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HomeMy WebLinkAbout2015/06/30 Comprehensive Annual Financial Report \ CITY OF . •:• ANCHO OUCAMONGA C A L I F O R N I A kL Jo COMPREHENSIVE REPORT d .� H - .,Np GUCqA, v c (` as 7 trouls _ • S N���`j Y Y FOR FISCAL YEAR ENDED JUNE 30, 2015 City of Rancho Cucamonga, California Comprehensive Annual Financial Report Year Ended June 30, 2015 Prepared by the City of Rancho Cucamonga Finance Department Tamara L. Layne Finance Director THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS INTRODUCTORY SECTION Letterof Transmittal ............................................................ ............................... CityOfficials ........................................................................ ............................... OrganizationChart .............................................................. ............................... Certificate of Achievement for Excellence in Financial Reporting ..................... FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT .............................. ............................... MANAGEMENT'S DISCUSSION AND ANALYSIS ............ ............................... BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements: Statement of Net Position ...................................... ............................... Statement of Activities ............................................ ............................... Fund Financial Statements: Balance Sheet - Governmental Funds ................... ............................... Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................ ............................... Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ........................... ............................... Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................................ ............................... Statement of Net Position - Proprietary Funds ...... ............................... Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds ............................ ............................... Statement of Cash Flows - Proprietary Funds ....... ............................... Statement of Fiduciary Net Position - Fiduciary Funds ......................... Statement of Changes in Fiduciary Net Position — Fiduciary Funds .... Notes to Financial Statements ...................................... ............................... Page Number ....... i xxxiv xxxv xxxvi -i 23 24 26 31 32 35 36 37 38 39 40 41 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Page Number REQUIRED SUPPLEMENTARY INFORMATION Notes to Required Supplementary Information ......................................... ............................... 103 Budgetary Comparison Information Budgetary Comparison Schedule - General Fund .............................. ............................... 104 Budgetary Comparison Schedule - Citywide Infrastructure Improvement ......................... 105 Budgetary Comparison Schedule — Housing Successor Agency ....... ............................... 106 Budgetary Comparison Schedule - Fire District .................................. ............................... 107 Pension Information: Schedule of Changes in Net Pension Liability and Related Ratios — Miscellaneous Plan - Agent Multiple - Employer Plan .......................... ............................... 108 Schedule of Plan Contributions — Miscellaneous Plan - Agent Multiple - Employer Plan ... 109 Schedule of Proportionate Share of the Net Pension Liability — Cost Sharing Multiple - Employer Plans ............................................... ............................... 110 Schedule of Plan Contributions —Cost Sharing Multiple - Employer Plans .......................... 111 Schedule of Changes in Net Pension Liability and Related Ratios — PARS Retirement Enhancement Plan ................................................ ............................... 112 Schedule of Plan Contributions — PARS Retirement Enhancement Plan ......................... 113 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds ................... ............................... 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ................................. ............................... 140 Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds: GasTax ............................................................................ ............................... Recreation........................................................................ ............................... ParkDevelopment ............................................................ ............................... Beautification.................................................................... ............................... LightingDistricts ............................................................... ............................... Landscape Maintenance Districts .................................... ............................... Transportation.................................................................. ............................... PedestrianGrant .............................................................. ............................... Community Development Block Grant ............................. ............................... Assessment Administration .............................................. ............................... San Sevaine /Etiwanda Drainage ..................................... ............................... Air Quality Improvement ................................................... ............................... South Etiwanda Drainage ................................................ ............................... Lower Etiwanda Drainage ................................................ ............................... Masi Commerce Center ................................................... ............................... MeasureI ......................................................................... ............................... LibraryServices ............................................................... ............................... Proposition 84 — Park Bond Act ....................................... ............................... AssetForfeiture ............................................................... ............................... 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds (Continued): COPSProgram Grant ......................................................................... ............................... DrainageFacilities ............................................................................... ............................... CAState Library .................................................................................. ............................... AB 2928 Traffic Congestion Relief ...................................................... ............................... LitterReduction Grant ......................................................................... ............................... SeniorOutreach Grant ........................................................................ ............................... UndergroundUtilities ........................................................................... ............................... Safe Routes to School Program ......................................................... ............................... COPSHiring Program Grant ............................................................... ............................... Foothill Blvd. Maintenance .................................................................. ............................... CA State Library Staff Innovation Fund Grant .................................... ............................... TheBig Read Library Grant ................................................................ ............................... Department of Homeland Security Grant ............................................ ............................... Public Resource Grants ...................................................................... ............................... Proposition1B ..................................................................................... ............................... Integrated Waste Management ........................................................... ............................... Proposition 42 — Traffic Congestion Mitigation ................................... ............................... Freedom Courtyard Resource Grant .................................................. ............................... Justice Assistance Grant Program ...................................................... ............................... Homeland Security Grant 2005 ........................................................... ............................... Used Oil Recycling Program ............................................................... ............................... Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds: Assessment District 82 -1 .............................................. ............................... Assessment District 84 -1 .............................................. ............................... CFD2001- 01 ................................................................. ............................... Etiwanda Equestrian Facility ......................................... ............................... CFD 2004 -01 Rancho Etiwanda ................................... ............................... CFD 2003 -01 Cultural Center ....................................... ............................... CFD 2006 -01 Vintner's Grove ....................................... ............................... CFD 2006 -02 Amador on Route 66 .............................. ............................... Combining Statement of Net Position - Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds ........ ............................... Combining Statement of Cash Flows - Internal Service Funds Combining Balance Sheet - All Agency Funds. Combining Statement of Changes in Assets and Liabilities - AIIAgency Funds .................................... ............................... 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 ...................... 197 ...................... 198 ...................... 199 ...................... 200 ...................... 201 ...................... 202 ...................... 203 ...................... 204 ...................... 206 207 208 212 218 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS STATISTICAL SECTION Financial Trends: Page Number Net Position by Component — Last Ten Fiscal Years ......................... ............................... 227 Statement of Activities (Condensed) — Last Ten Fiscal Years ............ ............................... 228 Fund Balances of Governmental Funds — Last Ten Fiscal Years ...... ............................... 230 Changes in Fund Balances of Governmental Funds - LastTen Fiscal Years ......................................................................... ............................... 231 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property .... ............................... 232 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ............................... 233 Principal Property Taxpayers — Current Year and Nine Years Ago .... ............................... 234 Property Tax Levies and Collections — Last Ten Fiscal Years ........... ............................... 235 Principal Sales Tax Remitters — Current Year and Nine Years Ago ... ............................... 237 Debt Capacity Ratios of Outstanding Debt by Type — Last Ten Fiscal Years ............ ............................... 238 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years ............................. 240 Direct and Overlapping Debt ............................................................... ............................... 241 Legal Debt Margin Information — Last Ten Fiscal Years ..................... ............................... 242 Pledged- Revenue Coverage — Last Ten Fiscal Years ........................ ............................... 243 Demographic and Economic Information: Demographic and Economic Statistics — Last Ten Calendar Years ... ............................... 244 Principal Employers — Current Year and Nine Years Ago .................. ............................... 245 Operating Information: Full -Time and Part -Time City Employees by Function — Last Eight Fiscal Years ............. 246 Operating Indicators by Function — Last Eight Fiscal Years ............... ............................... 247 Capital Asset Statistics by Function — Last Eight Fiscal Years ........... ............................... 248 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2015 Introductory Section THIS PAGE INTENTIONALLY LEFT BLANK Mayor L. DENNIS MICHAEL • Mayor Pro Tem SAM SPAGNOLO Council Members WILLIAM J. ALEXANDER, LYNNE B. KENNEDY, DIANE WILLIAMS City Manager JOHN R. GILLISON THE CITY OF RANCHO CUCAMONGA RANCHO CUCAMONGA December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga: It is with great pleasure that we present to you the City of Rancho Cucamonga's Comprehensive Annual Financial Report for the fiscal year ended June 30, 2015. The Comprehensive Annual Financial Report consists of three sections: introductory, financial and statistical. The introductory section includes this transmittal letter, a list of principal officials, and the City's organizational chart. The financial section includes the independent auditors' report, management's discussion and analysis (MD &A), the basic financial statements, notes to the financial statements, and combining and individual fund statements and schedules. The statistical section sets forth relevant financial and non - financial data depicting the City's historical trends and other significant facts. This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with generally accepted accounting principles (GAAP). As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Rancho Cucamonga's financial statements have been audited by Lance, Soll and Lunghard, LLP, Certified Public Accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Rancho Cucamonga for the fiscal year ended June 30, 2015, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Rancho Cucamonga's financial statements for the fiscal year ended June 30, 2015, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City of Rancho Cucamonga was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of Rancho Cucamonga's separately issued Single Audit Report. 10500 Civic Center Dr. • P.O. Box 807 • Rancho Cucamonga, CA 91729 -0807 • Tel (909) 477 -2700 • Fax (909) 477 -2849 • www.CityofRC.us December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to complement the MD &A and should be read in conjunction with it. The City of Rancho Cucamonga's MD &A can be found immediately following the report of the independent auditors. I. PROFILE OF THE CITY OF RANCHO CUCAMONGA General Information The City of Rancho Cucamonga currently has an estimated population of 174,064 and encompasses approximately 40.2 square miles. It is located between the cities of Upland to the west, Ontario to the south, Fontana to the east and is in the western section of San Bernardino County which is in the southern part of the State of California. The local economy includes a diverse business base of office, light manufacturing and distribution, and retail which emphasizes the City's efforts at attracting and retaining sales tax generating businesses to help provide a stable financial base. Government The City of Rancho Cucamonga (the City) was incorporated in 1977 as a general law city under the provisions of the Government Code of the State of California, and operates under the Council- Manager form of city government. The City officials elected at large include a Mayor and four City Council members, a City Clerk and a City Treasurer. The Mayor and Council members are elected on a staggered basis for a term of four years. There is no limit on the number of terms an individual can serve as Mayor or as Council members. The Mayor and City Council appoint the City Manager and City Attorney. Reporting Entity and Its Services The City has included within its reporting entity for financial reporting purposes all agencies for which the City is financially accountable. These agencies include the Rancho Cucamonga Public Improvement Corporation, the Rancho Cucamonga Fire Protection District, the Rancho Cucamonga Library, and the Rancho Cucamonga Public Financing Authority. The City provides accounting services to all these agencies. Additional information on these agencies can be found in Note La. in the notes to the financial statements. The City of Rancho Cucamonga is a general law city governed by the State of California Government Code and local ordinances and provides quality service by blending the talents of City staff and utilizing other agencies. Certain services necessary to continue the high quality of life in Rancho Cucamonga such as water, sanitation (i.e., sewage) and police are furnished by the County of San Bernardino and other specialized agencies. The City provides building safety regulation and inspection, street lighting and beautification, land use planning and zoning, housing and community development services, maintenance and improvement of streets and related structures, traffic safety maintenance and improvement, animal care and services, and a full range of recreational and cultural programs for citizen participation. The Rancho Cucamonga Public Improvement Corporation was established for charitable purposes including rendering financial assistance to the City by financing, acquiring, constructing, ii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga improving and leasing public improvements for the benefit of residents of the City and the surrounding area. The Rancho Cucamonga Fire Protection District was taken over from the County of San Bernardino as a subsidiary district of the City in July 1989 for the purpose of fire suppression within its boundaries. The Rancho Cucamonga Library became a part of the City when it withdrew from the San Bernardino County Library System in July 1994. It strives to inform and enrich our community by providing access to traditional and technologically innovative resources. It also supports and encourages education and the love of reading in a welcoming atmosphere with a knowledgeable, service - oriented staff. The Rancho Cucamonga Public Financing Authority was established to facilitate the financing and the refinancing of construction, expansion, upgrading and improvement of the public capital facilities necessary to support the rehabilitation and construction of residential and economic development within the City. On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ( "the Bill ") that provided for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Rancho Cucamonga that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government would agree to serve at the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 11, 2012, the City elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill. See Note 14 for more information on the Successor Agency Trust for the Former Redevelopment Agency. Local Economy The City is continuing to recover from past revenue declines with slow and gradual revenue growth. Key elements contributing to this growth include the following: • Unemployment levels continue to improve within Rancho Cucamonga at a faster level and are more favorable than the County overall and have returned to historical norms of 5% or less; • Steady increases in taxable sales of general merchandise that are expected to reach pre - recession peak levels sometime during FY 2015/16; • Continued increases in the City's net taxable value for property taxes; and • The housing market continues to recover with prices increasing, supply being at record lows, and strong demand occurring in all sectors including single and multi - family. Historically, Rancho Cucamonga's economic base has been one of the Inland Empire's strongest. Job and payroll growth have far exceeded regional and California rates since 1990. The City's competitive lease rates, transportation network and community amenities continue to attract businesses of all types. In addition to its manufacturing and distribution sectors, the City's commercial office sector has grown and vacancies continue to decline while rents are rising. Rancho Cucamonga has also seen a migration of highly educated technicians, professionals and executives over the past few years and many of the City's resident workers have jobs in management, professional, and technical occupations. The City is substantially underway in its economic development programs following the State of California's elimination of Redevelopment Agencies and tax increment financing statewide. The City is working with the business and real estate communities to maintain and rebuild effective iii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga economic development programs to promote private investment, job retention, and growth. See additional discussion under the "Highlights of Fiscal Year 2014/15" section — Economic Development. Budgetary Control The City adopts an annual budget where each department's budgeted appropriations are controlled at the character of expense level. These levels are defined as personnel services; operations and maintenance; capital outlay; debt service; cost allocation; and transfer out. Although the budget is monitored at the character of expense level, the legal level of budgetary control, that is the level at which expenditures cannot exceed appropriations, is the department level within the General Fund and at the function level for the Special Revenue, Debt Service and Capital Projects Funds. Budgetary control is further maintained by the use of an encumbrance system. Revenues are also estimated annually in the adoption of the annual budget. Revenues and expenditures are monitored throughout the year with quarterly updates provided to the City Council. Long -term Financial Planning Annually, the City updates a five -year Capital Improvement Program (CIP). Planned capital expenditures from special, non - operational funds for FY 2015/16 total $53,407,045. The CIP includes the construction of a new training facility for the Fire District; the relocation of the Rancho Cucamonga Family Sports Center; the Library's second floor Rancho KIDS Project; utility undergrounding on Base Line Road from Carnelian to Vineyard; the continuation of design and construction of Los Amigos Park; Base Line Road at I -15 Interchange capital improvements; local street pavement at various locations; and two traffic signal installations /upgrades along with an Intelligent Transportation System Upgrade - Citywide. Funding comes from multiple sources including Gas Tax funds, Measure I funds, Park Development funds, Transportation funds, Special Districts funds, capital reserves, and various grants. Cash Management Policies and Practices Cash not immediately needed to finance City operations during the year was invested in securities of the U.S. Government, or its agencies (e.g., bonds and notes of the Federal government and Federally- sponsored agencies), municipal bonds, commercial paper, corporate notes, and the State of California's Local Agency Investment Fund (LAIF) in accordance with State laws governing deposit of public funds. See Note 3 for a list of the City's authorized investments. 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 is structured to provide safety of principal and liquidity, while then providing a reasonable return on investments. Debt Administration The City of Rancho Cucamonga, as a general law city, is restricted from incurring general obligation bonded indebtedness that would exceed 3.75% of the total assessed valuation of all real and personal property. As of June 30, 2015, the City of Rancho Cucamonga does not have any bonded indebtedness. iv December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Risk Management During Fiscal Year 2014/15, the City of Rancho Cucamonga continued its commitment to risk management programs for safety, general liability, workers' compensation and loss prevention. Aggressive claims handling and a strong litigation stance have assisted in maintaining an appropriate reserve for current and future claims payments. Various risk control techniques, including employee accident prevention training, employee wellness seminars and fairs, safety programs and employee hazardous identification programs, have continued to minimize accident - related losses and exposure by the public. The City of Rancho Cucamonga is self - funded for the first $500,000 of loss for general liability claims as well as employment practices liability claims and purchases coverage for losses ranging from $500,000 to $35 million. For workers' compensation claims, the City is self - funded for the first $300,000 and purchases coverage for losses ranging from $300,000 up to statutory limits. Pension and Other Post - Employment Benefits The City and the Fire District provide pension benefits for all employees through a statewide plan managed by the California Public Employees Retirement System (Ca1PERS). They also provide a supplemental retirement plan for certain miscellaneous employees through the PARS Retirement Enhancement Plan. Additional information on the two plans can be found in Notes 9 and 10 in the notes to the financial statements. The City does not provide other post - employment benefits (OPEB); however, medical coverage is provided to Fire District personnel and their dependents upon retirement. The Fire District provides those post - employment benefits through the California Employers' Retiree Benefit Trust (CERBT). Additional information on OPEB can be found in Note 11 in the notes to the financial statements. The PARS plan has a net pension asset, as opposed to many other agencies which have a net pension liability, and the OPEB plan has a net asset, as opposed to an obligation, due to pre - funding for both of these plans which occurred in prior years. This somewhat unique funding status of the two plans speaks to the strong financial management demonstrated by the City Council and its management team. II. HIGHLIGHTS OF FISCAL YEAR 2014/15 Economic Development The Community Development Group has become the lead for pursuing economic development programs and opportunities. Community Development currently provides coordination and support for companies and real estate professionals pursuing site acquisition, and business relocation and expansion. Also, within Community Development is the Rancho Cucamonga Municipal Utility (RCMU). RCMU plays an important role in economic development activities offering an economic development incentive rate that targets high electric users that are also large employers. In March 2015 the City Council approved the update to the City's Economic Development Strategic Plan. The Plan identifies seven priority areas for economic development activities in the City over the next five years. The Plan also recognizes ongoing efforts that support v December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga business attraction and retention. The City is making progress with some of the recommendations of the Plan that suggest mixed use zoning be considered to revitalize declining retail locations and encourage job growth. The City also continues their partnership with the Small Business Development Center (SBDC) to provide technical assistance and guidance to existing and startup businesses and residents in the community. These services are free of charge and are offered on a confidential and long term basis. During the 2014/15 fiscal year, the SBDC met with 149 clients, and provided 292 hours of technical and professional advice. This lead to 5 jobs being created and 9 jobs retained. The SBDC also hosted 12 workshops on various business topics and 1,117 people attended these workshops. Successor Agency On February 1, 2012, the Successor Agency to the Rancho Cucamonga Redevelopment Agency was formed as a result of the State's action to eliminate Redevelopment Agencies in California. The Successor Agency assumed all of the duties and responsibilities of the former Redevelopment Agency and is tasked with winding down the Agency's activities. Since June 2011, the Successor Agency has been restricted from entering into any new contract. As a result of the elimination of redevelopment, the Successor Agency has worked this past year to successfully complete existing projects and to maintain one affordable housing program. The Successor Agency submitted ROPS 14 -15A and ROPS 14 -15B. In October 2014, per the approved Long Range Property Management Plan (LRPMP), the Successor Agency successfully transferred the Cultural Center expansion property to the City to be used for public purposes. The Successor Agency also transferred the remaining Tax Allocation Bond proceeds to the City which is being used to fund the construction of the Base Line Road and 1 -15 freeway interchange improvements. Affordable Housin Due to the elimination of redevelopment, the City has limited affordable housing resources and has had to make difficult decisions involving the termination of many of its successful programs. For example, the City's First -Time Homebuyer Program. This program assisted over 117 families become homeowners. Affordable rental housing for families who want to live and work in Rancho Cucamonga also continues to be a challenge. The elimination of redevelopment significantly diminished ongoing housing resources. Despite the lack of these resources, a portion of the loan between the City and the former Redevelopment Agency, as well as proceeds from housing bond funds, are the two primary sources of revenue available for housing programs and projects. These potential funding sources are significantly less than what redevelopment had access to in the past and these sources are one time money and not available for on -going programs. Affordable Rental Housing Opportunities These funds have allowed the City to enter into an agreement with 7418 Archibald LLC to build 59 affordable senior housing units plus one manager unit. The Housing Successor Agency will vi December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga contribute $4,360,908 of its housing bond proceeds to allow for the project to remain affordable for a term of 55- years. The affordability restrictions for the 59 units are as follows: Senior Housing Affordability Summary % of Area of Median Income Number of Units Offered Maximum eligible income Maximum monthly rent 30 Percent 6 $15,600 $390 40 Percent 12 $20,800 $520 50 Percent 24 $26,000 $650 60 Percent 17 $31,200 $780 The developer has applied for 9% tax credit financing in June 2015 but was not successful. Per the terms of the Agreement the developer will apply again for tax credits in 2016 order to obtain the additional funding needed to construct the project. Northtown Housing Development Corporation was able to compete and receive tax credit funding to rehabilitate and upgrade the 88 units at Villa del Norte. The Housing Successor Agency did not contribute any new funding for this effort, but did agree to continue to subordinate its loan in order for the tax credit funding to be received. Prior to the elimination of the redevelopment agency, the agency had partnered in the construction and funding of nearly 1,800 affordable units. The following accomplishments were achieved and are now held as assets of the Housing Successor Agency: Family Housing • Las Casitas Apartments —14 units • Mountainside Apartments — 188 units • Monterey Village Apartments — 110 units • Pepperwood Apartments — 228 units • Rancho Verde East Expansion — 40 units • San Sevaine Villas — 225 units • Rancho Verde Apartments— 104 units • Sycamore Springs Apartments — 96 units • Villa del Norte Apartments — 88 units • Sunset Heights Apartments — 116 units • Villaggio at Route 66 — 131 units Senior Housing • Heritage Point Apartments — 48 units • Olen Jones Apartments — 96 units • Villa Pacifica Apartments — 158 units Under a current Exclusive Negotiating Agreement between the Housing Successor Agency and Lewis Operating Corporation, the two are looking to partner with a non - profit housing developer for a Senior Affordable Housing project on 4 acres of land generally located at the northwest corner of Base Line Rd. and Day Creek Blvd. (Commonly known as the "Base Line /Day Creek Property). vii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga It is anticipated the partnership will select a non - profit housing developer in Fiscal Year 2015/16. Housing Bond proceeds and land owned by the Housing Successor Agency with covenants to only building affordable housing will be used for the development of this project. Additional Housing Programs /Activities A secondary source of funding is received from residual receipts generated from existing housing loans the former redevelopment agency negotiated. These funds have allowed the City to implement and manage a Mobile Home Rental Assistance Program. This program provides up to $100 in assistance for the space rental payment for mobile home owners. The program operates in all eight of the mobile home parks located in the City and assists approximately 73 families. Engineering Services The Department is comprised of one lead section, the Engineering Administration Section, headed by the Director of Engineering Services /City Engineer, and five subordinate sections. The following provides highlights of the major accomplishments achieved during the reporting period and a description of the major capital projects completed. Administration Division In addition to overseeing the operations of the Engineering Services Department's full -time and part-time employees and $39 million in combined operating and capital budgets, the Engineering Administration Section managed several significant projects this year. Key items this year included updating the City's comprehensive Capital Improvement Program (CIP) document; administering the paid parking programs at the Rancho Cucamonga Metrolink station and Cucamonga Canyon; assisting the Principal Engineer with drafting a pavement ordinance; conducting research on utility pole attachments for the Municipal Utilities section; and working with the county on gathering information for possibly extending the paid parking program to the North Etiwanda Preserve area. Capital Improvements Division The Capital Improvements Section is responsible for the development and implementation of the City's Capital Improvement Program and the design, inspection and contract administration of various City - funded public improvement projects including paving, curb and gutter, sidewalks, landscape and irrigation, storm drains, traffic signals, City buildings, and park facilities. A major accomplishment for the Capital Improvements Section for Fiscal Year 2014/15 was the completion of the Wilson Avenue Extension Project which improves public safety response as well as traffic congestion during school drop -off and pick -up periods. The City utilized Local Developer and Measure I Funds to finance this project. A continued priority for the Section has been maintaining the Annual Comprehensive Capital Improvement Program document which gives a five -year forecast for each active capital endeavor budgeted by the City. A total of 19 Capital Improvement Projects amounting to just under $7 million were completed during Fiscal Year 2014/15. The following, in addition to the above, are the other key capital projects that were completed during Fiscal Year 2014/15: viii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga • Local Street Pavement Overlay and Slurry Seal • ADA Improvements at various locations throughout the City • Sidewalk improvements for 51 bus stop locations • Day and Deer Creek Channel Bike Trail improvements • 9th Street and Baker sidewalk improvements • Ramona Avenue Storm Drain and Pavement Rehabilitation from Foothill Blvd. to south of the Pacific Electric trail • SLD 8 LED Street Light Replacement • 19th Street Pavement Rehabilitation from the West City Limits to Haven Avenue Transportation Development Division The Transportation Development Section oversees the design, installation, and operation of the City's traffic circulation and traffic control facilities, traffic studies, traffic counts, traffic permit issuance, and investigation of citizen concerns. The Transportation Development Section continues to provide management services on behalf of the City on the I -15 / Base Line Road Interchange Improvements Project. This project is currently under construction and is expected to be completed in 2016. The Section is currently managing the implementation of the initial phase of the Traffic Management Center Upgrade, the upgrade of traffic signal phasing at various intersections on Milliken Avenue and Day Creek Boulevard, and the installation of traffic signal improvements at the intersections of Carnelian Street at Banyan Street and 6th Street at Utica Avenue. Land Development Division The Land Development Section is responsible for the review and conditioning of proposed developments, as well as the technical plan check, permit issuance, and construction inspection of developer - funded public improvements such as paving, curb and gutter, sidewalks, landscape and irrigation, storm drains, traffic signals, and park facilities. In addition to the normal Land Development responsibilities being on the increase, staff has the task of working with Information Services in implementing, administering, and maintaining the new Accela land management software. Environmental Programs Division The Environmental Programs Section is responsible for administering the City's environmental programs which aim to encourage the preservation of natural resources and prevent storm water pollution, thereby ensuring compliance with state and federal mandates such as AB 939 and the National Pollutant Discharge Elimination System (NPDES). Highlights for this year include providing service to 5,754 participants at the Household Hazardous Waste Collection Facility, conducting over 900 storm water inspections, and processing 23 Construction and Demolition Diversion Deposit reimbursement requests. This year the section applied tax assessments and title liens on 244 properties to recover approximately $86,211 in delinquent trash account payments on behalf of the City's franchised waste management company. ix December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Municipal Utility Division The Rancho Cucamonga Municipal Utility (the Utility) operates as a small electric utility providing electric service to both commercial and residential developments including the Victoria Gardens Regional Center as well as surrounding retail and commercial developments that were built within the Utility's service territory. The Utility has 900 metered customers and continues to provide excellent customer service to all its customers. The utility most recently extended almost 8,000 feet of distribution circuit, placed 4 Pad Mounted Equipment switches, and installed 19 new LED streetlights along Arrow Route from Rochester Avenue to Etiwanda Avenue. The utility continues to embark on its mission to be a greener utility by utilizing renewable energy as part of its energy portfolio. The utility recently completed a 125 kW solar PV carport installation in the north employee parking lot at City Hall. Public Works Services The Public Works Services Department is the steward of the City's growing infrastructure of buildings, streets, storm drains, parks, and landscape improvements. To fulfill its broad mandate, the Public Works Services Department is headed up by the Public Works Administration Division which is charged with the management of three subordinate divisions: Facilities Maintenance; Streets, Fleet and Storm Drains Maintenance; and Parks and Landscaping Maintenance. The following are the highlights within the Public Works Services Department during Fiscal Year 2014/15: Administration Division In addition to overseeing the operations of the Public Works Services Department's 170+ full -time and part-time employees and over $31 million in combined operations and capital budgets, the Public Works Administration Division managed several significant projects this year. Key items this year included: working to reduce costs in LMD 1 and PD -85 due to funding shortfalls; research and analysis into the ramifications of being in the third year of the drought and anticipated mandatory water reduction goals by the Governor; accepting a grant from the Mobile Source Air Pollution Reduction Review Committee (MSRC) in the amount of $113,990 for the expansion of the CNG station and bicycle locker installations; continuing to improve the workflow for contracts and professional services agreements; and assisting the other divisions with the compilation and bidding of capital improvement projects and service contracts. The Administration section also accepted rebates in the amount of $176,307 for turf removals primarily in LMDs 1 and 4R. Facilities Maintenance Division Victoria Gardens Cultural Center Wall Tile Replacement Project—Portions of the exterior tile along the east side of the Victoria Gardens library building were repaired and replaced due to weathering of the elastomeric joint sealant along the tile edge. Additional repairs to the Cultural Center will occur during FY 2015/16. Civic Center – Roof System Restoration Project —The existing low slope roof sections had to be removed and restored with the installation of Title 24 compliant and Energy Star rated off white reflective roof coating over polyester reinforced fabric, as well as replacement of the existing roof flashing and elastomeric sealant. This project was completed in May 2015. x December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga City Council Chambers Media Revitalization Project —Phase one of this project included replacing the outdated audio visual system with a new digital system that is much more reliable and stable. In addition, the backbone infrastructure and system components provide a better experience for the live audience, home viewers, council members and city staff. Provided funding is available, phase two of the project will occur during FY 2016/17. Civic Center Exterior and Parking Lot Lighting Project —Light fixtures located in the three parking areas at the Civic Center (north employee lot, public parking deck, and south employee lot) were replaced with new energy efficient LED lighting fixtures. Installation of Bike Lockers —As mentioned earlier, Public Works Services staff completed the installation of ten new Healthy RC bike lockers at the Metrolink Station — bringing the total to 20. This project was a Public Works Department wide effort with Parks staff completing the removal of the plants and ground cover needed for this area. Streets staff completed the install of the concrete pad, the Facilities staff delivered and installed the new Bike lockers and Public Works Administrative staff researched and ordered the bike lockers for the project. As mentioned earlier, MSRC grant funding helped offset the cost of these new bike lockers. In addition to the numerous capital projects happening, there were also several large service contracts awarded including: guard services, mechanical engineering services, architectural, electrical, and structural engineering services. Streets, Fleet, and Storm Drain Maintenance Division The Illuminated Street Name Sign Replacement program continued into FY 2014/15. The locations in this most recent phase included finishing Foothill Blvd. as well as San Bernardino Road to the west and Aspen Avenue to the east. The scope of work included retrofitting Illuminated Street Name Signs with LED lighting, replacement of damaged signs and/or individual sign panels, and relocation of complete illuminated street name signs from mast arm mounting to sign davit arm mounting. This project promotes energy efficiency by continuing to retrofit the illuminated street name signs with more energy efficient LED lighting. CNG Station Expansion: The design for the CNG station expansion began in FY 2012/13 and construction began in FY 2013/14 and continued into FY 2014/15. It reached completion in FY 2015/16. This expansion consists of an additional compressor and a fuel management system that will make it possible to accommodate fast filling vehicles for other entities and back charging them for our costs as well as 29 time -fill stations, overhead LED lighting, a nearby telephone system to report emergencies and an emergency shut off near the fuel management system. As mentioned earlier, grant funding from the MSRC partially funded the construction of this phase. Vehicle Purchases: The City Council authorized the purchase of the following replacement vehicles: one wheel loader, two 1 -ton stake bed trucks, one '/2 ton pickup truck, one CNG 3/4 ton SRW Utility Truck, one CNG One Ton DRW Extended Cab Utility Truck, and one backhoe loader. Sidewalk Inspection Program: During FY 2014/15 the previously established 24 area grids covering the city were re- inspected. The information that was gathered from these inspections is used to identify and schedule permanent repairs of sidewalks, curb and gutters, and drive approaches annually. The Department's proactive approach to aging sidewalk infrastructure has greatly reduced the City of Rancho Cucamonga's liability. Stop Sign Retro- reflectivity Testing: The retro - reflectivity inspections of stop signs citywide was completed and the replacement of stop signs not meeting the minimum retro - reflectivity requirements were replaced. xi December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Storm Drain Inspections /Cleaning: As a requirement of the Clean Water Act, staff must inspect storm drain catch basins annually and remove debris if it is 25% or greater of the catch basin's capacity. These requirements are part of the National Pollutant Discharge Elimination System (NPDES) permit program which controls pollution by regulating point sources that discharge pollutants into waters of the United States. In FY 2014/15, a total of 4,174 catch basins were inspected and 166 catch basins required cleaning. Many smaller projects were completed during FY 2014/15 including: asphalt repairs, concrete sidewalk and curb /gutter repairs, graffiti removal, street sweeping, storm drain inspections and cleaning, traffic sign retro - reflectivity inspections, traffic sign installations and repairs, traffic legend repaints, chemical and mechanical weed abatement, debris removal, assisted with special events, mechanic on -call emergency response and streets on -call emergency response. The traffic signal maintenance contract was re -bid during FY 2014/15 and was awarded to the incumbent contractor. Parks and Landscape Maintenance Division Drought Update —Staff started to identify and implement locations within the parks, paseos and landscapes that could lower the water consumption through water use reduction and turf repurposing. Staff also installed signage within these areas to inform the public of the drought conditions and re- landscape process. City -wide Parks Painting Project— The scope of work included the painting of the exposed wood portions and columns of the shade shelters at Ellena Park (LMD 2), Spruce Park (LMD 4R) and Day Creek Park (LMD 10); painting of hand railings under the Milliken Avenue/Metrolink Railroad Underpass (LMD 313); painting of the restroom buildings at Summit Park (CFD 2000 -03), Ellena Park and Spruce Park); painting the wood and block portions of the trash enclosures at Ellena Park, Spruce Park, and Rancho Summit Park and painting the wood portions of five benches at Rancho Summit Park. LMD -5 Playground Improvement Project— Several improvements were made in FY 2014/15 to the neighborhood playground area at Andover/Bedford including: replacing the 30 -year old fence and adding concrete curb along the base of the fence to reduce future corrosion of the fence posts; relocation of the water main; addition of a flow sensor valve; a new Calsense controller; lowering the grade in the turf, upgrading the irrigation system; new sod and a new metal bench. Turf Removal Rebate Program—As an added incentive to encourage conservation, the Metropolitan Water District (MWD) began offering rebates of $3 per square foot for turf removal. Due to the 90 -day turnaround on the completion of each area, staff identified 11 of the highest water use areas primarily within LMDs 1 and 4R and had the landscape contractors remove the turf and replace it with a drought tolerant plant palette and much totaling 58,769 square feet of turf. This project removed 58,769 sq. ft. of turf primarily in medians and parkways and resulted in $176,307 in rebates received. These funds will go directly back to the districts they represent and will be used for additional water conservation measures. It is anticipated that MWD will offer additional rebates next year. LMD 4R Playground Seat Wall —A playground seat wall was constructed at Ralph Lewis Park to help eliminate soil erosion from the surrounding landscaping which will help to minimize the maintenance of the sand material within the playground. The seat wall will also double as a place where park patrons can sit while visiting the playground. LMD 4R Paseo and Park Security Lighting Retrofit —The scope of work included the removal of 17 existing paseo lights including poles and foundations followed by the installation of 17 xii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga new energy efficient LED light fixtures on a 10' high pole. In addition, a total of 23 park lighting fixtures at Milliken Park were replaced with inductive light fixtures. The new lighting fixtures are projected to use approximately one third the amount of electricity consumed by the lighting fixtures they replaced. Additional maintenance cost savings will also be realized due to the significantly longer service life of the new fixtures. LMD 4R Playground Rubberized Surface Repairs /Replacement —Areas of the rubberized surfacing at West Greenway Park were repaired/replaced during FY 2014/15. The City uses playground rubberized resilient surfacing at several park playgrounds throughout the City. Due to normal wear and tear, the playground surfaces at several parks throughout the City were repaired by removing worn and aged areas and replacing them with new rubberized material. Landscape Design for LMD 2 and LMD 4R and Civic Center: Another way the City is reducing costs in landscaped areas is to use more low water or drought tolerant landscape designs. During FY 2013/14, a landscape architect was hired to look specifically at the landscape areas in LMDs 2 and 4R, as well as the Civic Center, for ways to transition these sites to a more sustainable plant palette. During FY 2014/15, all the designs for LMDs 2 and 4R, as well as the Civic Center were completed. The design for LMD 4R was used as part of the Turf Removal Rebate Program to meet the rebate requirements and to introduce the new low water landscape design into the community. The design for LMD 2 and Civic Center will be used for potential turf removal rebates if they are offered again in FY 2015/16. The LMD 2 design will be used as part of the drought requirements for medians and at the Civic Center as part of the new low water use landscape facelift. Planning The Planning Department functions as the professional and technical advisor to the Planning and Historic Preservation Commission and the City Council on policy matters and issues concerning the physical development of the community. The department focuses on proactive long -range planning to recognize and solve problems before they occur and take advantage of opportunities; to support City goals, objectives, policies, and programs; and to actively promote retail and commercial expansion by attracting new services to the City. We are very proud that one of our Planning Commissioners is serving as the current President of the "Planning and Community Development Department" of the League of California Cities for 2015. As development is a team effort, the Department coordinates activities among the other departments including Engineering Services, Fire Construction Services, Building and Safety Services, and the Police Department to ensure that development is safe, orderly, of the highest standard, and conducive to the business and residential community. The department assisted over 7,800 residents, developers and business owners at the counter and received over 7,000 telephone calls in Fiscal Year 2014/15. The Planning Department processed a wide variety of projects during the fiscal year. The following are some of the highlights of those projects as well as some of the many special projects that have taken place: • The Goodman Logistics Center, comprised of two logistics buildings with a combined floor area of about 1.6 million square feet at the southwest corner of Arrow Route and Etiwanda Xiii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Avenue, was recently completed in mid -2015. The tenant for both buildings, Georgia Pacific, began operations shortly thereafter. • Lennar Homes is currently constructing a single - family residential subdivision of 231 homes on the north side of Arrow Route about 525 feet east of Etiwanda Avenue. Construction began in early 2014 and about 50% of the homes have been completed. • The City is currently reviewing a proposed amendment to the Rancho Cucamonga Industrial Area Specific Plan (IASP) Subarea 18 Specific Plan that was submitted by SC Rancho Corp., an entity of Lewis Operating Corp. in January 2015. Referred to as the "Empire Lakes Specific Plan ", the applicant proposes a project that will be comprised of a combination of high density residential, commercial, and office uses in an "urban" setting on a property currently developed with Empire Lakes Golf Course located north of 4th Street, west of Milliken Avenue, east of Cleveland Avenue, and south of 8th Street and the BNSF / Metrolink rail line. • The Planning Department is currently working on two studies relating to the Metrolink station. The first (referred to as " Metrolink West "), a partnership with the Southern California Association of Governments (SCAG), will study the feasibility of adding another station at the intersection of the Metrolink line and Haven Avenue, and the potential for high density, mixed use and transit - oriented development in the vicinity of this intersection. The second (referred to as " Metrolink East "), a partnership with the San Bernardino Associated Governments (SANBAG), will explore various concepts for a high density, mixed use and transit - oriented development in the vicinity of the current Metrolink station near Milliken Avenue. • The Planning Department recently completed the creation of technical standards that will apply to future mixed use development in the City. These standards were reviewed and approved by the City Council in fall 2015. • On May 20, 2015, the City Council approved a Professional Services Agreement with Sargent Town Planning for the development of the North Eastern Sphere Annexation Project, a proposal to annex approximately 4,115 acres of the City's Sphere of Influence. Approximately 2,915 acres of the annexation area could remain as open space area or for very limited development and the remaining 1,200 acres, generally located between Milliken Avenue and Day Creek Boulevard, could be developed as a vibrant residential "village" with neighborhood services and a distinct sense of place. Specific land uses, the types of development, and the number of dwelling units and square footage will be evaluated during the planning process. • KB Homes is building 76 single - family residences on a property of 53 acres located at the east side of East Avenue, about 150 feet north of the 210 Freeway. Construction began in late 2014 and about 50% have been completed. • Planning staff continues to regularly update and fine tune the Development Code to clarify standards and respond to changing land use conditions as well as state legislation. Two separate code updates were approved by the City Council this year. • The continued implementation of the Community Development Block Grant (CDBG) program is facilitated by Planning Department staff. The City received $783,677 in Housing and Urban Development funds. These funds were allocated to various Public Works, Home Improvement, and Public Services activities, including some salary allocations. Approximately 