HomeMy WebLinkAbout2022/06/16 - Special Budget MeetingCITY OF RANCHO CUCAMONGA
SPECIAL MEETING
AGENDA
CITY COUNCIL/FIRE PROTECTION DISTRICT
June 16, 2022 – 5:00 PM
Council Chambers
10500 Civic Center Drive
Rancho Cucamonga, CA 91730
A. CALL TO ORDER
Pledge of Allegiance
Roll Call: Mayor Michael
Mayor Pro Tem Kennedy
Council Members Hutchison and Scott
B.PUBLIC COMMUNICATIONS
This is the time and place for the general public to address the City Council on any item listed on the
agenda. State law prohibits the City Council from addressing any issue not previously included on
the Agenda. The City Council may receive testimony and set the matter for a subsequent meeting.
Comments are to be limited to five minutes per individual or less, as deemed necessary by the
Mayor, depending upon the number of individuals desiring to speak.
C. CONSENT CALENDAR
C1.Consideration of Approval of Revisions to Amended Fiscal Year 2021/22 Appropriations. (CITY)
C2.Consideration to Approve and Adopt Revised Statements of Investment Policy for the City of Rancho
Cucamonga and the Rancho Cucamonga Fire Protection District. (CITY/FIRE)
C3.Consideration to Approve the Following to be in Compliance with Governmental Accounting
Standards Board (GASB) Statement No. 54: 1) Updated Fund Balance Policy; 2) a Resolution
Committing to the Level of Fiscal Reserves for the City of Rancho Cucamonga; and 3) a Resolution
Committing to the Level of Fiscal Reserves for the Rancho Cucamonga Fire Protection District.
(RESOLUTION NO. 2022092 AND RESOLUTION NO. FD 2022021) (CITY/FIRE)
C4.Consideration to Approve Updated City General Fund Reserve Funding Goals Policy. (CITY)
C5.Consideration of an Interfund Loan Agreement and Authorizing an Appropriation in the NottoExceed
Amount of $14,035,700. (RESOLUTION NO. 2022088) (CITY)
D. CITY MANAGER'S STAFF REPORT(S)
D1.Consideration to Adopt the General Fund Preliminary Budget, Approve a Resolution Adopting the
General Fund Appropriations Limit for Fiscal Year 202223, and set Approval of a Final Budget for the
July 20, 2022 Board Meeting. (RESOLUTION NO. FD 2022016) (FIRE)
D2.Consideration of a Resolution Adopting the Budget and a Resolution Approving the Appropriations
Limit for Fiscal Year 202223 in Community Facilities District (CFD) No. 851. (RESOLUTION NO.
FD 2022017) (RESOLUTION NO. FD 2022018) (FIRE)
D3.Consideration of a Resolution Adopting the Budget and a Resolution Approving the Appropriation
Limit for Fiscal Year 202223 in Community Facilities District (CFD) No. 881. (RESOLUTION NO.
FD 2022019) (RESOLUTION NO. FD 2022020) (FIRE)
D4.Consideration to Approve Resolutions Adopting the Fiscal Year 2022/23 Budget, the Article XIIIB
Appropriations Limit for Fiscal Year 2022/23, and the Capital Improvement Program for Fiscal Year
2022/23. (RESOLUTION NOS. 2022069 AND 2022070) (CITY)
E. ADJOURNMENT
CERTIFICATION
I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my designee, hereby certify under
penalty of perjury that a true, accurate copy of the foregoing agenda was posted on at least twentyfour (24) hours prior to the
meeting per Government Code 54954.2 at City Hall: 10500 Civic Center Drive, Rancho Cucamonga, California; and on the City's
website.
LINDA A. TROYAN, MMC
CITY CLERK SERVICES DIRECTOR
If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's
office at (909) 4772700. Notification of 48 hours prior to the meeting will enable the City to make reasonable
arrangements to ensure accessibility. Listening devices are available for the hearing impaired.
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CITY OF RANCHO CUCAMONGASPECIAL MEETINGAGENDACITY COUNCIL/FIRE PROTECTION DISTRICTJune 16, 2022 – 5:00 PMCouncil Chambers 10500 Civic Center DriveRancho Cucamonga, CA 91730A. CALL TO ORDERPledge of AllegianceRoll Call: Mayor Michael Mayor Pro Tem Kennedy Council Members Hutchison and Scott B.PUBLIC COMMUNICATIONSThis is the time and place for the general public to address the City Council on any item listed on theagenda. State law prohibits the City Council from addressing any issue not previously included onthe Agenda. The City Council may receive testimony and set the matter for a subsequent meeting.Comments are to be limited to five minutes per individual or less, as deemed necessary by theMayor, depending upon the number of individuals desiring to speak.C. CONSENT CALENDARC1.Consideration of Approval of Revisions to Amended Fiscal Year 2021/22 Appropriations. (CITY)C2.Consideration to Approve and Adopt Revised Statements of Investment Policy for the City of RanchoCucamonga and the Rancho Cucamonga Fire Protection District. (CITY/FIRE) C3.Consideration to Approve the Following to be in Compliance with Governmental AccountingStandards Board (GASB) Statement No. 54: 1) Updated Fund Balance Policy; 2) a ResolutionCommitting to the Level of Fiscal Reserves for the City of Rancho Cucamonga; and 3) a ResolutionCommitting to the Level of Fiscal Reserves for the Rancho Cucamonga Fire Protection District.(RESOLUTION NO. 2022092 AND RESOLUTION NO. FD 2022021) (CITY/FIRE)C4.Consideration to Approve Updated City General Fund Reserve Funding Goals Policy. (CITY)
C5.Consideration of an Interfund Loan Agreement and Authorizing an Appropriation in the NottoExceed
Amount of $14,035,700. (RESOLUTION NO. 2022088) (CITY)
D. CITY MANAGER'S STAFF REPORT(S)
D1.Consideration to Adopt the General Fund Preliminary Budget, Approve a Resolution Adopting the
General Fund Appropriations Limit for Fiscal Year 202223, and set Approval of a Final Budget for the
July 20, 2022 Board Meeting. (RESOLUTION NO. FD 2022016) (FIRE)
D2.Consideration of a Resolution Adopting the Budget and a Resolution Approving the Appropriations
Limit for Fiscal Year 202223 in Community Facilities District (CFD) No. 851. (RESOLUTION NO.
FD 2022017) (RESOLUTION NO. FD 2022018) (FIRE)
D3.Consideration of a Resolution Adopting the Budget and a Resolution Approving the Appropriation
Limit for Fiscal Year 202223 in Community Facilities District (CFD) No. 881. (RESOLUTION NO.
FD 2022019) (RESOLUTION NO. FD 2022020) (FIRE)
D4.Consideration to Approve Resolutions Adopting the Fiscal Year 2022/23 Budget, the Article XIIIB
Appropriations Limit for Fiscal Year 2022/23, and the Capital Improvement Program for Fiscal Year
2022/23. (RESOLUTION NOS. 2022069 AND 2022070) (CITY)
E. ADJOURNMENT
CERTIFICATION
I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my designee, hereby certify under
penalty of perjury that a true, accurate copy of the foregoing agenda was posted on at least twentyfour (24) hours prior to the
meeting per Government Code 54954.2 at City Hall: 10500 Civic Center Drive, Rancho Cucamonga, California; and on the City's
website.
LINDA A. TROYAN, MMC
CITY CLERK SERVICES DIRECTOR
If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's
office at (909) 4772700. Notification of 48 hours prior to the meeting will enable the City to make reasonable
arrangements to ensure accessibility. Listening devices are available for the hearing impaired.
Page 2
DATE:June 16, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY:Tamara L. Oatman, Finance Director
SUBJECT:Consideration of Approval of Revisions to Amended Fiscal Year 2021/22
Appropriations. (CITY)
RECOMMENDATION:
Staff recommends that the City Council approve the revisions to the Amended Fiscal Year
2021/22 Appropriations as submitted.
BACKGROUND:
On May 4, 2022, the City Council approved the Amended Fiscal Year (FY) 2021/22
Appropriations. Subsequent to the approval of the amended appropriations, it was determined
that certain line items within the amended appropriations would be insufficient to fund the
remainder of the fiscal year or required an adjustment based on information that became available
subsequent to the approval. Consequently, it is necessary for staff to submit revisions to certain
line items included in the amended appropriations. The reasons for the revisions are noted in the
table below.
ANALYSIS:
In order to ensure that sufficient funding is available for all known expenditures, staff is requesting
the City Council approve the revisions to the Amended FY 2021/22 Appropriations as detailed in
the following table:
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Account N umber Account Description Reason for Revision
Increase/
(Decrease)
1001001-9714 General Fund - Transfer Out to
Computer Equipment
Replacement Fund
Increase prefunding of ERP
system implementation
$ 1,600,000
1714000-8001 Computer Equipment
Replacement Fund - Transfer In
from General Fund
Increase prefunding of ERP
system implementation
$ 1,600,000
1290601-9001 Library Fund - Transfer Out to
General Fund
Reimburse for prior year
overallocati on of post-RD A
residual balance revenues $ 140,340
1001000-8290 General Fund - Transfer In from
Library Fund
Reimburse for prior year
overallocati on of post-RD A
residual balance revenues $ 140,340
1001000-4911 Gen'l Fund - Reimb from Other
Funds
Increase PEG reimbursement for
C ouncil Chambers AV Mnt to
match expenditure $ 50,000
1001000-4911 Gen'l Fund - Reimb from Other
Funds
Increase Fire Faci lities Mai nt
Reimb to match expenditure $ 2,390
1120401-5300 Park Development Fund -
Contract Servi ces
Extend water line to grape vines at
C entral Park $ 18,030
1124303-5650/
1839124-0
Transportation - Capital Project/
6th St@BNF Spur Crossing Preliminary title reports $ 3,000
1124303-5650/
1956124-0
Transportation - Capital Project/
Day Creek: Upgrade LT Phases
C onstruction inspection services
(POCO) $ 5,230
1174303-5650/
2075174-0
State Gas Tax - Capital Project/
Hermosa:Fthill-C hurch Pvm Rhb
C ivil design servi ces
$ 40,200
1396000-4401 Housing Successor Agency -
Interest Earni ngs
Interest earnings from residual
recei pts to date $ 834,120
REVISIONS TO AMEND ED FISCAL YEAR 2021/22 APPROPRIATIONS
The $1.6 million increase in the transfer from the General Fund to the Computer
Equipment Replacement Fund is being requested to fully pre-fund the estimated cost of
the ERP System Implementation project (the “Project”) budgeted for FY 2022/23. The
Amended FY 2021/22 Appropriations included the prefunding of the Project at the initial
cost estimate of $3 million. However, subsequent to the approval of the Amended FY
2021/22 Appropriations, an update to the estimated pricing became available based on
preliminary responses to the City’s Request for Quotes (RFQ). While this updated pricing
was able to be incorporated into the Fiscal Year 2022/23 Preliminary Budget, the
corresponding increase in the pre-funding of the Project with the projected FY 2021/22
General Fund surplus was not yet addressed. The revision noted above will bring the
pre-funding of the Project up to the level of the updated estimated pricing of $4.6 million.
Pre-funding the Project will help to expedite the implementation and potentially help
reduce some costs on the back end because it is fully funded.
FISCAL IMPACT:
The net impact across all funds requiring revisions is an increase of $1,806,800 in
expenditures and an increase of $2,626,850 in revenues.
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COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
Not applicable.
ATTACHMENTS:
None.
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RECOMMENDATION:
Staff recommends that the City Council/Board of Directors approve and adopt the attached
Statements of Investment Policy for the City of Rancho Cucamonga (City) and the Rancho
Cucamonga Fire Protection District (District).
BACKGROUND:
California Government Code Section 53646(a)(2) requires that the City/District Treasurer or Chief
Fiscal Officer annually renders to the City Council/Board of Directors a Statement of Investment
Policy, which shall be considered at a public meeting. Further, the City Council/Fire Board shall
also consider any modifications to the investment policy at a public meeting.
On August 5, 2020, the City entered into a three-year contract with PFM Asset Management LLC
(“PFM”) for professional investment advisory services. As part of their contract, PFM annually
reviews the City’s and District’s investment policies for potential revisions to ensure the City’s and
District’s compliance with Government Code and to ensure that the policy accommodates the
investment strategies agreed to by the City/District and PFM.
The Government Code and the City’s investment policy normally limit the maximum maturity of
any investment in the portfolio to five years. This is done to limit the City’s exposure to a security’s
market value fluctuations, which could result in a loss if the security was sold before maturity. The
magnitude of any potential loss increases with the security’s term to maturity.
The Government Code recognizes that there are times when investing in securities with maturities
beyond five years can be to an agency’s benefit and permits investing in those securities when
authorized by the City Council at least three months in advance of the first investment and those
investments are limited to those investments with the limited credit risk (primarily U.S. Treasury
and Federal Agency securities).
DATE:June 16, 2022
TO:Mayor and Members of the City Council / President and Members of the
Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY:Lori E. Sassoon, Deputy City Manager/Administrative Services
Tamara L. Oatman, Finance Director
Jason A. Shields, Management Analyst II
SUBJECT:Consideration to Approve and Adopt Revised Statements of Investment Policy
for the City of Rancho Cucamonga and the Rancho Cucamonga Fire
Protection District. (CITY/FIRE)
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ANALYSIS:
PFM recently completed their review of the City of Rancho Cucamonga’s and the Rancho
Cucamonga Fire Protection District’s Investment Policies (the “Policies”). As written, PFM stated
that the Policies are in compliance with the California Government Code (the “Code”) statutes
regulating the investment of public funds. Furthermore, there have been no changes to the
relevant Code sections, effective January 1, 2022, that would require any changes to the Policies.
However, based on the anticipated needs of the City, they have recommended modifications to
the City’s Investment Policy (Section 15.0 – Maximum Maturities) to permit up to 10% of the
investment portfolio to be invested in securities with maturities of five to ten years.
These modifications would enable staff to invest in longer-term investments to address a longer-
term liability. As an example, if approved, the change would facilitate the setting aside of funds
for the payoff of the City’s 2019 Lease Revenue Bonds. As these longer-term investments would
be matched to a longer-term cash flow requirement, it would be unlikely that the City would need
to sell these securities before maturity, which limits the significance of the investments’ market
value fluctuations prior to maturity.
This Policy revision does not represent a change in the City’s basic investment practices, which
continue to emphasize safety and liquidity as the primary investment objectives. As a risk control
measure, longer-term investments would be limited to a maximum of 10% of funds with a
maximum maturity of ten years (the Government Code does not specify a maximum maturity).
The majority of investments would continue to be limited to a maximum maturity of five years of
less. In practice, the average maturity of the City’s managed portfolio is around 2.5 years. In
addition, the City maintains ample funds in overnight investments, such as the Local Agency
Investment Fund (LAIF) and bank accounts, so the City does not need to sell securities from the
portfolio to pay expenses.
This Policy revision is being proposed for both the City’s and District’s Investment Policies for
consistency. The attached Policies for the City and District have been reviewed and approved by
the City Treasurer and the District Treasurer, respectively.
FISCAL IMPACT:
None.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
These policies support the City Council’s/Fire Board’s fiduciary roles as custodians of the public’s
resources by providing guidelines for the prudent investment of the City’s/District’s idle cash and
outlining policies essential to ensuring the safety and financial strength of the City’s/District’s
investment portfolios.
ATTACHMENTS:
Attachment 1 – Statement of Investment Policy 2022-City
Attachment 2 – Statement of Investment Policy 2022-Fire
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ATTACHMENT 1
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CITY OF RANCHO CUCAMONGA
STATEMENT OF INVESTMENT POLICY
TABLE OF CONTENTS
Introduction ........................................................................................................ 1
Scope .................................................................................................................. 1
Delegation of Authority ................................................................................... 1-2
Prudence ............................................................................................................ 2
Objective ......................................................................................................... 2-3
Ethics and Conflicts of Interest ......................................................................... 3-4
Authorized Financial Dealers and Institutions ..................................................... 4
Authorized and Suitable Investments .............................................................. 4-8
Prohibited Investments ....................................................................................... 8
Review of Investment Portfolio .......................................................................... 8
Investment Pools ............................................................................................. 8-9
Collateralization .................................................................................................. 9
Safekeeping and Custody .................................................................................... 9
Diversification ................................................................................................... 10
Maximum Maturities ........................................................................................ 10
Internal Control ................................................................................................ 10
Performance ................................................................................................ 10-11
Reporting .......................................................................................................... 11
Investment Policy Adoption .............................................................................. 12
Glossary ....................................................................................................... 13-19
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Statement of Investment Policy Page 1
CITY OF RANCHO CUCAMONGA
STATEMENT OF INVESTMENT POLICY
1.0 INTRODUCTION
This Statement of Investment Policy (“Policy”) provides guidelines for the prudent investment of
the City of Rancho Cucamonga’s (“City”) idle cash and outlines the policies essential to ensuring
the safety and financial strength of the City’s investment portfolio. This Policy is based on the
principles of prudent money management and conforms to all federal, state, and local laws
governing the investment of public funds. The goal of this Policy is to enhance the economic
status of the City by protecting its pooled cash and to invest public funds to:
1. Meet the daily cash flow needs of the City;
2. Comply with all laws of the State of California regarding investment of public funds; and
3. Achieve a reasonable rate of return while minimizing the potential for capital losses
arising from market changes or issuer default.
2.0 SCOPE
This Policy applies to the investment activities of all funds of the City. These funds are accounted
for in the City’s Comprehensive Annual Financial Report (CAFR) and include: General Fund,
Special Revenue Funds, Debt Service Funds, Capital Project Funds, Proprietary Funds, as well as
Agency Funds and a Private-Purpose Trust Fund.
Bond proceeds shall be invested in accordance with the requirements and restrictions outlined
in bond documents as approved by the City Council. If the bond documents are silent as to the
permitted investments, the bond proceeds will be invested in the securities permitted by this
Policy. Notwithstanding the other provisions of this Policy, the percentage limitations listed
elsewhere in this Policy do not apply to bond proceeds.
3.0 DELEGATION OF AUTHORITY
The City Council, as permitted under California Government Code §53607, delegates the
responsibility to manage the City’s investment portfolio to the City Treasurer for a period of one-
year, unless revoked. Subject to review, the City Council may renew the delegation of authority
each year. The City Treasurer shall be responsible for all transactions undertaken and shall
establish a system of controls to regulate the activities of subordinate officials, and their
procedures, in the absence of the City Treasurer. Pursuant to Government Code §1190, the City
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Statement of Investment Policy Page 2
Treasurer appoints the Deputy City Manager/Administrative Services to act as Deputy Treasurer
with responsibility to manage the City’s investment portfolio on a daily basis. The City
Treasurer/Deputy Treasurer will maintain on file a written authorization designating those
individuals to whom daily investment activities, such as carrying out the City Treasurer's/Deputy
Treasurer’s investment instructions, confirming treasury transactions, and other routine
activities, have been delegated.
As authorized by the City Council, the City may also utilize the services of an independent
investment advisor to assist with the investment program under the supervision of the City
Treasurer/Deputy Treasurer. The investment advisor shall follow this Policy and such other
written instructions as are provided by the City. The investment advisor shall never take
possession of the City’s funds or assets.
4.0 PRUDENCE
All persons authorized to make investment decisions on behalf of the City are trustees and
therefore fiduciaries subject to the prudent investor standard, as described in Government Code
section 53600.3 which states:
When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing
public funds, a trustee shall act with care, skill, prudence, and diligence under the
circumstances then prevailing, including, but not limited to, the general economic
conditions and the anticipated needs of the agency, that a prudent person acting in a like
capacity and familiarity with those matters would use in the conduct of funds of a like
character and with like aims, to safeguard the principal and maintain the liquidity needs
of the agency.
The City Treasurer/Deputy Treasurer and authorized persons acting in accordance with this Policy
and the “prudent investor” standard and exercising due diligence shall be relieved of personal
responsibility for an individual security’s credit risk or market price changes, provided deviations
from expectations are reported in a timely manner and appropriate action is taken to control
adverse developments, whenever possible.
