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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2019 '
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City of Rancho Cucamonga, California
Comprehensive Annual Financial Report
Year Ended June 30, 2019
Prepared by the
City of Rancho Cucamonga
Finance Department
Tamara L. Layne
Finance Director
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CITY OF RANCHO CUCAMONGA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal .............
CityOfficials...................................................................................................................................
xxxii
Organization Chart .........................................................................................................................xxxiii
Certificate of Achievement for Excellence in Financial Reporting ................................................
xxxiv
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT..............................................................................................
1
MANAGEMENT'S DISCUSSION AND ANALYSIS............................................................................
5
BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements:
Statement of Net Position....................................................................................................
27
Statement of Activities..........................................................................................................
28
Fund Financial Statements:
Balance Sheet - Governmental Funds.................................................................................
30
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position..........................................................................................
35
Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds.........................................................................................
36
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities..........................................................................................................
39
Statement of Net Position - Proprietary Funds....................................................................
40
Statement of Revenues, Expenses and Changes in Fund
NetPosition - Proprietary Funds..........................................................................................
42
Statement of Cash Flows - Proprietary Funds.....................................................................
44
Statement of Fiduciary Net Position - Fiduciary Funds ........................................................
48
Statement of Changes in Fiduciary Net Position - Fiduciary Funds ....................................
49
Notes to Financial Statements....................................................................................................
51
CITY OF RANCHO CUCAMONGA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information........................................................................ 104
Budgetary Comparison Information:
Budgetary Comparison Schedule - General Fund............................................................. 105
Budgetary Comparison Schedule - Development Impact Fees ......................................... 106
Budgetary Comparison Schedule - Lighting Districts........................................................ 107
Budgetary Comparison Schedule - Housing Successor Agency ....................................... 108
Budgetary Comparison Schedule - Fire District................................................................. 109
Pension Information:
Schedule of Changes in Net Pension Liability and Related Ratios -
Miscellaneous Plan - Agent Multiple -Employer Plan ......................................................
110
Schedule of Plan Contributions - Miscellaneous Plan -
Agent Multiple -Employer Plan.........................................................................................
111
Schedule of Proportionate Share of the Net Pension Liability -
Miscellaneous Rate Plan - Cost Sharing Multiple -Employer Plan ..................................
112
Schedule of Plan Contributions - Miscellaneous Rate Plan -
Cost Sharing Multiple -Employer Plan.............................................................................
113
Schedule of Proportionate Share of the Net Pension Liability -
Safety Rate Plan - Cost Sharing Multiple -Employer Plan ...............................................
114
Schedule of Plan Contributions - Safety Rate Plan -
Cost Sharing Multiple -Employer Plan.............................................................................
115
Schedule of Changes in Net Pension Liability and Related Ratios -
PARS Retirement Enhancement Plan............................................................................
116
Schedule of Plan Contributions - PARS Retirement Enhancement Plan ..........................
117
Other Post -Employment Benefit Information:
Schedule of Changes in Net OPEB Liability and Related Ratios ...................................... 118
Schedule of Contributions - OPEB..................................................................................... 119
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds .................................................. 124
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Funds................................................................ 132
Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds:
GasTax.............................................................................................................................. 139
Recreation.......................................................................................................................... 140
Beautification...................................................................................................................... 141
Landscape Maintenance Districts...................................................................................... 142
PedestrianGrant................................................................................................................ 143
Community Development Block Grant............................................................................... 144
AssessmentAdministration................................................................................................ 145
CITY OF RANCHO CUCAMONGA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued)
Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds (Continued)
Air Quality Improvement.....................................................................................................
146
MasiCommerce Center.....................................................................................................
147
MeasureI...........................................................................................................................
148
LibraryServices.................................................................................................................
149
PublicSafety Grants..........................................................................................................
150
UsedOil Recycling.............................................................................................................
151
Library Services Grants......................................................................................................
152
AB 2928 Traffic Congestion Relief.....................................................................................
153
LitterReduction Grant........................................................................................................
154
SAFETEA-LU Grant...........................................................................................................
155
UndergroundUtilities..........................................................................................................
156
Safe Routes to School Program........................................................................................
157
Citywide Infrastructure Improvement.................................................................................
158
Proposition1 B....................................................................................................................
159
Public Resource Grants.....................................................................................................
160
Integrated Waste Management..........................................................................................
161
SB1—TCEP.......................................................................................................................
162
Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds:
CapitalProjects Fund......................................................................................................... 163
Combining Statement of Net Position - Internal Service Funds ............................................... 166
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Internal Service Funds.............................................................................. 167
Combining Statement of Cash Flows - Internal Service Funds ................................................ 168
Combining Balance Sheet - All Agency Funds......................................................................... 172
Combining Statement of Changes in Assets and Liabilities -
AIIAgency Funds...................................................................................................................... 178
CITY OF RANCHO CUCAMONGA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
STATISTICAL SECTION
Financial Trends:
Page
Number
Net Position by Component - Last Ten Fiscal Years......................................................... 185
Statement of Activities (Condensed) - Last Ten Fiscal Years ........................................... 186
Fund Balances of Governmental Funds - Last Ten Fiscal Years ...................................... 188
Changes in Fund Balances of Governmental Funds -
LastTen Fiscal Years........................................................................................................ 189
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property ...................................
190
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ................................
191
Principal Property Taxpayers - Current Year and Nine Years Ago ...................................
192
Property Tax Levies and Collections - Last Ten Fiscal Years ...........................................
193
Principal Sales Tax Remitters - Current Year and Nine Years Ago ..................................
195
Debt Capacity
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................ 196
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years .............................. 198
Direct and Overlapping Debt.............................................................................................. 199
Legal Debt Margin Information - Last Ten Fiscal Years .................................................... 200
Pledged -Revenue Coverage - Last Ten Fiscal Years ....................................................... 201
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Calendar Years ................................... 202
Principal Employers - Current Year and Nine Years Ago .................................................. 203
Operating Information:
Full -Time and Part -Time City Employees by Function - Last Nine Fiscal Years ............... 204
Operating Indicators by Function - Last Nine Fiscal Years ................................................ 205
Capital Asset Statistics by Function - Last Nine Fiscal Years ........................................... 206
City of Rancho Cucamonga
Comprehensive Annual Financial Report
June 30, 2019
Introductory Section
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Mayor L. Dennis Michael I Mayor Pro Tern Lynne B. Kennedy
Council Members William J. Alexander, Sam Spagnolo, Diane Williams
City ManagerJohn R. Gillison
10500 Civic Center Drive I P.O. Box 807 1 Rancho Cucamonga, CA 91729-0807 1909.477.2700 1 www.CityofRC.us
December 9, 2019
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, 2019. 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 were 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, 2019, 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, 2019, are fairly presented in
conformity with GAAP. The independent auditors' report is presented as the first component of the financial section
of this report.
The independent audit of the financial statements of the City of Rancho Cucamonga was part of a broader, federally
mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial
statements, but also on the audited government's internal controls and compliance with legal requirements, with
special emphasis on internal controls and legal requirements involving the administration of federal awards. These
reports are available in the City of Rancho Cucamonga's separately issued Single Audit Report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of 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 179,412 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 as a result of the Measure, and the Mayor and Council members are elected on
a staggered basis for a term of four years. There is no limit on the number of terms an individual can serve as Mayor
or as Council members. The Mayor and City Council appoint the City Manager and City Attorney.
Reporting Entity and Its Services
The City has included within its reporting entity for financial reporting purposes all agencies for which the City is
financially accountable. These agencies include the Rancho Cucamonga Public Improvement Corporation, the
Rancho Cucamonga Fire Protection District, the Rancho Cucamonga Library, and the Rancho Cucamonga Public
Financing Authority. The City provides accounting services to all these agencies. Additional information on these
agencies can be found in Note 1 of the notes to financial statements.
The City of Rancho Cucamonga is a general law city governed by the State of California Government Code and
local ordinances and provides quality service by blending the talents of City staff and utilizing other agencies.
Certain services necessary to continue the high quality of life in Rancho Cucamonga such as water 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.
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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 17 of the notes to financial statements for more information on
the Successor Agency of the Former Redevelopment Agency.
Local Economy
During Fiscal Year 2018/19, 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. As we move into Fiscal Year 2019/20, the City will have nine years of steady of continuous growth, and
there is some dispute amongst economists whether we are still in an expansion or nearing the peak. However, there
is no argument that the current expansion has been quite long, much more so than normal.
Unemployment in the City of Rancho Cucamonga is currently at 3.20% as of March 2019. Full employment is
typical at a peak and, generally, full employment is under 4.00%. The City's unemployment figures are consistently
better than the County of San Bernardino which reported 4.30% and 4.10% in 2019 and 2018, respectively.
The City is located within a regional area that is the jobs engine for California, and California is the jobs engine for
the United States. On average, nearly 50,000 jobs a year, many of which are middle class jobs, are added from the
region, and the City is expected to grow between 1,500 to 2,000 jobs per year over the next five to seven years.
Additionally, the jobs being generated by businesses in Rancho Cucamonga and throughout California are also
paying well. Median household incomes in Rancho Cucamonga are right at the low $90K level.
One of the main drivers is housing growth, which is relatively affordable compared to the neighboring Los Angeles
and Orange Counties. Home prices continue to appreciate with the median house price in the City being
approximately $607K for single-family detached and $367K for attached homes. These prices are reflective of the
significant interest for residential and mixed -use projects within the City. With greater access to amenities than
many surrounding communities, and the strongest school districts in the region, both for rent and for sale properties
remain relatively affordable, by Los Angeles and Orange County standards, and are desirable locations to raise a
family.
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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 fund
level within the General Fund, 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 2019/20 total $79,127,950. Some of the larger projects included in
the CIP include the Etiwanda Grade Separation ($52,175,000); the Advance Traffic Management System —
Phases 1 and 2 ($6,867,000); and the Public Works Services Department's Warehouse Expansion ($2,140,000).
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. In
Fiscal Year 2018/19, through the Rancho Cucamonga Financing Authority, the City sold $12.195 million in bonds
to build and connect over 50 miles of citywide conduit and fiber optic cabling under a five-year master plan,
providing not only municipal broadband services but also connecting the City's core facilities and infrastructure.
Capital costs of the project will be recovered using revenue from municipal broadband customers managed by a
private company to minimize operating overhead costs for the City.
II. HIGHLIGHTS OF FISCAL YEAR 2018/19
Economic and Community Development
The Economic and Community Development Department continues to work on improving economic growth and
quality of life in the community. The mission of Economic Development is to foster a strong local economy and
create economic opportunities for investors and entrepreneurs, and to 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 155 business owners and entrepreneurs. As
a result, fifteen 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 12 workshops were held on various business -related topics and
185 people attended the workshops. The City, in collaboration with the County of San Bernardino and several west
end cities, hosted 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.
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The City continues to work closely with the Greater Ontario Tourism and Marketing District (GOTMD). The role
of the GOTMD is to increase tourism and event destination while increasing overnight stays. Most recently the
City worked with GOTMD staff to create an "I am Rancho" program to educate frontline City and hotel staff on
things to do in Rancho Cucamonga. Last year we saw the opening of the Residence Inn by Marriott on
Haven Avenue. Currently, there is one hotel under construction that is projected to open in late 2020, and one
boutique luxury hotel at Base Line Road and Day Creek Boulevard, one block from Victoria Gardens, that will
break ground in early 2020. These hotels will add to the current ten business class hotels that exist in the City.
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. During this fiscal year the City was instrumental
in assisting with the opening of Haven City Market. Haven City Market is a gourmet food hall exhibiting 18 various
eateries. The food hall has had tremendous success since its opening and has increased pedestrian traffic in a center
that was void of activity after business hours.
The City continues to work with the 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 includes 40-units of senior affordable housing. This project
was completed in May of 2019 and is fully leased. The second project is Day Creek Villas, a 140-unit senior
affordable housing project. This project is currently under construction and is anticipated to be completed at the
end of 2020.
A secondary source of funding is received from residual receipts generated from existing housing loans negotiated
by the former redevelopment agency. 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.
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Engineering Services
The Engineering Department is led by the Engineering Services Director/City Engineer and consists of
four sections. The following provides highlights of the major accomplishments achieved by each section 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 often Engineering Services Capital Improvement Projects amounting
to just over $8 million were completed during Fiscal Year 2018/19.
Capital projects completed during Fiscal Year 2018/19 include:
• 6tn Street from Milliken Avenue to Charles Smith Avenue Pavement Rehabilitation
• Jersey Boulevard from Haven Avenue to Rochester Avenue Pavement Rehabilitation
• Four Traffic Signal Installations at East Avenue/Miller Avenue, 6th Street/Rochester Avenue, Milliken
Avenue/5th Street and Rochester Avenue/Jersey Boulevard
• Traffic Signal Modifications at 15 Locations
• Sidewalk Improvements for Bus Stops at 5 Locations
• Detention Basin Improvements at Rancho Wash
• Pacific Electric Trail Safety Enhancements and Green Bike Lanes along Base Line Road
Capital projects anticipated for Fiscal Year 2019/20 include:
• Highland Avenue from Archibald Avenue to Haven Avenue Pavement Rehabilitation
• Hermosa Avenue from Banyan Street to 300 feet N/O Wilson Avenue Pavement Rehabilitation
• Church Street from Haven Avenue to Milliken Avenue Pavement Rehabilitation
• Two Traffic Signal Installations at 6th Street/Hellman Avenue and East Avenue/Highland Avenue
• Five (5) Flashing Yellow Left -Turn Arrows along Milliken Avenue and Arrow Route
• Seven (7) Flashing Yellow Left -Turn Arrows along Day Creek Boulevard and Base Line Road
• Implementation of Advance Traffic Management System Phase 1 (Haven and Foothill Corridors)
• Construction of the Etiwanda Avenue Grade Separation Project
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Transportation Development Section
The Transportation Development section of Engineering Services is staffed by a team of engineers and
customer -oriented individuals. The group provides information, direction, and superior customer support 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.
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 to customers via email, over the phone, or at the public
front counter. During Fiscal Year 2018/19, a combined total of 2,485 permits were issued through this section for
Right-of-way, Lane Closures, Oversize Load, Onsite Sewer and Water, and Grading permits.
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 with Lewis Development on the installation of the new traffic signals at The Resort
Development. The Transportation Development group assisted numerous developers and property owners with the
entitlement of their projects and is currently reviewing the technical submittals and plans 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, AB 341, AB 1836, and the National Pollutant
Discharge Elimination System (NPDES). Highlights for this year include: providing service to 7,463 participants
and processing 432,854 pounds of waste at the Household Hazardous Waste Collection Facility, conducting
926 storm water inspections, participating in 25 community events, 14 school presentations. This year the section
applied tax assessments and title liens on 661 properties to recover approximately $225,357 in delinquent trash
account payments on behalf of Burrtec Industries, the City's waste hauler.
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 over 1,000 metered customers and is continually growing. 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 by placing 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
has begun construction of the City's Fiber Optic Master Plan, which will expand the City's fiber optic network
infrastructure to key strategic areas, in a phased approach, in order to begin providing high speed broadband as an
economic development tool for City residents and businesses. The City entered into a public -private partnership
with a Rancho Cucamonga -based broadband retail provider, and is looking to begin providing service to limited
areas starting within the fourth quarter of 2019.
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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 2018/19:
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, service contracts, and materials.
The Public Works Safety Coordinator continued a systematic review, update and implementation of the
Department's Safety Procedures, in addition to presenting the regularly scheduled annual training program topics.
A new Bloodborne Pathogen Exposure Prevention Procedure was completed, and work continued with the
Regulatory Agency Inspection Procedure. Several procedures like these are required by Cal/OSHA to ensure City
staff are trained and prepared to perform their various tasks and responsibilities in a manner that always ensures
their safety. A planned update of the Confined Space Access Procedure is scheduled for Fiscal Year 2019/20.
Facilities Maintenance Division
The Facilities Maintenance Division is responsible for the operation and maintenance of 25 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:
• 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 the project was completed in Fiscal Year 2018/19.
• Public Works Services Center Warehouse Expansion — The design for the Warehouse Expansion started in
Fiscal Year 2017/18 and construction is anticipated to begin in Fiscal Year 2020/21. This new warehouse will
add approximately 24,900 square feet to the existing warehouse which is a similar size.
• City Facilities Roof Maintenance and Repair — Lions Community Centers East/West — The existing roofs on
both the east and west buildings need repair work with the bids being awarded in Fiscal Year 2018/19 and work
is anticipated to be completed in Fiscal Year 2019/20.
• Facilities Work Order Management System — A new work order management system was implemented
beginning in Fiscal Year 2018/19 to help manage work orders and gather the City's infrastructure data. Full
deployment of this system will continue into Fiscal Year 2019/20.
• Police Department Civic Center Station Carpet Replacement — With the many remodels over the years, some
areas of the carpet in the Civic Center Police Department have yet to be replaced and have been in place since
the building opened in 1990. The contract for this project was iniated in Fiscal Year 2018/19 with the
completion scheduled for October 2019.
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• Victoria Gardens Cultural Center Celebration Hall Airwall Replacement — The airwall system that is used to
divide 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 and
construction will be completed in Fiscal Year 2019/20.
• Old Town Lighting Project — The existing sports lights that provide lighting for the baseball/softball fields at
Old Town Park were replaced with light fixtures from the Epicenter Soccer fields. The design started in Fiscal
Year 2017/18 and construction was 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 was at the end of its useful life. The design for the project started in
Fiscal Year 2017/18 and will be completed in Fiscal Year 2019/20.
• In addition to the numerous capital projects, there were also several large service contracts awarded/renewed
including: electrical supplies/services, HVAC maintenance, fuel island maintenance, janitorial services,
security guard 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. Some of the more significant projects
worked on by this Division include:
• Traffic Signal Controller Cabinet Purchases — Four new traffic signal controller cabinets were purchased
during Fiscal Year 2018/19 and three new traffic signal controller cabinets will be purchased during
Fiscal Year 2019/20. These will be used to replace any cabinets damaged because of traffic collisions or
equipment failures.
• Thermoplastic Program — This program was fully implemented in Fiscal Year 2017/18 and has been very well
received. In Fiscal Year 2018/19, the streets crew removed 2,542 square feet of old thermoplastic/paint and
applied various legends (stop, stop ahead, speed limit) and crosswalks in 30 locations.
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 2018/19, a total of 3,878 catch basins were inspected, 231 catch basins required cleaning and 26
drain lines were jetted.
• 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. Several sidewalk and ADA ramp repairs were
completed during Fiscal Year 2018/19.
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Traffic Signal Battery Backup System Replacement — This 5-year project began in Fiscal Year 2018/19 and
will continue through Fiscal Year 2022/23. This project replaces all the 11-12-year-old TESCO battery
back-up systems on Foothill Boulevard. The existing units are no longer repairable and must be replaced with
a new system. The new system will place the signalized intersection in 4-way red flash during a power outage.
• Many smaller projects were completed during Fiscal Year 2018/19 including: k-rail installation, asphalt repairs,
concrete repairs, graffiti removal, street sweeping, traffic sign installations and repairs, traffic thermoplastic
legend refresh, chemical and mechanical weed abatement, debris removal, special event coverage, and on -call
emergency response for mechanics, streets, and traffic signals.
• Several service contract specifications were prepared and went out to bid during Fiscal Year 2018/19 such as
traffic signal communications and fuel island maintenance.
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, citywide 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
completed at the end of Fiscal Year 2018/19. The process employed a contract laborer equipped with a
city -issued iPad to identify the species, location, health and other data associated with each city tree. The
completion of this inventory will improve the tree maintenance process and efficiency of in-house and contract
urban forest crews, along with establishing a new comprehensive tree maintenance contract.
Wood Recycling Program — This program began in Fiscal Year 2018/19 and consisted of transforming
5,000 cubic yards of tree trunks and stumps that originated from citywide tree removals and wind damage into
5,000 cubic yards of usable wood chips which are being put directly into the city's landscape and parks to help
enhance their appearance and provide weed suppression and water savings. At the end of Fiscal Year 2018/19,
3,500 cubic yards have been incorporated into the landscape with about 1,500 to be used in Fiscal Year 2019/20.
Paseo Lighting Retrofits — Over the last several years, staff has focused on the reduction of utility costs and
the modernization of paseo, park and landscape lighting. Through these inspections, the team identified 9 paseo
locations in Landscape Maintenance District 2 (LMD 2), and during Fiscal Year 2017/18, started the removal
and replacement of the existing paseo lighting fixtures with ones that will use 33% less electricity and reduce
maintenance costs. This program continued through Fiscal Year 2018/19 and the team continues to repair and
replace fixtures as needed with energy efficient equipment.
Reforesting Projects — Two reforesting projects were completed in Fiscal Year 2018/19 that allowed for the
replacement or addition of new trees in Landscape Maintenance District 2 and along the Pacific Electric Trail.
The Urban Forestry team worked together with the Rotary Club to plant 14 new trees along the PE trail, between
Archibald and Ramona. These trees will help provide needed shade in this section of the trail.
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Urban Forestry staff also worked with Sustainable Claremont (GreenCrew) to start the process of reforesting
the Windrows Loop area of Landscape Maintenance District 2. This non-profit organization uses CalFire Grant
funds to help cities reforest their communities. This project consisted of planting 25 oaks and tristania trees
using a variety of volunteers and CalFire grant funds. This partnership will be continuing into
Fiscal Year 2019/20 in other locations throughout the City.
• Playground Area Surface Replacement — Staff completed multiple repairs and patched worn and damaged
sections of rubberized surfaces at almost every playground in the City throughout Fiscal Year 2018/19. They
also developed a list of locations where repairing and patching was no longer a viable choice for ensuring the
safety of these surfaces, and 12 park locations were budgeted for replacement during Fiscal Year 2019/20.
Water Management Projects Fiscal Year 2018/19 was the kick off year for the Water Management team to
audit proper operation and efficiency of the irrigation systems located within the citywide landscape areas and
parks. This program is part of the team's goal to reduce water use and protect our water resources. These audits
will help the team identify and schedule repairs, set the proper water application schedules, and monitor the
water use more accurately. As part of the conservation goal, the team also installed flow protection and flow
monitoring equipment at Old Town and Heritage Parks. This new equipment provides data the team will use
to adjust the amount of water being used at these parks. The auditing and flow protection programs will
continue to expand into Fiscal Year 2019/20 and beyond.
• Park Facility and Amenity Painting — During Fiscal Year 2018/19 several park structures required painting as
a result of normal wear and exposure, constant graffiti removal, failing surface protection and the need to extend
the life of the structure. Park staff enlisted assistance from volunteer groups, park neighbors, boy scouts and
religious organizations to provide painting services as a means of community involvement. This program will
continue as funding becomes available.
• Several smaller projects were completed in Fiscal Year 2018/19 throughout LMDs 2, 4, 6, 9 and 10 including:
cobble upgrades, plant material replacement and mulch replacement. These projects will continue each year.
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.
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 7,000 residents, developers, and business owners at the
counter in Fiscal Year 2018/19.
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:
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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. Additional mixed -use projects are
currently under review, including projects along two of our major corridors, Foothill Boulevard and
Haven Avenue.
• During Fiscal Year 2018/19, the Planning and Community Services Departments have teamed up to coordinate
the environmental review process for the Central Park Master Plan Update. The Environmental Impact Report
is currently being drafted 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
SBCTA and Creative Housing Associates to develop a higher density, mixed use and transit -oriented project at
the Metrolink.
• Planning staff continues to regularly update and fine-tune the Development Code to clarify standards and
respond to changing land use conditions as well as state legislation. Two separate code updates were approved
by the City Council this year. These code updates include revising standards for the development of hotels
within the city and the development of new car washes.
The continued implementation of the Community Development Block Grant (CDBG) program is facilitated by
Planning Department staff. 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 Services
The Building and Safety Services Department provides plan review, inspection, and permit activities for
construction projects to meet State Codes including building, fire, Title 24 Accessibility, energy, plumbing,
mechanical, and electrical codes.
The Department continues to enhance the functionality of the Accela permit software which 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 14,200 inspections and
issued over 4,550 permits during the Fiscal Year 2018/19.
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. An added feature
this year has been our new text hot line. By utilizing a specialized messaging program, text messages are used to
exchange information regarding inspections. This service assists staff to efficiently answer questions for the public.
All telephone calls for Building and Safety Services as well as Community Improvement are received by
administrative staff.
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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 program has enhanced the process tremendously. More than 13,000 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.
Building and Safety also plays an integral part in meeting with other Community Development Departments,
developers, and contractors creating quality 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 most effective 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:
Successful application of provisions of the Drug Abatement Act at two properties to abate criminal activity in
residential neighborhoods. The Act allows not only the prompt abatement of the drug activity, but also full cost
recovery for all legal fees and all staff time related to enforcement. Additionally, penalties may be imposed on
the parties involved in the activity and recovered from the value of the property, allowing funding for other
drug abatement projects within the City.
Continuing education and training for staff members, with four 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 increased significantly with establishment of abatement fees for services provided to remove
nuisance, hazardous, and illegal materials from private property. Increases in illegal cannabis cultivation have
impacted law enforcement, drawing countless staff hours to investigate and document these occurrences, with
the actual cost of abatement recovered through this process.
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Community Services
Senior Services
The James L. Brulte Senior Center at Central Park offers a variety of classes, services, programs, and special events,
allowing our senior community to engage socially, culturally, and intellectually. During Fiscal Year 2018/19
programs and events included the Annual Senior Health Fair, LINK program connecting volunteer callers to
homebound seniors, Food Distribution Program, Wellness Pass, various holiday celebrations, and the Annual Senior
Talent Showcase. Workshops and counseling included estate planning, HICAP Medicare information, Alzheimer
Association presentations, Elder Law Counseling, and Senior Support Groups and Counseling. The Senior
Advisory Committee continues to diversify with each ongoing recruitment, keeping ideas fresh and services relevant
for the community's Senior population. Ongoing nutrition and transportation programs continue to provide valuable
services to the community. Senior Services continued its partnership with the Family Services Association, our
regular nutrition provider, to provide a free Thanksgiving lunch for 275 seniors. 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 through the support received from hundreds of volunteers and numerous community partners.
Central Park Event Services
Central Park offers a variety of different meeting rooms, two large event halls, and a beautiful courtyard, all within
a picturesque park setting. Versatility is key with small and large rooms for meetings and events from the simple
to the extravagant, accommodating 10 to 300 guests (or more). Central Park remains a very popular location for
weddings, anniversary celebrations, birthday parties, high school proms and formals, and college commencement
ceremonies. In addition, Central Park frequently hosts special events by local representatives, professional
associations, community groups, business groups, and more! During Fiscal Year 2018/19, rooms at Central Park
were reserved a total of 812 times.
Contract Classes
More than 5,200 community members participated in the City's contract class program during Fiscal Year 2018/19.
As in previous years, the contract class program offered a variety of recreational classes, including: music, dance,
fitness, cooking, S.T.E.A.M., arts and crafts, gymnastics, modeling, and much more. New classes added this year
included: Filmmaking and Content Creator, Modeling and Etiquette 101, Fun with Public Speaking,
Drum Workshop, Violin for Two, and Ukulele. Classes were offered at multiple City facilities, parks and local
businesses. Look for even more classes to be presented in the coming year as the City continues to expand and
further enhance the contract class program.
Special Needs
Fiscal Year 2018/19 saw a huge increase in athlete participation in the City's Special Olympics Local Program. The
season ended with a total of 47 athletes with 37 participating in soccer (fall sport) and 13 participating in bocce
(spring sport). The program also saw an increase in volunteer participation, jumping from 6 to 10 volunteer coaches.
The bocce team competed in three bocce tournaments in the spring, taking home ribbons for 4th place,
two 3rd place trophies, and two 2nd place trophies. In late October, the soccer teams will compete in the
Fall Regional tournament where they will battle against other teams in the Inland Empire for the gold medal.
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The IncredABLES program as a whole continues to be one of the premier special needs programs in the
Inland Empire. The Friday Night Fun Club events consistently draw between 80 and 100 IncredABLES
participating each session. The money donated by our generous sponsor, WLC Architects, went towards adding
d6cor to our quarterly dances, dinner at more of our events, and more opportunities for our IncredABLES to do
hands-on activities which allowed them to take their projects home with them. The Special Needs Partnership
Coalition also hosted its third annual Special Needs Resource Fair, with 25 vendors participating.
The Resource Fair serviced approximately 200 community members. Through a joint effort with the Victoria
Gardens Cultural Center staff, our IncredABLES have volunteered at select performances at the Lewis Family
Playhouse. The Lewis Family Playhouse also hosted "The Magic of Kevin Spencer," a sensory -friendly magic show
for the members of our special needs community. Due to the success of "The Magic of Kevin Spencer,"
the Lewis Family Playhouse has included another sensory -friendly shows in the 2019/20 season.
Registration
The Registration Division is the main hub for the Community Services Department customer intake with staff
located at Central Park and Lions East. Registration also provides assistance to the Library, Fire District, RC Sports
Center, RC Resource Center, Lions West, and the Cultural Center. During Fiscal Year 2018/19, approximately
111,000 transactions were processed. Transactions include Contract Classes, Senior Programs, Playschool, Camps,
Rentals, Memberships, Library, Sports, Snack Bars, Gift Shop, and Drop -in Programs. The Registration Division
handled approximately $3.5 million at multiple sites throughout the City, maintained payments made via InstantRC
(over $910,000 in transactions), and awarded scholarships equaling $41,300 ($28,189 used) to 164 qualifying
Rancho Cucamonga families.
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. Overall there were a total of 565 registered participants this
Playschool session.
Over the summer, camp programs were held for youth of all ages. Lions Center East hosted a total of 2,310 youth
between the ages of 5 and 11 during the popular Summer Camp Program. The Great Outdoors theme brought back
traditional summer camp activities such as indoor/outdoor games, nature walks, fort building, and arts and crafts. At
Lions Center West, the Teen Summer Camp Program hosted a total of 211 teens between the ages of 12 and 16.
With trips to Raging Waters, Knott's Berry Farm and John's Incredible Pizza Place, our teens had a blast!
RC TeenWorks is a program dedicated to the City's teen community. Housed at Lions Center West, RC TeenWorks
offers several programs for tweens and teens, from 5th to 12th grades, to be involved in. Programs include the
Drop -in Program, Nights at the Teen Center or Teens Night Out, Volunteer Coalition and Intern Program, and the
Lewis Kids Club. At RC TeenWorks, there is something for everyone and a team of dedicated staff ensure that our
teens have a safe place to go after school.
During Fiscal Year 2018/19, the Drop -in Program serviced 2,636 teens with various activities including cooking,
painting, sports, or gaming. The RC TeenWorks team endeavors to stay relevant to our teen community in order to
better engage with them. Program staff partnered with the Library to bring their equipment to the teens once a
month and do STEM activities like robotics. During Fiscal Year 2019/20, we hope to partner with local
organizations and in-house resources so our teens can experience other services such as visits from the Fire District,
Police Department, etc.
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The Volunteer Coalition and Internship Program had 85 participants who volunteered 2,282 hours during
Fiscal Year 2018/19. Our volunteers visited Huntington Beach harbor for their Kayak Clean Up program, cleaned
up trash along the Etiwanda Hiking Trail, and assisted the Feed the Children organization by packing 700 boxes for
less fortunate families. In Fiscal Year 2019/20, the program will expand volunteer opportunities to provide
assistance to local military support groups, schools and more. In addition, the internship program will have an
increased focus on workshops preparing interns for entering the workforce.
Lewis Kids Club is a partnership between the City and Lewis Property Management. As part of the partnership,
the City hosts two afterschool programs, one at Terra Vista Apartments and the other at Del Mar Apartments.
During Fiscal Year 2018/19, there were a total of 4,606 participants in the program.
RC Family Resource Center
In Fiscal Year 2018/19, the RC Family Resource Center underwent a transformation that improved the facility's
image and ability to better serve the needs of the community. The transformation included making the center into a
more well-rounded facility where the community has access to important human services in addition to contract
classes and a rental facility for special events. During the year, the RC Family Resource Center serviced over
17,500 individuals. This included approximately 6,370 participants who received services through the food pantry,
clothing closet, emergency bags, hygiene giveaway, bread distribution, and infant care giveaway programs.
Available contract classes included fencing, retro fitness, and chair Zumba. During the year, over 190 bookings
have taken place and continue to increase. Rentals include birthday parties, company trainings, graduations,
churches, and business events.
Special Events
During Fiscal Year 2018/19, over 33,500 community members attended the Community Services 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 and Memorial Day
ceremonies, Spooktacular, Community Paint Day at Los Amigos Elementary, and Spring and Fall Movies in
Town Square at Victoria Gardens. Staff continues to enhance community events and build partnerships such as
working with Hamilton Family Brewery to bring a beer garden to Concerts in the Park and partnering with local
Veterans groups for the planning of our military appreciation ceremonies. Moving forward, there are also plans to
bring quality live entertainment to the 4th of July Fireworks Spectacular.
Park Ranger Program
The Park Ranger Program continues to enhance Rancho Cucamonga's public safety initiatives by protecting and
preserving parklands and open space, enforcing regulations, providing community education, and promoting parks
and open spaces as a vital amenity. During Fiscal Year 2018/19, Park Rangers made contact with patrons a total of
1,024 times. This included Dispatch and Sheriff calls for a variety of low-level infractions, as well as educating
Park users.
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Sports
In July 2019, the RC Sports Center opened its doors at its new location on Rochester Avenue, across from
Loan Mart Field. The new 35,000 square foot RC Sports Center includes 3 indoor basketball and volleyball courts,
3 outdoor covered and lighted basketball courts, cafe, seating area, multi -purpose room, and administration offices.
During Fiscal Year 2018/19, approximately 3,000 individual drop -in memberships were created and approximately
16,000 drop -in basketball and volleyball players utilized the gym. Rentals of the new RC Sports Center increased
significantly from the previous facility, and as a result of the new facility's opening, the sports division no longer
needed to rent a third party gym space and is able to offer sports onsite.
The Sports Division continued to offer youth basketball and volleyball programs, as well as youth clinics for
basketball, volleyball, and soccer. Also offered was pee wee soccer, baseball, basketball, cheer, and flag football.
In addition, there was also adult basketball, and the Sports Division continued to work with Major League Softball
to provide adult softball leagues. Sports also continued its relationships with the youth non-profit sports
organizations and facilitates the allocation of fields for these groups.
The RC Sports Center has the potential of being a regional event and tournament facility. As such, the
Sports Division will continue to create a multi -year programming calendar that will allow time for more facility
rentals.
