HomeMy WebLinkAbout2023/06/30 Comprehensive Annual Financial ReportANNUAL COMPREHENSIVE
FINANCIAL REPORT
City of Rancho Cucamonga
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FOR FISCAL YEAR ENDED JUNE 30, 2023
City of Rancho Cucamonga, California
Annual Comprehensive Financial Report
For Fiscal Year Ended June 30, 2023
Prepared by the
City of Rancho Cucamonga
Finance Department
Noah Daniels
Finance Director
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CITY OF RANCHO CUCAMONGA, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................................... i
City Officials ............................................................................................................................................................. vii
Organization Chart .................................................................................................................................................. 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 ................................................................................................................................ 29
Statement of Activities ...................................................................................................................................... 30
Fund Financial Statements:
Balance Sheet - Governmental Funds ............................................................................................................. 32
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position ...................................................................................................................... 35
Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds ..................................................................................................................... 36
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities ...................................................................................................................................... 39
Statement of Net Position - Proprietary Funds ................................................................................................ 40
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds ...................................................................................................................... 42
Statement of Cash Flows - Proprietary Funds ................................................................................................. 44
Statement of Fiduciary Net Position - Fiduciary Funds .................................................................................... 48
Statement of Changes in Fiduciary Net Position - Fiduciary Funds ................................................................ 49
Notes to Financial Statements ................................................................................................................................ 51
CITY OF RANCHO CUCAMONGA, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
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 - Housing Successor Agency ..................................................................... 110
Budgetary Comparison Schedule - Fire District ............................................................................................... 111
Pension Information:
Schedule of Changes in Net Pension Liability and Related Ratios -
Miscellaneous Plan - Agent Multiple-Employer Plan .................................................................................... 112
Schedule of Plan Contributions - Miscellaneous Plan -
Agent Multiple-Employer Plan ....................................................................................................................... 114
Schedule of Proportionate Share of the Net Pension Liability -
Miscellaneous Rate Plan - Cost Sharing Multiple-Employer Plan ................................................................ 116
Schedule of Plan Contributions - Miscellaneous Rate Plan -
Cost Sharing Multiple-Employer Plan ........................................................................................................... 118
Schedule of Proportionate Share of the Net Pension Liability -
Safety Rate Plan - Cost Sharing Multiple-Employer Plan ............................................................................. 120
Schedule of Plan Contributions - Safety Rate Plan -
Cost Sharing Multiple-Employer Plan ........................................................................................................... 122
Schedule of Changes in Net Pension Liability/(Asset) and Related Ratios -
PARS Retirement Enhancement Plan .......................................................................................................... 124
Schedule of Plan Contributions - PARS Retirement Enhancement Plan ........................................................ 126
Other Post-Employment Benefit Information:
Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios ........................................................ 128
Schedule of Contributions - OPEB ................................................................................................................... 130
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds ................................................................................ 136
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Funds .............................................................................................. 146
Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds:
Gas Tax ............................................................................................................................................................ 155
Recreation ........................................................................................................................................................ 156
Beautification .................................................................................................................................................... 157
Lighting Districts ............................................................................................................................................... 158
Landscape Maintenance Districts .................................................................................................................... 159
Pedestrian Grant .............................................................................................................................................. 160
Community Development Block Grant ............................................................................................................. 161
Assessment Administration .............................................................................................................................. 162
SB 140 .............................................................................................................................................................. 163
CITY OF RANCHO CUCAMONGA, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued)
Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds (Continued):
Air Quality Improvement ................................................................................................................................... 164
Measure I ......................................................................................................................................................... 165
Library Services ............................................................................................................................................... 166
Public Safety Grants ........................................................................................................................................ 167
Used Oil Recycling ........................................................................................................................................... 168
Library Services Grants .................................................................................................................................... 169
Litter Reduction Grant ...................................................................................................................................... 170
SAFETEA-LU Grant ......................................................................................................................................... 171
Underground Utilities ........................................................................................................................................ 172
Citywide Infrastructure Improvement ............................................................................................................... 173
Proposition 1B .................................................................................................................................................. 174
Integrated Waste Management ........................................................................................................................ 175
SB1 – TCEP ..................................................................................................................................................... 176
Public Art Trust Fund ....................................................................................................................................... 177
State Grants Fund ............................................................................................................................................ 178
Federal Grants Fund ........................................................................................................................................ 179
AD 91-2 Redemption – Day Canyon ................................................................................................................ 180
PD 85 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
Industrial Area Traffic Fund .............................................................................................................................. 186
Opioid Settlement Fund ................................................................................................................................... 187
Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds:
Capital Projects Fund ....................................................................................................................................... 188
Combining Statement of Net Position - Internal Service Funds ....................................................................... 190
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Internal Service Funds ..................................................................................................... 191
Combining Statement of Cash Flows - Internal Service Funds ....................................................................... 192
Combining Statement of Fiduciary Net Position - All Custodial Funds ............................................................ 194
Combining Statement of Changes in Fiduciary Net Position - All Custodial Funds ......................................... 197
CITY OF RANCHO CUCAMONGA, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number
STATISTICAL SECTION
Financial Trends:
Net Position by Component - Last Ten Fiscal Years ....................................................................................... 204
Statement of Activities (Condensed) - Last Ten Fiscal Years ......................................................................... 206
Fund Balances of Governmental Funds - Last Ten Fiscal Years .................................................................... 210
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years ................................................. 212
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property ................................................................. 214
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years .............................................................. 216
Principal Property Taxpayers - Current Year and Nine Years Ago.................................................................. 218
Property Tax Levies and Collections - Last Ten Fiscal Years ......................................................................... 219
Principal Sales Tax Remitters - Current Year and Nine Years Ago................................................................. 220
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years .......................................................................... 221
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years ............................................................ 222
Direct and Overlapping Debt ............................................................................................................................ 223
Legal Debt Margin Information - Last Ten Fiscal Years .................................................................................. 224
Pledged-Revenue Coverage - Last Ten Fiscal Years ..................................................................................... 226
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Calendar Years ................................................................. 227
Principal Employers - Current Year and Nine Years Ago ................................................................................ 229
Operating Information:
Full-Time and Part-Time City Employees by Function - Last Ten Fiscal Years .............................................. 230
Operating Indicators by Function - Last Ten Fiscal Years ............................................................................... 232
Capital Asset Statistics by Function - Last Ten Fiscal Years ........................................................................... 234
City of Rancho Cucamonga
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Introductory Section
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January 12, 2024
Honorable Mayor, Members of the City Council, and Citizens of the City of Rancho Cucamonga:
We are pleased to submit the Annual Comprehensive Financial Report (ACFR) of the City of
Rancho Cucamonga for the Fiscal Year ended June 30, 2023.
This report consists of management’s representations concerning the finances of the City of
Rancho Cucamonga. 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 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 of Rancho Cucamonga is located in San Bernardino County, in the southeastern part of
California. It is situated at the foothills of the San Gabriel Mountains and part of the Inland Empire, a
metropolitan area east of the Los Angeles metropolitan area. The City enjoys a strategic location with
proximity to major highways, providing easy access to other parts of California. This geographical setting
offers a unique blend of urban and natural environments, with scenic mountain views and urban
amenities.
The City’s current estimated population is approximately 174,000, making it the fourth most populous in
San Bernardino County and 26th in California. In terms of size and population, the City is significantly
larger than many other cities in California, reflecting its status as a major suburban city. Its growth and
development can be characterized by a combination of its favorable location, diverse population, and a
range of economic activities, including historical ties to agriculture and winemaking.
i
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.
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 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.
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, the
Rancho Cucamonga Public Financing Authority, and the Rancho Cucamonga EIFD Public Financing
Authority. The activities of these agencies are included in these financial statements.
Rancho Cucamonga Public Improvement Corporation: Established to support the City financially
through the financing, acquisition, construction, improvement, and leasing of public improvements for
the benefit of the City's residents and the surrounding area.
Rancho Cucamonga Fire Protection District: Established in July 1989 after transitioning from the
County of San Bernardino, the Fire District provides essential fire suppression and protection services
to the City.
ii
Rancho Cucamonga Library: Separated from the San Bernardino County Library System and
Became part of the City in July 1994. The library focuses on enriching the community by providing
access to a blend of traditional and innovative resources, promoting education and reading, and
offering a welcoming environment with a service-oriented staff.
Rancho Cucamonga Public Financing Authority: Formed to assist in the financing and refinancing of
the construction, expansion, upgrade, and improvement of public capital facilities. This supports the
rehabilitation and development of residential and economic projects within the City.
Rancho Cucamonga EIFD Public Financing Authority: Acts as the governing board for the
Rancho Cucamonga Enhanced Infrastructure Financing District (EIFD), which was created to finance
significant public facilities and projects that benefit the community at large.
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.
Local Economy
The local economy of the City is characterized by a diverse mix of industries, including 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 and a relatively stable job market. The
City is home to several well-known companies that contribute significantly to the local economy and offer
various employment opportunities to the residents.
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 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, where approximately a fifth of the
City’s total sales tax revenue is generated each fiscal year. 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 city 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, shopping centers, and auto
malls. Statewide, the City is a respectable but average sales tax performer, ranking 235th in sales tax per
capita out of 539 cities and counties for the calendar year 2022 (up from 238th in the calendar year 2021).
iii
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, including property tax in-lieu of vehicle license fees
and sales taxes, comprise approximately 70% of general revenues for the City, and transient occupancy
taxes and franchise fees add up to around 13%. 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 that 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 spike in 2020 to 7.9%. The current unemployment rate has dropped to 3.7% as of
June 2023 and 3.6% as of October 2023, which is within the traditional measure of unemployment.
The local housing market has displayed resilience in the face of shifting economic conditions. Despite a
contraction in sales volumes, median home prices have demonstrated stability and a slight upward trend.
The median home price rose modestly by 0.76% in the third quarter of 2023, indicating sustained market
value. This recent increment is notably less than the significant surge in median home prices during the
second quarter of 2023. Yet, it reflects a market that continues to attract investment despite the broader
economic challenge of rising mortgage rates.
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 forecast
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 estimate 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.
iv
For the significant revenue sources, the City projects an increase in sales tax revenue of 3.85% over the
Fiscal Year 2022/23 budget. A slowdown in sales tax revenue growth was expected after the significant
rebound following the economic impacts of COVID-19. Strong job numbers and low unemployment have
allowed consumption spending to stay resilient given the rising cost environment. Property taxes
(including post-Redevelopment Agency property tax revenues) are projected to increase by 4.31% due
to the growth in assessed valuations. Property tax in lieu of vehicle license fee, categorized with property
tax, is expected to grow 4.95% from the Fiscal Year 2022/23 due to the same underlying growth in
assessed valuation for properties within the City.
The City’s financial policy requires adopting a balanced operating budget each year. A balanced budget
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 City Council's responsibility 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 the Fiscal Year 2023/24
budget. This recognition requires the City's budget to serve as an exemplary policy document, operations
guide, financial plan, and communication tool, fulfilling all the necessary criteria set forth by the
GFOA program.
Major initiatives and capital projects
The new Fire Station 178, which began construction in Fiscal Year 2021/22, is situated in the southern
area of Rancho Cucamonga, a hub for office and residential spaces. This $25.7 million project is
designed to enhance emergency services and house advanced fire equipment, including the City's
first electric fire truck. Additionally, it will feature the 9/11 Memorial Park and a 24/7 Library Kiosk.
The Second Story and Beyond® project will introduce an interactive learning environment for children,
featuring high-quality, museum-style exhibits. A combined library and literacy-themed space, believed
to be the first of its kind in the nation, is expected to conclude during the Fiscal Year 2023/24.
Generous funding from San Bernardino County and a substantial federal grant from NASA have
enabled significant upgrades to the project.
The Archibald Library Replacement Project involves a $13 million renovation of the Lions Center East
and West, transforming these existing facilities into a modern library. These centers, which once
hosted the City’s initial library services, will be upgraded to include new community meeting areas,
space for the expanding Library of Things, and outdoor areas for large events. The project will retrofit
infrastructure to meet current energy-efficient standards, which will help reduce costs and improve
comfort. Half of the funding for this significant community investment comes from a $6.5 million
Infrastructure Grant from the California State Library.
v
The Administrative Services Workgroup is set to implement the Workday ERP system, a modern tool
designed to manage financials, payroll, and human capital. This multi-million investment will enhance
productivity by moving routine tasks online, streamlining requests and approvals through automated
workflows, reducing paper use, and collecting more detailed transaction data for better analysis. The
introduction of this system will lead to more efficient processes, allowing for quicker responses and
improved overall service through a secure, reliable, and technologically advanced software solution.
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, 2023. 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-five 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 their
continuing efforts to maintain the City’s fiscal health.
Respectfully submitted,
John R. Gillison Noah Daniels
City Manager Finance Director
vi
CITY OF RANCHO CUCAMONGA
CITY OFFICIALS
JUNE 30, 2023
City Council
L. Dennis Michael Mayor
Lynne B. Kennedy Mayor Pro-Tem
Ryan A. Hutchison Council Member
Kristine D. Scott Council Member
Ashley N. Stickler 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 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 Noah Daniels
Fire Chief Mike McCliman
Senior Human Resources Director Robert Neiuber
Human Resources Director Jenifer Phillips
Innovation and Technology Director Shelly Munson
Library Director Wess Garcia
Planning and Economic Development Director Matt Marquez
Police Chief Michael Smith
Public Works Services Director (as of January 2024)Micah Martin
vii
CITY OF RANCHO CUCAMONGA
ORGANIZATION CHART
Services
Development
Planning Public Works
District
and Services
Community
Improvement
Safety Services
CommunityFinance
Library
Building and Engineering
Human
Resources
Innovation and
Technology
Services
Services
Records
Management
City Treasurer
City
Attorney
Economic and
CommunityServices
City Manager
City Council
Fire
City Clerk
Administrative Civic and
Cultural Services
Citizens
Rancho Cucamonga
Police
Department
Animal Care
of
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, 2022
Executive Director/CEO
ix
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City of Rancho Cucamonga
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Financial Section
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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, 2023, 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, 2023, and the respective changes in financial position and,
where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for 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 6 to the financial statements, in the fiscal year ended June 30, 2023, the City adopted new
accounting guidance, GASB Statement No. 96, Subscription Based Information Technology Arrangements. 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.
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 and major special revenue funds, and the
required pension and other postemployment benefits schedules 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 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.
2
To the Honorable Mayor and Members of the City Council
City of Rancho Cucamonga, California
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 January 12, 2024, 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.
Brea, California
January 12, 2024
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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, 2023. This discussion and analysis should be read in conjunction with the basic financial
statements and accompanying notes to the financial statements. 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 $1,509,212,125, an increase of $68,961,238 for the
Fiscal Year 2022/23. The total net position consisted of $858,755,778 as net investment in capital
assets, $486,484,594 as restricted, and $163,971,753 as unrestricted.
The total change in net position is $68,961,238, consisting of governmental activities of $67,395,806
and business-type activities of $1,565,432.
As of June 30, 2023, the aggregate ending fund balance of the City's governmental funds was
$651,924,268, an increase of $51,805,049 from the prior fiscal year. The combined fund balance
consisted of $23,018,987 as non-spendable, $421,705,132 as restricted, $162,227,203 as committed,
$55,071,810 as assigned, and a deficit of $10,098,864 as unassigned.
At the end of the fiscal year, the General Fund reported a fund balance of $180,998,603, of which
$22,702,647 was non-spendable, $16,546,349 was restricted, $107,546,210 was committed, and
$34,203,397 was assigned.
The City's capital assets, net of accumulated depreciation and amortization, were $861,539,879, an
increase of $18,228,254 from the prior fiscal year. The total capital assets, net of depreciation, for
governmental activities represented $816,912,564, and business-type activities represented
$44,627,315.
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 the 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.
5
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
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, Sports Complex, and Second
Story Library and Beyond.
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, and Rancho Cucamonga EIFD 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.
6
The City maintains many individual governmental funds organized according to their type, such as 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, Housing Successor Agency,
and Fire District 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.
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 Sports Complex, Municipal Utility, and Fiber Optic Network enterprise
funds are major funds. The Second Story Library and Beyond 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 the 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 $1,509,212,125 at the close of the fiscal year.
The following table is a condensed summary of the City's government-wide net position:
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, 2023, net investment in capital assets is reported as $858,755,778, which
makes up 56.9% of the City's total net position. Compared to the prior fiscal year, net investment in capital
assets increased by $16,139,986 or 1.9%. The City uses capital assets to provide services to its residents
and businesses; therefore, these assets are not available for future spending. The City's investment in
capital assets would be reported net of related debt, and 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 $486,484,594 or 32.2% of the City's total net position, which is an
increase of $21,381,212 or 4.6% 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 $163,971,753 to meet its obligations for its
governmental and business-type activities. The unrestricted net position makes up 10.9% of the City's total
net position. It is an increase of $31,440,040 or 23.7% from the prior fiscal year. At $147,512,123, the
governmental activities make up most of the total unrestricted net position, and the business-type activities
make up the balance of $16,459,630.
The City's total current and other assets increased by $68,060,068, or 9.7%, comprising of increases in
governmental activities of $67,297,792 and business-type activities of $762,276. The fluctuations from the
prior fiscal year which account for this net increase are:
Cash and investments account for 31.6% of total assets. This reflects a significant increase of
$45,848,689, or 9.7%, from the prior fiscal year. The change is both an increase of $45,933,191
8
for governmental activities and a decrease of $84,502 for business-type activities. Various factors
have contributed to the rise in cash and investments for governmental activities, but overall, it is
attributable to the positive net change in net position and fund balance. As a result, the City
deposited more funds to the liquidity portfolio during the current fiscal year. The liquid portfolio,
consisting of the California Asset Management Program (CAMP) and the Local Agency Investment
Fund (LAIF), increased by $44,824,962 compared to the prior fiscal year. The liquidity portfolio,
specifically the City and Fire District's deposits in the CAMP, provided exceptional returns during
the fiscal year, up to 5.2% as of June 2023. Recently, the City and Fire District undertook a historical
analysis of its cash flow requirements, determining there was excess liquidity, and as a result, made
additional deposits of cash in the long-term portfolio with the rising interest rate environment.
The overall increase is offset by a decrease in the fair value of these investments of $19,777,452
for governmental and business-type activities. The negative fair value adjustment is due to rising
interest rates and the fact that the City and Fire District hold investments acquired at lower yields.
This adjustment aligns with the Governmental Accounting Standards Board Statement No. 31
(GASB 31), which accounts for unrealized losses as the City's strategy typically involves holding
investments until maturity. For more detailed information about the City's pooled cash and
investments, refer to Note 3 in the notes to the financial statements.
Accounts receivable, net of allowances, represent 1.8% of total assets and increased by
$14,795,728 or 99.6% from the prior fiscal year. The increase comprises increases of $13,875,123
for governmental activities and $920,605 for business-type activities. The growth was primarily due
to a $16 million reimbursement request to the San Bernardino County Transportation Authority for
their share of project costs for the Base Line Interchange, which was completed and placed into
service several years ago. Due to the size of the project and the multiple agencies involved, there
are continuing efforts spent toward the close-out of the project and expected to continue into future
fiscal years.
Notes and loans receivable represent 10.8% of total assets and increased by $2,752,941 or 1.6%
from the prior fiscal year. This fiscal year, only governmental activities report notes and loans
receivable. The increase is due to accrued interest on loans provided for low and moderate-income
housing projects. Further details on this are provided in the Housing Successor Agency analysis
section of the Management's Discussion and Analysis or Note 4 in the notes to the financial
statements.
Grants receivable account for 0.3% of total assets and increased by $2,547,986 or 146.5%
compared to the prior fiscal year. This fiscal year, only governmental activities report notes and
loans receivable. The majority of this increase is due to receivables recorded in the State Grants
special revenue fund, particularly a $2.5 million reimbursable grant from the State of California
allocated for the City's community dog park project.
Leases receivable account for 0.5% of total assets and increased by $42,848, or 0.5%, since the
prior fiscal year. This change comprises a decrease of $289,259 in governmental activities and an
increase of $332,107 in business-type activities. Governmental activities decreased according to
the scheduled receipts per existing agreements that the City has with the various entities. In
contrast, the increase in business-type activities is the net result of scheduled receipts per existing
agreements and an amended lease agreement for the baseball facility used by the Rancho
Cucamonga Quakes. The addition of the amended lease on the baseball facility added $526,114
to lease receivables while being offset by scheduled receipts of $194,007. For more details on
lease receivables, refer to Note 5 in the notes to the financial statements.
The City reported a net OPEB asset, which decreased by $5,380,634 or 58.7%, and a net pension asset
for the PARS Retirement Enhancement Plan, which decreased by $6,132,643 or 63.5%. Both decreased
due to reductions in investment returns during the measurement period. Detailed information on the City's
PARS Retirement Enhancement Plan and for the City's Other Post-Employment Benefits with Notes 14
and 15 in the notes to the financial statements, respectively.
9
Capital assets, net of depreciation, are 52.6% of total assets. In the current fiscal year, capital assets
increased by $18,228,254 or 2.2%. The net increase comprises an increase in capital assets not being
depreciated of $30,846,795 and a decrease in capital assets being depreciated of $12,618,541. Further
details on this are provided in the capital asset analysis section of the Management's Discussion and
Analysis or Note 7 in the notes to the financial statements.
The City's current and other liabilities increased by $11,657,594 or 35.8%. The change comprises increases
of $10,802,768 for the governmental activities and $854,826 for the business-type activities. The
fluctuations from the prior fiscal year which account for this net increase are:
Accounts payable account for 9.5% of total liabilities and increased by $3,094,603 or 24.8%
compared to the prior fiscal year. The increase consists of $2,272,285 for the governmental
activities and $822,318 for the business-type activities. Such changes are typically attributed to the
timing of the City's payments to vendors for goods and supplies, which can fluctuate from one fiscal
year to another.
Unearned revenue totaled $7,851,253 for governmental activities in the current fiscal year and
accounted for 4.8% of total liabilities, increasing by $5,175,262 or 193.4% since the prior fiscal
year. Unearned revenue typically involves advance grants received by the City, where the eligible
expenses to recognize these revenues have not occurred in a fiscal year. Two special revenue
funds predominately made up the increase in unearned revenues.
First, the Library Services special revenue fund reported unearned revenues of $4,517,624, an
increase of $2,517,624 from the prior fiscal year. The increase is net of postponed revenue
recognition for two state grants for enhancements to the Paul A. Biane Library and the Archibald
Library, totaling $3,418,302, offset by the recognition of $900,678 of unearned revenue from a local
grant utilized for the Second Story Library and Beyond.
Second, the State Grants special revenue fund, which reported unearned revenues of $2,126,407,
an increase of $1,878,567, is primarily related to the postponed recognition of a capital state grant
for the installation of cameras for early wildfire detection.
Long-term debt due within one year increased by $428,205 and is entirely within governmental
activities. This increase is the net result of leases payable at the end of the previous fiscal year,
adjusted against the amount due in the next fiscal year, less the addition of $935,097 for
subscription liabilities due within one year from the implementation of GASB Statement No. 96,
Subscription-Based Information Technology Arrangements. Detailed information on Subscription-
Based Information Technology Arrangements can be found in Note 6 in the notes to the financial
statements.
Net pension liabilities have increased by $61,159,195, or 129.1%, compared to the previous fiscal year.
The increase, according to the City and Fire District plans, is $38,036,637 for the City's miscellaneous plan,
$1,815,056 for the Fire District's miscellaneous plan, and $21,307,502 for the Fire District's safety plan.
The primary reason for these changes is the negative net investment returns experienced during the
measurement period. For more comprehensive information on the net pension liabilities of both the City
and the Fire District, please refer to Note 13 in the financial statements.
Long-term debt outstanding increased by $2,236,968 or 84.9% compared to the previous fiscal year. As
noted with the portion of long-term debt due within one year, the increase is primarily due to the
implementation of the GASB Statement No. 96, Subscription-Based Information Technology Arrangements.
Further detailed information on Subscription-Based Information Technology Arrangements can be found in
Note 6 in the notes to the financial statements.
10
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.
11
Governmental Activities
Revenues: For the fiscal year ended June 30, 2023, total revenues from governmental activities were
$277,690,430, total expenses were $210,224,390, and transfers to business-type activities were $70,234.
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 as well as 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 2022/23 and 2021/22, 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.
12
Revenues from taxes in the amount of $157,921,915, and program revenues, including charges for services
in the amount of $36,534,632, operating contributions and grants in the amount of $14,253,133, and capital
contributions and grants of $45,188,652, 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
2022/23 and 2021/22:
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 $4,626,770 or 4.8% 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 Vehicle License Fees (VLF) increased by $1,917,289, while property
transfer taxes saw a decrease of $1,111,644 from the previous fiscal year. The increase in property
taxes in lieu of VLF is linked to the growth in gross assessed property values fueled by home sales
and commercial/industrial development over the past few fiscal years. The property transfer tax is
imposed during property transactions. Although the City experienced a historic level of residential
property transactions and sales in the previous fiscal year and part of the year before, recent trends
such as rising interest rates, limited property availability, and elevated home prices have
contributed to a reduction in property sales volume this fiscal year.
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 former 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 the City and Fire
District. Respectively, the City and Fire District received $508,458 and $1,241,210 more residual
receipts in the current fiscal year. Additionally, the Fire District received $1,470,280 more in pass-
through payments in the current year. More information about the dissolution of the former
redevelopment can be found in Note 19 of the notes to financial statements.
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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 were virtually unchanged, only decreasing by $157,043 or 0.4%. The modest decrease
follows a significant post-pandemic rebound in the prior year. In the current year, sales tax was
impacted mainly by inflationary pressures on taxable sales in the City. Based on preliminary
information and analysis, sales tax is expected to flatten out or slightly decline for the Fiscal Year
2023/24; however, that projection could change significantly depending on whether inflation
moderates and the economy remains solid or there is a significant economic downturn as a result
of high-interest rates and declining employment.
Franchise fees, essentially a form of statutory "rent" paid by franchisees for utilizing city
infrastructure, come from sources such as gas, electricity, cable, and refuse services. This year,
franchise fees saw an increase of $771,538, or 7.7% compared to the previous year. The primary
reason for this rise is the higher gross sales from gas and electric franchises, driven by inflationary
pressures on commodity prices during the fiscal year.
Transient occupancy taxes are a 10% tax applied to the cost of the hotel or other lodging stays of
less than 30 days. Transient occupancy taxes increased by $527,067 or 11.9%, as the factors
influencing transient occupancy taxes include business and leisure travel, room rate increases, and
a new hotel opening during the fiscal year.
The following table is a condensed summary of the governmental program revenues by functional category
for Fiscal Years 2022/23 and 2021/22:
Charges for services increased by $8,961,218, or 32.5%. This rise is attributed to exceptionally strong
development-related charges and fees from activity as a result of the City's new General Plan. The primary
charges and fees that increased during the fiscal year include $1,913,979 from plan check, planning, and
engineering fees; $1,375,168 from underground utility fees; and $1,860,627 from in-lieu fees for
infrastructure improvements, specifically related to the Industrial Area Traffic special revenue fund.
Operating contributions and grants decreased by $25,593,364 or 64.2% from the prior fiscal year. This
decline is primarily because of the one-time reporting of $26,835,530 in Federal grant funding from the
American Rescue Plan Act in the previous fiscal year.
Capital contributions and grants increased by $14,401,294, or 46.8%, compared to the prior fiscal year.
This overall increase includes a reduction of $5,502,034 in development impact revenue within the
Development Impact Fee special revenue fund and offset by an increase of $16,226,209 due to the
reimbursement request submitted to the San Bernardino County for the Base Line Interchange Project, as
mentioned earlier.
14
Expenses: The following chart provides a snapshot of the City's governmental activities for Fiscal Years
2022/23 and 2021/22, showing the expenses by function.
The City's governmental activities expenses increased by $43,939,502 or 26.4% from the prior fiscal year.
The total net increase was led by increases in the general government of $5,088,794, public safety – fire
of $20,523,970, and engineering and public works of $11,731,776.
The following is a summary of significant changes in governmental activities expenses:
This fiscal year was the implementation of GASB Statement No. 96, Subscription-Based
Information Technology Arrangements, created cost allocations across various functions:
General Government: $761,266
Community Services: $84,403
Public Safety – Fire: $106,087
The governmental entities contributed an additional $3,900,000 toward unfunded actuarial liability,
which increased General Government expenses for the fiscal year. This discretionary payment
aims to reduce the long-term interest costs associated with the City's unfunded actuarial liability.
General Government expenses also included $1,890,276 allocated from the Computer
Equipment/Technology Replacement internal service fund. This was mainly due to the
implementation costs for a new finance and human resource enterprise resource system, resulting
in a $1,390,911 increase from the previous fiscal year.
The Public Safety – Fire District expenses increased by $20,523,970 compared to the previous
fiscal year. This rise in government-wide level expenses is due primarily to adjustments made for
full accrual accounting conversion as the change at the governmental fund level for the Fire District
special revenue fund is $2,596,836. The cause for the increase is due to adjustments in net pension
liabilities and deferred inflows/outflows associated with the Fire District's miscellaneous and safety
pension plans. For the current fiscal year, the net expense recorded was $7,074,514. In contrast,
a reduction in expenditures by $8,742,187 was recorded in the prior year due to positive investment
returns for that measurement period. As a result, the net variance to the current fiscal year for the
net pension liabilities is $15,816,701. Additionally, changes in the Other Post-Employment Benefits
(OPEB) asset led to a reduction of $1,277,352 in the previous year and $371,484 in the current
year, resulting in a net variance of $905,868. Lastly, the Fire District's share of workers'
compensation expenses has increased, primarily due to significant outstanding claims and the
rising costs associated with these claims, resulting in an additional $1,112,981 in insurance-related
liabilities.
Engineering and public works experienced an increase due to a higher allocation of capital assets
compared to the previous year, totaling $7,269,030.
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Business-Type Activities
The $20,959,731 combined revenues, including transfers from the governmental activities, of the City's
business-type activities were $1,565,432 more than the expenses of $19,394,299. 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, 2023, the City's governmental funds reported combined fund balances of $651,924,268, an
increase of $51,805,049 from the prior fiscal year. Of the total fund balance, $23,018,987 was non-
spendable, associated with prepaid costs, deposits, and advances to other funds; $421,705,132 was
classified as restricted for specific purposes; $162,227,203 was committed by the City Council; and
$55,071,810 was assigned by the City Manager for certain uses and functions.
The City's governmental funds reported a deficit of $10,098,864 unassigned fund balance for the following
special revenue funds: Lighting Districts of $4,032,854, Pedestrian Grant of $11,556, SB1 – TCEP of
$3,736,718, State Grants of $2,066,527, Federal Grants of $59,067, Enhanced Infrastructure Financing
District of $186,678, and Opioid Settlement of $5,464. The deficit unassigned fund balance for the
Pedestrian Grant, SB1 – TCEP, State Grants, and Federal Grant special revenue funds will be eliminated
with the receipt of funds from granting agencies. The Enhanced Infrastructure Financing District special
revenue fund's deficit unassigned fund balance will be eliminated as it begins to receive incremental tax
revenues as it ran a deficit during its formation that the City temporarily covered. The Opioid Settlement
special revenue fund reported a deficit unassigned fund balance due to the temporary fair value adjustment
on its cash and investments, which were more than the interest received on receipts during the current
year. Lastly, the Lighting Districts Fund special revenue fund reports a deficit fund balance due to interfund
advances received from the City for the purchase and retrofit of streetlights. The deficit unassigned fund
balance will be eliminated as repayment of the interfund advances occurs. Refer to Note 8 for more detailed
information on the City's interfund advances.
Governmental revenues totaled $267,025,706, while expenditures were $217,130,068. Other financing
sources, including transfers from other funds, subscriptions issued, and proceeds from the sale of capital
assets, totaled $22,842,985. Other financing uses totaled $20,933,574 in the form of transfers out to other
funds.