5.0 OBJECTIVE
The objective of the investment portfolio is to meet the short- and long-term cash flow demands
of the City. To achieve this objective, the portfolio will be structured to provide safety of principal
and liquidity, while then providing a reasonable return on investments.
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Statement of Investment Policy Page 3
The authority governing investments for municipal governments is set forth in Government Code
Sections 53600 et seq. City strategy has been to limit investments more stringently than required
under state law. The primary objectives of investment activities, in order of priority are:
1. Safety - Safety and risk associated with an investment refers to the potential loss of
principal, interest, or combination thereof. The City only invests in those instruments that
are considered safe. Each investment transaction shall be undertaken in a manner that
seeks to ensure, whenever possible, that all capital losses are avoided, whether from
securities default, broker/dealer default, or erosion of market value. The City shall seek
to preserve principal by mitigating two types of risk: credit risk and market risk.
Credit risk, defined as the risk of loss due to failure of the issuer of a security, shall be
mitigated by investing in only very safe securities and by diversifying the investment
portfolio so that the failure of any one issuer would not unduly harm the City’s cash
flow.
Market risk, defined as the risk of market value fluctuations due to overall changes in
the general level of interest rates, shall be mitigated by structuring the portfolio to
align with the City’s anticipated cash flow needs. It is explicitly recognized, however,
that in a diversified portfolio, occasional measured losses may occur and must be
considered within the context of overall investment return and liquidity needs.
2. Liquidity - Liquidity is an important investment quality especially when the need for
unexpected funds occasionally occurs. The City’s investment portfolio will remain
sufficiently liquid to enable the City to meet operating requirements that might be
reasonably anticipated.
3. Yield - The City’s investment portfolio shall be designed with the objective of attaining a
reasonable market rate of return throughout budgetary and economic cycles,
commensurate with the City’s investment risk constraints as long as it does not diminish
the objectives of Safety and Liquidity.
6.0 ETHICS AND CONFLICTS OF INTEREST
The City Treasurer/Deputy Treasurer and employees involved in the investment process shall
refrain from personal business activity that could conflict with proper execution of the
investment program, or which could impair their ability to make impartial investment decisions.
Employees and investment officers shall disclose any material financial interest in financial
institutions that conduct business with the City, and they shall further disclose any personal
financial/investment positions that could be affected by the performance of the City’s operations
and functions or by the management of the City’s investment program. The Treasurer/Deputy
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Statement of Investment Policy Page 4
Treasurer and investment employees are required to file annual disclosure statements as
required by the Fair Political Practices Commission (FPPC).
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer/Deputy Treasurer shall only execute investment transactions with those direct
issuers authorized by this Policy (LAIF, LGIPs, money market funds, and banks). All other
investment transactions will be conducted through the City’s investment advisor who will
maintain their own list of approved issuers, brokers/dealers, and financial institutions with which
to conduct transactions on the City’s behalf.
8.0 AUTHORIZED AND SUITABLE INVESTMENTS
The City is further governed by California Government Code Sections 53600 et. seq. to invest in
specific types of securities. The City has further limited the types of securities in which it may
invest. In the event an apparent discrepancy is found between this Policy and the Government
Code, the more restrictive parameters will take precedence. Percentage holding limits listed in
this Policy apply at the time the security is purchased. Credit ratings, where shown, specify the
minimum credit rating category required at purchase. In the event a security held by the City is
subject to a credit rating change that brings it below the minimum credit ratings specified in this
Policy, the City Treasurer/Deputy Treasurer should notify the City Council of the change in the
next monthly investment report. The course of action to be followed will then be decided on a
case-by-case basis, considering such factors as the reason for the change, prognosis for recovery
or further rate drops, and the market price of the security. Any security not listed in Section 8.0
is not a valid investment for the City. The concise list of approved securities is as follows:
United States Treasury Securities: United States Treasury Bills, Bonds, and Notes or those
instruments for which the full faith and credit of the United States are pledged for payment
of principal and interest.
There is no limit on the percentage of the portfolio that can be invested in this category.
United States Federal Agencies: Obligations issued by Federal Agencies or United States
government-sponsored enterprise obligations, participations, or other instruments, including
those issued by or fully guaranteed as to principal and interest by federal agencies or United
States government-sponsored enterprises.
There is no limit on the percentage of the portfolio that can be invested in this category.
Supranational Securities: United States dollar denominated senior unsecured
unsubordinated obligations issued or unconditionally guaranteed by the International Bank
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Statement of Investment Policy Page 5
for Reconstruction and Development, International Finance Corporation, or Inter-American
Development Bank. The maximum remaining maturity for supranational obligations must be
five years or less, and they must be eligible for purchase and sale within the United States.
These investments must be rated in a rating category of “AA” or better by a NRSRO.
There is a 30% limit on the percentage of the portfolio that can be invested in this category.
The maximum remaining maturity of any investment in this category shall not exceed five-
years.
Municipals Notes or Bonds: Registered state warrants or treasury notes or bonds of this
state, including bonds payable solely out of the revenues from a revenue-producing property
owned, controlled, or operated by the state or by a department, board, agency, or authority
of the state.
Registered treasury notes or bonds of any of the other 49 states in addition to California,
including bonds payable solely out of the revenues from a revenue-producing property
owned, controlled, or operated by a state or by a department, board, agency, or authority of
any of the other 49 states, in addition to California.
Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state,
including bonds payable solely out of the revenues from a revenue-producing property
owned, controlled, or operated by the local agency, or by a department, board, agency, or
authority of the local agency.
Purchases are limited to securities rated in a rating category of “A” (long-term) or “A-1”
(short-term) or their equivalents or better by a Nationally Recognized Statistical Rating
Organization (“NRSRO”). (The minimum rating shall apply to any issuer, irrespective of any
credit enhancement).
There is a 30% limit on the percentage of the portfolio that can be invested in this category.
Negotiable Certificates of Deposit: Negotiable certificates of deposit issued by a nationally
or state-chartered bank, a savings association or a federal association, a state or federal credit
union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases are
limited to securities rated in a rating category of “A” (long-term) or “A-1” (short-term) or their
equivalents or better by an NRSRO.
There is a 30% limit on the percentage of the portfolio that can be invested in this category.
Asset-Backed Securities: A mortgage passthrough security, collateralized mortgage
obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate,
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Statement of Investment Policy Page 6
consumer receivable passthrough certificate, or consumer receivable-backed bond.
Securities shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO.
There is a 20% limit on the percentage of the portfolio that can be invested in this category.
The maximum remaining maturity of any investment in this category shall not exceed five-
years.
Medium-Term Notes: Medium-Term Notes are defined as all corporate and depository
institution debt securities. They must be issued by corporations organized and operating
within the United States. Notes eligible for investment shall be rated in a rating category of
“A” or its equivalent or better by an NRSRO.
There is a 30% limit on the percentage of the portfolio that can be invested in this category.
The maximum remaining maturity of any investment in this category shall not exceed five-
years.
Bankers’ Acceptances: Bankers’ acceptances, otherwise known as bills of exchange or time
drafts, that are drawn on and accepted by a commercial bank. Purchases are limited to issuers
that have short-term debt rated in a rating category of “A-1” or its equivalent or higher by an
NRSRO.
There is a 40% limit on the percentage of the portfolio that can be invested in this category.
The maximum maturity shall not exceed 180 days.
Commercial Paper: Must be of “prime” quality of the highest ranking or of the highest letter
and number rating as provided for by an NRSRO.
The entity that issues the commercial paper shall meet all the following conditions: (i) is
organized and operating in the United States as a general corporation, (ii) has total assets in
excess of five hundred million dollars ($500,000,000), and (iii) has debt other than
commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher
by an NRSRO.
There is a 40% limit on the percentage of the portfolio that can be invested in this category
(the limit is 25% for agencies that have less than $100 million of investment assets). The
maximum maturity shall not exceed 270 days.
Repurchase Agreements (Repos): An executed Master Repurchase Agreement is required
between the City and the broker dealer or financial Institution. The market value of securities
that underlies a repurchase agreement shall be valued at 102 percent or greater of the funds
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Statement of Investment Policy Page 7
borrowed against those securities and the value shall be adjusted no less than quarterly.
Collateral is restricted to U.S. Treasury and Federal Agency securities.
There is a 20% limit on the percentage of the portfolio that can be invested in this category.
The maximum maturity of any investment in this category shall not exceed one year.
State of California Local Agency Investment Fund (LAIF): The Local Agency Investment Fund
(LAIF) is a State of California managed investment pool established by the State Treasurer for
the benefit of local agencies.
There is no limit on the percentage of the portfolio that can be invested in this category. The
maximum investment in LAIF accounts is dependent upon limits established under the Local
Agency Investment Fund guidelines and not Government Code.
Joint Powers Authority (JPA) Investment Pool: Shares of beneficial interest issued by a joint
powers authority organized pursuant to Section 6509.7 that invests in the securities and
obligations authorized in Government Code. Whenever the City has any funds invested in a
LGIP, the City Treasurer/Deputy Treasurer shall maintain on file a copy of the LGIP’s current
information statement and periodically review the LGIP’s investments.
There is no limit on the percentage of the portfolio that can be invested in this category.
Money Market Funds (“MMF”): Government Money Market Funds meeting either of the
following criteria: (A) Attained the highest ranking or the highest letter and numerical rating
provided by not less than two NRSROs, or (B) Retained an investment advisor with not less
than five years’ experience and registered or exempt from registration with the SEC, with
assets under management in excess of five hundred million dollars ($500,000,000).
Whenever the City has any funds invested in an MMF, the City Treasurer/Deputy Treasurer
shall maintain on file a copy of the MMF’s current information statement. A maximum of 20%
of the City’s portfolio may be invested in this category.
There is a 20% limit on the percentage of the portfolio that can be invested in this category.
Bank Deposits: FDIC insured or collateralized demand deposit accounts, savings accounts,
market rate accounts, certificates of deposits and other types of bank deposits in financial
institutions located in California. The amount on deposit in any financial institution shall not
exceed the shareholder's equity. To be eligible to receive City deposits, the financial
institution must have received a minimum overall satisfactory rating, under the Community
Redevelopment Act, for meeting the credit needs of California Communities in its most recent
evaluation. Bank deposits are required to be collateralized as specified under Government
Code Section 53630 et seq. The City Treasurer/Deputy Treasurer, at his/her discretion, may
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Statement of Investment Policy Page 8
waive the collateralization requirements for any portion that is covered by federal deposit
insurance. The City shall have a signed agreement with any depository accepting City funds
per Government Code Section 53649. There is no limit on the percentage of the portfolio that
may be invested in this category.
There is no limit on the percentage of the portfolio that can be invested in this category.
However, a maximum of 10 percent of the portfolio may be invested in time deposits.
9.0 PROHIBITED INVESTMENTS
Any security type or structure not specifically approved by this policy is hereby specifically
prohibited. Security types which are thereby prohibited include, but are not limited to, inverse
floaters, derivatives, range notes, interest only strips that are derived from a pool of mortgages,
or in any investment that could result in zero interest accrual if held to maturity.
10.0 REVIEW OF INVESTMENT PORTFOLIO
The securities held by the City must be in compliance with Section 8.0 “Authorized and Suitable
Investments” at the time of purchase. If, subsequent to the date of purchase, a security is
determined to be no longer in compliance with Section 8.0, the City Treasurer/Deputy Treasurer
shall report the non-compliant security to the City Council and shall include a disclosure in the
monthly Investment Report if the security is held at the date the report is prepared.
The City’s external, independent auditors perform an annual review of the City’s Investment
Policy, investment process, and related internal controls. The annual review process is
performed as part of the City’s annual external financial audit.
11.0 INVESTMENT POOLS
The Local Agency Investment Fund (LAIF) is a voluntary investment alternative for California’s
local governments and special districts authorized by the California Government Code. LAIF is a
State of California managed investment pool established by the State Treasurer for the benefit
of local agencies.
The City’s participation in LAIF was approved by the City Council with other authorized
investments in July 1987. It is a permitted investment with the knowledge that the fund may
invest in some vehicles allowed by statute but not otherwise authorized under the City’s
authorized investments. All securities in LAIF are purchased under the authority of Government
Code Sections 16430 and 16480. All investments are purchased at market value, and market
valuation is conducted monthly.
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Statement of Investment Policy Page 9
The City may also invest in shares of beneficial interest issued by a joint powers authority (“JPA”)
organized pursuant to Section 6509.7 of the California Government Code that invests in the
securities and obligations specified in the code and which shall retain an investment advisor that
meets the following criteria:
1. Be registered or exempt from registration with the Securities and Exchange Commission;
2. Have assets under management in excess of five hundred million dollars ($500,000,000),
and
3. Have not less than five (5) years of experience investing in the securities and obligations
authorized herein.
12.0 COLLATERALIZATION
All bank deposits must be FDIC insured or collateralized in accordance with Government Code
Section 53630 et seq.
13.0 SAFEKEEPING AND CUSTODY
To protect against potential losses by the collapse of individual securities dealers, all trades will
be transacted on a delivery-versus-payment (DVP) basis. This means that the securities shall be
delivered to the City’s designated custodian upon receipt of the payment by the City. The
securities shall be held in safekeeping by a third-party custodian, acting as agent for the City
under the terms of a custody agreement executed by the bank and City. The third-party
custodian shall be required to issue a monthly safekeeping report to the City that lists the specific
investment, rate, maturity and other pertinent information.
The only exception to the foregoing shall be depository accounts and security purchases made
with investment pools and certificates of deposit since the purchased securities are not
deliverable. Evidence of these investments will be held in the City’s vault. No outside
broker/dealer or advisor may have access to City funds, accounts or investments, and any
transfer of funds to or through an outside broker/dealer must be approved by the City
Treasurer/Deputy Treasurer.
The City strives to maintain the level of investment of all funds as near 100% as possible, through
daily and projected cash flow determinations. Idle cash management and investment
transactions are the responsibility of the City Treasurer/Deputy Treasurer.
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Statement of Investment Policy Page 10
14.0 DIVERSIFICATION
It is the policy of the City to diversify its investment portfolio. Assets shall be diversified to
eliminate the risk of loss resulting from over-concentration of assets in a specific issuer, security
type, and maturities. Diversification strategies shall be determined and revised periodically. The
purpose of diversifying is to reduce overall portfolio risks while attaining an average market rate
of return; therefore, it needs to be conceptualized in terms of maturity, instrument types and
issuer. To promote diversification, no more than 5% of the portfolio may be invested in the
securities of any one issuer, regardless of security type; excluding U.S. Treasuries, federal
agencies, supranationals, and pooled investments such as LAIF, money market funds, or local
government investment pools.
15.0 MAXIMUM MATURITIES
To the extent possible, the City will attempt to match security maturities to anticipated cash flow
requirements. Where this Policy does not list a specific maturity limit, this Policy permits up to
10% of the portfolio to be invested in securities with remaining maturities between 5 and 10
years (this provision takes effect 3 months after June 16, 2022).
16.0 INTERNAL CONTROL
The City Treasurer/Deputy Treasurer is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the City are protected from loss, theft or
misuse. The procedures should include references to individuals authorized to execute
transactions or transfers, safekeeping agreements, repurchase agreements, wire transfer
agreements, collateral/depository agreements and banking services contracts, as appropriate.
The internal control structure shall be designed to provide reasonable assurance that these
objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits
requires estimates and judgement by management. The City Treasurer/Deputy Treasurer shall
establish an annual process of independent review by an external auditor. This review will
provide internal control by assuring compliance with policies and procedures set forth in this
Policy. Also, see Section 9.0 of this Policy.
17.0 PERFORMANCE
The investment performance of the City’s operating portfolio shall be evaluated and compared
to an appropriate benchmark in order to assess the success of the investment program relative
to the City’s Safety, Liquidity, and Yield objectives. This review will be conducted annually with
the City Treasurer, City Manager, Deputy City Manager/Administrative Services, and Finance
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Statement of Investment Policy Page 11
Director, and, if necessary, consideration will be given to making adjustments to future
investment strategies as market conditions permit.
18.0 REPORTING
The City Treasurer shall prepare and submit a monthly investment report to the City Council and
City Manager, which shall include all securities, excluding those held by and invested through
trustees. The report shall include the following:
A monthly report of transactions.
The type of investment, name of the issuer, date of purchase, date of maturity, par and dollar
amount invested in all securities.
The weighted average maturity of the investments.
Any funds, investments, or programs including loans that are under the management of
contracted parties.
A description of the compliance with this Policy.
A statement of the City’s ability to meet its pooled expenditure requirements for the next six
months or provide an explanation as to why sufficient money shall or may not be available.
The investment portfolio report shall include current market value information for all
investments. A monthly market value will be obtained for each security owned by the City.
For purposes of reporting, the market value of each security may be obtained from the City’s
custodian bank or other pricing source(s) utilized by the City’s investment advisor.
The City Treasurer shall be responsible for reviewing and modifying investment guidelines as
conditions warrant and is required to submit same for re-approval to the City Council on an
annual basis with or without changes. However, the City Treasurer may, at any time, further
restrict the items approved for purchase as deemed appropriate.
The basic premise underlying the City’s investment philosophy is, and will continue to be, to
ensure that money is always safe and available when needed.
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Statement of Investment Policy Page 13
GLOSSARY OF TERMS
The glossary is provided for general information only. It is not to be consider a part of the Policy
for determining Policy requirements or terms.
AGENCIES: Agencies of or sponsored by the Federal government set up to supply credit to various
classes of institutions. Examples include Federal Home Loan Banks (FHLB), Federal Farm Credit
Bank (FFCB), Federal Home Loan Mortgage Corporation (FHLMC), and Federal National Mortgage
Association (FNMA).
ASKED: The price at which securities are offered by a selling party to a buying party.
ASSET-BACKED SECURITIES (ABS): Securities whose income payments and hence value is
derived from and collateralized (or "backed") by a specified pool of underlying assets which are
receivables. The pools of underlying assets can comprise common payments credit cards, auto
loans, mortgage loans, and other types of assets. Interest and principal are paid to investors
from borrowers who are paying down their debt.
BANKERS’ ACCEPTANCE (BA): A draft, bill, or exchange accepted by a bank or trust company.
The accepting institution guarantees payment of the bill, as well as the issuer.
BASIS POINT: One basis point is one-hundredth of a percent (i.e., 0.01%).
BEAR MARKET: A period of generally pessimistic attitudes and declining market prices.
BENCHMARK: A comparative base for measuring the performance or risk tolerance of the
investment portfolio. A benchmark should represent a close correlation to the level of risk and
the average duration of the portfolio’s investments.
BID: The price offered by a buyer of securities. (When selling securities, you ask for a bid.)
BOND EQUIVALENT YIELD: The basis on which yields on notes and bonds are quoted.
BOOK VALUE (COST VALUE): The value at which a debt security is shown on the holder’s balance
sheet. Book value is acquisition cost less amortization of premium or accretion of discount.
BROKER/DEALER: An individual or firm that brings buyers and sellers together in a securities
transaction.
BULL MARKET: A period of generally optimistic attitudes and increasing market prices.
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Statement of Investment Policy Page 14
CALLABLE SECURITIES: A security that is redeemable by the issuer before the scheduled maturity.
Bonds are usually called when the interest rates fall so significantly that the issuer can save
money by floating new bonds at lower rates.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate.
Large denomination CD’s are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to
secure repayment of a loan. Also, refers to securities pledged by a bank to secure deposits of
public monies.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of the City of
Rancho Cucamonga. It includes five combined statements for each individual fund and account
group prepared in conformity with Generally Accepted Accounting Principles (GAAP). It also
includes supporting schedules necessary to demonstrate compliance with GAAP, finance-related
legal and contractual provisions, extensive introductory material, and a detailed Statistical
Section.
CORPORATE MEDIUM-TERM NOTE: Corporate and depository institution debt securities with a
maximum remaining maturity of five years or less, issued by corporations organized and
operating within the United States or by depository institutions licensed by the United States or
any state and operating within the United States.
COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on
the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment
date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling
for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with a simultaneous exchange of
money for the securities.
DERIVATIVES: Financial products dependent for their value on (or derived from) an underlying
financial instrument, a commodity, or an index.
DISCOUNT: The difference between the cost price of a security and its maturity when quoted at
lower than face value. A security selling below original offering price shortly after sale also is at
a discount.
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Statement of Investment Policy Page 15
DISCOUNT SECURITIES: Non-interest bearing, money market instruments that are issued at a
discount and redeemed at maturity for full face value, e.g. U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent
returns.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank
deposits up to $250,000 per deposit.
FEDERAL FUNDS RATE: The interest rate charged by one institution lending federal funds to
another.
FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12
regional banks), which lend funds and provide correspondent banking services to member
commercial banks, thrift institutions, credit unions and insurance companies. The mission of the
FHLBs is to liquefy the housing related assets of its members who must purchase stock in their
district bank.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under
the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working
under the auspices of the Department of Housing and Urban Development (HUD). It is the largest
single provider of residential mortgage funds in the United States. Fannie Mae, as the
corporation is called, is a private stockholder-owned corporation. The corporation’s purchases
include a variety of adjustable mortgages, second loans, and fixed-rate mortgages. FNMA’s
securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all
security holders will receive timely payment of principal and interest.
FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal
Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New
York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating
basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases
and sales of Government Securities in the open market to influence the volume of bank credit
and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and
comprising a seven-member Board of Governors in Washington, D.C., 12 regional banks and
about 5,700 commercial banks that are members of the system.
GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): The independent organization
that establishes and improves standards of accounting and financial reporting for the United
States, state and local governments.
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Statement of Investment Policy Page 16
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities
influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers,
commercial banks, savings and loan associations, and other institutions. Security holder is
protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by
the FHA, VA, or FMHM mortgages. The term “pass-through” is often used to describe Ginnie
Maes.
INTEREST ONLY STRIP: Investments created by separating the principal and interest portions of
a debt security or pool of securities into separate investments. Interest only strips are most
common with mortgage-backed securities. The investor benefits if interest rates rise and
principal repayments slow, but if interest rates fall and principal repayments accelerate, the
investor will receive less interest. Once the principal amount has been repaid, interest payments
stop, and the value of an interest only strip falls to zero.
INVERSE FLOATER: Debt securities that have a floating coupon rate that adjusts inversely to
movements in a benchmark interest rate. They can offer a hedge against falling interest
rates. However, the structure of these investments can magnify changes in the security’s market
value. Furthermore, if interest rates rise, the investor may end up with a security that pays little
to no interest with a diminished security value.
INVESTMENT AGREEMENTS: An agreement with a financial institution to borrow public funds
subject to certain negotiated terms and conditions concerning collateral, liquidity and interest
rates.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a
substantial loss.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions
that are placed in the custody of the State Treasurer for investment and reinvestment.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): A type of pooled investment program formed
by a joint powers authority in which funds from its local agency investors are aggregated together
for investment purposes.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or
sold.
MARKET RATE OF RETURN: A rate of return commensurate with the market for similar securities
(maturity, credit rating, duration and liquidity) would be considered a market rate of return.
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Statement of Investment Policy Page 17
MASTER REPURCHASE AGREEMENT : A written contract covering all future transactions between
the parties to repurchase–reverse, repurchase agreements that establishes each party’s rights in
the transactions. A master agreement will often specify, among other things, the right of the
buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY: The date upon which the principal or stated value of an investment becomes due
and payable.
MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper,
bankers’ acceptances, etc.) are issued and traded.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): A credit rating
agency approved by the U.S. Securities and Exchange Commission (SEC) that provides credit
ratings that are used by the U.S. government and investors as benchmarks. Examples include
Standard & Poor’s Corporation, Moody’s Investor Services, Inc. and Fitch, Inc.
OFFER: The price asked by a seller of securities. (When buying securities, you ask for an offer.)
OPEN MARKET OPERATIONS: Federal Reserve activity. Under the Federal Reserve Act, the Fed
uses purchases and sales of Government and Federal Agency securities to add to or subtract from
commercial bank reserves. Goals are to sustain economic growth, high employment and
reasonable price stability.
PAPER GAIN OR LOSS: Term used for unrealized gain or loss on securities being held in a portfolio
based on comparison of current market quotes and their original cost. This situation exists if the
security is held while there is a difference between cost value (book value) and the market value.
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of market
activity, positions and monthly financial statements to the Federal Reserve Bank of New York and
are subject to its informal oversight. Primary dealers include Securities and Exchange
Commission (SEC) registered securities broker/dealers, banks and a few unregulated firms.
PRUDENT INVESTOR STANDARD: An investment standard to be followed by those authorized to
make investment decisions on behalf of a local agency. Those authorized shall act with care, skill,
prudence, and diligence under the circumstances then prevailing, including, but not limited to,
the general economic conditions and the anticipated needs of that agency.
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Statement of Investment Policy Page 18
RANGE NOTE: A structured investment that pays interest as long as a benchmark interest rate is
within a specified interest rate range. These securities provide higher than market interest rates,
but the investor will not receive any interest if the benchmark interest rate moves outside the
specified range. The investor is betting interest rates will remain relatively stable.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current
market price. This may be the amortized yield to maturity on a bond; the current income return.
SAFEKEEPING: The service to customers by banks and trust companies when the bank or trust
company stores the securities for protection, receives coupon payments and redeems issues at
maturity.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following
the initial distribution of securities.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in
securities transactions by administering securities legislation.
SEC RULE 15(C) 3-1: See Uniform Net Capital Rule.
SUPRANATIONALS: Development banks that share the same goal of providing an improved
standard of living in their member countries, but each having different mandates. There are
three banks (supranationals) in which California local agencies can invest in their debt
obligations; the International Bank for Reconstruction and Development (IBRD), International
Finance Corporation (IFC) and Inter-American Development Bank (IADB).
TREASURY BILLS: A non-interest-bearing discount security issued by the U.S. Treasury to finance
the national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct
obligations of the U.S. Government and having initial maturities of over 10 years.
TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct
obligations of the U.S. Government and having initial maturities from one to 10 years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member
firms as well as nonmember broker-dealers in securities maintain a maximum ratio of
indebtedness to liquid capital of 15-1; also, called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to
purchase securities. Liquid capital includes cash and assets easily converted to cash without
penalty.
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Statement of Investment Policy Page 19
YIELD: The rate of annual income return on an investment, expressed as a percentage.
YIELD TO MATURITY: The current income yield on an investment, minus any premium above
par, or plus any discount from par in the purchase price with the adjustment spread over the
period from date of purchase to maturity of the bond.
Page 28
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Page 29
RANCHO CUCAMONGA FIRE PROTECTION DISTRICT
STATEMENT OF INVESTMENT POLICY
TABLE OF CONTENTS
Introduction ........................................................................................................ 1
Scope .................................................................................................................. 1
Delegation of Authority ................................................................................... 1-2
Prudence ............................................................................................................ 2
Objective ......................................................................................................... 2-3
Ethics and Conflicts of Interest ......................................................................... 3-4
Authorized Financial Dealers and Institutions ..................................................... 4
Authorized and Suitable Investments .............................................................. 4-8
Prohibited Investments ....................................................................................... 8
Review of Investment Portfolio .......................................................................... 8
Investment Pools ............................................................................................. 8-9
Collateralization .................................................................................................. 9
Safekeeping and Custody .................................................................................... 9
Diversification ................................................................................................... 10
Maximum Maturities ........................................................................................ 10
Internal Control ................................................................................................ 10
Performance ................................................................................................ 10-11
Reporting .......................................................................................................... 11
Investment Policy Adoption .............................................................................. 12
Glossary ....................................................................................................... 13-19
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Statement of Investment Policy Page 1
RANCHO CUCAMONGA FIRE PROTECTION DISTRICT
STATEMENT OF INVESTMENT POLICY
1.0 INTRODUCTION
This Statement of Investment Policy (“Policy”) provides guidelines for the prudent investment of
the Rancho Cucamonga Fire Protection District’s (“District”) idle cash and outlines the policies
essential to ensuring the safety and financial strength of the District’s investment portfolio. This
Policy is based on the principles of prudent money management and conforms to all federal,
state, and local laws governing the investment of public funds. The goal of this Policy is to
enhance the economic status of the District by protecting its pooled cash and to invest public
funds to:
1. Meet the daily cash flow needs of the District;
2. Comply with all laws of the State of California regarding investment of public funds; and
3. Achieve a reasonable rate of return while minimizing the potential for capital losses
arising from market changes or issuer default.
2.0 SCOPE
This Policy applies to the investment activities of all funds of the Rancho Cucamonga Fire
Protection District. These funds are accounted for in the City’s Comprehensive Annual Financial
Report (CAFR) and include: General Fund, Special Revenue Funds, Debt Service Funds, Capital
Project Funds, Proprietary Funds, as well as Agency Funds and a Private-Purpose Trust Fund.
Bond proceeds shall be invested in accordance with the requirements and restrictions outlined
in bond documents as approved by the President and Members of the Board of Directors. If the
bond documents are silent as to the permitted investments, the bond proceeds will be invested
in the securities permitted by this Policy. Notwithstanding the other provisions of this Policy, the
percentage limitations listed elsewhere in this Policy do not apply to bond proceeds.
3.0 DELEGATION OF AUTHORITY
The President and Members of the Board of Directors, as permitted under California Government
Code §53607, delegate the responsibility to manage the District’s investment portfolio to the
District Treasurer for a period of one-year, unless revoked. Subject to review, the President and
Members of the Board of Directors may renew the delegation of authority each year. The District
Treasurer shall be responsible for all transactions undertaken and shall establish a system of
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Statement of Investment Policy Page 2
controls to regulate the activities of subordinate officials, and their procedures, in the absence
of the District Treasurer. Pursuant to Government Code §1190, the District Treasurer appoints
the Finance Director to act as Deputy Treasurer with responsibility to manage the District’s
investment portfolio on a daily basis. The District Treasurer/Deputy Treasurer will maintain on
file a written authorization designating those individuals to whom daily investment activities,
such as carrying out the District Treasurer's/Deputy Treasurer’s investment instructions,
confirming treasury transactions, and other routine activities, have been delegated.
As authorized by the President and Members of the Board of Directors, the District may also
utilize the services of an independent investment advisor to assist with the investment program
under the supervision of the District Treasurer/Deputy Treasurer. The investment advisor shall
follow this Policy and such other written instructions as are provided by the District. The
investment advisor shall never take possession of the District’s funds or assets.
4.0 PRUDENCE
All persons authorized to make investment decisions on behalf of the District are trustees and
therefore fiduciaries subject to the prudent investor standard, as described in Government Code
section 53600.3 which states:
When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing
public funds, a trustee shall act with care, skill, prudence, and diligence under the
circumstances then prevailing, including, but not limited to, the general economic
conditions and the anticipated needs of the agency, that a prudent person acting in a like
capacity and familiarity with those matters would use in the conduct of funds of a like
character and with like aims, to safeguard the principal and maintain the liquidity needs
of the agency.
The District Treasurer/Deputy Treasurer and authorized persons acting in accordance with this
Policy and the “prudent investor” standard and exercising due diligence shall be relieved of
personal responsibility for an individual security’s credit risk or market price changes, provided
deviations from expectations are reported in a timely manner and appropriate action is taken to
control adverse developments, whenever possible.
5.0 OBJECTIVE
The objective of the investment portfolio is to meet the short- and long-term cash flow demands
of the District. To achieve this objective, the portfolio will be structured to provide safety of
principal and liquidity, while then providing a reasonable return on investments.
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The authority governing investments for municipal governments is set forth in Government Code
Sections 53600 et seq. District strategy has been to limit investments more stringently than
required under state law. The primary objectives of investment activities, in order of priority are:
1. Safety - Safety and risk associated with an investment refers to the potential loss of
principal, interest, or combination thereof. The District only invests in those instruments
that are considered safe. Each investment transaction shall be undertaken in a manner
that seeks to ensure, whenever possible, that all capital losses are avoided, whether from
securities default, broker/dealer default, or erosion of market value. The District shall
seek to preserve principal by mitigating two types of risk: credit risk and market risk.
• Credit risk, defined as the risk of loss due to failure of the issuer of a security, shall be
mitigated by investing in only very safe securities and by diversifying the investment
portfolio so that the failure of any one issuer would not unduly harm the District’s
cash flow.
• Market risk, defined as the risk of market value fluctuations due to overall changes in
the general level of interest rates, shall be mitigated by structuring the portfolio to
align with the District’s anticipated cash flow needs. It is explicitly recognized,
however, that in a diversified portfolio, occasional measured losses may occur and
must be considered within the context of overall investment return and liquidity
needs.
2. Liquidity - Liquidity is an important investment quality especially when the need for
unexpected funds occasionally occurs. The District’s investment portfolio will remain
sufficiently liquid to enable the District to meet operating requirements that might be
reasonably anticipated.
3. Yield - The District’s investment portfolio shall be designed with the objective of attaining
a reasonable market rate of return throughout budgetary and economic cycles,
commensurate with the District’s investment risk constraints as long as it does not
diminish the objectives of Safety and Liquidity.
6.0 ETHICS AND CONFLICTS OF INTEREST
The District Treasurer/Deputy Treasurer and employees involved in the investment process shall
refrain from personal business activity that could conflict with proper execution of the
investment program, or which could impair their ability to make impartial investment decisions.
Employees and investment officers shall disclose any material financial interest in financial
institutions that conduct business with the District, and they shall further disclose any personal
financial/investment positions that could be affected by the performance of the District’s
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operations and functions or by the management of the District’s investment program. The
District Treasurer/Deputy Treasurer and investment employees are required to file annual
disclosure statements as required by the Fair Political Practices Commission (FPPC).
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The District Treasurer/Deputy Treasurer shall only execute investment transactions with those
direct issuers authorized by this Policy (LAIF, LGIPs, money market funds, and banks). All other
investment transactions will be conducted through the District’s investment advisor who will
maintain their own list of approved issuers, brokers/dealers, and financial institutions with which
to conduct transactions on the District’s behalf.
8.0 AUTHORIZED AND SUITABLE INVESTMENTS
In the event an apparent discrepancy is found between this Policy and the Government Code,
the more restrictive parameters will take precedence. Percentage holding limits listed in this
Policy apply at the time the security is purchased. Credit ratings, where shown, specify the
minimum credit rating category required at purchase. In the event a security held by the District
is subject to a credit rating change that brings it below the minimum credit ratings specified in
this Policy, the District Treasurer/Deputy Treasurer should notify the President and Members of
the Board of Directors of the change in the next monthly investment report. The course of action
to be followed will then be decided on a case-by-case basis, considering such factors as the
reason for the change, prognosis for recovery or further rate drops, and the market price of the
security. Any security not listed in Section 8.0 is not a valid investment for the District. The concise
list of approved securities is as follows:
• United States Treasury Securities: United States Treasury Bills, Bonds, and Notes or those
instruments for which the full faith and credit of the United States are pledged for payment
of principal and interest.
There is no limit on the percentage of the portfolio that can be invested in this category.
• United States Federal Agencies: Obligations issued by Federal Agencies or United States
government-sponsored enterprise obligations, participations, or other instruments, including
those issued by or fully guaranteed as to principal and interest by federal agencies or United
States government-sponsored enterprises.
There is no limit on the percentage of the portfolio that can be invested in this category.
• Supranational Securities: United States dollar denominated senior unsecured
unsubordinated obligations issued or unconditionally guaranteed by the International Bank
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for Reconstruction and Development, International Finance Corporation, or Inter-American
Development Bank. The maximum remaining maturity for supranational obligations must be
five years or less, and they must be eligible for purchase and sale within the United States.
These investments must be rated in a rating category of “AA” or better by a NRSRO.
There is a 30% limit on the percentage of the portfolio that can be invested in this category.
The maximum remaining maturity of any investment in this category shall not exceed five-
years.
• Municipals Notes or Bonds: Registered state warrants or treasury notes or bonds of this
state, including bonds payable solely out of the revenues from a revenue-producing property
owned, controlled, or operated by the state or by a department, board, agency, or authority
of the state.
Registered treasury notes or bonds of any of the other 49 states in addition to California,
including bonds payable solely out of the revenues from a revenue-producing property
owned, controlled, or operated by a state or by a department, board, agency, or authority of
any of the other 49 states, in addition to California.
Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state,
including bonds payable solely out of the revenues from a revenue-producing property
owned, controlled, or operated by the local agency, or by a department, board, agency, or
authority of the local agency.
Purchases are limited to securities rated in a rating category of “A” (long-term) or “A-1”
(short-term) or their equivalents or better by a Nationally Recognized Statistical Rating
Organization (“NRSRO”). (The minimum rating shall apply to any issuer, irrespective of any
credit enhancement).
There is a 30% limit on the percentage of the portfolio that can be invested in this category.
• Negotiable Certificates of Deposit: Negotiable certificates of deposit issued by a nationally
or state-chartered bank, a savings association or a federal association, a state or federal credit
union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases are
limited to securities rated in a rating category of “A” (long-term) or “A-1” (short-term) or their
equivalents or better by an NRSRO.
There is a 30% limit on the percentage of the portfolio that can be invested in this category.
• Asset-Backed Securities: A mortgage passthrough security, collateralized mortgage
obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate,
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consumer receivable passthrough certificate, or consumer receivable-backed bond.
Securities shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO.
There is a 20% limit on the percentage of the portfolio that can be invested in this category.
The maximum remaining maturity of any investment in this category shall not exceed five-
years.
• Medium-Term Notes: Medium-Term Notes are defined as all corporate and depository
institution debt securities. They must be issued by corporations organized and operating
within the United States. Notes eligible for investment shall be rated in a rating category of
“A” or its equivalent or better by an NRSRO.
There is a 30% limit on the percentage of the portfolio that can be invested in this category.
The maximum remaining maturity of any investment in this category shall not exceed five-
years.
• Bankers’ Acceptances: Bankers’ acceptances, otherwise known as bills of exchange or time
drafts, that are drawn on and accepted by a commercial bank. Purchases are limited to issuers
that have short-term debt rated in a rating category of “A-1” or its equivalent or higher by an
NRSRO.
There is a 40% limit on the percentage of the portfolio that can be invested in this category.
The maximum maturity shall not exceed 180 days.
• Commercial Paper: Must be of “prime” quality of the highest ranking or of the highest letter
and number rating as provided for by an NRSRO.
The entity that issues the commercial paper shall meet all the following conditions: (i) is
organized and operating in the United States as a general corporation, (ii) has total assets in
excess of five hundred million dollars ($500,000,000), and (iii) has debt other than
commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher
by an NRSRO.
There is a 25% limit on the percentage of the portfolio that can be invested in this category.
The maximum maturity shall not exceed 270 days.
• Repurchase Agreements (Repos): An executed Master Repurchase Agreement is required
between the Rancho Cucamonga Fire Protection District and the broker dealer or financial
Institution. The market value of securities that underlies a repurchase agreement shall be
valued at 102 percent or greater of the funds borrowed against those securities and the value
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shall be adjusted no less than quarterly. Collateral is restricted to U.S. Treasury and Federal
Agency securities.
There is a 20% limit on the percentage of the portfolio that can be invested in this category.
The maximum maturity of any investment in this category shall not exceed one year.
• State of California Local Agency Investment Fund (LAIF): The Local Agency Investment Fund
(LAIF) is a State of California managed investment pool established by the State Treasurer for
the benefit of local agencies.
There is no limit on the percentage of the portfolio that can be invested in this category. The
maximum investment in LAIF accounts is dependent upon limits established under the Local
Agency Investment Fund guidelines and not Government Code.
• Joint Powers Authority (JPA) Investment Pool: Shares of beneficial interest issued by a joint
powers authority organized pursuant to Section 6509.7 that invests in the securities and
obligations authorized in Government Code. Whenever the District has any funds invested in
a LGIP, the District Treasurer/Deputy Treasurer shall maintain on file a copy of the LGIP’s
current information statement and periodically review the LGIP’s investments.
