HomeMy WebLinkAbout2022-04-27- Agenda Packet - Community Parks and Landscape Oversight Committee heal; 4,4
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rcr CITY OF RANCHO CUCAMONGA
41P•r APRIL 27, 2022
COMMUNITY PARKS & LANDSCAPE
CITIZENS' OVERSIGHT COMMITTEE AGENDA
RANCHO CUCAMONGA CITY HALL, TRI-COMMUNITIES ROOM
10500 CIVIC CENTER DRIVE
RANCHO CUCAMONGA, CA 91730
A. CALL TO ORDER - 7:00 PM
Al. Pledge of Allegiance
A2. Roll Call
B. PUBLIC COMMUNICATIONS
This is the time and place for the general public to address the Community Parks&Landscape
Citizens' Oversight Committee on any item listed or not listed on the agenda. State law
prohibits the Committee from addressing any issue not previously included on the Agenda.
The Committee may receive testimony and set the matter for a subsequent meeting.
Comments are to be limited to five minutes per individual.
C. ITEM S FOR DISCUSSION
Cl. Oath of Office for Committee Members: Denise Garzaro, Pascal Pangestu, and Matthew
Parmental
C2. Election of Committee Chair and Vice-Chair
C3. Consideration of Meeting Minutes: February 10, 2021
C4. Overview of Committee Role and Special Districts
C5. Review and Discussion of Annual Independent Auditors' Report with City's Auditors
C6. Review and Approval of Annual Written Report to the City Council
C7. Staff updates for the Committee
D. ADJOURNMENT
I, Melanie Morris, Executive Assistant of the City of Rancho Cucamonga, hereby certifies that a true,
accurate copy of the foregoing agenda was posted on April 21, 2022, at 5:30 PM per Government Code
Section 54954.2 at 10500 Civic Center Dr, Rancho Cucamonga, CA 91730.
Melanie Morris
CITY OF RANCHO CUCAMONGA
February 10, 2021
COMMUNITY PARKS AND LANDSCAPE CITIZENS' OVERSIGHT COMMITTEE
MEETING MINUTES
A. CALL TO ORDER-- 6:05 PM
The Regular meeting of the Community Parks and Landscape Citizens' Oversight Committee was
scheduled on Wednesday, February 10, 2021, remotely via teleconference by dialing (669) 900-
6833, meeting code 897-9591-7787, or electronically via https://zoom us using meeting code 897-
9591-7787.
Al. Pledge of Allegiance:
Committee Member Greer led the Pledge of Allegiance.
A2. Roll Call:
Present Committee Members: David DeMauro, Jaime Garcia, Denise Garzaro, Velma
Gilbert, Otis Greer, April McAllaster, Lisa Morgan-Perales, and Dave Terry
Staff Present: Tamara Layne, Finance Director; Bill Wittkopf, Public Works Services
Director; Noah Daniels, Finance Manager; Kelly Guerra, Special Districts Analyst; and
City Auditor—Audit Manager, Kirk Hamblin.
A3. Approval of Minutes: April 14, 2020
Committee Member Greer motioned to approve the minutes from the meetings of April 14,
2020. The motion was seconded by Committee Member DeMauro and was unanimously
approved.
IB. PUBLIC COMMUNICATIONS
Bl. No public communications were made.
IC. ITEM(S) OF DISCUSSION a
Cl. Review and Discussion of Annual Independent Auditors' Report
City Auditor Hamblin provided information about the purpose of the letters and financial
report, the role of the auditor, audit procedures, and the audit results to the Committee. A
discussion ensued regarding the uses of funds and the purpose of specific accounts. City
Staff provided information to the specific questions related to the wind events. The
Committee Members closed the item after the discussion.
C2. Review and Approval of Annual Written Report to the City Council
A discussion concerning the draft report to City Council ensued. Committee Member Terry
motioned to approve the Annual Report to the City Council. The motion was seconded by
Committee Member McAllaster and was unanimously approved.
Chair Garcia agreed to present the report to the City Council and Finance Manager
Daniels to follow up with instructions to provide the report remotely.
COMMUNITY PARKS AND LANDSCAPE CITIZENS' OVERSIGHT COMMITTEE MEETING MINUTES
FEBRUARY 10, 2021
PAGE 2
C3. Community Parks and Landscape Citizens' Oversight Committee Updates
Committee Members discussed various topics, such as deferred maintenance at the parks
and the financial and operational impacts of the wind event. Public Works Director Wittkopf
provided information on those items and a progress report on drought-tolerant landscaping
in LMDs 2 and 4R.
Committee Members presented ideas for future items to discuss further, including possible
future Committee public outreach activities and engagements. However, the Committee
preferred to meet in person since a remote discussion didn't appear to be an appropriate
format for a collaborative discussion.
C4. Election of Committee Chair and Vice-Chair
Committee Member Garcia accepted the Chair, and Committee Member Garzaro
accepted the Vice-Chair. Committee Member DeMauro motioned to approve. Committee
Member Morgan-Perales seconded and was unanimously approved.
ID. ADJOURNMENT a
Chair Garcia motioned to adjourn the meeting at 7:48 PM.
Respectfully submitted,
Denise Garzaro, Vice-Chair
Date:April 27, 2022
a" au one
rr( (- CITY OF RANCHO CUCAMONGA
DATE: April 27, 2022
TO: Community Parks and Landscape Citizens' Oversight Committee
FROM: Noah Daniels, Finance Director
SUBJECT: SUMMARY OF THE FISCAL YEAR 2020/21 STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE
DISTRICTS.
BACKGROUND:
Established by Resolution No. 19-075, the Community Parks and Landscape Citizens' Oversight
Committee's core purpose is to review the Districts' annual financial audit and report to the City
Council and the community. The Committee accomplishes this task by reviewing the financial
report with City staff and the City's independent auditors, including matters required to be
communicated to the Committee under generally accepted auditing standards.
The purpose of an audit is for the auditor to provide an opinion on whether the financial statements
and disclosures are presented accurately and free from material misstatement. In other words,
the auditor's purpose is to provide a degree of confidence in the financial statements. As the basis
for the auditor's opinion, the auditor must obtain a high level of assurance that the financial
statements are free from a material error by obtaining sufficient audit evidence. Audit evidence
includes both information in accounting records underlying the financial statements and other
information and is measured by quantity and quality.
The Committee has neither budgetary nor operational decision-making authority nor the authority
to allocate financial resources or direct staff.
ANALYSIS:
While the Committee is not directly involved with the audit or the examination of accounting
records, the Committee's responsibility is to provide community oversight of the financial reporting
process. At the meeting, dialogue with the auditors and City staff is encouraged to learn more
about the audit process and preparation of the financial reports.
The City's independent auditors, Lance Soil & Lunghard, LLP, have completed their annual audit
of the Districts'financial statements. Attached you will find the following reports for your reference:
• The required Auditor's Communication with Those Charged with Governance— This letter
communicates the auditor's responsibilities and information regarding the audit
• Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters — This letter communicates the auditor's evaluation of the
City's internal controls over financial reporting.