The General Fund is the City's general operating fund. On June 30, 2023, the General Fund reported a
total fund balance of $180,98,603, consisting of $22,702,647 as non-spendable, $16,546,349 as restricted,
$107,546,210 as committed, and $34,203,397 as assigned. Further detailed information on these fund
balance classifications can be found in Notes 1 and 18 in the notes to the financial statements.
16
The following table presents the summary of revenues and expenditures of the General Fund for Fiscal
Years 2022/22 and 2020/23:
The following is a summary of the significant changes in General Fund revenues, expenditures, and other
financing sources and uses:
Taxes, which include property taxes, sales taxes, franchise fees, transient occupancy taxes, and
other taxes, represented 73.1% of total revenues and amounted to $90,082,114. Property and
sales taxes are the primary contributors to this category. The General Fund's property taxes
increased by $1,431,570, mainly due to residual receipts from the former redevelopment and a rise
in property assessments leading to increased property tax in lieu of VLF. This increase was offset
by a reduction in transfer tax, attributed to decreased property turnovers. Sales tax saw a modest
decrease of $157,043, driven by inflationary pressures that increased taxable sales but reduced
transaction volumes. Additionally, franchise fees and transient occupancy taxes rose by $716,193
and $527,067, respectively. These increases were driven by inflation affecting commodity prices
and, subsequently, gross sales, as well as a recovery in the hotel sector with increased business
and leisure travel, higher room rates post-pandemic, and the opening of a new hotel during the
fiscal year.
17
Licenses and permits increased by $549,225, or 8.8%, due to increased business licenses and
building permits.
Charges for services increased by $2,803,915 or 49.5%, primarily attributed to fees associated
with plan checks, planning, and engineering for development services, as well as revenue from
recreational activities. This includes recreation fees and ticket sales at the Lewis Family
Playhouse, which is steadily rebounding from the impacts of the pandemic.
Use of money and property increased by $7,353,017 or 160.7% because of rising interest rates
affecting investments made in recent fiscal years up to the current fiscal year. These higher rates
have not only boosted investment earnings but also offset unrealized losses from the temporary
adjustments required to bring investments to their fair value at the fiscal year-end. Typically, as
interest rates increase, the value of these investments decreases. It's important to note that these
adjustments remain unrealized until the investments are sold. Generally, securities are held until
maturity.
Miscellaneous revenue decreased by $7,382,716 or 49.3% due primarily to the City receiving
$5,150,000 from development agreements in the prior fiscal year, which is $2,000,000 more than
the current year. These agreements were intended to mitigate the impacts of increased affordable
housing demand, future greenhouse gas emissions, electric vehicle charging infrastructure needs,
and other related impacts stemming from warehouse, industrial, and commercial developments.
Additionally, in the prior fiscal year, the City recognized $5,251,397 in unclaimed property
accumulated over several decades, following compliance with State regulations.
Transfers decreased by $27,385,141 due to the prior fiscal year transfer of funding from the Federal
Grants special revenue fund to the General Fund for funds from the American Rescue Plan Act in
the amount of $26,835,530 for allowable public safety costs.
Subscriptions issued, totaling $3,102,685, are the result of accounting entries related to the
implementation of GASB Statement No. 96, Subscription-Based Information Technology
Arrangements.
The sale of capital assets decreased by $3,382,662 due to the sale of land in the prior fiscal year.
Personnel services expenditures saw a rise across several departments due to the filling of vacant
positions. Specifically, increases were observed in general government by $415,861, public safety
– animal center by $304,596, community development by $620,366, and engineering and public
works by $1,042,163 for full-time roles. Additionally, community services experienced a rise in
personnel services costs by $867,124, mainly attributed to the hiring for part-time positions.
General government expenditures rose by $2,265,001 or 14.2% from the previous fiscal year,
primarily due to increased personnel services and the additional discretionary contribution of
$3,900,000 to the CalPERS unfunded liability, as mentioned earlier. These increases were partly
offset by a net reduction of $2,254,927, which is attributed to accounting adjustments arising from
the implementation of GASB Statement No. 96, Subscription-Based Information Technology
Arrangements.
Public safety – police increased by $533,710 or 1.2% from the prior fiscal year due to increased
public safety contract costs between the City and the San Bernardino County Sheriff's Department.
Engineering and public works increased by $2,353,510 or 19.0% compared to the previous fiscal
year. This rise can be attributed to two main factors: the increase in personnel services and the
escalation in contract services related to facilities, which have ramped up as more facilities
reopened post-pandemic. In the current year, contract services for facilities alone accounted for an
increase of $620,510.
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Capital outlay increased by $4,295,539 or 137.6% due to the implementation of GASB Statement
No. 96, Subscription-Based Information Technology Arrangements.
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
$93,922,890, an increase of $11,571,893 or 14.1% from the prior fiscal year. Total revenues of $13,280,079
decreased by $1,680,408, and total expenditures of $1,703,725 decreased by $540,814 from the last fiscal
year. Although revenues exceeded expenditures in the current fiscal year, it is normal for the City to
accumulate resources in advance to complete identified capital projects over a period of time.
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 $139,805,331, an increase of $131,435 or 0.1% from the prior fiscal year. Total
revenues of $510,151 were primarily from interest on residual receipt loans from repayment received during
the year. Revenues were offset by total expenditures of $378,716 for administration. Notes and loans
receivable increased by $2,752,941 or 1.6% from the previous year due to accrued interest on outstanding
loans offset by repayments.
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 $101,952,917, which increased by $8,311,744 or 8.9% from the prior
fiscal year. Total revenues were $64,496,825, 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 $56,398,742 were incurred to provide
fire protection and suppression services, including $31,464,720 in personnel costs, which were the Fire
District's most significant expenditure. Additionally, the total expenditures included $8,184,126 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 with existing response time deficits.
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 Sports Complex, Municipal Utility, and Fiber Optic Network enterprise funds
are considered major funds.
The following table summarizes the operating results of the City's enterprise funds:
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Sports Complex
The Sports Complex accounts for the revenue and operational costs of the City's baseball facility, which is
home to the Rancho Cucamonga Quakes. Operating revenues amounted to $217,164, a modest decrease
of $29,558 or 12.0% from the previous fiscal year. Total operating expenditures were $2,452,970, an
increase of $749,776 or 44% from the last fiscal year. This rise in operating costs is mainly attributed to the
allocation of pension expenses, which created a variance of $787,340 from the prior fiscal year. This
variance is caused by the change in the net pension liability from the negative investment returns during
the measurement period, as has been previously mentioned. The Sports Complex received $1,442,944 in
transfers from the City's General Fund, a decrease of $138,282 or 8.7% compared to the prior year. These
transfers help subsidize the baseball facility's operations, as its operating revenues are insufficient to cover
the total operating costs.
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. This fiscal year, operating revenues amounted to $18,876,910, a 29.7% increase
or $4,325,557 more than the previous fiscal year. This rise is largely due to higher earnings from variable
commodity sales to customers and increased revenue from distribution line extensions for new
developments in the City's industrial sector. Additionally, this fiscal year includes the implementation of a
Power Cost Adjustment Factor for ratepayers, designed to align charges with the actual cost of wholesale
power during a billing period. This factor, which can vary above or below the Municipal Utility's base rate,
resulted in additional revenue of $893,215 for the utility in the current fiscal year.
Operating expenses totaled $16,032,760, an 18.7% increase or $2,528,923 more than the last fiscal year.
The primary reason for this rise in operating costs is the year-over-year increase in the price per unit of
wholesale power purchases.
Nonoperating revenues and expenses in the Municipal Utility saw an increase of $1,160,046 due to higher
earnings from invested funds, attributed to rising interest rates, and a smaller adjustment needed to bring
investments to fair value at the fiscal year-end compared to previous years. Capital contributions decreased
by $593,411, a variable figure largely dependent on non-recurring infrastructure donations from developers.
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.
For this fiscal year, the operating revenues of the fund reached $418,306, an increase of $91,321 or 27.9%
from the previous fiscal year. These revenues primarily comprise lease earnings from cellular towers and
fiber optic communication contracts with telecommunications companies and a local internet provider.
The Fiber Optic Network's operating expenses amounted to $625,729, showing a marginal decrease of
$4,870 or 0.8% from the previous fiscal year. This change in operating expenses can be attributed to higher
depreciation expenses resulting from the expansion of the fiber optic infrastructure backbone in recent
years and offset by a reduction in maintenance and operational costs for the network.
Nonoperating revenues and expenses for the fund rose by $447,279, mainly due to increased earnings
from invested funds influenced by rising interest rates and a lesser adjustment needed to align investments
to their fair value at the end of the fiscal year. Furthermore, the Fiber Optic Network reported receiving
$84,552 in contributed capital for fiber optic infrastructure from developers in new communities. This
contribution not only enables high-speed internet access in these areas but also expands the coverage and
subscription base of the Fiber Optic Network, as these infrastructure assets were put into service during
the current fiscal year.
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Other Proprietary Funds
The Second Story Library and Beyond 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 the 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 the net position of the proprietary funds. More detailed information on these
funds can be found in the combined statement of net position and statement of revenues, expenses, and
changes in fund net position for the internal service funds.
General Fund Budgetary Highlights
During the fiscal year, with the City's staff's 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, 2023, 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:
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Significant revenue variances at the end of the fiscal year were as follows:
Taxes: This resulted in a positive variance of $378,374 due to higher-than-anticipated sales tax
revenues and lower transfer tax revenues than anticipated in the final budget. Although sales tax
actuals decreased modestly when compared to last year, the budget for sales was reduced to
account for economic headwinds that were expected to decrease taxable sales. Instead, sales tax
exceeded its final budget by $671,296. Conversely, the transfer tax did not meet expectations as
the reduction in property sales was greater than anticipated, falling short of the budget by $384,258.
Licenses and Permits: This resulted in a positive variance of $904,891 compared to the final
budget. The variance was driven by an uptick in the issuance of business licenses and building
permits, which surpassed the budgeted expectations by $369,988 and $396,107, respectively.
These variances were indicative of positive economic activity in the City.
Charges for services: Exceeded expectations by $523,243 due to increased developer-related
services, specifically plan check, planning, and engineering fees, which collectively exceeded the
final budget by $448,667 at the fiscal year end. These service increases were expected to increase
based on receipts during the fiscal year, and as a result, the final budget was increased by
$1,510,060 from the adopted budget.
Use of money and property: There was a negative variance of $555,753, which is primarily due to
the temporary adjustment to fair value at the end of the fiscal year offsetting investment earnings,
as previously noted.
Miscellaneous Revenues: Non-recurring and one-time revenues exceeded the final budget by
$1,358,442 for the fiscal year. An example is revenues from development agreements that are
intended to mitigate the impacts of warehouse, industrial, and commercial developments in the
community, which are due to the City when certain conditions are met. This revenue exceeded the
final budget by $1,000,000. Additionally, the City received $895,083 more in mandate claim
reimbursements from the State of California than was budgeted due to the sporadic
reimbursements from the State.
Subscriptions Issued: The $3,102,685 that was not anticipated to be included in the original or final
budgets is due to the accounting associated with the implementation of GASB Statement No. 96,
Subscription-Based Information Technology Arrangements.
Significant expenditure variances at the end of the fiscal year are as follows:
General Government: Expenditures were lower than the final budget by $5,644,871, primarily due
to accounting related to the implementation of GASB Statement No. 96, Subscription-Based
Information Technology Arrangements, from which a $3,034,203 contra-expense was recorded for
the general government expenditures. These accounting entries were not budgeted as part of the
implementation. The second most notable variance was for a $1,000,000 contribution made to the
pension rate stabilization program trust fund during the fiscal year. For accounting purposes, this
contribution represents a movement of balance sheet items, i.e., cash and investment, to restricted
assets; however, the contribution is still budgeted from a budgetary control standpoint.
Public Safety - Police: Expenditures were below the final budget by $3,636,903, primarily due to
cost savings from vacant contract positions with the San Bernardino County Sheriff contract for
police services.
Community Services: Community services expenditures showed a negative variance of $891,975
because of salary savings from both full-time and part-time positions that were budgeted but
remained unfilled. Although, as noted earlier, personnel services costs have increased compared
to the previous year, they still fall short of the anticipated budgeted levels.
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Engineering and Public Works: Expenditures were below the final budget by $1,413,944, mainly
due to decreased costs in operations and maintenance, contract services, and utilities within public
works. This reduction was particularly notable in park maintenance and city facilities, where the
total spending, particularly in operations and contract services, was $785,365 less than the
allocated final budget.
Capital Outlay: Expenditures surpassed the final budget by $4,803,838, primarily due to accounting
adjustments stemming from the implementation of GASB Statement No. 96, Subscription-Based
Information Technology Arrangements. This led to a contra-expense of $5,357,612 in various
functional categories, recorded due to the implementation. These expenditures were not included
in the budget, similar to the previously mentioned variance in general government expenditures.
Debt Service: Expenditures went over the budget by $718,123, largely because of accounting
adjustments totaling $742,205 related to the implementation of GASB Statement No. 96,
Subscription-Based Information Technology Arrangements, similar to the situation in capital outlay.
Transfers Out: The variance of $4,720,754 is attributed to several unbudgeted transfers, including
$250,000 to the Second Story Library and Beyond enterprise fund to accumulate funds for future
operations, $4,200,000 to the Library Service special revenue fund for upcoming capital projects
and $900,000 to the Computer Equipment/Technology Replacement internal service fund to
address future technology replacement requirements. These transfers were not budgeted as they
are allocations based on the financial performance at the end of the fiscal year and are not
predetermined in the budget planning stages.
Capital Assets and Debt Administration
Capital Assets
The City's investment in capital assets for its governmental and business-type activities amounted to
$861,539,879, net of accumulated depreciation and amortization.
The table below presents summary information on the City's capital assets.
23
Major capital asset activities during the year are as follows:
Governmental Activities
Land increased by $6,990,830, mainly due to the acquisition of land for the Etiwanda Grade
Separation capital project. This project involves constructing a bridge over the existing Metrolink
railroad tracks on Etiwanda Avenue, stretching from Arrow Route to Napa Street. Its main
objectives are to improve safety for both vehicles and trains, support the local manufacturing and
logistics sectors, and reduce traffic congestion throughout Rancho Cucamonga. As of September
2023, this capital project is put on hold due to rising expenses and decreased funding.
Construction in progress reported a net increase of $19,216,081, comprising additions of
$30,531,350 for capital outlay and a reduction of $11,315,269 for capital assets placed into service
during the current fiscal year. Notable projects during this period included the Etiwanda Avenue
Grade Separation, which saw an expenditure of $9,398,514, of which $6,760,830 was placed into
service as land, as mentioned earlier. Other significant projects were the Second Story Library and
Beyond capital project at the Paul A. Biane Library, with additions of $3,555,318; the Central Park
Dog Park, with additions of $2,629,958; and the construction of Town Center Fire Station #178,
with additions of $8,184,128.
Total capitalized infrastructure reported a net decrease of $5,384,171, resulting in a value, net of
accumulated depreciation, of $248,791,021. This net decrease includes $2,473,081 in additions
transferred from construction in progress for various roadway projects and $1,081,797 from capital
outlay additions. Offsetting these increases were a disposal net of accumulated depreciation
totaling $42,495 and a depreciation expense of $8,896,554.
The implementation of GASB Statement No. 96, Subscription-Based Information Technology
Arrangements, added subscriptions in progress and subscription assets. More information on the
subscriptions can be found in Note 6 in the notes to the financial statements.
Business-type Activities:
The Construction in Progress reported a net increase of $2,384,957, comprising $3,306,012 in new
additions, primarily due to ongoing work on fiber optic and municipal utility line extensions. Capital
assets placed into service from construction in progress include completed segments of the fiber
optic network across various City locations, totaling $921,055.
Donated infrastructure included $492,862 for the Municipal Utility and $84,552 for the Fiber Optic
Network. This infrastructure is placed into service and expands the area of operation for both
enterprise funds.
The depreciation expense for the fiscal year is allocated among the Municipal Utility for $1,402,058,
the Fiber Optic Network for $327,732, and the Sports Complex for $559,906.
Additional information on the City's capital assets can be found in Note 7 of the notes to financial
statements. Furthermore, significant commitments that include construction contracts are identified in
Note 17 of the notes to financial statements.
Debt Administration
As of June 30, 2023, the City had $19,880,858 in debt outstanding, not including net pension liabilities.
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A summary of outstanding long-term debt with comparative amounts for the prior fiscal year is presented
below:
In the current fiscal year, the most significant change from the previous year was the addition of $2,632,400
in subscription liabilities due to the adoption of GASB Statement No. 96, Subscription-Based Information
Technology Arrangements. For more detailed information about the City's long-term debt, please refer to
the relevant notes in the financial statements, as indicated in the table provided above.
Economic Factors and Next Year's Budgets
The Adopted Budget for the City in Fiscal Year 2023/24 totals $354,000,950 in expenditures for all funds.
Out of this, $167,817,210, or 49.3%, is allocated for the expenditures of the City's operating budgets. The
components of the City's operating budget include the General Fund operating fund at $112,270,660, the
Fire District operating funds at $56,410,060, and the Library Fund at $5,863,830. The total budget
represents an increase of $84,153,790 or 31.4%, while the operating budget itself has risen by $1,872,710
or 0.5% compared to the Fiscal Year 2022/23 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 for revenues of $112,270,660, projecting an increase of
$4,737,720 from the Fiscal Year 2022/23 adopted budget, as follows:
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The General Fund's financial support comes primarily from seven key revenue streams: 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 follows a conservative approach to budgeting revenues, as
evidenced in the table above, where the actual revenues for Fiscal Year 2022/23 surpassed the adopted
budget for that year. For Fiscal Year 2023/24, various economic and financial factors have been integrated
into the adopted budget.
The sales tax revenue for Fiscal Year 2023/24 is $39,437,880, an increase of $1,463,030 or 3.85%
compared to the adopted budget for Fiscal Year 2022/23. Growth for sales tax is rooted in a detailed
analysis by the City's sales tax consultant, which evaluates current tax receipts, macroeconomic
conditions, and local business data. Those positive changes include increasing demand for taxable
goods from online shopping, where the sales tax revenues to the City are distributed from the
County pool. Additionally, strong performance in the General Consumer Goods sector, bolstered
by robust employment and consumer spending, also contributes positively to these revenue
expectations. Concerns about inflation and potential interest rate hikes may offset sales tax
revenue growth in the near future, indicating a need for cautious financial planning.
Vehicle license fees are projected at $25,527,300, an increase of $1,575,980 or 6.58% compared
to the adopted budget for Fiscal Year 2022/23. This growth reflects the City's increasing property
valuation.
Franchise fees, which include gas, electric, refuse, and cable, are expected to rise by $1,294,950
or 16.04% to $9,366,230 for the adopted budget for Fiscal Year 2023/24. Population growth, rate
changes, and activities of service providers drive the increase.
For Fiscal Year 2023/24, the City General Fund's property tax revenue is anticipated to increase
by $496,290, a growth of 4.31%. The City works with property tax consultants to forecast this
revenue accurately, taking into account various factors such as the rate of property turnover,
potential appeals exposure, anticipated construction activities, and the yearly inflation adjustment
as determined by Proposition 13.
Development fees are projected to increase by $354,020, or 6.88%, in Fiscal Year 2023/24, driven
by active development projects within the City. The exact amount of these fees will fluctuate based
on the specific phase of each project, leading to corresponding changes in building and safety,
engineering, or planning fees throughout the fiscal year. Consequently, the collection of
development fees is subject to variation annually.
For Fiscal Year 2023/24, business license revenues are projected to increase by $475,650 or
15.54% compared to the Fiscal Year 2022/23. This growth is attributed to an improving business
climate within the City, coupled with enhanced enforcement and compliance efforts, as the City
plans to increase the number of business inspections completed during the Fiscal Year. This
revenue stream reflects the economic health of the City, and its growth indicates a positive trend
in business development and an effective approach to compliance and regulation by the City.
In Fiscal Year 2023/24, the Transient Occupancy Tax (TOT) is expected to see an increase of
$219,210 or 4.26% compared to Fiscal Year 2022/23. This projected growth is largely due to
revenue from a new hotel set to open during the fiscal year, as well as increases in room rates and
occupancy levels at existing hotels. TOT revenue serves as a key indicator of the tourism and
hospitality sector's vitality in the City, which may also positively impact other revenue streams, such
as sales tax, reflecting a broader economic upswing in the City.
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Other matters that are affecting or could affect the City's future operations are as follows:
The California State Legislative Analyst Office's (LAO) report on The 2023-24 Budget: California's Fiscal
Outlook Overview indicates that California is facing a significant budget challenge for the Fiscal Year
2023-24. Various analyses at different points in time project an estimated deficit of $24 to 68 billion. This
deficit, which is the most significant since the Great Recession, arises from lower-than-expected revenue
projections. California's revenue forecasts are conservative, reflecting the possibility of an economic
downturn. While an abrupt recession is not anticipated in these projections, there remains a risk that
revenue declines could intensify if a recession does materialize.
The report also notes that much like the City, California's budget is being influenced by several critical
economic factors. These include inflation, the Federal Reserve's interest rate hikes, and challenges in the
State's labor market and supply chain, as well as the State's over-reliance on a highly progressive income
tax structure. These elements contribute significantly to the complexity of revenue forecasting and budget
planning, underscoring the necessity for strategic and adaptive fiscal management.
For more in-depth information and analysis, it is advisable to review the full report by the Legislative
Analyst's Office on their website (https://lao.ca.gov), which provides a comprehensive view of the State's
fiscal outlook and the factors impacting it.
Contacting the City's Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with
a general overview of the City of Rancho Cucamonga's finances and to show the City's accountability for
the money it receives. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Finance Department at the City of
Rancho Cucamonga, 10500 Civic Center Drive, Rancho Cucamonga, CA 91730.
27
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28
CITY OF RANCHO CUCAMONGA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 485,690,397$ 32,210,196$ 517,900,593$
Receivables:
Accounts, net of allowances 26,293,421 3,356,566 29,649,987
Taxes 10,668,619 33,000 10,701,619
Notes and loans 176,904,010 - 176,904,010
Accrued interest 2,185,202 166,507 2,351,709
Other loans 1,347,570 - 1,347,570
Grants 4,287,328 - 4,287,328
Leases 4,477,559 3,800,181 8,277,740
Internal balances 13,739,133 (13,739,133) -
Prepaid costs 973,589 - 973,589
Deposits 49,000 - 49,000
Net OPEB asset 3,781,924 - 3,781,924
Net Pension asset 3,366,403 158,081 3,524,484
Restricted assets:
Pension rate stabilization program 16,042,577 - 16,042,577
Capital assets (not being depreciated)397,942,348 9,077,406 407,019,754
Capital assets (net of accumulated depreciation/amortization)418,970,216 35,549,909 454,520,125
Total assets 1,566,719,296 70,612,713 1,637,332,009
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 56,855,004 1,537,315 58,392,319
OPEB related items 2,685,264 - 2,685,264
Total deferred outflows of resources 59,540,268 1,537,315 61,077,583
LIABILITIES
Accounts payable 13,533,872 2,048,139 15,582,011
Due to other governments 523,329 - 523,329
Accrued liabilities 2,663,294 52,762 2,716,056
Accrued interest 1,491 - 1,491
Deposits payable 7,467,554 922,382 8,389,936
Unearned revenue 7,851,253 - 7,851,253
Noncurrent liabilities:
Due within one year:
Long-term debt 972,337 - 972,337
Compensated absences 6,152,000 - 6,152,000
Claims and judgments 1,996,837 - 1,996,837
Due in more than one year:
Long-term debt 1,811,764 - 1,811,764
Compensated absences 2,814,282 - 2,814,282
Claims and judgments 2,180,014 - 2,180,014
Advances to Successor Agency 3,953,624 - 3,953,624
Net pension liability 105,486,457 3,060,071 108,546,528
Total liabilities 157,408,108 6,083,354 163,491,462
DEFERRED INFLOWS OF RESOURCES
Pension related items 14,375,383 288,193 14,663,576
OPEB related items 2,956,321 - 2,956,321
Lease related items 4,285,588 3,800,520 8,086,108
Total deferred inflows of resources 21,617,292 4,088,713 25,706,005
NET POSITION
Net investment in capital assets 814,128,463 44,627,315 858,755,778
Restricted:
Community development projects 215,515,875 - 215,515,875
Public safety 2,545,447 - 2,545,447
Parks and recreation 17,035,858 - 17,035,858
Fire protection 79,208,524 - 79,208,524
Engineering and public works 90,930,397 - 90,930,397
Community services 9,986,209 - 9,986,209
Capital projects 47,180,364 - 47,180,364
Pension rate stabilization 16,042,577 - 16,042,577
Pension 3,366,403 158,081 3,524,484
OPEB 3,781,924 - 3,781,924
Public benefit - Municipal Utility - 461,640 461,640
Second Story Library and Beyond - 271,295 271,295
Unrestricted 147,512,123 16,459,630 163,971,753
Total net position 1,447,234,164$ 61,977,961$ 1,509,212,125$
June 30, 2023
Primary Government
See accompanying notes to financial statements.29
CITY OF RANCHO CUCAMONGA
Statement of Activities
For the Year Ended June 30, 2023
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:
Primary government:
Governmental activities:
General government 24,034,094$ 11,659,179$ 979,631$ 291,588$
Public safety - police 46,384,884 1,126,473 1,571,272 163,806
Public safety - fire protection 59,429,842 155,812 139,357 -
Public safety - animal center 3,070,329 146,569 14,607 -
Community development 20,978,521 11,802,366 923,674 939,334
Community services 15,274,331 1,485,456 2,239,828 -
Engineering and public works 40,969,175 10,158,777 8,384,764 43,793,924
Interest on long-term debt 83,214 - - -
Total governmental activities 210,224,390 36,534,632 14,253,133 45,188,652
Business-type activities:
Sports Complex 2,468,360 175,549 - -
Municipal Utility 16,032,760 18,864,181 8,564 492,862
Fiber Optic Network 893,179 413,356 - 84,552
Second Story Library and Beyond - - 22,000 -
Total business-type activities 19,394,299 19,453,086 30,564 577,414
Total primary government 229,618,689 55,987,718 14,283,697 45,766,066
General revenues and transfers:
General revenues:
Property taxes levied for general purpose
Admission tax
Transient occupancy taxes
Sales taxes
Franchise taxes
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-beginning
Net position-ending
Program Revenues
See accompanying notes to financial statements.30
Governmental Business-Type
Activities Activities Total
(11,103,696)$ -$ (11,103,696)$
(43,523,333) - (43,523,333)
(59,134,673) - (59,134,673)
(2,909,153) - (2,909,153)
(7,313,147) - (7,313,147)
(11,549,047) - (11,549,047)
21,368,290 - 21,368,290
(83,214) - (83,214)
(114,247,973) - (114,247,973)
- (2,292,811) (2,292,811)
- 3,332,847 3,332,847
- (395,271) (395,271)
- 22,000 22,000
- 666,765 666,765
(114,247,973) 666,765 (113,581,208)
101,598,563 - 101,598,563
- 154,477 154,477
4,950,215 - 4,950,215
40,610,316 - 40,610,316
10,762,821 - 10,762,821
178,842 - 178,842
10,055,661 614,662 10,670,323
13,528,967 59,294 13,588,261
28,628 - 28,628
(70,234) 70,234 -
181,643,779 898,667 182,542,446
67,395,806 1,565,432 68,961,238
1,379,838,358 60,412,529 1,440,250,887
1,447,234,164$ 61,977,961$ 1,509,212,125$
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See accompanying notes to financial statements.31
CITY OF RANCHO CUCAMONGA
Balance Sheet
Governmental Funds
June 30, 2023
General
ASSETS
Cash and investments 148,789,055$ 93,625,531$ 2,717,128$ 90,468,220$
Receivables:
Accounts, net of allowances 4,524,287 358,693 - 2,232,289
Taxes 8,066,070 - - 421,600
Notes - - 176,904,010 -
Accrued interest 691,351 423,129 12,935 439,872
Other loans - - - -
Grants - - - -
Leases 363,818 - - 798,307
Prepaid costs 529,179 - 2,393 302,965
Deposits 49,000 - - -
Due from other funds 5,926,623 - - -
Advances to other funds 22,124,468 - - -
Restricted assets:
Pension rate stabilization program 4,954,206 - - 11,088,371
Total assets 196,018,057$ 94,407,353$ 179,636,466$ 105,751,624$
LIABILITIES
Accounts payable 5,036,231$ 476,975$ -$ 1,800,033$
Accrued liabilities 1,559,994 7,488 - 857,433
Unearned revenues 1,024,766 - - -
Deposits payable 7,017,539 - - -
Due to other governments - - - -
Due to other funds 33,043 - - 263,993
Advances from other funds - - - 110,163
Total liabilities 14,671,573 484,463 - 3,031,622
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 666 - 39,831,135 -
Deferred lease inflows 347,215 - - 767,085
Total deferred inflows of resources 347,881 - 39,831,135 767,085
FUND BALANCES (DEFICITS)
Nonspendable 22,702,647 - 2,393 302,965
Restricted 16,546,349 93,922,890 139,802,938 26,100,546
Committed 107,546,210 - - 54,680,993
Assigned 34,203,397 - - 20,868,413
Unassigned - - - -
Total fund balances (deficits)180,998,603 93,922,890 139,805,331 101,952,917
Total liabilities, deferred inflows of resources,
and fund balances (deficits)196,018,057$ 94,407,353$ 179,636,466$ 105,751,624$
Housing
Successor
Agency Fire District
Development
Impact Fees
Special Revenue Funds
See accompanying notes to financial statements.32
CITY OF RANCHO CUCAMONGA
Balance Sheet
Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables:
Accounts, net of allowances
Taxes
Notes
Accrued interest
Other loans
Grants
Leases
Prepaid costs
Deposits
Due from other funds
Advances to other funds
Restricted assets:
Pension rate stabilization program
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Deferred lease inflows
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total Total
Nonmajor Governmental
Funds Funds
138,551,683$ 474,151,617$
19,149,132 26,264,401
2,180,949 10,668,619
- 176,904,010
565,636 2,132,923
1,347,570 1,347,570
4,287,328 4,287,328
3,315,434 4,477,559
10,982 845,519
- 49,000
97,036 6,023,659
- 22,124,468
- 16,042,577
169,505,750$ 745,319,250$
5,017,545$ 12,330,784$
236,466 2,661,381
6,826,487 7,851,253
450,015 7,467,554
523,329 523,329
5,726,623 6,023,659
8,275,172 8,385,335
27,055,637 45,243,295
4,034,298 43,866,099
3,171,288 4,285,588
7,205,586 48,151,687
10,982 23,018,987
145,332,409 421,705,132
- 162,227,203
- 55,071,810
(10,098,864) (10,098,864)
135,244,527 651,924,268
169,505,750$ 745,319,250$
See accompanying notes to financial statements.33
THIS PAGE INTENTIONALLY LEFT BLANK
34
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
June 30, 2023
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds 651,924,268$
813,754,226
Deferred outflows-pension related 56,855,004$
Deferred outflows-OPEB related 2,685,264
Deferred inflows-pension related (14,375,383)
Deferred inflows-OPEB related (2,956,321)
Total deferred outflows and inflows related to postemployment benefits 42,208,564
Long-term receivables 43,866,099
Net pension asset 3,781,924
Net OPEB asset 3,366,403
Total other long-term assets 51,014,426
13,701,486
(1,491)
Advances from Successor Agency liability (3,953,624)
Leases and SBITA liability (2,784,101)
Compensated absences (8,966,282)
Claims and judgments liability (4,176,851)
Net pension liability (105,486,457)
Total long-term liabilities (125,367,315)
Net position of governmental activities 1,447,234,164$
Long-term liabilities that are not due and payable in the current period,and therefore,
are not reported in the funds.
CITY OF RANCHO CUCAMONGA
Capital assets,net of accumulated depreciation/amortization, used in governmental
activities are not financial resources and, therefore, are not reported in the funds.
Differences between expected and actual experiences, assumption changes and net
differences between projected and actual earnings,and contributions subsequent to the
measurement date for the postretirement benefits (pension and OPEB) are recognized
as deferred outflows of resources and deferred inflows of resources on the Statement
of Net Position.