Cultural and Performing Arts
The Lewis Family Playhouse kicked off the 13th Season with a rocking performance by Rock and Roll Hall of
Famers, The Zombies, and throughout the 2018/19 Season hosted a myriad of well -received, renowned artists such
as Brian McKnight, Don McLean, John Tesh, Rita Rudner, Capital Steps, and musical legends, Herb Albert and
Burt Bacharach. Family friendly programming included The Golden Dragon Acrobats, classical string duo Black
Violin, and Catapult, the shadow story -tellers. The best attended shows were Herb Alpert (97.3%), Capitol Steps
(97.0%), and Black Violin (96.8%).
The Box Office maintains a steady stream of web -sales (tickets sold on the internet). For presented and produced
public performances during Fiscal Year 2018/19, web -sales totaled 33.6%, a slight decrease from the
Fiscal Year 2017/18 total of 34.2%.
The City's own professional, nationally -recognized, MainStreet Theatre Company presented a strong three play
season beginning in October with School House Rock Live! In March, MainStreet did a special collaboration with
the Lula Washington Dance Company and presented The Snowy Day and Other Stories by Ezra Jack Keats and
concluded the season with the West Coast Premiere of Damon Chua's adaptation of The Emperor's Nightingale.
Close to 29,000 people of all ages attended MainStreet performances, including 24,211 students and teachers that
attended the 51 school performances offered. Of the people who filled out post show surveys, 30% had never seen
a MainStreet show before this season and 35% of children were seeing theatre for the first time. Survey results
showed that people were very satisfied with the artistry of the performers and the high production value of each
play. Staff observations in the lobby proved that patrons also enjoyed the pre -show 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.
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Broadway at the Gardens presented The Hunchback of Notre Dame which garnered strong public acclaim with
2,995 people in attendance. Community Theatre presented 3 performances of Shakespeare's Much Ado About
Nothing reaching 1,063 in ticket sales. The July 2018 summer family musical was a very well -received production
of Bye Bye Birdie featuring a cast of 54 with 2,485 tickets sold.
Event Services hosted over 80 external rentals including 17 Playhouse rentals, grossing over $300,000 in revenue.
The Cultural Center hosted the first wedding on the Playhouse stage which grossed $8,510, making it the third
highest grossing rental (outside of Playhouse Production Rentals). There were several graduations in the Playhouse
for many local charter and vocational schools. Inland Pacific Ballet and Valverde School for the Performing Arts
continue to produce 2 shows a year which brings in over $80,000 in revenue as well as introducing many new
patrons to the Playhouse. The Cultural Center has continued to host the annual State of the City, Staff Development
Day for Team RC, and the Community Services Department's Part Time Staff Training. The Cultural Center is the
home to many annual fundraisers including the Community and Arts Foundation's Monte Carlo Night and
MainStreet Theatre Company's For the Love of Wine. In addition, Event Services kept very busy with numerous
vendor fairs, corporate meetings, safety trainings, the Artist's Association of the Inland Empire Exhibit, Blood
Drives, and a multitude of private events from quinceaneras and sweet 16 parties to weddings to retirement banquets
to celebrations of life.
The Victoria Gardens Cultural Center remains a vibrant and active community gathering place for residents and
visitors of Rancho Cucamonga. In the Fiscal Year 2019/20 Season we hope to see more tickets sales and attract
new rental clients which will generate more revenue. With a new Manager of the Cultural Center and a new
Community Affairs Coordinator, programming and marketing materials have been infused with new strategies and
vision. Premier Catering has signed a 5-year agreement as the exclusive in-house caterer, and we hope to expand
the level of service we can provide to our guests and clients.
Police Department
The City of Rancho Cucamonga contracts with the San Bernardino County Sheriff's Department for general law
enforcement services. During Fiscal Year 2018/19, the Police Department had 141 sworn officers, 41 professional
(civilian) 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.
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.
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The Solution Oriented Policing (S.O.P.) Unit continues to improve quality of life issues with homelessness, bar
compliance, Active Shooter Training, and schoolibusiness 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 Fiscal Year 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.
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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 (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 better inform the community and implement 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, 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. Recent manmade and natural disasters remind us that large-scale threats are real. 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. Unfortunately,
one prevalent threat that has affected our society recently is active shooters. The Fire District alongside our
Police Department will continue to focus on empowering our community with proper survival strategies and
medical intervention skills should they find themselves in an active shooter scenario.
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The District continues its 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. In 2018, the Fire District
responded to 16,652 incidents.
During Fiscal Year 2018/19, District staff accomplished the following to maintain and improve existing services
levels in accordance with Council approved goals:
• Completed the 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, which went out to bid
for a construction contract. Construction of the new Public Safety Facility is anticipated to be completed by
winter of 2021.
• Received delivery of and placed into service a new replacement fire engine.
• Processed a Request for Proposal to replace existing cardiac monitors/defibrillators that were at their end of
life, with a state-of-the-art platform that provides real-time feedback on the effectiveness of Cardio Pulmonary
Resuscitation (CPR). This technology will support the Fire District's High -Performance CPR initiative.
• Processed a Request for Proposal and ordered a replacement off -road command vehicle.
• Replaced the second half of the District -wide Mobile Data Computers (MDCs).
• Replaced three aging staff vehicles with eco-friendly green electric vehicles.
• In support of disaster resiliency, purchased 11 - 800 MHz portable radios for city wide communication in the
event of a disaster that eliminates other forms of communication.
• Maintained Community Facility District (CFD) fees at same level as the prior fiscal year.
• Continued waiving the collection of Fire Inspection and Permit Fees.
Library Services
The Library Services Department experienced exciting changes and new services in Fiscal Year 2018/19. The
Library checked out approximately 991,500 books, DVDs, CDs, eBooks, and magazines, and issued over 11,000
new library cards. Over 73,000 people used a Library computer, and nearly 35,000 children attended a Library
program. Currently, over 313,000 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 35,000 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 4,330 children and teens taking
part in the program. The SRP is crucial to helping students maintain their reading skills during the summer
months.
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• 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 $111,700. Donors
supplying prizes included: Benihana, Mimi's Cafe, Corky's Kitchen, Rubio's, the Rancho Cucamonga Quakes,
Rock and Brews, Boomers, and The Old Spaghetti Factory.
• 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 47,000 items to children during this past
fiscal year. After more than 15 years of service to Rancho Cucamonga schools and childcare centers, a
refurbishment of the bookmobile is currently underway.
Outreach Services
The Library had many outreach visits in Fiscal Year 2018/19, 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 150,000 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 800 children, teens and adults took
advantage of free, hands-on computer classes.
• The Library received a $4,000 grant from the California State Library which was used for the creation of
circulating hobby kits called RC Kits. This resource allows users to take home all the materials needed to try a
new hobby or to learn a new skill.
• In Fiscal Year 2018/19, staff processed nearly 3,800 passport applications. The Library began using an online
reservation system to automate and manage passport appointments, which resulted in substantial service
efficiencies and improved customer experiences.
• The Library expanded eBooks services in Fiscal Year 2018/19 by adding cloudLibrary services. This eBook
collection contains contemporary titles, and card holders may use the service to borrow eBooks from other
cooperating California public libraries. This service provides expanded access to titles with reduced wait times.
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 and Beyond
• The Second Story offered 88 programs and contract classes with a total attendance of over 3,200 in Fiscal Year
2018/19.
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Staff began working with a consultant to develop parameters for an RFP for tenant improvements and design
services for museum quality exhibits.
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, teen services, 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 $142,000 for
the Library in Fiscal Year 2018/19.
Library Foundation
The Library Foundation held multiple fundraising events to cultivate potential major donors and partnerships, and
raised over $1.5M in donations, meeting their Second Story and Beyond Capital Campaign fundraising goal.
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:
Community Affairs
The mission of the Community Affairs 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 Community Affairs 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.
Community Affairs highlights include:
• An increase of 12% or 2,100 subscribers to the City's primary email distribution system for electronic
newsletters using GovDelivery.
• Ongoing community engagement for the Etiwanda Heights Neighborhood and Conservation Plan.
Increase in net social media followers by 21% or 7,300 individuals; more specifically, Instagram platform
growth increased by 68% or 2,600 new followers as a result of increased and strategic use of Instagram Stories
for outreach.
• Coordinated multi -department effort to plan and design the new City website.
• Established the internal Community Affairs Network, bringing together key staff from each department to better
understand communication needs as a whole.
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:
With the help of a grant from the Southern California Association of Governments (SCAG), Healthy RC was
able to host the first ever CommUNITY Paint Day event in September 2018. Paint Day was an intimate
neighborhood event where neighbors were able to come out and spend the day painting a mural on the asphalt
in the intersection of Baker Avenue and 9th Street, by Los Amigos Elementary School. The day was filled with
music, healthy food demonstrations, bicycle safety lessons, crafts, and of course mural painting! The mural is
a part of the City's efforts to develop placemaking project to help heighten a sense of community and liven
public space for all to enjoy.
• Through needs assessment survey conducted as a part of the Community Schools Model partnership with
Los Amigos Elementary School, it was found that programs surrounding positive mental health were desired.
Healthy RC was able to apply for and receive a grant from Kaiser Permanente to provide Mindfulness
Curriculum to teachers and administrators at Los Amigos Elementary which they implemented throughout the
2018/19 school year. The program has been a big hit with both teachers and students, with positive results
being reported, and we are looking to continue efforts related to mindfulness and Community Schools with
other schools throughout the City in the future.
In March 2019, Healthy RC hosted the second annual Teen Summit titled "Own It, Your Story Matters", at the
Central Park Recreation 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 Teen Quality of Life Survey was distributed to two high schools in the Chaffey Joint Union High School
District as well as to private and home -schooled high school students in the spring of 2019. A total of 1,259
survey responses were received providing insight into some of the challenge's teens face on a daily basis. This
survey along with the annual Teen Summit help to strengthen the understanding of teen community needs and
their overall quality of life.
In May of 2019 the Healthy RC team organized and held the first ever Health Equity Summit, which consisted
of a poverty simulation to demonstrate some of the difficulties families and individuals may face when living
with limited resources. The Summit was attended by over 100 participants who were able to spend a day living
a fast -paced month in the life of a person or family struggling to make ends meet. The event was eye opening
for those in attendance, and we are hoping to be able to continue to host these summits in the future.
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This year staff was able to work with a handful of interns to complete a Municipal Greenhouse Gas (GHG)
inventory, which measures historical trends in emissions related to City facilities and operations. 2016 was
selected as the initial base year from which to measure and staff recently completed data collection and analysis
for 2018. The comparison showed a 10% reduction in Municipal GHG emissions; a big win for RC!
• Energy Efficiency Revolving Funds (EERF) are accounts that are specifically created to maintain an allocation
of funding to be spent on projects that improve the energy efficiency of City facilities and operations. This
year, staff worked together to create an EERF so that the City could continue efforts to reduce GHG emissions.
The EERF was made possible with the completion of the City's street light retrofit project which provided a
rebate that provided starter funds for the EERF.
Legislative Affairs Pro rg am
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 38 bills were tracked during the Fiscal Year 2018/19 Legislative Session including 20 Assembly Bills
(AB), 14 Senate Bills (SB), and 4 Federal bills. Position letters were sent to the State supporting 7 bills, opposing
10 bills, and officially watching the remaining.
Additionally, as the City Council actively participates in regional agencies and boards, the City Manager's Office
provides assistance and support to assist the Council in these positions. The inter -governmental agencies the City
participates in include San Bernardino Council of Governments (SBCOG), Omnitrans, Southern California
Associated Governments (SCAG), and Metrolink. City officials are also actively involved in, and have taken on
several leadership positions with, the League of California Cities, a statewide association that advocates for the
interest of cities. 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.
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During Fiscal Year 2018/19, the City Clerk's Office improved service delivery by completing the following:
• Administered the first `By District" election (November 2018) for the City of Rancho Cucamonga.
• Facilitated November 2018 Municipal Election for two seats on the City Council (District 2 & 3), including
candidate orientations/processing, State/Local Campaign Disclosure responsibilities, and City Council
Reorganization.
• Continued to implement electronic improvements to City Council and Board/Committee/Commission agenda
compilation/publishing and related document management including training to citywide staff on the new
software and agenda process.
• Updated the City's Conflict of Interest Code and the annual filing of Conflict of Interest Statements within the
statutory deadline.
• Increased customer/citizen research methodologies by providing access to public records within the City's
Document Imaging System via Weblink (RC Docs) made available on the City's webpage.
• Implemented the City's new Records Management Manual involving records storage, retrieval, retention and
destruction; and provided training on records management including electronic scanning of documents while
ensuring compliance with City, State, and Federal regulations.
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 creating a PAWsitive impact by enriching the
lives of animals and people. 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, and enforcing animal laws.
Animal Care
The Animal Care and Veterinary Divisions provide day-to-day care of a variety of species of animals. In
Fiscal Year 2018/19, the Veterinary Division purchased new veterinary dental equipment. The dental equipment
increased the number of specialized dental surgeries performed in-house which reduced veterinary costs. 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
In Fiscal Year 2018/19, the Animal Center restructured a vacant position and hired a dedicated Animal Rescue
Specialist. The Animal Rescue Specialist's role is to increase the number of rescue partners who assist the Center
with the adoption of animals with behavioral or medical conditions. In addition, 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. Additionally, the Animal Center
hosted several large adoption events and fundraisers such as Beer Kitty Kitty (at a local Brewery) Catoberfest, and
Kitten Yoga to offset the cost of the Kitten Nursery's operations.
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Community Involvement
Community involvement is an important part of the Animal Care and Services Department. This includes the
development of a strong volunteer program and a foster care program, as well as 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 2018/19, volunteers donated more than 12,500 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 2018/19, the Animal Care
Foundation hosted several fundraisers including a Bone Appetito (wine event), Paint Your Pet (paint a portrait of
your pet), 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.
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 2018/19. A summary of each of these
projects by division follows.
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 2019 Digital Cities Survey.
Accomplishments for the Department include:
• Completion of the City website rebuild to a fully -hosted, open -source content management system and
mobile -first design.
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• Completion of the City's data center refresh, updating the technology to hyper -converged architecture and
building in resiliency with the Fire District Backup Data Center.
• Significant updates to enterprise platforms including OneSolution Financials, Laserfiche document
management, Chameleon Animal Center Management, and Accela land management.
• Near completion of the user workstation replacement project, updating over 1,000 personal computer devices
citywide to current Windows 10 operating system and right -sizing device deployments based on user needs.
• Implementation of additional network security protocols to prevent unauthorized devices from accessing the
City's data network.
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 31st 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 6th consecutive GFOA Distinguished Budget Presentation Award.
In anticipation of the bond sale for the Fiber Optic Network, the Finance Department meet with Standard & Poors
in the fall of 2018 to discuss the City's credit rating, and in reflection of the City's conservative fiscal policies and
performance, the City's credit rating was upgraded from AA- to AA+. This is the second highest credit rating
possible, exceeded only AAA, which very few cities in California obtain.
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 2018/19, staff processed approximately
11,593 business license applications (9,586 renewals and 2,007 new filings), inspected 1,361 businesses, and
collected revenues totaling $2,708,314. The Division equipped staff with handheld ticket writers to better manage
business license enforcement throughout the City. The ticket writers create a digital record and streamline the
manual process of documenting and organizing their enforcement efforts through the issuance of Administrative
citations.
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 2018/19, 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 $28.52 million for approximately 135,000 parcels.
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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 Fire District bargaining units, resulting in labor agreements through
June 2023, and negotiations with Teamsters Local 1932 bargaining unit resulting in a labor agreement through
June 2021.
• Expanded social media marketing to increase applicant engagement and improve recruitment efforts. Weekly
activity posts on social media include Tip Tuesday, Wisdom Wednesday, Thursday Job posts, and Feature
Friday. Social media engagement increased 20.6%.
• Enhanced recruitment processes by providing training for hiring Managers on Modern Workforce and
Succession Planning, collaborating with hiring managers on creating more modern and attractive job
announcements, and hosting one -day hiring fairs to improve time -to -fill for part time recruitments.
• Initiated new Onboarding program survey to measure level of effectiveness. Results indicated an overwhelming
positive response in the new hire experience, increased engagement, and improved new employee's first year
performance outcome.
• Implemented Performance Management software program to better manage employee performance outcomes,
provide more meaningful and timely feedback to employees, and better tracking of employee goals.
• Expanded the City's volunteer intern program which provides students with work experience and development
of new skills, while helping City departments manage projects that enhance City programs and services.
• Initiated Retirement Plan Committee to oversee the operations and management of employees' retirement
savings plan to meet our fiduciary duties.
• Continued oversight of employee 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, Dress for Your Work Day Policy and HR2U; enhanced the annual New Employee Mixer
and initiated the Doggy Day Fair.
• Continued employee wellness programs to assist employees with health and well-being initiatives including
"Know Your Numbers" campaign, Flu Shots, Biggest Loser Challenge, Annual Employee Health Fair,
Lunch and Learns, Peloton, Healthy Newsletters, and on -site Pilates.
• 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.
Initiated workplace harassment training of all employees to comply with new law. Rather than relying solely
on external trainers to meet the new law, employees John Gillison, Lori Sassoon and Jenifer Phillips were
certified to conduct mandatory harassment training for the City. Together they have conducted a total of eight
trainings, which resulted in a savings of approximately $20,000. 80% of City staff have completed the
mandatory Harassment training and one additional training was scheduled in November 2019.
• Established a partnership with Kaiser Permanente whereby they have provided free lunch and learn discussions,
which have included several topics such as Achieving Wellness & Maximizing Your Kaiser Health Plan, Stress
Management/Mental Health, and Men's Health (Prostate Cancer).
• Implemented Learning Management software program to better assign and track employee trainings including
mandated trainings and trainings for personal and professional development.
• Worked with DoIT to implement Risk Management viewer in GIS for general liability claims. The purpose of
this program is to identify the problem areas within City and to track type of claims.
The Risk Management Division of the Human Resources Department is responsible for ensuring employee safety,
the prompt and fair delivery of workers' compensation benefits, risk assessment and cost-effective risk transfer
when appropriate, litigation management, and the fair and fiscally responsible analysis of third -party claims.
Procurement Division
The Procurement Division 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 2019 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-six (46) agencies in California and one of only sixty-seven (67) cities in the United States and Canada to
receive the award. This is the eleventh 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 generating $71,805 in
additional revenue for the City.
• The Procurement Division conducted 9 Request for Quotes, 19 Request for Bids, 26 Request for Proposals and
1 Statement of Qualifications, and processed 496 purchase orders for a total spend amount of $41,676,840.
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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, 2018. 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-one consecutive years. We believe that our current comprehensive
annual report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to
the GFOA to determine its eligibility for another certificate.
The preparation of this report could not have been accomplished without the efficient and dedicated service of the
entire staff of the Finance Department and the administrative staff of the Administrative Services Group. We
appreciate and would like to commend all the City departments who assisted and contributed material to this
document. We also recognize and would like to acknowledge the Mayor and members of the City Council for their
interest, dedication, and constant support in planning and conducting the financial operations of the City in a
responsible and progressive manner.
Respectfully submitted,
John R. Gillison
City Manager
Tamara L. Layne
Finance Director
CITY OF RANCHO CUCAMONGA
CITY OFFICIALS
DUNE 30, 2019
City Council
Name
Term Expires
L. Dennis Michael
Mayor
2022
Lynne B. Kennedy
Mayor Pro Tern
2020
Ryan A. Hutchison
Council Member
2022
Kristine D. Scott
Council Member
2022
Sam Spagnolo
Council Member
2020
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
Animal Services Director
Veronica Fincher
Building and Safety Services Director
Vacant
Community Services Director
Jennifer Hunt-Gracia
City Clerk Services Director
Linda Troyan
Engineering Services Director/City Engineer
Jason Welday
Finance Director
Tamara L. Layne
Fire Chief
Ivan Rojer
Human Resources Director
Robert Neiuber
Information Technology Director
Darryl Polk
Library Director
Julie Sowles
Police Chief
Donny Mahoney
Planning Director (hired August 2019)
Anne McIntosh
Public Works Services Director
Bill Wittkopf
CITY OF RANCHO CUCAMONGA
ORGANIZATION CHART
Citizens
of
Rancho Cucamonga
City Clerk I I City Council I I City Treasurer
City
Attornev
City Manager
Administrative
Civic and
Police Economic and
Services
Cultural Services
Department Community
Admin/Procurement
Development
Fire
Community
District
Finance
Services
Animal Care
Human
Library
and Services
Resources
Services
Community
Innovation and
I
Records
Improvement
Technology
Management
Building and I I Engineering Planning I I I I Public Works
Safety Services Services
E 0 k
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, 2018
CAU&P44'.. P. *Mow
Executive Director/CEO
City of Rancho Cucamonga
Comprehensive Annual Financial Report
June 30, 2019
Financial Section
THIS PAGE INTENTIONALLY LEFT BLANK
LSL•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, 2019, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City'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.
PrirneGlobal
LSU9:::
To the Honorable Mayor and Members of the City Council
City of Rancho Cucamonga, California
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City of Rancho Cucamonga, California, as of
June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof
for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis; the budgetary comparison schedules for the General Fund, Development Impact
Fees, Lighting Districts, Housing Successor Agency and Fire District; the schedule of changes in net
pension liability and related ratios for the agent multiple -employer plan; the schedule of plan contributions
for the agent multiple -employer plan; the schedule of proportionate share of the net pension liability for
the cost sharing multiple -employer plans; the schedule of plan contributions for the cost sharing multiple -
employer plans; the schedule of changes in net pension liability and related ratios for PARS retirement
enhancement plan; the schedule of plan contributions for PARS retirement enhancement plan; the
schedule of changes in net OPEB liability and related ratios; and the schedule of contributions — OPEB 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, budgetary schedules and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
2
LSU9:::
To the Honorable Mayor and Members of the City Council
City of Rancho Cucamonga, California
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 9, 2019 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 internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of the City's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City's internal control over financial reporting and compliance.
Brea, California
December 9, 2019
3
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City of Rancho Cucamonga
Management's Discussion and Analysis
Year Ended June 30, 2019
As the 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,
2019. Since the Management's Discussion and Analysis (MD&A) is designed to focus on the current year's
activities, the resulting changes, and currently known facts, we encourage the readers to consider the
information presented 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 $1,277,126,391. This amount is reported as the total net position for the City. The
total net position consists of the following: $821,448,703 is net investment in capital assets;
$347,762,756 is restricted net position; and $107,914,932 is unrestricted net position.
• The City's net position increased by $7,290,810. This change is comprised of net increases of
$4,657,135 in governmental activities and $2,633,675 in business -type activities.
• The Development Impact Fees Special Revenue Fund is reported as one of the major governmental
funds as of June 30, 2019, due to the management's decision to consolidate funds that were similar in
nature for financial statement presentation. The Development Impact Fees Fund has a fund balance
of $55,817,514 as of June 30, 2019.
• The Lighting Districts Special Revenue Fund has a deficit fund balance of $5,587,105 due to the
interfund advances from the General Fund associated with the purchase, acquisition, and retrofit of
citywide streetlights. The interfund advance is described in Note 6 of the notes to financial statements.
• The governmental funds reported a combined ending fund balance of $478,117,692, an increase of
$37,288,916 from the prior fiscal year. The General Fund represents $118,780,845 of that total fund
balance and consists of the following: $15,996,673 is nonspendable fund balance, $10,000,335 is
restricted fund balance, $72,103,374 is committed fund balance, and $20,680,463 is assigned fund
balance. The fund balance of the General Fund increased by $3,698,752, or 3%, from the prior fiscal
year.
Overview of the Financial Statements
The City is required to present its financial statements in accordance with Generally Accepted Accounting
Principles (GAAP), which includes complying with the Governmental Accounting Standards Board (GASB)
pronouncements.
Government -wide Financial Statements
Government -wide financial statements provide readers with a broad overview of the City's finances in a
manner similar to that of a private -sector business. These statements include the City and its component
units. As stated in Note 1 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
5
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 the 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 the 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 fiscal
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, long-term
debt, net pension liabilities, etc.).
The government -wide financial statements distinguish functions of the City that are principally supported
by general revenues such as taxes, intergovernmental, and use of money and property (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), Fiber Optic Network,
and Rancho Cucamonga Enterprise Geographic Information Systems (REGIS) Connect.
The statement of net position presents information on all of the City's assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the excess of total assets and deferred outflows of
resources over total liabilities and deferred inflows of resources reported as net position. This statement
includes changes in capitalized and depreciated capital assets. The purpose behind the statement of net
position is that, over time, increases or decreases in the net position are an indicator of whether the financial
position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows (both positive and negative) in
future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both the governmental activities and the business -type activities are presented on the accrual basis of
accounting. Proprietary funds, which are discussed below, also follow the accrual basis of accounting.
The government -wide financial statements can be found on pages 27 through 29 of this report
Fund Financial Statements
The fund financial statements provide a more detailed look at the City's most significant activities. A fund
is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The City, like other state and local governments, uses fund accounting
to ensure and demonstrate compliance with finance -related legal requirements. The fund financial
statements provide detailed information about the most significant funds and other funds. Some funds are
required by state law and by bond covenants. In addition, in order to meet legal responsibilities for using
certain taxes, grants, and other resources, prudent fiscal management requires the establishment of other
funds to help control and manage money. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, or fiduciary funds.
0
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, which the City deems to
be 60 days after the end of the current fiscal period, except for sales tax and grant revenues which is 180
days after the end of the current fiscal period, to pay liabilities of the current period. Expenditures are
recorded when a liability is incurred. However, expenditures for debt service, claims and judgments, and
accrued employee leave benefits are not recorded as liabilities and are expensed at the time a payment is
due. Note 1 of the notes to financial statements 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 35 and 39).
The City reports 32 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, Development Impact Fees Special Revenue Fund, Lighting Districts Special
Revenue Fund, Housing Successor Agency Special Revenue Fund, and 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 27 governmental funds are combined into a single,
aggregated presentation. The financial statements for the governmental funds can be found on pages 30
through 37. Individual fund data for each of the non -major governmental funds is provided in the form of
combining statements which can be found on pages 124 through 138.
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 105 through 109.
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 the operations of its Sports Complex, RCMU, Fiber Optic Network, and REGIS Connect.
Internal service funds, by contrast, are an accounting mechanism used to accumulate and allocate costs
internally among the City's various functions. The City uses internal service funds to account for
vehicle/equipment replacement and computer equipment/technology replacement. Because these services
predominantly involve governmental rather than business -type activities, this fund type has been included
within governmental activities in the government -wide financial statements. Internal service funds are
presented as proprietary funds because both enterprise and internal service funds follow the accrual basis
of accounting.
In the fund financial statements section, proprietary funds provide similar information to that contained in
the business -type activities in the government -wide financial statements, only in more detail. The
proprietary fund financial statements provide separate information for the operations of the Sports Complex,
RCMU, Fiber Optic Network, and REGIS Connect. The Sports Complex, RCMU, and Fiber Optic Network
are considered to be major funds of the City while REGIS Connect is reported as a non -major fund. 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 166 through 168.
The basic proprietary fund financial statements can be found on pages 40 through 47.
7
Fiduciary funds. Fiduciary funds are used to account for resources held in a trustee or agency capacity
for others and, therefore, cannot be used to support the government's own programs. Activities reported
in this category include special deposits, assessment districts, and the Successor Agency of the Former
Redevelopment Agency. As of January 11, 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 17 in the
notes to financial statements for more information. 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 fund category are accounted for in agency funds. 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 they have no measurement focus. The City's fiduciary activities are reported in a
separate statement of fiduciary net position on page 48. Individual fund data for each agency fund is
provided in the form of combining statements found on pages 172 through 182.
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. Notes to financial statements begin on page 51.
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 fiscal year has been presented in the summary tables and
charts. An analysis of the significant increases/decreases from the prior fiscal year is provided below.
Net position, the difference between a government's assets and deferred outflows of resources and its
liabilities and deferred inflows of resources, 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 indicate that as of June 30, 2019, total assets and deferred outflows of resources,
of which 58% represents net capital assets of the City, exceed total liabilities and deferred inflows of
resources by $1,277,126,391.
0
The table below is a condensed version of the City's statement of net position for the fiscal year ended
June 30, 2019, with comparative data from the previous year.
Net Position
June 30, 2019
(In Thousands)
Governmental
Business -Type
Acti\nties
Acti\nties
Total
2019
2018
2019
2018
2019
2018
Current and other assets
$ 526,218
$ 492,081 $
34,204 $
19,175
$ 560,422 $
511,256
Net OPEB asset
21
-
-
-
21
-
Net pension asset
3,278
448
192
23
3,470
471
Capital assets, net
788,861
819,589
35,442
33,679
824,303
853,268
Total assets
1,318,378
1,312,118
69,838
52,877
1,388,216
1,364,995
Deferred outflows related to OPEB
681
1,054
-
-
681
1,054
Deferred outflows related to pension
25,307
29,869
798
947
26,105
30,816
Total deferred outflows
25,988
30,923
798
947
26,786
31,870
Current and other liabilities
13,788
20,072
2,227
1,626
16,015
21,698
Long-term net OPEB liabilty
-
291
-
-
-
291
Long-term net pension liabilities
83,184
82,436
2,424
2,456
85,608
84,892
Long-term obligations outstanding
16,105
14,970
13,556
-
29,661
14,970
Total liabilities
113,077
117,769
18,207
4,082
131,284
121,851
Deferred inflows related to pension
6,306
4,946
285
232
6,591
5,178
Total deferred inflows
6,306
4,946
285
232
6,591
5,178
Net position:
Investment in capital assets
786,942
819,589
34,507
33,679
821,449
853,268
Restricted
347,134
314,706
630
735
347,764
315,441
Unrestricted
90,907
86,031
17,007
15,096
107,914
101,127
Total net position
$ 1,224,983
$ 1,220,326 $
52,144 $
49,510
$ 1,277,127
$ 1,269,836
.0
The chart below displays the proportionate sections of the City's net position.
Net inve
capital
64,32%
Investment in Capital Assets
Restricted for:
Community development projects
Public safety
Parks and recreation
Fire protection
Engineering and public works
Community services
Capital projects
Public benefit - Municipal Utility
Unrestricted
Total Net Position
Net Position
June 30, 2019
.$1.277.126.391
Unrestricted
Restricted
27.23%
Net Position
June 30, 2019
(In Thousands)
Governmental Business -Type
Activities Activities _
$ 786,942 $ 34,507 $
L
Total
1,449
182,970
- 182,970
1,108
- 1,108
8,328
- 8,328
43,671
- 43,671
70,359
- 70,359
7,427
- 7,427
33,271
- 33,271
-
630 630
90,907
17,007 107,914
$ 1,224,983 $
52,144 $ 1,277,127
Community development
projects 14.33%
Public safety 0.09%
Parks and recreation
0.65%
* Fire protection 3.42%
■ Engineering and public
works 5.51 %
■ Community services
0.58%
■ Capital projects 2.61 %
■ Public benefit - Municipal
Utility 0,05%
Percent (%) of
Total Net
Position
64.3%
14.3%
0.1%
0.7%
3.4%
5.5%
0.6%
2.6%
0.1%
8.4%
100.0%
The largest portion of the City's net position represents the City's net investment in capital assets in the
amount of $821,448,703, which is comprised of $786,942,172 for governmental activities and $34,506,531
for business -type activities. This classification of net position is approximately 65% of the 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.
10
The City's restricted net position amounts to $347,762,756, which is comprised of $347,133,366 for
governmental activities and $629,390 for business -type activities. This classification of net position is
approximately 27% of the 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 $107,914,932, which is comprised of $90,907,741 for governmental
activities and $17,007,191 for business -type activities. This classification of net position is approximately
8% of the 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 2018/19, the City's total net position increased by $7,290,810, which is comprised of
increases of $4,657,135 in governmental activities and $2,633,675 in business -type activities. The current
fiscal year's change in net position is, however, a 37% decrease from the prior fiscal year's change in net
position.
Total assets for the current year were $1,388,215,929, an increase of $23,220,529 to the City's net position,
or a 2% increase from the prior fiscal year. The increase in total assets is due to the following: an increase
in current and other assets by $49,166,386; an increase in the net pension asset of $2,998,082; and a
decrease in net capital assets of $28,964,980.
Current and other assets for the current year were $560,422,260 which is an increase of $49,166,386,
or 10%, from prior fiscal year's balance of $511,255,874. This increase is due to the following: an
increase in overall cash and investments of $20,599,743; an increase of $12,023,922 in notes and
loans receivables due to new notes to Day Creek Senior Housing Partners, L.P. and Day Creek Senior
Housing Partners 2, L.P. from the Housing Successor Agency Special Revenue Fund; an increase in
restricted cash and investments with fiscal agents for governmental activities of $4,444,488 in Housing
Successor Agency Special Revenue Fund for an escrow account established for a low-income housing
project; and an increase in restricted cash and investments with fiscal agents for business -type activities
of $12,620,653 in the Fiber Optic Network Fund related to the issuance of the 2019 Lease Revenue
Bonds.
• The net pension asset increased by $2,998,082, or 636%, to $3,469,467. This was largely due to
strong actual investment income, which coincides with the updated discount rate assumption of 6.00%
from 5.75% in the actuarial valuation as of June 30, 2018, which increased the fiduciary net position of
the PARS Retirement Enhancement Plan. However, other changes in assumptions for demographic
and mortality scale tables reduced the total pension liability.
Capital assets net of accumulated depreciation for the current year were $824,303,161, which is a
decrease of $28,964,980, or 3%, from the prior fiscal year's balance of $853,268,141. The overall
decrease is due to the net of the following: an increase in land for the purchase of property on Haven
Avenue between Foothill Boulevard and Civic Center Drive in the amount of $5,202,315; a decrease in
construction -in -progress for project costs incurred for the Base Line Road at 1-15 Interchange project
which resulted in the write-off of $36,406,951 for portions of the project that are considered capital
assets of other entities, and is reported as a special item that can be found in Note 16 of the notes to
financial statements; an increase in construction -in -progress of $4,768,230 for various street
improvement projects; an increase in various building improvements in the amount of $1,382,938; an
increase in equipment and vehicles in the amount of $6,103,849 due primarily to the purchase of the
Fire District back-up data system center, five vehicles for public works, and a fire engine truck; an
increase in infrastructure from various projects in the amount of $8,419,064 of which $2,331,300 are
donated infrastructure from developers; and depreciation expense of $19,516,552 in the governmental
activities and $1,696,872 in the business -type activities.
