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HomeMy WebLinkAbout2022/06/30 Comprehensive Annual Financial Report City of Rancho Cucamonga �l ANNUAL COMPREHENSIVE RANCHO CUCAMONGA FINANCIAL REPORT CALIFORNIA FOR FISCAL YEAR ENDED JUNE 30, 2022 kL 14 ARY II J� t 1 � v r�R SEEP, THIS PAGE INTENTIONALLY LEFT BLANK City of Rancho Cucamonga, California Annual Comprehensive Financial Report For Fiscal Year Ended June 30, 2022 Prepared by the City of Rancho Cucamonga Finance Department Noah Daniels Finance Director THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO CUCAMONGA, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT JUNE 30, 2022 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letterof Transmittal ..............................................................................................................................i CityOfficials .......................................................................................................................................vii OrganizationChart............................................................................................................................viii Certificate of Achievement for Excellence in Financial Reporting ......................................................ix FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT.............................................................................................. 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................ 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position ....................................................................................................27 Statement of Activities.......................................................................................................... 28 Fund Financial Statements: Balance Sheet- Governmental Funds................................................................................. 30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................... 33 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ......................................................................................... 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities.......................................................................................................... 36 Statement of Net Position - Proprietary Funds .................................................................... 37 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds.......................................................................................... 38 Statement of Cash Flows - Proprietary Funds..................................................................... 39 Statement of Fiduciary Net Position - Fiduciary Funds........................................................ 40 Statement of Changes in Fiduciary Net Position - Fiduciary Funds.................................... 41 Notes to Financial Statements.................................................................................................... 43 CITY OF RANCHO CUCAMONGA, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT JUNE 30, 2022 TABLE OF CONTENTS Page Number REQUIRED SUPPLEMENTARY INFORMATION Notes to Required Supplementary Information........................................................................ 107 Budgetary Comparison Information: Budgetary Comparison Schedule - General Fund............................................................. 108 Budgetary Comparison Schedule - Development Impact Fees......................................... 109 Budgetary Comparison Schedule - Lighting Districts ........................................................ 110 Budgetary Comparison Schedule - Housing Successor Agency....................................... 111 Budgetary Comparison Schedule - Fire District................................................................. 112 Budgetary Comparison Schedule - Federal Grants Fund.................................................. 113 Pension Information: Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan -Agent Multiple-Employer Plan ...................................................... 114 Schedule of Plan Contributions- Miscellaneous Plan - Agent Multiple-Employer Plan......................................................................................... 116 Schedule of Proportionate Share of the Net Pension Liability- Miscellaneous Rate Plan - Cost Sharing Multiple-Employer Plan.................................. 118 Schedule of Plan Contributions- Miscellaneous Rate Plan - Cost Sharing Multiple-Employer Plan............................................................................. 120 Schedule of Proportionate Share of the Net Pension Liability- Safety Rate Plan - Cost Sharing Multiple-Employer Plan............................................... 122 Schedule of Plan Contributions - Safety Rate Plan - Cost Sharing Multiple-Employer Plan............................................................................. 124 Schedule of Changes in Net Pension Liability/(Asset) and Related Ratios - PARS Retirement Enhancement Plan ............................................................................ 126 Schedule of Plan Contributions - PARS Retirement Enhancement Plan .......................... 128 Other Post-Employment Benefit Information: Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios.......................... 130 Schedule of Contributions- OPEB..................................................................................... 132 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet- Nonmajor Governmental Funds.................................................. 138 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds................................................................ 148 Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds: GasTax.............................................................................................................................. 157 Recreation.......................................................................................................................... 158 Beautification...................................................................................................................... 159 Landscape Maintenance Districts...................................................................................... 160 PedestrianGrant................................................................................................................ 161 Community Development Block Grant............................................................................... 162 Assessment Administration................................................................................................ 163 CITY OF RANCHO CUCAMONGA, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT JUNE 30, 2022 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds (Continued): AirQuality Improvement..................................................................................................... 164 MasiCommerce Center..................................................................................................... 165 MeasureI ........................................................................................................................... 166 LibraryServices ................................................................................................................. 167 PublicSafety Grants .......................................................................................................... 168 UsedOil Recycling............................................................................................................. 169 Library Services Grants...................................................................................................... 170 LitterReduction Grant........................................................................................................ 171 SAFETEA-LU Grant........................................................................................................... 172 UndergroundUtilities.......................................................................................................... 173 Citywide Infrastructure Improvement................................................................................. 174 Proposition1B.................................................................................................................... 175 Integrated Waste Management.......................................................................................... 176 SB1 —TCEP....................................................................................................................... 177 PublicArt Trust................................................................................................................... 178 StateGrants Fund.............................................................................................................. 179 AD 91-2 Redemption — Day Canyon.................................................................................. 180 PD85 Maintenance............................................................................................................ 181 CFD 2000-03 Park Maintenance ....................................................................................... 182 CFD 2017-01 No. Etiwanda............................................................................................... 183 CFD 2018-01 Empire Lakes .............................................................................................. 184 Enhanced Infrastructure Financing District........................................................................ 185 Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds: CapitalProjects Fund......................................................................................................... 186 Combining Statement of Net Position - Internal Service Funds............................................... 188 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds.............................................................................. 189 Combining Statement of Cash Flows - Internal Service Funds................................................ 190 Combining Statement of Fiduciary Net Position -All Custodial Funds .................................... 192 Combining Statement of Changes in Fiduciary Net Position -All Custodial Funds................. 196 CITY OF RANCHO CUCAMONGA, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT JUNE 30, 2022 TABLE OF CONTENTS Page Number STATISTICAL SECTION Financial Trends: Net Position by Component- Last Ten Fiscal Years......................................................... 202 Statement of Activities (Condensed) - Last Ten Fiscal Years ........................................... 203 Fund Balances of Governmental Funds - Last Ten Fiscal Years...................................... 205 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years................... 206 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property................................... 207 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years................................208 Principal Property Taxpayers- Current Year and Nine Years Ago ................................... 209 Property Tax Levies and Collections - Last Ten Fiscal Years........................................... 210 Principal Sales Tax Remitters- Current Year and Nine Years Ago .................................. 211 Debt Capacity: Ratios of Outstanding Debt by Type - Last Ten Fiscal Years............................................ 212 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years..............................214 Direct and Overlapping Debt.............................................................................................. 215 Legal Debt Margin Information - Last Ten Fiscal Years ....................................................216 Pledged-Revenue Coverage - Last Ten Fiscal Years .......................................................217 Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Calendar Years................................... 218 Principal Employers - Current Year and Nine Years Ago..................................................219 Operating Information: Full-Time and Part-Time City Employees by Function - Last Ten Fiscal Years................ 220 Operating Indicators by Function - Last Ten Fiscal Years................................................. 221 Capital Asset Statistics by Function - Last Ten Fiscal Years............................................. 222 City of Rancho Cucamonga Annual Comprehensive Financial Report June 30, 2022 Introductory Section THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO CUCAMONGA 10500 Civic Center Drive I Rancho Cucamonga,CA 91730 1909.477.2700 1 www.CityofRC.us December 12, 2022 Honorable Mayor, Members of the City Council, and Citizens of the City of Rancho Cucamonga: The Annual Comprehensive Financial Report (ACFR) of the City of Rancho Cucamonga for the Fiscal Year ended June 30, 2022, is submitted herewith. This report consists of management's representations concerning the finances of the City. Management assumes full responsibility for the completeness and reliability of all information presented in this report, based on a comprehensive internal control framework established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than an absolute, assurance that the financial statements are free of material misstatement. The City's financial statements have been audited by Lance, Soll & Lunghard, LLP, certified public accountants. The goal of the independent audit was to provide reasonable assurance that the City's financial statement is free of material misstatement. Based upon their audit, the auditors have issued an unmodified("clean")opinion on these financial statements.Their report is located at the front of the financial section of this report. Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of Rancho Cucamonga The City is located in southern California and the westernmost portion of San Bernardino County. As a geographic location to major cities, the City is approximately 45 miles east of Los Angeles, 20 miles west of San Bernardino, and 115 miles north of San Diego. The City is immediately located between the cities of Upland to the west, Ontario to the south,and Fontana to the east.The City's current estimated population is 174,476, making it the fourth largest of the county's 24 cities and the 29th largest in California. The City is a 47 square mile city. Although the City was incorporated in 1977, the community was shaped years prior. Alta Loma, Etiwanda, and Cucamonga experienced massive and uncontrolled growth due to Los Angeles and Orange County families seeking affordable housing. In 1975, the Tri-Community Incorporation Committee was created to propose the formation of a new city because citizens were concerned about the future and understood that their vision would allow the area to manage development. The proposal went before the voters in November of 1977, and the incorporation was approved. The City is a general law city and operates under the Council-Manager form of city government, with a five-member City Council. Council members serve staggered four-year terms. Council elections are held in November of even-numbered years.The Mayor is elected at large,and Council members are elected based on geographic districts.There is no limit on the number of terms an individual can serve as Mayor or Council member. i The City provides a full range of municipal services, including police, public works, planning, building and safety, recreation, library, animal care and control, community improvement, and economic development. The City contracts with other governmental entities, private firms, and individuals to deliver specific services, including police services provided by the San Bernardino Sheriff's Department. Fire services are provided by the Rancho Cucamonga Fire Protection District, a legally separate entity, but are included within the City's reporting entity for financial reporting purposes. A different government agency provides water and sewer services. The City has included within its reporting entity for financial reporting purposes all agencies for which it is financially accountable.These agencies include the Rancho Cucamonga Public Improvement Corporation, the Rancho Cucamonga Fire Protection District, the Rancho Cucamonga Library, and the Rancho Cucamonga Public Financing Authority. The activities of these agencies are included in these financial statements. The Rancho Cucamonga Public Improvement Corporation was established for charitable purposes, including rendering financial assistance to the City by financing, acquiring, constructing, improving, and leasing public improvements to benefit residents of the City and the surrounding area. The Rancho Cucamonga Fire Protection District was taken over from the County of San Bernardino in July 1989 to provide fire suppression and protection to the City. The Rancho Cucamonga Library became a part of the City when it withdrew from the San Bernardino County Library System in July 1994. It strives to inform and enrich our community by providing access to traditional and technologically innovative resources. It also supports and encourages education and the love of reading in a welcoming atmosphere with a knowledgeable, service-oriented staff.The Rancho Cucamonga Public Financing Authority was established to facilitate the financing and the refinancing of construction, expansion, upgrading, and improvement of the public capital facilities necessary to support the rehabilitation and construction of residential and economic development within the City. The former Redevelopment Agency of the City of Rancho Cucamonga (RDA) was dissolved on February 1, 2012. Upon dissolution, the assets and liabilities of the RDA were transferred to the Successor Agency of the RDA. The City is obligated to report the resources and activities of the Successor Agency in a separate Private-Purpose Trust Fund, which is also included in these financial statements. Additional information on all these agencies can be found in Note 1 to the financial statements. The City adopts an annual budget,which the City Council adopts by June 30 each year. Each department's budgeted appropriations are controlled at the character of expense level. These levels are categorized as personnel services, operations and maintenance, capital outlay, debt service, cost allocation, and transfers out to other funds.The budget is monitored at the character of expense level, but the legal level of budgetary control, that is, the level at which expenditures cannot exceed appropriations, is the fund level within the General Fund,as well as Special Revenue and Capital Projects Funds.The use of an encumbrance system further maintains budgetary control. Revenues are also estimated annually in the adoption of the annual budget. Revenues and expenditures are monitored continuously during the Fiscal Year, with quarterly updates provided to the City Council. Local Economy Rancho Cucamonga has a diverse office, light manufacturing and distribution, and retail business, which emphasizes the City's efforts at attracting and retaining sales tax-generating businesses to help provide a stable financial base. The City could be considered a"bedroom community"due to the sprawling suburban development that took place during the 1980 and 1990s; however, unlike other communities of this status, due to post-proposition 13 incorporation, Rancho Cucamonga receives a smaller property tax share than ii the Rancho Cucamonga Fire Protection District and neighboring cities, about 5 cents for every dollar.Thus, revenue diversification beyond property and sales tax which comprise a substantial share of the City's general revenue budget is both important and necessary. While property tax is a stable revenue source for the City, sales tax can vary depending on consumer and economic cycles. Other significant revenue sources for the City include franchise fees and transient occupancy taxes. The commercial section of the City is anchored by Victoria Gardens, the highest taxable value property in Rancho Cucamonga. Approximately 20% of the City's sales tax comes from Victoria Gardens. Tenants include Macy's, JCPenny, H&M, AMC Theatres, and numerous dining establishments. Despite being a sizeable and popular regional mall, Rancho Cucamonga is not the largest sales tax-generating cities in San Bernardino County. Instead, Rancho Cucamonga is relatively modest for sales tax generation for its size, receiving fewer sales tax receipts than larger nearby cities due to their large e-commerce warehouses and/or auto malls. Statewide, these neighboring cities generate sales tax per capita ranging from $377 to $625 and are in the top 100 rankings. In comparison, Rancho Cucamonga is a respectable but average sales tax performer; we ranked 238th in sales tax per capita ($222) out of 539 cities and counties for the calendar year 2021 (up from 258th in the calendar year 2020). As the City matures, it is taking a more nuanced approach to its revenue needs. As mentioned, Rancho Cucamonga cannot rely on property taxes alone and seeks a combination of property taxes, sales taxes, and other revenue sources. Property and sales taxes comprise approximately 70% of general revenues for the City, and transient occupancy taxes and franchise fees add up to 12%. To that end, City staff evaluates development growth in a revenue per acre framework as an opportunity to maximize and diversify our revenue stream. By being selective and waiting for the suitable types of development which create more value per acre relative to their uses,the City will help grow and develop stable revenue sources over the long term while population, operating, and capital costs increase. Government agencies, such as the City and K-12 school districts, comprise the majority of the top list of principal employers within the City. Besides governmental employers, two of the largest single employers in the City are Inland Empire Health Plan (IEHP) and Chaffey Community College. IEHP, a joint powers agency, is the county's top ten largest Medicaid health plan and largest not-for-profit Medicare-Medicaid plan. IEHP organizes health care for over 1.5 million members in San Bernardino and Riverside counties and is the most extensive local Initiative plan in the Inland Empire region, serving more than 90% of the Medi-Cal managed care market compared to its commercial counterpart. Chaffey College was founded in 1883, making it one of the oldest community colleges in California, serving students in Rancho Cucamonga and the immediate region. The community college provides students with multiple degrees that transfer to four-year universities and colleges. Rancho Cucamonga experienced a slow but consistent recovery after the Great Recession. Steady job growth occurred in San Bernardino County, and the City's unemployment rate declined by 7.6% from the 2010 peak of 10.5%to 2.9% by 2019.The pandemic disrupted that trend and briefly caused unemployment to a spike in 2020 to 7.9%. The current unemployment rate has dropped to 3.1% as of August 2022. Median home prices were not affected by the pandemic. The current median price for detached single-family homes increased by over 18% last year, the largest single-year growth since 2013; although substantial jumps in interest rates relative to recent lows will likely slow or flatten that growth going into next year. Similar to the previous year, the City's market continues to push for more moderate and higher-end apartment projects. There are currently more than 1,200 apartments under construction, and more have been entitled or going through the entitlement process. Despite these recent trends, single-family residential comprises over 44,000 units compared to just under 21,000 multi-family residential units in Rancho Cucamonga. iii Long-term financial planning The City prepares revenue and expenditure projections as part of the annual budget, which is an integral part of the City's budget process. City staff using historical information, expert analysis, and data collected from the state, local, and professional organizations, generates an overall picture of the economic status of the local community. City budget staff then produce a financially conservative picture of the near future. Concurrent with the near-term revenue projections, City budget staff utilize the same data and information to maintain a running five-year forecast to help guide Rancho Cucamonga's medium and long-term planning for revenue and expenditures. Additionally, on an annual basis, the City updates a five-year Capital Improvement Program for projects. For the significant revenue sources, the City projects an increase in sales tax revenue of 18.79% over the Fiscal Year 2021/22 budget. This significant increase is due to the City's sales tax base rebounding well during the calendar year 2021 from the economic impacts of COVID. Continued, yet decelerating sales tax growth is anticipated into 2023. Property taxes are projected to increase by 5.52% due to the property turnover rate, pricing and appeals exposure, new construction activity, and Proposition 13's annual inflation adjustment. Property tax in lieu of vehicle license fee, categorized with property tax, is expected to increase 8.63% from the Fiscal Year 2021/22 due to growth in assessed valuation for properties within the City. Additionally, the City periodically reviews and updates its user fees to recover the minimum costs of providing services for which a fee is charged. The City's financial policy requires adopting a balanced operating budget each year. A balanced budgeted means that expenditures are equal to or less than the budgeted revenues and available fund balance. Any one-time revenues received are to be used for one-time costs. Any fund balance reserves are used for non-recurring expenditures, such as capital projects, but not for ongoing operations. The only exception to that policy is the use of reserves for changes in economic circumstances, which the City's fund balance policy governs its usage. Adequate fund balance, or reserve, levels are necessary for the City's overall financial management strategy. It is the responsibility of the City Council to maintain a sufficient level of reserve funds to provide for the orderly provision of services to the citizens of the City of Rancho Cucamonga. The City Council can decide the circumstances under which the reserves can be used. From time to time, the City Manager and the Finance Director may make recommendations as to the level of reserve funds necessary for prudent fiscal management. Reserve levels shall be reviewed at least annually during the budget process to ensure that they are consistent with the conditions faced by the City. The City received the GFOA Distinguished Budget Presentation Award for its Fiscal Year 2021/22 annual budget document. A governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device to qualify for the GFOA award. The City believes that the Fiscal Year 2022/23 budget document submitted to the GFOA for award consideration meets these high standards. Major initiatives/projects • Second Story and Beyond° Capital Project— Second Story and Beyond° is an innovative project, evolving Library Services by blending traditional lifelong learning with child development and informal education. This one-of-a-kind project will create fun, play-based, interactive, and immersive experiences for visitors of all ages by installing museum-quality exhibits. Second Story and Beyond' supports collaboration and 21st-century skills and will help children build an ecosystem of interdependent literacies. It will combine dynamic, interactive exhibits with creative programs engaging visitors as creators and innovators through open-ended play. iv • The $5.3 million tenant improvement stage of the Second Story and Beyond° project will occur early in the Fiscal Year 2022/23. Museum exhibits will be fabricated throughout the year and installed in early 2023. A soft launch of the new service is anticipated in June 2023, followed by an official Grand Opening event in July. Significant project enhancements have been made possible through a $2 million grant from San Bernardino County and a $1 million grant from the federal government through its NASA Fund. • Fire Station 178—This new two-story station on Town Center Drive and Terra Vista Parkway broke ground in the Fiscal Year 2021/22. Fire Station 178 is located in the southern portion of Rancho Cucamonga, where the City has an extensive office, residential and mixed-use development. This $15 million project will address systemwide draw-down issues and provide a location for specialized equipment used to access these facilities. This station will be home to the new electric fire truck and one-day the 9/11 Memorial Park. Fire Station 178 will be the first station built using the design-bid-build model, which is anticipated to be used in years to come for the new Fire Station 179 on 8th Street and future replacement stations, including Fire Station 171 on Amethyst Street. Additionally, Fire Station 178 will provide a centralized, in-house, secure storage location for City records, permitting fast and accurate retrieval and reducing commercial storage costs. Presently, the City's paper records are archived at an offsite commercial storage facility; however, included in the Fire Station 178 project is a new records repository for $944,000, split between the City and Fire District. • Etiwanda Grade Separation — The design and right-of-way phases of the Etiwanda Grade Separation Project are planned to continue through the beginning of the Fiscal Year 2022/23, with construction anticipated to begin in Fiscal Year 2023-24. This project will construct a bridge over the railroad tracks that cross Etiwanda Avenue between Arrow Route and Napa Street. The project will eliminate conflicts and congestion currently caused by the existing at-grade crossing and improve connectivity and traffic flow in the southeast industrial area of the City. Though this project has been challenging and complex, it will ultimately result in a significant multi-million investment in infrastructure that will foster development in this area and help to achieve goals set out in the new General Plan. • Dog Park—Construction of the$3.9 million Central Park dog park will include three half-acre fenced enclosures for small and large dogs, a paved parking lot area, a new landscape consisting of turf, decomposed granite, various trees, and drought-tolerant planting, and various site amenities for dogs and owners. The dog park will also require constructing a new drive approach and entrance at Base Line Road and Spruce Avenue to allow access to the dog park. The construction of the Dog Park is the next phase of a master-planned Rancho Cucamonga Central Park • Expansion of municipal broadband—Construction of the Rancho Fiber network will continue in the Fiscal Year 2022/23. Our goal is to expand the program's customer base and provide high-speed internet to businesses and residents in the service area. In the Fiscal Year 2022/23, the City will continue work on extending service along Haven Avenue, opening up the opportunity for approximately 36 new commercial businesses. A new commercial service extension on Arrow Route will serve the industrial development area from Etiwanda Avenue. Development of this area will serve industrial development and is incorporated with the Rancho Cucamonga Municipal Utility's line extension from Etiwanda Avenue.Also, City staff anticipate that approximately 880 new residential customers could be added with the opening of the next phase of The Resort community development. • Financial Enterprise Application Replacement—A significant project for the Finance Department is replacing our 20+ year financial system software application. This once-in-a-career, multi-million project will increase productivity by digitizing routine transactions, electronically routing requests and approvals via workflows, eliminating paperwork, and capturing more data in everyday transactions to improve data analysis.Although the implementation is a joint project led by Finance, Human Resources, and the Department of Innovation and Technology, the entire organization will evaluate the day-to-day, weekly, monthly, quarterly, and yearly activity changes during implementation. v Awards and acknowledgments The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Rancho Cucamonga for its comprehensive annual financial report for the Fiscal Year ended June 30, 2021. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for the preparation of state and local government financial reports. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. The City of Rancho Cucamonga has received a Certificate of Achievement for Financial Excellence for the last thirty-four consecutive years and believes that our current annual comprehensive financial report continues to meet the Certificate of Achievement for Excellence in Financial Reporting program's requirements. The preparation of this report could not have been accomplished without the dedicated services of the entire Finance Department. We appreciate and would like to commend all the City departments who assisted and contributed material to this document. We also recognize and would like to acknowledge the Mayor and members of the City Council for their interest and dedication in planning and conducting the financial operations of the City. In closing, an expression of appreciation for the City Council for their leadership and support and for their continuing efforts to main the City's fiscal health. Lastly, we thank Councilmember Sam Spagnolo, who passed away at the age of 80 with over 50 years of service to the Rancho Cucamonga community and will be remembered as a pillar of the community. Respectfully submitted, John R. Gillison Noah Daniels City Manager Finance Director vi CITY OF RANCHO CUCAMONGA CITY OFFICIALS JUNE 30, 2022 City Council L. Dennis Michael Mayor Lynne B. Kennedy Mayor Pro-Tem Ryan A. Hutchison Council Member Kristine D. Scott Council Member Vacant Council Member Administration and Department Heads City Manager John R. Gillison Assistant City Manager/Administrative Services Elisa C. Cox Deputy City Manager/Civic and Cultural Services (as of August 2022) Julie Sowles Deputy City Manager/Economic and Community Development Matt Burris City Attorney Nicholas R. Ghirelli City Clerk Janice C. Reynolds City Treasurer Jim Harrington Animal Services Director Veronica Fincher City Clerk Services Director Linda Troyan Community Services Director Jennifer Hunt-Gracia Engineering Services Director/City Engineer Jason Welday Finance Director Tamara L. Oatman Finance Director Noah Daniels Fire Chief Mike McCliman Human Resources Director Robert Neiuber Innovation and Technology Director Shelly Munson Library Director (Acting as of September 2022) Wess Garcia Planning and Economic Development Director(as of September 2022) Matt Marquez Police Chief Ernie Perez Public Works Services Director Bill Wittkopf vii CITY OF RANCHO CUCAMONGA ORGANIZATION CHART Citizens of Rancho Cucamonga City Clerk City Council City Treasurer City Attorney City Manager Administrative Civic and Police Economic and Services Cultural Services Department Community Development Fire Finance Community District Services Animal Care Human Library and Services Resources I Services Community Innovation and Records Improvement Technology Management Public Works Building and Engineering F Planning Safety Services Services viii Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rancho Cucamonga California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 Executive Director/CEO ix THIS PAGE INTENTIONALLY LEFT BLANK City of Rancho Cucamonga Annual Comprehensive Financial Report June 30, 2022 Financial Section THIS PAGE INTENTIONALLY LEFT BLANK LSU19 iii 0i• •• INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California Report on the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rancho Cucamonga, California, (the City) as of and for the year ended June 30, 2022, and the related notes to financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents 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, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter Change in Accounting Principle As described in Note 5 to the financial statements, in the fiscal year ended June 30, 2022,the City adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter. Responsibilities of Management 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; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. ! prlmeGlobal I&A «4 A&'_° L L•••• 'o .. To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,and design and perform audit procedures responsive to those risks.Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Other Reporting Responsibilities Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis; the budgetary comparison schedules for the General Fund, Development Impact Fees, Lighting Districts, Housing Successor Agency, Fire District Funds and Federal Grants Funds; the schedule of changes in net pension liability and related ratios for the agent multiple-employer plan; the schedule of plan contributions for the agent multiple-employer plan; the schedule of proportionate share of the net pension liability for the cost sharing multiple-employer plans; the schedule of plan contributions for the cost sharing multiple-employer plans;the schedule of changes in net pension liability/(asset)and related ratios for PARS retirement enhancement plan; the schedule of plan contributions for PARS retirement enhancement plan; the schedule of changes in net OPEB liability/(asset) and related ratios; and the schedule of contributions—OPEB as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the 2 L L•••• 'o .. To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated,in all material respects in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor's report thereon. Our opinions on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 12, 2022, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's 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. 0��, .4� 9,-44a V��Zo Brea, California December 12, 2022 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 Management's Discussion and Analysis This section of the Annual Comprehensive Financial Report of the City of Rancho Cucamonga (City) presents a narrative overview and discussion of the City's financial activities for the fiscal year ended June 30, 2022. This discussion and analysis should be read in conjunction with the basic financial statements and accompanying notes which follow this section. We hope that the information and the discussions provide the readers with a clear picture of the City's overall financial condition. Financial Highlights • The assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of resources at the close of the fiscal year by$1,440,250,887, an increase of$92,372,772 for the current fiscal year. The total net position consisted of $842,615,792 as net investment in capital assets; $465,103,382 as restricted; and $132,531,713 as unrestricted. • The total change in net position is $92,372,772, consisting of governmental activities of $90,249,834 and business-type activities of$2,122,938. • As of June 30, 2022, the aggregate ending fund balance of the City's governmental funds was $600,119,219, an increase of $66,713,701 from the prior fiscal year. The combined fund balance consisted of$23,658,120 as nonspendable, $381,476,346 as restricted, $148,122,714 as committed, $51,346,748 as assigned, and a deficit of$4,484,709 as unassigned. • At the end of the fiscal year, the General Fund reported a fund balance of $173,120,236, of which $23,311,819 was nonspendable, $16,162,437 was restricted, $101,962,810 was committed, and $31,683,170 was assigned. • The City's capital assets, net of accumulated depreciation and amortization, were $843,311,625, a decrease of $904,531 from the prior fiscal year. The total capital assets, net of depreciation, for governmental activities represented $800,559,420, and business-type activities represented $42,752,205. Overview of the Financial Statements This annual report consists of management's discussion and analysis (MD&A), basic financial statements, including the accompanying notes to financial statements, required supplementary information, and combining and individual fund statements and schedules for the nonmajor governmental and fiduciary funds. The basic financial statements are comprised of three components: 1) government-wide financial statements, 2)fund financial statements, and 3) notes to financial statements. Government-wide Financial Statements are designed to provide readers with a broad overview of the City's finances and are made up of the following two statements: Statement of Net Position and Statement of Activities. These statements are designed to provide information about the activities of the City as a whole and present a longer-term view of the City's finances. Both statements were prepared using accounting methods like those used by private-sector businesses: the economic resources measurement focus and the accrual basis of accounting. The Statement of Net Position presents information on the City's assets, liabilities, and deferred outflows and inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may indicate whether the City's financial position is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are 5 reported in this statement for some items that result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes, expenses pertaining to earned but unused compensated absences, and incurred but unpaid workers' compensation claims. Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a portion of their costs through user fees and charges (business-type activities). The City's governmental activities include general government; public safety for police, fire, and animal center; community development; community services; and engineering and public works. The City's business-type activities include the Municipal Utility, Fiber Optic Network, and Sports Complex. The government-wide financial statements reflect not only the activities of the City itself (known as the primary government), but also include the Rancho Cucamonga Public Improvement Corporation, the Rancho Cucamonga Fire Protection District, the Rancho Cucamonga Library, and the Rancho Cucamonga Public Financing Authority. Although legally separate, these entities are included as an integral part of the primary government because the City Council acts as the governing body for each entity. The sole purpose of each entity is to provide services entirely to and exclusively for the City. Fund Financial Statements are designed to report information about groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. Like other state and local governments, the City uses fund accounting to ensure and demonstrate finance-related legal compliance. The City's funds consist of three categories: governmental, proprietary, and fiduciary. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental funds financial statements focus on near-term inflows and outflows of spendable resources and balances of spendable resources available at the end of the fiscal year. Such information may help determine what financial resources are available in the near future to finance the City's programs. The governmental funds financial statements are comprised of the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances. Both of these statements were prepared using the current financial resources measurement focus and the modified accrual basis of accounting. The Budgetary Basis Statement of Revenues, Expenditures and Changes in Fund Balance is prepared on a modified cash basis of accounting different from Generally Accepted Accounting Principles (GAAP). Please see Note 1 of the notes to financial statements for additional information on the basis difference. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is helpful to compare the information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains many individual governmental funds organized according to their type (general, special revenue, and capital projects funds). Information is presented separately in the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, as well as for the Development Impact Fees, Lighting Districts, Housing Successor Agency, Fire District, and Federal Grants special revenue funds, which are major funds. Information from the remaining governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements and schedules. 6 Proprietary funds are generally used to account for services for which the City charges customers—outside customers or other departments/funds of the City. The proprietary funds financial statements provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains the following types of proprietary funds: • Enterprise funds report the functions presented as business-type activities in government-wide financial statements. The Municipal Utility and Fiber Optic Network enterprise funds are major funds. The Sports Complex enterprise fund is a nonmajor enterprise fund. • Internal service funds report the costs allocated internally amongst the City's functions. The City uses internal service funds to account for Equipment and Vehicle Replacement and Computer Equipment/Technology Replacement, which are presented as governmental activities in the government-wide financial statements. Fiduciary funds account for resources held for the benefit of parties outside the City. The City's private-purpose trust fund reports on the activities of the Successor Agency of the Former Redevelopment Agency and custodial funds are reported under the fiduciary funds. Since the resources of these funds are not available to support the City's own programs, they are not reflected in the government-wide financial statements. Accounting for fiduciary funds is much like that used for proprietary funds. Both are prepared using the economic resources measurement focus and the accrual basis of accounting. Notes to Financial Statements provide additional information essential to a complete understanding of the data provided in the government-wide and fund financial statements. Required Supplementary Information, other than Management's Discussion and Analysis (MD&A), is presented concerning the budgetary comparison schedules for the City's General Fund and major special revenue funds. Also included in this section are the City's net pension and OPEB liabilities and contributions related to those plans. The Combining and Individual Fund Statements and Schedules provide information for the nonmajor governmental and fiduciary funds and presented immediately following the required supplementary information. 7 Government-wide Financial Analysis Analysis of Net Position: Net position may serve over time as an indicator of a government's financial position. The City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by$1,440,250,887 at the close of the fiscal year. The following table is a condensed summary of the City's government-wide net position: Net Position June 30.2022 and 2021 (In Thousands) Governmental Business-Type Activities Activities Total 2022 2021 2022 2021 2022 2021 Assets: Current and other assets S 675.361 S 610.994 $ 25.065 5 33.762 S 700.426 $ 644.756 Net DPEB asset 9.163 5.724 - - 9.163 5.724 Net pension asset 9.241 3.691 417 185 9.658 3.876 Capital assets,net of depreciation 800,559 802.330 42.752 41.886 843,311 844,216 Total assets 1,494,324 1.422.739 68.234 75.833 1,562,558 1.498,572 Deferred outflows of resources 23.953 27,863 411 591 24.364 28,454 Liabilities: Current and other liabilities 30.359 43,832 2.169 2,735 32.528 46,567 Long-term net pension liabilities 46.126 98,243 1.261 2.952 47.387 101,195 Long-tern obligations outstanding 8.523 9,758 - 12.247 8.523 22.005 Total liabilities 85.008 151,833 3,430 17.934 88.438 169.767 Deferred inflows of resources 53.430 9,180 4.803 200 58.233 9,380 Net position: Investment in capital assets 799,864 801.334 42.752 39.126 842,616 840,460 Restricted 464,700 386.152 403 352 465,103 386,504 Unrestricted 115.275 102.103 17.257 18,812 132,532 120,915 Total net position S 1,379.839 $ 1.289.589 $ 60,412 $ 58.290 $ 1,440,251 $ 1.347.879 Net investment in capital assets reflects the City's investment in capital assets (e.g., land, infrastructure, building and improvements, vehicles and equipment) less any related outstanding debt used to acquire those assets. As of June 30, 2022, net investment in capital assets is reported as $842,615,792, which makes up 58.5% of the City's total net position. Compared to the prior fiscal year, net investment in capital assets increased by $2,155,778 or 0.3%. The City uses capital assets to provide services to its residents and businesses; therefore, these assets are not available for future spending. Furthermore, although the City's investment in capital assets is reported net of related debt, the resources to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate the debt. Restricted net position is reported as $465,103,382 or 32.3% of the City's total net position, which is an increase of$78,599,898 or 20.3%from the prior fiscal year. Generally,the increased restricted net position is due to increases in fund balance for the underlying special revenue funds, which restrict how the funds can be used. The City can use the total unrestricted net position of $132,531,713 to meet the City's obligations for its governmental and business-type activities. The unrestricted net position makes up 9.2% of the City's total net position. It is an increase of $11,617,096 or 9.6% from the prior fiscal year. At $115,274,716, the governmental activities make up most of the total unrestricted net position, and the business-type activities make up the balance of$17,262,997. Other significant changes in the statement of net position are as follows: • Capital assets are 54.0% of the City's total assets. In the current fiscal year, capital assets decreased by $904,531, or 0.3%. The net decrease comprises an increase in nondepreciable capital assets of$11,747,803 and a decrease in depreciable capital assets of$12,652,334. These changes are analyzed in the capital assets section of the MD&A. 8 • The City's total current and other assets increased by $55,670,253 or 8.6%. The net increase comprises a decrease in business-type activities of$8,696,467 and an increase in governmental activities of $64,366,720. The fluctuations from the prior fiscal year which account for this net increase are: o Cash and investments increased by$56,421,848 from the prior fiscal year. Generally, this results from increased cash inflows from modest revenue growth and decreased cash outflows from expense containment during the current fiscal year. The majority of the cash and investment growth is due to the increase in governmental activities of $48,093,037, which can be traced to the increase in the General Fund of$33,114,730. o An increase in notes and loans receivable of $5,747,357 is the net of an increase in governmental activities of $5,777,357 and a decrease in business-type activities of $30,000. The increase in governmental activities is related to loans for low and moderate-income housing, which is addressed with the Housing Successor Agency analysis later in the MD&A. o An increase in leases receivable of $8,234,892 consisting of increases in governmental activities increased by $4,766,818 and business-type activities by $3,468,074 from implementing GASB Statement No. 87, Leases. More information can be found in Note 5 in the notes to financial statements. o Restricted cash with fiscal agent decreased by$13,750,989 from the prior fiscal year. The decrease consists of governmental activities by$3,824,064 and business-type activities by $9,926,925. The change in governmental activities relates to the disbursement of loans from the Housing Successor Agency special revenue fund. The change in business-type activities is due to the defeasance of the 2019 Lease Revenue Bonds and its related cash held with fiscal agent. More information regarding the defeasance can be found in Note 8 in the notes to financial statements. o Restricted investments for pension rate stabilization decreased by $2,022,981 due to losses in the fair value. • The City reported a net OPEB asset, which increased by$3,438,815 or 60.1%, and a net pension asset for the PARS Retirement Enhancement Plan, which increased by $5,780,372 or 149.1%. Both increased due to positive net investment income compared to assumptions. See Note 13 in the notes to financial statements for more information on the City's PARS Retirement Enhancement Plan and Note 14 for the City's Other Post-Employment Benefits. • The City's current and other liabilities decreased by$14,038,949 or 30.1%. Governmental activities decreased by $13,472,325 due primarily to a decrease in unearned revenues of $11,237,555 in the current fiscal year. In the prior year, the City reported unearned revenues for the American Rescue Plan Act receipts received but not spent yet on eligible expenditures. During the current fiscal year, the City completed the required revenue loss replacement calculations, spent the grant funds on eligible activites, and recognized the revenues. The business-type activities reported a decrease of$566,624, primarily due to the defeasance of the 2019 Lease Revenue Bonds, which eliminated the reporting of debt due within one year. • The City's net pension liabilities decreased by$53,808,377 or 53.2%from the prior fiscal year. This is comprised of a decrease of $30,316,966 for the City's miscellaneous plan, $1,268,214 for the Fire District's miscellaneous plan, and $22,223,197 for the Fire District's safety plan. These decreases are primarily due to positive net investment income. See Note 12 in the notes to financial statements for more information on the City's pension plan obligations. • The City's long-term obligations decreased by $13,483,009 or 61.3% from the prior fiscal year. Again, the decrease is due to the defeasance of the 2019 Lease Revenue Bonds. See Note 8 in the notes to the financial statement for more information on the City's long-term debt obligations and the defeasance of the 2019 Lease Revenue Bonds. 9 Analysis of Changes in Net Position: The following table presents condensed information showing how the City's net position changed during the most recent fiscal year. As previously stated, all changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Changes in Net Position Year Ended June 30.2022 and 2021 (In Thousands) Governments[ Business-Type Activities Activity Total 2022 2021 2022 2021 2022 2021 Revenues: Program Revenues: Charges for services $ 27,573 $ 30.313 $ 15.125 $ 13,004 $ 42.698 S 43,317 Operating grants and contributions 39,847 15.902 133 - 39,980 15,902 Capital grants and contributions 30,787 24.769 2,822 1.443 33.609 26.212 General Revenues: Property taxes 96,972 91.686 - - 96.972 91,686 Admissions tax 2 - 152 33 154 33 Transientoc cup ancytaxes 4,423 2,727 - - 4.423 2,727 Sales taxes 40,768 34.566 - - 40.768 34.566 Franchise fees 9.991 9.229 - - 9,991 9,229 Motor vehicle in-lieu 202 129 - - 202 129 Use of money and property (12.450) 5.957 (1,152) (12) (13.602) 5,945 Other 18,419 7.576 6 11 18.425 7,587 Gain on sale of capital asset 1,062 - 1,062 - Total Revenues 257,596 222,854 17.086 14,479 274,682 237,333 Expenses: General government 18,945 22.450 - - 18.945 22.450 Public safety-police 45,827 44.201 - - 45.827 44,201 Public safety-fire protection 38,906 43.820 - - 38.906 43.820 Public safety-animal center 2,363 2,653 - - 2,363 2,653 Community d eve€opment 17.758 21.053 - - 17.758 21.053 Community services 13.173 12.922 - - 13.173 12.922 Engineering and public works 29,237 33.574 - - 29.237 33,574 Interest on long-term debt 76 270 - - 76 270 Municipal Utility - - 13.504 10.747 13,504 10.747 Fiber Optic Network - - 801 1.045 801 1.0446 Sports Complex - - 1.720 2.303 1.720 2.303 Total Expenses 166,285 180143 16,025 14,095 182,310 195.038 Excess of Revenues Over Expenses 91,311 41,911 1.061 384 92,372 42.295 Transfers (1.061) (810) 1.061 810 - - Change in Net Position 90.250 41.101 2.122 1.194 92.372 42.295 Net Position at Beginning of Year 1.289,589 1.239.870 58,290 57,096 1.347.879 1,296,966 Restatement of Net Position - 8.618 - - - 8.618 Net Position at End of Year $ 1.379,839 $ 1,289.589 $ 60,412 $ 58.290 $ 1,440.251 $ 1,347,879 10 Governmental Activities Revenues: For the fiscal year ended June 30, 2022, total revenues from governmental activities were $257,595,939, total expenses were $166,284,888, and transfers to business-type activities were $1,061,217. Functional expenses are funded directly by program revenues,while taxes and other revenues fund the remainder. Program revenues are resources obtained from outside of the City and charges for services. They include, primarily, amounts received from those who purchase, use, or directly benefit from a program or grants and contributions that are restricted to specific programs The following charts provide a snapshot of revenues from the City's governmental activities for the Fiscal Years 2021/22 and 2020/21, showing the primary revenue sources as percentages. Following the charts is an analysis of the changes in revenues from the prior fiscal year to the current fiscal year. Governmental Activities Fiscal Year 2021122 Other general revenues Other Taxes 31% Charges for services Sales tams 11% 16% Operating grants and contributions � 15% f Property taxes Capital grants and 16% contributions 12% Property tams-Fire District 21°/o Governmental Activities Fiscal Year 2020121 Other general revenues Other Taxes 6% 5% Charges for senAces Operating grants and 14% contributions Sales tams 7% 16% -----------------.. -- ---- -- Capital grants and , contributions 11% Property taxes % 17% Property taxes -Fire District - 24% 11 Revenues from taxes in the amount of$152,155,625,and program revenues, including charges for services in the amount of$27,573,414, operating contributions and grants in the amount of$39,846,497, and capital contributions and grants of$30,787,358,are the largest revenue sources for governmental activities. Taxes consist of property taxes, sales taxes, franchise fees, transient occupancy taxes, and other taxes, the largest of which are property and sales taxes. The Fire District receives a separate share of property taxes restricted for fire suppression and prevention activities. The following table is a condensed summary of the City's governmental tax revenues for Fiscal Years 2021/22 and 2020/21: Governmental Activities (In Thousands) Taxes: 2022 2021 Property taxes: Property taxes $ 41.481 $ 38,857 Property taxes-Fire District 55.491 52,829 Total property taxes 96,972 91,686 Sales taxes 40.768 34,566 Other taxes: Admissions tax 2 - Franchise fees 9.991 9,229 Transient occupancy taxes 4.423 2,727 Total other taxes 14A16 11,956 Total taxes $ 152.156 $ 138.208 • Property tax is an ad valorem tax imposed on real property such as land, buildings, and tangible personal property. Property tax revenue is collected by the County of San Bernardino and allocated according to State law among cities, counties, school districts, and special districts. The City's property owners pay a basic tax equal to 1% of the assessed value of real property. The City's share of each property tax dollar is approximately $0.0511 (shared between the City and Rancho Cucamonga Library), and the Fire District's share of this property tax dollar is approximately $0.1248. Also included in property tax are property taxes in lieu of vehicle license fees (VLF), which the City receives and is based on the growth of gross assessed valuation from the prior year. Property taxes increased by $5,285,954 or 5.8% from the prior year due to increases in property tax in lieu of VLF, property transfer tax, and distributions of residual tax increment and pass-through payments from the former redevelopment agency. Property taxes in lieu of VLF increased by $1,029,334, and property transfer tax increased by $727,391 from the prior fiscal year. As previously mentioned, property tax in lieu of VLF increases based on the growth of gross assessed valuation. Property tax transfer tax is assessed at $0.55 per $1,000 of property value when properties are transacted. Like other agencies, the City has experienced a large volume of residential property turnover at historically high valuations over the last two fiscal years; the current median price for a detached single-family residence increased the previous calendar year by 18%, which was the largest since 2013. City management expects that secured property taxes will continue to grow, but at a slower pace, in the upcoming years because of the property turnover over the last two fiscal years. The City and Fire District received a share of residual receipts from the County of San Bernardino, which are remaining tax increment revenues after the form redevelopment agency has paid its obligations. The County of San Bernardino revised the residual receipt calculation in prior years. Due to the revised methodology, the share of residual receipts increased for City and Fire District. Respectively, the City and Fire District received $388,383 and $606,676 more residual receipts than in the current fiscal year. Additionally, the Fire District, a pass-through entity for the former redevelopment agency, receives direct payments from the former redevelopment agency. The Fire District received $727,391 more in pass-through payments in the current year. More information about the dissolution of the former redevelopment can be found in Note 18 of the notes to financial statements. 12 • California sales tax is imposed on the total retail price of any tangible personal property (excluding a variety of state-mandated exemptions), and use tax is imposed on the purchaser for eligible transactions when sales tax has not been collected. The sales and use tax rate in San Bernardino County is currently 7.75%,of which the City receives 1%from the California Department of Tax and Fee Administration. The City is also allocated a share of the countywide use tax pool based on its proportionate share of the sales tax generated in the County. • Sales taxes increased by $6,201,473 or 17.9% due to the City's sales tax base rebounding from the economic impacts of the pandemic. City Management has noted significant growth in specific business categories, including building and construction, fuel and service stations, and general consumer goods. Based on preliminary information and analysis, city management expects continued but decelerating sales tax growth in the upcoming fiscal year as the impacts of record high inflation will continue to negatively impact discretionary consumer spending. • Transient occupancy taxes is a 10% tax applied to the cost of the hotel or other lodging stays of less than 30 days. Transient occupancy taxes increased by $1,696,593 or 62.2% as the factors influencing transient occupancy taxes include business and leisure travel, room rate increases,and new hotel development, which were all impacted during the pandemic. City management expects that transient occupancy taxes will increase in the upcoming fiscal year as two new hotels will be opened in the City. The following table is a condensed summary of the governmental program revenues by functional category for Fiscal Years 2021/22 and 2020/21: Charges Operating Capital for services contributions and grants contributions and grants (In Thousands) 2022 2021 2022 2021 2022 2021 FunctionslPrograms: General government $ 10.176 $ 9.476 $ - $ - $ 373 S 565 Public safety-police 998 1.358 27.347 481 187 - Public safety-fire protection 141 117 27 52 - Public safety-animal center 146 110 - - - - Community development 11.627 11.771 2,304 7.242 109 223 Community services 610 484 2,459 332 - - Engineering and public works 3.875 6.998 7,710 7.795 30.118 23.981 Total $ 27573 $ 30.314 $ 39,847 $ 15.902 $ 30.787 $ 24,769 Charges for services decreased by $2,739,862 or 9.0%, a net increase for governmental functions. The significant changes include: • Increase of $540,779 for business licenses and business license penalties due to an improving business climate combined with additional staff focused on increasing the number of business inspections for business license compliance. • Increase of $349,814 for recreation fees charged to customers for recreational programs and services reopening after closing during the pandemic. • Increase of$289,933 for the resumption of administrative citation issuances,which the City Council suspended as those fines impacted individuals and businesses already impacted by the pandemic. • Decrease of$3,283,754 to report developer impact fee revenues as capital contributions and grants as their ultimate use is towards capital projects. 13 Operating contributions and grants increased by $23,944,654 or 150.6%, a net increase for the governmental functions. The significant changes include: • Decrease of $5,665,791 of Federal grant funding related to the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act. • Increase of$1,370,054 in contributions from the Rancho Cucamonga Library Foundation Support to the Rancho Cucamonga Library for general library operations and construction of the Second Story and Beyond®. • Increase of$648,982 of Federal grant funding related to the Shuttered Venues grant, which offset operational costs of the Cultural Service Center during its reopening. • An increase of $26,835,530 of Federal grant funding related to the American Rescue Plan Act, which was based on the revenue loss replacement category, was used to offset the public safety costs of the San Bernardino Sheriff contract. Capital contributions and grants increased by $6,018,758 or 24.3%, a net increase for governmental functions. The growth is primarily due to increased development impact revenue with the Development Impact Fee special revenue fund of$6,561,294. Expenses: The following chart provides a snapshot of the City's governmental activities for Fiscal Years 2021/22 and 2020/21, showing the expenses by function. Governmental Expenses by Functions/Programs (In Thousands) Public safety-police Public safety-ire protection Engineering and public works General government Community development Community services Public safety-animal center Transfers to business-type activities Interest on long-term debt 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45.000 ■June 30,2022 June 30.2021 The City's governmental activities expenses decreased by $14,658,240 or 8.1% from the prior fiscal year. The total net decrease was attributed to increases in public safety— police of$1,626,192 and community services of $250,809. These increases were offset by decreases in general government of $3,505,187, public safety— fire of $4,913,967, public safety — animal center of $290,024, community development of $3,295,601, and engineering and public works of $4,336,748. Interest on long-term debt decreased by $193,714, and transfers to business-type activities increased by$251,460. The following is a summary of significant changes in governmental activities expenses: • Change for the net pension liability for the City's miscellaneous plan and the net pension asset for the PARS Retirement Enhancement Plan resulted in a reduction of functional expenses in the current year. As mentioned,the reduction in the net pension liability and increase in the net pension asset, respectively,were the result of positive investment performance. Accordingly,the calculated proportion of the changes by function resulted in the following: o General government decreased by$2,318,067 o Public safety—animal center decreased by$442,018 14 o Community development decreased by$1,826,169 o Community services decreased by$805,803 o Engineering and public works decreased by$2,118,583 • Public safety— police increased by$1,626,192 or 3.7% from the prior fiscal year due to increased public safety contract costs and additional staffing added by the City with the San Bernardino County Sheriffs Department. • Public safety—fire decreased by $4,913,967 or 11.2% from the prior fiscal year, primarily due to the change in the net pension liabilities for the Fire District's miscellaneous and safety plans and the net OPEB asset. The changes in the net pension liabilities and the net OPEB asset decreased the function by $10,019,539. That decrease was offset by increases in personnel salaries, overtime, and benefits by $2,681,055 and depreciation expense of $3,864,622 attributed to Fire District capital assets. Business-Type Activities The $18,147,854 combined revenues, including transfers from the governmental activities, of the City's business-type activities were $2,122,938 more than the expenses of $16,024,916. Since the proprietary funds provide the same information found in the government-wide statements, a more detailed discussion of the City's business-type activities is found in the financial analysis of the City's funds. Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The following financial analysis is performed only for governmental and proprietary funds. The fiduciary funds are excluded from this analysis as they do not represent resources available to the City. Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. On June 30, 2022, the City's governmental funds reported combined fund balances of$600,119,219, an increase of $66,713,701 from the prior fiscal year. Of the total fund balance, $23,658,120 was nonspendable, associated with prepaid costs, deposits, and advances to other funds; $381,476,346 was classified as restricted for specific purposes; $148,122,714 was committed by the City Council; and $51,346,748 was assigned by the City Manager for certain uses and functions. The deficit of$4,484,709 unassigned fund balance gets eliminated with the receipt of future funds, except for the Lighting Districts Fund special revenue fund, which is eliminated as repayment of the interfund advances occurs. See Note 7 in the notes to financial statements for more information on interfund advances. Governmental revenues totaled $254,662,217, while expenditures were $184,596,622. Other financing sources, such as transfers from other funds, leases, and proceeds from the sale of capital assets, totaled $33,788,039, and other financing uses totaled $37,129,933 in the form of transfers out to other funds. The General Fund is the general operating fund of the City. On June 30, 2022, the General Fund reported a total fund balance of $173,120,236, consisting of $23,311,819 as nonspendable, $16,162,437 as restricted, $101,962,810 as committed, and $31,683,170 as assigned. More detailed information on these fund balance classifications can be found in Notes 1 and 17 in the notes to financial statements. 15 The following table presents the summary of revenues and expenditures of the General Fund for Fiscal Years 2021/22 and 2020/21: Revenues and Other Financing Sources 2022 2021 Revenues: Taxes $ 87,561,737 $ 76,601,967 Licenses and permits 6,207,356 5,667,304 Intergovernmental 687,958 688,302 Charges for services 5.663,958 4.973,242 Use of money and property (4,575,630) 814,603 Fines and forfeitures 1,287.454 1.227.698 Contributions 59,070 17,698 Miscellaneous 14,971,128 3,272,491 Total Revenues 111,863,031 93,263,305 Other Financing Sources: Transfers in 29,617,859 4,265,848 Leases 226,622 - Sale of capital assets 3,318,081 23,317 Total Other Financing Sources 33,162,562 4,289,165 Total Revenues and Other Financing Sources $145,025,593 $ 97.552,470 Expenditures and Other Financing Uses 2021 2020 Expenditures: General government $ 15,923,699 $ 14,610,180 Public safety-police 44.999.347 43.239.756 Public safety-animal center 2.772,844 2.399,155 Community development 6,089,377 6,458,490 Community services 4,589,200 3,459.866 Engineering and public works 12,381,485 11,440,332 Capital outlay 3,122,875 6,833,492 Debt service-interest and fiscal charges 7,208 8,195 Total Expenditures 89.886,035 88,449,466 Other Financing Uses: Transfers Out 8,776,007 3,605,636 Total Expenditures and Other Financing Uses $ 98,662,042 S 92,055,102 The following is a summary of the significant changes in General Fund revenues, expenditures, and other financing sources and uses: • Taxes totaled$87,561,737, accounted for 60.4%of the total revenues and other financing sources, and increased by$10,959,770 or 14.3%from the prior fiscal year. As previously mentioned, taxes consist of property taxes, sales taxes, franchise fees, transient occupancy taxes, and other taxes, the largest of which are property and sales taxes. The General Fund's property taxes increased by $2,399,163 primarily due to, as previously mentioned, increases in residual receipts from the former redevelopment, growth in the assessed value of properties resulting in increased property tax in lieu of VLF, and the turnover of properties resulting increased property tax transfers. Sales tax has increased by $6,201,472 due to a rebounding sales tax base as the economic impacts of the pandemic are alleviated. Lastly, transient occupancy taxes increased by $1,696,593 due to growing business and leisure travel, room rate increases, and new hotel development. • Licenses and permits increased by $540,052, or 9.5%, due to increased business licenses and related penalties. • Charges for services increased by $690,716 or 13.9%, primarily due to recreation charges for services. 16 • Use of money and property decreased by$5,390,233 or 661.7% due to a temporary adjustment to bring investments to fair value at the end of the fiscal year. The City invests excess funds in fixed-income securities, which typically decrease in value when interest rates rise. These changes are unrealized until investments are sold at a loss. City management has sold securities at a loss to purchase securities with higher yields. However, the strategy is reserved only for situations when the returns on the higher-yielding investment offset the loss while still producing excess yields. • Miscellaneous revenue increased by $11,698,637 or 357.5% due to two transactions. First, the City received $5,150,000 from development agreements to address impacts of affordable housing demand, future greenhouse gas emissions, electric vehicle charging, and various other related impacts associated with warehouse, industrial, and commercial developments. Lastly, the City recognized $5,251,397 in unclaimed property spanning several decades after following State regulations. • Transfers increased by$25,352,011 due to the transfer of funding from the American Rescue Plan Act in the amount of$26,835,530 for allowable public safety costs, as previously discussed. • The sale of capital assets increased by $3,318,081 due to the sale of land, which is discussed in the capital assets section of the MD&A. • Personnel services expenditures increased from the prior year for general government by $595,808, public safety— animal center by $299,934, community development by $288,554, and community services by$481,223. • Public safety— police increased by$1,759,591 or 4.1% from the prior fiscal year due to increased public safety contract costs between the City and the San Bernardino County Sheriffs Department. • Community services increased by$1,129,334 or 32.6% from the prior fiscal year due to increases in personnel costs, as previously mentioned, as well as in operations and maintenance and contractual services of$401,616 as a result of reopening facilities throughout the fiscal year. • Engineering and public works increased by $941,153 or 8.2% from the prior fiscal year, primarily due to an increase in the internal service fund user charges for equipment by$832,680. • Capital outlay decreased by $3,710,617 or 54.3% due primarily to the completion of the public safety facility in the prior year. The Development Impact Fees Fund accounts for the receipts from development impact fee revenue used to defray all or a portion of the cost of public facilities due to development. The fund balance was $82,350,997, an increase of$12,715,948 or 8.1%from the prior fiscal year. Total revenues of$14,960,487 increased by$2,838,816,and total expenditures of$2,244,539 decreased by$4,755,010 from the last fiscal year. Although revenues exceeded expenditures in the current fiscal year, it is normal for the City to accumulate resources to complete identified capital projects over a period of time. The Lighting Districts Fund accounts for the costs of providing street lighting throughout the City. The fund balance was a deficit of $4,219,819 due to interfund advances, as previously mentioned, which is an increase of$56,488 from the prior fiscal year. Total revenues of$2,053,990 consisted primarily of special assessments levied against the benefiting property owners. Total expenditures of $2,142,664 were predominately electric utilities. During the fiscal year, certain street lighting districts' repaid the outstanding interfund advances as the cost savings due to the streetlight acquisition and energy efficient retrofits created a financial surplus that allowed for it. However, other street lighting districts have not realized the same level of savings and still receive some operational support from the General Fund and were put into abeyance until the street lighting districts are financially capable of resuming payments. Transfers from the General Fund were$145,162, a decrease of$191,067 or 56.8%, partially supporting certain street lighting districts' operations. 17 The Housing Successor Agency Fund accounts for the assets of the former Redevelopment Agency's Low and Moderate Income Housing Fund. The fund's revenue source is primarily the interest received from the notes and loans receivable, as there is no dedicated funding source after the elimination of redevelopment. The fund balance was $139,673,896, an increase of $475,226 or 0.3% from the prior fiscal year. Total revenues of$858,197 were primarily from interest on residual receipt loans from repayment received during the year. Revenues were offset by total expenditures of $382,971 for administration. Notes and loans receivable increased by$5,777,357 or 3.4%from the previous year due to accrued interest on outstanding loans. A loan of$3,505,193 was made to Day Creek Senior Housing Partners 2, LP, for the development of a 140-unit senior rental housing project. More information about the notes and loans receivables of the Housing Successor Agency Fund can be found in Note 4 of the notes to the financial statements. The Fire District Fund accounts for the revenues received and disbursements made by the Rancho Cucamonga Fire Protection District while providing emergency and non-emergency services to the community. The fund balance was $93,641,173, which increased by $5,506,969 or 6.2% from the prior fiscal year. Total revenues were$54,556,118, predominantly generated by property taxes which increased during the current fiscal year because of residual receipts and pass-through payments from the former redevelopment agency, as mentioned earlier. Total expenditures of$48,958,544 were incurred to provide fire protection and suppression services, including $31,538,078 in personnel costs, which were the Fire District's most significant expenditure. Additionally, the total expenditures included $2,679,346 of capital outlay expenditures for the Town Center Fire Station #178, which will provide fire suppression and preventive services in an area of the City planned for high-density residential and large-scale office building developments. Fire Station#178 is expected to be completed in the Fiscal Year 2022/23. The Federal Grants Fund accounts for nonrecurring Federal grant funds and the related allowable expenditures. The fund balance was $2,465 at the end of the current fiscal year, representing receivables at the end of the year. Total revenues were$27,540,271, predominately the$26,835,530 of Federal grant funding related to the American Rescue Plan Act. Total expenditures and transfers out to other funds are $27,537,806 at the end of the current year, of which transfers out to other funds are $27,499,103. These transfers reimburse allowable expenditures transacted in other funds. More information about interfund transfers can be found in Note 7 of the notes to financial statements. Proprietary Funds. The City's proprietary funds provide the same information as in the business-type activities column of the government-wide financial statements. They consist of four enterprise funds and two internal services funds. The Municipal Utility and Fiber Optic Network enterprise funds are considered major funds. The following table summarizes the operating results of the City's four enterprise funds: Business-type Activities Change in Net Position For the Fiscal Year Eneded June 30.2022 and 2021 In Thousands Municipal Utility Fiber Optic Network Sports Complex 2022 2021 2022 2021 2022 2021 Operating revenues $ 14,551 $ 12.664 $ 327 $ 99 $ 247 $ 240 Operating expenses 13.504 10.747 631 596 1.703 2.284 Operating income(loss) 1.047 1.917 (304) (497) (1,456) (2,044) Net nonoperating revenuesi(expenses) (765) (12) (536) (436) 274 14 Capital contributions 1.086 489 1.735 954 - - Transfers in - - 937 935 1,581 1.197 Transfers out (1,457) (1,322) - - - - Change in net position $ (109) $ 1.072 $ 1.832 $ 956 $ 399 $ (833) 18 Municipal Utility The Municipal Utility Fund accounts for the costs of labor and materials used in the operation, maintenance, construction, and consumption of electric services to residential, commercial, and industrial customers within areas of the City. The operating revenues totaled $14,551,353, an increase of$1,887,838 or 14.9% from the prior fiscal year due to increased receipts from sales and service charges with commercial and industrial customers rebounding from the pandemic. The total operating expenditures were $13,503,837, which increased by$2,756,620 or 25.6%from the prior fiscal year. The increase in operating costs is due to the price per unit of wholesale power purchases increasing by approximately$1.3 million year over year and real-time energy supply during longer peak hours during heat waves increasing by approximately $1.5 million. Municipal Utility nonoperating revenues and expenses decreased by $773,473 due primarily to the temporary adjustment to bring investments down to fair value at the end of the fiscal year, as previously mentioned. Capital contributions increased by $597,584 due to donated infrastructure from developers in the prior year. Capital contributions are nonrecurring transactions. Fiber Optic Network The Fiber Optic Network Fund accounts for receipts from user charges and leases for conduit and fiber access,and costs associated with the City's existing utility, information technology,and traffic fiber conduits. The operating revenues totaled $326,985, an increase of $228,360 or 231.5% from the prior fiscal year. Operating revenues include lease revenues from cellular towers and fiber optic communications agreements with telecom companies and a local internet provider. Operating expenses totaled$630,599 for the Fiber Optic Network, an increase of$34,653 or 5.8%from the prior fiscal year. This increase in operating expenses is attributed to the increased depreciation expense from expanding the fiber optic infrastructure backbone and last-mile extensions over the last several years. Increasing the fiber optic network improves the customer base for fiber optic subscription revenues. Nonoperating revenues and expenses decreased by $100,129 due primarily to the temporary adjustment to bring investments down to fair value at the end of the fiscal year, as previously mentioned. Additionally, a gain on the defeasance of$178,802 for the 2019 Lease Revenue Bonds was recorded. The defeasance was made possible by an interfund advance from the General Fund to the Fiber Optic Network. The defeasance of the 2019 Lease Revenue Bonds resulted in a savings of $1.9 million in future interest payments for the Fiber Optic Fund. Additionally, eliminating the recurring debt service repayments gives the fiber optic network more free cash flow to continue expanding its network and customer base, as the interfund advance allows for more favorable repayment terms. During the fiscal year, the General Fund transferred $937,291 for debt service payments. Additionally, the Fiber Optic Network reported $1,735,481 in contributed capital for fiber optic infrastructure from developers in newer communities, providing high-speed internet access to new communities. The infrastructure assets were placed into service in the current fiscal year. Other Proprietary Funds The Sports Complex enterprise fund is nonmajor for financial reporting purposes; however, it is reported individually on the statement of net position and statement of revenues, expenses and changes in fund net position of the proprietary funds in the basic financial statements. The Equipment and Vehicle Replacement and the Computer Equipment/Technology Replacement internal service funds are reported as a combined total on the statement of net position and statement of revenues, expenses and changes in fund net position of the proprietary funds. More detailed information on these funds can be found in the combining statement of net position and statement of revenues, expenses and changes in fund net position for the internal service funds. 