Other long-term assets that are not available to pay for current period expenditures
and, therefore, are either labeled unavailable or not reported in the funds.
Internal service funds provide services to other funds on a cost-reimbursement basis.
The assets, deferred outflows of resources,liabilities,and deferred inflows of resources
of the internal service funds are included in governmental activities in the Statement of
Activities.
Accrued interest payable for the current postion of lease liabillity has not been reported
in the governmental funds.
See accompanying notes to financial statements.35
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2023
General
REVENUES
Taxes 90,082,114$ -$ -$ 60,270,311$
Licenses and permits 6,756,581 - - 13,255
Intergovernmental 691,118 - - 96,177
Charges for services 8,467,873 - - 4,947
Use of money and property 2,777,387 862,321 198,064 2,065,744
Fines and forfeitures 1,320,089 - - 130,911
Contributions 144,420 - - -
Developer participation - 12,414,563 - -
Miscellaneous 7,588,412 3,195 312,087 1,915,480
Total revenues 117,827,994 13,280,079 510,151 64,496,825
EXPENDITURES
Current:
General government 18,188,700 - - -
Public safety 45,533,057 1,310 - -
Public safety - fire protection - - - 47,614,483
Public safety - animal center 3,179,876 650 - -
Community development 6,974,991 - 378,716 -
Community services 6,324,679 19,880 - -
Engineering and public works 14,734,895 562,298 - -
Capital outlay 7,418,414 1,119,587 - 8,660,991
Debt service:
Principal 778,997 - - 100,322
Interest and fiscal charges 45,576 - - 22,946
Total expenditures 103,179,185 1,703,725 378,716 56,398,742
Excess (deficiency) of revenues
over (under) expenditures 14,648,809 11,576,354 131,435 8,098,083
OTHER FINANCING SOURCES (USES)
Transfers in 2,232,718 - - 866
Transfers out (12,141,264) (4,461) - (105,466)
Proceeds from sale of capital asset 35,419 - - -
Subscriptions issued 3,102,685 - - 318,261
Total other financing sources (uses)(6,770,442) (4,461) - 213,661
Net change in fund balances 7,878,367 11,571,893 131,435 8,311,744
Fund balances-beginning 173,120,236 82,350,997 139,673,896 93,641,173
Fund balances (deficit)-ending 180,998,603$ 93,922,890$ 139,805,331$ 101,952,917$
Fire District
Housing
Successor Agency
Special Revenue Funds
Development
Impact Fees
See accompanying notes to financial statements.36
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public safety - fire protection
Public safety - animal center
Community development
Community services
Engineering and public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Subscriptions issued
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Fund balances (deficit)-ending
Total Total
Nonmajor Governmental
Funds Funds
23,425,154$ 173,777,579$
154,855 6,924,691
39,650,105 40,437,400
142,034 8,614,854
1,620,477 7,523,993
- 1,451,000
999,599 1,144,019
3,323,122 15,737,685
1,595,311 11,414,485
70,910,657 267,025,706
3,874,143 22,062,843
236,881 45,771,248
80,435 47,694,918
- 3,180,526
13,947,174 21,300,881
4,208,662 10,553,221
6,456,112 21,753,305
26,611,598 43,810,590
52,929 932,248
1,766 70,288
55,469,700 217,130,068
15,440,957 49,895,638
17,046,126 19,279,710
(8,682,383) (20,933,574)
- 35,419
106,910 3,527,856
8,470,653 1,909,411
23,911,610 51,805,049
111,332,917 600,119,219
135,244,527$ 651,924,268$
See accompanying notes to financial statements.37
THIS PAGE INTENTIONALLY LEFT BLANK
38
Reconciliation of the Statement of Revenues, Expenses and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2023
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds:51,805,049$
Capital outlay 29,449,674$
Depreciation/amortization expense (21,355,014)
Total adjustment 8,094,660
5,988,655
Donations of capital assets 4,466,047
Loss/(gain) on disposal of capital assets (42,495)
Total adjustment 4,423,552
(188,243)
Change in lease assets and lease liabilities 36,792
Change in claims and judgments liability (1,048,455)
Change in SBITA assets and SBITA liabilities 2,218,128
Changes in compensated absences (337,312)
Changes in pension liabilities and related deferred outflows and inflows of resources (3,968,504)
Changes in OPEB liabilities and related deferred outflows and inflows of resources 371,484
Total adjustment (2,727,867)
Change in net position of governmental activities 67,395,806$
Internal service funds provide services to other funds on a cost-reimbursement basis. The
net revenue of certain activities of internal service funds is reported with governmental
activities.
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and,therefore, are not reported as expenditures in the governmental
funds.
CITY OF RANCHO CUCAMONGA
Governmental funds report capital outlays are expenditures. However,in the Statement of
Activities, the cost of these assets is allocated over their estimated useful lives and
reported as depreciation/amortization expense. This is the amount by which capital
outlays exceeded depreciation/amortization expense in the current period.
Revenues in the Statement of Activities that do not provide current financial resources are
not reported as revenues in the funds.
The net effect of various miscellaneous transactions involving capital assets (i.e., sales,
trade-ins, and donations) is to increase/(decrease) net position.
See accompanying notes to financial statements.39
CITY OF RANCHO CUCAMONGA
Statement of Net Position
Proprietary Funds
June 30, 2023
Other
Enterprise
Funds
ASSETS
Current assets:
Cash and investments 9,851$ 24,058,167$ 7,870,883$ 271,295$
Receivables:
Accounts 39,081 3,210,462 107,023 -
Taxes 33,000 - - -
Accrued interest 7,511 117,898 41,098 -
Leases 184,893 - 60,047 -
Prepaid costs - - - -
Total current assets 274,336 27,386,527 8,079,051 271,295
Noncurrent:
Leases 3,341,387 - 213,854 -
Net pension asset 95,794 62,287 - -
Capital assets, net 11,597,592 20,398,805 12,630,918 -
Total noncurrent assets 15,034,773 20,461,092 12,844,772 -
Total assets 15,309,109 47,847,619 20,923,823 271,295
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 874,548 662,767 - -
Total deferred outflows of resources 874,548 662,767 - -
LIABILITIES
Current liabilities:
Accounts payable 57,325 1,839,567 151,247 -
Accrued liabilities 32,472 20,290 - -
Deposits payable - 922,382 - -
Total current liabilities 89,797 2,782,239 151,247 -
Noncurrent liabilities:
Advances from other funds 1,469,893 - 12,269,240 -
Net pension liability 1,801,467 1,258,604 - -
Total noncurrent liabilities 3,271,360 1,258,604 12,269,240 -
Total liabilities 3,361,157 4,040,843 12,420,487 -
DEFERRED INFLOWS OF RESOURCES
Pension related items 172,460 115,733 - -
Lease related items 3,524,928 - 275,592 -
Total deferred inflows of resources 3,697,388 115,733 275,592 -
NET POSITION
Invested in capital assets 11,597,592 20,398,805 12,630,918 -
Restricted for public benefit - Municipal Utility - 461,640 - -
Restricted for pension 95,794 62,287 - -
Restricted for Second Story Library and Beyond - - - 271,295
Unrestricted (2,568,274) 23,431,078 (4,403,174) -
Total net position 9,125,112$ 44,353,810$ 8,227,744$ 271,295$
Business-Type Activities
Second Story
Library and
Beyond
Sports
Complex
Municipal
Utility
Fiber Optic
Network
See accompanying notes to financial statements 40
CITY OF RANCHO CUCAMONGA
Statement of Net Position
Proprietary Funds
June 30, 2023
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Leases
Prepaid costs
Total current assets
Noncurrent:
Leases
Net pension asset
Capital assets, net
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Pension related items
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Total current liabilities
Noncurrent liabilities:
Advances from other funds
Net pension liability
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related items
Lease related items
Total deferred inflows of resources
NET POSITION
Invested in capital assets
Restricted for public benefit - Municipal Utility
Restricted for pension
Restricted for Second Story Library and Beyond
Unrestricted
Total net position
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
32,210,196$ 11,538,780$
3,356,566 29,020
33,000 -
166,507 52,279
244,940 -
- 128,070
36,011,209 11,748,149
3,555,241 -
158,081 -
44,627,315 3,158,338
48,340,637 3,158,338
84,351,846 14,906,487
1,537,315 -
1,537,315 -
2,048,139 1,203,088
52,762 1,913
922,382 -
3,023,283 1,205,001
13,739,133 -
3,060,071 -
16,799,204 -
19,822,487 1,205,001
288,193 -
3,800,520 -
4,088,713 -
44,627,315 3,158,338
461,640 -
158,081 -
271,295 -
16,459,630 10,543,148
61,977,961$ 13,701,486$
Business-Type
Activities
See accompanying notes to financial statements 41
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2023
Other
Enterprise
Funds
OPERATING REVENUES
Sales and service charges 12,595$ 18,864,181$ 238,896$ -$
Interdepartmental charges - - - -
Rent 162,954 - 174,460 -
Miscellaneous 41,615 12,729 4,950 -
Total operating revenues 217,164 18,876,910 418,306 -
OPERATING EXPENSES
Salaries and benefits 1,086,616 678,438 - -
Contractual services 340,926 598,047 6,613 -
Maintenance and operations 465,522 13,354,217 291,384 -
Depreciation/amortization 559,906 1,402,058 327,732 -
Total operating expenses 2,452,970 16,032,760 625,729 -
Operating income (loss)(2,235,806) 2,844,150 (207,423) -
NONOPERATING REVENUES (EXPENSES)
Admission tax 154,477 - - -
Grant subsidy - 8,564 - -
Interest revenue 88,430 353,538 173,399 (705)
Interest expense (15,390) - (267,450) -
Total nonoperating revenues (expenses)227,517 362,102 (94,051) (705)
Income (loss) before contibutions
and transfers (2,008,289) 3,206,252 (301,474) (705)
Contributions - 492,862 84,552 22,000
Transfers in 1,442,944 - - 250,000
Transfers out - (1,622,710) - -
Change in net position (565,345) 2,076,404 (216,922) 271,295
Net position-beginning 9,690,457 42,277,406 8,444,666 -
Net position-ending 9,125,112$ 44,353,810$ 8,227,744$ 271,295$
Fiber Optic
Network
Business-Type Activities
Second Story
Library and
Beyond
Sports
Complex
Municipal
Utility
See accompanying notes to financial statements.42
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2023
OPERATING REVENUES
Sales and service charges
Interdepartmental charges
Rent
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Salaries and benefits
Contractual services
Maintenance and operations
Depreciation/amortization
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Admission tax
Grant subsidy
Interest revenue
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before contibutions
and transfers
Contributions
Transfers in
Transfers out
Change in net position
Net position-beginning
Net position-ending
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
19,115,672$ -$
- 2,252,280
337,414 1,331,430
59,294 -
19,512,380 3,583,710
1,765,054 -
945,586 2,952,134
14,111,123 994,445
2,289,696 1,577,472
19,111,459 5,524,051
400,921 (1,940,341)
154,477 -
8,564 -
614,662 166,787
(282,840) (12,926)
494,863 153,861
895,784 (1,786,480)
599,414 14,607
1,692,944 1,583,630
(1,622,710) -
1,565,432 (188,243)
60,412,529 13,889,729
61,977,961$ 13,701,486$
Business-Type
Activities
See accompanying notes to financial statements.43
CITY OF RANCHO CUCAMONGA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Other
Enterprise
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 197,910$ 18,002,498$ 361,244$ -$
Receipts from interfund service provided - - - -
Payments to suppliers and service providers (799,226) (12,769,409) (237,098) -
Payments to employees for salaries and benefits (1,037,020) (859,947) - -
Net cash provided by (used for)
operating activities (1,638,336) 4,373,142 124,146 -
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 1,442,944 - - 250,000
Transfers out - (1,622,710) - -
Payments from other funds on interfund borrowings - - 267,449 -
Payments to other funds on interfund borrowings (127,171) - - -
Operating grants - 8,564 - -
Admission tax 154,477 - - -
Contributions - - - 22,000
Net cash provided by (used for)
noncapital financing activities 1,470,250 (1,614,146) 267,449 272,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets - (2,941,507) (645,885) -
Principal paid on capital debt - - - -
Interest paid on capital debt (15,390) - (267,450) -
Net cash provided by (used for)
capital and related financing activities (15,390) (2,941,507) (913,335) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 87,329 311,993 132,608 (705)
Net cash provided by (used for)
investing activities 87,329 311,993 132,608 (705)
Net increase (decrease) in
cash and cash equivalents (96,147) 129,482 (389,132) 271,295
Cash and cash equivalents-beginning 105,998 23,928,685 8,260,015 -
Cash and cash equivalents-ending 9,851$ 24,058,167$ 7,870,883$ 271,295$
Business-Type Activities
Sports
Complex
Municipal
Utility
Fiber Optic
Network
Second Story
Library and
Beyond
See accompanying notes to financial statements.44
CITY OF RANCHO CUCAMONGA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023 (Continued)
Other
Enterprise
Funds
Business-Type Activities
Sports
Complex
Municipal
Utility
Fiber Optic
Network
Second Story
Library and
Beyond
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)(2,235,806)$ 2,844,150$ (207,423)$ -$
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 559,906 1,402,058 327,732 -
(Increase) decrease in accounts receivable (2,122) (899,191) (52,292) -
(Increase) decrease in leases receivable (391,082) - 58,975 -
(Increase) decrease in prepaid items - 382,093 - -
(Increase) decrease in pension-related deferred outflows (634,685) (491,542) - -
Increase (decrease) in accounts payable (34,393) 800,762 55,949 -
Increase (decrease) in accrued liabilities 5,627 2,102 - -
Increase (decrease) in deposits payable - 24,779 - -
Increase (decrease) in net pension liability 136,389 122,070 - -
Increase (decrease) in net OPEB liability 1,113,919 685,069 - -
Increase (decrease) in pension-related deferred inflows (571,654) (499,208) - -
Increase (decrease) in lease-related deferred inflows 415,565 - (58,795) -
Total adjustments 597,470 1,528,992 331,569 -
Net cash provided by (used for)
operating activities (1,638,336)$ 4,373,142$ 124,146$ -$
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Contributions of capital assets -$ 492,862$ 84,552$ -$
See accompanying notes to financial statements.45
CITY OF RANCHO CUCAMONGA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Receipts from interfund service provided
Payments to suppliers and service providers
Payments to employees for salaries and benefits
Net cash provided by (used for)
operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in
Transfers out
Payments from other funds on interfund borrowings
Payments to other funds on interfund borrowings
Operating grants
Admission tax
Contributions
Net cash provided by (used for)
noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Net cash provided by (used for)
capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Net cash provided by (used for)
investing activities
Net increase (decrease) in
cash and cash equivalents
Cash and cash equivalents-beginning
Cash and cash equivalents-ending
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
18,561,652$ -$
- 3,583,710
(13,805,733) (2,848,360)
(1,896,967) -
2,858,952 735,350
1,692,944 1,583,630
(1,622,710) -
267,449 -
(127,171) -
8,564 -
154,477 -
22,000 14,607
395,553 1,598,237
(3,587,392) (561,875)
- (507,340)
(282,840) (19,990)
(3,870,232) (1,089,205)
531,225 129,388
531,225 129,388
(84,502) 1,373,770
32,294,698 10,165,010
32,210,196$ 11,538,780$
Business-Type
Activities
See accompanying notes to financial statements.46
CITY OF RANCHO CUCAMONGA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense
(Increase) decrease in accounts receivable
(Increase) decrease in leases receivable
(Increase) decrease in prepaid items
(Increase) decrease in pension-related deferred outflows
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in net pension liability
Increase (decrease) in net OPEB liability
Increase (decrease) in pension-related deferred inflows
Increase (decrease) in lease-related deferred inflows
Total adjustments
Net cash provided by (used for)
operating activities
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Contributions of capital assets
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
Business-Type
Activities
400,921$ (1,940,341)$
2,289,696 1,577,472
(953,605) -
(332,107) -
382,093 98,247
(1,126,227) -
822,318 998,059
7,729 1,913
24,779 -
258,459 -
1,798,988 -
(1,070,862) -
356,770 -
2,458,031 2,675,691
2,858,952$ 735,350$
577,414$ -$
See accompanying notes to financial statements.47
Private
Purpose
Trust Funds
Successor
Agency of the Custodial
Former RDA Funds
ASSETS
Cash and investments 22,716,922$ 7,050,133$
Receivables:
Accounts - 2,016
Taxes - 36,116
Accrued interest - 31,363
Developer loans 10,259,967 -
Prepaid bond insurance 1,030,400 -
Advances to City 3,953,624 -
Restricted assets:
Cash and investments with fiscal agents 15,471 4,304,126
Total assets 37,976,384 11,423,754
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 1,785,080 -
Total deferred outflows of resources 1,785,080 -
LIABILITIES
Accrued interest 3,634,028 -
Long-term liabilities
Due in one year 15,470,615 -
Due in more than one year 217,203,552 -
Total liabilities 236,308,195 -
DEFERRED INFLOWS OF RESOURCES
Deferred charges on refunding 1,261,827 -
Total deferred inflows of resources 1,261,827 -
NET POSITION
Restricted for:
Organizations and other governments (197,808,558) 11,423,754
Total net position (197,808,558)$ 11,423,754$
CITY OF RANCHO CUCAMONGA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
See accompanying notes to financial statements 48
Private
Purpose
Trust Funds
Successor
Agency of the Custodial
Former RDA Funds
ADDITIONS
Collection of special taxes 27,414,768$ 6,126,803$
Investment earnings:
Interest 35,994 176,604
Change in fair value of investments - 1,929
Contributions from City - 945,884
Total additions 27,450,762 7,251,220
DEDUCTIONS
Administrative expenses - 234,718
Contractual services 1,024,724 -
Interest expense 9,567,187 2,347,351
Principal expense - 3,464,000
Payment to City 250,000 -
Total deductions 10,841,911 6,046,069
Net increase (decrease) in fiduciary net position 16,608,851 1,205,151
Due to Bondholders (Net position)-beginning (214,417,409) 10,218,603
Due to Bondholders (Net position)-ending (197,808,558)$ 11,423,754$
CITY OF RANCHO CUCAMONGA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
See accompanying notes to financial statements 49
THIS PAGE INTENTIONALLY LEFT BLANK
50
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
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), the Rancho Cucamonga Public Financing Authority (the Financing
Authority) and the Rancho Cucamonga Enhanced Infrastructure Financing District Public Financing Authority
(the EIFD).
2. The Improvement Corporation, the Fire District, the Library, the Financing Authority, and the EIFD 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, the Financing Authority, and the EIFD 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.
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.
51
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The EIFD Financing Authority was established on February 16, 2022, pursuant to Part 1 of Division 2 of Title 5 of
the California Government Code (the “EIFD Law”) as the governing body of the Rancho Cucamonga Enhanced
infrastructure Financing District. Separate financial statements are available for the EIFD.
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.
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.
52
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 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 City reports the following major proprietary funds:
The Sports Complex Fund accounts for personnel and operating costs directly associated with the operation of
the City’s baseball facility, which is the home of the Rancho Cucamonga Quakes.
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.
The City reports one nonmajor proprietary fund. The Second Story and Beyond Fund accounts for personnel and
operating costs directly associated with the operation of the Second Story and Beyond facility, which is an addition
to the Paul Biane Public Library.
Additionally, the City reports the following fund types:
Special revenue funds are used to account for the proceeds of specific revenue sources (other than for major
capital projects) that are restricted by law or administrative action to expenditures for specified purposes.
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.
53
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
54
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital Assets
Capital assets, which include land, building improvements, improvements other than buildings, computer equipment
and software, equipment and vehicles, furniture and fixtures, lease assets, subscription-based information
technology arrangements, 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.
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.
55
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
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, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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, 2022
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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 (CalPERS), 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, 2022
Measurement Period July 1, 2021 to June 30, 2022
56
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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
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)
57
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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: 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.
Facilities Capital Replacement
The City’s General Fund balance and the Fire District’s fund balance committed for facilities capital replacement 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.
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, including applicable fringe
benefits and the annual allocation from the City’s cost allocation plan.
58
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 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.
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.
59
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
60
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Engineering and Public Works includes all maintenance, engineering and capital improvements which relate
to streets, parks, flood control and other public facilities.
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, 2023:
B. Deficit Fund Balances or Net Position
The following nonmajor special revenue funds reported deficits in fund balance at June 30, 2023:
The deficit in the Lighting Districts Fund will be eliminated by the repayment of the interfund advance from the
General Fund described in Note 8. The deficits in the Pedestrian Grant, SB1 – TCEP, State Grants, Federal Grants,
Enhanced Infrastructure Financing District, and Opiod Settlement special revenue funds will be eliminated by future
expected revenue sources.
NOTE 3: CASH AND INVESTMENTS
As of June 30, 2023, cash and investments were reported in the accompanying financial statements as follows:
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.
General Fund 7,652,048$
Development Impact Fees 436,205
Fire District 13,347,068
Other Governmental Funds 9,941,893
Lighting Districts 4,032,854$
Pedestrian Grant 11,556
SB1 - TCEP 3,736,718
State Grants 2,066,527
Federal Grants 59,067
Enhanced Infrastructure Financing District 186,678
Opioid Settlement 5,464
Cash and Investments 485,690,397$ 32,210,196$ 7,050,133$ 22,716,922$ 547,667,648$
Restricted
Cash with fiscal agent - - 4,304,126 15,471 4,319,597
Pension rate stabilization fund 16,042,577 - - - 16,042,577
Total Cash and Investments:501,732,974$ 32,210,196$ 11,354,259$ 22,732,393$ 568,029,822$
Total Cash and
Investments
Governmental
Activities
Business-Type
Activities Custodial Funds
Private-Purpose
Trust Funds
61
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Deposits
At June 30, 2023, the carrying amount of the City’s deposits was $33,549,256 and the bank balance was
$34,456,170. The $906,914 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 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)
Local Government Investment Pool (LGIP)
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.
62
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Local Government Investment Pool
The City is a voluntary participant in the California Asset Management Program (CAMP). CAMP is an investment
pool offered by the California Asset Management Trust and created through a joint powers agency as a pooled
short-term portfolio and cash management vehicle for California public agencies under California Government Code
Section 53601(p). CAMP is governed by a seven-member Board of Trustees comprised of finance directors and
treasurers of California public agencies. The City reports its investments in CAMP at the fair value amounts provided
by CAMP and is exempt from the fair value hierarchy.
Credit Risk
As of June 30, 2023, the City's investments in corporate bonds were A3 of better by Moody’s. As of
June 30, 2023, 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, 2023, 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, 2023, the City’s deposits (bank balances)
were insured by the FDIC up to $250,000 and the remaining balances were collateralized under California Law.
Concentration of Credit Risk
The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments.
As of June 30, 2023, in accordance with GASB Statement No. 40, if the City has invested more than 5% of its total
investments in any one issuer, it is exposed to credit risk. There were no investments considered exposed to credit
risk at June 30, 2023. Investments guaranteed by the U.S. government and investments in mutual funds and
external investment pools are excluded from this.
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses
arising from increasing interest rates. The City's investment policy establishes a maximum maturity of 180 days for
Banker’s Acceptances, 270 days for Commercial Paper, one year for Repurchase Agreements and five years for
all other individual investments. The only exception to these maturity limits shall be the investment of the gross
proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure
for its interest rate risk.
63
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
As of June 30, 2023, the City had the following investments and original maturities:
6 months
or less
6 months
to 1 year
1 year
to 3 years
3 years
to 5 years Fair Value
Investments
Local Agency Investment Fund 842,522$ -$ -$ -$ 842,522$
California Asset Management Program 142,969,926 - - - 142,969,926
Federal Governmental Agencies
Federal Farm Credit Bank - - 3,072,158 - 3,072,158
Federal Home Loan Bank - 4,972,915 5,664,917 - 10,637,832
Federal Home Loan Mortgage Corporation - - 2,085,783 - 2,085,783
Federal National Mortgage Association - - 16,673,849 - 16,673,849
Municipal Bonds 498,790 - - - 498,790
Corporate Notes - 2,924,233 31,308,867 56,358,703 90,591,803
Certificate of Deposit - - 1,136,771 - 1,136,771
Negotiable CD - - 1,498,986 - 1,498,986
US Treasury Note 1,954,844 19,285,586 127,331,651 77,730,063 226,302,144
Supernational - - 6,815,543 - 6,815,543
Money Market 1,649,811 - - - 1,649,811
Asset-Backed Security - - 5,226,969 4,115,505 9,342,474
Restricted investments
Mutual Fund 16,042,577 - - - 16,042,577
Investment with Fiscal Agents:
Money Market Fund 4,319,597 - - - 4,319,597
168,278,067$ 27,182,734$ 200,815,494$ 138,204,271$ 534,480,566$
Investment Maturities (in Years)
64
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
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, 2023:
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.
Fair Value Level 1 Level 2 Unrated
Investments:
Local Agency Investment Fund 842,522$ -$ -$ 842,522$
California Asset Management Program 142,969,926 - - 142,969,926
Federal Governmental Agencies
Federal Farm Credit Bank 3,072,158 3,072,158 - -
Federal Home Loan Bank 10,637,832 10,637,832 - -
Federal Home Loan Mortgage Corporation 2,085,783 2,085,783 - -
Federal National Mortgage Association 16,673,849 16,673,849 - -
Municipal Bonds 498,790 498,790 - -
Corporate Notes 90,591,803 - 90,591,803 -
Certificate of Deposit 1,136,771 - 1,136,771 -
Negotiable CD 1,498,986 - 1,498,986 -
US Treasury Note 226,302,144 226,302,144 - -
Supernational 6,815,543 - 6,815,543 -
Money Market 1,649,811 1,649,811 - -
Asset-Backed Security 9,342,474 - 9,342,474 -
Restricted investments
Mutual Fund 16,042,577 - - 16,042,577
Investment with Fiscal Agents:
Money Market Fund 4,319,597 4,319,597 - -
534,480,566$ 265,239,964$ 109,385,577$ 159,855,025$
65
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 4: NOTES AND LOANS RECEIVABLES
Notes and loans receivables consist of the following at June 30, 2023:
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, 2023, the advances paid against this
line of credit amount to $40,457,658 and accrued interest amounts to $5,109,477 for a total of $45,567,135.
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 habilitate 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 preceding year. Upon dissolution of the Agency, the loan receivable was transferred to the Housing
Successor Agency of the City. As of June 30, 2023, advances paid against this line of credit amounts to
$21,638,113 and accrued interest amounts to $7,051,937 for a total balance of $28,690,050. 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 $9,000,000. Simple interest accrues on the advances as follows: 1) 3% per annum from the date
of disbursement through and including the date immediately prior to September 21, 2022; and 2) 2% per annum
from September 21, 2022 through September 21, 2060. In addition, to the extent there are Residual
Receipts-, the Developer shall pay to the Agency either 33% or 50% of the Residual Receipts from the
preceding year. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor
Governmental Activities
NHDC (San Sevaine) 45,282,651$ 404,577$ (120,093)$ 45,567,135$
LINC-Pepperwood Housing Investors, LP 28,257,288 432,762 - 28,690,050
HB Housing Partners, L.P.13,143,008 200,219 (36,331) 13,306,896
SCHDC (Rancho Verde)7,844,806 97,499 (5,993) 7,936,312
SCHDC (Heritage Pointe Senior Apartments) 3,163,882 221,570 - 3,385,452
Rancho Workforce Housing, L.P.34,142,678 814,644 - 34,957,322
North Town Housing Partners (Villa Del Norte) 10,583,811 177,875 - 10,761,686
NHDC (Olen Jones Senior Apartments)4,451,850 128,232 - 4,580,082
Villa Pacifica II LP 9,832,863 260,515 - 10,093,378
Day Creek Senior Housing Partners 2, L.P. 9,086,763 260,742 - 9,347,505
Day Creek Senior Housing Partners, L.P.5,385,661 156,723 - 5,542,384
First-Time Homebuyer Program 2,975,808 - (240,000) 2,735,808
174,151,069$ 3,155,358$ (402,417)$ 176,904,010$
Beginning
Balance Additions Reductions
Ending
Balance
66
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 4: NOTES AND LOANS RECEIVABLES (CONTINUED)
Agency of the City. As of June 30, 2023, the advances paid against this line of credit amounted to $9,000,000
and accrued interest amounts to $4,306,896 for a total of $13,306,896. 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, 2023, the advances paid against this line of credit amounted to
$6,499,910 and accrued interest amounts to $1,436,402 for a total of $7,936,312. Accrued interest is offset by
deferred revenue.
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 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, 2023, the advances paid against this line of credit
amounted to $3,228,808 and accrued interest amounts to $156,644 for a total of $3,385,452. Accrued interest
is offset by deferred revenue.
5. 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, 2023, the advances paid against this line of credit
amounted to $25,868,857 and accrued interest amounts to $9,088,465 for a total of $34,957,322.
6. 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
67
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 4: NOTES AND LOANS RECEIVABLES (CONTINUED)
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, 2023, the outstanding balance amounts to $10,761,686, including
accrued interest of $4,832,505. Accrued interest is offset by deferred revenue.
7. 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, 2023, the outstanding balance amounts to $4,274,400 and accrued interest amounts to including
$305,682 for a total of $4,580,082. Accrued interest is offset by deferred revenue.
8. 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, 2023, the advances paid against this line of credit amounted to $8,683,821 and
accrued interest amounted of $1,409,557, for a total amount of $10,093,378.
9. 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, 2023, the
outstanding balances of the land loans are as follows: (a) Day Creek Senior Housing Partners, LP amounts to
$5,542,384 including $646,081 accrued interest and (b) Day Creek Senior Housing Partners 2, L.P. amounts
to $3,173,653 including $369,956 accrued interest. Accrued interest is offset by deferred revenue.
68
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
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, 2023, the outstanding balance is $6,173,852 including accrued interest of
$473,852. Accrued interest is offset by deferred revenue.
10. 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, 2023, the outstanding balance amounts
to $2,735,808 with no interest due.
Total notes and loans receivables for governmental activities at June 30, 2023, including accrued interest of
$35,187,454 amounted to $176,904,010.
NOTE 5: LEASES
Leases are financings of the right to use an underlying asset. A lessee is required to recognize a lease liability and
an intangible right-to-use lease asset. A lessor is required to recognize a lease receivable and a deferred inflow of
resources.
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 leases land to Goals Soccer
Centers, Inc. to operate a soccer sports complex. The term is 45 years as of the contract commencement date.
Finally, the City entered into a 104 month lease as Lessor for the use of Rancho Cucamonga Quakes Stadium.
Some leases have extension options ranging from five to twenty years. As of June 30, 2023, the value of the lease
receivable is $8,277,740. The value of the deferred inflow of resources as of June 30, 2023 was $8,086,108, and
the City recognized lease revenue of $550,971 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 $24,857.
The principal and interest payments that are expected to maturity are as follows:
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2024 305,186$ 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 346,802 62,479 409,281
2029 - 2033 1,717,559 213,705 1,931,264
2034 - 2038 615,060 97,544 712,604
2039 - 2043 341,088 45,982 387,070
2044 - 2048 196,334 6,358 202,692
4,477,559$ 734,664$ 5,212,223$
Governmental Activities
69
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
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. As of June 30, 2023, the value of the lease liability is $151,701. The City is required to make annual
fixed payments of $39,086. The lease has an interest rate of 1.217%.
Right-to-use leased assets include the following at June 30, 2023:
Future principal and interest requirements to maturity for each lease liability are as follows:
NOTE 6: SUBSCRIPTION-BASED TECHNOLOGY ARRANGEMENTS
For the year ended June 30, 2023, the financial statements include the adoption of GASB Statement
No. 96, Subscription-Based Information Technology Arrangements. The primary objective of this statement is to
enhance the relevance and consistency of information about governments' subscription activities. This statement
establishes a single model for subscription accounting based on the principle that subscriptions are financings of
the right to use an underlying asset. Under this Statement, an organization is required to recognize a subscription
liability and an intangible right-to-use subscription asset. For additional information, refer to the disclosures below.