80% of the City's CDBG funding is allocated to activities that benefit persons of low- and moderate - income. • Planning continues to focus on updating and using the land management software system Accela with many applications being added. The public portal, Accelerate, allows users to apply for a permit and pay fees online. Electronic Document Review (EDR), which allows applicants to upload electronic plans for review and comments, is currently in use. One of the Planning staff members is continuing a 2 -year term as the Southern California Regional User xiv December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Group Lead. She works directly with Accela to coordinate the quarterly Regional User Group meetings and develops contacts throughout southern California. In addition, she participated in two (2) presentations at the annual Accela User Conference in Los Angeles, and as a result Rancho Cucamonga has shared our implementation experiences and hosted product demonstrations for several cities including Virginia Beach, VA, Moreno Valley, Huntington Beach, Culver City, Santa Barbara County, San Bernardino County and Boise, Idaho. In late 2014, the State of California updated regulations for massage establishments allowing cities to resume land use control. The Planning Department presented to City Council an emergency ordinance to require all massage establishments to obtain a Conditional Use Permit. In addition, staff has been working on a multi - department task force to inspect the establishments and bring them into compliance with City codes. The Planning Department helped coordinate the "Point In Time" physical count of the homeless population in the City in conjunction with San Bernardino County on Thursday, January 22, 2015. Staff members assisted in the count starting at 6:OOa.m. and finalizing at 10:00a.m. using City Hall as the base of operations. The Planning Department has partnered with Cucamonga Valley Water District (CVWD) in presenting information to the public regarding the water issues and the current drought that was declared by the Governor of California. Working together, staff did a display of historic water artifacts at the Archibald Library during late spring and then again in a large display in the display cases in front of the Council Chambers. It spotlights both current water efficient practices as well as historic measures that were used in the past. In addition, one of our staff members has participated for over 5 years in assisting CVWD with their annual Landscape Beautification Contest that recognizes those landscapes that are water efficient and practical as well as beautiful and within city guidelines. Historic Preservation The Planning Department continues to monitor and update the Local History website "Portal to the Past ". This product of a joint grant with the Library Services Department enables staff to continue to add stories and recollections of residents as well as pictures of the past history of our City. It can be accessed through the City's website at the following link: https: / /www.cityofrc.us /about /local history /default.asp. Local History Night was celebrated on Friday, June 12th, 2015, at the Biane Library, in the Victoria Gardens Cultural Center. Approximately 300 people attended the event enjoying various types of activities including the Silverados musical band, Jim Curatalo, the President of Cucamonga Valley Water District, who spoke about water history in our city, the performers Razzle Bam Boom that did a show on "H2O, Where Did You Go ? ", a vintage fire truck / antique car display, Fire Marshall Rob Ball spoke about interesting facts about the history of firefighting, and a kid's crafting table. The historic Richfield Service Station on Foothill Boulevard, just west of Archibald Avenue, has been reconditioned and improvements have been made by the Route 66 IECA (Inland Empire of California Association) a preservation society. It is anticipated that the gas station will become an historical destination with a visitor's center and museum for Route 66 memorabilia. xv December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Building and Safety The Building and Safety Department provides plan checking, inspection and permit activities for construction projects to meet State Model Codes including building, fire, ADA, energy, grading, plumbing, mechanical and electrical codes. Building and Safety continues to enhance the use of the new Accela permit software that helps to expand its use to on -line permit processing fee payments and inspection requests, which allows customers to access permit and inspection information 24 hours a day, 7 days a week. The department conducted over 18,326 inspections, responded to over 1,000 complaints and investigations, and issued over 5,634 permits during the 2014/15 fiscal year. Administration Services The Administration Services Section continues to improve communication with customers by enhancing public relations through website development, providing user friendly forms online, creation and design of an informative department brochure, revision and updating forms and handouts. An additional service provided by this division is the administration of the ADA compliant program for the City owned facilities. Building Inspection The Building Inspection Section provides building and fire inspections for all construction projects on private properties including work inside mobile home parks. In addition, this unit works with Community Improvement Unit to abate properties that are vacant and abandoned due to foreclosed activities. Plan Check and Permit The Plan Check and Permit Section continues to provide permit services for thousands of projects annually. The new Accela permit software has enhanced the process tremendously. More than 3,571 applicants have registered for the use of the new software in the permit and inspection processes. Additionally, the Plan Check Section performs Wildland Interface reviews within the Very High Fire Hazard Severity Zones, and they continue to work diligently with the Fire District to help local businesses come into compliance with the current fire codes while minimizing the potential disruption to their business. Grading Services Our Grading Services Section provides review and approval of rough and precise grading plans for construction of residential and commercial projects. This section meets with developers, neighborhood groups and local residents to discuss plans and proposed projects, along with investigating complaints regarding a wide variety of building and construction. Additionally, this section continues to provide cross department support to the Engineering and Planning Departments, with project review during the entitlement process, performing reviews of xvi December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga the Storm Water Quality documents, and acting as the City Land Surveyor for the Engineering Services Department. Communitv Improvement This year, the Code Enforcement Division was transitioned to a new division entitled Community Improvement, a manager was recruited and the group was moved under the direction on the City Manager. The name change reflects the commitment of the City to the continuous improvement of the community, whether that is residential, recreational, or commercial. The emphasis is on increasing awareness about property maintenance and connecting residents with resources for maintaining and improving the quality of life for residents, customers and guests in Rancho Cucamonga. Officers in Community Improvement have continued to provide excellent service to the community in challenging circumstances. There has been a significant change in staffing during the year, with several officers accepting promotional positions in other jurisdictions. The continuing staff members have worked extremely hard to maintain the high standards of timely responses and diligent follow -up during recruitment efforts. The staff has received additional support from Building and Safety inspectors in making inspections and providing timely responses. The volunteers in Community Improvement have continued to provide excellent support to the staff and show their commitment to the beauty and safety of the community. The three volunteers continue to remove numerous signs from the right -of -way, support shopping cart removal, and complete other tasks as they are assigned. Promoting a healthy, safe and clean environment is the focus of Community Improvement and enforcement of the Municipal Code will continue to be an important tool in that effort. During the 2014/15 fiscal year, Community Improvement Officers responded to 3,006 reports of violations in the City, conducted 4,415 inspections, and successfully resolved 2,870 incidents. Community Services Senior Services The motto of the James L. Brulte Senior Center is Stay Healthy, Live Longer. Thousands of seniors in Rancho Cucamonga have embraced this philosophy for life and are active participants at our dynamic Senior Center. Every September, the Senior Center is center stage in the community, displaying all it has offer during National Senior Center Month celebration. During the month long celebration, the various Senior Center's programs are highlighted with each week featuring at least one free special event. From the core senior services programs, the daily Senior Nutrition program and the Silver Fox Express Transportation Program, to the variety of recreational and health & wellness programs, the Senior Center is a vital resource in Rancho Cucamonga throughout the year only with support from hundreds of volunteers, partners and the 16 member Senior Advisory Committee. Wellness Pass has continued to be extremely popular and, since the 2013 expansion, our participation has increased 36 %. xvli December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Cultural and Performine Arts The Lewis Family Playhouse at the Victoria Gardens Cultural Center completed its ninth season presenting a wide variety of performances for all ages and interests, offering a great menu of entertainment options including music, dance, comedy, family theatre, and Broadway -style musicals. The Rancho Cucamonga Community Theatre brought three delightful new productions to the stage this year: Roald Dahl's Willy Wonka, Sing -a- Long -A Sound of Music, and The Taming of the Shrew. Broadway at the Gardens presented Cabaret and Sondheim On Sondheim this year. Additionally, the City's own theatre company, MainStreet Theatre Company produced three shows including. The Three Little Pigs, The Prince and the Pauper, and Fancy Nancy the Musical. The Playhouse also presented 18 touring artists throughout the season including Capitol Steps. David Benoit, Rockapella, Travis Tritt, Blind Boys of Alabama, Choo Choo Soul, and Arturo Sandoval. The Lewis Family Playhouse upgraded to an ETC Gio lighting console and Net 3 lighting network in May 2015. The previous lighting system was beginning to fail at the end of its projected 10- year lifespan. The new, ETC lighting system provides a state of the art, stable platform to serve the lighting needs of the Cultural Center for years to come. Special Events and Special Projects Last year, over 25,000 community members attended the Department's major community -wide special events. These special events included: 4th of July Fireworks Spectacular, Movies and Concerts in the Park, World Music Concerts, Founders Festival Community Parade, Veteran's Day Celebration, Cinco de Mayo Celebration, Cucamonga Challenge and Celebration of National Physical Fitness Month, and Springtime Movies in Town Square at Victoria Gardens. Contract Classes The Community Services Department has the largest contract class program in San Bernardino County. This year the program offered a variety of recreational, leisure time classes such as: Music, Dance, Fitness, Dog Obedience, Child Development, and Arts & Crafts. Classes were offered at City facilities and local studios. Over 5,000 participants registered in classes during the past year with a majority of classes focusing on supporting a Healthy RC lifestyle. Sports The Sports Division provides a wide variety of sports activities for Pee Wee, Youth and Adults within the Community. Over 1,550 Pee Wee participants, participated in programs such as: Soccer, Baseball, and Basketball. A range of Adult Sports Leagues, such as Adult Softball and Basketball along with drop in Racquetball & Basketball are offered to those 18 +. Youth and Familv The Community Services Department's Playschool program is for children ages one through five. Over 630 children attended classes focusing on building children's self - esteem, attention span and social development. The Teen Center is located inside Lions West Community Center and provides a place for local teens to participate in activities, workshops, and special events after school. During the summer months, close to 2,000 children ages 3 through the teen age years attended one of our camp programs, Camp Cucamonga Junior, Camp Cucamonga and our Teen Camp. The Teen Xvnl December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Recreation Activity Club (TRAC) is a year round volunteer /leadership club providing teens an opportunity to get involved in their community and make a difference. RC Family Resource Center The RC Family Resource Center, a hub for non -profit service organizations, hosts over 25 non- profit organizations providing emergency food and clothing, family crisis intervention, court recognized services, support groups, adult and youth life skill classes, parenting classes, and much more. Community Connection Services, one of those non - profit partners, provides vital services to the community with their emergency food and clothing programs, employment preparation, and housing assistance. The RC Family Resource Center also provides monthly and annual family events such as Family Fun Nights, Thanksgiving Basket food drive and the family - friendly Halloween Spooktacular event with over 1,500 attendees. These events are geared toward strengthening the family unit by creating an enjoyable experience for all family members. Park Development Projects completed as of June 30, 2015 include: • Purchase and installation of additional amenities for the Central Park Pavilion including trash receptacles, picnic tables, and lights. • Replacement of play equipment and surfacing at Spruce Park • Sidewalk improvements at Etiwanda Creek Park to accommodate ADA Projects awarded and/or started in Fiscal Year 2014/15 include: • Los Amigos Park (formerly Southwest Park) Architectural/Design Services • Central Park Trailhead Improvements Architectural Design Services • Victoria Gardens Cultural Center Courtyard Architectural /Redesign Services • Victoria Gardens Cultural Center Loading Bay Architectural/Design Services Additional Department Activities Volunteer opportunities continued to grow and expand this past year as staff continued to find new ways to utilize volunteers throughout the City. During the last year, volunteers worked at numerous events and activities. Annually over 60,000 hours of volunteer services are provided by the Department's volunteer core. Providing opportunities for citizen involvement is an important aspect of the philosophy of the City and the Department. The Rancho Cucamonga Epicenter is home to the highest attendance ranked Southern California team in the Single `A' Baseball League, the Rancho Cucamonga Quakes. The team is a California Affiliate of the Los Angeles Dodgers. Quakes' baseball is played on the Stadium field between April and September each year. On non -game days and during the off - season, the facility is available for rent. xlx December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Police Department The City of Rancho Cucamonga contracts with the San Bernardino County Sheriffs Department for general law enforcement services. During FY 2014/2015, the Police Department had 133 sworn officers, 41 professional (general) employees and more than 90 volunteers which included Reserves, Citizen Patrol, Equestrian Patrol and Explorers. In addition to basic patrol services, the Rancho Cucamonga Police Department also provides the following: School Resource Officers (4), Bicycle Enforcement Team, Multiple Enforcement Team, Solution Oriented Policing Team, Traffic Division, Detective Bureau and Retail Theft Team (Victoria Gardens). The Rancho Cucamonga Police Department is forward thinking and progressive. The Department embraces technology in an effort to support efficient and resourceful policing. This led to the development of an organizational methodology which invests in technology and simultaneously supports quality of life policing. The Rancho Cucamonga Police Department strives to provide high caliber police services to the citizen of Rancho Cucamonga. This partnership allows for an increased support from the public and the ability of the Police Department to meet the needs of the community. Automated License Plate Readers (ALPRs) ALPR uses video cameras in combination with infrared (IR) illuminators that are capable of capturing the image of the front or the rear of a vehicle that passes through its field of vision. Each ALPR vehicle is equipped with two or three camera systems and an onboard computer. The technology has the potential ability to capture up to 3,000 license plates per hour. The captured license plate characters are checked against the hotlist of known license plates in the onboard computer. If the plate in the image is found in any of the hotlists, the system alerts the operator. There are currently five fixed ALPRs camera locations located throughout the city and ten mobile ALPRs affixed to marked police cars. Drug Detection K -9 The Rancho Cucamonga Police Department acquired a 2 %2 year old Labrador named Smokey. Smokey is a certified drug detection K -9 that detects marijuana, methamphetamine, heroin and cocaine. Smokey searches cars, houses, buildings, sheds, lockers, and schools among other places. Smokey is also very social and made several public appearances including appearances at elementary schools and faith based organizations. Since Smokey deployed in March 2015, he made numerous seizures in the city that included several pounds of illegal drugs. Having a drug detection K -9, reduces search time and increases investigative efficiency. xx December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Zero Motorcycles The Department purchased four Zero FXP electric motorcycles. The Zero's are used for enforcement in the Cucamonga Canyon, Pacific Electric Trail, Etiwanda Preserve and city parks. The Zero's are effective because they are quiet and do not create the noise of a gasoline powered motorcycle. This allows deputies the ability to traverse areas and not disturb the public and also have the element of surprise for criminal activity. Upgraded Incident Command Vehicle The Incident Command Vehicle (ICV) is a four wheel drive rapid deployment communications and command platform designed to be used in the event of an emergency, critical incident, or natural disaster. The vehicle is used as a first responding unit with mid -level communications capabilities. The ICV is designed to be relieved by larger more stable command post vehicles should an incident evolve or develop into something bigger than the ICV's capabilities. The ICV was originally designed and built approximately ten years ago and was in dire need of updates. The following is a list of upgrades completed during the fiscal year: • Two new MDC's (Mobile Data Computers) replaced older nonfunctional machines • One new 800 MHz radio was added and three existing radios upgraded • New emergency lighting was added and older lighting replaced • The battery and charging system were upgraded to support more electronics. • A secure idle system and mobile Wi -Fi were added to support internet connectivity. • Two monitors and an Apple TV system were added to a refurbished command console in the back of the unit. These monitors and Apple TV allow users to connect to live news coverage of events as they unfold. They also allow for the use of additional electronic devices such as iPads, iPhones and portable computers connected through them. • A new exhaust system was designed to redirect exhaust away from the vehicle. Expansion of Solution Oriented Policing The Solution Oriented Policing (SOP) Unit was enhanced with the primary goal to investigate sex trade crimes with a strong focus on unlawful massage businesses. By June of 2015, deputies coordinated the largest massage establishment operation in the history of the Sheriff's Department. This was the first of many operations to weed out the illicit and less desirable establishments from our city. These locations have a propensity to harbor victims of the sex trade and human trafficking. Through the combined efforts of the Police, Fire, Planning, Business Licensing, Building Safety and the City Attorney's Office, twelve (12) locations were permanently closed. SOP deputies work meticulously with all city departments to eliminate problem establishments and discourage the entrance of less desirable establishments. xxl December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Fire Deuartment The Rancho Cucamonga Fire Protection District (District) is responsible for Community Risk Reduction, Emergency Response, and Emergency Management /Disaster Resiliency. District personnel are dedicated to the preservation of life and property in service to the community. The continuous goal is to deliver these services in an effective, efficient, and professional manner. The District emphasizes a risk reduction strategy to educate the community and enforce life safety regulations that are designed to protect natural resources, secure the economic vitality of the community, and improve the quality of life for its citizens. The District's emergency response platform consists of seven paramedic- staffed engine companies and two ladder companies operating out of seven fire stations. These crews are trained and equipped to handle a variety of emergency situations. They are strategically deployed throughout the City to ensure a rapid and effective response designed to quickly assess the emergency situation and initiate actions that will stop its escalation and bring it under control. In this way, Fire District members save lives, reduce the impacts of injury and illness, preserve property, and protect the environment. The Fire District also supports the Citywide Emergency Management program. This program works with public and private stakeholders to improve the community's disaster resiliency through preparedness, mitigation, response, and recovery planning. Working in conjunction with other providers such as the San Bernardino County Sheriff's Department's Rancho Cucamonga Station, the District has been a vital partner in public safety in the community since the formation of the Alta Loma Fire District in 1931. The District continues this tradition of service by constantly reviewing and refining its administrative and operational procedures and policies in order to ensure its resources are maximized in this effort. During the 2014/15 fiscal year, District staff accomplished the following to maintain and improve existing services levels in accordance with Council approved goals: • Completed the major Capital Maintenance Projects at the Jersey Station, Banyan Station, and the Fire Maintenance Facility • Replaced a set of Heavy Rescue Air Lifting Bags • The District received sixty-one (61) Self- Contained Breathing Apparatus (SCBAs) in conjunction with the City of Ontario Fire Department regional grant award from the 2013 Assistance to Firefighter's Grant (AFG) from the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security (DHS). • Continued waiving Fire Inspection Fees • Issued a contract for a construction management firm to manage the Fire All -Risk Training Center construction project • Completed the bid process and ordered a new replacement fire engine Library Services The Library Services Department was once again very busy in Fiscal Year 2014/15. In the past fiscal year, the Department checked out almost 1.1 million books, DVDs, CDs, eBooks, and magazines, and issued over 12,000 new library cards. Over 80,000 people used a library computer and 38,000 youngsters attended a library program. Currently, over 200,000 borrowers own a Rancho Cucamonga library card and enjoy a collection of over 300,000 titles, xxii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga 310 magazine and newspaper subscriptions, and free access to over 70 PCs through "The Three Amazing Libraries" of Rancho Cucamonga. Other Library highlights include: Children's and Teen Services • More than 38,000 youngsters came to our libraries to enjoy the popular story time programs. With twenty -two times each week at our two locations, the preschool, toddler, school -aged and teen programs offer something for children of every age. • The Summer Reading Program had over 5,000 children and teens, helping them to maintain their reading skills during the summer months. • The popular "Kidsmobile" bookmobile provides service to elementary schools. Our distinctly - designed bookmobile visits children at their school sites. The "Kidsmobile" checked out almost 60,000 items to children during this past fiscal year. • Thanks to grants received from the Southern California Gas Company, the Library was able to present a series of STEM (Science, Technology, Engineering and Mathematics) programs for children ages 6 -12. • Children's Services staff also participated in a Statewide early learning initiative with Touchpoints and the Brazelton Institute where five of our staff are going through an intensive training program and one will end up as a trainer. • One of the Library storytimes was also featured on the Channel 7, ABC News during National Library Week. Senior Services The Library's "Housecalls" outreach program delivers library materials via volunteers to community members who cannot come to the library. This service reaches more than 60 Rancho Cucamonga residents, and we deliver library materials ranging from books to DVDs to recorded books on CD. Outreach Services • The Library had lots of outreach visits in 2014/15, from school events to festivals to farmer's market visits to health fairs to National Night Out to neighborhood events. Probably the most significant addition in the last year was outreach to promote the Summer Reading Program which included about 15 visits to local schools, talking to about 15,000 children. Information and Virtual Library Services • Between the Adult and Children's Information Service desk and our Virtual Library, over 170,000 information questions were answered during the past fiscal year. • Over 80,000 library customers used our free, public access computers or Wi -Fi network to search for jobs, send email, create resumes, type up school reports or just surf the Internet, while over 1,600 children, teens and adults took advantage of free, hands -on computer classes. • Both the Biane and Archibald Libraries are certified U.S. Department of State Passport Acceptance Agencies, which add an addition revenue stream for the Library seven days a week. This year was a record year for passport services. xxiii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga • The Library was contracted by the California State Library to carry out the "Staff Innovation Fund" to libraries across the State of California. This grant created another new revenue stream for the Library as well as offering a new, innovative training program to other public libraries in California. Literacy Services • Over fifty active literacy tutors and learner pairs call the Library their home to improve literacy skills. The continuation of this program is possible due to on -going support from the State Library, Community Development Block Grant funds, corporate and private donations. • The "Back to Basics" Children's Literacy Program served another class of 150 youngsters, improving the reading level of each child and promoting reading and literacy as a pathway to success. Volunteer Services Between the Friends of the Library and the regular volunteers, 13,000 hours of volunteer time were donated in this fiscal year. The Friends of the Library volunteers accounted for 8,000 hours of volunteer time for sorting, staffing, and managing the Friends Bookstore at both libraries. The Friends Bookstores raised over $130,000 for the Library in Fiscal Year 2014/15. Library Foundation Highlights • In the past year, the Library Foundation donated over $50,000 towards various library programs, including the well - attended Cultural Arts Nights, Summer Reading Club, staff development, and the Play and Learn IslandsTM Goals for Next Year • The Library will move forward with construction for the second floor of the Biane Library, resulting in a large programming space, art room, classroom, early learning room, and STEM lab. In addition, the Library will continue to aggressively pursue grant funds from numerous agencies, in particular to continue work on the development of the second floor of the Biane Library. • The Library is working with the California State Library on further expanding the "Staff Innovation Fund" program to make it available to more libraries on a statewide basis. There are also several smaller grants that are being worked on, including the Big Read and grants from Southern California Gas and Southern California Edison. City Management As the administrative head of city government, the City Manager is appointed by the City Council to enforce municipal laws, direct daily operations of the City, make recommendations to the Council, prepare and monitor the municipal budget, appoint and supervise all City department heads and employees, and supervise the operation of all City departments. The City Manager is responsible for implementing policies adopted by the City Council; preparing and submitting the annual budget and administering the day -to -day operations of the City. xxiv December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga As part of these responsibilities, the City Manager's Office oversees various citywide and interdepartmental projects and efforts. These include: Healthy RC Under the leadership of the City Manager's Office, Rancho Cucamonga has developed an innovative Healthy RC program. This program is unique in its holistic approach to encouraging residents, businesses, and our own organization to adopt healthy, active, and sustainable lifestyles and practices. This approach brings together both new and existing efforts of each City Department with the goal of improving the quality of life in our community. Healthy RC highlights include: • Rancho Cucamonga was named the Most Innovative City by the National League of Cities for its innovative policies, programs, strategies, and impact on reducing childhood obesity. Rancho Cucamonga and Healthy RC were also recognized for achieving gold medals in all five Let's Move! Cities, Towns and Counties (LMCTC) goal areas. This is the highest distinction a community can receive from the LMCTC initiative. Out of 457 participating cities, only 23 cities (including Rancho Cucamonga) earned five gold medals. • The City of Rancho Cucamonga was awarded its first ever Helen Putnam Award for Excellence by the League of California Cities for its Healthy RC Youth Leaders program in the category - Ruth Vreeland Award for Engaging Youth in City Government. This category recognizes recipients for youth programs that promote community collaboration and civic engagement and engage youth in the public decision - making process. The Healthy RC Youth Leaders program demonstrates how local youth and city government can work collaboratively to improve health and wellness. • The California Association of Public Information Officers (CAPIO) awarded Healthy RC the 2015 Excellence in Communications Award of Merit for the graphics design of the Join the Healthy RC Picture brochure. • Rancho Cucamonga and Healthy RC is one of 20 communities nationwide to receive a Roadmaps to Health Action Award. The award program, a collaboration between the Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute, recognizes communities across the nation that have engaged their community and demonstrated efforts to improve the health and wellness of everyone. • For the fifth consecutive year, Rancho Cucamonga was awarded a Playful City USA designation by KABOOM! for its continued commitment to creating opportunities for play. Rancho Cucamonga is one of 241 cities across the county and one of 28 California cities named 2015 Playful City USA honorees. Green Sustainability The City Manager's Office has taken the lead in the citywide green sustainability efforts and implemented the Healthy Earth program, which strives towards a greener, cleaner Rancho Cucamonga. Staff has identified efforts to minimize the City's operations and the community's environmental impacts to reduce greenhouse gas emissions in the areas of transportation, land use, open space, green building, energy efficiency, economic development, public health, waste reduction, water and wastewater systems, and green purchasing. The focus in FY 2014/15 was to xxv December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga strengthen the environmentally sustainable initiatives in City operations, local partnerships, and encourage Rancho Cucamonga residents and businesses to be more environmentally conscious. Some of the accomplishments under this initiative include: • Transitioned the City's electric vehicle charging stations to a paid system (June 2015) • Completed a Request for Proposal for "Solar Photovoltaic Systems at Various City Facilities" (April 2015) • Added two new businesses to the Green Business Recognition Program (April 2015) • Received recognition as one of the top three cities in the statewide CoolCalifornia Challenge to engage residents in energy efficiency and a Pacific Electric Trail rest stop was constructed to memorialize this accomplishment (October 2014) • Updated the City's Green Purchasing Ordinance and held a citywide staff training session (April 2015) Community Information Program The City Manager's Office oversees the citywide Community Information Program. The mission of the Community Information Program is to provide accurate, open and comprehensive information about the City of Rancho Cucamonga and its programs, policies, services, and future plans in a timely manner to those who live, work and play in the city. The Communications Division supports this mission and promotes the city's brand with the use of a variety of information outreach technology and communication tools such as: publication of the Rancho Reporter; news releases; media relations, RCTV -3, the City's Government Access Channel; e- newsletters, brochures, flyers, city -wide initiative participation; and provides messaging, media relations and public relations counsel to City departments. Legislative Affairs Program The City Manager's Office coordinates a very active legislative program that focuses on protecting the interests of our community and identifies resources available to enhance City services and programs. Legislative efforts include researching and monitoring federal and state bills, preparing position papers and letters in response to proposed legislation and working with legislative representatives and their staff to promote the interests of the community at the state and federal level. During the 2015 Legislative Session, the City tracked 31 state and federal bills and sent several letters to state and federal legislators and the Governor advocating our position on certain legislation and issues. Additionally, as the City Council actively participates in regional agencies and boards, the City Manager's Office provides assistance and support to assist the Council in these positions. The inter- governmental agencies the City participates in include San Bernardino Associated Governments (SANBAG), Omnitrans, Southern California Associated Governments (SLAG), and Metrolink. City officials are also actively involved in, and have taken on several leadership positions with, the League of California Cities, a statewide association that advocates for the interest of cities. The City Manager's Office regularly coordinates regional meetings for the League of California Cities Inland Empire Division and provides topics and speakers that are of interest to local government officials. xxvi December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Ombudsman The City Manager's Office strives to ensure that the City provides the highest level of customer service. The City Manager's Office is available to assist residents with any city- related issue. The staff in the City Manager's Office helps residents in person, over the phone, and via email through the City's General Information email account. Cable Television Franchise Administration The City Manager's Office monitors the State - issued franchise agreements, with an emphasis on citizen concerns. Charter Communications, Time Warner Cable, and Verizon FIOS TV provide cable TV service in the City of Rancho Cucamonga under state franchise agreements from the California Public Utilities Commission (CPUC). The City Manager's Office works with the cable companies to resolve customer service issues and ensure the very best possible service to Rancho Cucamonga citizens.. Performance Measurement The City Manager's Office oversees the distribution of data related to the activities of city departments. In previous years, this data was published in a biannual Department Statistics Report, which provided the City Council and the public with information about key performance measures such as the average response time for Police calls, the number of capital improvement projects completed by Engineering Services, and the number of potholes repaired by the Public Works Department, to name a few. In 2014, the City Manager's Office began the process of transitioning the publication of this data from a hardcopy report format to an online dashboard with interactive charts and maps that provide more timely data updates and tracks the city's progression towards meeting key performance goals. The first phase of this project was completed in April 2015 with the release of the Public Safety Performance Dashboard, which highlights the activities of the City's Police Department and Fire Protection District. Staff is currently working on an expansion of the dashboard to include the release of additional city data in categories such as Community Development, Health and Sustainability, Governance and Finance, and Community and Cultural Services. The expanded dashboard is anticipated to go live in summer 2016 and will provide the public with a comprehensive view of the activities taking place throughout the city. City Clerk's Office The City Clerk's Office is responsible for preparing agendas and minutes for all City Council, Fire Protection District, Successor Agency, and Public Financing Authority meetings as well as agendas for the Oversight Board and various City Council Subcommittee meetings. The office is also responsible for the processing and maintaining of all bonds and their releases, contracts /agreements, recorded documents, resolutions, and ordinances. The City Clerk's office also prepares notices of public hearing for the newspaper, receives and opens bids for city projects, and maintains the Municipal Code book. xxvii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga In 2014, the office coordinated the November 4, 2014 municipal election. From July to November, the office assisted candidates in filing papers stating their intention to run for office, the filing of campaign statements and economic interest statements, and worked closely with the San Bernardino County Registrar of Voters Office. In addition, the City Clerk's office and the City Attorney's office led a multi - Departmental task force in reviewing and updating the Rancho Cucamonga Municipal Code. The Records Management Division maintains a comprehensive records management program. The Division has the ultimate responsibility of maintaining and retrieving all city documents and information requested by the public as well as City staff. In addition, the Records Management Division accepts appeals and coordinates the hearing schedule as well as receiving subpoenas and claims for the City of Rancho Cucamonga. Animal Care and Services As an open admission municipal Animal Center, the Animal Care and Services Department (AC &SD) provides care, shelter, and adoption services for more than 5,000 homeless, abandoned, and abused animals each year. The Department, which began operating in May 2006, relies on the support of the community to work towards achieving their mission of building a community in which every adoptable pet finds home. The Animal Care and Services Department is also committed to protecting the health, safety and welfare of the community. The Field Services Department responds to requests for service such as impounding stray animals, pick up of deceased animals, rescuing animals in distress, enforcing animal laws and investigating animal neglect cases and nuisance animals complaints. The Department provides emergency services for injured or sick stray pets, vicious /aggressive animals, and police and fire assistance on a 24/7 basis. Community involvement is an important component for the Animal Care and Services Department. This includes the development of a strong volunteer program, a foster care program, working with rescue groups and other Centers, attending community events, and adoption promotions. Volunteers The Department offers a wide variety of volunteer opportunities in areas such as dog walking, cat socialization, pet grooming, and pet photography, as well as traditional opportunities such as computer services, clerical, and cleaning. Additionally, the Animal Center has an active volunteer fundraising committee that is committed to community engagement and collecting donations. Increasing Adoptions In Fiscal Year 2014/15, the Animal Center opened its first 24 hour a day neonatal kitten nursery. The objective of the nursery is to improve the success rate of over 700 kittens between the ages of 1 day old to 8 weeks old that are received by the Center annually and require around clock specialized care. Once the kittens reach 8 weeks of age, they can be adopted into new homes. The nursery is supervised by staff, but primarily volunteer driven. Also in Fiscal Year 2014/15, the Center expanded its programs for feral cats to include a community cat program where xxviii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga all healthy feral cats received by the Center are sterilized, vaccinated, and microchipped and returned to the colonies they lived in. Both these programs improved the adoption placement rates of cats received by the Center. The Department also used social media, photography, videos and adoption promotions such as Home for the Holidays, Me and My Shadow, Name Your Price Adoption Event and $5 Feline Fridays to help our furry friends find new homes. Medical Services The Center's veterinarian continued to expand the types of surgeries able to be performed (including orthopedic surgeries) and the types of critically injured or sick patients the Center is able to care for. The Department's surgical program averages about 55 to 60 spay and neuters a week plus restoration and corrective surgeries. To help with the work load without increasing costs, the Center's veterinarian maintains partnerships with the following educational institutions to provide students to help in the surgical and medical areas at no cost to the Department: • Western University — 4t' year veterinary students • Fontana Unified School District — ROP Students • Platt College — RVT students Community Resources The Department sponsored several fundraising events this year and continued attempts to reach out to the community. They hosted their Furry Friends Flea Market, Bark in the Ballpark, Open House and Furry Friends Festival, and Pet Walk a Thon. Funds raised will go directly back into more community programs in the upcoming fiscal year. Program Growth The Department continues to expand community programs that will contribute to placement of animals in new homes and reducing the number of animals that enter the Center annually. Using funds raised through fundraising events, the Department hosted a free microchip and vaccination clinic and two Operation Cat Nip events during the year. Operation Cat Nip offers a free spay or neuter and vaccines for the outdoor /free roaming cats in Rancho Cucamonga. Another program which is important to the placement of adoptable pets is the Department's rescue program. This program is a partnership with private, nonprofit groups who take pets from the Center and place them into suitable homes. The Department continues to expand its rescue and adoption partnerships with local and out of state Animal Shelters. For example, to help address the problem of high number of small dogs that enter the Center, the Department continued its partnership with an Animal Shelter in Maine that does not receive many small dogs and was able to send over 40 of the Center's small dogs to them for adoption. xxlx December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga Administrative Services Grou The Departments and Divisions of the Administrative Services Group are unique in comparison to other City departments. While line departments typically provide services only to the public, the Administrative Services Group provides services and support primarily to internal staff (including the City Council, the City Manager, the various City departments and employees) with some service areas crossing over into the public arena. The group's major service areas are: Administration, Finance, Treasury Management, Human Resources, Risk Management, Purchasing, Business Licenses, Special District Administration, Geographical Information Systems, and Information Services. The Administrative Services Group continued making progress on projects that were started during the previous fiscal year as well as some new projects initiated during the 2014/15 fiscal year. A summary of each of these projects by division follows. Administration Division One of the responsibilities of the Administration Division is to facilitate and coordinate intra- and inter - departmental programs. During this fiscal year, the Division facilitated numerous training programs including the Leadership Academy and the Supervisory Training Program. The Division has continued the City's efforts toward the long -term fiscal sustainability of the City's landscape maintenance and street lighting districts, working with the GIS /Special Districts Division and Public Works Services Department. Finance Department The Finance Department of the Administrative Services Group provides for the administration of financial activities such as payroll, accounts payable, accounts receivable, audits, preparation and monitoring of the budget, revenue recording and tracking, preparation of financial statements, and the establishment and maintenance of a fixed asset inventory. Finance is also responsible for business licensing and treasury management. The Finance Department applied for and received its 27th consecutive Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting (Certificate of Achievement). The Certificate of Achievement is an award designed to recognize and encourage excellence in financial reporting by state and local governments. It is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. The Department also applied for and received its 3rd consecutive GFOA Distinguished Budget Award. In early 2015, the Department completed the League of California Cities new California Municipal Financial Health Diagnostic. The Diagnostic indicated that the City's General Fund is in a very healthy condition. See additional discussion of the results of the Diagnostic in Management's Discussion and Analysis within the Financial Section of this document. The Finance Department's Business License Division ensures compliance with City codes as they relate to business licenses, as well as transient occupancy and admission taxes. During Fiscal Year xxx December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga 2014/15 staff processed approximately 10,083 business license applications (7,810 renewals and 2,273 new filings), inspected 553 businesses, and collected revenues totaling $2,401,773. The Treasury Management Division of the Finance Department, in accordance with the "Prudent Person Rule," invests and monitors all idle funds to maximize and safeguard taxpayer dollars. The Division continually monitors the various services provided by its financial institution to ensure that the City is receiving the most comprehensive services for the most economical price. During FY 2014/15, the Division submitted the City's Investment Policy to the California Municipal Treasurers Association (CMTA) for certification. In November 2014, the Finance Department was notified that the City of Rancho Cucamonga's Investment Policy earned the CMTA Investment Policy Certification. The CMTA Investment Policy Certification certifies that the City's Policy complies with the current State statutes governing the investment practices of local government entities located within the State of California. Human Resources Department The Human Resources Department is responsible for managing a broad range of employment related services including employee recruitment, selection, classification, compensation, employee development and labor relations. In addition, the department provides risk management services including worker's compensation and general liability programs, employee wellness and safety. Key accomplishments this year include the following: • Oversight of reporting and compliance with the Affordable Health Care Act. • Worked to improve the efficiency and effectiveness of the Department's practices and procedures in order to provide better service to internal and external customers. The Risk Management Division of the Human Resources Department is responsible for ensuring employee safety, the prompt and fair delivery of workers compensation benefits, risk assessment and cost effective risk transfer when appropriate, litigation management, and the fair and fiscally responsible analysis of third -party claims. Geographic Information Systems /Special Districts Division The City of Rancho Cucamonga shines brightly through its innovative use of GIS technology and applications. Rancho Cucamonga's dedicated enterprise GIS (REGIS) serves as a better way to maintain, manage, and share geographic information throughout City departments. GIS is an integral part of the daily operations and functions in the City. The Division is able to analyze, query, and display data to provide timely information needed to make better decisions. REGIS handles a large number of map and data requests from all City departments as well as from local residents, businesses, schools, and other agencies. REGIS uses GIS and cutting edge technologies to develop solutions that connect the City and the community, engage citizens, and improve business processes in order to deliver efficient and effective services while being responsive to the needs of our customers. The Division also manages all the City's special assessment districts and is charged with responsibility for the City's telecommunication needs. Division highlights this year include the following: xxxl December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga • In July 2014, REGIS was awarded the prestigious President's Award in GIS, the highest honor awarded by Esri in GIS, for REGIS' vision, leadership, hard work, and innovative use of GIS technology to serve its citizens. • Continued to develop the REGIS Connect Program to provide services to our city and agency partners that are in need of our expertise and generate revenue to offset GIS division costs. Services provided include: GIS Needs Assessment, project management, data development and data collection, application development, training and support services. • With regard to Special Districts Administration, the Division managed the refinancing of a bond issue in Community Facilities District 2000 -03 in order to take advantage of interest rate savings without extending out the life of the bonds. The transaction was completed in July 2014. These savings will go back to the property owners in these districts, lowering their assessments beginning with the December 2015 tax bill payments. • The Special Districts Division placed over $27.3 million in special taxes and assessments on the 2015/16 Tax Roll for the City's 35 special districts. • Researched options available for upgrading the City's phone system. Information Services Division The Information Services Division of the Administrative Services Group provides research and development in client server computer and personal computer applications. The Information Services Division continues to strive to be on the cutting edge of technology, thus increasing the productivity and service levels to the City users and patrons. The advances described are designed to progressively build upon the City's technology base to improve, expand and respond to the demands of the public for vital services in police, fire, safe roads, youth and adult recreation, tax and financial transactions, community and home development and many more. In FY 2014/15, Information Services continued the replacement of aged equipment and upgraded applications to maintain reliable and progressive services for our staff and community. The Division also worked with staff from the Community Development departments to add electronic document submittal capability to the Accelerate land management software, making the entire permit process an online activity rather than requiring a trip to City Hall. Purchasine Division The Purchasing Division of the Administrative Services Group is authorized to procure services or goods for the best value at the best price, from the most responsive vendor. It acts as the City's centralized procurement agent and authorizes all City purchases by ordinance requirements. It is also charged with the disposition of surplus or obsolete property. Division highlights this year include the following: In May of 2015, the Purchasing Division submitted an application for the 2015 Achievement of Excellence in Procurement (AEP) award. Each year the criteria changes in order to keep up with innovations and best practices in public procurement. The Purchasing Division is one of only forty -nine (49) agencies in CA and one of only sixty -five (65) cities in the United States and Canada to receive the award in 2015. This is the seventh consecutive year that the Purchasing Division has been the recipient of the AEP award. xxxii December 3, 2015 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga • Efficiently disposed of surplus City assets through online bidding applications to generate $43,642 in additional revenue for the City. • In July of 1.015 began receiving Bid and Proposal responses electronically. This process eliminates the requirement for large quantities of responses to be submitted on paper and is an environmentally friendly process. 111. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Rancho Cucamonga for its comprehensive annual financial report (CAER) for the fiscal year ended June 30, 2014. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Rancho Cucamonga has received a Certificate of Achievement for the last twenty-seven consecutive years. We believe that our current comprehensive annual report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation ofthis report could not have been accomplished without the efficient and dedicated service of the entire staff of the Finance Department and the administrative staff of the Administrative Services Department. We appreciate and would like to commend all the City departments who assisted and contributed material to this document. We also recognize and would like to acknowledge the Mayor and members of the City Council for their interest, dedication, and constant support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted. John R. Gillison Namara L. Lavn City Manager Finance Director xxxiii CITY OF RANCHO CUCAMONGA CITY OFFICIALS JUNE 30, 2015 City Council Name Term Expires L. Dennis Michael Mayor 2018 Sam Spagnolo Mayor Pro -Tem 2016 William J. Alexander Council Member 2018 Lynne Kennedy Council Member 2016 Diane Williams Council Member 2018 Administration and Department Heads City Manager John R. Gillison Assistant City Manager Linda Daniels Deputy City Manager /Administrative Services Lori Sassoon Deputy City Manager /Economic and Community Development Jeff Bloom City Attorney James L. Markman Treasurer (term expires 2016) James Frost City Clerk (term expires 2016) Janice C. Reynolds Assistant City Clerk/Records Manager Linda Troyan Animal Services Director Veronica Fincher Building and Safety Services Director Trang Huynh Community Services Director Nettie Nielsen Engineering Services Director /City Engineer Mark Steuer Finance Director Tamara L. Layne Fire Chief Mike Costello Human Resources Director Robert Neiuber Library Director Michelle Perera Police Chief Danielle Boldt Public Works Services Director Bill Wittkopf xxxiv CITY OF RANCHO CUCAMONGA ORGANIZATION CHART Citizens of Rancho Cucamonga City Clerk I I City Council City City Manager City Treasurer Administrative Animal Care Police Economic and Services and Services Department Community iin/GIS/IS/Pureh/Spee Dist Development Community Fire Services District Finance Library Human Services Resources Building and I I Engineering Planning I I I I Public Works Safetv Services Services xxxv M 0 1� Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rancho Cucamonga California For its Comprehensive Annual Financial Deport for the Fiscal Year Ended June 30, 2014 Executive Director /CEO xxxvi City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2015 Financial Section THIS PAGE INTENTIONALLY LEFT BLANK LSE �:: CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California Report on the Financial Statements • David E. Hale, CPA, CFP • Donald G. Slater, CPA • Richard K. Kikuchi, CPA • Susan F. Matz, CPA • Bryan S. Gruber, CPA • Deborah A. Harper, CPA • Gary A. Cates, CPA • Michael D. Mangold, CPA • David S. Myers, CPA We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of Rancho Cucamonga, California, (the City) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Lance, Soil & Lunghard, LLP 203 North Brea Boulevard Suite 203. Brea, CA 92821 TEL 714.672.0022 Fax 714.672.0331 Orange County Temecula Valley Silicon Valley www.lslcpas.com LSE�:: CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Rancho Cucamonga, California, as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note 1 to the financial statements, in 2015 the City adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions — An Amendment of GASB Statement No. 27 and GASB Statement No. 71. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the budgetary comparison information for the General Fund and major special revenue funds, the schedule of changes in the net pension liability and related ratios for the agent multiple - employer plans, the schedule of plan contributions for the agent multiple employer plans, the schedule of proportionate share of the net pension liability for the cost sharing multiple employer plans and the schedule of plan contributions for the cost sharing multiple employer plans as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. 2 LSE�:: CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 24, 2015 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Brea California December 7, 2015 3 THIS PAGE INTENTIONALLY LEFT BLANK MANAGEMENT'S DISCUSSION & ANALYSIS RANCHO CUCAMONGA As management of the City of Rancho Cucamonga ( "City "), we provide for the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2015. Since the Management's Discussion and Analysis (MD &A) is designed to focus on the current year's activities, resulting changes, and currently known facts, we encourage the readers to consider the information presented here in conjunction with additional information furnished in the Letter of Transmittal and the accompanying basic financial statements. Comparative data on the government -wide financial statements are only presented in the MD &A. Financial Highlights • The assets and deferred outflows of resources of the City of Rancho Cucamonga exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $1,174,845,064 (net position). • Beginning net position has been restated to decrease by $65,062,349 to implement the provisions of Governmental Accounting Standards Board Statement No. 68 (GASB 68). The implementation of GASB 68 resulted in a restated beginning net position of $1,146,583,163. • The government's total net position increased by $28,261,901 after its beginning net position restatement. • As for the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $422,048,710 with a net increase of $21,057,449 in fund balance. • During the current fiscal year, the Successor Agency transferred land to the City in the amount of $4,905,912 and bond proceeds to the Housing Successor Agency in the amount of $4,320,145. This resulted in an extraordinary gain for the City and an extraordinary loss for the Successor Agency in the total amount of $9,226,057. • Subsequent to year end, the City received an adverse determination from the State Department of Finance regarding the reimbursement of advances from the City to the Successor Agency. Management determined it would be prudent to write off $9,521,226 of the advance from the City at June 30, 2015. This resulted in an extraordinary loss for the City and an extraordinary gain for the Successor Agency in the amount of $9,521,226. Overview of the Financial Statements The City is required to present its financial statements in accordance with Generally Accepted Accounting Principles (GAAP), which includes complying with the Governmental Accounting Standards Board (GASB) pronouncements. Government -wide Financial Statements Government -wide financial statements provide readers with a broad overview of the City's finances in a manner similar to that of a private- sector business. These statements include the City and its component units. As stated in Note 1.a. of the notes to the financial statements, the inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga, as either blended or separately shown, is based on the provisions of GASB Statement No. 14, The Financial Reporting Entity, and amended with GASB Statement No. 61, The Financial Reporting Entity. Omnibus -An Amendment of GASB Statements No. 14 and No. 34. Although legally separate, component units function for all practical purposes as departments of the City and, therefore, have been blended as part of the primary government. The City's component units are: the Rancho Cucamonga Public Improvement Corporation, the Rancho Cucamonga Fire Protection District, the Rancho Cucamonga Library, and the Rancho Cucamonga Public Financing Authority. 5 These statements are designed to provide information about the activities of the City as a whole and present a longer -term view of the City's finances. This longer -term view is intended to illustrate the City's ability to continue functioning as a viable entity well beyond the next fiscal year's operations. The statements are prepared using the accrual basis of accounting. The accrual basis of accounting considers money available when earned and considers money spent when a liability is incurred. As such, this basis of accounting focuses on measuring economic resources that are available to the City regardless of the timing of the availability of those resources. For example, grant revenue may have been earned as of fiscal year end but may not be received until several months subsequent to fiscal year end. Under the accrual basis of accounting, this revenue would be recognized as a resource available to the City as of fiscal year end, even though the actual cash is not received for several months. An example related to expenditures would be the City's accrued interest liability. This liability is recognized as a usage of the City's resources as of fiscal year end, even though the actual cash payment will occur over an extended period of time. The accrual basis of accounting is similar to that used by most private sector companies. Accordingly, all of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. Additionally, these statements reflect the capitalization and depreciation of infrastructure and other capital assets (e.g., buildings, vehicles, furniture and fixtures, etc.) as well as the recognition of various long -term liabilities (e.g., capital leases, claims and judgments payable, accrued employee benefits, etc.). The government -wide financial statements distinguish functions of the City that are principally supported by taxes, intergovernmental, and use of money and property revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety — police, public safety — fire protection, public safety — animal center, community development, community services, and engineering and public works. The City's business -type enterprise activities include the Sports Complex, Rancho Cucamonga Municipal Utility (RCMU) operations, and Rancho Cucamonga Enterprise Geographic Information Systems (REGIS) Connect. The statement of net position presents information on all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the excess of total assets and deferred outflows of resources over total liabilities and deferred inflows of resources reported as net position. This statement includes changes in capitalized and depreciated capital assets. The purpose behind the statement of net position is that, over time, increases or decreases in the net position are one potential useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows (both positive and negative) in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both the governmental activities and the business -type activities are presented on the accrual basis of accounting. Proprietary funds, discussed below, also follow the accrual basis of accounting. The government -wide financial statements can be found on pages 23 through 25 of this report. 0 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. The fund financial statements provide detailed information about the most significant funds and other funds. Some funds are required by state law and by bond covenants. In addition, in order to meet legal responsibilities for using certain taxes, grants, and other resources, prudent fiscal management requires the establishment of other funds to help control and manage money. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. By contrast to the government -wide financial statements, the governmental fund financial statements, a part of the Fund Financial Statements, use the modified accrual basis of accounting which considers money available when it is collectible within the current period or soon enough thereafter (60 days after the end of the current fiscal period except for sales tax revenues which is 90 days) to pay liabilities of the current period. Expenses are recorded when a liability is incurred. Debt service, claims and judgments, and accrued employee leave benefits are not recorded as liabilities, they are expensed at the time a payment is due. Note 1.c. of the Notes to the Financial Statements more fully describes each basis of accounting. Governmental funds. Most of the City's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year -end that are available for spending. The governmental fund financial statements provide a detailed short -term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. The differences between the results in the governmental fund financial statements and those in the government -wide financial statements are explained in a reconciliation following each governmental fund financial statement (see pages 31 and 35 of this report). The City maintains 65 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Citywide Infrastructure Improvement Special Revenue Fund, the Housing Successor Agency Special Revenue Fund, and the Fire District Special Revenue Fund, all of which are considered major funds. Major fund determination is based on guidelines pursuant to Statement No. 34 of the Governmental Accounting Standards Board (GASB 34). Data for the other 61 governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial statements can be found on pages 26 through 33 of this report. Individual fund data for each of the non -major governmental funds is provided in the form of combining statements and can be found on pages 122 through 156 in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided to demonstrate compliance with this budget. This comparison can be found on page 104 of this report. Proprietary funds. When the City charges its customers fees to cover the cost of the services it provides, these services are generally reported in proprietary funds. The City maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. "Enterprise" refers to the fund type while "business- type" refers to the activity type. The City uses enterprise funds to account for its Sports Complex, RCMU, and REGIS Connect operations. Internal service funds, by contrast, are an accounting mechanism used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for vehicle /equipment replacement and computer equipment/technology replacement. Because these services predominantly involve governmental rather than business -type activities, this fund type has been included within governmental activities in the government -wide financial statements. Internal service funds are presented as proprietary funds because both enterprise and internal service funds follow the accrual basis of accounting. 7 In the fund financial statements section, proprietary funds provide similar information to that contained in the business -type activities in the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Sports Complex, RCMU, and REGIS Connect operations, all of which are considered to be major funds of the City. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements and can be found on pages 206 through 208 in this report. The basic proprietary fund financial statements can be found on pages 36 through 38 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held in a trustee or agency capacity for others and, therefore, cannot be used to support the government's own programs. Activities reported in this category include special deposits, assessment districts, and the Successor Agency of the Former Redevelopment Agency. As of February 1, 2012, the City elected to serve as the Successor Agency of its former Redevelopment Agency (Successor Agency) which was dissolved by state law (see Note 14 to the financial statements). The Successor Agency activity is accounted for in a private purpose trust fund. In these cases, the City has a fiduciary responsibility and is acting as a trustee. The other activities reported in this category are accounted for in an agency fund. An agency fund is used to report resources held by the City in a purely custodial capacity. Fiduciary funds are not reflected in the government -wide financial statements because the resources of these funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City's fiduciary activities are reported in a separate Statement of Fiduciary Net Position on page 39 of this report. Individual fund data for each agency funds is provided in the form of combining statements found on pages 212 through 224 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements begin on page 41 of this report. Government -wide Financial Analysis Our analysis focuses on the City's net position (Table 1) and the changes in net position (Table 2) as a result of the City's activities. Comparative total data for the prior year has been presented. An analysis of the significant increases /decreases from the prior year is provided after each table. 0 Net position: TABLE 1 Net investment in NET POSITION capital assets 723,399 (IN THOUSANDS) 25,869 25,457 749,268 743,996 Restricted 294,289 JUNE 30, 2015 719 858 295,008 293,226 Unrestricted Governmental 164,042 Business -Type 10,381 130,569 174,423 Activities Activities 1,174,949 Total 36,696 1,174,845 2015 2014 2015 2014 2015 2014 Current and other assets $ 495,169 $ 482,983 $ 14,061 $ 12,473 $ 509,230 $ 495,456 Net pension asset 5,114 - 225 5,339 - Capital assets, net 726,527 720,623 25,870 25,457 752,397 746,080 Total assets 1,226,810 1,203,606 40,156 37,930 1,266,966 1,241,536 Deferred outflows related to pension 6,871 - 175 - 7,046 - Total deferred outlow 6,871 - 175 - 7,046 - Current and other liabilities 12,097 10,982 1,303 1,234 13,400 12,216 Long -term net pension liabilities 49,702 - 1,135 50,837 - Long -term obligations outstanding 16,261 17,675 - - 16,261 17,675 Total liabilities 78,060 28,657 2,438 1,234 80,498 29,891 Deferred inflows related to pension 17,529 - 430 - 17,959 - Total deferred inflow 17,529 - 430 - 17,959 - Net position: Net investment in capital assets 723,399 718,539 25,869 25,457 749,268 743,996 Restricted 294,289 292,368 719 858 295,008 293,226 Unrestricted 119,694 164,042 10,875 10,381 130,569 174,423 Net position before restatement 1,137,382 1,174,949 37,463 36,696 1,174,845 1,211,645 Restatement of net position - (63,846) - (1,216) - (65,062) Net position after restatement $ 1,137,382 $ 1,111,103 $ 37,463 $ 35,480 $ 1,174,845 $ 1,146,583 Net position, the difference between a government's assets and deferred outflows and its liabilities and deferred inflows, may serve over time as one potential useful indicator of a government's financial position. The government -wide statement of net position for the City's governmental and business -type activities indicates that as of June 30, 2015, total assets and deferred outflows of resources (of which 59% represents net capital assets of the City, including infrastructure) exceed total liabilities and deferred inflows of resources by $1,174,845,064. D The following chart displays the proportionate sections of the City's net position. NET POSITION June 30, 2015 $1,174,845,064 Net investment in capital assets 63.78% Unrestricted 11.11% Restricted for Public benefit - Municipal Utility Restricted for--,----' or Restricted for Restricted for 0.06% Capital Community Restricted for Fire 3 71 %works 3. projects services 71 /o protection 2.90% 0,83% 4.00% Restricted for Community development projects 13.51% Restricted for Public safety 0.10% The largest portion of the City's net position represents the City's net investment in capital assets in the amount of $749,268,752 ($723,399,215 for governmental activities and $25,869,537 for business -type activities), or 64% of total net position. The City uses these capital assets to help provide essential services to the citizens; consequently, these assets are not available for future spending. The City's restricted net position amounts to $295,007,655 ($294,289,084 for governmental activities and $718,571 for business -type activities), or 25% of total net position, and is dedicated to specific purposes such as community development projects, public safety, fire protection, public works, community services, capital projects, and municipal utility for public benefit. The City's unrestricted net position is $130,568,657 ($119,693,433 for governmental activities and $10,875,224 for business -type activities) or 11 % of total net position. The unrestricted net position may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the fiscal year, the City is able to report positive balances in all categories of net position for the government. Changes in Net Position During fiscal year 2014 -2015, total net position decreased by $36,800,448 (net decrease in governmental activities of $37,566,981 and net increase in business -type activities of $766,533), or 3% from $1,211,645,512 in fiscal year 2013 -2014 before restatement. The net changes are due to the restatement of the prior year's net position to reflect the effects of the implementation of GASB 68 which resulted to a decrease in net position in the amount of $65,062,349 combined with the current year's positive net of revenues and expenses in the amount of $28,261,901. The details are illustrated in Table 2, Statement of Activities, and are explained later in this report. 10 The most significant change in the primary government's net position was a result of the implementation of a new accounting change (GASB 68). The City of Rancho Cucamonga implemented GASB 68 – Accounting and Financial Reporting for Pensions —an Amendment of GASB Statement No. 27 and GASB Statement No. 71 – Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68 this fiscal year. Under GASB 68, employers that participate in a defined benefit pension plan administered as a trust or equivalent arrangement are required to record the net pension asset, deferred pension related outflows, net pension liability, deferred pension related inflows of resources, and pension expense in its financial statements as part of the financial position. A restatement to record the effects of the new reporting guidance decreased beginning net position by $65,062,349 ($63,846,267 for governmental activities and $1,216,082 for business -type activities) to record net pension related assets, liabilities, and deferred outflow and inflow of resources pertaining to the PERS and PARS pension plans. More detailed information pertaining to the required reporting can be found in the Notes to the Financial Statements under Note 9 for Pension Plan Obligations for the California Public Employees Retirement System (PERS) and Note 10 for Pension Plan Obligations for the Public Agency Retirement Services (PARS) Retirement Enhancement Plan. As of the end of the fiscal year, the net pension related assets, liabilities, and deferred outflow and inflow of resources pertaining to the PERS and PARS pension plans amounted to a negative $56,410,281 ($55,245,564 for governmental activities and $1,164,717 for business -type activities) impact on the City's net position. • Total assets for the current year were $1,266,255,446, an increase by $24,719,209, or 2 %, from the prior year amount of $1,241,536,237. The most significant changes are due to the increases in cash and investments in the amount of $26,517,801 and in net capital assets in the amount of $6,316,343, and the decrease in Advances to the Successor Agency in the amount of $9,521,226. ❖ Cash and investments increased by $26,517,801 primarily due to the increases in the following funds: (1) General Fund in the amount of $5,700,022 due to its positive change in net position and a planned contribution to reserves; (2) Citywide Infrastructure Improvement Fund in the amount of $8,785,341 as a result of reimbursements from the Successor Agency's bond proceeds for the Hellman Avenue Storm Drain project and from SANBAG for their share of capital projects based on established reimbursement agreements; (3) Housing Successor Agency fund in the amount of $2,089,976 as a result of the transfer from the Successor Agency bond proceeds to the Housing Successor Agency in the amount of $4,320,145, as approved by the State Department of Finance; (4) Fire District in the amount of $2,195,476 due to its positive change in net position (5) Other Governmental Funds in the amount of $6,697,389 from net increases and decreases in various special revenue and capital project funds; (6) and the Municipal Utility fund in the amount of $2,016,044 due to its positive change in net position. ❖ Capital assets (e.g., infrastructure and other capital assets such as buildings, vehicles, furniture and fixtures, etc.) increased by $6,316,343, or 1%, net of accumulated depreciation. This increase in net capital assets is primarily due to a property transfer in the amount of $4,905,912 from the Successor Agency to the City as well as increases in capital construction projects. ❖ Advances to Successor Agency decreased from $9,521,226 to $0 due to management's decision to write off $9,521,226 of the advance at June 30, 2015, based on an adverse determination by the State Department of Finance subsequent to year end. A detailed explanation in regards to this write off can be found in Note 14 Advances from the City and Note 17 Subsequent Events. • Long -term debt outstanding (e.g., capital leases, advances, claims and judgments payable, and accrued employee benefits) decreased by $1,414,021 resulting from capital lease payments of $519,814 and changes in the liabilities for claims and judgments and accrued employee benefits in the amount of $894,207. 11 • Other liabilities (e.g., accounts payable, accrued interest, due to other governments, etc.) increased by $1,184,397 primarily due to the timing of payments at fiscal year end. • Comparative data is not available for the fiscal year 2013 -2014 net pension related asset, deferred outflows, net pension liability, and deferred inflows of resources due to the pension accounting change required by GASB 68 that was implemented in fiscal year 2014 -2015. TABLE 2 CHANGES IN NET POSITION (IN THOUSANDS) Year Ended June 30, 2015 12 Governmental Business -Type Activities Activity Total 2015 2014 2015 2014 2015 2014 REVENUES: Program Revenues: Charges for services $ 18,005 $ 16,323 $ 12,319 $ 11,636 $ 30,324 $ 27,959 Operating grants and contributions 8,216 9,238 - - 8,216 9,238 Capital grants and contributions 12,146 6,242 12,146 6,242 General Revenues: Taxes: Property taxes 75,350 70,933 - - 75,350 70,933 Admissions taxes 28 55 70 103 98 158 Transient occupancy taxes 2,729 2,555 - - 2,729 2,555 Sales taxes 28,043 26,277 28,043 26,277 Franchise taxes 7,753 7,515 7,753 7,515 Intergovernmental - Motor vehicle in -lieu 73 76 - - 73 76 Use of money and property 6,691 7,933 310 304 7,001 8,237 Other 10,088 8,820 17 60 10,105 8,880 Contributions from other governments - 29,853 - - - 29,853 Gain on sale of capital asset 101 101 TOTAL REVENUES 169,122 185,921 12,716 12,103 181,838 198,024 EXPENSES: General government 17,936 16,644 - - 17,936 16,644 Public safety - police 32,076 30,849 32,076 30,849 Public safety - fire protection 30,278 29,128 30,278 29,128 Public safety - animal center 2,723 2,570 2,723 2,570 Community development 14,900 15,773 14,900 15,773 Community services 14,995 13,690 14,995 13,690 Engineering and public works 29,181 29,600 29,181 29,600 Contributions to other governments 19 - 19 - Interest on long -term debt 239 234 - - 239 234 Sports Complex - - 2,536 2,186 2,536 2,186 Municipal Utility 8,342 8,174 8,342 8,174 Regis Connect - - 57 34 57 34 TOTAL EXPENSES 142,347 138,488 10,935 10,394 153,282 148,882 INCREASE (DECREASE) IN NET POSITION BEFORE TRANSFERS AND EXTRAORDINARY GAIN 26,775 47,433 1,781 1,709 28,556 49,142 TRANSFERS (201) (333) 201 333 - - EXTRAORDINARY GAIN (See Note 16) (295) 58 (295) 58 INCREASE (DECREASE) IN NET POSITION 26,279 47,158 1,982 2,042 28,261 49,200 Net Position at Beginning of Year 1,174,949 1,129,295 36,697 34,655 1,211,646 1,163,950 Restatement of Net Position (See Note 15) (63,846) (1,504) (1,216) - (65,062) (1,504) Net Position at End of Year $ 1,137,382 $ 1,174,949 $ 37,463 $ 36,697 $1,174,845 $ 1,211,646 12 The condensed statement of activities of the City's governmental and business -type operations for the period ended June 30, 2015 shows total net position increased by $28,261,901. Governmental activities increased the City of Rancho Cucamonga's net position by $26,279,286 accounting for approximately 93% of the total growth in net position, paired with an increase of $1,982,615 in the Business -Type activities' net position. The prior year's net position was restated to decrease by $65,062,349 ($63,846,267 for Governmental activities and $1,216,082 for Business -Type activities) due to the implementation of GASB 68. Governmental Activities The following charts provide a snapshot of the City's governmental activities for fiscal year 2014 -2015, showing the distribution of revenues by sources as well as a comparison of revenues versus expenses by program. Other 5.96% Use of Money & Property 3.96 % REVENUES BY SOURCE GOVERNMENTAL ACTIVITIES Year Ended June 30, 2015 Taxes $169,122,122 67.39% $180,000 Capital Contributions and Grants 7.18% Operating Contributions and Grants 4.86% EXPENSES AND PROGRAM REVENUES GOVERNMENTAL ACTIVITIES (IN THOUSANDS) Year Ended June 30, 2015 Charges for Services 10.65 % $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $ General General Public Safety- Public Safety- Public Safety- Community Community Engineering Contributions Interest on Subtotal Revenues, Total Government Police Fire Animal center Development Services and Public to Other Long Term Governmental Extraordinary Governmental Protection Works Governments Debt Activities Gain and Activities Transfers Revenues $6,031 $1,613 $1,534 $207 $3,967 $3,861 $21,154 $- $- $38,367 $130,755 $169,122 Expenses $17,936 $32,076 $30,278 $2,722 $14,900 $14,995 $29,181 $19 $239 $142,347 $496 $142,843 ■ Revenues ■ Expenses 13 Governmental Activities (In Thousands) Total Cost of Services 2015 2014 Net Cost of Services 2015 2014 General government $ 17,936 $ 16,644 $ (11,905) $ (11,273) Public safety - police 32,076 30,849 (30,464) (29,173) Public safety - fire protection 30,278 29,128 (28,743) (28,023) Public safety - animal center 2,723 2,570 (2,515) (2,383) Community development 14,900 15,773 (10,933) (13,397) Community services 14,995 13,690 (11,135) (9,591) Engineering and public works 29,181 29,600 (8,027) (12,612) Contributions to other governmer 19 - (19) - Interest on long -term debt 239 234 (239) (234) Total $ 142,347 $ 138,488 $ (103,980) $ (106,686) The City's governmental activities increased in net position by $26,279,286 at the end of the fiscal year. As compared to its prior year outcome of $47,156,907, this is a decrease by $20,877,621, or 44 %. In order of total dollar amount of change in the Governmental activities, the most significant changes in revenues and expenses were in the following categories: decrease of contributions from other governments, increase in capital grants and contributions, and increase in property taxes. • The decrease of contributions from other governments by $29,851,545 compared to the prior year was due to the prior year transfer from the Successor Agency's 2004 Tax Allocation Bonds proceeds to the City to fund the 1 -15 Interchange at Baseline capital project. The increase in taxes in the amount of $6,565,078 is primarily due to significant increases coming from property taxes in the amount of $4,416,638 and sales taxes in the amount of $1,766,066, which are signs that the economy continues to grow. • The increase in capital grants and contributions in the amount of $5,904,116 compared to the prior year was due to the receipt of reimbursements for certain capital projects based on agreements established in prior years for Engineering and Public Works related capital projects and increased developer participation costs from certain large housing and industrial developments. 14 Business -Type Activities The following chart reflects the City's Business -Type activities for fiscal year 2014 -2015, showing a comparison of revenues versus expenses by activity. $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2 000 ■ Sports Complex Revenues $1,904 Expenses $2,535 EXPENSES AND PROGRAM REVENUES BUSINESS -TYPE ACTIVITIES (IN THOUSANDS) Year Ended June 30, 2015 Municipal Utility $12,116 $9,527 ■ Revenues ■ Expenses REGIS Connect Total Business -Type Activities $83 $14,103 $57 $12,121 The City's Business -Type activities increase in net position of $1,982,615 decreased by $59,590, or 3 %, as compared to prior year amount of $2,042,205. In order of total dollar amount of change in the Business -Type activities, the most significant changes in revenue and expenses were in the following activities: • Sports Complex experienced a decrease in net position in the amount of $631,971, an increase of $412,123 from the prior year loss amount of $219,848. The decrease in net position is due to the less than anticipated transfer from the General Fund in order to utilize cash resources accumulated in prior years. • Municipal Utility experienced an increase in net position in the amount of $2,588,671, an increase of $351,718 from the prior year amount of $2,236,953. The increase in net position is primarily due to increased revenues. The Enclave at Homecoming Terra Vista, a new residential apartment complex, was completed during the fiscal year resulting in additional customer accounts. • REGIS Connect experienced steady growth in its net position for its second year of operations, with an increase in net position in the amount of $25,915. Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. The following financial analysis is performed only for the governmental and proprietary funds. The fiduciary funds are excluded from this analysis as they do not represent resources available to the City. 15 Governmental Funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, assigned and unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The combined fund balance of $422,048,710 represents the starting point for the reconciliation of the balance sheet of governmental funds to the statement of net position detailed on page 23 of this report. This total includes the General Fund balance of $106,150,753. Of the total General Fund balance, $4,024,826, or 4 %, constitutes non - spendable reserves, which means that these reserves must be maintained intact; $3,091,255, or 3 %, are restricted fund balances which are the result of external limitations on spending; $74,310,635, or 70 %, are committed fund balances which have resulted in internally- imposed limitations placed upon the funds by the City Council; and the assigned reserves of $24,724,037, or 23 %, are constrained by the City Council's intent for specific purposes, but are neither restricted nor committed, in accordance with City's policy. Restricted 2.91% Nonspendable 3.79% GENERAL FUND BALANCE June 30, 2015 $106,150,753 Committed 70.00% Assigned 23.29% The committed fund balances for the General Fund noted above are in accordance with the City's Fund Balance Policy. This policy ensures a prudent level of protection for the finances of the City in times of emergencies, revenue declines, and other unforeseen events. Certain committed funds enable the organization to operate in a business -like structure to address future liabilities while certain other committed funds help to support the City's credit rating which is also important to promote fiscal excellence. The City's Fund Balance Policy for the committed fund balances are as follows: • Changes in Economic Circumstances The City's General Fund balance committed for changes in economic circumstances is established at a goal of a six month reserve, or 50% 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 six month reserve, or 50% of the Fire District's operating budget for the upcoming fiscal year. As defined in the resolution establishing this commitment, the specific uses are listed as 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 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 three members, change the amount of this commitment and /or the specific uses of these monies. 16 • 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. • 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 committed for payment of general liability claims primarily through the use of interest earnings on the reserve but not limited to such in the event of an unfavorable interest rate environment is established at a minimum goal of seven times the City's total yearly SIR for all types of insurance coverage. • 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. • PERS Rate Stabilization The City's General Fund and Fire District's fund balance committed to offset projected rate increases identified in the respective annual CaIPERS actuarial valuation for two fiscal years after the year of financial reporting and identified by the City's actuarial consultant for three more years for a total of five years' projection. • Booking Fees The City's General Fund balance committed to provide funding for an increase in the booking fees charged to the City by the County of San Bernardino in the event that backfill funding is not provided by the State of California. • 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. 17 • Family Sports Center Replacement The City's General Fund balance committed for construction of the Family Sports Center Replacement and for the future replacement and repair of major capital assets comprising the new Family Sports Center. This reserve is established at a minimum goal of 105% of the estimated construction cost of the Center. Usage of the committed fund balances noted above as well as those designated as assigned in the General Fund's balance sheet is based on plans established by City management during the course of developing the annual budget each year. Reserves are set aside each year for specific purposes and are only used as designated by City management for those specific purposes. Recurring General Fund operations are fully funded without the use of reserves. The balance sheet presents the General Fund, the Citywide Infrastructure Improvement Special Revenue Fund, the Housing Successor Agency Special Revenue Fund, the Fire District Special Revenue Fund, and Other Governmental non -major funds. On pages 26 through 29 the governmental funds balance sheet is shown. The combined fund balance of $422,048,710 increased by $21,057,449 or approximately 5% from the prior year. The General Fund has a fund balance of $106,150,753, which has decreased by $3,041,723, or 3 %, from the prior year primarily due to net increases in revenues and expenditures and other financing uses in the amount of $6,479,503 and due to an extraordinary loss in the current year resulting from the write -off of advances to the Successor Agency in the amount of $9,521,226, as previously discussed. The Citywide Infrastructure Improvement has a fund balance of $16,774,657, which has increased by $10,503,506, or 167 %, primarily due to reimbursements from the Successor Agency's bond proceeds to fund the Hellman Avenue Storm Drain capital project and from San Bernardino Associated Governments (SANBAG) for their share of capital projects based on established agreements to be used for general infrastructure improvements throughout the City. The Housing Successor Agency Special Revenue Fund has a fund balance of $124,943,671, which has increased by $5,154,253, or 4 %, primarily due to the transfer of bond proceeds from the Successor Agency to the Housing Successor Agency. The transfer resulted in an extraordinary loss for the Successor Agency and an extraordinary gain for the Housing Successor Agency in the amount of $4,320,145, as discussed in Note 16 to the financial statements. The Fire District Special Revenue Fund (inclusive of the Fire District's General Fund, Community Facilities District (CFD) 85 -1 Fund, and Community Facilities District (CFD) 88 -1 Fund) has a fund balance of $68,998,074, which has increased by $3,671,940, or 6 %, primarily due to net increases in revenues and expenditures. Property tax revenues increased by $1,948,546 from the prior year. It should be noted that the total fund balance for the Fire District Special Revenue Fund of $68,998,074 is $3,522,987 less than the total fund balance per the District's component unit financial statements of $72,521,061. This is due to differences in the reporting of the advance from the City to the District on the City's financial statements versus the District's component unit financial statements. On the City's financial statements, the advance is treated as an interfund liability since the District is basically viewed as one of the departments of the City. (There is an offsetting interfund asset (advances to other funds) in the General Fund). In order to reflect this liability on the District's balance sheet within the City's financial statements, resources must be allocated from the District's fund balance to provide funding for the liability for reporting purposes only. On the Fire District's component unit financial statements, the advance is treated as a long- term liability and does not require the allocation of fund balance to fund the liability. For the entity -wide financial statements, the advances to and from other funds are eliminated against each other as they both relate to the City as a whole. 18 The other governmental funds are what make up the remainder of the combined fund balance for all governmental funds. These funds consist of the City's 52 special revenue funds and 13 capital project funds. These funds have a combined fund balance of $105,181,555, which has increased by $4,769,473, or 5 %, from the prior year, primarily due to increases in developer participation fees for both housing and industrial developments. Proprietary Funds. The City's proprietary funds consist of three major enterprise funds and two internal service funds. The three major enterprise funds are the Sports Complex Fund, which accounts for the activities of the Sports Complex; the Rancho Cucamonga Municipal Utility (RCMU) Fund which accounts for the City's electric utility operations; and the Rancho Cucamonga Enterprise Geographic Information Systems (REGIS) Connect Fund, which accounts for the City's enterprise Geographic Information Systems (GIS) services. The internal service funds are the Equipment and Vehicle Replacement Fund and the Computer Equipment /Technology Replacement Fund. These funds are used by management to charge the costs of certain activities, such as equipment replacement, to individual funds. Net position for the enterprise funds is $37,463,332 of which $25,869,537 represents the amount invested in capital assets and $718,571 is restricted for the purpose of public benefit through the Municipal Utility. Unrestricted net position amounts to $10,875,224. The increase in net position for the enterprise funds is $2,003,555, due to revenues exceeding expenditures during the year predominantly coming from the Municipal Utility. Before transfers, the Municipal Utility Fund generated income (the net of revenues and expenses) in the amount of $3,774,031 providing funding for the budgeted transfer of $1,185,360 to the General Fund to support general City operations. Taking this transfer into consideration results in a net increase in the fund's net position of $2,588,671. As discussed earlier, the increase to the net position is due to additional residential customers during the fiscal year as a result of the completion of a residential apartment complex. Before transfers, the Sports Complex Fund experienced a loss of $2,018,311. As discussed earlier, the decrease to the net position is due to the less than anticipated transfer from the General Fund in order to utilize cash resources accumulated in prior years. For its second full year of operations, REGIS Connect generated net income in the amount of $25,915. Net position for the internal service funds is $13,373,214, of which $2,126,789 represents the amount invested in capital assets. Unrestricted net position amounts to $11,246,425 which will be used to cover operations and future equipment and vehicle and computer equipment /technology replacements. Total net position decreased for these funds by $474,698 due its operational costs. The Equipment and Vehicle Replacement Fund experienced a loss in the amount of $582,012 paired with the loss in the Computer Equipment /Technology Replacement Fund before transfers from the General Fund in the amount of $739,357. The General Fund transferred $846,671 to the Computer Equipment and Technology Replacement Fund to offset a portion of its operational costs and provide funding for future technology replacements for community development resulting in an increase in net position for the Computer Equipment /Technology Replacement Fund in the amount of $107,314. General Fund Budgetary Highlights During the year, with the recommendation from the City's staff, the City Council may revise the City's budget as needed. Adjustments were made periodically as additional appropriations were necessary to cover the cost of projects that either had required change orders for additional work, or the estimated cost at the beginning of the project changed due to external factors. Adjustments were also made through increases or decreases to budgets in order to maintain the current level of services. For example, increased development activity may result in the need to utilize additional contract inspector services to handle the additional workload. All amendments that either increase or decrease appropriations are approved by the City Council. 19 For the City's General Fund, ending revenues of $75,104,813 were $2,201,813 more than the final budgeted revenues of $72,903,000. This positive variance was primarily due to more than anticipated tax revenues (including post -RDA residual balance distributions to all taxing entities) in the amount of $1,442,481, charges for services from Planning fees and Engineering fees in the amount of $365,222, and fines and forfeitures in the amount of $284,356. The remaining difference is due to offsetting variances within other line items. The General Fund's actual ending expenditures of $80,526,274 were $4,504,446 less than the final budget of $76,021,828. The significant areas that showed positive variances from the budget are: General Overhead in the amount of $366,640 for less than anticipated expenditures for contract services; City Management in the amount of $126,462 due to salary savings; City Facilities in the amount of $194,606 due to savings from office supplies and equipment, operations and maintenance, and electric utilities; Finance in the amount of $166,406 due to salary savings; Management Information Services in the amount of $177,327 due to salary savings; all other functions of the general government netted to savings of $436,774; Public Safety - Police had savings in vehicle operations and Sheriff contract services in the amount of $655,454; Community Development — Building and Safety in the amount of $101,346; Community Development — Planning's contract services and other functions of the division in the amount of $499,959; Park Maintenance in the amount of $333,080 due to water utilities, contract services, and salary savings; Facilities Maintenance in the amount of $454,112 due to salary savings, contract services, and operations and maintenance cost savings; Street Maintenance in the amount of $132,144 due to personnel and contract services cost savings; and Capital Outlay in the amount of $670,285 due to partially spending on certain projects and other projects that were planned but not started during the fiscal year. Additional savings occurred in many of the other General Fund departments. The remaining budget variances from the other divisions can be found in page 104, Budgetary Comparison Schedule for the General Fund. Capital Assets and Debt Administration Capital Assets As stated in the Overview of the Financial Statements, the financial statement format required by GASB 34 reflects the capitalization and depreciation of infrastructure and other capital assets (e.g., buildings, vehicles, furniture and fixtures, etc.). At the end of the fiscal year, the City had $752,396,904, net of depreciation, invested in a broad range of capital assets (see Table 3 below). This amount represents a net increase (including additions and deductions) of $6,316,343 from prior year. The most significant changes in capital assets for governmental activities are the property transfer from the Successor Agency to the City in the amount of $4,905,912 and the increase in construction in progress (CIP) primarily for the Wilson Avenue Extension -East and Wardman /Bullock project, the 1 -15 Interchange at Baseline, and Fire Station building improvement and training center projects. Other increases to the CIP are infrastructure improvements to the City's traffic signal, off -road trails, as well as road and storm drain improvement projects. The most significant change in capital assets for business -type activities is the increase in CIP pertaining to the Arrow Route Electric Line Extension project. Additional information on the City's capital assets can be found in Note 5 in the financial statements 20 Debt Administration At year end, the City's governmental activities had total debt outstanding in the amount of $16,261,452 for capital leases, advances from Successor Agency, claims and judgments payable, and accrued employee benefits, compared to $17,675,473 in the prior year, a decrease by $1,414,021. (See Table 4 below). TABLE 4 OUTSTANDING DEBT (IN THOUSANDS) For The Fiscal Year Ended June 30, 2015 Additional information on the City's outstanding debts can be found in the Note 7 to the financial statements of this report. Economic Factors and Next Year's Budgets Since the nationwide recession began in Fiscal Year 2009 -2010, in its third quarterly report of 2015, the UCLA Anderson Forecast indicates that the U.S. economy for the next two years is a healthy one, a slim chance of recession and slight chance of a surge in growth. The forecast for the nation's Gross Domestic Product (GDP) growth is in the 2 percent to 3 percent range with slightly better growth anticipated in 2016 followed by a slight downturn thereafter. The forecast anticipates an improving labor market, a declining unemployment rate, and a rising employment to population ratio. The state's unemployment rate according to the Employment Development Department (EDD) as of October's news release is now at 5.9 percent. According to the UCLA Anderson Forecast, the unemployment rate will continue to decrease through the next year and will average 5.2% with an additional decrease to about 4.8% in 2017. Home prices in California will become less affordable despite higher interest rates over the next two years, as new building fails to meet the demand. There may be lots of job growth, but because of strict building and environmental regulations, there will be very little increase in the housing supply. This means that we may not expect to see housing more affordable during the next few years. Locally, Rancho Cucamonga is continuously experiencing slow improvements in the unemployment rate and growth in property tax and sales tax revenues. In October 2015, the City's unemployment rate continued to decrease. The State Employment Development Department reported an unemployment rate of 4.3% for Rancho Cucamonga, compared to 5.8% in San Bernardino County. This is a 0.7% decrease from the November 2014 rate of 5.0% for Rancho Cucamonga. New home construction has begun to pick up. Other construction activity is increasing as well, which will improve assessed values and add jobs in many cases. Continued increases in property tax and sales tax revenues are indicators of positive growth within the City. Based on the California Municipal Financial Health Diagnostic, the City's General Fund is in a very healthy condition, with some notes of caution in categories of fixed costs and labor costs and General Fund subsidies of other funds. The Financial Health Diagnostic shows that the General Fund shows healthy conditions in the following areas: Net Operating deficit/surplus, Fund Balance, Liquidity, Constraints on budgetary discretion, Balancing the budget with temporary funds, Balance the budget with borrowing, Balancing the budget by deferring employee compensation costs, Balancing the budget with back loaded debt service payments, funding operating costs with noon - recurring development revenues, Timeliness and accuracy of financial reports, and Service level solvency. 21 Governmental Business -Type Activities Activities Total 2015 2014 2015 2014 2015 2014 Capital Leases $ 1,564 $ 2,084 $ - $ - $ 1,564 $ 2,084 Advances from Successor Ac 3,953 3,954 3,953 3,954 Claims and Judgments Payat 3,420 4,179 - - 3,420 4,179 Accrued Employee Benefits 7,324 7,458 - - 7,324 7,458 TOTALS $16,261 $17,675 $ - $ - $16,261 $17,675 Additional information on the City's outstanding debts can be found in the Note 7 to the financial statements of this report. Economic Factors and Next Year's Budgets Since the nationwide recession began in Fiscal Year 2009 -2010, in its third quarterly report of 2015, the UCLA Anderson Forecast indicates that the U.S. economy for the next two years is a healthy one, a slim chance of recession and slight chance of a surge in growth. The forecast for the nation's Gross Domestic Product (GDP) growth is in the 2 percent to 3 percent range with slightly better growth anticipated in 2016 followed by a slight downturn thereafter. The forecast anticipates an improving labor market, a declining unemployment rate, and a rising employment to population ratio. The state's unemployment rate according to the Employment Development Department (EDD) as of October's news release is now at 5.9 percent. According to the UCLA Anderson Forecast, the unemployment rate will continue to decrease through the next year and will average 5.2% with an additional decrease to about 4.8% in 2017. Home prices in California will become less affordable despite higher interest rates over the next two years, as new building fails to meet the demand. There may be lots of job growth, but because of strict building and environmental regulations, there will be very little increase in the housing supply. This means that we may not expect to see housing more affordable during the next few years. Locally, Rancho Cucamonga is continuously experiencing slow improvements in the unemployment rate and growth in property tax and sales tax revenues. In October 2015, the City's unemployment rate continued to decrease. The State Employment Development Department reported an unemployment rate of 4.3% for Rancho Cucamonga, compared to 5.8% in San Bernardino County. This is a 0.7% decrease from the November 2014 rate of 5.0% for Rancho Cucamonga. New home construction has begun to pick up. Other construction activity is increasing as well, which will improve assessed values and add jobs in many cases. Continued increases in property tax and sales tax revenues are indicators of positive growth within the City. Based on the California Municipal Financial Health Diagnostic, the City's General Fund is in a very healthy condition, with some notes of caution in categories of fixed costs and labor costs and General Fund subsidies of other funds. The Financial Health Diagnostic shows that the General Fund shows healthy conditions in the following areas: Net Operating deficit/surplus, Fund Balance, Liquidity, Constraints on budgetary discretion, Balancing the budget with temporary funds, Balance the budget with borrowing, Balancing the budget by deferring employee compensation costs, Balancing the budget with back loaded debt service payments, funding operating costs with noon - recurring development revenues, Timeliness and accuracy of financial reports, and Service level solvency. 21 As the financial condition of the City continues to be relatively stable and sufficiently adequate as expected by the citizens, the City also faces a spectrum of challenges to create a better future. The primary challenges can be summarized as follows: increases in water cost and observing drought and mandatory requirements for water conservation due to climate change, increases in contract costs from vendors who held costs without an increase for 3 -5 years are now needing to increase their contract costs due to inflation, increases in law enforcement services with San Bernardino County Sheriffs Department, minimum wage increases effective January 2016, requirements of the Affordable Care Act, and mandatory sick time for part -time employees. It is also a challenge for the City to ensure that the special districts, LMDs, SLDs, and CFDs, remain fiscally stable without relying on the General Fund for a permanent subsidy. The City's operating budget is comprised of the City General Fund, the Library Fund, and the Fire District Operating Funds (including CFDs 85 -1 and 88 -1). The Fiscal Year 2015 -2016 City General Fund Budget is $74,273,520 and for the third year in a row does not require the use of General Fund reserves. The operating budget represents a $5,110,530 or 7.4% increase from FY 2014 -2015. The recommended FY 2015 -2016 operating budget for the Fire District is $32,048,450. This is a $773,920 or 2.5% increase over FY 2014 -2015. The budget is balanced without the use of reserves. The FY 2015 -2016 Library budget is $4,493,180 which represents an increase of $271,160 or 6.4% from FY 2014 -2015. Additional details regarding the City's operating budget and its overall Fiscal Year 2015 -2016 Adopted Budget can be found on the City's website at https:/ /www.citvofrc.us /citvhall /admin /finance /budgeting.asp. Questions or requests for information regarding the Adopted Budget should be directed to the Finance Department at the address below. Contacting the City's Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Rancho Cucamonga's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department at the City of Rancho Cucamonga, 10500 Civic Center Drive, Rancho Cucamonga, CA 91730. 