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City of Rancho Cucamonga, California
Annual Comprehensive Financial Report
Year Ended June 30, 2021
Prepared by the
City of Rancho Cucamonga
Finance Department
Tamara L. Oatman
Finance Director
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CITY OF RANCHO CUCAMONGA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letterof Transmittal ..............................................................................................................................i
CityOfficials .....................................................................................................................................xxii
OrganizationChart.......................................................................................................................... xxiii
Certificate of Achievement for Excellence in Financial Reporting ..................................................xxiv
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT...............................................................................................1
MANAGEMENT'S DISCUSSION AND ANALYSIS .............................................................................5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statementof Net Position .................................................................................................... 25
Statementof Activities.......................................................................................................... 26
Fund Financial Statements:
Balance Sheet- Governmental Funds................................................................................. 28
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position .......................................................................................... 31
Statement of Revenues, Expenditures and Changes in Fund
Balances- Governmental Funds ......................................................................................... 32
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities.......................................................................................................... 35
Statement of Net Position - Proprietary Funds .................................................................... 36
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds.......................................................................................... 37
Statement of Cash Flows - Proprietary Funds..................................................................... 38
Statement of Fiduciary Net Position - Fiduciary Funds........................................................ 39
Statement of Changes in Fiduciary Net Position - Fiduciary Funds .................................... 40
Notes to Financial Statements.................................................................................................... 41
CITY OF RANCHO CUCAMONGA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information........................................................................ 101
Budgetary Comparison Information:
Budgetary Comparison Schedule - General Fund............................................................. 102
Budgetary Comparison Schedule - Development Impact Fees......................................... 103
Budgetary Comparison Schedule - Lighting Districts ........................................................ 104
Budgetary Comparison Schedule - Housing Successor Agency....................................... 105
Budgetary Comparison Schedule - Fire District................................................................. 106
Budgetary Comparison Schedule - Federal Grants Fund.................................................. 107
Pension Information:
Schedule of Changes in Net Pension Liability and Related Ratios -
Miscellaneous Plan -Agent Multiple-Employer Plan ...................................................... 108
Schedule of Plan Contributions - Miscellaneous Plan -
Agent Multiple-Employer Plan......................................................................................... 109
Schedule of Proportionate Share of the Net Pension Liability-
Miscellaneous Rate Plan - Cost Sharing Multiple-Employer Plan.................................. 110
Schedule of Plan Contributions - Miscellaneous Rate Plan -
Cost Sharing Multiple-Employer Plan............................................................................. 111
Schedule of Proportionate Share of the Net Pension Liability-
Safety Rate Plan - Cost Sharing Multiple-Employer Plan............................................... 112
Schedule of Plan Contributions - Safety Rate Plan -
Cost Sharing Multiple-Employer Plan............................................................................. 113
Schedule of Changes in Net Pension Liability/(Asset) and Related Ratios -
PARS Retirement Enhancement Plan ............................................................................ 114
Schedule of Plan Contributions - PARS Retirement Enhancement Plan .......................... 115
Other Post-Employment Benefit Information:
Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios.......................... 116
Schedule of Contributions - OPEB..................................................................................... 117
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet- Nonmajor Governmental Funds.................................................. 122
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Funds................................................................ 132
Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds:
GasTax.............................................................................................................................. 141
Recreation.......................................................................................................................... 142
Beautification...................................................................................................................... 143
Landscape Maintenance Districts...................................................................................... 144
PedestrianGrant................................................................................................................ 145
Community Development Block Grant............................................................................... 146
Assessment Administration................................................................................................ 147
CITY OF RANCHO CUCAMONGA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021
TABLE OF CONTENTS
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Number
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued)
Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds (Continued):
AirQuality Improvement..................................................................................................... 148
Masi Commerce Center..................................................................................................... 149
MeasureI ........................................................................................................................... 150
LibraryServices ................................................................................................................. 151
PublicSafety Grants .......................................................................................................... 152
UsedOil Recycling............................................................................................................. 153
Library Services Grants...................................................................................................... 154
Litter Reduction Grant........................................................................................................ 155
UndergroundUtilities.......................................................................................................... 156
Citywide Infrastructure Improvement................................................................................. 157
Proposition1 B.................................................................................................................... 158
Public Resource Grants..................................................................................................... 159
Integrated Waste Management.......................................................................................... 160
SB1 —TCEP....................................................................................................................... 161
PublicArt Trust................................................................................................................... 162
StateGrants Fund.............................................................................................................. 163
AD 91-2 Redemption — Day Canyon.................................................................................. 164
PD85 Maintenance............................................................................................................ 165
CFD 2000-03 Park Maintenance ....................................................................................... 166
CFD 2017-01 No. Etiwanda............................................................................................... 167
CFD 2018-01 Empire Lakes .............................................................................................. 168
Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds:
CapitalProjects Fund......................................................................................................... 169
Combining Statement of Net Position - Internal Service Funds............................................... 171
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Internal Service Funds.............................................................................. 172
Combining Statement of Cash Flows - Internal Service Funds................................................ 173
Combining Statement of Fiduciary Net Position -All Custodial Funds .................................... 177
Combining Statement of Changes in Fiduciary Net Position -All Custodial Funds................. 183
CITY OF RANCHO CUCAMONGA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021
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STATISTICAL SECTION
Financial Trends:
Net Position by Component - Last Ten Fiscal Years......................................................... 192
Statement of Activities (Condensed) - Last Ten Fiscal Years ........................................... 193
Fund Balances of Governmental Funds - Last Ten Fiscal Years...................................... 195
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years................... 196
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property ................................... 197
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years................................ 198
Principal Property Taxpayers - Current Year and Nine Years Ago ................................... 199
Property Tax Levies and Collections - Last Ten Fiscal Years........................................... 200
Principal Sales Tax Remitters - Current Year and Nine Years Ago .................................. 202
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years............................................ 203
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years.............................. 205
Direct and Overlapping Debt.............................................................................................. 206
Legal Debt Margin Information - Last Ten Fiscal Years .................................................... 207
Pledged-Revenue Coverage - Last Ten Fiscal Years ....................................................... 208
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Calendar Years................................... 209
Principal Employers - Current Year and Nine Years Ago.................................................. 210
Operating Information:
Full-Time and Part-Time City Employees by Function - Last Ten Fiscal Years................ 211
Operating Indicators by Function - Last Ten Fiscal Years................................................. 212
Capital Asset Statistics by Function - Last Ten Fiscal Years............................................. 213
City of Rancho Cucamonga
Annual Comprehensive Financial Report
June 30, 2021
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 Manager John R.Gillison
CITY OF RANCHO CUCAMONGA
10500 Civic Center Drive I P.O.Box 807 1 Rancho Cucamonga,CA 91729-0807 1 909.477.2700 1 www.CityofRC.us
December 10,2021
To the Honorable Mayor,Members of the City Council,and Citizens of the City of Rancho Cucamonga:
With great pleasure, we present to you the City of Rancho Cucamonga's Annual Comprehensive Financial Report
for the Fiscal Year ended June 30, 2021. The Annual Comprehensive 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. Management provides a reasonable basis for making these representations by establishing a comprehensive
internal control framework; one that is designed to protect the City's assets from loss,theft, or misuse and compile
sufficient reliable information to prepare the City's financial statements in conformity with generally accepted
accounting principles (GAAP). As management,we assert that this financial report is complete and reliable in all
material respects to the best of our knowledge and belief.
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
City of Rancho Cucamonga's financial statements for the Fiscal Year ended June 30, 2021, 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. Based upon the audit, the
independent auditor concluded 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, 2021, 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 City's financial statements is part of a broader, federally mandated Single Audit
designed to meet federal grantor agencies' special needs. 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, emphasizing 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.
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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's MD&A can be found immediately following the independent
auditors'report.
L PROFILE OF THE CITY OF RANCHO CUCAMONGA
General Information
The City of Rancho Cucamonga currently has an estimated population of 175,131 and encompasses approximately
46.5 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,
emphasizing the City's efforts to attract and retain 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. It operates under the Council-Manager form of city government.
The Mayor, City Treasurer, and City Clerk are elected at large. The four City Council members are elected by
geographic district. 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 City Council member. 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 provides quality service by blending the talents of City staff and utilizing other agencies. Other specialized
agencies furnish certain services necessary to continue the high quality of life, such as water and sanitation
(i.e., sewage). 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 contracted from the
San Bernardino County Sheriffs Department.
The Rancho Cucamonga Public Improvement Corporation was established for charitable purposes, including
rendering financial assistance to the City by financing, acquiring, constructing, improving, and leasing public
improvements to benefit residents of the City and the surrounding area. The Rancho Cucamonga Fire Protection
District was taken over from the County of San Bernardino in July 1989 to provide fire suppression and protection.
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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.
Local Economy
During Fiscal Year 2020/21, the City began to recover from the COVID-19 pandemic-induced downturn. In that
respect, many factors are similar to the recovery which followed the Great Recession from 2009-2010, including
substantial property turnover and development proposals, increased commercial activity along major business
corridors,and substantial public and private investment in infrastructure.There are,however,some significant focus
areas specific sectors of the economy which differ from the most recent recovery. Notably,there is greater private
sector interest in the development of industrial warehouse space, a weaker recovery for certain portions of the
hospitality sector due to changing trends in business travel, and traditional retail is being ever more squeezed by
online shopping trends,which accelerated during the lockdowns and business closures.
With respect to the hospitality industry, which was significantly impacted by the COVID-19 pandemic, there is
room for optimism in relation to hotels. In January 2021, hotels within the City had occupancy rates below
50 percent, with an average daily room rate of $95 revenue per room night. As of September 2021, however,
occupancy is above 74 percent, and the average daily room rate is $148 revenue per room night. By comparison to
adjacent areas,the City has about eighteen percent higher occupancy and$27 higher revenue per room night.While
still below historical trends for the City and still not likely to return to those levels until 2022,it is a positive indicator
for the City's transient occupancy tax revenues. Additionally, we are once again seeing renewed interest in
entitlements for new hotel construction,which has not been present for several years.
The City experienced a net taxable value increase of 4.6% for the 2020/21 property tax roll. This is slightly lower
than the countywide increase of 5.8%. The increase is largely the result of the current median home price rapidly
increasing, with detached single-family residential increasing 8.0% over the prior year. Growth in the number of
homes sales slowed,with few homes coming on the market, even though sale prices are continuing to rise. Likely,
due to low-interest rates and the limited supply of new housing,median home prices will continue to rise. A similar
impact in terms of increases is also occurring on rental rates for apartments as well.
During Fiscal Year 2020/21, the City experienced a significant drop in sales tax revenue which is expected to be
recouped mostly in the next few fiscal years. A far greater concern is the permanent changes in sales tax allocation
from the countywide sales tax pool. With the COVID-19 pandemic intensifying the shift for consumers from
traditional retail to online retailers,the City receives a share of the sales taxes generated from out-of-state retailers.
Recently a large online retailer with warehouses in and outside of California changed its status to an in-state retailer.
In so doing, this retailer significantly impacted the flow of sales tax revenue out of countywide pools and
into specific cities where their fulfillment centers are located. The result is that most cities, including the
City of Rancho Cucamonga,will be negatively impacted and receive a reduced share of overall sales tax revenues.
At the same time,a few cities will receive a disproportionately significant windfall as a result of a simple accounting
change. The result for Rancho Cucamonga is that sales taxes in excess of$1 million per year will no longer be
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generated for the City, and our growth in sales tax revenue will be decreased accordingly. While the impact of this
is somewhat blunted by the additional out-of-state sales tax collection, it is substantial and resulted in the City
reducing expenditures,hiring, and other costs accordingly.
Another uncertainty surrounds the long-term impacts of remote work. The City of Rancho Cucamonga, like so
many other organizations, approached remote work cautiously yet adapted well and found ways to compensate for
any impacts on productivity and culture. In terms of the private sector, the impacts of remote work on the office
sector remain uncertain. As a result,the City is likely to see a change in the type of office space businesses need as
well as a reduction in demand for overall large office space. Future office space, it appears, may trend towards
fewer small individual offices and cubicles and more drop-in offices for remote workers,more large inviting flexible
spaces for collaborating and team meetings,and enhanced office design flexibility to adapt to quicker shifting trends
and needs.Locally,there are no new office buildings under construction or in design.Vacancy rates are still holding
in the 9%range, and market rent remains in the low $2 per square foot range with little change over the last year.
These conditions are challenging for the City with a long-term vision to develop Haven Avenue as its office corridor.
Nevertheless, there are some reasons for optimism. Over time, the City has become associated with corporate
headquarters and innovation. To some degree, remote work is accelerating this trend due to the City's high
percentage of knowledge workers with advanced degrees. Furthermore, while employment in the City dropped a
bit more than in California during the COVID-19 pandemic due to a robust service sector,it is also recovering faster
post-pandemic. Because of the City's high percentage of knowledge-based workers with advanced degrees, who
are better positioned to work remotely, the economic impacts of the downturn were somewhat blunted. The
professional services sector, finance, and insurance sector, and real estate sector, as a few examples, are now
recovering quickly and paying quite well, reflecting fewer impacts from automation and a larger share of
higher-paying jobs in the city. Relatively speaking, this positions the City better for recovery than other areas of
San Bernardino County or the Inland Empire.
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 transfers out to other funds. 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 as well as Special Revenue and Capital Projects Funds.
The use of an encumbrance system further maintains budgetary control. 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 for Fiscal
Year 2021/22 total $62,023,050. Funds for these projects come from various sources, including development
impact fees, State gasoline taxes, grant funds, and special assessments.
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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 2020/21, the City has $11.46 million in lease revenue bonds and approximately $1 million in capital leases
outstanding. The bonds were issued in January 2019 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. The project's capital costs will be recovered using revenue
from municipal broadband customers managed by a private company to minimize operating overhead costs for the
City. The capital leases were entered into in December 2018 to finance the acquisition of hardware equipment and
software for the replacement of the City's data center infrastructure.
II. HIGHLIGHTS OF FISCAL YEAR 2020/21
Economic and Community Development
The Economic and Community Development Department continues to improve 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 while facilitating 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's business community was significantly impacted by
the COVID-19 pandemic during the second half of the fiscal year. Industries such as food,beverage,and hospitality
were severely impacted by the State's shelter in place orders and closure of non-essential businesses. These
industries support a large part of the City's revenues, employment,and quality of life in the community.
Community and Economic Development staff created a COVID-19 Response Team to support and address local
business needs during the pandemic. The first task of this team was to create a policy that would enable restaurants
to operate outdoors. The response was very successful and then translated to other industries such as gyms,
churches,hair, and beauty. Additionally,the City received CARES Act funding to fund several relief programs to
assist its residents and businesses. Some of these programs included grant funding to assist with outdoor operations,
business and residential rental assistance, and matching grants for COVID-compliant businesses.
The second wave of funding was allocated to the City through its Community Development Block Grant(CDBG)
Program to prevent,prepare for,and respond to the COVID-19 pandemic. The City created a COVID-19 Business
Relief Program that provided grants to qualified businesses needing rent and utility relief. A total of$986,507 was
allocated to this program. Grants ranged between$10,000 and$20,000.
The Cucamonga Station Plan was completed in June 2021, which consolidates all land use and development plan
details for Planning Area 10, around the Metrolink Station, representing 27.1 acres. This Plan guides the creation
of a vibrant and intense mixed-use transit hub around the Rancho Cucamonga Metrolink Station. It also establishes
design and zoning standards to create a neighborhood where one can easily walk,bike, and take transit to a mix of
housing, office, retail, and cultural amenities. The Cucamonga Station Plan provides a unifying vision with
standards and guidelines that continue the objectives of the former Industrial Area Specific Plan. The Cucamonga
Station Plan is designed to foster an integrated environment of residential, commercial, and office uses that is
walkable and oriented around premium transit services.
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This Plan will facilitate recent private investments that are focused on a multi-modal transit-centric project. Recent
developments include the potential of high-speed rail from Las Vegas stopping in Rancho Cucamonga along with
an underground tunnel featuring self-driving shuttles connecting the Rancho Cucamonga Metrolink Station to the
Ontario International Airport.
In September 2021,staff hosted a Hiring Fair aimed at connecting job seekers with local employers needing to hire.
While the event had a low turnout, as many organizers of job and hiring fairs have experienced amidst the
COVID-19 pandemic, the event was successfully managed. The event was held outdoors at Central Park and
included 25 local employers who offered over 125 jobs. Interviews during the event were conducted, and five job
offers were made.
Affordable Housing
In 2019 the City, in partnership with Orange Housing Development, completed Villa Pacifica 11, a 40-unit senior
affordable housing project,and in October 2020,the City's completed its newest senior affordable housing project,
Day Creek Villas,in partnership with National CORE. Day Creek Villas includes a total of 140 1-and 2-bedroom
units conveniently located within walking distance to shopping, dining, recreational amenities, and public
transportation. The housing project offers affordable rents to residents earning 30%,45%,and 60%of the County's
median income.
The City recently completed a draft of the 2021-2029 Housing Element that was submitted to the State Department
of Housing and Community Development (HCD) on June 2, 2021. On August 2, 2021, the City received a letter
from HCD outlining revisions necessary for compliance with State Housing Element Law. The revision of the
2021-2029 Housing Element addresses and responds to the comments provided by HCD. The revised draft has
been sent to HCD for another 60-day review period. It is anticipated the final Draft Housing Element will be
adopted in late December along with the City's General Plan update.
In 2020 the City formed an Inclusionary Housing Committee (the Committee) to evaluate the adoption of an
Inclusionary Ordinance to create opportunities for the development of affordable housing in the City. The
Committee was a seven-member group that included housing professionals as well as commercial developers and
one resident. Four meetings were held with the Inclusionary Housing Committee. The Committee's work
concluded with a range of policies for further consideration in the adoption of an Inclusionary Housing Ordinance
as well as the idea of creating a commercial linkage fee to generate revenue for affordable housing.
In August 2020,the City continued its Emergency Rental Assistance Program as part of the second phase of funding
from the City's Community Development Block Grant (CDBG) Program. The program provided up to
$2,000/month for three months to qualifying households that could not pay rent because of COVID-19 impacts. A
total of 138 households were assisted with these funds.
Engineering Services
The Engineering Department is led by the Engineering Services Director/City Engineer. It consists of four
divisions: capital management,transportation development, environmental programs, and municipal utility.
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Capital management is responsible for the development and implementation of the City's capital improvement
program, which includes the design, inspection, and contract administration of public improvement projects. A
continued priority has been maintaining the Annual Comprehensive Capital Improvement Program document,
which provides a five-year forecast of active capital project endeavors in the City. Engineering Services Capital
Improvement Projects amounting to just over$11 million were completed during Fiscal Year 2020/21. The projects
completed during Fiscal Year 2020/21 include:
• Freeway and Arterial Synchronization Project
• Vineyard Avenue at San Bernardino Road Traffic Signal Modification Project
• Southwest Cucamonga Class I Bicycle Trail Project
• School Crosswalk Improvements Project
• 4'Street Pavement Rehabilitation
• Foothill Boulevard Pavement Rehabilitation, from Milliken Avenue to Monet Avenue
• Hellman Avenue Sidewalk Improvements
• Upper Cucamonga Storm Drain Phase 3
• Church Street Pavement Rehabilitation, from Haven Avenue to Milliken Avenue
• Highland Avenue and Hermosa Avenue,Major Arterial Pavement Rehabilitation
• Asphalt and Concrete Improvements for Tract 18960
• Railroad Crossing Surface Improvement at Arrow Route
• Bus Stop Improvements
• Barrier Replacements for Cucamonga Creek Class 1 Bike Project
• Pacific Electric Trail Storm Drain and Slope Improvements
• Almond Trail Slope Repair
• ADA Ramp Improvements at Various Locations
• Local Overlay and Slurry Seal at Various Locations
• Upgrade Left Turn Phases at Multiple Locations
• Civic Center East Parking Lot electric power switchover to RCMU
• Day Creek Fire Station electric power switchover to RCMU
• Fiber Optic line extension on Foothill Boulevard from Haven Avenue to Fire Station 172
Capital projects anticipated for Fiscal Year 2021/22 include:
• Advance Traffic Management System Phase 2(Design)
• Day Creek Channel Bike Trail Project
• Center Avenue Pavement Rehabilitation
• Rochester Avenue Pavement Rehabilitation from 6'Street to Arrow Route and from Base Line Road to
Highland Avenue
• Foothill Boulevard Pavement Rehabilitation from Monet Avenue to East City Limit
• Upgrade Left Turn Phases at Various Locations
• Local Overlay Projects
• Foothill Boulevard from Milliken Avenue to 1-15 Freeway Pavement Rehabilitation
• Traffic Signal Modification Projects
• Etiwanda Avenue from Arrow Route to Sixth Street Electric and Fiber Extension
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• Fiber Optic line extension on Archibald Avenue from Foothill Boulevard to Base Line Road
• Various fiber optic extensions to provide municipal broadband service to retail and business parks along
Haven Avenue
Transportation development is staffed by a team of engineers and customer-oriented individuals. The division
provides information, direction,and 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 and on-site grading and technical
plan check and permit issuance of these types of projects.
Transportation development is also involved in the construction and operation of traffic control devices and plans
for future traffic and transportation needs. Working closely with Public Works, the section ensures these traffic
control devices are installed correctly per City, State, and Federal standards. Additionally, the section issues
right-of-way permits, handles research requests, and explains Department policies to customers via email,phone,
or public front counter. During Fiscal Year 2020/21, a combined total of 1,749 permits were issued.
Environmental programs are responsible for administering the City's programs,which encourage preserving natural
resources and preventing stormwater pollution, thereby ensuring compliance with State and Federal mandates. In
Fiscal Year 2020/21,this division:
• Provided service to 4,473 participants and processed 234,593 pounds of waste at the Household Hazardous
Waste Collection Facility
• Completed 759 stormwater inspections
• Hosted five virtual field trips to the Environmental Learning Center for 160 students
The Rancho Cucamonga Municipal Utility(the Utility)operates as a small electric utility providing electric service
to commercial and residential developments in portions of the City. The Utility has over 1,700 metered customers
and is continually growing as new development projects are completed. The Utility continues to embark on its
mission to be a greener utility by utilizing renewable energy as part of its energy portfolio. In addition to providing
reliable electricity,the Utility also manages the City's more than 15,000 streetlights. The Utility also partners with
RC Fiber to operate,maintain and construct the City's municipal broadband network infrastructure in key strategic
areas, through a phased approach, to provide high-speed broadband to residents and businesses. This most recent
year saw a rebranding of the network to Rancho Fiber, and the City's private partner, Inyo, also became Onward.
The Utility and RC Fiber continue to partner and work closely with economic development to accelerate the
expansion of the broadband network build-out.
Public Works Services
The Public Works Services Department maintains the City's growing infrastructure of buildings, streets, storm
drains, traffic signals, parks, and landscape improvements. The Department is headed up by the administration
division, responsible for managing three divisions: facilities maintenance, streets, fleet, and storm drains
maintenance, and parks and landscaping maintenance.
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The facilities maintenance division is responsible for the operation and maintenance of the 25 City-owned buildings.
The division also provides technical assistance during the development of new buildings and parks and manages
numerous capital maintenance projects. The Fiscal Year 2020/21 accomplishments include:
• LoanMart Field Lighting Repairs and Replacement To maintain Major League Baseball lighting
standards for playability, the sports lights need to be changed out every two years. The lights were last
replaced in 2020. The 2020 baseball season was canceled because of the COVID-19 pandemic. Due to
non-use for over one year,the sports lighting system was checked,and lamps were replaced and re-aligned
as needed in preparation for the shortened 2021 season.
• City Wide Building De-Contamination— Facilities staff were busy with many decontamination requests
citywide due to the COVID-19 pandemic and possible contamination. Staff purchased many
decontamination machines and related chemicals to complete this ongoing task.
• Bipolar Ionization Air Purification Devices—Installation of these devices in 13 City buildings and 9 Fire
District buildings to help minimize the impacts of COVID-19.
• Central Park Interior Re-Lamp—Most of the interior lamps, incandescent, and fluorescent, were replaced
with energy-efficient LED lamps. This will help with both maintenance and electrical cost for many years.
• Public Safety Facility—Facilities staff assisted with certain elements of the build(security systems, door
hardware, access control) along with the overall construction punch-list and the move-in process.
The street maintenance division performs maintenance in various areas, including roadways, storm drains, traffic
signs, markings, special events, traffic signal systems, and safety lighting. Additional functions include graffiti
abatement, concrete repair, street sweeping, and 24/7 emergency response. This division also oversees fleet
maintenance, vehicle and equipment specifications, and warehouse operations. The Fiscal Year 2020/21
accomplishments include:
• Vehicle Purchases—Purchased three electric vehicles and one stake bed dump truck for Public Works and
one mid-size pickup truck for Engineering.
• Storm Drain Inspections and Cleaning—As required by the Clean Water Act,inspected 4,003 catch basins,
cleaned 371 catch basins,and jetted 17 storm drain lines.
• Citywide Concrete Repair Contract—Concrete repairs, including replacement of damaged curbs,gutters,
sidewalks, and ADA ramps in the Victoria Windrows area north of Base Line Road and west of Victoria
Park Lane, along with other locations within Landscape Maintenance Districts 2 and 4R, was completed.
In addition, a bid process was completed, and a new contract was awarded for sidewalk, curb/gutter, and
residential drive approach repairs within Landscape Maintenance Districts 2 and 4R.
• Traffic Signal Battery Backup System(BBS) Replacement—The City's traffic signals network is 100%
outfitted with the traffic signal BBS which provides power during a power outage and places the intersection
into a four-way red flash. A contract was awarded for Phase 3 of this project. However, construction was
delayed in Fiscal Year 2020/21 due to supply chain issues related to the COVID-19 pandemic.Construction
is expected to commence in early Fiscal Year 2021/22.
The parks and landscape maintenance division maintain over 400 landscaped sites and City parks, Adult Sports
Complex and Epicenter,landscaped facilities,parkways,paseos and median islands,park facilities, citywide trails,
and City-owned trees. The Fiscal Year 2020/21 accomplishments include:
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• The Victoria Groves Restroom Roof Replacement Project was completed. The roof and a few of the
supporting members were damaged during a fire started by arson.Also included within the project's scope
was new facia and nylon underlayment for increased longevity.
• The installation of the National Fitness Campaign's Fitness Court at Central Park was completed Thursday,
January 7th. This project received funding from the CARES Program and a grant from the National Fitness
Campaign. The success of this project is due to the cooperation and quick actions taken by the Community
Services and Public Works Departments. This outdoor fitness facility is truly in a league of its own and will
make a great contribution to the health and wellness of our community.
• In LMD 4R, tube steel fencing was replaced at fourteen locations. This fencing is located at the end
cul-de-sacs separating residential neighborhoods from adjacent arterial streets, providing a sense of
separation and security.
• In Fiscal Year 2018/19,the Architerra Design Group was awarded a new contract to prepare a phasing plan
that included complete construction drawings and specifications for the LMD 2 and LMD 4R Water
Conservation/Landscape Renovation projects.Plans and specifications for the first phases for each of these
projects were completed and went out to bid for construction late in Fiscal Year 2020/21. Contracts have
been awarded to two separate landscape contractors with construction to commence in early Fiscal Year
2021/22. The LMD 4R project includes an update to the existing landscaping along the south side of Base
Line Road, starting at Spruce Avenue and stopping just short of Milliken Avenue, and the LMD 2 project
will renovate the landscape on Kenyon Way between Victoria Park Lane and Lark Drive and continue on
Lark Drive to Rochester Avenue. The existing turf dominant landscaping will be replaced by drought-
tolerant options,including low water use plant material,cobblestone,and decomposed granite.The existing
irrigation system will be modified to increase efficiency and minimize water use. To ensure continuity in
the neighborhoods' appearance, all the mature and healthy trees within the project scope will be left
untouched.
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. Over the next fiscal
year,the City will focus on balancing the development needs in the Southwest Quadrant of the Community.
The Department is nearing completion for a wide variety of projects that were worked on during Fiscal Year
2020/21:
• General Plan Update — In collaboration with all City departments, the community and development
stakeholders gathered together to discuss the future in order to update the General Plan. The
community-based process will set a long-term vision and provide policy direction and guidance to
residents, City staff, decision-makers, and the broader community. The General Plan is anticipated to be
approved by the Planning Commission on November 17, 2021, and will be reviewed by City Council on
December 15,2021.
• Update of the Housing Element—to facilitate the City's Regional Housing Needs Assessment established
by the State and legislation such as SB 9 and SB 330.
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• Outdoor Operations—In response to the COVID-19 pandemic,the Department developed outdoor dining
guidelines allowing businesses to continue operations by allowing dining areas in parking lots under State
COVID mandates.
• Development Code Updates—The Department continues to update the City's Development Code to clarify
standards and respond to changing land use conditions, as well as state legislation. Code updates for
Accessory Dwelling Units and standards for entertainment permits, parking space dimensions, and drive
aisle dimensions were approved during Fiscal Year 2020/21.
• Development of Industrial Standards — the standard establishes a more clear and comprehensive set of
policies and development standards to meet the current market conditions and better fit the needs of the
industrial community and the City's vision.
• Incorporated technology to continue department operations and minimize disruptions to public services and
continue public engagement and participation remotely during Planning Commission and Design Review
meetings in conformance with State COVID-19 stay at home orders.
Building and Safety Services
The Building and Safety Services Department provides application intake, plan review, inspection, and permit
services for construction projects. Our goal is to support and encourage growth and improvement in the City while
ensuring adherence to approved specifications and state and local codes.
The Department continues to enhance its permit software's functionality, which is the foundation of the
Department's online system. During Fiscal Year 2020/21, the Department conducted over 15,000 inspections,
received over 2,000 electronic plan submissions, and issued nearly 5,000 permits.
During Fiscal Year 2020/21, the Department increased its ability to interface and communicate using virtual
technology. All plans and specifications are uploaded electronically,allowing all corrections and communications
to be centrally located and easily available within the permitting system.
The Administrative Team strives to enhance communication with customers on many platforms, including website
development,social media,educational videos,and constant updating of forms and educational literature.This team
responds to all telephone calls for Building and Safety Services and Community Improvement. It uses a highly
successful texting system called Quiq. The Quiq System allows the public to communicate quickly and efficiently
regarding inspection schedules,clarifying needs, and saving time.
The Building Inspection Team provides building and fire inspections for all construction projects on private
property. The team's highly knowledgeable inspectors are involved in industrial sites, commercial and retail
projects,housing tracts and apartment complexes,and work involving mobile home parks,with approximately 20%
of all building inspections performed remotely via cellular devices.Additionally,the inspection team works closely
with the Community Improvement Division,Fire Services, and Police staff to abate properties and mitigate unsafe
buildings in our City.
The Permit Processing Team is involved in receiving applications and issuing thousands of permits each year,
providing customer service to help guide customers through the highly automated system to achieve their goals.
The Quiq texting system has also been added to this group based on its success and high customer approval rating.
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It has proven to be an effective tool for communicating between the public and staff concerning plan check status
and other permit-related questions. During Fiscal Year 2020/21, a new group was formed from existing positions
in Planning, Engineering, and Building and Safety and will operate as a Community Development concierge
service.The group aims to focus on directing the public via phone,email,text,or in-person to staff best able to help
with specific needs and questions. The diversely trained team will also process simple permits, providing an
"over-the-counter" experience, expediting a large sector of small scope work. This new project will ultimately be
instrumental in creating new and improved methods in supporting citizens and developers while alleviating the
volume of work routed to specialty staff in Plan Check.
The Plan Check Team review and approve thousands of projects annually,from room additions to hotels and tenant
improvements to industrial buildings. More than 18,000 applicants have registered in the highly successful
permitting software. Also, this group performs plan reviews for wildland interface, fire sprinkler, and fire alarm
plans for the Fire District and manages a significant number of plans routed to contract services firms used by the
Department due to the high volume of development at this time.
Community Services
The COVID-19 pandemic continues to create significant impacts for the Community Services Department. Indoor
physical distancing guidelines and limitations on social gatherings directly impacted the core services, such as
recreation classes,senior services,theatre performances,youth sports,tiny tot programs,facility rentals,and special
events. However, through creative program development, the City was able to offer modest services to the
community in a safe way.During this period,the doors at Central Park remained open and provided an opportunity
to utilize various services, including Wi-Fi, a computer lab, and a respite location in a comfortable, cool and warm
setting where they could seek assistance during these challenging times. During this time, staff supported over
13,000 visitors,fielded nearly 7,000 phone calls,registered 3,577 participants, and processed 191 park permits.
The James L. Brulte Senior Center at Central Park offered a variety of services, programs, and special events,
allowing the community to engage socially, culturally, and intellectually during the year. While COVID-19 closed
our doors for traditional programming, the Center offered virtual, drive-thru, and unique programming to fit the
needs of the older adult/senior population in Rancho Cucamonga. The Senior Center hosted 11 drive-thru and in-
person events,including but not limited to AARP tax preparation,Car Bingo,Flu Shot Clinic, and a barbeque event
with the Rancho Fire Prevention team. The Community Services Department continued its partnership with the
Family Services Association, our regular nutrition provider, to provide weekly meals for seniors and served over
6,500 seniors meals this fiscal year. Virtual outreach by the Senior Center included workshops such as Medicare
101, gardening 101, slip and fall prevention, and neighbor outreach initiatives. The launch of the virtual senior
center included vaccination information, a virtual health and wellness fair, and ongoing engagement through the
James L. Brulte Senior Center Facebook page.
The Jane Penny Link program for homebound, ill, or isolated seniors increased weekly calls to senior clients and
delivered December holiday bags with hand-knit shawls and blankets, essential items, and grocery store gift cards.
The Senior Center is a vital resource to our senior citizens in Rancho Cucamonga and is made possible through the
support received from hundreds of volunteers and numerous community partners.
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Local families were supported through the RC Learn and Rec program, which was designed to assist
parents/guardians returning to the workplace while children were still learning via Zoom. The program supported
231 youth,providing in-person educational care,supporting distant learning,socialization,and recreation activities.
Also, 895 families in need had access to the City's Food Pantry in connection with nonprofit partners Community
B Connection Services. Additionally, 476 households received complete holiday meals during the Thanksgiving
and Christmas holidays.
Despite the challenges related to COVID-19, virtual and outdoor recreation classes were provided to over
750 residents who registered for classes, including outdoor sports, outdoor and virtual fitness, arts, music, dance,
and gaming/coding classes, just to name a few. The IncredABLES, a socialization-based program supporting
participants and families with special needs,hosted virtual events to maintain connection and engagement virtually
through Zoom parties for bingo, fitness classes, art class, and the annual Prom.
COVID-19 restrictions prevented residents from renting the City's various indoor facilities for events and meetings.
The City utilized these spaces for essential services clients like the Red Cross, San Bernardino County, and
San Bernardino County's Registrar of Voters for blood drives, voting, COVID-19 testing, and vaccinations.
However, the Park spaces were well used by community members for organized sports, recreational play, and
passive use. This increased use kept the Park Rangers busy and engaged with the residents to support their needs
and maintain a positive and safe environment in the parks for all to utilize.
Police Department
During Fiscal Year 2020/21,the Police Department's staffing included 142 sworn officers,42 professional(civilian)
employees, and more than 90 volunteers, including reserves, citizen patrol, equestrian patrol, and explorers. In
addition to basic patrol services, the Rancho Cucamonga Police Department also provides School Resource
Officers, a Bicycle Enforcement Team, a Multiple Enforcement Team (MET), Solution Oriented Policing Team
(SOP), Traffic Division, Detective Bureau, Retail Theft Team (Victoria Gardens), Children and Family Services
and Adult Protective Services (CFS/APS) Follow Up Team, Crime Prevention Team, Behavioral Health (TEST)
Team, Canine Tracking Team, and a Public Information Officer. As the city and its population expand, the Police
Department intends to keep up the current level of service and add additional personnel as needed during the
upcoming fiscal years.
In 2020,the County Department of Behavioral Health began staffing personnel within the station to quickly respond
to calls in the field with Deputies to help citizens with mental health issues. This partnership continues today as
Deputies have found the program extremely helpful and effective. This program, formally known as the Triage
Engagement and Support Team(TEST)program, continues to be grant-funded and focuses on crisis interventions
and engagement. The goal is to strengthen the opportunity for recovery and wellness through intensive case
management.
The SOP Team continues to improve the quality of life issues by addressing homelessness, sex trade crimes, and
bar compliance, as well as conducting Active Shooter training and performing school/business threat assessments.
While engaging in their duties, SOP Deputies work with Community Improvement personnel and the State's
Department of Alcohol Beverage Control to ensure compliance for alcohol-serving businesses. As legislative
changes create new policing challenges,the Department will continue to collaborate to prevent and deter criminal
activity.
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During this fiscal year, the Police Department began occupying the newly built Public Safety Facility on
San Bernardino Road along with the Fire District. The facility was built by the City to house elements of both
entities and provide greater police and fire presence on the west side of the city. The building currently holds the
Department's SOP Team,houses some special equipment, and accommodates meetings and training classes.
Several years ago,the Police Department and Fire District jointly created an Active Shooter Training to help schools
and the community prepare for such an event. The Department also implemented precautionary steps to improve
safety by utilizing School Resource Officers in our schools. The Department shows a uniform presence at each of
the four high schools and assists with middle and elementary schools'concerns. These training and safety measures
are still in place today and continue to provide excellent benefits to the Department, Fire District, schools, and the
public.
The Department continues to utilize Automated License Plate Reader (ALPR) and Public Safety Video Network
(PSVN)technology to create policing efficiencies. Currently,the City has 12 patrol units and two trailers equipped
with cameras.There are also 28 separate intersections that are outfitted with the cameras,with three more additional
intersections coming in the next three months. All captured plates are automatically processed through the law
enforcement database. If the plate captured is a vehicle of interest,both dispatch, and on-duty Deputies are notified
immediately. The City has committed to investment in ALPR technology to deliver exceptional public safety
services by locating and arresting criminals who would have previously traveled through our community
undetected.
In conjunction with ALPRs, the PSVN continues to expand and now has 239 video cameras throughout the city.
The Victoria Gardens Regional Mall,Metrolink Station,Police Station,Epicenter,Archibald Library,Central Park,
Los Amigos Park, and City Hall have been equipped with the system. Recent additions to the system include local
schools. As the school districts implement their camera systems, they are joining the City's network to allow the
Police Department to view events in real-time.There are currently 344 cameras operating within the school system.
The Canine(K9)program continued to be beneficial to the City during Fiscal Year 2020/21.K9 Nix and her handler,
Deputy Allen, continue to handle calls for service involving the tracking of missing persons and criminal suspects
within the city,as well as assisting outside stations and agencies.
Fire District
The Rancho Cucamonga Fire Protection District is responsible for community risk reduction,emergency response,
and emergency management, and disaster resiliency. The District is 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 the community and implement life safety regulations
designed to protect natural resources, secure the community's economic vitality, and improve the quality of life for
the citizens. The Prevention Bureau is engaged with reducing preventable losses due to fire, hazardous materials
releases, industrial incidents, and other unwanted and unplanned business interruptions. The Prevention Bureau is
also responsible for promoting safe and healthy living through continuous targeted and data-driven community
outreach.
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The District's emergency response platform consists of seven paramedic-staffed engine companies and two
paramedic-staffed ladder companies operating out of seven fire stations. As an "all-hazard" agency, crews are
trained and equipped to mitigate various emergencies such as fire suppression,emergency medical services,hazmat,
technical rescue, and tactical response. Resources can be strategically deployed throughout the City to respond to
an emergency quickly and bring it under control. During Fiscal Year 2020/21,the Fire District responded to 16,907
incidents.
The emergency management division is committed to preparing for,responding to,recovering from,and mitigating
new and challenging emergencies and disasters that affect the entire community and surrounding region.
Coordination with public and private community stakeholders reduces the impact of emergencies and disasters,
increases community disaster resiliency, and provides timely economic recovery through comprehensive programs
and plans. In the event of a significant crisis, the Emergency Management Division supports the activation of the
Emergency Operations Center (EOC). The EOC is designed to support the incident command post, collect and
analyze data,maintain the organization's continuity, and disseminate those decisions to all concerned agencies and
individuals. Emergency Management is responsible for coordinating training and exercises to prepare EOC staff to
carry out their active EOC roles.
Library Services
The Library Services Department experienced significant shifts in services during Fiscal Year 2020/21,primarily
driven by the ongoing impacts of the COVID-19 pandemic. Despite in-person use of facilities and resources being
limited due to public health recommendations,the Library successfully pivoted many traditional services to virtual
or curbside delivery models, ensuring access to core Library Services continued without interruption. The Library
checked out approximately 891,000 books, DVDs, CDs, eBooks, and magazines and issued 3,214 new library
cards. Over 4,500 people used a Library computer, and 154 virtual programs were offered by Library
staff. Currently, over 319,000 borrowers hold a Rancho Cucamonga Public Library Card and enjoy access to over
867,000 physical and digital titles and free access to digital devices and robust Wi-Fi.