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2024 244,940$ 92,702$ $ 337,642
2025 250,679 87,368 338,047
2026 229,414 81,900 311,314
2027 137,155 76,719 213,873
2028 66,934 74,875 141,809
2029 - 2033 254,489 354,689 609,178
2034 - 2038 292,069 319,750 611,819
2039 - 2043 334,982 279,682 614,665
2044 - 2048 341,498 235,647 577,144
2049 - 2053 386,141 188,859 575,000
2054 - 2058 439,314 135,686 575,000
2059 - 2063 499,809 75,191 575,000
2064 - 2066 322,757 12,658 335,417
3,800,181$ 2,015,726$ 5,815,908$
Business-Type Activities
Lease Asset
Amount of
Leased Capital
Assets
Accumulated
Amortization
Land Lease 226,622$ 71,408$
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
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 151,701$ 4,643$ 156,344$
Governmental Activities
70
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 6: SUBSCRIPTION-BASED TECHNOLOGY ARRANGEMENTS (CONTINUED)
Subscription Liability
The City has 12 subscription-based information technology arrangements (SBITAs) for the use of various software
as of the end of the fiscal year. The City is required to make annual payment through fiscal year 2029. As of
June 30, 2023, the subscriptions liability amounts to $2,632,400. The subscription payments include interest rates
ranging from 0.000% to 2.682%. The value of the subscription asset as of June 30, 2023, is $3,547,357 with
accumulated amortization of $951,756.
Future principal and interest requirements to maturity are as follows:
The amount of subscription assets at June 30, 2023 was as follows:
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2024 935,097$ 48,835$ 983,932$
2025 921,514 29,681 951,195
2026 494,804 10,215 505,019
2027 214,717 2,278 216,995
2028 50,606 780 51,386
2029 15,662 395 16,057
2,632,400$ 92,184$ 2,724,584$
Governmental Activities
Assets
Subscription
Assets
Accumulated
Amortization
Subscription-in-progress 2,254,927$ -$
Subscription assets 3,547,357 951,756
Total 5,802,284$ 951,756$
71
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 7: CAPITAL ASSETS
Governmental activities capital assets for the year ended June 30, 2023, was as follows:
Depreciation /amortization expense was charged to functions/programs of the primary government as follows:
Balance Balance
July 1, 2022 Additions Deletions Transfers June 30, 2023
Governmental activities:
Capital assets, not being depreciated/amortized
Land 99,349,032$ 230,000$ -$ 6,760,830$ 106,339,862$
Right of way 237,230,155 - - - 237,230,155
Subscription-in-progress - 2,254,927 - - 2,254,927
Construction-in-progress 32,901,323 30,531,350 - (11,315,269) 52,117,404
Total capital assets, not being depreciated/amortized 369,480,510 33,016,277 - (4,554,439) 397,942,348
Capital assets, being depreciated/amortized
Buildings 234,031,546 141,520 - 1,019,023 235,192,089
Improvements other than buildings 44,868,007 109,208 - 311,962 45,289,177
Machinery, equipment, and vehicles 58,496,059 1,431,966 (59) 750,373 60,678,339
Furniture and fixtures 3,547,780 - - - 3,547,780
Leased assets 226,622 - - - 226,622
Subscription assets - 3,547,357 - - 3,547,357
Infrastructure 513,567,047 1,081,797 (228,735) 2,473,081 516,893,190
Intangibles 3,328,862 - - - 3,328,862
Total capital assets, being depreciated/amortized 858,065,923 6,311,848 (228,794) 4,554,439 868,703,416
Less accumulated depreciation/amortization
Buildings (88,161,291) (7,906,834) - - (96,068,125)
Improvements other than buildings (23,052,183) (1,895,695) - - (24,947,878)
Machinery, equipment, and vehicles (49,523,356) (3,033,559) 59 - (52,556,856)
Furniture and fixtures (3,502,690) (8,110) - - (3,510,800)
Leased assets (35,704) (35,704) - - (71,408)
Subscription assets - (951,756) - - (951,756)
Infrastructure (259,391,855) (8,896,554) 186,240 - (268,102,169)
Intangibles (3,319,934) (204,274) - - (3,524,208)
Total accumulated depreciation/amortization (426,987,013) (22,932,486) 186,299 - (449,733,200)
Total capital assets, being depreciated/amortized, net 431,078,910 (16,620,638) (42,495) 4,554,439 418,970,216
Total governmental activities capital assets 800,559,420$ 16,395,639$ (42,495)$ -$ 816,912,564$
General government 1,139,177$
Public safety - police 613,636
Public safety - fire protection 3,907,897
Engineering and public works 10,540,382
Community development 102,914
Community services 5,051,008
Internal service 1,577,472
Total depreciation/amortization expense 22,932,486$
72
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 7: CAPITAL ASSETS (CONTINUED)
Business-type activities capital assets for the year ended June 30, 2023, was as follows:
Depreciation/amortization expense was charged to funds of the business-type activities as follows:
Balance Balance
July 1, 2022 Additions Deletions Transfers June 30, 2023
Business-type activities:
Capital assets, not being depreciated
Land 5,451,015$ -$ -$ -$ 5,451,015$
Construction-in-progress 1,241,434 3,306,012 - (921,055) 3,626,391
Total capital assets, not being depreciated 6,692,449 3,306,012 - (921,055) 9,077,406
Capital assets, being depreciated/amortized
Buildings and improvements 17,225,973 - - - 17,225,973
Improvements other than buildings 6,368,130 - - - 6,368,130
Machinery, equipment, and vehicles 702,151 - - - 702,151
Infrastructure 44,688,805 858,791 - 921,055 46,468,651
Total capital assets, being depreciated 68,985,059 858,791 - 921,055 70,764,905
Less accumulated depreciation
Buildings and improvements (12,494,842) (431,072) - - (12,925,914)
Improvements other than buildings (4,392,778) (128,834) - - (4,521,612)
Machinery, equipment, and vehicles (583,992) (17,436) - - (601,428)
Infrastructure (15,453,688) (1,712,354) - - (17,166,042)
Total accumulated depreciation (32,925,300) (2,289,696) - - (35,214,996)
Total capital assets, being depreciated, net 36,059,759 (1,430,905) - 921,055 35,549,909
Total business-type activities capital assets 42,752,208$ 1,875,107$ -$ -$ 44,627,315$
Sports Complex 559,906$
Municipal Utility 1,402,058
Fiber Optic Network 327,732
Total depreciation/amortization expense 2,289,696$
73
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 8: INTERFUND RECEIVABLE, PAYABLE AND TRANSFERS
The composition of interfund balances as of June 30, 2023, was as follows:
Due To/From Other Funds
Amounts due to other funds with the General Fund and the Fire District are for their estimated allocation of tax
increment owed to the Enhanced Infrastructure Financing District. Amounts 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, 2023.
Advances To/From Other Funds
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, 2023, the outstanding balance amounted to
$110,163.
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, 2023, the outstanding balance
amounted to $1,469,893.
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 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 invenory 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, 2023, the outstanding balance amounted to $8,275,172.
Other
General Fire Governmental
Funds Fund District Funds Total
Due from other funds:
General Fund -$ 200,000$ 5,726,623$ 5,926,623$
Other Governmental Funds 33,043 63,993 - 97,036
33,043$ 263,993$ 5,726,623$ 6,023,659$
Due to other funds
Other
Fire Sports Fiber Optic Governmental
Funds District Complex Network Funds Total
Advance from other funds:
General Fund 110,163$ 1,469,893$ 12,269,240$ 8,275,172$ 22,124,468$
Advances to Other Funds
74
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 8: INTERFUND RECEIVABLE, PAYABLE AND TRANSFERS (CONTINUED)
Interfund Transfers
The General Fund transferred $1,442,944, $8,970,156 and $250,000 to the Sports Complex, the Nonmajor
Governmental Funds and Nonmajor Enterprise Funds, respectively, to cover the costs of operations. Also, the General
Fund transferred $1,478,164 to the Internal Service Funds to provide funding for the subscription-based IT
implementation.
The Development Impact Fees Fund transferred $4,461 to the Nonmajor Governmental Funds to cover the cost of
operations.
The Fire District Fund transferred $105,466 to the Internal Service Funds to cover the cost of operations.
The Municipal Utility transferred $1,622,710 to the General Fund to cover the cost of operations.
The Nonmajor Governmental Funds transferred $610,008, $866 and $8,071,509 to the General Fund, Fire District
and other Nonmajor Governmental Funds, respectively, to cover budgeted expenditures for operations.
NOTE 9: LONG-TERM DEBT OBLIGATION
Governmental Activities
The following is a schedule of changes in governmental activities long-term debt for the fiscal year ended
June 30, 2023:
General Development Fire Municipal Nonmajor
Funds Fund Impact Fees District Utility Governmental Total
Transfers In
General Fund -$ -$ -$ 1,622,710$ 610,008$ 2,232,718$
Fire District - - - - 866 866
Sports Complex 1,442,944 - - - - 1,442,944
Internal Service Funds 1,478,164 - 105,466 - - 1,583,630
Nonmajor Governmental 8,970,156 4,461 - - 8,071,509 17,046,126
Nonmajor Enterprise 250,000 - - - - 250,000
12,141,264$ 4,461$ 105,466$ 1,622,710$ 8,682,383$ 22,556,284$
Transfers Out
Beginning Ending Due Within
Balance Additions Repayments Balance One Year
Financed Purchase
Dell Blade Servers 507,340$ -$ 507,340$ -$ -$
Lease Liability (Note 5)188,493 - 36,792 151,701 37,240
Subscription liabillity (Note 6)- 3,527,856 895,456 2,632,400 935,097
Total 695,833$ 3,527,856$ 1,439,588$ 2,784,101$ 972,337$
75
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 9: LONG-TERM DEBT OBLIGATION (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 final payment on the purchase agreement was made during fiscal year 2023.
NOTE 10: 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, 2023, the outstanding amount of the advance was $3,953,624.
NOTE 11: COMPENSATED ABSENCES
The City’s policies relating to compensated absences are described in Note 1. The liability will be paid in future
years by the General Fund and the Fire District Fund as it becomes due.
Balance Balance Due in
June 30, 2022 Addtions Deletions June 30, 2023 One Year
Governmental Activities:
Compensated absences 8,628,970$ 6,246,511$ 5,909,199$ 8,966,282$ 6,152,000$
76
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 12: 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, 2023, were as follows:
NOTE 13: PENSION PLAN OBLIGATIONS
Outstanding
Amount at
June 30, 2023
City of Rancho Cucamonga:
Special Tax Refunding Bond, Series 2015:
Community Facilities District No. 2000-01 148,000$
Community Facilities District No. 2000-02 1,477,000
Community Facilities District No. 2001-01 Series A 4,585,000
Community Facilities District No. 2001-01 Series B 444,000
Community Facilities District No. 2006-01 2,839,000
Community Facilities District No. 2006-02 1,686,000
Community Facilities District No. 2000-03 5,129,000
Community Facilities District No. 2003-01 Series A 10,580,000
Community Facilities District No. 2003-01 Series B 2,038,000
Community Facilities District No. 2004-01 24,661,000
Multi-Family Housing Revenue Bond:
Series 1997A 1,135,373
Total 54,722,373$
Successor Agency of the Former Rancho Cucamonga
Net Pension Liability
Net Pension
Asset
Deferred Pension
Outflows
Deferred Pension
Inflows
Pension
Expense
(Revenue)
CalPERS
City Miscellaneous Plan (64,045,443)$ -$ 28,399,261$ (2,640,249)$ (2,771,891)$
Fire District Miscellaneous Plan (3,624,318) - 1,700,187 (161,164) (720,496)
Fire District Safety Plan (40,876,767) - 23,045,352 (8,249,345) 7,795,010
Total CalPERS (108,546,528) - 53,144,800 (11,050,758) 4,302,623
PARS (see Note 14) - 3,524,484 5,247,519 (3,612,818) (473,761)
Total Pension Plans (108,546,528)$ 3,524,484$ 58,392,319$ (14,663,576)$ 3,828,862$
77
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: 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 CalPERS’ 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.
Employees Covered
As of June 30, 2022, the following employees were covered by the benefit terms of the Plan:
Tier I *Tier 2*Tier 3 PEPRA
Hire date Prior to or on
September 1, 2010
On or after
September 1,
2010 but prior to
July 3, 2011
July 4, 2011
and after
On or after
January 1, 2013
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
Monthly benefits, as a % of
eligible compensation
2.000% - 2.500%
50 yrs - 55+ yrs,
respectively
2.000% - 2.500%,
50 yrs - 55+ yrs,
respectively
1.426% - 2.418%,
50 yrs - 63+ yrs,
respectively
1.000% - 2.500%,
52 yrs - 67+ yrs,
respectively
Required employee contribution rates 8.000%8.000%7.000%6.500%
Required employer contribution rates 10.810%10.810% 10.130%7.100%
* Plan is closed to new entrants
Miscellaneous Plan
Number of Members
Description City Miscellaneous Plan
Active members 357
Transferred members 253
Separated members 413
Retired members and beneficiaries 379
Total 1,402
78
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: PENSION PLAN OBLIGATIONS (CONTINUED)
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 CalPERS’
annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance
the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded
accrued liability. The employer is required to contribute the difference between the actuarially determined rate and
the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.
Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms
as plan member contribution requirements are classified as plan member contributions.
For the year ended June 30, 2023, the employer contributions recognized as a reduction to net pension liability for
the Plan were $6,735,527.
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, 2022, using an annual actuarial valuation as of
June 30, 2021. 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 valuation was used to determine the June 30, 2022 total pension liability, based on the following
actuarial methods and assumptions:
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
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS’ Membership Data for
all Funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until
Purchasing Power Protection Allowance floor
on purchasing power applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on
the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates
include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more
details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from
November 2021 that can be found on the CalPERS website.
79
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: PENSION PLAN OBLIGATIONS (CONTINUED)
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:
1 - An expected inflation of 2.30% used for this period.
2 - Figures are based on the 2021 Asset Liability Management study.
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current member
contribution rates and that contributions from employers will be made at 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.
Events Subsequent to the Actuarial Valuation Date
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based
on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a
reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of
0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management
(ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and
the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with
the new capital market assumptions, economic assumptions and administrative expense assumption support a
discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial
reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as
recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study
also recommended 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.
Assumed
asset
Asset Class allocation Real return
1-2
Global Equity - Cap-weighted 30.00%4.54%
Global Equity - Non-cap-weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
Total 100.00%
80
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: 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.
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 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount
rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current
rate:
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.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2021), the net pension liability was $26,008,806. For the
measurement period ending June 30, 2022 (the measurement date), the City incurred a pension revenue of
$2,771,891 for the Plan.
Total Pension Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension
Liability/(Assets)
(c)=(a)-(b)
Balance at: 6/30/2021 (Valuation Date) 255,984,984$ 229,976,178$ 26,008,806$
Changes Recognized for the Measurement Period:
Service Cost 4,645,530 - 4,645,530
Interest on the Total Pension Liability 17,859,530 - 17,859,530
Changes of Assumptions 9,509,378 - 9,509,378
Difference between Expected and Actual
Experience (2,743,605) - (2,743,605)
Contribution from the Employer - 6,735,527 (6,735,527)
Contributions from Employees - 1,836,998 (1,836,998)
Net Investment Income - (17,195,068) 17,195,068
Benefit Payments including Refunds of Employee
Contributions (12,479,507) (12,479,507) -
Administrative Expense - (143,261) 143,261
Net Changes During 2021-22 16,791,326 (21,245,311) 38,036,637
Balance at: 6/30/2022 (Measurement Date) 272,776,310$ 208,730,867$ 64,045,443$
Increase (Decrease)
Discount Rate - 1%
(5.90%)
Current Discount
Rate (6.90%)
Discount Rate +1%
(7.90%)
Plan's Net Pension Liability/(Assets) 101,802,429$ 64,045,443$ 33,061,151$
81
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: PENSION PLAN OBLIGATIONS (CONTINUED)
As of June 30, 2023, the following were the reported deferred outflows of resources and deferred inflows of
resources related to the pension plan:
Contributions subsequent to the measurement date in the amount of $11,399,836 are reported as deferred outflows
of resources and will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other
amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as
pension expense as follows:
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 (CalPERS). 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.
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Current year contributions that
occurred after the measurement date 11,399,836$ -$
Changes of assumptions 6,339,585 -
Difference between expected and
actual experience 119,648 (2,640,249)
Net Difference between Projected and
Actual Earnings on Pension Plan 10,540,192 -
Total 28,399,261$ (2,640,249)$
Miscellaneous Pension Plan
Measurement Period
ended June 30:
Net Deferred
Outflows/(Inflows) of
Resources
2023 3,443,449$
2024 3,603,998
2025 730,171
2026 6,581,558
14,359,176$
82
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: PENSION PLAN OBLIGATIONS (CONTINUED)
* Plan is closed to new entrants
Employees Covered
As of the valuation date of June 30, 2021, the following employees were covered by the benefit terms of the Plans:
Tier 1 *Tier 2 *PEPRA
Hire date Prior to
July 9, 2011
July 9, 2011
but prior to January 1,
2013
January 1, 2013 and
after
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 lif e
Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs
Monthly benefits, as a % of eligible compensation 2.000% - 2.500%, 50
yrs - 55+ yrs,
respectively
1.426% - 2.418%, 50
yrs - 63+ yrs,
respectively
1.000% - 2.500%, 52
yrs - 67+ yrs,
respectively
Required employee contribution rates 8.000%7.000%6.750%
Required employer contribution rates 12.200%10.340%7.590%
Fire District Miscellaneous Cost-Sharing Plans
Tier 1 *Tier 2 *PEPRA
Hire date Prior to
July 9, 2011
July 9, 2011
but prior to January 1,
2013
January 1, 2013 and
after
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 compensation 3.000%, 50+ yr s 2.400% - 3.000%, 50
yrs - 55+ yrs,
respectively
2.000% - 2.700%, 50
yrs - 57+ yrs,
respectively
Required employee contribution rates 9.000%9.000%13.000%
Required employer contribution rates 23.710%20.640%13.130%
Fire District Safet y Cost-Sharing Plans
Description
Fire Miscellaneous
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
Number of Members
83
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: PENSION PLAN OBLIGATIONS (CONTINUED)
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, 2023, the employer contributions recognized as a reduction to net pension liability was
$406,745 for the Miscellaneous Plan and $9,113,770 for the Safety Plan for a total of $9,520,515 for the plans.
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, 2022, using an annual actuarial valuation as of
June 30, 2021. 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 valuation was rolled forward to determine the June 30, 2022 total pension liability, based on the
following actuarial methods and assumptions:
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.
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS’ Membership Data for all Funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing
Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality
are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and
Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020
published by the Society of Actuaries. For more details on this table, please refer to the CalPERS
Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on
the CalPERS website.
84
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: PENSION PLAN OBLIGATIONS (CONTINUED)
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:
1 - An expected inflation of 2.30% used for this period.
2 - Figures are based on the 2021 Asset Liability Management study.
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, 2023, the Fire District reported a net pension liability of $3,624,318 for its proportionate shares of
the Miscellaneous Plan and $40,876,767 for its proportionate shares of the Safety Plan for a total of $44,501,085
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, 2022, 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, 2021. 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.
Assumed
asset
Asset Class allocation Real return
1-2
Global Equity - Cap-weighted 30.00%4.54%
Global Equity - Non-cap-weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
Total 100.00%
85
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: PENSION PLAN OBLIGATIONS (CONTINUED)
The Fire District’s proportionate share of the net pension liability for each rate Plan as of June 30, 2021 and 2022,
was as follows:
For the year ended June 30, 2023, the Fire District recognized pension expense (revenue) of $(720,496) and
$7,795,010 for the Miscellaneous Plan and the Safety Plan, respectively.
As of June 30, 2023, the following were the reported deferred outflows of resources and deferred inflows of
resources related to the pension plans:
The Miscellaneous Plan reported $433,129 and the Safety Plan reported $9,243,848 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 subsequent fiscal year. Other amounts reported as deferred outflows or deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Fire
Miscellaneous
Plan
Fire
Safety Plan
Proportion - June 30, 2021 0.0953% 0.5576%
Proportion - June 30, 2022 0.0775% 0.5949%
Changes - Increase (Decrease)-0.0178% 0.0373%
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Current year contributions that occurred after
the measurement date $ 433,129 -$ $ 9,243,848 -$
Change of assumptions 371,387 - 4,121,616 -
Difference between expected and actual
experience 72,783 (48,747) 1,691,741 (443,889)
Net difference between projected and actual
earnings on pension plan investments 663,879 - 6,455,013 -
Adjustment due to difference in proportions 159,009 (2,490) 253,924 (7,588,680)
Difference in actual contribution and
proportionate share of contribution calculation - (109,927) 1,279,210 (216,776)
Total 1,700,187$ (161,164)$ 23,045,352$ (8,249,345)$
Miscellaneous Safet y
Measurement Period
Ended June 30, Miscellaneous Safety
2023 445,012$ 3,698,327$
2024 173,966 450,844
2025 153,382 162,714
2026 90,878 (74,481)
2020 242,656 1,314,755
Total 1,105,894$ 5,552,159$
Net Deferred Outflows/(Inflows)
86
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 13: 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 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount
rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current
rate:
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 14: PARS RETIREMENT ENHANCEMENT PLAN
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.
Net pension Liability
Discount
Rate
5.90%
Current
Discount
6.90%
Discount
Rate 7.90%
Fire District Miscellaneous Plan $ 5,464,688 $ 3,624,318 $2,110,149
Fire District Safety Plan 65,032,499 40,876,767 21,134,914
87
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 14: 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.
Hire date on or after December 1, 2002
Benefit formula one-twelfth of the product of the number of full and parti al
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
eligible compensation
N/A - not based on % of eligible compensation
Required employee contribution rates 0.000%
Required employer contribution rates 4.400%
* This plan is closed to new entrants
PARS Retirement Enhancement Plan *
Employees Covered
As of the measurement date of June 30, 2022, the following employees were covered by the benefit terms of the
Plan:
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, 2022, actuarial valuation
which positively impacted the actuarially determined rate. For the year ended June 30, 2023, the employer
contributions recognized as a decrease to the pension liability were $547,799.
.
Description Number of Members
Active members 139
Inactive members ent*itled to future benefits 1
Retired/disabled 156
Surviving spouses/beneficiaries 4
Total 300
88
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 14: PARS RETIREMENT ENHANCEMENT PLAN (CONTINUED)
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 pension liability of the Plan is measured as of June 30, 2022 using an annual actuarial valuation as
of June 30, 2022. 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, 2022 total pension liabilities were based on the following actuarial methods and assumptions:
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.
Actuarial Valuation Date June 30, 2022
Actuarial Cost Method Entry Age Normal Cost Method in accordanc e with the requirements of
GASB 68
Actuarial Assumptions
Discount Rate 5.50%
Inflation 2.50%
Expected return on plan assets 5.50%
Asset valuation method Market value of assets
Mortality Based on assumptions for Public Agency Miscellaneous E mployees
published in the 2021 CalPERS Experience Study. These tables include
generational mortality improvement using 80% of scale MP-2020.
Target Real
Asset Class Allocation Return
US Equity - Large Cap 26.50% 4.20%
US Equity - Mid Cap 5.00% 4.20%
US Equity - Small Cap 7.50% 4.40%
International Equity 6.00% 4.60%
Emerging Market Equitiy 3.25% 4.60%
REITs 1.75% 3.70%
Short-term Bond 10.00% 0.90%
Intermediate-term Bond 33.50% 1.60%
High Yield Bond 1.50% 3.70%
Cash and Equivalents 5.00% 0.10%
Total 100.00% 2.00%
89
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 14: 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.
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 5.50 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 (4.50 percent) or 1 percentage-point higher (6.50 percent) than the current rate:
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period, July 1, 2021, the net pension asset was $9,657,127. For the
measurement period ending June 30, 2022, the measurement date, the City incurred a pension income of $473,761
for the Plan.
As of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Total Pension Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension
Liability (Asset)
(c)=(a)-(b)
Balance at: June 30, 2021 (measurement date) 31,282,106$ 40,939,233$ (9,657,127)$
Changes Recognized for the Measurement Period:
Service Cost 462,828 - 462,828
Interest on the Total Pension Liability 1,867,197 - 1,867,197
Difference between Expected and Actual Experience (2,701,648) - (2,701,648)
Changes of Assumptions 1,680,083 - 1,680,083
Contributions from the Employer - 547,799 (547,799)
Net Investment Income - (5,309,778) 5,309,778
Benefit Payments including Refunds of Employee
Contributions (1,249,979) (1,249,979) -
Administrative Expenses - (62,204) 62,204
Net Changes During 2021/22 58,481 (6,074,162) 6,132,643
Balance at: June 30, 2022 (measurement date) 31,340,587$ 34,865,071$ (3,524,484)$
Increase (Decrease)
Discount Rate - 1%
(4.50%)
Current Discount
Rate (5.50%)
Discount Rate +1%
(6.50%)
Plan's Net Pension Liability (Assets) 791,923$ (3,524,484)$ (7,103,018)$
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Current year contributions that occurred after the
measurement date 506,916$ -$
Difference between Expected and Actual Experiences - (3,264,211)
Change of Assumption 1,556,529 (348,607)
Net Difference between Projected and Actual Earnings
on Pension Plan Investments 3,184,074 -
Total 5,247,519$ (3,612,818)$
90
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 14: PARS RETIREMENT ENHANCEMENT PLAN (CONTINUED)
The PARS Plan reported $506,916 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 subsequent fiscal year. Other
amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as
pension expense as follows:
NOTE 15: 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 (CalPERS). 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.
Employees Covered
As of the June 30, 2022, measurement date, the following current and former employees were covered by the
benefit terms under the Plan:
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, 2022, actuarial valuation. These contributions are netted against
the reimbursements received from the CERBT. During the June 30, 2022, measurement period, the City paid
$1,027,571 in premiums for retiree medical insurance and was reimbursed $1,287,571 and the implied subsidy was
$273,000, for a total contribution of $13,000.
Measurement Period
ended June 30:
Deferred
Outflows/(Inflows)
of Resources
2023 68,465$
2024 25,375
2025 (151,100)
2026 (2,582)
2027 1,235,057
2028 (47,430)
Total 1,127,785$
Description Number of Members
Active employees 116
Retired 84
Inactives entitled but not receiving benefits 10
Total 210
91
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 15: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Net OPEB Asset
The City’s net OPEB asset was measured as of June 30, 2022 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:
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%.
Actuarial Valuation Date June 30, 2021
Actuarial Cost Method Entyry Age Normal
Actuarial Assumptions
Discount Rate 5.25% at June 30, 2022
Inflation 2.50% annually
Salary Increases Aggregate - 2.75% annually
Longevity Increases Rates from CalPERS 2000-2019 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2021
Healthcare Trend Rate Non-Medicare - 6.50% for 2023, decreasing to an ultimate 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%
Long-term
Target Expected Real
Asset Class Alocation Rate of Return
Global Equity 23% 4.56%
Fixed Income 51% 1.56%
TIPS 9% -0.08%
Commodities 3% 1.22%
REITs 14% 4.06%
Total 100.00%
92
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 15: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
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 the OPEB Liability/(Asset)
The changes in the net OPEB liability/asset for the Plan are as follows:
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, 2022:
Total Pension Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension Liability
(Asset)
(c)=(a)-(b)
Balance at: June 30, 2021 (measurement date) 25,779,571$ 34,942,129$ (9,162,558)$
Changes Recognized for the Measurement Period:
Service Cost 315,155 - 315,155
Interest on the Total Pension Liability 1,335,833 - 1,335,833
Contributions from the Employer - 15,729 (15,729)
Net Investment Income - (3,733,741) 3,733,741
Benefit Payments including Refunds of Employee
Contributions (1,300,571) (1,300,571) -
Administrative Expenses - (11,634) 11,634
Net Changes During 2021/22 350,417 (5,030,217) 5,380,634
Balance at: June 30, 2022 (measurement date) 26,129,988$ 29,911,912$ (3,781,924)$
Increase (Decrease)
Discount Rate - 1%
(4.25%)
Current Discount
Rate (5.25%)
Discount Rate +1%
(6.25%)
Plan's Net OPEB Liability (Assets)(432,988)$ (3,781,924)$ (6,555,880)$
Discount Rate
93
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 15: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
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, 2022:
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, 2023, the City recognized OPEB income of $351,610. As of June 30, 2023, the
City reported deferred outflows of resources related to OPEB from the following sources:
The $3,741 reported as deferred outflows of resources related to contributions subsequent to the measurement
date will be recognized as an increase of the net OPEB asset during the subsequent fiscal year. Other amounts
reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
1% Decrease to
Healthcare Trend
Assumption
Current
Healthcare Trend
Assumption
1% Increase to
Healthcare Trend
Assumption
Plan's Net OPEB Liability (Assets) (6,871,267)$ (3,781,924)$ (41,315)$
Healthcare Trend Rate
Deferred Outflows
of Resources
Deferred Inflows
of Resources
OPEB contributi ons subsequent to
measurement date 3,741$ -$
Differences between expected and actual
experiences - 2,029,250
Changes of assumptions - 927,071
Net difference between projected and
actual earnings on OPEB plan investments 2,681,523 -
Total 2,685,264$ 2,956,321$
Fiscal Deferred
Period Ended Outflows/(Inflows)
June 30, of Resources
2024 (238,891)$
2025 (131,867)
2026 (80,276)
2027 440,606
2028 (150,712)
Thereafter (113,658)
Total (274,798)$
94
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 16: 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 (lBNRs). 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-jpa.org; or by calling (916) 927-7727.
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 $7,884,078 is adequate to cover such losses. The liability will be paid as it
becomes due by the General Fund and the Fire District Fund.
