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HomeMy WebLinkAbout2016/06/30 Comprehensive Annual Financial Report City of Ot ANCHO UCAMONGA . .. C a 11" f o r n a - - - f ,. ;k vi- ' Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 201 City of Rancho Cucamonga, California Comprehensive Annual Financial Report Year Ended June 30, 2016 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, 2016 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letterof Transmittal ..............................................................................................................................i CityOfficials ...................................................................................................................................xxxiii OrganizationChart........................................................................................................................ xxxiv Certificate of Achievement for Excellence in Financial Reporting .................................................xxxv FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT.............................................................................................. 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................ 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statementof Net Position .................................................................................................... 23 Statement of Activities.......................................................................................................... 24 Fund Financial Statements: Balance Sheet- Governmental Funds................................................................................. 26 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................... 31 Statement of Revenues, Expenditures and Changes in Fund Balances- Governmental Funds ......................................................................................... 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statementof Activities.......................................................................................................... 34 Statement of Net Position - Proprietary Funds.................................................................... 35 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds.......................................................................................... 36 Statement of Cash Flows - Proprietary Funds..................................................................... 37 Statement of Fiduciary Net Position - Fiduciary Funds........................................................ 38 Statement of Changes in Fiduciary Net Position - Fiduciary Funds.................................... 39 Notes to Financial Statements.................................................................................................... 41 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS Page Number REQUIRED SUPPLEMENTARY INFORMATION Notes to Required Supplementary Information.......................................................................... 95 Budgetary Comparison Information: Budgetary Comparison Schedule - General Fund............................................................... 96 Budgetary Comparison Schedule - Citywide Infrastructure Improvement........................... 97 Budgetary Comparison Schedule - Housing Successor Agency......................................... 98 Budgetary Comparison Schedule - Fire District................................................................... 99 Pension Information: Schedule of Changes in Net Pension Liability and Related Ratios- Miscellaneous Plan -Agent Multiple-Employer Plan ......................................................... 100 Schedule of Plan Contributions - Miscellaneous Plan - Agent Multiple-Employer Plan............................................................................................ 101 Schedule of Proportionate Share of the Net Pension Liability- Cost Sharing Multiple-Employer Plans .............................................................................. 102 Schedule of Plan Contributions - Cost Sharing Multiple-Employer Plans ......................... 103 Schedule of Changes in Net Pension Liability and Related Ratios - PARS Retirement Enhancement Plan............................................................................... 104 Schedule of Plan Contributions - PARS Retirement Enhancement Plan.......................... 105 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet- Nonmajor Governmental Funds.................................................. 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds................................................................ 132 Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds: GasTax.............................................................................................................................. 149 Recreation.......................................................................................................................... 150 ParkDevelopment.............................................................................................................. 151 Beautification...................................................................................................................... 152 LightingDistricts................................................................................................................. 153 Landscape Maintenance Districts...................................................................................... 154 Transportation.................................................................................................................... 155 PedestrianGrant................................................................................................................ 156 Community Development Block Grant............................................................................... 157 Assessment Administration................................................................................................ 158 San Sevaine/Etiwanda Drainage....................................................................................... 159 AirQuality Improvement..................................................................................................... 160 South Etiwanda Drainage .................................................................................................. 161 Lower Etiwanda Drainage.................................................................................................. 162 Masi Commerce Center..................................................................................................... 163 MeasureI ........................................................................................................................... 164 LibraryServices ................................................................................................................. 165 Proposition 84 - Park Bond Act.......................................................................................... 166 AssetForfeiture ................................................................................................................. 167 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds (Continued): COPSProgram Grant........................................................................................................ 168 DrainageFacilities.............................................................................................................. 169 CAState Library................................................................................................................. 170 AB 2928 Traffic Congestion Relief..................................................................................... 171 Litter Reduction Grant........................................................................................................ 172 SAFETEA-LU Grant........................................................................................................... 173 Underground Utilities.......................................................................................................... 174 Safe Routes to School Program ........................................................................................ 175 COPS Hiring Program Grant.............................................................................................. 176 Foothill Blvd. Maintenance................................................................................................. 177 CA State Library Staff Innovation Fund Grant................................................................... 178 The Big Read Library Grant............................................................................................... 179 Homeland Security Grant- Fire......................................................................................... 180 Public Resource Grants..................................................................................................... 181 Proposition1B.................................................................................................................... 182 Integrated Waste Management.......................................................................................... 183 Proposition 42 - Traffic Congestion Mitigation................................................................... 184 Freedom Courtyard Resource Grant................................................................................. 185 Justice Assistance Grant Program..................................................................................... 186 Emergency Management Performance Grant................................................................... 187 Homeland Security Grant- Police...................................................................................... 188 Used Oil Recycling Program.............................................................................................. 189 Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds: Assessment District 82-1 ................................................................................................... 190 Assessment District 84-1 ................................................................................................... 191 CFD2001-01...................................................................................................................... 192 Etiwanda Equestrian Facility.............................................................................................. 193 CFD 2004-01 Rancho Etiwanda........................................................................................ 194 CFD 2003-01 Cultural Center............................................................................................ 195 CFD 2006-01 Vintner's Grove............................................................................................ 196 CFD 2006-02 Amador on Route 66................................................................................... 197 Combining Statement of Net Position - Internal Service Funds............................................... 200 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds.............................................................................. 201 Combining Statement of Cash Flows - Internal Service Funds................................................ 202 Combining Balance Sheet-All Agency Funds......................................................................... 206 Combining Statement of Changes in Assets and Liabilities- AIIAgency Funds...................................................................................................................... 212 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS Page Number STATISTICAL SECTION Financial Trends: Net Position by Component- Last Ten Fiscal Years.........................................................223 Statement of Activities (Condensed)- Last Ten Fiscal Years ...........................................224 Fund Balances of Governmental Funds - Last Ten Fiscal Years......................................225 Changes in Fund Balances of Governmental Funds - LastTen Fiscal Years ........................................................................................................226 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property...................................227 Direct and Overlapping Property Tax Rates- Last Ten Fiscal Years................................228 Principal Property Taxpayers- Current Year and Nine Years Ago ...................................229 Property Tax Levies and Collections - Last Ten Fiscal Years...........................................230 Principal Sales Tax Remitters- Current Year and Nine Years Ago ..................................231 Debt Capacity: Ratios of Outstanding Debt by Type- Last Ten Fiscal Years............................................232 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years..............................234 Direct and Overlapping Debt.............................................................................................. 235 Legal Debt Margin Information - Last Ten Fiscal Years ....................................................236 Pledged-Revenue Coverage- Last Ten Fiscal Years .......................................................237 Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Calendar Years...................................238 Principal Employers- Current Year and Nine Years Ago..................................................239 Operating Information: Full-Time and Part-Time City Employees by Function - Last Eight Fiscal Years.............. 240 Operating Indicators by Function - Last Eight Fiscal Years...............................................241 Capital Asset Statistics by Function - Last Eight Fiscal Years...........................................242 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2016 Introductory Section THIS PAGE INTENTIONALLY LEFT BLANK Mayor L.Dennis Michael I Mayor Pro Tern Sam Spagnolo Council Members William J.Alexander,Lynne Kennedy,Diane Williams City Manager John R.Gillison THE CITY OF RANCHO CUCAMONGA 10500 Civic Center Drive I P.O.Box 807 1 Rancho Cucamonga,CA 91729-0807 1 909.477.2700 1 www.CityofRC.us November 29, 2016 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, 2016. 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, 2016, 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, 2016, 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. i 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 175,251 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, 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 ii 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 After nine years,the City has finally recovered revenues lost during the recession. It is anticipated that the City's revenue base will continue to grow,albeit as a slow and gradual pace. Key elements contributing to this growth include the following: • Unemployment levels within Rancho Cucamonga(4.4%) are more favorable than the County of San Bernardino overall at 5.9% as well as the State at 5.5%; • Taxable sales of general merchandise continue to show steady increases; • The City's net taxable value for property taxes continues to grow,up 3.6%from the prior year; and • The housing market continues to experience increases in prices while low supply is battling with strong demand 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 economic development programs to promote private investment,job retention, and growth. See additional discussion under the "Highlights of Fiscal Year 2015/16" section — Economic Development. iii 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 2016/17 total $62,125,580. The CIP includes the construction of a new training facility for the Fire District as well as the relocation of a current fire station; the relocation of the Rancho Cucamonga Family Sports Center; utility undergrounding on Base Line Road from Carnelian to Vineyard and on Arrow Route from Bear Gulch to Archibald Avenue; the initial design of Etiwanda Creek Park; widening the Metrolink crossing at Hellman Avenue; construction of the Cucamonga Storm Drain Upper Phase III; Base Line Road at 1-15 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, Citywide Infrastructure 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, 2016, the City of Rancho Cucamonga does not have any bonded indebtedness. Risk Management During Fiscal Year 2015/16, 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, iv 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 $250,000 of loss for general liability claims as well as employment practices liability claims and purchases coverage for losses ranging from$250,000 to $35 million. For workers' compensation claims, the City is self-funded for the first$250,000 and purchases coverage for losses ranging from$250,000 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(CalPERS). 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 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 2015/16 Economic Development The Community Development Group has become the lead for pursuing economic development programs and opportunities. Economic Development staff currently provides coordination and support for companies and real estate professionals pursuing site acquisition, and business relocation and expansion. During the past fiscal year, staff met with and assisted a number of companies, such as Tekton Hospitality, Pacific Pharmaceutical, Aldi, and Inland Empire Health Plan, to open and/or expand in Rancho Cucamonga. These companies added nearly 250 new jobs in the community. Economic Development activities also included events and outreach efforts that support the City's target industries. For example, in April the City Council approved the renewal of the Greater Ontario Tourism Marketing District (GOTMD). The role of the GOTMD is to increase tourism and event destination while increasing overnight stays. As a result, Rancho Cucamonga hotels have experienced an increase in average daily rates and occupancy rates. Other events included the West Valley Regional Job Fair,where over 70 local employers participated and approximately 400 job seekers attended the fair. Economic Development activities have also included marketing efforts to enhance the City's business friendly image and promote the City as a place where business will thrive. These marketing efforts included the development of a social media presence on Facebook and Twitter and also an e-Newsletter. Over a period of four months, the target audience has grown to more v than 4,500, with an average weekly growth of 10%. Finally, as recommended in the City's Economic Development Strategic Plan, staff have worked to evolve key areas in the City into mixed-use pedestrian-friendly, workplace districts. The City has entered into an Exclusive Negotiating Agreement with a developer to develop ten acres of land adjacent the Metrolink Station in Rancho Cucamonga. The proposed project attempts to provide a product of housing, entertainment, and retail experience not currently found in Rancho Cucamonga. Affordable Housing 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 was eliminated. This program assisted over 117 families with becoming 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, proceeds from previously issued housing bond funds are available for housing projects. The limited resources available through the remaining bond proceeds 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 In May 2016, the City entered into an agreement with Day Creek Senior Housing Partners, LP to build 139 affordable senior housing units plus one manager unit. The Housing Successor Agency will contribute$4,200,000 of its housing bond proceeds to allow for the project to remain affordable for a term of 55 years. In the coming year, the developer will be applying for 9% tax credit financing. Per the term of the agreement, the developer has four opportunities to apply for these tax credits in order to complete the additional funding needed for this project. Additionally, in 2015, the City entered into an agreement with 7418 Archibald LLC to build 59 affordable senior housing units plus one manager unit. The Housing Successor Agency will contribute $4,360,908 of its housing bond proceeds to allow for the project to remain affordable for a term of 55 years. The developer 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 2017 order to obtain the additional funding needed to construct the 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. 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: vi 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 Engineering Services The Department is comprised of one lead section,the Engineering Administration Section,headed by the Engineering Services Director/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 Section In addition to overseeing the operations of the Engineering Services Department's full-time and part-time employees and$37.5 million in combined operating and capital budgets,the Engineering Administration Section also managed several significant projects during Fiscal Year 2015/16. Key projects 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, and assisting with drafting a pavement ordinance. Additionally, the Administration Section coordinated and organized the ribbon cutting for the newly paved Wilson Avenue extension. This section is responsible for maintaining the department website for internal and external information, updating the department's fee schedule, drafting and producing the RCMU Annual Report, and working with Environmental Programs during the lien process for delinquent refuse accounts. Capital Improvements Section 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 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 21 Capital Improvement Projects amounting to just over $15 million were completed during Fiscal Year 2015/16. vii The following are some of the other key capital projects that were completed during Fiscal Year 2015/16: • Local Street Pavement Overlay and Slurry Seal • Base Line Road at the I-15 Freeway Utility Underground(part of the 1-15 Freeway Interchange Improvement) • 8th St from Baker to Hellman,Baker Avenue from Main to Foothill, and 6th Street from Hermosa to Haven pavement rehabilitations • Fiscal Year 2015/16 Sidewalk Improvements for Bus Stops at various locations • 4th from Archibald to Haven, 7th from Archibald to Hellman, and Archibald from 4th to Foothill pavement rehabilitations • Etiwanda Creek Park Sidewalk Improvement • Solar Carport System Installation at the Civic Center north parking lot Transportation Development Section 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 Base Line Road / 1-15 Interchange Improvements Project. This project is currently under construction and is expected to be completed by December 2016. During Fiscal Year 2015/16, the Section supported the Capital Improvements Section in the installation of 17 new vehicle detection systems throughout the City. These vehicle detection systems and cameras were installed to meet State requirements regarding bicycle detection. Two new traffic signals were installed during this fiscal year. They are located at Base Line Road and San Carmela Court, and Etiwanda Avenue and Whittram Avenue. Land Development Section 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. Land Development staff has continued to partner with the Department of Innovation and Technology (DoIT) in implementing, administering, and maintaining the new Accela land management software. Environmental Programs Section 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: completion of a new franchise agreement for Integrated Solid Waste Management Services and Street Sweeping Services, opening the Reuse Shed at the City's Household Hazardous Waste Collection Facility, providing service to 6,295 participants at the Household Hazardous Waste Collection Facility, conducting over 900 storm water inspections, and participating in 26 community events. This year the section applied tax assessments and title liens on 175 properties viii to recover approximately $49,716 in delinquent trash account payments on behalf of the City's franchised waste management company. Municipal Utility Section 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 over 7,000 feet of distribution circuit and placed new Pad Mounted Equipment switches and transformers along Haven Avenue, Sixth Street, Utica Avenue, and Spruce Avenue. The Utility continues to embark on its mission to be a greener utility by utilizing renewable energy as part of its energy portfolio by completing a 6 MW Power Purchase Agreement with Recurrent Energy's Astoria 2 Solar PV Project in Kern County. Public Works Services The Public Works Services Department maintains the City's growing infrastructure of buildings, streets, storm drains,parks, and landscape improvements. The Public Works Services Department is headed up by the Public Works Administration Division which is responsible for the management of three 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 2015/16: Administration Division In addition to overseeing the operations of the Public Works Services Department's 170+full-time and part-time employees and over $33 million in combined operations and capital budgets, the Public Works Administration Division managed several significant projects this year. Key items this year included: continued work to reduce costs in LMD 1 and PD-85 due to funding shortfalls; research and analysis into the ramifications of being in the fourth year of the drought and mandatory water reduction goals by the Governor;acceptance of a grant from the Mobile Source Air Pollution Reduction Review Committee (MSRC) in the amount of $30,000 for an asphalt patch truck; continued to improve the workflow for contracts and professional services agreements;and assisted 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$122,924 for 89,204 square feet of turf removals in LMD 2 (Victoria). Facilities Maintenance Division The Facility Maintenance Division is responsible for the operation and maintenance of 14 city- owned buildings throughout the city. Facility staff also provide technical assistance during development of new buildings and parks, provide relocation services during reorganizations, and manage numerous capital maintenance projects each year, including: • Department of Innovation and Technology Remodel—In order to accommodate the integration of the GIS and IS divisions into one physical location, the space (the former lower level Engineering space) was renovated and became the new "Innovation Lab" which houses the new department. ix • Public Safety IAQ HVAC Modifications—This project was done to modify the entrance to the Public Safety mechanical room in order to prevent any possible IAQ issues in the interior of the Public Safety building which is adjacent to the underground parking structure. • Construction of a Family Restroom at LoanMart Stadium—This project is in response to customer requests and based on a federal mandate. The family restroom is located along the first base side between the existing women's and men's restrooms. • Expansion of the Public Safety Video Network (PSVN) at the Metrolink parking lot and platform area. This phase will integrate into the existing city-wide IP surveillance. • Citywide Elevator Maintenance and Repair Services—This contract includes monthly, quarterly,semi-annual,and annual preventative maintenance,repairs,and emergency response services for a fixed lump sum monthly price. There are six elevators in the City. • City Hall Elevator Modernization Project—This project was bid during FY 2015/16;however, all bids far exceeded the budget. Staff will be revising specifications and this project will be re-bid during FY 2016/17. • HVAC Maintenance Services—The regular maintenance and extra work service for the heating,ventilation, air conditioning,and refrigeration systems for City facilities was awarded during FY 2015/16. • Civic Center Cooling Tower Replacement— This project removed the existing cooling tower and installed a new, more efficient cooling tower with a variable frequency drive that allows the tower motor to increase or decrease the RPM of the motor based on the demand for cooling. • 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. Phase two of the project will occur during FY 2016/17. • In addition to the numerous capital projects happening, there were also several large service contracts awarded/renewed including: mechanical engineering services, architectural, electrical, and structural engineering services. Streets,Fleet, and Storm Drain Maintenance Division The Street Maintenance personnel handle many different functions including: maintenance of roadways,storm drains,traffic signs,markings,special events,and traffic signal systems and safety lighting. Additional functions include graffiti abatement,concrete repair,street sweeping,and 24/7 emergency response. This group also oversees fleet maintenance, vehicle/equipment specifications, and warehouse operations. • Above Ground Fuel Island Maintenance Service Award — Above ground fuel island maintenance includes quarterly, semi-annual, and annual preventative maintenance checks, dispenser filter replacements, emergency relief and leak detection checks, AQMD Rule No. CFR 112 vapor recovery testing and miscellaneous repairs of above ground storage tanks (AST's)for unleaded and diesel fuels,fuel dispensers and related facilities. There are a total of nine (9)above ground fuel island sites in City and Fire District facilities. • Vehicle Purchases — The City Council authorized the purchase of the following replacement vehicles: one heavy duty flatbed truck for the new thermoplastic program, one CNG storm x drain truck,one graffiti truck,one CNG asphalt patch truck,as well as the purchase of one new CNG street sweeper to replace one that was burned during sweeping operations. • Sidewalk Inspection Program—The inspection of City paseos was completed in December and the re-inspection of the previously established grids started again in January. As concrete lifts or cracks in the public right-of-way are identified, staff schedules an asphalt ramp or grinding of the lift as a temporary measure. The information gathered during these inspections is used to schedule permanent repairs of sidewalks, curb and gutters, and drive approaches. • Traffic Sign Retro-reflectivity Testing—The retro-reflectivity inspections of regulatory speed limit signs citywide were completed and the replacement of speed limit signs not meeting the minimum retro-reflectivity requirements are in the process of being replaced. • 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 2015/16, a total of 3,646 catch basins were inspected and 130 catch basins required cleaning. • Many smaller projects were completed during FY 2015/16 including: asphalt repairs,concrete sidewalk and curb/gutter repairs,graffiti removal, street sweeping, storm drain inspections and cleaning,traffic sign installations and repairs,traffic legend repaints,chemical and mechanical weed abatement,debris removal,special event coverage,mechanic on-call emergency response and streets on-call emergency response. The city-wide concrete contract was also re-bid during FY 2015/16. Parks and Landscape Maintenance Division This diverse group maintains over 400 landscaped sites, as well as the City parks, Adult Sports Complex and Epicenter,landscaped facilities,parkways,paseos and median islands,park facilities, City-wide trails, and City-owned trees. The Parks group is staffed 7 days a week and has several specialized positions,such as Certified Pest Control Advisors/Applicators,ISA Certified Arborists, Certified Water Auditors, and a Certified Playground Safety Inspector who perform some of the more technical work activities within the section. • Drought Update—Staff continued to look at ways to conserve water and take a measured approach to lessen the impact to residents by using these principles: o Preservation of turf in the active areas of the parks including: ■ Playing fields ■ Around playgrounds and safety zones ■ Picnic areas ■ Shade structures o Preservation of the overarching landscape design, features and aesthetics o Preservation of property values o Avoiding changes that are irreversible or permanent wherever possible o Preserve as many trees as possible o Use the existing mature landscape material as an anchor element for any changes As mentioned earlier in the Administration section, 89,204 square feet of turf was removed in LMD 2 (Victoria) in support of the water conservation measures. Staff will continue to make xi landscape adjustments replacing existing plant material with low water use vegetation and adding wood mulch where it is feasible and beneficial in a continued effort to achieve the water savings requirements. Staff is also planting new trees throughout the park system where funds are available to replace dead and declining trees. This will help to re-establish canopy coverage for the retention of water, cooling, and providing a healthy environment for the community. • LMD 1 and PD-85 Budget Reductions—Structural deficits in LMD 1 and PD-85 resulted in several cost saving measures being added to those previously approved by the City Council. Most of the measures would take effect in FY 2016/17; however, the following items were approved to begin in FY 2015/16: o Begin the changeover of sport lighting citywide to "pay to play" credit card activated light controls. o Solar Feasibility study(being handled by the City Manager's office). o Begin the Red Hill Water Feature modernization project (being handled by the Engineering Services Department). • Award of Park Maintenance for LMD 1—At the direction of City Council,staff re-bid the park maintenance contract for LMD 1 as a cost saving measure in this district and a contract was awarded to BrightView Landscape Services. Bids for the PD-85 park maintenance was also solicited and will be awarded in FY 2016/17. • City-wide Parks Painting Project—The scope of work included the painting of the entire restroom building at Victoria Arbors Park(LMD 2) and at Mountain View Park (LMD 4), as well as the painting of the gazebo, the pump and trash enclosure, the two (2) mini arbors and the arbor at Victoria Arbors Park, the painting of the CSD storage room, the pipe chase, the seat walls, the arbor and the shade shelter at Mountain View Park, the painting of the trash enclosure and the seat walls at Coyote Park and the painting of the outside wood and outside wall portions of the restroom building at Garcia Park. • Civic Center Landscape Renovation—The scope of work includes the removal of the existing landscaping and irrigation system and be replaced with new Date palms, cobble paving, decomposed granite, landscape boulders and a water efficient irrigation system. This project was originally bid in FY 2015/16;however,all of the bids received far exceeded the Engineer's estimate and will be revised and re-bid during FY 2016/17. 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 "Director, Department of Planning and Community Development"of the League of California Cities for 2016. 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 7,900 residents, developers and business owners at the counter and received over 5,700 telephone calls in Fiscal Year 2015/16. xii 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: • 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 is nearly ending with the construction of the last house expected to be completed by the beginning of the year. • The Planning Department, in conjunction with the Community Services Department, completed the entitlement of a 34,994 square foot City recreation facility that includes three indoor and three outdoor basketball courts. Construction is expected to commence this year. • A project has been entitled for the development of a 108-room Hampton Inn and Suites on the south side of Foothill Boulevard east of Mayten Avenue to replace an existing Carrows restaurant. Construction is estimated to start in 2017. • In keeping with implementing the goals and objectives of the General Plan and City Council goals,in 2016 the Planning Commission approved entitlements for two significant mixed use projects. The first project is located at the Northeast corner of Foothill and East Avenue and is comprised of an 8.8 acre project site with 193 units, including 3 live work units. The unit mix includes 72 one bedrooms, 107 two bedrooms and 14 three bedrooms. Construction will include two-story carriage units and four-story, contemporary architecture. Rental rates are anticipated to range from$1,30041,850. The second mixed use project is for a 4.7 acre site at the northeast corner of Foothill and Hermosa for 182 units. The unit mix includes three to four story design consisting of 106 one bedrooms, 70 two bedrooms, 6 three bedrooms and 5 live/work units. Expected rental rates are $1,500- $2,700. • The City Council approved an amendment to the Empire Lakes Specific Plan that was proposed by SC Rancho Corp. in January 2015. Referred to as the"Empire Lakes Project" the approved amendment allows for the development consisting of a combination of high density residential,commercial,and office uses in an"urban"setting at the former Empire Lakes Golf Course. Staff from all departments are now working with the applicant on the preliminary details and procedural steps for the entitlements that will permit the construction of the overall project. • The Planning Department is currently working on a project(referred to as"Empire Yards") together with the San Bernardino Associated Governments (SANBAG) and Creative Housing Associates to develop a higher density, mixed use and transit-oriented project at the current Metrolink station near Milliken Avenue. • In late 2015, as the second phase of a multi-phased project, the Planning Department completed an evaluation of several parcels in the City to determine their suitability for mixed use development. Subsequently, several parcels (primarily located along Foothill Boulevard)were selected and their land use designations in the General Plan were revised to Mixed Use. The amendment to the General Plan was reviewed and approved by the City Council in June 2016. • As of late 2016,the Planning Department continues to evaluate additional parcels for their suitability for mixed use development. These parcels were originally identified in the second phase of the project discussed above. However, due to land development patterns xiii and existing on-site conditions of these parcels, further analysis was deemed necessary to ensure compatibility with existing development, historic character, etc. Because these locations are unique,they will be treated as individual mixed use"villages". With this third phase, the Planning Department will be exploring, for example, technical and design standards for these villages. It is expected that this phase will be submitted to the City Council for review and action by the end of the second quarter of 2017. • 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. Five separate code updates were approved by the City Council this year. These code updates included changes to development standards for mixed use development along transit corridors and regulating massage establishments. • 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. 