Page 1 of 9
• The Districts' Statement of Revenues, Expenditures and Changes in Fund Balances for
the Fiscal Year Ended June 30, 2021 — This report provides detailed financial information
and disclosures that indicate the Districts' financial condition. It covers the fiscal period
between July 1, 2020, to June 30, 2021. The City received an unqualified, or "clean",
opinion on the presentation of its financial statements.
Staff Analysis: The Statement of Revenues, Expenditures and Changes in Fund Balances for the
Fiscal Year Ended June 30, 2021, report the Districts' operating results. In summary, the Districts
reported positive changes in fund balance for the reporting period, and the following are some
highlights to accompany the report:
Landscape Maintenance District#1 General City
Fiscal Year
Revenues 2021 2020 Change
Taxes $ 1,251,109 $ 1,250,133 $ 976
Charges for services 10,326 9,680 646
Use of money and property 26,907 78,681 (51,774)
General benefit equivalent 33,917 150,800 (116,883)
Contributions from other funds 3,548 - 3,548
Miscellaneous 10,000 - 10,000
Total Revenues $ 1,335,807 $ 1,489,294 $ (153,487)
Fiscal Year
Expenditures 2021 2020 Change
Personnel services $ 26,954 $ 30,329 $ (3,375)
Operations and maintenance 57,647 67,461 (9,814)
Contract services 499,640 517,008 (17,368)
Tree Maintenance 166,770 52,500 114,270
Utilities 380,228 375,109 5,119
Assessment administration 62,850 62,650 200
General overhead allocation 57,340 48,030 9,310
Capital outlay 91,806 313,000 (221,194)
Total Expenditures $ 1,343,235 $ 1,466,087 $ (122,852)
• Revenues from assessments reported as Taxes are relatively unchanged for the current
year, increasing from $1,250,133 to $1,251,109. Assessment rates cannot be increased
due to state law.
• The City Council has approved a General Benefit Equivalent to subsidize operations. In
the current year, the General Benefit Equivalent decreased by $116,883 due to lowering
the subsidy to 3% from 11% in the previous year. The lowered subsidy was in response
to financial and economic uncertainty due to COVID-19.
• Use of Money and Property decreased by $51,774, primarily due to the temporary
adjustment of investments to fair value at the end of the fiscal year and lowered investment
earnings. This decrease was offset by lease income from cell towers. Generally accepted
accounting principles (GAAP) require adjusting to fair value at the end of the fiscal year.
However, these fluctuations in the marketplace only decrease the reporting earnings as
the City's policy is to hold investments to maturity.
Page 2 of 9
• Due to a severe windstorm, Tree Maintenance increased by$114,270 in the current year.
• Staff completed rubberized surface improvements at various parks for $313,000 in the
prior year. In the current year, staff performed studies on sports lighting at Old Town Park
for$5,760 and slope repair at Almond Trail for $86,046.
Landscape Maintenance District#2 Victoria
Fiscal Year
Revenues 2021 2020 Change
Taxes $ 3,738,622 $ 3,569,927 $ 168,695
Charges for services 191 733 (542)
Use of money and property (6,799) 120,124 (126,923)
General benefit contribution 288,082 323,730 (35,648)
Contributions from other funds 8,744 - 8,744
Miscellaneous - 1,605 (1,605)
Total Revenues $ 4,028,840 $ 4,016,119 $ 12,721
Fiscal Year
Expenditures 2021 2020 Change
Personnel services $ 872,442 $ 878,310 $ (5,868)
Operations and maintenance 67,607 62,730 4,877
Contract services 1,316,545 1,125,709 190,836
Tree Maintenance 261,028 157,007 104,021
Utilities 865,041 879,249 (14,208)
Assessment administration 35,080 35,080 -
Interfund allocation 86,230 80,430 5,800
General overhead allocation 324,160 289,680 34,480
Capital outlay 99,450 206,308 (106,858)
Total Expenditures $ 3,927,583 $ 3,714,503 $ 213,080
• Revenues from assessments reported as Taxes are increased for the current year,
increasing from $3,569,927 to $3,738,622. The growth is due to new properties being
annexed into the District. Assessment rates were unchanged from the prior year and are
below the maximum allowable assessment rate.
• Use of Money and Property decreased by $126,923 due to the temporary adjustment of
investments to fair value at the end of the fiscal year and lowered investment earnings.
This resulted in a net loss for the current year. As previously stated, this adjustment is
required by GAAP.
• In the current year, the General Benefit Contribution, the legally required contribution for
general benefit, decreased by $35,648 due to a change in calculation methodology. In
prior years, the transfer was based on budgeted operating expenditures rather than actual
expenditures. The legally required contribution is 8.62% of operating expenditures.
• The City experienced disruption and delays with regular maintenance services for the
primary contract landscapers due to the COVID-19 pandemic during the Fiscal Year
2019/20. As a result, the Contract Services expenditures increased in the current year.
• Due to a severe windstorm, Tree Maintenance increased by $101,000 in the current year.
Page 3of9
• Staff completed rubberized surface improvements at various parks for $127,300, paseo
lighting retrofitting and began a multi-year project drought-tolerant landscaping in the prior
year. In the current year, in addition to$36,130 fora paseo lighting retrofit, staff completed
a roof replacement at Victoria Groves Park for $46,350 and light pool replacements at
Vintage and Elena Parks for$15,400.
Landscape Maintenance District#4R Terra Vista
Fiscal Year
Revenues 2021 2020 Change
Taxes $ 2,797,950 $ 2,808,859 $ (10,909)
Charges for services 61 151 (90)
Use of money and property (7,835) 187,991 (195,826)
Miscellaneous 5,132 - 5,132
Total Revenues $ 2,795,308 $ 2,997,001 $ (201,693)
Fiscal Year
Expenditures 2021 2020 Change
Personnel services $ 946,670 $ 1,009,303 $ (62,633)
Operations and maintenance 76,358 71,276 5,082
Contract services 552,170 351,514 200,656
Tree Maintenance 74,320 71,515 2,805
Utilities 473,423 405,623 67,800
Assessment administration 20,980 20,980 -
General overhead allocation 257,850 235,870 21,980
Capital outlay 176,143 105,691 70,452
Total Expenditures $ 2,577,914 $ 2,271,772 $ 306,142
• Revenues from assessments reported as Taxes are relatively unchanged for the current
year, decreasing from$2,808,859 to$2,797,950.Assessment rates were unchanged from
the prior year and are below the maximum allowable assessment rate.
• Use of Money and Property decreased by $195,826 due to the temporary adjustment of
investments to fair value at the end of the fiscal year and lowered investment earnings.
This resulted in a net loss for the current year. As previously stated, this adjustment is
required by GAAP.
