio limit in combination with IX.5; 5-year maturity limit Compliant IX. 17.b Money Market Funds Registered with SEC under 1940 Act, have highest ranking by 2 NRSRO's; retained advisor registered (or exempt from registration) with 5-years experience investing in securities authorized by CA 53601 and at least $500 million of assets; 20% total portfolio limit Compliant IX. 5 Time Deposits Fully collateralized per CA law, 20% limit when combined with IX.4; Issuer must have long-term debt rated A or higher and/or short-term debt rated A1 or higher by 2 NRSRO's, 5-year maturity limit Compliant IX. 18 Supranationals US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB; rated AA or higher by 1 NRSRO; 30% total portfolio limit; 10% issuer limit; 5-year maturity limit Compliant IX. 6 CDARS 30% limit in combination of CD's (including CDARS); 5-year maturity limit Compliant X.A.1 Futures and Options Prohibited Compliant IX. 7 Negotiable CD's Issuer must have long-term debt rated A or higher and/or short-term debt rated A1 or higher by 2 NRSRO's; Maturity ≤ to 5 years, 30% total portfolio limit, 5% issuer limit Compliant X.A.2 Inverse Floaters, Range Notes, and Mortgage Derived IO Strips Prohibited Compliant IX. 8 Collateralized Bank Deposits Collateralized with pleged securities per CA Government Code Section 53651 Compliant X.A.3 Potential Zero Accrual Securities Prohibited Compliant X.A.5 Purchasing Securities on Margin Prohibited Compliant X.A.6 Reverse Repos or other leverage Prohibited Compliant X.A.7 Foreign Currency Securities Prohibited Compliant X.B.2 Single Issuer Limitation 5% issuer limitation, except U.S. Government, its agencies & enterprises, Money Market Mutual Funds, Mutual Funds, LAIF, LGIP's, and Supranationals Compliant IX. 11 Local Agency Investment Fund 70% total portfolio limit, up to the maximum permitted balance Compliant X.C.2 Callable Security Limitation 20% of total portfolio (excluding Make Whole Call securities)Compliant IX. 12 Local Government Investment Pools Riveride County Investment Fund limited to 70% of the portfolio; JPA Pools limited to 50% of the portfolio Compliant X.C.3 Maximum Security Maturity Individual security maturities limited to 5-years or less Compliant IX. 13 Corporate Bonds Corporations organized and operating in the U.S. or depository institutions licensed by the U.S. or any state and operating in the U.S.; Rated in the A category or better by 2 NRSRO's, 5-year maturity limit; 30% total portfolio limit, 5% issuer limit Compliant X.C.4 Portfolio Duration Limitation Average portfolio duration will be managed to be approximatly equal to the Market Benchmark selected by the City (typically +/- 20 of benchmark duration) Compliant City of San Jacinto Portfolio Compliance January 1, 2020 to January 31, 2020 IX. 17.e Mutual Funds Invests in securities authorized by specified provisions in CA Government Code Section 53601; have highest ranking by 2 NRSRO's; retained advisor registered (or exempt from registration) with 5-years experience investing in securities authorized by CA 53601 and at least $500 million of assets; 10% per fund limit; 20% limit when combined with IX.17.b Compliant IX. 9 Repurchase Agreements Collateralized at 102% in accordance with policy; 1-year maturity limit, no % portfolio limit, collateral held by custodian bank; subject to master repurchase agreement substantially in SIFMA's form Compliant IX. 10 Commercial Paper Issuer is organized and operating in the U.S. with assets of at least $500 million; Issuer short-term ratings of A1 or higher and long-term ratings of A or higher by 2 NRSRO's; Maturity ≤ 270 days; 25% total portfolio limit; 5% issuer limit Compliant Page 10 3.A.3.a Packet Pg. 58 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Additional Disclosure This statement is for general information purposes only and is not intended to provide specific advice or recommendations. P lease review the contents of this statement carefully. Should you have any questions regarding the information presented, calculation methodology, investment portfolio or security detail, or any other facet of your statement, please feel free to contact us. Public Trust Advisor’s monthly statement is intended to detail our investment advisory activity as well as the activity of an y accounts held by clients in pools that are managed by Public Trust Advisors. The custodian bank maintains the control of assets and executes and settles all investm ents transactions. The custodian statement is the official record of security and cash holdings transactions. Public Trust Advisors recognizes that clients ma y use these reports to facilitate record keeping; therefore the custodian bank statement and the Public Trust Advisors statement should be reconciled and differences resolved. Many custodians use a settlement date basis which may result in the need to reconcile due to a timing difference. Please contact your relationshi p manager or our toll free number 855- 395-3954 with questions regarding your account. Public Trust Advisors does not have the authority to withdraw funds from or deposit funds to the custodian. Our clients retai n responsibility for their internal accounting policies; implementing and enforcing internal controls and generating ledger entries or otherwise recording transa ctions. Pricing sources from our reporting platform are provided by Clearwater reporting platform and are established by Clearwater’s internal pricing procedures. Clearwater utilizes a hierarchical pricing model which starts with one of the industry’s pricing sources, S&P Capital IQ. Se curities with short maturities and infrequent secondary market trades are typically priced via mathematical calculations. The Securities in this investment por tfolio, including shares of mutual funds, are not guaranteed or otherwise protected by Public trust Advisors, the FDIC (except for certain non -negotiable certificates of deposit) or any government agency, unless otherwise specifically stated. Investment in fixed income securities involves risks, including the possible lo ss of the amount invested. Past performance is not an indication of future performance. Beginning and Ending Balances based on Market Value plus Accrued Interest on a Trade Date basis. Public Trust Advisors is an investment advisor registered with the Securities and Exchange Commission, and is required to mai ntain a written disclosure statement of our background and business experience. If you would like to receive a copy of our current disclosure statement, privacy p olicy, or code of ethics please contact Service Operations at the address below. Public Trust Advisors 717 17th Street, Suite 1850 Denver, CO 80202 Page 11 3.A.3.a Packet Pg. 59 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Portfolio Holdings Portfolio Income Portfolio Transactions Issuer Concentration Security Concentration Portfolio Activity Summary City of San Jacinto Detail Page 12 3.A.3.a Packet Pg. 60 Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Month End Report Trade DateSan Jacinto, City of (66779)Month End (M1 Y2020)01/01/2020 - 01/31/2020Dated: 02/06/2020Locked Down3.A.3.aPacket Pg. 61Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Holdings Report Trade Date (San Jacinto, City of (66779))1Income Detail Report Trade Date (San Jacinto, City of (66779))4Transactions Realized Gain Loss Report (San Jacinto, City of (66779))6Issuer Concentration with Yield GASB 40 Trade Date (San Jacinto, City of(66779))7Security Type GASB 40 Trade Date (San Jacinto, City of (66779))11Portfolio Activity Summary (San Jacinto, City of (66779))15Table of ContentsDated: 02/06/20203.A.3.aPacket Pg. 62Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Description,Identifier,Security Type,CouponEffective Maturity,Final Maturity,Callable,Next Call DateOriginal Cost,Current Units,Market PriceTrade Date,Settle DateMoodysRating,S&P Rating,Fitch RatingBook Value,Book Value + AccruedAccrued Balance,Net Unrealized Gain/LossMarket Value,Market Value + AccruedFEDERAL HOME LOAN MORTGAGE CORP3137EAEL9AGCY BOND2.37502/16/202102/16/2021N---521,808.00525,000.00100.922804/17/201804/19/2018AaaAA+---523,800.58529,515.425,714.846,044.27529,844.85535,559.70FEDERAL NATIONAL MORTGAGE ASSOCIATION3135G0U92AGCY BOND2.62501/11/202201/11/2022N---129,906.40130,000.00102.377001/09/201901/11/2019AaaAA+---129,938.57130,128.15189.583,151.53133,090.10133,279.69AMERICAN HONDA FINANCE CORP02665WCP4CORP3.37512/10/202112/10/2021N---174,916.00175,000.00103.155210/03/201810/10/2018A2A---174,946.45175,783.17836.725,575.19180,521.64181,358.36EXXON MOBIL CORP30231GBB7CORP1.90208/16/202208/16/2022N---75,000.0075,000.00101.117108/13/201908/16/2019AaaAA+---75,000.0075,653.81653.81837.8675,837.8676,491.67APPLE INC037833DE7CORP2.40012/13/202201/13/2023Y12/13/2022304,260.00300,000.00102.510712/10/201912/12/2019Aa1AA+---304,071.21304,431.21360.003,460.91307,532.12307,892.12FHMS K033 A23137B4WB8FHLMC3.06006/09/202307/25/2023Y---258,544.92250,000.00104.411312/12/201912/17/2019AaaAA+---258,237.69258,875.19637.502,790.51261,028.20261,665.70FHMS K725 A2US3137BWWD24FHLMC3.00212/26/202301/25/2024Y---289,012.50280,000.00104.764412/12/201912/17/2019AaaAAA---288,734.04289,434.51700.474,606.19293,340.24294,040.70FHMS K024 A23137AXHP1FHLMC CMO2.57308/20/202209/25/2022Y---319,687.50320,000.00102.217605/02/201905/07/2019AaaAA+---319,636.90320,323.03686.137,459.42327,096.32327,782.45FIRST AMER:GVT OBLG Y31846V203MMFUND1.20001/31/202001/31/2020N---70,698.1970,698.191.0000------AaaAAAm---70,698.1970,698.190.000.0070,698.1970,698.19UNITED STATES TREASURY9128284P2US GOV2.62505/15/202105/15/2021N---328,723.83330,000.00101.492207/26/201807/30/2018AaaAA+---329,404.22331,260.471,856.255,520.04334,924.26336,780.51UNITED STATES TREASURY912828Y20US GOV2.62507/15/202107/15/2021N---436,803.13440,000.00101.722709/24/201809/26/2018AaaAA+---438,315.15438,854.58539.429,264.73447,579.88448,119.30UNITED STATES TREASURY912828F21US GOV2.12509/30/202109/30/2021N---428,491.99435,000.00101.207012/17/201812/20/2018AaaAA+---431,056.04434,187.813,131.769,194.41440,250.45443,382.21UNITED STATES TREASURY912828WY2US GOV2.25007/31/202107/31/2021N---436,940.63440,000.00101.226601/10/201901/15/2019AaaAA+---438,176.89438,204.0827.207,220.15445,397.04445,424.24UNITED STATES TREASURY9128285R7US GOV2.62512/15/202112/15/2021N---250,664.06250,000.00102.324201/10/201901/15/2019AaaAA+---250,433.09251,293.75860.665,377.41255,810.50256,671.16UNITED STATES TREASURY912828XG0US GOV2.12506/30/202206/30/2022N---148,089.85150,000.00101.918002/13/201902/15/2019AaaAA+---148,619.27148,899.49280.224,257.73152,877.00153,157.22UNITED STATES TREASURY912828D72US GOV2.00008/31/202108/31/2021N---246,748.05250,000.00100.953102/13/201902/15/2019AaaAA+---247,954.66250,070.052,115.384,428.09252,382.75254,498.13Holdings Report Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/202013.A.3.aPacket Pg. 63Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Description,Identifier,Security Type,CouponEffective Maturity,Final Maturity,Callable,Next Call DateOriginal Cost,Current Units,Market PriceTrade Date,Settle DateMoodysRating,S&P Rating,Fitch RatingBook Value,Book Value + AccruedAccrued Balance,Net Unrealized Gain/LossMarket Value,Market Value + AccruedUNITED STATES TREASURY912828W55US GOV1.87502/28/202202/28/2022N---98,101.56100,000.00101.082002/13/201902/15/2019AaaAA+---98,686.1999,479.46793.272,395.81101,082.00101,875.27UNITED STATES TREASURY912828V72US GOV1.87501/31/202201/31/2022N---313,621.88315,000.00101.023405/29/201905/31/2019AaaAA+---313,964.07313,980.3016.234,259.64318,223.71318,239.94UNITED STATES TREASURY912828SF8US GOV2.00002/15/202202/15/2022N---314,778.52315,000.00101.324205/29/201905/31/2019AaaAA+---314,835.25317,745.582,910.334,335.98319,171.23322,081.56UNITED STATES TREASURY912828WG1US GOV2.25004/30/202104/30/2021N---315,922.85315,000.00100.957005/29/201905/31/2019AaaAA+---315,605.05317,415.871,810.822,409.50318,014.55319,825.37UNITED STATES TREASURY912828C57US GOV2.25003/31/202103/31/2021N---315,762.89315,000.00100.878905/29/201905/31/2019AaaAA+---315,489.01317,890.242,401.232,279.52317,768.53320,169.76UNITED STATES TREASURY912828L57US GOV1.75009/30/202209/30/2022N---374,765.63375,000.00101.140606/26/201906/27/2019AaaAA+---374,810.65377,034.012,223.364,466.60379,277.25381,500.61UNITED STATES TREASURY912828J76US GOV1.75003/31/202203/31/2022N---473,348.63475,000.00100.890607/09/201907/11/2019AaaAA+---473,685.81476,502.072,816.265,544.54479,230.35482,046.61UNITED STATES TREASURY912828L24US GOV1.87508/31/202208/31/2022N---100,953.13100,000.00101.414108/08/201908/09/2019AaaAA+---100,805.95101,599.22793.27608.15101,414.10102,207.37UNITED STATES TREASURY912828P38US GOV1.75001/31/202301/31/2023N---439,570.90435,000.00101.289108/26/201908/28/2019AaaAA+---439,014.96439,035.8820.911,592.62440,607.59440,628.50UNITED STATES TREASURY912828N30US GOV2.12512/31/202212/31/2022N---447,528.13440,000.00102.320309/10/201909/12/2019AaaAA+---446,668.91447,490.89821.983,540.41450,209.32451,031.30UNITED STATES TREASURY912828L24US GOV1.87508/31/202208/31/2022N---125,668.95125,000.00101.414109/17/201909/18/2019AaaAA+---125,586.32126,577.91991.591,181.30126,767.63127,759.21UNITED STATES TREASURY9128287C8US GOV1.75007/15/202207/15/2022N---370,925.00370,000.00101.027310/29/201910/30/2019AaaAA+---370,842.26371,144.66302.402,958.75373,801.01374,103.41UNITED STATES TREASURY912828Y87US GOV1.75007/31/202407/31/2024N---351,162.11350,000.00101.843812/06/201912/10/2019AaaAA+---351,129.89351,146.7216.835,323.41356,453.30356,470.13UNITED STATES TREASURY912828YE4US GOV1.25008/31/202408/31/2024N---294,257.81300,000.0099.675812/06/201912/10/2019AaaAA+---294,429.50296,016.041,586.544,597.90299,027.40300,613.94UNITED STATES TREASURY9128283J7US GOV2.12511/30/202411/30/2024N---306,281.25300,000.00103.703112/06/201912/10/2019AaaAA+---306,105.35307,202.691,097.345,003.95311,109.30312,206.64UNITED STATES TREASURY9128286Z8US GOV1.75006/30/202406/30/2024N---351,121.09350,000.00101.804712/06/201912/10/2019AaaAA+---351,087.90351,626.37538.465,228.55356,316.45356,854.91Holdings Report Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/202023.A.3.aPacket Pg. 64Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) * Filtered By: Description ¹ "Payable" and Description ¹ "Receivable". * Weighted by: Market Value + Accrued.Description,Identifier,Security Type,CouponEffective Maturity,Final Maturity,Callable,Next Call DateOriginal Cost,Current Units,Market PriceTrade Date,Settle DateMoodysRating,S&P Rating,Fitch RatingBook Value,Book Value + AccruedAccrued Balance,Net Unrealized Gain/LossMarket Value,Market Value + AccruedUNITED STATES TREASURY912828W71US GOV2.12503/31/202403/31/2024N---340,404.49335,000.00103.238312/12/201912/17/2019AaaAA+---340,252.99342,664.802,411.825,595.32345,848.30348,260.12UNITED STATES TREASURY912828T91US GOV1.62510/31/202310/31/2023N---333,835.35335,000.00101.144512/12/201912/17/2019AaaAA+---333,872.93335,263.781,390.854,961.14338,834.08340,224.92UNITED STATES TREASURY9128282D1US GOV1.37508/31/202308/31/2023N---331,034.96335,000.00100.230512/12/201912/17/2019AaaAA+---331,167.67333,116.471,948.804,604.51335,772.17337,720.97UNITED STATES TREASURY912828V80US GOV2.25001/31/202401/31/2024N---341,948.63335,000.00103.628912/12/201912/17/2019AaaAA+---341,747.92341,768.6320.715,408.89347,156.82347,177.52------------09/13/202209/17/2022------10,761,288.8010,740,698.19---------AaaAA+---10,768,811.5610,812,314.4943,502.92155,484.9210,924,296.4810,967,799.41Holdings Report Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/202033.A.3.aPacket Pg. 65Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Identifier,DescriptionFinal MaturityEnding Current UnitsEarned InterestIncomeRealized Gain,Realized LossAccretion IncomeAmortization ExpenseMisc IncomeNet Earned IncomeInterest PaymentReceived,Ending Interest Due9128283J7UNITED STATES TREASURY11/30/2024300,000.00539.960.000.000.00-102.880.00437.070.000.00912828YE4UNITED STATES TREASURY08/31/2024300,000.00319.370.000.00100.420.000.00419.790.000.00912828Y87UNITED STATES TREASURY07/31/2024350,000.00516.150.000.000.00-18.870.00497.283,062.500.009128286Z8UNITED STATES TREASURY06/30/2024350,000.00521.630.000.000.00-20.290.00501.340.000.00912828W71UNITED STATES TREASURY03/31/2024335,000.00602.950.000.000.00-102.100.00500.850.000.00912828V80UNITED STATES TREASURY01/31/2024335,000.00635.180.000.000.00-135.300.00499.873,768.750.00US3137BWWD24FHMS K725 A201/25/2024280,000.00700.470.000.000.00-190.400.00510.07700.470.00912828T91UNITED STATES TREASURY10/31/2023335,000.00463.620.000.0025.330.000.00488.940.000.009128282D1UNITED STATES TREASURY08/31/2023335,000.00392.290.000.0089.440.000.00481.730.000.003137B4WB8FHMS K033 A207/25/2023250,000.00637.500.000.000.00-209.950.00427.55637.500.00912828P38UNITED STATES TREASURY01/31/2023435,000.00641.500.000.000.00-109.830.00531.673,806.250.00037833DE7APPLE INC01/13/2023300,000.00600.000.000.000.00-116.060.00483.943,600.000.00912828N30UNITED STATES TREASURY12/31/2022440,000.00796.290.000.000.00-191.080.00605.210.000.00912828L57UNITED STATES TREASURY09/30/2022375,000.00555.840.000.005.880.000.00561.720.000.003137AXHP1FHMS K024 A209/25/2022320,000.00686.130.000.00-5.840.000.00680.29686.130.00912828L24UNITED STATES TREASURY08/31/2022100,000.00159.680.000.000.00-26.040.00133.640.000.00912828L24UNITED STATES TREASURY08/31/2022125,000.00199.600.000.000.00-18.830.00180.770.000.0030231GBB7EXXON MOBIL CORP08/16/202275,000.00118.880.000.000.000.000.00118.880.000.009128287C8UNITED STATES TREASURY07/15/2022370,000.00548.740.000.000.00-27.940.00520.793,237.500.00912828XG0UNITED STATES TREASURY06/30/2022150,000.00271.460.000.0047.490.000.00318.960.000.00912828J76UNITED STATES TREASURY03/31/2022475,000.00704.060.000.0050.400.000.00754.460.000.00912828W55UNITED STATES TREASURY02/28/2022100,000.00159.680.000.0052.260.000.00211.950.000.00912828SF8UNITED STATES TREASURY02/15/2022315,000.00530.710.000.006.640.000.00537.350.000.00912828V72UNITED STATES TREASURY01/31/2022315,000.00497.720.000.0042.620.000.00540.342,953.130.003135G0U92FEDERAL NATIONAL MORTGAGE ASSOCIATION01/11/2022130,000.00284.380.000.002.620.000.00286.991,706.250.009128285R7UNITED STATES TREASURY12/15/2021250,000.00555.840.000.000.00-19.230.00536.610.000.0002665WCP4AMERICAN HONDA FINANCE CORP12/10/2021175,000.00492.190.000.002.380.000.00494.570.000.00912828F21UNITED STATES TREASURY09/30/2021435,000.00782.940.000.00196.280.000.00979.230.000.00912828D72UNITED STATES TREASURY08/31/2021250,000.00425.820.000.00107.840.000.00533.670.000.00912828WY2UNITED STATES TREASURY07/31/2021440,000.00834.260.000.00100.090.000.00934.354,950.000.00Income Detail Report Trade DateSan Jacinto, City of (66779)01/01/2020 - 01/31/2020Return to Table of ContentsDated: 02/06/202043.A.3.aPacket Pg. 66Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) * Filtered By: Description ¹ "Payable" and Description ¹ "Receivable". * Weighted by: Ending Market Value + Accrued.Identifier,DescriptionFinal MaturityEnding Current UnitsEarned InterestIncomeRealized Gain,Realized LossAccretion IncomeAmortization ExpenseMisc IncomeNet Earned IncomeInterest PaymentReceived,Ending Interest Due912828Y20UNITED STATES TREASURY07/15/2021440,000.00978.830.000.0096.180.000.001,075.005,775.000.009128284P2UNITED STATES TREASURY05/15/2021330,000.00737.740.000.0038.830.000.00776.570.000.00912828WG1UNITED STATES TREASURY04/30/2021315,000.00603.610.000.000.00-40.890.00562.720.000.00912828C57UNITED STATES TREASURY03/31/2021315,000.00600.310.000.000.00-35.190.00565.120.000.003137EAEL9FEDERAL HOME LOAN MORTGAGE CORP02/16/2021525,000.001,039.060.000.0095.290.000.001,134.350.000.0031846V203FIRST AMER:GVT OBLG Y01/31/202070,698.1945.420.000.000.000.000.0045.420.0045.42------09/17/202210,740,698.1919,179.800.000.001,054.16-1,364.900.0018,869.0734,883.4845.42Income Detail Report Trade DateSan Jacinto, City of (66779)01/01/2020 - 01/31/2020Return to Table of ContentsDated: 02/06/202053.A.3.aPacket Pg. 67Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) * Does not Lock Down. * Filtered By: Type = Buy or Type = Sell or Type = Call Redemption or Type = Put Redemption or Type = Corporate Action Sell or Type = Cash Transfer or Type = Maturity or Type = Coupon or Type = Principal Paydown or Type = Money Market Funds. * Weighted by: AbsoluteValue of Principal. * MMF transactions are expanded. * The Transaction Detail/Trading Activity reports provide our most up-to-date transactional details. As such, these reports are subject to change even after the other reports on the website have been locked down. While these reports can be useful tools in understanding recent activity,due to their dynamic nature we do not recommend using them for booking journal entries or reconciliation.IdentifierDescriptionCurrent UnitsTypeSettle DatePricePrincipalRealized Gain/LossAmount3137AXHP1FHMS K024 A20.00Coupon01/01/2020---0.000.00686.133137B4WB8FHMS K033 A20.00Coupon01/01/2020---0.000.00637.50US3137BWWD24FHMS K725 A20.00Coupon01/01/2020---0.000.00700.4731846V203FIRST AMER:GVT OBLG Y136.75Buy01/03/20201.000136.750.00-136.753135G0U92FEDERAL NATIONAL MORTGAGEASSOCIATION0.00Coupon01/11/2020---0.000.001,706.2531846V203FIRST AMER:GVT OBLG Y5,306.25Buy01/13/20201.0005,306.250.00-5,306.25037833DE7APPLE INC0.00Coupon01/13/2020---0.000.003,600.0031846V203FIRST AMER:GVT OBLG Y9,012.50Buy01/15/20201.0009,012.500.00-9,012.50912828Y20UNITED STATES TREASURY0.00Coupon01/15/2020---0.000.005,775.009128287C8UNITED STATES TREASURY0.00Coupon01/15/2020---0.000.003,237.50CCYUSDUS DOLLAR0.00Cash Transfer01/27/2020---0.000.00-104.1731846V203FIRST AMER:GVT OBLG Y1,233.80Buy01/27/20201.0001,233.800.00-1,233.8031846V203FIRST AMER:GVT OBLG Y686.13Buy01/27/20201.000686.130.00-686.1331846V203FIRST AMER:GVT OBLG Y18,540.63Buy01/31/20201.00018,540.630.00-18,540.6331846V203FIRST AMER:GVT OBLG Y0.00Money Market Funds01/31/2020---0.000.0045.42912828WY2UNITED STATES TREASURY0.00Coupon01/31/2020---0.000.004,950.00912828P38UNITED STATES TREASURY0.00Coupon01/31/2020---0.000.003,806.25912828V80UNITED STATES TREASURY0.00Coupon01/31/2020---0.000.003,768.75912828V72UNITED STATES TREASURY0.00Coupon01/31/2020---0.000.002,953.13912828Y87UNITED STATES TREASURY0.00Coupon01/31/2020---0.000.003,062.50------34,916.06---------34,916.060.00-91.33Transactions Realized Gain Loss ReportSan Jacinto, City of (66779)01/01/2020 - 01/31/2020Return to Table of ContentsDated: 02/06/202063.A.3.aPacket Pg. 68Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Apple Inc.Exxon Mobil CorporationFederal National Mortgage AssociationIdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue037833DE7CORPAPPLE INCApple Inc.300,000.00FixedY2.7621.9111.50212/13/202201/13/2023360.00304,071.21304,431.21307,532.12307,892.122.815%037833DE7CORPAPPLE INCApple Inc.300,000.00FixedY2.7621.9111.50212/13/202201/13/2023360.00304,071.21304,431.21307,532.12307,892.122.815%IdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue30231GBB7CORPEXXON MOBIL CORPExxon Mobil Corporation75,000.00FixedN2.4551.9021.45308/16/202208/16/2022653.8175,000.0075,653.8175,837.8676,491.670.694%30231GBB7CORPEXXON MOBIL CORPExxon Mobil Corporation75,000.00FixedN2.4551.9021.45308/16/202208/16/2022653.8175,000.0075,653.8175,837.8676,491.670.694%IdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue3135G0U92AGCY BONDFEDERAL NATIONAL MORTGAGEASSOCIATIONFederal National Mortgage Association130,000.00FixedN1.8932.6501.38201/11/202201/11/2022189.58129,938.57130,128.15133,090.10133,279.691.218%Issuer Concentration with Yield GASB 40 Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/202073.A.3.aPacket Pg. 69Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Freddie MacHonda Motor Co., Ltd.U.S. BancorpUnited StatesIdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue3135G0U92AGCY BONDFEDERAL NATIONAL MORTGAGEASSOCIATIONFederal National Mortgage Association130,000.00FixedN1.8932.6501.38201/11/202201/11/2022189.58129,938.57130,128.15133,090.10133,279.691.218%IdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue3137AXHP1FHLMC CMOFHMS K024 A2Freddie Mac320,000.00FixedY2.4552.5631.62008/20/202209/25/2022686.13319,636.90320,323.03327,096.32327,782.452.994%3137B4WB8FHLMCFHMS K033 A2Freddie Mac250,000.00VariableY3.1731.9891.64906/09/202307/25/2023637.50258,237.69258,875.19261,028.20261,665.702.389%US3137BWWD24FHLMCFHMS K725 A2Freddie Mac280,000.00VariableY3.6612.1241.69012/26/202301/25/2024700.47288,734.04289,434.51293,340.24294,040.702.685%3137EAEL9AGCY BONDFEDERAL HOME LOAN MORTGAGECORPFreddie Mac525,000.00FixedN1.0172.5991.47902/16/202102/16/20215,714.84523,800.58529,515.42529,844.85535,559.704.850%---------Freddie Mac1,375,000.00------2.2942.3801.58706/30/202207/23/20227,738.941,390,409.211,398,148.161,411,309.611,419,048.5512.919%IdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue02665WCP4CORPAMERICAN HONDA FINANCE CORPHonda Motor Co., Ltd.175,000.00FixedN1.7953.3921.64312/10/202112/10/2021836.72174,946.45175,783.17180,521.64181,358.361.652%02665WCP4CORPAMERICAN HONDA FINANCE CORPHonda Motor Co., Ltd.175,000.00FixedN1.7953.3921.64312/10/202112/10/2021836.72174,946.45175,783.17180,521.64181,358.361.652%IdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue31846V203MMFUNDFIRST AMER:GVT OBLG YU.S. Bancorp70,698.19FixedN0.0001.1801.18001/31/202001/31/20200.0070,698.1970,698.1970,698.1970,698.190.647%31846V203MMFUNDFIRST AMER:GVT OBLG YU.S. Bancorp70,698.19FixedN0.0001.1801.18001/31/202001/31/20200.0070,698.1970,698.1970,698.1970,698.190.647%IdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue9128284P2US GOVUNITED STATES TREASURYUnited States330,000.00FixedN1.2602.7691.45105/15/202105/15/20211,856.25329,404.22331,260.47334,924.26336,780.513.066%912828Y20US GOVUNITED STATES TREASURYUnited States440,000.00FixedN1.4272.8961.42507/15/202107/15/2021539.42438,315.15438,854.58447,579.88448,119.304.097%912828F21US GOVUNITED STATES TREASURYUnited States435,000.00FixedN1.6222.6871.38809/30/202109/30/20213,131.76431,056.04434,187.81440,250.45443,382.214.030%912828WY2US GOVUNITED STATES TREASURYUnited States440,000.00FixedN1.4732.5341.42107/31/202107/31/202127.20438,176.89438,204.08445,397.04445,424.244.077%Issuer Concentration with Yield GASB 40 Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/202083.A.3.aPacket Pg. 70Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) SummaryIdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue9128285R7US GOVUNITED STATES TREASURYUnited States250,000.00FixedN1.8212.5291.36312/15/202112/15/2021860.66250,433.09251,293.75255,810.50256,671.162.342%912828XG0US GOVUNITED STATES TREASURYUnited States150,000.00FixedN2.3482.5211.31506/30/202206/30/2022280.22148,619.27148,899.49152,877.00153,157.221.399%912828D72US GOVUNITED STATES TREASURYUnited States250,000.00FixedN1.5402.5331.38808/31/202108/31/20212,115.38247,954.66250,070.05252,382.75254,498.132.310%912828W55US GOVUNITED STATES TREASURYUnited States100,000.00FixedN2.0202.5281.34502/28/202202/28/2022793.2798,686.1999,479.46101,082.00101,875.270.925%912828V72US GOVUNITED STATES TREASURYUnited States315,000.00FixedN1.9592.0441.35501/31/202201/31/202216.23313,964.07313,980.30318,223.71318,239.942.913%912828SF8US GOVUNITED STATES TREASURYUnited States315,000.00FixedN1.9792.0261.34002/15/202202/15/20222,910.33314,835.25317,745.58319,171.23322,081.562.922%912828WG1US GOVUNITED STATES TREASURYUnited States315,000.00FixedN1.2222.0931.47204/30/202104/30/20211,810.82315,605.05317,415.87318,014.55319,825.372.911%912828C57US GOVUNITED STATES TREASURYUnited States315,000.00FixedN1.1392.1141.48503/31/202103/31/20212,401.23315,489.01317,890.24317,768.53320,169.762.909%912828L57US GOVUNITED STATES TREASURYUnited States375,000.00FixedN2.5831.7701.31309/30/202209/30/20222,223.36374,810.65377,034.01379,277.25381,500.613.472%912828J76US GOVUNITED STATES TREASURYUnited States475,000.00FixedN2.1071.8811.33103/31/202203/31/20222,816.26473,685.81476,502.07479,230.35482,046.614.387%912828L24US GOVUNITED STATES TREASURYUnited States100,000.00FixedN2.4951.5551.31608/31/202208/31/2022793.27100,805.95101,599.22101,414.10102,207.370.928%912828P38US GOVUNITED STATES TREASURYUnited States435,000.00FixedN2.9171.4341.31001/31/202301/31/202320.91439,014.96439,035.88440,607.59440,628.504.033%912828N30US GOVUNITED STATES TREASURYUnited States440,000.00FixedN2.8201.5901.31112/31/202212/31/2022821.98446,668.91447,490.89450,209.32451,031.304.121%912828L24US GOVUNITED STATES TREASURYUnited States125,000.00FixedN2.4951.6881.31608/31/202208/31/2022991.59125,586.32126,577.91126,767.63127,759.211.160%9128287C8US GOVUNITED STATES TREASURYUnited States370,000.00FixedN2.3971.6551.32307/15/202207/15/2022302.40370,842.26371,144.66373,801.01374,103.413.422%912828Y87US GOVUNITED STATES TREASURYUnited States350,000.00FixedN4.3201.6751.32707/31/202407/31/202416.83351,129.89351,146.72356,453.30356,470.133.263%912828YE4US GOVUNITED STATES TREASURYUnited States300,000.00FixedN4.4131.6731.32308/31/202408/31/20241,586.54294,429.50296,016.04299,027.40300,613.942.737%9128283J7US GOVUNITED STATES TREASURYUnited States300,000.00FixedN4.5751.6841.33111/30/202411/30/20241,097.34306,105.35307,202.69311,109.30312,206.642.848%9128286Z8US GOVUNITED STATES TREASURYUnited States350,000.00FixedN4.2351.6771.32806/30/202406/30/2024538.46351,087.90351,626.37356,316.45356,854.913.262%912828W71US GOVUNITED STATES TREASURYUnited States335,000.00FixedN3.9571.7331.32303/31/202403/31/20242,411.82340,252.99342,664.80345,848.30348,260.123.166%912828T91US GOVUNITED STATES TREASURYUnited States335,000.00FixedN3.6131.7181.31110/31/202310/31/20231,390.85333,872.93335,263.78338,834.08340,224.923.102%9128282D1US GOVUNITED STATES TREASURYUnited States335,000.00FixedN3.4631.7061.30908/31/202308/31/20231,948.80331,167.67333,116.47335,772.17337,720.973.074%912828V80US GOVUNITED STATES TREASURYUnited States335,000.00FixedN3.8261.7261.31601/31/202401/31/202420.71341,747.92341,768.63347,156.82347,177.523.178%---US GOVUNITED STATES TREASURYUnited States8,615,000.00FixedN2.5992.0091.35510/10/202210/10/202233,723.868,623,747.938,657,471.798,745,306.968,779,030.8380.054%IdentifierSecurity TypeDescription,Issuer ConcentrationEnding Current UnitsCoupon TypeCallableDurationBookYieldYieldEndingEffectiveMaturity,Final MaturityEnding AccruedBalanceEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued% of MarketValue------------10,740,698.19------2.5252.0781.39409/13/202209/17/202243,502.9210,768,811.5610,812,314.4910,924,296.4810,967,799.41100.000%Issuer Concentration with Yield GASB 40 Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/202093.A.3.aPacket Pg. 71Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) * Grouped by: Issuer Concentration. * Groups Sorted by: Issuer Concentration. * Filtered By: Description ¹ "Payable" and Description ¹ "Receivable". * Weighted by: Ending Market Value + Accrued, except Book Yield by Base Book Value + Accrued.Issuer Concentration with Yield GASB 40 Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/2020103.A.3.aPacket Pg. 72Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) AGCY BONDCORPIdentifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued3137EAEL9FEDERAL HOME LOAN MORTGAGE CORPAGCY BOND4.883%FixedN1.017AA+Aaa525,000.0002/16/202102/16/20212.5991.4795,714.84521,808.00523,800.58529,515.42529,844.85535,559.703135G0U92FEDERAL NATIONAL MORTGAGEASSOCIATIONAGCY BOND1.215%FixedN1.893AA+Aaa130,000.0001/11/202201/11/20222.6501.382189.58129,906.40129,938.57130,128.15133,090.10133,279.69------AGCY BOND6.098%FixedN1.191AA+Aaa655,000.0004/23/202104/23/20212.6091.4595,904.43651,714.40653,739.15659,643.58662,934.96668,839.38Identifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued02665WCP4AMERICAN HONDA FINANCE CORPCORP1.654%FixedN1.795AA2175,000.0012/10/202112/10/20213.3921.643836.72174,916.00174,946.45175,783.17180,521.64181,358.3630231GBB7EXXON MOBIL CORPCORP0.697%FixedN2.455AA+Aaa75,000.0008/16/202208/16/20221.9021.453653.8175,000.0075,000.0075,653.8175,837.8676,491.67037833DE7APPLE INCCORP2.807%FixedY2.762AA+Aa1300,000.0012/13/202201/13/20231.9111.502360.00304,260.00304,071.21304,431.21307,532.12307,892.12Security Type GASB 40 Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/2020113.A.3.aPacket Pg. 73Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) FHLMCFHLMC CMOMMFUNDUS GOVIdentifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued------CORP5.158%Fixed---2.411AA-Aa3550,000.0008/01/202208/18/20222.3781.5411,850.53554,176.00554,017.66555,868.19563,891.62565,742.15Identifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued3137B4WB8FHMS K033 A2FHLMC2.386%VariableY3.173AA+Aaa250,000.0006/09/202307/25/20231.9891.649637.50258,544.92258,237.69258,875.19261,028.20261,665.70US3137BWWD24FHMS K725 A2FHLMC2.681%VariableY3.661AAAAaa280,000.0012/26/202301/25/20242.1241.690700.47289,012.50288,734.04289,434.51293,340.24294,040.70------FHLMC5.067%VariableY3.431AAAAaa530,000.0009/23/202310/30/20232.0601.6711,337.97547,557.42546,971.73548,309.70554,368.44555,706.40Identifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued3137AXHP1FHMS K024 A2FHLMC CMO2.989%FixedY2.455AA+Aaa320,000.0008/20/202209/25/20222.5631.620686.13319,687.50319,636.90320,323.03327,096.32327,782.453137AXHP1FHMS K024 A2FHLMC CMO2.989%FixedY2.455AA+Aaa320,000.0008/20/202209/25/20222.5631.620686.13319,687.50319,636.90320,323.03327,096.32327,782.45Identifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued31846V203FIRST AMER:GVT OBLG YMMFUND0.645%FixedN0.000AAAmAaa70,698.1901/31/202001/31/20201.1801.1800.0070,698.1970,698.1970,698.1970,698.1970,698.1931846V203FIRST AMER:GVT OBLG YMMFUND0.645%FixedN0.000AAAmAaa70,698.1901/31/202001/31/20201.1801.1800.0070,698.1970,698.1970,698.1970,698.1970,698.19Identifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued912828C57UNITED STATES TREASURYUS GOV2.919%FixedN1.139AA+Aaa315,000.0003/31/202103/31/20212.1141.4852,401.23315,762.89315,489.01317,890.24317,768.53320,169.76912828WG1UNITED STATES TREASURYUS GOV2.916%FixedN1.222AA+Aaa315,000.0004/30/202104/30/20212.0931.4721,810.82315,922.85315,605.05317,415.87318,014.55319,825.379128284P2UNITED STATES TREASURYUS GOV3.071%FixedN1.260AA+Aaa330,000.0005/15/202105/15/20212.7691.4511,856.25328,723.83329,404.22331,260.47334,924.26336,780.51Security Type GASB 40 Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/2020123.A.3.aPacket Pg. 74Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Identifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued912828Y20UNITED STATES TREASURYUS GOV4.086%FixedN1.427AA+Aaa440,000.0007/15/202107/15/20212.8961.425539.42436,803.13438,315.15438,854.58447,579.88448,119.30912828WY2UNITED STATES TREASURYUS GOV4.061%FixedN1.473AA+Aaa440,000.0007/31/202107/31/20212.5341.42127.20436,940.63438,176.89438,204.08445,397.04445,424.24912828D72UNITED STATES TREASURYUS GOV2.320%FixedN1.540AA+Aaa250,000.0008/31/202108/31/20212.5331.3882,115.38246,748.05247,954.66250,070.05252,382.75254,498.13912828F21UNITED STATES TREASURYUS GOV4.043%FixedN1.622AA+Aaa435,000.0009/30/202109/30/20212.6871.3883,131.76428,491.99431,056.04434,187.81440,250.45443,382.219128285R7UNITED STATES TREASURYUS GOV2.340%FixedN1.821AA+Aaa250,000.0012/15/202112/15/20212.5291.363860.66250,664.06250,433.09251,293.75255,810.50256,671.16912828V72UNITED STATES TREASURYUS GOV2.902%FixedN1.959AA+Aaa315,000.0001/31/202201/31/20222.0441.35516.23313,621.88313,964.07313,980.30318,223.71318,239.94912828SF8UNITED STATES TREASURYUS GOV2.937%FixedN1.979AA+Aaa315,000.0002/15/202202/15/20222.0261.3402,910.33314,778.52314,835.25317,745.58319,171.23322,081.56912828W55UNITED STATES TREASURYUS GOV0.929%FixedN2.020AA+Aaa100,000.0002/28/202202/28/20222.5281.345793.2798,101.5698,686.1999,479.46101,082.00101,875.27912828J76UNITED STATES TREASURYUS GOV4.395%FixedN2.107AA+Aaa475,000.0003/31/202203/31/20221.8811.3312,816.26473,348.63473,685.81476,502.07479,230.35482,046.61912828XG0UNITED STATES TREASURYUS GOV1.396%FixedN2.348AA+Aaa150,000.0006/30/202206/30/20222.5211.315280.22148,089.85148,619.27148,899.49152,877.00153,157.229128287C8UNITED STATES TREASURYUS GOV3.411%FixedN2.397AA+Aaa370,000.0007/15/202207/15/20221.6551.323302.40370,925.00370,842.26371,144.66373,801.01374,103.41912828L24UNITED STATES TREASURYUS GOV0.932%FixedN2.495AA+Aaa100,000.0008/31/202208/31/20221.5551.316793.27100,953.13100,805.95101,599.22101,414.10102,207.37912828L24UNITED STATES TREASURYUS GOV1.165%FixedN2.495AA+Aaa125,000.0008/31/202208/31/20221.6881.316991.59125,668.95125,586.32126,577.91126,767.63127,759.21912828L57UNITED STATES TREASURYUS GOV3.478%FixedN2.583AA+Aaa375,000.0009/30/202209/30/20221.7701.3132,223.36374,765.63374,810.65377,034.01379,277.25381,500.61912828N30UNITED STATES TREASURYUS GOV4.112%FixedN2.820AA+Aaa440,000.0012/31/202212/31/20221.5901.311821.98447,528.13446,668.91447,490.89450,209.32451,031.30912828P38UNITED STATES TREASURYUS GOV4.017%FixedN2.917AA+Aaa435,000.0001/31/202301/31/20231.4341.31020.91439,570.90439,014.96439,035.88440,607.59440,628.509128282D1UNITED STATES TREASURYUS GOV3.079%FixedN3.463AA+Aaa335,000.0008/31/202308/31/20231.7061.3091,948.80331,034.96331,167.67333,116.47335,772.17337,720.97912828T91UNITED STATES TREASURYUS GOV3.102%FixedN3.613AA+Aaa335,000.0010/31/202310/31/20231.7181.3111,390.85333,835.35333,872.93335,263.78338,834.08340,224.92912828V80UNITED STATES TREASURYUS GOV3.165%FixedN3.826AA+Aaa335,000.0001/31/202401/31/20241.7261.31620.71341,948.63341,747.92341,768.63347,156.82347,177.52912828W71UNITED STATES TREASURYUS GOV3.175%FixedN3.957AA+Aaa335,000.0003/31/202403/31/20241.7331.3232,411.82340,404.49340,252.99342,664.80345,848.30348,260.129128286Z8UNITED STATES TREASURYUS GOV3.254%FixedN4.235AA+Aaa350,000.0006/30/202406/30/20241.6771.328538.46351,121.09351,087.90351,626.37356,316.45356,854.91Security Type GASB 40 Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/2020133.A.3.aPacket Pg. 75Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Summary * Grouped by: Security Type. * Groups Sorted by: Security Type. * Filtered By: Description ¹ "Payable" and Description ¹ "Receivable". * Weighted by: Ending Market Value + Accrued, except Book Yield by Base Book Value + Accrued.Identifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued912828Y87UNITED STATES TREASURYUS GOV3.250%FixedN4.320AA+Aaa350,000.0007/31/202407/31/20241.6751.32716.83351,162.11351,129.89351,146.72356,453.30356,470.13912828YE4UNITED STATES TREASURYUS GOV2.741%FixedN4.413AA+Aaa300,000.0008/31/202408/31/20241.6731.3231,586.54294,257.81294,429.50296,016.04299,027.40300,613.949128283J7UNITED STATES TREASURYUS GOV2.847%FixedN4.575AA+Aaa300,000.0011/30/202411/30/20241.6841.3311,097.34306,281.25306,105.35307,202.69311,109.30312,206.64---UNITED STATES TREASURYUS GOV80.044%FixedN2.599AA+Aaa8,615,000.0010/10/202210/10/20222.0091.35533,723.868,617,455.308,623,747.938,657,471.798,745,306.968,779,030.83Identifier,Description,Security Type% of MarketValue +AccruedCoupon TypeCallableDurationS&PRating,Moody'sRatingEnding Current UnitsEndingEffectiveMaturity,Final MaturityBookYield,YieldEnding AccruedBalanceOriginal CostEnding Book Value,Book Value + AccruedMarket Value,Ending Market Value +Accrued---------100.000%------2.525AA+Aaa10,740,698.1909/13/202209/17/20222.0781.39443,502.9210,761,288.8010,768,811.5610,812,314.4910,924,296.4810,967,799.41Security Type GASB 40 Trade DateSan Jacinto, City of (66779)As of 01/31/2020Return to Table of ContentsDated: 02/06/2020143.A.3.aPacket Pg. 76Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Identifier,Description,Security TypeInterest/DividendReceivedTransfers In/OutPurchasesPurchasedAccruedIncomeSalesDisposed AccruedMaturities andRedemptionsPaydownsNet RealizedGain/LossBeginning OriginalCost,Ending Original CostBeginning MarketValue,Ending Market Value31846V203FIRST AMER:GVT OBLG YMMFUND0.000.0034,916.060.000.000.000.000.000.0035,782.1370,698.1935,782.1370,698.19CCYUSDReceivableCASH0.000.000.000.000.000.000.000.000.000.0045.420.0045.42CCYUSDCashCASH0.00-104.170.000.000.000.000.000.000.00136.750.00136.750.003137EAEL9FEDERAL HOME LOAN MORTGAGECORPAGCY BOND0.000.000.000.000.000.000.000.000.00521,808.00521,808.00529,500.66529,844.859128284P2UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00328,723.83328,723.83334,537.50334,924.26912828Y20UNITED STATES TREASURYUS GOV5,775.000.000.000.000.000.000.000.000.00436,803.13436,803.13446,840.68447,579.8802665WCP4AMERICAN HONDA FINANCE CORPCORP0.000.000.000.000.000.000.000.000.00174,916.00174,916.00180,148.74180,521.64912828F21UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00428,491.99428,491.99438,891.08440,250.453135G0U92FEDERAL NATIONAL MORTGAGEASSOCIATIONAGCY BOND1,706.250.000.000.000.000.000.000.000.00129,906.40129,906.40132,630.47133,090.10912828WY2UNITED STATES TREASURYUS GOV4,950.000.000.000.000.000.000.000.000.00436,940.63436,940.63444,434.32445,397.049128285R7UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00250,664.06250,664.06254,961.00255,810.50912828XG0UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00148,089.85148,089.85151,980.45152,877.00912828D72UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00246,748.05246,748.05251,650.50252,382.75912828W55UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.0098,101.5698,101.56100,613.30101,082.003137AXHP1FHMS K024 A2FHLMC CMO686.130.000.000.000.000.000.000.000.00319,687.50319,687.50324,816.93327,096.32912828V72UNITED STATES TREASURYUS GOV2,953.130.000.000.000.000.000.000.000.00313,621.88313,621.88316,845.59318,223.71912828SF8UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00314,778.52314,778.52317,682.54319,171.23912828WG1UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00315,922.85315,922.85317,657.97318,014.55912828C57UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00315,762.89315,762.89317,399.35317,768.53912828L57UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00374,765.63374,765.63376,508.63379,277.25912828J76UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00473,348.63473,348.63476,781.25479,230.35Portfolio Activity SummarySan Jacinto, City of (66779)01/01/2020 - 01/31/2020Return to Table of ContentsDated: 02/06/2020153.A.3.aPacket Pg. 77Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) * Weighted by: Ending Market Value + Accrued. * Holdings Displayed by: Lot.Identifier,Description,Security TypeInterest/DividendReceivedTransfers In/OutPurchasesPurchasedAccruedIncomeSalesDisposed AccruedMaturities andRedemptionsPaydownsNet RealizedGain/LossBeginning OriginalCost,Ending Original CostBeginning MarketValue,Ending Market Value912828L24UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00100,953.13100,953.13100,734.40101,414.1030231GBB7EXXON MOBIL CORPCORP0.000.000.000.000.000.000.000.000.0075,000.0075,000.0075,413.9975,837.86912828P38UNITED STATES TREASURYUS GOV3,806.250.000.000.000.000.000.000.000.00439,570.90439,570.90436,801.34440,607.59912828N30UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00447,528.13447,528.13446,702.96450,209.32912828L24UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00125,668.95125,668.95125,918.00126,767.639128287C8UNITED STATES TREASURYUS GOV3,237.500.000.000.000.000.000.000.000.00370,925.00370,925.00371,430.79373,801.01912828Y87UNITED STATES TREASURYUS GOV3,062.500.000.000.000.000.000.000.000.00351,162.11351,162.11351,121.05356,453.30912828YE4UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00294,257.81294,257.81294,269.40299,027.409128283J7UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00306,281.25306,281.25306,129.00311,109.309128286Z8UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00351,121.09351,121.09351,107.40356,316.45037833DE7APPLE INCCORP3,600.000.000.000.000.000.000.000.000.00304,260.00304,260.00304,982.62307,532.12912828W71UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00340,404.49340,404.49341,228.99345,848.303137B4WB8FHMS K033 A2FHLMC637.500.000.000.000.000.000.000.000.00258,544.92258,544.92258,267.58261,028.20912828T91UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00333,835.35333,835.35334,699.17338,834.089128282D1UNITED STATES TREASURYUS GOV0.000.000.000.000.000.000.000.000.00331,034.96331,034.96331,911.64335,772.17US3137BWWD24FHMS K725 A2FHLMC700.470.000.000.000.000.000.000.000.00289,012.50289,012.50289,183.94293,340.24912828V80UNITED STATES TREASURYUS GOV3,768.750.000.000.000.000.000.000.000.00341,948.63341,948.63342,759.94347,156.82---------34,883.48-104.1734,916.060.000.000.000.000.000.0010,726,509.4910,761,334.2210,812,462.0210,924,341.90Portfolio Activity SummarySan Jacinto, City of (66779)01/01/2020 - 01/31/2020Return to Table of ContentsDated: 02/06/2020163.A.3.aPacket Pg. 78Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) Additional Disclosure:This information is for the sole purposes of the client and is not intended to provide specific advice or recommendations. Please review the contents of this information carefully. Should you have any questions regarding theinformation presented, calculation methodology, investment portfolio, security detail, or any other facet of this information, please feel free to contact us.Public Trust Advisors, LLC (Public Trust) statements and reports are intended to detail our investment advisory activity as well as the activity of certain client accounts managed by Public Trust. The custodian bank maintainsthe control of assets and executes and settles all investment transactions. The custodian statement is the official record of security and cash holdings transactions. Public Trust recognizes that clients may use these reports tofacilitate record keeping; therefore, it is recommended that the client reconcile this information with their custodian bank statement. Many custodians use a settlement date basis that may result in the need to reconcile due to atiming difference. The underlying market value, amortized cost, and accrued interest may differ between the custodian and this statement or report. This can be attributed to differences in calculation methodologies and pricingsources used.Public Trust does not have the authority to withdraw funds from or deposit funds to the custodian. Our clients retain responsibility for their internal accounting policies, implementing and enforcing internal controls, andgenerating ledger entries or otherwise recording transactions. The total market value represents prices obtained from various sources; it may be impacted by the frequency at which prices are reported, and such prices are notguaranteed. Prices received from pricing vendors are generally based on current market quotes but when such quotes are not available, the pricing vendors use a variety of techniques to estimate value. These estimates,particularly for fixed-income securities, may be based on certain minimum principal amounts (e.g. $1 million) and may not reflect all the factors that affect the value of the security including liquidity risk. The prices provided arenot firm bids or offers. Certain securities may reflect N/A or unavailable where the price for such security is generally not available from a pricing source. The market value of a security, including those priced at par value, maydiffer from its purchase price and may not closely reflect the value at which the security may be sold or purchased based on various market factors. The securities in this investment portfolio, including shares of mutual funds,are not guaranteed or otherwise protected by Public Trust, the FDIC (except for certain non-negotiable certificates of deposit), or any government agency unless specifically stated otherwise.Clients may be permitted to establish one or more unmanaged accounts for the purposes of client reporting. Clients may also be permitted to provide externally managed assets for the purposes of client reporting. Public Trustdefines unmanaged accounts or assets as one where the investment direction remains the sole responsibility of the client rather than the Investment Manager. Unmanaged accounts or external assets do not receive ongoingsupervision and monitoring services. The Investment Manager does not make any investment recommendations and may not charge a fee for reporting on these accounts or assets. The primary purpose for this service is toinclude unmanaged accounts or assets owned by the client in the performance reports provided by the Investment Manager. The Investment Manager assumes no liability for the underlying performance of any unmanagedaccounts or assets, and it is the client’s sole responsibility for the accuracy or correctness of any such performance.Beginning and ending balances are based on market value plus accrued interest on a trade date basis. Statements and reports made available to the end user either from Public Trust or through the online reporting platformmay present information and portfolio analytics using various optional methods including, but not limited to, historical cost, amortized cost, and market value. All information is assumed to be correct, but the accuracy has notbeen confirmed and therefore is not guaranteed to be correct. Information is obtained from third party sources that may or may not be verified. The data in this report is unaudited and is only applicable for the date denoted onthe report. Market values may change day-to-day based on numerous circumstances such as trading volume, news released about the underlying issuer, issuer performance, etc. Underlying market values may be priced vianumerous aspects as certain securities are short term in nature and not readily traded. Performance results are shown net of all fees and expenses and reflect the reinvestment of dividends and other earnings.Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Investment involves risk including the possible loss ofprincipal. No assurance can be given that the performance objectives of a given strategy will be achieved. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses.The investment advisor providing these services is Public Trust Advisors, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940, asamended. Registration with the SEC does not imply a certain level of skill or training. Public Trust is required to maintain a written disclosure brochure of our background and business experience. If you would like to receive acopy of our current disclosure brochure, Privacy Policy, or Code of Ethics, or have any questions regarding your account please contact us.Public Trust Advisors717 17th St. Suite 1850Denver, CO 802023.A.3.aPacket Pg. 79Attachment: 2019-20 January Treasurer's Report (Treasurer’s Report at January 31, 2020) March 3, 2020 TO: City Council REQUESTED BY: Travis Randel, Community Development Director APPROVED BY: Robert A. Johnson, City Manager SUBJECT: Local Early Action Planning Grants Program Application Authorization RECOMMENDATION: That the City Council ADOPT: 1. Resolution No. 3791 thereby authorizing application for, and receipt of, Local Government Planning Support Grant Program funds from the Department of Housing and Community Development for a reimbursable grant of $150,000; 2. Authorize the City Manager to execute the Standard Agreement pursuant to the NOFA. DISCUSSION: On May 7, 2019, the City Council adopted Resolution No. 3761 authorizing the City to submit a grant application under the SB 2 Planning Grants from the California Department of Housing and Community Development (HCD). The grant is non-competitive, meaning that it is provided over-the-counter to any jurisdiction meeting specific qualifications. The grant funds can only be utilized for specific activities for the “preparation, adoption and implementation of plans that streamline housing approvals and accelerate housing production.” In September 2019, the City was awarded $160,000, which is the maximum grant amount for a city of less than 60,000 people. The funds are part of the PermitsPlus Replacement Project, a component of the Envision San Jacinto program. Envision San Jacinto is a multi-faceted program designed to improve the quality of life for the citizens of San Jacinto by identifying and capitalizing on its strengths and opportunities, while taking proactive steps to address its weaknesses and possible threats. The PermitsPlus Replacement Project is intended to update and modernize the City’s permit tracking and entitlement system by providing better customer service, stronger development opportunities, greater transparency, and making government more accessible to our citizens. Since the award of the Grant, City staff have been working on preparing the RFP and Scope of Work for the project. While staff anticipates that the original $160,000 grant would cover a bulk of the off-the-shelf product, it would not provide for much customization or implementation assistance. In addition, it is anticipated that a number of “optional” tasks would initially remain unfunded. On January 27, 2020, HCD released a Notice of Funding Availability (NOFA) for a new grant program, Local Early Action Planning (LEAP) Grants, which provide cities additional funding opportunities for programs that: 3.A.4 Packet Pg. 80 1. Accelerate housing production 2. Facilitate compliance to implement the sixth-cycle Regional Housing Needs Assessment. The PermitsPlus Replacement Program qualifies for this grant by providing process improvements that help with planning and facilitating the streamlining and acceleration of housing production. The grant would provide up to an addition $150,000 filling the anticipated funding gap from the SB2 Grant. The action requested by the City Council is to authorize City Staff to submit a complete application for funding to HCD, and to authorize the City Manager to execute the Standard Agreement upon award of said grant. If approved, staff will return with the RFP Contract Award request for a supplemental appropriation to the PermitsPlus Replacement Program for the actual project costs. FISCAL IMPACT: There is no fiscal impact for authorizing the City Manager to submit the LEAP Grant program application. Prior to execution of the RFP bid award contract, staff will request a supplemental funding appropriation for the total project costs. ATTACHMENTS: Resolution 3791 Notice of Funding Availability - January 27, 2020 3.A.4 Packet Pg. 81 STATE OF CALIFORNIA ) RESOLUTION NO. 3791 COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA AUTHORIZING APPLICATION FOR, AND RECEIPT OF, LOCAL GOVERNMENT PLANNING SUPPORT GRANT PROGRAM FUNDS WHEREAS, pursuant to Health and Safety Code 50515 et. Seq, the Department of Housing and Community Development (Department) is authorized to issue a Notice of Funding Availability (NOFA) as part of the Local Government Planning Support Grant s Program (hereinafter referred to by the Department as the Local Early Action Planning Grants program or LEAP); and WHEREAS, the City Council of the City of San Jacinto desires to submit a LEAP grant application package (“Application”), on the forms provided by the Department, for approval of grant funding for projects that assist in the preparation and adoption of planning documents and process improvements that accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing need assessment; and WHEREAS, the Department has issued a NOFA and Application on January 27, 2020 in the amount of $119,040,000 for assistance to all California Jurisdictions; NOW, THEREFORE, BE IT RESOLVED, ordered and determined by the City Council of the City of San Jacinto: SECTION 1. The City Manager is hereby authorized and directed to apply for and submit to the Department the Application package. SECTION 2. In connection with the LEAP grant, if the Application is approved by the Department, the City Manager of the City of San Jacinto is authorized to submit the Application, enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement (Standard Agreement) for the amount of $160,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the LEAP grant, the Applicant’s obligations related thereto, and all amendment s thereto; and SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the NOFA, and the Standard Agreement provided by the Department after approval. The Application and any and all accompanying documents are incorporated in full as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the Application will be enforceable through the fully executed Standard Agreement. Pursuant to the NOFA and in conjunction with the te rms of the Standard Agreement, the Applicant hereby agrees to use the funds for eligible uses and 3.A.4.a Packet Pg. 82 Attachment: Resolution 3791 (Local Early Action Planning Grants Program Application Authorization) allowable expenditures in the manner presented and specifically identified in the approved Application. PASSED, APPROVED and ADOPTED at a regular meeting of the City Council of the City of San Jacinto on the 3rd day of March 2020 by the following vote: AYES: NAYS: ABSENT: ABSTAIN: CITY OF SAN J ACINTO: _______________________ Andrew Kotyuk, Mayor ATTEST: _____________________ Angela Walton, City Clerk APPROVED AS TO FORM: BEST BEST & KRIEGER LLP __________________________ Michael J. Maurer, City Attorney 3.A.4.a Packet Pg. 83 Attachment: Resolution 3791 (Local Early Action Planning Grants Program Application Authorization) CERTIFICATION State of California ) County of Riverside) ss City of San Jacinto) I, Angela Walton, duly appointed City Clerk of the City of San Jacinto, do hereby certify that the foregoing Resolution No. 3791 was duly passed, approved and adopted at a regular meeting of the City Council of the City of San Jacinto on the 3rd day of March 2020 by the following vote: AYES: NAYS: ABSENT: ABSTAIN: WITNESS MY HAND AND OFFICIAL SEAL the 3rd day of March 2020. _____________________________ Angela Walton, City Clerk City of San Jacinto 3.A.4.a Packet Pg. 84 Attachment: Resolution 3791 (Local Early Action Planning Grants Program Application Authorization) STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY Gavin Newsom, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF FINANCIAL ASSISTANCE 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2771 / FAX (916) 263-2763 www.hcd.ca.gov January 27, 2020 MEMORANDUM FOR: All Potential Applicants FROM: Zachary Olmstead, Deputy Director Division of Housing Policy Development SUBJECT: NOTICE OF FUNDING AVAILABILITY - LOCAL EARLY ACTION PLANNING GRANTS PROGRAM The California Department of Housing and Community Development (Department) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately $119,040,000 as part of the Local Early Action Planning Grants Program (LEAP or Program). LEAP is made available as a portion of the Local Government Planning Support Grants Program pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515 to 50515.05) (Chapter 159, Statutes of 2019). LEAP provides funding to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and facilitate compliance in implementing the sixth cycle of the regional housing need assessment (RHNA). In order to be eligible for grant funding, an applicant must submit a completed, signed original application and an electronic copy on CD or USB flash drive. Applications will be accepted on an Over-the-Counter (OTC) basis as of the date of this NOFA through July 1, 2020. The Department encourages early applications and will accept applications post-marked by the July 1, 2020 deadline. Applicants may utilize various carrier services, such as the U.S. Postal Service, UPS, FedEx, or other carrier services. All applications must be submitted to the Department at the following address: California Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Ave, Suite 500 Sacramento, CA 95833 Program applications, forms and instructions are available on the Department’s website at https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml. If you have questions regarding this NOFA, please email the Department at EarlyActionPlanning@hcd.ca.gov. Attachment 3.A.4.b Packet Pg. 85 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) LOCAL EARLY ACTION PLANNING GRANTS PROGRAM (LEAP) 2020 NOTICE OF FUNDING AVAILABILITY State of California Governor Gavin Newsom Alexis Podesta, Secretary Business, Consumer Services and Housing Agency Douglas R. McCauley, Acting Director California Department of Housing and Community Development Zachary Olmstead, Deputy Director California Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Avenue, Suite 500 Sacramento, CA 95833 Telephone: (916) 263-2911 Website: https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml Email: EarlyActionPlanning@hcd.ca.gov January 27, 2020 3.A.4.b Packet Pg. 86 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) Table of Contents I. Introduction............................................................................................................. 1 II. Authority and Scope ............................................................................................... 1 III. Program Summary ................................................................................................. 2 IV. Program Timeline ................................................................................................... 2 V. Award Amounts ...................................................................................................... 3 VI. Eligible Applicants .................................................................................................. 3 VII. Eligible Activities ..................................................................................................... 4 VIII. Ineligible Activities .................................................................................................. 