11
Deferred outflow of resources are $26,786,489, a decrease of $5,083,342 to the City's net position, or 16%,
from the prior fiscal year amount, and deferred inflow of resources are $6,591,339, a decrease to the City's
net position of $1,412,742, or 28%, from the prior fiscal year amount. These changes were solely related
to deferred outflows and inflows related to the City's pension and other post -employment benefits. See
Notes 11, 12, and 13, as applicable, of the notes to financial statements for more information.
Total liabilities for the current year were $131,284,688, an increase of $9,433,635, or 8% increase from the
prior fiscal year's amount of $121,851,053. The most significant components of the change are due to the
following: a decrease in current and other liabilities by $5,682,691 and an increase in long-term obligations
outstanding of $14,690,641.
• Current and other liabilities for the current year were $16,015,380. This is a decrease of $5,682,691,
or 26%, from prior fiscal year balance of $21,698,071, which is primarily due to the timing of cash
disbursements at year-end, causing a reduction in accounts payable in governmental activities in the
amount of $5,452,162.
• During Fiscal Year 2018/19, the City entered into two new long-term debt obligations: 1) a capital lease
in the governmental activities for Dell blade servers and software for $2,446,503 and 2) the 2019 Lease
Revenue Bonds in the business -type activities for $13,555,938. More information can be found in Note
7 of the notes to financial statements.
12
Below is the condensed statement of activities of the City's governmental and business -type activities for
the year ended June 30, 2019.
Revenues:
Program Revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues:
Taxes:
Property taxes
Admissions tax
Transient occupancy taxes
Sales taxes
Franchise taxes
Intergovernmental - Motor vehicle in -lieu
Use of money and property
Other
Gain on sale of capital asset
Total revenues
Expenses:
General government
Public safety - police
Public safety - fire protection
Public safety - animal center
Community development
Community services
Engineering and public works
Interest on long-term debt
Sports Complex
Municipal Utility
REGIS Connect
Fiber Optic Network
Total Expenses
Increase (decrease) in net position
before transfers and extraordinary
Changes in Net Position
Year Ended June 30, 2019
(In Thousands)
Governmental
Activities
2019 2018
Business -Type
Activity
2019 2018
Total
2019 2018
$ 34,206
$ 29,384
* $ 13,426
$ 12,669
$ 47,632
$ 42,053
10,962
8,846
-
-
10,962
8,846
17,348
16,584
663
679
18,011
17,263
75,480
72,760
* -
-
75,480
72,760
7
6
146
62
153
68
4,054
3,578
-
-
4,054
3,578
32,803
31,478
32,803
31,478
8,000
7,998
8,000
7,998
85
93
-
-
85
93
19,113
5,781
850
391
19,963
6,172
7,764
7,955
-
601
7,764
8,556
58
-
-
-
58.00
-
209,880
184,463
15,085
14,402
224,965
198,865
19,671
31,792
-
-
19,671
31,792
40,690
38,576
40,690
38,576
37,964
34,558
37,964
34,558
3,308
3,263
3,308
3,263
17,684
16,675
17,684
16,675
18,442
19,060
18,442
19,060
30,443
31,574
30,443
31,574
233
214
-
-
233
214
-
-
2,746
2,852
2,746
2,852
9,408
8,419
9,408
8,419
19
105
19
105
658
145
658
145
168,435
175,712
12,831
11,521
181,266
187,233
item
41,445
8,751
2,254
2,881
43,699
11,632
Transfers
(381)
(676)
381
676
-
-
Special item
(36,407)
-
-
-
(36,407)
-
Increase (decrease) in net position
4,657
8,075
2,635
3,557
7,292
11,632
Net Position at Beginning of Year
1,220,326
1,226,519
49,509
45,278
1,269,835
1,271,797
Restatement of Net Position
-
(14,268)
-
675
-
(13,593)
Net Position at End of Year
$1,224,983
$1,220,326 $
52,144
$ 49,510
$1,277,127
$ 1,269,836
* 2018 was adjusted to reflect a change in the
classification
of special benefit assessments
from the Lighting
Districts and
Landscape
Maintenance Districts Special Revenue Funds.
The condensed statement of activities above shows the total net position increased by $7,290,810.
Governmental activities increased the City's net position by $4,657,135, accounting for approximately 64% of
the total growth in net position, paired with an increase of $2,633,675 in the business -type activities' net position.
13
Governmental Activities
The following charts provide a snapshot of the City's governmental activities for Fiscal Year 2018/19,
showing the distribution of revenues by source, as well as a comparison of revenues versus expenses by
the program.
Other
s 7rk,
use of Money an
9.1%
Capital
Contributions
and Grants
8.3%
operating
Contributions
and Grants
5.2%
Charges f
16
.w«U1046 �u
s1isO,ovv
g}eta G�
512O, 000
5100,000
s80,000
Revenues By Source
Governmental Activities
Year Ended June 30, 2019
$209,879.895
Property taxes
36.0%
tax
end
incy
s
6
5
Revenue and Expense By Function
Govemmental Activities
Year Ended June 30, 2019
(In Thousands)
Franchise taxes
3.8%
s60,000
$40,0O0
Engheemg
General
General
Public safety-
Public safety-
Pubbc safety-
communty
Cvrnmunty
and public
lnlarest on Revenues.
govemmant
police
fire protecton
animal center
daVelapmeill
services
works
long-term debt special Item,
and Transfers
Revenues
$8J604
1.948
580
215
12,430
4.217
34.520
- $147.365
Expenses
s19,671
40,090
37,984
3,3m
17,884
18.442
30,443
233 s3$,790
a Revenues r Expenses
14
Governmental Activities
(In Thousands)
Total Cost
Net Cost
of Services
of Services
2019
2018
2019
2018
General government
$ 19,671 $
31,792
$
(11,067)
$
(24,488)
Public safety -police
40,690
38,576
$
(38,742)
$
(36,614)
Public safety -fire protection
37,964
34,558
$
(37,384)
$
(34,216)
Public safety -animal center
3,308
3,263
$
(3,093)
$
(3,051)
Community development
17,684
16,675
$
(5,254)
$
(4,937)
Community services
18,442
19,060
$
(14,225)
$
(15,176)
Engineering and public works
30,443
31,574
$
4,077
$
(2,204)
Interest on long-term debt
233
214
$
(233)
$
(214)
Total
$ 168,435 $
175,712
$
(105,921)
$
(120,900)
The City's governmental activities increased its net position by $4,657,135 at the end of the fiscal year.
This change is comprised of a net cost of services of $105,920,361 offset by transfers to business -type
activities of $380,681, the write-off of noncapitalized project costs reported as a special item of $36,406,951,
and general revenues of $147,365,128. As compared to the City's prior fiscal year outcome of $8,074,406,
this is a decrease of $3,417,271 or 43%. The most significant changes in the governmental activities in
revenues and expenses are discussed below:
The net cost of services decreased to $105,920,361 from the prior fiscal year amount of $120,899,697, a
decrease of $14,979,336 from all areas of the governmental activities, which had a positive impact on the
City's net position, primarily due to the positive and negative effects in the following areas:
• Charges for services program revenues increased to $34,205,611 from the prior fiscal year amount of
$29,383,525, an increase of $4,822,086, resulting from increases in general government of $1,277,840
and engineering and public works of $2,882,409.
Governmental expenses decreased to $168,435,128 from the prior fiscal year amount of $175,712,911,
a decrease of $7,277,783, resulting from the net effect of increases and decreases in the following
areas: a decrease of $12,121,161 in general government due to the prior fiscal year's purchase,
acquisition, and retrofit of citywide streetlights; an increase of $2,113,231 in public safety — police due
to the increase in contract services with the County of San Bernardino Sherriff's Department for the
addition of officers and operating costs passed through to the City; an increase of $3,405,814 in public
safety — fire protection due to current fiscal year depreciation related to the All -Risk Training Facility
which was capitalized during Fiscal Year 2018/19, compensated absences, OPEB, and pension costs;
and a decrease of $1,129,840 in Engineering and Public Works due to decreases in compensated
absences and pension costs as well as changes in various operational areas.
General revenues and transfers increased to $146,984,477 from the prior fiscal year amount of
$128,974,496, a decrease of $18,010,344. The net decrease is primarily due to the following areas:
Revenue from taxes increased to $120,345,011 from the prior fiscal year amount of $115,820,553, an
increase of $4,524,458. The increase in revenue from taxes is primarily due to the increases in property
taxes of $2,719,402 resulting from the County's annual inflation adjustment combined with new secured
properties being added to the tax roll and positive home buying activity; increased sales taxes of
$1,325,078 due to a healthy local economy; and increased transient occupancy taxes of $476,052 due
to a full year of operations for two of the City's hotels that opened late in the prior fiscal year, and the
opening of a new hotel in the second half of the current fiscal year.
15
• Use of money and property increased to $19,113,374 from the prior fiscal year amount of $5,781,295,
an increase of $13,332,079. The increase is due to the following: an increase of $558,985 in interest
earnings due to growth in the City's cash and investments as a result of the current fiscal year
operations combined with the net change in the unrealized gain/loss on investments from the prior year
to the current year which resulted in a positive impact of $8,274,425. The change in investment fair
value as of fiscal year-end is included in this category and reflects the temporary mark -to -market of the
City's investments. The remaining increase is due to the conveyance of land held for resale in
exchange for a note receivable pertaining to a low-income housing project in the Housing Successor
Agency Special Revenue Fund in the amount of $3,700,000. Additionally, there was an increase of
$464,811 on the current year accrued interest on the note receivables in the Housing Successor Special
Revenue Fund; however, that accrued interest is recorded as unavailable revenues on the fund
statements.
• A special item of $36,406,951 was reported in the current fiscal year for the write-off of other entities'
project costs accumulated in construction -in -progress for the Base Line Road at 1-15 Interchange
project. More information on this special item can be found in Note 16 of the notes to financial
statements.
Business -Type Activities
The following chart reflects the City's business -type activities for Fiscal Year 2018/19, showing a
comparison of revenues versus expenses by function.
Revenue and Expense By Function
Business -Type Activities
Year Ended June 30.2019
$18 000 (in Thousands)
$16,000
$14.000
$12.000 ■
$10,000
mo
$4,000
$2,000
Sports camp;ex
Munncipal Utility REGIS Conned
Fiber Optic Network
General Revenues
and Transfers
Revenues
$541
13.192 25
330
$1.377
Expenses
$2.746
9.408 19
658
$-
■ Revenues s Expenses
16
Business -Type Activities
(In Thousands)
Total Cost
Net Cost
of Services
of Services
2019
2018
2019
2018
Sports Complex
$ 2,746 $
2,852
$ (2,205) $
(2,603)
Municipal Utility
9,408
8,419
3,784
3,989
Fiber Optic Network
658
145
(328)
503
REGIS Connect
19
105
6
(62)
Total
$ 12,831 $
11,521
$ 1,257 $
1,827
The City's business -type activities' net position increased by $2,633,675, a decrease of $923,163, or 26%,
as compared to the prior fiscal year amount of $3,556,838. The most significant changes in the business -
type activities in revenues and expenses are discussed below:
• The Sports Complex Fund experienced a decrease in net position in the amount of $286,666, a
decrease of $66,181 from the prior fiscal year. While there was a decrease in net position, total income
before contributions increased by $80,177 and the interfund transfer from the General Fund decreased
by $146,358 as less supplemental funding was required for current year operations.
• The Municipal Utility Fund experienced an increase in net position in the amount of $3,177,980, a
decrease of $156,872 from the prior fiscal year, primarily due to an increase in transfers to the General
Fund by $149,120 to cover the cost of operations.
• The Fiber Optic Network Fund experienced a decrease in net position in the amount of $264,930, a
decrease of $770,373 from the prior fiscal year. This was due to an increase in operating expenses of
$310,055 and a decrease in capital contributions of $339,803.
• The REGIS Connect Fund experienced an increase in net position in the amount of $7,291, an increase
of $70,263 from the prior fiscal year. This was primarily due to operating expenses decreasing by
$85,685.
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 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 $478,117,692 represents the starting point for the reconciliation of the
balance sheet of governmental funds to the statement of net position detailed on page 35. This total
includes the General Fund balance of $118,780,845, of which $15,996,673, or 14%, is nonspendable. This
means that these amounts cannot be spent because they are not in spendable form or are legally or
contractually required to be maintained intact; $10,000,335, or 8%, are restricted fund balances which are
the result of externally enforceable limitations on use; $72,103,374, or 61%, are committed fund balances
which have resulted from self-imposed limitations placed upon the funds by the City Council; and the
assigned fund balances of $20,680,463, or 17%, are constrained by an intent for specific purposes by City
management, but are neither restricted nor committed, in accordance with the City's policy.
17
The following chart illustrates the components of the General Fund balance as of June 30, 2019.
Restricted
8 4%
Committed
603%
General Fund Balance
June 30, 2018
$118,780,845
Nanspendable Assigned
13.5% 17.4
Percent (%) of
Total Fund
General Fund Balance (In Thousands):
Total
Balance
Nonspendable $
15,997
13.5%
Restricted
10,000
8.4%
Committed
72,103
60.7%
Assigned
20,680
17.4%
Total Fund Balance $
118,780
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 and 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:
• Chanaes 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.
18
• City Facilities Capital Repair
The City's General Fund balance committed for City facilities capital repair and property acquisition is
established at a minimum goal of 50% of capital assets value comprised of construction in progress
(excluding infrastructure), building improvements, and improvements other than building for
governmental activities, excluding assets owned by the Rancho Cucamonga Fire Protection District.
• Fire District Facilities Capital Repair
The Fire District's fund balance committed for the Fire District facilities capital repair is 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 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 classified as assigned in the General
Fund's balance sheet is based upon plans established by the City Council and the City's management
during the course of developing the annual budget. These amounts are set aside each year for specific
purposes and can only be used for those specific purposes. However, recurring General Fund operations
have been fully funded without the use of reserves.
19
The balance sheet presents the General Fund, the Development Impact Fees Special Revenue Fund, the
Lighting Districts Special Revenue Fund, the Housing Successor Agency Special Revenue Fund, the Fire
District Special Revenue Fund, and other non -major governmental funds. On pages 30 through 33 the
balance sheet of the governmental funds is shown. The combined fund balance of $478,117,692, increased
by $37,288,916, or 9%, from the prior fiscal year amount of $440,828,776.
The General Fund has a fund balance of $118,780,845, which has increased by $3,698,752, or 3%, from
the prior fiscal year primarily due to the net result of revenues, expenditures, and other financing sources
and uses.
The Development Impact Fees Special Revenue Fund is being reported as a major fund as of
June 30, 2019. In the current fiscal year, separately reported non -major governmental funds that had
similar operations were consolidated into this single external fund in the current fiscal year. The fund
balance as of June 30, 2019 is $55,817,514, which has increased by $11,075,586, or 25%, from the prior
fiscal year due to increased development activity during the current fiscal year as well as the impact of
certain fee increases that took effect during the year.
The Lighting Districts Special Revenue Fund has a deficit fund balance of $5,587,105, which has improved
by $1,369,831, or 20%, from the prior fiscal year. The deficit fund balance is due to the outstanding
interfund loans from the General Fund for the prior year purchase and acquisition of streetlights and
installation of LED lighting. As the interfund loans are paid down each year from current operations, the
deficit fund balance will continue to improve.
The Housing Successor Agency Special Revenue Fund has a fund balance of $139,933,044, which has
increased by $4,032,347, or 3%, from the prior fiscal year primarily due to the conveyance of land held for
resale in exchange for a note receivable pertaining to a low-income housing project.
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 $76,043,480, which
has increased by $11,181,953, or 17%, from the prior fiscal year primarily due to the positive impact of the
mark -to -market for the District's investments at fiscal year-end, increased property tax receipts, and
decreased capital outlay activity for the All -Risk Training Facility from the prior fiscal year.
It should be noted that the total fund balance for the Fire District Special Revenue Fund of $76,043,480 is
$1,553,545 less than the total fund balance per the District's component unit financial statements of
$77,597,025. 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 26 special revenue
funds and 1 capital project fund. These funds have a combined fund balance of $93,129,914, which has
increased by $5,930,446, or 7%, from the prior fiscal year fund balance of $87,199,468, primarily due to
the following:
o The Gas Tax Special Revenue Fund has a fund balance of $10,805,472, which has increased by
$1,502,067 from the prior fiscal year fund balance of $9,303,405 as a result of increased revenues,
primarily due to new revenues resulting from SB1, which imposes an additional 12-cent per gallon
increase in the gasoline excise tax.
20
o The Landscape Maintenance Districts Special Revenue Fund has a fund balance of $19,894,912,
which has increased by $2,440,876 from the prior fiscal year fund balance of $17,454,036. This
increase is largely due to increases in special benefit assessments for some of the 10 landscape
maintenance districts that make up the special revenue fund.
o The Library Services Special Revenue Fund has a fund balance of $7,534,549, which has increased
by $818,799 from the prior fiscal year fund balance of $6,715,750 as a result of increases in property
tax and use of money and property revenues.
Proprietary Funds. The City's proprietary funds consist of four enterprise funds (three major and one non -
major funds) and two internal service funds.
The three major enterprise funds are the Sports Complex Fund, which accounts for the activities of the
Sports Complex; the Rancho Cucamonga Municipal Utility (RCMU) Fund, which accounts for the City's
electric utility operations; and the 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 remaining non -major
enterprise fund is the Rancho Cucamonga Enterprise Geographic Information Systems (REGIS) Connect
Fund, which accounts for the City's enterprise Geographic Information Systems (GIS) services.
The internal service funds are the Equipment and Vehicle Replacement Fund and the Computer
Equipment/Technology Replacement Fund. These funds are used by management to charge the costs of
certain activities, such as computer equipment replacement, to individual funds.
Net position for the enterprise funds is $52,143,112 of which $34,506,531 represents the amount invested
in capital assets and $629,390 is restricted for the purpose of public benefit through the Municipal Utility.
The unrestricted net position amounts to $17,007,191. The increase in net position for the enterprise funds
of $2,633,675 is due to the following:
• Before transfers from the General Fund in the amount of $1,770,941, the Sports Complex Fund
experienced a loss of $2,057,607. Considering the transfers from the General Fund the net decrease
in the fund's net position is $286,666 due to normal operating activities.
• The Municipal Utility Fund experienced an increase in net position of $3,177,980, a $156,872 decrease
from the prior year's activity. Operations were fairly consistent from the prior year with a slight increase
in the transfer out to the General Fund to offset general City operations.
• Before capital contributions from the City of $248,927, the Fiber Optic Network Fund experienced a
loss of $513,857. Taking the capital contributions into consideration resulted in a net decrease in the
fund's net position of $264,930, primarily due to interest expense related to the 2019 Lease Revenue
Bonds.
• REGIS Connect Fund experienced an increase in net position of $7,291, primarily due to a decrease
in operating expenses as a result of reduced activity.
Net position for the internal service funds is $10,342,163, of which $5,804,355 represents the amount
invested in capital assets. Unrestricted net position amounts to $4,537,808 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. The total net position increased for these funds by
$490,252 due to operations and transfers from the General Fund.
• Equipment and Vehicle Replacement Fund experienced a loss in the amount of $640,464 due
primarily to depreciation expense related to the planned replacement of City vehicles and
equipment.
21
Before transfers from the General Fund and Fire District Special Revenue Fund in the amount of
$2,098,360, the Computer Equipment and Technology Replacement Fund experienced a decrease
in net position in the amount of $967,644. After net transfers, the Computer Equipment and
Technology Replacement Fund experienced an increase in net position in the amount of
$1,130,716. The additional resources transferred from the City General Fund will assist with the
funding of future computer equipment and technology replacement in accordance with the City's
Information Technology Master Plan.
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 $94,570,529 were $4,628,659 more than the final
budgeted revenues of $89,941,870. The significant areas that showed variances from the budget are as
follows: (1) taxes had a positive variance of $1,081,982 primarily due to sales taxes exceeding budget by
$728,673 and post -RDA residual balance property taxes exceeding budget by $214,324; (2) use of money
and property had a positive variance of $1,741,473 due to increases in interest earnings combined with the
net change in the unrealized gain/loss on investments from the prior year to the current year; and (3)
miscellaneous revenue had a positive variance of $843,970 due to the unanticipated solar rebates from
Southern California Edison, non -abated reimbursements exceeding budget by $129,744, insurance loss
recoveries in the amount of $234,483, and retrospective insurance premium adjustments of $276,535.
The General Fund's actual ending expenditures, including encumbrances, of $93,362,623 were $6,665,912
less than the final budget of $100,028,535. The significant areas that showed positive variances from the
budget are in the following areas:
o General Government in the amount of $1,001,007 due to savings from contract services, legal
services, and electric utilities.
o Public Safety — Police in the amount of $982,909 due to savings from contract services, vehicle
operations and maintenance, and vehicle collision repair.
o Community Services Administration in the amount of $337,296 due to savings from personnel,
operations and maintenance, and contract services.
o Engineering and Public Works Park Maintenance in the amount of $496,011 due to savings from
personnel, contract services, and other operations and maintenance expenditures.
o City Facilities Maintenance in the amount of $494,897 due to savings in personnel, contract
services, and other operations and maintenance costs.
o Capital Outlay in the amount of $3,753,567 due to the deferral of $3,600,000 in funding for the
Public Safety Facility on the City's west -side until next fiscal year and less than anticipated
completion of building improvements in the amount of $113,782.
o Transfers Out in the amount of $(1,311,251) to provide unanticipated supplemental funding to the
Computer Equipment/Technology Replace Internal Service Fund for future technology needs.
22
Capital Assets and Debt Administration
Capital Assets
As stated in the Overview of the Financial Statements, the financial statement format required by GASB
Statement No. 34 reflects the capitalization and depreciation of infrastructure and other capital assets (e.g.,
buildings, vehicles, furniture and fixtures, etc.).
At the end of the fiscal year, the City had $824,303,161, net of depreciation, invested in a broad range of
capital assets. This amount represents a net decrease (including additions and deductions) of $28,964,980
from the prior fiscal year amount of $853,268,141.
The table below presents the summary information on the City's capital assets.
Capital Assets
For the Year Ended June 30, 2019
(Net of Depreciation, In Thousands)
Governmental Business -Type
Activities Activities Total
2019 2018 2019 2018 2019 2018
Land
$ 98,139
$ 92,937
$ 5,451
$ 5,451
$ 103,590
$ 98,388
Right-of-way
237,013
237,013
-
-
237,013
237,013
Construction in progress
11,407
93,939
1,696
1,544
13,103
95,483
Buildings improvements
151,797
113,745
6,025
6,456
157,822
120,201
Improvements other than buildings
25,533
27,197
2,362
2,491
27,895
29,688
Equipment and vehicles
13,380
10,027
170
107
13,550
10,134
Furniture and fixtures
363
489
-
-
363
489
Infrastructure
250,549
243,317
19,738
17,630
270,287
260,947
Intangible
680
925
-
-
680
925
Total
$ 788,861
$ 819,589
$ 35,442
$ 33,679
$ 824,303
$ 853,268
As discussed earlier, the most significant change in capital assets for governmental activities is the
decrease in construction -in -progress due to the write-off of other entities' project costs incurred for the Base
Line Road at the 1-15 Interchange Project in the amount of $36,406,951. This write-off is reported as a
special item in the financial statements. Additional information can be found in Note 16 of the notes to
financial statements. Other changes in capital assets are net increases in construction in progress for
various projects, contributions of infrastructure, and various purchases of land, equipment and vehicles.
The most significant change in capital assets for business -type activities is the increase in construction -in -
progress of $1,126,775 for the on -going construction of the City's fiber optic network. During Fiscal Year
2018/19, the City issued the 2019 Lease Revenue Bonds in the amount of $13,555,938 to expand the City's
existing fiber optic network for public and economic development purposes.
Additional information on the City's capital assets can be found in Note 5 of the notes to financial
statements.
Debt Administration
At fiscal year end, the City's governmental activities had total debt outstanding in the amount of
$16,105,071. This consists of capital leases, advances from the Successor Agency, compensated
absences, and claims and judgments payable. This is an increase of $1,134,703, or 9%, compared to the
prior fiscal year, the majority of which is attributed to the new capital lease in the amount of $2,446,503 for
the purchase of the Dell blade servers and software.
23
Additionally, the City issued the 2019 Lease Revenue Bonds in the amount of $13,555,938 during Fiscal
Year 2018/19. The purpose of this long-term debt is to finance the acquisition, construction, and equipment
of an expansion to the City's existing fiber optic network. The bonds are comprised of a Series A that was
issued for a par value of $9,875,000, with a $1,371,795 bond premium, and a Series B that was issued for
a par value of $2,320,000, with a $10,857 bond discount. There was no long-term debt in the business -
type activities previously.
The summary of outstanding long-term debt with comparative amounts for the prior fiscal year is presented
below:
Long -Term Debt
For the Year Ended June 30, 2019
(In Thousands)
Governmental Business -Type
Activities Activities Total
2019 2018 2019 2018 2019 2018
Capital Leases (Note 7) $
1,919
$ - $ - $
$ 1,919
$
Lease Revenue Bonds (Note 7)
-
- 13,556
13,556
-
Advances from Successor Agency (Note 8)
3,954
3,954 -
3,954
3,954
Compensated Absences (Note 9)
7,138
7,498
7,138
7,498
Claims and Judgments Payable (Note 14)
3,094
3,519 -
3,094
3,519
Total $
16,105
$ 14,971 $ 13,556 $
$ 29,661
$ 14,971
Additional information on the long-term debt in the table above can be found in the indicated notes in the
notes to financial statements.
Economic Factors and Next Year's Budgets
In its third quarterly report for September 2019, the UCLA Anderson Forecast's quarterly outlook for the
national economy anticipates slow growth but no recession predicted. The real Gross Domestic Product
(GDP) growth is expected to be at 2.1 % in 2019 and 1.2% in 2020. Slow growth is anticipated to reach a
near recession rate of 0.4% in the second half of 2020; but it is expected to return to 2.1 % in 2021.
California's unemployment rate according to the Employment Development Department (EDD) as of
September 2019 fell to 4.0%, a slight decrease from the prior year unemployment rate of 4.1 %. In the same
period, the U.S. unemployment rate declined to 3.5%, a decrease from the prior year unemployment rate
of 3.7%.
Locally, the following key economic indicators reflect steady and continued economic growth in the City:
Low unemployment rate. The City's unemployment rate is at 2.5% as of September 2019. That is well
below the State level of 3.5% and San Bernardino County level of 3.3%. Generally, the City's rate is
around 0.5% - 2.5% lower than the County as a whole, and it is a reflection of the City's status as a
major jobs producer. For example, employment by firms located in the City reached new peak levels
(about 78,000) and is expected to continue to grow at a rate of 1,500 to 2,000 jobs a year over the next
five to seven years. The City's strongest sectors for employment and payroll growth are manufacturing
and professional services, along with financial and Insurance sectors.
• Vacancy rates for warehousing in the greater geographical area are in the low 4.0% range, down over
2.0% from the prior year while the rental rate is 8.0% higher from the prior year. The City is one of the
cities in this region with significant employment in manufacturing.
• Modest growth is anticipated for the City's key revenue sources as indicated in the Fiscal Year 2019/20
Adopted Budget. In conjunction with this, it should be noted that property values are anticipated to
increase 4.6%.
24
• During Fiscal Year 2018/19, the City received an upgrade in its credit rating by Standard & Poor's from
AA- to AA+. This is the second -highest credit rating possible, exceeded only by AAA, which very few
cities in California actually have, and the upgrade was largely attributed to the City's overall
conservative approach to financial management and practices.
While the City's general revenue picture is strong, it faces ongoing challenges with special revenue sources
and increases in expenditures as noted below:
A continual gradual decline of gas tax revenues due to low gas prices over the past couple of years,
increased hybrid and electric vehicle sales, and processing changes at the state level coupled with
required rehabilitation of roads and upgrades to curb ramps which average about $1,000,000 per year.
Additionally, current standards and proposals by the Governor and Legislature that tie housing
production goals to eligibility to receive SB1 gasoline excise tax funds could be devastating as both the
establishment of these goals and timing for production of housing are largely outside of the control of
the City.
• Due to the ownership of the citywide streetlights, the City has realized a growing cost for knocked down
streetlights. The rate for replacement of streetlights when one is knocked down due to a traffic accident
or, in most cases, drunk or distracted driving, was largely underestimated. Additionally, the City is
unfortunately unable to collect insurance recoveries for all the knockdowns because drivers leave the
accident or do not have insurance.
• Contract costs for the County of San Bernardino Sheriff Department are approaching $40 million, which
is a 5.9% increase from the prior fiscal year. The increase is due to increases in pension cost and
liability payouts. The expected increase from ongoing labor negotiations with the Safety Employee
Benefit Association is not yet reflected in the budget.
• Continued pension cost increases between 2.0-3.0% annually, combined with minimum wage
increases, cause compression in part-time, and ultimately in full-time salary schedules.
• 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. While contributions from the General Fund to the financially distressed funds ease the immediate
burden, there still remains a need to address the long-term financial instability and the deferred and
unfunded maintenance projects.
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 2019/20, the City General Fund Budget
is $88,290,270 which represents an increase of $4,345,870, or 5%, from the prior fiscal year. The Fiscal
Year 2019/20 operating budget for the Fire District is $37,144,160 which represents an increase of
$1,324,870, or 4%, from the prior year. The Fiscal Year 2019/20 Library Budget is $5,771,450 which
represents an increase of $645,220, or 13%, from the prior year. For Fiscal Year 2019/20, there is no
planned usage of reserves for the General Fund or the Library Fund. However, Fire CFD 85-1 includes the
planned usage of reserves in the amount of $77,720 due to the adjustment of the assessments sent to the
tax roll based on parcel type.
Additional details regarding the City's operating budget and its overall Fiscal Year 2019/20 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.