• Personnel Services decreased due to multiple vacancies of Lead Maintenance Workers
during the current year.
• The City experienced disruption and delays with regular maintenance services for the
primary contract landscapers due to the COVID-19 pandemic during the Fiscal Year
2019/20. As a result, the Contract Services expenditures increased in the current year.
• Utilities increased by $67,800 primarily due to water utility costs. Many issues might have
caused this fluctuation, most likely a broken valve or meter. Currently, the utilities are
operating at their expected levels.
• Staff completed rubberized surface improvements at various parks for$47,800 and began
a multi-year project of drought-tolerant landscaping in the prior year. In the current year,
staff completed a fence replacement project at various parks for$175,650.
Page 4 of 9
Landscape Maintenance District#6R Caryn Community
Fiscal Year
Revenues 2021 2020 Change
Taxes $ 539,014 $ 526,748 $ 12,266
Use of money and property (915) 20,681 (21,596)
General benefit equivalent 40,532 43,680 (3,148)
Total Revenues $ 578,631 $ 591,109 $ (12,478)
Fiscal Year
Expenditures 2021 2020 Change
Personnel services $ 18,886 $ 18,447 $ 439
Operations and maintenance 5,135 4,464 671
Contract services 331,852 234,983 96,869
Tree Maintenance 67,980 34,670 33,310
Utilities 155,179 163,425 (8,246)
Assessment administration 6,680 6,680 -
General overhead allocation 40,790 35,510 5,280
Total Expenditures $ 626,502 $ 498,179 $ 128,323
• Revenues from assessments, reported as Taxes, increased for the current year,
increasing from $526,748 to $539,014. Assessment rates increased by 2.25% from the
prior year, approximately the percentage increase in the current year.
• The City Council approved a General Benefit Equivalent as a subsidy for operations,which
decreased slightly by $3,148 due to calculation methodology changes. In prior years, the
transfer was based on budgeted operating expenditures rather than actual expenditures.
• Use of Money and Property decreased by $21,596 due to the temporary adjustment of
investments to fair value at the end of the fiscal year and lowered investment earnings.
This resulted in a net loss for the current year. As previously stated, this adjustment is
required by GAAP.
• The City experienced disruption and delays with regular maintenance services for the
primary contract landscapers due to the COVID-19 pandemic during the Fiscal Year
2019/20. As a result, the Contract Services expenditures increased in the current year.
• Due to a severe windstorm, Tree Maintenance increased by approximately$35,570 in the
current year.
Page 5of9
Landscape Maintenance District#7 North Etiwanda
Fiscal Year
Revenues 2021 2020 Change
Taxes $ 950,482 $ 947,458 $ 3,024
Charges for services 790 3,791 (3,001)
Use of money and property 56,167 94,288 (38,121)
Contributions from other funds 376 - 376
Total Revenues $ 1,007,815 $ 1,045,537 $ (37,722)
Fiscal Year
Expenditures 2021 2020 Change
Personnel services $ 207,008 $ 204,269 $ 2,739
Operations and maintenance 24,333 26,188 (1,855)
Contract services 400,822 358,873 41,949
Tree Maintenance 52,851 15,820 37,031
Utilities 308,700 304,274 4,426
Assessment administration 16,130 16,130 -
General overhead allocation 104,930 93,960 10,970
Total Expenditures $ 1,114,774 $ 1,019,514 $ 95,260
• Revenues from assessments reported as Taxes are relatively unchanged for the current
year, increasing from $947,458 to $950,482. Assessment rates cannot be increased due
to state law.
• Use of Money and Property decreased by $38,121 due to the temporary adjustment of
investments to fair value at the end of the fiscal year and lowered investment earnings.
This resulted in a net loss for the current year. As previously stated, this adjustment is
required by GAAP.
• The City experienced disruption and delays with regular maintenance services for the
primary contract landscapers due to the COVID-19 pandemic during the Fiscal Year
2019/20. As a result, the Contract Services expenditures increased in the current year.
• Due to a severe windstorm, Tree Maintenance increased by approximately$14,760 in the
current year. Additionally, the City did not have a regular contractor for tree services in the
prior year.
Page 6of9
Street Lighting Maintenance District#2 Residential
Fiscal Year
Revenues 2021 2020 Change
Taxes $ 376,337 $ 377,664 $ (1,327)
Use of money and property (14,367) 7,635 (22,002)
General benefit equivalent 251,284 363,500 (112,216)
Contributions from other funds 1,900 - 1,900
Total Revenues $ 615,154 $ 748,799 $ (133,645)
Fiscal Year
Expenditures 2021 2020 Change
Operations and maintenance $ 62,476 $ 90,679 $ (28,203)
Contract services 610 689 (79)
Utilities 284,656 282,997 1,659
Assessment administration 38,080 38,080 -
General overhead allocation 1,920 1,900 20
Capital outlay - 5,480 (5,480)
Debt service 252,176 254,441 (2,265)
Total Expenditures $ 639,918 $ 674,266 $ (34,348)
• Revenues from assessments reported as Taxes are relatively unchanged for the current
year, decreasing from $377,664 to $376,337. Assessment rates cannot be increased due
to state law.
• The City Council has approved a General Benefit Equivalent to subsidize operations. In
prior years, the transfer was based on budgeted operating expenditures rather than actual
expenditures. In the current year, the General Benefit Equivalent decreased by $112,216
due to a change in calculation methodology.
• Use of Money and Property decreased by $22,002 due to the temporary adjustment of
investments to fair value at the end of the fiscal year and lowered investment earnings.
This resulted in a net loss for the current year. As previously stated, this adjustment is
required by GAAP.
• Operations and Maintenance decreased by$28,303 due to fewer streetlight replacements
during the current year. This account fluctuates primarily due to street light replacements,
net of insurance recoveries, during the year.
• Capital Outlay consisted of the remaining acquisition of streetlights from Southern
California Edison in the prior year. The purchase of the streetlight decreased the electrical
rates charged by Southern California Edison. Furthermore, the City advanced proceeds
from the purchase to the various Street Lighting Maintenance Districts, and the
repayments are shown as Debt Service. See Note 4—Advances from City for more detail
on the advance from the City.
Page 7of9
Park and Recreation Improvement District#85
Fiscal Year
Revenues 2021 2020 Change
Taxes $ 1,163,371 $ 1,161,474 $ 1,897
Charges for services 14,947 20,041 (5,094)
Use of money and property 128,455 209,775 (81,320)
General benefit equivalent 49,147 217,060 (167,913)
Contributions from other funds 9,234 - 9,234
Total Revenues $ 1,365,154 $ 1,608,350 $ (243,196)
Fiscal Year
Expenditures 2021 2020 Change
Personnel services $ 144,979 $ 214,726 $ (69,747)
Operations and maintenance 29,762 44,080 $ (14,318)
Contract services 262,036 241,381 20,655
Tree Maintenance 26,102 14,241 11,861
Utilities 258,661 278,514 (19,853)
Assessment administration 144,590 144,590 -
General overhead allocation 54,780 52,650 2,130
Capital outlay 113,204 229,678 (116,474)
Total Expenditures $ 1,034,114 $ 1,219,860 $ (185,746)
• Revenues from assessments reported as Taxes are relatively unchanged for the current
year, increasing from $1,161,474 to $1,163,371. Assessment rates cannot be increased
due to state law.
