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2018/06/30 Comprehensive Annual Financial Report
CITY OF : A NCHOOCAMONGA CALIFORNIA Ogg ALL RI TRAINING _ CE ER RANCHO HO C UCAMONGA v PE PROTECTION _ DIS T Rl( �R - .- ii - ----- JIM- _ .V --Wow lot / ■ I City of Rancho Cucamonga, California Comprehensive Annual Financial Report Year Ended June 30, 2018 Prepared by the City of Rancho Cucamonga Finance Department Tamara L. Layne Finance Director THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letterof Transmittal ..............................................................................................................................i CityOfficials...................................................................................................................................xxxiii OrganizationChart........................................................................................................................xxxvi Certificate of Achievement for Excellence in Financial Reporting .................................................xxxv FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT.............................................................................................. 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................ 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position .................................................................................................... 25 Statement of Activities.......................................................................................................... 26 Fund Financial Statements: Balance Sheet- Governmental Funds................................................................................. 28 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................... 33 Statement of Revenues, Expenditures and Changes in Fund Balances- Governmental Funds ......................................................................................... 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities.......................................................................................................... 36 Statement of Net Position - Proprietary Funds .................................................................... 37 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds.......................................................................................... 38 Statement of Cash Flows- Proprietary Funds..................................................................... 39 Statement of Fiduciary Net Position - Fiduciary Funds........................................................ 40 Statement of Changes in Fiduciary Net Position - Fiduciary Funds.................................... 41 Notes to Financial Statements.................................................................................................... 43 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS Page Number REQUIRED SUPPLEMENTARY INFORMATION Notes to Required Supplementary Information.......................................................................... 94 Budgetary Comparison Information: Budgetary Comparison Schedule - General Fund............................................................... 95 Budgetary Comparison Schedule - Lighting Districts .......................................................... 96 Budgetary Comparison Schedule - Housing Successor Agency......................................... 97 Budgetary Comparison Schedule - Fire District................................................................... 98 Pension Information: Schedule of Changes in Net Pension Liability and Related Ratios- Miscellaneous Plan -Agent Multiple-Employer Plan ......................................................... 100 Schedule of Plan Contributions - Miscellaneous Plan - Agent Multiple-Employer Plan............................................................................................ 101 Schedule of Proportionate Share of the Net Pension Liability- Cost Sharing Multiple-Employer Plans— Miscellaneous Rate Plan .................................. 102 Schedule of Plan Contributions - Cost Sharing Multiple-Employer Plans — Miscellaneous Rate Plan ............................................................................................... 103 Schedule of Changes in Net Pension Liability and Related Ratios— SafetyRate Plan................................................................................................................ 104 Schedule of Plan Contributions—Safety Rate Plan .......................................................... 105 Schedule of Changes in Net Pension Liability and Related Ratios— PARS Retirement Enhancement Plan ............................................................................... 106 Schedule of Plan Contributions - PARS Retirement Enhancement Plan .......................... 107 Other Postemployment Benefit Information: Schedule of Changes in Net OPEB Liability and Related Ratios ...................................... 108 Schedule of Contributions - OPEB..................................................................................... 109 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet- Nonmajor Governmental Funds.................................................. 118 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds................................................................ 136 Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds: GasTax.............................................................................................................................. 153 Recreation.......................................................................................................................... 154 ParkDevelopment.............................................................................................................. 155 Beautification...................................................................................................................... 156 Landscape Maintenance Districts...................................................................................... 157 Transportation.................................................................................................................... 158 PedestrianGrant................................................................................................................ 159 Community Development Block Grant............................................................................... 160 Assessment Administration................................................................................................ 161 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds (Continued): San Sevaine/Etiwanda Drainage ....................................................................................... 162 AirQuality Improvement..................................................................................................... 163 South Etiwanda Drainage.................................................................................................. 164 Lower Etiwanda Drainage.................................................................................................. 165 Masi Commerce Center..................................................................................................... 166 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 UndergroundUtilities.......................................................................................................... 180 Safe Routes to School Program ........................................................................................ 181 Citywide Infrastructure Improvement................................................................................. 182 Proposition1 B - SLPP ....................................................................................................... 183 CA State Library Staff Innovation Fund Grant................................................................... 184 Public Resource Grants..................................................................................................... 185 Proposition1B.................................................................................................................... 186 Integrated Waste Management.......................................................................................... 187 Proposition 42 -Traffic Congestion Mitigation................................................................... 188 Freedom Courtyard Resource Grant................................................................................. 189 Justice Assistance Grant Program..................................................................................... 190 Emergency Management Performance Grant................................................................... 191 Homeland Security Grant- Police...................................................................................... 192 Used Oil Recycling Program.............................................................................................. 193 LibraryImpact Fee............................................................................................................. 194 PoliceImpact Fee .............................................................................................................. 195 Animal Center Impact Fee ................................................................................................. 196 ParkLand Acquisition ........................................................................................................ 197 Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds: AssessmentDistrict 82-1 ................................................................................................... 198 Assessment District 84-1 ................................................................................................... 199 CFD2001-01...................................................................................................................... 200 Etiwanda Equestrian Facility.............................................................................................. 201 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds (Continued): CFD 2004-01 Rancho Etiwanda........................................................................................ 202 CFD 2006-01 Vintner's Grove............................................................................................ 203 CFD 2006-02 Amador on Route 66................................................................................... 204 Combining Statement of Net Position — Non-Major Proprietary Funds.................................... 206 Combining Statement of Revenues, Expenses and Changes in Fund Net Position — Non-Major Proprietary Funds.................................................................. 207 Combining Statement of Cash Flows— Non-Major Proprietary Funds.................................... 208 Combining Statement of Net Position - Internal Service Funds............................................... 210 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds.............................................................................. 211 Combining Statement of Cash Flows - Internal Service Funds................................................ 212 Combining Balance Sheet-All Agency Funds......................................................................... 216 Combining Statement of Changes in Assets and Liabilities - AIIAgency Funds...................................................................................................................... 222 STATISTICAL SECTION Financial Trends: Net Position by Component- Last Ten Fiscal Years......................................................... 230 Statement of Activities (Condensed) - Last Ten Fiscal Years ........................................... 231 Fund Balances of Governmental Funds - Last Ten Fiscal Years...................................... 233 Changes in Fund Balances of Governmental Funds - LastTen Fiscal Years ........................................................................................................234 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property................................... 235 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years................................ 236 Principal Property Taxpayers- Current Year and Nine Years Ago ................................... 237 Property Tax Levies and Collections - Last Ten Fiscal Years........................................... 238 Principal Sales Tax Remitters - Current Year and Nine Years Ago .................................. 240 Debt Capacity: Ratios of Outstanding Debt by Type - Last Ten Fiscal Years............................................ 241 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years.............................. 243 Direct and Overlapping Debt..............................................................................................244 Legal Debt Margin Information - Last Ten Fiscal Years .................................................... 245 Pledged-Revenue Coverage - Last Ten Fiscal Years ....................................................... 246 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS Page Number STATISTICAL SECTION (Continued) Demographic and Economic Information: Demographic and Economic Statistics- Last Ten Calendar Years................................... 247 Principal Employers- Current Year and Nine Years Ago.................................................. 248 Operating Information: Full-Time and Part-Time City Employees by Function - Last Eight Fiscal Years..............249 Operating Indicators by Function - Last Eight Fiscal Years............................................... 250 Capital Asset Statistics by Function - Last Eight Fiscal Years........................................... 251 THIS PAGE INTENTIONALLY LEFT BLANK City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2018 Introductory Section THIS PAGE INTENTIONALLY LEFT BLANK Mayor L.Dennis Michael I Mayor Pro Tern Lynne B.Kennedy Council Members William J.Alexander,Sam Spagnolo,Diane Williams City ManagerJohn R.Gillison CITY OF E;ii RANCHO CUCAMONGA 10500 Civic Center Drive I P.O.Box 807 1 Rancho Cucamonga,CA 91729-0807 1909.477.2700 1 www.CityofRC.us December 19, 2018 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, 2018. 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 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 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 30,2018,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 30,2018, 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. i GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of an 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 176,671 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 it operates under the Council-Manager form of city government. Prior to the November 2016 General Election, all City officials were elected at large including a Mayor and four City Council members, a City Clerk, and a City Treasurer. On November 8, 2016,the residents of the City voted to approve Measure Q which was then carried, adopted, and ratified by the City Council on December 7, 2016. Measure Q approved the City Council be elected by geographic districts with the Mayor elected at large. Four districts were created based on a map approved in May 2016 (see insert). Districts 2 and 3 held elections in November 2018. Districts 1 and 4 will hold elections in 2020. 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 A 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 financial statements. ii 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 and sanitation (i.e., sewage) are furnished by 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. Police protection services are provided through an on-going contract with the County of San Bernardino Sheriff's Department. 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 January 11, 2012, the City elected to become the Successor Agency for the former redevelopment agency in accordance with Assembly Bill 1X 26. 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 Fiscal Year 2016/17 was the first year that sales tax and property taxes exceeded the pre-recession peak. That is a full nine years to recover during an historic growth cycle of about 10 years. During Fiscal Year 2017/18,the City experienced continued growth of sales and property taxes; however, we remain very mindful of the long growth cycle which, as economic patterns have continuously shown,precedes a downturn. Unemployment in the City of Rancho Cucamonga is currently at 3.10% as of March 2018. This is less than the 4.00%at that same time during Fiscal Year 2016/17. The City's unemployment figures are consistently better than the County of San Bernardino which reported 3.90%and 5.20%in 2018 and 2017,respectively. The City itself has become a net job producer with the estimated growth in employment over the next five years of anywhere between 20% and 30%. 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. Rancho Cucamonga is not unique in this regard as California in the aggregate is doing very well and currently holds the largest share of the U.S. economy at 16.3%. The jobs being generated by businesses in Rancho Cucamonga and throughout California are also paying well. In California as a whole,household incomes have grown in the $100-150K range and the$150-200K range, and they are significantly higher than in the rest of the United States. Median household incomes in Rancho Cucamonga are right at the high$80K/low$90K level. Although the gains are modest,real disposable personal income is generally ticking upward by about.5%to 2%per year. iii The City Rancho Cucamonga is often identified by much of our regional neighbors as "suburbia". While a population pushing 200,000 people is a large community,we are located on the outskirts of the City of Los Angeles (along with 100 other cities throughout this area)which is a major metropolitan area. The City developed primarily from the late 1970's through the early 2000's during the quintessential heyday of suburban development.As a result, approximately 55%of the City's population live in about one-third of our total City's geography. As we close out the old fiscal year and begin the new, the City is continuing to grow and change, with new projects routinely happening, such as: • A mixed-use project by DR Horton featuring 300+ residential units, several sit-down fine dining restaurants, and a boutique hotel at the southwest corner of Base Line Road and Day Creek Boulevard. • A 182 unit for-rent project known as the Vintner is currently under construction at the northeast corner of Hermosa Avenue and Foothill Boulevard. This 5-story mixed use project will include commercial sites on Foothill,hidden parking, luxury living, and rooftop patios and recreation areas. • Merrill Gardens, located on Highland Avenue, east of Archibald Avenue, opened in October 2018 with 112 residential units for seniors. • The Rows and Bungalows, a higher density for sale residential project consisting of 214 units, is under construction at Church and Haven. Van Daele is the developer of this project which will have convenient pedestrian accessibility to all of Terra Vista Towne Center. Budgetary Control The City adopts an annual budget where each department's budgeted appropriations are controlled at the character of expense level. These levels are defined as personnel services; operations and maintenance; capital outlay; debt service; cost allocation; and transfer out. Although the budget is monitored at the character of expense level, the legal level of budgetary control, that is the level at which expenditures cannot exceed appropriations, is the department level within the General Fund and at the function level for the Special Revenue, Debt Service, and Capital Projects Funds. Budgetary control is further maintained by the use of an encumbrance system. Revenues are also estimated annually in the adoption of the annual budget. Revenues and expenditures are monitored throughout the year with quarterly updates provided to the City Council. Long-term Financial Planning Annually, the City updates a five-year Capital Improvement Program (CIP). Planned capital expenditures from special, non-operational funds for Fiscal Year 2018/19 total $44,907,830. The CIP includes: the relocation of the San Bernardino Road Fire Station(Station#172); expansion of the Public Works Services Department warehouse; construction of Phase I of the Fiber Optic Master Plan to expand the existing fiber optic infrastructure in the City; Etiwanda Avenue grade separation project which utilizes funding from SB 1;and installation of pedestrian overhead beacon and related equipment on Base Line Road at Lion Street. 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 30,2018,the City of Rancho Cucamonga does not have any bonded indebtedness. iv II. HIGHLIGHTS OF FISCAL YEAR 2017/18 Economic and Community Development The Economic and Community Development Group has become the lead for pursuing economic development programs and opportunities. The mission of the Economic and Community Development Group is to foster a strong local economy and create economic opportunities for investors,entrepreneurs,and facilitate job growth. Economic Development staff, along with partners across the City, offer services and support to accomplish these goals and build a supportive economic ecosystem. During the past fiscal year, the City partnered with several agencies to help support and grow small businesses. For example,the City's partnership with the Inland Empire Small Business Development Center (SBDC) provided one-on-one business consultation meetings to 144 business owners and entrepreneurs. As a result, 12 new jobs were created from these efforts. The City also hosted business workshops throughout the year lead by consultants from the SBCD. A total of 17 workshops were held on various business- related topics and 283 people attended the workshops. The City in collaboration with the County of San Bernardino and several west end cities host the annual West End Job Fair at the Old Ontario Airport. A total of 86 companies participated in the event,offering full-time and part-time employment. The City continues to work closely with the Greater Ontario Tourism Marketing District(GOTMD). The role of the GOTMD is to increase tourism and event destination while increasing overnight stays. As a result,Rancho Cucamonga hotels have experienced an increase in average daily rates and occupancy rates during Fiscal Year 2017/18. This, in turn, has increased interest from hotel developers in the Rancho Cucamonga area. Currently, there is one hotel under construction that will be opening in early 2019 and two that have received full entitlements, including the City's first boutique luxury hotel at Base Line Road and Day Creek Boulevard,one block from Victoria Gardens. These hotels will add to the already nine business class hotels that exist in the City with occupancy rates in the mid to high 80%range. 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 a bi-monthly cable show. The City continues to work with San Bernardino County Transportation 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. Affordable Housing Affordable rental housing for families and seniors who want to live and work in Rancho Cucamonga continues to be a challenge. The elimination of redevelopment significantly diminished ongoing housing resources. Despite the lack of these resources, some limited 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. Nevertheless,these proceeds have allowed the City to finance two final projects in the community. The first project is a second phase to Villa Pacifica. Villa Pacifica II include 40-units of senior affordable housing. This project is currently under construction, and the anticipated completion date is in the first quarter of 2019. The second project is Day Creek Villas, a 140-unit senior affordable housing project. This project was approved for development in early 2017 and was recently awarded State tax-credits to complete financing of the project. Construction is anticipated to begin in the third quarter of 2019 with an anticipated completion date at the end of 2020. v Additional Housing Program 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 led by the Engineering Services Director/City Engineer and consists of four 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 14 Capital Improvement Projects amounting to just under $10 million were completed during Fiscal Year 2017/18. The list below summarizes the capital projects that were completed during Fiscal Year 2017/18: • Carnelian Street from Highland Avenue to Lemon Avenue Pavement Rehabilitation. • Hillside Road from Archibald Avenue to Haven Avenue Pavement Rehabilitation. • San Bernardino Road from Carnelian Street to Archibald Avenue Pavement Rehabilitation. • Hellman Avenue from San Bernardino Road to Base Line Road Pavement Rehabilitation. • Church Street from Pepper Street to Hellman Avenue Pavement Rehabilitation. • 9th Street from Grove Avenue to Hellman Avenue Pavement Rehabilitation. • Base Line Road from Milliken Avenue to Day Creek Boulevard Pavement Rehabilitation. • Rochester Avenue from Foothill Boulevard to Base Line Road Pavement Rehabilitation. • Two Traffic Signal Installations at Carnelian Street/Banyan Street and 6th Street/Utica Avenue. • Three Flashing Yellow Left-Turn Arrow Traffic Signal Modifications along Milliken Avenue. • Traffic Signal Modifications at Various Locations. • Sidewalk Improvements for Bus Stops at 9 Locations. • Solar Photovoltaic Installation(Phase 1) at Central Park and the Rancho Cucamonga Epicenter. • Pacific Electric Trail at Victoria Park Lane Tunnel Crossing Protective Fencing. vi Transportation Development Section The Transportation Development section of Engineering Services is staffed by a team of engineers and customer- oriented representatives. The group provides important information and superior customer service to residents, business owners, developers,utility companies, other departments within the City,and the various school districts. This group is responsible for the review and conditioning of proposed development and utility work in the public right-of-way, as well as the technical plan check and permit issuance of these types of projects. During this fiscal year, Transportation Development took on the responsibility of reviewing Water Quality Management Plans (WQMPs), Grading Plan checks, and onsite Water and Sewer reviews from Building and Safety. The group is involved in the construction and operation of traffic control devices and plans for future traffic and transportation needs. The team works closely with Public Works to ensure these traffic control devices are installed correctly per City, State, and Federal standards. The team issues right-of-way permits through the Accela system, handles research requests, and explains Department polices. During Fiscal Year 2017/18, a combined total of 2,028 permits were issued through this section for Right-of-way,Lane Closures, and Oversize Load permits. Utilizing funding from the Mobile Source Air Pollution Reduction Review Committee (MSRC), the City implemented green bike lanes to help promote biking as a transportation method and enhance safety for bicyclists and motorists. Green bike lanes provide reinforcement that bicyclists have priority and will be implemented in areas of interaction between vehicles and bicycles, such as approaching intersections, commercial driveways, and right turn pockets. This bike facility treatment allows bicyclists to feel safer when approaching an intersection where weaving typically occurs. According to the Federal Highway Administration,research of green bike facilities has denoted positive effects for bicyclists in positioning themselves correctly when traveling through conflict areas and for drivers having an increased awareness of bicyclists. Other project highlights include the joint venture between the Capital Management and Transportation Development sections to continue installing the flashing yellow arrow signals throughout the City. Both groups worked closely together as Lewis Development installed a new flashing yellow traffic signal at Base Line Road and Day Creek Marketplace. The Transportation Development group assisted numerous developers and property owners with the entitlement of their projects and is currently plan reviewing the submittal of these key development projects. Environmental Programs Section The Environmental Programs Section is responsible for administering the City's environmental programs which aim to encourage the preservation of natural resources and prevent storm water pollution, thereby ensuring compliance with state and federal mandates such as AB 939 and the National Pollutant Discharge Elimination System (NPDES). Highlights for this year include: providing service to 7,744 participants and processing 456,896 pounds of waste at the Household Hazardous Waste Collection Facility, conducting 757 storm water inspections,and participating in 31 community events. This year the section applied tax assessments and title liens on 458 properties to recover approximately$189,577 in delinquent trash account payments. vii Municipal Utility Section The Rancho Cucamonga Municipal Utility(the Utility)operates as a small electric utility providing electric service to both commercial and residential developments including the Victoria Gardens Regional Shopping Center as well as surrounding retail and commercial developments that were built within the Utility's service territory. The Utility has 1,000 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. The Utility also manages the operations and maintenance of over 15,000 citywide streetlights.Additionally,the Utility completed the City's 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 City has established a public private partnership with a Rancho Cucamonga based broadband retail provider, Inyo Networks, in order to begin providing high speed broadband as an economic development tool for City residents and businesses. 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 2017/18: Administration Division In addition to overseeing the operations of the Department's 160+ full-time and part-time employees and over $35 million in combined operations and capital budgets,the Public Works Administration Division managed several significant projects this year. Key items this year included: 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 Hearing Conservation Plan to ensure compliance with the Cal/OSHA Regulations. The Safety Coordinator also completed the required training and received professional certification as a Certified Ergonomics Assessment Specialist Level II (CEAS II). This certification enables our staff member to perform ergonomics analyses on multiple task jobs in office and industrial environments, using the OSHA ergonomics assessment tools,with the focus on identifying risk factors and determining solutions and opportunities for improvement. viii Facilities Maintenance Division The Facilities Maintenance Division is responsible for the operation and maintenance of 14 city-owned buildings. 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,which began in Fiscal Year 2016/17 and was completed in Fiscal Year 2017/18, 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 design phase started in Fiscal Year 2015/16 and construction was completed in Fiscal Year 2017/18. 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 drainage systems. The main lobby had new tile flooring installed,modifications to the customer service counter, and updating of the lobby's appearance. • Animal Care and Adoption Center Fencing—In order to eliminate the open-access driveway to the rear of the facility and provide the much-needed security, tubular fencing was installed to enclose the parking area north of the Center.The enclosed area will also allow for the secure storage of the departmental vehicles and supplies. • LoanMart Field Audio Repairs—The stadium site was originally constructed in 1991, and the audio system needed to be replaced. The design phase started in Fiscal Year 2016/17,the construction started in Fiscal Year 2017/18, and it is estimated to be completed in Fiscal Year 2018/19. In general, the projected lifespan of outdoor equipment is 5-10 years,while inside electronics may last up to 15 years. • Locker Room Carpet Replacement at the Quakes Stadium—The carpet in the locker rooms was replaced due to wear and tear. The existing carpet and cove base in the home team, visiting team, and umpire locker rooms was removed and replaced with a durable, long-lasting, and attractive floor covering. • Public Works Services Center Warehouse Expansion (design) — The design for the Warehouse Expansion started in Fiscal Year 2017/18 and will continue during Fiscal Year 2018/19. Additional funding was allocated to complete the design for the Public Works Services Warehouse Expansion. • 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 and work was completed in Fiscal Year 2017/18. • Facilities Work Order Management System A new work order management system was implemented to help manage work orders and gather the City's infrastructure data. Full deployment of this system will continue into Fiscal Year 2018/19. • Celebration Hall Airwall Replacement — The airwall system that is used to subdivide Celebration Hall into smaller meeting areas had failed on several occasions and replacement parts were no longer available and needed to be replaced. The design was completed in Fiscal Year 2017/18 with construction to occur in Fiscal Year 2018/19. ix • Civic Center Parking Deck Repair—The parking deck at the Civic Center was last repaired in 2010. During regular maintenance, staff found cracks in some parking deck surface area. A contractor was brought in to replace and repair joints and apply sealant to the Civic Center parking deck to prevent leaks and water damage to the underground parking lot. • Old Town Lighting Project—The existing sports lights that provide lighting for the baseball/softball fields at the Old Town Park are failing.This project will replace existing sports lights with light fixtures that were reused from the Epicenter Soccer fields. The design started in Fiscal Year 2017/18 with construction to be completed in Fiscal Year 2018/19. • Civic Center Carpet Replacement and Upper Lever Reconfiguration (Design) — The existing carpet in the rotunda area was installed in 1990 and has reached the end of its useful life. The design started in Fiscal Year 2017/18 and will be completed in Fiscal Year 2018/19. • In addition to the numerous capital projects, there were also several large service contracts awarded/renewed including: electrical services,janitorial services, and door installation and repair services. Streets,Fleet, and Storm Drain Maintenance Division The Street Maintenance personnel handle a variety of 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. • Vehicle Purchases — The City Council authorized the purchase of the following replacement vehicles: one graffiti removal truck, one CNG dump truck, one traffic sign truck, one CNG ten-wheel dump truck, and one new thermoplastic truck. • Thermoplastic Program— The program was fully implemented in Fiscal Year 2017/18 and the streets crew removed 1,700 linear feet of old thermoplastic/paint and applied various stop legends, limit lines, stop ahead markings,miles/hour signs and crosswalk in 214 locations. • Traffic Signal Controller Cabinet Purchases — Two new traffic signal controller cabinets were purchased during Fiscal Year 2017/18. 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 additional traffic signal poles to be maintained,significant increase in signal pole knock downs, major wire pulls, traffic signal controller repairs, major electrical damage, replacement meter service pedestal strong box, etc. • 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 2017/18,a total of 3,878 catch basins were inspected,77 catch basins required cleaning and 34 lines were jetted. x • 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 2017/18, staff scheduled sidewalk and ADA ramp repairs in the Victoria Windrows community and other concrete repairs in various parks,paseos, and community trails located in Landscape Maintenance Districts(LMDs) 1,2,and 4R. • Many smaller projects were completed during Fiscal Year 2017/18 including: k-rail installation,asphalt repairs, concrete repairs, graffiti removal, street sweeping, 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. • Several service contract specifications were prepared and went out to bid during Fiscal Year 2017/18 such as: the traffic signal communication service and fuel island maintenance service. Parks and Landscape Maintenance Division This diverse group maintains over 400 landscaped sites, as well as the City parks, Adult Sports Complex and Epicenter, landscaped facilities, parkways, paseos and median islands, park facilities, City-wide trails, and City-owned trees. The Parks group is staffed 7 days a week and has several specialized positions,such as Certified Pest Control Advisors/Applicators, ISA Certified Arborists, Certified Water Auditors, and a Certified Playground Safety Inspector. • 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. 70% of the trees in the City were identified and logged in Fiscal Year 2017/18 and the project is expected to be completed in Fiscal Year 2018/19. • Civic Center Landscape Renovation— The scope of work included the removal of the existing landscaping and irrigation system and was replaced with new drought tolerant plant materials, cobble paving, decomposed granite, landscape boulders, and a water efficient irrigation system. In Fiscal Year 2017/18 the project was completed. • Wood Recycling Program- 5,000 cubic yards of tree trunks and stumps that originated from the citywide tree removals and wind damage were turned into usable wood chips, which can be put directly back into the landscape to help enhance the appearance and provide weed suppression and water saving measures. • Red Hill Lake Water Quality Control - In a continuous effort to improve water quality at the Red Hill Park Lake, a floating vegetation (plant) island has been installed. This island will help with the treatment and clarification of the water while providing some wildlife habitat. • Paseo Lighting Retrofits - Over the last few years, staff has focused on the reduction of utility costs. During Fiscal Year 2017/18, staff removed and replaced the existing paseos lighting fixtures with energy efficient inductive fixtures in LMD 2 areas,Victoria Windrows 2A and 2B. 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. xi • Exercise Area Surface Replacement—Every year,Parks Facilities staff inspect parks that have an exercise area for hazards, damage, and worn out rubberizing surface materials. In Fiscal Year 2017/18 staff identified the rubberized surface around the exercise equipment in Garcia Park as needing replacement and it was subsequently replaced. Several smaller projects were also completed by the Parks Section during Fiscal Year 2017/18 such as:the rebidding of the park mowing and facility landscape maintenance contracts and LMD 1 park maintenance contract and the replacement of several pieces of equipment. 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 a Director of the 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 7,400 residents, developers, and business owners at the counter in Fiscal Year 2017/18. 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: • With our first four(4)story mixed use development,consisting of residential multi-family units and commercial space under construction at Foothill and Hermosa, staff is continuing to review best practices to implement or adjust mixed use/TOD development standards into the Development Code. • During Fiscal Year 2017/18,the City coordinated the environmental review process for the Central Park Master Plan Update and is currently reviewing proposals from outside firms to produce an Environmental Impact Report to accompany the Draft Master Plan. • The 28.4-acre property at the corner of Day Creek Boulevard and Base Line Road is under construction 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. • The Planning Department is currently working on a project (referred to as "Empire Yards") together with the San Bernardino County Transportation Authority (SBCTA) and Creative Housing Associates to develop a higher density,mixed use and transit-oriented project at the current Metrolink station near Milliken Avenue. xii • 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 include revising standards for the development of accessory dwelling units on residential properties as required by state law and the development of small cell wireless installations within the public right of way in response to potential state level legislation that would have a negative impact on local control of the public right of way. In addition,the City Council approved two interim ordinances restricting new car wash development and requiring additional permits for hotel development,while staff researches and proposes new standards for both uses. The continued implementation of the Community Development Block Grant (CDBG) program is facilitated by Planning Department staff. The City received a 15% increase in funding from the previous year. 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. 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 enhance the use of the Accela permit software that helps to expand its use for on- line permit processing of fee payments and inspection requests and allows customers to access permit and inspection information 24 hours a day, 7 days a week. The Department conducted over 13,232 inspections,responded to over 250 complaints and investigations, and issued over 4,200 permits during the Fiscal Year 2017/18. Administration The Administration Section continues to improve communication with customers by enhancing public relations through website development, social media, and enhancing and updating forms and handouts. All telephone calls for Building and Safety Services as well as Community Improvement are received in this section. 