19 General Fund Budgetary Highlights During the fiscal year, with the City's staffs recommendation, the City Council may revise the City's budget as needed. Adjustments were made periodically as additional appropriations were necessary to cover the cost of projects that either required change orders for additional work or the estimated cost at the beginning of the project changed due to external factors. Adjustments were also made through increased or decreased budgets to maintain the current level of services. All amendments that the City Council approves either increase or decrease appropriations. On June 30, 2022, the General Fund's actual revenues and other financing sources were higher than the final adjusted budget, while actual expenditures with encumbrances and other financing uses were lower than the final adjusted budget. The following table summarizes the operating results on a budgetary basis for the City's General Fund: Budgetary Operating Results- General Fund Fiscal Year Ended June 30, 2022 Variance with Final Budget Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues and Other Financing Taxes $ 75,134,610 $ 84,570,040 $ 87,561,737 $ 2,991,697 Licenses and permits 4,597,540 4,792,260 6,207,356 1,415,096 Intergovernmental 848,050 739,170 687,958 (51,212) Charges for services 8,053,070 5,713,310 5,663,958 (49,352) Use of money and property 2,499,920 1,437,410 (4,575,630) (6,013,040) Fines and forfeitures 1,039,850 1,279,580 1,287,454 7,874 Contributions 91,000 84,690 59,070 (25,620) Miscellaneous 3,932,020 7,498,550 14,971,128 7,472,578 Transfers in 1,632.400 29,619,170 29,617,859 (1,311) Leases - - 226,622 226,622 Sale of capital assets 25,990 3,265,410 3,318,081 52,671 Total Revenues and Other Financing Sources $ 97,854,450 $ 138,999,590 $ 145,025,593 $ 6,026,003 Expenditures with General government $ 16,020,810 $ 17,473,170 $ 16,359,212 $ (1,113,958) Public safety- police 47,540,230 47,540,940 45,017,346 (2,523,594) Public safety,-animal center 3,179,380 2,958,810 2,772,844 (185,966) Community development 5,885,100 7,244,320 6,378,983 (865,337) Community services 8,641,020 5,291,090 4,742,725 (548,365) Engineering and public works 13,366,690 13,563,640 12,684,837 (878,803) Capital outlay 4,748,650 6,261,640 5,405,482 (856,158) Interest and fiscal charges 7,210 7,210 7,208 (2) Transfers out 4,266.580 9,176,880 8,776,007 (400,873) Total Expenditures with Encumbrances and Other Financing Uses $ 103,655,670 $ 109,517,700 $ 102,144,644 $ (7,373,056) 20 Significant revenue variances at the end of the fiscal year were as follows: • The final budget for revenues and other financing sources was$41,145,140 more than the original budget. • The final budget for taxes increased by $9,435,430 or 12.6% for updated budgets for sales and transient occupancy taxes of $6,200,140 and $1,152,850, respectively, for a total budgetary increase of 7,352,990. The increase in budgets resulted from an improved economic climate coming out of the pandemic, ramping up at the end of the last fiscal year and updated during the midyear budget review for the current fiscal year. Taxes were $2,991,697 better than the final budgeted amount of $84,570,040. This increase is primarily related to sales taxes which is $2,600,068 from a sales tax base rebounding from the economic impacts of the pandemic, as previously mentioned. • The final budget for charges for services decreased by$2,339,760 or 29.1% as City management refined the budgets for changes in demand for recreational and other programs offered by community services. Charges for services were approximate to the final budget and were$49,352 below the final budget of $5,713,310. The Community Services Department has resumed programs and services coming out of the pandemic and is working to increase the variety and offerings to address service gaps within the community. However, there is a noticeable change in demand from clients previously served, most likely due to finding available services during the pandemic when the City was required to suspend its programs and services. • Use of money and property was$6,013,040 less than the final budgeted amount of$1,437,410 due to the temporary adjustment to bring investments to fair value at the end of the fiscal year. These changes are not budgeted because they do not provide useable resources for the City. • The final budget for miscellaneous revenues increased by$3,566,530 or 90.7%due to$3,000,000 budgeted for community benefit fees sourced from development agreements to offset warehouse, industrial, and commercial development impacts. Miscellaneous revenues were $7,472,578 more than the final budget as the result of$2,150,000 more in community benefits fees received from developers near the end of the fiscal year and $5,251,397 in unclaimed property absorbed by the General Fund. • The final budget for transfers increased by $27,986,770 due to the $26,835,530 of Federal grant funding related to the American Rescue Plan Act budgeted and transferred, as previously discussed. • The final budget for sale of capital assets increased by $3,239,420 due to the sale of vacant land during the year, increasing the budget by$3,185,910. Significant expenditure variances at the end of the fiscal year are as follows: • The final budget for expenditures with encumbrances and other financing uses was $5,862,030 more than the original budget. • During the year, changes in personnel services and benefits increased the final budgets for general government by$539,710 and community development by$43,640. However, it decreased the final budgets for public safety — animal center by $226,740, community services by $1,877,790, and engineering and public works by$711,320. • The final budget for general government increased by$1,452,360,which in addition to the changes in personal services and benefits, was due to increases in contract services for administrative and support services of $631,530. General government expenditures were $1,113,958 less than the final budget, primarily due to the unexpended contracts and encumbrances at the end of the year totaling $536,358, of which $400,620 were encumbered. 21 • Public safety- police was $2,523,594 better than the final budgeted amount of$47,540,940 due to the actual expenditures related to the public safety contract with the San Bernardino County Sheriff's Department being less than anticipated due to staffing credits resulting from vacancies and injuries. • The final budget for community development increased by $1,359,220 primarily due to increased contract services for consulting and support services for planning, building and safety, community improvement, and economic development of$1,351,960. Community development was$865,337 better than the final budget due to unexpended contractual services and encumbrances totaling $714,715, of which $267,655 were encumbered. • The final budget for community services decreased by$3,349,930,which in addition to the changes in personal services and benefits, was due to a reduction in operations and maintenance and contract services totaling $1,433,750. As previously mentioned, community services have resumed programs and services but are adjusting to demands. • The final budget for transfers out increased by $4,910,300 due to the increased transfer of $5,008,320 to the Computer Equipment/Technology Replacement internal service fund for spending on the procurement and implementation of a new financial enterprise resource platform for the City. Capital Assets and Debt Administration Capital Assets The City's investment in capital assets for its governmental and business-type activities amounted to $843,311,625, net of accumulated depreciation and amortization. The table below presents summary information on the City's capital assets. Capital Assets For the Year Ended June 30,2022 and 2021 (Net of Depreciation, In Thousands) Governmental Business-Type Activities Activities Total 2022 2021 2022 2021 2022 2021 Land $ 99,349 $ 100,707 $ 5,451 $ 5,451 $ 104,800 $ 106,158 Right-of-way 237,230 237,230 - - 237,230 237,230 Construction in progress 32,901 17.630 1,242 3,407 34,143 21,037 Right-to-use land 191 - - - 191 - Buildings improvements 145,870 153,732 4.731 5,162 150,601 158,894 Improvements other than buildings 21,816 23,248 1,975 2,104 23,791 25,352 Equipment and vehicles 8,973 11,358 118 136 9,091 11,494 Furniture and fixtures 45 125 - - 45 125 Infrastructure 254,175 258,087 29.235 25,626 283,410 283,713 Intangible 9 213 - - 9 213 Total $ 800,559 $ 802.330 $ 42,752 $ 41,886 $ 843,311 $ 844,216 Major capital asset activities during the year are as follows: Governmental Activities • Land reported a net decrease of$1,358,401 for the sale and purchase of vacant land during the current fiscal year. 22 • Construction in progress increased by $15,271,855, the net of $20,404,658 in increases and $5,132,803 of capital assets placed into service or disposed of during the current fiscal. Significant projects during the fiscal year were the construction of the Etiwanda Avenue Grade Separation and Town Center Fire Station #178, totaling $10,228,272, in addition to construction in progress. The Etiwanda Avenue Grade Separation,which will provide an overcrossing for the SCRRA/BSNF track and improve traffic circulation and vehicle and rail safety in the area, will wrap up design in FY 2022/23 and construction is expected to start in the Fiscal Year 2023/24. The Town Center Fire Station #178 will be completed in the Fiscal Year 2022/23. • Total capitalized infrastructure assets amounted to$254,175,192 net of accumulated depreciation. During the current fiscal year, the City completed the first phase of the Advance Traffic Management System and traffic signal installations at 6th Street and Hellman Avenue, which comprised $2,856,579 of capital assets transferred from construction in progress. • The implementation of GASB Statement No. 87, Leases added right-to-use land. More information on the lease can be found in Note 5 in the notes to financial statements. • The City reported $21,714,323 in depreciation expense for the current fiscal year. Business-type Activities: • Construction in progress decreased by $2,165,651, a net of $734,614 in additions primarily from progress on the fiber optic network and various municipal utility line extensions, and $2,900,265 being placed into service. The capital assets being placed into service include completed sections of the fiber optic network totaling$2,091,765 and various municipal utility line extensions amounting to$808,500. • Donated infrastructure from new development to the City is reported in the Municipal Utility as $411,348 and the Fiber Optic Network as $1,735,481. • Depreciation expense reported for the Municipal Utility is $1,341,460, Fiber Optic Network is $237,560, and Sports Complex is $560,032. Additional information on the City's capital assets can be found in Note 6 of the notes to financial statements. Furthermore, significant commitments that include construction contracts are identified in Note 16 of the notes to financial statements. Debt Administration As of June 30, 2022, the City had $16,406,823 in debt outstanding, not including net pension liabilities. A summary of outstanding long-term debt with comparative amounts for the prior fiscal year is presented below: Long-Term Debt For the Year Ended June 30,2022 and 2021 (In Thousands) Governmental Business-Type Activities Activities Total 2022 2021 2022 2021 2022 2021 Capital Leases(Note 8) $ 696 $ 996 $ $ - $ 696 $ 996 Lease Revenue Bonds(Note 8) - - 12,687 - 12,687 Advances from Successor Agency(Note 9) 3,954 3,954 - 3,954 3,954 Compensated Absences(Note 10) 8,629 8,618 8,629 8,618 Claims and Judgments Payable(Note 15) 3,128 2,559 3,128 2,559 Total $ 16,407 $ 16,127 $ $ 12,687 $ 16,407 $ 28,814 23 Additional information on the City's long-term debt can be found in various notes to the financial statements. A reference to the appropriate note is indicated in the table above. Economic Factors and Next Year's Budgets The City's Fiscal Year 2022/23 Adopted Budget for all funds is $352,128,240. Of this amount, $167,817,210, or 47.7% is appropriated for the City's operating budgets. The funds which make up the City's operating budget are the General Fund operating fund of $107,532,940, the Fire District operating funds of$53,330,660, and the Library Fund of$6,953,610. The total budget increased by$84,153,790 or 31.4%,and the operating budget increased by$19,407,070 or 13.1%from the Fiscal Year 2021/22 Adopted Budget. As a note, the presentation of the General Fund in the basic financial statements is the combination of the General Fund operating fund and other general funds. However,these other general funds are not included in the City's operating budget for budgetary purposes. The General Fund operating fund budgeted receipts of $107,532,940, projecting an increase of $12,372,530 from the Fiscal Year 2021/22 adopted budget, as follows: FY 2021/22 FY 2021122 FY 2022/23 Increase(Decrease) Budget Actuals Budget Amount Percentage Revenues and Other Financing Sources: Taxes $ 75,134,610 $ 87,561,737 $ 86,462,450 $ (1,099,287} -1.3% Licenses and pennits 4.565,920 6,175,730 4.993,590 (1,182.140) -19.1% Intergovernmental 214,580 268,773 276,940 8,167 3.0% Charges for services 7,365,650 4,883.992 7.142.230 21255,238 46.2% Use of money and property 1,553,990 (1,906,261) 1,578,640 3,484.901 -182.8% Fines and forfeitures 1.004,750 1,254,745 1.304,280 49,535 3.9% Other 3,598,000 9,213,150 3,958,680 (5,254,470) -57.0% Transfers in 1,722,910 29,708,369 1,816,130 (27,892,239) -93.9% Total Revenues and Other Financing Sources $ 95.160,410 $137,160,235 $107.532,940 $(29.627.295) -21.6% The key revenue sources for the General Fund include sales tax, vehicle license fees (VLF and property tax in lieu of VLF), franchise fees, property tax, development fees, business licenses, and transient occupancy tax. • The City works closely with its sales tax consultant in projecting sales tax revenue. Based on their analysis of the trend in year-to-date tax receipts, macroeconomic conditions, and an examination of local business data,the consultant anticipates the City will receive sales tax revenue will increase $6,007,700 or an increase of 18.79% over the FY 2021/22 budget. These revenue estimates will be proactively measured and, as is typically done, will be adjusted after the close of the 2022 calendar year, as the final quarter is the largest receipting period for the City. • Revenues for vehicle license fees (VLF and Property Tax in lieu of VLF) are projected to be $23,951,320,which is a$1,902,590 or 8.63% increase from the FY 2021/22 budget. As previously mentioned, growth in the Property Tax in lieu of VLF changes based on the growth in assessed property value in the City. • Franchise fee revenues are projected based on estimated population increases, anticipated rate changes, and known changes in activities communicated by the respective service providers. Based on these factors, franchise fees are projected to increase by $498,520 or 6.58% from FY 2021/22. 24 • The City works with its property tax consultant to project property tax revenue, an estimate made with four factors in mind: property turnover rate, pricing, and appeals exposure, new construction activity, and Proposition 13's annual inflation adjustment. After considering these factors,the City's consultant has projects that property tax revenue will increase by 5.52% citywide. This equates to property tax revenues for the City General Fund (including post-RDA property tax revenue) increasing by$1,250,510 or 12.18%from FY 2021/22. • Development fees are collected through the Community Development Departments and are projected based on known or anticipated development projects within the City. Depending on what phase a project is in for a given fiscal year, the corresponding Building and Safety, Engineering, or Planning Fees are adjusted accordingly. Based on input received from the Community Development departments, development fees are projected to increase by $160,370 (excluding special services fees) or 3.22%from FY 2021/22. • The City taxes businesses to conduct business within the City. The amount of the tax is determined based on either gross receipts or gross payroll for the business. Business Licenses revenues are projected to increase by $362,640 or 13.44% from FY 2021/22 due to the improving business climate combined with the addition of a shared position that will focus on increasing the number of business inspections completed during the fiscal year. • Transient occupancy tax is projected to increase by $1,729,180 or 50.56% from FY 2021/22, partially due to projected revenues from two new hotels in the City — one for the entire year and one for a partial year as it is currently under construction. Other matters that are affecting or could affect the City's future operations are as follows: According to the California State Legislative Analyst Office's (LAO) The 2022-23 Budget: California's Fiscal Outlook Overview, the consensus among professional economists is that despite the ongoing global pandemic and its disparate health and economic impacts on Californians, revenues are growing at historical rates and the state will have a $31 billion surplus (resources in excess of current law commitments). Yet, although revenue collections have grown rapidly in recent months, the underlying growth does not appear to be entirely sustainable. To counterbalance the meteoric growth, economists generally advise additional, discretionary deposits into reserves. 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 of Rancho Cucamonga's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department at the City of Rancho Cucamonga, 10500 Civic Center Drive, Rancho Cucamonga, California 91730. 25 THIS PAGE INTENTIONALLY LEFT BLANK 26 CITY OF RANCHO CUCAMONGA STATEMENT OF NET POSITION JUNE 30,2022 Primary Government Governmental Business-Type Activities Activities Total Assets: Cash and investments $ 439,757,206 $ 32,294,698 $ 472,051,904 Receivables: Accounts,net of allowances 12,418,298 2,435,961 14,854,259 Taxes 11,380,222 - 11,380,222 Notes and loans 174,151,069 - 174,151,069 Accrued interest 1,173,297 83,070 1,256,367 Other loans 1,337,228 - 1,337,228 Grants 1,739,342 - 1,739,342 Leases 4,766,818 3,468,074 8,234,892 Internal balances 13,598,855 (13,598,855) - Prepaid costs 1,432,838 382,093 1,814,931 Deposits 72,000 - 72,000 Net OPEB asset 9,162,558 - 9,162,558 Net pension asset 9,240,587 416,540 9,657,127 Restricted assets: Cash with fiscal agent 412,846 - 412,846 Pension rate stabilization program 13,120,594 - 13,120,594 Capital assets,not being depreciated/amortized 369,480,510 6,692,449 376,172,959 Capital assets,net of depreciation/amortization 431,078,910 36,059,756 467,138,666 Total Assets 1,494,323,178 68,233,786 1,562,556,964 Deferred Outflows of Resources: Deferred OPEB related items 15,729 - 15,729 Deferred pension related items 23,937,277 411,088 24,348,365 Total Deferred Outflows of Resources 23,953,006 411,088 24,364,094 Liabilities: Accounts payable 11,261,587 1,225,821 12,487,408 Accrued liabilities 2,212,224 45,033 2,257,257 Accrued interest 8,556 - 8,556 Unearned revenue 2,675,991 - 2,675,991 Deposits payable 5,786,215 897,603 6,683,818 Due to other governments 530,519 - 530,519 Noncurrent liabilities: Due within one year Long-term debt 544,132 544,132 Compensated absences 6,572,000 6,572,000 Claims and judgments 767,975 767,975 Due in more than one year Long-term debt 151,701 151,701 Advances from Successor Agency 3,953,624 3,953,624 Compensated absences 2,056,970 2,056,970 Claims and judgments 2,360,421 - 2,360,421 Net pension liability 46,126,250 1,261,083 47,387,333 Total Liabilities 85,008,165 3,429,540 88,437,705 Deferred Inflows of Resources: Deferred OPEB related items 6,038,904 - 6,038,904 Deferred pension related items 42,723,543 1,359,055 44,082,598 Deferred lease inflows 4,667,214 3,443,750 8,110,964 Total Deferred Inflows of Resources 53,429,661 4,802,805 58,232,466 Net Position: Net investment in capital assets 799,863,587 42,752,205 842,615,792 Restricted for: Community development projects 201,636,220 - 201,636,220 Public safety 2,837,136 2,837,136 Parks and recreation 21,416,129 21,416,129 Fire protection 85,558,800 85,558,800 Engineering and public works 96,207,702 96,207,702 Community services 14,149,313 14,149,313 Capital projects 42,894,755 - 42,894,755 Public benefit-Municipal Utility - 403,327 403,327 Unrestricted 115,274,716 17,256,997 132,531,713 Total Net Position $ 1,379,838,358 $ 60,412,529 $ 1,440,250,887 See Notes to Financial Statements. 27 CITY OF RANCHO CUCAMONGA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2022 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government $ 18,945,300 $ 10,176,185 $ - $ 373,512 Public safety-police 45,826,735 998,096 27,346,792 186,794 Public safety-fire protection 38,905,872 140,675 26,995 - Public safety-animal center 2,362,765 146,314 - - Community development 17,757,830 11,627,478 2,304,017 109,335 Community services 13,172,949 609,768 2,459,033 - Engineering and public works 29,237,399 3,874,898 7,709,660 30,117,717 Interest on long-term debt 76,038 - - - Total Governmental Activities 166,284,888 27,573,414 39,846,497 30,787,358 Business-Type Activities: Municipal Utility 13,503,837 14,551,353 70,036 1,086,273 Fiber Optic Network 801,230 326,985 - 1,735,481 Sports Complex 1,719,849 246,722 63,419 - Total Business-Type Activities 16,024,916 15,125,060 133,455 2,821,754 Total Primary Government $ 182,309,804 $ 42,698,474 $ 39,9799952 $ 33,609,112 General Revenues: Taxes: Property taxes,levied for general purpose Admissions tax Transient occupancy taxes Sales taxes Franchise fees Motor vehicle in lieu-unrestricted Use of money and property Other Gain on sale of capital asset Transfers Total General Revenues and Transfers Change in Net Position Net Position at Beginning of Year Net Position at End of Year See Notes to Financial Statements. 28 Net(Expenses)Revenues and Changes in Net Position Primary Government Governmental Business-Type Activities Activities Total $ (8,395,603) $ $ (8,395,603) (17,295,053) (17,295,053) (38,738,202) (38,738,202) (2,216,451) (2,216,451) (3,717,000) (3,717,000) (10,104,148) (10,104,148) 12,464,876 12,464,876 (76,038) (76,038) (68,077,619) - (68,077,619) 2,203,825 2,203,825 1,261,236 1,261,236 (1,409,708) (1,409,708) 2,055,353 2,055,353 (68,077,619) 2,055,353 (66,022,266) 96,971,793 - 96,971,793 2,042 152,009 154,051 4,423,148 - 4,423,148 40,767,359 40,767,359 9,991,283 9,991,283 202,321 202,321 (12,450,392) (1,151,503) (13,601,895) 18,419,397 5,862 18,425,259 1,061,719 - 1,061,719 (1,061,217) 1,061,217 - 158,327,453 67,585 158,395,038 90,249,834 2,122,938 92,372,772 1,289,588,524 58,289,591 1,347,878,115 $ 1,379,838,358 $ 60,412,529 $ 1,440,250,887 See Notes to Financial Statements. 29 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30,2022 Special Revenue Funds Housing Development Lighting Successor General Impact Fees Districts Agency Assets: Cash and investments $ 136,597,352 $ 82,450,621 $ 4,263,080 $ 2,592,593 Receivables: Accounts, net of allowances 1,815,027 358,693 186,474 - Taxes 8,806,076 - 18,058 - Notes - - - 174,151,069 Accrued interest 364,157 224,707 10,321 6,930 Other loans - - - - Grants 2,280 - - Leases 387,545 - Prepaid costs 860,220 1,498 Deposits 72,000 - Due from other funds 8,122,775 -Advances to other funds 22,379,599 - Restricted assets: Cash and investments with fiscal agents - - Pension rate stabilization program 3,671,450 - - - Total Assets $ 183,078,481 $ 83,034,021 $ 4,477,933 $ 176,752,090 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 2,206,079 $ 666,961 $ 116,270 $ Accrued liabilities 1,192,752 16,063 1,325 Unearned revenues 393,648 - 9,503 Deposits payable 5,786,200 - - Due to other governments - - - Due to other funds 105,873 Advances from other funds - - 8,285,030 Total Liabilities 9,578,679 683,024 8,518,001 - Deferred Inflows of Resources: Unavailable revenues 666 - 179,751 37,078,194 Deferred lease inflows 378,900 - - Total Deferred Inflows of Resources 379,566 - 179,751 37,078,194 Fund Balances: Nonspendable 23,311,819 - - 1,498 Restricted 16,162,437 82,350,997 139,672,398 Committed 101,962,810 - - Assigned 31,683,170 Unassigned - - (4,219,819) - Total Fund Balances 173,120,236 82,350,997 (4,219,819) 139,673,896 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 183,078,481 $ 83,034,021 $ 4,477,933 $ 176,7529090 See Notes to Financial Statements. 30 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30,2022 Special Revenue Fund Other Total Federal Governmental Governmental Fire District Grants Fund Funds Funds Assets: Cash and investments $ 84,081,179 $ - $ 119,607,371 $ 429,592,196 Receivables: Accounts, net of allowances 1,666,756 2,464 8,359,864 12,389,278 Taxes 487,292 - 2,068,796 11,380,222 Notes - - 174,151,069 Accrued interest 209,912 342,388 1,158,415 Other loans - - 1,337,228 1,337,228 Grants - 38,704 1,698,358 1,739,342 Leases 871,823 - 3,507,450 4,766,818 Prepaid costs 329,264 15,539 1,206,521 Deposits - - 72,000 Due from other funds 8,122,775 Advances to other funds - 22,379,599 Restricted assets: Cash and investments with fiscal agents - 412,846 412,846 Pension rate stabilization program 9,449,144 - - 13,120,594 Total Assets $ 97,095,370 $ 41,168 $ 137,349,840 $ 681,828,903 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 1,286,514 $ 17,484 $ 6,763,250 $ 11,056,558 Accrued liabilities 817,288 - 184,796 2,212,224 Unearned revenues - 2,272,840 2,675,991 Deposits payable 15 5,786,215 Due to other governments - 530,519 530,519 Due to other funds - 21,219 7,995,683 8,122,775 Advances from other funds 495,714 - - 8,780,744 Total Liabilities 2,599,516 38,703 17,747,103 39,165,026 Deferred Inflows of Resources: Unavailable revenues - - 618,833 37,877,444 Deferred lease inflows 854,681 3,433,633 4,667,214 Total Deferred Inflows of Resources 854,681 4,052,466 42,544,658 Fund Balances: Nonspendable 329,264 - 15,539 23,658,120 Restricted 27,488,427 2,465 115,799,622 381,476,346 Committed 46,159,904 - - 148,122,714 Assigned 19,663,578 51,346,748 Unassigned - - (264,890) (4,484,709) Total Fund Balances 93,641,173 2,465 115,550,271 600,119,219 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 97,0959370 $ 41,168 $ 137,349,840 $ 681,8289903 See Notes to Financial Statements. 31 THIS PAGE INTENTIONALLY LEFT BLANK 32 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30,2022 Fund balances of governmental funds $ 600,119,219 Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 796,385,486 Deferred outflows related to pension related items are not included in the governmental fund activity: Contributions made after the measurement date $ 16,456,584 Adjustment due to differences in proportions 779,027 Changes in assumptions 447,693 Differences between expected and actual experiences 4,420,714 Differences between actual contributions and the proportionate share of contributions 1,833,259 23,937,277 Deferred inflows related to pension related items are not included in the governmental fund activity: Changes in assumptions (598,885) Net difference between projected and actual earning on plan investments (13,226,865) Differences between expected and actual experiences (2,861,955) Adjustment due to differences in proportions (3,955) Change in Proportions (1,471,671) Differences between actual contributions and the proportionate share of contributions (24,560,212) (42,723,543) Deferred outflows related to OPEB related items are not included in the governmental fund activity: Contributions made after the measurement date 15,729 Deferred inflows related to OPEB related items are not included in the governmental fund activity: Changes in assumptions (1,099,715) Differences between expected and actual experiences (2,529,595) Net difference between projected and actual earning on plan investments (2,409,594) (6,038,904) Advances from Successor Agency of the Former RDA,compensated absences and claims and judgments liability are not included in the governmental fund activity: Long-term debt (188,493) Advances from Successor Agency of the Former RDA (3,953,624) Claims and judgments (3,128,396) Compensated absences (8,628,970) (15,899,483) Governmental funds report all pension contributions as expenditures,however,in the statement of net position,the excess of the total pension liability over the plan fiduciary net position is reported as a net pension liability. (46,126,250) Accrued interest payable for the current postion of lease liabillity has not been reported in the governmental funds (1,491) Net pension assets are not available to pay for current-period expenditures and therefore are not reported in the govenmental funds. 9,240,587 Net OPEB assets are not available to pay for current-period expenditures and therefore are not reported in the govenmental funds. 9,162,558 Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities.These are included in the intergovernmental revenues in the governmental fund activity. 37,877,444 Internal service funds are used by management to charge the costs of certain activities,such as equipment management,to individual funds.The assets and liabilities of the internal service funds are added to the statement of net position. 13,889,729 Net Position of Governmental Activities $ 1,379,838,358 See Notes to Financial Statements. 33 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30.2022 Special Revenue Funds Housing Development Lighting Successor General Impact Fees Districts Agency Revenues: Taxes $ 87,561,737 $ $ 2,142,744 $ Licenses and permits 6,207,356 - Intergovernmental 687,958 Charges for services 5,663,958 Use of money and property (4,575,630) (3,058,974) (151,567) 737,005 Fines and forfeitures 1,287,454 - Contributions 59,070 - Developer participation - 18,019,461 - - Miscellaneous 14,971,128 - 62,813 121,192 Total Revenues 111,863,031 14,960,487 2,053,990 858,197 Expenditures: Current: General government 15,923,699 - 2,138,962 - Public safety-police 44,999,347 200 - Public safety-fire protection - - Public safety-animal center 2,772,844 60 - Community development 6,089,377 43,443 382,971 Community services 4,589,200 4,400 - Engineering and public works 12,381,485 734,871 Capital outlay 3,122,875 1,461,565 - Debt service: Interest and fiscal charges 7,208 - 3,702 - Total Expenditures 89,886,035 2,244,539 2,142,664 382,971 Excess(Deficiency)of Revenues Over(Under)Expenditures 21,976,996 12,715,948 (88,674) 475,226 Other Financing Sources(Uses): Transfers in 29,617,859 - 145,162 - Transfers out (8,776,007) - Leases 226,622 Proceeds from sale of capital assets 3,318,081 - Total Other Financing Sources (Uses) 24,386,555 - 145,162 - Net Change in Fund Balances 46,363,551 12,715,948 56,488 475,226 Fund Balances: Beginning of year 126,756,685 69,635,049 (4,276,307) 139,198,670 End of Year $ 173,120,236 $ 82,350,997 $ (4,219,819) $ 139,673,896 See Notes to Financial Statements. 34 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30.2022 Special Revenue Funds Other Total Federal Governmental Governmental Fire District Grants Fund Funds Funds Revenues: Taxes $ 55,490,495 $ $ 20,575,458 $ 165,770,434 Licenses and permits 15,455 129,772 6,352,583 Intergovernmental 12,405 27,540,271 23,163,125 51,403,759 Charges for services 819 - 126,455 5,791,232 Use of money and property (3,275,090) - (3,981,345) (14,305,601) Fines and forfeitures 119,672 - - 1,407,126 Contributions - - 1,641,149 1,700,219 Developer participation - - 24,832 18,044,293 Miscellaneous 2,192,362 - 1,150,677 18,498,172 Total Revenues 54,556,118 27,540,271 42,830,123 254,662,217 Expenditures: Current: General government - 38,703 1,676,979 19,778,343 Public safety-police - - 213,552 45,213,099 Public safety-fire protection 45,098,082 28,018 45,126,100 Public safety-animal center - - 2,772,904 Community development 13,094,690 19,610,481 Community services 4,007,887 8,601,487 Engineering and public works - 6,206,405 19,322,761 Capital outlay 3,829,094 15,715,635 24,129,169 Debt service: Interest and fiscal charges 31,368 - - 42,278 Total Expenditures 48,958,544 38,703 40,943,166 184,596,622 Excess(Deficiency)of Revenues Over(Under)Expenditures 5,597,574 27,501,568 1,886,957 70,065,595 Other Financing Sources(Uses): Transfers in 14,591 - 465,454 30,243,066 Transfers out (105,466) (27,499,103) (759,357) (37,139,933) Leases - 226,622 Proceeds from sale of capital assets 270 - 3,318,351 Total Other Financing Sources (Uses) (90,605) (27,499,103) (293,903) (3,351,894) Net Change in Fund Balances 5,506,969 2,465 1,593,054 66,713,701 Fund Balances: Beginning of year 88,134,204 - 113,957,217 533,405,518 End of Year $ 93,641,173 $ 2,465 $ 115,550,271 $ 600,119,219 See Notes to Financial Statements. 35 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2022 Net change in fund balances-total governmental funds $ 66,713,701 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 costs of those assets are allocated over their estimated useful lives as amortization expense. Capital outlay $ 18,658,518 Amortization (20,083,599) Gain on disposal of capital assets 730,434 (694,647) Certain expenses reported in the statement of activities do not require the use of current financial resources and,therefore,are not reported as expenditures in governmental funds. Change in claims and judgments liability (569,412) Change in compensated absences liability (11,193) (580,605) OPEB obligation expenses reported in the statement of activities do not require the use of current financial resources and,therefore,are not reported as expenditures in governmental funds. 1,277,352 Pension obligation expenses are expenditures in the governmental funds, but reduce the Net Pension Liability/(Asset)in the statement of net position. 16,335,268 Revenues reported as unavailable revenue in the governmental funds are recognized in the statement of activities.These are included in the intergovernmental revenues in the governmental fund activity. 2,288,958 Accrued interest on lease liability.This is the net change in accrued interest for the current period. (1,491) Internal service funds are used by management to charge the costs of certain activities,such as equipment management,to individual funds.The assets and liabilities of the internal service funds are added to the statement of net position. 4,911,298 Change in Net Position of Governmental Activities $ 90,249,834 See Notes to Financial Statements. 36 CITY OF RANCHO CUCAMONGA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30,2022 Business-Type Activities-Enterprise Funds Other Enterprise Governmental Major Funds Funds Activities- Municipal Fiber Optic Sports Internal Utility Network Complex Total Service Funds Assets: Current: Cash and investments $ 23,928,685 $ 8,260,015 $ 105,998 $ 32,294,698 $ 10,165,010 Receivables: Accounts 2,311,271 54,731 69,959 2,435,961 29,020 Accrued interest 76,353 307 6,410 83,070 14,882 Leases - 332,876 3,135,198 3,468,074 - Prepaid costs 382,093 - - 382,093 226,317 Total Current Assets 26,698,402 8,647,929 3,317,565 38,663,896 10,435,229 Noncurrent: Net pension asset 184,357 - 232,183 416,540 - Capital assets,not being depreciated/amortized 7,730 1,233,704 5,451,015 6,692,449 63,568 Capital assets-net of accumulated depreciation/amortization 18,358,764 10,994,509 6,706,483 36,059,756 4,110,366 Total Noncurrent Assets 18,550,851 12,228,213 12,389,681 43,168,745 4,173,934 Total Assets 45,249,253 20,876,142 15,707,246 81,832,641 14,609,163 Deferred Outflows of Resources: Deferred pension related items 171,225 - 239,863 411,088 - Total Deferred Outflows of Resources 171,225 - 239,863 411,088 - Liabilities: Current: Accounts payable 1,038,805 95,298 91,718 1,225,821 205,029 Accrued liabilities 18,188 - 26,845 45,033 - Accrued interest - - - 7,065 Deposits payable 897,603 897,603 - Financed purchases - - - - 507,340 Total Current Liabilities 1,954,596 95,298 118,563 2,168,457 719,434 Noncurrent: Advances from other funds - 12,001,791 1,597,064 13,598,855 - Net pension liability 573,535 - 687,548 1,261,083 Total Noncurrent Liabilities 573,535 12,001,791 2,284,612 14,859,938 - Total Liabilities 2,528,131 12,097,089 2,403,175 17,028,395 719,434 Deferred Inflows of Resources: Deferred pension related items 614,941 - 744,114 1,359,055 - Deferred lease inflows - 334,387 3,109,363 3,443,750 Total Deferred Inflows of Resources 614,941 334,387 3,853,477 4,802,805 - Net Position: Net investment in capital assets 18,366,494 12,228,213 12,157,498 42,752,205 3,666,594 Restricted for public benefit-Municipal Utility 403,327 - - 403,327 - Unrestricted 23,507,585 (3,783,547) (2,467,041) 17,256,997 10,223,135 Total Net Position $ 42,277,406 $ 894449666 $ 9,690,457 $ 60,4129529 $ 13,8899729 See Notes to Financial Statements. 37 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30,2022 Business-Type Activities-Enterprise Funds Other Enterprise Governmental Major Funds Funds Activities- Municipal Fiber Optic Sports Internal Utility Network Complex Total Service Funds Operating Revenues: Sales and service charges $ 14,550,686 $ 191,923 $ 39,362 $ 14,781,971 $ Interdepartmental charges - - - - 1,901,590 Rent - 135,062 207,360 342,422 - Miscellaneous 667 - 667 - Total Operating Revenues 14,551,353 326,985 246,722 15,125,060 1,901,590 Operating Expenses: Salaries and benefits 915,300 - 460,353 1,375,653 - Maintenance and operations 10,730,526 393,039 482,674 11,606,239 526,275 Contractual services 516,551 - 200,135 716,686 219,719 Depreciation expense 1,341,460 237,560 560,032 2,139,052 1,630,724 Total Operating Expenses 13,503,837 630,599 1,703,194 15,837,630 2,376,718 Operating Income(Loss) 1,047,516 (303,614) (1,456,472) (712,570) (475,128) Nonoperating Revenues(Expenses): Admissions tax - 152,009 152,009 Grant subsidy 70,036 - 70,036 Interest revenue (855,251) (371,611) 75,359 (1,151,503) (416,955) Interest expense (349,433) (16,655) (366,088) (32,269) Miscellaneous 5,862 63,419 69,281 Gain on bond defeasance 178,802 - 178,802 Total Nonoperating Revenues(Expenses) (785,215) (536,380) 274,132 (1,047,463) (449,224) Income(Loss)Before Contributions and Transfers 262,301 (839,994) (1,182,340) (1,760,033) (924,352) Capital contributions 1,086,273 1,735,481 - 2,821,754 - Transfers in - 937,291 1,581,226 2,518,517 5,835,650 Transfers out (1,457,300) - - (1,457,300) - Changes in Net Position (108,726) 1,832,778 398,886 2,122,938 4,911,298 Net Position: Beginning of Year 42,386,132 6,611,888 9,291,571 58,289,591 8,978,431 End of Fiscal Year $ 42,277,406 $ 8,444,666 $ 9,690,457 $ 60,412,529 $ 13,889,729 See Notes to Financial Statements. 38 CITY OF RANCHO CUCAMONGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2022 Other Enterprise Governmental Funds Activities- Municipal Fiber Optic Sports Internal Utility Network Complex Total Service Funds Cash Flows from Operating Activities: Cash received from customers and users $ 14,278,556 $ 352,829 $ 178,910 $ 14,810,295 $ - Cash received from interfund service provided - - - - 1,901,590 Cash paid to suppliers for goods and services (11,732,567) (459,093) (648,682) (12,840,342) (479,531) Cash paid to employees for services (775,206) - (1,228,121) (2,003,327) - Net Cash Provided(Used)by Operating Activities 1,770,783 (106,264) (1,697,893) (33,374) 1,422,059 Cash Flows from Non-Capital Financing Activities: Cash transfers in - 937,291 1,581,226 2,518,517 5,835,650 Cash transfers out (1,457,300) - - (1,457,300) - Cash received from other funds 11,487,236 - 11,487,236 Cash paid from other funds - (125,906) (125,906) Admissions tax received 184,509 184,509 Grant subsidy 70,036 - - 70,036 Miscellaneous non-capital revenues - 5,862 63,419 69,281 - Net Cash Provided(Used)by Non-Capital Financing Activities (1,387,264) 12,430,389 1,703,248 12,746,373 5,835,650 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (179,954) (677,986) - (857,940) (366,630) Developer participation 674,925 674,925 Principal paid on capital debt - (440,000) (440,000) (488,349) Principal paid in defeasance of debt (12,068,576) (12,068,576) Interest paid on capital debt (430,513) (430,513) (38,981) Interest paid on interfund financing (16,656) (16,656) Net Cash Provided(Used)by Capital and Related Financing Activities 494,971 (13,617,075) (16,656) (13,138,760) (893,960) Cash Flows from Investing Activities: Interest received (867,342) (373,960) 68,949 (1,172,353) (422,403) Net Cash Provided(Used)by Investing Activities (867,342) (373,960) 68,949 (1,172,353) (422,403) Net Increase(Decrease)in Cash and Cash Equivalents 11,148 (1,666,910) 57,648 (1,598,114) 5,9415346 Cash and Cash Equivalents at Beginning of Year 23,917,537 9,926,925 48,350 33,892,812 4,223,664 Cash and Cash Equivalents at End of Year $ 23,928,685 $ 8,260,015 $ 105,998 $ 32,294,698 $ 10,165,010 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ 1,047,516 $ (303,614) $ (1,456,472) $ (712,570) $ (475,128) Adjustments to Reconcile Operating Income(loss) Net Cash Provided(Used)by Operating Activities: Depreciation 1,341,460 237,560 560,032 2,139,052 1,630,724 (Increase)decrease in accounts receivable (438,924) 24,333 (41,977) (456,568) - (Increase)decrease in leases receivable - (332,876) (3,135,198) (3,468,074) (Increase)decrease in deferred outflows from pensions 57,950 122,070 180,020 (Increase)decrease in notes and loans receivable 30,000 - 30,000 - (Increase)decrease in prepaid cost (379,985) (379,985) 140,685 (Increase)decrease in net pension asset (126,712) (104,346) (231,058) - Increase(decrease)in accounts payable (105,505) (66,054) 34,127 (137,432) 125,778 Increase(decrease)in accrued liabilities (19,841) (24,397) (44,238) - Increase(decrease)in deposits payable 136,127 136,127 Increase(decrease)in net pension liability (324,514) (1,366,697) (1,691,211) Increase(decrease)in deferred inflows from pensions 553,211 605,602 1,158,813 Increase(decrease)in deferred leases revenue inflows - 334,387 3,109,363 3,443,750 - Total Adjustments 723,267 197,350 (241,421) 679,196 1,897,187 Net Cash Provided(Used)by Operating Activities $ 1,770,783 $ (106,264) $ (1,697,893) $ (33,374) $ 1,422,059 Non-Cash Investing,Capital,and Financing Activities: Donated infrastructure $ 411,348 $ 1,735,481 $ $ 2,146,829 $ - See Notes to Financial Statements. 39 CITY OF RANCHO CUCAMONGA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30,2022 Private- Purpose Trust Fund Successor Custodial Agency of the Funds Former RDA Assets: Cash and investments $ 6,385,200 $ 22,745,691 Receivables: Accounts 2,016 - Taxes 47,266 Accrued interest 11,992 - Developer loans - 10,259,967 Prepaid bond insurance - 1,141,824 Advances to City - 3,953,624 Restricted assets: Cash and investments with fiscal agents 3,772,129 43 Total Assets 10,218,603 38,101,149 Deferred Outflows of Resources: Deferred charge on refunding - 1,940,305 Total Deferred Outflows of Resources - 1,940,305 Liabilities: Accrued interest - 3,895,660 Long-term liabilities: Due in one year - 14,659,580 Due in more than one year - 234,508,956 Total Liabilities - 253,064,196 Deferred Inflows of Resources: Deferred charges on refunding 1,394,667 Total Deferred Inflows or Resources - 1,394,667 Net Position: Restricted for organizations and other governments 10,218,603 (214,417,409) Total Net Position $ 10,218,603 $ (214,417,409) See Notes to Financial Statements. 40 CITY OF RANCHO CUCAMONGA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30,2022 Private- Purpose Trust Fund Successor Custodial Agency of the Funds Former RDA Additions: Collection of special taxes $ 6,130,070 $ 27,437,399 Net change in fair value of investments (258,888) - Interest 21,112 59 Total Additions 5,892,294 27,437,458 Deductions: Administrative expenses 285,525 - Contractual services 1,158 1,047,935 Interest expense 2,492,812 10,364,160 Principal expense 3,739,000 - Payments to city 285,537 250,000 Total Deductions 6,804,032 11,662,095 Changes in Net Position (911,738) 15,775,363 Net Position: Beginning of fiscal year,as originally reported (50,504,837) (230,192,772) Restatements 61,635,178 Beginning of fiscal year,as restated 11,130,341 (230,192,772) Net Position-End of the Year $ 10,218,603 $ (214,417,409) See Notes to Financial Statements. 41 THIS PAGE INTENTIONALLY LEFT BLANK 42 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS J U N E 30, 2022 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of Entity The City of Rancho Cucamonga was incorporated on November 30, 1977, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City operates under a council-manager form of government and provides its citizens with a full range of municipal services. It is governed by an elected five-member board. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Rancho Cucamonga (the City) and its component units, entities for which the City is considered financially accountable. The inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga is based on the provisions of GASB Statement No. 14 and amended with GASB Statements No. 39, 61 and 80. The blended component units discussed below, although legally separate entities, are in substance part of the government operation and so data from these component units has been combined herein. The following criteria were used in the determination of the blended component units: 1. The members of the City Council also act as the governing body of the Rancho Cucamonga Public Improvement Corporation (the Improvement Corporation), the Rancho Cucamonga Fire Protection District (the Fire District), the Rancho Cucamonga Library (the Library), and the Rancho Cucamonga Public Financing Authority(the Financing Authority). 2. The Improvement Corporation, the Fire District, the Library, and the Financing Authority are managed by employees of the City. A portion of the City's general overhead costs is allocated to the Fire District and the Library. 3. The City,the Improvement Corporation,the Fire District,the Library, and the Financing Authority are financially interdependent. They provide financial benefit and burden to the City. Blended Component Units The Improvement Corporation was incorporated on November 14, 1988, under the Non-Profit Public Benefit Corporation Law of the State of California. The Improvement Corporation was established for charitable purposes including rendering financial assistance to the City by financing, acquiring, constructing, improving and leasing public improvements for the benefit of residents of the City and the surrounding area. Separate financial statements are not available for the Improvement Corporation. The Fire District(formerly, Foothill Fire Protection District)was a special district formed by the County of San Bernardino for the purpose of fire suppression within its boundaries. Effective July 1, 1989, operations of this district were taken over by the City. The Fire District still operates as a separate special district; however, now it is under the control of the City instead of the County of San Bernardino. Separate financial statements are not available for the Fire District. 