22 CITY OF RANCHO CUCAMONGA STATEMENT OF NET POSITION JUNE 30, 2015 Assets: Cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Other loans Grants Internal balances Prepaid costs Deposits Due from external parties /outside agencies Prepaid other post employment benefits Net pension asset Land held for resale Restricted assets: Cash with fiscal agent Capital assets, not being depreciated Capital assets, net of depreciation Total Assets Deferred Outflows of Resources: Deferred pension related items Total Deferred Outflows of Resources Liabilities: Accounts payable Accrued liabilities Unearned revenue Deposits payable Due to other governments Due to Successor Agency Noncurrent liabilities: Due within one year Due in more than one year Net pension liability Total Liabilities Deferred Inflows of Resources: Deferred pension related items Total Deferred Inflows of Resources Net Position: Net investment in capital assets Restricted for: Community development projects Public safety Fire protection Public works Community services Capital projects Public benefit - Municipal Utility Unrestricted Total Net Position See Notes to Financial Statements 23 Primary Government Governmental Business -Type Activities Activities Total $ 308,029,344 $ 12,389,756 $ 320,419,100 14,410,676 1,661,982 16,072,658 8,905,892 - 8,905,892 139,184,027 2,102 139,186,129 408,047 16,175 424,222 1,104,828 - 1,104,828 1,262,047 - 1,262,047 17,082 (17,082) - 288,912 8,675 297,587 35,000 - 35,000 376,711 - 376,711 15,668,161 - 15,668,161 5,114,048 224,952 5,339,000 3,426,211 - 3,426,211 1,340,996 - 1,340,996 368,410,825 7,278,957 375,689,782 358,116,542 18,590,580 376,707,122 1,226,099,349 40,156,097 1,266,255,446 6,871,580 175,474 7,047,054 6,871,580 175,474 7,047,054 7,835,490 973,135 8,808,625 2,251,866 60,690 2,312,556 556,096 - 556,096 42,959 269,271 312,230 1,104,828 - 1,104,828 305,314 - 305,314 7,162,150 - 7,162,150 9,099,302 - 9,099,302 49,702,123 1,134,957 50,837,080 78,060,128 2,438,053 80,498,181 17,529,069 430,186 17,959,255 17,529,069 430,186 17,959,255 723,399,215 25,869,537 749,268,752 158,779,240 - 158,779,240 1,147,693 - 1,147,693 46,973,722 - 46,973,722 43,565,869 - 43,565,869 9,794,775 - 9,794,775 34,027,785 - 34,027,785 - 718,571 718,571 119,693,433 10,875,224 130,568,657 $ 1,137,381,732 $ 37,463,332 $ 1,174,845,064 CITY OF RANCHO CUCAMONGA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2015 Business -Type Activities Sports Complex 2,536,440 262,818 - - Municipal Utility Program Revenues REGIS Connect 57,003 82,490 - - Total Business -Type Activities 10,935,320 12,318,727 - - Operating Capital General Revenues: Charges for Contributions Contributions Property taxes, levied for general purpose Expenses Services and Grants and Grants Functions /Programs Sales taxes Franchise taxes Primary Government: Use of money and property Other Governmental Activities: Extraordinary gain (loss) Transfers General government $ 17,936,363 $ 4,877,282 $ 1,153,673 $ - Public safety - police 32,076,421 1,203,718 409,032 - Public safety - fire protection 30,277,795 1,465,438 - 68,895 Public safety - animal center 2,721,890 206,941 - - Community development 14,899,940 2,756,100 1,211,073 - Community services 14,995,308 3,162,413 698,578 - Engineering and public works 29,180,515 4,332,873 4,743,834 12,077,059 Contributions to other governments 19,087 - - - Interest on long -term debt 239,368 - - - Total Governmental Activities 142,346,687 18,004,765 8,216,190 12,145,954 Business -Type Activities Sports Complex 2,536,440 262,818 - - Municipal Utility 8,341,877 11,973,419 - - REGIS Connect 57,003 82,490 - - Total Business -Type Activities 10,935,320 12,318,727 - - Total Primary Government $ 153,282,007 $ 30,323,492 $ 8,216,190 $ 12,145,954 General Revenues: Taxes: Property taxes, levied for general purpose Admissions tax Transient occupancy taxes Sales taxes Franchise taxes Motor vehicle in lieu - unrestricted Use of money and property Other Extraordinary gain (loss) Transfers Total General Revenues, Extraordinary Gain and Transfers Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at End of Year See Notes to Financial Statements 24 Net (Expenses) Revenues and Changes in Net Position Primary Government Governmental Business -Type Activities Activities Total $ (11,905,408) $ - $ (11,905,408) (30,463,671) - (30,463,671) (28,743,462) - (28,743,462) (2,514,949) - (2,514,949) (10,932,767) - (10,932,767) (11,134,317) - (11,134,317) (8,026,749) - (8,026,749) (19,087) - (19,087) (239,368) - (239,368) (103,979,778) - (103,979,778) - (2,273,622) (2,273,622) - 3,631,542 3,631,542 - 25,487 25,487 - 1,383,407 1,383,407 (103,979,778) 1,383,407 (102,596,371) 75,349,599 - 75,349,599 27,642 70,278 97,920 2,729,270 - 2,729,270 28,043,495 - 28,043,495 7,753,103 - 7,753,103 73,316 - 73,316 6,691,150 310,644 7,001,794 10,087,638 17,306 10,104,944 (295,169) - (295,169) (200,980) 200,980 - 130,259,064 599,208 130,858,272 26,279,286 1,982,615 28,261,901 1,174,948,713 36,696,799 1,211,645,512 (63,846,267) (1,216,082) (65,062,349) $ 1,137,381,732 $ 37,463,332 $ 1,174,845,064 See Notes to Financial Statements 25 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2015 Assets: Cash and investments Receivables: Accounts Taxes Notes Accrued interest Deferred loans Grants Prepaid costs Deposits Due from other funds Advances to other funds Due from external parties /outside agencies Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Due to Successor Agency Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources $ 1,681,280 $ 37,609 $ 1,000 $ 531,740 1,175,433 - - 656,561 42,959 - 1,972 305,314 - - - - - 3,522,987 3,206,958 37,609 1,000 4,711,288 2,670,788 8,974,429 20,834,255 2,670,788 8,974,429 20,834,255 See Notes to Financial Statements 26 Special Revenue Funds Citywide Housing Infrastructure Successor General Improvement Agency Fire District $ 97,211,254 $ 15,024,678 $ 3,833,692 $ 71,868,320 1,465,481 10,736,789 402,287 1,424,020 7,775,381 - - 249,867 - - 139,184,027 - 155,288 25,228 1,620 101,324 181,839 - 7,300 65,831 20,000 - - - 1,019,558 - 3,822,987 - 376,711 - - - - 2,350,000 - $ 112,028,499 $ 25,786,695 $ 145,778,926 $ 73,709,362 $ 1,681,280 $ 37,609 $ 1,000 $ 531,740 1,175,433 - - 656,561 42,959 - 1,972 305,314 - - - - - 3,522,987 3,206,958 37,609 1,000 4,711,288 2,670,788 8,974,429 20,834,255 2,670,788 8,974,429 20,834,255 See Notes to Financial Statements 26 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2015 Assets: Cash and investments Receivables: Accounts Taxes Notes Accrued interest Deferred loans Grants Prepaid costs Deposits Due from other funds Advances to other funds Due from external parties /outside agencies Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Due to Successor Agency Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources See Notes to Financial Statements 27 Other Total Governmental Governmental Funds Funds $ 108,719,819 $ 296,657,763 378,580 14,407,157 880,644 8,905,892 - 139,184,027 110,269 393,729 1,104, 828 1,104, 828 1,262,047 1,262,047 33,942 288,912 15,000 35,000 5,126 1,024,684 - 3,822,987 - 376,711 1,076,211 3,426,211 1,340,996 1,340,996 $ 114,927,462 $ 472,230,944 $ 5,440,868 $ 7,692,497 419,872 2,251,866 556,096 556,096 - 42,959 1,104, 828 1,104, 828 1,005,630 1,007,602 - 305,314 300,000 3,822,987 8,827,294 16,784,149 918,613 33,398,085 918,613 33,398,085 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2015 See Notes to Financial Statements 28 Special Revenue Funds Citywide Housing Infrastructure Successor General Improvement Agency Fire District Fund Balances: Nonspendable: Prepaid costs 181,839 - 7,300 65,831 Deposits 20,000 - - - Notes and loans - - 118,349,772 - Land held for resale - - 2,350,000 Advances to other funds 3,822,987 - - - Restricted: Community development projects - - 4,236,599 Public safety - police - - - - Parks and recreation - - Engineering and public works - - - Capital improvement projects 211,852 16,774,657 1,864,628 Street lighting - - - Landscape maintenance - - Library services - - - Underground utilities Technology replacement 69,808 - 22,733 General plan update 198,794 - - Contractual obligation 2,081,700 - 2,026,253 Information technology 512,564 - - SB1186 certified access specialist services 16,537 - - Committed: Vehicle and equipment replacement - - 3,630,871 Working capital 3,713,676 - 13,492,437 Booking fees 1,391,059 - - City facilities capital repair 26,817,567 - - Changes in economic circumstances 17,491,373 - 8,890,876 Employee leave payouts 4,611,424 - 2,783,523 Self insurance 7,583,333 - - Fire District facilities capital repair - - 8,642,982 PERS rate stabilization 100,000 - 3,799,274 Family sports center replacement 5,796,414 - - Law enforcement 6,805,789 - - Assigned: Radio system acquisition 501,722 - - Communications - - 1,153,445 Dispatch system acquisition - - 420,613 City infrastructure 19,020,323 - - Capital projects - - 22,124,220 Economic and community development special services 1,888,563 - - Sphere of influence issues 2,709,910 - - Animal Center operations 400,781 - - GASB 31 unrealized gain 7,214 - 7,054 Mobile home park program 109,339 - - Continuing operations 86,185 - 73,334 Unassigned - - - - Total Fund Balances 106,150,753 16,774,657 124,943,671 68,998,074 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 112,028,499 $ 25,786,695 $ 145,778,926 $ 73,709,362 See Notes to Financial Statements 28 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2015 Fund Balances: Nonspendable: Prepaid costs Deposits Notes and loans Land held for resale Advances to other funds Restricted: Community development projects Public safety - police Parks and recreation Engineering and public works Capital improvement projects Street lighting Landscape maintenance Library services Underground utilities Technology replacement General plan update Contractual obligation Information technology SB1186 certified access specialist services Committed: Vehicle and equipment replacement Working capital Booking fees City facilities capital repair Changes in economic circumstances Employee leave payouts Self insurance Fire District facilities capital repair PERS rate stabilization Family sports center replacement Law enforcement Assigned: Radio system acquisition Communications Dispatch system acquisition City infrastructure Capital projects Economic and community development special services Sphere of influence issues Animal Center operations GASB 31 unrealized gain Mobile home park program Continuing operations Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances See Notes to Financial Statements 29 Other Total Governmental Governmental Funds Funds 33,942 288,912 15,000 35,000 - 118,349,772 1,076,211 3,426,211 - 3,822,987 15,197,109 19,433, 708 1,147, 092 1,147, 092 2,763,319 2,763,319 43,864,144 43,864,144 5,277,632 24,128,769 5,027,612 5,027,612 12, 533, 983 12, 533, 983 7,105,908 7,105,908 11,653,943 11,653,943 - 92,541 - 198,794 - 4,107,953 - 512,564 - 16,537 - 3,630,871 - 17,206,113 - 1,391,059 - 26,817,567 - 26,382,249 - 7,394,947 - 7,583,333 - 8,642,982 - 3,899,274 - 5,796,414 - 6,805,789 - 501,722 - 1,153,445 - 420,613 - 19,020,323 - 22,124,220 - 1,888,563 - 2,709,910 - 400,781 - 14,268 - 109,339 - 159,519 (514,340) (514,340) 105,181,555 422,048,710 $ 114,927,462 $ 472,230,944 THIS PAGE INTENTIONALLY LEFT BLANK 30 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2015 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. Deferred outflows related to pension related items are not included in the governmental fund activity: Contributions made after the measurement date $ 6,687,247 Differences between actual contributions and the proportionate share of contributions 184,333 Deferred inflows related to pension related items are not included in the governmental fund activity: Difference between projected and actual earnings on pension plans investments (17,131,912) Differences in proportions (397,157) Long -term debt, compensated absences and net pension liability are not included in the governmental fund activity: Advances from Successor Agency Claims and judgments Capital leases Compensated absences Net pension liability Governmental funds report all OPEB contributions as expenditures; however, in the statement of net position, any excesses or deficiencies in contributions in relation to the Annual Required Contribution (ARC) are recorded as an asset or liability. Governmental funds report all PARS contributions as expenditures; however, in the statement of net position, any excesses or deficiencies in contributions in relation to the Annual Required Contribution (ARC) are recorded as an asset or liability. Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds are added to the statement of net position. Net position of governmental activities See Notes to Financial Statements 31 (3,953,624) (3,419,806) (61,920) (7,323,946) (49,702,123) 422,048,710 722,898,422 6,871,580 (17,529,069) (64,461,419) 15,668,161 5,114,048 33,398,085 13,373,214 $ 1,137,381,732 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Public safety - animal center Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Proceeds from sale of capital asset Contributions to other governments Total Other Financing Sources (Uses) Extraordinary gain /(loss) Net Change in Fund Balances Fund Balances: Beginning of year End of Year General Special Revenue Funds Citywide Housing Infrastructure Successor Improvement Agency Fire District $ 60,564,721 $ - $ - $ 35,551,660 3,919,093 - - 23,095 390,032 4,995,804 - - 3,250,622 - - 23,564 1,166,514 116,460 397,884 1,005,712 1,402,246 - - 38,985 35,658 - - - 3,167,846 6,028,318 547,742 1,151,702 73,896,732 11,140,582 945,626 37,794,718 11,825,566 - - - 31,213,894 - - - - - - 29,479,779 2,745,903 - - - 4,108,849 - 111,518 - 4,212,357 - - - 10,666,160 36,178 - - 1,161,719 600,898 - 4,467,269 8,885 - - 3,126 5,572 - - 174,061 65,948,905 637,076 111,518 34,124,235 7,947,827 10,503,506 834,108 3,670,483 1,185, 360 - - - (2,676,405) - - - 22,721 - - 1,457 (1,468, 324) - - 1,457 (9,521,226) - 4,320,145 - (3,041,723) 10,503,506 5,154,253 3,671,940 109,192,476 6,271,151 119,789,418 65,326,134 $ 106,150,753 $ 16,774,657 $ 124,943,671 $ 68,998,074 See Notes to Financial Statements 32 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Public safety - animal center Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Proceeds from sale of capital asset Contributions to other governments Total Other Financing Sources (Uses) Extraordinary gain /(loss) Net Change in Fund Balances Fund Balances: Beginning of year End of Year See Notes to Financial Statements 33 Other Governmental Funds $ 17,033,275 303,500 9,770,993 3,447,939 2,230,664 726,757 12,051,237 1,381,209 46,945,574 4,211,369 339,700 47,122 10,426,235 8,027,260 6,281,880 13,256,700 8,093 2,049 42,600,408 4,345,166 874,784 (431,390) (19,087) Total Governmental Funds $ 113,149,656 4,245,688 15,156, 829 6,722,125 4,917,234 1,441,231 762,415 12,051,237 12,276,817 170,723,232 16,036,935 31,553,594 29,526,901 2,745,903 14,646,602 12,239,617 16,984,218 19,486, 586 20,104 181,682 143,422,142 27,301,090 2,060,144 (3,107,795) 24,178 (19,087) 424,307 (1,042,560) 4,769,473 100,412,082 $ 105,181,555 (5,201,081) 21,057,449 400,991,261 $ 422,048,710 THIS PAGE INTENTIONALLY LEFT BLANK 34 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2015 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. Capital outlay $ 17,153,621 Capital assets contributed from the Successor Agency 4,905,912 Depreciation (14,192,538) Gain /(loss) on sale of capital assets (1,785,135) The issuance of long -term debt provides current financial resources to governmental funds, while repayment of principal of long -term debt consumes current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Capital lease principal payments 20,104 Change in claims and judgments payable 759,225 Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Governmental funds report all contributions in relation to the annual required contribution (ARC) for OPEB as expenditures; however, in the statement of activities, only the ARC is an expense. Governmental funds report all contributions in relation to the annual required contribution (ARC) for PARS as expenditures; however, in the statement of activities, only the ARC is an expense. Pension obligation expenses is an expenditure in the governmental funds, but reduce the Net Pension Liability in the statement of net position. Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds are added to the statement of net position. Change in net position of governmental activities See Notes to Financial Statements 35 $ 21,057,449 6,081,860 779,329 134,982 (520,914) 218,506 818,310 (1,815,538) (474,698) $ 26,279,286 CITY OF RANCHO CUCAMONGA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2015 Net Position: Business -Type Activities - Enterprise Funds Governmental Net investment in capital assets 13,200,531 12,669,006 Activities - 2,126,789 Sports Municipal REGIS - 718,571 Internal Unrestricted Complex Utility Connect Total Service Funds Assets: 24,956,920 51,015 37,463,332 13,373,214 Total Liabilities, Deferred Inflows of Current: Resources and Net Position $ 13,611,453 $ 26,666,677 Cash and investments $ 120,768 $12,230,680 $ 38,308 $ 12,389,756 $ 11,371,581 Receivables: Accounts 25,240 1,604,540 32,202 1,661,982 3,519 Notes and loans - 2,102 - 2,102 - Accrued interest - 16,162 13 16,175 14,318 Prepaid costs - 8,675 - 8,675 - Net Pension Asset 145,303 79,649 - 224,952 - Total Current Assets 291,311 13,941,808 70,523 14,303,642 11,389,418 Noncurrent: Capital assets - net of accumulated depreciation 13,200,531 12,669,006 - 25,869,537 3,628,945 Total Noncurrent Assets 13,200,531 12,669,006 - 25,869,537 3,628,945 Total Assets 13,491,842 26,610,814 70,523 40,173,179 15,018,363 Deferred Outflows of Resources: Deferred pension related items 119,611 55,863 - 175,474 - Total Deferred Outflows of Resources 119,611 55,863 - 175,474 - Total Assets and Deferred Outflows of Resources $ 13,611,453 $26,666,677 $ 70,523 $ 40,348,653 $ 15,018,363 Liabilities, Deferred Inflows of Resources and Net Position: Liabilities: Current: Accounts payable $ 89,677 $ 881,032 $ 2,426 $ 973,135 $ 142,993 Accrued liabilities 43,187 17,503 - 60,690 - Deposits payable - 269,271 - 269,271 - Due to other funds - - 17,082 17,082 - Capitalleases - - - - 508,516 Total Current Liabilities 132,864 1,167,806 19,508 1,320,178 651,509 Noncurrent: Capital leases - - - - 993,640 Net pension liability 742,289 392,668 - 1,134,957 - Total Noncurrent Liabilities 742,289 392,668 - 1,134,957 993,640 Total Liabilities 875,153 1,560,474 19,508 2,455,135 1,645,149 Deferred Inflows of Resources: Deferred pension related items 280,903 149,283 - 430,186 - Total Deferred Inflows of Resources 280,903 149,283 - 430,186 - Net Position: Net investment in capital assets 13,200,531 12,669,006 - 25,869,537 2,126,789 Restricted for public benefit - Municipal Utility - 718,571 - 718,571 - Unrestricted (745,134) 11,569,343 51,015 10,875,224 11,246,425 Total Net Position 12,455,397 24,956,920 51,015 37,463,332 13,373,214 Total Liabilities, Deferred Inflows of Resources and Net Position $ 13,611,453 $ 26,666,677 $ 70,523 $ 40,348,653 $ 15,018,363 See Notes to Financial Statements 36 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Total Nonoperating Business -Type Activities - Enterprise Funds Governmental Revenues (Expenses) 70,287 Activities - 428 Sports Municipal REGIS (2,018,311) Internal 25,915 Complex Utility Connect Total Service Funds Operating Revenues: 1,386,340 846,671 Transfers out - (1,185,360) Sales and service charges $ 262,818 $ 11,973,419 $ 82,490 $ 12,318,727 $ 198,963 Rent 179,308 - - 179,308 - Miscellaneous 5,716 11,590 - 17,306 - Total Operating Revenues 447,842 11,985,009 82,490 12,515,341 198,963 Operating Expenses: $ 36,696,799 $ 13,847,912 Restatements (796,794) (419,288) Salaries and benefits 1,228,415 482,188 - 1,710,603 - Maintenance and operations 580,926 6,335,639 57,003 6,973,568 574,231 Contractual services 294,778 793,090 - 1,087,868 - Depreciation expense 432,321 730,960 - 1,163,281 1,078,665 Total Operating Expenses 2,536,440 8,341,877 57,003 10,935,320 1,652,896 Operating Income (Loss) (2,088,598) 3,643,132 25,487 1,580,021 (1,453,933) Nonoperating Revenues (Expenses): Admissions tax 70,278 - - 70,278 - Interest revenue 9 130,899 428 131,336 190,250 Interest expense - - - - (57,686) Total Nonoperating Revenues (Expenses) 70,287 130,899 428 201,614 132,564 Income (Loss) Before Transfers (2,018,311) 3,774,031 25,915 1,781,635 (1,321,369) Transfers in 1,386,340 - - 1,386,340 846,671 Transfers out - (1,185,360) - (1,185,360) - Changes in Net Position $ (631,971) $ 2,588,671 $ 25,915 $ 1,982,615 $ (474,698) Net Position: Beginning of Year, as previously reported $ 13,884,162 $ 22,787,537 $ 25,100 $ 36,696,799 $ 13,847,912 Restatements (796,794) (419,288) - (1,216,082) - Beginning of Fiscal Year, as restated 13,087,368 22,368,249 25,100 35,480,717 13,847,912 Changes in Net Position (631,971) 2,588,671 25,915 1,982,615 (474,698) End of Fiscal Year $ 12,455,397 $ 24,956,920 $ 51,015 $ 37,463,332 $ 13,373,214 See Notes to Financial Statements 37 CITY OF RANCHO CUCAMONGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Cash Flows from Operating Activities: Cash received from customers and users Cash paid to suppliers for goods and services Cash paid to employees for services Operating Activities Cash Flows from Non - Capital Financing Activities: Cash transfers in Cash transfers out Amounts paid to other funds Admissions tax received Amounts paid to other governments Net Cash Provided (Used) by Non - Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Business -Type Activities - Enterprise Funds 335,333 10,214,636 - 10,549,969 12,161,767 Governmental $ 120,768 $ 12,230,680 $ 38,308 $ 12,389,756 Activities - Sports Municipal REGIS Internal Complex Utility Connect Total Service Funds $ 433,667 $ 12,296,679 $ 103,612 $ 12,833,958 $ 195,444 (842,237) (7,148,442) (55,182) (8,045,861) (563,543) (1,262,623) (495,529) (212) (1,758,364) net cash provided (used) by operating activities: (1,671,193) 4,652,708 48,218 3,029,733 (368,099) Depreciation 432,321 730,960 - 1,163,281 1,386,340 - - 1,386,340 846,671 - (1,185,360) - (1,185,360) - - - (10,325) (10,325) (119,611) 70,278 - (175,474) 70,278 (Increase) decrease in notes and loans receivable - (1,000) - (1,000) - (Increase) decrease in prepaid expense - (1,321) 500 (821) 1,456,618 (1,186,360) (10,325) 259,933 846,671 (1,575,352) (1,575,352) (901,074) - (499,710) - (57,689) - (1,575,352) - (1,575,352) (1,458,473) 10 125,048 415 125,473 189,715 10 125,048 415 125,473 189,715 (214,565) 2,016,044 38,308 1,839,787 (790,186) Cash and Cash Equivalents at Beginning of Year 335,333 10,214,636 - 10,549,969 12,161,767 Cash and Cash Equivalents at End of Year $ 120,768 $ 12,230,680 $ 38,308 $ 12,389,756 $ 11,371,581 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) $ (2,088,598) $ 3,643,132 $ 25,487 $ 1,580,021 $ (1,453,933) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 432,321 730,960 - 1,163,281 1,078,665 (Increase) decrease in accounts receivable (14,175) 261,136 21,122 268,083 (3,519) (Increase) decrease in net pension asset (43,354) (23,765) - (67,119) (Increase) decrease in deferred outflows from pensions (119,611) (55,863) (175,474) (Increase) decrease in notes and loans receivable 94 - 94 (Increase) decrease in prepaid expense - (1,321) 500 (821) - Increase (decrease) in accounts payable 33,467 (18,392) 1,321 16,396 10,688 Increase (decrease) in accrued liabilities 4,308 (492) (212) 3,604 - Increase (decrease) in deposits payable - 50,440 - 50,440 Increase (decrease) in net pension liability (156,454) (82,504) (238,958) Increase (decrease) in deferred inflows from pensions 280,903 149,283 - 430,186 - Total Adjustments 417,405 1,009,576 22,731 1,449,712 1,085,834 Net Cash Provided (Used) by Operating Activities $ (1,671,193) $ 4,652,708 $ 48,218 $ 3,029,733 $ (368,099) Non -Cash Investing, Capital, and Financing Activities: There was no non -cash investing, capital and financing activities in the current fiscal year. See Notes to Financial Statements 38 CITY OF RANCHO CUCAMONGA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2015 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Developer loans Prepaid bond insurance Due from City Advances to City Land held for resale Restricted assets: Cash and investments with fiscal agents Capital assets: Capital assets, not being depreciated Capital assets, net of accumulated depreciation Total Assets Liabilities: Accounts payable Accrued liabilities Accrued interest Deposits payable Payable to trustee Due to external parties /other agencies Long -term liabilities: Due in one year Due in more than one year Total Liabilities Deferred Inflows of Resources: Deferred charges on refunding Total Deferred Inflows or Resources Net Position: Held in trust for other purposes Total Net Position See Notes to Financial Statements 39 Private - Purpose Trust Fund Successor Agency Agency of the Funds Former RDA $ 21,204,682 $ 23,520,235 188,053 113,947 - 4,233 - - 11,809,648 - 2,308,732 - 305,314 - 3,953,624 - 3,473,832 5,203,793 1,512,338 - 2,703,294 - 40,034,000 $ 26,714,708 89,621,017 $ 74,773 22,239 8,335,437 17,949,088 333,171 $ 26,714,708 5,490,245 9,320,984 341, 924,136 356,735,365 2,324,547 2,324,547 (269,438,895) $ (269,438,895) CITY OF RANCHO CUCAMONGA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2015 Additions: Taxes Interest and change in fair value of investments Total Additions Deductions: Bond issuance costs Administrative expenses Contractual services Interest expense Depreciation expense Contributions to City Payment of prior pass- through agreement Total Deductions Extraordinary gain /(loss) Changes in Net Position Net Position: Beginning of year Net Position - End of the Year See Notes to Financial Statements 40 Private - Purpose Trust Fund Successor Agency of the Former RDA $ 28,759,725 88.924 28,848,649 1,543,036 78,758 1,456, 519 17,395,994 2,516,482 6,778,563 10,094 29,779,446 295,169 (635,628) (268,803,267) $ (269,438,895) CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of Entity The City of Rancho Cucamonga was incorporated on November 30, 1977, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. It is governed by an elected five - member board. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Rancho Cucamonga (the City) and its component units, entities for which the City is considered financially accountable. The inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga is based on the provisions of GASB Statement No. 14 and amended with GASB Statement No. 61. The blended component units discussed below, although legally separate entities, are in substance part of the government operation and so data from these component units has been combined herein. The following criteria were used in the determination of the blended component units: The members of the City Council also act as the governing body of the Rancho Cucamonga Public Improvement Corporation (the Improvement Corporation), the Rancho Cucamonga Fire Protection District (the Fire District), the Rancho Cucamonga Library (the Library) and the Rancho Cucamonga Public Financing Authority (the Financing Authority). 2. The Improvement Corporation, the Fire District, the Library and the Financing Authority are managed by employees of the City. A portion of the City's general overhead costs is allocated to the Fire District and the Library. 3. The City, the Improvement Corporation, the Fire District, the Library and the Financing Authority are financially interdependent. They provide financial benefit /burden to the City. Blended Component Units The Rancho Cucamonga Public Improvement Corporation was incorporated on November 14, 1988, under the Non - Profit Public Benefit Corporation Law of the State of California. The Corporation was established for charitable purposes including rendering financial assistance to the City by financing, acquiring, constructing, improving and leasing public improvements for the benefit of residents of the City and the surrounding area. Separate financial statements are not available for the Improvement Corporation. The Rancho Cucamonga Fire Protection District (formerly, Foothill Fire Protection District) was a special district formed by the County of San Bernardino for the purpose of fire suppression within its boundaries. Effective July 1, 1989, operations of this district were taken over by the City of Rancho Cucamonga. The Fire District still operates as a separate special district; however, now it is under the control of the City of Rancho Cucamonga instead of the County of San Bernardino. Separate financial statements are available for the Fire District. 41 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The Rancho Cucamonga Library was part of the San Bernardino County Library System in which the City of Rancho Cucamonga participated. Effective July 1, 1994, and pursuant to California Code Section 19104, the City withdrew from the County Library System. As of this date, the Library operates as a separate entity under the control of the City. Separate financial statements are not available for the Library. The Rancho Cucamonga Public Financing Authority was established on April 21, 1999, pursuant to Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title I of the California Government Code. Its purpose is to facilitate the financing and the refinancing of construction, expansion, upgrading and improvement of the public capital facilities necessary to support the rehabilitation and construction of residential and economic development within the City. Separate financial statements are not available for the Financing Authority. b. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues 42 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for sales tax revenues which is 90 days. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City's fiduciary funds consist of agency funds and a private purpose trust fund. Agency funds are used to account for situations where the government's role is purely custodial. All assets reported in an agency fund are offset by a liability to the party on whose behalf they are held. Agency funds have no measurement focus. Private purpose trust funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when the government receives cash. The City reports the following major governmental funds: • The General Fund is the general operating fund of the City. All general tax receipts and fee revenue not allocated by law, Council policy or contractual agreement to other funds are accounted for in the General Fund. General Fund expenditures include operations traditionally associated with activities which are not required to be accounted for or paid by another fund. • The Citywide Infrastructure Improvement Fund accounts for capital improvement reimbursements primarily from the San Bernardino Associated Governments (SANBAG). The source of revenue in the fund is primarily from other governments. The funds will be used for general infrastructure improvements throughout the City. • The Housing Successor Agency Fund accounts for the assets of the former Redevelopment Agency's Low and Moderate Income Housing Fund. The source of revenue in the fund is primarily from interest received from the notes and loans receivable. • The Fire District Fund accounts for the revenue and disbursement of funds received by the Rancho Cucamonga Fire Protection District in the course of that agency's fire protection services. The source of revenue in the fund is primarily from property taxes. The City reports the following major proprietary funds: • The Sports Complex Fund accounts for personnel and operating costs directly associated with the operation of the baseball facility, which is the home of the Rancho Cucamonga Quakes. 43 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) • The Municipal Utility Fund accounts for the costs of labor and materials used in the operation, maintenance, construction and consumption of electric services to certain major commercial / industrial developments within the City. • The REGIS Connect Fund accounts for costs associated with the development of the Rancho Cucamonga Enterprise GIS Connect Program which provides services to the City and agency partners that are in need of their expertise. Additionally, the City reports the following fund types: • Internal service funds account for the financial transactions related to repair, replacement and maintenance of City -owned vehicles and equipment and the City's general information systems and telecommunications hardware and software. • Agency funds are custodial in nature and do not involve the measurement of results of operations. The City's agency funds account for deposits held by the City in its fiduciary capacity and assessments received for various purposes which are restricted for payment of principal, interest and penalties on special obligation bonds. • Private - purpose trust funds are used to account for the assets and liabilities of the former Redevelopment Agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former Redevelopment Agency are paid in full and assets have been liquidated. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the government's proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds and of the Internal Service Funds are charges to customers for sales and services. Operating expenses for Enterprises Funds and Internal Service Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non - operating revenues and expenses. 44 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity Cash and Investments All cash and investments, except those that are held by fiscal agents, are held in a City pool. These pooled funds are available upon demand and therefore are considered cash and cash equivalents for purposes of the statement of cash flows. Investments held by fiscal agents with an original maturity of three months or less are also considered cash equivalents and are shown as restricted assets for financial statement presentation purposes. Investments for the City, as well as for its component units, are reported at fair value. The City's policy is generally to hold investments until maturity. Receivables and Payables Activity between funds that are representative of lending /borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to /from other funds" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the non - current portion of interfund loans). All other outstanding balances between funds are reported as "due to /from other funds." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." All trade and property tax receivables are shown net of allowance for uncollectibles. Prepaid Costs Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Land Held for Resale Land purchased for resale is capitalized as inventory at acquisition costs as the City expects to sell this land with no decline in value. Restricted Assets Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Capital Assets Capital assets, which include property, plant, equipment, infrastructure (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful 45 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) life in excess of one year. Such assets are recorded at historical cost when purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. Property, plant, equipment, and infrastructure of the primary government, as well as its component units, are depreciated using the straight -line method over the following estimated useful lives: Assets Years Building improvements 10 -50 Improvements other than buildings 10 -40 Computer equipment and software 3 -15 Equipment and vehicles 3 -20 Furniture and fixtures 3 -20 Infrastructure 10 -75 Deferred outflows /inflows of resources In addition to assets, the statement of financial position and governmental fund balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position of fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense /expenditure) until then. The government reports deferred outflows of resources for pension contributions made after the actuarial measurement date which will be expensed in the following year and for actuarial adjustments due to the proportionate share of the risk pool's total contributions made to the pension liability which will be amortized over the expected average remaining service life time. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and thus will not be recognized as an inflow of resources (revenue) until that time. The government has one item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: taxes and grant revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, 46 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) the government has deferred inflows relating to the net pension liability reported in the government -wide statement of net position. These inflows are the result of the net difference between projected and actual earnings on pension plan investments. This amount is deferred and amortized straight -line over a five year period. The government also reports deferred inflows for deferred charges on debt refunding. Accrued Employee Benefits The City's policy permits employees to accumulate earned but unused vacation and sick pay benefits. The total amount of liability for unused vacation and sick pay benefits is accrued when incurred in the government -wide financial statements. The City utilizes the General Fund and the Fire District Special Revenue Fund in the governmental fund financial statements to account for the short -term portion of its liability. The short -term portion is the unused reimbursable leave still outstanding following an employee's resignation or retirement. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Fire District employees cannot accrue more than one and one -half times their regular annual entitlement. Sick leave is payable when an employee is unable to work because of illness. For City employees, those who terminate their employment after five years of continuous service and have at least 50% of five years sick leave accrued on the books upon termination may be paid for 120 hours of the accrued leave. For Fire District employees, sick leave may be accumulated indefinitely or an employee with ten or more years of service is eligible to convert unused sick leave to vacation in accordance with the following and with any remainder of hours to still remain unused sick time: Upon service retirement of a public safety employee, the option exists to sell back up to one -half of total accumulated sick time or have the time credited toward service in accordance with the Public Retirement Law. All unused sick leave is forfeited upon termination, other than for normal retirement. Long -Term Obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance cost, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses. 47 Accumulated Sick Employee Leave Balance Vacation Type Prior Calendar Year Conversion Rate shift 108 - 144 hours one -half shift 72 - 108 hours one - fourth 40 -hour 90 - 120 hours one -half 40 -hour 60 - 90 hours one - fourth Upon service retirement of a public safety employee, the option exists to sell back up to one -half of total accumulated sick time or have the time credited toward service in accordance with the Public Retirement Law. All unused sick leave is forfeited upon termination, other than for normal retirement. Long -Term Obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance cost, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses. 47 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Balance Fund balance is essentially the difference between the assets, liabilities, and deferred inflows reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts can be spent. • Non - spendable fund balance (inherently non - spendable) • Restricted fund balance (externally enforceable limitations on use) • Committed fund balance (self - imposed limitations on use) • Assigned fund balance (limitation resulting from intended use) • Unassigned fund balance (residual net resources) The City Council, as the City's highest level of decision - making authority, may commit fund balance for specific purposes pursuant to constraints imposed by the adoption of a resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however the amount can be determined subsequently. Fund balance commitments were as follows: Chanaes in Economic Circumstances The City's General Fund balance committed for changes in economic circumstances is established at a goal of a six month reserve, or 50% 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 six month reserve, or 50% of the Fire District's operating budget for the upcoming fiscal year. As defined in the resolution establishing this commitment, the specific uses are listed as 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 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 three 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. 48 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 committed for payment of general liability claims primarily through the use of interest earnings on the reserve but not limited to such in the event of an unfavorable interest rate environment is established at a minimum goal of seven times the City's total yearly SIR for all types of insurance coverage. 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. PERS Rate Stabilization The City's General Fund and Fire District's fund balance committed to offset projected rate increases identified in the respective annual CalPERS actuarial valuation for two fiscal years after the year of financial reporting and identified by the City's actuarial consultant for three more years for a total of five years projection. Booking Fees The City's General Fund balance committed to provide funding for an increase in the booking fees charged to the City by the County of San Bernardino in the event that backfill funding is not provided by the State of California. 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. 49 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Law Enforcement The City's General Fund balance committed for public safety purposes Familv Sports Center Replacement The City's General Fund balance committed for construction of the Family Sports Center Replacement and for the future replacement and repair of major capital assets comprising the new Family Sports Center. This reserve is established at a minimum goal of 105% of the estimated construction cost of the Center. Amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. Pursuant to the City's fund balance policy established by the City Council by resolution, it has delegated the authority to assign amounts to be used for specific purposes to the City Manager or Finance Director for the purpose of reporting these amounts on the annual financial statements. Fund balance flow assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. The City considers restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. Net Position In the governmental -wide financial statements and proprietary fund financial statements, net position is classified as follows: Net Investment in Capital Assets — This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Position — This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Position — This amount is all net position that do not meet the definition of "net investment in capital assets" or "restricted net position." 50 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Net position flow assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted — net position to have been depleted before unrestricted — net position is applied. Property Tax Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one -half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31. Functional Classifications Expenditures of the governmental funds are classified by function. Functional classifications are defined as follows: • General Government includes legislative activities, City Clerk, City Attorney, City Manager as well as management or supportive services across more than one functional area. • Public Safety - Police includes those activities which involve police protection. • Public Safety - Fire Protection includes activities of the Fire District which involve the protection of people and property from fire as well as emergency preparedness. • Public Safety - Animal Center includes those activities which involve animal care and services. • Community Development includes those activities which involve planning and redevelopment, as well as building and safety. • Community Services includes activities which provide recreation, cultural and educational services. • Engineering and Public Works includes all maintenance, engineering and capital improvements which relate to streets, parks, flood control and other public facilities. 51 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) e. Effect of New Accounting Standards During the fiscal year ended June 30, 2015, the City implemented the following Governmental Accounting Standards Board (GASB) standards: GASB Statement No. 68 – Accounting and Financial Reporting for Pensions —an Amendment of GASB Statement No. 27 will improve the decision - usefulness of information in local government employer entity financial reports and will enhance its value for assessing accountability and inter - period equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense. Decision - usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. The requirements of this statement are effective for financial statements for periods beginning after June 15, 2014. GASB Statement No. 71 – Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68. The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a local government employer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. The provisions of GASB Statement No. 71 are effective for financial statements beginning after June 15, 2014. 52 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 11. STEWARDSHIP Note 2: Stewardship, Compliance and Accountability a. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in progress at year -end are completed. They do not constitute expenditures or estimated liabilities. The following funds have encumbrances at June 30, 2015: General Fund $ 2,379,738 Citywide Infrastructure Improvement Fund 238,553 Housing Successor Fund 3,000 Fire District Fund 3,964,214 Other Governmental Funds 3,662,851 b. Deficit Fund Balances or Net Position The following nonmajor funds have a deficit at June 30, 2015: Special Revenue Funds: Pedestrian Grant $ 4,751 Proposition 84 - Park Bond Act 168,087 Energy Efficient & Conservation Block Grant 96 Senior Outreach Grant 5,267 Safe Routes to School Program 233,786 Foothill Blvd. Maintenance 1,413 Public Resources Grant 121 Homeland Security Grant 2005 59,482 Used Oil Recycling Program 209 Capital Projects Funds: Assessment District 86 -2 41,128 The City expects to eliminate these deficits with anticipated future revenues from grants, deferred payments and reimbursements. 53 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2015, cash and investments were reported in the accompanying financial statements as follows: Governmental activities $ 309,370,344 Business -type activities 12,389,756 Fiduciary funds 51,441,048 Total Cash and Investments $ 373,201,148 The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on average daily cash balances. Interest Income from cash and investments with fiscal agents is credited directly to the related fund. Deposits At June 30, 2015, the carrying amount of the City's deposits was $38,833,102 and the bank balance was $39,186,443. The $353,341 difference represents outstanding checks and other reconciling items. The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Investments Under provision of the City's investment policy, and in accordance with the California Government Code, the following investments are authorized: • U.S. Government Agency Securities • Municipals (Warrants, Notes and Bonds) • Certificates of Deposit (or Time Deposits) • Negotiable Certificates of Deposit • FDIC Insured Certificates of Deposits • Banker's Acceptances 54 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 3: Cash and Investments (Continued) • Commercial Paper • Local Agency Investment Fund (State Pool) • Joint Powers Authority (JPA) Investment Pool (short -term) • Deposit of Funds • Repurchase and Investment Agreements • Medium Term Corporate Notes Investments Authorized by Debt Agreements The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer's Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. GASB Statement No. 31 The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. Credit Risk The City's investment policy limits investments in medium -term notes (MTN's) in short -term rating of "AA" or better. As of June 30, 2015, the City invested in Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corp. and Federal National Mortgage Association which were all rated "Aaa" and "AA +" by Moody's and by S &P at June 30, 2015. All securities were investment grade and were legal under State and City law. As of June 30, 2015, the City's investments in external investment pools and money market mutual funds are unrated. Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. As of June 30, 2015, none of the City's deposits or investments were exposed to custodial credit risk. 55 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 3: Cash and Investments (Continued) Concentration of Credit Risk The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments. As of June 30, 2015, in accordance with GASB Statement No. 40, if the City has invested more than 5% of its total investments in any one issuer, it is exposed to credit risk. The following investments are considered exposed to credit risk: Federal Farm Credit Bank 20.44% Federal Home Loan Bank 19.14% Federal Home Loan Mortgage Corporation 11.65% Federal National Mortgage Association 17.59% Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this. Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy establishes a maximum maturity of 180 days for Banker's Acceptances, 270 days for Commercial Paper, one year for Repurchase Agreements and five years for all other individual investments. The only exception to these maturity limits shall be the investment of the gross proceeds of tax - exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2015, the City had the following investments and original maturities: 56 Investment Maturities (in Years) 6 months 6 months to 1 year to 3 Years to or less 1 year 3 years 5 years Fair Value Investments: Local Agency Investment Fund $ 64,579,841 $ $ - $ - $ 64,579,841 Federal Governmental Agencies Federal Farm Credit Bank - - 50,328,743 18,028,906 68,357,649 Federal Home Loan Bank 2,035,600 36,048,199 25,908,555 63,992,354 Federal Home Loan Mortgage Corp. - 10,468,060 28,488,685 38,956,745 Federal National Mortgage Assoc. - - 25,914,020 32,885,490 58,799,510 Corporate Bonds 4,005,840 - 4,526,820 - 8,532,660 Municipal Bonds - 3,493,490 5,649,500 8,949,368 18,092,358 Commercial Paper 4,999,802 - - - 4,999,802 Investments with Fiscal Agents: Money Market Mutual Funds 8,057,127 - - - 8,057,127 $ 81,642,610 $ 5,529,090 $ 132,935,342 $ 114,261,004 $ 334,368,046 56 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 4: Notes and Loans Receivables Notes and loans receivables consist of the following at June 30, 2015: In January 1997, the former Rancho Cucamonga Redevelopment Agency (the Agency) entered into an agreement to loan Villa Pacifica Associates, a California Limited Partnership, up to $3,090,000 to develop senior rental housing for low and moderate income households. The term of the loan is 40 years, with simple interest accruing at 3% per annum on the outstanding principal balance. Payments of principal and interest on the loan are due and payable only when there is available annual cash flow from the development. This payment is 50% of the net annual cash flow. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2015, the outstanding balance amounts to $3,135,969, including accrued interest of $45,969. Accrued interest is offset by deferred revenue. 2. On September 1, 2005, the Agency entered into a loan agreement with Northtown Housing Development Corporation for the purchase of undeveloped real property and the development of an apartment complex (San Sevaine) which will increase the supply of affordable housing to low and moderate income households for a period of ninety -nine (99) years. This loan is a line of credit not -to- exceed $40,700,000 with simple interest accruing at 1 % per annum from the date of disbursement for a term of 55 years (2060), as modified on May 6, 2009, with Amendment #2. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2015, the advances paid against this line of credit amount to $40,457,658 and accrued interest amounts to $2,410,176 for a total of $42,867,834. Accrued interest is offset by deferred revenue. 3. On April 19, 2006, the Agency entered into a loan agreement with LINC - Pepperwood Housing Investors, LP to provide financial assistance from the Low and Moderate Housing Set -aside Fund to purchase and rehabilitate the Pepperwood Apartment Homes, which will increase the supply of affordable housing to low and moderate income households, for not less than ninety -nine (99) years. The loan is in the form of a line of credit not -to- exceed $21,638,113, which includes the rollover of the BLT Partnership No. 1 loan of $2,350,000 and an amendment and increase of $1,288,113 on May 16, 2007. The outstanding principal balance of the loan will accrue simple interest at 2% per annum from the date of disbursement for a term of 56 years (2062). In addition to the extent there are Residual Receipts, the Developer shall pay to the Agency 50% of the Residual Receipts from the preceding year. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2015, advances paid against this line of credit amounts to $21,638,113 and accrued interest amounts to $3,665,736 for a total balance of $25,303,849. Accrued interest is offset by deferred revenue. 4. On September 1, 2005, the Agency entered into a loan agreement with HB Housing Partners, L.P. to provide financial assistance from the Low and Moderate Housing Set -aside Fund to purchase and rehabilitate the Woodhaven Manor Apartments, which will increase the supply of affordable housing to low and moderate income households for not less than ninety -nine (99) years. The loan is in the form of a line of credit not -to- exceed $9,000,000. Simple interest accrues on the advances as follows: 1) 3% per annum from the date of disbursement through and including the date immediately prior to September 21, 2022; and 2) 2% per annum from September 21, 2022 through September 21, 2060. In addition, to the extent there are Residual Receipts, the Developer shall pay to the Agency either 33% or 50% of the Residual Receipts from the preceding year. Upon dissolution of the Agency, the 57 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 4: Notes and Loans Receivables (Continued) loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2015, the advances paid against this line of credit amounted to $9,000,000 and accrued interest amounts to $2,328,121 for a total of $11,328,121. Accrued interest is offset by deferred revenue. 5. On March 9, 2006, the Agency entered into a loan agreement with The Southern California Housing Development Corporation for the acquisition, construction and operation of affordable housing apartments, referred to as the Rancho Verde Expansion project, which will increase the supply of very-low, low and moderate income households. This loan is a line of credit not -to- exceed $6,500,000 with simple interest accruing at 1.5% per annum until June 27, 2035, and 2% per annum thereafter and payable without demand or notice on June 27, 2060. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2015, the advances paid against this line of credit amounted to $6,499,910 and accrued interest amounts to $671,417 for a total of $7,171,327. Accrued interest is offset by deferred revenue. 