During Fiscal Year 2020/21,the majority of the Library's in-person programs were transitioned to a virtual format.
Storytimes were offered online using Zoom and YouTube platforms, ensuring this vital early childhood literacy
opportunity remained available to families, and monthly book clubs and literacy training continued virtually,
offering a continued community connection for residents seeking safe interactions with others. The annual Summer
Reading Program (SRP) took place virtually, where more than 1,200 children, teens, and adults tracked almost
20,000 hours of reading online through the Library's eight-week program.The SRP is especially critical to students,
helping them maintain their reading skills during the summer months.
When the COVID-19 pandemic forced public facilities to limit in-person services, the Library began offering
contactless Curbside Pickup Services at both library locations. More than 22,700 residents took advantage of this
service during the year, generating approximately 122,200 holds on physical materials.
This fiscal year many of the Library's traditional materials vendors experienced interruptions to their supply lines
and staffing resources, making it challenging to obtain new physical materials in a timely manner. The Library
launched a new enhanced interlibrary loan service creating access to 9 million additional titles from 66 public and
academic libraries throughout California and Nevada. This service helped fill temporary collection gaps while
supplementing remote learners' access to academic titles by fulfilling more than 2,500 transactions between March
and June 2021.
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In a direct response to the increased demand for online content during the COVID-19 pandemic, the Library
expanded access to downloadable resources in Fiscal Year 2020/21 by expanding its C1oudLibrary
eBook/audiobook collections and their Hoopla video and music streaming service.
To better support the expanding needs of students and jobseekers, the Library launched multiple new online
resources to provide free: online tutoring assistance, resume reviews, skill development,job interview coaching,
and practice tests for academic and career exams.Online resources include Tutor.com,JobNow,LinkedIn Learning,
Learning Express Library, SkillShare, and many more.
Both library facilities were modified to create spaces with improved shelving configurations and foot-traffic paths,
allowing for increased physical distancing, and a remodel of the Biane Library's Teen Scene space expanded
shelving for this popular collection and added new furniture to more fully meet the needs of the library users.
City Management
The City Manager is appointed by and serves at the pleasure of the City Council. 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.
One of those efforts is the Community Affairs Network (CAN), which provides and encourages meaningful
communication that supports Team RC and connects our community. CAN strives to serve as the conduit for
exceptional relationships, trusted information, and meaningful engagement within Team RC and the diverse
community we serve. CAN 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 monthly eReporter digital newsletter; news
releases;media relations,social media,website,RCTV-3,the City's Government Access Channel;City department
digital newsletters,brochures,flyers,encouraging citywide initiative participation through community engagement;
and provides messaging,media relations, and public relations counsel and support to City departments.
As the COVID-19 pandemic continued throughout Fiscal Year 2020/21,public information continued to be critical
for sharing State and County Department of Public Health information regarding changes to public health orders,
restrictions, and subsequent information on the re-opening of various sectors. CAN also turn their attention to
supporting the economic recovery for our business community by crafting messaging for the Chamber of Commerce
to promote a#ShopRC campaign. It was during this period that the majority of PlanRC, the General Plan Update
process community engagement took place. Although in-person outreach was extremely limited due to COVID-19
restrictions, the community adapted and found meaningful ways to participate through digital means. As a city
diverse in ethnicities,cultures, and identities,the engagement efforts for P1anRC were crafted to provide consistent
equitable and inclusive community engagement practices at every step of the way where participants expressed
their visions,collaborated with neighbors, and explored possible innovations in housing,transportation,recreation,
and economic development. Community input was solicited and reflected throughout each phase of the planning
process. In total, P1anRC has received input from over 2,300 community members through online surveys and
virtual meetings and generated over 1.1 million digital impressions through website visits, emails, digital
newsletters, and social media views, despite the in-person restrictions during the bulk of this process.
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In the City Manager's Office, the City 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.
During Fiscal Year 2020/21, as a part of the Compassionate Community's initiative, Healthy RC worked with a
local Girl Scout troop to create a community garden focused on kindness and compassion at John L. Golden
Elementary School. Healthy RC also hosted a variety of virtual mental health events, including the Teen Summit,
which connected over 70 teens to much-needed resources to improve mental health and build community
connections.The City also completed an Electric Vehicle Readiness Plan in order to support the increased presence
of electric vehicles by identifying strategies and opportunities for the strategic placement of EV charging stations.
The City Manager's Office coordinates an 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 the proposed
legislation,and working with legislative representatives and their staff to promote the interests of the community at
the state and federal levels.
This year, 35 bills were tracked during the Fiscal Year 2020/21 Legislative Session, including 13 Assembly Bills
(AB), 15 Senate Bills (SB), and seven Federal bills. Position letters were sent to our legislative representatives,
Assembly and Senate Committees, and, ultimately, the Governor supporting four bills, opposing seven, and
officially watching the remaining bills.
The City Manager's Office also facilitates the Team RC DRIVE initiative, which in March 2021 launched a
City-wide Equity Audit Survey to understand better employee perspectives and experiences related to diversity,
equity, and inclusion. Data will help shape future equity workshops, courses,tools, and practices for Team RC to
build a more diverse, inclusive, and intentional workplace. Lastly, the City Manager's Office oversees the City's
data and performance measurement system. Through a comprehensive approach of purposeful interdepartmental
engagement,each department has been able to identify key performance indicators successfully. This includes data
directly related to their Strategic Services Plan, as well as other performance data for all areas of City operations
such as community development, governance and finance, and health and sustainability.
In its second year of implementation, the RC Data and Performance Measurements team is currently on track to
successfully completing eight quarterly reporting periods. As each department develops the framework to build a
more robust data and performance measurement system, it will allow them to effectively analyze and review
performance and service delivery in their respective teams.
Community Improvement
The purpose of Community Improvement is to increase the stability and maintain the value of neighborhoods in the
City through a compassionate approach to the enforcement of the Municipal Code. Community Improvement
Officers are tasked with determining a root cause for a reported violation and identifying the most effective manner
to resolve the concern. This can include making a referral to public services or non-government organizations to
assist those in the community who do not have the ability or funds to maintain the property. For property owners
unwilling to comply, enforcement efforts can include administrative actions and civil remedies.
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Cost recovery has increased significantly with the establishment of abatement fees for services provided to remove
any nuisance, hazardous, or 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.
During Fiscal Year 2020/21, Community Improvement established a Short-Term Rental Program in response to
increased reports of nuisance activity associated with such land use. This was necessary due to an increase in the
reports associated with guests staying at unpermitted locations,which were difficult to track or locate a responsible
parry. Through permitting such operations, it is possible to monitor the activity through identifiable responsible
parties better and work with web platforms to remove illegal listings.This program is anticipated to be self-funding
through permit fees and administrative penalties.
City Clerk's Office/Records Management Department
The City Clerk's Office/Records Management Department 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 per statutory requirements.
During Fiscal Year 2020/21, the City Clerk's Office/Records Management Department facilitated the Candidate
Nomination Process for the November 3, 2020, Municipal Election for two seats on the City Council
(District 1 &4)and partnered with the County of Registrar Voters Office for the placement and installation of mail
ballot drop-off boxes.
A new agenda automation system was implemented in Fiscal Year 2020/21 to help streamline the process of creating
and publishing staff reports, agendas, agenda packets,and minutes for City Council meetings,including training to
citywide staff on the new system and process.
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
animals' and people's lives. Core responsibilities include animal care, adoptions, community outreach, and public
safety.
During Fiscal Year 2020/21,the Animal Center found new and innovative ways to continue offering all community
services such as animal adoptions, owner surrenders, stray intakes, microchipping services, and other in-person
assistance at a time when most in-person interactions had ceased in many other agencies. The Animal Behavior
Specialist increased the number of proactive animal assessments performed to support the Animal Care Team in
placing pets in the most appropriate homes for each individual family and pet. The Animal Rescue Specialist
continued expanding the Department's network of rescue groups and shelter partnerships, which allowed for an
increased number of dogs to find homes through placement partners.
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The Field Services Division provides prompt and professional assistance to the citizens of Rancho Cucamonga with
a wide variety of animal care and control services. In addition to regular calls for service, the Animal Services
Officers responded to many calls for assistance with community wildlife concerns and participated in Community
meetings to help provide education on co-existing with large and small wild animals.
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 the Council's broader initiatives, including increased
cybersecurity, continued improvement to remote hybrid work capabilities, and expanded access to digital and safe
in-person services in response to COVID-19 precautions and restrictions.
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 2021 Digital Cities Survey for the fourth year running.
During Fiscal Year 2020/21,the Department completed the following key projects:
• Updates to Enterprise Software— Several enterprise software platforms were updated during Fiscal Year
2020/21, including online procurement card management with OneSolution Financials, Laserfiche
integration with Accela to automate record-keeping, and the migration of our online enterprise
GIS environment to an on-premise portal.
• Video management replacement—the legacy video management system for the public safety video network
(PSVN) was upgraded using CARES Act funding to allow for increased storage and expanded access to
public safety personnel.
• Remote Work Support— an upgraded F5 security appliance was added to the City's network to increase
security and remote access to core functions in support of hybrid remote work.
• Expanded Public Access -Qless and Quiq lobby management systems were added to the City's permitting
counters to allow customers to schedule online appointments and receive reminders and manage in-field
inspections via text message.
Finance Department
The Finance Department is responsible for administering financial activities of the City 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 district administration,and treasury management.
The Finance Department applied for and received its 33rd 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 state and local
governments' financial reporting. It is the highest form of recognition in governmental accounting and financial
reporting. Its attainment represents a significant accomplishment by a government and its management. The
Department also applied for and received its 8'consecutive GFOA Distinguished Budget Presentation Award.
xix
The Business Licensing Division ensures compliance with City codes related to business licenses, transient
occupancy tax (TOT), and admission taxes. During Fiscal Year 2020/21, staff processed approximately 11,800
business license applications, inspected 450 businesses,and collected revenues totaling$2,929,918. During Fiscal
Year 2020/21, the City began seeing more business growth activity in many sectors, including home-based
businesses, yet it is still impacted by business closures resulting from the difficult business climate caused by the
COVID-19 pandemic.
The Accounting and Financial Reporting Division assisted with the tracking of various expenditures incurred as a
result of the COVID-19 pandemic to facilitate the eventual reimbursement of eligible costs from FEMA
(for the declared emergency) as well as the CARES Act funding opportunities.
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. The
Department also provides risk management services, including worker's compensation and general liability,
employee wellness, and safety.
During Fiscal Year 2020/21, the Department continued to work on COVID-19 related initiatives to manage
COVID-19 guideline compliance,update policies and procedures,and manage the workplace to ensure employees'
safety. This included disseminating information and updating various policies,including the COVID-19 Pandemic
Policy, the Remote Work Program Policy, and the City's Volunteer Employee System (VEST) to allow healthy
employees to take the COVID-19 test every 30 days pro-actively. The Department ensured compliance with
Cal/OSHA COVID-19 Emergency Temporary Standards, implemented a COVID-19 Vaccine Incentive Program
for all City Employees,and a COVID-19 vaccine mandate for new employees,volunteers,and contract instructors,
and managed the interactive process for vaccine exemption requests. The Department also implemented
COVID-19 related leave policies in conformance with state and federal requirements that allowed for Federal
reimbursement of costs.
In addition, the Department continued to work on recovering costs due to damage of City property; championed
employee wellness initiatives including the Rising Strong workshop, "Know Your Numbers" wellness program,
Biggest Loser Challenge, and Lunch and Learn workshops; and hosted the City's annual health, wellness, and
rideshare fair virtually. Additionally, the Department continued to establish and manage business partner
relationships with City departments and expand social media marketing to improve recruitment efforts.
Procurement Division
The Procurement Division is responsible for procuring services and goods for the best value, at the lowest price,
from the most responsive vendor. The Division acts as the City's centralized procurement agent and authorizes all
City purchases by ordinance requirements. It is also charged with the disposition of surplus and obsolete property.
The Division applied for and received the 2020 Achievement of Excellence in Procurement(AEP)award issued by
the National Procurement Institute, Inc. The continuously evolving AEP criteria are measured by public
procurement best practices. The City of Rancho Cucamonga Procurement Division is one of only 181 agencies in
the United States and Canada, California, and one of only 64 cities in the United States and Canada to receive the
award. This marks the thirteenth consecutive year the City has been the recipient of the prestigious AEP award.
xx
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 for the Fiscal Year ended June 30,2020. The Certificate of Achievement is
a prestigious national award recognizing conformance with the highest standards for the preparation of state and
local government financial reports.
To be awarded a Certificate of Achievement,a government must publish an easily readable and efficiently organized
annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements. The City of Rancho Cucamonga has received a Certificate of Achievement for
Financial Excellence for the last thirty-three consecutive years and believes that our current annual comprehensive
financial report continues to meet the Certificate of Achievement for Excellence in Financial Reporting program's
requirements.
The preparation of this report could not have been accomplished without the dedicated services of the entire Finance
Department. We appreciate and would like to commend all the City departments who assisted and contributed
material to this document. We also recognize and would like to acknowledge the Mayor and members of the
City Council for their interest and dedication in planning and conducting the financial operations of the City.
Respectfully submitted,
w3�
John R. Gillison Tamara L. Oatman
City Manager Finance Director
xxi
CITY OF RANCHO CUCAMONGA
CITY OFFICIALS
JUNE 30, 2021
City Council
L. Dennis Michael Mayor
Lynne B. Kennedy Mayor Pro Tern
Ryan A. Hutchison Council Member
Kristine D. Scott Council Member
Sam Spagnolo Council Member
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 Jim Harrington
City Clerk Janice C. Reynolds
Animal Services Director Veronica Fincher
Community Services Director Jennifer Hunt-Gracia
City Clerk Services Director Linda Troyan
Engineering Services Director/City Engineer Jason Welday
Finance Director Tamara L. Oatman
Fire Chief Ivan Rojer
Human Resources Director Robert Neiuber
Information Technology Director Darryl Polk
Library Director Julie Sowles
Police Chief Ernie Perez
Planning Director Anne McIntosh
Public Works Services Director Bill Wittkopf
xxii
CITY OF RANCHO CUCAMONGA
ORGANIZATION CHART
Citizens
of
Rancho Cucamonga
City Clerk City Council City Treasurer
City
Attorney
City Manager
Administrative Civic and Police Economic and
Services Cultural Services Department Community
Development
Fire
Finance
Community District
Services
Animal Care
Human Library and Services
Resources Services
Community
Innovation and Records Improvement
Technology Management
Building and Engineering Planning Public Works
Safety Services Services
xiii
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, 2020
P. ;I%Ir t
Executive Director/CEO
xxiv
City of Rancho Cucamonga
Annual Comprehensive Financial Report
June 30, 2021
Financial Section
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INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of Rancho Cucamonga, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Rancho Cucamonga, California, (the City) as of and for the year ended June 30, 2021, and the
related notes to financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
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 as of June 30, 2021, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are required to be independent of the City and to
meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our
audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Responsibilities of Management 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; and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a
going concern for twelve months beyond the date of the financial statements.
PrimeGlobal
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Soll&Lunghard,LLP 203 N.Brea Blvd., / 1714.672.0022
99
LSL:9:::
To the Honorable Mayor and Members of the City Council
City of Rancho Cucamonga, California
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with the GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error,and design and perform audit procedures responsive to those risks.Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Other Reporting Responsibilities
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, Fire District Funds and Federal Grants Fund; 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/(asset)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/(asset) and related ratios; and the
schedule of contributions — OPEB as listed in the table of contents be presented to supplement the basic
financial statements. Such information is the responsibility of management and, 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.
2
99
LSL:9:::
To the Honorable Mayor and Members of the City Council
City of Rancho Cucamonga, California
Supplementary 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 combining and individual nonmajor fund financial
statements and schedules are presented for purposes of additional analysis and are not a required part of
the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the 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.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory section and statistical section but does not include the basic financial statements
and our auditor's report thereon. Our opinions on the financial statements does not cover the other
information, and we do not express an opinion or any form of assurance thereon. In connection with our
audit of the financial statements, our responsibility is to read the other information and consider whether a
material inconsistency exists between the other information and the financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in
our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 10, 2021, 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.
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December 10, 2021
3
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4
Management's Discussion and Analysis
This section of the Annual Comprehensive Financial Report of the City of Rancho Cucamonga (City)
presents a narrative overview and discussion of the City's financial activities for the fiscal year ended
June 30, 2021. This discussion and analysis should be read in conjunction with the basic financial
statements and accompanying notes, which follow this section. We hope that the information and the
discussions provide the readers with a clear picture of the City's overall financial condition.
Financial Highlights
• The assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of
resources at the close of the fiscal year by$1,347,878,115, an increase of$50,912,271 for the current
fiscal year, including restatements of $8,618,122 for implementation of GASB Statement No. 84,
Fiduciary Activities.The total net position consisted of$840,460,014 as net investment in capital assets;
$386,503,484 as restricted; and $120,914,617 as unrestricted.
• Of the $50,912,271 total change in net position, governmental activities represented $41,100,679,
business-type activities represented $1,193,470, and restatement of governmental activities for the
implementation of GASB Statement No. 84, Fiduciary Activities represented $8,618,122.
• As of June 30, 2021, the aggregate ending fund balance of the City's governmental funds was
$533,405,518, an increase of $32,819,053 from the prior fiscal year. Including a restatement of
$8,618,122 for the implementation of GASB Statement No.84, Fiduciary Activities. The combined fund
balance consisted of $14,043,749 as nonspendable, $346,580,776 as restricted, $118,452,854 as
committed, $58,619,058 as assigned, and a deficit of$4,290,919 as unassigned.
• At the end of the fiscal year, the General Fund reported a fund balance of $126,756,685, of which
$13,690,749 was nonspendable, $9,631,596 was restricted, $73,280,103 was committed, and
$30,154,237 was assigned.
• The City's capital assets, net of accumulated depreciation and amortization, were $844,216,156, an
increase of $17,134,804 from the prior fiscal year. The total capital assets, net of depreciation, for
governmental activities represented $802,329,668, and business-type activities represented
$41,886,488.
Overview of the Financial Statements
This annual report consists of management's discussion and analysis (MD&A), basic financial statements,
including the accompanying notes to financial statements, required supplementary information, and
combining and individual fund statements and schedules for the nonmajor governmental and fiduciary
funds. The basic financial statements are comprised of three components: 1) government-wide financial
statements, 2)fund financial statements, and 3) notes to financial statements.
Government-wide Financial Statements are designed to provide readers with a broad overview of the
City's finances and are made up of the following two statements: Statement of Net Position and Statement
of Activities. Both statements were prepared using accounting methods like those used by private-sector
businesses, which are the economic resources measurement focus and the accrual basis of accounting.
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.
The Statement of Net Position presents information on the City's assets, liabilities, and deferred outflows
and inflows of resources, with the difference reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether the City's financial position is improving or
deteriorating.
5
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 result in cash flows in future fiscal periods, such as revenues
pertaining to uncollected taxes, expenses pertaining to earned but unused compensated absences, and
incurred but unpaid workers' compensation claims.
Both government-wide financial statements distinguish functions of the City that are principally supported
by taxes and intergovernmental revenues (governmental activities) from other functions that are intended
to recover all or a portion of their costs through user fees and charges (business-type activities).
The governmental activities of the City include general government; public safety for police,fire, and animal
center; community development; community services; and engineering and public works. The
business-type activities of the City include the Municipal Utility, Fiber Optic Network, and Sports Complex.
The government-wide financial statements reflect not only the activities of the City itself
(known as the primary government), but also include the Rancho Cucamonga Public Improvement
Corporation, the Rancho Cucamonga Fire Protection District, the Rancho Cucamonga Library, and the
Rancho Cucamonga Public Financing Authority. Although legally separate, these entities are included as
an integral part of the primary government because the City Council acts as the governing body for each
entity and the sole purpose of each entity is to provide services entirely to and exclusively for the City.
Fund Financial Statements are designed to report information about groupings of related accounts that
are 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
finance-related legal compliance. The funds of the City are divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental funds financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in determining what financial resources are available in the near future to finance
the City's programs.
The governmental funds financial statements are made up of the following: the Balance Sheet and the
Statement of Revenues, Expenditures, and Changes in Fund Balances. Both of these statements were
prepared using the current financial resources measurement focus and the modified accrual basis of
accounting.
The Budgetary Basis Statement of Revenues, Expenditures and Changes in Fund Balance is prepared on
a modified cash basis of accounting that is different from Generally Accepted Accounting Principles
(GAAP). Please see Note 1 of the notes to financial statements for additional information on the basis
difference.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental activities in the
government-wide financial statements. By doing so, readers may better understand the long-term impact
of the government's near-term financing decisions. Both the governmental funds balance sheet and the
governmental funds statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
6
The City maintains many individual governmental funds organized according to their type
(general, special revenue, and capital projects funds). Information is presented separately in the
governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and
changes in fund balances for the General Fund, as well as for the Development Impact Fees, Lighting
Districts, Housing Successor Agency, Fire District, and Federal Grants Special Revenue Funds, which are
major funds. Information from the remaining governmental funds is combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form
of combining statements and schedules.
Proprietary funds are generally used to account for services for which the City charges customers —either
outside customers or other departments/funds of the City. The proprietary funds financial statements
provide the same type of information as shown in the government-wide financial statements, only in more
detail. The City maintains the following types of proprietary funds:
• Enterprise funds are used to report the functions presented as business-type activities in the
government-wide financial statements. The Municipal Utility and Fiber Optic Network enterprise
funds are major funds. The Sports Complex enterprise fund is a nonmajor enterprise fund.
• Internal service funds are used to report the costs which are allocated internally amongst the City's
functions. The City uses internal service funds to account for Equipment and Vehicle Replacement
and Computer Equipment/Technology Replacement, which are presented as governmental
activities in the government-wide financial statements.
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. The City's
private-purpose trust fund, which reports on the activities of the Successor Agency of the Former
Redevelopment Agency, and custodial funds are reported under the fiduciary funds. Since the resources
of these funds are not available to support the City's own programs, they are not reflected in the
government-wide financial statements. The accounting is much like that used for proprietary funds, and
both are prepared using the economic resources measurement focus and the accrual basis of accounting.
Notes to Financial Statements provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements.
Required Supplementary Information, other than Management's Discussion and Analysis (MD&A), is
presented concerning the budgetary comparison schedules for the City's General Fund and major special
revenue funds. Also included in this section are the City's net pension and OPEB liabilities and contributions
related to those plans.
The Combining and Individual Fund Statements and Schedules provide information for nonmajor
governmental funds and fiduciary funds and are presented immediately following the required
supplementary information.
Government-wide Financial Analysis
Analysis of Net Position: Net position may serve over time as a useful indicator of a government's
financial position. The City's assets and deferred outflows of resources exceeded liabilities and deferred
inflows of resources by$1,347,878,115 at the close of the fiscal year.
7
The following table is a condensed summary of the City's government-wide net position:
Net Position
June 30, 2021 and 2020
(In Thousands)
Governmental Business-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Assets:
Current and other assets $ 610,994 $ 550,978 $ 33,762 $ 33,544 $ 644,756 $ 584,522
Net OPEB asset 5,724 4,702 - - 5,724 4,702
Net pension asset 3,691 3,327 185 227 3,876 3,554
Capital assets, net of depreciation 802,330 786,282 41,886 40,799 844,216 827,081
Total assets 1,422,739 1,345,289 75,833 74,570 1,498,572 1,419,859
Deferred outflows of resources 27,863 24,487 591 724 28,454 25,211
Liabilities:
Current and other liabilities 37,465 13,010 2,295 2,129 39,760 15,139
Long-term net pension liabilities 98,243 91,103 2,952 2,637 101,195 93,740
Long-term obligations outstanding 16,126 15,896 12,687 13,179 28,813 29,075
Total liabilities 151,834 120,009 17,934 17,945 169,768 137,954
Deferred inflows of resources 9,179 9,897 200 253 9,379 10,150
Net position:
Investment in capital assets 801,334 784,816 39,126 38,550 840,460 823,366
Restricted 386,152 362,202 352 585 386,504 362,787
Unrestricted 102,103 92,852 18,812 17,961 120,915 110,813
Total net position $ 1,289,589 $ 1,239,870 $ 58,290 $ 57,096 $ 1,347,879 $ 1,296,966
As of June 30, 2021, net investment in capital assets is reported as $840,460,014, which makes up 62.4%
of the City's total net position. Net investment in capital assets reflects the City's investment in capital
assets (e.g., land, infrastructure, building and improvements, vehicles and equipment) less any related
outstanding debt used to acquire those assets. Compared to the prior fiscal year, net investment in capital
assets increased by$17,093,682 or 2.1%. The City uses capital assets to provide services to its residents
and businesses, and, therefore, these assets are not available for future spending. Furthermore, although
the City's investment in capital assets is reported net of related debt, the resources to repay this debt must
be provided from other sources since the capital assets themselves cannot be used to liquidate the debt.
A portion of the City's net position has underlying restrictions on how it can be used. Restricted net position
is reported as $386,503,484 or 28.6% of the City's total net position, which is an increase of$23,716,584
or 6.5% from the prior fiscal year. The increase in restricted net position generally is due to increases in
the fund balances of special revenue funds in the governmental fund statements, such as the Development
Impact Fees special revenue fund, which increased $5,221,562, and the Fire District, which increased
$7,791,216, from the prior fiscal year. The changes in the Development Impact Fees and Fire District
special revenue funds are analyzed in the governmental activities portion of the MD&A. Additionally,
restricted net position increased due to restatements of$8,196,130 for implementation of GASB Statement
No. 84, Fiduciary Activities, which added nonmajor special revenue funds.
The unrestricted net position of $120,914,617 can be used to meet the City's obligations for its
governmental and business-type activities. The unrestricted net position makes up 9.0% of the City's total
net position and is an increase of $10,102,005 or 9.1% from the prior fiscal year. At $102,102,912, the
governmental activities make up most of the total unrestricted net position, and the business-type activities
make up the balance of$18,811,705.
8
Other key changes in the statement of net position are as follows:
• Capital assets are 56.3% of the City's total assets. In the current fiscal year, capital assets
increased by$17,134,804, or 2.1%.The total increase is comprised of an increase in governmental
activities of$16,047,801 and an increase in business-type activities of$1,087,003. These changes
are further analyzed in the capital assets section of the MD&A.
• The City's current and other assets increased by $60,233,477 or 10.3%. The total increase is
comprised of an increase in business-type activities of$217,814 and an increase in governmental
activities of $60,015,663. The main cause for these changes involves fluctuations in cash and
investments and restricted cash and investments. In the current fiscal year, governmental activities
increased total cash and investments by $47,346,430 and restricted cash and investments for the
pension rate stabilization program by $2,541,141. The business-type activities reported an
increase of total cash and investments of$496,133 and a decrease of$1,003,212 in cash held with
fiscal agent due to reimbursement of capital project expenses associated with the build-out of the
fiber optic network expansion in the City. See Note 3 in the notes to financial statements for more
information on cash and investments.
• The governmental activities reported a net OPEB asset, which increased by $1,021,985 from the
prior fiscal year. This increase is due to positive net investment income and favorable actual
actuarial experiences compared to assumptions. See Note 13 in the notes to financial statements
for more information on the City's other post-employment benefits.
• The City's current and other liabilities increased by $24,619,745 or 162.6%. Governmental
activities increased by $24,453,993 due to an increase of unearned revenues of $13,750,060 in
the current fiscal year. Unearned revenues are recorded when receipts are taken before the eligible
activity has occurred. In June 2021, the City received Federal grant revenues of$13,417,765 from
the American Rescue Plan Act which were not spent by the end of the fiscal year but are planned
to be spent during Fiscal Year 2021/22. The business-type activities reported an increase of
$167,752, which is primarily attributed to an increase in deposits collected from customers for
Municipal Utility services.
• The City's net pension liabilities increased by $7,456,125 or 8.0% from the prior fiscal year. This
increase is due to increases of$3,277,693 with the City Miscellaneous Plan, $236,244 with the Fire
District Miscellaneous Plan, and $3,942,188 with the Fire District Safety Plan. See Note 12 in the
notes to financial statements for more information on the City's pension plan obligations.
9
Analysis of Changes in Net Position: The following table presents condensed information showing how
the City's net position changed during the most recent fiscal year. As previously stated, 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.
Changes in Net Position
Year Ended June 30, 2021 and 2020
(In Thousands)
Governmental Business-Type
Activities Activity Total
2021 2020 2021 2020 2021 2020
Revenues:
Program Revenues:
Charges for services $ 30,313 $ 30,593 $ 13,004 $ 12,962 $ 43,317 $ 43,555
Operating grants and contributions 15,902 12,063 - - 15,902 12,063
Capital grants and contributions 24,769 14,635 1,443 4,050 26,212 18,685
General Revenues:
Property taxes 91,686 77,022 - - 91,686 77,022
Admissions tax - 4 33 140 33 144
Transient occupancy taxes 2,727 3,511 - - 2,727 3,511
Sales taxes 34,566 29,480 - - 34,566 29,480
Franchise taxes 9,229 8,579 - - 9,229 8,579
Intergovernmental- Motor vehicle in-lieu 129 142 - - 129 142
Use of money and property 5,957 13,422 (12) 748 5,945 14,170
Other 7,576 6,217 11 - 7,587 6,217
Total Revenues 222,854 195,668 14,479 17,900 237,333 213,568
Expenses:
General government 22,450 19,287 - - 22,450 19,287
Public safety-police 44,201 41,859 - - 44,201 41,859
Public safety-fire protection 43,820 42,714 - - 43,820 42,714
Public safety-animal center 2,653 3,329 - - 2,653 3,329
Community development 21,053 18,943 - - 21,053 18,943
Community services 12,922 17,634 - - 12,922 17,634
Engineering and public works 33,574 35,467 - - 33,574 35,467
Interest on long-term debt 270 259 - - 270 259
Municipal Utility - - 10,747 10,642 10,747 10,642
Fiber Optic Network - 1,045 736 1,045 736
Sports Complex - - 2,303 2,858 2,303 2,858
Total Expenses 180,943 179,492 14,095 14,236 195,038 193,728
Excess of Revenues Over Expenses 41,911 16,176 384 3,664 42,295 19,840
Transfers (810) (1,289) 810 1,289 - -
Special item - - - - - -
Change in Net Position 41,101 14,887 1,194 4,953 42,295 19,840
Net Position at Beginning of Year 1,239,870 1,224,983 57,096 52,143 1,296,966 1,277,126
Restatement of Net Position 8,618 - - - 8,618 -
Net Position at End of Year $ 1,289,589 $ 1,239,870 $ 58,290 $ 57,096 $ 1,347,879 $ 1,296,966
10
Governmental Activities
For the fiscal year ended June 30, 2021, total revenues from governmental activities were $222,853,564,
while total expenses were $181,752,885. Of the $180,943,128 total functional expenses, 16.1% were
directly funded by program revenues, and taxes and other general revenues funded the remaining 83.9%.
Program revenues are resources obtained from outside of the City and charges for services. They include,
primarily, amounts received from those who purchase, use, or directly benefit from a program or grants and
contributions that are restricted to specific programs
The following charts provide a snapshot of revenues from the City's governmental activities for the Fiscal
Years 2020/21 and 2019/20, showing the primary revenue sources as percentages. Following the charts
is an analysis of the changes in revenues from the prior fiscal year to the current fiscal year.
Governmental Activities
Fiscal Year 2020121
$222,853,564
Taxes
62.0%
Charges for Services
13.6%
Operating
Contributions and
Grants
7.1%
Capital Contributions
Other General and Grants
Revenues Use of Money and 11.1%
3.5% Property
2.7%
Governmental Activities
Fiscal Year 2019120
$195,666,979
Taxes
60.6%
Charges for
Services
15.6%
Operating
Contributions
and Grants
6.2%
Capital Contributions
and Grants
Other General Use of Money and 7.5%
Revenues Property
3.2% 6.9%
11
Revenues from taxes in the amount of$138,207,651, charges for services in the amount of$30,313,276,
and capital contributions and grants of $24,768,600 are the largest revenue sources for governmental
activities. Taxes consist of property taxes, sales taxes, franchise taxes, transient occupancy taxes, and
other taxes, the largest of which are property and sales taxes.
The following table is a condensed summary of the City's governmental tax revenues for Fiscal Years
2020/21 and 2019/20:
Governmental Activities
Taxes
2021 2020
Property taxes $ 91,685,839 $ 77,021,958
Sales taxes 34,565,886 29,480,466
Franchise taxes 9,229,371 8,579,436
Transient occupancy taxes 2,726,555 3,511,232
Other taxes - 3,728
$ 138,207,651 $ 118,596,820
Property taxes increased by $14,663,881 or 19.0% from the prior year due primarily to a change in the
allocation methodology for distributing residual tax increment from former Redevelopment Agencies by the
County of San Bernardino. The change in the allocation methodology increases the share of residual
receipts available to entities that receive pass-through payments. Going forward, all taxing entities will
receive residual receipts in accordance with their pro rata property tax shares. As a result, the Fire District
now receives a share of the residual receipts, which resulted in an increase of$7,538,557. Additionally,
there was an increase due to the implementation of GASB Statement No. 84, Fiduciary Activities, as funds
previously reported as fiduciary funds met the criterion for special revenue funds. This includes
PD 85 Maintenance for $1,163,371; CFD 2000-03 Park Maintenance for $531,929; CFD 2017-01 No.
Etiwanda for$3,016; and CFD 2018-01 Empire Lakes for$112,093, which are nonmajor special revenue
funds.
Sales taxes increased by $5,085,420 or 17.3% over the prior year due to loosening health and safety
restrictions related to the COVID-19 pandemic stay-at-home orders and business closures. Sales tax during
Fiscal Year 2020/21 was greatly improved due to increased distributions from the County of San Bernardino
sales tax pool as consumers shifted their purchases to online retailers. Additionally, towards the end of the
fiscal year, the City's local economy began to emerge from COVID-19 and experienced positive returns
from most of general consumer good businesses including electronic appliances, department and specialty
stores, home furnishings, and family and women's apparel. Consumers also began dining out again,which
resulted in a boost in casual, fast casual, and quick service restaurant activity. However, there are still
negative impacts to transient occupancy taxes, which decreased $784,677 or 22.3% from the prior year.
The impacts on sales and transient occupancy taxes associated with COVID-19 will continue to be
monitored.
The net decrease in charges for services of$279,939 or 0.9% consists of the following:
• An increase in general government charges for services primarily related to an increase of
$307,660 in public art in-lieu fees collected from development for the installation and maintenance
of public art in the City.
• An increase in public safety-police charges for services of $579,859 due to the City resuming
issuance of vehicle citations which were suspended in the prior fiscal year due to COVID-19.
• A decrease of community services charges for services of$1,819,822 due to remaining COVID-19
restrictions on programs and activities for library and community services.
12
The net increase in operating contributions and grants of$3,839,307 or 31.8%, was primarily attributed to
the City receiving $5,665,791 of Federal grant funding related to the Coronavirus Aid, Relief, and Economic
Security Act or the CARES Act. This included $2,167,193 used to provide rent relief and to support City
operations and $3,498,598 used for eligible capital projects that meet the criterion for the CARES Act.
The net increase in capital contributions and grants of$10,134,630 or 69.3% consisted of:
• An increase of$2,149,539 for SIB 1 revenues from the State of California related to the construction
of the Etiwanda Grade Separation capital project.
• An increase of$2,192,113 in local and regional transportation impact fees collected to mitigate the
impacts of development in the City.
• Capital contributions of $6,538,500 for City infrastructure, such as fiber optic networks, storm
drains, traffic signals, and streets and roads.
The following chart provides a snapshot of the City's governmental activities for Fiscal Years 2020/21 and
2019/20, showing the expenses by function.
Governmental Expenses By Function
(In Thousands)
$45,000
$40,000 —
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
General Public safety- Public safety- Public safety- Community Community Engineering Interest on Transfers to
government police fire protection animal center development services and public long4erm debt business4ype
works activities
■June 30,2021 $22,450 $44,201 $43,820 $2,653 $21,053 $12,922 $33,574 $270 $810
June 30.2020 $19;287 $41;859 $42;714 $3;329 $18;943 $17;634 $35;467 $259 $1 289
The City's governmental activities expenses increased by $1,451,779 or 0.8% from the prior fiscal year.
The total net increase was attributed to increases in the general government of $3,163,847, public
safety—police of$2,341,728, and community development of$2,110,832. These increases were offset by
decreases in community services of$4,712,003 and engineering and public works of$1,893,686. Interest
on long-term debt increased by$11,117, and transfers to business-type activities decreased by$479,429.
13
The following is a summary of the changes in governmental activities expenses:
• General government increased by $3,163,847 or 16.4% from the prior fiscal year due to CARES
Act spending of $2,009,109 in the Federal Grants special revenue fund, which, as previously
discussed, was used to provide rental relief to residents and local business.
• Public safety — police increased by $2,341,728 or 5.6% from the prior fiscal year, mainly due to
increases in the public safety contract costs between the City and the San Bernardino County
Sheriff's Department.
• Community development increased by $2,110,832 or 11.1% from the prior fiscal year due to net
increases in expenditures in the Landscape Maintenance Districts and Community Development
Block Grant nonmajor special revenues funds. Expenditures for the Landscape Maintenance
Districts increased by $1,002,153 primarily due to increased landscaping and park maintenance
services with service providers over the prior year. Expenditures for the Community Development
Block Grant increased by $726,084 entirely due to Federal grant funding of $932,823 from
CDBG-CV for rental assistance through the CARES Act.
• Community services decreased by $4,712,003 or 26.7% from the prior fiscal year due to net
decreases in functional expenses from recreation and library services as a result of the impacts of
the COVID-19 pandemic.
• Engineering and public works decreased by $1,893,686 or 5.3% due to a decreased allocation of
capital asset expenses primarily due to disposals of capital assets in the prior fiscal year.
• Transfers to business-type activities decreased by$479,429 or 37.2%from the prior fiscal year due
to a decreased General Fund transfer to the Sports Complex nonmajor enterprise fund in the
amount of$541,513 related to closures caused by the COVID-19 health and safety restrictions.
Business-Type Activities
The $15,288,299 combined revenues, including transfers from the governmental activities, of the City's
business-type activities were $1,193,470 more than the expenses of $14,094,829. Since the proprietary
funds provide the same information found in the government-wide statements, a more detailed discussion
of the City's business-type activities is found in the financial analysis of the City's funds.
Financial Analysis of the City'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.
On June 30, 2021, the City's governmental funds reported combined fund balances of$533,405,518, an
increase of $32,819,053 from the prior fiscal year, including a restatement of $8,618,122 for the
implementation of GASB Statement No. 84, Fiduciary Activities. Of the total fund balance, $14,043,749
was nonspendable, associated with prepaid costs, deposits, and advances to other funds; $346,580,776
was classified as restricted for specific purposes; $118,452,854 was committed by the City Council; and
$58,619,058 was assigned by the City Manager for certain uses and functions. The deficit of$4,290,919
unassigned fund balance gets eliminated with the receipt of future funds, except for the Lighting Districts
Fund special revenue fund, which is eliminated as repayment of the interfund advances occurs. See
Note 6 in the notes to financial statements for more information on interfund advances.
14
Governmental functions revenues totaled $213,381,181, while expenditures were $187,213,594. Other
financing sources, such as transfers in from other funds and proceeds from the sale of capital assets,
totaled $5,785,526 and other financing uses totaled $7,752,182 in the form of transfers out to other funds.
The General Fund is the general operating fund of the City. On June 30, 2021, the General Fund reported
a total fund balance of$126,756,685,consisting of$13,690,749 as nonspendable,$9,631,596 as restricted,
$73,280,103 as committed,and$30,154,237 as assigned. More detailed information on these fund balance
classifications can be found in Notes 1 and 16 in the notes to financial statements.
