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Home My WebLink About2017/06/30 Comprehensive Annual Financial Report-7 _ .�.,. -/0// ANNIVERSARY (�'DITION c ity of -- �..' ="- CHOUCAMONGA California Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2017 1� M CITY OF RANCHO CUCAMONGA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2017 Prepared by: Finance Department THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal..................................................................................... CityOfficials................................................................................................. OrganizationChart....................................................................................... Certificate of Achievement for Excellence in Financial Reporting ............... FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT ....................................................... MANAGEMENT'S DISCUSSION AND ANALYSIS ..................................... BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements: Statement of Net Position............................................................... Statement of Activities..................................................................... Fund Financial Statements: Balance Sheet - Governmental Funds ............................................ Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..................................................... Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds .................................................... Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities..................................................................... Statement of Net Position - Proprietary Funds ............................... Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds ..................................................... Statement of Cash Flows - Proprietary Funds ................................ Statement of Fiduciary Net Position - Fiduciary Funds ................... Statement of Changes in Fiduciary Net Position - Fiduciary Funds Notes to Financial Statements............................................................... Page 1 5 25 26 28 33 34 36 37 38 39 40 41 43 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 TABLE OF CONTENTS Page Numher REQUIRED SUPPLEMENTARY INFORMATION Notes to Required Supplementary Information.......................................................................... 96 Budgetary Comparison Information: Budgetary Comparison Schedule - General Fund............................................................... 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 - 152 Miscellaneous Plan - Agent Multiple -Employer Plan ......................................................... 100 Schedule of Plan Contributions - Miscellaneous Plan - 154 Agent Multiple -Employer Plan............................................................................................ 101 Schedule of Proportionate Share of the Net Pension Liability - 156 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 — 159 SafetyRate Plan................................................................................................................ 104 Schedule of Plan Contributions — Safety Rate Plan.......................................................... 105 Schedule of Changes in Net Pension Liability and Related Ratios — 162 PARS Retirement Enhancement Plan............................................................................... 106 Schedule of Plan Contributions - PARS Retirement Enhancement Plan .......................... 107 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds .................................................. 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds................................................................ 134 Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds: GasTax.............................................................................................................................. 152 Recreation.......................................................................................................................... 153 ParkDevelopment.............................................................................................................. 154 Beautification...................................................................................................................... 155 LightingDistricts................................................................................................................. 156 Landscape Maintenance Districts...................................................................................... 157 Transportation.................................................................................................................... 158 PedestrianGrant................................................................................................................ 159 Community Development Block Grant............................................................................... 160 Assessment Administration................................................................................................ 161 San Sevaine/Etiwanda Drainage....................................................................................... 162 AirQuality Improvement..................................................................................................... 163 South Etiwanda Drainage.................................................................................................. 164 Lower Etiwanda Drainage.................................................................................................. 165 MasiCommerce Center..................................................................................................... 166 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 TABLE OF CONTENTS Page COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds (Continued) MeasureI........................................................................................................................... 167 LibraryServices................................................................................................................. 168 Proposition 84 - Park Bond Act.......................................................................................... 169 AssetForfeiture................................................................................................................. 170 UsedOil Recycling Grant................................................................................................... 171 COPSProgram Grant........................................................................................................ 172 Community and Recreation Centers Impact Fee............................................................... 173 Park Improvement Fee....................................................................................................... 174 DrainageFacilities.............................................................................................................. 175 CAState Library................................................................................................................. 176 AB 2928 Traffic Congestion Relief..................................................................................... 177 Litter Reduction Grant........................................................................................................ 178 SAFETEA-LU Grant........................................................................................................... 179 Underground Utilities.......................................................................................................... 180 Safe Routes to School Program........................................................................................ 181 COPS Hiring Program Grant.............................................................................................. 182 Citywide Infrastructure Improvement................................................................................. 183 Proposition1 B - SLPP....................................................................................................... 184 CA State Library Staff Innovation Fund Grant................................................................... 185 The Big Read Library Grant............................................................................................... 186 Homeland Security Grant - Fire......................................................................................... 187 Public Resource Grants..................................................................................................... 188 Proposition1B.................................................................................................................... 189 Henderson / Wardman Drainage....................................................................................... 190 Integrated Waste Management.......................................................................................... 191 Proposition 42 - Traffic Congestion Mitigation................................................................... 192 Freedom Courtyard Resource Grant................................................................................. 193 Justice Assistance Grant Program..................................................................................... 194 Emergency Management Performance Grant................................................................... 195 Homeland Security Grant - Police...................................................................................... 196 Used Oil Recycling Program.............................................................................................. 197 LibraryImpact Fee............................................................................................................. 198 PoliceImpact Fee.............................................................................................................. 199 Animal Center Impact Fee................................................................................................. 200 ParkLand Acquisition........................................................................................................ 201 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 TABLE OF CONTENTS Page Number Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds: 238 Assessment District 82-1................................................................................................... 202 Assessment District 84-1................................................................................................... 203 CFD2001-01...................................................................................................................... 204 Etiwanda Equestrian Facility.............................................................................................. 205 CFD 2004-01 Rancho Etiwanda........................................................................................ 206 CFD 2006-01 Vintner's Grove............................................................................................ 207 CFD 2006-02 Amador on Route 66................................................................................... 208 Combining Statement of Net Position — Non -Major Proprietary Funds .................................... 211 Combining Statement of Revenues, Expenses and Changes in Fund Net Position — Non -Major Proprietary Funds.................................................................. 212 Combining Statement of Cash Flows — Non -Major Proprietary Funds .................................... 213 Combining Statement of Net Position - Internal Service Funds ............................................... 215 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds.............................................................................. 216 Combining Statement of Cash Flows - Internal Service Funds ................................................ 217 Combining Balance Sheet - All Agency Funds......................................................................... 221 Combining Statement of Changes in Assets and Liabilities - AIIAgency Funds...................................................................................................................... 227 STATISTICAL SECTION Financial Trends: Net Position by Component - Last Ten Fiscal Years......................................................... 233 Statement of Activities (Condensed) - Last Ten Fiscal Years ........................................... 234 Fund Balances of Governmental Funds - Last Ten Fiscal Years ...................................... 236 Changes in Fund Balances of Governmental Funds - LastTen Fiscal Years........................................................................................................ 237 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property ................................... 238 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ................................ 239 Principal Property Taxpayers - Current Year and Nine Years Ago ................................... 240 Property Tax Levies and Collections - Last Ten Fiscal Years ........................................... 241 Principal Sales Tax Remitters - Current Year and Nine Years Ago .................................. 243 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 TABLE OF CONTENTS Debt Capacity: Page Number Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................ 244 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years .............................. 246 Direct and Overlapping Debt.............................................................................................. 247 Legal Debt Margin Information - Last Ten Fiscal Years .................................................... 248 Pledged -Revenue Coverage - Last Ten Fiscal Years ....................................................... 249 Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Calendar Years ................................... 250 Principal Employers - Current Year and Nine Years Ago .................................................. 251 Operating Information: Full -Time and Part -Time City Employees by Function - Last Eight Fiscal Years .............. 252 Operating Indicators by Function - Last Eight Fiscal Years ............................................... 253 Capital Asset Statistics by Function - Last Eight Fiscal Years ........................................... 254 THIS PAGE INTENTIONALLY LEFT BLANK Mayor L. Dennis Michael I Mayor Pro Tem Lynne B. Kennedy Council Members William J. Alexander, Sam Spagnolo, Diane Williams City ManagerJohn R. Gillison 10500 Civic Center Drive I P.O. Box 807 1 Rancho Cucamonga, CA 91729-0807 1 909.477.2700 1 www.CityofRC.us December 15, 2017 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, 2017. 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, 2017, 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, 2017, are fairly presented in conformity with GAAP. The independent auditors' 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. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a 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 independent auditors' report. I. PROFILE OF THE CITY OF RANCHO CUCAMONGA General Information The City of Rancho Cucamonga currently has an estimated population of 177,324 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 1 of 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 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 of the notes to the financial statements 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; although during this time utilities, contracts costs, and other fixed overhead costs have continued to rise. During Fiscal Year 2016/17, the City recognized fully that by virtually any economic measure, the recession had ended; jobs were growing, employment was up, wages were on the rise, and the economy was showing positive growth. Going forward, we see the "recapturing of lost gains" is finally over and the City is poised for greater success and new heights it has not reached before. With a low crime rate, excellent education system, and growing source of employment, the City was recently ranked among the Top 50 places in the United States to start a family. Rancho Cucamonga was also recently named as one of the 20 best cities in the U.S. to find a job in, coming in at #6 on the list just behind San Francisco. The job growth in the Inland Empire over the last year was 3.2%, the second highest rate of any county in the state of California. Translated more locally, in June of 2017, Rancho Cucamonga's unemployment rate was 4.0%. Not only is anything below 5% considered full employment, but this rate is nearly 57% less than where the City was at the same time just five years earlier. It is expected that for the next five years the City will see similar or lower rates of unemployment. Statistically, the City is seeing year over year employment growth of almost 6%. Employment generated by firms in the City of Rancho Cucamonga increased by 23% from 2010 to 2015. The City itself has become a net jobs producer with the estimated growth in employment over the next five years anywhere between 30% and 45%. Put another way, in 2015 Rancho Cucamonga had just over 73,000 jobs in the City, and by 2020 we expect there to be at or above 88,000 jobs in the City. The jobs being generated by businesses in Rancho Cucamonga are well paying jobs as well. The average payroll per employee working for a business in the City amounted to $42,187 for 2015, some 13.7% ahead of where it was in 2011 (full and part time positions). Median annual household income in the City is nearly $60,000 per year. Some of the highest paying economic sectors in Rancho Cucamonga include Management Services ($72,384 annual salary), Wholesale Trade ($60,270), Finance/Insurance ($65,506) and Manufacturing and Professional Services (approximately $59,000). Currently, the strongest core economic sectors in the City that bring in money from outside the City are Manufacturing, Administrative Support, and Restaurant/Hotel, with the Retail Trade and Health Care as two of the top support sectors that primarily cater to residents located in the City. Manufacturing, Hotel/Restaurant, Transportation/ Warehouse, and Retail Trade have been experiencing strong job growth over the last five years. Looking forward, the City has an approved Economic Development Strategic Plan that focuses on specific target industries where there is a nexus between existing Rancho Cucamonga assets and opportunities for strong future growth. These areas include the key sectors Manufacturing, Professional/Scientific and Technical Services, and Retail/Accommodation/Food Services. See additional discussion under the "Highlights of Fiscal Year 2016/17" section — Economic Development. Budgetary Control The City adopts an annual budget where each department's budgeted appropriations are controlled at the character of expense level. These levels are defined as personnel services; operations and maintenance; capital outlay; debt service; cost allocation; and transfer out. Although the budget is monitored at the character of expense level, the legal level of budgetary control, that is the level at which expenditures cannot exceed appropriations, is the department level within the General Fund and at the function level for the Special Revenue, Debt Service, and Capital Projects Funds. Budgetary control is further maintained by the use of an encumbrance system. Revenues are also estimated annually in the adoption of the annual budget. Revenues and expenditures are monitored throughout the year with quarterly updates provided to the City Council. Long-term Financial Plannin Annually, the City updates a five-year Capital Improvement Program (CIP). Planned capital expenditures from special, non -operational funds for Fiscal Year 2017/18 total $51,408,970. The CIP includes: construction of the Cucamonga Storm Drain Upper Phase III; relocation of a current fire station to include a police substation; construction of a Data Center (Phase III of the training facility); expansion of the Public Works Services Department's warehouse; citywide street light acquisition and the citywide street light LED retrofit; initial designs of Etiwanda Creek Park Phase II; replacement of rubber panels with concrete panels at a railroad spur; local street pavement rehabilitation at various locations and a street widening project on Hermosa Avenue; and two traffic signal installations along with an Intelligent Transportation System. 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. 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, 2017, the City of Rancho Cucamonga does not have any bonded indebtedness. II. HIGHLIGHTS OF FISCAL YEAR 2016/17 Economic Development The Economic and 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 XT Green, Monoprice, Frito-Lay, and Tokyo Joe's, to open and/or expand in Rancho Cucamonga. Economic Development activities also included events and outreach efforts that support the City's target industries. For example, the City partnered with Chaffey College Intech Center and the Rancho Cucamonga Chamber of Commerce to host various events during National Manufacturing Day. This event promotes expansion of this industry and highlights career opportunities. The City continues to work closely with the Greater iv 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 during Fiscal Year 2016/17. However, the City has recently started to experience a softening in its hotel occupancy rate — from 81.2% in June 2017 to 80.6% in September 2017 — due to declines in tourism and travel, especially from overseas. Other events included the West Valley Regional Job Fair, where 75 local employers participated and approximately 500 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 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 continues to work with San Bernardino County Transpiration Authority (SBCTA) and Creative Housing Associates to develop ten acres of land adjacent to 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. More recently, the City was awarded a $200,000 SCAG Sustainability Grant for land use planning and design of this project. 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 and seniors 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 funds to allow for the project to remain affordable for a term of 55 years. In early 2017 the developer applied for tax credit financing, and unfortunately did not receive an award. Per the term of the agreement, the developer has three more opportunities to apply for these tax credits in order to complete the additional funding needed for this project. In the coming year, the developer will be applying for 9% tax credit financing. 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 contributed $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 applied for a 4% tax credit in 2017 and was successful in obtaining the funds. This project is currently under construction and expected to be completed in late 2018. V Additional Housina Proaram 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 45 families. 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. Capital Management Section The Capital Management 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 17 Capital Improvement Projects amounting to just over $12 million were completed during Fiscal Year 2016/17. The following are some of the other key capital projects that were completed during Fiscal Year 2016/17: • Local Street Pavement Slurry Seal • Haven Avenue Electric Distribution Line Extension • Victoria Street from Etiwanda to East pavement rehabilitation • Archibald Avenue from Hillside to North City limit and Haven Avenue from Wilson to North City limit pavement rehabilitations • Foothill Boulevard from Vineyard to Haven pavement rehabilitation • Spruce Avenue from Foothill to Base Line pavement rehabilitation • Paul Biane Library Second Floor Tenant Improvement • Los Amigos Park • Traffic Signal Video Detection • Red Hill Park Pedestrian Trail Renovation • Madrone Ave Street Widening and Utility Underground along the Los Amigos Park frontage vi Transportation Development Section The Transportation Development section of Engineering Services is the result of a merger of the former Land Development and Traffic Management sections in Fiscal Year 2016/17. This section is staffed by a team of engineers and development service representatives. The group provides important information and services to residents, business owners, developers, other departments within the City, and the various school districts. This group is responsible for the review and conditioning of proposed developments, as well as the technical plan check and permit issuance of developer -funded projects. The group also designs projects, is involved in the construction and operation of traffic control devices, and plans for future traffic and transportation needs. The team issues permits through the Accela system, handles research requests, explains department services, and provides superior customer service. During Fiscal Year 2016/17, a combined total of 1,602 permits were issued through this section for Right-of-way, Lane Closures, and Oversize Load permits. A key project was the collaboration between Transportation Development staff, Rancho Cucamonga High School (RCHS), and the Chaffey Joint High School District regarding the installation of the High -Intensity Activated CrossWalK, also known as the HAWK, adjacent to RCHS along Rochester Avenue. Other project highlights include the Fix -It Stations found along the Pacific Electric trail, and the joint venture between the Capital Management and Transportation Development Sections to install the new flashing yellow arrow signals around the City. Environmental Proarams 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: providing service to 6,798 participants and processing 441,870 pounds of waste at the Household Hazardous Waste Collection Facility, conducting over 900 storm water inspections, and participation in 27 community events. This year the section applied tax assessments and title liens on 208 properties to recover approximately $82,532.32 in delinquent trash account payments. Municipal Utilitv 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 Shopping Center as well as surrounding retail and commercial developments that were built within the Utility's service territory. The Utility has over 900 metered customers and continues to grow and provide excellent customer service to all its customers. The utility continues to embark on its mission to be a greener utility by utilizing renewable energy as part of its energy portfolio and continues to extend its distribution circuit and place new Pad Mounted Equipment switches and transformers along new development projects. During the year, the Utility began managing the ownership transition and maintenance of over 15,000 citywide streetlights purchased from Southern California Edison. Additionally, the Utility completed the Fiber Optic Master Plan, which provides the framework for the expansion of the City's network infrastructure to key strategic areas in a phased approach. The expansion incorporates a partnership with a private broadband retail provider in order to provide value to City residents and businesses by providing high speed broadband as an economic development tool for the City. Vii Public Works Services The Public Works Services Department maintains the City's growing infrastructure of buildings, streets, storm drains, parks, and landscape improvements. The 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. Following are the highlights within the Public Works Services Department during Fiscal Year 2016/17: Administration Division In addition to overseeing the operations of the Department's 170+ full-time and part-time employees and over $37 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 water reduction goals; continued improvement in 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. In addition to the regularly scheduled training program topics, the Public Works Safety Coordinator continued to implement a departmental Heat and Illness Prevention Plan to ensure compliance with the newly updated Cal/OSHA Heat Regulations. Facilities Maintenance Division The Facilities Maintenance Division is responsible for the operation and maintenance of 14 city -owned buildings throughout the city. Facilities 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: • Civic Center Patio Replacement For several years, the existing patio and planter areas outside the upper level of City Hall have had problems with water leaking into the offices in the plaza level. This project replaced all the brick pavers around the exterior of the upper level patios and replaced the waterproofing system. Animal Care and Adoption Center Makeover — This popular facility has been open to the community for 10 years, and it was starting to show signs of significant wear due to the busy day-to-day operations and the high volume of animals and visitors the Center receives. This "makeover" project addressed many of the needs for the animals, as well as the community and City staff. The scope of work included: new interior paint, new energy efficient lighting, and new sound acoustics designed to help reduce the interior noise level. The kennel area received new epoxy coating on the walls and floors, new enhanced stainless steel kennels and doors, along with improvements to the current plumbing and drain systems. The main lobby had new tile flooring installed, modifications to the customer service counter, and updating of the lobby's appearance. Several of these improvements will assist with the maintenance of the facility and should reduce maintenance efforts in the future. • LoanMart Field Audio Repairs — The stadium site was originally constructed in 1991, and the audio system needed to be replaced. In general, the projected lifespan of outdoor equipment is 5-10 years, while inside electronics may last up to 15 years. • Central Park Flooring Replacement — The marmoleum flooring in heavily trafficked hallways and rooms had reached the end of its service life and was replaced with vinyl tile. During the demolition of the existing flooring, the concrete slab underneath the marmoleum was tested for moisture content and all tests were negative for excessive moisture which resulted in a significant savings. • LoanMart Field Team Locker Room Carpet Replacement — The work consisted of removing and replacing the existing carpet in the home team, visiting team, and umpire locker rooms along with the removal and replacement of the existing carpet in the ticket office and elevator lobby which had reached the end of its service life. • City Facilities Roofing Replacement & Repair (Design)—Design plans were completed for the replacement of the roofing system at Lions West, in addition to the repair of the roofing systems at Lions East and the Animal Care and Adoption Center. Replacement and repairs will occur during Fiscal Year 2017/18. • Victoria Gardens Cultural Center Exterior Joint Replacement, Roof Repairs, and Exterior Painting — This project was originally budgeted for construction to occur in Fiscal Year 2016/17; however, this was postponed due to the larger courtyard expansion that is currently under design. • 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. This project started in Fiscal Year 2015/16 and was completed in Fiscal Year 2016/17. • City Council Chambers Media Revitalization Project, Phase II — Modifications and improvements to the City Council Chamber media system continued in Fiscal Year 2016/17 and included the addition of a new control panel at the City Clerk's station, addition of a new assistive listening system for compliance with ADA requirements, the addition of other connection points for additional devices to be connected to the system for media presentations, and the development of a control system for the remaining house lighting. • Public Works Services Center Warehouse Expansion (design) — Design contracts were executed for the Public Works Services Center warehouse expansion project that is anticipated to begin in fiscal year 2017/18. This will add approximately 13,500 square feet to the existing warehouse of a similar size. • Expansion of the Public Safety Video Network (PSVN) at the Metrolink parking lot and platform area. This phase will integrate into the existing citywide 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 seven elevators in the City. • City Hall Elevator Modernization Project This project was bid during Fiscal Year 2015/16; however, all bids far exceeded the budget. Staff revised the specifications and this project was re -bid during Fiscal Year 2016/17. Work will be completed in Fiscal Year 2017/18. • In addition to the numerous capital projects, there were also several large service contracts awarded/renewed including: window washing, security guards, card key entry systems, janitorial services, and fuel management systems. 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. ix • Vehicle Purchases — The City Council authorized the purchase of the following replacement vehicles: one heavy duty flatbed truck and kettles for the new thermoplastic program, one CNG storm drain truck, one graffiti truck, one CNG asphalt patch truck, one traffic signal aerial truck, as well as the purchase of a new heavy-duty utility truck for the emergency on-call program. • Thermoplastic Program The streets crew also purchased templates and other supplies to begin the thermoplastic application of street markings (such as stop bars and stop ahead markings, etc.) instead of using paint. This new system will increase the durability and lower maintenance costs of these markings. • Traffic Signal Controller Cabinet Purchases — Two new traffic signal controller cabinets were purchased during Fiscal Year 2016/17. These will be used to replace any cabinets damaged because of traffic collisions or equipment failure. • In addition to the purchase of the replacement traffic signal controllers, the signal maintenance contract was increased due to the significant increase in signal pole knock downs, major wire pulls, traffic signal controller repairs, uninterrupted power supply system repairs, etc. Some of this extra work was partially due to the amount of rain and wind experienced during the year. • Sidewalk Inspection Program — 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. This citywide process takes a total of 3 years to complete. 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 citywide stop ahead and signal ahead warning traffic signs were completed. Staff is in the process of replacing the stop ahead and signal ahead warning signs not meeting the minimum retro -reflectivity requirements set forth by the Manual on Uniform Traffic Control Devices (MUTCD). • 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 Fiscal Year 2016/17, a total of 3,646 catch basins were inspected, 181 catch basins required cleaning, and 26 storm drain lines required jetting. • Citywide Concrete Repair Contract — Staff prioritizes permanent repairs required by considering walkable areas around schools, safe routes to schools, senior centers, shopping centers, and areas identified with a large amount of lift and/or gap in the concrete walking surfaces. In Fiscal Year 2016/17, staff scheduled permanent concrete repairs in the Caryn Community area, Cucamonga Middle School area, segments of Milliken Avenue, and various parks and paseos in LMDs 2 and 4-R. • Many smaller projects were completed during Fiscal Year 2016/17 including: asphalt repairs, concrete 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 citywide concrete contract was also re -bid during Fiscal Year 2016/17. Parks and Landscane 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 x 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. LMD-4R Park Lighting Retrofit (final phase) — Over the last few years, staff has focused on the reduction of utility costs in the LMD-4R parks and paseos. This fiscal year was the final phase to remove and replace the existing park lighting fixtures with energy efficient inductive fixtures at Ralph M. Lewis Park, Mountain View Park, and the remaining lights at Milliken Park. These new lights will use 33% less electricity than the existing lighting fixtures, as well as reduce the amount of maintenance required because they have a significantly longer service life than the previous fixtures. • Award of Park Maintenance for PD -85 — At the direction of the City Council, staff solicited bids for a park maintenance contract for Red Hill and Heritage Parks. This was done as a cost saving measure in this district. Bids for the LMD-1 park maintenance was solicited and awarded in Fiscal Year 2015/16. • A "Pay to Play" credit card activated light control system was started in Fiscal Year 2015/16 and continued in Fiscal Year 2016/17. This was done as a cost savings measure to help offset structural deficits in LMD-1 and PD -85. • Tree Inventory — A citywide tree inventory data collection process was started in Fiscal Year 2015/16 and will take several years to complete. The process employs contracted labor using a City -issued iPad to identify the location, health, and other data on each City tree. This inventory will improve the tree trimming process and the efficiency of the tree crew. • Civic Center Landscape Renovation The scope of work included the removal of the existing landscaping and irrigation system and was replaced with new Date Palms, cobble paving, decomposed granite, landscape boulders, and a water efficient irrigation system. This project was originally bid in Fiscal Year 2015/16; however, all the bids received far exceeded the Engineer's estimate and were revised and re -bid during Fiscal Year 2016/17. • LED Lighting Upgrade (Lions Park Tennis Courts and Day Creek Park) — LED lights were purchased and installed by in-house crews to reduce electricity and maintenance costs for the tennis courts at Lions Park and Day Creek Park. • Water Resource Management/Drought Impact 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: • Preservation of turf in the active areas of the parks including: o Playing fields o Around playgrounds and safety zones o Picnic areas o Shade structures • Preservation of the overarching landscape design, features, and aesthetics • Preservation of property values • Avoiding changes that are irreversible or permanent wherever possible • Preserve as many trees as possible • Use the existing mature landscape material as an anchor element for any changes In LMD 2, 9,691 square feet of turf was removed (Victoria Park Lane east of Day Creek) and 17,632 square feet of turf was removed in LMD 4 (corner of Base Line and Haven, east along the south parkway to Spruce) 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. • As part of the Citywide Concrete Repair project, several locations in LMD 2 and LMD 4 parks had sidewalk and concrete panels replaced, including sections of the Skate Park at Spruce Park. • Several smaller projects were also completed by the Parks Section during Fiscal Year 2016/17 such as: continuing to replace rubberized playground surfacing at Central Park and Victoria Arbors Park, replacing several pieces of equipment, and rebidding the purchase of Calsense parts and other park and landscape supplies. 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 a two-year term. As development within the City 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 7,500 residents, developers, and business owners at the counter in Fiscal Year 2016/17. 