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 17th,2016,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, an earthquake simulator, and other activities related to emergency preparedness. • 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. Building and Safety The Building and Safety Services 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 17,118 inspections, responded to over 1,000 complaints and investigations, and issued over 4,891 permits during the 2015/16 fiscal year. xiv 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, revising and updating forms and handouts. An additional service provided by this division is the administration of the ADA compliant program for 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 the 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 5,890 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 The 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 departmental support to the Engineering Services and Planning Departments,with project review during the entitlement process,performing reviews of the Storm Water Quality documents, and acting as the City Land Surveyor for the Engineering Services Department. Community Improvement Excellence happens through continuous effort and this has remained the goal and emphasis for the Community Improvement Division during this fiscal year. The Division has reached out to the community to provide information, educate and promote voluntary effort to improve the quality of life in Rancho Cucamonga. This has included participation in Community events,such as National Night Out, Police Department Open House, Crime-Free Multi Housing classes and presentations to community groups. Community Improvement is collaborating with other departments to enhance the overall services the City provides. Officers have participated in several multi-faceted inspections including Police, Business Licensing,Fire Prevention,and other county and state personnel. Inspections completed xv in this manner better serve the public to avoid conflicts or misunderstandings and providing the property or business owner a comprehensive report for and necessary corrections. Training and education of staff members has been a renewed priority in the Division as there has continued to be many changes among the staff. Training is obtained through the City and also through the California Association of Code Enforcement Officers (CACEO) for information more specific to the role of Community Improvement. The City has hosted Inland Empire Roundtable training for CACEO and staff have attended the Annual Education Seminar hosted by CACEO where presentations from a variety of sources provide new ideas for dealing with similar issues in our community. The three City volunteers who support Community Improvement have continued to enhance our ability to serve the community and assist in any manner asked. Their efforts to remove numerous signs from the right-of-way, provide for shopping cart removal, and perform other tasks would truly be noticed if they weren't part of the program. During Fiscal Year 2015/16, Community Improvement Officers responded to 2,696 reports of violations occurring in the City and completed 6,199 inspections. From Fiscal Year 2014/15,this is a 10% decrease in cases and a 28% increase of completed inspections. This illustrates the commitment to gaining long-term compliance by maintaining repeat cases in a monitor status to provide additional inspections. By having additional reports appended to the initial case, processing time is reduced, allowing staff to spend additional time in the field. 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. With the implementation of ActiveNet in April 2016, the new electronic membership and patron check- in/tracking system was launched in Wellness Pass. This new system will assist staff in tracking membership and help shape policy to maximize the use of Wellness Pass. Central Park Event Services Central Park offers nine meeting rooms,two large event halls, a cozy courtyard, and beautiful park grounds for picture opportunities.The ambiance alone sets the mood for a successful event,whether it be intimate or extravagant. Central Park is a very popular location for weddings,anniversary and birthday parties, and much more. The Central Park meeting rooms and halls are so versatile and can accommodate anywhere from 10 to 300 people. In addition to weddings and parties, Central Park has successfully hosted special events by local representatives,a variety of High School proms and formals, college commencement ceremonies, and professional associations, community groups,business groups, and more! xvi Cultural&Performing Arts The Lewis Family Playhouse at the Victoria Gardens Cultural Center celebrated its 10"'season of world class entertainment,including such artists as The Commodores,Peter Cetera,A Peter White Christmas, Los Lonely Boys, Lonestar,Frankie Avalon, the legendary Mills Brothers and the one and only Dick Van Dyke — all garnering sold out houses for the Playhouse. The City's resident theatre companies produced a number of iconic shows to the audience's delight such as Broadway at the Gardens' CATS, Rancho Cucamonga Community Theatre's Miracle on 34`" Street, and MainStreet Theatre Company's presentation of Mirette, which also was awarded a National Endowment for the Arts (NEA) grant to support this new TYA version of the musical which premiered on the Playhouse stage. Additionally,the Victoria Gardens Cultural Center was host to several popular events throughout the year including the State of the City Address and Reception, the Yd Annual Bridal Expo, Curtain Call Cocktails, Mother's Day Tea, the Community & Arts Foundation's Monte Carlo Night and the Library's Star Wars extravaganza. The Theatre Arts Academy hosted a variety of classes & workshops throughout the year, and once again offered a summer Broadway Camp for aspiring youth performers. After 10 years in operation,the Lewis Family Playhouse upgraded to a state of the art digital sound console in February of 2016. The new Soundcraft, "VI-3000 digital live sound console"replaced the existing sound console that has served the City well past its 8 year life expectancy. The new VI-3000 will provide a stable sound platform to serve the needs of the Playhouse for the next 8-10 years. 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: 4d'of July Fireworks Spectacular, Summer Movies and Concerts in the Park,World Music Concerts,Founders Festival Community Parade,Veteran's Day Celebration, Cinco de Mayo Celebration, Memorial Day, Cucamonga Challenge and Celebration of National Physical Fitness Month, and Springtime Movies in Town Square at Victoria Gardens. Contract Classes This year the Contract Classes program offered a variety of recreational, leisure time classes such as: Music, Dance, Fitness, Foreign Language, Music, 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. The City also offers contract classes that are specific to our special needs community. Special Needs The Community Services Department established the Special Needs Partnership Coalition this last year. This coalition is made up of representatives from organizations and businesses that provide services to the special needs community. The coalition meets on a monthly basis to discuss programming and services that are or can be offered to our participants with special needs. In addition,the City of Rancho Cucamonga established a Special Olympics Local Program. The City is currently offering the sports of soccer and bocce ball through Special Olympics. xvii Sports The Sports Division provides a wide variety of sports activities for Pee Wee, Youth and Adults within the Community and surrounding areas. Over 1800 participants participated in the Pee Wee sports program which includes baseball,basketball,and soccer. The youth sports program provides sports in basketball, football, volleyball, and sports clinics. This past fiscal year, the youth sports program and adult sports program underwent some changes. Youth basketball and flag football incorporated the use of contracted officials, and all youth sports across the board eliminated playoffs. The adult sports program saw a change when the City partnered with Major League Softball, a program previously run by the sports division. Major League Softball offers games throughout the week,with the exception of Saturdays,to men's,women's,seniors,and coed teams. In addition to softball,the sports division also offers a men's adult basketball league. Youth and Family The Community Services Department's Playschool program is for children ages one through five. Over 585 children attended classes focusing on building children's self-esteem, attention span and social development. The Teen Center, located inside Lions West Community Center, provides a place for local teens to participate in activities, workshops, and special events after school. The Teen 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. During the summer months,close to 2,400 children ages 2 through the teenage years attended one of our camp programs which included Camp Cucamonga Junior, Camp Cucamonga,Adventure Camp and Teen Camp. RC Family Resource Center The RC Family Resource Center, a hub for non-profit service organizations, hosts over 50 non- profit organizations providing emergency food and clothing, family crisis intervention, court recognized services, support groups, tax form preparation assistance, youth mental health, adult and youth life skill classes, parenting classes, and much more. Community Connection Services, a partner which provides vital services to the community with weekly food distribution, hygiene items, weekly clothing program, and employment preparation. The RC Family Resource Center also provides monthly and annual family events such as the monthly Family Fun Nights,the Annual Thanksgiving Basket and the family-friendly Halloween Spooktacular event which has over 1,500 attendees each year. These events are geared toward strengthening the family unit by creating an enjoyable experience for all family members. Active Net The Community Services and Library Services Departments have been using CLASS software for recreation activities management and point of sale services since 1999. Since our CLASS implementation 16 years ago, Active Network, the developer/vendor for CLASS, has acquired competitor's software and has focused on developing its flagship software,Active Net,which is a vendor-hosted solution over the Internet. Active Network will terminate its support for CLASS on November 30, 2017. Therefore, a Council goal was established to address the replacement of this essential upgrade to the new software well before this date. The Community Services Department upgraded to Active Net in April 2016. Active Network's Software-as-a-Service (SaaS) model will provide our City with an affordable way to focus resources on providing excellent services to our residents.Active Net eliminates the need for costly software and IT infrastructure investments. Active Network owns and maintains the entire data base and web server infrastructure. Utilizing the hosted Active Net solution will reduce and or xviii eliminate user licenses, servers or separate maintenance agreements. Active Network provides an integrated merchant account, secure public access and staff interface transactions while safely storing data backing it up every 30 minutes. Active Network offers significant upgrade incentives for current CLASS customers, including a CLASS Customer Loyalty Professional Service Conversion to Active Net Credit of $21,900 the amount previously allocated for CLASS maintenance. Registration The Registration Division is the main hub for Community Service's customer intake. Last fiscal year the Division processed approximately 30,000 registrations, approximately 900 park reservations and handled approximately $2.4 million dollars at the front counter. In addition, we maintained payments made via InstantRC(over$1 million in transactions). Park Ranger Program In the FY 2014/15 Budget, a pilot program consisting of two part time Park Rangers with planned future expansion was approved. The purpose of the Park Ranger program is to enhance Rancho Cucamonga's public safety initiatives by protecting and preserving parklands and open space, enforce regulations, provide community education and promote parks and open spaces as a vital amenity. The team identified current issues within the parks,trails and open spaces,determined the priorities of the program and established a comprehensive training program. After many months of planning and a few unintentional setbacks the City's first Park Ranger program launched during the summer of 2015. The Rangers actively patrol parks, trails and open spaces. They are clearly identified through uniforms, vehicles and bikes and are highly visible in key parks, trails and open spaces. They utilize new technology for CSD, portable tablets with citation enforcement capabilities, reporting, mapping and other features. We are aware that the impact of only 2 part time rangers will be limited and a future expansion to a combination of both full and part time rangers is necessary to achieve the desired objectives. Park Development Projects completed as of June 30,2016 include: • RC Sports Center Relocation Architectural/Design Services • Los Amigos Park Design • Demolition and Reclamation of existing structures at Los Amigos Park site • Family Restroom at LoanMart Stadium Projects awarded and/or started in Fiscal Year 2015/16 include: • Construction of Los Amigos Park(formerly Southwest Park) • Central Park Trailhead Improvements Architectural Design Services • Victoria Gardens Cultural Center Courtyard Architectural/Redesign Services • RC Sports Center Relocation xix Additional Department Activities Volunteer opportunities continued to grow and expand this past year as staff found new ways to utilize volunteers throughout the City. During the last year,volunteers worked at numerous events, community centers and activities. Annually, over 6,000 hours of volunteer services are provided by the Department's volunteer core. The Community Services Department values volunteers, and providing opportunities for citizen involvement is an important aspect of the philosophy of the City of Rancho Cucamonga and the Community Services Department. Police Department The City of Rancho Cucamonga contracts with the San Bernardino County Sheriff's Department for general law enforcement services. During FY 2015/16, the Police Department had 137 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),CPS/APS follow up team and Public Information Officer. Public safety is the City's highest priority. We strive to improve public safety while finding efficiencies through technology and innovation. The City recently purchased four "Zero" model electric motorcycles for use in discretely patrolling our City parks and the Pacific Electric Trail, and added a narcotics detection K9 to an existing deputy position. The Department will also be expanding its Public Safety Video Network which will serve to detect and resolve crimes,thereby serving as a force multiplier. The City will continue to take advantage of any available Federal and State funding opportunities. As the community continues to grow,the challenge will be to continue addressing these increased needs that affect the"quality of life"in Rancho Cucamonga and define our community as a safe one. Toward that effort we have expand the Solution Oriented Policing team to work collaboratively on quality of life topics such as blight,homeless population reduction, and sex trade crime reduction. 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 six fixed ALPRs camera locations located throughout the city and thirteen mobile ALPRs affixed to marked police cars. The ALPR system is expanding along the southern border of Rancho Cucamonga at 4th Street. Several ALPR's are scheduled for installation along the 4th Street corridor to capture traffic east and west on 4th Street as well as north bound into the city. Public Safety Video Network(PSVN) The Public Safety Video Network continues to expand with video cameras installed at the Metro- link Station. Additional video cameras are currently planned for City Hall and the Archibald Library. The infrastructure for the PSVN was installed during the construction of the Los Amigos Park. As new construction begins on City facilities,PSVN foundations will be installed to continue the expansion. xx Expansion of Solution Oriented Policing Detail 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. The Rancho Cucamonga Police Department works hand in hand with various City departments to ensure compliance with local regulations. This enforcement has been extremely successful by guaranteeing businesses operate in compliance with the law. The SOP team also conducts active shooter training. This training is designed to teach citizens how to react during an active shooter incident. The students are taught how to "run, fight, hide" when confronted with an armed active shooter threat. To date, several hundred citizens have taken the class. Community Engagement The Rancho Cucamonga Police Department believes strongly in maintaining a partnership between the Department and the citizens in the community. The Department regularly engages the community through events such as the monthly Citizens Activity Committee and Coffee with a Cop. Most recently, the Rancho Cucamonga Police Department was selected to participate in the Police Data Initiative (PDI). The Police Data Initiative is part of President Obama's 2I't Century Policing Initiative which supports transparency amongst police departments in an effort to elevate their community's trust. The Rancho Cucamonga Police Department posts data sets for the public to review. This increases openness and bolsters credibility and standing with community stakeholders. Fire Department 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. xxi During the 2015/16 fiscal year, District staff accomplished the following to maintain and improve existing services levels in accordance with Council approved goals: • Finalized plans and bid out the Fire All-Risk Training Center construction project • Completed a purchase of property to rebuild the San Bernardino Road Fire Station (172) at a new location • Purchased property for a future new Fire Station(178) • Reduced Community Facility District(CFD) fees by 5%beginning with Fiscal Year 2015/16 • Continued waiving Fire Inspection Fees Library Services The Library Services Department was once again very busy in Fiscal Year 2015/16. 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 75,000 people used a library computer and 44,000 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, 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 • Almost 44,000 youngsters came to our libraries to enjoy the popular story time programs. With twenty-two storytimes each week at our two locations, the baby, toddler, pre-school, school- aged and teen programs offer something for children of every age. • The Summer Reading Program had over 4,000 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 65,000 items to children during this past fiscal year. • Thanks to another grant 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 introduced a sensory storytime pilot program for children with all abilities. 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 2015/16, from school events to festivals to farmer's market visits to health fairs to National Night Out to neighborhood events. Staff have made at least one outreach visit each week, in addition to our daily bookmobile stops. xxii 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. In the upcoming year,these numbers may increase with the upgraded broadband speed. • 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 with over$150,000 in revenue. • 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 • Forty 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 100 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, there were many varied volunteer opportunities,from bookstore operations to tutoring to programming help to shelving to assisting with the Summer Reading Program. • The Friends of the Library volunteers accounted for thousands of volunteer hours for sorting, staffing, and managing the Friends Bookstore at both libraries. The Friends Bookstores raised over$135,000 for the Library in Fiscal Year 2015/16. 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 annual calendar of events. In addition,all Foundation members attended an in-depth fundraising training. Goals for Next Year • The Library will complete construction for Phase I of 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. xxiii • The Library is will complete the CENIC broadband initiative to bring high speed internet access to the libraries, opening up a myriad of programming opportunities to take advantage of those speeds. • The Library will complete a safety plan for the libraries, in partnership with Fire, Community Services, Public Works, and Police Department. 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. 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: • The City of Rancho Cucamonga was recognized by First Lady Michelle Obama at the White House for a celebratory event honoring the achievements made by local elected officials participating in the Let's Move! Cities, Towns and Counties (LMCTC) initiative. Mayor Michael was invited to speak at the White House event,highlighting the LMCTC work Rancho Cucamonga has accomplished to engage the community in its health improvement efforts. The City of Rancho Cucamonga is one of 52 cities that has achieved gold medals in each of the five goal areas, which include providing healthy school meals, opportunities for physical activity during and outside of school,and healthier early care and education programs. The City is also a designated All-Stars for going above and beyond the Let's Move Cities,Towns,and Counties program to promote healthy communities. • The California Health and Human Services Agency(CHHS)and the California Department of Public Health (CDPH) recognized the City of Rancho Cucamonga and Healthy RC as a community-based health innovation that advances the Let's Get Healthy California effort to make California the nation's healthiest state by 2022. The City of Rancho Cucamonga and Healthy RC was the only Southern California organization selected in the category, "Creating Healthy Communities." • The City of Rancho Cucamonga and Healthy RC received a $125,000 grant from The California Endowment to measure the impact of the Healthy RC initiative on the health and wellness of the community. • The California Association of Public Information Officers (CAPIO) awarded Healthy RC the 2016 Excellence in Communications Gold Award of Excellence for their School Safety Brochure, two Silver Awards of Distinction for Walk to School Day and the Healthy RC xxiv Strategic Planning and Execution documents,and two bronze awards for the Circulation Master Plan for Pedestrians and Bicyclists and the Grow Healthy Together workshop. • For the sixth 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 257 communities across the county and one of 30 California cities named 2016 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 2015/16 was to 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: • Completed construction of the SolarRC Expansion Project(1.8 Megawatts of solar power) at Central Park,Epicenter,Animal Center,Banyan and Day Creek Fire stations(May 2016) • Received the Beacon Platinum Level Spotlight Award for Sustainability Best Practices from the Institute for Local Government(June 2016) • Successful implementation of the Electric Vehicle(EV) payment system(June 2016) • Joined the San Bernardino Regional Energy Partnership (SBREP) to improve energy efficiency throughout city facilities and in the community(Feb 2016) • Launched the development of the City's first Sustainability Action Plan and hosted a successful Community Forum and Sustainability Expo (June 2016) 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, social media,website,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. Communications highlights include: • City-wide community participation in the 2015 Special Olympics World Games Host Town efforts, hosting athletes with intellectual disabilities from multiple countries with over 100 Volunteers and business engagement. • Website refresh launched in November 2015 • Enhanced State of the City Address • Nearly doubling of social media followers in 12 month period xxv 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 2015/16 Legislative Session,the City tracked 56 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 (SCAG), 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. In FY 2015/16, Mayor Dennis Michael became the first member from the League's Inland Empire Division to serve as President of the League of California Cities. During this period, Mayor Pro Tern Spagnolo also became President of the League's Inland Empire Division..At the Federal level, the City Manager's Office plays an active role in advocating for the City's priorities and Federal assistance for projects and programs. 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 is the lead department in developing and maintaining the City's online performance dashboard system. The dashboard currently displays public safety data for the Police and Fire Departments and is in the process of being expanded to include performance data for all areas of city operations including community development, governance and finance, health and sustainability, and community and cultural services. xxvi During FY 2015/16, the City was invited by the White House to participate in the Police Data Initiative, which includes leading law enforcement agencies, technologists and researchers from throughout the country who are committed to improving the relationship between citizens and police at the local level through the use of data. The City is the first agency in San Bernardino County, and one of the first mid-sized cities in the United States,to join this initiative. 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 prepares notices of public hearing for the newspaper,receives and opens bids for city projects,and maintains the Municipal Code book. In 2015,the office effectively administered and coordinated the November 3,2015 Special Election for West End Community Facilities District. In a continued effort to streamline processes and provide excellent customer service, the Office implemented an electronic and paperless filing system for both Fair Political Practices Commission Campaign Finance Disclosure and Statement of Economic Interest(Form 700) forms. 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 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 Division 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. Volunteers 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. xxvii 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. At the end of Fiscal Year 2015/16, the Animal Center formed an Animal Care Foundation to increase fundraising and the collection of donations to offset the cost of operations and improve specialized care opportunities for pets to help get them adopted. Increasing Adoptions In Fiscal Year 2015/16,the Animal Center continued its 24 hour a day neonatal kitten nursery. The objective of the nursery is to improve the success rate of 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 015/16, the Center partnered with NBC for a one day mega adoption event called#cleartheshelter. Additionally,the Animal Center partnered with our local Assemblyman for a three day adoption event called#Steinorth100. The nursery and two adoption events yielded an increase in the overall number of pets adopted. Medical Services The Center's veterinarians continued to expand the medical program. Two public spay and neuter programs,Snip RC(through a partnership with Western University)and Beat the Heat(spay/neuter for cats), were implemented to provide resident with low cost and no cost spay and neuter opportunities for their dogs and cats. The Center also started quarterly low cost vaccines clinics that were held in local parks throughout the City. To help with the work load and specialized surgeries without increasing costs, the Center's veterinarians 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—3rd and 4th 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, Bone Appetito (wine event) and several restaurant fundraisers. Funds raised will go directly back into more community programs in the upcoming fiscal year. The Community Outreach Division expanded their partnerships with local schools and businesses by attending events such as Hometown Hero, Kiwanis Cruise for Kids car show and Caffeinate with Kitties at local coffee shops. Program Growth In Fiscal Year 2015/16, the Animal Center restructured staff duties to create an Animal Behavior division whose goal is to enhance shelter enrichment programs for dogs and cats to keep them healthy and happy in our care. Programs such as playgroups were increased from 5 to 7 days a week. The Animal Center also funded an Animal Center Manager position to oversee day to day operations,marketing and social media and provide additional support to donors and supporters. A secretary position was unfunded to offset the costs of the new Manager position. xxviii The Department continues to expand its rescue and adoption partnerships with local private nonprofit groups 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 30 of the Center's small dogs to them for adoption. Administrative Services Group 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 Licensing, Special District Administration, and Innovation and Technology 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 2015/16 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 Finance Department Special Districts Division and Public Works Services Department. This year,that work expanded to support a new West-side Districts Citizens' Oversight Committee, in addition to the Planned Communities Citizens' Oversight Committee that was formed in 2014. Department of Innovation and Technology(DoIT) The 2015/16 fiscal year was the inaugural year for the Department of Innovation and Technology (DoIT), bringing together the City's Geographic Information Services (GIS) and Information Services (IS)Divisions into a single department focused on continually enhancing the value of the City's technology investments for internal customers and the community we serve. Over the course of the year, the Department has partnered on several projects in support of Council's broader initiatives including civic engagement, transparency in government, public safety, local art and culture, and promoting healthy lifestyles. In addition, the Department has continued expansion of the Rancho Enterprise GIS (REGIS) program, which provides contract GIS services to local government agencies across the State. The Department of Innovation and Technology received several awards over the past year, including recognition from the Urban Regional Information Systems Association (URISA), the California Geographic Information Association (CGIA), and the Municipal Information Systems Association of California (MISAC). In addition, the City of Rancho Cucamonga was ranked among the top-ten cities in the nation,based on comparative populations,in the 2016 Digital Cities Survey for the second year in a row. xxix Accomplishments for the Department include: • A $3 million complete overhaul of the City's data network, significantly improving security and resiliency and increasing network capacity from under 100 Mbps to 1 Gbps. • The addition of a dedicated ultra-high speed data network for the City's Library System, providing both the Archibald and Biane branches with 10 Gbps public internet service using the California Research and Education Network(Ca1REN). • The replacement of the City's outdated analog phone system with a voice-over-internet- protocol(VoIP) digital telephone system. • The acquisition of Microsoft Government Enterprise Licensing for Office 365, significantly expanding tools to enhance collaboration and streamline existing workflows across departments. • Completion of the development phase of Accela Land Management platform,moving the system into a maintenance mode. • Inclusion into the White House Police Data Initiative, supporting a nationwide initiative to provide open data on select public safety activities to the community. 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, and is in the process of transitioning the Special Districts Division from the former GIS/Special Districts Division to Finance. The Finance Department applied for and received its 28th 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 P consecutive GFOA Distinguished Budget Presentation Award. In early 2016, the Department completed the League of California Cities California Municipal Financial Health Diagnostic for the second year in a row. 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 Accounting and Financial Reporting and the Budget Management Divisions worked in conjunction with DoIT to identify a solution for the City to utilize in providing an open data technology system to its residents. A contract was entered into in June 2016 with SunGard Public Sector (the City's financial system provider) to implement Socrata's Open Budget Dashboard. Staff are currently in the process of mapping data and fine-tuning the appearance of the dashboard for unveiling by the end of the calendar year. The 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 2015/16 staff processed approximately 10,906 business license applications (8,671 renewals and 2,235 new filings), inspected 3,538 businesses, and collected revenues totaling$2,618,311. xxx The Special Districts Division is responsible for placing city parcels to the County tax rolls, tracking and paying debt service on the City's bonded indebtedness,ensuring compliance with the continuing disclosure requirements for each bonded district, and assisting with special district formations. During FY 2015/16, Special Districts staff provided support for the Measure A initiative in November 2015; participated in meetings, along with other Finance staff, for two citizens advisory committees pertaining to special districts —the Planned Communities Citizens' Oversight Committee and the West-side Citizens' Oversight Committee; worked with other Finance staff to revamp the Annual Engineer's Reports for City Council approval; and placed over $27.5 million in special taxes and assessments on the 2016/17 Tax Roll for the City's 35 special districts. The Division also assisted the Fire District in placing weed abatement tax liens on the 2016/17 Tax Roll in the total amount of$25,197. 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. 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: • Improved access to learning opportunities • Initiated recruitment practices to improve growth opportunities for existing employees • 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. Purchasing 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 spring of 2016,the Purchasing Division submitted an application for the 2016 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 xxxi only forty-five(45)agencies in California and one of only seventy-two(72)cities in the United States and Canada to receive the award in 2016. This is the eighth consecutive year that the Purchasing Division has been the recipient of the AEP award. • Efficiently disposed of surplus City assets through online bidding applications to generate $21,200 in additional revenue for the City. III. 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 (CAFR) for the fiscal year ended June 30,2015. 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-eight 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 of this 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 Group. 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. tlGli'yison submi 'Tamara L. Layne' City Manager Finance Director xxxii CITY OF RANCHO CUCAMONGA CITY OFFICIALS DUNE 30, 2016 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 James Frost City Clerk 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 Jason Welday 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 xxxiii CITY OF RANCHO CUCAMONGA ORGANIZATION CHART Citizens of Rancho Cucamonga City Clerk City Council City Treasurer City Attorney City Manager Administrative Animal Care Police Economic and Services and Services Department Community Adman/GIS/IS/Purch/Spec Dist Development Community Fire Finance Services District Library Human Services Resources Building and Engineering Public Works Planning Safety Services Services xxxiv Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rancho Cucamonga California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2015 */00 0 w�2�0 W.-0 Executive Director/CEO XXXV THIS PAGE INTENTIONALLY LEFT BLANK XXXV 1 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2016 Financial Section THIS PAGE INTENTIONALLY LEFT BLANK LS •000 •00• CPAs AND ADVISORS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rancho Cucamonga, California, (the City) as of and for the year ended June 30, 2016, 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. Auditor's 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. PrimeGlobal • . 714.672.0022 L L:*::: rr 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, 2016, 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. 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 plan and the schedule of plan contributions for the cost sharing multiple employer plan 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. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the 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. 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. 2 L L:*::: rr To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 29, 2016 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 November 29, 2016 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 MANAGEMENT'S DISCUSSION & ANALYSIS C,RANCHO UQAMONGA 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, 2016. 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 exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by$1,222,615,247 (net position). • The City's beginning net position of $1,174,845,064 has been increased by $2,274,076 as a result of certain restatements for the governmental activities. A detailed explanation of these restatements has been provided in Note 15 in the accompanying notes to financial statements. As a result of the restatements, the City's restated beginning net position is $1,177,119,140. • The City's total net position increased by $45,496,107, excluding the restatements for the governmental activities noted above, from current year activities. The change reflects increases of $43,913,774 in governmental activities and $1,582,333 in business-type activities. • At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of$448,469,896. This was the result of restatements to beginning fund balances of$2,274,076 and an increase of$24,147,110 from current year activities. 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, as either blended or discretely (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 other long-term assets(e.g., prepaid other post-employment benefits and net pension asset) and long-term liabilities (e.g., capital leases, claims and judgments payable, accrued employee benefits, net pension liabilities, 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 an 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. 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. 6 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 34 of this report). The City maintains 70 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 66 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 114 through 148 in this report. The City adopts an annual appropriated budget for its General Fund and other major special revenue funds. Budgetary comparison statements have been provided to demonstrate compliance with the budget. The comparisons can be found on pages 96 through 99 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. 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. The Sports Complex and RCMU are considered to be major funds of the City while REGIS Connect is reported as non-major. 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 200 through 202 in this report. The basic proprietary fund financial statements can be found on pages 35 through 37 of this report. 7 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 in notes to 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 private purpose trust funds is much like that used for proprietary funds, whereas, agency fund assets are offset by a liability to the party on whose behalf they are held for and have no measurement focus. 