Loading...
HomeMy WebLinkAbout2021/06/30 Comprehensive Annual Financial Report zow /i�'i, ETA N --- - CLM M - � V ZWz W W ` Emma Quj a_ cor W _ O ,k• .r Q N r � Z � Z 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 THIS PAGE INTENTIONALLY LEFT BLANK 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 Page 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 TABLE OF CONTENTS Page Number 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 THIS PAGE INTENTIONALLY LEFT BLANK Mayor L.Dennis Michael I Mayor Pro Tern Lynne B.Kennedy Council Members William J.Alexander,Sam Spagnolo,Diane Williams City 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. i GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of an MD&A. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City'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. H 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 Hi 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. iv 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. v 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. vi 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 vii • 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. viii 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: ix • 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. x • 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. A 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. xii 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. xiii 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. xiv 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. xv 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. xvi 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. xvii 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. xviii 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 THIS PAGE INTENTIONALLY LEFT BLANK LSU19 !// //• // 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 LidevrnJr[Ar.unet ii9 Fvm 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. 0��, -9,-44al C�o4 Brea, California December 10, 2021 3 THIS PAGE INTENTIONALLY LEFT BLANK 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 THIS PAGE INTENTIONALLY LEFT BLANK 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 THIS PAGE INTENTIONALLY LEFT BLANK 30 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30,2021 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 THIS PAGE INTENTIONALLY LEFT BLANK 98 REQUIRED SUPPLEMENTARY INFORMATION 99 THIS PAGE INTENTIONALLY LEFT BLANK 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 117 THIS PAGE INTENTIONALLY LEFT BLANK 118 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 THIS PAGE INTENTIONALLY LEFT BLANK 131 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2021 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 THIS PAGE INTENTIONALLY LEFT BLANK 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) 181 THIS PAGE INTENTIONALLY LEFT BLANK 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. 188 THIS PAGE INTENTIONALLY LEFT BLANK 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. 190 THIS PAGE INTENTIONALLY LEFT BLANK 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 THIS PAGE INTENTIONALLY LEFT BLANK 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