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: Staff is reviewing best practices from other jurisdictions and soliciting feedback from stakeholders to determine how best to implement mixed use/TOD development standards into the Development Code. An identified Council Goal, staff has developed a set of new Development Code standards to guide new Mixed Use/Transit Oriented Development in the City. Phase 2 of the project will include identifying Mixed Use densities and creating Overlay Zones. Additionally, staff will review areas of industrial zoning along arterials for possible rezoning to allow more commercial and office uses. Staff have been working in conjunction with the community and outside consultants on a Central Park Master Plan Update process in recent months. Since 1987 there have been several versions of the vision of Central Park. An update to the latest version is needed in order to better meet the residents' needs; and create a plan for smaller buildable segments that can be built over time, when funding is available. Community input and engagement has been a part of the various versions of the Plan; this participation is an important part of creating that vision. At this time, neither capital nor maintenance funds are available for the completion of Central Park. This process is to update the existing Central Park Master Plan to create a vision for a fiscally and environmentally responsible park space. Revisioning buildable segments of space and amenities in 3 - 10 acre xii improvements provides greater opportunities for developing as we continue to search for potential grants, donations and other funding sources. • A mixed-use project has been entitled consisting of 182 multi -family residential units, including 5 live -work units on Foothill Boulevard and Hermosa Avenue. This project is currently under construction. • 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. This project is currently under construction. • The 28.4 -acre property at the corner of Day Creek Boulevard and Base Line Road has been entitled with a mixed-use project consisting of 380 residential units (329 townhomes and 51 single-family dwelling units), two restaurants and a higher end boutique hotel. Construction is expected to begin in 2018. • 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. • Staff is part of a multi -department task force to inspect massage establishments throughout the City to ensure compliance with all City codes. Working together with an interdepartmental team, we have inspected over 30 locations and 17 locations have been closed in the last year. City Council has approved a permanent ordinance to reassert local control and implement appropriate regulations over massage uses. • Meeting an identified City Council and General Plan goal, staff developed an ordinance to require the installation and maintenance of public art in larger new developments. Working with developer stakeholders, we developed a program that provides flexibility for developers while strengthening our depth and breadth of art available for the public to enjoy. • 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. Four separate code updates were approved by the City Council this year. These code updates included updating land uses for recreational shooting complexes, updating floor area ratios for mixed use projects, establishing regulations for massage establishments, and developing a public art program. • The continued implementation of the Community Development Block Grant (CDBG) program is facilitated by Planning Department staff. The City received $817,218 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. • 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. The gas station has become a 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 Codes including building, fire, Title 24 Accessibility, energy, plumbing, mechanical, and electrical codes. Building and Safety continues to expand the use of the Accela permit software for on-line permit processing of fee payments and inspection requests, and enabling customers to access permit and inspection information 24 hours a day, 7 days a week. The Department conducted over 12,718 inspections, responded to over 380 complaints and investigations, and issued over 4,115 permits during the 2016/17 fiscal year. Administration The Administration Section continues to improve communication with customers by enhancing public relations through website development and revising and updating forms and handouts. All telephone calls for Building and Safety Services as well as Community Improvement are received in this section. An additional service provided by this section 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 property including work inside mobile home parks. In addition, this unit works with the Community Improvement Division to abate properties that are vacant or have non-compliant building issues. Plan Check and Permit The Plan Check and Permit Sections continue to provide permit services for thousands of projects annually. The Accela permit software has enhanced the process tremendously. More than 8,620 applicants have registered since 2013 for the use of the 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 maintain compliance with the current fire codes while minimizing the potential disruption to their business. Gradina 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. xiv Communitv Imbrovement The emphasis in Community Improvement has remained on resolving long-term cases effectively and in a cost-efficient manner by improving processes and utilizing new tools to enhance the community. Staffing has been stable through the year to allow the program to grow into the expectation of providing more than just enforcement services by educating and connecting community members to available services. Community events have been more actively attended by staff members to provide the opportunity for informal, positive relationships to be established with citizens. One very successful program has been to rehabilitate vacant, neglected properties under the authority of the Health and Safety Code. This code allows the City to request the appointment of a receiver by the San Bernardino County Superior Court over a property when that property has significant violations of the Health and Safety Code. The receiver can rehabilitate the property, utilizing the value of the property to recover the costs of the rehabilitation, the associated legal fees, and the costs incurred by the City in enforcement action to gain compliance. The end result is more stable neighborhoods with owner occupancy, sustained property values, and a safer community. Training and education of staff members have received new focus with the passing of AB 2228 which established statewide training standards and professional certification for code enforcement professionals. Long-term officers were able to take a certification exam to receive the credential. Newer officers will be required to participate in 120 hours of instruction with qualifying exams scores to receive the certificate. Additionally, there is continuing education required to maintain the credential. The recovery of costs has been increased this year on several aspects. Through a partnership with the Finance Department, DataTicket is a new vendor providing processing for Administrative Citations, providing a more comprehensive service in making notifications to violators and obtaining remittance for fines. City prosecution services are being provided by a different firm that is more accurate in calculating staff and legal costs so the recovery can be made through the court disposition. Procedures have been established to file title documents for properties where City funds have been expended enabling the City to recover those costs through property tax assessment. Communitv 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. The Senior Center offers a variety of classes, services, special programs, special events as well as spaces and opportunities for friends to gather. Two of those spaces are the Gift Shop and adjacent Snack Bar that have become the heart of the Senior Center where seniors mingle, socialize, shop, snack, and play games; where bonds of friendship are strengthened and new friends are made. From the Gift Shop and Snack Bar, to the daily Senior Nutrition program, the Silver Fox Express Transportation Program and a variety of recreational and health and wellness programs, the Senior Center is a vital resource in Rancho Cucamonga all year long. This is all made possible with the support from hundreds of volunteers, numerous partners, and the 16 -member Senior Advisory Committee. 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 xv much more. The Central Park meeting rooms and halls are very 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, professional associations, community groups, business groups, and more! Cultural and Performing Arts The Victoria Gardens Cultural Center, which includes the Lewis Family Playhouse, celebrated its 10th Anniversary with a community celebration on August 20, 2016. On September 16th the Playhouse kicked off their 11th season with Penn & Teller, the Playhouse's biggest name act to date, which sold out in only two weeks after going on sale to the public. The season continued with sell outs with such notable artists as Aaron Neville, Wilson Phillips, the Drifters, Martha Davis and the Motels, Golden Dragon Acrobats, Ozomatli, Capitol Steps, Lee Ritenour, and Colin Mochrie and Brad Sherwood. The City's own professional MainStreet Theatre Company presented their highest attended season with the classic stories of Stuart Little, The Secret Garden, and Goldilocks and the Three Bears. Over 34,000 children and adults attended MainStreet performances, including over 27,000 students and teachers filling up the 57 school performances offered. Broadway at the Gardens presented Stephen Sondheim's Into the Woods garnering strong public acclaim, and Community Theatre presented The Music Man as their summer family musical, and the classic Pride and Prejudice to thrilled and devoted Jane Austen fans. In all, nearly 48,000 people enjoyed a performance at the Playhouse. Additionally, the Cultural Center hosted many popular public events including a Bridal Expo, a Secret Garden Tea Party, the annual State of the City Address, and a multitude of private events from weddings to retirement banquets. The Cultural Center remains a vibrant and active community gathering place for residents and visitors of Rancho Cucamonga. Special Events Last year, over 25,000 community members attended the Department's major community -wide special events. These special events included: 4th of July Fireworks Spectacular, Summer Movies and Concerts in the Park, 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 and Crafts. Classes were offered at City facilities and local studios. Over 5,000 participants registered for 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 In Fall of 2016, the City established its very own local program through Special Olympics: Southern California, the IncredAbles. The City offered soccer in the fall and bocce ball in the spring. In 2016, the fall soccer session ended with seven IncredABLES athletes. This year, a full team of 14 athletes participated in the Special Olympics Regional Games at Big League Dreams in Perris. The IncredAbles team took the bronze medal in their bracket with two of our athletes taking home gold and silver medals in the Individual Skills competition. The IncredABLES program is slowly expanding with more event opportunities and additional classes being added to our program. This year, three new classes were offered xvi to the City's special needs community: Polynesian Dance, Baking, and Yoga. The Special Needs Partnership Coalition also hosted the first Special Needs Resource Fair, with 20 vendors participating and approximately 250 community members participating. Sports The Sports Division provides a wide variety of sports activities for Pee Wee, Youth, and Adults within the community and surrounding areas. Over 1,800 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. During the last fiscal year, the Sports Division was actively working on the transition plan for the movement to the new RC Sports Center that will be located at the Epicenter Sports Complex. Youth and Family Lions East Community Center, Goldy Lewis Center, and the Frost Early Education Center are hosts to the Playschool program from August through May. This year's program changes included the addition of a four-day 3's Plus class. We had a total of 528 registered participants this school year. Lions West Community Center houses the RC TeenWorks program, formally known as TRAC. There have been some exciting changes, we are moving away from the traditional "drop-in" program and gearing it towards a more structured environment where teens focus on STEM activities, sports, and art and crafts. In addition, we launched RC TeenWorks Volunteer Coalition and Internship program where teens learn the value of community involvement and gain skills to assist them with entering the workforce! This year we volunteered at the Ronald McDonald house, beach clean ups, and Camp Kahuna, just to name a few. This year our 77 volunteers logged a total of 3,383 hours! Over the summer, Lions Center East and West hosted 1,690 youth ages 2 — 16 at our summer camps. RC Family Resource Center The RC Family Resource Center, a hub for non-profit service organizations, hosts over 45 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. The RC Family Resource Center, with the help of their partners, assists more than 1,000 residents on a monthly basis. Furthermore, 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 2,500 attendees each year. These events are geared towards strengthening the family unit by creating an enjoyable experience for all family members. Registration The Registration Division is the main hub for Community Service's customer intake. Last fiscal year, the Division processed approximately 40,000 program/class registrations, approximately 1,228 park reservations, and handled approximately $3.6 million at multiple sites throughout the City of Rancho Cucamonga. In addition, we maintained payments made via InstantRC (over $800,000 in transactions) and authorized 217 scholarships equaling $25,606 to qualifying residents. xvii Park Ranger Program The Park Ranger program continues to enhance Rancho Cucamonga's public safety initiatives by protecting and preserving parklands and open space, enforcing regulations, providing community education, and promoting parks and open spaces as a vital amenity. Last fiscal year, the two Park Rangers made contact with patrons 2,272 times, which includes dispatch calls for a variety of low level infractions and educating Park users. Park Development Projects completed as of June 30, 2017 include: • Los Amigos Park Projects awarded and/or started in Fiscal Year 2016/17 include: • Central Park Trailhead Improvements Architectural Design Services • Central Park Phase II Design Study • Etiwanda Creek Park Phase II Master Plan • Victoria Gardens Cultural Center Courtyard Architectural/Redesign Services • RC Sports Center Relocation 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. This last fiscal year, over 60,000 hours of volunteer services were 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 Fiscal Year 2016/17, the Police Department had 137 sworn officers, 42 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 (MET), Solution Oriented Policing Team (S.O.P.), Traffic Division, Detective Bureau, Retail Theft Team (Victoria Gardens), CPS/APS Follow Up Team, and a Public Information Officer. The Department continues to strive to improve public safety while finding efficiencies through technology and innovation. The Department's continued work and expansion with the Public Safety Video Network and Automated License Plate Reader technology deployment throughout the city is an ongoing effort for current and future improved law enforcement services. The Solution Oriented Policing Unit will carry forward to improve quality of life issues with transients, bar compliance, Active Shooter Training, and school/business threat assessments. While engaging in their duties, S.O.P. deputies work with Community xviii Improvement personnel and the State's Department of Alcohol Beverage Control to ensure alcohol serving businesses are compliant with the law. As recent legislative changes in the incarceration system continue to create policing challenges, the Multiple Enforcement Team, Solution Oriented Policing Unit, and the Detective Bureau will continue to join forces to collaboratively prevent and deter criminal activity in the city. Automated License Plate Readers (ALPRs) ALPR uses video cameras in combination with infrared illuminators that are capable of capturing the image of the front or the rear of a vehicle that passes through its field of vision. The cameras are affixed to both patrol units and light poles on the south and north ends of the city. Currently twelve (12) patrol units are outfitted with the cameras as well as twelve (12) separate intersections. All captured plates are automatically run through the law enforcement database and if the plate captured is a vehicle of interest, shortly after the read, both dispatch and on duty Deputies are notified immediately. The information as to the type of investigation is relayed and special instructions are given, if necessary. The City's continued investment in ALPR technology will allow the Department to continue delivering exceptional public safety services by locating and arresting criminals who would have previously travelled through our community undetected. Public Safetv Video Network (PSVN In conjunction with ALPRs, the Public Safety Video Network continues to expand with video cameras installed at seventy-two (72) locations throughout the city. The Victoria Gardens Mall, Metrolink Station, Police Station, Epicenter, Archibald Library, Central Park, Los Amigos Park, and City Hall are areas which have been equipped with the system. As infrastructure is finalized throughout the city, cameras will continue to be installed in "areas of interest", such as additional parks, intersections, and areas of congregation. The Police Department's Technical Management Team and the City's Department of Innovation and Technology personnel are currently working on a plan for future ALPR/PSVN installation projects. Expansion of Solution Oriented Policina Team The Solution Oriented Policing (S.O.P.) Team's key tasks involve investigating sex trade crimes, conducting Active Shooter Training, and investigating/assisting with quality of life issues with the homeless. Through S.O.P., the Police Department works hand in hand with various City departments to ensure business compliance with local regulations. Threat assessments for local businesses and schools are a priority that the team engages in to "harden the target" and elevate the likelihood citizens will survive a mass casualty event. The S.O.P. Unit also conducts Surviving an Active Shooter Training for citizens, students, and school staff to better equip them with the knowledge on how to react during an active shooter threat. Community Engagement The Rancho Cucamonga Police Department conducts numerous community based meetings to improve the relationship it has with its community partners while simultaneously elevating their understanding of crime trends. A monthly Citizen Advisory Community Meeting is hosted by the Department, Coffee with a Cop is held at different locations, and our National Night Out and Open House are important department engagements. The Police Department also participates in city neighborhood watch programs and health and safety fairs for local businesses and faith based organizations. xix Fire District 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 City's Police Department, the District has been a vital partner in public safety in the community since the formation of the Alta Loma Fire District in 1931. The District continues this tradition of service by constantly reviewing and refining its administrative and operational procedures and policies in order to ensure its resources are maximized in this effort. During the Fiscal Year 2016/17, District staff accomplished the following to maintain and improve existing services levels in accordance with Council approved goals: • Began construction of the Fire All -Risk Training Center construction project • Hired an Architect and Construction Management firm to begin design to rebuild the San Bernardino Road Fire Station (172) at a new location • Awarded a contract to upgrade the District -wide Station Alerting System • Reconfigured the Emergency Operations Center for better functionality • Maintained Community Facility District (CFD) fees at same level as the prior fiscal year • Continued waiving Fire Inspection Fees Library Services The Library Services Department underwent exciting changes and new beginnings in Fiscal Year 2016/17. In the past fiscal year, the Library checked out almost 1 million books, DVDs, CDs, eBooks, and magazines, and issued over 11,000 new library cards. Over 73,000 people used a Library computer, and over 40,000 children attended a library program. Currently, over 200,000 borrowers own a Rancho Cucamonga library card and enjoy a collection of over 300,000 titles and free access to over 70 public computers. xx Additional Library highlights include: Children's and Teen Services • Over 40,000 youngsters came to our libraries to enjoy the popular storytime programs. With twenty- three storytimes each week between the Library's two locations, the baby, toddler, pre-school, school - aged and teen programs offer something for children of every age. • The Summer Reading Program (SRP) had a 10% increase in participation from last year, with nearly 4,400 children and teens taking part in the program. The SRP is crucial to helping youngsters maintain their reading skills during the summer months. • The popular "Kidsmobile" bookmobile provides service to many of the city's elementary schools. The distinctly -designed bookmobile visits children at their school sites. The "Kidsmobile" checked out over 65,000 items to children during this past fiscal year. • The Library completed three STEAM related grants totaling $81,000 from the California State Library, Southern California Edison, and SoCal Gas. This afforded staff the opportunity to participate in Second Story programming and nurtured a team oriented environment. • Children's Services partnered with local businesses to provide incentives for children completing the annual Summer Reading Program with an estimated value of $55,000. Incentives were provided by: Baker's, Ben & Jerry's, Benihana, Blaze Pizza, Buca de Beppo, the Clippers, Chick-fil-A, IHOP, Lazy Dog, Lego Land, Red Dragon Karate, Round Table Pizza, and Rubio's. Additionally, free Legoland child entry passes were provided for an estimated value of almost $400,000. Senior Services The Library's "Housecalls" outreach program delivers library materials via volunteers and staff to community members who cannot come to the library. This service allowed homebound Rancho Cucamonga residents to checkout nearly 1,500 items this fiscal year. Rancho Cucamonga Library volunteers and staff deliver materials ranging from books to DVDs to recorded books on CD. Outreach Services The Library had many outreach visits in Fiscal Year 2016/17, including STEM programs at Los Amigos Elementary school, RC Fire Open House, National Night Out, and RC Family Resource Center's Spooktacular event. These outreach efforts are in addition to the daily bookmobile stops. Information and Virtual Library Services • Between the Adult and Children's Information Service desks and our Virtual Library, over 160,000 information questions were answered during the past fiscal year. • Over 73,000 library customers used the Library's 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 1,400 children, teens and adults took advantage of free, hands-on computer classes. In the upcoming year, these numbers may increase with the Library's recently upgraded broadband speed. • In Fiscal Year 2016/17 the Library collaborated with DoIT, to successfully integrate the CENIC 10 GB high-speed fiber optic network for use on the Library's public Wi-Fi. • Passport services were offered 7 days a week (85 hours total) between both library locations. In Fiscal Year 2016/17, staff fielded more than 9,200 passport inquiries and processed nearly 5,600 applications. xxi • The Library installed new self -check units and security gates at both locations. The new gates accurately track all incoming foot traffic and feature real-time security alerts which notify staff of specific items that may have triggered the alarm. New self -check units feature the ability to check out and renew items, as well as the ability to check patron accounts for fines and current due dates. Literacy Services • Over 40 active literacy tutor and learner pairs call the Library their home as they work together 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, as well as corporate and private donations. • The "Back to Basics" Children's Literacy Program served 82 children, 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, the Library offered 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 $150,000 for the Library in Fiscal Year 2016/17. Library Foundation The Library Foundation raised approximately $11,000 in ticket sales from the annual Tour de Fork event at Victoria Gardens. The Library Foundation also held three major Second Story fundraising events to cultivate potential major donors and partnerships. 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: 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. Communitv Information Proeram 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: • Implementation and launch of GovDelivery as the City's primary email distribution system for its electronic newsletters • Enhanced State of the City Address • 50% increase of social media followers in 12 -month period • Measure Q outreach and public education efforts recognized by California Association of Public Information Officials (CAPIO) as an award winning social media campaign • Increased media engagement and outreach through video • Department staff training on iMovie application 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 Ash Center for Democratic Governance and Innovation at the John F. Kennedy School of Government, Harvard University, recognized Healthy RC as part of the 2017 Bright Ideas in Government initiative. Healthy RC was one of only 60 programs nationally to receive this designation for its model of bringing together local government and community members to address and improve population health and long-term health outcomes. • The City teamed up with Grid Alternatives, a certified non-profit organization that brings together community partners, volunteers and job trainees, to implement solar power and energy efficiency for low-income families. This organization provides free solar panel installation to qualifying homeowners in Rancho Cucamonga -- providing energy cost savings, valuable hands-on experience, and a source of clean, local energy that benefits us all. At least seven homeowners have benefited from this project — and the CMO staff went out and volunteered with one of the installations! • The Healthy RC Evaluation Plan, developed in partnership with community members and Healthy RC's community stakeholders, was adopted in March 2017 and builds on the foundation for community health improvement that was laid by the Healthy RC Strategic Plan. Highlights of the Evaluation Plan include: • 13% reduction in childhood obesity rates • 7-12% reduction in rates of overweight students • 20% reduction in heart disease rates • 14% reduction in diabetes rates • 21 % reduction in cancer rates The Sustainable Community Action Plan was adopted by the City Council in April 2017. Soon after, staff began efforts to develop metrics for the Plan. The community -driven Sustainable Community Action Plan identifies and enhances opportunities for a cleaner and greener Rancho Cucamonga. The Sustainable Community Action Plan serves as a long-term vision for how Rancho Cucamonga can be more environmentally friendly and provide guidance for residents, City staff, and decision makers in the community on how to achieve future sustainability goals. In April 2017, the National League of Cities selected the City of Rancho Cucamonga as one of six cities across the country to participate in the Mayors' Institute on Advancing Education and Health through a Community Schools Strategy. Healthy RC was recognized for its work in partnership with the Cucamonga School District and various community partners to help transform and encourage schools as places where community -building happens, improving equitable access and availability of resources to all residents, and improving quality of life for all who live, learn, work, and play in the city. • Healthy RC hosted a series of Mental Health Symposiums in 2017 as part of the continued efforts to start, and continue, the conversation around mental health and reducing the stigma in our community. The Mental Health Symposiums were created in response to the community's feedback from the 2014 Strategic Plan where mental health was identified as one of the top eight community health priorities for Healthy RC. • Healthy RC launched the Compassionate Communities initiative to provide an actionable way for all people who live, work, and play in Rancho Cucamonga to contribute to creating a culture of compassion in our community. Efforts include creating monthly activities, Kindness Cards, and social media challenges that promote and encourage compassion as an essential ingredient in building and maintaining a thriving, healthy, and resilient community. • For the seventh 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 258 communities across the country and one of 31 California cities named 2017 Playful City USA honorees. • Prepared a Request for Proposal for the SolarRC Expansion Project 2.0 which encompassed five City/Fire District facilities including City Hall East Lot, Corporate Yard, Red Hill Park, Sports Center Gym, and the Fire Training Academy. Leizislative 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 xxiv 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 2016/17 Legislative Session, the City tracked 27 state and federal bills and sent several letters to state and federal legislators and the Governor advocating our position on certain legislation and issues. Significant victories include the defeat of SB 649, which would preempt local control over wireless facilities, and the passage of SB 1, which provides critical funding for the maintenance and repair of our streets and highways. 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 Council of Governments (SBCOG), 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 Fiscal Year 2016/17, Mayor Dennis Michael served as the Past President of the League of California Cities. During this period, Mayor Pro Tem Spagnolo also served as 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 help residents in person, over the phone, and via email through the City's General Information email account. 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 as well as Community and Cultural Services. This project is in the process of being expanded to include performance data for all areas of City operations including community development, governance and finance, and health and sustainability. During Fiscal Year 2016/17, Rancho Cucamonga joined the What Works Cities Initiative and received technical assistance from world-class experts to build skill sets and processes to utilize data to address local issues. This project focused on developing a process for collecting and analyzing data to help measure performance and aid in decision-making for maintenance and operations in the City's parks, with a goal to expand these best practices to other City services. 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 hearings for the newspaper, receives and opens bids for City projects, and maintains the Municipal Code book. xxv In 2016, the office effectively administered and coordinated the November 8, 2016 General Municipal Election for the election of two (2) Members of the City Council, one (1) City Clerk and one (1) City Treasurer and Measure "Q" relating to electing members of the City Council by the voters in four Council Districts with an at large Mayor, beginning in 2018 and 2020. In a continued effort to streamline processes and provide excellent customer service, the Office of the City Clerk initiated a Request for Proposal process for a Public Records Request Tracking System Application and an Agenda Automation System Application during Fiscal Year 2016/17. 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. The Division has also been working continuously on improving accessibility to public documents through LaserFiche, an electronic online portal, and has made minutes readily available through LaserFiche web access. Animal Care and Services The Animal Care and Services Department is responsible for more than 5,000 homeless pets each year. Their core responsibilities include caring for homeless pets, adoptions, community outreach, and public safety. 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 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 animal 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. 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. In Fiscal Year 2016/17, a Pet Cadet volunteer program was initiated to expand opportunities for volunteers between the ages of 12 and 17 to volunteer with their parent or guardian. Increasina Adoptions 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 the 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. In Fiscal Year 2016/17, the Kitten Nursery was a recipient of a League of California Cities Helen Putnam Award in the category of Enhancing Public Trust, Ethics, and Community Involvement. xxvi Medical Services In Fiscal Year 2016/17, a new digital x-ray machine was purchased allowing the medical division to expand the number of medical procedures diagnosed and treated in-house. The division also continued its partnership with Western University College of Veterinary Medicine by hosting and mentoring third and fourth year students. This win-win partnership offers veterinary students hands on experience with shelter medicine which expands their technical and case management skills and gives Animal Services additional labor to offset the work load of caring for the animals. Animal Services also partnered with Western University to host several free and low-cost public spay and neuter clinics throughout the community. Animal Care Foundation Officially formed in June of 2016, the Animal Care Foundation was established to enhance fundraising opportunities to support the Animal Center's programs and services. In Fiscal Year 2016/17, the Animal Care Foundation hosted several fundraising including a Putt for Paws golf tournament, Furry Friends Flea Market, and a holiday boutique. Funds and in-kind donations collected were used to support the Center's neonatal Kitten Nursery, low cost spay and neuter opportunities, transporting pets to rescue organizations, and specialized medical procedures. Extreme Makeover A large focus of Fiscal Year 2016/17 was remodeling the aging Animal Center. The remodel updated the kennel areas by replacing the chain length kennels with new stainless steel kennels and added sound acoustical panels to reduce the noise and stress levels for the animals. New paint, flooring, and LED lights were installed throughout the Center to give it an updated modern feel that is inviting and welcoming for Animal Services guests to help improve their overall experience. Program Growth 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 the 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 15 of the Center's small dogs to them for adoption. Administrative Services Grou The Departments and Divisions of the Administrative Services Group are unique in comparison to other City departments. While line departments typically provide services only to the public, the Administrative Services Group provides services and support primarily to internal staff (including the City Council, the City Manager, the various City departments, and employees) with some service areas crossing over into the public arena. The group's major service areas are: Administration, Finance, Treasury Management, Human Resources, Risk Management, Procurement, Business Licensing, Special Districts 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 2016/17 fiscal year. A summary of each of these projects by division follows. xxvii 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 also worked in partnership with the Police Department to establish a Tow Service Agreement with each tow carrier providing vehicle tow services for the City. Participating tow carriers pay fees to the City as a condition of participation in the City's tow rotation. This additional revenue will allow the City to invest in additional public safety programs and personnel for the benefit of all residents and businesses and to recoup administrative costs related to the program. Department of Innovation and Technology (DoIT) The Department of Innovation and Technology (DoIT) is 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 being recognized in the top -ten cities for our population range in the 2016 Digital Cities Survey. Accomplishments for the Department include: • Completion of the $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 • Completion of the dedicated ultra -highspeed data network for the City's Library System, providing both the Archibald and Biane Libraries with 10 Gbps public internet service using the California Research and Education Network (CaIREN) • Completion of the voice-over-internet-protocol (VoIP) digital telephone system implementation • Implementation of Microsoft Government Enterprise Licensing for Office 365, providing enhanced security, access, and resiliency by moving the City's exchange environment to the Microsoft Azure cloud • Participation in the Bloomberg What Works Cities Initiative to develop performance metrics and data driven decision making tools for the City • Development of the revised RC2Go mobile application based on Esri technology • Hosting of the 2016 GIS day celebration at Central Park for over 500 junior high and high school students from around the City 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, special districts administration, and treasury management. xxviii The Finance Department applied for and received its 29th 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 4' consecutive GFOA Distinguished Budget Presentation Award. In the prior fiscal year, 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 with the City's financial software provider to implement Socrata's Open Budget Dashboard. The first phase of the project has been completed with the mapping of data from the City's financial system to Socrata's platform. Staff are currently in the process of fine-tuning the appearance of the dashboard for unveiling in the next month. During Fiscal Year 2016/17, the Accounting and Financial Reporting Division worked in conjunction with the Police Department and the Community Improvement Division to transition to a new service provider for processing the City's Parking Citations and Administrative Citations. The Animal Services Department and Business Licensing Division will go live with the new provider in the next few months for their Administrative Citations. The Business Licensing Division ensures compliance with City codes as they relate to business licenses, as well as transient occupancy (TOT) and admission taxes. During Fiscal Year 2016/17 staff processed approximately 11,422 business license applications (8,453 renewals and 2,969 new filings), inspected 2,023 businesses, and collected revenues totaling $2,755,839. During Fiscal Year 2016/17, the Division facilitated the first ever TOT audit for the City's hotels for a three-year period (April 2013 through March 2016). The majority of the City's hotels were in compliance with the City's TOT ordinance; however, certain reporting deficiencies were noted resulting in the recovery of approximately $18,400 in revenues to the City. 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 Fiscal Year 2016/17, Special Districts staff 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 streamline the Annual Engineer's Reports for City Council approval; and placed over $27.8 million in special taxes and assessments on the 2017/18 Tax Roll for the City's 35 special districts. The Division also assisted the Fire District in placing weed abatement tax liens on the 2017/18 Tax Roll in the total amount of $24,235. 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 • Continued oversight of reporting and compliance with the Affordable Health Care Act • Initiated new programs to enhance the "Employee Experience" • Improved the understanding of Worker's Compensation process and procedures with Fire District employees to make sure employees understand their rights and responsibilities 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. Procurement Division The Procurement 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 2017, the Procurement Division submitted an application for the 2017 Achievement of Excellence in Procurement (AEP) award and received the award. Each year the criteria changes to keep up with innovations and best practices in public procurement. The Procurement Division is one of only forty-five (45) agencies in California and one of only sixty-eight (68) cities in the United States and Canada to receive the award in 2017. This is the ninth consecutive year that the Procurement Division has been the recipient of the AEP award. • Efficiently disposed of surplus City assets through online bidding applications to generate $219,256 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, 2016. 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-nine 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. xxx 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. Respectfully submitted, John R. Gillison Tamara L. Layne City Manager Finance Director CITY OF RANCHO CUCAMONGA CITY OFFICIALS JUNE 30, 2017 City Council Name Term Expires L. Dennis Michael Mayor 2018 Lynne Kennedy Mayor Pro -Tem 2020 William J. Alexander Council Member 2018 Sam Spagnolo Council Member 2020 Diane Williams Council Member 2018 Administration and Department Heads City Manager John R. Gillison Deputy City Manager/Administrative Services Lori Sassoon Deputy City Manager/Cultural Services Elisa Cox 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 Vacant Community Services Director Jennifer Hunt -Gracia Engineering Services Director/City Engineer Jason Welday Finance Director Tamara L. Layne Fire Chief Mike Costello Human Resources Director Robert Neiuber Library Director Julie Sowles Police Chief Danielle Boldt Public Works Services Director Bill Wittkopf CITY OF RANCHO CUCAMONGA ORGANIZATION CHART Citizens of Rancho Cucamonga City Clerk I I City Council I I City Treasurer City Attornev City Manager Administrative Civic and Police Economic and Services Cultural Services Department Community Admin/Procurement Development Fire Community District Finance Services Animal Care Human Library and Services Resources Services Community Innovation and I Records Improvement Technology Management Building andI I Engineering Planning I I I I Public Works Safety Services Services 11� 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, 2016 *10r 4 0.: PA*. - 0 Executive Director/CEO LS000L• 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 City of Rancho Cucamonga, California, (the City) as of and for the year ended June 30, 2017, 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 City'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 LSU9::: 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, 2017, 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, the schedule of plan contributions for the cost sharing multiple employer plan, schedule of changes in net pension liability and related ratios for PARS retirement enhancement plan and schedule of plan contributions PARS retirement enhancement 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 LSU9::: 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 December 15, 2017 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 solely describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Brea, California December 15, 2017 3 THIS PAGE INTENTIONALLY LEFT BLANK City of Rancho Cucamonga Management's Discussion and Analysis Year Ended June 30, 2017 RANCHO CUCAMONGA As management of the City of Rancho Cucamonga (City), we provide for the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2017. 