95
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 16: SUMMARY DISCLOSURE OF SELF INSURANCE CONTINGENCIES (CONTINUED)
The following is a summary of the changes in the claims liability over the past two fiscal years for the City and the
Fire District combined:
NOTE 17: COMMITMENTS AND CONTINGENCIES
The following schedule summarizes the major contractual commitments as of June 30, 2023:
Current Year Claims
Beginning and Changes in Claim Ending Due in
Balance Estimates Payments Balance One Year
June 30, 2022 2,558,984$ 1,715,378$ (1,145,966)$ 3,128,396$ 767,975$
June 30, 2023 3,128,396 2,532,122 (1,483,667) 4,176,851 1,996,837
Fiscal Year
Ended
Expenditures
to date as of Remaining
Project Name Contract Amount June 30, 2023 Commitments
Local Street Rehabilitation 4,310,100$ 3,844,194$ 465,906$
Town Center Fire Station (178) 18,955,990 11,171,197 7,784,793
Second Story Library and Beyond Museum 6,441,030 4,125,142 2,315,888
Fiber Optic Network 10,817,780 3,250,526 7,567,254
Etiwanda Grade Separation 5,872,930 5,469,129 403,801
Municipal Utility Line Extensions 6,782,760 2,634,124 4,148,636
Community Dog Park 4,589,880 3,474,865 1,115,015
Civic Center HVAC Replacement 2,358,750 21,750 2,337,000
96
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 18: 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, 2023, is as follows:
General Fund
Development
Impact Fees
Housing
Successor
Agency Fire District
Other
Governmental
Funds Total
Nonspendable:
Prepaid costs 529,179$ -$ 2,393$ 302,965$ 10,982$ 845,519$
Deposits 49,000 - - - - 49,000
22,124,468 - - - - 22,124,468
Total Nonspendable 22,702,647 - 2,393 302,965 10,982 23,018,987
Restricted for:
Community development projects - - 139,802,938 - 2,115,251 141,918,189
Public safety - Police - 1,091,983 - - 1,453,464 2,545,447
Parks and recreation - 16,441,464 - - 594,394 17,035,858
Engineering and public works - 74,824,860 - - 16,105,537 90,930,397
Capital improvement projects 4,305,813 - - 12,531,286 30,210,721 47,047,820
Street lighting - - - - 47,936,134 47,936,134
Underground utilities - - - - 12,757,391 12,757,391
Landscape maintenance - - - - 25,661,552 25,661,552
Library services - 1,564,583 - - 8,497,965 10,062,548
Contractual obligations 3,014,452 - - 355,854 - 3,370,306
General plan update 900,683 - - - - 900,683
PERS rate stabilization 5,704,206 - - 12,988,371 - 18,692,577
Technology replacement 2,395,908 - - 225,035 - 2,620,943
225,287 - - - - 225,287
Total Restricted 16,546,349 93,922,890 139,802,938 26,100,546 145,332,409 421,705,132
Committed to:
Law enforcement 10,662,869 - - - - 10,662,869
Vehicle and equipment replacement - - - 6,228,110 - 6,228,110
Working capital 5,613,533 - - 24,366,570 - 29,980,103
City facilities capital repair 35,844,927 - - 7,073,236 - 42,918,163
Changes in economic circumstances 27,256,176 - - 11,223,786 - 38,479,962
Employee leave payouts 4,291,379 - - 4,772,230 - 9,063,609
Self-insurance 8,721,395 - - - - 8,721,395
8,084,078 - - - - 8,084,078
Seasonal weather emergency reserve 418,880 - - - - 418,880
- - - 439,261 - 439,261
Community benefit projects 6,652,973 - - - - 6,652,973
Public safety personnel affordable housing - - - 577,800 - 577,800
Total Committed 107,546,210 - - 54,680,993 - 162,227,203
Assigned to:
Radio system acquisition 550,697 - - 3,005,044 - 3,555,741
Capital infrastructure projects 24,475,604 - - - - 24,475,604
Economic development special projects 3,252,525 - - - - 3,252,525
Animal Center operations 1,700,354 - - - - 1,700,354
Sphere of influence issues 1,108,604 - - - - 1,108,604
Mobile home park program 204,110 - - - - 204,110
Continuing operations 153,060 - - 457,644 - 610,704
Community services recreation programs 1,831,277 - - - - 1,831,277
Community services cultural programs 427,166 - - - - 427,166
Harrow and Epicenter master plan 500,000 - - - - 500,000
Capital projects - - - 17,405,725 - 17,405,725
Total Assigned 34,203,397 - - 20,868,413 - 55,071,810
Unassigned - - - - (10,098,864) (10,098,864)
Totals 180,998,603$ 93,922,890$ 139,805,331$ 101,952,917$ 135,244,527$ 651,924,268$
Special Revenue Funds
Advances to other funds
SB1186 certified access specialist services
Economic development strategic reserve
PASIS worker's compensation tail claims
97
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVLEOPMENT 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:
B. Loans Receivable
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 I-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, 2023, the outstanding balance was $10,259,967.
Cash and investments 22,716,922$
Cash and investments with fiscal agent 15,471
22,732,393$
98
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVLEOPMENT AGENCY
(CONTINUED)
C. Long-Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of
June 30, 2023, follows:
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 $62,640,000 Term bonds due September 1, 2031, bearing
interest at 6.262%. Interest on both Series A and B bonds is payable semi-annually on March 1 and September
1 of each year, commencing March 1, 2008.
The 2007 bonds are secured and payable from Tax Revenues on a subordinate basis with respect to a Loan
Agreement dated as of December 15, 1997, between the Agency, Northtown Housing Development
Corporation and Pacific Life Insurance Company (Loan Payable-Bank of New York) – the Senior Loan. The
Indenture does not permit additional senior obligations. The Agency is permitted under the Indenture to incur
additional obligations – Parity Bonds – secured by a pledge of Tax Revenues on a parity basis with the pledge
of Tax Revenues to the 2007 Bonds. Tax Revenues which secure the 2007 Bonds consist solely of the Housing
Set-Aside.
Balance Balance Due Within
July 1, 2022 Additions Repayments June 30, 2023 One Year
Tax Allocation Bonds
Tax Allocation Refunding
Bonds - 2007 Issue 52,190,000$ -$ 3,040,000$ 49,150,000$ 3,225,000$
Tax Allocation Refunding
Bonds - 2014 Issue 124,135,000 - 8,735,000 115,400,000 9,175,000
Tax Allocation Refunding
Bonds - 2016 Issue 48,160,000 - 1,870,000 46,290,000 1,965,000
Total Bonds 224,485,000 - 13,645,000 210,840,000 14,365,000
Developer Loans
Bank of New York 4,637,940 - 1,014,580 3,623,360 1,105,615
Total 229,122,940$ -$ 14,659,580$ 214,463,360 15,470,615$
Unamortized Premium 18,210,807
Total 232,674,167$
99
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVLEOPMENT AGENCY
(CONTINUED)
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.
The balance at June 30, 2023, amounted to $49,150,000 plus unamortized bond premium of $183,387. The
following schedule illustrates the debt service requirements to maturity for the 2007 Tax Allocation Refunding
Bonds as of June 30, 2023:
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, 2023, amounted to $115,400,000 plus unamortized bond premium of $13,415,535 and
unamortized gain on defeasance of $1,261,827.
Principal Interest
2024 3,225,000$ 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 7,920,000 1,942,786
2029-2034 27,065,000 2,634,580
Total 49,150,000$ 15,181,593$
Year Ending
June 30
100
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVLEOPMENT AGENCY
(CONTINUED)
The following schedule illustrates the debt service requirements to maturity for the 2014 Tax Allocation
Refunding Bonds as of June 30, 2023:
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, 2023, amounted to $46,290,000 plus unamortized bond premium of $4,611,885 and
unamortized loss on defeasance of $1,785,080.
The following schedule illustrates the debt service requirements to maturity for the 2016 Tax Allocation
Refunding Bonds as of June 30, 2023:
Principal Interest
2024 9,175,000$ 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 11,150,000 3,514,000
2029-2034 64,705,000 8,403,625
Total 115,400,000$ 31,163,500$
Year Ending
June 30
Principal Interest
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 - 1,512,800
2029-2034 18,085,000 6,851,100
2035-2039 19,735,000 797,100
Total 46,290,000$ 16,085,200$
Year Ending
June 30
101
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVLEOPMENT AGENCY
(CONTINUED)
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, 2023, amounted to $3,623,360.
The following schedule illustrates the debt service requirements to maturity for the Bank of New York loan as of
June 30, 2023:
All outstanding principal and interest due under this note shall be due and payable in full on the earliest of
March 15, 2026, or the date of an event of default.
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 $277,470,293 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 $27,414,768 and the debt service obligation on the bonds was $26,189,380.
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, 2023, is $1,187,200.
Principal Interest
2024 1,105,615$ 294,385$
2025 1,204,820 195,180
2026 1,312,925 87,075
Total 3,623,360$ 576,640$
Year Ending
June 30
102
CITY OF RANCHO CUCAMONGA
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVLEOPMENT AGENCY
(CONTINUED)
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 16.
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, 2023, the Agency made payments totaling $671,781.
103
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104
REQUIRED SUPPLEMENTARY
INFORMATION
105
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106
CITY OF RANCHO CUCAMONGA
Notes to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2023
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, 2023, the AB 2928 Traffic Congestion Relief fund had no adopted budget due
to the timing of the usage of these funds. Money will be budgeted as needed based on specific projects.
For the fiscal year ended June 30, 2023, the following funds had excess expenditures over appropriations due to
the close out of the SAFETEA-LU Grant and Proposition 1B special revenue funds and certain capital project funds.
For CFD 2018-01 Empire Lakes special revenue fund, the excess is the result of encumbrance for future
annexations which will be paid for by deposits from developers.
Expenditures Appropriations Excess
Special revenue funds
SAFETEA-LU Grant 491,818$ 488,890$ 2,928$
Proposition 1B 304,656 283,170 21,486
CFD 2018-01 Empire Lakes 174,257 159,930 14,327
Capital projets funds 6,842,345 6,803,940 38,405
107
CITY OF RANCHO CUCAMONGA
General Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 173,120,236$ 173,120,236$ 173,120,236$ -$
Resources (Inflows):
Taxes 86,462,450 89,703,740 90,082,114 378,374
Licenses and permits 5,025,220 5,851,690 6,756,581 904,891
Intergovernmental 787,840 778,500 691,118 (87,382)
Charges for services 7,861,470 7,944,630 8,467,873 523,243
Use of money and property 2,333,780 3,333,140 2,777,387 (555,753)
Fines and forfeitures 1,338,090 1,067,910 1,320,089 252,179
Contributions 141,000 151,000 144,420 (6,580)
Miscellaneous 4,320,570 6,229,970 7,588,412 1,358,442
Transfers in 1,693,830 2,212,350 2,232,718 20,368
Proceeds from sale of capital assetls 79,500 80,700 35,419 (45,281)
Subscriptions issued - - 3,102,685 3,102,685
Amounts Available for Appropriations 283,163,986 290,473,866 296,319,052 5,845,186
Charges to Appropriations (Outflow):
General government
General overhead 4,192,510 9,576,480 8,205,849 1,370,631
Personnel overhead 3,239,550 1,387,930 1,353,881 34,049
City council 128,250 107,770 97,045 10,725
City management 1,212,300 1,115,000 1,111,382 3,618
City clerk 2,010 2,090 2,069 21
Administrative services 224,340 292,290 290,789 1,501
Business licensing 429,650 371,360 342,068 29,292
City facilities 1,143,940 1,283,610 1,206,066 77,544
Finance 1,850,760 1,761,950 1,700,390 61,560
Innovation and technology 4,857,890 4,972,310 1,479,809 3,492,501
Human resources 760,470 830,100 717,139 112,961
Procurement 262,700 256,140 254,107 2,033
Risk management 313,410 506,980 345,888 161,092
Treasury management 27,890 31,680 31,606 74
Community affairs 543,740 485,620 454,655 30,965
Records management 1,108,730 819,250 564,385 254,865
Healthy RC program 641,680 633,000 631,561 1,439
Public safety - police
Sheriff contract services 49,561,410 49,224,190 45,587,287 3,636,903
Public safety - animal center
Animal center 3,640,100 3,388,080 3,185,650 202,430
Community development
Planning 2,185,510 4,104,310 3,998,853 105,457
Planning commission 21,590 21,590 17,704 3,886
Economic and community devloepment 874,930 856,150 791,676 64,474
Administration 2,322,440 2,387,210 2,289,338 97,872
Building and safety 2,487,870 2,258,240 2,081,934 176,306
Community services
Administration 2,191,950 2,081,990 1,859,945 222,045
Central Park 1,453,340 1,016,870 908,765 108,105
Lions Center 637,640 147,290 113,252 34,038
RC Family Resource Center 155,560 143,890 141,525 2,365
RC Sports Center 611,250 471,990 405,357 66,633
Special events 506,850 494,330 399,070 95,260
Victoria Gardens Cultural Center 3,167,720 2,145,550 1,821,874 323,676
Contract classes 610,630 477,620 467,147 10,473
Park services 444,290 313,980 284,600 29,380
Engineering and public works
Engineering administration 875,300 842,230 780,726 61,504
Development management 1,354,720 1,416,010 1,262,634 153,376
NPDES 338,830 329,120 320,051 9,069
Project management 840,300 675,770 661,486 14,284
Traffic management 304,470 391,690 247,908 143,782
Park maintenance 2,884,920 2,834,940 2,408,325 426,615
Vehicle and equipment maintenance 2,290,360 2,387,150 2,297,915 89,235
City facilities maintenance 4,559,120 4,733,140 4,374,391 358,749
Street maintenance 2,302,980 2,342,230 2,202,554 139,676
Fire facilities maintenance 401,390 422,710 405,056 17,654
Capital outlay 8,148,300 7,099,110 11,902,948 (4,803,838)
Debt service:
Principal retirement 100,230 100,230 778,997 (678,767)
Interest and fiscal charges 6,220 6,220 45,576 (39,356)
Transfers out 4,249,260 7,420,510 12,141,264 (4,720,754)
Total Charges to Appropriations 120,469,300 124,967,900 122,972,497 1,995,403
Budgetary Fund Balance, June 30 (Budgetary Basis)162,694,686$ 165,505,966$ 173,346,555 7,840,589$
Encumbrances 7,652,048
Budgetary Fund Balance, June 30 (GAAP Basis)180,998,603$
See Notes to Required Supplementary Information 108
CITY OF RANCHO CUCAMONGA
Development Impact Fees
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 82,350,997$ 82,350,997$ 82,350,997$ -$
Resources (Inflows):
Use of money and property 707,700 1,490,300 862,321 (627,979)
Developer participation 5,555,670 11,943,650 12,414,563 470,913
Miscellaneous - - 3,195 3,195
Amounts Available for Appropriations 88,614,367 95,784,947 95,631,076 (153,871)
Charges to Appropriation (Outflow):
Public safety - police 1,280 1,310 1,310 -
Public safety - animal services 630 650 650 -
Community services 375,110 75,580 19,880 55,700
Engineering and public works 535,650 567,130 562,298 4,832
Capital outlay 10,765,520 3,494,900 1,555,792 1,939,108
Transfers out - 4,470 4,461 9
Total Charges to Appropriations 11,678,190 4,144,040 2,144,391 1,999,649
Budgetary Fund Balance, June 30 (Budgetary Basis)76,936,177$ 91,640,907$ 93,486,685 1,845,778$
Encumbrances 436,205
Budgetary Fund Balance, June 30 (GAAP Basis)93,922,890$
See Notes to Required Supplementary Information.109
CITY OF RANCHO CUCAMONGA
Housing Successor Agency
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 139,673,896$ 139,673,896$ 139,673,896$ -$
Resources (Inflows):
Use of money and property 17,550 207,730 198,064 (9,666)
Miscellaneous 12,000 312,090 312,087 (3)
Amounts Available for Appropriations 139,703,446 140,193,716 140,184,047 (9,669)
Charges to Appropriation (Outflow):
Community development 383,600 378,740 378,716 24
Total Charges to Appropriations 383,600 378,740 378,716 24
Budgetary Fund Balance, June 30 (Budgetary Basis)139,319,846$ 139,814,976$ 139,805,331 (9,645)$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)139,805,331$
See Notes to Required Supplementary Information.110
CITY OF RANCHO CUCAMONGA
Fire District
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 93,641,173$ 93,641,173$ 93,641,173$ -$
Resources (Inflows):
Taxes 57,845,380 59,514,320 60,270,311 755,991
Licenses and permits 16,500 15,500 13,255 (2,245)
Intergovernmental - - 96,177 96,177
Charges for services 1,860 3,080 4,947 1,867
Use of money and property 560,660 1,702,310 2,065,744 363,434
Fines and forfeitures 148,000 156,000 130,911 (25,089)
Miscellaneous 2,457,310 1,995,390 1,915,480 (79,910)
Transfers in - 2,000 866 (1,134)
Subscriptions issued - - 318,261 318,261
Amounts Available for Appropriations 154,670,883 157,029,773 158,457,125 1,427,352
Charges to Appropriation (Outflow):
Public safety - fire protection 50,767,610 52,882,500 48,430,266 4,452,234
Capital outlay 18,821,520 21,059,700 21,192,276 (132,576)
Debt service:
Principal retirement 385,560 385,560 100,322 285,238
Interest and fiscal charges 14,430 14,440 22,946 (8,506)
Transfers out 105,470 105,480 105,466 14
Total Charges to Appropriations 70,094,590 74,447,680 69,851,276 4,596,404
Budgetary Fund Balance, June 30 (Budgetary Basis)84,576,293$ 82,582,093$ 88,605,849 6,023,756$
Encumbrances 13,347,068
Budgetary Fund Balance, June 30 (GAAP Basis)101,952,917$
See Notes to Required Supplementary Information.111
CITY OF RANCHO CUCAMONGA
Schedule of Changes in Net Pension Liability and Related Ratios
Miscellaneous Plan - Agent Multiple-Employer
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$
82.99%82.62%78.40%77.45%
Covered Payroll 25,819,515$ 25,082,858$ 25,682,090$ 26,459,567$
116.64%125.56%160.52%181.45%
Notes to Schedule:
Benefit Changes:
Changes of Assumptions:
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.
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll
(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 nine years are shown.
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.
In 2018,demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial
Assumptions December 2017.
112
2019 2020 2021 2022 2023
4,869,644$ 4,749,046$ 4,521,001$ 4,313,387$ 4,645,530$
15,134,775 16,072,077 16,720,224 17,333,452 17,859,530
(1,496,029) - (1,248,961) (1,220,230) (2,743,605)
2,212,199 2,512,596 - - 9,509,378
(8,728,016) (9,967,183) (10,819,096) (11,862,110) (12,479,507)
11,992,573 13,366,536 9,173,168 8,564,499 16,791,326
212,888,198 224,880,771 238,247,307 247,420,475 255,984,974
224,880,771$ 238,247,307$ 247,420,475$ 255,984,974$ 272,776,300$
4,622,851$ 5,133,141$ 5,863,963$ 6,250,129$ 6,735,527$
2,032,448 1,976,074 1,971,470 1,921,495 1,836,998
13,809,497 11,584,539 9,140,223 42,762,843 (17,195,068)
(8,728,016) (9,967,183) (10,819,096) (11,862,110) (12,479,507)
(256,923) (126,024) (261,085) (190,892) (143,261)
(407) - - - -
242,458 407 - - -
11,721,908 8,600,954 5,895,475 38,881,465 (21,245,311)
164,876,366 176,598,274 185,199,228 191,094,703 229,976,168
176,598,274$ 185,199,228$ 191,094,703$ 229,976,168$ 208,730,857$
48,282,497$ 53,048,079$ 56,325,772$ 26,008,806$ 64,045,443$
78.53%77.73%77.23%89.84%76.52%
27,268,038$ 27,077,712$ 26,743,856$ 24,764,323$ 24,973,838$
177.07%195.91%210.61%105.03%256.45%
113
CITY OF RANCHO CUCAMONGA
Schedule of Plan Contributions
Miscellaneous Plan - Agent Multiple-Employer
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%
Note to Schedule:
Valuation Date:June 30, 2021
Methods and assumptions used to determine contribution rates:
Discount Rate 6.90%
Inflation
Salary Increases
Post Retiremnet Benefit Increase
Mortality
(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 nine years are shown.
2.30%
Varies by entry age and service
The lesser of contract COLA or 2.30% until Purchasing Power Protection
The mortality table used was developed based on CalPERS-specific data. The
probabilities of mortality are based on the 2021 CalPERS Experience Study for the
period from 2001 to 2019.Pre-retirement and Post-retirement mortality rates
include generational mortality improvement using 80% of Scale MP-2020 published
by the Society of Actuaries. For more details on this table, please refer to the
CalPERS Experience Study and Review of Actuarial Assumptions report from
November 2021 that can be found on the CalPERS website.
114
2019 2020 2021 2022 2023
5,135,066$ 5,862,979$ 6,250,173$ 6,734,618$ 11,399,836$
(5,135,066) (5,862,979) (6,250,173) (6,734,618) (11,399,836)
-$ -$ -$ -$ -$
27,077,712$ 26,743,856 24,764,323 24,973,838 26,841,937
18.96%21.92%25.24%26.97%42.47%
115
CITY OF RANCHO CUCAMONGA
Schedule of Proportionate Share of the Net Pension Liability
Cost Sharing Multiple-Employer Plan - Miscellaneous Rate Plan
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%
Notes to Schedule:
Changes of Assumptions:
(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 nine years are shown.
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.
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.
In 2018,demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial
Assumptions December 2017.
116
2019 2020 2021 2022 2023
0.06897%0.07095%0.07296%0.09528%0.07746%
2,599,301$ 2,841,232$ 3,077,476$ 1,809,262$ 3,624,318$
1,619,191$ 1,593,099$ 1,771,563$ 1,798,563$ 1,851,717$
160.53%178.35%173.72%100.59%195.73%
77.69%77.73%77.71%90.49%78.19%
117
CITY OF RANCHO CUCAMONGA
Schedule of Plan Constributions
Cost Sharing Multiple-Employer Plan - Miscellaneous Rate Plan
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%
Note to Schedule:
Valuation Date:June 30, 2021
Methods and assumptions used to determine contribution rates:
Discount Rate 6.90%
Inflation
Salary Increases
Post Retiremnet Benefit Increase
Mortality
(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 nine years are shown.
The lesser of contract COLA or 2.30% until Purchasing Power Protection
Allowance floor on purchasing power applies, 2.30% thereafter
The mortality table used was developed based on CalPERS-specific data.
The probabilities of mortality are based on the 2021 CalPERS Experience
Study for the period from 2001 to 2019.Pre-retirement and Post-
retirement mortality rates include generational mortality improvement using
80% of Scale MP-2020 published by the Society of Actuaries. For more
details on this table, please refer to the CalPERS Experience Study and
Review of Actuarial Assumptions report from November 2021 that can be
found on the CalPERS website.
2.30%
Varies by entry age and service
118
2019 2020 2021 2022 2023
283,247$ 332,407$ 372,168$ 406,745$ 433,129$
(283,247) (332,407) (372,168) (406,745) (433,129)
-$ -$ -$ -$ -$
1,593,099$ 1,771,563$ 1,798,563$ 1,851,717$ 1,819,838$
17.78%18.76%20.69%21.97%23.80%
119
CITY OF RANCHO CUCAMONGA
Schedule of Proportionate Share of the Net Pension Liability
Cost Sharing Multiple-Employer Plan - Safety Rate Plan
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%
Notes to Schedule:
Changes of Assumptions:
(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 nine years are shown.
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.
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.
In 2018,demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial
Assumptions December 2017.
120
2019 2020 2021 2022 2023
0.59184%0.60633%0.62729%0.55761%0.59487%
34,726,501$ 37,850,274$ 41,792,462$ 19,529,265$ 40,876,767$
11,663,014$ 12,029,495$ 12,348,120$ 13,128,489$ 13,129,347$
297.75%314.65%338.45%148.75%311.34%
73.39%73.37%73.12%86.61%75.53%
121
CITY OF RANCHO CUCAMONGA
Schedule of Plan Contributions
Cost Sharing Multiple-Employer Plan - Safety Rate Plan
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%
Note to Schedule:
Valuation Date:June 30, 2021
Methods and assumptions used to determine contribution rates:
Discount Rate 6.90%
Inflation
Salary Increases
Post Retiremnet Benefit Increase
Mortality
(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 nine years are shown.
2.30%
Varies by entry age and service
The lesser of contract COLA or 2.30% until Purchasing Power Protection
The mortality table used was developed based on CalPERS-specific data.
The probabilities of mortality are based on the 2021 CalPERS Experience
Study for the period from 2001 to 2019.Pre-retirement and Post-retirement
mortality rates include generational mortality improvement using 80% of
Scale MP-2020 published by the Society of Actuaries. For more details on
this table, please refer to the CalPERS Experience Study and Review of
Actuarial Assumptions report from November 2021 that can be found on the
CalPERS website.
122
2019 2020 2021 2022 2023
4,101,079$ 4,727,134$ 10,065,699$ 9,113,770$ 9,243,848$
(4,101,079) (4,727,134) (10,065,699) (9,113,770) (9,243,848)
-$ -$ -$ -$ -$
12,029,495$ 12,348,120$ 13,128,489$ 13,129,347$ 13,063,714$
34.09%38.28%76.67%69.42%70.76%
123
CITY OF RANCHO CUCAMONGA
Schedule of Changes in Net Pension Liability/(Asset) and Related Ratios
PARS Retirement Enhancement Plan
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)$
123.90%117.74%99.22%101.58%
Covered Payroll 24,363,588$ 22,739,613$ 21,593,214$ 19,909,987$
-21.91%-18.69%1.01%-2.37%
Notes to Schedule:
Benefit Changes
Changes of Assumptions:
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.
Plan Fiduciary Net Position as a Percentage of the Total Pension
Liability
Plan Net Pension Liability/(Asset) as a Percentage of Covered
Payroll
(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 nine years are shown.
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.
In 2020, Mortality improvement scale was updated to Scale MP2020.
124
2019 2020 2021 2022 2023
736,116$ 660,456$ 632,103$ 561,042$ 462,828$
1,731,246 1,716,445 1,794,641 1,803,717 1,867,197
- - 149,388 - -
(1,975,546) - (933,120) - (2,701,648)
(683,589) - (283,683) - 1,680,083
(323,105) - - - -
(837,663) (983,660) (1,106,896) (1,167,119) (1,249,979)
(1,352,541) 1,393,241 252,433 1,197,640 58,481
29,791,333 28,438,792 29,832,033 30,084,466 31,282,106
28,438,792$ 29,832,033$ 30,084,466$ 31,282,106$ 31,340,587$
657,424$ 609,239$ 648,386$ 563,099$ 547,799$
1,865,280 1,890,679 1,090,928 7,631,818 (5,309,778)
(837,663) (983,660) (1,106,896) (1,167,119) (1,249,979)
(39,500) (38,432) (57,282) (49,786) (62,204)
1,645,541 1,477,826 575,136 6,978,012 (6,074,162)
30,262,718 31,908,259 33,386,085 33,961,221 40,939,233
31,908,259$ 33,386,085$ 33,961,221$ 40,939,233$ 34,865,071$
(3,469,467)$ (3,554,052)$ (3,876,755)$ (9,657,127)$ (3,524,484)$
112.20%111.91%112.89%130.87%111.25%
18,246,690$ 16,119,382$ 14,750,069$ 13,301,202$ 12,451,110$
-19.01%-22.05%-26.28%-72.60%-28.31%
125
CITY OF RANCHO CUCAMONGA
Schedule of Plan Contributions
PARS Retirement Enhancement Plan
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)-$ -$ 1,523,000$ -$
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%
Note to Schedule:
Valuation Date:June 30, 2022
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal in accordance with the requirements of GASB 68
Discount rate 5.50%
Inflation 2.50%
Asset valuation method Market value of assets
Mortality
(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.
(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 nine years are shown.
Based on assumptions for Public Agency Miscellaneous Employees published in the
2021 CalPERS Experience Study. These tables include enerational mortality
improvement using 80% of scale MP-2020.
126
2019 2020 2021 2022 2023
628,911$ 626,595$ 563,099$ 547,799$ 506,916$
(628,911) (626,595) (563,099) (547,799) (506,916)
-$ -$ -$ -$ -$
16,119,382$ 14,750,069$ 13,301,202$ 12,451,110 11,520,818
3.90%4.25%4.23%4.40%4.40%
127
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
Total OPEB Liability
Service cost 400,000$ 412,316$ 424,685$
Interest on the total OPEB liability 1,516,000 1,562,020 1,606,264
Actual and expected experience difference - - (3,896,602)
Changes in assumptions - - (239,453)
Benefit payments (1,046,000) (1,143,902) (1,216,647)
Net change in total OPEB liability 870,000 830,434 (3,321,753)
Total OPEB liability - beginning 27,688,000 28,558,000 29,388,434
Total OPEB liability - ending (a)28,558,000 29,388,434 26,066,681
Plan Fiduciary Net Position
Contribution - employer 281,000 998,969 469,195
Net investment income 1,429,000 1,339,488 2,114,944
Benefit payments (1,046,000) (1,143,902) (1,216,647)
Administrative expense (14,000) (52,080) (8,528)
Net change in plan fiduciary net position 650,000 1,142,475 1,358,964
Plan fiduciary net position - beginning 27,617,000 28,267,000 29,409,475
Plan fiduciary net position - ending (b)28,267,000$ 29,409,475$ 30,768,439$
Net OPEB Liability/(Asset) - ending (a) - (b)291,000$ (21,041)$ (4,701,758)$
Plan fiduciary net position as a percentage of the total OPEB liability 98.98%100.07%118.04%
Covered payroll 15,842,421$ 16,635,534$ 16,440,813$
Net OPEB asset as a percentage of covered payroll 1.84%-0.13%-28.60%
Notes to Schedule: None
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
Decreased medical trend rate for Kaiser Senior Advantage.
New rates from CalPERS Experience Study.
Updated assumption for medical eligible implied subsidy.
Mortality improvement scale was updated to Scale MP-2021.
Changes in assumptions:
(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.
Inflation assumption dropped from 2.75% to 2.50%. which dropped the discount rate, medical trend, and aggregate payroll increase by
0.25%.
128
2021 2022 2023
362,464$ 351,997$ 315,155$
1,418,049 1,421,351 1,335,833
- (107,488) -
(415,987) (729,439) -
(1,292,883) (1,295,174) (1,300,571)
71,643 (358,753) 350,417
26,066,681 26,138,324 25,779,571
26,138,324 25,779,571 26,129,988
454,699 32,589 15,729
1,949,800 4,356,510 (3,733,741)
(1,292,883) (1,295,174) (1,300,571)
(17,988) (13,863) (11,634)
1,093,628 3,080,062 (5,030,217)
30,768,439 31,862,067 34,942,129
31,862,067$ 34,942,129$ 29,911,912$
(5,723,743)$ (9,162,558)$ (3,781,924)$
121.90%135.54%114.47%
17,940,240$ 18,018,339$ 20,503,652$
-31.90%-50.85%-18.45%
129
CITY OF RANCHO CUCAMONGA
Schedule of Contributions - OPEB
As of June 30, For the Last Ten Fiscal Years (1)
2018 2019 2020
998,969$ 469,195$ 454,699$
(998,969) (469,195) (454,699)
-$ -$ -$
16,635,534$ 16,440,813$ 17,940,240$
6.01%2.85%2.53%
Methods and assumptions used to determine contributions:
Valuation Date June 30, 2022
Actuarial Cost Method
Amortization Valuation Method/Period
Asset Valuation Method
Discount Rate 5.25%
General Inflation 2.50%
Payroll Growth 2.75% per annum, in aggregate
Mortality, Disability, Termination,
Retirement
Medical Trend
Other Assumptions
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 2076PEMHCA 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
CalPERS 2000-2019 Experience Study;
Mortality Improvement - Mortality projected fully generational with Scale MP-2021
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions
Contribution Deficiency (Excess)
Covered payroll
Contributions as a percentage of covered payroll
Entry Age Nomal, Level percent of pay
Investment gains/losses spread over 5-year rolling period
Level percent of pay over a 15-year fixed period for 2022-23
(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.
130
2021 2022 2023
32,589$ 15,729$ 3,741$
(32,589) (15,729) (3,741)
-$ -$ -$
18,018,339$ 20,503,652$ 20,132,489$
0.18%0.08%0.02%
CalPERS 2000-2019 Experience Study;
Mortality Improvement - Mortality projected fully generational with Scale MP-2021
131
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132
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.
Lighting District Fund – Established to account for the costs associated with providing street lighting
throughout the City. Revenues are provided by special assessments levied against the benefiting
property owners.
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.
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.
133
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.
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 1B Fund – Established to account for the receipts and disbursements of Proposition 1B and
Proposition 1B 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.
134
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.
Federal Grants Fund – Established to account 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.
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.
Community 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.
Industrial Area Traffic Fund – Established to account for payments collected from developers as identified
in Development Agreements for construction of traffic related improvements within the Industrial Area of
the City.
Opioid Settlement Fund - Established to account for funds received from the State of California as part of
the multiple lawsuits against manufacturers, distributors, and other entities responsible for aiding the
opioid epidemic. Funds received from opioid settlements will be used for opioid remediation activities.
Capital Projects Fund
Capital Projects Fund - Established to account for major capital improvement projects not accounted for
in other funds.