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 fund is provided in the form of combining statements found on pages 206 through 218 of this report. Notes to 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 financial statements begin on page 41 of this report. Government-wide Financial Analysis Our analysis focuses on the City's net position and the changes in net position as a result of the City's activities. Comparative total data for the prior year has been presented in the summary tables and charts. An analysis of the significant increases/decreases from the prior year is provided below. Net position, the difference between a government's assets and deferred outflows and its liabilities and deferred inflows, may serve, over time, as an 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, 2016, 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$1,222,615,247. Net Position June 30, 2016 (In Thousands) Governmental Business-Type Activities Activities Total 2016 2015 2016 2015 2016 2015 Current and other assets $ 520,133 $ 494,458 $ 13,238 $ 14,061 $ 533,371 $ 508,519 Net pension asset 4,076 5,114 175 225 4,251 5,339 Capital assets, net 739,590 726,527 28,183 25,870 767,773 752,397 Total assets 1,263,799 1,226,099 41,596 40,156 1,305,395 1,266,255 Deferred outflows related to pension 14,643 6,871 264 175 14,907 7,046 Total deferred outlow 14,643 6,871 264 175 14,907 7,046 Current and other liabilities 13,976 12,097 1,279 1,303 15,255 13,400 Long-term net pension liabilities 54,862 49,702 1,202 1,135 56,064 50,837 Long-term obligations outstanding 16,064 16,261 - - 16,064 16,261 Total liabilities 84,902 78,060 2,481 2,438 87,383 80,498 Deferred inflows related to pension 9,970 17,529 334 430 10,304 17,959 Total deferred inflow 9,970 17,529 334 430 10,304 17,959 Net position: Net investment in capital assets 738,556 723,399 28,183 25,869 766,739 749,268 Restricted 343,262 294,289 717 719 343,979 295,008 Unrestricted 101,752 119,694 10,145 10,875 11 1,897 130,569 Total Net position 1,183,570 1,137,382 39,045 37,463 1,222,615 1,174,845 8 The chart below displays the proportionate sections of the City's net position. Net Position June 30, 2016 $1,222,615,247 Net investment in.________ capital assets ---_-------_ 62.71% - Unrestricted 9.15% _Restricted for Restricted for \ Community Public benefit- ---- J / development Municipal Utility Restricted Rests cted \ projects o for Restricted Restricted \ 14.88% 0.06/o for Capital for Parks Restricted projects Communityfor Public and Restricted for services works for Fire 2.83% o o Recreation protection Public safety 0.44/0 3.72/0 0.24% 0 0.09% 5.88/o Percent (%)of Governmental Business-Type Total Net Net Position (In Thousands): Activities Activities Total Position Net Investment in Capital Assets $ 738,556 $ 28,183 $ 766,739 62.71% Restricted for: Community development projects 181,873 181,873 14.88% Public safety 1,128 1,128 0.09% Parks and Recreation 2,957 2,957 0.24% Fire protection 71,878 71,878 5.88% Public works 45,482 45,482 3.72% Community services 5,349 5,349 0.44% Capital projects 34,595 34,595 2.83% Public benefit-Municipal Utility 717 717 0.06% Unrestricted 101,752 10,145 111,897 9.15% Total Net Position $ 1,183,570 $ 39,045 $ 1,222,615 100.00% The largest portion of the City's net position represents the City's net investment in capital assets in the amount of $766,739,007 ($738,555,693 for governmental activities and $28,183,314 for business-type activities), or 63% 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 $343,978,950 ($343,261,614 for governmental activities and $717,336 for business-type activities), or 28% of total net position, and is dedicated to specific purposes such as community development projects, public safety, parks and recreation, fire protection, public works, community services, capital projects, and municipal utility for public benefit. The City's unrestricted net position is $111,897,290 ($101,752,275 for governmental activities and $10,145,015 for business-type activities)or 9%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. 9 Changes in Net Position During Fiscal Year 2015/16, total net position increased by $45,496,107 (net increases in governmental activities of $43,913,774 and in business-type activities of $1,582,333), or 61% from $28,261,901 in Fiscal Year 2014/15 before restatement. A restatement of beginning net position of$2,274,076 is reflected in the financial statements for the governmental activities as a result of prior year corrections. Additional information on the restatements can be found in Note 15 of the notes to financial statements. The details are illustrated in the table below from the statement of activities section of the financial report, and are explained later in this report. • Total assets for the current year were $1,305,395,544, an increase of $39,140,098 to the City's net position, or 3%, from the prior year amount of$1,266,255,446. The most significant changes are due to the increases in cash and investments, net capital assets, and land held for resale. ❖ Cash and investments increased by $18,859,259 primarily due to the increases in the following funds: (1) Citywide Infrastructure Improvement Fund in the amount of$10,708,321 as a result of reimbursements from various agencies such as San Bernardino Associated Governments (SANBAG), Cucamonga Water Valley District, and San Bernardino County Flood Control, for their share of operating and capital projects based on established reimbursement agreements; (2) Housing Successor Agency Fund in the amount of$5,203,163 as a result of the transfer of the remaining 2007B Housing Set-aside Tax Allocation Bond proceeds from the Successor Agency to the City's Housing Successor Agency in the amount of $4,173,409, as approved by the State Department of Finance, and obligated for the Disposition, Development and Loan Agreement between the City and Day Creek Senior Housing Partners; and (3) Fire District Fund in the amount of$2,880,189 due to the net effect of an increase from receiving the remaining cash balance from the dissolution of the Public Agency Self-Insurance System (PASIS) in the amount of$3,709,808 and an offsetting decrease due to capital expenditures for the purchase of land for the relocation of the San Bernardino Station and for the future Fire Station 178, as well as for the purchase of an aerial ladder truck. ❖ Capital assets (e.g., infrastructure and other capital assets such as buildings, vehicles, furniture and fixtures, etc.) increased by $15,376,407, net of accumulated depreciation. The total overall increase in capital assets in the amount of $32,438,230 is due to the following: (1) developer contributions to the City in the amount of $10,413,416 in the governmental funds, of which $5,133,066 are donated rights-of-way and $5,280,350 are donated infrastructure; (2) increase in construction-in-progress for various projects in the amount of $7,832,195 in governmental activities and $2,346,372 in business-type activities; (3) various land purchases in the amount of $6,812,645, predominantly for the Fire District's Station 178 and relocation of the San Bernardino Station in the amount of$4,203,295; and (4) various purchases of equipment and vehicles in the amount of$3,093,717. ❖ Land held for resale increased by$3,747,036 due to the property that was contributed to the City's Housing Successor Agency by a developer at the estimated fair value of$4,000,000; and paired with a restatement in the amount of $252,964 to account for the sale of land held for resale recorded in the Community Development Block Grant Fund in a prior period. • The net total of the pension related deferred outflows and inflows of resources, net pension liability and net pension asset for the current year were $47,209,653. This resulted in an increase of $9,200,628 to the government's net position, or 16%, from the prior year amount of$56,410,281. This is due to an increase in deferred outflow of resources related to contributions subsequent to the measurement period. Prior to the end of the fiscal year, the City established and provided initial funding for a Post-Employment Benefits Trust through Public Agency Retirement Services (PARS)for the purpose of pre-funding pension obligations. The exclusive benefit, irrevocable trust cannot be accessed by creditors and, as such, it can be accounted for as assets to fund the pension liability on the City's financial statements. Additionally, the trust permits the City, under federal and state law, to invest in a more diversified array of investments than CalPERS to maximize investment returns long term and reduce the City's liability. The pre-funding amounted to $5,598,000, of which $1,774,000 was contributed by the City and $3,824,000 was contributed by the Fire District. 10 Changes in Net Position Year Ended June 30,2016 (In Thousands) Governmental Business-Type Activities Activity Total 2016 2015 2016 2015 2016 2015 Revenues: Program Revenues: Charges for services $ 13,643 $ 18,005 $ 11,588 $ 12,319 $ 25,231 $ 30,324 Operating grants and contributions 14,464 8,216 - - 14,464 8,216 Capital grants and contributions 31,357 12,146 31,357 12,146 General Revenues: Taxes: Property taxes 78,064 75,350 - - 78,064 75,350 Admissions tax 4 28 196 70 200 98 Transient occupancy taxes 3,055 2,729 - - 3,055 2,729 Sales taxes 28,231 28,043 28,231 28,043 Franchise taxes 7,678 7,753 7,678 7,753 Intergovernmental-Motor vehicle in-lieu 70 73 - - 70 73 Use of money and property 7,645 6,691 375 310 8,020 7,001 Other 10,571 10,088 53 17 10,624 10,105 Total revenues 194,782 169,122 12,212 12,716 206,994 181,838 Expenses: General government 18,419 17,955 - - 18,419 17,955 Public safety-police 34,084 32,076 34,084 32,076 Public safety-fire protection 29,525 30,278 29,525 30,278 Public safety-animal center 2,697 2,723 2,697 2,723 Community development 14,653 14,900 14,653 14,900 Community services 13,852 14,995 13,852 14,995 Engineering and public works 36,298 29,181 36,298 29,181 Interest on long-term debt 806 239 - - 806 239 Sports Complex - - 2,663 2,536 2,663 2,536 Municipal Utility 8,436 8,342 8,436 8,342 REGIS Connect 65 57 65 57 Total Expenses 150,334 142,347 11,164 10,935 161,498 153,282 Increase(decrease)in net position before transfers and extraordinary item 44,448 26,775 1,048 1,781 45,496 28,556 Transfers (534) (201) 534 201 - - Extraordinary item - (295) - - (295) Increase(decrease)in net position 43,914 26,279 1,582 1,982 45,496 28,261 Net Position at Beginning of Year 1,137,382 1,174,949 37,463 36,697 1,174,845 1,211,646 Restatement of Net Position 2,274 (63,846) 1,216 2,274 (65,062) Net Position at End of Year $ 1,183,570 $ 1,137,382 $ 39,045 $ 37,463 $1,222,615 $ 1,174,845 The condensed statement of activities of the City's governmental and business-type operations for the year ended June 30, 2016 shows total net position increased by $45,496,107. Governmental activities increased the City of Rancho Cucamonga's net position by $43,913,774, accounting for approximately 97% of the total growth in net position, paired with an increase of$1,582,333 in the Business-Type activities' net position. The prior year's net position was restated to increase by$2,274,076 for Governmental activities. 11 Governmental Activities The following charts provide a snapshot of the City's governmental activities for Fiscal Year 2015-2016, showing the distribution of revenues by source as well as a comparison of revenues versus expenses by program. Revenues By Source Governmental Activities Taxes Year Ended June 30, 2016 60.12% $194,782,444 Other 5.43% Charges for Services Use of h•Aoney & 7.00% Property 3,92% Operating Contributions Capital Contributions and Grants and Grants 7 43% 16,10% Revenue and Expense By Function Governmental Activities Year Ended June 30,2016 (In Thousands) $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $- ■• ■ General General Public Safety- Public Safety- Public Safety- Community Community Engineering and Interest on Long- Revenues, Total Government Police Fire Protection Animal center Development Services Public Works Term Debt Extraordinary Governmental Gain and Activities Transfers Revenues $5,147 $1,416 $358 $215 $10,317 $3,741 $38269 $- $135,319 $194,782 Expenses $18,419 $34,084 $29,525 $2,697 $14,653 $13,852 $36,298 $806 $534 $150,869 ■Revenues ■Expenses 12 Governmental Activities (In Thousands) Total Cost Net Cost of Services of Services 2016 2015 2016 2015 General government $ 18,419 $ 17,955 $ (13,272) $ (11,905) Public safety-police 34,084 32,076 (32,667) (30,464) Public safety-fire protection 29,525 30,278 (29,166) (28,743) Public safety-animal center 2,697 2,723 (2,482) (2,515) Community development 14,653 14,900 (4,336) (10,933) Community services 13,852 14,995 (10,111) (11,135) Engineering and public works 36,298 29,181 1,970 (8,027) Interest on long-term debt 806 239 (806) (239) Total $ 150,334 $ 142,347 $ (90,870) $ (103,980) The City's Governmental activities increased its net position by$43,913,774 at the end of the fiscal year. This change is comprised of a net cost of services of$90,870,686 offset by general revenues of$134,784,460. As compared to the City's prior year outcome of $26,279,286, this is an increase of$17,634,488 or 67%. The most significant changes in the Governmental activities in revenues and expenses are discussed below: • The net cost of services decreased to $90,870,686 from the prior year amount of $103,979,778, a decrease in net cost of$13,109,092 from all areas of the governmental activities, which had a positive effect on the City's net position, primarily due to the following areas: ❖ Capital contributions and grants increased to $31,356,340 from the prior year amount of $12,145,954,an increase of$19,210,386, predominantly from the following areas: (1)Engineering and Public Works increased by$15,197,026 due to the receipt of donated infrastructure and rights- of-way from developers in the amount of$10,413,416, as previously discussed pertaining to the increase in capital assets, and 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 in the amount of$6,075,776; and (2) Community Development increased by$4,000,000 for the estimated fair value of property contributed to the Housing Successor Agency by a developer, as mentioned earlier in this report. ❖ Operating contributions and grants increased to $14,464,379 from the prior year amount of $8,216,190, an increase of$6,248,189, primarily in the following areas: (1)Engineering and Public Works increased by$2,795,569 due to the receipt of reimbursements that are mostly grant related; and (2) Community Development increased by $4,796,837 due to the transfer of the remaining $4,173,409 unspent 2007B Housing Set-aside Tax Allocation Bond proceeds from the Successor Agency to the City's Housing Successor Agency, as mentioned earlier in this report. Engineering and Public Works expenses increased to $36,298,028 from the prior year amount of $29,180,515, an increase of $7,117,513, due to the expenditure of Measure I funds for street maintenance and SAFETEA-LU grant funds for the Base Line/1-15 capital improvement project. • General Revenues and Transfers increased to $134,784,460 from the prior year amount of $130,259,064, an increase of$4,525,396, primarily due to the following areas: ❖ Revenue from taxes increased to $117,103,354 from the prior year amount of$113,976,425, an increase of$3,126,929. The increase in taxes is primarily due to a$2,714,049 increase in property taxes resulting from the County's annual inflation adjustment combined with new secured properties being added to the tax roll and positive home buying activity, as well as an increase in post-RDA property taxes. 13 ❖ Use of money and property revenues increased by$953,429 due to growth in the City's cash and investments as a result of current year operations. The change in investment valuation as of fiscal year end has been included in this category of revenues as well and reflects the temporary increase in the valuation of the City's cash and investments. Business-Type Activities The following chart reflects the City's Business-Type activities for Fiscal Year 2015/16, showing a comparison of revenues versus expenses by activity. Revenue and Expenses Business-Type Activities Year Ended June 30,2016 (In Thousands) $15,000 $12,S00 $10,000 $7,S00 $5,000 $2,S00 $ Sports Complex Municipal Utility REGIS Connect Total Business-Type Activities Revenues $2,315 $11,582 $105 $14,002 Expenses $2,663 $9,691 $65 $12,420 ■Revenues ■Expenses The City's Business-Type activities increased its net position by$1,582,333, a decrease of$400,282, or 20%, as compared to prior year amount of$1,982,615. The most significant changes in the Business-Type activities in revenues and expenses are discussed below: • The Sports Complex experienced a decrease in net position in the amount of $348,341, an improvement of$283,630 from the prior year decrease of$631,971. A portion of the decrease to the current fiscal year's net position is due to the planned usage of resources accumulated in the prior year to fund payroll liabilities as well as purchase commitments. The net impact of current year capital asset activity accounts for the remainder of the decrease. This activity included current year depreciation as well as the installation of a solar photovoltaic system, funded by an interfund loan that was in progress at fiscal year end. • The Municipal Utility experienced an increase in net position in the amount of$1,890,533, a decrease of$698,138 from the prior year amount of$2,588,671. The net increase in net position was due to: 1)fewer current year resources being utilized for capital expenditures allowing the Municipal Utility to grow its reserves for future needs; 2)less than anticipated usage of contract services; and 3)offsetting less than anticipated revenues from one-time line extension revenues from developers and cap and trade revenues. 14 • REGIS Connect experienced steady growth in its net position for its third year of operations, with an increase in net position in the amount of$40,141. 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. 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$448,469,896 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$110,516,940. Of the total General Fund balance, $6,304,659, or 6%, constitutes non-spendable reserves,which means that these reserves must be maintained intact; $4,256,949, or 4%, are restricted fund balances which are the result of external limitations on spending; $75,193,291, or 68%, are committed fund balances which have resulted in internally-imposed limitations placed upon the funds by the City Council; and the assigned reserves of$24,762,041, or 22%, are constrained by the City Council's intent for specific purposes, but are neither restricted nor committed, in accordance with City's policy. General Fund Balance June 30, 2016 $110,516,940 Committed Restricted 68.04% 3.85% MOWN Nonspendable 5.70% Assigned 22.41% Percent (%)of Total Fund General Fund Balance (In Thousands): Total Balance Nonspendable $ 6,305 5.70% Restricted 4,257 3.85% Committed 75,193 68.04% Assigned 24,762 22.41% Total Fund Balance $ 110,517 100.00% 15 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. In order to accommodate any changes to these commitments that may become necessary due to changes in operations or changes in City Council goals, staff annually brings this policy and resolution before the City Council or Fire Board members for approval at the end of each fiscal year. The City's Fund Balance Policy for the committed fund balances are as follows: • Changes in Economic Circumstances The funding goal for the fund balance committed for Changes in Economic Circumstances was increased from a six month reserve, or 50%, of the operating budgets for the City and the Fire District, to a nine month reserve, or 75%, of the operating budgets. Additionally, the number of City Council or Fire Board members required to change the amount of this commitment and/or the specific uses of these monies was increased from three to four members. 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. • 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 and the Fire District's fund balance committed for Worker's Compensation, General Liability, and Employment Practices Liability claims is established at a minimum goal of eight times the City's and the Fire District's total yearly SIRs for all types of insurance coverage. • PASIS Worker's Compensation Tail Claims The Fire District's fund balance committed for payment of outstanding Worker's Compensation claims remaining after the District's withdrawal from PASIS is established at a goal equal to the most recent fiscal year end Claims Cost Detail Report from the District's third-party administrator plus 15%. 16 • 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. • Vehicle and Equipment Replacement The Fire District's fund balance committed for the replacement of fire safety vehicles and equipment as determined based on the District's replacement criteria is established at a minimum goal of 50% of District vehicle and equipment replacement value. • Law Enforcement The City's General Fund balance committed for public safety purposes, including operations, equipment, capital outlay, personnel, and booking fees. The funding goal for this reserve is the equivalent of 100% of the most recently approved Schedule A from the San Bernardino County Sheriff's Department. • 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$448,469,896 which includes a restatement in the amount of$2,274,076 as discussed earlier, increased by$24,147,110, or approximately 6%from the prior year. The General Fund has a fund balance of$110,516,940, which has increased by$4,366,187, or 4%, from the prior year primarily due to net increases in revenues and expenditures and other financing uses in the amount of $2,302,893, and due to restatements of the beginning fund balance in the amount of $2,063,294, as previously discussed. The Citywide Infrastructure Improvement has a fund balance of $25,699,962, which has increased by $8,925,305, or 53%, from the prior year primarily due to reimbursements from SANBAG, Cucamonga Water Valley District, and San Bernardino County Flood Control, for their share of operating and capital projects based on established reimbursement agreements to be used for general infrastructure improvements throughout the City, as mentioned earlier in this report. The Housing Successor Agency Special Revenue Fund has a fund balance of $133,591,281, which has increased by $8,647,610, or 7%, from the prior year primarily due to the transfer of the remaining 2007B Housing Set-aside Bond proceeds from the Successor Agency to the Housing Successor Agency in the amount of $4,173,409 and property that was contributed by a developer for an estimated fair value of 17 $4,000,000 at no cost to the City, as discussed earlier. The housing bond proceeds will be used to fund future affordable housing projects. 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 $71,877,961, which has increased by $2,879,887, or 4%, from the prior year. The District has experienced increases in tax revenues and a one-time revenue as a result of the District's withdrawal from PASIS paired with an increase in capital expenditures to build a new fire station and purchase an aerial ladder truck. The net increase in revenues and expenditures amounted to $2,851,575 and a restatement of the beginning fund balance in the amount of$28,312. It should be noted that the total fund balance for the Fire District Special Revenue Fund of $71,877,961 is $2,868,570 less than the total fund balance per the District's component unit financial statements of $74,746,531. 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. 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 54 special revenue funds and 12 capital project funds. These funds have a combined fund balance of$106,783,752,which has increased by$1,602,197, or 2%,from the prior year. Proprietary Funds. The City's proprietary funds consist of three enterprise funds and two internal service funds. The City reports two major enterprise funds:the Sports Complex Fund,which accounts for the activities of the Sports Complex, and the Rancho Cucamonga Municipal Utility (RCMU) Fund, which accounts for the City's electric utility operations. The Rancho Cucamonga Enterprise Geographic Information Systems(REGIS) Connect Fund, which accounts for the City's enterprise Geographic Information Systems (GIS) services is reported as a nonmajor enterprise fund.. 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 $39,045,665 of which $28,183,314 represents the amount invested in capital assets and $717,336 is restricted for the purpose of public benefit through the Municipal Utility. Unrestricted net position amounts to $10,145,015. The increase in net position for the enterprise funds is $1,582,333,due to revenues exceeding expenditures during the year predominantly coming from the Municipal Utility. • Before transfers from the General Fund in the amount of $1,767,464, the Sports Complex Fund experienced a loss of$2,115,805. As discussed earlier, the decrease in the net position is due to the planned utilization of resources accumulated in the prior year as well as the net impact of current year capital asset activity. Taking into account the transfers from the General Fund the net decrease in the fund's net position is $348,341. • Before transfers to the General Fund in the amount of$1,255,350,the Municipal Utility Fund generated income(the net of revenues and expenses)in the amount of$3,145,883. The funding for the budgeted transfer to the General Fund is to support general City operations. Taking this transfer into consideration resulted in a net increase in the fund's net position of$1,890,533. • For its third full year of operations, REGIS Connect generated net income in the amount of$40,141. 18 Net position for the internal service funds is$12,195,918, of which$2,704,899 represents the amount invested in capital assets. Unrestricted net position amounts to $9,491,019 which will be used to cover operations, future equipment and vehicle replacements, and future computer equipment and technology replacements, as well a debt service payments. Total net position decreased for these funds by $1,177,296 due to operational costs. • Before the transfer from the General Fund in the amount of $251,730, the Equipment and Vehicle Replacement Fund experienced a loss in the amount of$840,149. After the transfer from the General Fund, the Equipment and Vehicle Replacement Fund experienced a decrease in net position in the amount of$588,419. • Before transfers from the General Fund in the amount of$305,980, from the City Technology Fund in the amount of $166,180, and from the Transportation Fund in the amount of $7,850, the Computer Equipment and Technology Replacement Fund experienced a decrease in net position in the amount of $1,068,887. After transfers, the Computer Equipment and Technology Replacement Fund experienced a decrease in net position in the amount of$588,877. 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. For the City's General Fund, ending revenues of $79,330,729 were $34,141 less than the final budgeted revenues of $79,364,870. The difference is due to offsetting variances within the revenue line items. The significant areas that showed positive variances from the budget are in the following areas: (1) Taxes were $569,506 more than anticipated primarily from sales and use tax; (2)Charges for Services, primarily from plan check fees and engineering fees, exceeded budget by$192,230; and (3)Fines and Forfeitures were$101,914 more than anticipated. In contrast, the significant areas that showed negative variances from the budget are: (1) Miscellaneous Revenue for reimbursements from the Fire District representing additional principal payments in the amount of$654,410; and (2) Transfers In from the Park Development Fund for an advance repayment in the amount of$300,000. Both of these items were budgeted to reflect the inflow of resources to the General Fund; however, they are accounted for within the balance sheet for financial reporting purposes. The remaining difference is due to offsetting variances within other line items. The General Fund's actual ending expenditures of$80,597,038 were $4,764,722 less than the final budget of $85,361,760. The significant areas that showed positive variances from the budget are in the following areas: (1)General Government—all functions in a total amount of$567,739 due to savings from salary, benefits, and contract services; (2) Public Safety — Police in the amount of $457,238 due to savings from technical investigative costs, vehicle operations and collision repair, and Sheriff contract services; (3) Public Safety — Animal Center in the amount of $137,540, mostly from salary savings; (4) Community Development in the amount of$656,286 due to savings from Planning's reimbursable contract services and other functions of the division; (5) Community Services in the amount of$231,627 mostly from salary savings; (6) Engineering and Public Works in the amount of $1,156,171 due to savings from salaries, contract services, water utilities and other operations; and (6)Capital Outlay in the amount of$1,601,762 due to partial spending on certain projects and other projects that were planned but not started during the fiscal year. 19 Capital Assets and Debt Administration Capital Assets As stated in the Overview of the Financial Statements, the financial statement format required by GASB Statement No. 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$767,773,310, net of depreciation, invested in a broad range of capital assets. This amount represents a net increase (including additions and deductions) of$15,376,407 from prior year amount of$752,396,903. A summary of capital assets follows: Capital Assets at Year-End For the Year Ended June 30, 2016 (Net of Depreciation, In Thousands) Governmental Business-Type Activities Activities Total 2016 2015 2016 2015 2016 2015 Land $ 91,606 $ 84,794 $ 5,451 $ 5,451 $ 97,057 $ 90,245 Right-of-way 237,065 231,932 - - 237,065 231,932 Construction in progress 48,541 51,685 2,346 1,828 50,887 53,513 Buildings and improvements 104,981 100,163 7,372 7,750 112,353 107,913 Equipment and vehicles 6,001 4,764 135 137 6,136 4,901 Furniture and fixtures 176 85 - 13 176 98 Infrastructure 249,793 251,410 12,879 10,690 262,672 262,100 Intangible 1,427 1,694 - 1 1,427 1,695 TOTALS $ 739,590 $ 726,527 $ 28,183 $ 25,870 $ 767,773 $ 752,397 As discussed earlier, the most significant changes in capital assets for governmental activities are the property purchases for the Fire District's Fire Station 178 and relocation of the San Bernardino station, contributions of right-of-way and infrastructure, and various purchases of equipment and vehicles. The net decrease in construction in progress (CIP) is due to projects that have been completed in the fiscal year and were transferred to building improvements, improvements other than buildings, and infrastructure in a total amount of$10,150,204. Additions to CIP during the year amount to $7,832,195 for building improvements for various fire stations, installation of solar photovoltaic systems in various locations, the relocation of the Family Sports Center, construction on the second floor of the Paul A. Biane Library, and other various park and street improvements. The most significant change in capital assets for business-type activities is the increase in CIP pertaining to the solar photovoltaic systems project at the Sports Complex. Additional information on the City's capital assets can be found in Note 5 of the notes to financial statements. 20 Debt Administration At year end, the City's governmental activities had total debt outstanding in the amount of $16,064,529 for capital leases, advances from Successor Agency, claims and judgments payable, and accrued employee benefits, compared to$16,261,452 in the prior year, a decrease of$196,923, or 1%from the prior year. There is no long-term debt of the business-type activities. Long-Term Debt For The Fiscal Year Ended June 30, 2016 (In Thousands) Governmental Acti\ities 2016 2015 Capital Leases $ 1,034 $ 1,564 Advances from Successor Agency 3,953 3,953 Claims and Judgments Payable 3,119 3,420 Accrued Employee Benefits 7,958 7,324 Total Long-Term Debt $ 16,064 '$ 16,261 Additional information on the City's outstanding debts can be found in Note 7 of the notes to financial statements. Economic Factors and Next Year's Budgets Since the nationwide recession began in Fiscal Year 2009-2010, in its third quarterly report for September 2016, the UCLA Anderson Forecast's quarterly outlook for the national economy foresees real gross domestic product growth in the 2.0% to 2.5% range throughout 2017 and 2018, where it has been for the past seven years. With the economy approaching full employment, employment growth is expected to slow down. The national unemployment rate is predicted to be in the 4.8% to 5.0% range throughout the forecast period. The UCLA forecast may change, given the unanticipated outcome of the Presidential Election. The UCLA Economic Outlook will include the Trump Presidency in its December 2016 Economic Outlook. The state's unemployment rate according to the Employment Development Department (EDD) as of October 2016 news release is now at 5.5%. According to the UCLA Anderson Forecast, in California, steady gains in employment are expected through 2018 (1.7% in 2017 and 1.1% in 2018), while the unemployment rate in the state is expected to decrease during the next two years. California's unemployment rate is expected to be insignificantly different from the U.S. rate at 5.4% by the end of the forecast period. Real personal income growth is forecasted to be 3.7% in 2017 and 3.6% in 2018. Home building will continue in California. However, in spite of the Governor's policy to ease building restrictions, not enough of new homes are foreseeable in the future and home prices will remain less affordable as new building fails to meet the demand. Locally, the following key economic indicators reflect the growth and prosperity of the City. • Modest growth in Sales Tax, Property Tax, Vehicle License Fees and Property Tax In-Lieu of VLF, as well as Development Fees. • Low unemployment. The City of Rancho Cucamonga's unemployment rate of 4.4% is well below the State average of 5.5% and San Bernardino County average of 5.9%. • Management's emphasis on economic development continues to attract businesses. In the first four months of 2016, the City issued 1,700 building permits,which was an increase of 16% over the same time period in 2015. Construction of hotel and retail development projects are picking up. Residential and commercial mixed use developments are being discussed. Based on the League of California Cities' 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. This tool was created to provide a way for cities to evaluate their overall financial condition using 14 key fiscal indicators. Rancho Cucamonga remains one of a handful of cities in California 21 that have both completed the Financial Health Diagnostic and shared those results publically. A summary of the City's results can be found in the Fiscal Year 2016/17 Adopted Budget on the City's website. The current growth that the City is experiencing is only just now getting the City back to or modestly exceeding its pre-recession peak. Essentially, it has taken the City nine (9) years to recover what was lost in the recession, during which time other costs, like utilities and contract costs, have continued to rise. Rancho Cucamonga has finally reached a point where from Fiscal Year 2016/17 and forward it should experience true new growth (as opposed to regaining ground lost during the recession). While the City's revenue picture is strong, it is challenged on the expenditure side with some new cost increases in key areas such as: • Increases in electricity and natural gas rates despite the City becoming more energy-efficient. • Increases in water rates cost, challenging staff with finding substantial ways to reduce water use. • Minimum wage increases due to an additional bill signed by Governor Brown in April 2016 that will raise minimum wage 50%to$15 per hour over the next six years starting in January 2017, impacting the City directly through the wages it pays its part-time employees and indirectly through its contracts with external vendors. • Increases in the cost of law enforcement services due primarily to increased public safety pension and labor costs as well as increased staffing levels. 