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 11,014 applicants have registered 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. xiii Building and Safety also plays an integral part in meeting with other Community Development Departments and developers creating quality and beneficial development in the City. Community Improvement The goal of Community Improvement is to increase the stability and value of neighborhoods in the City through enforcement of the Municipal Code,including the building and housing codes which have been adopted by the City. Officers are tasked with determining a cause for a violation and identifying the best manner to gain compliance. This can include making a referral to public services and non-government organizations to assist those in the community that do not have the ability or funds to maintain property. For property owners unwilling to comply, enforcement efforts can include administrative actions and civil remedy. Notable accomplishments this year include: • Implementation of GoGovApps software which assists officers in case management and printing notices while in the field. This reduces the time in the notification process to residents that are given information on necessary corrections immediately,avoiding mail delays. • Continued education and training for staff members, with three of the five staff members completing all education requirements to receive the status of Certified Code Enforcement Officer for the State of California. Education events have been hosted in the city and additional support provided to the California Association of Code Enforcement Officers with in-kind hours work to develop training. • Cost recovery has continued to improve with better collection of administrative penalties, abatement costs levied on tax assessment, and title documents filed to prevent title transfer without payment of the fees due to the City. Community Services Senior Services The James L.Brulte Senior Center at Central Park offers a variety of classes,services,programs,and special events as well as spaces and opportunities for friends to gather for cultural connection or games and cards engaging our population socially and to engaging minds. Last year, staff introduced ongoing Brain Health and Dementia Workshops and non-biased Medicare informational workshops. We improved the Senior Resource Library's offerings to seniors looking for elder-specific goods and services and started expanding our volunteer program. Ongoing nutrition and transportation programs continue to provide valuable services to the community. Also last year, through the Department of Aging Adult Services, we were able to move a staff position from the County's employment training program to a Senior Programs and Services staff position to great benefit. The Senior Center is a vital resource in Rancho Cucamonga all year long with daily,weekly and monthly services and activities. This is all made possible with the support from hundreds of volunteers and numerous community partners. xiv Central Park Event Services Central Park offers nine meeting rooms, two large event halls, a cozy courtyard, and beautiful park grounds for picture opportunities. The ambiance alone sets the mood for a successful event, whether it be intimate or extravagant.Central Park is a very popular location for weddings,anniversary and birthday parties,and much more. The Central Park meeting rooms and halls are 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! Contract Classes In Fiscal Year 2017/18 the Contract Classes program continued to offer a variety of recreational classes to the members of our community. Classes such as:Music,Dance,Fitness,Cooking,S.T.E.A.M.,Music,Arts and Crafts, Gymnastics, Modeling, and so much more. Classes were offered at multiple City facilities and local businesses, with over 5,500 participants registering for classes. All classes focused on supporting a Healthy RC lifestyle. Special Needs Our Special Olympics local program grew by leaps and bounds during Fiscal Year 2017/18. Last year, we ended our soccer season with a team of 14 athletes. This year we grew to a total of 38 athletes. At the Fall Regional Games,we had three teams compete for medals and one athlete compete in Individual Skills. Two teams took home bronze medals, with the third team coming in 4th. Our individual athlete came in second in his age group, earning him a silver medal. We are hoping all 38 athletes will join us in the spring for Bocce ball. The IncredABLES program as a whole is growing rapidly. Word is getting out how unique our program is and what amazing things the City has to offer its citizens.Our Friday Night Fun Club events are now consistently getting 40-50 IncredABLES registering to participate,and we obtained a sponsorship through WLC Architects to continue to put on high-quality events for our IncredABLES and their families. The Special Needs Partnership Coalition also hosted its second annual Special Needs Resource Fair,with 30 vendors participating and safety themed break- out sessions that served approximately 250 community members who attended the event. Our IncredABLES have also started to get more involved within the community, volunteering at performances at the Lewis Family Playhouse and helping to host"Tip-A-Cop"events put on by local restaurants in partnerships with Special Olympics Southern California. In return for their volunteering services, the Lewis Family Playhouse has invited out IncredABLES and their families to attend select dress rehearsals of shows put on by Mainstreet Theater Company as a thank you for all their hard work. Registration The Registration Division is the main hub for Community Services' customer intake. Last fiscal year,the Division processed approximately 52,000 program/class registrations, approximately 1,282 park reservations, and handled approximately$3.7 million at multiple sites throughout the City of Rancho Cucamonga. In addition,we maintained payments made via InstantRC(over$880,000 in transactions)and authorized 177 scholarships equaling$28,978 to qualifying residents. As of Fiscal Year 2017/18, the Registration Division now has staff located at Central Park, City Hall,Lions East,and the new RC Sports Center. Registration also provides assistance to RC Library,RC Fire, and the Cultural Center. xv 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 Preppy 4's and 5's class. Overall there were a total of 527 registered participants this Playschool session. Lions Center West houses the RC TeenWorks program (Teen Center and Teen Volunteers). The Teen Center drop-in program is offered Monday—Friday 2:00 pm—6:00 pm during the school year, providing a safe place to the teen community. The last school year saw approximately 700 attendees at the teen center after school drop in program. Every Tuesday and Thursday RC TeenWorks staff offer the Explorers program where teens focus on STEM activities, sports, and art and crafts. During the last school year, an average of 12 teens attended each day. Teens built a hover craft, learned how to cook, and gained important life skills such as learning how to do laundry and manage money. In addition, staff 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 teens had the opportunity to volunteer at the Ronald McDonald house, beach clean ups, and Camp Cucamonga,just to name a few. This year's 75 volunteers logged a total of 3,620 hours! Lewis Kids Club is also supervised by Lions Center West staff,hosting an afterschool program in the club houses at Del Mar and Terra Vista apartments. Last year approximately 2,500 children participated in the Lewis After School program. Over the summer, Lions Center East and West hosted 1,301 youth ages 2 — 16 during the popular summer camp program. The Super Hero theme and Specialty Camps were a hit to those who attended. RC Family Resource Center The RC Family Resource Center served over 12,000 individuals with human services and community programs this past fiscal year. Services include emergency food and clothing, family crisis intervention, parenting classes, tutoring, ESL classes, support groups, housing referrals, legal-aid assistance, youth mental health trainings, tax preparation assistance,life skills,children programs,and much more.Additionally,during the Fiscal Year 2017/18, the RC Family Resource Center provided monthly and annual family events such as the monthly Family Fun Nights, the Annual Thanksgiving Basket, and the family-friendly Halloween Spooktacular event which had over 2,500 individuals in attendance. These events are geared towards engaging the community and building a strong and vibrant community in the South-west Cucamonga area. Over the last few months, the Rancho Cucamonga Family Resource Center has undergone a makeover and will continue to improve the facility's image and purpose to better meet the needs of the entire community. Facility rentals are now available to the community. xvi Special Events Last year, over 34,500 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 Day Community Parade, Veteran's Day Celebration, Memorial Day, Spooktacular, and Spring and Fall Movies in Town Square at Victoria Gardens. Park Ranger Prog am 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, with a vacancy and only one staff working for about half of the year, the Park Rangers made contact with patrons 1,270 times, which includes dispatch calls for a variety of low level infractions and educating Park users. Sports There is something for everyone when it comes to sports in the City of Rancho Cucamonga! The Sports Division offers sports for ages 3 and up. Youth and Adult Basketball as well as Pee Wee Basketball and Youth Volleyball all take place throughout the year in the RC Sports Center. Pee Wee sports programming also offers soccer,baseball and new for fall 2018: Pee Wee football. The Sports Division also offers clinics during spring and summer. Adult Softball is available through Major League Softball at the Epicenter Sports Complex. In April 2018, the City closed the doors of the old RC Family Sports Center for the last time with the anticipation of the new RC Sports Center opening in July 2018. Some programs were adjusted and offered at Cucamonga Middle School during the interim. The new facility is up and running and attendance continues to increase consistently. Cultural and Performing Arts The Lewis Family Playhouse kicked off the 12th season with a stunning performance by Vanessa Williams and throughout the Fiscal Year 2017/18 season hosted a myriad of well-received, renowned artists such as Michael McDonald, Billy Ray Cyrus, Bill Engvall, Los Lobos, Clint Black, Capital Steps and guitar virtuoso, Jesse Cook. Family friendly programming included The Underwater Bubble Show, Mamma Mia Singalong, Stunt Dog Experience, and Disney's Choo-Choo Soul. Best attended shows:It's Magic sold 98.6% followed by An evening with Clint Black at 98.5%and then a triple tie for third 97.9%Reunion of the Doo Wop Stars, The Official Rat Pack Show, and Los Lobos. Since changing over to the new ticketing system, we've seen a significant jump in Web-sales (tickets sold on the internet). For presented and produced public performances in Fiscal Year 2016/17, it was 26.8% and for the Fiscal Year 2017/18 season, it tallied 34.2%. xvii The City's own professional, nationally-recognized, MainStreet Theatre Company presented a strong three play season beginning in October with Roald Dahl's The Witches,continuing in February for Black History Month with Peter Manos' Oh Freedom: The Story of the Underground Railroad, and concluded with Frederick by Suzanne Maynard Miller. Close to 34,000 people of all ages attended MainStreet performances, including 26,634 students and teachers that attended the 54 school performances offered. Of the people who filled out post show surveys, 3 1% had never seen a MainStreet show before this season, and 37% of children were seeing theatre for the first time at one of our performances. Survey results as well as our own observations at the performances showed that people were very satisfied with not only the choice of plays and the artistry of the performers, but of their entire experience, including the pre- and post-show lobby activities, and the opportunities to engage with the actors at post-show talk backs, as well as meeting them after the show for autographs. Broadway at the Gardens presented Lin-Manuel Miranda's wildly popular In The Heights which garnered strong public acclaim and had six sold out shows, warranting the addition of an invited preview as well as another Saturday matinee setting a new attendance record of 4,313 people. Community Theatre presented the beloved Miracle on 34th Street for the holidays and the July 2017 summer family musical was Joseph and the Amazing Technicolor Dreamcoat. Event Services hosted over 120 external rentals in Fiscal Year 2017/18 grossing over$351,000. One of our rental highlights would be the contracts with San Bernardino County Superintendent of Schools (SBCSS) which hosted its grant funded PBIS Training at the Cultural Center. This opportunity yielded a total of 16 bookings from SBCSS grossing almost $30,000. Event Services continues to work with Inland Pacific Ballet (IPB) and Valverde School of Performing Arts (VSPA) on their multiple rentals throughout the year as well. A total of over $96,000 was brought in just for IPB and VSPA. Additionally, the Cultural Center hosted many popular public events including the annual State of the City Address, a Bridal Expo, "For the Love of Wine" Gala, The Inland Empire Arts Association Show and a multitude of private events from weddings to quinceafteras to retirement banquets. The Cultural Center remains a vibrant and active community gathering place for residents and visitors of Rancho Cucamonga. Police Department The City of Rancho Cucamonga contracts with the San Bernardino County Sheriff's Department for general law enforcement services. During Fiscal Year 2017/18,the Police Department had 141 sworn officers,41 professional (general) employees, and more than 90 volunteers which included Reserves, Citizen Patrol,Equestrian Patrol, and Explorers. In addition to basic patrol services, the Rancho Cucamonga Police Department also provides the following: School Resource Officers (6), Bicycle Enforcement Team, Multiple Enforcement Team (MET), Solution Oriented Policing Team (S.O.P.), Traffic Division, Detective Bureau, Retail Theft Team (Victoria Gardens), Child and Adult Protective Services (CPS/APS) Follow Up Team, Crime Prevention Team, and Public Information Officer Team. xviii 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(PSVN) and Automated License Plate Reader(ALPR)technology deployment throughout the city is an ongoing effort for current and future improved law enforcement services. The Solution Oriented Policing(S.O.P.)Unit will carry forward to improve quality of life issues with homelessness, bar compliance, Active Shooter Training, and school/business threat assessments. While engaging in their duties, S.O.P. deputies work with Community 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. School Resource Officers (SROs) Although the Police Department and the Fire District worked collaboratively to create an Active Shooter Training Team to help schools and the community prepare for such an event, there can always be more precautionary steps to improve safety. In this climate of tragic incidents at schools around the nation, the City partnered with the Chaffey Joint Union High School District subsequent to the adoption of the FY 2018/19 Budget to include the deployment of two additional deputies to the 35 various schools throughout the City. This will allow a uniformed presence at each of the four high schools while distributing other deputies to assist with concerns at the lower level within the middle and elementary schools. Automated License Plate Readers(ALPRs) ALPRs use 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 seventeen (17) 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. This information is regularly used as an investigative tool after the fact. Should a victim or witness describe a type and color of a vehicle related to a crime,detectives can research through the data to attempt to identify the exact vehicle and suspects associated with it. The City's committed 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 Safety Video Network(PSVN) In conjunction with ALPRs,the Public Safety Video Network continues to expand with video cameras installed at eighty-five (85) 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. A recent addition is that of the local schools. As the school districts implement their own camera systems, they are joining the City's network to allow the Police Department the ability to view events in real time. The Police Department's Technical Management Team and the City's Department of Innovation and Technology(DoIT)personnel are continually working on a plan for future ALPR/PSVN installation projects. xix Expansion of Solution Oriented Policing Team The Solution Oriented Policing(S.O.P.)Team's key tasks involve investigating sex trade crimes,conducting Active Shooter Trainings, 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. An additional deputy was added to assist with getting resources to the homeless located within the city limits. 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. Fire District The Rancho Cucamonga Fire Protection District is responsible for Community Risk Reduction, Emergency Response, and Emergency Management/Disaster Resiliency. District personnel are dedicated to the preservation of life,property,and the environment. 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 the citizens. The District's emergency response platform consists of seven paramedic-staffed engine companies and two ladder companies operating out of seven fire stations. 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 and initiate actions that will stop the 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 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. xx During Fiscal Year 2017/18, District staff accomplished the following to maintain and improve existing services levels in accordance with Council approved goals: • The Fire District All-Risk Training Center construction project was completed. • Completed substantial design of the new Public Safety Facility to include relocation of the San Bernardino Road Fire Station(172) and a fully functioning Rancho Cucamonga Police Department Sub-Station. • Took delivery of and placed into service a new,replacement fire engine. • District-wide Station Alerting System upgrade project was completed. • Completed the second half of the replacement of the City-wide Automated External Defibrillators(AEDs)that were at 10-year end-of-life. • Replaced the first half of the District-wide Mobile Data Computers(MDCs). • Completed the third, and final,year of the VHF radio replacements for communications. • 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 2017/18. In the prior fiscal year, the Library checked out almost 900,000 books, DVDs, CDs, eBooks, and magazines, and issued over 11,000 new library cards. Over 73,000 people used a Library computer, and over 38,000 children attended a library program. Currently, over 200,000 borrowers hold a Rancho Cucamonga Public Library card and enjoy a collection of over 300,000 titles and free access to more than 70 public computers. Additional Library highlights include: Children's and Teen Services • Nearly 40,000 of our young residents came to our libraries to enjoy the popular storytime programs. With over twenty storytimes each week, our baby, toddler, pre-school, school-aged, and teen programs offer something for children of every age. • The Summer Reading Program(SRP)had another highly successful year,with nearly 4,200 children and teens taking part in the program.The SRP is crucial to helping student maintain their reading skills during the summer months. • The bookmobile provides service to many of the city's elementary schools.The distinctly-designed bookmobile visits children at their school sites. The bookmobile checked out over 61,000 items to children during this past fiscal year. After 15 years of service to Rancho Cucamonga schools and childcare centers, a refurbishment of the bookmobile is planned for the next fiscal year. • Children's Services partnered with a variety of businesses and organizations to provide incentives for children completing the annual Summer Reading Program with a total estimated value at nearly $53,000. Donors supplying prizes included: Rubio's, Chipotle, the Los Angeles Clippers, The Old Spaghetti Factory, Benihana and Aquarium of the Pacific. xxi Senior Services The Library's "HouseCalls" outreach program delivers library materials via volunteers and staff to community members who are unable to come to the library. This service allowed homebound Rancho Cucamonga residents to checkout over 1,000 items this fiscal year. Rancho Cucamonga Library volunteers and staff deliver materials ranging from books to DVDs to audiobooks. Outreach Services The Library had many outreach visits in Fiscal Year 2017/18, including the Disabilities Resource and Safety Fair, RC Fire Open House,National Night Out, and RC Family Resource Center's Spooktacular event. These outreach efforts are in addition to our daily bookmobile stops. Information and Virtual Library Services • Between the Adult and Children's Information Service desks and our Virtual Library,over 155,000 information questions were answered during the past fiscal year. • Over 73,000 library customers used the Library's free,public access computers to search for jobs, send email, create resumes, create school reports, or surf the internet, while over 1,000 children, teens and adults took advantage of free,hands-on computer classes. • The Library received two grants from the California State Library totaling $40,000 for the creation of a media lab at the Archibald Library which will provide the community with access to videography, photography, art, music, film editing,virtual reality, and will include computers,tablets, sound equipment, editing software, 360'cameras,headsets and more. • In Fiscal Year 2017/18, staff processed nearly 5,200 passport applications. Staff also began to explore a variety of possibilities to streamline Passport Services at the Library in an effort to provide a more cost effective and user-friendly service to the community. Literacy Services • Nearly 40 active adult learners work with Library trained tutors to improve their literacy skills. The continuation of this program is possible due to on-going support from the State Library, Community Development Block Grant funds, and corporate and private donations. • The "Back to Basics" Children's Literacy Program served over 125 children, improving the reading level of each child and promoting reading and literacy as a pathway to success. Second Story • The Second Story offered 55 programs and contract classes with a total attendance of over 4,000 in Fiscal Year 2017/18. • Staff worked with Gyroscope,a consultant,to develop an experience concept plan that included a business plan, visitor experience concept, graphics standards, logos, and a naming opportunity and donor recognition plan. xxii Volunteer Services • Between the Friends of the Library's volunteers and the Library's volunteers,the Library offered many varied volunteer opportunities, including: bookstore operations, tutoring, programming, shelving and Summer Reading Program assistance. • The Friends of the Library volunteers accounted for approximately 15,000 volunteer hours sorting, staffing, and managing the Friends bookstores located at both libraries. The Friends bookstores raised$152,000 for the Library in Fiscal Year 2017/18. Library Foundation The Library Foundation raised over$40,000 in donations during Fiscal Year 2017/18. The Library Foundation also held a VIP Second Story Sneak Preview fundraising event to cultivate potential major donors and partnerships in October of 2017. City Management The City Manager is appointed by,and serves at the pleasure of,the City Council. The City Manager is responsible for the overall operations of the City,like a Chief Executive Officer in a private corporation.Providing professional leadership, the City Manager's Office ensures City services, activities and facilities meet the policy objectives formulated by the City Council. As part of these responsibilities,the City Manager's Office oversees various citywide and interdepartmental projects and efforts. These include: Communications The mission of the Communications Division is to provide accurate, transparent 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 digital engagement and other 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, encouraging citywide initiative participation through community engagement; and provides messaging,media relations and public relations counsel to City departments. xxiii Communications highlights include: • An increase of 39% or 13,400 subscribers to the City's primary email distribution system for electronic newsletters using GovDelivery. • Successful community engagement for the Central Park Master Plan Update. • 36%increase of social media followers in 12-month period. • Increased media engagement and outreach through various video types(Facebook LIVE,Animated). • Implemented the use of monthly five question/one-minute survey using F1ashVote. • Department staff training on various social media platforms at Staff Development Day. Healthy RC Under the leadership of the City Manager's Office, Rancho Cucamonga has developed an innovative Healthy RC program. This program is unique in its holistic approach to encouraging residents, businesses, and our own organization to adopt healthy, active, and sustainable lifestyles and practices. This approach brings together both new and existing efforts of each City department with the goal of improving the quality of life in our community. Healthy RC highlights include: • The City partnership with Grid Alternatives,a certified non-profit organization,resulted in ten homes in Rancho Cucamonga receiving free solar powered systems on their home. This provides energy cost savings and a source of clean, local energy that benefits us all. • Prepared and released 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. • Coordinated efforts with the SCAQMD, Clean Fuel Connections, and EVgo to install Rancho Cucamonga's first DC Fast Charger in the west parking structure at Victoria Gardens. This EV charging station is the fastest charging station on the market and can provide a full vehicle charge in about 20 minutes. • The City received multiple awards for the Sustainable Community Action Plan and robust energy efficiency efforts. This includes the Green Region Award from Southern California Association of Governments(SCAG), Innovation in Green Community from American Planning Association—Inland Empire Section and California Chapter, Platinum Level Beacon Spotlight Award for a 23% energy savings from the Institute for Local Government, Cool Planet Award from Southern California Edison and The Climate Registry,and the Red Tape to Red Carpet Award for Sustainable and Green Development from the Inland Empire Economic Partnership. These recognitions reinforce the Plan is truly the vision and roadmap for Rancho Cucamonga's sustainable future. xxiv • After the National League of Cities selected the City of Rancho Cucamonga to participate in a Community Schools Strategy in 2017,the City moved forward in partnering with the Cucamonga School District(CSD)to pilot a Community School Model (CSM) at Los Amigos Elementary. The CSM is a comprehensive approach to build an equitable culture of health and ensure that all children in our city are healthy, ready to learn, and reach their full potential. An MOU has established a formal partnership between the City and School District and recognizes the joint effort and responsibility of both parties in improving the health and wellness of the students and families at Los Amigos Elementary using a CSM. • The City of Rancho Cucamonga was awarded the Helen Putnam Award for Excellence in a Health and Wellness in September 2018 for Healthy RC's comprehensive mental health strategies. Throughout FY 2017/18,Healthy RC organized Mental Health Symposia as a part of the continued effort to start, and continue,the conversation around mental health,reduce the stigma in our community, and increase access to mental health resources. • In March 2018,Healthy RC hosted the first annual"Channel the Inner You"Teen Forum at the Victoria Gardens Cultural Center. More than 100 teens from public and private high schools were brought together to discuss issues in the community that affect youth, share stories on overcoming challenges, and strategies to make an impact in the community. The Forum helped strengthen the understanding of teen community needs and was a pre-curser to a comprehensive Quality of Life Survey to be distributed to three high schools in the Chaffey Joint Union High School District in fall of 2018. • 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. Most recently, Compassionate Communities collaborated with community partners and internal departments to host the first ever School Supplies Drive; in total, the City collected over 3,200 supplies for our local Bear Gulch Elementary School. Legislative Affairs Program The City Manager's Office coordinates a very active legislative program that focuses on protecting the interests of our community and identifies resources available to enhance City services and programs.Legislative efforts include researching and monitoring federal and state bills, preparing position papers and letters in response to proposed legislation,and working with legislative representatives and their staff to promote the interests of the community at the state and federal level. This year 26 bills were tracked during the Fiscal Year 2017/18 Legislative Session including 15 Assembly Bills (AB), 8 Senate Bills (SB), and 3 Federal bills. Position letters were sent to the State supporting 3 bills, opposing 7 bills, and officially watching the remaining. This year, our advocacy success rate was 43%, which measures the ultimate outcome of a legislative bill in comparison with the City's official position. xxv 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 (SLAG), and Metrolink. City officials are also actively involved in, and have taken on several leadership positions with, the League of California Cities, a statewide association that advocates for the interest of cities. 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. Performance Measurement The City Manager's Office is the lead department in developing and maintaining the City's online performance dashboard system. 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. City Clerk's Office The Office of the City Clerk is responsible for accurately recording City Council/Fire District/Housing Successor Agency/Successor Agency/Authority proceedings; processing, updating and safeguarding documents vital to the City's legislative process; providing research, information and support to the City Council, City staff, and the general public; maintaining the citywide records management and document imaging programs; and administering open and free elections in accordance with statutory requirements. During Fiscal Year 2017/18,the City Clerk's Office improved service delivery by completing the following: • Revised City-Wide Records Retention Schedule in accordance with state guidelines. • Completed implementation of an automated system for tracking and managing public records requests; receiving over 900 requests yearly. • Implemented and refined the City-Wide automated agenda workflow system to streamline the processing and retention of City Council meeting agenda packets. • Refined and continued utilization of the City's electronic document management system by increasing the number of documents stored to provide increased access to records. • Prepared public informational material and support documentation on the November 6,2018 General Election, for prospective candidates' retrieval and public access of same. • Implemented online filing of all campaign statements and Statement of Economic Interest (Form 700) in compliance with the Fair Political Practices Commission(FPPC)requirements. xxvi Animal Care and Services The Animal Care and Services Department is responsible for nearly 5,000 homeless pets each year. The Department,which began operating in May 2006,has a mission of building a community in which every adoptable pet finds home. Core responsibilities include animal care, adoptions, community outreach, and public safety. 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,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. Animal Care The Animal Care and Veterinary Divisions provide day-to-day care of a variety of species of animals. In Fiscal Year 2017/18, the Veterinary Division hosted several low-cost spay and neuter clinics and started a free spay and neuter clinic called Beat the Heat for cats that reside in Rancho Cucamonga. In addition, the Veterinary Division renewed 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. Increasing 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. Additionally,the Animal Center hosted several large adoption events and fundraisers such as Beer Kitty Kitty(at a local Brewery)and Catoberfest to offset the cost of the Kitten Nursery's operations. Community Involvement Community involvement is an important part of 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 Animal Adoption Facilities. The Animal Center has a wide variety of volunteer opportunities such as clerical, animal socialization, animal care, event planning, assisting with the Kitten Nursery, working in the Veterinary Division, assisting the Animal Behavior Division and participating in the Pet Cadet program(for volunteers 12 to 18 years of age). In Fiscal Year 2017/18,volunteers donated more than 12,000 hours of service. 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. During Fiscal Year 2017/18,the Animal Care Foundation hosted several fundraisers including a golf tournament,Bone Appetito, 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. xxvii Administrative Services Group The Departments and Divisions of the Administrative Services Group are unique in comparison to other City departments. While line departments typically provide services only to the public, the Administrative Services Group provides services and support primarily to internal staff(including the City Council, the City Manager, the various City departments,and employees)with some service areas crossing over into the public arena. The group's major service areas are: Administration, Finance, Treasury Management, Human Resources, Risk Management, 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 Fiscal Year 2017/18. A summary of each of these projects by division follows. Administration Division One of the responsibilities of the Administration Division is to facilitate and coordinate intra-and inter-departmental programs. During the Fiscal Year 2017/18, the Division facilitated numerous training programs including the Leadership Academy and the Supervisory Training Program. Department of Innovation and Technology 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, and cyber security. 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 2018 Digital Cities Survey. Accomplishments for the Department include: • Migration of several service platforms from internal servers to cloud hosted environments including iMaint fleet maintenance, Facility Dude work order management, and Telestaff Fire shift scheduling workforce management. • The implementation of new platforms replacing unstructured processes and workflows and outdated applications,including NeoGov online recruitment and onboarding platform,Novus Agenda automated agenda management, and GovQA online public records request management. • Replacement of user workstations in Engineering and Building and Safety as part of a multi-year equipment update plan to ensure all personal computers are updated to Windows 10 ahead of the end of support for Windows 7 in 2020. • Implementation of the Veeam data backup platform, migrating the City from data tapes to immediate cloud backup services. xxviii 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. The Finance Department applied for and received its 30`h 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 5th consecutive GFOA Distinguished Budget Presentation Award. The Accounting and Financial Reporting and the Budget Management Divisions previously 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 was completed in the prior year with the mapping of data from the City's financial system to Socrata's platform. After fine-tuning the appearance of the dashboard, staff provided an overview of the Open Budget website for the City Council in March 2018. The module went live to the public after this presentation. 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 2017/18 staff processed approximately 11,512 business license applications (9,425 renewals and 2,087 new filings), inspected 1,041 businesses, and collected revenues totaling$2,733,979. The Division also implemented digital document management software to scan all new business license applications as well as business license renewals and store them as digital files as compared to the former paper files. Additionally, QR code readers will be utilized to increase efficiencies for returned mail and correspondence. The Division also went live during 2018 on the City's website with its Rancho Cucamonga Business Search application. Users can input various search criteria to identify the location of specific business types in the City along with their contact information and Business License status. The data can also be download for easy reference or additional analysis. 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 2017/18,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 $28.48 million, including $59,800 in direct billings, in special taxes and assessments on the Fiscal Year 2018/19 Tax Roll for the City's 35 special districts. The Division also assisted the Fire District in placing weed abatement tax liens on the Fiscal Year 2018/19 Tax Roll in the total amount of$44,625. xxix 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 recruitment and selection, classification, compensation, employee development, and labor relations. In addition,the Department provides risk management services including worker's compensation and general liability, employee wellness, and safety. Key accomplishments this year include the following: • Successfully concluded negotiations with RCCEA bargaining unit, resulting in a labor agreement through June 2020. • Initiated HR public programs including a three(3)part workshop designed to help the public improve their job search, resume building, and interviewing skills with the City of Rancho Cucamonga or other local governments. • Increased social media presence to help brand the City of Rancho Cucamonga as an employer of choice and improve recruitment efforts. Social media outreach has increased by 295%with an increase in followers by 3%. • Initiated recruitment practices to enhance collaboration with hiring managers and improve recruitment outcomes. • Initiated Onboarding software implementation to enhance the new hire experience, increase engagement, and improve new employee's first year performance outcomes. • Continued recruitment practices to improve growth opportunities for existing employees. • Continued access to learning opportunities for employees. • Continued oversight of reporting and compliance with the Affordable Health Care Act. • Continued employee programs and initiated new programs to enhance the "Employee Experience" including the Baby on Board Program, Take Your Coworker to Work Program, Annual Staff Development Day, RC Cares program,Remote Work Policy, and Dress for Your Work Day Policy. • Improved the understanding of Workers' Compensation process and procedures with Fire District employees to make sure employees understand their rights and responsibilities. • Continued employee wellness programs to assist employees with health and well-being initiatives including "Know Your Numbers" campaign, Five a Day Challenge, Biggest Loser Challenge, Annual Employee Health Fair,Lunch and Learns, and On-Site Massage Therapy. 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. xxx Procurement Division The Procurement Division is authorized to procure services or goods for the best value, at the lowest price, from the most responsive vendor. The Division performs as the City's centralized procurement agent and authorizes all City purchases by ordinance requirements. It is also charged with the disposition of surplus and obsolete property. Division highlights this year include the following: • The Procurement Division applied for and received the 2018 Achievement of Excellence in Procurement(AEP) award issued by the National Procurement Institute,Inc. The continuously evolving AEP criteria are designed to measure state of the art in public procurement best practices. The Procurement Division is one of only forty- seven (47) agencies in California and one of only sixty-five (65) cities in the United States and Canada to receive the award in 2017. This is the tenth consecutive year that the Procurement Division has been the recipient of the prestigious AEP award. • Efficiently disposed of surplus City assets through an online surplus auction site to generate $70,348 in additional revenue for the City. • The Procurement Division conducted fifty-three(53) solicitations and processed five hundred and seventy-one (571)purchase orders for a total spend amount of$41,676,840. • Executed the new bidding thresholds and procedures, allowing flexibility for departments on smaller scale procurements and professional services. • Implemented the online Procurement Requisition program streamlining the process, providing electronic workflow approval and moving Team RC closer to a paperless work environment. 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, 2017. 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 thirty 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. xxxl 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 xxxii CITY OF RANCHO CUCAMONGA CITY OFFICIALS JUKE 30, 2018 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 Matt Burris 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 Ivan Rojer Human Resources Director Robert Neiuber Library Director Julie Sowles Police Chief Donny Mahoney Public Works Services Director Bill Wittkopf xxxiii CITY OF RANCHO CUCAMONGA ORGANIZATION CHART Citizens of Rancho Cucamonga City Clerk City Council City Treasurer City Attorney City Manager Administrative Civic and Police Economic and Services Cultural Services Department Community Admin/Procurement Development Fire Finance Community District Services Animal Care Human Library and Services Resources Services Community Innovation and Records Improvement Technology Management Building and Engineering FPlanning Public Works Safety7 Services Services xxxiv Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rancho Cucamonga California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2017 0Aa&PIA06. P. *M�a Executive Director/CEO xxxv THIS PAGE INTENTIONALLY LEFT BLANK City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2018 Financial Section THIS PAGE INTENTIONALLY LEFT BLANK LSUe 000 000 •• 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, 2018, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. PrimeGlobal gng:,- lndepcnde-nt Accounting Cirnu- 203 N.Brea 1 Suite 203 1 Brea,CA 92821Phone:714.672.0022 L L:*::: .. 