There is no limit on the percentage of the portfolio that can be invested in this category.
• Money Market Funds (“MMF”): Government Money Market Funds meeting either of the
following criteria: (A) Attained the highest ranking or the highest letter and numerical rating
provided by not less than two NRSROs, or (B) Retained an investment advisor with not less
than five years’ experience and registered or exempt from registration with the SEC, with
assets under management in excess of five hundred million dollars ($500,000,000).
Whenever the District has any funds invested in an MMF, the District Treasurer/Deputy
Treasurer shall maintain on file a copy of the MMF’s current information statement. A
maximum of 20% of the District’s portfolio may be invested in this category.
There is a 20% limit on the percentage of the portfolio that can be invested in this category.
• Bank Deposits: FDIC insured or collateralized demand deposit accounts, savings accounts,
market rate accounts, certificates of deposits and other types of bank deposits in financial
institutions located in California. The amount on deposit in any financial institution shall not
exceed the shareholder's equity. To be eligible to receive District deposits, the financial
institution must have received a minimum overall satisfactory rating, under the Community
Redevelopment Act, for meeting the credit needs of California Communities in its most recent
evaluation. Bank deposits are required to be collateralized as specified under Government
Code Section 53630 et seq. The District Treasurer/Deputy Treasurer, at his/her discretion,
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may waive the collateralization requirements for any portion that is covered by federal
deposit insurance. The District shall have a signed agreement with any depository accepting
District funds per Government Code Section 53649. There is no limit on the percentage of the
portfolio that may be invested in this category.
There is no limit on the percentage of the portfolio that can be invested in this category.
However, a maximum of 10 percent of the portfolio may be invested in time deposits.
9.0 PROHIBITED INVESTMENTS
Any security type or structure not specifically approved by this policy is hereby specifically
prohibited. Security types which are thereby prohibited include, but are not limited to, inverse
floaters, derivatives, range notes, interest only strips that are derived from a pool of mortgages,
or in any investment that could result in zero interest accrual if held to maturity.
10.0 REVIEW OF INVESTMENT PORTFOLIO
The securities held by the District must be in compliance with Section 8.0 “Authorized and
Suitable Investments” at the time of purchase. If, subsequent to the date of purchase, a security
is determined to be no longer in compliance with Section 8.0, the District’s Treasurer/Deputy
Treasurer shall report the non-compliant security to the President and Members of the Board of
Directors and shall include a disclosure in the monthly Investment Report if the security is held
at the date the report is prepared.
The City’s external, independent auditors perform an annual review of the District’s Investment
Policy, investment process, and related internal controls. The annual review process is
performed as part of the City’s annual external financial audit.
11.0 INVESTMENT POOLS
The Local Agency Investment Fund (LAIF) is a voluntary investment alternative for California’s
local governments and special districts authorized by the California Government Code. LAIF is a
State of California managed investment pool established by the State Treasurer for the benefit
of local agencies.
The District’s participation in LAIF was approved by the President and Members of the Board of
Directors with other authorized investments in July 1987. It is a permitted investment with the
knowledge that the fund may invest in some vehicles allowed by statute but not otherwise
authorized under the District’s authorized investments. All securities in LAIF are purchased under
the authority of Government Code Sections 16430 and 16480. All investments are purchased at
market value, and market valuation is conducted monthly.
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The District may also invest in shares of beneficial interest issued by a joint powers authority
(“JPA”) organized pursuant to Section 6509.7 of the California Government Code that invests in
the securities and obligations specified in the code and which shall retain an investment advisor
that meets the following criteria:
1. Be registered or exempt from registration with the Securities and Exchange Commission;
2. Have assets under management in excess of five hundred million dollars ($500,000,000),
and
3. Have not less than five (5) years of experience investing in the securities and obligations
authorized herein.
12.0 COLLATERALIZATION
All bank deposits must be FDIC insured or collateralized in accordance with Government Code
Section 53630 et seq.
13.0 SAFEKEEPING AND CUSTODY
To protect against potential losses by the collapse of individual securities dealers, all trades will
be transacted on a delivery-versus-payment (DVP) basis. This means that the securities shall be
delivered to the District’s designated custodian upon receipt of the payment by the District. The
securities shall be held in safekeeping by a third-party custodian, acting as agent for the District
under the terms of a custody agreement executed by the bank and District. The third-party
custodian shall be required to issue a monthly safekeeping report to the District that lists the
specific investment, rate, maturity and other pertinent information.
The only exception to the foregoing shall be depository accounts and security purchases made
with investment pools and certificates of deposit since the purchased securities are not
deliverable. Evidence of these investments will be held in the City’s vault. No outside
broker/dealer or advisor may have access to District funds, accounts or investments, and any
transfer of funds to or through an outside broker/dealer must be approved by the District
Treasurer/Deputy Treasurer.
The City strives to maintain the level of investment of all funds as near 100% as possible, through
daily and projected cash flow determinations. Idle cash management and investment
transactions are the responsibility of the District Treasurer/Deputy Treasurer.
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14.0 DIVERSIFICATION
It is the policy of the District to diversify its investment portfolio. Assets shall be diversified to
eliminate the risk of loss resulting from over-concentration of assets in a specific issuer, security
type, and maturities. Diversification strategies shall be determined and revised periodically. The
purpose of diversifying is to reduce overall portfolio risks while attaining an average market rate
of return; therefore, it needs to be conceptualized in terms of maturity, instrument types and
issuer. To promote diversification, no more than 5% of the portfolio may be invested in the
securities of any one issuer, regardless of security type; excluding U.S. Treasuries, federal
agencies, supranationals, and pooled investments such as LAIF, money market funds, or local
government investment pools.
15.0 MAXIMUM MATURITIES
To the extent possible, the District will attempt to match security maturities to anticipated cash
flow requirements. Where this Policy does not list a specific maturity limit, this Policy permits up
to 10% of the portfolio to be invested in securities with remaining maturities between 5 and 10
years (this provision takes effect 3 months after June 16, 2022).
16.0 INTERNAL CONTROL
The District Treasurer/Deputy Treasurer is responsible for establishing and maintaining an
internal control structure designed to ensure that the assets of the District are protected from
loss, theft or misuse. The procedures should include references to individuals authorized to
execute transactions or transfers, safekeeping agreements, repurchase agreements, wire
transfer agreements, collateral/depository agreements and banking services contracts, as
appropriate. The internal control structure shall be designed to provide reasonable assurance
that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost
of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and
benefits requires estimates and judgement by management. The District Treasurer/Deputy
Treasurer shall establish an annual process of independent review by an external auditor. This
review will provide internal control by assuring compliance with policies and procedures set forth
in this Policy. Also, see Section 9.0 of this Policy.
17.0 PERFORMANCE
The investment performance of the District’s operating portfolio shall be evaluated and
compared to an appropriate benchmark in order to assess the success of the investment program
relative to the City’s Safety, Liquidity, and Yield objectives. This review will be conducted annually
with the District’s Treasurer, and Finance Director, and, if necessary, consideration will be given
to making adjustments to future investment strategies as market conditions permit.
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18.0 REPORTING
The District Treasurer shall prepare and submit a monthly investment report to the President and
Members of the Board of Directors and City Manager, which shall include all securities, excluding
those held by and invested through trustees. The report shall include the following:
• A monthly report of transactions.
• The type of investment, name of the issuer, date of purchase, date of maturity, par and dollar
amount invested in all securities.
• The weighted average maturity of the investments.
• Any funds, investments, or programs including loans that are under the management of
contracted parties.
• A description of the compliance with this Policy.
• A statement of the District’s ability to meet its pooled expenditure requirements for the next
six months or provide an explanation as to why sufficient money shall or may not be available.
• The investment portfolio report shall include current market value information for all
investments. A monthly market value will be obtained for each security owned by the District.
For purposes of reporting, the market value of each security may be obtained from the
District’s custodian bank or other pricing source(s) utilized by the District’s investment
advisor.
The District Treasurer shall be responsible for reviewing and modifying investment guidelines as
conditions warrant and is required to submit same for re-approval to the President and Members
of the Board of Directors on an annual basis with or without changes. However, the District
Treasurer may, at any time, further restrict the items approved for purchase as deemed
appropriate.
The basic premise underlying the District’s investment philosophy is, and will continue to be, to
ensure that money is always safe and available when needed
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GLOSSARY OF TERMS
The glossary is provided for general information only. It is not to be consider a part of the Policy
for determining Policy requirements or terms.
AGENCIES: Agencies of or sponsored by the Federal government set up to supply credit to various
classes of institutions. Examples include Federal Home Loan Banks (FHLB), Federal Farm Credit
Bank (FFCB), Federal Home Loan Mortgage Corporation (FHLMC), and Federal National Mortgage
Association (FNMA).
ASKED: The price at which securities are offered by a selling party to a buying party.
ASSET-BACKED SECURITIES (ABS): Securities whose income payments and hence value is
derived from and collateralized (or "backed") by a specified pool of underlying assets which are
receivables. The pools of underlying assets can comprise common payments credit cards, auto
loans, mortgage loans, and other types of assets. Interest and principal are paid to investors
from borrowers who are paying down their debt.
BANKERS’ ACCEPTANCE (BA): A draft, bill, or exchange accepted by a bank or trust company.
The accepting institution guarantees payment of the bill, as well as the issuer.
BASIS POINT: One basis point is one-hundredth of a percent (i.e., 0.01%).
BEAR MARKET: A period of generally pessimistic attitudes and declining market prices.
BENCHMARK: A comparative base for measuring the performance or risk tolerance of the
investment portfolio. A benchmark should represent a close correlation to the level of risk and
the average duration of the portfolio’s investments.
BID: The price offered by a buyer of securities. (When selling securities, you ask for a bid.)
BOND EQUIVALENT YIELD: The basis on which yields on notes and bonds are quoted.
BOOK VALUE (COST VALUE): The value at which a debt security is shown on the holder’s balance
sheet. Book value is acquisition cost less amortization of premium or accretion of discount.
BROKER/DEALER: An individual or firm that brings buyers and sellers together in a securities
transaction.
BULL MARKET: A period of generally optimistic attitudes and increasing market prices.
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CALLABLE SECURITIES: A security that is redeemable by the issuer before the scheduled maturity.
Bonds are usually called when the interest rates fall so significantly that the issuer can save
money by floating new bonds at lower rates.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate.
Large denomination CD’s are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to
secure repayment of a loan. Also, refers to securities pledged by a bank to secure deposits of
public monies.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of the City of
Rancho Cucamonga. It includes five combined statements for each individual fund and account
group prepared in conformity with Generally Accepted Accounting Principles (GAAP). It also
includes supporting schedules necessary to demonstrate compliance with GAAP, finance-related
legal and contractual provisions, extensive introductory material, and a detailed Statistical
Section.
CORPORATE MEDIUM-TERM NOTE: Corporate and depository institution debt securities with a
maximum remaining maturity of five years or less, issued by corporations organized and
operating within the United States or by depository institutions licensed by the United States or
any state and operating within the United States.
COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on
the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment
date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling
for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with a simultaneous exchange of
money for the securities.
DERIVATIVES: Financial products dependent for their value on (or derived from) an underlying
financial instrument, a commodity, or an index.
DISCOUNT: The difference between the cost price of a security and its maturity when quoted at
lower than face value. A security selling below original offering price shortly after sale also is at
a discount.
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DISCOUNT SECURITIES: Non-interest bearing, money market instruments that are issued at a
discount and redeemed at maturity for full face value, e.g. U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent
returns.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank
deposits up to $250,000 per deposit.
FEDERAL FUNDS RATE: The interest rate charged by one institution lending federal funds to
another.
FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12
regional banks), which lend funds and provide correspondent banking services to member
commercial banks, thrift institutions, credit unions and insurance companies. The mission of the
FHLBs is to liquefy the housing related assets of its members who must purchase stock in their
district bank.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under
the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working
under the auspices of the Department of Housing and Urban Development (HUD). It is the largest
single provider of residential mortgage funds in the United States. Fannie Mae, as the
corporation is called, is a private stockholder-owned corporation. The corporation’s purchases
include a variety of adjustable mortgages, second loans, and fixed-rate mortgages. FNMA’s
securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all
security holders will receive timely payment of principal and interest.
FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal
Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New
York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating
basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases
and sales of Government Securities in the open market to influence the volume of bank credit
and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and
comprising a seven-member Board of Governors in Washington, D.C., 12 regional banks and
about 5,700 commercial banks that are members of the system.
GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): The independent organization
that establishes and improves standards of accounting and financial reporting for the United
States, state and local governments.
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GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities
influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers,
commercial banks, savings and loan associations, and other institutions. Security holder is
protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by
the FHA, VA, or FMHM mortgages. The term “pass-through” is often used to describe Ginnie
Maes.
INTEREST ONLY STRIP: Investments created by separating the principal and interest portions of
a debt security or pool of securities into separate investments. Interest only strips are most
common with mortgage-backed securities. The investor benefits if interest rates rise and
principal repayments slow, but if interest rates fall and principal repayments accelerate, the
investor will receive less interest. Once the principal amount has been repaid, interest payments
stop, and the value of an interest only strip falls to zero.
INVERSE FLOATER: Debt securities that have a floating coupon rate that adjusts inversely to
movements in a benchmark interest rate. They can offer a hedge against falling interest
rates. However, the structure of these investments can magnify changes in the security’s market
value. Furthermore, if interest rates rise, the investor may end up with a security that pays little
to no interest with a diminished security value.
INVESTMENT AGREEMENTS: An agreement with a financial institution to borrow public funds
subject to certain negotiated terms and conditions concerning collateral, liquidity, and interest
rates.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a
substantial loss.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions
that are placed in the custody of the State Treasurer for investment and reinvestment.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): A type of pooled investment program formed
by a joint powers authority in which funds from its local agency investors are aggregated together
for investment purposes.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or
sold.
MARKET RATE OF RETURN: A rate of return commensurate with the market for similar securities
(maturity, credit rating, duration and liquidity) would be considered a market rate of return.
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MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between
the parties to repurchase–reverse, repurchase agreements that establishes each party’s rights in
the transactions. A master agreement will often specify, among other things, the right of the
buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY: The date upon which the principal or stated value of an investment becomes due
and payable.
MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper,
bankers’ acceptances, etc.) are issued and traded.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): A credit rating
agency approved by the U.S. Securities and Exchange Commission (SEC) that provides credit
ratings that are used by the U.S. government and investors as benchmarks. Examples include
Standard & Poor’s Corporation, Moody’s Investor Services, Inc. and Fitch, Inc.
OFFER: The price asked by a seller of securities. (When buying securities, you ask for an offer.)
OPEN MARKET OPERATIONS: Federal Reserve activity. Under the Federal Reserve Act, the Fed
uses purchases and sales of Government and Federal Agency securities to add to or subtract from
commercial bank reserves. Goals are to sustain economic growth, high employment and
reasonable price stability.
PAPER GAIN OR LOSS: Term used for unrealized gain or loss on securities being held in a portfolio
based on comparison of current market quotes and their original cost. This situation exists if the
security is held while there is a difference between cost value (book value) and the market value.
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of market
activity, positions and monthly financial statements to the Federal Reserve Bank of New York and
are subject to its informal oversight. Primary dealers include Securities and Exchange
Commission (SEC) registered securities broker/dealers, banks and a few unregulated firms.
PRUDENT INVESTOR STANDARD: An investment standard to be followed by those authorized to
make investment decisions on behalf of a local agency. Those authorized shall act with care, skill,
prudence, and diligence under the circumstances then prevailing, including, but not limited to,
the general economic conditions and the anticipated needs of that agency.
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Statement of Investment Policy Page 18
RANGE NOTE: A structured investment that pays interest as long as a benchmark interest rate is
within a specified interest rate range. These securities provide higher than market interest rates,
but the investor will not receive any interest if the benchmark interest rate moves outside the
specified range. The investor is betting interest rates will remain relatively stable.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current
market price. This may be the amortized yield to maturity on a bond; the current income return.
SAFEKEEPING: The service to customers by banks and trust companies when the bank or trust
company stores the securities for protection, receives coupon payments and redeems issues at
maturity.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following
the initial distribution of securities.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in
securities transactions by administering securities legislation.
SEC RULE 15(C) 3-1: See Uniform Net Capital Rule.
SUPRANATIONALS: Development banks that share the same goal of providing an improved
standard of living in their member countries, but each having different mandates. There are
three banks (supranationals) in which California local agencies can invest in their debt
obligations; the International Bank for Reconstruction and Development (IBRD), International
Finance Corporation (IFC) and Inter-American Development Bank (IADB).
TREASURY BILLS: A non-interest-bearing discount security issued by the U.S. Treasury to finance
the national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct
obligations of the U.S. Government and having initial maturities of over 10 years.
TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct
obligations of the U.S. Government and having initial maturities from one to 10 years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member
firms as well as nonmember broker-dealers in securities maintain a maximum ratio of
indebtedness to liquid capital of 15-1; also, called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to
purchase securities. Liquid capital includes cash and assets easily converted to cash without
penalty.
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Statement of Investment Policy Page 19
YIELD: The rate of annual income return on an investment, expressed as a percentage.
YIELD TO MATURITY: The current income yield on an investment, minus any premium above
par, or plus any discount from par in the purchase price with the adjustment spread over the
period from date of purchase to maturity of the bond.
Page 49
DATE:June 16, 2022
TO:Mayor and Members of the City Council
President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY:Tamara L. Oatman, Finance Director
SUBJECT:Consideration to Approve the Following to be in Compliance with
Governmental Accounting Standards Board (GASB) Statement No. 54: 1)
Updated Fund Balance Policy; 2) a Resolution Committing to the Level of
Fiscal Reserves for the City of Rancho Cucamonga; and 3) a Resolution
Committing to the Level of Fiscal Reserves for the Rancho Cucamonga
Fire Protection District. (RESOLUTION NO. 2022-092 AND
RESOLUTION NO. FD 2022-021) (CITY/FIRE)
RECOMMENDATION:
It is recommended that the City Council/Board of Directors approve the following to be in
compliance with Governmental Accounting Standards Board (GASB) Statement No. 54: 1)
updated Fund Balance Policy; 2) a Resolution committing to the level of fiscal reserves for the
City of Rancho Cucamonga (City); and 3) a Resolution committing to the level of fiscal reserves
for the Rancho Cucamonga Fire Protection District (District).
BACKGROUND:
On a regular basis, the Governmental Accounting Standards Board (GASB) adopts new policies
and procedures that apply to public entities. In February 2009, GASB issued Statement No. 54,
which applies to Fund Balance Reporting and Governmental Fund Type Definitions (GASB
54). Since 2011, in order to be in compliance with GASB 54, the City Council/Board of Directors
has approved a Fund Balance Policy and a resolution committing to the level of reserves for the
City of Rancho Cucamonga and for the Rancho Cucamonga Fire Protection District.
ANALYSIS:
In order to accommodate any changes to these commitments that may become necessary due
to changes in operations or changes in City Council goals, staff will annually bring this policy and
resolution before the City Council/Board of Directors for approval at the end of each fiscal
year. The following updates (City- and District-related) have been made to the policy:
The fund balance committed for Employee Leave Payouts was enhanced to include
applicable fringe benefits (Medicare) and the annual allocation from the City’s Cost
Allocation Plan (CAP). (City and District)
A new committed fund balance was created for Community Benefit Projects for funds
received from projects that include a development agreement which are committed for
addressing projects’ expected impacts on affordable housing demand, future
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3
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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. (City)
A new committed fund balance was created for Public Safety Personnel Affordable
Housing. This reserve represents a portion of the Fire District’s fund balance committed
to provide additional funding to match the City’s contributions to help with the creation of
affordable for-sale housing for public safety personnel including but not limited to Fire
District employees. Funding may be used for silent seconds, closing costs, assistance
with obtaining financing, or to help buy down the cost of design and construction of single-
family housing units. The funding goal for this reserve is established as the value of the
affordability gap to construct 50 housing units that are affordable at the 60% California
Tax Credit Allocation Committee (TCAC) median income with a 4% tax credit scenario
per unit, or $192,600 per unit, for a total funding goal of $9,630,000. The affordability
gap was determined as part of the Non-Residential Linkage Fee Nexus Study dated
October 5, 2021, prepared by Keyser Marston Associates, Inc. (District)
The Fund Balance Policy, in conjunction with the City General Fund Reserve Funding Goals
Policy, provides guidelines for building City/District reserves in support of future needs for capital
replacement, resiliency in the event of an economic downturn, and planned enhancements to the
services and facilities available to the citizens of Rancho Cucamonga.