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 2016/17 City General Fund Budget is $77,450,850 and for the fourth year in a row does not require the use of General Fund reserves. The operating budget represents a$3,177,330, or 4.3%, increase from Fiscal Year 2015/16. The recommended Fiscal Year 2016/17 operating budget for the Fire District is $33,242,760. This is a $1,194,310, or 3.7%, increase over Fiscal Year 2015/16. The budget is balanced without the use of reserves. The Fire District's budget also continues to redistribute operating expenses in various areas in order to improve accountability and transparency. The Fiscal Year 2016/17 Library budget is $4,730,730 which represents an increase of $237,550, or 5.3%, from Fiscal Year 2015/16. Additional details regarding the City's operating budget and its overall Fiscal Year 2016/17 Adopted Budget can be found on the City's website at https://www.citVofrc.us/citVhaII/admin/finance/budgeting.asp. Questions or requests for information regarding the Adopted Budget should be directed to the Finance Department at the address below. Contactinq 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 30,2016 Primary Government Governmental Business-Type Activities Activities Total Assets: Cash and investments $ 324,429,688 $ 14,848,671 $ 339,278,359 Receivables: Accounts 13,195,548 1,512,610 14,708,158 Taxes 9,897,716 24,000 9,921,716 Notes and loans 140,830,339 2,102 140,832,441 Accrued interest 228,112 9,517 237,629 Other loans 1,104,828 - 1,104,828 Grants 3,632,643 51,418 3,684,061 Internal balances 3,219,136 (3,219,136) - Prepaid costs 300,152 8,628 308,780 Deposits 64,312 - 64,312 Due from external parties/outside agencies 128,735 128,735 Prepaid other post employment benefits 15,212,763 - 15,212,763 Net pension asset 4,075,834 175,166 4,251,000 Land held for resale 7,173,247 - 7,173,247 Restricted assets: Cash with fiscal agent 716,205 - 716,205 Capital assets, not being depreciated 377,212,589 7,797,387 385,009,976 Capital assets, net of depreciation 362,377,407 20,385,927 382,763,334 Total Assets 1,263,799,254 41,596,290 1,305,395,544 Deferred Outflows of Resources: Deferred pension related items 14,643,499 264,603 14,908,102 Total Deferred Outflows of Resources 14,643,499 264,603 14,908,102 Liabilities: Accounts payable 8,858,987 865,253 9,724,240 Accrued liabilities 2,773,097 76,556 2,849,653 Unearned revenue 1,194,111 - 1,194,111 Deposits payable 44,811 337,472 382,283 Due to other governments 1,104,828 - 1,104,828 Noncurrent liabilities: Due within one year 7,630,799 7,630,799 Due in more than one year 8,433,730 - 8,433,730 Net pension liability 54,862,356 1,202,264 56,064,620 Total Liabilities 84,902,719 2,481,545 87,384,264 Deferred Inflows of Resources: Deferred pension related items 9,970,452 333,683 10,304,135 Total Deferred Inflows of Resources 9,970,452 333,683 10,304,135 Net Position: Net investment in capital assets 738,555,693 28,183,314 766,739,007 Restricted for: Community development projects 181,873,210 - 181,873,210 Public safety 1,127,975 1,127,975 Parks and recreation 2,956,807 2,956,807 Fire protection 71,877,961 71,877,961 Public works 45,481,813 45,481,813 Community services 5,348,706 5,348,706 Capital projects 34,595,142 - 34,595,142 Public benefit-Municipal Utility - 717,336 717,336 Unrestricted 101,752,275 10,145,015 111,897,290 Total Net Position $ 1,183,569,582 $ 39,045,665 $ 1,222,615,247 See Notes to Financial Statements 23 CITY OF RANCHO CUCAMONGA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2016 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government $ 18,418,827 $ 5,064,101 $ 82,560 $ - Public safety-police 34,083,785 1,040,776 375,655 - Public safety-fire protection 29,524,711 242,620 33,542 82,255 Public safety-animal center 2,697,430 215,147 - - Community development 14,653,176 309,230 6,007,910 4,000,000 Community services 13,852,277 3,316,077 425,309 - Engineering and public works 36,298,028 3,455,200 7,539,403 27,274,085 Interest on long-term debt 806,322 - - - Total Governmental Activities 150,334,556 13,643,151 14,464,379 31,356,340 Business-Type Activities: Sports Complex 2,663,119 169,099 - - Municipal Utility 8,436,122 11,336,608 - - REGIS Connect 65,042 82,300 - - Total Business-Type Activities 11,164,283 11,588,007 - - Total Primary Government $ 161,498,839 $ 25,231,158 $ 14,464,379 $ 31,356,340 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 Transfers Total General Revenues 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 $ (13,272,166) $ - $ (13,272,166) (32,667,354) - (32,667,354) (29,166,294) - (29,166,294) (2,482,283) - (2,482,283) (4,336,036) - (4,336,036) (10,110,891) - (10,110,891) 1,970,660 - 1,970,660 (806,322) - (806,322) (90,870,686) - (90,870,686) - (2,494,020) (2,494,020) - 2,900,486 2,900,486 - 17,258 17,258 - 423,724 423,724 (90,870,686) 423,724 (90,446,962) 78,063,648 - 78,063,648 4,063 196,385 200,448 3,055,397 - 3,055,397 28,231,405 - 28,231,405 7,678,384 - 7,678,384 70,457 - 70,457 7,644,579 375,435 8,020,014 10,570,641 52,675 10,623,316 (534,114) 534,114 - 134,784,460 1,158,609 135,943,069 43,913,774 1,582,333 45,496,107 1,137,381,732 37,463,332 1,174,845,064 2,274,076 - 2,274,076 $ 1,183,569,582 $ 39,045,665 $ 1,222,615,247 See Notes to Financial Statements 25 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2016 Special Revenue Funds Citywide Housing Infrastructure Successor General Improvement Agency Fire District Assets: Cash and investments $ 95,632,375 $ 25,732,999 $ 9,036,855 $ 74,748,509 Receivables: Accounts 1,622,057 9,050,272 - 1,075,967 Taxes 9,173,547 - - 470,153 Notes - - 140,830,339 - Accrued interest 64,898 14,454 5,795 62,311 Otherloans - - - - Grants - - - Prepaid costs 200,477 - 6,200 64,026 Deposits 20,000 - - - Due from other funds 1,046,303 - Advances to other funds 6,084,182 - Due from external parties/agency funds 128,735 - - Land held for resale - - 6,350,000 Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 113,972,574 $ 34,797,725 $ 156,229,189 $ 76,420,966 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 1,987,180 $ 123,334 $ 4,267 $ 736,619 Accrued liabilities 1,385,495 - - 937,816 Unearned revenues 40,000 - - Deposits payable 42,959 - Due to other governments - Due to other funds - - Advances from other funds - - - 2,868,570 Total Liabilities 3,455,634 123,334 4,267 4,543,005 Deferred Inflows of Resources: Unavailable revenues - 8,974,429 22,633,641 - Total Deferred Inflows of Resources - 8,974,429 22,633,641 - See Notes to Financial Statements 26 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2016 (CONTINUED) Other Total Governmental Governmental Funds Funds Assets: Cash and investments $ 109,291,723 $ 314,442,461 Receivables: Accounts 1,447,252 13,195,548 Taxes 254,016 9,897,716 Notes - 140,830,339 Accrued interest 73,196 220,654 Otherloans 1,104,828 1,104,828 Grants 3,632,643 3,632,643 Prepaid costs 29,449 300,152 Deposits 44,312 64,312 Due from other funds - 1,046,303 Advances to other funds - 6,084,182 Due from external parties/agency funds - 128,735 Land held for resale 823,247 7,173,247 Restricted assets: Cash and investments with fiscal agents 716,205 716,205 Total Assets $ 117,416,871 $ 498,837,325 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 5,503,921 $ 8,355,321 Accrued liabilities 449,786 2,773,097 Unearned revenues 1,154,111 1,194,111 Deposits payable 1,852 44,811 Due to other governments 1,104,828 1,104,828 Due to other funds 1,042,779 1,042,779 Advances from other funds - 2,868,570 Total Liabilities 9,257,277 17,383,517 Deferred Inflows of Resources: Unavailable revenues 1,375,842 32,983,912 Total Deferred Inflows of Resources 1,375,842 32,983,912 See Notes to Financial Statements 27 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2016 Special Revenue Funds Citywide Housing Infrastructure Successor General Improvement Agency Fire District Fund Balances: Nonspendable: Prepaid costs 200,477 - 6,200 64,026 Deposits 20,000 - - - Advances to other funds 6,084,182 - - - Restricted: Community development projects - - 133,585,081 Public safety-police - - - Parks and recreation - - Engineering and public works - - - Capital improvement projects 1,538,150 25,699,962 2,966,804 Street lighting - - - Landscape maintenance - - Library services - - Underground utilities Technology replacement 74,806 - 23,282 General plan update 227,329 - - Contractual obligation 1,850,761 - 191,195 Information technology 541,010 - - SB1186 certified access specialist services 24,893 - - Committed: Vehicle and equipment replacement - 3,630,871 Working capital 3,872,543 15,356,772 City facilities capital repair 25,501,009 - Changes in economic circumstances 17,794,138 8,890,876 Employee leave payouts 4,597,298 3,360,459 Self insurance 7,583,333 - Fire District facilities capital repair - 8,642,982 PERS rate stabilization 600,000 - 1,300,000 Family sports center replacement 7,104,660 - - PASIS worker's comp tail claims - 1,844,317 Law enforcement 8,140,310 - - Assigned: Radio system acquisition 501,722 - - Communications - 1,153,445 City infrastructure 19,020,323 - Capital projects - 24,209,283 Economic and community development special services 1,883,109 - Sphere of influence issues 2,269,910 Animal Center operations 401,278 - - GASB 31 unrealized gain 379,035 - 154,316 Mobile home park program 126,373 - - Continuing operations 180,291 - 89,333 Unassigned - - - Total Fund Balances 110,516,940 25,699,962 133,591,281 71,877,961 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 113,972,574 $ 34,797,725 $ 156,229,189 $ 76,420,966 See Notes to Financial Statements 28 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2016 Other Total Governmental Governmental Funds Funds Fund Balances: Nonspendable: Prepaid costs 29,449 300,152 Deposits 44,312 64,312 Advances to other funds - 6,084,182 Restricted: Community development projects 15,982,029 149,567,110 Public safety-police 1,127,975 1,127,975 Parks and recreation 2,956,807 2,956,807 Engineering and public works 45,481,813 45,481,813 Capital improvement projects 5,506,269 35,711,185 Street lighting 4,862,619 4,862,619 Landscape maintenance 14,770,204 14,770,204 Library services 5,348,706 5,348,706 Underground utilities 11,805,239 11,805,239 Technology replacement - 98,088 General plan update - 227,329 Contractual obligation - 2,041,956 Information technology - 541,010 S131186 certified access specialist services - 24,893 Committed: Vehicle and equipment replacement - 3,630,871 Working capital - 19,229,315 City facilities capital repair - 25,501,009 Changes in economic circumstances - 26,685,014 Employee leave payouts - 7,957,757 Self insurance - 7,583,333 Fire District facilities capital repair - 8,642,982 PERS rate stabilization - 1,900,000 Family sports center replacement - 7,104,660 PASIS worker's comp tail claims - 1,844,317 Law enforcement - 8,140,310 Assigned: Radio system acquisition - 501,722 Communications - 1,153,445 City infrastructure - 19,020,323 Capital projects - 24,209,283 Economic and community development special services - 1,883,109 Sphere of influence issues - 2,269,910 Animal Center operations - 401,278 GASB 31 unrealized gain - 533,351 Mobile home park program - 126,373 Continuing operations - 269,624 Unassigned (1,131,670) (1,131,670) Total Fund Balances 106,783,752 448,469,896 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 117,416,871 $ 498,837,325 See Notes to Financial Statements 29 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 30,2016 Fund balances of governmental funds $ 448,469,896 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. 735,891,454 Deferred outflows related to pension related items are not included in the governmental fund activity: Contributions made after the measurement date $ 12,614,624 Adjustment due to differences in proportions 1,923,575 Differences between expected and actual experiences 13,388 Differences between actual contributions and the proportionate share of contributions 91,912 14,643,499 Deferred inflows related to pension related items are not included in the governmental fund activity: Adjustment due to differences in proportions (255,315) Changes in assumptions (4,299,306) Net Difference between projected and actual earning on plan investments (2,167,827) Differences between expected and actual experiences (3,209,432) Differences between actual contributions and the proportionate share of contributions (38,572) (9,970,452) Long-term debt,compensated absences and total net pension liability are not included in the governmental fund activity: Advances from Successor Agency (3,953,624) Claims and judgments (3,118,846) Capital leases (40,660) Compensated absences (7,957,756) Net pension liability (54,862,356) (69,933,242) 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. 15,212,763 Net pension assets are not available to pay for current-period expenditures and therefore are not reported in the govenmental funds. 4,075,834 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. 32,983,912 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. 12,195,918 Net position of governmental activities $ 1,183,569,582 See Notes to Financial Statements 31 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30,2016 Special Revenue Funds Citywide Housing Infrastructure Successor General Improvement Agency Fire District Revenues: Taxes $ 65,148,696 $ - $ $ 36,965,379 Licenses and permits 4,041,565 - 21,516 Intergovernmental 654,768 9,539,195 - Charges for services 3,302,750 - 7,464 Use of money and property 1,203,940 313,940 461,517 1,074,355 Fines and forfeitures 1,090,684 - - 71,210 Contributions 80,541 - 4,173,409 100 Developer participation - - 4,000,000 - Miscellaneous 2,527,104 105,311 301,851 4,963,391 Total Revenues 78,050,048 9,958,446 8,936,777 43,103,415 Expenditures: Current: General government 13,973,640 - - - Public safety-police 33,256,123 - - Public safety-fire protection - - 33,128,929 Public safety-animal center 2,924,840 - - - Community development 4,464,219 - 289,167 Community services 4,477,673 - - Engineering and public works 10,734,740 763,365 - Capital outlay 4,193,860 269,776 7,047,866 Debt service: Principal retirement 9,394 - 3,303 Interest and fiscal charges 693 - - 146,065 Total Expenditures 74,035,182 1,033,141 289,167 40,326,163 Excess(Deficiency)of Revenues Over(Under)Expenditures 4,014,866 8,925,305 8,647,610 2,777,252 Other Financing Sources(Uses): Transfers in 1,255,350 - - 74,323 Transfers out (2,992,654) - - Sale of capital assets 25,331 - - Total Other Financing Sources (Uses) (1,711,973) - - 74,323 Net Change in Fund Balances 2,302,893 8,925,305 8,647,610 2,851,575 Fund Balances: Beginning of year 106,150,753 16,774,657 124,943,671 68,998,074 Restatements 2,063,294 - - 28,312 Beginning of year, as restated 108,214,047 16,774,657 124,943,671 69,026,386 End of Year $ 110,516,940 $ 25,699,962 $ 133,591,281 $ 71,877,961 See Notes to Financial Statements 32 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30,2016 Other Total Governmental Governmental Funds Funds Revenues: Taxes $ 17,589,610 $ 119,703,685 Licenses and permits 290,646 4,353,727 Intergovernmental 13,806,469 24,000,432 Charges for services 3,512,343 6,822,557 Use of money and property 2,621,827 5,675,579 Fines and forfeitures - 1,161,894 Contributions 463,081 4,717,131 Developer participation 3,795,528 7,795,528 Miscellaneous 2,647,653 10,545,310 Total Revenues 44,727,157 184,775,843 Expenditures: Current: General government 3,917,880 17,891,520 Public safety-police 268,172 33,524,295 Public safety-fire protection 47,729 33,176,658 Public safety-animal center - 2,924,840 Community development 10,191,854 14,945,240 Community services 8,098,061 12,575,734 Engineering and public works 14,922,622 26,420,727 Capital outlay 5,640,210 17,151,712 Debt service: Principal retirement 8,563 21,260 Interest and fiscal charges 609,466 756,224 Total Expenditures 43,704,557 159,388,210 Excess(Deficiency)of Revenues Over(Under)Expenditures 1,022,600 25,387,633 Other Financing Sources(Uses): Transfers in 994,052 2,323,725 Transfers out (596,925) (3,589,579) Sale of capital assets - 25,331 Total Other Financing Sources (Uses) 397,127 (1,240,523) Net Change in Fund Balances 1,419,727 24,147,110 Fund Balances: Beginning of year 105,181,555 422,048,710 Restatements 182,470 2,274,076 Beginning of year, as restated 105,364,025 424,322,786 End of Year $ 106,783,752 $ 448,469,896 See Notes to Financial Statements 33 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 30,2016 Net change in fund balances-total governmental funds $ 24,147,110 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 $ 17,151,712 Depreciation (13,432,543) Contributed capital assets 10,413,416 Gain/(loss)on sale of capital assets (1,139,553) 12,993,032 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 $ 21,260 Change in claims and judgments payable 300,960 322,220 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. (633,810) 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. (455,398) Changes in the net pension asset do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. (39,344) Pension obligation expenses is an expenditure in the governmental funds, but reduce the Net Pension Liability in the statement of net position. 9,171,433 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. (414,173) 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. (1,177,296) Change in net position of governmental activities $ 43,913,774 See Notes to Financial Statements 34 CITY OF RANCHO CUCAMONGA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30,2016 Business-Type Activities-Enterprise Funds Nonmajor Major Funds Fund Governmental Activities- Sports Municipal REGIS Internal Complex Utility Connect Total Service Funds Assets: Current: Cash and investments $ 1,161,780 $ 13,615,453 $ 71,438 $ 14,848,671 $ 9,987,227 Receivables: Accounts 27,005 1,462,115 23,490 1,512,610 - Taxes 24,000 - - 24,000 Notes and loans - 2,102 - 2,102 - Accrued interest 9,479 38 9,517 7,458 Grants 51,418 - 51,418 - Prepaid costs - 8,628 8,628 Net pension asset 112,810 62,356 - 175,166 - Total Current Assets 1,325,595 15,211,551 94,966 16,632,112 9,994,685 Noncurrent: Capital assets-net of accumulated depreciation 15,169,909 13,013,405 - 28,183,314 3,698,542 Total Noncurrent Assets 15,169,909 13,013,405 - 28,183,314 3,698,542 Total Assets 16,495,504 28,224,956 94,966 44,815,426 13,693,227 Deferred Outflows of Resources: Deferred pension related items 182,271 82,332 - 264,603 - Total Deferred Outflows of Resources 182,271 82,332 - 264,603 - Total Assets and Deferred Outflows of Resources $16,677,775 $28,307,288 $ 94,966 $45,080,029 $ 13,693,227 Liabilities, Deferred Inflows of Resources and Net Position: Liabilities: Current: Accounts payable $ 274,682 $ 590,571 $ - $ 865,253 $ 503,666 Accrued liabilities 56,344 19,926 286 76,556 - Deposits payable - 337,472 - 337,472 Due to other funds - 3,524 3,524 - Capitalleases - - - - 526,171 Total Current Liabilities 331,026 947,969 3,810 1,282,805 1,029,837 Noncurrent: Advances from other funds 3,215,612 - - 3,215,612 - Capitalleases - - - 467,472 Net pension liability 789,640 412,624 1,202,264 - Total Noncurrent Liabilities 4,005,252 412,624 - 4,417,876 467,472 Total Liabilities 4,336,278 1,360,593 3,810 5,700,681 1,4979309 Deferred Inflows of Resources: Deferred pension related items 234,441 99,242 - 333,683 - Total Deferred Inflows of Resources 234,441 99,242 - 333,683 - Net Position: Net investment in capital assets 15,169,909 13,013,405 28,183,314 2,704,899 Restricted for public benefit-Municipal Utility - 717,336 717,336 - Unrestricted (3,062,853) 13,116,712 91,156 10,145,015 9,491,019 Total Net Position 12,107,056 26,847,453 91,156 39,045,665 12,195,918 Total Liabilities, Deferred Inflows of Resources and Net Position $16,677,775 $28,307,288 $ 94,966 $45,080,029 $ 13,693,227 See Notes to Financial Statements 35 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30,2016 Business-Type Activities-Enterprise Funds Nonmajor Major Funds Fund Governmental Activities- Sports Municipal REGIS Internal Complex Utility Connect Total Service Funds Operating Revenues: Sales and service charges $ 169,099 $ 11,336,608 $ 82,300 $ 11,588,007 $ 291,130 Rent 176,767 - - 176,767 - Miscellaneous 504 52,171 - 52,675 - Total Operating Revenues 346,370 11,388,779 82,300 11,817,449 291,130 Operating Expenses: Salaries and benefits 1,365,789 460,261 - 1,826,050 - Maintenance and operations 578,913 6,738,584 65,042 7,382,539 1,016,850 Contractual services 261,333 482,266 - 743,599 - Depreciation expense 431,884 755,011 - 1,186,895 1,302,832 Total Operating Expenses 2,637,919 8,436,122 65,042 11,139,083 2,319,682 Operating Income(Loss) (2,291,549) 2,952,657 17,258 678,366 (2,028,552) Nonoperating Revenues(Expenses): Admissions tax 196,385 - - 196,385 - Interest revenue 4,559 193,226 883 198,668 169,614 Interest expense (25,200) - - (25,200) (50,098) Total Nonoperating Revenues(Expenses) 175,744 193,226 883 369,853 119,516 Income(Loss)Before Transfers (2,115,805) 3,145,883 18,141 1,048,219 (1,909,036) Transfers in 1,767,464 - 22,000 1,789,464 731,740 Transfers out - (1,255,350) - (1,255,350) - Changes in Net Position (348,341) 1,890,533 40,141 1,582,333 (1,177,296) Net Position: Beginning of Year 12,455,397 24,956,920 51,015 37,463,332 13,373,214 End of Fiscal Year $ 12,107,056 $ 26,847,453 $ 91,156 $ 39,045,665 $ 12,195,918 See Notes to Financial Statements 36 CITY OF RANCHO CUCAMONGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2016 Business-Type Activities-Enterprise Funds Nonmajor Major Funds Fund Governmental Activities- Sports Municipal REGIS Internal Complex Utility Connect Total Service Funds Cash Flows from Operating Activities: Cash received from customers and users $ 344,101 $ 11,495,816 $ 91,012 $ 11,930,929 $ 294,649 Cash paid to suppliers for goods and services (642,084) (7,508,841) (67,182) (8,218,107) (656,177) Cash paid to employees for services (1,395,067) (499,522) (1,894,589) Cash received from(payments to)others 504 52,171 52,675 Net Cash Provided(Used)by Operating Activities (1,692,546) 3,539,624 23,830 1,870,908 (361,528) Cash Flows from Non-Capital Financing Activities: Cash transfers in 1,767,464 - 22,000 1,789,464 731,740 Cash transfers out - (1,255,350) - (1,255,350) - Amounts paid to other funds - - (13,558) (13,558) Admissions tax received 172,385 - - 172,385 - Net Cash Provided(Used)by Non-Capital Financing Activities 1,939,849 (1,255,350) 8,442 692,941 731,740 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (2,401,262) (1,099,410) - (3,500,672) (1,372,429) Principal paid on capital debt - (508,513) Interest paid on capital debt - (50,098) Interest paid on interfund financing (25,200) - (25,200) Advance from other funds 3,215,612 - 3,215,612 Net Cash Provided(Used)by Capital and Related Financing Activities 789,150 (1,099,410) - (310,260) (1,931,040) Cash Flows from Investing Activities: Interest received 4,559 199,909 858 205,326 176,474 Net Cash Provided(Used)by Investing Activities 4,559 199,909 858 205,326 176,474 Net Increase(Decrease)in Cash and Cash Equivalents 1,041,012 1,384,773 33,130 2,458,915 (1,384,354) Cash and Cash Equivalents at Beginning of Year 120,768 12,230,680 38,308 12,389,756 11,371,581 Cash and Cash Equivalents at End of Year $ 1,161,780 $ 13,615,453 $ 71,438 $ 14,848,671 $ 9,987,227 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ (2,291,549) $ 2,952,657 $ 17,258 $ 678,366 $ (2,028,552) Adjustments to reconcile operating income(loss) net cash provided(used)by operating activities: Depreciation 431,884 755,011 - 1,186,895 1,302,832 (Increase)decrease in accounts receivable (1,765) 142,425 8,712 149,372 3,519 (Increase)decrease in grants receivable - (51,418) - (51,418) - (Increase)decrease in net pension asset 32,493 73,177 105,670 (Increase)decrease in deferred outflows from pensions (62,660) (26,469) (89,129) (Increase)decrease in prepaid expense - 47 47 - Increase(decrease)in accounts payable 185,005 (290,461) (2,426) (107,882) 360,673 Increase(decrease)in accrued liabilities 13,157 2,423 286 15,866 - Increase(decrease)in deposits payable - 68,201 - 68,201 Increase(decrease)in net pension liability 47,351 (35,928) 11,423 Increase(decrease)in deferred inflows from pensions (46,462) (50,041) - (96,503) Total Adjustments 599,003 586,967 6,572 1,192,542 1,667,024 Net Cash Provided(Used)by Operating Activities $ (1,692,546) $ 3,539,624 $ 23,830 $ 1,870,908 $ (361,528) 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 37 CITY OF RANCHO CUCAMONGA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2016 Private- Purpose Trust Fund Successor Agency Agency of the Funds Former RDA Assets: Cash and investments $ 19,787,541 $ 21,291,018 Receivables: Accounts 219,021 305,314 Taxes 60,975 - Accrued interest 5,270 - Developer loans - 11,581,818 Prepaid bond insurance - 2,180,627 Advances to City - 3,953,624 Restricted assets: Cash and investments with fiscal agents 4,047,343 1,512,636 Capital assets: Capital assets, not being depreciated - 1,625,585 Capital assets, net of accumulated depreciation - 38,284,050 Total Assets $ 24,120,150 80,734,672 Liabilities: Accounts payable $ 62,775 $ - Accrued liabilities 24,434 - Accrued interest - 5,357,200 Deposits payable 7,987,065 - Payable to trustee 15,950,438 - Due to external parties/other agencies 95,438 - Long-term liabilities: Due in one year - 10,815,871 Due in more than one year - 321,451,632 Total Liabilities $ 24,120,150 337,624,703 Deferred Inflows of Resources: Deferred charges on refunding 2,191,707 Total Deferred Inflows or Resources 2,191,707 Net Position: Held in trust for other purposes (259,081,738) Total Net Position $ (259,081,738) See Notes to Financial Statements 38 CITY OF RANCHO CUCAMONGA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30,2016 Private- Purpose Trust Fund Successor Agency of the Former RDA Additions: Taxes $ 30,144,821 Interest and change in fair value of investments 78,509 Gain on sale of fixed asset 770,147 Gain on loan forgiveness 8,072,900 Total Additions 39,066,377 Deductions: Administrative expenses 1,281 Contractual services 2,458,766 Interest expense 15,253,511 Depreciation expense 1,749,950 Contributions to City 5,001,733 Payment of prior pass-through agreement 4,243,979 Total Deductions 28,709,220 Net Position: Beginning of year (269,438,895) Net Position- End of the Year $ (259,081,738) See Notes to Financial Statements 39 THIS PAGE INTENTIONALLY LEFT BLANK 40 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of Entity The City of Rancho Cucamonga was incorporated on November 30, 1977, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City operates under a council-manager form of government and provides its citizens with a full range of municipal services. It is governed by an elected five-member board. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Rancho Cucamonga (the City) and its component units, entities for which the City is considered financially accountable. The inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga is based on the provisions of GASB Statement No. 14 and amended with GASB 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: 1. The members of the City Council also act as the governing body of the Rancho Cucamonga Public Improvement Corporation (the Improvement Corporation), the Rancho Cucamonga Fire Protection District (the Fire District), the Rancho Cucamonga Library (the Library) and the Rancho Cucamonga Public Financing Authority (the Financing Authority). 2. The Improvement Corporation, the Fire District, the Library and the Financing Authority are managed by employees of the City. A portion of the City's general overhead costs is allocated to the Fire District and the Library. 3. The City, the Improvement Corporation, the Fire District, the Library and the Financing Authority are financially interdependent. They provide financial benefit/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, 2016 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. The effect of interfund activity has been removed from these statements, except for the interfund services provided and used. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 42 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for sales tax 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. 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. 43 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. • The Municipal Utility Fund accounts for the costs of labor and materials used in the operation, maintenance, construction and consumption of electric services to certain residential, commercial, industrial customers within the City. Additionally, the City reports the REGIS Connect Fund which 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. This is reported as a nonmajor proprietary fund. Additionally, the City reports the following fund types: • Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes. • Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by the proprietary funds). • Internal service funds account for the financial transactions related to repair, replacement and maintenance of City-owned vehicles and equipment and the City's general information systems and telecommunications hardware and software. • 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. 44 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and internal service funds are charges to customers for sales and services. Operating expenses for 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. 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. These are accounted for using the consumption method, and, accordingly, the expenditure is recorded in the period in which the goods or services are received. 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. 45 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 land, building improvements, improvements other than buildings, equipment and vehicles, furniture and fixtures, infrastructure (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost when purchased or constructed. Donated capital assets are recorded at the estimated price that would be paid to acquire the asset at the date of acquisition. 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. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Years Building improvements 10-50 Improvements other than buildings 10-40 Computer equipment and software 3-15 Equipment and vehicles 3-20 Furniture and fixtures 3-20 Infrastructure 10-75 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, for differences in expected versus actual experiences, for adjustments due to differences in proportions and for differences in actual contributions versus the proportionate share of the risk pool's contributions 46 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) made to the pension liability, all of 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, 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 changes in assumptions, differences between expected and actual experiences, the net difference between projected and actual earnings on pension plan investments, adjustments due to differences in proportions and differences in actual contributions versus the proportionate share of the risk pool's contributions made to the pension liability. These amounts are amortized over the expected average remaining service life time, with the exception of the net difference between projected and actual earnings on pension plan investments, which is amortized straight-line over a five year period. The government also reports deferred inflows for deferred charges on debt refunding in the fiduciary statement of net position. A deferred charge on refunding results from the difference in carrying value of refunded debt and its reacquisition price. The amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. 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: 47 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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 General Fund is the only fund that can report a positive unassigned fund balance amount. In governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to these purposes, it may be necessary to report a negative unassigned fund balance in that fund. 48 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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: Changes in Economic Circumstances The City's General Fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the City General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the Fire District's operating budget for the upcoming fiscal year. 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 or Fire District being insufficient to cover expenditures for one or more fiscal years. The City Council or Fire Board may, by the affirming vote of four members, change the amount of this commitment and/or the specific uses of these monies. City Facilities Capital Repair The City's General Fund balance committed for City facilities capital repair and property acquisition is established at a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for governmental activities. 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. 49 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Self-Insurance The City's General Fund balance and the Fire District's fund balance committed for payment of Worker's Compensation, General Liability, and Employment Practices Liability claims is established at a minimum goal of eight times the City's and the District's total yearly SIRs for all types of insurance coverage. PASIS Worker's Compensation Tail Claims The Fire District's fund balance committed for payment of outstanding Worker's Compensation claims remaining after the District's withdrawal from PASIS is established at a goal equal to the most recent fiscal year end Claims Cost Detail Report from the District's third-party administrator plus 15%. Employee Leave Payouts The City's General Fund balance and the Fire District's fund balance committed for employee leave payouts as valued in accordance with the City's labor contracts as of the last day of the fiscal year. PERS Rate Stabilization The City's General Fund and the 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 year's projection. Vehicle and Equipment Replacement The Fire District's fund balance committed for the replacement of fire safety vehicles and equipment as determined based on the District's replacement criteria is established at a minimum goal of 50% of District vehicle and equipment replacement value. Law Enforcement The City's General Fund balance committed for public safety purposes, including operations, equipment, capital outlay, personnel, and booking fees. The funding goal for this reserve is the equivalent of 100% of the most recently approved Schedule A from the San Bernardino County Sheriff's Department. 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. 50 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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." 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 51 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. e. Effect of New Accounting Standards During the fiscal year ended June 30, 2016, the City implemented the following Governmental Accounting Standards Board (GASB)standards: GASB Statement No. 72 — Fair Value Measurement and Application - effective after June 15, 2015. This statement addresses accounting and financial reporting issues related to fair value measurements. This statement provides guidance for determining a fair value measurement for financial reporting purposes, and provides guidance for applying fair value to certain investments. 52 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 II. STEWARDSHIP Note 2: Stewardship, Compliance and Accountability a. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in progress at year-end are completed. They do not constitute expenditures or estimated liabilities. The following funds have encumbrances at June 30, 2016: General Fund $ 3,569,202 Citywide Infrastructure Improvement Fund 1,593,851 Fire District Fund 3,247,332 Other Governmental Funds 8,314,869 b. Deficit Fund Balances or Net Position The following nonmajor funds have a deficit at June 30, 2016: Special Revenue Funds: Pedestrian Grant $ 9,543 Proposition 84- Park Bond Act 980,763 Energy Efficient&Conservation Block Grant 96 Senior Outreach Grant 5,267 Safe Routes to School Program 92,839 Foothill Blvd. Maintenance 1,433 Emergency Management Performance Grant 30 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, 2016 III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2016, cash and investments were reported in the accompanying financial statements as follows: Governmental activities $ 325,145,893 Business-type activities 14,848,671 Fiduciary funds 46,638,538 Total Cash and Investments $ 386,633,102 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, 2016, the carrying amount of the City's deposits was $33,897,253 and the bank balance was $34,898,292. The $1,001,039 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, 2016 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. Credit Risk The City's investment policy limits investments in medium-term notes (MTN's) in short-term rating of "AX or better. As of June 30, 2016, 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" by Moody's and by S&P at June 30, 2016. All securities were investment grade and were legal under State and City law. As of June 30, 2016, 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, 2016, the City's deposits (bank balances) were insured by the Federal Depository Insurance Corporation up to $250,000 and the remaining balances were collateralized under California Law. As of June 30, 2016, the cash and investments held by Bond Trustee are uninsured and uncollateralized. 55 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016, 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 22.88% Federal Home Loan Bank 13.10% Federal Home Loan Mortgage Corporation 12.50% Federal National Mortgage Association 18.63% Municipal Bonds 5.80% 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, 2016, the City had the following investments and original maturities: 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 $ 71,741,665 $ - $ - $ - $ 71,741,665 Federal Governmental Agencies Federal Farm Credit Bank - 7,507,865 28,942,140 44,270,864 80,720,869 Federal Home Loan Bank - 2,509,763 37,669,573 6,028,398 46,207,734 Federal Home Loan Mortgage Corp. - - 17,516,282 26,566,467 44,082,749 Federal National Mortgage Assoc. - - 27,561,348 38,139,786 65,701,134 Municipal Bonds 3,382,810 200,962 11,383,995 5,507,326 20,475,093 Corporate Bonds - - 4,552,569 - 4,552,569 Commercial Paper 8,983,102 - - - 8,983,102 Certificates of Deposits 3,994,750 - - - 3,994,750 Investments with Fiscal Agents: Money Market Funds 6,276,184 - - - 6,276,184 $ 94,378,511 $ 10,218,590 $ 127,625,907 $ 120,512,841 $ 352,735,849 56 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 3: Cash and Investments (Continued) Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2016: Level Investments by fair value level Totals 1 2 3 Local Agency Investment Fund $ 71,741,665 $ - $ 71,741,665 $ - Federal Governmental Agencies Federal Farm Credit Bank 80,720,869 80,720,869 - - Federal Home Loan Bank 46,207,734 46,207,734 - - Federal Home Loan Mortgage Corporation 44,082,749 44,082,749 - - Federal National Mortgage Association 65,701,134 65,701,134 - - Municipal Bonds 20,475,093 - 20,475,093 - Corporate Bonds 4,552,569 4,552,569 - Commercial Paper 8,983,102 8,983,102 - Certificates of Deposits 3,994,750 - 3,994,750 - Totals 346,459,665 $ 236,712,486 109,747,179 - Investments measured at amortized cost Cash with Fiscal Agents Money Market Funds 6,276,184 Total Investments $ 352,735,849 Deposits and securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Local Agency Investment Funds classified in Level 2 of the fair value hierarchy are valued using specified fair market value factors. Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes. Note 4: Notes and Loans Receivables Notes and loans receivables consist of the following at June 30, 2016: 1. 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, 2016, the outstanding balance amounts to $2,976,179, including accrued interest of $10,239. Accrued interest is offset by deferred revenue. 57 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 4: Notes and Loans Receivables (Continued) 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, 2016, the advances paid against this line of credit amount to $40,457,658 and accrued interest amounts to $2,702,724 for a total of $43,160,382. 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, 2016, advances paid against this line of credit amounts to $21,638,113 and accrued interest amounts to $4,075,964 for a total balance of$25,714,077. 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 loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2016, the advances paid against this line of credit amounted to $9,000,000 and accrued interest amounts to $2,598,121 for a total of $11,598,121. 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 58 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 4: Notes and Loans Receivables (Continued) of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2016, the advances paid against this line of credit amounted to $6,499,910 and accrued interest amounts to $768,916 for a total of $7,268,826. 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, 2016, the advances paid against this line of credit amounted to $2,092,087 and accrued interest amounts to $112,998, for a total of $2,205,085. 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 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, 2016, the advances paid against this line of credit amounted to $25,868,857, and accrued interest amounts to $4,380,748, for a total of $30,249,605. 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 59 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 4: Notes and Loans Receivables (Continued) 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, 2016, the outstanding balance amounts to $9,800,043, including accrued interest of $3,870,862. 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, 2016, the outstanding balance amounts to $4,274,400 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, 2016, 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, 2016, the outstanding balance amounts to $3,540,708 with no interest due. Total notes and loans receivables for governmental activities at June 30, 2016, including accrued interest of$18,520,572, amounted to $140,830,339. 