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, 2018, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note 15 to the financial statements, in 2018 the City adopted new accounting guidance, GASBS No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions. Our opinion is not modified with respect to this matter. 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 schedules for the general fund, Housing Succesor Agency, and Fire District, the schedule of changes in net pension liability and related ratio for the agent multiple-employer plans, the schedule of employer 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 the schedule of changes in net pension liability and related ratios for PARS retirement enhancement plan, the schedule of plan contributions PARS retirement enhancement plan, the schedule of changes in net OPEB and related ratio, and the schedule of proportionate share of the net OPEB liability 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 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 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 are fairly stated in all material respects in relation to the basic financial statements as a whole. 2 LSL:9:::so To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2018 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 solely to describe the scope of our testing of the effectiveness of the City's internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Brea, California December 19, 2018 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 City of Rancho Cucamonga Management's Discussion and Analysis Year Ended June 30, 2018 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, 2018. 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 by $1,269,835,581. This amount is reported as total net position. Of this amount, $853,268,141 represents investment in capital assets, $315,439,932 represents resources that are subject to restriction on how they may be used (restricted net position), and $101,127,508 represents unrestricted net position. • The City's beginning net position of$1,271,797,361 has been decreased by$13,593,024 as a result of restatements. The restatement is the combination of a decrease of$14,267,639 in the governmental activities, resulting from the implementation of a new accounting standard discussed below, and an increase of$674,615 in the business type activities, resulting from accounting adjustments. A detailed explanation of these restatements has been provided in Note 15 of the notes to financial statements. The restated beginning net position of the City is $1,258,204,337. • The City's net position increased by $11,631,244, excluding the restatements noted above, during Fiscal Year 2017/18. This change reflects increases of$8,074,406 in the governmental activities and $3,556,838 in the business-type activities. • The Lighting Districts Fund is reported as one of the major governmental funds as of June 30, 2018. The Lighting Districts Fund has a deficit fund balance of $6,956,936 due to the advance from the General Fund. The interfund advance is described in Note 6 of the notes to financial statements. • The governmental funds reported a combined ending fund balance of $440,828,776, a decrease of $17,485,491, or 4%from the prior fiscal year. The General Fund represents $115,082,093 of the total fund balance. The fund balance of the General Fund increased by $3,116,777, or 3% from the prior fiscal year. Of this balance, $16,980,622 is nonspendable, $6,351,557 is restricted, $71,335,361 is committed, and $20,414,553 is assigned. • The City implemented GASB Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits other than Pensions which impacted the accounting and financial reporting for other post-employment benefits (OPEB). The implementation of GASB Statement No. 75 resulted in the elimination of a $14,477,639 prepaid OPEB asset reported in the prior fiscal year and added a $291,000 net OPEB liability as of June 30, 2018. The OPEB plan and financial reporting elements are described in Note 11 of the notes to financial statements. 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. 5 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 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 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 and long- term liabilities(e.g., 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. 6 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 180 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 of the notes to financial statements more fully describes each basis of accounting. Governmental funds. Most of the City's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. The governmental fund financial statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. The differences between the results in the governmental fund financial statements and those in the government-wide financial statements are explained in a reconciliation following each governmental fund financial statement(see pages 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 Lighting Districts Special Revenue Fund, the Housing Successor Agency Special Revenue Fund,and the Fire District Special Revenue Fund,all of which are considered major funds. Major fund determination is based on guidelines pursuant to GASB Statement No. 34. Data for the other 68 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 118 through 152 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 95 through 98 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. 7 In the fund financial statements section, proprietary funds provide similar information to that contained in the business-type activities in the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Sports Complex, RCMU, 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 210 through 212 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 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 216 through 226 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 30,2018,total assets and deferred outflows of resources(of which 61% represents net capital assets of the City, including infrastructure) exceed total liabilities and deferred inflows of resources by$1,269,835,581. 8 The table below is a condensed version of the City's statement of net position for the fiscal year ended June 30, 2018, with comparative data from the previous year. Net Position June 30,2018 (In Thousands) Governmental Business-Type Activities Activities Total 2018 2017 2018 2017 2018 2017 Current and other assets $ 492,479 $ 516,872 $ 19,198 $ 16,377 $ 511,677 $ 533,249 Net pension asset 50 - - - 50 - Capital assets, net 819,589 792,335 33,679 32,434 853,268 824,769 Total assets 1,312,118 1,309,207 52,877 48,811 1,364,995 1,358,018 Deferred outflows related to OPEB 1,054 - - - 1,054 - Deferred outflows related to pension 29,869 25,303 947 809 30,816 26,112 Total deferred outflows 30,923 25,303 947 809 31,870 26,112 Current and other liabilities 20,072 14,041 1,626 1,959 21,698 16,000 Long-term net OPEB liabilty 291 - - - 291 - Long-term net pension liabilities 82,436 71,140 2,456 2,120 84,892 73,260 Long-term obligations outstanding 14,970 16,459 - - 14,970 16,459 Total liabilities 117,769 101,640 4,082 4,079 121,851 105,719 Deferred inflows related to pension 4,946 6,351 232 263 5,178 6,614 Total deferred inflows 4,946 6,351 232 263 5,178 6,614 Net position: Investment in capital assets 819,589 791,849 33,679 32,434 853,268 824,283 Restricted 314,706 376,102 735 771 315,441 376,873 Unrestricted 86,031 58,568 15,096 12,073 101,127 70,641 Total net position $ 1,220,326 $ 1,226,519 $ 49,510 $ 45,278 $ 1,269,836 $ 1,271,797 The chart below displays the proportionate sections of the City's net position. Net Position June 30,2018 $1,269,835,581 Investment in capital assets 67 2% Unrestricted $0% _ _Restricted For Community development Restricted for Public projects benefit-Municipal 13.8% Utility 0.1% Restricted for Restricted for Restricted for Restricted for Restricted far i Public safety Restricted for Community Engineering and Fire Parks and 0 1% Capital projects services public works protection Recreation 2.5% 0.5% 4.8% 2.8% 0.4% 9 Net Position June 30, 2018 (In Thousands) Percent(%)of Governmental Business-Type Total Net Activities Activities Total Position Investment in Capital Assets $ 819,589 $ 33,679 $ 853,268 67.2% Restricted for: Community development projects 174,783 - 174,783 13.8% Public safety 792 - 792 0.1% Parks and Recreation 5,215 - 5,215 0.4% Fire protection 35,438 - 35,438 2.8% Engineering and public works 60,359 - 60,359 4.8% Community services 6,006 - 6,006 0.5% Capital projects 32,113 - 32,113 2.5% Public benefit-Municipal Utility - 735 735 0.1% Unrestricted 86,031 15,096 101,127 8.0% Total Net Position $ 1,220,326 $ 49,510 $ 1,269,836 100.0% The largest portion of the City's net position represents the City's investment in capital assets in the amount of $853,268,141, which is comprised of $819,589,002 for governmental activities and $33,679,139 for business-type activities. This classification of net position is approximately 67% of total net position. This amount consists of capital assets, net of accumulated depreciation, and is 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 $315,439,932, which is comprised of $314,706,032 for governmental activities and $733,900 for business-type activities. This classification of net position is approximately 25% 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. The City's unrestricted net position is $101,127,508, which is comprised of$86,031,110 for governmental activities and $15,096,398 for business-type activities. This classification of net position is approximately 8%of total net position. This amount represents the portion of net position that does not meet the definition of"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 2017/18, total net position increased by $11,631,244, which is comprised of increases of $8,074,406 in governmental activities and $3,556,838 in business-type activities. The current year change in net position is a 78% decrease from the prior fiscal year, before restatement. The restatement of beginning net position due to the implementation of GASB Statement No. 75, which impacted the accounting and financial reporting of the Fire District's OPEB, decreased the net position of the governmental activities by $14,267,639. Furthermore, a restatement of beginning net position of the business-type activities to increase it by$674,615 is the result of capitalizing contributed infrastructure not recorded in prior years in the amount of$337,135 and recording a prior year note receivable in the amount of$337,480 in the Municipal Utility Fund. • Total assets for the current year were $1,364,995,400, an increase of $6,977,324 to the City's net position, or 0.5%,from the prior fiscal year. The most significant components of the change are due to the increase in net capital assets of $28,498,314 and the elimination of a $14,477,639 prepaid OPEB asset due to the implementation of GASB Statement No. 75. 10 • Net capital assets (e.g., infrastructure and other capital assets such as buildings, vehicles, furniture and fixtures, etc.)for the current year were$853,268,141. This resulted in an increase of$28,498,314, net of accumulated depreciation,to the government's net position, or 3.5%,from the prior year balance of $824,769,827 before restatement. The total overall increase in net capital assets is due to the following: (1) increase in construction-in-progress for various projects in the amount of$41,575,747 in governmental activities and $1,340,730 in business-type activities; (2)contributed capital assets in the amount of$3,653,103 to the governmental funds, of which $3,096,800 are developer contributions of donated infrastructure; (3) various purchases of governmental activity equipment and vehicles in the amount of$906,584; (4) restatement of$370,046 resulting from contributed capital not capitalized in prior years in business-type activities;and(5)depreciation expense of$17,388,455 in the governmental activities and $1,504,693 in the business-type activities. • Net pension liabilities were $84,891,614 which is an increase of $11,631,598, or 16%, from the prior year amount of$73,260,016. The increase was primarily due to a reduction in the discount rate used to measure the total pension liability for the CalPERS pension plans from 7.65%to 7.15%. Additionally, the change in assumption was the primary reason for an increase in the deferred outflows related to the City's pension plan,which increased$4,703,627, or 18%, to$30,815,662. More information on the pension plans can be found in Notes 9 and 10 of the notes to financial statements. • A net OPEB liability of $291,000 and a $1,054,169 deferred outflow related to the OPEB liability are included for Fiscal Year 2017/18 due to the implementation of GASB Statement No. 75. More information on the OPEB plan can be found in Note 11 of the notes to financial statements. 11 Below is the condensed statement of activities of the City's governmental and business-type operations for the year ended June 30, 2018. Changes in Net Position Year Ended June 30, 2018 (In Thousands) Governmental Business-Type Activities Activity Total 2018 2017 2018 2017 2018 2017 Revenues: Program Revenues: Charges for services $ 16,735 $ 15,280 $ 12,669 $ 12,069 $ 29,404 $ 27,349 Operating grants and contributions 8,846 5,327 - - 8,846 5,327 Capital grants and contributions 16,584 8,184 679 4,561 17,263 12,745 General Revenues: Taxes: Property taxes 85,409 79,857 - - 85,409 79,857 Admissions tax 6 5 62 128 68 133 Transient occupancy taxes 3,578 3,282 - - 3,578 3,282 Sales taxes 31,478 29,288 31,478 29,288 Franchise taxes 7,998 7,538 7,998 7,538 Intergovernmental-Motor vehicle in-lieu 93 85 - - 93 85 Use of money and property 5,781 5,735 391 256 6,172 5,991 Other 7,955 6,811 601 49 8,556 6,860 Total revenues 184,463 161,392 14,402 17,063 198,865 178,455 Expenses: General government 31,792 19,738 - - 31,792 19,738 Public safety-police 38,576 36,753 38,576 36,753 Public safety-fire protection 34,558 32,821 34,558 32,821 Public safety-animal center 3,263 3,414 3,263 3,414 Community development 16,675 16,799 16,675 16,799 Community services 19,060 16,438 19,060 16,438 Engineering and public works 31,574 35,927 31,574 35,927 Interest on long-term debt 214 172 - - 214 172 Sports Complex - - 2,852 2,981 2,852 2,981 Municipal Utility 8,419 7,905 8,419 7,905 REGIS Connect 105 168 105 168 Fiber Optic Network - 145 - 145 - Total Expenses 175,712 162,062 11,521 11,054 187,233 173,116 Increase(decrease)in net position before transfers and extraordinary item 8,751 (670) 2,881 6,009 11,632 5,339 Transfers (676) (223) 676 223 - - Special item - 38,258 - - 38,258 Increase(decrease)in net position 8,075 37,365 3,557 6,232 11,632 43,597 Net Position at Beginning of Year 1,226,519 1,183,570 45,278 39,046 1,271,797 1,222,616 Restatement of Net Position (14,268) 5,584 675 - (13,593) 5,584 Net Position at End of Year $1,220,326 $1,226,519 $ 49,510 $ 45,278 $1,269,836 $ 1,271,797 The condensed statement of activities above shows total net position increased by $11,631,244 before restatement. Governmental activities increased the City's net position by $8,074,406, accounting for approximately 70% of the total growth in net position, paired with an increase of $3,556,838 in the Business-Type activities' net position. The prior year's net position was restated to decrease by $14,267,639 for Governmental activities and increase by$674,615 for Business-Type activities, as explained earlier. 12 Governmental Activities The following charts provide a snapshot of the City's governmental activities for Fiscal Year 2017/18, showing the distribution of revenues by source as well as a comparison of revenues versus expenses by program. Revenues By Source Governmental Activities Year Ended June 30,2018 $184,463,476 Taxes 69.7% Other 4.3% Use of Money 8 Property -- _ 3.1% - ------_ Charges for Services 9.1% Capital Contributions and Operating Contributions Grants and Grants 9.0% 4.8% Revenue and Expense By Function Governmental Activities Year Ended June 30,2018 (In Thousands) $200.000 $180.000 $160,000 $140,000 $120.000 $100.000 $80,000 $60.000 $40.000 $- General General Public safety- Public Safety- Public Safety- [ammunly Cornmunly Engineerng Interest on Revenues, Total Fire and Public Long-Term Governmental Govemment Police Protection Animal center Development Servioes Works Debi Special Item, Activities and Tran sfers Revenues $5x17 1,962 342 212 1,176 3.884 29,370 - $142.299 $184,462 Expenses $31,792 38.576 34.558 3,263 16,675 19,06o 31,574 214 $676 $176,388 ■Revenues "Expenses 13 The City's governmental activities increased its net position by $8,074,406 at the end of the fiscal year. This change is comprised of a net cost of services of $133,548,744 offset by transfers to business-type activities of$676,159 and general revenues of$141,299,309. As compared to the City's prior year outcome of $37,365,327, this is a decrease of $29,290,921 or 78%. The most significant changes in the Governmental activities in revenues and expenses are discussed below: Governmental Activities (In Thousands) Total Cost Net Cost of Services of Services 2018 2017 2018 2017 General Government $ 31,792 $ 19,738 $ (26,575) $ (14,746) Public Safety-Police 38,576 36,753 $ (36,614) $ (34,896) Public Safety-Fire Protection 34,558 32,821 $ (34,216) $ (32,788) Public Safety-Animal center 3,263 3,414 $ (3,051) $ (3,223) Community Development 16,675 16,799 $ (15,499) $ (16,547) Community Services 19,060 16,438 $ (15,176) $ (12,689) Engineering and Public Works 31,574 35,927 $ (2,204) $ (18,210) Interest on Long-Term Debt 214 172 $ (214) $ (172) Total $ 175,712 $ 162,062 $ (133,549) $ (133,271) • The net cost of services increased to $133,548,744 from the prior year amount of $133,271,502, an increase of$277,242 from all areas of the governmental activities, which had a negative impact on the City's net position, primarily due to the positive and negative effects in the following areas: o Operating contributions and grants increased to $8,845,496 from the prior year amount of $5,326,579, an increase of $3,518,917, predominantly from receipts of grant-related reimbursements. o Capital contributions and grants increased to $16,584,193 from the prior year amount of $8,184,228, an increase of $8,399,965, predominantly from donated infrastructure and rights-of-way from developers, receipts of developer fees, and reimbursements for certain capital projects based on certain agreements previously established. o Governmental expenses increased to $175,712,911 from the prior year amount of$162,062,728, an increase of$13,650,183, resulting from the net effect of increases and decreases in the following areas: (1) increase of $12,053,811 in General Government primarily from the Lighting Districts Fund's purchase and acquisition of Southern California Edison owned streetlights and the installation of LED lighting to streetlights, intersections, and bridges, and other one-time costs necessary to inventory the streetlights; (2) increase of$1,822,952 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$1,736,605 in Public Safety—Fire Protection and $2,622,700 in Community Services from various operational areas; and (4) decrease of $4,352,920 in Engineering and Public Works division primarily due to the transfer of$4,560,732 for the existing fiber optic network to the Fiber Optic Network Fund in the prior year. • General Revenues and Transfers increased to $141,623,150 from the prior year amount of $132,601,661, an increase of$9,021,489, which is an economic indicator reflecting the growth of the City. The increase is mostly due to the following areas: o Revenue from taxes increased to $128,469,600 from the prior year amount of $119,970,717, an increase of$8,498,883, mostly due to the following areas: (1) increase of$5,552,598 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; (2) increase of$295,646 in transient occupancy taxes; (3) increase of $2,189,908 in sales taxes; and (4) increase of $459,533 in franchise taxes. 14 o Other revenue increased to $7,955,074 from the prior year amount of$6,811,380, an increase of $1,143,694, mostly from the Housing Successor Agency receipt of approximately$950,000 from a developer for the acquisition, construction and rehabilitation of affordable housing units for the Rancho Verde Village. • There was a special item in the prior fiscal year in the amount of$38,257,705 to record the transfer of capital assets from the Successor Agency to the City. This item did not recur in the current fiscal year. Business-Type Activities The following chart reflects the City's Business-Type activities for Fiscal Year 2017/18, showing a comparison of revenues versus expenses by function. Revenue and Expense By Function Business-Type Activities Year Ended June 30,2018 $18,000 (In Thousands) $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $- Sports Complex Municipal Utility REGIS Connect Fiber Optic General Revenues Total Business- Network andTransfers Type Activities Revenues $249 12,4178 43 648 $1,730 $15,078 Expenses $2,852 8,419 105 145 $- $11,521 ■Revenues ■Expenses Business-Type Activities (In Thousands) Total Cost Net Cost of Services of Services 2018 2017 2018 2017 Sports Complex $ 2,852 $ 2,981 $ (2,603) $ (2,763) Municipal Utility 8,419 7,905 3,989 3,808 REGIS Connect 105 168 (62) (53) Fiber Optic Netvv ork 145 - 503 4,584 Total $ 11,521 $ 11,054 $ 1,827 $ 5,576 The City's Business-Type activities' net position increased by $3,556,838, a decrease of $2,675,481, or 43%, as compared to the prior year amount of $6,232,319. 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$220,485, an increase of $756,812 from the prior year. While there was a decrease in net position, the operating revenues increased $191,985 and operating expenditures decreased $122,697 in the current year. Additionally, the interfund transfer from the General Fund increased $487,672 to cover budgeted amounts. 15 • The Municipal Utility experienced an increase in net position in the amount of$3,334,852, an increase of$656,201 from the prior year. The increase in net position was primarily due to an increase in sales and service charges of$604,435 from the prior year. As discussed earlier, the beginning net position of the Municipal Utility Fund was restated by$674,615. • REGIS Connect experienced a decrease in net position in the amount of$62,972, a decrease of$9,563 from the prior year. This was primarily due to sales and service charges decreasing by$71,190 and a corresponding $49,766 decrease in reimbursements paid to the General Fund to offset the cost of staffing in the Department of Innovation and Technology (DoIT)that perform work for REGIS Connect clients. • Fiber Optic Network experienced an increase in net position in the amount of $505,443. In the prior fiscal year, the City transferred the existing fiber optic network to the Fiber Optic Network fund and during Fiscal Year 2017/18 an additional $588,730 of fiber optic infrastructure was contributed. Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The following financial analysis is performed only for the governmental and proprietary funds. The fiduciary funds are excluded from this analysis as they do not represent resources available to the City. Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, assigned and unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The combined fund balance of $440,828,776 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 $115,082,093. Of the total General Fund balance, $16,980,622, or 15%, are nonspendable fund balances, which means that these amounts cannot be spent because they are not in spendable form or must be maintained intact; $6,351,557, or 5%, are restricted fund balances which are the result of externally enforceable limitations on use; $71,335,361, or 62%, 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 $20,414,553, or 18%, are constrained by an intent for specific purposes by City management, but are neither restricted nor committed, in accordance with the City's policy. 16 The following chart illustrates the components of the General Fund Balance as of June 30, 2018. General Fund Balance June 30,2018 $115,082,093 Committed 62.0% Restricted 5.5% Nonspendable Assigned 14.8% 17.7% Percent (%)of Total Fund General Fund Balance (In Thousands): Total Balance Nonspendable 16,981 14.8% Restricted 6,352 5.5% Committed 71,335 62.0% Assigned 20,414 17.7% Total Fund Balance $ 115,082 100.0% 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 its accompanying resolution before the City Council or Fire Board members for approval at the end of each fiscal year. The City's Fund Balance Policy for the committed fund balances are as follows: • Changes in Economic Circumstances The funding goal for the fund balance committed for Changes in Economic Circumstances 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. 17 • 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. • 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. 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. 18 The balance sheet presents the General Fund, the Lighting Districts Special Revenue 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$440,828,776, decreased by $17,485,491, or approximately 4%, from the prior year amount of$458,314,267. The General Fund has a fund balance of$115,082,093, which has increased by $3,116,777, or 3%, from the prior year primarily due to the net result of revenues, expenditures, and other financing uses activities. The Lighting Districts Fund is being reported as a major fund as of June 30,2018 and has a deficit fund balance $6,956,936, which has decreased by $11,638,014, or 249%, from the prior year primarily due to the purchase and acquisition of Southern California Edison owned streetlights and the installation of LED lighting to streetlights, intersections, and bridges, and other one-time costs necessary to inventory the streetlights paid through an interfund loan from the General Fund. This fund was reported as a nonmajor governmental fund in the prior year. The Housing Successor Agency Special Revenue Fund has a fund balance of $135,900,697, which has increased by $1,172,657, or 1%, from the prior year primarily due to a receipt of approximately $950,000 from a developer earmarked for future affordable housing project costs. 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$64,861,527, which has decreased by$8,328,130, or 11%, from the prior year primarily due to increased capital outlay activity for the All-Risk Training Facility and the replacement of a fire engine. It should be noted that the total fund balance for the Fire District Special Revenue Fund of$64,861,527 is $1,875,699 less than the total fund balance per the District's component unit financial statements of $66,737,226. This is due to differences in the reporting of the advance from the City to the District on the City's financial statements versus the District's component unit financial statements. On the City's financial statements, the advance is treated as an interfund liability since the District is basically viewed as one of the departments of the City. There is an offsetting interfund asset(advances to other funds)in the General Fund. In order to reflect this liability on the District's balance sheet within the City's financial statements, resources must be allocated from the District's fund balance to provide funding for the liability for reporting purposes only. On the Fire District's component unit financial statements,the advance is treated as a long- term liability and does not require the allocation of fund balance to fund the liability. For the entity-wide financial statements, the advances to and from other funds are eliminated against each other as they both relate to the City as a whole. The other governmental funds 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 56 special revenue funds and 12 capital project funds.These funds have a combined fund balance of$131,941,395,which has decreased by$1,808,781, or 1%, from the prior year, primarily due to the following: o Gas Tax Special Revenue Fund has a fund balance of $9,303,405, which has increased by $1,600,657 from prior year fund balance of$7,702,748 as a result of increased revenues, primarily due to gas tax revenues from SIB 1. o Park Development Special Revenue Fund has a fund balance of$8,200,526,which has decreased by $4,273,038 from prior year fund balance of $12,473,564 as a result of increased capital expenditures for the RC Sports Center. o Drainage Facilities Special Revenue Fund has a fund balance of$5,124,662, which has increased by$774,065 from prior year fund balance of$4,350,597 as a result of increased developer activity. o Landscape Maintenance Districts Special Revenue Fund has a fund balance of$17,454,036,which has increased by$1,545,352 over the ten districts from prior year fund balance of$15,908,684. o Transportation Special Revenue Fund has a fund balance of$24,453,464, which has increased by $1,663,524 from prior year fund balance of $22,789,940 as a result of increased development activity. 19 o Citywide Infrastructure Improvement Fund has a fund balance of $24,040,060, which has decreased by $3,574,778 from prior year fund balance of $27,614,838 due to capital outlay expenditures during the year. 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)the 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 $49,509,437 of which $33,679,139 represents the amount invested in capital assets and $733,900 is restricted for the purpose of public benefit through the Municipal Utility. Unrestricted net position amounts to $15,096,398. The increase in net position for the enterprise funds of $3,556,838 is due to the following: • Before transfers from the General Fund in the amount of $1,917,299, the Sports Complex Fund experienced a loss of $2,137,784. Taking into account the transfers from the General Fund the net decrease in the fund's net position is $220,485. • Before capital contributions from developers of $90,680 and transfers to the General Fund in the amount of$1,241,140,the Municipal Utility Fund generated income(the net of revenues and expenses) in the amount of $4,485,312. The funding for the budgeted transfer to the General Fund is to offset general City operations. Taking the capital contributions and transfer to the General Fund into consideration resulted in a net increase in the fund's net position of$3,334,852. As discussed earlier, the beginning net position of the Municipal Utility Fund was restated by$674,615 to record prior years assets that were not capitalized in the amount of$337,135 and a prior year note receivable that was not recorded in the amount of$337,480. • REGIS Connect Fund experienced a decrease in net position in the amount of$62,972, primarily due to a decrease in revenues as a result of reduced activity. • Before capital contributions from the City of $588,730, the Fiber Optic Network Fund experienced a loss of $83,287. Taking the capital contributions into consideration resulted in a net increase in the fund's net position of$505,443. Net position for the internal service funds is $9,851,911, of which $5,920,061 represents the amount invested in capital assets. Unrestricted net position amounts to $3,931,850 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 $1,463,516 due to operational costs. • Equipment and Vehicle Replacement Fund experienced a loss in the amount of$1,052,522 due primarily to depreciation expense related to the planned replacement of City vehicles and equipment. 20 • Before transfers from the General Fund in the amount of $182,940, the Computer Equipment and Technology Replacement Fund experienced a decrease in net position in the amount of $593,934 primarily due primarily to depreciation expense related to the planned replacement of City computer equipment and technology and a decrease in nonoperating revenues due to the shifting of fiber conduit lease revenues to the Fiber Optic Network Fund. After net transfers, the Computer Equipment and Technology Replacement Fund experienced a decrease in net position in the amount of$410,994. 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 $86,497,428 were $2,399,678 more than the final budgeted revenues of $84,097,750. The significant areas that showed variances from the budget are: (1) Taxes had a positive variance of $2,595,811 primarily due to unitary tax exceeding budget by $1,295,816,due to a one-time adjustment from the County for prior year payments, and sales tax exceeding budget by $934,154; (2) use of money and property had a net negative variance of $829,333 due to a combination of a negative unrealized investment loss variance of $985,764 offset by a positive interest earnings variance of$156,431; and (3) miscellaneous revenue had a positive variance of$242,755 due to unbudgeted housing court receivership reimbursements in the amount of $128,193 and non-abated reimbursements exceeding budget by$109,205. The General Fund's actual ending expenditures of$85,410,249 were$3,249,623 less than the final budget of$88,659,872. The significant areas that showed positive variances from the budget are in the following areas: o General Government in the amount of$490,011 due to savings from salaries, fringe benefits, and contract services. o Public Safety — Police in the amount of $456,019 due to savings from contract services, vehicle operations and maintenance, and vehicle collision repair. o Community Development in the amount of$527,954 due to savings from Planning's reimbursable contract services and Building and Safety's contract services. o Community Services in the amount of $308,152 due to savings mostly from salary and fringe benefits. o Engineering and Public Works in the amount of $959,529 savings from salaries, fringe benefits, contract services, and other operations and maintenance expenditures. o Transfers Out in the amount of$389,770 savings due to the net of a less than anticipated transfer needed for the Sports Complex of$389,761. 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.). 21 At the end of the fiscal year, the City had $853,268,141, net of depreciation, invested in a broad range of capital assets. This amount represents a net increase (including additions and deductions)of$28,498,314 from the prior year amount of$824,769,827. The table below presents summary information on the City's capital assets. Capital Assets For the Year Ended June 30, 2018 (Net of Depreciation, In Thousands) Governmental Business-Type Activities Activities Total 2018 2017 2018 2017 2018 2017 Land $ 92,937 $ 93,210 $ 5,451 $ 5,451 $ 98,388 $ 98,661 Right-of-way 237,013 237,065 - - 237,013 237,065 Construction in progress 93,939 64,003 1,544 3,016 95,483 67,019 Buildings improvements 113,745 116,590 6,456 6,887 120,201 123,477 Improvements other than buildings 27,197 25,280 2,491 57 29,688 25,337 Equipment and vehicles 10,027 10,633 107 120 10,134 10,753 Furniture and fixtures 489 637 - - 489 637 Infrastructure 243,317 243,733 17,630 16,903 260,947 260,636 Intangible 925 1,184 - - 925 1,184 TOTALS $ 819,589 $ 792,335 $ 33,679 $ 32,434 $ 853,268 $ 824,769 As discussed earlier, the most significant changes in capital assets for governmental activities are the increase in construction-in-progress for various projects, 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$41,575,747 for the construction of the Jersey Station Training Facility, Interstate 15 (1-15)/Base Line Road Interchange construction project, relocation of the Family Sports Center, and other various park and street improvements. The most significant changes in capital assets for business-type activities include the increase in CIP. Additions to CIP in the business-type activities amount to $1,340,730 for various infrastructure projects associated with the Municipal Utility and Fiber Optic funds. Furthermore,as discussed earlier,the Municipal Utility Fund beginning balance was restated in the net amount of $337,135 resulting from contributed infrastructure assets not capitalized in prior years. Additional information on the City's capital assets can be found in Note 5 of the notes to financial statements. Debt Administration At year end, the City's governmental activities had total debt outstanding in the amount of$14,970,368 for advances from Successor Agency, claims and judgments payable, and accrued employee benefits, compared to $16,458,190 in the prior year, a decrease of$1,487,822, or 9% from the prior year. Capital Leases of$486,229 have been fully paid and General Liability and Workers'Compensation payments made during FY 2017/18 amounted to $1,459,114. There is no long-term debt for the business-type activities. 22 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, 2018 (In Thousands) Governmental Activities 2018 2017 Capital Leases $ - $ 486 Advances from Successor Agency 3,954 3,954 Claims and Judgments Payable 3,519 4,415 Accrued Employee Benefits 7,497 7,604 Total Long-Term Debt $ 14,970 $ 16,459 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 In its third quarterly report for September 2018, the UCLA Anderson Forecast's quarterly outlook for the national economy anticipates a slow decrease in growth. The real Gross Domestic Product (GDP) is expected to continue to grow at 3% in 2018 due to lower income taxes, increased government spending and private investment. But it is anticipated that the economic stimulus will likely run out and growth is anticipated to slow down to 2% in 2019 and to a near recession at 1% in 2020. With the economy approaching full employment, employment growth is expected to slow down. The national unemployment rate is anticipated to go down to 3.5%. California's unemployment rate according to the Employment Development Department (EDD) as of October 2018 fell to new record low of 4.1% in September 2018, a decrease from September 2017 unemployment rate of 4.5%. The U.S. unemployment rate fell to 3.7%in September 2018, a decrease from prior year unemployment rate of 4.2%. The following economic factors currently affect the City of Rancho Cucamonga and were considered in the developing the FY 2018/19 budget. Locally, the following key economic indicators reflect the continued growth and prosperity of the City. • Low unemployment rate. The City of Rancho Cucamonga's unemployment rate is at 2.9% as of September 2018. That is well below the State level of 4.1% and San Bernardino County level of 3.8%. • Modest growth next fiscal year in Sales Tax(1.34% increase), Property Tax (2.53% increase), Vehicle License Fees and Property Tax In-Lieu of VLF (6% increase), and Transient Occupancy Tax(20.56%). • The City proactively develops public safety programs and facilities to meet community needs. Additional shopping center, restaurants, several hotels, and mixed-use projects are on their way to completion. Industrial warehouse building construction is booming. Advanced manufacturing and corporate offices are continuously growing in the City. And the City is continuing planning and developing major parks and recreational projects. • Vacancy rates in the area for warehousing in the greater Rancho Cucamonga area are in the low 4% range, down over 2% from the prior year. Rental rate is 8% higher from the prior year. Rancho Cucamonga is one of the cities in this region with significant employment in manufacturing. • Growth potential in Leisure and Hospitality industry. A 108-room hotel opened last year, and another 126-room hotel is under construction, expected to open before the end of the calendar year. The occupancy rate of hotels in the city run between 80% and 90%. 23 • 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 2018/19 Adopted Budget on the City's website. While the City's revenue picture is strong, it faces ongoing challenges on the expenditure side in key areas such as: • A series of minimum wage increases that began in July 2014, when minimum wage was increased to $9 per hour. In January of 2016, the minimum wage rose to $10 per hour and in January of 2018 it rose to$11 per hour. Over the next several years, it will be increased to$15 per hour. These minimum wage increases have both direct and indirect impacts on the City's budget through the wages it pays its part-time employees and indirectly through its contracts with external vendors. While some portion of the increased wages, through disposable income, might be recaptured through sales tax generation, it is likely to be minimal. • The Police Department's budget will increase nearly by 7%. Increases in the cost of law enforcement services are due primarily to increased public safety pension and labor costs, as well as increased staffing levels which enhance the City's reputation as one of the safest communities in Southern California. Overall, the Police Department costs are rising approximately 5 to 7% annually, and they are 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 five years. From FY 2018/19 to FY 2023/24, it is anticipated that the PERS employer contribution rates will increase from 18.59% to 26.37% for City Miscellaneous, 22.92% to 38.44% for Fire District Miscellaneous, and 37.21% to 51.98% for Fire District Safety Tier 1 pension plans. • Ongoing fiscal challenges in several of the City's special districts mean that expenses must be continuously monitored and managed within the existing revenue limitations imposed by Proposition 218. The General Fund contributes funding to several of these fiscally challenged districts which help in the short-term, however, might not be a long-term solution. 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). For Fiscal Year 2018/19, the City General Fund Budget is $83,944,400 and for the sixth year in a row does not require the use of General Fund reserves. The operating budget represents a $3,186,830, or 3.95%, increase from Fiscal Year 2017/18. The Fiscal Year 2018/19 operating budget for the Fire District is$35,819,290. This is a $805,200, or 2.30%, increase over Fiscal Year 2017/18. The budget is balanced without the use of reserves. The Fire District's budget also continues to redistribute operating expenses in various areas to improve accountability and transparency. The Fiscal Year 2018/19 Library budget is $5,126,230 which represents a decrease of$37,480, or 0.73%, from Fiscal Year 2017/18. Like the Fire District, Library revenues are primarily property tax related. Additional details regarding the City's operating budget and its overall Fiscal Year 2018/19 Adopted Budget can be found on the City's website. Questions or requests for information regarding the Adopted Budget should be directed to the Finance Department. 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, California 91730. 