6 IX. Eligible Uses ........................................................................................................... 7 X. Ineligible Uses ........................................................................................................ 7 XI. Application Requirements....................................................................................... 7 XII. Application Submission Requirements ................................................................... 8 XIII. Application Review ................................................................................................. 8 XIV. Award Letter and Standard Agreement .................................................................. 9 XV. Appeals .................................................................................................................. 9 XVI. Administration ....................................................................................................... 10 XVII. Right to Modify or Suspend the NOFA, and Final Decision-making ..................... 13 XVIII. Definitions............................................................................................................. 14 3.A.4.b Packet Pg. 87 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 1 Local Early Action Planning Grants 2020 2019 NOTICE OF FUNDING AVAILABILITY LOCAL EARLY ACTION PLANNING GRANTS PROGRAM I. Introduction The California Department of Housing and Community Development (Department) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately $119,040,000 as part of the Local Early Action Planning Grants Program (LEAP or Program). LEAP is made available as a portion of the Local Government Planning Support Grants Program pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515.03 (Chapter 159, Statutes of 2019). The Program provides funding to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and facilitate compliance in implementing the sixth cycle of the RHNA. II. Authority and Scope This NOFA is authorized pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515 to 50515.05). The NOFA implements, interprets, and makes specific provisions for purposes of implementing planning grants to jurisdictions pursuant to 50515.03 (hereinafter “LEAP”). This NOFA establishes terms, conditions, forms, procedures and other mechanisms as the Department deems necessary to exercise the powers and perform the duties conferred by Chapter 3.1. The matters set forth herein are regulatory mandates, and are adopted in accordance with the authorities set forth below: Quasi-legislative regulations … have the dignity of statutes … [and]… delegation of legislative authority includes the power to elaborate the meaning of key statutory terms… Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999) Further, the Department may implement the Program through the issuance of forms, guidelines, and one or more NOFAs, as the Department deems necessary, to exercise the powers and perform the duties conferred on it by this chapter. Any forms, guidelines, and notices of funding availability adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (Health and Safety Code Section 50515.04(f)). The Department reserves the right, at its sole discretion, to suspend or amend the provisions of this NOFA, including, but not limited to, grant award amounts. 3.A.4.b Packet Pg. 88 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 2 Local Early Action Planning Grants 2020 III. Program Summary The Local Early Action Planning Grants Program (LEAP or Program) is part of the broader Program formerly known as the Local Government Planning Support Grants Program, which was established as part of the 2019-20 Budget Act. The 2019-20 Budget Act provides a spectrum of support, incentives, resources and accountability to meet California’s housing goals. Some specific elements include: • Planning Support (local and regional planning grants) • Incentives (Prohousing preference and infill incentive grants) • Funding Resources • Accountability (penalties for noncompliant housing plans) • Reform (collaborative processes to reform regional housing needs) The Local Government Planning Support Grants Program provides one-time grant funding to regions and jurisdictions for technical assistance, preparation and adoption of planning documents, and process improvements. The over-arching goals of the Program are to (1) accelerate housing production; and (2) facilitate compliance to implement the sixth cycle of the regional housing need assessment (RHNA). IV. Program Timeline Grants will be available to eligible applicants on a noncompetitive, Over-the- Counter (OTC) basis. Applications will be accepted from the date of the release of this NOFA and up until July 1, 2020. See Table 1 below for the anticipated timeline for awards for the OTC period. Event Date NOFA Release January 27, 2020 NOFA Application Webinar February 14, 2020 NOFA Application Workshops February and March 2020 Final Due Date for OTC Applications July 1, 2020 Technical Assistance February 2020 through December 31, 2023 Expenditure Deadline December 31, 2023 3.A.4.b Packet Pg. 89 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 3 Local Early Action Planning Grants 2020 The Department will review applications within 30 days and target award of applications within 60 days, with subsequent Standard Agreements processed within 60 days of award. Applicants are encouraged to submit early in the application window. The Department will hold workshops and a webinar to review the LEAP NOFA and application and will be conducting technical assistance to aid applicants throughout the OTC period and implementation of the grant. For a list of dates, times, and locations for the workshops as well as information on technical assistance, please visit the Department’s website at https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml. V. Award Amounts This Program will make $119,040,000 dollars available to jurisdictions for Program implementation, including state operations and expenditures, and technical assistance. Maximum award amounts are based on population estimates as of January 1, 2019.1 The minimum award amount is $25,000. The maximum amount that a jurisdiction may receive pursuant to this subdivision shall be as follows: Jurisdiction Size (in population) Maximum Award Amount 750,000 or greater $1,500,000 300,000 to 749,999 $750,000 100,000 to 299,999 $500,000 60,000 to 99,999 $300,000 20,000 to 59,999 $150,000 Less than 20,000 $65,000 Applicants seeking partnerships with other local governments will be additive. For example, two jurisdictions between 100,000 and 299,999 people could submit a proposal for up to $1.0 million. VI. Eligible Applicants Eligible applicants are limited to local governments, i.e., cities and counties. However, local governments may partner through legally binding agreements with other forms of governments or entities where the proposal will have a direct effect 1 Population estimates, posted as of January 1, 2019, are based on the Department of Finance E-1 report. Official maximum amounts per jurisdiction can be found at the Department’s website at https://www.hcd.ca.gov/grants- funding/active-funding/leap.shtml. 3.A.4.b Packet Pg. 90 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 4 Local Early Action Planning Grants 2020 on land-use or development within the participating localities. This includes, but is not limited to, partnerships with other localities, regional governments, housing authorities, school districts, special districts, community-based organizations, or any duly constituted governing body of an Indian Reservation or Rancheria. Applicants forming partnerships, must submit separate, completed and signed application packages, including resolutions and a copy of the signed agreement between partners to the Department in order to be awarded funds. VII. Eligible Activities Eligible activities must demonstrate an increase in housing related planning activities and facilitate accelerated housing production. Eligible activities may be part of a larger planning effort (e.g., a comprehensive zoning code update) if proposed activities have not been completed prior to the NOFA date, are distinct, and demonstrate a nexus to accelerating housing production. Eligible activities are not necessarily jurisdiction-wide and may include a smaller geography with a significant impact on housing production. For example, eligible activities may include a housing development-related project with a significant community level impact, or planning or process improvement for a project with an ongoing community impact beyond the project. Eligible activities may include a variety of planning documents and processes, including, but not limited to, the following as set forth in Health and Safety Code section 50515.03(c): 1. Rezoning and encouraging development by updating planning documents and zoning ordinances, such as General Plans, community plans, specific plans, implementation of sustainable communities’ strategies, and local coastal programs; 2. Completing environmental clearance to eliminate the need for project- specific review; 3. Establishing housing incentive zones or other area-based housing incentives beyond State Density Bonus Law such as a workforce housing opportunity zone pursuant to Article 10.10 (commencing with Section 65620) of Chapter 3 of Division 1 of Title 7 of the Government Code, or a housing sustainability district pursuant to Chapter 11 (commencing with Section 66200) of Division 1 of Title 7 of the Government Code; 4. Performing infrastructure planning, including for sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents; 5. Planning documents to promote development of publicly-owned land, such as partnering with other local entities to identify and prepare excess or surplus property for residential development; 6. Revamping local planning processes to speed up housing production; 7. Developing or improving an accessory dwelling unit ordinance in compliance with Section 65852.2 of the Government Code; 8. Planning documents for a smaller geography (less than jurisdiction-wide) with a significant impact on housing production, including an overlay district, project level specific plan, or development standards modifications proposed for significant areas of a locality, such as corridors, downtown or priority growth areas; 3.A.4.b Packet Pg. 91 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 5 Local Early Action Planning Grants 2020 9. Rezoning to meet requirements pursuant to Gov. Code Section 65583(c)(1), and other rezoning efforts to comply with Housing Element requirements, including Gov. Code Section 65583.2(c) (AB 1397, Statutes of 2018); 10. Upzoning or other implementation measures to intensify land use patterns in strategic locations, such as close proximity to transit, jobs or other amenities; 11. Rezoning for multifamily housing in high resource areas (according to Tax Credit Allocation Committee/Housing Community Development Opportunity Area Maps); 12. Establishing pre-approved architectural and site plans; 13. Preparing and adopting Housing Elements of the General Plan that include an implementation component to facilitate compliance with the sixth cycle RHNA; 14. Adopting planning documents to coordinate with suballocations under Regional Early Action Planning Grants (REAP) pursuant to Health and Safety Code Section 50515.02(f) that accommodate the development of housing and infrastructure, and accelerate housing production in a way that aligns with state planning priorities, housing, transportation equity and climate goals, including hazard mitigation or climate adaptation; 15. Zoning for by-right supportive housing, pursuant to Gov. Code section 65651 (Chapter 753, Statutes of 2018); 16. Zoning incentives for housing for persons with special needs, including persons with developmental disabilities; 17. Planning documents related to carrying out a local or regional housing trust fund; 18. Environmental hazard assessments; data collection on permit tracking; feasibility studies, site analysis, or other background studies that are ancillary (e.g., less than 15 percent of the total grant amount) and part of a proposed activity with a nexus to accelerating housing production; and 19. Other planning documents or process improvements that demonstrate an increase in housing related planning activities and facilitate accelerating housing production; and 20. Establishing Prohousing Policies, as follows: Prohousing Policies The Department encourages applicants to consider LEAP funds to facilitate designation as a Prohousing jurisdiction. The 2019-20 Budget Act requires the Department to develop the Prohousing designation emergency regulations by no later than July 1, 2021. This program will allow the Department to designate jurisdictions as “Prohousing,” when they demonstrate policies and strategies to accelerate housing production. In turn, Prohousing jurisdictions will be awarded additional points or preference in programs such as the Affordable Housing and Sustainable Communities (AHSC), Transformative Climate Communities (TCC), Infill Infrastructure Grant (IIG) programs and other state funding programs. The Department anticipates developing emergency regulations and Prohousing designations prior to July 1, 2021, and will seek to designate jurisdictions prior to future rounds of AHSC, TCC and IIG 3.A.4.b Packet Pg. 92 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 6 Local Early Action Planning Grants 2020 programs. Pursuant to Gov. Code Section 65589.9(f)(2), “Prohousing” policies mean policies that facilitate the planning, approval, or construction of housing. These policies may include, but are not limited to, the following: A. Planning for local financial incentives for housing, including, but not limited to, establishing a local housing trust fund ; B. Reducing parking requirements for sites that are zoned for residential development; C. Adoption of zoning allowing for use by right for residential and mixed- use development; D. Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate the minimum existing RHNA for the current Housing Element cycle; E. Adoption of accessory dwelling unit ordinances or other mechanisms that reduce barriers for property owners to create accessory dwelling units beyond the requirements outlined in Section 65852.2, as determined by the Department; F. Process improvements that reduce permit processing time; G. Creating of objective development standards; H. Studies and implementing actions that reduce development impact fees; and I. Establishing a Workforce Housing Opportunity Zone, as defined in Section 65620, or a housing sustainability district, as defined in Section 66200.” VIII. Ineligible Activities 1. Activities unrelated to preparation and adoption of planning documents, and process improvements to accelerate housing production and facilitate compliance to implement the sixth cycle of the RHNA; 2. Activities that obstruct or hinder housing production, e.g., moratoriums, downzoning, planning documents with conditional use permits that significantly impact supply, cost, approval certainty and timing, planned development, or other similarly constraining processes; and 3. Project specific planning documents that do not have a significant impact on accelerating housing production or significant community level or re - occurring benefit beyond the project. 4. The Department may consider proposals that are combined with larger proposals that have a positive housing com ponent and the net effect on accelerating housing production is significant. For example, an applicant may propose combining an open-space designation, downzoning, or anti- displacement measures with by-right upzoning that has a significant net gain in housing capacity. 3.A.4.b Packet Pg. 93 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 7 Local Early Action Planning Grants 2020 IX. Eligible Uses 1. Grant funds may cover the costs of temporary staffing or consultant needs associated with eligible activities; 2. Grant funds shall be used for the costs of preparing and adopting the proposed activity; 3. A jurisdiction that receives funds under this Program may use a subcontractor. The subcontract shall provide for compliance with all the requirements of the Program. The subcontract shall not relieve the jurisdiction of its responsibilities under the Program; 4. Eligible expenditures may be incurred and expended for the project(s) subject to the terms and conditions of the Standard Agreement; and 5. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of the Standard Agreement, and completed during the grant term, will be reimbursable. X. Ineligible Uses 1. Program grant funds may not be used for administrative costs of persons employed by the grantee for activities not directly related to the preparation and adoption of the proposed activity; 2. No more than 5 percent of the grant amount may be used for administrative costs for any proposed use, to be approved by the Department upon disbursement; and 3. Approved and eligible costs incurred prior to the NOFA date are ineligible. XI. Application Requirements Until July 1, 2020, a jurisdiction may request an allocation of funds pursuant to this section by submitting a complete application to the Department that demonstrates: 1. A budget, including timelines, deliverables, sub-steps and adoption, that demonstrates funds will be utilized for eligible activities and uses; 2. How proposed activities will increase housing planning and facilitate accelerating local housing production; 3. Completed or proposed activities consistent with the state or other planning priorities; and 4. All other required information contained in the Department’s application Applicants will demonstrate consistency with these requirements utilizing the forms and manner prescribed in the Department application. Accelerating Housing Production: Applicants must propose and document plans or processes that increase housing planning and facilitate accelerating local housing production. The application must demonstrate a significant positive effect on accelerating housing production through timing, cost, approval certainty, entitlement streamlining, feasibility, infrastructure capacity, or impact on housing 3.A.4.b Packet Pg. 94 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 8 Local Early Action Planning Grants 2020 supply and affordability. An application must include an explanation and documentation of the nexus to accelerating housing production based on a reasonable and verifiable methodology and must utilize the Department’s form (see the Department’s application). A verifiable methodology may include a statement of support from a non-profit or for-profit developer that is active in the locality. State and Other Planning Priorities: Consistency with state or other planning priorities may be demonstrated through proposed activities in the application OR activities that were completed within the last five years. Applicants must self - certify utilizing the Department’s form (see Department’s application). XII. Application Submission Requirements In order to be eligible for grant funding, an applicant must submit a completed, signed original application and an electronic copy on CD or USB flash drive. Applications will be accepted on an OTC basis as of the date of this NOFA through July 1, 2020. The Department encourages early applications and will accept applications post-marked by the July 1, 2020 deadline. Applicants may utilize various carrier services, such as the U.S. Postal Service, UPS, FedEx, or other carrier services. All applications must be submitted to the Department at the following address: California Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Ave, Suite 500 Sacramento, CA 95833 Applications must be on Department forms and cannot be altered or modified by the applicant. Program applications and forms are available on the Department’s website located at https://www.hcd.ca.gov/grants-funding/active- funding/leap.shtml. XIII. Application Review 1. The Program will not utilize a competitive process to award funds. 2. Funds will be available to eligible applicants on a rolling OTC basis that begins as of the date of this NOFA and ends July 1, 2020. 3. An application form will be available upon release of the NOFA and will include forms to demonstrate meeting eligibility requirements such as, among other forms, a resolution, a proposed budget and timeline table and self - certified attachments demonstrating a nexus to housing production and consistency with state planning and other priorities; 4. Applications will first be reviewed for, among other things, completeness, eligibility requirements, and accuracy; 5. In order to be considered complete, an application must contain requested 3.A.4.b Packet Pg. 95 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 9 Local Early Action Planning Grants 2020 information and supporting documentation where appropriate; 6. All applications must meet the eligibility requirements as specified in this NOFA; 7. If the application is ineligible, it will not be considered for funding , but may be amended and resubmitted; 8. The Department may request additional information to complete and approve the application for funding; 9. Applications recommended for funding are subject to conditions specified by the Department; 10. Applications will be reviewed within 30 days from the date the Department receives the application; and 11. All applicants not meeting the eligibility requirements will be informed within 30 days from the date the Department receives the application. XIV. Award Letter and Standard Agreement Successful applicants will receive an Award Letter from the Department and will be awarded funds. Applicants will enter into a state Standard Agreement (Standard Agreement) for distribution of funds. The Standard Agreement process will specify, among other things, the amount of funds granted, timeline for expenditure of funds, and the approved use of funds. Expenditure report dates and other requirements will also be identified in the Standard Agreement. XV. Appeals 1. Basis of Appeals: A. Upon receipt of the Department’s notice deeming an application incomplete or ineligible, applicants under this NOFA may a ppeal such decision(s) to the Department Director. B. The decision of the Director is final and not subject to further administrative or judicial review. C. No applicant shall have the right to appeal a decision of the Department relating to another applicant’s eligibility, award, denial of award, or any other related matter. 2. Appeals Process and Deadlines: A. Process. In order to lodge an appeal, applicants must submit to the Director by the deadline set forth in subsection (b) below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. No new or additional information will be accepted. Once the written appeal is submitted to the Director, no further information or materials is required to be accepted or considered thereafter. Appeals are to be submitted to the Director at following address: 3.A.4.b Packet Pg. 96 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 10 Local Early Action Planning Grants 2020 California Department of Housing and Community Development Division of Housing Policy Development 2020 W. El Camino Avenue, Suite 500 Sacramento, California 95833 EarlyActionPlanning@hcd.ca.gov The Director will accept appeals delivered through a carrier service such as the U.S. Postal Service, UPS, Fed-Ex, or other carrier services that provide date stamp verification of delivery. Deliveries must be received during the Department’s weekday (non-state holiday) business hours of 9:00 a.m. to 5:00 p.m. Pacific Standard Time. Additionally, emails to the email address listed above will be accepted if the email time stamp is prior to the appeal deadline. B. Filing Deadline. Appeals must be received by the Director no later than (5) five business days from the date of the Department’s determination. 3. Decision: Any request to amend the Department’s decision shall be reviewed for compliance with this NOFA and its application. The Director shall render his/her decision in writing within fifteen (15) business days of receipt of the applicant’s written appeal. The decision of the Director shall be the Department’s final decision, and shall not be appealable to any court or tribunal. XVI. Administration 1. Grant Execution and Term A. The Department will notify the grantee if they have been selected for a grant award; B. After the Standard Agreement has been drawn, the grantee will be provided instructions for signing all required documents. The grantee must submit all supporting materials and a signed Standard Agreement within the timeline provided in the instructions, or risk forfeiting the grant award; C. The grant term begins on the day the Department and the grantee have fully executed the Standard Agreement. The Department will notify the grantee and partners when work may proceed under the agreement. However, eligible activities that are approved by the Department may be retroactively reimbursed to the date of the NOFA; and D. The end of the grant term will be determined by the state based on the availability of grant funds and the administrative requirements for liquidation. 3.A.4.b Packet Pg. 97 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 11 Local Early Action Planning Grants 2020 2. Payment and Accounting of Grant Funds A. Grant funds cannot be disbursed until the Standard Agreement has been fully executed; B. The grantee will be responsible for compiling and submitting all invoices and reporting documents. Grantees will submit for reimbursements to the Department based on actual cost incurred; C. The grantee must bill the state based on clear deliverables outlined in the Standard Agreement or budget timeline. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of the Standard Agreement, and completed and processed prior to the expenditure deadline, will be reimbursable. Approved and eligible costs incurred prior to the NOFA date are ineligible; D. Work must be completed prior to requesting reimbursement; E. Grant fund payment will be made on a reimbursement basis; advance payments are not allowed. The grantee and partners must have adequate cash flow to pay all grant-related expenses prior to requesting reimbursement from the Department. Project invoices will be submitted to the Department by the grantee on a quarterly basis; F. In unusual circumstances, the Department may consider alternative arrangements to reimbursement and payment methods based on documentation demonstrating cost burdens, including the inability to pay for work; G. Supporting documentation may include, but is not limited to: receipts, progress payments, subcontractor invoices, time cards, etc.; H. Invoices must be accompanied by reporting materials where appropriate. Invoices without the appropriate reporting materials will not be paid. The Department may withhold 10 percent of the grant until gra nt terms have been fulfilled; and I. Each recipient of funds under the Program shall expend those funds no later than December 31, 2023. 3. Accounting Records and Audits A. The grantee must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the budget and timeline. Separate bank accounts are not required; B. The grantee shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the course of the project, in accordance with generally accepted accounting principles; C. The grantee agrees that the state or designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of the Standard Agreement; D. The grantee agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated; E. Subcontractors employed by the grantee and paid with moneys under the 3.A.4.b Packet Pg. 98 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 12 Local Early Action Planning Grants 2020 terms of this Standard Agreement shall be responsible for maint aining accounting records as specified above; F. At any time during the term of the Standard Agreement, the Department may perform, or cause to be performed, a financial audit of any and all phases of the award. At the Department’s request, the awardee shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during project implementation and over the project life; G. The Department may request additional information, as needed, to meet other applicable audit requirements; and H. The Department may monitor expenditures and activities of an applicant, as the Department deems necessary, to ensure compliance with Program requirements. 4. Remedies of Nonperformance A. In the event that it is determined, at the sole discretion of the state, that the grantee is not meeting the terms and conditions of the Standard Agreement, immediately upon receiving a written notice from the Department to stop work, the grantee shall cease all work under the Standard Agreement. The Department has the sole discretion to determine that the grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the grantee to resume work under the Standard Agreement; B. Both the grantee and the Department have the right to terminate the Standard Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the grantee or the Department to rectify any deficiency(ies) prior to the early termination date. The grantee will submit any requested documents to the Department within 30 days of the early termination notice; and C. There must be a strong implementation component for the funded activity through this Program, including, where appropriate, agreement by the locality to formally adopt the completed planning document. Localities that do not formally adopt the funded activity could be subject to repayment of the grant. D. The Department may, as it deems appropriate or necessary, request the repayment of funds from an applicant, or pursue any other remedies available to it by law for failure to comply with Program requirements (Health and Safety Code section 50515.04(e). 