• The City Council has approved a General Benefit Equivalent to subsidize operations. In
the current year, the General Benefit Equivalent decreased by$167,913. The decrease in
the subsidy consists of two components: 1) the subsidy for operations of Red Hill and
Heritage Parks being lowered to 3% from 11% in the previous year and 2) reduced
operations of the Red Hill Water Feature, which is entirely funded by subsidy. These
changes were in response to financial and economic uncertainty due to COVID-19.
• Use of Money and Property decreased by $81,320 due to the temporary adjustment of
investments to fair value at the end of the fiscal year and lowered investment earnings.
This resulted in a net loss for the current year. As previously stated, this adjustment is
required by GAAP.
• Personnel Services decreased due to multiple vacancies of a Lead Maintenance Worker
and two Maintenance Workers during the current year. Furthermore, Operations and
Maintenance decreased by $14,318 due to the reduction in staff.
• The City experienced disruption and delays with regular maintenance services for the
primary contract landscapers due to the COVID-19 pandemic during the Fiscal Year
2019/20. As a result, the Contract Services expenditures increased in the current year.
• Due to a severe windstorm, Tree Maintenance increased by approximately $6,290 in the
current year.
• Utilities decreased by $19,853 primarily due to water utilities. This was mainly the result
of less frequent usage of the parks by sports groups and cutbacks in watering in the
current year.
Page 8of9
• Staff completed rubberized surface improvements at Red Hill and Heritage Parks for
$205,700 and began studies on the Heritage Bridge Replacement. In the current year,
engineering design services on the Heritage Bridge Replacement continued to amount to
$59,874 and $53,330 for a roof replacement at the snack bar at Heritage Park.
• As a result of budget-balancing measures over the past several years, there has been
growth in the fund balance of PD-85. However, the fund balance is still closely monitored.
Due to these service reductions and contributions from the City, a capital replacement
reserve for emergency repairs and long-term capital maintenance is being established.
However, at the rate at which these reserves grow, a significant capital expenditure, such
as the Heritage Park Bridge Replacement Project, will significantly deplete the capital
reserves.
Page 9of9
Ls
December 10, 2021
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
We have audited the statement of revenues, expenditures and changes in fund balances of Landscape
Maintenance Districts #1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and
#7 North Etiwanda, Street Lighting Maintenance District #2 Residential, and Park and Recreation
Improvement District#85 (collectively,the Districts)of the City of Rancho Cucamonga, California(the City),
for the year ended June 30, 2021. Professional standards require that we provide you with information
about our responsibilities under generally accepted auditing standards, Government Auditing Standards
and the Uniform Guidance, as well as certain information related to the planned scope and timing of our
audit. We have communicated such information in our letter to the City Council of the City of Rancho
Cucamonga dated July 15, 2021. Professional standards also require that we communicate to you the
following information related to our audit.
Significant Audit Findings and Other Issues
Qualitative Aspects of Significant Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Districts are described in the notes to statement of revenues, expenditures
and changes in fund balances. No new accounting policies were adopted and the application of existing
policies was not changed during Fiscal Year 2020/21.We noted no transactions entered into by the Districts
during the year for which there is a lack of authoritative guidance or consensus. All significant transactions
have been recognized in the financial statements in the proper period.
The statement of revenues, expenditures and changes in fund balances disclosures are neutral,consistent,
and clear.
Significant Unusual Transactions
Management is responsible for the policies and practices used to account for significant unusual
transactions. No significant unusual transactions have occurred during Fiscal Year 2020/21.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management. No
misstatements were found.
- PrimeGlobal
Lance,Soli&Lunghard,LIP 203 N.Brea Blvd.,Suite 203 I Brea,CA 92821 I Phone:714.672.0022
0060
00
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
Disagreements with Management
For purposes of this letter,a disagreement with management is a financial accounting, reporting,or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the statement of revenues,
expenditures and changes in fund balances or the auditor's report. We are pleased to report that no such
disagreements arose during the course of our audit.
Circumstances that Affect the Form and Content of the Auditor's Report
New auditing standards were implemented in Fiscal Year 2020/21 related to Statement of Auditing
Standards 134,Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the
Audit of Financial Statements, through Statement of Auditing Standards 140, Supplementary Information
in Relation to the Financial Statements as a Whole. These standards updated the form and content of the
statement of revenues, expenditures and changes in fund balances auditor's report. The purpose of the
change was to present an easier format for users to understand the results of the audit and management's
responsibilities.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 10, 2021.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application
of an accounting principle to the Districts' statement of revenues, expenditures and changes in fund
balances or a determination of the type of auditor's opinion that may be expressed on those statements,
our professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with other
accountants.
Other Audit Findings or Issues Discussed with Management
We generally discuss a variety of matters, including the significant events or transactions that occurred
during the year, business conditions affecting the Districts and business plans and strategies that may affect
the risks of material misstatements, the application of accounting principles and auditing standards, with
management each year prior to retention as the City's auditors. However, these discussions occurred in
the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for
Fiscal Year 2020/21 audit:
GASB Statement No. 84, Fiduciary Activities.
GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement Nos. 14
and 61.
0060
00
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
The following GASB pronouncements are effective in the following fiscal years' audits and should be
reviewed for proper implementation by management:
Fiscal Year 2021/22
GASB Statement No. 87, Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period.
GASB Statement No.97, Certain Component Unit Criteria, and Accounting and Financial Reporting
for Internal Revenue Code Section 457 Deferred Compensation Plans.
Fiscal Year 2022/23
GASB Statement No. 91, Conduit Debt Obligations.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangement.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements.
Restriction on Use
This information is intended solely for the use of Community Parks and Landscape Citizens' Oversight
Committee and management of the Districts and is not intended to be, and should not be, used by anyone
other than these specified parties.
Very truly yours,
eget ,11.1
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Brea, California
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IIIII 711 F17.I,717)7IE EII.,,..„1.,E
STATEMENT OF REVENUES, EXPENDITURES
YEAR ENDED JUNE 30, 2021
AND CHANGES IN FUND BALANCES
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LANDSCAPE MAINTENANCE DISTRICTS
#1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA,
#6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA,
STREET LIGHTING MAINTENANCE DISTRICT#2 RESIDENTIAL,
AND PARK AND RECREATION IMPROVEMENT DISTRICT#85
CITY OF RANCHO CUCAMONGA, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2021
LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2VICTORIA,
#4R TERRA VISTA, #6RCARYN COMMUNITY, AND #7 NORTH ET|VVANDA.