43 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The Library was part of the San Bernardino County Library System in which the City participated. Effective July 1, 1994, and pursuant to California Code Section 19104, the City withdrew from the County Library System. As of this date, the Library operates as a separate entity under the control of the City.Separate financial statements are not available for the Library. The Financing Authority was established on April 21, 1999, pursuant to Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title I of the California Government Code. Its purpose is to facilitate the financing and the refinancing of construction, expansion, upgrading and improvement of the public capital facilities necessary to support the rehabilitation and construction of residential and economic development within the City. Separate financial statements are not available for the Financing Authority. b. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. The effect of interfund activity has been removed from these statements, except for the interfund services provided and used. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is 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 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 revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds 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 financial 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 related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 44 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose,the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for sales tax and grant revenue where the government considers revenue to be available if collected within 180 days of the end of the current fiscal period. The primary revenue sources,which have been susceptible to accrual by the City,are real and personal property tax, other local taxes,franchise fees,forfeitures and penalties, motor license fees, rents and concessions, interest revenue, and state and Federal grants and subventions. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City's fiduciary funds consist of custodial funds and a private purpose trust fund. Custodial funds are used to account for situations where the government's role is purely custodial. Private purpose trust funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. 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 City reports the following major governmental funds: • The General Fund is the general operating fund of the City.All general tax receipts and fee revenue not allocated by law, Council policy or contractual agreement to other funds are accounted for in the General Fund. General Fund expenditures include operations traditionally associated with activities which are not required to be accounted for or paid by another fund. • The Development Impact Fees Fund accounts for the receipts from development impact fees which are used to defray all or a portion of the cost of public facilities as a result of development. • The Lighting Districts Fund accounts for the costs associated with providing street lighting throughout the City. Revenues are provided by special assessments levied against the benefiting property owners. • The Housing Successor Agency Fund accounts for the assets of the former Redevelopment Agency's Low and Moderate Income Housing Fund. The source of revenue in the fund is primarily from repayment of Low and Moderate Income notes and loans receivable, and interest received from the notes and loans receivable. • The Fire District Fund accounts for the revenue and disbursement of funds received by the Fire District in the course of the District's fire protection services. The source of revenue in the fund is primarily from property taxes. • The Federal Grants Fund accounts for grant funds received directly or in pass-through from the Federal government and the allowable expenditures reported in those programs. The Federal grant programs reported in this special revenue fund are nonrecurring. 45 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The City reports the following major proprietary funds: • The Municipal Utility Fund accounts for the costs of labor and materials used in the operation, maintenance, construction and consumption of electric services to certain residential, commercial, and industrial customers within the City. • The Fiber Optic Network Fund accounts for receipts from user charges and leases for conduit and fiber access, costs associated with the City's existing utility, information technology and traffic fiber conduits. Additionally, the City reports the following fund types: • Capital projects funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by the proprietary funds). • Internal service funds account for the financial transactions related to repair, replacement and maintenance of City-owned vehicles and equipment and the City's general information systems and telecommunications hardware and software. • Custodial funds are used to account for money and property held by the City as trustee or custodian. They are also used to account for various assessment districts and community facilities districts for which the City acts as an agent for debt service activity. • A private-purpose trust fund is used to account for the assets and liabilities of the former Redevelopment Agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former Redevelopment Agency are paid in full and assets have been liquidated. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government's proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 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. 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 non-operating 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 of the enterprise funds and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 46 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity Cash and Investments All cash and investments, except those that are held by fiscal agents or through a trust, are held in a City pool. These pooled funds are available upon demand and therefore are considered cash and cash equivalents for purposes of the statement of cash flows. Investments held by fiscal agents with an original maturity of three months or less are also considered cash equivalents and are shown as restricted assets for financial statement presentation purposes. Investments for the City,as well as for its component units, are reported at fair value. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." All trade receivables are shown net of allowance for uncollectibles. Prepaid Costs 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. These are accounted for using the consumption method, and, accordingly, the expenditure is recorded in the period in which the goods or services are received. Restricted Assets Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Investments in the PARS Public Agencies Post-Employment Benefits Trusts are held for the purpose of rate stabilization of future pension obligations. The trusts are Section 115 irrevocable trusts. The investments are reported at fair value. Capital Assets Capital assets, which include land, building improvements, improvements other than buildings, computer equipment and software, equipment and vehicles, furniture and fixtures, infrastructure (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost when purchased or constructed. Donated capital assets are recorded at the estimated price that would be paid to acquire the asset at the date of acquisition. 47 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The costs of normal maintenance and repairs that do not add to the value of the capital assets or materially extend capital assets' useful lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Years Building improvements 10-50 Improvements other than buildings 10-40 Computer equipment and software 3-15 Equipment and vehicles 3-20 Furniture and fixtures 3-20 Infrastructure 10-75 Intangible assets 10-15 Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government reports deferred outflows of resources related to certain changes arising from net pension liability, net pension asset, and net OPEB asset. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s)and so will not be recognized as an inflow of resources (revenue) until that time. The government has several items that qualify for reporting in this category: 1. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues for revenues that are measurable but not collected within 60 days of the end of the current fiscal period or 180 days for sales tax and grant revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 2. Pension and OPEB related deferred inflows are reported only on the Statement of Net Position. The government reports deferred inflows of resources related to pensions arising from certain changes in the net pension liability, net pension asset, or net OPEB asset. Deferred inflows and outflows of resources related to changes in the net pension liability, net pension asset, and net OPEB asset are recognized systematically over time. Amounts are first recognized in the year the change occurs. The remaining amounts are to be recognized in future periods. The recognition period differs depending on the source of the change, and they currently are amortized over 5 years or the average remaining service life time. 48 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 3. A deferred inflow of resources related to leases is reported for the value of lease receivable payments to be recognized as an inflow of resources in a systematic and rational manner over the term of the lease agreements. Pension For purposes of measuring the net pension liability, net pension asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans'fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. 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 Statement No. 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, 2020 Measurement Date June 30, 2021 Measurement Period July 1, 2020 to June 30, 2021 PARS Retirement Enhancement Plan For purposes of measuring the net pension liability, net pension asset, deferred outflows of resources and deferred inflows of resources related to the retirement enhancement plan, and retirement enhancement plan expense, information about the fiduciary net position of the plan and additions to/deductions from the plan's fiduciary net position have been determined by an independent actuary. Contributions are recognized in the period in which the contributions are due and there exists a formal commitment to provide the contributions. Liabilities related to investment and administrative expenses are recognized when incurred. Those related to obligations for employee benefits and refunds are recognized when due and payable in accordance with the terms of the plan. GASB Statement No. 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, 2020 Measurement Date June 30, 2021 Measurement Period July 1, 2020 to June 30, 2021 49 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Other Post-Employment Benefits (OPEB) For purposes of measuring the net OPEB asset, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB Plan, the assets of which are held by the California Employers' Retiree Benefit Trust (CERBT), an agent multiple-employer defined benefit healthcare plan administered by the California Public Employees' Retirement System (CaIPERS), and additions to/deductions from the OPEB plan's fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. GASB Statement No. 75 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, 2021 Measurement Date June 30, 2021 Measurement Period July 1, 2020 to June 30, 2021 Accrued Employee Benefits The City's policy permits employees to accumulate earned but unused vacation and sick pay benefits.The total amount of liability for unused vacation and sick pay benefits is accrued when incurred in the government-wide financial statements.The City utilizes the General Fund and the Fire District Special Revenue Fund in the governmental fund financial statements to account for the short-term portion of its liability. The short-term portion is the unused reimbursable leave still outstanding following an employee's resignation or retirement. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Fire District employees cannot accrue more than one and one-half times their regular annual entitlement. Sick leave is payable when an employee is unable to work because of illness. For City employees, those who terminate their employment after five years of continuous service and have at least 120 hours of accrued leave. For Fire District employees,sick leave may be accumulated indefinitely or an employee with ten or more years of service is eligible to convert unused sick leave to vacation in accordance with the following and with any remainder of hours to still remain unused sick time: Accumulated Sick Employee Leave Balance Vacation Type Prior Calendar Year Conversion Rate shift 108- 144 hours one-half shift 72- 108 hours one-fourth 40-hour 90- 120 hours one-half 40-hour 60-90 hours one-fourth 50 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Upon service retirement of a public safety employee, the option exists to sell back up to one-half of total accumulated sick leave, have the leave credited toward service in accordance with the Public Retirement Law, or apply the cash value of up to 100% of the leave to the employee's VEBA account. All unused sick leave is forfeited upon termination, other than for normal retirement. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. In governmental funds financial statements, the face amount of debt when issued is reported as other financing sources. Repayment of debt is reported as debt service expenditures. Fund Balance Fund balance is essentially the difference between the assets, liabilities, and deferred inflows reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts can be spent. • Non-spendable fund balance (inherently non-spendable) • Restricted fund balance (externally enforceable limitations on use) • Committed fund balance (self-imposed limitations on use) •Assigned fund balance (limitation resulting from intended use) • Unassigned fund balance (residual net resources) The General Fund is the only fund that can report a positive unassigned fund balance amount. In governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to these purposes, it may be necessary to report a negative unassigned fund balance in that fund. The City Council, as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by the adoption of a resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently. Fund balance commitments are as follows: Changes in Economic Circumstances The City's General Fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the City General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the Fire District's operating budget for the upcoming fiscal year. The specific uses of this commitment include: 51 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 1)the declaration of a state or federal state of emergency or a local emergency as defined in Rancho Cucamonga Municipal Code Section 2.36.020; or 2) a change in economic circumstances in a given fiscal year that results in revenues to the City/Fire District being insufficient to cover expenditures for one or more fiscal years. The City Council/Fire Board may, by the affirming vote of four members, change the amount of this commitment and/or the specific uses of these monies. City Facilities Capital Repair The City's General Fund balance committed for City facilities capital repair and property acquisition is established at a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than buildings for governmental activities, excluding assets owned by the Fire District. Fire District Facilities Capital Repair The Fire District's fund balance committed for Fire District facilities capital repair to a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for public safety-fire activities. Working Capital The City's General Fund balance committed for Working Capital is established at a minimum goal of 5% of the City's General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for Working Capital is established at a minimum goal of 50% of the District's operating budget for the upcoming fiscal year. Self-Insurance The City's General Fund balance and the Fire District's fund balance committed for payment of Worker's Compensation, General Liability, and Employment Practices Liability claims is established at a minimum goal of eight times the City's and the Fire District's total yearly SIRs for all types of insurance coverage. PASIS Worker's Compensation Tail Claims The Fire District's fund balance committed for payment of outstanding Worker's Compensation claims remaining after the Fire District's withdrawal from PASIS is established at a goal equal to the most recent fiscal year end Claims Cost Detail Report from the Fire District's third-party administrator plus 15%. Employee Leave Payouts The City's General Fund balance and the Fire District's fund balance committed for employee leave payouts is valued in accordance with the City's labor contracts as of the last day of the fiscal year. Vehicle and Equipment Replacement The Fire District's fund balance committed for the replacement of fire safety vehicles and equipment as determined based on the Fire District's replacement 52 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) criteria is established at a minimum goal of 50% of Fire District vehicle and equipment replacement value. Law Enforcement The City's General Fund balance committed for public safety purposes, including operations, equipment, capital outlay, personnel, and booking fees. The funding goal for this reserve is the equivalent of 100% of the most recently approved Schedule A from the San Bernardino County Sheriff's Department. Economic Development Strategic Reserve The City's General Fund balance committed for the acquisition and development of key properties to promote economic development that will benefit the City as a whole and, potentially, generate ongoing revenues to the City whenever feasible through negotiated agreements with third parties (including but not limited to land leases or public-private partnerships). Establishment of this reserve is a City Council goal, established in the spring of 2021. The funding goal for this reserve is the equivalent of the current value of a 10-acre mixed-use site on Foothill Boulevard as of January 1 of each year. Seasonal Weather Emergency Reserve The City's General Fund balance committed for unanticipated costs incurred due to damage resulting from severe weather emergencies such as wind, flood, fire, extreme heat, extreme cold, and other forces of nature. The reserve will provide funding for these costs without impacting the City's operating budget and will be appropriated by the City Council on an as needed basis when extreme seasonal weather emergencies occur. Community Benefit Projects A portion of the City's General Fund balance, received from projects that include a development agreement, which is committed for addressing projects' expected impacts on affordable housing demand, future greenhouse gas emissions, fire protection services, electric vehicle charging, reduction in vehicle miles traveled, pedestrian safety improvements, carbon capture, alternative energy production, noise reduction, environmental justice, and related impacts typically associated with, but not limited to, large warehouse, industrial,and commercial developments. Public Safety Personnel Affordable Housing A portion of the Fire District's fund balance committed to provide additional funding to match the City's contributions to help with the creation of affordable for-sale housing for public safety personnel including but not limited to Fire District employees. Funding may be used for silent seconds, closing costs,assistance with obtaining financing, or to help buy down the cost of design and construction of single-family housing units. The funding goal for this reserve is established as the value of the affordability gap to construct 50 housing units that are affordable at the 60% California Tax Credit Allocation Committee (TCAC) median income with a 4% tax credit scenario per unit, or$192,600 per unit, for a total funding goal of $9,630,000. The affordability gap was determined as part of the Non- Residential Linkage Fee Nexus Study dated October 5, 2021, prepared by Keyser Marston Associates, Inc. 53 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. The City considers restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. Net Position In the governmental-wide financial statements and proprietary fund financial statements, net position is classified as follows: Net Investment in Capital Assets — This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets. Restricted Net Position —This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Position —This amount is all net position that does not meet the definition of"net investment in capital assets" or"restricted net position." Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted — net position to have been depleted before unrestricted —net position is applied. Property Tax Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M.on the first day in January proceeding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30.All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31. 54 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Functional Classifications Expenditures of the governmental funds are classified by function. Functional classifications are defined as follows: • General Government includes legislative activities, City Clerk, City Attorney, City Manager as well as management or supportive services across more than one functional area. • Public Safety- Police includes those activities which involve police protection. • Public Safety- Fire Protection includes activities of the Fire District which involve the protection of people and property from fire as well as emergency preparedness. • Public Safety - Animal Center includes those activities which involve animal care and services. • Community Development includes those activities which involve planning and economic development, as well as building and safety. • Community Services includes activities which provide recreation, cultural and educational services. • Engineering and Public Works includes all maintenance, engineering and capital improvements which relate to streets, parks, flood control and other public facilities. II. STEWARDSHIP Note 2: Stewardship, Compliance and Accountability a. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in progress at year-end are completed. They do not constitute expenditures or estimated liabilities. The following funds have encumbrances at June 30, 2022: General Fund $ 3,482,602 Development Impact Fees 275,070 Lighting Districts 437 Fire District 18,164,770 Federal Grants Fund 31,534 Other Governmental Funds 9,139,086 55 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 2: Stewardship, Compliance and Accountability (Continued) b. Deficit Fund Balances or Net Position The Lighting Districts Fund has a deficit fund balance of$4,219,819 at June 30, 2022. The deficit fund balance will be eliminated by the repayment of the interfund advance from the General Fund described in Note 6. The following nonmajor special revenue funds reported deficits in fund balance at June 30, 2022: Recreation $ 5,747 Pedestrian Grant 9,237 State Grants Fund 8,108 Enhanced Infrastructure Financing District 241,798 The deficits in the Recreation, Pedestrian Grant, State Grants, and Enhanced Infrastructure Financing District special revenue funds will be eliminated by future expected revenue sources. III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2022, cash and investments were reported in the accompanying financial statements as follows: Private- Governmental Business-Type Custodial Purpose Trust Total Cash and activities Activities Funds Fund Investments Cash and Investments $439,757,206 $ 32,294,698 $ 6,385,200 $ 22,745,691 $501,182,795 Restricted: Cash with fiscal agent 412,846 - 3,772,129 43 4,185,018 Pension rate stabilization fund 13,120,594 - - 13,120,594 Total Cash and Investments: $453,290,646 $ 32,294,698 $ 10,157,329 $ 22,745,734 $518,488,407 The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures or funds held in a trust. Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on average daily cash balances. Interest Income from cash and investments with fiscal agents and through a trust are credited directly to the related fund. Deposits At June 30,2022,the carrying amount of the City's deposits was$32,974,703 and the bank balance was $34,867,415. The $1,892,712 difference represents outstanding checks and other reconciling items. The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which 56 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 3: Cash and Investments (Continued) are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Investments Under provision of the City's investment policy, and in accordance with the California Government Code, the following investments are authorized: • United States Treasury Securities • United States Federal Agencies • Supranational Securities • Municipals Notes or Bonds • Negotiable Certificates of Deposit • Asset-Backed Securities • Medium-Term Notes • Bankers' Acceptances • Commercial Paper • Repurchase Agreements (Repos) • State of California Local Agency Investment Fund (LAIF) • Joint Powers Authority(JPA) Investment Pool • Money Market Funds • Bank Deposits Investments Authorized by Debt Agreements The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer's Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. 57 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 3: Cash and Investments (Continued) Credit Risk As of June 30, 2022, the City's investments in corporate bonds were A3 of better by Moody's. As of June 30, 2022, the City invested in Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, and municipal bonds which were all rated "Aaa" by Moody's. All securities were investment grade and were legal under State and City law.As of June 30,2022,the City's investments in external investment pools and money market mutual funds are unrated. Custodial Credit Risk The 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 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 to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. As of June 30, 2022, the City's deposits (bank balances) were insured by the FDIC up to $250,000 and the remaining balances were collateralized under California Law. Concentration of Credit Risk The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments. As of June 30, 2022, in accordance with GASB Statement No. 40, if the City has invested more than 5% of its total investments in any one issuer, it is exposed to credit risk. The following investments are considered exposed to credit risk: Federal National Mortgage Association 5.39% Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this. Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy establishes a maximum maturity of 180 days for Banker's Acceptances, 270 days for Commercial Paper, one year for Repurchase Agreements and five years for all other individual investments. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. 58 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 3: Cash and Investments (Continued) As of June 30, 2022, the City had the following investments and original maturities: Investment Maturities (in Years) 6 months 6 months 1 year 3 years or less to 1 year to 3 years to 5 years Fair Value Investments Local Agency Investment Fund $ 97,725,874 $ $ - $ $ 97,725,874 Federal Governmental Agencies Federal Farm Credit Bank - - 2,777,211 2,777,211 Federal Home Loan Mortgage Corporatior - 6,288,814 2,110,917 8,399,731 Federal National Mortgage Association - 15,690,013 9,562,239 25,252,252 Municipal Bonds 499,945 - 490,515 - 990,460 Corporate Notes - 22,421,596 41,346,289 63,767,885 Certificate of Deposit 489,497 464,297 675,815 1,629,609 Negotiable CD - 2,970,576 - - 2,970,576 US Treasury Note 832,256 29,364,467 132,552,620 78,669,357 241,418,700 Supernational - - 6,702,714 1,542,130 8,244,844 Money Market 3,438,518 - - - 3,438,518 Asset-Backed Security - - 1,454,168 10,138,264 11,592,432 Restricted investments Mutual Fund 13,120,594 - - - 13,120,594 Investment with Fiscal Agents: Money Market Fund 4,185,018 - - - 4,185,018 Total $ 119,802,205 $ 32,824,540 $ 186,064,737 $ 146,822,222 $485,513,704 Fair Value Hierarchy 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 has the following recurring fair value measurements as of June 30, 2022: Fair Value Level 1 Level 2 Investments: Local Agency Investment Fund $ 97,725,874 $ 97,725,874 $ - Federal Governmental Agencies Federal Farm Credit Bank 2,777,211 - 2,777,211 Federal Home Loan Mortgage Corporation 8,399,731 - 8,399,731 Federal National Mortgage Association 25,252,252 - 25,252,252 Municipal Bonds 990,460 - 990,460 Corporate Notes 63,767,885 - 63,767,885 Certificate of Deposit 1,629,609 - 1,629,609 Negotiable CD 2,970,576 - 2,970,576 US Treasury Note 241,418,700 241,418,700 - Supernational 8,244,844 - 8,244,844 Money Market 3,438,518 3,438,518 - Asset-Backed Security 11,592,432 - 11,592,432 Restricted investments Mutual Fund 13,120,594 13,120,594 - Investment with Fiscal Agents: Money Market Fund 4,185,018 4,185,018 - Total $485,513,704 $359,888,704 $125,625,000 59 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 3: Cash and Investments (Continued) Deposits and securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Local Agency Investment Funds are valued using specified fair value factors. Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes. There are no Level 3 investments. Note 4: Notes and Loans Receivables Beginning Ending Balance Additions Reductions Balance Governmental Activities NHDC(San Sevaine) $ 45,125,958 $ 404,577 $ (247,883) $ 45,282,652 LINC-Pepperwood Housing Investors, LP 27,830,774 432,762 (6,248) 28,257,288 HB Housing Partners, L.P. 12,873,008 270,000 13,143,008 SCHDC(Rancho Verde) 7,754,777 97,498 (7,470) 7,844,805 SCHDC(Heritage Pointe Senior Apartments) 2,944,220 219,662 3,163,882 Rancho Workforce Housing, L.P. 33,347,018 795,660 34,142,678 North Town Housing Partners(Villa Del Norte) 10,568,840 177,876 (162,905) 10,583,811 NHDC(Olen Jones Senior Apartments) 4,733,225 128,232 (409,607) 4,451,850 Villa Pacifica II LP 9,572,348 260,515 - 9,832,863 Day Creek Senior Housing Partners 2, L.P. 5,323,366 3,763,397 9,086,763 Day Creek Senior Housing Partners, L.P. 5,233,370 152,291 - 5,385,661 First-Time Homebuyer Program 3,066,808 - (91,000) 2,975,808 $ 168,373,712 $ 6,702,470 $ (925,113) $ 174,151,069 Notes and loans receivables consist of the following at June 30, 2022: Governmental activities 1. On September 1, 2005, the Agency entered into a loan agreement with Northtown Housing Development Corporation (NHDC) for the purchase of undeveloped real property and the development of an apartment complex (San Sevaine)which will increase the supply of affordable housing to low and moderate income households for a period of ninety-nine (99) years. This loan is a line of credit not-to-exceed $40,700,000 with simple interest accruing at 1% per annum from the date of disbursement for a term of 55 years (2060), as modified on May 6, 2009, with Amendment#2. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2022, the advances paid against this line of credit amount to $40,457,658 and accrued interest amounts to $4,824,994 for a total of$45,282,652. Accrued interest is offset by deferred revenue. 2. On April 19, 2006, the Agency entered into a loan agreement with LINC-Pepperwood Housing Investors, LP to provide financial assistance from the Low and Moderate Housing Set-aside Fund to purchase and rehabilitate the Pepperwood Apartment Homes, which will increase the supply of affordable housing to low and moderate income households, for not less than ninety-nine (99) years. The loan is in the form of a line of credit not-to-exceed $21,638,113, which includes the rollover of the BLT Partnership No. 1 loan of $2,350,000 and an amendment and increase of $1,288,113 on May 16, 2007. The outstanding principal balance of the loan will accrue simple interest at 2% per annum from the date of disbursement for a term of 56 years (2062). In addition to the extent there are Residual Receipts, the Developer shall pay to the Agency 50% of the Residual Receipts from the 60 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 4: Notes and Loans Receivables (Continued) preceding year. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City.As of June 30,2022,advances paid against this line of credit amounts to $21,638,113 and accrued interest amounts to$6,619,175 for a total balance of$28,257,288.Accrued interest is offset by deferred revenue. 3. On September 1, 2005, the Agency entered into a loan agreement with HB Housing Partners, L.P. to provide financial assistance from the Low and Moderate Housing Set-aside Fund to purchase and rehabilitate the Woodhaven Manor Apartments,which will increase the supply of affordable housing to low and moderate income households for not less than ninety-nine (99) years. The loan is in the form of a line of credit not-to-exceed $9,000,000. Simple interest accrues on the advances as follows: 1) 3% per annum from the date of disbursement through and including the date immediately prior to September 21, 2022; and 2) 2% per annum from September 21, 2022 through September 21, 2060. In addition, to the extent there are Residual Receipts-, the Developer shall pay to the Agency either 33% or 50% of the Residual Receipts from the preceding year. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2022, the advances paid against this line of credit amounted to $9,000,000 and accrued interest amounts to $4,143,008 for a total of $13,143,008. Accrued interest is offset by deferred revenue. 4. On March 9, 2006, the Agency entered into a loan agreement with The Southern California Housing Development Corporation (SCHDC) for the acquisition, construction and operation of affordable housing apartments, referred to as the Rancho Verde Expansion project, which will increase the supply of very-low, low and moderate income households. This loan is a line of credit not-to-exceed $6,500,000 with simple interest accruing at 1.5% per annum until June 27, 2035, and 2% per annum thereafter and payable without demand or notice on June 27, 2060. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City.As of June 30, 2022, the advances paid against this line of credit amounted to$6,499,910 and accrued interest amounts to 1,344,895 for a total of$7,844,805. Accrued interest is offset by deferred revenue. 5. On December 1, 2001, the Agency entered into a residual receipts promissory note loan agreement in the form of a line of credit not-to-exceed $4,000,000 with Malvern Housing Partners, L.P. and Southern California Housing Development Corporation(SCHDC)for the acquisition,construction and operation of a 49-unit senior multifamily apartment project, known as Heritage Pointe Senior Apartments. A portion of the necessary funding was provided from proceeds of a $4,000,000 bond issue by Southern California Housing Development Corporation. Funding provided by the Agency was in the form of semi-annual principal payments toward these bonds from the Agency's low and moderate income housing fund. As advances were made by the Agency, beginning April 1, 2003, these amounts were added to and became the principal balance of this Residual Receipts Note, and are accruing simple interest at 1% per annum from the date of payment through December 2056. Annual payments of principal and accrued interest shall not commence until the operation of the project has generated residual receipts. On December 5, 2007, the residual receipts promissory note was amended and restated in connection with the refunding of the Southern California Housing Development Corporation's bond with the proceed of the Agency Housing Set-Aside Tax Allocation Bonds, Series 2007A and Series 2007B.All residual receipts in excess of fifteen percent of the gross operating income of the 61 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 4: Notes and Loans Receivables (Continued) project shall be paid to the Agency annually. All principal and accrued interest at the simple interest rate of 1% per annum shall be due and payable in April 2056. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City.As of June 30, 2022, the advances paid against this line of credit amounted to$3,038,021 and accrued interest amounts to$125,861 for a total of$3,163,882. Accrued interest is offset by deferred revenue. 6. On September 1, 2008, the Agency entered into a residual receipts promissory note loan agreement in the form of a line of credit not-to-exceed $27,565,000 with Rancho Workforce Housing, L.P. for the acquisition, construction and development of a 166-unit rental housing development, including 131 residential units for low and moderate income residents. This loan bears simple interest of 2.386% compounded annually from the date of disbursement, with a term commencing on the date of this agreement and continuing for fifty-five (55) years from the date of the recordation of the Certificate of Completion. Commencing after Borrower's fiscal year first ending after the completion of construction of the development, Borrower shall make repayments to the Agency equal to 50% of the Residual Receipts. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2022, the advances paid against this line of credit amounted to$25,868,857 and accrued interest amounts to$8,273,821 for a total of$34,142,678. 7. On September 26, 1994, the Agency entered into a Disposition and Development Agreement(DDA)and loan agreement(as modified on March 22, 1996)for$5,929,181 with North Town Housing Partners for the acquisition of the 88-unit multifamily rental Villa Del Norte housing project for low and moderate income households. Payments of principal and interest on the loan are due and payable only to the extent that net annual cash flow from the development is available. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. On October 9, 2014, the Loan was modified as a result of a refinancing of the project in order to provide funding for significant rehabilitation improvements to the development. As a result of the refinancing, the term of the Loan and the affordability covenant for the affordable units was extended by 55 years beginning September 1, 2014. The term of the Loan will now terminate on September 1, 2069. The note carries the same interest rate of 3% and the original principal amount of$5,929,181 remains the same. As of June 30, 2022, the outstanding balance amounts to $10,583,811, including accrued interest of$4,654,630. Accrued interest is offset by deferred revenue. 8. On June 6, 2001, the Agency entered into a loan agreement (as updated on December 1, 2002)for$4,700,000 with Northtown Housing Development Corporation (NHDC) for the development of the Olen Jones Senior Apartments. The term of the loan is 55 years, with zero interest accruing for the first 15 years, then accruing simple interest at 3% per annum for the remainder of the term. Payments of principal and interest on the loan are due and payable only to the extent that net annual cash flow from the development is available. Upon dissolution of the Agency,the loan receivable was transferred to the Housing Successor Agency of the City.As of June 30, 2022,the outstanding balance amounts to$4,274,400 and accrued interest amounts to including $177,450 for a total of$4,451,850. Accrued interest is offset by deferred revenue. 62 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 4: Notes and Loans Receivables (Continued) 9. On July 11, 2014, the City entered into a loan agreement with 7418 Archibald LLC ("Developer") in the amount of $42,913 ("City Predevelopment Loan"), pursuant to certain Acquisition, Disposition, Development and Loan Agreement dated February 19, 2014, between Developer and the City (the "ADDLA"), to develop a 60-unit affordable senior housing project at 7418 Archibald Avenue, referred to as Villa Pacifica II. The interest of the loan is zero percent(0%) per annum. The principal and any interest due under this Note shall be repaid or forgiven as set forth in the ADDLA, as amended by a first Implementation and Amendment to Acquisition, Disposition, Development and Loan Agreement dated February 17, 2016 between the Borrower's predecessor-in-interest and City and a Second Implementation and Amendment to Acquisition, Disposition, Development and Loan Agreement dated April 1, 2017. The loan may be prepaid in full or in part, at any time without penalty or premium. On April 1, 2017, the City entered into a Promissory Note Secured By Deed of Trust with Villa Pacifica II LP ("Borrower"), not to exceed the sum of$8,683,821 consisting of the existing Predevelopment Loan of $42,913 made by the City to the Developer, a $2,880,000 purchase money loan in connection with the acquisition of land from City, a $2,760,908 construction loan that is being partially disbursed on the date of the closing for the City impact fees and to reimburse Villa Pacifica II LP for construction costs accrued prior to the date of the loan, and a permanent loan of up to $3,000,000 ("Perm Loan Principal") to be disbursed as described in the ADDLA from Villa Pacifica I Funds actually received by the City under the Villa Pacifica I Note. The term of the loan is 55 years, with simple interest accruing at 3% per annum on the outstanding principal balance. Payment of principal and interest is 50%of the Residual Receipts, with payments credited toward accrued interest and then to outstanding principal, on an annual basis on June 1 of each calendar year. As of June 30, 2022, the advances paid against this line of credit amounted to $8,683,821 and accrued interest amounted of $1,149,042, for a total amount of $9,832,863. 10. On May 4, 2016, the City approved a Disposition, Development, and Loan Agreement (DDLA)with Day Creek Senior Housing Partners, LP, also known as National CORE, for the development of a 140-unit senior rental affordable housing project at west of Day Creek Boulevard and north of Base Line Road. The DDLA was amended in June 2017, June 2018, and March 2019. On March 6, 2019,the City entered into land and construction loans in connection with the DDLA: The City Land Loan valued at$7,700,000, consisting of a purchase money loan for the acquisition of the property from the City, was divided into two separate loans: (1) City Land Loan to Day Creek Senior Housing Partners, LP in the amount of $4,896,303 and (2) City Land Loan to Day Creek Senior Housing Partners 2, L.P. in the amount of$2,803,697. Both loans bear 2.91% interest compounded annually for 55 years. Payment of principal and interest is 50% of the Residual Receipts, with payments credited toward accrued interest and then to the outstanding principal, on an annual basis on June 1 of each calendar year.As of June 30, 2022,the outstanding balances of the land loans are as follows: (a) Day Creek Senior Housing Partners, LP amounts to$5,385,661 including $489,358 accrued interest and (b) Day Creek Senior Housing Partners 2, L.P. amounts to $3,083,911 including $280,214 accrued interest. Accrued interest is offset by deferred revenue. 63 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 4: Notes and Loans Receivables (Continued) The City Construction Loan valued at $5,700,000 with Day Creek Senior Housing Partners 2, L.P. was deposited to JPMorgan Chase Bank, N.A.(Escrow) held and disbursed pursuant to the terms of the Escrow Agreement. The loan bears simple interest of 3% per annum from the date of disbursement from the Escrow fund for a term of 55 years. Payment of principal and interest is 50% of the Residual Receipts, with payments credited toward accrued interest and then to outstanding principal, on an annual basis on June 1 of each calendar year. As of June 30, 2022,the outstanding balance is$6,002,852 including accrued interest of$302,852.Accrued interest is offset by deferred revenue. 