The following table presents the summary of revenues and expenditures of the General Fund for Fiscal
Years 2020/21 and 2019/20:
Revenues and Other Financing Sources
2021 2020 %Change
Revenues:
Property taxes $ 31,798,334 $ 29,813,457 6.7%
Sales taxes 34,565,886 29,480,466 17.3%
Transient occupancy taxes 2,726,555 3,511,232 -22.3%
Franchise taxes 7,511,192 7,065,844 6.3%
Other taxes - 3,728 -100.0%
Licenses and permits 5,667,304 5,398,038 5.0%
Intergovernmental 688,302 711,951 -3.3%
Charges for services 4,973,242 5,173,453 -3.9%
Use of money and property 814,603 2,725,049 -70.1%
Fines and forfeitures 1,227,698 764,796 60.5%
Contributions 17,698 84,534 -79.1%
Miscellaneous 3,272,491 3,443,205 -5.0%
Total Revenues 93,263,305 88,175,753 5.8%
Other Financing Sources:
Transfers in 4,265,848 3,861,606 10.5%
Sale of capital assets 23,317 75,954 -69.3%
Total Other Financing Sources 4,289,165 3,937,560 8.9%
Total Revenues and Other Financing Sources $ 97,552,470 $ 92,113,313 5.9%
Expenditures and Other Financing Uses
2021 2020 %Change
Expenditures:
General government $ 14,610,180 $ 13,957,971 4.7%
Public safety-police 43,239,756 40,850,910 5.8%
Public safety-animal center 2,399,155 3,031,419 -20.9%
Community development 6,458,490 6,022,404 7.2%
Community services 3,459,866 4,401,161 -21.4%
Engineering and public works 11,440,332 12,070,604 -5.2%
Capital outlay 6,833,492 5,317,991 28.5%
Debt service-interest and fiscal charges 8,195 9,196 100.0%
Total Expenditures 88,449,466 85,661,656 3.3%
Other Financing Uses:
Transfers Out 3,605,636 4,395,177 -18.0%
Total Expenditures and Other Financing Uses $ 92,055,102 $ 90,056,833 2.2%
15
The following is a summary of the significant changes in General Fund revenues, expenditures, and other
financing sources and uses:
• Taxes totaled $76,601,967 and accounted for 78.5% of the total revenues and other financing
sources, and they increased by $6,727,240 from the prior fiscal year. Property taxes have
increased by $1,984,877 due to steady growth in the assessed value of properties, and sales tax
has increased by $5,085,420 after a significant decline in the prior year due to the impacts of the
COVID-19 pandemic stay-at-home orders and business closures. Other taxes are relatively
unchanged, but transient occupancy taxes decreased $784,677 as the revenue source was
adversely impacted by COVID-19 related issues for most of the Fiscal Year 2020/21.
• Licenses and permits increased by $269,266 or 5.0% due to development-related activities;
however, these revenues are volatile since they depend on the timing and scope of development
projects within the City in a given fiscal year.
• Use of money and property decreased by $1,910,446 or 70.1% due to a temporary adjustment to
bring investments to fair value at the end of the fiscal year. These changes are unrealized since
no investments were sold.
• Fines and forfeitures increased by$462,902 or 60.5% due to the suspension of administrative and
parking citations issued by the City and the Franchise Tax Board's intercept program for overdue
citations by the State ending in the Fiscal Year 2020/21.
• Expenditures for the general government function reported an increase of$652,209 or 4.7% from
the prior fiscal year. This change is primarily due to increases in personnel services costs, which
included a COVID-related surge in unemployment insurance of$329,637.
• Public safety — police increased by $2,388,846 or 5.8% from the prior fiscal year, mainly due to
increases in the public safety contract costs between the City and the San Bernardino County
Sheriff's Department.
• Public safety — animal center decreased $632,264 or 20.9% from the prior fiscal year due to a
$515,401 reduction in personnel costs due to a reduction in part-time staff due to reduced operating
hours as a result of the COVID-19 pandemic.
• Community services decreased $941,295 or 21.4% from the prior fiscal year due to reductions in
personnel costs of$595,098 as well as in operations and maintenance and contractual services of
$307,457 as a result of COVID-19 pandemic restrictions adversely impacting service levels and
requiring closure of many Community Services facilities throughout the fiscal year.
• Engineering and public works decreased $630,272 or 5.2% from the prior fiscal year due to
decreases in operations and maintenance and contractual services of$432,251 due to certain City
facilities being closed throughout the fiscal year as a result of the COVID-19 pandemic.
• Capital outlay increased $1,515,501 or 28.5% from the prior fiscal year due primarily to increased
expenditures of$1,585,870 for the construction of the public safety facility.
The Development Impact Fees Fund accounts for the receipts from development impact fee revenue used
to defray all or a portion of the cost of public facilities as a result of development. The fund balance was
$69,635,049, an increase of$5,221,562 or 8.1%from the prior fiscal year. Total revenues of$12,121,671
increased by $1,645,073, and total expenditures of $6,999,549 increased by $5,118,924 from the prior
fiscal year. Although revenues exceeded expenditures in the current fiscal year, it is normal for the City to
accumulate resources to complete identified capital projects over a period of time.
16
The Lighting Districts Fund accounts for the costs of providing street lighting throughout the City. The fund
balance was a deficit of $4,276,307 due to interfund advances as previously mentioned, which is an
increase of$610,347 or 12.4% from the prior fiscal year. Total revenues of$2,150,670 consisted primarily
of special assessments levied against the benefiting property owners, and total expenditures of$1,876,552
were primarily electrical utilities. Additionally,there were transfers from the General Fund for$336,229 that
partially support certain street lighting districts' operations.
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 the interest
received from the notes and loans receivable. The fund balance was $139,198,670, a decrease of
$494,825 or 0.4% from the prior fiscal year. Total revenues of$108,533 were primarily from investment
earnings and were offset by total expenditures of$603,358 for administration.
The Fire District Fund accounts for the revenues received and disbursements made by the
Rancho Cucamonga Fire Protection District while providing emergency and non-emergency services to the
community. The fund balance was $88,134,204, which increased by $7,791,216 or 9.7% from the prior
fiscal year. Total revenues were $57,664,353, which were predominantly generated by property taxes
which were partially enhanced during the current fiscal year due to the change in allocation methodology
for residual receipts mentioned earlier. Total expenditures of $50,144,975 were incurred to provide fire
protection and suppression services, including $28,857,022 in personnel costs, which were the
Fire District's largest expenditure. Additionally, the total expenditures included $5,377,921 of capital outlay
expenditures for the new Public Safety Facility that will provide police and fire protection services to the
west-side of the City and was completed during Fiscal Year 2020/21.
Proprietary Funds. The City's proprietary funds provide the same type of information as in the
business-type activities column of the government-wide financial statements. They consist of four
enterprise funds and two internal services funds. The Municipal Utility and Fiber Optic Network enterprise
funds are considered to be major funds.
The following table summarizes the operating results of the City's four enterprise funds:
Business-type Activities
Change in Net Position
For the Fiscal Year Eneded June 30,2021 and 2020
Municipal Utility Fiber Optic Network Sports Complex REGIS Connect
2021 2020 2021 2020 2021 2020 2021 2020
Operating revenues $12,663,515 $12,389,983 $ 98,625 $ 86,646 $ 240,089 $ 479,896 $ $
Operating expenses 10,747,217 10,641,764 595,946 294,863 2,283,931 2,838,486 270
Operating income(loss) 1,916,298 1,748,219 (497,321) (208,217) (2,043,842) (2,358,590) (270)
Net nonoperating revenues
(expenses) (11,742) 626,075 (436,251) (315,321) 13,698 121,692 -
Capital contributions 488,689 3,634,742 954,184 415,493 - - -
Transfers in - - 934,831 939,603 1,197,246 1,738,759 18,204
Transfers out (1,322,320) (1,407,380) - - - - - -
Change in net position $ 1,070,925 $ 4,601,656 $ 955,443 $ 831,558 $ (832,898) $ (498,139) $ $ 17,934
Municipal Utility
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 operating revenues totaled $12,663,515, a slight increase of$273,532 or
2.2% from the prior fiscal year due to an increase in receipts from sales and service charges. The total
operating expenditures were $10,747,217, which increased $105,453 or 1.0% from the prior fiscal year.
Municipal Utility nonoperating revenues and expenses decreased by $332,043 due to less investment
income received during the fiscal year and a temporary adjustment to bring investments down to fair value
17
at the end of the fiscal year. Capital contributions decreased by $3,146,053 due to donated infrastructure
from developers in the prior year. Capital contributions are nonrecurring transactions.
Fiber Optic Network
The Fiber Optic Network Fund accounts for receipts from user charges and leases for conduit and fiber
access,and costs associated with the City's existing utility, information technology, and traffic fiber conduits.
The operating revenues totaled $98,625, a slight increase of$11,979 or 13.8% from the prior fiscal year.
The increase was due to lease revenues from a subscription agreement between the City and a local
internet provider. These revenues have been committed as a revenue source for the repayment of the
2019 Lease Revenue Bonds, which provided bond proceeds to further expand the City's existing Fiber
Optic Network.
Operating expenses totaled $595,496 for the Fiber Optic Network, which is an increase of $301,083 or
102.1% from the prior fiscal year. This increase is attributed to operational and contractual services which
do not meet the criterion for capitalization with the expansion of the Fiber Optic Network.
Nonoperating expenses of$442,007 consisted of interest payments for the 2019 Lease Revenue Bonds.
During the fiscal year, the General Fund transferred $934,831 to the fund for debt service on these bonds
and has assigned$2,314,213 in fund balance to repay future debt service until lease revenues are projected
to be sufficient.
The fund reported$954,184 in contributed capital for fiber optic infrastructure. This infrastructure expanded
the City's existing fiber optic network and provided high-speed internet access to new communities. These
infrastructure assets have been placed into service in the current fiscal year.
Other Proprietary Funds
The Sports Complex enterprise fund is nonmajor for financial reporting purposes; however, it is reported
individually on the statement of net position and statement of revenues, expenses and changes in fund net
position of the proprietary funds in the basic financial statements. Operations for the City's REGIS Connect
enterprise fund ceased at the end of the prior fiscal year.
The Equipment and Vehicle Replacement and the Computer Equipment/Technology Replacement internal
service funds are reported as a combined total on the statement of net position and statement of revenues,
expenses and changes in fund net position of the proprietary funds. More detailed information on these
funds can be found in the combining statement of net position and statement of revenues, expenses and
changes in fund net position for the internal service funds.
General Fund Budgetary Highlights
During the fiscal year, with the City's staffs recommendation, 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 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 the City Council approves either increase or decrease appropriations.
On June 30, 2021, the General Fund's actual revenues and other financing sources were higher than the
final adjusted budget, while actual expenditures with encumbrances and other financing uses were lower
than the final adjusted budget. The following table summarizes the operating results on a budgetary basis
for the City's General Fund:
18
Budgetary Operating Results- General Fund
Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
Revenues and Other Financing
Sources:
Taxes $ 69,192,630 $ 71,070,340 $ 76,601,967 $ 5,531,627
Licenses and permits 4,672,200 4,907,470 5,667,304 759,834
Intergovernmental 660,030 830,420 688,302 (142,118)
Charges for services 7,626,520 4,416,490 4,973,242 556,752
Use of money and property 3,290,280 1,312,660 814,603 (498,057)
Fines and forfeitures 1,151,200 1,027,210 1,227,698 200,488
Contributions 109,000 28,100 17,698 (10,402)
Miscellaneous 3,740,280 4,206,360 3,272,491 (933,869)
Transfers in 1,727,040 4,347,600 4,265,848 (81,752)
Sale of capital assets 50,070 25,990 23,317 (2,673)
Total Revenues and Other
Financinq Sources $ 92,219,250 $ 92,172,640 $ 97,552,470 $ 5,379,830
Expenditures with Encumbrances
and Other Financinq Uses:
General government $ 16,102,760 $ 15,528,770 $ 15,056,020 $ (472,750)
Public safety - police 45,201,630 45,033,580 43,248,201 (1,785,379)
Public safety - animal center 3,151,730 2,604,200 2,399,155 (205,045)
Community development 5,184,460 7,596,440 7,386,196 (210,244)
Community services 8,119,410 3,732,480 3,595,357 (137,123)
Engineering and public works 12,614,970 12,313,320 11,456,405 (856,915)
Capital outlay 3,086,000 8,361,690 7,832,830 (528,860)
Interest and fiscal charges 8,200 8,200 8,195 (5)
Transfers out 3,926,670 4,002,740 3,605,636 (397,104)
Total Expenditures with
Encumbrances and Other
Financing Uses $ 97,395,830 $ 99,181,420 $ 94,587,995 $ (4,593,425)
Major revenue variances at the end of the fiscal year were as follows:
• The total final budget for revenues and other financing sources was $46,610 less than the original
budget. This net decrease reflects increases in budgets for sales and transient occupancy taxes
of$1,877,710,which were significantly impacted by the COVID-19 pandemic economic impacts at
the start but improved towards the end of the fiscal year. There were also increases for transfers
from the Federal Grants special revenue fund for reimbursements of eligible expenditures related
to the CARES Act for operations and capital projects. These increases were largely offset by
decreases of $3,210,030 for charges for services and $1,977,620 for the use of money and
property. The reduction in charges for services is attributed to revenues budgeted for community
services being unchanged to start Fiscal Year 2020/21 due to uncertainty with what services might
be offered as revised COVID-19 guidelines and plans were implemented throughout the fiscal year.
The decrease in the use of money and property is attributed to weakening interest rates on
fixed-income investments and securities experienced during Fiscal Year 2020/21.
19
• Total taxes were $5,531,627 better than the final budgeted amount of$71,070,340. This increase
is primarily related to sales taxes which is $4,671,066 more than the budgeted amount due to
changes in health and safety restrictions and increases to the County of San Bernardino sales tax
pool from online retailers. Property taxes was $512,354 more than budgeted due to growth in the
property tax base.
• Licenses and permits were $759,834 better than the final budgeted amount of$4,907,470 due to
development-related activities being more than expected. Additionally, charges for services were
$556,752 better than the final budgeted amount of $4,416,490 due primarily to plan check and
engineering fees. These revenues are derived from development-related activities and can be
volatile due to the scope and size of the development projects and services in a given fiscal year.
• Use of money and property was $498,057 less than the final budgeted amount of$1,312,660 due
to the temporary adjustment to bring investments to fair value at the end of the fiscal year. These
changes are not budgeted because they do not provide useable resources for the City.
• Miscellaneous revenues were $933,869 less than the final budgeted amount of$4,206,360 due to
the volatility of the revenue source and the inability to budget for all receipts. Included in the
variance is$352,430 for repayment of interfund advances from the Fire District which are budgeted
to show the inflow of resources available for budgeted expenditures.
Major expenditure variances at the end of the fiscal year are as follows:
• The total final budget for expenditures with encumbrances and other financing uses was
$1,785,590 more than the original budget. During the fiscal year, the community development
budgets increased by$2,411,980, mainly due to the General Plan, and capital outlay increased by
$5,275,690 due to the budgeting of the Public Safety Facility. These increases were offset by
community services, which decreased by $4,386,930 due to decreases as previously discussed
from reducing budgets as revised COVID-19 guidelines and plans were implemented throughout
the fiscal year.
• Public safety— police was $1,785,379 better than the final budgeted amount of $45,033,580 due
to the actual expenditures related to the public safety contract with the San Bernardino County
Sheriff's Department being less than anticipated due to staffing credits resulting from vacancies
and staff being out due to injuries.
• Engineering and public works were $856,915 better than the final budged amount of$12,313,320
due to the actual expenditures related to contractual services, such as landscaping and
maintenance services for parks and city facilities, being less than anticipated. Additionally,the City
has budgeted contractual and consulting-related services for the formation of a citywide parking
district which was not started before the end of the fiscal year.
20
Capital Assets and Debt Administration
Capital Assets
The City's investment in capital assets for its governmental and business-type activities amounted to
$844,216,156, net of accumulated depreciation and amortization.
The table below presents summary information on the City's capital assets.
Capital Assets
For the Year Ended June 30, 2021 and 2020
(Net of Depreciation, In Thousands)
Governmental Business-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Land $ 100,707 $ 98,139 $ 5,451 $ 5,451 $ 106,158 $ 103,590
Right-of-way 237,013 237,013 - - 237,013 237,013
Construction in progress 17,629 17,020 3,407 4,994 21,036 22,014
Buildings improvements 153,732 144,737 5,162 5,594 158,894 150,331
Improvements other than buildings 23,248 24,522 2,104 2,233 25,352 26,755
Equipment and vehicles 11,358 12,076 136 153 11,494 12,229
Furniture and fixtures 124 230 - - 124 230
Infrastructure 258,306 252,109 25,626 22,374 283,932 274,483
Intangible 213 436 - - 213 436
Total $ 802,330 $ 786,282 $ 41,886 $ 40,799 $ 844,216 $ 827,081
Major capital asset activities during the year are as follows:
Governmental Activities
• Land increased by$2,568,583 from the purchase of vacant land that will be used for future capital
projects.
• Construction in progress increased by$609,596, which is the net of$24,668,080 in increases and
$24,058,484 of assets placed into service or disposed of during the current fiscal. Significant
projects during the fiscal year were the construction of the new Public Safety Facility, a storm drain
project on Hellman Avenue, and the Etiwanda Avenue Grade Separation. The new Public Safety
Facility and storm drain projects were completed during the fiscal year, placing $15,885,201 of
building improvements and $3,172,574 of infrastructure capital assets into service, respectively.
The Etiwanda Avenue Grade Separation will provide an overcrossing for the SCRRA/BSNF track
and improve traffic circulation and vehicle and rail safety in the area and amounted to $9.5 million
in construction in progress in the current fiscal year.
• Total capitalized infrastructure assets amounted to $258,304,714 net of accumulated depreciation.
During the current fiscal year, the City reported $6,538,500 in contributed capital assets, which
were infrastructure assets donated from developers upon completing development projects.
• The City reported $21,170,948 in depreciation expense.
Business-type Activities:
• Construction in progress decreased by$1,586,767,which is a net of$967,478 in additions primarily
from progress on the fiber optic network and various municipal utility line extensions and
$2,554,245 being placed into service. The capital assets being placed into service include
21
completed sections of the fiber optic network totaling $1,573,292 and various municipal utility line
extensions amounting to $980,953.
• In addition to capital projects placed into service from construction in progress, the Municipal Utility
increased infrastructure by $1,152,469, including $386,738 in donated infrastructure. The Fiber
Optic Network fund reported $954,184 in donated infrastructure.
• Depreciation expense reported for the Municipal Utility is $1,252,718, Fiber Optic Network is
$174,374, and Sports Complex is $560,035.
Additional information on the City's capital assets can be found in Note 5 of the notes to financial
statements. Furthermore, significant commitments that include construction contracts are identified in Note
15 of the notes to financial statements.
Debt Administration
As of June 30, 2021, the City had $28,813,452 in debt outstanding, net of unamortized premiums and
discounts, not including net pension liabilities.
A 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 30,2021 and 2020
(In Thousands)
Governmental Business-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Capital Leases(Note 7) $ 996 $ 1,466 $ - $ - $ 996 $ 1,466
Lease Revenue Bonds(Note 7) - - 12,687 13,179 12,687 13,179
Advances from Successor Agency(Note 8) 3,954 3,954 - - 3,954 3,954
Compensated Absences(Note 9) 8,617 7,755 - 8,617 7,755
Claims and Judgments Payable(Note 14) 2,559 2,721 - - 2,559 2,721
Total $ 16,126 $ 15,896 $ 12,687 $ 13,179 $ 28,813 $ 29,075
Additional information on the long-term debt of the City can be found in various notes to the financial
statements. A reference to the appropriate note is indicated in the table above.
Economic Factors and Next Year's Budgets
The City's Fiscal Year 2021/22 Adopted Budget for all funds is $267,974,450. Of this amount,
$148,410,140, or 55.4%, is appropriated for the City's operating budgets. The funds which make up the
City's operating budget are the General Fund operating fund for$95,160,410, Fire District operating funds
for $47,644,950, and the Library Fund for $5,604,780. The total budget increased by $43,397,720 or
19.3%, and the operating budget increased by$10,626,590 or 7.7%from the Fiscal Year 2020/21 Adopted
Budget.
As a note, the presentation of the General Fund in the basic financial statements is the combination of the
General Fund operating fund and other general funds. However, for budgetary purposes, these other
general funds are not included in the City's operating budget.
22
The General Fund operating fund budgeted receipts of $95,160,410, projecting a decrease of $243,300
from the Fiscal Year 2020/21 actual receipts, as follows:
FY 2020/21 FY 2020/21 FY 2021/22 Increase(Decrease)
Budget Actuals Budget Amount Percentage
Revenues and Other Financing Sources:
Taxes $ 69,192,630 $ 76,601,966 $ 75,134,610 $ (1,467,356) -1.9%
Licenses and permits 4,640,580 5,635,677 4,565,920 (1,069,757) -19.0%
Intergovernmental 216,130 204,646 214,580 9,934 4.9%
Charges for services 7,056,870 4,222,188 7,365,650 3,143,462 74.5%
Use of money and property 1,809,650 688,558 1,553,990 865,432 125.7%
Fines and forfeitures 1,025,320 1,193,288 1,004,750 (188,538) -15.8%
Other 3,635,770 2,944,330 3,598,000 653,670 22.2%
Transfers in 1,817,550 3,913,057 1,722,910 (2,190,147) -56.0%
Total Revenues and Other Financing Sources $ 89,394,500 $ 95,403,710 $ 95,160,410 $ (243,300) -0.3%
The City uses a leading consultant in California for local government property and sales tax projections.
Based on these projections, overall sales tax receipts are expected to increase by $3.2 million or 11.2%
from the Fiscal Year 2020/21 Adopted Budget. The significant increase is due to the projected economic
impacts of the COVID-19 pandemic that were reflected in the Fiscal Year 2020/21 Adopted Budget being
less adverse than originally anticipated combined with robust growth in the share of the countywide sales
tax pool. However, projected revenues from sales taxes are still short of the pre-pandemic Fiscal Year
2019/20 Adopted Budget. Additionally, property taxes, including post-Redevelopment Agency property tax
revenues, are projected to increase modestly by$187,940 or 1.9% from the Fiscal Year 2020/21 Adopted
Budget. The City is proactively monitoring these revenue sources as more information is available and
updating the City Council as appropriate.
Other significant revenue sources for the City are vehicle license fees(VLF and property tax in-lieu of VLF),
franchise taxes, and transient occupancy taxes. VLF and franchise taxes are projected to increase
$825,040 or 3.9% and $127,690 or 1.7%, respectively, from the Fiscal Year 2020/21 Adopted Budget.
Transient occupancy taxes are projected to increase by $1.6 million or 86.3%, which is a considerable
improvement over the Fiscal Year 2020/21 Adopted Budget due to the impacts of the COVID-19 pandemic.
However, it is roughly$1.2 million less than collections during the Fiscal Year 2019/20.
Other matters that are affecting or could affect the City's future operations are as follows:
According to the California State Legislative Analyst Office's (LAO) The 2020-21 Budget: California's Fiscal
Outlook Overview, the consensus among professional economists is that the California economy has
undergone rapid but uneven recovery, with most low-income individuals remaining out of work while high-
income individuals haven't experienced issues. Furthermore, many unknowns about the economic outlook
create uncertainty about the actual fiscal picture for California causing revenues to be above or below
forecasts. These uncertainties are reflective of the experiences in the local and regional economies.
Contacting the City's Financial Management
This financial report is designed to provide our citizens,taxpayers, customers, investors, and creditors with
a general overview of the City of Rancho Cucamonga's finances and to show the City's accountability for
the money it receives. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Finance Department at the City of Rancho
Cucamonga, 10500 Civic Center Drive, Rancho Cucamonga, CA 91730.
23
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24
CITY OF RANCHO CUCAMONGA
STATEMENT OF NET POSITION
JUNE 30,2021
Primary Government
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments $ 391,664,169 $ 23,965,887 $ 415,630,056
Receivables:
Accounts,net of allowances 12,941,399 1,977,351 14,918,750
Taxes 11,398,330 32,500 11,430,830
Notes and loans 168,373,712 30,000 168,403,712
Accrued interest 856,980 64,262 921,242
Otherloans 1,339,624 - 1,339,624
Grants 1,807,047 1,807,047
Internal balances 2,237,525 (2,237,525) -
Prepaid costs 945,622 2,108 947,730
Deposits 49,000 - 49,000
Net OPEB asset 5,723,743 - 5,723,743
Net pension asset 3,691,273 185,482 3,876,755
Restricted assets:
Cash with fiscal agent 4,236,910 9,926,925 14,163,835
Pension rate stabilization program 15,143,575 - 15,143,575
Capital assets,not being depreciated 355,349,668 8,858,100 364,207,768
Capital assets,net of depreciation 446,980,000 33,028,388 480,008,388
Total Assets 1,422,738,577 75,833,478 1,498,572,055
Deferred Outflows of Resources:
Deferred OPEB related items 32,589 - 32,589
Deferred pension related items 27,830,092 591,108 28,421,200
Total Deferred Outflows
of Resources 27,862,681 591,108 28,453,789
Liabilities:
Accounts payable 9,438,292 1,363,253 10,801,545
Accrued liabilities 3,754,381 89,271 3,843,652
Accrued interest 13,777 81,081 94,858
Unearned revenue 13,913,546 - 13,913,546
Deposits payable 9,793,354 761,476 10,554,830
Due to other governments 550,447 - 550,447
Noncurrent liabilities:
Due within one year
Long-term debt 488,350 440,000 928,350
Compensated absences 5,234,000 - 5,234,000
Claims and judgments 645,377 - 645,377
Due in more than one year
Long-term debt 507,339 12,247,378 12,754,717
Advances from Successor Agency 3,953,624 - 3,953,624
Compensated absences 3,383,777 3,383,777
Claims and judgments 1,913,607 - 1,913,607
Net pension liability 98,243,416 2,952,294 101,195,710
Total Liabilities 151,833,287 17,934,753 169,768,040
Deferred Inflows of Resources:
Deferred OPEB related items 3,894,301 - 3,894,301
Deferred pension related items 5,285,146 200,242 5,485,388
Total Deferred Inflows
of Resources 9,179,447 200,242 9,379,689
Net Position:
Net investment in capital assets 801,333,979 39,126,035 840,460,014
Restricted for:
Community development projects 185,550,640 - 185,550,640
Public safety 2,220,634 2,220,634
Parks and recreation 11,102,293 11,102,293
Fire protection 54,248,121 - 54,248,121
Engineering and public works 86,862,008 86,862,008
Community services 9,451,853 9,451,853
Capital projects 36,716,084 - 36,716,084
Public benefit-Municipal Utility - 351,851 351,851
Unrestricted 102,102,912 18,811,705 120,914,617
Total Net Position $ 1,289,588,524 $ 58,289,591 $ 1,347,878,115
See Notes to Financial Statements 25
CITY OF RANCHO CUCAMONGA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2021
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government $ 22,450,487 $ 9,475,907 $ - $ 564,769
Public safety-police 44,200,543 1,358,233 481,122 -
Public safety-fire protection 43,819,839 116,648 51,725
Public safety-animal center 2,652,789 109,803 - -
Community development 21,053,431 11,770,864 7,241,933 223,240
Community services 12,922,140 483,665 332,205 -
Engineering and public works 33,574,147 6,998,156 7,794,858 23,980,591
Interest on long-term debt 269,752 - - -
Total Governmental Activities 180,943,128 30,313,276 15,901,843 24,768,600
Business-Type Activities:
Municipal Utility 10,747,217 12,663,515 - 488,689
Fiber Optic Network 1,044,879 103,575 954,184
Sports Complex 2,302,733 236,650 - -
Total Business-Type Activities 14,094,829 13,003,740 - 1,442,873
Total Primary Government $ 195,037,957 $ 43,317,016 $ 15,901,843 $ 26,211,473
General Revenues:
Taxes:
Property taxes, levied for general purpose
Admissions tax
Transient occupancy taxes
Sales taxes
Franchise taxes
Motor vehicle in lieu-unrestricted
Use of money and property
Other
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position Net Position at End of Year
See Notes to Financial Statements 26
Net(Expenses)Revenues and Changes in Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
$ (12,409,811) $ $ (12,409,811)
(42,361,188) (42,361,188)
(43,651,466) (43,651,466)
(2,542,986) (2,542,986)
(1,817,394) (1,817,394)
(12,106,270) (12,106,270)
5,199,458 5,199,458
(269,752) (269,752)
(109,959,409) - (109,959,409)
2,404,987 2,404,987
12,880 12,880
(2,066,083) (2,066,083)
351,784 351,784
(109,959,409) 351,784 (109,607,625)
91,685,839 - 91,685,839
- 32,500 32,500
2,726,555 - 2,726,555
34,565,886 34,565,886
9,229,371 9,229,371
128,734 128,734
5,956,806 (11,742) 5,945,064
7,576,654 11,171 7,587,825
(809,757) 809,757 -
151,060,088 841,686 151,901,774
41,100,679 1,193,470 42,294,149
1,239,869,723 57,096,121 1,296,965,844
8,618,122 - 8,618,122
$ 1,289,588,524 $ 58,289,591 $ 1,347,878,115
See Notes to Financial Statements 27
CITY OF RANCHO CUCAMONGA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30,2021
Special Revenue Funds
Housing
Development Lighting Successor
General Impact Fees Districts Agency
Assets:
Cash and investments $ 103,482,622 $ 70,113,675 $ 6,689,413 $ 2,099,700
Receivables:
Accounts,net of allowances 1,568,638 358,693 198,585 -
Taxes 9,448,794 - 18,234 -
Notes - - - 168,373,712
Accrued interest 243,288 179,972 15,682 5,479
Other loans - - - -
Grants - -
Prepaid costs 225,620 2,898
Deposits 49,000 -
Due from other funds 8,469,739 -
Advances to other funds 13,416,129 -
Restricted assets:
Cash and investments with fiscal agents - 3,522,911
Pension rate stabilization program 4,239,254 - - -
Total Assets $ 141,143,084 $ 70,652,340 $ 6,921,914 $ 174,004,700
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 2,294,636 $ 1,003,566 $ 172,496 $
Accrued liabilities 1,814,647 13,725 4,476 -
Unearned revenues 483,111 - 12,670
Deposits payable 9,793,339 - -
Due to other governments - -
Due to other funds - -
Advances from other funds - - 10,828,828 -
Total Liabilities 14,385,733 1,017,291 11,018,470 -
Deferred Inflows of Resources:
Unavailable revenues 666 - 179,751 34,806,030
Total Deferred Inflows of Resources 666 - 179,751 34,806,030
Fund Balances:
Nonspendable 13,690,749 - - 2,898
Restricted 9,631,596 69,635,049 139,195,772
Committed 73,280,103 - -
Assigned 30,154,237 -
Unassigned - - (4,276,307) -
Total Fund Balances 126,756,685 69,635,049 (4,276,307) 139,198,670
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 141,143,084 $ 70,652,340 $ 6,921,914 $ 174,004,700
See Notes to Financial Statements 28
CITY OF RANCHO CUCAMONGA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30,2021
Special Revenue Fund
Other Total
Federal Governmental Governmental
Fire District Grants Fund Funds Funds
Assets:
Cash and investments $ 77,887,998 $ 13,408,733 $ 113,758,364 $ 387,440,505
Receivables:
Accounts,net of allowances 1,382,491 9,032 9,394,940 12,912,379
Taxes 225,375 - 1,705,927 11,398,330
Notes - - 168,373,712
Accrued interest 120,498 282,627 847,546
Other loans - 1,339,624 1,339,624
Grants - 1,807,047 1,807,047
Prepaid costs 347,727 2,375 578,620
Deposits - - 49,000
Due from other funds - - 8,469,739
Advances to other funds - - 13,416,129
Restricted assets:
Cash and investments with fiscal agents - 713,999 4,236,910
Pension rate stabilization program 10,904,321 - - 15,143,575
Total Assets $ 90,868,410 $ 13,417,765 $ 129,004,903 $ 626,013,116
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 367,344 $ $ 5,520,999 $ 9,359,041
Accrued liabilities 1,502,531 419,002 3,754,381
Unearned revenues - 13,417,765 - 13,913,546
Deposits payable - - 15 9,793,354
Due to other governments - 550,447 550,447
Due to other funds - 7,955,184 7,955,184
Advances from other funds 864,331 - - 11,693,159
Total Liabilities 2,734,206 13,417,765 14,445,647 57,019,112
Deferred Inflows of Resources:
Unavailable revenues - - 602,039 35,588,486
Total Deferred Inflows of Resources - - 602,039 35,588,486
Fund Balances:
Nonspendable 347,727 2,375 14,043,749
Restricted 14,148,905 113,969,454 346,580,776
Committed 45,172,751 - 118,452,854
Assigned 28,464,821 - 58,619,058
Unassigned - (14,612) (4,290,919)
Total Fund Balances 88,134,204 - 113,957,217 533,405,518
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 90,868,410 $ 13,417,765 $ 129,004,903 $ 626,013,116
See Notes to Financial Statements 29
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30
CITY OF RANCHO CUCAMONGA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30,2021
Fund balances of governmental funds $ 533,405,518
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. 796,891,640
Deferred outflows related to pension related items are not included in the governmental
fund activity:
Contributions made after the measurement date $ 16,923,801
Adjustment due to differences in proportions 1,638,024
Changes in assumptions 993,297
Differences between expected and actual experiences 5,313,509
Net difference between projected and actual earning on plan investments 2,961,461 27,830,092
Deferred inflows related to pension related items are not included in the governmental
fund activity:
Changes in assumptions (1,214,625)
Differences between expected and actual experiences (2,792,869)
Adjustment due to differences in proportions (4,770)
Differences between actual contributions and the proportionate share of contributions (1,272,882) (5,285,146)
Deferred outflows related to OPEB related items are not included in the governmental
fund activity:
Contributions made after the measurement date 32,589 32,589
Deferred inflows related to OPEB related items are not included in the governmental
fund activity:
Changes in assumptions (542,920)
Differences between expected and actual experiences (2,922,452)
Net difference between projected and actual earning on plan investments (428,929) (3,894,301)
Advances from Successor Agency of the Former RDA, compensated absences and claims and judgments
liability are not included in the governmental fund activity:
Advances from Successor Agency of the Former RDA (3,953,624)
Claims and judgments (2,558,984)
Compensated absences (8,617,777) (15,130,385)
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. (98,243,416)
Net pension assets are not available to pay for current-period expenditures
and therefore are not reported in the govenmental funds. 3,691,273
Net OPEB assets are not available to pay for current-period expenditures
and therefore are not reported in the govenmental funds. 5,723,743
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. 35,588,486
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. 8,978,431
Net Position of Governmental Activities $ 1,289,588,524
See Notes to Financial Statements 31
CITY OF RANCHO CUCAMONGA
STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Special Revenue Funds
Housing
Development Lighting Successor
General Impact Fees Districts Agency
Revenues:
Taxes $ 76,601,967 $ $ 2,129,125 $
Licenses and permits 5,667,304 -
Intergovernmental 688,302 38,727
Charges for services 4,973,242 385,642
Use of money and property 814,603 (16,701) (20,035) (3,194)
Fines and forfeitures 1,227,698
Contributions 17,698 -
Developer participation - 11,458,167 - -
Miscellaneous 3,272,491 255,836 41,580 111,727
Total Revenues 93,263,305 12,121,671 2,150,670 108,533
Expenditures:
Current:
General government 14,610,180 - 1,764,608 -
Public safety-police 43,239,756 610 -
Public safety-fire protection - -
Public safety-animal center 2,399,155 368 -
Community development 6,458,490 116,569 603,358
Community services 3,459,866 29,338 -
Engineering and public works 11,440,332 673,884 -
Capital outlay 6,833,492 6,178,780 -
Debt service:
Interest and fiscal charges 8,195 - 111,944 -
Total Expenditures 88,449,466 6,999,549 1,876,552 603,358
Excess(Deficiency)of Revenues
Over(Under)Expenditures 4,813,839 5,122,122 274,118 (494,825)
Other Financing Sources(Uses):
Transfers in 4,265,848 99,440 336,229
Transfers out (3,605,636) - -
Proceeds sale of capital assets 23,317 - -
Total Other Financing Sources
(Uses) 683,529 99,440 336,229 -
Net Change in Fund Balances 5,497,368 5,221,562 610,347 (494,825)
Fund Balances:
Beginning of year 120,837,325 64,413,487 (4,886,654) 139,693,495
Restatements 421,992 - -
Beginning of year,as restated 121,259,317 64,413,487 (4,886,654) 139,693,495
End of Year $ 126,756,685 $ 69,635,049 $ (4,276,307) $ 139,198,670
See Notes to Financial Statements 32
CITY OF RANCHO CUCAMONGA
STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Special Revenue Funds
Other Total
Federal Governmental Governmental
Fire District Grants Fund Funds Funds
Revenues:
Taxes $ 52,829,035 $ $ 20,460,038 $ 152,020,165
Licenses and permits 4,970 105,548 5,777,822
Intergovernmental 25,000 5,730,617 19,042,604 25,525,250
Charges for services 2,178 - 191,553 5,552,615
Use of money and property 2,240,078 144,203 3,158,954
Fines and forfeitures 93,090 - 1,320,788
Contributions - 231,125 248,823
Developer participation - 443,950 11,902,117
Miscellaneous 2,470,002 - 1,723,011 7,874,647
Total Revenues 57,664,353 5,730,617 42,342,032 213,381,181
Expenditures:
Current:
General government - 2,009,109 1,370,302 19,754,199
Public safety-police - - 267,061 43,507,427
Public safety-fire protection 42,771,828 53,505 42,825,333
Public safety-animal center - - 2,399,523
Community development - 12,954,899 20,133,316
Community services - 3,625,596 7,114,800
Engineering and public works - 5,940,356 18,054,572
Capital outlay 7,325,588 12,918,866 33,256,726
Debt service:
Interest and fiscal charges 47,559 - 167,698
Total Expenditures 50,144,975 2,009,109 37,130,585 187,213,594
Excess(Deficiency)of Revenues
Over(Under)Expenditures 7,519,378 3,721,508 5,211,447 26,167,587
Other Financing Sources(Uses):
Transfers in 379,711 - 675,508 5,756,736
Transfers out (113,346) (3,721,508) (311,692) (7,752,182)
Proceeds sale of capital assets 5,473 - 28,790
Total Other Financing Sources
(Uses) 271,838 (3,721,508) 363,816 (1,966,656)
Net Change in Fund Balances 7,791,216 5,575,263 24,200,931
Fund Balances:
Beginning of year 80,342,988 100,185,824 500,586,465
Restatements - 8,196,130 8,618,122
Beginning of year,as restated 80,342,988 108,381,954 509,204,587
End of Year $ 88,134,204 $ - $ 113,957,217 $ 533,405,518
See Notes to Financial Statements 33
THIS PAGE INTENTIONALLY LEFT BLANK
34
CITY OF RANCHO CUCAMONGA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2021
Net change in fund balances-total governmental funds $ 24,200,931
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 $ 30,389,879
Depreciation (19,417,742)
Contributed capital assets 6,538,500
Loss on disposal of capital assets (467,769) 17,042,868
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 161,842
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. (861,874)
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. 597,457
Pension obligation expenses are expenditures in the governmental funds,
but reduce the Net Pension Liability/(Asset)in the statement of net position. (2,258,405)
Revenues reported as unavailable revenue in the governmental funds are recognized
in the statement of activities.These are included in the intergovernmental revenues
in the governmental fund activity. 2,865,417
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. (647,557)
Change in Net Position of Governmental Activities $ 41,100,679
See Notes to Financial Statements 35
CITY OF RANCHO CUCAMONGA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2021
Business-Type Activities-Enterprise Funds
Other Governmental
Enterprise
Major Funds Funds Activities-
Municipal Fiber Optic Sports Internal
Utility Network Complex Total Service Funds
Assets:
Current:
Cash and investments $ 23,917,537 $ - $ 48,350 $ 23,965,887 $ 4,223,664
Receivables:
Accounts 1,872,347 77,022 27,982 1,977,351 29,020
Taxes - - 32,500 32,500 -
Notes and loans 30,000 - 30,000 -
Accrued interest 64,262 64,262 9,434
Prepaid costs 2,108 - 2,108 367,002
Net pension asset 57,645 - 127,837 185,482 -
Restricted:
Cash with fiscal agent - 9,926,925 - 9,926,925
Total Current Assets 25,943,899 10,003,947 236,669 36,184,515 4,629,120
Noncurrent:
Capital assets-net of
accumulated depreciation 19,116,652 10,052,307 12,717,529 41,886,488 5,438,028
Total Noncurrent Assets 19,116,652 10,052,307 12,717,529 41,886,488 5,438,028
Total Assets 45,060,551 20,056,254 12,954,198 78,071,003 10,067,148
Deferred Outflows of Resources:
Deferred pension related items 229,175 - 361,933 591,108 -
Total Deferred Outflows of Resources 229,175 - 361,933 591,108 -
Total Assets and Deferred Outflows of Resources
$ 45,289,726 $ 20,056,254 $ 13,316,131 $ 78,662,111 $ 10,067,148
Liabilities,Deferred Inflows of
Resources and Net Position:
Liabilities:
Current:
Accounts payable $ 1,144,310 $ 161,352 $ 57,591 $ 1,363,253 $ 79,251
Accrued liabilities 38,029 - 51,242 89,271 -
Accrued interest - 81,081 - 81,081 13,777
Deposits payable 761,476 - 761,476 -
Due to other funds - 514,555 514,555 -
Capitalleases - - 488,350
Revenue bonds - 440,000 - 440,000
Total Current Liabilities 1,943,815 1,196,988 108,833 3,249,636 581,378
Noncurrent:
Advances from other funds - - 1,722,970 1,722,970 -
Capitalleases - - - 507,339
Revenue bonds - 12,247,378 - 12,247,378 -
Net pension liability 898,049 - 2,054,245 2,952,294 -
Total Noncurrent Liabilities 898,049 12,247,378 3,777,215 16,922,642 507,339
Total Liabilities 2,841,864 13,444,366 3,886,048 20,172,278 1,088,717
Deferred Inflows of Resources:
Deferred pension related items 61,730 - 138,512 200,242 -
Total Deferred Inflows of Resources 61,730 - 138,512 200,242 -
Net Position:
Net investment in capital assets 19,116,650 7,291,855 12,717,530 39,126,035 4,442,339
Restricted for public benefit-Municipal Utility 351,851 - - 351,851 -
Unrestricted 22,917,631 (679,967) (3,425,959) 18,811,705 4,536,092
Total Net Position 42,386,132 6,611,888 9,291,571 58,289,591 8,978,431
Total Liabilities,Deferred Inflows of Resources and Net
Position $ 45,289,726 $ 20,056,254 $ 13,316,131 $ 78,662,111 $ 10,067,148
See Notes to Financial Statements 36
CITY OF RANCHO CUCAMONGA
STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2021
Business-Type Activities-Enterprise Funds
Other
Enterprise Governmental
Major Funds Funds Activities-
Municipal Fiber Optic Sports Internal
Utility Network Complex Total Service Funds
Operating Revenues:
Sales and service charges $ 12,663,281 $ 98,625 $ 18,180 $ 12,780,086 $
Interdepartmental charges - - - - 1,114,190
Rent - 163,429 163,429 -
Miscellaneous 234 - 58,480 58,714 108
Total Operating Revenues 12,663,515 98,625 240,089 13,002,229 1,114,298
Operating Expenses:
Salaries and benefits 900,276 - 1,334,752 2,235,028 -
Maintenance and operations 7,889,844 416,072 267,480 8,573,396 536,056
Contractual services 704,379 5,500 121,664 831,543 595,904
Depreciation expense 1,252,718 174,374 560,035 1,987,127 1,753,206
Total Operating Expenses 10,747,217 595,946 2,283,931 13,627,094 2,885,166
Operating Income(Loss) 1,916,298 (497,321) (2,043,842) (624,865) (1,770,868)
Nonoperating Revenues(Expenses):
Admissions tax - 32,500 32,500 -
Interest revenue 294,032 - 294,032 39,676
Interest expense - (442,007) (17,907) (459,914) (47,428)
Miscellaneous (305,774) 5,756 (895) (300,913) (54,626)
Total Nonoperating
Revenues(Expenses) (11,742) (436,251) 13,698 (434,295) (62,378)
Income(Loss)Before Contributions
and Transfers 1,904,556 (933,572) (2,030,144) (1,059,160) (1,833,246)
Capital contributions 488,689 954,184 - 1,442,873 -
Transfers in - 934,831 1,197,246 2,132,077 1,185,689
Transfers out (1,322,320) (1,322,320) -
Changes in Net Position 1,070,925 955,443 (832,898) 1,193,470 (647,557)
Net Position:
Beginning of Year 41,315,207 5,656,445 10,124,469 57,096,121 9,625,988
Changes in Net Position 1,070,925 955,443 (832,898) 1,193,470 (647,557)
End of Fiscal Year $ 42,386,132 $ 6,611,888 $ 9,291,571 $ 58,289,591 $ 8,978,431
See Notes to Financial Statements 37
CITY OF RANCHO CUCAMONGA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2021
Other
Enterprise Governmental
Funds Activities-
Municipal Fiber Optic Sports Internal
Utility Network Complex Total Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users $ 12,542,333 $ 91,397 $ 189,187 $ 12,822,917 $
Cash received from interfund service provided - - - - 1,114,190
Cash paid to suppliers for goods and services (8,600,463) (413,294) (375,353) (9,389,110) (976,910)
Cash paid to employees for services (793,754) (996,390) (1,790,144) -
Cash received from others - 108
Net Cash Provided(Used)by
Operating Activities 3,148,116 (321,897) (1,182,556) 1,643,663 137,388
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in - 934,831 1,197,246 2,132,077 1,185,689
Cash transfers out (1,322,320) - - (1,322,320) -
Cash received from other funds (296,623) (290,390) (587,013)
Cash paid from other funds (124,653) (124,653)
Admissions tax received 32,500 32,500
Miscellaneous - - (34,966)
Net Cash Provided(Used)by
Non-Capital Financing Activities (1,618,943) 644,441 1,105,093 130,591 1,150,723
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (1,240,331) (390,925) - (1,631,256) (758,139)
Principal paid on capital debt (425,000) (425,000) (470,310)
Interest paid on capital debt (509,831) (509,831) (76,680)
Interest paid on interfund financing (18,803) (18,803)
Net Cash Provided(Used)by
Capital and Related Financing Activities (1,240,331) (1,325,756) (18,803) (2,584,890) (1,305,129)
Cash Flows from Investing Activities:
Interest received 303,557 303,557 44,469
Net Cash Provided(Used)by
Investing Activities 303,557 303,557 44,469
Net Increase(Decrease)in Cash
and Cash Equivalents 592,399 (1,003,212) (96,266) (507,079) 27,451
Cash and Cash Equivalents at Beginning of Year 23,325,138 10,930,137 144,616 34,399,891 4,196,213
Cash and Cash Equivalents at End of Year $ 23,917,537 $ 9,926,925 $ 48,350 $ 33,892,812 $ 4,223,664
Reconciliation of Operating Income to Net Cash
Provided(Used)by Operating Activities:
Operating income(loss) $ 1,916,298 $ (497,321) $ (2,043,842) $ (624,865) $ (1,770,868)
Adjustments to Reconcile Operating Income(loss)
Net Cash Provided(Used)by Operating Activities:
Depreciation 1,252,718 174,374 560,035 1,987,127 1,753,206
(Increase)decrease in accounts receivable (319,330) (7,228) (18,402) (344,960) -
(Increase)decrease in taxes receivable (32,500) (32,500)
(Increase)decrease in deferred outflows from pensions (5,971) 138,625 132,654
(Increase)decrease in notes and loans receivable 40,000 - 40,000 -
(Increase)decrease in prepaid cost 14,690 - 14,690 140,685
(Increase)decrease in net pension asset 24,887 - 16,909 41,796 -
Increase(decrease)in accounts payable (20,930) 8,278 13,791 1,139 14,365
Increase(decrease)in accrued liabilities 6,841 - 668 7,509 -
Increase(decrease)in deposits payable 158,148 - 158,148
Increase(decrease)in net pension liability 103,911 211,645 315,556
Increase(decrease)in deferred inflows from pensions (23,146) (29,485) (52,631)
Total Adjustments 1,231,818 175,424 861,286 2,268,528 1,908,256
Net Cash Provided(Used)by
Operating Activities $ 3,148,116 $ (321,897) $ (1,182,556) $ 1,643,663 $ 137,388
Non-Cash Investing,Capital,and Financing Activities:
Donated infrastructure $ 488,689 $ 954,184 $ $ 1,442,873 $ -
Gain/(Loss)on Investments - - - 54,626
See Notes to Financial Statements 38
CITY OF RANCHO CUCAMONGA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30,2021
Private-
Purpose Trust
Fund
Successor
Custodial Agency of the
Funds Former RDA
Assets:
Cash and investments $ 7,047,090 $ 22,819,206
Receivables:
Accounts 2,016 -
Taxes 54,122 -
Accrued interest 11,766 -
Developer loans - 10,259,967
Prepaid bond insurance - 1,253,247
Advances to City - 3,953,624
Restricted assets:
Cash and investments with fiscal agents 4,015,348 85
Total Assets $ 11,130,342 38,286,129
Deferred Outflows of Resources:
Deferred charge on refunding - 2,095,529
Total Deferred Outflows of Resources - 2,095,529
Liabilities:
Accrued interest $ 845,179 4,137,558
Long-term liabilities:
Due in one year 3,739,000 13,906,041
Due in more than one year 57,051,000 251,003,324
Total Liabilities $ 61,635,179 269,046,923
Deferred Inflows of Resources:
Deferred charges on refunding - 1,527,507
Total Deferred Inflows or Resources - 1,527,507
Net Position:
Restricted for organizations and other governments (50,504,837) (230,192,772)
Total Net Position $ (50,504,837) $ (230,192,772)
See Notes to Financial Statements 39
CITY OF RANCHO CUCAMONGA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30,2021
Private-
Purpose Trust
Fund
Successor
Custodial Agency of the
Funds Former RDA
Additions:
Collection of special taxes $ 6,657,104 $ 27,018,962
Net change in fair value of investments (92,355) -
Interest 54,516 14,653
Other revenue - 162,367
Total Additions 6,619,265 27,195,982
Deductions:
Administrative expenses 429,649 -
Contractual services 1,500 928,240
Interest expense 3,482,665 11,103,818
Payments to city 338,886 327,990
Total Deductions 4,252,700 12,360,048
Changes in Net Position 2,366,565 14,835,934
Net Position:
Beginning of year - (245,028,706)
Restatements (52,871,402)
Beginning of fiscal year,as restated (52,871,402) (245,028,706)
Net Position-End of the Year $ (50,504,837) $ (230,192,772)
See Notes to Financial Statements 40
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS
J U N E 30, 2021
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Organization and Summary of Significant Accounting Policies
a. Description of Entity
The City of Rancho Cucamonga was incorporated on November 30, 1977, under the laws
of the State of California and enjoys all the rights and privileges applicable to a General
Law City. The City operates under a council-manager form of government
and provides its citizens with a full range of municipal services. It is governed by an
elected five-member board. As required by accounting principles generally
accepted in the United States of America, these financial statements present the
City of Rancho Cucamonga (the City) and its component units, entities for which the City
is considered financially accountable.