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 $1,271,797,361 (net position). • The City's beginning net position of $1,222,615,247 has been increased by $5,584,468 as a result of restatements for the governmental activities. The General Fund and the Fire District Fund were restated for $1,774,000 and $3,810,468, respectively. 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 $1,228,199,715. • The City's total net position increased by $43,597,646, excluding the restatements for the governmental activities noted above, from current year activities. The change reflects increases of $37,365,327 in governmental activities and $6,232,319 in business -type activities. • At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $458,314,267, an increase of $9,844,371 from the prior year. This was the result of restatements to beginning fund balances of the General Fund and Fire District Fund for a total amount of $5,584,468 and an increase of $4,259,903 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 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. 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 5 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, Rancho Cucamonga Enterprise Geographic Information Systems (REGIS) Connect, and Fiber Optic Network. 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 25 through 27 of this report Fund Financial Statements The fund financial statements provide a more detailed look at the City's most significant activities. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. The fund financial statements provide detailed information about the most significant funds and other funds. Some funds are required by state law and by bond covenants. In addition, in order to meet legal responsibilities for using certain taxes, grants, and other resources, prudent fiscal management requires the establishment of other funds to help control and manage money. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. By contrast to the government -wide financial statements, the governmental fund financial statements, a part of the fund financial statements, use the modified accrual basis of accounting which considers money available when it is collectible within the current period or soon enough thereafter (60 days after the end of the current fiscal period except for sales tax revenues which is 90 days) to pay liabilities of the current period. Expenses are recorded when a liability is incurred. Debt service, claims and judgments, and accrued employee leave benefits are not recorded as liabilities, they are expensed at the time a payment is due. Note 1.c. of the notes to the financial statements more fully describes each basis of accounting. 0 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 33 and 36 of this report). The City maintains 72 individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General 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 69 governmental funds are combined into a single, aggregated presentation. The basic governmental funds financial statements can be found on pages 28 through 35 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 116 through 151 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 97 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, REGIS Connect, and Fiber Optic Network 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, REGIS Connect, and Fiber Optic Network operations. The Sports Complex and RCMU are considered to be major funds of the City while REGIS Connect and Fiber Optic Network are reported as non -major funds. 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 214 through 216 in this report. The basic proprietary fund financial statements can be found on pages 37 through 39 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held in a trustee or agency capacity for others and, therefore, cannot be used to support the government's own programs. Activities reported in this category include special deposits, assessment districts, and the Successor Agency of the Former Redevelopment Agency. As of February 1, 2012, the City elected to serve as the Successor Agency of its former Redevelopment Agency (Successor Agency) which was dissolved by state law (see Note 14 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 7 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 and have no measurement focus. The City's fiduciary activities are reported in a separate statement of fiduciary net position on page 40 of this report. Individual fund data for each agency fund is provided in the form of combining statements found on pages 220 through 230 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 43 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, 2017, total assets and deferred outflows of resources (of which 60% represents net capital assets of the City, including infrastructure) exceed total liabilities and deferred inflows of resources by $1,271,797,361. The table below is a condensed version of the City's statement of net position for the fiscal year ended June 30, 2017, with comparative data from the previous year. Net Position June 30, 2017 (In Thousands) Deferred inflows related to pension Governmental Business -Type 263 334 6,614 Activities Total deferred inflow Activities 9,970 Total 334 6,614 2017 2016 2017 2016 2017 2016 Current and other assets $ 516,872 $ 520,133 $ 16,377 $ 13,238 $ 533,249 $ 533,371 Net pension asset - 4,076 - 175 - 4,251 Capital assets, net 792,335 739,590 32,434 28,183 824,769 767,773 Total assets 1,309,207 1,263,799 48,811 41,596 1,358,018 1,305,395 Deferred outflows related to pension 25,303 14,643 809 265 26,112 14,908 Total deferred outlow 25,303 14,643 809 265 26,112 14,908 Current and other liabilities 14,041 13,975 1,959 1,280 16,000 15,255 Long-term net pension liabilities 71,140 54,862 2,120 1,202 73,260 56,064 Long-term obligations outstanding 16,459 16,065 - - 16,459 16,065 Total liabilities 101,640 84,902 4,079 2,482 105,719 87,384 Deferred inflows related to pension 6,351 9,970 263 334 6,614 10,304 Total deferred inflow 6,351 9,970 263 334 6,614 10,304 Net position: Net investment in capital assets 791,849 738,556 32,434 28,183 824,283 766,739 Restricted 376,102 343,262 771 717 376,873 343,979 Unrestricted 58,568 101,752 12,073 10,145 70,641 111,897 Total Net position $ 1,226,519 $ 1,183,570 $ 45,278 $ 39,045 $ 1,271,797 $ 1,222,615 0 The chart below displays the proportionate sections of the City's net position. Net investment in capital assets 64.81% Unrestrict 5.55% Net Position June 30, 2017 $1,271,797,361 Restricted for Public benefit - Municipal Utility / 0.06% Restricted for Capital projects 4.11% Net Position: Net Investment in Capital Assets Restricted for: Community development projects Public safety Parks and Recreation Fire protection Engineering and public works Community services Capital projects Public benefit - Municipal Utility Unrestricted Total Net Position restricted for community evelopment projects 13.74% Restricted for Restricted for Engineering Community and public (In Thousands) works services 6.07% 0.50% 0.15% Net Position: Net Investment in Capital Assets Restricted for: Community development projects Public safety Parks and Recreation Fire protection Engineering and public works Community services Capital projects Public benefit - Municipal Utility Unrestricted Total Net Position restricted for community evelopment projects 13.74% Net Position Restricted June 30, 2017 for Public (In Thousands) safety Restricted Restricted for 0.15% for Fire Parks and Total Net protection Recreation Position 4.62% 0.39% 64.81% Net Position June 30, 2017 (In Thousands) Percent (%) of Governmental Business -Type Total Net Activities Activities Total Position $ 791,849 $ 32,434 $ 824,283 64.81% 174,718 - 174,718 13.74% 1,928 - 1,928 0.15% 4,936 - 4,936 0.39% 58,770 - 58,770 4.62% 77,201 - 77,201 6.07% 6,318 - 6,318 0.50% 52,231 - 52,231 4.11% - 771 771 0.06% 58,568 12,073 70,641 5.55% $ 1,226,519 $ 45,278 $ 1,271,797 100.00% The largest portion of the City's net position represents the City's net investment in capital assets in the amount of $824,283,598 ($791,849,229 for governmental activities and $32,434,369 for business -type activities), or approximately 65% of total net position. This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets. 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 $376,872,749 ($376,102,366 for governmental activities and $770,383 for business -type activities), or approximately 30% of total net position. This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments, and is dedicated to specific purposes such as community development projects, public safety, parks and recreation, fire protection, engineering and public works, community services, capital projects, and municipal utility for public benefit. 0 The City's unrestricted net position is $70,641,014 ($58,567,782 for governmental activities and $12,073,232 for business -type activities) or approximately 5% of total net position. This amount represents the portion of net position that does not meet the definition of "net investment in capital assets" or "restricted net position." The unrestricted net position may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the fiscal year, the City is able to report positive balances in all categories of net position for the government. Changes in Net Position During Fiscal Year 2016/17, total net position increased by $43,597,646 (net increases in governmental activities of $37,365,327 and in business -type activities of $6,232,319), or 4% from the prior fiscal year, before restatement. A restatement of beginning net position of $5,584,468 is reflected in the financial statements for the governmental activities as a result of clarifying technical guidance issued by the GASB subsequent to the issuance of the June 30, 2016 financial statements. 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 $1,358,018,076, an increase of $52,622,532 to the City's net position, or 4%, from the prior year amount of $1,305,395,544. The most significant changes are due to the increase in net capital assets and the decrease in net pension asset. • Net capital assets (e.g., infrastructure and other capital assets such as buildings, vehicles, furniture and fixtures, etc.) for the current year were $824,769,827. This resulted in an increase of $56,996,517, net of accumulated depreciation, to the government's net position, or 7.42°/x, from the prior year amount of $767,773,310. The total overall increase in net capital assets is due to the following: (1) increase in infrastructure in the amount of $5,114,333 in governmental activities and $265,346 in business -type activities, of which $2,224,237 are developer contributions of donated infrastructure to the City; (2) increase in construction -in -progress for various projects in the amount of $22,835,286 in governmental activities and $669,535 in business -type activities; (3) capital assets, net of accumulated depreciation, transferred from the Successor Agency in the amount of $38,257,705; (4) various purchases of equipment and vehicles in the governmental activities in the amount of $5,689,387; and (5) depreciation expense of $15,049,543 and $1,250,531 in governmental and business -type activities, respectively. • Pension related items for measuring the net pension asset, deferred outflows of resources, net pension liability, and deferred inflows of resources are determined on the same basis as they are reported by the CalPERS Financial Office and the PARS Retirement Enhancement Plan and have reflected the following: ❖ The prior year net pension asset of $4,251,000 was eliminated due to the discount rate change for the PARS Retirement Enhancement Plan from 6.25% to 5.75% to more accurately reflect the investment assumptions for the plan. As a result of the discount rate adjustment, a net pension liability of $218,000 is reported as of June 30, 2017. ❖ Deferred outflows related to pensions were $26,112,035. This resulted in an increase of $11,203,933, or 75.15%, from the prior year amount of $14,908,102. ❖ Long-term net pension liabilities were $73,260,016. This resulted in an increase of $17,195,396, or 30.67%, from the prior year amount of $56,064,620. Part of this increase is due to the change in discount rate for the PARS Retirement Enhancement Plan noted above. ❖ Deferred inflows related to pensions were $6,614,452. This resulted to a decrease of $3,689,683, or 35%, from the prior year amount of $10,304,135. 10 Below is the condensed statement of activities of the City's governmental and business -type operations for the year ended June 30, 2017. Changes in Net Position Year Ended June 30, 2017 (In Thousands) The condensed statement of activities above shows total net position increased by $43,597,646 before restatement. Governmental activities increased the City's net position by $37,365,327, accounting for approximately 86% of the total growth in net position, paired with an increase of $6,232,319 in the Business -Type activities' net position. The prior year's net position was restated to increase by $5,584,468 for Governmental activities, as explained earlier. 11 Governmental Business -Type Activities Activity Total 2017 2016 2017 2016 2017 2016 Revenues: Program Revenues: Charges for services $ 15,280 $ 13,643 $ 12,069 $ 11,588 $ 27,349 $ 25,231 Operating grants and contributions 5,327 14,464 - - 5,327 14,464 Capital grants and contributions 8,184 31,357 4,561 - 12,745 31,357 General Revenues: Taxes: Property taxes 79,857 78,064 - - 79,857 78,064 Admissions tax 5 4 128 196 133 200 Transient occupancy taxes 3,282 3,055 - - 3,282 3,055 Sales taxes 29,288 28,231 - 29,288 28,231 Franchise taxes 7,538 7,678 - 7,538 7,678 Intergovemmental - Motor vehicle in -lieu 85 70 - - 85 70 Use of money and property 5,735 7,645 256 375 5,991 8,020 Other 6,811 10,571 49 53 6,860 10,624 Total revenues 161,392 194,782 17,063 12,212 178,455 206,994 Expenses: General government 19,738 18,419 - - 19,738 18,419 Public safety - police 36,753 34,084 - 36,753 34,084 Public safety - fire protection 32,821 29,525 - 32,821 29,525 Public safety - animal center 3,414 2,697 - 3,414 2,697 Community development 16,799 14,653 - 16,799 14,653 Community services 16,438 13,852 - 16,438 13,852 Engineering and public works 35,927 36,298 - 35,927 36,298 Interest on long-term debt 172 806 - - 172 806 Sports Complex - - 2,981 2,663 2,981 2,663 Municipal Utility 7,905 8,436 7,905 8,436 REGIS Connect 167 65 167 65 Fiber Optic Network - - - - - - Total Expenses 162,062 150,334 11,053 11,164 173,115 161,498 Increase (decrease) in net position before transfers and extraordinary item (670) 44,448 6,010 1,048 5,340 45,496 Transfers (223) (534) 223 534 - - Special item 38,258 - - - 38,258 Increase (decrease) in net position 37,365 43,914 6,233 1,582 43,598 45,496 Net Position at Beginning of Year 1,183,570 1,137,382 39,045 37,463 1,222,615 1,174,845 Restatement of Net Position 5,584 2,274 - - 5,584 2,274 Net Position at End of Year _$_1,226,519 $ 1,183,570 $ 45,278 $ 39,045 $1,271,797 $ 1,222,615 The condensed statement of activities above shows total net position increased by $43,597,646 before restatement. Governmental activities increased the City's net position by $37,365,327, accounting for approximately 86% of the total growth in net position, paired with an increase of $6,232,319 in the Business -Type activities' net position. The prior year's net position was restated to increase by $5,584,468 for Governmental activities, as explained earlier. 11 Governmental Activities The following charts provide a snapshot of the City's governmental activities for Fiscal Year 2016/17, showing the distribution of revenues by source as well as a comparison of revenues versus expenses by program. Special Ite 19.16% Revenues By Source Governmental Activities Year Ended June 30, 2017 $199,650,592 3.41% Capital Contributions and Use of Money & PropertyGrants Contributions and Grants 2.87% 4.10% 2.67% $200,000 . —. $180,000 Public Safety- Community Community $160,000 Animal center Development Services $140,000 $191 $252 $3,749 $120,000 $3,414 $16,799 $16,438 Activities $100,000 and Transfers $80,000 $- $170,859 $199,650 $60,000 $172 $223 $162,285 $40,000 $20,000 General Public Safety - Government Police Revenues $4,992 $1,857 Expenses $19,738 $36,753 Revenue and Expense By Function Governmental Activities Year Ended June 30, 2017 (In Thousands) 1 . —. Public Safety- Public Safety- Community Community Fire Protection Animal center Development Services $33 $191 $252 $3,749 $32,821 $3,414 $16,799 $16,438 Activities • Revenues • Expenses 12 rges for Services i% 1 General Total Engineering and Interest on Revenues, Governmental Public Works Long -Tenn Debt Special Item, Activities and Transfers $17,717 $- $170,859 $199,650 $35,927 $172 $223 $162,285 Governmental Activities (In Thousands) The City's governmental activities increased its net position by $37,365,327 at the end of the fiscal year. This change is comprised of a net cost of services of $133,271,502 offset by general revenues of $132,601,661. As compared to the City's prior year outcome of $43,913,774, this is a decrease of $6,548,447 or 15%. The most significant changes in the Governmental activities in revenues and expenses are discussed below: • The net cost of services increased to $133,271,502 from the prior year amount of $90,870,686, an increase of $42,400,816 from all areas of the governmental activities, which had a negative impact on the City's net position, primarily due to the following areas: ❖ Capital contributions and grants decreased to $8,184,228 from the prior year amount of $31,356,340, a decrease of $23,172,112, predominantly from the following areas: (1) Engineering and Public Works decreased by $19,089,857 due to the prior year's receipt of donated infrastructure and rights-of-way from developers and reimbursements for certain capital projects based on agreements established in prior years; and (2) Community Development decreased by $4,000,000 due to prior year's property contribution to the Housing Successor Agency by a developer. ❖ Operating contributions and grants decreased to $5,326,579 from the prior year amount of $14,464,379, a decrease of $9,137,800, primarily in the following areas: (1) Engineering and Public Works decreased by $3,218,805 due to prior year's receipt of grant -related reimbursements; and (2) Community Development decreased by $5,510,862 due to the prior year's 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. Overall governmental expenses increased to $162,062,728 from the prior year amount of $150,334,56, an increase of $11,728,172, resulting from the net effect of increases and decreases in the following areas: (1) Increase of $14,139,652 in pension related items for measuring the net pension liability, deferred outflows and inflows of resources related to pensions, pension expense, fiduciary net position, and additions to/deductions from the fiduciary net position; (2) Increase of $2,687,234 in Public Safety — Police mainly due to the increase in contract services with the County's Sherriff's Department (largely due to salary and retirement cost increases); (3) Increase of $1,295,638 in the claims and judgement liability for workers' compensation and general liability insurance; (4) Increase of $987,712 in compensated leave balance accruals; (5) Increase of $3,471,639 in capital related items of Engineering and Public Works division; and (6) Net decrease of $10,266,103 in operating expenditures of all other governmental funds excluding Public Safety - Police. The net decrease in operating expenditures was primarily the result of $3,824,000 in PERS prefunding for the Fire District Fund in Fiscal Year 2015/16 that did not recur in Fiscal Year 2016/17, and a decrease in capital project activity for the Base Line and 1-15 Freeway Interchange as well as various local street rehabilitations totaling $4,515,670. 13 Total Cost Net Cost of Services of Services 2017 2016 2017 2016 General government $ 19,738 $ 18,419 $ (14,746) $ (13,272) Public safety -police 36,753 34,084 (34,896) (32,667) Public safety -fire protection 32,821 29,525 (32,788) (29,166) Public safety -animal center 3,414 2,697 (3,223) (2,482) Community development 16,799 14,653 (16,547) (4,336) Community services 16,438 13,852 (12,689) (10,111) Engineering and public works 35,927 36,298 (18,210) 1,971 Interest on long-term debt 172 806 (172) (806) Total $ 162,062 $ 150,334 $ (133,271) $ (90,869) The City's governmental activities increased its net position by $37,365,327 at the end of the fiscal year. This change is comprised of a net cost of services of $133,271,502 offset by general revenues of $132,601,661. As compared to the City's prior year outcome of $43,913,774, this is a decrease of $6,548,447 or 15%. The most significant changes in the Governmental activities in revenues and expenses are discussed below: • The net cost of services increased to $133,271,502 from the prior year amount of $90,870,686, an increase of $42,400,816 from all areas of the governmental activities, which had a negative impact on the City's net position, primarily due to the following areas: ❖ Capital contributions and grants decreased to $8,184,228 from the prior year amount of $31,356,340, a decrease of $23,172,112, predominantly from the following areas: (1) Engineering and Public Works decreased by $19,089,857 due to the prior year's receipt of donated infrastructure and rights-of-way from developers and reimbursements for certain capital projects based on agreements established in prior years; and (2) Community Development decreased by $4,000,000 due to prior year's property contribution to the Housing Successor Agency by a developer. ❖ Operating contributions and grants decreased to $5,326,579 from the prior year amount of $14,464,379, a decrease of $9,137,800, primarily in the following areas: (1) Engineering and Public Works decreased by $3,218,805 due to prior year's receipt of grant -related reimbursements; and (2) Community Development decreased by $5,510,862 due to the prior year's 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. Overall governmental expenses increased to $162,062,728 from the prior year amount of $150,334,56, an increase of $11,728,172, resulting from the net effect of increases and decreases in the following areas: (1) Increase of $14,139,652 in pension related items for measuring the net pension liability, deferred outflows and inflows of resources related to pensions, pension expense, fiduciary net position, and additions to/deductions from the fiduciary net position; (2) Increase of $2,687,234 in Public Safety — Police mainly due to the increase in contract services with the County's Sherriff's Department (largely due to salary and retirement cost increases); (3) Increase of $1,295,638 in the claims and judgement liability for workers' compensation and general liability insurance; (4) Increase of $987,712 in compensated leave balance accruals; (5) Increase of $3,471,639 in capital related items of Engineering and Public Works division; and (6) Net decrease of $10,266,103 in operating expenditures of all other governmental funds excluding Public Safety - Police. The net decrease in operating expenditures was primarily the result of $3,824,000 in PERS prefunding for the Fire District Fund in Fiscal Year 2015/16 that did not recur in Fiscal Year 2016/17, and a decrease in capital project activity for the Base Line and 1-15 Freeway Interchange as well as various local street rehabilitations totaling $4,515,670. 13 • General Revenues and Transfers decreased to $132,601,661 from the prior year amount of $135,318,574, a decrease of $2,716,913, due to the following areas: ❖ Revenue from taxes increased to $120,055,227 from the prior year amount of $117,103,354, an increase of $2,951,873. The increase in taxes is mostly due to the following areas: (1) Increase of $1,793,098 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; and (2) Increase of $1,056,981 in sales taxes due to the growing local economy. ❖ Use of money decreased to $5,735,054 from the prior year amount of $7,644,579, a decrease of $1,909,525. The decrease in use of money is mostly due to the net of the following areas: (1) Decrease of $3,900,000 in unrealized gain on investments; (2) Increase of $530,000 in the Housing Successor Agency for the conveyance of land held for resale in exchange of a note receivable pertaining to the Villa Pacifica II project; and (3) Increase of $1,527,263 in interest earnings. ❖ Other revenue decreased to $6,811,380 from the prior year amount of $10,570,641, a decrease of $3,759,261, mostly due to prior year's receipt by the Fire District of a one-time only distribution in the amount of $3,709,808 from the Public Agency Self -Insurance System (PASIS) for the Fire District's share of the now dissolved entity. PASIS facilitated payments of the Fire District's worker's compensation claims. • There was a special item in the current fiscal year in the amount of $38,257,705 to record the transfer of capital assets from the Successor Agency to the City. Business -Type Activities The following chart reflects the City's Business -Type activities for Fiscal Year 2016/17, showing a comparison of revenues versus expenses by activity. $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 Sports Complex Revenues $218 Expenses $2,981 Revenue and Expense By Function Business -Type Activities Year Ended June 30, 2017 (In Thousands) Municipal Utility REGIS Connect $11,713 $115 $7,905 $168 Fiber Optic Network $4,584 ■ Revenues Expenses 14 General Revenues and Transfers $656 Total Business - Type Activities $17,286 $11,054 Business -Type Activities (In Thousands) Total Cost of Services 2017 2016 Sports Complex $ 2,981 $ 2,663 Municipal Utility 7,905 8,436 REGIS Connect 168 65 Fiber Optic Network - - Net Cost of Services 2017 2016 $ (2,763) $ (2,494) 3,808 2,900 (53) 17 4,584 - Total $ 11,054 $ 11,164 $ 5,576 $ 423 The City's Business -Type activities net position increased by $6,232,319, an increase of $4,649,986 or 294%, as compared to the prior year amount of $1,582,333. 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 $977,297 primarily due to a $438,310 increase in pension expense and a $337,837 decrease in the transfer from the General Fund due to the planned utilization of resources accumulated in the prior year. • The Municipal Utility experienced an increase in net position in the amount of $2,678,651, an increase of $788,118 from the prior year increase of $1,890,533. The 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) Less than anticipated revenues from one-time line extension revenues from developers and cap and trade revenues. • REGIS Connect experienced a decrease in net position in the amount of $53,409, primarily due to a $57,620 contribution to the General Fund to offset the cost of a staffing restructuring in the Department of Innovation and Technology (DoIT). • Fiber Optic Network, for its first year of operations, received infrastructure, net of depreciation, from the governmental funds in the amount of $4,560,732. Additional revenues were received from fiber lease payments. 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. 15 The combined fund balance of $458,314,267 represents the starting point for the reconciliation of the balance sheet of governmental funds to the statement of net position detailed on page 33 of this report. This total includes the General Fund balance of $111,965,316. Of the total General Fund balance, $6,035,467, or 5%, are nonspendable fund balances, which means that these amounts cannot be spent because they are not in spendable form or must be maintained intact; $8,152,268, or 7%, are restricted fund balances which are the result of externally enforceable limitations on use; $69,939,616, or 63%, are committed fund balances which have resulted in self-imposed limitations placed upon the funds by the City Council; and the assigned fund balances of $27,837,965, or 25%, are constrained by an intent for specific purposes by City management, but are neither restricted nor committed, in accordance with the City's policy. The following chart illustrates the components of the General Fund Balance as of June 30, 2017. Committed 62.47% General Fund Balance June 30, 2017 $111,965,316 Assigned Restricted Nonspendable 24.86% 5.39% 7.28% General Fund Balance (In Thousands): Total Nonspendable $ 6,035 Restricted 8,152 Committed 69,940 Assigned 27,838 Total Fund Balance $ 111,965 Percent (%) of Total Fund Balance 5.39% 7.28% 62.47% 24.86% 100.00% 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: 16 • Changes in Economic Circumstances The funding goal for the fund balance committed for Changes in Economic Circumstances is established at a goal of a nine month reserve, or 75%, of the operating budgets for the City and the Fire District. The specific uses of this commitment include: 1) the declaration of a state or federal state of emergency or a local emergency as defined in Rancho Cucamonga Municipal Code Section 2.36.020; or 2) a change in economic circumstances in a given fiscal year that results in revenues to the City/Fire District being insufficient to cover expenditures for one or more fiscal years. The City Council/Fire Board may, by the affirming vote of four members, change the amount of this commitment and/or the specific uses of these monies. • City Facilities Capital Repair The City's General Fund balance committed for City facilities capital repair and property acquisition is established at a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for governmental activities. • Fire District Facilities Capital Repair The Fire District's fund balance committed for the Fire District facilities capital repair is established at a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than 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%. • 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. • 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. 17 • 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. • RC Sports Center Vehicle and Equipment Replacement The City's General Fund balance committed for the future replacement and repair of vehicles and equipment for the RC Sports Center. This reserve is established at a minimum goal of 105% of the estimated cost of the vehicles and equipment for the RC Sports 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 Housing Successor Agency Special Revenue Fund, the Fire District Special Revenue Fund, and Other Governmental non -major funds. On pages 28 through 31 the governmental funds balance sheet is shown. The combined fund balance of $458,314,267, which includes a restatement in the amount of $5,584,468 as discussed earlier, increased by $4,259,903, or approximately 2% from the prior year. The General Fund has a fund balance of $111,965,316, which has increased by $1,448,376, or 1%, from the prior year primarily due to the net result of revenues, expenditures, and other financing uses activity in the amount of $325,624, and the restatements of the beginning fund balance in the amount of $1,774,000, as previously discussed. The Housing Successor Agency Special Revenue Fund has a fund balance of $134,728,040, which increased $1,136,759, or 1 %, from the prior year primarily due to the gain on sale of land in exchange for a note receivable in the amount of $530,000 and interest earnings in the amount of $865,274 due to increased activity from housing projects residual receipts. The Fire District Special Revenue Fund (inclusive of the Fire District's General Fund, Community Facilities District 85-1 Fund, and Community Facilities District 88-1 Fund) has a fund balance of $73,189,657, which has increased by $1,311,696, or 2%, from the prior year. The Fire District experienced a deficiency of revenues over expenditures and other financing sources that amounted to $2,498,772 primarily due to increased capital outlay activity for the District's All -Risk Training Facility which was offset by a restatement of the beginning fund balance in the amount of $3,810,468, as previously discussed. It should be noted that the total fund balance for the Fire District Special Revenue Fund of $73,189,657 is $2,183,704 less than the total fund balance per the District's component unit financial statements of $75,373,361. This is due to differences in the reporting of the advance from the City to the District on the City's financial statements versus the District's component unit financial statements. On the City's financial statements, the advance is treated as an interfund liability since the District is basically viewed as one of the departments of the City. There is an offsetting interfund asset (advances to other funds) in the General Fund. In order to reflect this liability on the District's balance sheet within the City's financial statements, resources must be allocated from the District's fund balance to provide funding for the liability for reporting purposes only. On the Fire District's component unit financial statements, the advance is treated as a long-term liability and does not require the allocation of fund balance to fund the liability. For the entity -wide financial statements, the advances to and from other funds are eliminated against each other as they both relate to the City as a whole. 18 The other governmental funds make up the remainder of the combined fund balance for all governmental funds, classified as Non -Major Governmental Funds. These funds consist of the City's 57 special revenue funds and 12 capital project funds. These funds have a combined fund balance of $138,431,254, which has increased by $31,647,502, or 30%, from the prior year, primarily due to the following: ❖ The Citywide Infrastructure Improvement Special Revenue Fund with a reported fund balance of $27,614,838 is being reported as a nonmajor governmental fund as of June 30, 2017. This fund was reported as a major fund in the prior year. ❖ Landscape Maintenance Districts Special Revenue Fund has a fund balance of $15,908,684, which has increased by $1,137,730 over the 10 districts, from prior year fund balance of $14,770,954. ❖ Transportation Special Revenue Fund has a fund balance of $22,789,940, which has increased by $1,510,355 as a result of increased development activity, from prior year fund balance of $21,279,585. ❖ Park Land Acquisition Special Revenue Fund has a fund balance of $1,155,705, which has increased by $1,071,156, from prior year fund balance of $84,549 due to increased development activity. Proprietary Funds. The City's proprietary funds consist of four enterprise funds (two major and two non -major funds) and two internal service funds. The two major enterprise funds are: (1) Sports Complex Fund, which accounts for the activities of the Sports Complex; and (2) the Rancho Cucamonga Municipal Utility (RCMU) Fund, which accounts for the City's electric utility operations. The remaining two non -major enterprise funds are: (1) the Rancho Cucamonga Enterprise Geographic Information Systems (REGIS) Connect Fund, which accounts for the City's enterprise Geographic Information Systems (GIS) services; and (2) the Fiber Optic Network Fund, which accounts for the costs associated with the City's fiber optic network as well as leases for conduit and fiber access. 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 computer equipment replacement, to individual funds. Net position for the enterprise funds is $45,277,984 of which $32,434,369 represents the amount invested in capital assets and $770,383 is restricted for the purpose of public benefit through the Municipal Utility. Unrestricted net position amounts to $12,073,232. The increase in net position for the enterprise funds is $6,232,319, due to the transfer of assets from the governmental fund to the new enterprise fund, Fiber Optic Network, and revenues exceeding expenditures during the year predominantly coming from the Municipal Utility. • Before transfers from the General Fund in the amount of $1,429,627, the Sports Complex Fund experienced a loss of $2,406,924. 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 increased pension expense. Taking into account the transfers from the General Fund the net decrease in the fund's net position is $977,297. • Before transfers to the General Fund in the amount of $1,207,090, the Municipal Utility Fund generated income (the net of revenues and expenses) in the amount of $3,885,741. 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 $2,678,651. • As discussed previously, REGIS Connect experienced a decrease in net position in the amount of $53,409, primarily due to a $57,620 contribution to the General Fund to offset the cost of a staffing restructuring in the Department of Innovation and Technology (DoIT). • Infrastructure of $4,560,732, net of depreciation, was transferred from the governmental activities toward the Fiber Optic Network Fund. Operating income during its first year was $23,750. 19 Net position for the internal service funds is $11,315,427, of which $5,923,086 represents the amount invested in capital assets. Unrestricted net position amounts to $5,392,341 which will be used to cover operations, future equipment and vehicle replacements, and future computer equipment and technology replacements, as well as debt service payments. Total net position decreased for these funds by $880,491 due to operational costs. • Before the transfer from the Air Quality Improvement Fund in the amount of $30,000, the Equipment and Vehicle Replacement Fund experienced a loss in the amount of $1,208,564. After the transfer, the Equipment and Vehicle Replacement Fund experienced a decrease in net position in the amount of $1,178,564 due to the planned replacement of City vehicles and equipment. • Before transfers from the General Fund and the City Technology Fee Fund in the total amount of $564,160 and transfers to Fire Capital Fund in the amount of $3,760, the Computer Equipment and Technology Replacement Fund experienced a decrease in net position in the amount of $262,327. After net transfers, the Computer Equipment and Technology Replacement Fund experienced an increase in net position in the amount of $298,073. 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 $78,145,108 were $1,241,742 less than the final budgeted revenues of $79,386,850. The significant areas that showed negative variances from the budget are: (1) use of money and property with an unrealized investment loss variance of $859,547 offset by a positive interest earnings variance of $212,851; and (2) miscellaneous revenue for reimbursements from the Fire District representing principal payments in the amount of $684,870. This reimbursement was budgeted to reflect the inflow of resources to the General Fund; however, it is accounted for within the balance sheet for financial reporting purposes. The General Fund's actual ending expenditures of $83,709,829 were $6,002,431 less than the final budget of $89,712,260. The significant areas that showed positive variances from the budget are in the following areas: ❖ General Government in the amount of $1,809,715 savings from salaries, fringe benefits, electric utilities as a result of solar panel installations, contract services, legal services, and general liability claims. ❖ Public Safety — Police in the amount of $763,584 savings from contract services, vehicle operations and maintenance, and vehicle collision repair. ❖ Public Safety — Animal Center in the amount of $115,567 savings mostly from salary and fringe benefits. ❖ Community Development in the amount of $1,186,816 savings from Planning's reimbursable contract services, contract services, salary savings, and other functions of the division. ❖ Community Services in the amount of $337,801 savings mostly from salary and fringe benefits. ❖ Engineering and Public Works in the amount of $1,165,811 savings from salaries, fringe benefits, contract services, and other operations and maintenance expenditures. ❖ Transfers Out in the amount of $235,403 savings due to the net of a less than anticipated transfer needed for the Sports Complex of $632,143 and a higher than anticipated transfer to the Computer Equipment/Technology Replacement Fund in the amount of $396,740 to provide funding for future computer equipment replacement. 20 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 $824,769,827, net of depreciation, invested in a broad range of capital assets. This amount represents a net increase (including additions and deductions) of $56,996,517 from the prior year amount of $767,773,310. The table below presents summary information on the City's capital assets. Capital Assets For the Year Ended June 30, 2017 (Net of Depreciation, In Thousands) As discussed earlier, the most significant changes in capital assets for governmental activities are the capital asset contributions by the Successor Agency, contributions of infrastructure, and various purchases of equipment and vehicles. The net increase in construction in progress (CIP) is due to increased project activity during the fiscal year. Additions to CIP during the year amount to $22,835,286 for the construction of the All - Risk Training Facility, installation of solar photovoltaic systems at various locations, the relocation of the RC Sports Center, completion of the second floor of the Paul A. Biane Library, and other various park and street improvements. The most significant changes in capital assets for business -type activities include the increase in CIP pertaining to the solar photovoltaic systems project at the Sports Complex and various infrastructure projects associated with the Municipal Utility. Furthermore, infrastructure of $4,560,732, net of depreciation, was transferred from the governmental activities toward the business -type activity Fiber Optic Network Fund. Additional information on the City's capital assets can be found in Note 5 of the notes to financial statements. 