5. Reporting A. At any time during the term of the Standard Agreement, the Department may request a performance report that demonstrates satisfaction of all requirements identified in the Standard Agreement with emphasis on eligible activities, eligible uses, ineligible uses, and expenditures, according to timelines and budgets referenced in the Standard Agreement; B. Awardees shall submit a report, in the form and manner prescribed by 3.A.4.b Packet Pg. 99 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 13 Local Early Action Planning Grants 2020 the Department, to be made publicly available on its internet website, by April 1 of the year following the receipt of those funds, and annually thereafter until those funds are expended, that contains the following information: • The status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction; and • A summary of building permits, certificates of occupancy, or other completed entitlements issued by entities within the region, or by the jurisdiction, as applicable. C. The awardee must, in lieu of a separate report, provide the above described information as part of its annual report pursuant to Gov. Code Section 65400; D. The Department may request additional information, as needed, to meet other applicable reporting requirements; E. Upon completion of all deliverables within the Standard Agreement, the awardee shall submit a close out report. See Attachment 1; and F. The Department shall maintain records of the following and provide that information publicly on its internet website: • The name of each applicant for Program funds and the status of that entity’s application; • The number of applications for Program funding received by the Department; and • The information described in 5(B) above for each recipient of Program funds. XVII. Right to Modify or Suspend the NOFA, and Final Decision-making The Department reserves the right, at is sole discretion, to suspend, amend, or modify the provisions of this NOFA at any time, including, without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties and will post the revisions to the Department’s website. You may subscribe to the Department’s email list here: http://www.hcd.ca.gov/HCD_SSI/subscribe-form.html. Further, the Department’s decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding to be provided, shall be final. 3.A.4.b Packet Pg. 100 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 14 Local Early Action Planning Grants 2020 XVIII. Definitions All terms not defined below shall, unless their context suggests otherwise, be interpreted in accordance with the meanings of terms described in Health and Safety Code section 50470. A. “Accelerating Housing Production” means improving the timing, cost, feasibility, approval and amount of development through various mechanisms such as zoning incentives (e.g., increased density and heights, reduced parking requirements), upzoning, zoning amendments to permit residential in non-residential zones, corridor planning, development standards modifications, non-discretionary review, financing strategies, sliding scale fee modifications, facilitating adequate infrastructure to support development, approval streamlining that addresses quickness and ease of entitlements, and other mechanisms that promote production or remove or mitigate regulatory barriers. B. “Affordability” means a housing unit that satisfies at least one of the following criteria: 1. It is available at an “affordable rent” as that term is used and defined in Section 50053 of the Health & Safety Code; 2. It is offered at an “affordable housing cost”, as that term is used and defined in Section 50052.5 of the Health & Safety Code; or 3. It is available at an “affordable rent” or an “affordable housing cost” according to the alternative percentages of income for agency -assisted rental and cooperative housing developments pursuant to Department regulations adopted under Health and Safety Code section 50462(f). C. “Annual Progress Report” (APR) means the annual report required to be submitted to the Department pursuant to paragraph (2) of subdivision (a) of Section 65400 of the Government Code. D. “Completed entitlement” means a housing development project that has received all the required land use approvals or entitlements necessary for the issuance of a building permit and for which no additional action, including environmental review or appeals, is required to be eligible to apply for and obtain a building permit. E. “Council of governments” means a single or multicounty council created by a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is responsible for allocating regional housing need pursuant to Sections 65584, 65584.04, and 65584.05 of the Government Code. F. “Department” means the California Department of Housing and Community Development. 3.A.4.b Packet Pg. 101 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 15 Local Early Action Planning Grants 2020 G. “Housing” means any development that satisfies both of the following criteria: 1. At least two-thirds of the square footage of the development must be designated for residential use; and 2. Includes a house, an apartment, a mobile home or trailer, a group of rooms, or a single room that is occupied as separate living quarters, or, if vacant, is intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live separately from any other individuals in the building , and which have a direct access from the outside of the building, or through a common hall. Note: accessory dwelling units (ADU) and junior accessory dwelling units (JADU) pursuant to Gov. Code sections 65852.2 and 65852.22 meet the definition above. H. “Housing Element” or “element” means the Housing Element of a community’s General Plan, as required pursuant to subdivision (c) of Section 65302 of the Government Code and prepared in accordance with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. I. “Jurisdiction” means any city, including a charter city, county, including a charter county or city and county, including a charter city and county. J. “Local government” or “Locality” means any city, including a charter city, county, including a charter county or city and county, including a charter city and county. K. “Objective zoning standard”, “objective subdivision standard”, and “objective design review standard” means standards that involve no personal or subjective judgment by a public official, and are uniformly verifiable by reference to an external and uniform benchmark or criterion available, and knowable by both the development applicant or proponent and the public official prior to submittal. “Objective design review standards” means only objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submission of a development application, which are broadly applicable to development within the jurisdiction. L. “Other Planning Priorities” means planning, policies, programs or investments to promote housing choices and affordability to lower and moderate income households, the encouragement of conservation of the existing affordable housing stock, and efforts to take into account current and future impacts of climate change, including hazard mitigation. M. “Regional housing need assessment” means the existing and projected need for housing for each region, as determined by the Department pursuant to Section 65584.01 of the Government Code. 3.A.4.b Packet Pg. 102 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 16 Local Early Action Planning Grants 2020 N. “State Planning Priorities” means priorities which are intended to promote equity, strengthen the economy, protect the environment, and promote public health and safety in the state, including in urban, suburban, and rural communities pursuant to Gov. Code Section 65041.1. O. “Streamlined Housing Production” means improving the entitlement process through actions such as removing, mitigating or minimizing local regulatory requirements, reforming the local approval process to reduce processing times, the number of local discretionary approvals and permits needed for projects, improving approval certainty, establishing non -discretionary processes, modifying development standards, such as reducing parking requirements and increasing height limits, or other efforts, such as taking the fullest advantage of existing streamlining mechanisms provided in state law. 3.A.4.b Packet Pg. 103 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 17 Local Early Action Planning Grants 2020 Attachment 1 Close Out Reporting Form 3.A.4.b Packet Pg. 104 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 18 Local Early Action Planning Grants 2020 LEAP Grant Close Out Reporting Template Brief Summary • Overview of the project • Project start date and duration • Project goals and relevance to LEAP goals • Quantified outcomes Lead Agency and Partnerships • List lead agency and partnerships (including names, titles, organizations, and roles and responsibilities of each) • What did those collaborative relationships and processes look like? Drivers • Did any local, state, or federal legislation or mandates drive the project? (SB 35, AB 1397, etc.) • Was it a community driven effort? • Were there additional funding opportunities present? Engagement Process • Who were your stakeholders? • What did the engagement process look like? • What role did stakeholders play in the process? (Keep in mind: training, education, council formation, technical assistance, etc.) • What were the outcomes of the engagement process? Challenges • What challenges were encountered? • What solutions were encountered or created? • Are there areas for improvement of policy alignment at the state or federal level to help achieve this project more easily? 3.A.4.b Packet Pg. 105 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) CA HCD Notice of Funding Availability 19 Local Early Action Planning Grants 2020 LEAP Grant Close Out Reporting Template Outcomes • What are the current or projected outcomes? Benefits? • Were outcomes as anticipated? • Have new opportunities arisen as a result of this project? • What are the next steps? Replicability • What aspects of the project could be replicated in other communities? • Useful resources and tools? For a specific region or sector? Additional Resources • Links to the project itself • Links to resources used throughout and any other relevant resources Further Information • Who can be reached to ask more questions about this project? • Name • Number and/or email 3.A.4.b Packet Pg. 106 Attachment: Notice of Funding Availability - January 27, 2020 (Local Early Action Planning Grants Program Application Authorization) March 3, 2020 TO: City Council REQUESTED BY: Tom Prill, Deputy City Manager APPROVED BY: Robert A. Johnson, City Manager SUBJECT: Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2019 RECOMMENDATION: Staff recommends that the City Council receive and file the Annual Financial Report of the City of San Jacinto for the fiscal year ended June 30, 2019, as well as the “SAS 114” Report and the “GAS” Report. BACKGROUND: An audit of financial transactions and internal controls is both legally required and mandated under bond covenants. Audit activities were conducted by the firm Rogers, Anderson, Malody & Scott, LLP (RAMS) at various times in July and November 2019. Finance staff received a draft of the report in January 2020, and performed a review of the report and completed the Management Discussion and Analysis (MD&A) in February 2020. DISCUSSION: RAMS has rendered an unqualified opinion that the general purpose financial statements, present fairly, in all material respects, the financial position of the City of San Jacinto at June 30, 2019, and the changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. RAMS is also required by professional standards to provide certain information regarding the audit process and their responsibilities under generally accepted auditing standards and Government Auditing Standards. The attached “SAS 114” report communicates this information. RAMS is also required by professional standards to provide a report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. Accordingly, the “GAS” report is also presented. The attached reports were in draft format as of the Agenda deadline. However, it is expected that the reports will be finalized and presented with either no or very minimal changes at the meeting. Once received and filed, a copy of the Annual Financial Report will be available for download on the City’s website. 4.1 Packet Pg. 107 FISCAL IMPACT: This action has no fiscal impact. ATTACHMENTS: 2019 City of San Jacinto FS - Final Draft 2019 City of San Jacinto SAS 114 Letter - draft 2019 City of San Jacinto GAS - draft 4.1 Packet Pg. 108 CITY OF SAN JACINTO, CALIFORNIA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2019 Final Draft 2/27/2020 4.1.a Packet Pg. 109 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June City of San Jacinto Annual Financial Report For the Year Ended June 30, 2019 Table of Contents PAGE Independent Auditor's Report 1 Management's Discussion and Analysis 3 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 12 Statement of Activities 13 Fund Financial Statements Governmental Funds Balance Sheet 15 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 17 Statement of Revenues, Expenditures and Changes in Fund Balances 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20 Proprietary Funds Statement of Net Position 21 Statement of Revenues, Expenses and Changes in Net Position 23 Statement of Cash Flows 25 Fiduciary Funds Statement of Fiduciary Net Position 29 Statement of Changes in Fiduciary Net Position 30 Notes to the Basic Financial Statements 31 Required Supplementary Information Budgetary Comparison Schedule General Fund 71 Community Facilities District 2003 Fund Successor Housing Authority LLPD #2 Fund Assessment District 2003-01 Schedule of the City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios as of the Measurement Date - Last 10 Years Schedule of Plan Contributions - Last 10 Years 72 73 74 75 76 77 Non-Major Governmental Funds Combining Balance Sheet - Non-major funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-major funds 78 85 Final Draft 2/27/2020 4.1.a Packet Pg. 110 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -1- INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and Members of City Council The City of San Jacinto, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of San Jacinto, California (City), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Final Draft 2/27/2020 4.1.a Packet Pg. 111 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -2- Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2019, 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. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, the schedule of proportionate share of net pension liability and related ratios as of the measurement date, and the schedule of plan contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements 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 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 are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 3, 2020 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. San Bernardino, California March 3, 2020 Final Draft 2/27/2020 4.1.a Packet Pg. 112 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June CITY OF SAN JACINTO MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019 -3- As management of the City of San Jacinto, we offer readers of the City of San Jacinto’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ending June 30, 2019. We encourage readers to consider the information presented here in conjunction with the City’s financial statements, which follow this discussion. FINANCIAL HIGHLIGHTS  Total assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $150,223,313 (net position). Of this amount, $10,042,727 represents unrestricted net position, which may be used to meet the government’s ongoing obligations to citizens and creditors.  The City’s total net position increased by $1,349,807 from the prior fiscal year mainly due to increased program revenues.  At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $36,348,520, an increase of $205,897 in comparison with the prior year. Approximately 9.2 percent of this amount ($3,351,142) 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 unassigned components of fund balance) for the General Fund was $7,124,883, or approximately 34.1 percent of total general fund expenditures. OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of four parts – Management’s Discussion and Analysis (this portion), the basic financial statements, Required Supplementary Information, and optional combining statements for non-major governmental funds. The basic financial statements include two kinds of statements that present different views of the City.  The government-wide financial statements provide both long-term and short-term information about the City’s overall financial status, in a manner similar to private sector business.  Fund financial statements focus on individual parts of the City, reporting the City’s operations in more detail than the government-wide financial statements.  Governmental fund statements tell how general government services, such as community development, were financed in the short-term as well as what remains for future spending.  Proprietary fund statements offer short-term and long-term financial information about the activities the City operates like businesses, such as utility services.  Fiduciary fund statements provide information about financial relationships in which the City acts solely as a trustee or agent for the benefit of others, to whom the resources belong. DetailSummary Required Supplementary Information Notes to the Government-wide Fund Financial Components of the Financial Section Statements Financial Statements Statements Financial Financial Analysis Basic Statements Management's Discussion and Final Draft 2/27/2020 4.1.a Packet Pg. 113 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June CITY OF SAN JACINTO MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019 -4- The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a comparison of actual results with the original and final amended budget for the general fund and each major special revenue fund with an annually adopted budget. In addition to these required elements, we have included combining statements that provide details about our non- major governmental funds, which are presented in total in a column in the basic financial statements. Government-wide Financial Statements The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the City’s assets and liabilities. All current year revenues and expenses are reported in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the City’s net position and how they have changed during the fiscal year. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial health of the City is improving or deteriorating. The government-wide financial statements of the City are divided as follows:  Governmental activities – All of the City’s basic services are included here, such as police, fire, engineering, streets, parks and recreation, history preservation, community development, redevelopment and general government. Taxes and state and federal grants finance most of these activities.  Business-type activities – The City’s utility services provided are funded by customer fees. Fund Financial Statements A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund financial statements provide more detailed information about the City’s largest funds, not the City as a whole. The City has three types of funds:  Governmental funds – All of the City’s basic services are included in governmental funds, which focus on (1) short-term inflows and outflows of spendable resources, and (2) the remaining year-end balances available for spending. Because this information does not encompass the additional long-term focus of the government-wide statements, reconciliations that explain the relationship (or differences) between governmental funds and governmental activities follow each of the governmental funds statements.  Proprietary funds – Services for which customer fees are intended to finance the costs of operations are generally reported in proprietary funds. Proprietary funds financial statements, like the government-wide statements, provide both long-term and short-term financial information.  Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.  Internal service funds report activities that provide services for the City’s other programs and activities, such as the City’s self-insurance arrangements.  Fiduciary funds – The City is the trustee for certain assessment and community facilities district funds. It is also responsible for other trust account assets, which because of trust agreements, can be used only for the trust beneficiaries. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position. We exclude these activities from the City’s government-wide financial statements because the City cannot use these assets to finance its operations. Final Draft 2/27/2020 4.1.a Packet Pg. 114 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June CITY OF SAN JACINTO MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019 -5- FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole. City of San Jacinto Government-wide Financial Statements - Summary of Net Position As of June 30, 2019 and 2018 (in thousands) 2019 2018 2019 2018 2019 2018 Cash and investments, unrestricted 36,462$ 38,160$ 6,413$ 2,845$ 42,875$ 41,005$ Current and other assets 10,573 8,336 2,432 2,271 13,005 10,607 Capital assets, net 106,844 106,151 13,418 13,690 120,262 119,841 Total assets 153,880 152,647 22,263 18,806 176,142 171,453 Deferred outflows of resources 2,486 1,593 664 728 3,150 2,321 Long-term liabilities 4,841 7,473 4,644 6,984 9,485 14,457 Other liabilities 13,955 4,811 4,389 1,890 18,344 6,701 Total liabilities 18,797 12,284 9,032 8,874 27,829 21,158 Net position: Deferred Inflow s of Resources 1,070 170 170 73 1,240 243 Net investment in capital assets 104,656 105,066 9,260 8,887 113,916 113,953 Restricted 26,264 24,439 - - 26,264 24,439 Unrestricted 5,578 12,281 4,465 1,700 10,043 13,981 Total net position 136,498$ 141,786$ 13,725$ 10,587$ 150,223$ 152,373$ Governmental Activities Business-type Activities Total Primary Government Net position represents the difference between the City’s resources and its obligations. At June 30, 2019, the largest portion of the City’s total net position, approximately 75.8 percent, reflects the investment in capital assets less related debt outstanding used to acquire the capital assets. These capital assets are used by the City to provide services to the citizens. Additional capital asset information can be found in the Capital Asset and Debt Administration sections of the MD&A. Restricted net position represents amounts that must be used in accordance with external restrictions. The unrestricted balance of net position may be used at the City’s discretion. The net position of our business-type activities increased by 29.6 percent to $13,724,847, and the City generally can only use this net position to finance the continuing operations of the business-type activities. Final Draft 2/27/2020 4.1.a Packet Pg. 115 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June CITY OF SAN JACINTO MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019 -6- City of San Jacinto Government-wide Financial Statements - Changes in Net Position For the year ended June 30, 2019 and 2018 (in thousands) Total Percent 2019 2018 2019 2018 2019 2018 Change Revenues Program revenues: Charges for services 6,681$ 7,854$ 18,518$ 7,125$ 25,199$ 14,979$ 68.2% Operating grants and contributions 6,582 6,470 - - 6,582 6,470 1.7% Capital grants and contributions 6,673 6,162 - - 6,673 6,162 8.3% General revenues: Property taxes/property tax in-lieu 6,669 6,139 - - 6,669 6,139 8.6% Transient occupancy taxes 44 44 - - 44 44 0.0% Franchise taxes 2,108 1,930 - - 2,108 1,930 9.2% Sales taxes 3,506 2,907 - - 3,506 2,907 20.6% Other taxes 205 210 - - 205 210 -2.4% Other 1,259 566 92 32 1,351 598 125.9% Total revenues 33,727 32,282 18,610 7,157 52,337 39,439 32.7% Expenses Governmental activities: General government 3,157 2,465 - - 3,157 2,465 28.1% Public safety 14,999 14,190 - - 14,999 14,190 5.7% Public works 8,935 7,673 - - 8,935 7,673 16.4% Community development 7,475 6,247 - - 7,475 6,247 19.7% Culture and leisure 756 774 - - 756 774 -2.3% Interest on long-term debt 193 313 - - 193 313 -38.3% Business-type activities: Water - - 4,181 4,568 4,181 4,568 -8.5% Sewer - - 1,012 974 1,012 974 3.9% Power - - 10,278 - 10,278 - 100.0% Non-major - - - 1,722 - 1,722 -100.0% Total expenses 35,515 31,662 15,471 7,264 50,986 38,926 31.0% Increase (decrease) in net position (1,788)$ 620$ 3,139$ (107)$ 1,351$ 513$ 163.4% Governmental Business-type Total Primary Activities Activities Government Final Draft 2/27/2020 4.1.a Packet Pg. 116 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June CITY OF SAN JACINTO MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019 -7- Revenue The City’s total revenue, excluding transfers, was $52,337,858 for the year ended June 30, 2019. Revenue from governmental activities, excluding transfers, totaled $33,729,733 and revenue from business-type activities totaled $18,608,125, excluding transfers. During 2019, capital grants and contributions, restricted to the construction of capital assets, comprised 12 percent of the total revenue of the City, taxes and other general revenues provided 27 percent of the total revenue of the City, and charges for services and operating grants and contributions provided 61 percent of the total revenue of the City. Most of the revenues remained stable from 2018 to 2019, with increases due to financing proceeds and a full year of the City’s Power activity. Expenses The City’s expenses totaled $50,988,051 for the year. Governmental activity expenses totaled $35,515,799, or 70 percent of total expenses. Business-type activities incurred $15,472,252 of expenses during the year, or 30 percent of total expenses. Increases in almost all categories relate to an increase in overall activity, including a full year of the City’s Power activity. Governmental Activities The following table shows the cost of each of the City’s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities, and reflects the financial burden that was placed on the City’s taxpayers by each of the programs. City of San Jacinto Government-wide Financial Statements - Net Cost of Governmental Activities For the year ended June 30, 2019 and 2018 (in thousands) Percent Percent 2019 2018 Change 2019 2018 Change General government 3,157$ 2,465$ 28.1%616$ 144$ 327.8% Public safety 14,999 14,190 5.7%10,860 9,523 14.0% Public works 8,935 7,673 16.4%4,514 3,660 23.3% Community development 7,475 6,248 19.6%(1,359) (3,238) -58.0% Culture and leisure 756 774 -2.3%756 774 -2.3% Total 35,322$ 31,350$ 12.7%15,387$ 10,863$ 41.6% Total Cost of Services Net Cost of Services The cost for all governmental activities this year was $35,322,600, not including interest expense of $193,199. The City’s taxpayers paid for approximately 39.1 percent of these costs. Fees, grants and contributions funded the balance of the costs of governmental activities. Final Draft 2/27/2020 4.1.a Packet Pg. 117 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June CITY OF SAN JACINTO MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019 -8- Business-type Activities Charges for services of the City’s business-type activities totaled $18,517,587. Expenses of business-type activities were $15,472,252. Capital grants and contributions were not received in the water, solid waste, sewer, and power activities to finance capital improvements. The costs of capital improvements are reported as capital assets in the statement of net position, rather than as expenses in the statement of activities. FINANCIAL ANALYSIS OF THE FUND STATEMENTS The City uses fund accounting to assure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the City’s government, reporting the City’s operations in more detail than the government-wide financial statements. The City’s governmental funds provide information on near-term inflows, outflows and balances of spendable resources. The City’s governmental funds reported combined fund balances at June 30, 2019 of $36,348,520, an increase of $205,897 from the previous fiscal year. Within the change of combined fund balances, the General Fund decreased by $630,383, related to a purchase of property. City of San Jacinto Fund Financial Statements - Fund Balances As of June 30, 2019 and 2018 (in thousands) Percent 2019 2018 Change Nonspendable: Prepaids $ 50 $ 73 ‐31.01% Advances receivable - 4 0 ‐100.00% Total nonspendable fund balances 50 113 ‐55.43% Restricted: Land held for resale 340 340 0.00% Advances receivable 9,624 10,911 ‐11.80% Special revenue funds 21,385 17,516 22.09% Total restricted fund balances 31,349 28,767 8.97% Assigned: Capital projects funds 1,598 1,622 ‐1.45% Total assigned fund balances 1,598 1,622 ‐1.45% Unassigned: General fund 7,125 8,865 ‐19.63% Special revenue funds (3,774) (3,224)17.05% Total unassigned fund balances 3,351 5,641 ‐40.59% Total fund balance $ 36,349 $ 36,143 0.57% Final Draft 2/27/2020 4.1.a Packet Pg. 118 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June CITY OF SAN JACINTO MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019 -9- General Fund Budgetary Highlights Over the course of the year, the City revised the City budget with adjustments for revenue and expenditure appropriations approved after the original budget was adopted. Certain capital project appropriations originally budgeted but not expended in fiscal year 2018 were re-appropriated in 2019 as part of the City’s capital budget. After taking into account these adjustments, actual expenditures were $1,231,874 over the final budget amounts, attributable to excess expenditures in capital outlay, due to a purchase of property. Resources available for appropriation were $670,461 more than the final budgeted amount, primarily due to increases in almost all revenue categories from overall activity. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets As of June 30, 2019, the City had invested $120,262,288 in a broad range of capital assets, including police and fire equipment, buildings, parks and park improvements, roads, bridges, and water, solid waste and sewer utility systems. City of San Jacinto Capital Assets As of June 30, 2019 and 2018 (net of depreciation, in thousands) 2019 2018 2019 2018 2019 2018 Capital assets not being depreciated: Land and improvements 5,793$ 4,890$ 55$ 55$ 5,848$ 4,945$ Construction in progress 6,856 6,047 - 423 6,856 6,470 Depreciable capital assets, net of accumulated depreciation: Buildings and system 4,503 4,675 3,704 3,839 8,207 8,514 Machinery and equipment 1,203 609 4,132 4,045 5,335 4,654 Improvements other than buildings 1,972 2,158 5,528 5,328 7,500 7,486 Infrastructure 86,517 87,772 - - 86,517 87,772 Total 106,844$ 106,151$ 13,418$ 13,690$ 120,262$ 119,841$ Governmental Business-type Activities Activities Total Final Draft 2/27/2020 4.1.a Packet Pg. 119 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June CITY OF SAN JACINTO MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019 -10- This year’s major capital asset additions included: Government-wide, governmental activities:  Two road improvement projects completed at a final cost of $2,172,114  LED street light retrofit at a final cost of $1,694,088  New CIP projects of $3,830,359 Government-wide, business-type activities:  Waterline major improvements project completed at a total cost of $325,725  Construction of Almaden Tract project completed at a total cost of $340,668  New pump for Lake Park at a total cost of $226,353 More detailed information about the City’s capital assets is presented in Note 3 to the financial statements. Long-term Liabilities At June 30, 2019, the City had $9,485,211 in long-term liabilities outstanding. More detailed information about the City’s total long-term liabilities is presented in Note 6 to the financial statements. City of San Jacinto Outstanding Liabilities As of June 30, 2019 and 2018 (in thousands) 2019 2018 2019 2018 2019 2018 Revenue and other bonds, net 623$ 879$ -$ -$ 623$ 879$ Special assessment debt with government commitment, including unpaid interest 1,084 1,084 - - 1,084 1,084 Loans payable - direct borrowing 2,171 - 4,158 4,803 6,329 4,803 Capital leases 494 - 418 - 912 - Claims and judgments 174 317 - - 174 317 Compensated absences 295 250 68 63 363 313 Total 4,841$ 2,530$ 4,644$ 4,866$ 9,485$ 7,396$ Governmental Business-type Activities Activities Total Final Draft 2/27/2020 4.1.a Packet Pg. 120 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June CITY OF SAN JACINTO MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019 -11- ECONOMIC FACTORS AND NEXT YEAR’S BUDGET Several years after “the Great Recession,” the City has seen some very positive signs. Residential development and home sales have increased dramatically to its best numbers in a decade. Commercial development has returned as well, with subsequent years of several projects scheduled to open. The City’s ordinances on marijuana cultivation were loosened, and still hope to add much needed revenues, which in turn will fund additional public safety staffing. Public safety costs still continue to increase, although with a new cost-minded County Sheriff, hopefully those increases will not be unsustainable. The City continues to focus on potential commercial growth, bringing the businesses necessary for the residents of the City. The General Fund budget for 2019-2020 appropriates $24,629,844 in operating and capital expenditures, an increase of 4.6 percent from the prior year, primarily due to public safety costs. City utility rates for water were last increased by 5% in July 2009, and sewer rates were increased 3% in July 2011; however, a rate study for both will be completed in fiscal year 2019-2020. In March 2014, the City's solid waste enterprise was taken over by the franchised operator. In April 2018, the City started operations as a Community Choice Aggregator (CCA), providing its citizens and businesses with an alternative to the major electric utility for electricity generation, with a greater focus on renewable energy sources at a discounted rate. Fiscal year 2018-19 was first full year of implementation. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances, and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City of San Jacinto Department of Finance, Accounting Division, PO Box 488, San Jacinto, California 92581, or visit the City’s web page at www.sanjacinto.gov. Final Draft 2/27/2020 4.1.a Packet Pg. 121 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June Basic Financial Statements Final Draft 2/27/2020 4.1.a Packet Pg. 122 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June Government-Wide Financial Statements Final Draft 2/27/2020 4.1.a Packet Pg. 123 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -12- City of San Jacinto Statement of Net Position June 30, 2019 Governmental Business-Type Activities Activities Total ASSETS Cash and investments 36,462,417$ 6,412,598$ 42,875,015$ Receivables, net: Accounts 389,890 2,545,018 2,934,908 Interest 432,409 - 432,409 Taxes 1,280,799 - 1,280,799 Cash and investments with fiscal agents, restricted 962,116 417,782 1,379,898 Notes receivable 3,214,470 - 3,214,470 Due from other governments 2,330,882 - 2,330,882 Deposits with others 966,980 - 966,980 Prepaids 51,834 10,597 62,431 Internal balances 603,981 (603,981) - Inventories - 62,505 62,505 Land held for resale 339,807 - 339,807 Capital assets: Land and construction in progress 12,649,093 55,222 12,704,315 Other capital assets, net of depreciation 94,194,829 13,363,144 107,557,973 Total assets 153,879,507 22,262,885 176,142,392 DEFERRED OUTFLOWS OF RESOURCES Loss on retirement of bonds - 36,930 36,930 Pension related 2,485,727 627,004 3,112,731 Total deferred outflows of resources 2,485,727 663,934 3,149,661 LIABILITIES Accounts payable and accrued liabilities 3,904,431 1,866,497 5,770,928 Accrued wages 225,337 60,449 285,786 Accrued interest payable 105,544 53,626 159,170 Due to other governments 185,982 - 185,982 Retention payable 59,991 - 59,991 Unearned revenues 59,355 - 59,355 Deposits payable - 368,016 368,016 Noncurrent liabilities: Due within one year 934,367 373,563 1,307,930 Due in more than one year 3,907,104 4,270,177 8,177,281 Net pension liability 9,414,396 2,040,099 11,454,495 Total liabilities 18,796,507 9,032,427 27,828,934 DEFERRED INFLOWS OF RESOURCES Pension related 1,070,261 169,545 1,239,806 NET POSITION Net investment in capital assets 104,656,021 9,260,092 113,916,113 Restricted for: Public safety 1,190,658 - 1,190,658 Public works 16,284,919 - 16,284,919 Community development 8,237,049 - 8,237,049 Culture and leisure 75,122 - 75,122 Capital asset financing 476,725 - 476,725 Unrestricted 5,577,972 4,464,755 10,042,727 Total net position 136,498,466$ 13,724,847$ 150,223,313$ Primary Government Final Draft 2/27/2020 4.1.a Packet Pg. 124 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -13- City of San Jacinto Statement of Activities For the Year Ended June 30, 2019 Operating Capital Charges for Contributions Contributions Functions/Programs Expenses Services and Grants and Grants Primary government Governmental activities: General government 3,157,371$ -$ 2,529,698$ 12,000$ Public safety 14,998,629 3,673,772 464,806 - Public works 8,935,268 210,006 2,896,884 1,314,111 Community development 7,475,180 2,796,979 690,805 5,346,556 Culture and leisure 756,152 - - - Interest on long-term debt 193,199 - - - Total governmental activities 35,515,799 6,680,757 6,582,193 6,672,667 Business-type activities: Water 4,181,211 7,475,817 - - Sewer 1,012,468 1,046,650 - - Power 10,278,115 9,996,516 - - Non-major 458 (1,396) - - Total business-type activities 15,472,252 18,517,587 - - Total 50,988,051$ 25,198,344$ 6,582,193$ 6,672,667$ General revenues: Taxes: Property tax, levied for general purpose Property tax in-lieu of motor vehicle in lieu tax Transient occupancy taxes Franchise tax Sales tax Other taxes Unrestricted investment earnings Other Transfers Total general revenues Change in net position Net position, beginning of year, as restated (Note 15) Net position, end of year Program Revenues Final Draft 2/27/2020 4.1.a Packet Pg. 125 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -14- Continued Governmental Business-Type Activities Activities Total (615,673)$ -$ (615,673)$ (10,860,051) - (10,860,051) (4,514,267) - (4,514,267) 1,359,160 - 1,359,160 (756,152) - (756,152) (193,199) - (193,199) (15,580,182) - (15,580,182) - 3,294,606 3,294,606 - 34,182 34,182 - (281,599) (281,599) - (1,854) (1,854) - 3,045,335 3,045,335 (15,580,182) 3,045,335 (12,534,847) 3,044,148 - 3,044,148 3,625,396 - 3,625,396 44,400 - 44,400 2,107,556 - 2,107,556 3,506,461 - 3,506,461 205,460 - 205,460 993,171 90,538 1,083,709 267,524 - 267,524 (1,854) 1,854 - 13,792,262 92,392 13,884,654 (1,787,920) 3,137,727 1,349,807 138,286,386 10,587,120 148,873,506 136,498,466$ 13,724,847$ 150,223,313$ Net Revenue (Expense) and Change in Net Position Primary Government Final Draft 2/27/2020 4.1.a Packet Pg. 126 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June Fund Financial Statements Final Draft 2/27/2020 4.1.a Packet Pg. 127 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -15- City of San Jacinto Governmental Funds Balance Sheet June 30, 2019 Capital Projects Special Revenue City Community Capital Facilities General Projects District 2003 ASSETS Cash and investments 6,935,155$ 6,660,577$ -$ Restricted cash with fiscal agent 962,116 - - Receivables, net: Accounts 242,737 - - Interest 237,813 - - Taxes and assessments 75,504 - 35,926 Notes 200,000 - - Prepaids 50,360 - - Deposits 160,000 - - Due from other governments 652,544 - - Due from other funds 1,706,392 - - Advances receivable 5,937,601 - - Land held for resale - - - Total assets 17,160,222$ 6,660,577$ 35,926$ LIABILITIES Accounts payable 2,636,154$ 253,608$ 668,199$ Accrued payroll 204,374 - - Retention payable - 59,991 - Due to other funds - - - Due to other governments - 41,405 - Unearned revenue 2,700 - - Advances payable - 6,305,573 2,356,332 Total liabilities 2,843,228 6,660,577 3,024,531 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 242,034 - - FUND BALANCES Nonspendable 50,360 - - Restricted 6,899,717 - - Assigned - - - Unassigned 7,124,883 - (2,988,605) Total fund balances (deficit)14,074,960 - (2,988,605) Total liabilities, deferred inflows of resources and fund balances 17,160,222$ 6,660,577$ 35,926$ Final Draft 2/27/2020 4.1.a Packet Pg. 128 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -16- Continued Successor Total Non-Major Total Housing Assessment Governmental Governmental Authority LLPD #2 District 2003-01 Funds Funds 167,147$ 7,738,631$ 5,901,962$ 8,974,601$ 36,378,073$ - - - - 962,116 - - - 91,704 334,441 194,596 - - - 432,409 - 57,145 15,186 1,097,038 1,280,799 3,014,470 - - - 3,214,470 - - - - 50,360 - - - - 160,000 - - - 1,678,338 2,330,882 - - - - 1,706,392 - - - 2,724,304 8,661,905 339,807 - - - 339,807 3,716,020$ 7,795,776$ 5,917,148$ 14,565,985$ 55,851,654$ 620$ 162,370$ -$ 112,056$ 3,833,007$ - - - 13,460 217,834 - - - - 59,991 - 3,442 - 1,037,629 1,041,071 - - 449 144,128 185,982 - - - 56,655 59,355 - - - - 8,661,905 620 165,812 449 1,363,928 14,059,145 3,209,066 - - 1,992,889 5,443,989 - - - - 50,360 506,334 7,629,964 5,916,699 10,395,805 31,348,519 - - - 1,598,499 1,598,499 - ‐ ‐ (785,136) 3,351,142 506,334 7,629,964 5,916,699 11,209,168 36,348,520 3,716,020$ 7,795,776$ 5,917,148$ 14,565,985$ 55,851,654$ Special Revenue Final Draft 2/27/2020 4.1.a Packet Pg. 129 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -17- City of San Jacinto Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2019 Fund balance of governmental funds 36,348,520$ Amounts reported for governmental activities in the Statement of Net Position are different because: Net investment in capital assets have not been included as financial resources in governmental funds. Capital assets not being depreciated 12,649,093 Capital assets being depreciated 209,018,889 Accumulated depreciation (114,824,060) Long-term liabilities applicable to governmental activities are not due and payable in the current period and, accordingly, are not reported as governmental fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Compensated absences (295,167) Special assessment debt and unmatured interest (1,084,259) Pension obligation bonds (623,300) Loans/Leases payable (2,664,626) Accrued interest payable (105,544) Net pension liability (9,414,396) Unavailable revenue balances relating to various accounts and loans receivable are not reported as unavailable revenue in the Statement of Net Position since recognition is not based upon measurable and available criteria. Various other amounts 730,701 Low and moderate housing loans receivable 3,209,066 Accrued interest on low and moderate housing loans 194,596 Special assessments receivable 1,084,259 Pension related deferred outflows and inflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. Deferred outflows of resources - pension related items 2,485,727 Deferred inflows of resources - pension related items (1,070,261) Internal Service Funds are used by management to charge costs of certain activities on individual funds. The assets and liabilities of the Internal Service Funds must be added to the Statement of Net Position since revenue recognition is not based upon measurable and available criteria. Fund Net Position of Internal Service Funds 633,861 Net position of governmental activities 136,273,099$ Final Draft 2/27/2020 4.1.a Packet Pg. 130 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -18- City of San Jacinto Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2019 Capital Projects Special Revenue City Community Capital Facilities General Projects District 2003 REVENUES Taxes 8,439,156$ -$ -$ Assessments - - 2,416,067 Licenses and permits 1,412,183 - - Fines and forfeitures 208,767 - - Development fees 179,113 - - Intergovernmental 4,035,443 - - Charges for services 651,336 - - Investment earnings 951,016 - - Other/overhead allocations 3,201,616 - - Total revenues 19,078,630 - 2,416,067 EXPENDITURES Current: General government 2,579,685 - 26,689 Public safety 11,708,351 - 3,032,772 Public works 870,317 - - Community development 3,037,390 - - Culture and leisure 92,706 - - Debt service: Principal 255,426 - - Interest 39,197 - 59,349 Capital outlay 2,322,108 4,561,250 - Total expenditures 20,905,180 4,561,250 3,118,810 Excess (deficiency) of revenues over (under) expenditures (1,826,550) (4,561,250) (702,743) OTHER FINANCING SOURCES (USES) Proceeds from the sale of property 12,000 - - Proceeds from loan 2,664,626 - - Transfers in 851,466 4,561,250 218,737 Transfers out (2,331,925) - - Total other financing sources (uses)1,196,167 4,561,250 218,737 Net change in fund balances (630,383) - (484,006) Fund balances (deficit), beginning of year 14,705,343 - (2,504,599) Fund balances (deficit), end of year 14,074,960$ -$ (2,988,605)$ Final Draft 2/27/2020 4.1.a Packet Pg. 131 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -19- Continued Successor Total Non-Major Total Housing Assessment Governmental Governmental Authority LLPD #2 District 2003-01 Funds Funds -$ -$ -$ 304,528$ 8,743,684$ - 3,901,808 928,161 674,398 7,920,434 - - - - 1,412,183 - - - 533,872 742,639 - 4,688 - 785,108 968,909 4,204 - - 3,625,952 7,665,599 - - - - 651,336 20,928 107,548 87,545 188,019 1,355,056 - 550 - 375,758 3,577,924 25,132 4,014,594 1,015,706 6,487,635 33,037,764 4,396 - - 5,571 2,616,341 - - - 45,932 14,787,055 - - 40,616 2,160,076 3,071,009 - 3,476,700 - 364,832 6,878,922 - - - 653,193 745,899 - - - - 255,426 - - - - 98,546 - - 6,033 146,994 7,036,385 4,396 3,476,700 46,649 3,376,598 35,489,583 20,736 537,894 969,057 3,111,037 (2,451,819) - - - - 12,000 - - - - 2,664,626 - - - 11,432 5,642,885 - - - (3,329,870) (5,661,795) - - - (3,318,438) 2,657,716 20,736 537,894 969,057 (207,401) 205,897 485,598 7,092,070 4,947,642 11,416,569 36,142,623 506,334$ 7,629,964$ 5,916,699$ 11,209,168$ 36,348,520$ Special Revenue Final Draft 2/27/2020 4.1.a Packet Pg. 132 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -20- City of San Jacinto Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2019 Net change in fund balances - total governmental funds 205,897$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense or allocated to the appropriate functional expense when the cost is below the capitalization threshold. Additionally, capital contributions are reported as program revenues in the Statement of Activities. This activity is reconciled as follows: Cost of assets capitalized less disposals 6,356,911 Depreciation expense (5,663,738) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the fund.679,969 Long-term debt proceeds provide current financial resources to Governmental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. Principal repayments of long-term debt are expenditures/uses in the Governmental Funds, but they reduce long-term liabilities in the Government-Wide Statement of Net Position. Repayments: 2014 pension obligation bonds 255,426 Issuance: Loan proceeds (2,664,626) Some expenses reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in the governmental funds. Change in compensated absences (45,312) Change in accrued interest payable (94,653) Pension expense net of adjustments (980,099) Internal Service Funds are used by management to charge the cost of insurance to individual funds. The net revenue of the Internal Service Funds are reported with governmental activities.162,305 Change in net position of governmental activities (1,787,920)$ Final Draft 2/27/2020 4.1.a Packet Pg. 133 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -21- City of San Jacinto Statement of Net Position Proprietary Funds June 30, 2019 Water Sewer ASSETS Current assets: Cash and investments 3,641,574$ 2,771,024$ Receivables, net: Accounts 573,503 293,148 Deposits with others - - Inventories 62,505 - Prepaid expenses 5,646 4,951 Total current assets 4,283,228 3,069,123 Non-current assets: Cash and investments with fiscal agents, restricted - 417,782 Capital assets: Land 55,222 - Building and system 6,747,489 31,301 Machinery and equipment 6,494,464 705,324 Improvements other than buildings 6,151,834 3,818,840 Less accumulated depreciation (8,423,779) (2,175,923) Total non-current assets 11,025,230 2,797,324 Total assets 15,308,458 5,866,447 DEFERRED OUTFLOWS OF RESOURCES Loss on retirement of bonds 36,930 - Pension related 418,002 209,002 Total deferred outflows of resources 454,932 209,002 LIABILITIES Current liabilities: Accounts payable 318,467 230,908 Accrued wages 33,213 23,384 Accrued interest 53,626 - Deposits payable 368,016 - Due to other funds - - Long term liabilities, current portion 296,255 77,308 Total current liabilities 1,069,577 331,600 Non-current liabilities: Claims payable - - Long term liabilities, net of current portion 3,899,197 361,857 Net pension liability 1,360,066 680,033 Total non-current liabilities 5,259,263 1,041,890 Total liabilities 6,328,840 1,373,490 DEFERRED INFLOWS OF RESOURCES Pension related 113,030 56,515 NET POSITION Net investment in capital assets 6,866,956 2,379,542 Unrestricted 2,454,564 2,265,902 Total net position 9,321,520$ 4,645,444$ Business-type Activities Enterprise Funds Final Draft 2/27/2020 4.1.a Packet Pg. 134 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -22- Continued Governmental Activities - Internal Power Non-Major Total Service Fund -$ -$ 6,412,598$ 84,344$ 1,674,155 4,212 2,545,018 55,449 - - - 806,980 - - 62,505 - - - 10,597 1,474 1,674,155 4,212 9,030,718 948,247 ‐ - 417,782 - - - 55,222 - - - 6,778,790 - 14,564 - 7,214,352 - - - 9,970,674 - (970) - (10,600,672) - 13,594 - 13,836,148 - 1,687,749 4,212 22,866,866 948,247 ‐ - 36,930 - ‐ - 627,004 - - - 663,934 - 1,317,122 - 1,866,497 71,424 3,852 - 60,449 7,503 - - 53,626 - - - 368,016 - 599,769 4,212 603,981 61,340 - - 373,563 - 1,920,743 4,212 3,326,132 140,267 - - - 174,119 9,123 - 4,270,177 - - - 2,040,099 - 9,123 - 6,310,276 174,119 1,929,866 4,212 9,636,408 314,386 - - 169,545 - 13,594 - 9,260,092 - (255,711) - 4,464,755 633,861 (242,117)$ -$ 13,724,847$ 633,861$ Business-type Activities Enterprise Funds Final Draft 2/27/2020 4.1.a Packet Pg. 135 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -23- City of San Jacinto Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2019 Water Sewer OPERATING REVENUES Sales and charges for services 3,755,496$ 913,063$ Miscellaneous/sale of ground water 3,720,321 133,587 Total operating revenues 7,475,817 1,046,650 OPERATING EXPENSES Personnel services 510,266 307,988 Employee benefits 350,770 201,253 Office expense & field supplies 170,523 25,521 Depreciation 763,949 164,588 Outside services 257,242 108,028 Repairs and maintenance 73,388 14,561 Utilities 293,568 3,692 Franchise - - Overhead allocations 699,458 186,837 Watermaster charges 905,158 - Energy purchases - - Claims and judgements - - Total operating expenses 4,024,322 1,012,468 Operating income (loss)3,451,495 34,182 NON-OPERATING REVENUES (EXPENSES) Investment earnings 45,371 45,167 Interest and fiscal charges (156,890) - Total non-operating revenues (expenses)(111,519) 45,167 Other income before transfers 3,339,976 79,349 Transfers in - - Transfers out - - Change in net position 3,339,976 79,349 Net position (deficit), beginning of year 5,981,544 4,566,095 Net position, end of year 9,321,520$ 4,645,444$ Enterprise Funds Business-type Activities Final Draft 2/27/2020 4.1.a Packet Pg. 136 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -24- Continued Governmental Activities - Internal Power Non-Major Total Service Fund 9,996,516$ (1,396)$ 14,663,679$ 869,364$ - - 3,853,908 51,104 9,996,516 (1,396) 18,517,587 920,468 88,874 - 907,128 123,685 26,524 - 578,547 44,173 18,535 - 214,579 13,170 970 929,507 - 698,310 416 1,063,996 367,327 - - 87,949 212,916 - - 297,260 1,749 - 42 42 - 11,723 - 898,018 - - - 905,158 - 9,433,179 - 9,433,179 - - - - 12,199 10,278,115 458 15,315,363 775,219 (281,599) (1,854) 3,202,224 145,249 - - 90,538 - - - (156,890) - - - (66,352) - (281,599) (1,854) 3,135,872 145,249 - 1,854 1,854 67,056 - - - (50,000) (281,599) - 3,137,726 162,305 39,482 - 10,587,121 471,556 (242,117)$ -$ 13,724,847$ 633,861$ Business-type Activities Enterprise Funds Final Draft 2/27/2020 4.1.a Packet Pg. 137 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -25- City of San Jacinto Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2019 Water Sewer CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 7,630,134$ 1,011,286$ Cash payments to suppliers (2,246,346) (293,498) Cash payments to employees for services (811,021) (482,660) Net cash provided by (used for) operating activities 4,572,767 235,128 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - - Due (to) from other funds - - Net cash provided by non-capital financing activities - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition or construction of capital assets (508,527) (149,528) Proceeds from loan - 417,782 Bond principal paid (644,105) - Interest and fiscal charges paid (153,557) - Net cash provided by (used for) capital and related financing activities (1,306,189) 268,254 CASH FLOWS FROM INVESTING ACTIVITIES Interest income received 45,371 45,167 Net cash provided by investing activities 45,371 45,167 Net change in cash and cash equivalents 3,311,949 548,549 Cash and cash equivalents, beginning of year 329,625 2,640,257 Cash and cash equivalents, end of year 3,641,574$ 3,188,806$ Reconciliation of cash and cash equivalents to amounts reported on the statement of net position: Reported on the statement of net position: Cash and investments 3,641,574$ 2,771,024$ Cash and investments with fiscal agents, restricted - 417,782 Totals 3,641,574$ 3,188,806$ Business-type Activities - Enterprise Funds Final Draft 2/27/2020 4.1.a Packet Pg. 138 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -26- Continued Governmental Activities - Internal Power Non-Major Total Service Fund 9,532,931$ 3,360$ 18,177,711$ 912,221$ (9,908,061) (3,537) (12,451,442) (805,376) (110,653) - (1,404,334) (165,427) (485,783) (177) 4,321,935 (58,582) - 1,854 1,854 17,056 485,783 (1,677) 484,106 12,712 485,783 177 485,960 29,768 - - (658,055) - - - 417,782 - - - (644,105) - - - (153,557) - - - (1,037,935) - - - 90,538 - - - 90,538 - - - 3,860,498 (28,814) - - 2,969,882 113,158 -$ -$ 6,830,380$ 84,344$ -$ -$ 6,412,598$ 84,344$ - - 417,782 - -$ -$ 6,830,380$ 84,344$ Business-type Activities - Enterprise Funds Final Draft 2/27/2020 4.1.a Packet Pg. 139 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -27- City of San Jacinto Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2019 Water Sewer Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss):3,451,495$ 34,182$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 763,949 164,588 Change in compensated absences (1,013) 638 (Increase) decrease in assets: Accounts receivable 68,388 (35,364) Inventories 6,734 - Prepaid expenses (2,461) (4,771) Deposits with others - - Due from other governments 76,681 - Deferred outflows of resources 37,139 18,568 Increase (decrease) in liabilities: Accounts payable 148,717 49,912 Accrued wages 1,509 1,185 Deposits payable 9,249 - Claims payable - - Deferred inflows of resources 64,564 32,282 Net pension liability (52,184) (26,092) Total adjustments 1,121,272 200,946 Net cash provided by (used for) operating activities 4,572,767$ 235,128$ Business-type Activities - Enterprise Funds Final Draft 2/27/2020 4.1.a Packet Pg. 140 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -28- Continued Governmental Activities - Internal Power Non-Major Total Service Fund (281,599)$ (1,854)$ 3,202,224$ 145,249$ 970 - 929,507 - 4,744 - 4,369 - (463,668) 1,677 (428,967) (8,247) - - 6,734 - - - (7,232) 33,470 - - - (74,048) - - 76,681 - - - 55,707 - 253,770 - 452,399 (14,120) - - 2,694 2,431 - - 9,249 - - - - (143,317) - - 96,846 - - - (78,276) - (204,184) 1,677 1,119,711 (203,831) (485,783)$ (177)$ 4,321,935$ (58,582)$ Enterprise Funds Business-type Activities - Final Draft 2/27/2020 4.1.a Packet Pg. 141 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June Fiduciary Funds Final Draft 2/27/2020 4.1.a Packet Pg. 142 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -29- City of San Jacinto Statement of Fiduciary Net Position Fiduciary Funds June 30, 2019 Private Purpose Trust Fund Agency ASSETS Cash and investments 336,240$ 6,542,162$ Cash and investments with fiscal agents 24 1,817,609 Receivables: Accounts - 142,908 Due from other governments 275,451 3,838 Property held for resale 53,672 - Capital assets: Land 220,227 - Building and system 103,636 - Less accumulated depreciation (39,382) - Total assets 949,868 8,506,517$ DEFERRED OUTFLOW OF RESOURCES Loss on refunding 9,699 LIABILITIES Accounts payable and accrued liabilities 125,870 286,327$ Deposits payable - 5,150,048 Due to bond holders - 3,070,142 Unearned revenue 89,918 - Long-term liabilities: Due within one year 285,000 - Due in more than one year 6,220,000 - Total liabilities 6,720,788 8,506,517$ NET POSITION Net position (deficit) held for dissolution of Redevelopment Agency (5,761,221)$ Final Draft 2/27/2020 4.1.a Packet Pg. 143 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June The accompanying notes are an integral part of these financial statements. -30- City of San Jacinto Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended to June 30, 2019 Private Purpose Trust Fund ADDITIONS Property taxes 252,386$ Investment earnings 6,421 Total additions 258,807 DEDUCTIONS Administrative payments 63,894 Interest expense 301,511 Depreciation 2,072 Total deductions 367,477 Change in net position (108,670) Net position (deficit), beginning of year (5,652,551) Net position (deficit), end of year (5,761,221)$ Final Draft 2/27/2020 4.1.a Packet Pg. 144 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June Notes to the Basic Financial Statements Final Draft 2/27/2020 4.1.a Packet Pg. 145 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -31- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Summary of significant accounting policies a. Reporting entity The City of San Jacinto (City) was incorporated on April 20, 1888 under the laws of the State of California and enjoys all the rights and privileges applicable to a general law city. It is governed by an elected five-member board. As required by generally accepted accounting principles, these financial statements present the City of San Jacinto (the primary government) and its component units. The component units discussed below are included in the reporting entity because of their operational or financial relationships with the City of San Jacinto. Blended component units: San Jacinto Financing Authority The Authority is a joint exercise of powers authority organized and existing under and by virtue of the Joint Exercise of Powers Act. The City formed the Authority by the execution of a joint exercise of powers agreement dated as of May 25, 1993, and amended and restated in its entirety on May 19, 1997 by and between the City and the former Redevelopment Agency. Pursuant to the Joint Powers Act, the Authority is authorized to issue revenue bonds to provide funds to make loans to public entities; such revenue bonds are to be repaid from the repayments of such loans. The Authority is governed by a five-member Board which consists of all members of the City Council. The Mayor of the City is the Chairperson of the Authority. The City Manager acts as the Executive Director, the City Clerk acts as the Secretary and the Finance Director of the City acts as the Treasurer of the Authority. Debts issued through the San Jacinto Financing Authority are expected to be repaid with City resources. Accordingly, separate financial statements for the Financing Authority are not prepared. Industrial Development Authority The Industrial Development Authority of the City of San Jacinto was activated by the City Council of the City of San Jacinto. The purpose of the Industrial Development Authority is to assist the community in industry development by providing a financing mechanism to encourage such development in the City. Separate financial statements for the Industrial Development Authority are not currently prepared. As the governing bodies of the San Jacinto Financing Authority and Industrial Development Authority are composed entirely of the council members of the City, the above component units were included within the scope of the reporting entity of the City. Final Draft 2/27/2020 4.1.a Packet Pg. 146 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -32- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 1: Summary of significant accounting policies (continued) b. Government-wide and fund financial statements The government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. Certain eliminations have been made as prescribed by generally accepted accounting principles 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. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely to a significant extent on user fees and charges for support. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions, including special assessments, that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenue are reported instead as general revenues. In the statement of activities, Internal Service Fund transactions have been eliminated; however, those transactions between the governmental and business-type activities have not been eliminated. Separate financial statements are provided for governmental, proprietary, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. c. Measurement focus, basis of accounting, and financial statement presentation The government-wide statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the cash flows. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, 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. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Final Draft 2/27/2020 4.1.a Packet Pg. 147 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -33- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 1: Summary of significant accounting policies (continued) c. Measurement focus, basis of accounting, and financial statement presentation (continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified-accrual basis of accounting. Under the modified-accrual basis of accounting, revenues are recognized in these funds when susceptible to accrual (i.e. when they are both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers property taxes collected after year-end, as available if they are collected within 60 days of the end of the current fiscal period. Other revenues susceptible to accrual include sales tax, state gasoline taxes, utility user’s tax, investment income, and certain other intergovernmental revenues. Expenditures in the governmental funds are generally recognized in the accounting period in which the related fund liability is incurred, if measurable, except for unmatured principal and interest on general long-term debt, as well as compensated absences and claims and judgments, which are recognized when due. The City reports the following major governmental funds: The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The City Capital Projects Fund is used to account for construction from various sources. The Community Facilities District 2003 Fund is used to account for the funding of increased public safety services in the District. The Successor Housing Authority Fund is used to account for the City's housing-related activities. The fund was established as the Housing Successor of the former Agency’s Low and Moderate Housing fund which was eliminated as of February 1, 2012. The LLPD #2 Special Revenue Fund is used to account for special assessment tax revenue activity in the City’s Districts, restricted for maintenance and service to District facilities. The Assessment District 2003-01 Special Revenue Fund is used to account for special assessment tax revenue activity in the City’s Districts, restricted for street maintenance and service to District facilities. The City reports the following major proprietary funds: The Water Fund is used to account for the provision of water services to the residences and businesses of part of the City. The Sewer Fund is used to account for the revenues and expenses in connection with the operation and improvement of the City's sewer system. Final Draft 2/27/2020 4.1.a Packet Pg. 148 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -34- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 1: Summary of significant accounting policies (continued) c. Measurement focus, basis of accounting, and financial statement presentation (continued) The Power Fund is used to account for the revenues and expenses in connection with the Community Choice Aggregation (CCA) program, which allows the City to purchase and generate electricity for residents and businesses within the City. Additionally, the City reports the following fund types: The Internal Service Funds are used to account for the resources, goods, and services that are provided by one department to other departments or agencies of the City on a cost-reimbursement basis. The City’s Internal Service Fund accounts for Workers Compensation and General Liability Insurance services. The Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the Redevelopment Agency to the City of San Jacinto. The fund's primary purpose is to expedite the dissolution of the former Agency's net position (except for the low and moderate income housing funds non-cash assets) in accordance with AB X1 26 and AB 1484. The Agency Funds are used to account for the resources held by the City in a fiduciary capacity. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America 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, and the City has adopted all pronouncements of the GASB. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues for the Enterprise Funds are charges for goods and services. Operating expenses for these same Enterprise Funds include the cost of sales and services, administration expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The City's fiduciary funds include Agency Funds, which are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Final Draft 2/27/2020 4.1.a Packet Pg. 149 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -35- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 1: Summary of significant accounting policies (continued) d. Accounting for encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental fund types. e. Cash and investments For the purpose of the statement of cash flows, the City considers cash and cash equivalents as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling cash and investments of all funds. Since cash and investments are pooled the City utilizes the assumption that cash and investments in the Enterprise and Internal Service Funds are cash and cash equivalents. f. Restricted cash and investments Cash and investments restricted as to their use either by bond resolution or by the funding source to a specific purpose are classified as restricted cash and investments. g. Inventories Inventories of materials and supplies are valued at cost using the first-in, first-out basis. The City uses the consumption method of accounting for inventories. h. Property held for resale The Successor Agency has property held for resale with a net realizable value of $53,672. i. Judgments and claims The City utilizes its internal service funds to account for judgments and claims. Self-insurance claims payable of $173,498 and $621, respectively, are recorded in the Workers’ Compensation and Liability Insurance funds. Final Draft 2/27/2020 4.1.a Packet Pg. 150 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -36- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 1: Summary of significant accounting policies (continued) j. Compensated absences In accordance with current standards, a liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement and are generally liquidated by the General Fund. Under current standards, a liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in payments upon termination. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee. In governmental funds, compensated absences (unpaid vacation and sick leave) are recorded as expenditures in the year they are paid. The balance of unpaid vacation and vested sick leave at year end is recorded in the government-wide financial statements as these amounts will be liquidated from future resources. Sick leave is payable when an employee is unable to work because of illness. Employees may accrue sick leave up to a maximum of 960 hours. There is a sick leave buyback program. An employee with 2 years of service may sell up to 96 hours of sick leave at the end of the calendar year. After 5 years of service, employees who voluntarily leave or are laid off may cash out sick leave upon separation from service. k. Interfund advances The City Capital Projects Fund accounts for the City capital projects expenditures. It is the City’s policy and practice to transfer cash (advance funds), even if not yet received, to the City Capital Projects Fund at the time of project commitment. Advances payable from the City Capital Projects Fund and receivable to the advancing fund, are recorded to reflect the outstanding amounts advanced at June 30, 2019. When funds are expended at the City’s Capital Projects Fund a transfer is recorded between the two funds and the advance is respectively relieved. l. Use of restricted resources When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as they are needed. Final Draft 2/27/2020 4.1.a Packet Pg. 151 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -37- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 1: Summary of significant accounting policies (continued) m. Use of estimates in the preparation of financial statements The financial statements have been prepared in accordance with generally accepted accounting principles and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. n. Capital assets Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. Capital assets (excluding infrastructure) are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Infrastructure assets are defined by the City as assets with an initial, individual cost of more than $50,000 and an estimated useful life in excess of two years. Such assets are capitalized at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of acquisition. Property, plant and equipment of the City is depreciated using the straight-line method over the following useful lives: Buildings 40 years Improvements 40 years Equipment 3 to 7 years Infrastructure 20 to 80 years o. Property tax calendar In 1978, a state constitutional amendment (Proposition 13) provided that the property tax rate be generally limited to 1% of market value, levied only by the county and shared with all other jurisdictions. The County of Riverside collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in March preceding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1st to June 30th. All secured personal property taxes and one-half of the taxes on real property are due November 1st; the second installment is due February 1st. All taxes are delinquent, if unpaid, on December 10th and April 10th respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31st. For governmental funds, City property tax revenues are recognized when levied to the extent that they result in current receivables collectible within 60 days. In the government-wide statements, revenues are recognized in the year taxes are levied. Final Draft 2/27/2020 4.1.a Packet Pg. 152 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -38- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 1: Summary of significant accounting policies (continued) p. Pension plan 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 Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the 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. For this report, the following timeframes are used. Valuation Date June 30, 2017 Measurement Date June 30, 2018 Measurement Period July 1, 2017 to June 30, 2018 q. Fund balance Fund balance is classified into five different components. The components are nonspendable, restricted, committed, assigned, and unassigned.  Nonspendable - resources that are not in spendable form or required to be maintained intact such as an endowment.  Restricted - resources that are subject to externally enforceable legal restrictions; these restrictions are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation.  Committed - resources that are constrained to specific purposes by a formal action of the City Council such as an ordinance or resolution, whichever is the higher level of constraint. The constraint remains binding unless removed in the same formal manner by the City Council. Council action to commit fund balance must occur within the fiscal reporting period while the amount committed may be determined subsequently.  Assigned - resources that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed.  Unassigned - within the General Fund, the residual resources, either positive or negative, in excess of what can be properly classified in one of the other four fund balance categories. Within all other governmental funds, any negative residual resources. Final Draft 2/27/2020 4.1.a Packet Pg. 153 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -39- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 1: Summary of significant accounting policies (continued) q. Fund balance (continued) When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to first apply committed fund balance, then assigned fund balance, and finally unassigned fund balance. Those charged with governance approved the Finance Director to have authority to assign unrestricted fund balance amounts where the City’s intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements. r. Deferred outflows/inflows of resources In addition to assets, the statement of financial position (balance sheet) will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position (balance sheet) will sometimes report a separate section for deferred inflows of resources. This separate financial element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. s. Prepaid expenses Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than purchased. Final Draft 2/27/2020 4.1.a Packet Pg. 154 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -40- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Note 1: Summary of significant accounting policies (continued) a. Budgetary principles General budget policies The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public meetings are conducted prior to its adoption by the Council. Supplemental appropriations, where required during the period, are also approved by the Council. Several supplemental appropriations were made during the year. Intrafund budget changes are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the department level. At fiscal year-end all unencumbered operating budget appropriations lapse with the exception of continuing appropriations. General Fund expenditures may not legally exceed budgeted appropriations. Budgeted revenue amounts, as presented in the accompanying basic financial statements, represent the original budget as modified by adjustments during the year for those items which were contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year. b. Excess of expenditures over appropriations Excess of expenditures over appropriations by department in individual funds with budgets presented are as follows: Final Budget Expenditures Excess General Fund by Function: General Government 2,485,020$ 2,579,685$ (94,665)$ Public Works 534,417 870,317 (335,900) Culture and Leisure 70,068 92,706 (22,638) Capital Outlay 619,521 2,322,108 (1,702,587) Community Facilities District 2003 by Function: General Government 26,500 26,689 (189) Interest 20,000 59,349 (39,349) Governmental Funds - Major Fund Final Draft 2/27/2020 4.1.a Packet Pg. 155 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -41- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 1: Summary of significant accounting policies (continued) c. Negative fund balance and other disclosures The following funds had negative fund balances at June 30, 2019: Amount Special revenue: Community Facilities District 2003 (2,988,605)$ Special revenue: CDBG (109,745) Capital projects: Flood Control (170,531) TUMF Capital Projects (22,370) Debt service: Assessment District 87-1 (454,847) Power (242,117) Proprietary Funds - Major Funds Governmental Funds - Non-Major Funds Governmental Funds - Major Funds The City plans to eliminate negative fund balance in the Community Facilities District 2003 fund (currently covered by a loan from the General Fund) with increased revenues from future growth, decreased future expenditures, and paying off the loan from the General Fund. The City plans to eliminate negative fund balance in the CDBG, Flood Control and TUMF Capital Projects funds with future cost reimbursements. The City plans to eliminate negative fund balance in the Assessment District 87-1 fund with the receipt of delinquent property taxes due to the sale of parcels, the possible acceptance of a future Bond Tender offer, and a transfer from the General Fund for administrative expenses not recovered. 2018-2019 was the first full year of implementation for the Power fund, and the City expects increased revenues and decreased expenditures in subsequent years. Final Draft 2/27/2020 4.1.a Packet Pg. 156 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -42- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 III. DETAIL NOTES ON ALL FUNDS Note 2: Cash and investments Cash and investments as of June 30, 2019 are classified in the accompanying financial statements as follows: Statement of Net Position Governmental activities: Cash and investments 36,462,417$ Cash and investments with fiscal agents 962,116 Business-Type Activities: Cash and investments 6,412,598 Cash and investments with fiscal agents 417,782 Total 44,254,913 Statement of Fiduciary Net Position: Cash and investments 6,878,402 Cash and investments with fiscal agents 1,817,633 Total 8,696,035 Total cash and investments 52,950,948$ Cash and investments are comprised of the following: Demand accounts/money market account 11,592,894$ Cash on hand 6,050 Investments 41,352,004 Total 52,950,948$ The City follows the practice of pooling cash and investments for all funds except for funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated monthly by the City to the various funds based on the month-end cash balance. Interest income from cash and investments with fiscal agent is credited directly to the related fund. Investments authorized by the California Government Code and the City’s investment policy The table on the following page identifies the investment types that are authorized for the City’s investment policy. The table also identifies certain provisions of the City’s investment policy that address interest rate risk, credit risk and concentration of credit risk. 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. Final Draft 2/27/2020 4.1.a Packet Pg. 157 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -43- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 2: Cash and investments (continued) Investments authorized by the California Government Code and the City’s investment policy, (continued) Maximum Maximum Investment Types Maximum Percentage Investment Authorized by State Law Maturity Allowed*in One Issuer U.S. Treasury Obligations 5 years None None U.S. Agency Securities 5 years None None Commercial Paper 270 days 25%5% Negotiable Certificates of Deposit 5 years 30%5% Repurchase Agreements 1 year None None Medium-Term Corporate Notes 5 years 30%5% Money Market Mutual Funds N/A 20%None Mutual Funds N/A 18%None Time Deposits N/A 20%None Local Agency Investment Fund (LAIF) N/A 70%65,000,000$ California Asset Management Program N/A 50%None *Based on state law requirements or investment policy requirements, whichever is more restrictive. Investments authorized by debt agreements Provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy govern investment of debt proceeds held by bond trustees. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity Allowed in One Issuer U.S. Treasury Obligations None None None U.S. Agency Securities None None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None Investment Agreements None None None Certificates of Deposit, Savings Account None None None Municipal Obligations None None None Repurchase Agreements None None None Local Agency Investment Fund (LAIF)None None 65,000,000$ Final Draft 2/27/2020 4.1.a Packet Pg. 158 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -44- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 2: Cash and investments (continued) Disclosures relating to interest rate risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. 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 trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity: Investment Type Totals 12 or Less 13 to 24 25 to 60 More than 60 Local Agency Investment Fund (LAIF)19,918,437$ 19,918,437$ -$ -$ -$ U.S. Treasury Obligations 9,714,200 318,139 3,380,295 6,015,766 - U.S. Agency Securities 6,271,947 2,073,935 1,752,540 2,445,472 - Asset-Backed Securities 634,089 199,880 108,199 326,010 - Commercial Paper 198,575 198,575 - - - Medium-Term Corporate Notes 4,463,218 2,424,207 1,035,619 1,003,392 - Held by Bond Trustees: Money Market Funds 151,538 151,538 - - - Total 41,352,004$ 25,284,711$ 6,276,653$ 9,790,640$ -$ Remaining Maturity (In Months) Final Draft 2/27/2020 4.1.a Packet Pg. 159 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -45- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 2: Cash and investments (continued) Disclosures relating to credit risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization (Standard & Poor’s). Presented below is the minimum rating required by (where applicable) the City’s investment policy or debt agreements, and the actual rating as of year-end for each investment type. Minimum Investment Type Totals legal rating AAA to AA- A+ to B Not rated Local Agency Investment Fund (LAIF)19,918,437$ N/A -$ -$ 19,918,437$ U.S. Treasury Obligations 9,714,200 N/A 9,714,200 - - U.S. Agency Securities 6,271,947 N/A 6,271,947 - - Asset Backed Securities 634,089 AA 282,913 - 351,177 Commercial Paper 198,575 A/A1 - 198,574 - Medium-Term Corporate Notes 4,463,218 A 2,057,848 2,405,372 - Held by Bond Trustees: Money Market Funds 151,538 AAA 151,538 - - Total 41,352,004$ 18,478,446$ 2,603,946$ 20,269,614$ Rating as of year end Concentration of credit risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City had no investments in any one issuer (other than U.S. Treasury Securities, mutual funds and external investment pools) that represented 5% or more of total City investments. Final Draft 2/27/2020 4.1.a Packet Pg. 160 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -46- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 2: Cash and investments (continued) Custodial credit risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits, and other eligible securities as defined by Government Code Sections 53651 and 53652. At June 30, 2019, the City's bank balances held in the financial institutions (Bank of Hemet, Rabobank, and River City Bank) were $8,733,148, $697,637 and $641,614, respectively. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a City’s indirect investment in securities through the use of mutual funds or government investment pools, including LAIF. Pursuant to the agreement with financial institutions where certificates of deposit are held, the securities pledged are consistent with the collateral as noted in the previous paragraph held by the financial institutions custodian but not in the City’s name. Investment in investment pools The City is a voluntary participant in LAIF which is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by 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. LAIF is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee comprised of California State officials and various participants provide oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's office. The City is a voluntary participant in the investment pool. LAIF allows a total investment of $65,000,000. Final Draft 2/27/2020 4.1.a Packet Pg. 161 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -47- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 2: Cash and investments (continued) Fair value of investments The City reports its investments at fair value, or amortized cost in the balance sheet. All investment income, including changes in the fair value of investments, is recognized, as revenue in the operating statement. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City uses the market approach in valuing its Level 1 and Level 2 investments. The City has the following recurring fair value measurements as of June 30, 2019: Total Level 1 Level 2 ABS 634,089$ -$ 634,089$ Agency 6,271,947 - 6,271,947 Commercial Paper 198,575 - 198,575 U.S. Corporate 4,463,218 - 4,463,218 U.S. Treasury 9,714,200 - 9,714,200 Total investments by fair value level 21,282,029 -$ 21,282,029$ Investments measured at Net Asset Value (NAV): Money market mutual funds 151,538 Investments measured at amortized cost: State investment pool 19,918,437 Total 41,352,004$ Fair Value Measurement Using Investments by Fair Value Level Final Draft 2/27/2020 4.1.a Packet Pg. 162 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -48- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 3: Capital assets Capital asset activity for the year ended June 30, 2019 was as follows: Balance at Balance at June 30, 2018 Additions Deletions June 30, 2019 Governmental activities: Capital assets not being depreciated: Land 4,890,215$ 903,000$ -$ 5,793,215$ Construction in progress 6,046,814 3,830,359 (3,021,295) 6,855,878 Total capital assets not being depreciated 10,937,029 4,733,359 (3,021,295) 12,649,093 Capital assets being depreciated: Building and system 7,104,119 - - 7,104,119 Machinery and equipment 5,192,544 776,592 (52,774) 5,916,362 Improvements other than building 4,417,809 11,014 - 4,428,823 Infrastructure 187,703,384 3,866,201 - 191,569,585 Total capital assets Being depreciated 204,417,856 4,653,807 (52,774) 209,018,889 Less accumulated depreciation for: Building and system (2,428,849) (172,117) - (2,600,966) Machinery and equipment (4,583,629) (173,520) 43,814 (4,713,335) Improvements other than building (2,260,147) (196,635) - (2,456,782) Infrastructure (99,931,511) (5,121,466) - (105,052,977) Total accumulated depreciation (109,204,136) (5,663,738) 43,814 (114,824,060) Total capital assets being depreciated, net 95,213,720 (1,009,931) (8,960) 94,194,829 Governmental activities capital assets, net 106,150,749$ 3,723,428$ (3,030,255)$ 106,843,922$ Final Draft 2/27/2020 4.1.a Packet Pg. 163 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -49- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 3: Capital assets (continued) Balance at Balance at Business-type activities:June 30, 2018 Additions Deletions June 30, 2019 Capital assets not being depreciated Land 55,222$ -$ -$ 55,222$ Construction in progress 422,689 289,513 (712,202) - Total capital assets not being depreciated 477,911 289,513 (712,202) 55,222 Capital assets being depreciated: Building and system 6,778,790 - - 6,778,790 Machinery and equipment 6,800,001 414,349 - 7,214,350 Improvements other than building 9,304,282 666,393 - 9,970,675 Total capital assets being depreciated 22,883,073 1,080,742 - 23,963,815 Less accumulated depreciation for: Building and system (2,940,096) (135,147) - (3,075,243) Machinery and equipment (2,754,927) (327,461) - (3,082,388) Improvements other than building (3,976,141) (466,899) - (4,443,040) Total accumulated depreciation (9,671,164) (929,507) - (10,600,671) Total capital assets being depreciated, net 13,211,909 151,235 - 13,363,144 Business-type activities capital assets, net 13,689,820$ 440,748$ (712,202)$ 13,418,366$ Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government 166,733$ Public safety 203,811 Public works 5,223,740 Community development 69,454 Total depreciation expense - governmental activities 5,663,738$ Business-type activities: Water 763,949$ Sewer 164,588 CCA - Power 970 Total depreciation expense - business-type activities 929,507$ Final Draft 2/27/2020 4.1.a Packet Pg. 164 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -50- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 4: Other assets Notes receivable Balance at June 30, 2019 a) In FY 2006-2007 and FY 2007-2008 the former Redevelopment Agency made a loan to a developer for a low and moderate income housing project. Amounts provided to the developer were for $1,238,225 and $1,061,775 in fiscal years 2007 and 2008, respectively. There are no annual set or structured payments. The promissory note will accrue interest at the rate of one percent per year simple interest and shall be repaid from the cash flow of the project and shall be due and payable by the expiration or termination of the affordability covenants which is 55 years from the completion of the project. The project was completed on October 2, 2008. Pursuant to AB XI 26, the Redevelopment Agency of the City of San Jacinto was dissolved and this asset was transferred to the City's Successor Housing Authority Fund. $ 2,300,000 b) The former Redevelopment Agency operates various loan and grant programs to assist residents who meet certain qualifications for the purpose of providing home rehabilitation and home ownership assistance to low and moderate income households. The loans are secured by a deed of trust and no monthly payments are required. At the end of the 45-year term, the loans are forgiven unless the following occurs during the grant term: 1) property is sold or transferred or 2) property is no longer owner-occupied, at which time full repayment would be required. Pursuant to AB XI 26, the Redevelopment Agency of the City of San Jacinto was dissolved and this asset was transferred to the City's Successor Housing Authority Fund. Additionally, the asset has been formally recognized on the balance sheet, whereas in the past it has only been referenced by note disclosure. 714,470 c) During the current fiscal year, the City loaned a local business $200,000 in accordance with its established policy of actively promoting economic development within the City. The loan accrues interest at an equivalent of the prevailing prime rate plus 2%. Provided the borrower maintains and operates during all of the term and is not in default of any of the terms of the agreement, then, in consideration of the public benefit received by the City, the total outstanding balance of the loan shall be reduced by ten percent (10%) a year during the term and the borrower shall not be required to make any payments to the City during the term, and the entire unpaid balance of the loan and accrued interest thereon shall be canceled and discharged on the loan's maturity date, which shall be ten (10) years from the date of the promissory note. 200,000 Loans total Accrued interest on note receivable - a) above 3,214,470 194,596 Loans receivable total $ 3,409,066 Final Draft 2/27/2020 4.1.a Packet Pg. 165 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -51- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 5: Defined benefit pension plan A. General information about the pension plan Plan description All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors four rate plans (two miscellaneous and two safety). 