24 CITY OF RANCHO CUCAMONGA STATEMENT OF NET POSITION JUNE 30,2018 Primary Government Governmental Business-Type Activities Activities Total Assets: Cash and investments $ 310,424,875 $ 19,760,653 $ 330,185,528 Receivables: Accounts,net of allowances 4,782,911 1,550,740 6,333,651 Taxes 7,627,987 - 7,627,987 Notes and loans 149,772,541 337,480 150,110,021 Accrued interest 931,031 61,703 992,734 Other loans 1,627,637 - 1,627,637 Grants 502,739 - 502,739 Internal balances 2,543,404 (2,543,404) - Prepaid costs 1,404,478 7,219 1,411,697 Deposits 50,442 - 50,442 Net pension asset 447,914 23,471 471,385 Land held for resale 4,000,000 - 4,000,000 Restricted assets: Cash with fiscal agent 693,549 693,549 Pension rate stabilization program 7,719,889 - 7,719,889 Capital assets, not being depreciated 423,888,190 6,995,012 430,883,202 Capital assets, net of depreciation 395,700,812 26,684,127 422,384,939 Total Assets 1,312,118,399 52,877,001 1,364,995,400 Deferred Outflows of Resources: Deferred OPEB related items 1,054,169 - 1,054,169 Deferred pension related items 29,868,699 946,963 30,815,662 Total Deferred Outflows of Resources 30,922,868 946,963 31,869,831 Liabilities: Accounts payable 14,073,180 975,111 15,048,291 Accrued liabilities 3,447,982 83,414 3,531,396 Unearned revenue 1,349,140 118,626 1,467,766 Deposits payable 61,847 449,278 511,125 Due to other governments 834,179 - 834,179 Due to Successor Agency 305,314 - 305,314 Noncurrent liabilities: Due within one year 6,608,859 - 6,608,859 Due in more than one year 8,361,509 - 8,361,509 Net OPEB liability 291,000 - 291,000 Net pension liability 82,435,718 2,455,896 84,891,614 Total Liabilities 117,768,728 4,082,325 121,851,053 Deferred Inflows of Resources: Deferred pension related items 4,946,395 232,202 5,178,597 Total Deferred Inflows of Resources 4,946,395 232,202 5,178,597 Net Position: Invested in capital assets 819,589,002 33,679,139 853,268,141 Restricted for: Community development projects 174,782,984 - 174,782,984 Public safety 792,458 792,458 Parks and recreation 5,214,608 5,214,608 Fire protection 35,438,209 - 35,438,209 Engineering and public works 60,359,114 - 60,359,114 Community services 6,005,810 - 6,005,810 Capital projects 32,112,849 - 32,112,849 Public benefit-Municipal Utility - 733,900 733,900 Unrestricted 86,031,110 15,096,398 101,127,508 Total Net Position $ 1,220,326,144 $ 49,509,437 $ 1,269,835,581 See Notes to Financial Statements 25 CITY OF RANCHO CUCAMONGA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2018 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government $ 31,792,123 $ 5,211,429 $ 6,000 $ Public safety-police 38,576,433 1,525,700 436,871 - Public safety-fire protection 34,557,791 314,507 27,028 - Public safety-animal center 3,263,155 211,865 - Community development 16,675,413 245,144 931,443 Community services 19,060,265 3,329,478 554,468 - Engineering and public works 31,573,819 5,896,355 6,889,686 16,584,193 Interest on long-term debt 213,912 - - - Total Governmental Activities 175,712,911 16,734,478 8,845,496 16,584,193 Business-Type Activities: Sports Complex 2,851,970 248,828 - - Municipal Utility 8,419,196 12,317,610 90,680 REGIS Connect 104,969 42,930 - Fiber Optic Network 144,924 58,857 588,730 Total Business-Type Activities 11,521,059 12,668,225 - 679,410 Total Primary Government $ 187,233,970 $ 29,402,703 $ 8,845,496 $ 17,263,603 General Revenues: Taxes: Property taxes, levied for general purpose Admissions tax Transient occupancy taxes Sales taxes Franchise taxes Motor vehicle in lieu-unrestricted Use of money and property Other Transfers Total General Revenues and Transfers Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at End of Year See Notes to Financial Statements 26 Net(Expenses)Revenues and Changes in Net Position Primary Government Governmental Business-Type Activities Activities Total $ (26,574,694) $ - $ (26,574,694) (36,613,862) - (36,613,862) (34,216,256) - (34,216,256) (3,051,290) - (3,051,290) (15,498,826) - (15,498,826) (15,176,319) - (15,176,319) (2,203,585) - (2,203,585) (213,912) - (213,912) (133,548,744) - (133,548,744) - (2,603,142) (2,603,142) - 3,989,094 3,989,094 - (62,039) (62,039) - 502,663 502,663 - 1,826,576 1,826,576 (133,548,744) 1,826,576 (131,722,168) 85,409,344 - 85,409,344 6,008 62,195 68,203 3,578,006 - 3,578,006 31,478,294 - 31,478,294 7,997,948 - 7,997,948 93,340 - 93,340 5,781,295 390,833 6,172,128 7,955,074 601,075 8,556,149 (676,159) 676,159 - 141,623,150 1,730,262 143,353,412 8,074,406 3,556,838 11,631,244 1,226,519,377 45,277,984 1,271,797,361 (14,267,639) 674,615 (13,593,024) $ 1,220,326,144 $ 49,509,437 $ 1,269,835,581 See Notes to Financial Statements 27 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2018 Special Revenue Funds Housing Lighting Successor General Districts Agency Fire District Assets: Cash and investments $ 92,441,556 $ 5,792,153 $ 8,397,157 $ 64,886,100 Receivables: Accounts, net of allowances 1,144,610 352,030 168,542 774,121 Taxes 6,847,078 18,441 - 329,145 Notes - - 149,772,541 - Accrued interest 296,339 14,719 28,104 152,624 Otherloans 9,911 - - - Grants 10,176 - - Prepaid costs 312,852 - 245,574 Deposits 20,000 - - - Due from other funds 711,898 - Advances to other funds 16,637,859 - - Land held for resale - - 4,000,000 Restricted assets: Cash and investments with fiscal agents - - - Pension rate stabilization program 2,034,481 - - 5,685,408 Total Assets $ 120,466,760 $ 6,177,343 $ 162,366,344 $ 72,072,972 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 3,219,952 $ 332,968 $ $ 4,224,119 Accrued liabilities 1,802,942 5,883 - 1,111,627 Unearned revenues 7,500 22,173 - - Deposits payable 42,959 - - Due to other governments - Due to other funds - - Due to Successor Agency 305,314 - - Advances from other funds - 12,593,504 - 1,875,699 Total Liabilities 5,378,667 12,954,528 - 7,211,445 Deferred Inflows of Resources: Unavailable revenues 6,000 179,751 26,465,647 - Total Deferred Inflows of Resources 6,000 179,751 26,465,647 - See Notes to Financial Statements 28 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2018 (CONTINUED) Other Total Governmental Governmental Funds Funds Assets: Cash and investments $ 135,625,395 $ 307,142,361 Receivables: Accounts, net of allowances 2,314,488 4,753,791 Taxes 433,323 7,627,987 Notes - 149,772,541 Accrued interest 426,988 918,774 Other loans 1,617,726 1,627,637 Grants 492,563 502,739 Prepaid costs 56,996 615,422 Deposits 30,442 50,442 Due from other funds - 711,898 Advances to other funds - 16,637,859 Land held for resale - 4,000,000 Restricted assets: Cash and investments with fiscal agents 693,549 693,549 Pension rate stabilization program - 7,719,889 Total Assets $ 141,691,470 $ 502,774,889 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 6,115,044 $ 13,892,083 Accrued liabilities 527,530 3,447,982 Unearned revenues 1,319,467 1,349,140 Deposits payable 18,888 61,847 Due to other governments 834,179 834,179 Due to other funds 337,150 337,150 Due to Successor Agency - 305,314 Advances from other funds - 14,469,203 Total Liabilities 9,152,258 34,696,898 Deferred Inflows of Resources: Unavailable revenues 597,817 27,249,215 Total Deferred Inflows of Resources 597,817 27,249,215 See Notes to Financial Statements 29 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2018 Special Revenue Funds Housing Lighting Successor General Districts Agency Fire District Fund Balances: Nonspendable: Prepaid costs 312,852 - - 245,574 Deposits 20,000 - - - Other loans 9,911 - - Advances to other funds 16,637,859 - - Restricted: Community development projects - - 135,900,697 - Public safety-police - - - Parks and recreation - - Engineering and public works - - - Capital improvement projects 544,965 - 2,914,591 Underground utilities - - - Landscape maintenance - - Library services - - Information technology 1,101,334 - - Technology replacement 82,135 - - 23,789 General plan update 1,001,556 - - - Contractual obligation 1,430,211 - - 94,317 PERS rate stabilization 2,134,481 - - 6,000,408 S131186 certified access specialist services 56,875 - - - Committed: Law enforcement 8,372,843 - - - Vehicle and equipment replacement - - - 2,660,213 Working capital 4,197,220 - - 16,889,406 City facilities capital repair 29,101,840 - - Changes in economic circumstances 18,006,176 - 9,128,022 Employee leave payouts 4,072,335 - 3,425,536 Self insurance 7,584,947 - - Fire District facilities capital repair - - 7,250,000 PASIS worker's compensation tail claims - - 941,976 Assigned: Radio system acquisition 550,697 - - Communications - - 1,750,495 City infrastructure 12,146,221 - - Capital projects - - 13,512,116 Sphere of influence issues 1,318,410 - - Animal Center operations 450,354 - Community development projects 1,741,365 - Mobile home park program 152,404 - Fiber master plan 4,000,680 - - Continuing operations 54,422 - 25,084 Unassigned - (6,956,936) - - Total Fund Balances 115,082,093 (6,956,936) 135,900,697 64,861,527 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 120,466,760 $ 6,177,343 $ 162,366,344 $ 72,072,972 See Notes to Financial Statements 30 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2018 (CONTINUED) Other Total Governmental Governmental Funds Funds Fund Balances: Nonspendable: Prepaid costs 56,996 615,422 Deposits 30,442 50,442 Other loans - 9,911 Advances to other funds - 16,637,859 Restricted: Community development projects 11,473,512 147,374,209 Public safety-police 943,598 943,598 Parks and recreation 5,214,608 5,214,608 Engineering and public works 51,057,154 51,057,154 Capital improvement projects 28,653,293 32,112,849 Underground utilities 10,635,041 10,635,041 Landscape maintenance 17,454,036 17,454,036 Library services 6,465,743 6,465,743 Information technology - 1,101,334 Technology replacement - 105,924 General plan update 96,144 1,097,700 Contractual obligation - 1,524,528 PERS rate stabilization - 8,134,889 S131186 certified access specialist services - 56,875 Committed: Law enforcement - 8,372,843 Vehicle and equipment replacement - 2,660,213 Working capital - 21,086,626 City facilities capital repair - 29,101,840 Changes in economic circumstances - 27,134,198 Employee leave payouts - 7,497,871 Self insurance - 7,584,947 Fire District facilities capital repair - 7,250,000 PASIS worker's compensation tail claims - 941,976 Assigned: Radio system acquisition - 550,697 Communications - 1,750,495 City infrastructure - 12,146,221 Capital projects - 13,512,116 Sphere of influence issues - 1,318,410 Animal Center operations - 450,354 Community development projects - 1,741,365 Mobile home park program - 152,404 Fiber master plan - 4,000,680 Continuing operations - 79,506 Unassigned (139,172) (7,096,108) Total Fund Balances 131,941,395 440,828,776 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 141,691,470 $ 502,774,889 See Notes to Financial Statements 31 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 30,2018 Fund balances of governmental funds $ 440,828,776 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. 813,668,941 Deferred outflows related to pension related items are not included in the governmental fund activity: Contributions made after the measurement date $ 8,862,739 Adjustment due to differences in proportions 828,634 Changes in assumptions 16,320,732 Differences between expected and actual experiences 380,689 Differences between actual contributions and the proportionate share of contributions 21,510 Net difference between projected and actual earning on plan investments 3,454,395 29,868,699 Deferred inflows related to pension related items are not included in the governmental fund activity: Changes in assumptions (1,412,513) Differences between expected and actual experiences (3,492,680) Differences between actual contributions and the proportionate share of contributions (41,202) (4,946,395) Deferred outflows related to OPEB related items are not included in the governmental fund activity: Contributions made after the measurement date 998,969 Net difference between projected and actual earning on OPEB plan investments 55,200 1,054,169 Long-term debt,compensated absences and total net pension liability are not included in the governmental fund activity: Advances from Successor Agency (3,953,624) Claims and judgments (3,518,873) Compensated absences (7,497,871) Net OPEB liability (291,000) Net pension liability (82,435,718) (97,697,086) Net pension assets are not available to pay for current-period expenditures and therefore are not reported in the govenmental funds. 447,914 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. 27,249,215 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. 9,851,911 Net Position of Governmental Activities $1,220,326,144 See Notes to Financial Statements 33 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30,2018 Special Revenue Funds Housing Lighting Successor General Districts Agency Fire District Revenues: Taxes $ 70,214,951 $ 2,086,921 $ $ 39,941,379 Licenses and permits 4,377,007 - 16,045 Intergovernmental 500,029 - - Charges for services 3,645,491 - 874 Use of money and property 737,977 (583) 209,221 810,997 Fines and forfeitures 1,536,583 - - 152,382 Contributions 103,644 - Developer participation - - - - Miscellaneous 3,478,005 1,201,202 1,217,536 1,095,475 Total Revenues 84,593,687 3,287,540 1,426,757 42,017,152 Expenditures: Current: General government 14,363,340 15,290,601 - - Public safety-police 37,546,281 - - Public safety-fire protection - - - 32,253,688 Public safety-animal center 3,113,889 - - - Community development 4,979,496 - 254,100 Community services 4,793,457 - - Engineering and public works 11,744,223 - - Capital outlay 3,789,064 - 17,998,576 Debt service: Principal retirement 8,292 - - 2,915 Interest and fiscal charges 17,399 90,223 - 92,020 Total Expenditures 80,355,441 15,380,824 254,100 50,347,199 Excess(Deficiency)of Revenues Over(Under)Expenditures 4,238,246 (12,093,284) 1,172,657 (8,330,047) Other Financing Sources(Uses): Transfers in 1,835,545 455,270 - Transfers out (3,025,210) - - Sale of capital assets 68,196 - 1,917 Total Other Financing Sources (Uses) (1,121,469) 455,270 - 1,917 Net Change in Fund Balances 3,116,777 (11,638,014) 1,172,657 (8,328,130) Fund Balances: Beginning of year 111,965,316 4,681,078 134,728,040 73,189,657 End of Year $ 115,082,093 $ (6,956,936) $ 135,900,697 $ 64,861,527 See Notes to Financial Statements 34 CITY OF RANCHO CUCAMONGA STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30,2018 Other Total Governmental Governmental Funds Funds Revenues: Taxes $ 16,226,349 $ 128,469,600 Licenses and permits 246,167 4,639,219 Intergovernmental 12,460,705 12,960,734 Charges for services 3,594,052 7,240,417 Use of money and property 1,762,216 3,519,828 Fines and forfeitures - 1,688,965 Contributions 471,479 575,123 Developer participation 9,924,665 9,924,665 Miscellaneous 2,170,413 9,162,631 Total Revenues 46,856,046 178,181,182 Expenditures: Current: General government 910,970 30,564,911 Public safety-police 353,252 37,899,533 Public safety-fire protection 27,028 32,280,716 Public safety-animal center - 3,113,889 Community development 10,797,251 16,030,847 Community services 9,292,769 14,086,226 Engineering and public works 7,180,879 18,925,102 Capital outlay 19,970,317 41,757,957 Debt service: Principal retirement 7,552 18,759 Interest and fiscal charges 105 199,747 Total Expenditures 48,540,123 194,877,687 Excess(Deficiency)of Revenues Over(Under)Expenditures (1,684,077) (16,696,505) Other Financing Sources(Uses): Transfers in 479,584 2,770,399 Transfers out (604,288) (3,629,498) Sale of capital assets - 70,113 Total Other Financing Sources (Uses) (124,704) (788,986) Net Change in Fund Balances (1,808,781) (17,485,491) Fund Balances: Beginning of year 133,750,176 458,314,267 End of Year $ 131,941,395 $ 440,828,776 See Notes to Financial Statements 35 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 30,2018 Net change in fund balances-total governmental funds $ (17,485,491) 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 $ 41,757,957 Depreciation (16,106,527) Contributed capital assets 3,653,103 Loss on disposal of capital assets (1,580,494) 27,724,039 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 18,759 Change in claims and judgments payable 895,610 914,369 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. 105,983 OPEB obligation 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. 553,169 Pension obligation expenses are expenditures in the governmental funds, but reduce the Net Pension Liability in the statement of net position. (4,876,862) Revenues reported as unavailable revenue in the governmental funds are recognized in the statement of activities.These are included in the intergovernmental revenues in the governmental fund activity. 2,602,715 Internal service funds are used by management to charge the costs of certain activities, such as equipment management,to individual funds.The assets and liabilities of the internal service funds are added to the statement of net position. (1,463,516) Change in Net Position of Governmental Activities $ 8,074,406 See Notes to Financial Statements 36 CITY OF RANCHO CUCAMONGA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30,2018 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 $ 100,870 $19,659,783 $ - $19,760,653 $ 3,282,514 Receivables: Accounts 51,154 1,494,915 4,671 1,550,740 29,120 Notes and loans - 337,480 - 337,480 - Accrued interest - 61,703 - 61,703 12,257 Prepaid costs - 7,219 - 7,219 789,056 Net pension asset 14,987 8,484 - 23,471 - Total Current Assets 167,011 21,569,584 4,671 21,741,266 4,112,947 Noncurrent: Capital assets-net of accumulated depreciation 14,397,627 13,782,724 5,498,788 33,679,139 5,920,061 Total Noncurrent Assets 14,397,627 13,782,724 5,498,788 33,679,139 5,920,061 Total Assets 14,564,638 35,352,308 5,503,459 55,420,405 10,033,008 Deferred Outflows of Resources: Deferred pension related items 667,607 279,356 - 946,963 - Total Deferred Outflows of Resources 667,607 279,356 - 946,963 - Total Assets and Deferred Outflows of Resources $15,232,245 $35,631,664 $5,503,459 $56,367,368 $ 10,033,008 Liabilities, Deferred Inflows of Resources and Net Position: Liabilities: Current: Accounts payable $ 53,509 $ 857,483 $ 64,119 $ 975,111 $ 181,097 Accrued liabilities 59,385 24,029 - 83,414 - Unearned revenues 118,626 - - 118,626 - Deposits payable - 449,278 - 449,278 - Due to other funds - - 374,748 374,748 - Total Current Liabilities 231,520 1,330,790 438,867 2,001,177 181,097 Noncurrent: Advances from other funds 2,168,656 - - 2,168,656 - Net pension liability 1,756,986 698,910 - 2,455,896 Total Noncurrent Liabilities 3,925,642 698,910 - 4,624,552 - Total Liabilities 4,157,162 2,029,700 438,867 6,625,729 181,097 Deferred Inflows of Resources: Deferred pension related items 165,809 66,393 - 232,202 - Total Deferred Inflows of Resources 165,809 66,393 - 232,202 - Net Position: Invested in capital assets 14,397,627 13,782,724 5,498,788 33,679,139 5,920,061 Restricted for public benefit-Municipal Utility - 733,900 - 733,900 - Unrestricted (3,488,353) 19,018,947 (434,196) 15,096,398 3,931,850 Total Net Position 10,909,274 33,535,571 5,064,592 49,509,437 9,851,911 Total Liabilities, Deferred Inflows of Resources and Net Position $15,232,245 $35,631,664 $5,503,459 $56,367,368 $ 10,033,008 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 30,2018 Business-Type Activities-Enterprise Funds Major Funds Governmental Other Activities- Sports Municipal Enterprise Internal Complex Utility Funds Total Service Funds Operating Revenues: Sales and service charges $ 248,828 $ 12,317,610 $ 101,787 $ 12,668,225 $ 349,180 Rent 327,715 - - 327,715 - Miscellaneous 71,791 524,334 4,950 601,075 - Total Operating Revenues 648,334 12,841,944 106,737 13,597,015 349,180 Operating Expenses: Salaries and benefits 1,551,572 611,733 - 2,163,305 - Maintenance and operations 534,010 6,264,107 98,564 6,896,681 500,978 Contractual services 233,873 691,331 6,405 931,609 225,041 Depreciation expense 507,744 852,025 144,924 1,504,693 1,281,928 Total Operating Expenses 2,827,199 8,419,196 249,893 11,496,288 2,007,947 Operating Income(Loss) (2,178,865) 4,422,748 (143,156) 2,100,727 (1,658,767) Nonoperating Revenues(Expenses): Admissions tax 62,195 - - 62,195 - Interest revenue 3,657 62,564 - 66,221 26,476 Interest expense (24,771) - (3,103) (27,874) (14,165) Total Nonoperating Revenues(Expenses) 41,081 62,564 (3,103) 100,542 12,311 Income(Loss)Before Contributions and Transfers (2,137,784) 4,485,312 (146,259) 2,201,269 (1,646,456) Capital Contributions - 90,680 588,730 679,410 - Transfers in 1,917,299 - - 1,917,299 182,940 Transfers out - (1,241,140) - (1,241,140) - Changes in Net Position (220,485) 3,334,852 442,471 3,556,838 (1,463,516) Net Position: Beginning of Year, as previously reported 11,129,759 29,526,104 4,622,121 45,277,984 11,315,427 Restatements - 674,615 - 674,615 - Beginning of Fiscal Year, as restated 11,129,759 30,200,719 4,622,121 45,952,599 11,315,427 Changes in Net Position (220,485) 3,334,852 442,471 3,556,838 (1,463,516) End of Fiscal Year $ 10,909,274 $ 33,535,571 $ 5,064,592 $ 49,509,437 $ 9,851,911 See Notes to Financial Statements 38 CITY OF RANCHO CUCAMONGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2018 Business-Type Activities-Enterprise Funds Major Funds Governmental Other Activities- Sports Municipal Enterprise Internal Complex Utility Funds Total Service Funds Cash Flows from Operating Activities: Cash received from customers and users $ 369,363 $ 12,331,369 $ 136,356 $12,837,088 $ 349,080 Cash paid to suppliers for goods and services (1,036,308) (6,924,968) (147,468) (8,108,744) (1,371,739) Cash paid to employees for services (1,449,403) (570,034) - (2,019,437) Cash received from(payments to)others 71,791 524,334 413,921 1,010,046 Net Cash Provided(Used)by Operating Activities (2,044,557) 5,360,701 402,809 3,718,953 (1,022,659) Cash Flows from Non-Capital Financing Activities: Cash transfers in 1,917,299 - - 1,917,299 182,940 Cash transfers out - (1,241,140) - (1,241,140) - Admissions tax received 62,195 - 62,195 - Net Cash Provided(Used)by Non-Capital Financing Activities 1,979,494 (1,241,140) - 738,354 182,940 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (29,107) (1,140,580) (494,250) (1,663,937) (781,433) Principal paid on capital debt (467,470) Interest paid on capital debt - (14,165) Interest paid on interfund financing (24,771) (24,771) Advance from other funds (887,710) - - (887,710) Net Cash Provided(Used)by Capital and Related Financing Activities (941,588) (1,140,580) (494,250) (2,576,418) (1,263,068) Cash Flows from Investing Activities: Interest received 3,657 33,310 (3,016) 33,951 24,403 Net Cash Provided(Used)by Investing Activities 3,657 33,310 (3,016) 33,951 24,403 Net Increase(Decrease)in Cash and Cash Equivalents (1,002,994) 3,012,291 (94,457) 1,914,840 (2,078,384) Cash and Cash Equivalents at Beginning of Year 1,103,864 16,647,492 94,457 17,845,813 5,360,898 Cash and Cash Equivalents at End of Year $ 100,870 $ 19,659,783 $ - $19,760,653 $ 3,282,514 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ (2,178,865) $ 4,422,748 $ (143,156) $ 2,100,727 $ (1,658,767) Adjustments to reconcile operating income(loss) net cash provided(used)by operating activities: Depreciation 507,744 852,025 144,924 1,504,693 1,281,928 (Increase)decrease in accounts receivable (9,556) 41,423 34,569 66,436 (100) (Increase)decrease in deferred outflows from pensions (101,983) (35,744) (137,727) - (Increase)decrease in notes and loans receivable (66,879) - (66,879) (Increase)decrease in prepaid expense (18) (18) (774,151) (Increase)decrease in net pension asset (14,987) (8,484) - (23,471) - Increase(decrease)in accounts payable (272,496) 27,787 63,810 (180,899) 128,431 Increase(decrease)in accrued liabilities 4,071 2,701 - 6,772 - Increase(decrease)in unearned revenues (197,624) - - (197,624) Increase(decrease)in deposits payable 39,215 - 39,215 Increase(decrease)in due to other funds - - 302,662 302,662 Increase(decrease)in net pension liability 241,437 94,875 - 336,312 Increase(decrease)in deferred inflows from pensions (22,298) (8,948) - (31,246) - Total Adjustments 134,308 937,953 545,965 1,618,226 636,108 Net Cash Provided(Used)by Operating Activities $ (2,044,557) $ 5,360,701 $ 402,809 $ 3,718,953 $ (1,022,659) Non-Cash Investing,Capital,and Financing Activities: Donated infrastructure $ - $ 90,680 $ 588,730 $ 679,410 $ See Notes to Financial Statements 39 CITY OF RANCHO CUCAMONGA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30,2018 Private- Purpose Trust Fund Successor Agency Agency of the Funds Former RDA Assets: Cash and investments $ 21,311,076 $ 23,143,142 Receivables: Accounts 259,899 - Taxes 85,687 - Accrued interest 27,451 - Developer loans - 11,091,413 Prepaid bond insurance 1,587,518 Due from City 305,314 Advances to City - 3,953,624 Restricted assets: Cash and investments with fiscal agents 4,036,007 1,996 Total Assets $ 25,720,120 40,083,007 Deferred Outflows of Resources: Deferred charge on refunding 2,561,202 Total Deferred Outflows of Resources 2,561,202 Liabilities: Accounts payable $ 114,666 - Accrued liabilities 32,235 - Accrued interest - 4,820,520 Deposits payable 8,222,958 - Payable to trustee 17,324,556 - Due to external parties/other agencies 25,705 - Long-term liabilities: Due in one year - 11,904,475 Due in more than one year - 296,142,139 Total Liabilities $ 25,720,120 312,867,134 Deferred Inflows of Resources: Deferred charges on refunding 1,926,027 Total Deferred Inflows or Resources 1,926,027 Net Position: Held in trust for other purposes (272,148,952) Total Net Position $ (272,148,952) See Notes to Financial Statements 40 CITY OF RANCHO CUCAMONGA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30,2018 Private- Purpose Trust Fund Successor Agency of the Former RDA Additions: Taxes $ 28,477,208 Interest and change in fair value of investments 56,578 Total Additions 28,533,786 Deductions: Contractual services 1,200,953 Interest expense 13,097,728 Contributions to City 863,945 Total Deductions 15,162,626 Changes in Net Position 13,371,160 Net Position: Beginning of year (285,520,112) Net Position-End of the Year $ (272,148,952) See Notes to Financial Statements 41 THIS PAGE INTENTIONALLY LEFT BLANK 42 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of Entity The City of Rancho Cucamonga was incorporated on November 30, 1977, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City operates under a council-manager form of government and provides its citizens with a full range of municipal services. It is governed by an elected five-member board. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Rancho Cucamonga (the City) and its component units, entities for which the City is considered financially accountable. The inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga is based on the provisions of GASB Statement No. 14 and amended with GASB Statement No. 61. The blended component units discussed below, although legally separate entities, are in substance part of the government operation and so data from these component units has been combined herein. The following criteria were used in the determination of the blended component units: 1. The members of the City Council also act as the governing body of the Rancho Cucamonga Public Improvement Corporation (the Improvement Corporation), the Rancho Cucamonga Fire Protection District (the Fire District), the Rancho Cucamonga Library (the Library), and the Rancho Cucamonga Public Financing Authority (the Financing Authority). 2. The Improvement Corporation, the Fire District, the Library, and the Financing Authority are managed by employees of the City. A portion of the City's general overhead costs is allocated to the Fire District and the Library. 3. The City, the Improvement Corporation, the Fire District, the Library, and the Financing Authority are financially interdependent. They provide financial benefit/burden to the City. Blended Component Units The Improvement Corporation was incorporated on November 14, 1988, under the Non-Profit Public Benefit Corporation Law of the State of California. The 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. Separate financial statements are not available for the Improvement Corporation. The Fire 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. The Fire District still operates as a separate special district; however, now it is under the control of the City 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, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The Library was part of the San Bernardino County Library System in which the City 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 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, 2018 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 180 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 Lighting Districts Fund accounts for the costs associated with providing street lights throughout the City. Revenues are provided by special assessments levied against the benefiting property owners. • The Housing Successor Agency Fund accounts for the assets of the former Redevelopment Agency's Low and Moderate Income Housing Fund. The source of revenue in the fund is primarily from interest received from the notes and loans receivable. • The Fire District Fund accounts for the revenue and disbursement of funds received by the Rancho Cucamonga Fire Protection District in the course of that agency's fire protection services. The source of revenue in the fund is primarily from property taxes. The City reports the following major proprietary funds: • The Sports Complex Fund accounts for personnel and operating costs directly associated with the operation of the baseball facility, which is the home of the Rancho Cucamonga Quakes. 45 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) • The Municipal Utility Fund accounts for the costs of labor and materials used in the operation, maintenance, construction and consumption of electric services to certain residential, commercial, and 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. 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. 46 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity Cash and Investments All cash and investments, except those that are held by fiscal agents or through a trust, 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. 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. 47 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Years Building improvements 10-50 Improvements other than buildings 10-40 Computer equipment and software 3-15 Equipment and vehicles 3-20 Furniture and fixtures 3-20 Infrastructure 10-75 Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position 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 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 related to pensions arising from certain changes in the net pension liability, net pension asset, and net OPEB liability. In addition to liabilities, the statement of net 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 so will not be recognized as an inflow of resources (revenue) until that time. The government has several items that qualify for reporting in this category: 48 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 1. Unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues for revenues that are measurable but are not collected within 60 days of the end of the current fiscal period or 180 days for sales tax revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 2. Pension and OPEB related deferred inflows, is reported only on the Statement of Net Position. The government reports deferred inflows of resources related to pensions arising from certain changes in the net pension liability, net pension asset, or net OPEB liability. Deferred inflows and outflows of resources related to changes in in the net pension liability, net pension asset, and net OPEB liability are recognized systematically over time. Amounts are first recognized in the year the change occurs. The remaining amounts are to be recognized in future period(s). The recognition period differs depending on the source of the change, and currently are amortized over 5 years or the average remaining service life time. Pensions For purposes of measuring the net pension liability, net pension asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. GASB Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used. Valuation Date June 30, 2016 Measurement Date June 30, 2017 Measurement Period July 1, 2016 to June 30, 2017 49 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Other Postemployment Benefits (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB Plan, the assets of which are held by California Employers' Retiree Benefit Trust (CERBT), an agent multiple-employer defined benefit healthcare plan administered by the California Public Employees' Retirement System (CalPERS), and additions to/deductions from the OPEB Plan's fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. GASB Statement No. 75 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2016 Measurement Date June 30, 2017 Measurement Period July 1, 2016 to June 30, 2017 Accrued Employee Benefits The City's policy permits employees to accumulate earned but unused vacation and sick pay benefits. The total amount of liability for unused vacation and sick pay benefits is accrued when incurred in the government-wide financial statements. The City utilizes the General Fund and the Fire District Special Revenue Fund in the governmental fund financial statements to account for the short-term portion of its liability. The short-term portion is the unused reimbursable leave still outstanding following an employee's resignation or retirement. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Fire District employees cannot accrue more than one and one-half times their regular annual entitlement. Sick leave is payable when an employee is unable to work because of illness. For City employees, those who terminate their employment after five years of continuous service and have at least 50% of five years sick leave accrued on the books upon termination may be paid for 120 hours of the accrued leave. For Fire District employees, sick leave may be accumulated indefinitely or an employee with ten or more years of service is eligible to convert unused sick leave to vacation in accordance with the following and with any remainder of hours to still remain unused sick time: 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 50 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Upon service retirement of a public safety employee, the option exists to sell back up to one-half of total accumulated sick time or have the time credited toward service in accordance with the Public Retirement Law. All unused sick leave is forfeited upon termination, other than for normal retirement. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance cost, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Balance Fund balance is essentially the difference between the assets, liabilities, and deferred inflows reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts can be spent. • Non-spendable fund balance (inherently non-spendable) • Restricted fund balance (externally enforceable limitations on use) • Committed fund balance (self-imposed limitations on use) •Assigned fund balance (limitation resulting from intended use) • Unassigned fund balance (residual net resources) The General Fund is the only fund that can report a positive unassigned fund balance amount. In governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to these purposes, it may be necessary to report a negative unassigned fund balance in that fund. 51 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The City Council, as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by the adoption of a resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently. Fund balance commitments were as follows: Changes in Economic Circumstances The City's General Fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the City General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for changes in economic circumstances is established at a goal of a nine month reserve, or 75% of the Fire District's operating budget for the upcoming fiscal year. 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. Working Capital The City's General Fund balance committed for Working Capital is established at a goal of a minimum of 5% of the City's General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for Working Capital is established at a goal of a minimum of 50% of the District's operating budget for the upcoming fiscal year. Self-Insurance The City's General Fund balance and the Fire District's fund balance committed for payment of 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. 52 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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." 53 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted — net position to have been depleted before unrestricted—net position is applied. Property Tax Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31. Functional Classifications Expenditures of the governmental funds are classified by function. Functional classifications are defined as follows: • General Government includes legislative activities, City Clerk, City Attorney, City Manager as well as management or supportive services across more than one functional area. • Public Safety- Police includes those activities which involve police protection. • Public Safety- Fire Protection includes activities of the Fire District which involve the protection of people and property from fire as well as emergency preparedness. • Public Safety -Animal Center includes those activities which involve animal care and services. • Community Development includes those activities which involve planning and economic development, 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, 2018 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, 2018: General Fund $ 2,029,598 Lighting Districts 238,371 Fire District 3,033,992 Other Governmental Funds 10,186,536 b. Deficit Fund Balances or Net Position The Lighting Districts Fund has a deficit fund balance of $6,956,936 at June 30, 2018. The deficit fund balance will be eliminated by the repayment of the interfund advance from the General Fund described in Note 6. The following nonmajor funds have a deficit fund balance at June 30, 2018: Special Revenue Funds: Energy Efficient&Conservation Block Grant $ 96 Senior Outreach Grant 5,267 Safe Routes to School Program 74,583 Foothill Blvd. Maintenance 1,433 Public Resources Grants 14,353 Federal Grant Fund-Dreier 177 Emergency Management Performance Grant 28 Homeland Security 2,107 Capital Projects Funds: Assessment District 86-2 41,128 Other Enterprise Funds: REGIS Connect 25,225 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, 2018 III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2018, cash and investments were reported in the accompanying financial statements as follows: Governmental activities $ 318,838,313 Business-type activities 19,760,653 Fiduciary funds 48,492,221 Total Cash and Investments $ 387,091,187 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 or funds held in a trust. 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 and through a trust are credited directly to the related fund. Deposits At June 30, 2018, the carrying amount of the City's deposits was $32,321,868 and the bank balance was $33,242,333. The $920,465 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, 2018 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 • Supranational Securities 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, 2018, 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, 2018. All securities were investment grade and were legal under State and City law. As of June 30, 2018, 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, 2018, the City's deposits (bank balances) were insured by the FDIC up to $250,000 and the remaining balances were collateralized under California Law. As of June 30, 2018, the cash and investments held by Bond Trustee are uninsured and uncollateralized. 57 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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, 2018, 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 13.22% Federal Home Loan Bank 15.14% Federal Home Loan Mortgage Corp. 17.01% Federal National Mortgage Association 15.07% 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, 2018, the City had the following investments and original maturities: Investment Maturities (in Years) 6 months 6 months to 1 year to 3 Years to or less 1 year 3 years 5 years Fair Value Investments: Local Agency Investment Fund $ 70,807,503 $ - $ - $ - $ 70,807,503 Federal Governmental Agencies Federal Farm Credit Bank - - 29,935,383 16,948,706 46,884,089 Federal Home Loan Bank - 9,777,285 32,771,488 11,155,169 53,703,942 Federal Home Loan Mortgage Corp. 4,982,385 5,938,086 28,385,355 21,049,241 60,355,067 Federal National Mortgage Assoc. - 5,947,566 42,233,065 5,294,718 53,475,349 Municipal Bonds 3,768,972 199,564 5,292,849 - 9,261,385 Corporate Bonds 4,893,980 - 8,370,557 2,898,747 16,163,284 Certificate of Deposit 245,000 - 980,000 - 1,225,000 US Treasury 1,591,938 - 13,799,979 3,460,352 18,852,269 Supranational - - 4,431,645 4,374,108 8,805,753 Money Market 2,784,237 - - - 2,784,237 Restricted Investments: Mutual Fund 7,719,889 - - - 7,719,889 Investments with Fiscal Agents: Money Market Funds 4,731,552 - - - 4,731,552 $ 101,525,456 $ 21,862,501 $ 166,200,321 $ 65,181,041 $ 354,769,319 58 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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, 2018: Level Investments by fair value level Totals 1 2 3 Local Agency Investment Fund $ 70,807,503 $ 51,689,477 $ 19,118,026 $ - Federal Governmental Agencies Federal Farm Credit Bank 46,884,089 46,884,089 - - Federal Home Loan Bank 53,703,942 53,703,942 - - Federal Home Loan Mortgage Corporation 60,355,067 60,355,067 - - Federal National Mortgage Association 53,475,349 53,475,349 - - Municipal Bonds 9,261,385 9,261,385 - - Corporate Bonds 16,163,284 9,809,260 6,354,024 - Certificate of Deposit 1,225,000 1,225,000 - US Treasury 18,852,269 18,852,269 - Supranational 8,805,753 - 8,805,753 - Money Market 2,784,237 2,784,237 - Restricted Investments Mutual Fund 7,719,889 - 7,719,889 - Totals 350,037,767 $ 308,040,075 $ 41,997,692 $ - Investments measured at amortized cost Cash with Fiscal Agents Money Market Funds 4,731,552 Total Investments $ 354,769,319 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, 2018: Governmental activities 1. In January 1997, the former Rancho Cucamonga Redevelopment Agency (the Agency) entered into an agreement to loan Villa Pacifica Associates, a California Limited Partnership, up to $3,090,000 to develop senior rental housing for low and moderate income households. The term of the loan is 40 years, with simple interest accruing at 3% per annum on the outstanding principal balance. Payments of principal and interest on the loan are due and payable only when there is available annual cash flow from the development. This payment is 50% of the net annual cash flow. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2018, the outstanding balance amounts to $2,647,010, including accrued interest of $12,990. Accrued interest is offset by deferred revenue. 