25
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26
CITY OF RANCHO CUCAMONGA
STATEMENT OF NET POSITION
JUNE 30, 2019
Assets:
Cash and investments
Receivables:
Accounts, net of allowances
Taxes
Notes and loans
Accrued interest
Other loans
Grants
Internal balances
Prepaid costs
Deposits
Net OPEB asset
Net pension asset
Restricted assets:
Cash with fiscal agent
Pension rate stabilization program
Capital assets, not being depreciated
Capital assets, net of depreciation
Total Assets
Deferred Outflows of Resources:
Deferred OPEB related items
Deferred pension related items
Total Deferred Outflows
of Resources
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Unearned revenue
Deposits payable
Due to other governments
Noncurrent liabilities:
Due within one year
Long-term debt
Compensated absences
Claims and judgments
Due in more than one year
Long-term debt
Advances from Successor Agency
Compensated absences
Claims and judgments
Net pension liability
Total Liabilities
Deferred Inflows of Resources:
Deferred pension related items
Total Deferred Inflows
of Resources
Net Position:
Net investment in capital assets
Restricted for:
Community development projects
Public safety
Parks and recreation
Fire protection
Engineering and public works
Community services
Capital projects
Public benefit - Municipal Utility
Unrestricted
Total Net Position
Primary Government
Governmental Business -Type
Activities Activities Total
$ 328,445,335 $ 22,339,936 $ 350,785,271
7,695,495
7,093,152
162,028,943
1,095,247
1,553,097
789,895
2,507,493
1,178,525
32,255
21,041
3,277,756
5,150, 261
8,648,775
346,558,996
442,302,349
1,318,378,615
1,566,915
105,000
78,776
(2,507,493)
191,711
12,620,653
7,147,361
28,294,455
69,837,314
9,262,410
7,093,152
162,133,943
1,174,023
1,553,097
789,895
1,178, 525
32,255
21,041
3,469,467
17,770,914
8,648,775
353,706,357
470,596,804
1,388,215,929
681,207 - 681,207
25,307,203 798,079 26,105,282
25,988,410
8,621, 018
3,500,365
30,272
783,864
63,826
789,073
453,174
5,307,000
1,309,420
1,465, 999
3,953,624
1,831,630
1,784,224
83,184,151
113,077,640
6,306,106
798,079
1,413,641
90,593
203,312
3,626
515,790
310,000
13,245,938
2,424,148
18,207,048
285,233
26,786,489
10,034,659
3,590,958
233,584
787,490
579,616
789,073
763,174
5,307,000
1,309,420
14,711,937
3,953,624
1,831,630
1,784,224
85,608,299
131,284,688
6,591,339
6,306,106 285,233 6,591,339
786,942,172
182,969,655
1,107,725
8,328,083
43,670,889
70,359,487
7,426,766
33,270,761
90,907,741
$ 1,224,983,279
34,506,531
629,390
17, 007,191
$ 52,143,112
821,448,703
182,969,655
1,107,725
8,328,083
43,670,889
70,359,487
7,426,766
33,270,761
629,390
107,914,932
$ 1,277,126,391
See Notes to Financial Statements 27
CITY OF RANCHO CUCAMONGA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2019
Program Revenues
Operating
Capital
Charges for
Contributions
Contributions
Expenses
Services
and Grants
and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government
$ 19,670,962
$ 8,576,190
$ 28,090
$
Public safety - police
40,689,664
1,541,582
405,593
Public safety - fire protection
37,963,605
552,486
26,732
Public safety - animal center
3,307,736
215,137
-
-
Community development
17,684,128
11,281,208
1,149,393
Community services
18,442,135
3,260,244
957,375
-
Engineering and public works
30,443,979
8,778,764
8,394,546
17,347,427
Interest on long-term debt
232,919
-
-
-
Total Governmental Activities
168,435,128
34,205,611
10,961,729
17,347,427
Business -Type Activities
Sports Complex
2,746,411
540,972
-
Municipal Utility
9,407,567
12,777,773
413,750
Fiber Optic Network
658,291
81,605
248,927
REGIS Connect
19,284
25,470
-
Total Business -Type Activities
12,831,553
13,425,820 -
662,677
Total Primary Government
$ 181,266,681
$ 47,631,431 $ 10,961,729
$ 18,010,104
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
Gain on sale of capital asset
Special Item (Note 16)
Transfers
Total General Revenues, Special Item and Transfers
Change in Net Position
Net Position at Beginning of Year
Net Position at End of Year
See Notes to Financial Statements 28
Net (Expenses) Revenues and Changes in Net Position
Primary Government
Governmental Business -Type
Activities Activities Total
$ (11,066,682)
(38,742,489)
(37,384,387)
(3,092,599)
(5,253,527)
(14,224,516)
4,076,758
(232,919)
(105,920,361)
$ (11,066,682)
(38,742,489)
(37,384,387)
(3,092,599)
(5,253,527)
(14,224,516)
4,076,758
(232,919)
(105,920,361)
-
(2,205,439)
(2,205,439)
-
3,783,956
3,783,956
-
(327,759)
(327,759)
-
6,186
6,186
-
1,256,944
1,256,944
(105,920,361)
1,256,944
(104,663,417)
75,479,699
-
75,479,699
7,493
146,181
153,674
4,054,058
-
4,054,058
32,803,372
-
32,803,372
8,000,389
-
8,000,389
84,803
-
84,803
19,113,374
849,869
19,963,243
7,764,377
-
7,764,377
57,563
-
57,563
(36,406,951)
-
(36,406,951)
(380,681)
380,681
-
110, 577, 496
1,376,731
111, 954, 227
4,657,135
2,633,675
7,290,810
1,220,326,144
49,509,437
1,269,835,581
$ 1,224,983,279
$ 52,143,112
$ 1,277,126,391
See Notes to Financial Statements 29
CITY OF RANCHO CUCAMONGA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2019
Assets:
Cash and investments
Receivables:
Accounts, net of allowances
Taxes
Notes
Accrued interest
Other loans
Grants
Prepaid costs
Deposits
Due from other funds
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Pension rate stabilization program
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Revenue Funds
Housing
Development
Lighting
Successor
General
Impact Fees
Districts
Agency
$ 94,075,823
$ 55,360,765
$ 6,665,348
$ 2,254,691
2,547,754
358,693
201,105
339,437
5,930,843
-
20,386
-
-
-
-
162,028,943
289,886
184,802
19,731
27,626
9,911
-
-
-
268,441
-
-
-
20,000
-
-
-
1,416,536
12,874
-
3,308
15,698,321
-
-
-
-
-
-
4,444,488
2,269,627
-
-
-
$ 122,527,142
$ 55,917,134
$ 6,906,570
$ 169,098,493
$ 1,886,872 $ 79,352 $ 114,697 $ -
1,816,466 20,268 6,430 -
- - 19,005 -
42,959 - - -
- - 12,173,792 -
3,746,297 99,620 12,313,924 -
- 179,751 29,165,449
179,751 29,165,449
See Notes to Financial Statements 30
CITY OF RANCHO CUCAMONGA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2019 (CONTINUED)
Assets:
Cash and investments
Receivables:
Accounts, net of allowances
Taxes
Notes
Accrued interest
Other loans
Grants
Prepaid costs
Deposits
Due from other funds
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Pension rate stabilization program
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Special
Other Total
Governmental Governmental
Fire District Funds Funds
$ 71,093,904 $ 94,736,629 $ 324,187,160
1,180,028
3,039,458
7,666,475
146,362
995,561
7,093,152
-
-
162,028,943
240,575
322,018
1,084,638
-
1,543,186
1,553,097
-
789,895
789,895
220,497
41,216
530,154
-
12,255
32,255
-
21,208
1,453,926
-
-
15,698,321
-
705,773
5,150,261
6,379,148
-
8,648,775
$ 79,260,514 $ 102,207,199 $ 535,917,052
$ 422,753
$ 5,739,249
$ 8,242,923
1,162,632
494,569
3,500,365
-
764,859
783,864
-
20,867
63,826
-
789,073
789,073
78,104
839,313
917,417
1,553,545
-
13,727,337
3,217,034
8,647,930
28,024,805
-
429,355
29,774,555
-
429,355
29,774,555
See Notes to Financial Statements 31
CITY OF RANCHO CUCAMONGA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2019
Special Revenue Funds
Housing
Development
Lighting Successor
General
Impact Fees
Districts Agency
Fund Balances:
Nonspendable:
Prepaid costs
268,441
-
- -
Deposits
20,000
-
- -
Other loans
9,911
-
- -
Advances to other funds
15,698,321
-
- -
Restricted:
Community development projects
-
8,364,899
- 139,933,044
Public safety - police
-
513,407
- -
Parks and recreation
-
5,625,640
- -
Engineering and public works
-
39,641,853
- -
Capital improvement projects
1,649,423
856,544
- -
Underground utilities
-
-
- -
Landscape maintenance
-
-
- -
Library services
-
683,321
- -
Technology replacement
1,494,721
-
- -
General plan update
2,893,232
131,850
- -
Contractual obligations
798,673
-
- -
PERS rate stabilization
3,069,627
-
- -
SB1186 certified access specialist services
94,659
-
- -
Committed:
Law enforcement
9,293,760
-
- -
Vehicle and equipment replacement
-
-
- -
Working capital
4,414,510
-
- -
City facilities capital repair
29,351,840
-
- -
Changes in economic circumstances
18,006,176
-
- -
Employee leave payouts
3,447,141
-
- -
Self insurance
7,589,947
-
- -
Fire District facilities capital repair
-
-
- -
PASIS worker's compensation tail claims
-
-
- -
Assigned:
Radio system acquisition
550,697
-
- -
City infrastructure
13,012,707
-
- -
Capital projects
-
-
- -
Sphere of influence issues
677,404
-
- -
Animal Center operations
450,354
-
- -
Community development projects
1,772,392
-
- -
Mobile home park program
173,479
-
- -
Fiber master plan
4,000,680
-
- -
Continuing operations
42,750
-
- -
Unassigned
-
-
(5,587,105) -
Total Fund Balances
118,780,845
55,817,514
(5,587,105) 139,933,044
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 122,527,142
$ 55,917,134
$ 6,906,570 $ 169,098,493
See Notes to Financial Statements 32
CITY OF RANCHO CUCAMONGA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2019 (CONTINUED)
Fund Balances:
Nonspendable:
Prepaid costs
Deposits
Other loans
Advances to other funds
Restricted:
Community development projects
Public safety - police
Parks and recreation
Engineering and public works
Capital improvement projects
Underground utilities
Landscape maintenance
Library services
Technology replacement
General plan update
Contractual obligations
PERS rate stabilization
SB1186 certified access specialist services
Committed:
Law enforcement
Vehicle and equipment replacement
Working capital
City facilities capital repair
Changes in economic circumstances
Employee leave payouts
Self insurance
Fire District facilities capital repair
PASIS worker's compensation tail claims
Assigned:
Radio system acquisition
City infrastructure
Capital projects
Sphere of influence issues
Animal Center operations
Community development projects
Mobile home park program
Fiber master plan
Continuing operations
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Special
o...,.,....- C..-A
Other
Total
Governmental
Governmental
Fire District
Funds
Funds
220,497
41,216
530,154
-
12,255
32,255
-
-
9,911
-
-
15,698,321
-
2,573,192
150,871,135
-
724,038
1,237,445
-
2,702,443
8,328,083
-
20,771,404
60,413,257
2,449,106
28,315,687
33,270,760
-
10,962,197
10,962,197
-
19,894,912
19,894,912
-
7,132,666
7,815,987
24,710
-
1,519,431
-
-
3,025,082
37,864
-
836,537
8,879,148
-
11,948,775
-
-
94,659
9,293,760
3,537,872
- 3,537,872
17,588,765
- 22,003,275
-
- 29,351,840
9,128,022
- 27,134,198
3,691,489
- 7,138,630
-
- 7,589,947
7,132,612
- 7,132,612
554,946
- 554,946
2,005,044 - 2,555,741
- - 13,012,707
20,790,282 - 20,790,282
- - 677,404
- - 450,354
- - 1,772,392
- - 173,479
- - 4,000,680
3,123 - 45,873
- (96) (5,587,201)
76,043,480 93,129,914 478,117,692
$ 79,260,514 $ 102,207,199 $ 535,917,052
See Notes to Financial Statements 33
THIS PAGE INTENTIONALLY LEFT BLANK
34
CITY OF RANCHO CUCAMONGA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2019
Fund balances of governmental funds $ 478,117,692
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. 781,137,817
Deferred outflows related to pension related items are not included in the governmental
fund activity:
Contributions made after the measurement date
$ 9,854,105
Adjustment due to differences in proportions
1,246,928
Changes in assumptions
10,995,571
Differences between expected and actual experiences
2,469,486
Differences between actual contributions and the proportionate share of contributions
8,858
Net difference between projected and actual earning on plan investments
732,255 25,307,203
Deferred inflows related to pension related items are not included in the governmental
fund activity:
Changes in assumptions
(2,407,333)
Differences between expected and actual experiences
(3,321,093)
Adjustment due to differences in proportions
(16,700)
Differences between actual contributions and the proportionate share of contributions
(560,980) (6,306,106)
Deferred outflows related to OPEB related items are not included in the governmental
fund activity:
Contributions made after the measurement date 469,195
Net difference between projected and actual earning on OPEB plan investments 212,012 681,207
Advances from Successor Agency, compensated absences and claims and judgments
liability are not included in the governmental fund activity:
Advances from Successor Agency (3,953,624)
Claims and judgments (3,093,644)
Compensated absences (7,138,630) (14,185,898)
Governmental funds report all pension contributions as expenditures, however, in the
statement of net position, the excess of the total pension liability over the plan fiduciary
net position is reported as a net pension liability. (83,184,151)
Net pension assets are not available to pay for current -period expenditures
and therefore are not reported in the govenmental funds. 3,277,756
Net OPEB assets are not available to pay for current -period expenditures
and therefore are not reported in the govenmental funds. 21,041
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. 29,774,555
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. 10,342,163
Net Position of Governmental Activities $ 1,224,983,279
See Notes to Financial Statements 35
CITY OF RANCHO CUCAMONGA
STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2019
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety - police
Public safety - fire protection
Public safety - animal center
Community development
Community services
Engineering and public works
Capital outlay
Debt service:
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of capital assets
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances:
Beginning of year
End of Year
General
Special Revenue Funds
Housing
Development Lighting Successor
Impact Fees Districts Agency
$ 72,418,242
$ -
$ 2,092,944 $ -
4,681,116
-
- -
595,600
332,553
- -
5,272,230
380,872
- -
3,444,783
1,723,545
197,954 4,067,934
1,669,472
-
- -
124,459
-
- -
-
13,274,348
96 -
4,493,260
14,277
722,109 340,438
92,699,162
15,725,595
3,013,103 4,408,372
15,345,248 - 1,745,656 -
39,703,690 - - -
3,230,781 - - -
5,859,067 130,327 - 376,025
4,739,454 - - -
11,721,961 1,062,288 - -
5,747,055 3,457,393 21,219 -
- - 124,817 -
86,347,256 4,650,008 1,891,692 376,025
6,351,906 11,075,587 1,121,411 4,032,347
1,811,950 - 373,420 -
(4,524,521) - (125,000) -
59,417 - - -
(2,653,154) - 248,420
3,698,752 11,075,587 1,369,831
4,032,347
115,082,093 44,741,927 (6,956,936) 135,900,697
$ 118,780,845 $ 55,817,514 $ (5,587,105) $ 139,933,044
See Notes to Financial Statements 36
CITY OF RANCHO CUCAMONGA
STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2019
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety - police
Public safety - fire protection
Public safety - animal center
Community development
Community services
Engineering and public works
Capital outlay
Debt service:
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of capital assets
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances:
Beginning of year
End of Year
Special
Other Total
Governmental Governmental
Fire District Funds Funds
$ 42,000,893
$ 16,865,454
$ 133,377,533
16,141
243,866
4,941,123
10,000
15,052,737
15,990,890
2,066
3,298,541
8,953,709
2,374,649
4,501,955
16,310,820
158,624
-
1,828,096
-
389,734
514,193
-
199,255
13,473,699
1,599,482
1,501,523
8,671,089
46,161,855
42,053,065
204,061,152
-
921,376
18,012,280
-
302,684
40,006,374
32,206,395
57,851
32,264,246
-
-
3,230,781
-
11,157,260
17,522,679
-
9,129,952
13,869,406
-
7,688,665
20,472,914
2,541,598
7,005,341
18,772,606
77,830
-
202,647
34,825,823
36,263,129
164,353,933
11,336,032
5,789,936
39,707,219
3,230
615,878
2,804,478
(158,630)
(475,368)
(5,283,519)
1,321
-
60,738
(154,079)
140,510
(2,418,303)
11,181,953
5,930,446
37,288,916
64,861,527
87,199,468
440,828,776
$ 76,043,480
$ 93,129,914
$ 478,117,692
See Notes to Financial Statements 37
THIS PAGE INTENTIONALLY LEFT BLANK
38
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, 2019
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets are allocated over their estimated useful lives
as depreciation expense.
Capital outlay
Depreciation
Contributed capital assets
Special item (Note 16)
Loss on disposal of capital assets
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.
Change in claims and judgments payable
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.
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.
Pension obligation expenses are expenditures in the governmental funds,
but reduce the Net Pension Liability in the statement of net position.
Revenues reported as unavailable revenue in the governmental funds are recognized
in the statement of activities. These are included in the intergovernmental revenues
in the governmental fund activity.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management, to individual funds. The assets and
liabilities of the internal service funds are added to the statement of net position.
Change in Net Position of Governmental Activities
$ 18,772,606
(18,065,639)
3,946,787
(36,406,951)
(777,927)
37,288,916
(32,531,124)
425,229
359,241
(60,921)
(3,839,798)
2,525,340
490,252
$ 4,657,135
See Notes to Financial Statements 39
CITY OF RANCHO CUCAMONGA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2019
Business -Type Activities - Enterprise Funds
Other
Enterprise
Major Funds
Funds
Sports
Municipal
Fiber Optic
REGIS
Complex
Utility
Network
Connect
Assets:
Current:
Cash and investments
$
73,385
$ 22,266,551
$ -
$
Receivables:
Accounts
56,582
1,488,324
10,489
11,520
Notes and loans
-
105,000
-
-
Accrued interest
78,776
Prepaid costs
-
Due from other funds
-
9,151
Net pension asset
122,835
68,876
-
Restricted:
Cash with fiscal agent
-
-
12,620,653
-
Total Current Assets
252,802
24,016,678
12,631,142
11,520
Noncurrent:
Capital assets - net of
accumulated depreciation
13,837,595
14,887,273
6,716,948
-
Total Noncurrent Assets
13,837,595
14,887,273
6,716,948
-
Total Assets
14,090,397
38,903,951
19,348,090
11,520
Deferred Outflows of Resources:
Deferred pension related items
556,807
241,272
-
-
Total Deferred Outflows of Resources
556,807
241,272
-
-
Total Assets and Deferred Outflows of
Resources
$
14,647,204
$ 39,145,223
$ 19,348,090
$ 11,520
Liabilities, Deferred Inflows of
Resources and Net Position:
Liabilities:
Current:
Accounts payable
$
65,616
$ 1,100,278
$ 247,747
$
Accrued liabilities
64,290
26,303
-
-
Accrued interest
-
-
203,312
-
Unearned revenues
3,626
-
-
-
Deposits payable
-
515,790
-
-
Due to other funds
-
516,206
29,454
Capital leases
-
-
Revenue bonds
-
-
310,000
-
Total Current Liabilities
133,532
1,642,371
1,277,265
29,454
Noncurrent:
Advances from other funds
1,970,984
-
-
-
Capital leases
-
-
-
Revenue bonds
-
-
13,245,938
Net pension liability
1,726,240
697,908
-
-
Total Noncurrent Liabilities
3,697,224
697,908
13,245,938
-
Total Liabilities
3,830,756
2,340,279
14,523,203
29,454
Deferred Inflows of Resources:
Deferred pension related items
193,840
91,393
-
-
Total Deferred Inflows of Resources
193,840
91,393
-
Net Position:
Net investment in capital assets
13,837,595
14,887,273
5,781,663
Restricted for public benefit - Municipal Utility
-
629,390
-
-
Unrestricted
(3,214,987)
21,196,888
(956,776)
(17,934)
Total Net Position
10,622,608
36,713,551
4,824,887
(17,934)
Total Liabilities, Deferred Inflows of
Resources and Net Position
$
14,647,204
$ 39,145,223
$ 19,348,090
$ 11,520
See Notes to Financial Statements 40
CITY OF RANCHO CUCAMONGA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2019
Assets:
Current:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Prepaid costs
Due from other funds
Net pension asset
Restricted:
Cash with fiscal agent
Total Current Assets
Noncurrent:
Capital assets - net of
accumulated depreciation
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:
Deferred pension related items
Total Deferred Outflows of Resources
Total Assets and Deferred Outflows of
Resources
Liabilities, Deferred Inflows of
Resources and Net Position:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Accrued interest
Unearned revenues
Deposits payable
Due to other funds
Capital leases
Revenue bonds
Total Current Liabilities
Noncurrent:
Advances from other funds
Capital leases
Revenue bonds
Net pension liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:
Deferred pension related items
Total Deferred Inflows of Resources
Net Position:
Net investment in capital assets
Restricted for public benefit - Municipal Utility
Unrestricted
Total Net Position
Total Liabilities, Deferred Inflows of
Resources and Net Position
Governmental
Activities -
Internal
Total Service Funds
$ 22,339,936 $ 4,258,175
1,566,915 29,020
105,000 -
78,776 10,609
- 648,371
9,151 -
191,711
12,620,653 -
36,912,142 4,946,175
35,441,816
7,723,528
35,441,816
7,723,528
72, 353,958
12,669,703
798,079
798,079
$ 73,152,037 $ 12,669,703
$ 1,413,641 $
378,095
90,593
-
203,312
30,272
3,626
-
515, 790
545,660
-
-
453,174
310,000
3,082,622
861,541
1,970,984
-
-
1,465,999
13,245,938
-
2,424,148
-
17,641,070
1,465,999
20,723,692
2,327,540
285,233
-
285,233
-
34,506,531
5,804,355
629,390
-
17,007,191
4,537,808
52,143,112
10,342,163
$ 73,152,037 $ 12,669,703
See Notes to Financial Statements 41
CITY OF RANCHO CUCAMONGA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Business -Type Activities - Enterprise Funds
Other
Enterprise
Major Funds
Funds
Sports
Municipal
Fiber Optic
REGIS
Complex
Utility
Network
Connect
Operating Revenues:
Sales and service charges
$ 175,582
$ 12,776,007
$ 76,655
$ 25,470
Interdepartmental charges
-
-
-
-
Rent
286,715
-
-
-
Miscellaneous
78,675
1,766
4,950
-
Total Operating Revenues
540,972
12,777,773
81,605
25,470
Operating Expenses:
Salaries and benefits
1,448,845
595,180
-
-
Maintenance and operations
452,219
6,657,693
24,782
19,284
Contractual services
264,815
1,175,612
272,439
-
Depreciation expense
560,032
979,082
157,758
-
Total Operating Expenses
2,725,911
9,407,567
454,979
19,284
Operating Income (Loss)
(2,184,939)
3,370,206
(373,374)
6,186
Nonoperating Revenues (Expenses):
Admissions tax
146,181
-
-
-
Interest revenue
1,651
784,284
62,829
1,105
Interest expense
(20,500)
-
(203,312)
-
Total Nonoperating
Revenues (Expenses)
127,332
784,284
(140,483)
1,105
Income (Loss) Before Contributions
and Transfers
(2,057,607)
4,154,490
(513,857)
7,291
Capital contributions
-
413,750
248,927
-
Transfers in
1,770,941
-
-
-
Transfers out
-
(1,390,260)
-
-
Changes in Net Position
(286,666)
3,177,980
(264,930)
7,291
Net Position:
Beginning of Year
10,909,274
33,535,571
5,089,817
(25,225)
End of Fiscal Year
$ 10,622,608
$ 36,713,551
$ 4,824,887
$ (17,934)
See Notes to Financial Statements 42
CITY OF RANCHO CUCAMONGA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Governmental
Activities -
Internal
Total Service Funds
Operating Revenues:
Sales and service charges $ 13,053,714 $ -
Interdepartmental charges - 721,550
Rent 286,715 -
Miscellaneous 85,391 93,772
Total Operating Revenues
Operating Expenses:
Salaries and benefits
Maintenance and operations
Contractual services
Depreciation expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Admissions tax
Interest revenue
Interest expense
Total Nonoperating
Revenues(Expenses)
Income (Loss) Before Contributions
and Transfers
Capital contributions
Transfers in
Transfers out
Changes in Net Position
Net Position:
Beginning of Year
End of Fiscal Year
13,425,820 815,322
2,044,025
-
7,153,978
647,428
1,712,866
397,569
1,696,872
1,450,913
12,607,741
2,495,910
818,079
(1,680,588)
146,181 -
849,869 102,752
(223,812) (30,272)
772,238 72,480
1,590,317 (1,608,108)
662,677 -
1,770,941 2,098,360
(1,390,260) -
2,633,675 490,252
49,509,437 9,851,911
$ 52,143,112 $ 10,342,163
See Notes to Financial Statements 43
CITY OF RANCHO CUCAMONGA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Business -Type Activities - Enterprise Funds
Other
Enterprise
Major Funds
Funds
Sports
Municipal
Fiber Optic
REGIS
Complex
Utility
Network
Connect
Cash Flows from Operating Activities:
Cash received from customers and users
$ 341,869
$ 13,081,590
$ 66,166
$ 18,621
Cash received from interfund service provided
-
-
-
-
Cash paid to suppliers for goods and services
(700,022)
(7,581,017)
(113,593)
(19,726)
Cash paid to employees for services
(1,448,608)
(593,490)
-
-
Cash received from others
78,675
1,766
4,950
-
Net Cash Provided (Used) by
Operating Activities
(1,728,086)
4,908,849
(42,477)
(1,105)
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in
1,770,941
-
-
-
Cash transfers out
-
(1,390,260)
-
-
Cash received from other funds
-
(9,151)
171,354
-
Admissions tax received
146,181
-
-
-
Net Cash Provided (Used) by
Non -Capital Financing Activities
1,917,122
(1,399,411)
171,354 -
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
-
(1,669,881)
(1,126,991) -
Proceed from lease revenue bonds
-
-
13,555,938 -
Principal paid on capital debt
-
-
- -
Interest paid on interfund financing
(20,500)
-
- -
Advance from other funds
(197,672)
-
-
Net Cash Provided (Used) by
Capital and Related Financing Activities
(218,172)
(1,669,881)
12,428,947 -
Cash Flows from Investing Activities:
Interest received
1,651
767,211
62,829 1,105
Net Cash Provided (Used) by
Investing Activities
1,651
767,211
62,829 1,105
Net Increase (Decrease) in Cash
and Cash Equivalents
(27,485)
2,606,768
12,620,653 -
Cash and Cash Equivalents at Beginning of Year
100,870
19,659,783
- -
Cash and Cash Equivalents at End of Year
$ 73,385
$ 22,266,551
$ 12,620,653 $ -
See Notes to Financial Statements 44
CITY OF RANCHO CUCAMONGA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in deferred outflows from pensions
(Increase) decrease in notes and loans receivable
(Increase) decrease in prepaid expense
(Increase) decrease in net pension asset
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in unearned revenues
Increase (decrease) in deposits payable
Increase (decrease) in due to other funds
Increase (decrease) in net pension liability
Increase (decrease) in deferred inflows from pensions
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non -Cash Investing, Capital, and Financing Activities:
Donated infrastructure
Capital leases
Acquisition of capital assets in accounts payable
Business-TVDe Activities - Enterprise Funds
Other
Enterprise
Major Funds Funds
Sports Municipal Fiber Optic REGIS
Complex Utility Network Connect
$ (2,184,939) $ 3,370,206 $ (373,374) $ 6,186
560,032
979,082
157,758 -
(5,428)
6,591
(10,489) (6,849)
110,800
38,084
-
232,480
- -
-
7,219
- -
(107,848)
(60,392)
- -
12,107
242,795
183,628 -
4,905
2,274
- -
(115,000)
-
- -
-
66,512
- -
-
-
- (442)
(30,746)
(1,002)
- -
28,031
25,000
- -
456,853
1,538,643
330,897 (7,291)
$ (1,728,086) $ 4,908,849 $ (42,477) $ (1,105)
$ - $ 413,750 $ 248,927 $ -
See Notes to Financial Statements 45
CITY OF RANCHO CUCAMONGA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Cash Flows from Operating Activities:
Cash received from customers and users
Cash received from interfund service provided
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash received from others
Net Cash Provided (Used) by
Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in
Cash transfers out
Cash received from other funds
Admissions tax received
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Proceed from lease revenue bonds
Principal paid on capital debt
Interest paid on interfund financing
Advance from other funds
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Governmental
Activities -
Internal
Total Service Funds
$ 13,508,246 $ -
- 721,650
(8,414,358) (873,289)
(2,042,098) -
85,391 93,772
3,137,181 (57,867)
1,770,941 2,098,360
(1,390,260) -
162,203 -
146,181 -
689,065 2,098,360
(2,796,872) (641,902)
13,555,938
- (527,330)
(20,500) -
(197,672) -
10,540,894 (1,169,232)
832,796 104,400
832,796 104,400
15,199,936 975,661
19,760,653 3,282,514
$ 34,960,589 $ 4,258,175
See Notes to Financial Statements 46
CITY OF RANCHO CUCAMONGA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in deferred outflows from pensions
(Increase) decrease in notes and loans receivable
(Increase) decrease in prepaid expense
(Increase) decrease in net pension asset
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in unearned revenues
Increase (decrease) in deposits payable
Increase (decrease) in due to other funds
Increase (decrease) in net pension liability
Increase (decrease) in deferred inflows from pensions
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non -Cash Investing, Capital, and Financing Activities:
Donated infrastructure
Capital leases
Acquisition of capital assets in accounts payable
Governmental
Activities -
Internal
Tntal SarvirP Fimck
$ 818,079 $ (1,680,588)
1,696,872
1,450,913
(16,175)
100
148,884
-
232,480
-
7,219
140,685
(168,240)
-
438,530
31,023
7,179
-
(115,000)
-
66,512
-
(442)
-
(31,748)
-
53,031
-
2,319,102
1,622,721
$ 3,137,181 $ (57,867)
$ 662,677 $ -
- 2,446,503
165,975
See Notes to Financial Statements 47
CITY OF RANCHO CUCAMONGA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2019
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Developer loans
Prepaid bond insurance
Advances to City
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Deferred Outflows of Resources:
Deferred charge on refunding
Total Deferred Outflows of Resources
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Deposits payable
Payable to trustee
Due to external parties/other agencies
Long-term liabilities:
Due in one year
Due in more than one year
Total Liabilities
Deferred Inflows of Resources:
Deferred charges on refunding
Total Deferred Inflows or Resources
Net Position:
Held in trust for other purposes
Total Net Position
Private -
Purpose Trust
Fund
Successor
Agency Agency of the
$ 23,359,535
$ 22,127,391
229,993
-
50,463
33,004
-
-
10,827,671
-
1,476,095
-
3,953,624
4,050,810
8,580
$ 27,723,805
38,393,361
$ 161,838
33,224
8,660,253
18,830,706
37,784
$ 27,723,805
2,405,978
4,583,935
12,529,030
298,891,286
1,793,187
1,793,187
(259,885,134)
$ (259,885,134)
See Notes to Financial Statements 48
CITY OF RANCHO CUCAMONGA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2019
Additions:
Taxes
Interest and change in fair value of investments
Other revenue
Total Additions
Deductions:
Contractual services
Interest expense
Contributions to City
Total Deductions
Changes in Net Position
Net Position:
Beginning of year
Net Position - End of the Year
Private -
Purpose Trust
Fund
Successor
Agency of the
Former RDA
$ 26,431,518
53,654
141,527
26,626,699
1,085,007
12,429,234
848,640
14,362,881
12,263,818
(272,148,952)
$ (259,885,134)
See Notes to Financial Statements 49
THIS PAGE INTENTIONALLY LEFT BLANK
50
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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.
51
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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.
52
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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 and grant revenue where the government considers revenue to be
available if collected within 180 of the end of the current fiscal period. 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 Development Impact Fees Fund accounts for the receipts from development
impact fees which are used to defray all or a portion of the cost of public facilities as a
result of development.
• 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.
53
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
The City reports the following major proprietary funds:
• The Sports Complex Fund accounts for personnel and operating costs directly
associated with the operation of the City's baseball facility, which is the home of the
Rancho Cucamonga Quakes.
• The Municipal Utility Fund accounts for the costs of labor and materials used in the
operation, maintenance, construction and consumption of electric services to certain
residential, commercial, and industrial customers within the City.
• The Fiber Optic Fund accounts receipts from user charges and costs associated with
the City's existing utility, information technology and traffic fiber conduits and leases
for conduit and fiber access.
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. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
54
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Proprietary funds distinguish operating revenues and expenses from non -operating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund's principal ongoing operations.
The principal operating revenues of the enterprise funds and internal service funds are
charges to customers for sales and services. Operating expenses for enterprise funds and
internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as non -operating revenues and expenses.
d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity
Cash and Investments
All cash and investments, except those that are held by fiscal agents 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.
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.
55
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Capital Assets
Capital assets, which include land, building improvements, improvements other
than buildings, computer equipment and software, 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
Intangible assets
10-15
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:
56
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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 not collected within 60 days of the end of the current fiscal
period or 180 days for sales tax and grant 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 are 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 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 periods. The recognition period differs
depending on the source of the change, and they currently are amortized over 5 years
or the average remaining service life time.
Pension
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, 2017
Measurement Date June 30, 2018
Measurement Period July 1, 2017 to June 30, 2018
PARS Retirement Enhancement Plan
For purposes of measuring the net pension liability, net pension asset, deferred
outflows of resources and deferred inflows of resources related to the retirement
enhancement plan, and retirement enhancement plan expense, information about the
fiduciary net position of the plan and additions to/deductions from the plan's fiduciary
net position have been determined on the same basis as they are reported by the
California Defined Benefit Pension Plan Program of the Public Agency Retirement
System Trust.
Contributions are recognized in the period in which the contributions are due and there
exists a formal commitment to provide the contributions. Liabilities related to
investment and administrative expenses are recognized when incurred. Those related
to obligations for employee benefits and refunds are recognized when due and payable
in accordance with the terms of the plan.
57
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
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, 2018
Measurement Date June 30, 2018
Measurement Period July 1, 2017 to June 30, 2018
Other Post -Employment 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 the
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
Measurement Date
Measurement Period
Accrued Employee Benefits
June 30, 2017
June 30, 2018
July 1, 2017 to June 30, 2018
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.
58
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
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:
Employee
Type
Accumulated Sick
Leave Balance Vacation
Prior Calendar Year Conversion Rate
shift
108 - 144 hours
one-half
shift
72 - 108 hours
one-fourth
40-hour
90 - 120 hours
one-half
40-hour
60 - 90 hours
one-fourth
Upon service retirement of a public safety employee, the option exists to sell back up
to one-half of total accumulated sick leave or have the leave 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)
59
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
The General Fund is the only fund that can report a positive unassigned fund balance
amount. In governmental funds other than the General Fund, if expenditures incurred
for specific purposes exceed the amounts that are restricted, committed or assigned
to these purposes, it may be necessary to report a negative unassigned fund balance
in that fund.
The City Council, as the City's highest level of decision -making authority, may commit
fund balance for specific purposes pursuant to constraints imposed by the adoption of
a resolution. These committed amounts cannot be used for any other purpose unless
the City Council removes or changes the specified use through the same type of formal
action taken to establish the commitment. City Council action to commit fund balance
needs to occur within the fiscal reporting period; however, the amount can be
determined subsequently. Fund balance commitments are as follows:
Chanaes in Economic Circumstances
The City's General Fund balance committed for changes in economic
circumstances is established at a goal of a nine month reserve, or 75% of the City
General Fund operating budget for the upcoming fiscal year. The Fire District's
fund balance committed for changes in economic circumstances is established at
a goal of a nine month reserve, or 75% of the Fire District's operating budget for
the upcoming fiscal year. The specific uses of this commitment include:
1) the declaration of a state or federal state of emergency or a local emergency as
defined in Rancho Cucamonga Municipal Code Section 2.36.020; or 2) a change
in economic circumstances in a given fiscal year that results in revenues to the
City/Fire District being insufficient to cover expenditures for one or more fiscal
years. The City Council/Fire Board may, by the affirming vote of four members,
change the amount of this commitment and/or the specific uses of these monies.
City Facilities Capital Repair
The City's General Fund balance committed for City facilities capital repair and
property acquisition is established at a minimum goal of 50% of capital assets
value comprised of construction in progress (excluding infrastructure), building
improvements, and improvements other than buildings for governmental activities.
Fire District Facilities Capital Repair
The Fire District's fund balance committed for Fire District facilities capital repair
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.
Workinq Capital
The City's General Fund balance committed for Working Capital is established at
a minimum goal 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 minimum goal of 50% of the District's operating budget
for the upcoming fiscal year.
.(
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Self -Insurance
The City's General Fund balance and the Fire District's fund balance committed
for payment of Worker's Compensation, General Liability, and Employment
Practices Liability claims is established at a minimum goal of eight times the City's
and the District's total yearly SIRs for all types of insurance coverage.
PASIS Worker's Compensation Tail Claims
The Fire District's fund balance committed for payment of outstanding Worker's
Compensation claims remaining after the District's withdrawal from PASIS is
established at a goal equal to the most recent fiscal year end Claims Cost Detail
Report from the District's third -party administrator plus 15%.
Employee Leave Payouts
The City's General Fund balance and the Fire District's fund balance committed
for employee leave payouts is 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.
61
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
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 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 does not meet the
definition of "net investment in capital assets" or "restricted net position."
Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both
restricted (e.g., restricted bond or grant proceeds) and unrestricted resources.
In order to calculate the amounts to report as restricted — net position and
unrestricted — net position in the government -wide and proprietary fund financial
statements, a flow assumption must be made about the order in which the resources
are considered to be applied. It is the government's policy to consider restricted — net
position to have been depleted before unrestricted — net position is applied.
Property Tax
Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal
year for which the taxes have been levied providing they become available. Available
means then due or past due and receivable within the current period and collected
within the current period or expected to be collected soon enough thereafter to be used
to pay liabilities of the current period. The County of San Bernardino collects property
taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day 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.
62
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
• 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.
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, 2019:
General Fund
$ 2,490,846
Development Impact Fees
809,518
Lighting Districts
251,238
Fire District
2,490,093
Other Governmental Funds
7,201,002
b. Deficit Fund Balances or Net Position
The Lighting Districts Fund has a deficit fund balance of $5,587,105 at June 30, 2019. The
deficit fund balance will be eliminated by the repayment of the interfund advance from the
General Fund described in Note 6.
The Energy Efficient & Conservation Block Grant nonmajor special revenue fund has a
fund balance deficit of $96. This deficit will be eliminated with a final accounting and close-
out of the fund.
63
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
As of June 30, 2019, cash and investments were reported in the accompanying financial
statements as follows:
Governmental activities $ 342,244,371
Business -type activities 34,960,589
Fiduciary funds 49,546,316
Total Cash and Investments $ 426,751,276
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, 2019, the carrying amount of the City's deposits was $34,374,515 and the bank
balance was $36,004,009. The $1,629,494 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
64
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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
As of June 30, 2019, The City's investments in municipal bonds and corporate notes were
rated "Aa" by Moody's. As of June 30, 2019, the City invested in Federal Farm Credit Bank,
Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and Federal
National Mortgage Association which were all rated "Aaa" by Moody's. All securities were
investment grade and were legal under State and City law. As of June 30, 2019, 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, 2019, the City's deposits (bank balances) were insured by the FDIC up
to $250,000 and the remaining balances were collateralized under California Law.