11. First-time homebuyer loans represent the loans made under the First Time Homebuyer's Program. The payment of the loan is not due until the property is sold. As of June 30, 2022, the outstanding balance amounts to $2,975,808 with no interest due. Total notes and loans receivables for governmental activities at June 30, 2022, including accrued interest of$32,385,300 amounted to $174,151,069. Business-type activities 12. In October 2015, the City entered into an unsecured promissory note for the costs of constructing an electric utility line extension related to the development of a hotel on Haven Avenue. The costs to construct the electric utility line extension amounted to $337,480. The note accrues simple interest at 1.46% per month (17.52% per annum) beginning September 1, 2018 and is fully due and payable on February 1, 2022. Outstanding principal may be prepaid in whole or in part at any time. Principal may be partially reduced on February 1 of each year based on average hotel occupancy for the preceding calendar year exceeding thresholds established in the note. The promissory note was paid off during fiscal year 2021-22. Note 5: Leases The City implemented GASB Statement No. 87 in the fiscal year ended June 30, 2022. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset,and a lessor is required to recognize a lease receivable and a deferred inflow of resources. 64 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 5: Leases (Continued) a. Leases Receivable and Deferred Inflows of Resources The City leases land to various companies for installation of cellular towers and fiberoptic communications. The terms range from 3 years to 25 years as of the contract commencement date. The City also leases land to Goals Soccer Centers, Inc. to operate a soccer sports complex. The term is 45 years as of the contract commencement date. Some leases have extension options of ranging from five to 20 years. An initial lease receivable was recorded in the amount of$8,639,000.As of June 30,2022,the value of the lease receivable is$8,234,892. The value of the deferred inflow of resources as of June 30, 2022 was$8,110,964, and the City recognized lease revenue of $528,038 during the fiscal year. The amount of revenues recognized during the fiscal year for variable and other payments not previously included in the measurement of the lease receivable was $123,928. The principal and interest payments that are expected to maturity are as follows: Governmental Activities Principal Interest Total Fiscal Year Payments Payments Payments 2023 $ 289,259 $ 90,704 $ 379,963 2024 305,186 85,503 390,689 2025 315,017 80,037 395,054 2026 311,963 74,430 386,393 2027 328,550 68,626 397,176 2028 -2032 1,803,378 246,834 2,050,212 2033 -2037 775,124 112,377 887,501 2038 -2042 368,759 54,668 423,427 2043 -2047 269,582 12,188 281,770 $ 4,766,818 $ 825,367 $ 5,592,185 Business-Type Activities Principal Interest Fiscal Year Payments Payments Total Payments 2023 $ 115,235 $ 84,206 $ 199,441 2024 117,547 82,295 199,842 2025 119,907 80,340 200,247 2026 95,174 78,341 173,515 2027 82,216 76,538 158,754 2028-2032 267,677 361,269 628,946 2033-2037 284,149 327,126 611,275 2038-2042 325,939 288,140 614,079 2043-2047 340,779 244,536 585,315 2048-2052 376,305 198,694 574,999 2053-2057 428,124 146,876 575,000 2058- 2062 487,078 87,922 575,000 2063 -2067 427,944 22,472 450,416 $ 3,468,074 $ 2,078,755 $ 5,546,829 65 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 5: Leases (Continued) b. Lease Payable and Right to Use Lease Assets On July 1, 2021, the City entered into a 76 month lease as Lessee for the use of land owned by Chaffey Joint Union School District. An initial lease liability was recorded in the amount of $226,622. As of June 30, 2022, the value of the lease liability is $188,493. The City is required to make annual fixed payments of$39,086. The lease has an interest rate of 1.217%. Right-to-use leased assets include the following at June 30, 2022: Amount of Leased Capital Accumulated Lease Type Major Class of Underlying Asset Assets Amortization Land Lease Right-to-Use Lease- Land $ 226,622 $ 35,704 Total $ 226,622 $ 35,704 Future principal and interest requirements to maturity for each lease liability are as follows: Governmental Activities Principal Interest Fiscal Year Payments Payments Total Payments 2023 $ 36,792 $ 2,294 $ 39,086 2024 37,240 1,846 39,086 2025 37,693 1,393 39,086 2026 38,152 934 39,086 2027 38,616 470 39,086 Total $ 188,493 $ 6,937 $ 195,430 66 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 6: Capital Assets Governmental activities capital assets for the year ended June 30, 2022, was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental Activities: Capital assets, not being depreciated: Land $ 100,707,433 $ 565,299 $ (1,923,700) $ - $ 99,349,032 Right of way 237,230,155 - - - 237,230,155 Construction-in-progress 17,629,468 20,404,658 (664,217) (4,468,586) 32,901,323 Total Capital Assets, Not Being Depreciated 355,567,056 20,969,957 (2,587,917) (4,468,586) 369,480,510 Capital assets, being depreciated: Right-to-use land - 226,622 - - 226,622 Building improvements 234,031,546 - - - 234,031,546 Improvement other than buildings 44,367,385 72,261 - 428,361 44,868,007 Equipment and vehicles 58,402,718 770,082 (676,741) - 58,496,059 Furniture and fixtures 3,547,780 - - - 3,547,780 Infrastructure 509,040,081 493,070 (6,329) 4,040,225 513,567,047 Intangible 3,328,862 - - - 3,328,862 Total Capital Assets, Being Depreciated 852,718,372 1,562,035 (683,070) 4,468,586 858,065,923 Less accumulated depreciation: Right-to-use land - 35,704 - - 35,704 Building improvements 80,299,785 7,861,506 - - 88,161,291 Improvement other than buildings 21,119,423 1,932,760 - - 23,052,183 Equipment and vehicles 47,044,748 3,155,349 (676,741) - 49,523,356 Furniture and fixtures 3,423,389 79,301 - - 3,502,690 Infrastructure 250,952,755 8,445,429 (6,329) - 259,391,855 Intangible 3,115,660 204,274 - - 3,319,934 Total Accumulated Depreciation 405,955,760 21,714,323 (683,070) - 426,987,013 Total Capital Assets, Being Depreciated, Net 446,762,612 (20,152,288) - 4,468,586 431,078,910 Governmental Activities Capital Assets, Net $ 802,329,668 $ 817,669 $ (2,587,917) $ - $ 800,559,420 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government $ 377,911 Public safety - police 613,636 Public safety -fire protection 3,864,622 Engineering and public works 10,193,615 Community development 67,210 Community services 4,966,605 Internal service 1,630,724 Total Governmental Activities $ 21,714,323 67 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 6: Capital Assets (Continued) Business-type activities capital assets for the year ended June 30, 2022, was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Business-Tvne Activities: Capital assets, not being depreciated: Land $ 5,451,015 $ - $ - $ - $ 5,451,015 Construction-in-progress 3,407,085 734,614 - (2,900,265) 1,241,434 Total Capital Assets, Not Being Depreciated 8,858,100 734,614 - (2,900,265) 6,692,449 Capital assets, being depreciated: Building improvements 17,225,973 - - - 17,225,973 Improvement other than buildings 6,368,130 - - - 6,368,130 Equipment and vehicles 702,151 - - - 702,151 Furniture and fixtures 6,004 - - - 6,004 Infrastructure 39,518,385 2,270,155 - 2,900,265 44,688,805 Intangible 25,858 - - - 25,858 Total Capital Assets, Being Depreciated 63,846,501 2,270,155 - 2,900,265 69,016,921 Less accumulated depreciation: Building improvements 12,063,644 431,198 - - 12,494,842 Improvement other than buildings 4,263,944 128,834 - - 4,392,778 Equipment and vehicles 566,556 17,436 - - 583,992 Furniture and fixtures 6,004 - - - 6,004 Infrastructure 13,892,107 1,561,584 - - 15,453,691 Intangible 25,858 - - - 25,858 Total Accumulated Depreciation 30,818,113 2,139,052 - - 32,957,165 Total Capital Assets, Being Depreciated, Net 33,028,388 131,103 - 2,900,265 36,059,756 Business-Type Activities Capital Assets, Net $ 41,886,488 $ 865,717 $ - $ - $ 42,752,205 Depreciation expense was charged to funds of the business-type activities as follows: Business-Type Activities: Sports Complex $ 560,032 Municipal Utility 1,341,460 Fiber Optic Network 237,560 Total Business-Type Activities $ 2,139,052 68 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 7: Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2022, was as follows: Due To/From Other Funds Due to other funds Other Lighting Federal Governmental Funds Districts Grants Fund Funds Total Due from other funds: General Fund $ 105,873 $ 21,219 $ 7,995,683 $ 8,122,775 Due to/from other funds were the results of routine interfund transactions not cleared prior to the end of the fiscal year or to cover negative cash balances at June 30, 2022. Advances To/From Other Funds Advances to Other Funds Lighting Fire Fiber Optic Sports Funds Districts District Network Complex Total Advance from other funds: General Fund $ 8,285,030 $ 495,714 $12,001,791 $ 1,597,064 $22,379,599 On August 16, 2017, the City Council authorized an advance of $14,400,340 from the General Fund to the Lighting Districts Fund to provide funding for the purchase and acquisition of Southern California Edison owned streetlights and the installation of LED lighting to streetlights, intersections, and bridges, and other one-time costs necessary to inventory the streetlights. The advance was completed in phases and bears interest at 1.0% on the outstanding balance. The advance is to be repaid to the General Fund at such time as funds are available by each street lighting district at the end of each fiscal year.At June 30, 2022, the outstanding balance amounted to$8,285,030. On June 21, 2012, the General Fund advanced $4,556,198 to the Fire District to provide funding for the prepayment of the Fire District's side fund liability with CalPERS. The advance bears interest at 4.5% and is payable in monthly installments. The final payment will occur in October 2023. At June 30, 2022, the outstanding balance amounted to$495,714. On June 16, 2022, the General Fund advanced $12,001,791 to the Fiber Optic Network Fund to provide funding for the repayment of the 2019 lease Revenue Bonds Series A and Series B. The advance will be repaid from service revenues derived from broadband subscriptions over a 17-years period. Any outstanding amount will be converted to a rollover period to allow for an additional 10 years of repayment. The advance accrues interest equal to the quarterly LAIF rate. The entire amount will be due and payable to the General Fund at the end of the rollover period in June 2049. On September 2, 2015, the General Fund advanced $3,215,612 to the Sports Complex to provide funding for the installation of a solar photovoltaic system at the Epicenter.The advance bears interest at 1.0% and is payable in monthly installments. The final payment will occur in February 2035. At June 30, 2022, the outstanding balance amounted to $1,597,064. 69 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 7: Interfund Receivable, Payable and Transfers (Continued) Interfund Transfers Transfers Out General Fire Federal Grants Municipal Nonmajor Funds Fund District Fund Utility Governmental Total Transfers In General Fund $ - $ $ 27,484,512 $1,457,300 $ 676,047 $29,617,859 Lighting Districts 118,712 - 26,450 145,162 Fire District - 14,591 - 14,591 Fiber Optic Network 937,291 - 937,291 Internal Service Funds 5,730,184 105,466 - 5,835,650 Nonmajor Governmental 408,594 - 56,860 465,454 Nonmajor Enterprise 1,581,226 1,581,226 $8,776,007 $105,466 $ 27,499,103 $1,457,300 $ 759,357 $38,597,233 The General Fund transferred$118,712,$937,291,$5,730,184,$408,594 and$1,581,226 to the Lighting Districts Fund, Fiber Optic Network Fund, Internal Service Funds, Nonmajor Governmental Funds, and Nonmajor Enterprise Funds, respectively, to cover the costs of operations. The Fire District Fund transferred $105,466 to the Internal Service Funds to cover the cost of operations. The Federal Grants Fund transferred $27,848,512 and $14,591 to the General Fund and Fire District respectively to reimburse for eligible expenditures of Federal grant programs. The Municipal Utility transferred $1,457,300 to the General Fund to cover the cost of operations. The Nonmajor Governmental Funds transferred$676,047, $26,450 and$56,680 to the General Fund, Lighting Districts and other Nonmajor Governmental Funds, respectively, to cover budgeted expenditures for operations. Note 8: Long-Term Debt Obligations a. Long-Term Debt-Governmental Activities The following is a schedule of changes in governmental activities long-term debt for the fiscal year ended June 30, 2022: Beginning Ending Due Within Balance Additions Repayments Balance One Year Financed Purchase Dell Blade Servers $ 995,689 $ - $ 488,349 $ 507,340 $ 507,340 Lease Liability(Note 5) Land Lease- Chaffey Joint USD - 226,662 38,169 188,493 36,792 Total $ 995,689 $ 226,662 $ 526,518 $ 695,833 $ 544,132 70 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 8: Long-Term Debt Obligations (Continued) Financed Purchase Dell Blade Servers On December 5, 2018, the City entered into financed purchase agreements with Dell Financial Services to finance the acquisition of hardware equipment and software for the replacement of the City's data center infrastructure. The total cost of the equipment and related software acquired amounts to $2,446,503. The agreement requires annual payments of$527,330 with an interest component of 4.715% per annum due February 1st of each year with the final payment due February 2023. The future minimum financed obligations and the net present value of these minimum lease payments as of June 30, 2022 are as follows: Year Ended Annual June 30, Payment 2023 $ 527,330 Total Payments 527,330 Interest Portion (19,990) Present value of payments $ 507,340 b. Long-Term Debt— Business-Type Activities The following is a schedule of changes in business-type activities long-term debt for the fiscal year ended June 30, 2022: Beginning Ending Due Within Balance Addtions Repayments Balance One Year Lease Revenue Bonds 2019 Series A $ 9,875,000 $ $ 9,875,000 $ $ 2019 Series A 1,585,000 1,585,000 - Unamortized premuim/(discount) 1,227,378 1,227,378 - Total $12,687,378 $ $ 12,687,378 $ $ 2019 Lease Revenue Bonds On January 30, 2019, the Financing Authority issued the 2019 Lease Revenue Bonds Series A(tax-exempt)in the amount of$9,875,000 and 2019 Lease Revenue Bonds Series B(taxable)in the amount of$2,320,000 to finance the acquisition, design,construction and equipment of an expansion to the City's existing fiber optic network pursuant to a lease agreement between the City and the Financing Authority. Series A Bonds were issued with a premium of$1,371,795 and Series B Bonds were issued with a discount of$10,857. The Series A and B Bonds mature annually on May 1st, with Series A beginning in 2025 and through 2039 and Series B beginning in 2020 and through 2025. Interest on the Series A and B Bonds is paid on May 1st and November 1st of each year, commencing November 1, 2019 with interest ranging from 2.85%to 5.00%. 71 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 8: Long-Term Debt Obligations (Continued) The Series A Bonds maturing on or before May 1, 2019 are not subject to redemption prior to their maturities, while the Series A Bonds maturing on or after May 1, 2030 are subject to optional redemption at the option of the Financing Authority as a whole or in part, on any date on or after May 1, 2019, at a redemption price equal to the principal amount of the Bonds. The Series B Bonds are not subject to optional redemption. On June 28, 2022, the City with the Public Financing Authority defeased the 2019 Lease Revenue Bonds Series A and Series B by depositing into an Escrow Fund the total amount of $12,001,795. The amount was used to purchase certain permitted securities, the aggregate principal amount together with all interest earned on such securities will be sufficient to make the payments required on the 2019 lease Revenue bonds Series A and Series B as they become due.As of June 30,2022,the 2019 Lease Revenue Bonds Series A and Series B is defeased. By accelerating principal and interest payments on the debt, the City will save approximately $1.9 million in future interest payments with the optional prepayment of the 2019 Lease Revenue Bonds. Note 9: Advances from the Successor Agency During the formation of Community Facilities District CFD 2000-01 (CFD 2000-01), a number of meetings were held with property owners within the proposed boundaries to discuss participation in CFD 2000-01 and benefits to their property. As a result of those meetings, the approved boundary map was modified at the landowners' request to exclude certain properties from the CFD 2000-01 boundaries. Property owners that were excluded from CFD 2000-01 boundaries, but will be receiving direct benefit from the improvements constructed by CFD 2001-01, were advised that reimbursement would be required when their properties are developed. The Redevelopment Agency advanced the pro-rata share for properties that will receive benefit from the improvements, but are not participating in CFD 2000-01. At June 30, 2022, the outstanding amount of the advance was $3,953,624. Note 10: Compensated Absences The City's policies relating to compensated absences are described in Note 1. The liability will be paid in future years by the General Fund and the Fire District Fund as it becomes due. Balance Balance Due in June 30, 2021 Addtions Deletions June 30, 2022 One Year Governmental Activities: Compensated absences $ 8,617,777 $ 6,573,063 $ 6,561,870 $ 8,628,970 $ 6,572,000 72 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 11: Other Special Obligations The following issues of Residential Mortgage Revenue Bonds, Special Assessment District Bonds, and Community Facility District Bonds are not reflected in the Statement of Net Position because these are special obligations payable solely from and secured by specific revenue sources described in the resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the State of California or any political subdivision thereof, is pledged for the payment of these bonds. The outstanding amounts at June 30, 2022, were as follows: Outstanding Amount at June 30, 2022 City of Rancho Cucamonga: Special Tax Refunding Bond, Series 2015: Community Facilities District No. 2000-01 $ 196,000 Community Facilities District No. 2000-02 1,923,000 Community Facilities District No. 2001-01 Series A 5,010,000 Community Facilities District No. 2001-01 Series B 485,000 Community Facilities District No. 2006-01 2,983,000 Community Facilities District No. 2006-02 1,772,000 Community Facilities District No. 2000-03 5,433,000 Community Facilities District No. 2003-01 Series A 11,150,000 Community Facilities District No. 2003-01 Series B 2,153,000 Community Facilities District No. 2004-01 25,946,000 Successor Agency of the Former Rancho Cucamonga Redevelopment Agency: Multi-Family Housing Revenue Bond: Series 1997A 1,312,940 Total $ 58,363,940 Note 12: Pension Plan Obligations Deferred Pension Net Pension Net Pension Pension Deferred Expense Liability Asset Outflows Pension Inflows (Revenue) CalPERS City Miscellaneous Plan $ (26,008,806) $ - $ 7,653,610 $ (22,703,126) $ 245,289 Fire District Miscellaneous Plan (1,809,262) - 658,801 (1,655,330) 739,562 Fire District Safety Plan (19,569,265) - 15,020,281 (13,736,766) 38,765 Total CalPERS (47,387,333) - 23,332,692 (38,095,222) 1,023,616 PARS(see Note 13) - 9,657,127 1,015,673 (5,987,376) (1,139,389) Total Pension Plans $ (47,387,333) $ 9,657,127 $ 24,348,365 $ (44,082,598) $ (115,773) 73 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) a. City Miscellaneous Employee Pension Plan Plan Description The City of Rancho Cucamonga contributes to the California Public Employees Retirement System(PERS),an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS' annual financial report may be obtained on the CaIPERS' website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of 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 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. Miscellaneous Plan Tier I Tier 2" Tier 3 PEPRA On or after Hire date Prior to or on September 1, 2010 July 4, 2011 On or after September 1, 2010 but prior to July 3, and after January 1, 2013 2011 Benefit formula 2.5% @ 55 2.5% @ 55 2.0% @ 55 2.0% @ 62 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 minimum 50 yrs minimum 50 yrs minimum 50 yrs minimum 52 yrs 2.000% -2.500% 2.000%-2.500%, 1.426% -2.418%, 1.000%- 2.500%, Monthly benefits, as a% of 50 yrs-55+yrs, eligible compensation respectively 50 yrs- 55+yrs, 50 yrs-63+yrs, 52 yrs- 67+ yrs, respectively respectively respectively Required employee contribution rates 8.000% 8.000% 7.000% 6.500% Required employer contribution rates 26.967% 26.967% 26.967% 26.967% * Plan is closed to new entrants 74 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) Employees Covered As of June 30, 2021, the following employees were covered by the benefit terms of the Plan: Number of Members Description City Miscellaneous Plan Active members 417 Transferred members 242 Separated members 369 Retired members and beneficiaries 377 Total 1,405 Contribution Description Section 20814(c)of the California Public Employees' Retirement Law(PERL)requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CaIPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year,with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. For the year ended June 30, 2022, the employer contributions recognized as a reduction to net pension liability for the Plan were$6,250,129. Net Pension Liability The net pension liability is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. 75 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on the following actuarial methods and assumptions: Valuation Date June 30, 2020 Measurement Date June 30, 2021 Actuarial Cost Method Entry Age Normal Cost Method Actuarial Assumptions Discount Rate 7.15% Inflation 2.50% Projected Salary Increases Varies by Entry Age and Service Mortality Rate Table (1) Derived using CaIPERS' Membership Data for all Funds Post Retirement Benefit Contract COLA up to 2.50% until Purchasing Power Increase Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter (1) The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. 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 of 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 followed: 76 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) Assumed Asset Real Return Real Return Asset Class(1) Allocation Years 1 - 10(2) 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 Estate 13.00% 3.75% 4.93% Liquidity 1.00% 0.00% -0.92% Total 100.00% (1) In the System's ACFR, 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. (2) An expected inflation of 2.0%used for this period. (3) An expected inflation of 2.92%used for this period. Discount Rate The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at 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. Subsequent Events On July 12, 2021, CaIPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021. On November 17, 2021,the board adopted a new strategic asset allocation.The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date. 77 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) Changes in the Net Pension Liability The following table shows the changes in net pension liability recognized over the measurement period for the City Miscellaneous Plan. Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Assets) (a) (b) (c)=(a)-(b) Balance at: 6/30/2020(Valuation Date) $ 247,420,475 $191,094,703 $ 56,325,772 Changes Recognized for the Measurement Period: Service Cost 4,313,387 - 4,313,387 Interest on the Total Pension Liability 17,333,452 - 17,333,452 Changes of Benefit Terms - - - Changes of Assumptions - - - Difference between Expected and Actual Experience (1,220,230) - (1,220,230) Net Plan to Plan Resource Movement - - - Contribution from the Employer - 6,250,129 (6,250,129) Contributions from Employees - 1,921,495 (1,921,495) Net Investment Income - 42,762,843 (42,762,843) Benefit Payments including Refunds of Employee Contributions (11,862,100) (11,862,100) - Administrative Expense - (190,892) 190,892 Net Changes During 2020-21 8,564,509 38,881,475 (30,316,966) Balance at: 6/30/2021 (Measurement Date) $ 255,984,984 $229,976,178 $ 26,008,806 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan's as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher(8.15 percent)than the current rate: Discount Rate- 1% Current Discount Rate Discount Rate+1% (6.15%) (7.15%) (8.15%) Plan's Net Pension Liability/(Assets) $ 60,535,307 $ 26,008,806 $ (2,431,994) Pension Plan Fiduciary Net Position The plan fiduciary net position disclosed in the GASB Statement No. 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 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. Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information. 78 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2020), the net pension liability was $56,325,772. For the measurement period ending June 30, 2021 (the measurement date), the City incurred a pension expense of$245,289 for the Plan. As of June 30, 2022, the following were the reported deferred outflows of resources and deferred inflows of resources related to the pension plan: Miscellaneous Pension Plan Deferred Outflows of Deferred Inflows of Resources Resources Current year contributions that occurred after the measurement date of June 30, 2021 $ 6,734,618 $ - Changes of assumptions - (136,001) Difference between expected and actual experience 918,992 (1,480,062) Net Difference between Projected and Actual Earnings on Pension Plan Investments - (21,087,063) Total $ 7,653,610 $ (22,703,126) Contributions subsequent to the measurement date in the amount of $6,734,618 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Net Deferred Period ended Outflows/(Inflows) of June 30: Resources 2022 $ (5,306,560) 2023 (5,393,368) 2024 (5,232,818) 2025 (5,851,388) $ (21,784,134) 79 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) b. Fire District Miscellaneous and Safety Employee Pension Plans Plan Description All qualified permanent and probationary Fire District's employees are eligible to participate in the Safety Employee Pension Plan or Miscellaneous Employee Pension Plan, both cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of PERS' annual financial report may be obtained from its executive office at 400 P Street, Sacramento, California 95814. 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 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. Fire District Miscellaneous Cost-Sharing Plans Tier 1 * Tier 2* PEPRA Prior to July 9, 2011 January 1, 2013 Hire date July 9, 2011 but prior to and after January 1, 2013 Benefit formula 2.5% @ 55 2.0% @ 55 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs Monthly benefits, as a % of eligible 2.000% - 2.500%, 1.426% - 2.418%, 1.000% - 2.500%, compensation 50 yrs- 55+ yrs, 50 yrs- 63+ yrs, 52 yrs- 67+ yrs, respectively respectively respectively Required employee contribution rates 8.000% 7.000% 6.750% Required employer contribution rates 69.350% 11.330% 7.930% 80 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) Fire District Safety Cost-Sharing Plans Tier 1 * Tier 2* PEPRA Prior to July 9, 2011 January 1, 2013 Hire date but prior to July 9, 2011 and after January 1, 2013 Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 50 yrs Monthly benefits, as a% of eligible 3.000%, 50+ yrs 2.400% - 3.000%, 2.000% - 2.700%, compensation 50 yrs- 55+ yrs, 50 yrs- 57+ yrs, respectively respectively Required employee contribution rates 9.000% 9.000% 13.000% Required employer contribution rates 23.710% 20.640% 13.130% *Plan is closed to new entrants Employees Covered As of the valuation date of June 30, 2020, the following employees were covered by the benefit terms of the Plans: Number of Members Fire Miscellaneous Description Plan Fire Safety Plan Active members 23 98 Transferred members 7 11 Separated members 11 3 Retired members and beneficiaries 27 82 Total 68 194 Contribution Description 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 the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plans' 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. For the year ended June 30, 2022, the employer contributions recognized as a reduction to net pension liability was $372,168 for the Miscellaneous Plan and $10,065,699 for the Safety Plan for a total of$10,437,867 for the plans. 81 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) Net Pension Liability The net pension liability is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on the following actuarial methods and assumptions: Valuation Date June 30, 2020 Measurement Date June 30, 2021 Actuarial Cost Method Entry Age Normal Cost Method Actuarial Assumptions Discount Rate 7.15% Inflation 2.50% Projected Salary Increases Varies by Entry Age and Service Mortality Rate Table (1) Derived using CaIPERS' Membership Data for all Funds Post Retirement Benefit Contract COLA up to 2.50% until Purchasing Power Increase Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter (1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. 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 of 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 followed: 82 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) Assume Asset Real Return Real Return Asset Class (1) Allocation Years 1 - 10 (2) Years 11+ (3) Public 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 Estate 13.00% 3.75% 4.93% Liquidity 1.00% 0.00% -0.92% Total 100.00% (1) In the System's ACFR, 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. (2) An expected inflation of 2.0%used for this period. (3) An expected inflation of 2.92%used for this period. Discount Rate The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at 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 Liabilities,Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2022, the Fire District reported a net pension liability of$1,809,262 for its proportionate shares of the Miscellaneous Plan and $19,569,265 for its proportionate shares of the Safety Plan for a total of$21,378,527 for the cost-sharing plans. The Fire District's net pension liability for each rate Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the rate Plans is measured as of June 30, 2021, and the total pension liability for each rate Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, using standard update procedures. The Fire District's proportion of the net pension liability was based on a projection of the Fire District's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The Fire District's proportionate share of the net pension liability for each rate Plan as of June 30, 2020 and 2021, was as follows: Miscellaneous Fire Plan Safety Plan Proportion - June 30, 2020 0.0730% 0.6273% Proportion - June 30, 2021 0.0953% 0.5576% Changes - Increase (Decrease) 0.0223% -0.0697% 83 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) For the year ended June 30, 2022, the Fire District recognized pension expense of $739,562 and $38,765 for the Miscellaneous Plan and the Safety Plan, respectively. As of June 30, 2022, the following were the reported deferred outflows of resources and deferred inflows of resources related to the pension plans: Miscellaneous Safety Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Current year contributions that occurred after the measurement date of June 30,2021 $ 406,745 $ $ 9,113,770 $ Change of assumptions - 3,343,392 Difference between expected and actual experience 202,889 - Net difference between projected and actual earnings on pension plan investments - 1,579,390 - 11,647,475 Adjustment due to difference in proportions 49,167 3,955 729,860 1,471,671 Difference in actual contribution and proportionate share of contribution calculation - 71,985 1,833,259 617,620 Total $ 658,801 $ 1,655,330 $ 15,020,281 $ 13,736,766 The Miscellaneous Plan reported $406,745 and the Safety Plan reported $9,113,770 as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Net Deferred Outflows/ Measurement Period (Inflows) of Resources Ended June 30, Miscellaneous Plan Safety Plan 2023 $ (291,803) $ (967,490) 2024 (316,347) (1,421,903) 2025 (358,662) (2,235,639) 2026 (436,462) (3,205,223) Total $ (1,403,274) $ (7,830,255) 84 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 12: Pension Plan Obligations (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan's as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher(8.15 percent)than the current rate: Discount Rate Current Discount Discount Rate Net pension Liability 6.15% 7.15% 8.15% Fire District Miscellaneous Plan $ 3,455,672 $ 1,809,262 $ 448,198 Fire District Safety Plan 41,234,862 19,569,265 1,773,654 Pension Plan Fiduciary Net Position The plan fiduciary net position disclosed in the GASB Statement No. 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 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. Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information. Note 13: PARS Retirement Enhancement Plan 1. General Information About the Plan Plan Description The City of Rancho Cucamonga sponsors the PARS Retirement Enhancement Plan, an agent multiple-employer defined benefit pension plan. The Plan provides pension benefits to miscellaneous members (Tier 1) and city council members (Tier 2). Benefits are equal to a percentage of highest pay multiplied by years of service, with the percentage varying by retirement age based on the total combined CalPERS age factor, but not exceeding 3% at 60. Sample rates are as follows: Age Tier 1 and Tier 2 55 0.000% 56 0.100 57 0.200 58 0.300 59 0.400 60+ 0.500 The City and the Fire District have the right to amend, modify or terminate the plan at any time. Separate audited financial statements are not prepared. Benefits are increased by a 2%annual cost of living adjustment after retirement. There are no employee contributions for either tier. 85 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 13: PARS Retirement Enhancement Plan (Continued) Benefits Provided PARS provides supplemental retirement benefits to eligible employees of the City. Employees are eligible to receive benefits under the plan if they meet the following requirements: 1) a miscellaneous employee of the City or City Council on or after December 1, 2002, 2) at least 56 years of age, 3) has completed 10 or more years of full-time continuous employment at the City, 4) has terminated employment with the City and has concurrently retired under CalPERS if an active CalPERS member, and 5) has applied for benefits under the plan. Benefits shall be in an amount equal to one-twelfth of the product of the number of full and partial years of full-time continuous employment with the City completed as of the Member's retirement times the Member's final pay, times the PARS benefit factor. The total combined CalPERS age factor and PARS benefit factor at retirement may not exceed three percent. PARS Retirement Enhancement Plan* Hire date on or after December 1, 2002 Benefit formula one-twelfth of the product of the number of full and partial years of full-time continuous employment with the City completed as of the Member's retirement times the Member's final pay, times the PARS benefit factor Benefit vesting schedule 10 years service Benefit payments monthly for life Retirement age minimum 56 yrs Monthly benefits, as a% of N/A- not based on % of eligible compensation eliqible compensation Required employee contribution rates 0.000% Required employer contribution rates 4.400% This plan is closed to new entrants Employees Covered As of the measurement date of June 30, 2021, the following employees were covered by the benefit terms of the Plan: Number of Description Members Active employees 158 Inactives currently receiving benefits 147 Total 305 Contribution Description The total plan contributions are determined through the PARS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year,with an additional amount to finance any unfunded accrued liability. Due to the City's pre-funding of its pension liability with PARS, the City's Plan had a net pension asset as of the June 30, 2021, actuarial valuation which positively impacted the actuarially determined rate. For the year ended June 30, 2022, the employer contributions recognized as a decrease to the pension liability were $563,099. 86 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 13: PARS Retirement Enhancement Plan (Continued) 2. Net Pension Asset The net pension asset for the Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021 using an annual actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2021 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Valuation Date June 30, 2020 Actuarial Cost Method Entry Age Normal Cost Method Actuarial Assumptions Discount Rate 6.00% Inflation 2.75% annually Salary Increases Aggregate- 3.00% Investment Rate of Return 6.00% net of pension investment and administrative expenses, including inflation Mortality Rate Table CalPERS 1997-2015 Experience Study Post Retirement Benefit Post-retirement mortality projected fully Increase generational with Society of Actuaries Scale MP-2020 Discount Rate The discount rate used to measure the total pension liability was 6.00%. The expected long-term rate of return on investments was updated from 5.75% to 6.00%. Future contributions based on the funding policy will be made at contractually required rates, actuarily determined. Based on these assumptions,the fiduciary net position was projected to be available to make all projected future benefit payments. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.These geometric rates of return are net of administrative expenses. Target Asset Class Allocation Real Return Global Equity 48.25% 4.82% Fixed I ncome 45.00% 1.47% REITs 1.75% 3.76% Cash 5.00% 0.06% 87 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 13: PARS Retirement Enhancement Plan (Continued) Changes in the Net Pension Asset The following table shows the changes in net pension asset recognized over the measurement period. Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability(Asset) (a) (b) (c)=(a)-(b) Balance at: June 30, 2020(measurement date) $ 30,084,466 $ 33,961,221 $ (3,876,755) Changes Recognized for the Measurement Period: Service Cost 561,042 - 561,042 Interest on the Total Pension Liability 1,803,717 - 1,803,717 Changes of Benefit Terms - - - Difference between Expected and Actual Experience - - - Changes of Assumptions - - - Contributions from the Employer - 563,099 (563,099) Contributions from Employees - -Net Investment Income - 7,631,818 (7,631,818) Benefit Payments including Refunds of Employee Contributions (1,167,119) (1,167,119) - Administrative Expenses - (49,786) 49,786 Net Changes During 2020/21 1,197,640 6,978,012 (5,780,372) Balance at: June 30, 2021 (measurement date) $ 31,282,106 $ 40,939,233 $ (9,657,127) Sensitivity of the Net Pension Asset to Changes in the Discount Rate The following presents the net pension asset of the Plan as of the measurement date, calculated using the discount rate of 6.00 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.00 percent) or 1 percentage-point higher(7.00 percent)than the current rate: Discount Rate- 1% Current Discount Discount Rate+1% (5.00%) Rate (6.00%) (7.00%) Plan's Net Pension Liability(Assets) $ (5,307,436) $ (9,657,127) $ (13,254,825) 3. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period, July 1, 2020, the net pension asset was $3,876,755. For the measurement period ending June 30, 2021, the measurement date, the City incurred a pension income of$1,139,389 for the Plan. 88 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 13: PARS Retirement Enhancement Plan (Continued) As of June 30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows Deferred Inflows of of Resources Resources Current year contributions that occurred after the measurement date of June 30, 2021 $ 547,799 $ - Difference between Expected and Actual Experiences - 1,519,182 Change of Assumption 467,874 490,642 Net Difference between Projected and Actual Earnings on Pension Plan Investments - 3,977,552 Total $ 1,015,673 $ 5,987,376 $547,799 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Deferred Period ended Outflowst(Inflows) of June 30: Resources 2023 $ (1,281,244) 2024 (1,327,119) 2025 (1,515,000) 2026 (1,356,883) 2027 (39,256) Total $ (5,519,502) Note 14: Other Post-Employment Benefits Plan Description The City does not provide post-employment benefits; however, medical coverage is provided to Fire District personnel and their dependents upon retirement under the Rancho Cucamonga Fire Protection District Memorandum of Understanding. The Fire District provides other post-employment benefits (OPEB) through the California Employers' Retiree Benefit Trust(CERBT), an agent multiple-employer defined benefit healthcare plan administered by the California Public Employees' Retirement System (CaIPERS). For Tier 1 employees, the Fire District pays 100% of the medical insurance premium for the participant and their family. For Tier 2 employees, the Fire District contributes a predetermined monthly maximum for each eligible retiree towards health insurance. These benefits are provided per contract between the Fire District and the employee associations. Separate financial statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North 400 Q Street, Sacramento,California 95814 or by visiting the CalPERS website at www.calpers.ca.gov. 89 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 14: Other Post-Employment Benefits (Continued) Employees Covered As of the June 30, 2021, measurement date, the following current and former employees were covered by the benefit terms under the Plan: Number of Description Members Active employees 120 Inactives currently receiving benefits 78 Inactives entitled to but not yet receiving benefits 7 Total 205 Funding Policy The contribution requirement of plan members and the Fire District are established and may be amended by the City Council. Currently, contributions are not required from plan members. Contributions to the Plan include all amounts paid by the City directly to the Plan,cash benefit payments made directly to plan members,and an implied subsidy payment as determined by the June 30, 2021, actuarial valuation. These contributions are netted against the reimbursements received from the CERBT. During the June 30, 2021, measurement period, the City paid $1,047,840 in premiums for retiree medical insurance and was reimbursed $1,265,174, and the implied subsidy was $264,000, for a total contribution of$46,665. Net OPEB Asset The City's net OPEB asset was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation dated June 30, 2021 based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Actuarial Assumptions: Discount Rate 5.25%at June 30, 2021 Inflation 2.50% Salary Increases Aggregate-2.75%annually Merit- CalPERS 2000-2019 experience study Mortality, Retirement, CalPERS 2000-2019 Experience Study Disability, Termination Mortality Improvement Mortality projected fully generational with Scale MP-2021 Healthcare Trend Rate Non-Medicare-6.50%for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare(Non-Kaiser)-5.65%for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare(Kaiser)-4.60%for 2023, decreasing to an ultimate rate of 3.75% in 2076 Other Assumptions PEMHCA minimum Increases of 4.00%annually Healthcare participation for future retirees: 100%for Tier 1 75%for Tier 2 if currently covered, otherwise 50% 90 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 14: Other Post-Employment Benefits (Continued) The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation)are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table for the CERBT Strategy 3. CalPERS approved new CERBT asset allocations in March 2022. Estimated impact is an increase to the expected long-term rate of return assumption for CERBT Strategy 3 of 0.50%. Long-term Target Expected Real Asset Class Allocation Rate of Return Global Equity 22% 4.56% Fixed income 49% 0.78% TI PS 16% -0.08% Commodities 5% 1.22% REITs 8% 4.06% Discount Rate The discount rate used to measure the total OPEB liability was 5.25 percent.The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Changes in Assumptions For the measurement date of June 30, 2021, the following changes of assumptions were made: • Discount rate was updated based on newer capital market assumptions. • Inflation assumption dropped from 2.75% to 2.50%. which dropped the discount rate, medical trend, and aggregate payroll increase by 0.25%. • Decreased medical trend rate for Kaiser Senior Advantage. • New rates from CaIPERS Experience Study. • Updated assumption for medical eligible implied subsidy. • Mortality improvement scale was updated to Scale MP-2021. 