Agenda packet — Colton City Council, February 1, 2022 (part 1 of 8)

1 CITY OF COLTON
City Hall, Council Chambers
650 N. La Cadena Drive
Colton, CA 92324
Website: www.coltonca.gov

Mayor Frank J. Navarro
Council Members:

David J. Toro - District 1
Ernest R. Cisneros - District 2
Kenneth J. Koperski - District 3
Dr. Luis S. Gonzalez - District 4
John R. Echevarria - District 5
Isaac T. Suchil - District 6
City Treasurer Aurelio De La Torre
City Manager William R. Smith
City Attorney Carlos Campos
City Clerk Carolina R. Padilla
AGENDA

CITY COUNCIL,

COLTON UTILITY AUTHORITY, COLTON PUBLIC FINANCING AUTHORITY,

COLTON HOUSING AUTHORITY

REGULAR MEETING
TUESDAY, FEBRUARY 1, 2022 – 5:00 P.M.

CITY HALL, COUNCIL CHAMBERS
CLOSED SESSION - 5:00 p.m.

CLOSED SESSION CALLED TO ORDER

ROLL CALL
PUBLIC COMMENT Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding Consent Calendar items; however, any matter that requires action will be referred to staff for investigation and report at a subsequent Council meeting. The Council is prohibited by law from discussing or taking immediate action on items during this public comment period.

Persons desiring to submit paperwork to the City Council Members shall provide copy of any paperwork to the City Clerk for the Official Record.

Speakers will be limited to 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure. 2 A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Pursuant to Government Code Section 54956.9(d)(1)
Modern Pacific Homes LLC v. City of Colton, et al.,
San Bernardino Superior Court, Case No. CIVSB2120518
B. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives:

Tom Cody, Human Resources Director
Employee Groups: IBEW Electric
Colton Police Management Association
Colton Firefighters Association
Colton Police Officers Association

CITY ATTORNEY ORAL REPORT ON CLOSED SESSION ACTIONS

RULES OF DECORUM
To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order, as provided for in the City Council Manual of Procedure. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public. Generally, the City's rules of decorum prohibit comments or actions which willfully disrupt the meeting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first obtaining permission from the Presiding Officer. The City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.

OPEN SESSION
6:00 P.M.

OPEN SESSION CALLED TO ORDER
INVOCATION Pastor Dane Aaker- Centerpoint Church

FLAG SALUTE

ROLL CALL

CEREMONIAL MATTERS
Presentations, Awards, Proclamations
 Introduction of New Fire Safety Specialist- Rick McBride

MAYOR AND COUNCIL ITEMS
3 GIFT DISCLOSURES
Prior to rendering a decision in any proceeding involving a license, permit, contract or other entitlement pending before the city council, any council member who has received been promised a gift or gifts aggregating $50.00 or more in value within the preceding twelve months from a party or participant in the proceeding shall disclose that fact either orally or in writing during open session. This disclosure shall be made part of the official public record of the proceeding, either as part of the minutes of the meeting or as a separate writing filed with the city. (CMC Section 2.04.030) AB 1234 ORAL REPORTS
Members of the city council shall provide brief reports on meetings attended at the expense of the city. (GC Section 53232.3(d))

APPOINTMENTS

MAYOR AND COUNCIL DISCUSSION ITEMS

PUBLIC HEARINGS
To speak on public hearing items, it is requested that you obtain a card from the City Clerk and complete it by noting the agenda item number, as well as whether you are in favor, opposition or neither, and give it to the City Clerk. The applicant will be allowed 5 minutes to address the Council and all other persons will be allowed 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure. (1) Redistricting - Public Hearing #3 - TIME AND PLACE FIXED TO CONSIDER A THIRD PUBLIC HEARING TO

RECEIVE A REPORT FROM STAFF ON THE CONTINUED REDISTRICTING PROCESS AND TO REVIEW DRAFT UPDATED ELECTORAL DISTRICT MAPS.
[Staff Person: Bill Smith]
Mayor announces the Public Hearing Open.

City Clerk submits the Affidavit of Publication and reports on protests or objections thereto.

Staff Presentation.

Public Comment.

After hearing public comment, on motion by Councilmember __________, seconded by Councilmember _________, the Public Hearing is terminated.

MOTION __________ SECOND __________

BUSINESS ITEMS
(2) FY2020-21 ACFR and Related Reports - Receive and File the FY2020-21 Annual Comprehensive Annual Financial Report (ACFR) and Related Reports.
[Staff Person: Stacey Dabbs]
(3) FY2021-22 Mid-Year Budget Review - Approve and Adopt Resolutions for FY2021-22 Mid-Year Budget Review, RESOLUTION NO. R-10-22, CUA-01-22, and CHA-01-22. [Staff Person: Stacey Dabbs]
4 PUBLIC COMMENT Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding Consent Calendar items; however, any matter that requires action will be referred to staff for investigation and report at a subsequent Council meeting. The Council is prohibited by law from discussing or taking immediate action on items during this public comment period.

Persons desiring to submit paperwork to the City Council Members shall provide copy of any paperwork to the City Clerk for the Official Record.

Speakers will be limited to 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the City Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council votes on the motion, unless councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.

(4) Minutes - Approval of Minutes for the City Council Regular Meeting Held on January 18, 2022, on file in the Office of the City Clerk.
[Staff Person: Carolina Padilla]
(5) City Treasurer's Report - Receive and File City Treasurer's Report for October and November 2021. [Staff Person: Aurelio De La Torre]
(6) Warrants - Approve US Bank voucher dated 12/29/2021 and totaling $61,954.27; wires dated 01/06/2022 and totaling $5,199,596.53; voucher numbers 196669 to 196743 dated 01/06/2022 and totaling $764,313.11; voucher numbers 196744 to 196873 dated 01/13/2022 and totaling $370,406.80; and payroll disbursement listing dated 11/27/2021 to 12/10/2021 and totaling $898,658.32. [Staff Person: Stacey Dabbs]
(7) CEQA - Barton Road Bridge Removal and Road Construction Project - Adoption of CEQA-IS/MND for Barton Road Bridge Removal and Road Construction Project.
[Staff Person: Brian Dickinson]
(8) Essential Worker Pay (ARPA) - Part-Time Employees - Approve and Adopt a Resolution to Approve American Rescue Plan Act (ARPA) Essential Worker Pay for City of Colton Part-Time Employees, RESOLUTION NO R-05-22.
[Staff Person: Tom Cody]
(9) Grant - California Department of Aging - Approve and Adopt a Resolution to authorize the execution of an agreement for grant funding through the California Department of Aging, RESOLUTION NO. R-07-22. [Staff Person: Deb Farrar]
(10) Set Public Hearing - CDBG 2022-2023 Projects - Set a Public Hearing for the City Council Meeting of February 15, 2022 for CDBG 2022 - 2023 Projects.
[Staff Person: Arthur Morgan]
(11) Second Reading of Ordinance No. O-03-22 - Waive Full Reading, and Approve Second Reading of an Ordinance of the City Council of the City of Colton, Approving The Barton Road Logistics Center Development Agreement For Property Generally Located At 21700 Barton Road And 275, 280 And 375 De Berry Street In The City Of Colton, ORDINANCE NO. O-03-22. [Staff Person: Mark Tomich]
5 (12) Tolling Agreement Extension - Roque Ranch Entitlements - Approve Tolling Agreement Extension between City of Colton, Sunmeadows LLC and the Colton Coalition (Cadena Creek Mobile Home Park). [Staff Person: Bill Smith]

MAYOR AND COUNCIL ORAL REPORTS AND COMMENTS
Comments from Mayor and Council on various issues and activities throughout the community.

CITY MANAGER'S REPORTS

ADJOURNMENT
6 I, Stephanie Vargas, the Administrative Assistant to the City Clerk Office, hereby certify that a true and correct, accurate copy of the foregoing agenda was posted , at least seventy-two (72) hours prior to the meeting per Government Code 54954.2, at the following locations:

City of Colton City Hall 650 N. La Cadena Drive
City of Colton Website, www.coltonca.gov <http://www.coltonca.gov>

PROCEDURES FOR ADDRESSING CITY COUNCIL
For the Official Record, it is requested that you obtain a card from the City Clerk and complete it by noting a specific item number on the Agenda, if applicable, or you can identify the subject that you wish to address under the Public Comment portion of the Agenda. The City Council encourages public input on all City issues within the Rules of Decorum. Speakers will be limited to the time periods provided on the Agenda; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.

NOTICE TO PUBLIC
Staff reports or other written documentation relating to each item referred to, on the Agenda, are available for public inspection at the following locations: Office of the City Clerk, 650 N. La Cadena Drive, Colton, CA; City of Colton Public Library, 656 9th St., Colton, CA; or the City of Colton Internet Website, www.coltonca.gov. Any person having questions concerning any item on the Agenda may call the City Clerk at 370-5191 to make inquiry concerning the nature of the item described on the Agenda. The City Clerk shall direct inquiries to the appropriate office.

All matters listed under the Consent Calendar are considered by the City Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council votes on the motion, unless councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action. 7 In compliance with the American with Disabilities Act, if you need special assistance to participate in a City Meeting, please contact the City Clerk’s Office at 909-370-5001. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

LEGAL CHALLENGES

If you challenge in court any discussion or action taken concerning an item on this Agenda, you may be limited to raising only those issues you or someone else raised during the meeting or in written correspondence delivered to the City at or prior to the City's consideration of the item at the meeting.

MANUAL OF PROCEDURE
The City Council adopted its Manual of Procedure pursuant to Resolution No. R-150-07; Amended by Minute Action on December 2, 2014 and adopted by Resolution No. R-03-15 on January 20, 2015. Copies are available in the Office of the City Clerk.

ITEM NO. 1

STAFF REPORT
DATE: FEBRUARY 1, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: BILL SMITH, CITY MANAGER
SUBJECT: TIME AND PLACE FIXED TO CONSIDER A THIRD PUBLIC

HEARING TO RECEIVE A REPORT FROM STAFF ON THE

CONTINUED REDISTRICTING PROCESS AND TO REVIEW DRAFT
UPDATED ELECTORAL DISTRICT MAPS.

RECOMMENDED ACTION
Staff recommends that the City Council take the following action:

1. Receive a report from staff and the City’s redistricting consultant on the continued redistricting process and review draft maps.

2. Conduct a public hearing to review draft maps and receive public input on district boundaries.

BACKGROUND
Pursuant to Elections Code sections 21601 et. seq., cities with by-district election systems are required to review their district boundary maps to ensure compliance with the California and Federal Voting Rights Acts. The process to complete redistricting requires a minimum of four public hearings and dedicated public outreach to ensure minority populations and communities of interest are aware of the redistricting effort and are provided with options to participate.

ISSUES/ANALYSIS
Every 10 years, cities with by-district election systems must use new census data to review and, if needed, redraw district lines to reflect how local populations have changed. This process, called redistricting, ensures all districts have substantially equal population. The redistricting process for the City of Colton must be completed by April 17, 2022. The first of four scheduled

1.1 Packet Pg. 8
Staff Report to the Mayor and City Council
Redistricting - Public Hearing #3
February 1, 2022

Page 2 ends

public hearings was held on November 16, 2021, and provided an overview of the redistricting process. The City’s second public hearing was held on January 4, 2022. This is the third required public hearing in the redistricting process.

In November 2018, the voters in the City adopted Measure R, which reduced the number of districts from 6 to 4, beginning with the 2022 election. A map identifying the district boundaries was included with the text of the Measure. However, the Measure did provide that the districts may be adjusted from time to time as required by law and with each subsequent decennial census. At this time, the districts must now be reviewed using the 2020 census data and in compliance with the FAIR MAPS Act, which was adopted by the California legislature as AB 849 and took effect January 1, 2020. The map approved by the electorate as part of Measure R was used as a starting point to review and redraw the City’s four districts using the 2020 census data to achieve population balance, the key requirement under both the FAIR MAPS Act and the Federal Voting Rights Act.

As noted at the previous public hearings, currently, the four district map approved with Measure R exhibits an 11.95% deviation between the least populated and greatest populated districts when 2020 Census data is incorporated into it. The data indicates that the chief cause of this deviation is District 4, where there is an 8.01% excess in total population over equal. District 2 is the district that goes most in the other direction – a 3.94% deficit in total population under equal. “Substantially equal in population” is defined by the U.S. Supreme Court as being within a 10% or less deviation. As such, the four district map approved with Measure R must be redrawn to achieve population balance; in particular to reduce the total population of District 4.

Incorporating the 2020 Census data, the City’s redistricting consultant prepared two initial map options for the Council’s and public’s consideration.

Map Option 1
Map 1 begins with a simple population rebalance, to reduce the total deviation to an acceptable level. Closely resembling the current Council district boundary map, as approved by voters with Measure R, this map primarily reduces population in District 4 and distributes it relatively evenly throughout the remaining three districts. The map reflects an acceptable total deviation of

1.22%. Based upon the citizens of voting age population (CVAP) metric, all four districts are majority/minority Hispanic voting districts, meaning that Hispanic voters makeup the single largest citizen voting age population. Complete demographic analysis of the census data for Map Option 1 is attached to this report.

1.1 Packet Pg. 9
Staff Report to the Mayor and City Council
Redistricting - Public Hearing #3
February 1, 2022

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Map Option 1 is depicted here:

Map Option 2
Map Option 2 also focuses on population rebalance, however it more dramatically changes the district configurations. The population shift between Districts 2, 3 and 4 is the same as with Map Option 1. However, more population is shifted between Districts 1 and 2. Through this, the map achieves a total deviation of less than 1%, at .52%, or near equal population balance. As with Map Option 1, this map draws all four districts with majority/minority Hispanic voter representation. Complete demographic analysis of the census data for Map Option 2 is attached to this report
Map Option 2 is depicted here:

1.1 Packet Pg. 10
Staff Report to the Mayor and City Council
Redistricting - Public Hearing #3
February 1, 2022

Page 4 ends

Both map options are population balanced, relatively compact, contiguous, and respect various communities of interest.

Also at the second public hearing, a map was submitted by Councilmember Suchil for consideration. The City’s redistricting consultant has analyzed that map, and found that it does not meet the requirements for ae Council boundary map. The map exhibits a deviation of

20.94% and creates contiguity and compactness issues along the boundary of proposed Districts 1 and 3 that would be prohibited under the Fair Maps Act.

Subsequent to the second Public Hearing, the City’s consultant also prepared a third map option, based on Map Option 2, that sought to limit the number of voters being moved between Districts 1 and 2 at the northern portion of the City.

Map Option 3 is highlighted below:

1.1 Packet Pg. 11
Staff Report to the Mayor and City Council
Redistricting - Public Hearing #3
February 1, 2022

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Map Option 3 is substantially the same as Option 2, with the exception of two large census tracts on the northern border of Districts 1 and 2. Option 3 places the blocks back into the Districts where they currently fall under the four district plan approved with Measure R. It exhibits a deviation of 4.41%, with all four districts representing majority/minority Hispanic voting districts. Complete demographic analysis is attached to this report.

At this hearing, the Council and community is invited to comment on the proposed maps and/or suggest revisions.

Further, an online mapping tool for the public has been launched, and is available at the City’s dedicated redistricting website, www.mapcolton.org. In addition, there is an online Google Map tool to allow greater visibility and zoom capabilities when examining the draft maps.

The Google Map tool may be accessed at:
https://www.google.com/maps/d/u/0/viewer?mid=1yGLjqa79elL3Tkx3rM124bwTc2rXbPuH&ll =34.057185442999625%2C-117.320827&z=13 or through a link on the mapcolton.org website.

1.1 Packet Pg. 12
Staff Report to the Mayor and City Council
Redistricting - Public Hearing #3
February 1, 2022

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The public is invited to draft and submit their own maps, which will subsequently be evaluated for compliance with the FAIR MAPS Act and the Federal Voting Rights Act prior to the third public hearing.

NEXT STEPS
Public Hearing 4 is scheduled for March 1, 2022. At this time, if directed by the City Council, the City’s consultant will prepare revised maps for consideration at the fourth public hearing.

Additional public hearings may be scheduled as needed to select and approve the final map.

However if at this time the Council reaches consensus and selects a preferred map, staff will bring back a proposed ordinance for introduction at the fourth public hearing. As referenced above, the legal deadline to adopt the final map is April 17, 2022.

FINANCIAL IMPACT
There is no fiscal impact associated with the recommended action.

ATTACHMENTS
Draft Map Options with Demographic Analysis

ATTACHMENT

1. Colton Maps and Demographic Analysis-c1

1.1 Packet Pg. 13
Attachment
Map Options and Demographic Analysis
Map Option 1
District
Total
Population
Raw
Deviation % Deviation
CVAP*19
Total
CVAP19 NL**
White
CVAP19 NL
Black
CVAP
Hispanic
CVAP19 Not
Hispanic
CVAP19 NL
AIAN***
CVAP19 NL
ASIAN
CVAP19
NL
Hawaiian
CVAP19 NL
Other
1 13,446 -86 -0.64% 9,083 1,765 850 5,916 3,172 18 308 2 67 2 13,611 79 0.58% 7,645 1,107 313 6,157 1,538 - 117 - 1 3 13,548 16 0.12% 8,297 1,728 516 5,697 2,577 104 229 27 12 4 13,524 -8 -0.06% 9,035 3,193 1,213 3,337 5,694 23 1,079 - 29 Total Population 54,129
Ideal Population 13,532
Deviation 1.22%
*CVAP = Citizen Voting Age Population
**NL = Non-Latino
***AIAN = American Indian Alaskan Native

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Packet Pg. 14
Attachment: Colton Maps and Demographic Analysis-c1 (3482 : Redistricting - Public Hearing #3) Map Option 2
District
Total
Population
Raw
Deviation
%
Deviation
CVAP*19
Total
CVAP19
NL** White
CVAP19 NL
Black
CVAP
Hispanic
CVAP19 Not
Hispanic
CVAP19 NL
AIAN***
CVAP19 NL
ASIAN
CVAP19
NL
Hawaiian
CVAP19
NL Other 1 13,564 32 0.23% 8,568 1,641 953 5,379 3,213 17 368 2 67 2 13,493 -39 -0.29% 8,160 1,231 210 6,694 1,497 1 57 - 1 3 13,548 16 0.12% 8,297 1,728 516 5,697 2,577 104 229 27 12 4 13,524 -8 -0.06% 9,035 3,193 1,213 3,337 5,694 23 1,079 - 29 Total Population 54,129
Ideal Population 13,532
Deviation 0.52%
*CVAP = Citizen Voting Age Population
**NL = Non Latino
***AIAN = American Indian Alaskan Native

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Packet Pg. 15
Attachment: Colton Maps and Demographic Analysis-c1 (3482 : Redistricting - Public Hearing #3) Map Option 3
District
Total
Population
Raw
Population
%
Population
CVAP*19
Total
CVAP19
NL**
White
CVAP19
NL Black
CVAP
Hispanic
CVAP19
Not
Hispanic
CVAP19
NL
AIAN***
CVAP19

NL ASIAN
CVAP19
NL
Hawaiian
CVAP19
NL Other 1 13,230 -302 -2.23% 8,947 1,751 850 5,804 3,156 17 308 2 67 2 13,827 295 2.18% 7,781 1,121 313 6,269 1,554 1 117 - 1 3 13,548 16 0.12% 8,297 1,728 516 5,697 2,577 104 229 27 12 4 13,524 -8 -0.06% 9,035 3,193 1,213 3,337 5,694 23 1,079 - 29 Total 54,129
Ideal 13,532
Deviation 4.41%
*CVAP = Citizen Voting Age Population
**NL = Non Latino
***AIAN = American Indian Alaskan Native

1.1.a
Packet Pg. 16
Attachment: Colton Maps and Demographic Analysis-c1 (3482 : Redistricting - Public Hearing #3) ITEM NO. 2

STAFF REPORT
DATE: FEBRUARY 1, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STACEY DABBS, FINANCE DIRECTOR
SUBJECT: RECEIVE AND FILE THE FY2020-21 ANNUAL COMPREHENSIVE ANNUAL FINANCIAL REPORT (ACFR) AND RELATED REPORTS.

RECOMMENDED ACTION
Staff recommends that the City Council take the following action:

1. Receive and file the FY2020-21 Annual Comprehensive Financial Report (ACFR), the GAS Letter, Management Letter, GANN Limit Report, and the Communication with those in charge of governance (exit letter).

2. Authorize the creation of Fiduciary Fund 763 PD Cash Evidence Deposits for FY2020-21 pursuant to an audit recommendation.

BACKGROUND
Currently, the firm of CliftonLarsonAllen, LLP, (“CLA”) performs the annual financial audit of the City of Colton. This audit is required to be performed in accordance with Generally Accepted Accounting Standards and Government Auditing Standards. At the conclusion of the audit test work, the audit firm issues an opinion as to the fairness of presentation of the financial position of City activities. The City of Colton received a “clean” opinion on its basic financial statements. In addition, the audit firm is also required to issue reports related to internal controls, as well as communicate with the Council on certain matters regarding how the audit was planned and conducted. All aforementioned reports are attached with the exception of the Single Audit, which is still in progress and will be forwarded to City Council upon issuance.

ISSUES/ANALYSIS
2 Packet Pg. 17
Staff Report to the Mayor and City Council
FY2020-21 ACFR
February 1, 2022

Page 2 ends

The scope of the annual audit is to compile the City’s Annual Comprehensive Financial Report (ACFR) and the Single Audit, as well as to identify matters that should be addressed by the City in order to strengthen internal controls and ensure accuracy in financial reporting. The audit findings, as well as recommended and proposed corrective actions are discussed in detail in the attached Report on Internal Controls and in the Report on Scope of Audit and Other Matters.

Pursuant to an audit recommendation, staff is recommending City Council additionally approve the creation of a Fiduciary Fund (763) to account separately for the Police Department Cash Evidence Deposits as represented in the ACFR.