65
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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, 2019, 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 14.08%
Federal Home Loan Bank 13.10%
Federal Home Loan Mortgage Corp. 12.79%
Federal National Mortgage Association 11.91 %
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, 2019, the City had the following investments and original maturities:
Investments:
Local Agency Investment Fund
Federal Governmental Agencies
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Mortgage Corp.
Federal National Mortgage Assoc.
Municipal Bonds
Corporate Bonds
Certificate of Deposit
US Treasury
Supranational
Restricted Investments:
Mutual Fund
Investments with Fiscal Agents:
Money Market Funds
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
$ 83,569,602
$ - $
-
$ -
$ 83,569,602
12,470,380
11,933,766
27,134,601
8,532,325
60,071,072
5,991,363
5,460,802
37,421,128
7,047,734
55,921,027
5,480,646
14,935,067
30,138,150
4,018,560
54,572,423
27,428,034
3,973,364
16,909,016
2,507,273
50,817,686
379,696
4,994,800
-
-
5,374,496
-
8,480,334
5,052,500
10,171,917
23,704,751
245,000
490,000
490,000
-
1,225,000
-
-
17,580,821
-
17,580,821
-
9,060,804
-
9,060,804
8,648,775
8,648,775
21,830,304 - - - 21,830,304
$ 166,043,800 $ 50,268,133 $ 143,787,020 $ 32,277,809 $ 392,376,761
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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, 2019:
Level
Investments by fair value level
Totals
Uncategorized 1
2 3
Local Agency Investment Fund
$ 83,569,602
$ 83,569,602 $ -
$ $
Federal Governmental Agencies
Federal Farm Credit Bank
60,071,072
- 60,071,072
Federal Home Loan Bank
55,921,027
55,921,027
Federal Home Loan Mortgage Corporation
54,572,422
-
54,572,422
Federal National Mortgage Association
50,817,686
50,817,686
-
Municipal Bonds
5,374,496
5,374,496
-
Corporate Bonds
23,704,752
-
23,704,752
Certificate of Deposit
1,225,000
1,225,000
-
US Treasury
17,580,821
17,580,821
-
Supranational
9,060,804
-
9,060,804
Cash with Fiscal Agents
Money Market Funds 21,830,304 21,830,304
Restricted Investments
Mutual Fund 8,648,775 - - 8,648,775
Totals $ 392,376,761 $ 105,399,906 $ 190,990,102 $ 95,986,753 $
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 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, 2019:
Governmental activities
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, 2019, the outstanding balance amounts
to $229,881, including accrued interest of $453. Accrued interest is offset by deferred
revenue.
67
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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, 2019, the advances paid
against this line of credit amount to $40,457,658 and accrued interest amounts to
$3,916,454 for a total of $44,374,112. 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, 2019, advances paid against
this line of credit amounts to $21,638,113 and accrued interest amounts
to $5,374,251 for a total balance of $27,012,364. 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, 2019, the advances paid against this line of credit amounted to $9,000,000
and accrued interest amounts to $3,333,008 for a total of $12,333,008. Accrued
interest is offset by deferred revenue.
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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, 2019, the advances paid against this line of credit amounted to
$6,499,910 and accrued interest amounts to $1,061,412 for a total of $7,561,322.
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, 2019, the advances paid against this line
of credit amounted to $2,465,659 and accrued interest amounts to $44,965, for a total
of $2,510,624. 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, 2019, the advances paid against this line of credit amounted
to $25,868,857 and accrued interest amounts to $6,015,607 for a total of $31,884,464.
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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, 2019, the outstanding balance amounts to $10,333,182, including
accrued interest of $4,404,001. 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, 2019, the
outstanding balance amounts to $4,476,761, including accrued interest of $202,361.
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 11. The interest of the loan is zero percent (0%) per annum. The principal and
any interest due under this Note shall be repaid or forgiven as set forth in the ADDLA,
as amended by a first Implementation and Amendment to Acquisition, Disposition,
Development and Loan Agreement dated February 17, 2016 between the Borrower's
predecessor -in -interest and City and a Second Implementation and Amendment to
Acquisition, Disposition, Development and Loan Agreement dated April 1, 2017. The
loan may be prepaid in full or in part, at any time without penalty or premium. On
April 1, 2017, the City entered into a Promissory Note Secured By Deed of Trust with
Villa Pacifica II LP ("Borrower"), not to exceed the sum of $8,683,821 consisting of the
existing Predevelopment Loan of $42,913 made by the City to the Developer, a
$2,880,000 purchase money loan in connection with the acquisition of land from City,
a $2,760,908 construction loan that is being partially disbursed on the date of the
closing for the 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 the 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, 2019,
the advances paid against this line of credit amounted to $8,683,821 and accrued
interest amounted of $367,498, for a total amount of $9,051,319.
70
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 4: Notes and Loans Receivables (Continued)
11. Day Creek Senior Housing Partners, L.P. and Day Creek Senior
Housing Partners 2, LP
On May 4, 2016, the City approved a Disposition, Development, and Loan Agreement
(DDLA) with Day Creek Senior Housing Partners, LP, also known as National CORE,
for the development of a 140-unit senior rental affordable housing project at west of
Day Creek Boulevard and north of Base Line Road. The DDLA was amended in
June 2017, June 2018, and March 2019.
On March 6, 2019, the City entered into land and construction loans in connection with
the DDLA:
The City Land Loan valued at $7,700,000, consisting of a purchase money loan for the
acquisition of the property from the City, was divided into two separate loans:
(1) City Land Loan to Day Creek Senior Housing Partners, LP (9% Tax Credit Owner)
in the amount of $4,896,303 and (2) City Land Loan to Day Creek Senior Housing
Partners 2, L.P. (4% Tax Credit Owner) in the amount of $2,803,697. Both loans bear
2.91 % interest compounded annually for 55 years. Payment of principal and interest
is 50% of the Residual Receipts, with payments credited toward accrued interest and
then to the outstanding principal, on an annual basis on June 1 of each calendar year.
As of June 30, 2019, the outstanding balances of the land loans are as follows:
(a) Day Creek Senior Housing Partners, LP amounts to $4,941,585 including $45,282
accrued interest and (b) Day Creek Senior Housing Partners 2, L.P. amounts to
$2,829,626 including $25,929 accrued interest. Accrued interest is offset by deferred
revenue.
The City Construction Loan valued at $5,700,000 with Day Creek Senior Housing
Partners 2, L.P. (4% Tax Credit Owner) was deposited to JPMorgan Chase Bank,
N.A.(Escrow) held and disbursed pursuant to the terms of the Escrow Agreement
among the City, 4% Tax Credit Owner, and JPMorgan Chase Bank, N.A. The loan
bears simple interest of 3% per annum from the date of disbursement from the Escrow
fund for a term of 55 years. 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, 2019,
the outstanding balance is $1,263,887 including accrued interest of $2,697. Accrued
interest is offset by deferred revenue.
12. 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, 2019, the outstanding balance amounts to $3,226,808 with no
interest due.
Total notes and loans receivables for governmental activities at June 30, 2019, including
accrued interest of $24,793,918, amounted to $162,028,943.
71
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 4: Notes and Loans Receivables (Continued)
Business -type activities
13. In October 2015, the City entered into an unsecured promissory note for the costs of
constructing 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, 2019, the outstanding balance amounts to $105,000.
Total notes and loans receivables for the business -type activities at June 30, 2019,
amounted to $105,000.
72
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 5: Capital Assets
Governmental activities capital assets for the year ended June 30, 2019, was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental Activities:
Capital assets, not being depreciated:
Land $ 92,936,535 $ 5,202,315 $ - $ $ 98,138,850
Right of way 237,012,767 - 237,012,767
Construction -in -progress 93,938,888 4,768,230 (36,406,951) (50,892,788) 11,407,379
Total Capital Assets,
Not Being Depreciated 423,888,190 9,970,545 (36,406,951) (50,892,788) 346,558,996
Capital assets, being depreciated:
Building improvements
173,292,493
1,382,938
43,222,879 217,898,310
Improvement other than buildings
42,757,851
153,499
- 42,911,350
Equipment and vehicles
48,882,020
6,024,846
(319,063) 54,587,803
Furniture and fixtures
3,760,609
22,881
- 3,783,490
Infrastructure
471,000,049
8,419,064
(2,160,935) 7,669,909 484,928,087
Intangible
3,328,862
-
- 3,328,862
Total Capital Assets,
Being Depreciated
Less accumulated depreciation:
Building improvements
Improvement other than buildings
Equipment and vehicles
Furniture and fixtures
Infrastructure
Intangible
Total Accumulated
Depreciation
Total Capital Assets,
Being Depreciated, Net
Governmental Activities
743, 021, 884 16, 003, 228 (2,479,998) 50, 892, 788 807, 437, 902
59,547,170
6,554,191
- 66,101,361
15,560,514
1,817,657
- 17,378,171
38, 855,155
2,668,080 (315, 888)
- 41, 207, 347
3,271,746
148,343 -
- 3,420,089
227,683,019
8,081,786 (1,386,183)
- 234,378,622
2,403,468
246,495 -
- 2,649,963
347,321,072
19,516,552 (1,702,071)
- 365,135,553
395,700,812 (3,513,324) (777,927) 50,892,788 442,302,349
Capital Assets, Net $ 819,589,002 $ 6,457,221 $ (37,184,878) $ - $ 788,861,345
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government
$ 345,213
Public safety - police
683,290
Public safety - fire protection
2,780,055
Engineering and public works
9,909,716
Community development
67,210
Community services
4,280,155
Internal service
1,450,913
Total Governmental Activities
$ 19,516,552
73
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 5: Capital Assets (Continued)
Business -type activities capital assets for the year ended June 30, 2019, was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Business -Type Activities:
Capital assets, not being depreciated:
Land
$ 5,451,015
$ - $
- $ -
$ 5,451,015
Construction -in -progress
1,543,997
1,126,775
- (974,426)
1,696,346
Total Capital Assets,
Not Being Depreciated
6,995,012
1,126,775
- (974,426)
7,147,361
Capital assets, being depreciated:
Building improvements
17,225,973
-
- -
17,225,973
Improvement other than buildings
6,368,130
-
- -
6,368,130
Equipment and vehicles
623,148
79,003
- -
702,151
Furniture and fixtures
6,004
-
- -
6,004
Infrastructure
27,719,738
2,253,771
- 974,426
30,947,935
Intangible
25,858
-
- -
25,858
Total Capital Assets,
Being Depreciated
51,968,851
2,332,774
- 974,426
55,276,051
Less accumulated depreciation:
Building improvements
10,770,050
431,198
- -
11,201,248
Improvement other than buildings
3,877,441
128,834
- -
4,006,275
Equipment and vehicles
516,269
15,415
- -
531,684
Furniture and fixtures
6,004
-
- -
6,004
Infrastructure
10,089,102
1,121,425
- -
11,210,527
Intangible
25,858
-
- -
25,858
Total Accumulated
Depreciation
25,284,724
1,696,872
- -
26,981,596
Total Capital Assets,
Being Depreciated, Net
26,684,127
635,902
- 974,426
28,294,455
Business -Type Activities
Capital Assets, Net
$ 33,679,139
$1,762,677 $
- $ -
$ 35,441,816
Depreciation expense was charged to functions/programs of the primary government
as follows:
Business -Type Activities:
Sports Complex
Municipal Utility
Fiber Optic Network
Total Business -Type Activities
$ 560,032
979,082
157,758
$ 1,696,872
74
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 6: Interfund Receivable, Payable and Transfers
The composition of interfund balances as of June 30, 2019, was as follows:
Due To/From Other Funds
Due to Other Funds
Nonmajor Nonmajor
Fire Governmental Fiber Optic Enterprise
Funds District Funds Network Fund Total
Due From Other Funds:
General Fund $ 31,563 $ 839,313 $516,206 $ 29,454 $ 1,416,536
Development Impact Fees 12,874 - - - 12,874
Housing Successor Agency 3,308 - 3,308
Nonmajor Governmental Funds 21,208 - 21,208
Municipal Utility 9,151 - 9,151
Total $ 78,104 $ 839,313 $ 516,206 $ 29,454 $ 1,463,077
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, 2019.
Advances To/From Other Funds
Advances from Other Funds
Lighting Fire Sports
Funds Districts District Complex Total
Advances to Other Funds:
General Fund $ 12,173,792 $ 1,553,545 $1,970,984 $ 15,698,321
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, 2019, the outstanding balance amounted to $12,173,792.
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
October 2023. At June 30, 2019, the outstanding balance amounted to $1,553,545.
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, 2019, the outstanding balance amounted to $1,970,984.
75
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 6: Interfund Receivable, Payable and Transfers (Continued)
Interfund Transfers
Transfers Out
General
Lighting
Fire
Municipal
Nonmajor
Funds
Fund
Districts
District
utility
Governmental
Total
Transfers In
General Fund
$ -
$ 125,000
$ -
$ 1,390,260
$ 296,690
$ 1,811,950
Lighting Districts
251,010
-
-
-
122,410
373,420
Fire District
-
-
3,230
3,230
Sports Complex
1,770,941
-
-
-
1,770,941
Internal Service Funds
1,939,730
-
158,630
-
2,098,360
Nonmajor Governmental
562,840
-
-
-
53,038
615,878
$ 4,524,521
$ 125,000
$ 158,630
$ 1,390,260
$ 475,368
$ 6,673,779
The General Fund transferred $251,010, $1,770,941, and $562,840 to the Lighting Districts Fund,
Sports Complex Fund and Nonmajor Governmental Funds, respectively, to cover the budgeted
amounts.
The Municipal Utility transferred $1,390,260 to the General Fund to cover the cost of
operations.
The Lighting Districts and the Nonmajor Governmental Funds transferred $125,000 and
$296,690 respectively to the General Fund for the purpose of providing financial resources to
cover expenditures.
Note 7: Long -Term Debt Obligations
a. Long -Term Debt — Governmental Activities
The following is a schedule of changes in governmental activities long-term debt for the
fiscal year ended June 30, 2019:
Beginning Ending Due Within
Balance Additions Repayments Balance One Year
Capital Leases:
Dell Blade Servers $ - $ 2,446,503 $ 527,330 $ 1,919,173 $ 453,174
Capital Leases Payable
On December 5, 2018, the City entered into leased purchase agreements with
Dell Financial Services to finance the acquisition of hardware equipment and software for
the replacement of the City's data center infrastructure. The total cost of the equipment and
related software acquired amounts to $2,446,503. The agreement requires annual
payments of $527,330 with an interest component of 4.715% per annum due February 111
of each year with the final payment due February 2023.
76
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 7: Long -Term Debt Obligations (Continued)
The future minimum lease obligations and the net present value of these minimum lease
payments as of June 30, 2019 are as follows:
Year ended Annual
June 30, Payment
2020
$ 527,330
2021
527,330
2022
527,330
2023
527,330
Total payments 2,109,320
Interest portion (190,147)
Present value of
lease payments $ 1,919,173
b. Long -Term Debt — Business -Type Activities
The following is a schedule of changes in business -type activities long-term debt for the
fiscal year ended June 30, 2019:
Beginning Ending Due Within
Balance Additions Repayments Balance One Year
2019 Lease Revenue Bonds $ - $ 12,195,000 $ - $ 12,195,000 $ 310,000
Unamortized bonds premium 1,371,795
Unamortized bonds discount (10,857)
Total $ 13,555,938
2019 Lease Revenue
On January 30, 2019, the Financing Authority issued the 2019 Lease Revenue Bonds
Series A (tax-exempt) in the amount of $9,875,000 and 2019 Lease Revenue Bonds Series
B (taxable) in the amount of $2,320,000 to finance the acquisition, design, construction and
equipment of an expansion to the City's existing fiber optic network pursuant to a lease
agreement between the City and the Financing Authority. Series A Bonds were issued with
a premium of $1,371,795 and Series B Bonds were issued with a discount of $10,857.
The Series A and B Bonds mature annually on May 1st, with Series A beginning in 2025
and through 2039 and Series B beginning in 2020 and through 2025. Interest on the Series
A and B Bonds is paid on May 1st and November 1st of each year, commencing
November 1, 2019 with interest ranging from 2.85% to 5.00%.
The Series A Bonds maturing on or before May 1, 2019 are not subject to redemption prior
to their maturities, while the Series A Bonds maturing on or after May 1, 2030 are subject
to optional redemption at the option of the Financing Authority as a whole or in part, on any
date on or after May 1, 2019, at a redemption price equal to the principal amount of the
Bonds. The Series B Bonds are not subject to optional redemption.
77
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 7
Note 8
Note 9
Long -Term Debt Obligations (Continued)
The following schedule illustrates the debt service requirements to maturity for the 2019
Lease Revenue Bonds Series A and B as of June 30, 2019:
Year Ending
June 30
2020
2021
2022
2023
2024
2025-2029
2030-2034
2035-2039
Series A Series B
Principal Interest
2,385,000
3,325,000
4,165,000
$ 545,590
449,456
449,456
449,456
449,456
2,053,781
1,359,781
519,000
Principal
Interest
$ 310,000
$ 84,013
425,000
60,375
440,000
47,838
450,000
34,638
465,000
21,138
230,000
7,188
Total $ 9,875,000 $ 6,275,976 $ 2,320,000 $ 255,190
The Bonds are secured by lease payment revenues, which consist of lease payments for
the use and possession of the Central Park facility. The lease payments are anticipated to
be realized from private connections to the fiber optic network that will generate revenues
for the City.
In the event of default, the Trustee, as the assignee of the Finance Authority under the
lease agreement for the Central Park facility, may exercise any remedies available
pursuant to the law. However, the Trustee may not accelerate the lease payments or
otherwise declare any lease payments not in default to be immediately due and payable,
terminate the lease agreement, or cause the leasehold interest of the Finance Authority or
of the City in the Central Park facility to be sold. The City in the event of default is liable
for the lease payment of the Central Park facility and the performance of the lease
agreement.
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, 2019, the outstanding amount of the advance was $3,953,624.
Compensated Absences
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.
Balance
June 30, 2018
Additions
Deletions
Balance Due in
June 30, 2019 One Year
Governmental Activities:
Compensated Absences $ 7,497,871 $ 5,302,114 $ 5,661,355 $ 7,138,630 $ 5,307,000
78
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 10: 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, 2019, were as follows:
Outstanding
Amount at
June 30, 2019
City of Rancho Cucamonga:
Assessment District 93-1
$ 830,000
Special Tax Refunding Bond, Series 2015:
Community Facilities District No. 2000-01
330,000
Community Facilities District No. 2000-02
3,137,000
Community Facilities District No. 2001-01 Series A
6,199,000
Community Facilities District No. 2001-01 Series B
600,000
Community Facilities District No. 2006-01
3,379,000
Community Facilities District No. 2006-02
2,016,000
Community Facilities District No. 2000-03
6,288,000
Community Facilities District No. 2003-01 Series A
12,585,000
Community Facilities District No. 2003-01 Series B
2,446,000
Community Facilities District No. 2004-01
29,495,000
Successor Agency of the Former Rancho Cucamonga
Redevelopment Agency:
Multi -Family Housing Revenue Bond:
Series 1997A
1,822,144
Total
$ 69,127,144
Note 11: Pension Plan Obligations
Net Pension
Deferred
Deferred
(Liability) Pension Outflows
Pension Inflows
CalPERS
City Miscellaneous Plan $ (48,282,497) $
13,724,060
$ (3,092,702)
Fire District Miscellaneous Plan (2,599,301)
731,952
(173,997)
Fire District Safety Plan (34,726,501)
9,705,614
(972,778)
$ (85,608,299) $ 24,161,626 $ (4,239,477)
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.
79
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: Pension Plan Obligations (Continued)
Fire District Miscellaneous and Safety Plans - All qualified permanent
and probationary Fire District's employees are eligible to participate in the
Safety Employee Pension Plan or Miscellaneous Employee Pension Plan, both
cost -sharing multiple employer defined benefit pension plans administered by the
California Public Employees' Retirement System (CalPERS). Benefit provisions under
the Plans are established by State statute and Local Government resolution. CalPERS
issues publicly available reports that include a full description of the pension plans
regarding benefit provisions, assumptions and membership information that can be
found on the CalPERS website.
Copies of PERS' annual financial report may be obtained from its executive office at
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.
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
City Miscellaneous Plans
Tier 1 " Tier 2" Tier 3 PEPRA
Prior to
September 1, 2010
2.5% @ 55
5 years service
monthly for life
minimum 50 yrs
September 1, 2010
but prior to
July 3, 2011
2.5% @ 55
5 years service
monthly for life
minimum 50 yrs
July 4, 2011
and after
2.0% @ 55
5 years service
monthly for life
minimum 50 yrs
January 1, 2013
and after
2.0% @ 62
5 years service
monthly for life
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%
contribution rates
Required employer 18.594% 18.594%
contribution rates
7.000%
18.594%
6.000%
18.594%
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: Pension Plan Obligations (Continued)
Fire District Miscellaneous Cost -Sharing Plans
Tier 1 *
Tier 2 `
PEPRA
Prior to
July 9, 2011
January 1, 2013
Hire date
July 9, 2011
but prior to
and after
January 1, 2013
Benefit formula
2.5% @ 55
2.0% @ 55
2.0% @ 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%,
1.426% - 2.418%,
1.000% - 2.500%,
compensation
50 yrs - 55+ yrs,
50 yrs - 63+ yrs,
52 yrs - 67+ yrs,
respectively
respectively
respectively
Required employee contribution rates
8.000%
7.000%
6.250%
Required employer contribution rates
22.916%
9.325%
7.091%
Fire District Safety Cost -Sharing Plans
Tier 1 " Tier 2 PEPRA
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible
compensation
Required employee contribution rates
Required employer contribution rates
Employees Covered
Prior to
July 9, 2011
January 1, 2013
July 9, 2011
but prior to
and after
January 1, 2013
3.0%@50
3.0%@55
2.7%@57
5 years service
5 years service
5 years service
monthly for life
monthly for life
monthly for life
minimum 50 yrs
minimum 50 yrs
minimum 50 yrs
3.000%, 50+ yrs
2.400% - 3.000%,
2.000% - 2.700%,
50 yrs - 55+ yrs,
50 yrs - 57+ yrs,
respectively
respectively
9.000%
9.000%
11.500%
37.213%
17.614%
12.212%
* Plan is closed to new entrants
As of the valuation date of June 30, 2017, the following employees were covered by the
benefit terms of the Plan:
Number of Members
City
Fire
Miscellaneous
Miscellaneous
Fire Safety
Description
Plans
Plans
Plans
Active members
491
22
91
Transferred members
197
4
8
Terminated members
276
9
3
Retired members and beneficiaries
295
20
71
Tota 1
1,259
55
173
81
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: 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, 2019, the employer contributions recognized as a reduction
to the net position liability for all the Plans were $8,474,713.
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, 2018, using an annual actuarial valuation as of June 30, 2017 rolled forward to
June 30, 2018 using standard update procedures. A summary of principal assumptions
and methods used to determine the net pension liability is shown below.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2017 valuation was rolled forward to determine the June 30, 2018 total
pension liability, based on the following actuarial methods and assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions
Discount Rate
Inflation
Projected Salary Increases
Mortality Rate Table (1)
Post Retirement Benefit
Increase
June 30, 2017
June 30, 2018
Entry Age Normal Cost Method
7.15%
2.75%
Varies by Entry Age and Service
Derived using CaIPERS' Membership Data for
all Funds
Contract COLA up to 2.0% until Purchasing
Power Protection Allowance Floor on
Purchasing Power applies, 2.50% thereafter
(1) The mortality table used was developed based on CaIPERS-specific data. The table
includes 15 yearsof mortality improvements using the Society of Actuaries Scale 90% of scale
MP 2016. For moredetails on this table, please refer to the December 2017 experience study
report (based on CaIPERSdemographic data from 1997 to 2015) that can be found on the
CaIPERS website.
:4
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: Pension Plan Obligations (Continued)
Changes of Assumptions
In 2018, demographic assumptions and inflation rate were changed in accordance to the
CaIPERS Experience Study and Review of Actuarial Assumptions December 2017. There
were no changes in the discount rate.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which 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
cash flows. Using historical returns of all of the funds' asset classes, expected compound
(geometric) returns were calculated over the short-term (first 10 years) and the long-term
(11+ 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 rounded 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 equal
to the single equivalent rate calculated above and adjusted to account for assumed
administrative expenses. The expected real rates of return by asset class are as followed:
Assumed Asset
Real Return
Real Return
Asset Class (1) Allocation
Years 1 - 10 (2)
Years 11+ (3)
Global Equity 50.00%
4.80%
5.98%
Fixed Income 28.00%
1.00%
2.62%
Inflation Assets 0.00%
0.77%
1.81 %
Private Equity 8.00%
6.30%
7.23%
Real Estate 13.00%
3.75%
4.93%
Liquidity 1.00%
0.00%
-0.92%
Total 100.00%
(1) In the System's CAFR, Fixed Income is included in Global
Debt Securities;
Liquidity is included in
Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(2) An expected inflation of 2.0% used for this period.
(3) An expected inflation of 2.92% used for this period.
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of
cash flows used to determine the discount rate assumed that contributions from plan
members will be made at the current member contribution rates and that contributions from
employers will be made at statutorily required rates, actuarially determined. Based on
those assumptions, the Plan's fiduciary net position was projected to be available to make
all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
83
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: 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, 2017 $ 212,888,198 $ 164,876,366 $ 48,011,832
Changes Recognized for the Measurement Period:
Service Cost
4,869,644
4,869,644
Interest on the Total Pension Liability
15,134,775
15,134,775
Changes of Assumptions
(1,496,029)
(1,496,029)
Difference between Expected and Actual Experience
2,212,199
-
2,212,199
Net Plan to Plan Resource Movement
-
(407)
407
Contributions from the Employer
4,622,851
(4,622,851)
Contributions from Employees
2,032,448
(2,032,448)
Net Investment Income
13,809,497
(13,809,497)
Benefit Payments including Refunds of Employee
Contributions
(8,728,016)
(8,728,016)
-
Administrative Expense
(256,923)
256,923
Other Miscellaneous Expense
-
242,458
(242,458)
Net Changes During 2017/19
11,992,573
11,721,908
270,665
Balance at: June 30, 2018
$ 224,880,771
$ 176,598,274
$ 48,282,497
As of June 30, 2019, the Fire District reported net pension liabilities for its proportionate
shares of the net pension liability of each rate plan of $37,325,802.
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, 2018, 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, 2017, rolled forward to June 30, 2018, 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, 2017 and 2018, was as follows:
Proportion - June 30, 2018
Proportion - June 30, 2018
Fire
Miscellaneous Plan
0.0672%
0.0690%
Changes - Increase (Decrease) 0.0017%
Fire
Safety Plan
0.5729%
0.5918%
0.0190%
84
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: 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%
Net Pension Liability 6.15% 7.15% 8.15%
City Miscellaneous Plan $ 80,072,313 $ 48,282,497 $ 22,162,812
Fire District Miscellaneous Plan 4,023,242 2,599,301 1,423,861
Fire District Safety Plan 53,456,229 34,726,501 19,380,843
$ 137,551,784 $ 85,608,299 $ 42,967,516
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, CaIPERS 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, 2018 (the measurement date), the City
incurred a pension expense of $6,839,810 for all Plans.
As of June 30, 2019, the following were the reported deferred outflows of resources and
deferred inflows of resources related to all pension plans:
Current year contributions that occurred after the
measurement date of June 30, 2018
Change of assumption
Difference between expected and actual experiences
Net difference between projected and actual earnings on
pension plan investments
Adjustment due to differences in proportions
Share of contribution calculation
Difference in proportionate share
Total
Deferred Outflows of Deferred Inflows of
Resources Resources
$ 9,519,392 $
10,103,925 1,922,261
2,555,312 1,739,536
727,211 -
1,246,928 16,700
- 560,980
8,858 -
$ 24,161,626 $ 4,239,477
85
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: Pension Plan Obligations (Continued)
Contributions subsequent to the measurement date in the amount of $9,519,392 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, 2020. 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
Outflowsi(Inflows)
June 30:
of Resources
2020
$ 5,116, 686
2021
6,163, 884
2022
571,501
2023
(1,218,474)
2024
(230, 840)
Note 12: PARS Retirement Enhancement Plan
Net Pension Deferred Pension Deferred Pension
Asset Outflows Inflows
PARS $ 3,469,467 $ 1,943,656 $ (2,351,862)
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 the total combined CalPERS age factor, but not exceeding 3%
at 60. Sample rates are as follows:
Age
55
56
57
58
59
60+
Tier 1 and Tier 2
0.000%
0.100
0.200
0.300
0.400
0.500
The City and the Fire District have the right to amend, modify or terminate the plan at any
time. Separate audited financial statements are not prepared.
Benefits are increased by a 2% annual cost of living adjustment after retirement. There are
no employee contributions for either tier.
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
0
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 12: PARS Retirement Enhancement Plan (Continued)
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, 2018, the following employees were covered by the
benefit terms of the Plan:
Description
Active employees
Inactives entitled to but yet receiving benefits
Inactives currently receiving benefits
Total
Contribution Description
Number of
Members
225
3
114
342
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, 2018 actuarial valuation
which positively impacted the actuarially determined rate.
For the year ended June 30, 2019, the employer contributions recognized as a decrease
to the net pension liability were $628,911.
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, 2018 using an annual actuarial valuation as of June 30, 2018. A summary
of principal assumptions and methods used to determine the net pension liability is shown
below.
87
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 12: PARS Retirement Enhancement Plan (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2018 total pension liabilities were based on the following actuarial methods
and assumptions:
Actuarial Valuation Date
Actuarial Cost Method
Actuarial Assumptions
Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit
Increase
Change in Assumptions
June 30, 2019
Entry Age Normal, Level Percent of Payroll
6.00% at June 30, 2018
2.75% annually
Aggregate - 3.00%
6.00% at June 30, 2017. Expected City
contributions projected to keep sufficient plan
assets to pay all benefits from trust
CaIPERS 1997-2015 Experience Study
Post -retirement mortality projected fully
generational with Society of Actuaries Scale
MP-2018
In the June 30, 2018 actuarial valuation, the discount rate was updated from 5.75% to
6.00%, the demographic assumptions were updated to CaIPERS 1997-2015 Experience
Study, and the mortality improvement scale was updated to Society of Actuaries Scale
MP-2018.
Discount Rate
The discount rate used to measure the total pension liability was 6.00%. The expected
long-term rate of return on investments was updated from 5.75% to 6.00%. 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.
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
Equity
48.25%
Fixed Income
45.00%
RE ITs
1.75%
Cas h
5.00%
Real Return
4.82%
1.47%
3.76%
0.06%
0
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 12: PARS Retirement Enhancement Plan (Continued)
Changes in the Net Pension Asset
The following table shows the changes in net pension asset recognized over the
measurement period.
Balance at: June 30, 2017
Changes Recognized for the Measurement Period:
Service Cost
Interest on the Total Pension Liability
Changes of Benefit Terms
Difference between Expected and Actual Experience
Changes of Assumptions
Contributions from the Employer
Contributions from Employees
Net Investment Income
Benefit Payments including Refunds of Employee
Contributions
Administrative Expenses
Net Changes During 2017/18
Balance at: June 30, 2018
Increase (Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability (Asset)
(a)
(b)
(c)=(a)-(b)
$ 29,791,333
$ 30,262,718
$ (471,385)
736,116
-
736,116
1,731,246
-
1,731,246
(323,105)
-
(323,105)
(1,975,546)
-
(1,975,546)
(683,589)
-
(683,589)
-
657,424
(657,424)
1,865,280 (1,865,280)
(837,663) (837,663) -
(39, 500) 39,500
(1,352,541) 1,645,541 (2,998,082)
$ 28,438,792 $ 31,908,259 $ (3,469,467)
Sensitivity of the Net Pension Asset to Changes in the Discount Rate
The following presents the net pension asset of the Plan as of the measurement date,
calculated using the discount rate of 6.00 percent, as well as what the net pension liability
would be if it were calculated using a discount rate that is 1 percentage -point lower
(5.00 percent) or 1 percentage -point higher (7.00 percent) than the current rate:
Discount Rate - 1% Current Discount Discount Rate +1%
(5.00%) Rate (6.00%) (7.00%)
Plan's Net Pension Liability (Assets) $ 788,999 $ (3,469,467) $ (6,959,475)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related
to Pensions
As of the start of the measurement period, the net pension asset was $471,385. For the
measurement period ending June 30, 2018, the City incurred a pension expense of
$281,185 for the Plan.
0
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 12: PARS Retirement Enhancement Plan (Continued)
As of June 30, 2019, the City has deferred outflows and deferred inflows of resources
related to pensions as follows:
Current year contributions that occurred after
the measurement date of June 30, 2018
Difference between Expected and Actual
Experiences
Change of Assumption
Net Difference between Projected and Actual
Earnings on Pension Plan Investments
Deferred Outflows Deferred Inflows of
of Resources Resources
628,911 $
- 1,764,553
1,283,937 587,309
30,808
Total $ 1,943,656 $ 2,351,862
$628,911 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, 2020. Other amounts reported as deferred outflows or deferred
inflows of resources related to pensions will be recognized as pension expense as follows:
Year ended
June 30:
De fe rre d
Outflowst(inflows) of
Resources
2020
$ 160,016
2021
(53, 384)
2022
(399, 786)
2023
(143, 054)
2024
(188, 930)
Thereafter
(411, 979)
Note 13: 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.
.c
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 13: Other Post -Employment Benefits (Continued)
Employees Covered
As of the June 30, 2018, measurement date, the following current and former employees
were covered by the benefit terms under the HC Plan:
De scri
Active members
Inactives entitled to but not yet receiving
Inactives currently receiving benefits
Tota I
Funding Policy
Number of
Members
110
6
68
184
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, 2018 actuarial valuation. These contributions are
netted against the reimbursements received from the CERBT. During the June 30, 2018
measurement period, the City paid $808,623 in premiums for retiree medical insurance
and was reimbursed $749,647, and the implied subsidy was $298,000, for a total
contribution of $467,000.