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 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board. The Plan’s provisions and benefits in effect at June 30, 2019 are summarized as follows: Miscellaneous Plan On or after Hire date Prior to January 1, 2011 January 1, 2011 and prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2.7% @ 55 2.0% @ 55 2.0% @ 62 Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-58 & up 50-63 & up 52-67 & up Monthly benefits, as a % of eligible compensation 2.0%-2.7% 1.426%-2.418% 1.0%-2.5% Required employee contribution rates 8.000% 7.000% 6.250% Required employer contribution rates 11.675% 8.921% 6.842% Miscellaneous Final Draft 2/27/2020 4.1.a Packet Pg. 166 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -52- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 5: Defined benefit pension plan (continued) A. General information about the pension plan (continued) Safety Plan Hire date Police Fire Police Fire Benefit formula 2.0% @ 50 2.0% @ 55 2.0% @ 50 2.0% @ 55 Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50-55 50-55 50-57 50-57 Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 2.0% to 2.7% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates $34,825 Monthly $34,825 Monthly $35,970 Monthly $35,970 Monthly On or after January 1, 2013 Safety-Inactive Prior to January 1, 2013 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. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and 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. Employer Contributions to the Plan for the fiscal year ended June 30, 2019 were $1,159,232. The actual employer payments of $958,001 made to CalPERS by the City during the measurement period ended June 30, 2018 differed from the City's proportionate share of the employer’s contributions of $1,237,476 by ($279,475) which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan. B. Net pension liability The City's net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2018, using an annual actuarial valuation as of June 30, 2017 rolled forward to June 30, 2018 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows. Final Draft 2/27/2020 4.1.a Packet Pg. 167 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -53- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 5: Defined benefit pension plan (continued) B. Net pension liability (continued) Actuarial methods and assumptions used to determine total pension liability Valuation Date June 30, 2017 Measurement Date June 30, 2018 Actuarial Cost Method Entry Age Normal Asset Valuation Method Market Value of Assets Actuarial Assumptions: Discount Rate 7.15% Inflation 2.50% Salary Increases (1)Varies by Entry Age and Service Investment Rate of Return 7.15% Mortality Rate Table (2) Derived using CALPERS' membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.50% until purchasing power protection allowance floor on purchasing power applies, 2.5% thereafter. (1) Annual increases vary by category, entry age, and duration of service. (2) The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience report (based on CalPERS demographic data from 1997 to 2015) that can found on the CalPERS website. All other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website, at www.calpers.ca.gov. Change of assumptions In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. Final Draft 2/27/2020 4.1.a Packet Pg. 168 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -54- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 5: Defined benefit pension plan (continued) B. Net pension liability (continued) Long-term Expected Rate of Return 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, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows: Asset Class1 New Strategic Allocation Real Return Years 1 - 102 Real Return Years 11+3 Global Equity 50.00%4.80%5.98% Fixed Income 28.00%1.00%2.62% Inflation Assets 0.00%0.77%1.81% Private Equity 8.00%6.30%7.23% Real Assets 13.00%3.75%4.93% Liquidity 1.00%0.00%(0.92%) Total 100% 2 An expected inflation of 2.00% used for this period 3 An expected inflation of 2.92% used for this period 1 In the System's CAFR, fixed income is included in global debt securities; liquidity is included in short-term investments; inflation assets are included in both global equity securities and global debt securities. Final Draft 2/27/2020 4.1.a Packet Pg. 169 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -55- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 5: Defined benefit pension plan (continued) B. Net pension liability (continued) Discount rate The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at 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 investments was applied to all periods of projected benefit payments to determine the total pension liability. 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 CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. 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 the plan. Investments are reported at fair value. The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self- insurance and Other Post-Employment Benefits (OPEB) expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves. C. Proportionate share of net pension liability The following table shows the Plan’s proportionate share of the net pension liability over the measurement period. Plan Total Pension Liability (a) Plan Fiduciary Net Position (b) Plan Net Pension Liability (c ) = (a) - (b) Balance at: 6/30/2017 (VD) 41,406,520$ 29,732,136$ 11,674,384$ Balance at: 6/30/2018(MD) 42,507,090 31,052,595 11,454,495 Net changes during 2017-18 1,100,570 1,320,459 (219,889) Valuation Date (VD), Measurement Date (MD) Increase (Decrease) Final Draft 2/27/2020 4.1.a Packet Pg. 170 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -56- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 5: Defined benefit pension plan (continued) C. Proportionate share of net pension liability (continued) The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2018, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2017 rolled forward to June 30, 2018 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 proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of the June 30, 2017 and 2018 measurement dates was as follows: Miscellaneous Safety Total Proportion - June 30, 2017 0.17913% 0.07720% 0.11772% Proportion - June 30, 2018 0.18044% 0.07932% 0.11887% Change - Increase (Decrease)0.00131% 0.00212% 0.00115% 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 the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate: Miscellaneous Plan's Net Pension Liability 10,115,700$ 6,800,330$ 4,063,547$ Safety Plan's Net Pension Liability 7,135,308 4,654,165 2,621,312 Total 17,251,008$ 11,454,495$ 6,684,859$ Discount Rate - 1% (6.15%) Current Discount Rate (7.15%) Discount Rate + 1% (8.15%) Subsequent events There were no subsequent events that would materially affect the results presented in this disclosure. Final Draft 2/27/2020 4.1.a Packet Pg. 171 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -57- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 5: Defined benefit pension plan (continued) C. Proportionate share of net pension liability (continued) Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss: Difference between projected and actual earnings 5 year straight-line amortization All other amounts Straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C). The EARSL for the Plan for the 2017-18 measurement period is 3.8 years, which was obtained by dividing the total service years of 516,147 (the sum of remaining service lifetimes of the active employees) by 135,474 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund. Final Draft 2/27/2020 4.1.a Packet Pg. 172 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -58- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 5: Defined benefit pension plan (continued) D. Pension expense and deferred outflows and deferred inflows of resources related to pensions As of the start of the measurement period (July 1, 2017), the City's net pension liability was $11,674,384. For the measurement period ending June 30, 2018 (the measurement date), the City incurred a pension expense of $2,221,289. As of measurement date June 30, 2018, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience 360,919$ 89,168$ Changes of assumptions 1,231,912 251,612 Differences between projected and actual earnings 65,130 - Differences between employer's contributions and proportionate share of contributions 91,455 445,329 Change in employer's proportion 204,083 453,697 Pension contributions subsequent to measurement date 1,159,232 - 3,112,731$ 1,239,806$ These amounts above are net of outflows and inflows recognized in the 2016-17 measurement period expense. Contributions subsequent to the measurement date of $738,923 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows: Fiscal Year Ending June 30: Miscellaneous Safety Total 2020 625,402$ 166,929$ 792,331$ 2021 348,999 80,960 429,959 2022 (264,557) (150,637) (415,194) 2023 (61,166) (32,237) (93,403) 2024 - - - Thereafter - - - E. Payable to the pension plan At June 30, 2019, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2019. Final Draft 2/27/2020 4.1.a Packet Pg. 173 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -59- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 6: Long-term liabilities a. Changes in long-term liabilities Changes in long-term liabilities during the year ended June 30, 2019 were as follows: Balance at Balance at Due within June 30, 2018 Additions Deletions June 30, 2019 one year Governmental activities Long-term debt Direct borrowing: 2018 Street Light Financing -$ 2,170,813$ -$ 2,170,813$ 19,194$ Subtotal long-term debt - 2,170,813 - 2,170,813 19,194 Other long-term liabilities Special assessment debt with governmental commitment 455,000$ -$ -$ 455,000$ 455,000$ Matured unpaid interest on special assessment debt with government commitment 629,259 - - 629,259 - 2014 pension obligation bonds 878,726 - (255,426) 623,300 268,439 Capital Lease - Storm Drain - 493,813 - 493,813 91,377 Claims and judgment 317,436 - (143,317) 174,119 - Compensated absences 249,855 93,285 (47,973) 295,167 100,357 Subtotal other long-term liabilities 2,530,276 587,098 (446,716) 2,670,658 915,173 Total Long-term liabilities 2,530,276$ 2,757,911$ (446,716)$ 4,841,471$ 934,367$ Business-type activities Long-term debt Direct borrowing: 2013 Installment sale 1,077,708$ -$ (511,032)$ 566,676$ 135,028$ 2015 Installment sale 3,724,672 - (133,073) 3,591,599 146,337 Subtotal long-term debt 4,802,380 - (644,105) 4,158,275 281,365 Other long-term liabilities Capital Lease - Sewer - 417,782 - 417,782 77,308 Compensated absences 63,311 20,350 (15,978) 67,683 14,890 Subtotal other long-term liabilities 63,311 438,132 (15,978) 485,465 92,198 Total Long-term liabilities 4,865,691$ 438,132$ (660,083)$ 4,643,740$ 373,563$ The General Fund typically liquidates compensated absences, claims and judgements of the Governmental Activities. Final Draft 2/27/2020 4.1.a Packet Pg. 174 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -60- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 6: Long-term liabilities (continued) b. Special assessment debt with government commitment $1,415,000 Assessment District 87-1 Bonds, Series 1987 A, dated March 19, 1987, were issued to finance certain improvements pursuant to the Improvement Bond Act of 1915. The payment of the bonds is secured by assessment liens upon certain lands as described in said assessment and are not direct liabilities of the City. The City may, however, from time to time, when due and delinquent, advance available funds to pay the amount of any succeeding installment of the assessment on said land and the interest thereon on the 1915 bonds. Prior to the fiscal year ended June 30, 1995, the City of San Jacinto advanced funds for said delinquencies. During the fiscal year ended June 30, 1995 the City did not advance further amounts to the reserve fund and had commenced foreclosure proceedings. The City has since settled $670,000 of the principal, due to a completed Bond Tender agreement in exchange for a portion of the parcels. In accordance with GASB Statement No. 6 “Special Assessments,” the special assessment debt has been reflected in the accompanying financial statements at June 30, 2019 as “Special Assessment Debt with Government Commitment” in the amount of $1,084,259. This includes an amount of matured unpaid principal of $455,000. Matured unpaid interest on these bonds is also reported for interest payments due but not paid as of June 30, 2019, in the amount of $629,259. These balances have been outstanding for several years and as such, the City has recorded the corresponding taxes receivable of $1,084,259 in addition to unavailable revenue in the same amount on the Governmental Funds Balance Sheet. c. 2014 Pension Obligation Bonds - Governmental activities In June 2014, the City issued City of San Jacinto 2014 Taxable Pension Obligation Bond in the aggregate principal amount of $1,800,000. The City issued the bonds in order to provide funds to refinance the PERS Side Fund Obligation of the City with respect to the City’s public safety employees and to pay the costs of issuance. The bonds are dated June 12, 2014 and mature on July 1, 2021 in the principal amount and bear interest at the interest rate of 5.00% per annum. Future debt service requirements for pension obligation bonds outstanding are as follows: Fiscal year Total ending June 30,Principal Interest Payment 2020 268,439$ 26,184$ 294,623$ 2021 282,115 12,508 294,623 2022 72,746 909 73,655 Total 623,300$ 39,601$ 662,901$ Pension Obligation Refunding Bonds In the event of default, the bond owner may declare any outstanding bonds, along with accrued interest, to be due and payable immediately. Final Draft 2/27/2020 4.1.a Packet Pg. 175 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -61- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 6: Long-term liabilities d. Installment Sales - Business-type activities 2013 Installment Sale - Direct Borrowing In August 2013, the City signed an installment sale agreement with Zions Bank in the amount of $3,084,793, maturing in 10 years at an annual interest rate of 2.75%. The proceeds were used to refinance the outstanding 1997 Water Revenue Bonds and 2002 Water Revenue Bonds, in the amounts of $1,805,000 and $1,125,000, respectively, and pay costs of issuance related to the agreement. Interest was also paid in the amounts of $49,638 and $28,530, respectively. There was an optional redemption fee of $5,625 for the 2002 bonds, but nothing for the 1997 bonds. Net revenues of the City’s Water Enterprise have been pledged to the payment of the installment payments. The annual debt service requirements to maturity for the installment sale are as follows: Fiscal year Total ending June 30,Principal Interest Payment 2020 135,028$ 15,481$ 150,509$ 2021 137,605 11,784 149,389 2022 144,995 8,018 153,013 2023 147,080 4,050 151,130 2024 1,968 27 1,995 Thereafter - - - Totals 566,676$ 39,360$ 606,036$ 2013 Installment Sale The City may prepay the principal component of the installment payments in whole or in part, on any date on or after October 1, 2018 by paying installment payments required to be paid on such date plus accrued interest to the date set for prepayment, with no prepayment premium. In the event of default, installment owner may declare all principal components of the unpaid installment payments, together with accrued interest thereon at the rate of interest per annum represented by the installment sale from the immediately preceding installment payment date on which payment was made, to be immediately due and payable, whereupon the same shall immediately become due and payable. 2015 Installment Sale - Direct Borrowing In July 2015, the City signed an installment sale agreement with Municipal Finance Corporation in the amount of $3,902,310, maturing in 20 years at an annual interest rate of 3.5%. The proceeds are to be used for the acquisition and construction of certain energy efficiency improvements to the water supply facilities of the City’s Water Enterprise. Net revenues of the City’s Water Enterprise have been pledged to the payment of the installment payments. Final Draft 2/27/2020 4.1.a Packet Pg. 176 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -62- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 6: Long-term liabilities (continued) d. Installment Sales - Business-type activities (continued) 2015 Installment Sale - Direct Borrowing, continued The annual debt service requirements to maturity for the installment sale are as follows: Fiscal year Total ending June 30,Principal Interest Payment 2020 146,337$ 124,474$ 270,811$ 2021 160,575 119,231 279,806 2022 134,207 113,481 247,688 2023 106,964 109,386 216,350 2024 121,950 105,515 227,465 2025-2029 877,624 449,312 1,326,936 2030-2034 1,460,838 252,797 1,713,635 2035-2036 583,104 20,706 603,810 Total 3,591,599$ 1,294,902$ 4,886,501$ Opterra Installment Sale The City may prepay the principal components of the installment payments in whole or in part, on any date on or after September 1, 2026 by paying the installment payment required to be paid on such date plus a prepayment price equal to the principal amount of the installment payments to be prepaid, together with 1% prepayment premium thereon. The City shall give the Corporation written notice of its intention to exercise its option not less than thirty days in advance of the date to exercise. In the event of default, installment owner may declare all principal components of the unpaid installment payments, together with accrued interest thereon at the rate of interest per annum represented by the installment sale from the immediately preceding installment payment date on which payment was made, to be immediately due and payable, whereupon the same shall immediately become due and payable. e. 2018 Streetlight Equipment Purchase Agreement - Direct Borrowing In September 11, 2018 the City signed an equipment lease/purchase agreement with Banc of America Leasing & Capital LLC in the amount of $2,170,813. The purpose of the agreement was to provide financing to the City to assist in the acquisition, installation, retrofitting, repair, improvement, servicing and maintenance of streetlights and other capital improvements. The interest and principal are due semi-annually with payments due on December 1 and June 1 each year. Principal and interest payments will be made through December 1, 2033 with total annual amounts of $229,126 and $114,563 in the final year. The interest rate of the debt is currently 5.59%. The first payment is scheduled to be made on December 1, 2019. Final Draft 2/27/2020 4.1.a Packet Pg. 177 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -63- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 6: Long-term liabilities (continued) e. 2018 Streetlight Equipment Purchase Agreement - Direct Borrowing (continued) Repayment under the Agreement shall be absolute and unconditional, subject to annual appropriation, repayments will be made from the City's general fund plus any other legally available funds of the City. The annual debt service requirements on this debt are as follows: Fiscal year Total ending June 30,Principal Interest Payment 2020 19,194$ 209,932$ 229,126$ 2021 110,372 118,754 229,126 2022 116,628 112,498 229,126 2023 123,238 105,888 229,126 2024 130,223 98,903 229,126 2025-2029 770,568 375,063 1,145,631 2030-2033 900,590 130,478 1,031,068 Total 2,170,813$ 1,151,516$ 3,322,329$ Street Light Financing f. Vactor Truck Capital Lease In June 1, 2019 the City signed a capital lease agreement with Municipal Finance Corporation to fund the acquisition of two cleaning vehicles for the Wastewater and Storm Water divisions, in the amount of $911,595. Interest and principal are due semi-annually with payments due on December 28 and June 28 each year. Principal and interest payments will be made through June 28, 2028 with total annual amounts of $202,174. The interest rate of the debt is currently 3.85%. The first payment is scheduled to be made on December 28, 2019. Should the City fail to pay any part of the Rental Payments herein within fifteen days from the due date thereof, the City shall upon Municipal Finance Corporation's written request, pay interest on such delinquent Rental Payment from the date said Rental Payment was due until paid at the rate of twelve percent (12%) per annum or the maximum legal rate, whatever is less. The City shall pay Rental Payments exclusively from legally available funds, in lawful money of the United States of America, to the Corporation. Final Draft 2/27/2020 4.1.a Packet Pg. 178 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -64- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 6: Long-term liabilities (continued) f. Vactor Truck Capital Lease (continued) The calculation of the present value of the future lease payments for governmental activities are as follows: Governmental activities - Storm Drain 2020 109,518$ 2021 109,518 2022 109,518 2023 109,518 2024 109,518 Subtotal 547,590 Less: amount representing interest (53,777) Present value of future lease payments 493,813$ Future minimum lease payments for the year ending June 30, Accumulated depreciation on assets purchased through lease agreements are as follows: Assets: Vehicles 493,813$ Less: accumulated depreciation (5,144) Total 488,669$ The calculation of the present value of the future lease payments for business-type activities are as follows: Business-type activities - Wastewater 2020 92,656$ 2021 92,656 2022 92,656 2023 92,656 2024 92,656 Subtotal 463,280 Less: amount representing interest (45,498) Present value of future lease payments 417,782$ Future minimum lease payments for the year ending June 30, Accumulated depreciation on assets purchased through lease agreements are as follows: Assets: Vehicles* -$ Less: accumulated depreciation - Total -$ *City had not acquired asset as of June 30, 2019. Final Draft 2/27/2020 4.1.a Packet Pg. 179 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -65- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 6: Long-term liabilities (continued) g. Debt issued without government commitment Refinancing of $17,841,416 Community Facilities District No. 2001-2 Special Tax Bonds In March 2016, $17,975,000 City of San Jacinto Community Facilities District No. 2001-1 (Rancho San Jacinto, Phase 2) 2016 Special Tax Refunding bonds were issued by the San Jacinto Financing Authority for the purpose of refunding the $17,841,416 San Jacinto Financing Authority 2002 Local Agency Revenue Bonds, Series A. The balance at June 30, 2019 is $16,550,000. All bonds represent special limited obligations of the City, payable solely from special taxes levied CFD No. 2002-1, as applicable, and are not an obligation of the General Fund of the City of San Jacinto. The City has covenanted to annually levy the special tax and, in the event of any delinquency in payment to the City of the special tax, the City may order action to foreclose on any property liens. Note 7: Short-term/long-term interfund borrowings Interfund transactions - Due to/due from other funds Individual fund interfund receivable and payable balances at June 30, 2019 were as follows: Receivable Fund General Payable Fund Fund LLPD #2 3,442$ Non-Major Governmental Funds 1,037,629 Solid Waste (Non-Major Enterprise Fund) 4,212 Power 599,769 Internal Service 61,340 Total 1,706,392$ The interfund payables represent temporary loans to cover negative cash balances. Interfund transactions - Advances Individual fund interfund advances to and from balances at June 30, 2019 were as follows: Non-Major General Governmental Payable Fund Fund Funds Totals City Capital Projects Fund 3,581,269$ 2,724,304$ 6,305,573$ Community Facilities District 2003 Fund 2,356,332 - 2,356,332 Total 5,937,601$ 2,724,304$ 8,661,905$ Receivable Fund Final Draft 2/27/2020 4.1.a Packet Pg. 180 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -66- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 7: Short-term/long-term interfund borrowings (continued) > Advances between the City Capital Projects Fund and other City funds are for cash advanced to the City Capital Projects Fund for expected project costs. Also, see Note 1. > The General Fund has advanced cash to the Community Facilities District 2003 Fund to cover costs. Note 8: Transfers in and out Individual fund transfers in and transfers out activity as of June 30, 2019 were as follows: Non-Major Internal General Governmental Service Transfers-In Fund Funds Funds Totals General Fund 451,564$ 349,902$ 50,000$ 851,466$ City Capital Projects Fund 1,805,580 2,755,670 - 4,561,250 Community Facilities District 2003 Fund - 218,737 - 218,737 Non-Major Governmental Funds 5,871 5,561 - 11,432 Enterprise - Non-Major Funds 1,854 - - 1,854 Internal Service Funds 67,056 - - 67,056 Total 2,331,925$ 3,329,870$ 50,000$ 5,711,795$ Transfers-Out  Transfers to the General Fund from non-major governmental funds represent reimbursement for costs of public safety and grant reimbursement costs.  Transfers to the City Capital Projects Fund from all other City funds are to fund various capital projects of the City. Also, see Note 1.  Transfers to the Community Facilities District 2003 fund from non-major governmental funds are to pay for operational costs, as directed by City Council.  Transfers to non-major governmental funds from the General Fund are for operating transfers to cover ongoing negative cash balances and cost reimbursement.  Transfers to the Enterprise - Non-Major Funds from the General Fund were to cover negative cash balance.  Transfers to Internal Service Funds from the General Fund are to reimburse costs of replacement equipment. Final Draft 2/27/2020 4.1.a Packet Pg. 181 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -67- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 IV. OTHER DISCLOSURES Note 9: Risk management The City adopted a self-insured workers’ compensation program which is administered by a service agent. The City is self-insured for the first $250,000 on each claim. Insurance coverage in excess of the self-insured amount is provided by Public Entity Risk Management Authority (PERMA) up to statutory limits for workers’ compensation. Effective July 1, 2002, the City elected to reduce self-insured liability claim coverage from $125,000 to $50,000 on each general liability claim against the City. The insurance coverage in excess of the self- insured amount is provided by PERMA up to a limit of $50,000,000. Claims, expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. At June 30, 2019, the amount of these liabilities was $174,119. This amount represents an estimate of $174,119 for reported claims through June 30, 2019. These claims are recorded as claims payable in the Workers’ Compensation Fund and Liability Insurance Fund. This liability is the City’s best estimate based on available information. Changes in the reported liability are as follows: Change In Liability at Claim Liability at Year Beginning of Year Payable End of Year 2015-2016 197,650$ 9,713$ 207,363$ 2016-2017 207,363 57,671 265,034 2017-2018 265,034 52,402 317,436 2018-2019 317,436 (143,317) 174,119 Effective July 1, 1986 the City became a member of PERMA, a public entity risk pool, currently operating as a common risk management and insurance program for 17 California cities and 8 Special District/Agencies. The City pays an annual premium to the pool for its excess general liability insurance coverage. The agreement for formation of PERMA provides that the pool will be self- sustaining through member premiums. The City continues to carry commercial companies for all other risks of loss, including property insurance, earthquake and flood, auto physical damage insurance and TULIP/special events insurance. PERMA has published its own financial report for the year ended June 30, 2019, which can be obtained from Public Entity Risk Management Authority, 77-670 Springfield Land, Suite 1A, Palm Desert, CA 92211. Final Draft 2/27/2020 4.1.a Packet Pg. 182 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -68- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 10: Commitments and contingencies a. Construction commitments The City has entered into various commitments for construction and/or capital projects. As of June 30, 2019, the City had outstanding contracts commitments of $1,504,968. b. Grants Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. c. Other The City is involved as a defendant in various legal proceedings. While it is not feasible to predict or determine the outcome in these cases, it is the opinion of the City that the outcome of the majority of these cases will have no material adverse effect on the financial position of the City. Note 11: Fund balance reservations/designations The City’s Government Fund balances are detailed below: City Community Successor Non-Major Total Capital Facilities Housing Assessment Governmental Governmental General Projects District 2003 Authority LLPD #2 District 2003-01 Funds Funds Nonspendable: Prepaids/Inventory 50,360$ -$ -$ -$ -$ -$ -$ 50,360$ Total nonspendable 50,360 - - - - - - 50,360 Restricted: Land held for resale - - - 339,807 - - - 339,807 Lighting and landscape - - - - 7,629,964 ‐ - 7,629,964 Advances receivable 6,899,717 - - - - - 2,724,304 9,624,021 Other government restrictions - - - 166,527 - 5,916,699 7,671,501 13,754,727 Total restricted 6,899,717 - - 506,334 7,629,964 5,916,699 10,395,805 31,348,519 Assigned:- - - - - - 1,598,499 1,598,499 Unassigned:7,124,883 - (2,988,605) - - - (785,136) 3,351,142 Total fund balances 14,074,960$ -$ (2,988,605)$ 506,334$ 7,629,964$ 5,916,699$ 11,209,168$ 36,348,520$ The City has established a minimum fund balance policy for the General Fund Contingency Reserve. The City Council stipulates that the Contingency Reserve must be a minimum of 15 percent of the upcoming fiscal year's General Fund annual budgeted operating expenditures. At fiscal year-end the Reserve for Contingency balance was $4,239,708, 22.0 percent of fiscal year June 30, 2019 budgeted General Fund operating expenditures. This reserve has been reported as unassigned in the General Fund. Final Draft 2/27/2020 4.1.a Packet Pg. 183 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -69- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 12: Dissolution of California Redevelopment Agencies On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (Bill) that provides for the dissolution of all redevelopment agencies in the State of California. Most cities in California had established a redevelopment agency that was included in the reporting entity of the City as a blended component unit (since the City council, in many cases, also served as the governing board for those agencies). In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. In