FISCAL IMPACTS
There is no fiscal impact associated with this action. The Annual Comprehensive Financial Report represents the City’s audited position for the year ending June 30, 2021. Creation of a separate Fiduciary Fund to account for Police Department Cash Evidence Deposits does not impact the overall financial statements of the City.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. CityofColton_AnnualComprehensiveFinancialReportFY2020-21

2. CityofColton_AuditCommunicationLetter

3. CityofColton_GAS Letter

4. CityofColtonGANNRpt21

5. 2021 Colton Presentation
2 Packet Pg. 18

CITY OF COLTON
ACFR

YEAR ENDING
JUNE 30, 2021

ANNUAL COMPREHENSIVE FINANCIAL REPORT

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMPREHENSIVE FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2021

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

THIS PAGE INTENTIONALLY LEFT BLANK

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
MUNICIPAL OFFICIALS ii
ORGANIZATION CHART iii
GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE iv

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS – Required Supplementary Information 5

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 21
STATEMENT OF ACTIVITIES 22

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 24

RECONCILIATION TO THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION 25

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 26

RECONCILIATION TO THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES 27
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT –
GENERAL FUND 29

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 30

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 32
STATEMENT OF CASH FLOWS 33

FIDUCIARY FUNDS

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
STATEMENT OF NET POSITION 35
STATEMENT OF CHANGES IN NET POSITION 36
NOTES TO FINANCIAL STATEMENTS 38

REQUIRED SUPPLEMENTARY INFORMATION

CALPERS PENSION PLANS
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY – SAFETY PLANS 92
SCHEDULE OF CONTRIBUTIONS – SAFETY PLANS 94
SCHEDULE OF CHANGES IN NET PENSION LIABILITY –
MISCELLANEOUS PLAN 96
SCHEDULE OF CONTRIBUTIONS – MISCELLANEOUS PLAN 98

OTHER POST-EMPLOYMENT BENEFITS PLAN

SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND
RELATED RATIOS 100

SUPPLEMENTARY INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
OTHER GOVERNMENTAL FUNDS 103
COMBINING BALANCE SHEET 106

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 110

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND 114
COMMUNITY CHILD CARE SPECIAL REVENUE FUND 115
LIBRARY GRANT SPECIAL REVENUE FUND 116

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE
FUND 117
STATE TRAFFIC RELIEF SPECIAL REVENUE FUND 118
ASSET SEIZURE SPECIAL REVENUE FUND 119
AIR QUALITY SPECIAL REVENUE FUND 120
DRUG/GANG INTERVENTION SPECIAL REVENUE FUND 121

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
HOST CITY FEES SPECIAL REVENUE FUND 122
STORM WATER SPECIAL REVENUE FUND 123
LOCAL TRANSPORTATION SPECIAL REVENUE FUND 124
NEW FACILITIES SPECIAL REVENUE FUND 125
CIVIC CENTER DEVELOPMENT FEE SPECIAL REVENUE FUND 126
FIRE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND 127
POLICE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND 128 ViTEP SPECIAL REVENUE FUND 129
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 130
HOUSING AUTHORITY SPECIAL REVENUE FUND 131
PUBLIC FINANCING AUTHORITY DEBT SERVICE FUND 132
TAXABLE PENSION FUNDING BONDS DEBT SERVICE FUND 133
CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND 134
DEVELOPMENT FEES CAPITAL PROJECTS FUND 135
COLTON CROSSING CAPITAL PROJECTS FUND 136
INTERNAL SERVICE FUNDS 137
COMBINING STATEMENT OF NET POSITION 138

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION 139
COMBINING STATEMENT OF CASH FLOWS 140
CUSTODIAL FUNDS 141
COMBINING STATEMENT OF FIDUCIARY NET POSITION 142
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 143 PRIVATE-PURPOSE TRUST FUNDS 144
COMBINING STATEMENT OF NET POSITION 145
COMBINING STATEMENT OF CHANGES IN NET POSITION 146

STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION CONTENTS 149

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

FINANCIAL TRENDS
NET POSITION BY COMPONENT 151
CHANGES IN NET POSITION 152
FUND BALANCES OF GOVERNMENTAL FUNDS 155
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 156

REVENUE CAPACITY

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 157
PROPERTY TAX RATES – ALL OVERLAPPING GOVERNMENTS 158
PRINCIPAL PROPERTY TAX PAYERS 159
PROPERTY TAX LEVIES AND COLLECTIONS 160
TAXABLE SALES BY CATEGORY 161
DIRECT AND OVERLAPPING SALES TAX RATES 162
PRINCIPAL SALES TAX REMITTERS – IDENTIFIED BY CATEGORY, TOP 25 163

DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE 164
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 165 LEGAL DEBT MARGIN INFORMATION 166
PLEDGED-REVENUE COVERAGE 167

DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS 168
PRINCIPAL EMPLOYERS – TOP 20 169

OPERATING INFORMATION
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM 170 OPERATING INDICATORS BY FUNCTION/PROGRAM 171
CAPITAL ASSETS BY FUNCTION/PROGRAM 172

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INTRODUCTORY SECTION

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) 650 North La Cadena Drive, Colton California 92324
December 22, 2021
Honorable Mayor and Members of the City Council:

It is a pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Colton for the fiscal year ended June 30, 2021. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. In our opinion, the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City, and contains all disclosures necessary to enable the reader to gain an understanding of the City’s financial affairs.

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management’s representations concerning the finances of the City of Colton, California. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, and misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls have been designed to provide reasonable rather than an absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City’s financial statements have been audited by CliftonLarsonAllen LLP, a public accounting firm fully licensed and qualified to perform audits of the State and local governments within the State of California. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Colton, California, for the fiscal year ended June 30, 2021, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management; and, evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Colton, California’s financial statements for the fiscal year ended June 30, 2021, and are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the particular needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report the fair representation of the financial statements and the audited government’s internal controls and compliance with legal requirements, with particular emphasis on internal controls and legal requirements involving the administration of Federal awards. These reports will be available in the City’s separately issued Single Audit Report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (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 report of the independent auditors in the financial section of the CAFR. (i)

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) Profile of the City of Colton, California
Colton History
The City of Colton was formally founded in 1875 and incorporated on July 11, 1887. However, its history goes back to the 1770s when several explorers searched routes from Sonora, Mexico to Monterey, California, bringing the first Europeans to the Colton area. Prior to this time, the Gua-Chama, Seranno, and San Gorgonio Indians inhabited the area.

By 1840 Colton was part of two privately owned ranchos, Jurupa and San Bernardino. The southwest section of Colton, the area settled by New Mexico pioneers in 1842, is referred to as Agua Mansa (“Gentle Waters”).

The town of Colton was laid out when the Southern Pacific Railway was constructed through the valley on its way eastward from Los Angeles in 1875. Colton was named for Civil War General David Colton, who was also Vice President of the Southern Railroad Company.

Nicholas P. Earp, the father of Wyatt, Virgil, and Morgan (among other children), was elected as Colton’s first City Clerk/Recorder in 1887. After Morgan was killed at the famous gunfight in Tombstone, Arizona, Virgil brought his body to Colton, where he was buried in Hermosa Cemetery. Virgil then lived for a time in the family home with his wife, Allie, which still stands at 528 H Street.

The population of Colton gradually increased from 400 in 1887 to 21,310 by 1980. Since that time, fueled by new residential development, the population has more than doubled to over 53,000 today.

The City of Colton is a general law city that operates under a Council-Manager form of government. The Mayor is separately elected at-large and serves a four-year term. Six elected Council Members are elected by district and serve four-year terms.

Advising the City Council are a number of appointed citizen committees and commissions. Other elected officials include the City Clerk and the City Treasurer.

FACTORS AFFECTING FINANCIAL CONDITION
Local Economy
Navigating through a full year of the COVID-19 pandemic and various variants, the City has continued to take a prudent and proactive approach to ensure the City’s fiscal sustainability while balancing the emerging needs of the community. While the City is sustaining operations, the deferred maintenance and costs of post-employement benefits for pensions and retiree medical continue to require ongoing disciplined management and planning to sustain Colton into the future.

The City has two primary General Fund revenue sources that are acutely sensitive to economic conditions: property tax and sales tax. Interestingly, sales tax and property tax revenues had a record-breaking year, despite initial predictions of the impact of the pandemic. However, it is suspected that the federal government stimulus packages, which include income and rental/mortgage protection, have delayed or curbed the devastating economic effects predicted at the onset of the pandemic. To the extent the public health crisis continues and the target of federal and state relief funds, will determine if future revenues will be significantly impacted.

More than a year following the immediate impacts of the pandemic, the economy continues to operate with many uncertainties.

For the most part, local businesses continue to find ways to operate and thrive. The most significant risks to the City’s economic outlook are generally outside of our control as the country struggles to deal with the public health crisis effectively. Internal factors, such as increasing costs from pension contracts, and external factors, including the global economy’s performance, trade patterns, worforce shortages, and overall geopolitical uncertainty, could actively harm the general economic conditions that underlie the City’s forecast assumptions. The local economy is likely to continue to face many challenges in the coming year given the continued uncertainty surrounding the pandemic and the looming impacts of sharply rising inflation. While general revenues have grown over the past year, escalating inflation will apply pressure to the City’s operating budget and cause postemployment benefit costs to ascend as well.

Although the City of Colton’s financial foundation has improved, the long-term fiscal impact of the COVID-19 pandemic continues to remain unknown. The City’s future economic health and sustainability will be dependent upon maintinaing healthy reserves through fiscally conservative budgets and policies, in addition to aggressively pursuing the right economic development opportunities. The City of Colton has significantly improved its financial position through prudent, long-range policy decisions and sound fiscal management. The City will continue to monitor key economic indicators and will remain ready to adjust revenues and spending levels as part of its sound conservative fiscal approach. (i)

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) Long-Term Financial Planning
The City has adopted conservative budgeting strategies, whereby realistic projections for revenue are matched with estimates of expenditures that attempt to capture all known cost increases. The City’s budget is reviewed by the City Council on a semiannual basis, with specific emphasis on the City’s General Fund. These reviews of the City’s budget provide the opportunity for the City Council to address any budgetary issues that may have arisen during the course of the fiscal year.

At the March 20, 2018, City Council meeting, Finance Department staff presented an informational report on fiscal strategies to maintain City service levels and to address the sunset of Measure D. The report addressed the various challenges affecting the City’s long-term financial sustainability and explored several revenue options to replace Measure D. Additionally, through the FY2017-18 mid-year budget review process, the Finance Committee recommended the inclusion of funding for a consultant to evaluate the City’s options for financial sustainability through revenue measures and expenditure reductions. In an effort to maintain fiscal stability and responsible stewardship, on April 3, 2018, City Council approved a Professional Services Agreement with Urban Futures, Inc. to 1. Establish a ten-year baseline financial forecast model for the General Fund, and 2. Provide a revenue and expenditure analysis, which identifies opportunities for revenue restructuring and/or ballot measure options, as well as an assessment of General Fund expenditure categories. The result of the analysis revealed a significant budget shortfall in the coming years. In November 2018, voters in the City of Colton passed a successor measure, Measure V, to address the findings outlined by staff and the consultant. The City continues to update the 10-year forecast with actuals, economic predictors, and changes in assumptions.

City Leadership continues to work with the Finance Committee and the City Council to address long-term financial strategies to ensure sustainability despite the specific challenges that face the City: rising costs related to annual pension contributions, OPEB liabilities, the pressures of providing new services for emerging issues, such as homelessness, recruitment and retention of a talented and diverse workforce, and strategically planning for future economic hurdles.

Relevant Financial Policies
The City’s accounting records for general government activities are maintained on a modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received, and the liabilities are incurred. Accounting records for the City’s electric, water, and wastewater utilities and other proprietary activities are maintained on an accrual basis.

The annual budget serves as a foundation for the City of Colton’s financial planning and control. The annual budget is prepared each year by the City Manager and the Department Heads and is submitted to City Council for review and approval before the end of the current year. Budget to actual comparisons are provided in this report for the governmental funds.

The Colton City Council is committed to ensuring the fiscal health and long-term sustainability of the City. Amid pension and OPEB costs, on November 7, 2017, City Council adopted Resolution R-91-17, adopting a fund balance reserve policy for the General Fund. Among other things, the policy provided a mechanism to commit surpluses for the City’s pension and OPEB liabilities and transfer to internal services funds for deferred maintenance of the City’s buildings, facilities, and fleet. As of June 30, 2021, this policy has resulted in committed General Fund balances for pension and OPEB of $19,820,872 and $7,793,103, respectively. Continued diligence and City Council support in ensuring the City is capable of addressing its liabilities will result in the positive fiscal health and sustainability of the City for our continued service to our community.

AWARDS AND ACKOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Colton for its comprehensive annual financial report CAFR for the fiscal year ended June 30, 2020. The Certificate of Achievement from the GFOA and the Certificate of Award for Outstanding Financial Reporting from the CSMFO is valid for one year. To be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, the contents of which conform to the program standards. Such report must also satisfy both U.S. GAAP and applicable legal requirements. We believe that our current Annual Comprehensive Financial Report conforms to the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

The successful conclusion of the fiscal year 2020-21 audit would not have been possible without the efficient and dedicated services of the Finance Department staff and staff from various other City departments. We wish to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Finally, City staff truly appreciates the ongoing leadership and support of the City Council. Consistent leadership and support is the foundation for a prosperous and (i)

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) Colton
City of
City Council
Dr. Luis S. González
Frank J. Navarro
Mayor
District 2
Kenneth Koperski
Council Member
District 3
District 4 District 5
Isaac T. Suchil
Council Member
District 6
David J. Toro
Council Member
District 1
Ernest R. Cisneros
Mayor Pro Tem
Council Member
John R. Echevarria
Council Member

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) Citywide Organizational Chart
Colton Citizens
City Council City Clerk City Treasurer
Commissions
City Attorney
/
Committees
Finance Development
Services
Community
Services
Police General
Government
Fire
Operations
Prevention
Disaster
Preparedness
Administration
Patrol
Detective
Code Enforcement
Human Services
Recreation
Library
Childcare
Customer Service
City Manager Staff
City Clerk Staff
Public Works &
Utility Services
Electric
Water
Wastewater
Public Works/
Engineering
Planning
Building
Business License
Finance
Administration
Information
Services
Animal Services Cemetery
Human Resources
Risk Management/
Public Liability
Purchasing/
Warehouse
Economic
Development
Auto Shop/Building
Maintenance
City Manager

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Colton
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

FINANCIAL SECTION

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member‐firm‐disclaimer for details. (1)
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and
Members of the City Council
of the City of Colton
Colton, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business type activities, each major fund and the aggregate remaining fund information of the City of Colton, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express opinions on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the basic financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) Honorable Mayor and
Members of the City Council
of the City of Colton
(2)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business type activities, each major fund and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison information for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the CalPERS pension plans – schedule of proportionate share of the net pension liability and the schedule of contributions – safety plans, the schedule of changes in the net pension liability and related ratios and the schedule of contributions – miscellaneous plan and the other post employment benefit plan – schedule of changes in the total OPEB liability and related ratios, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the RSI 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 RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, the combining and individual fund statements and schedules (supplementary information) and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The supplementary information, as listed in the table of contents, is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole.

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) Honorable Mayor and
Members of the City Council
of the City of Colton
(3)
The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 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.

CliftonLarsonAllen LLP
Irvine, California
December 22, 2021

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(5)
As management of the City of Colton, California (the City) we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City of Colton for the fiscal year ended June 30, 2021. To obtain a complete picture of the City’s financial condition, this document should be read in conjunction with the accompanying letter of transmittal and financial statements.

Financial Highlights
All changes in financial conditions in the following discussion are expressed relative to fiscal year 2019-20. Please note that each of these changes will be discussed in detail in the appropriate sections of this analysis.
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $150,158,788 (net position). The two components of this total are: $8,522,032 in governmental activities and $141,636,756 in business-type activities.
 Overall, the City’s total net position increased by $16,901,264, or 12.7%.  As of the close of the current fiscal year, unassigned fund balance for the general fund was $8,578,560 and balances committed for the City’s pension liability, OPEB liability, and settlement liability total $13,314,508, $6,139,921, and $1,300,000 respectively.  Long-term liabilities related to Governmental Activities increased by $1,814,480 or 4.5%, while long-term liabilities related to Business-type activities decreased $5,327,751, or 9.5%, over the prior year.
 As of the close of the fiscal year, the City’s governmental activities reported combined ending net position of $8,522,032, an increase of $9,257,978 over the prior year.  As of June 30, 2021, total long-term liabilities of the governmental activities and business-type activities include net pension liabilities of $90,631,812 and $21,651,037 respectively, which represents increases of $6,198,656, or 7.3%, and $957,221, or 4.6%, respectively. As of June 30, 2021, total long-term liabilities of the governmental activities and business-type activities include net OPEB liabilities of $36,371,819 and $8,775,423 respectively, which represents increases of $4,236,629, or 13.2%, and $1,022,170, or 13.2%, respectively.

Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements contain three components: government-wide financial statements; fund financial statements; and notes to the basic financial statements.

This report also contains supplementary information in addition to the basic financial statements.

Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private sector business. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

The statement of net position presents information on all City assets deferred outflows of resources, liabilities, and deferred 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 financial position of the City is improving or deteriorating.

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) (6)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
The statement of activities presents information showing how the government’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, some of the revenues and expenses reported in this statement will have no effect on cash until some future fiscal period.

Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover some or all of their costs through user fees and charges (business-type activities).

Governmental Activities. Most of the City’s basic services are reported in this category, including general administration (city manager, city clerk, finance, etc.), police and fire protection, public works and community development. Property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues finance these activities.

Business-Type Activities. The City charges a fee to customers to cover all or most of the cost of certain services it provides. The City’s Electric, Water and Wastewater utilities are reported in this category.

The government-wide financial statements are available on pages 21-23 of this report.

Fund Financial Statements. The fund financial statements provide detailed information about the individual funds, not the City as a whole. A fund is a fiscal and accounting entity with a self-balancing set of accounts that is used to keep track of specific sources of funding and spending for a particular purpose. Certain funds are required by state law and bond covenants. However, additional funds have been established to assist with controlling and managing money for particular purposes or to show that legal responsibilities for using certain taxes, grants, and other resources are being met. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds. Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and year-end balances that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences between the results in the governmental fund financial statements to those in the government-wide financial statements are explained in a reconciliation following each governmental fund financial statement.

In addition to the major funds reported separately on the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances, the City also maintains 18 special revenue funds, 3 capital project funds, and 2 debt service funds. Data from these funds are combined into a single, aggregated presentation referred to as other governmental funds.

Individual fund data for each of these non-major governmental funds is provided in the form of combining statements after the notes section of the report.

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) (7)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
The City adopts an annual appropriated budget for all of its governmental and proprietary funds.

Budgetary comparison statements have been provided for the General Fund to demonstrate compliance with this budget. This comparison is available on page 28 of this report.

The basic governmental fund financial statements are available on pages 24-27 of this report.

Proprietary Funds. When the City charges customers for the services it provides, these services are generally reported in proprietary funds. The City maintains two different types of proprietary funds:
enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Electric, Water, and Wastewater activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for its insurance programs, information services department and facilities/equipment maintenance activities. Because these services predominantly benefit governmental rather than business-type functions, these funds have been included within governmental activities in the government-wide financial statement.

Proprietary funds provide the same type of information as the government-wide financial statements with more detail. The proprietary fund financial statements provide separate information for the Electric, Water and Wastewater operations, all of which are considered major funds of the City. The City’s internal service funds combined are shown separately under the heading Governmental Activities – Internal Service Funds.

The basic proprietary fund financial statements are available on pages 30-34 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support the City’s programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position. Individual fund data for each of these fiduciary funds is provided in the form of combining statements after the notes section of the report. The City currently has two agency funds and two private-purpose trust funds. The Successor Agency of the former Redevelopment Agency (RDA) is accounted for as a private-purpose trust fund.

The basic fiduciary fund financial statements are available on pages 35-36 of this report.

Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the financial statements are available on pages 38-90 of this report.

Required Supplementary Information. Required actuarial valuation schedules and underlying assumptions for Safety and Miscellaneous CalPERS Pension Plans and the schedule of progress for the Other Post-Employment Benefits (OPEB) Plan are contained in this section. Required Supplementary Information is available on pages 92-101 of this report.

Other Information. In addition, the combining statements referred to earlier in connection with nonmajor governmental funds, internal service funds and fiduciary funds are presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules are available on pages 103-146 of this report.

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(8)

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As referenced earlier, net position may serve over time as a useful indicator of a government’s financial position. At the end of the current year, total City assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $150,158,788, an increase of $16,901,264 over the prior year. Of this net increase, governmental activities net position increased by $9,257,978 and businesstype activities increased by $7,976,286. The underlying reasons for major changes in each of these components will be discussed in the following sections.

Governmental Activities
In the case of the City, governmental activities increased the City of Colton’s net position by $9,257,978, a 1,258% increase over the prior year. By far, the largest portion of the City’s net position is its investment in capital assets. Total assets and deferred outflows of resources for governmental activities increased $21,749,304, or 13.2%.

Total assets government-wide increased by $22,474,910 because of increases capital assets and revenues that exceeded expenses. Total revenues decreased by $4,922,273, which is attributed to growth in sales taxes, property taxes, other taxes, and the operating grants and contributions category for general government, which were offset by decreases in charges for services and capital contributions and grants category. The City’s governmental expenses were $1,163,465 higher in comparison to the prior year. Year-over-year increases in Public Safety, Community Services, and Public Works expenses offset reductions in the General Government and Interest on long-term debt categories. The City’s total governmental revenues and transfers of $64,116,618 exceeded governmental expenses of $54,858,640. This $9,257,978 increase in Governmental Activities increased the City’s total net position by 6.9%.
2021 2020 2021 2020 2021 2020
Current and Other Assets $ 83,597,911 $ 67,762,593 $ 117,900,113 $ 109,721,655 $ 201,498,024 $ 177,484,248 Capital Assets 78,311,778 75,209,485 105,985,331 110,626,490 $ 184,297,109 $ 185,835,975 Total Assets 161,909,689 142,972,078 223,885,444 220,348,145 385,795,133 363,320,223 Deferred Outflow of Resources 24,813,143 22,001,450 4,999,580 4,507,890 $ 29,812,723 $ 26,509,340 Long-term Debt Outstanding 169,089,375 156,839,610 81,337,114 84,685,474 250,426,489 241,525,084 Other Liabilities 6,448,721 4,362,524 5,530,408 5,622,957 11,979,129 9,985,481 Total Liabilities 175,538,096 161,202,134 86,867,522 90,308,431 262,405,618 251,510,565 Deferred Inflow of Resources 2,662,704 4,507,340 380,746 554,134 3,043,450 5,061,474 Net Position:

Net Investment in Capital
Assets 68,923,235 65,722,642 67,274,292 68,820,782 136,197,527 134,543,424 Restricted 27,387,272 27,951,561 3,677,027 4,072,437 31,064,299 32,023,998 Unrestricted (87,788,475) (94,410,149) 70,685,437 61,100,251 (17,103,038) (33,309,898) Total Net Position $ 8,522,032 $ (735,946) $ 141,636,756 $ 133,993,470 $ 150,158,788 $ 133,257,524 Governmental Activities Business-Type Activities Government-Wide Totals City of Colton's Net Position
As of June 30

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(9)
The City’s Change in Net Position for Governmental as well as Business-Type activities is illustrated in the following table:
2021 2020 2021 2020 2021 2020
Revenues
Program Revenues:

Charges for Services 9,203,272 $ 9,471,119 $ 88,075,200 $ 84,696,445 $ 97,278,472 $ 94,167,564 $ Operating Contributions and Grants 5,414,145 2,717,641 2,717,641 5,414,145 Capital Contributions and Grants 4,609,335 6,028,770 6,028,770 4,609,335 General Revenues:

Property Taxes 12,666,201 11,416,280 11,416,280 12,666,201 Sales Taxes 13,630,270 10,672,833 10,672,833 13,630,270 Other Taxes 3,703,290 3,008,167 3,008,167 3,703,290
Use of Money and Property 1,728,740 3,115,824 104,236 2,119,913 1,832,976 5,235,737 Other 953,999 556,345 - 2,500 953,999 558,845
Total Revenues 51,909,252 46,986,979 88,179,436 86,818,858 140,088,688 133,805,837 Expenses
General Government 3,571,304 4,231,203 4,231,203 3,571,304 Public Safety 35,333,948 33,887,766 33,887,766 35,333,948 Community Services 7,608,513 7,328,898 7,328,898 7,608,513 Public Works 6,685,834 6,502,500 6,502,500 6,685,834
Interest on long-term debt 1,659,041 1,744,808 1,744,808 1,659,041 Electric 47,901,891 48,765,106 48,765,106 47,901,891
Water 9,725,277 9,898,697 9,898,697 9,725,277
Wastewater 10,104,456 9,664,981 9,664,981 10,104,456
Total Expenses 54,858,640 53,695,175 68,328,784 67,731,624 123,187,424 121,426,799 Increase/(Decrease) in Net
Position Before Transfers (2,949,388) (6,708,196) 19,850,652 19,087,234 16,901,264 12,379,038 Transfers 12,207,366 12,841,494 (12,207,366) (12,841,494) - - Increase/(Decrease) in Net Position 9,257,978 $ 6,133,298 $ 7,643,286 $ 6,245,740 $ 16,901,264 $ 12,379,038 $ Net Position - Beginning of Year, (735,946) $ (6,869,244) $ 133,993,470 $ 127,747,730 $ 133,257,524 $ 120,878,486 $ as restated
Net Position - End of Year 8,522,032 $ (735,946) $ 141,636,756 $ 133,993,470 $ 150,158,788 $ 133,257,524 $ Governmental Activities Business-Type Activities Government-Wide Totals City of Colton's Changes in Net Position
Fiscal Year Ended June 30
The following presents the cost of each of the City’s five largest programs—general government, community services, public works, public safety and interest on long-term debt – as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions.

Function/Program Total Cost of Service Net Cost of Service General Government 3,571,304 $ (1,675,897) $
Public Safety 35,333,948 (30,697,070)
Community Services 7,608,513 (3,561,793)
Public Works 6,685,834 1,961,913
Interest on Long-Term Debt 1,659,041 (1,659,041)
Total Governmental Activities 54,858,640 $ (35,631,888) $ Cost of Governmental Programs

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(10)
Business-Type Activities
The following presents the cost of each of the City’s three utilities – Electric, Water and Wastewater – as well as each utility’s net cost (total cost less revenues generated by the activities). The net cost shows the amount not funded through user charges for these services.

Business-type activities increased the City’s net position by $7,643,286, which represents a 5.7% increase. The major components are as follows:

Electric Utility
The Electric Utility operations net cost of service increased $1,179,882 over the prior year. Operating revenues increased $2,043,097, or 3.3%, with a complementary $863,215, or 1.8%, increase in operating expenses.