91 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 14: Other Post-Employment Benefits (Continued) Changes in the OPEB Liability/(Asset) The changes in the net OPEB liability/asset for the Plan are as follows: Increase(Decrease) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability/(Asset) (a) (b) (c)=(a)-(b) Balance at June 30, 2020 $ 26,138,324 $ 31,862,067 $ (5,723,743) Changes Recognized for the Measurement Period: Service Cost 351,997 - 351,997 Interest on the Total OPEB Liability 1,421,351 - 1,421,351 Difference between Expected and Annual Experience (107,488) - (107,488) Changes in Assumptions (729,439) - (729,439) Contributions from Employer - 32,589 (32,589) Net Investment Income - 4,356,510 (4,356,510) Benefit Payments (1,295,174) (1,295,174) - Administrative expenses - (13,863) 13,863 Net Changes During Fiscal Year 2020-21 (358,753) 3,080,062 (3,438,815) Balance at June 30, 2021 $ 25,779,571 $ 34,942,129 $ (9,162,558) Sensitivity of the Net OPEB Liability/(Asset)to Changes in the Discount Rate The following presents the net OPEB liability/asset of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021: Discount Rate 1% Decrease Current Rate 1% Increase (4.25%) (5.25%) (6.25%) Net OPEB Liability/(Asset) $ (5,797,809) $ (9,162,558) $ (11,943,582) Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability/(asset) of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021: Healthcare Trend Rate 1% Decrease to Healtcare Current 1% Increase to Trend Healtcare Trend Healtcare Trend Assumption Assumption Assumption Net OPEB Liability/(Asset) $ (12,036,980) $ (9,162,558) $ (5,690,246) 92 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 14: Other Post-Employment Benefits (Continued) OPEB Plan Fiduciary Net Position CERBT issues a publicly available financial report that includes financial statements and required supplementary information. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2022, the City recognized OPEB income of$1,261,623. As of June 30, 2022,the City reported deferred outflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources OPEB contributions subsequent to measurement date $ 15,729 $ - Differences between expected and actual experiences - 2,529,595 Changes of assumptions - 1,099,715 Net difference between projected and actual earnings on OPEB plan investments - 2,409,594 Total $ 15,729 $ 6,038,904 The $15,729 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as an increase of the net OPEB asset during the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows: Measurement Deferred Period Ended Outflows/(Inflows) June 30, of Resources 2022 $ (1,309,730) 2023 (1,352,485) 2024 (1,245,461) 2025 (1,193,870) 2026 (672,987) Thereafter (264,371) Total $ (6,038,904) 93 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 15: Summary Disclosure of Self-Insurance Contingencies The City and the Fire District are exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City and Fire District obtains insurance coverage. The City and the Fire District are a members of the California Intergovernmental Risk Authority (CIRA), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses,workers' compensation, and property claims. Under the program, the City and Fire District have a $500,000 retention limit for liability,which is similar to a deductible,with the Authority being responsible for losses above that amount up to $1,000,000. The Authority carries an excess commercial liability policy of $25,000,000 in excess of its $1,000,000 retention limit to cover losses through affiliated risk management authorities. The Authority also provides one billion dollars aggregate per occurrence property coverage to its members with such coverage provided by purchased insurance. Liabilities of the City and the Fire District are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries,for example from salvage or subrogation, are another component of the claims liability estimate. The City and Fire District have a $250,000 retention limit for workers compensation. The Authority covers workers' compensation claims in excess of the $250,000 retention limit up to $500,000. The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The City pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority's operating results. Effective July 1, 2015, the Fire District became a member of the Public Agency Risk Sharing Authority of California (Authority) for its workers compensation insurance and concurrently separated from the Public Agency Self-Insurance System (PASIS) of San Bernardino County. The Fire District will maintain reserves to cover its June 30, 2022, estimated claims liability for workers compensation up to its self-insured retention of $250,000. Claims in excess of the self-insured amount will be covered by California State Association of Counties- Excess Insurance Authority. All workers compensation coverage from July 1, 2015, forward will be provided by the Authority. Under the program, the Fire District has a $250,000 retention limit for workers compensation. The Authority covers workers compensation claims in excess of the $250,000 retention limit up to $5,000,000. The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The Fire District pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority's operating results. Financial statements of the Authority may be obtained from its administrative office located at 2330 East Bidwell, Suite 150, Folsom, California, 95630; www.cira-mpa.org; or by calling (916)927-7727. 94 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 15: Summary Disclosure of Self-Insurance Contingencies (Continued) The City and the Fire District are involved in litigation arising in the normal course of business. Although the legal responsibility and financial impact with respect to such litigation cannot be presently ascertained, based on information from the service agent and others involved with the administration of the programs, the City believes that the self-insurance commitment of $9,722,248 is adequate to cover such losses.The liability will be paid as it becomes due by the General Fund and the Fire District Fund. The following is a summary of the changes in the claims liability over the past two fiscal years for the City and the Fire District combined: Current Year Claims Fiscal Year Beginning and Changes in Claim Ending Due in Ended Balance Estimates Payments Balance One Year June 30, 2021 $2,720,826 $ 1,055,446 $(1,217,288) $2,558,984 $645,377 June 30, 2022 2,558,984 1,715,378 (1,145,966) 3,128,396 767,975 Note 16: Commitments and Contingencies The following schedule summarizes the major contractual commitments as of June 30, 2022: Expenditures to date as of Remaining Project Name Contract Amount June 30, 2022 Commitments Town Center Station $ 18,319,460 $ 2,729,346 $ 15,590,114 Fiber Optic Network 8,822,930 677,985 8,144,945 Etiwanda Grade Separation 12,500,000 7,482,075 5,017,925 Etiwanda from Arrow Whittram 5,005,400 7,730 4,997,670 Community Dog Park 4,383,880 820,325 3,563,555 95 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 17: Fund Balance Classifications Fund balances are presented in the following categories: nonspendable, restricted, committed, assigned, and unassigned (see Note 1 for a description of these categories). A detailed schedule of fund balances at June 30, 2022, is as follows: Special Revenue Funds Housing Other Development Lighting Successor Federal Governmental General Fund Impact Fees Districts Agency Fire District Grants Fund Funds Total Nonspendable: Prepaid costs $ 860,220 $ $ $ 1,498 $ 329,264 $ $ 15,539 $ 1,206,521 Deposits 72,000 - - - 72,000 Advances to other funds 22,379,599 22,379,599 Total Nonspendable 23,311,819 1,498 329,264 15,539 23,658,120 Restricted for: Capital improvement projects 2,282,607 - 17,840,505 34,381,258 54,504,370 Community development projects 201,158 139,672,398 - 2,465 2,805,420 142,681,441 Contractual obligations 1,029,133 - 119,146 - - 1,148,279 Engineering and public works - 58,441,782 - 28,865,639 87,307,421 General plan update 1,015,351 - - 1,015,351 Landscape maintenance - - 25,385,244 25,385,244 Library services 1,311,209 10,808,435 12,119,644 Parks and recreation 21,416,129 - 558,967 21,975,096 PERS rate stabilization 8,571,450 - 9,504,321 - 18,075,771 Public safety-Police - 1,181,877 - 1,741,328 2,923,205 Technology replacement 3,062,738 - 24,455 - 3,087,193 Underground utilities 11,253,331 11,253,331 Total Restricted 16,162,437 82,350,997 139,672,398 27,488,427 2,465 115,799,622 381,476,346 Committed to: Law enforcement 7,536,682 - - - - - 7,536,682 Vehicle and equipment replacement - 3,500,514 3,500,514 Working capital 5,376,647 23,538,148 28,914,795 City facilities capital repair 35,151,402 - 35,151,402 Changes in economic circumstances 27,006,176 10,150,002 37,156,178 Employee leave payouts 4,039,761 4,726,268 8,766,029 Self-insurance 9,722,248 - 9,722,248 Economic development strategic reserve 7,884,078 7,884,078 Seasonal weather emergency reserve 310,000 - 310,000 PASIS worker's compensation tail claims - 344,088 344,088 Community benefit projects 4,935,816 - 4,935,816 Public safety personnel affordable housing - 192,600 192,600 Fire District facilities capital repair 3,708,284 3,708,284 Total Committed 101,962,810 46,159,904 148,122,714 Assigned to: Radio system acquisition 550,697 3,005,044 3,555,741 Capital infrastructure projects 22,295,492 - 22,295,492 Economic development special projects 3,101,008 3,101,008 Animal Center operations 1,500,354 1,500,354 Mobile home park program 197,717 - 197,717 Continuing operations 170,855 205,120 375,975 Community services programs 2,258,443 - 2,258,443 Harrowand Epicenter master plan 500,000 - 500,000 Capital projects - 16,453,414 16,453,414 Sphere of influence 1,108,604 1,108,604 Total Assigned 31,683,170 19,663,578 51,346,748 Unassigned (4,219,819) (264,890) (264,890) Totals $173,12 2236 $82, 550,997 $ (4,219,819) $139,673,896 $93,641,173 $ 2,465 $115, 550 271 $604, 339,038 96 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Rancho Cucamonga that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 11, 2012, the City elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12-001. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. 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. a. Cash and investments Cash and investments reported in the accompanying financial statements consisted of the following: Cash and investments $ 22,745,691 Cash and investments with fiscal agent 43 $ 22,745,734 97 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency(Continued) b. Loans Receivable Notes and loans receivables consist of the following at June 30, 2022: On July 21, 2003, the Agency entered into a Disposition and Developer Agreement with Victoria Gardens, LLC. The Agency conveyed 147 acres generally located north of Foothill Boulevard, west of the 1-15 Freeway and east of Day Creek Road in the City of Rancho Cucamonga in order for the Developer to construct an open air mixed use complex. The Agency conveyed the site to the Developer upon the execution of a promissory note to pay a cumulative sum of $13,000,000 to the Agency over a term of thirty (30) years. The note stipulates the following payment structure: (1) the Developer shall make annual payments to the Agency equal to the amount required to amortize the excess return at the Agency's cost of funds; (2)the Developer shall pay the Agency fifteen percent(15%)of the difference between the net sale proceeds and the higher of the project cost, or the initial gross proceeds of any loan; and (3)the Developer shall pay the Agency fifteen percent (15%) of any positive net refinance proceeds. As of June 30, 2022, the outstanding balance was $10,259,967. c. Long-Term Debt A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2022, follows: Balance Balance Due Within July 1, 2021 Additions Repayments June 30, 2022 One Year Tax Allocation Bonds Tax Allocation Refunding Bonds -2007Issue $ 55,045,000 $ $ 2,855,000 $ 52,190,000 $ 3,040,000 Tax Allocation Refunding Bonds -2014Issue 132,455,000 8,320,000 124,135,000 8,735,000 Tax Allocation Refunding Bonds -2016Issue 49,960,000 - 1,800,000 48,160,000 1,870,000 Total Bonds 237,460,000 12,975,000 224,485,000 13,645,000 Developer Loans Bank of New York 5,568,981 - 931,041 4,637,940 1,014,580 Total Developer Loans 5,568,981 - 931,041 4,637,940 1,014,580 Total $ 243,028,981 $ - $ 13,906,041 229,122,940 $ 14,659,580 Unamortized Premium 20,045,596 Total $ 249,168,536 98 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency(Continued) Tax Allocation Bonds 1. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project, Housing Set-aside Tax Allocation Bonds, Tax Exempt Series 2007A and Taxable Series 2007B. $155,620,000. In November 2007, the Rancho Cucamonga Redevelopment Agency issued $73,305,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds Tax-Exempt Series 2007A and $82,315,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds Taxable series 2007B to (a) refund and redeem the Agency's outstanding Rancho Redevelopment Project 1996 Housing Set-Aside Tax Allocation Bonds, provide for the refunding and defeasance of the California Statewide Communities Development Authority Multifamily Housing Revenue Bonds, (c) extend set-aside and affordability restriction on 558 units within four apartment projects located in the City of Rancho Cucamonga pursuant to an Extended Affordability Agreement, and (d) finance other low and moderate income housing projects in or of benefit to the Project Area. The Series A issue consists of$29,950,000 in Serial bonds with maturities beginning September 1, 2008 through September 1, 2026, bearing interest ranging from 3.25%through 5.0%;and$43,355,000 in Term bonds due September 1,2034, bearing interest at 5%. The Series B issue consists of $19,675,000 Term bonds due September 1, 2018, bearing interest at 5.529%; and $62,640,000 Term bonds due September 1, 2031, bearing interest at 6.262%. Interest on both Series A and B bonds is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2008. The 2007 bonds are secured and payable from Tax Revenues on a subordinate basis with respect to a Loan Agreement dated as of December 15, 1997, between the Agency, Northtown Housing Development Corporation and Pacific Life Insurance Company (Loan Payable-Bank of New York) —the Senior Loan. The Indenture does not permit additional senior obligations. The Agency is permitted under the Indenture to incur additional obligations— Parity Bonds—secured by a pledge of Tax Revenues on a parity basis with the pledge of Tax Revenues to the 2007 Bonds. Tax Revenues which secure the 2007 Bonds consist solely of the Housing Set-Aside. On July 20, 2016, the Successor Agency issued Tax Allocation Refunding Bonds, Series 2016 to refund the Series A. The refunding resulted in the recognition of an accounting loss of$2,716,427. However, it reduced the total debt service payments by $14 million and an economic gain (the difference between the present values of the debt service payments on the old and new debt) of$11 million. The Taxable Series B Bonds are subject to optional redemption, on any date prior to their maturity. 99 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency(Continued) The balance at June 30, 2022, amounted to $52,190,000 plus unamortized bond premium of$204,961. The following schedule illustrates the debt service requirements to maturity for the 2007 Tax Allocation Refunding Bonds as of June 30, 2022: Year Ending June 30 Principal Interest 2023 $ 3,040,000 $ 3,172,955 2024 3,225,000 2,976,798 2025 3,430,000 2,768,430 2026 3,640,000 2,547,069 2027 3,870,000 2,311,930 2028-2032 34,985,000 4,577,365 Total $ 52,190,000 $ 18,354,547 If an Event of Default shall occur, then, and in each and every such case during the continuance of such Event of Default, the Trustee may, with the consent of the Insurer and if requested in writing by the Owners of a majority in aggregate principal amount of the Bonds then Outstanding or if directed by the Insurer,the Trustee shall(a)declare the principal of the Bonds, together with the accrued interest thereon, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything in the Indenture or in the Bonds to the contrary notwithstanding, and (b)subject to the provisions of the Indenture, exercise any other remedies available to the Trustee and the bond owners in law or at equity. 2. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project Area Tax Allocation Refunding Bonds, Series 2014. $174,050,000. These bonds are dated July 15, 2014, and were issued to refinance certain obligations of the Project Area including the 1999 Tax Allocation Refunding Bonds, 2001 Tax Allocation Bonds and 2004 Tax Allocation Bonds. The Bonds will be payable from and secured by, designated property tax revenues (formerly tax increment revenues) related to the Rancho Redevelopment Project, which will consist of moneys deposited, from time to time, in the Redevelopment Property Tax Trust Fund ("RPTTF")established under the Dissolution Act, defined below, but exclude those amounts which were, prior to the Dissolution Act, required to be deposited into the Former Agency's Low and Moderate Income Housing Fund to the extent required to pay debt service on existing Housing Obligations. Interest is payable semi-annually on March 1 and September 1, of each year commencing March 1, 2015. The bonds mature in annual installments ranging from $2,750,000 to $14,235,000 starting September 1, 2015, to September 1, 2032, and bear interest ranging from 3% to 5%. The balance at June 30, 2022, amounted to $124,135,000 plus unamortized bond premium of$14,827,715 and unamortized gain on defeasance of$1,394,667. 100 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency(Continued) The following schedule illustrates the debt service requirements to maturity for the 2014 Tax Allocation Refunding Bonds as of June 30, 2022: Year Ending June 30 Principal Interest 2023 $ 8,735,000 $ 5,988,375 2024 9,175,000 5,540,625 2025 9,635,000 5,070,375 2026 10,115,000 4,576,625 2027 10,620,000 4,058,250 2028-2032 61,620,000 11,561,750 2033 14,235,000 355,875 Total $124,135,000 $ 37,151,875 If an Event of Default has occurred and is continuing, the Trustee may (but only with the consent of the Insurer), and if requested in writing by the Owners of a majority in aggregate principal amount of the Bonds then Outstanding, the Trustee shall (but only with the consent of the Insurer), (a) declare the principal of the Bonds, together with the accrued interest thereon, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything in the Indenture or in the Bonds to the contrary notwithstanding, and (b) exercise any other remedies available to the Trustee and the bond owners in law or at equity. 3. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project Area Tax Allocation Refunding Bonds, Series 2016. $56,860,000. These bonds are dated October 5, 2016, and were issued to refinance certain obligations of the Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds 2007 Series A. The Bonds will be payable from and secured by, designated property tax revenues (formerly tax increment revenues) related to the Rancho Redevelopment Project, which will consist of moneys deposited, from time to time, in the Redevelopment Property Tax Trust Fund ("RPTTF")established under the Dissolution Act, but exclude those amounts which were, prior to the Dissolution Act, required to be deposited into the Former Agency's Low and Moderate Income Housing Fund to the extent required to pay debt service on existing Housing Obligations. Interest is payable semi-annually on March 1 and September 1, of each year commencing March 1, 2017. The bonds mature in annual installments ranging from $1,615,000 to $10,060,000 starting September 1, 2017, to September 1, 2034, and bear interest ranging from 2%to 5%. The balance at June 30, 2022, amounted to $48,160,000 plus unamortized bond premium of$5,012,919 and unamortized loss on defeasance of$1,940,606. 101 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency(Continued) The following schedule illustrates the debt service requirements to maturity for the 2016 Tax Allocation Refunding Bonds as of June 30, 2022: Year Ending June 30 Principal Interest 2023 $ 1,870,000 $ 1,983,050 2024 1,965,000 1,887,175 2025 2,060,000 1,786,550 2026 2,170,000 1,680,800 2027 2,275,000 1,569,675 2028-2032 8,780,000 7,388,400 2033-2035 29,040,000 1,772,600 Total $ 48,160,000 $ 18,068,250 If an Event of Default has occurred and is continuing, the Trustee may (but only with the consent of the Insurer), and if requested in writing by the Owners of a majority in aggregate principal amount of the Bonds then Outstanding the Trustee shall (but only with the consent of the Insurer), (a) declare the principal of the Bonds, together with the accrued interest thereon, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything in the Indenture or in the Bonds to the contrary notwithstanding, and (b) exercise any other remedies available to the Trustee and the bond owners on law or at equity. Developer Loans Payable On August 21, 1996, the Agency executed a note payable to Pacific Life Insurance Company (subsequently assigned to Bank of New York) in the amount of$9,411,477. The proceeds of the note were paid directly to Northtown Housing Development Corporation for the development of the Northtown Housing project. The outstanding principal bears interest at 8.78%compounding semi-annually from the date of the note until paid. Interest was added to the principal on each March 15 and September 15 through March 15, 2002, amounting to $4,210,264 in addition to principal. Commencing on September 15, 2002, both principal and interest shall be due and payable semi-annually on March 20 and September 20, of each year through March 2026. The balance at June 30, 2022, amounted to$4,637,940. The following schedule illustrates the debt service requirements to maturity for the Bank of New York loan as of June 30, 2022: Year Ending June 30 Principal Interest 2023 $ 1,014,580 $ 385,420 2024 1,105,615 294,385 2025 1,204,820 195,180 2026 1,312,925 87,075 Total $ 4,637,940 $ 962,060 All outstanding principal and interest due under this note shall be due and payable in full on the earliest to occur of: March 15, 2026, or the date of an event of default. 102 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J U N E 30, 2022 Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency(Continued) Pledged Revenue The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $303,659,672 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the City for the payment of indebtedness incurred by the dissolved redevelopment agency was $27,437,399 and the debt service obligation on the bonds was $26,213,078. In July 1994, the Agency entered into an affordable housing Pledge Agreement with So Cal Housing which they could use to secure affordable housing units. In August 1996, the Agency approved Amendment No. 2 to the 1994 Original Pledge, to commit to pay$339,200 annually to the California Housing Finance Agency(CHFA)to benefit the required reserves for three affordable family housing developments up to November 2026. The balance of the commitment at June 30, 2022, is $1,526,400. d. Insurance The Successor Agency is covered under the City of Rancho Cucamonga's insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 15. e. Participation Agreements In August 2005, the Agency entered into a real estate tax, sales tax, tax increment and business license tax participation agreement with Bass Outdoor World, LLC (Bass Pro), 80 VGL, LLC and 20 VGL, LLC (80 VGL, LLC and 20 VGL, LLC are collectively referred to as Landlord). Under the terms of the agreement, the Agency is required to make annual payments equal to one hundred percent (100%) of the tax increment revenues, sales tax revenues and business license tax paid during each year. However, Landlord has the priority for reimbursements of real estate taxes paid for each year prior to any payments being made to Bass Pro. The total amount paid to Landlord and Bass Pro shall not exceed $1,100,000 in any given year. The agreement terminates in fiscal year 2032-2033. However, due to ERAF payment made, the agreement was extended to December 2034. During the year ended June 30, 2022, the Agency made payments totaling $694,792. Note 19: Net Position Restatement The beginning net position of the Custodial Funds was restated by$61,635,178 to remove the bond liability and the related interest payable that should not have been recognized in the Custodial Funds per exclusion related to GASB 84 for reporting of debt payable from special assessments against benefited property owners.The City did not incur the debt and is not liable for the repayment of the obligations. 103 THIS PAGE INTENTIONALLY LEFT BLANK 104 REQUIRED SUPPLEMENTARY INFORMATION 105 THIS PAGE INTENTIONALLY LEFT BLANK 106 CITY OF RANCHO CUCAMONGA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION J U N E 30, 2022 Budgetary Comparison Information a. Budget Data General Budget Policies The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The Council conducts budget study sessions prior to holding a public hearing to adopt the budget. When required during the fiscal year, the Council also approves supplemental appropriations. There were several supplemental appropriations required during the year.A comprehensive update to budgeted figures occurs once per year as part of the Amended Budget process which is presented to the Council in May each fiscal year for approval. There were no significant non-budgeted financial activities during the year. The City Council may transfer funds between funds or activities set forth in the budget. The City Manager may transfer funds between line items within an appropriation as set forth in the budget and may transfer appropriations between activities within any fund. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level within the General Fund, Special Revenue Funds, and Capital Project Funds. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities. Basis of Budgeting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that for budgeting purposes only encumbrances are treated as expenditures. A reconciliation has been provided on the applicable schedule when the basis of budgeting differs from GAAP. For the fiscal year ended June 30, 2022, the following funds had no adopted budget due to the timing of the usage of these funds: SB 140 AB 2928 Traffic Congestion Relief Energy Efficient and Conservation Block Grant Money will be budgeted as needed based on specific projects. For the fiscal year ended June 30, 2022, the following funds had excess expenditures over appropriations: Expenditures Appropriations Excess Special revenue funds Library Services Grant $ 89,103 $ 88,080 $ 1,023 AD 91-2 Redemption-Day Canyon 21,171 20,820 351 Enhanced Infrastructure Financing District 248,932 246,830 2,102 107 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) GENERALFUND YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 126,756,685 $ 126,756,685 $ 126,756,685 $ - Resources(Inflows): Taxes 75,134,610 84,570,040 87,561,737 2,991,697 Licenses and permits 4,597,540 4,792,260 6,207,356 1,415,096 Intergovernmental 848,050 739,170 687,958 (51,212) Charges for services 8,053,070 5,713,310 5,663,958 (49,352) Use of money and property 2,499,920 1,437,410 (4,575,630) (6,013,040) Fines and forfeitures 1,039,850 1,279,580 1,287,454 7,874 Contributions 91,000 84,690 59,070 (25,620) Miscellaneous 3,932,020 7,498,550 14,971,128 7,472,578 Transfers in 1,632,400 29,619,170 29,617,859 (1,311) Leases - - 226,622 226,622 Proceeds from sale of capital assetls 25,990 3,265,410 3,318,081 52,671 Amounts Available for Appropriations 224,611,135 265,756,275 271,782,278 6,026,003 Charges to Appropriations(Outflow): General government General overhead 3,542,920 4,235,450 3,675,243 560,207 Personnel overhead 1,066,030 1,516,030 1,580,851 (64,821) City council 137,600 138,430 133,542 4,888 City management 1,079,110 1,044,910 1,018,341 26,569 City clerk 1,980 2,080 2,073 7 Administrative services 190,750 198,820 196,618 2,202 Business licensing 378,360 369,000 364,902 4,098 City facilities 1,009,270 1,085,000 952,246 132,754 Finance 1,598,930 1,636,950 1,628,840 8,110 Innovation and technology 4,159,040 4,375,530 4,159,948 215,582 Human resources 596,590 611,890 576,197 35,693 Procurement 266,770 229,400 226,377 3,023 Risk management 298,600 328,420 268,155 60,265 Treasury management 6,140 31,620 31,014 606 Community affairs 548,640 595,300 492,372 102,928 Records management 519,850 547,690 533,545 14,145 Healthy RC program 620,230 526,650 518,948 7,702 Public safety-police Sheriff contract services 47,540,230 47,540,940 45,017,346 2,523,594 Public safety-animal center Animal center 3,179,380 2,958,810 2,772,844 185,966 Community development Planning 1,976,590 2,182,190 1,599,322 582,868 Planning commission 20,390 20,420 15,057 5,363 Community improvement 849,820 864,020 782,696 81,324 Administration 1,088,880 2,073,750 1,955,818 117,932 Building and safety 1,949,420 2,103,940 2,026,090 77,850 Community services Administration 1,811,190 1,757,760 1,645,778 111,982 Central Park 1,401,760 786,970 685,026 101,944 Lions Center 891,170 166,540 126,946 39,594 RC Family Resource Center 177,830 151,940 132,828 19,112 RC Sports Center 673,810 364,210 346,370 17,840 Special events 277,710 310,030 264,090 45,940 Victoria Gardens Cultural Center 2,412,180 1,205,670 1,024,562 181,108 Contract classes 601,020 279,970 261,016 18,954 Park services 394,350 268,000 256,109 11,891 Engineering and public works Engineering administration 587,750 580,250 550,353 29,897 Development management 1,023,390 1,142,520 1,116,795 25,725 NPDES 246,430 196,470 194,505 1,965 Project management 686,180 466,030 410,283 55,747 Traffic management 241,050 248,120 231,312 16,808 Park maintenance 3,016,970 2,794,070 2,577,463 216,607 Vehicle and equipment maintenance 1,181,990 2,071,840 2,006,948 64,892 City facilities maintenance 3,747,020 3,664,440 3,325,046 339,394 Street maintenance 2,263,580 2,026,930 1,918,594 108,336 Fire facilities maintenance 372,330 372,970 353,538 19,432 Capital outlay 4,748,650 6,261,640 5,405,482 856,158 Debt service: Interest and fiscal charges 7,210 7,210 7,208 2 Transfers out 4,266,580 9,176,880 8,776,007 400,873 Total Charges to Appropriations 103,655,670 109,517,700 102,144,644 7,373,056 Budgetary Fund Balance,June 30(Budgetary Basis) $ 120,955,465 $ 156,238,575 169,637,634 $ 13,399,059 Encumbrances 3,482,602 Budgetary Fund Balance,June 30(GAAP Basis) $ 173,120,236 See Notes to Required Supplementary Information 108 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) DEVELOPMENT IMPACT FEES YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 69,635,049 $ 69,635,049 $ 69,635,049 $ - Resources(Inflows): Use of money and property 757,220 702,120 (3,058,974) (3,761,094) Developer participation 9,037,930 8,664,410 18,019,461 9,355,051 Amounts Available for Appropriations 79,430,199 79,001,579 84,595,536 5,593,957 Charges to Appropriation(Outflow): Public safety-police 200 200 200 - Public safety-animal services 60 60 60 - Community development 195,600 62,920 43,443 19,477 Community services 4,400 9,080 4,400 4,680 Engineering and public works 730,680 735,050 734,871 179 Capital outlay 10,443,040 3,975,200 1,736,635 2,238,565 Total Charges to Appropriations 11,373,980 4,782,510 2,519,609 2,262,901 Budgetary Fund Balance,June 30(Budgetary Basis) $ 68,056,219 $ 74,219,069 82,075,927 $ 7,856,858 Encumbrances 275,070 Budgetary Fund Balance,June 30(GAAP Basis) $ 82,350,997 See Notes to Required Supplementary Information. 109 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIGHTING DISTRICTS YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ (4,276,307) $ (4,276,307) $ (4,276,307) $ - Resources(Inflows): Taxes 2,134,470 2,134,470 2,142,744 8,274 Use of money and property 63,880 31,870 (151,567) (183,437) Miscellaneous - - 62,813 62,813 Transfers in 148,380 237,970 145,162 (92,808) Amounts Available for Appropriations (1,929,577) (1,871,997) (2,077,155) (205,158) Charges to Appropriation(Outflow): General government 2,088,110 2,293,030 2,139,399 153,631 Debt service: Interest and fiscal charges 3,690 3,720 3,702 18 Total Charges to Appropriations 2,091,800 2,296,750 2,143,101 153,649 Budgetary Fund Balance,June 30(Budgetary Basis) $ (4,021,377) $ (4,168,747) (4,220,256) $ (51,509) Encumbrances 437 Budgetary Fund Balance,June 30(GAAP Basis) $ (4,219,819) See Notes to Required Supplementary Information. 110 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) HOUSING SUCCESSOR AGENCY YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 139,198,670 $ 139,198,670 $ 139,198,670 $ Resources(Inflows): Use of money and property 22,820 852,510 737,005 (115,505) Miscellaneous 12,000 121,200 121,192 (8) Amounts Available for Appropriations 139,233,490 140,172,380 140,056,867 (115,513) Charges to Appropriation(Outflow): Community development 387,200 383,600 382,971 629 Capital outlay - 3,505,200 - 3,505,200 Total Charges to Appropriations 387,200 3,888,800 382,971 3,505,829 Budgetary Fund Balance,June 30(Budgetary Basis) $ 138,846,290 $136,283,580 139,673,896 $ 3,390,316 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $139,673,896 See Notes to Required Supplementary Information. 111 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) FIRE DISTRICT YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 88,134,204 $88,134,204 $88,134,204 $ - Resources(Inflows): Taxes 51,964,260 55,128,820 55,490,495 361,675 Licenses and permits 16,500 16,500 15,455 (1,045) Intergovernmental - - 12,405 12,405 Charges for services 1,860 1,900 819 (1,081) Use of money and property 434,690 548,610 (3,275,090) (3,823,700) Fines and forfeitures 148,000 143,000 119,672 (23,328) Miscellaneous 2,273,630 2,291,040 2,192,362 (98,678) Transfers in - 82,390 14,591 (67,799) Proceeds from sale of capital asset - 500 270 (230) Amounts Available for Appropriations 142,973,144 146,346,964 142,705,183 (3,641,781) Charges to Appropriation(Outflow): Public safety-fire protection 45,840,500 48,443,920 45,422,348 3,021,572 Capital outlay 18,243,000 23,171,690 21,669,598 1,502,092 Debt service: Interest and fiscal charges 31,370 31,370 31,368 2 Transfers out 105,470 105,470 105,466 4 Total Charges to Appropriations 64,220,340 71,752,450 67,228,780 4,523,670 Budgetary Fund Balance,June 30(Budgetary Basis) $ 78,752,804 $74,594,514 75,476,403 $ 881,889 Encumbrances 18,164,770 Budgetary Fund Balance,June 30(GAAP Basis) $93,641,173 See Notes to Required Supplementary Information. 112 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) FEDERAL GRANTS FUND YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ - $ - $ - $ Resources(Inflows): Intergovernmental 13,417,770 27,639,420 27,540,271 (99,149) Use of money and property 15,620 - - - Amounts Available for Appropriations 13,433,390 27,639,420 27,540,271 (99,149) Charges to Appropriation(Outflow): General government - 72,000 70,237 1,763 Transfers out - 27,567,420 27,499,103 68,317 Total Charges to Appropriations - 27,639,420 27,569,340 70,080 Budgetary Fund Balance,June 30(Budgetary Basis) $ 13,433,390 $ - (29,069) $ (29,069) Encumbrances 31,534 Budgetary Fund Balance,June 30(GAAP Basis) $ 2,465 See Notes to Required Supplementary Information. 113 CITY OF RANCHO CUCAMONGA MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 TOTAL PENSION LIABILITY Service Cost $ 4,661,973 $ 4,342,707 $ 4,193,507 $ 4,743,810 Interest 12,370,506 12,931,479 13,651,750 14,301,966 Difference between Expected and Actual Experience - (3,882,722) (1,557,585) (1,926,722) Changes in Assumptions (3,352,733) - 12,495,866 Benefit Payments, Including Refunds of Employee Contributions (5,229,846) (5,847,197) (6,606,205) (7,626,368) Net Change in Total Pension Liability 11,802,633 4,191,534 9,681,467 21,988,552 Total Pension Liability-Beginning 165,224,012 177,026,645 181,218,179 190,899,646 Total Pension Liability-Ending(a) $ 177,026,645 $ 181,218,179 $ 190,899,646 $ 212,888,198 PLAN FIDUCIARY NET POSITION Contributions-Employer $ 3,520,721 $ 3,433,074 $ 3,745,698 $ 4,207,753 Contributions-Employee 2,156,312 2,074,191 2,120,443 2,150,126 Net Investment Income 21,772,350 3,320,843 782,082 16,691,043 Benefit Payments, Including Refunds of Employee Contributions (5,229,846) (5,847,197) (6,606,205) (7,626,368) Administrative Expense (168,508) (91,249) (220,985) Net Plan to Plan Resource Movement - Other Miscellaneous Income/(Expense) - - - Net Change in Fiduciary Net Position 22,219,537 2,812,403 (49,231) 15,201,569 Plan Fiduciary Net Position-Beginning 124,692,088 146,911,625 149,724,028 149,674,797 Plan Fiduciary Net Position-Ending(b) $ 146,911,625 $ 149,724,028 $ 149,674,797 $ 164,876,366 Plan Net Pension Liability/(Assets)-Ending(a)-(b) $ 30,115,020 $ 31,494,151 $ 41,224,849 $ 48,011,832 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 82.99% 82.62% 78.40% 77.45% Covered Payroll $ 25,819,515 $ 25,082,858 $ 25,682,090 $ 26,459,567 Plan Net Pension Liability/(Asset)as a Percentage of Covered Payroll 116.64% 125.56% 160.52% 181.45% (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation,therefore only eight years are shown. Notes to Schedule: Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offers of Two Years Additional Service Credit(a.k.a. Golden Handshakes)that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. Changes 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. In 2017,the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2015,amounts reported reflect an adjustment of the discount rate from 7.5 percent(net of administrative expense)to 7.65 percent(without a reduction for pension plan administrative expense). In 2014,amounts reported were based on the 7.5 percent discount rate. 114 2019 2020 2021 2022 $ 4,869,644 $ 4,749,046 $ 4,521,001 $ 4,313,387 15,134,775 16,072,077 16,720,224 17,333,452 (1,496,029) - (1,248,961) (1,220,230) 2,212,199 2,512,596 - (8,728,016) (9,967,183) (10,819,096) (11,862,110) 11,992,573 13,366,536 9,173,168 8,564,499 212,888,198 224,880,771 238,247,307 247,420,475 $ 224,880,771 $ 238,247,307 $ 247,420,475 $ 255,984,974 $ 4,622,851 $ 5,133,141 $ 5,863,963 $ 6,250,129 2,032,448 1,976,074 1,971,470 1,921,495 13,809,497 11,584,539 9,140,223 42,762,843 (8,728,016) (9,967,183) (10,819,096) (11,862,110) (256,923) (126,024) (261,085) (190,892) (407) - 242,458 407 11,721,908 8,600,954 5,895,475 38,881,465 164,876,366 176,598,274 185,199,228 191,094,703 $ 176,598,274 $ 185,199,228 $ 191,094,703 $ 229,976,168 $ 48,282,497 $ 53,048,079 $ 56,325,772 $ 26,008,806 78.53% 77.73% 77.23% 89.84% $ 27,268,038 $ 27,077,712 $ 26,743,856 $ 24,764,323 177.07% 195.91% 210.61% 105.03% 115 CITY OF RANCHO CUCAMONGA MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 Actuarially Determined Contribution $ 3,433,074 $ 3,745,756 $ 4,192,505 $ 4,642,132 Contribution in Relation to the Actuarially Determined Contribution (3,433,074) (3,745,756) (4,192,505) (4,642,132) Contribution Deficiency(Excess) $ $ - $ - $ - Covered Payroll $ 25,082,858 $ 25,682,090 $ 26,459,567 $ 27,268,038 Contributions as a Percentage of Covered Payroll 13.69% 14.59% 15.84% 17.02% (1)Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown. Note to Schedule: Valuation Date: June 30,2020 Methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry Age Normal Cost Method Amortization method Level percentage of payroll,closed Asset valuation method Fair Value of Assets Inflation 2.500% Payroll Growth 2.750% Projected Salary Increases Varies by Entry Age and Service 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Investment Rate of Return Inflation. Retirement Age The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. 116 2019 2020 2021 2022 $ 5,135,066 $ 5,862,979 $ 6,250,173 $ 6,734,618 (5,135,066) (5,862,979) (6,250,173) (6,734,618) $ 27,077,712 26,743,856 24,764,323 24,973,838 18.96% 21.92% 25.24% 26.97% 117 CITY OF RANCHO CUCAMONGA COST SHARING MULTIPLE-EMPLOYER PLAN-MISCELLANEOUS RATE PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 Proportion of the Net Pension Liability 0.02166% 0.02652% 0.06568% 0.06723% Proportionate Share of the Net Pension Liability $ 1,348,194 $ 1,819,909 $ 2,281,501 $ 2,650,258 Covered Payroll $ 1,474,657 $ 1,437,227 $ 1,524,047 $ 1,577,007 Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 91.42% 126.63% 149.70% 168.06% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% 78.40% 75.87% 75.39% (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation,therefore only eight years are shown. Notes to Schedule: Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2020 valuation. However, offers of Two Years Additional Service Credit(a.k.a. Golden Handshakes)that occurred after the June 30, 2020 valuation date are not included in the figures above,unless the liability impact is deemed to be material by the plan actuary. Changes 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. In 2017,the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2015,amounts reported reflect an adjustment of the discount rate from 7.5 percent(net of administrative expense)to 7.65 percent(without a reduction for pension plan administrative expense). In 2014,amounts reported were based on the 7.5 percent discount rate. 118 2019 2020 2021 2022 0.06897% 0.07095% 0.07296% 0.09528% $ 2,599,301 $ 2,841,232 $3,077,476 $ 1,809,262 $ 1,619,191 $ 1,593,099 $ 1,771,563 $ 1,798,563 160.53% 178.35% 173.72% 100.59% 77.69% 77.73% 77.71% 90.49% 119 CITY OF RANCHO CUCAMONGP COST SHARING MULTIPLE-EMPLOYER PLAN-MISCELLANEOUS RATE PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1; 2015 2016 2017 2018 Actuarially Determined Contribution $ 210,430 $ 219,901 $ 238,202 $ 254,681 Contribution in Relation to the Actuarially Determined Contribution (210,430) (219,901) (238,202) (254,681) Contribution Deficiency(Excess) $ - $ $ - $ - Covered Payroll $ 1,437,227 $ 1,524,047 $ 1,577,007 $ 1,619,191 Contributions as a Percentage of Covered Payroll 14.64% 14.43% 15.10% 15.73% (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation,therefore only eight years are shown. Note to Schedule: Valuation Date: June 30,2020 Methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry Age Normal Cost Method Amortization method Level percentage of payroll,closed Asset valuation method Fair Value of Assets Inflation 2.500% Payroll Growth 2.750% Projected Salary Increases Varies by Entry Age and Service 7.00% Net of Pension Plan Investment and Administrative Expenses; Investment Rate of Return includes Inflation. Retirement Age The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post- retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. 