21 Governmental Business -Type Activities Activities Total 2017 2016 2017 2016 2017 2016 Land $ 93,210 $ 91,606 $ 5,451 $ 5,451 $ 98,661 $ 97,057 Right-of-way 237,065 237,065 - - 237,065 237,065 Construction in progress 64,003 48,541 3,016 2,346 67,019 50,887 Buildings improvements 116,590 81,657 6,887 7,318 123,477 88,975 Improvements other than buildings 25,280 23,324 57 54 25,337 23,378 Equipment and vehicles 10,633 6,001 120 135 10,753 6,136 Furniture and fixtures 637 176 - - 637 176 Infrastructure 243,733 249,793 16,903 12,879 260,636 262,672 Intangible 1,184 1,427 - - 1,184 1,427 TOTALS $ 792,335 $ 739,590 $ 32,434 $ 28,183 $ 824,769 $ 767,773 As discussed earlier, the most significant changes in capital assets for governmental activities are the capital asset contributions by the Successor Agency, contributions of infrastructure, and various purchases of equipment and vehicles. The net increase in construction in progress (CIP) is due to increased project activity during the fiscal year. Additions to CIP during the year amount to $22,835,286 for the construction of the All - Risk Training Facility, installation of solar photovoltaic systems at various locations, the relocation of the RC Sports Center, completion of the second floor of the Paul A. Biane Library, and other various park and street improvements. The most significant changes in capital assets for business -type activities include the increase in CIP pertaining to the solar photovoltaic systems project at the Sports Complex and various infrastructure projects associated with the Municipal Utility. Furthermore, infrastructure of $4,560,732, net of depreciation, was transferred from the governmental activities toward the business -type activity Fiber Optic Network Fund. Additional information on the City's capital assets can be found in Note 5 of the notes to financial statements. 21 Debt Administration At year end, the City's governmental activities had total debt outstanding in the amount of $16,458,190 for capital leases, advances from Successor Agency, claims and judgments payable, and accrued employee benefits, compared to $16,064,529 in the prior year, an increase of $393,661, or 2% from the prior year. There is no long-term debt of the business -type activities. The summary of outstanding long-term debt with comparative amounts for the previous fiscal year is presented below: Long -Term Debt For the Year Ended June 30, 2017 (In Thousands) Capital Leases Advances from Successor Agency Claims and Judgments Payable Accrued Employee Benefits Total Long -Term Debt Governmental Activities 2017 2016 $ 486 $ 1,034 3,954 3,954 4,414 3,119 7,604 7,958 $ 16,458 $ 16,065 Additional information on the City's outstanding debt 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 2009/10, in its third quarterly report for September 2017, the UCLA Anderson Forecast's quarterly outlook for the national economy continues to anticipate a modest growth in real Gross Domestic Product (GDP) with gains in employment. GDP is expected to continue to grow by 2.1% in 2017, 2.8% in 2018, and 2.1% in 2019. With the economy approaching full employment, employment growth is expected to slow down. The national unemployment rate is anticipated to remain at or below the current rate of 4.4%. The state's unemployment rate according to the Employment Development Department (EDD) as of September 2017 news release is now at 5.1%. According to the UCLA Anderson Forecast, in California, steady gains in employment are expected through 2019 (0.9% in 2018 and 0.9% in 2019), 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 4.5% by the end of the forecast period, that is, in 2019. Real personal income growth is forecast to grow 3.1% in 2018 and 3.1% in 2019. Despite continued economic expansion, employment in the retail industry continued to decline due to an increase in online shopping and cashier -less stores. Some retail sectors were affected more seriously than others by the e-commerce competition. Department and electronic stores appear to be the most adversely affected, while others, such as Walmart, auto dealers and gas stations, maintained growth amid the auto boom and low oil prices. Locally, the following key economic indicators reflect the growth and prosperity of the City. • Modest growth next fiscal year in Sales Tax (5.86% increase), Property Tax (4.68% increase), Vehicle License Fees and Property Tax In -Lieu of VLF (4.73% increase), and Transient Occupancy Tax (9.73°/x). • Low unemployment rate. The City of Rancho Cucamonga's unemployment rate of 3.7% is well below the State level of 5.1 % and San Bernardino County level of 5.0%. Rancho Cucamonga was ranked sixth best place to find job in the U.S. in a report released by the financial information website, WalletHub, earlier this year. 22 Management's emphasis on economic development continues to attract businesses and residents. Hotel development is booming in Rancho Cucamonga. Several hotels and mixed-use projects are on their way to completion. Expanded housing opportunities are under construction or going through entitlement. Expanded recreational opportunities in progress such as a new RC Sports Center under construction and a soccer complex that has broken ground and is expected to be completed in spring of 2018. Advanced manufacturing and corporate offices are also growing in the City. 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 that have both completed the Financial Health Diagnostic and shared those results publicly. A summary of the City's results can be found in the Fiscal Year 2017/18 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 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 faces challenges on the expenditure side with some new cost increases in key areas such as: • Series of minimum wage increases that began in July 2014 and an additional bill signed by Governor Brown in April 2016 to 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. Overall, the Police Department costs are rising approximately 5-7% a year, making this the City's most significant contract cost increase. • Significant projected increases in the cost to provide and maintain CalPERS retirement benefits anticipated over the next six years. From FY 2016/17 to FY 2022/23, it is anticipated that the PERS employer contribution rates will increase from 15.845% to 26.416% for City Miscellaneous, 18.091 % to 32.375% for Fire District Miscellaneous, and 30.852% to 50.90% for Fire District Safety Tier 1 pension plans. • Ongoing fiscal challenges in several of the City's landscape maintenance districts (LMDs), street lighting districts (SLDs), and community facilities districts (CFDs) following the voter approved mandate of Measure A in 2015 to manage existing and future expenses without going to the residents for additional revenue. 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 2017/18 City General Fund Budget is $80,757,570 and for the fifth year in a row does not require the use of General Fund reserves. The operating budget represents a $3,306,720, or 4.27%, increase from Fiscal Year 2016/17. The recommended Fiscal Year 2017/18 operating budget for the Fire District is $35,014,090. This is a $1,771,330, or 5.33%, increase over Fiscal Year 2016/17. 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 2017/18 Library budget is $5,163,710 which represents an increase of $432,980, or 9.15%, from Fiscal Year 2016/17. Additional details regarding the City's operating budget and its overall Fiscal Year 2017/18 Adopted Budget can be found on the City's website at https://www.citvofrc.us/citvhalI/admin/finance/budgeting.asp. Questions or requests for information regarding the Adopted Budget should be directed to the Finance Department at the address below. 23 Contacting the City's Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Rancho Cucamonga's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department at the City of Rancho Cucamonga, 10500 Civic Center Drive, Rancho Cucamonga, CA 91730. 24 CITY OF RANCHO CUCAMONGA STATEMENT OF NET POSITION JUNE 30, 2017 See Notes to Financial Statements 25 Primary Government Governmental Business -Type Activities Activities Total Assets: Cash and investments $ 326,045,362 $ 17,845,813 $ 343,891,175 Receivables: Accounts, net of allowances 3,829,187 1,617,176 5,446,363 Taxes 7,354,572 - 7,354,572 Notes and loans 147,235,219 2,102 147,237,321 Accrued interest 593,110 32,536 625,646 Other loans 1,609,912 - 1,609,912 Grants 441,751 441,751 Internal balances 3,128,452 (3,128,452) - Prepaid costs 929,543 7,201 936,744 Deposits 33,387 - 33,387 Due from external parties/outside agencies 203,575 203,575 Prepaid other post employment benefits 14,477,639 14,477,639 Land held for resale 4,269,288 4,269,288 Restricted assets: Cash with fiscal agent 688,231 688,231 Pension rate stabilization program 6,032,645 - 6,032,645 Capital assets, not being depreciated 394,276,924 8,466,922 402,743,846 Capital assets, net of depreciation 398,058,534 23,967,447 422,025,981 Total Assets 1,309,207,331 48,810,745 1,358,018,076 Deferred Outflows of Resources: Deferred pension related items 25,302,799 809,236 26,112,035 Total Deferred Outflows of Resources 25,302,799 809,236 26,112,035 Liabilities: Accounts payable 8,606,951 1,156,010 9,762,961 Accrued liabilities 3,050,085 76,642 3,126,727 Unearned revenue 1,383,363 316,250 1,699,613 Deposits payable 52,278 410,063 462,341 Due to other governments 948,449 - 948,449 Noncurrent liabilities: Due within one year 7,881,474 7,881,474 Due in more than one year 8,576,716 - 8,576,716 Net pension liability 71,140,432 2,119,584 73,260,016 Total Liabilities 101,639,748 4,078,549 105,718,297 Deferred Inflows of Resources: Deferred pension related items 6,351,005 263,448 6,614,453 Total Deferred Inflows of Resources 6,351,005 263,448 6,614,453 Net Position: Net investment in capital assets 791,849,229 32,434,369 824,283,598 Restricted for: Community development projects 174,718,804 - 174,718,804 Public safety 1,928,455 1,928,455 Parks and recreation 4,935,552 4,935,552 Fire protection 58,769,855 58,769,855 Engineering and public works 77,200,848 77,200,848 Community services 6,317,519 6,317,519 Capital projects 52,231,333 - 52,231,333 Public benefit - Municipal Utility - 770,383 770,383 Unrestricted 58,567,782 12,073,232 70,641,014 Total Net Position $ 1,226,519,377 $ 45,277,984 $ 1,271,797,361 See Notes to Financial Statements 25 CITY OF RANCHO CUCAMONGA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2017 Business -Type Activities Sports Complex 2,981,392 218,220 - - Municipal Utility 7,904,738 11,713,175 - - REGIS Connect 167,618 114,120 - - Fiber Optic Network - 23,750 - 4,560,732 Total Business -Type Activities 11,053,748 12,069,265 - 4,560,732 Total Primary Government $ 173,116,476 $ 27,349,684 $ 5,326,579 $ 12,744,960 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 Special Item Transfers Total General Revenues, Special Item 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 26 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government $ 19,738,312 $ 4,929,828 $ 62,440 $ - Public safety - police 36,753,481 1,444,596 413,287 - Public safety - fire protection 32,821,186 - 33,206 - Public safety - animal center 3,414,315 191,073 - - Community development 16,799,089 251,629 - - Community services 16,437,565 3,251,353 497,048 - Engineering and public works 35,926,739 5,211,940 4,320,598 8,184,228 Interest on long-term debt 172,041 - - - Total Governmental Activities 162,062,728 15,280,419 5,326,579 8,184,228 Business -Type Activities Sports Complex 2,981,392 218,220 - - Municipal Utility 7,904,738 11,713,175 - - REGIS Connect 167,618 114,120 - - Fiber Optic Network - 23,750 - 4,560,732 Total Business -Type Activities 11,053,748 12,069,265 - 4,560,732 Total Primary Government $ 173,116,476 $ 27,349,684 $ 5,326,579 $ 12,744,960 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 Special Item Transfers Total General Revenues, Special Item 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 26 Net (Expenses) Revenues and Changes in Net Position Primary Government Governmental Business -Type Activities Activities Total $ (14,746,044) $ - $ (14,746,044) (34,895,598) - (34,895,598) (32,787,980) - (32,787,980) (3,223,242) - (3,223,242) (16,547,460) - (16,547,460) (12,689,164) - (12,689,164) (18,209,973) - (18,209,973) (172,041) - (172,041) (133,271,502) - (133,271,502) - (2,763,172) (2,763,172) - 3,808,437 3,808,437 - (53,498) (53,498) - 4,584,482 4,584,482 - 5,576,249 5,576,249 (133,271,502) 5,576,249 (127,695,253) 79,856,746 - 79,856,746 4,810 127,934 132,744 3,282,360 - 3,282,360 29,288,386 - 29,288,386 7,538,415 - 7,538,415 84,510 - 84,510 5,735,054 256,370 5,991,424 6,811,380 49,229 6,860,609 38,257,705 - 38,257,705 (222,537) 222,537 - 170,636,829 656,070 171,292,899 37,365,327 6,232,319 43,597,646 1,183,569,582 39,045,665 1,222,615,247 5,584,468 - 5,584,468 $ 1,226,519,377 $ 45,277,984 $ 1,271,797,361 See Notes to Financial Statements 27 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2017 Assets: Cash and investments Receivables: Accounts, net of allowances Taxes Notes Accrued interest Otherloans Grants Prepaid costs Deposits Due from other funds Advances to other funds Due from external parties/agency funds Land held for resale Restricted assets: Cash and investments with fiscal agents Pension rate stabilization program Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources See Notes to Financial Statements 28 $ 2,669,077 $ - $ 1,904,785 1,532,997 - 1,019,372 42,959 - - - - 2,183,704 4,245,033 - 5,107,861 - 24,230,656 - 24,230,656 - Special Revenue Funds Housing Successor General Agency Fire District $ 99,890,569 $ 7,697,249 $ 72,460,115 872,551 - 1,236,120 6,571,979 - 314,924 - 147,235,219 - 196,052 21,528 96,643 775,397 4,700 68,866 20,000 - - 528,361 - - 5,240,070 - - 203,575 - - - 4,000,000 - 1,911,795 - 4,120,850 $ 116,210,349 $ 158,958,696 $ 78,297,518 $ 2,669,077 $ - $ 1,904,785 1,532,997 - 1,019,372 42,959 - - - - 2,183,704 4,245,033 - 5,107,861 - 24,230,656 - 24,230,656 - CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2017 (CONTINUED) Assets: Cash and investments Receivables: Accounts, net of allowances Taxes Notes Accrued interest Otherloans Grants Prepaid costs Deposits Due from other funds Advances to other funds Due from external parties/agency funds Land held for resale Restricted assets: Cash and investments with fiscal agents Pension rate stabilization program Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources See Notes to Financial Statements 29 Other Total Governmental Governmental Funds Funds $ 140,636,531 $ 320,684,464 1,691,496 3,800,167 467,669 7,354,572 - 147,235,219 268,703 582,926 1,609,912 1,609,912 441,751 441,751 65,675 914,638 13,387 33,387 - 528,361 5,240,070 - 203,575 269,288 4,269,288 688,231 688,231 - 6,032,645 $ 146,152,643 $ 499,619,206 $ 3,980,423 $ 8,554,285 497,716 3,050,085 1,383,363 1,383,363 9,319 52,278 948,449 948,449 486,275 486,275 - 2,183,704 7,305,545 16,658,439 415,844 24,646,500 415,844 24,646,500 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2017 Fund Balances: Nonspendable: Prepaid costs Deposits Advances to other funds Restricted: Community development projects Public safety - police Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Information technology Technology replacement General plan update Contractual obligation PERS rate stabilization SB1186 certified access specialist services Committed: Law enforcement Vehicle and equipment replacement Working capital City facilities capital repair Changes in economic circumstances Employee leave payouts Self insurance Fire District facilities capital repair RC Sports Center vehicle and equipment replacement PASIS worker's compensation tail claims Assigned: Radio system acquisition Communications City infrastructure Capital projects Sphere of influence issues Animal Center operations Community development projects Mobile home park program Fiber master plan Continuing operations Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances See Notes to Financial Statements 30 Special Revenue Funds Housing Successor General Agency Fire District 775,397 4,700 68,866 20,000 - - 5,240,070 - - 134,723,340 3,616,130 - 16,343,472 541,686 - - 60,493 - 23,452 505,891 - - 1,483,153 - 87,525 1,911,795 - 5,420,850 33,120 - - 8,372,843 - - - - 3,630,871 4,037,879 - 15,673,630 25,542,551 - - 17,900,413 - 8,890,876 4,113,182 - 3,490,672 7,584,947 - - - - 8,642,982 2,387,801 - - - - 1,625,959 501,722 - - - - 1,153,445 19,222,070 - - - - 8,120,064 2,269,910 - - 401,278 - - 1,820,823 - - 139,689 - - 3,342,660 - - 139,813 - 16,993 111,965,316 134,728,040 73,189,657 $ 116,210,349 $ 158,958,696 $ 78,297,518 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2017 (CONTINUED) Fund Balances: Nonspendable: Prepaid costs Deposits Advances to other funds Restricted: Community development projects Public safety - police Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Information technology Technology replacement General plan update Contractual obligation PERS rate stabilization S131 186 certified access specialist services Committed: Law enforcement Vehicle and equipment replacement Working capital City facilities capital repair Changes in economic circumstances Employee leave payouts Self insurance Fire District facilities capital repair RC Sports Center vehicle and equipment replacement PASIS worker's compensation tail claims Assigned: Radio system acquisition Communications City infrastructure Capital projects Sphere of influence issues Animal Center operations Community development projects Mobile home park program Fiber master plan Continuing operations Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances See Notes to Financial Statements 31 Other Total Governmental Governmental Funds Funds 65,675 914,638 13,387 33,387 - 5,240,070 15, 559,117 150, 282,457 802,691 802,691 4,935,549 4,935,549 47,451,557 47,451,557 32,271,733 52,231,335 4,681,078 4,681,078 10, 702, 349 10, 702, 349 15,908,684 15,908,684 6,095,525 6,095,525 - 541,686 - 83,945 86,261 592,152 - 1,570,678 7,332,645 33,120 8,372,843 3,630,871 19,711,509 25,542,551 26,791,289 7,603,854 7,584,947 8,642,982 2,387,801 1,625,959 501,722 1,153,445 19,222,070 8,120,064 2,269,910 401,278 1,820,823 139,689 3,342,660 156,806 (142,352) (142,352) 138,431,254 458,314,267 $ 146,152,643 $ 499,619,206 THIS PAGE INTENTIONALLY LEFT BLANK 32 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2017 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. Deferred outflows related to pension related items are not included in the governmental fund activity: Contributions made after the measurement date $ 7,754,169 Adjustment due to differences in proportions 1,274,866 Changes in assumptions 1,736,982 Differences between expected and actual experiences 7,815 Differences between actual contributions and the proportionate share of contributions 75,117 Net Difference between projected and actual earning on plan investments 14,453,850 Deferred inflows related to pension related items are not included in the governmental fund activity: Adjustment due to differences in proportions (113,473) Changes in assumptions (2,782,139) Differences between expected and actual experiences (3,420,481) Differences between actual contributions and the proportionate share of contributions (34,912) 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 (4,414,483) Capital leases (18,759) Compensated absences (7,603,854) Net pension liability (71,140,432) 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. Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds are added to the statement of net position. Net position of governmental activities See Notes to Financial Statements 33 458,314,267 785,944,902 25,302,799 (6,351,005) (87,131,152) 14,477,639 24,646,500 11,315,427 $ 1,226,519,377 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2017 See Notes to Financial Statements 34 Special Revenue Funds Housing Successor General Agency Fire District Revenues: Taxes $ 64,297,386 $ - $ 37,860,006 Licenses and permits 4,006,360 - 13,525 Intergovernmental 654,672 - - Charges for services 2,895,445 - 1,362 Use of money and property 612,665 1,323,105 653,302 Fines and forfeitures 1,169,246 - 80,105 Contributions 120,850 - - Developer participation - - - Miscellaneous 2,682,266 85,754 1,287,669 Total Revenues 76,438,890 1,408,859 39,895,969 Expenditures: Current: General government 12,687,581 - - Public safety - police 35,817,260 - - Public safety - fire protection - - 30,303,731 Public safety - animal center 3,007,643 - - Community development 4,540,048 272,100 Community services 4,571,035 - Engineering and public works 11,132,770 - - Capital outlay 3,676,301 - 11,991,682 Debt service: Principal retirement 9,681 - 3,403 Interest and fiscal charges 23,996 - 115,247 Total Expenditures 75,466,315 272,100 42,414,063 Excess (Deficiency) of Revenues Over (Under) Expenditures 972,575 1,136,759 (2,518,094) Other Financing Sources (Uses): Transfers in 1,557,260 - 3,760 Transfers out (2,773,837) - - Sale of capital assets 148,958 - 15,562 Contributions to other governments (230,580) - - Total Other Financing Sources (Uses) (1,298,199) - 19,322 Net Change in Fund Balances (325,624) 1,136,759 (2,498,772) Fund Balances: Beginning of year 110,516,940 133,591,281 71,877,961 Restatements 1,774,000 - 3,810,468 Beginning of year, as restated 112,290,940 133,591,281 75,688,429 End of Year $ 111,965,316 $ 134,728,040 $ 73,189,657 See Notes to Financial Statements 34 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2017 Other Financing Sources (Uses): Transfers in Transfers out Sale of capital assets Contributions to other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances: Beginning of year Restatements Beginning of year, as restated End of Year See Notes to Financial Statements 35 885,150 2,446,170 (485,270) (3,259,107) - 164,520 - (230,580) 399,880 (878,997) 5,947,540 4,259,903 132,483,714 448,469,896 - 5,584,468 132,483,714 454,054,364 $ 138,431,254 $ 458,314,267 Other Total Governmental Governmental Funds Funds Revenues: Taxes $ 17,813,325 $ 119,970,717 Licenses and permits 254,940 4,274,825 Intergovernmental 16,204, 971 16, 859,643 Charges for services 3,573,645 6,470,452 Use of money and property 1,447,665 4,036,737 Fines and forfeitures - 1,249,351 Contributions 542,004 662,854 Developer participation 7,117,954 7,117,954 Miscellaneous 2,763,836 6,819,525 Total Revenues 49,718,340 167,462,058 Expenditures: Current: General government 3,704,694 16,392,275 Public safety - police 321,409 36,138,669 Public safety - fire protection 33,218 30,336,949 Public safety - animal center - 3,007,643 Community development 10,637,299 15,449,447 Community services 8,608,533 13,179,568 Engineering and public works 8,787,949 19,920,719 Capital outlay 12,068,406 27,736,389 Debt service: Principal retirement 8,817 21,901 Interest and fiscal charges 355 139,598 Total Expenditures 44,170,680 162,323,158 Excess (Deficiency) of Revenues Over (Under) Expenditures 5,547,660 5,138,900 Other Financing Sources (Uses): Transfers in Transfers out Sale of capital assets Contributions to other governments Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances: Beginning of year Restatements Beginning of year, as restated End of Year See Notes to Financial Statements 35 885,150 2,446,170 (485,270) (3,259,107) - 164,520 - (230,580) 399,880 (878,997) 5,947,540 4,259,903 132,483,714 448,469,896 - 5,584,468 132,483,714 454,054,364 $ 138,431,254 $ 458,314,267 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, 2017 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. Capital outlay $ 28,361,814 Capital assets contributed from the Successor Agency 38,257,705 Depreciation (13,971,862) Contributed capital assets 2,397,513 Transfer of assets to Fiber Optic Network Enterprise Fund (4,560,732) Gain/(loss) on sale of capital assets (430,990) 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 $ 21,901 Change in claims and judgments payable (1,295,637) Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Governmental funds report all contributions in relation to the annual required contribution (ARC) for OPEB as expenditures; however, in the statement of activities, only the ARC is an expense. Pension obligation expenses is an expenditure in the governmental funds, but reduce the Net Pension Liability in the statement of net position. Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds are added to the statement of net position. Change in net position of governmental activities See Notes to Financial Statements 36 4,259,903 50,053,448 (1,273,736) 353,902 (735,124) (6,075,163) (8,337,412) (880,491) $ 37,365,327 CITY OF RANCHO CUCAMONGA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2017 Business -Type Activities - Enterprise Funds Major Funds Governmental Other Activities - Sports Municipal Enterprise Internal Complex Utility Funds Total Service Funds Assets: Current: Cash and investments $ 1,103,864 $ 16,647,492 $ 94,457 $ 17,845,813 $ 5,360,898 Receivables: Accounts 41,598 1,536,338 39,240 1,617,176 29,020 Notes and loans - 2,102 - 2,102 - Accrued interest 32,449 87 32,536 10,184 Prepaid costs 7,201 - 7,201 14,905 Due from other funds - - - 30,000 Total Current Assets 1,145,462 18,225,582 133,784 19,504,828 5,445,007 Noncurrent: Capital assets - net of accumulated depreciation 14,876,264 12,997,373 4,560,732 32,434,369 6,390,556 Total Noncurrent Assets 14,876,264 12,997,373 4,560,732 32,434,369 6,390,556 Total Assets 16,021,726 31,222,955 4,694,516 51,939,197 11,835,563 Deferred Outflows of Resources: Deferred pension related items 565,624 243,612 - 809,236 - Total Deferred Outflows of Resources 565,624 243,612 - 809,236 - Total Assets and Deferred Outflows of Resources $ 16,587,350 $ 31,466,567 $ 4,694,516 $ 52,748,433 $ 11,835,563 Liabilities, Deferred Inflows of Resources and Net Position: Liabilities: Current: Accounts payable $ 326,005 $ 829,696 $ 309 $ 1,156,010 $ 52,666 Accrued liabilities 55,314 21,328 - 76,642 - Unearned revenues 316,250 - - 316,250 Deposits payable - 410,063 - 410,063 Due to other funds - 72,086 72,086 - Capitalleases - - - 467,470 Total Current Liabilities 697,569 1,261,087 72,395 2,031,051 520,136 Noncurrent: Advances from other funds 3,056,366 - - 3,056,366 - Net pension liability 1,515,549 604,035 - 2,119,584 Total Noncurrent Liabilities 4,571,915 604,035 - 5,175,950 - Total Liabilities 5,269,484 1,865,122 72,395 7,207,001 520,136 Deferred Inflows of Resources: Deferred pension related items 188,107 75,341 - 263,448 - Total Deferred Inflows of Resources 188,107 75,341 - 263,448 - Net Position: Net investment in capital assets 14,876,264 12,997,373 4,560,732 32,434,369 5,923,086 Restricted for public benefit - Municipal Utility - 770,383 - 770,383 - Unrestricted (3,746,505) 15,758,348 61,389 12,073,232 5,392,341 Total Net Position 11,129,759 29,526,104 4,622,121 45,277,984 11,315,427 Total Liabilities, Deferred Inflows of Resources and Net Position $ 16,587,350 $ 31,466,567 $ 4,694,516 $ 52,748,433 $ 11,835,563 See Notes to Financial Statements 37 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2017 Business -Type Activities - Enterprise Funds Operating Expenses: Salaries and benefits Major Funds 594,724 - Governmental - Maintenance and operations 518,166 Other 167,118 Activities - 345,882 Sports Municipal Enterprise 500 Internal 377,377 Complex Utility Funds Total Service Funds Operating Revenues: Total Operating Expenses 2,949,896 7,904,738 167,618 11,022,252 Sales and service charges $ 218,220 $ 11,713,175 $ 137,870 $ 12,069,265 $ 261,190 Rent 212,331 - - 212,331 - Miscellaneous 25,798 23,431 - 49,229 - Total Operating Revenues 456,349 11,736,606 137,870 12,330,825 261,190 Operating Expenses: Salaries and benefits 1,800,516 594,724 - 2,395,240 - Maintenance and operations 518,166 5,984,009 167,118 6,669,293 345,882 Contractual services 197,222 509,466 500 707,188 377,377 Depreciation expense 433,992 816,539 - 1,250,531 1,077,681 Total Operating Expenses 2,949,896 7,904,738 167,618 11,022,252 1,800,940 Operating Income (Loss) (2,493,547) 3,831,868 (29,748) 1,308,573 (1,539,750) Nonoperating Revenues (Expenses): Admissions tax 127,934 - - 127,934 - Interest revenue (9,815) 53,873 (19) 44,039 18,913 Interest expense (31,496) - - (31,496) (32,443) Contributions - - 4,560,732 4,560,732 - Miscellaneous - - - - 82,389 Total Nonoperating Revenues(Expenses) 86,623 53,873 4,560,713 4,701,209 68,859 Income (Loss) Before Transfers (2,406,924) 3,885,741 4,530,965 6,009,782 (1,470,891) Transfers in 1,429,627 - - 1,429,627 594,160 Transfers out - (1,207,090) - (1,207,090) (3,760) Changes in Net Position (977,297) 2,678,651 4,530,965 6,232,319 (880,491) Net Position: Beginning of Year 12,107,056 26,847,453 91,156 39,045,665 12,195,918 Changes in Net Position (977,297) 2,678,651 4,530,965 6,232,319 (880,491) End of Fiscal Year $ 11,129,759 $ 29,526,104 $ 4,622,121 $ 45,277,984 $ 11,315,427 See Notes to Financial Statements 38 CITY OF RANCHO CUCAMONGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2017 Cash Flows from Operating Activities: Cash received from customers and users Cash paid to suppliers for goods and services Cash paid to employees for services Cash received from (payments to) others Net Cash Provided (Used) by Operating Activities Cash Flows from Non -Capital Financing Activities: Cash transfers in Cash transfers out Admissions tax received Miscellaneous Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Interest paid on interfund financing Advance from other funds Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in grants receivable (Increase) decrease in deferred outflows from pensions (Increase) decrease in prepaid expense (Increase) decrease in net pension asset Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in unearned revenues Increase (decrease) in deposits payable Increase (decrease) in due to other funds Increase (decrease) in net pension liability Increase (decrease) in deferred inflows from pensions Total Adjustments Net Cash Provided (Used) by Operating Activities Non -Cash Investing, Capital, and Financing Activities: Acquisition of capital assets from City contribution See Notes to Financial Statements Business -Type Activities - Enterprise Funds Major Funds Governmental 1,429,627 - (1,207,090) 151,934 1,581,561 (1,207,090) (140,347) (800,507) (31,496) (159,246) 1,429,627 594,160 (1,207,090) (3,760) 151,934 - 82,389 374,471 672,789 (940,854) (3,799,695) (526,173) (32,443) (31,496) (159,246) (331,089) (800,507) - (1,131,596) (4,358,311) (9,815) 30,903 (68) 21,020 16,187 (9,815) 30,903 (68) 21,020 16,187 (57,916) 3,032,039 23,019 2,997,142 (4,626,329) 1,161,780 13,615,453 71,438 14,848,671 9,987,227 $ 1,103,864 $ 16,647,492 $ 94,457 $ 17,845,813 $ 5,360,898 $(2,493,547) $ 3,831,868 $ (29,748) $ 1,308,573 $ (1,539,750) 433,992 816,539 Other 1,250,531 Activities - Sports Municipal Enterprise (104,566) Internal Complex Utility Funds Total Service Funds $ 732,208 $ 11,762,961 $ 122,120 $ 12,617,289 $ 232,170 (665,095) (6,251,521) (99,033) (7,015,649) (1,189,164) (1,391,484) (526,138) - (1,917,622) 25,798 23,431 23 49,229 (451,000) (1,298,573) 5,008,733 23,087 3,733,247 (956,994) 1,429,627 - (1,207,090) 151,934 1,581,561 (1,207,090) (140,347) (800,507) (31,496) (159,246) 1,429,627 594,160 (1,207,090) (3,760) 151,934 - 82,389 374,471 672,789 (940,854) (3,799,695) (526,173) (32,443) (31,496) (159,246) (331,089) (800,507) - (1,131,596) (4,358,311) (9,815) 30,903 (68) 21,020 16,187 (9,815) 30,903 (68) 21,020 16,187 (57,916) 3,032,039 23,019 2,997,142 (4,626,329) 1,161,780 13,615,453 71,438 14,848,671 9,987,227 $ 1,103,864 $ 16,647,492 $ 94,457 $ 17,845,813 $ 5,360,898 $(2,493,547) $ 3,831,868 $ (29,748) $ 1,308,573 $ (1,539,750) 433,992 816,539 - 1,250,531 1,077,681 (14,593) (74,223) (15,750) (104,566) (29,020) 51,418 51,418 (383,353) (161,280) (544,633) - 1,427 1,427 (14,905) 112,810 62,356 - 175,166 51,323 239,125 23 290,471 (451,000) (1,030) 1,402 - 372 316,250 - 316,250 - 72,591 - 72,591 - - 68,562 68,562 725,909 191,411 - 917,320 (46,334) (23,901) - (70,235) 1,194,974 1,176,865 52,835 2,424,674 582,756 $(1,298,573) $ 5,008,733 $ 23,087 $ 3,733,247 $ (956,994) $ - $ - $ 4,560,732 $ 4,560,732 $ 39 CITY OF RANCHO CUCAMONGA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2017 Private - Purpose Trust Fund Successor Agency Agency of the Funds Former RDA Assets: Cash and investments $ 20,355,203 $ 23,351,220 Receivables: Accounts 219,888 - Taxes 71,307 - Accrued interest 19,681 - Developer loans - 11,342,596 Prepaid bond insurance - 1,694,563 Advances to City - 3,953,624 Restricted assets: Cash and investments with fiscal agents 4,022,689 13,317 Total Assets $ 24,688,768 40,355,320 Deferred Outflows of Resources: Deferred charge on refunding 2,716,427 Total Deferred Outflows of Resources 2,716,427 Liabilities: Accounts payable $ 88,458 - Accrued liabilities 35,794 - Accrued interest - 4,944,920 Deposits payable 8,087,883 - Payable to trustee 16,314,504 - Due to external parties/other agencies 162,129 - Long-term liabilities: Due in one year - 11,710,233 Due in more than one year - 309,877,839 Total Liabilities $ 24,688,768 326,532,992 Deferred Inflows of Resources: Deferred charges on refunding 2,058,867 Total Deferred Inflows or Resources 2,058,867 Net Position: Held in trust for other purposes (285,520,112) Total Net Position $ (285,520,112) See Notes to Financial Statements 40 CITY OF RANCHO CUCAMONGA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2017 Additions: Taxes Interest and change in fair value of investments Total Additions Deductions: Bond issuance costs Contractual services Interest expense Depreciation expense Contributions to City Total Deductions Special Item - Loss on disposition of capital assets Changes in Net Position Net Position: Beginning of year Net Position - End of the Year See Notes to Financial Statements 41 Private - Purpose Trust Fund Successor Agency of the Former RDA $ 29,872,808 66,396 29,939,204 834,188 1,317,677 13,508,870 1,651,930 807,208 18,119,873 (38,257,705) (26,438,374) (259,081,738) $ (285,520,112) THIS PAGE INTENTIONALLY LEFT BLANK 42 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 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. 43 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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. 44 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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. The primary revenue sources, which have been susceptible to accrual by the City, are real and personal property tax, other local taxes, franchise fees, forfeitures and penalties, motor license fees, rents and concessions, interest revenue, and state and Federal grants and subventions. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City's fiduciary funds consist of 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 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. 45 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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 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. 46 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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. 47 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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. Investments in the PARS Public Agencies Post -Employment Benefits Trust are held for the purpose of rate stabilization of future pension obligations. The trust is a Section 115 irrevocable trust. The investments are reported at fair value. 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 48 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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, the net difference between projected and actual earnings on pension plan investments and for differences in actual contributions versus the proportionate share of the risk pool's contributions 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, 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. 49 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Sick leave is payable when an employee is unable to work because of illness. For City employees, those who terminate their employment after five years of continuous service and have at least 50% of five years sick leave accrued on the books upon termination may be paid for 120 hours of the accrued leave. For Fire District employees, sick leave may be accumulated indefinitely or an employee with ten or more years of service is eligible to convert unused sick leave to vacation in accordance with the following and with any remainder of hours to still remain unused sick time: Upon service retirement of a public safety employee, the option exists to sell back up to one-half of total accumulated sick time or have the time credited toward service in accordance with the Public Retirement Law. All unused sick leave is forfeited upon termination, other than for normal retirement. Long -Term Obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance cost, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses. 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. 50 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. 50 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 1: Organization and Summary of Significant Accounting Policies (Continued) • 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. The City Council, as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by the adoption of a resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently. Fund balance commitments were as follows: Chanaes in Economic Circumstances The City's General Fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the City General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the Fire District's operating budget for the upcoming fiscal year. The specific uses of this commitment include: 1) the declaration of a state or federal state of emergency or a local emergency as defined in Rancho Cucamonga Municipal Code Section 2.36.020; or 2) a change in economic circumstances in a given fiscal year that results in revenues to the City/Fire District being insufficient to cover expenditures for one or more fiscal years. The City Council/Fire Board may, by the affirming vote of four members, change the amount of this commitment and/or the specific uses of these monies. City Facilities Capital Repair The City's General Fund balance committed for City facilities capital repair and property acquisition is established at a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for governmental activities. 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. 51 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Workina Caoital The City's General Fund balance committed for Working Capital is established at a goal of a minimum of 5% of the City's General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for Working Capital is established at a goal of a minimum of 50% of the District's operating budget for the upcoming fiscal year. Self -Insurance The City's General Fund balance and the Fire District's fund balance committed for payment of 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. 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. 52 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 1: Organization and Summary of Significant Accounting Policies (Continued) RC Sports Center Vehicle and Equipment Replacement The City's General Fund balance committed for the future replacement and repair of vehicles and equipment for the new RC Sports Center. This reserve is established at a minimum goal of 105% of the cost of the vehicles and equipment for the new Center. Amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. Pursuant to the City's fund balance policy established by the City Council by resolution, it has delegated the authority to assign amounts to be used for specific purposes to the City Manager or Finance Director for the purpose of reporting these amounts on the annual financial statements. Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. The City considers restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. Net Position In the governmental -wide financial statements and proprietary fund financial statements, net position is classified as follows: Net Investment in Capital Assets — This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Position — This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Position — This amount is all net position that do not meet the definition of "net investment in capital assets" or "restricted net position." 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. 53 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Property Tax Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31. Functional Classifications Expenditures of the governmental funds are classified by function. Functional classifications are defined as follows: • General Government includes legislative activities, City Clerk, City Attorney, City Manager as well as management or supportive services across more than one functional area. • Public Safety - Police includes those activities which involve police protection. • Public Safety - Fire Protection includes activities of the Fire District which involve the protection of people and property from fire as well as emergency preparedness. • Public Safety - Animal Center includes those activities which involve animal care and services. • Community Development includes those activities which involve planning and redevelopment, as well as building and safety. • Community Services includes activities which provide recreation, cultural and educational services. • Engineering and Public Works includes all maintenance, engineering and capital improvements which relate to streets, parks, flood control and other public facilities. 54 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017: General Fund Fire District Fund Other Governmental Funds b. Deficit Fund Balances or Net Position The following nonmajor funds have a deficit at June 30, 2017: Special Revenue Funds: Pedestrian Grant Proposition 84 - Park Bond Act Energy Efficient & Conservation Block Grant Senior Outreach Grant Safe Routes to School Program Foothill Blvd. Maintenance COPS Secure Our Schools Grant Public Resources Grants Federal Grant Fund - Dreier Emergency Management Performance Grant Homeland Security Capital Projects Funds: Assessment District 86-2 $ 5,239,097 16,447,989 20,589,181 9,883 341 96 5,267 69,183 1,433 54 14,848 54 28 37 41,128 The City expects to eliminate these deficits with anticipated future revenues from grants, deferred payments and reimbursements. 