Water Utility
In prior years, the Water Fund struggled with the ongoing costs related to the regional battle to remove perchlorate from underground water sources. Additionally, water conservation measures enacted in response to state legislation caused a decline in operating revenues. Effective July 1, 2016, water rate increases approved in Ordinance O-08-16 took effect to address the effects water conservation efforts and the maintenance and operations needs of the utility. Water Utility sales and charges for current services increased $537,987, representing a 4.1% increase. During the fiscal year, Water Utility operating expenses also increased $173,420, or 1.8%.

Wastewater Utility
Operating revenues remained increased by $64,942 or 8.2% over the prior period. Operating expenses decreased by $439,475 or 4.3%.

Type of Business Total Cost of Service Net Cost of Service Electric Utility 48,765,106 $ 15,053,826 $
Water Utility 9,898,697 3,661,489
Wastewater Utility 9,664,981 1,031,101
Total Business-Type Activity 68,328,784 $ 19,746,416 $
Business-Type Activities

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(11)
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
Governmental Funds. The focus of the City’s governmental funds is to provide information on nearterm inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $63,850,135, an increase of $6,133,298 over the prior year. Of this balance, $198,001, or

0.31% is classified as non-spendable for inventory and prepaid costs; $26,736,827 or 41.9% is considered legally restricted fund balance to fund such areas as capital projects, public safety, debt service, and other services; an additional $28,913,975, or 45.3%, represents balances committed by the City Council for pension and OPEB liabilities; and the remaining 12.5%, or $8,001,332, is considered unassigned fund balance.

The City’s General Fund is the only major fund on the balance sheet for governmental funds. All remaining governmental funds are combined into Other Governmental Funds.

The General Fund is the major operating fund of the City. At the end of the current fiscal year, the General Fund’s unassigned fund balance was $8,578,560, or 22.8% of its total fund balance of $37,690,536. Unassigned fund balance serves as a useful measure of a government's net resources available for spending at the end of the fiscal year. Subsequent to June 30, 2017, City Council adopted Resolution R-91-17, a General Fund Balance Policy which seeks to fund unfunded liabilities and other deferred maintenance needs of the City. On February 4, 2020, City Council amended the policy to address liabilities in the Insurances, or Risk Management, Fund. As of June 30, 2021, committed balances for pension and OPEB liabilities are $19,820,872 and $7,793,103 respectively, which represent 21.9% and 21.4% of the net pension and OPEB liabilities for governmental funds respectively. The total General Fund ending fund balance was $11,107,349 more than the previous year’s fund balance. The General Fund’s top three revenue categories for the year, namely property tax, sales tax, and other taxes, saw a combined increase of $4,902,481, or 19.5%, over the prior year.

This is attributed primarily to a significant increase in sales tax, but also increases in both the property tax and other taxes categories.

Revenue Category Amount Percent of Total
Property Tax 12,666,201 $ 29.7%
Sales Tax 13,630,270 32.0%
Other Taxes 3,703,290 8.7%
Licenses and Permits 2,253,754 5.3%
Intergovernmental 3,607,569 8.5%
Charges for Services 2,676,495 6.3%
Use of Money and Property 1,690,028 4.0%
Fines and Forfeitures 351,189 0.8%
Miscellaneous 2,046,808 4.8%
Total General Fund Revenue 42,625,604 $ 100%
Revenue by Source - General Fund

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(12)
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
Electric Water Waste Water
Proprietary Funds
Unrestricted Net Position
As of June 30
2021
2020
2019
2018
2017
2016
Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements but in greater detail by fund.

GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, with the recommendation from the City’s staff, the City Council revised the City budget numerous times in order to adjust for changes in cost and revenue estimates. All amendments that result in a net change in estimated revenue or appropriations in any given fund are approved by City Council. The General Fund grouping schedule, for financial statement presentation purposes, include Refuse Fund accounts.

Budget to Actual
The General Fund original budget projected revenues and appropriations at $45,334,096 and $44,082,887 respectively.

With respect to revenue, projections increased by $3,314,813 throughout the course of the year, mainly during the mid-year budget review process and subsequent actions in response to the global pandemic.

Actual revenues received for the fiscal year exceeded projections by $6,967,637 for a total of $55,616,546 in General Fund revenues. The positive budget variances pertain mostly to an increase in sales tax, property tax, other taxes, intergovernmental, and licenses and permits, which were supplemented with positive variances most other revenue categories and offset by a negative variance in the use of money and property and transfers in categories.

On the expenditure side, the amended appropriations increased the budget by $3,784,983. Although there were a number of changes to the original budget, the largest increases were due to the roll of open purchase orders and approved carryover requests from the prior year as well as other operational adjustments made at mid-year. Actual total expenditures came at $44,509,197, or $3,358,673 underbudget, primarily due to positive variances in almost every category, but specifically in Community Services, Community Development, Police, and Public Works.

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(13)

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2021, was $184,297,109 (net of accumulated depreciation), which represents a decrease of $1,538,866, or -0.8%, over the prior year.

This investment in capital assets includes land, building and system improvements, machinery and equipment, park facilities, roads, highways, streets and bridges.

Governmental Activity
During the year, the Public Works department added the following land and projects to capital assets:
 Asphalt overlay, traffic signal loops, and striping at the following locations (Measure I and SB-1 funded):
 Riverside Ave – Miguel Bustamonte to Agua Mansa
 Santo Antonio Drive – Mt. Vernon to Washington
 C Street – 7th Street to La Cadena Drive
 Fairway Drive – Auto Center Dr. to Crossroads Dr.
 Meridian Avenue – San Bernardino Ave. to Randall Ave.  Pennsylvania Avenue – C St. to Olive St.
 Mt. Vernon Drive – Olive St. to Colton Ave.
 Mt. Vernon Drive – No. of Cooley Drive
 Cooley Drive – Washington St. to Duron St.
 Rancho Drive – F Street to Valley Blvd.
 G Street – 10th Street to Mt. Vernon Ave.
 Other capital improvement projects:
 Stevenson Street and Citywide Sidewalk Improvement Project  Concession Stands Improvement Project at Chavez Park, Lofy Park, Davis Park, McKinley Park, and Veteran’s Park
 Mt. Vernon Ave. – Washington Street Traffic Signal Interconnect Project  Installation of New Traffic Signal at the following intersection: Valley Blvd./Meridian Ave., Mill St./North Pennsylvania Ave., and Laurel Ave./Mt. Vernon Ave.

Engineering
 Completed the design, specifications, bid and/or started construction of the following projects:
 HSIP Cycle 9 Improvement Project to the following crosswalks:

1. Rancho Avenue, at H Street (adjacent to Colton High School)

2. Rancho Avenue, at G Street (adjacent to Colton High School)

3. Rancho Avenue, at F Street (adjacent to Colton High School)

4. Rancho Avenue, at E Street (adjacent to Colton High School)

5. C Street, at 2nd Street (near Colton High School)

6. Laurel Street, at Valencia Drive (adjacent to Colton Middle School)

7. Laurel Street, east of Valencia Drive (adjacent to Colton Middle School)

8. Rancho Avenue, north of Louise Street (near to McKinley Elementary)

9. Johnston Street, at East Evelyn Circle (adjacent to McKinley Elementary)

10. Johnston Street, at Serrano Court (adjacent to McKinley Elementary)

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(14)

11. Bordwell Avenue, at Olive Street (adjacent to Lincoln Elementary)

12. Olive Street, at Highland Avenue (adjacent to Lincoln Elementary)

13. O Street, at 8th Street (near Wilson Elementary)
 CDBG COLT-19-1-03K/0160 – Street Improvements, Alley Reconstruction. Olive to Oak, between 7th and La Cadena; 10th to 11th between B & C; 9th and 10th between B & C St.
 CDBG COLT-19-1-03L/0161 – Sidewalk Replacement along Serrano Court, Michigan St., Gray St., and Terrace Ave., from Johnston to Mill St.  CDBG COLT-19-2-03K/0162 – Street Improvements, 6th Street and Alley Cross Gutter Reconstruction at 7th St..
 Rancho Ave./N Street Intersection Improvement Project.  FY 19/20 Citywide Sidewalk Improvement Project
 Fleming Park Restroom Improvement Project
 FY 20-21 Asphalt Paving Project

1. Cooley Drive (Duron to Valley Way)

2. 9th Street (Valley to C St.)

3. Wildrose Ave. (Valley to Woodpine) and Indigo

4. C St. (La Cadena to Mt. Vernon Ave.)

5. La Cadena (Mt. Vernon Ave. to 9th St.)

6. Cooley Lane (Cooley Drive to Hunts Lane)

7. Sperry Avenue (Fairway to Valley)

8. M Street (7th to La Cadena)

9. Mill Street (Michigan - City Limits west of Ohio)

10. Fairway Drive (Mt. Vernon Ave to Crossroad Drive)

11. Meadow Lane (Old Ranch to South Limit)

12. Rosedale Avenue (Palm to La Loma Avenue)

13. Valley Boulevard (Grand Avenue to Rancho Avenue)

14. Congress Street (8th Street to 7th Street)

15. 7th Street (Congress Street to La Cadena Drive)

16. Rosedale Ave. (La Loma Ave. to Maryknoll) and Cordoba Ave/Litton (1800 SF)

17. Maryknoll Drive - (Graymoor to La Cadena )

18. Olive St. - (Mt. Vernon to Bordwell)

19. Laurel Ave. - (Mt. Vernon toFairview)

20. RV Center Drive - (Washington St to Milano Drive - Mobile Homes)

21. Washington Street - (RV Center to Mt Vernon Ave.)

22. Mojave Dr. (Cahuila to Laurelwood)

23. Laurel Wood St. (Mojave to Barton)

24. Walin St. (Washington to Barton)

25. John Matich Drive (Wild Canyon to Cordillera)

26. Cordillera (North end to Bridge St.) and Bridge Street

27. Canyon Drive (Malibu Ct. Gunnison Way)

28. Gunnison Way (Canyon Drive to Reche Cyn. Road)

29. Hidden Valley Lane (Prado to Canyon Vista)

30. Canyon Vista Dr. (Hidden Valley Ln. to Mesa Dr.) and Bridge Street

31. 8th St.( Congress St. to O St.)

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(15)
 Development – Completed plan check for grading, hydrology, water quality management plan, off/on site improvement for the following projects:
 Tract Map 20296 (27 single family residential at the NW corner of Fogg St. and La Cadena).
 Commercial Condominium at the southeast corner of Hanna and 6th Street.  Senior Assisted Living Housing Project along Fairway Drive.  Multi-tenant Commercial Building along Colton Ave./D Street.  O’Reilly Auto Parts (two locations) along Colton Ave. (Smart and Final site) and along East Washington St.

Business-Type Activity
Electric Department
 Completed Projects
 Replaced 10,000 ft of 750 primary cable
 Replaced 8,500 ft of 4/0 primary cable
 Replaced 5,300 ft of 1/0 primary cable
 Replaced 68 wood poles from 30-55 ft.
 Installed 600 LED Street Lights
 Installed 1,402 Bridge OpenWay meters (1,300 residential, 102 commercial)  Executed an Agreement for the replacement of switchgear equipment damaged by mylar balloons at the North Substation.
 Ongoing/Future Projects
 Wildfire Mitigation Plan capital improvements for the Colton Electric Utility  Continued the work for the design phase for two new 12 kV and one 66 kV transmission lines.
 Colton Solar 1&2 Buyout (in negotiations)
 Physical Security measures
 Colton Solar lease of property assets (in negotiations)  Potential buyout of additional wells at Barnett Reservoir (SCPPA) Water Department
 Completed Projects
 Prado Booster redesign completed
 Replaced ION Exchange resin at Well 24 for both lead and lag vessels  Replaced ION Exchange resin at Domecq for both lead and lag vessels  Ongoing/Future Projects
 Design of the 6MG Rialto 3 Reservoir – Project has not started  Design of Well 31 – In process
 Well abandonments 13, 16, 26, Katz and 3 Sullivan wells. - Awarded bid, in process  Well 31 Construction – Notice to proceed was sent to Contractor (SWC); In process  Well 32 Construction – Went out to bid, and taking to Council to Award Contract to Layne Christensen
 Well 33 Construction – Went out to bid, and taking to Council to Award Contract to Layne Christensen
 La Loma 2 Reservoir Construction – Design completed, pending construction

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(16)
Wastewater Department
 Completed Projects
 Demolition and removal of Unit 1 (1948)
 Demolition and removal of Digester 1 (1948)
 Demolition and removal of Chlorine Contact Tank (1972)  Demolition and removal of Effluent Station (1972)
 Ongoing/Future Projects
 Design of the wastewater treatment plant expansion – In process  Prado Booster Station Remodel – Completed, pending calibration results of new pumps.  Domecq Resin Change Out
 New WRF Building – Admin Building In process
Additional information on the City’s capital assets is available in Note 5 on pages 56-58 of this report. 2021 2020 2021 2020 2021 2020
Land $15,306,911 $15,306,911 $6,269,991 $6,269,991 $21,576,902 $21,576,902 Construction in progress 9,871,801 9,015,402 2,446,078 1,525,892 12,317,879 10,541,294 Intangible Assets 344,000 352,000 344,000 352,000
Structure and
Improvements 11,731,653 12,191,181 15,507,272 17,037,666 27,238,925 29,228,847 Furniture and Equipment 3,773,625 3,081,999 14,675,253 15,111,201 18,448,878 18,193,200 Capacity Rights - - 3,318,188 3,450,915 3,318,188 3,450,915 Infrastructure 37,627,788 35,613,992 63,424,549 66,878,825 101,052,337 102,492,817 Total $ 75,209,485 78,311,778 $ 105,985,331 $ 110,626,490 $ 184,297,109 $ 185,835,975 $ City of Colton's Capital Assets at June 30
(net of depreciation)
Business-Type
Activities Total
Governmental
Activities
Long-Term Debt
Governmental Activities
The City did not enter into any new debt agreements during the fiscal year; however, liabilities for governmental activities rose due to pending litigation. Overall, long-term debt for governmental activities was $42,085,744, an increase of $1,814,480 as compared to the prior year. The primary components of the debt are the Taxable Pension Funding Bonds, Series 2007 with a balance of $21,249,554 Claims and Judgements with an estimated liability of $8,313,364, and the Public Finance Authority Lease Revenue Bonds, 2007 Series B, which has a balance of $8,250,000 as of June 30, 2021.

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(17)
Proprietary Funds
The major components of long-term debt for business-type activities are bonds to finance infrastructure needs of the City’s utilities. Overall, long-term debt for proprietary funds decreased by $5,327,751, or

9.5%, over the prior year. Detailed information related to long-term liabilities may be found in Note 7 to the financial statements.

The City maintains an “A” issuer credit rating (ICR) with a stable outlook with Standard & Poor’s. The underlying rating on the City’s pension funding bonds is an “A” and the underlying rating on the City’s lease revenue bonds issued by the Public Financing Authority is an “A-.“ The Colton Public Financing Authority for the Electric Utility issuances maintains an A3 stable rating with Moody’s.

Additional information on the City’s long-term debt is available in Note 7 on pages 59-67 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City of Colton’s financial condition improved markedly from the very dire outlook forecasted last year. The improvement is mainly due to certain major revenue categories which either did not experience the major adverse impact anticipated from the pandemic, such as sales tax and property tax, or which rebounded more quickly than projected, such as transient occupancy tax revenue. This may be credited to the extraordinary fiscal and monetary responses to the pandemic by the U.S. government and the Federal Reserve, coupled by the City’s unique economic and tax base composition. The U.S. government responded to the crisis by enacting a number of policies to provide fiscal stimulus to the economy and relief to those affected by this global disaster. The Federal Reserve also took a series of substantial monetary stimulus measures to complement the fiscal stimulus. The stimulus measures taken by the Federal Reserve include lowering its benchmark interest rate to 0.00% ‐ 0.25%, directly buying assets like the U.S. Treasury and mortgage‐backed securities. In addition to direct asset purchases, the Fed also set up several new lending programs to support businesses.

Throughout the pandemic, the U.S. government passed several stimulus and relief packages, and two of the relief packages provided direct fiscal funding to the City. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that signed into law on March 27, 2020, appropriated $2.3 trillion for many different efforts including $150 billion in grants to state and local governments. The City received approximately $1.3 million of State and County pass‐through funding in the fiscal year 2020‐21. The American Rescue Plan Act (ARPA), which President Biden signed into law on March 11, 2021, appropriated $1.9 trillion of stimulus and relief proposals with $350 billion of the total funding going to state and local governments. The City has been allocated approximately $14.8 million, to be received over two tranches, with the first tranche of about $7.4 million received in July 2021 and which was recognized as revenue in the fiscal year 2020‐21.
2021 2020 2021 2020 2021 2020
Revenue bonds 8,250,000 $ 8,765,000 $ $47,823,172 $52,216,055 56,073,172 $ 60,981,055 $ Capital lease obligations 396,793 519,565 396,793 519,565 Taxable Pension Bonds 21,249,554 21,962,434 21,249,554 21,962,434 Notes Payable - - 2,493,978 3,345,402 2,493,978 3,345,402 Compensated absences 2,107,349 2,119,504 593,504 676,948 2,700,853 2,796,452 Other long-term liabilities 10,082,048 6,904,761 0 0 10,082,048 6,904,761 Total $ 40,271,264 42,085,744 $ $50,910,654 $56,238,405 92,996,398 $ 96,509,669 $ City of Colton O utstanding Debt at June 30
Business-Type
Activities Total
Governmental
Activities

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(18)
The U.S. economy contracted at a record average annualized rate of 19.2% from its peak in the fourth quarter of 2019 through the second quarter of 2020. The pace of recovery from the pandemic downturn, the deepest going back to 1947, was equally stunning. The gross domestic project (GDP) rebounded at a historic average rate of 18.3% between the second and fourth quarter of 2020. The U.S. economy topped pre‐pandemic level with GDP surging at 6.7% pace for the second quarter 2021.

While growth likely has peaked in the second quarter, economists continue to forecast U.S. growth rate to be higher than average for this year and next. According to Beacon Economics, the U.S. real GDP growth is expected to be at about 6.0% for the fiscal year 2021‐22 and the unemployment rate to be lowered to 4.4%.

Like many cities in the Inland Empire, the COVID-19 pandemic did not leave the depression in revenues originally anticipated at its commencement. Despite projections of the impacts of the stay-athome orders and the switch to remote educations and workforce, the City of Colton’s sales tax exploded throughout the global pandemic. Unprecedented growth in sales tax related to recreational vehicle and bus sales and construction materials were marginally offset with decreases in fuel-related sales tax. Sales tax, traditionally the City’s second or third highest General Fund revenue source, rocketed to the top general revenue source for the City. Additionally, the housing market growth remained robust throughout the pandemic. By the close of Q2 2021, the City of Colton’s average and median single-family residential prices surpassed pre-Great Recession values.

The City’s elected and appointed officials consider many economic factors when recommending and adopting the budget, including national, state, and local economic conditions, trends in housing and business, and the unique needs of the community. The City is committed to strong fiscal and strategic management and economic growth and development to ensure a stable financial future. We are dedicated to lead our community by demonstrating the fiscal health and sustainability of our beloved City. A copy of the City’s 2021-22 budget is accessible in electronic format on the Finance Department’s page of the City’s website (www.coltonca.gov) or by contacting the Finance Department (see below).

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 Colton’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 City’s Finance Department at the City of Colton, 650 North La Cadena Drive, Colton, CA 92324, or visit the Finance Department page on the City’s website at www.coltonca.gov.

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BASIC FINANCIAL STATEMENTS

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CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(21)
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments 75,249,364 $ 85,698,529 $ 160,947,893 $ Receivables:

Accounts 1,243,010 11,631,166 12,874,176
Taxes - 3,055,771 3,055,771
Notes and Loans 9,243 - 9,243
Accrued Interest 44,581 58,273 102,854
Internal Balances (792,336) 792,336 -
Prepaid Items 9,536 562,499 572,035
Prepaid Bond Insurance - 16,000 16,000
Deposits 2,323,911 - 2,323,911
Due from Other Governments 1,723,994 37,873 1,761,867
Due from Successor Agency - - -
Inventories 1,336,087 189,815 1,525,902
Land Held for Resale 84,131 - 84,131
Restricted Assets:

Cash and Investments 210,746 - 210,746
Cash with Fiscal Agent 2,570,056 15,443,439 18,013,495
Intangible Assets - Service Concessionaire Agreement - - - Capital Assets Not Being Depreciated 25,178,712 8,716,069 33,894,781 Capital Assets, Net of Accumulated Depreciation 53,133,066 97,269,262 150,402,328 Total Assets 161,909,689 223,885,444 385,795,133

DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Refunding 45,447 122,052 167,499
Deferred Amount from OPEB 9,177,245 2,214,193 11,391,438 Deferred Amount from Pensions 15,590,451 2,663,335 18,253,786 Total Deferred Outflows of Resources 24,813,143 4,999,580 29,812,723

LIABILITIES
Accounts Payable 2,605,897 3,776,807 6,382,704
Accrued Interest 525,500 571,051 1,096,551
Unearned Revenues 824,358 - 824,358
Deposits Payable 488,537 1,182,550 1,671,087
Due to Other Governments 2,004,429 - 2,004,429
Noncurrent Liabilities:

Due Within One Year 6,382,785 4,622,286 11,005,071
Due in More than One Year 35,702,959 46,288,368 81,991,327 OPEB Liability - Due in More than One Year 36,371,819 8,775,423 45,147,242 Pension Liability - Due in More than One Year 90,631,812 21,651,037 112,282,849 Total Liabilities 175,538,096 86,867,522 262,405,618

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts from OPEB 670,596 161,794 832,390
Deferred Amounts from Pensions 1,992,108 218,952 2,211,060 Total Deferred Inflows of Resources 2,662,704 380,746 3,043,450

NET POSITION (DEFICIT)
Net Investment in Capital Assets 68,923,235 67,274,292 136,197,527 Restricted:

Public Safety 652,905 - 652,905
Capital Projects 22,240,863 - 22,240,863
Debt Service 2,761,977 3,677,027 6,439,004
Education 33,527 - 33,527
Affordable Housing 953,025 - 953,025
Air Quality Projects 744,975 - 744,975
Unrestricted (87,788,475) 70,685,437 (17,103,038)
Total Net Position (Deficit) 8,522,032 $ 141,636,756 $ 150,158,788 $

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CITY OF COLTON, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(22)
Program Revenues
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government 3,571,304 $ 1,371,137 $ 524,270 $ - $ Public Safety 35,333,948 2,346,315 2,290,563 -
Community Services 7,608,513 3,016,454 712,586 317,680
Public Works 6,685,834 2,469,366 1,886,726 4,291,655
Interest on Long-Term Debt 1,659,041 - - -
Total Governmental Activities 54,858,640 9,203,272 5,414,145 4,609,335 Business-Type Activities:

Electric Utility 48,765,106 63,818,932 - -
Water Utility 9,898,697 13,560,186 - -
Waste Water Utility 9,664,981 10,696,082 - -
Total Business-Type Activities 68,328,784 88,075,200 - - Total Primary Government 123,187,424 $ 97,278,472 $ 5,414,145 $ 4,609,335 $

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CITY OF COLTON, CALIFORNIA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(23)
Functions/Programs
Governmental Activities:

General Government
Public Safety
Community Services
Public Works
Interest on Long-Term Debt
Total Governmental Activities
Business-Type Activities:

Electric Utility
Water Utility
Waste Water Utility
Total Business-Type Activities
Total Primary Government
General Revenues:

Taxes:

Property Taxes, Levied for General
Purposes
Transient Occupancy Taxes
Franchise Taxes
Other Taxes
Intergovernmental - State Shared
Sales Taxes
Motor Vehicle In Lieu - Unrestricted
Investment Income
Other
Transfers
Total General Revenues and
Transfers

CHANGE IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
Net (Expenses) Revenue and Changes in Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
$ - (1,675,897) $ (1,675,897) $
- (30,697,070) (30,697,070)
- (3,561,793) (3,561,793)
- 1,961,913 1,961,913
- (1,659,041) (1,659,041)
- (35,631,888) (35,631,888)
15,053,826 - 15,053,826
3,661,489 - 3,661,489
1,031,101 - 1,031,101
19,746,416 - 19,746,416
19,746,416 (35,631,888) (15,885,472)
- 12,666,201 12,666,201
- 1,238,975 1,238,975
- 2,055,723 2,055,723
- 408,592 408,592
- 13,630,270 13,630,270
- 39,692 39,692
104,236 1,728,740 1,832,976
914,307 - 914,307
(12,207,366) 12,207,366 -
(12,103,130) 44,889,866 32,786,736
7,643,286 9,257,978 16,901,264
133,993,470 (735,946) 133,257,524
$ 141,636,756 8,522,032 $ 150,158,788 $

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CITY OF COLTON, CALIFORNIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(24)
Other Total
Governmental Governmental
General Funds Funds
ASSETS
Cash and Investments 37,368,861 $ 24,152,034 $ 61,520,895 $ Receivables:

Accounts 896,898 343,663 1,240,561
Taxes 111,945 2,943,826 3,055,771
Notes and Loans 9,243 - 9,243
Accrued Interest 21,044 16,486 37,530
Prepaid Items 8,186 - 8,186
Due from Other Governments 24,232 1,699,762 1,723,994
Due from Other Funds 218,761 4,140 222,901
Inventories - 189,815 189,815
Land Held for Resale - 84,131 84,131
Restricted Assets:

Cash and Investments 39,279 64,074 103,353
Cash and Investments with Fiscal Agents - 2,570,056 2,570,056 Total Assets 41,720,145 $ 29,046,291 $ 70,766,436 $

LIABILITIES
Accounts Payable 1,536,643 $ 739,521 $ 2,276,164 $
Unearned Revenues - 824,358 824,358
Deposits Payable 488,537 - 488,537
Due to Other Governments 2,004,429 - 2,004,429
Due to Other Funds - 222,901 222,901
Total Liabilities 4,029,609 1,786,780 5,816,389

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - 1,099,912 1,099,912
Total Deferred Inflows of Resources - 1,099,912 1,099,912

FUND BALANCES
Nonspendable:

Prepaid Items 8,186 - 8,186
Inventories 189,815 - 189,815
Restricted:

Public Safety 652,905 - 652,905
Capital Projects 21,590,418 - 21,590,418
Debt Service 2,761,977 - 2,761,977
Education 33,527 - 33,527
Affordable Housing - 953,025 953,025
Air Quality Projects - 744,975 744,975
Committed to:

Pension Obligation 19,820,872 - 19,820,872
OPEB Obligation 7,793,103 - 7,793,103
Settlement Agreement 1,300,000 - 1,300,000
Unassigned 8,578,560 (577,228) 8,001,332
Total Fund Balances 37,690,536 26,159,599 63,850,135
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 41,720,145 $ 29,046,291 $ 70,766,436 $

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CITY OF COLTON, CALIFORNIA

RECONCILIATION TO THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(25)
Fund Balances - Total Governmental Funds 63,850,135 $
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. 77,171,230
Long-term debt and related items, and compensated absences that have not been included in the governmental fund activity:

County Memorandum of Understanding (1,829,298)
Capital Lease Obligations (396,793)
Taxable Pension Funding Bonds, Series 2007 (21,249,554) Lease Revenue Bonds, 2007 Series B (8,250,000)
Deferred Loss on Refunding to be Amortized 45,447
Bond Discount to be Amortized 132,904
Bond Premium to be Amortized (72,290)
Compensated Absences (2,026,774)
Pension related debt applicable to the City governmental activates are not due and payable in the current period and accordingly are not reported as fund liabilities.

Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position as the changes in these amounts affect only the government-wide statements for governmental activities.

Deferred Outflows of Resources 15,590,451
Deferred Inflows of Resources (1,992,108)
Pension Liability (90,631,812)
OPEB-related debt applicable to the City's governmental activities is not due and payable in the current period and accordingly is not reported as fund liabilities.

Deferred outflows of resources and deferred inflows of resources related to OPEB are only reported in the Statement of Net Position, as the changes in these amounts affect only the government-wide statements for governmental activities.

Deferred Outflows of Resources 9,177,245
Deferred Inflows of Resources (670,596)
Net OPEB Liability (36,371,819)
Accrued interest payable for the current portion of interest due on bonds are not reported in the governmental funds. (525,500) 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. 1,099,912 Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the Statement of Net Position. 5,471,252
Net Position of Governmental Activities 8,522,032 $

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CITY OF COLTON, CALIFORNIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(26)
Other Total
Governmental Governmental
General Funds Funds

REVENUES
Taxes 12,666,201 $ 621,607 $ 13,287,808 $
Sales Taxes 13,630,270 - 13,630,270
Other Taxes 3,703,290 - 3,703,290
Licenses and Permits 2,253,754 - 2,253,754
Intergovernmental 3,607,569 7,237,996 10,845,565
Charges for Services 2,676,495 1,546,330 4,222,825
Use of Money and Property 1,690,028 121,734 1,811,762
Fines and Forfeitures 351,189 4,785 355,974
Miscellaneous 2,046,808 217,821 2,264,629
Total Revenues 42,625,604 9,750,273 52,375,877

EXPENDITURES
Current:

General Government 1,951,909 7,788 1,959,697
Public Safety 30,765,462 1,237,376 32,002,838
Community Services 6,395,047 1,084,152 7,479,199
Public Works 2,902,945 1,762,046 4,664,991
Capital Outlay 2,000 4,532,453 4,534,453
Debt Service:

Principal Retirement 122,772 1,585,000 1,707,772
Interest and Fiscal Charges 19,586 1,406,087 1,425,673
Total Expenditures 42,159,721 11,614,902 53,774,623
Excess (Deficiency) of Revenues Over
(Under) Expenditures 465,883 (1,864,629) (1,398,746)

OTHER FINANCING SOURCES (USES)
Transfers In 12,990,942 3,164,589 16,155,531
Transfers Out (2,349,476) (1,538,636) (3,888,112)
Total Other Financing Sources (Uses) 10,641,466 1,625,953 12,267,419 NET CHANGE IN FUND BALANCES (238,676) 11,107,349 10,868,673 Fund Balances - Beginning of Year 26,583,187 26,398,275 52,981,462 FUND BALANCES - END OF YEAR $ 26,159,599 37,690,536 $ 63,850,135 $

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CITY OF COLTON, CALIFORNIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO

THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(27)
Net Change In Fund Balances - Total Governmental Funds 10,868,673 $ 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 cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation and disposals in the current period.

Capital Outlays 5,706,183
Depreciation (2,899,899)
Loss on Disposal of Capital Assets (15,959)
Pension expense reported in the governmental funds includes the annual required contributions.

In the Statement of Activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (3,793,238)
The issuance of long term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance cost, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. These amounts are the net effect of these differences in the treatments of long-term debt and related items.

Debt Issued or Incurred:

Accreted Interest (357,120)
Principal Repayments:

Capital Lease Obligations 122,772
Taxable Pension Funding Bonds, Series 2007 1,070,000
Lease Revenue Bonds, 2007 Series B 515,000
Bond Defeasance Amortization (12,543)
Bond Premium and Discount Amortization (1,735)
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 46,530
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 the governmental funds. 23,988
OPEB expense reported in the governmental funds includes the actual payments contributions.

In the Statement of Activities, OPEB expense includes the change in the net OPEB liability and related change in OPEB amounts for deferred outflows deferred inflows of resources. (1,973,168) 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. (383,693)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The net revenues (expenses) of the internal service fund is reported with governmental activities. 342,187 Change in Net Position of Governmental Activities 9,257,978 $

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CITY OF COLTON, CALIFORNIA

BUDGETARY COMPARISON STATEMENT BY DEPARTMENT

GENERAL FUND
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(29)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 26,583,187 26,583,187 $ 26,583,187 $ - $

RESOURCES (INFLOWS)
Taxes 10,993,000 10,993,000 12,666,201 1,673,201
Sales Taxes 9,080,000 10,163,240 13,630,270 3,467,030
Other Taxes 2,718,880 2,818,880 3,703,290 884,410
Licenses and Permits 1,671,500 1,745,000 2,253,754 508,754 Intergovernmental 1,601,232 3,136,610 3,607,569 470,959 Charges for Services 4,851,403 2,241,058 2,676,495 435,437 Use of Money and Property 1,693,221 1,693,221 1,690,028 (3,193) Fines and Forfeitures 287,000 237,000 351,189 114,189
Miscellaneous 525,000 2,059,368 2,046,808 (12,560)
Transfers In 11,912,860 13,561,532 12,990,942 (570,590) Amounts Available for Appropriations 71,917,283 75,232,096 82,199,733 6,967,637

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Current:

General Government:

City Council 252,046 248,859 202,769 46,090
City Clerk 401,195 392,481 305,587 86,894
City Manager 1,126,176 1,139,713 956,350 183,363
Human Resources 2,217,033 2,373,020 1,962,978 410,042
Financial Services 3,064,332 3,104,005 2,913,737 190,268 City Attorney 717,000 809,710 659,155 150,555
City Treasurer 59,649 61,149 58,753 2,396
Nondepartmental - - 2,011,609 (2,011,609)
Cost Allocation (8,099,861) (8,099,861) (7,119,029) (980,832) Public Safety:

Police 18,018,262 18,450,043 17,501,854 948,189
Fire 12,877,538 13,549,738 13,263,608 286,130
Community Services:

Parks, Recreation, and Family Services 4,476,293 5,130,820 3,370,290 1,760,530 Community Development 3,260,746 4,647,274 3,024,757 1,622,517 Public Works:

Public Services 3,236,214 3,478,510 2,902,945 575,565
Capital Outlay 4,600 5,100 2,000 3,100
Debt Service:

Principal Retirement 118,312 122,778 122,772 6
Interest and Fiscal Charges 24,050 19,584 19,586 (2)
Transfers Out 2,329,302 2,434,947 2,349,476 85,471
Total Charges to Appropriations 44,082,887 47,867,870 44,509,197 3,358,673 BUDGETARY FUND BALANCE - END OF YEAR $ 27,364,226 27,834,396 $ 37,690,536 $ 10,326,310 $

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CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(30)
Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility Total Service Funds
ASSETS
Current Assets:

Cash and Investments 48,920,567 $ 26,086,103 $ 10,691,859 $ 85,698,529 $ 13,728,469 $ Receivables:

Accounts 7,980,297 1,797,969 1,852,900 11,631,166 2,449 Accrued Interest 35,937 15,567 6,769 58,273 7,051
Prepaid Items 4,000 297 558,202 562,499 1,350
Prepaid Bond Insurance - 16,000 - 16,000 -
Deposits 2,323,911 - - 2,323,911 -
Due from Other Governments 110 37,763 - 37,873 -
Inventories 1,196,629 139,458 - 1,336,087 -
Restricted Assets:

Cash and Investments - - - - 107,393
Cash with Fiscal Agent 3,677,027 6,712,784 5,053,628 15,443,439 - Total Current Assets 64,138,478 34,805,941 18,163,358 117,107,777 13,846,712 Noncurrent Assets:

Capital Assets, Not Being Depreciated 3,397,552 4,822,135 496,382 8,716,069 - Capital Assets, Net of Accumulated
Depreciation 41,201,539 21,581,684 34,486,039 97,269,262 1,140,548 Total Noncurrent Assets 44,599,091 26,403,819 34,982,421 105,985,331 1,140,548 Total Assets 108,737,569 61,209,760 53,145,779 223,093,108 14,987,260

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 122,052 - - 122,052 -
Deferred Amount from OPEB 1,281,901 407,878 524,414 2,214,193 - Deferred Amount from Pensions 1,557,676 629,256 476,403 2,663,335 - Total Deferred Outflows of Resources 2,961,629 1,037,134 1,000,817 4,999,580 -

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CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(31)
Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility Total Service Funds

LIABILITIES
Current Liabilities:

Accounts Payable 3,077,211 $ 201,624 $ 497,972 $ 3,776,807 $ 329,733 $ Accrued Interest 264,933 209,706 96,412 571,051 -
Deposits Payable 1,103,416 79,134 - 1,182,550 -
Accrued Compensated Absences 314,590 177,495 101,420 593,505 46,190 Accrued Claims and Judgments - - - - 2,442,420
Bonds and Notes Payable 2,215,000 716,592 1,097,189 4,028,781 - Total Current Liabilities 6,975,150 1,384,551 1,792,993 10,152,694 2,818,343 Noncurrent Liabilities:

Accrued Compensated Absences - - - - 34,385
Accrued Claims and Judgments - - - - 5,870,944
Net OPEB Liability 5,080,508 1,616,525 2,078,390 8,775,423 - Net Pension Liability 12,662,811 5,115,408 3,872,818 21,651,037 - Bonds and Notes Payable 21,149,283 17,943,590 7,195,495 46,288,368 - Total Noncurrent Liabilities 38,892,602 24,675,523 13,146,703 76,714,828 5,905,329 Total Liabilities 45,867,752 26,060,074 14,939,696 86,867,522 8,723,672

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts from Pensions 128,056 51,731 39,165 218,952 - Deferred Amount from OPEB 93,670 29,804 38,320 161,794 - Total Deferred Inflows of Resources 221,726 81,535 77,485 380,746 -

NET POSITION
Net Investment in Capital Assets 21,244,770 14,404,581 31,624,941 67,274,292 1,133,706 Restricted for Debt Service 3,677,027 - - 3,677,027 -
Unrestricted 40,687,923 21,700,704 7,504,474 69,893,101 5,129,882 Total Net Position 65,609,720 $ 36,105,285 $ 39,129,415 $ 140,844,420 6,263,588 $ Prior Years' Accumulated Adjustment to Reflect the
Consolidation of Internal Service Funds Activities
Related to the Enterprise Funds (231,097)
Current Year's Adjustment to Reflect the
Consolidation of Internal Service Funds
Activities Related to the Enterprise Funds 1,023,433
Net Position of Business-Type Activities $ 141,636,756

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CITY OF COLTON, CALIFORNIA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(32)
Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility Total Service Funds

OPERATING REVENUES
Sales and Service Charges 60,414,141 $ 13,257,232 $ 9,378,138 $ 83,049,511 $ 9,287,728 $ Miscellaneous 3,404,791 302,954 1,317,944 5,025,689 31
Total Operating Revenues 63,818,932 13,560,186 10,696,082 88,075,200 9,287,759

OPERATING EXPENSES
Salaries and Benefits 7,063,432 2,392,792 2,571,249 12,027,473 1,282,483 Maintenance and Operations 3,470,765 3,931,084 3,663,617 11,065,466 1,979,490 Generation 2,785,299 - - 2,785,299 -
Purchased Power 27,830,302 - - 27,830,302 -
Contractual Services - - - - 214,509
Claims and Benefits - - - - 4,278,225
Charges from Other Funds 3,466,392 1,033,336 1,984,881 6,484,609 - Depreciation and Amortization Expense 3,613,957 887,368 1,458,228 5,959,553 115,949 Total Operating Expenses 48,230,147 8,244,580 9,677,975 66,152,702 7,870,656 OPERATING INCOME 5,315,606 15,588,785 1,018,107 21,922,498 1,417,103

NONOPERATING REVENUES (EXPENSES)
Interest Revenue 68,719 28,491 7,026 104,236 8,570
Interest Expense (952,366) (658,368) (242,085) (1,852,819) - Other Expenses - (2,000) - (2,000) -
Loss on Disposal of Capital Assets (39,184) (1,305,512) - (1,344,696) - Total Nonoperating Revenues
(Expenses) (922,831) (1,937,389) (235,059) (3,095,279) 8,570 INCOME (LOSS) BEFORE TRANSFERS 3,378,217 14,665,954 783,048 18,827,219 1,425,673 TRANSFERS OUT (116,381) (11,977,281) (113,704) (12,207,366) (60,053) CHANGE IN NET POSITION 3,261,836 2,688,673 669,344 6,619,853 1,365,620 Net Position - Beginning of Year 62,921,047 32,843,449 38,460,071 134,224,567 4,897,968 NET POSITION - END OF YEAR $ 36,105,285 65,609,720 $ 39,129,415 $ 140,844,420 $ 6,263,588 $ Adjustment to Reflect the Consolidation of Internal
Service Fund Activities Related to Enterprise Funds $ 1,023,433 Change in Net Position - Enterprise Funds 6,619,853

CHANGE IN NET POSITION OF BUSINESS-
TYPE ACTIVITIES $ 7,643,286

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CITY OF COLTON, CALIFORNIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(33)
Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility Total Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 63,302,801 $ 13,591,251 $ 10,606,614 $ 87,500,666 $ 9,285,662 $ Cash Paid to Suppliers for Goods and Services (36,082,148) (4,960,360) (5,440,072) (46,482,580) (3,485,883) Cash Paid to Employees for Services (7,159,560) (2,384,428) (2,566,929) (12,110,917) (1,270,643) Net Cash Provided (Used) By
Operating Activities 20,061,093 6,246,463 2,599,613 28,907,169 4,529,136

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Paid to Other Funds (11,977,281) (116,381) (113,704) (12,207,366) (60,053) Loan Repayments Received 166,119 - - 166,119 -
Payments to Other Funds (110) - - (110) -
Net Cash Used by Noncapital
Financing Activities (11,811,272) (116,381) (113,704) (12,041,357) (60,053)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (1,369,463) (909,772) (383,854) (2,663,089) (427,917) Principal Paid on Capital Debt (3,185,000) (693,261) (1,068,223) (4,946,484) - Interest Paid on Capital Debt (1,218,983) (689,315) (260,338) (2,168,636) - Net Cash Used by Capital and
Related Financing Activities (5,773,446) (2,292,348) (1,712,415) (9,778,209) (427,917)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 168,281 55,143 62,298 285,722 20,894
Net Cash Provided by Investing
Activities 168,281 55,143 62,298 285,722 20,894

NET CHANGE IN CASH AND CASH
EQUIVALENTS 3,892,877 2,644,656 835,792 7,373,325 4,062,060 Cash and Cash Equivalents - Beginning of Year 49,952,938 28,906,010 14,909,695 93,768,643 9,773,802

CASH AND CASH EQUIVALENTS - END
OF YEAR $ 32,798,887 52,597,594 $ 15,745,487 $ 101,141,968 $ 13,835,862 $

CASH AND CASH EQUIVALENTS
Current Cash and Investments 48,920,567 $ 26,086,103 $ 10,691,859 $ 85,698,529 $ 13,728,469 $ Restricted Cash and Investments - - - - 107,393
Restricted Cash with Fiscal Agent 3,677,027 6,712,784 5,053,628 15,443,439 - Total Cash and Cash Equivalents 52,597,594 $ 32,798,887 $ 15,745,487 $ 101,141,968 $ 13,835,862 $

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CITY OF COLTON, CALIFORNIA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(34)
Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility Total Service Funds

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)

BY OPERATING ACTIVITIES
Operating Income (Loss) 15,588,785 $ 5,315,606 $ 1,018,107 $ 21,922,498 $ 1,417,103 $ Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:

Depreciation and Amortization Expense 3,613,957 887,368 1,458,228 5,959,553 115,949 Changes in Assets, Deferred Outflows of Resources,
Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease In:

Accounts Receivable (38,938) 26,913 (89,468) (101,493) (2,097) Prepaid Items 5,900 1,703 (198) 7,405 (1,350)
Deposits Receivable (1,048) - - (1,048) -
Inventories (44,520) 10,460 - (34,060) -
Deferred Amounts from OPEB (272,578) (86,730) (111,509) (470,817) Deferred Amounts from Pension (39,622) (16,007) (12,118) (67,747) - Increase (Decrease) In:

Accounts Payable 771,819 (282,773) (45,686) 443,360 (187,861) Unearned Revenue (389,668) - - (389,668) -
Deposits Payable (87,525) 4,152 - (83,373) -
Claims and Judgments - - - - 3,175,552
Compensated Absences (96,128) 8,364 4,320 (83,444) 11,840 Net OPEB Liability 591,783 188,294 242,093 1,022,170 -
Net Pension Liability 559,840 226,159 171,222 957,221 - Deferred Amounts from OPEB (43,590) (13,869) (17,831) (75,290) - Deferred Amounts from Pension (57,374) (23,177) (17,547) (98,098) - Net Cash Provided (Used) by
Operating Activities 20,061,093 $ 6,246,463 $ 2,599,613 $ 28,907,169 $ 4,529,136 $

NONCASH INVESTING, CAPITAL, AND

FINANCING ACTIVITIES
Loss on Disposal of Capital Assets (39,184) $ (1,305,512) $ - $ (1,344,696) $ - $

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CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(35)
Private-Purpose
Trust Custodial
Funds Funds
ASSETS
Cash and Investments 2,963,133 $ 969,180 $
Receivables:

Accounts 28,450 -
Taxes 4,079 -
Accrued Interest 1,831 475
Restricted Assets:

Cash and Investments 336,320 -
Total Assets 3,329,734 973,734

LIABILITIES
Accounts Payable - 18,992
Accrued Interest 204,223 -
Deposits Payable 230,799 -
Due to Other Governments - 37,763
Long-Term Liabilities:

Due in One Year 1,295,000 -
Due in More than One Year 10,423,049 -
Total Liabilities 12,153,071 56,755

NET POSITION
Held in Trust for Endowment 1,035,310 -
Held in Trust for Other Purposes (9,858,647) -
Held in Trust for Other Individuals and Organizations - 916,979 Total Net Position (8,823,337) $ 916,979 $

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CITY OF COLTON, CALIFORNIA

STATEMENT OF CHANGES IN NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(36)
Private-Purpose
Trust Custodial
Funds Funds

ADDITIONS
Contributions 43,240 $ - $
Taxes 1,790,565 520,645
Evidence Deposits - 7,700
Interest and Change in Fair Value of Investments 808 318 Total Additions 1,834,613 528,663

DEDUCTIONS
Administrative Expenses 5,927 524,025
Principal Payment - 23,088
Interest Expense 418,736 8,479
Contributions to Other Governments 522,997 -
Total Deductions 947,660 555,592
CHANGE IN NET POSITION (26,929) 886,953
Net Position - Beginning of Year, As restated (9,710,290) 943,908 NET POSITION - END OF YEAR $ 916,979 (8,823,337) $

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Colton, California (City), have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Description of the Reporting Entity
The City is located in the County of San Bernardino and was incorporated on July 20, 1887, under the general laws of the state of California. The City operates under an elected Council/City Manager form of government. The City’s major operations include police and fire protection, electric, water, sanitation, public works, parks, recreation and certain social services and general administration services. As required by U.S. GAAP, these financial statements present the City and its component units, entities for which the City is considered financially accountable.

A component unit is included in the primary government’s financial statements if the City appoints a voting majority of the component unit’s governing body and (1) it is able to impose its will on the component unit, or (2) there is a potential for the component unit to provide specific financial benefits to, or impose specific financial burdens on, the City.

The component units discussed below are controlled by common governing boards, which are substantively the same as the City’s governing boards. In addition, the component units provide services or other benefits almost entirely to the City, and there is a potential for the component units to impose financial burdens on the City. Therefore, these component units are presented as blended component units for financial reporting purposes. The component units have the same fiscal year end as the City. The blended component units discussed below, although legally separate entities, are in substance part of the government operation and have been combined herein.

A brief description of each component unit follows:

The Colton Public Financing Authority (the Authority) was created by a joint powers agreement, formed for the purpose of issuing bonds in order to finance capital improvement projects. The Authority’s Board of Directors is composed of the seven elected City Council members. The activity of the Authority is recorded in the Public Financing Authority Debt Service Fund. Separate financial statements are not prepared for the Authority.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Reporting Entity (Continued)
The Colton Utility Authority (the Utility Authority) was created on July 18, 2001, pursuant to Joint Powers Law Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code and the MarksRoos Local Bond Pooling Act of 1985. The Utility Authority was formed to provide for the lease, ownership, operation, maintenance, construction and financing of the Water and Wastewater Utility systems. The City Council acts as the governing board of the Utility Authority. The activity of the Utility Authority is recorded in the Water Utility and Wastewater Utility Proprietary Funds. Separate financial statements are not prepared for the Utility Authority.

On September 1, 2000, the Utility Authority entered into an agreement with the City to lease the Water and Wastewater Utilities. As part of the lease agreement, the assets and infrastructure of the Water and Wastewater systems were valued at $44,907,889 and $36,682,260, respectively, and a 5.048% discount rate was established. The lease payments are to be paid by the Utility Authority to the City from the Water and Wastewater Utility Funds in the amount of $870,000 and $570,000 each year, respectively, from surplus utility revenues. In the event that surplus utility revenues exceed these amounts, the Utility Authority is required to prepay a portion of the total lease payments. See Note 7 for disclosure of bond.