135
CITY OF RANCHO CUCAMONGA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments 14,979,001$ -$ 581,003$ 4,551,022$
Receivables (net of allowance for uncollectible):
Accounts 804,018 - - 195,977
Taxes 386,554 - - 23,181
Accrued interest 75,816 - 2,795 15,171
Other loans - - - -
Grants - - - -
Leases - - - -
Prepaid costs - - - -
Due from other funds - - - -
Total assets 16,245,389 - 583,798 4,785,351
LIABILITIES
Accounts payable 933,934$ -$ -$ 254,686$
Accrued liabilities 38,823 - - 4,090
Unearned revenues - - - 6,335
Deposits payable - - - -
Due to other governments - - - -
Due to other funds - - - 91,836
Advances from other funds - - - 8,275,172
Total liabilities 972,757 - - 8,632,119
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - 186,086
Deferred lease inflows - - - -
Total deferred inflows of resources - - - 186,086
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid costs - - - -
Restricted
Community development projects - - - -
Public safety - police - - - -
Parks and recreation - - - -
Engineering and public works - - - -
Capital improvement projects 15,272,632 - 583,798 -
Street lighting - - - -
Underground utilities - - - -
Landscape maintenance - - - -
Library services - - - -
Unassigned - - - (4,032,854)
Total fund balances (deficits)15,272,632 - 583,798 (4,032,854)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)16,245,389$ -$ 583,798$ 4,785,351$
Gas Tax Recreation Beautification
Lighting
Districts
Special Revenue Funds
136
CITY OF RANCHO CUCAMONGA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Other loans
Grants
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Deferred lease inflows
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid costs
Restricted
Community development projects
Public safety - police
Parks and recreation
Engineering and public works
Capital improvement projects
Street lighting
Underground utilities
Landscape maintenance
Library services
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
22,227,313$ -$ -$ 843,169$
40,255 - - -
129,867 - - -
100,462 - - 4,723
- - 1,347,570 -
- 11,555 536,630 -
1,849,233 - - -
900 - - -
- - - -
24,348,030 11,555 1,884,200 847,892
1,035,535$ 1,027$ 119,302$ 384$
61,313 - 3,111 6,282
- - - -
- - - -
- - 523,329 -
- 10,529 434,968 -
- - - -
1,096,848 11,556 1,080,710 6,666
- 11,555 239,841 -
1,760,299 - - -
1,760,299 11,555 239,841 -
900 - - -
- - 563,649 841,226
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
21,489,983 - - -
- - - -
- (11,556) - -
21,490,883 (11,556) 563,649 841,226
24,348,030$ 11,555$ 1,884,200$ 847,892$
Landscape
Maintenance
Districts
Pedestrian
Grant
Community
Development
Block Grant
Assessment
Administration
Special Revenue Funds
137
CITY OF RANCHO CUCAMONGA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Other loans
Grants
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Deferred lease inflows
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid costs
Restricted
Community development projects
Public safety - police
Parks and recreation
Engineering and public works
Capital improvement projects
Street lighting
Underground utilities
Landscape maintenance
Library services
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
-$ 608,888$ 8,531,716$ 27,194,970$
- 58,190 11,400 5,237
- - 1,137,586 50,953
- 2,506 36,703 74,159
- - - -
- - - -
- - - -
- - - 5,700
- - - -
- 669,584 9,717,405 27,331,019
-$ 2,068$ 266,904$ 963,889$
- - 10,937 77,247
- - - 4,517,624
- - - 15
- - - -
- - - -
- - - -
- 2,068 277,841 5,558,775
- - 392,693 -
- - - -
- - 392,693 -
- - - 5,700
- 667,516 - -
- - - -
- - - -
- - 9,046,871 -
- - - 13,627,389
- - - -
- - - -
- - - -
- - - 8,139,155
- - - -
- 667,516 9,046,871 21,772,244
-$ 669,584$ 9,717,405$ 27,331,019$
Measure I
Library
Services
Special Revenue Funds
SB 140
Air Quality
Improvement
138
CITY OF RANCHO CUCAMONGA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Other loans
Grants
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Deferred lease inflows
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid costs
Restricted
Community development projects
Public safety - police
Parks and recreation
Engineering and public works
Capital improvement projects
Street lighting
Underground utilities
Landscape maintenance
Library services
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
1,591,958$ 27,641$ 357,780$ -$
- - - -
- - - -
405 96 1,214 -
- - - -
80,401 - - -
- - - -
- - - -
- - - -
1,672,764 27,737 358,994 -
82,522$ 424$ 184$ -$
- 1,045 - -
19,367 - - -
- - - -
- - - -
72,030 - - -
- - - -
173,919 1,469 184 -
45,381 - - -
- - - -
45,381 - - -
- - - -
- - - -
1,453,464 - - -
- - - -
- 26,268 - -
- - - -
- - - -
- - - -
- - - -
- - 358,810 -
- - - -
1,453,464 26,268 358,810 -
1,672,764$ 27,737$ 358,994$ -$
Public Safety
Grants
Used Oil
Recycling
Special Revenue Funds
Library
Services
Grants
AB 2928
Traffic
Congestion
Relief
139
CITY OF RANCHO CUCAMONGA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Other loans
Grants
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Deferred lease inflows
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid costs
Restricted
Community development projects
Public safety - police
Parks and recreation
Engineering and public works
Capital improvement projects
Street lighting
Underground utilities
Landscape maintenance
Library services
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
44,601$ -$ 12,702,650$ 31,885,817$
- - - 16,806,637
- - - -
- - 55,576 133,128
- - - -
- - - -
- - - -
2,932 - - -
- - - -
47,533 - 12,758,226 48,825,582
1,482$ -$ 835$ 489,240$
259 - - 208
- - - -
- - - 400,000
- - - -
- - - -
- - - -
1,741 - 835 889,448
- - - -
- - - -
- - - -
2,932 - - -
42,860 - - -
- - - -
- - - -
- - - -
- - - -
- - - 47,936,134
- - 12,757,391 -
- - - -
- - - -
- - - -
45,792 - 12,757,391 47,936,134
47,533$ -$ 12,758,226$ 48,825,582$
Special Revenue Funds
Citywide
Infrastructure
Improvement
Litter
Reduction
Grant
SAFETEA-LU
Grant
Underground
Utilities
140
CITY OF RANCHO CUCAMONGA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Other loans
Grants
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Deferred lease inflows
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid costs
Restricted
Community development projects
Public safety - police
Parks and recreation
Engineering and public works
Capital improvement projects
Street lighting
Underground utilities
Landscape maintenance
Library services
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
-$ 4,787,363$ -$ 591,367$
- 28,131 1,105,216 -
- 436,053 - -
- 21,359 - 3,027
- - - -
- - 542,028 -
- - - -
- 1,450 - -
- - - -
- 5,274,356 1,647,244 594,394
-$ 4,105$ 67,332$ -$
- 23,752 - -
- - - -
- - - -
- - - -
- - 4,774,602 -
- - - -
- 27,857 4,841,934 -
- - 542,028 -
- - - -
- - 542,028 -
- 1,450 - -
- - - -
- - - -
- - - 594,394
- 5,245,049 - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - (3,736,718) -
- 5,246,499 (3,736,718) 594,394
-$ 5,274,356$ 1,647,244$ 594,394$
Special Revenue Funds
Proposition
1B
Integrated
Waste
Management SB1 - TCEP
Public Art
Trust Fund
141
CITY OF RANCHO CUCAMONGA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Other loans
Grants
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Deferred lease inflows
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid costs
Restricted
Community development projects
Public safety - police
Parks and recreation
Engineering and public works
Capital improvement projects
Street lighting
Underground utilities
Landscape maintenance
Library services
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
100,072$ -$ 84,558$ 3,215,917$
86,345 2,464 - 5,262
- - 383 10,808
- 231 347 17,389
- - - -
3,054,545 62,169 - -
- - - 1,466,201
- - - -
- - - -
3,240,962 64,864 85,288 4,715,577
626,537$ -$ -$ 142,284$
- - 487 4,871
2,126,407 - - -
- - - -
- - - -
- 61,762 - -
- - - -
2,752,944 61,762 487 147,155
2,554,545 62,169 - -
- - - 1,410,989
2,554,545 62,169 - 1,410,989
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 84,801 3,157,433
- - - -
(2,066,527) (59,067) - -
(2,066,527) (59,067) 84,801 3,157,433
3,240,962$ 64,864$ 85,288$ 4,715,577$
Special Revenue Funds
PD 85
Maintenance
State Grants
Fund
Federal
Grants Fund
AD 91-2
Redemption-
Day Canyon
142
CITY OF RANCHO CUCAMONGA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Other loans
Grants
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Deferred lease inflows
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid costs
Restricted
Community development projects
Public safety - police
Parks and recreation
Engineering and public works
Capital improvement projects
Street lighting
Underground utilities
Landscape maintenance
Library services
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
637,854$ 5,211$ 353,427$ -$
- - - -
3,902 - 1,662 -
2,101 - 1,272 -
- - - -
- - - -
- - - -
- - - -
- - - 97,036
643,857 5,211 356,361 97,036
21,158$ -$ 895$ 2,818$
4,041 - - -
- - - -
- - 50,000 -
- - - -
- - - 280,896
- - - -
25,199 - 50,895 283,714
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
618,658 5,211 305,466 -
- - - -
- - - (186,678)
618,658 5,211 305,466 (186,678)
643,857$ 5,211$ 356,361$ 97,036$
Special Revenue Funds
CFD 2000-03
Park
Maintenance
CFD 2017-01
No. Etiwanda
CFD 2018-01
Empire Lakes
Enhanced
Infrastructure
Financing
District
143
THIS PAGE INTENTIONALLY LEFT BLANK
144
CITY OF RANCHO CUCAMONGA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Taxes
Accrued interest
Other loans
Grants
Leases
Prepaid costs
Due from other funds
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Deferred lease inflows
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid costs
Restricted
Community development projects
Public safety - police
Parks and recreation
Engineering and public works
Capital improvement projects
Street lighting
Underground utilities
Landscape maintenance
Library services
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total
Nonmajor
Funds
1,787,330$ 151,290$ 709,765$ 138,551,683$
- - - 19,149,132
- - - 2,180,949
19 - 17,137 565,636
- - - 1,347,570
- - - 4,287,328
- - - 3,315,434
- - - 10,982
- - - 97,036
1,787,349 151,290 726,902 169,505,750
-$ -$ -$ 5,017,545$
- - - 236,466
- 156,754 - 6,826,487
- - - 450,015
- - - 523,329
- - - 5,726,623
- - - 8,275,172
- 156,754 - 27,055,637
- - - 4,034,298
- - - 3,171,288
- - - 7,205,586
- - - 10,982
- - - 2,115,251
- - - 1,453,464
- - - 594,394
1,787,349 - - 16,105,537
- - 726,902 30,210,721
- - - 47,936,134
- - - 12,757,391
- - - 25,661,552
- - - 8,497,965
- (5,464) - (10,098,864)
1,787,349 (5,464) 726,902 135,244,527
1,787,349$ 151,290$ 726,902$ 169,505,750$
Capital Projects
Funds Special Revenue Funds
Industrial
Area Traffic
Fund
Opioid
Settlement
Fund
Capital Projects
Fund
145
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes -$ -$ -$ 2,138,729$
Licenses and permits - - - -
Intergovernmental 8,298,513 - - -
Charges for services - - - -
Use of money and property 305,606 529 8,201 39,483
Contributions - - - -
Developer participation - - - -
Miscellaneous 119,385 - - 48,950
Total revenues 8,723,504 529 8,201 2,227,162
EXPENDITURES
Current:
General government - - - 2,209,547
Public safety - police - - - -
Public safety - fire protection - - - -
Community development - - - -
Community services - - - -
Enegineering and public works 2,333,024 - 410 -
Capital outlay 7,451,507 - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - 1,450
Total expenditures 9,784,531 - 410 2,210,997
Excess (deficiency) of revenues
over (under) expenditures (1,061,027) 529 7,791 16,165
OTHER FINANCING SOURCES (USES)
Transfers in - 5,267 - 170,800
Transfers out - (49) - -
Subscriptions issued - - - -
Total other financing sources (uses)- 5,218 - 170,800
Net change in fund balances (1,061,027) 5,747 7,791 186,965
Fund balances (deficit)-beginning 16,333,659 (5,747) 576,007 (4,219,819)
Fund balances (deficit)-ending 15,272,632$ -$ 583,798$ (4,032,854)$
Gas Tax Recreation Beautification
Lighting
Districts
Special Revenue Funds
146
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Enegineering and public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions issued
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
11,604,789$ -$ -$ -$
125,848 - - -
- - 897,224 -
40,295 - - -
460,245 - 11,810 16,162
- - - -
- - - -
15,300 - 157,598 700,610
12,246,477 - 1,066,632 716,772
- - - 744,799
- - - -
- - - -
10,993,645 - 1,972,577 -
- - - -
- - - -
1,435,352 11,556 - -
- - - -
- - - -
12,428,997 11,556 1,972,577 744,799
(182,520) (11,556) (905,945) (28,027)
382,471 9,237 126,680 -
- - - -
- - - -
382,471 9,237 126,680 -
199,951 (2,319) (779,265) (28,027)
21,290,932 (9,237) 1,342,914 869,253
21,490,883$ (11,556)$ 563,649$ 841,226$
Landscape
Maintenance
Districts
Pedestrian
Grant
Community
Development
Block Grant
Assessment
Administration
Special Revenue Funds
147
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Enegineering and public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions issued
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$ -$ -$ 5,699,184$
- - - -
- 250,317 4,634,809 1,054,328
- - - 70,377
1,586 2,409 14,341 (93,757)
- - - 999,599
- - - -
- 1,678 11,400 51,808
1,586 254,404 4,660,550 7,781,539
- 13,371 - -
- - - -
- - - -
- - - -
- - - 4,189,097
- - 1,450,169 -
- 112,369 816,118 3,790,154
- - - 52,929
- - - 316
- 125,740 2,266,287 8,032,496
1,586 128,664 2,394,263 (250,957)
- 180 - 9,238,332
(36,690) - - -
- - - 106,910
(36,690) 180 - 9,345,242
(35,104) 128,844 2,394,263 9,094,285
35,104 538,672 6,652,608 12,677,959
-$ 667,516$ 9,046,871$ 21,772,244$
Measure I
Library
Services SB 140
Air Quality
Improvement
Special Revenue Funds
148
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Enegineering and public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions issued
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ -$ -$ -$
- - - -
528,454 26,450 26,443 -
- - - -
(1,114) 214 3,969 12,691
- - - -
- - - -
- - - -
527,340 26,664 30,412 12,691
- - - -
236,881 - - -
80,435 - - -
- - - -
- - 19,565 -
- 24,604 - -
29,560 - - -
- - - -
- - - -
346,876 24,604 19,565 -
180,464 2,060 10,847 12,691
- - - -
(33) (365) - (294,026)
- - - -
(33) (365) - (294,026)
180,431 1,695 10,847 (281,335)
1,273,033 24,573 347,963 281,335
1,453,464$ 26,268$ 358,810$ -$
Library
Services
Grants
AB 2928
Traffic
Congestion
Relief
Public Safety
Grants
Used Oil
Recycling
Special Revenue Funds
149
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Enegineering and public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions issued
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$ -$ -$ -$
- - - -
43,651 - - 16,423,622
- - - -
880 23,523 109,160 99,741
- - - -
- - 1,400,000 -
- - - 206,165
44,531 23,523 1,509,160 16,729,528
- - - -
- - - -
- - - -
- - - -
- - - -
54,045 - 5,100 171,393
- - - 565,823
- - - -
- - - -
54,045 - 5,100 737,216
(9,514) 23,523 1,504,060 15,992,312
- - - 6,911,161
- (491,818) - (9,237)
- - - -
- (491,818) - 6,901,924
(9,514) (468,295) 1,504,060 22,894,236
55,306 468,295 11,253,331 25,041,898
45,792$ -$ 12,757,391$ 47,936,134$
Citywide
Infrastructure
Improvement
Litter
Reduction
Grant
SAFETEA-LU
Grant
Underground
Utilities
Special Revenue Funds
150
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Enegineering and public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions issued
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ 1,874,939$ -$ -$
- 29,007 - -
- - 5,526,094 -
- - - -
13,419 43,962 - 8,000
- - - -
- - - 62,495
- 148,766 133,651 -
13,419 2,096,674 5,659,745 70,495
- - - -
- - - -
- - - -
- - - 35,068
- - - -
110 1,308,108 2,410 -
- - 9,398,514 -
- - - -
- - - -
110 1,308,108 9,400,924 35,068
13,309 788,566 (3,741,179) 35,427
- 2,942 4,461 -
(304,656) (218,390) - -
- - - -
(304,656) (215,448) 4,461 -
(291,347) 573,118 (3,736,718) 35,427
291,347 4,673,381 - 558,967
-$ 5,246,499$ (3,736,718)$ 594,394$
SB1 - TCEP
Public Art
Trust Fund
Proposition
1B
Integrated
Waste
Management
Special Revenue Funds
151
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Enegineering and public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions issued
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$ -$ 26,553$ 1,166,047$
- - - -
978,038 962,162 - -
- - - 31,302
4,054 637 905 218,447
- - - -
- - - -
- - - -
982,092 962,799 27,458 1,415,796
363,106 23,465 23,472 -
- - - -
- - - -
- - - -
- - - -
- - - 1,106,739
2,363,313 - - 637,332
- - - -
- - - -
2,726,419 23,465 23,472 1,744,071
(1,744,327) 939,334 3,986 (328,275)
- - - 153,467
(314,092) (1,000,866) - -
- - - -
(314,092) (1,000,866) - 153,467
(2,058,419) (61,532) 3,986 (174,808)
(8,108) 2,465 80,815 3,332,241
(2,066,527)$ (59,067)$ 84,801$ 3,157,433$
PD 85
Maintenance
State Grants
Fund
Federal
Grants Fund
AD 91-2
Redemption-
Day Canyon
Special Revenue Funds
152
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Enegineering and public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions issued
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
557,853$ 3,016$ 257,007$ 97,037$
- - - -
- - - -
60 - - -
2,234 (176) (2,649) -
- - - -
- - - -
- - - -
560,147 2,840 254,358 97,037
429,873 1,220 22,133 41,917
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
429,873 1,220 22,133 41,917
130,274 1,620 232,225 55,120
- - - -
- - (116,940) -
- - - -
- - (116,940) -
130,274 1,620 115,285 55,120
488,384 3,591 190,181 (241,798)
618,658$ 5,211$ 305,466$ (186,678)$
CFD 2000-03
Park
Maintenance
CFD 2017-01
No. Etiwanda
CFD 2018-01
Empire Lakes
Enhanced
Infrastructure
Financing
District
Special Revenue Funds
153
CITY OF RANCHO CUCAMONGA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Enegineering and public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Subscriptions issued
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total
Nonmajor
Funds
-$ -$ -$ 23,425,154$
- - - 154,855
- - - 39,650,105
- - - 142,034
(73,278) (5,464) 394,707 1,620,477
- - - 999,599
1,860,627 - - 3,323,122
- - - 1,595,311
1,787,349 (5,464) 394,707 70,910,657
- - 1,240 3,874,143
- - - 236,881
- - - 80,435
- - 945,884 13,947,174
- - - 4,208,662
- - - 6,456,112
- - - 26,611,598
- - - 52,929
- - - 1,766
- - 947,124 55,469,700
1,787,349 (5,464) (552,417) 15,440,957
- - 41,128 17,046,126
- - (5,895,221) (8,682,383)
- - - 106,910
- - (5,854,093) 8,470,653
1,787,349 (5,464) (6,406,510) 23,911,610
- - 7,133,412 111,332,917
1,787,349$ (5,464)$ 726,902$ 135,244,527$
Capital
Projects Fund
Opioid
Settlement
Fund
Industrial
Area Traffic
Fund
Special Revenue Funds
Capital
Projects Funds
154
CITY OF RANCHO CUCAMONGA
Gas Tax
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 16,333,659$ 16,333,659$ 16,333,659$ -$
Resources (Inflows):
Intergovernmental 9,086,410 8,246,970 8,298,513 51,543
Use of money and property 184,930 278,330 305,606 27,276
Miscellaneous - - 119,385 119,385
Amounts Available for Appropriations 25,604,999 24,858,959 25,057,163 198,204
Charges to Appropriation (Outflow):
Engineering and public works 2,911,030 2,431,460 2,380,507 50,953
Capital outlay 6,450,000 11,415,610 10,439,727 975,883
Total Charges to Appropriations 9,361,030 13,847,070 12,820,234 1,026,836
Budgetary Fund Balance, June 30 (Budgetary Basis)16,243,969$ 11,011,889$ 12,236,929 1,225,040$
Encumbrances 3,035,703
Budgetary Fund Balance, June 30 (GAAP Basis)15,272,632$
155
CITY OF RANCHO CUCAMONGA
Recreation
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (5,747)$ (5,747)$ (5,747)$ -$
Resources (Inflows):
Use of money and property 10 - 529 529
Transfers in - 5,270 5,267 (3)
Amounts Available for Appropriations (5,737) (477) 49 526
Charges to Appropriation (Outflow):
Transfers out - 13,610 49 13,561
Total Charges to Appropriations - 13,610 49 13,561
Budgetary Fund Balance, June 30 (Budgetary Basis)(5,737)$ (14,087)$ - 14,087$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)-$
156
CITY OF RANCHO CUCAMONGA
Beautification
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 576,007$ 576,007$ 576,007$ -$
Resources (Inflows):
Use of money and property 5,910 9,980 8,201 (1,779)
Amounts Available for Appropriations 581,917 585,987 584,208 (1,779)
Charges to Appropriation (Outflow):
Engineering and public works 400 410 410 -
Total Charges to Appropriations 400 410 410 -
Budgetary Fund Balance, June 30 (Budgetary Basis)581,517$ 585,577$ 583,798 (1,779)$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)583,798$
157
CITY OF RANCHO CUCAMONGA
Lighting Districts
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (4,219,819)$ (4,219,819)$ (4,219,819)$ -$
Resources (Inflows):
Taxes 2,162,730 2,162,730 2,138,729 (24,001)
Use of money and property 34,040 50,870 39,483 (11,387)
Miscellaneous - 40,060 48,950 8,890
Transfers in 187,230 218,650 170,800 (47,850)
Amounts Available for Appropriations (1,835,819) (1,747,509) (1,821,857) (74,348)
Charges to Appropriation (Outflow):
General government 2,244,140 2,349,260 2,210,197 139,063
Debt service:
Principal retirement 9,860 9,860 - 9,860
Interest and fiscal charges 1,460 1,460 1,450 10
Total Charges to Appropriations 2,255,460 2,360,580 2,211,647 148,933
Budgetary Fund Balance, June 30 (Budgetary Basis)(4,091,279)$ (4,108,089)$ (4,033,504) 74,585$
Encumbrances 650
Budgetary Fund Balance, June 30 (GAAP Basis)(4,032,854)$
158
CITY OF RANCHO CUCAMONGA
Landscape Maintenance Districts
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 21,290,932$ 21,290,932$ 21,290,932$ -$
Resources (Inflows):
Taxes 11,645,970 11,663,190 11,604,789 (58,401)
Licenses and permits 60,000 80,000 125,848 45,848
Charges for services 26,130 37,670 40,295 2,625
Use of money and property 279,620 433,210 460,245 27,035
Miscellaneous 300 300 15,300 15,000
Transfers in 472,020 493,740 382,471 (111,269)
Amounts Available for Appropriations 33,774,972 33,999,042 33,919,880 (79,162)
Charges to Appropriation (Outflow):
Community development 12,930,780 13,247,490 11,371,040 1,876,450
Capital outlay 3,430,270 2,402,150 1,765,739 636,411
Total Charges to Appropriations 16,361,050 15,649,640 13,136,779 2,512,861
Budgetary Fund Balance, June 30 (Budgetary Basis)17,413,922$ 18,349,402$ 20,783,101 2,433,699$
Encumbrances 707,782
Budgetary Fund Balance, June 30 (GAAP Basis)21,490,883$
159
CITY OF RANCHO CUCAMONGA
Pedestrian Grant
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
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 403,000 72,000 - (72,000)
Transfers in - 9,240 9,237 (3)
Amounts Available for Appropriations 393,763 72,003 - (72,003)
Charges to Appropriation (Outflow):
Capital outlay 403,000 72,000 11,556 60,444 Other uses 5 - - - -
Total Charges to Appropriations 403,000 72,000 11,556 60,444
Budgetary Fund Balance, June 30 (Budgetary Basis)(9,237)$ 3$ (11,556) (11,559)$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)(11,556)$
160
CITY OF RANCHO CUCAMONGA
Community Development Block Grant
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,342,914$ 1,342,914$ 1,342,914$ -$
Resources (Inflows):
Intergovernmental 982,350 692,350 897,224 204,874
Use of money and property - - 11,810 11,810
Miscellaneous 150,000 150,000 157,598 7,598
Transfers in - 126,680 126,680 -
Amounts Available for Appropriations 2,475,264 2,311,944 2,536,226 224,282
Charges to Appropriation (Outflow):
Community development 1,132,350 2,136,170 1,994,317 141,853
Total Charges to Appropriations 1,132,350 2,136,170 1,994,317 141,853
Budgetary Fund Balance, June 30 (Budgetary Basis)1,342,914$ 175,774$ 541,909 366,135$
Encumbrances 21,740
Budgetary Fund Balance, June 30 (GAAP Basis)563,649$
161
CITY OF RANCHO CUCAMONGA
Assessment Administration
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 869,253$ 869,253$ 869,253$ -$
Resources (Inflows):
Use of money and property 6,180 17,590 16,162 (1,428)
Miscellaneous 698,370 700,610 700,610 -
Amounts Available for Appropriations 1,573,803 1,587,453 1,586,025 (1,428)
Charges to Appropriation (Outflow):
General government 792,950 823,480 744,799 78,681
Total Charges to Appropriations 792,950 823,480 744,799 78,681
Budgetary Fund Balance, June 30 (Budgetary Basis)780,853$ 763,973$ 841,226 77,253$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)841,226$
162
CITY OF RANCHO CUCAMONGA
SB 140
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 35,104$ 35,104$ 35,104$ -$
Resources (Inflows):
Use of money and property - - 1,586 1,586
Amounts Available for Appropriations 35,104 35,104 36,690 1,586
Charges to Appropriation (Outflow):
Transfers out - 36,700 36,690 10
Total Charges to Appropriations - 36,700 36,690 10
Budgetary Fund Balance, June 30 (Budgetary Basis)35,104$ (1,596)$ - 1,596$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)-$
163
CITY OF RANCHO CUCAMONGA
Air Quality Improvement
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 538,672$ 538,672$ 538,672$ -$
Resources (Inflows):
Intergovernmental 231,560 252,330 250,317 (2,013)
Use of money and property 5,200 8,420 2,409 (6,011)
Miscellaneous - 1,680 1,678 (2)
Transfers in - 180 180 -
Amounts Available for Appropriations 775,432 801,282 793,256 (8,026)
Charges to Appropriation (Outflow):
General government 15,120 18,770 15,011 3,759
Capital outlay 297,000 170,380 153,428 16,952
Total Charges to Appropriations 312,120 189,150 168,439 20,711
Budgetary Fund Balance, June 30 (Budgetary Basis)463,312$ 612,132$ 624,817 12,685$
Encumbrances 42,699
Budgetary Fund Balance, June 30 (GAAP Basis)667,516$
164
CITY OF RANCHO CUCAMONGA
Measure I
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 6,652,608$ 6,652,608$ 6,652,608$ -$
Resources (Inflows):
Intergovernmental 3,710,670 4,493,200 4,634,809 141,609
Use of money and property 47,490 122,360 14,341 (108,019)
Miscellaneous - - 11,400 11,400
Amounts Available for Appropriations 10,410,768 11,268,168 11,313,158 44,990
Charges to Appropriation (Outflow):
Engineering and public works 1,685,930 1,731,740 1,513,549 218,191
Capital outlay 2,250,000 2,666,260 2,283,421 382,839
Total Charges to Appropriations 3,935,930 4,398,000 3,796,970 601,030
Budgetary Fund Balance, June 30 (Budgetary Basis)6,474,838$ 6,870,168$ 7,516,188 646,020$
Encumbrances 1,530,683
Budgetary Fund Balance, June 30 (GAAP Basis)9,046,871$
165
CITY OF RANCHO CUCAMONGA
Library Services
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 12,677,959$ 12,677,959$ 12,677,959$ -$
Resources (Inflows):
Taxes 5,709,600 5,757,960 5,699,184 (58,776)
Intergovernmental 23,000 9,312,240 1,054,328 (8,257,912)
Charges for services 133,050 67,360 70,377 3,017
Use of money and property 79,540 236,110 (93,757) (329,867)
Contributions 975,000 998,000 999,599 1,599
Miscellaneous 60,000 68,000 51,808 (16,192)
Transfers in - 5,038,340 9,238,332 4,199,992
Subscriptions issued - - 106,910 106,910
Amounts Available for Appropriations 19,658,149 34,155,969 29,804,740 (4,351,229)
Charges to Appropriation (Outflow):
Community services 5,964,800 5,326,970 4,297,556 1,029,414
Capital outlay 4,088,650 7,744,990 6,596,500 1,148,490
Debt service:
Principal retirement - - 52,929 (52,929)
Interest and fiscal charges - - 316 (316)
Total Charges to Appropriations 10,053,450 13,071,960 10,947,301 2,124,659
Budgetary Fund Balance, June 30 (Budgetary Basis)9,604,699$ 21,084,009$ 18,857,439 (2,226,570)$
Encumbrances 2,914,805
Budgetary Fund Balance, June 30 (GAAP Basis)21,772,244$
166
CITY OF RANCHO CUCAMONGA
Public Safety Grants
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,273,033$ 1,273,033$ 1,273,033$ -$
Resources (Inflows):
Intergovernmental 500,570 637,500 528,454 (109,046)
Use of money and property 760 1,490 (1,114) (2,604)
Amounts Available for Appropriations 1,774,363 1,912,023 1,800,373 (111,650)
Charges to Appropriation (Outflow):
Public safety - police 313,890 354,590 236,881 117,709
Public safety - fire protection 28,020 66,350 80,435 (14,085)
Capital outlay 37,300 43,100 42,938 162
Transfers out - 50 33 17
Total Charges to Appropriations 379,210 464,090 360,287 103,803
Budgetary Fund Balance, June 30 (Budgetary Basis)1,395,153$ 1,447,933$ 1,440,086 (7,847)$
Encumbrances 13,378
Budgetary Fund Balance, June 30 (GAAP Basis)1,453,464$
167
CITY OF RANCHO CUCAMONGA
Used Oil Recycling
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 24,573$ 24,573$ 24,573$ -$
Resources (Inflows):
Intergovernmental 23,330 26,450 26,450 -
Use of money and property 160 310 214 (96) Other financing sources 5 - - - -
Amounts Available for Appropriations 48,063 51,333 51,237 (96)
Charges to Appropriation (Outflow):
Engineering and public works 26,450 26,840 24,604 2,236
Transfers out - - 365 (365) Other uses 5 - - - -
Total Charges to Appropriations 26,450 26,840 24,969 1,871
Budgetary Fund Balance, June 30 (Budgetary Basis)21,613$ 24,493$ 26,268 1,775$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)26,268$
168
CITY OF RANCHO CUCAMONGA
Library Services Grants
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 347,963$ 347,963$ 347,963$ -$
Resources (Inflows):
Intergovernmental 20,000 26,450 26,443 (7)
Use of money and property 2,570 4,370 3,969 (401) Other financing sources 5 - - - -
Amounts Available for Appropriations 370,533 378,783 378,375 (408)
Charges to Appropriation (Outflow):
Community services 29,310 27,950 19,565 8,385
Total Charges to Appropriations 29,310 27,950 19,565 8,385
Budgetary Fund Balance, June 30 (Budgetary Basis)341,223$ 350,833$ 358,810 7,977$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)358,810$
169
CITY OF RANCHO CUCAMONGA
Litter Reduction Grant
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 55,306$ 55,306$ 55,306$ -$
Resources (Inflows):
Intergovernmental 43,480 43,480 43,651 171
Use of money and property - - 880 880
Amounts Available for Appropriations 98,786 98,786 99,837 1,051
Charges to Appropriation (Outflow):
Engineering and public works 57,070 57,620 54,045 3,575
Total Charges to Appropriations 57,070 57,620 54,045 3,575
Budgetary Fund Balance, June 30 (Budgetary Basis)41,716$ 41,166$ 45,792 4,626$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)45,792$
170
CITY OF RANCHO CUCAMONGA
SAFETEA-LU Grant
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 468,295$ 468,295$ 468,295$ -$
Resources (Inflows):
Use of money and property 4,810 8,110 23,523 15,413
Amounts Available for Appropriations 473,105 476,405 491,818 15,413
Charges to Appropriation (Outflow):
Transfers out - 488,890 491,818 (2,928)
Total Charges to Appropriations - 488,890 491,818 (2,928)
Budgetary Fund Balance, June 30 (Budgetary Basis)473,105$ (12,485)$ - 12,485$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)-$
171
CITY OF RANCHO CUCAMONGA
Underground Utilities
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 11,253,331$ 11,253,331$ 11,253,331$ -$
Resources (Inflows):
Use of money and property 124,350 204,300 109,160 (95,140)
Developer participation - - 1,400,000 1,400,000
Amounts Available for Appropriations 11,377,681 11,457,631 12,762,491 1,304,860
Charges to Appropriation (Outflow):
Engineering and public works 4,980 5,100 5,100 -
Total Charges to Appropriations 4,980 5,100 5,100 -
Budgetary Fund Balance, June 30 (Budgetary Basis)11,372,701$ 11,452,531$ 12,757,391 1,304,860$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)12,757,391$
172
CITY OF RANCHO CUCAMONGA
Citywide Infrastructure Improvement
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 25,041,898$ 25,041,898$ 25,041,898$ -$
Resources (Inflows):
Intergovernmental - 16,423,630 16,423,622 (8)
Use of money and property 268,110 451,440 99,741 (351,699)
Miscellaneous - 205,480 206,165 685
Transfers in - 4,406,850 6,911,161 2,504,311
Amounts Available for Appropriations 25,310,008 46,529,298 48,682,587 2,153,289
Charges to Appropriation (Outflow):
Engineering and public works 25,540 182,459 181,458 1,001
Capital outlay 1,421,000 1,901,841 1,512,078 389,763
Transfers out - 9,240 9,237 3
Total Charges to Appropriations 1,446,540 2,093,540 1,702,773 390,767
Budgetary Fund Balance, June 30 (Budgetary Basis)23,863,468$ 44,435,758$ 46,979,814 2,544,056$
Encumbrances 956,320
Budgetary Fund Balance, June 30 (GAAP Basis)47,936,134$
173
CITY OF RANCHO CUCAMONGA
Proposition 1B
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 291,347$ 291,347$ 291,347$ -$
Resources (Inflows):
Use of money and property 2,790 4,670 13,419 8,749
Amounts Available for Appropriations 294,137 296,017 304,766 8,749
Charges to Appropriation (Outflow):
Engineering and public works 110 110 110 -
Transfers out - 283,060 304,656 (21,596)
Total Charges to Appropriations 110 283,170 304,766 (21,596)
Budgetary Fund Balance, June 30 (Budgetary Basis)294,027$ 12,847$ - (12,847)$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)-$
174
CITY OF RANCHO CUCAMONGA
Integrated Waste Management
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,673,381$ 4,673,381$ 4,673,381$ -$
Resources (Inflows):
Taxes 1,675,160 1,845,450 1,874,939 29,489
Licenses and permits 40,600 30,600 29,007 (1,593)
Use of money and property 40,550 73,170 43,962 (29,208)
Miscellaneous 75,000 100,500 148,766 48,266
Transfers in 5,000 5,000 2,942 (2,058)
Amounts Available for Appropriations 6,509,691 6,728,101 6,772,997 44,896
Charges to Appropriation (Outflow):
Engineering and public works 1,336,170 1,382,690 1,308,138 74,552
Transfers out 218,390 218,390 218,390 -
Total Charges to Appropriations 1,554,560 1,601,080 1,526,528 74,552
Budgetary Fund Balance, June 30 (Budgetary Basis)4,955,131$ 5,127,021$ 5,246,469 119,448$
Encumbrances 30
Budgetary Fund Balance, June 30 (GAAP Basis)5,246,499$
175