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2018 and the total
OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation dated June 30, 2017 that was rolled forward to determine the June 30, 2018 total
OPEB liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method
Actuarial Assumptions
Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate
Mortality Improvement
Healthcare Trend Rate
Entry Age Normal
5.50%
2.75%
3.00% per annum, in aggregate
N/A
CalPERS 1997-2015 Experience Study
Post -retirement mortality projected fully
generational with Scale MP-2017
Non --Medicare - 7.5% for 2019, decreasing to
an ultimate rate of 4.0% in 2076
Medicare - 6.5% for 2019, decreasing to
an ultimate rate of 4.0% in 2076
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.
91
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 13: Other Post -Employment Benefits (Continued)
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%
TIPS
26.00%
1.29%
Commodities
3.00%
0.84%
REITs
8.00%
3.76%
Total
100.00%
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:
Balance at: June 30, 2018
Changes Recognized for the Measurement Period:
Service Cost
Interest on the Total Pension Liability
Changes of Benefit Terms
Difference between Expected and Actual Experience
Changes of Assumptions
Contributions from the Employer
Net Investment Income
Benefit Payments including Refunds of Employee
Contributions
Administrative Expenses
Net Changes During 2018/19
Balance at: June 30, 2019
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
(a) (b) (c)=(a)-(b)
$ 28,558,000 $ 28,267,000 $ 291,000
412,316 - 412,316
1,562,020 1,562,020
998,969 (998,969)
1,339,488 (1,339,488)
(1,143,902) (1,143,902) -
- (52,080) 52,080
830,434 1,142,475 (312,041)
$ 29,388,434 $ 29,409,475 $ (21,041)
'11
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 13: Other Post -Employment Benefits (Continued)
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, 2018:
Current
1%Decrease Discount Rate 1%Increase
(4.509/6) (5.50%) (6.50%)
Net OPEB Liability / (Asset) $ 4,312,353 $ (21,041) $ (3,544,166)
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, 2018:
Current Healthcare
1%Decrease Cost Trent Rates 1%Increase
(6.5%/5.5% decreasing (7.5%/6.5% decreasing (8.5%/7.5% decreasing
to 3.00%) to 4.00%) to 5.00%)
Net OPEB Liability / (Asset) $ (3,897,136) $ (21,041) $ 4,754,136
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, 2019, the City recognized OPEB expense of $529,916.
As of June 30, 2019, the City reported deferred outflows of resources related to OPEB from
the following sources:
OPEB contributions subsequent to measurement date
Net difference between projected and actual earnings
on OPEB plan investments
Tota I
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 469,195 $ -
212,012 -
$ 681,207 $ -
93
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 13: Other Post -Employment Benefits (Continued)
The $469,195 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net OPEB
liability during the fiscal year ending June 30, 2020. Other amounts reported as deferred
outflows of resources related to OPEB will be recognized as expense as follows:
Deferred
Year ended Outflowst(Inflows) of
June 30: Resources
2019 $ 56,753
2020 56,753
2021 55,753
2022 42,753
Note 14: Summary Disclosure of Self -Insurance Contingencies
The City and the Fire District are exposed to various risks of loss related to torts; theft of,
damage to, and destruction of assets; errors and omissions; and natural disasters for which
the Member Entity obtains insurance coverage.
The City and the Fire District are a members of the Public Agency Risk Sharing Authority of
California-PARSAC (Authority), a joint powers authority, which provides joint protection
programs for public entities covering automobile, general liability, errors and omission losses,
workers' compensation, and property claims. Under the program, the City and Fire District have
a $500,000 retention limit for liability, which is similar to a deductible, with the Authority being
responsible for losses above that amount up to $1,000,000. The Authority carries an excess
commercial liability policy of $25,000,000 in excess of its $1,000,000 retention limit to cover
losses through affiliated risk management authorities. The Authority also provides one billion
dollars aggregate per occurrence property coverage to its members with such coverage
provided by purchased insurance.
Liabilities of the City and the Fire District are reported when it is probable that a loss has
occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount
for claims that have been incurred but not reported (IBNRs). The result of the process to
estimate the claims liability is not an exact amount as it depends on many complex factors,
such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are
reevaluated periodically to consider the effects of economic and social factors. The estimate of
the claims liability also includes amounts for incremental claim adjustment expenses related to
specific claims and other claim adjustment expenses regardless of whether allocated to specific
claims. Estimated recoveries, for example from salvage or subrogation, are another component
of the claims liability estimate.
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, 2019 estimated claims liability for
94
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 14: Summary Disclosure of Self -Insurance Contingencies (Continued)
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.
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, 2019 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
$7,589,947 is adequate to cover such losses. The liability will be paid as it becomes due by the
General Fund and the Fire District Fund.
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
Ended Balance Estimates
June 30, 2018 $ 4,414,483
June 30, 2019 3,518,873
Note 15: Commitments and Contingencies
Claim Ending
Payments Balance
563,504 $ (1,459,114) $ 3,518,873
1,439,791 (1,865,020) 3,093,644
The following schedule summarizes the major contractual commitments as of June 30, 2019:
Expenditures to
date as of June Remaining
Project Name Contract Amount 30, 2019 Commitments
Fiber Optic Network $ 11,863,998 $ 1,126,775 $ 10,737,223
95
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 16: Special Item
Project costs incurred for the Base Line Road at 1-15 project that are to remain the City's capital
assets have been capitalized as infrastructure and depreciated over the life of the capital asset.
Other entities' project costs accumulated in construction in progress were expensed as of
June 30, 2019, as they will be capitalized as part of those entities' financial statements.
Management's allocation of project costs is generally based upon each entity's proportionate
share of the infrastructure components of the project. This allocation was not able to be readily
determined until the project's completion.
As a result, the City expensed $36,406,951 of project costs during the year ended
June 30, 2019. The provisions made to estimate the expenditures for the Base Line Road at
1-15 project reflect a special item during the fiscal period.
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill")
that provides for the dissolution of all redevelopment agencies in the State of California. This
action impacted the reporting entity of the City of Rancho Cucamonga that previously had
reported a redevelopment agency within the reporting entity of the City as a blended component
unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another
unit of local government will agree to serve as the "successor agency" to hold the assets until
they are distributed to other units of state and local government. On January 11, 2012, the City
elected to become the Successor Agency for the former redevelopment agency in accordance
with the Bill as part of City resolution number 12-001.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the
State of California cannot enter into new projects, obligations or commitments. Subject to the
control of a newly established oversight board, remaining assets can only be used to pay
enforceable obligations in existence at the date of dissolution (including the completion of any
unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is
necessary to pay the estimated annual installment payments on enforceable obligations of the
former redevelopment agency until all enforceable obligations of the prior redevelopment
agency have been paid in full and all assets have been liquidated.
The Bill directs the State Controller of the State of California to review the propriety of any
transfers of assets between redevelopment agencies and other public bodies that occurred
after January 1, 2011. If the public body that received such transfers is not contractually
committed to a third party for the expenditure or encumbrance of those assets, the
State Controller is required to order the available assets to be transferred to the public body
designated as the successor agency by the Bill.
Management believes, in consultation with legal counsel, that the obligations of the former
redevelopment agency due to the City are valid enforceable obligations payable by the
successor agency trust under the requirements of the Bill. The City's position on this issue is
not a position of settled law and there is considerable legal uncertainty regarding this issue. It
is reasonably possible that a legal determination may be made at a later date by an appropriate
judicial authority that would resolve this issue unfavorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California
Supreme Court on December 29, 2011) all redevelopment agencies in the State of California
were dissolved and ceased to operate as a legal entity as of February 1, 2012.
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
a. Cash and investments
Cash and investments reported in the accompanying financial statements consisted of
the following:
Cash and investments $ 22,127,391
Cash and investments with fiscal agent 8,580
$ 22,135,971
b. Loans Receivable
Notes and loans receivables consist of the following at June 30, 2019:
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, 2019, the
outstanding balance was $10,827,671.
c. Long -Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the
Successor Agency as of June 30, 2019, follows:
Tax Allocation Bonds
Tax Allocation Refunding
Bonds - 2007 Issue
Tax Allocation Refunding
Bonds - 2014 Issue
Tax Allocation Refunding
Bonds - 2016 Issue
Total Bonds
Developer Loans
Bank of New York
Total Developer Loans
Total
Balance Balance Due Within
July 1, 2018 Additions Repayments June 30, 2019 One Year
$ 62,640,000 $
$ 2,380,000
$ 60,260,000
$ 2,530,000
155,120,000
7,190,000
147,930,000
7,550,000
54,975,000
1,615,000
53,360,000
1,665,000
272,735,000
11,185,000
261,550,000
11,745,000
7,926,865
719,475
7,207,390
784,030
7,926,865
719,475
7,207,390
784,030
$ 280,661,865 $
$ 11,904,475
268,757,390
$ 12,529,030
Unamortized Premium
25,549,961
Total
$ 294,307,351
97
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Tax Allocation Bonds
Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project,
Housing Set -aside Tax Allocation Bonds, Tax Exempt Series 2007A and Taxable
Series 2007B. $155,620,000. In November 2007, the Rancho Cucamonga
Redevelopment Agency issued $73,305,000 Rancho Redevelopment Project Housing
Set -Aside Tax Allocation Bonds Tax -Exempt Series 2007A and
$82,315,000 Rancho Redevelopment Project Housing Set -Aside Tax Allocation Bonds
Taxable series 2007B to (a) refund and redeem the Agency's outstanding
Rancho Redevelopment Project 1996 Housing Set -Aside Tax Allocation Bonds,
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.
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.
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The balance at June 30, 2019, amounted to $60,260,000 plus unamortized bond
premium of $269,685. The following schedule illustrates the debt service requirements
to maturity for the 2007 Tax Allocation Refunding Bonds as of June 30, 2019:
Year Ending
June 30
Principal
Interest
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
3,225,000
2,976,798
2025-2029
27,280,000
11,001,395
2030-2034
18,645,000
1,203,400
Total
$ 60,260,000
$ 28,937,328
If an Event of Default shall occur, then, and in each and every such case during the
continuance of such Event of Default, the Trustee may, with the consent of the Insurer
and if requested in writing by the Owners of a majority in aggregate principal amount
of the Bonds then Outstanding or if directed by the Insurer, the Trustee shall (a) declare
the principal of the Bonds, together with the accrued interest thereon, to be due and
payable immediately, and upon any such declaration the same shall become
immediately due and payable, anything in the Indenture or in the Bonds to the contrary
notwithstanding, and (b) subject to the provisions of the Indenture, exercise any other
remedies available to the Trustee and the bond owners in law or at equity.
2. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project
Area Tax Allocation Refunding Bonds, Series 2014. $174,050,000. These bonds
are dated July 15, 2014, and were issued to refinance certain obligations of the Project
Area including the 1999 Tax Allocation Refunding Bonds, 2001 Tax Allocation Bonds
and 2004 Tax Allocation Bonds. The Bonds will be payable from and secured by,
designated property tax revenues (formerly tax increment revenues) related to the
Rancho Redevelopment Project, which will consist of moneys deposited, from time to
time, in the Redevelopment Property Tax Trust Fund ("RPTTF") established under the
Dissolution Act, defined below, but exclude those amounts which were, prior
to the Dissolution Act, required to be deposited into the Former Agency's Low
and Moderate Income Housing Fund to the extent required to pay debt service on
existing Housing Obligations. Interest is payable semi-annually on March 1 and
September 1, of each year commencing March 1, 2015. The bonds mature in annual
installments ranging from $2,750,000 to $14,235,000 starting September 1, 2015 to
September 1, 2032, and bear interest ranging from 3% to 5%.
The balance at June 30, 2019, amounted to $147,930,000 plus unamortized bond
premium of $19,064,255 and unamortized gain on defeasance of $1,793,187.
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The following schedule illustrates the debt service requirements to maturity for the
2014 Tax Allocation Refunding Bonds as of June 30, 2019:
Year Ending
June 30
Principal
Interest
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
9,175,000
5,540,625
2025-2029
53,230,000
20,161,750
2030-2034
52,995,000
5,461,125
Total
$ 147,930,000
$ 57,595,250
If an Event of Default has occurred and is continuing, the Trustee may
(but only with the consent of the Insurer), and if requested in writing by the Owners of
a majority in aggregate principal amount of the Bonds then Outstanding, the Trustee
shall (but only with the consent of the Insurer), (a) declare the principal of the Bonds,
together with the accrued interest thereon, to be due and payable immediately, and
upon any such declaration the same shall become immediately due and payable,
anything in the Indenture or in the Bonds to the contrary notwithstanding, and
(b) exercise any other remedies available to the Trustee and the bond owners in law
or at equity.
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, 2019, amounted to $53,360,000 plus unamortized bond
premium of $6,216,021 and unamortized loss on defeasance of $2,405,978.
100
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The following schedule illustrates the debt service requirements to maturity for the
2016 Tax Allocation Refunding Bonds as of June 30, 2019:
Year Ending
June 30
Principal
Interest
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
1,965,000
1,887,175
2025-2029
6,505,000
8,062,625
2030-2034
27,760,000
5,934,200
2035
10,060,000
201,200
Total $ 53,360,000 $ 24,475,050
If an Event of Default has occurred and is continuing, the Trustee may
(but only with the consent of the Insurer), and if requested in writing by the Owners of
a majority in aggregate principal amount of the Bonds then Outstanding the Trustee
shall (but only with the consent of the Insurer), (a) declare the principal of the Bonds,
together with the accrued interest thereon, to be due and payable immediately, and
upon any such declaration the same shall become immediately due and payable,
anything in the Indenture or in the Bonds to the contrary notwithstanding, and
(b) exercise any other remedies available to the Trustee and the bond owners on law
or at equity.
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, 2019, amounted to $7,207,390.
The following schedule illustrates the debt service requirements to maturity for the
Bank of New York loan as of June 30, 2019:
Year Ending
June 30 Principal
2019 $ 784,030
2020 854,379
2021
931,041
2022
1,014,580
2023
1,105,615
2024 - 2026
2,517,745
Total $
7,207,390
Interest
$ 615,970
545,621
468,959
385,420
284,385
282,255
$ 2,582,610
101
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
All outstanding principal and interest due under this note shall be due and payable in
full on the earliest to occur of: March 15 , 2026, or the date of an event of default.
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 $382,347,628 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 $26,431,518 and the debt service obligation on the bonds
was $26,271,274.
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, 2019, is $2,544,000.
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, 2019, the Agency made payments
totaling $610,222.
102
REQUIRED SUPPLEMENTARY
INFORMATION
103
CITY OF RANCHO CUCAMONGA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2019
Budgetary Comparison Information
a. Budget Data
General Budaet Policies
The annual budget adopted by the City Council provides for the general operation of the City. It
includes proposed expenditures and the means of financing them. The City Council approves each
year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The
Council conducts budget study sessions prior to holding a public hearing to adopt the budget.
When required during the period, the Council also approves supplemental appropriations. There
were several supplemental appropriations required during the year. A comprehensive update to
budgeted figures occurs once per year as part of the Amended Budget process which is presented
to the Council in May each fiscal year for approval. There were no significant non -budgeted
financial activities during the year.
The City Council may transfer funds between funds or activities set forth in the budget. The
City Manager may transfer funds between line items within an appropriation as set forth in the
budget and may transfer appropriations between activities within any fund. The level of budgetary
control (that is the level at which expenditures cannot legally exceed the appropriated amount) is
established at the fund level within the General Fund, 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.
For the fiscal year ended June 30, 2019, the SB 140 fund and the Energy Efficient and Conservation
Block Grant fund had no adopted annual budgets due to the timing of the usage of these funds.
Money will be budgeted as needed based on specific projects.
104
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
GENERAL FUND
YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 115,082,093
$ 115,082,093
$ 115,082,093
$ -
Resources (Inflows):
Taxes
70,588,230
71,336,260
72,418,242
1,081,982
Licenses and permits
4,316,210
4,315,000
4,681,116
366,116
Intergovernmental
523,610
656,650
595,600
(61,050)
Charges for services
3,446,040
4,855,770
5,272,230
416,460
Use of money and property
1,785,430
1,703,310
3,444,783
1,741,473
Fines and forfeitures
1,345,250
1,430,180
1,669,472
239,292
Contributions
86,660
119,160
124,459
5,299
Miscellaneous
2,539,990
3,649,290
4,493,260
843,970
Transfers in
1,578,680
1,811,950
1,811,950
-
Proceeds from sale of capital asset
50,070
64,300
59,417
(4,883)
Amounts Available for Appropriations
201,342,263
205,023,963
209,652,622
4,628,659
Charges to Appropriations (Outflow):
General government
General overhead
2,574,830
3,810,990
3,327,806
483,184
Personnel overhead
1,048,620
1,738,340
1,811,813
(73,473)
City council
126,720
117,740
117,720
20
City management
957,580
914,110
902,829
11,281
City clerk
1,970
2,000
1,970
30
Administrative services
292,650
292,920
278,494
14,426
Business licenses
361,430
323,500
317,804
5,696
City facilities
1,068,930
1,176,020
972,676
203,344
Finance
1,471,820
1,420,690
1,395,819
24,871
Innovation and technology
3,946,600
4,060,930
3,825,369
235,561
Personnel
708,290
766,350
747,737
18,613
Procurement
256,070
266,520
261,559
4,961
Risk management
274,040
269,970
244,388
25,582
Treasury management
12,390
12,330
10,928
1,402
Communications
272,160
212,890
178,849
34,041
Records management
580,390
434,270
432,922
1,348
Healthy RC Program
595,640
590,230
580,010
10,220
Public safety - police
Sheriff contract services
40,312,660
40,737,160
39,754,251
982,909
Public safety - animal center
Animal center
3,325,790
3,304,420
3,230,781
73,639
Community development
Planning
1,632,150
2,882,730
2,782,126
100,604
Planning commission
23,880
18,790
17,476
1,314
Community improvement
721,650
679,500
621,156
58,344
Administration
1,201,320
1,416,790
1,257,521
159,269
Building and safety
1,932,690
1,858,760
1,759,152
99,608
Community services
Administration
5,232,070
5,080,640
4,743,344
337,296
Engineering and public works
Engineering administration
615,010
651,060
610,297
40,763
Development management
888,810
909,200
868,993
40,207
NPDES
384,650
381,350
371,617
9,733
Project management
488,090
512,460
484,524
27,936
Traffic management
335,930
194,060
192,929
1,131
Park maintenance
3,261,010
3,226,760
2,730,749
496,011
Vehicle and equipment maintenance
1,071,050
979,540
943,245
36,295
City facilities maintenance
3,871,380
3,812,350
3,317,453
494,897
Street maintenance
2,302,840
2,370,670
2,115,452
255,218
Fire facilities maintenance
252,420
239,180
231,865
7,315
Capital outlay
8,078,780
11,150,045
7,396,478
3,753,567
Transfers out
2,997,100
3,213,270
4,524,521
(1,311,251)
Total Charges to Appropriations
93,479,410
100,028,535
93,362,623
6,665,912
Budgetary Fund Balance, June 30 (Budgetary Basis)
$ 107,862,853
$ 104,995,428
116,289,999
$ 11,294,571
Encumbrances
2,490,846
Budgetary Fund Balance, June 30 (GAAP Basis)
$ 118,780,845
105
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
DEVELOPMENT IMPACT FEES
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Community development
Engineering and public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 44,741,927
$ 44,741,927
$ 44,741,927
$ -
-
-
332,553
332,553
105,000
232,180
380,872
148,692
696,520
897,560
1,723,545
825,985
4,640,000
10,036,200
13,274,348
3,238,148
-
-
14,277
14,277
50,183,447
55,907,867
60,467,522
4,559,655
135,810
135,080
130,327
4,753
1,151,410
1,348,920
1,062,288
286,632
5,781,750
9,676,130
4,266,911
5,409,219
7,068,970
11,160,130
5,459,526
5,700,604
$ 43,114,477
$ 44,747,737
55,007,996
$ 10,260,259
809,518
$ 55,817,514
1:
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
LIGHTING DISTRICTS
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Developer participation
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Capital outlay
Debt service:
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$(6,956,936)
$ (6,956,936)
$ (6,956,936)
$ -
2,091,670
2,091,670
2,092,944
1,274
65,360
94,830
197,954
103,124
2,430
2,430
96
(2,334)
-
-
722,109
722,109
251,010
373,420
373,420
-
(4,546,466)
(4,394,586)
(3,570,413)
824,173
1,546,830
2,100,240
1,872,015
228,225
120,000
207,120
146,098
61,022
123,430
124,860
124,817
43
-
125,000
125,000
-
1,790,260
2,557,220
2,267,930
289,290
$(6,336,726) $ (6,951,806)
(5,838,343) $ 1,113,463
251,238
$ (5,587,105)
107
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
HOUSING SUCCESSOR AGENCY
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Community development
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 135,900,697 $ 135,900,697 $ 135,900,697 $
94,660 155,480 4,067,934 3,912,454
12,000 12,000 340,438 328,438
136,007,357 136,068,177 140,309,069 4,240,892
280,850 376,870 376,025 845
4,200,000 8,700,000 - 8,700,000
4,480,850 9,076,870 376,025 8,700,845
$ 131,526,507 $ 126,991,307 139,933,044 $ 12,941,737
Budgetary Fund Balance, June 30 (GAAP Basis) $ 139,933,044
108
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
FIRE DISTRICT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Proceeds from sale of capital asset
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public safety - fire protection
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 64,861,527
$64,861,527
$64,861,527
$ -
40,762,860
41,996,360
42,000,893
4,533
16,500
16,500
16,141
(359)
-
10,000
10,000
-
4,320
5,140
2,066
(3,074)
1,025,290
992,320
2,374,649
1,382,329
74,000
181,000
158,624
(22,376)
1,568,320
1,591,750
1,599,482
7,732
-
3,230
3,230
-
-
-
1,321
1,321
108,312, 817
109,657, 827
111,027,933
1,370,106
34,834,010
34,326,990
32,247,382
2,079,608
13,696,610
16,106,540
4,990,704
11,115,836
322,830
322,830
-
322,830
77,830
77,830
77,830
-
-
158,630
158,630
-
48,931,280
50,992,820
37,474,546
13,518,274
$ 59,381,537 $58,665,007 73,553,387 $ 14,888,380
2,490,093
$ 76,043,480
109
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
2019
TOTAL PENSION LIABILITY
Service Cost
$
4,661,973
$ 4,342,707
$ 4,193,507
$ 4,743,810
$ 4,869,644
Interest
12,370, 506
12, 931,479
13,651, 750
14, 301,966
15,134,775
Difference between Expected and Actual Experience
-
(3,882,722)
(1,557,585)
(1,926,722)
(1,496,029)
Changes in Assumptions
(3,352,733)
-
12,495,866
2,212,199
Benefit Payments, Including
Refunds of Employee Contributions
(5,229,846)
(5,847,197)
(6,606,205)
(7,626,368)
(8,728,016)
Net Change in Total Pension Liability
11,802,633
4,191,534
9,681,467
21,988,552
11,992,573
Total Pension Liability - Beginning
165,224,012
177,026,645
181,218,179
190,899,646
212,888,198
Total Pension Liability - Ending (a)
$
177,026,645
$ 181,218,179
$ 190,899,646
$ 212,888,198
$ 224,880,771
PLAN FIDUCIARY NET POSITION
Contributions - Employer
$
3,520,721
$ 3,433,074
$ 3,745,698
$ 4,207,753
$ 4,622,851
Contributions - Employee
2,156,312
2,074,191
2,120,443
2,150,126
2,032,448
Net Investment Income
21,772,350
3,320,843
782,082
16,691,043
13,809,497
Benefit Payments, Including
Refunds of Employee Contributions
(5,229,846)
(5,847,197)
(6,606,205)
(7,626,368)
(8,728,016)
Administrative Expense
(168,508)
(91,249)
(220,985)
(256,923)
Net Plan to Plan Resource Movement
(407)
Other Miscellaneous Income/(Expense)
-
-
-
242,458
Net Change in Fiduciary Net Position
22,219,537
2,812,403
(49,231)
15,201,569
11,721,908
Plan Fiduciary Net Position - Beginning
124,692,088
146,911,625
149,724,028
149,674,797
164,876,366
Plan Fiduciary Net Position - Ending (b)
$
146,911,625
$ 149,724,028
$ 149,6749797
$ 164,876,366
$ 176,598,274
Plan Net Pension Liability/(Assets) - Ending (a) - (b)
$
3051159020
$ 31,494,151
$ 41,224,849
$ 48,011,832
$ 48,282,497
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
82.99%
82.62%
78.40%
77.45%
78.53%
Covered Payroll
$
2558199515
$ 25,0825858
$ 25,682,090
$ 26,459,567
$ 27,268,038
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll
116.64%
125.56%
160.52%
181.45%
177.07%
(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 five 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.
110
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 2019
Actuarially Determined Contribution $ 3,433,074 $ 3,745,756 $ 4,192,505 $ 4,642,132 $ 5,135,066
Contribution in Relation to the Actuarially Determined Contribution (3,433,074) (3,745,756) (4,192,505) (4,642,132) (5,135,066)
Contribution Deficiency (Excess) $ - $ - $ - $ - $
Covered Payroll $ 25,082,858 $ 25,682,090 $ 26,459,567 $ 27,268,038 $ 27,077,712
Contributions as a Percentage of Covered Payroll 13.69% 14.59% 15.84% 17.02% 18.96%
(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 five years are shown.
Note to Schedule:
Valuation Date:
June 30, 2017
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%.
111
CITY OF RANCHO CUCAMONGA
COST SHARING MULTIPLE -EMPLOYER PLAN - 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
2019
Proportion of the Net Pension Liability
0.02166%
0.02652%
0.06568%
0.06723%
0.06897%
Proportionate Share of the Net Pension Liability
$ 1,348,194
$ 1,819,909
$ 2,281,501
$ 2,650,258
$ 2,599,301
Covered Payroll
$ 1,474,657
$ 1,437,227
$ 1,524,047
$ 1,577,007
$ 1,619,191
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll
91.42%
126.63%
149.70%
168.06%
160.53%
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
79.82%
78.40%
75.87%
75.39%
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 five years are shown.
112
CITY OF RANCHO CUCAMONGA
COST SHARING MULTIPLE -EMPLOYER PLAN - MISCELLANEOUS RATE PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018 2019
Actuarially Determined Contribution $ 210,430 $ 219,901 $ 238,202 $ 254,681 $ 283,247
Contribution in Relation to the Actuarially Determined Contribution (210,430) (219,901) (238,202) (254,681) (283,247)
Contribution Deficiency (Excess) $ - $ - $ - $ - $
Covered Payroll $ 1,437,227 $ 1,524,047 $ 1,577,007 $ 1,619,191 $ 1,593,099
Contributions as a Percentage of Covered Payroll 14.64% 14.43% 15.10% 15.73% 17.78%
(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 five years are shown.
Note to Schedule:
Valuation Date:
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method
Amortization method
Assets valuation method
Discount Rate
Projected Salary Increases
Inflation
Payroll Growth
Individual Salary Growth
June 30, 2017
Entry Age Normal Cost Method
Level percentage of payroll, closed
Market Value
7.15% (net of administrative expenses)
3.00%
2.75%
3.00%
A merit scale varying by duration of employment
coupled with an assumed annual inflation of
2.75% and an annual production growth of
0.25%.
113
CITY OF RANCHO CUCAMONGA
COST SHARING MULTIPLE -EMPLOYER PLAN - SAFETY RATE PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Proportion of the Net Pension Liability
Proportionate Share of the Net Pension Liability
Covered Payroll
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
2015
2016
2017
2018
2019
0.31131 %
0.33146%
0.57027%
0.57286%
0.59184%
$ 19,373,864
$ 22,750,560
$ 29,535,666
$ 34,229,524
$ 34,726,501
$ 10,396,960
$ 10,554,523
$ 11,373,722
$ 11,451,394
$ 11,663,014
186.34%
215.55%
259.68%
298.91 %
297.75%
79.82%
78.40%
72.69%
71.74%
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 five years are shown.
114
CITY OF RANCHO CUCAMONGA
COST SHARING MULTIPLE -EMPLOYER PLAN - SAFETY RATE PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018 2019
Actuarially Determined Contribution $ 2,827,842 $ 3,007,980 $ 3,273,056 $ 3,577,900 $ 4,101,079
Contribution in Relation to the Actuarially Determined Contribution (2,827,842) (3,007,980) (3,273,056) (3,577,900) (4,101,079)
Contribution Deficiency (Excess) $ - $ - $ - $ - $
Covered Payroll $ 10,554,523 $ 11,373,722 $ 11,451,394 $ 11,663,014 $ 12,029,495
Contributions as a Percentage of Covered Payroll 26.79% 26.45% 28.58% 30.68% 34.09%
(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 five years are shown.
Note to Schedule:
Valuation Date:
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method
Amortization method
Assets valuation method
Discount Rate
Projected Salary Increases
Inflation
Payroll Growth
Individual Salary Growth
June 30, 2017
Entry Age Normal Cost Method
Level percentage of payroll, closed
Market Value
7.15% (net of administrative expenses)
3.00%
2.75%
3.00%
A merit scale varying by duration of employment
coupled with an assumed annual inflation of
2.75% and an annual production growth of 0.25%.
115
CITY OF RANCHO CUCAMONGA
PARS RETIREMENT ENHANCEMENT PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
TOTAL PENSION LIABILITY
Service Cost
Interest
Changes of Benefits Terms
Difference Between Expected and Actual Experience
Changes in Assumptions
Changes in Benefit Terms
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
PLAN FIDUCIARY NET POSITION
Contribution - Employer
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Other Changes in Fiduciary Net Position
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability/(Assets) - Ending (a) - (b)
2015 2016 2017 2018 2019
$ 719,000 $ 743,000 $ 716,000 $ 774,673 $ 736,116
1,329,000 1,425,000 1,523,000 1,639,815 1,731,246
- - 538,000 - -
(110,000) (1,975,546)
2,100,000 (683, 589)
- (4,236) (323,105)
(495,000) (546,000) (631,000) (719,919) (837,663)
1,553,000 1,622,000 4,136,000 1,690,333 (1,352,541)
20,790,000 22,343,000 23,965,000 28,101,000 29,791,333
$ 22,343,000 $ 23,965,000 $ 28,101,000 $ 29,791,333 $ 28,438,792
$ 497,000 $ 467,000 $ 312,000 $ 279,830 $ 657,424
3,177,000 660,000 21,000 2,872,446 1,865,280
(495,000) (546,000) (631,000) (719,919) (837,663)
(33,000) (47,000) (35,000) (52,639) (39,500)
3,146,000 534,000 (333,000) 2,379,718 1,645,541
24,536,000 27,682,000 28,216,000 27,883,000 30,262,718
$ 27,682,000 $ 28,216,000 $ 27,883,000 $ 30,262,718 $ 31,908,259
$ (5,339,000) $ (4,251,000) $ 218,000 $ (471,385) $ (3,469,467)
Plan Fiduciary Net Position as a Percentage of the Total Pension
Liability 123.90% 117.74% 99.22% 101.58% 112.20%
Covered Payroll $ 24,363,588 $ 22,739,613 $ 21,593,214 $ 19,909,987 $ 18,246,690
Plan Net Pension Liability/(Asset) as a Percentage of Covered
Payroll-21.91%-18.69% 1.01% -2.37%-19.01%
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore
only five 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: The discount rate was updated from 5.75% to 6.00%, the demographic assumptions were updated to CalPERS 1997-2015
Experience Study, and the mortality improvement scale was updated to Society of Actuaries Scale
116
CITY OF RANCHO CUCAMONGA
PARS RETIREMENT ENHANCEMENT PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll (2)
2015 2016 2017 2018 2019
$ 467,000 $ 307,590 $ 278,740 $ 657,424 $ 628,911
(467,000) (307,590) (278,740) (657,424) (628,911)
$22,739,613 $21,593,214 $19,909,987 $ 18,246,690 $ 16,119,382
2.05% 1.42% 1.40% 3.60% 3.90%
(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 five 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, 2018
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Aggregate Cost
Amortization method
Level -dollar
Amortization period
11-year fixed period
Assets valuation method
Actuarial value of assets
Discount rate
6.00%
Inflation
2.75%
Salary Increases
4.5% average, including inflation of 3.0%
Investment rate of return
6.00% net of pension investment and
administrative expenses, including inflation.
Retirement age
CaIPERS 1997-2015 Experience Study
Mortality
CaIPERS 1997-2015 Experience Study
117
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)
Total OPEB Liability
Service cost
Interest on the total OPEB liability
Actual and expected experience difference
Changes in assumptions
Changes in benefit terms
Benefit payments
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending (a)
Plan Fiduciary Net Position
Contribution - employer
Net investment income
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net OPEB Liability/(Assets) - ending (a) - (b)
Plan fiduciary net position as a percentage of the total OPEB liability
Covered -employee payroll
Net OPEB liability as a percentage of covered -employee payroll
2018 2019
$
400,000
$
412,316
1,516,000
1,562, 020
(1,046,000)
(1,143,902)
870,000
830,434
27,688,000
28,558,000
$
28,558,000
$
29,388,434
$
281,000
$
998,969
1,429,000
1,339,488
(1,046,000)
(1,143,902)
(14,000)
(52,080)
650,000
1,142,475
27,617,000
28,267,000
$
28,267,000
$
29,409,475
$
291,000
$
(21,041)
98.98% 100.07%
$ 15,842,421 $ 16,635,534
1.84% -0.13%
(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: None
Changes in assumptions: None
118
CITY OF RANCHO CUCAMONGA
SCHEDULE OF CONTRIBUTIONS - OPEB
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2019
Actuarially Determined Contribution $ 998,969 $ 469,195
Contribution in Relation to the Actuarially Determined Contributions (998,969) (469,195)
Contribution Deficiency (Excess) $ - $
Covered -employee payroll $ 16,635,534 $ 16,440,813
Contributions as a percentage of covered -employee payroll 6.01% 2.85%
(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.
Methods and assumptions used to determine contributions:
Valuation Date June 30, 2017
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 5.50%
General Inflation 3.00%
Payroll Growth 3% per annum, in aggregate
Mortality, Disability, Termination, Retirement CalPERS 1997-2011 Experience Study
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
119
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 receipts and disbursements of the state gas tax allocations
to fund road construction and maintenance of the City network system.
Recreation Fund - Established to account for the receipts and disbursements for community classes,
special events, and activities that are sponsored by the Community Services Department, as well as,
state and local grants which provide funding for related community services or facilities.
Beautification Fund - Established to account for receipts from development projects to provide proper
landscaping and irrigation systems after the construction of parkway and median improvements.
Landscape Maintenance Fund - Established to account for receipts of special assessments which are
restricted for providing landscape maintenance within specified geographical boundaries.