The Colton Housing Authority (Housing Authority) was established on March 15, 2011. The Housing Authority was activated pursuant to State Law Section 34240 of the California Health and Safety Code, which allows for every City to establish a housing authority. The Housing Authority is designed to protect local housing funds and programs, provide new revenue opportunities for affordable housing programs, serve the public interest, promote public safety and welfare and ensure decent, safe, sanitary and affordable housing accommodations to persons of low income. The City Council of the City serves as the Housing Authority’s Commissioners and has operational responsibility for the component unit. The activity of the Housing Authority is recorded in the Housing Authority Special Revenue Fund. Separate financial statements are not prepared for the Housing 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. For the most part, the effect of interfund activity has been removed from these statements. 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.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Likewise, the primary government (including its blended component units) is reported separately from discretely presented component units for which the primary government is financially accountable. The City has no discretely presented component units. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business type activities, which are presented as internal balances and are eliminated in the total primary government column. In the statement of activities, interfund services have been eliminated; however, those transactions between governmental and business type activities have not been eliminated.

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.

The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate.

Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Separate financial statements for the City’s governmental, proprietary and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and other governmental funds in the aggregate for governmental funds. Fiduciary fund statements, even though excluded from the government-wide financial statements, include financial information for privatepurpose trust funds and custodial funds.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured, such as current financial resources or economic resources.

The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
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. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statements of net position. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, 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.

The City’s fiduciary fund financial statements report custodial funds and private purpose trust funds. Fiduciary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets, current liabilities and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Under 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. 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, claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental fund:
 General Fund is used to account for sources and uses of financial resources applicable to the general government operation of the City. All general operating revenues and expenditures that are not restricted or accounted for in another fund are recorded in the General Fund.

The City reports the following major proprietary funds:
 The Electric Utility Fund is used to account for the production, distribution and transmission of electric energy to residents and businesses located within the City.
 The Water Utility Fund is used to account for the production and distribution of potable water to residents and businesses located within the City.  The Wastewater Utility Fund is used to account for the operation and maintenance of the water reclamation plant and sewage system.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(43)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Additionally, the City reports the following fund types:

Governmental Fund Types
 Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are restricted to expenditures for special purposes.  Debt Service Funds are used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs other than those being financed by proprietary funds.
 Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major facilities other than those financed by Proprietary, Special Assessment and/or Trust Funds.

Propriety Fund Types
 Internal Service Funds are used by management to charge the cost of building and equipment, maintenance, information services, self-insurance and an automotive shop provided by one department to other departments of the City.

Fiduciary Fund Types
 The Private-Purpose Trust Funds account for the activities of the Cemetery Endowment and the Successor Agency to the Redevelopment Agency for the City of Colton (Successor Agency). The Cemetery Endowment private purpose trust fund holds donations made to the City for the Cemetery, and the Successor Agency private purpose trust fund accounts for the assets and liabilities of the former redevelopment agency and its 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. Custodial funds are used to report fiduciary activities that are not required to be reported in private-purpose trust funds. The City uses the custodial fund to account for various assessment districts for which the City acts as an agent for debt service activity and monies seized by police as evidence.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(44)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. New Accounting Pronouncements
GASB 84
In January 2017, GASB issued Statement No. 84 – Fiduciary Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments.

The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements This Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. Events that compel a government to disburse fiduciary resources occur when a demand for the resources has been made or when no further action, approval, or condition is required to be taken or met by the beneficiary to release the assets. The City adopted this standard in the current fiscal year. Implementation of GASB 84 resulted in the following: (1) reclassification of the previously reported agency fund, which no longer qualifies as a fiduciary fund, to the City’s General Fund (2) reclassification previously reported deposits as custodial funds which resulted in an increase of $943,908 in net position at the beginning of the year.

E. Cash and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short term investments with original maturities of three months or less from the date of acquisition. The City maintains a cash and investment pool that is available for use for all funds. Each fund type’s position in the pool is reported in the financial statements as cash and investments.

Investments are recorded at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments that are not traded on a market, such as investments in external pools, are valued based on the stated fair value represented by the external pool.

F. 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 noncurrent portion of interfund loans).

All trade and property tax receivables are shown net of an allowance for uncollectibles.

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Receivables and Payables (Continued)
Property tax revenue is recognized 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 (not to exceed 60 days), 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 preceding 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 from 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 on August 31.

G. Inventories and Prepaid Items
Inventories of materials and supplies are carried at cost on a moving average basis. The City uses the consumption method of accounting for inventories. 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. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

H. Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets in the financial statements because their use is limited by applicable bond covenants.

I. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the government-wide financial statements. The government 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 two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(46)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Capital Assets (Continued)
Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:

Building and Structures 40 Years
Furniture and Equipment 7 Years
Capacity Rights 55 Years
Intangible 30 Years
Public Domain Infrastructure 50 Years
J. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:
 Deferred loss on refunding, net of accumulated amortization reported in the government wide statement of net position and the proprietary funds financial statements. A deferred loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
 Deferred outflows related to pensions and OPEB equal to employer contributions made after the measurement date of the net pension liability and OPEB liability.  Deferred outflows related to pensions and OPEB for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB through the plans.  Deferred outflows from OPEB resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with OPEB through the plans.
 Deferred outflows related to pensions resulting from the net difference between projected and actual earnings on investments of the pension plan fiduciary net position. These amounts are amortized over five years.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(47)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of net position and the governmental funds balance sheet 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 future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
 Deferred inflows from unavailable revenues, which arise only under a modified accrual basis of accounting, are reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources, which are taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.  Deferred inflows related to pensions resulting from differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
 Deferred inflows from pensions and OPEB resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions and OPEB through the plans.
 Deferred inflows related to pensions for the changes in employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.

K. Land Held for Resale
The Housing Authority acquired property via the Neighborhood Stabilization Program to reduce blight and provide affordable housing to the City’s citizens. These parcels are shown in the Colton Housing Authority Special Revenue Fund. All property is recorded at lower of cost or fair value.

L. Compensated Absences
It is the government’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Normally, an employee cannot accrue more than twice his regular annual entitlement.

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Compensated Absences (Continued)
Sick leave is payable when an employee is unable to work because of illness. Accrued sick leave may be accumulated without limit. Employees resigning in good standing from City service shall receive up to a maximum of 75% of unused sick leave, depending on years of service.

All vacation and sick leave pay are accrued when incurred in the government-wide financial statements and proprietary funds. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The liability is generally liquidated by the General Fund or the proprietary fund in which the liability is recorded.

M. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position for governmental activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight line method. Amortization of bond premiums or discounts is included in interest expense. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, 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.

N. Fund Balance Classification
In the fund financial statements, governmental funds report the following fund balance classification:

Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Fund Balance Classification (Continued)
Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council, and those that remain binding unless removed in the same manner. The formal action that is required to be taken to establish, modify or rescind a fund balance commitment is a City Council resolution. Examples of committed amounts are as follows:

A pension obligation reserve has been established through a resolution approved by the City Council. This reserve is calculated as 50% of the annual excess revenue over expenditures in the General Fund operating expenditures. This reserve has a balance of $19,820,872 as of June 30, 2021.

An OPEB obligation reserve has been established through a resolution approved by the City Council. This reserve is calculated as 25% of the annual excess revenue over expenditures in the General Fund operating expenditures. This reserve has a balance of $7,793,103 as of June 30, 2021.

A settlement agreement obligation reserve has been established through a resolution approved by the City Council. This reserve has a balance of $1,300,000 as of June 30, 2021.

Assigned includes amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The City Manager and/or Finance Director is authorized to assign amounts to a specific purpose, which was established by the governing body in Resolution 10 11.

Unassigned includes the residual balance for the government’s General Fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City considers restricted funds to have been spent first.

When an expenditure is incurred for which committed, assigned or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the governing board has provided otherwise in its commitment or assignment actions.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Net Position Classification
In the government-wide financial statements and proprietary fund financial statements, net position is reported in three categories:

Net Investment in Capital Assets and Capital Related Payables – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt and capital related payables that is 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 – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” P. Net Position Flow Assumptions
Sometimes the City 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 City’s practice to consider restricted – net position to have been depleted before unrestricted – net position is applied.

Q. Proprietary Funds Operating and Nonoperating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating 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 Electric Utility, Water Utility, Wastewater Utility and internal service funds are charges to customers for sales and services. Operating expenses for proprietary 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 nonoperating revenues and expenses.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

S. Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
General Budget Policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the City Council. Supplemental appropriations, where required during the period, are also approved by the City Council. Intradepartmental budget changes are approved by the City Manager. Expenditures may not exceed appropriations at the department level for the general fund and at the fund level for all other funds. At fiscal year end, all unencumbered operating budget appropriations lapse. During the year, several supplementary appropriations were necessary.

Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General Fund, Special Revenue Fund and similar governmental funds. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at yearend are completed. They do not constitute expenditures or estimated liabilities.

Encumbrances at year-end are reported as restricted, committed or assigned depending on the resources that have been identified to fund the applicable encumbrance.

Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with U.S. GAAP.

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(52)
NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Deficit Fund Balances
The following funds contained deficit fund balances as of June 30, 2021:

Deficit
Amount
Other Governmental Special Revenue Funds:

Gas Tax 12,123 $
Community Child Care 78,641
Community Development Block Grant 265,463
Miscellaneous Grants 221,001
Internal Service Fund:

Insurance 1,518,661
Private-Purpose Trust Fund:

Successor Agency of the Former RDA 882,337
These fund balance deficits will be eliminated as grant reimbursements become available or transfers are made.

NOTE 3 CASH AND INVESTMENTS
Cash and Investments
Cash and investments held by the City at June 30, 2021, are reported in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 160,947,893 $
Restricted:

Cash and Investments 210,746
Cash with Fiscal Agent 18,013,495
Statement of Net Position - Fiduciary Funds:

Cash and Investments 3,932,313
Restricted:

Cash and Investments 336,320
Total Cash and Investments 183,440,767 $
Petty Cash 4,717 $
Deposits with Financial Institutions 3,047,000
Restricted Deposits with Financial Institutions 336,320 Investments 180,052,730
Total Cash and Investments 183,440,767 $

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Banker's Acceptances 180 Days 30% 30%
Negotiable Certificates of Deposit 5 Years 20% None
Commercial Paper 180 Days 25% 10%
State of California Local Agency
Investment Fund (LAIF) N/A None 75,000,000 $
Medium Term Notes 5 Years 30% 10%
Money Market Mutual Funds N/A 20% 10%
United States Treasury Obligations 5 Years None None
United States Government Sponsored
Agency Securities:

Federal Farm Credit Banks (FFCB) 5 Years 40% None
Federal Home Loan Banks (FHLB) 5 Years 40% None
Federal Home Loan Mortgage
Corporation (FHLMC) 5 Years 40% None
Federal National Mortgage
Association (FNMA) 5 Years 40% None
Repurchase Agreements 7 Days None None
N/A - Not Applicable
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. The table below identifies the investment types that are authorized for investments held by a bond trustee.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(54)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements (Continued)
The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Local Obligation Bonds None None None
Banker's Acceptances None None None
Certificates of Deposit 1 Year None None
Commercial Paper 180 Days None None
Money Market Mutual Funds None None None
United States Treasury Obligations None None None
United States Government Sponsored
Agency Securities None None None
Guaranteed Investment Contracts None None None
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flows and liquidity needed for operations. 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:

Remaining Maturity (in Years)
1 Year 1 Year 3 Years
Investment Type or Less to 3 Years to 5 Years Total
LAIF 136,257,220 $ - $ - $ 136,257,220 $
United States Government Sponsored
Agency Securities:

FHLB 9,408,794 - 1,977,620 11,386,414
FFCB - - 994,400 994,400
FHLMC 4,592,745 - - 4,592,745
FNMA 6,058,800 - - 6,058,800
Freddie Mac - - 1,984,840 1,984,840
Money Market Mutual Funds 764,840 - - 764,840
Held by Fiscal Agent:

Money Market Mutual Funds 15,227,312 - - 15,227,312
United States Government
Sponsored Agency Securities:

FHLB 2,786,159 - - 2,786,159
Total 175,095,870 $ - $ 4,956,860 $ 180,052,730 $

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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating by Standard & Poor’s as of fiscal year end for each investment type.

Total as Minimum Ratings as of Fiscal Year End
of June 30, Legal Not
Investment Type 2021 Rating AAA AA+ Rated
LAIF 136,257,220 $ N/A - $ - $ 136,257,220 $
United States Government Sponsored
Agency Securities:

FHLB 11,386,414 N/A - 11,386,414 -
FFCB 994,400 N/A - 994,400 -
FHLMC 4,592,745 N/A - 4,592,745 -
FNMA 6,058,800 N/A - 6,058,800 -
Freddie Mac 1,984,840 N/A - 1,984,840 -
Money Market Mutual Funds 764,840 A - 764,840
Held by Fiscal Agent:

Money Market Mutual Funds 15,227,312 A 15,227,312 - -
United States Government -
Sponsored Agency Securities:

FHLB 2,786,159 N/A - 2,786,159 -
Total 180,052,730 $ 15,227,312 $ 27,803,358 $ 137,022,060 $ Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5% or more of the total City’s investments are as follows:

Amount
Issuer Invested
Federal Home Loan Bank 11,386,414 $

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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
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. 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 Federal Deposit Insurance Corporation. 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 is considered to be held for, and in the name of, the local governmental agency. As of June 30, 2021, all the City’s deposits with financial institutions were covered by federal depository insurance limits or were held in collateralized accounts.

As of June 30, 2021, the City’s investments in the following investment types were held by an agent of the City’s counterparty, not in the name of the City:

Investment Type Amount
Money Market 230,627 $
U.S. Agency Securities 18,014,639
Total 18,245,266 $

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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
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 of California statute. The State Treasurer’s Office audits the fund annually. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by U.S. GAAP. The hierarchy is based on the relative inputs used to measure the fair value of the investments. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are valued using a matrix pricing technique in where investments are valued based on the investments’ relationship to benchmark quoted prices, and Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2021:

Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
United States Government Sponsored
Agency Securities:

FHLB - $ 11,386,414 $ - $ 11,386,414 $
FFCB - 994,400 - 994,400
FHLMC - 4,592,745 - 4,592,745
FNMA - 6,058,800 - 6,058,800
Freddie Mac - 1,984,840 - 1,984,840
Held by Fiscal Agent:

United States Government
Sponsored Agency Securities:

FHLB - 2,786,159 - 2,786,159
Total Leveled Investments - $ 27,803,358 $ - $ 27,803,358 LAIF* 136,257,220
Money Market Mutual Funds* 15,992,152
Total Investment Portfolio $ 180,052,730
* Not subject to fair value measurements.

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NOTES TO FINANCIAL STATEMENTS
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NOTE 4 LONG-TERM RECEIVABLES
Loans and notes receivable consist primarily of loans and advances for development purposes. Included in the Housing Authority are mortgage assistance program loans of $35,564 and other notes receivable of $28,436. The City does not know the timing of the repayment of these loans, and therefore, the City has recorded an allowance for the principal balance of $64,000.

Pursuant to a Disposition and Development Agreement dated July 27, 2012, between the Housing Authority and Eagle Colton 55, LP, the Housing Authority has loaned a maximum amount of $4,924,000 in a promissory note dated March 1, 2013. The funds are to be used for acquisition and redevelopment of a 120-unit multifamily affordable senior citizen rental housing development. Interest is charged at a rate of 2% per annum. Annual payments are equal to 25% of residual receipts for each calendar year until the 16th anniversary of the occupancy date when all outstanding principal and interest shall be paid in annual payments equal to 10% of residual receipts until maturity.

All unpaid principal and interest shall be due upon maturity, which is 55 years from the date of the loan (in service date). Residual receipts are defined as annual project revenue less the sum of (1) operating expenses, (2) debt service, (3) repayment of loans, and (4) reserve deposits. As of June 30, 2021, the Housing Authority has disbursed $3,630,445 of the maximum loan amount of $4,924,000. The City does not know the timing of the repayment of the loan, as there is not enough information on the receipt of residual receipts; therefore, the City has recorded an allowance for uncollectible for the outstanding balance, including accrued interest, of $3,782,070 at June 30, 2021.

The City entered into an Electrical Added Facilities Agreement on December 15, 2015, with United Packaging (UPG) to install new electrical lines and related improvements to directly deliver 12kV to UPG facilities. In order to expedite the construction of the substation, the City has loaned funds to UPG for cost of installation of the improvements. The loan amount of $428,495 was equal to the final cost of the project. The loan shall have a term of 60 months. The loan receivable balance was paid in full as of June 30, 2021.

The City entered into an Electrical Added Facilities Agreement on February 14, 2017, with Custom Built Motors for upgrades to the electric system to accommodate customers’ requests for increased service capability. The loan amount of $37,100 was equal to the cost of the design and construction of upgrades to the electric system. The loan shall have a term of 48 months from the date the final payment is made to the contractor. The loan began to accrue simple interest in March 2017. The interest rate in effect as of February 3, 2017, is 3.75%. The loan receivable balance was paid in full as of June 30, 2021.

The City entered into an agreement with United Package Group on April 24, 2019, for the payment of deferred fees for wastewater capacity in the amount of $481,305, which includes $400,305 in unpaid wastewater capacity charges and $81,000 in fines. The agreement is for 60 monthly payments of $9,193, which includes interest at 5.5%. The loan receivable balance was paid in full as of June 30, 2021.

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NOTE 5 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2021, was as follows:

Governmental Activities
Balance at Balance at
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital Assets, Not Being Depreciated:

Land 15,306,911 $ - $ - $ 15,306,911 $
Construction in Progress 9,015,402 4,730,680 (3,874,281) 9,871,801 Total Capital Assets, Not
Being Depreciated 24,322,313 4,730,680 - (3,874,281) 25,178,712 Capital Assets, Being Depreciated:

Structures and Improvements 23,958,044 36,989 - - 23,995,033 Furniture and Equipment 16,153,105 1,366,431 (243,425) - 17,276,111 Infrastructure 121,657,183 - - 3,874,281 125,531,464
Total Capital Assets,
Being Depreciated 161,768,332 1,403,420 (243,425) 3,874,281 166,802,608 Less Accumulated Depreciation for:

Structures and Improvements (11,766,863) (496,517) - - (12,263,380) Furniture and Equipment (13,071,107) (658,845) 227,466 - (13,502,486) Infrastructure (86,043,190) (1,860,486) - - (87,903,676) Total Accumulated
Depreciation (110,881,160) (3,015,848) 227,466 - (113,669,542) Total Capital Assets,
Being Depreciated, Net 50,887,172 (1,612,428) (15,959) 3,874,281 53,133,066 Total Governmental Activities
Capital Assets, Net 75,209,485 $ 3,118,252 $ (15,959) $ - $ 78,311,778 $

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Packet Pg. 97
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(60)
NOTE 5 CAPITAL ASSETS (CONTINUED)
Governmental Activities (Continued)
Depreciation expense was charged in the following functions in the statement of activities for the year ended June 30, 2021, as follows:

General Government 77,295 $
Public Safety 484,060
Community Services 177,597
Public Works 2,160,947
Internal Service Funds 115,949
Total 3,015,848 $
Capital asset activity for the year ended June 30, 2021, was as follows:

Business-Type Activities
Balance at Balance at
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital Assets, Not Being Depreciated:

Land 6,269,991 $ - $ - $ - $ 6,269,991 $
Construction in Progress 1,525,892 1,290,206 - (370,020) 2,446,078 Total Capital Assets, Not
Being Depreciated 7,795,883 1,290,206 - (370,020) 8,716,069 Capital Assets, Being Depreciated:

Intangible Assets 400,000 - - - 400,000
Structures and Improvements 44,784,469 - - - 44,784,469 Furniture and Equipment 44,008,161 1,052,970 (279,282) - 44,781,849 Capacity Rights 7,300,000 - - - 7,300,000
Infrastructure 123,211,171 319,913 (2,014,862) 370,020 121,886,242 Total Capital Assets,
Being Depreciated 219,703,801 1,372,883 (2,294,144) 370,020 219,152,560 Less Accumulated Depreciation for:

Intangible Assets (48,000) (8,000) - - (56,000)
Structures and Improvements (27,746,803) (1,530,394) - - (29,277,197) Furniture and Equipment (28,896,960) (1,393,335) 183,699 - (30,106,596) Capacity Rights (3,849,085) (132,727) - - (3,981,812)
Infrastructure (56,332,346) (2,895,097) 765,750 - (58,461,693) Total Accumulated
Depreciation (116,873,194) (5,959,553) 949,449 - (121,883,298) Total Capital Assets,
Being Depreciated, Net 102,830,607 (4,586,670) (1,344,695) 370,020 97,269,262 Total Business-Type Activities
Capital Assets, Net 110,626,490 $ (3,296,464) $ (1,344,695) $ - $ 105,985,331 $

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Packet Pg. 98
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(61)
NOTE 5 CAPITAL ASSETS (CONTINUED)
Business-Type Activities (Continued)
Depreciation/amortization expense was charged in the following functions in the statement of activities for the year ended June 30, 2021, as follows:

Electric Utility 3,613,957 $
Water Utility 887,368
Waste Water Utility 1,458,228
Total 5,959,553 $
NOTE 6 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS
Interfund receivable and payable balances at June 30, 2021, are as follows:

Due To/From Other Funds
Receivable Payable Amount
General Fund Other Governmental Funds 218,761 $
Other Governmental Funds Other Governmental Funds 4,140 Total $ 222,901
The interfund balances were made to cover negative cash balances and other temporary loans at June 30, 2021.

Transfers
Transfers In Transfers Out Amount
General Fund Other Governmental Funds 1,330,566 $
Electric Utility Enterprise Fund 11,660,376
Other Governmental Funds General Fund 2,349,476
Other Governmental Funds 208,070
Electric Utility Enterprise Fund 316,905
Water Utility Enterprise Fund 116,381
Waste Water Utility Enterprise
Fund 113,704
Internal Service Funds 60,053
Total 16,155,531 $
Transfers to the General Fund from the Electric Utility Enterprise Fund were for general services in accordance with Measure D.

Other Governmental Funds transfers to the General Fund were for operating costs incurred during the year.

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Packet Pg. 99
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(62)
NOTE 6 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS (CONTINUED) Transfers (Continued)
Transfers to the Other Governmental Public Financing Authority Debt Service Fund were for current-year debt service payments.

Transfers to the Other Governmental Taxable Pension Funding Debt Service Fund were for current-year debt service payments.

The City uses the Capital Improvement Projects Fund to account for all of its capital projects. The funding sources for those projects were reported as transfers from various funds to the Capital Improvement Projects Fund.

Transfers to Other Governmental Library Grant Special Revenue Fund were to fund the adult literacy program.

NOTE 7 LONG-TERM LIABILITIES
Governmental Activities
Changes in long-term liabilities for the governmental activities for the year ended June 30, 2021, are as follows:

Due Due in
Balance Balance Within More Than
July 1, 2020 Additions Deletions June 30, 2021 One Year One Year City:

Other Debt:

Taxable Pension Funding
Bonds, Series 2007 21,962,434 $ 357,120 $ (1,070,000) $ 21,249,554 $ 1,205,000 $ 20,044,554 $ Capital Lease Obligations 519,565 - (122,772) 396,793 127,401 269,392 Other-Long Term Liabilities:

Compensated Absences 2,119,504 2,166,211 (2,178,366) 2,107,349 2,072,964 34,385 Claims and Judgments
(Note 12) 5,137,812 3,317,552 (142,000) 8,313,364 2,442,420 5,870,944 County Memorandum
of Understanding 1,829,298 - - 1,829,298 - 1,829,298
Public Financing Authority:

Other Debt:

Lease Revenue Bonds,
2007 Series B 8,765,000 - (515,000) 8,250,000 535,000 7,715,000 Net Unamortized Premiums
and Discounts (62,349) - 1,735 (60,614) - (60,614)
Total Long-Term Liabilities
Governmental Activities 40,271,264 $ 5,840,883 $ (4,026,403) $ 42,085,744 $ 6,382,785 $ 35,702,959 $

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Packet Pg. 100 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(63)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Taxable Pension Funding Bonds, Series 2007
Taxable Pension Funding Bonds, Series 2007 in the amount of $31,149,400 were issued in August 2007. The bonds are payable from legally available funds of the City and were issued to pay the normal contributions to CalPERS for fiscal year 2007-08 and to pay the unamortized, unfunded accrued actuarial liability with respect to certain pension benefits of certain City employees under the Retirement Law. The bonds include $28,485,000 term current interest bonds with interest payable semiannually on February 1 and August 1 of each year commencing February 1, 2008, and $2,664,400 capital appreciation bonds payable at maturity. At June 30, 2021, the balance includes $15,100,000 principal and $6,149,554 accreted interest. The bonds have no reserve requirement.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2021, including interest, are as follows:

Year Ending June 30, Principal Interest Total
2022 1,205,000 $ 858,252 $ 2,063,252 $
2023 1,345,000 782,772 2,127,772
2024 1,500,000 698,560 2,198,560
2025 1,660,000 605,024 2,265,024
2026 1,835,000 501,572 2,336,572
2027-2031 1,360,000 1,925,776 3,285,776
2032-2036 2,415,000 1,676,100 4,091,100
2037-2038 3,780,000 228,808 4,008,808
Total 15,100,000 7,276,864 $ 22,376,864 $
Plus: Accreted Interest 6,149,554
Total Taxable Pension
Funding Bonds, Series 2007 21,249,554 $
The liability is generally paid from the Taxable Pension Funding Bonds Debt Service Fund.