55 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2017, cash and investments were reported in the accompanying financial statements as follows: Governmental activities $ 332,766,238 Business -type activities 17,845,813 Fiduciary funds 47,742,429 Total Cash and Investments $ 398,354,480 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, 2017, the carrying amount of the City's deposits was $31,502,326 and the bank balance was $32,857,915. The $1,355,589 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 56 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017, 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, 2017. All securities were investment grade and were legal under State and City law. As of June 30, 2017, 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, 2017, 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, 2017, the cash and investments held by Bond Trustee are uninsured and uncollateral ized. 57 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017, in accordance with GASB Statement No. 40, if the City has invested more than 5% of its total investments in any one issuer, it is exposed to credit risk. The following investments are considered exposed to credit risk: Federal Farm Credit Bank 20.67% Federal Home Loan Bank 19.94% Federal National Mortgage Association 33.70% 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, 2017, the City had the following investments and original maturities: Investments: Local Agency Investment Fund Federal Governmental Agencies Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mortgage Corp. Federal National Mortgage Assoc. Municipal Bonds Corporate Bonds US Treasury Money Market Restricted Investments: Mutual Fund Investments with Fiscal Agents: Money Market Funds 6,032,645 6,032,645 4,724,237 - - - 4,724,237 $ 76,799,852 $ 53,318,090 $ 128,373,726 $ 108,360,486 $ 366,852,154 58 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 $ 42,119,729 $ - $ - $ - $ 42,119,729 2,300,757 23,473,349 24,396,877 23,422,492 73,593,475 6,592,555 9,992,752 21,232,434 33,184,776 71,002,517 - - 4,970,738 4,118,623 9,089,361 4,000,664 9,978,175 63,452,534 42,587,580 120,018,953 1,884,965 5,363,959 9,324,053 - 16,572,977 - 4,509,855 4,997,090 5,047,015 14,553,960 6,496,698 - - - 6,496,698 2,647,602 - - - 2,647,602 6,032,645 6,032,645 4,724,237 - - - 4,724,237 $ 76,799,852 $ 53,318,090 $ 128,373,726 $ 108,360,486 $ 366,852,154 58 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017: Level Investments by fair value level Totals 1 2 3 Local Agency Investment Fund $ 42,119,729 $ 29,062,613 $ 13,057,116 $ - Federal Governmental Agencies Federal Farm Credit Bank 73,593,475 73,593,475 - - Federal Home Loan Bank 71,002,517 71,002,517 - Federal Home Loan Mortgage Corporation 9,089,361 9,089,361 - Federal National Mortgage Association 120,018,953 120,018,953 - Municipal Bonds 16,572,977 - 16,572,977 - Corporate Bonds 14,553,960 - 14,553,960 - US Treasury 6,496,698 6,496,698 - Money Market 2,647,602 2,647,602 - Restricted Investments Mutual Fund 6,032,645 - 6,032,645 - Totals 362,127,917 $ 311,911,219 $ 50,216,698 $ - Investments measured at amortized cost Cash with Fiscal Agents Money Market Funds 4,724,237 Total Investments $ 366,852,154 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, 2017: 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, 2017, the outstanding balance amounts to $2,813,901, including accrued interest of $16,783. Accrued interest is offset by deferred revenue. 59 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017, the advances paid against this line of credit amount to $40,457,658 and accrued interest amounts to $3,107,301 for a total of $43,564,959. 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, 2017, advances paid against this line of credit amounts to $21,638,113 and accrued interest amounts to $4,508,727 for a total balance of $26,146,840. 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, 2017, the advances paid against this line of credit amounted to $9,000,000 and accrued interest amounts to $2,793,008 for a total of $11,793,008. 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 .E CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017, the advances paid against this line of credit amounted to $6,499,910 and accrued interest amounts to $866,415 for a total of $7,366,325. 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 20078. 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, 2017, the advances paid against this line of credit amounted to $2,084,084 and accrued interest amounts to $571, for a total of $2,084,655. 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, 2017, the advances paid against this line of credit amounted to $25,868,858, and accrued interest amounts to $4,630,248, for a total of $30,499,106. 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 61 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017, the outstanding balance amounts to $9,977,432, including accrued interest of $4,048,251. 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, 2017, the outstanding balance amounts to $4,274,400 with no interest due. 10. On July 11, 2014, the City entered into a loan agreement with 7418 Archibald LLC ("Developer") in the amount of $42,913 ("City Predevelopment Loan"), pursuant to certain Acquisition, Disposition, Development and Loan Agreement dated February 19, 2014, between Developer and the City (the "ADDLA"), to develop a 60 -unit affordable senior housing project at 7418 Archibald Avenue, referred to as Villa Pacifica 11. The interest of the loan is zero percent (0%) per annum. The principal and any interest due under this Note shall be repaid or forgiven as set forth in the ADDLA, as amended by a first Implementation and Amendment to Acquisition, Disposition, Development and Loan Agreement dated February 17, 2016 between the Borrower's predecessor -in -interest and City and a Second Implementation and Amendment to Acquisition, Disposition, Development and Loan Agreement dated April 1, 2017. The loan may be prepaid in full or in part, at any time without penalty or premium. On April 1, 2017, the City entered into a Promissory Note Secured By Deed of Trust with Villa Pacifica II LP ("Borrower"), not to exceed the sum of $8,683,821 consisting of the existing Predevelopment Loan of $42,913 made by City to Developer, a $2,880,000 purchase money loan in connection with the acquisition of land from City, and $2,760,908 as a construction loan that is being partially disbursed on the date of the closing for City impact fees and to reimburse Villa Pacifica II LP for construction costs accrued prior to the date of the loan, and a permanent loan of up to $3,000,000 ("Perm Loan Principal") to be disbursed as described in the ADDLA from Villa Pacifica I Funds actually received by City under the Villa Pacifica I Note. The term of the loan is 55 years, with simple interest accruing at 3% per annum on the outstanding principal balance. Payment of principal and interest is 50% of the Residual Receipts, with payments credited toward accrued interest and then to outstanding principal, on an annual basis on June 1 of each calendar year. As of June 30, 2017, the advances paid against this line of credit amounted to $5,218,388 of this Promissory Note Secured by Deed of Trust ("Note") (representing the $2,880,000 purchase money loan, $42,913 predevelopment loan, and $2,295,475 of 62 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 4: Notes and Loans Receivables (Continued) the construction loan described above) and accrued interest amount to $35,497, for a total amount of $5,253,885. 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, 2017, the outstanding balance amounts to $3,460,708 with no interest due. Total notes and loans receivables for governmental activities at June 30, 2017, including accrued interest of $20,006,800, amounted to $147,235,219. Note 5: Capital Assets Governmental activities capital assets for the year ended June 30, 2017, was as follows: 63 Transfers to Transfers from Fiber Optic Beginning Successor Network Ending Balance Increases Decreases Transfers Agency Enterprise Fund Balance Governmental Activities: Capital assets, not being depreciated: Land $ 91,606,787 $ $ $ $ 1,602,929 $ $ 93,209,716 Right of way 237,064,679 - 237,064,679 Construction -in -progress 48,541,123 22,835,286 (7,396,537) 22,657 64,002,529 Total Capital Assets, Not Being Depreciated 377,212,589 22,835,286 (7,396,537) 1,625,586 394,276,924 Capital assets, being depreciated: Building Improvements 120,586,812 27,810 2,899,443 47,820,844 171,334,909 Improvement other than buildings 35,161,264 385,655 (36,104) 2,408,690 1,059,893 38,979,398 Equipment and vehicles 33,725,845 5,689,387 (1,616,261) 177,668 9,384,561 47,361,200 Furniture and fixtures 1,843,890 476,557 47,092 1,393,070 3,760,609 Infrastructure 465,439,644 5,114,333 (977,603) 1,863,644 - (5,796,983) 465,643,035 Intangible 3,276,888 - - 51,974 3,328,862 Total Capital Assets, Being Depreciated 660,034,343 11,693,742 (2,629,968) 7,396,537 59,710,342 (5,796,983) 730,408,013 Less accumulated depreciation: Building improvements 38,930,724 3,289,721 - 12,524,345 54,744,790 Improvement other than buildings 11,836,638 1,543,103 (14,442) 333,735 13,699,034 Equipment and vehicles 27,724,763 1,833,884 (1,616,259) 8,785,358 36,727,746 Furniture and fixtures 1,668,326 72,720 1,382,811 3,123,857 Infrastructure 215,646,670 8,067,634 (568,271) - (1,236,251) 221,909,782 Intangible 1,849,815 242,481 51,974 2,144,270 Total Accumulated Depreciation 297,656,936 15,049,543 (2,198,972) - 23,078,223 (1,236,251) 332,349,479 Total Capital Assets, Being Depreciated, Net 362,377,407 (3,355,801) (430,996) 7,396,537 36,632,119 (4,560,732) 398,058,534 Governmental Activities Capital Assets, Net $ 739,589,996 $ 19,479,485 $ (430,996) $ - $ 38,257,705 $ (4,560,732) $ 792,335,458 63 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government $ 370,759 Public safety - police 614,812 Public safety - fire protection 962,909 Engineering and public works 9,871,105 Community development 68,043 Community services 2,084,234 Internal Service 1,077,681 Total Governmental Activities $15,049,543 Business -type activities capital assets for the year ended June 30, 2017, was as follows: Business -Type Activities: Capital assets, not being depreciated: Land Construction -in -progress Total Capital Assets, Not Being Depreciated Capital assets, being depreciated: Building improvements Improvement other than buildings Equipment and vehicles Furniture and fixtures Infrastructure Intangible Total Capital Assets, Being Depreciated Less accumulated depreciation: Building improvements Improvement other than buildings Equipment and vehicles Furniture and fixtures Infrastructure Intangible Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Business -Type Activities Capital Assets, Net 21,260,338 1,250,531 20,385,927 (979,212) 1,236,251 23,747,120 4,560,732 23,967,447 $ 28,183,314 $ (309,677) $ - $ 4,560,732 $ 32,434,369 64 Transfer from Beginning Governmental Ending Balance Increases Decreases Activites Balance $ 5,451,015 $ - $ - $ $ 5,451,015 2,346,372 669,535 3,015,907 7,797,387 669,535 - 8,466,922 17,225,973 - - 17,225,973 3,852,304 5,973 - 3,858,277 623,148 - - 623,148 6,004 - - 6,004 19,912,978 265,346 5,796,983 25,975,307 25,858 - - 25,858 41,646,265 271,319 - 5,796,983 47,714,567 9,907,654 431,198 - - 10,338,852 3,798,101 2,794 - 3,800,895 488,162 14,714 - 502,876 6,004 - - 6,004 7,034,559 801,825 1,236,251 9,072,635 25,858 - - 25,858 21,260,338 1,250,531 20,385,927 (979,212) 1,236,251 23,747,120 4,560,732 23,967,447 $ 28,183,314 $ (309,677) $ - $ 4,560,732 $ 32,434,369 64 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Business -Type Activities: Sports Complex $ 433,992 Municipal Utility 816,539 Total Business -Type Activities $ 1,250,531 Note 6: Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2017 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 Internal Service Fund Total $ 456,275 $ 72,086 $ 528,361 30,000 - 30,000 $ 486,275 $ 72,086 $ 558,361 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, 2017. Advances To/From Other Funds Funds Advances from Other Funds Fire Sports District Complex Total Advances to Other Funds: General $ 2,183,704 $ 3,056,366 $ 5,240,070 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 CaIPERS. 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, 2017, the outstanding balance amounted to $2,183,704. 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, 2017, the outstanding balance amounted to $3,056,366. 65 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 6: Interfund Receivable, Payable and Transfers (Continued) Interfund Transfers Funds Transfers in Transfers Out: Nonmajor Internal General Municipal Governmental Service Fund Utility Funds Funds Total General Fund $ - $ 1,207,090 $ 350,170 $ - $ 1,557,260 Fire District - - - 3,760 3,760 Sport Complex 1,429,627 - - - 1,429,627 Internal Service Funds 564,160 - 30,000 - 594,160 Nonmajor Funds 780,050 - 105,100 - 885,150 Total $ 2,773,837 $ 1,207,090 $ 485,270 $ 3,760 $ 4,469,957 The General Fund transferred $1,429,627, $564,160, and $780,050 to the Sports Complex Fund, the Internal Service Funds and Nonmajor Funds, respectively, to cover the budgeted amounts. The Municipal Utility transferred $1,207,090 to the General Fund to cover the cost of operations. Nonmajor Funds transferred $350,170 to the General Fund, $30,000 to the Internal Service Funds, and $105,100 to other Nonmajor Funds for the purpose of providing financial resources to cover expenditures. 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, 2017: Beginning Balance Capital Leases Dell Financial Services $ 62,154 Government Capital Corp. 808,461 Xerox - Internal Service 123,028 Xerox - Governmental Funds 40,660 Total Capital Leases 1,034,303 Advances from Ending Due Within Additions Repayments Balance One Year $ - $ 62,154 $ - $ - - 397,751 410,710 410,710 - 66,268 56,760 56,760 - 21,901 18,759 18,759 548,074 486,229 486,229 Successor Agency 3,953,624 - - 3,953,624 - Claims and judgments payable 3,118,846 2,795,835 1,500,198 4,414,483 1,776,045 Accrued employee benefits 7,957,756 5,509,065 5,862,967 7,603,854 5,619,200 Total $ 16,064,529 $ 8,304,900 $ 7,911,239 $ 16,458,190 $ 7,881,474 A description of individual components of long-term debt outstanding as of June 30, 2017, is as follows: CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 7: Long -Term Debt Obligations (Continued) 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 1St of each year with the final payment due February 2017. The interest rate is fixed at 2.08°/x. At June 30, 2017, the capital lease was paid in full. 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 each July with the final payment due July 2017. The interest rate is fixed at 3.22%. At June 30, 2017, the outstanding amount due was $410,710. The calculation of the present value of the future lease payments is as follows: Year Ending June 30 2018 $ 424,092 Less: Amount representing interest (13,382) Total $ 410,710 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, 2017, the outstanding amount due was $75,519. The calculation of the present value of the future lease payments is as follows: Year Ending June 30 2018 $ 76,562 Less: Amount representing interest (1,043) Total $ 75,519 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, 2017, the outstanding amount of the advance was $3,953,624. 67 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017 were as follows: City of Rancho Cucamonga: Assessment District 93-1 Special Tax Refunding Bond, Series 2015: Community Facilities District No. 2000-01 Community Facilities District No. 2000-02 Community Facilities District No. 2001-01 Series A Community Facilities District No. 2001-01 Series B Community Facilities District No. 2006-01 Community Facilities District No. 2006-02 Community Facilities District No. 2000-03 Community Facilities District No. 2003-01 Series A Community Facilities District No. 2003-01 Series B Community Facilities District No. 2004-01 Rancho Cucamonga Redevelopment Agency: Multi -Family Housing Revenue Bond: Series 1997A Total Outstanding Amount at June 30, 2017 1,170, 000 416,000 3,857,000 6,929,000 671,000 3,622,000 2,165,000 6,812,000 13,340,000 2,599,000 31,638,000 2,108,412 $ 75,327,412 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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 (CaIPERS). 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. CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 9: Pension Plan Obligations (Continued) Citv 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 but prior to and after minimum 50 yrs July 3, 2011 January 1, 2013 Monthly benefits, as a % of 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 15.845% 15.845% 15.845% 12.018% contribution rates Hire date Benefit formula Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates Tier 1 * Tier 2 * PEPRA Prior to July 9, 2011 July 9, 2011 but prior to January 1, 2013 2.5%@55 2%@55 5 years service 5 years service monthly for life monthly for life minimum 50 yrs minimum 50 yrs 2.000% - 2.500%, 50 1.426% - 2.418%, yrs - 55+ yrs, 50 yrs - 63+ yrs, respectively respectively 8.000% 7.000% 18.091% 8.377% 70 January 1, 2013 and after 2% @ 62 5 years service monthly for life minimum 52 yrs 1.000% - 2.500%, 52 yrs - 67+ yrs, respectively 6.250% 6.589% CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 9: Pension Plan Obligations (Continued) Fire District Safetv Cost-Sharina Rate Plans rates * Plan is closed to new entrants Employees Covered — City Miscellaneous Plan As of the valuation date of June 30, 2015, the following employees were covered by the benefit terms of the Plan: Description Active members Transferred members Terminated members Retired members and beneficiaries Total Number of Members 457 189 233 236 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, 2017, the employer contributions recognized as a reduction to the net position liability for all the Plans was $12,571,637. 71 Tier 1 * Tier 2 * PEPRA Hire date Prior to July 9, 2011 January 1, 2013 July 9, 2011 but prior to January and after 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 eligible 3.000%, 50+ yrs 2.400% - 3.000%, 2.000% - 2.700%, compensation 50 yrs - 55+ yrs, 50 yrs - 57+ yrs, respectively respectively Required employee contribution 9.000% 9.000% 11.500% rates Required employer contribution 30.852% 16.656% 12.082% rates * Plan is closed to new entrants Employees Covered — City Miscellaneous Plan As of the valuation date of June 30, 2015, the following employees were covered by the benefit terms of the Plan: Description Active members Transferred members Terminated members Retired members and beneficiaries Total Number of Members 457 189 233 236 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, 2017, the employer contributions recognized as a reduction to the net position liability for all the Plans was $12,571,637. 71 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2016, using an annual actuarial valuation as of June 30, 2015 rolled forward to June 30, 2016 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, 2016, the total pension liability was determined by rolling forward the June 30, 2015 total pension liability. The June 30, 2015 and the June 30, 2016 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table (1) Post Retirement Benefit Increase Entry Age Normal in accordance with the requirements of GASB Statement No. 68 7.65% 2.75% Varies by Entry Age and Service 7.65% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Derived using CaIPERS' Membership Data for all Funds Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1) The mortality table used was developed based on Cal PERS' specific data. The table includes 20 years ofmortaIityimprovements 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, 2015 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 CaIPERS' website under Forms and Publications. 72 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2015. New * An expected inflation of 2.5% used for this period **An expected inflation of 3.0% used for this period 73 Strategic Real Return Real Return Asset Class Allocation Years 1-10* Years 11+** Global Equity 51.00% 5.25% 5.71 % Global Debt Securities 20.00% 0.99% 2.43% Inflation Assets 6.00% 0.45% 3.36% Private Equity 10.00% 6.83% 6.95% Real Estate 10.00% 4.50% 5.13% Infrastructure and Forestland 2.00% 4.50% 5.09% Liquidity 1.00% -0.55% -1.05% * An expected inflation of 2.5% used for this period **An expected inflation of 3.0% used for this period 73 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 9: Pension Plan Obligations (Continued) 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. Balance at: 6/30/2015 (Valuation Date) Changes Recognized for the Measurement Period: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference between Expected and Actual Experience Changes of Assumptions Contributions from the Employer Contributions from Employees Net Investment Income Benefit Payments including Refunds of Employee Contributions Administrative Expense Net Changes During 2015/16 Balance at: 6/30/2016 (Measurement Date) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Assets) (a) (b) (c)=(a)-(b) $ 181,218,179 $ 149,724,028 $ 31,494,151 4,193, 507 13, 651, 750 (1,557,585) - - 3,745,698 2,120,443 782,082 (6,606,205) (6,606,205) - (91,249) 9,681,467 (49,231) $ 190, 899, 646 $ 149, 674, 797 4,193, 507 13,651,750 (1,557,585) (3,745,698) (2,120,443) (782,082) 91,249 9,730,698 $ 41,224,849 As of June 30, 2017, the Fire District reported net pension liabilities for its proportionate shares of the net pension liability of each rate Plan of $31,817,167. The Fire District's net pension liability for each rate Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the rate Plans is measured as of June 30, 2016, and the total pension liability for each rate Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2015, rolled forward to June 30, 2016, using standard update procedures. The Fire District's proportion of the net pension liability was based on a projection of the Fire District's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The Fire District's proportionate share of the net pension liability for each rate Plan as of June 30, 2015 and 2016, was as follows: Cost -Sharing Rate Plan Proportion - June 30, 2015 0.61850% Proportion - June 30, 2016 0.63595% Change - Increase (Decrease) 0.01745% 74 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 9: Pension Plan Obligations (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan's as of the measurement date, calculated using the discount rate of 7.65 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower (6.65 percent) or 1 percentage -point higher (8.65 percent) than the current rate: Discount Rate - 1 % Current Discount Discount Rate +1 % 6.65% 7.65% 8.65% Net Pension Liability $ 116,836,750 $ 73,042,016 $ 37,038,964 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, 2016 (the measurement date), the City incurred a pension expense of $7,082,075 for all Plans. As of June 30, 2017, the following were the reported deferred outflows of resources and deferred inflows of resources related to all pension plans: Current year contributions that occurred after the measurement date of June 30, 2016 Change of Assumption Difference between Expected and Actual Experiences Net Difference between Projected and Actual Earnings on Pension Plan I nvestments Adjustment due to differences in proportions Difference in proportionate share Total 75 Deferred Outflows Deferred Inflows of of Resources Resources $ 7,703,763 $ - - (2,873,872) 7,815 (3,496,197) 13, 573, 798 1,274,867 (113,473) 75,052 (34,911) $ 22,635,295 $ (6,518,453) CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 9: Pension Plan Obligations (Continued) Contributions subsequent to the measurement date in the amount of $7,703,763 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, 2018. 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 2017 $ (187,731) 2018 (104, 526) 2019 5,269,210 2020 3,436,126 Note 10: PARS Retirement Enhancement Plan 1. General Information About the Plan Plan Description The City of Rancho Cucamonga sponsors the PARS Retirement Enhancement Plan, an agent multiple -employer defined benefit pension plan. The Plan provides pension benefits to miscellaneous members (Tier 1) and city council members (Tier 2). Benefits are equal to a percentage of highest pay multiplied by years of service, with the percentage varying by retirement age based on a 3% at 60 target offset by CalPERS 2.5% at 55 formula. Sample rates are as follows: Age 55 56 57 58 59 60+ Tier 1 and Tier 2 0.000% 0.100 0.200 0.300 0.400 0.500 The City and the Fire District have the right to amend, modify or terminate the plan at any time. Separate audited financial statements are not prepared. Benefits are increased by a 2% annual cost of living adjustment after retirement. There are no employee contributions for either tier. 76 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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 Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates *This plan is closed to new entrants Employees Covered PARS benefit factor 10 years service monthly for life minimum 56 yrs N/A - not based on % of eligible compensation 0.000% 1.300% As of the valuation date of June 30, 2016, the following employees were covered by the benefit terms of the Plan: Description Active members Retired members Total Contribution Description Number of Members M. .I 376 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, 2016 actuarial valuation which positively impacted the actuarially determined rate. For the year ended June 30, 2017, the employer contributions recognized as a decrease to the net pension liability was $307,590. 77 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2016, using an annual actuarial valuation as of June 30, 2016. 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, 2016 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table Post Retirement Benefit Increase Entry Age, Level Percent of Payroll 5.75% at June 30, 2016 2.75% at June 30, 2016 Aggregate - 3.00% 5.75% Net of Pension Plan Investment and Administrative Expenses for the fiscal year ending 2016; rounded to the nearest 0.25% CalPERS 1997-2011 Experience Study Base - CalPERS 1997-2011 Experience Study All other actuarial assumptions used in the June 30, 2016 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 5.75%. The expected long-term rate of return on investments was updated from 6.25% to 5.75%. Assumed future administrative expenses of 0.30% of plan assets and future contributions based on the funding policy will be made at contractually required rates, actuarily determined. Based on these assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments. 78 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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. Asset Class Total Fixed Cash Global Equities Changes in the Net Pension Asset New Strategic - Allocation Real Return 45.0% 1.5% 5.0% 0.1% 50.0% 4.8% The following table shows the changes in net pension asset recognized over the measurement period. Balance at: 6/30/2015 Changes Recognized for the Measurement Period: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference between Expected and Actual Experience Changes of Assumptions Contributions from the Employer Net Investment Income Benefit Payments including Refunds of Employee Contributions Administrative Expenses Net Changes During 2015/16 Balance at: 6/30/2016 Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) (a) (b) (c)=(a)-(b) $ 23, 965, 000 $ 28, 216, 000 $ (4,251,000) 716,000 - 716,000 1,523,000 - 1,523,000 538,000 - 538,000 (110,000) - (110,000) 2,100,000 - 2,100,000 - 312,000 (312,000) - 21,000 (21,000) (631, 000) (631, 000) - - (35,000) 35,000 4,136, 000 (333, 000) 4,469,000 $ 28,101, 000 $ 27, 883, 000 $ 218,000 Sensitivity of the Net Pension Asset to Changes in the Discount Rate The following presents the net pension asset of the Plan as of the measurement date, calculated using the discount rate of 5.75 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower (4.75 percent) or 1 percentage -point higher (6.75 percent) than the current rate: Discount Rate - 1 % Current Discount Rate Discount Rate +1 % (4.75%) (5.75%) (6.75%) Plan's Net Pension Liability (Assets) $ 4,718,000 $ 218,000 $ (3,439,000) 79 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 10: PARS Retirement Enhancement Plan (Continued) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period, the net pension asset was $4,251,000. For the measurement period ending June 30, 2016, the City incurred a pension expense of $1,547,000 for the Plan. As of June 30, 2017, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows Deferred Inflows of Resources of Resources Current year contributions that occurred after the measurement date of June 30, 2016 $ 278,740 $ - Difference between Expected and Actual Experience - (96,000) Change of assumptions 1,828,000 Net Difference between Projected and Actual Earnings on Pension Plan I nvestments 1,370,000 - Total $ 3,476,740 $ (96,000) $278,740 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, 2018. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year ended June 30: Deferred Outflows/(Inflows) of Resources 2018 $ 488,000 2019 489,000 2020 819,000 2021 606,000 2022 258,000 Thereafter 442,000 0 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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 CalPERS at Lincoln Plaza North 400 Q Street, Sacramento, California 95814 or by visiting the CalPERS 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 2016/17, the City paid $784,987 in premiums for retiree insurance and was reimbursed $764,987 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) $ 281,000 Interest in net OPEB asset (988,830) Adjustment to ARC 1,723,954 Annual OPEB cost 1,016,124 Contributions: Contributions made 784,987 Implicit rate subsidy benefit payments 261,000 Reimbursement of contributions made (764,987) Decrease/(Increase) in net OPEB asset 735,124 Net OPEB obligation / (asset) June 30, 2016 (15,212,763) Net OPEB obligation / (asset) June 30, 2017 $ (14,477,639) 81 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 11: Other Post -Employment Benefits (Continued) The contribution rate of 2.7% is based on the ARC of $281,000, 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) 6/30/2015 $ 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) 6/30/2017 1,016,124 1,045,987 102.9% 764,987 (14,477,639) * 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) Actuarial valuation is performed every other year. 82 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. 82 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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 and the Fire District are a members 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 and Fire District have a $500,000 retention limit for liability, which is similar to a deductible, with the Authority being responsible for losses above that amount up to $1,000,000. The Authority carries an excess commercial liability policy of $25,000,000 in excess of its $1,000,000 retention limit to cover losses through affiliated risk management authorities. The Authority also provides one billion dollars aggregate per occurrence property coverage to its members with such coverage provided by purchased insurance. Liabilities of the City and the Fire District are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (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. 83 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 12: Summary Disclosure of Self -Insurance Contingencies (Continued) The City and Fire District have a $250,000 retention limit for workers compensation. The Authority covers workers' compensation claims in excess of the $250,000 retention limit up to $500,000. The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The City pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority's operating results. Effective July 1, 2015, the Fire District became a member of the Public Agency Risk Sharing Authority of California (Authority) for its workers compensation insurance and concurrently separated from the Public Agency Self -Insurance System (PASIS) of San Bernardino County. The Fire District will maintain reserves to cover its June 30, 2017 estimated claims liability for workers compensation up to its self-insured retention of $250,000. Claims in excess of the self-insured amount will be covered by California State Association of Counties- Excess Insurance Authority. All workers compensation coverage from July 1, 2015 forward will be provided by the Authority. Under the program, the Fire District has a $250,000 retention limit for workers compensation. The Authority covers workers compensation claims in excess of the $250,000 retention limit up to $5,000,000. The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The Fire District pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority's operating results. Financial statements of the 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 $7,584,947 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: 84 Ending Balance $ 3,118,846 4,414,483 Current Year Claims Fiscal Year Beginning and Changes in Claim Ended Balance Estimates Payments June 30, 2016 $ 3,419,806 $ 1,260,434 $ (1,561,394) June 30, 2017 3,118,846 2,795,835 (1,500,198) 84 Ending Balance $ 3,118,846 4,414,483 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 13: Commitments and Contingencies In March 2016, a lawsuit was filed against the City alleging that the at -large election system was in violation of the California Voting Rights Act. The City is in the process of settling the dispute whereby the City will be responsible for plaintiff attorney fees. Management and legal counsel are unable to reasonable estimate a liability at this time. The following schedule summarizes the major contractual commitments by funds as of June 30, 2017: Fund / Proiect Name General Fund Sports Center Relocation Park Development Sports Center Relocation Transportation Hellman at Metrolink Track Widening Traffic Signal: 6th at Rochester Gas Tax Local Street Rehabilitation Measure I Base Line: Milliken to Day Creek Rehabilitation Hillside: Archibald to Canistel Rehabilitation Citywide Infrastructure Improvement Sports Center Relocation Fire District Station 172 Relocation Training Facility Equipment and Vehicle Replacement Sports Center Relocation Expenditures Contract to date as of Amount June 30, 2017 Remaining Commitments $ 2,500,000 $ 170,056 $ 2,329,944 4,992,593 583,930 4,408,663 1,974,340 32,803 1,941,537 948,470 12,893 935,577 843,040 400 842,640 1,100, 000 288,554 811,446 850,000 48,831 801,169 7,000,000 1,273,569 5,726,431 1,453,500 88,234 1,365,266 25, 073, 030 10,159, 960 14, 913, 070 750,000 - 750,000 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. 85 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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 Cash and investments with fiscal agent 0 $ 23,351,220 13,317 $ 23, 364, 537 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017: On July 21, 2003, the Agency entered into a Disposition and Developer Agreement with Victoria Gardens, LLC. The Agency conveyed 147 acres generally located north of Foothill Boulevard, west of the 1-15 Freeway and east of Day Creek Road in the City of Rancho Cucamonga in order for the Developer to construct an open air mixed use complex. The Agency conveyed the site to the Developer upon the execution of a promissory note to pay a cumulative sum of $13,000,000 to the Agency over a term of thirty (30) years. The note stipulates the following payment structure: (1) the Developer shall make annual payments to the Agency equal to the amount required to amortize the excess return at the Agency's cost of funds; (2) the Developer shall pay the Agency fifteen percent (15%) of the difference between the net sale proceeds and the higher of the project cost, or the initial gross proceeds of any loan; and (3) the Developer shall pay the Agency fifteen percent (15%) of any positive net refinance proceeds. As of June 30, 2017, the outstanding balance was $11,342,596. c. Capital Assets An analysis of capital assets as of June 30, 2017, follows: *Refer to Footnote 16 - Special Item for details of asset transfers to the City and Fire. 87 Beginning Transfers Transfers Ending Balance Increases Decreases to Fire* to the City * Balance Capital assets, not being depreciated: Land $ 1,602,929 $ $ - $ (4,900) $ (1,598,029) $ Construction -in -progress 22,656 (22,656) Total Capital Assets, Not Being Depreciated 1,625,585 (4,900) (1,620,685) Capital assets, being depreciated: Building improvements 47,820,843 (3,758,796) (44,062,047) Improvement other than buildings 1,059,893 (9,751) (1,050,142) Equipment and vehicles 9,408,209 (23,642) (6,146,595) (3,237,972) Furniture and fixtures 1,393,069 (25,240) (1,367,829) Intangible 51,974 (51,974) Total Capital Assets, Being Depreciated 59,733,988 (23,642) (9,940,382) (49,769,964) Less accumulated depreciation: Building improvements 11,139,441 1,384,903 (1,247,338) (11,277,006) Improvement other than buildings 280,741 52,995 (4,672) (329,064) Equipment and vehicles 8,597,590 211,413 (23,642) (5,955,959) (2,829,402) Furniture and fixtures 1,380,192 2,619 (25,240) (1,357,571) Intangible 51,974 (51,974) Total Accumulated Depreciation 21,449,938 1,651,930 (23,642) (7,233,209) (15,845,017) Total Capital Assets, Being Depreciated, Net 38,284,050 (1,651,930) (2,707,173) (33,924,947) Capital Assets, Net $ 39,909,635 $ (1,651,930) $ $ (2,712,073) $ (35,545,632) $ *Refer to Footnote 16 - Special Item for details of asset transfers to the City and Fire. 87 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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, 2017, follows: Balance Balance Due Within July 1, 2016 Additions Defeasance Repayments June 30, 2017 One Year Bonds Tax Allocation Refunding Bonds - 2007 Issue $ 130,480,000 $ $ 62,020,000 $ 3,565,000 $ 64,895,000 $ 2,255,000 Tax Allocation Refunding Bonds - 2014 Issue 168,675,000 - 6,645,000 162,030,000 6,910,000 Tax Allocation Refunding Bonds - 2016 Issue - 56,860,000 - - 56,860,000 1,885,000 Total Bonds 299,155,000 56,860,000 62,020,000 10,210,000 283,785,000 11,050,000 Developer Loans Bank of New York 9,192,969 605,871 8,587,098 660,233 Total Developer Loans 9,192,969 - - 605,871 8,587,098 660,233 Total $ 308,347,969 $ 56,860,000 $ 62,020,000 $ 10,815,871 292,372,098 $ 11,710,233 Unamortized Premium 29,215,974 Total $ 321,588,072 Tax Allocation Bonds 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. CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 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. On July 20, 2016, the Successor Agency issued Tax Allocation Refunding Bonds, Series 2016 to refund the Series A. The refunding resulted in the recognition of an accounting loss of $2,716,427, however it reduced the total debt service payments by $14 million and an economic gain (the difference between the present values of the debt service payments on the old and new debt) of $11 million. The Taxable Series B Bonds are subject to optional redemption, on any date prior to their maturity. Rating Change: On June 26, 2017, S&P Global Ratings downgraded NPFGC to A from AA-. As a result of the foregoing, S&P downgraded its Long -Term Rating on the Bonds to A+ from AA-. The balance at June 30, premium of $309,250. requirements to maturity June 30, 2017: Year Ending June 30 2017, amounted to $64,895,000 plus unamortized bond The following schedule illustrates the debt service for the 2007 Tax Allocation Refunding Bonds as of Principal Interest 2018 $ 2,255,000 $ 3,984,856 2019 2,380,000 3,847,999 2020 2,530,000 3,694,267 2021 2,685,000 3,530,985 2022 2,855,000 3,357,528 2023-2027 17,205,000 13,777,183 2028-2032 34,985,000 4,577,365 Total $ 64,895,000 $ 36,770,183 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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, 2017, amounted to $162,030,000 plus unamortized bond premium of $21,888,636 and unamortized gain on defeasance of $2,058,867. Rating Change: On April 6, 2017, Fitch Ratings upgraded its Long -Term Rating on the Bonds to AA+ from AA-. The following schedule illustrates the debt service requirements to maturity for the 2014 Tax Allocation Refunding Bonds as of June 30, 2017: Year Ending June 30 Principal Interest 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 8,320,000 6,414,750 2023-2027 48,280,000 25,234,250 2028-2032 61,620,000 11,561,750 2033-2035 14,235,000 355,875 Total $ 162,030,000 $ 73,065,700 M CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 3. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project Area Tax Allocation Refunding Bonds, Series 2016. $56,860,000. These bonds are dated October 5, 2016, and were issued to refinance certain obligations of the Rancho Redevelopment Project Housing Set -Aside Tax Allocation Bonds 2007 Series A. The Bonds will be payable from and secured by, designated property tax revenues (formerly tax increment revenues) related to the Rancho Redevelopment Project, which will consist of moneys deposited, from time to time, in the Redevelopment Property Tax Trust Fund ("RPTTF") established under the Dissolution Act, but exclude those amounts which were, prior to the Dissolution Act, required to be deposited into the Former Agency's Low and Moderate Income Housing Fund to the extent required to pay debt service on existing Housing Obligations. Interest is payable semi-annually on March 1 and September 1, of each year commencing March 1, 2017. The bonds mature in annual installments ranging from $1,615,000 to $10,060,000 starting September 1, 2017 to September 1, 2034, and bear interest ranging from 2% to 5%. The balance at June 30, 2017, amounted to $56,860,000 plus unamortized bond premium of $7,018,088 and unamortized loss on defeasance of $2,716,427. The following schedule illustrates the debt service requirements to maturity for the 2016 Tax Allocation Refunding Bonds as of June 30, 2017: Year Ending June 30 Principal Interest 2018 $ 1,885,000 $ 2,305,100 2019 1,615,000 2,262,025 2020 1,665,000 2,204,500 2021 1,735,000 2,136,500 2022 1,800,000 2,065,800 2023-2027 10,340,000 8,907,250 2028-2032 8,780,000 7,388,400 2033-2035 29,040,000 1,772,600 Total $ 56,860,000 $ 29,042,175 Developer Loans Payable On August 21, 1996, the Agency executed a note payable to Pacific Life Insurance Company (subsequently assigned to Bank of New York) in the amount of $9,411,477. The proceeds of the note were paid directly to Northtown Housing Development Corporation for the development of the Northtown Housing project. The outstanding principal bears interest at 8.78% compounding semi-annually from the date of the note until paid. Interest was added to the principal on each March 15 and September 15 through March 15, 2002, amounting to $4,210,264 in addition to principal. Commencing on September 15, 2002, both principal and interest shall be due and payable semi-annually on March 20 and September 20, of each year through March 2026. The balance at June 30, 2017, amounted to $8,587,098. 91 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) The following schedule illustrates the debt service requirements to maturity for the Bank of New York loan as of June 30, 2017: Year Ending June 30 Principal Interest 2018 $ 660,233 $ 739,767 2019 719,475 680,525 2020 784,030 615,970 2021 854,379 545,621 2022 931,041 468,959 2023-2026 4,637,940 962,060 Total $ 8,587,098 $ 4,012,902 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 $435,263,058 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 $29,872,808 and the debt service obligation on the bonds was $26,314,657. 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, 2017 is $3,246,400. 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. 92 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2017 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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, 2017, the Agency made payments totaling $617,789. Note 15: Net Position and Fund Balance Restatement In April 2017, subsequent to the issuance of the June 30, 2016 financial statements, GASB Implementation Guide No. 2017-1, Implementation Guidance Update -2017 was issued. The guidance clarified the accounting treatment and reporting of pension contributions when multiple trusts are established stating only plan assets accumulated in trusts that directly make benefit payments should be included in the calculation of fiduciary net position for employer reporting. As a result, the beginning governmental activities net position and fund balance needed to be restated by $5,584,468 for contributions made by the City and Fire District to the PARS Post -Employment Benefits Trust Programs during the year ended June 30, 2016. The restatements are to the General Fund and the Fire District for $1,774,000 and $3,810,468, respectively. Note 16: Special Item The Successor Agency received a finding of completion on June 7, 2013. Subsequently, the Department of Finance approved the Long Range Property Management Plan on November 13, 2013. The remaining capital assets are owned and title held by the City or Fire District. This resulted in the transfer of capital assets with a net book value of $38,257,705 to the City and Fire District as of June 30, 2017. 93 THIS PAGE INTENTIONALLY LEFT BLANK 94 REQUIRED SUPPLEMENTARY INFORMATION 95 CITY OF RANCHO CUCAMONGA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2017 Budgetary Comparison Information a. Budget Data General Budaet Policies The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The Council conducts 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. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities. Basis of Budaetin 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, 2017, the following funds had no adopted annual budgets: SB 140 Library Services and Technologies Act Energy Efficient and Conservation Block Grant Senior Outreach Grant Foothill Blvd. Maintenance Cops Secure Our Schools Grant Drink, Drive, Lose Grant Federal Grant Fund — Dreier Assessment District 86-2 CFD 2000-01 South Etiwanda CFD 2003-01 Fund Public Library Bond Act — 2000 CFD 2003-01 Cultural Center 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. 101 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) GENERALFUND YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 as restated $ 112,290,940 $ 112,290,940 $ 112,290,940 $ Resources (Inflows): Taxes 64,595,300 64,473,050 64,297,386 (175,664) Licenses and permits 4,159,220 4,053,930 4,006,360 (47,570) Intergovernmental 545,450 579,550 654,672 75,122 Charges for services 3,558,070 2,881,180 2,895,445 14,265 Use of money and property 1,239,630 1,259,280 612,665 (646,615) Fines and forfeitures 1,095,010 1,057,380 1,169,246 111,866 Contributions 82,660 82,660 120,850 38,190 Miscellaneous 2,935,890 3,352,560 2,682,266 (670,294) Transfers in 1,557,260 1,557,260 1,557,260 - Proceeds from sale of capital asset 50,070 90,000 148,958 58,958 Amounts Available for Appropriations 192,109,500 191,677,790 190,436,048 (1,241,742) Charges to Appropriations (Outflow): General government General overhead 2,572,390 2,864,951 2,281,027 583,924 Personnel overhead 850,960 1,760,860 1,682,689 78,171 City council 128,160 122,280 106,651 15,629 City management 919,890 922,180 865,287 56,893 City clerk 1,940 1,960 1,862 98 Administrative services 274,070 257,740 241,604 16,136 Business licenses 336,250 350,050 348,105 1,945 City facilities 1,156,970 1,165,040 852,702 312,338 Finance 1,413,300 1,434,730 1,291,480 143,250 Innovation and technology 3,660,610 3,500,809 3,233,165 267,644 Personnel 587,890 597,070 523,441 73,629 Procurement 326,850 283,960 242,974 40,986 Risk management 239,950 220,080 163,176 56,904 Treasury management 12,150 13,870 12,620 1,250 Communications 231,540 300,080 219,026 81,054 Records management 490,530 551,348 505,413 45,935 Healthy RC Program 432,990 461,140 427,211 33,929 Public safety - police Sheriff contract services 35,754,790 36,580,970 35,817,386 763,584 Public safety - animal center Animal center 3,135,980 3,123,210 3,007,643 115,567 Community development Planning 1,862,160 2,793,910 2,297,130 496,780 Planning commission 22,080 22,290 17,612 4,678 Community improvement 634,300 611,090 591,044 20,046 Administration 1,078,160 1,039,104 607,994 431,110 Building and safety 2,063,450 1,948,750 1,714,548 234,202 Community services Administration 5,010,190 4,908,006 4,573,566 334,440 Park and recreation commission 4,830 4,830 1,469 3,361 Engineering and public works Engineering administration 509,430 524,540 492,275 32,265 Development management 865,770 826,190 715,112 111,078 NPDES 420,020 354,340 345,025 9,315 Project management 442,400 402,780 368,316 34,464 Traffic management 223,120 182,870 146,798 36,072 Park maintenance 2,975,870 3,119,030 2,877,668 241,362 Vehicle and equipment maintenance 960,260 870,760 759,416 111,344 Facilities maintenance 3,714,280 3,807,670 3,462,510 345,160 Street maintenance 2,798,310 2,830,080 2,585,359 244,721 Capital outlay 5,922,500 7,672,352 7,292,431 379,921 Debt service: Principal retirement 18,010 17,950 9,681 8,269 Interest and fiscal charges 23,160 23,570 23,996 (426) Transfers out 3,549,540 3,009,240 2,773,837 235,403 Contributions to other governments 230,580 230,580 230,580 - Total Charges to Appropriations 85,855,630 89,712,260 83,709,829 6,002,431 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 106,253,870 $ 101,965,530 106,726,219 $ 4,760,689 Encumbrances 5,239,097 Budgetary Fund Balance, June 30 (GAAP Basis) $ 111,965,316 97 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HOUSING SUCCESSOR AGENCY YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Total Charges to Appropriations Budget Amounts Original Final $133,591,281 $ 133,591,281 72,640 104,180 12,000 12,000 133, 675, 921 133, 707, 461 280,850 280,850 6,960,910 2,760,910 7,241,760 3,041,760 Budgetary Fund Balance, June 30 (Budgetary Basis) $126,434,161 $ 130,665,701 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Actual Amounts $133,591,281 Variance with Final Budget Positive (Negative) 1,323,105 1,218,925 85,754 73,754 135,000,140 1,292,679 272,100 8,750 - 2,760,910 272,100 2,769,660 134,728,040 $4,062,339 $134,728,040 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) FIRE DISTRICT YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 as restated Resources (Inflows): Taxes Licenses and permits Charges for services Use of money and property Fines and forfeitures Miscellaneous Transfers in Proceeds from sale of capital asset Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety - fire protection Capital outlay Debt service: Budget Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 75,688,429 $ 75,688,429 $ 75,688,429 $ 37,030,260 37,813,180 37,860,006 46,826 19,880 19,880 13,525 (6,355) 13,820 6,420 1,362 (5,058) 712,620 921,460 653,302 (268,158) 41,700 66,700 80,105 13,405 1,126,180 1,523,280 1,287,669 (235,611) - 3,760 3,760 - - 15,600 15,562 (38) 114,632,889 116,058,709 115,603,720 (454,989) 32,504,630 32,746,034 30,408,249 2,337,785 23,942,350 31,069,536 28,335,153 2,734,383 Principal retirement 690,360 690,210 3,403 686,807 Interest and fiscal charges 115,100 115,250 115,247 3 Total Charges to Appropriations 57,252,440 64,621,030 58,862,052 5,758,978 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 57,380,449 $ 51,437,679 56,741,668 $ 5,303,989 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 16,447,989 $ 73,189,657 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) TOTAL PENSION LIABILITY Service Cost Interest Difference between Expected and Actual Experience Changes in Assumptions Benefit Payments, Including Refunds of Employee Contributions Net Change in Total Pension Liability Total Pension Liability - Beginning Total Pension Liability - Ending (a) PLAN FIDUCIARY NET POSITION Contributions - Employer Contributions - Employee Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Administrative Expense Net Change in Fiduciary Net Position Plan Fiduciary Net Position - Beginning Plan Fiduciary Net Position - Ending (b) Plan Net Pension Liability/(Assets) - Ending (a) - (b) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered -Employee Payroll Plan Net Pension Liability/(Asset) as a Percentage of Covered -Employee Payroll 2015 2016 2017 4,661,973 $ 4,342,707 $ 4,193,507 12,370,506 12,931,479 13,651,750 - (3,882,722) (1,557,585) - (3,352,733) - (5,229,846) (5,847,197) (6,606,205) 11,802,633 4,191,534 9,681,467 165,224,012 177,026,645 181,218,179 $ 177,026,645 $ 181,218,179 $ 190,899,646 3,520,721 $ 3,433,074 $ 3,745,698 2,156,312 2,074,191 2,120,443 21,772,350 3,320,843 782,082 (5,229,846) 22,219,537 124,692,088 $ 146,911,625 (5,847,197) (6,606,205) (168,508) (91,249) 2,812,403 (49,231) 146,911,625 149,724,028 $ 149,724,028 $ 149,674,797 $ 30,115,020 $ 31,494,151 $ 41,224,849 82.99% 82.62% 78.40% 25,819,515 $ 25,082,858 $ 25,682,090 116.64% 125.56% 160.52% (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only three years are shown. Notes to Schedule: Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes). Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer -specific liabilities. These employers should consult with their auditors. Changes of Assumptions: There were no changes of assumptions. 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) Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered -Employee Payroll 2015 2016 2017 $ 3,433,074 $ 3,745,756 $ 4,192,505 (3,433,074) (3,745,756) (4,192,505) $ 25,082,858 $ 25,682,090 $ 26,459,567 Contributions as a Percentage of Covered -Employee Payroll 13.69% 14.59% 15.84% (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 three years are shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Assets valuation method Discount rate Projected Salary Increases Inflation Payroll growth Individual salary growth 101 June 30, 2015 Entry Age Normal Cost Method Level percentage of payroll, closed Market Value 7.50% (net of administrative expenses) 3.30% to 14.20% depending on Age, Service, and type of employment 2.75% 3.00% A merit scale varying by duration of employment coupled with an assumed annual inflation of 2.75% and an annual production growth of 0.25%. CITY OF RANCHO CUCAMONGA MISCELLANEOUS RATE PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Proportion of the Net Pension Liability Proportionate Share of the Net Pension Liability Covered -Employee Payroll Proportionate Share of the Net Pension Liability as Percentage of Covered -Employee Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 2015 2016 2017 0.02166% 0.02652% 0.06568% $ 1,348,194 $ 1,819,909 $ 2,281,501 $ 1,474,657 $ 1,437,227 $ 1,524,047 91.42% 126.63% 149.70% 79.82% 78.40% 75.87% Notes to Schedule: Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes). Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer -specific liabilities. These employers should consult with their auditors. Changes of Assumptions: There were no changes of assumptions. (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only three years are shown. 102 CITY OF RANCHO CUCAMONGA MISCELLANEOUS RATE PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered -Employee Payroll Contributions as a Percentage of Covered -Employee Payroll 2015 2016 2017 $ 210,430 $ 219,901 $ 238,202 (210,430) (219,901) (238,202) $ 1,437,227 $ 1,524,047 $ 1,577,007 14.64% 14.43% 15.10% (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only three years are shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial Cost Method Amortization method Assets valuation method Discount Rate Projected Salary Increases Inflation Payroll Growth Individual Salary Growth June 30, 2015 Entry Age Normal Cost Method Level percentage of payroll, closed Market Value 7.50% (net of administrative expenses) 3.30% to 14.20% depending on Age, Service, and type of employment 2.75% 3.00% A merit scale varying by duration of employment coupled with an assumed annual inflation of 2.75% and an annual production growth of 0.25%. 103 CITY OF RANCHO CUCAMONGA SAFETY RATE PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Proportion of the Net Pension Liability Proportionate Share of the Net Pension Liability Covered -Employee Payroll Proportionate Share of the Net Pension Liability as Percentage of Covered -Employee Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 2015 2016 2017 0.31131% 0.33146% 0.57027% $ 19,373,864 $ 22,750,560 $ 29,535,666 $ 10,396,960 $ 10,554,523 $ 11,373,722 186.34% 215.55% 259.68% 79.82% 78.40% 72.69% Notes to Schedule: Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes). Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer -specific liabilities. These employers should consult with their auditors. Changes of Assumptions: There were no changes of assumptions. (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only three years are shown. 104 CITY OF RANCHO CUCAMONGA SAFETY RATE PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered -Employee Payroll Contributions as a Percentage of Covered -Employee Payroll 2015 2016 2017 $ 2,827,842 $ 3,007,980 $ 3,273,056 (2,827,842) (3,007,980) (3,273,056) $ 10,554,523 $ 11,373,722 $ 11,451,394 26.79% 26.45% 28.58% (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only three years are shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial Cost Method Amortization method Assets valuation method Discount Rate Projected Salary Increases Inflation Payroll Growth Individual Salary Growth June 30, 2015 Entry Age Normal Cost Method Level percentage of payroll, closed Market Value 7.50% (net of administrative expenses) 3.30% to 14.20% depending on Age, Service, and type of employment 2.75% 3.00% A merit scale varying by duration of employment coupled with an assumed annual inflation of 2.75% and an annual production growth of 0.25%. 105 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) TOTAL PENSION LIABILITY Service Cost Interest Changes of Benefits Terms Difference Between expected and Actual Experience Changes in Assumptions Benefit Payments, Including Refunds of Employee Contributions Net Change in Total Pension Liability Total Pension Liability - Beginning Total Pension Liability - Ending (a) PLAN FIDUCIARY NET POSITION Contribution - Employer Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Other Changes in Fiduciary Net Position Net Change in Fiduciary Net Position Plan Fiduciary Net Position - Beginning Plan Fiduciary Net Position - Ending (b) Plan Net Pension Liability/(Assets) - Ending (a) - (b) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered -Employee Payroll Plan Net Pension Liability/(Asset) as a Percentage of Covered - Employee Payroll 2015 2016 2017 $ 719,000 $ 743,000 $ 716,000 1,329,000 1,425,000 1,523,000 - - 538,000 - (110,000) 2,100, 000 (495,000) (546,000) (631,000) 1,553,000 1,622,000 4,136,000 20,790,000 22,343,000 23,965,000 $ 22,343,000 $ 23,965,000 $ 28,101,000 $ 497,000 $ 467,000 $ 312,000 3,177,000 660,000 21,000 (495,000) (546,000) (631,000) (33,000) (47,000) (35,000) 3,146,000 534,000 (333,000) 24,536,000 27,682,000 28,216,000 $ 27,682,000 $ 28,216,000 $ 27,883,000 $ (5,339,000) $ (4,251,000) $ 218,000 123.90% 117.74% 99.22% $ 24,363,588 $ 22,739,613 $ 21,593,214 -21.91% -18.69% 1.01% (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 three years are shown. Notes to Schedule: Benefit Changes: Revised EPMC adopted for RCCEA and SBPEA Changes of Assumptions: The dicsount rate was updated from 6.25% to 5.75%. The expected long-term rate of return on investments was updated from 6.25% to 5.75%. Mortality improvement scale was updated from Scale AA to Scale MP -2016. 1: CITY OF RANCHO CUCAMONGA PARS RETIREMENT ENHANCEMENT PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered -Employee Payroll 2015 2016 2017 $ 467,000 $ 307,590 $ 278,740 (467,000) (307,590) (278,740) $ 22,739,613 $ 21,593,214 $ 19,909,987 Contributions as a Percentage of Covered -Employee Payroll (3) 2.05% 1.42% 1.40% (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 three years are shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Amortization period Assets valuation method Inflation Salary Increases Investment rate of return Retirement age Mortality June 30, 2015 Agrregate Cost n/a n/a Actuarial value of assets 2.75% 4.5% average, including inflation of 3.0% 5.75% net of pension investment and administrative expenses, including inflation. CalPERS 1997-2011 Experience Study CaIPERS 1997-2011 Experience Study 107 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). 108 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. Community and Recreation Centers Impact Fee Fund - Established to account for impact fees for community and recreation centers needed to serve future development in the City. Park Improvement Fee Fund - Established to account for impact fees for park land acquisition and park improvements in the City. 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. 109 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Special Revenue Funds (Continued) 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. 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. 110 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Special Revenue Funds (Continued) 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. 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 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. 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. 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. Proposition 1 B - SLPP Fund - The Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, approved by the voters as Proposition 1 B on November 7, 2006, authorized $1 billion to be deposited in the State -Local Partnership Program (SLPP). Funds are allocated to he the City by the California Transportation Commission. 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." 111 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Special Revenue Funds (Continued) 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. 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. 112 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Capital Projects Funds 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. 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 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. 113 CITY OF RANCHO CUCAMONGA Non -Major Governmental Funds Capital Projects Funds (Continued) 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. 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. 114 THIS PAGE INTENTIONALLY LEFT BLANK 115 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 $ 121,971 $ 423,734 $ 83,618 $ - Accrued liabilities 52,392 Special Revenue Funds 5,803 - Unearned revenues - Park - - Gas Tax Recreation Development Beautification Assets: Due to other governments - - - Cash and investments $ 7,861,186 $ 3,459,037 $ 12,537,967 $ 1,051,447 Receivables: Total Liabilities 174,363 1,328,117 89,421 Accounts - 534,440 - - Taxes - - - - Accrued interest 15,038 6,467 24,718 2,067 Other loans - - - - Grants - - - - Prepaid costs 887 55,753 300 - Deposits - 13,387 - - Land held for resale - - - - Restricted assets: Community development projects - - 12,473,264 Cash and investments with fiscal agents - - - - Total Assets $ 7,877,111 $ 4,069,084 $ 12,562,985 $ 1,053,514 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 121,971 $ 423,734 $ 83,618 $ - Accrued liabilities 52,392 139,675 5,803 - Unearned revenues - 755,404 - - Deposits payable - 9,304 - - Due to other governments - - - - Due to other funds - - - - Total Liabilities 174,363 1,328,117 89,421 - Deferred Inflows of Resources: Unavailable revenues - 666 - 93,407 Total Deferred Inflows of Resources - 666 - 93,407 Fund Balances: Nonspendable: Prepaid costs 887 55,753 300 - Deposits - 13,387 - - Restricted for: Community development projects - - 12,473,264 - Public safety - police - - - - Parks and recreation - 2,671,161 - - Engineering and public works 7,701,861 - - 960,107 Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Public safety - animal center - - - - Unassigned - - - - Total Fund Balances 7,702,748 2,740,301 12,473,564 960,107 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 7,877,111 $ 4,069,084 $ 12,562,985 $ 1,053,514 116 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 (CONTINUED) Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Other loans Grants Prepaid costs Deposits Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds 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 Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Public safety - animal center Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Funds $ 191,943 $ 941,047 $ 312,983 $ - 5,440 93,785 10,546 - 116,447 - - 9,883 313,830 1,034,832 323,529 9,883 -_ 9,883 9,883 - - 22,789,940 - 4,681,078 - - - - 15,908,684 - - - - - (9,883) 4,681,078 15,908,684 22,789,940 (9,883) $ 4,994,908 $ 16,943,516 $ 23,113,469 $ 9,883 117 Landscape Lighting Maintenance Pedestrian Districts Districts Transportation Grant $ 4,955,763 $ 16,757,274 $ 23,041,913 $ - 7,976 52,646 26,140 - 22,130 100,148 - - 9,039 33,448 45,416 - - - - 9,883 $ 4,994,908 $ 16,943,516 $ 23,113,469 $ 9,883 $ 191,943 $ 941,047 $ 312,983 $ - 5,440 93,785 10,546 - 116,447 - - 9,883 313,830 1,034,832 323,529 9,883 -_ 9,883 9,883 - - 22,789,940 - 4,681,078 - - - - 15,908,684 - - - - - (9,883) 4,681,078 15,908,684 22,789,940 (9,883) $ 4,994,908 $ 16,943,516 $ 23,113,469 $ 9,883 117 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Other loans Grants Prepaid costs Deposits Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds 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 Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Public safety - animal center Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances ial Revenue Funds Community San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage $ 366,439 $ 758,007 $ 1,032,216 $ SB 140 36,529 - 1,497 2,024 - 1,358,688 - - - 209,789 - - - 269,288 - - - $ 2,204,204 $ 759,504 $ 1,034,240 $ 36,529 $ 36,790 $ 9,927 $ 147,584 $ - 14,538 7,430 - - 697,225 - - - 748,553 17,357 147,584 - 237,225 - - - 237,225 - - - 1,218,426 742,147 - - - - - 36,529 - 886,656 - 1,218,426 742,147 886,656 36,529 $ 2,204,204 $ 759,504 $ 1,034,240 $ 36,529 118 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 (CONTINUED) Special Revenue Funds Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 9,802 $- South Lower Masi - - - - Air Quality Etiwanda Etiwanda Commerce Due to other funds Improvement Drainage Drainage Center Assets: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Cash and investments $ 1,106,012 $ 643,218 $ 606,104 $ 10,947 Receivables: Deposits - - - - Restricted for: Accounts - - - - Taxes - - - - Accrued interest 2,181 1,264 1,194 16 Other loans - - - - Grants 56,889 - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - 290,507 Total Assets $ 1,165,082 $ 644,482 $ 607,298 $ 301,470 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 9,802 $- Accrued liabilities - - - - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds 30,000 - - - Total Liabilities 39,802 - - - Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Restricted for: Community development projects 1,125,280 - - - Public safety - police - - - - Parks and recreation - - - - Engineering and public works - 644,482 607,298 - Capital improvement projects - - - 301,470 Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Public safety - animal center - - - - Unassigned - - - - Total Fund Balances 1,125,280 644,482 607,298 301,470 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,165,082 $ 644,482 $ 607,298 $ 301,470 119 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 359,254 Special Revenue Funds - $ - Accrued liabilities 4,301 Proposition - - Unearned revenues - Library 84 - Park Bond Asset Deposits payable Measure I Services Act Forfeiture Assets: - - - - Cash and investments $ 5,206,035 $ 6,781,649 $ - $ 130,302 Receivables: 363,555 364,414 341 - Accounts 467,975 24,495 - - Taxes - 48,503 - - Accrued interest 9,820 10,645 - 255 Other loans - - - - Grants - - 341 - Prepaid costs - 8,735 - - Deposits - - - - Land held for resale - - - - Restricted assets: - - - - Cash and investments with fiscal agents - - - - Total Assets $ 5,683,830 $ 6,874,027 $ 341 $ 130,557 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 359,254 $ 210,092 $ - $ - Accrued liabilities 4,301 124,585 - - Unearned revenues - 29,722 - - Deposits payable - 15 - - Due to other governments - - - - Due to other funds - - 341 - Total Liabilities 363,555 364,414 341 - Deferred Inflows of Resources: Unavailable revenues - - 341 - Total Deferred Inflows of Resources - - 341 - Fund Balances: Nonspendable: Prepaid costs - 8,735 - - Deposits - - - - Restricted for: Community development projects - - - - Public safety - police - - - 130,557 Parks and recreation - - - - Engineering and public works 5,320,275 - - - Capital improvement projects - 915,726 - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - 5,585,152 - - Public safety - animal center - - - - Unassigned - - (341) - Total Fund Balances 5,320,275 6,509,613 (341) 130,557 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 5,683,830 $ 6,874,027 $ 341 $ 130,557 120 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 (CONTINUED) Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 75,046 $ - $ - Special Revenue Funds - - - - Unearned revenues 365 - - - Deposits payable Community Due to other governments - - - - Due to other funds - - - - and 365 75,046 - - Deferred Inflows of Resources: Used Oil Unavailable revenues Recreation Park - - - - Recycling COPS Centers Improvement Prepaid costs Grant Program Grant Impact Fee Fee Assets: Community development projects - - - - Public safety - police - 437,073 - - Cash and investments $ 365 $ 509,205 $ 448,736 $ 657,766 Receivables: Street lighting - - - - Underground utilities - - - - Accounts - - - - Taxes - - - - Accrued interest - - 884 1,297 Other loans - - - - Grants - 2,914 - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 365 $ 512,119 $ 449,620 $ 659,063 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 75,046 $ - $ - Accrued liabilities - - - - Unearned revenues 365 - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Total Liabilities 365 75,046 - - 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 - 437,073 - - Parks and recreation - - 449,620 659,063 Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Public safety - animal center - - - - Unassigned - - - - Total Fund Balances - 437,073 449,620 659,063 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 365 $ 512,119 $ 449,620 $ 659,063 121 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 $ - $ - $ - $ - Accrued liabilities 2,649 - - Unearned revenues Special Revenue Funds 84,625 - - Deposits payable - - - - Library AB 2928 - - - Due to other funds - Services & Traffic 2,649 Drainage CA State Technologies Congestion Unavailable revenues Facilities Library Act Relief Assets: Fund Balances: Nonspendable: Cash and investments $ 4,349,797 $ 114,031 $ 36,885 $ 292,870 Receivables: - - - - Restricted for: Accounts - 169 - - Taxes - - - - Accrued interest 8,551 - - - Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: $ 4,358,348 $ 114,200 $ 36,885 $ 292,870 Cash and investments with fiscal agents - - - - Total Assets $ 4,358,348 $ 114,200 $ 36,885 $ 292,870 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities 2,649 - - Unearned revenues - 84,625 - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Total Liabilities 2,649 84,625 - - 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 - - - - Parks and recreation - - - - Engineering and public works 4,350,597 - - 292,870 Capital improvement projects - - - - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - 29,575 36,885 - Public safety - animal center - - - - Unassigned - - - - Total Fund Balances 4,350,597 29,575 36,885 292,870 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 4,358,348 $ 114,200 $ 36,885 $ 292,870 122 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 (CONTINUED) Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Other loans Grants Prepaid costs Deposits Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds 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 Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Public safety - animal center Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Funds Energy Litter Efficient & Senior Reduction Conservation SAFETEA-LU Outreach Grant Block Grant Grant Grant $ 30,978 $ 404 $ 10,993 $ - - - 16 - - 251,224 - - 43,774 - - - $ 74,752 $ 251,628 $ 11,009 $ - $ 1,521 $ - $ - $ - 427 500 - - 72,804 - 11,009 - - 251,224 - - - - - 5,267 74,752 251,724 11,009 5,267 (96) - (96) $ 74,752 $ 251,628 123 - (5,267) - (5,267) $ 11,009 $ - CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Other loans Grants Prepaid costs Deposits Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds 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 Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Public safety - animal center Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Funds Safe Routes Citywide Underground to School Foothill Blvd. Infrastructure Utilities Program Maintenance Improvement $ 11,308,461 $ - $ - $ 27,362,916 - - - 537,196 22,287 - - 54,688 - 69,183 - 30,064 $ 11,330,748 $ 69,183 $ - $ 27,984,864 $ 628,399 $ - $ - $ 370,026 628,399 69,183 1,433 370,026 - 69,183 - - - - - 27,614,838 10,702,349 - - - - (69,183) (1,433) - 10,702,349 (69,183) (1,433) 27,614,838 $ 11,330,748 $ 69,183 $ - $ 27,984,864 124 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 (CONTINUED) Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Other loans Grants Prepaid costs Deposits Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds 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 Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Public safety - animal center Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Funds CA State COPS Secure Library Staff Our Schools Proposition Innovation The Big Read Grant 1B - SLPP Fund Grant Library Grant $ 11,988 $ 3,044 $ 251,309 $ 33,239 - 5 494 - $ 11,988 $ 3,049 $ 251,803 $ 33,239 $ - $ 1,436 12,042 - 251,803 11,803 12,042 - 251,803 13,239 - 3,049 - - - - - 20,000 (54) - - - (54) 3,049 - 20,000 $ 11,988 $ 3,049 $ 251,803 $ 33,239 125 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Other loans Grants Prepaid costs Deposits Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds 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 Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Public safety - animal center Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Funds Homeland Public Drink, Drive, Security Grant Resource Proposition $ 15,283 $ 29,532 $ - $ 241,882 - 32,280 6,300 - - - - 472 $ 15,283 $ 61,812 $ 6,300 $ 242,354 $ - $ 32,280 $ 7,125 $ 15,283 29,532 - - - 14,023 15,283 61,812 21,148 - - - 242,354 - - (14,848) - - - (14,848) 242,354 $ 15,283 $ 61,812 $ 6,300 $ 242,354 126 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 (CONTINUED) Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Other loans Grants Prepaid costs Deposits Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds 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 Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Public safety - animal center Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Funds $ - $ 2,300 $ 13,545 $ - - 34,622 - - - 36,922 13,545 - 978,077 3,313,753 - 206,300 - - (54) - 978,077 3,313,753 (54) 206,300 $ 978,077 $ 3,350,675 $ 13,491 $ 206,300 127 Proposition Henderson/ Integrated 42 - Traffic Wardman Waste Federal Grant Congestion Drainage Management Fund - Dreier Relief $ 978,077 $ 3,045,728 $ 13,491 $ 205,899 - 1,879 - - - 296,888 - - - 6,180 - 401 $ 978,077 $ 3,350,675 $ 13,491 $ 206,300 $ - $ 2,300 $ 13,545 $ - - 34,622 - - - 36,922 13,545 - 978,077 3,313,753 - 206,300 - - (54) - 978,077 3,313,753 (54) 206,300 $ 978,077 $ 3,350,675 $ 13,491 $ 206,300 127 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Other loans Grants Prepaid costs Deposits Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds 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 Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Public safety - animal center Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Freedom Courtyard Resource Grants 2,148 $ Special Revenue Funds Emergency Justice Management Homeland Assistance Performance Security Grant - Grant Grant Police 50,584 $ - - 18,914 $ 2,148 $ 50,584 $ - $ 18,914 2,148 48,440 2,148 48,440 28 18,914 28 18,914 - 37 37 - 2,144 - - - (28) (37) - 2,144 (28) (37) $ 2,148 $ 50,584 $ - $ 18,914 128 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 (CONTINUED) Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Other loans Grants Prepaid costs Deposits Land held for resale Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds 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 Parks and recreation Engineering and public works Capital improvement projects Street lighting Underground utilities Landscape maintenance Library services Public safety - animal center Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Funds Used Oil Recycling Library Police Impact Animal Center Program Impact Fee Fee Impact Fee $ 37,020 $ 423,083 $ 232,461 $ 86,093 65 830 456 168 $ 37,085 $ 423,913 $ 232,917 $ 86,261 1,023 - - 31,997 - - - 33,020 - - - - - 232,917 - 4,065 - - - - 423,913 - - - - - 86,261 4,065 423,913 232,917 86,261 $ 37,085 $ 423,913 $ 232,917 $ 86,261 129 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 and Fund Balances: Special Liabilities: Revenue - Accrued liabilities Funds Capital Projects Funds Unearned revenues Park Land Assessment Assessment Assessment - Acquisition District 82-1 District 84-1 District 86-2 Assets: Due to other funds - - - 41,128 Cash and investments $ 1,153,432 $ 13,181 $ 1,120,020 $ - Receivables: Unavailable revenues - Accounts - - - - Taxes - - - - Accrued interest 2,273 22 2,203 - Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: 13,203 1,122,223 - Street lighting - Cash and investments with fiscal agents - - - - Total Assets $ 1,155,705 $ 13,203 $ 1,122,223 $ - 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 1,155,705 - - - Engineering and public works - - - - Capital improvement projects - 13,203 1,122,223 - Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Public safety - animal center - - - - Unassigned - - - (41,128) Total Fund Balances 1,155,705 13,203 1,122,223 (41,128) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,155,705 $ 13,203 $ 1,122,223 $ - 130 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 (CONTINUED) Capital Projects Funds CFD 2000-01 Public Library South Bond Act - Assets: Cash and investments $ 76 $ 496,322 $ 5,568 $ 32,514 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 977 - - Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - 169,509 - Total Assets $ 76 $ 497,299 $ 175,077 $ 32,514 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Unearned revenues - - - 26,386 Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Total Liabilities - - - 26,386 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 76 497,299 175,077 6,128 Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Public safety - animal center - - - - Unassigned - - - - Total Fund Balances 76 497,299 175,077 6,128 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 76 $ 497,299 $ 175,077 $ 32,514 131 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 and Fund Balances: Liabilities: Capital Projects Funds Accounts payable Etiwanda CFD 2004-01 CFD 2003-01 CFD 2006-01 - - - Equestrian Rancho Cultural Vintner's - Facility Etiwanda Center Grove Assets: - - 179,628 - Total Liabilities - Cash and investments $ 676,078 $ 5,106 $ - $ 1,848 Receivables: - - - Total Deferred Inflows of Resources - - - - Accounts - - - - Taxes - - - - Accrued interest 1,329 5 - - Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: - - - Public safety - animal center - - - - Cash and investments with fiscal agents - 43,346 184,869 - Total Assets $ 677,407 $ 48,457 $ 184,869 $ 1,848 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 - - 179,628 - Total Liabilities - - 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 677,407 48,457 5,241 1,848 Street lighting - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Public safety - animal center - - - - Unassigned - - - - Total Fund Balances 677,407 48,457 5,241 1,848 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 677,407 $ 48,457 $ 184,869 $ 1,848 132 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 3,980,423 Accrued liabilities - 497,716 Unearned revenues - 1,383,363 Deposits payable - 9,319 Due to other governments - 948,449 Due to other funds - 486,275 Total Liabilities Capital Deferred Inflows of Resources: Projects - 415,844 Total Deferred Inflows of Resources Funds Fund Balances: Nonspendable: Total Prepaid costs CFD 2006-02 Nonmajor - 13,387 Amador on Governmental Community development projects Route 66 Funds Assets: Parks and recreation - 4,935,549 Cash and investments $ 6,073 $ 140,636,531 Receivables: Street lighting - 4,681,078 Accounts - 1,691,496 Taxes - 467,669 Accrued interest 11 268,703 Other loans - 1,609,912 Grants - 441,751 Prepaid costs - 65,675 Deposits - 13,387 Land held for resale - 269,288 Restricted assets: Cash and investments with fiscal agents - 688,231 Total Assets $ 6,084 $ 146,152,643 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 3,980,423 Accrued liabilities - 497,716 Unearned revenues - 1,383,363 Deposits payable - 9,319 Due to other governments - 948,449 Due to other funds - 486,275 Total Liabilities - 7,305,545 Deferred Inflows of Resources: Unavailable revenues - 415,844 Total Deferred Inflows of Resources - 415,844 Fund Balances: Nonspendable: Prepaid costs - 65,675 Deposits - 13,387 Restricted for: Community development projects - 15,559,117 Public safety - police - 802,691 Parks and recreation - 4,935,549 Engineering and public works - 47,451,557 Capital improvement projects 6,084 32,271,733 Street lighting - 4,681,078 Underground utilities - 10,702,349 Landscape maintenance - 15,908,684 Library services - 6,095,525 Public safety - animal center - 86,261 Unassigned - (142,352) Total Fund Balances 6,084 138,431,254 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 6,084 $ 146,152,643 133 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenue Funds 134 Park Gas Tax Recreation Development Beautification Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 3,315,866 - - - Charges for services - 2,796,869 - Use of money and property 19,993 1,015,381 42,009 3,192 Contributions - 233,524 - - Developer participation - - - 200 Miscellaneous 314 256,570 - - Total Revenues 3,336,173 4,302,344 42,009 3,392 Expenditures: Current: General government - - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - - 158,016 - Community services - 4,418,912 - - Engineering and public works 2,180,231 - - 860 Capital outlay 339,035 - 709,313 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,519,266 4,418,912 867,329 860 Excess (Deficiency) of Revenues Over (Under) Expenditures 816,907 (116,568) (825,320) 2,532 Other Financing Sources (Uses): Transfers in - - - - Transfers out (105,100) - - - Total Other Financing Sources (Uses) (105,100) - - - Net Change in Fund Balances 711,807 (116,568) (825,320) 2,532 Fund Balances, Beginning of Year 6,990,941 2,856,869 13,298,884 957,575 Fund Balances, End of Year $ 7,702,748 $ 2,740,301 $ 12,473,564 $ 960,107 134 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) al Revenue Funds Expenditures: Current: General government 2,735,149 Landscape - - Lighting Maintenance Pedestrian - Districts Districts Transportation Grant Revenues: - - Community development Taxes $ 2,087,338 $ 10,474,929 $ $ - Licenses and permits - 226,955 - - Intergovernmental - - - - Charges for services - 24,497 - Use of money and property 9,490 108,940 68,380 - Contributions - 50,000 - - Developer