The inclusion of an organization within the scope of the reporting entity of the
City of Rancho Cucamonga is based on the provisions of GASB Statement No. 14 and
amended with GASB Statement No. 61. The blended component units discussed below,
although legally separate entities, are in substance part of the government operation and
so data from these component units has been combined herein. The following criteria were
used in the determination of the blended component units:
1. The members of the City Council also act as the governing body of the
Rancho Cucamonga Public Improvement Corporation (the Improvement Corporation),
the Rancho Cucamonga Fire Protection District (the Fire District), the
Rancho Cucamonga Library (the Library), and the Rancho Cucamonga Public
Financing Authority (the Financing Authority).
2. The Improvement Corporation, the Fire District, the Library, and the Financing
Authority are managed by employees of the City. A portion of the City's general
overhead costs is allocated to the Fire District and the Library.
3. The City,the Improvement Corporation,the Fire District,the Library,and the Financing
Authority are financially interdependent. They provide financial benefit and 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.
41
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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.
42
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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 days 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 custodial funds and a private purpose trust fund.
Custodial funds are used to account for situations where the government's role is purely
custodial. 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 the District's
fire protection services. The source of revenue in the fund is primarily from
property taxes.
• The Federal Grants Fund accounts for grant funds received directly or in pass-through
from the Federal government and the allowable expenditures reported in those
programs. The Federal grant programs reported in this special revenue fund are
nonrecurring.
43
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
The City reports the following major proprietary funds:
• 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 Network Fund accounts for receipts from user charges and leases for
conduit and fiber access, costs associated with the City's existing utility, information
technology and traffic fiber conduits.
Additionally, the City reports the following fund types:
• 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.
• Custodial funds are used to account for money and property held by the City as trustee
or custodian. They are also used to account for various assessment districts and
community facilities districts for which the City acts as an agent for debt service activity.
• A private-purpose trust fund is 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.
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.
44
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity
Cash and Investments
All cash and investments, except those that are held by fiscal agents or through a trust,
are held in a City pool. These pooled funds are available upon demand and therefore
are considered cash and cash equivalents for purposes of the statement of cash flows.
Investments held by fiscal agents with an original maturity of three months or less are
also considered cash equivalents and are shown as restricted assets for financial
statement presentation purposes. Investments for the City,as well as for its component
units, are reported at fair value.
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 Trusts are held
for the purpose of rate stabilization of future pension obligations. The trusts are
Section 115 irrevocable trusts. The investments are reported at fair value.
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.
45
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
The costs of normal maintenance and repairs that do not add to the value of the capital
assets or materially extend capital assets' useful 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 asset.
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:
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 asset.
46
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Deferred inflows and outflows of resources related to changes in the net pension
liability, net pension asset, and net OPEB asset 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, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
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 by an independent actuary.
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.
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, 2020
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
47
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB asset, 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 (CaIPERS), and additions to/deductions from the OPEB plan's
fiduciary net position have been determined by an independent actuary. For this
purpose, benefit payments are recognized when currently due and payable in
accordance with the benefit terms. Investments are reported at fair value.
GASB Statement No. 75 requires that the reported results must pertain to liability and
asset information within certain defined timeframes. For this report, the following
timeframes are used:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Accrued Employee Benefits
The City's policy permits employees to accumulate earned but unused vacation and
sick pay benefits. The total amount of liability for unused vacation and sick pay benefits
is accrued when incurred in the government-wide financial statements.The City utilizes
the General Fund and the Fire District Special Revenue Fund in the governmental fund
financial statements to account for the short-term portion of its liability. The short-term
portion is the unused reimbursable leave still outstanding following an employee's
resignation or retirement.
Vacation pay is payable to employees at the time a vacation is taken or upon
termination of employment. Fire District employees cannot accrue more than one and
one-half times their regular annual entitlement.
Sick leave is payable when an employee is unable to work because of illness. For City
employees, those who terminate their employment after five years of continuous
service and have at least 50% of five years sick leave accrued on the books upon
termination may be paid for 120 hours of the accrued leave.
For Fire District employees,sick leave may be accumulated indefinitely or an employee
with ten or more years of service is eligible to convert unused sick leave to vacation in
accordance with the following and with any remainder of hours to still remain unused
sick time:
Accumulated Sick
Employee Leave Balance Vacation
Type Prior Calendar Year Conversion Rate
shift 108- 144 hours one-half
shift 72- 108 hours one-fourth
40-hour 90- 120 hours one-half
40-hour 60-90 hours one-fourth
48
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Upon service retirement of a public safety employee, the option exists to sell back up
to one-half of total accumulated sick leave, have the leave credited toward service in
accordance with the Public Retirement Law, or apply the cash value of up to 100% of
the leave to the employee's VEBA account. All unused sick leave is forfeited upon
termination, other than for normal retirement.
Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities or
proprietary fund type statement of net position. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount. Bond
issuance cost, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenses.
In the fund financial statements, governmental fund types recognize bond premiums
and discounts, as well as bond issuance costs, during the current period. The face
amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service
expenditures.
Fund Balance
Fund balance is essentially the difference between the assets, liabilities, and deferred
inflows reported in a governmental fund. There are five separate components of fund
balance, each of which identifies the extent to which the City is bound to honor
constraints on the specific purposes for which amounts can be spent.
• Non-spendable fund balance (inherently non-spendable)
• Restricted fund balance (externally enforceable limitations on use)
• Committed fund balance (self-imposed limitations on use)
•Assigned fund balance (limitation resulting from intended use)
• Unassigned fund balance (residual net resources)
The General Fund is the only fund that can report a positive unassigned fund balance
amount. In governmental funds other than the General Fund, if expenditures incurred
for specific purposes exceed the amounts that are restricted, committed or assigned
to these purposes, it may be necessary to report a negative unassigned fund balance
in that fund.
49
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
The City Council, as the City's highest level of decision-making authority, may commit
fund balance for specific purposes pursuant to constraints imposed by the adoption of
a resolution. These committed amounts cannot be used for any other purpose unless
the City Council removes or changes the specified use through the same type of formal
action taken to establish the commitment. City Council action to commit fund balance
needs to occur within the fiscal reporting period; however, the amount can be
determined subsequently. Fund balance commitments are as follows:
Changes in Economic Circumstances
The City's General Fund balance committed for changes in economic
circumstances is established at a goal of a 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,
excluding assets owned by the Fire District.
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.
Working 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.
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 Fire District's total yearly SIRS for all types of insurance coverage.
50
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
PASIS Worker's Compensation Tail Claims
The Fire District's fund balance committed for payment of outstanding Worker's
Compensation claims remaining after the Fire District's withdrawal from PASIS is
established at a goal equal to the most recent fiscal year end Claims Cost Detail
Report from the Fire 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 Fire District's replacement
criteria is established at a minimum goal of 50% of Fire 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.
Economic Development Strategic Reserve
The City's General Fund balance committed for the acquisition and development
of key properties to promote economic development that will benefit the City as a
whole and, potentially, generate ongoing revenues to the City whenever feasible
through negotiated agreements with third parties (including but not limited to land
leases or public-private partnerships). Establishment of this reserve is a City
Council goal, established in the spring of 2021. The funding goal for this reserve
is the equivalent of the current value of a 10-acre mixed-use site on Foothill
Boulevard as of January 1 of each year.
Seasonal Weather Emergency Reserve
The City's General Fund balance committed for unanticipated costs incurred due
to damage resulting from severe weather emergencies such as wind, flood, fire,
extreme heat, extreme cold, and other forces of nature. The reserve will provide
funding for these costs without impacting the City's operating budget and will be
appropriated by the City Council on an as needed basis when extreme seasonal
weather emergencies occur.
51
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both
restricted and unrestricted resources (the total of committed, assigned,
and unassigned fund balance). In order to calculate the amounts to report as restricted,
committed, assigned, and unassigned fund balance in the governmental fund financial
statements, a flow assumption must be made about the order in which the resources
are considered to be applied. The City considers restricted fund balance to have been
spent first when an expenditure is incurred for purposes for which both restricted and
unrestricted fund balance is available. Similarly, when an expenditure is incurred for
purposes for which amounts in any of the unrestricted classifications of fund balance
could be used, the City considers committed amounts to be reduced first, followed by
assigned amounts and then unassigned amounts.
Net Position
In the governmental-wide financial statements and proprietary fund financial
statements, net position is classified as follows:
Net Investment in Capital Assets — This amount consists of capital assets net of
accumulated depreciation and reduced by outstanding debt 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.
52
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Functional Classifications
Expenditures of the governmental funds are classified by function. Functional
classifications are defined as follows:
• General Government includes legislative activities, City Clerk, City Attorney,
City Manager as well as management or supportive services across more than one
functional area.
• Public Safety- Police includes those activities which involve police protection.
• Public Safety - Fire Protection includes activities of the Fire District which involve
the protection of people and property from fire as well as emergency
preparedness.
• Public Safety - Animal Center includes those activities which involve animal care
and services.
• Community Development includes those activities which involve planning and
economic development, as well as building and safety.
• Community Services includes activities which provide recreation, cultural and
educational services.
• Engineering and Public Works includes all maintenance, engineering and
capital improvements which relate to streets, parks, flood control and other
public facilities.
53
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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, 2021:
General Fund $ 2,532,893
Development Impact Fees 1,188,430
Lighting Districts 114,322
Fire District 2,478,978
Other Governmental Funds 5,844,098
b. Deficit Fund Balances or Net Position
The Lighting Districts Fund has a deficit fund balance of$4,276,335 at June 30, 2021. The
deficit fund balance will be eliminated by the repayment of the interfund advance from the
General Fund described in Note 6.
The following nonmajor special revenue funds reported deficits in fund balance at
June 30, 2021:
Recreation $ 5,279
Pedestrian Grant 9,237
Energy Efficiency and Conservation Block Grant 96
The deficits in the Recreation and Pedestrian Grant special revenue funds will be
eliminated by future expected revenue sources.
The deficit in the Energy Efficiency and Conservation Block Grant fund will be eliminated
with a final accounting and close-out of the fund.
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
As of June 30, 2021, cash and investments were reported in the accompanying financial
statements as follows:
Governmental Business-Type Custodial Private-Purpose Total Cash and
activities Activities Funds Trust Fund Investments
Cash and Investments $391,664,169 $ 23,965,887 $ 7,047,090 $ 22,819,206 $445,496,352
Restricted:
Cash with fiscal agent 4,236,910 9,926,925 4,015,348 85 18,179,268
Pension rate stabilization fund 15,143,575 - - - 15,143,575
Total Cash and Investments: $411,044,654 $ 33,892,812 $ 11,062,438 $ 22,819,291 $478,819,195
54
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 3: Cash and Investments (Continued)
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, 2021,the carrying amount of the City's deposits was$35,615,434 and the bank
balance was $34,901,926. The $713,508 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:
• United States Treasury Securities
• United States Federal Agencies
• Supranational Securities
• Municipals Notes or Bonds
• Negotiable Certificates of Deposit
• Asset-Backed Securities
• Medium-Term Notes
• Bankers'Acceptances
• Commercial Paper
• Repurchase Agreements (Repos)
• State of California Local Agency Investment Fund (LAIF)
• Joint Powers Authority (JPA) Investment Pool
• Money Market Funds
• Bank Deposits
55
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 3: Cash and Investments (Continued)
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, 2021, the City's investments in corporate bonds were A3 of better by
Moody's. As of June 30, 2021, the City invested in Federal Farm Credit Bank, Federal
Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage
Association, and municipal bonds 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, 2021, 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, 2021, the City's deposits (bank balances) were insured by the FDIC up
to$250,000 and the remaining balances were collateralized under California Law.
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, 2021, 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 National Mortgage Association 8.26%
Investments guaranteed by the U.S. government and investments in mutual funds and
external investment pools are excluded from this.
56
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 3: Cash and Investments (Continued)
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, 2021, the City had the following investments and original maturities:
Investment Maturities (in Years)
6 months 6 months to 1 year to 3 Years to
or less 1 year 3 years 5 years Fair Value
Investments:
Local Agency Investment Fund $ 115,684,289 $ - $ - $ - $ 115,684,289
Federal Governmental Agencies
Federal Farm Credit Bank - 6,592,591 - 2,975,814 9,568,405
Federal Home Loan Mortgage Corp. - 3,053,913 6,494,801 2,266,576 11,815,290
Federal National Mortgage Assoc. 1,501,523 - 8,653,246 23,688,696 33,843,465
Municipal Bonds 475,366 - 1,014,240 - 1,489,606
Corporate Bonds - 460,148 13,350,993 14,797,890 28,609,031
Certificate of Deposit - - 502,521 1,224,607 1,727,128
US Treasury - 13,588,360 94,459,302 67,900,321 175,947,983
Supranational - 4,547,367 3,146,705 3,961,985 11,656,057
Asset-Backed Security - - 180,012 3,169,472 3,349,484
Commercial Paper 794,623 1,588,560 - - 2,383,183
Money Market 13,806,997 - - - 13,806,997
Restricted Investments:
Mutual Fund 15,143,575 - - - 15,143,575
Investments with Fiscal Agents:
Money Market Funds 18,179,268 - - - 18,179,268
$ 165,585,641 $ 29,830,939 $ 127,801,820 $ 119,985,361 $ 443,203,761
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.
57
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 3: Cash and Investments (Continued)
The City has the following recurring fair value measurements as of June 30, 2021:
Level
Investments by fair value level Totals 1 2
Local Agency Investment Fund $ 115,684,289 $ 115,684,289 $
Federal Governmental Agencies
Federal Farm Credit Bank 9,568,405 9,568,405
Federal Home Loan Mortgage Corporation 11,815,290 11,815,290
Federal National Mortgage Association 33,843,465 33,843,465
Municipal Bonds 1,489,606 1,489,606 -
Corporate Bonds 28,609,031 - 28,609,031
Certificate of Deposit 1,727,128 1,727,128 -
US Treasury 175,947,983 175,947,983 -
Supranational 11,656,057 - 11,656,057
Asset-Backed Security 3,349,484 - 3,349,484
Commerical Paper 2,383,183 2,383,183 -
Money Market 13,806,997 13,806,997
Restricted Investments
Mutual Fund 15,143,575 15,143,575
Cash with Fiscal Agents
Money Market Funds 18,179,268 18,179,268
Totals $ 443,203,761 $ 399,589,189 $ 43,614,572
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 value factors. Federal Agency Securities classified in Level 2 of
the fair value hierarchy are valued using institutional bond quotes. There are no Level 3
investments.
Note 4: Notes and Loans Receivables
Beginning Ending
Balance Additions Reductions Balance
Governmental Activities
NHDC(San Sevaine) $ 44,778,688 $ 404,577 $ (57,307) $ 45,125,958
LINC-Pepperwood Housing Investors, LP 27,445,126 385,648 - 27,830,774
HB Housing Partners, L.P. 12,603,008 270,000 - 12,873,008
SCHDC(Rancho Verde) 7,658,821 97,498 (1,542) 7,754,777
SCHDC(Heritage Pointe Senior Apartments) 2,726,465 217,755 - 2,944,220
Rancho Workforce Housing, L.P. 32,569,901 777,117 - 33,347,018
North Town Housing Partners(Villa Del Norte) 10,511,058 177,875 (120,093) 10,568,840
NHDC(Olen Jones Senior Apartments) 4,604,993 128,232 - 4,733,225
Villa Pacifica II LP 9,311,833 260,515 - 9,572,348
Day Creek Senior Housing Partners 2, L.P. 5,172,784 150,582 - 5,323,366
Day Creek Senior Housing Partners, L.P. 5,085,385 147,985 - 5,233,370
First-Time Homebuyer Program 3,146,808 - (80,000) 3,066,808
$ 165,614,870 $ 3,017,784 $ (258,942) $ 168,373,712
58
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Notes and Loans Receivables (Continued)
Notes and loans receivables consist of the following at June 30, 2021:
Governmental activities
1. On September 1, 2005, the Agency entered into a loan agreement with
Northtown Housing Development Corporation (NHDC) 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, 2021,the advances paid
against this line of credit amount to $40,457,658 and accrued interest amounts to
$4,668,300 for a total of$45,125,958. Accrued interest is offset by deferred revenue.
2. 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 30,2021, advances paid against
this line of credit amounts to $21,638,113 and accrued interest amounts
to$6,192,661 for a total balance of$27,830,774.Accrued interest is offset by deferred
revenue.
3. 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, 2021, the advances paid against this line of credit amounted to $9,000,000
and accrued interest amounts to $3,873,008 for a total of $12,873,008. Accrued
interest is offset by deferred revenue.
59
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Notes and Loans Receivables (Continued)
4. On March 9, 2006, the Agency entered into a loan agreement with The Southern
California Housing Development Corporation (SCHDC) 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, 2021,the advances paid against this line
of credit amounted to $6,499,910 and accrued interest amounts to $1,254,867 for a
total of$7,754,777. Accrued interest is offset by deferred revenue.
5. 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 (SCHDC)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, 2021,the advances paid against this line
of credit amounted to $2,847,233 and accrued interest amounts to $96,987, for a total
of$2,944,220. Accrued interest is offset by deferred revenue.
6. 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, 2021, the advances paid against this line of credit amounted
to$25,868,857 and accrued interest amounts to$7,478,161 for a total of$33,347,018.
60
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Notes and Loans Receivables (Continued)
7. 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, 2021, the outstanding balance amounts to $10,568,840, including
accrued interest of$4,639,659. Accrued interest is offset by deferred revenue.
8. 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 Corporation
(NHDC) 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, 2021, the
outstanding balance amounts to$4,274,400 and accrued interest amounts to including
$458,825 for a total of$4,733,225. Accrued interest is offset by deferred revenue.
9. On July 11, 2014, the City entered into a loan agreement with 7418 Archibald LLC
("Developer") in the amount of $42,913 ("City Predevelopment Loan"), pursuant to
certain Acquisition, Disposition, Development and Loan Agreement dated
February 19, 2014, between Developer and the City (the "ADDLA"), to develop a
60-unit affordable senior housing project at 7418 Archibald Avenue, referred to as Villa
Pacifica II. The interest of the loan is zero percent(0%) per annum. The principal and
any interest due under this Note shall be repaid or forgiven as set forth in the ADDLA,
as amended by a first Implementation and Amendment to Acquisition, Disposition,
Development and Loan Agreement dated February 17, 2016 between the Borrower's
predecessor-in-interest and City and a Second Implementation and Amendment to
Acquisition, Disposition, Development and Loan Agreement dated April 1, 2017. The
loan may be prepaid in full or in part, at any time without penalty or premium. 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.
61
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Notes and Loans Receivables (Continued)
As of June 30, 2021, the advances paid against this line of credit amounted to
$8,683,821 and accrued interest amounted of $888,527, for a total amount of
$9,572,348.
10. 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, 2021, the outstanding balances of the land loans are as follows:
(a)Day Creek Senior Housing Partners, LP amounts to$5,233,370 including$337,067
accrued interest and (b) Day Creek Senior Housing Partners 2, L.P. amounts to
$2,996,707 including $193,010 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, 2021,
the outstanding balance is$2,326,659 including accrued interest of$131,852.Accrued
interest is offset by deferred revenue.
11. First-time homebuyer loans represent 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, 2021, the outstanding balance amounts to $3,066,808 with no
interest due.
Total notes and loans receivables for governmental activities at June 30, 2021, including
accrued interest of$30,212,924 amounted to $168,373,712.
62
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Notes and Loans Receivables (Continued)
Business-type activities
12. 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, 2021, the outstanding balance amounts to $30,000.
Total notes and loans receivables for the business-type activities at June 30, 2021,
amounted to $30,000.
Note 5: Capital Assets
Governmental activities capital assets for the year ended June 30, 2021, was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental Activities:
Capital assets, not being depreciated:
Land $ 98,138,850 $ 2,568,583 $ - $ $ 100,707,433
Right of way 237,012,767 - - - 237,012,767
Construction-in-progress 17,019,872 24,668,080 (139,890) (23,918,594) 17,629,468
Total Capital Assets,
Not Being Depreciated 352,171,489 27,236,663 (139,890) (23,918,594) 355,349,668
Capital assets, being depreciated:
Building improvements 217,898,310 206,786 - 15,926,450 234,031,546
Improvement other than buildings 43,724,150 643,235 - - 44,367,385
Equipment and vehicles 55,868,960 2,601,444 (67,686) - 58,402,718
Furniture and fixtures 3,541,887 5,893 - - 3,547,780
Infrastructure 494,780,040 6,992,497 (507,212) 7,992,144 509,257,469
Intangible 3,328,862 - - - 3,328,862
Total Capital Assets,
Being Depreciated 819,142,209 10,449,855 (574,898) 23,918,594 852,935,760
Less accumulated depreciation:
Building improvements 73,161,807 7,137,978 - - 80,299,785
Improvement other than buildings 19,202,358 1,917,065 - - 21,119,423
Equipment and vehicles 43,792,696 3,319,738 (67,686) - 47,044,748
Furniture and fixtures 3,311,645 111,744 - - 3,423,389
Infrastructure 242,670,686 8,461,402 (179,333) - 250,952,755
Intangible 2,892,639 223,021 - - 3,115,660
Total Accumulated
Depreciation 385,031,831 21,170,948 (247,019) - 405,955,760
Total Capital Assets,
Being Depreciated, Net 434,110,378 (10,721,093) (327,879) 23,918,594 446,980,000
Governmental Activities
Capital Assets, Net $ 786,281,867 $ 16,515,570 $ (467,769) $ - $ 802,329,668
63
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 5: Capital Assets (Continued)
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government $ 362,278
Public safety -police 693,116
Public safety -fire protection 3,168,373
Engineering and public works 10,277,116
Community development 67,210
Community services 4,849,649
Internal service 1,753,206
Total Governmental Activities $ 21,170,948
Business-type activities capital assets for the year ended June 30, 2021, 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 4,993,852 967,478 - (2,554,245) 3,407,085
Total Capital Assets,
Not Being Depreciated 10,444,867 967,478 - (2,554,245) 8,858,100
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 702,151 - - - 702,151
Furniture and fixtures 6,004 - - - 6,004
Infrastructure 34,857,488 2,106,652 - 2,554,245 39,518,385
Intangible 25,858 - - - 25,858
Total Capital Assets,
Being Depreciated 59,185,604 2,106,652 - 2,554,245 63,846,501
Less accumulated depreciation:
Building improvements 11,632,446 431,198 - - 12,063,644
Improvement other than buildings 4,135,109 128,835 - - 4,263,944
Equipment and vehicles 549,120 17,436 - - 566,556
Furniture and fixtures 6,004 - - - 6,004
Infrastructure 12,482,449 1,409,658 - - 13,892,107
Intangible 25,858 - - - 25,858
Total Accumulated
Depreciation 28,830,986 1,987,127 - - 30,818,113
Total Capital Assets,
Being Depreciated, Net 30,354,618 119,525 - 2,554,245 33,028,388
Business-Type Activities
Capital Assets, Net $ 40,799,485 $ 1,087,003 $ - $ - $ 41,886,488
64
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 5: Capital Assets (Continued)
Depreciation expense was charged to funds of the business-type activities as follows:
Business-Type Activities:
Sports Complex $ 560,035
Municipal Utility 1,252,718
Fiber Optic Network 174,374
Total Business-Type Activities $ 1,987,127
Note 6: Interfund Receivable, Payable and Transfers
The composition of interfund balances as of June 30, 2021, was as follows:
Due To/From Other Funds
Due to Other Funds
Nonmajor
Governmental FiberOptic
Funds Funds Network Total
Due From Other Funds:
General Fund $ 7,955,184 $ 514,555 $ 8,469,739
Due to/from other funds were the results of routine interfund transactions not cleared prior to
the end of the fiscal year or to cover negative cash balances at June 30, 2021.
Advances To/From Other Funds
Advances from Other Funds
Lighting Sports
Funds Districts Fire District Complex Total
Advances to Other Funds:
General Fund $ 10,828,828 $ 864,331 $ 1,722,970 $ 13,416,129
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, 2021, the outstanding balance amounted to $10,828,828.
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, 2021, the outstanding balance amounted to $864,331.
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, 2021, the outstanding balance amounted to $1,722,970.
65
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 6: Interfund Receivable, Payable and Transfers (Continued)
Interfund Transfers
Transfers Out
General Fire Federal Grants Municipal Nonmajor
Funds Fund District Fund Utility Governmental Total
Transfers In
General Fund $ $ $ 2,694,146 $ 1,322,320 $ 249,382 $ 4,265,848
Development Impact Fees 82,440 - 17,000 99,440
Lighting Districts 333,649 - 2,580 336,229
Fire District - 379,711 - 379,711
Fiber Optic Network 934,831 - 934,831
Internal Service Funds 721,864 113,346 350,479 - 1,185,689
Nonmajor Governmental 438,041 - 194,737 42,730 675,508
Nonmajor Enterprise 1,177,251 - 19,995 - 1,197,246
$ 3,605,636 $ 113,346 $ 3,721,508 $ 1,322,320 $ 311,692 $ 9,074,502
The General Fund transferred $333,649, $934,831, $721,846, $438,041, and $1,177,251 to the
Lighting Districts Fund, Fiber Optic Network Fund, Internal Service Funds, Nonmajor
Governmental Funds, and Nonmajor Enterprise Funds, respectively, to cover the costs of
operations.
The Fire District Fund transferred $113,346 to the Internal Service Funds to cover the cost of
operations.
The Federal Grants Fund transferred $2,694,146, $82,440, $379,711, $350,479, 194,737, and
$19,995 to the General Fund, Development Impact Fees, Fire District, Internal Services Funds,
Nonmajor Governmental Funds, and Nonmajor Enterprise Funds, respectively, to reimburse
for eligible expenditures of Federal grant programs.
The Municipal Utility transferred $1,322,320 to the General Fund to cover the cost of
operations.
The Nonmajor Governmental Funds transferred $249,382, $17,000, $2,580, and $42,730 to
the General Fund, Development Impact Fees, Fire District Fund, and other Nonmajor
Governmental Funds, respectively, to cover budgeted expenditures for operations.
Note 7: Long-Term Debt Obligations
a. Long-Term Debt—Governmental Activities
The following is a schedule of changes in governmental activities long-term debt for the
fiscal year ended June 30, 2021:
Beginning Ending Due Within
Balance Additions Repayments Balance One Year
Capital Leases:
Dell Blade Servers $ 1,465,999 $ - $ 470,310 $ 995,689 $ 488,350
66
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 7: Long-Term Debt Obligations (Continued)
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 1st
of each year with the final payment due February 2023.
The future minimum lease obligations and the net present value of these minimum lease
payments as of June 30, 2021 are as follows:
Year ended Annual
June 30, Payment
2022 $ 527,330
2023 527,330
Total payments 1,054,660
Interest portion (58,971)
Present value of lease payments $ 995,689
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, 2021:
Beginning Ending Due Within
Balance Additions Repayments Balance One Year
2019 Lease Revenue Bonds $ 11,885,000 $ - $ 425,000 $ 11,460,000 $ 440,000
Unamortized bonds premium 1,234,616
Unamortized bonds discount (7,238)
Total $ 12,687,378
2019 Lease Revenue Bonds
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.
67
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 7: 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, 2021:
Year Ending Series A Series B
June 30 Principal Interest Principal Interest
2022 $ - $ 449,456 $ 440,000 $ 47,838
2023 - 449,456 450,000 34,638
2024 - 449,456 465,000 21,138
2025 250,000 449,456 230,000 7,188
2026 495,000 439,456 - -
2027-2031 2,880,000 1,800,031 - -
2032-2036 3,635,000 1,047,781 - -
2037-2039 2,615,000 195,838 - -
Total $ 9,875,000 $ 5,280,930 $ 1,585,000 $ 110,802
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.
Note 8: 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, 2021, the outstanding amount of the advance was $3,953,624.
Note 9: 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 Balance Due in
June 30, 2020 Additions Deletions June 30, 2021 One Year
Governmental Activities:
Compensated Absences $ 7,755,903 $ 5,575,269 $ 4,713,395 $ 8,617,777 $ 5,234,000
68
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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, 2021, were as follows:
Outstanding
Amount at
June 30, 2021
City of Rancho Cucamonga:
Assessment District 93-1 $ 440,000
Special Tax Refunding Bond, Series 2015:
Community Facilities District No. 2000-01 242,000
Community Facilities District No. 2000-02 2,347,000
Community Facilities District No. 2001-01 Series A 5,419,000
Community Facilities District No. 2001-01 Series B 525,000
Community Facilities District No. 2006-01 3,119,000
Community Facilities District No. 2006-02 1,854,000
Community Facilities District No. 2000-03 5,731,000
Community Facilities District No. 2003-01 Series A 11,675,000
Community Facilities District No. 2003-01 Series B 2,260,000
Community Facilities District No. 2004-01 27,178,000
Successor Agency of the Former Rancho Cucamonga
Redevelopment Agency:
Multi-Family Housing Revenue Bond:
Series 1997A 1,484,273
Total $ 62,274,273
Note 11: Pension Plan Obligations
Deferred Deferred Pension
Net Pension Net Pension Pension Pension Expense
Liability Asset Outflows Inflows (Revenue)
CalPERS
City Miscellaneous Plan $ (56,325,772) $ - $10,229,838 $ 1,451,717 $10,830,099
Fire District Miscellaneous Plan (3,077,476) - 708,172 103,670 645,998
Fire District Safety Plan (41,792,462) - 15,766,851 1,335,144 14,338,163
Total CalPERS (101,195,710) - 26,704,861 2,890,531 25,814,260
PARS(see Note 12) - 3,876,755 1,716,339 2,594,857 579,312
Total Pension Plans $(101,195,710) $3,876,755 $28,421,200 $ 5,485,388 $26,393,572
69
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plan Obligations (Continued)
a. City Miscellaneous Employee Pension Plan
Plan Description
The City of Rancho Cucamonga contributes to the California Public Employees Retirement
System(PERS), an agent multiple-employer public employee defined benefit pension plan.
PERS provides retirement and disability benefits, annual cost-of-living adjustments and
death benefits to plan members and beneficiaries. PERS acts as a common investment
and administrative agent for participating public entities within the State of California.
Benefit provisions and all other requirements are established by state statute and City
ordinance. Copies of PERS' annual financial report may be obtained from its executive
office 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.
City Miscellaneous Plans
Tier 1 * Tier 2* Tier 3 PEPRA
Prior to September 1, 2010 July 4, 2011 January 1, 2013
Hire date September 1, 2010 but prior to and after and after
July 3, 2011
Benefit formula 2.5% @ 55 2.5% @ 55 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life monthly for life
Retirement age minimum 50 yrs minimum 50 yrs minimum 50 yrs minimum 52 yrs
Monthly benefits, as a % of 2.000% -2.500%, 2.000% -2.500%, 1.426% -2.418%, 1.000% -2.500%,
eligible compensation 50 yrs -55+ yrs, 50 yrs -55+ yrs, 50 yrs -63+ yrs, 52 yrs -67+ yrs,
respectively respectively respectively respectively
Required employee 8.000% 8.000% 7.000% 6.500%
contribution rates
Required employer 23.223% 23.223% 23.223% 23.223%
contribution rates
*Plan is closed to new entrants
70
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plan Obligations (Continued)
Employees Covered
As of the valuation date of June 30, 2019, the following employees were covered by the
benefit terms of the Plan:
Number of Members
Description City Miscellaneous Plans
Active members 458
Transferred members 222
Terminated members 342
Retired members and beneficiaries 357
Tota 1 1,379
Contribution Description
Section 20814(c)of the California Public Employees' Retirement Law(PERL)requires that
the employer contribution rates for all public employers be determined on an annual basis
by the actuary and shall be effective on the July 1 following notice of a change in the rate.