59 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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, 2018, the advances paid against this line of credit amount to $40,457,658 and accrued interest amounts to $3,511,877 for a total of $43,969,535. 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, 2018, advances paid against this line of credit amounts to $21,638,113 and accrued interest amounts to $4,941,489 for a total balance of $26,579,602. 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, 2018, the advances paid against this line of credit amounted to $9,000,000 and accrued interest amounts to $3,063,008 for a total of $12,063,008. Accrued interest is offset by deferred revenue. 60 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 4: Notes and Loans Receivables (Continued) 5. On March 9, 2006, the Agency entered into a loan agreement with The Southern California Housing Development Corporation for the acquisition, construction and operation of affordable housing apartments, referred to as the Rancho Verde Expansion project, which will increase the supply of very-low, low and moderate income households. This loan is a line of credit not-to-exceed $6,500,000 with simple interest accruing at 1.5% per annum until June 27, 2035, and 2% per annum thereafter and payable without demand or notice on June 27, 2060. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2018, the advances paid against this line of credit amounted to $6,499,910 and accrued interest amounts to $963,913 for a total of $7,463,823. Accrued interest is offset by deferred revenue. 6. On December 1, 2001, the Agency entered into a residual receipts promissory note loan agreement in the form of a line of credit not-to-exceed $4,000,000 with Malvern Housing Partners, L.P. and Southern California Housing Development Corporation for the acquisition, construction and operation of a 49-unit senior multifamily apartment project, known as Heritage Pointe Senior Apartments. A portion of the necessary funding was provided from proceeds of a $4,000,000 bond issue by Southern California Housing Development Corporation. Funding provided by the Agency was in the form of semi-annual principal payments toward these bonds from the Agency's low and moderate income housing fund. As advances were made by the Agency, beginning April 1, 2003, these amounts were added to and became the principal balance of this Residual Receipts Note, and are accruing simple interest at 1% per annum from the date of payment through December 2056. Annual payments of principal and accrued interest shall not commence until the operation of the project has generated residual receipts. On December 5, 2007, the residual receipts promissory note was amended and restated in connection with the refunding of the Southern California Housing Development Corporation's bond with the proceed of the Agency Housing Set-Aside Tax Allocation Bonds, Series 2007A and Series 2007B. All residual receipts in excess of fifteen percent of the gross operating income of the project shall be paid to the Agency annually. All principal and accrued interest at the simple interest rate of 1% per annum shall be due and payable in April 2056. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. As of June 30, 2018, the advances paid against this line of credit amounted to $2,274,871 and accrued interest amounts to $21,814, for a total of $2,296,685. 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, 2018, the advances paid against this line of credit amounted to $25,868,857, and accrued interest amounts to $5,272,573, for a total of$31,141,430. 61 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 4: Notes and Loans Receivables (Continued) 8. On September 26, 1994, the Agency entered into a Disposition and Development Agreement (DDA) and loan agreement (as modified on March 22, 1996) for $5,929,181 with North Town Housing Partners for the acquisition of the 88-unit multifamily rental Villa Del Norte housing project for low and moderate income households. Payments of principal and interest on the loan are due and payable only to the extent that net annual cash flow from the development is available. Upon dissolution of the Agency, the loan receivable was transferred to the Housing Successor Agency of the City. On October 9, 2014, the Loan was modified as a result of a refinancing of the project in order to provide funding for significant rehabilitation improvements to the development. As a result of the refinancing, the term of the Loan and the affordability covenant for the affordable units was extended by 55 years beginning September 1, 2014. The term of the Loan will now terminate on September 1, 2069. The note carries the same interest rate of 3% and the original principal amount of $5,929,181 remains the same. As of June 30, 2018, the outstanding balance amounts to $10,155,307, including accrued interest of $4,226,126. 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, 2018, the outstanding balance amounts to $4,348,529, including accrued interest of$74,129. Accrued interest is offset by deferred revenue. 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 II. 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. 62 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 4: Notes and Loans Receivables (Continued) 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, 2018, the advances paid against this line of credit amounted to $5,683,821 of this Promissory Note Secured by Deed of Trust ("Note") (representing the $2,880,000 purchase money loan, $42,913 predevelopment loan, and $2,760,908 of the construction loan described above) and accrued interest amount to $196,983, for a total amount of$5,880,804. 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, 2018, the outstanding balance amounts to $3,226,808 with no interest due. Total notes and loans receivables for governmental activities at June 30, 2018, including accrued interest of$22,284,901, amounted to$149,772,541. Business-type activities 12. In October 2015, the City entered into an unsecured promissory note for the costs to construct an electric utility line extension related to the development of a hotel on Haven Avenue. The costs to construct the electric utility line extension amounted to $337,480. The note accrues simple interest at 1.46% per month (17.52% per annum) beginning September 1, 2018 and is fully due and payable on February 1, 2022. Outstanding principal may be prepaid in whole or in part at any time. Principal may be partially reduced on February 1 of each year based on average hotel occupancy for the preceding calendar year exceeding thresholds established in the note. As of June 30, 2018, the outstanding balance amounts to $337,480. Total notes and loans receivables for the business-type activities at June 30, 2018, amounted to $337,480. 63 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 5: Capital Assets Governmental activities capital assets for the year ended June 30, 2018, was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental Activities: Capital assets,not being depreciated: Land $ 93,209,716 $ $ (273,181) $ $ 92,936,535 Right of way 237,064,679 (51,912) 237,012,767 Construction-in-progress 64,002,529 41,575,747 (11,639,388) 93,938,888 Total Capital Assets, Not Being Depreciated 394,276,924 41,575,747 (325,093) (11,639,388) 423,888,190 Capital assets,being depreciated: Building improvements 171,334,909 - 1,957,584 173,292,493 Improvement other than buildings 38,979,398 13,260 3,765,193 42,757,851 Equipment and vehicles 47,361,200 906,584 (257,783) 872,019 48,882,020 Furniture and fixtures 3,760,609 - - 3,760,609 Infrastructure 465,643,035 3,726,902 (3,414,480) 5,044,592 471,000,049 Intangible 3,328,862 - - 3,328,862 Total Capital Assets, Being Depreciated 730,408,013 4,646,746 (3,672,263) 11,639,388 743,021,884 Less accumulated depreciation: Building improvements 54,744,790 4,802,380 - 59,547,170 Improvement other than buildings 13,699,034 1,861,480 15,560,514 Equipment and vehicles 36,727,746 2,385,192 (257,783) 38,855,155 Furniture and fixtures 3,123,857 147,889 3,271,746 Infrastructure 221,909,782 7,932,316 (2,159,079) 227,683,019 Intangible 2,144,270 259,198 2,403,468 Total Accumulated Depreciation 332,349,479 17,388,455 (2,416,862) 347,321,072 Total Capital Assets, Being Depreciated,Net 398,058,534 (12,741,709) (1,255,401) 11,639,388 395,700,812 Governmental Activities Capital Assets,Net $ 792,335,458 $ 28,834,038 $ (1,580,494) $ - $ 819,589,002 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government $ 356,531 Public safety -police 676,900 Public safety -fire protection 1,360,911 Engineering and public works 9,757,891 Community development 67,696 Community services 3,886,598 Internal service 1,281,928 Total Governmental Activities $ 17,388,455 64 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 5: Capital Assets (Continued) Business-type activities capital assets for the year ended June 30, 2018, was as follows: Beginning Adjusted Ending Balance Adjustments" Balance Increases Decreases Transfers Balance Business-Type Activities: Capital assets, not being depreciated: Land $ 5,451,015 $ $ 5,451,015 $ - $ $ - $ 5,451,015 Construction-in-progress 3,015,907 3,015,907 1,340,730 - (2,812,640) 1,543,997 Total Capital Assets, Not Being Depreciated 8,466,922 8,466,922 1,340,730 - (2,812,640) 6,995,012 Capital assets,being depreciated: Building improvements 17,225,973 17,225,973 - - 17,225,973 Improvement other than buildings 3,858,277 3,858,277 - 2,509,853 6,368,130 Equipment and vehicles 623,148 623,148 - - 623,148 Furniture and fixtures 6,004 6,004 - - 6,004 Infrastructure 25,975,307 370,046 26,345,353 1,071,598 - 302,787 27,719,738 Intangible 25,858 - 25,858 - - 25,858 Total Capital Assets, Being Depreciated 47,714,567 370,046 48,084,613 1,071,598 - 2,812,640 51,968,851 Less accumulated depreciation: Building improvements 10,338,852 - 10,338,852 431,198 - - 10,770,050 Improvement other than buildings 3,800,895 3,800,895 76,546 - - 3,877,441 Equipment and vehicles 502,876 502,876 13,393 - - 516,269 Furniture and fixtures 6,004 6,004 - - 6,004 Infrastructure 9,072,635 32,911 9,105,546 983,556 - - 10,089,102 Intangible 25,858 - 25,858 - - 25,858 Total Accumulated Depreciation 23,747,120 32,911 23,780,031 1,504,693 - - 25,284,724 Total Capital Assets, Being Depreciated, Net 23,967,447 337,135 24,304,582 (433,095) - 2,812,640 26,684,127 Business-Type Activities Capital Assets, Net $32,434,369 $ 337,135 $32,771,504 $ 907,635 $ - $ - $33,679,139 * Adjustments of$337,135 were the result of contributed capital not capitalized in prior years as described in Note 15. Depreciation expense was charged to functions/programs of the primary government as follows: Business-Type Activities: Sports Complex $ 507,744 Municipal Utility 852,025 Other Enterprise Funds 144,924 Total Business-Type Activities $ 1,504,693 65 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 6: Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2018, 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 $ 337,150 $ 374,748 $ 711,898 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, 2018. Advances To/From Other Funds Advances from Other Funds Lighting Fire Sports Funds Districts District Complex Total Advances to Other Funds: General Fund $ 12,593,504 $ 1,875,699 $ 2,168,656 $ 16,637,859 On August 16, 2017, the City Council authorized an advance of $14,400,340 from the General Fund to the Lighting Districts Fund to provide funding for the purchase and acquisition of Southern California Edison owned streetlights and the installation of LED lighting to streetlights, intersections, and bridges, and other one-time costs necessary to inventory the streetlights. The advance was completed in phases and bears interest at 1.0% on the outstanding balance. The advance is payable in monthly installments and the final payment will occur in August 2037. At June 30, 2018, the outstanding balance amounted to $12,593,504. On June 21, 2012, the General Fund advanced $4,556,198 to the Fire District to provide funding for the prepayment of the Fire District's side fund liability with CalPERS. The advance bears interest at 4.5% and is payable in monthly installments. The final payment will occur in June 2020. At June 30, 2018, the outstanding balance amounted to $1,875,699. 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. The final payment will occur in February 2035. At June 30, 2018, the outstanding balance amounted to $2,168,656. 66 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 6: Interfund Receivable, Payable and Transfers (Continued) Interfund Transfers Transfers Out General Municipal Nonmajor Funds Fund Utility Governmental Total Transfers In General Fund $ - $ 1,241,140 $ 594,405 $ 1,835,545 Lighting Districts 455,270 - - 455,270 Sports Complex 1,917,299 - 1,917,299 Internal Service Funds 182,940 - - 182,940 Nonmajor Governmental 469,701 - 9,883 479,584 $ 3,025,210 $ 1,241,140 $ 604,288 $ 4,870,638 The General Fund transferred $455,270, $1,917,299, $182,940, and $469,360 to the Lighting Districts Fund, Sports Complex Fund, the Internal Service Funds and Nonmajor Funds, respectively, to cover the budgeted amounts. The Municipal Utility transferred $1,241,140 to the General Fund to cover the cost of operations. Nonmajor Funds transferred $594,405 to the General Fund and $9,883 to Other Nonmajor Funds for the purpose of providing financial resources to cover expenditures and to reimburse for funds temporarily provided in a prior year. 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, 2018: Beginning Ending Due Within Balance Additions Repayments Balance One Year Capital Leases: Government Capital Corp. $ 410,710 $ - $ 410,710 $ $ Xerox- Internal Service 56,760 - 56,760 Xerox-Governmental Funds 18,759 - 18,759 - Total Capital Leases 486,229 - 486,229 Advances from Successor Agency 3,953,624 - - 3,953,624 Claims and judgments payable 4,414,483 563,504 1,459,114 3,518,873 1,137,859 Accrued employee benefits 7,603,854 5,443,569 5,549,552 7,497,871 5,471,000 Total $ 16,458,190 $ 6,007,073 $ 7,494,895 $ 14,970,368 $ 6,608,859 67 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 7: Long-Term Debt Obligations (Continued) A description of individual components of long-term debt outstanding as of June 30, 2018, is as follows: Capital Leases Payable On December 19, 2012, the City entered into a capital lease agreement with Dell Financial Services to acquire a Dell Blade Server Enclosure for $313,981. The agreement requires annual payments of $65,469 due February 15t of each year with the final payment due February 2018. The interest rate is fixed at 2.08%. At June 30, 2018, 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 2018. The interest rate is fixed at 3.22%. At June 30, 2018, the capital lease was paid in full. 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, 2018, the capital lease was paid in full. 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, 2018, the outstanding amount of the advance was $3,953,624. 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. 68 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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, 2018, were as follows: Outstanding Amount at June 30,2018 City of Rancho Cucamonga: Assessment District 93-1 $ 1,005,000 Special Tax Refunding Bond, Series 2015: Community Facilities District No. 2000-01 374,000 Community Facilities District No. 2000-02 3,506,000 Community Facilities District No. 2001-01 Series A 6,571,000 Community Facilities District No. 2001-01 Series B 636,000 Community Facilities District No. 2006-01 3,502,000 Community Facilities District No. 2006-02 2,090,000 Community Facilities District No.2000-03 6,556,000 Community Facilities District No.2003-01 Series A 12,980,000 Community Facilities District No.2003-01 Series B 2,525,000 Community Facilities District No.2004-01 30,588,000 Rancho Cucamonga Redevelopment Agency: Multi-Family Housing Revenue Bond: Series 1997A 1,961,852 Total $ 72,294,852 69 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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. 70 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 9: Pension Plan Obligations (Continued) City Miscellaneous Plan Tier 1 * Tier 2* Tier 3* PEPRA Hire date Prior to September 1, 2010 July 4, 2011 January 1, 2013 September 1, 2010 but prior to but prior to and after July 3, 2011 January 1, 2013 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% 6.000% contribution rates Required employer 16.695% 16.695% 16.695% 16.695% contribution rates Fire District Miscellaneous Cost-Sharing Rate Plans Tier 1 * Tier 2' PEPRA Hire date Prior to July 9, 2011 January 1, 2013 and July 9, 2011 but prior to after January 1, 2013 Benefit formula 2.5% @ 55 2% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs Monthly benefits, as a%of eligible 2.000%-2.500%, 50 1.426%-2.418%, 1.000%-2.500%, compensation yrs-55+yrs, 50 yrs-63+yrs, 52 yrs-67+yrs, resoectively respectively resoectively Required employee contribution rates 8.000% 7.000% 6.250% Required employer contribution rates 19.204% 8.477% 6.560% *Plan is closed to new entrants Employees Covered— City Miscellaneous Plan As of the valuation date of June 30, 2016, the following employees were covered by the benefit terms of the Plan: Description Number of Members Active members 476 Transferred members 202 Terminated members 246 Retired members and beneficiaries 262 Total 1,186 71 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 9: Pension Plan Obligations (Continued) 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, 2018, the employer contributions recognized as a reduction to the net position liability for all the Plans were $7,703,763. 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, 2017, using an annual actuarial valuation as of June 30, 2016 rolled forward to June 30, 2017 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, 2017, the total pension liability was determined by rolling forward the June 30, 2016 total pension liability. The June 30, 2016 and the June 30, 2017 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB Statement No. 68 Actuarial Assumptions Discount Rate 7.15% Inflation 2.75% Salary Increases Varies by Entry Age and Service Investment Rate of Return 7.5% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Mortality Rate Table (1) Derived using CaIPERS' Membership Data for all Funds Post Retirement Benefit Contract COLA up to 2.75% until Increase Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1)The mortalitytable used was developed based on CaIPERS'specific data.The table includes 20 years of mortality improvements using Societyof 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, 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. 72 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 9: Pension Plan Obligations (Continued) Change of Assumptions In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. Discount Rate The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CaIPERS 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 7.15 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 7.15 percent is applied to all plans in the Public Employees Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at CalPERS' website under the GASB Statement No. 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 (PERF) cash flows. 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 CaIPERS effective on July 1, 2014. New Strategic Real Return Real Return Asset Class Allocation Years 1-10* Years 11+** Global Equity 47.00% 4.90% 5.38% Global Debt Securities 19.00% 0.80% 2.27% Inflation Assets 6.00% 0.60% 1.39% Private Equity 12.00% 6.60% 6.63% Real Estate 11.00% 2.80% 5.21% Infrastructure and Forestland 3.00% 3.90% 5.36% Liquidity 2.00% -2.20% -2.70% *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, 2018 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. Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Assets) (a) (b) (c)=(a)-(b) Balance at: June 30, 2016 $ 190,899,646 $ 149,674,797 $ 41,224,849 Changes Recognized for the Measurement Period: Service Cost 4,743,810 - 4,743,810 Interest on the Total Pension Liability 14,301,966 14,301,966 Changes of Benefit Terms - - Difference between Expected and Actual Experience 12,495,866 12,495,866 Changes of Assumptions (1,926,722) - (1,926,722) Contributions from the Employer - 4,207,753 (4,207,753) Contributions from Employees - 2,150,126 (2,150,126) Net Investment Income - 16,691,043 (16,691,043) Benefit Payments including Refunds of Employee Contributions (7,626,368) (7,626,368) - Administrative Expense - (220,985) 220,985 Net Changes During 2016/17 21,988,552 15,201,569 6,786,983 Balance at: June 30, 2017 $ 212,888,198 $ 164,876,366 $ 48,011,832 As of June 30, 2018, the Fire District reported net pension liabilities for its proportionate shares of the net pension liability of each rate Plan of$36,879,782. 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, 2017, 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, 2016, rolled forward to June 30, 2017, 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, 2016 and 2017, was as follows: Cost-Sharing Rate Plan Proportion -June 30, 2016 0.63595% Proportion -June 30, 2017 0.64009% Change - Increase (Decrease) 0.00414% 74 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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 7.15 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 (6.15 percent) or 1 percentage-point higher(8.15 percent)than the current rate: Discount Rate- 1% Current Discount Discount Rate +1% 6.15% 7.15% 8.15% Net Pension Liability $ 135,004,023 $ 84,891,614 $ 43,816,935 Pension Plan Fiduciary Net Position The plan fiduciary net position disclosed in the GASB Statement No. 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, 2017 (the measurement date), the City incurred a pension expense of$4,446,430 for all Plans. As of June 30, 2018, the following were the reported deferred outflows of resources and deferred inflows of resources related to all pension plans: Deferred Outflows Deferred Inflows of of Resources Resources Current year contributions that occurred after the measurement date of June 30, 2017 $ 8,474,713 $ - Change of Assumption 15,325,535 (1,464,361) Difference between Expected and Actual Experiences 380,689 (3,591,532) Net Difference between Projected and Actual Earnings on Pension Plan Investments 3,460,929 - Adjustment due to differences in proportions 828,634 - Difference in proportionate share 21,510 (41,202) Total $ 28,492,010 $ (5,097,095) 75 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 9: Pension Plan Obligations (Continued) Contributions subsequent to the measurement date in the amount of $8,474,713 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 2018 $ 2,795,535 2019 8,032,006 2020 5,802,036 2021 (1,709,375) 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 CAPERS 2.5% at 55 formula. Sample rates are as follows: Age Tier 1 and Tier 2 55 0.000% 56 0.100 57 0.200 58 0.300 59 0.400 60+ 0.500 The City and the Fire District have the right to amend, modify or terminate the plan at any time. Separate audited financial statements are not prepared. Benefits are increased by a 2% annual cost of living adjustment after retirement. There are no employee contributions for either tier. 76 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 10: PARS Retirement Enhancement Plan (Continued) Benefits Provided PARS provides supplemental retirement benefits to eligible employees of the City. Employees are eligible to receive benefits under the plan if they meet the following requirements: 1) a miscellaneous employee of the City or City Council on or after December 1, 2002, 2) at least 56 years of age, 3) has completed 10 or more years of full-time continuous employment at the City, 4) has terminated employment with the City and has concurrently retired under CalPERS if an active CalPERS member, and 5) has applied for benefits under the plan. Benefits shall be in an amount equal to one-twelfth of the product of the number of full and partial years of full-time continuous employment with the City completed as of the Member's retirement times the Member's final pay, times the PARS benefit factor. The total combined CalPERS age factor and PARS benefit factor at retirement may not exceed three percent. Hire date on or after December 1, 2002 Benefit formula one-twelfth of the product of the number of full and partial years of full-time continuous employment with the City completed as of the Member's retirement times the Member's final pay, times the PARS benefit factor Benefit vesting schedule 10 years service Benefit payments monthly for life Retirement age minimum 56 yrs Monthly benefits, as a % of N/A-not based on %of eligible compensation eligible compensation Required employee contribution rates 0.000% Required employer contribution rates 3.900% *This plan is closed to new entrants Employees Covered As of the valuation date of June 30, 2016, the following employees were covered by the Description Number of Members Active members 247 Retired members 112 benefit terms of the Plan:Total 359 Contribution Description The total plan contributions are determined through the PARS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Due to the City's pre-funding of its pension liability with PARS, the City's Plan had a net pension asset as of the June 30, 2017 actuarial valuation which positively impacted the actuarially determined rate. For the year ended June 30, 2018, the employer contributions recognized as a decrease to the net pension liability were $278,740. 77 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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, 2017, 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, 2017 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age, Level Percent of Payroll Actuarial Assumptions Discount Rate 5.75% at June 30, 2016 Inflation 2.75% at June 30, 2016 Salary Increases Aggregate- 3.00% Investment Rate of Return 5.75% Net of Pension Plan Investment and Administrative Expenses for the fiscal year ending 2016; rounded to the nearest 0.25% Mortality Rate Table CalPERS 1997-2011 Experience Study Post Retirement Benefit Base- CalPERS 1997-2011 Experience Increase Study All other actuarial assumptions used in the June 30, 2017 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, 2018 Note 10: PARS Retirement Enhancement Plan (Continued) The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. New Strategic Asset Class Allocation Real Return Fixed Income 45.0% 1.5% Cash 5.0% 0.1% Equity 50.0% 4.8% Changes in the Net Pension Asset The following table shows the changes in net pension asset recognized over the measurement period. Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability(Asset) (a) (b) (c)=(a)-(b) Balance at: June 30, 2016 $ 28,101,153 $ 27,882,695 $ 218,458 Changes Recognized for the Measurement Period: Service Cost 774,673 - 774,673 Interest on the Total Pension Liability 1,639,662 1,639,662 Changes of Benefit Terms (4,236) (4,236) Difference between Expected and Actual Experience - Changes of Assumptions - - Contributions from the Employer - 279,830 (279,830) Net Investment Income - 2,872,751 (2,872,751) Benefit Payments including Refunds of Employee Contributions (719,919) (719,919) - Administrative Expenses - (52,639) 52,639 Net Changes During 2016/17 1,690,180 2,380,023 (689,843) Balance at: June 30, 2017 $ 29,791,333 $ 30,262,718 $ (471,385) 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) $ 4,202,437 $ (471,385) $ (4,277,241) 79 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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 liability was $218,458. For the measurement period ending June 30, 2017, the City incurred a pension expense of $430,433 for the Plan. As of June 30, 2018, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows Deferred Inflows of of Resources Resources Current year contributions that occurred after the measurement date of June 30, 2017 $ 657,424 $ - Change of Assumption 1,555,958 - Difference between Expected and Actual Experiences - (81,502) Net Difference between Projected and Actual Earnings on Pension Plan I nvestments 110,270 - Total $ 2,323,652 $ (81,502) $657,424 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: Deferred Year ended Outflows/(Inflows) of June 30: Resources 2019 $ 232,040 2020 560,840 2021 347,440 2022 1,038 2023 257,772 Thereafter 185,596 80 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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 (CalPERS). 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 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. Employees Covered As of the June 30, 2017 measurement date, the following current and former employees were covered by the benefit terms under the HC Plan: Description Number of Members Active members 114 Retired members 68 Total 182 Funding Policy The contribution requirement of plan members and the Fire District are established and may be amended by the City Council. Currently, contributions are not required from plan members. Contributions to the Plan include all amounts paid by the City directly to the Plan, cash benefit payments made directly to plan members, and an implied subsidy payment as determined by the June 30, 2016 actuarial valuation. These contributions are netted against the reimbursements received from the CERBT. During the June 30, 2017 measurement period, the City paid $784,987 in premiums for retiree medical insurance and was reimbursed $764,987, and the implied subsidy was $261,000, for a total contribution of$281,000. 81 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 11: Other Post-Employment Benefits (Continued) Net OPEB Liability The City's net OPEB liability was measured as of June 30, 2017 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2016 that was rolled forward to determine the June 30, 2017 total OPEB liability, based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Actuarial Assumptions Discount Rate 5.50% Inflation 2.75% Salary Increases 3.00% per annum, in aggregate Investment Rate of Return N/A Mortality Rate(1) CalPERS 1997-2011 Experience Study Pre-Retirement Turnover(2) Derived using CaIPERS' Membership Data for all funds Healthcare Trend Rate Pre-Medicare-7.5%for 2019, decreasing to 4.0% for 2022 and later. Medicare-6.5%for 2019, decreasing to 4.0% for 2022 and later. Notes: (1) Pre-retirement mortality information was derived from data collected during 1997 to 2011 CaIPERS Experience Study dated January 2014 and post-retirement mortality information was derived from the 2007 to 2011 CalPERS Experience Study. The Experience Study Reports may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications. (2) The pre-retirement turnover information was developed based on CaIPERS' specific data. For more details, please refer to the 2007 to 2011 Experience Study Report. The Experience Study Report may be accessed on the CaIPERS website www.calpers.ca.gov under Forms and Publications. The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table for the CERBT Strategy 3: Long-term Target expected real Asset Class Allocation rate of return Global Equity 24.00% 4.82% Fixed income 39.00% 1.47% TI PS 26.00% 1.29% Commodities 3.00% 0.84% REITs 8.00% 3.76% Total 100.00% 82 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 11: Other Post-Employment Benefits (Continued) Discount Rate The discount rate used to measure the total OPEB liability was 5.50 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Changes in the OPEB Liability The changes in the net OPEB liability for the Plan are as follows: Increase(Decrease) Total OPEB Plan Fiduciary Net OPEB Liability Liability Net Position (Asset) (a) (b) (c)=(a)-(b) Balance at: June 30, 2016 $ 27,688,000 $ 27,617,000 $ 71,000 Changes Recognized for the Measurement Period: Service Cost 400,000 - 400,000 Interest 1,516,000 1,516,000 Changes of Benefit Terms - - Difference between Expected and Actual Experience - Changes of Assumptions - - Contributions from the Employer 281,000 (281,000) Net Investment Income 1,429,000 (1,429,000) Benefit Payments including Refunds of Employee Contributions (1,046,000) (1,046,000) - Administrative Expenses - (14,000) 14,000 Net Changes during 2016/17 870,000 650,000 220,000 Balance at:June 30, 2017 $ 28,558,000 $ 28,267,000 $ 291,000 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2017: Current 1% Decrease Discount Rate 1% Increase (4.50%) (5.50%) (6.50%) Net OPEB Liability/(Asset) $ 4,585,000 $ 291,000 $ (3,190,000) Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2017: Current Healthcare 1% Decrease Cost Trent Rates 1% Increase (6.5%/5.5%decreasing to (7.5%/6.5%decreasing to (8.5%/7.5%decreasing to 3.00%) 4.00%) 5.00%) Net OPEB Liability/(Asset) $ (3,309,000) $ 291,000 $ 4,718,000 83 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 11: Other Post-Employment Benefits (Continued) OPEB Plan Fiduciary Net Position CERBT issues a publicly available financial report that includes financial statements and required supplementary information. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2018, the City recognized OPEB revenue of$553,169. As of June 30, 2018, the City reported deferred outflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources OPEB contributions subsequent to measurement date $ 998,969 $Net difference between projected and actual earnings on OPEB plan investments 55,200 - Total $ 1,054,169 $ - The $998,969 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2017 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2019. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows: Deferred Year ended Outflows/(Inflows) of June 30: Resources 2019 $ 13,800 2020 13,800 2021 13,800 2022 13,800 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. 84 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 12: Summary Disclosure of Self-Insurance Contingencies (Continued) Liabilities of the City and the Fire District are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. The City 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, 2018 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: Current Year Claims Fiscal Year Beginning and Changes in Claim Ending Ended Balance Estimates Payments Balance June 30,2016 $ 3,118,846 $ 2,795,835 $ (1,500,198) $ 4,414,483 June 30,2017 4,414,483 563,504 (1,459,114) 3,518,873 85 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 13: Commitments and Contingencies The following schedule summarizes the major contractual commitments as of June 30, 2018: Expenditures to Contract date as of June Remaining Project Name Amount 30, 2018 Commitments Base Line at 1-15 Interchange $ 3,366,370 $ 1,142,733 $ 2,223,637 San Bernardino Station#172 Relocation and Police Substation 2,957,090 786,626 2,170,464 Local Street Rehabilitation 2,816,410 875,276 1,941,134 Fiber Optic Network 2,000,000 474,091 1,525,909 6th from Miliken to Charles Smith Pavement Rehabilitation 1,423,910 95,428 1,328,482 Sports Center Relocation 13,323,860 12,066,153 1,257,707 Jersey from Haven to Rochester Pavement Rehabilitation 1,031,910 30,028 1,001,882 Rochester from Base Line to Banyan Pavement Rehabilitation 982,040 29,120 952,920 Jersey Station#174 Training Facility 14,708,100 13,940,991 767,109 Foothill from Haven to Miliken Pavement Rehabilitation 821,910 85,640 736,270 Intelligent Transportation System Upgrade 777,760 47,934 729,826 Pacific Electric Trail Enhancements 730,500 1,413 729,087 Hellman at Metrolink Track Widening 2,315,610 1,725,359 590,251 Cucamonga Strom Drain Upper Phase 3 606,110 52,403 553,707 Haven from Foothill to Base Line Pavement Rehabilitation 492,290 - 492,290 Central Park Trailhead and Exercise Improvements 360,000 - 360,000 Freeway and Arterial Signal Synchronizaton Phase 1 332,440 5,023 327,417 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Rancho Cucamonga that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 11, 2012, the City elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12-001. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. 86 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) 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 $ 23,143,142 Cash and investments with fiscal agent 1,996 $ 23,145,138 b. Loans Receivable Notes and loans receivables consist of the following at June 30, 2018: 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, 2018, the outstanding balance was $11,091,413. 87 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) c. Long-Term Debt A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2018, follows: Balance Balance Due Within July 1, 2017 Additions Repayments June 30, 2018 One Year Bonds Tax Allocation Refunding Bonds-2007 Issue $ 64,895,000 $ $ 2,255,000 $ 62,640,000 $ 2,380,000 Tax Allocation Refunding Bonds-2014Issue 162,030,000 6,910,000 155,120,000 7,190,000 Tax Allocation Refunding Bonds-2016 Issue 56,860,000 1,885,000 54,975,000 1,615,000 Total Bonds 283,785,000 - 11,050,000 272,735,000 11,185,000 Developer Loans Bank of New York 8,587,098 - 660,233 7,926,865 719,475 Total Developer Loans 8,587,098 - 660,233 7,926,865 719,475 Total $292,372,098 $ - $ 11,710,233 280,661,865 $ 11,904,475 Unamortized Premium 27,384,749 Total $308,046,614 Tax Allocation Bonds 1. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project, Housing Set-aside Tax Allocation Bonds, Tax Exempt Series 2007A and Taxable Series 2007B. $155,620,000. In November 2007, the Rancho Cucamonga Redevelopment Agency issued $73,305,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds Tax-Exempt Series 2007A and $82,315,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds Taxable series 2007B to (a) refund and redeem the Agency's outstanding Rancho Redevelopment Project 1996 Housing Set-Aside Tax Allocation Bonds, (b) provide for the refunding and defeasance of the California Statewide Communities Development Authority Multifamily Housing Revenue Bonds, (c) extend set-aside and affordability restriction on 558 units within four apartment projects located in the City of Rancho Cucamonga pursuant to an Extended Affordability Agreement, and (d) finance other low and moderate income housing projects in or of benefit to the Project Area. The Series A issue consists of$29,950,000 in Serial bonds with maturities beginning September 1, 2008 through September 1, 2026, bearing interest ranging from 3.25% through 5.0%; and $43,355,000 in Term bonds due September 1, 2034, bearing interest at 5%. The Series B issue consists of$19,675,000 Term bonds due September 1, 2018, 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. 88 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 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. The balance at June 30, 2018, amounted to $62,640,000 plus unamortized bond premium of $291,260. The following schedule illustrates the debt service requirements to maturity for the 2007 Tax Allocation Refunding Bonds as of June 30, 2018: Year Ending June 30 Principal Interest 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 3,040,000 3,172,955 2024-2028 22,085,000 12,547,013 2029-2032 27,065,000 2,634,580 Total $ 62,640,000 $ 32,785,327 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%. 89 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) The balance at June 30, 2018, amounted to $155,120,000 plus unamortized bond premium of$20,476,435 and unamortized gain on defeasance of$1,926,027 . The following schedule illustrates the debt service requirements to maturity for the 2014 Tax Allocation Refunding Bonds as of June 30, 2018: Year Ending June 30 Principal Interest 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 8,735,000 5,988,375 2024-2028 50,695,000 22,759,875 2029-2033 64,705,000 8,403,625 Total $ 155,120,000 $ 65,171,500 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, 2018, amounted to $54,975,000 plus unamortized bond premium of$6,617,054 and unamortized loss on defeasance of$2,561,202. The following schedule illustrates the debt service requirements to maturity for the 2016 Tax Allocation Refunding Bonds as of June 30, 2018: Year Ending June 30 Principal Interest 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 1,870,000 1,983,050 2024-2028 8,470,000 8,437,000 2029-2033 18,085,000 6,851,100 2034-2035 19,735,000 797,100 Total $ 54,975,000 $ 26,737,075 90 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) 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, 2018, amounted to $7,926,865. The following schedule illustrates the debt service requirements to maturity for the Bank of New York loan as of June 30, 2018: Year Ending June 30 Principal Interest 2019 $ 719,475 $ 680,525 2020 784,030 615,970 2021 854,379 545,621 2022 931,041 468,959 2023 1,014,580 385,420 2024-2026 3,623,360 576,640 Total $ 7,926,865 $ 3,273,135 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 $408,628,902 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the City for the payment of indebtedness incurred by the dissolved redevelopment agency was $28,477,208 and the debt service obligation on the bonds was $24,807,961. 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, 2018 is $2,883,200. 91 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018 Note 14: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) d. 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 Note 12. e. 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, 2018, the Agency made payments totaling $648,333. Note 15: Net Position and Fund Balance Restatement During the current year, the net position of the Municipal Utility Fund was restated to capitalize contributed infrastructure assets received in the prior period but not capitalized. This resulted in a restatement of net position in the net amount of $337,135 as of June 30, 2017. During the current year, the net position of the Municipal Utility Fund was restated by $337,480 to record a prior year note receivable. In June 2015, GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits other than Pensions. The intention of this Statement is to improve accounting and financial reporting by state and local governments for OPEB. For the year ended June 30, 2018, the City adopted the provisions of GASB Statement No. 75. As a result of the implementation, the June 30, 2017 net position was restated by $14,267,639 to eliminate a $14,477,639 prepaid OPEB asset reported in the prior fiscal year and to add a $291,000 net OPEB liability as of June 30, 2018. Note 16: Subsequent Event The City is a defendant in certain legal actions arising in the normal course of operations. 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 settled the dispute with the plaintiff through mediation in July 2018. As a result, the City has accrued a liability in the approximate amount of $1.3 million in aggregate to the General Fund and Fire District Fund as of June 30, 2018. 