CITY OF RANCHO CUCAMONGA
SB1 - TCEP
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental 62,352,350 9,150,000 5,526,094 (3,623,906)
Miscellaneous - - 133,651 133,651
Transfers in - 4,470 4,461 (9)
Amounts Available for Appropriations 62,352,350 9,154,470 5,664,206 (3,490,264)
Charges to Appropriation (Outflow):
Engineering and public works 2,350 2,410 2,410 -
Capital outlay 62,350,000 10,000,000 9,802,312 197,688
Total Charges to Appropriations 62,352,350 10,002,410 9,804,722 197,688
Budgetary Fund Balance, June 30 (Budgetary Basis)-$ (847,940)$ (4,140,516) (3,292,576)$
Encumbrances 403,798
Budgetary Fund Balance, June 30 (GAAP Basis)(3,736,718)$
176
CITY OF RANCHO CUCAMONGA
Public Art Trust Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 558,967$ 558,967$ 558,967$ -$
Resources (Inflows):
Use of money and property 6,050 9,570 8,000 (1,570)
Developer participation 100,000 50,000 62,495 12,495
Amounts Available for Appropriations 665,017 618,537 629,462 10,925
Charges to Appropriation (Outflow):
Community development 48,510 63,520 35,068 28,452
Total Charges to Appropriations 48,510 63,520 35,068 28,452
Budgetary Fund Balance, June 30 (Budgetary Basis)616,507$ 555,017$ 594,394 39,377$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)594,394$
177
CITY OF RANCHO CUCAMONGA
State Grants Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (8,108)$ (8,108)$ (8,108)$ -$
Resources (Inflows):
Intergovernmental 102,360 3,382,630 978,038 (2,404,592)
Use of money and property - - 4,054 4,054
Amounts Available for Appropriations 94,252 3,374,522 973,984 (2,400,538)
Charges to Appropriation (Outflow):
General government 96,210 438,180 376,333 61,847
Capital outlay - 2,628,300 2,621,138 7,162
Transfers out 6,150 316,150 314,092 2,058
Total Charges to Appropriations 102,360 3,382,630 3,311,563 71,067
Budgetary Fund Balance, June 30 (Budgetary Basis)(8,108)$ (8,108)$ (2,337,579) (2,329,471)$
Encumbrances 271,052
Budgetary Fund Balance, June 30 (GAAP Basis)(2,066,527)$
178
CITY OF RANCHO CUCAMONGA
Federal Grants Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,465$ 2,465$ 2,465$ -$
Resources (Inflows):
Intergovernmental 1,000,000 1,033,540 962,162 (71,378)
Use of money and property - - 637 637
Amounts Available for Appropriations 1,002,465 1,036,005 965,264 (70,741)
Charges to Appropriation (Outflow):
General government - 31,540 31,534 6
Capital outlay 1,000,000 - - -
Debt service:
Transfers out - 1,002,000 1,000,866 1,134
Total Charges to Appropriations 1,000,000 1,033,540 1,032,400 1,140
Budgetary Fund Balance, June 30 (Budgetary Basis)2,465$ 2,465$ (67,136) (69,601)$
Encumbrances 8,069
Budgetary Fund Balance, June 30 (GAAP Basis)(59,067)$
179
CITY OF RANCHO CUCAMONGA
AD 91-2 Redemption-Day Canyon
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 80,815$ 80,815$ 80,815$ -$
Resources (Inflows):
Taxes 26,640 26,640 26,553 (87)
Use of money and property 730 1,220 905 (315)
Amounts Available for Appropriations 108,185 108,675 108,273 (402)
Charges to Appropriation (Outflow):
General government 24,110 23,950 23,472 478
Total Charges to Appropriations 24,110 23,950 23,472 478
Budgetary Fund Balance, June 30 (Budgetary Basis)84,075$ 84,725$ 84,801 76$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)84,801$
180
CITY OF RANCHO CUCAMONGA
PD 85 Maintenance
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,332,241$ 3,332,241$ 3,332,241$ -$
Resources (Inflows):
Taxes 1,176,840 1,238,050 1,166,047 (72,003)
Charges for services 21,590 21,590 31,302 9,712
Use of money and property 126,340 176,550 218,447 41,897
Miscellaneous 100 100 - (100)
Transfers in 207,510 211,380 153,467 (57,913)
Amounts Available for Appropriations 4,864,621 4,979,911 4,901,504 (78,407)
Charges to Appropriation (Outflow):
Engineering and public works 1,255,780 1,298,290 1,106,739 191,551
Capital outlay 659,870 771,500 637,332 134,168
Total Charges to Appropriations 1,915,650 2,069,790 1,744,071 325,719
Budgetary Fund Balance, June 30 (Budgetary Basis)2,948,971$ 2,910,121$ 3,157,433 247,312$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)3,157,433$
181
CITY OF RANCHO CUCAMONGA
CFD 2000-03 Park Maintenance
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 488,384$ 488,384$ 488,384$ -$
Resources (Inflows):
Taxes 566,690 566,690 557,853 (8,837)
Charges for services - - 60 60
Use of money and property 3,960 6,230 2,234 (3,996)
Amounts Available for Appropriations 1,059,034 1,061,304 1,048,531 (12,773)
Charges to Appropriation (Outflow):
General government 526,910 508,200 429,873 78,327
Total Charges to Appropriations 526,910 508,200 429,873 78,327
Budgetary Fund Balance, June 30 (Budgetary Basis)532,124$ 553,104$ 618,658 65,554$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)618,658$
182
CITY OF RANCHO CUCAMONGA
CFD 2017-01 No. Etiwanda
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,591$ 3,591$ 3,591$ -$
Resources (Inflows):
Taxes 3,020 3,020 3,016 (4)
Use of money and property - - (176) (176)
Amounts Available for Appropriations 6,611 6,611 6,431 (180)
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)5,391$ 5,391$ 5,211 (180)$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)5,211$
183
CITY OF RANCHO CUCAMONGA
CFD 2018-01 Empire Lakes
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 190,181$ 190,181$ 190,181$ -$
Resources (Inflows):
Taxes 257,650 257,650 257,007 (643)
Use of money and property 2,200 4,550 (2,649) (7,199)
Amounts Available for Appropriations 450,031 452,381 444,539 (7,842)
Charges to Appropriation (Outflow):
General government 41,920 42,990 57,317 (14,327)
Transfers out 116,940 116,940 116,940 -
Total Charges to Appropriations 158,860 159,930 174,257 (14,327)
Budgetary Fund Balance, June 30 (Budgetary Basis)291,171$ 292,451$ 270,282 (22,169)$
Encumbrances 35,184
Budgetary Fund Balance, June 30 (GAAP Basis)305,466$
184
CITY OF RANCHO CUCAMONGA
Enhanced Infrastructure Financing District
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (241,798)$ (241,798)$ (241,798)$ -$
Resources (Inflows):
Taxes - 97,040 97,037 (3)
Use of money and property - 4,300 - (4,300)
Amounts Available for Appropriations (241,798) (140,458) (144,761) (4,303)
Charges to Appropriation (Outflow):
General government 51,350 59,850 41,917 17,933
Total Charges to Appropriations 51,350 59,850 41,917 17,933
Budgetary Fund Balance, June 30 (Budgetary Basis)(293,148)$ (200,308)$ (186,678) 13,630$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)(186,678)$
185
CITY OF RANCHO CUCAMONGA
Industrial Area Traffic Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Use of money and property - - (73,278) (73,278)
Developer participation - 104,150 1,860,627 1,756,477
Amounts Available for Appropriations - 104,150 1,787,349 1,683,199
Budgetary Fund Balance, June 30 (Budgetary Basis)-$ 104,150$ 1,787,349 1,683,199$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)1,787,349$
-
186
CITY OF RANCHO CUCAMONGA
Opioid Settlement Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental - 156,760 - (156,760)
Use of money and property - - (5,464) (5,464)
Amounts Available for Appropriations - 156,760 (5,464) (162,224)
Budgetary Fund Balance, June 30 (Budgetary Basis)-$ 156,760$ (5,464) (162,224)$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)(5,464)$
-
187
CITY OF RANCHO CUCAMONGA
Capital Projects Funds
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)
For the Year Ended June 30, 2023
Variance with
CAPITAL PROJECTS FUND Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 7,133,412$ 7,133,412$ 7,133,412$ -$
Resources (Inflows):
Use of money and property 79,410 141,240 394,707 253,467
Transfers in - 41,130 41,128 (2)
Amounts Available for Appropriations 7,212,822 7,315,782 7,569,247 253,465
Charges to Appropriation (Outflow):
General government 1,240 1,240 1,240 -
Community development - 927,170 945,884 (18,714)
Transfers out - 5,875,530 5,895,221 (19,691)
Total Charges to Appropriations 1,240 6,803,940 6,842,345 (38,405)
Budgetary Fund Balance, June 30 (Budgetary Basis)7,211,582$ 511,842$ 726,902 215,060$
Encumbrances -
Budgetary Fund Balance, June 30 (GAAP Basis)726,902$
188
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.
189
CITY OF RANCHO CUCAMONGA
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Total Internal
Service
Funds
ASSETS
Current assets:
Cash and investments 2,955,167$ 8,583,613$ 11,538,780$
Receivables:
Accounts - 29,020 29,020
Accrued interest 15,672 36,607 52,279
Prepaid costs - 128,070 128,070
Total current assets 2,970,839 8,777,310 11,748,149
Noncurrent:
Capital assets, net 2,421,856 736,482 3,158,338
Total noncurrent assets 2,421,856 736,482 3,158,338
Total assets 5,392,695 9,513,792 14,906,487
LIABILITIES
Current liabilities:
Accounts payable 296,127 906,961 1,203,088
Accrued liabilities - 1,913 1,913
Total current liabilities 296,127 908,874 1,205,001
Total liabilities 296,127 908,874 1,205,001
NET POSITION
Invested in capital assets 2,421,856 736,482 3,158,338
Unrestricted 2,674,712 7,868,436 10,543,148
Total net position 5,096,568$ 8,604,918$ 13,701,486$
Equipment
and Vehicle
Replacement
Computer
Equipment/
Technology
Replacement
190
CITY OF RANCHO CUCAMONGA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2023
Total Internal
Service
Funds
OPERATING REVENUES
Interdepartmental changes 1,245,230$ 1,007,050$ 2,252,280$
Miscellaneous - 1,331,430 1,331,430
Total operating revenues 1,245,230 2,338,480 3,583,710
OPERATING EXPENSES
Contractual services 579,569 414,876 994,445
Maintenance and operations 12,150 2,939,984 2,952,134
Depreciation/amortization 706,526 870,946 1,577,472
Total operating expenses 1,298,245 4,225,806 5,524,051
Operating income (loss)(53,015) (1,887,326) (1,940,341)
NONOPERATING REVENUES (EXPENSES)
Interest revenue 24,946 141,841 166,787
Interest expense - (12,926) (12,926)
Total nonoperating revenues (expenses)24,946 128,915 153,861
Income (loss) before contributions and transfers (28,069) (1,758,411) (1,786,480)
Contributions 14,607 - 14,607
Transfers in 156,300 1,427,330 1,583,630
Change in net position 142,838 (331,081) (188,243)
Net position-beginning 4,953,730 8,935,999 13,889,729
Net position-ending 5,096,568$ 8,604,918$ 13,701,486$
Equipment
and Vehicle
Replacement
Computer
Equipment/
Technology
Replacement
191
CITY OF RANCHO CUCAMONGA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
Total Internal
Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided 1,245,230$ 2,338,480$ 3,583,710$
Payments to suppliers and service providers (404,493) (2,443,867) (2,848,360)
Net cash provided by (used for)
operating activities 840,737 (105,387) 735,350
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 156,300 1,427,330 1,583,630
Contributions 14,607 - 14,607
Net cash provided by (used for)
noncapital financing activities 170,907 1,427,330 1,598,237
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (439,330) (122,545) (561,875)
Principal paid on capital debt - (507,340) (507,340)
Interest paid on capital debt - (19,990) (19,990)
Net cash provided by (used for)
capital and related financing activities (439,330) (649,875) (1,089,205)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 14,366 115,022 129,388
Net cash provided by (used for)
investing activities 14,366 115,022 129,388
Net increase (decrease) in
cash and cash equivalents 586,680 787,090 1,373,770
Cash and cash equivalents-beginning 2,368,487 7,796,523 10,165,010
Cash and cash equivalents-ending 2,955,167$ 8,583,613$ 11,538,780$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)(53,015)$ (1,887,326)$ (1,940,341)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 706,526 870,946 1,577,472
(Increase) decrease in prepaid items - 98,247 98,247
Increase (decrease) in accounts payable 187,226 810,833 998,059
Increase (decrease) in accrued liabilities - 1,913 1,913
Total adjustments 893,752 1,781,939 2,675,691$
Net cash provided by (used for)
operating activities 840,737$ (105,387)$ 735,350$
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
There was no non-cash investing, capital and financind activities in the current fiscal year
Equipment
and Vehicle
Replacement
Computer
Equipment/
Technology
Replacement
192
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.
Community 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.
Community 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.
193
ASSETS
Cash and investments 2,968,023$ 86,374$ 431,870$ 553,898$
Receivables:
Accounts - - - -
Taxes 25,326 - - 3,877
Accrued interest 10,236 231 867 1,542
Restricted assets:
Cash and investments with fiscal agents 1,268,652 23,418 215,040 267,085
Total assets 4,272,237 110,023 647,777 826,402
NET POSITION
Restricted for:
Organizations and other governments 4,272,237 110,023 647,777 826,402
Total net position 4,272,237$ 110,023$ 647,777$ 826,402$
CFD 2000-01 CFD 2000-02 CFD 2000-03
CITY OF RANCHO CUCAMONGA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2023
CFD 2004-01
194
ASSETS
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Restricted assets:
Cash and investments with fiscal agents
Total assets
NET POSITION
Restricted for:
Organizations and other governments
Total net position
CITY OF RANCHO CUCAMONGA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2023 (Continued)
1,249,265$ 60,119$ 906,197$ 200,702$
- - - -
4,748 - 284 -
13,263 - 2,737 540
312,574 30,348 1,836,798 136,341
1,579,850 90,467 2,746,016 337,583
1,579,850 90,467 2,746,016 337,583
1,579,850$ 90,467$ 2,746,016$ 337,583$
CFD 2001-01
Series A
CFD 2003-01
Series B
CFD 2001-01
Series B
CFD 2003-01
Series A
195
ASSETS
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Restricted assets:
Cash and investments with fiscal agents
Total assets
NET POSITION
Restricted for:
Organizations and other governments
Total net position
CITY OF RANCHO CUCAMONGA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2023 (Continued)
Total
Custodial
Funds
356,783$ 236,902$ 7,050,133$
- 2,016 2,016
916 965 36,116
1,157 790 31,363
133,229 80,641 4,304,126
492,085 321,314 11,423,754
492,085 321,314 11,423,754
492,085$ 321,314$ 11,423,754$
CFD 2006-01 CFD 2006-02
196
Net Position
ADDITIONS
Collection of special taxes 2,337,277$ 73,680$ 517,806$ 562,115$
Investment earnings:
Interest 60,424 1,232 8,867 11,691
Net Change in fair value of investments 13,040 176 2,996 881
Contributions from City 51,177 63 - -
Total additions 2,461,918 75,151 529,669 574,687
DEDUCTIONS
Administrative expenses 22,300 18,328 49,038 21,140
Interest expense 1,062,747 5,246 51,850 205,959
Principal expense 1,285,000 48,000 446,000 304,000
Total deductions 2,370,047 71,574 546,888 531,099
Net increase (decrease) in fiduciary net position 91,871 3,577 (17,219) 43,588
Net position-beginning 4,180,366 106,446 664,996 782,814
Net position-ending 4,272,237$ 110,023$ 647,777$ 826,402$
CITY OF RANCHO CUCAMONGA
Combining Statement of Changes in Fiduciary
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2023
CFD 2004-01 CFD 2000-01 CFD 2000-02 CFD 2000-03
197
Net Position
ADDITIONS
Collection of special taxes
Investment earnings:
Interest
Net Change in fair value of investments
Contributions from City
Total additions
DEDUCTIONS
Administrative expenses
Interest expense
Principal expense
Total deductions
Net increase (decrease) in fiduciary net position
Net position-beginning
Net position-ending
CITY OF RANCHO CUCAMONGA
Combining Statement of Changes in Fiduciary
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2023 (Continued)
668,517$ 61,467$ 1,225,838$ 209,165$
23,154 982 53,823 5,314
(25,208) 176 8,283 1,057
685,743 - 200,553 -
1,352,206 62,625 1,488,497 215,536
58,218 2,008 26,470 8,680
170,311 16,490 562,544 90,316
425,000 41,000 570,000 115,000
653,529 59,498 1,159,014 213,996
698,677 3,127 329,483 1,540
881,173 87,340 2,416,533 336,043
1,579,850$ 90,467$ 2,746,016$ 337,583$
CFD 2001-01
Series A
CFD 2001-01
Series B
CFD 2003-01
Series A
CFD 2003-01
Series B
198
Net Position
ADDITIONS
Collection of special taxes
Investment earnings:
Interest
Net Change in fair value of investments
Contributions from City
Total additions
DEDUCTIONS
Administrative expenses
Interest expense
Principal expense
Total deductions
Net increase (decrease) in fiduciary net position
Net position-beginning
Net position-ending
CITY OF RANCHO CUCAMONGA
Combining Statement of Changes in Fiduciary
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2023 (Continued)
Total
Custodial
Funds
291,525$ 179,413$ 6,126,803$
6,818 4,299 176,604
352 176 1,929
1,848 6,500 945,884
300,543 190,388 7,251,220
14,288 14,248 234,718
114,111 67,777 2,347,351
144,000 86,000 3,464,000
272,399 168,025 6,046,069
28,144 22,363 1,205,151
463,941 298,951 10,218,603
492,085$ 321,314$ 11,423,754$
CFD 2006-01 CFD 2006-02
199
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200
City of Rancho Cucamonga
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
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.
201
THIS PAGE INTENTIONALLY LEFT BLANK
202
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 outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the 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.
203
2023 2022 2021 2020
Governmental activities:
Investment in capital assets 814,128,463$ 799,863,587$ 801,333,979$ 784,815,868$
Restricted 485,593,578 464,700,055 386,151,633 362,202,181
Unrestricted 147,512,123 115,274,716 102,102,912 92,851,674
Total governmental activities net position 1,447,234,164$ 1,379,838,358$ 1,289,588,524$ 1,239,869,723$
Business-type activities:
Investment in capital assets 44,627,315$ 42,752,205$ 39,126,035$ 38,550,464$
Restricted 891,016 403,327 351,851 584,719
Unrestricted 16,459,630 17,256,997 18,811,705 17,960,938
Total business-type activities net position 61,977,961$ 60,412,529$ 58,289,591$ 57,096,121$
Primary government:
Investment in capital assets 858,755,778$ 842,615,792$ 840,460,014$ 823,366,332$
Restricted 486,484,594 465,103,382 386,503,484 362,786,900
Unrestricted 163,971,753 132,531,713 120,914,617 110,812,612
Total primary government net position 1,509,212,125$ 1,440,250,887$ 1,347,878,115$ 1,296,965,844$
Fiscal Year
CITY OF RANCHO CUCAMONGA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
204
2019 2018 2017 2016 2015 2014
786,942,172$ 819,589,002$ 791,849,229$ 738,555,693$ 723,399,215$ 718,539,205$
347,133,366 314,706,032 376,102,366 343,261,614 294,289,084 292,367,349
90,907,741 86,031,110 58,567,782 101,752,275 119,693,433 164,042,159
1,224,983,279$ 1,220,326,144$ 1,226,519,377$ 1,183,569,582$ 1,137,381,732$ 1,174,948,713$
34,506,531$ 33,679,139$ 32,434,369$ 28,183,314$ 25,869,537$ 25,457,466$
629,390 733,900 770,383 717,336 718,571 858,497
17,007,191 15,096,398 12,073,232 10,145,015 10,875,224 10,380,836
52,143,112$ 49,509,437$ 45,277,984$ 39,045,665$ 37,463,332$ 36,696,799$
821,448,703$ 853,268,141$ 824,283,598$ 766,739,007$ 749,268,752$ 743,996,671$
347,762,756 315,439,932 376,872,749 343,978,950 295,007,655 293,225,846
107,914,932 101,127,508 70,641,014 111,897,290 130,568,657 174,422,995
1,277,126,391$ 1,269,835,581$ 1,271,797,361$ 1,222,615,247$ 1,174,845,064$ 1,211,645,512$
Fiscal Year
CITY OF RANCHO CUCAMONGA
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
205
2023 2022 2021 2020 2019
Expenses:
Governmental activities:
General government 24,034,094$ 18,945,300$ 22,450,487$ 19,286,640$ 19,670,962$
Public safety-police 46,384,884 45,826,735 44,200,543 41,858,815 40,689,664
Public safety-fire protection 59,429,842 38,905,872 43,819,839 42,713,637 37,963,605
Public safety-animal center 3,070,329 2,362,765 2,652,789 3,329,047 3,307,736
Community development 20,978,521 17,757,830 21,053,431 18,942,599 17,684,128
Community services 15,274,331 13,172,949 12,922,140 17,634,143 18,442,135
Engineering and public works 40,969,175 29,237,399 33,574,147 35,467,833 30,443,979
Interest on long-term debt 83,214 76,038 269,752 258,635 232,919
Total governmental activities expenses 210,224,390 166,284,888 180,943,128 179,491,349 168,435,128
Business-type activities:
Municipal Utility 16,032,760 13,503,837 10,747,217 10,641,764 9,407,567
Fiber Optic Network 893,179 801,230 1,044,879 736,499 658,291
Sports Complex 2,468,360 1,719,849 2,302,733 2,857,684 2,746,411
Second Story Library and Beyond - - - - -
REGIS Connect - - - 270 19,284
Total business-type activities expenses 19,394,299 16,024,916 14,094,829 14,236,217 12,831,553
Total primary government expenses 229,618,689 182,309,804 195,037,957 193,727,566 181,266,681
Program revenues:
Governmental activities:
Charges for services:
General government 11,659,179 10,176,185 9,475,907 8,984,984 8,576,190
Public safety-police 1,126,473 998,096 1,358,233 778,374 1,541,582
Public safety-fire protection 155,812 140,675 116,648 330,210 552,486
Public safety-animal center 146,569 146,314 109,803 186,283 215,137
Community development 11,802,366 11,627,478 11,770,864 11,391,312 11,281,208
Community services 1,485,456 609,768 483,665 2,302,821 3,260,244
Engineering and public works 10,158,777 3,874,898 6,998,156 6,619,231 8,778,764
Operating contributions and grants 14,253,133 39,846,497 15,901,843 12,062,536 10,961,729
Capital contributions and grants 45,188,652 30,787,358 24,768,600 14,633,970 17,347,427
Total governmental activities
program revenues 95,976,417 98,207,269 70,983,719 57,289,721 62,514,767
Business-type activities:
Charges for services:
Municipal Utility 18,864,181 14,551,353 12,663,515 12,389,983 12,777,773
Fiber Optic Network 413,356 326,985 103,575 91,596 81,605
Sports Complex 175,549 246,722 236,650 479,896 540,972
Second Story Library and Beyond - - - - -
REGIS Connect - - - - 25,470
Operating contributions and grants 30,564 133,455 - - -
Capital contributions and grants 577,414 2,821,754 1,442,873 4,050,235 662,677
Total business-type activities
program revenues 20,061,064 18,080,269 14,446,613 17,011,710 14,088,497
Total primary government
program revenues 116,037,481 116,287,538 85,430,332 74,301,431 76,603,264
Fiscal Year
(accrual basis of accounting)
Last Ten Fiscal Years
Statement of Activities (Condensed)
CITY OF RANCHO CUCAMONGA
206
2018 2017 2016 2015 2014
31,792,123$ 19,738,312$ 18,418,827$ 17,955,450$ 16,643,829$
38,576,433 36,753,481 34,083,785 32,076,421 30,849,283
34,557,791 32,821,186 29,524,711 30,277,795 29,127,968
3,263,155 3,414,315 2,697,430 2,721,890 2,569,847
16,675,413 16,799,089 14,653,176 14,899,940 15,772,923
19,060,265 16,437,565 13,852,277 14,995,308 13,690,338
31,573,819 35,926,739 36,298,028 29,180,515 29,600,137
213,912 172,041 806,322 239,368 234,057
175,712,911 162,062,728 150,334,556 142,346,687 138,488,382
8,419,196 7,904,738 8,436,122 8,341,877 8,173,924
144,924 - - - 33,853
2,851,970 2,981,392 2,663,119 2,536,440 2,186,016
- - - - -
104,969 167,618 65,042 57,003 33,853
11,521,059 11,053,748 11,164,283 10,935,320 10,427,646
187,233,970 173,116,476 161,498,839 153,282,007 148,916,028
7,298,350 7,017,166 7,129,716 6,903,116 6,987,387
1,525,700 1,444,596 1,040,776 1,203,718 1,152,805
314,507 - 242,620 1,465,438 1,065,852
211,865 191,073 215,147 206,941 186,434
10,807,270 10,726,558 10,764,422 12,842,242 10,814,827
3,329,478 3,251,353 3,316,077 3,162,413 3,295,354
5,896,355 5,211,940 3,455,200 4,332,873 4,841,725
8,845,496 5,326,579 14,464,379 8,216,190 9,237,651
16,584,193 8,184,228 31,356,340 12,145,954 6,241,838
54,813,214 41,353,493 71,984,677 50,478,885 43,823,873
12,317,610 11,713,175 11,336,608 11,973,419 11,276,531
58,857 23,750 - - -
248,828 218,220 169,099 262,818 300,379
- - - - -
42,930 114,120 82,300 82,490 58,949
- - - - -
679,410 4,560,732 - - -
13,347,635 16,629,997 11,588,007 12,318,727 11,635,859
68,160,849 57,983,490 83,572,684 62,797,612 55,459,732
Fiscal Year
CITY OF RANCHO CUCAMONGA
Statement of Activities (Condensed) (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
207
2023 2022 2021 2020 2019
Fiscal Year
(accrual basis of accounting)
Last Ten Fiscal Years
Statement of Activities (Condensed)
CITY OF RANCHO CUCAMONGA
Net revenues (expenses):
Governmental activities (114,247,973) (68,077,619) (109,959,409) (122,201,628) (105,920,361)
Business-type activities 666,765 2,055,353 351,784 2,775,493 1,256,944
Total net revenues (expenses)(113,581,208) (66,022,266) (109,607,625) (119,426,135) (104,663,417)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 101,598,563 96,971,793 91,685,839 77,021,958 75,479,699
Admissions tax - 2,042 - 3,728 7,493
Transient occupancy taxes 4,950,215 4,423,148 2,726,555 3,511,232 4,054,058
Sales taxes 40,610,316 40,767,359 34,565,886 29,480,466 32,803,372
Franchise taxes 10,762,821 9,991,283 9,229,371 8,579,436 8,000,389
Motor vehicle in lieu, unrestricted 178,842 202,321 128,734 141,996 84,803
Use of money and property 10,055,661 (12,450,392) 5,956,806 13,421,654 19,113,374
Other 13,528,967 18,419,397 7,576,654 6,216,788 7,764,377
Contributions from other governments - - - - -
Gain on sale of capital assets 28,628 1,061,719 - - 57,563
Extraordinary item - - - - -
Special Item - - - - (36,406,951)
Transfers (70,234) (1,061,217) (809,757) (1,289,186) (380,681)
Total governmental activities 181,643,779 158,327,453 151,060,088 137,088,072 110,577,496
Business-type activities:
Admission tax 154,477 152,009 32,500 140,277 146,181
Use of money and property 614,662 (1,151,503) (11,742) 748,053 849,869
Other 59,294 5,862 11,171 - -
Transfers 70,234 1,061,217 809,757 1,289,186 380,681
Total business-type activities 898,667 67,585 841,686 2,177,516 1,376,731
Total primary government 182,542,446 158,395,038 151,901,774 139,265,588 111,954,227
Changes in net position:
Governmental activities 67,395,806 90,249,834 41,100,679 14,886,444 4,657,135
Business-type activities 1,565,432 2,122,938 1,193,470 4,953,009 2,633,675
Total primary government 68,961,238$ 92,372,772$ 42,294,149$ 19,839,453$ 7,290,810$
208
2018 2017 2016 2015 2014
Fiscal Year
CITY OF RANCHO CUCAMONGA
Statement of Activities (Condensed) (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
(120,899,697) (120,709,235) (78,349,879) (91,867,802) (94,664,509)
1,826,576 5,576,249 423,724 1,383,407 1,208,213
(119,073,121) (115,132,986) (77,926,155) (90,484,395) (93,456,296)
72,760,297 67,294,479 65,542,841 63,237,623 58,911,798
6,008 4,810 4,063 27,642 55,258
3,578,006 3,282,360 3,055,397 2,729,270 2,554,570
31,478,294 29,288,386 28,231,405 28,043,495 26,277,429
7,997,948 7,538,415 7,678,384 7,753,103 7,515,229
93,340 84,510 70,457 73,316 75,900
5,781,295 5,735,054 7,644,579 6,691,150 7,933,441
7,955,074 6,811,380 10,570,641 10,087,638 8,820,348
- - - - 29,851,545
- - - - 100,301
- - - (295,169) 58,427
- 38,257,705 - - -
(676,159) (222,537) (534,114) (200,980) (332,830)
128,974,103 158,074,562 122,263,653 118,147,088 141,821,416
62,195 127,934 196,385 70,278 103,308
390,833 256,370 375,435 310,644 304,113
601,075 49,229 52,675 17,306 59,888
676,159 222,537 534,114 200,980 332,830
1,730,262 656,070 1,158,609 599,208 800,139
130,704,365 158,730,632 123,422,262 118,746,296 142,621,555
8,074,406 37,365,327 43,913,774 26,279,286 47,156,907
3,556,838 6,232,319 1,582,333 1,982,615 2,008,352
11,631,244$ 43,597,646$ 45,496,107$ 28,261,901$ 49,165,259$
209
2023 2022 2021 2020
General Fund:
Nonspendable 22,702,647$ 23,311,819$ 13,690,749$ 14,898,477$
Restricted 16,546,349 16,162,437 9,631,596 12,720,339
Committed 107,546,210 101,962,810 73,280,103 68,240,058
Assigned 34,203,397 31,683,170 30,154,237 24,978,451
Total General Fund 180,998,603$ 173,120,236$ 126,756,685$ 120,837,325$
All other governmental funds:
Nonspendable 316,340$ 346,301$ 353,000$ 210,875$
Restricted 405,158,783 365,313,909 336,949,180 322,090,080
Committed 54,680,993 46,159,904 45,172,751 41,474,853
Assigned 20,868,413 19,663,578 28,464,821 20,872,492
Unassigned (10,098,864) (4,484,709) (4,290,919) (4,899,160)
Total all other governmental funds 470,925,665$ 426,998,983$ 406,648,833$ 379,749,140$
Fiscal Year
CITY OF RANCHO CUCAMONGA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
210
2019 2018 2017 2016 2015 2014
15,996,672$ 16,980,622$ 6,035,467$ 6,304,659$ 4,024,826$ 14,266,118$
10,000,336 6,351,557 8,152,268 4,256,949 3,091,255 1,527,198
72,103,374 71,335,361 69,939,616 75,193,291 74,310,635 68,857,871
20,680,463 20,414,553 27,837,965 24,762,041 24,724,037 24,541,289
118,780,845$ 115,082,093$ 111,965,316$ 110,516,940$ 106,150,753$ 109,192,476$
273,968$ 333,012$ 152,628$ 143,987$ 121,898,056$ 119,252,242$
300,217,925 276,926,931 295,093,183 270,307,985 129,495,612 109,579,369
41,633,706 40,295,153 41,954,990 43,026,277 41,239,963 40,846,591
22,798,449 15,287,695 9,290,502 25,606,377 23,778,666 22,697,507
(5,587,201) (7,096,108) (142,352) (1,131,670) (514,340) (576,924)
359,336,847$ 325,746,683$ 346,348,951$ 337,952,956$ 315,897,957$ 291,798,785$
CITY OF RANCHO CUCAMONGA
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
211
2023 2022 2021 2020
Revenues:
Taxes 173,777,579$ 165,770,434$ 152,020,165$ 131,914,339$
Licenses and permits 6,924,691 6,352,583 5,777,822 5,597,387
Intergovernmental 40,437,400 51,403,759 25,525,250 17,265,617
Charges for services 8,614,854 5,791,232 5,552,615 7,561,050
Use of money and property 7,523,993 (14,305,601) 3,158,954 10,425,355
Fines and forfeitures 1,451,000 1,407,126 1,320,788 959,003
Contributions 1,144,019 1,700,219 248,823 432,035
Developer participation 15,737,685 18,044,293 11,902,117 8,399,023
Miscellaneous 11,414,485 18,498,172 7,874,647 6,386,915
Total revenues 267,025,706 254,662,217 213,381,181 188,940,724
Expenditures
Current:
General government 22,062,843 19,778,343 19,754,199 16,939,055
Public safety-police 45,771,248 45,213,099 43,507,427 41,110,280
Public safety-fire protection 47,694,918 45,126,100 42,825,333 35,465,674
Public safety-animal center 3,180,526 2,772,904 2,399,523 3,031,587
Community development 21,300,881 19,610,481 20,133,316 17,817,804
Community services 10,553,221 8,601,487 7,114,800 11,837,246
Engineering and public works 21,753,305 19,322,761 18,054,572 17,452,234
Capital outlay 43,810,590 24,129,169 33,256,726 20,759,403
Debt service:
Principal retirement 932,248 - - -
Interest and fiscal charges 70,288 42,278 167,698 191,382
Total expenditures 217,130,068 184,596,622 187,213,594 164,604,665
Excess (deficiency) of revenues
over (under) expenditures 49,895,638 70,065,595 26,167,587 24,336,059
Other financing sources (uses):
Transfers in 19,279,710 30,243,066 5,756,736 5,052,697
Transfers out (20,933,574) (37,139,933) (7,752,182) (7,019,213)
Leases - 226,622 - -
Subscriptions issued 3,527,856 - - -
Proceeds from sale of capital asset 35,419 3,318,351 28,790 99,230
Total other financing sources (uses)1,909,411 (3,351,894) (1,966,656) (1,867,286)
Extraordinary item - - - -
Net change in fund balances 51,805,049$ 66,713,701$ 24,200,931$ 22,468,773$
Debt service as a percentage of
noncapital expenditures*0.50%0.03%0.10%0.13%
Fiscal Year
CITY OF RANCHO CUCAMONGA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
212
2019 2018 2017 2016 2015 2014
133,377,533$ 128,469,600$ 119,970,717$ 119,703,685$ 113,149,656$ 107,276,318$
4,941,123 4,639,219 4,274,825 4,353,727 4,245,688 3,876,449
15,990,890 12,960,734 16,859,643 24,000,432 15,156,829 12,808,079
8,953,709 7,240,417 6,470,452 6,822,557 6,722,125 7,918,741
16,310,820 3,519,828 4,036,737 5,675,579 4,917,234 6,002,756
1,828,096 1,688,965 1,249,351 1,161,894 1,441,231 1,177,803
514,193 575,123 662,854 4,717,131 762,415 784,540
13,473,699 9,924,665 7,117,954 7,795,528 12,051,237 4,929,192
8,671,089 9,162,631 6,819,525 10,545,310 12,276,817 10,475,281
204,061,152 178,181,182 167,462,058 184,775,843 170,723,232 155,249,159
18,012,280 30,564,911 16,622,855 17,891,520 16,056,022 14,326,672
40,006,374 37,899,533 36,138,669 33,524,295 31,553,594 30,411,403
32,264,246 32,280,716 30,336,949 33,176,658 29,526,901 28,462,817
3,230,781 3,113,889 3,007,643 2,924,840 2,745,903 2,569,847
17,522,679 16,030,847 15,449,447 14,945,240 14,646,602 15,167,284
13,869,406 14,086,226 13,179,568 12,575,734 12,239,617 11,881,755
20,472,914 18,925,102 19,920,719 26,420,727 16,984,218 17,616,297
18,772,606 41,757,957 27,736,389 17,151,712 19,486,586 12,204,148
- 18,759 21,901 21,260 20,104 20,021
202,647 199,747 139,598 756,224 181,682 197,935
164,353,933 194,877,687 162,553,738 159,388,210 143,441,229 132,858,179
39,707,219 (16,696,505) 4,908,320 25,387,633 27,282,003 22,390,980
2,804,478 2,770,399 2,446,170 2,323,725 2,060,144 2,161,845
(5,283,519) (3,629,498) (3,259,107) (3,589,579) (3,107,795) (3,073,328)
- - - - - -
- - - - - -
60,738 70,113 164,520 25,331 24,178 100,301
(2,418,303) (788,986) (648,417) (1,240,523) (1,023,473) (811,182)
- - - - (5,201,081) (3,473,832)
37,288,916$ (17,485,491)$ 4,259,903$ 24,147,110$ 21,057,449$ 18,105,966$
0.14%0.12%0.11%0.55%0.16%0.24%
Fiscal Year
CITY OF RANCHO CUCAMONGA
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
213
2023 2022 2021 2020
Residential 22,890,240$ 21,273,133$ 20,468,775$ 19,563,158$
Commercial 3,120,391 3,037,908 2,927,439 2,824,976
Industrial 4,996,486 4,205,142 3,653,660 3,406,909
Dry Farm 103 983 973 954
Gov't Owned 2,929 2,872 2,831 3,882
Institutional 36,162 45,260 51,853 46,328
Irrigated 3,883 3,807 3,768 3,694
Miscellaneous 91,104 94,915 58,616 60,464
Recreational 38,075 38,103 34,823 35,309
Vacant 536,694 474,478 509,897 509,018
SBE Nonunitary 875 875 875 875
Unsecured 1,249,555 1,168,905 1,202,802 1,186,787
Unknown - - - -
TOTALS 32,966,497$ 30,346,381$ 28,916,312$ 27,642,354$
Total Direct Rate 0.17590%0.17792%0.17794%0.17794%
Notes:
Exempt values are not included in Total.