60 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 5: Capital Assets Governmental activities capital assets for the year ended June 30, 2016, was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental Activities: Capital assets,not being depreciated: Land $ 84,794,142 $ 6,812,645 $ $ $ 91,606,787 Right of way 231,931,613 5,133,066 237,064,679 Construction-in-progress 51,685,070 7,832,195 (825,938) (10,150,204) 48,541,123 Total Capital Assets, Not Being Depreciated 368,410,825 19,777,906 (825,938) (10,150,204) 377,212,589 Capital assets,being depreciated: Building Improvements 117,407,626 203,793 2,975,393 120,586,812 Improvement other than buildings 29,045,977 216,838 5,898,449 35,161,264 Equipment and vehicles 30,760,046 3,093,717 (127,918) - 33,725,845 Furniture and fixtures 1,710,049 133,841 - 1,843,890 Infrastructure 459,415,284 5,511,463 (763,465) 1,276,362 465,439,644 Intangible 3,276,888 - - 3,276,888 Total Capital Assets, Being Depreciated 641,615,870 9,159,652 (891,383) 10,150,204 660,034,343 Less accumulated depreciation: Building improvements 35,794,000 3,136,724 - 38,930,724 Improvement other than buildings 10,497,064 1,339,574 11,836,638 Equipment and vehicles 25,996,022 1,856,659 (127,918) 27,724,763 Furniture and fixtures 1,624,817 43,509 1,668,326 Infrastructure 208,005,099 8,091,421 (449,850) 215,646,670 Intangible 1,582,327 267,488 1,849,815 Total Accumulated Depreciation 283,499,329 14,735,375 (577,768) - 297,656,936 Total Capital Assets, Being Depreciated,Net 358,116,542 (5,575,723) (313,615) 10,150,204 362,377,407 Governmental Activities Capital Assets,Net $ 726,527,366 $ 14,202,183 $ (1,139,553) $ - $ 739,589,996 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government $ 367,069 Public safety-police 534,583 Public safety-fire protection 759,849 Engineering and public works 9,651,781 Community development 69,141 Community services 2,050,120 Internal Service 1,302,832 Total Governmental Activities $ 14,735,375 61 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 5: Capital Assets (Continued) Business-type activities capital assets for the year ended June 30, 2016, was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Business-Type Activities: Capital assets, not being depreciated: Land $ 5,451,015 $ - $ $ - $ 5,451,015 Construction-in-progress 1,827,942 2,346,372 - (1,827,942) 2,346,372 Total Capital Assets, Not Being Depreciated 7,278,957 2,346,372 (1,827,942) 7,797,387 Capital assets, being depreciated: Building improvements 17,225,973 - - 17,225,973 Improvement other than buildings 3,797,415 54,889 - 3,852,304 Equipment and vehicles 511,863 - 111,285 623,148 Furniture and fixtures 117,289 - (111,285) 6,004 Infrastructure 16,985,625 1,099,411 1,827,942 19,912,978 Intangible 25,858 - - 25,858 Total Capital Assets, Being Depreciated 38,664,023 1,154,300 1,827,942 41,646,265 Less accumulated depreciation: Building improvements 9,476,456 431,198 - 9,907,654 Improvement other than buildings 3,797,415 686 - 3,798,101 Equipment and vehicles 374,569 16,034 97,559 488,162 Furniture and fixtures 103,563 - (97,559) 6,004 Infrastructure 6,296,064 738,495 - 7,034,559 Intangible 25,376 482 - 25,858 Total Accumulated Depreciation 20,073,443 1,186,895 - - 21,260,338 Total Capital Assets, Being Depreciated, Net 18,590,580 (32,595) - 1,827,942 20,385,927 Business-Type Activities Capital Assets, Net $ 25,869,537 $ 2,313,777 $ - $ - $ 28,183,314 Depreciation expense was charged to functions/programs of the primary government as follows: Business-Type Activities: Sports Complex $ 431,884 Municipal Utility 755,011 Total Business-Type Activities $ 1,186,895 62 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2016 was as follows: Due To/From Other Funds Due to Other Funds Nonmajor Nonmajor Governmental Enterprise Funds Funds Fund Total Due From Other Funds: General Fund $ 1,042,779 $ 3,524 $ 1,046,303 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, 2016. Advances To/From Other Funds Advances from Other Funds Fire Sports Funds District Complex Total Advances to Other Funds: General $ 2,868,570 $ 3,215,612 $ 6,084,182 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, 2016, the outstanding balance amounted to $2,868,570. On September 2, 2015, the General Fund advanced $3,215,612 to the Sports Complex to provide funding for the installation of a solar photovoltaic system at the Epicenter. The advance bears interest at 1.0% and is payable in monthly installments of $17,100 until July 2023 when the monthly payments reduce to $15,000 to accommodate the cessation of electrical utility rebates. The final payment will occur in January 2035. At June 30, 2016, the outstanding balance amounted to$3,215,612. Interfund Transfers Transfers Out: Nonmajor General Municipal Governmental Funds Fund Utility Funds Total Transfers in: General Fund $ - $ 1,255,350 $ - $ 1,255,350 Fire District - - 74,323 74,323 Sport Complex 1,767,464 - - 1,767,464 REGIS Connect 22,000 22,000 Internal Service Funds 723,890 - 7,850 731,740 Nonmajor Funds 479,300 - 514,752 994,052 Total $ 2,992,654 $ 1,255,350 $ 596,925 $ 4,844,929 63 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Interfund Receivable, Payable and Transfers (Continued) The General Fund transferred $1,767,464, $22,000, $723,890, and $479,300 to the Sports Complex Fund, the REGIS Connect fund, the Internal Service Funds and Nonmajor Funds, respectively, to cover the budgeted amounts. The Municipal Utility transferred $1,255,350 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, 2016: Balance Outstanding Due Within July 1, 2015 Additions Repayments June 30, 2016 One Year Capital Leases: Dell Financial Services $ 121,160 $ - $ 59,006 $ 62,154 $ 62,154 Government Capital Corp. 1,193,661 - 385,200 808,461 397,751 Xerox- Internal Service 187,335 - 64,307 123,028 66,266 Xerox-Governmental Funds 61,920 - 21,260 40,660 21,903 Total Capital Leases 1,564,076 - 529,773 1,034,303 548,074 Advances from Successor Agency 3,953,624 - - 3,953,624 - Claims and judgments payable 3,419,806 1,260,434 1,561,394 3,118,846 1,615,452 Accrued employee benefits 7,323,946 5,581,907 4,948,097 7,957,756 5,467,273 Total $ 16,261,452 $ 6,842,341 $ 7,039,264 $ 16,064,529 $ 7,630,799 A description of individual components of long-term debt outstanding as of June 30, 2016, 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, 2016, the outstanding amount due was $62,154. The calculation of the present value of the future lease payments is as follows: Year Ending June 30 2017 $ 65,469 Less:Amount representing interest (3,315) Total $ 62,154 64 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 7: Long-Term Debt Obligations (Continued) 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 10"' of each year with the final payment due July 2017. The interest rate is fixed at 3.22%. At June 30, 2016, the outstanding amount due was $808,461. The calculation of the present value of the future lease payments is as follows: Year Ending June 30 2017 $ 424,092 2018 424,092 Subtotal 848,184 Less: Amount representing interest (39,723) Total $ 808,461 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, 2016, the outstanding amount due was $163,688. The calculation of the present value of the future lease payments is as follows: Year Ending June 30 2017 $ 91,872 2018 76,562 Subtotal 168,434 Less: Amount representing interest (4,746) Total $ 163,688 Advances from the Successor Agency During the formation of Community Facilities District CFD 2000-01 (CFD 2000-01), a number of meetings were held with property owners within the proposed boundaries to discuss participation in CFD 2000-01 and benefits to their property. As a result of those meetings, the approved boundary map was modified at the landowners' request to exclude certain properties from the CFD 2000-01 boundaries. Property owners that were excluded from CFD 2000-01 boundaries, but will be receiving direct benefit from the improvements constructed by CFD 2001-01, were advised that reimbursement would be required when their properties are developed. The Redevelopment Agency advanced the pro-rata share for properties that will receive benefit from the improvements, but are not participating in CFD 2000-01. At June 30, 2016, the outstanding amount of the advance was $3,953,624. 65 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 7: Long-Term Debt Obligations (Continued) Claims and Judgments Payable The City's liability regarding self insurance is described in Note 12. 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. 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. The outstanding amounts at June 30, 2016 were as follows: Outstanding Amount at June 30, 2016 City of Rancho Cucamonga: Assessment District 93-1 $ 1,325,000 Special Tax Refunding Bond, Series 2015: Community Facilities District No.2000-01 455,000 Community Facilities District No.2000-02 4,178,000 Community Facilities District No.2001-01 Series A 7,256,000 Community Facilities District No.2001-01 Series B 702,000 Community Facilities District No.2006-01 3,727,000 Community Facilities District No.2006-02 2,228,000 Community Facilities District No.2000-03 7,060,000 Community Facilities District No.2003-01 Series A 13,665,000 Community Facilities District No.2003-01 Series B 2,663,000 Community Facilities District No.2004-01 32,643,000 Rancho Cucamonga Redevelopment Agency: Multi-Family Housing Revenue Bond: Series 1997A 2,249,538 Total $ 78,151,538 66 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 IV. OTHER INFORMATION Note 9: Pension Plan Obligations a. General Information about the Pension Plans Plan Description— City Miscellaneous Plan- 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. Fire District Miscellaneous and Safety Plans - All qualified permanent and probationary Fire District's employees are eligible to participate in the Safety Employee Pension Plan or Miscellaneous Employee Pension Plan, both cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of PERS' annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. 67 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 9: Pension Plan Obligations (Continued) City Miscellaneous Plan Tier 1 * Tier 2* Tier 3* PEPRA Hire date Prior to September 1, 2010 July 4, 2011 January 1, 2013 September 1, 2010 but prior to and after and after July 3,2011 Benefit formula 2.5%@ 55 2.5% @ 55 2.0%@ 55 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 50 yrs minimum 52 yrs Monthly benefits, as a%of 2.000%-2.500%, 2.000%-2.500%, 1.426%-2.418%, 1.000%-2.500%, eligible compensation 50 yrs-55+yrs, 50 yrs-55+yrs, 50 yrs-63+yrs, 52 yrs-67+yrs, respectively respectively respectively respectively Required employee 8.000% 8.000% 7.000% 6.500% contribution rates Required employer 14.588% 14.588% 14.588% 14.588% contribution rates Fire District Miscellaneous Cost-Sharing Rate Plans Tier 1 * Tier 2* PEPRA Hire date Prior to July 9, 2011 January 1,2013 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 Required employer 9.671% 8.003% 6.237% contribution rates 68 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 9: Pension Plan Obligations (Continued) Fire District Safety Cost-Sharing Rate Plans Tier 1 * Tier 2* PEPRA Hire date Prior to July 9, 2011 January 1,2013 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 3.000%, 50+yrs 2.400%-3.000%, 2.000%-2.700%, eligible compensation 50 yrs-55+yrs, 50 yrs-57+yrs, respectively respectively Required employee 9.000% 9.000% 11.500% contribution rates Required employer 18.524% 15.627% 11.153% contribution rates *Plan is closed to new entrants Employees Covered— City Miscellaneous Plan As of the valuation date of June 30, 2014, the following employees were covered by the benefit terms of the Plan: Description Number of Members Active members 458 Transferred members 173 Terminated members 223 Retired members and beneficiaries 208 Total 1,062 Contribution Description — City Miscellaneous & Fire District Miscellaneous and Safety Plans 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 CaIPERS' 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. For the year ended June 30, 2016, the employer contributions recognized as a reduction to the net position liability for all the Plans was $6,471,346. 69 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 9: Pension Plan Obligations (Continued) b. Net Pension Liability — City Miscellaneous Plan & Fire District Miscellaneous and Safety Cost-Sharing Rate Plans The net pension liability is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2015, using an annual actuarial valuation as of June 30, 2014 rolled forward to June 30, 2015 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, 2015, the total pension liability was determined by rolling forward the June 30, 2014 total pension liability. The June 30, 2014 and the June 30, 2015 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB Statement No. 68 Actuarial Assumptions Discount Rate 7.65% Inflation 2.75% Salary Increases Varies by Entry Age and Service Investment Rate of Return 7.65% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Mortality Rate Table (1) Derived using CalPERS' Membership Data for all Funds Post Retirement Benefit Contract COLA up to 2.75% until Purchasing Increase 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, 2014 valuation were based on the results of an actuarial experience study for the period from 1997 to 2007, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS' website under Forms and Publications. Change of Assumptions GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50 percent used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65 percent used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense. 70 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 9: Pension Plan Obligations (Continued) Discount Rate The discount rate used to measure the total pension liability was 7.65 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 of the plans, the tests revealed the assets would not run out. Therefore, the current 7.65 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.65 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 CaIPERS'website under the GASB 68 section. 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, CaIPERS took into account both short-term and long-term market return expectations as well as the expected pension fund (Public Employees' Retirement 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. The target allocation shown was adopted by CalPERS effective on July 1, 2014. 71 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 9: Pension Plan Obligations (Continued) New Strategic Real Return Real Return Asset Class Allocation Years 1 -10(1) Years 11+(2) Global Equity 51.0% 5.25% 5.71% Global Debt Securities 19.0 0.99 2.43 Inflation Assets 6.0 0.45 3.36 Private Equity 10.0 6.83 6.95 Real Estate 10.0 4.50 5.13 Infrastructure and Forestland 2.0 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 c. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions The following table shows the changes in net pension liability recognized over the measurement period for the City Miscellaneous Plan. Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Assets) (a) (b) (c)=(a)-(b) Balance at:6/30/2014(Valuation Date) $ 177,026,645 $ 146,911,625 $ 30,115,020 Changes Recognized for the Measurement Period: Service Cost 4,342,707 - 4,342,707 Interest on the Total Pension Liability 12,931,479 - 12,931,479 Changes of Benefit Terms - - - Difference between Expected and Actual Experience (3,882,722) - (3,882,722) Changes of Assumptions (3,352,733) - (3,352,733) Contributions from the Employer - 3,433,074 (3,433,074) Contributions from Employees - 2,074,191 (2,074,191) Net Investment Income - 3,320,844 (3,320,844) Benefit Payments including Refunds of Employee Contributions (5,847,197) (5,847,197) - Administrative Expense - (168,509) 168,509 Net Changes During 2014/15 4,191,534 2,812,403 1,379,131 Balance at:6/30/2015(Measurement Date) $ 181,218,179 $ 149,724,028 $ 31,494,151 72 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 9: Pension Plan Obligations (Continued) As of June 30, 2016, the Fire District reported net pension liabilities for its proportionate shares of the net pension liability/(asset) of each rate Plan as follows: Proportionate Share of Net Pension Liability/(Asset) Miscellaneous Tier 1 Rate Plan $ 1,817,432 Miscellaneous Tier 2 Rate Plan 2,603 Miscellaneous PEPRA Rate Plan (126) Safety Tier 1 Rate Plan 22,758,182 Safety Tier 2 Rate Plan 564 Safety PEPRA Rate Plan (8,186) Total Net Pension Liability $ 24,570,469 The Fire District's net pension liability/(asset) for each rate Plan is measured as the proportionate share of the net pension liability/(asset). The net pension liability/(asset) of each of the rate Plans is measured as of June 30, 2015, and the total pension liability/(asset) for each rate Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2014, rolled forward to June 30, 2015, using standard update procedures. The Fire District's proportion of the net pension liability/(asset) 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/(asset)for each rate Plan as of June 30, 2014 and 2015, was as follows: Miscellaneous Cost-Sharing Rate Plans Tier 1 Tier 2 PEPRA Proportion-June 30, 2014 0.05429% 0.00026% 0.00000% Proportion-June 30, 2015 0.06625% 0.00009% 0.00000% Change- Increase(Decrease) 0.01196% -0.00017% 0.00000% Safety Cost-Sharing Rate Plans Tier 1 Tier 2 PEPRA Proportion-June 30, 2014 0.51598% 0.00045% 0.00007% Proportion-June 30, 2015 0.55235% 0.00001% -0.00020% Change- Increase (Decrease) 0.03637% -0.00044% -0.00027% Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability/(asset) of the Plan's as of the measurement date, calculated using the discount rate of 7.65 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 (6.65 percent) or 1 percentage-point higher (8.65 percent) than the current rate: 73 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 9: Pension Plan Obligations (Continued) Discount Rate- 1% Current Discount Discount Rate+1% 6.65% 7.65% 8.65% City Miscelleaneous Plan $ 57,496,296 $ 31,494,151 $ 10,119,088 Fire District Miscellaneous Tier 1 Rate Plan 4,040,214 1,817,432 1,436,786 Fire District Miscellaneous Tier 2 Rate Plan 21,918 2,603 (704) Fire District Miscellaneous PEPRA Rate Plan 1,844 (126) (464) Fire District Safety Tier 1 Rate Plan 37,424,742 22,758,182 10,731,873 Fire District Safety Tier 2 Rate Plan 24,827 564 (19,332) Fire District Safety Tier PEPRA Rate Plan (529) (8,186) (14,464) Total Net Pension Liability: $ 99,009,312 $ 56,064,620 $ 22,252,783 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. 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. For the measurement period ending June 30, 2015 (the measurement date), the City incurred a pension expense of$3,856,069 for all Plans. As of June 30, 2016, the following were the reported deferred outflows of resources and deferred inflows of resources related to all pension plans: Deferred Outflows Deferred Inflows of of Resources Resources Current year contributions that occurred after the measurement date of June 30, 2015 $ 12,571,637 $ - Change of Assumption - (4,424,879) Difference between Expected and Actual Experiences 13,388 (3,354,856) Net Difference between Projected and Actual Earnings on Pension Plan Investments - (2,098,513) Adjustment due to differences in proportions 1,923,575 (255,315) Difference in proportionate share 91,912 (38,572) Total $ 14,600,512 $ (10,172,135) 74 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 9: Pension Plan Obligations (Continued) On May 4, 2016, the City Council and the Fire Board authorized the City and Fire District's participation in the PARS Post-Employment Benefits Trust Program administered by the Public Agency Retirement Services. Funds contributed to this Section 115 irrevocable trust directly reduce the Plans' GASB 68 net pension liability. On June 16, 2016, the City and Fire District made initial contributions to the irrevocable trust in the amount of $1,774,000 and $3,824,000, respectively. These contributions are subsequent to the measurement date of June 30, 2015 and are reported as deferred outflows of resources as of June 30, 2016. Contributions subsequent to the measurement date in the amount of $12,571,637 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. 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 2016 $ (3,500,828) 2017 (3,482,161) 2018 (3,384,355) 2019 2,224,084 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 Tier 1 and Tier 2 55 0.000% 56 0.100 57 0.200 58 0.300 59 0.400 60+ 0.500 The City and the Fire District have the right to amend, modify or terminate the plan at any time. Separate audited financial statements are not prepared. Benefits are increased by a 2% annual cost of living adjustment after retirement. There are no employee contributions for either tier. 75 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 10: PARS Retirement Enhancement Plan (Continued) Benefits Provided PARS provides supplemental retirement benefits to eligible employees of the City. Employees are eligible to receive benefits under the plan if they meet the following requirements: 1) a miscellaneous employee of the City or City Council on or after December 1, 2002, 2) at least 56 years of age, 3) has completed 10 or more years of full- time continuous employment at the City, 4) has terminated employment with the City and has concurrently retired under CalPERS if an active CalPERS member, and 5) has applied for benefits under the plan. Benefits shall be in an amount equal to one-twelfth of the product of the number of full and partial years of full-time continuous employment with the City completed as of the Member's retirement times the Member's final pay, times the PARS benefit factor. The total combined CalPERS age factor and PARS benefit factor at retirement may not exceed three percent. Hire date on or after December 1, 2002 Benefit formula one-twelfth of the product of the number of full and partial years of full-time continuous employment with the City completed as of the Member's retirement times the Member's final pay,times the PARS benefit factor Benefit vesting schedule 10 years service Benefit payments monthly for life Retirement age minimum 56 yrs Monthly benefits, as a %of N/A-not based on % of eligible eligible compensation compensation Required employee contribution rates 0.000% Required employer contribution rates 1.400% *This plan is closed to new entrants Employees Covered As of the valuation date of June 30, 2014, the following employees were covered by the benefit terms of the Plan: Description Number of Members Active members 312 Retired members 92 Total 404 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, 2016, the employer contributions recognized as an increase to the net pension asset was $467,000. 76 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 10: PARS Retirement Enhancement Plan (Continued) Net Pension Asset The net pension asset for the Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2015, using an annual actuarial valuation as of June 30, 2014 rolled forward to June 30, 2015 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2014 and June 30, 2015 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age, Level Percent of Payroll Actuarial Assumptions Discount Rate 6.25% Inflation 3.00% Salary Increases Aggregate - 3.25% Investment Rate of Return 6.25% Net of Pension Plan Investment and Administrative Expenses; rounded to the nearest 0.25% Mortality Rate Table CalPERS 1997-2011 Experience Study Post Retirement Benefit Base - CalPERS 1997-2011 Experience Increase Study 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 CaIPERS'website under Forms and Publications. Discount Rate The discount rate used to measure the total pension liability was 6.25 percent. The discount rate was the result of crossover test results. That test assumed future administrative expenses of 0.3% of plan assets and future contributions based the funding policy used for the June 30, 2014 actuarially determined contributions. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 77 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 10: PARS Retirement Enhancement Plan (Continued) 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. New Strategic Asset Class Allocation Real Return Total Fixed 45.0% 1.55% Cash 5.0 0.45 Global Equities 50.0 5.35 Changes in the Net Pension Asset The following table shows the changes in net pension asset recognized over the measurement period. Increase(Decrease) Total Pension Plan Fiduciary Liability Net Position Net Pension(Asset) (a) (b) (c)=(a)-(b) Balance at:6/30/2014 $ 22,343,000 $ 27,682,000 $ (5,339,000) Changes Recognized for the Measurement Period: Service Cost 743,000 - 743,000 Interest on the Total Pension Liability 1,425,000 - 1,425,000 Changes of Benefit Terms _ _ _ Difference between Expected and Actual Experience _ Changes of Assumptions _ _ _ Contributions from the Employer - 467,000 (467,000) Contributions from Employees _ _ _ Net Investment Income - 660,000 (660,000) Benefit Payments including Refunds of Employee Contributions (546,000) (546,000) - Administrative Expenses - (47,000) 47,000 Net Changes During 2014/15 1,622,000 534,000 1,088,000 Balance at:6/30/2015 $ 23,965,000 $ 28,216,000 $ (4,251,000) 78 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 10: PARS Retirement Enhancement Plan (Continued) Sensitivity of the Net Pension Asset to Changes in the Discount Rate The following presents the net pension asset of the Plan as of the measurement date, calculated using the discount rate of 6.25 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 Rate Discount Rate+1% (5.25%) (6.25%) (7.25%) Plan's Net Pension (Assets) $ (596,000) $ (4,251,000) $ (7,253,000) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2014), the net pension asset was $5,339,000. For the measurement period ending June 30, 2015 (the measurement date), the City incurred a pension expense/(income) of$372,000 for the Plan. As of June 30, 2016, 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, 2015 $ 307,590 $ - Net Difference between Projected and Actual Earnings on Pension Plan Investments - (132,000) Total $ 307,590 $ (132,000) $307,590 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, 2017. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: 79 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 10: PARS Retirement Enhancement Plan (Continued) Deferred Year ended Outflows/(Inflows) of June 30: Resources 2016 $ (116,000) 2017 (116,000) 2018 (115,000) 2019 215,000 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 premium for the participant and their family. For Tier 2 employees, the Fire District contributes a predetermined monthly maximum of $122-125 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 CaIPERS 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 2015-2016, the City paid $754,883 in premiums for retiree insurance and was reimbursed $629,883 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) $ 399,000 Interest in net OPEB asset (1,018,430) Adjustment to ARC 1,473,828 Annual OPEB cost 854,398 Contributions: Contributions made 754,883 Implicit rate subsidy benefit payments 274,000 Reimbursement of contributions made (629,883) Decrease/(Increase) in net OPEB asset 455,398 Net OPEB obligation/(asset)June 30, 2015 (15,668,161) Net OPEB obligation/(asset)June 30, 2016 $ (15,212,763) 80 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 11: Other Post-Employment Benefits (Continued) The contribution rate of 3.9% is based on the ARC of $399,000, 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, 2015 actuarial valuation which positively impact the actuarially determined contribution rate. Annual OPEB Costs and Net OPEB 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 asset is available for the fiscal year ended June 30, 2009, and thereafter. Three Year Trend Information-OPEB Fiscal Annual Percentage of Net OPEB Year OPEB Actual Annual OPEB Reimbursements Obligation End Cost Contribution' Cost Contributed from CERBT (Asset) 6/30/2014 $ 757,135 $ 834,616 110.2% $ 335,316 $ (16,189,075) 6/30/2015 906,914 994,659 109.7% 608,659 (15,668,161) 6/30/2016 854,398 1,028,883 120.4% 629,883 (15,212,763) * 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 6/30/2011 $ 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% 6/30/2015 26,882 23,067 (3,815) 116.5% 10,236 -37.3% Actuarial valuation is performed every other year. 81 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 11: Other Post-Employment Benefits (Continued) 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, 2015, 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 3.25% and annual healthcare cost trend rate of between 5.0% and 6.7%. 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 30-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 The City and the Fire District are exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the 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 $250,000 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. 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. 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. Effective July 1, 2016, the Fire District became a member of the Public Agency Risk Sharing Authority of California-PARSAC for general liability coverage. 82 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 12: Summary Disclosure of Self-Insurance Contingencies (Continued) Liabilities of the City and the Fire District are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. The City 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 City pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority's operating results. Effective July 1, 2015, the Fire District became a member of the Public Agency Risk Sharing Authority of California (Authority) for its workers compensation insurance and concurrently separated from the Public Agency Self-Insurance System (PASIS) of San Bernardino County. The Fire District will maintain reserves to cover its June 30, 2016 estimated claims liability for workers compensation up to its self-insured retention of $250,000. Claims in excess of the self-insured amount will be covered by California State Association of Counties- Excess Insurance Authority. All workers compensation coverage from July 1, 2015 forward will be provided by the Authority. Under the program, the Fire District has a $250,000 retention limit for workers compensation. The Authority covers workers compensation claims in excess of the $250,000 retention limit up to $500,000. The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The Fire District pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority's operating results. Financial statements of the 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. 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. The following is a summary of the changes in the claims liability over the past two fiscal years for the City and the Fire District combined: Current Year Claims Fiscal Year Beginning and Changes in Claim Ending Ended Balance Estimates Payments Balance June 30, 2015 $ 4,179,031 $ 920,145 $ (1,679,370) $ 3,419,806 June 30, 2016 3,419,806 1,260,434 (1,561,394) 3,118,846 83 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 13: Commitments and Contingencies The following schedule summarizes the major contractual commitments by funds as of June 30, 2016: Expenditures Contract to date as of Remaining Fund/Project Name Amount June 30, 2016 Commitments General Fund Solar Photovoltaic System $ 1,900,149 $ 781,230 $ 1,118,919 Park Development Family Sports Center Relocation 1,288,069 467,894 820,175 Measure I Foothill Boulevard Pavement Rehabilitation 612,999 501,236 111,763 Victoria Street Pavement Rehabilitation 384,300 - 384,300 Archibald Avenue Pavement Rehabilitation 874,500 - 874,500 Proposition 84- Park Bond Act Los Amigos Park 3,287,190 808,012 2,479,178 Fire District Fire Protection District All Risk Training Facility 3,537,435 1,728,591 1,808,844 Library Services Paul Biane Library Second Floor Improvements 2,125,200 1,572,326 552,874 Citywide Infrastructure Improvement Foothill Boulevard Pavement Rehabilitation 620,820 501,236 119,584 Spruce Avenue Pavement Rehabilitation 527,117 - 527,117 Pacific Electric Trail Drainage Improvement 589,035 - 589,035 Sports Complex Solar Photovoltaic System 2,607,080 2,346,372 260,708 84 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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 $ 21,291,018 Cash and investments with fiscal agent 1,512,636 $ 22,803,654 85 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016: On July 21, 2003, the Agency entered into a Disposition and Developer Agreement with Victoria Gardens, L.L.C. 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, 2016, the outstanding balance was $11,581,818. c. Capital Assets An analysis of capital assets as of June 30, 2016, follows: Beginning Ending Balance Increases Decreases Balance Capital assets,not being depreciated: Land $ 1,602,929 $ $ - $ 1,602,929 Construction-in-progress 1,100,365 (1,077,709) 22,656 Total Capital Assets, Not Being Depreciated 2,703,294 (1,077,709) 1,625,585 Capital assets,being depreciated: Building improvements 47,820,843 47,820,843 Improvement other than buildings 1,059,893 1,059,893 Equipment and vehicles 9,975,186 (566,977) 9,408,209 Furniture and fixtures 1,393,069 1,393,069 Intangible 51,974 51,974 Total Capital Assets, Being Depreciated 60,300,965 (566,977) 59,733,988 Less accumulated depreciation: Building improvements 9,750,851 1,388,590 11,139,441 Improvement other than buildings 227,746 52,995 280,741 Equipment and vehicles 8,860,624 303,943 (566,977) 8,597,590 Furniture and fixtures 1,377,394 2,798 1,380,192 Intangible 50,350 1,624 51,974 Total Accumulated Depreciation 20,266,965 1,749,950 (566,977) 21,449,938 Total Capital Assets, Being Depreciated,Net 40,034,000 (1,749,950) - 38,284,050 Capital Assets, Net $ 42,737,294 $ (1,749,950) $ (1,077,709) $ 39,909,635 86 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016, follows: Balance Balance Due Within July 1,2015 Additions Defeasance Repayments June 30,2016 One Year Bonds Tax Allocation Refunding Bonds-2007 Issue $ 133,870,000 $ $ $ 3,390,000 $ 130,480,000 $ 3,565,000 Tax Allocation Refunding Bonds-2014 Issue 174,050,000 5,375,000 168,675,000 6,645,000 Total Bonds 307,920,000 8,765,000 299,155,000 10,210,000 Developer Loans Price Club Costco 8,210,399 8,072,900 137,499 - - Bank of New York 9,748,953 - 555,984 9,192,969 605,871 Total Developer Loans 17,959,352 8,072,900 693,483 9,192,969 605,871 Total $ 325,879,352 $ $ 8,072,900 $ 9,458,483 308,347,969 $ 10,815,871 Unamortized Premium 23,919,534 Total $ 332,267,503 Tax Allocation Bonds 1. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project, Housing Set-aside Tax Allocation Bonds, Tax Exempt Series 2007A and Taxable Series 2007B. $155,620,000. In November 2007, the Rancho Cucamonga Redevelopment Agency issued $73,305,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds Tax-Exempt Series 2007A and $82,315,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds Taxable series 2007B to (a) refund and redeem the Agency's outstanding Rancho Redevelopment Project 1996 Housing Set-Aside Tax Allocation Bonds, (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. 87 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) 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, 2016, amounted to $130,480,000 plus unamortized bond premium of $618,719. The following schedule illustrates the debt service requirements to maturity for the 2007 Tax Allocation Refunding Bonds as of June 30, 2016: Year Ending June 30 Principal Interest 2017 $ 3,565,000 $ 7,223,693 2018 3,750,000 7,029,556 2019 3,955,000 6,816,915 2020 4,175,000 6,594,014 2021 4,400,000 6,353,360 2022-2026 26,130,000 27,526,530 2027-2031 40,955,000 17,779,315 2032-2035 43,550,000 4,488,730 Total $ 130,480,000 $ 83,812,113 2. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project Area Tax Allocation Refunding Bonds, Series 2014. $174,050,000. These bonds are dated July 15, 2014, and were issued to refinance certain obligations of the Project Area including the 1999 Tax Allocation Refunding Bonds, 2001 Tax Allocation Bonds and 2004 Tax Allocation Bonds. The Bonds will be payable from and secured by, designated property tax revenues (formerly tax increment revenues) related to the Rancho Redevelopment Project, which will consist of moneys deposited, from time to time, in the Redevelopment Property Tax Trust Fund ("RPTTF") established under the Dissolution Act, defined below, but exclude those amounts which were, prior to the Dissolution Act, required to be deposited into the Former Agency's Low and Moderate Income Housing Fund to the extent required to pay debt service on existing Housing Obligations. Interest is payable semi-annually on March 1 and September 1, of each year commencing March 1, 2015. The bonds mature in annual installments ranging from $2,750,000 to $14,235,000 starting September 1, 2015 to September 1, 2032, and bear interest ranging from 3% to 5%. The balance at June 30, 2016, amounted to $168,675,000 plus unamortized bond premium of$23,300,815 and unamortized gain on defeasance of$2,191,707. 88 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) The following schedule illustrates the debt service requirements to maturity for the 2014 Tax Allocation Refunding Bonds as of June 30, 2016: Year Ending June 30 Principal Interest 2017 $ 6,645,000 $ 8,165,300 2018 6,910,000 7,894,200 2019 7,190,000 7,576,250 2020 7,550,000 7,207,750 2021 7,925,000 6,820,875 2022 -2026 45,980,000 27,590,750 2027-2031 58,685,000 14,569,375 2032 -2035 27,790,000 1,406,500 Total $ 168,675,000 $ 81,231,000 Developer Loans Payable 1. 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. As of June 30, 2016, the note has been forgiven and has no outstanding balance. 89 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) 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 20 and September 20, of each year through March 2026. The balance at June 30, 2016, amounted to $9,192,969. The following schedule illustrates the debt service requirements to maturity for the Bank of New York loan as of June 30, 2016: Year Ending June 30 Principal Interest 2017 $ 605,871 $ 794,129 2018 660,233 739,767 2019 719,475 680,525 2020 784,030 615,970 2021 854,379 545,621 2022-2026 5,568,981 1,431,019 Total $ 9,192,969 $ 4,807,031 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 $478,198,113 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 $30,144,821 and the debt service obligation on the bonds was $25,959,309. In July 1994, the Agency entered into an affordable housing Pledge Agreement with So Cal Housing which they could use to secure affordable housing units. In August 1996, the Agency approved Amendment No. 2 to the 1994 Original Pledge, to commit to pay $339,200 annually to the California Housing Finance Agency (CHFA) to benefit the required reserves for three affordable family housing developments up to November 2026. The balance of the commitment at June 30, 2016 is $3,585,600. 90 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) 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 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, 2016, the Agency made payments totaling $679,992. Note 15: Net Position and Fund Balance Restatement Beginning Net Position has been restated by $2,274,076 for the governmental activities as the result of three restatements. A restatement was made to record a correction of prior revenues related to the Measure I Fund in the amount of $435,434. In addition, a restatement was made to the General Fund and Fire District Fund, in the amount of $2,063,294 and $28,312, respectively, which was a result of the City recognizing compensation in the current year which was received in exchange for the City's membership interest in Principal Life Insurance Company when the Company went through the process of demutualization and converted from a mutual insurance company into a stock company in October 2001. As a result, the City received compensation in the form of 40,780 shares of common stock from the new stock corporation, the Principal Financial Group. Of the total 40,780 shares, 40,228 shares were attributable to the City and 552 shares were attributable to the Fire District based on their respective membership interest. In addition, in the Community Development Block Grant Fund, a restatement of ($252,964) was recorded as the result of correcting a transaction related to a sale of land held for resale that occurred in a previous period. Fund balance has been restated for the same amounts. Note 16: Subsequent Events a. On July 20, 2016, the Successor Agency to the Rancho Cucamonga Redevelopment Agency adopted Resolution No. 16-120 approving the issuance of refunding bonds for the outstanding Rancho Cucamonga Redevelopment Agency Tax Exempt 2007 Housing Bonds, Series A; approving the execution and delivery of a Sixth Supplemental Trust Indenture, and requesting the Oversight Board take necessary actions to approve the proposed bond refunding. The Oversight Board for the Successor Agency to the Rancho Cucamonga Redevelopment Agency adopted Resolution No. OB 16-03 on July 21, 2016, approving the issuance of the refunding bonds. The Tax Allocation Refunding Bonds, Series 2016, in the principal amount of$56,860,000 were issued on October 5, 2016. 91 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 16: Subsequent Events (Continued) b. On August 3, 2016, the City Council authorized an interfund advance from the General Fund's Capital Reserve to the Lighting Districts Special Revenue Fund (comprised of Street Lighting Maintenance District (SLD) Nos. 1, 2, 3, 4, 5, 6, 7, and 8) in an estimated total amount not to exceed $9,660,284 for the purchase and acquisition of 15,299 Southern California Edison (SCE) owned streetlights. The Purchase and Sale Agreement between the City and SCE was approved by the City Council on June 15, 2016. The acquisition of the streetlights will be conducted in eight (8) phases beginning as early as the summer of 2017 dependent on final approval from the CPUC. As such, the advances necessary to fund the purchase for each SLID are not anticipated to occur until the beginning of Fiscal Year 2017/18, when the first phase of the acquisition is expected to commence. c. Effective July 1, 2016, the Fire District became a member of the Public Agency Risk Sharing Authority of California-PARSAC (Authority) for its general liability insurance and concurrently separated from the Fire Agencies Insurance Risk Authority. Under the program, the Fire District has a $250,000 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. d. On May 4, 2016, the City Council approved a ground lease agreement with Goals Soccer Centers, Inc. (Goals) for the lease of approximately 4 acres of land at the Epicenter Sports Complex to develop, operate and maintain a recreation sports park. On September 14, 2016, the City received a prepayment of $345,000. In accordance with the terms of the lease agreement, the City will eligible to recognize revenue for the lease prepayment on April 1, 2017 over a 3 year period. In the event that lease is terminated prior to October 4, 2017, the City must return the remaining portion of the lease prepayment to Goals less $30,000 that is guaranteed to the City. 92 REQUIRED SUPPLEMENTARY INFORMATION 93 THIS PAGE INTENTIONALLY LEFT BLANK 94 CITY OF RANCHO CUCAMONGA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2016 Budgetary Comparison Information a. Budget Data General Budget Policies The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The Council conducts budget study sessions prior to holding a public hearing to adopt the budget. When required during the period, the Council also approves supplemental appropriations. There were several supplemental appropriations required during the year. A comprehensive update to budgeted figures occurs once per year as part of the Amended Budget process which is presented to the Council in May each fiscal year for approval. There were no significant non- budgeted financial activities during the year. The City Council may transfer funds between funds or activities set forth in the budget. The City Manager may transfer funds between line items within an appropriation as set forth in the budget and may transfer appropriations between activities within any fund. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is established at the 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 ended June 30, 2016, 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 Senior Outreach 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 2003-01 Project Fund Public Library Bond Act—2000 These funds had no adopted budget due to the timing of the usage of these special revenue and capital project funds. Money will be budgeted as needed based on specific projects. 95 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) GENERALFUND YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 as restated $108,214,047 $108,214,047 $ 108,214,047 $ Resources(Inflows): Taxes 62,209,270 64,579,190 65,148,696 569,506 Licenses and permits 3,797,010 4,019,060 4,041,565 22,505 Intergovernmental 551,890 541,570 654,768 113,198 Charges for services 3,462,880 3,110,520 3,302,750 192,230 Use of money and property 1,161,800 1,252,170 1,203,940 (48,230) Fines and forfeitures 1,129,910 988,770 1,090,684 101,914 Contributions 70,000 116,100 80,541 (35,559) Miscellaneous 2,751,970 3,152,070 2,527,104 (624,966) Transfers in 1,255,350 1,555,350 1,255,350 (300,000) Proceeds from sale of capital asset 50,070 50,070 25,331 (24,739) Amounts Available for Appropriations 184,654,197 187,578,917 187,544,776 (34,141) Charges to Appropriations(Outflow): General government General overhead 2,167,400 3,071,172 3,076,564 (5,392) Personnel overhead 680,000 2,888,960 2,997,744 (108,784) City council 129,070 124,770 111,290 13,480 City management 1,668,320 1,680,970 1,568,004 112,966 City clerk 1,960 1,950 1,873 77 Administrative services 266,480 265,600 253,826 11,774 Business licenses 307,930 320,820 302,597 18,223 City facilities 1,390,280 1,012,990 921,214 91,776 Finance 1,204,590 1,161,680 1,112,046 49,634 Geographic information systems 347,540 361,200 335,516 25,684 Management information services 2,364,320 2,223,390 2,073,455 149,935 Personnel 541,180 547,390 495,311 52,079 Purchasing 332,500 286,040 221,592 64,448 Risk management 211,590 208,540 155,157 53,383 Treasury management 12,130 11,200 8,638 2,562 Communications 222,700 196,360 181,422 14,938 Records management 482,910 563,960 543,004 20,956 Public safety-police Sheriff contract services 33,776,750 33,822,015 33,364,777 457,238 Public safety-animal center Animal center 3,018,880 3,062,380 2,924,840 137,540 Community development Planning 2,262,310 3,423,910 3,019,201 404,709 Planning commission 20,980 16,190 14,938 1,252 Community improvement 785,220 570,680 483,101 87,579 Administration 763,950 592,590 477,238 115,352 Building and safety 1,973,430 1,674,110 1,626,716 47,394 Community services Administration 4,947,200 4,723,830 4,493,139 230,691 Park and recreation commission 5,790 5,470 4,534 936 Engineering and public works Engineering administration 478,620 554,450 500,628 53,822 Development management 749,610 815,680 685,113 130,567 NPDES 417,250 365,940 351,023 14,917 Project management 429,240 399,760 367,950 31,810 Traffic management 271,030 264,150 235,487 28,663 Park maintenance 3,024,860 2,844,030 2,561,107 282,923 Vehicle and equipment maintenance 1,046,780 935,280 835,271 100,009 Facilities maintenance 3,687,180 3,400,060 3,065,410 334,650 Street maintenance 2,838,170 2,646,660 2,467,850 178,810 Capital outlay 3,612,000 7,358,483 5,756,721 1,601,762 Debt service: Principal retirement 17,120 17,160 9,394 7,766 Interest and fiscal charges - - 693 (693) Transfers out 2,837,660 2,941,940 2,992,654 (50,714) Total Charges to Appropriations 79,294,930 85,361,760 80,597,038 4,764,722 Budgetary Fund Balance,June 30(Budgetary Basis) $105,359,267 $102,217,157 106,947,738 $ 4,730,581 Encumbrances 3,569,202 Budgetary Fund Balance,June 30(GAAP Basis) $ 110,516,940 96 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CITYWIDE INFRASTRUCTURE IMPROVEMENT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 16,774,657 $16,774,657 $16,774,657 $ - Resources (Inflows): Intergovernmental 3,389,190 6,950,000 9,539,195 2,589,195 Use of money and property 91,220 207,910 313,940 106,030 Miscellaneous - - 105,311 105,311 Amounts Available for Appropriations 20,255,067 23,932,567 26,733,103 2,800,536 Charges to Appropriation (Outflow): Engineering and public works 64,330 789,792 763,365 26,427 Capital outlay 2,812,000 3,061,758 1,863,627 1,198,131 Total Charges to Appropriations 2,876,330 3,851,550 2,626,992 1,224,558 Budgetary Fund Balance,June 30(Budgetary Basis) $ 17,378,737 $20,081,017 24,106,111 $ 4,025,094 Encumbrances 1,593,851 Budgetary Fund Balance,June 30 (GAAP Basis) $25,699,962 97 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HOUSING SUCCESSOR AGENCY YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $124,943,671 $ 124,943,671 $ 124,943,671 $ - Resources (Inflows): Use of money and property 44,850 88,490 461,517 373,027 Developer participation - - 4,000,000 4,000,000 Miscellaneous 12,000 12,000 301,851 289,851 Transfers in - - - - Amounts Available for Appropriations 129,173,931 129,217,571 133,880,448 4,662,877 Charges to Appropriation (Outflow): Community development 305,680 291,880 289,167 2,713 Capital outlay 2,010,000 - - - Total Charges to Appropriations 2,315,680 291,880 289,167 2,713 Budgetary Fund Balance,June 30 (Budgetary Basis) $126,858,251 $ 128,925,691 133,591,281 $ 4,665,590 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 133,591,281 98 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) FIRE DISTRICT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 as restated $69,026,386 $69,026,386 $69,026,386 $ - Resources (Inflows): Taxes 35,532,510 36,639,380 36,965,379 325,999 Licenses and permits 24,880 20,880 21,516 636 Charges for services 13,820 12,520 7,464 (5,056) Use of money and property 845,650 786,830 1,074,355 287,525 Fines and forfeitures 43,200 41,700 71,210 29,510 Contributions - 100 100 - Miscellaneous 1,199,950 5,016,680 4,963,391 (53,289) Transfers in - 74,330 74,323 (7) Amounts Available for Appropriations 106,686,396 111,618,806 112,204,124 585,318 Charges to Appropriation (Outflow): Public safety-fire protection 31,223,920 35,030,707 33,409,457 1,621,250 Capital outlay 25,246,150 10,416,523 10,014,670 401,853 Debt service: Principal retirement 659,020 659,650 3,303 656,347 Interest and fiscal charges 145,560 145,560 146,065 (505) Total Charges to Appropriations 57,274,650 46,252,440 43,573,495 2,678,945 Budgetary Fund Balance,June 30 (Budgetary Basis) $49,411,746 $65,366,366 68,630,629 $ 3,264,263 Encumbrances 3,247,332 Budgetary Fund Balance,June 30 (GAAP Basis) $71,877,961 99 CITY OF RANCHO CUCAMONGA MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 TOTAL PENSION LIABILITY Service Cost $ 4,661,973 $ 4,342,707 Interest 12,370,506 12,931,479 Difference between Expected and Actual Experience - (3,882,722) Changes in Assumptions - (3,352,733) Benefit Payments, Including Refunds of Employee Contributions (5,229,846) (5,847,197) Net Change in Total Pension Liability 11,802,633 4,191,534 Total Pension Liability-Beginning 165,224,012 177,026,645 Total Pension Liability-Ending (a) $ 177,026,645 $ 181,218,179 PLAN FIDUCIARY NET POSITION Contributions- Employer $ 3,520,721 $ 3,433,074 Contributions-Employee 2,156,312 2,074,191 Net Investment Income (2) 21,772,350 3,320,843 Benefit Payments, Including Refunds of Employee Contributions (5,229,846) (5,847,197) Administrative Expense - (168,508) Net Change in Fiduciary Net Position 22,219,537 2,812,403 Plan Fiduciary Net Position- Beginning 124,692,088 146,911,625 Plan Fiduciary Net Position- Ending (b) $ 146,911,625 $ 149,724,028 Plan Net Pension Liability/(Assets)- Ending (a)-(b) $ 30,115,020 $ 31,494,151 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 82.99% 82.62% Covered-Employee Payroll $ 25,819,515 $ 25,082,858 Plan Net Pension Liability/(Asset)as a Percentage of Covered- Employee Payroll 116.64% 125.56% (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 two years are 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 the June 30, 2014. 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: The discount rate was changed from 7.5 percent(net of administrative expense)to 7.65 percent. 100 CITY OF RANCHO CUCAMONGA MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 Actuarially Determined Contribution $ 3,433,074 $ 3,745,756 Contribution in Relation to the Actuarially Determined Contribution (3,433,074) (3,745,756) Contribution Deficiency(Excess) $ - $ - Covered-Employee Payroll $ 25,082,858 $ 25,682,090 Contributions as a Percentage of Covered-Employee Payroll 13.69% 14.59% (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 two years are shown. Note to Schedule: Valuation Date: June 30, 2013 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method/period Level percentage of payroll, closed Asset valuation method Actuarial value of assets Inflation 2.75% Salary increases Varies by entry age and service Payroll growth 3.00% Investment rate of return 7.65% net of pension investment and administrative expenses, including inflation. Retirement age The probabilities of retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007 Mortality The probabilities of retirement 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. 101 CITY OF RANCHO CUCAMONGA COST SHARING MULTIPLE-EMPLOYER PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 Proportion of the Net Pension Liability/(Asset) Miscellaneous Tier 1 Rate Plan 0.02156% 0.02648% Miscellaneous Tier 2 Rate Plan 0.00010% 0.00004% Miscellaneous PEPRA Rate Plan 0.00000% 0.00000% Safety Tier 1 Rate Plan 0.31104% 0.33157% Safety Tier 2 Rate Plan 0.00027% 0.00001% Safety PEPRA Rate Plan 0.00004% -0.00012% TOTAL PLAN 0.33301% 0.35798% Proportionate Share of the Net Pension Liability/(Asset) Miscellaneous Tier 1 Rate Plan $ 1,341,679 $ 1,817,432 Miscellaneous Tier 2 Rate Plan 6,509 2,603 Miscellaneous PEPRA Rate Plan 6 (126) Safety Tier 1 Rate Plan 19,354,250 22,758,182 Safety Tier 2 Rate Plan 16,928 564 Safety PEPRA Rate Plan 2,686 (8,186) TOTAL PLAN $ 20,722,058 $ 24,570,469 Covered-Employee Payroll Miscellaneous Tier 1 Rate Plan $ 1,273,454 $ 1,178,268 Miscellaneous Tier 2 Rate Plan 166,993 179,436 Miscellaneous PEPRA Rate Plan 34,210 79,523 Safety Tier 1 Rate Plan 9,849,228 9,871,327 Safety Tier 2 Rate Plan 314,021 404,138 Safety PEPRA Rate Plan 233,711 279,058 TOTAL PLAN $ 11,871,617 $ 11,991,750 Proportionate Share of the Net Pension Liability/(Asset)as Percentage of Covered-Employee Payroll Miscellaneous Tier 1 Rate Plan 105.36% 154.25% Miscellaneous Tier 2 Rate Plan 3.90% 1.45% Miscellaneous PEPRA Rate Plan 0.02% 0.16% Safety Tier 1 Rate Plan 196.51% 230.55% Safety Tier 2 Rate Plan 5.39% 0.14% Safety PEPRA Rate Plan 1.15% 2.93% TOTAL PLAN 174.55% 204.89% The Pension Plan's(PERF-C)Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% 78.40% Notes to Schedule: Benefit Changes:The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30,2014.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:The discount rate was changed from 7.5 percent(net of administrative expense)to 7.65 percent. (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 two years are shown. 102 CITY OF RANCHO CUCAMONGA COST SHARING MULTIPLE-EMPLOYER PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 Actuarially Determined Contributions Miscellaneous Tier 1 Plan $ 185,882 $ 192,057 Miscellaneous Tier 2 Plan 19,736 19,382 Miscellaneous PEPRA 4,812 8,462 Safety Tier 1 Plan 2,711,236 2,864,717 Safety Tier 2 Plan 85,480 89,585 Safety PEPRA 31,126 53,678 Contribution in Relation to the Actuarially Determined Contribution (3,038,272) (3,227,881) Contribution Deficiency(Excess) $ - $ - Covered-Employee Payroll $ 11,991,750 $ 12,897,769 Contributions as a Percentage of Covered-Employee Payroll 25.34% 25.03% (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 two years are shown. Note to Schedule: Valuation Date: June 30,2013 Methods and assumptions used to determine contribution rates: Single and Agent Employers Entry age normal Amortization method Level percent payroll/closed Remaining amortization period Market Value Assets valuation method 2.75% Inflation 3.30%to 14.20% Salary Increases 3.00% Investment rate of return 7.65%net of pension plan investment expense, including The probabilities of retirement are based on the 2010 CalPERS Retirement age Experience Study for the period from 1997 to 2007 The probabilities of retirement 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 Mortality Society of Actuaries. 103 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) 2015 2016 TOTAL PENSION LIABILITY Service Cost $ 719,000 $ 743,000 Interest 1,329,000 1,425,000 Benefit Payments, Including Refunds of Employee Contributions (495,000) (546,000) Net Change in Total Pension Liability 1,553,000 1,622,000 Total Pension Liability-Beginning 20,790,000 22,343,000 Total Pension Liability-Ending(a) $ 22,343,000 $ 23,965,000 PLAN FIDUCIARY NET POSITION Contribution-Employer $ 497,000 $ 467,000 Net Investment Income(2) 3,177,000 660,000 Benefit Payments, Including Refunds of Employee Contributions (495,000) (546,000) Other Changes in Fiduciary Net Position (33,000) (47,000) Net Change in Fiduciary Net Position 3,146,000 534,000 Plan Fiduciary Net Position-Beginning 24,536,000 27,682,000 Plan Fiduciary Net Position-Ending(b) $ 27,682,000 $ 28,216,000 Plan Net Pension Liability/(Assets)-Ending(a)-(b) $ (5,339,000) $ (4,251,000) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 123.90% 117.74% Covered-Employee Payroll $ 24,363,588 $ 22,739,613 Plan Net Pension Liability/(Asset)as a Percentage of Covered- Employee Payroll -21.91% -18.69% (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 two years are 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. 104 CITY OF RANCHO CUCAMONGA PARS RETIREMENT ENHANCEMENT PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 Actuarially Determined Contribution $ 467,000 $ 307,590 Contribution in Relation to the Actuarially Determined Contribution (467,000) (307,590) Contribution Deficiency(Excess) $ - $ Covered-Employee Payroll $ 22,739,613 $ 21,593,214 Contributions as a Percentage of Covered-Employee Payroll(3) 2.05% 1.42% (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 two years are shown. Note to Schedule: Valuation Date: June 30,2014 Methods and assumptions used to determine contribution rates: Actuarial cost method Agrregate Cost Amortization method n/a Amortization period n/a Assets valuation method Actuarial value of assets Inflation 3.00% Salary Increases 4.5%average,including inflation of 3.0% Investment rate of return 6.25%net of pension investment and administrative expenses, including inflation. Retirement age CalPERS 1997-2011 Experience Study Mortality CaIPERS 1997-2011 Experience Study 105 THIS PAGE INTENTIONALLY LEFT BLANK 106 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). 107 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. 108 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. SAFETEA-LU Grant Fund -This fund was established to account for Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) grant funds from the Department of Transportation. The purpose of the SAFETEA-LU is to provide funding for highways, highway safety, and public transportation projects. 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. 109 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) 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 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. Homeland Security Grant Fund — Fire - 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 enhance the Employee Operations Center's ability to prevent, plan, respond, and recover from a terrorism event. 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. 110 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. Emergency Management Performance 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 are utilized to assist in preparing the City for all hazards. Homeland Security Grant Fund — Police - 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. 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. 111 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 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 Protect 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. 112 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. 113 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Special Revenue Funds Park Gas Tax Recreation Development Beautification Assets: Cash and investments $ 7,421,019 $ 3,488,103 $ 13,354,561 $ 1,049,938 Receivables: Accounts - 310,070 - - Taxes - - - - Accrued interest 4,937 2,250 10,121 1,044 Other loans - - - - Grants - 1,500 - - Prepaid costs - 24,936 - - Deposits - 29,312 - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 7,425,956 $ 3,856,171 $ 13,364,682 $ 1,050,982 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 385,002 $ 338,249 $ 62,322 $ - Accrued liabilities 50,013 124,313 3,476 - Unearned revenues - 531,049 - - Deposits payable - 1,852 - - Due to other governments - - - - Due to other funds - - - - Total Liabilities 435,015 995,463 65,798 - Deferred Inflows of Resources: Unavailable revenues - 3,839 - 93,407 Total Deferred Inflows of Resources - 3,839 - 93,407 Fund Balances: Nonspendable: Prepaid costs - 24,936 - - Deposits - 29,312 - - Restricted for: Community development projects - - 13,298,884 - Public safety-police - - - - Parks and recreation - 2,802,621 - - Engineering and public works 6,990,941 - - 957,575 Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - - - Total Fund Balances 6,990,941 2,856,869 13,298,884 957,575 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 7,425,956 $ 3,856,171 $ 13,364,682 $ 1,050,982 114 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Special Revenue Funds Landscape Lighting Maintenance Pedestrian Districts Districts Transportation Grant Assets: Cash and investments $ 5,106,050 $ 15,882,589 $ 21,140,821 $ - Receivables: Accounts 5,332 43,269 360,353 - Taxes 22,259 83,889 - - Accrued interest 3,305 9,003 14,414 - Other loans - - - - Grants - - - 9,543 Prepaid costs - 750 - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 5,136,946 $ 16,019,500 $ 21,515,588 $ 9,543 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 175,488 $ 1,163,359 $ 221,934 $ - Accrued liabilities 4,160 85,187 14,069 - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds 94,679 - - 9,543 Total Liabilities 274,327 1,248,546 236,003 9,543 Deferred Inflows of Resources: Unavailable revenues - - - 9,543 Total Deferred Inflows of Resources - - - 9,543 Fund Balances: Nonspendable: Prepaid costs - 750 - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - - - - Parks and recreation - - - - Engineering and public works - - 21,279,585 - Capital improvement projects - - - - Street lighting 4,862,619 - - - Underground utilities - - - - Landscape maintenance - 14,770,204 - - Library services - - - - Unassigned - - - (9,543) Total Fund Balances 4,862,619 14,770,954 21,279,585 (9,543) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 5,136,946 $ 16,019,500 $ 21,515,588 $ 9,543 115 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Special Revenue Funds Community San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage SB 140 Assets: Cash and investments $ 180,326 $ 627,942 $ 916,801 $ 36,831 Receivables: Accounts - 410 - - Taxes - - - - Accrued interest - 450 755 - Other loans 747,808 - - - Grants 201,603 - - - Prepaid costs - - - - Deposits - - - - Land held for resale 823,247 - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 1,952,984 $ 628,802 $ 917,556 $ 36,831 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 11,267 $ 10,390 $ - $ - Accrued liabilities 12,677 5,613 - - Unearned revenues - - - - Deposits payable - - - - Due to other governments 747,808 - - - Due to other funds - - - - Total Liabilities 771,752 16,003 - - Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects 1,181,232 612,799 - - Public safety-police - - - - Parks and recreation - - - - Engineering and public works - - - 36,831 Capital improvement projects - - 917,556 - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - - - Total Fund Balances 1,181,232 612,799 917,556 36,831 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,952,984 $ 628,802 $ 917,556 $ 36,831 116 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Special Revenue Funds South Lower Masi Air Quality Etiwanda Etiwanda Commerce Improvement Drainage Drainage Center Assets: Cash and investments $ 878,622 $ 642,131 $ 605,006 $ 10,902 Receivables: Accounts - - - - Taxes - - - - Accrued interest 493 460 433 7 Other loans - - - - Grants 190,350 - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - 290,305 Total Assets $ 1,069,465 $ 642,591 $ 605,439 $ 301,214 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 - - - - Total Liabilities - - - - Deferred Inflows of Resources: Unavailable revenues 190,350 - - - Total Deferred Inflows of Resources 190,350 - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects 879,115 - - - Public safety-police - - - - Parks and recreation - - - - Engineering and public works - 642,591 605,439 - Capital improvement projects - - - 301,214 Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - - - Total Fund Balances 879,115 642,591 605,439 301,214 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,069,465 $ 642,591 $ 605,439 $ 301,214 117 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Special Revenue Funds Proposition Library 84- Park Bond Asset Measure I Services Act Forfeiture Assets: Cash and investments $ 5,927,545 $ 6,918,629 $ - $ 154,025 Receivables: Accounts 426,403 13,029 - - Taxes - 32,164 - - Accrued interest 4,357 4,898 - 215 Other loans - - - - Grants - - 980,762 - Prepaid costs - 3,162 - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 6,358,305 $ 6,971,882 $ 980,762 $ 154,240 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 500,368 $ 124,176 $ 361,018 $ - Accrued liabilities 6,162 106,524 - - Unearned revenues - 18,060 - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - 619,745 - Total Liabilities 506,530 248,760 980,763 - Deferred Inflows of Resources: Unavailable revenues - - 980,762 - Total Deferred Inflows of Resources - - 980,762 - Fund Balances: Nonspendable: Prepaid costs - 3,162 - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - - - 154,240 Parks and recreation - - - - Engineering and public works 5,851,775 - - - Capital improvement projects - 1,710,114 - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - 5,009,846 - - Unassigned - - (980,763) - Total Fund Balances 5,851,775 6,723,122 (980,763) 154,240 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 6,358,305 $ 6,971,882 $ 980,762 $ 154,240 118 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Special Revenue Funds Used Oil Recycling COPS Drainage CA State Grant Program Grant Facilities Library Assets: Cash and investments $ 15,660 $ 807,088 $ 4,143,360 $ 93,676 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - 3,009 - Other loans - - - - Grants - - - 30,000 Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 15,660 $ 807,088 $ 4,146,369 $ 123,676 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ 747 Accrued liabilities - - 2,302 - Unearned revenues 15,660 - - 81,428 Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Total Liabilities 15,660 - 2,302 82,175 Deferred Inflows of Resources: Unavailable revenues - - 5,102 - Total Deferred Inflows of Resources - - 5,102 - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - 807,088 - - Parks and recreation - - - - Engineering and public works - - 4,138,965 - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - 41,501 Unassigned - - - - Total Fund Balances - 807,088 4,138,965 41,501 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 15,660 $ 807,088 $ 4,146,369 $ 123,676 119 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Special Revenue Funds Library AB 2928 Energy Services& Traffic Litter Efficient& Technologies Congestion Reduction Conservation Act Relief Grant Block Grant Assets: Cash and investments $ 37,201 $ 295,497 $ 53,983 $ 404 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Other loans - - - 357,020 Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 37,201 $ 295,497 $ 53,983 $ 357,424 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ 1,079 $ - Accrued liabilities - - 152 500 Unearned revenues - - 52,752 - Deposits payable - - - - Due to other governments - - - 357,020 Due to other funds - - - - Total Liabilities - - 53,983 357,520 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - - - - Parks and recreation - - - - Engineering and public works - 295,497 - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services 37,201 - - - Unassigned - - - (96) Total Fund Balances 37,201 295,497 - (96) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 37,201 $ 295,497 $ 53,983 $ 357,424 120 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Special Revenue Funds Senior Safe Routes SAFETEA-LU Outreach Underground to School Grant Grant Utilities Program Assets: Cash and investments $ 4,414 $ - $ 11,796,770 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest 283 - 8,469 - Other loans - - - - Grants 2,123,046 - - 92,839 Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,127,743 $ - $ 11,805,239 $ 92,839 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 2,123,046 $ - $ - $ - Accrued liabilities - - - 1,511 Unearned revenues 4,697 - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - 5,267 - 91,328 Total Liabilities 2,127,743 5,267 - 92,839 Deferred Inflows of Resources: Unavailable revenues - - - 92,839 Total Deferred Inflows of Resources - - - 92,839 Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - 11,805,239 - Landscape maintenance - - - - Library services - - - - Unassigned - (5,267) - (92,839) Total Fund Balances - (5,267) 11,805,239 (92,839) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 2,127,743 $ - $ 11,805,239 $ 92,839 121 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Special Revenue Funds CA State COPS Secure Library Staff COPS Hiring Foothill Blvd. Our Schools Innovation Program Grant Maintenance Grant Fund Grant Assets: Cash and investments $ - $ - $ 12,085 $ 250,161 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - 162 Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ - $ - $ 12,085 $ 250,323 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ 274 Accrued liabilities - - - - Unearned revenues - - 12,042 250,049 Deposits payable - - - - Due to other governments - - - - Due to other funds - 1,433 - - Total Liabilities - 1,433 12,042 250,323 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - - 43 - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - (1,433) - - Total Fund Balances - (1,433) 43 - Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ - $ - $ 12,085 $ 250,323 122 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Special Revenue Funds Homeland Public The Big Read Drink, Drive, Security Grant Resource Library Grant Lose Grant - Fire Grants Assets: Cash and investments $ 21,603 $ 15,405 $ 30,076 $ 37,504 Receivables: Accounts - - - 6,300 Taxes - - - - Accrued interest - - - - Other loans - - - - Grants 3,000 - - - Prepaid costs - - 601 - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 24,603 $ 15,405 $ 30,677 $ 43,804 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 510 $ - $ - $ 8,037 Accrued liabilities - - 301 - Unearned revenues 4,094 15,405 30,376 25,768 Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Total Liabilities 4,604 15,405 30,677 33,805 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - 601 - Deposits - - - - Restricted for: Community development projects - - - 9,999 Public safety-police - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services 19,999 - - - Unassigned - - (601) - Total Fund Balances 19,999 - - 9,999 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 24,603 $ 15,405 $ 30,677 $ 43,804 123 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Special Revenue Funds Henderson/ Integrated Proposition Wardman Waste Federal Grant 1B Drainage Management Fund-Dreier Assets: Cash and investments $ 241,429 $ 986,903 $ 2,883,048 $ 13,588 Receivables: Accounts - - 282,086 - Taxes - - 115,704 - Accrued interest 172 - 1,629 - Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - 15,000 - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 241,601 $ 986,903 $ 3,297,467 $ 13,588 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ 3,110 $ 13,545 Accrued liabilities - - 31,121 - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Total Liabilities - - 34,231 13,545 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - 15,000 - Restricted for: Community development projects - - - - Public safety-police - - - - Parks and recreation - - - 43 Engineering and public works 241,601 986,903 3,248,236 - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - - - Total Fund Balances 241,601 986,903 3,263,236 43 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 241,601 $ 986,903 $ 3,297,467 $ 13,588 124 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Special Revenue Funds Proposition Freedom Emergency 42-Traffic Courtyard Justice Management Congestion Resource Assistance Performance Relief Grants Grant Grant Assets: Cash and investments $ 205,717 $ 2,148 $ 52,789 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest 157 - - - Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 205,874 $ 2,148 $ 52,789 $ - Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - 2 Unearned revenues - 2,148 50,250 - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - 28 Total Liabilities - 2,148 50,250 30 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - - 2,539 (30) Parks and recreation - - - - Engineering and public works 205,874 - - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - - - Total Fund Balances 205,874 - 2,539 (30) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 205,874 $ 2,148 $ 52,789 $ - 125 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Special Revenue Funds Homeland Used Oil Security Grant- Recycling Library Police Impact Police Program Impact Fee Fee Assets: Cash and investments $ - $ 35,370 $ 240,024 $ 112,277 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 13 135 61 Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ - $ 35,383 $ 240,159 $ 112,338 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - 1,703 - - Unearned revenues - 33,680 - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Total Liabilities - 35,383 - - Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - - - 112,338 Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - 240,159 - Unassigned - - - - Total Fund Balances - - 240,159 112,338 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ - $ 35,383 $ 240,159 $ 112,338 126 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Special Revenue Funds Capital Projects Funds Animal Center Park Land Assessment Assessment Impact Fee Acquisition District 82-1 District 84-1 Assets: Cash and investments $ 51,728 $ 84,502 $ 13,132 $ 1,117,992 Receivables: Accounts - - - - Taxes - - - - Accrued interest 29 47 9 802 Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 51,757 $ 84,549 $ 13,141 $ 1,118,794 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 - - - - Total Liabilities - - - - Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police 51,757 - - - Parks and recreation - 84,549 - - Engineering and public works - - - - Capital improvement projects - - 13,141 1,118,794 Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - - - Total Fund Balances 51,757 84,549 13,141 1,118,794 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 51,757 $ 84,549 $ 13,141 $ 1,118,794 127 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Capital Projects Funds CFD 2000-01 Assessment South CFD 2003-01 District 86-2 Etiwanda CFD 2001-01 Project Fund Assets: Cash and investments $ - $ 76 $ 495,412 $ 5,603 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - 354 - Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - 169,349 Total Assets $ - $ 76 $ 495,766 $ 174,952 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 41,128 - - - Total Liabilities 41,128 - - - Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - 76 495,766 174,952 Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned (41,128) - - - Total Fund Balances (41,128) 76 495,766 174,952 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ - $ 76 $ 495,766 $ 174,952 128 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Capital Projects Funds Public Library Etiwanda CFD 2004-01 CFD 2003-01 Bond Act- Equestrian Rancho Cultural 2000 Facility Etiwanda Center Assets: Cash and investments $ 32,781 $ 674,862 $ 5,102 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - 484 4 - Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - 71,857 184,694 Total Assets $ 32,781 $ 675,346 $ 76,963 $ 184,694 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Unearned revenues 26,653 - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - 179,628 Total Liabilities 26,653 - - 179,628 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects 6,128 675,346 76,963 5,066 Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Unassigned - - - - Total Fund Balances 6,128 675,346 76,963 5,066 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 32,781 $ 675,346 $ 76,963 $ 184,694 129 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Capital Projects Funds Total CFD 2006-01 CFD 2006-02 Nonmajor Vintner's Amador on Governmental Grove Route 66 Funds Assets: Cash and investments $ 1,848 $ 6,066 $ 109,291,723 Receivables: Accounts - - 1,447,252 Taxes - - 254,016 Accrued interest - 4 73,196 Other loans - - 1,104,828 Grants - - 3,632,643 Prepaid costs - - 29,449 Deposits - - 44,312 Land held for resale - - 823,247 Restricted assets: Cash and investments with fiscal agents - - 716,205 Total Assets $ 1,848 $ 6,070 $ 117,416,871 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ 5,503,921 Accrued liabilities - - 449,786 Unearned revenues - - 1,154,111 Deposits payable - - 1,852 Due to other governments - - 1,104,828 Due to other funds - - 1,042,779 Total Liabilities - - 9,257,277 Deferred Inflows of Resources: Unavailable revenues - - 1,375,842 Total Deferred Inflows of Resources - - 1,375,842 Fund Balances: Nonspendable: Prepaid costs - - 29,449 Deposits - - 44,312 Restricted for: Community development projects - - 15,982,029 Public safety-police - - 1,127,975 Parks and recreation - - 2,956,807 Engineering and public works - - 45,481,813 Capital improvement projects 1,848 6,070 5,506,269 Street lighting - - 4,862,619 Underground utilities - - 11,805,239 Landscape maintenance - - 14,770,204 Library services - - 5,348,706 Unassigned - - (1,131,670) Total Fund Balances 1,848 6,070 106,783,752 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,848 $ 6,070 $ 117,416,871 130 THIS PAGE INTENTIONALLY LEFT BLANK 131 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Special Revenue Funds Park Gas Tax Recreation Development Beautification Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 3,751,903 - - - Charges for services - 2,851,812 - - Use of money and property 106,892 1,078,653 194,974 20,562 Contributions - 273,081 - - Developer participation - - - 200 Miscellaneous 2,505 194,360 - - Total Revenues 3,861,300 4,397,906 194,974 20,762 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - 156,678 - Community services - 4,290,613 - - Engineering and public works 3,320,985 - - 631,977 Capital outlay 239,930 42,207 599,932 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 3,560,915 4,332,820 756,610 631,977 Excess(Deficiency)of Revenues Over(Under) Expenditures 300,385 65,086 (561,636) (611,215) Other Financing Sources (Uses): Transfers in - - - - Transfers out (455,270) - - - Total Other Financing Sources (Uses) (455,270) - - - Net Change in Fund Balances (154,885) 65,086 (561,636) (611,215) Fund Balances, Beginning of Year 7,145,826 2,791,783 13,860,520 1,568,790 Restatements - - - - Fund Balances, Beginning of Year, as Restated 7,145,826 2,791,783 13,860,520 1,568,790 Fund Balances, End of Year $ 6,990,941 $ 2,856,869 $ 13,298,884 $ 957,575 132 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) Special Revenue Funds Landscape Lighting Maintenance Pedestrian Districts Districts Transportation Grant Revenues: Taxes $ 2,065,615 $ 10,455,192 $ - $ - Licenses and permits - 289,796 - - Intergovernmental - 122,924 - 56,023 Charges for services - 19,505 - - Use of money and property 72,203 275,750 284,240 - Contributions - 50,000 - - Developer participation 1,887 - 3,017,055 - Miscellaneous - 2,993 648,072 - Total Revenues 2,139,705 11,216,160 3,949,367 56,023 Expenditures: Current: General government 2,759,968 - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - 9,257,804 518 22,936 Community services - - - - Engineering and public works - - 915,931 - Capital outlay - 50,705 975,271 37,879 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,759,968 9,308,509 1,891,720 60,815 Excess(Deficiency)of Revenues Over(Under) Expenditures (620,263) 1,907,651 2,057,647 (4,792) Other Financing Sources (Uses): Transfers in 455,270 328,570 - - Transfers out - - (7,850) - Total Other Financing Sources (Uses) 455,270 328,570 (7,850) - Net Change in Fund Balances (164,993) 2,236,221 2,049,797 (4,792) Fund Balances, Beginning of Year 5,027,612 12,534,733 19,229,788 (4,751) Restatements - - - - Fund Balances, Beginning of Year, as Restated 5,027,612 12,534,733 19,229,788 (4,751) Fund Balances, End of Year $ 4,862,619 $ 14,770,954 $ 21,279,585 $ (9,543) 133 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Special Revenue Funds Community San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage SB 140 Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 820,535 - - - Charges for services - - -Use of money and property 705 9,556 15,363 138 Contributions - - - - Developer participation - - 173,628 - Miscellaneous - 985,981 - - Total Revenues 821,240 995,537 188,991 138 Expenditures: Current: General government - 1,055,307 - - Public safety-police - - - - Public safety-fire protection - - - - Community development 593,270 - - - Community services - - - - Engineering and public works - - 229,434 - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 593,270 1,055,307 229,434 - Excess(Deficiency)of Revenues Over(Under) Expenditures 227,970 (59,770) (40,443) 138 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 227,970 (59,770) (40,443) 138 Fund Balances, Beginning of Year 1,206,226 672,569 957,999 36,693 Restatements (252,964) - - - Fund Balances, Beginning of Year, as Restated 953,262 672,569 957,999 36,693 Fund Balances, End of Year $ 1,181,232 $ 612,799 $ 917,556 $ 36,831 134 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) Special Revenue Funds South Lower Masi Air Quality Etiwanda Etiwanda Commerce Improvement Drainage Drainage Center Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 448,461 - - - Charges for services - - - - Use of money and property 11,384 9,826 9,244 148 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 459,845 9,826 9,244 148 Expenditures: Current: General government 26,316 - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - 89 150 - Capital outlay 88,328 - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 114,644 89 150 - Excess(Deficiency)of Revenues Over(Under) Expenditures 345,201 9,737 9,094 148 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 345,201 9,737 9,094 148 Fund Balances, Beginning of Year 533,914 632,854 596,345 301,066 Restatements - - - - Fund Balances, Beginning of Year, as Restated 533,914 632,854 596,345 301,066 Fund Balances, End of Year $ 879,115 $ 642,591 $ 605,439 $ 301,214 135 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Special Revenue Funds Proposition Library 84- Park Bond Asset Measure I Services Act Forfeiture Revenues: Taxes $ - $ 3,838,660 $ - $ - Licenses and permits - - - - Intergovernmental 2,813,919 9,367 218,994 30,050 Charges for services - 419,822 - - Use