The Fund Balance Policy is presented to the City Council/Board of Directors for review and
approval. The attached Resolutions formally establish the City of Rancho Cucamonga’s and the
Rancho Cucamonga Fire Protection District’s fund balance commitments for the fiscal year ending
June 30, 2022.
FISCAL IMPACT:
None.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
The approval of the Fund Balance Policy and accompanying Resolutions supports the City
Council’s core value of providing and nurturing a high quality of life for all by demonstrating the
active, prudent fiscal management of the City’s financial resources in order to support the various
services the City provides to all Rancho Cucamonga stakeholders.
ATTACHMENTS:
Attachment 1 - Fund Balance Policy
Attachment 2 - Resolution (City)
Attachment 3 - Resolution (Fire)
Page 51
PURPOSE
This Fund Balance Policy establishes the procedures for the reporting of unrestricted fund
balance in the City General Fund and Fire District financial statements. Certain commitments
and assignments of fund balance will help ensure that there will be adequate financial resources
to protect the City against unforeseen circumstances and events such as revenue shortfalls and
unanticipated expenditures. The policy also authorizes and directs the Finance Director to
prepare financial reports which accurately categorize fund balance as per Governmental
Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions.
GENERAL POLICY
Fund balance is essentially the difference between the assets and liabilities reported in a
governmental fund. There are five separate components of fund balance, each of which identifies
the extent to which the City/Fire District is bound to honor constraints on the specific purposes for
which amounts can be spent.
Nonspendable fund balance (inherently nonspendable)
Restricted fund balance (externally enforceable limitations on use)
Committed fund balance (self-imposed limitations on use)
Assigned fund balance (limitation resulting from intended use)
Unassigned fund balance (residual net resources)
The first two components listed above are not addressed in this policy due to the nature of their
restrictions. An example of nonspendable fund balance is inventory. Restricted fund balance is
either imposed by law or constrained by grantors, contributors, or laws or regulations of other
governments. This policy is focused on financial reporting of unrestricted fund balance, or the
last three components listed above. These three components are further defined below.
Committed Fund Balance
The City Council (which also acts as the Board of Directors for the Rancho Cucamonga Fire
Protection District), as the City’s highest level of decision-making authority, may commit fund
CITY OF RANCHO CUCAMONGA
RANCHO CUCAMONGA FIRE
PROTECTION DISTRICT
FUND BALANCE POLICY
POLICY NO.: ___-__
EFFECTIVE: June 15, 2011
REVISED: June 16, 2022
APPROVED:
ATTACHMENT 1Page52
FUND BALANCE POLICY
PAGE 2 OF 5
balance for specific purposes pursuant to constraints imposed by formal actions taken, such as
an ordinance or resolution. These committed amounts cannot be used for any other purpose
unless the City Council/Fire Board removes or changes the specified use through the same type
of formal action taken to establish the commitment. City Council/Fire Board action to commit fund
balance needs to occur within the fiscal reporting period; however, the amount can be determined
subsequently.
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.
City Facilities Capital Repair
The City’s General Fund balance committed for City facilities capital repair and property
acquisition is established at a minimum goal of 50% of capital assets value comprised of
construction in progress (excluding infrastructure), building improvements, and
improvements other than building for governmental activities, excluding assets owned by
the Rancho Cucamonga Fire Protection District.
Fire District Facilities Capital Repair
The Fire District’s fund balance committed for the Fire District facilities capital repair is
hereby committed to a minimum goal of 50% of capital assets value comprised of
construction in progress (excluding infrastructure), building improvements, and
improvements other than building for public safety-fire activities.
Working Capital
The City’s General Fund balance committed for Working Capital is established at a goal
of a minimum 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
goal of a minimum 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 Workers’ Compensation, General Liability, and Employment Practices Liability
claims is established at a minimum goal of eight times the City’s and the District’s total
yearly SIRs for all types of insurance coverage.
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FUND BALANCE POLICY
PAGE 3 OF 5
PASIS Workers’ Compensation Tail Claims
The Fire District’s fund balance committed for payment of outstanding Workers’
Compensation claims remaining after the District’s withdrawal from PASIS is established
at a goal equal to the most recent fiscal year end Claims Cost Detail Report from the
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 as valued in accordance with the City’s labor contracts as of the
last day of the fiscal year, including applicable fringe benefits (Medicare) and the annual
allocation from the City’s Cost Allocation Plan (City only).
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 District’s replacement criteria is established at a
minimum goal of 50% of District vehicle and equipment replacement value.
Law Enforcement
The City’s General Fund balance committed for public safety purposes, including
operations, equipment, capital outlay, capital facilities, 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,
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FUND BALANCE POLICY
PAGE 4 OF 5
electric vehicle charging, reduction in vehicle miles traveled, pedestrian safety
improvements, carbon capture, alternative energy production, noise reduction,
environmental justice, and related impacts typically associated with, but not limited to,
large warehouse, industrial, and commercial developments.
Public Safety Personnel Affordable Housing
A portion of the Fire District’s fund balance committed to provide additional funding to
match the City’s contributions to help with the creation of affordable for-sale housing for
public safety personnel including but not limited to Fire District employees. Funding may
be used for silent seconds, closing costs, assistance with obtaining financing, or to help
buy down the cost of design and construction of single-family housing units. The funding
goal for this reserve is established as the value of the affordability gap to construct 50
housing units that are affordable at the 60% California Tax Credit Allocation Committee
(TCAC) median income with a 4% tax credit scenario per unit, or $192,600 per unit, for a
total funding goal of $9,630,000. The affordability gap was determined as part of the Non-
Residential Linkage Fee Nexus Study dated October 5, 2021, prepared by Keyser Marston
Associates, Inc.
Assigned Fund Balance
Amounts that are constrained by the City/Fire District’s intent to be used for specific purposes,
but are neither restricted nor committed, should be reported as assigned fund balance. This policy
hereby delegates the authority to assign amounts to be used for specific purposes to the City
Manager and/or Finance Director for the purpose of reporting these amounts in the annual
financial statements. The following are a few non-exclusive examples of assigned fund balance.
Economic and Community Development Special Services
The City’s General Fund balance assigned for contracts, special services, or projects
associated with Economic and Community Development (ECD) special projects or ECD
initiatives/Council goals (such as economic strategy and Development Code contract
services) as well as a one-year value of staffing costs for Planning, Building and Safety,
and Engineering (not including capital and project management).
Habitat Mitigation and Sphere of Influence Issues
This reserve provides for ancillary costs related to annexation of the sphere area, including
mitigation issues and legal challenges. Another area covered by this reserve is the
creation of a multi-species habitat conservation plan as well as acquisition of habitat
conservation land.
Community Services Programs-Recreation
The City’s General Fund balance assigned for non-recurring costs to support community
services programs, including a wide variety of classes, special events, and recreational
activities sponsored by the Community Services Department. The initial funding of this
reserve resulted from the combining of the Department’s recreational and community
activities that were accounted for in a separate Special Fund into the General Fund
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FUND BALANCE POLICY
PAGE 5 OF 5
effective with the Fiscal Year 2020/21 Budget. The fund balance remaining in the
Recreation Services Fund as of June 30, 2020 was closed out to the City’s General Fund.
Community Services Programs-Cultural Arts
The City’s General Fund balance assigned for non-recurring costs to support community
services programs, including a wide variety of classes, theatrical performances, and
cultural activities sponsored by the Community Services Department. The initial funding
of this reserve resulted from the combining of the Department’s cultural and theatrical
activities that were accounted for in a separate Special Fund into the General Fund
effective with the Fiscal Year 2020/21 Budget. The fund balance remaining in the Victoria
Gardens Cultural Center Fund as of June 30, 2020 was closed out to the City’s General
Fund.
Unassigned Fund Balance
These are residual positive net resources of the General Fund and Fire District funds in excess
of what can properly be classified in one of the other four categories.
Fund Balance Classification
The accounting policies of the City/Fire District consider 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/Fire
District considers committed amounts to be reduced first, followed by assigned amounts and then
unassigned amounts.
This policy is in place to provide a measure of protection for the City/Fire District against
unforeseen circumstances and to comply with GASB Statement No. 54. No other policy or
procedure supersedes the authority and provisions of this policy.
Page 56
RESOLUTION NO. 22-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA COMMITTING TO THE
LEVEL OF FISCAL RESERVES FOR THE CITY OF RANCHO
CUCAMONGA
WHEREAS, the Rancho Cucamonga City Council desires to protect existing services; and
WHEREAS, the Rancho Cucamonga City Council desires to be prepared for
emergencies; and
WHEREAS, the Rancho Cucamonga City Council desires to maintain good fiscal
management and fiscal structure to operate a municipal corporation; and
WHEREAS, the Rancho Cucamonga City Council desires to maintain the financial
strength required to obtain beneficial bond ratings for the City.
NOW, THEREFORE, the City Council of the City of Rancho Cucamonga, California does
hereby resolve on this 16th day of June 2022 that the level of fiscal reserves maintained by the
City of Rancho Cucamonga as of fiscal year end are committed to the goals as outlined in the
City’s Fund Balance Policy, attached to this resolution as Exhibit A.
PASSED, APPROVED, AND ADOPTED this 16th day of June 2022.
ATTACHMENT 2Page57
Resolution No. FD 22-XXX
RESOLUTION NO. FD 22-XXX
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN
BERNARDINO COUNTY, CALIFORNIA COMMITTING TO THE
LEVEL OF FISCAL RESERVES FOR THE RANCHO
CUCAMONGA FIRE PROTECTION DISTRICT
WHEREAS, the Rancho Cucamonga Fire Protection District Board desires to protect
existing services; and
WHEREAS, the Rancho Cucamonga Fire Protection District Board desires to be prepared
for emergencies; and
WHEREAS, the Rancho Cucamonga Fire Protection District Board desires to maintain
good fiscal management and fiscal structure to operate a municipal corporation.
NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection
District, San Bernardino, California does hereby resolve on this 16th day of June 2022 that the
level of fiscal reserves maintained by the Rancho Cucamonga Fire Protection District as of fiscal
year end are committed to the goals as outlined in the District’s Fund Balance policy, attached to
this resolution as Exhibit A.
PASSED, APPROVED, AND ADOPTED this 16th day of June 2022.
ATTACHMENT 3Page58
DATE:June 16, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY:Tamara L. Oatman, Finance Director
SUBJECT:Consideration to Approve Updated City General Fund Reserve Funding
Goals Policy. (CITY)
RECOMMENDATION:
Staff recommends that the City Council approve the attached updated City General Fund Reserve
Funding Goals Policy.
BACKGROUND:
This City General Fund Reserve Funding Goals Policy establishes the methodology for the
funding goals for each of the City General Fund reserves, including the replacement of vehicles,
equipment, and computer equipment/technology. This policy, which was initially approved by the
City Council in June 2012, formalizes the City General Fund reserves, establishes some new
ones, and sets quantifiable goals for each reserve. The following updates were made to the
policy:
The description for the funding goal for employee leave payouts was enhanced to include
applicable fringe benefits (Medicare) and the annual allocation from the City’s Cost
Allocation Plan (CAP).
The name of the “800 MHz radio system replacement” assigned fund balance was
changed to “Dispatch system and 800 MHz radio reserve” and the description and funding
goals were enhanced to incorporate the Fire District’s portion of this reserve.
The “Community Benefit Projects” reserve has been added to the policy to establish a
funding goal for this reserve which is established to provide a dedicated funding source
for addressing certain industrial projects’ expected impacts on affordable housing
demand, future greenhouse gas emissions, fire protection services, environmental justice,
and related impacts typically associated with large warehouse development. The funding
goal is equivalent to the total Community Benefit Fee commitments identified in qualifying
development agreements entered into between the City and developers of large industrial
warehouse developments.
ANALYSIS:
In accordance with the policy, upon the completion of the City’s annual audit, the Finance Director
prepares a schedule summarizing the funding status of each reserve for use by the City Manager
in future budgetary planning.
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5
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This policy does not apply to reserves determined to be non-spendable in accordance with the
City’s Fund Balance Policy nor does it apply to reserves that pertain to outstanding encumbrances
(i.e., purchase orders) or unrealized gain on investments (GASB31) as of fiscal year end.
FISCAL IMPACT:
None.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
The approval of the General Fund Reserve Funding Goals Policy supports the City Council’s core
value of providing and nurturing a high quality of life for all by demonstrating the active, prudent
fiscal management of the City’s financial resources in order to support the various services the
City provides to all Rancho Cucamonga stakeholders.
ATTACHMENTS:
Attachment 1 - City General Fund Reserve Funding Goals Policy
Page 60
PURPOSE
This City General Fund Reserve Funding Goals Policy establishes the methodology for the
funding goals for each of the City General Fund reserves, including the replacement of vehicles,
equipment, and computer equipment/technology. This policy does not apply to reserves
determined to be nonspendable in accordance with the City’s Fund Balance Policy nor does it
apply to reserves that pertain to outstanding encumbrances (i.e., purchase orders) or unrealized
gain on investments (GASB31) as of fiscal year end. Upon the completion of the City’s annual
audit, this policy directs the Finance Director to prepare a schedule summarizing the funding
status of each reserve as of the audit date. This schedule will serve as a tool for budgetary
planning for the funding of each reserve.
GENERAL POLICY
Following is a detailed description of the methodology for the funding goals for each of the City
General Fund reserves referred to above.
Self-Insurance
The funding goal for this reserve is established at nine times the Self-Insured Retention (SIR) in
each program (Workers’ Compensation, General Liability, and Employment Practices Liability) to
allow for nine full limit claims in any one year. The SIR is essentially the City’s deductible in each
program. Those numbers are calculated as follows: Workers’ Compensation ($250,000 SIR) is
$2,250,000; General Liability ($500,000 SIR) is $4,500,000; and Employment Practices
($250,000 SIR) is $2,250,000. The total proposed reserve is $9,000,000. This level of reserves
protects the City’s assets by ensuring adequate funding in the event of multiple large claims
against the City.
Employee Leave Payouts
The funding goal for this reserve is established at 100% of the current value of vacation, sick
leave, and comp time payouts per the respective City MOUs, including applicable fringe benefits
(Medicare) and the annual allocation from the City’s Cost Allocation Plan (City only).
CITY OF RANCHO CUCAMONGA
CITY GENERAL FUND
RESERVE FUNDING GOALS POLICY
POLICY NO.: ___-__
EFFECTIVE: June 13, 2013
REVISED: June 16, 2022
APPROVED:
ATTACHMENT 1
Page 61
CITY GENERAL FUND
RESERVE FUNDING GOALS POLICY
PAGE 2 OF 4
PERS Rate Stabilization
The funding goal for this reserve is established at a level equal to the value of projected rate
increases identified in the respective annual CalPERS actuarial valuation for five fiscal years after
the year of financial reporting. The related reserve is restricted as the funds have been placed in
the PARS Post-Employment Benefits Trust, which is a restricted asset on the City’s balance
sheet.
City Facilities Capital Repairs
The funding goal for City facilities capital repair is established at a minimum goal of 50% of capital
assets value comprised of construction in progress (excluding infrastructure), building
improvements, and improvements other than buildings for governmental activities, excluding
assets owned by the Rancho Cucamonga Fire Protection District.
Changes in Economic Circumstances
The funding goal for changes in economic circumstances is established at a nine-month reserve,
or 75% of the City General Fund operating budget for the upcoming fiscal year.
Law Enforcement
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 and Community Development Special Services
The funding goal for this reserve is $5,000,000 to pay for contract services, special services, or
projects associated with Economic and Community Development (ECD) special projects or ECD
initiatives/Council goals (such as economic strategy and Development Code contract services)
as well as a one-year value of staffing costs for Planning, Building and Safety, and Engineering
(not including capital and project management). Funding for this reserve would be provided by
unspent revenue from Planning, Building and Safety, and Engineering (not including capital and
project management) on an annual basis.
Habitat Mitigation and Sphere of Influence Issues
The funding goal for this reserve is established at $8,000,000. This reserve provides for ancillary
costs related to annexation of the sphere area, including mitigation issues and legal challenges.
Another area covered by this reserve is the creation of a multi-species habitat conservation plan
as well as acquisition of habitat conservation land. The overall funding goal will be increased
each fiscal year based on the increase in the City’s assessed valuation for the upcoming fiscal
year per the City’s property tax consultant.
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RESERVE FUNDING GOALS POLICY
PAGE 3 OF 4
Working Capital
The funding goal for the City’s General Fund working capital reserve is established at a goal of a
minimum of 5% of the City's General Fund operating budget for the upcoming fiscal year.
Animal Center Facility Replacement
This reserve is established to fund the future replacement of the Animal Center facility. The
funding goal for this reserve is equivalent to the estimated construction cost of the future Center.
General Plan Update
The funding goal is equal to the cost to update the City’s General Plan based on the most recent
contract awarded, increased annually for the CPI as of each fiscal year end. The funding source
for this reserve is a 10% General Plan Maintenance Fee collected on all applicable Building and
Safety Services Department and Planning Department services.
City Infrastructure
The funding goal for City infrastructure is established at a minimum goal of 50% of infrastructure
assets value comprised of road system (excluding right of way), monuments, storm drain system,
and off-road trails system for governmental activities.
Dispatch System and 800 MHz Radio Reserve (City and Fire District)
For the City, this reserve is established to fund the future acquisition or replacement of the City’s
800 MHz radios, as well as the City’s proportionate share of the Countywide radio infrastructure.
Additionally, for the Fire District, the reserve is established to fund the District’s share of major
capital facilities, IT systems, new dispatch enhancements or programs, and radio infrastructure
and equipment for CONFIRE and the 800 MHz backbone system. For the City, the funding goal
is established at 100% of the replacement cost of the radios and 100% of the proportionate cost
of the Countywide radio infrastructure. For the Fire District, the funding goal is established at
100% of the District’s share of the CONFIRE and the 800 MHz backbone system features noted
above.
Mobile Home Park Program
The Building and Safety Department is responsible for enforcing the State mobile home laws and
has adopted the State’s related schedule of fees. One of the fees collected is retained by the City
to cover the cost of mandatory inspections performed by the Building and Safety Department in
accordance with Title 25. The fee also covers the cost of educational materials and related
printing services. The funding goal for this reserve is equal to the cost of a contract inspector for
the mobile home park inspections for eight parks within the City.
City Vehicle and Equipment Replacement
The funding goal is established at 105% of capital assets value comprised of vehicles and
equipment for governmental activities, excluding assets owned by the Rancho Cucamonga Fire
Protection District. The reserve is accounted for in the City’s Equipment and Vehicle
Replacement Internal Service Fund (Fund 712).
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CITY GENERAL FUND
RESERVE FUNDING GOALS POLICY
PAGE 4 OF 4
City Computer Equipment/Technology Replacement
The funding goal is established at 105% of capital assets value comprised of computer
equipment/technology for governmental activities, excluding assets owned by the Rancho
Cucamonga Fire Protection District. The reserve is accounted for in the City’s Computer
Equipment and Technology Replacement Internal Service Fund (Fund 714).
Community Development Information Technology
The funding goal of this reserve is equal to the implementation costs to replace and/or upgrade
the City’s land management software (Accela) combined with three years’ worth of the City’s Cost
Allocation Plan (CAP) allocations to support the annual costs associated with Department of
Innovation and Technology staff time, maintenance contracts, and general administrative
allocations for the City’s land management software. The funding source for this reserve is a 7%
Technology Fee collected on all applicable Building and Safety Services Department, Engineering
Department, and Planning Department services. The reserve is accounted for in the City
Technology Fee Fund (Fund 020).