92 REQUIRED SUPPLEMENTARY INFORMATION 93 CITY OF RANCHO CUCAMONGA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2018 Budgetary Comparison Information a. Budget Data General Budget Policies The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The Council conducts budget study sessions prior to holding a public hearing to adopt the budget. When required during the period, the Council also approves supplemental appropriations. There were several supplemental appropriations required during the year. A comprehensive update to budgeted figures occurs once per year as part of the Amended Budget process which is presented to the Council in May each fiscal year for approval. There were no significant non-budgeted financial activities during the year. The City Council may transfer funds between funds or activities set forth in the budget. The City Manager may transfer funds between line items within an appropriation as set forth in the budget and may transfer appropriations between activities within any fund. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level within the General Fund and at the function level for Special Revenue Funds, Capital Project Funds and Debt Service Funds. 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 Budgeting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that for budgeting purposes only encumbrances are treated as expenditures. A reconciliation has been provided on the applicable schedule when the basis of budgeting differs from GAAP. b. For the fiscal year ended June 30, 2018, 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 The Big Read Library Grant Drink, Drive, Lose Grant Homeland Security Grant- Fire Henderson/Wardman Drainage 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. 94 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) GENERALFUND YEAR ENDED JUNE 30,2018 Variance wit Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 111,965,316 $ 111,965,316 $ 111,965,316 $ - Resources(Inflows): Taxes 67,594,100 67,619,140 70,214,951 2,595,811 Licenses and permits 4,283,360 4,512,670 4,377,007 (135,663) Intergovernmental 584,250 526,840 500,029 (26,811) Charges for services 3,546,390 3,308,970 3,645,491 336,521 Use of money and property 1,270,000 1,567,310 737,977 (829,333) Fines and forfeitures 1,062,520 1,331,410 1,536,583 205,173 Contributions 82,660 82,660 103,644 20,984 Miscellaneous 2,792,840 3,235,250 3,478,005 242,755 Transfers in 1,591,310 1,837,260 1,835,545 (1,715) Proceeds from sale of capital asset 50,070 76,240 68,196 (8,044) Amounts Available for Appropriations 194,822,816 196,063,066 198,462,744 2,399,678 Charges to Appropriations(Outflow): General government General overhead 2,573,540 3,491,280 3,483,916 7,364 Personnel overhead 1,078,800 1,138,760 1,262,187 (123,427) City council 123,930 121,980 116,509 5,471 City management 915,860 898,330 873,223 25,107 City clerk 1,910 1,870 1,868 2 Administrative services 285,940 273,200 263,747 9,453 Business licenses 425,020 377,450 357,802 19,648 City facilities 1,160,040 969,290 902,039 67,251 Finance 1,458,950 1,438,420 1,399,735 38,685 Innovation and technology 3,848,620 3,808,925 3,571,850 237,075 Personnel 736,190 683,870 607,834 76,036 Procurement 245,990 256,860 251,479 5,381 Risk management 273,390 268,040 224,250 43,790 Treasury management 12,230 12,150 10,653 1,497 Communications 320,670 269,385 219,595 49,790 Records management 512,000 487,700 469,722 17,978 Healthy RC Program 559,610 512,665 503,755 8,910 Public safety-police Sheriff contract services 37,935,560 38,002,300 37,546,281 456,019 Public safety-animal center Animal center 3,236,220 3,218,100 3,113,889 104,211 Community development Planning 1,812,180 3,196,170 2,902,209 293,961 Planning commission 17,580 17,770 15,697 2,073 Community improvement 704,460 616,210 595,312 20,898 Administration 874,260 856,100 747,741 108,359 Building and safety 1,892,740 1,751,170 1,648,507 102,663 Community services Administration 5,218,190 5,155,780 4,847,633 308,147 Park and recreation commission 5,610 1,490 1,485 5 Engineering and public works Engineering administration 516,620 510,870 470,473 40,397 Development management 943,430 813,280 808,142 5,138 NPDES 401,160 353,100 329,428 23,672 Project management 480,750 449,540 426,885 22,655 Traffic management 276,730 195,680 145,862 49,818 Park maintenance 3,082,760 2,920,180 2,725,471 194,709 Vehicle and equipment maintenance 953,940 911,210 799,554 111,656 City facilities maintenance 3,799,560 3,751,730 3,469,422 282,308 Street maintenance 2,731,740 2,896,490 2,676,462 220,028 Fire facilities maintenance 251,800 243,850 234,702 9,148 Capital outlay 3,571,890 4,338,447 4,334,029 4,418 Debt service: Principal retirement 20,200 17,230 8,292 8,938 Interest and fiscal charges 21,760 18,020 17,399 621 Transfers out 3,158,060 3,414,980 3,025,210 389,770 Total Charges to Appropriations 86,439,890 88,659,872 85,410,249 3,249,623 Budgetary Fund Balance,June 30(Budgetary Basis) $ 108,382,926 $ 107,403,194 113,052,495 $ 5,649,301 Encumbrances 2,029,598 Budgetary Fund Balance,June 30(GAAP Basis) $ 115,082,093 95 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIGHTING DISTRICTS YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 4,681,078 $ 4,681,078 $ 4,681,078 $ - Resources(Inflows): Taxes 2,083,820 2,083,820 2,086,921 3,101 Use of money and property 50,080 63,940 (583) (64,523) Developer participation 2,000 2,000 - (2,000) Miscellaneous - 1,299,480 1,201,202 (98,278) Transfers in 455,270 455,270 455,270 - Amounts Available for Appropriations 7,272,248 8,585,588 8,423,888 (161,700) Charges to Appropriation(Outflow): General government 2,818,930 16,041,133 15,339,043 702,090 Capital outlay 14,353,730 1,056,727 189,929 866,798 Debt service: Interest and fiscal charges 115,170 90,400 90,223 177 Total Charges to Appropriations 17,287,830 17,188,260 15,619,195 1,569,065 Budgetary Fund Balance,June 30(Budgetary Basis) $(10,015,582) $ (8,602,672) (7,195,307) $ 1,407,365 Encumbrances 238,371 Budgetary Fund Balance,June 30(GAAP Basis) $ (6,956,936) 96 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) HOUSING SUCCESSOR AGENCY YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $134,728,040 $ 134,728,040 $134,728,040 $ - Resources(Inflows): Use of money and property 80,960 125,680 209,221 83,541 Miscellaneous 12,000 12,000 1,217,536 1,205,536 Amounts Available for Appropriations 134,821,000 134,865,720 136,154,797 1,289,077 Charges to Appropriations(Outflow): Community development 280,850 280,850 254,100 26,750 Capital outlay 4,200,000 465,440 - 465,440 Total Charges to Appropriations 4,480,850 746,290 254,100 492,190 Budgetary Fund Balance,June 30(Budgetary Basis) $130,340,150 $ 134,119,430 135,900,697 $1,781,267 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $135,900,697 97 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) FIRE DISTRICT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 73,189,657 $ 73,189,657 $ 73,189,657 $ - Resources(Inflows): Taxes 39,162,950 39,344,990 39,941,379 596,389 Licenses and permits 19,880 16,310 16,045 (265) Charges for services 6,820 4,090 874 (3,216) Use of money and property 894,360 1,007,350 810,997 (196,353) Fines and forfeitures 66,700 113,300 152,382 39,082 Miscellaneous 1,665,840 1,780,820 1,095,475 (685,345) Proceeds from sale of capital asset - 1,350 1,917 567 Amounts Available for Appropriations 115,006,207 115,457,867 115,208,726 (249,141) Charges to Appropriations(Outflow): Public safety-fire protection 34,150,290 35,942,224 32,373,088 3,569,136 Capital outlay 15,043,020 21,301,677 20,913,168 388,509 Debt service: Principal retirement 5,790 5,100 2,915 2,185 Interest and fiscal charges 91,980 92,030 92,020 10 Total Charges to Appropriations 49,291,080 57,341,031 53,381,191 3,959,840 Budgetary Fund Balance,June 30(Budgetary Basis) $ 65,715,127 $ 58,116,836 61,827,535 $ 3,710,699 Encumbrances 3,033,992 Budgetary Fund Balance,June 30(GAAP Basis) $ 64,861,527 98 THIS PAGE INTENTIONALLY LEFT BLANK 99 CITY OF RANCHO CUCAMONGA MISCELLANEOUS PLAN -AGENT MULTIPLE-EMPLOYER SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 TOTAL PENSION LIABILITY Service Cost $ 4,661,973 $ 4,342,707 $ 4,193,507 $ 4,743,810 Interest 12,370,506 12,931,479 13,651,750 14,301,966 Difference between Expected and Actual Experience - (3,882,722) (1,557,585) (1,926,722) Changes in Assumptions (3,352,733) - 12,495,866 Benefit Payments, Including Refunds of Employee Contributions (5,229,846) (5,847,197) (6,606,205) (7,626,368) Net Change in Total Pension Liability 11,802,633 4,191,534 9,681,467 21,988,552 Total Pension Liability-Beginning 165,224,012 177,026,645 181,218,179 190,899,646 Total Pension Liability-Ending(a) $ 177,026,645 $ 181,218,179 $ 190,899,646 $ 212,888,198 PLAN FIDUCIARY NET POSITION Contributions-Employer $ 3,520,721 $ 3,433,074 $ 3,745,698 $ 4,207,753 Contributions-Employee 2,156,312 2,074,191 2,120,443 2,150,126 Net Investment Income 21,772,350 3,320,843 782,082 16,691,043 Benefit Payments, Including Refunds of Employee Contributions (5,229,846) (5,847,197) (6,606,205) (7,626,368) Administrative Expense - (168,508) (91,249) (220,985) Net Change in Fiduciary Net Position 22,219,537 2,812,403 (49,231) 15,201,569 Plan Fiduciary Net Position-Beginning 124,692,088 146,911,625 149,724,028 149,674,797 Plan Fiduciary Net Position-Ending(b) $ 146,911,625 $ 149,724,028 $ 149,674,797 $ 164,876,366 Plan Net Pension Liability/(Assets)-Ending(a)-(b) $ 30,115,020 $ 31,494,151 $ 41,224,849 $ 48,011,832 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 82.99% 82.62% 78.40% 77.45% Covered Payroll $ 25,819,515 $ 25,082,858 $ 25,682,090 $ 26,459,567 Plan Net Pension Liability/(Asset)as a Percentage of Covered Payroll 116.64% 125.56% 160.52% 181.45% (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: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit(a.k.a. Golden Handshakes). Changes of Assumptions: In 2017,the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016,there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent(net of administrative expense) to 7.65 percent(without a reduction for pension plan administrative expense.) In 2014,amounts reported were based on the 7.5 percent discount rate. 100 CITY OF RANCHO CUCAMONGA MISCELLANEOUS PLAN -AGENT MULTIPLE-EMPLOYER SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 Actuarially Determined Contribution $ 3,433,074 $ 3,745,756 $ 4,192,505 $ 4,642,132 Contribution in Relation to the Actuarially Determined Contribution (3,433,074) (3,745,756) (4,192,505) (4,642,132) Contribution Deficiency(Excess) $ - $ - $ - $ - Covered Payroll $ 25,082,858 $ 25,682,090 $ 26,459,567 $ 27,268,038 Contributions as a Percentage of Covered Payroll 13.69% 14.59% 15.84% 17.02% (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: June 30,2016 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll, closed Assets valuation method Market Value Discount rate 7.15%(net of administrative expenses) Projected Salary Increases 3.30%to 14.20%depending on Age, Service, and type of employment Inflation 2.75% Payroll growth 3.00% Individual salary growth 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%. 101 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) 2015 2016 2017 2018 Proportion of the Net Pension Liability 0.02166% 0.02652% 0.06568% 0.06723% Proportionate Share of the Net Pension Liability $ 1,348,194 $ 1,819,909 $ 2,281,501 $ 2,650,258 Covered Payroll $ 1,474,657 $ 1,437,227 $ 1,524,047 $ 1,577,007 Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 91.42% 126.63% 149.70% 168.06% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% 78.40% 75.87% 75.39% Notes to Schedule: Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date.This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit(a.k.a. Golden Handshakes). Changes of Assumptions: In 2017,the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016,there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent(net of administrative expense)to 7.65 percent(without a reduction for pension plan administrative expense.)In 2014, amounts reported were based on the 7.5 percent discount rate. (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) 2015 2016 2017 2018 Actuarially Determined Contribution $ 210,430 $ 219,901 $ 238,202 $ 254,681 Contribution in Relation to the Actuarially Determined Contribution (210,430) (219,901) (238,202) (254,681) Contribution Deficiency(Excess) $ $ - $ - $ - Covered Payroll $ 1,437,227 $ 1,524,047 $ 1,577,007 $ 1,619,191 Contributions as a Percentage of Covered Payroll 14.64% 14.43% 15.10% 15.73% (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: June 30,2016 Methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry Age Normal Cost Method Amortization method Level percentage of payroll, closed Assets valuation method Market Value Discount Rate 7.15%(net of administrative expenses) Projected Salary Increases 3.00% Inflation 2.75% Payroll Growth 3.00% Individual Salary Growth 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) 2015 2016 2017 2018 Proportion of the Net Pension Liability 0.31131% 0.33146% 0.57027% 0.57286% Proportionate Share of the Net Pension Liability $ 19,373,864 $ 22,750,560 $ 29,535,666 $ 34,229,524 Covered Payroll $ 10,396,960 $ 10,554,523 $ 11,373,722 $ 11,451,394 Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 186.34% 215.55% 259.68% 298.91% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% 78.40% 72.69% 71.74% Notes to Schedule: Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent(net of administrative expense)to 7.65 percent(without a reduction for pension plan administrative expense.)In 2014, amounts reported were based on the 7.5 percent discount rate. (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) 2015 2016 2017 2018 Actuarially Determined Contribution $ 2,827,842 $ 3,007,980 $ 3,273,056 $ 3,577,900 Contribution in Relation to the Actuarially Determined Contribution (2,827,842) (3,007,980) (3,273,056) (3,577,900) Contribution Deficiency(Excess) $ - $ - $ - $ - Covered Payroll $ 10,554,523 $ 11,373,722 $ 11,451,394 $ 11,663,014 Contributions as a Percentage of Covered Payroll 26.79% 26.45% 28.58% 30.68% (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: June 30, 2016 Methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry Age Normal Cost Method Amortization method Level percentage of payroll, closed Assets valuation method Market Value Discount Rate 7.15%(net of administrative expenses) Projected Salary Increases 3.00% Inflation 2.75% Payroll Growth 3.00% Individual Salary Growth 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) 2015 2016 2017 2018 TOTAL PENSION LIABILITY Service Cost $ 719,000 $ 743,000 $ 716,000 $ 774,673 Interest 1,329,000 1,425,000 1,523,000 1,639,815 Changes of Benefits Terms - - 538,000 - Difference Between expected and Actual Experience - - (110,000) - Changes in Assumptions - - 2,100,000 - Changes in Benefit Terms - - - (4,236) Benefit Payments, Including Refunds of Employee Contributions (495,000) (546,000) (631,000) (719,919) Net Change in Total Pension Liability 1,553,000 1,622,000 4,136,000 1,690,333 Total Pension Liability-Beginning 20,790,000 22,343,000 23,965,000 28,101,000 Total Pension Liability-Ending(a) $ 22,343,000 $ 23,965,000 $ 28,101,000 $ 29,791,333 PLAN FIDUCIARY NET POSITION Contribution-Employer $ 497,000 $ 467,000 $ 312,000 $ 279,830 Net Investment Income 3,177,000 660,000 21,000 2,872,446 Benefit Payments, Including Refunds of Employee Contributions (495,000) (546,000) (631,000) (719,919) Other Changes in Fiduciary Net Position (33,000) (47,000) (35,000) (52,639) Net Change in Fiduciary Net Position 3,146,000 534,000 (333,000) 2,379,718 Plan Fiduciary Net Position-Beginning 24,536,000 27,682,000 28,216,000 27,883,000 Plan Fiduciary Net Position-Ending(b) $ 27,682,000 $ 28,216,000 $27,883,000 $ 30,262,718 Plan Net Pension Liability/(Assets)-Ending(a)-(b) $ (5,339,000) $ (4,251,000) $ 218,000 $ (471,385) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 123.90% 117.74% 99.22% 101.58% Covered Payroll $ 24,363,588 $ 22,739,613 $21,593,214 $ 19,909,987 Plan Net Pension Liability/(Asset)as a Percentage of Covered Payroll -21.91% -18.69% 1.01% -2.37% (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:The Benefit Factor used to determine the City Manager's benefit was changed to 0.5% beginning at age 55 instead of age 60. Changes of Assumptions: None 106 CITY OF RANCHO CUCAMONGA PARS RETIREMENT ENHANCEMENT PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 Actuarially Determined Contribution $ 467,000 $ 307,590 $ 278,740 $ 657,424 Contribution in Relation to the Actuarially Determined Contribution (467,000) (307,590) (278,740) (657,424) Contribution Deficiency(Excess) $ - $ - $ - $ - Covered Payroll $22,739,613 $21,593,214 $ 19,909,987 $ 18,246,690 Contributions as a Percentage of Covered Payroll (2) 2.05% 1.42% 1.40% 3.60% (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. (2) Due to timing differences for when the plan recognizes contributions and a change in the actuarially determined contribution rate from 1.40%to 3.90%during the fiscal year,the rate does not report the actuarially determined rate of 3.90%for 2018. Note to Schedule: Valuation Date: June 30, 2016 Methods and assumptions used to determine contribution rates: Actuarial cost method Agrregate Cost Amortization method Level-dollar Amortization period 11-year fixed period Assets valuation method Actuarial value of assets Discount rate 5.75% Inflation 2.75% Salary Increases 4.5%average, including inflation of 3.0% Investment rate of return 5.75% net of pension investment and administrative expenses, including inflation. Retirement age CalPERS 1997-2011 Experience Study Mortality CalPERS 1997-2011 Experience Study 107 CITY OF RANCHO CUCAMONGA SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 Total OPEB Liability Service cost $ 400,000 Interest on the total OPEB liability 1,516,000 Actual and expected experience difference - Changes in assumptions - Changes in benefit terms - Benefit payments (1,046,000) Net change in total OPEB liability 870,000 Total OPEB liability-beginning 27,688,000 Total OPEB liability-ending (a) $ 28,558,000 Plan Fiduciary Net Position Contribution-employer $ 281,000 Net investment income 1,429,000 Benefit payments (1,046,000) Administrative expense (14,000) Net change in plan fiduciary net position 650,000 Plan fiduciary net position -beginning 27,617,000 Plan fiduciary net position -ending (b) $ 28,267,000 Net OPEB Liability/(Assets)-ending (a) -(b) $ 291,000 Plan fiduciary net position as a percentage of the total OPEB liability 98.98% Covered-employee payroll $ 15,842,421 Net OPEB liability as a percentage of covered-employee payroll 1.84% (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years'information will be displayed up to 10 years as information becomes available. Notes to Schedule: Changes in assumptions: None 108 CITY OF RANCHO CUCAMONGA SCHEDULE OF CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 Actuarially Determined Contribution $ 998,969 Contribution in Relation to the Actuarially Determined Contributions (998,969) Contribution Deficiency(Excess) $ - Covered-employee payroll $ 16,635,534 Contributions as a percentage of covered-employee payroll 6.01% (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years'information will be displayed up to 10 years as information becomes available. Notes to Schedule: *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2018 were from the June 30, 2015 actuarial valuation. Methods and assumptions used to determine contributions: Actuarial Cost Method Entry Age, level percentage of payroll Amortization Valuation Method/Period Level percent of payroll over a closed 30-year period starting 2016/17 Asset Valuation Method Investment gains/losses spread over 5-year rolling period with 20% market value corridor Discount Rate 6.00% General Inflation 3.00% Payroll Growth 3% per annum, in aggregate Mortality, Disability,Termination, CaIPERS 1997-2011 Experience Study Retirement Medical Trend Pre-Medicare-6.5%for 2018, decreasing to 5.0%for 2021 and later Medicare-6.7%for 2018, decreasing to 5.0%for 2021 and later Other Assumptions See our actuarial valuation report dated 10/18/16 109 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. 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). 110 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. 111 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. 112 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 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 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 SecuritV 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." 113 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. 114 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) 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. 115 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Capital Projects Funds Assessment District 82-1 Fund - Established to account for the receipt and disbursement of funds used in the construction of streets, storm drainage and utility improvements within the project area. Financing was provided by the sale of bonds under the Refunding Act of 1984 for 1915 Improvement Act Bonds. Assessment District 84-1 Fund - Established to account for the receipt and disbursement of funds used in the construction and installation of public capital drainage facilities, together with appurtenant work and incidental expenses, to serve and provide drainage protection to property located within Assessment District No. 84-1 (Day Creek Drainage System). Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Assessment District 86-2 Fund - Established to account for the receipt and disbursement of funds used in construction and acquisition of drainage improvements together with appurtenances and appurtenant work, acquisition of real property, if necessary, and incidental expenses within the Assessment District No. 86-2. Financing was provided by the sale of limited obligation bonds under the Improvement Bond Act of 1915. Community Facilities District 2000-01 South Etiwanda Fund - Established to account for the receipt and disbursement of funds used in the acquisition and construction of facilities consisting primarily of storm drain, sewer, water, landscaping, park facilities and improvements. Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities District 2001-01 Fund - This CFD was established to fund the necessary infrastructure (streets, storm drains, sewer, water, landscaping, and traffic signals) integral to the proposed mall located at Foothill Blvd. and the 1-15 Freeway. The improvements are located south of Base Line Rd., primarily north of Foothill Blvd., primarily east of Day Creek Channel, and west of Etiwanda Ave. Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities 2003-01 Fund - This CFD was established to fund the necessary infrastructure (streets, storm drains, sewer, water, landscaping, and traffic signals) integral to the proposed mall located at Foothill Blvd. and the 1-15 Freeway. The improvements are generally bordered on the north by Church Street, on the east by Interstate 15, on the south by Arrow Route and on the west by a Southern California Edison easement from Arrow Route north to Foothill Boulevard and by Day Creek Boulevard from Foothill Boulevard north to Church Street. Financing will be provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Public Library Bond Act 2000 Fund - This grant is from funds made available by the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for the construction of the Victoria Gardens Library. Etiwanda Equestrian Facility - Established to account for monies paid by developers for the future construction of an equestrian facility in the Rancho Etiwanda Estates development. Community Facilities District 2004-01 Rancho Etiwanda Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to the proposed public financing district. Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. 116 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Capital Projects Funds (Continued) Community Facilities District 2003-01 Cultural Center Fund - Established to account for the portion of the costs associated with the development of the City's Cultural Arts Center that is being funded by Community Facilities District (CFD) 2003-01. Financing for the CFD will be provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities District 2006-01 Vintner's Grove Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Community Facilities District 2006-02 Amador on Route 66 Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. 117 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 Special Revenue Funds Park Gas Tax Recreation Development Beautification Assets: Cash and investments $ 9,051,869 $ 3,334,234 $ 8,196,602 $ 1,044,800 Receivables: Accounts 378,147 511,448 - - Taxes - - - - Accrued interest 25,884 10,393 36,980 3,528 Other loans - - - - Grants - - Prepaid costs 361 52,635 Deposits - 30,442 Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 9,456,261 $ 3,939,152 $ 8,233,582 $ 1,048,328 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 95,789 $ 369,888 $ 27,131 $ Accrued liabilities 57,067 144,982 5,925 Unearned revenues - 731,921 - Deposits payable - 18,873 Due to other governments - - Due to other funds - - - Total Liabilities 152,856 1,265,664 33,056 - Deferred Inflows of Resources: Unavailable revenues - 666 - 93,407 Total Deferred Inflows of Resources - 666 93,407 Fund Balances: Nonspendable: Prepaid costs 361 52,635 - - Deposits - 30,442 - Restricted for: Community development projects - - 8,200,526 Public safety-police - - - Parks and recreation - 2,589,745 - - Engineering and public works 9,303,044 - - 954,921 Capital improvement projects - - - - Underground utilities - - - Landscape maintenance - - - Library services - - - Public safety-animal center - - - Unassigned - - - - Total Fund Balances 9,303,405 2,672,822 8,200,526 954,921 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 9,456,261 $ 3,9397152 $ 8,233,582 $ 1,048,328 118 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 (CONTINUED) Special Revenue Funds Landscape Community Maintenance Pedestrian Development Districts Transportation Grant Block Grant Assets: Cash and investments $ 18,428,577 $ 24,835,445 $ $ 341,601 Receivables: Accounts 63,517 26,140 292,252 Taxes 89,020 - - Accrued interest 53,138 82,612 - Other loans - - 1,366,502 Grants - - 222,776 Prepaid costs - - - Deposits - - Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ 18,634,252 $ 24,944,197 $ $ 2,223,131 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 1,080,089 $ 472,630 $ $ 51,035 Accrued liabilities 100,127 18,103 13,228 Unearned revenues - - 9,764 Deposits payable - - - Due to other governments - - 582,955 Due to other funds - - - Total Liabilities 1,180,216 490,733 656,982 Deferred Inflows of Resources: Unavailable revenues - - 421,923 Total Deferred Inflows of Resources - - 421,923 Fund Balances: Nonspendable: Prepaid costs - - - Deposits - - - Restricted for: Community development projects - - 1,144,226 Public safety-police - - - Parks and recreation - - Engineering and public works - 24,453,464 Capital improvement projects - - Underground utilities - Landscape maintenance 17,454,036 Library services - - Public safety-animal center - - Unassigned - - - Total Fund Balances 17,454,036 24,453,464 - 1,144,226 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 187634,252 $ 24,944,197 $ - $ 2,223,131 119 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 Special Revenue Funds San Sevaine/ Assessment Etiwanda Air Quality Administration Drainage SB 140 Improvement Assets: Cash and investments $ 823,110 $ 981,043 $ 36,160 $ 1,259,932 Receivables: Accounts - - - - Taxes - - - - Accrued interest 2,531 3,259 - 3,866 Other loans - - - - Grants - - - 58,380 Prepaid costs - - - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 825,641 $ 984,302 $ 36,160 $ 1,322,178 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 9,595 $ - $ - $ 1,413 Accrued liabilities 8,051 - - - Unearned revenues - - - Deposits payable - - - Due to other governments - - - Due to other funds - - - - Total Liabilities 17,646 - - 1,413 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - Fund Balances: Nonspendable: Prepaid costs - - - Deposits - - - - Restricted for: Community development projects 807,995 - - 1,320,765 Public safety-police - - - - Parks and recreation - - - Engineering and public works - - 36,160 Capital improvement projects - 984,302 - Underground utilities - - - Landscape maintenance - - - Library services - - - Public safety-animal center - - - Unassigned - - - - Total Fund Balances 807,995 984,302 36,160 1,320,765 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 8257641 $ 984,302 $ 36,160 $ 1,322,178 120 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 (CONTINUED) Special Revenue Funds South Lower Masi Etiwanda Etiwanda Commerce Drainage Drainage Center Measure I Assets: Cash and investments $ 862,426 $ 607,805 $ 11,004 $ 3,879,818 Receivables: Accounts - - - 741,745 Taxes - - - - Accrued interest 2,791 2,046 35 13,168 Other loans - - - - Grants - - - Prepaid costs - - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - 292,726 - Total Assets $ 865,217 $ 609,851 $ 303,765 $ 4,634,731 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ $ - $ 237,224 Accrued liabilities - - - 5,946 Unearned revenues - - - - Deposits payable - - - Due to other governments - - - Due to other funds - - - - Total Liabilities - - - 243,170 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 865,217 609,851 - 4,391,561 Capital improvement projects - - 303,765 - Underground utilities - - - Landscape maintenance - - - Library services - - - Public safety-animal center - - - Unassigned - - - - Total Fund Balances 865,217 609,851 303,765 4,391,561 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 8657217 $ 609,851 $ 303,765 $ 4,634,731 121 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 Special Revenue Funds Proposition Used Oil Library 84-Park Bond Asset Recycling Services Act Forfeiture Grant Assets: Cash and investments $ 7,062,131 $ - $ 76,863 $ 365 Receivables: Accounts 1,759 - - - Taxes 31,346 - - Accrued interest 19,617 - 277 Other loans - - - Grants - - - Prepaid costs 3,500 - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 7,118,353 $ - $ 77,140 $ 365 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 229,086 $ Accrued liabilities 131,067 - - - Unearned revenues 42,435 - - 365 Deposits payable 15 - - - Due to other governments - - - Due to other funds - - - - Total Liabilities 402,603 - - 365 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - Fund Balances: Nonspendable: Prepaid costs 3,500 - Deposits - - - Restricted for: Community development projects - - - Public safety-police - - 77,140 Parks and recreation - - - Engineering and public works - - - Capital improvement projects 798,757 - - Underground utilities - - - Landscape maintenance - - - Library services 5,913,493 - - Public safety-animal center - - - Unassigned - - - Total Fund Balances 6,715,750 - 77,140 - Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 7,1187353 $ - $ 77,140 $ 365 122 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 (CONTINUED) Special Revenue Funds Community and Recreation Park COPS Centers Improvement Drainage Program Grant Impact Fee Fee Facilities Assets: Cash and investments $ 624,002 $ 515,303 $ 755,382 $ 5,115,945 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 1,612 2,367 16,305 Other loans - - - - Grants - - - - Prepaid costs 500 - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 624,502 $ 516,915 $ 757,749 $ 5,132,250 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 106,241 $ - Accrued liabilities - - 2,486 Unearned revenues - - - Deposits payable - - - Due to other governments - - - Due to other funds - - - Total Liabilities 106,241 - 2,486 Deferred Inflows of Resources: Unavailable revenues - - - 5,102 Total Deferred Inflows of Resources - - 5,102 Fund Balances: Nonspendable: Prepaid costs 500 - - - Deposits - - - - Restricted for: Community development projects - - - - Public safety-police 517,761 - - - Parks and recreation - 516,915 757,749 - Engineering and public works - - - 5,124,662 Capital improvement projects - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Public safety-animal center - - - - Unassigned - - - - Total Fund Balances 518,261 516,915 757,749 5,124,662 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 6247502 $ 516,915 $ 757,749 $ 5,132,250 123 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 Special Revenue Funds Library AB 2928 Services& Traffic Litter CA State Technologies Congestion Reduction Library Act Relief Grant Assets: Cash and investments $ 142,729 $ 36,486 $ 289,581 $ 20,833 Receivables: Accounts - - - - Taxes - - - Accrued interest - - - Other loans - - - Grants - - - Prepaid costs - - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 142,729 $ 36,486 $ 289,581 $ 20,833 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - $ $ 4,439 Accrued liabilities - - - Unearned revenues 115,968 16,394 Deposits payable - - - Due to other governments - - - Due to other funds - - - Total Liabilities 115,968 20,833 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 - - 289,581 - Capital improvement projects - - - - Underground utilities - - - Landscape maintenance - - - Library services 26,761 36,486 - Public safety-animal center - - - Unassigned - - - - Total Fund Balances 26,761 36,486 289,581 - Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 1427729 $ 36,486 $ 289,581 $ 20,833 124 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 (CONTINUED) Special Revenue Funds Energy Efficient& Senior Conservation SAFETEA-LU Outreach Underground Block Grant Grant Grant Utilities Assets: Cash and investments $ 404 $ 11,194 $ - $ 10,598,754 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 78 - 36,287 Other loans 251,224 - - - Grants - 134,688 - Prepaid costs - - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 251,628 $ 145,960 $ - $ 10,635,041 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 134,688 $ - $ Accrued liabilities 500 - - Unearned revenues - 11,272 - Deposits payable - - - Due to other governments 251,224 - - Due to other funds - - 5,267 Total Liabilities 251,724 145,960 5,267 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 - - - - Underground utilities - - - 10,635,041 Landscape maintenance - - - - Library services - - - Public safety-animal center - - - Unassigned (96) - (5,267) - Total Fund Balances (96) - (5,267) 10,635,041 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 2517628 $ 145,960 $ - $ 10,635,041 125 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 Special Revenue Funds Safe Routes Citywide COPS Secure to School Foothill Blvd. Infrastructure Our Schools Program Maintenance Improvement Grant Assets: Cash and investments $ - $ - $ 24,373,414 $ 11,865 Receivables: Accounts 16,253 - 274,425 - Taxes - - - Accrued interest - - 83,618 Other loans - - - Grants 74,584 - - Prepaid costs - - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 90,837 $ $ 24,731,457 $ 11,865 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 1,996 $ - $ 691,397 $ Accrued liabilities 1,934 - - - Unearned revenues - - - 11,865 Deposits payable - - - - Due to other governments - - - Due to other funds 86,906 1,433 - - Total Liabilities 90,836 1,433 691,397 11,865 Deferred Inflows of Resources: Unavailable revenues 74,584 - - - Total Deferred Inflows of Resources 74,584 - - Fund Balances: Nonspendable: Prepaid costs - - - Deposits - - - Restricted for: Community development projects - - - Public safety-police - - - Parks and recreation - - - Engineering and public works - - - Capital improvement projects - - 24,040,060 Underground utilities - - - Landscape maintenance - - - Library services - - - Public safety-animal center - - - Unassigned (74,583) (1,433) - Total Fund Balances (74,583) (1,433) 24,040,060 - Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 90,837 $ - $ 24,731,457 $ 11,865 126 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 (CONTINUED) Special Revenue Funds CA State Library Staff Proposition Innovation The Big Read Drink, Drive, 1 B-SLPP Fund Grant Library Grant Lose Grant Assets: Cash and investments $ 3,050 $ 250,261 $ 34,221 $ 15,130 Receivables: Accounts - - - - Taxes - - - - Accrued interest 9 841 - - Other loans - - - - Grants - - - - Prepaid costs - - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ 3,059 $ 251,102 $ 34,221 $ 15,130 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ $ - $ - Accrued liabilities - - - - Unearned revenues - 251,102 14,221 15,130 Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Total Liabilities 251,102 14,221 15,130 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 3,059 - - - Capital improvement projects - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - 20,000 - Public safety-animal center - - - - Unassigned - - - - Total Fund Balances 3,059 - 20,000 - Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 3,059 $ 251,102 $ 34,221 $ 15,130 127 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 Special Revenue Funds Homeland Public Henderson/ Security Grant Resource Proposition Wardman -Fire Grants 1 B Drainage Assets: Cash and investments $ 29,223 $ - $ 242,635 $ 967,342 Receivables: Accounts - 6,300 - - Taxes - - - - Accrued interest - - 815 - Other loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 29,223 $ 6,300 $ 243,450 $ 967,342 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ - Accrued liabilities - - - - Unearned revenues 29,223 - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - 20,653 - - Total Liabilities 29,223 20,653 - - 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 - - 243,450 967,342 Capital improvement projects - - - - Underground utilities - - - - Landscape maintenance - - - - Library services - - - - Public safety-animal center - - - - Unassigned - (14,353) - - Total Fund Balances - (14,353) 243,450 967,342 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 297223 $ 6,300 $ 243,450 $ 967,342 128 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 (CONTINUED) Special Revenue Funds Proposition Freedom Integrated 42-Traffic Courtyard Waste Federal Grant Congestion Resource Management Fund-Dreier Relief Grants Assets: Cash and investments $ 3,526,368 $ 13,368 $ $ 2,148 Receivables: Accounts 2,502 - - Taxes 312,957 - - Accrued interest 9,978 - - Other loans - - - Grants - - - Prepaid costs - - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ 3,851,805 $ 13,368 $ - $ 2,148 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 3,992 $ 13,545 $ $ - Accrued liabilities 37,036 - - Unearned revenues - - 2,148 Deposits payable - - - Due to other governments - - - Due to other funds - - - Total Liabilities 41,028 13,545 2,148 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 3,810,777 - - Capital improvement projects - - - Underground utilities - - - Landscape maintenance - - - Library services - - - Public safety-animal center - - - Unassigned - (177) - Total Fund Balances 3,810,777 (177) - - Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 3,8517805 $ 13,368 $ - $ 2,148 129 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 Special Revenue Funds Emergency Justice Management Homeland Used Oil Assistance Performance Security Grant- Recycling Grant Grant Police Program Assets: Cash and investments $ 5,641 $ - $ $ 50,586 Receivables: Accounts - - - Taxes - - - Accrued interest - - 113 Other loans - - - Grants - 28 2,107 Prepaid costs - - - Deposits - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 5,641 $ 28 $ 2,107 $ 505699 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 2,740 $ - $ $ 4,702 Accrued liabilities - - 1,078 Unearned revenues 757 40,854 Deposits payable - - - Due to other governments - - Due to other funds - 28 2,107 - Total Liabilities 3,497 28 2,107 46,634 Deferred Inflows of Resources: Unavailable revenues - 28 2,107 - Total Deferred Inflows of Resources - 28 2,107 Fund Balances: Nonspendable: Prepaid costs - - Deposits - - Restricted for: Community development projects - - Public safety-police 2,144 - Parks and recreation - - - Engineering and public works - - 4,065 Capital improvement projects - - - Underground utilities - - Landscape maintenance - - Library services - - Public safety-animal center - - Unassigned - (28) (2,107) - Total Fund Balances 2,144 (28) (2,107) 4,065 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 57641 $ 28 $ 2,107 $ 50,699 130 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 (CONTINUED) Special Revenue Funds Library Police Impact Animal Center Park Land Impact Fee Fee Impact Fee Acquisition Assets: Cash and investments $ 467,512 $ 345,530 $ 95,841 $ 1,346,012 Receivables: Accounts - - - - Taxes - - - - Accrued interest 1,491 1,023 303 4,187 Other loans - - - - Grants - - - Prepaid costs - - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 469,003 $ 346,553 $ 96,144 $ 1,350,199 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 - 346,553 - - Parks and recreation - - - 1,350,199 Engineering and public works - - - - Capital improvement projects - - - Underground utilities - - - Landscape maintenance - - - Library services 469,003 - - Public safety-animal center - - 96,144 Unassigned - - - - Total Fund Balances 469,003 346,553 96,144 1,350,199 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 4697003 $ 346,553 $ 96,144 $ 1,350,199 131 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 Capital Projects Funds CFD 2000-01 Assessment Assessment Assessment South District 82-1 District 84-1 District 86-2 Etiwanda Assets: Cash and investments $ 13,245 $ 1,123,550 $ $ 76 Receivables: Accounts - - - Taxes - - Accrued interest 43 3,788 Other loans - - Grants - Prepaid costs - Deposits - Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ 13,288 $ 1,127,338 $ $ 76 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities - Unearned revenues - Deposits payable - Due to other governments - Due to other funds - 41,128 Total Liabilities - 41,128 Deferred Inflows of Resources: Unavailable revenues - - Total Deferred Inflows of Resources - - Fund Balances: Nonspendable: Prepaid costs - - Deposits - - Restricted for: Community development projects - Public safety-police - Parks and recreation - Engineering and public works - - - Capital improvement projects 13,288 1,127,338 76 Underground utilities - - - Landscape maintenance - Library services - - Public safety-animal center - - Unassigned - - (41,128) - Total Fund Balances 13,288 1,127,338 (41,128) 76 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 13,288 $ 1,127,338 $ $ 76 132 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 (CONTINUED) Capital Projects Funds Public Library Etiwanda Bond Act- Equestrian CFD 2001-01 CFD 2003-01 2000 Facility Assets: Cash and investments $ 2,883,465 $ 157,126 $ 32,176 $ 678,165 Receivables: Accounts - - - - Taxes - - - - Accrued interest 1,699 - - 2,280 Other loans - - - - Grants - - Prepaid costs - - Deposits - - - Restricted assets: Cash and investments with fiscal agents - 170,830 - - Total Assets $ 2,885,164 $ 327,956 $ 32,176 $ 680,445 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 2,423,405 $ 154,019 $ - $ Accrued liabilities - - - Unearned revenues - - 26,048 Deposits payable - - - Due to other governments - - - Due to other funds - - - Total Liabilities 2,423,405 154,019 26,048 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 461,759 173,937 6,128 680,445 