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1.L. This liability, amounting to $2,107,349 at June 30, 2021, will be paid in future years from the General Fund.

Claims and Judgments
The City’s liability for claims and judgments is described in Note 12. The liability of $8,313,364 will be paid in future years from the Insurance Internal Service Fund.

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Packet Pg. 101 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(64)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
County Memorandum of Understanding
In November 1995, the County of San Bernardino (County) loaned $1,500,000 to the City under a memorandum of understanding between the County and the City and approved by the City on May 2, 1995. The loan is to be repaid without interest from development impact fees imposed and collected by the City on new development. In December 1996 and May 1997, the County loaned an additional $329,298 under a memorandum of understanding for administrative and engineering costs incurred by the County on the City’s behalf. At June 30, 2021, the total amount due is $1,829,298. There is no repayment schedule, as fixed maturities and debt service payments have not been established for this loan.

Capital Lease Obligations
The City has entered into capital lease agreements with various parties with expiration dates through fiscal year 2023-2024. For accounting purposes, the lease agreements qualify as capital leases and therefore have been recorded at the present value of the future minimum lease payments as of the inception date. The assets acquired through capital leases are included in capital assets at a cost of $637,877, with corresponding accumulated depreciation of $79,735. The City’s future commitment under these capital leases at June 30, 2021, is $396,793.

The following is a schedule of future minimum lease payments under the capital lease, together with present value of the net minimum lease payments, as of June 30, 2021:

Year Ending June 30, Total
2022 142,360 $
2023 142,360
2024 142,360
Minimum Lease Payments 427,080
Less: Amount Representing Interest (30,287)
Present Value of Minimum Lease Payments 396,793 $

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Packet Pg. 102 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(65)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Colton Public Financing Authority Lease Revenue Bonds, 2007 Series B The Lease Revenue Bonds, 2007 Series B in the original issue amount of $13,385,000 were issued for the purpose of financing certain capital improvements for the City and refinancing the Refunding Certificates of Participation, Series 1998 and the Lease Revenue Bonds 2002, Series A. The bonds are limited obligations of the Authority payable from and secured by certain revenues consisting of certain base rental payments with respect to lease property by the City pursuant to a lease agreement dated August 1, 2007, between the City and the Authority. The bonds maturing on or after August 1, 2018, are subject to redemption prior to their respective maturity dates as a whole or in part from prepayments of base rental payment made by the City after August 1, 2017. Interest on the bonds is payable on August 1 and February 1 of each year commencing February 1, 2008, at a rate ranging from

4.0% to 5.0%. A reserve fund for the 2007 Series B Lease Revenue Bonds was established to be equal to the maximum annual debt service for the current period to the final payment, with a minimum requirement of $905,019. At June 30, 2021, a total of $914,932 was held in reserve.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2021, including interest, are as follows:

Year Ending June 30, Principal Interest Total
2022 535,000 $ 366,683 $ 901,683 $
2023 555,000 343,173 898,173
2024 580,000 318,345 898,345
2025 605,000 292,045 897,045
2026 635,000 264,145 899,145
2027-2031 3,640,000 846,322 4,486,322
2032-2033 1,700,000 81,699 1,781,699
Total 8,250,000 $ 2,512,412 $ 10,762,412 $

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Packet Pg. 103 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(66)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities
Changes in long term liabilities for the business type activities for the year ended June 30, 2021, are as follows:

Due Due in
Balance Balance Within More Than
July 1, 2020 Additions Deletions June 30, 2021 One Year One Year Revenue Bonds:

Other Debt:

Colton Utility Authority
Water Revenue:

Bonds, Series 2017 16,980,000 $ - $ $ 16,620,000 (360,000) $ 375,000 $ 16,245,000 $ Unamortized Bond Premium 645,861 - (24,144) 621,717 - 621,717 Colton Utility Authority
Installment Sale Agreement 7,767,233 - (550,060) 7,217,173 566,073 6,651,100 Colton Public Financing
Authority Revenue
Refunding Bonds,
Series 2007A 6,880,000 - (1,310,000) 5,570,000 245,000 5,325,000 Colton Public Financing
Authority Electric Revenue
Refunding Bonds,
Series 2012A 17,890,000 - (1,875,000) 16,015,000 1,970,000 14,045,000 Unamortized Bond Premium 2,052,961 - (273,679) 1,779,282 - 1,779,282 Total 52,216,055 $ - $ (4,392,883) $ 47,823,172 $ 3,156,073 $ 44,667,099 $ Notes Payable:

Direct Borrowings and Placements:

State of California Water
Resource Control Board 1,593,674 $ - $ (518,163) $ 1,075,511 $ 531,117 $ 544,394 $ Note Payable 1,751,728 - (333,261) 1,418,467 341,592 1,076,875 Other Long-Term Liabilities:

Compensated Absences 676,948 906,017 (989,461) 593,504 593,504 - Total Long-Term Liabilities
Business-Type Activities 56,238,405 $ 906,017 $ (6,233,768) $ 50,910,654 $ 4,622,286 $ 46,288,368 $ Colton Utility Authority Water Revenue Bonds, Series 2017 The Colton Utility Authority Water Revenue Bonds, Series 2017 serial and term bonds in the original issue amount of $18,155,000 were issued to (i) refund the remaining outstanding Colton Financing Authority 1998 Water Revenue Bonds, (ii) acquire certain capital improvements for the Water Utility Enterprise Fund, and (iii) to pay certain costs of issuance.

The bonds are secured solely by and payable from net water revenues and certain funds and accounts held under the indenture. The bonds mature through March 2037 and bear interest, payable on March 1 and September 1, at rates from 2.0% to 3.3%. The bonds are subject to optional redemption beginning March 1, 2028, at the option of the Utility Authority.

Bonds maturing on March 1, 2042 and March 1, 2047, are subject to mandatory redemption.

The term bonds are subject to mandatory sinking account redemption beginning with bonds maturing on March 1, 2038. The 1998 Water Revenue Bonds were redeemed on March 1, 2018. A reserve fund for the 2017 Water Revenue Bonds was established to be equal to the maximum annual debt service for the current period to the final payment, with a minimum requirement of $1,129,119. At June 30, 2021, the reserve requirement is satisfied by a bond insurance with Assurance Guaranty Municipal Corporation. Additionally, the bonds require the City to collect fees by the Water Enterprise of at least 125% of the annual debt service of the bonds. At June 30, 2021, total amounts collected exceeded the minimum requirement.

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Packet Pg. 104 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(67)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Colton Utility Authority Water Revenue Bonds, Series 2017 (Continued) The annual requirements to amortize the indebtedness as of June 30, 2021, including interest, are as follows:

Year Ending June 30, Principal Interest Total
2022 375,000 $ 629,119 $ 1,004,119 $
2023 515,000 614,119 1,129,119
2024 410,000 596,169 1,006,169
2025 420,000 583,869 1,003,869
2026 435,000 571,269 1,006,269
2027-2031 2,505,000 2,509,095 5,014,095
2032-2036 3,080,000 1,936,888 5,016,888
2037-2041 3,610,000 1,401,937 5,011,937
2042-2046 4,305,000 717,600 5,022,600
2047-2047 965,000 38,600 1,003,600
Total 16,620,000 $ 9,598,665 $ 26,218,665 $
Colton Utility Authority Installment Sale Agreement
In March 2017, the Colton Utility Authority entered into an installment sale agreement that provided funds for (i) the redemption of the Authority’s Revenue Bonds, 2000 Series, (ii) certain capital improvements to the Wastewater Utility Enterprise Fund and (iii) the payment of costs of issuance. The agreement matures through March 2032 and bears interest, payable on March 1 and September 1, at a rate of 2.89%. The agreement is secured solely by and payable from net wastewater revenues and certain funds and accounts held under the agreement. The outstanding balance of the Revenue Bonds 2000 Series was redeemed on April 29, 2017.

The annual requirements to amortize the indebtedness as of June 30, 2021, including interest are as follows:

Year Ending June 30, Principal Interest Total
2022 566,073 $ 204,483 $ 770,556 $
2023 582,551 188,005 770,556
2024 599,510 171,047 770,557
2025 616,961 153,595 770,556
2026 634,921 135,635 770,556
2027-2031 3,462,847 389,934 3,852,781
2032 754,310 16,347 770,657
Total 7,217,173 $ 1,259,046 $ 8,476,219 $

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Packet Pg. 105 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(68)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Colton Public Financing Authority Revenue Refunding Bonds, 2007 Series A The Colton Public Financing Authority Revenue Refunding Bonds, 2007 Series A in the original issue amount of $15,620,000 were issued to provide funds for (i) the acquisition, construction and installation of certain improvements to the City’s Electric System (the 2007 Project), (ii) the prepayment of a portion of the Certificates of Participation, Financing Authority for Resource Efficiency of California, Series 1997, (iii) to purchase a Reserve Account Policy for the Reserve Account, and (iv) the payment of the cost of issuance related to the 2007 Bonds. The 2007 Bonds are secured by a pledge, charge and lien upon facility revenues and a pledge of all the monies in the Purchase Payments Account and the Reserve Account. Purchase Payments consist of the purchase payments made by the City in connection with its purchase of the 2007 Project. The 2007 Purchase Payments will be subordinate to the 1997 Installment Payments. Interest on the bonds is payable semiannually on April 1 and October 1 of each year commencing October 1, 2007. A reserve fund for the 2007 Series A Revenue Refunding Bonds was established with a requirement of 125% of average annual debt service for the current period to final payment, with a minimum requirement of $1,095,281. At June 30, 2021, the reserve requirement is satisfied by a bond insurance with Ambac. Additionally, the bonds require the City to collect fees of the Electric System so that net revenues equal at least 125% of the annual debt service of the bonds. At June 30, 2021, total amounts collected exceeded the minimum requirement.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2021, including interest are as follows:

Year Ending June 30, Principal Interest Total
2022 245,000 $ 258,983 $ 503,983 $
2023 255,000 248,264 503,264
2024 265,000 237,108 502,108
2025 280,000 225,183 505,183
2026 290,000 212,583 502,583
2027-2031 1,660,000 851,115 2,511,115
2032-2036 2,095,000 421,612 2,516,612
2037 480,000 22,800 502,800
Total 5,570,000 $ 2,477,648 $ 8,047,648 $

2.a
Packet Pg. 106 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(69)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Colton Public Financing Authority Electric Revenue Refunding Bonds, Series 2012A The Colton Public Financing Authority Electric Revenue Refunding Bonds, Series 2012A in the original issue amount of $30,765,000 were issued to provide funds for (i) the redemption of the Authority’s Revenue Bonds, 2002 Series, (ii) a deposit into the Reserve Account, and (iii) the payment of costs of issuance related to the 2012 Bonds. The bonds are secured primarily by a pledge, charge and lien upon facilities revenues and a pledge of all the moneys in the Purchase Payment Account and Reserve Account. The bonds mature beginning April 1, 2013 through April 1, 2028 and bear interest, payable April 1 and October 1, at rates from 2.00% to 5.00%. A reserve fund for the 2012 Series A Revenue Refunding Bonds was established to be equal to the maximum annual debt service for the current period to the final payment, with a minimum requirement of $2,770,500. At June 30, 2021, a total of $2,786,159 was held in reserve. Additionally, the bonds require the City to collect fees of the Electric System so that net revenues equal at least 125% of the annual debt service of the bonds. At June 30, 2021, total amounts collected exceeded the minimum requirement.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2021, including interest, are as follows:

Year Ending June 30, Principal Interest Total
2022 1,970,000 $ 800,750 $ 2,770,750 $
2023 2,065,000 702,250 2,767,250
2024 2,165,000 599,000 2,764,000
2025 2,280,000 490,750 2,770,750
2026 2,390,000 376,750 2,766,750
2027-2029 5,145,000 389,000 5,534,000
Total 16,015,000 $ 3,358,500 $ 19,373,500 $
State of California Water Resources Control Board
In March 1998, the state of California, acting by and through the State of California Water Resources Control Board, entered into a loan agreement with the City that provided for the expansion and renovation of the sewer facility. The agreement provided for a loan amount not to exceed $8,114,108 with repayments to begin upon completion of the project and bears interest at a rate of 2.5%.

At June 30, 2021, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
2022 531,117 $ 16,133 $ 547,250 $
2023 544,394 8,166 552,560
Total 1,075,511 $ 24,299 $ 1,099,810 $

2.a
Packet Pg. 107 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(70)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Note Payable
The City entered into a note payable agreement to acquire water meters. The final payment is due in fiscal year 2024-2025.

At June 30, 2021, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
2022 341,592 $ 35,462 $ 376,754 $
2023 350,132 26,922 377,054
2024 358,885 18,169 377,054
2025 367,858 9,196 377,054
Total 1,418,467 $ 89,749 $ 1,507,916 $
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1.L. This liability, amounting to $593,504 at June 30, 2021, will be paid in future years from the respective enterprise funds.

Assessment District Bonds
The following bonds are not secured by the general taxing power of the City, state of California or any other political subdivision thereof and neither the City, State nor any political subdivision thereof has pledged its full faith and credit for bond payments.

NOTE 8 PENSION PLANS
The following is a summary of pension related items for the year ended June 30, 2021:

Deferred Deferred
Pension Outflows Inflows Pension
Liability of Resources of Resources Expense
Miscellaneous 48,349,793 $ 5,947,597 $ (488,951) $ 6,358,353 $ Safety 63,933,056 12,306,189 (1,722,109) 8,776,334
Total 112,282,849 $ 18,253,786 $ (2,211,060) $ 15,134,687 $

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Packet Pg. 108 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(71)
NOTE 8 PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s Safety (police and fire) Plan, which is a cost-sharing defined benefit plan, and the Miscellaneous (all other) Plan, which is an agent multiple-employer defined benefit pension plan administered by CalPERS (collectively, the Plans), which acts as a common investment and administrative agent for its participating member employers.

Benefit provisions under the Plans are established by state of California statute and City 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.

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 fulltime employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services.

Public Employees’ Pension Reform Act miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five 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. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

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Packet Pg. 109 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(72)
NOTE 8 PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at the measurement date ended June 30, 2020, are summarized as follows:

Miscellaneous
Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.5%@55 2%@62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 - 67 52 - 67
Monthly Benefits, as a % of Eligible Compensation 1.426% to 2.418% 1.0% to 2.5% Required Employee Contribution Rates 8% 6.25%
Required Employer Contribution Rates:

Normal Cost Rate 11.149% 6.250%
Payment of Unfunded Liability 3,090,938 $ - $
Safety - Police
Tier I Tier II Tier III - PEPRA
Prior to On or After On or After
Hire Date October 15, 2011 October 15, 2011 January 1, 2013 Benefit Formula 3%@50 3%@55 2.7%@57
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 50 - 55 50 - 57
Monthly Benefits, as a % of Eligible
Compensation 3.0% 2.4% to 3.0% 2% to 2.7%
Required Employee Contribution Rates 9.000% 9.000% 12.250% Required Employer Contribution Rates:

Normal Cost Rate 25.540% 23.558% 13.884%
Payment of Unfunded Liability 2,091,636 $ 1,388 $ 5,036 $ Safety - Fire
Tier I Tier II Tier III - PEPRA
Prior to On or After On or After
Hire Date October 15, 2011 October 15, 2011 January 1, 2013 Benefit Formula 3%@50 2%@50 2.7%@57
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 50 - 55 50 - 57
Monthly Benefits, as a % of Eligible
Compensation 3.0% 2.0% to 2.7% 2% to 2.7%
Required Employee Contribution Rates 9.000% 9.000% 12.250% Required Employer Contribution Rates:

Normal Cost Rate 25.540% 23.558% 13.884%
Payment of Unfunded Liability 1,876,841 $ 2,928 $ 5,088 $

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Packet Pg. 110 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(73)
NOTE 8 PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Employees Covered
At the measurement date ended June 30, 2020, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Miscellaneous
Inactive Employees or Beneficiaries Currently
Receiving Benefits 384
Inactive Employees Entitled to but Not Yet
Receiving Benefits 288
Active Employees 199
Total 871
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are 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 CalPERS’s 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. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if Plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as Plan member contributions requirements are classified as Plan member contributions.

Contributions for the fiscal year ended June 30, 2021, included $7,073,855 for the UAL and $3,478,356 for the normal cost rate resulting in a total amount paid of $10,552,211.

B. Net Pension Liability
The City’s net pension liability for each plan 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.

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Packet Pg. 111 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(74)
NOTE 8 PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2019, actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method Entry-Age Normal Entry-Age Normal Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.500% 2.50%
Projected Salary Increase (1) (1)
Mortality Rate Table (2) (2)
Post-Retirement Benefit Increase (3) (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates includes 15 years of 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 Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
(3) The less of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter.

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 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.

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Packet Pg. 112 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(75)
NOTE 8 PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Long-Term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as follows:

New Real Return Real Return
Strategic Years Years
Asset Class (a) Allocation 1 - 10 (b) 11+ (c)
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 Assets 13.00 3.75% 4.93%
Liquidity 1.00 0.00% -0.92%
Total 100.00%
(a) In the CalPERS 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. (b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.9% 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.

Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.

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Packet Pg. 113 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(76)
NOTE 8 PENSION PLANS (CONTINUED)
C. Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan, using the measurement date of June 30, 2020, are as follows:

Increase (Decrease)
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2019
(Measurement Date) 157,659,720 $ 111,447,536 $ 46,212,184 $ Changes in the Year:

Service Cost 2,461,858 - 2,461,858
Interest on the Total Pension
Liability 11,011,405 - 11,011,405
Differences Between Expected -
and Actual Experience (838,202) - (838,202)
Changes in Assumptions - - -
Net Plan to Plan Resource
Movement - - -
Contribution - Employer - 4,112,145 (4,112,145)
Contribution - Employee
(Paid by Employer) - - -
Contribution - Employee - 1,020,294 (1,020,294)
Net Investment Income - 5,522,127 (5,522,127)
Administrative Expenses - (157,114) 157,114
Miscellaneous Income - - -
Benefit Payments, Including
Refunds of Employee
Contributions (8,093,554) (8,093,554) -
Net Changes 4,541,507 2,403,898 2,137,609
Balance at June 30, 2020
(Measurement Date) 162,201,227 $ 113,851,434 $ 48,349,793 $ Proportionate Share of Net Pension Liability
As of June 30, 2020, the City reported net pension liabilities for its proportionate share of the net pension liability for the Safety Plan as follows:

Proportionate
Share of
Net Pension
Liability
Safety 63,933,056 $

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Packet Pg. 114 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(77)
NOTE 8 PENSION PLANS (CONTINUED)
C. Changes in the Net Pension Liability (Continued)
Proportionate Share of Net Pension Liability (Continued) The City’s net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the plans is measured as of June 30, 2020, and the total pension liability for each 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 City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Safety Plan as of measurement dates ended June 30, 2019 and 2020, were as follows:

Safety
Proportion - June 30, 2019 0.94376%
Proportion - June 30, 2020 0.95962%
Change - Increase (Decrease) 0.01586%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each plan, calculated using the discount rate for each plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability 69,740,424 $ 91,857,735 $
Current Discount Rate 7.15% 7.15%
Net Pension Liability 48,349,793 $ 63,933,056 $
1% Increase 8.15% 8.15%
Net Pension Liability 30,711,446 $ 41,018,215 $
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

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Packet Pg. 115 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(78)
NOTE 8 PENSION PLANS (CONTINUED)
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2021, the City recognized pension expense of $6,358,353 and $8,776,334 for the Miscellaneous and Safety Plans, respectively. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Safety
Deferred Deferred Deferred Deferred
Outflows Inflows Outflows Inflows
of Resources of Resources of Resources of Resources
Pension Contributions Subsequent
to Measurement Date 4,593,240 $ - $ 5,958,971 $ - $
Differences Between Expected
and Actual Experience 465,066 (488,951) 4,957,684 -
Change in Assumptions - - - (212,962)
Change in Employer's Proportion
and Differences Between the
Employer's Contributions and the
Employer's Proportionate Share
of Contributions - - - (1,509,147)
Net Differences Between Projected
and Actual Earnings on Plan
Investments 889,291 - 1,389,534 -
Total 5,947,597 $ (488,951) $ 12,306,189 $ (1,722,109) $ Amounts of $4,593,240 and $5,958,971 reported as deferred outflows of resources related to contributions subsequent to the measurement date for Miscellaneous and Safety Plans, respectively, will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending June 30, Miscellaneous Safety
2022 (339,984) $ 727,989 $
2023 165,220 1,809,522
2024 577,096 1,391,364
2025 463,074 696,234
2026 - -
Thereafter - -
E. Payable to the Pension Plans
At June 30, 2021, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2021.

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Packet Pg. 116 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(79)
NOTE 9 OTHER POST-EMPLOYMENT BENEFITS PLAN
Plan Description
The City provides other post-employment benefits (OPEB) through a single-employer defined benefit healthcare plan. The plan, which is administered by the City, provides certain healthcare benefits. Specifically, the City provides health insurance for its retired employees according to the Personnel Rules and Regulations. The authority to do so is included annually in the Memorandum of Understanding between the City and each of its employee groups and ultimately passed by City Council action. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. The plan does not issue a separate report.

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:

Inactive Employees or Beneficiaries Currently
Receiving Benefits 142
Active Employees 249
Total 391
Total OPEB Liability
The City’s OPEB liability of $45,147,243 was measured as of June 30, 2020, and was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020 using standard update procedures.

Actuarial Assumptions and Other Inputs
The total OPEB liability as of June 30, 2020, was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 2.44%
Inflation 2.50%
Projected Salary Increase 3.00% per annum, in aggregate Healthcare Cost Trend Rates 5.4% decreasing to 4.0% by 2076 Pre-retirement Turnover Derived from CalPERS pension plan Mortality Derived from CalPERS pension plan updated
to reflect most recent experience study

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Packet Pg. 117 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(80)
NOTE 9 OTHER POST-EMPLOYMENT BENEFITS PLAN (CONTINUED)
Discount Rate
There are no assets accumulated in a trust, therefore, the discount rate is the average of three rate indices: S&P General Obligation Municipal Bond 20-Year High Grade Index, the Fidelity Municipal Bond AA 20-Year Maturity Yield and the Bond Buyer General Obligation 20-Bond Municipal Bond index.

Change in Assumption
Discount rate was changed from 3.15% to 2.44%.

Changes in Total OPEB Liability
The change in total OPEB liability is as follows:

Total
OPEB
Liability
Balance at June 30, 2019
(Measurement Date) 39,888,443 $
Changes in the Year:

Service Cost 1,921,818
Interest on the Total OPEB Liability 1,288,268
Differences Between Expected and Actual
Experience -
Changes in Assumptions 3,874,473
Benefit Payments (1,825,760)
Net Changes 5,258,799
Balance at June 30, 2020
(Measurement Date) 45,147,242 $
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate for the Plan, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease Discount Rate 1% Increase
(1.44%) (2.44%) (3.44%)
Total OPEB Liability 51,621,010 $ 45,147,242 $ 39,838,665 $

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Packet Pg. 118 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(81)
NOTE 9 OTHER POST-EMPLOYMENT BENEFITS PLAN (CONTINUED)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate (Continued) The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower than the current healthcare cost trend rates:

Current
Healthcare
Cost
1% Decrease Trend Rates 1% Increase
(4.40%) (5.40%) (6.40%)
Total OPEB Liability 39,981,628 $ 45,147,242 $ 51,823,867 $ OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense of $4,398,872. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB Contributions Subsequent to Measurement
Date 1,949,639 $ - $
Differences Between Expected and Actual
Experience 4,617,218 -
Change in Assumptions 4,824,581 (832,390)
Total 11,391,438 $ (832,390) $
An amount of $1,949,639 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ending June 30, 2022.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year Ending June 30, Amount
2022 1,188,785 $
2023 1,188,785
2024 1,518,424
2025 1,576,129
2026 1,576,129
Thereafter 1,561,157

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Packet Pg. 119 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(82)
NOTE 10 JOINTLY GOVERNED ORGANIZATIONS
Retail Energy Supply
The City receives electricity through firm contracts, local generation and market purchases.