Economic Development Strategic Reserve
This reserve is established to fund the acquisition and development of key properties to promote
economic development that will benefit the City as a whole and, potentially, generate revenue to
the City on an ongoing basis whenever feasible through negotiated agreements with third parties
(including but not limited to public-private partnerships and land leases). The funding goal is
established at $10,000,000, which is the equivalent of the current value of a 10-acre commercial
parcel in the City. The funding goal will be adjusted annually based on the current value as of
January 1 of each year. After initial funding, the reserve balance may fluctuate when properties
are sold or acquired.
Seasonal Weather Emergency Reserve
This reserve is established to provide a dedicated funding source 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 funding goal is established at 75% of the
highest cost severe weather event in the three most recent fiscal years.
Community Benefit Projects
This reserve is established to provide a dedicated funding source for addressing certain industrial
projects’ expected impacts on affordable housing demand, future greenhouse gas emissions, fire
protection services, environmental justice, and related impacts typically associated with large
warehouse development. The funding goal is equivalent to the total Community Benefit Fee
commitments identified in qualifying development agreements entered into between the City and
developers of large industrial warehouse developments.
Page 64
DATE:June 16, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY:Noah Daniels, Finance Director
SUBJECT:Consideration of an Interfund Loan Agreement and Authorizing an
Appropriation in the Amount of $14,035,660. (RESOLUTION NO. 2022-088)
(CITY)
NOTE: Staff report to be provided prior to the Special City Council Meeting
of June 16, 2022.
Page 65
C5.Consideration of an Interfund Loan Agreement and Authorizing an Appropriation in the Amount of
$14,035,660.(RESOLUTION NO.2022-088)(CITY)
DATE:June 16, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY:Noah Daniels, Finance Director
SUBJECT:Consideration of an Interfund Loan Agreement and Authorizing an
Appropriation in the Not-to-Exceed Amount of $14,035,700.
(RESOLUTION NO. 2022-088) (CITY)
RECOMMENDATION:
It is recommended that the City Council adopt a Resolution approving an interfund loan
agreement from the General Fund to the Fiber Optic Network Fund and authorize the necessary
appropriations of not-to-exceed $14,035,700 to fund the interfund loan.
BACKGROUND:
In September 2017, the City Council approved the Fiber Optic Master Plan, authorizing a
framework to provide broadband services to the residential and business community. A key
component of that plan was to establish an agreement with a private broadband retail provider
and generate service revenues to fund the expansion.
In January 2019, the City issued the 2019 Lease Revenue Bonds ("2019 LRB") to finance the
acquisition, design, and construction to expand the existing fiber optic network, utilizing service
revenues from broadband subscriptions to repay debt service. The General Fund anticipated
covering debt service for three years based on the fiscal analysis prepared leading up to the 2019
LRB. After three years, projections indicated that service revenues would be able to repay the
debt service.
ANALYSIS:
In early 2020, approximately a year after the issuance of the 2019 LRB, unforeseen events
resulting from COVID significantly interrupted the projected service revenue growth. Because the
interruptions occurred during the early development stages of the Fiber Optic Master Plan,
service revenues have lagged from the original fiscal projections.
The City agreed to take necessary actions to repay debt service on the 2019 LRB utilizing service
revenue from broadband subscriptions, and when those were insufficient to use other sources
legally available. The City's General Fund anticipated the need to repay debt service for three
years while service revenues from broadband subscriptions ramped up. The General Fund’s fund
balance was assigned to reflect that commitment.
Due to the service interruptions, the General Fund will continue to need to repay debt service for
the next several years, which does not align with the City's initial fiscal analysis and commitment.
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Therefore, it is recommended that City Council approve an interfund loan from the General Fund
to the Fiber Optic Network Fund to recognize the additional commitment being made to support
the Fiber Optic Master Plan and repayment of the 2019 LRB.
The not-to-exceed amount of the interfund loan is equal to the remaining principal and interest
payments on the 2019 LRB through May 1, 2029, and the optional prepayment for the remaining
principal component after that. As such, the the interfund loan amount shall be deposited in an
irrevocable escrow fund held by the 2019 LRB trustee to be used solely to make those payments.
By approving this interfund loan, the General Fund will earn interest from the Fiber Optic Network
Fund. Additionally, by accelerating principal and interest payments on the debt, the City will save
approximately $1,878,780 in future interest payments with the optional prepayment of the 2019
LRB.
The interfund loan will consist of a standard and rollover period. The standard period will be 17
years, aligning with the remaining term of the 2019 LRB. This standard period allows for the full
repayment of the interfund loan should future service revenue growth recover and meet projected
levels. If service growth continues to lag, outstanding amounts will be converted to the rollover
period and allow for an additional 10 years of repayment. The entire amount will be due and
payable to the General Fund at the end of the rollover period.
Interest on the interfund loan will accrue at a rate equal to LAIF, mitigating the opportunity loss
from these funds not otherwise being invested. These rates would not penalize or financially
burden the Fiber Optic Network Fund.
Interfund loan repayments can be made as scheduled, in part or whole at any time, or deferred
to a future period. If payments are deferred, the accrued interest will mature, and future payments
will be applied, in order, to accrued interest for the current period, then unpaid matured interest,
and lastly to the outstanding principal balance.
FISCAL IMPACT:
The interfund loan from the General Fund to the Fiber Optic Network Fund is in a not-to-exceed
amount of $14,035,700. If the Resolution to Adopt the Interfund Loan agreement is approved,
appropriations of not-to-exceed $14,035,700 to 1001001-5930 (Advances to Other Funds) for the
City's General Fund and 1711000-4930 (Advances from Other Funds) for the City's Fiber Optic
Network Fund are requested to fund the interfund loan for Fiscal Year 2021/22.
Additionally, an appropriation of $14,035,700 to 1711303-5705 (Defeasance of Bonds) for the
City's Fiber Optic Network Fund is requested for the deposit of the funds into the irrevocable
escrow fund for Fiscal Year 2021/22.
Transfers from the Capital Reserve Fund to the Fiber Optic Network Fund are included in the
preliminary budget for Fiscal Year 2022/23. Approval of the interfund loan and authorization of
the appropriations would eliminate the need for these transfers. Therefore, this action would
reduce appropriations by $934,100 to 1711000-8025 (Transfers In) for the Fiber Optic Network
Fund and 1025001-9711 (Transfers Out) for the Capital Reserve Fund.
Repayment of the interfund loan will not be budgeted at this time.
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COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
This item supports the City Council's core values of intentionally embracing and anticipating the
future by identifying financial solutions and reducing the future debt service obligations.
ATTACHMENTS:
Attachment 1 – Resolution
Attach
RESOLUTION NO. 2022-088
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, APPROVING AN INTERFUND LOAN
FROM THE GENERAL FUND TO THE FIBER OPTIC FUND IN THE
NOT-TO-EXCEED AMOUNT OF $14,035,700, ESTABLISHING THE
TERMS UNDER WHICH THE LOAN WILL BE REPAID, AND MAKING A
FINDING OF EXEMPTION UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Rancho Cucamonga (“City”) owns and operates the
Rancho Cucamonga Municipal Utility (“RCMU”). RCMU provides broadband internet
service to residential and business customers in the City through a fiber optic network
owned by the City. RCMU’s fiber optic network includes backbone fiber optic cables
and other fiber facilities that provide up to one gigabyte per second Ethernet links to
provide voice, data, and internet service to City facilities and customers.
WHEREAS, in 2019, the Rancho Cucamonga Public Finance Authority
(“Authority”) issued tax-exempt lease revenue bonds in the principal amount of
$9,875,000 (Series A) and taxable lease revenue bonds in the principal amount of
$2,320,000 (Series B) to finance the acquisition, design, construction, and equipping of
an expansion of RCMU’s fiber optic network, among other costs (collectively, the
“Bonds”). The Bonds are payable primarily from lease payments made by the City to
the Authority pursuant to a lease agreement between the City and Authority (“Lease
Payments”), and the Lease Payments are structured to produce revenues sufficient to
pay the principal and interest on the Bonds when due.
WHEREAS, the City, through RCMU, continues to invest in its fiber optic network
in order to expand its broadband service capabilities to more residents and businesses
within the City.
WHEREAS, in order to maintain the high quality service expected of RCMU’s
broadband service and make such service available to more residents and businesses,
additional funding is needed from the City to support RCMU.
WHEREAS, the City’s support and expansion of reliable broadband service
within the City is an important governmental purpose.
WHEREAS, the General Fund has sufficient moneys to loan the Fiber Optic
Fund, which supports RCMU’s fiber optic network, the not-to-exceed amount set forth in
the title of this Resolution.
WHEREAS, the City Council finds that an interfund loan from the General Fund
to the Fiber Optic Fund, which supports RCMU’s fiber optic network on reasonable
terms, is a fiscally responsible way to support RCMU.
Attachment #01
WHEREAS, all legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, BE IT RESOLOVED, the City Council of the City of
Rancho Cucamonga hereby resolves as follows:
Section 1. The facts set forth in the Recitals, Part A of this Resolution, are true
and correct.
Section 2.The City Council hereby authorizes an interfund loan from the
General Fund to the Fiber Optic Fund in the not-to-exceed amount of $14,035,700 on
the terms set forth in Exhibit A of this Resolution. The interfund loan amount shall be
deposited in an irrevocable escrow fund held by the Bond trustee to be used solely to
make Lease Payments covering the remaining principal and interest payments on the
Bonds through May 1, 2029, and the optional prepayment for the remaining principal
component after that.
Section 3.The City Council hereby authorizes the Finance Director to take all
actions necessary to facilitate the intent of this Resolution, including minor modifications
to the terms set forth in Exhibit A, provided any such modification does not result in any
greater financial burden on the General Fund without the City Council’s prior consent.
Section 4.The interfund loan authorized by this Resolution is exempt from the
California Environmental Quality Act pursuant to Public Resources Code Section
15378(b)(4) because it is a government funding mechanism and fiscal activity which
does not involve any new commitment to a specific project which could result in a
potentially significant physical impact on the environment. The RCMU Fiber Optic
Master Plan has previously been approved and reviewed under CEQA, and this
interfund loan is solely intended to help further the implementation of the RCMU Fiber
Optic Master Plan.
Section 5.The City Clerk shall certify to the adoption of this Resolution.
Attachment #01
PASSED, APPROVED AND ADOPTED this 15th day of June, 2022.
________________________________
L. Dennis Michael, Mayor
I, Janice C. Reynolds, City Clerk, City of Rancho Cucamonga, do hereby certify
that the foregoing Resolution was passed at a regular meeting of the City Council of the
City of Rancho Cucamonga held on the 15th day of June, 2022, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAINED: COUNCIL MEMBERS:
ATTEST:
____________________________________
City Clerk, City of Rancho Cucamonga
Attachment #01
EXHIBIT A
TERMS OF INTERFUND LOAN
Standard Period
Not-to-Exceed Loan Amount: $14,035,700
Loan Period: 17 Years
Interest Rate: Varies, based on quarterly LAIF rates
Interest is calculated on the outstanding loan principal at the beginning of each
period
Payment Terms:
Payments shall be as follows:
o Payment of principal shall be due and payable on each April 15th and interest
shall be due and payable on each April 15th and October 15th during the
Standard Period; provided that any amount of principal can be prepaid at any
time prior to the end of the Standard Period, and provided further that the City
Manager may defer payments of principal and interest in the City Manager’s
discretion. At the end of the Standard Period, any unpaid principal and
unpaid matured interest shall be carried over to the Rollover Period.
o Payments shall be applied in the following order: 1) interest accrued for
period, 2) unpaid matured interest, and 3) principal balance.
o On an annual basis, payments will be required only if cashflows from
operating activities on the Statement of Cash Flows reflect a surplus.
Mandatory payments will be equal to 50% of the surplus operating cash flow.
Rollover Period
Loan Amount: Equal to unpaid matured interest and unpaid principal at the end
of the Standard Period
Loan Period: 10 Years
Interest Rate: Varies, based on quarterly LAIF rates
Interest is calculated on the outstanding principal at the beginning of each period
Payments shall be as described above under the Standard Period except that
the total outstanding principal and interest is due and payable at the end of the
Rollover Period.
DATE:June 16, 2022
TO:President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY:Mike McCliman, Fire Chief
Tamara L. Oatman, Finance Director
Darci Vogel, Fire Business Manager
Michelle Cowles, Management Analyst II
SUBJECT:Consideration to Adopt the General Fund Preliminary Budget, Approve a
Resolution Adopting the General Fund Appropriations Limit for Fiscal
Year 2022-23, and set Approval of a Final Budget for the July 20, 2022
Board Meeting. (RESOLUTION NO. FD 2022-016) (FIRE)
RECOMMENDATION:
Staff recommends the Fire Board:
1. Adopt the Rancho Cucamonga Fire Protection District General Fund Preliminary Budget
in the amount of $61,659,150, which is a combination of $41,331,380 General Fund
operational expenditures and $20,327,770 Fire Protection Capital Fund expenditures;
2. Approve a Resolution adopting the General Fund's Article XIIIB Appropriations Limit in the
amount of $48,418,988 for Fiscal Year 2022-23; and
3. Set approval of a final budget for the July 20, 2022 Board Meeting.
BACKGROUND:
The Fire Protection District Law (Health & Safety Code Section 13800, et seq.), Chapter 7,
requires the Fire Board on or before June 30 of each year to adopt a preliminary budget. On or
after July 1 of each year, the amounts set forth in the preliminary budget, except obligations for
fixed assets and new permanent employee positions, are deemed appropriated until the Board
adopts the final budget. On or before October 1 of each year, after making any changes in the
preliminary budget, the Board shall adopt a final budget. The final budget shall establish its
appropriation limit pursuant to the State of California Constitution, Article XIIIB (Gann Limit).
Additionally, a copy of the final budget must be forwarded to the auditor of each county in which
the District is located.
As noted above, the Government Code requires that an appropriations limit be established
annually by the Fire Board based on the final budget. Historically, the District's final budget has
mirrored the preliminary budget. As such, the District's appropriations limit is calculated in
conjunction with the adoption of the preliminary budget. The factor used to develop the
appropriations limit is the C.P.I. change and the change in the City's population per the State of
California Department of Finance.
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ANALYSIS:
On June 2, 2022, the Fire Board held a workshop to review the appropriation requests for Fiscal
Year 2022-23, which included a specific discussion regarding the preliminary budget. The
proposed budget continues to meet the Council/Fire Board's direction of operating independently.
The Fire District was able to achieve a proposed, balanced operational budget through a
combination of moderate revenue growth and continued improvements in operational and
administrative efficiencies.
Subsequent to the workshop, staff received updated pricing for the replacement fire engine
included in the FY 2022-23 Preliminary Budget. Based on the results of RFP #21/22-012, all
three proposals came in over budget due to supply disruptions that have impacted the price of
goods and services, as well as production times. (Note: The results of this RFP were presented
to the Fire Board for approval on June 15, 2022). Therefore, an additional $86,000 will be needed
to fund the purchase of the replacement fire engine in FY 2022-23, increasing the line-item budget
from $900,000 to $986,000. This results in the total budget for the respective account (3288501-
5604) increasing from $2,610,000 to $2,696,000. This increase is reflected in Recommendation
#1 above adopting the Rancho Cucamonga Fire Protection District General Fund Preliminary
Budget.
Based on the factors of the Gann Limit (a C.P.I. change of 7.55% and a population change of
0.00%) per the State of California Department of Finance, the District's Fiscal Year 2022-23
General Fund's appropriations limit is $48,418,988. The District's Fiscal Year 2022-23 General
Fund appropriations subject to this limit total $34,711,760. It is anticipated that the District will be
at 71.69% of its Gann Limit at June 30, 2023. The attached Resolution adopts the annual
appropriations limit as required by Article XIIIB of the State Constitution.
Please refer to the City Manager's Executive Summary for specific details regarding the Fire
District's General Fund Preliminary Budget. The advertised public hearing for adoption of the Fire
District General Fund Final Budget is set for July 20, 2022.
FISCAL IMPACT:
The actions taken by the Fire Board will establish the Rancho Cucamonga Fire Protection
District's preliminary spending plan for Fiscal Year 2022-23 and ensure the District's compliance
with the Gann Limit.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
This item brings together portions of the Council's vision and core values. The delivery of vital fire
and life safety services to residents, visitors, and businesses, through an innovative combination
of risk reduction and emergency response programs, promotes and enhances a safe and healthy
community for all.
ATTACHMENTS:
Attachment 1 - Resolution No. FD 20222-016, General Fund Appropriations Limit for FY 2022-
23
Page 67
Resolution No. FD 22-xxx – Page 1 of 1
ATTACHMENT 1
RESOLUTION NO. FD 22-xxx
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO
CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO
COUNTY, CALIFORNIA, ADOPTING A GENERAL FUND
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022/23 PURSUANT TO
ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION
WHEREAS, Article XIIIB of the Constitution of the State of California provides that the total annual
appropriations subject to the limitation of the State and of each local government for the prior year be
adjusted for change in the cost of living and population except as otherwise provided in Sections (5), (7)
and (8) of said Article XIII-B. These exclusions are Debt Service Funds, Revenue Bonds, Federal Funds
and Grants, Contingencies, Emergencies, Enterprise Funds, Capital Improvement Carry-Overs, Capital
Equipment, Intra-Governmental Service Funds, Reserves for Workers Compensation, Long-Term
Disability, Retirement, Unemployment, and other reserve funds that are deemed reasonable and proper
per the aforementioned sections; and
WHEREAS, pursuant to said Article XIIIB of the Constitution of the State of California, the Board
of Directors of the Rancho Cucamonga Fire Protection District deems it to be in the best interest of the
Rancho Cucamonga Fire Protection District to establish a General Fund appropriations limit for Fiscal Year
2022/23; and
WHEREAS, the Rancho Cucamonga Fire Protection District has determined that said General
Fund’s appropriations limit for Fiscal Year 2022/23 be established in the amount of $48,418,988.
NOW, THEREFORE, the BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA
FIRE PROTECTION DISTRICT HEREBY RESOLVES, that a General Fund appropriations limit for
Fiscal Year 2022/23 pursuant to Article XIII-B of the Constitution of the State of California be established
in the amount of $48,418,988 and the same is hereby established.
BE IT FURTHER RESOLVED that said appropriations limit herein established may be changed
as deemed necessary by resolution of the Board of Directors.
PASSED, APPROVED, AND ADOPTED this 16th day of June 2022.
Page 68
DATE:June 16, 2022
TO:President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY:Mike McCliman, Fire Chief
Tamara L. Oatman, Finance Director
Darci Vogel, Fire Business Manager
Michelle Cowles, Management Analyst II
SUBJECT:Consideration of a Resolution Adopting the Budget and a Resolution
Approving the Appropriations Limit for Fiscal Year 2022-23 in Community
Facilities District (CFD) No. 85-1. (RESOLUTION NO. FD 2022-017)
(RESOLUTION NO. FD 2022-018) (FIRE)
RECOMMENDATION:
Staff recommends the Fire Board adopt the proposed Resolutions approving the Mello-Roos CFD
No. 85-1 annual budget in the amount of $9,254,360 and the Appropriations Limit in the amount
of $18,140,633 for Fiscal Year 2022-23.
BACKGROUND:
Since Fiscal Year 1986-87, the Board has annually adopted a CFD budget to provide for
operations and maintenance costs attributable to providing fire protection services within CFD No.
85-1. The proposed budget for Fiscal Year 2022-23 provides funding for the personnel and
operational costs necessary to maintain existing fire and life safety services within CFD
boundaries. Because CFD 85-1 does not currently generate sufficient funds to support the total
annual staffing costs anticipated with the future opening of Fire Station 178, supplemental funding
is necessary through the Fire District’s General Fund budget.