Underground utilities - - - - Landscape maintenance - - - Library services - - - Public safety-animal center - - - Unassigned - - - - Total Fund Balances 461,759 173,937 6,128 680,445 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 2,8857164 $ 327,956 $ 32,176 $ 680,445 133 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2018 Capital Projects Funds Total CFD 2004-01 CFD 2003-01 CFD 2006-01 CFD 2006-02 Nonmajor Rancho Cultural Vintner's Amador on Governmental Etiwanda Center Grove Route 66 Funds Assets: Cash and investments $ 5,112 $ $ 1,848 $ 6,087 $ 135,625,395 Receivables: Accounts - - - 2,314,488 Taxes - - - 433,323 Accrued interest 9 - 17 426,988 Other loans - - - 1,617,726 Grants - - - 492,563 Prepaid costs - - - 56,996 Deposits - - - - 30,442 Restricted assets: Cash and investments with fiscal agents 43,683 186,310 - - 693,549 Total Assets $ 48,804 $ 186,310 $ 1,848 $ 6,104 $141,691,470 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ $ $ - $ 6,115,044 Accrued liabilities - - - 527,530 Unearned revenues - - - - 1,319,467 Deposits payable - - - - 18,888 Due to other governments - - - - 834,179 Due to other funds - 179,628 - - 337,150 Total Liabilities - 179,628 - - 9,152,258 Deferred Inflows of Resources: Unavailable revenues - - - - 597,817 Total Deferred Inflows of Resources - - - - 597,817 Fund Balances: Nonspendable: Prepaid costs - - - - 56,996 Deposits - - - - 30,442 Restricted for: Community development projects - - - - 11,473,512 Public safety-police - - - - 943,598 Parks and recreation - - - - 5,214,608 Engineering and public works - - - - 51,057,154 Capital improvement projects 48,804 6,682 1,848 6,104 28,653,293 Underground utilities - - - - 10,635,041 Landscape maintenance - - - - 17,454,036 Library services - - - - 6,465,743 Public safety-animal center - - - - 96,144 Unassigned - - - - (139,172) Total Fund Balances 48,804 6,682 1,848 6,104 131,941,395 Total Liabilities, Deferred Inflows of Resources,and Fund Balances $ 48,804 $ 186,310 $ 1,848 $ 6,104 $141,691,470 134 THIS PAGE INTENTIONALLY LEFT BLANK 135 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 Special Revenue Funds Park Gas Tax Recreation Development Beautification Revenues: Taxes $ $ - $ - $ - Licenses and permits - - - Intergovernmental 4,766,011 - - - Charges for services - 2,888,221 -Use of money and property 45,555 1,151,907 101,290 5,090 Contributions - 253,177 - - Developer participation - - - Miscellaneous - 236,889 - - Total Revenues 4,811,566 4,530,194 101,290 5,090 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - 122,962 - Community services - 4,597,673 - - Engineering and public works 2,981,553 - - 850 Capital outlay 229,356 - 4,251,366 9,426 Debt service: Principal retirement - - - Interest and fiscal charges - - - - Total Expenditures 3,210,909 4,597,673 4,374,328 10,276 Excess(Deficiency)of Revenues Over(Under)Expenditures 1,600,657 (67,479) (4,273,038) (5,186) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 1,600,657 (67,479) (4,273,038) (5,186) Fund Balances, Beginning of Year 7,702,748 2,740,301 12,473,564 960,107 Fund Balances, End of Year $ 9,303,405 $ 2,672,822 $ 8,200,526 $ 954,921 136 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 (CONTINUED) Special Revenue Funds Landscape Community Maintenance Pedestrian Development Districts Transportation Grant Block Grant Revenues: Taxes $ 10,562,126 $ - $ - $ Licenses and permits 211,809 - - - Intergovernmental - - 46,596 718,048 Charges for services 33,167 - - - Use of money and property 118,264 108,944 - (3,524) Contributions 50,000 - - Developer participation - 8,051,072 - - Miscellaneous 1,520 - - 117,908 Total Revenues 10,976,886 8,160,016 46,596 832,432 Expenditures: Current: General government - - - - Public safety-police - - - Public safety-fire protection - - - - Community development 9,728,450 - - 906,632 Community services - - - - Engineering and public works 1,990 1,025,336 - Capital outlay 170,454 5,471,156 46,596 Debt service: Principal retirement - - - Interest and fiscal charges - - - - Total Expenditures 9,900,894 6,496,492 46,596 906,632 Excess(Deficiency)of Revenues Over(Under)Expenditures 1,075,992 1,663,524 - (74,200) Other Financing Sources(Uses): Transfers in 469,360 - 9,883 Transfers out - - - Total Other Financing Sources (Uses) 469,360 - 9,883 - Net Change in Fund Balances 1,545,352 1,663,524 9,883 (74,200) Fund Balances, Beginning of Year 15,908,684 22,789,940 (9,883) 1,218,426 Fund Balances, End of Year $ 17,454,036 $ 24,453,464 $ - $ 1,144,226 137 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 Special Revenue Funds San Sevaine/ Assessment Etiwanda Air Quality Administration Drainage SB 140 Improvement Revenues: Taxes $ - $ $ - $ - Licenses and permits - - - - Intergovernmental - - - 227,842 Charges for services - - - - Use of money and property 2,491 4,670 (369) 3,629 Contributions - - - - Developer participation - 93,756 - - Miscellaneous 951,600 - - - Total Revenues 954,091 98,426 (369) 231,471 Expenditures: Current: General government 888,243 - - 22,417 Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - 780 - - Capital outlay - - - 13,569 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 888,243 780 - 35,986 Excess(Deficiency)of Revenues Over(Under)Expenditures 65,848 97,646 (369) 195,485 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 65,848 97,646 (369) 195,485 Fund Balances, Beginning of Year 742,147 886,656 36,529 1,125,280 Fund Balances, End of Year $ 807,995 $ 984,302 $ 36,160 $ 1,320,765 138 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 (CONTINUED) Special Revenue Funds South Lower Masi Etiwanda Etiwanda Commerce Drainage Drainage Center Measure I Revenues: Taxes $ - $ $ - $ Licenses and permits - - - Intergovernmental - - 3,082,468 Charges for services - - - Use of money and property 2,950 2,943 2,295 23,330 Contributions - - - - Developer participation 217,965 - Miscellaneous - - - - Total Revenues 220,915 2,943 2,295 3,105,798 Expenditures: Current: General government - - - - Public safety-police - - - Public safety-fire protection - - - Community development - - - Community services - - - - Engineering and public works 180 390 - 1,442,847 Capital outlay - - - 2,591,665 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 180 390 - 4,034,512 Excess(Deficiency)of Revenues Over(Under)Expenditures 220,735 2,553 2,295 (928,714) Other Financing Sources(Uses): Transfers in - - - Transfers out - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 220,735 2,553 2,295 (928,714) Fund Balances, Beginning of Year 644,482 607,298 301,470 5,320,275 Fund Balances, End of Year $ 865,217 $ 609,851 $ 303,765 $ 4,391,561 139 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 Special Revenue Funds Proposition Used Oil Library 84-Park Bond Asset Recycling Services Act Forfeiture Grant Revenues: Taxes $ 4,337,116 $ $ - $ Licenses and permits - - Intergovernmental 10,487 - Charges for services 404,020 Use of money and property 10,065 635 Contributions 168,302 - Developer participation - - Miscellaneous 5,990 - Total Revenues 4,935,980 - 635 - Expenditures: Current: General government - - - Public safety-police - - 54,052 Public safety-fire protection - - - Community development - - - Community services 4,676,449 - - Engineering and public works - - - Capital outlay 7,802 - - Debt service: Principal retirement 7,552 - - Interest and fiscal charges 105 - - Total Expenditures 4,691,908 - 54,052 - Excess(Deficiency)of Revenues Over(Under)Expenditures 244,072 - (53,417) Other Financing Sources(Uses): Transfers in - 341 - Transfers out (37,935) - - Total Other Financing Sources (Uses) (37,935) 341 - - Net Change in Fund Balances 206,137 341 (53,417) Fund Balances, Beginning of Year 6,509,613 (341) 130,557 Fund Balances, End of Year $ 6,715,750 $ - $ 77,140 $ 140 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 (CONTINUED) Special Revenue Funds Community and Recreation Park COPS Centers Improvement Drainage Program Grant Impact Fee Fee Facilities Revenues: Taxes $ - $ - $ $ Licenses and permits - - Intergovernmental 378,009 Charges for services - - - Use of money and property (7,490) 1,650 2,448 17,654 Contributions - - - - Developer participation - 65,645 96,238 1,200,629 Miscellaneous - - - - Total Revenues 370,519 67,295 98,686 1,218,283 Expenditures: Current: General government - - - - Public safety-police 283,088 - Public safety-fire protection - - Community development - - Community services - - - Engineering and public works - - 157,088 Capital outlay 6,243 - 287,130 Debt service: Principal retirement - - - Interest and fiscal charges - - - Total Expenditures 289,331 - - 444,218 Excess(Deficiency)of Revenues Over(Under)Expenditures 81,188 67,295 98,686 774,065 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 81,188 67,295 98,686 774,065 Fund Balances, Beginning of Year 437,073 449,620 659,063 4,350,597 Fund Balances, End of Year $ 518,261 $ 516,915 $ 757,749 $ 5,124,662 141 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 Special Revenue Funds Library AB 2928 Services& Traffic Litter CA State Technologies Congestion Reduction Library Act Relief Grant Revenues: Taxes $ - $ - $ $ Licenses and permits -Intergovernmental 15,657 56,411 Charges for services - - - Use of money and property (1,714) (399) (3,209) (175) Contributions - - - Developer participation - - Miscellaneous - - - Total Revenues 13,943 (399) (3,209) 56,236 Expenditures: Current: General government - - - Public safety-police - - Public safety-fire protection - - Community development - - Community services 16,757 - - - Engineering and public works - - 80 56,236 Capital outlay - - - - Debt service: Principal retirement - - Interest and fiscal charges - - - - Total Expenditures 16,757 - 80 56,236 Excess(Deficiency)of Revenues Over(Under)Expenditures (2,814) (399) (3,289) - Other Financing Sources(Uses): Transfers in - - Transfers out - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (2,814) (399) (3,289) Fund Balances, Beginning of Year 29,575 36,885 292,870 Fund Balances, End of Year $ 26,761 $ 36,486 $ 289,581 $ - 142 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 (CONTINUED) Special Revenue Funds Energy Efficient& Senior Conservation SAFETEA-LU Outreach Underground Block Grant Grant Grant Utilities Revenues: Taxes $ $ $ - $ Licenses and permits - - - Intergovernmental - 1,652,676 - - Charges for services - - - 102,686 Use of money and property - 263 - 56,063 Contributions - - - - Developer participation - - - Miscellaneous - - - - Total Revenues - 1,652,939 - 158,749 Expenditures: Current: General government - - - - Public safety-police - - - Public safety-fire protection - - - Community development - - - Community services - - - - Engineering and public works - - - 226,057 Capital outlay - 1,652,939 - - Debt service: Principal retirement - - - Interest and fiscal charges - - - - Total Expenditures - 1,652,939 - 226,057 Excess(Deficiency)of Revenues Over(Under)Expenditures - - - (67,308) Other Financing Sources(Uses): Transfers in - - - Transfers out - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - - - (67,308) Fund Balances, Beginning of Year (96) - (5,267) 10,702,349 Fund Balances, End of Year $ (96) $ - $ (5,267) $ 10,635,041 143 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 Special Revenue Funds Safe Routes Citywide COPS Secure to School Foothill Blvd. Infrastructure Our Schools Program Maintenance Improvement Grant Revenues: Taxes $ $ $ - $ Licenses and permits - - Intergovernmental 20,437 - 1,362,649 Charges for services - - - - Use of money and property - 132,766 54 Contributions - - - Developer participation - 8,971 Miscellaneous - - 198,582 - Total Revenues 20,437 - 1,702,968 54 Expenditures: Current: General government - - - - Public safety-police - - - Public safety-fire protection - - - Community development - - - Community services - - - Engineering and public works 25,837 - 78,111 Capital outlay - - 5,189,752 Debt service: Principal retirement - - Interest and fiscal charges - - Total Expenditures 25,837 - 5,267,863 - Excess(Deficiency)of Revenues Over(Under)Expenditures (5,400) - (3,564,895) 54 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - (9,883) Total Other Financing Sources (Uses) - - (9,883) - Net Change in Fund Balances (5,400) - (3,574,778) 54 Fund Balances, Beginning of Year (69,183) (1,433) 27,614,838 (54) Fund Balances, End of Year $ (74,583) $ (1,433) $ 24,040,060 $ - 144 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 (CONTINUED) Special Revenue Funds CA State Library Staff Proposition Innovation The Big Read Drink, Drive, 1 B-SLPP Fund Grant Library Grant Lose Grant Revenues: Taxes $ $ - $ $ - Licenses and permits - - Intergovernmental - 701 - Charges for services - -Use of money and property 10 1,189 - Contributions - - - Developer participation - - - Miscellaneous - - - Total Revenues 10 1,890 - - Expenditures: Current: General government - - - Public safety-police - - - Public safety-fire protection - - - Community development - -Community services - 1,890 - Engineering and public works - - - Capital outlay - - - Debt service: Principal retirement - - - Interest and fiscal charges - - - Total Expenditures - 1,890 - - Excess(Deficiency)of Revenues Over(Under)Expenditures 10 - - Other Financing Sources(Uses): Transfers in - - - Transfers out - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 10 - - - Fund Balances, Beginning of Year 3,049 - 20,000 - Fund Balances, End of Year $ 3,059 $ - $ 20,000 $ - 145 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 Special Revenue Funds Homeland Public Henderson/ Security Grant• Resource Proposition Wardman Fire Grants 1 B Drainage Revenues: Taxes $ $ - $ $ - Licenses and permits - - Intergovernmental - - Charges for services -Use of money and property - 1,166 (10,735) Contributions - - - Developer participation - - Miscellaneous 495 - - Total Revenues - 495 1,166 (10,735) Expenditures: Current: General government - - - Public safety-police - - Public safety-fire protection - - - Community development - 70 - Community services - - - Engineering and public works - - Capital outlay - - Debt service: Principal retirement - - - Interest and fiscal charges - - - - Total Expenditures - - 70 - Excess(Deficiency)of Revenues Over(Under)Expenditures - 495 1,096 (10,735) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - 495 1,096 (10,735) Fund Balances, Beginning of Year - (14,848) 242,354 978,077 Fund Balances, End of Year $ - $ (14,353) $ 243,450 $ 967,342 146 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 (CONTINUED) Special Revenue Funds Proposition Freedom Integrated 42-Traffic Courtyard Waste Federal Grant Congestion Resource Management Fund-Dreier Relief Grants Revenues: Taxes $ 1,327,107 $ - $ - $ Licenses and permits 34,358 - Intergovernmental - - - Charges for services - -Use of money and property 11,844 (123) - Contributions - - - Developer participation - - - Miscellaneous 657,429 - - Total Revenues 2,030,738 (123) - - Expenditures: Current: General government - - - Public safety-police - - - Public safety-fire protection - - - Community development - - - Community services - - - Engineering and public works 1,183,544 - - Capital outlay - - - Debt service: Principal retirement - - - Interest and fiscal charges - - - Total Expenditures 1,183,544 - - - Excess(Deficiency)of Revenues Over(Under)Expenditures 847,194 (123) - Other Financing Sources(Uses): Transfers in - - - Transfers out (350,170) - (206,300) Total Other Financing Sources (Uses) (350,170) - (206,300) - Net Change in Fund Balances 497,024 (123) (206,300) Fund Balances, Beginning of Year 3,313,753 (54) 206,300 Fund Balances, End of Year $ 3,810,777 $ (177) $ - $ 147 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 Special Revenue Funds Emergency Justice Management Homeland Used Oil Assistance Performance Security Grant- Recycling Grant Grant Police Program Revenues: Taxes $ $ $ $ - Licenses and permits - - Intergovernmental 47,683 27,028 9,081 38,921 Charges for services - - - - Use of money and property 141 - (114) Contributions - - - Developer participation - - Miscellaneous - - - - Total Revenues 47,824 27,028 9,081 38,807 Expenditures: Current: General government - - - - Public safety-police 4,961 - 11,151 - Public safety-fire protection - 27,028 - - Community development - - 38,807 Community services - - - Engineering and public works - - - Capital outlay 42,863 - - Debt service: Principal retirement - - - Interest and fiscal charges - - - - Total Expenditures 47,824 27,028 11,151 38,807 Excess(Deficiency)of Revenues Over(Under)Expenditures - - (2,070) - Other Financing Sources(Uses): Transfers in - - Transfers out - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances - - (2,070) - Fund Balances, Beginning of Year 2,144 (28) (37) 4,065 Fund Balances, End of Year $ 2,144 $ (28) $ (2,107) $ 4,065 148 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 (CONTINUED) Special Revenue Funds Library Impact Police Impact Animal Center Park Land Fee Fee Impact Fee Acquisition Revenues: Taxes $ - $ $ - $ Licenses and permits - - - Intergovernmental - - - Charges for services 43,401 113,023 9,534 - Use of money and property 1,689 613 349 4,105 Contributions - - - - Developer participation - - - 190,389 Miscellaneous - - - - Total Revenues 45,090 113,636 9,883 194,494 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 45,090 113,636 9,883 194,494 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 45,090 113,636 9,883 194,494 Fund Balances, Beginning of Year 423,913 232,917 86,261 1,155,705 Fund Balances, End of Year $ 469,003 $ 346,553 $ 96,144 $ 1,350,199 149 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 Capital Projects Funds CFD 2000-01 Assessment Assessment Assessment South District 82-1 District 84-1 District 86-2 Etiwanda Revenues: Taxes $ - $ $ - $ Licenses and permits - - - Intergovernmental - - Charges for services -Use of money and property 85 5,425 - Contributions - - - Developer participation - - Miscellaneous - - - Total Revenues 85 5,425 - - Expenditures: Current: General government - 310 - 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 - 310 - - Excess(Deficiency)of Revenues Over(Under)Expenditures 85 5,115 - Other Financing Sources(Uses): Transfers in - - - Transfers out - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 85 5,115 - - Fund Balances, Beginning of Year 13,203 1,122,223 (41,128) 76 Fund Balances, End of Year $ 13,288 $ 1,127,338 $ (41,128) $ 76 150 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 (CONTINUED) Capital Projects Funds Public Library Etiwanda Bond Act- Equestrian CFD 2001-01 CFD 2003-01 2000 Facility Revenues: Taxes $ - $ - $ $ - Licenses and permits - - - Intergovernmental - - - Charges for services - - - Use of money and property (35,400) (1,140) - 3,228 Contributions - - - Developer participation - - - Miscellaneous - - - Total Revenues (35,400) (1,140) - 3,228 Expenditures: Current: General government - - - Public safety-police - - - Public safety-fire protection - - - Community development 140 - 190 Community services - - - Engineering and public works - - - Capital outlay - - - Debt service: Principal retirement - - - Interest and fiscal charges - - - Total Expenditures 140 - - 190 Excess(Deficiency)of Revenues Over(Under)Expenditures (35,540) (1,140) - 3,038 Other Financing Sources(Uses): Transfers in - - - Transfers out - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (35,540) (1,140) - 3,038 Fund Balances, Beginning of Year 497,299 175,077 6,128 677,407 Fund Balances, End of Year $ 461,759 $ 173,937 $ 6,128 $ 680,445 151 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2018 Capital Projects Funds Total CFD 2004-01 CFD 2003-01 CFD 2006-01 CFD 2006-02 Nonmajor Rancho Cultural Vintner's Amador on Governmental Etiwanda Center Grove Route 66 Funds Revenues: Taxes $ - $ $ - $ - $ 16,226,349 Licenses and permits - - - 246,167 Intergovernmental - - - 12,460,705 Charges for services - - - 3,594,052 Use of money and property 347 1,441 - 20 1,762,216 Contributions - - - - 471,479 Developer participation - - - 9,924,665 Miscellaneous - - - 2,170,413 Total Revenues 347 1,441 - 20 46,856,046 Expenditures: Current: General government - - - - 910,970 Public safety-police - - - 353,252 Public safety-fire protection - - - 27,028 Community development - - - 10,797,251 Community services - - - 9,292,769 Engineering and public works - - - 7,180,879 Capital outlay - - - - 19,970,317 Debt service: Principal retirement - - - - 7,552 Interest and fiscal charges - - - - 105 Total Expenditures - - - - 48,540,123 Excess(Deficiency)of Revenues Over(Under)Expenditures 347 1,441 - 20 (1,684,077) Other Financing Sources(Uses): Transfers in - - - - 479,584 Transfers out - - - - (604,288) Total Other Financing Sources (Uses) - - - - (124,704) Net Change in Fund Balances 347 1,441 - 20 (1,808,781) Fund Balances, Beginning of Year 48,457 5,241 1,848 6,084 133,750,176 Fund Balances, End of Year $ 48,804 $ 6,682 $ 1,848 $ 6,104 $ 131,941,395 152 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) GAS TAX YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $7,702,748 $ 7,702,748 $ 7,702,748 $ Resources(Inflows): Intergovernmental 4,880,310 4,837,940 4,766,011 (71,929) Use of money and property 80,190 110,850 45,555 (65,295) Miscellaneous - - - Amounts Available for Appropriations 12,663,248 12,651,538 12,514,314 (137,224) Charges to Appropriation(Outflow): Engineering and public works 2,576,960 3,300,118 2,990,268 309,850 Capital outlay 3,115,000 3,114,262 2,911,605 202,657 Total Charges to Appropriations 5,691,960 6,414,380 5,901,873 512,507 Budgetary Fund Balance,June 30(Budgetary Basis) $6,971,288 $ 6,237,158 6,612,441 $ 375,283 Encumbrances 2,690,964 Budgetary Fund Balance,June 30(GAAP Basis) $9,303,405 153 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) RECREATION YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $2,740,301 $ 2,740,301 $ 2,740,301 $ Resources(Inflows): Charges for services 3,102,910 2,959,470 2,888,221 (71,249) Use of money and property 1,088,950 1,071,750 1,151,907 80,157 Contributions 239,790 262,370 253,177 (9,193) Miscellaneous 207,150 261,780 236,889 (24,891) Amounts Available for Appropriations 7,379,101 7,295,671 7,270,495 (25,176) Charges to Appropriation(Outflow): Community services 4,968,520 4,961,751 4,610,026 351,725 Capital outlay - 251,109 250,000 1,109 Total Charges to Appropriations 4,968,520 5,212,860 4,860,026 352,834 Budgetary Fund Balance,June 30(Budgetary Basis) $2,410,581 $ 2,082,811 2,410,469 $ 327,658 Encumbrances 262,353 Budgetary Fund Balance,June 30(GAAP Basis) $2,672,822 154 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PARK DEVELOPMENT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 12,473,564 $12,473,564 $ 12,473,564 $ Resources(Inflows): Use of money and property 145,210 184,800 101,290 (83,510) Amounts Available for Appropriations 12,618,774 12,658,364 12,574,854 (83,510) Charges to Appropriation(Outflow): Community development 127,090 140,740 122,962 17,778 Capital outlay 1,343,890 4,797,700 4,395,097 402,603 Total Charges to Appropriations 1,470,980 4,938,440 4,518,059 420,381 Budgetary Fund Balance,June 30(Budgetary Basis) $ 11,147,794 $ 7,719,924 8,056,795 $ 336,871 Encumbrances 143,731 Budgetary Fund Balance,June 30(GAAP Basis) $ 8,200,526 155 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) BEAUTIFICATION YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 960,107 $ 960,107 $ 960,107 $ Resources(Inflows): Use of money and property 9,440 15,760 5,090 (10,670) Amounts Available for Appropriations 969,547 975,867 965,197 (10,670) Charges to Appropriation (Outflow): Engineering and public works 850 850 850 - Capital outlay 500,000 50,000 9,426 40,574 Total Charges to Appropriations 500,850 50,850 10,276 40,574 Budgetary Fund Balance,June 30(Budgetary Basis) $ 468,697 $ 925,017 954,921 $ 29,904 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 954,921 156 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LANDSCAPE MAINTENANCE DISTRICTS YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 15,908,684 $ 15,908,684 $ 15,908,684 $ - Resources(Inflows): Taxes 10,541,360 10,541,360 10,562,126 20,766 Licenses and permits 240,000 240,000 211,809 (28,191) Charges for services 54,720 54,720 33,167 (21,553) Use of money and property 209,360 278,940 118,264 (160,676) Contributions 50,000 50,000 50,000 Miscellaneous 3,940 3,940 1,520 (2,420) Transfers in 469,360 469,360 469,360 Amounts Available for Appropriations 27,477,424 27,547,004 27,354,930 (192,074) Charges to Appropriation(Outflow): Community development 11,255,560 11,241,354 10,316,291 925,063 Engineering and public works 1,990 1,990 1,990 - Capital outlay 955,700 414,376 406,634 7,742 Total Charges to Appropriations 12,213,250 11,657,720 10,724,915 932,805 Budgetary Fund Balance,June 30(Budgetary Basis) $ 15,264,174 $ 15,889,284 16,630,015 $ 740,731 Encumbrances 824,021 Budgetary Fund Balance,June 30(GAAP Basis) $ 17,454,036 157 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) TRANSPORTATION YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 22,789,940 $ 22,789,940 $ 22,789,940 $ - Resources(Inflows): Use of money and property 245,840 360,460 108,944 (251,516) Developer participation 3,000,000 7,622,720 8,051,072 428,352 Amounts Available for Appropriations 26,035,780 30,773,120 30,949,956 176,836 Charges to Appropriation(Outflow): Engineering and public works 1,035,830 1,065,848 1,025,336 40,512 Capital outlay 2,185,940 7,878,132 7,154,855 723,277 Total Charges to Appropriations 3,221,770 8,943,980 8,180,191 763,789 Budgetary Fund Balance,June 30(Budgetary Basis) $ 22,814,010 $ 21,829,140 22,769,765 $ 940,625 Encumbrances 1,683,699 Budgetary Fund Balance,June 30(GAAP Basis) $ 24,453,464 158 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PEDESTRIAN GRANT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ (9,883) $ (9,883) $ (9,883) $ - Resources(Inflows): Intergovernmental - 46,600 46,596 (4) Transfers in - 9,890 9,883 (7) Amounts Available for Appropriations (9,883) 46,607 46,596 (11) Charges to Appropriation(Outflow): Capital outlay 46,600 46,596 4 Total Charges to Appropriations - 46,600 46,596 4 Budgetary Fund Balance,June 30(Budgetary Basis) $ (9,883) $ 7 - $ (7) Encumbrances Budgetary Fund Balance,June 30(GAAP Basis) $ - 159 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $1,218,426 $ 1,218,426 $ 1,218,426 $ Resources(Inflows): Intergovernmental 835,300 1,333,640 718,048 (615,592) Use of money and property - - (3,524) (3,524) Miscellaneous 350,000 350,000 117,908 (232,092) Amounts Available for Appropriations 2,403,726 2,902,066 2,050,858 (851,208) Charges to Appropriation(Outflow): Community development 1,939,140 1,683,640 914,488 769,152 Total Charges to Appropriations 1,939,140 1,683,640 914,488 769,152 Budgetary Fund Balance,June 30(Budgetary Basis) $ 464,586 $ 1,218,426 1,136,370 $ (82,056) Encumbrances 7,856 Budgetary Fund Balance,June 30(GAAP Basis) $ 1,144,226 160 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT ADMINISTRATION YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 742,147 $ 742,147 $ 742,147 $ Resources(Inflows): Use of money and property 6,400 10,230 2,491 (7,739) Miscellaneous 951,600 951,600 951,600 Amounts Available for Appropriations 1,700,147 1,703,977 1,696,238 (7,739) Charges to Appropriation (Outflow): General government 958,000 986,110 897,243 88,867 Total Charges to Appropriations 958,000 986,110 897,243 88,867 Budgetary Fund Balance,June 30(Budgetary Basis) $ 742,147 $ 717,867 798,995 $ 81,128 Encumbrances 9,000 Budgetary Fund Balance,June 30(GAAP Basis) $ 807,995 161 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SAN SEVAINE/ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 886,656 $ 886,656 $ 886,656 $ - Resources(Inflows): Use of money and property 11,540 14,480 4,670 (9,810) Developer participation 75,000 100,000 93,756 (6,244) Amounts Available for Appropriations 973,196 1,001,136 985,082 (16,054) Charges to Appropriation (Outflow): Engineering and public works 50,780 780 780 Total Charges to Appropriations 50,780 780 780 Budgetary Fund Balance,June 30(Budgetary Basis) $ 922,416 $ 1,000,356 984,302 $ (16,054) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 984,302 162 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $1,125,280 $ 1,125,280 $ 1,125,280 $ Resources(Inflows): Intergovernmental 1,696,970 1,696,970 227,842 (1,469,128) Use of money and property 8,820 16,760 3,629 (13,131) Amounts Available for Appropriations 2,831,070 2,839,010 1,356,751 (1,482,259) Charges to Appropriation(Outflow): General government 24,360 27,153 23,827 3,326 Capital outlay 2,014,470 1,346,707 1,202,032 144,675 Total Charges to Appropriations 2,038,830 1,373,860 1,225,859 148,001 Budgetary Fund Balance,June 30(Budgetary Basis) $ 792,240 $ 1,465,150 130,892 $ (1,334,258) Encumbrances 1,189,873 Budgetary Fund Balance,June 30(GAAP Basis) $ 1,320,765 163 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SOUTH ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 644,482 $ 644,482 $ 644,482 $ Resources(Inflows): Use of money and property 7,560 12,130 2,950 (9,180) Developer participation - 220,000 217,965 (2,035) Amounts Available for Appropriations 652,042 876,612 865,397 (11,215) Charges to Appropriation(Outflow): Engineering and public works 180 180 180 - Total Charges to Appropriations 180 180 180 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 651,862 $ 876,432 865,217 $ (11,215) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 865,217 164 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LOWER ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 607,298 $ 607,298 $ 607,298 $ - Resources(Inflows): Use of money and property 6,980 9,140 2,943 (6,197) Amounts Available for Appropriations 614,278 616,438 610,241 (6,197) Charges to Appropriation (Outflow): Engineering and public works 25,390 390 390 Total Charges to Appropriations 25,390 390 390 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 588,888 $ 616,048 609,851 $ (6,197) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 609,851 165 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) MASI COMMERCE CENTER YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 301,470 $ 301,470 $ 301,470 $ - Resources(Inflows): Use of money and property 130 170 2,295 2,125 Amounts Available for Appropriations 301,600 301,640 303,765 2,125 Budgetary Fund Balance,June 30(Budgetary Basis) $ 301,600 $ 301,640 303,765 $ 2,125 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 303,765 166 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) MEASUREI YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 as restated $ 5,320,275 $ 5,320,275 $ 5,320,275 $ - Resources(Inflows): Intergovernmental 3,029,740 3,029,740 3,082,468 52,728 Use of money and property 60,530 60,160 23,330 (36,830) Amounts Available for Appropriations 8,410,545 8,410,175 8,426,073 15,898 Charges to Appropriation(Outflow): Engineering and public works 1,529,170 1,588,790 1,500,897 87,893 Capital outlay 2,550,000 5,836,160 3,963,608 1,872,552 Total Charges to Appropriations 4,079,170 7,424,950 5,464,505 1,960,445 Budgetary Fund Balance,June 30(Budgetary Basis) $ 4,331,375 $ 985,225 2,961,568 $ 1,976,343 Encumbrances 1,429,993 Budgetary Fund Balance,June 30(GAAP Basis) $4,391,561 167 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIBRARY SERVICES YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 6,509,613 $ 6,509,613 $ 6,509,613 $ - Resources(Inflows): Taxes 4,209,860 4,288,670 4,337,116 48,446 Intergovernmental 25,000 60,000 10,487 (49,513) Charges for services 455,100 381,000 404,020 23,020 Use of money and property 58,930 80,870 10,065 (70,805) Contributions 195,000 177,000 168,302 (8,698) Miscellaneous 22,920 7,690 5,990 (1,700) Amounts Available for Appropriations 11,476,423 11,504,843 11,445,593 (59,250) Charges to Appropriation(Outflow): Community services 4,884,570 5,063,855 4,724,714 339,141 Capital outlay 402,350 127,915 7,802 120,113 Debt service: Principal retirement 13,650 11,680 7,552 4,128 Interest and fiscal charges - 120 105 15 Transfers out - 37,940 37,935 5 Total Charges to Appropriations 5,300,570 5,241,510 4,778,108 463,402 Budgetary Fund Balance,June 30(Budgetary Basis) $ 6,175,853 $ 6,263,333 6,667,485 $ 404,152 Encumbrances 48,265 Budgetary Fund Balance,June 30(GAAP Basis) $ 6,715,750 168 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PROPOSITION 84-PARK BOND ACT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ (341) $ (341) $ (341) $ - Resources(Inflows): Transfers in - 350 341 (9) Amounts Available for Appropriations (341) 9 - (9) Budgetary Fund Balance,June 30(Budgetary Basis) $ (341) $ 9 - $ (9) Encumbrances Budgetary Fund Balance,June 30(GAAP Basis) $ - 169 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSET FORFEITURE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 130,557 $ 130,557 $ 130,557 $ - Resources(Inflows): Use of money and property 1,850 1,360 635 (725) Amounts Available for Appropriations 132,407 131,917 131,192 (725) Charges to Appropriation(Outflow): Public safety-Police 7,590 60,052 54,052 6,000 Capital outlay - 8 - 8 Total Charges to Appropriations 7,590 60,060 54,052 6,008 Budgetary Fund Balance,June 30(Budgetary Basis) $ 124,817 $ 71,857 77,140 $ 5,283 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 77,140 170 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) USED OIL RECYCLING GRANT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ $ - $ $ - Resources(Inflows): Intergovernmental 370 (370) Amounts Available for Appropriations - 370 - (370) Charges to Appropriation(Outflow): Engineering and public works - 370 - 370 Total Charges to Appropriations - 370 - 370 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 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 437,073 $ 437,073 $ 437,073 $ - Resources(Inflows): Intergovernmental 200,000 200,000 378,009 178,009 Use of money and property - - (7,490) (7,490) Amounts Available for Appropriations 637,073 637,073 807,592 170,519 Charges to Appropriation (Outflow): Public safety-Police 308,000 315,740 283,088 32,652 Capital outlay - 6,330 6,243 87 Total Charges to Appropriations 308,000 322,070 289,331 32,739 Budgetary Fund Balance,June 30(Budgetary Basis) $ 329,073 $ 315,003 518,261 $ 203,258 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 518,261 172 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) COMMUNITY AND RECREATION CENTERS IMPACT FEE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 449,620 $ 449,620 $ 449,620 $ Resources(Inflows): Use of money and property 710 7,010 1,650 (5,360) Developer participation 50,000 70,000 65,645 (4,355) Amounts Available for Appropriations 500,330 526,630 516,915 (9,715) Budgetary Fund Balance,June 30(Budgetary Basis) $ 500,330 $ 526,630 516,915 $ (9,715) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 516,915 173 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PARKIMPROVEMENTFEE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 659,063 $ 659,063 $ 659,063 $ - Resources(Inflows): Use of money and property 1,020 10,270 2,448 (7,822) Developer participation 70,000 100,000 96,238 (3,762) Amounts Available for Appropriations 730,083 769,333 757,749 (11,584) Budgetary Fund Balance,June 30(Budgetary Basis) $ 730,083 $ 769,333 757,749 $ (11,584) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 757,749 174 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) DRAINAGE FACILITIES YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 4,350,597 $ 4,350,597 $4,350,597 $ Resources(Inflows): Use of money and property 42,090 69,630 17,654 (51,976) Developer participation 175,000 1,315,000 1,200,629 (114,371) Amounts Available for Appropriations 4,567,687 5,735,227 5,568,880 (166,347) Charges to Appropriation(Outflow): Engineering and public works 286,590 159,817 157,088 2,729 Capital outlay 1,005,000 849,703 644,671 205,032 Total Charges to Appropriations 1,291,590 1,009,520 801,759 207,761 Budgetary Fund Balance,June 30(Budgetary Basis) $ 3,276,097 $ 4,725,707 4,767,121 $ 41,414 Encumbrances 357,541 Budgetary Fund Balance,June 30(GAAP Basis) $ 5,124,662 175 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CA STATE LIBRARY YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 29,575 $ 29,575 $ 29,575 $ - Resources(Inflows): Intergovernmental - 40,000 15,657 (24,343) Use of money and property - - (1,714) (1,714) Amounts Available for Appropriations 29,575 69,575 43,518 (26,057) Charges to Appropriation(Outflow): Community services 18,000 18,000 16,757 1,243 Total Charges to Appropriations 18,000 18,000 16,757 1,243 Budgetary Fund Balance,June 30(Budgetary Basis) $ 11,575 $ 51,575 26,761 $ (24,814) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 26,761 176 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) AB 2928 TRAFFIC CONGESTION RELIEF YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 292,870 $ 292,870 $ 292,870 $ Resources(Inflows): Use of money and property - - (3,209) (3,209) Amounts Available for Appropriations 292,870 292,870 289,661 (3,209) Charges to Appropriation(Outflow): Public works 80 80 80 Total Charges to Appropriations 80 80 80 Budgetary Fund Balance,June 30(Budgetary Basis) $ 292,790 $ 292,790 289,581 $ (3,209) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 289,581 177 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LITTER REDUCTION GRANT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental 50,070 55,710 56,411 701 Use of money and property - - (175) (175) Amounts Available for Appropriations 50,070 55,710 56,236 526 Charges to Appropriation(Outflow): Engineering and public works 49,500 58,710 56,236 2,474 Total Charges to Appropriations 49,500 58,710 56,236 2,474 Budgetary Fund Balance,June 30(Budgetary Basis) $ 570 $ (3,000) - $ 3,000 Encumbrances Budgetary Fund Balance,June 30(GAAP Basis) $ 178 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SAFETEA-LU GRANT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental 2,127,750 2,127,750 1,652,676 (475,074) Use of money and property - - 263 263 Amounts Available for Appropriations 2,127,750 2,127,750 1,652,939 (474,811) Charges to Appropriations(Outflow): Capital outlay 2,127,750 2,127,750 1,652,939 474,811 Total Charges to Appropriations 2,127,750 2,127,750 1,652,939 474,811 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - - $ - Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 179 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) UNDERGROUND UTILITIES YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $10,702,349 $ 10,702,349 $10,702,349 $ - Resources(Inflows): Charges for services 25,000 100,000 102,686 2,686 Use of money and property 137,750 163,310 56,063 (107,247) Amounts Available for Appropriations 10,865,099 10,965,659 10,861,098 (104,561) Charges to Appropriations(Outflow): Engineering and public works 3,310 226,057 226,057 - Capital outlay 130,000 113,743 - 113,743 Total Charges to Appropriations 133,310 339,800 226,057 113,743 Budgetary Fund Balance,June 30(Budgetary Basis) $10,731,789 $ 10,625,859 10,635,041 $ 9,182 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $10,635,041 180 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SAFE ROUTES TO SCHOOL PROGRAM YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ (69,183) $ (69,183) $ (69,183) $ Resources(Inflows): Intergovernmental 178,070 178,070 20,437 (157,633) Amounts Available for Appropriations 108,887 108,887 (48,746) (157,633) Charges to Appropriations(Outflow): Engineering and public works 110,520 26,380 25,837 543 Total Charges to Appropriations 201,320 26,380 25,837 543 Budgetary Fund Balance,June 30(Budgetary Basis) $ (92,433) $ 82,507 (74,583) $ (157,090) Encumbrances Budgetary Fund Balance,June 30(GAAP Basis) $ (74,583) 181 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CITYWIDE INFRASTRUCTURE IMPROVEMENT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 27,614,838 $27,614,838 $27,614,838 $ - Resources(Inflows): Intergovernmental 1,250,000 1,559,000 1,362,649 (196,351) Use of money and property 295,070 387,700 132,766 (254,934) Developer participation - 17,000 8,971 (8,029) Miscellaneous - 107,180 198,582 91,402 Amounts Available for Appropriations 29,159,908 29,685,718 29,317,806 (367,912) Charges to Appropriations(Outflow): Engineering and public works 105,370 106,294 99,111 7,183 Capital outlay 4,275,000 7,433,286 6,636,505 796,781 Transfers out - 9,890 9,883 7 Total Charges to Appropriations 4,380,370 7,549,470 6,745,499 803,971 Budgetary Fund Balance,June 30(Budgetary Basis) $ 24,779,538 $22,136,248 22,572,307 $ 436,059 Encumbrances 1,467,753 Budgetary Fund Balance,June 30(GAAP Basis) $24,040,060 182 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PROPOSITION 1 B-SLPP YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 3,049 $ 3,049 $ 3,049 $ - Resources(Inflows): Intergovernmental 19,920 19,920 - (19,920) Use of money and property - 50 10 (40) Amounts Available for Appropriations 22,969 23,019 3,059 (19,960) Charges to Appropriations(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) $ 3,049 $ 3,099 3,059 $ (40) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 3,059 183 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CA STATE LIBRARY STAFF INNOVATION FUND GRANT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ - $ - $ - $ Resources(Inflows): Intergovernmental 71,950 71,950 701 (71,249) Use of money and property 2,560 3,790 1,189 (2,601) Amounts Available for Appropriations 74,510 75,740 1,890 (73,850) Charges to Appropriations(Outflow): Parks and recreation 74,510 74,510 1,890 72,620 Total Charges to Appropriations 74,510 74,510 1,890 72,620 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ 1,230 - $ (1,230) Encumbrances Budgetary Fund Balance,June 30(GAAP Basis) $ 184 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PUBLIC RESOURCE GRANTS YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ (14,848) $ (14,848) $ (14,848) $ Resources(Inflows): Intergovernmental 9,730 9,730 - (9,730) Contributions 9,510 9,510 - (9,510) Miscellaneous 360 360 495 135 Amounts Available for Appropriations 4,752 4,752 (14,353) (19,105) Charges to Appropriations(Outflow): General government 9,730 - Total Charges to Appropriations 9,730 - - - Budgetary Fund Balance,June 30(Budgetary Basis) $ (4,978) $ 4,752 (14,353) $ (19,105) Encumbrances Budgetary Fund Balance,June 30(GAAP Basis) $ (14,353) 185 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PROPOSITION 113 YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 242,354 $ 242,354 $ 242,354 $ Resources(Inflows): Use of money and property 2,850 3,650 1,166 (2,484) Amounts Available for Appropriations 245,204 246,004 243,520 (2,484) Charges to Appropriations(Outflow): Community development 70 70 70 Total Charges to Appropriations 70 70 70 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 245,134 $ 245,934 243,450 $ (2,484) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 243,450 186 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) INTEGRATED WASTE MANAGEMENT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $3,313,753 $ 3,313,753 $ 3,313,753 $ - Resources(Inflows): Taxes 1,254,470 1,272,410 1,327,107 54,697 Licenses and permits 34,000 34,000 34,358 358 Use of money