participation 1,510 - 4,264,267 - Miscellaneous - 1,933 - - Total Revenues 2,098,338 10,887,254 4,332,647 - 10,179,404 Expenditures: Current: General government 2,735,149 - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - 9,593,584 340 Community services - - - - Engineering and public works - - 1,645,027 - Capital outlay - 585,820 1,177,265 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,735,149 10,179,404 2,822,292 340 Excess (Deficiency) of Revenues Over (Under) Expenditures (636,811) 707,850 1,510,355 (340) Other Financing Sources (Uses): Transfers in 455,270 429,880 - - Transfers out - - - - Total Other Financing Sources (Uses) 455,270 429,880 - - Net Change in Fund Balances (181,541) 1,137,730 1,510,355 (340) Fund Balances, Beginning of Year 4,862,619 14,770,954 21,279,585 (9,543) Fund Balances, End of Year $ 4,681,078 $ 15,908,684 $ 22,789,940 $ (9,883) 135 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenue Funds 136 Community San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage SB 140 Revenues: Taxes $ $ - $ $ - Licenses and permits - - - - Intergovernmental 678,206 - - - Charges for services - - - Use of money and property (2,438) 1,744 3,339 (302) Contributions - - - - Developer participation - - 113,935 - Miscellaneous 169,811 990,769 - - Total Revenues 845,579 992,513 117,274 (302) Expenditures: Current: General government - 863,165 - - Public safety - police - - - Public safety - fire protection - - - Community development 808,385 - - - Community services - - - - Engineering and public works - - 148,174 - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 808,385 863,165 148,174 - Excess (Deficiency) of Revenues Over (Under) Expenditures 37,194 129,348 (30,900) (302) Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 37,194 129,348 (30,900) (302) Fund Balances, Beginning of Year 1,181,232 612,799 917,556 36,831 Fund Balances, End of Year $ 1,218,426 $ 742,147 $ 886,656 $ 36,529 136 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) Revenue Funds 137 South Lower Masi Air Quality Etiwanda Etiwanda Commerce Improvement Drainage Drainage Center Revenues: Taxes $ - $ $ - $ - Licenses and permits - - - Intergovernmental 313,349 - - - Charges for services - - - Use of money and property 3,102 2,141 2,029 256 Contributions - - - - Developer participation - - - Miscellaneous - - - - Total Revenues 316,451 2,141 2,029 256 Expenditures: Current: General government 18,484 - - - Public safety - police - - - Public safety - fire protection - - - Community development - - - Community services - - - - Engineering and public works - 250 170 - Capital outlay 21,802 - - - Debt service: Principal retirement - - - Interest and fiscal charges - - - - Total Expenditures 40,286 250 170 - Excess (Deficiency) of Revenues Over (Under) Expenditures 276,165 1,891 1,859 256 Other Financing Sources (Uses): Transfers in - - - - Transfers out (30,000) - - - Total Other Financing Sources (Uses) (30,000) - - Net Change in Fund Balances 246,165 1,891 1,859 256 Fund Balances, Beginning of Year 879,115 642,591 605,439 301,214 Fund Balances, End of Year $ 1,125,280 $ 644,482 $ 607,298 $ 301,470 137 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year ial Revenue Funds Proposition Library 84 - Park Bond Asset Measure I Services Act Forfeiture $ - $ 4,116,691 $ $ - 2,970,566 14,116 3,507,772 16,034 - 414,511 - - 12,476 5,701 - 367 - 248,480 - - 19,074 - - 2,983,042 4,818,573 3,507,772 16,401 26,359 - 30,972 - - 4,131,897 - 1,518,958 - - - 1,995,584 891,013 2,496,378 13,725 - 8,817 - - - 355 - - 3,514,542 5,032,082 2,527,350 40,084 (531,500) (213,509) 980,422 (23,683) (531,500) (213,509) 980,422 (23,683) 5,851,775 6,723,122 (980,763) 154,240 $ 5,320,275 $ 6,509,613 $ (341) $ 130,557 138 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) 139 Special Revenue Funds Community and Used Oil Recreation Park Recycling COPS Centers Improvement Grant Program Grant Impact Fee Fee Revenues: Taxes $ $ - $ - $ - Licenses and permits - - - Intergovernmental 15,294 352,710 - Charges for services - - - Use of money and property (54) (5,576) (779) (1,135) Contributions - - - - Developer participation - - 422,182 618,821 Miscellaneous - - - - Total Revenues 15,240 347,134 421,403 617,686 Expenditures: Current: General government - - - - Public safety - police - 276,136 - Public safety - fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 15,240 - - - Capital outlay - 441,013 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 15,240 717,149 - - Excess (Deficiency) of Revenues Over (Under) Expenditures - (370,015) 421,403 617,686 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - (370,015) 421,403 617,686 Fund Balances, Beginning of Year - 807,088 28,217 41,377 Fund Balances, End of Year $ - $ 437,073 $ 449,620 $ 659,063 139 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 140 Special Revenue Funds Library AB 2928 Services & Traffic Drainage CA State Technologies Congestion Facilities Library Act Relief Revenues: Taxes $ - $ $ - $ - Licenses and permits - - - Intergovernmental - 74,803 - - Charges for services - - - Use of money and property 12,763 (896) (316) (2,547) Contributions - - - - Developer participation 624,043 - - - Miscellaneous - - - - Total Revenues 636,806 73,907 (316) (2,547) Expenditures: Current: General government - - - - Public safety - police - - - Public safety - fire protection - - - Community development - - - - Community services - 46,867 - - Engineering and public works 418,874 - - 80 Capital outlay 6,300 38,966 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 425,174 85,833 - 80 Excess (Deficiency) of Revenues Over (Under) Expenditures 211,632 (11,926) (316) (2,627) Other Financing Sources (Uses): Transfers in - - - Transfers out - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 211,632 (11,926) (316) (2,627) Fund Balances, Beginning of Year 4,138,965 41,501 37,201 295,497 Fund Balances, End of Year $ 4,350,597 $ 29,575 $ 36,885 $ 292,870 140 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) Special Revenue Funds Energy Litter Efficient & Senior Reduction Conservation SAFETEA-LU Outreach Grant Block Grant Grant Grant Revenues: Taxes $ - $ $ - $ - Licenses and permits - - - Intergovernmental 67,817 833,891 - Charges for services - - Use of money and property (340) 6,313 - Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 1,500 - 68,977 - 840,204 - 68,977 - 840,204 - 68,977 - 840,204 - - (96) - (5,267) $ - $ (96) $ - $ (5,267) 141 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 al Revenue Funds 142 Safe Routes Citywide Underground to School Foothill Blvd. Infrastructure Utilities Program Maintenance Improvement Revenues: Taxes $ $ - $ - $ - Licenses and permits - - - - Intergovernmental - 29,822 - 3,791,763 Charges for services - - - - Use of money and property 39,430 - - 98,630 Contributions - - - - Developer participation - - - - Miscellaneous - - - 568,942 Total Revenues 39,430 29,822 - 4,459,335 Expenditures: Current: General government - - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 646,387 6,166 - 101,295 Capital outlay 495,933 - - 2,443,164 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,142,320 6,166 - 2,544,459 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,102,890) 23,656 - 1,914,876 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (1,102,890) 23,656 - 1,914,876 Fund Balances, Beginning of Year 11,805,239 (92,839) (1,433) 25,699,962 Fund Balances, End of Year $ 10,702,349 $ (69,183) $ (1,433) $ 27,614,838 142 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) 143 Special Revenue Funds CA State COPS Secure Library Staff Our Schools Proposition Innovation The Big Read Grant 1 B - SLPP Fund Grant Library Grant Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - 6,706 3,491 Charges for services - - - - Use of money and property (97) (186) 885 (224) Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues (97) (186) 7,591 3,267 Expenditures: Current: General government - - - - Public safety - police - - - - Public safety - fire protection - - - - Community development - - - - Community services - - 7,591 3,266 Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - 7,591 3,266 Excess (Deficiency) of Revenues Over (Under) Expenditures (97) (186) - 1 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (97) (186) - 1 Fund Balances, Beginning of Year 43 3,235 - 19,999 Fund Balances, End of Year $ (54) $ 3,049 $ - $ 20,000 143 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Special Revenue Funds Homeland Public Drink, Drive, Security Grant • Resource Proposition 144 Lose Grant Fire Grants 113 Revenues: Taxes $ $ - $ $ - Licenses and permits - - Intergovernmental 122 32,523 52,440 - Charges for services - - - Use of money and property (122) (243) (141) 813 Contributions - - 10,000 - Developer participation - - - Miscellaneous - 460 - Total Revenues - 32,280 62,759 813 Expenditures: Current: General government - - 87,606 - Public safety - police - - - - Public safety - fire protection - - - - Community development - - - 60 Community services - - - - Engineering and public works - - - - Capital outlay - 32,280 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 32,280 87,606 60 Excess (Deficiency) of Revenues Over (Under) Expenditures - - (24,847) 753 Other Financing Sources (Uses): Transfers in - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - - (24,847) 753 Fund Balances, Beginning of Year - - 9,999 241,601 Fund Balances, End of Year $ - $ - $ (14,848) $ 242,354 144 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) ial Revenue Funds 145 Proposition Henderson/ Integrated 42 - Traffic Wardman Waste Federal Grant Congestion Drainage Management Fund - Dreier Relief Revenues: Taxes $ - $ 1,134,367 $ - $ - Licenses and permits - 27,985 - - Intergovernmental - - - - Charges for services - - - - Use of money and property (8,526) 7,172 (97) 676 Contributions - - - - Developer participation - - - - Miscellaneous - 754,463 - - Total Revenues (8,526) 1,923,987 (97) 676 Expenditures: Current: General government - - - - Public safety - police - - - Public safety - fire protection - - - Community development - - - Community services - - - - Engineering and public works 300 1,167,952 - 250 Capital outlay - 355,348 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 300 1,523,300 - 250 Excess (Deficiency) of Revenues Over (Under) Expenditures (8,826) 400,687 (97) 426 Other Financing Sources (Uses): Transfers in - - - - Transfers out - (350,170) - - Total Other Financing Sources (Uses) - (350,170) - - Net Change in Fund Balances (8,826) 50,517 (97) 426 Fund Balances, Beginning of Year 986,903 3,263,236 43 205,874 Fund Balances, End of Year $ 978,077 $ 3,313,753 $ (54) $ 206,300 145 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 146 Special Revenue Funds Freedom Emergency Courtyard Justice Management Homeland Resource Assistance Performance Security Grant - Grants Grant Grant Police Revenues: Taxes $ $ - $ - $ - Licenses and permits - - - Intergovernmental 25,507 33,218 18,877 Charges for services - - - Use of money and property (435) 2 - Contributions - - - Developer participation - - - Miscellaneous - - - Total Revenues - 25,072 33,220 18,877 Expenditures: Current: General government - - - Public safety - police - - 18,914 Public safety - fire protection - 33,218 - Community development - - - Community services - - - Engineering and public works - - - Capital outlay 25,467 - - Debt service: Principal retirement - - - Interest and fiscal charges - - - Total Expenditures - 25,467 33,218 18,914 Excess (Deficiency) of Revenues Over (Under) Expenditures - (395) 2 (37) Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - (395) 2 (37) Fund Balances, Beginning of Year - 2,539 (30) - Fund Balances, End of Year $ - $ 2,144 $ (28) $ (37) 146 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) ial Revenue Funds 147 Used Oil Recycling Library Impact Police Impact Animal Center Program Fee Fee Impact Fee Revenues: Taxes $ $ - $ - $ - Licenses and permits - - - - Intergovernmental 49,811 - - - Charges for services - 183,164 120,240 34,364 Use of money and property (124) 590 339 140 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 49,687 183,754 120,579 34,504 Expenditures: Current: General government - - - - Public safety - police - - - - Public safety - fire protection - - - - Community development 45,622 - - - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 45,622 - - - Excess (Deficiency) of Revenues Over (Under) Expenditures 4,065 183,754 120,579 34,504 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 4,065 183,754 120,579 34,504 Fund Balances, Beginning of Year - 240,159 112,338 51,757 Fund Balances, End of Year $ 4,065 $ 423,913 $ 232,917 $ 86,261 147 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds Capital Projects Funds Park Land Assessment Assessment Assessment Acquisition District 82-1 District 84-1 District 86-2 (1,840) 62 3,719 - 1.072.996 - - - 1,071,156 62 3,719 - - 290 290 62 3,429 1,U/1,19b bL 3,42U - 84,549 13,141 1,118,794 (41,128) $ 1,155,705 $ 13,203 $ 1,122,223 $ (41,128) 148 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) Capital Projects Funds 149 CFD 2000-01 Public Library South Bond Act - Etiwanda CFD 2001-01 CFD 2003-01 2000 Revenues: Taxes $ $ - $ - $ - Licenses and permits - - Intergovernmental - 267 Charges for services - - - Use of money and property 1,663 125 (267) Contributions - - - Developer participation - - Miscellaneous - - Total Revenues - 1,663 125 - 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 - 1,533 125 - Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - 1,533 125 - Fund Balances, Beginning of Year 76 495,766 174,952 6,128 Fund Balances, End of Year $ 76 $ 497,299 $ 175,077 $ 6,128 149 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Capital Projects Funds Etiwanda CFD 2004-01 CFD 2003-01 CFD 2006-01 Equestrian Rancho Cultural Vintner's Facility Etiwanda Center Grove Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Use of money and property 2,251 48 175 - Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 2,251 48 175 - 190 - - - - 28,554 - - 28,554 - - 190 2,061 (28,506) 175 - Z,Ua i tzo,aua) iia - 675,346 76,963 5,066 1,848 $ 677,407 $ 48,457 $ 5,241 $ 1,848 150 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Capital Projects Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety - police Public safety - fire protection Community development Community services Engineering and public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 151 Total CFD 2006-02 Nonmajor Amador on Governmental Route 66 Funds $ $ 17,813,325 254,940 16,204,971 3,573,645 14 1,447,665 - 542,004 7,117,954 2,763,836 14 49,718,340 3,704,694 321,409 33,218 10,637,299 8,608,533 8,787,949 12,068,406 8,817 355 - 44,170,680 14 5,547,660 - 885,150 (485,270) 399,880 14 5,947,540 $ 6,084 $ 138,431,254 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) GAS TAX YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,990,941 $ 6,990,941 $ 6,990,941 $ - Resources (Inflows): Intergovernmental Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Debt service: 3,552,840 3,401,280 3,315,866 (85,414) 74,480 79,810 19,993 (59,817) - - 314 314 10,618,261 10,472,031 10,327,114 (144,917) 2,779,290 2,729,292 2,184,024 545,268 1,374,000 1,496,108 1,386,339 109,769 Transfers out 105,100 105,100 105,100 - Total Charges to Appropriations 4,258,390 4,330,500 3,675,463 655,037 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 6,359,871 $ 6,141,531 6,651,651 $ 510,120 Encumbrances 1,051,097 Budgetary Fund Balance, June 30 (GAAP Basis) $ 7,702,748 152 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) RECREATION YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Charges for services Use of money and property Contributions Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Community services Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ 2,444,749 $ 2,323,439 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 153 2,427,231 $ 103,792 313,070 $ 2,740,301 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2,856,869 $ 2,856,869 $ 2,856,869 $ - 2,942,110 2,952,590 2,796,869 (155,721) 1,098,940 1,063,540 1,015,381 (48,159) 230,930 240,900 233,524 (7,376) 200,060 198,630 256,570 57,940 7,328,909 7,312,529 7,159,213 (153,316) 4,634,160 4,619,590 4,418,912 200,678 250,000 369,500 313,070 56,430 4,884,160 4,989,090 4,731,982 257,108 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 2,444,749 $ 2,323,439 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 153 2,427,231 $ 103,792 313,070 $ 2,740,301 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PARK DEVELOPMENT YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ 9,902,784 $ 7,702,241 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 154 8,357,073 $ 654,832 4,116,491 $ 12,473,564 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 13,298,884 $ 13,298,884 $ 13,298,884 $ - 149,780 149,660 42,009 (107,651) 13,448,664 13,448,544 13,340,893 (107,651) 190,880 230,150 173,766 56,384 3,355,000 5,516,153 4,810,054 706,099 3,545,880 5,746,303 4,983,820 762,483 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 9,902,784 $ 7,702,241 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 154 8,357,073 $ 654,832 4,116,491 $ 12,473,564 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) BEAUTIFICATION YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 957,575 $ 957,575 $ 957,575 $ - Resources (Inflows): Use of money and property 14,970 12,030 Developer participation - 200 3,192 (8,838) 200 - Amounts Available for Appropriations 972,545 969,805 960,967 (8,838) Charges to Appropriation (Outflow): Engineering and public works 860 860 Capital outlay 935,470 417,000 Total Charges to Appropriations 936,330 417,860 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 36,215 $ 551,945 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 155 860 860 960,107 $ 960,107 417,000 417,000 $ 408,162 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIGHTING DISTRICTS YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Use of money and property Developer participation Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ 4,661,509 $ 4,722,189 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 156 4,680,364 $ (41,825) 714 $ 4,681,078 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 4,862,619 $ 4,862,619 $ 4,862,619 $ - 2,114,980 2,114,980 2,087,338 (27,642) 60,140 56,110 9,490 (46,620) 2,000 2,000 1,510 (490) 455,270 455,270 455,270 - 7,495,009 7,490,979 7,416,227 (74,752) 2,813,500 2,754,780 2,735,863 18,917 20,000 14,010 - 14,010 2,833,500 2,768,790 2,735,863 32,927 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 4,661,509 $ 4,722,189 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 156 4,680,364 $ (41,825) 714 $ 4,681,078 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LANDSCAPE MAINTENANCE DISTRICTS YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Licenses and permits Charges for services Use of money and property Contributions Miscellaneous Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Total Charges to Appropriations Budget Amounts Original Final $ 14,770,954 $ 14,770,954 10,430,290 240,000 19,810 190,350 50,000 3,940 1190 Run 10,430,290 240,000 19,810 210,490 50,000 3,940 aqQ uun Actual Amni infe $ 14,770,954 10,474,929 226,955 24,497 108,940 50,000 1,933 a9a uun Variance with Final Budget Positive (Negative) 44,639 (13,045) 4,687 (101,550) (2,007) 26,935,224 26,955,364 26,U1313,U1313 (67,276) 10,881,840 10,930,606 9,852,053 1,078,553 Rwi nnn ARR Qua 7r,R Rra un 1 Rn 11,564,840 11,767, 590 10,608,907 1,158,683 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 14,570,384 $ 14,387,774 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 157 15,479,181 $ 1,091,407 aqQ gnu $ 15,908,684 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) TRANSPORTATION YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ 18,473,195 $ 15,825,115 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 158 17,558,907 $ 1,733,792 5,231,033 $ 22,789,940 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 21,279,585 $ 21,279,585 $ 21,279,585 $ - 215,170 240,490 68,380 (172,110) 3,000,000 3,000,000 4,264,267 1,264,267 24,494,755 24,520,075 25,612,232 1,092,157 962,870 1,328,766 1,645,027 (316,261) 5,058,690 7,366,194 6,408,298 957,896 6,021,560 8,694,960 8,053,325 641,635 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 18,473,195 $ 15,825,115 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 158 17,558,907 $ 1,733,792 5,231,033 $ 22,789,940 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PEDESTRIAN GRANT YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Budget Amounts Original Final $ (9,543) $ (9,543) Actual Amounts $ (9,543) Variance with Final Budget Positive (Negative) 46,940 46,940 - (46,940) 37,397 37,397 (9,543) (46,940) Community development 340 340 340 - Capital outlay 46,600 46,600 46,600 - Total Charges to Appropriations 46,940 46,940 46,940 - Budgetary Fund Balance, June 30 (Budgetary Basis) $ (9,543) $ (9,543) (56,483) $ (46,940) Encumbrances 46,600 Budgetary Fund Balance, June 30 (GAAP Basis) $ (9,883) 159 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ 780,552 $ 436,072 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 160 1,218,426 $ 782,354 $ 1,218,426 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 1,181,232 $ 1,181,232 $ 1,181,232 $ - 1,151,140 951,140 678,206 (272,934) - - (2,438) (2,438) 350,000 200,000 169,811 (30,189) 2,682,372 2,332,372 2,026,811 (305,561) 1,901,820 1,896,300 808,385 1,087,915 1,901,820 1,896,300 808,385 1,087,915 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 780,552 $ 436,072 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 160 1,218,426 $ 782,354 $ 1,218,426 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT ADMINISTRATION YEAR ENDED JUNE 30, 2017 161 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 612,799 $ 612,799 $ 612,799 $ - Resources (Inflows): Use of money and property 6,490 6,150 1,744 (4,406) Miscellaneous 991,260 991,260 990,769 (491) Amounts Available for Appropriations 1,610,549 1,610,209 1,605,312 (4,897) Charges to Appropriation (Outflow): General government 957,250 953,580 863,165 90,415 Total Charges to Appropriations 957,250 953,580 863,165 90,415 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 653,299 $ 656,629 742,147 $ 85,518 Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 742,147 161 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAN SEVAINE / ETIWANDA DRAINAGE YEAR ENDED JUNE 30, 2017 162 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 917,556 $ 917,556 $ 917,556 $ - Resources (Inflows): Use of money and property 13,780 11,090 3,339 (7,751) Developer participation 75,000 150,000 113,935 (36,065) Amounts Available for Appropriations 1,006,336 1,078,646 1,034,830 (43,816) Charges to Appropriation (Outflow): Engineering and public works 50,590 148,174 148,174 - Capital outlay - 6 - 6 Total Charges to Appropriations 50,590 148,180 148,174 6 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 955,746 $ 930,466 886,656 $ (43,810) Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 886,656 162 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30, 2017 163 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 879,115 $ 879,115 $ 879,115 $ - Resources (Inflows): Intergovernmental 212,200 235,020 313,349 78,329 Use of money and property 7,510 7,510 3,102 (4,408) Amounts Available for Appropriations 1,098,825 1,121,645 1,195,566 73,921 Charges to Appropriation (Outflow): General government 23,100 24,450 19,864 4,586 Capital outlay 318,810 177,000 171,602 5,398 Transfers out - - 30,000 (30,000) Total Charges to Appropriations 341,910 201,450 221,466 (20,016) Budgetary Fund Balance, June 30 (Budgetary Basis) $ 756,915 $ 920,195 974,100 $ 53,905 Encumbrances 151,180 Budgetary Fund Balance, June 30 (GAAP Basis) $ 1,125,280 163 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SOUTH ETIWANDA DRAINAGE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 642,591 $ 642,591 $ 642,591 $ - Resources (Inflows): Use of money and property 7,610 7,360 2,141 (5,219) Amounts Available for Appropriations 650,201 649,951 644,732 (5,219) Charges to Appropriation (Outflow): Engineering and public works 250 250 Total Charges to Appropriations 250 250 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 649,951 $ 649,701 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 164 250 - 250 - 644,482 $ (5,219) ZO b44,46Z CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LOWER ETIWANDA DRAINAGE YEAR ENDED JUNE 30, 2017 Charges to Appropriation (Outflow): Engineering and public works 25,170 170 Total Charges to Appropriations 25,170 170 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 587,289 $ 612,199 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 165 170 - 170 - 607,298 $ (4,901) b bui,Zyu Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 605,439 $ 605,439 $ 605,439 $ - Resources (Inflows): Use of money and property 7,020 6,930 2,029 (4,901) Amounts Available for Appropriations 612,459 612,369 607,468 (4,901) Charges to Appropriation (Outflow): Engineering and public works 25,170 170 Total Charges to Appropriations 25,170 170 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 587,289 $ 612,199 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 165 170 - 170 - 607,298 $ (4,901) b bui,Zyu CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) MASI COMMERCE CENTER YEAR ENDED JUNE 30, 2017 Variance with Final Budget Positive (Negative) 126 126 $ 126 Budget Amounts Actual Original Final Amounts Budgetary Fund Balance, July 1 $ 301,214 $ 301,214 $ 301,214 Resources (Inflows): Use of money and property 130 130 256 Amounts Available for Appropriations 301,344 301,344 301,470 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 301,344 $ 301,344 301,470 Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 301,470 Variance with Final Budget Positive (Negative) 126 126 $ 126 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) MEASUREI YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 as restated Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ 2,907,155 $ 898,065 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 167 2,575,380 $ 1,677,315 2,744,895 $ 5,320,275 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 5,851,775 $ 5,851,775 $ 5,851,775 $ - 2,762,470 2,941,500 2,970,566 29,066 57,100 58,070 12,476 (45,594) 8,671,345 8,851,345 8,834,817 (16,528) 1,294,190 1,795,962 1,617,747 178,215 4,470,000 6,157,318 4,641,690 1,515,628 5,764,190 7,953,280 6,259,437 1,693,843 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 2,907,155 $ 898,065 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 167 2,575,380 $ 1,677,315 2,744,895 $ 5,320,275 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIBRARY SERVICES YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Intergovernmental Charges for services Use of money and property Contributions Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Community services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ 6,490,262 $ 5,813,642 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 168 6,403,189 $ 589,547 1 f1R nen $ 6,509,613 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $6,723,122 $ 6,723,122 $ 6,723,122 $ - 4,095,400 4,040,850 4,116,691 75,841 25,000 25,780 14,116 (11,664) 400,600 390,400 414,511 24,111 62,430 57,700 5,701 (51,999) 190,000 263,500 248,480 (15,020) 20,420 20,420 19,074 (1,346) 11,516,972 11,521,772 11,541,695 19,923 4,637,960 4,712,636 4,214,370 498,266 377,030 983,704 914,964 68,740 11,720 11,410 8,817 2,593 - 380 355 25 5,026,710 5,708,130 5,138,506 569,624 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 6,490,262 $ 5,813,642 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 168 6,403,189 $ 589,547 1 f1R nen $ 6,509,613 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 84 - PARK BOND ACT YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ (980,763) $ 2,947 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 169 (341) $ (3,288) $ (341) Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (980,763) $ (980,763) $ (980,763) $ - 5,320 3,691,800 3,507,772 (184,028) (975,443) 2,711,037 2,527,009 (184,028) 5,320 42,330 30,972 11,358 - 2,665,760 2,496,378 169,382 5,320 2,708,090 2,527,350 180,740 Budgetary Fund Balance, June 30 (Budgetary Basis) $ (980,763) $ 2,947 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 169 (341) $ (3,288) $ (341) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSET FORFEITURE YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety - Police Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ 91,210 $ 51,370 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 170 82,070 $ 30,700 48,487 $ 130,557 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 154,240 $ 154,240 $ 154,240 $ - - - 16,034 16,034 2,340 1,800 367 (1,433) 156,580 156,040 170,641 14,601 850 26,370 26,359 11 64,520 78,300 62,212 16,088 65,370 104,670 88,571 16,099 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 91,210 $ 51,370 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 170 82,070 $ 30,700 48,487 $ 130,557 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) USED OIL RECYCLING GRANT YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental 15,240 15,240 15,294 54 Use of money and property - - (54) (54) Amounts Available for Appropriation 15,240 15,240 15,240 - Charges to Appropriation (Outflow): Engineering and public works 15,240 15,240 15,240 - Total Charges to Appropriation 15,240 15,240 15,240 - Budgetary Fund Balance, June 30 (Budgetary Basis) $ - $ - - $ - Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ - 171 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COPS PROGRAM GRANT YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 807,088 $ 807,088 $ 807,088 $ - Resources (Inflows): Intergovernmental 200,000 200,000 352,710 152,710 Use of money and property - - (5,576) (5,576) Amounts Available for Appropriations 1,007,088 1,007,088 1,154,222 147,134 Charges to Appropriation (Outflow): Public safety - Police 270,900 280,060 279,666 Capital outlay - 447,340 447,338 Total Charges to Appropriations 270,900 727,400 727,004 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 736,188 $ 279,688 427,218 Encumbrances 9,855 Budgetary Fund Balance, June 30 (GAAP Basis) $ 437,073 172 394 $ 147,530 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COMMUNITY AND RECREATION CENTERS IMPACT FEE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 28,217 $ 28,217 $ 28,217 $ - Resources (Inflows): Use of money and property 510 410 (779) (1,189) Developer participation 50,000 50,000 422,182 372,182 Amounts Available for Appropriation 78,727 78,627 449,620 370,993 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 78,727 $ 78,627 449,620 $ 370,993 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 173 $ 449,620 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PARKIMPROVEMENTFEE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 41,377 $ 41,377 $ 41,377 $ - Resources (Inflows): Use of money and property 730 590 (1,135) (1,725) Developer participation 70,000 70,000 618,821 548,821 Amounts Available for Appropriation 112,107 111,967 659,063 547,096 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 112,107 $ 111,967 659,063 $ 547,096 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 174 $ 659,063 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) DRAINAGE FACILITIES YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Engineering and public works Capital outlay Total Charges to Appropriations Budget Amounts Original Final $ 4,138,965 $ 4,138,965 Variance with Final Budget Actual Positive Amounts (Negative) $ 4,138,965 $ - 45,160 47,310 12,763 (34,547) 475,000 240,000 624,043 384,043 4,659,125 4,426,275 4,775,771 349,496 296,610 423,798 418,874 4,924 1,010,000 306,352 305,131 1,221 1,306,610 730,150 724,005 6,145 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 3,352,515 $ 3,696,125 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 175 4,051,766 $ 355,641 298,831 $ 4,350,597 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CA STATE LIBRARY YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community services Capital outlay Total Charges to Appropriations Budget Amounts Original Final $ 41,501 $ 41,501 Actual Amounts $ 41,501 Variance with Final Budget Positive (Negative) - 115,000 74,803 (40,197) - - (896) (896) 41,501 156,501 115,408 (41,093) 580 64,280 53,163 11,117 - 51,300 38,966 12,334 580 115,580 92,129 23,451 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 40,921 $ 40,921 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 176 23,279 $ (17,642) 6,296 $ 29,575 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) AB 2928 TRAFFIC CONGESTION RELIEF YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 295,497 $ 295,497 $ 295,497 $ - Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances - - (2,547) (2,547) 295,497 295,497 292,950 (2,547) 80 80 80 - 80 80 80 - $ 295,417 $ 295,417 292,870 $ (2,547) Budgetary Fund Balance, June 30 (GAAP Basis) $ 292,870 177 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LITTER REDUCTION GRANT YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): 68,910 68,910 67,817 (1,093) - - (340) (340) - - 1,500 1,500 68,910 68,910 68,977 67 Engineering and public works 68,910 68,910 68,977 (67) Total Charges to Appropriations 68,910 68,910 68,977 (67) Budgetary Fund Balance, June 30 (Budgetary Basis) $ - $ - - $ - Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ - 178 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAFETEA-LU GRANT YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Capital outlay Total Charges to Appropriations 3,951,810 3,951,810 833,891 (3,117,919) 28,740 8,020 6,313 (1,707) 3,980,550 3,959,830 840,204 (3,119,626) - 840,204 5,091,000 4,250,796 G AAA AAA G AAA AAA Budgetary Fund Balance, June 30 (Budgetary Basis) $(1,110,450) $ (1,131,170) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 179 840,204 - - 4,250,796 840,204 4,250,796 - $ 1,131,170 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) UNDERGROUND UTILITIES YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Charges for services Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Budget Amounts Original Final $ 11,805,239 $ 11,805,239 Actual Amounts $ 11,805,239 Variance with Final Budget Positive (Negative) 50,000 25,000 - (25,000) 139,360 134,770 39,430 (95,340) 11,994,599 11,965,009 11,844,669 (120,340) Engineering and public works 17,730 646,388 646,387 1 Capital outlay 1,383,930 1,896,102 495,933 1,400,169 Total Charges to Appropriations 1,401,660 2,542,490 1,142,320 1,400,170 Budgetary Fund Balance, June 30 (Budgetary Basis) $10,592,939 $ 9,422,519 10,702,349 $ 1,279,830 Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $10,702,349 180 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAFE ROUTES TO SCHOOL PROGRAM YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (92,839) $ (92,839) $ (92,839) $ - Resources (Inflows): Intergovernmental 148,560 148,560 29,822 (118,738) Amounts Available for Appropriations 55,721 55,721 (63,017) (118,738) Charges to Appropriation (Outflow): Engineering and public works 57,400 6,180 6,166 14 Total Charges to Appropriations 57,400 6,180 6,166 14 Budgetary Fund Balance, June 30 (Budgetary Basis) $ (1,679) $ 49,541 (69,183) $ (118,724) Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ (69,183) 181 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COPS HIRING PROGRAM GRANT YEAR ENDED JUNE 30, 2017 Budget Amounts Original Final Budgetary Fund Balance, July 1 $ - $ - Resources (Inflows): Intergovernmental 135,000 - Transfers in 367,580 - Amounts Available for Appropriations 502,580 - Charges to Appropriation (Outflow): Public safety 502,580 - Total Charges to Appropriations 502,580 Budgetary Fund Balance, June 30 (Budgetary Basis) $ - $ Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 182 Variance with Final Budget Actual Positive Amounts (Negative) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CITYWIDE INFRASTRUCTURE IMPROVEMENT YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Budget Amounts Original Final $ 25,699,962 $25,699,962 Actual Amounts $ 25,699,962 Variance with Final Budget Positive (Negative) 3,400,000 3,800,000 3,791,763 (8,237) 170,610 300,640 98,630 (202,010) - 107,590 568,942 461,352 29,270,572 29,908,192 30,159,297 251,105 Engineering and public works 76,580 134,082 101,295 32,787 Capital outlay 10,170,000 8,609,308 2,443,164 6,166,144 Total Charges to Appropriations 10,246,580 8,743,390 2,544,459 6,198,931 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 19,023,992 $21,164,802 27,614,838 $ 6,450,036 Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 27,614,838 183 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 1B - SLPP YEAR ENDED JUNE 30, 2017 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 184 $ 3,049 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 3,235 $ 3,235 $ 3,235 $ - Resources (inflows): Intergovernmental 19,920 19,920 - (19,920) Use of money and property 11,430 40 (186) (226) Amounts Available for Appropriation 34,585 23,195 3,049 (20,146) Charges to Appropriation (Outflow): Capital outlay 19,920 19,920 - 19,920 Total Charges to Appropriations 19,920 19,920 - 19,920 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 14,665 $ 3,275 3,049 $ (226) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 184 $ 3,049 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CA STATE LIBRARY STAFF INNOVATION FUND GRANT YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental 6,800 40,990 6,706 (34,284) Use of money and property 2,290 2,900 885 (2,015) Amounts Available for Appropriations 9,090 43,890 7,591 (36,299) Charges to Appropriation (Outflow): Parks and recreation 43,890 43,890 7,591 36,299 Total Charges to Appropriations 43,890 43,890 7,591 36,299 Budgetary Fund Balance, June 30 (Budgetary Basis) $ (34,800) $ Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 185 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) THE BIG READ LIBRARY GRANT YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Budget Amounts Original Final $ 19,999 $ 19,999 Actual Amounts $ 19,999 Variance with Final Budget Positive (Negative) 15,000 14,000 3,491 (10,509) - - (224) (224) 5,000 5,000 - (5,000) 39,999 38,999 23,266 (15,733) Parks and recreation 20,000 20,530 3,266 17,264 Total Charges to Appropriations 20,000 20,530 3,266 17,264 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 19,999 $ 18,469 20,000 $ 1,531 Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ 20,000 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HOMELAND SECURITY GRANT - FIRE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental 32,280 32,280 32,523 243 Use of money and property - - (243) (243) Amounts Available for Appropriations 32,280 32,280 32,280 - Charges to Appropriation (Outflow): Capital outlay 32,280 32,280 32,280 - Total Charges to Appropriations 32,280 32,280 32,280 - Budgetary Fund Balance, June 30 (Budgetary Basis) $ - $ - - $ - Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ - 187 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PUBLIC RESOURCE GRANTS YEAR ENDED JUNE 30, 2017 188 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 9,999 $ 9,999 $ 9,999 $ - Resources (Inflows): Intergovernmental 40,000 40,000 52,440 12,440 Use of money and property - - (141) (141) Contributions 9,510 9,510 10,000 490 Miscellaneous 220 - 460 460 Amounts Available for Appropriations 59,729 59,509 72,758 13,249 Charges to Appropriation (Outflow): General government 49,730 82,212 87,606 (5,394) Total Charges to Appropriations 49,730 82,212 87,606 (5,394) Budgetary Fund Balance, June 30 (Budgetary Basis) $ 9,999 $ (22,703) (14,848) $ 7,855 Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ (14,848) 188 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 113 YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 241,601 $ 241,601 $ 241,601 $ - Resources (Inflows): Use of money and property 2,860 2,770 813 (1,957) Amounts Available for Appropriations 244,461 244,371 242,414 (1,957) Charges to Appropriation (Outflow): Community development 60 60 Total Charges to Appropriations 60 60 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 244,401 $ 244,311 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 189 60 - 60 - 242,354 $ (1,957) zo L4L,354 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HENDERSON / WARDMAN DRAINAGE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 986,903 $ 986,903 $ 986,903 $ - Resources (Inflows): Use of money and property - - (8,526) (8,526) Amounts Available for Appropriation 986,903 986,903 978,377 (8,526) Charges to Appropriation (Outflow): Public works 300 300 Total Charges to Appropriations 300 300 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 986,603 $ 986,603 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 190 300 - 300 - 978,077 $ (8,526) $ 978,077 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) INTEGRATED WASTE MANAGEMENT YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Licenses and permits Use of money and property Miscellaneous Budget Amounts Original Final $ 3,263,236 $ 3,263,236 1,210,490 34,000 25,890 275,000 Amounts Available for Appropriations 4,808,616 Charges to Appropriation (Outflow): Engineering and public works 1,273,070 Capital outlay - Transfers out 350,170 Total Charges to Appropriations 1,623,240 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 3,185,376 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 191 Actual Amounts $ 3,263,236 Variance with Final Budget Positive (Negative) 1,235,440 1,134,367 (101,073) 34,000 27,985 (6,015) 30,200 7,172 (23,028) 842,550 754,463 (88,087) 5,405,426 5,187,223 (218,203) 1,243,700 1,167,952 75,748 355,350 355,348 2 350,170 350,170 - 1,949,220 1,873,470 75,750 $ 3,456,206 3,313,753 $ (142,453) $ 3,313,753 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 42 - TRAFFIC CONGESTION MITIGATION YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 205,874 $ 205,874 $ 205,874 $ - Resources (Inflows): Use of money and property 2,710 2,360 676 (1,684) Amounts Available for Appropriations 208,584 208,234 206,550 (1,684) Charges to Appropriation (Outflow): Engineering and public works 250 250 Total Charges to Appropriations 250 250 