STREET LIGHTING MAINTENANCE DISTRICT#2 RESIDENTIAL, AND
PARK AND RECREATION IMPROVEMENT DISTRICT#85
CITY OF RANCHO CUCAK4ONGA. CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES |N FUND BALANCES
YEAR ENDED JUNE30. 2O21
TABLE OF CONTENTS
Page
Number
|NOEPENDENTAUD|TORS' REPDRT 1
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
|N FUND BALANCES 3
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
|N FUND BALANCES 5
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|NOEPENDENTAUD|TDRS' REPORT
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
Report on the statement of revenues, expenditures and changes in fund balances
Opinions
We have audited the accompanying statement of revenues, expenditures and changes in fund balances of
the Landscape Maintenance Districts#1 General City,#2 Victoria, #4R Terra Vista,#6R Caryn Community,
and #7 North Eiivvanda, Street Lighting Maintenance Diotriot #2 Residential, and Park and Recreation
Improvement District#85 (collectively, the Districts) of the City of Rancho Cucamonga (the City) as of and
for the year ended June 30. 2021. and the related notes to statement of revenuea, expenditures and
changes in fund balances, aa listed in the table ofcontents.
In our opinion, the statement ofrevenues, expenditures and changes in fund balances referred to above
present fairly, in all material respects, the respective financial position of the revenues, expenditures and
changes in fund balances of the Districts of the City, as of June 30, 2021, 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; and the State
Controller's Minimum Audit Requirements for California Special Districts. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Statement of Revenues,
Expenditures and Changes in Fund Balances section of our report. VVm are required tVbm independent of
the Districts and to meet our other ethical reaponsibi|itims, in accordance with the relevant ethical
requirements relating to our audit. VVe believe that the audit evidence vvm have obtained ie sufficient and
appropriate to provide a basis for our audit opinion.
Management's Responsibility for the Statement of Revenues, Expenditures and Changes in Fund
Balances
Management is responsible for the preparation and fair presentation of the statement of navenuea,
expenditures and changes in fund balances in accordance with accounting principles generally accepted
in the United States of America; and for the dmsign, imp|ementadon, and maintenance of internal control
relevant to the preparation and fair presentation of the statement of revenues, expenditures and changes
in fund balances that are free from material miaetatement, whether due iofraud or error.
In preparing the statement ofrevenues, expenditures and changes in fund ba|unces, management is
required to evaluate whether there are conditions or events, considered in the aQgregmtm. that raise
substantial doubt about the Districts' ability to continue as a going concern for twelve months beyond the
date of the statement of revenues, expenditures and changes in fund balances.
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To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
Auditor's Responsibilities for the Audit of the Statement of Revenues, Expenditures and Changes
in Fund Balances
Our objectives are to obtain reasonable assurance about whether the statement of revenues, expenditures
and changes in fund balances as avvho|o are free from material minstabamont, whether due hofraud or
orvor, and to issue an auditor's report that includes our opinion. Reasonable assurance is o high |mvu| of
assurance but is not absolute assurance and therefore in not guarantee that an audit conducted in
accordance with the GAAS and Government ,Auditing Standards will always detect o 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 oo||ueion, forgery, intentional omiooiono,
miarepreoentahona, or the override of internal control. Misstatements are considered material if, there is a
substantial likelihood that, individually or in the aOgragate, they vvnu|d influence the judgment made by e
reasonable user based on the statement of revenues, expenditures and changes in fund balances.
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 aooeeo the risks of material misstatement of the statement of revenuea, expenditures
and changes in fund ba|anoea, whether due to fraud or error, and design and perform audit
procedures responsive to those risks. Such procedures include examining, on a tout baaia,
evidence regarding the amounts and disclosures in the statement of revenues, expenditures and
changes in fund balances.
° Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate to the oiroumatunoen, but not for the purpose of expressing an opinion on the
effectiveness of the City'a internal control. Accordingly, no such opinion iaexpressed.
* 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
statement of revenues, expenditures and changes in fund balances.
° Conclude vvhmthor, in our judgment, therm are conditions or evontn, considered in the aggrogato,
that raise substantial doubt about the District's ability to continue as a going concern for a
reasonable period oftime.
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 vve identified during the audit.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing S/undmndo, we have also issued our report doted
December 10, 2021, on our consideration of the City's internal control over financial reporting and on our
tests of its compliance with certain provisions of |avva, regu|ationa, oontrante, 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 ofthat testing, and not 10 provide an opinion onthe
effectiveness of the City's internal control over financial reporting or on compliance.That report is an integral
part ofan audit performed in accordance with Government Auditing Standards in considering the City'n
internal control over financial reporting and compliance.
Brea, California
December 1O. 2O21
2
LANDSCAPE MAINTENANCE DISTRICTS#1 GENERAL CITY,#3 VICTORIA,#4R TERRA VISTA,
#VRCARYN COMMUNITY,AND#r NORTH ET|VVANDA. STREET LIGHTING MAINTENANCE DISTRICT#uRESIDENTIAL,
AND PARK AND RECREATION IMPROVEMENT DISTRICT#V5
CITY OpRANCHO CUCAmOwGA
STATEMENT Op REVENUES, EXPENDITURES AND CHANGES |m FUND BALANCES
YEAR ENDED JVws3o.ono1
Landscape
Landscape Landscape Landscape Maintenance
Maintenance Maintenance Maintenance District#6R
District#1 District#3 Dist,iou#4R Ca,yn
General City Victoria Terra Vista Community
Revenues:
Taxes 1.251.109 $ 3.730.622 $ 2.797.950 $ 589.014
Charges for services 10.820 191 61 '
Use of money and property 20.907 (0.799) (7.835) (915)
Contributions from General Fund:
General benefit contribution ' 200.002 ' '
General benefit equivalent 33.817 40.582
Contributions from other funds 3.540 0.744
Miscellaneous 10.000 5.182
Total Revenues 1.335.807 4.038.840 3.785.300 e78.631
Expenditures:
Personnel services 26.954 072.442 940.670 18.886
Operating costs:
Operations and maintenance 57.647 87.007 70.350 5.135
Contract services 499.640 1.310.545 552.170 331.052
Tree maintenance 160.770 281.020 74.320 07.980
Utilities 380.228 805.041 473.423 155.179
Assessment administration 82.850 35.080 20.900 0.080
|m*rfundoUnoation 86.238