6. On December 1, 2001, the Agency entered into a residual receipts promissory note loan agreement in the form of a line of credit not -to- exceed $4,000,000 with Malvern Housing Partners, L.P. and Southern California Housing Development Corporation for the acquisition, construction and operation of a 49 -unit senior multifamily apartment project, known as Heritage Pointe Senior Apartments. A portion of the necessary funding was provided from proceeds of a $4,000,000 bond issue by Southern California Housing Development Corporation. Funding provided by the Agency was in the form of semi - annual principal payments toward these bonds from the Agency's low and moderate income housing fund. As advances were made by the Agency, beginning April 1, 2003, these amounts were added to and became the principal balance of this Residual Receipts Note, and are accruing simple interest at 1% per annum from the date of payment through December 2056. Annual payments of principal and accrued interest shall not commence until the operation of the project has generated residual receipts. On December 5, 2007, the residual receipts promissory note was amended and restated in connection with the refunding of the Southern California Housing Development Corporation's bond with the proceed of the Agency Housing Set -Aside Tax Allocation Bonds, Series 2007A and Series 2007B. All residual receipts in excess of fifteen percent of the gross operating income of the project shall be paid to the Agency annually. All principal and accrued interest at the simple interest rate of 1% per annum shall be due and payable in April 2056. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2015, the advances paid against this line of credit amounted to $1,901,300 and accrued interest amounts to $93,587, for a total of $1,994,887. Accrued interest is offset by deferred revenue. 7. On September 1, 2008, the Agency entered into a residual receipts promissory note loan agreement in the form of a line of credit not -to- exceed $27,565,000 with Rancho Workforce Housing, L.P. for the acquisition, construction and development of a 166 -unit rental housing development, including 131 residential units for low and moderate income residents. This loan bears simple interest of 2.386% compounded annually from the date of disbursement, with a term commencing on the date of this agreement and continuing for fifty -five (55) years from the date of the recordation of the Certificate of Completion. Commencing after Borrower's fiscal year first ending 58 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 4: Notes and Loans Receivables (Continued) after the completion of construction of the development, Borrower shall make repayments to the Agency equal to 50% of the Residual Receipts. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2015, the advances paid against this line of credit amounted to $25,868,857, and accrued interest amounts to $3,744,976, for a total of $29,613,833. 8. On September 26, 1994, the Agency entered into a Disposition and Development Agreement (DDA) and loan agreement (as modified on March 22, 1996) for $5,929,181 with North Town Housing Partners for the acquisition of the 88 -unit multifamily rental Villa Del Norte housing project for low and moderate income households. Payments of principal and interest on the loan are due and payable only to the extent that net annual cash flow from the development is available. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. On October 9, 2014, the Loan was modified as a result of a refinancing of the project in order to provide funding for significant rehabilitation improvements to the development. As a result of the refinancing, the term of the Loan and the affordability covenant for the affordable units was extended by 55 years beginning September 1, 2014. The term of the Loan will now terminate on September 1, 2069. The note carries the same interest rate of 3% and the original principal amount of $5,929,181 remains the same. As of June 30, 2015, the outstanding balance amounts to $9,621,681, including accrued interest of $3,692,499. Accrued interest is offset by deferred revenue. 9. On June 6, 2001, the Agency entered into a loan agreement (as updated on December 1, 2002) for $4,700,000 with Northtown Housing Development Corp. for the development of the Olen Jones Senior Apartments. The term of the loan is 55 years, with zero interest accruing for the first 15 years, then accruing simple interest at 3% per annum for the remainder of the term. Payments of principal and interest on the loan are due and payable only to the extent that net annual cash flow from the development is available. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2015, the outstanding balance amounts to $4,303,415 with no interest due. 10. On July 11, 2014 the Agency entered into a promissory note for $42,913 with 7418 Archibald LLC. There is zero interest on the loan and payment of the loan is not due until the property is sold. As of June 30, 2015, the outstanding balance amounts to $42,913 with no interest due. 11. First -time homebuyer loans represents the loans made under the First Time Homebuyer's Program. The payment of the loan is not due until the property is sold. As of June 30, 2015, the outstanding balance amounts to $3,800,198 with no interest due. Total loans receivables for governmental activities at June 30, 2015, including accrued interest of $16,652,482, amounted to 139,184,027. 59 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 5: Capital Assets Governmental activities capital assets for the year ended June 30, 2015, was as follows: * As a result of the dissolution of the former Redevelopment Agency, land in the amount of $4,905,912 was transferred to the City after review by the Oversight Board and approval of the California Department of Finance. Depreciation expense was charged to functions /programs of the primary government as follows: Governmental Activities: General government $ 358,014 Transfers from 491,457 Public safety - fire protection Beginning Engineering and public works 9,622,537 Successor Ending Community services Balance Increases Decreases Transfers Agency Balance Governmental Activities: $ 15,271,203 Capital assets, not being depreciated: Land $ 79,888,230 $ $ $ $ 4,905,912 $ 84,794,142 Right of way 231,931,613 - 231,931,613 Construction -in- progress 51,349,174 12,814,410 (1,009,426) (11,469,088) - 51,685,070 Total Capital Assets, Not Being Depreciated 363,169,017 12,814,410 (1,009,426) (11,469,088) 4,905,912 368,410,825 Capital assets, being depreciated: Building Improvements 107,681,297 - 9,726,330 - 117,407,627 Improvement other than buildings 28,295,745 - 750,232 29,045,977 Equipment and vehicles 29,063,730 1,923,848 (227,532) - 30,760,046 Furniture and fixtures 1,705,574 7,721 (3,246) - 1,710,049 Infrastructure 455,967,199 3,308,718 (853,159) 992,526 459,415,284 Intangible 3,276,888 - - 3,276,888 Total Capital Assets, Being Depreciated 625,990,433 5,240,287 (1,083,937) 11,469,088 641,615,871 Less accumulated depreciation: Building improvements 31,869,603 3,924,397 - 35,794,000 Improvement other than buildings 9,243,266 1,253,798 10,497,064 Equipment and vehicles 24,631,323 1,517,746 (153,047) 25,996,022 Furniture and fixtures 1,602,122 25,846 (3,151) 1,624,817 Infrastructure 199,903,324 8,253,806 (152,031) 208,005,099 Intangible 1,286,717 295,610 1,582,327 Total Accumulated Depreciation 268,536,355 15,271,203 (308,229) - 283,499,329 Total Capital Assets, Being Depreciated, Net 357,454,078 (10,030,916) (775,708) 11,469,088 358,116,542 Governmental Activities Capital Assets, Net $ 720,623,095 $ 2,783,494 _L L785,134 $ - $ 4,905,912 $ 726,527,367 * As a result of the dissolution of the former Redevelopment Agency, land in the amount of $4,905,912 was transferred to the City after review by the Oversight Board and approval of the California Department of Finance. Depreciation expense was charged to functions /programs of the primary government as follows: Governmental Activities: General government $ 358,014 Public safety - police 491,457 Public safety - fire protection 686,039 Engineering and public works 9,622,537 Community development 73,696 Community services 2,960,795 Equipment and Vehicle Replacement Fund 502,648 Computer Equip./Technology Replacement Fund 576,017 Total Governmental Activities $ 15,271,203 .1 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 5: Capital Assets (Continued) Business -type activities capital assets for the year ended June 30, 2015, was as follows: Business -Type Activities: Capital assets, not being depreciated: Land Construction -in- progress Total Capital Assets, Not Being Depreciated Capital assets, being depreciated: Building improvements Improvement other than buildings Equipment and vehicles Furniture and fixtures Infrastructure Intangible Total Capital Assets, Being Depreciated Less accumulated depreciation: Building improvements Improvement other than buildings Equipment and vehicles Furniture and fixtures Infrastructure Intangible Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Business -Type Activities Capital Assets, Net Beginning Ending Balance Increases Decreases Transfers Balance $ 5,451,015 $ - $ - $ - $ 5,451,015 390,637 1,537,050 (99,745) 1,827,942 5,841,652 1,537,050 (99,745) 7,278,957 17,225,973 - 17,225,973 3,797,415 - - 3,797,415 487,945 23,918 - 511,863 117,289 - - 117,289 16,871,496 14,384 - 99,745 16,985,625 25,858 - - 25,858 38,525,976 38,302 - 99,745 38,664,023 9,044,134 432,322 - - 9,476,456 3,797,415 - - - 3,797,415 370,704 3,865 - - 374,569 60,185 43,378 - - 103,563 5,614,933 681,131 - - 6,296,064 22,791 2,585 - - 25,376 18,910,162 1,163,281 - 20,073,443 19,615,814 (1,124,979) 99,745 18,590,580 $ 25,457,466 $ 412,071 $ - $ - $ 25,869,537 Depreciation expense was charged to functions /programs of the primary government as follows: Business -Type Activities: Sports Complex Municipal Utility Total Business -Type Activities 61 $ 432,321 730,960 $ 1,163,281 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2015 was as follows: Due To /From Other Funds Due to /from other funds were the results of routine interfund transactions not cleared prior to the end of the fiscal year and were also made to cover negative cash balances at June 30, 2015. Advances To /From Other Funds Advances from Other Funds Nonmajor Fire Governmental Funds District Funds Total Advances to Other Funds: General $ 3,522,987 $ 300,000 $ 3,822,987 On June 21, 2012, the General Fund advanced $4,556,198 to the Fire District to provide funding for the prepayment of the Fire District's side fund liability with CalPERS. The advance bears interest at 4.5% and is payable in monthly installments of $66,664. The final payment will occur in June 2020. At June 30, 2015, the outstanding balance amounted to $3,522,987. The $300,000 advance from the General Fund to the Park Development Fund was done on March 5, 1996, based upon Council approval. The advance was to provide funding for Phase I of the Northeast Community Park and is to be repaid in the future (no specific date). Interfund Transfers General Funds Fund Transfers in: General Fund Sport Complex Internal Service Funds Nonmajor Funds Total Transfers Out: Nonmajor Municipal Governmental Utility Funds Total $ - $ 1,185,360 $ - $ 1,185,360 1,386,340 - 1,386,340 846,671 846,671 443,394 431,390 874,784 $ 2,676,405 $ 1,185,360 $ 431,390 $ 4,293,155 62 Due to Other Funds Nonmajor REGIS General Governmental Connect Funds Fund Funds Fund Total Due From Other Funds: General Fund $ - $ 1,002,476 $ 17,082 $ 1,019,558 Nonmajor Governmental Funds 1,972 3,154 - 5,126 Total $ 1,972 $ 1,005,630 $ 17,082 $ 1,024,684 Due to /from other funds were the results of routine interfund transactions not cleared prior to the end of the fiscal year and were also made to cover negative cash balances at June 30, 2015. Advances To /From Other Funds Advances from Other Funds Nonmajor Fire Governmental Funds District Funds Total Advances to Other Funds: General $ 3,522,987 $ 300,000 $ 3,822,987 On June 21, 2012, the General Fund advanced $4,556,198 to the Fire District to provide funding for the prepayment of the Fire District's side fund liability with CalPERS. The advance bears interest at 4.5% and is payable in monthly installments of $66,664. The final payment will occur in June 2020. At June 30, 2015, the outstanding balance amounted to $3,522,987. The $300,000 advance from the General Fund to the Park Development Fund was done on March 5, 1996, based upon Council approval. The advance was to provide funding for Phase I of the Northeast Community Park and is to be repaid in the future (no specific date). Interfund Transfers General Funds Fund Transfers in: General Fund Sport Complex Internal Service Funds Nonmajor Funds Total Transfers Out: Nonmajor Municipal Governmental Utility Funds Total $ - $ 1,185,360 $ - $ 1,185,360 1,386,340 - 1,386,340 846,671 846,671 443,394 431,390 874,784 $ 2,676,405 $ 1,185,360 $ 431,390 $ 4,293,155 62 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Interfund Receivable, Payable and Transfers (Continued) The General Fund transferred $1,386,340, $846,671 and $443,394 to the Sports Complex Fund, Internal Service Funds and Nonmajor Funds, respectively, to cover the budgeted amounts. The Municipal Utility transferred $1,185,360 to the General Fund to cover the cost of operations. Note 7: Long -Term Debt Obligations a. Long -Term Debt — Governmental Activities The following is a schedule of changes in governmental activities long -term debt for the fiscal year ended June 30, 2015: Capital Leases: Dell Financial Services Government Capital Corp. Xerox - Internal Service Xerox - Governmental Funds Total Capital Leases Advances from Successor Agency Claims and judgments payable Accrued employee benefits Total Balance Outstanding Due Within July 1, 2014 Additions Repayments June 30, 2015 One Year $ 188,338 $ - $ 67,178 $ 121,160 $ 59,006 1,566,706 - 373,045 1,193,661 385,200 246,822 - 59,487 187,335 64,310 82,024 - 20,104 61,920 21,256 2,083,890 - 519,814 1,564,076 529,772 3,953,624 - - 3,953,624 - 4,179,031 920,145 1,679,370 3,419,806 1,541,748 7,458,928 4,989,511 5,124,493 7,323,946 5,090,630 $ 17,675,473 $ 5,909,656 $ 7,323,677 $ 16,261,452 $ 7,162,150 A description of individual components of long -term debt outstanding as of June 30, 2015, is as follows: Capital Leases Payable On December 19, 2012, the City entered into a capital lease agreement with Dell Financial Services to acquire a Dell Blade Server Enclosure for $313,981. The agreement requires annual payments of $65,469 due February 11t of each year with the final payment due February 2017. The interest rate is fixed at 2.08 %. At June 30, 2015, the outstanding amount due was $121,160. 63 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Long -Term Debt Obligations (Continued) The calculation of the present value of the future lease payments is as follows: Year Ending June 30 2016 $ 65,469 2017 65,469 Subtotal 130,938 Less: Amount representing interest (9,778) Total $ 121,160 On December 27, 2012, the City entered into a capital lease agreement with Governmental Capital Corporation to acquire an Accela Software Technology for $1,956,272. The agreement requires annual payments of $424,092 due July 10t' of each year with the final payment due July 2017. The interest rate is fixed at 3.22 %. At June 30, 2015, the outstanding amount due was $1,193,661. The calculation of the present value of the future lease payments is as follows: Year Ending June 30 2016 $ 424,092 2017 424,092 2018 424,092 Subtotal 1,272,276 Less: Amount representing interest (78,615) Total $ 1,193,661 On December 20, 2012, the City entered into a capital lease agreement with Xerox to acquire multiple Xerox copiers and printers for $426,084. The agreement requires monthly payments of $7,656 starting in May 2013, with the final payment due in April 2018. The interest rate is fixed at 3.00 %. At June 30, 2015, the outstanding amount due was $249,255. The calculation of the present value of the future lease payments is as follows: Year Ending June 30 2016 2017 2018 Subtotal Less: Amount representing interest Total 64 $ 91,872 91,872 76,562 260,306 (11,051) $ 249,255 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Long -Term Debt Obligations (Continued) Advances from the Successor Agency During the formation of Community Facilities District CFD 2000 -01 (District), a number of meetings were held with property owners within the proposed boundaries to discuss participation in the District and benefits to their property. As a result of those meetings, the approved boundary map was modified at the landowners' request to exclude certain properties from the District boundaries. Property owners that were excluded from the District boundaries, but will be receiving direct benefit from the improvements constructed by CFD 2001 -01, were advised that reimbursement would be required when their properties are developed. The Redevelopment Agency advanced the pro -rata share for properties that will receive benefit from the improvements, but are not participating in the District. At June 30, 2015, the advance was $3,953,624. Claims and Judgments Payable The City's liability regarding self insurance is described in Note 12 of the Notes to Financial Statements. The liability will be paid as it becomes due by the General Fund and the Fire District Fund. Accrued Employee Benefits The City's policies relating to compensated absences are described in Note 1 of the Notes to Financial Statements. The liability will be paid in future years by the General Fund and the Fire District Fund as it becomes due. Note 8: Other Special Obligations The following issues of Residential Mortgage Revenue Bonds, Special Assessment District Bonds, and Community Facility District Bonds are not reflected in the Statement of Net Position because these are special obligations payable solely from and secured by specific revenue sources described in the resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the State of California or any political subdivision thereof, is pledged for the payment of these bonds. 65 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 8: Other Special Obligations (Continued) The outstanding amounts at June 30, 2015 were as follows: Subsequent to June 30, 2015, the Community Facilities District Nos. 2000 -01, 2000 -02, 2001 -01 A, 2001 -01 B, 2006 -01 and 2006 -02 were refinanced. IV. OTHER INFORMATION Note 9: Pension Plan Obligations a. City Miscellaneous Plan 1. General Information about the Pension Plan Plan Description The City of Rancho Cucamonga contributes to the California Public Employees Retirement System (PERS), an agent multiple - employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost -of- living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS' annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at .. Outstanding Amount at June 30, 2015 City of Rancho Cucamonga: Community Facilities District No. 2000 -01 $ 516,000 Community Facilities District No. 2000 -02 4,566,000 Community Facilities District No. 2000 -03 7,276,000 Community Facilities District No. 2001 -01 Series A 8,072,000 Community Facilities District No. 2001 -01 Series B 741,000 Community Facilities District No. 2003 -01 Series A 13,960,000 Community Facilities District No. 2003 -01 Series B 2,722,000 Community Facilities District No. 2004 -01 33,606,000 Community Facilities District No. 2006 -01 5,025,000 Community Facilities District No. 2006 -02 2,565,000 Rancho Cucamonga Redevelopment Agency: Multi - Family Housing Revenue Bond: Series 1997A 2,385,432 Total $ 81,434,432 Subsequent to June 30, 2015, the Community Facilities District Nos. 2000 -01, 2000 -02, 2001 -01 A, 2001 -01 B, 2006 -01 and 2006 -02 were refinanced. IV. OTHER INFORMATION Note 9: Pension Plan Obligations a. City Miscellaneous Plan 1. General Information about the Pension Plan Plan Description The City of Rancho Cucamonga contributes to the California Public Employees Retirement System (PERS), an agent multiple - employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost -of- living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS' annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at .. CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. Miscellaneous Tier 1 , Tier 2* Tier 3 PEPRA * Plan is closed to new entrants Employees Covered January 1, 2013 and after 2.0% @ 62 5 years service monthly for life minimum 52 yrs 1.000% - 2.500 %, 52 yrs - 67+ yrs, respectively 6.500% 13.465% As of the valuation date of June 30, 2013, the following employees were covered by the benefit terms of the Plan: Description Active members Transferred members Terminated members Retired members and beneficiaries Total Contribution Description Number of Members 468 160 211 195 1,034 Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 67 Prior to September 1, 2010 July 4, 2011 Hire date September 1, 2010 but prior to and after July 3, 2011 Benefit formula 2.5% @ 55 2.5% @ 55 2.0% @ 55 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 50 yrs Monthly benefits, as a % of 2.000% - 2.500 %, 2.000% - 2.500 %, 1.426% - 2.418 %, eligible compensation 50 yrs - 55+ yrs, 50 yrs - 55+ yrs, 50 yrs - 63+ yrs, respectively respectively respectively Required employee 8.000% 8.000 /0 0 7.000 /o 0 contribution rates Required employer 13.465% 13.465% 13.465% contribution rates * Plan is closed to new entrants Employees Covered January 1, 2013 and after 2.0% @ 62 5 years service monthly for life minimum 52 yrs 1.000% - 2.500 %, 52 yrs - 67+ yrs, respectively 6.500% 13.465% As of the valuation date of June 30, 2013, the following employees were covered by the benefit terms of the Plan: Description Active members Transferred members Terminated members Retired members and beneficiaries Total Contribution Description Number of Members 468 160 211 195 1,034 Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 67 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) For the year ended June 30, 2015, the employer contributions recognized as a reduction to the net position liability for all the Plan was $3,520,721. 2. Net Pension Liability The City's net pension liability is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2014, using an annual actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2013 total pension liability. The June 30, 2013 and the June 30, 2014 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table (1) Post Retirement Benefit Increase Entry Age Normal in accordance with the requirements of GASB Statement No. 68 7.50% 2.75% Varies by Entry Age and Service 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Derived using CaIPERS' Membership Data for all Funds Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1) The mortality table used was developed based on CaIPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report. All other actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS' website under Forms and Publications. Discount Rate The discount rate used to measure the total pension liability was 7.50 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. .: CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long -term expected discount rate of 7.50 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at CalPERS' website under the GASB 68 section. According to Paragraph 30 of Statement 68, the long -term discount rate should be determined without reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. CalPERS determined this difference was deemed immaterial to the Agent Multiple - Employer Defined Benefit Pension Plan. More information can be found on the CalPERS website. CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2017 -18 fiscal year. CalPERS will continue to check the materiality of the difference in calculation until such time as they have changed their methodology. The long -term expected rate of return on pension plan investments was determined using a building -block method in which best - estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long -term expected rate of return, CalPERS took into account both short -term and long -term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short -term (first 10 years) and the long -term (11 -60 years) using a building -block approach. Using the expected nominal returns for both short -term and long -term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short -term and long -term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long -term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. .• CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) New Strategic Asset Class Allocation Global Equity 47.0% Global Fixed Income 19.0 Inflation Sensitive 6.0 Private Equity 12.0 Real Estate 11.0 Infrastructure and Forestland 3.0 Liquidity 2.0 (1) An expected inflation of 2.5% used for this period (2) An expected inflation of 3.0% used for this period 3. Changes in the Net Pension Liability Real Return Real Return Years 1 - 10 (1) Years 11+ (2) 5.25% 5.71% 0.99 2.43 0.45 3.36 6.83 6.95 4.50 5.13 4.50 5.09 (0.55) (1.05) The following table shows the changes in net pension liability recognized over the measurement period. Balance at: 6/30/2013 (Valuation Date) (1) Changes Recognized for the Measurement Period: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference between Expected and Actual Experience Changes of Assumptions Contributions from the Employer Contributions from Employees Net Investment Income (2) Benefit Payments including Refunds of Employee Contributions Net Changes During 2013 -14 Balance at: 6/30/2014 (Measurement Date) (1) Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability /(Assets) (a) (b) (c)= (a) -(b) $ 165,224,012 $ 124,692,088 $ 40,531,924 4,661,973 - 4,661,973 12,370,506 - 12,370,506 - 3,520,721 (3,520,721) - 2,156,312 (2,156,312) - 21,772,350 (21,772,350) (5,229,846) (5,229,846) - 11,802,633 22,219,537 (10,416,904) $ 177,026,645 $ 146,911,625 $ 30,115,020 (1) The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary self- insurance and OPEB expense. This may differ from the plan assets reported in the funding actuarial valuation report (2) Net of administrative expenses. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.50 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower (6.50 percent) or 1 percentage -point higher (8.50 percent) than the current rate: 70 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) Plan's Net Pension Liability /(Assets) Discount Rate - 1 % Current Discount Rate Discount Rate +1 % (6.50°/x) (7.5 %) (8.5 %) 55,174,746 $ 30,115,020 $ 9,443,661 Pension Plan Fiduciary Net Position The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self- insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves. 4. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2013), the net pension liability was $40,531,924. For the measurement period ending June 30, 2014 (the measurement date), the City incurred a pension expense /(income) of $3,048,251 for the Plan. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the employer. As of June 30, 2015, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Deferred Inflows of Resources Resources Current year contributions that occurred after the measurement date of June 30, 2014 $ 3,377,402 $ - Net Difference between Projected and Actual Earnings on Pension Plan Investments Total - 9,944,433 $ 3,377,402 $ 9,944,433 $3,377,402 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: 71 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) Measurement Deferred Period ended Outflows /(Inflows) of June 30: Resources 2015 $ (2,486,108) 2016 (2,486,108) 2017 (2,486,108) 2018 (2,486,109) b. Fire District Miscellaneous and Safety Plans 1. General Information about the Pension Plan Plan Descriptions All qualified permanent and probationary Fire District's employees are eligible to participate in the District's Safety Employee Pension Plan or Miscellaneous Employee Pension Plan, both cost - sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. 72 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) Miscellaneous cost - sharing plans Safety cost - sharing plans Tier 1 * Tier 2 * PEPRA Prior to July 9, 2011 January 1, 2013 Hire date July 9, 2011 but prior to and after January 1, 2013 Benefit formula 2.5% @ 55 2% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs Monthly benefits, as a % of 2.000% - 2.500 %, 1.426% - 2.418 %, 1.000% - 2.500 %, eligible compensation 50 yrs - 55+ yrs, 50 yrs - 63+ yrs, 52 yrs - 67+ yrs, respectively respectively respectively Required employee 8.000% 7.000% 6.250% contribution rates .500 Required employer 15.701% 11.032% 6.250 /o ° contribution rates Safety cost - sharing plans Contribution Description Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 73 Tier 1 * Tier 2 * PEPRA Prior to July 9, 2011 January 1, 2013 Hire date July 9, 2011 but prior to and after January 1, 2013 Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 50 yrs Monthly benefits, as a % of 2.400% - 3.000 %, 2.000% - 2.700 %, eligible compensation o 3.000%, 50+ yrs 50 yrs - 55+ yrs, 50 yrs - 57+ yrs, respectively respectively Required employee 9.000% 9.000 /0 0 11.500% /o contribution rates .500 Required employer 27.849% 21.367% 11.500% contribution rates * Plan is closed to new entrants Contribution Description Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 73 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) For the year ended June 30, 2015, the employer contributions recognized as a reduction to the net position liability for all cost - sharing plans were $2,766,063. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2015, the Fire District reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows: Miscellaneous Tier 1 Miscellaneous Tier 2 Miscellaneous PEPRA Safety Tier 1 Safety Tier 2 Safety PEPRA Total Net Pension Liability Proportionate Share of Net Pension Liability $ 1,341,679 6,509 6 19,354,250 16,928 2,688 $ 20,722,060 The Fire District's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2014, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2013, rolled forward to June 30, 2014, using standard update procedures. The Fire District's proportion of the net pension liability was based on a projection of the Fire District's long -term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The Fire District's proportionate share of the net pension liability for each Plan as of June 30, 2013 and 2014, was as follows: Miscellaneous Cost - Sharing Plans Safety Cost - Sharing Plans Tier 1 Tier 2 PEPRA Proportion - June 30, 2013 0.53567% 0.00047% 0.00007% Proportion - June 30, 2014 0.51598% 0.00045% 0.00007% Change - Increase (Decrease) - 0.01969% - 0.00002% 0.00000% For the year ended June 30, 2015, the Fire District recognized pension expense of $2,507,288. At June 30, 2015, the Fire District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 74 Tier 1 Tier 2 PEPRA Proportion - June 30, 2013 0.05595% 0.00027% 0.00000% Proportion - June 30, 2014 0.05429% 0.00026% 0.00000% Change - Increase (Decrease) - 0.00166% -0.00001% 0.00000% Safety Cost - Sharing Plans Tier 1 Tier 2 PEPRA Proportion - June 30, 2013 0.53567% 0.00047% 0.00007% Proportion - June 30, 2014 0.51598% 0.00045% 0.00007% Change - Increase (Decrease) - 0.01969% - 0.00002% 0.00000% For the year ended June 30, 2015, the Fire District recognized pension expense of $2,507,288. At June 30, 2015, the Fire District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 74 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) Deferred Outflows Deferred Inflows of Resources of Resources Net Difference between Projected and Actual Earnings on Pension Plan Investments $ - Adjustment due to Difference in Proportions - Differences between the employer's contributions and the employer's proportionate share of contributions 184,333 Fire District contributions subsequent to the measurement date 3,038,200 Total $ 3,222,533 $ 6,302,665 397,157 $ 6,699,822 $3,038,200 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Deferred Period ended Outflows /(Inflows) June 30: of Resources 2015 $ (1,678,289) 2016 (1,678,289) 2017 (1,649,920) 2018 (1,536,444) 2019 27,453 Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2013 total pension liability. The June 30, 2013 and the June 30, 2014 total pension liabilities were based on the following actuarial methods and assumptions: 75 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table (1) Post Retirement Benefit Increase Entry Age Normal in accordance with the requirements of GASB Statement No. 68 7.50% 2.75% Varies by Entry Age and Service 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Derived using CalPERS' Membership Data for all Funds Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1) The mortality table used was developed based on CalPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report. All other actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS' website under Forms and Publications. Discount Rate The discount rate used to measure the total pension liability was 7.50 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.50 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at CalPERS' website under the GASB 68 section. According to Paragraph 30 of Statement 68, the long -term discount rate should be determined without reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. CalPERS determined this difference was deemed immaterial to the Cost - Sharing Multiple - Employer Defined Benefit Pension Plan. More information can be found on the CalPERS website. 76 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) CaIPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CaIPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2017 -18 fiscal year. CalPERS will continue to check the materiality of the difference in calculation until such time as they have changed their methodology. The long -term expected rate of return on pension plan investments was determined using a building -block method in which best - estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long -term expected rate of return, CalPERS took into account both short -term and long -term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short -term (first 10 years) and the long -term (11 -60 years) using a building -block approach. Using the expected nominal returns for both short -term and long -term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short -term and long -term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long -term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. (1) An expected inflation of 2.5% used for this period (2) An expected inflation of 3.0% used for this period 77 New Strategic Real Return Real Return Asset Class Allocation Years 1 - 10 (1) Years 11+ (2) Global Equity 47.0% 5.25% 5.71% Global Fixed Income 19.0 0.99 2.43 Inflation Sensitive 6.0 0.45 3.36 Private Equity 12.0 6.83 6.95 Real Estate 11.0 4.50 5.13 Infrastructure and Forestland 3.0 4.50 5.09 Liquidity 2.0 (0.55) (1.05) (1) An expected inflation of 2.5% used for this period (2) An expected inflation of 3.0% used for this period 77 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Pension Plan Obligations (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability /(asset) of the Plan as of the measurement date, calculated using the discount rate of 7.50 percent, as well as what the net pension liability /(asset) would be if it were calculated using a discount rate that is 1 percentage -point lower (6.50 percent) or 1 percentage -point higher (8.50 percent) than the current rate: Miscellaneous Cost - Sharing Plans Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information. Note 10: PARS Retirement Enhancement Plan 1. General Information About the Plan Plan Description The City of Rancho Cucamonga sponsors the PARS Retirement Enhancement Plan, an agent multiple - employer defined benefit pension plan. The Plan provides pension benefits to miscellaneous members (Tier 1) and city council members (Tier 2). Benefits are equal to a percentage of highest pay multiplied by years of service, with the percentage varying by retirement age based on a 3% at 60 target offset by CalPERS 2.5% at 55 formula. Sample rates are as follows: Age 55 56 57 58 59 60+ Tier 1 0.000% 0.100 0.200 0.300 0.400 0.500 The City and the Fire District have the right to amend, modify or terminate the plan at any time. Separate audited financial statements are not prepared. 78 Discount Rate - 1% Current Discount Discount Rate +1% Plan 6.50% 7.50% 8.50% Miscellaneous Tier 1 $ 2,390,458 $ 1,341,679 $ 471,293 Miscellaneous Tier 2 11,598 6,509 2,286 Miscellaneous PEPRA 11 6 2 Safety Tier 1 33,306,158 19,354,250 7,858,480 Safety Tier 2 29,132 16,928 6,873 Safety Tier PEPRA 4,622 2,688 1,091 TOTAL: $ 35,741,979 $ 20,722,060 $ 8,340,025 Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information. Note 10: PARS Retirement Enhancement Plan 1. General Information About the Plan Plan Description The City of Rancho Cucamonga sponsors the PARS Retirement Enhancement Plan, an agent multiple - employer defined benefit pension plan. The Plan provides pension benefits to miscellaneous members (Tier 1) and city council members (Tier 2). Benefits are equal to a percentage of highest pay multiplied by years of service, with the percentage varying by retirement age based on a 3% at 60 target offset by CalPERS 2.5% at 55 formula. Sample rates are as follows: Age 55 56 57 58 59 60+ Tier 1 0.000% 0.100 0.200 0.300 0.400 0.500 The City and the Fire District have the right to amend, modify or terminate the plan at any time. Separate audited financial statements are not prepared. 78 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 10: PARS Retirement Enhancement Plan (Continued) Benefits are increased by a 2% annual cost of living adjustment after retirement. There are no employee contributions for either tier. Benefits Provided PARS provides supplemental retirement benefits to eligible employees of the City. Employees are eligible to receive benefits under the plan if they meet the following requirements: miscellaneous employee of the City or City Council on or after December 1, 2002, at least 56 years of age, has completed 10 or more years of full -time continuous employment at the City has terminated employment with the City and concurrently retired under CalPERS if an active CalPERS member and has applied for benefits under the plan. Benefits shall be in an amount equal to one - twelfth of the product of the number of full and partial years of full -time continuous employment with the City completed as of the Member's retirement times the Member's final pay, times the PARS benefit factor. The total combined CalPERS age factor and PARS benefit factor at retirement may not exceed three percent. Hire date on or after December 1, 2012 Benefit formula one - twelfth of the product of the number of full and partial years of full -time continuous employment with the City completed as of the Member's retirement times the Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates *This plan is closed to new entrants Employees Covered Member's final pay, times the PARS benefit factor 10 years service monthly for life minimum 56 yrs N/A - not based on % of eligible compensation 0.000% 1.900% As of the valuation date of June 30, 2014, the following employees were covered by the benefit terms of the Plan: Description Active members Retired members Total 79 Number of Members 336 68 404 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 10: PARS Retirement Enhancement Plan (Continued) Contribution Description The total plan contributions are determined through the PARS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Due to the City's pre- funding of its pension liability with PARS, the City's Plan had a net pension asset as of the June 30, 2014 actuarial valuation which positively impacted the actuarially determined rate. For the year ended June 30, 2015, the employer contributions recognized as an increase to the net pension asset was $497,000. 2. Net Pension Liability The City's net pension liability for each Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2014, using an annual actuarial valuation as of June 30, 2014. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2014 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table Post Retirement Benefit Increase Entry Age, Level Percent of Payroll 6.25% 3.00% Aggregate - 3.25% 6.25% Net of Pension Plan Investment and Administrative Expenses; rounded to the nearest 0.25% CalPERS 1997 -2011 Experience Study Base All other actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS' website under Forms and Publications. Discount Rate The discount rate used to measure the total pension liability was 6.25 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, PARS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 0 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 10: PARS Retirement Enhancement Plan (Continued) 6.25 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long -term expected discount rate of 6.25 percent is applied to all plans in PARS. The stress test results are presented in the Discount Rate Crossover Test in the actuarial report. According to Paragraph 30 of Statement 68, the long -term discount rate should be determined without reduction for pension plan administrative expense. The 6.25 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 30 basis points. An investment return excluding administrative expenses would have been 6.55 percent. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. This difference was deemed immaterial to the Agent Multiple - Employer Defined Benefit Pension Plan. The long -term expected rate of return on pension plan investments was determined using PARS moderate allocation at the 55% level (expected returns, net of pension plan investment expense) are developed for each major asset class. In determining the long -term expected rate of return, PARS took into account both short -term and long -term market return expectations. The expected rate of return was then set equivalent to the single equivalent rate calculated above and down to the nearest one quarter of one percent. The table below reflects long -term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. 81 New Strategic Asset Class Allocation Real Return Total Fixed 45.0% 1.55% Cash 5.0 0.45 Global Equities 50.0 5.35 81 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 10: PARS Retirement Enhancement Plan (Continued) 3. Changes in the Net Pension Liability (Asset) The following table shows the changes in net pension liability /(asset) recognized over the measurement period. Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability /(Assets) (a) (b) (c)= (a) -(b) Balance at: 6/30/2013 $ 20,790,000 $ 24,536,000 $ (3,746,000) Changes Recognized for the Measurement Period: Service Cost 719,000 - 719,000 Interest on the Total Pension Liability 1,329,000 - 1,329,000 Changes of Benefit Terms - - - Difference between Expected and Actual Experience Changes of Assumptions Contributions from the Employer Contributions from Employees Net Investment Income Benefit Payments including Refunds of Employee Contributions Administrative Expenses Net Changes During 2013 -14 Balance at: 6/30/2014 (Measurement Date) 497,000 (497,000) 3,177,000 (3,177,000) (495,000) (495,000) - 33,000 - 33,000 1,586,000 3,179,000 (1,593,000) $ 22,376,000 $ 27,715,000 $ (5,339,000) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.25 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower (5.25 percent) or 1 percentage -point higher (7.25 percent) than the current rate: Discount Rate - 1 % Current Discount Discount Rate +1 % (5.25 %) Rate (6.25 %) (7.25 %) Plan's Net Pension $ (1,862,000) $ (5,339,000) $ (8,189,000) Liability /(Assets) Pension Plan Fiduciary Net Position The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, PARS must keep items such as deficiency reserves, fiduciary self- insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves. 82 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 10: PARS Retirement Enhancement Plan (Continued) 4. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2013), the net pension asset was $3,746,000. For the measurement period ending June 30, 2014 (the measurement date), the City incurred a pension expense /(income) of $219,000 for the Plan. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the employer. As of June 30, 2015, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Deferred Inflows of Resources Resources Current year contributions that occurred after the measurement date of June 30, 2014 $ 447,119 $ Net Difference between Projected and Actual Earnings on Pension Plan Investments - 1,315,000 Total $ 447,119 $ 1,315,000 $447,119 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Deferred Year ended Outfowst(inflows) of June 30: Resources 2016 $ (329,000) 2017 (329, 000) 2018 (329, 000) 2019 (328, 000) Note 11: Other Post - Employment Benefits Plan Description The City does not provide post - employment benefits; however, medical coverage is provided to Fire District personnel and their dependents upon retirement under the Rancho Cucamonga Fire Protection District Memorandum of Understanding. The Fire District provides other post - employment benefits (OPEB) through the California Employers' Retiree Benefit Trust (CERBT), an agent multiple - employer defined benefit healthcare plan administered by the California Public Employees' Retirement System (CaIPERS). For Tier 1 employees, the Fire District pays 100% of the medical insurance 83 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 11: Other Post - Employment Benefits (Continued) premium for the participant and their family. For Tier 2 employees, the Fire District contributes a predetermined monthly maximum of $97 -$101 for each eligible retiree towards health insurance. These benefits are provided per contract between the Fire District and the employee associations. Separate financial statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North 400 Q Street, Sacramento, California 95814 or by visiting the CaIPERS website at www.calpers.ca.gov. Funding Policy The contribution requirements of plan members and the Fire District are established and may be amended by the Fire District, City Council and /or the employee associations. Currently, contributions are not required from plan members. During fiscal year 2014 -2015, the City paid $748,659 in premiums for retiree insurance and was reimbursed $608,659 from the CERBT. The following table shows the components of the Fire District's annual OPEB cost for the year, the amount actually contributed to the plan, and the change in the net OPEB obligation (asset): Annual required contribution (ARC) $ 386,000 Interest in net OPEB asset (1,052,290) Adjustment to ARC 1,573,204 Annual OPEB cost 906,914 Contributions: Contribution made 748,659 Implicit rate subsidy benefit payments 246,000 Reimbursement of contributions made (608,659) Decrease /(Increase) in net OPEB asset 520,914 Net OPEB obligation / (asset) June 30, 2014 (16,189,075) Net OPEB obligation / (asset) June 30, 2015 $ (15,668,161) The contribution rate of 3.9% is based on the ARC of $386,000, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis is projected to cover the annual normal cost and the amortization of unfunded actuarial liabilities (or funding excess) over a thirty year period. Due to the Fire District's prefunding of its plan liability through the CERBT, the Fire District's plan has a net OPEB asset as of the June 30, 2013 actuarial valuation which positively impact the actuarially determined contribution rate. Annual OPEB Costs and Net OPEB Obligation (Asset) The City implemented the provision of GASB Statement 45 in fiscal year ended June 30, 2009. Information on the annual OPEB cost, percentage of annual OPEB cost contributed, and net OPEB obligation /(asset) is available for the fiscal year ended June 30, 2009, and thereafter. 84 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 11: Other Post - Employment Benefits (Continued) Three Year Trend Information - OPEB Fiscal Annual Actuarial Actuarial Actuarial Actuarial Percentage of Valuation Value of Accrued Accrued Net OPEB Year OPEB Actual Annual OPEB Reimbursements Obligation End Cost Contribution* Cost Contributed from CERBT (Asset) 6/30/2013 $ 725,086 $ 924,590 127.5% $ 421,589 $ (16,447,210) 6/30/2014 757,135 834,616 110.2% 335,316 (16,189,075) 6/30/2015 660,914 994,659 150.5% 608,659 (15,668,161) Including implied rate subsidy Funded Status and Funding Progress Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the Fire District are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress below presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Schedule of Funding Progress Other Post - Employment Benefits (Amounts in Thousands) Unfunded UAAL as a Actuarial Actuarial Actuarial Actuarial Percent of Valuation Value of Accrued Accrued Funded Covered Covered Date Assets Liability Liability Ratio Payroll Payroll 6/30/2009 $ 2,798 $ 17,561 $ 14,763 15.9% $ 8,021 184.1% 6/30/2011 21,547 22,544 997 95.6% 8,601 11.6% 6/30/2013 23,854 23,634 (220) 100.9% 9,589 -2.3% Actuarial valuation is performed every other year. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in the actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the June 30, 2013, actuarial valuation, the entry age normal level percentage of pay actuarial cost method was used. The actuarial assumptions include a 6.50% discount rate of return, which is a blended rate of the expected long -term investment return on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date, an inflation rate of 3 %, projected salary increase of 85 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 11: Other Post - Employment Benefits (Continued) 3.25% and annual healthcare cost trend rate of between 4.5% and 9.4 %. The actuarial value of assets is set equal to the reported market value of assets. The UAAL is being amortized as a level percentage of payroll over a 25 -year fixed (closed) period for initial UAAL from June 30, 2015, (fresh start). The number of active and retiree participants is 111 and 54 respectively. Note 12: Summary Disclosure of Self- Insurance Contingencies City Disclosure of Self- Insurance Contingencies The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the Member Entity obtains insurance coverage. The City is a member of the Public Agency Risk Sharing Authority of California - PARSAC (Authority), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers' compensation, and property claims. Under the program, the City has a $500,000 retention limit for liability, which is similar to a deductible, with the Authority being responsible for losses above that amount up to $1,000,000. The Authority carries an excess commercial liability policy of $35,000,000 in excess of its $1,000,000 retention limit to cover losses through affiliated risk management authorities. The Authority also provides one billion dollars aggregate per occurrence property coverage to its members with such coverage provided by purchased insurance. Liabilities of the City are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. The City has a $300,000 retention limit for workers compensation. The Authority covers workers' compensation claims in excess of the $300,000 retention limit up to $500,000. The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The City pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority's operating results. Financial statements of the Public Agency Risk Sharing Authority of California ( PARSAC) may be obtained from its administrative office located at 1525 Response Road, Suite One, Sacramento, California, 95815; www.parsac.org or by calling (916) 927 -7727. Fire District Disclosure of Self Insurance Contingencies For general liability, the Fire District is covered through the Fire Agencies Insurance Risk Authority (FAIRA) on each general liability claim up to $1,000,000. The liability deductible is $0, except $5,000 for Management Liability claims $1,000 for business auto claims, $3,000 for emergency vehicle and $5,000 for property claims. The insurance coverage in excess of the $1,000,000, up to $10,000,000, is provided by American Alternative Insurance Corporation. :. CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 12: Summary Disclosure of Self- Insurance Contingencies (Continued) Effective, June 29, 1989, the Fire District became a member of FAIRA, a public entity risk pool currently operating as a common risk management and insurance program for 99 California Fire Protection Districts. The Fire District pays an annual premium to the pool for its excess general liability insurance coverage. The agreement for information of FAIRA provides that the pool will be self- sustaining through member premiums. FAIRA publishes its own financial report for the year ended June 30, 2015, which can be obtained from the Fire Agencies Insurance Risk Authority, Novato, California. For workers compensation, the Fire District is self- insured for the first $300,000 on each workers compensation claim as a member of the Public Agency Self- Insurance System (PASTS) of San Bernardino County. The insurance coverage in excess of the self- insured amount is provided by the California State Association of Counties Excess Insurance Authority (CSAC -EIA). Effective, July 1, 2002, the Fire District became a member of CSAC -EIA, a public entity risk pool currently operating as a common risk management and insurance program for 145 California cities, counties, school districts, municipal services organizations, and joint power authorities. The Fire District pays an annual premium to the pool for its excess workers compensation insurance coverage. The agreement for information of the CSAC -EIA provides that the pool will be self- sustaining through member premiums. CSAC -EIA publishes its own financial report for the year ended June 30, 2015, which can be obtained from the California State Association of Counties Excess Insurance Authority, Moraga, California. Workers compensation claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The Fire District funds all claims payable, including those incurred, but not reported, in the yearly deposit it pays to PASIS. Effective July 1, 2015, the District became a member of PARSAC for its workers compensation insurance. See additional information regarding this change in insurance coverage subsequent to year end in Note 17. There have been no significant changes in the City's insurance coverage from the prior year. During the past three fiscal years, the amount of settlements has not exceeded the amount of insurance coverage. The City and the Fire District are involved in litigation arising in the normal course of business. Although the legal responsibility and financial impact with respect to such litigation cannot be presently ascertained, based on information from the service agent and others involved with the administration of the programs, the City believes that the self- insurance commitment of $7,583,333 is adequate to cover such losses. 87 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 12: Summary Disclosure of Self- Insurance Contingencies (Continued) The following is a summary of the changes in the claims liability over the past two fiscal years for the City and the Fire District combined: Current Year Claims Beginning and Changes in Claim Ending Fiscal Year Balance Estimates Payments Balance 2013 -2014 $ 3,762,682 $ 2,297,600 $ (1,881,251) $ 4,179,031 2014 -2015 4,179,031 920,145 (1,679,370) 3,419,806 Note 13: Commitments and Contingencies The following schedule summarizes the major contractual commitments by funds as of June 30, 2015: :: Expenditures Contract to date as of Remaining Fund / Project Name Amount June 30, 2015 Commitments Air Quality Improvement CNG Fuel Station Expansion $ 307,475 $ 199,102 $ 108,373 Transportation Traffic Management Center Upgrade 152,265 14,858 137,407 Wilson Avenue Extension 4,403,582 3,971,725 431,857 Base Line Road @ 1 -15 Freeway Interchange 750,129 458,899 291,230 Measure I Wilson Avenue Extension 307,000 - 307,000 8th Street, 6th Street, and Baker Avenue Pavement Rehabilitation 569,595 - 569,595 Local Street Pavement Rehabilitation - Slurry 301,988 - 301,988 Proposition 42 - Traffic Congestion Mitigation Local Street Pavement Rehabilitation -Slurry 109,000 - 109,000 Proposition 84 - Park Bond Act Southwest Park Design 351,564 177,067 174,497 Municipal Utility Arrow Route Electric Distribution Line Extension 1,973,645 1,826,062 147,583 Haven Avenue Electric Distribution Line Extension - Jersey Blvd. to Sixth St. 496,830 - 496,830 Equipment and Vehicle Replacement CNG Fuel Station Expansion 316,185 199,102 117,083 Fire District Fire Protection District All Risk Training Facility 2,895,750 1,031,122 1,864,628 :: CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ( "the Bill ") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Rancho Cucamonga that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 11, 2012, the City elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12 -001. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City's position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. a. Cash and investments Cash and investments reported in the accompanying financial statements consisted of the following: Cash and investments pooled with the City $ 23,520,235 Cash and investments with fiscal agent 1,512,338 $ 25,032,573 :• CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) b. Loans Receivable Notes and loans receivables consist of the following at June 30, 2015: On July 21, 2003, the Agency entered into a Disposition and Developer Agreement with Victoria Gardens, LLC. The Agency conveyed 147 acres generally located north of Foothill Boulevard, west of the 1 -15 Freeway and east of Day Creek Road in the City of Rancho Cucamonga in order for the Developer to construct an open air mixed use complex. The Agency conveyed the site to the Developer upon the execution of a promissory note to pay a cumulative sum of $13,000,000 to the Agency over a term of thirty (30) years. The note stipulates the following payment structure: (1) the Developer shall make annual payments to the Agency equal to the amount required to amortize the excess return at the Agency's cost of funds; (2) the Developer shall pay the Agency fifteen percent (15 %) of the difference between the net sale proceeds and the higher of the project cost, or the initial gross proceeds of any loan; and (3) the Developer shall pay the Agency fifteen percent (15 %) of any positive net refinance proceeds. As of June 30, 2015, the outstanding balance was $11,809,648. c. Capital Assets An analysis of capital assets as of June 30, 2015, follows: * As a result of the dissolution of the former Redevelopment Agency, land in the amount of $4,905,912 was transferred to the City after review by the Oversight Board and approval of the California Department of Finance. a Beginning Transfers Ending Balance Increases Decreases Transfers to the City * Balance Capital assets, not being depreciated: Land $ 6,508,841 $ - $ - $ - $ (4,905,912) $ 1,602,929 Construction -in- progress 7,657,000 - (76,633) (6,480,002) - 1,100,365 Total Capital Assets, Not Being Depreciated 14,165,841 - (76,633) (6,480,002) (4,905,912) 2,703,294 Capital assets, being depreciated: Building improvements 41,340,841 - 6,480,002 - 47,820,843 Improvement other than buildings 1,059,893 - - - 1,059,893 Equipment and vehicles 9,975,186 - - 9,975,186 Furniture and fixtures 1,393,069 - - 1,393,069 Intangible 51,974 - - - 51,974 Total Capital Assets, Being Depreciated 53,820,963 - 6,480,002 - 60,300,965 Less accumulated depreciation: Building improvements 7,710,788 2,040,063 - - 9,750,851 Improvement other than buildings 174,752 52,994 - 227,746 Equipment and vehicles 8,471,067 389,557 - 8,860,624 Furniture and fixtures 1,346,991 30,403 - 1,377,394 Intangible 46,885 3,465 - 50,350 Total Accumulated Depreciation 17,750,483 2,516,482 - - 20,266,965 Total Capital Assets, Being Depreciated, Net 36,070,480 (2,516,482) 6,480,002 - 40,034,000 Business -Type Activities Capital Assets, Net $ 50,236,321 $ (2,516,482) $ (76,633) $ - $ (4,905,912) $ 42,737,294 * As a result of the dissolution of the former Redevelopment Agency, land in the amount of $4,905,912 was transferred to the City after review by the Oversight Board and approval of the California Department of Finance. a CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) d. Long -Term Debt A description of long -term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2015, follows: Tax Allocation Bonds 1. Rancho Cucamonga Redevelopment Agency, Rancho Development Project, 1999 Tax Allocation Refunding Bonds, $54,945,000. These bonds were dated August 30, 1999, and were issued in order to finance a portion of the Agency's Rancho Development Project, to currently refund the outstanding principal balance of $47,715,000 of the Rancho Development Project 1990 Tax Allocation Bonds and to fund redevelopment activities. Interest was payable semi - annually on March 1 and September 1, of each year commencing March 1, 2000. The bonds were to mature in annual installments ranging from $1,880,000 to $4,165,000 starting September 1, 2000 to September 1, 2020, and beared interest ranging from 4.25% to 5.25°/x. The bonds maturing before September 1, 2009, were not subject to call and redemption prior to their stated maturities. Bonds maturing on or after September 1, 2011, were subject at the option of the Agency, to redemption, in whole or in part, by lot, prior to their stated maturities on any date, commencing September 1, 2009. The bonds maturing on September 1, 2020, were subject to mandatory redemption in part from sinking account installments on September 1, 2015, and on each September 1 thereafter, up to and including September 1, 2020. 91 Balance Balance Due Within July 1, 2014 Additions Repayments Defeased DOF Disallowed June 30, 2015 One Year Bonds Tax Allocation Refunding Bonds - 1999 Issue $ 25,105,000 $ $ $ 25,105,000 $ $ - $ Tax Allocation Refunding Bonds - 2001 Issue 71,740,000 71,740,000 Tax Allocation Refunding Bonds - 2004 Issue 132,065,000 132,065,000 - Tax Allocation Refunding Bonds - 2004 Issue 137,100,000 3,230,000 - 133,870,000 3,390,000 Tax Allocation Refunding Bonds - 2014 Issue - 174,050,000 - - 174,050,000 5,375,000 Total Bonds 366,010,000 174,050,000 3,230,000 228,910,000 307,920,000 8,765,000 Developer Loans Price Club Costco 8,103,477 188,676 81,754 - 8,210,399 - Bank of New York 10,259,157 - 510,204 9,748,953 555,984 Total Developer Loans 18,362,634 188,676 591,958 17,959,352 555,984 Advances from City 9,521,227 - - - (9,521,227) - - Total $ 393,893,861 $ 174,238,676 $ 3,821,958 $ 228,910,000 $ (9,521,227) 325,879,352 $ 9,320,984 Unamortized premium 25,365,768 Total $ 351,245,120 Tax Allocation Bonds 1. Rancho Cucamonga Redevelopment Agency, Rancho Development Project, 1999 Tax Allocation Refunding Bonds, $54,945,000. These bonds were dated August 30, 1999, and were issued in order to finance a portion of the Agency's Rancho Development Project, to currently refund the outstanding principal balance of $47,715,000 of the Rancho Development Project 1990 Tax Allocation Bonds and to fund redevelopment activities. Interest was payable semi - annually on March 1 and September 1, of each year commencing March 1, 2000. The bonds were to mature in annual installments ranging from $1,880,000 to $4,165,000 starting September 1, 2000 to September 1, 2020, and beared interest ranging from 4.25% to 5.25°/x. The bonds maturing before September 1, 2009, were not subject to call and redemption prior to their stated maturities. Bonds maturing on or after September 1, 2011, were subject at the option of the Agency, to redemption, in whole or in part, by lot, prior to their stated maturities on any date, commencing September 1, 2009. The bonds maturing on September 1, 2020, were subject to mandatory redemption in part from sinking account installments on September 1, 2015, and on each September 1 thereafter, up to and including September 1, 2020. 91 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Tax Revenues, except as provided below, were pledged in their entirety to the payment of principal and interest, and redemption premium if any, on the bonds listed above and were referred to in the applicable series resolutions, as "Pledged Tax Revenues." Pledged Tax Revenues did not include that portion of Tax Revenues derived from the Project Area which are required by Section 33334.2 of the Redevelopment Law to be set aside by the Agency in a separate low and moderate income housing fund and be used for the purpose of increasing and improving the community's supply of low and moderate income housing. Pledged Tax Revenues also did not include that portion of tax revenues derived from the Project Area which were required to be used by the Agency in accordance with the provisions of certain agreements entered into by the Agency. The Agency entered into cooperative agreements with taxing agencies affected by the Redevelopment Project. Such agreements have been entered into with: a) the Chino Basin Municipal Water District, b) the County of San Bernardino on behalf of the County Free Library and the San Bernardino County Flood Control District, c) the Cucamonga County Water District, d) the Foothill Fire Protection District, and e) various school districts located within the project area. Under the terms of these agreements, the Agency agreed that certain tax revenues attributable to those areas and which were allocated to the Agency pursuant to Section 33670(b), were to be pledged by the Agency to make certain cash payments or in lieu of contributions to each affected taxing agency. Such payments were to be made from tax revenues allocated to the Agency. Pledged Tax Revenues also did not include interest income on the various funds and accounts created by the series resolutions. Any such investment income was available to the Agency to meet debt service payments on the bonds but was not specifically pledged therefore. In addition to providing for the pass- through of tax revenue to the County Free Library and the San Bernardino County Flood Control District, the agreement between the Agency and the County of San Bernardino also provided that tax revenues, which would have been allocated to the County had not the Redevelopment Plan been adopted, would be fully allocated to the Agency until fiscal year 1998 -1999. The agreement, however, further provided that the Agency must use such tax revenues for the development of certain regional facilities, as agreed to between the County and the Agency. The Agency refunded the 1999 Tax Allocation Refunding Bonds with the issuance of the 2014 Rancho Redevelopment Project Area Tax Allocation Refunding Bonds on July 15, 2014. There is no outstanding balance at June 30, 2015. 2. Rancho Cucamonga Redevelopment Agency, Rancho Development Project, 2001 Tax Allocation Bonds, $74,080,000. These bonds were dated August 7, 2001, and were issued in order to finance a portion of the Agency's Rancho Development Project and to pay certain costs of issuance of the bonds. Interest was payable semi - annually on March 1 and September 1 of each year commencing March 1, 2002. The bonds were to mature in annual installments from $10,000 to $11,540,000 from September 1, 2002 to September 1, 2030, and beared interest ranging from 3.000% to 5.125 %. 92 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) The bonds maturing before September 1, 2011, were not subject to call and redemption prior to their stated maturities. The bonds maturing on or after September 1, 2012, were subject, at the option of the Agency to redemption, in whole Or in part, by lot, prior to their stated maturities on any date, commencing September 1, 2011, among maturities at the discretion of the Agency and by lot within a maturity upon payment, from any source of funds available, of the principal amount and accrued interest payable thereon, without premium. Tax Revenues, except as provided below, were pledged in their entirety to the payment of principal, interest and redemption premium, if any, on the bonds listed above and are referred to in the applicable series resolutions as "Pledged Tax Revenues." Pledged Tax Revenues did not include that portion of Tax Revenues derived from the Project Area which were required by Section 33334.2 of the Redevelopment Law to be set aside by the Agency in a separate low and moderate income housing fund and be used for the purpose of increasing and improving the community's supply of low and moderate income housing. Pledged Tax Revenues also did not include that portion of tax revenues derived from the Project Area which were required to be used by the Agency in accordance with the provisions of certain agreements entered into by the Agency. The Agency entered into cooperative agreements with taxing agencies affected by the Redevelopment Project. Such agreements have been entered into with: a) the Chino Basin Municipal Water District, b) the County of San Bernardino on behalf of the County Free Library and the San Bernardino County Flood Control District, c) the Cucamonga County Water District, d) the Foothill Fire Protection District, and e) various school districts located within the project area. Under the terms of these agreements, the Agency agreed that certain tax revenues attributable to those areas and which are allocated to the Agency pursuant to Section 33670 (b), were to be pledged by the Agency to make certain cash payments or in lieu of contributions to each affected taxing agency. Such payments were to be made from tax revenues allocated to the Agency. Pledged Tax Revenues also did not include interest income on various funds and accounts created by the series resolutions. Any such investment income was available to the Agency to meet debt service payments on the bonds, but was not specifically pledged therefore. The Agency refunded the 2001 Tax Allocation Bonds with the issuance of the 2014 Rancho Redevelopment Project Area Tax Allocation Refunding Bonds on July 15, 2014. There is no outstanding balance at June 30, 2015. 3. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project, 2004 Tax Allocation Bonds, $165,680,000. These bonds were dated March 1, 2004, and were issued in order a.) to refund and defease the Agency's $52,225,000 outstanding principal amount Rancho Redevelopment Project 1994 Tax Allocation Refunding Bonds, and b.) to fund redevelopment activities. The issue consisted of $109,690,000 Serial Bonds with maturities beginning September 1, 2005 through September 1, 2025, $12,210,000 Term Bonds due September 1, 2028, bearing interest at 4.45% per annum and $43,780,000 Term Bonds due September 1, 2032, bearing interest at 4.50% per annum. Interest was payable semi - annually on March 1 and September 1 of each year commencing September 1, 2004. The Serial Bonds were to mature in annual installments ranging from $2,950,000 to $10,955,000 starting September 1, 2005 to September 1, 2025, and beared interest ranging from 2.00% to 5.00 %. 93 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Bonds maturing on or before September 1, 2014, were not subject to call and redemption prior to their stated maturities. Bonds maturing on or after September 1, 2015, were subject, at the option of the Agency, to redemption in whole or in part, prior to their stated maturities on any date, commencing September 1, 2014. The bonds maturing on September 1, 2028 and September 1, 2032, were subject to mandatory redemption in part from sinking account installments on September 1, 2026 and September 1, 2029, respectively, and on each September 1 thereafter, at a redemption price equal to 100% of the principal amount plus accrued interest, if any, to the redemption date, without premium. Tax Revenues, except as provided below, were pledged in their entirety to the payment of principal, interest and redemption premium, if any, on the bonds listed above and were referred to in the applicable series resolutions as "Pledged Tax Revenues." Pledged Tax Revenues do not include that portion of Tax Revenues derived from the Project Area which were required by Section 33334.2 of the Redevelopment Law to be set aside by the Agency in a separate low and moderate income housing fund and be used for the purpose of increasing and improving the community's supply of low and moderate income housing. Pledged Tax Revenues also did not include that portion of tax revenues derived from the Project Area which were required to be used by the Agency in accordance with the provisions of certain agreements entered into by the Agency. The Agency entered into cooperative agreements with taxing agencies affected by the Redevelopment Project. Such agreements have been entered into with a.) the Chino Basin Municipal Water District, b.) the County of San Bernardino on behalf of the County Free Library and the San Bernardino County Flood Control District, c.) the Cucamonga County Water District, d.) the Foothill Fire Protection District, and e.) various school districts located within the project area. Under the terms of these agreements, the Agency agreed that certain tax revenues attributable to those areas and which were allocated to the Agency pursuant to Section 33670 (b), shall be pledged by the Agency to make certain cash payments or in lieu of contributions to each affected taxing agency. Such payments were to be made from tax revenues allocated to the Agency. Pledged Tax Revenues also did not include interest income on various funds and accounts created by the series resolutions. Any such investment income was available to the Agency to meet debt service payments on the bonds but was not specifically pledged therefore. The bonds were further secured by a financial guarantee insurance policy in the event of nonpayment of principal and /or interest. The Agency refunded the 2004 Tax Allocation Bonds with the issuance of the 2014 Rancho Redevelopment Project Area Tax Allocation Refunding Bonds on July 15, 2014. There is no outstanding balance at June 30, 2015. 4. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project, Housing Set -aside Tax Allocation Bonds, Tax Exempt Series 2007A and Taxable Series 2007B. $155,620,000. In November 2007, the Rancho Cucamonga Redevelopment Agency issued $73,305,000 Rancho Redevelopment Project Housing Set -Aside Tax Allocation Bonds Tax - Exempt Series 2007A and $82,315,000 Rancho Redevelopment Project Housing Set -Aside Tax Allocation Bonds Taxable series 2007B to (a) refund and redeem the Agency's outstanding 94 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Rancho Redevelopment Project 1996 Housing Set -Aside Tax Allocation Bonds, (b) provide for the refunding and defeasance of the California Statewide Communities Development Authority Multifamily Housing Revenue Bonds, (c) extend set -aside and affordability restriction on 558 units within four apartment projects located in the City of Rancho Cucamonga pursuant to an Extended Affordability Agreement, and (d) finance other low and moderate income housing projects in or of benefit to the Project Area. The Series A issue consists of $29,950,000 in Serial bonds with maturities beginning September 1, 2008 through September 1, 2026, bearing interest ranging from 3.25% through 5.0 %; and $43,355,000 in Term bonds due September 1, 2034, bearing interest at 5 %. The Series B issue consists of $19,675,000 Term bonds due September 1, 2017, bearing interest at 5.529 %; and $62,640,000 Term bonds due September 1, 2031, bearing interest at 6.262 %. Interest on both Series A and B bonds is payable semi - annually on March 1 and September 1 of each year, commencing March 1, 2008. The Series A Bonds maturing on or before September 1, 2017, are not subject to call and redemption prior to maturity. The Series A Bonds maturing on or after September 1, 2018, will be subject to call and redemption prior to maturity at the option of the Agency, on or after September 1, 2017. The Taxable Series B Bonds are subject to optional redemption, on any date prior to their maturity. The 2007 bonds are secured and payable from Tax Revenues on a subordinate basis with respect to a Loan Agreement dated as of December 15, 1997, between the Agency, Northtown Housing Development Corporation and Pacific Life Insurance Company (Loan Payable -Bank of New York) — the Senior Loan. The Indenture does not permit additional senior obligations. The Agency is permitted under the Indenture to incur additional obligations — Parity Bonds — secured by a pledge of Tax Revenues on a parity basis with the pledge of Tax Revenues to the 2007 Bonds. Tax Revenues which secure the 2007 Bonds consist solely of the Housing Set - Aside. The balance at June 30, 2015, amounted to $133,870,000 plus unamortized bond premium of $652,783. Principal Interest 2015-2016 $ 3,390,000 $ 7,402,359 2016-2017 3,565,000 7,223,693 2017-2018 3,750,000 7,029,556 2018-2019 3,955,000 6,817,915 2019-2020 4,175,000 6,594,014 2020-2025 24,700,000 29,025,572 2025-2030 37,280,000 20,183,071 2030-2035 53,055,000 6,863,293 Total $ 133,870,000 $ 91,139,473 95 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 5. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project Area Tax Allocation Refunding Bonds, Series 2014. $174,050,000. These bonds are dated July 15, 2014, and were issued to refinance certain obligations of the Project Area including the 1999 Tax Allocation Refunding Bonds, 2001 Tax Allocation Bonds and 2004 Tax Allocation Bonds. The Bonds will be payable from and secured by, designated property tax revenues (formerly tax increment revenues) related to the Rancho Redevelopment Project, which will consist of moneys deposited, from time to time, in the Redevelopment Property Tax Trust Fund ( "RPTTF ") established under the Dissolution Act, defined below, but exclude those amounts which were, prior to the Dissolution Act, required to be deposited into the Former Agency's Low and Moderate Income Housing Fund to the extent required to pay debt service on existing Housing Obligations. Interest is payable semi - annually on March 1 and September 1, of each year commencing March 1, 2015. The bonds mature in annual installments ranging from $2,750,000 to $14,235,000 starting September 1, 2015 to September 1, 2032, and bear interest ranging from 3% to 5 %. The balance at June 30, 2015, amounted to $174,050,000 plus unamortized bond premium of $24,712,985 and unamortized gain on defeasance of $2,324,547. The following schedule illustrates the debt service requirements to maturity for the 2014 Tax Allocation Refunding Bonds as of June 30, 2015: Total $ 174,050,000 $ 89,622,950 The net proceeds of $197 million of the Tax Allocation Refunding Bonds, Series 2014 (after a premium of $26 million and payment of $3 million in underwriting fees, insurance, and other issuance costs) were used to advance refund the 1999 Tax Allocation Refunding Bonds, 2001 Tax Allocation Bonds and 2004 Tax Allocation Bonds with the Tax Allocation Refunding Bonds, Series 2014 and were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded 1999 Tax Allocation Refunding Bonds, 2001 Tax Allocation Bonds and 2004 Tax Allocation Bonds with the Tax Allocation Refunding Bonds, Series 2014. As a result, the refunded bonds are considered to be defeased and the liability for these bonds has been removed from the long term debt of the Successor Agency. The advance refunding increased the total debt service payment by $17.5 million over the next 18 years and resulted in an economic gain of $0.8 million. 0. Principal Interest 2015-2016 $ 5,375,000 $ 8,391,950 2016-2017 6,645,000 8,165,300 2017-2018 6,910,000 7,894,200 2018-2019 7,190,000 7,576,250 2019-2020 7,550,000 7,207,750 2020-2025 43,790,000 29,835,000 2025-2030 55,890,000 17,433,750 2030-2035 40,700,000 3,118,750 Total $ 174,050,000 $ 89,622,950 The net proceeds of $197 million of the Tax Allocation Refunding Bonds, Series 2014 (after a premium of $26 million and payment of $3 million in underwriting fees, insurance, and other issuance costs) were used to advance refund the 1999 Tax Allocation Refunding Bonds, 2001 Tax Allocation Bonds and 2004 Tax Allocation Bonds with the Tax Allocation Refunding Bonds, Series 2014 and were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded 1999 Tax Allocation Refunding Bonds, 2001 Tax Allocation Bonds and 2004 Tax Allocation Bonds with the Tax Allocation Refunding Bonds, Series 2014. As a result, the refunded bonds are considered to be defeased and the liability for these bonds has been removed from the long term debt of the Successor Agency. The advance refunding increased the total debt service payment by $17.5 million over the next 18 years and resulted in an economic gain of $0.8 million. 0. CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Developer Loans Payable In December 1990, the Rancho Cucamonga Redevelopment Agency entered into a Disposition and Development Agreement with The Price Company (Developer). In accordance with this agreement the Agency executed a 23 -year note in the amount of $3,756,615. The note was issued to provide financing of certain redevelopment activities that included the acquisition of approximately 13 acres of land. The note bears interest at 9% per annum. The Agency shall pay the Developer quarterly payments amounting to 50% of taxes derived from the imposition of the Bradley Burns Uniform Local Sales and Use Tax Law commencing with Section 7200 of the revenue and Taxation Code of the State of California, as amended, arising from all businesses and activities conducted on the Costco Parcel. The Note was renegotiated on July 18, 2002, as the Costco Note. The new loan principal of $6,347,171 included accrued interest through that date. Debt Service Payments shall be made for a period of up to fourteen (14) Note Years, expiring on October 12, 2015, or until accrued interest and principal on this Note are paid in full, whichever occurs first. In the event that, at the expiration of the Payment Period, the sum of all Debt Service Payments actually made plus all accrued but then unpaid Debt Service Payments is not sufficient to fully discharge all principal, interest and other sums due under this Note by the expiration of the Payment Period, then, the unpaid balance of principal and accrued interest, if any, shall be deemed forgiven, provided the Agency has paid all amounts due hereunder through the expiration of the Payment Period. The balance at June 30, 2015, amounted to $8,210,399. 2. On August 21, 1996, the Agency executed a note payable to Pacific Life Insurance Company (subsequently assigned to Bank of New York) in the amount of $9,411,477. The proceeds of the note were paid directly to Northtown Housing Development Corporation for the development of the Northtown Housing project. The outstanding principal bears interest at 8.78% compounding semi - annually from the date of the note until paid. Interest was added to the principal on each March 15 and September 15 through March 15, 2002, amounting to $4,210,264 in addition to principal. Commencing on September 15, 2002, both principal and interest shall be due and payable semi - annually on March 15 and September 15, of each year through March 2026. The balance at June 30, 2015, amounted to $9,748,953. The following schedule illustrates the debt service requirements to maturity as of June 30, 2015: 97 Principal Interest 2015-2016 $ 555,984 $ 844,016 2016-2017 605,871 794,129 2017-2018 660,233 739,767 2018-2019 719,475 680,525 2019-2020 784,030 615,970 2020-2025 5,110,435 1,889,565 2025-2030 1,312,925 57,075 Total $ 9,748,953 $ 5,621,047 97 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Advances from the City During the prior fiscal years, the City of Rancho Cucamonga loaned the Rancho Cucamonga Redevelopment Agency funds for use in financing various projects with interest at 12% per annum. Due to an adverse determination made by the State Department of Finance subsequent to year end, management determined it would be prudent to write off $9,521,227 of the advances from the City which is reflected in this principal balance. At June 30, 2015, there was no principal balance on these loans. See additional information in Note 17. Pledged Revenue The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set -aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $488,682,423 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the City for the payment of indebtedness incurred by the dissolved redevelopment agency was $28,759,725 and the debt service obligation on the bonds was $16,128,752. In July 1994, the Agency entered into an affordable housing Pledge Agreement with So Cal Housing which they could use to secure affordable housing units. In August 1996, the Agency approved Amendment No. 2 to the 1994 Original Pledge, to commit to pay approximately $340,000 annually to the California Housing Finance Agency (CHFA) to benefit the required reserves for three affordable family housing developments up to November 2026. The balance of the commitment at June 30, 2015 is $3,905,000. e. Insurance The Successor Agency is covered under the City of Rancho Cucamonga's insurance policies. Therefore, the limitation and self- insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self- insured retentions can be found in Note12. f. Participation Agreements In August 2005, the Agency entered into a real estate tax, sales tax, tax increment and business license tax participation agreement with Bass Outdoor World, LLC (Bass Pro), 80 VGL, LLC and 20 VGL, LLC (80 VGL, LLC and 20 VGL, LLC are collectively referred to as Landlord). Under the terms of the agreement, the Agency is required to make annual payments equal to one hundred percent (100 %) of the tax increment revenues, sales tax revenues and business license tax paid during each year. However, Landlord has the priority for reimbursements of real estate taxes paid for each year prior to any CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) payments being made to Bass Pro. The total amount paid to Landlord and Bass Pro shall not exceed $1,100,000 in any given year. The agreement terminates in fiscal year 2032 -2033. However, due to ERAF payment made, the agreement was extended to December 2034. During the year ended June 30, 2015, the Agency made payments totaling $587,029. The principal amount of the bonds that were issued on July 30, 2015 are as follows: Community Facilities District No. 2000 -01 Community Facilities District No. 2000 -02 Community Facilities District No. 2001 -01 A Community Facilities District No. 2001 -01 B Community Facilities District No. 2006 -01 Community Facilities District No. 2006 -02 Total Note 15: Net Position and Fund Balance Restatement $455,000 4,178,000 7,256,000 702,000 3,727,000 2,228,000 $18,546,000 Beginning Net Position has been restated by $65,559,349 to implement the provision of Governmental Accounting Standards Board Statement No. 68 to record PERS net pension liability, PARS net pension asset and deferred pension related items. $64,322,327 relates to governmental activities and $1,237,022 relates to business -type activities. Note 16: Extraordinary Gain /Loss During the year ended June 30, 2015, the Successor Agency transferred land to the City resulting in an extraordinary gain for the City and an extraordinary loss for the Successor Agency in the amount of $4,905,912. The land is now recorded in the City. In addition, the Successor Agency transferred bond proceeds to the Housing Successor Agency resulting in an extraordinary gain for the City and an extraordinary loss for the Successor Agency in the amount of $4,320,145. The result is an extraordinary gain for the City and extraordinary loss for the Successor Agency in the amount of $9,226,057. Lastly, advances from the City to the Successor Agency were denied resulting in an extraordinary loss for the General Fund and an extraordinary gain for the Successor Agency in the amount of $9,521,226. Note 17: Subsequent Events Effective July 1, 2015, the Rancho Cucamonga Fire Protection District (the District) became a member of the Public Agency Risk Sharing Authority of California (Authority) for its workers compensation insurance and concurrently separated from the Public Agency Self- Insurance System (PASIS) of San Bernardino County. The District will maintain reserves to cover its June 30, 2015 estimated claims liability for workers compensation up to its self- insured retention of $300,000. Claims in excess of the self - insured amount will be covered by CSAC -EIA. All workers compensation coverage from July 1, 2015 forward will be provided by the Authority. Under the program, the District has a $250,000 retention limit for workers compensation. The Authority covers workers compensation claims in excess of the $250,000 retention limit up to $500,000. The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The District pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority's operating results. CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 17: Subsequent Events (Continued) 2. On July 1, 2015, the City Council adopted Resolution No. 15 -115 authorizing the issuance of special tax refunding bonds for various districts. The 2015 Special Tax Refunding Bonds Various Communities Facilities Districts, in the principal amount of $18,546,000, were issued on July 30, 2015. 3. On March 27, 2015, the State Department of Finance (DOF) denied certain debt service payments for the ROPS15 -16A (July 1, 2015 — December 31, 2015) period resulting in the nonpayment of the obligations subsequent to year end. These obligations are: a. ROP15 -16A Item No. 42 — Northtown Housing Development Corporation (NHDC) Pledge debt service payment in the amount of $700,000. b. ROPS15 -16A Item No. 48 —California Housing Finance Agency (CHFA) debt service payment in the amount of $169,600. Staff provided additional documentation to the DOF resulting in the approval of these payments in the ROPS15 -16B (January 1, 2016 - June 30, 2016) period, per the DOF's November 13, 2015 email to the City. Payment is anticipated to occur in January 2016. 4. On October 12, 2015, the Costco note payable expired according to the agreement dated July 18, 2002. The remaining balance as of the expiry date in the amount of $8,091,000 has been deemed forgiven. The ROPS 15 -16 debt service payments (approved by the DOF) are anticipated to occur in January 2016 along with the interest and administrative fees incurred relating to the default NHDC payment (pending approval by DOF by December 17, 2015). On November 13, 2015, the State Department of Finance (DOF) objected to the Oversight Board Action of September 22, 2015 which made a finding that loans between the former Rancho Cucamonga Redevelopment Agency (RDA) and the City of Rancho Cucamonga (City) were for legitimate redevelopment purposes, and taking certain related actions. As such, the loans (shown as advances from the City in Note 14) are not enforceable obligations per the DOF. The City disagrees with the DOF's decision and requested a Meet and Confer with DOF to dispute their decision. The Meet and Confer occurred on November 24, 2015 where the DOF requested additional documentation and a decision is expected December 15, 2015. Due to the uncertainty surrounding the outcome of the Meet and Confer process in conjunction with consultation with the City's legal counsel, management has determined that it would be prudent to write off the majority of the City's advances to the Successor Agency as of June 30, 2015 in the amount of $9,521,227. This results in the recognition of an extraordinary gain for the Successor Agency and an extraordinary loss for the City in the amount of $9,521,227 for the fiscal year ended June 30, 2015. 100 REQUIRED SUPPLEMENTARY INFORMATION 101 THIS PAGE INTENTIONALLY LEFT BLANK 102 CITY OF RANCHO CUCAMONGA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2015 Budgetary Comparison Information a. Budget Data General Budaet Policies The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The Council conducts public hearings prior to its adoption, and when required during the period, also approves supplemental appropriations. There were several supplemental appropriations required during the year. A detailed mid -year review was conducted at which time a revised budget was adopted. There were no significant non - budgeted financial activities during the year. The City Council may transfer funds between funds or activities set forth in the budget. The City Manager may transfer funds between line items within an appropriation as set forth in the budget and may transfer appropriations between activities within any fund. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level within the General Fund and at the function level for Special Revenue Funds, Capital Project Funds and Debt Service Funds. Basis of Budgeting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that for budgeting purposes only encumbrances are treated as expenditures. A reconciliation has been provided on the applicable schedule when the basis of budgeting differs from GAAP. b. For the fiscal year 2014 -2015, the following funds had no adopted annual budgets: SB 140 Used Oil Recycling Grant Library Services and Technologies Act Energy Efficient and Conservation Block Grant Cops Secure out Schools Grant Drink, Drive, Lose Grant Henderson /Wardman Drainage Federal Grant Fund — Dreier Library Impact Fee Police Impact Fee Animal Center Impact Fee Park Land Acquisition Assessment District 86 -2 CFD 2000 -01 South Etiwanda CFD 2000 -03 Rancho Summit CFD 2003 -01 Project Fund Public Library Bond Act — 2000 These funds had no adopted budget due to the timing of the usage of these grants and capital project funds. Money will be budgeted as needed based on specific projects. 103 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) GENERALFUND YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Contributions Miscellaneous Transfers in Proceeds from sale of capital asset Amounts Available for Appropriations Charges to Appropriations (Outflow): General government General overhead Personnel overhead City council City management City clerk Administrative services Business licenses City facilities Finance Geographic information systems Management information services Personnel Purchasing Risk management Treasury management Records management City telecommunications Public safety - police Sheriff contract services Public safety - animal center Animal center Community development Planning Planning commission Community improvement Administration Building and safety Community services Administration Park and recreation commission Engineering and public works Engineering administration Development management NPDES Project management Traffic management Park maintenance Vehicle and equipment maintenance Facilities maintenance Street maintenance Capital outlay Debt service: Principal retirement Interest and fiscal charges Transfers out Extraordinary loss Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 109,192,476 $ 109,192,476 $ 109,192,476 $ 56,325,300 59,122,240 60,564,721 1,442,481 3,833,610 3,754,600 3,919,093 164,493 519,540 547,430 390,032 (157,398) 3,839,360 2,885,400 3,250,622 365,222 1,001,730 1,191,120 1,166,514 (24,606) 1,172,440 1,117,890 1,402,246 284,356 45,430 66,520 35,658 (30,862) 2,527,230 2,982,370 3,167,846 185,476 1,185, 360 1,185, 360 1,185,360 - 54,630 50,070 22,721 (27,349) 179,697,106 182,095,476 184,297,289 2,201,813 2,341,500 2,572,510 2,205,870 366,640 428,530 2,537,890 2,454,781 83,109 12 5, 400 126,050 112,004 14,046 1,239, 960 1,196,240 1,069, 778 126,462 2,040 2,190 2,033 157 240,800 245,820 229,263 16,557 297,410 281,420 265,208 16,212 1,330, 530 1,295,140 1,100,534 194,606 1,176,310 1,134,830 968,424 166,406 418,170 433,470 348,482 84,988 2,050,470 2,185,440 2,008,113 177,327 484,490 527,240 482,024 45,216 383,310 223,330 165,330 58,000 184,240 187,350 158,050 29,300 16,070 10,220 11,343 (1,123) 489,720 391,870 343,708 48,162 353,930 326,040 283,890 42,150 32,093,710 31,878,040 31,222,586 655,454 2,809,120 2,825,560 2,745,903 79,657 2,057,500 3,463,038 2,963,079 499,959 16,630 16,730 15,774 956 748,680 505,930 439,042 66,888 574,660 580,920 493,771 87,149 1,826,410 1,811,830 1,710,484 101,346 4,739,540 4,683,350 4,217,656 465,694 3,500 3,270 2,624 646 474,080 469,390 447,862 21,528 712,790 672,420 622,810 49,610 414,320 372,170 359,251 12,919 464,010 456,390 412,363 44,027 149,670 136,070 112,343 23,727 2,829,980 2,830,660 2,497,580 333,080 1,006,770 944,250 887,274 56,976 3,620,910 3,607,820 3,153,678 454,142 2,465,040 2,491,190 2,359,046 132,144 1,674,960 2,112,510 1,442,225 670,285 104 13,750 14,790 2,481,260 2,468,450 72,740,170 76,021,828 $ 106,956,936 $ 106,073,648 8,885 5,905 5,572 (5,572) 2,676,405 (207,955) 9,521,226 (9,521,226) 80,526,274 (4,504,446) 103,771,015 $ (2,302,633) 2,379,738 $ 106,150,753 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CITYWIDE INFRASTRUCTURE IMPROVEMENT YEAR ENDED JUNE 30, 2015 105 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,271,151 $ 6,271,151 $ 6,271,151 $ - Resources (Inflows): Intergovernmental 4,000,000 4,782,000 4,995,804 213,804 Use of money and property 62,370 84,020 116,460 32,440 Miscellaneous - 5,898,270 6,028,318 130,048 Amounts Available for Appropriations 10,333,521 17,035,441 17,411,733 376,292 Charges to Appropriation (Outflow): Engineering and public works 38,690 38,690 38,690 - Capital outlay 870,000 2,085,530 836,939 1,248,591 Total Charges to Appropriations 908,690 2,124,220 875,629 1,248,591 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 9,424,831 $14,911,221 16,536,104 $ 1,624,883 Encumbrances 238,553 Budgetary Fund Balance, June 30 (GAAP Basis) $16,774,657 105 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HOUSING SUCCESSOR AGENCY YEAR ENDED JUNE 30, 2015 Budget Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) Budgetary Fund Balance, July 1 $119,789,418 $ 119,789,418 $ 119,789,418 $ - Resources (Inflows): Use of money and property - 14,270 397,884 383,614 Miscellaneous - 11,560 547,742 536,182 Extraordinary gain - 1,970,150 4,320,145 2,349,995 Amounts Available for Appropriations 119,789,418 121,785,398 125,055,189 3,269,791 Charges to Appropriation (Outflow): Community development - 114,930 114,518 412 Capital outlay - 12,150 - 12,150 Total Charges to Appropriations - 127,080 114,518 12,562 Budgetary Fund Balance, June 30 (Budgetary Basis) $119,789,418 $ 121,658,318 124,940,671 $ 3,282,353 Encumbrances 3,000 Budgetary Fund Balance, June 30 (GAAP Basis) $ 124,943,671 1: CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) FIRE DISTRICT YEAR ENDED JUNE 30, 2015 107 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 as restated $65,326,134 $ 65,326,134 $65,326,134 $ - Resources (Inflows): Taxes 34,265,390 34,928,560 35,551,660 623,100 Licenses and permits 47,340 24,880 23,095 (1,785) Charges for services 78,820 27,860 23,564 (4,296) Use of money and property 781,520 816,610 1,005,712 189,102 Fines and forfeitures 39,800 43,200 38,985 (4,215) Contributions 3,000 - - - Miscellaneous 773,690 1,098,200 1,151,702 53,502 Proceeds from sale of capital asset - 1,560 1,457 (103) Amounts Available for Appropriations 101,315,694 102,267,004 103,122,309 855,305 Charges to Appropriation (Outflow): Public safety - fire protection 30,669,770 30,721,720 29,708,177 1,013,543 Capital outlay 3,626,000 9,501,410 8,203,085 1,298,325 Debt service: Principal retirement 630,650 630,650 3,126 627,524 Interest and fiscal charges 173,930 173,930 174,061 (131) Total Charges to Appropriations 35,100,350 41,027,710 38,088,449 2,939,261 Budgetary Fund Balance, June 30 (Budgetary Basis) $66,215,344 $ 61,239,294 65,033,860 $ 3,794,566 Encumbrances 3,964,214 Budgetary Fund Balance, June 30 (GAAP Basis) $68,998,074 107 CITY OF RANCHO CUCAMONGA MISCELLANEOUS PLAN - AGENT MULTIPLE - EMPLOYER SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) MEASUREMENT PERIOD (1) 2014 TOTAL PENSION LIABILITY Service Cost $ 4,661,973 Interest 12,370,506 Benefit Payments, Including Refunds of Employee Contributions (5,229,846) Net Change in Total Pension Liability 11,802,633 Total Pension Liability - Beginning 165,224,012 Total Pension Liability - Ending (a) $ 177,026,645 PLAN FIDUCIARY NET POSITION Contributions - Employer $ 3,520,721 Contributions - Employee 2,156,312 Net Investment Income (2) 21,772,350 Benefit Payments, Including Refunds of Employee Contributions (5,229,846) Net Change in Fiduciary Net Position 22,219,537 Plan Fiduciary Net Position - Beginning 124,692,088 Plan Fiduciary Net Position - Ending (b) $ 146,911,625 Plan Net Pension Liability /(Assets) - Ending (a) - (b) $ 30,115,020 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 82.99% Covered - Employee Payroll $ 27,718,492 Plan Net Pension Liability /(Asset) as a Percentage of Covered - Employee Payroll 108.65% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. (2) Net of administrative expenses. Notes to Schedule: Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes of Assumptions: There were no changes in assumptions. 108 CITY OF RANCHO CUCAMONGA MISCELLANEOUS PLAN - AGENT MULTIPLE - EMPLOYER SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2013 -14 Actuarially Determined Contribution $ 3,520,721 Contribution in Relation to the Actuarially Determined Contribution (3,520,721) Contribution Deficiency (Excess) $ - Covered - Employee Payroll $ 27,718,492 Contributions as a Percentage of Covered - Employee Payroll 12.70% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Assets valuation method Inflation Salary Increases Investment rate of return Retirement age Mortality 109 June 30, 2013 Entry age normal Level percentage of payroll, closed 15 years 5 -year smoothed market 2.75% 4.5% average, including inflation of 3.0% 7.50% net of pension investment and administrative expenses, including inflation. Minimum 50 years for tier 1, tier 2 and tier 3. Minimum 52 years for PEPRA. The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre - retirement and post- retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. CITY OF RANCHO CUCAMONGA COST SHARING MULTIPLE - EMPLOYER PLANS SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 Proportion of the Net Pension Liability Miscellaneous Tier 1 Plan 0.02156% Miscellaneous Tier 2 Plan 0.00010% Miscellaneous PEPRA 0.00000% Safety Tier 1 Plan 0.31104% Safety Tier 2 Plan 0.00027% Safety PEPRA 0.00004% Proportionate Share of the Net Pension Liability Miscellaneous Tier 1 Plan $ 1,341,679 Miscellaneous Tier 2 Plan 6,509 Miscellaneous PEPRA 6 Safety Tier 1 Plan 19,354,250 Safety Tier 2 Plan 16,928 Safety PEPRA 2,686 Covered - Employee Payroll Miscellaneous Tier 1 Plan $ 1,304,997 Miscellaneous Tier 2 Plan 155,601 Miscellaneous PEPRA 68,600 Safety Tier 1 Plan 9,776,194 Safety Tier 2 Plan 273,668 Safety PEPRA 247,941 $ 11,827,001 Proportionate Share of the Net Pension Liability as Percentage of Covered - Employee Payroll Miscellaneous Tier 1 Plan 102.81% Miscellaneous Tier 2 Plan 4.18% Miscellaneous PEPRA 0.01% Safety Tier 1 Plan 197.97% Safety Tier 2 Plan 6.19% Safety PEPRA 1.08% Total Miscellaneous Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Miscellaneous Tier 1 Plan 83.03% Miscellaneous Tier 2 Plan 83.03% Miscellaneous PEPRA 83.33% Safety Tier 1 Plan 81.42% Safety Tier 2 Plan 81.42% Safety PEPRA 81.42% Notes to Schedule: Benefit Changes: None. Changes of Assumptions: None. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. 110 CITY OF RANCHO CUCAMONGA COST SHARING MULTIPLE - EMPLOYER PLANS SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Actuarially Determined Contributions Miscellaneous Tier 1 Plan Miscellaneous Tier 2 Plan Miscellaneous PEPRA Safety Tier 1 Plan Safety Tier 2 Plan Safety PEPRA Contribution in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered - Employee Payroll Contributions as a Percentage of Covered - Employee Payroll 2015 $ 19,064 16,491 2,057 2,492,748 62,540 26,019 (2,618,919) $ 11,827,001 22.14% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Single and Agent Employers Amortization method Remaining amortization period Assets valuation method Inflation Salary Increases Investment rate of return Retirement age Mortality 111 June 30, 2013 Entry age normal Straight Line 3.8 Years Building -Block Method 2.75% Varies by Entry Age and Service 7.50% net of pension plan investment expense, including inflation Minimum 50 years for miscellaneous tier 1, miscellaneous tier 2, safety tier 1, safety tier 2, and safety PEPRA. Minimum 52 years for miscellaneous PEPRA Derived using CalPERS' Membership Data for all Funds CITY OF RANCHO CUCAMONGA PARS RETIREMENT ENHANCEMENT PLAN SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) MEASUREMENT PERIOD 2014 TOTAL PENSION LIABILITY Service Cost $ 719,000 Interest 1,329,000 Benefit Payments, Including Refunds of Employee Contributions (495,000) Net Change in Total Pension Liability 1,553,000 Total Pension Liability - Beginning 20,790,000 Total Pension Liability - Ending (a) $ 22,343,000 PLAN FIDUCIARY NET POSITION Contribution - Employer $ 497,000 Net Investment Income (2) 3,177,000 Benefit Payments, Including Refunds of Employee Contributions (495,000) Other Changes in Fiduciary Net Position (33,000) Net Change in Fiduciary Net Position 3,146,000 Plan Fiduciary Net Position - Beginning 24,536,000 Plan Fiduciary Net Position - Ending (b) $ 27,682,000 Plan Net Pension Liability /(Assets) - Ending (a) - (b) $ (5,339,000) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 123.90% Covered - Employee Payroll $ 23,356,446 Plan Net Pension Liability /(Asset) as a Percentage of Covered - Employee Payroll - 22.86% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. (2) Net of administrative expenses. Notes to Schedule: Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2014. Changes of Assumptions: There were no changes in assumptions. 112 CITY OF RANCHO CUCAMONGA PARS RETIREMENT ENHANCEMENT PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2013 -14 Actuarially Determined Contribution $ 497,000 Contribution in Relation to the Actuarially Determined Contribution (497,000) Contribution Deficiency (Excess) $ - Covered - Employee Payroll (3) (4) $ 23,356,446 Contributions as a Percentage of Covered - Employee Payroll (3) 2.13% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Assets valuation method Inflation Salary Increases Investment rate of return Retirement age Mortality 113 June 30, 2014 Entry age Level percentage of payroll, closed 15 years 5 -year rolling period 3.00% 4.5% average, including inflation of 3.0% 6.25% net of pension investment and administrative expenses, including inflation. The probabilities of retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. The probabilities of mortality are based on the 2010 CalPERS Expereince Study for the period from 1997 to 2007. Pre - retirement and post- retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. THIS PAGE INTENTIONALLY LEFT BLANK 114 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Special Revenue Funds Special Revenue Funds account for revenues derived from specific sources which are required by law or administrative regulation to be accounted for in a separated fund. Funds included are: Gas Tax Fund - Established to account for the revenue and disbursement of funds used for road construction and maintenance of the City network system. The City's share of state gasoline taxes provided the financing. Recreation Fund - Established to account for the wide variety of classes, special events, and activities sponsored by the Community Services Department. Park Development Fund - Established to account for the residential park development fees charged subdividers upon issuance of a building permit for development of future park or recreational sites. Beautification Fund - Established to account for fees collected to provide proper landscaping and irrigation systems after parkway and median improvements are made. Lighting Districts Fund - Established to account for the costs associated with providing street lights. Financing is provided by special assessments levied against the benefiting property owners. Landscape Maintenance Fund - Established to account for the costs associated with providing landscape maintenance. Financing is provided by special assessments levied against the benefiting property owners. Transportation Fund - Established to account for fees charged a subdivider for the construction and expansion of City streets and highways which provide additional capacity and safety. Pedestrian Grant Fund - Established to account for the revenue and disbursement of funds received for the construction of facilities provided for the exclusive use of pedestrians and bicycles. Community Development Block Grant Fund - Established to account for grants received from the Department of Housing and Urban Development. These revenues must be expended to accomplish one of the following objectives: elimination of slum or blight; or benefit to low and moderate income persons by providing loans and grants to owner - occupants and rental property owners to rehabilitate residential properties. Assessment Administration Fund - Established to account for the revenue and disbursement of administration of assessment districts. San Sevaine /Etiwanda Drainage Fund — Established to account for Development Impact fees collected in the San Sevaine /Etiwanda Drainage Assessment District for the construction of regional and mainline flood control projects in that district. SB 140 Fund - Established to account for the revenue and disbursement of State matching funds for the construction of eligible street construction projects. Air Quality Improvement Fund - Established to account for the revenue and disbursement of funds received as a result of Assembly Bill 2766 which imposed an additional registration fee on motor vehicles. These revenues are to be used to reduce air pollution from motor vehicles and for related planning, monitoring, enforcement, and technical studies (Vehicle Code Section 9250.17 and Health and Safety Code Chapter 7, Part 5 of Division 26, commencing with Section 44220). 115 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Special Revenue Funds (Continued) South Etiwanda Drainage Fund - Established to account for monies deposited by property owners for initial consulting costs related to a possible formation of an assessment district for master planned drainage facilities. Lower Etiwanda Drainage Fund - Established to account for development impact fees collected in the Etiwanda area south of Base Line Road for the construction of master plan storm drain projects. Masi Commerce Center (Assessment District No. 93 -1) Fund - Established to acquire the necessary infrastructure from the developer after the completion and acceptance of the approved improvements. Financing was provided by the sale of bonds pursuant to the provisions of the Improvement Act of 1915. Measure I Fund - Established to account for the revenue and disbursement of county /local gasoline tax funds for the construction and maintenance of eligible street projects. Library Services Fund - Established to account for services provided by the City of Rancho Cucamonga Library. Funding for this service is made possible through a transfer of San Bernardino County library tax revenues to the City of Rancho Cucamonga for library purposes. Some start -up costs were incurred during 1993/94; however, full implementation of City library services did not begin until September 1994. Proposition 84 — Park Bond Act Fund- Prop 84 provides state funding, on a competitive basis, to local governments for the creation of new parks and recreation opportunities. The Statewide Park Program legislation requires projects to meet six eligibility requirements. The fund was established to account for the financial activities associated with the design and construction of the neighborhood park in southwest Rancho Cucamonga. Asset Forfeiture Fund - Established to account for the funds received from the Federal and State government for the equitable transfer of forfeited property and cash in which the City directly participates in the law enforcement efforts leading to the seizure and forfeiture of the property. Used Oil Recycling Grant Fund - In 1991, the Legislature passed AB 2076, the California Oil Recovery Enhancement Act. The act requires oil manufacturers to pay $0.04 to the California Integrated Waste Management Board for each quart of lubricating oil sold in the State of California. These grant funds are available to governmental agencies, based on population, for the purpose of establishing and administering used oil collection programs. These funds must be used expressly for oil recycling collection and educational programs. COPS Program Grant Fund - Established to account for a grant awarded as the result of the approval of State Assembly Bill 3229. The grant is a one -year award with no matching fund requirements. Drainage Facilities Fund - Established to account for fees charged developers for purposes of defraying the actual or estimated costs of constructing planned drainage or sewer facilities that are in the subdivision. CA State Library Fund - This "Family Place" training grant from the California State Library provided funding for two Library staff to attend a one -week training that will enable them to develop special programs at the Biane Library and the Family Resource Center. This grant has no matching requirements. 