of money and property 85,906 104,225 - 3,935 Contributions - 130,000 - - Developer participation - - - - Miscellaneous 6,797 33,881 - - Total Revenues 2,906,622 4,535,955 218,994 33,985 Expenditures: Current: General government - - - - Public safety-police - - - 4,382 Public safety-fire protection - - - - Community development - - 107,455 - Community services - 3,759,800 - - Engineering and public works 3,374,262 - - - Capital outlay 443,072 1,788,600 924,215 286,917 Debt service: Principal retirement - 8,563 - - Interest and fiscal charges - 631 - - Total Expenditures 3,817,334 5,557,594 1,031,670 291,299 Excess(Deficiency)of Revenues Over(Under) Expenditures (910,712) (1,021,639) (812,676) (257,314) Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (910,712) (1,021,639) (812,676) (257,314) Fund Balances, Beginning of Year 6,327,053 7,744,761 (168,087) 411,554 Restatements 435,434 - - - Fund Balances, Beginning of Year, as Restated 6,762,487 7,744,761 (168,087) 411,554 Fund Balances, End of Year $ 5,851,775 $ 6,723,122 $ (980,763) $ 154,240 136 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) Special Revenue Funds Used Oil Recycling COPS Drainage CA State Grant Program Grant Facilities Library Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 1 359,273 - 7,017 Charges for services - - - - Use of money and property 53 3,122 63,994 351 Contributions - - - - Developer participation - - 453,804 - Miscellaneous - - - - Total Revenues 54 362,395 517,798 7,368 Expenditures: Current: General government - - - - Public safety-police - 98,689 - - Public safety-fire protection - - - - Community development - - - - Community services - - - 7,375 Engineering and public works 54 - 424,085 - Capital outlay - 36,435 77,878 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 54 135,124 501,963 7,375 Excess(Deficiency)of Revenues Over(Under) Expenditures - 227,271 15,835 (7) Other Financing Sources (Uses): Transfers in - - - - Transfers out - (59,482) - - Total Other Financing Sources (Uses) - (59,482) - - Net Change in Fund Balances - 167,789 15,835 (7) Fund Balances, Beginning of Year - 639,299 4,123,130 41,508 Restatements - - - - Fund Balances, Beginning of Year, as Restated - 639,299 4,123,130 41,508 Fund Balances, End of Year $ - $ 807,088 $ 4,138,965 $ 41,501 137 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 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 - - 53,182 - Charges for services - - -Use of money and property 138 1,139 201 - Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 138 1,139 53,383 - Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - 80 53,389 - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 80 53,389 - Excess(Deficiency)of Revenues Over(Under) Expenditures 138 1,059 (6) - Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 138 1,059 (6) - Fund Balances, Beginning of Year 37,063 294,438 6 (96) Restatements - - - - Fund Balances, Beginning of Year, as Restated 37,063 294,438 6 (96) Fund Balances, End of Year $ 37,201 $ 295,497 $ - $ (96) 138 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) Special Revenue Funds Senior Safe Routes SAFETEA-LU Outreach Underground to School Grant Grant Utilities Program Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 3,626,616 - - 198,648 Charges for services - - - - Use of money and property 4,697 - 166,036 - Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 3,631,313 - 166,036 198,648 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 3,631,313 - 14,740 57,701 Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 3,631,313 - 14,740 57,701 Excess(Deficiency)of Revenues Over(Under) Expenditures - - 151,296 140,947 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - - 151,296 140,947 Fund Balances, Beginning of Year - (5,267) 11,653,943 (233,786) Restatements - - - - Fund Balances, Beginning of Year, as Restated - (5,267) 11,653,943 (233,786) Fund Balances, End of Year $ - $ (5,267) $ 11,805,239 $ (92,839) 139 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Special Revenue Funds CA State COPS Secure Library Staff COPS Hiring Foothill Blvd. Our Schools Innovation Program Grant Maintenance Grant Fund Grant Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 12,500 - - 6,688 Charges for services - - - - Use of money and property - - 43 3,527 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 12,500 - 43 10,215 Expenditures: Current: General government - - - - Public safety-police 163,230 - - - Public safety-fire protection - - - - Community development - - - - Community services - - - 34,050 Engineering and public works - 20 - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 163,230 20 - 34,050 Excess(Deficiency)of Revenues Over(Under) Expenditures (150,730) (20) 43 (23,835) Other Financing Sources (Uses): Transfers in 150,730 - - - Transfers out - - - - Total Other Financing Sources (Uses) 150,730 - - - Net Change in Fund Balances - (20) 43 (23,835) Fund Balances, Beginning of Year - (1,413) - 23,835 Restatements - - - - Fund Balances, Beginning of Year, as Restated - (1,413) - 23,835 Fund Balances, End of Year $ - $ (1,433) $ 43 $ - 140 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) Special Revenue Funds Homeland Public The Big Read Drink, Drive, Security Grant- Resource Library Grant Lose Grant Fire Grants Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 16,041 - 82,255 72,560 Charges for services - - - - Use of money and property 75 54 101 141 Contributions - - - 10,000 Developer participation - - - - Miscellaneous - - - 218 Total Revenues 16,116 54 82,356 82,919 Expenditures: Current: General government - - - 72,799 Public safety-police - 1,831 - - Public safety-fire protection - - 14,287 - Community development - - - - Community services 6,118 - - - Engineering and public works - - - - Capital outlay - - 15,527 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 6,118 1,831 29,814 72,799 Excess(Deficiency)of Revenues Over(Under) Expenditures 9,998 (1,777) 52,542 10,120 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - (74,323) - Total Other Financing Sources (Uses) - - (74,323) - Net Change in Fund Balances 9,998 (1,777) (21,781) 10,120 Fund Balances, Beginning of Year 10,001 1,777 21,781 (121) Restatements - - - - Fund Balances, Beginning of Year, as Restated 10,001 1,777 21,781 (121) Fund Balances, End of Year $ 19,999 $ - $ - $ 9,999 141 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Special Revenue Funds Henderson/ Integrated Proposition Wardman Waste Federal Grant 1B Drainage Management Fund -Dreier Revenues: Taxes $ - $ - $ 1,230,143 $ - Licenses and permits - - 850 - Intergovernmental - - - - Charges for services - - - - Use of money and property 3,663 3,812 37,299 43 Contributions - - - - Developer participation - - - - Miscellaneous - - 766,817 - Total Revenues 3,663 3,812 2,035,109 43 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development 70 - - - Community services - - - - Engineering and public works - 270 1,162,869 - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 70 270 1,162,869 - Excess(Deficiency)of Revenues Over(Under) Expenditures 3,593 3,542 872,240 43 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 3,593 3,542 872,240 43 Fund Balances, Beginning of Year 238,008 983,361 2,390,996 - Restatements - - - - Fund Balances, Beginning of Year, as Restated 238,008 983,361 2,390,996 - Fund Balances, End of Year $ 241,601 $ 986,903 $ 3,263,236 $ 43 142 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) Special Revenue Funds Proposition Freedom Emergency 42-Traffic Courtyard Justice Management Congestion Resource Assistance Performance Relief Grants Grant Grant Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - - 33,442 Charges for services - - - - Use of money and property 3,202 - 204 (30) Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 3,202 - 204 33,412 Expenditures: Current: General government - - - - Public safety-police - - 40 - Public safety-fire protection - - - 33,442 Community development - - - - Community services - 85 - - Engineering and public works 109,190 - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 109,190 85 40 33,442 Excess(Deficiency)of Revenues Over(Under) Expenditures (105,988) (85) 164 (30) Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (105,988) (85) 164 (30) Fund Balances, Beginning of Year 311,862 85 2,375 - Restatements - - - - Fund Balances, Beginning of Year, as Restated 311,862 85 2,375 - Fund Balances, End of Year $ 205,874 $ - $ 2,539 $ (30) 143 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Special Revenue Funds Homeland Used Oil Security Grant- Recycling Library Impact Police Impact Police Program Fee Fee Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 33,314 52,673 - - Charges for services - - 130,105 63,034 Use of money and property - 339 3,132 1,426 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 33,314 53,012 133,237 64,460 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - 52,803 - - Community services - - - - Engineering and public works - - - - Capital outlay 33,314 - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 33,314 52,803 - - Excess(Deficiency)of Revenues Over(Under) Expenditures - 209 133,237 64,460 Other Financing Sources (Uses): Transfers in 59,482 - - - Transfers out - - - - Total Other Financing Sources (Uses) 59,482 - - - Net Change in Fund Balances 59,482 209 133,237 64,460 Fund Balances, Beginning of Year (59,482) (209) 106,922 47,878 Restatements - - - - Fund Balances, Beginning of Year, as Restated (59,482) (209) 106,922 47,878 Fund Balances, End of Year $ - $ - $ 240,159 $ 112,338 144 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) Special Revenue Funds Capital Projects Funds Animal Center Park Land Assessment Assessment Impact Fee Acquisition District 82-1 District 84-1 Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - - - Charges for services 28,065 - - - Use of money and property 663 1,100 186 17,101 Contributions - - - - Developer participation - 80,228 - - Miscellaneous - - - - Total Revenues 28,728 81,328 186 17,101 Expenditures: Current: General government - - - 3,490 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 - - - 3,490 Excess(Deficiency)of Revenues Over(Under) Expenditures 28,728 81,328 186 13,611 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 28,728 81,328 186 13,611 Fund Balances, Beginning of Year 23,029 3,221 12,955 1,105,183 Restatements - - - - Fund Balances, Beginning of Year, as Restated 23,029 3,221 12,955 1,105,183 Fund Balances, End of Year $ 51,757 $ 84,549 $ 13,141 $ 1,118,794 145 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Capital Projects Funds CFD 2000-01 Assessment South CFD 2003-01 District 86-2 Etiwanda CFD 2001-01 Project Fund Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Use of money and property - - 7,551 39 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues - - 7,551 39 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - 130 - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - 130 - Excess(Deficiency)of Revenues Over(Under) Expenditures - - 7,421 39 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - - 7,421 39 Fund Balances, Beginning of Year (41,128) 76 488,345 174,913 Restatements - - - - Fund Balances, Beginning of Year, as Restated (41,128) 76 488,345 174,913 Fund Balances, End of Year $ (41,128) $ 76 $ 495,766 $ 174,952 146 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) Capital Projects Funds Public Library Etiwanda CFD 2004-01 CFD 2003-01 Bond Act- Equestrian Rancho Cultural 2000 Facility Etiwanda Center Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Use of money and property 117 10,319 78 18 Contributions - - - - Developer participation - - - - Miscellaneous 6,029 - - - Total Revenues 6,146 10,319 78 18 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - 190 - - Community services 20 - - - Engineering and public works - - 16,000 - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 20 190 16,000 - Excess(Deficiency)of Revenues Over(Under) Expenditures 6,126 10,129 (15,922) 18 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 6,126 10,129 (15,922) 18 Fund Balances, Beginning of Year 2 665,217 92,885 5,048 Restatements - - - - Fund Balances, Beginning of Year, as Restated 2 665,217 92,885 5,048 Fund Balances, End of Year $ 6,128 $ 675,346 $ 76,963 $ 5,066 147 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Capital Projects Funds Total CFD 2006-01 CFD 2006-02 Nonmajor Vintner's Amador on Governmental Grove Route 66 Funds Revenues: Taxes $ - $ - $ 17,589,610 Licenses and permits - - 290,646 Intergovernmental - - 13,806,469 Charges for services - - 3,512,343 Use of money and property 6 80 2,621,827 Contributions - - 463,081 Developer participation - - 3,795,528 Miscellaneous - - 2,647,653 Total Revenues 6 80 44,727,157 Expenditures: Current: General government - - 3,917,880 Public safety-police - - 268,172 Public safety-fire protection - - 47,729 Community development - - 10,191,854 Community services - - 8,098,061 Engineering and public works - - 14,922,622 Capital outlay - - 5,640,210 Debt service: Principal retirement - - 8,563 Interest and fiscal charges 606,871 1,964 609,466 Total Expenditures 606,871 1,964 43,704,557 Excess(Deficiency)of Revenues Over(Under) Expenditures (606,865) (1,884) 1,022,600 Other Financing Sources (Uses): Transfers in - - 994,052 Transfers out - - (596,925) Total Other Financing Sources (Uses) - - 397,127 Net Change in Fund Balances (606,865) (1,884) 1,419,727 Fund Balances, Beginning of Year 608,713 7,954 105,181,555 Restatements - - 182,470 Fund Balances, Beginning of Year, as Restated 608,713 7,954 105,364,025 Fund Balances, End of Year $ 1,848 $ 6,070 $ 106,783,752 148 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) GAS TAX YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $7,145,826 $ 7,145,826 $7,145,826 $ - Resources (Inflows): Intergovernmental 3,848,860 3,857,770 3,751,903 (105,867) Use of money and property 75,580 78,790 106,892 28,102 Miscellaneous - - 2,505 2,505 Amounts Available for Appropriations 11,070,266 11,082,386 11,007,126 (75,260) Charges to Appropriation (Outflow): Engineering and public works 2,690,660 3,771,549 3,320,985 450,564 Capital outlay 2,608,000 822,931 298,003 524,928 Transfers out 455,270 455,270 455,270 - Total Charges to Appropriations 5,753,930 5,049,750 4,074,258 975,492 Budgetary Fund Balance,June 30(Budgetary Basis) $5,316,336 $ 6,032,636 6,932,868 $ 900,232 Encumbrances 58,073 Budgetary Fund Balance,June 30 (GAAP Basis) $6,990,941 149 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) RECREATION YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $2,791,783 $ 2,791,783 $2,791,783 $ - Resources (Inflows): Charges for services 2,908,590 2,979,750 2,851,812 (127,938) Use of money and property 1,050,320 1,062,910 1,078,653 15,743 Contributions 273,010 297,700 273,081 (24,619) Miscellaneous 218,180 180,820 194,360 13,540 Transfers in - 400,000 - (400,000) Amounts Available for Appropriations 7,241,883 7,712,963 7,189,689 (523,274) Charges to Appropriation (Outflow): Community services 4,561,420 4,423,152 4,295,744 127,408 Capital outlay 45,000 42,218 42,207 11 Transfers out - 400,000 - 400,000 Total Charges to Appropriations 4,606,420 4,865,370 4,337,951 527,419 Budgetary Fund Balance,June 30(Budgetary Basis) $2,635,463 $ 2,847,593 2,851,738 $ 4,145 Encumbrances 5,131 Budgetary Fund Balance,June 30 (GAAP Basis) $2,856,869 150 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PARK DEVELOPMENT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $13,860,520 $ 13,860,520 $13,860,520 $ - Resources (Inflows): Use of money and property 141,860 164,100 194,974 30,874 Developer participation 820,000 - - - Amounts Available for Appropriations 14,822,380 14,024,620 14,055,494 30,874 Charges to Appropriation (Outflow): Community development 128,250 166,690 156,678 10,012 Capital outlay 1,410,000 1,434,040 1,427,735 6,305 Transfers out - 300,000 - 300,000 Total Charges to Appropriations 1,538,250 1,900,730 1,584,413 316,317 Budgetary Fund Balance,June 30 (Budgetary Basis) $13,284,130 $ 12,123,890 12,471,081 $ 347,191 Encumbrances 827,803 Budgetary Fund Balance,June 30 (GAAP Basis) $13,298,884 151 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) BEAUTIFICATION YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $1,568,790 $ 1,568,790 $ 1,568,790 $ - Resources (Inflows): Use of money and property 12,070 19,160 20,562 1,402 Developer participation - - 200 200 Amounts Available for Appropriations 1,580,860 1,587,950 1,589,552 1,602 Charges to Appropriation (Outflow): Engineering and public works 710 631,979 631,977 2 Capital outlay 724,470 18,731 - 18,731 Total Charges to Appropriations 725,180 650,710 631,977 18,733 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 855,680 $ 937,240 957,575 $ 20,335 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 957,575 152 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIGHTING DISTRICTS YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $5,027,612 $ 5,027,612 $5,027,612 $ - Resources (Inflows): Taxes 2,099,220 2,075,290 2,065,615 (9,675) Use of money and property 57,750 54,460 72,203 17,743 Developer participation 2,920 2,000 1,887 (113) Transfers in 455,270 455,270 455,270 - Amounts Available for Appropriations 7,642,772 7,614,632 7,622,587 7,955 Charges to Appropriation (Outflow): General government 2,675,780 2,763,350 2,760,638 2,712 Total Charges to Appropriations 2,675,780 2,763,350 2,760,638 2,712 Budgetary Fund Balance,June 30 (Budgetary Basis) $4,966,992 $ 4,851,282 4,861,949 $ 10,667 Encumbrances 670 Budgetary Fund Balance,June 30 (GAAP Basis) $4,862,619 153 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LANDSCAPE MAINTENANCE DISTRICTS YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $12,534,733 $12,534,733 $12,534,733 $ - Resources (Inflows): Taxes 10,421,570 10,315,430 10,455,192 139,762 Licenses and permits 240,000 240,000 289,796 49,796 Intergovernmental - 59,350 122,924 63,574 Charges for services 14,800 20,810 19,505 (1,305) Use of money and property 183,460 188,450 275,750 87,300 Contributions 50,000 50,000 50,000 - Miscellaneous 2,540 3,940 2,993 (947) Transfers in 328,570 328,570 328,570 - Amounts Available for Appropriations 23,775,673 23,741,283 24,079,463 338,180 Charges to Appropriation (Outflow): Community development 11,026,830 10,705,140 9,561,004 1,144,136 Capital outlay 1,297,000 234,430 216,667 17,763 Total Charges to Appropriations 12,323,830 10,939,570 9,777,671 1,161,899 Budgetary Fund Balance,June 30 (Budgetary Basis) $11,451,843 $12,801,713 14,301,792 $ 1,500,079 Encumbrances 469,162 Budgetary Fund Balance,June 30 (GAAP Basis) $14,770,954 154 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) TRANSPORTATION YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $19,229,788 $19,229,788 $19,229,788 $ - Resources (Inflows): Use of money and property 266,740 225,040 284,240 59,200 Developer participation 3,000,000 3,000,000 3,017,055 17,055 Miscellaneous - - 648,072 648,072 Amounts Available for Appropriations 22,496,528 22,454,828 23,179,155 724,327 Charges to Appropriation (Outflow): Community development 600 520 518 2 Engineering and public works 914,110 987,272 915,931 71,341 Capital outlay 2,827,500 4,457,328 1,995,296 2,462,032 Transfers out 7,850 7,850 7,850 - Total Charges to Appropriations 3,750,060 5,452,970 2,919,595 2,533,375 Budgetary Fund Balance,June 30 (Budgetary Basis) $18,746,468 $17,001,858 20,259,560 $ 3,257,702 Encumbrances 1,020,025 Budgetary Fund Balance,June 30 (GAAP Basis) $21,279,585 155 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PEDESTRIAN GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (4,751) $ (4,751) $ (4,751) $ - Resources (Inflows): Intergovernmental - 71,800 56,023 (15,777) Amounts Available for Appropriations (4,751) 67,049 51,272 (15,777) Charges to Appropriation (Outflow): Community development 20 22,937 22,936 1 Capital outlay - 44,113 44,108 5 Total Charges to Appropriations 20 67,050 67,044 6 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (4,771) $ (1) (15,772) $ (15,771) Encumbrances 6,229 Budgetary Fund Balance,June 30 (GAAP Basis) $ (9,543) 156 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 953,262 $ 953,262 $ 953,262 $ - Resources (Inflows): Intergovernmental 1,069,350 915,690 820,535 (95,155) Use of money and property - - 705 705 Amounts Available for Appropriations 2,372,612 1,868,952 1,774,502 (94,450) Charges to Appropriation (Outflow): Community development 1,778,360 912,690 593,270 319,420 Total Charges to Appropriations 1,778,360 912,690 593,270 319,420 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 594,252 $ 956,262 1,181,232 $ 224,970 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 1,181,232 157 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT ADMINISTRATION YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 672,569 $ 672,569 $ 672,569 $ - Resources (Inflows): Use of money and property 7,740 6,920 9,556 2,636 Miscellaneous 1,049,170 964,780 985,981 21,201 Amounts Available for Appropriations 1,729,479 1,644,269 1,668,106 23,837 Charges to Appropriation (Outflow): General government 1,110,460 1,113,400 1,055,307 58,093 Total Charges to Appropriations 1,110,460 1,113,400 1,055,307 58,093 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 619,019 $ 530,869 612,799 $ 81,930 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 612,799 158 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAN SEVAINE/ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 957,999 $ 957,999 $ 957,999 $ - Resources (Inflows): Use of money and property 16,400 13,250 15,363 2,113 Developer participation 50,000 200,000 173,628 (26,372) Amounts Available for Appropriations 1,024,399 1,171,249 1,146,990 (24,259) Charges to Appropriation (Outflow): Engineering and public works 430 229,434 229,434 - Capital outlay - 6 - 6 Total Charges to Appropriations 430 229,440 229,434 6 Budgetary Fund Balance,June 30 (Budgetary Basis) $1,023,969 $ 941,809 917,556 $ (24,253) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 917,556 159 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 533,914 $ 533,914 $ 533,914 $ - Resources (Inflows): Intergovernmental 212,200 212,200 448,461 236,261 Use of money and property 4,920 6,860 11,384 4,524 Amounts Available for Appropriations 751,034 752,974 993,759 240,785 Charges to Appropriation (Outflow): General government 23,300 26,800 27,666 (866) Capital outlay 132,810 120,380 100,328 20,052 Total Charges to Appropriations 156,110 147,180 127,994 19,186 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 594,924 $ 605,794 865,765 $ 259,971 Encumbrances 13,350 Budgetary Fund Balance,June 30 (GAAP Basis) $ 879,115 160 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SOUTH ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 632,854 $ 632,854 $ 632,854 $ - Resources (Inflows): Use of money and property 4,840 7,400 9,826 2,426 Amounts Available for Appropriations 637,694 640,254 642,680 2,426 Charges to Appropriation (Outflow): Engineering and public works 90 90 89 1 Total Charges to Appropriations 90 90 89 1 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 637,604 $ 640,164 642,591 $ 2,427 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 642,591 161 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LOWER ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 596,345 $ 596,345 $ 596,345 $ - Resources (Inflows): Use of money and property 6,930 6,970 9,244 2,274 Amounts Available for Appropriations 603,275 603,315 605,589 2,274 Charges to Appropriation (Outflow): Engineering and public works 150 150 150 - Total Charges to Appropriations 150 150 150 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ 603,125 $ 603,165 605,439 $ 2,274 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 605,439 162 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) MASI COMMERCE CENTER YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 301,066 $ 301,066 $ 301,066 $ - Resources (Inflows): Use of money and property 120 130 148 18 Amounts Available for Appropriations 301,186 301,196 301,214 18 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 301,186 $ 301,196 301,214 $ 18 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 301,214 163 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) MEASUREI YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 as restated $6,762,487 $ 6,762,487 $6,762,487 $ - Resources (Inflows): Intergovernmental 2,570,450 2,682,010 2,813,919 131,909 Use of money and property 59,460 73,390 85,906 12,516 Miscellaneous - - 6,797 6,797 Amounts Available for Appropriations 9,392,397 9,517,887 9,669,109 151,222 Charges to Appropriation (Outflow): Engineering and public works 1,368,620 3,480,679 3,421,411 59,268 Capital outlay 3,941,500 2,443,551 2,275,108 168,443 Total Charges to Appropriations 5,310,120 5,924,230 5,696,519 227,711 Budgetary Fund Balance,June 30 (Budgetary Basis) $4,082,277 $ 3,593,657 3,972,590 $ 378,933 Encumbrances 1,879,185 Budgetary Fund Balance,June 30 (GAAP Basis) $5,851,775 164 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIBRARY SERVICES YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $7,744,761 $ 7,744,761 $7,744,761 $ - Resources (Inflows): Taxes 3,881,210 3,966,400 3,838,660 (127,740) Intergovernmental 20,000 24,950 9,367 (15,583) Charges for services 387,800 377,600 419,822 42,222 Use of money and property 73,870 76,270 104,225 27,955 Contributions 140,000 150,000 130,000 (20,000) Miscellaneous 420 27,850 33,881 6,031 Amounts Available for Appropriations 12,248,061 12,367,831 12,280,716 (87,115) Charges to Appropriation (Outflow): Community services 4,482,740 4,287,610 3,764,270 523,340 Capital outlay 2,505,000 2,605,430 2,417,989 187,441 Debt service: Principal retirement 10,710 9,130 10,224 (1,094) Interest and fiscal charges - - 631 (631) Total Charges to Appropriations 6,998,450 6,902,170 6,193,114 709,056 Budgetary Fund Balance,June 30 (Budgetary Basis) $5,249,611 $ 5,465,661 6,087,602 $ 621,941 Encumbrances 635,520 Budgetary Fund Balance,June 30 (GAAP Basis) $6,723,122 165 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 84-PARK BOND ACT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (168,087) $ (168,087) $ (168,087) $ - Resources (Inflows): Intergovernmental 3,544,360 3,910,790 218,994 (3,691,796) Amounts Available for Appropriations 3,376,273 3,742,703 50,907 (3,691,796) Charges to Appropriation (Outflow): Community development 5,000 277,770 272,737 5,033 Capital outlay 3,539,360 3,461,690 3,461,687 3 Total Charges to Appropriations 3,544,360 3,739,460 3,734,424 5,036 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (168,087) $ 3,243 (3,683,517) $ (3,686,760) Encumbrances 2,702,754 Budgetary Fund Balance,June 30 (GAAP Basis) $ (980,763) 166 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSET FORFEITURE YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 411,554 $ 411,554 $ 411,554 $ - Resources (Inflows): Intergovernmental - - 30,050 30,050 Use of money and property 1,890 4,080 3,935 (145) Amounts Available for Appropriations 413,444 415,634 445,539 29,905 Charges to Appropriation (Outflow): Public safety- Police 560 4,379 4,382 (3) Capital outlay 308,000 331,951 300,697 31,254 Total Charges to Appropriations 308,560 336,330 305,079 31,251 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 104,884 $ 79,304 140,460 $ 61,156 Encumbrances 13,780 Budgetary Fund Balance,June 30 (GAAP Basis) $ 154,240 167 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COPS PROGRAM GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 639,299 $ 639,299 $ 639,299 $ - Resources (Inflows): Intergovernmental 200,000 319,430 359,273 39,843 Use of money and property - - 3,122 3,122 Amounts Available for Appropriations 839,299 958,729 1,001,694 42,965 Charges to Appropriation (Outflow): Public safety-Police 242,060 242,060 103,289 138,771 Capital outlay - 286,440 280,600 5,840 Transfers out - 59,490 59,482 8 Total Charges to Appropriations 242,060 587,990 443,371 144,619 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 597,239 $ 370,739 558,323 $ 187,584 Encumbrances 248,765 Budgetary Fund Balance,June 30 (GAAP Basis) $ 807,088 168 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) DRAINAGE FACILITIES YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $4,123,130 $ 4,123,130 $4,123,130 $ - Resources (Inflows): Use of money and property 50,890 48,600 63,994 15,394 Developer participation 500,000 620,000 453,804 (166,196) Amounts Available for Appropriations 4,674,020 4,791,730 4,640,928 (150,802) Charges to Appropriation (Outflow): Engineering and public works 98,930 454,046 424,335 29,711 Capital outlay 185,000 263,384 85,000 178,384 Total Charges to Appropriations 283,930 717,430 509,335 208,095 Budgetary Fund Balance,June 30 (Budgetary Basis) $4,390,090 $ 4,074,300 4,131,593 $ 57,293 Encumbrances 7,372 Budgetary Fund Balance,June 30 (GAAP Basis) $4,138,965 169 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CA STATE LIBRARY YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 41,508 $ 41,508 $ 41,508 $ - Resources (Inflows): Intergovernmental 25,000 30,000 7,017 (22,983) Use of money and property - - 351 351 Amounts Available for Appropriations 66,508 71,508 48,876 (22,632) Charges to Appropriation (Outflow): Community services 25,860 23,640 7,375 16,265 Total Charges to Appropriations 25,860 23,640 7,375 16,265 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 40,648 $ 47,868 41,501 $ (6,367) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 41,501 170 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) AB 2928 TRAFFIC CONGESTION RELIEF YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 294,438 $ 294,438 $ 294,438 $ - Resources (Inflows): Use of money and property - - 1,139 1,139 Amounts Available for Appropriations 294,438 294,438 295,577 1,139 Charges to Appropriation (Outflow): Public works 80 80 80 - Total Charges to Appropriations 80 80 80 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ 294,358 $ 294,358 295,497 $ 1,139 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 295,497 171 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LITTER REDUCTION GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6 $ 6 $ 6 $ - Resources (Inflows): Intergovernmental 44,700 68,110 53,182 (14,928) Use of money and property - - 201 201 Amounts Available for Appropriations 44,706 68,116 53,389 (14,727) Charges to Appropriation (Outflow): Engineering and public works 44,660 68,110 60,038 8,072 Total Charges to Appropriations 44,660 68,110 60,038 8,072 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 46 $ 6 (6,649) $ (6,655) Encumbrances 6,649 Budgetary Fund Balance,June 30 (GAAP Basis) $ - 172 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAFETEA-LU GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental 3,951,810 3,951,810 3,626,616 (325,194) Use of money and property - 5,010 4,697 (313) Amounts Available for Appropriations 3,951,810 3,956,820 3,631,313 (325,507) Charges to Appropriation (Outflow): Public works - 3,631,313 3,631,313 - Capital outlay 3,951,810 (2,120,503) - (2,120,503) Total Charges to Appropriations 3,951,810 1,510,810 3,631,313 (2,120,503) Budgetary Fund Balance,June 30 (Budgetary Basis) $ - $ 2,446,010 - $ (2,446,010) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ - 173 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) UNDERGROUND UTILITIES YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $11,653,943 $ 11,653,943 $11,653,943 $ - Resources (Inflows): Charges for services 50,000 - - - Use of money and property 131,410 136,090 166,036 29,946 Amounts Available for Appropriations 11,835,353 11,790,033 11,819,979 29,946 Charges to Appropriation (Outflow): Engineering and public works 14,740 14,740 14,740 - Capital outlay 654,570 550,000 - 550,000 Total Charges to Appropriations 669,310 564,740 14,740 550,000 Budgetary Fund Balance,June 30 (Budgetary Basis) $11,166,043 $ 11,225,293 11,805,239 $ 579,946 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $11,805,239 174 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAFE ROUTES TO SCHOOL PROGRAM YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (233,786) $ (233,786) $ (233,786) $ - Resources (Inflows): Intergovernmental 148,560 148,560 198,648 50,088 Amounts Available for Appropriations (85,226) (85,226) (35,138) 50,088 Charges to Appropriation (Outflow): Engineering and public works 132,660 79,600 57,701 21,899 Total Charges to Appropriations 132,660 79,600 57,701 21,899 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (217,886) $ (164,826) (92,839) $ 71,987 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ (92,839) 175 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COPS HIRING PROGRAM GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental 12,500 12,500 12,500 - Transfers in 150,730 150,730 150,730 - Amounts Available for Appropriations 163,230 163,230 163,230 - Charges to Appropriation (Outflow): Public safety 163,910 163,230 163,230 - Total Charges to Appropriations 163,910 163,230 163,230 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ (680) $ - - $ - Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ - 176 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) FOOTHILL BLVD. MAINTENANCE YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (1,413) $ (1,413) $ (1,413) $ - Charges to Appropriation (Outflow): Engineering and public works 20 20 20 - Total Charges to Appropriations 20 20 20 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ (1,433) $ (1,433) (1,433) $ - Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ (1,433) 177 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CA STATE LIBRARY STAFF INNOVATION FUND GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 23,835 $ 23,835 $ 23,835 $ - Resources (Inflows): Intergovernmental 60,370 84,590 6,688 (77,902) Use of money and property 2,820 2,440 3,527 1,087 Amounts Available for Appropriations 87,025 110,865 34,050 (76,815) Charges to Appropriation (Outflow): Parks and recreation 62,470 50,450 34,050 16,400 Total Charges to Appropriations 62,470 50,450 34,050 16,400 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 24,555 $ 60,415 - $ (60,415) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ - 178 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) THE BIG READ LIBRARY GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 10,001 $ 10,001 $ 10,001 $ - Resources (Inflows): Intergovernmental 20,000 15,000 16,041 1,041 Use of money and property - - 75 75 Amounts Available for Appropriations 30,001 25,001 26,117 1,116 Charges to Appropriation (Outflow): Parks and recreation 40,670 35,670 6,118 29,552 Total Charges to Appropriations 40,670 35,670 6,118 29,552 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (10,669) $ (10,669) 19,999 $ 30,668 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 19,999 179 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HOMELAND SECURITY GRANT-FIRE YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 21,781 $ 21,781 $ 21,781 $ - Resources (Inflows): Intergovernmental 35,000 113,390 82,255 (31,135) Use of money and property - - 101 101 Amounts Available for Appropriations 56,781 135,171 104,137 (31,034) Charges to Appropriation (Outflow): Public safety-fire protection 35,570 13,420 14,287 (867) Capital outlay - 15,530 15,527 3 Transfers out - 74,330 74,323 7 Total Charges to Appropriations 35,570 103,280 104,137 (857) Budgetary Fund Balance,June 30 (Budgetary Basis) $ 21,211 $ 31,891 - $ (31,891) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ - 180 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PUBLIC RESOURCE GRANTS YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (121) $ (121) $ (121) $ - Resources (Inflows): Intergovernmental 63,170 95,000 72,560 (22,440) Use of money and property - - 141 141 Contributions 332,110 24,450 10,000 (14,450) Miscellaneous - 220 218 (2) Amounts Available for Appropriations 395,159 119,549 82,798 (36,751) Charges to Appropriation (Outflow): General government 24,280 119,550 110,021 9,529 Total Charges to Appropriations 24,280 119,550 110,021 9,529 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 370,879 $ (1) (27,223) $ (27,222) Encumbrances 37,222 Budgetary Fund Balance,June 30 (GAAP Basis) $ 9,999 181 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 113 YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 238,008 $ 238,008 $ 238,008 $ - Resources (Inflows): Use of money and property 2,790 2,780 3,663 883 Amounts Available for Appropriations 240,798 240,788 241,671 883 Charges to Appropriation (Outflow): Community development 70 70 70 - Total Charges to Appropriations 70 70 70 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ 240,728 $ 240,718 241,601 $ 883 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 241,601 182 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) INTEGRATED WASTE MANAGEMENT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $2,390,996 $ 2,390,996 $2,390,996 $ - Resources (Inflows): Taxes 1,261,000 1,224,660 1,230,143 5,483 Licenses and permits 1,500 1,000 850 (150) Use of money and property 22,280 23,910 37,299 13,389 Miscellaneous 24,000 770,350 766,817 (3,533) Amounts Available for Appropriations 3,699,776 4,410,916 4,426,105 15,189 Charges to Appropriation (Outflow): Engineering and public works 1,318,450 1,306,370 1,165,213 141,157 Capital outlay - 361,350 355,348 6,002 Total Charges to Appropriations 1,318,450 1,667,720 1,520,561 147,159 Budgetary Fund Balance,June 30(Budgetary Basis) $2,381,326 $ 2,743,196 2,905,544 $ 162,348 Encumbrances 357,692 Budgetary Fund Balance,June 30 (GAAP Basis) $3,263,236 183 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 42-TRAFFIC CONGESTION MITIGATION YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 311,862 $ 311,862 $ 311,862 $ - Resources (Inflows): Use of money and property 3,730 2,630 3,202 572 Amounts Available for Appropriations 315,592 314,492 315,064 572 Charges to Appropriation (Outflow): Engineering and public works 190 109,190 109,190 - Total Charges to Appropriations 190 109,190 109,190 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ 315,402 $ 205,302 205,874 $ 572 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 205,874 184 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) FREEDOM COURTYARD RESOURCE GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 85 $ 85 $ 85 $ - Resources (Inflows): Use of money and property 20 30 - (30) Amounts Available for Appropriations 105 115 85 (30) Charges to Appropriation (Outflow): Community services - - 85 (85) Total Charges to Appropriations - - 85 (85) Budgetary Fund Balance,June 30 (Budgetary Basis) $ 105 $ 115 - $ (115) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ - 185 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 2,375 $ 2,375 $ 2,375 $ - Resources (Inflows): Intergovernmental 23,460 25,530 - (25,530) Use of money and property - - 204 204 Amounts Available for Appropriations 25,835 27,905 2,579 (25,326) Charges to Appropriation (Outflow): Public safety 40 40 40 - Capital outlay - 25,490 25,487 3 Total Charges to Appropriations 40 25,530 25,527 3 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 25,795 $ 2,375 (22,948) $ (25,323) Encumbrances 25,487 Budgetary Fund Balance,June 30 (GAAP Basis) $ 2,539 186 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) EMERGENCY MANAGEMENT PERFORMANCE GRANT YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental - 33,450 33,442 (8) Use of money and property - - (30) (30) Amounts Available for Appropriation - 33,450 33,412 (38) Charges to Appropriation (Outflow): Public safety - 33,450 33,442 8 Total Charges to Appropriations - 33,450 33,442 8 Budgetary Fund Balance,June 30 (Budgetary Basis) $ - $ - (30) $ (30) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ (30) 187 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HOMELAND SECURITY GRANT-POLICE YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (59,482) $ (59,482) $ (59,482) $ - Resources (Inflows): Intergovernmental 20 33,320 33,314 (6) Transfers in - 59,490 59,482 (8) Amounts Available for Appropriations (59,462) 33,328 33,314 (14) Charges to Appropriation (Outflow): Capital outlay - 33,320 33,314 6 Total Charges to Appropriations - 33,320 33,314 6 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (59,462) $ 8 - $ (8) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ - 188 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) USED OIL RECYCLING PROGRAM YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (209) $ (209) $ (209) $ - Resources (Inflows): Intergovernmental 47,840 57,810 52,673 (5,137) Use of money and property - 250 339 89 Amounts Available for Appropriations 47,631 57,851 52,803 (5,048) Charges to Appropriation (Outflow): Community development 47,810 57,810 52,803 5,007 Total Charges to Appropriations 47,810 57,810 52,803 5,007 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (179) $ 41 - $ (41) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ - 189 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT DISTRICT 82-1 YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 12,955 $ 12,955 $ 12,955 $ - Resources (Inflows): Use of money and property 150 150 186 36 Amounts Available for Appropriations 13,105 13,105 13,141 36 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 13,105 $ 13,105 13,141 $ 36 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 13,141 190 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT DISTRICT 84-1 YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $1,105,183 $ 1,105,183 $ 1,105,183 $ - Resources (Inflows): Use of money and property 12,960 12,920 17,101 4,181 Amounts Available for Appropriations 1,118,143 1,118,103 1,122,284 4,181 Charges to Appropriation (Outflow): General government 3,490 3,490 3,490 - Total Charges to Appropriations 3,490 3,490 3,490 - Budgetary Fund Balance,June 30 (Budgetary Basis) $1,114,653 $ 1,114,613 1,118,794 $ 4,181 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 1,118,794 191 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) C F D 2001-01 YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 488,345 $ 488,345 $ 488,345 $ - Resources (Inflows): Use of money and property 5,720 5,710 7,551 1,841 Amounts Available for Appropriations 494,065 494,055 495,896 1,841 Charges to Appropriation (Outflow): Community development 130 130 130 - Total Charges to Appropriations 130 130 130 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ 493,935 $ 493,925 495,766 $ 1,841 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 495,766 192 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE ETIWANDA EQUESTRIAN FACILITY YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 665,217 $ 665,217 $ 665,217 $ - Resources (Inflows): Use of money and property 7,740 7,780 10,319 2,539 Amounts Available for Appropriations 672,957 672,997 675,536 2,539 Charges to Appropriation (Outflow): Community development 190 190 190 - Total Charges to Appropriations 190 190 190 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ 672,767 $ 672,807 675,346 $ 2,539 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 675,346 193 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2004-01 RANCHO ETIWANDA YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 92,885 $ 92,885 $ 92,885 $ - Resources (Inflows): Use of money and property 60 60 78 18 Amounts Available for Appropriations 92,945 92,945 92,963 18 Charges to Appropriation (Outflow): Public works - - 16,000 (16,000) Total Charges to Appropriations - - 16,000 (16,000) Budgetary Fund Balance,June 30 (Budgetary Basis) $ 92,945 $ 92,945 76,963 $ (15,982) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 76,963 194 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2003-01 CULTURAL CENTER YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 5,048 $ 5,048 $ 5,048 $ - Resources (Inflows): Use of money and property - - 18 18 Amounts Available for Appropriations 5,048 5,048 5,066 18 Charges to Appropriation (Outflow): Capital outlay 5,000 5,050 - 5,050 Total Charges to Appropriations 5,000 5,050 - 5,050 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 48 $ (2) 5,066 $ 5,068 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 5,066 195 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2006-01 VINTNER'S GROVE YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 608,713 $ 608,713 $ 608,713 $ - Resources (Inflows): Use of money and property 20 20 6 (14) Amounts Available for Appropriations 608,733 608,733 608,719 (14) Charges to Appropriation (Outflow): Capital outlay 100,000 100,000 - 100,000 Debt service: Interest and fiscal charges - - 606,871 (606,871) Total Charges to Appropriations 100,000 100,000 606,871 (506,871) Budgetary Fund Balance,June 30 (Budgetary Basis) $ 508,733 $ 508,733 1,848 $ (506,885) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 1,848 196 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2006-02 AMADOR ON ROUTE 66 YEAR ENDED JUNE 30,2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 7,954 $ 7,954 $ 7,954 $ - Resources (Inflows): Use of money and property 70 70 80 10 Amounts Available for Appropriations 8,024 8,024 8,034 10 Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges - 1,970 1,964 6 Total Charges to Appropriations - 1,970 1,964 6 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 8,024 $ 6,054 6,070 $ 16 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 6,070 197 THIS PAGE INTENTIONALLY LEFT BLANK 198 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. 