General overhead allocation 57.340 324.160 257.850 40.730
Capital outlay 91.000 99.450 170.143
Debt service:
Principal retirement '
Interest and fiscal charges
Total Expenditures 1.343,235 3.937583 3.e77,914 636e02
Net Change in Fund Balances (7.428) 101.257 217.894 (47.871)
Fund Be|anoon. Beginning of Year,
am originally reported 1.822.334 4.549.503 7.325.300 771.109
Fund Balances, End nfYear $ 1.814.808 $ 4.6e0.840 7.542.684 $ 723.280
See Notes to Statement of Revenues, Expenditures and Changes in Fund Balances
3
LANDSCAPE MAINTENANCE DISTRICTS#1 GENERAL CITY,#3 VICTORIA,#4R TERRA VISTA,
#VRCARYN COMMUNITY,AND#r NORTH ET|VVANDA. STREET LIGHTING MAINTENANCE DISTRICT#uRESIDENTIAL,
AND PARK AND RECREATION IMPROVEMENT DISTRICT#V5
CITY OpRANCHO CUCAmOwGA
STATEMENT Op REVENUES, EXPENDITURES AND CHANGES |m FUND BALANCES
YEAR ENDED JVws3o.ono1
Landscape Street Lighting Park and
Maintenance Maintenance Recreation
District#7 District#2 Improvement
NorthEdwanda Residential District#05
Revenues:
Taxes $ 950.402 $ 370.337 1.163.371
Charges for services 790 ' 14.947
Use uf money and property 50.107 (14.307) 128.455
Contributions from General Fund:
General benefit contribution ' ' '
General benefit equivalent 251.284 49.147
Contributions from other funds 375 1.900 9.234
Miscellaneous
Total Revenues 1.007.015 615.154 1.365.154
Expenditures:
Personnel services 207.000 144.979
Operating costs:
Operations and maintenance 24.333 02.470 29.702
Contract services 400.822 010 202.030
Tree maintenance 52.851 20.102
Utilities 308.700 284.056 258.001
Assessment administration 10.130 38.000 144.590
|ntorfundoUooation
General overhead allocation 104.930 1.920 54.780
Capital outlay 113.204
Debt service:
Principal retirement 210.188
Interest and fiscal charges 35.900
Total Expenditures 1.114.774 038.818 1.034.114
Net Change in Fund Balances (100.858) (24.704) 331.040
Fund Be|annon. Beginning of Year,
an originally reported 1.420.308 1.042.790 2.808.348
Fund Balances, End nfYear $ 1.813.429 $ 1.018.033 $ 3.181.388
See Notes to Statement of Revenues, Expenditures and Changes in Fund Balances
4
LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2VICTORIA,
#4RTERRA VISTA, #8FlCARYN COMMUNITY, AND#7 NORTH ET|VVANDA.
STREET LIGHTING MAINTENANCE DISTRICT#2 REG|OENT|#L, AND
PARK AND RECREATION IMPROVEMENT DISTRICT#85
CITY OFRANCHO CUCAK8ONG/k' CAL|F(3RN|A
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES |N FUND BALANCES
FOR THE YEAR ENDED JUNE30' 2O21
Note1: Description of the Reporting Entity
The City of Rancho Cucamonga was incorporated on November 30, 1977, under the laws of the
State ofCalifornia and enjoys all the rights and privileges applicable toa General Law City. It is
governed byon elected five-member board.
The City of Rancho Cucamonga, California, has formed certain maintenance districts
and authorized the levy of assessments pursuant to the terms and provisions of the
"Landscaping and Lighting Act of1072." being Division 15. Part 2of the Streets and Highways
Code of the State of California (commencing with Section 22500). The City levies annual
assessments to finance the costs and expenses necessary for maintenance and improvements
in each assessment district.
The City cannot levy and collect annual assessments within an assessment district without
complying with the procedures specified in the Landscaping and Lighting Act of1972, On an
annual basis, an Engineer's Report must be prepared for each uooeoamen< district which
contains a full and detailed description of the improvements and the proposed assessments upon
assessable lots and parcels of land within the district.
The City Council must also adopt o resolution nf intention which:
^ Declares the intention of the City Council to levy and collect assessments within the
assessment district for the fiscal year stated therein.
~ GeneraUy, describes the existing and proposed improvements and any substantial
changes proposed tobe made in existing improvements.
^ Refers to the assessment district by its distinctive designation and indicates the general
location of the district.
^ Refers to the Engineer's Report for a full and detailed description of the improvements,
the boundaries of the assessment district and any zones thmrnin, and the proposed
assessments upon assessable lots and parcels of land within the district.
^ Gives notice of the time and place for public hearing by the City Council on the levy of
the proposed assessment.
^ States whether the assessment is proposed to increase from the previous year.
The improvements for the districts include, but are not limited to turf,ground cover, planter beds,
ehrubn, plants and trees, landscape |ighting, irrigation ayetema, electrical energy for irrigation
oontroUeno, hardooapae, entry signs, sound vvaUe, and all associated appurtenant facilities. A
description of the specific improvements to be maintained and serviced within each assessment
district is set forth in the Annual Engineer's Report. Maintenance may include the furnishing of
services and materials for the ordinary and usual maintenance, operation, and servicing of any
impnovnmont, including nmpair, nomova|, or replacement of all or any part ofany improvement;
providing for the |ifo, growth, hoo|th, and beauty of landscaping, including ou|tivadnn, irrigation,
thmming, spraying,fertilizing,or treating for disease orinjury;the removal oftrimmings, rubbinh,
dobris, and other solid wmnho; the o|maning, nandb|asting, and painting of walls and other
5
LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2VICTORIA,
#4RTERRA VISTA, #8FlCARYN COMMUNITY, AND#7 NORTH ET|VVANDA.
STREET LIGHTING MAINTENANCE DISTRICT#2 REG|OENT|#L, AND
PARK AND RECREATION IMPROVEMENT DISTRICT#85
CITY OFRANCHO CUCAK8ONG/k' CAL|F(3RN|A
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES |N FUND BALANCES
FOR THE YEAR ENDED JUNE30' 2O21
Note1: Description of the Reporting Entity (Continued)
impnovmmentsto remove or cover graffiti. Service may include the furnishing of electric current or
energy, gas, or other illuminating agent for the lighting or operation of any improvements, and
water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of
any other improvements.
The accompanying statement of revenues,expenditures and changes in fund balances contains
information relative only to the Landscape Maintenance Dintriote #1 General City, #2Viotorio.
#4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda, Street Lighting Maintenance
District #2 Residential, and Park and Recreation Improvement District #85 of the City of
Rancho Cucamonga, which are an integral part of the City of Rancho Cucamonga.
Landscape Maintenance District No.1 General City(LMD 1)was formed in 1979 and consists
ofO.395 single family homes, 10.282 multi-family units, and 8.83 uonas of vacant |ond, seven
parks,and trails. Landscape improvements provided in LMD 1 may include, but are not limited to:
turf, ground oovor, shrubs and tnaen, sprinkler and irrigation systems, ornamental |ighting,
drainage systems, masonry walls, entryway monuments,and associated appurtenances.These
improvements include all necessary services; operations; administration; and maintenance
required to keep the abovomen(ioned improvements in hea|thy, vigonous, and satisfactory
working condition.