When the Fire District’s CFD No. 85-1 was approved by the voters in 1985, an appropriations limit
was established at $1,775,000 (1985 costs for operations and maintenance). To adjust the
maximum spending authority (appropriations limit) to meet increased costs for operations and
maintenance, the voters authorized the District to adjust the limit annually. This adjustment is
based on the same methodology used in calculating public agency Prop. 4 spending limits under
Article XIIIB of the State of California Constitution. The factors used to develop the appropriations
limit are the C.P.I. change and the change in the City’s population.
ANALYSIS:
On June 2, 2022, the Fire Board held a workshop to review the appropriation requests for Fiscal
Year 2022-23. The attached Resolution adopts that one-year budget following the Board’s
deliberations at the publicly held budget study session.
Based on the factors of the Gann Limit (a C.P.I. change of 7.55% and a population change of
0.00%) per the State of California Department of Finance, the District’s CFD No. 85-1 Fiscal Year
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2022-23 appropriations limit is $18,140,633. The District’s CFD No. 85-1 Fiscal Year 2022-23
appropriations subject to this limit total $5,531,550. It is anticipated that the District will be at
30.49% of its Gann Limit at June 30, 2023. The attached Resolution adopts the annual
appropriations limit as required by Article XIIIB of the State Constitution.
FISCAL IMPACT:
The proposed Resolutions establish CFD 85-1’s spending plan for Fiscal Year 2022-23 and
ensures the CFD’s compliance with Article XIIIB of the State Constitution.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
This item brings together portions of the Council's vision and core values. The delivery of vital fire
and life safety services to residents, visitors, and businesses, through an innovative combination
of risk reduction and emergency response programs, promotes and enhances a safe and healthy
community for all.
ATTACHMENTS:
Attachment 1 - Resolution No. FD 2022-017, CFD 85-1 Budget for FY 2022-23
Attachment 2 - Resolution No. FD 2022-018, CFD 85-1 Appropriations Limit for FY 2022-23
Page 70
Resolution No. FD 22-xxx – Page 1 of 1
ATTACHMENT - 1
RESOLUTION NO. FD 22-xxx
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO
CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO
COUNTY, CALIFORNIA, APPROVING AND ADOPTING A BUDGET
FOR MELLO-ROOS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR
FISCAL YEAR 2022/23
WHEREAS, a special election was held in the Mello-Roos Community Facilities District No. 85-1
(the "Community Facilities District") of the Rancho Cucamonga Fire Protection District (formerly Foothill
Fire Protection District, the "District"), on Tuesday, December 10, 1985; and
WHEREAS, because of the election, more than two-thirds (2/3) of the qualified electors voted in
favor of a proposition to authorize the levy of a special tax for fire suppression services and facilities, to
establish an appropriations limit based upon changes in cost of living and changes in population; and
WHEREAS, the Board of Directors has received and reviewed a budget for Fiscal Year 2022/23
for the Community Facilities District.
NOW, THEREFORE, the BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE
PROTECTION DISTRICT HEREBY RESOLVES, determines and orders as follows:
SECTION 1. Adoption of Budget. The Board of Directors hereby approves and adopts the
budget designated:
Mello-Roos Community Facilities
District No. 85-1
Annual Budget
for
Fiscal Year 2022/23
A copy of said budget is on file in the office of the District and available for public
inspection.
SECTION 2. Filing of Budget. The Secretary is hereby authorized and directed to forward a
certified copy of this resolution and a copy of the budget to the Office of the Auditor-
Controller for the County of San Bernardino.
PASSED, APPROVED, and ADOPTED this 16th day of June 2022.
Page 71
Resolution No. FD 22-xxx – Page 1 of 1
ATTACHMENT - 2
RESOLUTION NO. FD 22-xxx
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO
CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO
COUNTY, CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR
MELLO-ROOS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR
FISCAL YEAR 2022/23 PURSUANT TO ARTICLE XIIIB OF THE
CALIFORNIA CONSTITUTION
WHEREAS, a special election was held in the Mello-Roos Community Facilities District No. 85-1
(the "Community Facilities District") of the Rancho Cucamonga Fire Protection District (formerly Foothill
Fire Protection District, the "District"), on Tuesday, December 10, 1985; and
WHEREAS, as a result of the election, more than two-thirds (2/3) of the qualified electors voted in
favor of a proposition to authorize the levy of a special tax for fire suppression services and facilities, to
establish an appropriations limit and to annually adjust the special tax and appropriations limit based upon
changes in cost of living and changes in population; and
WHEREAS, the Board of Directors desires to establish the appropriations limit for the Community
Facilities District 85-1 for Fiscal Year 2022/23;
NOW, THEREFORE, the BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE
PROTECTION DISTRICT HEREBY RESOLVES, determines and orders as follows:
SECTION 1. Appropriations Limit. This Board of Directors hereby establishes the Fiscal Year
2022/23 appropriations limit for the Community Facilities District No. 85-1 at
$18,140,633 based on the factors of the Gann limit (a C.P.I. change of 7.55% and
a population change of 0.00%) per the State of California Department of Finance.
SECTION 2. Approval of Electorate. This Board of Directors hereby finds and determines that
the foregoing appropriations limit has been established by the qualified electorate
at a special election held on December 10, 1985, in the manner provided by law.
SECTION 3. Filing. The Secretary is hereby authorized and directed to file a certified copy of this
resolution with the Board of Supervisors for San Bernardino County and with the
office of the Auditor-Controller for the State of California.
PASSED, APPROVED and ADOPTED this 16th day of June 2022.
Page 72
DATE:June 16, 2022
TO:President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY:Mike McCliman, Fire Chief
Tamara L. Oatman, Finance Director
Darci Vogel, Fire Business Manager
Michelle Cowles, Management Analyst II
SUBJECT:Consideration of a Resolution Adopting the Budget and a Resolution
Approving the Appropriation Limit for Fiscal Year 2022-23 in Community
Facilities District (CFD) No. 88-1. (RESOLUTION NO. FD 2022-019)
(RESOLUTION NO. FD 2022-020) (FIRE)
RECOMMENDATION:
Staff recommends the Fire Board adopt the proposed Resolutions approving the budget in the
amount of $2,744,920 and approving the appropriations limit in the amount of $4,794,022, which
is an amount equal to the maximum authorized special taxes, which could be levied in Fiscal Year
2022-23 in Mello-Roos Community Facilities District No. 88-1.
BACKGROUND:
On April 4, 1989, the qualified voters approved the formation of Mello-Roos Community Facilities
District No. 88-1 and authorized the District to annually levy a special tax to provide for fire
protection services within northeast Etiwanda. On May 19, 1989, the Board adopted an ordinance
authorizing the levy of a special tax in CFD 88-1. The ordinance authorizes the District, by
resolution, to annually levy the special tax for purposes of land acquisition, fire station
construction, purchase of equipment and operations, and maintenance costs (which includes
personnel) to provide fire protection services within CFD 88-1.
Fiscal Year 2022-23 is the thirty-fourth (34) consecutive year the District has levied a special tax
to provide required revenues for capital improvements (land, fire station facility, equipment) and
fire protection services (personnel, operations, and maintenance) within this CFD. Because CFD
88-1 does not currently generate sufficient funds to support the total annual staffing costs,
supplemental funding is necessary through the Fire District's General Fund budget.
ANALYSIS:
On June 2, 2022, the Fire Board held a workshop to review the appropriation requests for Fiscal
Year 2022-23. The attached resolution adopts that one-year budget following the Board’s
deliberations at the publicly held budget study session.
Based on the factors of the Gann Limit (a C.P.I. change of 7.55% and a population change of
0.00%) per the State of California Department of Finance, the District’s CFD No. 88-1 Fiscal Year
2022-23 appropriations limit is $4,794,022. The attached resolution adopts the annual
Page 73
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appropriations limit as required by Article XIIIB of the State Constitution.
FISCAL IMPACT:
The proposed resolutions establish CFD 88-1’s spending plan for Fiscal Year 2022-23 and ensure
the CFD’s compliance with Article XIIIB of the State Constitution.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
This item brings together portions of the Council's vision and core values. The delivery of vital fire
and life safety services to residents, visitors, and businesses, through an innovative combination
of risk reduction and emergency response programs, promotes and enhances a safe and healthy
community for all.
ATTACHMENTS:
Attachment 1 - Resolution No. FD 2022-019, CFD 88-1 Budget for FY 2022-23
Attachment 2 - Resolution No. FD 2022-020, CFD 88-1 Appropriations Limit for FY 2022-23
Page 74
Resolution No. FD 22-xxx – Page 1 of 1
ATTACHMENT - 1
RESOLUTION NO. FD 22-xxx
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO
CUCAMONGA FIRE PROTECTION DISTRICT, CITY OF RANCHO
CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF
CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR
COMMUNITY FACILITIES DISTRICT NO. 88-1 FOR FISCAL YEAR
2022/23
WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District (formerly
Foothill Fire Protection District, hereinafter referred to as the "legislative body") has initiated proceedings,
held a public hearing, conducted an election and received a favorable vote from the qualified electors
relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms
and provisions of the "Mello-Roos Community Facilities Act of 1982", as amended, being Chapter 2.5,
Part 1, Division 2, Title 5 of the Government Code of the State of California. This Community Facilities is
designated as COMMUNITY FACILITIES DISTRICT NO. 88-1 (hereinafter referred to as the "District");
and
WHEREAS, this legislative body has received and reviewed a budget for Fiscal Year 2022/23 for
the District.
NOW, THEREFORE, the BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE
PROTECTION DISTRICT HEREBY RESOLVES, determines, and orders as follows:
SECTION 1: Adoption of Budget. The Board of Directors hereby approves and adopts the
budget designated: "Mello-Roos Community Facilities District No. 88-1 Annual
Budget for Fiscal Year 2022/23" and is on file in the office of the District and
available for public inspection.
PASSED, APPROVED, and ADOPTED this 16th day of June 2022.
Page 75
Resolution No. FD 22-xxx – Page 1 of 1
ATTACHMENT - 2
RESOLUTION NO. FD 22-xxx
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO
CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO
COUNTY, CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR
COMMUNITY FACILITIES DISTRICT NO. 88-1 FOR FISCAL YEAR
2022/23 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA
CONSTITUTION
WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District (formerly
Foothill Fire Protection District, hereinafter referred to as the "legislative body") has initiated proceedings,
held a public hearing, conducted an election and received a favorable vote from the qualified electors
relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms
and provisions of the "Mello-Roos Community Facilities Act of 1982", as amended, being Chapter 2.5,
Part 1, Division 2, Title 5 of the Government Code of the State of California. This Community Facilities
District is designated as COMMUNITY FACILITIES DISTRICT NO. 88-1 (hereinafter referred to as the
"District"); and
WHEREAS, as a result of such election, the qualified electors of the District authorized the
establishment of an Article XIII-B appropriations limit for the District equal to the maximum authorized
special taxes which may be levied in any fiscal year; and
WHEREAS, this legislative body desires to establish the appropriations limit for the District for
Fiscal Year 2022/23.
NOW, THEREFORE, the BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE
PROTECTION DISTRICT HEREBY RESOLVES, determines and orders as follows:
SECTION 1. Appropriations Limit. This legislative body hereby establishes the appropriations
limit for Community Facilities District No. 88-1 for Fiscal Year 2022/23 in an amount
equal to $4,794,022.
SECTION 2. Approval by Electorate. This legislative body hereby finds and determines that the
foregoing appropriations limit has been authorized by the qualified electors of the
District at a special election held on April 4, 1989, in the manner provided by law.
PASSED, APPROVED, and ADOPTED this 16th day of June 2022.
Page 76
DATE:June 16, 2022
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY:Tamara L. Oatman, Finance Director
Jason C. Welday, Director of Engineering Services/City Engineer
Justine Garcia, Deputy Director of Engineering Services
SUBJECT:Consideration to Approve Resolutions Adopting the Fiscal Year 2022/23
Budget, the Article XIIIB Appropriations Limit for Fiscal Year 2022/23, and
the Capital Improvement Program for Fiscal Year 2022/23.
(RESOLUTION NOS. 2022-069 AND 2022-070) (CITY)
RECOMMENDATION:
It is recommended that the City Council approve the resolutions adopting the Fiscal Year 2022/23
Budget and the Article XIIIB Appropriations Limit for Fiscal Year 2022/23; and adopt the Capital
Improvement Program for Fiscal Year 2022/23.
BACKGROUND:
Budget and Appropriations Limit. Each year, the City of Rancho Cucamonga proposes a one-
year program of service through the adoption of the annual budget. In conjunction with the
adoption of the annual budget, the State of California Constitution, Article XIIIB, requires that an
appropriations limit be established annually by the City Council. The factor used to develop the
appropriations limit is the C.P.I. change and the change in the City’s population per the State of
California Department of Finance.
Capital Improvement Program. Each fiscal year, a Capital Improvement Program (CIP) is
required to be adopted by the City Council per Government Code 65401. The CIP consists of a
multi-year plan for the planning, designing and construction of citywide infrastructure
improvements. A copy of Government Code 65401 has been included as Attachment 3.
The CIP is a vital piece of the City’s Annual Operating Budget as it dictates major capital
expenditures obligated in any given year. The CIP consists of a multi-year plan for citywide
infrastructure improvements. Each year, the City budgets for funded projects which will occur
during said fiscal year. The list of projects contained in the CIP addresses both the City’s long
and short-term capital goals and reflect the desires of the community, as well as projects that
serve operational and maintenance needs.
ANALYSIS:
Budget and Appropriations Limit. On June 2, 2022, the City Council held a workshop to review
the appropriation requests for Fiscal Year 2022/23. Subsequent to the workshop, it was
determined that additional clerical support is needed on a go forward basis to more fully meet the
growing needs of the City Council and the City Manager’s Office resulting from increased
participation in various professional activities. In order to most effectively meet this need, an
Administrative Assistant position has been added to the proposed budget at a fully burdened cost
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6
of $73,070. The attached resolution adopts the one-year budget following the Council’s
deliberations at the publicly held budget study session and includes the cost of the added clerical
position. The budget is summarized as follows:
FISCAL YEAR 2022/23 BUDGET
General Fund $107,532,940
Library Services $ 6,953,610
Special Funds $163,983,260
Total $278,469,810
Based on the factors of the Gann Limit (a C.P.I. change of 7.55% and a population change of
0.00%), the City’s Fiscal Year 2022/23 appropriations limit is $102,148,024. The City’s Fiscal
Year 2022/23 appropriations subject to this limit total $80,213,050. It is anticipated that the City
will be at 78.53% of its Gann Limit at June 30, 2023. The additional resolution adopts the annual
appropriations limit as required by Article XIIIB of the State Constitution.
Capital Improvement Program. The CIP Summary Index has been categorized by
corresponding Departments and project names are in alphabetical order within each section.
Individual project sheets include a short summary, cost, and year funded and can be viewed on
the City’s CIP Viewer online at:
https://regis.maps.arcgis.com/apps/webappviewer/index.html?id=8c4e09a7fc5e450eb262d95be
71e8b6e
FISCAL IMPACT:
Budget and Appropriations Limit. The proposed resolutions establish the City of Rancho
Cucamonga’s spending plan for Fiscal Year 2022/23 and ensure the City’s compliance with Article
XIIIB of the State Constitution.
Capital Improvement Program. Projects are funded from a variety of sources including
Development Impact Fees, Measure I, Gas Tax, and miscellaneous grants. The CIP for Fiscal
Year 2022/23 proposes 59 projects totaling $116,777,000 to be executed in the upcoming fiscal
year. In addition, there are 26 projects totaling just over $67,121,030 identified as future and
unfunded.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
Budget and Appropriations Limit. The adoption of the Fiscal Year 2022/23 Budget supports
the City Council’s core value of providing and nurturing a high quality of life for all by
demonstrating the active, prudent fiscal management of the City’s financial resources in order to
support the various services the City provides to all Rancho Cucamonga stakeholders.
Capital Improvement Program. The City’s Engineering staff works with all Departments within
the City to develop and implement an economically feasible CIP that embodies the City’s public
infrastructure needs. This item addresses the City Council’s vision for the City by ensuring the
construction of high-quality public improvements that promote a world class community and also
supports the City Council’s Core Value of promoting and enhancing a safe and healthy community
for all.
Page 78
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6
ATTACHMENTS:
Attachment 1 - Resolution (Budget Adoption)
Attachment 2 - Resolution (Appropriations Limit)
Attachment 3 - Government Code 65401
Attachment 4 - FY 2022/23 Capital Improvement Program Summary Index
Page 79
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ATTACHMENT 1
RESOLUTION NO. 22-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA ADOPTING THE CITY’S
FISCAL YEAR 2022/23 BUDGET
WHEREAS, the Rancho Cucamonga City Council held one workshop to review the
appropriation requests for Fiscal Year 2022/23 on June 2, 2022; and
WHEREAS, the Rancho Cucamonga City Council held a public meeting on the General
City Budget; and
WHEREAS, this public meeting was noticed in accordance with applicable laws and held
on June 2, 2022.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Rancho
Cucamonga, California does hereby resolve on this 16th day of June 2022, as follows:
SECTION 1: Adoption of Fiscal Year 2022/23 Budget. The City of Rancho Cucamonga
budget for Fiscal Year 2022/23, on file in the office of the Finance Director,
is hereby adopted in the amount of $278,469,810. This budget total
includes appropriations for both the general and other special purpose
funds.
SECTION 2: Transfers of Funds Between and/or Within Appropriations. The City
Council of the City of Rancho Cucamonga may transfer funds between
funds or activities set forth in the budget. The City Manager may transfer
funds between appropriations within any fund as set forth in the budget and
may transfer appropriations between activities within any cost center in the
same fund.
SECTION 3: Transfers of Funds Between Funds. Transfers of funds between funds as
shown throughout the fund transfer sections of the budget shall be made
as expenditures warrant such transfers.
SECTION 4: Disbursements. The City Manager and the Finance Director, or the duly
designated representative, are hereby empowered and authorized to
disburse funds pursuant to appropriations provided for in the Fiscal Year
2022/23 Budget and have the responsibility to establish procedures and to
administratively implement and control the budget on all matters, except
direct expenditures by Councilmembers which require Council approval.
The City Manager, or the duly designated representative, is hereby
empowered and authorized to make an annual contribution to the PARS
Public Agencies Post-Employment Benefits Trust for the City in an amount
not to exceed $300,000 and for the Fire District in an amount not to exceed
$1,000,000. The contribution is at the discretion of the City Manager based
on the results of operations for each fiscal year and is not mandatory.
SECTION 5: Additional Appropriations. The City Council may amend this budget to add
or delete appropriations.
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5
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3
SECTION 6: Personnel. The City Manager is hereby empowered and authorized to
develop and fill additional positions as deemed necessary to conduct City
operations provided funding is available in the budget.
PASSED, APPROVED, AND ADOPTED this 16th day of June 2022.
Page 81
RESOLUTION NO. 22-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA ESTABLISHING AN
APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF
THE CALIFORNIA STATE CONSTITUTION FOR FISCAL YEAR
2022/23
WHEREAS, Article XIIIB of the State of California provides that the total annual
appropriations subject to limitation of the State and of each local government shall not exceed the
appropriations limit of such entity of government for the prior year adjusted for changes in the cost
of living and population except as otherwise provided in said Article XIIIB; and
WHEREAS, pursuant to said Article XIIIB of the Constitution of the State of California, the
City Council of the City of Rancho Cucamonga deems it to be in the best interests of the City of
Rancho Cucamonga to establish an appropriations limit for Fiscal Year 2022/23; and
WHEREAS, the Finance Director of the City of Rancho Cucamonga has determined that
said appropriations limit for Fiscal Year 2022/23 be established in the amount of $102,148,024.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Rancho
Cucamonga, California does hereby resolve that an appropriations limit for Fiscal Year 2022/23
pursuant to Article XIIIB of the Constitution of the State of California be established in the amount
of $102,148,024 and the same is hereby established.
BE IT FURTHER RESOLVED that said appropriations limit herein established may be
changed as deemed necessary by resolution of the City Council.