120 2019 2020 2021 2022 $ 283,247 $ 332,407 $ 372,168 $ 406,745 (283,247) (332,407) (372,168) (406,745) $ 1,593,099 $ 1,771,563 $ 1,798,563 $ 1,851,717 17.78% 18.76% 20.69% 21.97% 121 CITY OF RANCHO CUCAMONGA COST SHARING MULTIPLE-EMPLOYER PLAN-SAFETY RATE PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 Proportion of the Net Pension Liability 0.31131% 0.33146% 0.57027% 0.57286% Proportionate Share of the Net Pension Liability $ 19,373,864 $ 22,750,560 $ 29,535,666 $ 34,229,524 Covered Payroll $ 10,396,960 $ 10,554,523 $ 11,373,722 $ 11,451,394 Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 186.34% 215.55% 259.68% 298.91% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% 78.40% 72.69% 71.74% (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation,therefore only eight years are shown. Notes to Schedule: Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2020 valuation. However, offers of Two Years Additional Service Credit(a.k.a. Golden Handshakes)that occurred after the June 30, 2020 valuation date are not included in the figures above,unless the liability impact is deemed to be material by the plan actuary. Changes 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. In 2017,the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2015,amounts reported reflect an adjustment of the discount rate from 7.5 percent(net of administrative expense)to 7.65 percent(without a reduction for pension plan administrative expense). In 2014,amounts reported were based on the 7.5 percent discount rate. 122 2019 2020 2021 2022 0.59184% 0.60633% 0.62729% 0.55761% $ 34,726,501 $ 37,850,274 $41,792,462 $ 19,529,265 $ 11,663,014 $ 12,029,495 $ 12,348,120 $ 13,128,489 297.75% 314.65% 338.45% 148.75% 73.39% 73.37% 73.12% 86.61% 123 CITY OF RANCHO CUCAMONGA COST SHARING MULTIPLE-EMPLOYER PLAN-SAFETY RATE PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 Actuarially Determined Contribution $ 2,827,842 $ 3,007,980 $ 3,273,056 $ 3,577,900 Contribution in Relation to the Actuarially Determined Contribution (2,827,842) (3,007,980) (3,273,056) (3,577,900) Contribution Deficiency(Excess) $ $ - $ - $ - Covered Payroll $ 10,554,523 $ 11,373,722 $ 11,451,394 $ 11,663,014 Contributions as a Percentage of Covered Payroll 26.79% 26.45% 28.58% 30.68% (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation,therefore only eight years are shown. Note to Schedule: Valuation Date: June 30,2020 Methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry Age Normal Cost Method Amortization method Level percentage of payroll,closed Asset valuation method Fair Value of Assets Inflation 2.500% Payroll Growth 2.750% Projected Salary Increases Varies by Entry Age and Service 7.00% Net of Pension Plan Investment and Administrative Expenses; Investment Rate of Return includes Inflation. Retirement Age The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90%of Scale MP-2016 published by the Society of Actuaries. 124 2019 2020 2021 2022 $ 4,101,079 $ 4,727,134 $ 10,065,699 $ 9,113,770 (4,101,079) (4,727,134) (10,065,699) (9,113,770) $ 12,029,495 $12,348,120 $ 13,128,489 $13,129,347 34.09% 38.28% 76.67% 69.42% 125 CITY OF RANCHO CUCAMONGA PARS RETIREMENT ENHANCEMENT PLAN SCHEDULE OF CHANGES IN NET PENSION LIABILITY/(ASSET)AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 TOTAL PENSION LIABILITY Service Cost $ 719,000 $ 743,000 $ 716,000 $ 774,673 Interest 1,329,000 1,425,000 1,523,000 1,639,815 Changes of Benefits Terms - - 538,000 - Difference Between Expected and Actual Experience - (110,000) Changes in Assumptions 2,100,000 Changes in Benefit Terms - (4,236) Benefit Payments, Including Refunds of Employee Contributions (495,000) (546,000) (631,000) (719,919) Net Change in Total Pension Liability 1,553,000 1,622,000 4,136,000 1,690,333 Total Pension Liability-Beginning 20,790,000 22,343,000 23,965,000 28,101,000 Total Pension Liability-Ending(a) $22,343,000 $ 23,965,000 $28,101,000 $ 29,791,333 PLAN FIDUCIARY NET POSITION Contribution-Employer $ 497,000 $ 467,000 $ 312,000 $ 279,830 Net Investment Income 3,177,000 660,000 21,000 2,872,446 Benefit Payments, Including Refunds of Employee Contributions (495,000) (546,000) (631,000) (719,919) Other Changes in Fiduciary Net Position (33,000) (47,000) (35,000) (52,639) Net Change in Fiduciary Net Position 3,146,000 534,000 (333,000) 2,379,718 Plan Fiduciary Net Position-Beginning 24,536,000 27,682,000 28,216,000 27,883,000 Plan Fiduciary Net Position-Ending(b) $27,682,000 $ 28,216,000 $27,883,000 $ 30,262,718 Plan Net Pension Liability/(Asset)-Ending(a)-(b) $ (5,339,000) $ (4,251,000) $ 218,000 $ (471,385) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 123.90% 117.74% 99.22% 101.58% Covered Payroll $ 24,363,588 $ 22,739,613 $21,593,214 $ 19,909,987 Plan Net Pension Liability/(Asset)as a Percentage of Covered Payroll -21.91% -18.69% 1.01% -2.37% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation,therefore only eight years are shown. Notes to Schedule: Benefit Changes In 2020, employer paid member contributions for Fire Management employee group added. There were no benefit changes in 2019. In 2018, the Benefit Factor used to determine the City Manager's benefit was changed to 0.5%beginning at age 55 instead of age 60. Changes of Assumptions: In 2020, Mortality improvement scale was updated to Scale MP2020. In 2018,the discount rate was updated from 5.75%to 6.00%,the demographic assumptions were updated to CalPERS 1997-2015 Experience Study,and the mortality improvement scale was updated to Society of Actuaries Scale MP-2018. 126 2019 2020 2021 2022 $ 736,116 $ 660,456 $ 632,103 $ 561,042 1,731,246 1,716,445 1,794,641 1,803,717 - - 149,388 - (1,975,546) (933,120) (683,589) (283,683) (323,105) (837,663) (983,660) (1,106,896) (1,167,119) (1,352,541) 1,393,241 252,433 1,197,640 29,791,333 28,438,792 29,832,033 30,084,466 $ 28,438,792 $ 29,832,033 $30,084,466 $31,282,106 $ 657,424 $ 609,239 $ 648,386 $ 563,099 1,865,280 1,890,679 1,090,928 7,631,818 (837,663) (983,660) (1,106,896) (1,167,119) (39,500) (38,432) (57,282) (49,786) 1,645,541 1,477,826 575,136 6,978,012 30,262,718 31,908,259 33,386,085 33,961,221 $ 31,908,259 $ 33,386,085 $33,961,221 $40,939,233 $ (3,469,467) $ (3,554,052) $ (3,876,755) $ (9,657,127) 112.20% 111.91% 112.89% 130.87% $ 18,246,690 $ 16,119,382 $14,750,069 $13,301,202 -19.01% -22.05% -26.28% -72.60% 127 CITY OF RANCHO CUCAMONGA PARS RETIREMENT ENHANCEMENT PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 Actuarially Determined Contribution $ 467,000 $ 307,590 $ 278,740 $ 657,424 Contribution in Relation to the Actuarially Determined Contribution (467,000) (307,590) (278,740) (657,424) Contribution Deficiency(Excess) $ $ - $ - $ - Covered Payroll $ 22,739,613 $ 21,593,214 $ 19,909,987 $ 18,246,690 Contributions as a Percentage of Covered Payroll(2) 2.05% 1.42% 1.40% 3.60% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation,therefore only eight years are shown. (2) Due to timing differences for when the plan recognizes contributions and a change in the actuarially determined contribution rate from 1.40% to 3.90%during the fiscal year,the rate does not report the actuarially determined rate of 3.90%for 2018. Note to Schedule: Valuation Date: June 30,2020 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Amortization period 7-year fixed period Assets valuation method Investment gains and losses spread over 5-years Discount rate 6.00% Inflation 2.75% Salary Increases 3.0%annually Investment rate of return 6.00%net of pension investment and administrative expenses, including inflation. Retirement age CalPERS 1997-2015 Experience Study Mortality Post-retirement mortality projected fully generational with Scale MP-2020 128 2019 2020 2021 2022 $ 628,911 $ 626,595 $ 563,099 $ 547,799 (628,911) (626,595) (563,099) (547,799) $ 16,119,382 $ 14,750,069 $ 13,301,202 12,451,110 3.90% 4.25% 4.23% 4.40% 129 CITY OF RANCHO CUCAMONGA SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY/(ASSET)AND RELATED RATIOS AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1) 2018 2019 2020 2021 Total OPEB Liability Service cost $ 400,000 $ 412,316 $ 424,685 $ 362,464 Interest on the total OPEB liability 1,516,000 1,562,020 1,606,264 1,418,049 Actual and expected experience difference - - (3,896,602) - Changes in assumptions (239,453) (415,987) Benefit payments (1,046,000) (1,143,902) (1,216,647) (1,292,883) Net change in total OPEB liability 870,000 830,434 (3,321,753) 71,643 Total OPEB liability-beginning 27,688,000 28,558,000 29,388,434 26,066,681 Total OPEB liability-ending(a) 28,558,000 29,388,434 26,066,681 26,138,324 Plan Fiduciary Net Position Contribution-employer 281,000 998,969 469,195 454,699 Net investment income 1,429,000 1,339,488 2,114,944 1,949,800 Benefit payments (1,046,000) (1,143,902) (1,216,647) (1,292,883) Administrative expense (14,000) (52,080) (8,528) (17,988) Net change in plan fiduciary net position 650,000 1,142,475 1,358,964 1,093,628 Plan fiduciary net position-beginning 27,617,000 28,267,000 29,409,475 30,768,439 Plan fiduciary net position-ending(b) $ 28,267,000 $ 29,409,475 $ 30,768,439 $ 31,862,067 Net OPEB Liability/(Asset)-ending(a)-(b) $ 291,000 $ (21,041) $ (4,701,758) $ (5,723,743) Plan fiduciary net position as a percentage of the total OPEB liability 98.98% 100.07% 118.04% 121.90% Covered-employee payroll $ 15,842,421 $ 16,635,534 $ 16,440,813 $ 17,940,240 Net OPEB asset as a percentage of covered-employee payroll 1.84% -0.13% -28.60% -31.90% (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years'information will be displayed up to 10 years as information becomes available. Notes to Schedule:None Changes in assumptions: In 2020,the ACA Excise Tax was removed from liabilities. In 2021,the following changes of assumptions were made: Discount rate was updated based on newer capital market assumptions Inflation assumption dropped from 2.75%to 2.50%.which dropped the discount rate,medical trend,and aggregate payroll increase by 0.25%. Decreased medical trend rate for Kaiser Senior Advantage. New rates from CaIPERS Experience Study. Updated assumption for medical eligible implied subsidy. Mortality improvement scale was updated to Scale MP-2021. 130 2022 $ 351,997 1,421,351 (107,488) (729,439) (1,295,174) (358,753) 26,138,324 25,779,571 32,589 4,356,510 (1,295,174) (13,863) 3,080,062 31,862,067 $ 34,942,129 $ (9,162,558) 135.54% $ 18,018,339 -50.85% 131 CITY OF RANCHO CUCAMONGA SCHEDULE OF CONTRIBUTIONS-OPEB AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1) 2018 2019 2020 2021 Actuarially Determined Contribution $ 998,969 $ 469,195 $ 454,699 $ 32,589 Contribution in Relation to the Actuarially Determined Contributions (998,969) (469,195) (454,699) (32,589) Contribution Deficiency(Excess) $ - $ - $ - $ - Covered-employee payroll $ 16,635,534 $ 16,440,813 $ 17,940,240 $ 18,018,339 Contributions as a percentage of covered-employee payroll 6.01% 2.85% 2.53% 0.18% (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years'information will be displayed up to 10 years as information becomes available. Methods and assumptions used to determine contributions: Valuation Date June 30,2021 Actuarial Cost Method Entry Age Nomal Amortization Valuation Method/Period Level percent of pay over a 17-year fixed period Asset Valuation Method Investment gains/losses spread over 5-year rolling period Discount Rate 5.25% General Inflation 2.50% Payroll Growth 2.75%per annum,in aggregate Mortality,Disability,Termination, CalPERS 2000-2019 Experience Study; Retirement Mortality Improvement-Mortality projected fully generational with Scale MP-2021 Medical Trend Non-Medicare-6.50%for 2023,decreasing to an ultimate rate of 3.75%in 2076; Medicare(Non-Kaiser)-5.65%for 2023,decreasing to an ultimate rate of 3.75%in 2076; Medicare(Kaiser)-4.60%for 2023,decreasing to an ultimate rate of 3.75 in 2076 Other Assumptions PEMHCA minimum increases of 4.00%annually;Healthcare participation for future retirees at 100%for Tier 1 and 75%if Tier 2 for currently covered,and 50%for others 132 2022 $ 15,729 (15,729) $ 20,503,652 0.08% 133 THIS PAGE INTENTIONALLY LEFT BLANK 134 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds Special Revenue Funds account for revenues derived from specific sources which are required by law or administrative regulation to be accounted for in a separated fund. Funds included are: Gas Tax Fund - Established to account for the receipts and disbursements of the state gas tax allocations to fund road construction and maintenance of the City network system. Recreation Fund - Established to account for the receipts and disbursements for community classes, special events, and activities that are sponsored by the Community Services Department, as well as, state and local grants which provide funding for related community services or facilities. Beautification Fund - Established to account for receipts from development projects to provide proper landscaping and irrigation systems after the construction of parkway and median improvements. Landscape Maintenance Districts Fund - Established to account for receipts of special assessments which are restricted for providing landscape maintenance within specified geographical boundaries. Pedestrian Grant Fund - Established to account for the receipts and disbursements of county entitlement funds for the construction of public facilities for the exclusive use of pedestrians and bicycles. Community Development Block Grant Fund - Established to account for Federal grant funding from the Department of Housing and Urban Development under the Housing and Community Development Act of 1974, as amended. Assessment Administration Fund - Established to account for the administration of the various special districts within the City. SB 140 Fund - Established to account for the receipt and disbursement of state matching funds that are restricted for the construction of eligible street construction projects. Air Quality Improvement Fund - Established to account for the receipt and disbursement of funds received from the South Coast Air Quality Management District as a result of Assembly Bill 2766. Masi Commerce Center Fund - Established to acquire the necessary infrastructure from the developer after the completion and acceptance of the approved improvements. Financing was provided by the sale of bonds pursuant to the provisions of the Improvement Act of 1915. Measure I Fund - Established to account for the receipts and disbursements of the City's allocation of the half-cent sales tax collected throughout San Bernardino County for local street construction and maintenance. Library Services Fund - Established to account for the receipts and disbursements for library-related services provided by the City of Rancho Cucamonga Library. Funding for this service is made possible through a transfer of San Bernardino County library property tax revenues to the City of Rancho Cucamonga for library purposes. 135 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) Public Safety Grants Fund - Established to account for the receipts and disbursements of miscellaneous state, local, and Federal grant monies. These receipts are restricted for law enforcement and public safety-related expenditures. Used Oil Recycling Fund - Established to account for the receipts and disbursements of the state grant monies for the purpose of establishing and administering used oil collection programs. These receipts are restricted for oil recycling collection and educational programs. Library Services Grants Fund - Established to account for the receipts and disbursements of miscellaneous state, local, and Federal grant monies not accounted for in other funds. These receipts are restricted for library-related expenditures. AB 2928 Traffic Congestion Relief Fund - Established fund to account for the receipts and disbursements of funds received as a result of Assembly Bill 2928. These receipts are restricted for transportation projects that relieve congestion, connect transportation systems, and provide better goods movement. Litter Reduction Grant Fund - Established to account for the receipts and disbursements of the state grant monies that are used for the collection and recycling of beverage containers at large venues, public areas, residential communities or schools. Energy Efficiency and Conservation Block Grant Fund - Established to account for the receipts and disbursements of Federal grant monies received through the U.S. Department of Energy under the EECBG program. The receipts are restricted for funding projects that reduce energy consumption and promote energy efficiency. SAFETEA-LU Grant Fund - Established to account for the receipts and disbursements of Federal grant monies received from the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) from the Department of Transportation. The receipts are restricted for funding highways, highway safety, and public transportation projects. Underground Utilities Fund - Established to account for fees collected from developments for future undergrounding of overhead utilities. Citywide Infrastructure Improvement Fund - Established to account for capital improvement project reimbursements, primarily from the San Bernardino County Transportation Authority, to provide funds that will be used for general infrastructure throughout the City. Proposition 1 B Fund — Established to account for the receipts and disbursements of Proposition 1 B and Proposition 1 B State-Local Partnership Program (SLPP) funds which provide for the maintenance and improvement of local transportation facilities. This fund is allocated to the City by the California Transportation Commission. Integrated Waste Management Fund - Established to account for receipts from Assembly Bill 939 which are generated from refuse haulers. These receipts are restricted for providing funding for the disposal of household hazardous waste. SB1 - TCEP Fund — Established to account for the receipts and disbursements of SB 1 Trade Corridor Enhancement Program (TCEP) funds which provide for the design and construction of the Etiwanda Grade Separation Project. 136 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) Public Art Trust Fund — Established to account for the receipts of public art in-lieu fees restricted for the selection, purchase, placement, and maintenance of art installed by the City or on City property. State Grants Fund — Established to account for grant fund received from the State of California and the allowable expenditures for those programs. The State grant programs reported in this special revenue fund are nonrecurring. Assessment District 91-2 Redemption-Day Canyon Fund - Established to account for Drainage Area No. 91-2 assessments revenues which are restricted for maintenance and servicing of a Day Canyon Drainage Basin. Park Improvement District No. 85 Maintenance Fund - Established to account for Park and Recreation Improvement District No. PD-85 assessments revenues which are restricted for the maintenance and operations of Heritage and Red Hill Community Parks. CommunitV Facilities District 2000-03 Park Maintenance Fund - Established to account for Community Facilities District No. 2000-03 special tax revenues which are restricted for the park maintenance and operations of the District. CFD 2017-01 No. Etiwanda - Established to account for Community Facilities District No. 2017-01 special tax revenues which are restricted for the maintenance and operations of the District. CFD 2018-01 Empire Lakes- Established to account for Community Facilities District No. 2018-01 special tax revenues which are restricted for the maintenance and operations of the District. Enhanced Infrastructure Financing District (EIFD) - Established to account for the receipt and use of incremental property tax revenue to finance public facilities, maintenance and operations of those public facilities, and administration of the EIFD within a designated district boundary. Capital Projects Fund Capital Projects Fund - Established to account for major capital improvement projects not accounted for in other funds. 137 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2022 Special Revenue Funds Landscape Maintenance Gas Tax Recreation Beautification Districts Assets: Cash and investments $ 16,721,575 $ 13,065 $ 574,201 $ 22,059,097 Receivables: Accounts 609,518 - - 36,573 Taxes 326,772 - 86,105 Accrued interest 52,130 1,806 66,794 Other loans - - - Grants - Leases 1,932,212 Prepaid costs 900 Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ 17,709,995 $ 13,065 $ 576,007 $ 24,181,681 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 1,346,886 $ 13,545 $ $ 953,518 Accrued liabilities 29,450 - 50,286 Unearned revenues - - Deposits payable Due to other governments - Due to other funds - 5,267 - - Total Liabilities 1,376,336 18,812 - 1,003,804 Deferred Inflows of Resources: Unavailable revenues - - - Deferred lease revenues inflows 1,886,945 Total Deferred Inflows of Resources 1,886,945 Fund Balances: Nonspendable: Prepaid costs 900 Restricted for: Community development projects - Public safety-police Parks and recreation - Engineering and public works 16,333,659 576,007 - Capital improvement projects - - Underground utilities - Landscape maintenance 21,290,032 Library services - Unassigned - (5,747) - - Total Fund Balances 16,333,659 (5,747) 576,007 21,290,932 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 17,709,995 $ 13,065 $ 576,007 $ 24,181,681 138 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2022 (CONTINUED) Special Revenue Funds Community Pedestrian Development Assessment Grant Block Grant Administration SB 140 Assets: Cash and investments $ $ 258,401 $ 882,219 $ 35,104 Receivables: Accounts - - - Taxes - - Accrued interest - - 2,515 Other loans - 1,215,808 - Grants - 1,081,131 Leases - - Prepaid costs Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ - $ 2,555,340 $ 884,734 $ 35,104 Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 578,306 $ 9,886 $ - Accrued liabilities - 2,712 5,595 Unearned revenues - - - Deposits payable - - Due to other governments - 409,099 Due to other funds 9,237 - - Total Liabilities 9,237 990,117 15,481 Deferred Inflows of Resources: Unavailable revenues - 222,309 - Deferred lease revenues inflows - - Total Deferred Inflows of Resources - 222,309 Fund Balances: Nonspendable: Prepaid costs - - - Restricted for: Community development projects - 1,342,914 869,253 - Public safety-police - - - Parks and recreation - Engineering and public works - 35,104 Capital improvement projects - - Underground utilities - Landscape maintenance - Library services - Unassigned (9,237) - - - Total Fund Balances (9,237) 1,342,914 869,253 35,104 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ - $ 2,555,340 $ 884,734 $ 35,104 139 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2022 Special Revenue Funds Masi Air Quality Commerce Library Improvement Center Measure I Services Assets: Cash and investments $ 479,412 $ $ 6,115,032 $ 14,857,753 Receivables: Accounts 71,100 - - - Taxes - 1,143,269 61,122 Accrued interest 1,565 - 15,748 31,790 Other loans - - - Grants 9,000 - Leases - - Prepaid costs 11,539 Restricted assets: Cash and investments with fiscal agents - - Total Assets $ 561,077 $ - $ 7,274,049 $ 14,962,204 Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ $ $ 218,897 $ 200,406 Accrued liabilities 6,020 58,824 Unearned revenues - 2,025,000 Deposits payable 15 Due to other governments - Due to other funds 22,405 - - - Total Liabilities 22,405 - 224,917 2,284,245 Deferred Inflows of Resources: Unavailable revenues - 396,524 - Deferred lease revenues inflows - Total Deferred Inflows of Resources 396,524 - Fund Balances: Nonspendable: Prepaid costs - - 11,539 Restricted for: Community development projects 538,672 - - Public safety-police - Parks and recreation - Engineering and public works 6,652,608 - Capital improvement projects - 2,205,948 Underground utilities - Landscape maintenance - Library services 10,460,472 Unassigned - Total Fund Balances 538,672 6,652,608 12,677,959 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 561,077 $ - $ 7,274,049 $ 14,962,204 140 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2022 (CONTINUED) Special Revenue Funds AB 2928 Library Traffic Public Safety Used Oil Services Congestion Grants Recycling Grants Relief Assets: Cash and investments $ 1,392,405 $ 25,144 $ 350,205 $ 281,335 Receivables: Accounts - - - - Taxes - - - Accruedinterest 291 52 793 Other loans - - - Grants 30,158 Leases - Prepaid costs Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 1,422,854 $ 25,196 $ 350,998 $ 281,335 Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 119,662 $ - $ 3,035 $ Accrued liabilities - 623 - Unearned revenues - Deposits payable Due to other governments - Due to other funds 30,159 - - Total Liabilities 149,821 623 3,035 Deferred Inflows of Resources: Unavailable revenues - - - Deferred lease revenues inflows Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Restricted for: Community development projects - Public safety-police 1,273,033 Parks and recreation - - - Engineering and public works 24,573 281,335 Capital improvement projects - - Underground utilities Landscape maintenance - Library services 347,963 - Unassigned - - - - Total Fund Balances 1,273,033 24,573 347,963 281,335 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 1,422,854 $ 25,196 $ 350,998 $ 281,335 141 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2022 Special Revenue Funds Energy Litter Efficiency and Reduction Conservation SAFETEA-LU Underground Grant Block Grant Grant Utilities Assets: Cash and investments $ 60,538 $ $ 466,823 $ 11,234,616 Receivables: Accounts - - - Taxes - - Accrued interest 1,472 35,421 Other loans 121,420 - - Grants - Leases - Prepaid costs 725 Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 61,263 $ 121,420 $ 468,295 $ 11,270,037 Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 5,874 $ $ $ 16,706 Accrued liabilities 83 - Unearned revenues - Deposits payable - Due to other governments - 121,420 Due to other funds - - - Total Liabilities 5,957 121,420 16,706 Deferred Inflows of Resources: Unavailable revenues - - - Deferred lease revenues inflows - Total Deferred Inflows of Resources - Fund Balances: Nonspendable: Prepaid costs 725 Restricted for: Community development projects 54,581 - Public safety-police - 468,295 - Parks and recreation - - Engineering and public works - Capital improvement projects - - Underground utilities - 11,253,331 Landscape maintenance - - Library services - Unassigned - - Total Fund Balances 55,306 - 468,295 11,253,331 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 61,263 $ 121,420 $ 468,295 $ 11,270,037 142 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2022 (CONTINUED) Special Revenue Funds Citywide Integrated Infrastructure Proposition Waste Improvement 1B Management SB1 -TCEP Assets: Cash and investments $ 24,857,458 $ 270,584 $ 4,249,992 $ - Receivables: Accounts 183,015 19,917 6,399 7,428,347 Taxes - - 435,638 - Accrued interest 78,221 846 12,524 Other loans - - - - Grants 474,299 Leases - - Prepaid costs 2,375 Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 25,118,694 $ 291,347 $ 4,706,928 $ 7,902,646 Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 75,363 $ $ 12,427 $ 377,249 Accrued liabilities - 21,120 - Unearned revenues - Deposits payable Due to other governments - - Due to other funds 1,433 - - 7,525,397 Total Liabilities 76,796 33,547 7,902,646 Deferred Inflows of Resources: Unavailable revenues - - - Deferred lease revenues inflows Total Deferred Inflows of Resources - Fund Balances: Nonspendable: Prepaid costs 2,375 Restricted for: Community development projects - Public safety-police Parks and recreation - Engineering and public works - 291,347 4,671,006 Capital improvement projects 25,041,898 - - Underground utilities - Landscape maintenance Library services Unassigned - - - Total Fund Balances 25,041,898 291,347 4,673,381 - Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 25,118,694 $ 291,347 $ 4,706,928 $ 7,902,646 143 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2022 Special Revenue Funds AD 91-2 Public Art State Grants Redemption- PD 85 Trust Fund Fund Day Canyon Maintenance Assets: Cash and investments $ 559,703 $ 178,523 $ 80,612 $ 3,391,274 Receivables: Accounts - - - 4,995 Taxes - 399 12,252 Accrued interest 1,764 230 12,326 Other loans - - - - Grants 103,770 - Leases - 1,575,238 Prepaid costs - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 561,467 $ 282,293 $ 81,241 $ 4,996,085 Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 2,500 $ 42,561 $ - $ 111,164 Accrued liabilities - - 426 5,992 Unearned revenues 247,840 - - Deposits payable - - Due to other governments - Due to other funds - - - - Total Liabilities 2,500 290,401 426 117,156 Deferred Inflows of Resources: Unavailable revenues - - - - Deferred lease revenues inflows 1,546,688 Total Deferred Inflows of Resources 1,546,688 Fund Balances: Nonspendable: Prepaid costs - Restricted for: Community development projects - Public safety-police - - Parks and recreation 558,967 Engineering and public works - - Capital improvement projects - Underground utilities - - Landscape maintenance 80,815 3,332,241 Library services - - Unassigned - (8,108) - - Total Fund Balances 558,967 (8,108) 80,815 3,332,241 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 561,467 $ 282,293 $ 81,241 $ 4,996,085 144 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2022 (CONTINUED) Special Revenue Funds Enhanced CFD 2000-03 Infrastructure Park CFD 2017-01 CFD 2018-01 Financing Maintenance No.Etiwanda Empire Lakes District Assets: Cash and investments $ 523,998 $ 3,591 $ 190,270 $ Receivables: Accounts - - - Taxes 3,060 179 Accrued interest 1,273 522 Other loans - - Grants Leases - Prepaid costs - Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ 528,331 $ 3,591 $ 190,971 $ - Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 36,282 $ $ 790 $ 60,769 Accrued liabilities 3,665 - - Unearned revenues - - Deposits payable - Due to other governments - Due to other funds - - 181,029 Total Liabilities 39,947 790 241,798 Deferred Inflows of Resources: Unavailable revenues - - - Deferred lease revenues inflows - Total Deferred Inflows of Resources - Fund Balances: Nonspendable: Prepaid costs - Restricted for: Community development projects - Public safety-police - Parks and recreation - Engineering and public works - Capital improvement projects - Underground utilities - - - Landscape maintenance 488,384 3,591 190,181 Library services - - - - Unassigned - - - (241,798) Total Fund Balances 488,384 3,591 190,181 (241,798) Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 528,331 $ 3,591 $ 190,971 $ - 145 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2022 Capital Projects Fund Total Nonmajor Capital Governmental Projects Fund Funds Assets: Cash and investments $ 9,494,441 $ 119,607,371 Receivables: Accounts - 8,359,864 Taxes - 2,068,796 Accrued interest 24,305 342,388 Other loans - 1,337,228 Grants 1,698,358 Leases 3,507,450 Prepaid costs - 15,539 Restricted assets: Cash and investments with fiscal agents 412,846 412,846 Total Assets $ 9,931,592 $ 137,349,840 Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 2,577,424 $ 6,763,250 Accrued liabilities - 184,796 Unearned revenues 2,272,840 Deposits payable 15 Due to other governments - 530,519 Due to other funds 220,756 7,995,683 Total Liabilities 2,798,180 17,747,103 Deferred Inflows of Resources: Unavailable revenues - 618,833 Deferred lease revenues inflows 3,433,633 Total Deferred Inflows of Resources 4,052,466 Fund Balances: Nonspendable: Prepaid costs 15,539 Restricted for: Community development projects 2,805,420 Public safety-police 1,741,328 Parks and recreation 558,967 Engineering and public works - 28,865,639 Capital improvement projects 7,133,412 34,381,258 Underground utilities - 11,253,331 Landscape maintenance 25,385,244 Library services 10,808,435 Unassigned (264,890) Total Fund Balances 7,133,412 115,550,271 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 9,931,592 $ 137,349,840 146 THIS PAGE INTENTIONALLY LEFT BLANK 147 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2022 Special Revenue Funds Landscape Maintenance Gas Tax Recreation Beautification Districts Revenues: Taxes $ $ $ $ 11,472,065 Licenses and permits 79,972 Intergovernmental 7,666,916 - Charges for services - 40,298 Use of money and property (598,603) (468) (20,455) (637,362) Contributions - - Developer participation - Miscellaneous - - 294 Total Revenues 7,068,313 (468) (20,455) 10,955,267 Expenditures: Current: General government - - - Public safety-police Public safety-fire protection - Community development 10,767,496 Community services - Engineering and public works 2,159,470 790 - Capital outlay 5,463,787 - 1,050,832 Total Expenditures 7,623,257 - 790 11,818,328 Excess(Deficiency)of Revenues Over(Under)Expenditures (554,944) (468) (21,245) (863,061) Other Financing Sources(Uses): Transfers in - 371,145 Transfers out - Total Other Financing Sources (Uses) - - - 371,145 Net Change in Fund Balances (554,944) (468) (21,245) (491,916) Fund Balances, Beginning of Year 16,888,603 (5,279) 597,252 21,782,848 Fund Balances, End of Year $ 16,333,659 $ (5,747) $ 576,007 $ 21,290,932 148 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2022 (CONTINUED) Special Revenue Funds Community Pedestrian Development Assessment Grant Block Grant Administration SB 140 Revenues: Taxes $ $ $ $ Licenses and permits Intergovernmental 2,260,694 Charges for services - Use of money and property (11,811) (31,490) (1,432) Contributions Developer participation - - Miscellaneous - 34,764 960,180 Total Revenues - 2,283,647 928,690 (1,432) Expenditures: Current: General government - - 892,879 Public safety-police - - Public safety-fire protection - - - Community development - 2,303,335 Community services - - Engineering and public works - Capital outlay - - - Total Expenditures - 2,303,335 892,879 - Excess(Deficiency)of Revenues Over(Under)Expenditures - (19,688) 35,811 (1,432) Other Financing Sources(Uses): Transfers in - - Transfers out - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - (19,688) 35,811 (1,432) Fund Balances, Beginning of Year (9,237) 1,362,602 833,442 36,536 Fund Balances,End of Year $ (9,237) $ 1,342,914 $ 869,253 $ 35,104 149 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2022 Special Revenue Funds Masi Air Quality Commerce Library Improvement Center Measure I Services Revenues: Taxes $ $ $ $ 5,326,550 Licenses and permits - Intergovernmental 248,829 4,558,998 28,519 Charges for services - - 51,119 Use of money and property (16,934) 46 (231,450) (573,710) Contributions - 1,641,149 Developer participation - Miscellaneous - - - 27,122 Total Revenues 231,895 46 4,327,548 6,500,749 Expenditures: Current: General government 17,792 180 - - Public safety-police - - - Public safety-fire protection - Community development - Community services - 3,918,784 Engineering and public works - 1,516,376 - Capital outlay 255,039 - 546,132 290,263 Total Expenditures 272,831 180 2,062,508 4,209,047 Excess(Deficiency)of Revenues Over(Under)Expenditures (40,936) (134) 2,265,040 2,291,702 Other Financing Sources(Uses): Transfers in - - - Transfers out (312,107) (140,340) Total Other Financing Sources (Uses) - (312,107) - (140,340) Net Change in Fund Balances (40,936) (312,241) 2,265,040 2,151,362 Fund Balances, Beginning of Year 579,608 312,241 4,387,568 10,526,597 Fund Balances,End of Year $ 5389672 $ - $ 6,652,608 $ 12,677,959 150 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2022 (CONTINUED) Special Revenue Funds AB 2928 Library Traffic Public Safety Used Oil Services Congestion Grants Recycling Grants Relief Revenues: Taxes $ $ $ $ Licenses and permits - Intergovernmental 511,262 23,326 70,330 Charges for services - - -Use of money and property (57,470) (869) (12,850) (11,355) Contributions - - Developer participation - Miscellaneous - - - Total Revenues 453,792 22,457 57,480 (11,355) Expenditures: Current: General government - - - Public safety-police 213,552 Public safety-fire protection 28,018 - Community development - 16,866 - - Community services - 89,103 Engineering and public works - - - Capital outlay 32,969 - - - Total Expenditures 274,539 16,866 89,103 - Excess(Deficiency)of Revenues Over(Under)Expenditures 179,253 5,591 (31,623) (11,355) Other Financing Sources(Uses): Transfers in - - - Transfers out - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 179,253 5,591 (31,623) (11,355) Fund Balances, Beginning of Year 1,093,780 18,982 379,586 292,690 Fund Balances,End of Year $ 1,2739033 $ 24,573 $ 347,963 $ 2819335 151 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2022 Special Revenue Funds Energy Litter Efficiency and Reduction Conservation SAFETEA-LU Underground Grant Block Grant Grant Utilities Revenues: Taxes $ $ $ $ Licenses and permits - Intergovernmental 43,482 Charges for services -Use of money and property (2,367) (16,050) (401,320) Contributions - - Developer participation - 24,832 Miscellaneous - 96 - Total Revenues 41,115 96 (16,050) (376,488) Expenditures: Current: General government - - Public safety-police - Public safety-fire protection - Community development - - Community services - - - Engineering and public works 39,041 9,361 Capital outlay - - 93,586 Total Expenditures 39,041 - - 102,947 Excess(Deficiency)of Revenues Over(Under)Expenditures 2,074 96 (16,050) (479,435) Other Financing Sources(Uses): Transfers in - - - Transfers out - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 2,074 96 (16,050) (479,435) Fund Balances, Beginning of Year 53,232 (96) 484,345 11,732,766 Fund Balances,End of Year $ 55,306 $ - $ 468,295 $ 11,253,331 152 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2022 (CONTINUED) Special Revenue Funds Citywide Integrated Infrastructure Proposition Waste Improvement 1B Management SB1 -TCEP Revenues: Taxes $ $ $ 1,819,593 $ Licenses and permits 49,800 - Intergovernmental 197,413 - 7,482,725 Charges for services - - Use of money and property (890,848) (9,468) (154,501) Contributions - Developer participation - - Miscellaneous 128,093 - Total Revenues (693,435) (9,468) 1,842,985 7,482,725 Expenditures: Current: General government - 650 Public safety-police - Public safety-fire protection - - Community development 200 - Community services - - - - Engineering and public works 43,638 1,360,917 - Capital outlay 255,706 - - 7,482,075 Total Expenditures 299,344 200 1,360,917 7,482,725 Excess(Deficiency)of Revenues Over(Under)Expenditures (992,779) (9,668) 482,068 - Other Financing Sources(Uses): Transfers in - Transfers out (218,390) Total Other Financing Sources (Uses) - - (218,390) - Net Change in Fund Balances (992,779) (9,668) 263,678 Fund Balances, Beginning of Year 26,034,677 301,015 4,409,703 Fund Balances,End of Year $ 2590419898 $ 291,347 $ 4,673,381 $ 153 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2022 Special Revenue Funds AD 91-2 Public Art State Grants Redemption- PD 85 Trust Fund Fund Day Canyon Maintenance Revenues: Taxes $ $ $ 25,881 $ 1,163,122 Licenses and permits - - Intergovernmental 70,631 - - Charges for services - 34,998 Use of money and property (19,665) (8,108) (2,768) 39,616 Contributions - Developer participation - Miscellaneous - - 128 Total Revenues (19,665) 62,523 23,113 1,237,864 Expenditures: Current: General government 12,154 21,171 - Public safety-police - - - Public safety-fire protection - - Community development 4,163 Community services - - Engineering and public works - 1,076,812 Capital outlay - 58,477 - 114,508 Total Expenditures 4,163 70,631 21,171 1,191,320 Excess(Deficiency)of Revenues Over(Under)Expenditures (23,828) (8,108) 1,942 46,544 Other Financing Sources(Uses): Transfers in - 94,309 Transfers out - Total Other Financing Sources (Uses) - - - 94,309 Net Change in Fund Balances (23,828) (8,108) 1,942 140,853 Fund Balances, Beginning of Year 582,795 78,873 3,191,388 Fund Balances,End of Year $ 5589967 $ (8,108) $ 80,815 $ 3,332,241 154 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2022 (CONTINUED) Special Revenue Funds Enhanced CFD 2000-03 Infrastructure Park CFD 2017-01 CFD 2018-01 Financing Maintenance No. Etiwanda Empire Lakes District Revenues: Taxes $ 549,209 $ 3,015 $ 216,023 $ Licenses and permits - - - Intergovernmental - Charges for services 40 - Use of money and property (19,315) (7,191) (53) Contributions - Developer participation Miscellaneous - - - - Total Revenues 529,934 3,015 208,832 (53) Expenditures: Current: General government 478,016 1,220 13,252 236,535 Public safety-police - - - - Public safety-fire protection - Community development - Community services - Engineering and public works - - Capital outlay 72,261 - - - Total Expenditures 550,277 1,220 13,252 236,535 Excess(Deficiency)of Revenues Over(Under)Expenditures (20,343) 1,795 195,580 (236,588) Other Financing Sources(Uses): Transfers in - - - Transfers out (83,310) (5,210) Total Other Financing Sources (Uses) - - (83,310) (5,210) Net Change in Fund Balances (20,343) 1,795 112,270 (241,798) Fund Balances, Beginning of Year 508,727 1,796 77,911 Fund Balances,End of Year $ 488,384 $ 3,591 $ 190,181 $ (241,798) 155 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2022 Capital Projects Fund Total Nonmajor Capital Governmental Projects Fund Funds Revenues: Taxes $ - $ 20,575,458 Licenses and permits - 129,772 Intergovernmental - 23,163,125 Charges for services - 126,455 Use of money and property (283,094) (3,981,345) Contributions - 1,641,149 Developer participation 24,832 Miscellaneous 1,150,677 Total Revenues (283,094) 42,830,123 Expenditures: Current: General government 3,130 1,676,979 Public safety-police - 213,552 Public safety-fire protection - 28,018 Community development 2,630 13,094,690 Community services - 4,007,887 Engineering and public works - 6,206,405 Capital outlay - 15,715,635 Total Expenditures 5,760 40,943,166 Excess(Deficiency)of Revenues Over(Under)Expenditures (288,854) 1,886,957 Other Financing Sources(Uses): Transfers in - 465,454 Transfers out - (759,357) Total Other Financing Sources (Uses) - (293,903) Net Change in Fund Balances (288,854) 1,593,054 Fund Balances, Beginning of Year 7,422,266 113,957,217 Fund Balances,End of Year $ 7,133,412 $ 115,550,271 156 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) GAS TAX YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 16,888,603 $ 16,888,603 $16,888,603 $ Resources(Inflows): Intergovernmental 8,071,100 8,198,140 7,666,916 (531,224) Use of money and property 172,870 168,690 (598,603) (767,293) Amounts Available for Appropriations 25,132,573 25,255,433 23,956,916 (1,298,517) Charges to Appropriation(Outflow): Engineering and public works 2,380,160 2,246,770 2,205,120 41,650 Capital outlay 9,159,960 10,147,050 8,597,649 1,549,401 Total Charges to Appropriations 11,540,120 12,393,820 10,802,769 1,591,051 Budgetary Fund Balance,June 30(Budgetary Basis) $13,592,453 $12,861,613 13,154,147 $ 292,534 Encumbrances 3,179,512 Budgetary Fund Balance,June 30(GAAP Basis) $16,333,659 157 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) RECREATION YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ (5,279) $ (5,279) $ (5,279) $ - Resources(Inflows): Use of money and property 10 (468) (478) Amounts Available for Appropriations (5,279) (5,269) (5,747) (478) Budgetary Fund Balance,June 30(Budgetary Basis) $ (5,279) $ (5,269) (5,747) $ (478) Encumbrances Budgetary Fund Balance,June 30(GAAP Basis) $ (5,747) 158 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) BEAUTIFICATION YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 597,252 $ 597,252 $ 597,252 $ - Resources(Inflows): Use of money and property 7,060 5,610 (20,455) (26,065) Amounts Available for Appropriations 604,312 602,862 576,797 (26,065) Charges to Appropriation (Outflow): Engineering and public works 790 790 790 Capital outlay 15,000 - - Total Charges to Appropriations 15,790 790 790 Budgetary Fund Balance,June 30(Budgetary Basis) $ 588,522 $ 602,072 576,007 $ (26,065) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 576,007 159 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LANDSCAPE MAINTENANCE DISTRICTS YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 21,782,848 $ 21,782,848 $21,782,848 $ - Resources(Inflows): Taxes 11,412,080 11,412,080 11,472,065 59,985 Licenses and permits 60,000 60,000 79,972 19,972 Charges for services 26,130 26,130 40,298 14,168 Use of money and property 327,600 287,390 (637,362) (924,752) Miscellaneous 300 300 294 (6) Transfers in (414,350) 419,400 371,145 (48,255) Amounts Available for Appropriations 33,194,608 33,988,148 33,109,260 (878,888) Charges to Appropriation(Outflow): Community development 12,241,820 12,084,490 10,819,621 1,264,869 Capital outlay 2,232,870 1,474,210 1,192,689 281,521 Total Charges to Appropriations 14,474,690 13,558,700 12,012,310 1,546,390 Budgetary Fund Balance,June 30(Budgetary Basis) $ 18,719,918 $ 20,429,448 21,096,950 $ 667,502 Encumbrances 193,982 Budgetary Fund Balance,June 30(GAAP Basis) $21,290,932 160 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PEDESTRIAN GRANT YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ (9,237) $ (9,237) $ (9,237) $ Resources(Inflows): Intergovernmental 398,550 - - - Amounts Available for Appropriations 389,313 (9,237) (9,237) Charges to Appropriation(Outflow): Capital outlay 398,550 - Total Charges to Appropriations 398,550 - - - Budgetary Fund Balance,June 30(Budgetary Basis) $ (9,237) $ (9,237) (9,237) $ - Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (9,237) 161 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 1,362,602 $ 1,362,602 $ 1,362,602 $ - Resources(Inflows): Intergovernmental 1,688,390 3,511,310 2,260,694 (1,250,616) Use of money and property - - (11,811) (11,811) Miscellaneous 