The majority of electricity is delivered through firm contracts, which include “take or pay” and term purchases. Local generation and market purchases supplement firm contracts to meet the City’s retail load requirements.

Take or Pay Contracts
The City has entered into “take or pay” contracts to provide for future electric generating capacity for Colton electric utility customers. These contracts are not considered joint ventures since the City has no interest in the assets, liabilities or equity associated with any of the projects to which these take or pay contracts refer. The City is, however, obligated to pay its share of the amortized cost of indebtedness and operating and maintenance costs, regardless of the ability of the contracting agency to provide electricity or the City’s need for the electricity. However, in the opinion of management, the City does not have a financial responsibility for purposes of GASB Statement No. 14, Financial Reporting Entity, because the Southern California Public Power Authority (SCPPA) does not depend on revenue from the City to continue in existence. Obligation for this indebtedness is through participation in one joint powers agency, SCPPA.

These contracts constitute an obligation of the Electric Utility Fund to make debt service payments from its operating revenues. The Electric Utility Fund’s share of debt service is not recorded as an obligation on the accompanying basic financial statements; however, it is included as a component of its power supply expenses.

During the fiscal year ended June 30, 2021, the Electric Fund made payments totaling $5,616,699 for “take or pay” contracts. This amount includes over/under billings from previous fiscal year and contract provisions.

Southern California Public Power Authority
SCPPA membership consists of eleven municipal electric utilities and one public district of the state of California, which serves the electric power needs of their Southern California electricity customers. SCPPA, a public entity organized under the laws of the state of California, was formed by a joint powers agreement dated November 1, 1980, pursuant to the joint exercise of powers act of the state of California. SCPPA was created for the purpose of planning, financing, developing, acquiring, constructing, operating and maintaining projects for the generation and transmission of electric energy for sale to its participants. The joint powers agreement has a term expiring in 2030 or such later date as all bonds and notes of SCPPA and the interest thereon have been paid in full or adequate provisions for payments have been made. A copy of SCPPA’s audited financial statements can be reviewed on their website at www.scppa.org or can be obtained by written request at 225 South Lake Avenue, Suite 1250, Pasadena, CA 91101.

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Packet Pg. 120 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(83)
NOTE 10 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Southern California Public Power Authority (Continued)
The City’s obligation is determined by the extent of its participation in projects developed by SCPPA. A summary of the City’s contracts and related projects and its contingent liability at June 30, 2021, is as follows:

Dollar Amounts Expressed in Thousands
City's City's
Total Total City's Share Share
Principal Interest Percentage Principal Interest
Project Outstanding Outstanding Share Outstanding Outstanding Generation Projects:

Magnolia Power Project 241,440 $ 91,152 $ 4.31% 10,406 $ 3,929 $ Natural Gas Projects:

Natural Gas Pinedale Project 1,739 611 100.00% 1,739 611 Natural Gas Barnett Project 3,596 1,264 100.00% 3,596 1,264 Prepaid Natural Gas
Project No. 1 277,105 121,272 10.76% 29,807 13,045
Total Bonds Payable $ 18,849 45,548 $
The City’s interests in various SCPPA projects are described as follows:

Generation Projects
Palo Verde Project – On August 14, 1981, SCPPA purchased a 5.91% interest in the Palo Verde Nuclear Generating Station (PVNGS), a 3,810 MW nuclear fueled generating station near Phoenix, Arizona, a 5.44% ownership interest in the Arizona Nuclear Power Project High Voltage Switchyard (ANPP HVS) and a 6.55% share of the right to use certain portions of the Arizona Nuclear Power Project Valley Transmission System (collectively, the Palo Verde Project). Units 1, 2 and 3 of the Palo Verde Project began commercial operations in January 1986, September 1986, and January 1988, respectively.

Since inception of the ANPP HVS capital additions, new terminations and other events have successively changed the respective ownership interest in the ANPP HVS. In the fiscal year ended 2011, the PVNGS fourth transformer became the 14th termination in the ANPP HVS and caused SCPPA’s proportional ownership percentage to change from

5.56% to 5.44%. This change became effective on April 1, 2011.

Units 1, 2, and 3 each operated under a 40 year Full Power Operating License from the Nuclear Regulatory Commission (NRC), expiring in 2025, 2026 and 2027, respectively.

In April 2011, after a detailed, two year process, the NRC approved the application to extend the operating licenses for all three units for an additional 20 years, allowing Unit 1 to operate through 2045, Unit 2 through 2046 and Unit 3 through 2047.

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Packet Pg. 121 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(84)
NOTE 10 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Southern California Public Power Authority (Continued)
Generation Projects (Continued)
San Juan Project – Effective July 1, 1993, SCPPA purchased a 41.80% interest in Unit 3 and related common facilities of the San Juan Generating Station from Century Power Corporation. Unit 3, a 497-MW unit, is one unit of a four-unit coal-fired power generating station in New Mexico. In an effort by the California participants in San Juan Unit 3, SCPPA and the other owners agreed to decommission Unit 3 no later than December 31, 2017. To accommodate this goal, the participants accelerated the debt payment so that all debt was satisfied by January 1, 2017. Additionally, the coal supply contracts were renegotiated to remove the minimum coal purchase quantities beginning in fiscal year 2015-2016. Unit 3 ceased commercial operations on December 18, 2017.

The City continues to have some small administrative costs associated with decommissioning activities.

Magnolia Power Project – The Magnolia Power Project (MAG) consists of a combined cycle natural gas fired generating plant with a nominally rated net base capacity of 242 MW and was built on a site in Burbank, California. The plant is the first that is wholly owned by SCPPA and entitlements to 100% of the capacity and energy of MAG have been sold to six of its members.

Green Power
Hoover Uprating Project – As of March 1, 1986, SCPPA and six participants entered into an agreement pursuant to which each participant assigned its entitlement to Hoover Uprating capacity and associated firm energy to SCPPA in return for SCPPA’s agreement to provide for the advancement of funds for the uprating to the United States Bureau of Reclamation on behalf of such participants. The agreement expires on September 30, 2017.

On December 20, 2011, the Hoover Power Allocation Act, which extends the availability of Hoover Power to the existing contractors for an additional 50 years and creates a pool for new entrants, was signed into law. The participants entered into new agreements with the federal government for the capacity and energy, effective from October 1, 2017 through September 30, 2067. SCPPA and the six participants have agreed, effective October 1, 2017 through September 30, 2067, for the capacity and energy, as approved by each participant’s governing body.

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Packet Pg. 122 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(85)
NOTE 10 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Southern California Public Power Authority (Continued)
Transmission Projects
Mead Phoenix and Mead Adelanto Projects – As of August 4, 1992, SCPPA entered into an agreement to acquire an interest in the Mead Phoenix Project (Mead Phoenix), a transmission line extending between the Westwing substation in Arizona and the Marketplace substation in Nevada. The agreement provides SCPPA with an 18.31% interest in the Westwing Mead project component, a 17.76% interest in the Mead Substation project component and a 22.41% interest in the Mead Marketplace project component.

As of August 4, 1992, SCPPA also entered into an agreement to acquire a 67.92% interest in the Mead Adelanto Project (Mead Adelanto), a transmission line extending between the Adelanto substation in Southern California and the Marketplace substation in Nevada. Funding for these projects was provided by a transfer of funds from the Multiple Project Fund and commercial operations commenced in April 1996. The Los Angeles Department of Water & Power (LADWP) serves as project manager and operating agent of Mead Adelanto.

Natural Gas Projects
Natural Gas Pinedale Project – On July 1, 2005, SCPPA together with LADWP and Turlock Irrigation District (TID) acquired 42.5% of an undivided working interest in three natural gas leases located in the Pinedale Anticline region of the state of Wyoming.

SCPPA’s individual share in these interests equals 14.9%. The purchase includes 38 operating oil and gas wells and associated lateral pipelines, equipment, permits, rights of way and easements used in production. The natural gas field production is expected to increase for several more years as additional capital is invested on drilling new wells and then decline over a life expectancy greater than 30 years.

Natural Gas Barnett Project – Natural gas resources in the Barnett shale geological formation in Texas were acquired from Collins and Young Holding, L.L.P. (C&Y) for a total of $84 million. The acquisition settled on October 26, 2006, and was completed on December 7, 2006, when the participants, together with TID, exercised their option to purchase additional resources from C&Y.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(86)
NOTE 10 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Southern California Public Power Authority (Continued)
Natural Gas Projects (Continued)
Prepaid Natural Gas Project No. 1 – On October 11, 2007, SCPPA made a onetime prepayment of $481 million to acquire the right to receive approximately 135 billion cubic feet of natural gas from J. Aron & Company (J. Aron) to be delivered over a 30 year term beginning July 1, 2008. On October 3, 2007, prior to the acquisition of the prepaid gas supply, SCPPA entered into five separate Prepaid Natural Gas Sales Agreements (the Gas Sales Agreements) with J. Aron and simultaneously, five Prepaid Natural Gas Supply Agreements (the Gas Supply Contracts) in which SCPPA sold its interest in the natural gas, on a “take and pay” basis, to the cities of Anaheim, Burbank, Colton, Glendale and Pasadena (the Project No. 1 Participants). Through the Gas Supply Contracts, SCPPA has provided for the sale to the Project Participants, on a pay as you go basis, of all of the natural gas to be delivered to SCPPA pursuant to the Gas Sales Agreements.

On October 22, 2009, the Prepaid Natural Gas Sales Agreements and certain other agreements were restructured to reduce risk, provide an acceleration of a portion of the long term savings, reduce the remaining volumes of gas to be delivered from 135 billion to 90 billion cubic feet and shorten the term of the agreements from 30 years to 27 years. As a result of the restructuring, the Natural Gas contracts will now expire in 2035 and $165.5 million principal of the 2007 Natural Gas Project Bonds were terminated.

San Bernardino Valley International Airport Authority
In May 1992, the San Bernardino Valley International Airport Authority (SBVIAA) was created pursuant to a joint exercise of powers agreement, entered into between the City of Colton, the County of San Bernardino and the Cities of Loma Linda, San Bernardino and Highland. The SBVIAA was established for the purpose of acquiring, operating, repairing, maintaining and administrating the aviation portions of the former Norton Air Force Base, now known as the San Bernardino International Airport. The City has no equity interest in the SBVIAA and does not receive a share of operating results. A copy of SBVIAA’s audited financial statements can be obtained by written request at 294 S. Leland Norton Way, Suite #1, San Bernardino, CA 92408.

Colton/San Bernardino Regional Tertiary Treatment and Water Reclamation Authority The City is a member of the Colton/San Bernardino Regional Tertiary Treatment and Water Reclamation Authority (the Regional Authority). The Governing Board of the Regional Authority is composed of two appointed representatives, one each from Colton and San Bernardino. In September 1994, the Regional Authority was formed for the purpose of creating a public agency to exercise the common powers of Colton and San Bernardino to construct, operate, use and maintain tertiary wastewater treatment, disposal and water reclamation systems. The City has no equity interest in the Regional Authority and does not receive a share of operating results.

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Packet Pg. 124 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(87)
NOTE 10 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Colton/San Bernardino Regional Tertiary Treatment and Water Reclamation Authority (Continued)
In April 1994, the Regional Authority entered into a second agreement that provided for a loan in the amount of $30,563,058 for the construction of the Regional Tertiary Treatment System (RIX full scale facility). See Note 7 for complete disclosure. The City has no equity interest in the Regional Authority and does not receive a share of operating results. A copy of the Authority’s audited financial statements can be obtained by written request at 300 North “D” Street, 5th Floor, San Bernardino, CA 92418.

NOTE 11 CONCESSIONAIRE AGREEMENT
In March 2015, the City entered into a wastewater enterprise lease agreement with the City of Grand Terrace. Per the agreement, the City of Grand Terrace agreed to lease to the City the City of Grand Terrace’s wastewater enterprise. The agreement was formed for the sole purpose for arranging for the City to carry out all aspects of operation and maintenance of the City of Grand Terrace’s wastewater enterprise pursuant to and in accordance with the provisions of the sewer services agreement. The agreement is for a term of 50 years ending in 2064.

The City of Grand Terrace continues to own the wastewater enterprise. The City has been afforded long-term nonexclusive access and use of the facilities to perform the services required under the agreement. The City is to bill and collect all user fees related to the wastewater enterprise that include (a) sewer services fees, charges and assessments, (b) sewer capacity charges, sewer connection charges and (c) other revenue or income derived from use and operation of the wastewater enterprise. As compensation for the exclusive use of the wastewater enterprise, the City made a onetime advance payment of $400,000 and will pay approximately $300,000 in annual payments thereafter. The initial payment of $400,000 was recorded as intangible assets, amortized over the term of the agreement, which is 30 years.

During the fiscal year 2020-2021, the City made the annual payment of $318,349, which is included in the maintenance and operations expense in the Wastewater Utility Enterprise Fund.

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Packet Pg. 125 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(88)
NOTE 12 COMMITMENTS AND CONTINGENCIES
Self-Insurance Payable
The City is exposed to various risk of loss related to torts; theft, damage and destruction of assets; errors and omissions; and injuries to employees. The City adopted a self-insurance program for workers’ compensation and general liability and uses an internal service fund to account for and finance its uninsured risk of loss. Under this program, the self-insurance funds provide coverage for up to a maximum of $1 million for each workers’ compensation claim and $20 million for each general liability claim and fully insures other risks through purchase of commercial insurance. All funds of the City participate in the program and make payments to the internal service fund.

Liability: The City insures automobile and general liability risk up to $1 million per occurrence. There is excess liability coverage of $20 million for amounts above the $1 million self-insured retention.

Workers’ Compensation: The City is self-insured for workers’ compensation risk up to $1 million per occurrence. Excess coverage is in place for amounts above the $1 million self-insured retention up to state of California statutory limits.

Property: The City purchases all risk property insurance, subject to exclusions, covering City buildings, contents, higher cost vehicles and machines subject to deductibles of $25 thousand to $100 million (per property limits) per occurrence depending upon the type of loss.

Crime: The City purchases crime (bond type) insurance up to $1 million per occurrence for loss of money and securities caused by employees and or others.

The fund establishes claims liabilities based on estimates of the ultimate cost of claims (including future claim adjustment expenses) that have been reported but not settled and of claims that have been incurred but not reported. The City has accrued for its anticipated liability with respect to claims filed and claims incurred but not reported to the City as of year-end. The accruals are in the amounts of $5,141,966 and $3,171,398 for the general liability claims and workers’ compensation claims, respectively, for a total of $8,313,364.

A reconciliation of changes in aggregate liabilities for claims for the last two fiscal years is as follows:
2021 2020
Beginning-Year Liability 5,137,812 $ 4,486,684 $
Current-Year Claims and Changes in Estimates 4,232,232 3,607,841 Claim Payments (1,056,680) (2,956,713)
Balance at Fiscal Year End 8,313,364 $ 5,137,812 $

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Packet Pg. 126 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(89)
NOTE 12 COMMITMENTS AND CONTINGENCIES (CONTINUED)
Self-Insurance Payable (Continued)
There have been no significant changes in insurance coverage from the prior year. During the past three fiscal years, the amount of settlements has not exceeded the amount of insurance coverage.

Litigation
There are several lawsuits pending against the City. The outcome and eventual liability of the City, if any, in these cases is not known at this time. Management estimates that the potential claims against the City, not covered by insurance or self-insurance reserves, resulting from such litigation would not materially affect the financial statements of the City.

NOTE 13 SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY
Cash and Investments
Cash and investments reported in the accompanying Successor Agency of the Former Redevelopment Agency financial statements consisted of the following:

Cash and Investments 2,062,350 $
Long-Term Liabilities
The following debt was transferred from the Redevelopment Agency to the Successor Agency as of February 1, 2012, as a result of the dissolution. A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2021, is as follows:

Due Due in
Balance Balance Within More Than
June 30, 2020 Additions Deletions June 30, 2021 One Year One Year Tax Allocation Bonds:

Refunding Bonds,
Series 2015 11,600,000 $ - $ (1,230,000) $ 10,370,000 $ 1,295,000 $ 9,075,000 $ Unamortized Discounts 1,435,020 - (86,971) 1,348,049 - 1,348,049 Total 13,035,020 $ - $ (1,316,971) $ 11,718,049 $ 1,295,000 $ 10,423,049 $

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Packet Pg. 127 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(90)
NOTE 13 SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT

AGENCY (CONTINUED)
Tax Allocation Refunding Bonds 2015 Series
On July 8, 2015, the City issued $18,925,000 of Series 2015 Tax Allocation Refunding Bonds. These refunding bonds were issued to advance refund the outstanding balance on the Series 1998 A and B bonds, 1999 Series bonds, 2004 Series A bonds and note payable – CIEDB. The bonds consist of serial bonds with annual maturity dates from August 1, 2016 through August 1, 2031, with interest rates ranging from 2.00% to 3.625% and term bonds of $1,365,000 with an interest rate of 4.00% maturing on August 1, 2036.

At June 30, 2021, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
2022 1,295,000 $ 457,762 $ 1,752,762 $
2023 1,215,000 395,013 1,610,013
2024 1,060,000 338,158 1,398,158
2025 1,120,000 283,638 1,403,638
2026 1,170,000 226,388 1,396,388
2027-2031 2,895,000 505,063 3,400,063
2032-2036 1,320,000 193,731 1,513,731
2037 295,000 5,900 300,900
Total 10,370,000 $ 2,405,653 $ 12,775,653 $

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Packet Pg. 128 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) (91)

REQUIRED SUPPLEMENTARY INFORMATION

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Packet Pg. 129 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY

AND RELATED RATIOS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *
(92)
Safety
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Period June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Plan's Proportion of the Net
Pension Liability 0.95962% 0.94376% 0.933270% 0.913560% Plan's Proportionate Share of the
Net Pension Liability 63,933,056 $ 58,914,788 $ 54,759,875 $ 53,943,082 $ Plan's Covered Payroll 8,620,874 $ 9,579,273 $ 9,299,618 $ 8,523,558 $ Plan's Proportionate Share of the Net
Pension Liability as a Percentage of
Covered Payroll 741.61% 615.02% 588.84% 632.87%
Plan's Proportionate Share of the Fiduciary
Net Position as a Percentage of the Plan's
Total Pension Liability 68.91% 75.26% 75.26% 73.31%
Plan's Proportionate Share of Aggregate
Employer Contributions 7,334,118 $ 6,142,392 $ 5,726,963 $ 4,596,046 $ Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

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Packet Pg. 130 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY (CONTINUED)

AND RELATED RATIOS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *
(93)
Fiscal Year Ended
Measurement Period
Plan's Proportion of the Net
Pension Liability
Plan's Proportionate Share of the
Net Pension Liability
Plan's Covered Payroll
Plan's Proportionate Share of the Net
Pension Liability as a Percentage of
Covered Payroll
Plan's Proportionate Share of the Fiduciary
Net Position as a Percentage of the Plan's
Total Pension Liability
Plan's Proportionate Share of Aggregate
Employer Contributions
Safety
June 30, 2017 June 30, 2016 June 30, 2015
June 30, 2016 June 30, 2015 June 30, 2014

0.902780% 0.887770% 0.819020%
$ 36,579,955 47,315,229 $ 30,721,081 $
$ 8,572,102 7,954,010 $ 7,813,817 $
594.86% 426.73% 393.16%

74.06% 78.40% 80.99%
$ 4,428,878 4,379,222 $ 3,704,405 $
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

2.a
Packet Pg. 131 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *
(94)
Safety
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Contractually Required Contribution
(Actuarially Determined) 5,958,971 $ 5,255,476 $ 4,437,898 $ 3,908,198 $ Contributions in Relation to
the Actuarially Determined
Contributions (5,958,971) (5,255,476) (4,437,898) (3,908,198) Contribution Deficiency (Excess) - $ - $ - $ - $
Covered Payroll 9,590,910 $ 8,620,874 $ 9,579,273 $ 9,299,618 $ Contributions as a Percentage
of Covered Payroll 62.13% 60.96% 46.33% 42.03%
Notes to Schedule:

Valuation Date 6/30/2018 6/30/2017 6/30/2016 6/30/2015
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1)
Asset Valuation Method Market Value Market Value Fair Value Fair Value Inflation 2.625% 2.625% 2.75% 2.75%
Salary Increases (2) (2) (2) (2)
Investment Rate of Return 7.25% (3) 7.25% (3) 7.375% (3) 7.50% (3) Retirement Age (4) (4) (4) (4)
Mortality (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 3% at 50 retirement age 50, 2% at 50 retirement age 50 - 57, and 2.7% at 57 retirement age 50-57 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

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Packet Pg. 132 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS (CONTINUED)
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *
(95)
Fiscal Year Ended
Contractually Required Contribution
(Actuarially Determined)
Contributions in Relation to
the Actuarially Determined
Contributions
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage
of Covered Payroll
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Safety
June 30, 2017 June 30, 2016 June 30, 2015
$ 3,081,204 3,319,478 $ 2,451,024 $
(3,081,204) (3,319,478) (2,451,024)
$ - - $ - $
$ 7,954,010 8,523,558 $ 8,572,102 $

38.94% 38.74% 28.59%
6/30/2014 6/30/2013 6/30/2012
Entry Age Entry Age Entry Age
(1) (1) (1)
Fair Value Fair Value 15 Year
Smoothed
Market Method

2.75% 2.75% 2.75%
(2) (2) (2)

7.50% (3) 7.50% (3) 7.50% (3)
(4) (4) (4)
(5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 3% at 50 retirement age 50, 2% at 50 retirement age 50 - 57, and 2.7% at 57 retirement age 50-57 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

2.a
Packet Pg. 133 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN NET PENSION LIABILITY
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *
(96)
Miscellaneous
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Period June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total Pension Liability:

Service Cost 2,461,858 $ 2,493,798 $ 2,509,394 $ 2,441,303 $ Interest on Total Pension Liability 11,011,405 10,683,159 10,127,309 9,698,932 Differences Between Expected and
Actual Experience (838,202) 2,325,332 1,242,908 19,319
Changes in Assumptions - - (759,649) 8,163,980
Changes in Benefits - - - -
Benefit Payments, Including Refunds of
Employee Contributions (8,093,554) (7,370,298) (6,989,911) (6,342,617) Net Change in Total Pension Liability 4,541,507 8,131,991 6,130,051 13,980,917 Total Pension Liability - Beginning of Year 157,659,720 149,527,729 143,397,678 129,416,761 Total Pension Liability - End of Year (a) 162,201,227 $ 157,659,720 $ 149,527,729 $ 143,397,678 $ Plan Fiduciary Net Position:

Net Plan to Plan Resource Movement - $ - $ (249) $ - $
Miscellaneous Expenses - 249 (302,584) -
Contributions - Employer 4,112,145 3,464,809 2,954,354 2,806,234 Contributions - Employee 1,020,294 1,090,119 1,076,405 1,079,751 Net Investment Income 5,522,127 6,981,787 8,526,707 10,436,125 Benefit Payments (8,093,554) (7,370,298) (6,989,911) (6,342,617) Administrative Expense (157,114) (76,613) (159,337) (139,393) Net Change in Plan Fiduciary Net Position 2,403,898 4,090,053 5,105,385 7,840,100 Plan Fiduciary Net Position - Beginning of Year 111,447,536 107,357,483 102,252,098 94,411,998 Plan Fiduciary Net Position - End of Year (b) 113,851,434 $ 111,447,536 $ 107,357,483 $ 102,252,098 $ Net Pension Liability - Ending (a)-(b) 48,349,793 $ 46,212,184 $ 42,170,246 $ 41,145,580 $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 70.19% 70.69% 71.80% 71.31%
Covered Payroll 12,886,815 $ 13,638,600 $ 13,726,400 $ 14,021,318 $ Net Pension Liability as Percentage of
Covered Payroll 375.19% 338.83% 307.22% 293.45%
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