and property 31,830 43,040 11,844 (31,196) Miscellaneous 525,000 525,000 657,429 132,429 Amounts Available for Appropriations 5,159,053 5,188,203 5,344,491 156,288 Charges to Appropriations(Outflow): Engineering and public works 1,327,550 1,278,580 1,228,543 50,037 Transfers out 350,170 350,170 350,170 - Total Charges to Appropriations 1,677,720 1,628,750 1,578,713 50,037 Budgetary Fund Balance,June 30(Budgetary Basis) $3,481,333 $ 3,559,453 3,765,778 $ 206,325 Encumbrances 44,999 Budgetary Fund Balance,June 30(GAAP Basis) $3,810,777 187 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PROPOSITION 42-TRAFFIC CONGESTION MITIGATION YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 206,300 $ 206,300 $ 206,300 $ Resources(Inflows): Use of money and property 2,430 3,110 - (3,110) Amounts Available for Appropriations 208,730 209,410 206,300 (3,110) Charges to Appropriations(Outflow): Engineering and public works 160 160 - 160 Transfers out - 208,010 206,300 1,710 Total Charges to Appropriations 160 208,170 206,300 1,870 Budgetary Fund Balance,June 30(Budgetary Basis) $ 208,570 $ 1,240 - $ (1,240) Encumbrances Budgetary Fund Balance,June 30(GAAP Basis) $ - 188 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) FREEDOM COURTYARD RESOURCE GRANT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ - $ - $ $ - Resources(Inflows): Use of money and property 30 40 (40) Amounts Available for Appropriations 30 40 - (40) Budgetary Fund Balance,June 30(Budgetary Basis) $ 30 $ 40 $ (40) Encumbrances Budgetary Fund Balance,June 30(GAAP Basis) $ 189 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 2,144 $ 2,144 $ 2,144 $ - Resources(Inflows): Intergovernmental 47,000 47,990 47,683 (307) Use of money and property - - 141 141 Amounts Available for Appropriations 49,144 50,134 49,968 (166) Charges to Appropriations(Outflow): Public safety - 5,121 4,961 160 Capital outlay 47,000 42,869 42,863 6 Total Charges to Appropriations 47,000 47,990 47,824 166 Budgetary Fund Balance,June 30(Budgetary Basis) $ 2,144 $ 2,144 2,144 $ - Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 2,144 190 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) EMERGENCY MANAGEMENT PERFORMANCE GRANT YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ (28) $ (28) $ (28) $ - Resources(Inflows): Intergovernmental 33,220 27,030 27,028 (2) Amounts Available for Appropriations 33,192 27,002 27,000 (2) Charges to Appropriations(Outflow): Public safety 33,220 27,030 27,028 2 Total Charges to Appropriations 33,220 27,030 27,028 2 Budgetary Fund Balance,June 30(Budgetary Basis) $ (28) $ (28) (28) $ - Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (28) 191 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) HOMELAND SECURITY GRANT-POLICE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ (37) $ (37) $ (37) $ Resources(Inflows): Intergovernmental 68,070 40,160 9,081 (31,079) Amounts Available for Appropriations 68,033 40,123 9,044 (31,079) Charges to Appropriations(Outflow): Public safety 2,070 18,970 11,151 7,819 Capital outlay 66,000 29,000 26,488 2,512 Total Charges to Appropriations 68,070 47,970 37,639 10,331 Budgetary Fund Balance,June 30(Budgetary Basis) $ (37) $ (7,847) (28,595) $ (20,748) Encumbrances 26,488 Budgetary Fund Balance,June 30(GAAP Basis) $ (2,107) 192 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) USED OIL RECYCLING PROGRAM YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 4,065 $ 4,065 $ 4,065 $ Resources(Inflows): Intergovernmental 40,260 47,780 38,921 (8,859) Use of money and property 230 490 (114) (604) Amounts Available for Appropriations 44,555 52,335 42,872 (9,463) Charges to Appropriations(Outflow): Community development 40,220 40,220 38,807 1,413 Total Charges to Appropriations 40,220 40,220 38,807 1,413 Budgetary Fund Balance,June 30(Budgetary Basis) $ 4,335 $ 12,115 4,065 $ (8,050) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 4,065 193 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIBRARY IMPACT FEE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 423,913 $ 423,913 $ 423,913 $ - Resources(Inflows): Charges for services 50,000 50,000 43,401 (6,599) Use of money and property 3,260 6,550 1,689 (4,861) Amounts Available for Appropriations 477,173 480,463 469,003 (11,460) Budgetary Fund Balance,June 30(Budgetary Basis) $ 477,173 $ 480,463 469,003 $ (11,460) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 469,003 194 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) POLICE IMPACT FEE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 232,917 $ 232,917 $ 232,917 $ - Resources(Inflows): Charges for services 40,000 40,000 113,023 73,023 Use of money and property 1,720 4,250 613 (3,637) Amounts Available for Appropriations 274,637 277,167 346,553 69,386 Budgetary Fund Balance,June 30(Budgetary Basis) $ 274,637 $ 277,167 346,553 $ 69,386 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 346,553 195 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ANIMAL CENTER IMPACT FEE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 86,261 $ 86,261 $ 86,261 $ Resources(Inflows): Charges for services 15,000 15,000 9,534 (5,466) Use of money and property 730 1,340 349 (991) Amounts Available for Appropriations 101,991 102,601 96,144 (6,457) Budgetary Fund Balance,June 30(Budgetary Basis) $ 101,991 $ 102,601 96,144 $ (6,457) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 96,144 196 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PARK LAND ACQUISITION YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $1,155,705 $ 1,155,705 $ 1,155,705 $ Resources(Inflows): Use of money and property 1,990 18,040 4,105 (13,935) Developer participation 130,000 180,000 190,389 10,389 Amounts Available for Appropriations 1,287,695 1,353,745 1,350,199 (3,546) Budgetary Fund Balance,June 30(Budgetary Basis) $1,287,695 $ 1,353,745 1,350,199 $ (3,546) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,350,199 197 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT DISTRICT 82-1 YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 13,203 $ 13,203 $ 13,203 $ - Resources(Inflows): Use of money and property 160 200 85 (115) Amounts Available for Appropriations 13,363 13,403 13,288 (115) Budgetary Fund Balance,June 30(Budgetary Basis) $ 13,363 $ 13,403 13,288 $ (115) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 13,288 198 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT DISTRICT 84-1 YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 1,122,223 $ 1,122,223 $ 1,122,223 $ - Resources(Inflows): Use of money and property 13,160 16,880 5,425 (11,455) Amounts Available for Appropriations 1,135,383 1,139,103 1,127,648 (11,455) Charges to Appropriation (Outflow): General government 310 310 310 Total Charges to Appropriations 310 310 310 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,135,073 $ 1,138,793 1,127,338 $ (11,455) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,127,338 199 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2001-01 YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 497,299 $ 497,299 $ 497,299 $ - Resources(Inflows): Use of money and property 5,840 7,480 (35,400) (42,880) Amounts Available for Appropriations 503,139 504,779 461,899 (42,880) Charges to Appropriation (Outflow): Community development 140 140 140 Total Charges to Appropriations 140 140 140 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 502,999 $ 504,639 461,759 $ (42,880) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 461,759 200 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE ETIWANDA EQUESTRIAN FACILITY YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 677,407 $ 677,407 $ 677,407 $ Resources(Inflows): Use of money and property 7,950 10,190 3,228 (6,962) Amounts Available for Appropriations 685,357 687,597 680,635 (6,962) Charges to Appropriation (Outflow): Community development 190 190 190 Total Charges to Appropriations 190 190 190 Budgetary Fund Balance,June 30(Budgetary Basis) $ 685,167 $ 687,407 680,445 $ (6,962) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 680,445 201 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2004-01 RANCHO ETIWANDA YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 48,457 $ 48,457 $ 48,457 $ - Resources(Inflows): Use of money and property 60 80 347 267 Amounts Available for Appropriations 48,517 48,537 48,804 267 Budgetary Fund Balance,June 30(Budgetary Basis) $ 48,517 $ 48,537 48,804 $ 267 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 48,804 202 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2006-01 VINTNER'S GROVE YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 1,848 $ 1,848 $ 1,848 $ - Resources(Inflows): Use of money and property 30 30 - (30) Amounts Available for Appropriations 1,878 1,878 1,848 (30) Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,878 $ 1,878 1,848 $ (30) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,848 203 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2006-02 AMADOR ON ROUTE 66 YEAR ENDED JUNE 30,2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 6,084 $ 6,084 $ 6,084 $ - Resources(Inflows): Use of money and property 80 100 20 (80) Amounts Available for Appropriations 6,164 6,184 6,104 (80) Budgetary Fund Balance,June 30(Budgetary Basis) $ 6,164 $ 6,184 6,104 $ (80) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 6,104 204 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. 205 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET POSITION NON-MAJOR PROPRIETARY FUNDS JUNE 30,2018 Business-Type Activities-Enterprise Funds REGIS Fiber Optic Connect Network Totals Assets: Current: Cash and investments $ - $ - $ - Receivables: Accounts 4,671 - 4,671 Total Current Assets 4,671 - 4,671 Noncurrent: Capital assets-net of accumulated depreciation - 5,498,788 5,498,788 Total Noncurrent Assets - 5,498,788 5,498,788 Total Assets $ 4,671 $ 5,498,788 $ 5,503,459 Liabilities and Net Position: Liabilities: Current: Accounts payable $ - $ 64,119 $ 64,119 Due to other funds 29,896 344,852 374,748 Total Current Liabilities 29,896 408,971 438,867 Total Liabilities 29,896 408,971 438,867 Net Position: Invested in capital assets - 5,498,788 5,498,788 Unrestricted (25,225) (408,971) (434,196) Total Net Position (25,225) 5,089,817 5,064,592 Total Liabilities and Net Position $ 4,671 $ 5,498,788 $ 5,503,459 See Notes to Financial Statements 206 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30,2018 Business-Type Activities-Enterprise Funds REGIS Fiber Optic Connect Network Totals Operating Revenues: Sales and service charges $ 42,930 $ 58,857 $ 101,787 Miscellaneous - 4,950 4,950 Total Operating Revenues 42,930 63,807 106,737 Operating Expenses: Maintenance and operations 98,564 - 98,564 Contractual services 6,405 - 6,405 Depreciation expense - 144,924 144,924 Total Operating Expenses 104,969 144,924 249,893 Operating Income(Loss) (62,039) (81,117) (143,156) Nonoperating Revenues(Expenses): Interest revenue (933) (2,170) (3,103) Total Nonoperating Revenues(Expenses) (933) (2,170) (3,103) Income(Loss)Before Contributions (62,972) (83,287) (146,259) Capital Contributions - 588,730 588,730 Changes in Net Position (62,972) 505,443 442,471 Net Position: Beginning of Year 37,747 4,584,374 4,622,121 End of Fiscal Year $ (25,225) $ 5,089,817 $ 5,064,592 See Notes to Financial Statements 207 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30,2018 Business-Type Activities-Enterprise Funds REGIS Fiber Optic Connect Network Totals Cash Flows from Operating Activities: Cash received from customers and users $ 77,499 $ 58,857 $ 136,356 Cash paid to suppliers for goods and services (147,468) - (147,468) Cash received from(payments to)others - 413,921 413,921 Net Cash Provided(Used) by Operating Activities (69,969) 472,778 402,809 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (494,250) (494,250) Net Cash Provided(Used) by Capital and Related Financing Activities - (494,250) (494,250) Cash Flows from Investing Activities: Interest received (862) (2,154) (3,016) Net Cash Provided(Used) by Investing Activities (862) (2,154) (3,016) Net Increase(Decrease)in Cash and Cash Equivalents (70,831) (23,626) (94,457) Cash and Cash Equivalents at Beginning of Year 70,831 23,626 94,457 Cash and Cash Equivalents at End of Year $ - $ - $ - Reconciliation of Operating Income to Net Cash Provided(Used) by Operating Activities: Operating income(loss) $ (62,039) $ (81,117) $ (143,156) Adjustments to reconcile operating income(loss) net cash provided(used) by operating activities: Depreciation - 144,924 144,924 (Increase)decrease in accounts receivable 34,569 - 34,569 Increase(decrease)in accounts payable (309) 64,119 63,810 Increase(decrease)in due to other funds (42,190) 344,852 302,662 Total Adjustments (7,930) 553,895 545,965 Net Cash Provided(Used)by Operating Activities $ (69,969) $ 472,778 $ 402,809 Non-Cash Investing, Capital,and Financing Activities: Donated infrastructure $ - $ 588,730 $ 588,730 See Notes to Financial Statements 208 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. 209 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30,2018 Computer Equipment and Equipment/ Vehicle Technology Replacement Replacement Total Assets: Current: Cash and investments $ 1,913,831 $ 1,368,683 $ 3,282,514 Receivables: Accounts 100 29,020 29,120 Accrued interest 7,533 4,724 12,257 Prepaid costs - 789,056 789,056 Total Current Assets 1,921,464 2,191,483 4,112,947 Noncurrent: Capital assets-net of accumulated depreciation 4,563,789 1,356,272 5,920,061 Total Noncurrent Assets 4,563,789 1,356,272 5,920,061 Total Assets $ 6,485,253 $ 3,547,755 $ 10,033,008 Liabilities and Net Position: Liabilities: Current: Accounts payable $ 127,198 $ 53,899 $ 181,097 Total Current Liabilities 127,198 53,899 181,097 Total Liabilities 127,198 53,899 181,097 Net Position: Invested in capital assets 4,563,789 1,356,272 5,920,061 Unrestricted 1,794,266 2,137,584 3,931,850 Total Net Position 6,358,055 3,493,856 9,851,911 Total Liabilities and Net Position $ 6,485,253 $ 3,547,755 $ 10,033,008 See Notes to Financial Statements 210 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2018 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Operating Revenues: Sales and service charges $ - $ 349,180 $ 349,180 Total Operating Revenues - 349,180 349,180 Operating Expenses: Maintenance and operations 121,041 379,937 500,978 Contractual services 30,064 194,977 225,041 Depreciation expense 917,357 364,571 1,281,928 Total Operating Expenses 1,068,462 939,485 2,007,947 Operating Income(Loss) (1,068,462) (590,305) (1,658,767) Nonoperating Revenues(Expenses): Interest revenue 16,723 9,753 26,476 Interest expense (783) (13,382) (14,165) Total Nonoperating Revenues(Expenses) 15,940 (3,629) 12,311 Income(Loss)Before Transfers (1,052,522) (593,934) (1,646,456) Transfers in - 182,940 182,940 Changes in Net Position (1,052,522) (410,994) (1,463,516) Net Position: Beginning of Year 7,410,577 3,904,850 11,315,427 End of Fiscal Year $ 6,358,055 $ 3,493,856 $ 9,851,911 See Notes to Financial Statements 211 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2018 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Cash Flows from Operating Activities: Cash received from customers and users $ (100) $ 349,180 $ 349,080 Cash paid to suppliers for goods and services (52,777) (1,318,962) (1,371,739) Net Cash Provided(Used) by Operating Activities (52,877) (969,782) (1,022,659) Cash Flows from Non-Capital Financing Activities: Cash transfers in - 182,940 182,940 Net Cash Provided(Used) by Non-Capital Financing Activities - 182,940 182,940 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (682,148) (99,285) (781,433) Principal paid on capital debt (56,760) (410,710) (467,470) Interest paid on capital debt (783) (13,382) (14,165) Net Cash Provided(Used) by Capital and Related Financing Activities (739,691) (523,377) (1,263,068) Cash Flows from Investing Activities: Interest received 14,914 9,489 24,403 Net Cash Provided(Used) by Investing Activities 14,914 9,489 24,403 Net Increase(Decrease)in Cash and Cash Equivalents (777,654) (1,300,730) (2,078,384) Cash and Cash Equivalents at Beginning of Year 2,691,485 2,669,413 5,360,898 Cash and Cash Equivalents at End of Year $ 1,913,831 $ 1,368,683 $ 3,282,514 Reconciliation of Operating Income to Net Cash Provided(Used) by Operating Activities: Operating income(loss) $ (1,068,462) $ (590,305) $ (1,658,767) Adjustments to reconcile operating income(loss) net cash provided(used) by operating activities: Depreciation 917,357 364,571 1,281,928 (Increase)decrease in accounts receivable (100) - (100) (Increase)decrease in prepaid expense 14,905 (789,056) (774,151) Increase(decrease)in accounts payable 83,423 45,008 128,431 Total Adjustments 1,015,585 (379,477) 636,108 Net Cash Provided(Used)by Operating Activities $ (52,877) $ (969,782) $ (1,022,659) See Notes to Financial Statements 212 THIS PAGE INTENTIONALLY LEFT BLANK 213 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. CommunitV 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. CommunitV 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. CommunitV Facilities District 2000-03 Rancho Summit Reserve Fund - Established to account for the reserve fund held by the trustee. 214 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. CFD Empire Lakes- Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to the proposed Community Facilities District 2018-01. Employee Deduction Account Fund - Established to account for the contribution by City employees towards specific employee-paid benefits. 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. 215 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30,2018 Special Assessment Assessment Assessment Deposits District 82-1 District 84-2 District 85-PD Assets: Cash and investments $ 8,416,335 $ 47 $ 46 $ 1,936,033 Receivables: Accounts 139,017 - - 8,623 Taxes 1,540 - - 14,599 Accrued interest - - - 5,192 Cash and investments with fiscal agents - - - - Total Assets $ 8,556,892 $ 47 $ 46 $ 1,964,447 Liabilities: Accounts payable $ 1,120 $ - $ - $ 64,870 Accrued liabilities 17,400 - - 6,553 Deposits payable 8,163,753 - - - Payable to trustee 374,619 47 46 1,893,024 Due to external parties/other agencies - - - - Total Liabilities $ 8,556,892 $ 47 $ 46 $ 1,964,447 See Notes to Financial Statements 216 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30,2018 (CONTINUED) AD 93-1 Masi Assessment Assessment Commerce CFD 88-2 District 91-2 District 99-1 Center Assets: Cash and investments $ 4,443,125 $ 47,752 $ 302,500 $ 520,258 Receivables: Accounts - - 7,746 - Taxes 1,156 139 - - Accrued interest 9,588 121 1,014 1,404 Cash and investments with fiscal agents - - - 243,560 Total Assets $ 4,453,869 $ 48,012 $ 311,260 $ 765,222 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - 493 Deposits payable - - - - Payable to trustee 4,453,869 47,519 311,260 765,222 Due to external parties/other agencies - - - - Total Liabilities $ 4,453,869 $ 48,012 $ 311,260 $ 765,222 See Notes to Financial Statements 217 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30,2018 CFD 2000-03 CFD 2000-03 Rancho Rancho CFD 2003-01 CFD 2003-01 Summit Summit Series A Series B Redemption Reserve Assets: Cash and investments $ 711,884 $ 208,889 $ 411,201 $ - Receivables: Accounts - - - - Taxes 1,681 - 3,262 - Accrued interest 1,144 459 693 - Cash and investments with fiscal agents 1,423,364 133,078 50 262,994 Total Assets $ 2,138,073 $ 342,426 $ 415,206 $ 262,994 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Payable to trustee 2,138,073 342,426 415,206 262,994 Due to external parties/other agencies - - - - Total Liabilities $ 2,138,073 $ 342,426 $ 415,206 $ 262,994 See Notes to Financial Statements 218 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30,2018 (CONTINUED) CFD 2000-03 Employee Park CFD Empire Deduction CFD 2004-01 Maintenance Lakes Account Assets: Cash and investments $ 2,099,990 $ 522,129 $ 72,686 $ 25,705 Receivables: Accounts - - 2,497 - Taxes 34,656 2,530 - Accrued interest 4,265 1,456 Cash and investments with fiscal agents 1,194,880 - - - Total Assets $ 3,333,791 $ 526,115 $ 75,183 $ 25,705 Liabilities: Accounts payable $ - $ 31,541 $ 14,578 $ - Accrued liabilities - 7,789 - Deposits payable - - 59,205 Payable to trustee 3,333,791 486,785 1,400 - Due to external parties/other agencies - - - 25,705 Total Liabilities $ 3,333,791 $ 526,115 $ 75,183 $ 25,705 See Notes to Financial Statements 219 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30,2018 Special Tax Refunding CFD 2017-01 Bonds 2015 No. Etiwanda Total Assets: Cash and investments $ 1,589,939 $ 2,557 $ 21,311,076 Receivables: Accounts 102,016 - 259,899 Taxes 26,124 85,687 Accrued interest 2,115 27,451 Cash and investments with fiscal agents 778,081 - 4,036,007 Total Assets $ 2,498,275 $ 2,557 $ 25,720,120 Liabilities: Accounts payable $ - $ 2,557 $ 114,666 Accrued liabilities - - 32,235 Deposits payable - 8,222,958 Payable to trustee 2,498,275 17,324,556 Due to external parties/other agencies - 25,705 Total Liabilities $ 2,498,275 $ 2,557 $ 25,720,120 See Notes to Financial Statements 220 THIS PAGE INTENTIONALLY LEFT BLANK 221 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2018 Balance Balance July 1,2017 Additions Deductions June 30,2018 Special Deposits Assets: Cash and investments $ 8,021,898 $ 2,599,333 $ 2,204,896 $ 8,416,335 Receivables: Accounts 108,355 1,072,403 1,041,741 139,017 Taxes 535 1,540 535 1,540 Total Assets $ 8,130,788 $ 3,673,276 $ 3,247,172 $ 8,556,892 Liabilities: Accounts payable $ 2,335 $ 1,302,350 $ 1,303,565 $ 1,120 Accrued liabilities 17,400 - - 17,400 Deposits payable 8,052,743 3,112,136 3,001,126 8,163,753 Payable to trustee 58,310 383,806 67,497 374,619 Total Liabilities $ 8,130,788 $ 4,798,292 $ 4,372,188 $ 8,556,892 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 $ 1,501,706 $ 1,570,416 $ 1,136,089 $ 1,936,033 Receivables: Accounts 3,787 6,720 1,884 8,623 Taxes 16,934 14,599 16,934 14,599 Accrued interest 3,000 5,175 2,983 5,192 Total Assets $ 1,525,427 $ 1,596,910 $ 1,157,890 $ 1,964,447 Liabilities: Accounts payable $ 73,405 $ 697,483 $ 706,018 $ 64,870 Accrued liabilities 6,848 6,553 6,848 6,553 Payable to trustee 1,445,174 1,727,237 1,279,387 1,893,024 Total Liabilities $ 1,525,427 $ 2,431,273 $ 1,992,253 $ 1,964,447 See Notes to Financial Statements 222 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2018 Balance Balance July 1,2017 Additions Deductions June 30,2018 CFD 88-2 Assets: Cash and investments $ 4,434,220 $ 65,434 $ 56,529 $ 4,443,125 Receivables: Taxes - 1,156 - 1,156 Accrued interest 5,588 9,588 5,588 9,588 Total Assets $ 4,439,808 $ 76,178 $ 62,117 $ 4,453,869 Liabilities: Payable to trustee $ 4,439,808 $ 65,671 $ 51,610 $ 4,453,869 Total Liabilities $ 4,439,808 $ 65,671 $ 51,610 $ 4,453,869 Assessment District 91-2 Assets: Cash and investments $ 44,263 $ 34,562 $ 31,073 $ 47,752 Receivables: Taxes 324 139 324 139 Accrued interest 81 121 81 121 Total Assets $ 44,668 $ 34,822 $ 31,478 $ 48,012 Liabilities: Accrued liabilities $ 1,755 $ 496 $ 1,758 $ 493 Payable to trustee 42,913 36,458 31,852 47,519 Total Liabilities $ 44,668 $ 36,954 $ 33,610 $ 48,012 Assessment District 99-1 Assets: Cash and investments $ 301,551 $ 6,825 $ 5,876 $ 302,500 Receivables: Accounts 7,746 - - 7,746 Accrued interest 591 1,014 591 1,014 Total Assets $ 309,888 $ 7,839 $ 6,467 $ 311,260 Liabilities: Payable to trustee $ 309,888 $ 7,839 $ 6,467 $ 311,260 Total Liabilities $ 309,888 $ 7,839 $ 6,467 $ 311,260 AD 93-1 Masi Commerce Center Assets: Cash and investments $ 510,318 $ 254,460 $ 244,520 $ 520,258 Receivables: Accrued interest 1,004 1,404 1,004 1,404 Restricted assets: Cash and investments with fiscal agents 242,656 1,920 1,016 243,560 Total Assets $ 753,978 $ 257,784 $ 246,540 $ 765,222 Liabilities: Payable to trustee $ 753,978 $ 256,379 $ 245,135 $ 765,222 Total Liabilities $ 753,978 $ 256,379 $ 245,135 $ 765,222 See Notes to Financial Statements 223 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2018 Balance Balance July 1,2017 Additions Deductions June 30,2018 CFD 2003-01 Series A Assets: Cash and investments $ 689,365 $ 1,089,482 $ 1,066,963 $ 711,884 Receivables: Taxes 3,779 1,681 3,779 1,681 Accrued interest 1,356 1,144 1,356 1,144 Restricted assets: Cash and investments with fiscal agents 1,418,246 11,318 6,200 1,423,364 Total Assets $ 2,112,746 $ 1,103,625 $ 1,078,298 $ 2,138,073 Liabilities: Payable to trustee $ 2,112,746 $ 1,103,625 $ 1,078,298 $ 2,138,073 Total Liabilities $ 2,112,746 $ 1,103,625 $ 1,078,298 $ 2,138,073 CFD 2003-01 Series B Assets: Cash and investments $ 205,450 $ 204,458 $ 201,019 $ 208,889 Receivables: Accrued interest 304 459 304 459 Restricted assets: Cash and investments with fiscal agents 132,592 1,083 597 133,078 Total Assets $ 338,346 $ 206,000 $ 201,920 $ 342,426 Liabilities: Payable to trustee $ 338,346 $ 206,000 $ 201,920 $ 342,426 Total Liabilities $ 338,346 $ 206,000 $ 201,920 $ 342,426 CFD 2000-03 Rancho Summit Redemption Assets: Cash and investments $ 382,863 $ 587,589 $ 559,251 $ 411,201 Receivables: Taxes 6,210 3,262 6,210 3,262 Accrued interest 754 693 754 693 Restricted assets: Cash and investments with fiscal agents 7 1,256 1,213 50 Total Assets $ 389,834 $ 592,800 $ 567,428 $ 415,206 Liabilities: Payable to trustee $ 389,834 $ 592,800 $ 567,428 $ 415,206 Total Liabilities $ 389,834 $ 592,800 $ 567,428 $ 415,206 CFD 2000-03 Rancho Summit Reserve Assets: Restricted assets: Cash and investments with fiscal agents $ 262,070 $ 924 $ $ 262,994 Total Assets $ 262,070 $ 924 $ - $ 262,994 Liabilities: Payable to trustee $ 262,070 $ 924 $ $ 262,994 Total Liabilities $ 262,070 $ 924 $ - $ 262,994 See Notes to Financial Statements 224 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2018 Balance Balance July 1,2017 Additions Deductions June 30,2018 CFD 2004-01 Assets: Cash and investments $ 1,982,940 $ 2,544,123 $ 2,427,073 $ 2,099,990 Receivables: Taxes 27,937 34,656 27,937 34,656 Accrued interest 3,885 4,265 3,885 4,265 Restricted assets: Cash and investments with fiscal agents 1,190,461 9,917 5,498 1,194,880 Total Assets $ 3,205,223 $ 2,592,961 $ 2,464,393 $ 3,333,791 Liabilities: Payable to trustee $ 3,205,223 $ 2,593,745 $ 2,465,177 $ 3,333,791 Total Liabilities $ 3,205,223 $ 2,593,745 $ 2,465,177 $ 3,333,791 CFD 2000-03 Park Maintenance Assets: Cash and investments $ 507,148 $ 479,935 $ 464,954 $ 522,129 Receivables: Taxes 4,962 2,530 4,962 2,530 Accrued interest 1,047 1,456 1,047 1,456 Total Assets $ 513,157 $ 483,921 $ 470,963 $ 526,115 Liabilities: Accounts payable $ 10,922 $ 163,230 $ 142,611 $ 31,541 Accrued liabilities 6,524 7,980 6,715 7,789 Payable to trustee 495,711 489,069 497,995 486,785 Total Liabilities $ 513,157 $ 660,279 $ 647,321 $ 526,115 CFD Empire Lakes Assets: Cash and investments $ - $ 100,052 $ 27,366 $ 72,686 Receivables: Accounts 2,497 - 2,497 Total Assets $ - $ 102,549 $ 27,366 $ 75,183 Liabilities: Accounts payable $ $ 23,795 $ 9,217 $ 14,578 Deposits payable $ - 59,205 - $ 59,205 Payable to trustee - 19,549 18,149 1,400 Total Liabilities $ - $ 102,549 $ 27,366 $ 75,183 Employee Deduction Account Assets: Cash and investments $ 165,396 $ 336,390 $ 476,081 $ 25,705 Total Assets $ 165,396 $ 336,390 $ 476,081 $ 25,705 Liabilities: Accrued liabilities $ - $ 170,022 $ 170,022 $ - Due to external parties/other agencies 165,396 178,894 318,585 25,705 Total Liabilities $ 165,396 $ 348,916 $ 488,607 $ 25,705 See Notes to Financial Statements 225 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2018 Balance Balance July 1,2017 Additions Deductions June 30,2018 Special Tax Refunding Bonds 2015 Assets: Cash and investments $ 1,571,007 $ 1,801,002 $ 1,782,070 $ 1,589,939 Receivables: Accounts 100,000 2,016 - 102,016 Taxes 10,626 26,124 10,626 26,124 Accrued interest 1,990 2,115 1,990 2,115 Restricted assets: Cash and investments with fiscal agents 776,657 6,580 5,156 778,081 Total Assets $ 2,460,280 $ 1,837,837 $ 1,799,842 $ 2,498,275 Liabilities: Payable to trustee $ 2,460,280 $ 1,837,837 $ 1,799,842 $ 2,498,275 Total Liabilities $ 2,460,280 $ 1,837,837 $ 1,799,842 $ 2,498,275 CFD 2017-01 No. Etiwanda Assets: Cash and investments $ 36,980 $ 3,620 $ 38,043 $ 2,557 Receivables: Accrued interest 81 - 81 - Total Assets $ 37,061 $ 3,620 $ 38,124 $ 2,557 Liabilities: Accounts payable $ 1,796 $ 37,656 $ 36,895 $ 2,557 Deposits payable 35,140 - 35,140 - Payable to trustee 125 38,664 38,789 - Total Liabilities $ 37,061 $ 76,320 $ 110,824 $ 2,557 Totals-All Agency Funds Assets: Cash and investments $ 20,355,203 $ 11,677,681 $ 10,721,808 $ 21,311,076 Receivables: Accounts 219,888 1,083,636 1,043,625 259,899 Taxes 71,307 85,687 71,307 85,687 Accrued interest 19,681 27,434 19,664 27,451 Restricted assets: Cash and investments with fiscal agents 4,022,689 32,998 19,680 4,036,007 Total Assets $ 24,688,768 $ 12,907,436 $ 11,876,084 $ 25,720,120 Liabilities: Accounts payable $ 88,458 $ 2,224,514 $ 2,198,306 $ 114,666 Accrued liabilities 32,527 185,051 185,343 32,235 Deposits payable 8,087,883 3,171,341 3,036,266 8,222,958 Payable to trustee 16,314,504 9,359,603 8,349,551 17,324,556 Due to external parties/other agencies 165,396 178,894 318,585 25,705 Total Liabilities $ 24,688,768 $ 15,119,403 $ 14,088,051 $ 25,720,120 See Notes to Financial Statements 226 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2018 Statistical Section Certain schedules recommended for inclusion in Comprehensive Annual Financial Reports of Municipalities by the Government Finance Officers Association have been omitted from this report. The omission of such schedules was made only after careful consideration of the merits of each recommended schedule by City management. THIS PAGE INTENTIONALLY LEFT BLANK 227 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. 230-234 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. 235-240 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. 241-246 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. 247-249 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. 250-251 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 228 THIS PAGE INTENTIONALLY LEFT BLANK 229 (O M (O N 00 CO CO M V N M (O V N O O)O CD (0 V N N O M O In(fl M I� V N 7 co M Cl) (O Ln O 00 V 00 di N O M h LO O (M LO 00 LO O N (O O M V(O I Ln (O 7 (O M O N7M N �N M O V3 V3 V3 V3 V3 V3 Lo V 7 0 0) M V r Ln W W r R M (O O M Vi M O M G M (O V (D I� N M c) V O M O O O N co Ir 00 M M M N M (0 N O r N W N N Cl) M r N M 7 M V 7 O V3 V3 V3 613 613 V3 (NO V) M M 00 LO (MO 7 V O V �� Cl (O M7 O O �N 7 M O)(O O) V) M (O d) M M LO M Cl)LO n Cl) M co LO M (O O N V V 7 M O O(O (M N m M W N N M M N M 00 LO M LO O 7 LO O V3 613 V3 V3 Vi Vi 00 r-r- N 00 O Cl) (O h 0 Cl) N M Cl) (O CD M LO O a N M O M (o Ln M O N O M M (O LO (O M N N co M LO O N N r Cl) N O Un M LO (O O M C h M 7 0 N O O cM VL (M (O 7 LO N 0000 00 M 7 N O Cl) W W 0000 (O N O n N O V3 V3 V3 613 V3 V3 CD (OO O N (IO N O O O LO N N O O M LO (s C Cl 0)d)co LO 00 I`00 V 00 r M C M M M d) N(O LO d) 7 0 LO Cl M N N N 00(O (d M O O M N 00 It O N co I-- M � 7 0 (MO M Cl)r r— M� � N } V3 V3 V3 V3 V3 V3 Q U LO M M M (O I-co d) (O V) N (' N O 7 In (9 M Cl) M It O) Z M N M n V 7 M rl CO M M LO O M r-N 00 r- 00 O (O (O LO N LO V M Co 7 7 LO LO 00 M a) N N 7 0 C O LO M O M V 00 cM O M N 7 (O Q O L•� N 00 N� 7 LO O (O M M 7 U a N N O N M n N O N O V O lU N Ef3 fA fA V3 ER U O W O LO V co N n V N N LO I-- V = M y co co M M Lo N M N LO to coy V C c• N O V N- LO O N OM n (O(O O O a) @ M 0)CO d) M LP) m 00 I-M LO Z !_' r-0 LO M 00 M 00 CD1- CD M CD(O V N M N O M N pz M V N O 10 M d m ? 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N O 0 C n 0 N o U CoNO N 0 C -0 0 O O >.X CO a mam m'c o N o @8 Q0 0) N c a o m a y o ° 6 0 o w a 00 3 m 7 m F O T y y iO t N N O 50 CD 00 >, @ d a 0) T (0n .0 N N N '- cU 00 O 0 0 c r CO C 0 B o a= N � a v o w `� U a 2 C Q Q y T tq d i 'O m U 00 pop 00 6) E A '0 o a-C m °c o w w o ° c p V a LU L 07 N E O y N 16 aQ U 'O d E m o m c t U) U > :: E 7 0 =� E m 0 0 C 7 c E 7 U � a .@(n O C io o m a) O N a) m a) y m o E E � E ) w m °tf 0 E ° w m cLu 3 2 t o- ) �Oo N 0-E r (p (6 W U 2 W D w0 20, L ` Oco d V n N X 0 J E >. >,a@ O OS 0 n r y m N a>) c vi c c u 0@ m o r G y G y 3 0 > o c y m o o > m > CD m (p c m m 3 c �° :° a :° °? 5 ° a O a U w (n F n E @ Q mQUUU co WLi2O� H V W H z 236 CITY OF RANCHO CUCAMONGA Principal Property Taxpayers Current Year and Nine Years Ago 2018 2009 Percent of Percent of Total City Total City Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Homecoming I at Terra Vista LLC $269,828,279 1.08% $ 96,254,228 0.46% Rancho Mall LLC 261,954,095 1.05% - 0.00% Prologis California I LLC/Catellus 180,897,740 0.72% - 0.00% Frito-Lay North America Inc 158,335,800 0.63% - 0.00% MFREVF 11 -Empire Lakes LLC 132,652,334 0.53% 0.00% GS Rancho LLC 109,801,781 0.44% - 0.00% WNG Rancho Cucamonga 496 LLC 107,130,994 0.43% - 0.00% EQR Fanwell 2007 LP 104,659,915 0.42% 94,055,253 0.45% Knickerbocker Barrington Place LLC 102,500,000 0.41% - 0.00% Goodman Rancho SPE LLC 90,461,940 0.36% - 0.00% Victoria Gardens Mall LLC - 0.00% 232,159,799 1.12% T-NAPF Meritage Ownership LLC - 0.00% 152,184,510 0.73% Calellus Development Corporation - 0.00% 138,869,412 0.67% PK Sales LLC - 0.00% 119,198,220 0.58% RREEF America REIT 11 Corporation TTTT - 0.00% 97,017,300 0.47% Knickerbocker Properties Inc XLVII - 0.00% 92,427,300 0.45% PPF MF 9200 Milliken Ave LP - 0.00% 74,979,599 0.36% UDR Rancho Cucamonga LP - 0.00% 74,658,163 0.36% $1,518,222,878 6.08% $ 1,171,803,784 5.66% Source: San Bernardino County Assessor 2008/09 and 2017/18 Combined Tax Rolls and the SBE Non Unitary Tax Roll; HdL, Coren&Cone 237 CITY OF RANCHO CUCAMONGA Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 2009 98,855,469 95,515,265 96.62% N/A 95,515,265 96.62% 2010 98,181,404 95,149,733 96.91% N/A 95,149,733 96.91% 2011 95,051,899 89,513,493 94.17% N/A 89,513,493 94.17% 2012 93,318,030 86,742,369 92.95% N/A 86,742,369 92.95% 2013 93,235,913 85,131,812 91.31% N/A 85,131,812 91.31% 2014 95,016,035 93,063,071 97.94% N/A 93,063,071 97.94% 2015 100,428,866 98,457,115 98.04% N/A 98,457,115 98.04% 2016 105,120,614 103,112,427 98.09% N/A 103,112,427 98.09% 2017 108,069,418 107,991,619 99.93% N/A 107,991,619 99.93% 2018 112,950,393 $ 114,778,741 101.62% N/A 114,778,741 101.62% 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 238 THIS PAGE INTENTIONALLY LEFT BLANK 239 CITY OF RANCHO CUCAMONGA Principal Sales Tax Remitters Current Year and Nine Years Ago 2018 2009 Business Name Business Cateaory Business Name Business Cateaory Ameron Heavy Industrial Active Sports Goods/Bike Stores Anker Electronics/Appliance Stores Ameron International Contractors Apple Electronics/Appliance Stores Apple Electronics/Appliance Stores Bass Pro Shops Outdoor World Sporting Goods/Bike Stores Bass Pro Shops Outdoor World Sporting Goods/Bike Stores Best Buy Electronics/Appliance Stores Best Buy Electronics/Appliance Stores Chevron Service Stations Chevron Service Stations Costco Discount Department Stores Circle K 76 Service Stations Edgepark Surgical Medical/Biotech Circuit City Electronics/Appliance Stores Home Depot Building Materials Costco Discount Department Stores ICL Performance Products Drug/Chemicals Dan Reshaw Mobil Service Stations JC Penney Department Stores Day Creek Arco Service Stations Jeromes Home Furnishings Distributor Warehouse Business Services Living Spaces Furniture Home Furnishings Home Depot Building Materials Lowes Building Materials JC Penney Department Stores Macys Department Stores Living Spaces Furniture Home Furnishings Meadowbrook Meat Company Food Service Equip./Supplies Lowes Lumber/Building Materials Monoprice Fulfillment Centers Macys Department Stores Parallon Supplies Chain Solutions Medical/Biotech Novartis Animal Health Medical/Biotech Ralphs Grocery Stores Liquor Pauls TV Electronics/Appliance Stores Ross Family Apparel Sears Department Stores Tamco Heavy Industrial Southwire Energy/Utilities Target Discount Department Stores Tamco Heavy Industrial USA Gasoline Service Stations Target Discount Department Stores Walmart Discount Department Stores Walmart Discount Department Stores Walters Wholesale Electric Plumbing/Electrical Supplies Walters Wholesale Electric Plumbing/Electrical Supplies *Firms listed alphabetically Source: The HdL Companies;State Board of Equalization 240 CITY OF RANCHO CUCAMONGA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year General Tax Total Ended Obligation Capital Allocation Governmental June 30 Bonds Leases Bonds 1 Loans Activities 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 2018 3 - - - - - 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. 241 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 - - 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 - - - 0.00% - 242 CITY OF RANCHO CUCAMONGA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) Outstanding General Bonded Debt Fiscal Year General Tax Percent of Percentage Ended Obligation Allocation Assessed of Personal Per June 30 Bonds Bonds Total Value 1 Income 2 Capita 2 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% - 2018 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. 243 CITY OF RANCHO CUCAMONGA Direct and Overlapping Debt June 30,2018 City Net Taxable Assessed Value $ 24,962,792'000 2 City Percentage Total Share of Applicable Debt 6/30/17 Debt Overlapping Tax and Assessment Debt: Metropolitan Water District 0.911% $ 60,600,000 552,066 Chaffey Community College District 23.791% 138,940,000 33,055,215 Chaffey Joint Union High School District 44.577% 389,572,765 173,659,851 Alta Loma School District 98.783% 29,046,793 28,693,294 Central School District 97.959% 35,670,100 34,942,073 Cucamonga School District Community Facilities District No. 97-1 100.000% 4,630,000 4,630,000 Etiwanda School District 68.353% 45,995,326 31,439,185 Etiwanda School District CFD Nos. 1,2&3 100.000% 730,000 730,000 Etiwanda School District CFD No.7 21.530% 8,320,000 1,791,296 Etiwanda School District CFD No.8 68.006% 4,525,000 3,077,272 Etiwanda School District CFD No.9 70.844% 7,670,000 5,433,735 Etiwanda School District CFD Nos.2004-2&2007-1 100.000% 16,105,000 16,105,000 Etiwanda School District Rancho Etiwanda Public Facilities Authority CFD No. 1 100.000% 11,380,000 11,380,000 Fontana Unified School District 0.370% 189,557,259 701,362 Upland Unified School District 0.121% 89,769,550 108,621 City of Rancho Cucamonga CFDs 100.000% 69,328,000 69,328,000 City of Rancho Cucamonga 1915 Act Bonds 100.000% 1,005,000 1,005,000 Total overlapping tax and assessment debt 1,102,844,793 416,631,970 Direct and Overlapping General Fund Debt San Bernardino County General Fund Obligations 12.042% $ 368,015,000 44,316,366 San Bernardino County Pension Obligations Bonds 12.042% 336,106,248 40,473,914 San Bernardino County Flood Control Dist General Fund Oblig 12.042% 68,325,000 8,227,697 Chaffey Community College District General Fund Obligations 23.791% 31,725,000 7,547,695 Cucamonga School District Certificates of Participation 40.702% 6,385,000 2,598,823 Fontana Unified School District Certificates of Participation 0.370% 31,370,000 116,069 City of Rancho Cucamonga General Fund Obligations 100.000% - - West Valley Vector Control District Certificates of Participation 32.882% 2,556,686 840,689 Total gross direct and overlapping general fund debt 844,482,934 104,121,253 Overlapping Tax Increment Debt(Successor Agency) 100.000% 272,735,000 272,735,000 Total overlapping debt $ 2,220,062,727 793,488,223 City direct debt - Total direct and overlapping debt $ 793,488,223 Notes: The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 2 Includes aircraft values. For 2018,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's database, as HdL's net taxable value includes parcels from the County Assessor's database that were inadvertently excluded by the Auditor-Controller. The City believes that the data from HdL provides a more accurate picture for the financial statement reader. 3 Excludes refunding issues dated after 6/30/17. Includes issues to be refunded. 4 Excludes tax and revenue anticipation notes,enterprise revenue and mortgage revenue obligations. Qualified Zone Academy Bonds are included based on principal due at maturity. Source: California Municipal Statistics, HdL Coren&Cone 244 M M o Lf) N N 00 00 O n 0 0 N l0 O n (0 CO 0 N N n O n n N CO CO N N N O Cl) Cl) V 7 N [fl fA V> V> Cl) M o n n o °o °ct o o ((00 ((00 L N M M EA 613 00 00 0 00 00 O 0) 0) O 0 0 N N N ON) ON1 M M VA 613 00 00 C_0DA N O ° ° ) O . 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Mnca V1 N 7 .y E > a) 6 n O - o "0 tL„ CO,M c N U) ' a) c d a) E a)° 4 T 6 Y E O 7 N N ° V a) a 0 o m a c 'p° L o f ° 0 c dr m... 0 0 0)15 ° wd E N o ow o g U U O N ° c o U w o o c m o Y T o Y ° .Q c .Qa) c y odm O1 E0aa c Q. m m m rn m n rn E E m ° ° E a) 0 vm� E a a ac g m g o > y (°i o r m o U a a E m Q(` 0 U,°J C O N N > a) v a) a � Y '- m � '0 y 0 W m o Fg m� c c m -0 a a) m P:H 3 Y o.o Q d )° a �° a Z 00(' Z i4 F J F J 245 CITY OF RANCHO CUCAMONGA Pledged-Revenue Coverage Last Ten Fiscal Years (In Thousands) Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment ' Principal Interest Coverage 2009 77,581 10,405 20,994 2.47 2010 77,255 8,665 20,547 2.64 2011 69,583 9,070 20,122 2.38 2012 2 51,609 9,520 9,950 2.65 2013 2 n/a n/a n/a n/a 2014 2 n/a n/a n/a n/a 2015 2 n/a n/a n/a n/a 2016 2 n/a n/a n/a n/a 2017 2 n/a n/a n/a n/a 2018 2 n/a n/a n/a n/a Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Tax increment figures are net of related pass-through payments. 2 As a result of the dissolution of the Redevelopment Agency on January 31, 2012 indebtedness was transferred to the Successor Agency. 246 CITY OF RANCHO CUCAMONGA Demographic and Economic Statistics Last Ten Calendar Years Per Personal Capita Income' Personal Unemployment Calendar Population (in thousands) Income' Rate Year (1) (2) (2) (3) 2008 175,627 5,167,755 29,425 5.1% 2009 177,051 5,080,143 28,693 8.6% 2010 178,904 5,377,675 30,059 9.4% 2011 169,498 5,190,707 30,624 8.7% 2012 171,058 5,341,115 31,224 6.2% 2013 172,299 5,335,755 30,968 5.4% 2014 174,064 5,402,772 31,039 6.0% 2015 175,251 5,365,133 30,613 4.8% 2016 177,324 5,317,032 29,984 4.2% 2017 176,671 5,586,992 31,623 3.9% 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 247 CITY OF RANCHO CUCAMONGA Principal Employers Current Year and Nine Years Ago* 2018 2009 Percent of Percent of Number of Total Number of Total Employer Employees, Rank Employment Employees, Rank Employment Inland Empire Health Plan (IEHP) 2,315 1 2.50% n/a n/a n/a Etiwanda School District 2,293 2 2.47% 1,267 2 1.63% Chaffey Community College 2,111 3 2.28% 1,300 1 1.68% Alta Loma School District 1,095 4 1.18% 923 3 1.19% City of Rancho Cucamonga 865 5 0.93% 908 4 1.17% Amphastar Pharmaceutical 643 6 0.69% 880 5 1.13% Mercury Insurance Company 632 7 0.68% 550 7 0.71% Macy's 615 8 0.66% n/a n/a n/a Central School District 605 9 0.65% n/a n/a n/a Big Lots Distribution Center 600 10 0.65% n/a n/a n/a Bass Pro Shop 500 11 0.54% n/a n/a n/a Coca Cola Bottling Co. 400 12 0.43% n/a n/a n/a ADECCO 360 13 0.39% n/a n/a n/a Note: "Total Employment"as used above represents the total employment of all employers located within City limits. 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