Pedestrian Grant Fund - Established to account for the receipts and disbursements of county entitlement
funds for the construction of public facilities for the exclusive use of pedestrians and bicycles.
Community Development Block Grant Fund - Established to account for Federal grant funding from the
Department of Housing and Urban Development under the Housing and Community Development Act
of 1974, as amended.
Assessment Administration Fund - Established to account for the administration of the various special
districts within the City.
SB 140 Fund - Established to account for the receipt and disbursement of state matching funds that are
restricted for the construction of eligible street construction projects.
Air Quality Improvement Fund - Established to account for the receipt and disbursement of funds received
from the South Coast Air Quality Management District as a result of Assembly Bill 2766.
Masi Commerce Center 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 receipts and disbursements of the City's allocation of the
half -cent sales tax collected throughout San Bernardino County for local street construction and
maintenance.
Library Services Fund - Established to account for the receipts and disbursements for library -related
services provided by the City of Rancho Cucamonga Library. Funding for this service is made possible
through a transfer of San Bernardino County library property tax revenues to the City of Rancho
Cucamonga for library purposes.
120
CITY OF RANCHO CUCAMONGA
Non -Major Governmental Funds
Special Revenue Funds (Continued)
Public Safety Grants Fund - Established to account for the receipts and disbursements of miscellaneous
state, local, and Federal grant monies. These receipts are restricted for law enforcement and public
safety -related expenditures.
Used Oil Recycling Fund - Established to account for the receipts and disbursements of the state grant
monies for the purpose of establishing and administering used oil collection programs. These receipts
are restricted for oil recycling collection and educational programs.
Library Services Grants Fund - Established to account for the receipts and disbursements of
miscellaneous state, local, and Federal grant monies not accounted for in other funds. These receipts
are restricted for library -related expenditures.
AB 2928 Traffic Congestion Relief Fund - Established fund to account for the receipts and disbursements
of funds received as a result of Assembly Bill 2928. These receipts are restricted for transportation
projects that relieve congestion, connect transportation systems, and provide better goods movement.
Litter Reduction Grant Fund - Established to account for the receipts and disbursements of the state grant
monies that are used for the collection and recycling of beverage containers at large venues, public
areas, residential communities or schools.
Energy Efficiency and Conservation Block Grant (EECBG) Fund - Established to account for the receipts
and disbursements of Federal grant monies received through the U.S. Department of Energy under the
EECBG program. The receipts are restricted for funding projects that reduce energy consumption and
promote energy efficiency.
SAFETEA-LU Grant Fund - Established to account for the receipts and disbursements of Federal grant
monies received from the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for
Users (SAFETEA-LU) from the Department of Transportation. The receipts are restricted for funding
highways, highway safety, and public transportation projects.
Underground Utilities Fund - Established to account for fees collected from developments for future
undergrounding of overhead utilities.
Safe Routes to School Program Fund - Established to account for the receipts and disbursements of
Federal grant monies passed -through the State of California. These receipts are restricted for
transportation projects that increase the safety of pedestrians and bicyclists.
Citywide Infrastructure Improvement Fund - Established to account for capital improvement project
reimbursements, primarily from the San Bernardino County Transportation Authority, to provide funds that
will be used for general infrastructure throughout the City.
Proposition 1 B Fund — Established to account for the receipts and disbursements of Proposition 1 B and
Proposition 1 B State -Local Partnership Program (SLPP) funds which provide for the maintenance and
improvement of local transportation facilities. This fund is allocated to the City by the California
Transportation Commission.
Public Resource Grants Fund - Established to account for the receipts from various sources for the
Healthy Cities concept, which provides an integrated and holistic approach to improving the overall quality
of life in the community.
121
CITY OF RANCHO CUCAMONGA
Non -Major Governmental Funds
Special Revenue Funds (Continued)
Integrated Waste Management Fund - Established to account for receipts from Assembly Bill 939 which
are generated from refuse haulers. These receipts are restricted for providing funding for the disposal of
household hazardous waste.
SB1 - TCEP Fund — Established to account for the receipts and disbursements of SB 1 Trade Corridor
Enhancement Program (TCEP) funds which provide for the design and construction of the Etiwanda
Grade Separation Project.
Capital Projects Funds
Capital Projects Fund - Established to account for major capital improvement projects not accounted for
in other funds.
122
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123
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
Special Revenue Funds
Landscape
Maintenance
Gas Tax
Recreation
Beautification
Districts
Assets:
Cash and investments
$
10,615,093
$
3,446,206
$
1,084,343
$
20,508,112
Receivables:
Accounts
306,044
540,457
-
51,967
Taxes
-
-
-
73,963
Accrued interest
34,866
12,018
3,880
66,316
Other loans
-
-
-
-
Grants
-
-
Prepaid costs
361
38,182
-
Deposits
-
12,231
Due from other funds
3,586
-
Restricted assets:
Cash and investments with fiscal agents
-
-
-
-
Total Assets
$
10,959,950
$
4,049,094
$
1,088,223
$
20,700,358
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$
94,722
$
464,173
$
119,171
$
703,600
Accrued liabilities
59,756
128,726
-
101,846
Unearned revenues
-
681,321
-
Deposits payable
-
20,852
Due to other governments
-
-
Due to other funds
-
-
-
-
Total Liabilities
154,478
1,295,072
119,171
805,446
Deferred Inflows of Resources:
Unavailable revenues
-
666
-
-
Total Deferred Inflows of Resources
666
Fund Balances:
Nonspendable:
Prepaid costs
361
38,682
-
Deposits
-
12,231
Restricted for:
Community development projects
-
-
Public safety - police
-
-
Parks and recreation
-
2,702,443
-
Engineering and public works
10,805,111
-
969,052
Capital improvement projects
-
-
Underground utilities
-
-
Landscape maintenance
-
19,894,912
Library services
-
-
Unassigned
-
-
-
-
Total Fund Balances
10,805,472
2,753,356
969,052
19,894,912
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$
10,959,950
$
4,049,094
$
1,088,223
$
20,700,358
124
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019 (CONTINUED)
Special Revenue Funds
Community
Pedestrian
Development
Assessment
Grant
Block Grant
Administration
SB 140
Assets:
Cash and investments
$
-
$ 184,735
$ 554,536
$
36,736
Receivables:
Accounts
36,838
-
-
-
Taxes
-
-
-
Accrued interest
-
3,282
-
Other loans
1,305,517
-
-
Grants
777,549
-
-
Prepaid costs
-
-
-
Deposits
-
-
Due from other funds
-
-
Restricted assets:
Cash and investments with fiscal agents
-
-
-
-
Total Assets
$
36,838
$ 2,267,801
$ 557,818
$
36,736
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$
-
$ 265,807
$ 3,131
$
-
Accrued liabilities
-
8,810
7,575
-
Unearned revenues
-
-
-
-
Deposits payable
-
-
-
-
Due to other governments
-
551,404
-
-
Due to other funds
36,838
-
-
-
Total Liabilities
36,838
826,021
10,706
-
Deferred Inflows of Resources:
Unavailable revenues
-
169,713
-
-
Total Deferred Inflows of Resources
-
169,713
-
-
Fund Balances:
Nonspendable:
Prepaid costs
-
-
-
Deposits
-
-
-
-
Restricted for:
Community development projects
-
1,272,067
547,112
-
Public safety - police
-
-
-
-
Parks and recreation
-
-
-
Engineering and public works
-
-
36,736
Capital improvement projects
-
-
-
Underground utilities
-
-
-
Landscape maintenance
-
-
-
Library services
-
-
-
Unassigned
-
-
-
-
Total Fund Balances
-
1,272,067
547,112
36,736
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$
36,838
$ 2,267,801
$ 557,818
$
36,736
125
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
Special Revenue Funds
Masi
Air Quality
Commerce
Library
Improvement
Center
Measure I
Services
Assets:
Cash and investments
$
701,901
$
11,105
$
4,248,197
$
7,799,247
Receivables:
Accounts
59,408
-
393,982
35,803
Taxes
-
-
567,840
33,311
Accrued interest
3,485
39
15,319
25,310
Other loans
-
-
-
-
Grants
-
-
Prepaid costs
-
2,173
Deposits
-
-
Due from other funds
-
-
2,685
Restricted assets:
Cash and investments with fiscal agents
-
297,848
-
-
Total Assets
$
764,794
$
308,992
$
5,225,338
$
7,898,529
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$
74,604
$
-
$
486,412
$
229,789
Accrued liabilities
-
12,182
134,176
Unearned revenues
-
-
Deposits payable
15
Due to other governments
-
Due to other funds
-
-
-
Total Liabilities
74,604
498,594
363,980
Deferred Inflows of Resources:
Unavailable revenues
-
258,976
-
Total Deferred Inflows of Resources
258,976
Fund Balances:
Nonspendable:
Prepaid costs
2,173
Deposits
-
-
Restricted for:
Community development projects
690,190
-
-
Public safety - police
-
-
Parks and recreation
-
-
Engineering and public works
4,467,768
-
Capital improvement projects
308,992
-
822,572
Underground utilities
-
-
-
Landscape maintenance
-
-
Library services
-
6,709,804
Unassigned
-
-
-
-
Total Fund Balances
690,190
308,992
4,467,768
7,534,549
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$
764,794
$
308,992
$
5,225,338
$
7,898,529
126
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019 (CONTINUED)
Special Revenue Funds
AB 2928
Library
Traffic
Public Safety
Used Oil
Services
Congestion
Grants
Recycling
Grants
Relief
Assets:
Cash and investments
$
779,966
$
45,434
$
437,884
$ 294,461
Receivables:
Accounts
-
-
-
-
Taxes
-
-
-
-
Accrued interest
270
87
907
-
Other loans
-
-
-
-
Grants
-
-
-
-
Prepaid costs
500
-
-
-
Deposits
-
-
-
24
Due from other funds
-
-
-
-
Restricted assets:
Cash and investments with fiscal agents
-
-
-
-
Total Assets
$
780,736
$
45,521
$
438,791
$ 294,485
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$
-
$
-
$
1,186
$ -
Accrued liabilities
-
1,931
-
-
Unearned revenues
57,130
-
14,743
-
Deposits payable
-
-
-
-
Due to other governments
-
-
-
-
Due to other funds
-
-
-
-
Total Liabilities
57,130
1,931
15,929
-
Deferred Inflows of Resources:
Unavailable revenues
-
-
-
-
Total Deferred Inflows of Resources
-
-
-
-
Fund Balances:
Nonspendable:
Prepaid costs
-
-
-
-
Deposits
-
-
-
24
Restricted for:
Community development projects
-
-
-
-
Public safety - police
723,606
-
-
-
Parks and recreation
-
-
-
-
Engineering and public works
-
43,590
-
294,461
Capital improvement projects
-
-
-
-
Underground utilities
-
-
-
-
Landscape maintenance
-
-
-
-
Library services
-
-
422,862
-
Unassigned
-
-
-
-
Total Fund Balances
723,606
43,590
422,862
294,485
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$
780,736
$
45,521
$
438,791
$ 294,485
127
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
Special Revenue Funds
Energy
Litter
Efficiency and
Reduction
Conservation
SAFETEA-LU
Underground
Grant
Block Grant
Grant
Utilities
Assets:
Cash and investments
$
53,217
$ 404
$
11,587
$
11,022,858
Receivables:
Accounts
-
-
-
-
Taxes
-
-
-
-
Accrued interest
-
-
78
38,997
Other loans
-
237,669
-
-
Grants
-
-
-
-
Prepaid costs
-
-
-
-
Deposits
-
-
-
-
Due from other funds
-
-
-
4,673
Restricted assets:
Cash and investments with fiscal agents
-
-
-
-
Total Assets
$
53,217
$ 238,073
$
11,665
$
11,066,528
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$
93
$ -
$
-
$
104,331
Accrued liabilities
82
500
-
-
Unearned revenues
-
-
11,665
-
Deposits payable
-
-
-
-
Due to other governments
-
237,669
-
-
Due to other funds
-
-
-
-
Total Liabilities
175
238,169
11,665
104,331
Deferred Inflows of Resources:
Unavailable revenues
-
-
-
-
Total Deferred Inflows of Resources
-
-
-
-
Fund Balances:
Nonspendable:
Prepaid costs
-
-
-
-
Deposits
-
-
-
-
Restricted for:
Community development projects
53,042
-
-
-
Public safety - police
-
-
-
-
Parks and recreation
-
-
-
-
Engineering and public works
-
-
-
-
Capital improvement projects
-
-
-
-
Underground utilities
-
-
-
10,962,197
Landscape maintenance
-
-
-
-
Library services
-
-
-
-
Unassigned
-
(96)
-
-
Total Fund Balances
53,042
(96)
-
10,962,197
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$
53,217
$ 238,073
$
11,665
$
11,066,528
128
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019 (CONTINUED)
Special Revenue Funds
Safe Routes
Citywide
Public
to School
Infrastructure
Proposition
Resource
Program
Improvement
1B
Grants
Assets:
Cash and investments
$
$
24,208,427
$ 253,971
$
5,081
Receivables:
Accounts
198,515
-
5,700
Taxes
-
-
-
Accrued interest
85,649
898
Other loans
-
-
-
Grants
12,346
Prepaid costs
-
-
Deposits
-
-
-
Due from other funds
-
10,264
-
Restricted assets:
Cash and investments with fiscal agents
-
-
-
-
Total Assets
$ 12,346
$
24,502,855
$ 254,869
$
10,781
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$ -
$
9,930
$
$
Accrued liabilities
1,291
107
Unearned revenues
-
-
Deposits payable
-
Due to other governments
-
Due to other funds
10,623
-
Total Liabilities
11,914
10,037
Deferred Inflows of Resources:
Unavailable revenues
-
-
-
Total Deferred Inflows of Resources
-
Fund Balances:
Nonspendable:
Prepaid costs
-
Deposits
-
Restricted for:
Community development projects
-
10,781
Public safety - police
432
-
Parks and recreation
-
-
Engineering and public works
-
-
254,869
Capital improvement projects
-
24,492,818
-
-
Underground utilities
-
-
-
Landscape maintenance
-
-
Library services
-
-
Unassigned
-
-
-
-
Total Fund Balances
432
24,492,818
254,869
10,781
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 12,346
$
24,502,855
$ 254,869
$
10,781
129
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
Capital
Special Revenue Funds
Projects Fund
Integrated
Total Nonmajor
Waste
Capital
Governmental
Management SB1 - TCEP
Projects Fund
Funds
Assets:
Cash and investments
$ 3,589,630 $ -
$ 4,843,498
$ 94,736,629
Receivables:
Accounts
23,759 1,386,985
-
3,039,458
Taxes
320,447 -
-
995,561
Accrued interest
13,311
17,306
322,018
Other loans
-
-
1,543,186
Grants
- -
-
789,895
Prepaid costs
- -
-
41,216
Deposits
- -
-
12,255
Due from other funds
- -
-
21,208
Restricted assets:
Cash and investments with fiscal agents
- -
407,925
705,773
Total Assets
$ 3,947,147 $ 1,386,985
$ 5,268,729
$ 102,207,199
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$ 9,743
$ 595,133
$ 2,577,424
$ 5,739,249
Accrued liabilities
37,587
-
-
494,569
Unearned revenues
-
-
-
764,859
Deposits payable
-
-
-
20,867
Due to other governments
-
-
-
789,073
Due to other funds
-
791,852
-
839,313
Total Liabilities
47,330
1,386,985
2,577,424
8,647,930
Deferred Inflows of Resources:
Unavailable revenues
-
-
-
429,355
Total Deferred Inflows of Resources
-
-
429,355
Fund Balances:
Nonspendable:
Prepaid costs
-
-
41,216
Deposits
-
-
12,255
Restricted for:
Community development projects
-
-
2,573,192
Public safety - police
-
-
724,038
Parks and recreation
-
-
2,702,443
Engineering and public works
3,899,817
-
-
20,771,404
Capital improvement projects
-
2,691,305
28,315,687
Underground utilities
-
-
10,962,197
Landscape maintenance
-
-
19,894,912
Library services
-
-
7,132,666
Unassigned
-
-
(96)
Total Fund Balances
3,899,817
-
2,691,305
93,129,914
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 3,947,147
$ 1,386,985
$ 5,268,729
$ 102,207,199
130
THIS PAGE INTENTIONALLY LEFT BLANK
131
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
Revenue Funds
Landscape
Maintenance
Gas Tax
Recreation
Beautification
Districts
Revenues:
Taxes
$ -
$ -
$ -
$ 10,939,578
Licenses and permits
-
-
-
217,512
Intergovernmental
6,576,705
2,148
-
-
Charges for services
-
2,899,676
-
26,506
Use of money and property
342,342
1,317,071
36,226
738,979
Contributions
-
197,878
-
30,000
Developer participation
-
-
10,963
-
Miscellaneous
-
222,367
93,407
2,217
Total Revenues
6,919,047
4,639,140
140,596
11,954,792
Expenditures:
Current:
General government
-
-
-
-
Public safety - police
-
-
-
-
Public safety - fire protection
-
-
-
-
Community development
-
-
-
9,870,528
Community services
-
4,524,302
-
-
Engineering and public works
3,401,807
-
270
1,990
Capital outlay
2,015,173
28,860
126,195
178,738
Total Expenditures
5,416,980
4,553,162
126,465
10,051,256
Excess (Deficiency) of Revenues
Over (Under) Expenditures
1,502,067
85,978
14,131
1,903,536
Other Financing Sources (Uses):
Transfers in
-
-
-
537,340
Transfers out
-
-
-
-
Total Other Financing Sources
(Uses)
-
-
-
537,340
Net Change in Fund Balances
1,502,067
85,978
14,131
2,440,876
Fund Balances, Beginning of Year
9,303,405
2,667,378
954,921
17,454,036
Fund Balances, End of Year
$ 10,805,472
$ 2,753,356
$ 969,052
$ 19,894,912
132
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019 (CONTINUED)
Revenue Funds
Community
Pedestrian Development Assessment
Revenues:
Taxes
$ -
$ -
$ - $
-
Licenses and permits
-
-
-
-
Intergovernmental
36,838
1,312,471
-
-
Charges for services
-
-
-
-
Use of money and property
-
5,492
29,654
576
Contributions
-
-
-
-
Developer participation
-
-
-
-
Miscellaneous
-
45,101
879,833
-
Total Revenues
36,838
1,363,064
909,487
576
Expenditures:
Current:
General government
-
-
894,850
-
Public safety - police
-
-
-
-
Public safety - fire protection
-
-
-
-
Community development
-
1,235,223
-
-
Community services
-
-
-
-
Engineering and public works
-
-
-
-
Capital outlay
36,838
-
-
-
Total Expenditures
36,838
1,235,223
894,850
-
Excess (Deficiency) of Revenues
Over (Under) Expenditures
-
127,841
14,637
576
Other Financing Sources (Uses):
Transfers in
-
-
-
-
Transfers out
-
-
(275,520)
-
Total Other Financing Sources
(Uses)
-
-
(275,520)
-
Net Change in Fund Balances
-
127,841
(260,883)
576
Fund Balances, Beginning of Year
-
1,144,226
807,995
36,160
Fund Balances, End of Year
$ -
$ 1,272,067
$ 547,112 $
36,736
133
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
Revenue Funds
Masi
Air Quality
Commerce
Library
Improvement
Center
Measure I
Services
Revenues:
Taxes
$ -
$ -
$ -
$ 4,582,638
Licenses and permits
-
-
-
-
Intergovernmental
556,075
-
3,072,750
65,403
Charges for services
-
-
-
227,036
Use of money and property
36,582
5,447
139,888
265,214
Contributions
-
-
-
161,256
Developer participation
-
-
-
-
Miscellaneous
-
-
124,040
75,834
Total Revenues
592,657
5,447
3,336,678
5,377,381
Expenditures:
Current:
General government
17,067
220
-
-
Public safety - police
-
-
-
-
Public safety - fire protection
-
-
-
-
Community development
-
-
-
-
Community services
-
-
-
4,570,010
Engineering and public works
-
-
2,339,819
-
Capital outlay
1,206,165
-
920,652
-
Total Expenditures
1,223,232
220
3,260,471
4,570,010
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(630,575)
5,227
76,207
807,371
Other Financing Sources (Uses):
Transfers in
-
-
-
11,428
Transfers out
-
-
-
-
Total Other Financing Sources
(Uses)
-
-
-
11,428
Net Change in Fund Balances
(630,575)
5,227
76,207
818,799
Fund Balances, Beginning of Year
1,320,765
303,765
4,391,561
6,715,750
Fund Balances, End of Year
$ 690,190
$ 308,992
$ 4,467,768
$ 7,534,549
134
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019 (CONTINUED)
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Engineering and public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Special Revenue Funds
AB 2928
Library
Traffic
Public Safety
Used Oil
Services
Congestion
Grants
Recycling
Grants
Relief
498,852
89,459
374,548
14,257
1,225
12,135
4,974
513,109 90,684 386,683 4,974
302,684 -
57,851 -
- 51,159 -
- - 35,640 -
- - 70
26,488 - - -
387,023 51,159 35,640 70
126,086 39,525 351,043 4,904
2,110
- (11,428)
2,110 - (11,428) -
128,196 39,525 339,615 4,904
595,410 4,065 83,247 289,581
$ 723,606 $ 43,590 $ 422,862 $ 294,485
135
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety - police
Public safety - fire protection
Community development
Community services
Engineering and public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Special Revenue Funds
Energy
Litter Efficiency and
Reduction Conservation SAFETEA-LU Underground
103,907 - 5,214 -
- - - 145,323
378 - 543 384,677
104,285
51,243
51,243
53,042
5,757 530,000
- 150 18,091
- 5,607 184,753
5,757 202,844
- 327,156
53,042 - - 327,156
- (96) - 10,635,041
$ 53,042 $ (96) $ - $ 10,962,197
136
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019 (CONTINUED)
Special Revenue Funds
Safe Routes
Citywide
Public
to School
Infrastructure
Proposition
Resource
Program
Improvement
1 B
Grants
Revenues:
Taxes
$ -
$ -
$ -
$ -
Licenses and permits
-
-
-
-
Intergovernmental
38,062
873,782
-
33,490
Charges for services
-
-
-
-
Use of money and property
-
858,448
8,420
3
Contributions
-
-
-
600
Developer participation
-
188,292
-
-
Miscellaneous
-
1,565
-
-
Total Revenues
38,062
1,922,087
8,420
34,093
Expenditures:
Current:
General government
-
-
-
8,959
Public safety - police
-
-
-
-
Public safety - fire protection
-
-
-
-
Community development
-
-
60
-
Community services
-
-
-
-
Engineering and public works
28,047
579,009
-
-
Capital outlay
-
888,887
-
-
Total Expenditures
28,047
1,467,896
60
8,959
Excess (Deficiency) of Revenues
Over (Under) Expenditures
10,015
454,191
8,360
25,134
Other Financing Sources (Uses):
Transfers in
65,000
-
-
-
Transfers out
-
-
-
-
Total Other Financing Sources
(Uses)
65,000
-
-
-
Net Change in Fund Balances
75,015
454,191
8,360
25,134
Fund Balances, Beginning of Year
(74,583)
24,038,627
246,509
(14,353)
Fund Balances, End of Year
$ 432
$ 24,492,818
$ 254,869
$ 10,781
137
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
Capital
Special Revenue Funds
Projects Fund
Total
Integrated
Nonmajor
Waste
Capital
Governmental
Management SB1 - TCEP
Projects Fund
Funds
Revenues:
Taxes
$ 1,343,238 $ -
$ -
$ 16,865,454
Licenses and permits
26,354 -
-
243,866
Intergovernmental
- 1,386,985
26,048
15,052,737
Charges for services
- -
-
3,298,541
Use of money and property
118,878 -
180,546
4,501,955
Contributions
- -
-
389,734
Developer participation
- -
-
199,255
Miscellaneous
57,159 -
-
1,501,523
Total Revenues
1,545,629 1,386,985
206,594
42,053,065
Expenditures:
Current:
General government
- -
280
921,376
Public safety - police
- -
-
302,684
Public safety - fire protection
- -
-
57,851
Community development
- -
290
11,157,260
Community services
- -
-
9,129,952
Engineering and public works
1,268,169 -
-
7,688,665
Capital outlay
- 1,386,985
-
7,005,341
Total Expenditures
1,268,169 1,386,985
570
36,263,129
Excess (Deficiency) of Revenues
Over (Under) Expenditures
277,460 -
206,024
5,789,936
Other Financing Sources (Uses):
Transfers in
- -
-
615,878
Transfers out
(188,420) -
-
(475,368)
Total Other Financing Sources
(Uses)
(188,420) -
-
140,510
Net Change in Fund Balances
89,040 -
206,024
5,930,446
Fund Balances, Beginning of Year
3,810,777 -
2,485,281
87,199,468
Fund Balances, End of Year
$ 3,899,817 $ -
$ 2,691,305
$ 93,129,914
138
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
GAS TAX
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Engineering and public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 9,303,405
$ 9,303,405
$ 9,303,405
$ -
6,779,020
6,537,940
6,576,705
38,765
127,300
217,650
342,342
124,692
16,209,725
16,058,995
16, 222, 452
163,457
2,524,720
3,634,830
3,441,807
193,023
2,677,000
3,502,210
3,114,675
387,535
5,201,720
7,137,040
6,556,482
580,558
$ 11,008,005
$ 8,921,955
9,665,970
$ 744,015
1,139,502
$ 10,805,472
139
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
RECREATION
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Charges for services
Use of money and property
Contributions
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Parks and recreation
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 2,667,378
$ 2,667,378
$ 2,667,378
$ -
-
-
2,148
2,148
3,004,410
2,699,500
2,899,676
200,176
1,131,360
1,179,000
1,317,071
138,071
253,690
243,680
197,878
(45,802)
259,130
236,430
222,367
(14,063)
7,315,968
7,025,988
7,306,518
280,530
5,123,580
4,692,480
4,536,251
156,229
-
155,740
28,860
126,880
5,123,580
4,848,220
4,565,111
283,109
$2,192,388
$ 2,177,768
2,741,407
$ 563,639
11,949
$ 2,753,356
140
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
BEAUTIFICATION
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer participation
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Engineering and public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 954,921
$ 954,921
$ 954,921
$ -
12,000
19,310
36,226
16,916
-
10,970
10,963
(7)
-
-
93,407
93,407
966,921
985,201
1,095,517
110,316
270
270
270
-
537,000
349,490
347,089
2,401
537,270
349,760
347,359
2,401
$ 429,651 $ 635,441 748,158 $ 112,717
29n RA4
Budgetary Fund Balance, June 30 (GAAP Basis) $ 969,052
141
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
LANDSCASPE MAINTENANCE DISTRICTS
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Licenses and permits
Charges for services
Use of money and property
Contributions
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Community development
Engineering and public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 17,454,036 $ 17,454,036 $17,454,036 $ -
10, 923, 350
10, 923, 350
10, 939, 578
16,228
240,000
240,000
217,512
(22,488)
54,720
54,720
26,506
(28,214)
277,880
354,620
738,979
384,359
30,000
30,000
30,000
-
3,940
3,940
2,217
(1,723)
495,730
537,340
537,340
-
29,479,656
29,598,006
29,946,168
348,162
590,990
452,670
-
452,670
11,789,530
11,859,330
10,067,714
1,791,616
1,990
1,990
1,990
-
1,115,000
396,910
335,030
61,880
13,497,510
12,710,900
10,404,734
2,306,166
$ 15,982,146 $ 16,887,106
19,541,434 $ 2,654,328
353,478
$19,894,912
142
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
PEDESTRIAN GRANT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
43,000
43,000
36,838
(6,162)
43,000
43,000
36,838
(6,162)
43,000
43,000
36,838
6,162
43,000 43,000 36,838 6,162
143
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Community development
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 1,144,226
$ 1,144,226
$ 1,144,226
$ -
1,780,140
1,255,740
1,312,471
56,731
-
-
5,492
5,492
350,000
150,000
45,101
(104,899)
3,274,366
2,549,966
2,507,290
(42,676)
1,671,740
1,255,740
1,235,223
20,517
1,671,740
1,255,740
1,235,223
20,517
$ 1,602,626
$ 1,294,226
1,272,067
$ (22,159)
$ 1,272,067
144
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
ASSESSMENT ADMINISTRATION
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 807,995 $ 807,995 $ 807,995 $ -
10,270 13,570 29,654 16,084
879,240 879,750 879,833 83
1,697,505 1,701, 315 1,717,482 16,167
926,100 1,009,760 896,050 113,710
- 275,520 275,520 -
926,100 1,285,280 1,171,570 113,710
$ 771,405 $ 416,035 545,912 $ 129,877
1,200
$ 547,112
145
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$1,320,765 $ 1,320,765 $ 1,320,765 $
837,150 551,420 556,075 4,655
19,600 19,530 36,582 17,052
2,177,515 1,891,715 1,913,422 21,707
21,840 17,400 17,067 333
631,160 1,293,480 1,270,624 22,856
653,000 1,310,880 1,287,691 23,189
$1,524,515 $ 580,835 625,731 $ 44,896
64,459
$ 690,190
146
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
MASI COMMERCE CENTER
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 303,765 $ 303,765 $ 303,765 $ -
170 200 5,447 5,247
303,935 303,965 309,212 5,247
220 220
220 220
$ 303,715 $ 303,745
220 -
220 -
308,992 $ 5,247
$ 308,992
147
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
MEASUREI
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Engineering and public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$4,391,561
$ 4,391,561
$ 4,391,561
$ -
3,128,210
2,816,040
3,072,750
256,710
61,410
73,000
139,888
66,888
-
-
124,040
124,040
7,581,181
7,280,601
7,728,239
447,638
1,585,630
2,502,890
2,347,253
155,637
1,610,000
3,395,800
3,314,842
80,958
3,195,630
5,898,690
5,662,095
236,595
$4,385,551 $ 1,381,911 2,066,144 $ 684,233
7 An1 A9A
Budgetary Fund Balance, June 30 (GAAP Basis) $ 4,467,768
148
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
LIBRARY SERVICES
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Intergovernmental
Charges for services
Use of money and property
Contributions
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Community services
Capital outlay
Debt service:
Principal retirement
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Budget Amounts
Original Final
$ 6,715,750 $ 6,715,750
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 6,715,750 $ -
4,440,520
4,713,240
4,582,638
(130,602)
25,000
22,970
65,403
42,433
218,600
195,100
227,036
31,936
84,620
117,400
265,214
147,814
202,000
197,000
161,256
(35,744)
166,070
151,540
75,834
(75,706)
-
11,430
11,428
(2)
11,852,560
12,124,430
12,104,559
(19,871)
5,030,450
4,865,010
4,621,254
243,756
98,000
165,000
23,275
141,725
1,790 - -
5,130,240 5,030,010 4,644,529 385,481
$ 6,722,320 $ 7,094,420 7,460,030 $ 365,610
74,519
$ 7,534,549
149
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
PUBLIC SAFETY GRANTS
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public safety - police
Public safety - fire protection
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 595,410
$ 595,410
$ 595,410
$ -
289,560
450,840
498,852
48,012
1,310
1,410
14,257
12,847
-
2,110
2,110
-
886,280
1,049,770
1,110,629
60,859
327,410
346,080
333,164
12,916
27,030
91,200
57,851
33,349
21,390
26,490
26,488
2
375,830
463,770
417,503
46,267
$ 510,450
$ 586,000
693,126
$ 107,126
30,480
$ 723,606
150
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
USED OIL RECYCLING
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Community development
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 4,065
$ 4,065
$ 4,065
$ -
47,000
48,830
89,459
40,629
530
600
1,225
625
51,595
53,495
94,749
41,254
43,210
51,960
51,159
801
43,210
51,960
51,159
801
$ 8,385
$ 1,535
43,590
$ 42,055
ZO 4s,aaU
151
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
LIBRARY SERVICES GRANTS
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Community services
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 83,247
$ 83,247
$ 83,247
$ -
30,000
48,010
374,548
326,538
3,840
4,570
12,135
7,565
117,087
135,827
469,930
334,103
23,730
39,910
35,640
4,270
-
11,430
11,428
2
23,730
51,340
47,068
4,272
$ 93,357
$ 84,487
422,862
$ 338,375
$ 422,862
152
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
AB 2928 TRAFFIC CONGESTION RELIEF
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Engineering and public works
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 289,581 $ 289,581 $ 289,581 $ -
- - 4,974 4,974
289,581 289,581 294,555 4,974
$ 289,511 $ 289,511
294,485 $ 4,974
$ 294,485
153
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
LITTER REDUCTION GRANT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1 as restated
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Engineering and public works
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
70,840 58,240 103,907 45,667
- - 378 378
70,840 58,240 104,285 46,045
53,042 $ 53,042
$ 53,042
154
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
SAFETEA-LU GRANT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
600,000
600,000
5,214
(594,786)
480
510
543
33
600,480
600,510
5,757
(594,753)
150
150
150
-
600,000
600,000
5,607
594,393
600,150
600,150
5,757
594,393
$ 330
$ 360
-
$ (360)
Budgetary Fund Balance, June 30 (GAAP Basis) $ -
155
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
UNDERGROUND UTILITIES
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Charges for services
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Engineering and public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$10,635,041
$10,635,041
$10,635,041
$ -
90,000
90,000
145,323
55,323
167,740
193,600
384,677
191,077
10,892, 781
10,918,641
11,165,041
246,400
3,180
18,100
18,091
9
75,000
214,420
184,753
29,667
78,180
232,520
202,844
29,676
$10,814,601
$10,686,121
10,962,197
$ 276,076
$10,962,197
156
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
SAFE ROUTES TO SCHOOL PROGRAM
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ (74,583) $ (74,583) $ (74,583) $ -
145,610 42,740 38,062 (4,678)
- 65,000 65,000 -
71,027 33,157 28,479 (4,678)
54,810 33,150 28,047 5,103
90,800 - - -
145,610 33,150 28,047 5,103
$ (74,583) $ 7
432 $ 425
$ 432
157
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
CITYWIDE INFRASTRUCTURE IMPROVEMENT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Engineering and public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$24,038,627
$24,038,627
$24,038,627
$
1,250,000
1,250,000
873,782
(376,218)
378,480
424,950
858,448
433,498
2,000
1,000
188,292
187,292
-
-
1,565
1,565
25,669,107
25,714,577
25,960,714
246,137
71,470
581,970
580,157
1,813
3,641,820
4,517,470
952,223
3,565,247
3,713,290
5,099,440
1,532,380
3,567,060
$ 21,955,817 $20,615,137
24,428,334 $ 3,813,197
64,484
$ 24,492,818
158
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
PROPOSITION 1 B
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Community development
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Budget Amounts
Original Final
$ 246,509 $ 246,509
19,920 19,920
3,780 4,500
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 246,509 $
- (19,920)
8,420 3,920
270,209
270,929
254,929
(16,000)
60
60
60
-
19,920
19,920
-
19,920
19,980
19,980
60
19,920
$ 250,229
$ 250,949
254,869
$ 3,920
ZO La4,uba
159
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
PUBLIC RESOURCES GRANTS
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Contributions
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ (14,353) $ (14,353) $ (14,353) $
9,730
34,730
33,490
(1,240)
-
-
3
3
9,510
9,510
600
(8,910)
360
360
-
(360)
5,247
30,247
19,740
(10,507)
9,730
34,730
33,959
771
9,730
34,730
33,959
771
$ (4,483) $
(4,483)
(14,219) $
(9,736)
25,000
$ 10,781
160
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
INTEGRATED WASTE MANAGEMENT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Licenses and permits
Use of money and property
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Engineering and public works
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 3,810,777
$ 3,810,777
$ 3,810,777
$ -
1,296,330
1,305,150
1,343,238
38,088
34,000
40,700
26,354
(14,346)
45,520
58,890
118,878
59,988
325,000
100,000
57,159
(42,841)
5,511,627
5,315,517
5,356,406
40,889
1,304,950
1,312,230
1,288,539
23,691
188,420
188,420
188,420
-
1,493,370
1,500,650
1,476,959
23,691
$ 4,018,257
$ 3,814,867
3,879,447
$ 64,580
20,370
$ 3,899,817
161
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
SB1 - TCEP
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
7,850,000
7,850,000
1,386,985
(6,463,015)
7,850,000
7,850,000
1,386,985
(6,463,015)
7,850,000
7,850,000
4,180,028
3,669,972
7,850,000
7,850,000
4,180,028
3,669,972
$ -
$ -
(2,793,043)
$ (2,793,043)
Budgetary Fund Balance, June 30 (GAAP Basis) $ -
162
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Community development
Total Charges to Appropriations
Budgetary Fund Balance, June 30 (Budgetary Basis)
Encumbrances
Budgetary Fund Balance, June 30 (GAAP Basis)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 2,485,281
$ 2,485,281
$ 2,485,281
$ -
-
-
26,048
26,048
35,750
86,200
180,546
94,346
2,521,031
2,571,481
2,691,875
120,394
280
280
280
-
290
290
290
-
570
570
570
-
$ 2,520,461 $ 2,570,911
2,691,305 $ 120,394
$ 2,691,305
163
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164
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.