1
Data Source: San Bernardino County Assessor 2013/14 - 2022/23 Combined Tax Rolls; HdL, Coren & Cone
Beginning in 2017, 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.
In 1978, the voters of the State of California passed Proposition 13 which limited taxes to a total maximum
rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of
property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions,
property is only reassessed as a result of new construction activity or at the time it is sold to a new owner.
At that point, the property is reassessed based upon the added value of the construction or at the
purchase price (market value) or economic value of the property sold. The assessed valuation data
shown above represents the only data currently available with respect to the actual market value of taxable
property and is subject to the limitations described above.
CITY OF RANCHO CUCAMONGA
Assessed Value and Estimated Value of Taxable Property
(in thousands of dollars)
Last Ten Fiscal Years
Fiscal Year
214
2019 2018 2017 2016 2015 2014
18,747,242$ 17,775,114$ 16,641,454$ 16,063,674$ 15,244,895$ 13,988,519$
2,680,215 2,559,971 2,354,367 2,261,894 2,229,715 2,221,814
3,235,492 2,976,956 2,802,918 2,667,060 2,504,695 2,402,218
936 977 957 943 920 920
3,806 3,659 3,587 7,839 7,745 7,732
45,436 45,531 43,495 42,113 41,023 49,286
3,686 3,552 3,483 3,433 3,366 3,439
50,481 55,920 294,036 18,964 23,805 27,365
32,926 32,634 44,814 40,343 41,663 47,757
501,443 408,907 374,179 350,353 327,609 330,538
7,994 24,483 24,173 28,682 22,485 26,591
1,109,392 1,075,088 1,154,119 1,233,623 1,190,416 1,111,254
- - - - - -
26,419,049$ 24,962,792$ 1 23,741,582$ 22,718,921$ 21,638,337$ 20,217,433$
0.17794%0.17795%0.17790%0.17775%0.17772%0.47780%
Fiscal Year
CITY OF RANCHO CUCAMONGA
Assessed Value and Estimated Value of Taxable Property (Continued)
(in thousands of dollars)
Last Ten Fiscal Years
215
Agency 2023 2022 2021 2020 2019
Basic Levy1 1.00000 1.00000 1.00000 1.00000 1.00000
Alta Loma Elementary Bond 0.06280 0.07300 0.04570 0.06530 0.06800
Central Elementary Bond 0.05120 0.06140 0.04890 0.05020 0.04650
Chaffey Community College Bond 0.01370 0.01770 0.01110 0.02410 0.01530
Chaffey High School Bond 0.02940 0.03710 0.03520 0.03750 0.04020
0.03230 0.02330 0.02830 0.00340 0.02860
Fontana Unified School Bond 0.04840 0.05200 0.06710 0.04200 0.08900
Metropolitan Water Agency 0.00350 0.00350 0.00350 0.00350 0.00350
Upland Unified School Bond 0.04630 0.06340 0.05150 0.05600 0.05870
Total Direct & Overlapping2 Tax Rates 1.28760 1.33140 1.29130 1.28200 1.34980
City Share of 1% levy per Prop 133 0.17591 0.17591 0.17591 0.17591 0.17591
Redevelopment Rate4 - - - - -
Total Direct Rate5 0.17590 0.17792 0.17794 0.17794 0.17794
Notes:
1
2
3
4
5
In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00%
is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount,
property owners are charged taxes as a percentage of assessed property values for the payment of any voter
approved bonds.
Fiscal Year
Data Source: San Bernardino County Assessor 2013/14 - 2022/23 Tax Rate Table; HdL, Coren & Cone
Etiwanda Elementary Bond
Total Direct Rate is the weighted average of all individual direct rates applied by the City preparing the statistical
section information and excludes revenues derived from aircraft. Beginning in Fiscal Year 2013/14 the Total Direct
Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized
enforceable obligations are assumed to have been resolved during Fiscal Year 2012/13. For the purposes of this
report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.
Redevelopment Rate is based on the largest RDA tax rate area (TRA) and only includes rate(s) from indebtedness
adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the
incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the
Fiscal Year 2012/13 and years thereafter.
City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value
within the City. The ERAF portion of the City's Levy has been subtracted where known.
Overlapping rates are those of local and county governments that apply to property owners within the City. Not all
overlapping rates apply to all property owners.
CITY OF RANCHO CUCAMONGA
Direct and Overlapping Property Tax Rates
(Rate per $100 of taxable value)
Last Ten Fiscal Years
216
2018 2017 2016 2015 2014
1.00000 1.00000 1.00000 1.00000 1.00000
0.05640 0.04080 0.04170 0.04370 0.04500
0.06700 0.06880 0.06500 0.06600 0.07110
0.00880 0.01160 0.01130 0.01090 0.01570
0.02790 0.03190 0.04090 0.02940 0.03710
0.01690 - - - -
0.11130 0.11170 0.11450 0.13840 0.15160
0.00350 0.00350 0.00350 0.00350 0.00350
0.05510 0.06070 0.05250 0.04620 0.04840
1.34690 1.32900 1.32940 1.33810 1.37240
0.17591 0.17591 0.17591 0.17591 0.17591
- - - - -
0.17795 0.17790 0.17775 0.17772 0.47780
Fiscal Year
CITY OF RANCHO CUCAMONGA
Direct and Overlapping Property Tax Rates (Continued)
(Rate per $100 of taxable value)
Last Ten Fiscal Years
217
Percent of Percent of
Total City Total City
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Rancho Mall LLC 357,010,057$ 1.08%244,753,231$ 1.21%
BTC III Arrow Route CC LP 313,000,000 0.95%- 0.00%
Homecoming I at Terra Vista LLC 298,344,088 0.90%162,574,439 0.80%
Solamonte Owner LLC 225,060,000 0.68%- 0.00%
GSIC II Cucamonga Owner 216,333,333 0.66%- 0.00%
Bridge Point Rancho Cucamonga LLC 196,955,923 0.60%- 0.00%-
Frito Lay Inc 168,882,835 0.51%- 0.00%-
MG Victoria Arbors Apartments SLM LLC 140,352,000 0.43%- 0.00%
Schlosser Forge Company 138,200,098 0.42%- 0.00%-
Prologis California I LLC/Catellus 128,829,383 0.39%144,325,069 0.71%
Catellus Development Corporation - 0.00%- 0.00%
Frito Lay North America Inc - 0.00%90,278,520 0.45%
Knickerbocker Properties Inc XLVII - 0.00%83,169,584 0.41%
PPF MF 9200 Milliken Ave LP - 0.00%80,251,804 0.40%
RREEF AMERICA REIT II CORPORATION - 0.00%82,368,000 0.41%
THM ENT LLC - 0.00%- 0.00%
T-NAPF Meritage Ownership LLC - 0.00%116,029,895 0.57%
UDR RANCHO CUCAMONGA LP - 0.00%79,365,200 0.39%
Victoria Gardens Mall LLC - 0.00%- 0.00%
WNG Rancho Cucamonga 496 LLC - 0.00%100,872,016 0.50%
2,182,967,717$ 6.62%1,183,987,758$ 5.86%
CITY OF RANCHO CUCAMONGA
2023 2014
Current Year and Nine Years Ago
Principal Property Taxpayers
218
CITY OF RANCHO CUCAMONGA
Property Tax Levies and Collections
Last Ten Fiscal Years
Taxes Levied Collections in
for the Received Percent Subsequent Percent
Fiscal Year Amount of Levy Years1 Amount of Levy
95,016,035$ 93,063,071$ 97.94%N/A 93,063,071$ 97.94%
100,428,866 98,457,115 98.04%N/A 98,457,115 98.04%
105,120,614 103,112,427 98.09%N/A 103,112,427 98.09%
108,069,418 107,991,619 99.93%N/A 107,991,619 99.93%
112,950,393 114,778,741 101.62%N/A 114,778,741 101.62%
119,970,594 122,206,002 101.86%N/A 122,206,002 101.86%
126,916,757 128,333,882 101.12%N/A 128,333,882 101.12%
136,728,688 135,393,834 99.02%N/A 135,393,834 99.02%
142,994,120 143,427,161 100.30%N/A 143,427,161 100.30%
156,800,460 162,808,003 103.83%N/A 162,808,003 103.83%
Note:
1
Source: San Bernardino County Auditor-Controller/Treasurer/Tax Collector
Collected within the
Fiscal Year of Levy Total Collections to Date
June 30
Year Ended
Fiscal
2014
2023
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.
2019
2018
2017
2016
2015
2022
2021
2020
219
Current Year and Nine Years Ago
2023 2014
Business Name Business Category Business Name Business Category
Amazon.com Services Fulfillment Centers Apple Electronics/Appliance Stores
Apple Electronics/Appliance Stores Bass Pro Shops Outdoor World Sporting Goods/Bike Stores
Bass Pro Shops Outdoor World Sporting Goods/Bike Stores Best Buy Electronics/Appliance Stores
Best Buy Electronics/Appliance Stores Chevron Service Stations
Chevron Service Stations Circle K Service Stations
Circle K Service Stations Circle K 76 Service Stations
Costco Discount Department Stores Costco Discount Department Stores
Floor & Décor Outlets of America Building Materials Day Creek Arco Service Stations
Home Depot Building Materials Day Creek Shell Service Stations
Huttig Building Materials Haven Mobil Service Stations
ICL Performance Products Drugs/Chemicals Home Depot Lumber/Building Materials
Living Spaces Furniture Home Furnishings JC Penney Department Stores
Lowes Building Materials Living Spaces Furniture Home Furnishings
Macy's Department Stores Lowes Lumber/Building Materials
My Goods Market Service Stations Macys Department Stores
Parallon Supply Chain Solutions Medical/Biotech Monoprice Fulfillment Centers
Ralphs Grocery Stores NIC Partners Electrical Equipment
Schwarz Paper Company Light Industrial/Printers Ralphs Grocery Stores
Shell Service Stations Ralphs Grocery Stores
Stater Bros Grocery Stores Ross Family Apparel
Target Discount Department Stores Sears Department Stores
Tesla Motors New Motor Vehicle Dealers Target Discount Department Stores
Total Wine & More Convenience Stores/Liquor Tesoro Refining & Marketing Service Stations
Walmart Discount Department Stores Walmart Discount Department Stores
Walters Wholesale Electric Plumbing/Electrical Supplies Walters Wholesale Electric Plumbing/Electrical Supplies
1 Firms listed alphabetically
CITY OF RANCHO CUCAMONGA
Principal Sales Tax Remitters 1
220
Fiscal Year Total Lease Total Total Percentage Debt
Ended Governmental Revenue Business-type Primary of Personal Per
June 30 Leases Subscriptions Activities Bonds Activities Government Income 1 Capita 1
2014 2,083,890$ -$ 2,083,890$ -$ -$ 2,083,890$ 0.04%12
2015 1,564,076 - 1,564,076 - - 1,564,076 0.03%9
2016 1,034,303 - 1,034,303 - - 1,034,303 0.02%6
2017 486,229 - 486,229 - - 486,229 0.01%3
2018 - - - - - - 0.00%-
2019 1,919,173 - 1,919,173 13,555,938 13,555,938 15,475,111 0.27%86
2020 1,465,999 - 1,465,999 13,179,158 13,179,158 14,645,157 0.24%83
2021 995,689 - 995,689 12,687,378 12,687,378 13,683,067 0.22%78
2022 695,833 - 695,833 - - 695,833 0.01%4
2023 151,701 2,632,400 2,784,101 - - 2,784,101 0.04%16
Notes:
Details regarding the City's outstanding debt can be found in the notes to financial statements
1 This ratio is calculated using personal income and population for the prior calendar year.
Governmental Activities Business-type Activities
CITY OF RANCHO CUCAMONGA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
221
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
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%-
2023 - - - 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).
1 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.
Outstanding General Bonded Debt
CITY OF RANCHO CUCAMONGA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
222
City Net Taxable Assessed Value 32,966,497,484$ 2
City
Percentage Total Share of
Applicable 1 Debt 6/30/23 Debt
Overlapping Tax and Assessment Debt:
Metropolitan Water District 0.906%19,215,000$ 174,088$
Chaffey Community College District 22.233%290,030,000 64,482,370
Chaffey Union High School District 41.923%600,532,563 251,761,266
Alta Loma School District 98.900%55,603,304 54,991,668
Central School District 98.093%73,572,479 72,169,452
Cucamonga School District Community Facilities District No. 97-1 100.000%3,700,000 3,700,000
Etiwanda School District 69.160%104,723,083 72,426,484
Etiwanda School District CFD No. 7 25.417%6,650,000 1,690,231
Etiwanda School District CFD No. 8 64.507%3,720,000 2,399,660
Etiwanda School District CFD No. 9 69.668%6,495,000 4,524,937
Etiwanda School District CFD Nos. 2004-2, 2007-1, 2018-1 100.000%20,150,000 20,150,000
Etiwanda School District Rancho Etiwanda Public Facilities
Authority CFD No. 1 100.000%#8,955,000 8,955,000
Fontana Unified School District 0.503%264,519,841 1,330,535
Upland Unified School District 0.116%81,880,003 94,981
City of Rancho Cucamonga CFDs 100.000%53,587,000 53,587,000
City of Rancho Cucamonga 1915 Act Bonds 100.000%- -
Total overlapping tax and assessment debt 1,593,333,273 612,437,672
Direct and Overlapping General Fund Debt
San Bernardino County General Fund Obligations 11.347%160,860,000 18,252,784
San Bernardino County Pension Obligation Bonds 11.347%62,960,000 7,144,071
San Bernardino County Flood Control District General Fund Obligations 11.347%41,065,000 4,659,646
Chaffey Community College District General Fund Obligations 22.233%25,815,000 5,739,449
Cucamonga School District Certificates of Participation 41.777%2,616,000 1,092,886
Fontana Unified School District Certificates of Participation 0.503%18,865,000 94,891
West Valley Vector Control District Certificates of Participation 30.953%1,682,042 520,642
Total direct and overlapping general fund debt 313,863,042 37,504,369
Overlapping Tax Increment Debt (Successor Agency)100.000%210,840,000 210,840,000
Total overlapping debt 2,118,036,315$ 860,782,041$
City direct debt 2,784,101
Total direct and overlapping debt 3 863,566,142$
Notes:
1
2
3
Source: California Municipal Statistics, HdL Coren & Cone
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.
CITY OF RANCHO CUCAMONGA
Direct and Overlapping Debt
June 30, 2023
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.
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.
223
2023 2022 2021 2020
Debt limit 1,236,243,656$ 1,137,989,277$ 1,084,361,716$ 1,036,588,356$
Total net debt applicable to limit - - - -
Legal debt margin 1,236,243,656$ 1,137,989,277$ 1,084,361,716$ 1,036,588,356$
Total net debt applicable to the limit
as a percentage of debt limit 0.0%0.0%0.0%0.0%
Legal Debt Margin Calculation for Fiscal Year 2022/23:
Net taxable assessed value 32,966,497,484$
Debt limit (3.75% of assessed value)1,236,243,656
Debt applicable to limit:
General obligation bonds -
Legal debt margin 1,236,243,656$
Notes:
Source: California Municipal Statistics, HdL Coren & Cone
Fiscal Year
The Government Code of the State of California provides for a legal debt limit of 15% of gross
assessed valuation. However, this provision was enacted when assessed valuation was based upon
25% of market value. Effective with the Fiscal Year 1981-82, each parcel is now assessed at 100%
of market value (as of the most recent change in ownership for that parcel). Although the statutory
debt limit has not been amended by the State since this change, the percentages presented in the
above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of
this calculation in order to be consistent with the computational effect of the debt limit at the time of
the State's establishment of the limit.
CITY OF RANCHO CUCAMONGA
Legal Debt Margin Information
Last Ten Fiscal Years
224
2019 2018 2017 2016 2015 2014
990,714,408$ 936,104,692$ 890,309,325$ 851,959,538$ 811,437,638$ 758,153,738$
- - - - - -
990,714,408$ 936,104,692$ 890,309,325$ 851,959,538$ 811,437,638$ 758,153,738$
0.0%0.0%0.0%0.0%0.0%0.0%
Fiscal Year
CITY OF RANCHO CUCAMONGA
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
225
Fiscal Year
Ended Tax
June 30,Increment 1 Principal Interest Coverage
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
2023 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.
1 Tax increment figures are net of related pass-through payments.
CITY OF RANCHO CUCAMONGA
Pledged-Revenue Coverage
Last Ten Fiscal Years
(In Thousands)
Tax Allocation Bonds
Debt Service
226
Per
Personal Capita
Income Personal Unemployment
Calendar Population (in thousands)Income Rate
Year (1)(2)(2)(3)
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%
2022 173,545 6,997,396 40,320 3.0%
Sources:(1) California State Department of Finance
(2) U.S. Census Bureau
(3) California Employment Development Department
CITY OF RANCHO CUCAMONGA
Demographic and Economic Statistics
Last Ten Calendar Years
227
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228
Percent of Percent of
Number of Total Number of Total
Employer Employees1 Rank Employment Employees1 Rank Employment
Inland Empire Health Plan (IEHP)3,511 1 3.70%850 5 1.17%
Chaffey Community College 1,619 2 1.70%1,229 1 1.69%
Etiwanda School District 1,854 3 1.95%1,058 2 1.45%
Frito-Lay 950 4 1.00%n/a n/a n/a
Majestic Terminal Services, Inc.684 5 0.72%n/a n/a n/a
City of Rancho Cucamonga 662 6 0.70%858 4 1.18%
Amphastar Pharmaceutical 641 7 0.67%880 3 1.21%
Central School District 591 8 0.62%527 6 0.72%
National Community Renaissance Of California 550 9 0.58%n/a n/a n/a
Reyes Coca Cola Bottling, LLC 453 10 0.48%n/a n/a n/a
Kindred Hospital Rancho 305 11 0.32%n/a n/a n/a
Bass Pro Shops Outdoor World 338 12 0.36%n/a n/a n/a
Evolution Fresh 279 13 0.29%n/a n/a n/a
Note: "Total Employment" as used above represents the total employment of all employers located within City limits.
1 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".
Source: ESRI, Infogroup, HdL, Economic and Community Development Department
CITY OF RANCHO CUCAMONGA
Principal Employers
Current Year and Nine Years Ago
2023 2014
229
2023 2022 2021 2020 2019 2018
Function
General Government 96 86 86 86 88 91
Public Safety 1,2 167 154 157 147 180 175
Engineering and Public Works 168 154 169 171 191 192
Community Development 43 37 39 38 36 41
Community Services 3 221 129 87 71 325 366
Total 695 560 538 513 820 865
NOTES:
1
2 Includes Fire Protection and Animal Center
3 Includes Community Services and Library Services
Source: City Finance Department
Police services are provided by a contract with the San Bernardino County Sheriff's Department which provided
143 sworn and 43 non-sworn employees for 2023.
CITY OF RANCHO CUCAMONGA
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Fiscal Year
230
2017 2016 2015 2014
90 93 86 86
175 165 159 145
204 208 214 193
42 42 42 46
371 347 348 389
882 855 849 859
Last Ten Fiscal Years
by Function
Full-time and Part-time City Employees (Continued)
CITY OF RANCHO CUCAMONGA
Fiscal Year
231
2023 2022 2021 2020 2019
General government:
Building permits issued 1 5,692 5,010 4,976 4,196 4,679
Building inspections conducted 12,932 12,291 13,422 13,136 14,236
Police:
Arrests
2 2,756 3,793 3,531 3,947 4,762
Parking citations issued 2 5,264 3,709 4,275 2,840 8,693
Traffic citations issued 2 7,016 7,164 9,308 15,050 14,082
Fire:
Number of emergency calls 18,205 18,250 16,907 16,545 15,861
Inspections 5,223 5,259 4,308 5,080 4,071
Public works:
Number of potholes repaired 6,282 4,881 3,419 4,866 5,784
Parks and recreation:
Number of recreation classes 985 788 422 2,684 2,483
Number of program registrations 16,475 8,085 3,577 27,763 33,511
Number of facility rentals 860 318 353 2,241 4,100
Library:
Volumes in collection 243,157 269,027 259,622 226,580 274,993
Total volumes borrowed 502,260 479,395 326,345 754,690 987,448
Municipal utility:
Number of customers 2,979 2,503 2,126 1,744 1,247
Peak demand (MW)25 22 19 18 18
Notes:
1
2 Data for the months of July 2023 - April 2023 not available due to countywide system disruption.
Source: Various City departments
Effective Fiscal Year 2015, building permits are segregated into more detailed subcategories resulting in a
higher total count than prior years.
Fiscal Year
CITY OF RANCHO CUCAMONGA
Operating Indicators
by Function
Last Ten Fiscal Years
232
2018 2017 2016 2015 2014
4,173 4,061 4,891 5,126 2,989
12,897 12,718 17,118 18,326 19,451
3,027 4,442 4,968 4,534 4,497
6,438 6,354 5,151 5,946 5,603
9,742 10,881 18,056 18,935 13,569
16,762 15,670 15,158 14,212 13,674
2,277 2,294 2,162 1,758 2,206
3,060 3,701 3,423 3,284 2,030
5,350 5,055 6,048 6,865 6,688
24,278 25,912 30,648 35,477 41,807
3,980 2,703 2,069 2,424 1,536
300,462 295,619 302,689 314,390 310,896
898,037 985,474 1,085,020 1,067,070 1,069,335
945 899 896 887 686
18 17 17 17 17
Fiscal Year
CITY OF RANCHO CUCAMONGA
Operating Indicators (Continued)
by Function
Last Ten Fiscal Years
233
2023 2022 2021 2020 2019 2018
Police:
Stations 1 1 1 1 1 1
Patrol units 67 67 63 67 67 65
Fire:
Fire stations 7 7 7 7 7 7
Public works:
Streets (miles)538 538 537 537 533 532
Streetlights 17,074 17,074 17,019 17,027 16,950 16,721
Traffic signals 239 239 238 238 238 235
Parks and recreation:
Parks 30 30 30 30 30 30
Acreage 346 346 346 346 346 346
Community centers 6 6 6 6 6 6
Source: Various City departments
Fiscal Year
CITY OF RANCHO CUCAMONGA
Capital Asset Statistics
by Function
Last Ten Fiscal Years
234
2017 2016 2015 2014
1 1 1 1
65 63 63 60
7 7 7 7
532 532 531 524
16,792 16,744 16,669 16,334
226 224 222 220
30 29 29 29
346 343 343 343
6 6 6 6
Fiscal Year
CITY OF RANCHO CUCAMONGA
Capital Asset Statistics (Continued)
by Function
Last Ten Fiscal Years
235
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236