The total plan contributions are determined through the CalPERS' annual actuarial
valuation process. The actuarially determined rate is based on the estimated amount
necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by
employees during the year, and any unfunded accrued liability. The employer is required
to contribute the difference between the actuarially determined rate and the contribution
rate of employees.
For the year ended June 30, 2021, the employer contributions recognized as a reduction
to the net position liability for the Plan were$5,862,979.
Net Pension Liability
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 Plan is measured as of
June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to
June 30, 2020 using standard update procedures. A summary of principal assumptions
and methods used to determine the net pension liability is shown below.
71
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plan Obligations (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2019, valuation was rolled forward to determine the June 30, 2020, total
pension liability, based on the following actuarial methods and assumptions:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 7.15%
Inflation 2.50%
Projected Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS' Membership Data for
all Funds
Post Retirement Benefit Contract COLA up to 2.50% until Purchasing
Increase Power Protection Allowance Floor on
Purchasing Power applies, 2.50% thereafter
(1) The mortalitytable used was developed based on CalPERS-specific data.The
probabilities of mortalityare based on the 2017 CalPERS Experience Studyfor the
period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include
15 years projected mortality improvement using 90%of Scale MP-2016 published by
the Society of Actuaries. For more details on this table,please refer to the CalPERS
Experience Studyand Review of Actuarial Assumptions report from December2017
that can be found on the CaIPERS website.
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, CalPERS 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:
72
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plan Obligations (Continued)
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 ACFR, 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.
Changes in the Net Pension Liability
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 Net Pension
Liability Position Liability/(Assets)
(a) (b) (c)=(a)-(b)
Balance at:June 30,2019 $ 238,247,307 $ 185,199,228 $ 53,048,079
Changes Recognized for the Measurement Period:
Service Cost 4,521,001 - 4,521,001
Interest on the Total Pension Liability 16,720,224 16,720,224
Difference between Expected and Actual Experience (1,248,961) - (1,248,961)
Contributions from the Employer 5,863,963 (5,863,963)
Contributions from Employees 1,971,470 (1,971,470)
Net Investment Income 9,140,223 (9,140,223)
Benefit Payments including Refunds of Employee
Contributions (10,819,096) (10,819,096) -
Administrative Expense (261,085) 261,085
Other Miscellaneous Expense - - -
Net Changes During 2019/20 9,173,168 5,895,475 3,277,693
Balance at:June 30,2020 $ 247,420,475 $ 191,094,703 $ 56,325,772
73
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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/(Asset) 6.15% 7.15% 8.15%
City Miscellaneous Plan $ 90,292,873 $ 56,325,772 $ 28,392,515
Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the GASB Statement No. 68 accounting
valuation report may differ from the plan assets reported in the funding actuarial valuation
report due to several reasons. First, for the accounting valuations, CalPERS must keep
items such as deficiency reserves, fiduciary self-insurance and OPEB expense included
as assets. These amounts are excluded for rate setting purposes in the funding actuarial
valuation. In addition, differences may result from early Comprehensive Annual Financial
Report closing and final reconciled reserves. Detailed information about each pension
plan's fiduciary net position is available in the separately issued CalPERS financial reports.
See CalPERS website for additional information.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related
to Pensions
As of the start of the measurement period (July 1, 2019), the net pension liability was
$53,048,079. For the measurement period ending June 30, 2020 (the measurement date),
the City incurred a pension expense of$10,830,099 for the Plan.
As of June 30, 2021, the following were the reported deferred outflows of resources and
deferred inflows of resources related to the pension plan:
Deferred Outflows of Deferred Inflows of
Resources Resources
Current year contributions that occurred after the
measurement date of June 30, 2020 $ 6,250,173 $ -
Change of assumption 304,778 476,008
Difference between expected and actual experiences 2,020,002 975,709
Net difference between projected and actual earnings
on pension plan intestments 1,654,885 -
Total $ 10,229,838 $ 1,451,717
74
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plan Obligations (Continued)
Contributions subsequent to the measurement date in the amount of $6,250,173 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, 2022. 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 Outflowst(Inflows)
June 30: of Resources
2021 $ 34,931
2022 893,467
2023 806,659
2024 792,891
2025 -
Thereafter -
Total $ 2,527,948
b. Fire District Miscellaneous and Safety Employee Pension Plans
Plan Description
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.
75
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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 but prior to
July 9, 2011 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% 6.750%
Required employer contribution rates 37.260% 12.183% 8.444%
Fire District Safety Cost-Sharing Plans
Tier 1 * Tier 2 * PEPRA
Prior to July 9, 2011 January 1, 2013
Hire date July 9, 2011 but prior to and after
January 1, 2013
Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age minimum 50 yrs minimum 50 yrs minimum 50 yrs
Monthly benefits, as a % of eligible 3.000%, 50+ yrs 2.400% -3.000%, 2.000% -2.700%,
compensation 50 yrs -55+ yrs, 50 yrs -57+ yrs,
respectively respectively
Required employee contribution rates 9.000% 9.000% 13.000%
Required employer contribution rates 49.177% 22.460% 13.302%
*Plan is closed to new entrants
Employees Covered
As of the valuation date of June 30, 2019, the following employees were covered by the
benefit terms of the Plans:
Number of Members
Fire
Miscellaneous Fire Safety
Description Plans Plans
Active members 23 90
Transferred members 7 8
Terminated members 12 3
Retired members and beneficiaries 25 78
Tota 1 67 179
76
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plan Obligations (Continued)
Contribution Description
Section 20814(c)of the California Public Employees' Retirement Law(PERL)requires that
the employer contribution rates for all public employers be determined on an annual basis
by the actuary and shall be effective on the July 1 following notice of a change in the rate.
The total plan contributions are determined through the CalPERS' annual actuarial
valuation process. The actuarially determined rate is based on the estimated amount
necessary to pay the Plans' 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, 2021, the employer contributions recognized as a reduction
to the net position liability was$332,407 for the Miscellaneous Plan and$4,727,134 for the
Safety Plan for a total of$5,059,541 for the plans.
Net Pension Liability
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, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to
June 30, 2020 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, 2019 valuation was rolled forward to determine the June 30, 2020 total
pension liability, based on the following actuarial methods and assumptions:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 7.15%
Inflation 2.50%
Projected Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS' Membership Data for
all Funds
Post Retirement Benefit Contract COLA up to 2.50% until Purchasing
Increase Power Protection Allowance Floor on
Purchasing Power applies, 2.50% thereafter
(1) The mortalitytable used was developed based on CalPERS-specific data.The
probabilities of mortalityare based on the 2017 CalPERS Experience Studyfor the
period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include
15 years projected mortality improvement using 90%of Scale MP-2016 published by
the Society of Actuaries. For more details on this table,please refer to the CalPERS
Experience Studyand Review of Actuarial Assumptions report from December2017
that can be found on the CaIPERS website.
77
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plan Obligations (Continued)
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 ACFR, 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.
78
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plan Obligations (Continued)
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of
Resources Related to Pensions
As of June 30, 2021, the Fire District reported a net pension liability of $3,077,476 for its
proportionate shares of the Miscellaneous Plan and $41,792,462 for its proportionate
shares of the Safety Plan for a total of$44,869,938 for the cost-sharing plans.
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, 2020, 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, 2019, rolled forward to June 30, 2020, 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, 2019 and 2020, was as follows:
Fire Fire
Miscellaneous Plan Safety Plan
Proportion -June 30, 2019 0.0710% 0.6063%
Proportion -June 30, 2020 0.0730% 0.6273%
Changes - Increase (Decrease) 0.0020% 0.0210%
For the year ended June 30, 2021, the Fire District recognized pension expense of
$645,998 and $14,338,163 for the Miscellaneous Plan and the Safety Plan, respectively.
As of June 30, 2021, the following were the reported deferred outflows of resources and
deferred inflows of resources related to the pension plans:
Miscellaneous Safety
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Current year contributions that occurred after
the measurement date of June 30, 2020 $ 372,168 $ - $ 10,065,699 $
Change of Assumptions - 21,950 - 139,211
Difference between expected and actual
experience 158,591 - 3,240,793 -
Net difference between projected and actual
earnings on pension plan investments 91,421 - 908,326
Adjustment due to difference in proportions 85,992 4,770 1,552,033 -
Difference in actual contribution and
proportionate share of contribution calculation - 76,950 - 1,195,933
Total $ 708,172 $ 103,670 $ 15,766,851 $ 1,335,144
79
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plan Obligations (Continued)
The Miscellaneous Plan reported $372,168 and the Safety Plan reported $10,065,699 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, 2022. Other amounts reported as deferred outflows or deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Measurement Net Deferred Outflows/(Inflows)of
Period Resources
Ended June 30: Miscellaneous Plan Safety Plan
2021 $ 27,960 $ 1,217,437
2022 89,959 1,599,953
2023 70,567 1,093,496
2024 43,848 455,122
2025 - -
Thereafter - -
Total $ 232,334 $ 4,366,008
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%
Fire District Miscellaneous Plan $ 4,636,276 $ 3,077,476 $ 1,789,488
Fire District Safety Plan 62,572,069 41,792,462 24,740,829
$ 67,208,345 $ 44,869,938 $ 26,530,317
Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the GASB Statement No. 68 accounting
valuation report may differ from the plan assets reported in the funding actuarial valuation
report due to several reasons. First, for the accounting valuations, CalPERS must keep
items such as deficiency reserves, fiduciary self-insurance and OPEB expense included
as assets. These amounts are excluded for rate setting purposes in the funding actuarial
valuation. In addition, differences may result from early Comprehensive Annual Financial
Report closing and final reconciled reserves. Detailed information about each pension
plan's fiduciary net position is available in the separately issued CalPERS financial reports.
See CalPERS website for additional information.
80
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: PARS Retirement Enhancement Plan
1. General Information About the Plan
Plan Description
The City of Rancho Cucamonga sponsors the PARS Retirement Enhancement Plan, an
agent multiple-employer defined benefit pension plan. The Plan provides pension benefits
to miscellaneous members (Tier 1) and city council members (Tier 2). Benefits are equal
to a percentage of highest pay multiplied by years of service, with the percentage varying
by retirement age based on the total combined CalPERS age factor, but not exceeding
3% at 60. Sample rates are as follows:
Age Tier 1 and Tier 2
55 0.000%
56 0.100
57 0.200
58 0.300
59 0.400
60+ 0.500
The City and the Fire District have the right to amend, modify or terminate the plan at any
time. Separate audited financial statements are not prepared.
Benefits are increased by a 2%annual cost of living adjustment after retirement.There are
no employee contributions for either tier.
Benefits Provided
PARS provides supplemental retirement benefits to eligible employees of the City.
Employees are eligible to receive benefits under the plan if they meet the following
requirements: 1) a miscellaneous employee of the City or City Council on or after
December 1, 2002, 2) at least 56 years of age, 3) has completed 10 or more years of
full-time continuous employment at the City, 4) has terminated employment with the City
and has concurrently retired under CalPERS if an active CalPERS member, and
5) has applied for benefits under the plan. Benefits shall be in an amount equal to one-
twelfth of the product of the number of full and partial years of full-time continuous
employment with the City completed as of the Member's retirement times the Member's
final pay, times the PARS benefit factor. The total combined CalPERS age factor and
PARS benefit factor at retirement may not exceed three percent.
Hire date on or after December 1, 2002
Benefit formula one-twelfth of the product of the number of full and partial
years of full-time continuous employment with the City
completed as of the Member's retirement times the
Member's final pay, times the PARS benefit factor
Benefit vesting schedule 10 years service
Benefit payments monthly for life
Retirement age minimum 56 yrs
Monthly benefits, as a % of N/A- not based on % of eligible compensation
eliqible compensation
Required employee contribution rates 0.000%
Required employer contribution rates 4.400%
*This plan is closed to new entrants
81
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: PARS Retirement Enhancement Plan (Continued)
Employees Covered
As of the valuation date of June 30, 2020, the following employees were covered by the
benefit terms of the Plan:
Number of
Description Members
Active employees 171
Inactives currently receiving benefits 145
Tota 1 316
Contribution Description
The total plan contributions are determined through the PARS' annual actuarial valuation
process. The actuarially determined rate is the estimated amount necessary to finance the
costs of benefits earned by employees during the year,with an additional amount to finance
any unfunded accrued liability. Due to the City's pre-funding of its pension liability with
PARS, the City's Plan had a net pension asset as of the June 30, 2020, actuarial valuation
which positively impacted the actuarially determined rate.
For the year ended June 30, 2021, the employer contributions recognized as a decrease
to the pension liability were $626,595.
2. 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, 2020 using an annual actuarial valuation as of June 30, 2020, rolled forward to
June 30, 2020, 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, 2020 total pension liabilities were based on the following actuarial methods
and assumptions:
Actuarial Valuation Date June 30, 2020
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.00%
Inflation 2.75% annually
Salary Increases Aggregate -3.00%
Investment Rate of Return 6.00% net of pension investment and
administrative expenses, including inflation
Mortality Rate Table CalPERS 1997-2015 Experience Study
Post Retirement Benefit Post-retirement mortality projected fully
Increase generational with Society of Actuaries Scale
MP-2020
82
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: PARS Retirement Enhancement Plan (Continued)
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.
Target
Asset Class Allocation Real Return
Equity 48.25% 4.82%
Fixed Income 45.00% 1.47%
REITs 1.75% 3.76%
Cash 5.00% 0.06%
Changes in the Net Pension Asset
The following table shows the changes in net pension asset recognized over the
measurement period.
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
(a) (b) (c)=(a)-(b)
Balance at: June 30, 2019 $ 29,832,033 $ 33,386,085 $ (3,554,052)
Changes Recognized for the Measurement Period:
Service Cost 632,103 - 632,103
Interest on the Total Pension Liability 1,794,641 - 1,794,641
Changes of Benefit Terms 149,388 - 149,388
Difference between Expected and Actual Experience (933,120) - (933,120)
Changes of Assumptions (283,683) - (283,683)
Contributions from the Employer - 648,386 (648,386)
Contributions from Employees - -Net Investment Income - 1,090,928 (1,090,928)
Benefit Payments including Refunds of Employee
Contributions (1,106,896) (1,106,896) -
Administrative Expenses - (57,282) 57,282
Net Changes During 2019/20 252,433 575,136 (322,703)
Balance at: June 30, 2020 $ 30,084,466 $ 33,961,221 $ (3,876,755)
83
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: PARS Retirement Enhancement Plan (Continued)
Sensitivity of the Net Pension Asset to Changes in the Discount Rate
The following presents the net pension asset of the Plan as of the measurement date,
calculated using the discount rate of 6.00 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) $ 384,099 $ (3,876,755) $ (7,393,747)
3. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related
to Pensions
As of the start of the measurement period, July 1, 2019, the net pension asset was
$3,554,052. For the measurement period ending June 30, 2020, (the measurement date)
the City incurred a pension expense of$579,312 for the Plan.
As of June 30, 2021, the City has deferred outflows and deferred inflows of resources
related to pensions as follows:
Deferred Outflows Deferred Inflows of
of Resources Resources
Current year contributions that occurred after
the measurement date of June 30, 2020 $ 563,099 $ -
Difference between Expected and Actual
Experiences - 1,962,180
Change of Assumption 739,895 632,677
Net Difference between Projected and Actual
Earnings on Pension Plan Investments 413,345 -
Total $ 1,716,339 $ 2,594,857
$563,099 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, 2022. 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 Outflowst(inflows) of
June 30: Resources
2021 $ (414,804)
2022 (158,072)
2023 (203,947)
2024 (391,828)
2025 (233,711)
Thereafter (39,255)
Total $ (1,441,617)
84
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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.
Employees Covered
As of the June 30, 2020, measurement date, the following current and former employees
were covered by the benefit terms under the Plan:
Number of
Description Members
Active employees 113
Inactives entitled to but yet receiving benefits 7
Inactives currently receiving benefits 71
Tota 1 191
Funding Policy
The contribution requirement of plan members and the Fire District are established and
may be amended by the City Council. Currently, contributions are not required
from plan members. Contributions to the Plan include all amounts paid by the City directly
to the Plan, cash benefit payments made directly to plan members, and an implied subsidy
payment as determined by the June 30, 2020, actuarial valuation. These contributions
are netted against the reimbursements received from the CERBT. During the
June 30, 2020, measurement period, the City paid $980,582 in premiums for retiree
medical insurance and was reimbursed $840,883, and the implied subsidy was$315,000,
for a total contribution of$454,699.
85
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Other Post-Employment Benefits (Continued)
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2020 and the total
OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation dated June 30, 2019, that was rolled forward to determine the June 30, 2020,
total OPEB liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 5.50%
Inflation 2.75%
Salary Increases 3.00% per annum, in aggregate
Investment Rate of Return N/A
Mortality Rate CalPERS 1997-2015 Experience Study
Mortality Improvement Post-retirement mortality projected fully
generational with Scale MP-2019
Healthcare Trend Rate Non--Medicare-7% for 2022, decreasing to
an ultimate rate of 4.0% in 2076
Medicare-6.1% for 2022, decreasing to
an ultimate rate of 4.0% in 2076
Other Assumptions PEMHCA minimum increases of 4.25% annually;
Healthcare participation for future retirees at 100%
for Tier 1 and 75% if Tier 2 for currently covered,
and 50% for others
The long-term expected rate of return on OPEB plan investments was determined using a
building-block method in which expected future real rates of return (expected returns, net
of OPEB plan investment expense and inflation)are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting
the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major
asset class are summarized in the following table for the CERBT Strategy 3:
Long-term
Target expected real
Asset Class Allocation rate of return
Global Equity 22.00% 4.82%
Fixed income 49.00% 1.47%
TIPS 16.00% 1.29%
Commodities 5.00% 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.
86
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Other Post-Employment Benefits (Continued)
Changes in Assumptions
In December 2019, the ACA Excise Tax was repealed and removed from the actuarial
assumptions.
Changes in the OPEB Liability/(Asset)
The changes in the net OPEB liability/asset for the Plan are as follows:
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability(Asset)
(a) (b) (c)=(a)-(b)
Balance at: June 30, 2019 $ 26,066,681 $ 30,768,439 $ (4,701,758)
Changes Recognized for the Measurement Period:
Service Cost 362,464 - 362,464
Interest on the Total Pension Liability 1,418,049 1,418,049
Difference between Expected and Actual Experience - -
Changes of Assumptions (415,987) - (415,987)
Contributions from the Employer 454,699 (454,699)
Net Investment Income 1,949,800 (1,949,800)
Benefit Payments including Refunds of Employee
Contributions (1,292,883) (1,292,883) -
Administrative Expenses - (17,988) 17,988
Net Changes During 2019/20 71,643 1,093,628 (1,021,985)
Balance at: June 30, 2020 $ 26,138,324 $ 31,862,067 $ (5,723,743)
Sensitivity of the Net OPEB Liability/(Asset)to Changes in the Discount Rate
The following presents the net OPEB liability/asset 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, 2020:
Current
1%Decrease Discount Rate 1%Increase
(4.50%) (5.50%) (6.500/6)
Net OPEB Liability/ (Asset) $ (2,105,078) $ (5,723,743) $ (8,673,358)
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability/(asset) 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, 2020:
Current Healthcare
1%Decrease Cost Trent Rates 1%Increase
(6.00%/5.10% decreasing (7.00%/6.10% decreasing (8.00%/7.10% decreasing
to 3.00%) to 4.00%) to 5.00%)
Net OPEB Liability/(Asset) $ (8,992,381) $ (5,723,743) $ (1,700,251)
87
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Other Post-Employment Benefits (Continued)
OPEB Plan Fiduciary Net Position
CERBT issues a publicly available financial report that includes financial statements and
required supplementary information.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2021, the City recognized OPEB expense/(income) of
$597,457. As of June 30, 2021, the City reported deferred outflows of resources related to
OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date $ 32,589 $ -
Differences between expected and actual experiences - 2,922,452
Changes of assumptions - 542,919
Net difference between projected and actual earnings
on OPEB plan investments - 428,930
Tota 1 $ 32,589 $ 3,894,301
The $32,589 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, 2022. Other amounts reported as deferred
outflows of resources related to OPEB will be recognized as expense as follows:
Measurement Deferred
Period ended Outflowst(Inflows) of
June 30: Resources
2021 $ (672,525)
2022 (685,525)
2023 (728,280)
2024 (621,256)
2025 (569,664)
Thereafter (617,051)
Total $ (3,894,301)
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 City and Fire District 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.
88
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 14: Summary Disclosure of Self-Insurance Contingencies (Continued)
Liabilities of the City and the Fire District are reported when it is probable that a loss has
occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount
for claims that have been incurred but not reported (IBNRs). The result of the process to
estimate the claims liability is not an exact amount as it depends on many complex factors,
such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are
reevaluated periodically to consider the effects of economic and social factors. The estimate of
the claims liability also includes amounts for incremental claim adjustment expenses related to
specific claims and other claim adjustment expenses regardless of whether allocated to specific
claims. Estimated recoveries,for example from salvage or subrogation,are another component
of the claims liability estimate.
The City and Fire District have a $250,000 retention limit for workers compensation. The
Authority covers workers' compensation claims in excess of the $250,000 retention limit up to
$500,000. The Local Agency Workers Compensation Excess Pool provides excess coverage
to statutory limits. The City pays an annual premium to the Authority and may share in any
surplus revenues or may be required to pay additional assessments based upon the Authority's
operating results.
Effective July 1, 2015, the Fire District became a member of the Public Agency Risk Sharing
Authority of California (Authority) for its workers compensation insurance and concurrently
separated from the Public Agency Self-Insurance System (PASIS) of San Bernardino County.
The Fire District will maintain reserves to cover its June 30, 2021, 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
$8,767,965 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 Claim Ending
Ended Balance Estimates Payments Balance
June 30,2020 $ 3,093,644 $ 971,210 $ (1,344,028) $ 2,720,826
June 30,2021 2,720,826 1,055,446 (1,217,288) 2,558,984
89
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 15: Commitments and Contingencies
The following schedule summarizes the major contractual commitments as of June 30, 2021:
Expenditures
to date as of Remaining
Project Name Contract Amount June 30, 2021 Commitments
Fiber Optic Network $ 9,151,460 $ 390,925 $ 8,760,535
Etiwanda Grade Separation 9,000,000 2,484,395 6,515,605
Note 16: Fund Balance Classifications
Fund balances are presented in the following categories: nonspendable, restricted, committed,
assigned, and unassigned (see Note 1 for a description of these categories). A detailed
schedule of fund balances at June 30, 2021, is as follows:
Special Revenue Funds
Other
Development Lighting Housing Governmental
General Fund Impact Fees Districts Successor Agency Fire District Funds Total
Nonspendable:
Prepaid costs $ 225,620 $ - $ - $ 2,898 $ 347,727 $ 2,375 $ 578,620
Deposits 49,000 - - - - - 49,000
Advances to other funds 13,416,129 13,416,129
Total Nonspendable 13,690,749 2,898 347,727 2,375 14,043,749
Restricted for:
Community development projects - 7,949,066 - 139,195,772 - 2,826,509 149,971,347
Public safety-police - 768,792 - - - 1,578,125 2,346,917
Parks and recreation - 10,519,498 - - - 582,795 11,102,293
Engineering and public works 48,254,685 - 26,932,349 75,187,034
Capital improvement projects 999,388 886,066 2,114,915 34,830,630 38,830,999
Underground utilities - - - - - 11,732,766 11,732,766
Landscape maintenance - - - - - 25,641,543 25,641,543
Library services - 1,048,855 9,844,737 10,893,592
Technology replacement 2,000,531 - 25,119 - 2,025,650
General plan update 816,885 208,087 - 1,024,972
Contractual obligations 1,400,524 - - - 204,550 - 1,605,074
PERS rate stabilization 4,239,254 - - - 11,804,321 - 16,043,575
SB1186 certified access specialist services 175,014 175,014
Total Restricted 9,631,596 69,635,049 139,195,772 14,148,905 113,969,454 346,580,776
Committed to:
Law enforcement 6,037,243 - - - - 6,037,243
Vehicle and equipment replacement - - - - 4,037,887 - 4,037,887
Working capital 4,758,020 - - - 23,822,475 - 28,580,495
City facilities capital repair 29,057,877 - - - - - 29,057,877
Changes in economic circumstances 19,006,176 8,623,493 27,629,669
Employee leave payouts 4,468,744 4,620,852 9,089,596
Self insurance 8,767,965 - - - - - 8,767,965
Economic development strategic reserve 1,084,078 - - - - - 1,084,078
Seasonal weather emergency reserve 100,000 - 100,000
Fire District facilities capital repair - 3,708,284 3,708,284
PASIS worker's compensation tail claims 359,760 359,760
Total Committed 73,280,103 45,172,751 118,452,854
Assigned to:
800 MHz radio system replacement 550,697 - - - 3,005,044 - 3,555,741
City infrastructure 20,265,083 - 20,265,083
Capital projects - 25,300,264 25,300,264
Animal Center operations 1,050,354 - 1,050,354
special services 2,728,208 - - - - 2,728,208
Sphere of influence issues 658,604 - - - - 658,604
Mobile home park program 195,607 195,607
Fiber master plan 2,314,213 - 2,314,213
Continuing operations 133,028 159,513 292,541
Community services programs 2,258,443 2,258,443
Total Assigned 30,154,237 28,464,821 58,619,058
Unassigned (4,276,307) (14,612) (4,290,919)
Totals $ 126,756,685 $ 69,635,049 $ (4,276,307) $ 139,198,670 $ 88,134,204 $ 113,957,217 $ 533,405,518
90
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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.
In accordance with the timeline set forth in the Bill (as modified by the California
Supreme Court on December 29, 2011) all redevelopment agencies in the State of California
were dissolved and ceased to operate as a legal entity as of February 1, 2012.
a. Cash and investments
Cash and investments reported in the accompanying financial statements consisted of
the following:
Cash and investments $ 22,819,206
Cash and investments with fiscal agent 85
$ 22,819,291
91
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
b. Loans Receivable
Notes and loans receivables consist of the following at June 30, 2021:
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, 2021, the
outstanding balance was $10,259,967.
c. Long-Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the
Successor Agency as of June 30, 2021, follows:
Balance Balance Due Within
July 1,2020 Additions Repayments June 30, 2021 One Year
Tax Allocation Bonds
Tax Allocation Refunding
Bonds-2007 Issue $ 57,730,000 $ $ 2,685,000 $ 55,045,000 $ 2,855,000
Tax Allocation Refunding
Bonds-2014 Issue 140,380,000 7,925,000 132,455,000 8,320,000
Tax Allocation Refunding
Bonds-2016 Issue 51,695,000 1,735,000 49,960,000 1,800,000
Total Bonds 249,805,000 12,345,000 237,460,000 12,975,000
Developer Loans
Bank of New York 6,423,360 854,379 5,568,981 931,041
Total Developer Loans 6,423,360 854,379 5,568,981 931,041
Total $ 256,228,360 $ $ 13,199,379 243,028,981 $ 13,906,041
Unamortized Premium 21,880,384
Total $ 264,909,365
92
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Tax Allocation Bonds
1. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project,
Housing Set-aside Tax Allocation Bonds, Tax Exempt Series 2007A and Taxable
Series 2007B. $155,620,000. In November 2007, the Rancho Cucamonga
Redevelopment Agency issued $73,305,000 Rancho Redevelopment Project Housing
Set-Aside Tax Allocation Bonds Tax-Exempt Series 2007A and
$82,315,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds
Taxable series 2007B to (a) refund and redeem the Agency's outstanding
Rancho Redevelopment Project 1996 Housing Set-Aside Tax Allocation Bonds,
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.
93
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The balance at June 30, 2021, amounted to $55,045,000 plus unamortized bond
premium of$226,536. The following schedule illustrates the debt service requirements
to maturity for the 2007 Tax Allocation Refunding Bonds as of June 30, 2021:
Year Ending
June 30 Principal Interest
2022 $ 2,855,000 $ 3,357,528
2023 3,040,000 3,172,955
2024 3,225,000 2,976,798
2025 3,430,000 2,768,430
2026 3,640,000 2,547,069
2027-2031 38,660,000 6,883,190
2032 195,000 6,105
Total $ 55,045,000 $ 21,712,075
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, 2021, amounted to $132,455,000 plus unamortized bond
premium of$16,239,895 and unamortized gain on defeasance of$1,527,507.
94
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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, 2021:
Year Ending
June 30 Principal Interest
2022 $ 8,320,000 $ 6,414,750
2023 8,735,000 5,988,375
2024 9,175,000 5,540,625
2025 9,635,000 5,070,375
2026 10,115,000 4,576,625
2027-2031 58,685,000 14,569,375
2032-2033 27,790,000 1,406,500
Total $ 132,455,000 $ 43,566,625
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, 2021, amounted to $49,960,000 plus unamortized bond
premium of$5,413,953 and unamortized loss on defeasance of$2,095,530.
95
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
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, 2021:
Year Ending
June 30 Principal Interest
2022 $ 1,800,000 $ 2,065,800
2023 1,870,000 1,983,050
2024 1,965,000 1,887,175
2025 2,060,000 1,786,550
2026 2,170,000 1,680,800
2027-2031 2,275,000 7,620,875
2032-2035 37,820,000 3,109,800
Total $ 49,960,000 $ 20,134,050
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, 2021, amounted to$5,568,981.
The following schedule illustrates the debt service requirements to maturity for the
Bank of New York loan as of June 30, 2021:
Year Ending
June 30 Principal Interest
2022 $ 931,041 $ 468,959
2023 1,014,580 385,420
2024 1,105,615 294,385
2025 1,204,820 195,180
2026 1,312,925 87,075
Total $ 5,568,981 $ 1,431,019
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.
96
CITY OF RANCHO CUCAMONGA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
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 $329,872,750 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 $27,018,962 and the debt service obligation on the bonds
was $24,303,197.
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, 2021, is $1,865,600.
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 14.
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, 2021, the Agency made payments totaling $576,465.
Note 18: Restatement-GASB Statement No. 84, Fiduciary Activities
For the year ended June 30, 2021,the City adopted the provisions of GASB Statement No.
84, Fiduciary Activities, which established criterion for identifying and reporting fiduciary
activities. As a result of the implementation, June 30, 2020 net position was restated by
$8,618,122 to account for the restatement of the June 30, 2020 fund balances for the
General Fund by$421,992 and an aggregated total for nonmajor special revenue funds by
$8,196,130 as of June 30, 2021.
97
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98
REQUIRED SUPPLEMENTARY
INFORMATION
99
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100
CITY OF RANCHO CUCAMONGA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
J U N E 30, 2021
Budgetary Comparison Information
a. Budget Data
General Budget Policies
The annual budget adopted by the City Council provides for the general operation of the City. It
includes proposed expenditures and the means of financing them. The City Council approves each
year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The
Council conducts budget study sessions prior to holding a public hearing to adopt the budget.
When required during the fiscal year, 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, and Capital Project
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, 2021, the SB 140, the AB 2928 Traffic Congestion Relief fund,
the Energy Efficient and Conservation Block Grant special revenue funds 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.
101
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
GENERALFUND
YEAR ENDED JUNE 30,2021
Variance wrt
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1,as restated $ 121,259,317 $ 121,259,317 $ 121,259,317 $ -
Resources(Inflows):
Taxes 69,192,630 71,070,340 76,601,967 5,531,627
Licenses and permits 4,672,200 4,907,470 5,667,304 759,834
Intergovernmental 660,030 830,420 688,302 (142,118)
Charges for services 7,626,520 4,416,490 4,973,242 556,752
Use of money and property 3,290,280 1,312,660 814,603 (498,057)
Fines and forfeitures 1,151,200 1,027,210 1,227,698 200,488
Contributions 109,000 28,100 17,698 (10,402)
Miscellaneous 3,740,280 4,206,360 3,272,491 (933,869)
Transfers in 1,727,040 4,347,600 4,265,848 (81,752)
Proceeds from sale of capital asset 50,070 25,990 23,317 (2,673)
Amounts Available for Appropriations 213,478,567 213,431,957 218,811,787 5,379,830
Charges to Appropriations(Outflow):
General government
General overhead 3,206,870 3,618,320 3,456,316 162,004
Personnel overhead 1,261,460 1,352,540 1,380,852 (28,312)
City council 132,470 119,280 115,582 3,698
City management 1,016,030 948,150 919,089 29,061
City clerk 1,940 2,040 2,036 4
Administrative services 186,530 189,130 188,069 1,061
Business licensing 369,880 357,290 344,596 12,694
City facilities 1,021,620 876,870 828,885 47,985
Finance 1,520,910 1,440,850 1,433,772 7,078
Innovation and technology 3,784,170 3,861,320 3,708,192 153,128
Human resources 651,090 569,260 561,478 7,782
Procurement 247,010 260,830 258,672 2,158
Risk management 249,480 312,060 272,212 39,848
Treasury management 12,300 10,630 10,207 423
Community affairs 528,120 474,570 445,881 28,689
Records management 1,279,650 562,540 560,601 1,939
Healthy RC program 633,230 573,090 569,580 3,510
Public safety-police
Sheriff contract services 45,201,630 45,033,580 43,248,201 1,785,379
Public safety-animal center
Animal center 3,151,730 2,604,200 2,399,155 205,045
Community development
Planning 1,618,600 1,827,250 1,791,541 35,709
Planning commission 15,170 15,190 9,285 5,905
Community improvement 782,010 711,060 632,402 78,658
Administration 954,150 3,280,150 3,202,173 77,977
Building and safety 1,814,530 1,762,790 1,750,795 11,995
Community services
Administration 1,579,750 1,188,380 1,127,289 61,091
Central Park 1,383,370 545,150 526,281 18,869
Lions Center 885,410 339,750 332,272 7,478
RC Family Resource Center 175,810 158,780 158,147 633
RC Sports Center 663,220 306,840 296,406 10,434
Special events 246,780 172,630 158,245 14,385
Victoria Gardens Cultural Center 2,404,260 667,610 661,988 5,622
Contract classes 592,420 204,130 201,851 2,279
Park services 188,390 149,210 132,878 16,332
Engineering and public works
Engineering administration 494,480 718,600 525,206 193,394
Development management 963,370 921,960 917,034 4,926
NPDES 303,650 248,600 246,984 1,616
Project management 529,590 596,230 588,557 7,673
Traffic management 255,590 182,590 175,423 7,167
Park maintenance 2,728,470 2,844,320 2,627,914 216,406
Vehicle and equipment maintenance 1,068,040 1,039,870 1,013,708 26,162
City facilities maintenance 3,610,070 3,378,680 3,096,680 282,000
Street maintenance 2,204,740 2,057,690 1,954,809 102,881
Fire facilities maintenance 456,970 324,780 310,090 14,690
Capital outlay 3,086,000 8,361,690 7,832,830 528,860
Debt service:
Interest and fiscal charges 8,200 8,200 8,195 5
Transfers out 3,926,670 4,002,740 3,605,636 397,104
Total Charges to Appropriations 97,395,830 99,181,420 94,587,995 4,593,425
Budgetary Fund Balance,June 30(Budgetary Basis) $ 116,082,737 $ 114,250,537 124,223,792 $ 9,973,255
Encumbrances 2,532,893
Budgetary Fund Balance,June 30(GAAP Basis) $ 126,756,685
102
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
DEVELOPMENT IMPACT FEES
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 64,413,487 $ 64,413,487 $ 64,413,487 $ -
Resources(Inflows):
Intergovernmental - 38,730 38,727 (3)
Charges for services 232,180 417,930 385,642 (32,288)
Use of money and property 1,092,120 757,220 (16,701) (773,921)
Developer participation 4,560,730 9,120,000 11,458,167 2,338,167
Miscellaneous - 126,190 255,836 129,646
Transfers in - 99,500 99,440 (60)
Amounts Available for Appropriations 70,298,517 74,973,057 76,634,598 1,661,541
Charges to Appropriation(Outflow):
Public safety-police - 730 721 9
Public safety-animal services - 460 451 9
Community development 173,860 165,490 116,569 48,921
Community services 2,020 36,110 36,094 16
Engineering and public works 710,150 691,500 680,233 11,267
Capital outlay 1,890,650 8,495,391 7,353,911 1,141,480
Total Charges to Appropriations 2,776,680 9,389,681 8,187,979 1,201,702
Budgetary Fund Balance,June 30(Budgetary Basis) $ 67,521,837 $ 65,583,376 68,446,619 $ 2,863,243
Encumbrances 1,188,430
Budgetary Fund Balance,June 30(GAAP Basis) $ 69,635,049
103
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
LIGHTING DISTRICTS
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ (4,886,654) $ (4,886,654) $ (4,886,654) $
Resources(Inflows):
Taxes 2,131,220 2,131,220 2,129,125 (2,095)
Use of money and property 108,750 63,880 (20,035) (83,915)
Miscellaneous - - 41,580 41,580
Transfers in 408,330 480,400 336,229 (144,171)
Amounts Available for Appropriations (2,238,354) (2,211,154) (2,399,755) (188,601)
Charges to Appropriation(Outflow):
General government 1,978,640 2,038,370 1,878,930 159,440
Debt service:
Interest and fiscal charges 111,990 111,990 111,944 46
Total Charges to Appropriations 2,090,630 2,150,360 1,990,874 159,486
Budgetary Fund Balance,June 30(Budgetary Basis) $ (4,328,984) $ (4,361,514) (4,390,629) $ (29,115)
Encumbrances 114,322
Budgetary Fund Balance,June 30(GAAP Basis) $ (4,276,307)
104
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
HOUSING SUCCESSOR AGENCY
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 139,693,495 $ 139,693,495 $ 139,693,495 $
Resources(Inflows):
Use of money and property 46,000 22,820 (3,194) (26,014)
Miscellaneous 12,000 12,000 111,727 99,727
Amounts Available for Appropriations 139,751,495 139,728,315 139,802,028 73,713
Charges to Appropriation(Outflow):
Community development 490,500 603,780 603,358 422
Capital outlay 3,505,200 3,505,200 - 3,505,200
Total Charges to Appropriations 3,995,700 4,108,980 603,358 3,505,622
Budgetary Fund Balance,June 30(Budgetary Basis) $ 135,755,795 $135,619,335 139,198,670 $ 3,579,335
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $139,198,670
105
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
FIRE DISTRICT
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 80,342,988 $80,342,988 $80,342,988 $ -
Resources(Inflows):
Taxes 44,437,590 50,576,860 52,829,035 2,252,175
Licenses and permits 16,500 1,000 4,970 3,970
Intergovernmental - 25,000 25,000 -
Charges for services 2,300 2,260 2,178 (82)
Use of money and property 1,289,790 1,813,830 2,240,078 426,248
Fines and forfeitures 118,000 173,360 93,090 (80,270)
Miscellaneous 1,583,130 2,693,720 2,470,002 (223,718)
Transfers in - 421,100 379,711 (41,389)
Proceeds from sale of capital asset - 4,500 5,473 973
Amounts Available for Appropriations 127,790,298 136,054,618 138,392,525 2,337,907
Charges to Appropriation(Outflow):
Public safety-fire protection 40,222,880 45,028,620 43,135,891 1,892,729
Capital outlay 5,204,550 10,591,450 9,440,503 1,150,947
Debt service:
Interest and fiscal charges 47,560 47,560 47,559 1
Transfers out 117,670 113,350 113,346 4
Total Charges to Appropriations 45,592,660 55,780,980 52,737,299 3,043,681
Budgetary Fund Balance,June 30(Budgetary Basis) $ 82,197,638 $80,273,638 85,655,226 $ 5,381,588
Encumbrances 2,478,978
Budgetary Fund Balance,June 30(GAAP Basis) $88,134,204
106
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
FEDERAL GRANTS FUND
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ - $ - $ - $
Resources(Inflows):
Intergovernmental - 19,341,890 5,730,617 (13,611,273)
Use of money and property - 15,620 - (15,620)
Amounts Available for Appropriations - 19,357,510 5,730,617 (13,626,893)
Charges to Appropriation(Outflow):
General government - 2,009,040 2,009,109 (69)
Transfers out - 3,915,080 3,721,508 193,572
Total Charges to Appropriations - 5,924,120 5,730,617 193,503
Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ 13,433,390 - $ (13,433,390)
Encumbrances
Budgetary Fund Balance,June 30(GAAP Basis) $ -
107
CITY OF RANCHO CUCAMONGA
MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017 2018 2019 2020 2021
TOTAL PENSION LIABILITY
Service Cost $ 4,661,973 $ 4,342,707 $ 4,193,507 $ 4,743,810 $ 4,869,644 $ 4,749,046 $ 4,521,001
Interest 12,370,506 12,931,479 13,651,750 14,301,966 15,134,775 16,072,077 16,720,224
Difference between Expected and Actual Experience - (3,882,722) (1,557,585) (1,926,722) (1,496,029) - (1,248,961)
Changes in Assumptions - (3,352,733) - 12,495,866 2,212,199 2,512,596
Benefit Payments,Including
Refunds of Employee Contributions (5,229,846) (5,847,197) (6,606,205) (7,626,368) (8,728,016) (9,967,183) (10,819,096)
Net Change in Total Pension Liability 11,802,633 4,191,534 9,681,467 21,988,552 11,992,573 13,366,536 9,173,168
Total Pension Liability-Beginning 165,224,012 177,026,645 181,218,179 190,899,646 212,888,198 224,880,771 238,247,307
Total Pension Liability-Ending(a) $ 177,026,645 $ 181,218,179 $ 190,899,646 $212,888,198 T 224,8 00,771 $238,247,307 $247,420,475
PLAN FIDUCIARY NET POSITION
Contributions-Employer $ 3,520,721 $ 3,433,074 $ 3,745,698 $ 4,207,753 $ 4,622,851 $ 5,133,141 $ 5,863,963
Contributions-Employee 2,156,312 2,074,191 2,120,443 2,150,126 2,032,448 1,976,074 1,971,470
Net Investment Income 21,772,350 3,320,843 782,082 16,691,043 13,809,497 11,584,539 9,140,223
Benefit Payments,Including
Refunds of Employee Contributions (5,229,846) (5,847,197) (6,606,205) (7,626,368) (8,728,016) (9,967,183) (10,819,096)
Administrative Expense (168,508) (91,249) (220,985) (256,923) (126,024) (261,085)
Net Plan to Plan Resource Movement (407) -
Other Miscellaneous Income/(Expense) 242,458 407
Net Change in Fiduciary Net Position 22,219,537 2,812,403 (49,231) 15,201,569 11,721,908 8,600,954 5,895,475
Plan Fiduciary Net Position-Beginning 124,692,088 146,911,625 149,724,028 149,674,797 164,876,366 176,598,274 185,199,228
Plan Fiduciary Net Position-Ending(b) $ 146,911,625 $ 149,724,028 $ 149,674,797 $164,876,366 $ 176,598,274 $ 185,199,228 $191,094,703
Plan Net Pension Liability/(Assets)-Ending(a)-(b) $ 30,115,020 $ 31,494,151 $ 41,224,849 $ 48,011,832 $ 48,282,497 $ 53,048,079 $ 56,325,772
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 82.99% 82.62% 78.40% 77.45% 78.53% 77.73% 77.23
Covered Payroll $ 25,819,515 $ 25,082,858 $ 25,682,090 $ 26,459,567 $ 27,268,033 $ 27,077,712 $ 26,743,856
Plan Net Pension Liability/(Asset)as a Percentage of
Covered Payroll 116.64% 125.56% 160.52% 181.45% 177.07% 195.91% 210.61
(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 seven years are shown.