165
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2019
Assets:
Current:
Cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Total Current Assets
Noncurrent:
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable
Accrued interest
Capital leases
Total Current Liabilities
Noncurrent:
Capital leases
Total Noncurrent Liabilities
Total Liabilities
Net Position:
Invested in capital assets
Unrestricted
Total Net Position
Total Liabilities and Net Position
Computer
Equipment Equipment/
and Vehicle Technology
Replacement Replacement Total
$ 1,626,457 $ 2,631,718 $ 4,258,175
- 29,020 29,020
6,352 4,257 10,609
- 648,371 648,371
1,632,809 3,313,366 4,946,175
4,392,669 3,330,859 7,723,528
4,392,669 3,330,859 7,723,528
$ 6,025,478 $ 6,644,225 $ 12,669,703
$ 307,887
$ 70,208
$ 378,095
-
30,272
30,272
-
453,174
453,174
307,887
553,654
861,541
-
1,465,999
1,465,999
-
1,465,999
1,465,999
307,887
2,019,653
2,327,540
4,392,669
1,411,686
5,804,355
1,324,922
3,212,886
4,537,808
5,717,591
4,624,572
10, 342,163
$ 6,025,478
$ 6,644,225
$ 12,669,703
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2019
Computer
Equipment
Equipment/
and Vehicle
Technology
Replacement
Replacement
Total
Operating Revenues:
Interdepartmental charges
$ 300,000
$ 421,550
$ 721,550
Miscellaneous
93,772
-
93,772
Total Operating Revenues
393,772
421,550
815,322
Operating Expenses:
Maintenance and operations
144,976
502,452
647,428
Contractual services
14,646
382,923
397,569
Depreciation expense
935,171
515,742
1,450,913
Total Operating Expenses
1,094,793
1,401,117
2,495,910
Operating Income (Loss)
(701,021)
(979,567)
(1,680,588)
Nonoperating Revenues (Expenses):
Interest revenue
60,557
42,195
102,752
Interest expense
-
(30,272)
(30,272)
Total Nonoperating
Revenues (Expenses)
60,557
11,923
72,480
Income (Loss) Before Transfers
(640,464)
(967,644)
(1,608,108)
Transfers in
-
2,098,360
2,098,360
Changes in Net Position
(640,464)
1,130,716
490,252
Net Position:
Beginning of Year
6,358,055
3,493,856
9,851,911
End of Fiscal Year
$ 5,717,591
$ 4,624,572
$ 10,342,163
167
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2019
Cash Flows from Operating Activities:
Cash received from interfund services provided
Cash paid to suppliers for goods and services
Cash received from others
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Principal paid on capital debt
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non -Cash Investing, Capital, and Financing Activities:
Capital leases
Acquisition of capital assets in accounts payable
Computer
Equipment Equipment/
and Vehicle Technology
Replacement Replacement Total
$ 300,100 $ 421,550 $ 721,650
(144,908) (728,381) (873,289)
93,772 93,772
248,964 (306,831) (57,867)
- 2,098,360 2,098,360
2,098,360 2,098,360
(598,076) (43,826) (641,902)
- (527,330) (527,330)
(598,076) (571,156) (1,169,232)
61,738 42,662 104,400
61,738 42,662 104,400
(287,374) 1,263,035 975,661
1,913,831 1,368,683 3,282,514
$ 1,626,457 $ 2,631,718 $ 4,258,175
$ (701,021) $ (979,567) $ (1,680,588)
935,171
515,742
1,450,913
100
-
100
-
140,685
140,685
14,714
16,309
31,023
949,985
672,736
1,622,721
$ 248,964 $ (306,831) $ (57,867)
$ - $ 2,446,503 $ 2,446,503
165,975 - 165,975
See Notes to Financial Statements 168
THIS PAGE INTENTIONALLY LEFT BLANK
169
CITY OF RANCHO CUCAMONGA
Agency Funds
Agency funds are used to account for assets held by the City as trustee or agent for individuals, private
organizations, or other governmental units, and/or other funds.
Special Deposits Fund - Established to account for all deposits held by the City in its fiduciary capacity.
Assessment District 82-1 Fund - Established to account for assessments received under the
Refunding Act of 1984 for 1915 Improvement Act Bonds. Assessments received are restricted for
payment of principal, interest and penalties thereon, upon presentation proper coupons.
Assessment District 84-2 Fund - Established to account for assessments received under the Improvement
Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties
thereon, upon presentation of proper coupons.
Assessment District 85-PD Fund - Established to account for assessments received under the Refunding
Act of 1984 for 1915 Improvement Act Bonds and Landscape/Lighting Act of 1972. Assessments received
are restricted for payment of principal, interest and penalties thereon, upon presentation of
proper coupons
Community Facilities District 88-2 Fund - Established to account for assessments received under the
Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest
and penalties thereon, upon presentation of proper coupons.
Assessment District 91-2 Fund - Established to account for assessments received under the Improvement
Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties
thereon, upon presentation of proper coupons.
Community Facilities District 93.3 Fund - Established to account for assessments received under the
Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest
and penalties thereon, upon presentation of proper coupons.
Assessment District 99-1 Fund - Established to account for assessments received under the Improvement
Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties
thereon, upon presentation of proper coupons.
Assessment District No. 93-1 Masi Commerce Center Fund - Established to account for assessments
received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of
principal, interest and penalties thereon, upon presentation of proper coupons.
Community Facilities District 2003-01 Series A Fund - This fund is used for the Community Facilities
District 2003-01 bond redemption process. The Bond Redemption fund is a short-term rotating fund,
generally used to consolidate the collections received from the payments of the property owners upon
payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in
this fund are used to meet the annual principal and semiannual interest payment on the bonds.
Community Facilities District 2003-01 Series B Fund - This fund is used for the Community Facilities
District 2003-01 bond redemption process. The Bond Redemption fund is a short-term rotating fund,
generally used to consolidate the collections received from the payments of the property owners upon
payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in
this fund are used to meet the annual principal and semiannual interest payment on the bonds.
Community Facilities District 2000-03 Rancho Summit Redemption Fund - Established to account for
assessments received under the Mello -Roos Community Facilities Act of 1982. Assessments received
are restricted for payment of principal, interest and penalties thereon, upon presentation of
proper coupons.
170
CITY OF RANCHO CUCAMONGA
Agency Funds
(Continued)
Community Facilities District 2000-03 Rancho Summit Reserve Fund - Established to account for the
reserve fund held by the trustee.
Community Facilities District 2004-01 Fund - This fund is used for the Community Facilities
District 2004-01 bond redemption process. The Bond Redemption fund is a short-term rotating fund,
generally used to consolidate the collections received from the payments of the property owners upon
payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in
this fund are used to meet the annual principal and semiannual interest payment on the bonds.
Community Facilities District 2000-03 Park Maintenance Fund - This fund is used for the maintenance of
parks and parkways located within the Community Facilities District No. 2000-03. The District is located
south of Summit Avenue on the east and west sides of Wardman Bullock Road.
CFD 2018-01 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.
171
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2019
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Cash and investments with fiscal agents
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Payable to trustee
Due to external parties/other agencies
Total Liabilities
Special Assessment Assessment Assessment
Deposits District 82-1 District 84-2 District 85-PD
$ 8,960,884 $ 47 $ 46 $ 2,572,796
123,900 - - 4,077
2,494 - - 11,631
- - - 7,674
y,VO/,L/6 4/ 140 .1) L, 7yU, I1O
$ 19,534 $ - $ - $ 117,422
17,400 - - 6,898
8,645,168 - - -
405,176 47 46 2,471,858
y,Utf/,L/tf :0 4/ 4) 40 zo L,Oub,'I Its
172
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2019 (CONTINUED)
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Cash and investments with fiscal agents
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Payable to trustee
Due to external parties/other agencies
Total Liabilities
Assessment Assessment
CFD 88-2 District 91-2 CFD 93-3 District 99-1
$ 4,545,259 $ 57,642 $ 4,044 $ 314,714
- 647 - -
10,474 183 - 1,110
$ 8,990 $ - $ - $ -
- 805 - -
4,546,743 57,667 4,044 315,824
p 1,JJJ,I JJ p JV,�IL � T,VTT W JIJ,VL7
173
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2019
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Cash and investments with fiscal agents
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Payable to trustee
Due to external parties/other agencies
Total Liabilities
CFD 2000-03
AD 93-1 Masi Rancho
Commerce CFD 2003-01 CFD 2003-01 Summit
Center Series A Series B Redemption
$ 554,313 $ 825,917 $ 223,496 $ 456,930
- 905 - 2,468
1,573 1,361 512 801
-P VVV,JI 1 1p L,LJI,V.7J -P JJI,VIY -P YV V,JVV
800,371 2,257,093 357,614 460,306
�p OVV,J/ 1 �p L,LDl,VJJ p JJl,01N p 90V,0V0
174
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2019 (CONTINUED)
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Cash and investments with fiscal agents
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Payable to trustee
Due to external parties/other agencies
Total Liabilities
CFD 2000-03
Rancho
Summit
Reserve CFD 2004-01
$ - $ 2,469,836 $
- 24,289
5,174
CFD 2000-03
Park CFD 2018-01
Maintenance Empire Lakes
555,061 $ 15,238
1,964 -
1,786 -
$ - $ $ 15,758 $ 134
8,121 -
- 15,085
262,895 3,698,431 534,932 19
�p LOL,ovu �p J,0V0,901 �p DD0,011 p ID,LJO
175
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2019
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Accrued interest
Cash and investments with fiscal agents
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Payable to trustee
Due to external parties/other agencies
Total Liabilities
Employee
Special Tax
Deduction
Refunding
CFD 2017-01
Account
Bonds 2015
No. Etiwanda
Total
$ 37,784
$ 1,765,528
$ -
$ 23,359,535
-
102,016
-
229,993
6,065
-
50,463
2,356
-
33,004
-
781,675
-
4,050,810
$ 37,784
$ 2,657,640
$ -
$ 27,723,805
$ $ - $ - $ 161,838
- - 33,224
- - 8,660,253
2,657,640 - 18,830,706
37,784 - - 37,784
$ 37,784 $ 2,657,640 $ - $ 27,723,805
176
THIS PAGE INTENTIONALLY LEFT BLANK
177
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2019
Balance
Balance
July 1, 2018
Additions
Deductions
June 30, 2019
Special Deposits
Assets:
Cash and investments
$
8,416,335
$
2,090,425
$
1,545,876
$
8,960,884
Receivables:
Accounts
139,017
123,900
139,017
123,900
Taxes
1,540
2,494
1,540
2,494
Total Assets
$
8,556,892
$
2,216,819
$
1,686,433
$
9,087,278
Liabilities:
Accounts payable
$
1,120
$
1,291,604
$
1,273,190
$
19,534
Accrued liabilities
17,400
-
-
17,400
Deposits payable
8,163,753
1,749,386
1,267,971
8,645,168
Payable to trustee
374,619
31,309
752
405,176
Total Liabilities
$
8,556,892
$
3,072,299
$
2,541,913
$
93087,278
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
$
1,936,033
$
1,624,691
$
987,928
$
2,572,796
Receivables:
Accounts
8,623
1,271
5,817
4,077
Taxes
14,599
11,631
14,599
11,631
Accrued interest
5,192
7,674
5,192
7,674
Total Assets
$
1,964,447
$
1,645,267
$
1,013,536
$
2,596,178
Liabilities:
Accounts payable
$
64,870
$
666,407
$
613,855
$
117,422
Accrued liabilities
6,553
6,898
6,553
6,898
Payable to trustee
1,893,025
1,808,808
1,229,975
2,471,858
Total Liabilities
$
1,964,448
$
2,482,113
$
1,850,383
$
2,596,178
178
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2019
Balance Balance
July 1, 2018 Additions Deductions June 30, 2019
CFD 88-2
Assets:
Cash and investments
Receivables:
Taxes
Accrued interest
Total Assets
Liabilities:
Accounts payable
Payable to trustee
Total Liabilities
Assessment District 91-2
Assets:
Cash and investments
Receivables:
Taxes
Accrued interest
Total Assets
Liabilities:
Accrued liabilities
Payable to trustee
Total Liabilities
CFD 93-3
Assets:
Cash and investments
Total Assets
Liabilities:
Payable to trustee
Total Liabilities
Assessment District 99-1
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Total Assets
Liabilities:
Payable to trustee
Total Liabilities
AD 93-1 Masi Commerce Center
Assets:
Cash and investments
Receivables:
Accrued interest
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities:
Accounts payable
Payable to trustee
Total Liabilities
$ 4,443,125 $ 113,345 $ 11,211 $ 4,545,259
1,156 - 1,156 -
9,588 10,474 9,588 10,474
$ 4,453,869 $ 123,819 $ 21,955 $ 4,555,733
$ - $ 8,990 $ - $ 8,990
4,453,868 113,345 20,470 4,546,743
$ 4,453,868 $ 122,335 $ 20,470 $ 4,555,733
$ 47,752 $ 40,515 $ 30,625 $ 57,642
139 647 139 647
121 183 121 183
$ 48,012 $ 41,345 $ 30,885 $ 58,472
$ 493 $ 805 $ 493 $ 805
47,519 42,345 32,197 57,667
$ 48,012 $ 43,150 $ 32,690 $ 58,472
$ - $ 4,044 $ - $ 4,044
$ $ 4,044 $ $ 4,044
$ $ 4,044 $ $ 4,044
$ - $ 4,044 $ $ 4,044
$ 302,500 $ 13,415 $ 1,201 $ 314,714
7,746 - 7,746 -
1,014 1,110 1,014 1,110
$ 311,260 $ 14,525 $ 9,961 $ 315,824
$ 311,260 $ 13,415 $ 8,851 $ 315,824
$ 311,260 $ 13,415 $ 8,851 $ 315,824
$ 520,258 $ 267,629 $ 233,574 $ 554,313
1,404 1,573 1,404 1,573
243,560 4,418 3,493 244,485
$ 765,222 $ 273,620 $ 238,471 $ 800,371
$ - $ 2,500 $ 2,500 $ -
765,222 272,047 236,898 800,371
$ 765,222 $ 274,547 $ 239,398 $ 800,371
179
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2019
Balance
Balance
July
1, 2018
Additions
Deductions
June 30, 2019
CFD 2003-01 Series A
Assets:
Cash and investments
$
711,884
$
1,169,468
$
1,055,435
$
825,917
Receivables:
Taxes
1,681
905
1,681
905
Accrued interest
1,144
1,361
1,144
1,361
Restricted assets:
Cash and investments with fiscal agents
1,423,364
45,491
39,945
1,428,910
Total Assets
$
2,138,073
$
1,217,225
$
1,098,205
$
2,257,093
Liabilities:
Accounts payable
$
-
$
2,000
$
2,000
$
-
Payable to trustee
2,138,073
1,215,865
1,096,845
2,257,093
Total Liabilities
$
2,138,073
$
1,217,865
$
1,098,845
$
2,257,093
CFD 2003-01 Series B
Assets:
Cash and investments
$
208,889
$
211,148
$
196,541
$
223,496
Receivables:
Accrued interest
459
512
459
512
Restricted assets:
Cash and investments with fiscal agents
133,078
4,327
3,799
133,606
Total Assets
$
342,426
$
215,987
$
200,799
$
357,614
Liabilities:
Payable to trustee
$
342,426
$
215,475
$
200,287
$
357,614
Total Liabilities
$
342,426
$
215,475
$
200,287
$
357,614
CFD 2000-03 Rancho Summit Redemption
Assets:
Cash and investments
$
411,201
$
591,517
$
545,788
$
456,930
Receivables:
Taxes
3,262
2,468
3,262
2,468
Accrued interest
693
801
693
801
Restricted assets:
Cash and investments with fiscal agents
50
5,148
5,091
107
Total Assets
$
415,206
$
599,934
$
554,834
$
460,306
Liabilities:
Accounts payable
$
-
$
1,500
$
1,500
$
-
Payable to trustee
415,206
599,134
554,034
460,306
Total Liabilities
$
415,206
$
600,634
$
555,534
$
460,306
CFD 2000-03 Rancho Summit Reserve
Assets:
Restricted assets:
Cash and investments with fiscal agents
$
262,994
$
4,610
$
4,709
$
262,895
Total Assets
$
262,994
$
4,610
$
4,709
$
262,895
Liabilities:
Payable to trustee
$
262,994
$
4,610
$
4,709
$
262,895
Total Liabilities
$
262,994
$
4,610
$
4,709
$
262,895
180
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2019
Balance
Balance
July
1, 2018
Additions
Deductions
June 30, 2019
CFD 2004-01
Assets:
Cash and investments
$
2,099,990
$
2,742,827
$
2,372,981
$
2,469,836
Receivables:
Taxes
34,656
24,289
34,656
24,289
Accrued interest
4,265
5,174
4,265
5,174
Restricted assets:
Cash and investments with fiscal agents
1,194,880
39,963
35,711
1,199,132
Total Assets
$
3,333,791
$
2,812,253
$
2,447,613
$
3,698,431
Liabilities:
Payable to trustee
$
3,333,791
$
2,807,079
$
2,442,439
$
3,698,431
Total Liabilities
$
3,333,791
$
2,807,079
$
2,442,439
$
3,698,431
CFD 2000-03 Park Maintenance
Assets:
Cash and investments
$
522,129
$
490,787
$
457,855
$
555,061
Receivables:
Taxes
2,530
1,964
2,530
1,964
Accrued interest
1,456
1,786
1,456
1,786
Total Assets
$
526,115
$
494,537
$
461,841
$
558,811
Liabilities:
Accounts payable
$
31,541
$
163,270
$
179,053
$
15,758
Accrued liabilities
7,789
8,121
7,789
8,121
Payable to trustee
486,785
505,702
457,555
534,932
Total Liabilities
$
526,115
$
677,093
$
644,397
$
558,811
CFD 2018-01 Empire Lakes
Assets:
Cash and investments
$
72,686
$
3,665
$
61,113
$
15,238
Receivables:
Accounts
2,497
-
2,497
-
Total Assets
$
75,183
$
3,665
$
63,610
$
15,238
Liabilities:
Accounts payable
$
14,578
$
46,604
$
61,048
$
134
Deposits payable
59,205
-
44,120
15,085
Payable to trustee
1,400
47,941
49,322
19
Total Liabilities
$
75,183
$
94,545
$
154,490
$
15,238
Employee Deduction Account
Assets:
Cash and investments
$
25,705
$
324,578
$
312,499
$
37,784
Total Assets
$
25,705
$
324,578
$
312,499
$
37,784
Liabilities:
Due to external parties/other agencies
$
25,705
$
161,522
$
149,443
$
37,784
Total Liabilities
$
25,705
$
161,522
$
149,443
$
37,784
181
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2019
Balance
Balance
July
1, 2018
Additions
Deductions
June 30, 2019
Special Tax Refunding Bonds 2015
Assets:
Cash and investments
$
1,589,939
$
1,920,063
$
1,744,474
$
1,765,528
Receivables:
Accounts
102,016
100,000
100,000
102,016
Taxes
26,124
6,065
26,124
6,065
Accrued interest
2,115
2,356
2,115
2,356
Restricted assets:
Cash and investments with fiscal agents
778,081
26,360
22,766
781,675
Total Assets
$
2,498,275
$
2,054,844
$
1,895,479
$
2,657,640
Liabilities:
Accounts payable
$
-
$
8,200
$
8,200
$
-
Payable to trustee
2,498,275
2,052,487
1,893,122
2,657,640
Total Liabilities
$
2,498,275
$
2,060,687
$
1,901,322
$
2,657,640
CFD 2017-01 No. Etiwanda
Assets:
Cash and investments
$
2,557
$
-
$
2,557
$
-
Total Assets
$
2,557
$
-
$
2,557
$
Liabilities:
Accounts payable
$
2,557
$
$
2,557
$
Total Liabilities
$
2,557
$
-
$
2,557
$
Totals - All Agency Funds
Assets:
Cash and investments
$
21,311,076
$
11,608,117
$
9,559,658
$
23,359,535
Receivables:
Accounts
259,899
225,171
255,077
229,993
Taxes
85,687
50,463
85,687
50,463
Accrued interest
27,451
33,004
27,451
33,004
Restricted assets:
Cash and investments with fiscal agents
4,036,007
130,317
115,514
4,050,810
Total Assets
$
25,720,120
$
12,047,072
$
10,043,387
$
27,723,805
Liabilities:
Accounts payable
$
114,666
$
2,191,075
$
2,143,903
$
161,838
Accrued liabilities
32,235
15,824
14,835
33,224
Deposits payable
8,222,958
1,749,386
1,312,091
8,660,253
Payable to trustee
17,324,556
9,733,606
8,227,456
18,830,706
Due to external parties/other agencies
25,705
161,522
149,443
37,784
Total Liabilities
$
25,720,120
$
13,851,413
$
11,847,728
$
27,723,805
182
City of Rancho Cucamonga
Comprehensive Annual Financial Report
June 30, 2019
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
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. 185-189
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. 190-195
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. 196-201
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. 202-203
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. 204-206
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
183
THIS PAGE INTENTIONALLY LEFT BLANK
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191
CITY OF RANCHO CUCAMONGA
Principal Property Taxpayers
Current Year and Nine Years Ago
2019
Percent of
Total City
Assessed Assessed
Taxpayer Value Value
Homecoming I at Terra Vista LLC
$274,331,402
1.04%
Rancho Mall LLC
271,335,817
1.03%
Prologis California I LLC/Catellus
184,658,850
0.70%
Frito-Lay North America Inc
155,087,135
0.59%
MFREVF II - Empire Lakes LLC
137,071,906
0.52%
GS Rancho LLC
124,539,372
0.47%
Goodman Rancho SPE LLC
114,456,185
0.43%
CH Realty VII MF Rancho Cucamonga
109,169,906
0.41%
EQR-Fanwell 2007 LP
106,753,114
0.40%
Knickerbocker Properties Inc XLVII
106,699,064
0.40%
Victoria Gardens Mall LLC
-
0.00%
Catellus Development Corporation
-
0.00%
PK Sale LLC
-
0.00%
Rreef America Reit 11 Corporation TTTT
-
0.00%
Teachers Insurance and Annuity Association
-
0.00%
T Napf Meritage Ownership
-
0.00%
PPF MF 9200 Milliken Ave LP
-
0.00%
$1,584,102,751 6.00%
2010
Percent of
Total City
Assessed Assessed
Value Value
$ 119,645,392
0.60%
-
0.00%
-
0.00%
-
0.00%
0.00%
-
0.00%
-
0.00%
-
0.00%
95,684,574
0.48%
94,390,649
0.47%
240,202,031
1.21 %
176,374,833
0.89%
122,477,342
0.62%
98,957,647
0.50%
94,311,240
0.47%
87,447,180
0.44%
77,499,134
0.39%
$ 1,206,990,022
6.07%
Source: San Bernardino County Assessor 2009/10 and 2018/19 Combined Tax Rolls
and the SBE Non Unitary Tax Roll; HdL, Coren & Cone
192
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
Year Ended
for the
Percent
Subsequent
June 30
Fiscal Year
Amount
of Levy
Years
2010
98,181,404
95,149,733
96.91 %
N/A
2011
95,051,899
89,513,493
94.17%
N/A
2012
93,318,030
86,742,369
92.95%
N/A
2013
93,235,913
85,131,812
91.31%
N/A
2014
95,016,035
93,063,071
97.94%
N/A
2015
100,428,866
98,457,115
98.04%
N/A
2016
105,120,614
103,112,427
98.09%
N/A
2017
108,069,418
107,991,619
99.93%
N/A
2018
112,950,393
114,778,741
101.62%
N/A
2019
119,970,594
122,206,002
101.86%
N/A
Total Collections to Date
Percent
Amount
of Levy
95,149,733
96.91 %
89,513,493
94.17%
86,742,369
92.95%
85,131,812
91.31%
93,063,071
97.94%
98,457,115
98.04%
103,112,427
98.09%
107,991,619
99.93%
114, 778, 741
101.62%
122,206,002
101.86%
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
193
THIS PAGE INTENTIONALLY LEFT BLANK
194
CITY OF RANCHO CUCAMONGA
Principal Sales Tax Remitters
Current Year and Nine Years Ago
2019
Business Name Business Category
Anker
Electronics/Appliance Stores
Apple
Electronics/Appliance Stores
Bass Pro Shops Outdoor World
Sporting Goods/Bike Stores
Best Buy
Electronics/Appliance Stores
Chevron
Service Stations
Circle K
Service Stations
Costco
Discount Department Stores
Home Depot
Building Materials
ICL Performance Products
Drug/Chemicals
Jeromes
Home Furnishings
Living Spaces Furniture
Home Furnishings
Lowes
Building Materials
Macys
Department Stores
Monoprice
Fulfillment Centers
My Goods Market
Service Stations
Parallon Supplies Chain Solutions
Medical /Biotech
Ralphs
Grocery Stores
Ross
Family Apparel
Schwarz Paper Company
Light Industrial/Printers
Shell
Service Stations
Southwire
Energy/Utilities
Stater Bros
Grocery Stores Liquor
Target
Discount Department Stores
Walmart
Discount Department Stores
Walters Wholesale Electric
Plumbing/Electrical Supplies
* Firms listed alphabetically
Source: The HdL Companies; State Board of Equalization
Business Name
Albertsons
American Building Supply
Ameron International
Apple Computer
Bass Pro Shops Outdoor World
Best Buy
Chevron
Circle K
Costco
Home Depot
JC Penney
Living Spaces Furniture
Lowes
Macys
Nic Partners
Novartis Animal Health
Orchard Supply Hardware
Ralphs
Rancho Mobil
Sears Grand
Southwire Company
Stater Bros.
Tamco
Target
Wal Mart
2010
Business Category
Grocery Stores Liquor
Contractors
Contractors
Electronics/Appliance Stores
Sporting Goods/Bike Stores
Electronics/Appliance Stores
Service Stations
Service Station
Discount Department Stores
Lumber/Building Materials
Department Stores
Home Furnishings
Lumber/Building Materials
Department Stores
Electrical Equipment
Health/Medical
Hardware Stores
Grocery Stores Liquor
Service Stations
Department Stores
Light Industrial/Printers
Grocery Stores Liquor
Heavy Industrial
Discount Department Stores
Discount Department Stores
195
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
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 - -
2014 3 - 2,083,890 - -
2015 3 - 1,564,076 - -
2016 3 - 1,034,303 - -
2017 3 - 486,229 - -
2018 3 - - - -
2019 3 - 1,919,173 - -
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.
2,615,708
2,083,890
1,564,076
1,034,303
486,229
1,919,173
Business -type Activities
Lease
Total
Total
Revenue Certificates of
Business -type
Primary
Bonds Participation
Activities
Government
- -
-
424,995,200
- -
-
415,158,811
- -
-
2,615,708
- -
-
2,083,890
- -
-
1,564,076
- -
-
1,034,303
- -
-
486,229
13,555,938 -
13,555,938
15,475,111
Percentage
Debt
of Personal
Per
Income 2
Capita 2
8.37%
14,812
7.72%
13,811
0.00%
-
0.05%
0
0.04%
67
0.03%
50
0.02%
34
0.01 %
16.22
0.00%
-
0.27%
481
197
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
June 30 Bonds Bonds Total Value 1 Income 2
2010 - 404,990 404,990
2.04%
2011 - 395,920 395,920
7.63%
2012 3 - - -
0.00%
2013 3 - - -
0.00%
2014 3 - - -
0.00%
2015 3 - - -
0.00%
2016 3 - - -
0.00%
2017 3 - - -
0.00%
2018 3 - - -
0.00%
2019 3 - - -
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.
7.53%
7.36%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
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.
Per
Capita 2
2,264
2,336
198
CITY OF RANCHO CUCAMONGA
Direct and Overlapping Debt
June 30, 2019
City Net Taxable Assessed Value
Overlapping Tax and Assessment Debt:
Metropolitan Water District
Chaffey Community College District
Chaffey Union High School District
Alta Loma School District
Central School District
Cucamonga School District Community Facilities District No. 97-1
Etiwanda School District
Etiwanda School District CFD No. 7
Etiwanda School District CFD No. 8
Etiwanda School District CFD No. 9
Etiwanda School District CFD Nos. 2004-2 & 2007-1
Etiwanda School District Rancho Etiwanda Public Facilities
Authority CFD No. 1
Fontana Unified School District
Upland Unified School District
City of Rancho Cucamonga CFDs
City of Rancho Cucamonga 1915 Act Bonds
Total overlapping tax and assessment debt
Direct and Overlapping General Fund Debt
San Bernardino County General Fund Obligations
San Bernardino County Pension Obligation Bonds
San Bernardino County Flood Control Dist General Fund Oblig
Chaffey Community College District General Fund Obligations
Cucamonga School District Certificates of Participation
Fontana Unified School District Certificates of Participation
City of Rancho Cucamonga General Fund Obligations
West Valley Vector Control District Certificates of Participation
Total gross direct and overlapping general fund debt
Overlapping Tax Increment Debt (Successor Agency)
Total overlapping debt
City direct debt
Total direct and overlapping debt
$
26,419,050,876 2
City
Percentage
Total
Share of
Applicable'
Debt 6/30/19
Debt
0.906%
$
48,050,000
435,333
23.268%
132,540,000
30,839,407
43.971 %
479,265,904
210,738,011
98.798%
44,002,889
43,473,974
97.977%
47,446,765
46,486,917
100.000%
4,470,000
4,470,000
68.675%
42,995,326
29,527,040
21.530%
8,320,000
1,791,296
68.006%
4,525,000
3,077,272
70.844%
7,475,000
5,295,589
100.000%
15,680,000
15,680,000
100.000%
11,380,000
11,380,000
0.436%
179,940,349
784,540
0.120%
99,507,400
119,409
100.000%
66,475,000
66,475,000
100.000%
830,000
830,000
1,192,903,633
471,403,788
11.877%
$
335,155,000
39,806,359
11.877%
288,826,268
34,303,896
11.877%
62,820,000
7,461,131
23.268%
30,890,000
7,187,485
40.248%
5,686,000
2,288,501
0.436%
30,035,000
130,953
100.000%
12,195,000
12,195,000
32.292%
2,391,448
772,246
767,998,716
104,145,571
100.000%
261,550,000
261,550,000
$
2,222,452,349
837,099,359
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.
$ 837,099,359
2 Includes aircraft values. For 2019, 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
199
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KIIZI]
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
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
2019 2
n/a
n/a n/a
n/a
Note: Details regarding the City's outstanding debt can be found in the
notes to the financial statements.
Tax increment figures are net of related pass -through payments.
2 As a result of the dissolution of the Redevelopment Agency on January
2012 indebtedness was transferred to the Successor Agency.
201
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)
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%
2018
179,412
5,767,788
32,148
3.1%
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
202
CITY OF RANCHO CUCAMONGA
Principal Employers
Current Year and Nine Years Ago*
2019
Number of
Employer
Employees,
Rank
Etiwanda School District
2,387
1
Chaffey Community College
2,120
2
Inland Empire Health Plan
2,078
3
Mission Foods
950
4
Alta Loma School District
940
5
City of Rancho Cucamonga
761
6
Amphastar Pharmaceutical
657
7
Mercury Insurance Company
640
8
Macy's
625
9
Central School District
608
10
Bass Pro Shop
500
11
Coca Cola Bottling Co.
400
12
ADECCO
360
13
Percent of
Total Number of
2.55%
2.27%
2.22%
1.02%
1.01%
0.81 %
0.70%
0.68%
0.67%
0.65%
0.53%
0.43%
0.39%
n/a
871
n/a
n/a
690
874
880
606
n/a
n/a
500
n/a
n/a
2010
Percent of
Total
Rank
Employment
n/a
n/a
3
1.24%
n/a
n/a
n/a
n/a
5
0.98%
2
1.24%
1
1.25%
6
0.86%
n/a
n/a
n/a
n/a
10
0.71 %
n/a
n/a
n/a
n/a
Note: "Total Employment" as used above represents the total employment of all employers located within City limits.
Includes full-time and part-time employees.
*Only the top ten employers for each year presented have data displayed. If a company did not rank in the top
ten employers for both years presented, then one of the two years will state ' n/a".
Source: ESRI, Infogroup, Economic and Community Development Department
203
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