The assessment rates are asfollows:
Fiscal Year Fiscal Year Percentage
2020/21 2021/22 Change
Single family home $ 02.21 $ 0221 0.00%
Condominium unit 46.11 4811 0.00Y6
Multi-family unit 4611 46.11 0.00%
Commercial/industrial parcel per acre 184.42 184.42 0.00%
Victoria Neighborhood Parks and Landscape Maintenance District(LMD 2) was formed in
1082 and consists uf5.8U0 single family homes,A72 condominiums,728 multi-family units,57.07
acres of commercial/industrial, 75.28 acres of public service parcels, and 16.97 acres of vacant
land, six parks, and trails. On June 5, 2013, a Proposition 218 ballot proceeding was held, and
residents approved a rate increase.
The assessment rates are aofollows:
Fiscal Year Fiscal Year Percentage
2020/21 2021/22 Change
Single family home $ 503.80 $ 503.80 0.00Y6
Condominium unit 370.08 370.08 0.00%
Multi-family unit 352.66 352.68 0.0096
Commercial/industrial parcel per acre 2.381.80 2.381.80 0.0096
Public service parcel per acre 137A0 137.40 0.0096
Undeveloped parcel per acre 100J6 10076 0.00Y6
6
LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2VICTORIA,
#4RTERRA VISTA, #8FlCARYN COMMUNITY, AND#7 NORTH ET|VVANDA.
STREET LIGHTING MAINTENANCE DISTRICT#2 REG|OENT|#L, AND
PARK AND RECREATION IMPROVEMENT DISTRICT#85
CITY OFRANCHO CUCAK8ONG/k' CAL|F(3RN|A
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES |N FUND BALANCES
FOR THE YEAR ENDED JUNE30' 2O21
Nmbm 1: Description of the Reporting Entity (Continued)
Landscape Maintenance District No. 4Fl Terra Vista (LK8D 4R) vvan formed in 1984 and
consists of2.652 single family homes, 1.249 condominiums, 4.001 multi-family, 35.41 acres of
schools, 176.41 acres of commercial/industrial, and 61.08 acres of vacant land. On
December 2, 2009, a Proposition 218 ballot proceeding was held, and residents approved a rate
increase.
The assessment rates are oofollows:
Fiscal Year Fiscal Year Percentage
202021 2021/22 Change
Single family home $ 387.15 $ 307.15 0.00Y6
Condominium unit 31772 31772 0.00Y6
Multi-family unit 27&01 278.01 0.00Y6
Commercial/industrial parcel per acre 1.290.74 1.290.74 0.0096
Undeveloped parcel per acre 99.20 99.29 0.00Y6
School parcel per acre 99.29 9929 0.00Y6
Landscape K8oinbynmnom District No. GR Caryn Community (LK8D GR) was formed in 1986
and consists of088 single family homes in Zone 1. 310 single family homes in Zone 2,
1.34 acres of schools,and O.00 acres of vacant land. On September 1.201O. a Proposition 218
ballot proceeding was held, and residents approved a rate increase.
The assessment rates are aofollows:
Fiscal Year Fiscal Year Percentage
202021 2021/22 Change
Single family home'Zone 1 $ 461.02 $ 462.07 2.2596
Single family home'Zone 2 338.94 346�55 2,2596
School parcel per acre 112.08 115.52 225%
Undeveloped parcel per acre 112.98 115.52 2.2596
Landscape Maintenance District No. 7 North Etivvandm (LK8D 7) was formed in 1080 and
currently consists of3.002 single family homes,
The assessment rates are asfollows:
Fiscal Year Fiscal Year Percentage
202021 2021/22 Change
Single family home $ 307.05 $ 307.55 0.00%
Street Lighting Maintenance District No. 2 Residential (GL02)was formed in August 1983
and consists of 7.320 single family homes. 2.053 multi-family units, and 35.16 aonae of
non-residential land. The SLID 2 assessments pay for energy and maintenance for streetlights
within the public right-of-way and dedicated easements within the boundaries of SLID 2.
7
LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2VICTORIA,
#4RTERRA VISTA, #8FlCARYN COMMUNITY, AND#7 NORTH ET|VVANDA.
STREET LIGHTING MAINTENANCE DISTRICT#2 REG|OENT|#L, AND
PARK AND RECREATION IMPROVEMENT DISTRICT#85
CITY OFRANCHO CUCAK8ONG/k' CAL|F(3RN|A
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES |N FUND BALANCES
FOR THE YEAR ENDED JUNE30' 2O21
Note 1: Description of the Reporting Entity (Continued)
The assessment rates are osfollows:
Fiscal Year Fiscal Year Percentage
2020/21 2021/22 Change
Single family home $ 39.87 $ 39.97 0.0096
Multi-family unit 38.97 38.87 0.00Y6
Commercial/industrial parcel per acre 79.94 70,94 0.00%
Park and Recreation Improvement District No. 85 Red Hill and Heritage Pork District
(PQ 86) was formed in April 1985. PO 85 is a combination Improvement and Maintenance
District. This special tax was issued to pay for bonds that were sold in 1985 and refinanced in
1Q03. The bonds that were sold for the construction of the parks have been paid off aeof20U5.
However, all parcels in PID 85 will continue to be assessed for the on-going maintenance of both
parks. The boundary of PID 85 is citywide except properties within the planned communities.
The assessment rates are asfollows:
Fiscal Year Fiscal Year Percentage
2020/21 2021/22 Change
Single family home $ 31.00 $ 31.00 0.00Y6
Condominium unit 31.00 31.00 0.00Y6
Multi-family unit 31�00 31.00 0.00%
Commoncia|/industha| parce|
<1.50 acres 15.50Lot 15.50/Lot 0.0096
1.51 3.50aon*s 48.50Lo 48.50Lo 0.00Y6
3.51 '7.00acres 108.50/Lot 108.50Lot 0.00%
7.01 14.00 acres 217.00Lot 217.00/Lct 0.0096
14.01 '25.00acres 434.00Lot 434.00Ln 0.00%
>25.01 acres 775.00L/t 775.00Lot 0.0096
Nmto2: Measurement Focus, Basis of Accounting and Financial Statement Presentation
The statement ofrevenues, expenditures and changes in fund balances is reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon oa 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 purpoea, the government considers
revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures are generally recorded when a liability is inourrad, as under accrual
accounting except for sales tax and grant revenue where the government considers revenue to
be available if collected within 1OU days of the end of the current fiscal year period. Hmwever,
debt service expenditures, as well as expenditures related to compensated absences and claims
and judgments, are recorded only when payment isdue.
8
LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2VICTORIA,
#4RTERRA VISTA, #8FlCARYN COMMUNITY, AND#7 NORTH ET|VVANDA.