accordance with the provisions of ABX 1 26 (Bill) and the California Supreme Court’s decision to uphold the Bill, the obligations of the former redevelopment agency became vested with the funds established for the successor agency upon the date of dissolution, February 1, 2012. Former tax increment revenues pledged to fund the debts of the former redevelopment agency will be distributed to the Successor Agency subject to the reapportionment of such revenues as provided by the Bill. The debt of the Successor Agency as of June 30, 2019 is as follows: Balance at Balance at Due within June 30, 2018 Additions Deletions June 30, 2019 one year Successor agency Bonds payable: 2005 Tax Allocation Bonds 6,780,000$ -$ (275,000)$ 6,505,000$ 285,000$ Total long-term liabilities 6,780,000$ -$ (275,000)$ 6,505,000$ 285,000$ Future debt service requirements for the bonds payable are as follows: Fiscal year Total ending June 30,Principal Interest Payment 2020 285,000$ 290,903$ 575,903$ 2021 300,000 277,740 577,740 2022 310,000 264,015 574,015 2023 325,000 249,728 574,728 2024 340,000 234,765 574,765 2025-2029 1,945,000 921,548 2,866,548 2030-2034 2,440,000 419,600 2,859,600 2035-2036 560,000 12,730 572,730 Totals 6,505,000$ 2,671,029$ 9,176,029$ 2005 Tax Allocation Bonds Final Draft 2/27/2020 4.1.a Packet Pg. 184 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -70- City of San Jacinto Notes to the Basic Financial Statements June 30, 2019 Note 13: Risks and uncertainties Successor Agency Deductions (expenses) incurred by the Successor Agency for the year ended June 30, 2019 (and subsequent years in which the Successor Agency is in operation) are subject to review by various State agencies and the County in which the Successor Agency resides. If any expenses incurred by the Successor Agency are disallowed by the State agencies or County, the City, acting as the Successor Agency could be liable for the repayment of the disallowed costs from either its own funds or by the State withholding remittances normally paid to the City. The amount, if any, of expenses that may be disallowed by the State agencies or County cannot be determined at this time, although the Successor Agency expects such amounts, if any, to be immaterial. Note 14: Pension plan change On December 21, 2016, the California Public Employees’ Retirement System (CalPERS) Board of Administration voted to lower the CalPERS discount rate from 7.5 percent to 7.0 percent over the next three years. The discount rate will be changed as follows: Fiscal year 2018-2019 7.15% Fiscal year 2019-2020 7.00% Lowering the discount rate, also known as the assumed rate of return, means employers that contract with CalPERS to administer their pension plans will see increases in their normal costs and unfunded actuarial liabilities. Note 15: Prior period restatement The City has determined that the Public Safety Pension Plan unfunded liability (and related deferred amounts) of the former police department have become material to the Government-wide Financial Statements and are a liability of the City. Therefore, a restatement has been made to the Government-wide Financial Statements to reflect this liability (and any related deferred amounts). The City has been making the employer unfunded payment since the dissolution of the police department and will continue to do so until the unfunded liability is paid off. Government-Wide Statements Statement of Activities - Governmental Activities Net position, beginning of year, prior to restatement 141,785,694$ Recording of Safety Pension Plan Deferred Outflows 1,857,105 Recording of Safety Pension Plan Net Pension Liability (4,613,123) Recording of Safety Pension Plan Deferred Inflows (743,290) Restatement (3,499,308) Net position, beginning of year, as restated 138,286,386$ Final Draft 2/27/2020 4.1.a Packet Pg. 185 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June Required Supplementary Information Final Draft 2/27/2020 4.1.a Packet Pg. 186 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -71- Required Supplementary Information City of San Jacinto Budgetary Comparison Schedule - General Fund For the Year Ended June 30, 2019 Actual Variance with Original Final Amounts Final Budget REVENUES Taxes 7,612,640$ 7,612,640$ 8,439,156$ 826,516$ Licenses and permits 1,166,000 1,166,000 1,412,183 246,183 Fines and forfeitures 210,000 210,000 208,767 (1,233) Development fees 200,000 200,000 179,113 (20,887) Intergovernmental 5,320,619 5,320,619 4,035,443 (1,285,176) Charges for services 728,500 728,500 651,336 (77,164) Investment earnings 150,000 150,000 951,016 801,016 Other 3,020,410 3,020,410 3,201,616 181,206 Total revenues 18,408,169 18,408,169 19,078,630 670,461 EXPENDITURES Current: General government 2,485,020 2,485,020 2,579,685 (94,665) Public safety 12,505,468 12,505,468 11,708,351 797,117 Public works 631,525 534,417 870,317 (335,900) Community development 3,114,996 3,164,189 3,037,390 126,799 Culture and leisure 70,068 70,068 92,706 (22,638) Debt service: Principal 255,426 255,426 255,426 - Interest 39,197 39,197 39,197 - Capital outlay 28,600 619,521 2,322,108 (1,702,587) Total expenditures 19,130,300 19,673,306 20,905,180 (1,231,874) Excess (deficiency) of revenues over (under) expenditures (722,131) (1,265,137) (1,826,550) (561,413) OTHER FINANCING SOURCES (USES) Proceeds from the sale of property - - 12,000 12,000 Proceeds from loan - 493,813 2,664,626 2,170,813 Transfers in 335,000 748,672 851,466 102,794 Transfers out (4,412,221) (6,011,285) (2,331,925) 3,679,360 Total other financing sources (uses) (4,077,221) (4,768,800) 1,196,167 5,964,967 Net change in fund balance (4,799,352) (6,033,937) (630,383) 5,403,554 Fund balance, beginning of year 14,705,343 14,705,343 14,705,343 - Fund balance, end of year 9,905,991$ 8,671,406$ 14,074,960$ 5,403,554$ Budgeted Amounts Final Draft 2/27/2020 4.1.a Packet Pg. 187 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -72- Required Supplementary Information City of San Jacinto Budgetary Comparison Schedule - Community Facilities District 2003 Fund For the Year Ended June 30, 2019 Actual Variance with Original Final Amounts Final Budget REVENUES Assessments 2,290,000$ 2,290,000$ 2,416,067$ 126,067$ Total revenues 2,290,000 2,290,000 2,416,067 126,067 EXPENDITURES Current: General government 26,500 26,500 26,689 (189) Public safety 3,507,923 3,507,923 3,032,772 475,151 Debt service: Interest 20,000 20,000 59,349 (39,349) Total expenditures 3,554,423 3,554,423 3,118,810 435,613 Excess (deficiency) of revenues over (under) expenditures (1,264,423) (1,264,423) (702,743) 561,680 OTHER FINANCING SOURCES (USES) Transfers in 51,929 51,929 218,737 166,808 Total other financing sources (uses) 51,929 51,929 218,737 166,808 Net change in fund balance (1,212,494) (1,212,494) (484,006) 728,488 Fund balance, beginning of year (2,504,599) (2,504,599) (2,504,599) - Fund balance, end of year (3,717,093)$ (3,717,093)$ (2,988,605)$ 728,488$ Budgeted Amounts Final Draft 2/27/2020 4.1.a Packet Pg. 188 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -73- Required Supplementary Information City of San Jacinto Budgetary Comparison Schedule - Successor Housing Authority For the Year Ended June 30, 2019 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 4,194$ 4,194$ 4,204$ 10$ Investment earnings 1,400 1,400 20,928 19,528 Total revenues 5,594 5,594 25,132 19,538 EXPENDITURES Current: General government 13,000 13,000 4,396 8,604 Total expenditures 13,000 13,000 4,396 8,604 Net change in fund balance (7,406) (7,406) 20,736 28,142 Fund balance, beginning of year 485,598 485,598 485,598 - Fund balance, end of year 478,192$ 478,192$ 506,334$ 28,142$ Budgeted Amounts Final Draft 2/27/2020 4.1.a Packet Pg. 189 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -74- Required Supplementary Information City of San Jacinto Budgetary Comparison Schedule - LLPD #2 Fund For the Year Ended June 30, 2019 Actual Variance with Original Final Amounts Final Budget REVENUES Assessments 3,000,000$ 3,000,000$ 3,901,808$ 901,808$ Development fees 10,000 10,000 4,688 (5,312) Investment earnings 75,000 75,000 107,548 32,548 Other - - 550 550 Total revenues 3,085,000 3,085,000 4,014,594 929,594 EXPENDITURES Current: Community development 4,805,085 4,805,085 3,476,700 1,328,385 Total expenditures 4,805,085 4,805,085 3,476,700 1,328,385 Net change in fund balance (1,720,085) (1,720,085) 537,894 2,257,979 Fund balance, beginning of year 7,092,070 7,092,070 7,092,070 - Fund balance, end of year 5,371,985$ 5,371,985$ 7,629,964$ 2,257,979$ Budgeted Amounts Final Draft 2/27/2020 4.1.a Packet Pg. 190 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -75- Required Supplementary Information City of San Jacinto Budgetary Comparison Schedule - Assessment District 2003-01 Fund For the Year Ended June 30, 2019 Actual Variance with Original Final Amounts Final Budget REVENUES Assessments 745,000$ 745,000$ 928,161$ 183,161$ Investment earnings 48,000 48,000 87,545 39,545 Total revenues 793,000 793,000 1,015,706 222,706 EXPENDITURES Current: Public Works 244,796 244,796 40,616 204,180 Capital outlay 2,055,853 2,055,853 6,033 2,049,820 Total expenditures 2,300,649 2,300,649 46,649 2,254,000 Net change in fund balance (1,507,649) (1,507,649) 969,057 2,476,706 Fund balance, beginning of year 4,947,642 4,947,642 4,947,642 - Fund balance, end of year 3,439,993$ 3,439,993$ 5,916,699$ 2,476,706$ Budgeted Amounts Final Draft 2/27/2020 4.1.a Packet Pg. 191 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -76- Required Supplementary Information City of San Jacinto Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and Related Ratios as of the Measurement Date - Last 10 Years* For the Year Ended June 30, 2019 Measurement Date Employer's Proportion of the Collective Net Pension Liability1 Employer's Proportionate Share of the Collective Net Pension Liability Employer's Covered Payroll2 Employer's Proportionate Share of the Collective Net Pension Liability as a percentage of the Employer's Covered Payroll Pension Plan's Fiduciary Net Position as a percentage of the Total Pension Liability Miscellaneous Plan 6/30/2014 0.18099% 4,473,080$ 3,036,159$ 147%76.82% 6/30/2015 0.19300% 5,294,972 2,908,424 182%73.75% 6/30/2016 0.18182% 6,316,067 2,317,063 273%70.82% 6/30/2017 0.17913% 7,061,261 2,804,241 252%69.75% 6/30/2018 0.18044% 6,800,330 3,119,387 218%72.25% Safety Plan (Inactive) 6/30/2014 0.07000% 2,516,462$ -$ - 0.00% 6/30/2015 0.07447% 3,068,587 - - 80.89% 6/30/2016 0.07781% 4,030,026 - - 75.83% 6/30/2017 0.07720% 4,613,123 - - 74.46% 6/30/2018 0.07932% 4,654,165 - - 74.14% 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. 2 Covered payroll is defined as the payroll on which contributions to a pension plan are based, in accordance with GASB 82. * Measurement period 2013-14 (fiscal year 2014-15) was the first year of implementation, therefore, only five years are shown. Final Draft 2/27/2020 4.1.a Packet Pg. 192 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -77- Required Supplementary Information City of San Jacinto Schedule of Plan Contributions - Last 10 Years* For the Year Ended June 30, 2019 Fiscal Year Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered payroll 1 Contributions as a percentage of covered payroll1 Miscellaneous Plan 6/30/2015 640,721$ (640,721)$ -$ 2,908,424$ 22.03% 6/30/2016 613,674 (613,674) - 2,317,063 26.48% 6/30/2017 691,841 (691,841) - 2,804,241 24.67% 6/30/2018 738,923 (738,923) - 3,119,387 23.69% 6/30/2019 876,180 (876,180) - 3,810,207 23.00% Safety Plan (Inactive) 6/30/2015 138,527$ (138,527)$ -$ -$ 0.00% 6/30/2016 146,311 (146,311) - - - 6/30/2017 175,023 (175,023) - - - 6/30/2018 219,078 (219,078) - - - 6/30/2019 283,052 (283,052) - - - * Fiscal year 2014-15 was the first year of implementation, therefore, only five years are presented. Notes to Schedule: Change in Benefit Terms: None 1 Covered Payroll is defined as the payroll on which contributions to a pension plan are based, in accordance with GASB 82. Change in Assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. Final Draft 2/27/2020 4.1.a Packet Pg. 193 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June Non-Major Governmental Funds Final Draft 2/27/2020 4.1.a Packet Pg. 194 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -78- City of San Jacinto Combining Balance Sheet Non-Major Funds June 30, 2019 CFD #2003-2 Sewer Lift Gas Tax Measure A Traffic Safety Operations ASSETS Cash and investments 724,625$ 1,388,670$ 79,685$ 509$ Receivables, net: Accounts - - - - Taxes and assessments - - - 334 Due from other governments 20,452 157,632 3,579 - Advances receivable - 1,683,271 58,129 - Total assets 745,077$ 3,229,573$ 141,393$ 843$ LIABILITIES Accounts payable -$ -$ 9,647$ 843$ Accrued payroll - - - - Due to other funds - - - - Unearned revenue - - - - Total liabilities - - 9,647 843 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - - - FUND BALANCES Restricted 745,077 3,229,573 131,746 - Unassigned - - - - Total fund balances (deficit)745,077 3,229,573 131,746 - Total liabilities, deferred inflows of resources and fund balances 745,077$ 3,229,573$ 141,393$ 843$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 195 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -79- Continued Park Parkway State Asset Public Safety LLPD #1 Development Development CSA 152 Seizure Sales Tax 38,554$ 32,255$ 42,867$ 250$ 112,832$ -$ - - - 52,292 - - 12,445 - - - - - - - - 194,922 - 24,045 - - - - - - 50,999$ 32,255$ 42,867$ 247,464$ 112,832$ 24,045$ 50,999$ -$ -$ 8,892$ -$ -$ - - - - - - - - - 189,538 - - - - - - - - 50,999 - - 198,430 - - - - - - - - - 32,255 42,867 49,034 112,832 24,045 - - - - - - - 32,255 42,867 49,034 112,832 24,045 50,999$ 32,255$ 42,867$ 247,464$ 112,832$ 24,045$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 196 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -80- City of San Jacinto Combining Balance Sheet Non-Major Funds June 30, 2019 SB 621 AB3229 Gaming Air Quality COPS Fire Impact Improvement Program Mitigation Grants ASSETS Cash and investments 133,764$ 115,838$ 644,543$ 12,345$ Receivables, net: Accounts - - - - Taxes and assessments - - - - Due from other governments 16,190 - - - Advances receivable - - - 39,988 Total assets 149,954$ 115,838$ 644,543$ 52,333$ LIABILITIES Accounts payable -$ 41,675$ -$ -$ Accrued payroll - - - - Due to other funds - - - - Unearned revenue - 16,667 - 39,988 Total liabilities - 58,342 - 39,988 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - - - FUND BALANCES Restricted 149,954 57,496 644,543 39,988 Unassigned - - - (27,643) Total fund balances (deficit)149,954 57,496 644,543 12,345 Total liabilities, deferred inflows of resources and fund balances 149,954$ 115,838$ 644,543$ 52,333$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 197 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -81- Continued Federal Developer Special District Asset State Impact AB1600 Administration Seizure Grants Fees 398,030$ 114,211$ 65,226$ -$ 3,414,907$ - - - - - - - - - - - - - - - 210,000 - - - 269,317 608,030$ 114,211$ 65,226$ -$ 3,684,224$ -$ -$ -$ -$ -$ - 13,460 - - - - - - - - - - - - - 13,460 - - - - - - - - 608,030 100,751 65,226 - 3,684,224 - - - - - 608,030 100,751 65,226 - 3,684,224 608,030$ 114,211$ 65,226$ -$ 3,684,224$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 198 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -82- City of San Jacinto Combining Balance Sheet Non-Major Funds June 30, 2019 Total Vandalism Special & Graffiti Revenue Reward RMRA CDBG Funds ASSETS Cash and investments 40,553$ 230,037$ -$ 7,589,701$ Receivables, net: Accounts 39,412 - - 91,704 Taxes and assessments - - - 12,779 Due from other governments - 157,574 - 574,394 Advances receivable - 250,000 - 2,510,705 Total assets 79,965$ 637,611$ -$ 10,779,283$ LIABILITIES Accounts payable -$ -$ -$ 112,056$ Accrued payroll - - - 13,460 Due to other funds - - 109,745 299,283 Unearned revenue - - - 56,655 Total liabilities - - 109,745 481,454 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 39,412 - - 39,412 FUND BALANCES Restricted 40,553 637,611 - 10,395,805 Unassigned - - (109,745) (137,388) Total fund balances (deficit) 40,553 637,611 (109,745) 10,258,417 Total liabilities, deferred inflows of resources and fund balances 79,965$ 637,611$ -$ 10,779,283$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 199 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -83- City of San Jacinto Combining Balance Sheet Non-Major Funds June 30, 2019 Underground Flood Traffic Utility Control Signalization ASSETS Cash and investments 1,131,172$ -$ 162,644$ Receivables, net: Accounts - - - Taxes and assessments - - - Due from other governments - 869,218 - Advances receivable - - 20,000 Total assets 1,131,172$ 869,218$ 182,644$ LIABILITIES Accounts payable -$ -$ -$ Accrued payroll - - - Due to other funds - 170,531 - Due to other governments - - - Unearned revenue - - - Total liabilities - 170,531 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - 869,218 - FUND BALANCES Restricted - - - Assigned 1,131,172 - 182,644 Unassigned - (170,531) - Total fund balances (deficit)1,131,172 (170,531) 182,644 Total liabilities, deferred inflows of resources and fund balances 1,131,172$ 869,218$ 182,644$ Capital Projects Final Draft 2/27/2020 4.1.a Packet Pg. 200 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -84- Continued Debt Service Total Highway 79 TUMF Total Assessment Non-Major Capital Capital Capital Projects District 87-1 Governmental Projects Projects Funds Debt Service Funds 91,084$ -$ 1,384,900$ -$ 8,974,601$ - - - - 91,704 - - - 1,084,259 1,097,038 - 234,726 1,103,944 - 1,678,338 193,599 - 213,599 - 2,724,304 284,683$ 234,726$ 2,702,443$ 1,084,259$ 14,565,985$ -$ -$ -$ -$ 112,056$ - - - - 13,460 - 257,096 427,627 310,719 1,037,629 - - - 144,128 144,128 - - - - 56,655 - 257,096 427,627 454,847 1,363,928 - - 869,218 1,084,259 1,992,889 - - - - 10,395,805 284,683 - 1,598,499 - 1,598,499 - (22,370) (192,901) (454,847) (785,136) 284,683 (22,370) 1,405,598 (454,847) 11,209,168 284,683$ 234,726$ 2,702,443$ 1,084,259$ 14,565,985$ Capital Projects Final Draft 2/27/2020 4.1.a Packet Pg. 201 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -85- City of San Jacinto Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Funds For the Year Ended June 30, 2019 CFD #2003-2 Sewer Lift Gas Tax Measure A Traffic Safety Operations REVENUES Taxes -$ -$ -$ -$ Assessments - - - 19,908 Fines and forfeitures - - 42,444 - Development fees - - - - Intergovernmental 986,138 962,806 - - Investment earnings 12,848 56,908 - 85 Other - - - - Total revenues 998,986 1,019,714 42,444 19,993 EXPENDITURES Current: General government - - - - Public safety - - 44,161 - Public works 1,366,862 65,916 15,985 20,282 Community development - - - - Culture and leisure - - - - Capital outlay - - 453 - Total expenditures 1,366,862 65,916 60,599 20,282 Excess (deficiency) of revenues over (under) expenditures (367,876) 953,798 (18,155) (289) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (1,631,798) (31,046) - Total other financing sources (uses)- (1,631,798) (31,046) - Net change in fund balances (367,876) (678,000) (49,201) (289) Fund balances, beginning of year 1,112,953 3,907,573 180,947 289 Fund balances, end of year 745,077$ 3,229,573$ 131,746$ -$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 202 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -86- Continued Park Parkway State Asset Public Safety LLPD #1 Development Development CSA 152 Seizure Sales Tax -$ -$ -$ -$ -$ 304,528$ 654,490 - - - - - - - - 491,428 - - - 891 - - - - - - - 210,006 - - - 524 702 1,115 1,851 - 600 - - - - - 655,090 1,415 702 702,549 1,851 304,528 3,421 - - - - - - - - - 1,124 - - - - 483,812 - - - - - - - - 651,669 - - - - - - - - - - - 655,090 - - 483,812 1,124 - - 1,415 702 218,737 727 304,528 - - - - - - - - - (218,737) - (301,744) - - - (218,737) - (301,744) - 1,415 702 - 727 2,784 - 30,840 42,165 49,034 112,105 21,261 -$ 32,255$ 42,867$ 49,034$ 112,832$ 24,045$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 203 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -87- City of San Jacinto Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Funds For the Year Ended June 30, 2019 SB 621 AB3229 Gaming Air Quality COPS Fire Impact Improvement Program Mitigation Grants REVENUES Taxes -$ -$ -$ -$ Assessments - - - - Fines and forfeitures - - - - Development fees - - 5,253 - Intergovernmental 62,448 132,080 - 10,089 Investment earnings 1,754 1,443 10,532 881 Other - - - - Total revenues 64,202 133,523 15,785 10,970 EXPENDITURES Current: General government - - - - Public safety - 647 - - Public works 9,042 - - - Community development - - - - Culture and leisure - - - - Capital outlay - 100,380 - 15,261 Total expenditures 9,042 101,027 - 15,261 Excess (deficiency) of revenues over (under) expenditures 55,160 32,496 15,785 (4,291) OTHER FINANCING SOURCES (USES) Transfers in 5,871 - - - Transfers out - - - - Total other financing sources (uses)5,871 - - - Net change in fund balances 61,031 32,496 15,785 (4,291) Fund balances (deficit), beginning of year 88,923 25,000 628,758 16,636 Fund balances (deficit), end of year 149,954$ 57,496$ 644,543$ 12,345$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 204 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -88- Continued Federal Developer Special District Asset State Impact AB1600 Administration Seizure Grants Fees -$ -$ -$ -$ -$ - - - - - - - - - - 18,290 18,550 - - 553,216 - - - 94,025 - 10,087 - 1,326 - 58,993 - 375,158 - - - 28,377 393,708 1,326 94,025 612,209 - - - - - - - - - - - - - - 38,784 - 364,832 - - - - - - - 1,524 - - 30,900 - - - 364,832 30,900 - 40,308 28,377 28,876 (29,574) 94,025 571,901 - - - 5,561 - - (48,159) - - (61,179) - (48,159) - 5,561 (61,179) 28,377 (19,283) (29,574) 99,586 510,722 579,653 120,034 94,800 (99,586) 3,173,502 608,030$ 100,751$ 65,226$ -$ 3,684,224$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 205 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -89- City of San Jacinto Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Funds For the Year Ended June 30, 2019 Total Vandalism Special & Graffiti Revenue Reward RMRA CDBG Funds REVENUES Taxes -$ -$ -$ 304,528$ Assessments - - - 674,398 Fines and forfeitures - - - 533,872 Development fees - - - 596,200 Intergovernmental - 882,912 50,720 3,391,224 Investment earnings - 7,419 - 166,468 Other - - - 375,758 Total revenues - 890,331 50,720 6,042,448 EXPENDITURES Current: General government - - - 3,421 Public safety - - - 45,932 Public works - - - 2,000,683 Community development - - - 364,832 Culture and leisure - - - 653,193 Capital outlay - - - 146,994 Total expenditures - - - 3,215,055 Excess (deficiency) of revenues over (under) expenditures - 890,331 50,720 2,827,393 OTHER FINANCING SOURCES (USES) Transfers in - - - 11,432 Transfers out - (518,000) (159,545) (2,970,208) Total other financing sources (uses)- (518,000) (159,545) (2,958,776) Net change in fund balances - 372,331 (108,825) (131,383) Fund balances (deficit), beginning of year 40,553 265,280 (920) 10,389,800 Fund balances (deficit), end of year 40,553$ 637,611$ (109,745)$ 10,258,417$ Special Revenue Funds Final Draft 2/27/2020 4.1.a Packet Pg. 206 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -90- City of San Jacinto Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Funds For the Year Ended June 30, 2019 Underground Flood Traffic Utility Control Signalization REVENUES Taxes -$ -$ -$ Assessments - - - Fines and forfeitures - - - Development fees - 188,684 224 Intergovernmental - - - Investment earnings 18,501 - 3,050 Other - - - Total revenues 18,501 188,684 3,274 EXPENDITURES Current: General government - - - Public safety - - - Public works - 148,559 10,834 Community development - - - Culture and leisure - - - Capital outlay - - - Total expenditures - 148,559 10,834 Excess (deficiency) of revenues over (under) expenditures 18,501 40,125 (7,560) OTHER FINANCING SOURCES (USES) Transfers in - - - Transfers out - (76,832) - Total other financing sources (uses)- (76,832) - Net change in fund balances 18,501 (36,707) (7,560) Fund balances (deficit), beginning of year 1,112,671 (133,824) 190,204 Fund balances (deficit), end of year 1,131,172$ (170,531)$ 182,644$ Capital Projects Final Draft 2/27/2020 4.1.a Packet Pg. 207 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June -91- Continued Debt Service Total Highway 79 TUMF Total Assessment Non-Major Capital Capital Capital Projects District 87-1 Governmental Projects Projects Funds Debt Service Funds -$ -$ -$ -$ 304,528$ - - - - 674,398 - - - - 533,872 - - 188,908 - 785,108 - 234,728 234,728 - 3,625,952 - - 21,551 - 188,019 - - - - 375,758 - 234,728 445,187 - 6,487,635 - - - 2,150 5,571 - - - - 45,932 - - 159,393 - 2,160,076 - - - - 364,832 - - - - 653,193 - - - - 146,994 - - 159,393 2,150 3,376,598 - 234,728 285,794 (2,150) 3,111,037 - - - - 11,432 (34,823) (248,007) (359,662) - (3,329,870) (34,823) (248,007) (359,662) - (3,318,438) (34,823) (13,279) (73,868) (2,150) (207,401) 319,506 (9,091) 1,479,466 (452,697) 11,416,569 284,683$ (22,370)$ 1,405,598$ (454,847)$ 11,209,168$ Capital Projects Final Draft 2/27/2020 4.1.a Packet Pg. 208 Attachment: 2019 City of San Jacinto FS - Final Draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June To the Honorable City Council City of San Jacinto San Jacinto, California We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Jacinto (the City) for the year ended June 30, 2019. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated May 3, 2019, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and Government Auditing Standards. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. 4.1.b Packet Pg. 209 Attachment: 2019 City of San Jacinto SAS 114 Letter - draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year The Honorable City Council City of San Jacinto Page 2 Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence. Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2019. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies if controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events, and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly of management’s current judgments. The most sensitive accounting estimates affecting the City’s financial statements are: Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements taken as a whole. Management’s estimate of the depreciation expenses is based on historical estimates of each capitalized item’s useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that it is reasonable in relation to the financial statements taken as a whole. Management’s estimate of the net pension liability and related deferred inflows and outflows is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole. 4.1.b Packet Pg. 210 Attachment: 2019 City of San Jacinto SAS 114 Letter - draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Financial Statement Disclosures Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to: The disclosure of the fair value of investments in the notes to the financial statements represents amounts susceptible to market fluctuations. The disclosure of accumulated depreciation in the notes to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item. The disclosure of net pension liability and related deferred inflows and outflows in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all material misstatements. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated March 3, 2020. Management’s Consultations with Other Accountants 4.1.b Packet Pg. 211 Attachment: 2019 City of San Jacinto SAS 114 Letter - draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors. Other Matters We applied certain limited procedures to Management’s Discussion and Analysis, the Schedule of the City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios as of the Measurement Date, the Schedule of Plan Contributions, and the budgetary comparison information for the General Fund, and major special revenue funds, which are Required Supplementary Information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on Supplementary Information, which accompany the financial statements but are not RSI. With respect to this Supplementary Information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the Supplementary Information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, March 3, 2020 4.1.b Packet Pg. 212 Attachment: 2019 City of San Jacinto SAS 114 Letter - draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable City Council City of San Jacinto San Jacinto, California Independent Auditor’s Report We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Jacinto (the City), California as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 3, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 4.1.c Packet Pg. 213 Attachment: 2019 City of San Jacinto GAS - draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, The Honorable City Council City of San Jacinto Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. San Bernardino, California March 3, 2020 4.1.c Packet Pg. 214 Attachment: 2019 City of San Jacinto GAS - draft (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, March 3, 2020 TO: City Council REQUESTED BY: Angela Walton, City Clerk APPROVED BY: Robert A. Johnson, City Manager SUBJECT: Planning Commission Ad Hoc Committee Appointment Recommendations RECOMMENDATION: Staff recommends that the City Council appoint one of the candidates that was interviewed by the Planning Commission Ad Hoc Committee to fill the term left vacant by Planning Commissioner Leslie Moore. DISCUSSION: Former Planning Commissioner Leslie Moore resigned from Planning Commission on January 13, 2020, leaving an unexpired term that expires on October 31, 2021. The recruitment period for accepting applications was from January 27, 2020 through February 20, 2020. Six applications were received. The Selection Sub-Committee consists of Mayor Pro Tem Crystal Ruiz and Councilmember Joel Lopez. The Selection Subcommittee will make a recommendation for one planning commissioner to be appointed at the March 3, 2020 City Council meeting. The term of the appointment is through October 31, 2021. Following the appointment and acceptance by the new planning commissioners, the appointee will take the oath and begin serving on the Planning Commission immediately beginning with the March 24, 2020 Planning Commission meeting. FISCAL IMPACT: None. 4.2 Packet Pg. 215 z � � d •g � Fes.. a m W E W c a`, a? 6 W w C 0. � E O r .� ca o J o 0 m U O p N ;, o ._ Y a HU O CLCM E N H C N Cl) a. 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