Notes to Schedule:
Benefit Chanaes:
The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30,2019 valuation. However,offers of Two Years Additional
Service Credit(a.k.a.Golden Handshakes)that occurred after the June 30,2019 valuation date are not included in the figures above,unless the liability impact is deemed to be material by the
plan actuary.
Changes of Assumptions:
None in 2019 or 2020.In 2018,demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December
2017.There were no changes in discount rate in 2018.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.
108
CITY OF RANCHO CUCAMONGA
MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017 2018 2019 2020 2021
Actuarially Determined Contribution $ 3,433,074 $ 3,745,756 $ 4,192,505 $ 4,642,132 $ 5,135,066 $ 5,862,979 $ 6,250,173
Contribution in Relation to the Actuarially Determined Contribution (3,433,074) (3,745,756) (4,192,505) (4,642,132) (5,135,066) (5,862,979) (6,250,173)
Contribution Deficiency(Excess) $ $ $ $ $ $ $
Covered Payroll $25,082,858 $25,682,090 $ 26,459,567 $27,268,038 $27,077,712 26,743,856 24,764,323
Contributions as a Percentage of Covered Payroll 13.69% 14.59% 15.84% 17.02% 18.96% 21.92% 25.24
(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 seven years are shown.
Note to Schedule:
Valuation Date: June 30,2019
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll,closed
Asset valuation method Direct rate smoothing
Inflation 2.500
Payroll Growth 2.750
Projected Salary Increases Varies by Entry Age and Service
Investment Rate of Return 7.15
Retirement Age All other actuarial assumptions used in the June 30,2019 valuation were based on the results of an actuarial experience study for
the period from 1997 to 2015,including updates to salary increase,mortality and retirement rates.The Experience Study report may
be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.
Mortality The mortality table used was developed based on CaIPERS'specific data.The table includes 15 years of mortality improvements
using 90 percent of Society of Actuaries'Scale 2016.For more details on this table,please refer to the 2017 experience study
report.
109
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 2020 2021
Proportion of the Net Pension Liability 0.02166% 0.02652% 0.06568% 0.06723% 0.06897% 0.07095% 0.07296
Proportionate Share of the Net Pension Liability $ 1,348,194 $ 1,819,909 $ 2,281,501 $ 2,650,258 $ 2,599,301 $ 2,841,232 $3,077,476
Covered Payroll $ 1,474,657 $ 1,437,227 $ 1,524,047 $ 1,577,007 $ 1,619,191 $ 1,593,099 $1,771,563
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 91.42% 126.63% 149.70% 168.06% 160.53% 178.35% 173.72
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 79.82% 78.40% 75.87% 75.39% 77.69% 77.73% 77.71
Notes to Schedule:
Benefit Changes:
The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30,2019 valuation. However,offers of Two Years Additional
Service Credit(a.k.a.Golden Handshakes)that occurred after the June 30,2019 valuation date are not included in the figures above,unless the liability impact is deemed to be material by the
plan actuary.
Changes of Assumptions:
None in 2019 or 2020.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 discount rate in 2018.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 seven years are shown.
110
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 2020 2021
Actuarially Determined Contribution $ 210,430 $ 219,901 $ 238,202 $ 254,681 $ 283,247 $ 332,407 $ 372,168
Contribution in Relation to the Actuarially Determined Contribution (210,430) (219,901) (238,202) (254,681) (283,247) (332,407) (372,168)
Contribution Deficiency(Excess) $ $ $ $ $ $ $
Covered Payroll $ 1,437,227 $ 1,524,047 $ 1,577,007 $ 1,619,191 $ 1,593,099 $ 1,771,563 $1,798,563
Contributions as a Percentage of Covered Payroll 14.64% 14.43% 15.10% 15.73% 17.78% 18.76% 20.69
(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 seven years are shown.
Note to Schedule:
Valuation Date: June 30,2019
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll,closed
Asset valuation method Direct rate smoothing
Inflation 2.500
Payroll Growth 2.750
Projected Salary Increases Varies by Entry Age and Service
Investment Rate of Return 7.15
Retirement Age All other actuarial assumptions used in the June 30,2018 valuation were based on the results of an actuarial experience
study for the period from 1997 to 2015,including updates to salary increase,mortality and retirement rates.The Experience
Study report may be accessed on the CaIPERS website at www.calpers.ca.gov under Forms and Publications.
Mortality The mortality table used was developed based on CaIPERS' specific data. The table includes 15 years of mortality
improvements using 90 percent of Society of Actuaries'Scale 2016.For more details on this table,please refer to the 2017
experience study report.
111
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)
2015 2016 2017 2018 2019 2020 2021
Proportion of the Net Pension Liability 0.31131% 0.33146% 0.57027% 0.57286% 0.59184% 0.60633% 0.62729
Proportionate Share of the Net Pension Liability $ 19,373,864 $22,750,560 $29,535,666 $34,229,524 $34,726,501 $37,850,274 $41,792,462
Covered Payroll $ 10,396,960 $ 10,554,523 $ 11,373,722 $ 11,451,394 $ 11,663,014 $ 12,029,495 $12,348,120
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 186.34% 215.55% 259.68% 298.91% 297.75% 314.65% 338.45
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 79.82% 78.40% 72.69% 71.74% 73.39% 73.37% 73.12
Notes to Schedule:
Benefit Changes:
The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30,2019 valuation. However,offers of Two Years Additional
Service Credit(a.k.a.Golden Handshakes)that occurred after the June 30,2019 valuation date are not included in the figures above,unless the liability impact is deemed to be material by the
plan actuary.
Changes of Assumptions:
None in 2019 or 2020.In 2018,demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December
2017.There were no changes in discount rate in 2018.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 seven years are shown.
112
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 2020 2021
Actuarially Determined Contribution $ 2,827,842 $ 3,007,980 $ 3,273,056 $ 3,577,900 $ 4,101,079 $ 4,727,134 $10,065,699
Contribution in Relation to the Actuarially Determined Contribution (2,827,842) (3,007,980) (3,273,056) (3,577,900) (4,101,079) (4,727,134) (10,065,699)
Contribution Deficiency(Excess) $ $ $ $ $ $ $
Covered Payroll $10,554,523 $11,373,722 $11,451,394 $11,663,014 $12,029,495 $12,348,120 $13,128,489
Contributions as a Percentage of Covered Payroll 26.79% 26.45% 28.58% 30.68% 34.09% 38.28% 76.67
(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 six years are shown.
Note to Schedule:
Valuation Date: June 30,2019
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll,closed
Asset valuation method Direct rate smoothing
Inflation 2.500
Payroll Growth 2.750
Projected Salary Increases Varies by Entry Age and Service
Investment Rate of Return 7.15
Retirement Age All other actuarial assumptions used in the June 30,2019 valuation were based on the results of an actuarial experience
study for the period from 1997 to 2015,including updates to salary increase,mortality and retirement rates.The Experience
Study report may be accessed on the CaIPERS website at www.calpers.ca.gov under Forms and Publications.
Mortality The mortality table used was developed based on CaIPERS' specific data. The table includes 15 years of mortality
improvements using 90 percent of Society of Actuaries'Scale 2016.For more details on this table,please refer to the 2017
experience study report.
113
CITY OF RANCHO CUCAMONGA
PARS RETIREMENT ENHANCEMENT PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY/(ASSET)AND RELATED RATIOS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017 2018 2019 2020 2021
TOTAL PENSION LIABILITY
Service Cost $ 719,000 $ 743,000 $ 716,000 $ 774,673 $ 736,116 $ 660,456 $ 632,103
Interest 1,329,000 1,425,000 1,523,000 1,639,815 1,731,246 1,716,445 1,794,641
Changes of Benefits Terms - - 538,000 - - - 149,388
Difference Between Expected and Actual Experience (110,000) (1,975,546) (933,120)
Changes in Assumptions 2,100,000 (683,589) (283,683)
Changes in Benefit Terms - (4,236) (323,105)
Benefit Payments,Including Refunds of Employee Contributions (495,000) (546,000) (631,000) (719,919) (837,663) (983,660) (1,106,896)
Net Change in Total Pension Liability 1,553,000 1,622,000 4,136,000 1,690,333 (1,352,541) 1,393,241 252,433
Total Pension Liability-Beginning 20,790,000 22,343,000 23,965,000 28,101,000 29,791,333 28,438,792 29,832,033
Total Pension Liability-Ending(a) $22,343,000 $23,965,000 $28,101,000 $ 29,791,333 $ 28,438,792 $ 29,832,033 $30,084,466
PLAN FIDUCIARY NET POSITION
Contribution-Employer $ 497,000 $ 467,000 $ 312,000 $ 279,830 $ 657,424 $ 609,239 $ 648,386
Net Investment Income J 3,177,000 660,000 21,000 2,872,446 1,865,280 1,890,679 1,090,928
Benefit Payments,Including Refunds of Employee Contributions (495,000) (546,000) (631,000) (719,919) (837,663) (983,660) (1,106,896)
Other Changes in Fiduciary Net Position (33,000) (47,000) (35,000) (52,639) (39,500) (38,432) (57,282)
Net Change in Fiduciary Net Position 3,146,000 534,000 (333,000) 2,379,718 1,645,541 1,477,826 575,136
Plan Fiduciary Net Position-Beginning 24,536,000 27,682,000 28,216,000 27,883,000 30,262,718 31,908,259 33,386,085
Plan Fiduciary Net Position-Ending(b) $27,682,000 $28,216,000 $27,883,000 $ 30,262,718 $ 31,908,259 $ 33,386,085 $33,961,221
Plan Net Pension Liability/(Asset)-Ending(a)-(b) $ (5,339,000) $ (4,251,000) $ 218,000 $ (471,385) $ (3,469,467) $ (3,554,052) $(3,876,755)
Plan Fiduciary Net Position as a Percentage of the Total Pension
Liability 123.90% 117.74% 99.22% 101.58% 112.20% 111.91% 112.89
Covered Payroll $24,363,588 $22,739,613 $21,593,214 $ 19,909,987 $ 18,246,690 $ 16,119,382 $14,750,069
Plan Net Pension Liability/(Asset)as a Percentage of Covered
Payroll -21.91% -18.69% 1.01% -2.37% -19.01% -22.05% -26.28
(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 seven years are shown.
Notes to Schedule:
Benefit Changes:In 2020,employer paid member contributions for Fire Management employee group added. There were no benefit changes in 2019.In 2018,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: In 2020,Mortality improvement scale was updated to Scale MP2020. There were no changes of assumptions in 2019.In 2018,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 MP-
2018.
114
CITY OF RANCHO CUCAMONGA
PARS RETIREMENT ENHANCEMENT PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017 2018 2019 2020 2021
Actuarially Determined Contribution $ 467,000 $ 307,590 $ 278,740 $ 657,424 $ 628,911 $ 626,595 $ 563,099
Contribution in Relation to the Actuarially Determined Contribution (467,000) (307,590) (278,740) (657,424) (628,911) (626,595) (563,099)
Contribution Deficiency(Excess) $ $ $ $ $ $ $
Covered Payroll $22,739,613 $21,593,214 $19,909,987 $18,246,690 $16,119,382 $14,750,069 $13,301,202
Contributions as a Percentage of Covered Payroll(2) 2.05% 1.42% 1.40% 3.60% 3.90% 4.25% 4.23
(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 seven 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 30,2020
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Amortization period 7-year fixed period
Assets valuation method Investment gains and losses spread over 5-years
Discount rate 6.00
Inflation 2.75
Salary Increases 3.0%annually
Investment rate of return 6.00%net of pension investment and administrative expenses,including inflation.
Retirement aqe CaIPERS 1997-2015 Experience Study
Mortality Post-retirement mortality oroiected fully qenerational with Scale MP-2020
115
CITY OF RANCHO CUCAMONGA
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY/(ASSET)AND RELATED RATIOS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2018 2019 2020 2021
Total OPEB Liability
Service cost $ 400,000 $ 412,316 $ 424,685 $ 362,464
Interest on the total OPEB liability 1,516,000 1,562,020 1,606,264 1,418,049
Actual and expected experience difference - - (3,896,602) -
Changes in assumptions (239,453) (415,987)
Changes in benefit terms
Benefit payments (1,046,000) (1,143,902) (1,216,647) (1,292,883)
Net change in total OPEB liability 870,000 830,434 (3,321,753) 71,643
Total OPEB liability-beginning 27,688,000 28,558,000 29,388,434 26,066,681
Total OPEB liability-ending(a) 28,558,000 29,388,434 26,066,681 26,138,324
Plan Fiduciary Net Position
Contribution-employer 281,000 998,969 469,195 454,699
Net investment income 1,429,000 1,339,488 2,114,944 1,949,800
Benefit payments (1,046,000) (1,143,902) (1,216,647) (1,292,883)
Administrative expense (14,000) (52,080) (8,528) (17,988)
Net change in plan fiduciary net position 650,000 1,142,475 1,358,964 1,093,628
Plan fiduciary net position-beginning 27,617,000 28,267,000 29,409,475 30,768,439
Plan fiduciary net position-ending(b) $ 28,267,000 $ 29,409,475 $ 30,768,439 $31,862,067
Net OPEB Liability/(Asset)-ending(a)-(b) $ 291,000 $ (21,041) $ (4,701,758) $ (5,723,743)
Plan fiduciary net position as a percentage of the total OPEB liability 98.98% 100.07% 118.04% 121.90%
Covered-employee payroll $ 15,842,421 $ 16,635,534 $ 16,440,813 $ 17,940,240
Net OPEB asset as a percentage of covered-employee payroll 1.84% -0.13% -28.60% -31.90%
(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: In 2020,the ACA Excise Tax removed from liabilities.
116
CITY OF RANCHO CUCAMONGA
SCHEDULE OF CONTRIBUTIONS-OPEB
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2018 2019 2020 2021
Actuarially Determined Contribution $ 998,969 $ 469,195 $ 454,699 $ 32,589
Contribution in Relation to the Actuarially Determined Contributions (998,969) (469,195) (454,699) (32,589)
Contribution Deficiency(Excess) $ $ $ $
Covered-employee payroll $16,635,534 $16,440,813 $17,940,240 $18,018,339
Contributions as a percentage of covered-employee payroll 6.01% 2.85% 2.53% 0.18%
(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 30,2019
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
Discount Rate 5.50%
General Inflation 2.75%
Payroll Growth 3.00%per annum,in aggregate
Mortality,Disability,Termination, CaIPERS 1997-2015 Experience Study;
Retirement Mortality Improvement-Mortality projected fully generational with Scale MP-2019
Medical Trend Non-Medicare-7%for 2022,decreasing to an ultimate rate of 4.0%in 2076;
Medicare-6.1%for 2022,decreasing to an ultimate rate of 4.0%in 2076
Other Assumptions PEMHCA minimum increases of 4.25%annually;Healthcare participation for future retirees at 100%for
Tier 1 and 75%if Tier 2 for currently covered,and 50%for others
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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 Districts 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.
119
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 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.
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.
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.
120
CITY OF RANCHO CUCAMONGA
Non-Major Governmental Funds
Special Revenue Funds (Continued)
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.
Public Art Trust Fund — Established to account for the receipts of public art in-lieu fees restricted for the
selection, purchase, placement, and maintenance of art installed by the City or on City property.
State Grants Fund — Established to account for grant fund received from the State of California and the
allowable expenditures for those programs. The State grant programs reported in this special revenue
fund are nonrecurring.
Assessment District 91-2 Fund - Established to account for Drainage Area No. 91-2 assessments
revenues which are restricted for maintenance and servicing of a Day Canyon Drainage Basin.
Assessment District 85-PD Fund - Established to account for Park and Recreation Improvement District
No. PD-85 assessments revenues which are restricted for the maintenance and operations of Heritage
and Red Hill Community Parks.
Community Facilities District 2000-03 Park Maintenance Fund - Established to account for Community
Facilities District No. 2000-03 special tax revenues which are restricted for the park maintenance and
operations of the District.
CFD 2017-01 No. Etiwanda - Established to account for Community Facilities District No. 2017-01 special
tax revenues which are restricted for the maintenance and operations of the District.
CFD 2018-01 Empire Lakes- Established to account for Community Facilities District No. 2018-01 special
tax revenues which are restricted for the maintenance and operations of the District.
Capital Projects Fund
Capital Projects Fund - Established to account for major capital improvement projects not accounted for
in other funds.
121
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Special Revenue Funds
Landscape
Maintenance
Gas Tax Recreation Beautification Districts
Assets:
Cash and investments $ 16,421,361 $ 8,266 $ 595,599 $ 22,644,132
Receivables:
Accounts 612,344 - - 43,927
Taxes - - - 96,458
Accrued interest 41,366 - 1,653 57,123
Other loans - - - -
Grants - -
Prepaid costs - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets $ 17,075,071 $ 8,266 $ 597,252 $ 22,841,640
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 116,772 $ 13,545 $ $ 939,730
Accrued liabilities 69,696 - - 119,062
Deposits payable - -
Due to other governments -
Due to other funds - - -
Total Liabilities 186,468 13,545 1,058,792
Deferred Inflows of Resources:
Unavailable revenues - - - -
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Prepaid costs - -
Restricted for:
Community development projects - - -
Public safety-police - - -
Parks and recreation - -
Engineering and public works 16,888,603 - 597,252 -
Capital improvement projects - - - -
Underground utilities - - - -
Landscape maintenance - - - 21,782,848
Library services - - - -
Unassigned - (5,279) - -
Total Fund Balances 16,888,603 (5,279) 597,252 21,782,848
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 17,075,071 $ 8,266 $ 597,252 $ 22,841,640
122
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021 (CONTINUED)
Special Revenue Funds
Community
Pedestrian Development Assessment
Grant Block Grant Administration SB 140
Assets:
Cash and investments $ $ $ 846,654 $ 36,536
Receivables:
Accounts - - -
Taxes - -
Accrued interest - 1,516
Other loans 1,218,204 -
Grants 1,110,380
Prepaid costs 1,475
Restricted assets:
Cash and investments with fiscal agents - - -
Total Assets $ - $ 2,330,059 $ 848,170 $ 36,536
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 975 $ 54,902 $ 3,174 $
Accrued liabilities - 11,712 11,554
Deposits payable - - -
Due to other governments - 429,027
Due to other funds 8,262 267,039 -
Total Liabilities 9,237 762,680 14,728
Deferred Inflows of Resources:
Unavailable revenues - 204,777 -
Total Deferred Inflows of Resources - 204,777 -
Fund Balances:
Nonspendable:
Prepaid costs - 1,475 -
Restricted for:
Community development projects - 1,361,127 833,442
Public safety-police - - -
Parks and recreation - -
Engineering and public works - 36,536
Capital improvement projects - -
Underground utilities -
Landscape maintenance -
Library services -
Unassigned (9,237) - - -
Total Fund Balances (9,237) 1,362,602 833,442 36,536
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ - $ 2,330,059 $ 848,170 $ 36,536
123
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Special Revenue Funds
Masi
Air Quality Commerce Library
Improvement Center Measure I Services
Assets:
Cash and investments $ 517,593 $ 10,939 $ 3,791,360 $ 10,590,586
Receivables:
Accounts 88,277 - 111,865 246,882
Taxes - - 1,144,716 43,227
Accrued interest 1,524 24 9,207 23,544
Other loans - - - -
Grants -
Prepaid costs - -
Restricted assets:
Cash and investments with fiscal agents - 301,278 - -
Total Assets $ 607,394 $ 312,241 $ 5,057,148 $ 10,904,239
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 27,786 $ $ 249,928 $ 255,220
Accrued liabilities - 22,390 122,407
Deposits payable - - 15
Due to other governments - -
Due to other funds - - - -
Total Liabilities 27,786 272,318 377,642
Deferred Inflows of Resources:
Unavailable revenues - 397,262 -
Total Deferred Inflows of Resources - 397,262
Fund Balances:
Nonspendable:
Prepaid costs - - -
Restricted for:
Community development projects 579,608
Public safety-police - -
Parks and recreation - - -
Engineering and public works - 4,387,568 -
Capital improvement projects - 312,241 - 1,061,446
Underground utilities - - -
Landscape maintenance - - -
Library services - - 9,465,151
Unassigned - - -
Total Fund Balances 579,608 312,241 4,387,568 10,526,597
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 607,394 $ 312,241 $ 5,057,148 $ 10,904,239
124
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021 (CONTINUED)
Special Revenue Funds
AB 2928
Library Traffic
Public Safety Used Oil Services Congestion
Grants Recycling Grants Relief
Assets:
Cash and investments $ 1,151,669 $ 34,600 $ 380,016 $ 292,690
Receivables:
Accounts - - - -
Taxes - - - -
Accrued interest 284 97 713
Other loans - - - -
Grants 53,505 -
Prepaid costs - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets $ 1,205,458 $ 34,697 $ 380,729 $ 292,690
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 111,678 $ 13,883 $ 1,143 $ -
Accrued liabilities - 1,832 - -
Deposits payable - -
Due to other governments -
Due to other funds - - - -
Total Liabilities 111,678 15,715 1,143
Deferred Inflows of Resources:
Unavailable revenues - - -
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Prepaid costs
Restricted for:
Community development projects -
Public safety-police 1,093,780
Parks and recreation - - -
Engineering and public works 18,982 292,690
Capital improvement projects - -
Underground utilities
Landscape maintenance -
Library services 379,586
Unassigned - - - -
Total Fund Balances 1,093,780 18,982 379,586 292,690
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 1,205,458 $ 34,697 $ 380,729 $ 292,690
125
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Special Revenue Funds
Energy
Litter Efficiency and
Reduction Conservation SAFETEA-LU Underground
Grant Block Grant Grant Utilities
Assets:
Cash and investments $ 63,636 $ $ 483,705 $ 11,702,164
Receivables:
Accounts - - -
Taxes - - -
Accrued interest - 640 30,920
Other loans - 121,420 - -
Grants - -
Prepaid costs 900
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets $ 64,536 $ 121,420 $ 484,345 $ 11,733,084
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 11,304 $ - $ $ -
Accrued liabilities - 318
Deposits payable -
Due to other governments 121,420
Due to other funds - 96 -
Total Liabilities 11,304 121,516 318
Deferred Inflows of Resources:
Unavailable revenues - - -
Total Deferred Inflows of Resources -
Fund Balances:
Nonspendable:
Prepaid costs 900
Restricted for:
Community development projects 52,332
Public safety-police - 484,345
Parks and recreation - - -
Engineering and public works - -
Capital improvement projects - -
Underground utilities - 11,732,766
Landscape maintenance - -
Library services - -
Unassigned - (96) - -
Total Fund Balances 53,232 (96) 484,345 11,732,766
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 64,536 $ 121,420 $ 484,345 $ 11,733,084
126
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021 (CONTINUED)
Special Revenue Funds
Citywide Public Integrated
Infrastructure Proposition Resource Waste
Improvement 1B Grants Management
Assets:
Cash and investments $ 25,791,584 $ 280,393 $ $ 4,038,188
Receivables:
Accounts 189,663 19,917 1,636
Taxes - - 406,850
Accrued interest 70,333 705 10,374
Other loans - - -
Grants
Prepaid costs
Restricted assets:
Cash and investments with fiscal agents - - -
Total Assets $ 26,051,580 $ 301,015 $ $ 4,457,048
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 16,845 $ - $ - $ 2,030
Accrued liabilities 58 45,315
Deposits payable - -
Due to other governments
Due to other funds - -
Total Liabilities 16,903 47,345
Deferred Inflows of Resources:
Unavailable revenues - -
Total Deferred Inflows of Resources -
Fund Balances:
Nonspendable:
Prepaid costs -
Restricted for:
Community development projects -
Public safety-police -
Parks and recreation -
Engineering and public works - 301,015 4,409,703
Capital improvement projects 26,034,677 - -
Underground utilities - -
Landscape maintenance -
Library services -
Unassigned - - -
Total Fund Balances 26,034,677 301,015 - 4,409,703
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 26,051,580 $ 301,015 $ $ 4,457,048
127
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Special Revenue Funds
AD 91-2
Public Art State Grants Redemption-
SB1 -TCEP Trust Fund Fund Day Canyon
Assets:
Cash and investments $ - $ 581,862 $ $ 78,656
Receivables:
Accounts 8,073,419 - - -
Taxes - - - 667
Accrued interest - 1,224 - 178
Other loans - - -
Grants 419,922 223,240
Prepaid costs - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets $ 8,493,341 $ 583,086 $ 223,240 $ 79,501
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 1,036,794 $ 291 $ $ -
Accrued liabilities - - 628
Deposits payable - -
Due to other governments - -
Due to other funds 7,456,547 - 223,240 -
Total Liabilities 8,493,341 291 223,240 628
Deferred Inflows of Resources:
Unavailable revenues - - - -
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Prepaid costs -
Restricted for:
Community development projects -
Public safety-police - -
Parks and recreation - 582,795
Engineering and public works - -
Capital improvement projects -
Underground utilities - -
Landscape maintenance - 78,873
Library services - -
Unassigned - - -
Total Fund Balances - 582,795 - 78,873
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 8,493,341 $ 583,086 $ 223,240 $ 79,501
128
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021 (CONTINUED)
Special Revenue Funds
CFD 2000-03
PD 85 Park CFD 2017-01 CFD 2018-01
Maintenance Maintenance No.Etiwanda Empire Lakes
Assets:
Cash and investments $ 3,247,061 $ 524,900 $ 1,796 $ 77,193
Receivables:
Accounts 7,010 - - -
Taxes 12,031 1,471 507
Accrued interest 8,112 1,135 211
Other loans - - -
Grants - -
Prepaid costs - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets $ 3,274,214 $ 527,506 $ 1,796 $ 77,911
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 77,263 $ 10,312 $ $ -
Accrued liabilities 5,563 8,467 -
Deposits payable - - -
Due to other governments -
Due to other funds - - -
Total Liabilities 82,826 18,779
Deferred Inflows of Resources:
Unavailable revenues - -
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Prepaid costs -
Restricted for:
Community development projects -
Public safety-police -
Parks and recreation -
Engineering and public works -
Capital improvement projects -
Underground utilities - - -
Landscape maintenance 3,191,388 508,727 1,796 77,911
Library services - - - -
Unassigned - - - -
Total Fund Balances 3,191,388 508,727 1,796 77,911
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 3,274,214 $ 527,506 $ 1,796 $ 77,911
129
CITY OF RANCHO CUCAMONGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2021
Capital
Projects
Fund
Total
Capital Nonmajor
Projects Governmental
Fund Funds
Assets:
Cash and investments $ 9,565,225 $ 113,758,364
Receivables:
Accounts - 9,394,940
Taxes - 1,705,927
Accrued interest 21,744 282,627
Other loans - 1,339,624
Grants 1,807,047
Prepaid costs - 2,375
Restricted assets:
Cash and investments with fiscal agents 412,721 713,999
Total Assets $ 9,999,690 $ 129,004,903
Liabilities,Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 2,577,424 $ 5,520,999
Accrued liabilities - 419,002
Deposits payable 15
Due to other governments 550,447
Due to other funds - 7,955,184
Total Liabilities 2,577,424 14,445,647
Deferred Inflows of Resources:
Unavailable revenues - 602,039
Total Deferred Inflows of Resources 602,039
Fund Balances:
Nonspendable:
Prepaid costs 2,375
Restricted for:
Community development projects 2,826,509
Public safety-police 1,578,125
Parks and recreation 582,795
Engineering and public works - 26,932,349
Capital improvement projects 7,422,266 34,830,630
Underground utilities - 11,732,766
Landscape maintenance 25,641,543
Library services 9,844,737
Unassigned (14,612)
Total Fund Balances 7,422,266 113,957,217
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 9,999,690 $ 129,004,903
130
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131
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Special Revenue Funds
Landscape
Maintenance
Gas Tax Recreation Beautification Districts
Revenues:
Taxes $ - $ $ $ 11,683,389
Licenses and permits 55,348
Intergovernmental 7,094,688 -
Charges for services - 16,624
Use of money and property (6,106) (168) (976) 91,048
Contributions - - - -
Developer participation - -
Miscellaneous 17,075 - - 10,000
Total Revenues 7,105,657 (168) (976) 11,856,409
Expenditures:
Current:
General government - - - -
Public safety-police -
Public safety-fire protection - - -
Community development - - 11,371,589
Community services - - - -
Engineering and public works 2,110,315 - 790 -
Capital outlay 3,465,772 - 30,675 410,649
Total Expenditures 5,576,087 - 31,465 11,782,238
Excess(Deficiency)of Revenues
Over(Under)Expenditures 1,529,570 (168) (32,441) 74,171
Other Financing Sources(Uses):
Transfers in 1,050 - 383,098
Transfers out - (30,992)
Total Other Financing Sources
(Uses) 1,050 - 352,106
Net Change in Fund Balances 1,530,620 (168) (32,441) 426,277
Fund Balances, Beginning of Year 15,357,983 (5,111) 629,693 21,356,571
Restatements - - -
Fund Balances, Beginning of Year,as Restated 15,357,983 (5,111) 629,693 21,356,571
Fund Balances, End of Year $ 16,888,603 $ (5,279) $ 597,252 $ 21,782,848
132
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
Special Revenue Funds
Community
Pedestrian Development Assessment
Grant Block Grant Administration SB 140
Revenues:
Taxes $ $ $ $
Licenses and permits - -
Intergovernmental 43,575 1,474,651 -
Charges for services - - - -
Use of money and property - (601) (2,934) (442)
Contributions - - - -
Developer participation - - -
Miscellaneous - 180,160 1,009,520 -
Total Revenues 43,575 1,654,210 1,006,586 (442)
Expenditures:
Current:
General government - - 805,994 -
Public safety-police - -
Public safety-fire protection - - -
Community development - 1,528,060 -
Community services - - -
Engineering and public works -
Capital outlay 51,073 - -
Total Expenditures 51,073 1,528,060 805,994 -
Excess(Deficiency)of Revenues
Over(Under)Expenditures (7,498) 126,150 200,592 (442)
Other Financing Sources(Uses):
Transfers in - 9,800 - -
Transfers out - - -
Total Other Financing Sources
(Uses) 9,800 - -
Net Change in Fund Balances (7,498) 135,950 200,592 (442)
Fund Balances, Beginning of Year (1,739) 1,226,652 632,850 36,978
Restatements - - - -
Fund Balances, Beginning of Year,as Restated (1,739) 1,226,652 632,850 36,978
Fund Balances,End of Year $ (9,237) $ 1,362,602 $ 833,442 $ 36,536
133
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Special Revenue Funds
Masi
Air Quality Commerce Library
Improvement Center Measure I Services
Revenues:
Taxes $ $ $ $ 5,214,239
Licenses and permits - -
Intergovernmental 564,769 - 3,884,722 26,006
Charges for services - - - 13,065
Use of money and property (2,308) 29 (8,394) (14,483)
Contributions - 231,125
Developer participation - - -
Miscellaneous - - 111,865 64,205
Total Revenues 562,461 29 3,988,193 5,534,157
Expenditures:
Current:
General government 15,539 180 - -
Public safety-police - -
Public safety-fire protection -
Community development - -
Community services - - 3,581,652
Engineering and public works - - 1,532,182 -
Capital outlay 760,944 - 2,111,947 576,232
Total Expenditures 776,483 180 3,644,129 4,157,884
Excess(Deficiency)of Revenues
Over(Under)Expenditures (214,022) (151) 344,064 1,376,273
Other Financing Sources(Uses):
Transfers in - - 206,425
Transfers out -
Total Other Financing Sources
(Uses) - - 206,425
Net Change in Fund Balances (214,022) (151) 344,064 1,582,698
Fund Balances, Beginning of Year 793,630 312,392 4,043,504 8,943,899
Restatements - - - -
Fund Balances, Beginning of Year,as Restated 793,630 312,392 4,043,504 8,943,899
Fund Balances,End of Year $ 579,608 $ 312,241 $ 4,387,568 $ 10,526,597
134
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
Special Revenue Funds
AB 2928
Library Traffic
Public Safety Used Oil Services Congestion
Grants Recycling Grants Relief
Revenues:
Taxes $ $ $ $
Licenses and permits -
Intergovernmental 507,847 19,133 52,294 -
Charges for services - - -
Use of money and property (12,253) (90) (1,980) (3,689)
Contributions -
Developer participation - -
Miscellaneous 23,834 - -
Total Revenues 519,428 19,043 50,314 (3,689)
Expenditures:
Current:
General government - - -
Public safety-police 267,061 -
Public safety-fire protection 53,505 -
Community development - 49,577 -
Community services - 43,944
Engineering and public works - - -
Capital outlay 20,558 - -
Total Expenditures 341,124 49,577 43,944
Excess(Deficiency)of Revenues
Over(Under)Expenditures 178,304 (30,534) 6,370 (3,689)
Other Financing Sources(Uses):
Transfers in - - -
Transfers out - (37,040)
Total Other Financing Sources
(Uses) - (37,040)
Net Change in Fund Balances 178,304 (30,534) (30,670) (3,689)
Fund Balances, Beginning of Year 915,476 49,516 410,256 296,379
Restatements - - - -
Fund Balances, Beginning of Year,as Restated 915,476 49,516 410,256 296,379
Fund Balances,End of Year $ 1,093,780 $ 18,982 $ 379,586 $ 292,690
135
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Special Revenue Funds
Energy
Litter Efficiency and
Reduction Conservation SAFETEA-LU Underground
Grant Block Grant Grant Utilities
Revenues:
Taxes $ $ $ $
Licenses and permits -
Intergovernmental 43,239 - 299,139 -
Charges for services - - - 146,397
Use of money and property (825) - (452) (6,469)
Contributions - - -
Developer participation - -
Miscellaneous - - - 251,674
Total Revenues 42,414 - 298,687 391,602
Expenditures:
Current:
General government - - - -
Public safety-police -
Public safety-fire protection -
Community development -
Community services - - -
Engineering and public works 55,644 - 13,499
Capital outlay - - 2,793
Total Expenditures 55,644 - - 16,292
Excess(Deficiency)of Revenues
Over(Under)Expenditures (13,230) - 298,687 375,310
Other Financing Sources(Uses):
Transfers in - - -
Transfers out -
Total Other Financing Sources
(Uses) - -
Net Change in Fund Balances (13,230) - 298,687 375,310
Fund Balances, Beginning of Year 66,462 (96) 185,658 11,357,456
Restatements - - - -
Fund Balances, Beginning of Year,as Restated 66,462 (96) 185,658 11,357,456
Fund Balances,End of Year $ 53,232 $ (96) $ 484,345 $ 11,732,766
136
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
Special Revenue Funds
Citywide Public Integrated
Infrastructure Proposition Resource Waste
Improvement 1B Grants Management
Revenues:
Taxes $ $ $ $ 1,718,179
Licenses and permits - 50,200
Intergovernmental 141,520 39,834 -
Charges for services - -
Use of money and property (2,060) (326) (52) (2,490)
Contributions - -
Developer participation - - -
Miscellaneous 23,348 - - 16,145
Total Revenues 162,808 39,508 (52) 1,782,034
Expenditures:
Current:
General government - - 10,951 -
Public safety-police - -
Public safety-fire protection -
Community development 200
Community services - - -
Engineering and public works 31,261 - 1,275,755
Capital outlay 313,437 - -
Total Expenditures 344,698 200 10,951 1,275,755
Excess(Deficiency)of Revenues
Over(Under)Expenditures (181,890) 39,308 (11,003) 506,279
Other Financing Sources(Uses):
Transfers in - 16,563 -
Transfers out (17,000) - - (218,390)
Total Other Financing Sources
(Uses) (17,000) - 16,563 (218,390)
Net Change in Fund Balances (198,890) 39,308 5,560 287,889
Fund Balances, Beginning of Year 26,233,567 261,707 (5,560) 4,121,814
Restatements - - -
Fund Balances, Beginning of Year,as Restated 26,233,567 261,707 (5,560) 4,121,814
Fund Balances,End of Year $ 26,034,677 $ 301,015 $ - $ 4,409,703
137
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Special Revenue Funds
AD 91-2
Public Art State Grants Redemption-
SB1 -TCEP Trust Fund Fund Day Canyon
Revenues:
Taxes $ - $ $ $ 33,822
Licenses and permits - - -
Intergovernmental 4,627,947 223,240
Charges for services - - -
Use of money and property - 3,009 - (91)
Contributions - - - -
Developer participation - 443,950 -
Miscellaneous - - - -
Total Revenues 4,627,947 446,959 223,240 33,731
Expenditures:
Current:
General government 650 - - 21,384
Public safety-police - - -
Public safety-fire protection - - -
Community development - 2,843 -
Community services - - -
Engineering and public works - -
Capital outlay 4,627,297 - 223,240 -
Total Expenditures 4,627,947 2,843 223,240 21,384
Excess(Deficiency)of Revenues
Over(Under)Expenditures - 444,116 - 12,347
Other Financing Sources(Uses):
Transfers in - - -
Transfers out -
Total Other Financing Sources
(Uses) - - -
Net Change in Fund Balances - 444,116 - 12,347
Fund Balances, Beginning of Year - 138,679 - -
Restatements - - - 66,526
Fund Balances, Beginning of Year,as Restated - 138,679 - 66,526
Fund Balances,End of Year $ - $ 582,795 $ - $ 78,873
138
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
Special Revenue Funds
CFD 2000-03
PD 85 Park CFD 2017-01 CFD 2018-01
Maintenance Maintenance No.Etiwanda Empire Lakes
Revenues:
Taxes $ 1,163,371 $ 531,929 $ 3,016 $ 112,093
Licenses and permits - - - -
Intergovernmental - -
Charges for services 14,947 520 Use of money and property 128,455 (1,524) (1,173)
Contributions - -
Developer participation - -
Miscellaneous - - - 15,185
Total Revenues 1,306,773 530,925 3,016 126,105
Expenditures:
Current:
General government - 454,276 1,220 56,978
Public safety-police - - -
Public safety-fire protection -
Community development -
Community services - -
Engineering and public works 920,910 - -
Capital outlay 113,204 - - 211,045
Total Expenditures 1,034,114 454,276 1,220 268,023
Excess(Deficiency)of Revenues
Over(Under)Expenditures 272,659 76,649 1,796 (141,918)
Other Financing Sources(Uses):
Transfers in 58,381 191 -
Transfers out - - (8,270)
Total Other Financing Sources
(Uses) 58,381 191 - (8,270)
Net Change in Fund Balances 331,040 76,840 1,796 (150,188)
Fund Balances, Beginning of Year - - - -
Restatements 2,860,348 431,887 228,099
Fund Balances, Beginning of Year,as Restated 2,860,348 431,887 - 228,099