STREET LIGHTING MAINTENANCE DISTRICT#2 REG|OENT|#L, AND
PARK AND RECREATION IMPROVEMENT DISTRICT#85
CITY OFRANCHO CUCAK8ONG/k' CAL|F(3RN|A
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES |N FUND BALANCES
FOR THE YEAR ENDED JUNE30' 2O21
Notm2: Measurement Fmoue. Basis of Accounting and Financial Statement Presentation
(Continued)
Assessment Revenue
Assessment revenue is recognized on the modified accrual basis, that is, in the fiscal year
for which the assessments 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 the assessments for the
Districts. Assessment liens attach annually aoof12:O1 A.M. nn the first day inJanuary
proceeding the fiscal year for which the assessments are levied.Assessments are levied on
real property as it exists on that date.The assessment levy covers the fiscal period July 1 to
June 30.One-half of the assessment ia due November 1;the second half nf the assessment
io due February 1. All assessments are delinquent if unpaid on December 10 and April 1O.
respectively.
Fund Type
The Landscape Maintenance District#1 General City,#2 Victoria,#4R Terra Vista,#6 Caryn
Community, and#7 North Etiwanda, Street Lighting Maintenance District#2, and Park and
Recreation Improvement District#85funds included in this report are accounted for in the
Cih/'sfinennia| records an special revenue funds. Special revenue funds account for and
report the proceeds of specific revenue sources that are restricted or committed to
expenditures for specified purposes. Special revenue funds are designed to help determine
and demonstrate resources that must be used for a specified purpose are, in fact, used for
that purpose.
Nmte3: Contributions from General Fund
A General Benefit Contribution quantifies the dollar value of a general benefit to parcels within a
district which is required by law to be funded from sources other than special assessments.This
general benefit is contributed from general revenues by the City's General Fund. |n the event a
district imoperating at deficit. lacks the resources for necessary maintenance ormaintains
insufficient operating reserves, a General Benefit Equivalent may be authorized by the
City Council through the annual budget process. Per City po|icy, the amount of the
General Benefit Equivalent will not exceed 11% of the adjusted total budget of the district under
consideration for the subsidy.
Note 4: Advances from City
On August 16. 2017. the City Council authorized an advance of $4.286.054 from the
General Fund to the Street Lighting Maintenance Dintriot #2 Fund to provide funding for the
purchase and acquisition of Southern California Edison owned streetlights,the installation of LED
lighting to utraet|ighCo, and other one-time costs necessary to inventory the streetlights. The
advance was completed in phases and bears interest at 1.0% on the outstanding balance. The
advance is payable in monthly installments and the final payment will occur in August 2037.At
June 30. 2021. the outstanding balance amounted tn $3.481.248.
9
Ls
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the statement of revenues, expenditures and
changes in fund balances of Landscape Maintenance Districts #1 General City, #2 Victoria,
#4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda, Street Lighting Maintenance District#2
Residential, and Park and Recreation Improvement District #85 (collectively, the Districts), of the
City of Rancho Cucamonga, California (the City), for the year ended June 30, 2021, and the related notes
to statement of revenues, expenditures and changes in fund balances, and have issued our report thereon
December 10, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the statement of revenues, expenditures and changes in fund
balances, we considered the City's internal control over financial reporting (internal control) as a basis for
designing audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the statement of revenues, expenditures and changes in fund balances, but not for the purpose
of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express
an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions,to prevent,or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Districts'
statement of revenues, expenditures and changes in fund balances will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by
those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
PrimeGlobal
Lance,Soli&Lunghard,LIP 203 N.Brea Blvd.,Suite 203 I Brea,CA92821 ) Phone:714:672.0022
To the Community Parks and Landscape Citizens' Oversight Committee
City of Rancho Cucamonga, California
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Districts'statement of revenues, expenditures
and changes in fund balances are free from material misstatemont, we performed tests of its compliance
with certain provisions of |awm, negu|etiona, oontraots, and grant agreementa, noncompliance with which
could have a direct and material effect on the statement ofrevenues, expenditures and changes in fund
balances. Hovvever, providing on opinion on compliance with those provisions was not an objective
of our audit, and a000rding|y, we do not axpnaoo such an opinion. The nuou|to of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Cih/'o internal control
or on compliance. This report is an integral pad of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
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Brea, California
December 1O, 3021
410,
r t~- CITY OF RANCHO CUCAMONGA
DATE: May 18, 2022
TO: Mayor and Members of the City Council
FROM: Community Parks and Landscape Citizens' Oversight Committee
BY: Noah Daniels, Finance Director
SUBJECT: Summary Of Review Of Results Of Annual Independent Audit Concerning The
Fiscal Year 2020/21 Expenditures In Landscape Maintenance Districts #1
General City,#2 Victoria,#4R Terra Vista, #6R Caryn Community,And#7 North
Etiwanda, Street Lighting District #2 Residential, and Park and Recreation
Improvement District#85. (CITY)
RECOMMENDATION:
It is recommended that the City Council receive and file this report.
BACKGROUND:
Established by Resolution 19-075, the Community Parks and Landscape Citizens' Oversight
Committee is made up of members of the public that reside and own property within Landscape
Maintenance Districts#1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and
#7 North Etiwanda, Street Lighting District#2 Residential, and Park and Recreation Improvement
District#85 (collectively "the Districts"), and do not serve on any other standing City Commission
or Committee.A primary purpose of the Committee is to review the annual audit after it is prepared
and report the results of its review to the City Council and the community on an annual basis.
The Committee doesn't have budgetary, operational decision-making authority, nor the authority
to allocate financial resources or direct staff.
ANALYSIS:
At our meeting of April 27, 2022, Noah Daniels, Finance Director, and Kirk Hamblin, Audit
Manager of Lance, Soli & Lunghard, LLP, provided an overview of the audit for the Districts for
the Fiscal Year 2020/21. The reports generated by the audit include:
• Audit Communication Letter
• Independent Auditors' Report on Statement of Revenues, Expenditures, and Changes in
Fund Balances
• Independent Auditors' Report on Internal Control Over Financial Reporting
By the law, each District accounts for its revenue and expenditures in its funds. The auditor
reviewed their work, and a discussion was held regarding the audit process and how the City
ensures that funds collected for maintenance and operations are spent to benefit each District.
The auditors and City Finance staff confirmed that the revenues received have been expended
appropriately on maintenance, operations, and capital improvements in each District.
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We appreciate the opportunity to serve our community on this Committee. If you have any
questions regarding our annual meeting, members of the Committee will be present at the City
Council meeting to present this report and discuss those questions with you.
FISCAL IMPACT:
There is no fiscal impact.
COUNCIL GOAL ADDRESSED:
This item addresses the City Council's core value of actively seeking and respectfully considering
all public input.
ATTACHMENTS:
Attachment 1 —Audit Communication Letter
Attachment 2 —Statement of Revenues, Expenditures and Changes in Fund Balances for the
Districts for the year ended June 30, 2021
Attachment 3 — Independent Auditors' Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters
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