150,000 75,000 34,764 (40,236) Amounts Available for Appropriations 3,200,992 4,948,912 3,646,249 (1,302,663) Charges to Appropriation(Outflow): Community development 1,838,390 3,586,310 3,486,890 99,420 Total Charges to Appropriations 1,838,390 3,586,310 3,486,890 99,420 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,362,602 $ 1,362,602 159,359 $ (1,203,243) Encumbrances 1,183,555 Budgetary Fund Balance,June 30(GAAP Basis) $ 1,342,914 162 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT ADMINISTRATION YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 833,442 $ 833,442 $ 833,442 $ Resources(Inflows): Use of money and property 8,220 6,720 (31,490) (38,210) Miscellaneous 960,180 960,180 960,180 - Amounts Available for Appropriations 1,801,842 1,800,342 1,762,132 (38,210) Charges to Appropriation(Outflow): General government 1,064,140 1,065,270 892,879 172,391 Total Charges to Appropriations 1,064,140 1,065,270 892,879 172,391 Budgetary Fund Balance,June 30(Budgetary Basis) $ 737,702 $ 735,072 869,253 $ 134,181 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 869,253 163 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 579,608 $ 579,608 $ 579,608 $ - Resources(Inflows): Intergovernmental 232,440 252,670 248,829 (3,841) Use of money and property 7,570 5,330 (16,934) (22,264) Amounts Available for Appropriations 819,618 837,608 811,503 (26,105) Charges to Appropriation(Outflow): General government 20,780 20,550 19,402 1,148 Capital outlay 313,740 343,740 325,039 18,701 Total Charges to Appropriations 334,520 364,290 344,441 19,849 Budgetary Fund Balance,June 30(Budgetary Basis) $ 485,098 $ 473,318 467,062 $ (6,256) Encumbrances 71,610 Budgetary Fund Balance,June 30(GAAP Basis) $ 538,672 164 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) MASI COMMERCE CENTER YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 312,241 $ 312,241 $ 312,241 $ - Resources(Inflows): Use of money and property 180 1,970 46 (1,924) Amounts Available for Appropriations 312,421 314,211 312,287 (1,924) Charges to Appropriation (Outflow): General government 180 180 180 - Transfers out - 312,900 312,107 793 Total Charges to Appropriations 180 313,080 312,287 793 Budgetary Fund Balance,June 30(Budgetary Basis) $ 312,241 $ 1,131 - $ (1,131) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 165 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) MEASUREI YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $4,387,568 $ 4,387,568 $4,387,568 $ - Resources(Inflows): Intergovernmental 3,570,290 3,570,290 4,558,998 988,708 Use of money and property 38,340 43,880 (231,450) (275,330) Amounts Available for Appropriations 7,996,198 8,001,738 8,715,116 713,378 Charges to Appropriation(Outflow): Engineering and public works 1,638,400 1,629,530 1,626,583 2,947 Capital outlay 1,460,000 1,433,740 831,458 602,282 Total Charges to Appropriations 3,098,400 3,063,270 2,458,041 605,229 Budgetary Fund Balance,June 30(Budgetary Basis) $4,897,798 $ 4,938,468 6,257,075 $ 1,318,607 Encumbrances 395,533 Budgetary Fund Balance,June 30(GAAP Basis) $ 6,652,608 166 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIBRARY SERVICES YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 10,526,597 $ 10,526,597 $10,526,597 $ Resources(Inflows): Taxes 5,167,540 5,355,950 5,326,550 (29,400) Intergovernmental 18,000 2,219,950 28,519 (2,191,431) Charges for services 84,480 55,580 51,119 (4,461) Use of money and property 98,200 89,160 (573,710) (662,870) Contributions 573,080 570,030 1,641,149 1,071,119 Miscellaneous 57,500 74,400 27,122 (47,278) Amounts Available for Appropriations 16,525,397 18,891,667 17,027,346 (1,864,321) Charges to Appropriation(Outflow): Community services 5,055,490 4,570,350 3,943,369 626,981 Capital outlay 1,275,000 663,920 359,185 304,735 Transfers out - 140,340 140,340 - Total Charges to Appropriations 6,330,490 5,374,610 4,442,894 931,716 Budgetary Fund Balance,June 30(Budgetary Basis) $10,194,907 $13,517,057 12,584,452 $ (932,605) Encumbrances 93,507 Budgetary Fund Balance,June 30(GAAP Basis) $12,677,959 167 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PUBLIC SAFETY GRANTS YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $1,093,780 $ 1,093,780 $ 1,093,780 $ Resources(Inflows): Intergovernmental 550,180 514,080 511,262 (2,818) Use of money and property 910 1,020 (57,470) (58,490) Amounts Available for Appropriations 1,644,870 1,608,880 1,547,572 (61,308) Charges to Appropriation(Outflow): Public safety-police 314,280 472,710 213,552 259,158 Public safety-fire protection 26,730 28,020 28,018 2 Capital outlay 98,820 56,220 35,782 20,438 Total Charges to Appropriations 439,830 556,950 277,352 279,598 Budgetary Fund Balance,June 30(Budgetary Basis) $1,205,040 $ 1,051,930 1,270,220 $ 218,290 Encumbrances 2,813 Budgetary Fund Balance,June 30(GAAP Basis) $ 1,273,033 168 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) USED OIL RECYCLING YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 18,982 $ 18,982 $ 18,982 $ - Resources(Inflows): Intergovernmental 19,100 19,100 23,326 4,226 Use of money and property 440 160 (869) (1,029) Amounts Available for Appropriations 38,522 38,242 41,439 3,197 Charges to Appropriation (Outflow): Community development 50,200 20,020 16,866 3,154 Total Charges to Appropriations 50,200 20,020 16,866 3,154 Budgetary Fund Balance,June 30(Budgetary Basis) $ (11,678) $ 18,222 24,573 $ 6,351 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 24,573 169 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIBRARY SERVICES GRANTS YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 379,586 $ 379,586 $ 379,586 $ Resources(Inflows): Intergovernmental 20,000 78,150 70,330 (7,820) Use of money and property 3,020 2,480 (12,850) (15,330) Amounts Available for Appropriations 402,606 460,216 437,066 (23,150) Charges to Appropriation(Outflow): Community services 37,430 88,080 89,103 (1,023) Total Charges to Appropriations 37,430 88,080 89,103 (1,023) Budgetary Fund Balance,June 30(Budgetary Basis) $ 365,176 $ 372,136 347,963 $ (24,173) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 347,963 170 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LITTER REDUCTION GRANT YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 53,232 $ 53,232 $ 53,232 $ - Resources(Inflows): Intergovernmental 43,240 43,240 43,482 242 Use of money and property - - (2,367) (2,367) Amounts Available for Appropriations 96,472 96,472 94,347 (2,125) Charges to Appropriation(Outflow): Engineering and public works 59,690 54,180 39,041 15,139 Total Charges to Appropriations 59,690 54,180 39,041 15,139 Budgetary Fund Balance,June 30(Budgetary Basis) $ 36,782 $ 42,292 55,306 $ 13,014 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 55,306 171 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SAFETEA-LU GRANT YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 484,345 $ 484,345 $ 484,345 $ Resources(Inflows): Use of money and property 2,140 4,560 (16,050) (20,610) Amounts Available for Appropriations 486,485 488,905 468,295 (20,610) Budgetary Fund Balance,June 30(Budgetary Basis) $ 486,485 $ 488,905 468,295 $ (20,610) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 468,295 172 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) UNDERGROUND UTILITIES YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $11,732,766 $ 11,732,766 $11,732,766 $ - Resources(Inflows): Use of money and property 131,020 117,510 (401,320) (518,830) Developer participation 90,000 - 24,832 24,832 Amounts Available for Appropriations 11,953,786 11,850,276 11,356,278 (493,998) Charges to Appropriation(Outflow): Engineering and public works 8,330 9,370 9,361 9 Capital outlay - 93,630 93,586 44 Total Charges to Appropriations 8,330 103,000 102,947 53 Budgetary Fund Balance,June 30(Budgetary Basis) $11,945,456 $ 11,747,276 11,253,331 $ (493,945) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $11,253,331 173 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CITYWIDE INFRASTRUCTURE IMPROVEMENT YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $26,034,677 $26,034,677 $26,034,677 $ - Resources(Inflows): Intergovernmental 900,000 75,000 197,413 122,413 Use of money and property 298,890 259,530 (890,848) (1,150,378) Developer participation 2,000 - - Amounts Available for Appropriations 27,235,567 26,369,207 25,341,242 (1,027,965) Charges to Appropriation(Outflow): Engineering and public works 43,800 78,910 47,143 31,767 Capital outlay 120,000 276,300 256,766 19,534 Total Charges to Appropriations 163,800 355,210 303,909 51,301 Budgetary Fund Balance,June 30(Budgetary Basis) $27,071,767 $26,013,997 25,037,333 $ (976,664) Encumbrances 4,565 Budgetary Fund Balance,June 30(GAAP Basis) $25,041,898 174 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PROPOSITION 1 B YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 301,015 $ 301,015 $ 301,015 $ Resources(Inflows): Use of money and property 3,020 2,650 (9,468) (12,118) Amounts Available for Appropriations 304,035 303,665 291,547 (12,118) Charges to Appropriation(Outflow): Community development 200 200 200 - Total Charges to Appropriations 200 200 200 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 303,835 $ 303,465 291,347 $ (12,118) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 291,347 175 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) INTEGRATED WASTE MANAGEMENT YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 4,409,703 $ 4,409,703 $ 4,409,703 $ - Resources(Inflows): Taxes 1,675,160 1,675,160 1,819,593 144,433 Licenses and permits 40,700 40,700 49,800 9,100 Use of money and property 42,660 37,410 (154,501) (191,911) Miscellaneous 75,000 75,000 128,093 53,093 Amounts Available for Appropriations 6,243,223 6,237,973 6,252,688 14,715 Charges to Appropriation(Outflow): Engineering and public works 1,375,700 1,402,820 1,360,917 41,903 Transfers out 218,390 218,390 218,390 - Total Charges to Appropriations 1,594,090 1,621,210 1,579,307 41,903 Budgetary Fund Balance,June 30(Budgetary Basis) $ 4,649,133 $ 4,616,763 4,673,381 $ 56,618 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 4,673,381 176 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SB1 -TCEP YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ - $ - $ - $ Resources(Inflows): Intergovernmental 12,500,650 12,500,650 7,482,725 (5,017,925) Amounts Available for Appropriations 12,500,650 12,500,650 7,482,725 (5,017,925) Charges to Appropriation(Outflow): General government 650 650 650 - Capital outlay 12,500,000 12,500,000 8,798,082 3,701,918 Total Charges to Appropriations 12,500,650 12,500,650 8,798,732 3,701,918 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - (1,316,007) $ (1,316,007) Encumbrances 1,316,007 Budgetary Fund Balance,June 30(GAAP Basis) $ - 177 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PUBLIC ART TRUST YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 582,795 $ 582,795 $ 582,795 $ Resources(Inflows): Use of money and property 4,680 5,480 (19,665) (25,145) Developer participation 100,000 50,000 - (50,000) Amounts Available for Appropriations 687,475 638,275 563,130 (75,145) Charges to Appropriation(Outflow): Community development 45,040 47,540 17,714 29,826 Total Charges to Appropriations 45,040 47,540 17,714 29,826 Budgetary Fund Balance,June 30(Budgetary Basis) $ 642,435 $ 590,735 545,416 $ (45,319) Encumbrances 13,551 Budgetary Fund Balance,June 30(GAAP Basis) $ 558,967 178 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) STATE GRANT FUNDS YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ - $ - $ - $ Resources(Inflows): Intergovernmental 2,686,760 3,062,490 70,631 (2,991,859) Use of money and property - - (8,108) (8,108) Amounts Available for Appropriations 2,686,760 3,062,490 62,523 (2,999,967) Charges to Appropriation(Outflow): General government - 375,720 12,154 363,566 Capital outlay 2,686,760 2,686,770 2,686,761 9 Total Charges to Appropriations 2,686,760 3,062,490 2,698,915 363,575 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - (2,636,392) $ (2,636,392) Encumbrances 2,628,284 Budgetary Fund Balance,June 30(GAAP Basis) $ (8,108) 179 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) AD 91-2 REDEMPTION-DAY CANYON YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 78,873 $ 78,873 $ 78,873 $ - Resources(Inflows): Taxes 26,640 26,640 25,881 (759) Use of money and property 710 680 (2,768) (3,448) Amounts Available for Appropriations 106,223 106,193 101,986 (4,207) Charges to Appropriation (Outflow): General government 26,170 20,820 21,171 (351) Total Charges to Appropriations 26,170 20,820 21,171 (351) Budgetary Fund Balance,June 30(Budgetary Basis) $ 80,053 $ 85,373 80,815 $ (4,558) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 80,815 180 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PD 85 MAINTENANCE YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 3,191,388 $ 3,191,388 $ 3,191,388 $ - Resources(Inflows): Taxes 1,162,090 1,162,090 1,163,122 1,032 Charges for services 21,590 21,590 34,998 13,408 Use of money and property 156,000 129,070 39,616 (89,454) Miscellaneous 100 100 128 28 Transfers in 122,470 120,480 94,309 (26,171) Amounts Available for Appropriations 4,653,638 4,624,718 4,523,561 (101,157) Charges to Appropriation(Outflow): Engineering and public works 1,191,360 1,174,190 1,076,812 97,378 Capital outlay 1,080,000 530,130 163,488 366,642 Total Charges to Appropriations 2,271,360 1,704,320 1,240,300 464,020 Budgetary Fund Balance,June 30(Budgetary Basis) $ 2,382,278 $ 2,920,398 3,283,261 $ 362,863 Encumbrances 48,980 Budgetary Fund Balance,June 30(GAAP Basis) $ 3,332,241 181 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2000-03 PARK MAINTENANCE YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 508,727 $ 508,727 $ 508,727 $ - Resources(Inflows): Taxes 550,180 550,180 549,209 (971) Charges for services - - 40 40 Use of money and property 3,940 3,570 (19,315) (22,885) Amounts Available for Appropriations 1,062,847 1,062,477 1,038,661 (23,816) Charges to Appropriation(Outflow): General government 516,720 497,420 478,016 19,404 Capital outlay - 72,270 72,261 9 Total Charges to Appropriations 516,720 569,690 550,277 19,413 Budgetary Fund Balance,June 30(Budgetary Basis) $ 546,127 $ 492,787 488,384 $ (4,403) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 488,384 182 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2017-01 NO. ETIWANDA YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 1,796 $ 1,796 $ 1,796 $ - Resources(Inflows): Taxes 3,020 3,020 3,015 (5) Amounts Available for Appropriations 4,816 4,816 4,811 (5) Charges to Appropriation(Outflow): General government 1,220 1,220 1,220 - Total Charges to Appropriations 1,220 1,220 1,220 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 3,596 $ 3,596 3,591 $ (5) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 3,591 183 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2018-01 EMPIRE LAKES YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 77,911 $ 77,911 $ 77,911 $ - Resources(Inflows): Taxes 216,730 216,730 216,023 (707) Use of money and property 910 1,620 (7,191) (8,811) Amounts Available for Appropriations 295,551 296,261 286,743 (9,518) Charges to Appropriation(Outflow): General government 36,350 36,850 13,252 23,598 Transfers out 83,310 83,310 83,310 - Total Charges to Appropriations 119,660 120,160 96,562 23,598 Budgetary Fund Balance,June 30(Budgetary Basis) $ 175,891 $ 176,101 190,181 $ 14,080 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 190,181 184 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ENHANCED INFRASTRUCTURE FINANCING DISTRICT YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ $ - $ - $ - Resources(Inflows): Use of money and property - - (53) (53) Amounts Available for Appropriations - (53) (53) Charges to Appropriation(Outflow): General government - 241,620 243,722 (2,102) Transfers out 5,210 5,210 Total Charges to Appropriations 246,830 248,932 (2,102) Budgetary Fund Balance,June 30(Budgetary Basis) $ $ (246,830) (248,985) $ (2,155) Encumbrances 7,187 Budgetary Fund Balance,June 30(GAAP Basis) $ (241,798) 185 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CAPITAL PROJECTS FUND YEAR ENDED JUNE 30,2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 7,422,266 $ 7,422,266 $ 7,422,266 $ Resources(Inflows): Use of money and property 92,560 75,360 (283,094) (358,454) Amounts Available for Appropriations 7,514,826 7,497,626 7,139,172 (358,454) Charges to Appropriation(Outflow): General government 3,130 3,130 3,130 - Community development 2,630 2,630 2,630 - Total Charges to Appropriations 5,760 5,760 5,760 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 7,509,066 $ 7,491,866 7,133,412 $ (358,454) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 7,133,412 186 CITY OF RANCHO CUCAMONGA Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Equipment and Vehicle Replacement - Established to account for the accumulation of user charges to various City departments and the costs associated with replacing the City's vehicles. Computer Equipment/Technology Replacement - Established to account for the accumulation of resources and the costs associated with replacing the City's data processing equipment and maintaining current technology. 187 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30,2022 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Assets: Current: Cash and investments $ 2,368,487 $ 7,796,523 $ 10,165,010 Receivables: Accounts - 29,020 29,020 Accrued interest 5,093 9,789 14,882 Prepaid costs - 226,317 226,317 Total Current Assets 2,373,580 8,061,649 10,435,229 Noncurrent: Capital assets,not being depreciated/amortized - 63,568 63,568 Capital assets,net of accumulated depreciation/amortization 2,689,051 1,421,315 4,110,366 Total Noncurrent Assets 2,689,051 1,484,883 4,173,934 Total Assets 5,062,631 9,546,532 14,609,163 Liabilities: Current: Accounts payable 108,901 96,128 205,029 Accrued interest - 7,065 7,065 Financed purchases - 507,340 507,340 Total Current Liabilities 108,901 610,533 719,434 Total Liabilities 108,901 610,533 719,434 Net Position: Net invested in capital assets 2,689,051 977,543 3,666,594 Unrestricted 2,264,679 7,958,456 10,223,135 Total Net Position $ 4,953,730 $ 8,935,999 $ 13,889,729 188 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2022 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Operating Revenues: Interdepartmental charges $ 1,149,270 $ 752,320 $ 1,901,590 Total Operating Revenues 1,149,270 752,320 1,901,590 Operating Expenses: Maintenance and operations 348,444 177,831 526,275 Contractual services - 219,719 219,719 Depreciation expense 775,313 855,411 1,630,724 Total Operating Expenses 1,123,757 1,252,961 2,376,718 Operating Income(Loss) 25,513 (500,641) (475,128) Nonoperating Revenues(Expenses): Interest revenue (91,713) (325,242) (416,955) Interest expense (32,269) (32,269) Total Nonoperating Revenues(Expenses) (91,713) (357,511) (449,224) Income(Loss)Before Transfers (66,200) (858,152) (924,352) Transfers in 300,000 5,535,650 5,835,650 Changes in Net Position 233,800 4,677,498 4,911,298 Net Position: Beginning of Year 4,719,930 4,258,501 8,978,431 End of Fiscal Year $ 4,953,730 $ 8,935,999 $ 13,889,729 189 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2022 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Cash Flows from Operating Activities: Cash received from interfund services provided $ 1,149,270 $ 752,320 $ 1,901,590 Cash paid to suppliers for goods and services (304,580) (174,951) (479,531) Net Cash Provided(Used)by Operating Activities 844,690 577,369 1,422,059 Cash Flows from Non-Capital Financing Activities: Cash transfers in 300,000 5,535,650 5,835,650 Net Cash Provided(Used)by Non-Capital Financing Activities 300,000 5,535,650 5,835,650 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (238,604) (128,026) (366,630) Principal paid on capital debt (488,349) (488,349) Interest paid on capital debt (38,981) (38,981) Net Cash Provided(Used)by Capital and Related Financing Activities (238,604) (655,356) (893,960) Cash Flows from Investing Activities: Interest received (93,329) (329,074) (422,403) Net Cash Provided(Used)by Investing Activities (93,329) (329,074) (422,403) Net Increase(Decrease)in Cash and Cash Equivalents 812,757 5,128,589 5,941,346 Cash and Cash Equivalents at Beginning of Year 1,555,730 2,667,934 4,223,664 Cash and Cash Equivalents at End of Year $ 2,368,487 $ 7,796,523 $ 10,165,010 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ 25,513 $ (500,641) $ (475,128) Adjustments to Reconcile Operating Income(loss) Net Cash Provided(used)by Operating Activities: Depreciation 775,313 855,411 1,630,724 (Increase)decrease in prepaid expense - 140,685 140,685 Increase(decrease)in accounts payable 43,864 81,914 125,778 Total Adjustments 819,177 1,078,010 1,897,187 Net Cash Provided(Used)by Operating Activities $ 844,690 $ 577,369 $ 1,422,059 Non-Cash Investing,Capital,and Financing Activities: There was no non-cash investing,capital and financing activities in the current fiscal year. 190 CITY OF RANCHO CUCAMONGA Custodial Funds Custodial funds are used to account for assets held by the City as trustee or agent for individuals, private organizations, or other governmental units, and/or other funds. Community Facilities District 2004-01 Fund — Established to account for the Community Facilities District No. 2004-01 special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. Assessment District 93-1 Masi Commerce Center Fund — Established to account for the Assessment District No. 93-1 assessment revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. Community Facilities District 2000-01 South Etiwanda Fund — Established to account for the Community Facilities District No. 2000-01 special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. Community Facilities District 2000-02 Rancho Cucamonga Corporate Park Fund — Established to account for the Community Facilities District No. 2000-02 special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. Community Facilities District 2000-03 Rancho Summit Fund — Established to account for the Community Facilities District No. 2000-03 special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. Community Facilities District 2001-01 Series A Fund — Established to account for the Community Facilities District No. 2001-01 Series A special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. CommunitV Facilities District 2001-01 Series B Fund — Established to account for the Community Facilities District No. 2001-01 Series B special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. Community Facilities District 2003-01 Series A Fund — Established to account for the Community Facilities District No. 2003-01 Series A special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. Community Facilities District 2003-01 Series B Fund — Established to account for the Community Facilities District No. 2003-01 Series B special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. CommunitV Facilities District 2006-01 Fund — Established to account for the Community Facilities District No. 2006-01 special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. Community Facilities District 2006-02 Fund — Established to account for the Community Facilities District No. 2006-02 special tax revenues which are restricted repayment of the annual principal and semiannual interest payment on the bonds. 191 CITY OF RANCHO CUCAMONGA,CALIFORNIA COMBINING STATEMENT OF FIDUCIARY NET POSITION ALL CUSTODIAL FUNDS YEAR ENDED JUNE 30,2022 AD 93-1 Masi Commerce CFD 2004-01 Center CFD 2000-01 CFD 2000-02 Assets: Cash and investments $ 2,953,561 $ $ 82,854 $ 454,713 Receivables: Accounts - - - Taxes 32,310 667 577 Accrued interest 6,794 167 731 Restricted assets: Cash and investments with fiscal agents 1,187,701 22,758 208,975 Total Assets 4,180,366 - 106,446 664,996 Net Position: Restricted for organizations and other governments 4,180,366 106,446 664,996 Total Net Position $ 4,180,366 $ - $ 106,446 $ 664,996 192 CITY OF RANCHO CUCAMONGA,CALIFORNIA COMBINING STATEMENT OF FIDUCIARY NET POSITION ALL CUSTODIAL FUNDS YEAR ENDED JUNE 30,2022 (CONTINUED) CFD 2001-01 CFD 2001-01 CFD 2003-01 CFD 2000-03 Series A Series B Series A Assets: Cash and investments $ 517,946 $ 570,371 $ 57,859 $ 996,858 Receivables: Accounts - - - - Taxes 3,081 7,145 - 546 Accrued interest 960 10 - 1,732 Restricted assets: Cash and investments with fiscal agents 260,827 303,647 29,481 1,417,397 Total Assets 782,814 881,173 87,340 2,416,533 Net Position: Restricted for organizations and other governments 782,814 881,173 87,340 2,416,533 Total Net Position $ 782,814 $ 881,173 $ 87,340 $ 2,416,533 193 CITY OF RANCHO CUCAMONGA,CALIFORNIA COMBINING STATEMENT OF FIDUCIARY NET POSITION ALL CUSTODIAL FUNDS YEAR ENDED JUNE 30,2022 Total CFD 2003-01 Custodial Series B CFD 2006-01 CFD 2006-02 Funds Assets: Cash and investments $ 203,135 $ 330,759 $ 217,144 $ 6,385,200 Receivables: Accounts - - 2,016 2,016 Taxes - 1,932 1,008 47,266 Accrued interest 397 731 470 11,992 Restricted assets: Cash and investments with fiscal agents 132,511 130,519 78,313 3,772,129 Total Assets 336,043 463,941 298,951 10,218,603 Net Position: Restricted for organizations and other governments 336,043 463,941 298,951 10,218,603 Total Net Position $ 336,043 $ 463,941 $ 298,951 $ 10,218,603 194 THIS PAGE INTENTIONALLY LEFT BLANK 195 CITY OF RANCHO CUCAMONGA,CALIFORNIA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL CUSTODIAL FUNDS YEAR ENDED JUNE 30,2022 AD 93-1 Masi Commerce CFD 2004-01 Center CFD 2000-01 CFD 2000-02 Additions: Collection of special taxes $ 2,356,765 $ - $ 74,920 $ 517,806 Investment earnings: Net change in fair value of investments (120,883) 2,257 (3,333) (18,367) Interest 11,886 - 265 1,096 Total Additions 2,247,768 2,257 71,852 500,535 Deductions: Administrative expenses 31,990 610 19,314 52,444 Contractual services - 1,158 - - Interest expense 1,115,604 13,747 6,679 65,117 Principal expense 1,232,000 440,000 46,000 424,000 Payments to city - 285,537 - - Total Deductions 2,379,594 741,052 71,993 541,561 Net Increase(Decrease)in Fiduciary Net Position (131,826) (738,795) (141) (41,026) Net Position: Beginning of fiscal year,as originally reported (23,241,131) 289,755 (137,840) (1,664,515) Restatements 27,553,323 449,040 244,427 2,370,537 Beginning of fiscal year,as restated 4,312,192 738,795 106,587 706,022 Net Position-End of the Year $ 4,180,366 $ - $ 106,446 $ 664,996 196 CITY OF RANCHO CUCAMONGA,CALIFORNIA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL CUSTODIAL FUNDS YEAR ENDED JUNE 30,2022 (CONTINUED) CFD 2001-01 CFD 2001-01 CFD 2003-01 CFD 2000-03 Series A Series B Series A Additions: Collection of special taxes $ 564,585 $ 671,477 $ 61,467 $ 1,200,915 Investment earnings: Net change in fair value of investments (21,240) (23,302) (2,383) (41,056) Interest 1,667 138 14 3,324 Total Additions 545,012 648,313 59,098 1,163,183 Deductions: Administrative expenses 30,930 57,894 1,694 38,650 Contractual services - - - - Interest expense 217,697 185,115 17,928 585,156 Principal expense 298,000 409,000 40,000 525,000 Payments to city - - - - Total Deductions 546,627 652,009 59,622 1,148,806 Net Increase(Decrease)in Fiduciary Net Position (1,615) (3,696) (524) 14,377 Net Position: Beginning of fiscal year,as originally reported (5,020,061) (4,597,385) (443,264) (9,468,698) Restatements 5,804,490 5,482,254 531,128 11,870,854 Beginning of fiscal year,as restated 784,429 884,869 87,864 2,402,156 Net Position-End of the Year $ 782,814 $ 881,173 $ 87,340 $ 2,416,533 197 CITY OF RANCHO CUCAMONGA,CALIFORNIA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL CUSTODIAL FUNDS YEAR ENDED JUNE 30,2022 Total CFD 2003-01 Custodial Series B CFD 2006-01 CFD 2006-02 Funds Additions: Collection of special taxes $ 205,064 $ 291,253 $ 185,818 $ 6,130,070 Investment earnings: Net change in fair value of investments (8,168) (13,509) (8,904) (258,888) Interest 647 1,271 804 21,112 Total Additions 197,543 279,015 177,718 5,892,294 Deductions: Administrative expenses 11,700 20,174 20,125 285,525 Contractual services - - - 1,158 Interest expense 95,100 119,599 71,070 2,492,812 Principal expense 107,000 136,000 82,000 3,739,000 Payments to city - - - 285,537 Total Deductions 213,800 275,773 173,195 6,804,032 Net Increase(Decrease)in Fiduciary Net Position (16,257) 3,242 4,523 (911,738) Net Position: Beginning of fiscal year,as originally reported (1,939,727) (2,698,502) (1,583,469) (50,504,837) Restatements 2,292,027 3,159,201 1,877,897 61,635,178 Beginning of fiscal year,as restated 352,300 460,699 294,428 11,130,341 Net Position-End of the Year $ 336,043 $ 463,941 $ 298,951 $ 10,218,603 198 City of Rancho Cucamonga Annual Comprehensive Financial Report June 30, 2022 Statistical Section Certain schedules recommended for inclusion in Annual Comprehensive Financial Reports of Municipalities by the Government Finance Officers Association have been omitted from this report. The omission of such schedules was made only after careful consideration of the merits of each recommended schedule by City management. 199 THIS PAGE INTENTIONALLY LEFT BLANK 200 Mrr This part of the City of Rancho Cucamonga's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the City's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes. Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstandina debt and the City's abilitv to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments. Operating Information These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. 201 O U)((00 O N (VO 0, N O O O LO O N 0 (O 00 LO . 0 0 N 0) 0(0 LO 00 r.-00 V 00 1`L) O M Cl) Cl) 0) N 0 LO 0) 'IT O LO 00 N N N 00(O cc 0 O 0 0 N 00 V O N N N- M C V ODCMO (O Cl) I` M V) V) V) V) V) V) LO 0 0 � (O r-0 0) (O LO N O V(O 0 0)Cl) 0) IT N M V V 0 f` 0 M 0) L 0) I--N 00 r- 00 O 0 (O LO N Lo V co (O V V Ln LO 00 0) 0) N N V N M O 0 V 00(+7 cc d) N V (O N N O M Cl) Cl) r r- N � N N V) V) EA V) V) V) N V Cl) N n -It (4 N LO I-- -It OD M M M h NV)LO (O to 0 N O V f` 110 LO N M h (Q(Q O 0) 0)Cl) 0) 0 LO M 00 r 0 LO 0 0) 0 0) 0 (0 h (D (0 O(0 V Cl M N 0 M c f`0 V N O 0 OD N N a M N O M V 0)M n N Ih N V) V) V) V) V) V) 0) r- 00 MP ((D O LOON V CO (O N N M M O (0 O 0 N N LO N 0) (o LO LO 0 M r-- LO (D LO (O W V Cl) r 0) N N r- LO O � d)c0 (O N M V O 0000 N O M (00 V N I- M n M N V3 V) V) V) V) V) 0) (O N h 0) Cl)N V 00 0)V N (O OD f` (0 00 M 0 0) V 0 N M h M M M N 0 LLB r O M 0) Nn Q) V OM r M N h V O 0 M p 1- r 00 r V 0) 0 LO LO V n C (V N o0(0 I` N m 1-LO N M N V N r I f� N M N 00 M N N } V) V) V) V) V) V) a U z LL O O O M N Cl Ico tOLOO LO Q 0 (0 (O 0) M(O 0 00 d)r LO 0 p 0 00 O Cl) N r­ M 0) O 0 co N co C LO n O M (0 I-O LO N V 00 Q C N d) V(O O M LO Q) M LL) 0) 00_ y a0 M O N M V 0000 M N � E U V O N N V) V) V) V) Vl V) O a y o _ LL N O V M CD0 O in M 0 M h N LO M r n C M ZQaN 0) N Cl)1- M (O 0 r-- M 00 N-It Q) (O 0 (3NOONC rO w Cl) LO (D LL N J U N 00 M 0 N C W CON 0 z n __ __ V) V) V) V) V) V) H C) ((00 00 r- CO (VO jZ M N_ M OZ 7 0 �(0 � V d) M d)0 00 N N� CO) O -ItO (O 0 (O N LO O O 0 LO 00 0 0 (O 00 (O N cc, N cc) 0 LO LO d) O cc) N Mf` 0 N VM NOCO co(O N Ln N (O I-- Cl) N 00 Cl) N V) V) V) co V) V) O M N V LO LO V V h LP) I- M r N co 1L7 C) 0 0 _ 0 (D 0) LO O 00 I` LO O V(D _ CO N 00 CO O O co V 0 N co L co co 00 N V LOO Q) 0�0 N O O O 000 Cl) O LOO 7 000 N 7 OD co N 00 Cl) Cl V) V) V) V) V) V) r- LO 0 (b LO � 0 N N M I-. 00 Un u') O N 0) N 0 00 00 LO O f� M N M C LO Il M h oc N Cl) O V 00 N co 0 N LP) M O N W �N ccc � ItN V CO O2 L. 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Z N M V co 208 CITY OF RANCHO CUCAMONGA Principal Property Taxpayers Current Year and Nine Years Ago 2022 2013 Percent of Percent of Total City Total City Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Rancho Mall LLC $ 352,982,656 1.16% $ - 0.00% Homecoming at Terra Vista LLC 305,021,464 1.01% - 0.00% Prologis/Catellus 194,109,425 0.64% - 0.00% Bridge Point Rancho Cucamonga LLC 193,094,042 0.64% - 0.00% Frito Lay Inc 170,797,179 0.56% - 0.00% Solamonte Owner LLC 141,755,835 0.47% - 0.00% GSIC II Cucamonga Owner 130,179,950 0.43% - 0.00% Schlosser Forge Company 125,253,665 0.41% - 0.00% Goodman Rancho SPE LLC 119,246,969 0.39% - 0.00% EQR-Fanwell 2007 LP 112,417,951 0.37% 88,000,000 0.45% Victoria Gardens Mall LLC - 0.00% 239,479,427 1.22% Homecoming I At Terra Vista LLC - 0.00% 123,791,701 0.63% T-Napf Meritage Ownership LLC - 0.00% 117,364,505 0.60% Catellus Development Corporation - 0.00% 101,216,200 0.52% Frito Lay North America Inc - 0.00% 96,378,370 0.49% Knickerbocker Properties Inc XLVII - 0.00% 83,181,598 0.42% THM ENT LLC - 0.00% 79,914,830 0.41% PPF MF 9200 Milliken Avenue LP - 0.00% 78,646,980 0.40% WNG Rancho Cucamonga 496 LLC - 0.00% 76,092,892 0.39% $ 1,844,859,136 6.08% $ 1,084,066,503 5.53% 209 CITY OF RANCHO CUCAMONGA Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Received Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 2013 $ 93,235,913 $ 85,131,812 91.31% N/A $ 85,131,812 91.31% 2014 95,016,035 93,063,071 97.94% N/A 93,063,071 97.94% 2015 100,428,866 98,457,115 98.04% N/A 98,457,115 98.04% 2016 105,120,614 103,112,427 98.09% N/A 103,112,427 98.09% 2017 108,069,418 107,991,619 99.93% N/A 107,991,619 99.93% 2018 112,950,393 114,778,741 101.62% N/A 114,778,741 101.62% 2019 119,970,594 122,206,002 101.86% N/A 122,206,002 101.86% 2020 126,916,757 128,333,882 101.12% N/A 128,333,882 101.12% 2021 136,728,688 135,393,834 99.02% N/A 135,393,834 99.02% 2022 142,994,120 143,427,161 100.30% N/A 143,427,161 100.30% Note: Data provided by the San Bernardino County Auditor-Controller for collection of prior year taxes does not segregate the information by fiscal year. Therefore, the City is not able to provide this information in the above schedule. Source: San Bernardino County Auditor-Controller/Treasurer/Tax Collector 210 CITY OF RANCHO CUCAMONGA Principal Sales Tax Remitters' Current Year and Nine Years Ago 2022 2013 Business Name Business Category Business Name Business Category Apple Electronics/Appliance Stores Ameron International Contractors Bass Pro Shops Outdoor World Sporting Goods/Bike Stores Apple Electronics/Appliance Stores Best Buy Electronics/Appliance Stores Bass Pro Shops Outdoor World Sporting Goods/Bike Stores Chevron Service Stations Best Buy Electronics/Appliance Stores Circle K Service Stations Chevron Service Stations Costco Discount Department Stores Circle K Service Stations Home Depot Building Materials Circle K 76 Service Stations Huttig Building Materials Costco Discount Department Stores ICL Performance Products Drugs/Chemicals Day Creek Arco Service Stations Living Spaces Furniture Home Furnishings Day Creek Shell Service Stations Lowes Building Materials Haven Mobil Service Stations Macys Department Stores Home Depot Building Materials Macy's Department Stores JC Penney Department Stores My Goods Market Service Stations Living Spaces Furniture Home Furnishings Parallon Supply Chain Solutions Medical/Biotech Lowes Building Materials Ralphs Grocery Stores Macys Department Stores Schwarz Paper Company Light Industrial/Printers Monoprice Fulfillment Centers Shell Service Stations NIC Partners Electrical Equipment Stater Bros Grocery Stores Ralphs Grocery Stores Stiles Machinery Heavy Industrial Ralphs Grocery Stores Target Discount Department Stores Ross Family Apparel Tesla Motors New Motor Vehicle Dealers Sears Department Stores Total Wine&More Convenience Stores/Liquor Southwire Energy/Utilities Walmart Discount Department Stores Target Discount Department Stores Walters Wholesale Electric Plumbing/Electrical Supplies Walmart Discount Department Stores Notes: Firms listed alphabetically 211 CITY OF RANCHO CUCAMONGA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year General Tax Total Ended Obligation Capital Allocation Governmental June 30 Bonds Leases Bonds Loans Activities 2013 $ - $ 2,615,708 $ - $ - $ 2,615,708 2014 - 2,083,890 - - 2,083,890 2015 - 1,564,076 - - 1,564,076 2016 - 1,034,303 - - 1,034,303 2017 - 486,229 - - 486,229 2018 - - - - - 2019 - 1,919,173 - - 1,919,173 2020 - 1,465,999 - - 1,465,999 2021 - 995,689 - - 995,689 2022 - 507,340 - - 507,340 Notes: Details regarding the City's outstanding debt can be found in the notes to financial statements This ratio is calculated using personal income and population for the prior calendar year. 212 CITY OF RANCHO CUCAMONGA Ratios of Outstanding Debt by Type (Continued) Last Ten Fiscal Years Business-type Activities Lease Total Total Percentage Debt Revenue Certificates of Business-type Primary of Personal Per Bonds Participation Activities Government Income Capita $ - $ - $ - $ 2,615,708 0.05% 15 - 2,083,890 0.04% 12 - 1,564,076 0.03% 9 - 1,034,303 0.02% 6 - 486,229 0.01% 3 - - 0.00% - 13,555,938 - 13,555,938 15,475,111 0.27% 86 13,179,158 - 13,179,158 14,645,157 0.24% 83 12,687,378 - 12,687,378 13,683,067 0.22% 78 - - - 507,340 0.01% 3 213 CITY OF RANCHO CUCAMONGA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Outstanding General Bonded Debt Fiscal Year General Tax Percent of Percentage Ended Obligation Allocation Assessed of Personal Per June 30 Bonds Bonds Total Value 1 Income 2 Capita 2 2013 $ - $ - $ - 0.00% 0.00% - 2014 - - - 0.00% 0.00% - 2015 - - - 0.00% 0.00% - 2016 - - - 0.00% 0.00% - 2017 - - - 0.00% 0.00% - 2018 - - - 0.00% 0.00% - 2019 - - - 0.00% 0.00% - 2020 - - - 0.00% 0.00% - 2021 - - - 0.00% 0.00% - 2022 - - - 0.00% 0.00% - Notes: General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 2 These ratios are calculated using personal income and population for the prior calendar year. 214 CITY OF RANCHO CUCAMONGA Direct and Overlapping Debt June 30, 2022 City Net Taxable Assessed Value $ 30,346,380,711 2 City Percentage Total Share of Applicable Debt 6/30/22 Debt Overlapping Tax and Assessment Debt: Metropolitan Water District 0.894% $ 20,175,000 $ 180,365 Chaffey Community College District 22.385% 302,930,000 67,810,881 Chaffey Union High School District 42.306% 513,636,737 217,299,158 Alta Loma School District 98.879% 57,397,978 56,754,547 Central School District 98.087% 67,594,835 66,301,746 Cucamonga School District Community Facilities District No.97-1 100.000% 3,910,000 3,910,000 Etiwanda School District 68.868% 87,096,760 59,981,797 Etiwanda School District CFD No. 7 25.417% 7,145,000 1,816,045 Etiwanda School District CFD No. 8 64.507% 3,960,000 2,554,477 Etiwanda School District CFD No. 9 69.668% 6,770,000 4,716,524 Etiwanda School District CFD Nos.2004-2, 2007-1, 2018-1 100.000% 20,730,000 20,730,000 Etiwanda School District Rancho Etiwanda Public Facilities Authority CFD No. 1 100.000% 9,655,000 9,655,000 Fontana Unified School District 0.527% 269,259,841 1,418,999 Upland Unified School District 0.118% 86,283,463 101,814 City of Rancho Cucamonga CFDs 100.000% 57,051,000 57,051,000 City of Rancho Cucamonga 1915 Act Bonds 100.000% 225,000 225,000 Total overlapping tax and assessment debt 1,513,820,614 570,507,353 Direct and Overlapping General Fund Debt San Bernardino County General Fund Obligations 11.399% 188,035,000 21,434,110 San Bernardino County Pension Obligation Bonds 11.399% 119,835,000 13,659,992 San Bernardino County Flood Control District General Fund Obligations 11.399% 44,780,000 5,104,472 Chaffey Community College District General Fund Obligations 22.385% 27,675,000 6,195,049 Cucamonga School District Certificates of Participation 40.230% 3,426,000 1,378,280 Fontana Unified School District Certificates of Participation 0.527% 20,515,000 108,114 West Valley Vector Control District Certificates of Participation 31.075% 1,866,938 580,151 Total direct and overlapping general fund debt 406,132,938 48,460,168 Overlapping Tax Increment Debt(Successor Agency) 100.000% 224,485,000 224,485,000 Total overlapping debt $ 2,144,438,552 $ 843,452,521 City direct debt 507,340 Total direct and overlapping debt 3 $ 843,959,861 Notes: The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value.Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. 2 Includes aircraft values. For 2022,the net taxable value per HdL Coren&Cone(HdL)was utilized in lieu of the Agency Net Valuation provided by the County of San Bernardino Auditor-Controller's database,as HdL's net taxable value includes parcels from the County Assessor's database that were inadvertently excluded by the Auditor-Controller. The City believes that the data from HdL provides a more accurate picture for the financial statement reader. 3 Excludes tax and revenue anticipation notes,enterprise revenue, mortgage revenue, and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity. Source: California Municipal Statistics, HdL Coren&Cone 215 o o �o O O y6 U M MO MO ?L N r r > O Y a3 EA V3 E ca n E ) E co co o M co O O m U a L � N a) c a L N LLn LLo a o 3 n r 3 c c acao N L N V3 V3 a)w' y E c co co o.o Cl(O LO 3 a)a � c a p p M M o Z ` v v O a) O a) N � � .2 Y"O co co > a) o a N C N a c ER V3 y Y p co co o N m M M o R 3Isi p W Q o c t U 0 Ln N O O o) >Q N O N co co a)U a3 a3 o V3 V3 a)@ O Ln Ln o 3 d N N O `p o M M O C L M M o0 O O )L O M M > ` o o O O a 0 N Q Q D.C co o u 3 m o } (A c o 0 0 o rn� (' U N N o a) c Z LL cOo (00 O p U o c q, in O 415 h cc ( C U M VE a) N M M d 0 O a) M 0) y a V C 6 O w O 2) Ma p o 2 as LL y w E V C OD o u!O O >� _ N O a o D H O N N a) 0 N @ @ C LL 0 o ow r 0 0 — O J N M M ° > o o a) g 64 e4 il- cao (o Lo o r- Ln Ln o r o o a) cM M fl N N e > O co ro aoo ro co Eos In Ln M O o) L C N co O Cl) M M M a) p O a M ,y n va v3 F» v3 a) aO)i E ca00E CO O o O co N> r- r Cl � 3L.. _ _ o 0 ID N ca O N M M o v v aa)y ac) O N c0 E O 2 (a (6 C L O L d d EA a3 a N a) n o o a r I� O o N � N N N O a) a)OP N d D O 2 a aS N co co ca Y W N D) o) N > d) fn O )` a a N M M_ N a1 (6 N Y O a) 0 a ` O j N .. C � } a asEM aUdE a O N L U y 0 0 0 c V LL Y _ O.-. U o y c ca o E aE 'o >y� E x a)) a 0 0 - 0 a)c ca C� m a a a v a) d U'o aO1) L c o E z J F LU rn U U O U a a a) ca d m m o a) m ca z M E m d a a a 0 cc N cm a) F loll F O 4) 216 CITY OF RANCHO CUCAMONGA Pledged-Revenue Coverage Last Ten Fiscal Years (In Thousands) Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30, 2022 Increment Principal Interest Coverage 2013 n/a n/a n/a n/a 2014 n/a n/a n/a n/a 2015 n/a n/a n/a n/a 2016 n/a n/a n/a n/a 2017 n/a n/a n/a n/a 2018 n/a n/a n/a n/a 2019 n/a n/a n/a n/a 2020 n/a n/a n/a n/a 2021 n/a n/a n/a n/a 2022 n/a n/a n/a n/a Note: Details regarding the City's outstanding debt can be found in the notes to financial statements. Tax increment figures are net of related pass-through payments. 217 CITY OF RANCHO CUCAMONGA Demographic and Economic Statistics Last Ten Calendar Years Per Personal Capita Income Personal Unemployment Calendar Population (in thousands) Income Rate Year (1) (2) (2) (3) 2012 171,058 $ 5,341,115 $ 31,224 6.2% 2013 172,299 5,335,755 30,968 5.4% 2014 174,064 5,402,772 31,039 6.0% 2015 175,251 5,365,133 30,613 4.8% 2016 177,324 5,317,032 29,984 4.2% 2017 176,671 5,586,992 31,623 3.9% 2018 179,412 5,767,788 32,148 3.1% 2019 175,522 5,982,230 34,082 2.9% 2020 175,131 6,320,248 36,088 7.7% 2021 174,476 6,672,933 38,245 5.4% Sources: (1) California State Department of Finance (2) U.S. Census Bureau (3) California Employment Development Department 218 CITY OF RANCHO CUCAMONGA Principal Employers Current Year and Nine Years Ago 2022 2013 Percent of Percent of Number of Total Number of Total Employer Employees, Rank Employment Employees, Rank Employment Etiwanda School District 1194 1 1.23% 1058 2 1.49% Inland Empire Health Plan 1180 2 1.22% n/a n/a n/a Chaffey Community College 1100 3 1.13% 1229 1 1.73% West Valley Detention Center 1100 4 1.13% n/a n/a n/a Frito-Lay 949 5 0.98% 561 9 0.79% Alta Loma School District 800 6 0.82% 670 6 0.94% Central School District 715 7 0.74% 527 10 0.74% City of Rancho Cucamonga 560 8 0.58% 841 4 1.18% Amphastar Pharmaceutical 550 9 0.57% 880 3 1.24% National Community Renaissance 500 10 0.52% n/a n/a n/a Southern California Edison n/a n/a n/a 800 5 1.13% Mercury Casualty n/a n/a n/a 606 7 0.85% West Coast Liquidators n/a n/a n/a 565 8 0.80% Note: "Total Employment"as used above represents the total employment of all employers located within City limits. ' Includes full-time and part-time employees. *Only the top ten employers for each year presented have data displayed. If a company did not rank in the top ten employers for both years presented, then one of the two years will state "n/a". 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