Fund Balances,End of Year $ 3,191,388 $ 508,727 $ 1,796 $ 77,911
139
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2021
Capital
Projects Fund
Total Nonmajor
Capital Governmental
Projects Fund Funds
Revenues:
Taxes $ $ 20,460,038
Licenses and permits 105,548
Intergovernmental 19,042,604
Charges for services 191,553
Use of money and property (8,452) 144,203
Contributions 231,125
Developer participation 443,950
Miscellaneous 1,723,011
Total Revenues (8,452) 42,342,032
Expenditures:
Current:
General government 3,130 1,370,302
Public safety-police - 267,061
Public safety-fire protection - 53,505
Community development 2,630 12,954,899
Community services - 3,625,596
Engineering and public works 5,940,356
Capital outlay - 12,918,866
Total Expenditures 5,760 37,130,585
Excess(Deficiency)of Revenues
Over(Under)Expenditures (14,212) 5,211,447
Other Financing Sources(Uses):
Transfers in 675,508
Transfers out (311,692)
Total Other Financing Sources
(Uses) 363,816
Net Change in Fund Balances (14,212) 5,575,263
Fund Balances, Beginning of Year 2,827,208 100,185,824
Restatements 4,609,270 8,196,130
Fund Balances, Beginning of Year,as Restated 7,436,478 108,381,954
Fund Balances,End of Year $ 7,422,266 $ 113,957,217
140
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
GAS TAX
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 15,357,983 $ 15,357,983 $ 15,357,983 $ -
Resources(Inflows):
Intergovernmental 7,292,240 7,348,360 7,094,688 (253,672)
Use of money and property 229,840 172,870 (6,106) (178,976)
Miscellaneous - - 17,075 17,075
Transfers in - 1,050 1,050 -
Amounts Available for Appropriations 22,880,063 22,880,263 22,464,690 (415,573)
Charges to Appropriation(Outflow):
Engineering and public works 2,411,110 2,356,440 2,139,408 217,032
Capital outlay 3,855,260 4,471,830 3,889,979 581,851
Total Charges to Appropriations 6,266,370 6,828,270 6,029,387 798,883
Budgetary Fund Balance,June 30(Budgetary Basis) $16,613,693 $16,051,993 16,435,303 $ 383,310
Encumbrances 453,300
Budgetary Fund Balance,June 30(GAAP Basis) $16,888,603
141
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
RECREATION
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ (5,111) $ (5,111) $ (5,111) $ -
Resources(Inflows):
Use of money and property 50 (168) (168)
Amounts Available for Appropriations (5,061) (5,111) (5,279) (168)
Budgetary Fund Balance,June 30(Budgetary Basis) $ (5,061) $ (5,111) (5,279) $ (168)
Encumbrances
Budgetary Fund Balance,June 30(GAAP Basis) $ (5,279)
142
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
BEAUTIFICATION
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 629,693 $ 629,693 $ 629,693 $
Resources(Inflows):
Use of money and property 14,750 7,060 (976) (8,036)
Amounts Available for Appropriations 644,443 636,753 628,717 (8,036)
Charges to Appropriation(Outflow):
Engineering and public works 450 790 790 -
Capital outlay - 30,780 30,675 105
Total Charges to Appropriations 450 31,570 31,465 105
Budgetary Fund Balance,June 30(Budgetary Basis) $ 643,993 $ 605,183 597,252 $ (7,931)
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 597,252
143
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
LANDSCAPE MAINTENANCE DISTRICTS
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 21,356,571 $ 21,356,571 $21,356,571 $ -
Resources(Inflows):
Taxes 11,649,230 11,656,330 11,683,389 27,059
Licenses and permits 220,000 60,000 55,348 (4,652)
Charges for services 30,230 25,470 16,624 (8,846)
Use of money and property 456,630 342,370 91,048 (251,322)
Miscellaneous 3,940 10,440 10,000 (440)
Transfers in 393,110 419,620 383,098 (36,522)
Amounts Available for Appropriations 34,109,711 33,870,801 33,596,078 (274,723)
Charges to Appropriation(Outflow):
Community development 12,272,220 12,309,730 11,574,177 735,553
Capital outlay 1,070,000 1,665,790 1,587,570 78,220
Transfers out - 33,900 30,992 2,908
Total Charges to Appropriations 13,342,220 14,009,420 13,192,739 816,681
Budgetary Fund Balance,June 30(Budgetary Basis) $ 20,767,491 $ 19,861,381 20,403,339 $ 541,958
Encumbrances 1,379,509
Budgetary Fund Balance,June 30(GAAP Basis) $21,782,848
144
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
PEDESTRIAN GRANT
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ (1,739) $ (1,739) $ (1,739) $
Resources(Inflows):
Intergovernmental 401,200 86,420 43,575 (42,845)
Amounts Available for Appropriations 399,461 84,681 41,836 (42,845)
Charges to Appropriation(Outflow):
Capital outlay 401,200 86,420 51,073 35,347
Total Charges to Appropriations 401,200 86,420 51,073 35,347
Budgetary Fund Balance,June 30(Budgetary Basis) $ (1,739) $ (1,739) (9,237) $ (7,498)
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ (9,237)
145
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 1,226,652 $ 1,226,652 $ 1,226,652 $ -
Resources(Inflows):
Intergovernmental 1,290,010 2,781,870 1,474,651 (1,307,219)
Use of money and property - - (601) (601)
Miscellaneous 150,000 150,000 180,160 30,160
Transfers in - 9,800 9,800 -
Amounts Available for Appropriations 2,666,662 4,168,322 2,890,662 (1,277,660)
Charges to Appropriation(Outflow):
Community development 1,266,530 3,316,755 2,052,158 1,264,597
Total Charges to Appropriations 1,266,530 3,316,755 2,052,158 1,264,597
Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,400,132 $ 851,567 838,504 $ (13,063)
Encumbrances 524,098
Budgetary Fund Balance,June 30(GAAP Basis) $ 1,362,602
146
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
ASSESSMENT ADMINISTRATION
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 632,850 $ 632,850 $ 632,850 $ -
Resources(Inflows):
Use of money and property 9,920 8,220 (2,934) (11,154)
Miscellaneous 1,009,520 1,009,520 1,009,520 -
Amounts Available for Appropriations 1,652,290 1,650,590 1,639,436 (11,154)
Charges to Appropriation(Outflow):
General government 1,014,630 1,335,700 1,094,867 240,833
Total Charges to Appropriations 1,014,630 1,335,700 1,094,867 240,833
Budgetary Fund Balance,June 30(Budgetary Basis) $ 637,660 $ 314,890 544,569 $ 229,679
Encumbrances 288,873
Budgetary Fund Balance,June 30(GAAP Basis) $ 833,442
147
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 793,630 $ 793,630 $ 793,630 $ -
Resources(Inflows):
Intergovernmental 268,130 565,190 564,769 (421)
Use of money and property 15,790 7,570 (2,308) (9,878)
Amounts Available for Appropriations 1,077,550 1,366,390 1,356,091 (10,299)
Charges to Appropriation(Outflow):
General government 20,400 17,770 17,119 651
Capital outlay 330,000 995,750 760,944 234,806
Total Charges to Appropriations 350,400 1,013,520 778,063 235,457
Budgetary Fund Balance,June 30(Budgetary Basis) $ 727,150 $ 352,870 578,028 $ 225,158
Encumbrances 1,580
Budgetary Fund Balance,June 30(GAAP Basis) $ 579,608
148
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
MASI COMMERCE CENTER
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 312,392 $ 312,392 $ 312,392 $ -
Resources(Inflows):
Use of money and property 3,260 180 29 (151)
Amounts Available for Appropriations 315,652 312,572 312,421 (151)
Charges to Appropriation(Outflow):
General government 180 180 180 -
Total Charges to Appropriations 180 180 180 -
Budgetary Fund Balance,June 30(Budgetary Basis) $ 315,472 $ 312,392 312,241 $ (151)
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 312,241
149
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
MEASUREI
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $4,043,504 $ 4,043,504 $4,043,504 $ -
Resources(Inflows):
Intergovernmental 2,617,900 3,470,230 3,884,722 414,492
Use of money and property 48,180 38,340 (8,394) (46,734)
Miscellaneous - 120,000 111,865 (8,135)
Amounts Available for Appropriations 6,709,584 7,672,074 8,031,697 359,623
Charges to Appropriation(Outflow):
Engineering and public works 1,612,190 1,623,800 1,608,250 15,550
Capital outlay 1,290,000 2,814,510 2,214,869 599,641
Total Charges to Appropriations 2,902,190 4,438,310 3,823,119 615,191
Budgetary Fund Balance,June 30(Budgetary Basis) $3,807,394 $ 3,233,764 4,208,578 $ 974,814
Encumbrances 178,990
Budgetary Fund Balance,June 30(GAAP Basis) $4,387,568
150
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
LIBRARY SERVICES
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $8,943,899 $ 8,943,899 $ 8,943,899 $ -
Resources(Inflows):
Taxes 4,914,770 5,002,460 5,214,239 211,779
Intergovernmental - 26,010 26,006 (4)
Charges for services 185,500 17,820 13,065 (4,755)
Use of money and property 131,860 93,200 (14,483) (107,683)
Contributions 705,070 235,000 231,125 (3,875)
Miscellaneous 71,920 71,670 64,205 (7,465)
Transfers in - 258,300 206,425 (51,875)
Amounts Available for Appropriations 14,953,019 14,648,359 14,684,481 36,122
Charges to Appropriation(Outflow):
Community services 5,245,460 3,920,320 3,618,305 302,015
Capital outlay 930,000 990,590 931,237 59,353
Total Charges to Appropriations 6,175,460 4,910,910 4,549,542 361,368
Budgetary Fund Balance,June 30(Budgetary Basis) $8,777,559 $ 9,737,449 10,134,939 $ 397,490
Encumbrances 391,658
Budgetary Fund Balance,June 30(GAAP Basis) $10,526,597
151
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
PUBLIC SAFETY GRANTS
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 915,476 $ 915,476 $ 915,476 $
Resources(Inflows):
Intergovernmental 365,020 583,840 507,847 (75,993)
Use of money and property 1,080 1,250 (12,253) (13,503)
Miscellaneous - - 23,834 23,834
Amounts Available for Appropriations 1,281,576 1,500,566 1,434,904 (65,662)
Charges to Appropriation(Outflow):
Public safety-police 346,530 367,260 267,061 100,199
Public safety-fire protection 26,840 53,860 53,505 355
Capital outlay 66,140 55,920 20,558 35,362
Total Charges to Appropriations 439,510 477,040 341,124 135,916
Budgetary Fund Balance,June 30(Budgetary Basis) $ 842,066 $ 1,023,526 1,093,780 $ 70,254
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 1,093,780
152
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
USED OIL RECYCLING
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 49,516 $ 49,516 $ 49,516 $ -
Resources(Inflows):
Intergovernmental 48,830 48,200 19,133 (29,067)
Use of money and property 560 440 (90) (530)
Amounts Available for Appropriations 98,906 98,156 68,559 (29,597)
Charges to Appropriation(Outflow):
Community development 49,810 50,200 49,577 623
Total Charges to Appropriations 49,810 50,200 49,577 623
Budgetary Fund Balance,June 30(Budgetary Basis) $ 49,096 $ 47,956 18,982 $ (28,974)
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 18,982
153
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
LIBRARY SERVICES GRANTS
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 410,256 $ 410,256 $ 410,256 $ -
Resources(Inflows):
Intergovernmental 20,000 52,300 52,294 (6)
Use of money and property 5,080 3,020 (1,980) (5,000)
Amounts Available for Appropriations 435,336 465,576 460,570 (5,006)
Charges to Appropriation(Outflow):
Community services 26,450 43,950 43,944 6
Transfers out - 37,050 37,040 10
Total Charges to Appropriations 26,450 81,000 80,984 16
Budgetary Fund Balance,June 30(Budgetary Basis) $ 408,886 $ 384,576 379,586 $ (4,990)
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 379,586
154
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
LITTER REDUCTION GRANT
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 66,462 $ 66,462 $ 66,462 $ -
Resources(Inflows):
Intergovernmental 59,860 44,100 43,239 (861)
Use of money and property - - (825) (825)
Amounts Available for Appropriations 126,322 110,562 108,876 (1,686)
Charges to Appropriation(Outflow):
Engineering and public works 59,620 70,620 55,644 14,976
Total Charges to Appropriations 59,620 70,620 55,644 14,976
Budgetary Fund Balance,June 30(Budgetary Basis) $ 66,702 $ 39,942 53,232 $ 13,290
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 53,232
155
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
UNDERGROUND UTILITIES
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $11,357,456 $11,357,456 $11,357,456 $ -
Resources(Inflows):
Charges for services 90,000 100,000 146,397 46,397
Use of money and property 219,590 131,020 (6,469) (137,489)
Miscellaneous - - 251,674 251,674
Amounts Available for Appropriations 11,667,046 11,588,476 11,749,058 160,582
Charges to Appropriation(Outflow):
Engineering and public works 4,060 15,430 15,427 3
Capital outlay 40,000 39,480 15,843 23,637
Total Charges to Appropriations 44,060 54,910 31,270 23,640
Budgetary Fund Balance,June 30(Budgetary Basis) $11,6229986 $11,533,566 11,7179788 $ 1849222
Encumbrances 14,978
Budgetary Fund Balance,June 30(GAAP Basis) $11,732,766
156
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
CITYWIDE INFRASTRUCTURE IMPROVEMENT
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $26,233,567 $26,233,567 $26,233,567 $
Resources(Inflows):
Intergovernmental 900,000 900,000 141,520 (758,480)
Use of money and property 458,200 298,890 (2,060) (300,950)
Developer participation 2,000 2,000 - (2,000)
Miscellaneous - 54,440 23,348 (31,092)
Amounts Available for Appropriations 27,593,767 27,488,897 26,396,375 (1,092,522)
Charges to Appropriation(Outflow):
Engineering and public works 32,850 85,400 31,261 54,139
Capital outlay 266,890 438,770 313,437 125,333
Transfers out - 17,000 17,000 -
Total Charges to Appropriations 299,740 541,170 361,698 179,472
Budgetary Fund Balance,June 30(Budgetary Basis) $27,294,027 $26,947,727 26,034,677 $ (913,050)
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $26,034,677
157
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
PROPOSITION 1 B
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 261,707 $ 261,707 $ 261,707 $ -
Resources(Inflows):
Intergovernmental - - 39,834 39,834
Use of money and property 5,100 3,020 (326) (3,346)
Amounts Available for Appropriations 266,807 264,727 301,215 36,488
Charges to Appropriation(Outflow):
Community development 100 200 200 -
Total Charges to Appropriations 100 200 200 -
Budgetary Fund Balance,June 30(Budgetary Basis) $ 266,707 $ 264,527 301,015 $ 36,488
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 301,015
158
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
PUBLIC RESOURCES GRANTS
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ (5,560) $ (5,560) $ (5,560) $
Resources(Inflows):
Intergovernmental 14,730 - - -
Use of money and property - - (52) (52)
Contributions 9,510 - - -
Miscellaneous 360 - - -
Transfers in - 16,520 16,563 43
Amounts Available for Appropriations 19,040 10,960 10,951 (9)
Charges to Appropriation(Outflow):
General government 9,740 10,950 10,951 (1)
Total Charges to Appropriations 9,740 10,950 10,951 (1)
Budgetary Fund Balance,June 30(Budgetary Basis) $ 9,300 $ 10 - $ (10)
Encumbrances
Budgetary Fund Balance,June 30(GAAP Basis) $ -
159
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
INTEGRATED WASTE MANAGEMENT
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 4,121,814 $ 4,121,814 $ 4,121,814 $ -
Resources(Inflows):
Taxes 1,662,890 1,654,780 1,718,179 63,399
Licenses and permits 40,700 50,700 50,200 (500)
Use of money and property 65,760 42,660 (2,490) (45,150)
Miscellaneous 100,000 50,000 16,145 (33,855)
Amounts Available for Appropriations 5,991,164 5,919,954 5,903,848 (16,106)
Charges to Appropriation(Outflow):
Engineering and public works 1,350,070 1,311,540 1,277,871 33,669
Transfers out 218,390 218,390 218,390 -
Total Charges to Appropriations 1,568,460 1,529,930 1,496,261 33,669
Budgetary Fund Balance,June 30(Budgetary Basis) $ 4,422,704 $ 4,390,024 4,407,587 $ 17,563
Encumbrances 2,116
Budgetary Fund Balance,June 30(GAAP Basis) $ 4,409,703
160
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
SB1 -TCEP
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ - $ - $ - $ -
Resources(Inflows):
Intergovernmental 11,000,650 9,000,650 4,627,947 (4,372,703)
Amounts Available for Appropriations 11,000,650 9,000,650 4,627,947 (4,372,703)
Charges to Appropriation(Outflow):
General government 650 650 650 -
Capital outlay 11,000,000 9,000,000 7,111,691 1,888,309
Total Charges to Appropriations 11,000,650 9,000,650 7,112,341 1,888,309
Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - (2,484,394) $ (2,484,394)
Encumbrances 2,484,394
Budgetary Fund Balance,June 30(GAAP Basis) $ -
161
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
PUBLIC ART TRUST
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 138,679 $ 138,679 $ 138,679 $
Resources(Inflows):
Use of money and property 2,760 4,690 3,009 (1,681)
Developer participation - 443,950 443,950 -
Amounts Available for Appropriations 141,439 587,319 585,638 (1,681)
Charges to Appropriation(Outflow):
Community development - 30,540 5,343 25,197
Total Charges to Appropriations - 30,540 5,343 25,197
Budgetary Fund Balance,June 30(Budgetary Basis) $ 141,439 $ 556,779 580,295 $ 23,516
Encumbrances 2,500
Budgetary Fund Balance,June 30(GAAP Basis) $ 582,795
162
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
STATE GRANT FUNDS
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources(Inflows):
Intergovernmental 2,686,760 223,240 223,240 -
Amounts Available for Appropriations 2,686,760 223,240 223,240 -
Charges to Appropriation (Outflow):
Capital outlay 2,686,760 223,240 223,240 -
Total Charges to Appropriations 2,686,760 223,240 223,240 -
Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - - $ -
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ -
163
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
AD 91-2 REDEMPTION-DAY CANYON
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1, as restated $ 66,526 $ 66,526 $ 66,526 $ -
Resources(Inflows):
Taxes 33,660 33,660 33,822 162
Use of money and property 1,100 710 (91) (801)
Amounts Available for Appropriations 101,286 100,896 100,257 (639)
Charges to Appropriation(Outflow):
General government 25,850 21,160 21,384 (224)
Total Charges to Appropriations 25,850 21,160 21,384 (224)
Budgetary Fund Balance,June 30(Budgetary Basis) $ 75,436 $ 79,736 78,873 $ (863)
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 78,873
164
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
PD 85 MAINTENANCE
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1, as restated $ 2,860,348 $ 2,860,348 $2,860,348 $ -
Resources(Inflows):
Taxes 1,162,500 1,162,500 1,163,371 871
Charges for services 22,350 22,350 14,947 (7,403)
Use of money and property 168,430 154,840 128,455 (26,385)
Miscellaneous 500 500 - (500)
Transfers in 74,340 71,780 58,381 (13,399)
Amounts Available for Appropriations 4,288,468 4,272,318 4,225,502 (46,816)
Charges to Appropriation(Outflow):
Engineering and public works 1,146,850 1,026,920 921,530 105,390
Capital outlay 100,000 153,330 153,330 -
Transfers out - 6,180 - 6,180
Total Charges to Appropriations 1,246,850 1,186,430 1,074,860 111,570
Budgetary Fund Balance,June 30(Budgetary Basis) $ 3,041,618 $ 3,085,888 3,150,642 $ 64,754
Encumbrances 40,746
Budgetary Fund Balance,June 30(GAAP Basis) $3,191,388
165
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
CFD 2000-03 PARK MAINTENANCE
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1, as restated $ 431,887 $ 431,887 $ 431,887 $ -
Resources(Inflows):
Taxes 529,420 529,420 531,929 2,509
Charges for services - 500 520 20
Use of money and property 7,530 3,940 (1,524) (5,464)
Transfers in - 200 191 (9)
Amounts Available for Appropriations 968,837 965,947 963,003 (2,944)
Charges to Appropriation(Outflow):
General government 509,570 490,110 535,636 (45,526)
Capital outlay 148,000 81,360 - 81,360
Total Charges to Appropriations 657,570 571,470 535,636 35,834
Budgetary Fund Balance,June 30(Budgetary Basis) $ 311,267 $ 394,477 427,367 $ 32,890
Encumbrances 81,360
Budgetary Fund Balance,June 30(GAAP Basis) $ 508,727
166
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
CFD 2017-01 NO. ETIWANDA
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ - $ - $ - $ -
Resources(Inflows):
Taxes 3,020 3,020 3,016 (4)
Amounts Available for Appropriations 3,020 3,020 3,016 (4)
Charges to Appropriation(Outflow):
General government 1,220 1,220 1,220 -
Total Charges to Appropriations 1,220 1,220 1,220 -
Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,800 $ 1,800 1,796 $ (4)
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 1,796
167
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
CFD 2018-01 EMPIRE LAKES
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1, as restated $ 228,099 $ 228,099 $ 228,099 $ -
Resources(Inflows):
Taxes 123,180 112,100 112,093 (7)
Use of money and property 790 910 (1,173) (2,083)
Miscellaneous - 11,180 15,185 4,005
Amounts Available for Appropriations 352,069 352,289 354,204 1,915
Charges to Appropriation(Outflow):
General government 36,200 57,450 56,978 472
Capital outlay - 211,050 211,045 5
Transfers out 7,590 8,270 8,270 -
Total Charges to Appropriations 43,790 276,770 276,293 477
Budgetary Fund Balance,June 30(Budgetary Basis) $ 308,279 $ 75,519 77,911 $ 2,392
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 77,911
168
CITY OF RANCHO CUCAMONGA
BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS)
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1, as restated $ 7,436,478 $ 7,436,478 $ 7,436,478 $ -
Resources(Inflows):
Use of money and property 160,090 92,560 (8,452) (101,012)
Amounts Available for Appropriations 7,596,568 7,529,038 7,428,026 (101,012)
Charges to Appropriation(Outflow):
General government 601,530 333,130 3,130 330,000
Community development 1,420 2,630 2,630 -
Total Charges to Appropriations 602,950 335,760 5,760 330,000
Budgetary Fund Balance,June 30(Budgetary Basis) $ 6,993,618 $ 7,193,278 7,422,266 $ 228,988
Encumbrances -
Budgetary Fund Balance,June 30(GAAP Basis) $ 7,422,266
169
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.
170
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30,2021
Computer
Equipment Equipment/
and Vehicle Technology
Replacement Replacement Total
Assets:
Current:
Cash and investments $ 1,555,730 $ 2,667,934 $ 4,223,664
Receivables:
Accounts - 29,020 29,020
Accrued interest 3,477 5,957 9,434
Prepaid costs - 367,002 367,002
Total Current Assets 1,559,207 3,069,913 4,629,120
Noncurrent:
Capital assets-net of accumulated depreciation 3,225,760 2,212,268 5,438,028
Total Noncurrent Assets 3,225,760 2,212,268 5,438,028
Total Assets $ 4,784,967 $ 5,282,181 $ 10,067,148
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable $ 65,037 $ 14,214 $ 79,251
Accrued interest - 13,777 13,777
Capital leases - 488,350 488,350
Total Current Liabilities 65,037 516,341 581,378
Noncurrent:
Capital leases - 507,339 507,339
Total Noncurrent Liabilities - 507,339 507,339
Total Liabilities 65,037 1,023,680 1,088,717
Net Position:
Net invested in capital assets 3,225,760 1,216,579 4,442,339
Unrestricted 1,494,170 3,041,922 4,536,092
Total Net Position 4,719,930 4,258,501 8,978,431
Total Liabilities and Net Position $ 4,784,967 $ 5,282,181 $ 10,067,148
171
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2021
Computer
Equipment Equipment/
and Vehicle Technology
Replacement Replacement Total
Operating Revenues:
Interdepartmental charges $ 530,000 $ 584,190 $ 1,114,190
Miscellaneous 108 - 108
Total Operating Revenues 530,108 584,190 1,114,298
Operating Expenses:
Maintenance and operations 455,957 80,099 536,056
Contractual services 8,800 587,104 595,904
Depreciation expense 924,505 828,701 1,753,206
Total Operating Expenses 1,389,262 1,495,904 2,885,166
Operating Income(Loss) (859,154) (911,714) (1,770,868)
Nonoperating Revenues(Expenses):
Interest revenue 14,797 24,879 39,676
Interest expense - (47,428) (47,428)
Miscellaneous (19,660) (34,966) (54,626)
Total Nonoperating
Revenues(Expenses) (4,863) (57,515) (62,378)
Income(Loss)Before Transfers (864,017) (969,229) (1,833,246)
Transfers in 300,000 885,689 1,185,689
Changes in Net Position (564,017) (83,540) (647,557)
Net Position:
Beginning of Year 5,283,947 4,342,041 9,625,988
End of Fiscal Year $ 4,719,930 $ 4,258,501 $ 8,978,431
172
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2021
Computer
Equipment Equipment/
and Vehicle Technology
Replacement Replacement Total
Cash Flows from Operating Activities:
Cash received from interfund services provided $ 530,000 $ 584,190 $ 1,114,190
Cash paid to suppliers for goods and services (456,711) (520,199) (976,910)
Cash received from others 108 108
Net Cash Provided(Used)by Operating Activities 73,397 63,991 137,388
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in 300,000 885,689 1,185,689
Miscellaneous - (34,966) (34,966)
Net Cash Provided(Used)by
Non-Capital Financing Activities 300,000 850,723 1,150,723
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (305,627) (452,512) (758,139)
Principal paid on capital debt (470,310) (470,310)
Interest paid on capital debt (19,660) (57,020) (76,680)
Net Cash Provided(Used)by
Capital and Related Financing Activities (325,287) (979,842) (1,305,129)
Cash Flows from Investing Activities:
Interest received 16,377 28,092 44,469
Net Cash Provided(Used)by
Investing Activities 16,377 28,092 44,469
Net Increase(Decrease)in Cash
and Cash Equivalents 64,487 (37,036) 27,451
Cash and Cash Equivalents at Beginning of Year 1,491,243 2,704,970 4,196,213
Cash and Cash Equivalents at End of Year $ 1,555,730 $ 2,667,934 $ 4,223,664
Reconciliation of Operating Income to Net Cash
Provided(Used)by Operating Activities:
Operating income(loss) $ (859,154) $ (911,714) $ (1,770,868)
Adjustments to Reconcile Operating Income(loss)
Net Cash Provided(used)by Operating Activities:
Depreciation 924,505 828,701 1,753,206
(Increase)decrease in prepaid expense - 140,685 140,685
Increase(decrease)in accounts payable 8,046 6,319 14,365
Total Adjustments 932,551 975,705 1,908,256
Net Cash Provided(Used)by
Operating Activities $ 73,397 $ 63,991 $ 137,388
Non-Cash Investing,Capital,and Financing Activities:
Gain/(Loss)on Investments $ 19,660 $ 34,966 $ 54,626
173
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174
CITY OF RANCHO CUCAMONGA
Custodial Funds
Custodial 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.
Community Facilities District 2004-01 Fund — Established to account for the Community Facilities District
No. 2004-01 special tax revenues which are restricted repayment of the annual principal and semiannual
interest payment on the bonds.
Assessment District 93-1 Masi Commerce Center Fund — Established to account for the Assessment
District No. 93-1 assessment revenues which are restricted repayment of the annual principal and
semiannual interest payment on the bonds.
Community Facilities District 2000-01 South Etiwanda Fund — Established to account for the Community
Facilities District No. 2000-01 special tax revenues which are restricted repayment of the annual principal
and semiannual interest payment on the bonds.
Community Facilities District 2000-02 Rancho Cucamonga Corporate Park Fund — Established to account
for the Community Facilities District No. 2000-02 special tax revenues which are restricted repayment of
the annual principal and semiannual interest payment on the bonds.
Community Facilities District 2000-03 Rancho Summit Fund — Established to account for the Community
Facilities District No. 2000-03 special tax revenues which are restricted repayment of the annual principal
and semiannual interest payment on the bonds.
Community Facilities District 2001-01 Series A Fund — Established to account for the Community
Facilities District No. 2001-01 Series A special tax revenues which are restricted repayment of the annual
principal and semiannual interest payment on the bonds.
Community Facilities District 2001-01 Series B Fund — Established to account for the Community
Facilities District No. 2001-01 Series B special tax revenues which are restricted repayment of the annual
principal and semiannual interest payment on the bonds.
Community Facilities District 2003-01 Series A Fund — Established to account for the Community
Facilities District No. 2003-01 Series A special tax revenues which are restricted repayment of the annual
principal and semiannual interest payment on the bonds.
Community Facilities District 2003-01 Series B Fund — Established to account for the Community
Facilities District No. 2003-01 Series B special tax revenues which are restricted repayment of the annual
principal and semiannual interest payment on the bonds.
Community Facilities District 2006-01 Fund — Established to account for the Community Facilities District
No. 2006-01 special tax revenues which are restricted repayment of the annual principal and semiannual
interest payment on the bonds.
Community Facilities District 2006-02 Fund — Established to account for the Community Facilities District
No. 2006-02 special tax revenues which are restricted repayment of the annual principal and semiannual
interest payment on the bonds.
Assessment District 82-1 Fund - Established to account for assessments revenues for Assessment
District No. 82-1. These bonds are fully repaid.
Assessment District 84-2 Fund - Established to account for assessments revenues for Assessment
District No. 84-2. These bonds are fully repaid.
Community Facilities District 88-2 Fund — Established to account for special tax revenues for Community
Facilities District No. 88-2. These bonds are fully repaid.
175
CITY OF RANCHO CUCAMONGA
Custodial Funds
(Continued)
Community Facilities District 93-3 Foothill Marketplace Fund — Established to account for special tax
revenues for Community Facilities District No. 93-3. These bonds are fully repaid.
Assessment District 1999-1 Fund — Established to account for assessments revenues for Assessment
District No. 1999-1. These bonds are fully repaid.
176
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30,2021
AD 93-1 Masi
Commerce CFD 2000-01 CFD 2000-02
CFD 2004-01 Center So Etiwanda RC Corp Park
Assets:
Cash and investments $ 3,094,501 $ 494,991 $ 83,386 $ 495,109
Receivables:
Accounts - - - -
Taxes 24,544 - 263 1,160
Accrued interest 5,673 1,272 186 835
Cash and investments with fiscal agents 1,187,473 242,534 22,752 208,918
Total Assets $ 4,312,191 $ 738,797 $ 106,587 $ 706,022
Liabilities:
Accrued interest $ 375,322 $ 9,042 $ 2,427 $ 23,537
Bonds payable:
Due within one year 1,232,000 440,000 46,000 424,000
Due in more than one year 25,946,000 - 196,000 1,923,000
Total Liabilities $ 27,553,322 $ 449,042 $ 244,427 $ 2,370,537
Net Position:
Restricted for organizations and other governments (23,241,131) 289,755 (137,840) (1,664,515)
Total Net Position $ (23,241,131) $ 289,755 $ (137,840) $ (1,664,515)
177
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30,2021 (CONTINUED)
CFD 2000-03
Rancho CFD 2001-01 CFD 2001-01 CFD 2003-01
Summit Series A Series B Series A
Assets:
Cash and investments $ 521,269 $ 571,874 $ 58,391 $ 969,832
Receivables:
Accounts - - - -
Taxes 1,540 9,421 13,707
Accrued interest 843 8 - 1,491
Cash and investments with fiscal agents 260,778 303,566 29,473 1,417,126
Total Assets $ 784,430 $ 884,869 $ 87,864 $ 2,402,156
Liabilities:
Accrued interest $ 73,491 $ 63,254 $ 6,128 $ 195,854
Bonds payable:
Due within one year 298,000 409,000 40,000 525,000
Due in more than one year 5,433,000 5,010,000 485,000 11,150,000
Total Liabilities $ 5,804,491 $ 5,482,254 $ 531,128 $ 11,870,854
Net Position:
Restricted for organizations and other governments (5,020,061) (4,597,385) (443,264) (9,468,698)
Total Net Position $ (5,020,061) $ (4,597,385) $ (443,264) $ (9,4689698)
178
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30,2021
CFD 2003-01
Series B CFD 2006-01 CFD 2006-02 AD 82-1R
Assets:
Cash and investments $ 219,418 $ 325,801 $ 212,518 $
Receivables:
Accounts - - 2,016
Taxes - 3,487 -
Accrued interest 397 640 421
Cash and investments with fiscal agents 132,485 130,771 79,472
Total Assets $ 352,300 $ 460,699 $ 294,427 $ -
Liabilities:
Accrued interest $ 32,027 $ 40,201 $ 23,896 $
Bonds payable:
Due within one year 107,000 136,000 82,000
Due in more than one year 2,153,000 2,983,000 1,772,000
Total Liabilities $ 2,292,027 $ 3,159,201 $ 1,877,896 $
Net Position:
Restricted for organizations and other governments (1,939,727) (2,698,502) (1,583,469)
Total Net Position $ (1,939,727) $ (2,698,502) $ (1,583,469) $ -
179
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30,2021 (CONTINUED)
CFD 93-3
CFD 88-2 Foothill
AD 84-2 Police Marketplace AD 1999-1
Assets:
Cash and investments $ - $ - $ - $
Receivables:
Accounts - - -
Taxes - - -
Accrued interest - - -
Cash and investments with fiscal agents - - -
Total Assets $ - $ - $ - $ -
Liabilities:
Accrued interest $ - $ - $ - $
Bonds payable:
Due within one year - - -
Due in more than one year - - -
Total Liabilities $ $ - $ - $
Net Position:
Restricted for organizations and other governments - - -
Total Net Position $ - $ - $ - $
180
CITY OF RANCHO CUCAMONGA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30,2021
Total
Assets:
Cash and investments $ 7,047,090
Receivables:
Accounts 2,016
Taxes 54,122
Accrued interest 11,766
Cash and investments with fiscal agents 4,015,348
Total Assets $ 11,130,342
Liabilities:
Accrued interest $ 845,179
Bonds payable:
Due within one year 3,739,000
Due in more than one year 57,051,000
Total Liabilities $ 61,635,179
Net Position:
Restricted for organizations and other governments (50,504,837)
Total Net Position $ (50,504,837)
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182
CITY OF RANCHO CUCAMONGA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30,2021
AD 93-1 Masi
Commerce CFD 2000-01 So CFD 2000-02 RC
CFD 2004-01 Center Etiwanda Corp Park
Additions:
Investment earnings:
Net change in fair value of investments $ (37,857) $ (7,121) $ (1,101) $ (6,728)
Interest 26,356 5,707 853 3,733
Net investment earnings (11,501) (1,414) (248) (2,995)
Collection of special taxes 2,665,575 249,251 73,378 518,440
Total Additions 2,654,074 247,837 73,130 515,445
Deductions:
Administrative expenses 31,990 98,179 24,940 69,820
Contractual services - 1,500 - -
Interest expense 1,541,620 42,793 10,494 101,297
Payments to city - - - -
Total Deductions 1,573,610 142,472 35,434 171,117
Net Increase(Decrease)in Fiduciary Net Position 1,080,464 105,365 37,696 344,328
Net Position-Beginning, as Originally Reported - - - -
Restatement of Net Position (24,321,595) 184,390 (175,536) (2,008,843)
Net Position-Beginning, as Restated (24,321,595) 184,390 (175,536) (2,008,843)
Net Position-End of the Year $ (23,241,131) $ 289,755 $ (137,840) $ (1,664,515)
183
CITY OF RANCHO CUCAMONGA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
CFD 2000-03 CFD 2001-01 CFD 2001-01 CFD 2003-01
Rancho Summit Series A Series B Series A
Additions:
Investment earnings:
Net change in fair value of investments $ (6,511) $ (7,526) $ (732) $ (12,136)
Interest 3,928 95 6 7,195
Net investment earnings (2,583) (7,431) (726) (4,941)
Collection of special taxes 568,916 674,957 61,467 1,178,052
Total Additions 566,333 667,526 60,741 1,173,111
Deductions:
Administrative expenses 30,930 83,070 1,070 38,650
Contractual services - - - -
Interest expense 302,499 262,675 25,440 801,010
Payments to city - - - -
Total Deductions 333,429 345,745 26,510 839,660
Net Increase(Decrease)in Fiduciary Net Position 232,904 321,781 34,231 333,451
Net Position-Beginning, as Originally Reported - - - -
Restatement of Net Position (5,252,965) (4,919,166) (477,495) (9,802,149)
Net Position-Beginning, as Restated (5,252,965) (4,919,166) (477,495) (9,802,149)
Net Position-End of the Year $ (5,020,061) $ (4,597,385) $ (443,264) $ (9,468,698)
184
CITY OF RANCHO CUCAMONGA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30,2021
CFD 2003-01
Series B CFD 2006-01 CFD 2006-02 AD 82-1R
Additions:
Investment earnings:
Net change in fair value of investments $ (2,907) $ (4,167) $ (2,719) $ -
Interest 1,790 2,924 1,929 Net investment earnings (1,117) (1,243) (790) -
Collection of special taxes 201,043 284,839 181,186 -
Total Additions 199,926 283,596 180,396 -
Deductions:
Administrative expenses 11,700 19,550 19,500 -
Contractual services - - - -
Interest expense 131,545 165,092 98,200 -
Payments to city - - - 47
Total Deductions 143,245 184,642 117,700 47
Net Increase(Decrease)in Fiduciary Net Position 56,681 98,954 62,696 (47)
Net Position-Beginning, as Originally Reported - - - -
Restatement of Net Position (1,996,408) (2,797,456) (1,646,165) 47
Net Position-Beginning, as Restated (1,996,408) (2,797,456) (1,646,165) 47
Net Position-End of the Year $ (1,939,727) $ (2,698,502) $ (1,583,469) $ -
185
CITY OF RANCHO CUCAMONGA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30,2021 (CONTINUED)
CFD 93-3
CFD 88-2 Foothill
AD 84-2 Police Marketplace AD 1999-1
Additions:
Investment earnings:
Net change in fair value of investments $ - $ (105) $ (26) $ (2,719)
Interest - - -Net investment earnings - (105) (26) (2,719)
Collection of special taxes - - - -
Total Additions - (105) (26) (2,719)
Deductions:
Administrative expenses - - - 250
Contractual services - - -
Interest expense - - - -
Payments to city 46 13,401 4,040 321,352
Total Deductions 46 13,401 4,040 321,602
Net Increase(Decrease)in Fiduciary Net Position (46) (13,506) (4,066) (324,321)
Net Position-Beginning, as Originally Reported - - - -
Restatement of Net Position 46 13,506 4,066 324,321
Net Position-Beginning, as Restated 46 13,506 4,066 324,321
Net Position-End of the Year $ - $ - $ - $ -
186
CITY OF RANCHO CUCAMONGA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30,2021
Totals
Additions:
Investment earnings:
Net change in fair value of investments $ (92,355)
Interest 54,516
Net investment earnings (37,839)
Collection of special taxes 6,657,104
Total Additions 6,619,265
Deductions:
Administrative expenses 429,649
Contractual services 1,500
Interest expense 3,482,665
Payments to city 338,886
Total Deductions 4,252,700
Net Increase(Decrease)in Fiduciary Net Position 2,366,565
Net Position-Beginning, as Originally Reported -
Restatement of Net Position (52,871,402)
Net Position-Beginning, as Restated (52,871,402)
Net Position-End of the Year $ (50,504,837)
187
City of Rancho Cucamonga
Annual Comprehensive Financial Report
June 30, 2021
Statistical Section
Certain schedules recommended for inclusion in Annual
Comprehensive 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.
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189
M�r
This part of the City of Rancho Cucamonga's annual comprehensive 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
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.