116 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Special Revenue Funds (Continued) Library Services and Technologies Act Fund - In fiscal year 1994/95, the City began providing library services to the residents of Rancho Cucamonga. In the fall of 1994, the City opened the interim municipal library facility with a 70,000 piece collection consisting of books, audio, video and reference materials. The 22,000 square foot facility doubled the amount of space previously available through the County system. The City's library collection and programs are designed to meet the needs of adults, young adults and children of Rancho Cucamonga. Funding for the library system comes from current taxes that are collected by the County for library services. The City's library system continues to operate from these same tax dollars and does not receive any additional funding from the City's general fund. AB 2928 Traffic Congestion Relief - Established fund to account for the revenue and disbursement of funds received as a result of Assembly Bill 2928. The purpose of the Traffic Congestion Program was to provide funding for transportation projects that would relieve congestion, connect transportation systems, and provide for better goods movement. Litter Reduction Grant Fund - Established to account for a grant from the State Department of Conservation. This grant will fund a program that will emphasize the collection and recycling of beverage containers at large venues, public areas, residential communities or schools. Energy Efficient and Conservation Block Grant ( EECBG) Fund — Through the American Recovery and Reinvestment Act of 2009, the U.S. Department of Energy issued formula -based grants under the EECBG program. The grant funds received by the City funded the following activities: 1) Civic Center Phase I — Replacement of HVAC Controls; 2) Home Improvement Program Energy Efficiency Revolving Loan; 3) Energy Efficient Appliances, Electrical, and Mechanical Equipment Program; and 4) partial funding for an Energy Efficiency Coordinator to oversee the City's efforts to reduce energy consumption and conduct a public outreach campaign to promote energy efficiency. Senior Outreach Grant Fund — This fund was established to account for funds passed through the San Bernardino County Department of Aging and Adult Services from the California Department of Aging to provide free recreation classes and programs for senior citizens in the City of Rancho Cucamonga. These recreation activities focused on physical, social, psychological, educational, and recreational needs of older persons. The City provided an in -kind match of $1,200 in the form of marketing, staff oversight, and supplies. Underground Utilities Fund — This fund was established to account for fees collected from developers for future undergrounding of overhead utilities. Safe Routes to School Program - The Safe Routes to School Program fund is a grant fund for monies provided by the State of California. The state funds are administered through Caltrans as part of the California Department of Health Services" "Safe Routes to School Program" and are available for transportation projects that increase the safety of pedestrians and bicyclists. COPS Hiring Program Grant — This is a multi -year grant awarded by U.S. Department of Justice to provide partial supplementary funding to hire a new sworn officer. The grant must be used to enhance community policing activities. Foothill Boulevard Maintenance Fund - This fund was established to account for funding provided by Cal Trans as part of their relinquishment of Foothill Boulevard to the City of Rancho Cucamonga. This limited funding source will be utilized to repair and maintain portions of Foothill Boulevard. 117 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Special Revenue Funds (Continued) COPS Secure our School Grant Fund — This fund was established to account for the grant money use in partnership with public schools to improve school safety. CA State Library Staff Innovation Grant Fund — This fund was established to account for the grant money awarded by California State Library. The purpose of the grant is to provide training for innovative writing skills for future grant writers. The Big Read Library Grant Fund — This fund was established to account for the grant money receiving from the National Endowment for the Arts. The purpose of the grant is to emphasize a city wide media campaign through guest lectures, group discussions, film showings, and a community theater performance of a designated book. Drink, Drive, Lose Grant Fund - This grant was awarded by the State of California Office of Traffic Safety to provide supplementary funding for overtime costs incurred during sobriety checkpoints. The overall goal of the project is to reduce the number of victims killed and injured as a result of alcohol - involved crashes. Department of Homeland Security Grant Fund - This grant from the State Homeland Security Grant Program is administered by the San Bernardino County Office of Emergency Services. The grant is funded by the Federal Department of Homeland Security. The funds will be utilized to purchase terrorism and weapons of mass destruction (WMDs) response equipment and supplies in conjunction with an appropriate level of training cost funding for national security. There are no matching funds required for this grant. Public Resource Grants Fund - The City had received and will continue to receive from various funding sources for the Healthy Cities concept, which was adopted by the Council in March 2008, as a means of integrating health concerns into a holistic approach to improving the overall quality of life in the community." Proposition 1 B Fund - Proposition 1 B (Prop 1 B) provides state funding to cities and counties to fund the maintenance and improvement of local transportation facilities. The funding is allocated based on population. Henderson /Wardman Drainage Fund - The Henderson /Wardman Drainage fund is a developer impact fee supported fund for the construction of storm drain improvements in the Henderson /Wardman drainage area. Integrated Waste Management Fund — Established to account for AB939 recycling fee revenues from the City's refuse haulers and can only be used for the City's Household Hazardous Waste Disposal program. Assembly Bill 939 is a law that was passed by the State of California that mandates that all cities divert a specified percentage of their solid waste from their landfills in accordance with established deadlines. Federal Grant Fund — Dreier - Initially, this fund was established to account for a $50,000 grant from Congressman David Dreier. The funds were used to begin the preliminary design process for a new senior center facility in Central Park. During FY 2003/04, the grant was supplemented with an additional $804,000 from Congressman Dreier which will be used in conjunction with other funds to construct the new senior center facility in Central Park. 118 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Special Revenue Funds (Continued) Proposition 42 - Traffic Congestion Relief Fund - This fund was established to account for gasoline sales tax revenue received from the State of California for transportation purposes, including city and county street and road repairs and maintenance. Proposition 42, a legislative constitutional amendment, permanently dedicated revenues from this sales tax on gasoline to transportation infrastructure needs. Freedom Courtyard Resource Grant — This fund was established to account for revenues and expenditures strictly to support the operation and construction of the Freedom Courtyard. Justice Assistance Grant Fund - Two Justice Assistance Grants (JAG) were awarded to the Police Department by the United States Department of Justice. The first was in 2005 in the amount of $30,833.00 to purchase police related equipment and technology. The second JAG grant was awarded in 2006 in the amount of $19,514.00. This grant will be used to purchase 14 radar guns for the Police Department's traffic division. This fund accounts for the revenues and expenditures associated with the JAG grants. Homeland Security Grant 2005 Fund - The City was awarded a $147,776 grant from the State Homeland Security Grant Program administered by the San Bernardino County Office of Emergency Services. The grant is funded by the Federal Department of Homeland Security. The funds will be utilized to purchase terrorism and weapons of mass destruction (WMD's) response equipment and supplies in conjunction with an appropriate level of training costs funding for national security. There are no matching funds required for this grant. Used Oil Recycling Program - The California Integrated Waste Management allocates funding to governmental agencies on a population basis. The fund was established to administer the used oil collection programs. The fund must be used specifically for oil recycling collection and educational programs. Library Impact Fee Fund - Established to account for a new type of impact fee for library facilities and materials that should provide enough revenue to cover the cost of maintaining the existing level of service as the City grows. These fees only apply to residential development. Police Impact Fee Fund - Established to account for a new type of impact fee for Police facilities and equipment. This impact fee applies to both residential and non - residential development in the City. Animal Center Impact Fee Fund - Established to account for a new type of impact fee for the Animal Center that should provide enough revenue to cover the cost of maintaining the existing level of service as the City grows. Park Land Acquisition Fund - Established to account for fees collected to acquire park land and to fund neighborhood and community park improvements. 119 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Capital Projects Funds Assessment District 82 -1 Fund - Established to account for the receipt and disbursement of funds used in the construction of streets, storm drainage and utility improvements within the project area. Financing was provided by the sale of bonds under the Refunding Act of 1984 for 1915 Improvement Act Bonds. Assessment District 84 -1 Fund - Established to account for the receipt and disbursement of funds used in the construction and installation of public capital drainage facilities, together with appurtenant work and incidental expenses, to serve and provide drainage protection to property located within Assessment District No. 84 -1 (Day Creek Drainage System). Financing was provided by the sale of bonds under the Mello -Roos Community Facilities Act of 1982. Assessment District 86 -2 Fund - Established to account for the receipt and disbursement of funds used in construction and acquisition of drainage improvements together with appurtenances and appurtenant work, acquisition of real property, if necessary, and incidental expenses within the Assessment District No. 86 -2. Financing was provided by the sale of limited obligation bonds under the Improvement Bond Act of 1915. Community Facilities District 2000 -01 South Etiwanda Fund — Established to account for the receipt and disbursement of funds used in the acquisition and construction of facilities consisting primarily of storm drain, sewer, water, landscaping, park facilities and improvements. Financing was provided by the sale of bonds under the Mello -Roos Community Facilities Act of 1982. Community Facilities District 2000 -03 Rancho Summit Fund — Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Community Facilities District 2001 -01 Fund - This CFD was established to fund the necessary infrastructure (streets, storm drains, sewer, water, landscaping, and traffic signals) integral to the proposed mall located at Foothill Blvd. and the 1 -15 Freeway. The improvements are located south of Base Line Rd., primarily north of Foothill Blvd., primarily east of Day Creek Channel, and west of Etiwanda Ave. Financing was provided by the sale of bonds under the Mello -Roos Community Facilities Act of 1982. Community Facilities 2003 -01 Project Fund — This CFD was established to fund the necessary infrastructure (streets, storm drains, sewer, water, landscaping, and traffic signals) integral to the proposed mall located at Foothill Blvd. and the 1 -15 Freeway. The improvements are generally bordered on the north by Church Street, on the east by Interstate 15, on the south by Arrow Route and on the west by a Southern California Edison easement from Arrow Route north to Foothill Boulevard and by Day Creek Boulevard from Foothill Boulevard north to Church Street. Financing will be provided by the sale of bonds under the Mello -Roos Community Facilities Act of 1982. Public Library Bond Act 2000 Fund — This grant is from funds made available by the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for the construction of the Victoria Gardens Library. Etiwanda Equestrian Facility — Established to account for monies paid by developers for the future construction of an equestrian facility in the Rancho Etiwanda Estates development. Community Facilities District 2004 -01 Rancho Etiwanda Fund — Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to the proposed public financing district. Financing was provided by the sale of bonds under the Mello -Roos Community Facilities Act of 1982. 120 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Capital Projects Funds (Continued) Community Facilities District 2003 -01 Cultural Center Fund - Established to account for the portion of the costs associated with the development of the City's Cultural Arts Center that is being funded by Community Facilities District (CFD) 2003 -01. Financing for the CFD will be provided by the sale of bonds under the Mello -Roos Community Facilities Act of 1982. Community Facilities District 2006 -01 Vintner's Grove Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Community Facilities District 2006 -02 Amador on Route 66 Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. 121 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Revenue Funds 122 Park Gas Tax Recreation Development Beautification Assets: Cash and investments $ 8,171,984 $ 3,229,744 $ 14,180,899 $ 1,664,650 Receivables: Accounts 1,973 35,618 - - Taxes 2 - - - Accrued interest 3,338 1,316 23,857 701 Loans - - - - Grants - - - - Prepaid costs - 31,685 - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 8,177,297 $ 3,298,363 $ 14,204,756 $ 1,665,351 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 983,437 $ 337,601 $ 40,292 $ - Accrued liabilities 48,034 109,964 3,944 - Unearned revenues - 57,544 - - Due to other governments - - - - Due to other funds - - 3,154 Advances from other funds - - 300,000 - Total Liabilities 1,031,471 505,109 344,236 3,154 Deferred Inflows of Resources: Unavailable revenues - 1,471 - 93,407 Total Deferred Inflows of Resources - 1,471 - 93,407 Fund Balances: Nonspendable: Prepaid costs - 31,685 - - Deposits - - - - Land held for resale - - - Notes and loans - - - - Restricted for: Community development projects - - 13,860,520 - Public safety - police - - - - Parks and recreation - 2,760,098 - - Engineering and public works 7,145,826 - - 1,568,790 Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - - - Total Fund Balances 71145,826 2,791,783 13,860,520 1,568,790 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 8,177,297 $ 3,298,363 $ 14,204,756 $ 1,665,351 122 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) Revenue Funds 123 Landscape Lighting Maintenance Pedestrian Districts Districts Transportation Grant Assets: Cash and investments $ 5,231,373 $ 13,225,437 $ 21,217,258 $ 89,960 Receivables: Accounts 38,457 39,425 - 160,938 Taxes 18,483 80,169 - - Accrued interest 2,106 5,674 35,682 - Loans - - - - Grants - - 4,567 Prepaid costs - 750 - - Deposits - - - - Due from other funds - - 5,126 - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 5,290,419 $ 13,351,455 $ 21,258,066 $ 255,465 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 199,113 $ 733,296 $ 2,011,744 $ - Accrued liabilities 3,584 83,426 16,534 - Unearned revenues - - - - Due to other governments - - - Due to other funds 60,110 - 255,649 Advances from other funds - - - - Total Liabilities 262,807 816,722 2,028,278 255,649 Deferred Inflows of Resources: Unavailable revenues - - - 4,567 Total Deferred Inflows of Resources - - 4,567 Fund Balances: Nonspendable: Prepaid costs - 750 - Deposits - - - Land held for resale - - - Notes and loans - - - Restricted for: Community development projects - - - Public safety - police - - - - Parks and recreation - - - - Engineering and public works - - 19,229,788 - Capital improvement projects - - - - Street lighting 5,027,612 - - - Underground utilities - - - Landscape maintenance - 12,533,983 - - Library services - - - Unassigned - - - (4,751) Total Fund Balances 5,027,612 12,534,733 19,229,788 (4,751) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 5,290,419 $ 13,351,455 $ 21,258,066 $ 255,465 123 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Loans Grants Prepaid costs Deposits Due from other funds Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Deposits Land held for resale Notes and loans Restricted for: Community development projects Public safety - police Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances al Revenue Funds Community 672,569 San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage SB 140 $ - $ 681,404 $ 1,452,390 $ 36,693 - 38 - - - 289 609 - 747,808 - - - 527,547 - - - 1,076,211 - - $ 1,452,999 $ 36,693 $ 2,351,566 $ 681,731 $ 57,561 $ 4,392 $ 495,000 $ - 11,140 4,770 - - 747,808 - - 96,585 - - 913,094 9,162 495,000 - 232,246 - - - 232,246 - - 1,076,211 130,015 672,569 957,999 36,693 1,206,226 672,569 957,999 36,693 $ 2,351,566 $ 681,731 $ 1,452,999 $ 36,693 124 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) Revenue Funds 125 South Lower Masi Air Quality Etiwanda Etiwanda Commerce Improvement Drainage Drainage Center Assets: Cash and investments $ 459,483 $ 632,588 $ 596,094 $ 10,758 Receivables: Accounts - - - - Taxes - - - - Accrued interest 181 266 251 4 Loans - - - - Grants 284,205 - - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - 290,304 Total Assets $ 743,869 $ 632,854 $ 596,345 $ 301,066 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 9,955 $ - Accrued liabilities - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 9,955 - - - Deferred Inflows of Resources: Unavailable revenues 200,000 - - - Total Deferred Inflows of Resources 200,000 - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Notes and loans - - - - Restricted for: Community development projects 533,914 - - - Public safety - police - - - - Parks and recreation - - - - Engineering and public works - 632,854 596,345 - Capital improvement projects - - - 301,066 Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - - - Total Fund Balances 533,914 632,854 596,345 301,066 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 743,869 $ 632,854 $ 596,345 $ 301,066 125 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Revenue Funds 126 Proposition Library 84 - Park Bond Asset Measure I Services Act Forfeiture Assets: Cash and investments $ 6,175,391 $ 7,866,154 $ $ 416,521 Receivables: Accounts - 839 - Taxes 334,862 52,692 - Accrued interest 8,958 3,342 173 Loans - - - Grants - - Prepaid costs - 906 Deposits - - Due from other funds - Land held for resale - Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ 6,519,211 $ 7,923,933 $ - $ 416,694 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 103,145 $ 85,683 $ 49,944 $ 5,140 Accrued liabilities 5,728 91,008 - - Unearned revenues - 2,481 Due to other governments - - - Due to other funds - 118,143 Advances from other funds - - - - Total Liabilities 108,873 179,172 168,087 5,140 Deferred Inflows of Resources: Unavailable revenues 83,285 - - - Total Deferred Inflows of Resources 83,285 - Fund Balances: Nonspendable: Prepaid costs - 906 Deposits - - Land held for resale - Notes and loans - - - Restricted for: Community development projects - - - Public safety - police - - 411,554 Parks and recreation - - - Engineering and public works 6,327,053 - Capital improvement projects - 857,276 Street lighting - - Underground utilities - Landscape maintenance - - Library services - 6,886,579 Unassigned - - (168,087) - Total Fund Balances 6,327,053 7,744,761 (168,087) 411,554 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 6,519,211 $ 7,923,933 $ - $ 416,694 126 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) Revenue Funds 127 Used Oil Recycling COPS Drainage CA State Grant Program Grant Facilities Library Assets: Cash and investments $ 15,605 $ 631,624 $ 4,134,114 $ 88,905 Receivables: Accounts - - - - Taxes - - Accrued interest - 1,736 Loans - - - Grants - 49,917 Prepaid costs - - Deposits - Due from other funds - Land held for resale - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 15,605 $ 681,541 $ 4,135,850 $ 88,905 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 42,242 $ 6,925 $ 1,232 Accrued liabilities - - 693 420 Unearned revenues 15,605 - - 45,745 Due to other governments - - Due to other funds - Advances from other funds - - - - Total Liabilities 15,605 42,242 7,618 47,397 Deferred Inflows of Resources: Unavailable revenues - - 5,102 - Total Deferred Inflows of Resources - 5,102 Fund Balances: Nonspendable: Prepaid costs - - Deposits - Land held for resale - Notes and loans - Restricted for: Community development projects - - Public safety - police - 639,299 Parks and recreation - - - Engineering and public works - 4,123,130 Capital improvement projects - - Street lighting - Underground utilities - Landscape maintenance - - Library services - 41,508 Unassigned - - - - Total Fund Balances - 639,299 4,123,130 41,508 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 15,605 $ 681,541 $ 4,135,850 $ 88,905 127 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 128 Special Revenue Funds Library AB 2928 Energy Services & Traffic Litter Efficient & Technologies Congestion Reduction Conservation Act Relief Grant Block Grant Assets: Cash and investments $ 37,063 $ 294,438 $ 67,411 $ 724 Receivables: Accounts - - - - Taxes - - - Accrued interest - - - - Loans - - - 357,020 Grants - - - - Prepaid costs - - - Deposits - - - Due from other funds - - - Land held for resale - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 37,063 $ 294,438 $ 67,411 $ 357,744 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ 6,713 $ - Accrued liabilities - - 189 820 Unearned revenues - - 60,503 - Due to other governments - - - 357,020 Due to other funds - - - - Advances from other funds - - - - Total Liabilities - - 67,405 357,840 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - Fund Balances: Nonspendable: Prepaid costs - - - Deposits - - - Land held for resale - - - Notes and loans - - - - Restricted for: Community development projects - - 6 Public safety - police - - - Parks and recreation - - - Engineering and public works - 294,438 - Capital improvement projects - - - Street lighting - - - Underground utilities - - - Landscape maintenance - - - Library services 37,063 - - - Unassigned - - - (96) Total Fund Balances 37,063 294,438 6 (96) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 37,063 $ 294,438 $ 67,411 $ 357,744 128 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) al Revenue Funds 129 Senior Safe Routes Outreach Underground to School COPS Hiring Grant Utilities Program Program Grant Assets: Cash and investments $ - $ 11,634,402 $ - $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - 19,541 - - Loans - - - - Grants 6,427 - 233,786 6,250 Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 6,427 $ 11,653,943 $ 233,786 $ 6,250 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ 84,402 $ - Accrued liabilities - - 2,476 - Unearned revenues - - - - Due to other governments - - - - Due to other funds 6,427 - 146,908 6,250 Advances from other funds - - - - Total Liabilities 6,427 - 233,786 6,250 Deferred Inflows of Resources: Unavailable revenues 5,267 - 233,786 - Total Deferred Inflows of Resources 5,267 - 233,786 - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Notes and loans - - - - Restricted for: Community development projects - - - - Public safety - police - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - 11,653,943 - - Landscape maintenance - - - - Library services - - - - Unassigned (5,267) - (233,786) - Total Fund Balances (5,267) 11,653,943 (233,786) - Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 6,427 $ 11,653,943 $ 233,786 $ 6,250 129 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 130 Special Revenue Funds CA State COPS Secure Library Staff Foothill Blvd. Our Schools Innovation The Big Read Maintenance Grant Fund Grant Library Grant Assets: Cash and investments $ - $ 12,042 $ 193,427 $ 15,135 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - 92 - Loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ - $ 12,042 $ 193,519 $ 15,135 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ 671 $ - Accrued liabilities - - 5,207 - Unearned revenues - 12,042 163,806 5,134 Due to other governments - - - - Due to other funds 1,413 - - - Advances from other funds - - - - Total Liabilities 1,413 12,042 169,684 5,134 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Notes and loans - - - - Restricted for: Community development projects - - - - Public safety - police - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - 23,835 10,001 Unassigned (1,413) - - - Total Fund Balances (1,413) - 23,835 10,001 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ - $ 12,042 $ 193,519 $ 15,135 130 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) Special Revenue Funds 131 Department of Public Drink, Drive, Homeland Resource Proposition Lose Grant Security Grant Grants 1B Assets: Cash and investments $ 15,351 $ 105,612 $ - $ 237,908 Receivables: Accounts - - 101,292 - Taxes - - - - Accrued interest - - - 100 Loans - - - - Grants - - 89,866 Prepaid costs - 601 - Deposits - - - Due from other funds - - - Land held for resale - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 15,351 $ 106,213 $ 191,158 $ 238,008 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ 157,193 $ Accrued liabilities - - 3,333 Unearned revenues 13,574 84,432 - Due to other governments - - - Due to other funds - - 30,753 Advances from other funds - - - Total Liabilities 13,574 84,432 191,279 Deferred Inflows of Resources: Unavailable revenues - - - Total Deferred Inflows of Resources - - - Fund Balances: Nonspendable: Prepaid costs - 601 - Deposits - - - Land held for resale - - - Notes and loans - - - Restricted for: Community development projects - - - Public safety - police 1,777 21,180 - Parks and recreation - - - - Engineering and public works - - - 238,008 Capital improvement projects - - - - Street lighting - - - Underground utilities - - - Landscape maintenance - - - Library services - - - Unassigned - - (121) - Total Fund Balances 1,777 21,781 (121) 238,008 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 15,351 $ 106,213 $ 191,158 $ 238,008 131 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 132 Special Revenue Funds Proposition Henderson/ Integrated 42 - Traffic Wardman Waste Federal Grant Congestion Drainage Management Fund - Dreier Relief Assets: Cash and investments $ 983,361 $ 2,013,998 $ 13,545 $ 311,693 Receivables: Accounts - - - - Taxes - 394,436 - Accrued interest - 855 169 Loans - - - Grants - - Prepaid costs - - - Deposits - 15,000 - Due from other funds - - - Land held for resale - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 983,361 $ 2,424,289 $ 13,545 $ 311,862 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 5,511 $ 13,545 $ - Accrued liabilities - 27,782 - - Unearned revenues - - - Due to other governments - - Due to other funds - - Advances from other funds - - - - Total Liabilities - 33,293 13,545 - Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - Fund Balances: Nonspendable: Prepaid costs - - - Deposits - 15,000 - Land held for resale - - - Notes and loans - - Restricted for: Community development projects - - Public safety - police - - Parks and recreation - - - Engineering and public works 983,361 2,375,996 311,862 Capital improvement projects - - - Street lighting - - Underground utilities - - Landscape maintenance - - Library services - - Unassigned - - - Total Fund Balances 983,361 2,390,996 - 311,862 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 983,361 $ 2,424,289 $ 13,545 $ 311,862 132 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) 133 Special Revenue Funds Freedom Courtyard Justice Homeland Used Oil Resource Assistance Security Grant Recycling Grants Grant 2005 Program Assets: Cash and investments $ 2,148 $ 30,506 $ - $ 39,116 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Loans - - - - Grants - - 59,482 Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,148 $ 30,506 $ 59,482 $ 39,116 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ 3 Accrued liabilities - - - 820 Unearned revenues 2,063 28,131 - 38,502 Due to other governments - - - - Due to other funds - - 59,482 Advances from other funds - - - - Total Liabilities 2,063 28,131 59,482 39,325 Deferred Inflows of Resources: Unavailable revenues - - 59,482 - Total Deferred Inflows of Resources - - 59,482 Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Notes and loans - - - - Restricted for: Community development projects 85 - - - Public safety - police - 2,375 - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - (59,482) (209) Total Fund Balances 85 2,375 (59,482) (209) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 2,148 $ 30,506 $ 59,482 $ 39,116 133 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Loans Grants Prepaid costs Deposits Due from other funds Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Deposits Land held for resale Notes and loans Restricted for: Community development projects Public safety - police Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Revenue Funds Library Police Impact Animal Center Park Land Impact Fee Fee Impact Fee Acquisition $ 106,880 $ 47,859 $ 23,020 $ 3,220 42 19 9 1 - 47,878 23,029 - - - 3,221 106,922 - V,JLL IV J,VLJ $ 106,922 $ 47,878 $ 23,029 $ 3,221 134 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) 135 Capital Projects Funds CFD 2000 -01 Assessment Assessment Assessment South District 82 -1 District 84 -1 District 86 -2 Etiwanda Assets: Cash and investments $ 12,950 $ 1,104,718 $ - $ 76 Receivables: Accounts - - - - Taxes - - - - Accrued interest 5 465 - - Loans - - - Grants - - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - Land held for resale - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 12,955 $ 1,105,183 $ - $ 76 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable - Accrued liabilities - - - Unearned revenues - - Due to other governments - Due to other funds - 41,128 Advances from other funds - - Total Liabilities - - 41,128 Deferred Inflows of Resources: Unavailable revenues - - Total Deferred Inflows of Resources - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - Land held for resale - - Notes and loans - - Restricted for: Community development projects - - - - Public safety - police - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects 12,955 1,105,183 - 76 Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - (41,128) - Total Fund Balances 12,955 1,105,183 (41,128) 76 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 12,955 $ 1,105,183 $ - $ 76 135 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Projects Funds 136 CFD 2000 -03 Public Library Rancho CFD 2003 -01 Bond Act - Summit CFD 2001 -01 Project Fund 2000 Assets: Cash and investments $ - $ 488,139 $ 5,581 $ 32,664 Receivables: Accounts - - - - Taxes - - - Accrued interest - 206 - Loans - - - Grants - - Prepaid costs - - Deposits - - Due from other funds - - Land held for resale - - - Restricted assets: Cash and investments with fiscal agents - - 169,332 - Total Assets $ - $ 488,345 $ 174,913 $ 32,664 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ $ - $ 6,128 Accrued liabilities - - - Unearned revenues - - 26,534 Due to other governments - - - Due to other funds - - Advances from other funds - - - Total Liabilities - - 32,662 Deferred Inflows of Resources: Unavailable revenues - - - Total Deferred Inflows of Resources - - Fund Balances: Nonspendable: Prepaid costs - - Deposits - - Land held for resale - - Notes and loans - - Restricted for: Community development projects - - Public safety - police - - Parks and recreation - - Engineering and public works - - - - Capital improvement projects - 488,345 174,913 2 Street lighting - - - - Underground utilities - - Landscape maintenance - - Library services - - Unassigned - - - - Total Fund Balances - 488,345 174,913 2 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ - $ 488,345 $ 174,913 $ 32,664 136 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) 137 Capital Projects Funds Etiwanda CFD 2004 -01 CFD 2003 -01 CFD 2006 -01 Equestrian Rancho Cultural Vintner's Facility Etiwanda Center Grove Assets: Cash and investments $ 664,938 $ 5,035 $ $ 1,842 Receivables: Accounts - - - Taxes - - - Accrued interest 279 1 - Loans - - - Grants - - - Prepaid costs - - - Deposits - - - Due from other funds - - - Land held for resale - - - Restricted assets: Cash and investments with fiscal agents - 87,849 184,676 606,871 Total Assets $ 665,217 $ 92,885 $ 184,676 $ 608,713 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ $ - Accrued liabilities - - - Unearned revenues - - - Due to other governments - - - Due to other funds - - 179,628 - Advances from other funds - - - - Total Liabilities - - 179,628 - Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - Fund Balances: Nonspendable: Prepaid costs - - - Deposits - - - Land held for resale - - - Notes and loans - - - Restricted for: Community development projects - - - Public safety - police - - - Parks and recreation - - - Engineering and public works - - - - Capital improvement projects 665,217 92,885 5,048 608,713 Street lighting - - - - Underground utilities - - - Landscape maintenance - - - Library services - - - Unassigned - - - - Total Fund Balances 665,217 92,885 5,048 608,713 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 665,217 $ 92,885 $ 184,676 $ 608,713 137 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Capital Project Funds Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable CFD 2006 -02 Total Nonmajor - 419,872 Amador on Governmental Due to other governments Route 66 Funds Assets: Advances from other funds - 300,000 Cash and investments $ 5,988 $ 108,719,819 Receivables: Unavailable revenues - 918,613 Accounts - 378,580 Taxes - 880,644 Accrued interest 2 110,269 Loans - 1,104,828 Grants - 1,262,047 Prepaid costs - 33,942 Deposits - 15,000 Due from other funds - 5,126 Land held for resale - 1,076,211 Restricted assets: Underground utilities - 11,653,943 Cash and investments with fiscal agents 1,964 1,340,996 Total Assets $ 7,954 $ 114,927,462 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 5,440,868 Accrued liabilities - 419,872 Unearned revenues - 556,096 Due to other governments - 1,104,828 Due to other funds - 1,005,630 Advances from other funds - 300,000 Total Liabilities - 8,827,294 Deferred Inflows of Resources: Unavailable revenues - 918,613 Total Deferred Inflows of Resources - 918,613 Fund Balances: Nonspendable: Prepaid costs - 33,942 Deposits - 15,000 Land held for resale - 1,076,211 Notes and loans - - Restricted for: Community development projects - 15,197,109 Public safety - police - 1,147,092 Parks and recreation - 2,763,319 Engineering and public works - 43,864,144 Capital improvement projects 7,954 5,277,632 Street lighting - 5,027,612 Underground utilities - 11,653,943 Landscape maintenance - 12,533,983 Library services - 7,105,908 Unassigned - (514,340) Total Fund Balances 7,954 105,181,555 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 7,954 $ 114,927,462 138 THIS PAGE INTENTIONALLY LEFT BLANK 139 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Special Revenue Funds 140 Park Gas Tax Recreation Development Beautification Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 4,478,743 - 17,365 - Charges for services - 2,694,882 - - Use of money and property 75,390 1,112,443 142,391 15,479 Contributions - 278,167 - - Developer participation - - 2,438,815 323,152 Miscellaneous 3,927 175,241 - - Total Revenues 4,558,060 4,260,733 2,598,571 338,631 Expenditures: Current: General government - - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - - 79,014 - Community services - 3,983,672 - - Engineering and public works 2,540,259 - - 670 Capital outlay 1,684,380 - 162,838 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 4,224,639 3,983,672 241,852 670 Excess (Deficiency) of Revenues Over (Under) Expenditures 333,421 277,061 2,356,719 337,961 Other Financing Sources (Uses): Transfers in - - - - Transfers out (431,390) - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) (431,390) - - - Net Change in Fund Balances (97,969) 277,061 2,356,719 337,961 Fund Balances, Beginning of Year 7,243,795 2,514,722 11,503,801 1,230,829 Fund Balances, End of Year $ 7,145,826 $ 2,791,783 $ 13,860,520 $ 1,568,790 140 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) al Revenue Funds Other Financing Sources (Uses): Transfers in Transfers out Contributions from other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 431,390 298,930 - - 431,390 298,930 (202,304) 467,584 665,816 86,209 5,229,916 12,067,149 18,563,972 (90,960) $ 5,027,612 $ 12,534,733 $ 19,229,788 $ (4,751) 141 Landscape Lighting Maintenance Pedestrian Districts Districts Transportation Grant Revenues: Taxes $ 2,025,834 $ 10,086,142 $ - $ - Licenses and permits - 302,550 - - Intergovernmental - 164,832 2,542 250,899 Charges for services - 14,895 - - Use of money and property 50,400 170,355 256,255 - Contributions - 50,000 - - Developer participation 1,638 - 7,609,389 - Miscellaneous - 1,844 110,145 - Total Revenues 2,077,872 10,790,618 7,978,331 250,899 Expenditures: Current: General government 2,711,566 - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - 9,904,511 - - Community services - - - - Engineering and public works - - 958,769 - Capital outlay - 717,453 6,353,746 164,690 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,711,566 10,621,964 7,312,515 164,690 Excess (Deficiency) of Revenues Over (Under) Expenditures (633,694) 168,654 665,816 86,209 Other Financing Sources (Uses): Transfers in Transfers out Contributions from other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 431,390 298,930 - - 431,390 298,930 (202,304) 467,584 665,816 86,209 5,229,916 12,067,149 18,563,972 (90,960) $ 5,027,612 $ 12,534,733 $ 19,229,788 $ (4,751) 141 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Special Revenue Funds Community San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage SB 140 Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 823,267 - - - Charges for services - - - Use of money and property - 7,252 14,711 3 Contributions - - - - Developer participation - - 289,207 - Miscellaneous 60,823 998,760 - - Total Revenues 884,090 1,006,012 303,918 3 Expenditures: Current: General government - 1,132,147 - - Public safety - police - - - - Public safety - fire protection - - - - Community development 422,778 - - - Community services - - - - Engineering and public works - - 550 - Capital outlay 323,538 - 617,978 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 746,316 1,132,147 618,528 - Excess (Deficiency) of Revenues Over (Under) Expenditures 137,774 (126,135) (314,610) 3 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 137,774 (126,135) (314,610) 3 Fund Balances, Beginning of Year 1,068,452 798,704 1,272,609 36,690 Fund Balances, End of Year $ 1,206,226 $ 672,569 $ 957,999 $ 36,693 142 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) al Revenue Funds 143 South Lower Masi Air Quality Etiwanda Etiwanda Commerce Improvement Drainage Drainage Center Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 296,993 - - - Charges for services - - - - Use of money and property 4,194 5,112 6,277 98 Contributions - - - - Developer participation - 321,585 63,754 - Miscellaneous - - - - Total Revenues 301,187 326,697 70,031 98 Expenditures: Current: General government 20,594 - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - 90 140 - Capital outlay 240,995 - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 261,589 90 140 - Excess (Deficiency) of Revenues Over (Under) Expenditures 39,598 326,607 69,891 98 Other Financing Sources (Uses): Transfers in 19,464 - - - Transfers out - - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) 19,464 - - - Net Change in Fund Balances 59,062 326,607 69,891 98 Fund Balances, Beginning of Year 474,852 306,247 526,454 300,968 Fund Balances, End of Year $ 533,914 $ 632,854 $ 596,345 $ 301,066 143 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 144 Special Revenue Funds Proposition Library 84 - Park Bond Asset Measure I Services Act Forfeiture Revenues: Taxes $ - $ 3,739,719 $ - $ - Licenses and permits - - - - Intergovernmental 2,549,511 8,170 30,346 15,279 Charges for services - 427,740 - - Use of money and property 69,229 71,045 - 4,880 Contributions - 155,000 - - Developer participation - - - - Miscellaneous - - - - Total Revenues 2,618,740 4,401,674 30,346 20,159 Expenditures: Current: General government - - - - Public safety - police - - - 48,620 Public safety - fire protection - - - - Community development - - 16,989 - Community services - 3,778,740 - - Engineering and public works 1,249,867 - - - Capital outlay 1,509,299 156,259 177,067 13,780 Debt service: Principal retirement - 8,093 - - Interest and fiscal charges - 2,049 - - Total Expenditures 2,759,166 3,945,141 194,056 62,400 Excess (Deficiency) of Revenues Over (Under) Expenditures (140,426) 456,533 (163,710) (42,241) Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (140,426) 456,533 (163,710) (42,241) Fund Balances, Beginning of Year 6,467,479 7,288,228 (4,377) 453,795 Fund Balances, End of Year $ 6,327,053 $ 7,744,761 $ (168,087) $ 411,554 144 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Contributions from other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year ial Revenue Funds Used Oil Recycling COPS Drainage CA State Grant Program Grant Facilities Library - 280,162 - 102,057 - 46 44,636 7 - 932,012 - 280,208 976,648 102,064 108,876 - - - - - 61,000 - - 75,503 - - 198,682 928,432 5,383 aui,330 -1,uus,as3 oo,.sas - (27,350) (27,287) 35,681 (27,350) (27,287) 35,681 666,649 4,150,417 5,827 $ - $ 639,299 $ 4,123,130 $ 41,508 145 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 146 Special Revenue Funds Library AB 2928 Energy Services & Traffic Litter Efficient & Technologies Congestion Reduction Conservation Act Relief Grant Block Grant Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - 49,810 - Charges for services - - - Use of money and property 3 22 5 - Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 3 22 49,815 - Expenditures: Current: General government - - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - 90 49,822 - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 90 49,822 - Excess (Deficiency) of Revenues Over (Under) Expenditures 3 (68) (7) - Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 3 (68) (7) - Fund Balances, Beginning of Year 37,060 294,506 13 (96) Fund Balances, End of Year $ 37,063 $ 294,438 $ 6 $ (96) 146 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Contributions from other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year al Revenue Funds Senior Safe Routes Outreach Underground to School COPS Hiring Grant Utilities Program Program Grant 5,768 - 269,455 32,500 - 133,030 - - - 127,371 - - 5,fbd ZbU,4U'I ZbU,455 31,5UU - - - 157,500 7,010 - - - - 12,950 161,150 - 7,010 12,950 161,150 157,500 (1,242) 247,451 108,305 (125,000) 125,000 125,000 (1,242) 247,451 108,305 - (4,025) 11,406,492 (342,091) - $ (1,267) $ 11,653,943 $ (233,786) $ - 147 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Contributions from other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds CA State COPS Secure Library Staff Foothill Blvd. Our Schools Innovation The Big Read Maintenance Grant Fund Grant Library Grant - - 176,758 20,680 - - 2,831 1 179,589 20,681 - - 176,758 20,080 1,770 - - - 1, //V - 1 /V, /JO LV,VOV (1,770) - 2,831 601 (1,770) - 2,831 601 357 - 21,004 9,400 $ (1,413) $ - $ 23,835 $ 10,001 148 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) al Revenue Funds 149 Department of Public Drink, Drive, Homeland Resource Proposition Lose Grant Security Grant Grants 1B Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - 68,895 73,168 - Charges for services - - - - Use of money and property - 8 - 2,486 Contributions - - 243,590 - Developer participation - - - - Miscellaneous - - 525 - Total Revenues - 68,903 317,283 2,486 Expenditures: Current: General government - - 344,642 - Public safety - police - - - - Public safety - fire protection - 47,122 - - Community development - - - 70 Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 47,122 344,642 70 Excess (Deficiency) of Revenues Over (Under) Expenditures - 21,781 (27,359) 2,416 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - 21,781 (27,359) 2,416 Fund Balances, Beginning of Year 1,777 - 27,238 235,592 Fund Balances, End of Year $ 1,777 $ 21,781 $ (121) $ 238,008 149 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Special Revenue Funds Proposition Henderson/ Integrated 42 - Traffic Wardman Waste Federal Grant Congestion Drainage Management Fund - Dreier Relief Revenues: Taxes $ - $ 1,181,580 $ - $ - Licenses and permits - 950 - - Intergovernmental - - - - Charges for services - - - Use of money and property 72 19,966 - 3,425 Contributions - - - - Developer participation 62,464 - - - Miscellaneous - 29,944 - - Total Revenues 62,536 1,232,440 - 3,425 Expenditures: Current: General government - - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - 1,129,829 - 450 Capital outlay - 2,180 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 1,132,009 - 450 Excess (Deficiency) of Revenues Over (Under) Expenditures 62,536 100,431 - 2,975 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 62,536 100,431 - 2,975 Fund Balances, Beginning of Year 920,825 2,290,565 - 308,887 Fund Balances, End of Year $ 983,361 $ 2,390,996 $ - $ 311,862 150 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) al Revenue Funds 151 Freedom Courtyard Justice Homeland Used Oil Resource Assistance Security Grant Recycling Grants Grant 2005 Program Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - 15,584 28,979 9,230 Charges for services - - - - Use of money and property 60 (3) - (160) Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 60 15,581 28,979 9,070 Expenditures: Current: General government - - - - Public safety - police - 15,584 9,120 - Public safety - fire protection - - - - Community development - - - 2,733 Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 15,584 9,120 2,733 Excess (Deficiency) of Revenues Over (Under) Expenditures 60 (3) 19,859 6,337 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 60 (3) 19,859 6,337 Fund Balances, Beginning of Year 25 2,378 (79,341) (6,546) Fund Balances, End of Year $ 85 $ 2,375 $ (59,482) $ (209) 151 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Special Revenue Funds Library Impact Police Impact Animal Center Park Land Fee Fee Impact Fee Acquisition Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - - - Charges for services 106,649 47,769 22,974 Use of money and property 273 109 55 - Contributions - - - - Developer participation - - - 3,221 Miscellaneous - - - - Total Revenues 106,922 47,878 23,029 3,221 Expenditures: Current: General government - - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures 106,922 47,878 23,029 3,221 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 106,922 47,878 23,029 3,221 Fund Balances, Beginning of Year - - - - Fund Balances, End of Year $ 106,922 $ 47,878 $ 23,029 $ 3,221 152 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) Capital Projects Funds CFD 2000 -01 Assessment Assessment Assessment South Revenues: Taxes $ - $ - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - Use of money and property 119 11,562 - - Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 119 11,562 - - Expenditures: Current: General government - 2,420 - - Public safety - police - - - - Public safety - fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 2,420 - - Excess (Deficiency) of Revenues Over (Under) Expenditures 119 9,142 - - Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Contributions from other governments - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 119 9,142 - - Fund Balances, Beginning of Year 12,836 1,096,041 (41,128) 76 Fund Balances, End of Year $ 12,955 $ 1,105,183 $ (41,128) $ 76 153 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Contributions from other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year CFD 2000 -03 Rancho Capital Projects Funds Public Library CFD 2003 -01 Bond Act - CFD 2001 -01 Project Fund 5,093 17 (5) - 140 - - 140 - 4,953 17 (5) (19,087) - - - (19,087) - - - (19,087) 4,953 17 (5) 19,087 483,392 174,896 7 $ - $ 488,345 $ 174,913 $ 2 154 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Contributions from other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Capital Projects Funds Etiwanda CFD 2004 -01 CFD 2003 -01 CFD 2006 -01 Equestrian Rancho Cultural Vintner's Facility Etiwanda Center Grove 6,969 57 19 59 6.000 - - - 12,969 57 19 59 - 99,971 - - - 99,971 - - 12,969 (99,914) 19 59 12,969 (99,914) 19 59 652,248 192,799 5,029 608,654 $ 665,217 $ 92,885 $ 5,048 $ 608,713 155 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Contributions from other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 156 Capital Project Funds CFD 2006 -02 Amador on 47 47 Total Nonmajor Governmental $ 17,033,275 303,500 9,770,993 3,447,939 2,230,664 726,757 12,051,237 1,381,209 46,945,574 4,211,369 339,700 47,122 10,426,235 8,027,260 6,281,880 13,256,700 8,093 2,049 42,600,408 4,345,166 874,784 (431,390) (19,087) 424,307 47 4,769,473 7,907 100,412,082 $ 7,954 $ 105,181,555 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) GAS TAX YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Budget Original $ 7,243,795 Amounts Actual Final Amounts $ 7,243,795 $ 7,243,795 Variance with Final Budget Positive (Negative) 4,469,450 5,070,350 4,478,743 (591,607) 58,910 79,400 75,390 (4,010) - - 3,927 3,927 11,772,155 12,393,545 11,801,855 (591,690) 2,640,640 2,734,460 2,553,250 181,210 2,050,640 3,171,960 2,509,730 662,230 322,490 431,390 431,390 - 5,013,770 6,337,810 5,494,370 843,440 $ 6,758,385 $ 6,055,735 157 6,307,485 $ 251,750 WIR '1d 1 $ 7,145,826 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) RECREATION YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Charges for services Use of money and property Contributions Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Community services Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) $2,294,082 $ 2,431,462 158 2,770,959 $ 339,497 9n R9d $ 2,791,783 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $2,514,722 $ 2,514,722 $ 2,514,722 $ - 2,950,150 2,781,010 2,694,882 (86,128) 930,680 947,040 1,112,443 165,403 282,580 279,900 278,167 (1,733) 203,600 202,410 175,241 (27,169) 6,881,732 6,725,082 6,775,455 50,373 4,558,650 4,293,620 4,004,496 289,124 29,000 - - - 4,587,650 4,293,620 4,004,496 289,124 $2,294,082 $ 2,431,462 158 2,770,959 $ 339,497 9n R9d $ 2,791,783 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PARK DEVELOPMENT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Variance with $11,764,651 $ 12,673,281 159 13,841,967 $ 1,168,686 18,553 $13,860,520 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $11,503,801 $ 11,503,801 $11,503,801 $ - - 17,370 17,365 (5) 115,650 141,260 142,391 1,131 693,030 1,511,000 2,438,815 927,815 12,312,481 13,173,431 14,102,372 928,941 135,580 86,859 86,809 50 412,250 413,291 173,596 239,695 547,830 500,150 260,405 239,745 $11,764,651 $ 12,673,281 159 13,841,967 $ 1,168,686 18,553 $13,860,520 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) BEAUTIFICATION YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 670 670 400,000 400,000 400,670 400,670 $ 840,279 $ 1,077,169 160 670 - - 400,000 670 400,000 1,568,790 $ 491,621 a 1,300,1UU Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $1,230,829 $ 1,230,829 $ 1,230,829 $ - 10,120 16,010 15,479 (531) - 231,000 323,152 92,152 1,240,949 1,477,839 1,569,460 91,621 670 670 400,000 400,000 400,670 400,670 $ 840,279 $ 1,077,169 160 670 - - 400,000 670 400,000 1,568,790 $ 491,621 a 1,300,1UU CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIGHTING DISTRICTS YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Use of money and property Developer participation Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances $5,215,556 $ 5,192,826 5,027,612 $ (165,214) Budgetary Fund Balance, June 30 (GAAP Basis) $ 5,027,612 161 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $5,229,916 $ 5,229,916 $ 5,229,916 $ - 1,985,830 2,025,400 2,025,834 434 48,660 57,240 50,400 (6,840) 2,920 1,350 1,638 288 322,490 431,390 431,390 - 7,589,816 7,745,296 7,739,178 (6,118) 2,374,260 2,552,470 2,711,566 (159,096) 2,374,260 2,552,470 2,711,566 (159,096) $5,215,556 $ 5,192,826 5,027,612 $ (165,214) Budgetary Fund Balance, June 30 (GAAP Basis) $ 5,027,612 161 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LANDSCAPE MAINTENANCE DISTRICTS YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Miscellaneous Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 162 333,231 $12,534,733 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $12,067,149 $12,067,149 $12,067,149 $ - 9,931,040 10,069,080 10,086,142 17,062 234,540 270,000 302,550 32,550 - 164,830 164,832 2 - 15,100 14,895 (205) 131,340 173,910 170,355 (3,555) 50,000 50,000 50,000 - 1,240 2,540 1,844 (696) 301,440 298,930 298,930 - 22,716,749 23,111,539 23,156,697 45,158 10,903,620 11,453,030 10,206,215 1,246,815 648,070 782,480 748,980 33,500 11,551,690 12,235,510 10,955,195 1,280,315 $11,165,059 $10,876,029 12,201,502 $ 1,325,473 162 333,231 $12,534,733 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) TRANSPORTATION YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Developer participation Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Budget Amounts Actual Original Final Amounts $18,563,972 $18,563,972 $18,563,972 Variance with Final Budget Positive (Negative) - 2,540 2,542 2 163,480 266,780 256,255 (10,525) 750,000 6,703,490 7,609,389 905,899 - 83,450 110,145 26,695 19,477,452 25,620,232 26,542,303 922,071 1,098,130 1,046,010 958,769 87,241 2,268,000 8,793,770 7,651,206 1,142,564 3,366,130 9,839,780 8,609,975 1,229,805 $16,111,322 $15,780,452 163 17,932,328 $ 2,151,876 fiflZ!ti1Gfo1 $19,229,788 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PEDESTRIAN GRANT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Budget Amounts Actual Original Final Amounts $ (90,960) $ (90,960) $ (90,960) 250,899 (90,960) (90,960) 159,939 Variance with Final Budget Positive (Negative) 250,899 250,899 74,600 246,080 231,714 14,366 74,600 246,080 231,714 14,366 $ (165,560) $ (337,040) (71,775) $ 265,265 67,024 $ (4,751) 164 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2015 165 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $1,068,452 $ 1,068,452 $ 1,068,452 $ - Resources (Inflows): Intergovernmental 862,700 862,700 823,267 (39,433) Miscellaneous 350,000 350,000 60,823 (289,177) Amounts Available for Appropriations 2,281,152 2,281,152 1,952,542 (328,610) Charges to Appropriation (Outflow): Community development 438,800 423,970 422,778 1,192 Capital outlay 939,560 954,390 323,538 630,852 Total Charges to Appropriations 1,378,360 1,378,360 746,316 632,044 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 902,792 $ 902,792 1,206,226 $ 303,434 Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 1,206,226 165 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT ADMINISTRATION YEAR ENDED JUNE 30, 2015 .^ Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 798,704 $ 798,704 $ 798,704 $ - Resources (Inflows): Use of money and property 7,990 8,110 7,252 (858) Miscellaneous 1,049,170 1,049,170 998,760 (50,410) Amounts Available for Appropriations 1,855,864 1,855,984 1,804,716 (51,268) Charges to Appropriation (Outflow): General government 1,132,020 1,155,270 1,132,147 23,123 Total Charges to Appropriations 1,132,020 1,155,270 1,132,147 23,123 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 723,844 $ 700,714 672,569 $ (28,145) Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 672,569 .^ CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAN SEVAINE / ETIWANDA DRAINAGE YEAR ENDED JUNE 30, 2015 167 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $1,272,609 $ 1,272,609 $ 1,272,609 $ - Resources (Inflows): Use of money and property 13,410 15,760 14,711 (1,049) Developer participation 30,000 299,790 289,207 (10,583) Amounts Available for Appropriations 1,316,019 1,588,159 1,576,527 (11,632) Charges to Appropriation (Outflow): Engineering and public works 550 550 550 - Capital outlay - 617,980 617,978 2 Total Charges to Appropriations 550 618,530 618,528 2 Budgetary Fund Balance, June 30 (Budgetary Basis) $1,315,469 $ 969,629 957,999 $ (11,630) Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 957,999 167 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) $ 678,852 $ 322,192 168 424,221 $ 102,029 109,693 $ 533,914 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 474,852 $ 474,852 $ 474,852 $ - 224,730 209,940 296,993 87,053 4,890 4,490 4,194 (296) - 19,470 19,464 (6) 704,472 708,752 795,503 86,751 25,620 24,410 21,914 2,496 - 362,150 349,368 12,782 25,620 386,560 371,282 15,278 $ 678,852 $ 322,192 168 424,221 $ 102,029 109,693 $ 533,914 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SOUTH ETIWANDA DRAINAGE YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 90 90 90 90 $ 309,227 $ 609,877 169 90 - 90 - 632,854 $ 22,977 $ 632,854 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 306,247 $ 306,247 $ 306,247 $ - 3,070 4,740 5,112 372 - 298,980 321,585 22,605 309,317 609,967 632,944 22,977 90 90 90 90 $ 309,227 $ 609,877 169 90 - 90 - 632,854 $ 22,977 $ 632,854 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LOWER ETIWANDA DRAINAGE YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 140 140 140 140 $ 531,544 $ 596,854 170 140 - 140 - 596,345 $ (509) $ 596,345 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 526,454 $ 526,454 $ 526,454 $ - 5,230 6,790 6,277 (513) - 63,750 63,754 4 531,684 596,994 596,485 (509) 140 140 140 140 $ 531,544 $ 596,854 170 140 - 140 - 596,345 $ (509) $ 596,345 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) MASI COMMERCE CENTER YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 171 $ 301,066 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 300,968 $ 300,968 $ 300,968 $ - 100 120 98 (22) 301,068 301,088 301,066 (22) $ 301,068 $ 301,088 301,066 $ (22) 171 $ 301,066 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) MEASUREI YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) $6,180,619 $ 5,469,119 172 5,767,041 $ 297,922 560,012 $ 6,327,053 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 6,467,479 $ 6,467,479 $ 6,467,479 $ - 2,621,000 2,501,660 2,549,511 47,851 52,910 72,970 69,229 (3,741) 9,141,389 9,042,109 9,086,219 44,110 1,207,270 1,271,540 1,275,848 (4,308) 1,753,500 2,301,450 2,043,330 258,120 2,960,770 3,572,990 3,319,178 253,812 $6,180,619 $ 5,469,119 172 5,767,041 $ 297,922 560,012 $ 6,327,053 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIBRARY SERVICES YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Intergovernmental Charges for services Use of money and property Contributions Miscellaneous Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Community services Capital outlay Debt service: Principal retirement Interest and fiscal charges Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 173 53,593 $ 7,744,761 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $7,288,228 $ 7,288,228 $ 7,288,228 $ - 3,500,780 3,706,312 3,739,719 33,407 15,000 20,000 8,170 (11,830) 387,500 387,800 427,740 39,940 48,800 72,980 71,045 (1,935) 150,000 140,000 155,000 15,000 420 420 - (420) - 2,600,000 - (2,600,000) 11,390,728 14,215,740 11,689,902 (2,525,838) 4,211,520 4,243,220 3,779,992 463,228 220,000 220,000 208,600 11,400 10,500 11,050 8,093 2,957 - - 2,049 (2,049) - 2,600,000 - 2,600,000 4,442,020 7,074,270 3,998,734 3,075,536 $6,948,708 $ 7,141,470 7,691,168 $ 549,698 173 53,593 $ 7,744,761 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 84 - PARK BOND ACT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Budget Amounts Original Final $ (4,377) $ (4,377) Actual Amounts $ (4,377) Variance with Final Budget Positive (Negative) 283,500 390,290 30,346 (359,944) 279,123 385,913 25,969 (359,944) 5,000 38,720 27,912 10,808 283,500 351,570 351,564 6 288,500 390,290 379,476 10,814 $ (9,377) $ (4,377) (353,507) $ (349,130) 174 185,420 $ (168,087) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSET FORFEITURE YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety - Police Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 175 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 453,795 $ 453,795 $ 453,795 $ - - 15,280 15,279 (1) 1,160 4,420 4,880 460 454,955 473,495 473,954 459 48,950 48,950 48,620 330 131,580 27,770 27,559 211 180,530 76,720 76,179 541 $ 274,425 $ 396,775 397,775 $ 1,000 13,779 $ 411,554 175 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COPS PROGRAM GRANT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety - Police Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 176 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 666,649 $ 666,649 $ 666,649 $ - 200,000 200,000 280,162 80,162 - - 46 46 866,649 866,649 946,857 80,208 201,470 139,480 108,876 30,604 70,000 235,120 235,117 3 271,470 374,600 343,993 30,607 $ 595,179 $ 492,049 602,864 $ 110,815 36,435 $ 639,299 176 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) DRAINAGE FACILITIES YEAR ENDED JUNE 30, 2015 177 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $4,150,417 $ 4,150,417 $ 4,150,417 $ - Resources (Inflows): Use of money and property 38,820 49,250 44,636 (4,614) Developer participation 280,000 1,087,550 932,012 (155,538) Amounts Available for Appropriations 4,469,237 5,287,217 5,127,065 (160,152) Charges to Appropriation (Outflow): Engineering and public works 101,050 98,000 75,503 22,497 Capital outlay 150,000 1,039,150 942,754 96,396 Total Charges to Appropriations 251,050 1,137,150 1,018,257 118,893 Budgetary Fund Balance, June 30 (Budgetary Basis) $4,218,187 $ 4,150,067 4,108,808 $ (41,259) Encumbrances 14,322 Budgetary Fund Balance, June 30 (GAAP Basis) $ 4,123,130 177 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CA STATE LIBRARY YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community services Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) $ 41,508 178 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 5,827 $ 5,827 $ 5,827 $ - - 108,430 102,057 (6,373) - - 7 7 5,827 114,257 107,891 (6,366) 18,520 103,040 61,000 42,040 - 5,390 5,383 7 18,520 108,430 66,383 42,047 $ (12,693) $ 5,827 41,508 $ 35,681 Budgetary Fund Balance, June 30 (GAAP Basis) $ 41,508 178 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) AB 2928 TRAFFIC CONGESTION RELIEF YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 179 Budget Amounts Original Final $ 294,506 $ 294,506 Variance with Final Budget Actual Positive Amounts (Negative) $ 294,506 $ - - - 22 22 294,506 294,506 294,528 22 90 90 90 - 90 90 90 - $ 294,416 $ 294,416 294,438 $ 22 $ 294,438 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LITTER REDUCTION GRANT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 180 $ 6 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 13 $ 13 $ 13 $ - 44,300 54,050 49,810 (4,240) - - 5 5 44,313 54,063 49,828 (4,235) 44,250 54,050 49,822 4,228 44,250 54,050 49,822 4,228 $ 63 $ 13 6 $ (7) 180 $ 6 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SENIOR OUTREACH GRANT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Parks and recreation Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 181 % to,col) Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (4,025) $ (4,025) $ (4,025) $ - 6,920 6,920 5,768 (1,152) 2,895 2,895 1,743 (1,152) 7,010 7,010 7,010 - 7,010 7,010 7,010 - $ (4,115) $ (4,115) (5,267) $ (1,152) 181 % to,col) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) UNDERGROUND UTILITIES YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Charges for services Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Budget Original $11,406,492 Amounts Actual Final Amounts $ 11,406,492 $11,406,492 Variance with Final Budget Positive (Negative) 100,000 50,000 133,030 83,030 108,920 132,130 127,371 (4,759) 11,615,412 11,588,622 11,666,893 78,271 12,950 12,950 12,950 - 655,570 100,000 - 100,000 668,520 112,950 12,950 100,000 $10,946,892 $ 11,475,672 11,653,943 $ 178,271 182 $11,653,943 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAFE ROUTES TO SCHOOL PROGRAM YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (342,091) $ (342,091) $ (342,091) $ - 344,010 269,455 (74,555) (342,091) 1,919 (72,636) (74,555) 243,700 269,070 161,150 107,920 90,800 90,800 - 90,800 334,500 359,870 161,150 198,720 $ (676,591) $ (357,951) (233,786) $ 124,165 Budgetary Fund Balance, June 30 (GAAP Basis) $ (233,786) 183 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COPS HIRING PROGRAM GRANT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) $ (820) $ - 184 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 39,720 32,500 32,500 - 116,960 125,000 125,000 - 156,680 157,500 157,500 - 157,500 157,500 157,500 - 157,500 157,500 157,500 - $ (820) $ - 184 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) FOOTHILL BLVD. MAINTENANCE YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 185 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 1,770 1,770 1,770 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CA STATE LIBRARY STAFF INNOVATION FUND GRANT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Parks and recreation Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) $ (47,186) $ 21,004 :: 23,835 $ 2,831 $ 23,835 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 21,004 $ 21,004 $ 21,004 $ - - 196,820 176,758 (20,062) - 3,140 2,831 (309) 21,004 220,964 200,593 (20,371) 68,190 199,960 176,758 23,202 68,190 199,960 176,758 23,202 $ (47,186) $ 21,004 :: 23,835 $ 2,831 $ 23,835 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) THE BIG READ LIBRARY GRANT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Parks and recreation Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Variance with Final Budget Budget Amounts Actual Original Final Amounts $ 9,400 $ 9,400 $ 9,400 $ - 20,090 20,680 - - 1 9,400 29,490 30,081 20,080 20,090 20,080 20,080 20,090 20,080 $ (10,680) $ 9,400 10,001 $ 187 Positive (Negative) 590 1 591 10 10 601 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) DEPARTMENT OF HOMELAND SECURITY GRANT YEAR ENDED JUNE 30, 2015 188 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental 49,760 56,070 68,895 12,825 Use of money and property - - 8 8 Amounts Available for Appropriations 49,760 56,070 68,903 12,833 Charges to Appropriation (Outflow): Public safety - fire protection 49,760 36,360 47,122 (10,762) Total Charges to Appropriations 49,760 36,360 47,122 (10,762) Budgetary Fund Balance, June 30 (Budgetary Basis) $ - $ 19,710 21,781 $ 2,071 Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 21,781 188 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PUBLIC RESOURCE GRANTS YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Contributions Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 189 :1) (IZI) Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 27,238 $ 27,238 $ 27,238 $ - 63,170 63,170 73,168 9,998 332,110 332,110 243,590 (88,520) - - 525 525 422,518 422,518 344,521 (77,997) 407,770 436,200 344,642 91,558 407,770 436,200 344,642 91,558 $ 14,748 $ (13,682) (121) $ 13,561 189 :1) (IZI) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 1B YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) fu fu $ 237,882 $ 238,252 190 70 - Z- 50'uuo zo tL44) .p LJO,VVO Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 235,592 $ 235,592 $ 235,592 $ - 2,360 2,730 2,486 (244) 237,952 238,322 238,078 (244) fu fu $ 237,882 $ 238,252 190 70 - Z- 50'uuo zo tL44) .p LJO,VVO CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) INTEGRATED WASTE MANAGEMENT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Licenses and permits Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 191 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $2,290,565 $ 2,290,565 $ 2,290,565 $ - 1,137,190 1,249,000 1,181,580 (67,420) - 1,500 950 (550) 17,340 21,260 19,966 (1,294) - 24,000 29,944 5,944 3,445,095 3,586,325 3,523,005 (63,320) 1,165,160 1,228,440 1,132,173 96,267 5,000 5,000 5,000 - 1,170,160 1,233,440 1,137,173 96,267 $2,274,935 $ 2,352,885 2,385,832 $ 32,947 5,164 $ 2,390,996 191 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 42 - TRAFFIC CONGESTION MITIGATION YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 308,887 $ 308,887 $ 308,887 $ - Resources (inflows): Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 5,280 3,640 3,425 (215) - 89,960 - (89,960) 314,167 402,487 312,312 (90,175) 450 450 450 109,000 109,000 109,000 109,450 109,450 109,450 $ 204,717 $ 293,037 202,862 109,000 $ 311,862 192 $ (90,175) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) FREEDOM COURTYARD RESOURCE GRANT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Budget Amounts Original Final $ 25 $ 25 Variance with Final Budget _ Actual Positive _ Amounts (Negative) 25 $ 25 $ - 45 $ 25 $ 45 193 85 40 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30, 2015 194 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 2,378 $ 2,378 $ 2,378 $ - Resources (Inflows): Intergovernmental 23,460 23,460 15,584 (7,876) Use of money and property 70 - (3) (3) Amounts Available for Appropriations 25,908 25,838 17,959 (7,879) Charges to Appropriation (Outflow): Public safety 110 15,610 15,584 26 Capital outlay 23,460 - - - Total Charges to Appropriations 23,570 15,610 15,584 26 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 2,338 $ 10,228 2,375 $ (7,853) Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 2,375 194 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HOMELAND SECURITY GRANT 2005 YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (79,341) $ (79,341) $ (79,341) $ - t1y,s41) (Iv,cc1) Pv,aoc) iy,oDy 20 9,120 9,120 - zu y,lzu y,lzu - $ (79,361) $ (79,341) (59,482) $ 19,859 195 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) USED OIL RECYCLING PROGRAM YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Public works Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) $ (209) Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (6,546) $ (6,546) $ (6,546) $ - 48,230 52,280 9,230 (43,050) - - (160) (160) 41,684 45,734 2,524 (43,210) 48,180 52,280 2,733 49,547 48,180 52,280 2,733 49,547 $ (6,496) $ (6,546) (209) $ 6,337 Budgetary Fund Balance, June 30 (GAAP Basis) $ (209) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT DISTRICT 82 -1 YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 197 $ 12,955 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 12,836 $ 12,836 $ 12,836 $ - 120 150 119 (31) 12,956 12,986 12,955 (31) $ 12,956 $ 12,986 12,955 $ (31) 197 $ 12,955 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT DISTRICT 84 -1 YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 198 $ 1,105,183 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $1,096,041 $ 1,096,041 $ 1,096,041 $ - 11,010 12,690 11,562 (1,128) 1,107,051 1,108,731 1,107,603 (1,128) 2,420 2,420 2,420 - 2,420 2,420 2,420 - $1,104,631 $ 1,106,311 1,105,183 $ (1,128) 198 $ 1,105,183 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2001 -01 YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 140 140 $ 488,102 $ 488,852 199 140 - 488,345 $ (507) $ 488,345 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 483,392 $ 483,392 $ 483,392 $ - 4,850 5,600 5,093 (507) 488,242 488,992 488,485 (507) 140 140 $ 488,102 $ 488,852 199 140 - 488,345 $ (507) $ 488,345 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE ETIWANDA EQUESTRIAN FACILITY YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 200 $ 665,217 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 652,248 $ 652,248 $ 652,248 $ - - 7,610 6,969 (641) - 6,000 6,000 - 652,248 665,858 665,217 (641) $ 652,248 $ 665,858 665,217 $ (641) 200 $ 665,217 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2004 -01 RANCHO ETIWANDA YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Capital outlay Bond issuance costs Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 201 $ 92,885 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 192,799 $ 192,799 $ 192,799 $ - 50 60 57 (3) 192,849 192,859 192,856 (3) - - 99,971 (99,971) 500,000 - - - 500,000 - 99,971 (99,971) $ (307,151) $ 192,859 92,885 $ (99,974) 201 $ 92,885 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2003 -01 CULTURAL CENTER YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 202 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 5,029 $ 5,029 $ 5,029 $ - - - 19 19 5,029 5,029 5,048 19 5,000 5,000 - 5,000 5,000 5,000 - 5,000 $ 29 $ 29 5,048 $ 5,019 $ 5,048 202 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2006 -01 VINTNER'S GROVE YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 203 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 608,654 $ 608,654 $ 608,654 $ - 10 20 59 39 608,664 608,674 608,713 39 100,000 100,000 - 100,000 100,000 100,000 - 100,000 $ 508,664 $ 508,674 608,713 $ 100,039 $ 608,713 203 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2006 -02 AMADOR ON ROUTE 66 YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 204 $ 7,954 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 7,907 $ 7,907 $ 7,907 $ - 60 70 47 (23) 7,967 7,977 7,954 (23) $ 7,967 $ 7,977 7,954 $ (23) 204 $ 7,954 CITY OF RANCHO CUCAMONGA Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Equipment and Vehicle Replacement — Established to account for the accumulation of user charges to various City departments and the costs associated with replacing the City's vehicles. Computer Equipment /Technology Replacement — Established to account for the accumulation of resources and the costs associated with replacing the City's data processing equipment and maintaining current technology. 205 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2015 Assets: Current: Cash and investments Receivables: Accounts Accrued interest Total Current Assets Noncurrent: Capital assets - net of accumulated depreciation Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Capital leases Total Current Liabilities Noncurrent: Capital leases Total Noncurrent Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position 206 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total $ 7,834,471 $ 3,537,110 $ 11,371,581 - 3,519 3,519 13,161 1,157 14,318 7,847,632 3,541,786 11,389,418 1,590,782 2,038,163 3,628,945 1,590,782 2,038,163 3,628,945 $ 9,438,414 $ 5,579,949 $ 15,018,363 $ 73,519 $ 69,474 $ 142,993 64,310 444,206 508,516 137,829 513,680 651,509 123,025 870,615 993,640 123,025 870,615 993,640 260,854 1,384,295 1,645,149 1,403,447 723,342 2,126,789 7,774,113 3,472,312 11,246,425 9,177,560 4,195,654 13,373,214 $ 9,438,414 $ 5,579,949 $ 15,018,363 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2015 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Operating Revenues: Sales and service charges $ 39,923 $ 159,040 $ 198,963 Total Operating Revenues 39,923 159,040 198,963 Operating Expenses: Maintenance and operations Depreciation expense Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Interest expense Total Nonoperating Revenues(Expenses) Income (Loss) Before Transfers Transfers in Changes in Net Position Net Position: Beginning of Year End of Fiscal Year 207 202,969 371,262 574,231 cnn n- A0 G7C n4� 4 n' o On= 705,617 947,279 1,652,896 (665,694) (788,239) (1,453,933) 90,321 99,929 190,250 (6,639) (51,047) (57,686) 83,682 48,882 132,564 (582,012) (739,357) (1,321,369) - 846,671 846,671 (582,012) 107,314 (474,698) 9,759,572 4,088,340 13,847,912 $ 9,177,560 $ 4,195,654 $ 13,373,214 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2015 Cash Flows from Operating Activities: Cash received from customers and users Cash paid to suppliers for goods and services Net Cash Provided (Used) by Operating Activities Cash Flows from Non - Capital Financing Activities: Cash transfers in Net Cash Provided (Used) by Non - Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in deferred outflows from pensions Increase (decrease) in accounts payable Total Adjustments Net Cash Provided (Used) by Operating Activities Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total $ 39,923 $ 155,521 $ 195,444 (193,629) (369,914) (563,543) (153,706) (214,393) (368,099) - 846,671 846,671 (665,980) (52,342) (6,640) (724,962) 846,671 846,671 (235,094) (447,368) (51,049) (733, 511) 1r)') 7Qo (901,074) (499,710) (57,689) (1,458,473) G[!I�iLL -1 86,926 102,789 189,715 (791,742) 1,556 (790,186) 8,626,213 3,535,554 12,161,767 $ 7,834,471 $ 3,537,110 $ 11,371,581 $ (665,694) $ (788,239) $ (1,453,933) 502,648 576,017 1,078,665 - (3,519) (3,519) 9,340 1,348 10,688 511,988 573,846 1,085,834 $ (153,706) $ (214,393) $ (368,099) Non -Cash Investing, Capital, and Financing Activities: There was no non -cash investing, capital and financing activities in the current fiscal year. 208 CITY OF RANCHO CUCAMONGA Agency Funds Agency funds are used to account for assets held by the City as trustee or agent for individuals, private organizations, or other governmental units, and /or other funds. Special Deposits Fund - Established to account for all deposits held by the City in its fiduciary capacity. Assessment District 82 -1 Fund - Established to account for assessments received under the Refunding Act of 1984 for 1915 Improvement Act Bonds. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation proper coupons. Assessment District 84 -2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 85 -PD Fund - Established to account for assessments received under the Refunding Act of 1984 for 1915 Improvement Act Bonds and Landscape /Lighting Act of 1972. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 88 -2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 91 -2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 93 -3 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 99 -1 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2000 -01 South Etiwanda Fund — Established to account for assessments received under the Mello -Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2000 -02 Rancho Cucamonga Corporate Park Fund — Established to account for assessments received under the Mello -Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District No. 93 -1 Masi Commerce Center Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. 209 CITY OF RANCHO CUCAMONGA Agency Funds (Continued) Community Facilities District No. 2001 -01 Special Tax Bonds, Series 2001 -A Fund - Established to account for assessments received under the Mello -Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District No. 2001 -01 Special Tax Bonds, Series 2001 -B Fund - Established to account for assessments received under the Mello -Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2003 -01 Series A Fund - This fund is used for the Community Facilities District 2003 -01 bond redemption process. The Bond Redemption fund is a short -term rotating fund, generally used to consolidate the collections received from the payments of the property owners upon payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payment on the bonds. Community Facilities District 2003 -01 Series B Fund - This fund is used for the Community Facilities District 2003 -01 bond redemption process. The Bond Redemption fund is a short -term rotating fund, generally used to consolidate the collections received from the payments of the property owners upon payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payment on the bonds. Community Facilities District 2000 -03 Rancho Summit Redemption Fund - Established to account for assessments received under the Mello -Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2000 -03 Rancho Summit Reserve Fund - Established to account for the reserve fund held by the trustee. Community Facilities District 2004 -01 Fund - This fund is used for the Community Facilities District 2004 -01 bond redemption process. The Bond Redemption fund is a short -term rotating fund, generally used to consolidate the collections received from the payments of the property owners upon payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payment on the bonds. Community Facilities District 2000 -03 Park Maintenance Fund - This fund is used for the maintenance of parks and parkways located within the Community Facilities District No. 2000 -03. The District is located south of Summit Avenue on the east and west sides of Wardman Bullock Road. Community Facilities District 2006 -01 Redemption Fund - This fund was established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Community Facilities District 2006 -02 Redemption Fund - This fund was established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Employee Deduction Account Fund - Established to account for the contribution by City employees towards specific employee -paid benefits. Assessment District No. 82 -2 - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. 210 THIS PAGE INTENTIONALLY LEFT BLANK 211 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2015 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Accrued liabilities Deposits payable Payable to trustee Due to external parties /other agencies Total Liabilities Special Assessment Assessment Assessment Deposits District 82 -1 District 84 -2 District 85 -PD CFD 88 -2 $ 8,488,072 $ 47 $ 46 $ 1,057,166 $ 4,397,015 77,576 - - 2,731 - 42,190 - - 11,173 914 - - - 457 1,179 $ 8,607,838 $ 47 $ 46 $ 1,071,527 $ 4,399,108 $ 22,401 $ - $ - $ 37,931 $ 1,160 - - - 14,744 - 8,335,437 - - - - - 47 46 1,018,852 4,397,948 250,000 - - - - $ 8,607,838 $ 47 $ 46 $ 1,071,527 $ 4,399,108 212 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2015 (CONTINUED) CFD 2000 -02 Rancho CFD 2000 -01 Cucamonga Assessment Assessment South Corporate District 91 -2 CFD 93 -3 District 99 -1 Etiwanda Park Assets: Cash and investments $ 89,735 $ - $ 296,525 $ 77,346 $ 424,196 Receivables: Accounts - - 7,746 - - Taxes 231 - - 552 15,364 Accrued interest 37 - 124 32 179 Restricted assets: Cash and investments with fiscal agents - - - 65,801 540,706 Total Assets $ 90,003 $ - $ 304,395 $ 143,731 $ 980,445 Liabilities: Accounts payable $ - $ - $ - $ - $ - Accrued liabilities 1,417 - - - - Deposits payable - - - - - Payable to trustee 88,586 - 304,395 143,731 980,445 Due to external parties /other agencies - - - - - Total Liabilities $ 90,003 $ - $ 304,395 $ 143,731 $ 980,445 213 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2015 Liabilities: Accounts payable $ - $ - $ - $ - $ - Accrued liabilities - - - - - Deposits payable - - - - - Payable to trustee 740,046 1,769,936 120,886 2,082,579 336,897 Due to external parties /other agencies - - - - - Total Liabilities $ 740,046 $ 1,769,936 $ 120,886 $ 2,082,579 $ 336,897 214 AD 93 -1 Masi Commerce CFD 2001 -01 CFD 2001 -01 CFD 2003 -01 CFD 2003 -01 Center Series A Series B Series A Series B Assets: Cash and investments $ 497,337 $ 955,329 $ 54,065 $ 664,795 $ 204,326 Receivables: Accounts - 100,000 - - - Taxes - 5,240 - 384 - Accrued interest 209 1 - 280 86 Restricted assets: Cash and investments with fiscal agents 242,500 709,366 66,821 1,417,120 132,485 Total Assets $ 740,046 $ 1,769,936 $ 120,886 $ 2,082,579 $ 336,897 Liabilities: Accounts payable $ - $ - $ - $ - $ - Accrued liabilities - - - - - Deposits payable - - - - - Payable to trustee 740,046 1,769,936 120,886 2,082,579 336,897 Due to external parties /other agencies - - - - - Total Liabilities $ 740,046 $ 1,769,936 $ 120,886 $ 2,082,579 $ 336,897 214 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2015 (CONTINUED) CFD 2000 -03 CFD 2000 -03 Rancho Rancho CFD 2000 -03 Summit Summit Park Redemption Reserve CFD 2004 -01 Maintenance CFD 2006 -01 Assets: Cash and investments $ 382,508 $ - $ 1,912,903 $ 485,642 $ 737,118 Receivables: Accounts Taxes Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Accrued liabilities Deposits payable Payable to trustee Due to external parties /other agencies Total Liabilities 3,953 - 26,000 2,868 2,549 161 - 806 204 311 12 262,110 1,189,500 - 379,651 $ 386,634 $ 262,110 $ 3,129,209 $ 488,714 $ 1,119,629 $ - $ - $ 320 $ 12,514 $ - - 6,078 - 386,634 262,110 3,128,889 470,122 1,119,629 Jdb,W4 Z� Lbz,'I'IU :� J,1zU,zuU ZO 46t5, /'14 b 1,11!j,bzU 215 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2015 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Accrued liabilities Deposits payable Payable to trustee Due to external parties /other agencies Total Liabilities Employee Deduction Assessment CFD 2006 -02 Account District 82 -2 Total $ 396,888 $ 83,618 $ 5 $ 21,204,682 - - - 188,053 2,529 - - 113,947 167 - - 4,233 197,721 - - 5,203,793 $ 597,305 $ 83,618 $ 5 $ 26,714,708 $ - $ 447 $ - $ 74,773 - - 22,239 - - - 8,335,437 597,305 - 5 17,949,088 - 83,171 - 333,171 $ 597,305 $ 83,618 $ 5 $ 26,714,708 216 THIS PAGE INTENTIONALLY LEFT BLANK 217 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 Special Deposits Assets: Cash and investments Receivables: Accounts Taxes Inventories Total Assets Liabilities: Accounts payable Deposits payable Due to external parties /other agencies Total Liabilities Assessment District 82 -1 Assets: Cash and investments Total Assets Liabilities: Payable to trustee Total Liabilities Assessment District 84 -2 Assets: Cash and investments Total Assets Liabilities: Payable to trustee Total Liabilities Assessment District 86 -2 Liabilities: Due to external parties /other agencies Total Liabilities Assessment District 85 -PD Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Total Assets Liabilities: Accounts payable Accrued liabilities Payable to trustee Total Liabilities Balance Balance 7/1/2014 Additions Deductions 6/30/2015 $ 8,395,078 $ 1,003,367 $ 910,373 $ 8,488,072 $ 2,000 - $ 76,122 $ 546 $ 77,576 - $ 49,463 $ 42,189 $ 49,462 - $ 42,190 $ 8,446,541 $ 1,121,678 $ 960,381 $ 8,607,838 $ 6,913 $ 888,112 $ 872,624 $ 22,401 8,439,628 1,480,298 1,584,489 8,335,437 - 250,000 - 250,000 $ 8,446,541 $ 2,618,410 $ 2,457,113 $ 8,607,838 $ 46 $ 1 $ - $ 47 $ 46 $ - $ - $ 47 $ 46 $ 1 $ - $ 47 $ 46 $ 1 $ - $ 47 $ 46 $ $ - $ 46 $ 46 $ - $ - $ 46 $ 46 $ $ - $ 46 $ 46 $ - $ - $ 46 $ - $ 232 $ $ - $ 232 $ $ 1,027,666 $ 1,322,954 - 4,343 14,066 11,173 946 457 232 $ 232 $ $ 1,293,454 1,612 14,066 946 $ 1,057,166 2,731 11,173 457 $ 1,042,678 $ 1,338,927 $ 1,310,078 $ 1,071,527 $ 87,111 $ 419,835 $ 469,015 $ 37,931 19,596 14,744 19,596 14,744 935,971 1,284,573 1,201,692 1,018,852 $ 1,042,678 $ 1,719,152 $ 1,690,303 $ 1,071,527 218 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 CFD 88 -2 Assets: Cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Accounts payable Payable to trustee Total Liabilities Assessment District 91 -2 Assets: Cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Accrued liabilities Payable to trustee Total Liabilities CFD 93 -3 Assets: Cash and investments Receivables: Accounts Accrued interest Total Assets Liabilities: Payable to trustee Total Liabilities Assessment District 99 -1 Assets: Cash and investments Receivables: Accounts Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Payable to trustee Total Liabilities Balance Balance 7/1/2014 Additions Deductions 6/30/2015 $ 5,160,565 $ 755,249 $ 1,518,799 $ 4,397,015 1,103 914 1,103 914 3,856 1,179 3,856 1,179 $ 5,165,524 $ 757,342 $ 1,523,758 $ 4,399,108 $ 7,540 $ 156,590 $ 162,970 $ 1,160 $ 5,157,984 $ 751,205 $ 1,511,241 $ 4,397,948 $ 5,165,524 $ 907,795 $ 1,674,211 $ 4,399,108 $ 108,305 $ 34,015 $ 52,585 $ 89,735 231 231 231 231 117 37 117 37 $ 108,653 $ 34,283 $ 52,933 $ 90,003 $ 2,046,148 $ 321,643 $ 2,063,396 $ 304,395 $ 1,287 $ 1,417 $ 1,287 $ 1,417 $ 107,366 $ 33,710 $ 52,490 $ 88,586 $ 108,653 $ 35,127 $ 53,777 $ 90,003 $ 806,827 $ 1,397,363 $ 2,204,190 39,874 - 39,874 703 - 703 $ 847,404 $ 1,397,363 $ 2,244,767 $ - $ 847,404 $ 1,346,719 $ 2,194,123 $ - $ 847,404 $ 1,346,719 $ 2,194,123 $ - $ 293,377 $ 3,412 $ 264 $ 296,525 7,746 - - 7,746 324 124 324 124 1,744,701 318,107 2,062,808 - $ 2,046,148 $ 321,643 $ 2,063,396 $ 304,395 $ 2,046,148 $ 3,089 $ 1,744,842 $ 304,395 $ 2,046,148 $ 3,089 $ 1,744,842 $ 304,395 219 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 AD 93 -1 Masi Commerce Center Assets: Cash and investments $ Balance $ 253,505 $ 242,838 $ Balance Receivables: 7/1/2014 Additions Deductions 6/30/2015 Accrued interest 432 209 CFD 2000 -01 South Etiwanda 209 Restricted assets: Assets: Cash and investments with fiscal agents 242,500 3 Cash and investments $ 96,402 $ 77,953 $ 97,009 $ 77,346 Receivables: $ 740,046 Liabilities: Taxes 686 Payable to trustee 552 729,602 686 253,077 552 Accrued interest $ 69 Total Liabilities 32 729,602 69 253,077 32 Restricted assets: $ 740,046 Cash and investments with fiscal agents 65,800 1 - 65,801 Total Assets $ 162,957 $ 78,538 $ 97,764 $ 143,731 Liabilities: Accounts payable $ - $ 1,938 $ 1,938 $ - Deposits payable 15,000 - 15,000 - Payable to trustee 147,957 77,725 81,951 143,731 Total Liabilities $ 162,957 $ 79,663 $ 98,889 $ 143,731 CFD 2000 -02 Rancho Cucamonga Corporate Park Assets: Cash and investments $ 424,002 $ 539,304 $ 539,110 $ 424,196 Receivables: Taxes - 15,364 - 15,364 Accrued interest 240 179 240 179 Restricted assets: Cash and investments with fiscal agents 540,700 6 - 540,706 Total Assets $ 964,942 $ 554,853 $ 539,350 $ 980,445 Liabilities: Accounts payable $ - $ 1,938 $ 1,938 $ - Payable to trustee 964,942 554,441 538,938 980,445 Total Liabilities $ 964,942 $ 556,379 $ 540,876 $ 980,445 AD 93 -1 Masi Commerce Center Assets: Cash and investments $ 486,670 $ 253,505 $ 242,838 $ 497,337 Receivables: Accrued interest 432 209 432 209 Restricted assets: Cash and investments with fiscal agents 242,500 3 3 242,500 Total Assets $ 729,602 $ 253,717 $ 243,273 $ 740,046 Liabilities: Payable to trustee $ 729,602 $ 253,077 $ 242,633 $ 740,046 Total Liabilities $ 729,602 $ 253,077 $ 242,633 $ 740,046 220 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 221 Balance Balance 7/1/2014 Additions Deductions 6/30/2015 CFD 2001 -01 Series A Assets: Cash and investments $ 947,712 $ 769,717 $ 762,100 $ 955,329 Receivables: Accounts 100,000 - - 100,000 Taxes 12,945 5,240 12,945 5,240 Accrued interest 4 1 4 1 Restricted assets: Cash and investments with fiscal agents 709,358 8 - 709,366 Total Assets $ 1,770,019 $ 774,966 $ 775,049 $ 1,769,936 Liabilities: Payable to trustee $ 1,770,019 $ 762,023 $ 762,106 $ 1,769,936 Total Liabilities $ 1,770,019 $ 762,023 $ 762,106 $ 1,769,936 CFD 2001 -01 Series B Assets: Cash and investments $ 53,019 $ 65,595 $ 64,549 $ 54,065 Restricted assets: Cash and investments with fiscal agents 66,821 1 1 66,821 Total Assets $ 119,840 $ 65,596 $ 64,550 $ 120,886 Liabilities: Payable to trustee $ 119,840 $ 1,046 $ - $ 120,886 Total Liabilities $ 119,840 $ 1,046 $ - $ 120,886 CFD 2003 -01 Series A Assets: Cash and investments $ 577,346 $ 1,015,364 $ 927,915 $ 664,795 Receivables: Taxes 753 384 753 384 Accrued interest 344 280 344 280 Restricted assets: Cash and investments with fiscal agents 1,432,796 170 15,846 1,417,120 Total Assets $ 2,011,239 $ 1,016,198 $ 944,858 $ 2,082,579 Liabilities: Payable to trustee $ 2,011,239 $ 1,014,927 $ 943,587 $ 2,082,579 Total Liabilities $ 2,011,239 $ 1,014,927 $ 943,587 $ 2,082,579 CFD 2003 -01 Series B Assets: Cash and investments $ 208,647 $ 192,772 $ 197,093 $ 204,326 Receivables: Accrued interest 140 86 140 86 Restricted assets: Cash and investments with fiscal agents 132,478 16 9 132,485 Total Assets $ 341,265 $ 192,874 $ 197,242 $ 336,897 Liabilities: Payable to trustee $ 341,265 $ 192,658 $ 197,026 $ 336,897 Total Liabilities $ 341,265 $ 192,658 $ 197,026 $ 336,897 221 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 Liabilities: Balance Balance 7/1/2014 Additions Deductions 6/30/2015 CFD 2000 -03 Rancho Summit Redemption 1,362,005 $ 8,246,900 $ Assets: $ 386,634 Total Liabilities $ Cash and investments $ 1,354,346 $ 555,958 $ 1,527,796 $ 382,508 Receivables: 386,634 CFD 2000 -03 Rancho Summit Reserve Taxes 6,430 3,953 6,430 3,953 Accrued interest 1,229 161 1,229 161 Restricted assets: Cash and investments with fiscal agents - 9,019,592 9,019,580 12 Total Assets $ 1,362,005 $ 9,579,664 $ 10,555,035 $ 386,634 Liabilities: Payable to trustee $ 1,362,005 $ 8,246,900 $ 9,222,271 $ 386,634 Total Liabilities $ 1,362,005 $ 8,246,900 $ 9,222,271 $ 386,634 CFD 2000 -03 Rancho Summit Reserve Assets: Restricted assets: Cash and investments with fiscal agents $ 661,648 $ 262,120 $ 661,658 $ 262,110 Total Assets $ 661,648 $ 262,120 $ 661,658 $ 262,110 Liabilities: Payable to trustee $ 661,648 $ 262,121 $ 661,659 $ 262,110 Total Liabilities $ 661,648 $ 262,121 $ 661,659 $ 262,110 CFD 2004 -01 Assets: Cash and investments $ 1,790,082 $ 2,425,223 $ 2,302,402 $ 1,912,903 Receivables: Taxes 54,494 26,000 54,494 26,000 Accrued interest 1,482 806 1,482 806 Restricted assets: Cash and investments with fiscal agents 1,189,477 54,423 54,400 1,189,500 Total Assets $ 3,035,535 $ 2,506,452 $ 2,412,778 $ 3,129,209 Liabilities: Payable to trustee $ 3,035,535 $ 2,395,481 $ 2,302,127 $ 3,128,889 Total Liabilities $ 3,035,535 $ 2,409,301 $ 2,315,627 $ 3,129,209 CFD 2000 -03 Park Maintenance Assets: Cash and investments $ 589,177 $ 430,478 $ 534,013 $ 485,642 Receivables: Taxes 3,003 2,868 3,003 2,868 Accrued interest 619 204 619 204 Total Assets $ 592,799 $ 433,550 $ 537,635 $ 488,714 Liabilities: Accounts payable $ 30,707 $ 146,682 $ 164,875 $ 12,514 Accrued liabilities 6,944 6,078 6,944 6,078 Payable to trustee 555,148 416,235 501,261 470,122 Total Liabilities $ 592,799 $ 568,995 $ 673,080 $ 488,714 222 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 CFD 2006 -01 Assets: Cash and investments Receivables: Taxes Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Payable to trustee Total Liabilities CFD 2006 -02 Assets: Cash and investments Receivables: Taxes Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Payable to trustee Total Liabilities Employee Deduction Account Assets: Cash and investments Total Assets Liabilities: Accounts payable Due to external parties /other agencies Total Liabilities Assessment District 82 -2 Assets: Cash and investments Total Assets Liabilities: Payable to trustee Total Liabilities Balance Balance 7/1/2014 Additions Deductions 6/30/2015 $ 654,983 $ 487,642 $ 405,507 $ 737,118 16,356 2,549 16,356 2,549 565 311 565 311 379,647 45 41 379,651 $ 1,051,551 $ 490,547 $ 422,469 $ 1,119,629 $ 1,051,551 $ 473,347 $ 405,269 $ 1,119,629 $ 1,051,551 $ 473,347 $ 405,269 $ 1,119,629 $ 360,527 $ 258,529 $ 222,168 $ 396,888 - 2,529 - 2,529 307 167 307 167 197,710 21 10 197,721 $ 558,544 $ 261,246 $ 222,485 $ 597,305 $ - $ 3,500 $ 3,500 $ - 558,544 260,782 222,021 597,305 $ 558,544 $ 264,282 $ 225,521 $ 597,305 $ 58,574 $ 402,757 $ 377,713 $ 83,618 $ 58,574 $ 402,757 $ 377,713 $ 83,618 $ 815 $ 4,637 $ 5,005 $ 447 57,759 245,267 219,855 83,171 $ 58,574 $ 249,904 $ 224,860 $ 83,618 $ 5 $ $ - $ 5 $ 5 $ - $ - $ 5 $ 5 $ - $ - $ 5 $ 5 $ - $ - $ 5 223 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 224 Balance Balance 7/1/2014 Additions Deductions 6/30/2015 Totals - All Agency Funds Assets: Cash and investments $ 23,393,402 $ 11,991,158 $ 14,179,878 $ 21,204,682 Receivables: Accounts 149,620 80,465 42,032 188,053 Taxes 159,530 113,946 159,529 113,947 Accrued interest 11,377 4,233 11,377 4,233 Restricted assets: Cash and investments with fiscal agents 7,363,636 9,654,513 11,814,356 5,203,793 Total Assets $ 31,077,565 $ 21,844,315 $ 26,207,172 $ 26,714,708 Liabilities: Accounts payable $ 133,086 $ 1,637,052 $ 1,695,365 $ 74,773 Accrued liabilities 27,827 22,239 27,827 22,239 Deposits payable 8,454,628 1,480,298 1,599,489 8,335,437 Payable to trustee 22,404,265 18,330,060 22,785,237 17,949,088 Due to external parties /other agencies 57,759 495,499 220,087 333,171 Total Liabilities $ 31,077,565 $ 21,965,148 $ 26,328,005 $ 26,714,708 224 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2015 Statistical Section Certain schedules recommended for inclusion in Comprehensive Annual Financial Reports of Municipalities by the Government Finance Officers Association have been omitted from this report. The omission of such schedules was made only after careful consideration of the merits of each recommended schedule by City management. 225 This part of the City of Rancho Cucamonga's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health. Contents Pa e s Financial Trends These schedules contain trend information to help the reader understand how the city's financial performance and well -being have changed over time. 227 -231 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes. 232 -237 Debt Capacity These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future. 238 -243 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place and to help make comparisons over time and with other governments. 244 -245 Operating Information These schedules contain information about the city's operations and resources to help the reader understand how the city's financial information relates to the services the city provides and the activities it performs. 246 -248 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 226 Q Z ¢O o, G � C c ` . 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O a 2 E - N >C o m w m N C o > m p° a0 nU w N i O lO - H M a n Z m O U o6 C N O U 2 N F- F- 2 m X H v 0 N CO O O N O m Q w O U O a m E N m cnC m ui i 7 O Cl) m (0 0 CITY OF RANCHO CUCAMONGA Principal Property Taxpayers Current Year and Nine Years Ago $ 1,257,170,871 5.81% $637,317,349 4.33% Source: San Bernardino County Assessor 2005/06 and 2014/15 Combined Tax Rolls and the SBE Non Unitary Tax Roll; HdL, Coren & Cone 234 2015 2006 Percent of Percent of Total City Total City Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Rancho Mall LLC $ 289,102,109 1.34% $ - 0.00% Homecoming I at Terra Vista LLC 161,984,023 0.75% - 0.00% Prologis California I LLC /Catellus 147,012,575 0.68% 78,200,745 0.53% T Napf Meritage Ownership LLC 117,327,295 0.54% - 0.00% WNG Rancho Cucamonga 496 LLC 101,723,405 0.47% - 0.00% RREEF America Reit II Corporation 94,723,200 0.44% - 0.00% Frito -Lay North America Inc 94,693,189 0.44% 57,116,328 0.39% EQR Fanwell 2007 LP 86,799,700 0.40% - 0.00% Knickerbocker Properties Inc XLVII 83,182,849 0.38% - 0.00% PPF MF 9200 Milliken Ave LP 80,622,526 0.37% 70,654,951 0.48% Cabot Industrial Properties LP - 0.00% 72,355,417 0.49% KW Mountain Vista LLC - 0.00% 67,723,738 0.46% Gruma Corporation Mission Foods - 0.00% 66,422,784 0.45% FC Victoria Gardens -C Inc - 0.00% 59,543,942 0.40% West Coast Liquidators, Inc. - 0.00% 58,494,329 0.40% Tamco - 0.00% 53,840,448 0.37% Frontier Land Company LLC - 0.00% 52,964,667 0.36% $ 1,257,170,871 5.81% $637,317,349 4.33% Source: San Bernardino County Assessor 2005/06 and 2014/15 Combined Tax Rolls and the SBE Non Unitary Tax Roll; HdL, Coren & Cone 234 CITY OF RANCHO CUCAMONGA Property Tax Levies and Collections Last Ten Fiscal Years Note: Data provided by the San Bernardino County Auditor - Controller for collection of prior year taxes does not segregate the information by fiscal year. Therefore, the City is not able to provide this information in the above schedule. Source: San Bernardino County Auditor - Controller /Treasurer /Tax Collector 235 Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 2006 $ 66,676,852 $ 65,853,106 98.76% N/A $ 65,853,106 98.76% 2007 80,690,744 80,591,967 99.88% N/A 80,591,967 99.88% 2008 91,354,251 90,692,622 99.28% N/A 90,692,622 99.28% 2009 98,855,469 95,515,265 96.62% N/A 95,515,265 96.62% 2010 98,181,404 95,149, 733 96.91% N/A 95,149,733 96.91% 2011 95,051,899 89,513,493 94.17% N/A 89,513,493 94.17% 2012 93,318,030 86,742,369 92.95% N/A 86,742,369 92.95% 2013 93,235,913 85,131,812 91.31% N/A 85,131,812 91.31% 2014 95,016,035 93,063,071 97.94% N/A 93,063,071 97.94% 2015 100,428,866 98,457,115 98.04% N/A 98,457,115 98.04% Note: Data provided by the San Bernardino County Auditor - Controller for collection of prior year taxes does not segregate the information by fiscal year. Therefore, the City is not able to provide this information in the above schedule. Source: San Bernardino County Auditor - Controller /Treasurer /Tax Collector 235 THIS PAGE INTENTIONALLY LEFT BLANK 236 CITY OF RANCHO CUCAMONGA Principal Sales Tax Remitters Current Year and Nine Years Ago 2015 Business Name Business Category Apple Electronics /Appliance Stores Bass Pro Shops Outdoor World Sporting Goods /Bike Stores Best Buy Electronics /Appliance Stores Chevron Service Stations Circle K Service Stations Costco Discount Department Stores Day Creek Arco Service Stations Day Creek Shell Service Stations Fontana Steel Contractors Home Depot Lumber /Building Materials JC Penney Department Stores Living Spaces Furniture Home Furnishings Lowes Lumber /Building Materials Macys Department Stores Monoprice Fulfillment Centers My Goods Market Service Stations NIC Partners Electrical Equipment Ralphs Grocery Stores Liquor Ross Dress for Less Family Apparel Sears Department Stores Tamco Heavy Industrial Target Discount Department Stores Tesoro Refining & Marketing Service Stations Walmart Discount Department Stores Walters Wholesale Electric Plumbing /Electrical Supplies " Firms listed alphabetically Source: The HdL Companies; State Board of Equalization 237 Business Name Ameron International Ameron Steel Pipe Apple Best Buy Chevron Circuit City Costco Dan Reshaw Mobil Home Depot Huttig JC Penney Kayo Oil Living Spaces Furniture Lowes Macys Mervyns Novartis Animal Health Robinsons May Sears Shell /Texaco Tamco Target Walmart West End Material Supply Wickes 2006 Business Category Contractors Contractors Electronics /Appliance Stores Electronics /Appliance Stores Service Stations Electronics /Appliance Stores Discount Department Stores Service Stations Lumber /Building Materials Lumber /Building Materials Department Stores Service Stations Home Furnishings Lumber /Building Materials Department Stores Department Stores Medical /Biotech Department Stores Department Stores Service Stations Heavy Industrial Discount Department Stores Discount Department Stores Lumber /Building Materials Home Furnishings CITY OF RANCHO CUCAMONGA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year Ended June 30 2006 2007 2008 2009 2010 2011 2012 3 2013 3 2014 3 20153 General Obligation Capital Bonds Leases Governmental Activities Tax Allocation Bonds 1 - $ 311,005,000 $ - 304,685,000 - 424,060,000 - 413,655,000 - 404,990,000 - 395,920,000 2,615,708 2,083,890 1,564,076 NOTES: Details regarding the City's outstanding debt can be found in the notes to the financial statements The City issued over $155 million of new tax allocation bonds in 2008. 2 This ratio is calculated using personal income and population for the prior calendar year 3 As a result of the dissolution of the Redevelopment Agency on January 31, 2012, Tax Allocation Bonds and Loans indebtedness was transferred to the Successor Agency. 238 2,615,708 2,083,890 1,564,076 Total Governmental Loans Activities 17,212,452 $ 328,217,452 23,102,037 327,787,037 21,705,050 445,765,050 20,754,833 434,409,833 20,005,200 424,995,200 19,238,811 415,158,811 NOTES: Details regarding the City's outstanding debt can be found in the notes to the financial statements The City issued over $155 million of new tax allocation bonds in 2008. 2 This ratio is calculated using personal income and population for the prior calendar year 3 As a result of the dissolution of the Redevelopment Agency on January 31, 2012, Tax Allocation Bonds and Loans indebtedness was transferred to the Successor Agency. 238 2,615,708 2,083,890 1,564,076 Business -type Activities Utility Total Total Revenue Certificates of Business -type Primary Bonds Participation Activities Government 328,217,452 - - - 327,787,037 - - - 445,765,050 434,409,833 424,995,200 415,158,811 2,615,708 2,083,890 1,564,076 239 Percentage Debt of Personal Per Income 2 Capita 2 7.58% $ 2,121 6.81% 2,026 8.63% 2,587 7.91% 2,492 8.22% 2,420 8.17% 2,345 0.00% - 0.05% 15 0.04% 12 0.03% 9 CITY OF RANCHO CUCAMONGA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) Fiscal Year Ended June 30 Outstanding General Obligation Bonds General Bonded Debt Tax Allocation Bonds Total Percent of Assessed Value 1 Percentage of Personal Income 2 Per Capita 2 2006 $ - $ 311,005 $ 311,005 2.11% 7.12% $ 1,898 2007 - 304,685 304,685 1.74% 6.27% 1,768 2008 - 424,060 424,060 2.16% 8.35% 2,438 2009 - 413,655 413,655 2.00% 8.00% 2,355 2010 - 404,990 404,990 2.04% 7.97% 2,287 2011 - 395,920 395,920 2.03% 7.36% 2,213 2012 3 - - - 0.00% 0.00% - 2013 3 - - - 0.00% 0.00% - 2014 3 - - - 0.00% 0.00% - 2015 3 - - - 0.00% 0.00% - General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 2 These ratios are calculated using personal income and population for the prior calendar year. 3 As a result of the dissolution of the Redevelopment Agency on January 31, 2012, indebtedness was transferred to the Successor Agency. 240 CITY OF RANCHO CUCAMONGA Direct and Overlapping Debt June 30, 2015 City Assessed Valuation Overlapping Tax and Assessment Debt: Metropolitan Water District Chaffey Community College District Chaffey Joint Union High School District Alta Loma School District Central School District Etiwanda School District CFD Nos. 1, 2 & 3 Etiwanda School District CFD No. 7 Etiwanda School District CFD No. 8 Etiwanda School District CFD No. 9 Etiwanda School District CFD Nos. 2004 -2 & 2007 -1 Etiwanda School District Rancho Etiwanda Public Facilities Authority CFD No. 1 Fontana Unified School District Upland Unified School District City of Rancho Cucamonga CFDs City of Rancho Cucamonga 1915 Act Bonds Total overlapping tax and assessment debt Direct and Overlapping General Fund Debt San Bernardino County General Fund Obligations San Bernardino County Pension Obligations San Bernardino County Flood Control Dist General Fund Oblig Chaffey Community College District General Fund Obligations Cucamonga School District Certificates of Participation Fontana Unified School District Certificates of Participation City of Rancho Cucamonga General Fund Obligations West Valley Vector Control District Certificates of Participation Total gross direct and overlapping general fund debt Overlapping Tax Increment Debt (Successor Agency) Total overlapping debt City direct debt Total direct and overlapping debt 12.114% 12.114% 12.114% 24.072% 41.139% 0.414% 100.000% 33.363% 100.000% 1,088,727,844 361,515,422 470,135,000 $ 21,638,337,000 2 455,796,704 55,215,213 97,230,000 City Percentage Total Share of Applicable' Debt 6/30/15 Debt 0.934% $ 110,420,000 1,031,323 24.072% 153,151,539 36,866,638 44.637% 318,851,255 142,325,635 98.743% 12,915,317 12,752,971 97.928% 38,379,543 37,584,319 100.000% 3,465,000 3,465,000 21.530% 12,645,000 2,722,469 68.006% 6,635,000 4,512,198 70.844% 8,195,000 5,805,666 100.000% 15,300,000 15,300,000 100.000% 17,615,000 17,615,000 0.414% 216,818,223 897,627 0.120% 93,812,967 112,576 100.000% 79,049,000 79,049,000 100.000% 1,475,000 1,475,000 12.114% 12.114% 12.114% 24.072% 41.139% 0.414% 100.000% 33.363% 100.000% 1,088,727,844 361,515,422 470,135,000 56,952,154 455,796,704 55,215,213 97,230,000 11,778,442 11,515,666 2,772,051 9,270,000 3,813,585 46,015,000 190,502 3,130,000 1,044,262 1,093,092,370 307,920,000 $ 2,489,740,214 Notes: The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 2 Includes aircraft values. 3 Excludes refunding issues dated after 6/30/15. Includes issues to be refunded. 4 Excludes tax and revenue anticipation notes, enterprise revenue and mortgage revenue obligations. Qualified Zone Academy Bonds are included based on principal due at maturity. Source: California Municipal Statistics, The HdL Companies 241 131,766,209 307,920,000 801,201,631 2,083,890 $ 803,285,521 n5 a) } a7 N LL Q U Z 0 2 U o U E 0 y C U c } Z 'o) O U y LL a LL 0 CD O ac) } F- F—_ a) y U J J 242 N O y 0 0 y 7 O Y0 O U) t6 E (n a) a) _ E .L.. V)) a) w -0 N a) Y T O w N a) o _a E C O E y .O T O 7 O) o -OO N > C O J O L a) o N O E 0 y c> O O U N O O CL ° N O 7Y� Y 0) a 10 y Ea°iEoaci3 oa1°i (n C a) N O O a7 a) C N O fn o L > O N m3C) -w N'o a) C — C O M a O a) (0 -O m (D a) 7 a) "O .O 7 E > y 7n O O a a,) E ) "O a) y 7 0 3 a) C > .> N O N U 'O E p a) a) O N a) O — T y N N C w- C w N a) Z�f y cc O 0 c O a) O) 0) Q O L a) 7 N C O .— 3 0 7 N a) a) a3 :S C U E E 7 U a) a m L E m Gtr a) y o> a) a) U --: o y d —5 C: m 6 0 0 0 (O/) M a) a) U) y - O N o a) 'O E a) ?i N a d' a) N N y y N L., O >` 08) O. 9 2, C O 'y U 9 j (n y a)'> y o r- a a) o w o 0 CD a) Y c w o y 0 N O O O ay00 (D a) °E Ov E - O C L y y ca)�o"�a) od a) a) .LO.. C r +'O' () 00 a)mom Ym U=' M U o E ° o 3 F c0 > U y CO c '7 '� U Lo y Om c U f- a) y' Z >w T'yri Y QU 04 o N N N O d' V O n r- °o O o N N N M M (03 V3 O O a O 00 00 00 00 O O Cl) Cl) r Cl Cl M Cl) V O N O t.- O 1- co Cl) M co O 00 c0 N EH V3 EA V3 )O LO o N N O O O O 00 W O N d d V V 09 fA M M o 00 00 O Iq Lq O O) r Lo n O N N N N N V V' W V3 M M o I- 00 fl. W O O O 'D CO O LQ LQ (0 co Cl) Cl) E9 V3 co co o 00 V 00 V O p to Cl! co N N cq m m Cl) M EH (fl 00 W 0 O Lq D) Lq O O N 0)) W O V V N 0) m M M lA Efl l0 LO 0 F-- 13 f-- rn O o M M M o O O N M M I-- r� Efl (f3 00 W o Cl) � M n O O N 00 00 r r- E9 61) co 00 0 Cl) M CQ O O I� co r Cl) O N 00 00 a) } Uri Ge m y 7 LL c > � 'E c � Y 0 0 = liu a) -yo N a) U y 4-; p a s o c m Ea U U o U O— c CL C a a) O O c o O) a m a 0) m rn 7 (p r -am =0 E E E (D f a > � _ 0 N 0 O o N fl. m y om a�i E E O "O C C c c 0 y 76 m w N In F N I-O O N Q J 242 N O y 0 0 y 7 O Y0 O U) t6 E (n a) a) _ E .L.. V)) a) w -0 N a) Y T O w N a) o _a E C O E y .O T O 7 O) o -OO N > C O J O L a) o N O E 0 y c> O O U N O O CL ° N O 7Y� Y 0) a 10 y Ea°iEoaci3 oa1°i (n C a) N O O a7 a) C N O fn o L > O N m3C) -w N'o a) C — C O M a O a) (0 -O m (D a) 7 a) "O .O 7 E > y 7n O O a a,) E ) "O a) y 7 0 3 a) C > .> N O N U 'O E p a) a) O N a) O — T y N N C w- C w N a) Z�f y cc O 0 c O a) O) 0) Q O L a) 7 N C O .— 3 0 7 N a) a) a3 :S C U E E 7 U a) a m L E m Gtr a) y o> a) a) U --: o y d —5 C: m 6 0 0 0 (O/) M a) a) U) y - O N o a) 'O E a) ?i N a d' a) N N y y N L., O >` 08) O. 9 2, C O 'y U 9 j (n y a)'> y o r- a a) o w o 0 CD a) Y c w o y 0 N O O O ay00 (D a) °E Ov E - O C L y y ca)�o"�a) od a) a) .LO.. C r +'O' () 00 a)mom Ym U=' M U o E ° o 3 F c0 > U y CO c '7 '� U Lo y Om c U f- a) y' Z >w T'yri Y QU CITY OF RANCHO CUCAMONGA Pledged- Revenue Coverage Last Ten Fiscal Years (In Thousands) Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. ' Tax increment figures are net of related pass- through payments. 2 As a result of the dissolution of the Redevelopment Agency on January 31, 2012 indebtedness was transferred to the Successor Agency. 243 Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment' Principal Interest Coverage 2006 $ 59,003 $ 6,130 $ 14,814 2.82 2007 71,985 6,320 14,577 3.44 2008 77,319 6,600 15,600 3.48 2009 77,581 10,405 20,994 2.47 2010 77,255 8,665 20,547 2.64 2011 69,583 9,070 20,122 2.38 2012 2 51,609 9,520 9,950 2.65 2013 2 n/a n/a n/a n/a 2014 2 n/a n/a n/a n/a 2015 2 n/a n/a n/a n/a Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. ' Tax increment figures are net of related pass- through payments. 2 As a result of the dissolution of the Redevelopment Agency on January 31, 2012 indebtedness was transferred to the Successor Agency. 243 CITY OF RANCHO CUCAMONGA Demographic and Economic Statistics Last Ten Calendar Years Sources: (1) California State Department of Finance (2) 2005 -2009 Income Data: ESRI; 2010 and later Income Data: U.S. Census Bureau (3) California Employment Development Department 244 Per Personal Capita Income' Personal Unemployment Calendar Population (in thousands) Income' Rate Year (1) (2) (2) (3) 2005 163,840 4,368,151 26,661 3.3% 2006 172,322 4,856,204 28,181 3.1% 2007 173,916 5,076,801 29,191 3.6% 2008 175,627 5,167,755 29,425 5.1% 2009 177,051 5,080,143 28,693 8.6% 2010 178,904 5,377,675 30,059 9.4% 2011 169,498 5,190,707 30,624 8.7% 2012 171,058 5,341,115 31,224 6.2% 2013 172,299 5,335,755 30,968 5.4% 2014 174,064 5,402,772 31,039 6.0% Sources: (1) California State Department of Finance (2) 2005 -2009 Income Data: ESRI; 2010 and later Income Data: U.S. Census Bureau (3) California Employment Development Department 244 CITY OF RANCHO CUCAMONGA Principal Employers Current Year and Nine Years Ago* Note: "Total Employment" as used above represents the total employment of all employers located within City limits. Includes full -time and part -time employees. *Only the top ten employers for each year presented have data displayed. If a company did not rank in the top ten employers for both years presented, then one of the two years will state ' n/a". Source: ESRI, Infogroup, Economic and Community Development Department 245 2015 2006 Percent of Percent of Number of Total Number of Total Employer Employees, Rank Employment Employees, Rank Employment Chaffey Community College 1,229 1 1.46% 1,100 1 1.75% Etiwanda School District 1,058 2 1.26% 1,015 2 1.61% Inland Empire Health Plan (IEHP) 1,000 3 1.19% n/a n/a n/a Amphastar Pharmaceutical 880 4 1.05% n/a n/a n/a City of Rancho Cucamonga 849 5 1.01% 729 4 1.16% Southern California Edison 800 6 0.95% 450 9 0.71% Alta Loma School District 623 7 0.74% 920 3 1.46% Big Lots Distribution Center 600 8 0.71% n/a n/a n/a Mercury Insurance Company 600 9 0.71% 437 10 0.69% Central School District 527 10 0.63% 500 7 0.79% Frito -Lay, Inc. n/a n/a n/a 600 5 0.95% C.W. Construction n/a n/a n/a 600 5 0.95% Mission Foods n/a n/a n/a 573 6 0.91% Target n/a n/a n/a 475 8 0.75% Note: "Total Employment" as used above represents the total employment of all employers located within City limits. Includes full -time and part -time employees. *Only the top ten employers for each year presented have data displayed. If a company did not rank in the top ten employers for both years presented, then one of the two years will state ' n/a". 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