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 208,334 $ 207,984 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 192 250 - 250 - 206,300 $ (1,684) zo Zun,suu CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) FREEDOM COURTYARD RESOURCE GRANT YEAR ENDED JUNE 30, 2017 Budget Amounts Original Final Budgetary Fund Balance, July 1 $ - $ - Resources (Inflows): Use of money and property 30 30 Amounts Available for Appropriations 30 30 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 30 $ 30 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 193 Variance with Final Budget Actual Positive Amounts (Negative) - (30) (30) $ (30) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 194 $ 2,144 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2,539 $ 2,539 $ 2,539 $ - - - 25,507 25,507 - - (435) (435) 2,539 2,539 27,611 25,072 - 25,487 25,467 20 - 25,487 25,467 20 $ 2,539 $ (22,948) 2,144 $ 25,092 194 $ 2,144 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) EMERGENCY MANAGEMENT PERFORMANCE GRANT YEAR ENDED JUNE 30, 2017 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 195 $ (28) Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (30) $ (30) $ (30) $ - Resources (Inflows): Intergovernmental 33,450 33,220 33,218 (2) Use of money and property - - 2 2 Amounts Available for Appropriation 33,420 33,190 33,190 - Charges to Appropriation (Outflow): Public safety 33,450 33,220 33,218 2 Total Charges to Appropriations 33,450 33,220 33,218 2 Budgetary Fund Balance, June 30 (Budgetary Basis) $ (30) $ (30) (28) $ 2 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 195 $ (28) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HOMELAND SECURITY GRANT - POLICE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental - - 18,877 18,877 Amounts Available for Appropriations - - 18,877 18,877 Charges to Appropriation (Outflow): Public safety - 28,740 18,914 9,826 Total Charges to Appropriations - 28,740 18,914 9,826 Budgetary Fund Balance, June 30 (Budgetary Basis) $ - $ (28,740) (37) $ 28,703 Encumbrances - Budgetary Fund Balance, June 30 (GAAP Basis) $ (37) CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) USED OIL RECYCLING PROGRAM YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 52,810 52,810 49,811 (2,999) 260 230 (124) (354) 53,070 53,040 49,687 (3,353) 53,050 52,300 45,622 6,678 53,050 52,300 45,622 6,678 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 20 $ 740 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 197 4,065 $ 3,325 $ 4,065 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIBRARY IMPACT FEE YEAR ENDED JUNE 30, 2017 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 198 $ 423,913 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 240,159 $ 240,159 $ 240,159 $ - Resources (inflows): Charges for services 50,000 50,000 183,164 133,164 Use of money and property 2,310 2,880 590 (2,290) Amounts Available for Appropriation 292,469 293,039 423,913 130,874 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 292,469 $ 293,039 423,913 $ 130,874 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 198 $ 423,913 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) POLICE IMPACT FEE YEAR ENDED JUNE 30, 2017 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 199 $ 232,917 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 112,338 $ 112,338 $ 112,338 $ - Resources (inflows): Charges for services 40,000 40,000 120,240 80,240 Use of money and property 1,120 1,440 339 (1,101) Amounts Available for Appropriation 153,458 153,778 232,917 79,139 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 153,458 $ 153,778 232,917 $ 79,139 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 199 $ 232,917 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ANIMAL CENTER IMPACT FEE YEAR ENDED JUNE 30, 2017 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 200 $ 86,261 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 51,757 $ 51,757 $ 51,757 $ - Resources (inflows): Charges for services 15,000 15,000 34,364 19,364 Use of money and property 530 620 140 (480) Amounts Available for Appropriation 67,287 67,377 86,261 18,884 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 67,287 $ 67,377 86,261 $ 18,884 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 200 $ 86,261 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PARK LAND ACQUISITION YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriation Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) $ 215,989 $ 215,749 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 201 1,155,705 $ 939,956 $ 1,155,705 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 84,549 $ 84,549 $ 84,549 $ - 1,440 1,200 (1,840) (3,040) 130,000 130,000 1,072,996 942,996 215,989 215,749 1,155,705 939,956 Budgetary Fund Balance, June 30 (Budgetary Basis) $ 215,989 $ 215,749 Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 201 1,155,705 $ 939,956 $ 1,155,705 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT DISTRICT 82-1 YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 202 $ 13,203 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 13,141 $ 13,141 $ 13,141 $ - 160 160 62 (98) 13,301 13,301 13,203 (98) $ 13,301 $ 13,301 13,203 $ (98) 202 $ 13,203 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT DISTRICT 84-1 YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 203 $ 1,122,223 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $1,118,794 $ 1,118,794 $ 1,118,794 $ - 13,260 12,810 3,719 (9,091) 1,132,054 1,131,604 1,122,513 (9,091) 290 290 290 - 290 290 290 - $1,131,764 $ 1,131,314 1,122,223 $ (9,091) 203 $ 1,122,223 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2001-01 YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 130 130 $ 501,506 $ 501,316 204 130 - 497,299 $ (4,017) $ 497,299 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 495,766 $ 495,766 $ 495,766 $ - 5,870 5,680 1,663 (4,017) 501,636 501,446 497,429 (4,017) 130 130 $ 501,506 $ 501,316 204 130 - 497,299 $ (4,017) $ 497,299 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE ETIWANDA EQUESTRIAN FACILITY YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) $ 677,407 205 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 675,346 $ 675,346 $ 675,346 $ - 8,000 7,740 2,251 (5,489) 683,346 683,086 677,597 (5,489) 190 190 190 - 190 190 190 - $ 683,156 $ 682,896 677,407 $ (5,489) Budgetary Fund Balance, June 30 (GAAP Basis) $ 677,407 205 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2004-01 RANCHO ETIWANDA YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 1: $ 48,457 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 76,963 $ 76,963 $ 76,963 $ - 60 60 48 (12) 77,023 77,023 77,011 (12) - 28,560 28,554 6 - 28,560 28,554 6 $ 77,023 $ 48,463 48,457 $ (6) 1: $ 48,457 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2006-01 VINTNER'S GROVE YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) Budget Amounts Original Final $ 1,848 $ 1,848 100,000 100,000 100,000 100,000 $ (98,152) $ (98,152) 207 Actual Amounts $ 1,848 Variance with Final Budget Positive (Negative) 100,000 - 100,000 1,848 $ 100,000 $ 1,848 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2006-02 AMADOR ON ROUTE 66 YEAR ENDED JUNE 30, 2017 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Budgetary Fund Balance, June 30 (Budgetary Basis) Encumbrances Budgetary Fund Balance, June 30 (GAAP Basis) 208 $ 6,084 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 6,070 $ 6,070 $ 6,070 $ - 80 70 14 (56) 6,150 6,140 6,084 (56) $ 6,150 $ 6,140 6,084 $ (56) 208 $ 6,084 CITY OF RANCHO CUCAMONGA Non -Major Proprietary Funds Proprietary Funds are used to account for a government's ongoing organizations and activities that are similar to businesses found in the private sector. These funds are considered self-supporting in that the services rendered by them are generally financed through user charges or on a cost reimbursement basis. REGIS Connect Fund - Accounts for costs associated with the development of the Rancho Cucamonga Enterprise GIS Connect Program which provides services to the City and agency partners that are in need of their expertise. Fiber Optic Network Fund - Accounts for costs associated with the City's existing utility, information technology and traffic fiber conduits and leases for conduit and fiber access. 209 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET POSITION NON -MAJOR PROPRIETARY FUNDS JUNE 30, 2017 Assets: Current: Cash and investments Receivables: Accounts Accrued interest Total Current Assets Noncurrent: Capital assets - net of accumulated depreciation Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Due to other funds Total Current Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Business -Type Activities - Enterprise Funds REGIS Fiber Optic Connect Network Totals $ 70,831 $ 23,626 $ 94,457 39,240 - 39,240 71 16 87 110,142 23,642 133,784 - 4,560,732 4,560,732 - 4,560,732 4,560,732 $ 110,142 $ 4,584,374 $ 4,694,516 $ 309 $ - $ 309 72,086 - 72,086 72,395 - 72,395 72,395 - 72,395 210 - 4,560,732 4,560,732 37,747 23,642 61,389 37,747 4,584,374 4,622,121 $ 110,142 $ 4,584,374 $ 4,694,516 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION NON -MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2017 Operating Revenues: Sales and service charges Total Operating Revenues Operating Expenses: Contractual services Maintenance and operations Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Contributions Total Nonoperating Revenues(Expenses) Changes in Net Position Net Position: Beginning of Year End of Fiscal Year 211 Business -Type Activities - Enterprise Funds REGIS Fiber Optic $ 114,120 $ 23,750 $ 137,870 114,120 23,750 137,870 500 500 167,618 - 167,618 (53,498) 23,750 (29,748) 89 (108) (19) 89 4,560,624 4,560,713 (53,409) 4,584,374 4,530,965 91,156 - 91,156 $ 37,747 $ 4,584,374 $ 4,622,121 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS NON -MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2017 Business -Type Activities - Enterprise Funds Cash Flows from Operating Activities: Cash received from customers and users Cash paid to suppliers for goods and services Net Cash Provided (Used) by Operating Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: (Increase) decrease in accounts receivable Increase (decrease) in accounts payable Increase (decrease) in due to other funds Total Adjustments Net Cash Provided (Used) by Operating Activities Non -Cash Investing, Capital, and Financing Activities: Acquisition of capital assets from City contribution 212 REGIS Fiber Optic $ 98,370 $ 23,750 $ 122,120 (99,033) - (99,033) (663) 23,750 23,087 56 (124) (68) 56 (124) (68) (607) 23,626 23,019 71,438 - 71,438 $ 70,831 $ 23,626 $ 94,457 $ (53,498) $ 23,750 $ (29,748) (15,750) - (15,750) 23 - 23 68,562 - 68,562 52,835 - 52,835 $ (663) $ 23,750 $ 23,087 $ - $ 4,560,732 $ 4,560,732 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. 213 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2017 Assets: Current: Cash and investments Receivables: Accounts Accrued interest Prepaid costs Due from other funds Total Current Assets Noncurrent: Capital assets - net of accumulated depreciation Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Capital leases Total Current Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position 214 Computer Equipment and Equipment/ Vehicle Technology Replacement Replacement Total $ 2,691,485 $ 2,669,413 $ 5,360,898 - 29,020 29,020 5,724 4,460 10,184 14,905 - 14,905 30,000 - 30,000 2,742,114 2,702,893 5,445,007 4,768,998 1,621,558 6,390,556 4,768,998 1,621,558 6,390,556 $ 7,511,112 $ 4,324,451 $ 11,835,563 $ 43,775 $ 8,891 $ 52,666 56,760 410,710 467,470 100,535 419,601 520,136 100,535 419,601 520,136 4,712,238 1,210,848 5,923,086 2,698,339 2,694,002 5,392,341 7,410,577 3,904,850 11,315,427 $ 7,511,112 $ 4,324,451 $ 11,835,563 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2017 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Operating Revenues: Sales and service charges $ - $ 261,190 $ 261,190 Total Operating Revenues Operating Expenses: Contractual services Maintenance and operations Depreciation expense Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Interest expense Miscellaneous Total Nonoperating Revenues(Expenses) Income (Loss) Before Transfers Transfers in Transfers out Changes in Net Position Net Position: Beginning of Year End of Fiscal Year 215 261,190 261,190 345,591 31,786 377,377 158,548 187,334 345,882 713,786 363,895 1,077,681 1,217,925 583,015 1,800,940 (1,217,925) (321,825) (1,539,750) 12,146 6,767 18,913 (2,785) (29,658) (32,443) 82,389 82,389 9,361 59,498 68,859 (1,208,564) (262,327) (1,470,891) 30,000 564,160 594,160 - (3,760) (3,760) (1,178,564) 298,073 (880,491) 8,589,141 3,606,777 12,195,918 $ 7,410,577 $ 3,904,850 $ 11,315,427 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2017 Cash Flows from Operating Activities: Cash received from customers and users Cash paid to suppliers for goods and services Net Cash Provided (Used) by Operating Activities Cash Flows from Non -Capital Financing Activities: Cash transfers out Cash transfers in Miscellaneous Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Total Adjustments Net Cash Provided (Used) by Operating Activities 216 Equipment and Vehicle Replacement (885,691) (885,691) 30,000 Computer Equipment/ Technology Replacement $ 232,170 (303,473) (71,303) (3,760) 564,160 82,389 T-04 1 $ 232,170 (1,189,164) (956,994) (3,760) 594,160 82,389 30,000 642,789 672,789 (3,365,845) (433,850) (3,799,695) (66,268) (459,905) (526,173) (2,785) (29,658) (32,443) (3,434,898) (923,413) (4,358,311) 11,718 4,469 16,187 11,718 4,469 16,187 (4,278,871) 6,970,356 $ 2,691,485 (347,458) 3,016,871 $ 2,669,413 (4,626,329) 9,987,227 $ 5,360,898 $ (1,217,925) $ (321,825) $ (1,539,750) 713,786 363,895 1,077,681 - (29,020) (29,020) (14,905) - (14,905) (366,647) (84,353) (451,000) 332,234 250,522 582,756 $ (885,691) $ (71,303) $ (956,994) THIS PAGE INTENTIONALLY LEFT BLANK 217 CITY OF RANCHO CUCAMONGA Agency Funds Agency funds are used to account for assets held by the City as trustee or agent for individuals, private organizations, or other governmental units, and/or other funds. Special Deposits Fund - Established to account for all deposits held by the City in its fiduciary capacity. Assessment District 82-1 Fund - Established to account for assessments received under the Refunding Act of 1984 for 1915 Improvement Act Bonds. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation proper coupons. Assessment District 84-2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 85 -PD Fund - Established to account for assessments received under the Refunding Act of 1984 for 1915 Improvement Act Bonds and Landscape/Lighting Act of 1972. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons Community Facilities District 88-2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 91-2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. 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. 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 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. 218 CITY OF RANCHO CUCAMONGA Agency Funds (Continued) 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. 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. Special Tax Refunding Bonds 2015 Fund - 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. CFD 2017-01 No. Etiwanda Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to the proposed Community Facilities District 2017-01. 219 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2017 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Accrued liabilities Deposits payable Payable to trustee Due to external parties/other agencies Total Liabilities 220 Special Assessment Assessment Assessment Deposits District 82-1 District 84-2 District 85 -PD $ 8,021,898 $ 47 $ 46 $ 1,501,706 108,355 - - 3,787 535 - - 16,934 - - - 3,000 $ 8,130,788 $ 47 $ 46 $ 1,525,427 $ 2,335 $ - $ - $ 73,405 17,400 - - 6,848 8,052,743 - - - 58,310 47 46 1,445,174 $ 8,130,788 $ 47 $ 46 $ 1,525,427 220 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2017 (CONTINUED) Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Accrued liabilities Deposits payable Payable to trustee Due to external parties/other agencies Total Liabilities AD 93-1 Masi Assessment Assessment Commerce CFD 88-2 District 91-2 District 99-1 Center $ 4,434,220 $ 44,263 $ 301,551 $ 510,318 - - 7,746 - - 324 - - 5,588 81 591 1,004 - - - 242,656 $ 4,439,808 $ 44,668 $ 309,888 $ 753,978 1,755 - - 4,439,808 42,913 309,888 753,978 $ 4,439,808 $ 44,668 $ 309,888 $ 753,978 221 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2017 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Accrued liabilities Deposits payable Payable to trustee Due to external parties/other agencies Total Liabilities CFD 2000-03 Rancho CFD 2003-01 CFD 2003-01 Summit Series A Series B Redemption $ 689,365 $ 205,450 $ 382,863 CFD 2000-03 Rancho Summit 3,779 - 6,210 - 1,356 304 754 - 1,418,246 132,592 7 262,070 $ 2,112,746 $ 338,346 $ 389,834 $ 262,070 2,112,746 338,346 389,834 262,070 $ 2,112,746 $ 338,346 $ 389,834 $ 262,070 222 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2017 (CONTINUED) Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Accrued liabilities Deposits payable Payable to trustee Due to external parties/other agencies Total Liabilities CFD 2000-03 Employee Park Deduction Assessment CFD 2004-01 Maintenance Account District 82-2 $ 1,982,940 $ 507,148 $ 165,396 $ 5 27,937 4,962 - - 3,885 1,047 - - 1,190,461 - - - $ 3,205,223 $ 513,157 $ 165,396 $ 5 $ - $ 10,922 $ - $ - 6,524 3,267 3,205,223 495,711 - - - 162,129 $ 3,205,223 $ 513,157 $ 165,396 $ 223 5 5 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2017 Assets: Cash and investments Receivables: Accounts Taxes Accrued interest Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Accrued liabilities Deposits payable Payable to trustee Due to external parties/other agencies Total Liabilities 224 Special Tax Refunding CFD 2017-01 Bonds 2015 No. Etiwanda Total $ 1,571,007 $ 36,980 $ 20,355,203 100,000 - 219,888 10,626 - 71,307 1,990 81 19,681 776,657 - 4,022,689 $ 2,460,280 $ 37,061 $ 24,688,768 $ - $ 1,796 $ 88,458 - - 35,794 - 35,140 8,087,883 2,460,280 125 16,314,504 - - 162,129 $ 2,460,280 $ 37,061 $ 24,688,768 THIS PAGE INTENTIONALLY LEFT BLANK 225 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) Balance Balance 7/1/2016 Additions Deductions 6/30/2017 Soecial Denosits Assets: Cash and investments $ 7,885,992 $ 1,425,783 $ 1,289,877 $ 8,021,898 Receivables: Accounts 108,757 146,276 146,678 108,355 Taxes - 548 13 535 Total Assets $ 7,994,749 $ 1,572,607 $ 1,436,568 $ 8,130,788 Liabilities: Accounts payable $ 5,734 $ 595,111 $ 598,510 $ 2,335 Accrued liabilities 17,500 - 100 17,400 Deposits payable 7,966,114 1,938,528 1,851,899 8,052,743 Payable to trustee 5,401 63,603 10,694 58,310 Total Liabilities $ 7,994,749 $ 2,597,242 $ 2,461,203 $ 8,130,788 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 $ 1,246,683 $ 1,543,215 $ 1,288,192 $ 1,501,706 Receivables: Accounts 2,518 2,144 875 3,787 Taxes 15,117 16,934 15,117 16,934 Accrued interest 665 3,000 665 3,000 Total Assets $ 1,264,983 $ 1,565,293 $ 1,304,849 $ 1,525,427 Liabilities: Accounts payable $ 37,406 $ 730,804 $ 694,805 $ 73,405 Accrued liabilities 16,426 6,848 16,426 6,848 Payable to trustee 1,211,151 1,655,958 1,421,935 1,445,174 Total Liabilities $ 1,264,983 $ 2,393,610 $ 2,133,166 $ 1,525,427 226 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2017 CFD 88-2 Assets: Cash and investments Receivables: Accrued interest Total Assets Liabilities: Accounts payable Payable to trustee Total Liabilities Assessment District 91-2 Assets: Cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Accrued liabilities Payable to trustee Total Liabilities Assessment District 99-1 Assets: Cash and investments Receivables: Accounts Accrued interest Total Assets Liabilities: Payable to trustee Total Liabilities AD 93-1 Masi Commerce Center Assets: Cash and investments Receivables: Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Balance Balance 7/1/2016 Additions Deductions 6/30/2017 $ 4,445,473 $ 36,884 $ 48,137 $ 4,434,220 2,042 5,588 2,042 5,588 $ 4,447,515 $ 42,472 $ 50,179 $ 4,439,808 $ 68,511 $ 33,968 $ 57,811 $ 44,668 $ 1,120 $ 15,910 $ 17,030 $ - $ 4,446,395 $ 36,884 $ 43,471 $ 4,439,808 $ 4,447,515 $ 52,794 $ 60,501 $ 4,439,808 $ 68,235 $ 33,563 $ 57,535 $ 44,263 231 324 231 324 45 81 45 81 $ 68,511 $ 33,968 $ 57,811 $ 44,668 $ 1,840 $ 1,758 $ 1,843 $ 1,755 66,671 35,730 59,488 42,913 $ 68,511 $ 37,488 $ 61,331 $ 44,668 $ 301,023 $ 3,808 $ 3,280 $ 301,551 7,746 - - 7,746 215 591 215 591 $ 308,984 $ 4,399 $ 3,495 $ 309,888 $ 308,984 $ 3,808 $ 2,904 $ 309,888 $ 308,984 $ 3,808 $ 2,904 $ 309,888 $ 504,718 $ 287 242,500 _ $ 747,505 $ 250,086 $ 244,486 $ 510,318 1,004 287 1,004 170 14 242,656 251,260 $ 244,787 $ 753,978 Liabilities: Payable to trustee $ 747,505 $ 250,255 $ 243,782 $ 753,978 Total Liabilities $ 747,505 $ 250,255 $ 243,782 $ 753,978 227 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) Balance Balance 7/1/2016 Additions Deductions 6/30/2017 CFD 2003-01 Series A Assets: Cash and investments Receivables: Taxes Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Payable to trustee Total Liabilities CFD 2003-01 Series B Assets: Cash and investments Receivables: Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Payable to trustee Total Liabilities CFD 2000-03 Rancho Summit Redemption Assets: Cash and investments Receivables: Taxes Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Payable to trustee Total Liabilities CFD 2000-03 Rancho Summit Reserve Assets: Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Payable to trustee Total Liabilities $ 694,452 $ 1,048,739 $ 1,053,826 $ 689,365 127 3,779 127 3,779 240 1,356 240 1,356 1,417,060 1,532 346 1,418,246 $ 2,111,879 $ 1,055,406 $ 1,054,539 $ 2,112,746 $ 2,111,879 $ 1,054,050 $ 1,053,183 $ 2,112,746 $ 2,111,879 $ 1,054,050 $ 1,053,183 $ 2,112,746 $ 207,757 $ 195,339 $ 197,646 $ 205,450 101 304 101 304 132,479 145 32 132,592 $ 340,337 $ 195,788 $ 197,779 $ 338,346 $ 340,337 $ 195,484 $ 197,475 $ 338,346 $ 340,337 $ 195,484 $ 197,475 $ 338,346 $ 403,664 $ 545,295 $ 566,096 $ 382,863 2,273 6,210 2,273 6,210 148 754 148 754 3 297 293 7 $ 406,088 $ 552,556 $ 568,810 $ 389,834 $ 406,088 $ 551,802 $ 568,056 $ 389,834 $ 406,088 $ 551,802 $ 568,056 $ 389,834 $ 262,111 $ 248 $ 289 $ 262,070 $ 262,111 $ 248 $ 289 $ 262,070 $ 262,111 $ $ 262,111 $ 228 248 $ 248 $ 289 $ 262,070 289 $ 262,070 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2017 CFD 2004-01 Assets: Cash and investments Receivables: Taxes Accrued interest Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Payable to trustee Total Liabilities CFD 2000-03 Park Maintenance Assets: Cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Accounts payable Accrued liabilities Payable to trustee Total Liabilities Employee Deduction Account Assets: Cash and investments Total Assets Liabilities: Accrued liabilities Due to external parties/other agencies Total Liabilities Assessment District 82-2 Assets: Cash and investments Total Assets Liabilities: Payable to trustee Total Liabilities Balance Balance 7/1/2016 Additions Deductions 6/30/2017 $ 1,946,255 $ 2,456,486 $ 2,419,801 $ 1,982,940 34,647 27,937 34,647 27,937 814 3,885 814 3,885 1,189,450 1,307 296 1,190,461 $ 3,171,166 $ 2,489,615 $ 2,455,558 $ 3,205,223 $ 3,171,166 $ 2,475,814 $ 2,441,757 $ 3,205,223 $ 3,171,166 $ 2,475,814 $ 2,441,757 $ 3,205,223 $ 497,049 $ 455,120 $ 445,021 $ 507,148 1,755 4,962 1,755 4,962 287 1,047 287 1,047 $ 499,091 $ 461,129 $ 447,063 $ 513,157 $ 18,515 $ 142,225 $ 149,818 $ 10,922 6,168 6,524 6,168 6,524 474,408 466,681 445,378 495,711 $ 499,091 $ 615,430 $ 601,364 $ 513,157 $ 95,438 $ 484,127 $ 414,169 $ 165,396 $ 95,438 $ 484,127 $ 414,169 $ 165,396 $ 7,733 $ - $ 4,466 $ 3,267 87,705 312,995 238,571 162,129 $ 95,438 $ 312,995 $ 243,037 $ 165,396 $ 5 $ - $ - $ 5 $ 5 $ - $ - $ 5 $ 5 $ $ - $ 5 $ 5 $ - $ - $ 5 229 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2017 (CONTINUED) Cash and investments $ Balance $ 70,301 $ 33,321 $ Balance Receivables: 7/1/2016 Additions Deductions 6/30/2017 Special Tax Refunding Bonds 2015 - 81 - 81 Assets: $ - $ 70,382 $ 33,321 $ 37,061 Cash and investments $ 1,490,704 $ 1,798,206 $ 1,717,903 $ 1,571,007 Receivables: Accounts payable - Accounts 34,860 100,000 33,064 - 1,796 - 100,000 Taxes 70,000 6,825 34,860 10,626 35,140 6,825 10,626 Accrued interest 125 426 - 1,991 125 427 $ 1,990 Restricted assets: 104,985 $ 67,924 $ 37,061 Totals - All Agency Funds Cash and investments with fiscal agents 803,740 29,228 56,311 776,657 Total Assets $ 2,401,695 $ 1,840,051 $ 1,781,466 $ 2,460,280 Liabilities: 10,346,952 $ 9,779,290 $ 20,355,203 Receivables: Payable to trustee $ 2,401,695 $ 1,838,060 $ 1,779,475 $ 2,460,280 Total Liabilities $ 2,401,695 $ 1,838,060 $ 1,779,475 $ 2,460,280 CFD 2017-01 No. Etiwanda Assets: Cash and investments $ - $ 70,301 $ 33,321 $ 36,980 Receivables: Accrued interest - 81 - 81 Total Assets $ - $ 70,382 $ 33,321 $ 37,061 Liabilities: Accounts payable - 34,860 33,064 1,796 Deposits payable - 70,000 34,860 35,140 Payable to trustee - 125 - 125 Total Liabilities $ - $ 104,985 $ 67,924 $ 37,061 Totals - All Agency Funds Assets: Cash and investments $ 19,787,541 $ 10,346,952 $ 9,779,290 $ 20,355,203 Receivables: Accounts 219,021 148,420 147,553 219,888 Taxes 60,975 71,320 60,988 71,307 Accrued interest 5,270 19,682 5,271 19,681 Restricted assets: Cash and investments with fiscal agents 4,047,343 32,927 57,581 4,022,689 Total Assets $ 24,120,150 $ 10,619,301 $ 10,050,683 $ 24,688,768 Liabilities: Accounts payable $ 62,775 $ 1,518,910 $ 1,493,227 $ 88,458 Accrued liabilities 49,667 15,130 29,003 35,794 Deposits payable 7,966,114 2,008,528 1,886,759 8,087,883 Payable to trustee 15,953,889 8,628,502 8,267,887 16,314,504 Due to external parties/other agencies 87,705 312,995 238,571 162,129 Total Liabilities $ 24,120,150 $ 12,484,065 $ 11,915,447 $ 24,688,768 230 RANCHO CUCAMONGA 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 say about the City's overall financial health. Contents Page 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. 233-237 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. 238-243 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. 244-249 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. 250-251 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. 252-254 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 231 THIS PAGE INTENTIONALLY LEFT BLANK 232 Q Z O � O O C U a y o E } U U p U O T N p _ N Z O N CU N H 0 V COL N 7 LL (D J U Q Z Lv F- U 233 M^ co O O� O N O d r0 N O C'M 7 n 0 O CA 0 0 000 ^ n O O O C N O LO r M 0 CO M 0 0 0 r O 0 M co O l0O ONJ LO COO l0O M (00 N co M n M M Cl) co M O @ p @ "0 N CO 0 @ C a) "O N CO O) C O V) V) V) V) V) V) (U C (0 W 0 N 0 CO CO Cl) 7 N 0) ... 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_ wE T U @ @ U C O s @ O @ c N a) @ @ C) 'Q c L 0- N -O E O a) O °' N m Q a) X n 3 N @ 3 Q m Q m o 0 a) N a) -00 U a) Co 0 O a N - > a) N @ C ;6 -° o N @ LL s@ Z O m H t U x @ n Q@ i:- o - O c N c M (D ID @ c @ °) 0 @ U c @ N N Co N y N o vi m Co c c °� @ w 3 fl> 3 ai ami o s m 3 m > (Da) c oo o a) n a) w @ ° o O CL 0 0 ° 3 Vl Q C U 0 Q 00 @ m o a 0 o .c m e N c @ m ( m @ a) c a) O @ E O N Nc T a) E T O> @ @ Q 0 X ° x ' 6 O U N L cn T T -0 r c N C Q @ c N @ O a) E If O � m w ) w C6 O 0 n w N cp T y cn O a) c c O U @ c N a) N -O '6 H @ E .O cn c Q E (D _ @ Q c @ y c Co U .0 c N O C,@ Vi x 3 >i 0 0N O Q (6 N M C O_ T N LY a) N- o O 2 ° Co c v o `m @ a) U o a) o w ro `o (D -C L 0 U (� x 0) 01 T Co a) 0) a) .L.. a) Q 3>, a a) m m 'a m m 'c i o 0 fn c @ a) C w a) .� �O -O CL Co U -0 w N 0 7 0° o ° a) -oa o 'o CO ro C a) ( N _0 @ C O_ Q T O C '� CU @ @ (D 0 00 N Q CL a) N > 0E 2 '6 '@ >O U .L.-� @ J c° < Un 0 '6 @ O N o @ LY C) @ -O a) E c 7 N y a) E o a) m o a) @ m o a) m LY a) v _r_ U) L W T Q r@ @ T L r n> N N N N N C O r t m m fn w a) O> O w a N E @> N> 4i mQ O Q U w (� > @ �' - 0- M v z CITY OF RANCHO CUCAMONGA Principal Property Taxpayers Current Year and Nine Years Ago Source: San Bernardino County Assessor 2007/08 and 2016/17 Combined Tax Rolls and the SBE Non Unitary Tax Roll; HdL, Coren & Cone 240 2017 2008 Percent of Percent of Total City Total City Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Homecoming I at Terra Vista LLC $ 265,827,407 1.12% $ 85,710,827 0.44% Rancho Mall LLC 256,374,242 1.08% - 0.00% Prologis California I LLC/Catellus 140,656,508 0.59% - 0.00% Frito-Lay North America Inc 122,238,821 0.51% - 0.00% WNG Rancho Cucamonga 496 LLC 104,990,488 0.44% - 0.00% EQR Fanwell 2007 LP 102,607,760 0.43% 91,749,399 0.47% GS Rancho LLC 100,007,000 0.42% - 0.00% Teachers Insurance and Annuity Assn 90,568,564 0.38% - 0.00% Goodman Rancho SPE LLC 88,688,176 0.37% - 0.00% Knickerbocker Barrington Place LLC 84,000,000 0.35% - 0.00% Victoria Gardens Mall LLC - 0.00% 239,999,914 1.22% RREEF America REIT II Corporation TTTT - 0.00% 95,115,000 0.48% T-NAPF Meritage Ownership LLC - 0.00% 84,051,500 0.43% Calellus Development Corporation - 0.00% 81,360,054 0.41% PPF MF 9200 Milliken Ave LP - 0.00% 73,509,411 0.37% UDR Rancho Cucamonga LP - 0.00% 73,156,867 0.37% Gruma Corporation Mission Foods - 0.00% 68,672,261 0.35% ARI-AOB 29 LLC - 0.00% 67,835,100 0.35% $ 1,355,958,966 5.71% $ 961,160,333 4.89% Source: San Bernardino County Assessor 2007/08 and 2016/17 Combined Tax Rolls and the SBE Non Unitary Tax Roll; HdL, Coren & Cone 240 CITY OF RANCHO CUCAMONGA Property Tax Levies and Collections Last Ten Fiscal Years Total Collections to Date Percent Collected within the of Levy Fiscal Taxes Levied Fiscal Year of Levy Collections in Year Ended for the 96.91% Percent Subsequent June 30 Fiscal Year Amount of Levy Years 2008 $ 91,354,251 $ 90,692,622 99.28% N/A 2009 98,855,469 95,515,265 96.62% N/A 2010 98,181,404 95,149,733 96.91% N/A 2011 95,051,899 89,513,493 94.17% N/A 2012 93,318,030 86,742,369 92.95% N/A 2013 93,235,913 85,131,812 91.31% N/A 2014 95,016,035 93,063,071 97.94% N/A 2015 100,428,866 98,457,115 98.04% N/A 2016 105,120,614 103,112,427 98.09% N/A 2017 108,069,418 107,991,619 99.93% N/A Total Collections to Date 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 241 Percent Amount of Levy $ 90,692,622 99.28% 95,515,265 96.62% 95,149,733 96.91% 89,513,493 94.17% 86,742,369 92.95% 85,131,812 91.31% 93,063,071 97.94% 98,457,115 98.04% 103,112,427 98.09% 107,991,619 99.93% 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 241 THIS PAGE INTENTIONALLY LEFT BLANK 242 CITY OF RANCHO CUCAMONGA Principal Sales Tax Remitters Current Year and Nine Years Ago 2017 Business Name Business Cateclory Anker Electronics/Appliance Stores Apple Electronics/Appliance Stores Bass Pro Shops Outdoor World Sporting Goods/Bike Stores Best Buy Electronics/Appliance Stores Chevron Service Stations Circle K Service Stations Costco Discount Department Stores Home Depot Building Materials ICL Performance Products Drug/Chemicals JC Penney Department Stores Jeromes Home Furnishings Living Spaces Furniture Home Furnishings Lowes Building Materials Macys Department Stores Meadowbrook Meat Company Food Service Equip./Supplies Monoprice Fulfillment Centers Parallon Supplies Chain Solutions Medical /Biotech Ralphs Grocery Stores Liquor Ross Family Apparel Sears Department Stores Target Discount Department Stores USA Gasoline Service Stations Vector Resources Electrical Equipment Walmart Discount Department Stores Walters Wholesale Electric Plumbing/Electrical Supplies * Firms listed alphabetically Source: The HdL Companies; State Board of Equalization Business Name Ameron International Apple Arco AM PM Mini Mart Bass Pro Shops Outdoor World Best Buy Chevron Circuit City Costco Dan Reshaw Mobil Day Creek Arco Home Depot JC Penney Kayo Oil Living Spaces Furniture Lowes Macys Novartis Animal Health Sears Shell/Texaco Southwire Tamco Target Walmart Walters Wholesale Electric West End Material Supply 243 2008 Business Category Contractors Electronics/Appliance Stores Service Stations Sporting Goods/Bike Stores Electronics/Appliance Stores Service Stations Electronics/Appliance Stores Discount Department Stores Service Stations Service Stations Building Materials Department Stores Service Stations Home Furnishings Lumber/Building Materials Department Stores Medical/Biotech Department Stores Service Stations Energy/Utilities Heavy Industrial Discount Department Stores Discount Department Stores Plumbing/Electrical Supplies Building Materials CITY OF RANCHO CUCAMONGA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year General Ended Obligation June 30 Bonds Governmental Activities Tax Capital Allocation Leases Bonds 1 Loans Total Governmental Activities 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 2017 3 - 486,229 - - 486,229 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. 244 Business -type Activities Utility Total Total Percentage Debt Revenue Certificates of Business -type Primary of Personal Per Bonds Participation Activities Government Income 2 Capita 2 445,765,050 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% - - - - 2,615,708 0.05% 15 - - - 2,083,890 0.04% 12 - - - 1,564,076 0.03% 9 - - - 1,034,303 0.02% 6 - - - 486,229 0.01% 3 245 CITY OF RANCHO CUCAMONGA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) Fiscal Year Ended June 30 Outstanding General Obligation Bonds General Bonded Debt Tax Allocation Bonds Total Percent of Assessed Value 1 Percentage of Personal Income 2 Per Capita 2 2008 $ - $ 424,060 $ 424,060 2.16% 8.35% $ 2,438 2009 - 413,655 413,655 2.00% 8.00% 2,355 2010 - 404,990 404,990 2.04% 7.97% 2,287 2011 - 395,920 395,920 2.03% 7.36% 2,213 2012 3 - - - 0.00% 0.00% - 2013 3 - - - 0.00% 0.00% - 2014 3 - - - 0.00% 0.00% - 2015 3 - - - 0.00% 0.00% - 2016 3 - - - 0.00% 0.00% - 2017 3 - - - 0.00% 0.00% - Notes: General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 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. 246 CITY OF RANCHO CUCAMONGA Direct and Overlapping Debt June 30, 2017 City Net Taxable Assessed Value Overlapping Tax and Assessment Debt: Metropolitan Water District Chaffey Community College District Chaffey Joint Union High School District Alta Loma School District Central School District Cucamonga School District Community Facilities District No. 97-1 Etiwanda School District Etiwanda School District CFD Nos. 1, 2 & 3 Etiwanda School District CFD No. 7 Etiwanda School District CFD No. 8 Etiwanda School District CFD No. 9 Etiwanda School District CFD Nos. 2004-2 & 2007-1 Etiwanda School District Rancho Etiwanda Public Facilities Authority CFD No. 1 Fontana Unified School District Upland Unified School District City of Rancho Cucamonga CFDs City of Rancho Cucamonga 1915 Act Bonds Total overlapping tax and assessment debt Direct and Overlapping General Fund Debt San Bernardino County General Fund Obligations San Bernardino County Pension Obligations Bonds San Bernardino County Flood Control Dist General Fund Oblig Chaffey Community College District General Fund Obligations Cucamonga School District Certificates of Participation Fontana Unified School District Certificates of Participation City of Rancho Cucamonga General Fund Obligations West Valley Vector Control District Certificates of Participation Total gross direct and overlapping general fund debt Overlapping Tax Increment Debt (Successor Agency) Total overlapping debt City direct debt Total direct and overlapping debt Percentage Applicable' 0.911% 23.879% 44.623% 98.710% 97.930% 100.000% 67.398% 100.000% 21.530% 68.006% 70.844% 100.000% 100.000% 0.428% 0.123% 100.000% 100.000% 12.031% 12.031% 12.031% 23.879% 40.700% 0.428% 100.000% 33.087% 100.000% $ 23,741,582,000 2 City Total Share of Debt 6/30/17 Debt 74,905,000 682,385 144,865,000 34,592,313 398, 097, 765 177, 643,166 30,358,906 29,967,276 36,305,633 35,554,106 4,780,000 4,780,000 45,995,326 30,999,930 1,685,000 1,685,000 11,885,000 2,558,841 6,290,000 4,277,577 7,850,000 5,561,254 16, 515, 000 16, 515, 000 16,430,000 16,430,000 198,269,059 848,592 97,098,399 119,431 72,049,000 72,049,000 1,170,000 1,170,000 1,164,549,088 435,433,871 399,400,000 48,051,814 379,612,328 45,671,159 73,680,000 8,864,441 10,725,666 2,561,182 7,060,000 2,873,420 34,200,000 146,376 2,950,000 976,067 907,627,994 299,155,000 $ 2,371,332,082 109,144,459 299,155,000 843,733,331 486,229 $ 844,219,560 Notes: The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable Includes aircraft values. For 2017, the net taxable value per HdL Coren & Cone (HdL) was utilized in lieu of the Agency Net Valuation provided by the County of San Bernardino Auditor -Controller. The City believes that the data from HdL provides a more accurate 2 picture for the financial statement reader. 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 Source: California Municipal Statistics, The HdL Companies 247 u 61i M W Iq LO N 1` N 7 ER M ' r co O O LO O O Cl) 61) co 00 V 0) co N N 00 O) M u> 0) N I-- V rn M fA N C C M r - co f` LO LO 1- 1-1'4 O CO O K3 M N LOW W 61s N CliO M W 61) LO N O O Q1 V V EA M co Lq LO I` N N V EA M n W O O O O) M EA co co V m O N N m Cl) EA co (3) V rn Cl) 6-3 O) Cl) Cl) r- 613 M LO EA co Cl) 7 W 6f M O W N CfiO M O W 6f .0 m CL c m ° m W E 0 c a a (o m ❑ H J o O IA IA O O O O N M N M N O O O) IA M M O N O- V 0 W 0 f� W M 7, m O 6 N V3 V3 0 (D o ° m ° w O O -asa) -c E 0 O O 0 O O 0 0 O O N O O N O- 7, m O 6 C 3 a) (D o ° m ° w -asa) -c E N T O O m d N � o r o w c c O ° N E ° a) a) 6 m o E N 06 0 O = L aw o LO O C n o) N m p N wa) fn > E O o) VN N "00 T O v,C °= E O p 0 N w o 0)_c m a O O :F; O , '3L aE o to N7 _ > O 0 N O L L 6 O 0 Q > m E w cL w o) U 0 O 0 00 3 m O O O O > y6 m o) a, Y .L ° m C m m 0O O EO o 0 E m CL N O L j 7 CL� _ Win° E 1°cmO N O O o `p D w r O m CL c c . 0 N 0 0 0) m 3 U C N U V y rn N 0 C 0 7 N c0 (D) 0 E > m 0 CC' 0 4 _ °-0 �o m E 0 0 m E c g m w n 11 °-0a) ao 6 > 0_C 0 p m _ m E O 0 w c U O O p (_j aa)i p 76 m °, Q � a °1 `m c r> v co c m m a "�� E ° m 3 v N m O d 0 -o E X E CL `� m a) U U a, o rn 0 ° N ❑ m H _ m c m E UL.. d) L C w C w f6 rn (o a) N a) ('0) aOj p H N 0 V, O H m J Z ❑❑ J Z 248 T C o) y O m m m m U c c 0 '� N N E O l6 N U = @ n d Cc, m ! L w '00 -Co O n 0 1 Cl y N C 0 � N U 1 C Q C N N O (Oj Z U p U}L0 0 C rn O E a2 U = 1 0 0. O N n 1 y J 0> C E O ca N @ A . N a N C 2 U n d 1 m a .� L U c = L a) 0 i "0 O coo n UU J N 0 E 2 @ F O o p 0 0 0 N O N 7 N 1 -0> O m ° U N Y @ p O x U o a) C,° a, o a > 0 L m = O E a N 1 E O CC "0 1 N E 7 LL Co N O U W 0 U 2 U c a m U U O U) CITY OF RANCHO CUCAMONGA Pledged -Revenue Coverage Last Ten Fiscal Years (In Thousands) Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Tax increment figures are net of related pass-through payments. 2 As a result of the dissolution of the Redevelopment Agency on January 2012 indebtedness was transferred to the Successor Agency. 249 Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment' Principal Interest Coverage 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 2017 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 2012 indebtedness was transferred to the Successor Agency. 249 CITY OF RANCHO CUCAMONGA Demographic and Economic Statistics Last Ten Calendar Years Calendar Population Year (1) 2007 173,916 2008 175,627 2009 177,051 2010 178,904 2011 169,498 2012 171,058 2013 172,299 2014 174,064 2015 175,251 2016 177,324 Per Personal Capita Income' Personal Unemployment (in thousands) Income' Rate (2) (2) (3) 5,076,801 29,191 3.6% 5,167,755 29,425 5.1% 5,080,143 28,693 8.6% 5,377,675 30,059 9.4% 5,190,707 30,624 8.7% 5,341,115 31,224 6.2% 5,335,755 30,968 5.4% 5,402,772 31,039 6.0% 5,365,133 30,613 4.8% 5,317,032 29,984 4.2% 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 250 CITY OF RANCHO CUCAMONGA Principal Employers Current Year and Nine Years Ago* 2017 Percent of Total Number of Employment Employees, 2.46% 2.31% 1.91% 1.36% 1.05% 0.99% 0.89% 0.67% 0.67% 0.62% n/a n/a n/a n/a 1,763 1,198 880 942 954 800 n/a 606 n/a 565 561 517 2008 Number of Employer Employees, Rank Inland Empire Health Plan (IEHP) 2,200 1 Chaffey Community College 2,064 2 Etiwanda School District 1,706 3 Amphastar Pharmaceutical 1,217 4 Alta Loma School District 941 7 City of Rancho Cucamonga 882 5 Southern California Edison 800 6 Big Lots Distribution Center 600 8 Mercury Insurance Company 600 9 Central School District 554 10 West Coast Liquidators n/a n/a Frito-Lay, Inc. n/a n/a CMC Steel Fabricators n/a n/a Percent of Total Number of Employment Employees, 2.46% 2.31% 1.91% 1.36% 1.05% 0.99% 0.89% 0.67% 0.67% 0.62% n/a n/a n/a n/a 1,763 1,198 880 942 954 800 n/a 606 n/a 565 561 517 2008 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 251 Percent of Total Rank Employment n/a n/a 1 2.27% 2 1.54% 5 1.13% 4 1.21% 3 1.23% 6 1.03% n/a n/a 7 0.78% n/a n/a 8 0.73% 9 0.72% 10 0.67% 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 251 a V) Y f O z fu T } O aQ E W Q Q O U W f U > O fu < o � > �T N O E U) _ C U LL 11 c Q � .E � C O U f6 UE LL (3) J f O E E E LL U C O U c W ;i WN N CO � M (D 00 LO r r N co 0 � Mf` � f` w O r N LO O (� O r r N Cl) CD O M LN 0) 000 r r r N N N m w CO LO 00 00 r r N N N 0 O aD O M O I� oD r r N N (� N f� r r N M CN N� M V ' 0"t N f` r r M r N N 00 to O V O r ' M r O V 00 r r N N LO W O N 00 0 r N N M Cl) M 00 LO CC) 0 LO LO 00 N 00 00 0 H L T C C O U O C a M F- (3) CU m C CO T (U O Q N CU U L N U) W U O O a - z - 252 Z- 252 V) Y O U fU C (U Q Q O > U N > �T a U) o N °c' w Q � .E .E _O UE E > c E E f6 (1)c -f3 C7 m W U � U M Cl) M 00 LO CC) 0 LO LO 00 N 00 00 0 H L T C C O U O C a M F- (3) CU m C CO T (U O Q N CU U L N U) W U O O a - z - 252 Z- 252 a c� Z O G a i U o � O C U y C 0) LLL U - C: Z a cu O J LL O F- U co N f-- 00 CD O (0 � O 00 O N V O ti LO O V LO fl- LO N N (D T U 6) LO 00 �t O O O r-- M O CD It 00 O N LO LO M O N N r r N 00 - O co r r UU) 7 V (D N O E a) N O O O C4 N O U p O O N co O�T CA 00 Cl) r Cl) N (D O D_ LO (fl 6) O Cl) r N O (0 r 00 r CD 00 r O LO O O Cl) M r 00 f-- 00 Cl) 00 Op N N 4 00 r N r (fl LO N O O E D_ U U E N �' 7 C6 r 7 N in Co Cl) 00 N 7 3 Z N m 0 0 15 i� C 7 N 7 Z 0- U� d LL N -- d J C.0 N M It (D O CD (fl (D ti N O 00 LO ,It N CLO (D O O LO W M r M (D 00 r r Il- M M O CD I-- O r 00 N r- LO V O r0 N r V M r r N M C9O N r P - N N r co (A N N N N 00 r- M LO Cl) N LO I- M r- (. 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