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.
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's
current levels of outstandina debt and the Citv's abilitv to issue additional debt in the future.
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.
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.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
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191
CITY OF RANCHO CUCAMONGA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Governmental activities:
Investment in capital assets $ 801,333,979 $ 784,815,868 $ 786,942,172 $ 819,589,002 $ 791,849,229 $ 738,555,693 $ 723,399,215 $ 718,539,205 $ 687,839,504 $ 683,206,928
Restricted 386,151,633 362,202,181 347,133,366 314,706,032 376,102,366 343,261,614 294,289,084 292,367,349 340,219,852 284,653,397
Unrestricted 102,102,912 92,851,674 90,907,741 86,031,110 58,567,782 101,752,275 119,693,433 164,042,159 101,236,260 81,192,537
Total governmental activities net position $ 1,289,588,524 $ 1,239,869,723 $1,224,983,279 $1,220,326,144 $1,226,519,377 $1,183,569,582 $1,137,381,732 $1,174,948,713 $1,129,295,616 $1,049,052,862
Business-type activities:
Investment in capital assets $ 39,126,035 $ 38,550,464 $ 34,506,531 $ 33,679,139 $ 32,434,369 $ 28,183,314 $ 25,869,537 $ 25,457,466 $ 26,158,620 $ 27,166,018
Restricted 351,851 584,719 629,390 733,900 770,383 717,336 718,571 858,497 827,164 19,230
Unrestricted 18,811,705 17,960,938 17,007,191 15,096,398 12,073,232 10,145,015 10,875,224 10,380,836 7,668,810 6,305,053
Total business-type activities net position $ 58,289,591 $ 57,096,121 $ 52,143,112 $ 49,509,437 $ 45,277,984 $ 39,045,665 $ 37,463,332 $ 36,696,799 $ 34,654,594 $ 33,490,301
Primary government:
Investment in capital assets $ 840,460,014 $ 823,366,332 $ 821,448,703 $ 853,268,141 $ 824,283,598 $ 766,739,007 $ 749,268,752 $ 743,996,671 $ 713,998,124 $ 710,372,946
Restricted 386,503,484 362,786,900 347,762,756 315,439,932 376,872,749 343,978,950 295,007,655 293,225,846 341,047,016 284,672,627
Unrestricted 120,914,617 110,812,612 107,914,932 101,127,508 70,641,014 111,897,290 130,568,657 174,422,995 108,905,070 87,497,590
Total primary government net position $ 1,347,878,115 $ 1,296,965,844 $1,277,126,391 $1,269,835,581 $1,271,797,361 $1,222,615,247 $1,174,845,064 $1,211,645,512 $1,163,950,210 $1,082,543,163
CO
fV
CITY OF RANCHO CUCAMONGA
Statement of Activities(Condensed)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Expenses:
Governmental activities:
General government $ 22,450,487 $ 19,286,640 $ 19,670,962 $ 31,792,123 $ 19,738,312 $ 18,418,827 $ 17,955,450 $ 16,643,829 $ 18,009,415 $ 38,658,739
Public safety-police 44,200,543 41,858,815 40,689,664 38,576,433 36,753,481 34,083,785 32,076,421 30,849,283 29,750,436 28,116,587
Public safety-fire protection 43,819,839 42,713,637 37,963,605 34,557,791 32,821,186 29,524,711 30,277,795 29,127,968 28,126,113 33,196,194
Public safety-animal center 2,652,789 3,329,047 3,307,736 3,263,155 3,414,315 2,697,430 2,721,890 2,569,847 2,795,585 2,532,280
Community development 21,053,431 18,942,599 17,684,128 16,675,413 16,799,089 14,653,176 14,899,940 15,772,923 15,781,913 16,244,217
Community services 12,922,140 17,634,143 18,442,135 19,060,265 16,437,565 13,852,277 14,995,308 13,690,338 13,193,275 12,452,334
Engineering and public works 33,574,147 35,467,833 30,443,979 31,573,819 35,926,739 36,298,028 29,180,515 29,600,137 26,363,913 29,999,633
Interest on long-term debt 269,752 258,635 232,919 213,912 172,041 806,322 239,368 234,057 202,737 4,402,503
Total governmental activities expenses 180,943,128 179,491,349 168,435,128 175,712,911 162,062,728 150,334,556 142,346,687 138,488,382 134,223,387 165,602,487
Business-type activities:
Municipal Utility 10,747,217 10,641,764 9,407,567 8,419,196 7,904,738 8,436,122 8,341,877 8,173,924 8,524,944 8,447,347
Fiber Optic Network 1,044,879 736,499 658,291 144,924 - - - 33,853 - -
Sports Complex 2,302,733 2,857,684 2,746,411 2,851,970 2,981,392 2,663,119 2,536,440 2,186,016 2,229,025 2,357,022
REGIS Connect - 270 19,284 104,969 167,618 65,042 57,003 33,853 - -
Total business-type activities expenses 14,094,829 14,236,217 12,831,553 11,521,059 11,053,748 11,164,283 10,935,320 10,427,646 10,753,969 10,804,369
Total primary government expenses 195,037,957 193,727,566 181,266,681 187,233,970 173,116,476 161,498,839 153,282,007 148,916,028 144,977,356 176,406,856
Program revenues:
WGovernmental activities:
Charges for services:
General government 9,475,907 8,984,984 8,576,190 7,298,350 7,017,166 7,129,716 6,903,116 6,987,387 6,076,402 6,110,594
Public safety-police 1,358,233 778,374 1,541,582 1,525,700 1,444,596 1,040,776 1,203,718 1,152,805 939,077 999,851
Public safety-fire protection 116,648 330,210 552,486 314,507 - 242,620 1,465,438 1,065,852 1,811,862 1,817,225
Public safety-animal center 109,803 186,283 215,137 211,865 191,073 215,147 206,941 186,434 206,758 199,778
Community development 11,770,864 11,391,312 11,281,208 10,807,270 10,726,558 10,764,422 12,842,242 10,814,827 10,990,432 10,169,052
Community services 483,665 2,302,821 3,260,244 3,329,478 3,251,353 3,316,077 3,162,413 3,295,354 3,317,910 3,254,444
Engineering and public works 6,998,156 6,619,231 8,778,764 5,896,355 5,211,940 3,455,200 4,332,873 4,841,725 3,660,502 3,908,462
Operating contributions and grants 15,901,843 12,062,536 10,961,729 8,845,496 5,326,579 14,464,379 8,216,190 9,237,651 6,572,325 9,857,896
Capital contributions and grants 24,768,600 14,633,970 17,347,427 16,584,193 8,184,228 31,356,340 12,145,954 6,241,838 13,439,525 4,500,872
Total governmental activities
program revenues 70,983,719 57,289,721 62,514,767 54,813,214 41,353,493 71,984,677 50,478,885 43,823,873 47,014,793 40,818,174
Business-type activities:
Charges for services:
Municipal Utility 12,663,515 12,389,983 12,777,773 12,317,610 11,713,175 11,336,608 11,973,419 11,276,531 11,085,315 11,523,731
Fiber Optic Network 103,575 91,596 81,605 58,857 23,750 - - - - -
Sports Complex 236,650 479,896 540,972 248,828 218,220 169,099 262,818 300,379 319,764 327,490
REGIS Connect - - 25,470 42,930 114,120 82,300 82,490 58,949 - -
Capital contributions and grants 1,442,873 4,050,235 662,677 679,410 4,560,732 - - - - -
Total business-type activities
program revenues 14,446,613 17,011,710 14,088,497 13,347,635 16,629,997 11,588,007 12,318,727 11,635,859 11,405,079 11,851,221
Total primary government
program revenues 85,430,332 74,301,431 76,603,264 68,160,849 57,983,490 83,572,684 62,797,612 55,459,732 58,419,872 52,669,395
CITY OF RANCHO CUCAMONGA
Statement of Activities(Condensed)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Net revenues(expenses):
Governmental activities (109,959,409) (122,201,628) (105,920,361) (120,899,697) (120,709,235) (78,349,879) (91,867,802) (94,664,509) (87,208,594) (124,784,313)
Business-type activities 351,784 2,775,493 1,256,944 1,826,576 5,576,249 423,724 1,383,407 1,208,213 651,110 1,046,852
Total net revenues(expenses) (109,607,625) (119,426,135) (104,663,417) (119,073,121) (115,132,986) (77,926,155) (90,484,395) (93,456,296) (86,557,484) (123,737,461)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 91,685,839 77,021,958 75,479,699 72,760,297 67,294,479 65,542,841 63,237,623 58,911,798 125,719,032 100,711,408
Admissions tax - 3,728 7,493 6,008 4,810 4,063 27,642 55,258 78,508 11,649
Transient occupancy taxes 2,726,555 3,511,232 4,054,058 3,578,006 3,282,360 3,055,397 2,729,270 2,554,570 2,056,597 1,927,812
Sales taxes 34,565,886 29,480,466 32,803,372 31,478,294 29,288,386 28,231,405 28,043,495 26,277,429 25,281,021 25,547,933
Franchise taxes 9,229,371 8,579,436 8,000,389 7,997,948 7,538,415 7,678,384 7,753,103 7,515,229 7,037,905 5,812,817
Motor vehicle in lieu,unrestricted 128,734 141,996 84,803 93,340 84,510 70,457 73,316 75,900 91,710 88,508
Use of money and property 5,956,806 13,421,654 19,113,374 5,781,295 5,735,054 7,644,579 6,691,150 7,933,441 2,872,457 20,205,266
Other 7,576,654 6,216,788 7,764,377 7,955,074 6,811,380 10,570,641 10,087,638 8,820,348 4,550,772 4,751,712
Contributions from other governments - - - - - - - 29,851,545 - -
Gain on sale of capital assets 57,563 100,301
Extraordinary item - (295,169) 58,427
? Extraordinary item on dissolution
of Redevelopment Agency - (11,296,301)
Special Item - (36,406,951) 38,257,705 - - - -
Transfers (809,757) (1,289,186) (380,681) (676,159) (222,537) (534,114) (200,980) (332,830) (236,654) (166,110)
Total governmental activities 151,060,088 137,088,072 110,577,496 128,974,103 158,074,562 122,263,653 118,147,088 141,821,416 167,451,348 147,594,694
Business-type activities:
Admission tax 32,500 140,277 146,181 62,195 127,934 196,385 70,278 103,308 105,839 69,581
Use of money and property (11,742) 748,053 849,869 390,833 256,370 375,435 310,644 304,113 156,824 310,237
Other 11,171 - - 601,075 49,229 52,675 17,306 59,888 13,866 11,452
Transfers 809,757 1,289,186 380,681 676,159 222,537 534,114 200,980 332,830 236,654 166,110
Total business-type activities 841,686 2,177,516 1,376,731 1,730,262 656,070 1,158,609 599,208 800,139 513,183 557,380
Total primary government 151,901,774 139,265,588 111,954,227 130,704,365 158,730,632 123,422,262 118,746,296 142,621,555 167,964,531 148,152,074
Changes in net position:
Governmental activities 41,100,679 14,886,444 4,657,135 8,074,406 37,365,327 43,913,774 26,279,286 47,156,907 80,242,754 22,810,381
Business-type activities 1,193,470 4,953,009 2,633,675 3,556,838 6,232,319 1,582,333 1,982,615 2,008,352 1,164,293 1,604,232
Total primary government $ 42,294,149 $ 19,839,453 $ 7,290,810 $ 11,631,244 $ 43,597,646 $ 45,496,107 $ 28,261,901 $ 49,165,259 $ 81,407,047 $ 24,414,613
CITY OF RANCHO CUCAMONGA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
General Fund:
Nonspendable $ 13,690,749 $ 14,898,477 $ 15,996,672 $ 16,980,622 $ 6,035,467 $ 6,304,659 $ 4,024,826 $ 14,266,118 $ 14,516,414 $ 15,006,552
Restricted 9,631,596 12,720,339 10,000,336 6,351,557 8,152,268 4,256,949 3,091,255 1,527,198 1,853,526 1,331,926
Committed 73,280,103 68,240,058 72,103,374 71,335,361 69,939,616 75,193,291 74,310,635 68,857,871 66,508,246 52,707,232
Assigned 30,154,237 24,978,451 20,680,463 20,414,553 27,837,965 24,762,041 24,724,037 24,541,289 17,248,317 4,659,235
Total General Fund $ 126,756,685 $ 120,837,325 $ 118,780,845 $ 115,082,093 $ 111,965,316 $ 110,516,940 $ 106,150,753 $ 109,192,476 $ 100,126,503 $ 73,704,945
All other governmental funds:
Nonspendable $ 353,000 $ 210,875 $ 273,968 $ 333,012 $ 152,628 $ 143,987 $ 121,898,056 $ 119,252,242 $ 123,138,331 $ 123,034,481
Restricted 336,949,180 322,090,080 300,217,925 276,926,931 295,093,183 270,307,985 129,495,612 109,579,369 96,921,657 97,589,375
Committed 45,172,750 41,474,853 41,633,706 40,295,153 41,954,990 43,026,277 41,239,963 40,846,591 43,796,727 21,901,192
Assigned 28,464,822 20,872,492 22,798,449 15,287,695 9,290,502 25,606,377 23,778,666 22,697,507 20,982,247 1,677,804
Unassigned (4,290,919) (4,899,160) (5,587,201) (7,096,108) (142,352) (1,131,670) (514,340) (576,924) (576,360) (620,730)
Total all other governmental funds $ 406,648,833 $ 379,749,140 $ 359,336,847 $ 325,746,683 $ 346,348,951 $ 337,952,956 $ 315,897,957 $ 291,798,785 $ 284,262,602 $ 243,582,122
CO
Ui
CITY OF RANCHO CUCAMONGA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Revenues:
Taxes $ 152,020,165 $ 131,914,339 $ 133,377,533 $ 128,469,600 $ 119,970,717 $ 119,703,685 $ 113,149,656 $ 107,276,318 $ 173,570,492 $ 145,260,709
Licenses and permits 5,777,822 5,597,387 4,941,123 4,639,219 4,274,825 4,353,727 4,245,688 3,876,449 3,896,973 3,877,269
Intergovernmental 25,525,250 17,265,617 15,990,890 12,960,734 16,859,643 24,000,432 15,156,829 12,808,079 11,636,537 14,533,427
Charges for services 5,552,615 7,561,050 8,953,709 7,240,417 6,470,452 6,822,557 6,722,125 7,918,741 6,322,317 6,941,778
Use of money and property 3,158,954 10,425,355 16,310,820 3,519,828 4,036,737 5,675,579 4,917,234 6,002,756 423,663 14,102,161
Fines and forfeitures 1,320,788 959,003 1,828,096 1,688,965 1,249,351 1,161,894 1,441,231 1,177,803 1,135,815 1,073,312
Contributions 248,823 432,035 514,193 575,123 662,854 4,717,131 762,415 784,540 1,081,330 2,724,115
Developer participation 11,902,117 8,399,023 13,473,699 9,924,665 7,117,954 7,795,528 12,051,237 4,929,192 3,295,120 2,197,474
Miscellaneous 7,874,647 6,386,915 8,671,089 9,162,631 6,819,525 10,545,310 12,276,817 10,475,281 25,131,589 5,739,953
Total revenues 213,381,181 188,940,724 204,061,152 178,181,182 167,462,058 184,775,843 170,723,232 155,249,159 226,493,836 196,450,198
Expenditures
Current:
General government 19,754,199 16,939,055 18,012,280 30,564,911 16,622,855 17,891,520 16,056,022 14,326,672 16,025,746 32,711,300
Public safety-police 43,507,427 41,110,280 40,006,374 37,899,533 36,138,669 33,524,295 31,553,594 30,411,403 29,331,461 27,656,575
Public safety-fire protection 42,825,333 35,465,674 32,264,246 32,280,716 30,336,949 33,176,658 29,526,901 28,462,817 45,796,870 31,901,079
Public safety-animal center 2,399,523 3,031,587 3,230,781 3,113,889 3,007,643 2,924,840 2,745,903 2,569,847 2,518,831 2,532,280
Community development 20,133,316 17,817,804 17,522,679 16,030,847 15,449,447 14,945,240 14,646,602 15,167,284 15,656,282 15,024,831
Community services 7,114,800 11,837,246 13,869,406 14,086,226 13,179,568 12,575,734 12,239,617 11,881,755 11,621,182 12,151,003
Engineering and public works 18,054,572 17,452,234 20,472,914 18,925,102 19,920,719 26,420,727 16,984,218 17,616,297 16,437,903 16,917,057
Capital outlay 33,256,726 20,759,403 18,772,606 41,757,957 27,736,389 17,151,712 19,486,586 12,204,148 18,387,329 22,863,638
Debt service:
Principal retirement - - - 18,759 21,901 21,260 20,104 20,021 3,803 9,884,677
Interest and fiscal charges 167,698 191,382 202,647 199,747 139,598 756,224 181,682 197,935 201,373 11,092,047
Pass-through agreement payments - - - - - - - - - 3,030,962
Total expenditures 187,213,594 164,604,665 164,353,933 194,877,687 162,553,738 159,388,210 143,441,229 132,858,179 155,980,780 185,765,449
Excess(deficiency)of revenues
over(under)expenditures 26,167,587 24,336,059 39,707,219 (16,696,505) 4,908,320 25,387,633 27,282,003 22,390,980 70,513,056 10,684,749
Other financing sources(uses):
Transfers in 5,756,736 5,052,697 2,804,478 2,770,399 2,446,170 2,323,725 2,060,144 2,161,845 2,339,457 1,280,073
Transfers out (7,752,182) (7,019,213) (5,283,519) (3,629,498) (3,259,107) (3,589,579) (3,107,795) (3,073,328) (6,104,811) (3,191,663)
Long-term debt issued - 57,242
Capital leases - - - - - - - - 105,848 -
Proceeds from sale of capital asset 28,790 99,230 60,738 70,113 164,520 25,331 24,178 100,301 57,701 52,819
Total other financing sources(uses) (1,966,656) (1,867,286) (2,418,303) (788,986) (648,417) (1,240,523) (1,023,473) (811,182) (3,601,805) (1,801,529)
Extraordinary item - - - - - - (5,201,081) (3,473,832) - (315,804,995)
Net change in fund balances $ 24,200,931 $ 22,468,773 $ 37,288,916 $ (17,485,491) $ 4,259,903 $ 24,147,110 $ 21,057,449 $ 18,105,966 $ 66,911,251 $ (306,921,775)
Debt service as a percentage of
noncapital expenditures' 0.10% 0.13% 0.14% 0.12% 0.11% 0.55% 0.16% 0.24% 0.15% 12.77%
CITY OF RANCHO CUCAMONGA
Assessed Value and Estimated Value of Taxable Property
(in thousands of dollars)
Last Ten Fiscal Years
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Residential $ 20,468,775 $19,563,158 $18,747,242 $17,775,114 $16,641,454 $16,063,674 $15,244,895 $13,988,519 $13,346,484 $13,121,710
Commercial 2,927,439 2,824,976 2,680,215 2,559,971 2,354,367 2,261,894 2,229,715 2,221,814 2,318,264 2,385,782
Industrial 3,653,660 3,406,909 3,235,492 2,976,956 2,802,918 2,667,060 2,504,695 2,402,218 2,279,456 2,244,509
Dry Farm 973 954 936 977 957 943 920 920 902 884
Gov't Owned 2,831 3,882 3,806 3,659 3,587 7,839 7,745 7,732 4,613 4,080
Institutional 51,853 46,328 45,436 45,531 43,495 42,113 41,023 49,286 43,504 42,727
Irrigated 3,768 3,694 3,686 3,552 3,483 3,433 3,366 3,439 3,372 3,306
Miscellaneous 58,616 60,464 50,481 55,920 294,036 18,964 23,805 27,365 29,486 17,908
Recreational 34,823 35,309 32,926 32,634 44,814 40,343 41,663 47,757 47,419 52,076
Vacant 509,897 509,018 501,443 408,907 374,179 350,353 327,609 330,538 348,323 387,514
SBE Nonunitary 875 875 7,994 24,483 24,173 28,682 22,485 26,591 36,691 54,451
Unsecured 1,202,802 1,186,787 1,109,392 1,075,088 1,154,119 1,233,623 1,190,416 1,111,254 1,125,986 1,092,355
Unknown 16,326 49,698
TOTALS $ 28,916,312 $27,642,354 $26,419,049 $24,962,792 $23,741,582 $22,718,921 $21,638,337 $20,217,433 $19,600,826 $19,457,000
Total Direct Rate 0.17792% 0.17794% 0.17794% 0.17794% 0.17795% 0.17790% 0.17775% 0.17772% 0.47780% 0.48250%
Notes:
Exempt values are not included in Total.
CO
4 In 1978,the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%based upon the assessed value of the property being taxed. Each year,the assessed value of
property may be increased by an"inflation factor"(limited to a maximum of 2%). With few exceptions,property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that
point,the property is reassessed based upon the added value of the construction or at the purchase price(market value)or economic value of the property sold. The assessed valuation data shown above represents the
only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Beginning in 2017,the net taxable value per HdL Coren&Cone(HdL)was utilized in lieu of the Agency Net Valuation provided by the County of San Bernardino Auditor-Controller'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.
Data Source: San Bernardino County Assessor 2011/12-2020/21 Combined Tax Rolls;HdL,Coren&Cone
CITY OF RANCHO CUCAMONGA
Direct and Overlapping Property Tax Rates
(Rate per$100 of taxable value)
Last Ten Fiscal Years
Fiscal Year
Agency 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Basic Levy' 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Alta Loma Elementary Bond 0.04570 0.06530 0.06800 0.05640 0.04080 0.04170 0.04370 0.04500 0.04580 0.04530
Central Elementary Bond 0.04890 0.05020 0.04650 0.06700 0.06880 0.06500 0.06600 0.07110 0.07270 0.06880
Chaffey Community College Bond 0.01110 0.02410 0.01530 0.00880 0.01160 0.01130 0.01090 0.01570 0.01110 0.01530
Chaffey High School Bond 0.03520 0.03750 0.04020 0.02790 0.03190 0.04090 0.02940 0.03710 0.01010 0.01940
Etiwanda Elementary Bond 0.02830 0.00340 0.02860 0.01690 - - - - - -
Fontana Unified School Bond 0.06710 0.04200 0.08900 0.11130 0.11170 0.11450 0.13840 0.15160 0.15010 0.14600
Metropolitan Water Agency 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00370
Upland Unified School Bond 0.05150 0.05600 0.05870 0.05510 0.06070 0.05250 0.04620 0.04840 0.05240 0.04740
Total Direct&Overlapping'Tax Rates 1.29130 1.28200 1.34980 1.34690 1.32900 1.32940 1.33810 1.37240 1.34570 1.34590
City Share of 1%levy per Prop 133 0.17591 0.17591 0.17591 0.17591 0.17591 0.17591 0.17591 0.17591 0.17591 0.17591
Redevelopment Rate' - - - - - - - - - 1.00370
00 Total Direct Rate' 0.17792 0.17794 0.17794 0.17794 0.17795 0.17790 0.17775 0.17772 0.47780 0.48250
Notes:
In 1978,California voters passed Proposition 13 which set the property tax rate at a 1.00%fixed amount. This 1.00%is shared by all taxing agencies for which the subject property resides within.
In addition to the 1.00%fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.
3 City's share of 1%Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted
where known.
4 Redevelopment Rate is based on the largest RDA tax rate area(TRA)and only includes rate(s)from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping
rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the Fiscal Year 2012/13 and years thereafter.
5 Total Direct Rate is the weighted average of all individual direct rates applied by the City preparing the statistical section information and excludes revenues derived from aircraft. Beginning in Fiscal
Year 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have
been resolved during Fiscal Year 2012/13. For the purposes of this report,residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.
Data Source: San Bernardino County Assessor 2011/12-2020/21 Tax Rate Table;HdL,Coren&Cone
CITY OF RANCHO CUCAMONGA
Principal Property Taxpayers
Current Year and Nine Years Ago
2021 2012
Percent of Percent of
Total City Total City
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Rancho Mall LLC 353,848,702 1.22% - 0.00%
Homecoming at Terra Vista LLC 284,990,990 0.99% - 0.00%
Prologis/Catellus 192,119,070 0.66% - 0.00%
Frito Lay Inc 174,031,858 0.60% - 0.00%
Schlosser Forge Company 158,780,504 0.55% - 0.00%
CH Realty VIII MF Rancho Cucamonga 148,806,481 0.51% - 0.00%
MFREVF II-Empire Lakes LLC 140,302,303 0.49% - 0.00%
GS Rancho LLC 129,244,065 0.45% - 0.00%
Goodman Rancho SPE LLC 118,024,239 0.41% - 0.00%
EQR-Fanwell 2007 LP 111,065,941 0.38% - 0.00%
Victoria Gardens Mall - 0.00% 238,513,828 1.23%
Homecoming I At Terra Vista LLC - 0.00% 118,951,269 0.61%
T-Napf Meritage Ownership LLC - 0.00% 117,364,505 0.60%
Catellus Development - 0.00% 101,216,200 0.52%
EQR-Fanwell 2007 LP - 0.00% 95,229,844 0.49%
Knickerbocker Properties Inc XLVII - 0.00% 83,117,847 0.43%
PPF MF 9200 Milliken Avenue LP - 0.00% 77,757,982 0.40%
UDR Rancho Cucamonga LP - 0.00% 76,567,075 0.39%
ARI-AOB 29 LLC - 0.00% 70,938,548 0.36%
YTC Investments LLC - 0.00% 70,065,100 0.36%
1,811,214,153 6.26% $ 1,049,722,198 5.40%
199
CITY OF RANCHO CUCAMONGA
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2012 93,318,030 86,742,369 92.95% N/A 86,742,369 92.95%
2013 93,235,913 85,131,812 91.31% N/A 85,131,812 91.31%
2014 95,016,035 93,063,071 97.94% N/A 93,063,071 97.94%
2015 100,428,866 98,457,115 98.04% N/A 98,457,115 98.04%
2016 105,120,614 103,112,427 98.09% N/A 103,112,427 98.09%
2017 108,069,418 107,991,619 99.93% N/A 107,991,619 99.93%
2018 112,950,393 114,778,741 101.62% N/A 114,778,741 101.62%
2019 119,970,594 122,206,002 101.86% N/A 122,206,002 101.86%
2020 126,916,757 128,333,882 101.12% N/A 128,333,882 101.12%
2021 136,728,688 135,393,834 99.02% N/A 135,393,834 99.02%
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
200
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201
CITY OF RANCHO CUCAMONGA
Principal Sales Tax Remitters'
Current Year and Nine Years Ago
20212 2012
Business Name Business Category Business Name Business Category
Bass Pro Shops Outdoor World Sports Goods/Bike Stores Ameron International Contractors
Best Buy Electronics/Appliance Stores Apple Electronics/Appliance Stores
Carbon 38 Women's Apparel Bass Pro Shops Outdoor World Sporting Goods/Bike Stores
Cmc Steel California Heavy Industrial Best Buy Electronics/Appliance Stores
Costco Discount Department Stores Chevron Service Stations
Crossroads Equipment Lease&Fin Trailers/Auto Parts Circle K Service Stations
Home Depot Building Materials Circle K 76 Service Stations
Huttig Building Materials Costco Discount Department Stores
ICL Performance Products Drugs/Chemicals Day Creek Arco Service Stations
Jerome's Home Furnishings Day Creek Shell Service Stations
Living Spaces Furniture Home Furnishings Haven Mobil Service Stations
Lowes Building Materials Home Depot Building Materials
Macys Department Stores JC Penney Department Stores
Monoprice Fulfillment Centers Living Spaces Furniture Home Furnishings
Parallon Supply Chain Solutions Medical/Biotech Lowes Building Materials
Ralphs Grocery Stores Macys Department Stores
Schwarz Paper Company Light Industrial/Printers Monoprice Fulfillment Centers
Scientific Games Light Industrial/Printers NIC Partners Electrical Equipment
Shell Service Stations Novartis Animal Health Medical/Biotech
Stater Bros Grocery Stores Sears Department Stores
Target Discount Department Stores Sharp Electronics Office Equipment
Tesla Motors New Motor Vehicle Dealers Shell Service Stations
Total Wine&More Convenience Stores/Liquor Southwire Energy/Utilities
Walmart Discount Department Stores Target Discount Dept Stores
Walters Wholesale Electric Plumbing/Electrical Supplies Walmart Discount Dept Stores
Notes:
Firms listed alphabetically
202
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 Loans Activities
2012 2 - - - - -
2013 - 2,615,708 - - 2,615,708
2014 - 2,083,890 - - 2,083,890
2015 - 1,564,076 - - 1,564,076
2016 - 1,034,303 - - 1,034,303
2017 - 486,229 - - 486,229
2018 - - - - -
2019 - 1,919,173 - - 1,919,173
2020 - 1,465,999 - - 1,465,999
2021 - 995,689 - - 995,689
Notes:
Details regarding the City's outstanding debt can be found in the notes to financial statements
This ratio is calculated using personal income and population for the prior calendar year.
2 As a result of the dissolution of the Redevelopment Agency on January 31, 2012, Tax Allocation Bonds
and Loans indebtedness were transferred to the Successor Agency.
203
CITY OF RANCHO CUCAMONGA
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Business-type Activities
Lease Total Total Percentage Debt
Revenue Certificates of Business-type Primary of Personal Per
Bonds Participation Activities Government Income Capita
- 0.00% -
- 2,615,708 0.05% 15
- - 2,083,890 0.04% 12
- - 1,564,076 0.03% 9
- - 1,034,303 0.02% 6
- - 486,229 0.01% 3
- - - - 0.00% -
13,555,938 - 13,555,938 15,475,111 0.27% 86
13,179,158 - 13,179,158 14,645,157 0.24% 83
12,687,378 - 12,687,378 13,683,067 0.22% 78
204
CITY OF RANCHO CUCAMONGA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Outstanding General Bonded Debt
Fiscal Year General Tax Percent of Percentage
Ended Obligation Allocation Assessed of Personal Per
June 30 Bonds Bonds Total Value 1 Income 2 Capita 2
2012 3 - - - 0.00% 0.00% -
2013 - - - 0.00% 0.00% -
2014 - - - 0.00% 0.00% -
2015 - - - 0.00% 0.00% -
2016 - - - 0.00% 0.00% -
2017 - - - 0.00% 0.00% -
2018 - - - 0.00% 0.00% -
2019 - - - 0.00% 0.00% -
2020 - - - 0.00% 0.00% -
2021 - - - 0.00% 0.00% -
Notes:
General bonded debt is debt payable with governmental fund resources and general obligation
bonds recorded in enterprise funds (of which, the City has none).
Assessed value has been used because the actual value of taxable property is not readily
available in the State of California.
2 These ratios are calculated using personal income and population for the prior calendar year.
3 As a result of the dissolution of the Redevelopment Agency on January 31, 2012, indebtedness was
transferred to the Successor Agency.
205
CITY OF RANCHO CUCAMONGA
Direct and Overlapping Debt
June 30,2021
City Net Taxable Assessed Value $ 28,916,312,421 2
City
Percentage Total Share of
Applicable ' Debt 6/30/21 Debt
Overlapping Tax and Assessment Debt:
Metropolitan Water District 0.886% $ 26,830,000.00 237,714
Chaffey Community College District 22.686% 315,490,000 71,572,061
Chaffey Union High School District 42.986% 530,528,431 228,052,951
Alta Loma School District 98.807% 54,982,209 54,326,271
Central School District 98.042% 71,496,410 70,096,510
Cucamonga School District Community Facilities District No.97-1 100.000% 4,110,000 4,110,000
Etiwanda School District 68.604% 88,691,760 60,846,095
Etiwanda School District CFD No. 7 25.417% 7,600,000 1,931,692
Etiwanda School District CFD No. 8 64.507% 4,180,000 2,696,393
Etiwanda School District CFD No. 9 69.668% 7,025,000 4,894,177
Etiwanda School District CFD Nos.2004-2, 2007-1, 2018-1 100.000% 21,240,000 21,240,000
Etiwanda School District Rancho Etiwanda Public Facilities
Authority CFD No. 1 100.000% 10,310,000 10,310,000
Fontana Unified School District 0.546% 278,934,841 1,522,984
Upland Unified School District 0.121% 90,918,463 110,011
City of Rancho Cucamonga CFDs 100.000% 60,350,000 60,350,000
City of Rancho Cucamonga 1915 Act Bonds 100.000% 440,000 440,000
Total overlapping tax and assessment debt 1,573,127,114 592,736,859
Direct and Overlapping General Fund Debt
San Bernardino County General Fund Obligations 11.552% 214,095,000 24,732,254
San Bernardino County Pension Obligations 11.552% 180,825,585 20,888,972
San Bernardino County Flood Control District General Fund Obligations 11.552% 51,360,000 5,933,107
Chaffey Community College District General Fund Obligations 22.686% 28,935,000 6,564,194
Cucamonga School District Certificates of Participation 40.228% 4,207,000 1,692,392
Fontana Unified School District Certificates of Participation 0.546% 22,110,000 120,721
West Valley Vector Control District Certificates of Participation 31.510% 2,046,710 644,918
Total gross direct and overlapping general fund debt 503,579,295 60,576,558
Overlapping Tax Increment Debt(Successor Agency) 100.000% 237,460,000 237,460,000
Total overlapping debt $ 2,314,166,409 890,773,417
City direct debt 995,689
Total direct and overlapping debt 3 $ 891,769,106
Notes:
The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value.Applicable
percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of
the City divided by the district's total taxable assessed value.
2 Includes aircraft values. For 2021,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 tax and revenue anticipation notes,enterprise revenue, mortgage revenue, and non-bonded capital lease obligations.
4 Qualified Zone Academy Bonds are included based on principal due at maturity.
Source: California Municipal Statistics, HdL Coren&Cone
206
CITY OF RANCHO CUCAMONGA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 20121
Debt limit $ 1,084,361,716 $ 1,036,588,356 $ 990,714,408 $936,104,692 $890,309,325 $ 851,959,538 $ 811,437,638 $ 758,153,738 $ 735,030,975 $ 399,497,598
Total net debt applicable to limit
Legal debt margin $ 1,084,361,716 $ 1,036,588,356 $ 990,714,408 $ 936,104,692 $ 890,309,325 $ 851,959,538 $ 811,437,638 $ 758,153,738 $ 735,030,975 $ 399,497,598
Total net debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Legal Debt Margin Calculation for Fiscal Year 2020/21:
Net taxable assessed value $28,916,312,421
Debt limit(3.75%of assessed value) 1,084,361,716
Debt applicable to limit:
General obligation bonds
Legal debt margin $ 1,084,361,716
Notes:
The Government Code of the State of California provides for a legal debt limit of 15%of gross assessed valuation. However,this provision was enacted when assessed valuation was based upon 25%of market value.
N Effective with the Fiscal Year 1981-82,each parcel is now assessed at 100%of market value(as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State
4 since this change,the percentages presented in the above computations have been proportionately modified to 3.75%(25%of 15%)for the purpose of this calculation in order to be consistent with the computational effect of
the debt limit at the time of the State's establishment of the limit.
As a result of the dissolution of the Redevelopment Agency on January 31,2012,total assessed value for the City is no longer reduced by the incremental value of the redevelopment project areas.
Source: California Municipal Statistics,HdL Coren&Cone
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
2012 2 51,609 9,520 9,950 2.65
2013 n/a n/a n/a n/a
2014 n/a n/a n/a n/a
2015 n/a n/a n/a n/a
2016 n/a n/a n/a n/a
2017 n/a n/a n/a n/a
2018 n/a n/a n/a n/a
2019 n/a n/a n/a n/a
2020 n/a n/a n/a n/a
2021 n/a n/a n/a n/a
Note: Details regarding the City's outstanding debt can be found in the
notes to financial statements.
Tax increment figures are net of related pass-through payments.
As a result of the dissolution of the Redevelopment Agency on January 31,
2012 indebtedness was transferred to the Successor Agency.
208
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)
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%
2019 175,522 5,982,230 34,082 2.9%
2020 175,131 6,320,248 36,088 7.7%
Sources: (1) California State Department of Finance
(2) U.S. Census Bureau
(3) California Employment Development Department
209
CITY OF RANCHO CUCAMONGA
Principal Employers
Current Year and Nine Years Ago*
2021 2012
Percent of Percent of
Number of Total Number of Total
Employer Employees, Rank Employment Employees, Rank Employment
Inland Empire Health Plan 2,450 1 2.71% n/a n/a n/a
Chaffey Community College 1,335 2 1.48% 1,300 2 1.85%
Etiwanda School District 1,025 3 1.14% 1,312 1 1.86%
Amphastar Pharmaceutical 880 4 0.97% 999 3 1.42%
Alta Loma School District 660 5 0.73% 880 5 1.11%
Central School District 545 6 0.60% 783 7 0.97%
West Valley Detention Center 520 7 0.58% 509 8 0.95%
City of Rancho Cucamonga 491 8 0.54% 680 4 1.25%
Walmart 375 9 0.42% n/a n/a n/a
Coca-Cola Bottling Co. 354 10 0.39% n/a n/a n/a
Kindred Hospital Rancho 343 11 0.38% n/a n/a n/a
Macy's 335 12 0.37% 750 6 1.07%
Western Liquidators/Big Lots n/a n/a n/a 521 9 0.74%
Mercury Insurance Company n/a n/a n/a 509 10 0.72%
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 'Wa".
Source: ESRI, Infogroup, Economic and Community Development Department
210
CITY OF RANCHO CUCAMONGA
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Function
General government 86 86 88 91 90 93 86 86 85 82
Public safety1,2 157 147 180 175 175 165 159 145 153 153
Engineering and public works 169 171 191 192 204 208 214 193 201 207
Community development 39 38 36 41 42 42 42 46 49 52
Community services 3 87 71 325 366 371 347 348 389 353 346
Redevelopment - - - - - - - - - 3
Total 538 513 820 865 882 855 849 859 841 843
NOTES:
N
Police services are provided by a contract with the San Bernardino County Sheriffs Department which provided 141 sworn and 41 non-sworn employees for 2021.
2 Includes Fire Protection and Animal Center
3 Includes Community Services and Library Services
Source: City Finance Department
CITY OF RANCHO CUCAMONGA
Operating Indicators
by Function
Last Ten Fiscal Years
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
General government:
Building permits issued 4,976 4,196 4,679 4,173 4,061 4,891 5,126 2,989 2,917 2,424
Building inspections conducted 13,422 13,136 14,236 12,897 12,718 17,118 18,326 19,451 20,076 16,452
Police:
Arrests 3,531 3,947 4,762 3,027 4,442 4,968 4,534 4,497 4,617 4,344
Parking citations issued 4,275 2,840 8,693 6,438 6,354 5,151 5,946 5,603 4,806 3,460
Traffic citations issued 9,308 15,050 14,082 9,742 10,881 18,056 18,935 13,569 19,349 16,135
Fire:
Number of emergency calls 16,907 16,545 15,861 16,762 15,670 15,158 14,212 13,674 13,477 12,761
Inspections 4,308 5,080 4,071 2,277 2,294 2,162 1,758 2,206 2,501 2,558
Public works:
Number of potholes repaired 3,419 4,866 5,784 3,060 3,701 3,423 3,284 2,030 2,606 3,250
N Parks and recreation:
N Number of recreation classes 422 2,684 2,483 5,350 5,055 6,048 6,865 6,688 8,321 8,301
Number of program registrations 3,577 27,763 33,511 24,278 25,912 30,648 35,477 41,807 42,196 37,564
Number of facility rentals 353 2,241 4,100 3,980 2,703 2,069 2,424 1,536 1,385 2,325
Library:
Volumes in collection 259,622 226,580 274,993 300,462 295,619 302,689 314,390 310,896 301,939 298,985
Total volumes borrowed 326,345 754,690 987,448 898,037 985,474 1,085,020 1,067,070 1,069,335 1,107,211 1,163,021
Municipal utility:
Number of customers 2,126 1,744 1,247 945 899 896 887 686 510 488
Peak demand (MW) 19 18 18 18 17 17 17 17 16 18
Notes:
Effective Fiscal Year 2015, building permits are segregated into more detailed subcategories resulting in a higher total count than prior years.
Source:Various City departments
CITY OF RANCHO CUCAMONGA
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 63 67 67 65 65 63 63 60 58 58
Fire:
Fire stations 7 7 7 7 7 7 7 7 7 7
Public works:
Streets(miles) 537 537 533 532 532 532 531 524 523 523
Streetlights 17,019 17,027 16,950 16,721 16,792 16,744 16,669 16,334 16,262 16,085
Traffic signals 238 238 238 235 226 224 222 220 219 213
Parks and recreation:
Parks 30 30 30 30 30 29 29 29 29 29
Acreage 346 346 346 346 346 343 343 343 343 343
N Community centers 6 6 6 6 6 6 6 6 6 6
w
Source: Various City departments