PASSED, APPROVED, AND ADOPTED this 16th day of June 2022.
ATTACHMENT 2Page82
GOVERNMENT CODE
TITLE 7. PLANNING AND LAND USE [65000 - 66499.58]
(Heading of Title 7 amended by Stats. 1974, Ch. 1536.)
DIVISION 1. PLANNING AND ZONING [65000 - 66301]
(Heading of Division 1 added by Stats. 1974, Ch. 1536.)
CHAPTER 3. Local Planning [65100 - 65763]
(Chapter 3 repealed and added by Stats. 1965, Ch. 1880.)
ARTICLE 7. Administration of General Plan [65400 - 65404]
(Article 7 added by Stats. 1965, Ch. 1880.)
65401. If a general plan or part thereof has been adopted, within such time as may be fixed by
the legislative body, each county or city officer, department, board, or commission, and each
governmental body, commission, or board, including the governing body of any special district or
school district, whose jurisdiction lies wholly or partially within the county or city, whose functions
include recommending, preparing plans for, or constructing, major public works, shall submit to
the official agency, as designated by the respective county board of supervisors or city council, a
list of the proposed public works recommended for planning, initiation or construction during the
ensuing fiscal year. The official agency receiving the list of proposed public works shall list and
classify all such recommendations and shall prepare a coordinated program of proposed public
works for the ensuing fiscal year. Such coordinated program shall be submitted to the county or
city planning agency for review and report to said official agency as to conformity with the adopted
general plan or part thereof.
(Amended by Stats. 1970, Ch. 1590.)
ATTACHMENT 3
Page 83
General Plan Reference(s)No.Project
Account Amount Account Amount Account Amount
Animal Services
PF-1.1 1 Animal Center Office Reconfigure 1125104-5602 0 1125104-5602 20,000 1125104-5602 0 220,000
Unknown 0 Unknown 0 Unknown 200,000
Animal Services Totals:-$ 20,000$ 200,000$ 220,000$
City Manager's Office
LC-1.10, LC-4.4, LC-4.5, H-1.1 1 8th Street Affordable Housing Grant Opportunity 0 Grant Opportunity 0 Grant Opportunity 2,300,000 2,300,000
City Manager's Office Totals:-$ -$ 2,300,000$ 2,300,000$
Community Services
OS-1.1, OS-1.3 1 Beryl Park East Inclusive Playground Grant Opportunity 0 State Grant (119)286,750 Grant Opportunity 0 967,060
1119401-5607 0 1119401-5607 623,270 1119401-5607 0
11204015650/2058120-0 17,040 11204015650/2058120-0 0 11204015650/2058120-0 0
LMD1-Cap Rpl (140)40,000 LMD1-Cap Rpl (140)0 LMD1-Cap Rpl (140)0
OS-1.8, LC-1.1 2 Central Park Adventure Playground Unknown 0 Unknown 0 Unknown 7,000,000 7,000,000
OS-1.8, PF-1.4 3 Central Park Backbone Infrastructure Unknown 0 Unknown 0 Unknown 5,200,000 5,200,000
OS-1.8, PF-1.4 4 Citywide Parks & Recs Master Plan 11204015650/2042120-0 29,000 11204015650/2042120-0 0 11204015650/2042120-0 0 329,000
1119401-5300 0 1119401-5300 300,000 1119401-5300 0
PF-1.1, PF-1.4 5 Cultural Center Courtyard Redesign 1025001650/1894025-0 424,580 10250015650/1894025-0 3,120,000 10250015650/1894025-0 0 3,544,580
OS-1.7 6 Etiwanda Creek Park Phase II 11204015650/1664120-0 295,210 11204015650/1664120-0 450,000 11204015650/1664120-0 5,548,000 6,293,210
OS-1.3 7 Golden Oak Park Pickleball Courts Unknown 0 Unknown 0 Unknown 420,000 420,000
PF-1.1 8 Quakes Scoreboard Replacement 1119401-5603 0 1119401-5603 700,000 1119401-5603 0 700,000
Community Services Totals:805,830$ 5,480,020$ 18,168,000$ 24,453,850$
Engineering Services
LC-5.1, MA-3.4, MA-4.2, S-1.5 1
6th Street at BNSF Spur Crossing
West of Etiwanda 11243035650/1839124-0 33,880 11243035650/1839124-0 150,000 11243035650/1839124-0 1,250,000 2,884,520
Unknown 0 Unknown 0 Unknown 1,325,640
17053035650/1839705-0 0 17053035650/1839705-0 25,000 17053035650/1839705-0 100,000
MA-2.3, MA-2.13, MA-2.14, MA-3.1, MA-3.2 2 6th Street Cycle Track 11983035650/2005198-0 170,681 11983035650/2005198-0 286,000 11983035650/2005198-0 0 456,681
MA-2.1, MA-3.1 3 Active Transportation/SRTS Program 1174303-5300 0 1174303-5300 150,000 1174303-5300 0 150,000
LC-1.1, LC-1.4, LC-4-2 4 ADA Ramps at Various Locations 11773035650/1150177-0 250,000 11773035650/1150177-0 355,000 11773035650/1150177-0 0 605,000
LC-1.1, LC-1.4, LC-4-2 5
ADA Transition Plan Improvement
Program 1025001-5300 0 1025001-5300 150,000 1025001-5300 0 150,000
MA-1.1, MA-2.8, MA-5.4 6
Advance Traffic Management System-
Phase 2 11243035650/2004124-0 522,000 11243035650/2004124-0 7,260,500 11243035650/2004124-0 0 7,802,020
10250015650/2004025-0 19,520 10250015650/2004025-0 0 10250015650/2004025-0 0
CITY OF RANCHO CUCAMONGA - CAPITAL IMPROVEMENT PROGRAM - FISCAL YEAR 2022/23
Prior Yr Funding Total Project CostFuture/Unfunded2022/23 Funded
Page 1 of 5ATTACHMENT 4Page84
General Plan Reference(s)No.Project
Account Amount Account Amount Account Amount
CITY OF RANCHO CUCAMONGA - CAPITAL IMPROVEMENT PROGRAM - FISCAL YEAR 2022/23
Prior Yr Funding Total Project CostFuture/Unfunded2022/23 Funded
MA-2.1, MA-2.2, MA-2.4, S-1.5 7
Almond Street Extension Street
Improvements 11983035650/2101198-0 0 11983035650/2101198-0 100,000 11983035650/2101198-0 436,500 536,500
OS-2.1, OS-2.4 8 Almond Trail Improvement Project 11303035650/2110130-0 0 11303035650/2110130-0 272,000 11303035650/2110130-0 0 272,000
PF-1.1, PF-1.7 9
Amethyst Fire Station 171 Fiber
Extension 32885015650/2096288-0 0 32885015650/2096288-0 0 32885015650/2096288-0 80,000 160,000
17113035650/2096711-0 0 17113035650/2096711-0 10,000 17113035650/2096711-0 70,000
PF-1.1, S-1.1 10
Arbor Substation Exterior Design and
Storage Improvements 17053035650/2106705-0 0 17053035650/2106705-0 300,000 17053035650/2106705-0 0 300,000
PF-1.4 11 Banyan Street Pavement Rehabilitation 11773035650/2033177-0 60,000 11773035650/2033177-0 550,000 11773035650/2033177-0 0 1,310,000
11793035650/2033179-0 0 11793035650/2033179-0 700,000 11793035650/2033179-0 0
PF-1.4 12
Base Line Road Pavement
Rehabilitation Project 11793035650/2097179-0 0 11793035650/2097179-0 900,000 11793035650/2097179-0 0 900,000
OS-1.9, OS-2.1, OS-2.5 13 Day Creek Channel Bike Trail 11052085650/2014105-0 0 11052085650/2014105-0 217,000 11052085650/2014105-0 0 620,000
12143035650/2014214-0 0 12143035650/2014214-0 403,000 12143035650/2014214-0 0
PF-1.4 14 Etiwanda Avenue - East Side Widening 11773035650/2002177-0 5,000 11773035650/2002177-0 0 11773035650/2002177-0 0 850,000
11243035650/2002124-0 240,000 11243035650/2002124-0 605,000 11243035650/2002124-0 0
MA-4.2, MA-4.5 15 Etiwanda Avenue-Grade Separation 11813035650/1922181-0 12,800,000 11813035650/1922181-0 62,350,000 11813035650/1922181-0 0 75,150,000
PF-1.4 16
Etiwanda Avenue Pavement
Rehabilitation Project 11793035650/2007179-0 0 11793035650/2007179-0 0 11793035650/2007179-0 2,550,000 2,600,000
11773035650/2007177-0 50,000 11773035650/2007177-0 0 11773035650/2007177-0 0
LC-5.5, PF-1.4 17
Foothill Blvd: Grove Ave to San
Bernardino Rd 1001xxx5650/1964001-0 12,500 1001xxx5650/1964001-0 0 1001xxx5650/1964001-0 0 1,489,500
11983035650/1964198-0 37,000 11983035650/1964198-0 240,000 11983035650/1964198-0 0
Unknown 0 Unknown 0 Unknown 1,200,000
PF-1.4 18
FY22-23 Local Overlay at Various
Locations 11743035650/1022174-0 1,820,000 11743035650/1022174-0 2,800,000 11743035650/1022174-0 0 5,220,000
11773035650/1022177-0 0 11773035650/1022177-0 600,000 11773035650/1022177-0
PF-1.4 19
FY22-23 Local Slurry Seal Pavement
Rehabilitation @ Various Locations 11743035650/1022174-0 280,000 11743035650/1022174-0 505,000 11743035650/1022174-0 0 785,000
PF-1.4 20 General Plan Implementation 1025001-5300 0 1025001-5300 150,000 1025001-5300 0 150,000
LC-5.8, OS-1.1, OS-2.4 21 Heritage Park Bridge Replacements 18473035650/1963847-0 150,240 18473035650/1963847-0 459,870 18473035650/1963847-0 0 1,358,275
32885015650/1963288-0 148,165 32885015650/1963288-0 600,000 32885015650/1963288-0 0
PF-1.4 22
Hermosa Avenue from Foothill Blvd to
Church Street 11743035650/2075174-0 45,000 11743035650/2075174-0 562,500 11743035650/2075174-0 0 607,500
PF-1.4 23
Hermosa Avenue from Wilson to North
City Limit 11743035650/2099174-0 0 11743035650/2099174-0 550,000 11743035650/2099174-0 0 550,000
Page 2 of 5Page85
General Plan Reference(s)No.Project
Account Amount Account Amount Account Amount
CITY OF RANCHO CUCAMONGA - CAPITAL IMPROVEMENT PROGRAM - FISCAL YEAR 2022/23
Prior Yr Funding Total Project CostFuture/Unfunded2022/23 Funded
PF-1.4, MA-2.1 24
Hermosa Avenue Street Widening/Arte
Parking 11743035650/1976174-0 50,000 11743035650/1976174-0 0 11743035650/1976174-0 0 420,000
11983035650/1976198-0 0 11983035650/1976198-0 370,000 11983035650/1976198-0 0
PF-1.4 25
Highland Avenue Pavement
Rehabilitation Project 11743035650/2104174-0 0 11743035650/2104174-0 40,000 11743035650/2104174-0 670,000 710,000
PF-1.4 26
Lemon Avenue Pavement
Rehabilitation Project 11773035650/2098177-0 0 11773035650/2098177-0 645,000 11773035650/2098177-0 0 645,000
PF-1.4 27
Milliken Avenue Pavement
Rehabilitation Project 11743035650/2100174-0 0 11743035650/2100174-0 35,000 11743035650/2100174-0 700,000 735,000
PF-1.4 28
Pecan Avenue: Whittram Ave to Arrow
Rte-Street Improvements 12043145650/2038204-0 10,000 12043145650/2038204-0 0 12043145650/2038204-0 675,000 685,000
29 RCMU Electric Substation #2 17053035650/2063705-0 0 17053035650/2063705-0 0 17053035650/2063705-0 12,070,000 12,070,000
RC-7.1, RC-7.2, RC-7.3 30
RCMU EV Semi Truck and Car
Charging Station 17053035650/2095705-0 0 17053035650/2095705-0 50,000 17053035650/2095705-0 200,000 250,000
PF-7.1, PF-7.2 31
RCMU Line Extension Design to
Etiwanda Heights 17053035650/2064705-0 0 17053035650/2064705-0 0 17053035650/2064705-0 3,010,000 3,010,000
PF-1.4 32
Whittram Avenue from Etiwanda Creek
to Hickory Avenue 12043145650/2032204-0 13,000 12043145650/2032204-0 0 12043145650/2032204-0 260,000 273,000
Engineering Services Totals:16,716,986$ 82,390,870$ 24,597,140$ 123,704,996$
Fire District
PF-1.1, PF-1.4, S-1.1 1 8th Street Station 179 32885015650/2057288-0 716,770 32885015650/2057288-0 0 32885015650/2057288-0 11,900,000 12,616,770
PF-1.1, PF-1.4, S-1.1 2 Amethyst Avenue Fire Station 171 32885015650/2090288-0 350,000 32885015650/2090288-0 11,550,000 32885015650/2090288-0 0 11,900,000
PF-1.1, PF-1.4 3 Morgan Rancho Improvements 32885015650/2091288-0 200,000 32885015650/2091288-0 300,000 32885015650/2091288-0 0 520,000
10250015650/2091025-0 0 10250015650/2091025-0 20,000 10250015650/2091025-0 0
PF-1.1, PF-1.4 4 Station 173 ADA Improvements 32885015650/2093288-0 50,000 32885015650/2093288-0 855,000 32885015650/2093288-0 0 905,000
PF-1.1, PF-1.4 5 Station 173 Urban Park 32885015650/2094288-0 75,000 32885015650/2094288-0 125,000 32885015650/2091288-0 0 200,000
PF-1.1, PF-1.4 6 Station 174 ADA Improvements 32885015650/2092288-0 60,000 32885015650/2092288-0 0 32885015650/2092288-0 0 915,000
32825015650/2092282-0 0 32825015650/2092282-0 855,000 32825015650/2092282-0 0
PF-1.1, PF-1.4 7 Town Center Station 178 32885015650/1645288-0 17,103,700 32885015650/1645288-0 945,520 32885015650/1645288-0 0 18,533,360
10250015650/1645025-0 484,140 10250015650/1645025-0 0 10250015650/1645025-0 0
Fire District Totals:19,039,610$ 14,650,520$ 11,900,000$ 45,590,130$
Library
PF-1.1, PF-1.4, PF-3.1 1
Paul A. Biane Library-Second Story
and Beyond Project 13296015650/1867329-0 3,600,660 13296015650/1867329-0 1,899,340 13296015650/1867329-0 0 8,900,000
10250015650/1867025-0 0 10250015650/1867025-0 400,000 10250015650/1867025-0 0
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General Plan Reference(s)No.Project
Account Amount Account Amount Account Amount
CITY OF RANCHO CUCAMONGA - CAPITAL IMPROVEMENT PROGRAM - FISCAL YEAR 2022/23
Prior Yr Funding Total Project CostFuture/Unfunded2022/23 Funded
County Grant(329)0 County Grant(329)2,000,000 County Grant(329)0
Federal Grant (275)0 Federal Grant (275)1,000,000 Federal Grant (275)0
Library Totals:3,600,660$ 5,299,340$ -$ 8,900,000$
Police Department
PF-1.4, PF-7.1, S-1.1 1 ALPR Cameras 1017701-5603 0 1017701-5603 293,300 1017701-5603 0 293,300
PF-1.1, PF-1.4, S-1.1 2
Police Station Operational & COVID
related Lobby Improvements 1127701-5602 0 1127701-5602 170,000 1127701-5602 0 170,000
Police Totals:-$ 463,300$ -$ 463,300$
Public Works
PF-1.1, RC-7.3 1
Beryl Park East-Tennis Court LED Light
Rplcmt 1141303-5607 0 1141303-5607 69,000 1141303-5607 0 69,000
PF-1.4 2 Citywide Concrete Repair FY22/33 10013185650/1991001-0 1,375,000 10013185650/1991001-0 600,000 10013185650/1991001-0 900,000 5,618,150
11773035650/1991177-0 400,000 11773035650/1991177-0 100,000 11773035650/1991177-0 300,000
11983035650/1991198-0 0 11983035650/1991198-0 425,000 11983035650/1991198-0 0
12043145650/1991204-0 1,518,150 12043145650/1991204-0 0 12043145650/1991204-0 0
PF-1.1, RC-7.3 3 Citywide HVAC & Lighting Controls 10250015650/1978025-0 58,770 10250015650/1978025-0 150,000 10250015650/1978025-0 0 208,770
PF-1.1, RC-7.3 4 Civic Center HVAC-Plant Replacement 10250015650/2029025-0 179,500 10250015650/2029025-0 2,300,000 10250015650/2029025-0 0 2,479,500
PF-1.1 5 Civic Center Waterproofing 1025001-5602 54,500 1025001-5602 150,000 1025001-5602 0 204,500
PF-1.1 6
Council Chamber- Carpet & Seating
Replacement Facilities 1025001-5602 0 1025001-5602 30,000 1025001-5602 0 30,000
PF-1.1, PF-1.4 7
Family Resource Center Remodel-
Facilities 10250015650/2107025-0 0 10250015650/2107025-0 775,000 10250015650/2107025-0 0 775,000
PF-1.1 8 Fleet Shop-Rental Space 1025001-5602 70,000 1025001-5602 300,000 1025001-5602 0 370,000
RC-2.6 9
LMD 1-Drought Tolerant Landscaping-
Project Scoping Phase 11413035650/2056141-0 50,000 11413035650/2056141-0 50,000 11413035650/2056141-0 0 100,000
PF-1.1, PF-1.4 10 LMD 2 Park Upgrades RIRE Grant 11313035650/2102131-0 0 11313035650/2102131-0 250,000 11313035650/2102131-0 0 250,000
PF-1.1 11 LMD 2 Paseo Lighting Retrofits 11313035650/1716131-0 567,550 11313035650/1716131-0 250,000 11313035650/1716131-0 364,890 1,182,440
RC-2.6 12
LMD 2-Water Conservation/Landscape
Renovation 11313035650/1787131-0 863,030 11313035650/1787131-0 1,586,450 11313035650/1787131-0 2,208,000 4,657,480
RC-2.6 13
LMD 4R-Water
Conservation/Landscape Renovation 11343035650/1787134-0 617,960 11343035650/1787134-0 700,000 11343035650/1787134-0 2,208,000 3,525,960
RC-2.6 14 LMD 6-Drought Tolerant Landscaping 11363035650/2056136-0 50,000 11363035650/2056136-0 50,000 11363035650/2056136-0 0 100,000
Page 4 of 5Page87
General Plan Reference(s)No.Project
Account Amount Account Amount Account Amount
CITY OF RANCHO CUCAMONGA - CAPITAL IMPROVEMENT PROGRAM - FISCAL YEAR 2022/23
Prior Yr Funding Total Project CostFuture/Unfunded2022/23 Funded
PF-1.1, PF-1.4 15 PWSD Warehouse Expansion 10250015650/1927025-0 289,530 10250015650/1927025-0 0 10250015650/1927025-0 2,820,000 3,109,530
LC-1.7, RC-6.3 16 Red Hill Park-Solar Pathway Lighting 18487303-5607 0 1847303-5607 200,000 1847303-5607 0 200,000
PF-1.1 17
Traffic Signal Battery Backup System
Replacement FY22/23 11743035650/1980174-0 375,000 11743035650/1980174-0 127,500 11743035650/1980174-0 255,000 1,657,500
17120015650/1980712-0 450,000 17120015650/1980712-0 150,000 17120015650/1980712-0 300,000
PF-1.1, MA-2.8 18 Traffic Signal Modification 11743035650/2035174-0 176,000 11743035650/2035174-0 200,000 11743035650/2035174-0 600,000 976,000
Public Works Totals:7,094,990$ 8,462,950$ 9,955,890$ 25,513,830$
All Departments Totals:47,258,076$ 116,767,000$ 67,121,030$ 231,146,106$
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