199 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2016 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Assets: Current: Cash and investments $ 6,970,356 $ 3,016,871 $ 9,987,227 Receivables: Accrued interest 5,296 2,162 7,458 Total Current Assets 6,975,652 3,019,033 9,994,685 Noncurrent: Capital assets- net of accumulated depreciation 2,146,939 1,551,603 3,698,542 Total Noncurrent Assets 2,146,939 1,551,603 3,698,542 Total Assets $ 9,122,591 $ 4,570,636 $ 13,693,227 Liabilities and Net Position: Liabilities: Current: Accounts payable $ 410,422 $ 93,244 $ 503,666 Capital leases 66,266 459,905 526,171 Total Current Liabilities 476,688 553,149 1,029,837 Noncurrent: Capital leases 56,762 410,710 467,472 Total Noncurrent Liabilities 56,762 410,710 467,472 Total Liabilities 533,450 963,859 1,497,309 Net Position: Net investment in capital assets 2,023,911 680,988 2,704,899 Unrestricted 6,565,230 2,925,789 9,491,019 Total Net Position 8,589,141 3,606,777 12,195,918 Total Liabilities and Net Position $ 9,122,591 $ 4,570,636 $ 13,693,227 200 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2016 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Operating Revenues: Sales and service charges $ - $ 291,130 $ 291,130 Total Operating Revenues - 291,130 291,130 Operating Expenses: Maintenance and operations 153,042 863,808 1,016,850 Depreciation expense 782,587 520,245 1,302,832 Total Operating Expenses 935,629 1,384,053 2,319,682 Operating Income (Loss) (935,629) (1,092,923) (2,028,552) Nonoperating Revenues (Expenses): Interest revenue 100,221 69,393 169,614 Interest expense (4,741) (45,357) (50,098) Total Nonoperating Revenues (Expenses) 95,480 24,036 119,516 Income(Loss)Before Transfers (840,149) (1,068,887) (1,909,036) Transfers in 251,730 480,010 731,740 Changes in Net Position (588,419) (588,877) (1,177,296) Net Position: Beginning of Year 9,177,560 4,195,654 13,373,214 End of Fiscal Year $ 8,589,141 $ 3,606,777 $ 12,195,918 201 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2016 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Cash Flows from Operating Activities: Cash received from customers and users $ - $ 294,649 $ 294,649 Cash paid to suppliers for goods and services 183,861 (840,038) (656,177) Net Cash Provided (Used) by Operating Activities 183,861 (545,389) (361,528) Cash Flows from Non-Capital Financing Activities: Cash transfers in 251,730 480,010 731,740 Net Cash Provided(Used) by Non-Capital Financing Activities 251,730 480,010 731,740 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (1,338,744) (33,685) (1,372,429) Principal paid on capital debt (64,307) (444,206) (508,513) Interest paid on capital debt (4,741) (45,357) (50,098) Net Cash Provided(Used) by Capital and Related Financing Activities (1,407,792) (523,248) (1,931,040) Cash Flows from Investing Activities: Interest received 108,086 68,388 176,474 Net Cash Provided (Used) by Investing Activities 108,086 68,388 176,474 Net Increase(Decrease) in Cash and Cash Equivalents (864,115) (520,239) (1,384,354) Cash and Cash Equivalents at Beginning of Year 7,834,471 3,537,110 11,371,581 Cash and Cash Equivalents at End of Year $ 6,970,356 $ 3,016,871 $ 9,987,227 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income(loss) $ (935,629) $ (1,092,923) $ (2,028,552) Adjustments to reconcile operating income(loss) net cash provided (used) by operating activities: Depreciation 782,587 520,245 1,302,832 (Increase)decrease in accounts receivable - 3,519 3,519 Increase(decrease)in accounts payable 336,903 23,770 360,673 Total Adjustments 1,119,490 547,534 1,667,024 Net Cash Provided (Used) by Operating Activities $ 183,861 $ (545,389) $ (361,528) Non-Cash Investing, Capital, and Financing Activities: There was no non-cash investing, capital and financing activities in the current fiscal year. 202 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. CommunitV 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. 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. CommunitV 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. During the fiscal year ended June 30, 2016, the obligations associated with Community Facilities District 2000-01 South Etiwanda were refunded by Special Tax Refunding Bond, Series 2015. 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. During the fiscal year ended June 30, 2016, the obligations associated with Community Facilities District 2000-02 Rancho Cucamonga Corporate Park were refunded by Special Tax Refunding Bond, Series 2015. 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. Community Facilities District No. 2001-01 Special Tax Bonds, Series 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. During the fiscal year ended June 30, 2016, the obligations associated with Community Facilities District No. 2001-01 Special Tax Bonds, Series 2001-A were refunded by Special Tax Refunding Bond, Series 2015. 203 CITY OF RANCHO CUCAMONGA Agency Funds (Continued) Community Facilities District No. 2001-01 Special Tax Bonds, Series 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. During the fiscal year ended June 30, 2016, the obligations associated with Community Facilities District No. 2001-01 Special Tax Bonds, Series 2001-B were refunded by Special Tax Refunding Bond, Series 2015. 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. During the fiscal year ended June 30, 2016, the obligations associated with Community Facilities District 2006-01 Redemption were refunded by Special Tax Refunding Bond, Series 2015. 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. During the fiscal year ended June 30, 2016, the obligations associated with Community Facilities District 2006-02 Redemption were refunded by Special Tax Refunding Bond, Series 2015. 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. 204 CITY OF RANCHO CUCAMONGA Agency Funds (Continued) Special Tax Refunding Bonds 2015- Established to account for assessments received for the Community Facilities District No. 2000-01, Community Facilities District No. 2000-02, Community Facilities District No. 2001-01 Special Tax Bonds, Series A, Community Facilities District No. 2001-01 Special Tax Bonds, Series, Community Facilities District No. 2006-01, and Community Facilities District No. 2006-02. This fund accounts for the payment of principal, interest and penalties thereon, upon presentation of proper coupons. 205 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2016 Special Assessment Assessment Assessment Deposits District 82-1 District 84-2 District 85-PD Assets: Cash and investments $ 7,885,992 $ 47 $ 46 $ 1,246,683 Receivables: Accounts 108,757 - - 2,518 Taxes - - - 15,117 Accrued interest - - - 665 Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 7,994,749 $ 47 $ 46 $ 1,264,983 Liabilities: Accounts payable $ 5,734 $ - $ - $ 37,406 Accrued liabilities - - - 16,426 Deposits payable 7,987,065 - - - Payable to trustee 1,950 47 46 1,211,151 Due to external parties/other agencies - - - - Total Liabilities $ 7,994,749 $ 47 $ 46 $ 1,264,983 206 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2016 (CONTINUED) CFD 2000-01 Assessment Assessment South CFD 88-2 District 91-2 District 99-1 Etiwanda Assets: Cash and investments $ 4,445,473 $ 68,235 $ 301,023 $ - Receivables: Accounts - - 7,746 - Taxes - 231 - - Accrued interest 2,042 45 215 - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 4,447,515 $ 68,511 $ 308,984 $ - Liabilities: Accounts payable $ 1,120 $ - $ - $ - Accrued liabilities - 1,840 - - Deposits payable - - - - Payable to trustee 4,446,395 66,671 308,984 - Due to external parties/other agencies - - - - Total Liabilities $ 4,447,515 $ 68,511 $ 308,984 $ - 207 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2016 CFD 2000-02 Rancho AD 93-1 Masi Cucamonga Commerce CFD 2001-01 CFD 2001-01 Corporate Park Center Series A Series B Assets: Cash and investments $ - $ 504,718 $ - $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - 287 - - Restricted assets: Cash and investments with fiscal agents - 242,500 - - Total Assets $ - $ 747,505 $ - $ - Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Payable to trustee - 747,505 - - Due to external parties/other agencies - - - - Total Liabilities $ - $ 747,505 $ 208 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2016 (CONTINUED) CFD 2000-03 CFD 2000-03 Rancho Rancho CFD 2003-01 CFD 2003-01 Summit Summit Series A Series B Redemption Reserve Assets: Cash and investments $ 694,452 $ 207,757 $ 403,664 $ - Receivables: Accounts - - - - Taxes 127 - 2,273 - Accrued interest 240 101 148 - Restricted assets: Cash and investments with fiscal agents 1,417,060 132,479 3 262,111 Total Assets $ 2,111,879 $ 340,337 $ 406,088 $ 262,111 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Payable to trustee 2,111,879 340,337 406,088 262,111 Due to external parties/other agencies - - - - Total Liabilities $ 2,111,879 $ 340,337 $ 406,088 $ 262,111 209 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2016 CFD 2000-03 Park CFD 2004-01 Maintenance CFD 2006-01 CFD 2006-02 Assets: Cash and investments $ 1,946,255 $ 497,049 $ - $ - Receivables: Accounts - - - - Taxes 34,647 1,755 - - Accrued interest 814 287 - - Restricted assets: Cash and investments with fiscal agents 1,189,450 - - - Total Assets $ 3,171,166 $ 499,091 $ - $ - Liabilities: Accounts payable $ - $ 18,515 $ - $ - Accrued liabilities - 6,168 - - Deposits payable - - - - Payable to trustee 3,171,166 474,408 - - Due to external parties/other agencies - - - - Total Liabilities $ 3,171,166 $ 499,091 $ 210 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2016 Employee Special Tax Deduction Assessment Refunding Account District 82-2 Bonds 2015 Total Assets: Cash and investments $ 95,438 $ 5 $ 1,490,704 $ 19,787,541 Receivables: Accounts - - 100,000 219,021 Taxes - - 6,825 60,975 Accrued interest - - 426 5,270 Restricted assets: Cash and investments with fiscal agents - - 803,740 4,047,343 Total Assets $ 95,438 $ 5 $ 2,401,695 $ 24,120,150 Liabilities: Accounts payable $ - $ - $ - $ 62,775 Accrued liabilities - - - 24,434 Deposits payable - - - 7,987,065 Payable to trustee - 5 2,401,695 15,950,438 Due to external parties/other agencies 95,438 - - 95,438 Total Liabilities $ 95,438 $ 5 $ 2,401,695 $ 24,120,150 211 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2016 Balance Balance 7/1/2015 Additions Deductions 6/30/2016 Special Deposits Assets: Cash and investments $ 8,488,072 $ 1,598,051 $ 2,200,131 $ 7,885,992 Receivables: Accounts 77,576 114,262 83,081 108,757 Taxes 42,190 - 42,190 - Total Assets $ 8,607,838 $ 1,712,313 $ 2,325,402 $ 7,994,749 Liabilities: Accounts payable $ 22,401 $ 857,061 $ 873,728 $ 5,734 Deposits payable 8,333,593 1,755,342 2,101,870 7,987,065 Payable to trustee 1,844 106 - 1,950 Due to external parties/other agencies 250,000 - 250,000 - Total Liabilities $ 8,607,838 $ 2,612,509 $ 3,225,598 $ 7,994,749 Assessment District 82-1 Assets: Cash and investments $ 47 $ - $ - $ 47 Total Assets $ 47 $ - $ - $ 47 Liabilities: Payable to trustee $ 47 $ - $ - $ 47 Total Liabilities $ 47 $ - $ - $ 47 Assessment District 84-2 Assets: Cash and investments $ 46 $ - $ - $ 46 Total Assets $ 46 $ - $ - $ 46 Liabilities: Payable to trustee $ 46 $ - $ - $ 46 Total Liabilities $ 46 $ - $ - $ 46 Assessment District 85-PD Assets: Cash and investments $ 1,057,166 $ 1,350,712 $ 1,161,195 $ 1,246,683 Receivables: Accounts 2,731 2,146 2,359 2,518 Taxes 11,173 15,117 11,173 15,117 Accrued interest 457 661 453 665 Total Assets $ 1,071,527 $ 1,368,636 $ 1,175,180 $ 1,264,983 Liabilities: Accounts payable $ 37,931 $ 434,178 $ 434,703 $ 37,406 Accrued liabilities 14,744 16,426 14,744 16,426 Payable to trustee 1,018,852 1,385,163 1,192,864 1,211,151 Total Liabilities $ 1,071,527 $ 1,835,767 $ 1,642,311 $ 1,264,983 212 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2016 (CONTINUED) Balance Balance 7/1/2015 Additions Deductions 6/30/2016 CFD 88-2 Assets: Cash and investments $ 4,397,015 $ 3,241,459 $ 3,193,001 $ 4,445,473 Receivables: Taxes 914 - 914 - Accrued interest 1,179 2,042 1,179 2,042 Total Assets $ 4,399,108 $ 3,243,501 $ 3,195,094 $ 4,447,515 Liabilities: Accounts payable $ 1,160 $ 1,120 $ 1,160 $ 1,120 Payable to trustee 4,397,948 52,338 3,891 4,446,395 Total Liabilities $ 4,399,108 $ 53,458 $ 5,051 $ 4,447,515 Assessment District 91-2 Assets: Cash and investments $ 89,735 $ 34,787 $ 56,287 $ 68,235 Receivables: Taxes 231 231 231 231 Accrued interest 37 45 37 45 Total Assets $ 90,003 $ 35,063 $ 56,555 $ 68,511 Liabilities: Accrued liabilities $ 1,417 $ 1,840 $ 1,417 $ 1,840 Payable to trustee 88,586 36,434 58,349 66,671 Total Liabilities $ 90,003 $ 38,274 $ 59,766 $ 68,511 Assessment District 99-1 Assets: Cash and investments $ 296,525 $ 4,735 $ 237 $ 301,023 Receivables: Accounts 7,746 - - 7,746 Accrued interest 124 215 124 215 Total Assets $ 304,395 $ 4,950 $ 361 $ 308,984 Liabilities: Payable to trustee $ 304,395 $ 4,734 $ 145 $ 308,984 Total Liabilities $ 304,395 $ 4,734 $ 145 $ 308,984 213 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2016 Balance Balance 7/1/2015 Additions Deductions 6/30/2016 CFD 2000-01 South Etiwanda Assets: Cash and investments $ 77,346 $ - $ 77,346 $ - Receivables: Taxes 552 - 552 - Accrued interest 32 - 32 - Restricted assets: Cash and investments with fiscal agents 65,801 - 65,801 - Total Assets $ 143,731 $ - $ 143,731 $ - Liabilities: Payable to trustee $ 143,731 $ - $ 143,731 $ - Total Liabilities $ 143,731 $ - $ 143,731 $ - CFD 2000-02 Rancho Cucamonqa Corporate Park Assets: Cash and investments $ 424,196 $ - $ 424,196 $ - Receivables: Taxes 15,364 - 15,364 - Accrued interest 179 - 179 - Restricted assets: Cash and investments with fiscal agents 540,706 - 540,706 - Total Assets $ 980,445 $ - $ 980,445 $ - Liabilities: Payable to trustee $ 980,445 $ - $ 980,445 $ - Total Liabilities $ 980,445 $ - $ 980,445 $ - AD 93-1 Masi Commerce Center Assets: Cash and investments $ 497,337 $ 251,293 $ 243,912 $ 504,718 Receivables: Accrued interest 209 287 209 287 Restricted assets: Cash and investments with fiscal agents 242,500 41,406 41,406 242,500 Total Assets $ 740,046 $ 292,986 $ 285,527 $ 747,505 Liabilities: Payable to trustee $ 740,046 $ 251,295 $ 243,836 $ 747,505 Total Liabilities $ 740,046 $ 251,295 $ 243,836 $ 747,505 214 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2016 (CONTINUED) Balance Balance 7/1/2015 Additions Deductions 6/30/2016 CFD 2001-01 Series A Assets: Cash and investments $ 955,329 $ - $ 955,329 $ - Receivables: Accounts 100,000 - 100,000 - Taxes 5,240 - 5,240 - Accrued interest 1 - 1 - Restricted assets: Cash and investments with fiscal agents 709,366 - 709,366 - Total Assets $ 1,769,936 $ - $ 1,769,936 $ - Liabilities: Payable to trustee $ 1,769,936 $ - $ 1,769,936 $ - Total Liabilities $ 1,769,936 $ - $ 1,769,936 $ - CFD 2001-01 Series B Assets: Cash and investments $ 54,065 $ - $ 54,065 $ - Restricted assets: Cash and investments with fiscal agents 66,821 - 66,821 - Total Assets $ 120,886 $ - $ 120,886 $ - Liabilities: Payable to trustee $ 120,886 $ - $ 120,886 $ - Total Liabilities $ 120,886 $ - $ 120,886 $ - CFD 2003-01 Series A Assets: Cash and investments $ 664,795 $ 1,055,022 $ 1,025,365 $ 694,452 Receivables: Taxes 384 127 384 127 Accrued interest 280 240 280 240 Restricted assets: Cash and investments with fiscal agents 1,417,120 336,040 336,100 1,417,060 Total Assets $ 2,082,579 $ 1,391,429 $ 1,362,129 $ 2,111,879 Liabilities: Payable to trustee $ 2,082,579 $ 1,055,436 $ 1,026,136 $ 2,111,879 Total Liabilities $ 2,082,579 $ 1,055,436 $ 1,026,136 $ 2,111,879 CFD 2003-01 Series B Assets: Cash and investments $ 204,326 $ 193,955 $ 190,524 $ 207,757 Receivables: Accrued interest 86 101 86 101 Restricted assets: Cash and investments with fiscal agents 132,485 57,391 57,397 132,479 Total Assets $ 336,897 $ 251,447 $ 248,007 $ 340,337 Liabilities: Payable to trustee $ 336,897 $ 251,369 $ 247,929 $ 340,337 Total Liabilities $ 336,897 $ 251,369 $ 247,929 $ 340,337 215 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2016 Balance Balance 7/1/2015 Additions Deductions 6/30/2016 CFD 2000-03 Rancho Summit Redemption Assets: Cash and investments $ 382,508 $ 558,317 $ 537,161 $ 403,664 Receivables: Taxes 3,953 2,273 3,953 2,273 Accrued interest 161 148 161 148 Restricted assets: Cash and investments with fiscal agents 12 137,672 137,681 3 Total Assets $ 386,634 $ 698,410 $ 678,956 $ 406,088 Liabilities: Payable to trustee $ 386,634 $ 560,618 $ 541,164 $ 406,088 Total Liabilities $ 386,634 $ 560,618 $ 541,164 $ 406,088 CFD 2000-03 Rancho Summit Reserve Assets: Restricted assets: Cash and investments with fiscal agents $ 262,110 $ 7 $ 6 $ 262,111 Total Assets $ 262,110 $ 7 $ 6 $ 262,111 Liabilities: Payable to trustee $ 262,110 $ 26 $ 25 $ 262,111 Total Liabilities $ 262,110 $ 26 $ 25 $ 262,111 CFD 2004-01 Assets: Cash and investments $ 1,912,903 $ 2,433,718 $ 2,400,366 $ 1,946,255 Receivables: Taxes 26,000 34,647 26,000 34,647 Accrued interest 806 814 806 814 Restricted assets: Cash and investments with fiscal agents 1,189,500 685,536 685,586 1,189,450 Total Assets $ 3,129,209 $ 3,154,715 $ 3,112,758 $ 3,171,166 Liabilities: Accounts payable $ 320 $ 3,500 $ 3,820 $ - Payable to trustee 3,128,889 2,468,612 2,426,335 3,171,166 Total Liabilities $ 3,129,209 $ 2,472,112 $ 2,430,155 $ 3,171,166 CFD 2000-03 Park Maintenance Assets: Cash and investments $ 485,642 $ 446,413 $ 435,006 $ 497,049 Receivables: Taxes 2,868 1,755 2,868 1,755 Accrued interest 204 287 204 287 Total Assets $ 488,714 $ 448,455 $ 438,078 $ 499,091 Liabilities: Accounts payable $ 12,514 $ 144,208 $ 138,207 $ 18,515 Accrued liabilities 6,078 6,268 6,178 6,168 Payable to trustee 470,122 460,054 455,768 474,408 Total Liabilities $ 488,714 $ 610,530 $ 600,153 $ 499,091 216 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2016 (CONTINUED) Balance Balance 7/1/2015 Additions Deductions 6/30/2016 CFD 2006-01 Assets: Cash and investments $ 737,118 $ - $ 737,118 $ - Receivables: Taxes 2,549 - 2,549 - Accrued interest 311 - 311 - Restricted assets: Cash and investments with fiscal agents 379,651 - 379,651 - Total Assets $ 1,119,629 $ - $ 1,119,629 $ - Liabilities: Payable to trustee $ 1,119,629 $ - $ 1,119,629 $ - Total Liabilities $ 1,119,629 $ - $ 1,119,629 $ - CFD 2006-02 Assets: Cash and investments $ 396,888 $ - $ 396,888 $ - Receivables: Taxes 2,529 - 2,529 - Accrued interest 167 - 167 - Restricted assets: Cash and investments with fiscal agents 197,721 - 197,721 - Total Assets $ 597,305 $ - $ 597,305 $ - Liabilities: Payable to trustee $ 597,305 $ - $ 597,305 $ - Total Liabilities $ 597,305 $ - $ 597,305 $ - Employee Deduction Account Assets: Cash and investments $ 83,618 $ 391,641 $ 379,821 $ 95,438 Total Assets $ 83,618 $ 391,641 $ 379,821 $ 95,438 Liabilities: Accounts payable $ 447 $ - $ 447 $ - Due to external parties/other agencies 83,171 235,375 223,108 95,438 Total Liabilities $ 83,618 $ 235,375 $ 223,555 $ 95,438 Assessment District 82-2 Assets: Cash and investments $ 5 $ - $ - $ 5 Total Assets $ 5 $ - $ - $ 5 Liabilities: Payable to trustee $ 5 $ - $ - $ 5 Total Liabilities $ 5 $ - $ - $ 5 217 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2016 Balance Balance 7/1/2015 Additions Deductions 6/30/2016 Special Tax Refunding Bonds 2015 Assets: Cash and investments $ - $ 1,887,426 $ 396,722 $ 1,490,704 Receivables: Accounts - 100,000 - 100,000 Taxes - 6,825 - 6,825 Accrued interest - 426 - 426 Restricted assets: Cash and investments with fiscal agents - 1,247,858 444,118 803,740 Total Assets $ - $ 3,242,535 $ 840,840 $ 2,401,695 Liabilities: Payable to trustee $ - $ 4,731,931 $ 2,330,236 $ 2,401,695 Total Liabilities $ - $ 4,731,931 $ 2,330,236 $ 2,401,695 Totals-All Agency Funds Assets: Cash and investments $ 21,204,682 $ 13,447,529 $ 14,864,670 $ 19,787,541 Receivables: Accounts 188,053 216,408 185,440 219,021 Taxes 113,947 60,975 113,947 60,975 Accrued interest 4,233 5,266 4,229 5,270 Restricted assets: Cash and investments with fiscal agents 5,203,793 2,505,910 3,662,360 4,047,343 Total Assets $ 26,714,708 $ 16,236,088 $ 18,830,646 $ 24,120,150 Liabilities: Accounts payable $ 74,773 $ 1,440,067 $ 1,452,065 $ 62,775 Accrued liabilities 22,239 24,534 22,339 24,434 Deposits payable 8,333,593 1,755,342 2,101,870 7,987,065 Payable to trustee 17,950,932 11,258,116 13,258,610 15,950,438 Due to external parties/other agencies 333,171 235,607 473,340 95,438 Total Liabilities $ 26,714,708 $ 14,713,666 $ 17,308,224 $ 24,120,150 218 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2016 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. 219 THIS PAGE INTENTIONALLY LEFT BLANK 220 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. 223-226 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. 227-231 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. 232-237 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. 238-239 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. 240-242 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 221 THIS PAGE INTENTIONALLY LEFT BLANK 222 00 co rn LO rn n 0) LO n LO D O rn O(0 n n 00) m n (D (0 O O Cl O W O(fl l0 O O CO n aOD LO� N N 'T O � N nm r- ID N O LO O V O N (C LO 7 N V O)O N N LO M O LO aD N M N M O N M (0 N V OD co V 00 EH (i) Efl EA Hi V3 M N O LO U, co CO M 00 O CO R CA M � CO O CO m T O O CO� M CO CO M 00 W C, CO M O LMO 0 O Ln CO LUO co O CO N M CO zr O co V M@ LO 00 N M r� M M LO co O N CO 00 N LO M EA EA EA EA EA EA O O O N 00 co M M 7 N m O V N O O O O O 7 N N CO cc CO <n O M Ih 7 N 7 CA M W M 'Coo LO O aO 'N", N Q)N O 00 M V(O V L m Co co Vi COO V C LO OO m C N O M O N N N CO N O N V M M lO O N h 7 -It� m V 7 m (H (H EA eA (R 05) LO V �O m M 7N co ID R M (O O W V O CO a0 L�O O O 7 0 f— N W M 7 CO aD O CO N 00 r� W M M W LO (D co M O R f� M a0 (O O N N M I� O) N CO 7 7 O O f—N W N M M Ih N co V 7 W It O (H 613 Cfl eA 613 (H (NO LOO 0N7 m CO m C LO OO V 7 O V M (O C V O O N R co O O W In W O CA C6 aD Ln W co LO I- M M c0 LO OD CO CD O N V " V cc CO O(O M N N N LO c0 M O �LO I- W In c0 N N M N LO c0 LO co LO O V LO O } (i> d3 fA eA (R (H NO 00 r-r- N 00 O Cl) CO r--(D Cl) N 0)Cl) 00 CO LO O V N(MCO LL CA M In W O N O M CA (O LO (7 N N (IO O O M 7 M (r0'" Z N cM 7 O) r- (0 Cl) 0 7 h N 0 COO N O O N co OD N co 00 C W QO N H3 (f3 EA EA H3 tf3 U I- a) O O 04(00 O N C"O O� m N O O O E >- V L) Ln W N O (O W LO 0 0 N O O U U O W O co LO 00 I-00 7 00 r LO O O >. 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N G. c c6 O N O N O 7 w O N U O N X Co M a :EU > > N � .O+ ?i & CDc9 OQ C NN ON O ON E O QUamcw L D N O> . ga mcca c x O ma n nL a d cym yo> 0)w m a 0) a)O > 0 m O ° � � o c n-O O > -co; -0- � CN O a) �02 T N -8L ,o Om Y'00 � 9Coo OE O0 �j a)° TE � o noQi Oy zo Oa) W > ll cU p 0 ._ L /) U > L) 01QCo E N a@@ (n O CON 6 Ecw3: -Es-0 o Lo E o E ywy(U c L ._ N p Ecu ._O m O N cai C >c V L CO o( O 0d 0 cu > o y J EWU > co .CD wA 'O p co Utri Nyc a) a) MMc� �v 2 O 4) ta) > a) :E m (u m a) Lo a) O 2 A. 0 d O y w > > U UULL O Z) H ap a (n r m pry M a u C6 z 228 CITY OF RANCHO CUCAMONGA Principal Property Taxpayers Current Year and Nine Years Ago 2016 2007 Percent of Percent of Total City Total City Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Rancho Mall LLC $ 291,634,170 1.28% $ - 0.00% Homecoming I at Terra Vista LLC 239,466,709 1.05% 91,811,884 0.52% Prologis California I LLC/Catellus 142,163,871 0.63% - 0.00% T Napf Meritage Ownership LLC 117,327,295 0.52% - 0.00% WNG Rancho Cucamonga 496 LLC 103,708,169 0.46% - 0.00% Frito-Lay North America Inc 98,793,043 0.43% 86,293,518 0.49% RREEF America Reit 11 Corporation 94,723,200 0.42% - 0.00% Tamco 89,181,623 0.39% - 0.00% Goodman Rancho SPE LLC 87,355,997 0.38% - 0.00% EQR Fanwell 2007 LP 86,799,700 0.38% - 0.00% EQR on Fourth LLC - 0.00% 89,950,391 0.51% PPF MF 9200 Milliken Ave LP - 0.00% 72,068,050 0.41% KW Mountain Vista LLC - 0.00% 68,988,923 0.39% Ari-Atrium Office Bldg LLC - 0.00% 66,505,000 0.38% Catellus Development Corporation - 0.00% 65,553,429 0.37% Gruma Corporation Mission Foods - 0.00% 63,836,986 0.36% Wal-Mart Stores, Inc. - 0.00% 59,585,822 0.34% Fairfield Meritage LP - 0.00% 57,407,459 0.33% $ 1,351,153,777 5.95% $722,001,462 4.13% Source: San Bernardino County Assessor 2006/07 and 2015/16 Combined Tax Rolls and the SBE Non Unitary Tax Roll; HdL, Coren & Cone 229 CITY OF RANCHO CUCAMONGA Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 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% 2016 105,120,614 103,112,427 98.09% N/A 103,112,427 98.09% 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 230 CITY OF RANCHO CUCAMONGA Principal Sales Tax Remitters Current Year and Nine Years Ago 2016 2007 Business Name Business Category Business Name Business Category Apple Electronics/Appliance Stores Ameron International Contractors Bass Pro Shops Outdoor World Sporting Goods/Bike Stores Ameron Steel Pipe Contractors Best Buy Electronics/Appliance Stores Apple Electronics/Appliance Stores Chevron Service Stations Best Buy Electronics/Appliance Stores Costco Discount Department Stores Chevron Service Stations Home Depot Lumber/Building Materials Circuit City Electronics/Appliance Stores JC Penney Department Stores Costco Discount Department Stores Jeromes Home Furnishings Dan Reshaw Mobil Service Stations Living Spaces Furniture Home Furnishings Home Depot Lumber/Building Materials Lowes Lumber/Building Materials JC Penney Department Stores Macys Department Stores Kayo Oil Service Stations Meadowbrook Meat Company Food Service Equip./Supplies Living Spaces Furniture Home Furnishings Monoprice Fulfillment Centers Lowes Lumber/Building Materials NIC Partners Electrical Equipment Macys Department Stores Parallon Supplies Chain Solutions Medical/Biotech Mervyns Department Stores Phos-Check Fire Retardants Drugs/Chemicals Novartis Animal Health Medical/Biotech Ralphs Grocery Stores Liquor Sears Department Stores Sears Department Stores Shell/Texaco Service Stations Tamco Heavy Industrial Southwire Energy/Utilities Target Discount Department Stores Tamco Heavy Industrial Tesoro Refining&Marketing Service Stations Target Discount Department Stores Vector Resources Contractors Walmart Discount Department Stores Verizon Wireless Electronics/Appliance Stores Walters Wholesale Electric Plumbing/Electrical Supplies Walmart Discount Department Stores West End Material Supply Lumber/Building Materials Walters Wholesale Electric Plumbing/Electrical Supplies Wickes Home Furnishings Firms listed alphabetically Source: The HdL Companies; State Board of Equalization 231 CITY OF RANCHO CUCAMONGA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year General Tax Total Ended Obligation Capital Allocation Governmental June 30 Bonds Leases Bonds 1 Loans Activities 2007 $ - $ - $ 304,685,000 $ 23,102,037 $ 327,787,037 2008 - - 424,060,000 21,705,050 445,765,050 2009 - - 413,655,000 20,754,833 434,409,833 2010 - - 404,990,000 20,005,200 424,995,200 2011 - - 395,920,000 19,238,811 415,158,811 2012 3 - - - - - 2013 3 - 2,615,708 - - 2,615,708 2014 3 - 2,083,890 - - 2,083,890 2015 3 - 1,564,076 - - 1,564,076 2016 3 - 1,034,303 - - 1,034,303 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. 232 Business-type Activities Utility Total Total Percentage Debt Revenue Certificates of Business-type Primary of Personal Per Bonds Participation Activities Government Income 2 Capita 2 327,787,037 6.81% $ 2,026 - - - 445,765,050 8.63% 2,587 - - - 434,409,833 7.91% 2,492 - - - 424,995,200 8.22% 2,420 - - - 415,158,811 8.17% 2,345 - - - - 0.00% - - - #VALUE! #VALUE! #VALUE! 2,083,890 0.04% 12 - - - 1,564,076 0.03% 9 - - - 1,034,303 0.02% 6 233 CITY OF RANCHO CUCAMONGA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands,except Per Capita) Outstanding General Bonded Debt Fiscal Year General Tax Percent of Percentage Ended Obligation Allocation Assessed of Personal Per June 30 Bonds Bonds Total Value 1 Income 2 Capita 2 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' - - - 0.00% 0.00% - 2013' - - - 0.00% 0.00% 2014 s - - - 0.00% 0.00% 2015' - - - 0.00% 0.00% 2016' - - - 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. 234 CITY OF RANCHO CUCAMONGA Direct and Overlapping Debt June 30, 2016 City Assessed Valuation $ 22,718,921'000 z City Percentage Total Share of Applicable Debt 6/30/15 Debt Overlapping Tax and Assessment Debt: Metropolitan Water District 0.927% $ 92,865,000 860,859 Chaffey Community College District 24.034% 149,080,324 35,829,965 Chaffey Joint Union High School District 44.724% 309,906,255 138,602,473 Alta Loma School District 98.732% 11,644,861 11,497,204 Central School District 97.913% 36,860,968 36,091,680 Cucamonga School District Community Facilities District No. 97-1 100.000% 4,780,000 4,780,000 Etiwanda School District CFD Nos. 1, 2&3 100.000% 2,600,000 2,600,000 Etiwanda School District CFD No. 7 21.530% 12,280,000 2,643,884 Etiwanda School District CFD No. 8 68.006% 6,470,000 4,399,988 Etiwanda School District CFD No. 9 70.844% 8,015,000 5,678,147 Etiwanda School District CFD Nos. 2004-2&2007-1 100.000% 16,545,000 16,545,000 Etiwanda School District Rancho Etiwanda Public Facilities Authority CFD No. 1 100.000% 17,040,000 17,040,000 Fontana Unified School District 0.410% 206,850,234 848,086 Upland Unified School District 0.122% 100,523,399 122,639 City of Rancho Cucamonga CFDs 100.000% 74,577,000 74,577,000 City of Rancho Cucamonga 1915 Act Bonds 100.000% 1,325,000 1,325,000 Total overlapping tax and assessment debt 1,051,363,041 353,441,925 Direct and Overlapping General Fund Debt San Bernardino County General Fund Obligations 12.106% 435,550,000 52,727,683 San Bernardino County Pension Obligations Bonds 12.106% 419,370,824 50,769,032 San Bernardino County Flood Control Dist General Fund Oblig 12.106% 78,165,000 9,462,655 Chaffey Community College District General Fund Obligations 24.034% 11,155,666 2,681,153 Cucamonga School District Certificates of Participation 40.749% 7,710,000 3,141,748 Fontana Unified School District Certificates of Participation 0.410% 36,045,000 147,785 City of Rancho Cucamonga General Fund Obligations 100.000% - - West Valley Vector Control District Certificates of Participation 33.309% 3,040,000 1,012,594 Total gross direct and overlapping general fund debt 991,036,490 119,942,650 Overlapping Tax Increment Debt(Successor Agency) 100.000% 299,155,000 299,155,000 Total overlapping debt $ 2,341,554,531 772,539,575 City direct debt 1,034,303 Total direct and overlapping debt $ 773,573,878 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 6/30/16. 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 235 O O O 00 co OD OD O O Cl) (M M M G O (n IQ n M M O LO W O _ O O O CO N M Cl) n W W N N 69 EA 69 (A W) V) o N N O O O C O (0 co N V V fo� 6'> Cl) M o OD OD O L L G oLO n r- N N N N N V V fA N Cl) M o n n O oci oc� O O ( (Op Op O N 0) 0) Cl) M fA V3 00 00 0 00 00 O V V O (0 co 0O N N N 04 0) 0) L (M M } 43 N (a 00 00 0 � N= () N N 0) m o gcO m as ii � LO C) @ 2 o m (IS O > a) l6 Y'O C N (M 0) a Y .�.. c_ O Cl) co y Y 0 O C C 61> N u m t (D O _T U n n O N (D 0-U N (3 O C) 0 w 3 ul m w O O 0) 0 m U M M M a) c N E O O p N Cl) M > CMU a. �.. m N- n c o > m d 0 r00i Cl) o0 EE � mQN y n n = O m 7 ° w 0 w N O W 00 O N O U ul yO N n LO m O y Y E y N O)Q� � m 0 N N m a) O C fn M M O s N O w Z. O O CJ r n a) m a) y6 o O 7 m Vco co m 3 N U v a) O > c > a) E ' m N �_ O O Y 00 00 O"N Y T l0 c U a) D O a) V3 Vj N 7 m O n r U� m E > N M m c Q a) 0) c OD OD o 'O O C - E Q O_ M M O �p a)o c '- E C 0) m ifl U u E a°i a c Q O m mwa) mo m rn a o o N c v-o E m U 0 N N y a) W N E O _ 00 00 j d a) ♦Q r (n 3 N o V H3 V wN O3 a0)) C m c(D UJZ Nuo a) 1 U3 5 10 o m m m O m -Cm > 3 Q a) mC- 0 0 rm w O_ n U O . O m(p U � a) (Dc Q o a) E 0 a) o 2 mco E coo U o= o E > Qc > a) o v o c C �. a) C e - '5 j 2 L (6 m y a)C m Z '� } @ m m m rn a) n� m - oc � yrr _ E co Q m L) m c m m vma E �� a) yC3 `ow o m a E a m > co � o N Yo T :- co LL LL 'O "O 2 N O'l` a) t L C 7 U a) a) ul ~ > O)7 N N. c a c m m _ m c m a) m m 0 N m 7 i Q - U a v a a m rn 3 r _ O) N m m N y a) a)(D' m O O N O O (n_O 7 N O a) O m a) Q 00 J Z2v= Q U U Q O U J J O H J H J (n 236 CITY OF RANCHO CUCAMONGA Pledged-Revenue Coverage Last Ten Fiscal Years (In Thousands) Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment Principal Interest Coverage 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 20152 n/a n/a n/a n/a 2016 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. 237 CITY OF RANCHO CUCAMONGA Demographic and Economic Statistics Last Ten Calendar Years Per Personal Capita Income' Personal Unemployment Calendar Population (in thousands) Income' Rate Year (1) (2) (2) (3) 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% 2015 175,251 5,365,133 30,613 4.8% Sources: (1) California State Department of Finance (2) 2000-2009 Income Data: ESRI; 2010 and later Income Data: U.S. Census Bureau (3) California Employment Development Department 238 CITY OF RANCHO CUCAMONGA Principal Employers Current Year and Nine Years Ago* 2016 2007 Percent of Percent of Number of Total Number of Total Employer Employees, Rank Employment Employees, Rank Employment Inland Empire Health Plan (IEHP) 1,450 1 1.57% n/a n/a n/a Chaffey Community College 1,335 2 1.44% 1,516 1 1.87% Etiwanda School District 1,025 3 1.11% 1,267 2 1.56% Amphastar Pharmaceutical 880 4 0.95% 880 3 1.09% City of Rancho Cucamonga 855 5 0.92% 842 4 1.04% Southern California Edison 800 6 0.86% 800 5 0.99% Alta Loma School District 650 7 0.70% 750 6 0.92% Big Lots Distribution Center 605 8 0.65% n/a n/a n/a Mercury Insurance Company 595 9 0.64% 606 7 0.75% Central School District 527 10 0.57% n/a n/a n/a West Coast Liquidators n/a n/a n/a 565 8 0.70% Frito-Lay, Inc. n/a n/a n/a 561 9 0.69% CIVIC Steel Fabricators n/a n/a n/a 517 10 0.64% 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 239 O N m LO m of 7 r- N N co O O N 00 N N (O 7 M CO V aD LO 00 N M 0 O O N O M N m O 0 O 0 N M 0 O O N O N N co O N LO 000 00 O co N N 00 O N Z >+ N M O IZI-M Q W M co 0 O N N N co CL Q LU i CN O V T d U U a } 0 ai 0 00 (O N N Co 3 LL 0 0 r- M LL C M N c0 Z d N a O ~ cq O LL O J 0 E C 7 V N r- L1O O V LL M 00 N c N V C N 0 _ r- r- � C LO N N 00 3 O N N M _M L .3 00 (D O �t O r- LO >' M O V 00 f- Ln C M N N 00 3 o U N 0 C a @ C N m C C @ d m U E 0 @ 3 � c � � N O @ 2M C n U Q O C > rn N C O �>, u0i N O LL O @ U O 3 3 N O > w U - i O fl 3 O 3 O O 0 ~ O O E O LL (� d W U U z a a) co 240 I- LO 6) N O -It (D -It 7 CO O fA LO 7 O M r- m 00 O co r- N o r- N M N CD C M V f0) Ll � O V Ll Cl (C O ItCDCl) L(N Lo 'IT r.- N Cl) N (N Lf) M O N N O Cl) N I- 00 (.0 (D co O 00 O N 7 CT) � LO M 7 LO I- LO N N O rl- �t 00 C Lf) M O O (C M O (C It O N Lf) LO co (D C14 N V N 00 V O co V CO N N N O 0) N 00 0 7 O) 00 M M (D 0 7 LO co O) O Cl) N O (fl co 00 (D 00 p Lf) M M M M W coM 00 It O N N V V 00 N (D Lf) N O O N N M N N O N 00 It (O O (O co (O r N O W LO N 00 CO O O LO 6) 0) M co 7 OD p � O) O O O � O — M N L� Lf) N N V M N N Cl) 00 O N co O N N N N 00 r-- r-- M LO eM N _. Cl) r- (O co (O h co M (O O �t 6) LLI 00 LO r-- W M V V N 7 O Cr � (fl lq M M (.O N M J m N i L6 N N C\ N a } O O N � � (co M O LO LO O coc N O N W N N V V M V — � Lf) N CO Ln M fA O O EL N M V M (p N N co 00 Cl) (N coCl) w N N Q � C 7 O Z r-- co r-- co (31) � co CO LO O �_ _O (O 0 ti O O O N (A 00 M M (S) O O M M Lf) O M M fA N Lf) Qi N O 'IT It 0') Cl) N N 00 N r— U N N V O O L V Ocu fA (� O O 0 p C U 6) h M 6) (O O 00 r-- (O co LO co r-- 00 LO 6) O (O � O M 00 O Cl) 6) Cl) 00 = O "t O Lf) O N O (O M Lf) M M coO 7 IL _ V C LL C O N O LO Cl)— — N N M _O 0') w Z N co O y p (SS N LL J O CO CO V CO LO N 00 V LO V O O O � N Cl) V M LO CO CO I- N O � co fA LC) M Lf) O O Nr- N 00 V V M O co w Lfl [b LO 00 V M (O N N � N _ U (.� N M O � V7 N W 00 (.000 N co 00 00 O O O (.0 r.- .p O CO LO �2 CO N V V M N N O M 00 O O V O CO O CO O co Lf)00 � N M (O O N NO LO N N M O O E O C N m O N N V7 N f6 V7 E N Q O _p m O c c N U E VOi 'O E p U O U N U C C C 3 Ln c .N I (n m 00) � c '° E ° ° 2 0 > O V) O (6 (0 U `p O N E c fo m ap m o>= m U ' N O C E p OL O V) T -p LL 7 fz O N f2 U K r "=_ U N O > Q.9 ,�. 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