2.a
Packet Pg. 134 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN NET PENSION LIABILITY (CONTINUED) CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *
(97)
Fiscal Year Ended
Measurement Period
Total Pension Liability:

Service Cost
Interest on Total Pension Liability
Differences Between Expected and
Actual Experience
Changes in Assumptions
Changes in Benefits
Benefit Payments, Including Refunds of
Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning of Year
Total Pension Liability - End of Year (a)
Plan Fiduciary Net Position:

Net Plan to Plan Resource Movement
Miscellaneous Expenses
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments
Administrative Expense
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning of Year
Plan Fiduciary Net Position - End of Year (b)
Net Pension Liability - Ending (a)-(b)
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
Covered Payroll
Net Pension Liability as Percentage of
Covered Payroll
Miscellaneous
June 30, 2017 June 30, 2016 June 30, 2015
June 30, 2016 June 30, 2015 June 30, 2014
$ 2,030,905 2,173,034 $ 1,819,120 $
8,828,015 9,339,587 8,469,591
(144,763) 1,753,280 -
(2,174,145) - -
- - -
(5,801,181) (6,190,901) (5,408,188)
2,738,831 7,075,000 4,880,523
119,602,930 122,341,761 114,722,407
$ 122,341,761 129,416,761 $ 119,602,930 $
$ - - $ - $
- - -
2,266,067 2,601,938 1,634,990
1,098,948 1,054,638 926,763
2,151,777 507,989 14,562,640
(5,801,181) (6,190,901) (5,408,188)
(131,597) (58,810) -
(415,986) (2,085,146) 11,716,205
96,913,130 96,497,144 85,196,925
$ 96,497,144 94,411,998 $ 96,913,130 $
$ 25,844,617 35,004,763 $ 22,689,800 $

72.95% 78.88% 81.03%
$ 13,135,088 12,803,630 $ 11,068,462 $
273.40% 196.76% 205.00%
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

2.a
Packet Pg. 135 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *
(98)
Miscellaneous
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Contr Contractually Required Contribution
(Actuarially Determined) 4,593,240 $ 4,114,285 $ 3,452,712 $ 2,941,634 $ Contributions in Relation to
the Actuarially Determined
Contributions (4,593,240) (4,114,285) (3,452,712) (2,941,634) Contribution Deficiency (Excess) - $ - $ - $ - $
Covered Payroll 13,598,995 $ 12,886,815 $ 13,638,600 $ 13,726,400 $ Contributions as a Percentage
of Covered Payroll 33.78% 31.93% 25.32% 21.43%
Notes to Schedule:

Valuation Date 6/30/2018 6/30/2017 6/30/2016 6/30/2015
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1)
Asset Valuation Method Market Value Market Value Fair Value Fair Value Inflation 2.625% 2.625% 2.75% 2.75%
Salary Increases (2) (2) (2) (2)
Investment Rate of Return 7.25% (3) 7.25% (3) 7.375% (3) 7.50% (3) Retirement Age (4) (4) (4) (4)
Mortality (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 2.0% at 55 retirement age from 50-67, 2% at 62 retirement age 52-67 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

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Packet Pg. 136 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS (CONTINUED)
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *
(99)
Fiscal Year Ended
Contr Contractually Required Contribution
(Actuarially Determined)
Contributions in Relation to
the Actuarially Determined
Contributions
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage
of Covered Payroll
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Miscellaneous
June 30, 2017 June 30, 2016 June 30, 2015
$ 2,504,134 2,734,651 $ 2,258,495 $
(2,504,134) (2,734,651) (2,258,495)
$ - - $ - $
$ 12,803,630 14,021,318 $ 13,135,088 $

19.50% 19.56% 17.19%
6/30/2014 6/30/2013 6/30/2012
Entry Age Entry Age Entry Age
(1) (1) (1)
Fair Value Fair Value 15 Year
Smoothed
Market Method

2.75% 2.75% 2.75%
(2) (2) (2)

7.50% (3) 7.50% (3) 7.50% (3)
(4) (4) (4)
(5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 2.0% at 55 retirement age from 50-67, 2% at 62 retirement age 52-67 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

2.a
Packet Pg. 137 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS

OTHER POST-EMPLOYMENT BENEFITS PLAN
LAST TEN FISCAL YEARS *
(100)
Fiscal Year End June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability:

Service Cost 1,921,819 $ 1,233,655 $ 1,197,722 $ 1,308,041 $ Interest on Total OPEB Liability 1,288,268 1,097,960 1,051,619 916,545 Differences Between Expected and Actual
Experience - 6,245,865 - -
Changes in Assumptions 3,874,473 1,968,572 (346,225) (1,977,837) Benefit Payments, Including Refunds of
Member Contributions (1,825,760) (1,588,495) (1,408,943) (1,322,951) Net Change in Total OPEB Liability 5,258,800 8,957,557 494,173 (1,076,202) Total OPEB Liability - Beginning of Year 39,888,443 30,930,886 30,436,713 31,512,915 Total OPEB Liability - Ending (a)-(b) 45,147,243 $ 39,888,443 $ 30,930,886 $ 30,436,713 $ Covered - Employee Payroll 22,391,564 $ 23,216,582 $ 23,026,018 $ 22,544,876 $ Total OPEB Liability as Percentage of
Covered - Employee Payroll 201.63% 171.81% 134.33% 135.01% Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30 2018 to June 30, 2019:

The discount rate was increased from 3.40% to 3.50%
From fiscal year June 30 2019 to June 30, 2020:

The discount rate was reduced from 3.50% to 3.15%
The inflation rate was reduced from 2.75% to 2.50%
From fiscal year June 30 2020 to June 30, 2021:

The discount rate was reduced from 3.15% to 2.44%
* Fiscal year 2018 was the first year of implementation and therefore only four years are shown.

2.a
Packet Pg. 138 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) (101)

SUPPLEMENTARY INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

2.a
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Packet Pg. 140 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(103)
Special Revenue Funds. Are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects), that are restricted to expenditures for special purposes. The following funds have been classified as other governmental funds:

Gas Tax Fund – To account for monies received and expended from State Gas Tax allocations.

Community Child Care Fund – To account for monies received and expended from State Department of Education.

Library Grant Fund – To account for monies received and expended from various grant sources.

Community Development Block Grant Fund – To account for monies received and expended by the City as a participant in the Federal Community Development Block Grant Program.

State Traffic Relief Fund – To account for monies received from AB2928 for street pavement maintenance, rehabilitation and reconstruction of traffic control devices.

Asset Seizure Fund – To account for monies received and property seized as a result of judicial forfeitures.

Air Quality Fund – To account for monies received from AQMD for Alternate Fuel Program and Trip Reduction.

Drug/Gang Intervention Fund – To account for monies received from Asset Seizure for anti-gang education.

Host City Fees Fund – To account for monies received and expended from County of San Bernardino for hosting the County landfill.

Storm Water Fund – To account for monies received and expended for the maintenance of storm drains.

Local Transportation Fund – To account for monies received from a portion of sales tax revenue restricted to fund transportation related activities.

New Facilities Fund – To account for monies received from new development dedicated to building of new Public Safety and Library facilities.

Civic Center Development Fee Fund – To account for monies received from new development dedicated to building of a new civic center facility.

Fire Facility Development Fee Fund – To account for monies received from new development dedicated to building of new fire facility.

Police Facility Development Fee Fund – To account for to account for monies received from new development dedicated to building of new police facility.

2.a
Packet Pg. 141 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(104)
ViTep Fund – this fund was setup using a grant from the Office of Traffic Safety to tow cars belonging to unlicensed drivers within the City. For continuation of the program revenue is now derived from citation of traffic violators within the City.

Miscellaneous Grants Fund – To account for monies received and expended from various grant sources.

Housing Authority Fund – To account for activities related to protecting local housing funds and programs, providing new revenue opportunities for affordable housing programs, promoting public safety and welfare, and ensuring decent, safe, sanitary and affordable housing accommodations to persons of low income within the City.

Debt Service Funds. Are used to account for the accumulation of resources for, and the payment of, long term debt principal, interest and related costs other than those being financed by proprietary funds.

Public Financing Authority (PFA) Fund – This fund is used to accumulate resources for the payment of principal and interest on long term debt for the City.

Taxable Pension Funding Bonds Fund – This fund is used to accumulate resources for the payment of principal and interest on the amount borrowed for purposes of funding the City’s enterprise funds’ previously unfunded pension liability.

Capital Projects Funds. Are used to account for financial resources to be used for the acquisition or construction of major facilities other than those financed by Proprietary, Special Assessment and/or Trust Funds. The following funds have been classified as other governmental funds.

Capital Improvements Fund – To account for the General City capital projects. The funding for these projects is primarily from Measure I, Gas Tax and the General Fund.

Development Fees Fund – To account for funds collected from developers for capital infrastructure projects within the development.

Colton Crossing Fund – To account for funds relating to the Laurel/Hunts Lane Separation Project which are funded by Local Stimulus Funds, Proposition 42, Traffic Relief Funds and Traffic Impact Fees.

2.a
Packet Pg. 142 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) (105)

THIS PAGE INTENTIONALLY LEFT BLANK

2.a
Packet Pg. 143 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(106)
Special Revenue Funds
Community
Community Development State
Child Library Block Traffic Asset
Gas Tax Care Grant Grant Relief Seizure
ASSETS
Cash and Investments - $ 97,246 $ 32,053 $ - $ 603,913 $ 370,424 $ Receivables:

Accounts - 893 - 13,593 - -
Taxes - - - - 97,799 -
Accrued Interest - 81 21 - 704 268
Due from Other Governments 138,355 13,856 - 264,899 - - Due from Other Funds - - 4,140 - - -
Land Held for Resale - - - - - -
Restricted Assets:

Cash and Investments - - - - - 64,074
Cash and Investments with
Fiscal Agents - - - - - -
Total Assets 138,355 $ 112,076 $ 36,214 $ 278,492 $ 702,416 $ 434,766 $

LIABILITIES
Accounts Payable 94,250 $ 40,771 $ 2,687 $ 112,383 $ 47,074 $ - $ Unearned Revenues - 149,946 - - - -
Due to Other Funds 56,228 - - 166,673 - -
Total Liabilities 190,717 150,478 2,687 279,056 47,074 -

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues - - - 264,899 - -
Total Deferred Inflows
of Resources - - - 264,899 - -

FUND BALANCES (DEFICITS)
Restricted:

Public Safety - - - - - 434,766
Capital Projects - - - - 655,342 -
Debt Service - - - - - -
Education - - 33,527 - - -
Affordable Housing - - - - - -
Air Quality Projects - - - - - -
Unassigned (12,123) (78,641) - (265,463) - -
Total Fund Balances (Deficits) (12,123) (78,641) 33,527 (265,463) 655,342 434,766 Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances 138,355 $ 112,076 $ 36,214 $ 278,492 $ 702,416 $ 434,766 $

2.a
Packet Pg. 144 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(107)
ASSETS
Cash and Investments
Receivables:

Accounts
Taxes
Accrued Interest
Due from Other Governments
Due from Other Funds
Land Held for Resale
Restricted Assets:

Cash and Investments
Cash and Investments with
Fiscal Agents
Total Assets

LIABILITIES
Accounts Payable
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues
Total Deferred Inflows
of Resources

FUND BALANCES (DEFICITS)
Restricted:

Public Safety
Capital Projects
Debt Service
Education
Affordable Housing
Air Quality Projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances
Special Revenue Funds
Host
Air Drug/Gang City Storm Local New
Quality Intervention Fees Water Transportation Facilities $ 14,566 572,528 $ 1,751,715 $ 1,302,118 $ 2,250,276 $ 375,929 $ - 136,000 - - 2,317 -
- - - 14,146 - -
9 358 1,473 820 1,604 230
- 36,089 178,359 - 356,132 -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
$ 14,575 744,975 $ 1,931,547 $ 1,317,084 $ 2,610,329 $ 376,159 $ $ - - $ 49,019 $ 29,168 $ 36,406 $ - $
- - - - - -
- - - - - -
- - 49,019 29,168 36,406 -
- - - - 122,941 -
- - - - 122,941 -
14,575 - - - - -
- - 1,882,528 1,287,916 2,450,982 376,159
- - - - - -
- - - - - -
- - - - - -
- 744,975 - - - -
- - - - - -
14,575 744,975 1,882,528 1,287,916 2,450,982 376,159
$ 14,575 744,975 $ 1,931,547 $ 1,317,084 $ 2,610,329 $ 376,159 $

2.a
Packet Pg. 145 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(108)
ASSETS
Cash and Investments
Receivables:

Accounts
Taxes
Accrued Interest
Due from Other Governments
Due from Other Funds
Land Held for Resale
Restricted Assets:

Cash and Investments
Cash and Investments with
Fiscal Agents
Total Assets

LIABILITIES
Accounts Payable
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues
Total Deferred Inflows
of Resources

FUND BALANCES (DEFICITS)
Restricted:

Public Safety
Capital Projects
Debt Service
Education
Affordable Housing
Air Quality Projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances
Special Revenue Funds
Civic Center Fire Facility Police Facility
Development Development Development Miscellaneous Housing Fee Fee Fee ViTep Grants Authority
$ 298,234 123,096 $ 385,220 $ 203,439 $ 535,297 $ 836,052 $ - - - - 155,555 32,272
- - - - - -
181 76 234 125 445 570
- - - - 708,456 -
- - - - - -
- - - - - 84,131
- - - - - -
- - - - - -
$ 298,415 123,172 $ 385,454 $ 203,564 $ 1,399,753 $ 953,025 $ $ - - $ - $ - $ 237,886 $ - $
- - - - 674,412 -
- - - - - -
- - - - 912,298 -
- - - - 708,456 -
- - - - 708,456 -
- - - 203,564 - -
298,415 123,172 385,454 - - -
- - - - - -
- - - - - -
- - - - - 953,025
- - - - - -
- - - - (221,001) -
298,415 123,172 385,454 203,564 (221,001) 953,025
$ 298,415 123,172 $ 385,454 $ 203,564 $ 1,399,753 $ 953,025 $

2.a
Packet Pg. 146 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(109)
ASSETS
Cash and Investments
Receivables:

Accounts
Taxes
Accrued Interest
Due from Other Governments
Due from Other Funds
Land Held for Resale
Restricted Assets:

Cash and Investments
Cash and Investments with
Fiscal Agents
Total Assets

LIABILITIES
Accounts Payable
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues
Total Deferred Inflows
of Resources

FUND BALANCES (DEFICITS)
Restricted:

Public Safety
Capital Projects
Debt Service
Education
Affordable Housing
Air Quality Projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances
Debt Service Funds Capital Projects Funds
Taxable Total
Public Pension Other
Financing Funding Capital Development Colton Governmental Authority Bonds Improvements Fees Crossing Funds
$ 75,561 116,288 $ 120,724 $ 13,189,329 $ 898,026 $ 24,152,034 $ - - 3,033 - - 343,663
- - - - - 111,945
- 72 559 8,097 559 16,486
- - 3,616 - - 1,699,762
- - - - - 4,140
- - - - - 84,131
- - - - - 64,074
1,655,068 914,988 - - - 2,570,056
$ 1,730,629 1,031,348 $ 127,932 $ 13,197,426 $ 898,585 $ 29,046,291 $ $ - - $ 40,803 $ 41,886 $ 7,188 $ 739,521 $
- - - - - 824,358
- - - - - 222,901
- - 40,803 41,886 7,188 1,786,780
- - 3,616 - - 1,099,912
- - 3,616 - - 1,099,912
- - - - - 652,905
- - 83,513 13,155,540 891,397 21,590,418
1,730,629 1,031,348 - - - 2,761,977
- - - - - 33,527
- - - - - 953,025
- - - - - 744,975
- - - - - (577,228)
1,730,629 1,031,348 83,513 13,155,540 891,397 26,159,599 $ 1,730,629 1,031,348 $ 127,932 $ 13,197,426 $ 898,585 $ 29,046,291 $

2.a
Packet Pg. 147 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(110)
Special Revenue Funds
Community
Community Development State
Child Library Block Traffic Asset
Gas Tax Care Grant Grant Relief Seizure

REVENUES
Taxes - $ - $ - $ - $ - $ - $
Intergovernmental 1,220,301 888,416 63,834 342,157 994,271 - Charges for Services - 31,448 - - - -
Use of Money and Property 22 (176) (105) - 232 213
Fines and Forfeitures - - - - - 4,785
Miscellaneous - 23,585 - - - -
Total Revenues 1,220,323 943,273 63,729 342,157 994,503 4,998

EXPENDITURES
Current:

General Government - - - - - -
Public Safety - - - - - -
Community Services - 995,726 88,426 - - -
Public Works 1,162,006 - - - - -
Capital Outlay - - - 229,067 1,012,312 -
Debt Service:

Principal Retirement - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 1,162,006 995,726 88,426 229,067 1,012,312 - Excess of Revenues Over
(Under) Expenditures 58,317 (52,453) (24,697) 113,090 (17,809) 4,998

OTHER FINANCING SOURCES
(USES)
Transfers In - - 8,045 - - -
Transfers Out (33,634) (18,970) - (88,610) - -
Total Other Financing
Sources (Uses) (33,634) (18,970) 8,045 (88,610) - -

NET CHANGE IN FUND
BALANCES (71,423) 24,683 (16,652) 24,480 (17,809) 4,998 Fund Balances (Deficits) - Beginning
of Year (36,806) (7,218) 50,179 (289,943) 673,151 429,768

FUND BALANCES (DEFICITS) -
END OF YEAR $ (78,641) (12,123) $ 33,527 $ (265,463) $ 655,342 $ 434,766 $

2.a
Packet Pg. 148 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(111)

REVENUES
Taxes
Intergovernmental
Charges for Services
Use of Money and Property
Fines and Forfeitures
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Community Services
Public Works
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures
Excess of Revenues Over
(Under) Expenditures

OTHER FINANCING SOURCES
(USES)
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND

BALANCES
Fund Balances (Deficits) - Beginning
of Year

FUND BALANCES (DEFICITS) -

END OF YEAR
Special Revenue Funds
Host
Air Drug/Gang City Storm Local New
Quality Intervention Fees Water Transportation Facilities $ - - $ - $ 621,607 $ - $ - $
845 206,666 672,619 - 1,203,833 -
- - - - - 55,682
11 390 2,626 691 1,366 534
- - - - - -
- - - - - -
856 207,056 675,245 622,298 1,205,199 56,216
- - - - - -
- - - - - -
- - - - - -
- 16,129 - 433,226 - -
- 93,527 1,076,576 - 906,868 -
- - - - - -
- - - - - -
- 109,656 1,076,576 433,226 906,868 -
856 97,400 (401,331) 189,072 298,331 56,216
- - - - - -
- - - (8,845) (15,776) -
- - - (8,845) (15,776) -
856 97,400 (401,331) 180,227 282,555 56,216
13,719 647,575 2,283,859 1,107,689 2,168,427 319,943
$ 14,575 744,975 $ 1,882,528 $ 1,287,916 $ 2,450,982 $ 376,159 $

2.a
Packet Pg. 149 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(112)

REVENUES
Taxes
Intergovernmental
Charges for Services
Use of Money and Property
Fines and Forfeitures
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Community Services
Public Works
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures
Excess of Revenues Over
(Under) Expenditures

OTHER FINANCING SOURCES
(USES)
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND

BALANCES
Fund Balances (Deficits) - Beginning
of Year

FUND BALANCES (DEFICITS) -

END OF YEAR
Special Revenue Funds
Civic Center Fire Facility Police Facility
Development Development Development Miscellaneous Housing Fee Fee Fee ViTep Grants Authority
$ - - $ - $ - $ - $ - $
- - - - 1,628,603 -
70,960 - 93,215 43,296 - -
468 136 617 (39) 3,222 92,283
- - - - - -
- - - - - -
71,428 136 93,832 43,257 1,631,825 92,283
- - - - - -
- - - 98,566 1,138,810 -
- - - - - -
- - - - - -
- - - - 418,539 -
- - - - - -
- - - - - 91,500
- - - 98,566 1,557,349 91,500
71,428 136 93,832 (55,309) 74,476 783
- - - - - -
- - - - (110,296) -
- - - - (110,296) -
71,428 136 93,832 (55,309) (35,820) 783
226,987 123,036 291,622 258,873 (185,181) 952,242
$ 298,415 123,172 $ 385,454 $ 203,564 $ (221,001) $ 953,025 $

2.a
Packet Pg. 150 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(113)

REVENUES
Taxes
Intergovernmental
Charges for Services
Use of Money and Property
Fines and Forfeitures
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Community Services
Public Works
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures
Excess of Revenues Over
(Under) Expenditures

OTHER FINANCING SOURCES
(USES)
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND

BALANCES
Fund Balances (Deficits) - Beginning
of Year

FUND BALANCES (DEFICITS) -

END OF YEAR
Debt Service Funds Capital Projects Funds
Taxable Total
Public Pension Other
Financing Funding Capital Development Colton Governmental Authority Bonds Improvements Fees Crossing Funds
$ - - $ - $ - $ - $ 621,607 $
- - 16,451 - - 7,237,996
- - - 1,251,729 - 1,546,330
108 434 (853) 18,078 1,476 121,734
- - - - - 4,785
5,121 - - 189,115 - 217,821
5,229 434 15,598 1,458,922 1,476 9,750,273
2,968 4,820 - - - 7,788
- - - - - 1,237,376
- - - - - 1,084,152
- - - 150,685 - 1,762,046
- - 481,313 297,454 16,797 4,532,453
1,070,000 515,000 - - - 1,585,000
925,592 388,995 - - - 1,406,087
1,998,560 908,815 481,313 448,139 16,797 11,614,902
(1,993,331) (908,381) (465,715) 1,010,783 (15,321) (1,864,629) 2,093,799 903,995 158,750 - - 3,164,589
- - (1,250,000) (12,505) - (1,538,636)
2,093,799 903,995 (1,091,250) (12,505) - 1,625,953
100,468 (4,386) (1,556,965) 998,278 (15,321) (238,676)
1,630,161 1,035,734 1,640,478 12,157,262 906,718 26,398,275 $ 1,730,629 1,031,348 $ 83,513 $ 13,155,540 $ 891,397 $ 26,159,599 $

2.a
Packet Pg. 151 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(114)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ (36,806) (36,806) $ (36,806) $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,318,028 1,318,028 1,220,301 (97,727) Use of Money and Property - - 22 22
Amounts Available for
Appropriations 1,281,222 1,281,222 1,183,517 (97,705)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works 542,104 1,261,619 1,162,006 99,613
Transfers Out 33,634 33,634 33,634 -
Total Charges to Appropriations 575,738 1,295,253 1,195,640 99,613

BUDGETARY FUND BALANCE - END
OF YEAR $ (14,031) 705,484 $ (12,123) $ 1,908 $

2.a
Packet Pg. 152 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

COMMUNITY CHILD CARE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(115)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ (7,218) (7,218) $ (7,218) $ - $

RESOURCES (INFLOWS)
Taxes - - - -
Intergovernmental - 946,599 888,416 (58,183)
Charges for Services - 28,000 31,448 3,448
Use of Money and Property - - (176) (176)
Miscellaneous - 42,998 23,585 (19,413)
Amounts Available for
Appropriations (7,218) 1,010,379 936,055 (74,324)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Community Services 978,370 1,054,684 995,726 58,958
Transfers Out 18,970 18,970 18,970 -
Total Charges to Appropriations 997,340 1,073,654 1,014,696 58,958

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ (63,275) (1,004,558) $ (78,641) $ (15,366) $

2.a
Packet Pg. 153 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

LIBRARY GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(116)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 50,179 50,179 $ 50,179 $ - $

RESOURCES (INFLOWS)
Intergovernmental 18,360 87,410 63,834 (23,576)
Use of Money and Property - - (105) (105)
Transfers In 23,000 23,000 8,045 (14,955)
Amounts Available for
Appropriations 91,539 160,589 121,953 (38,636)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Community Services 2,500 129,940 88,426 41,514
Total Charges to Appropriations 2,500 129,940 88,426 41,514

BUDGETARY FUND BALANCE - END
OF YEAR $ 30,649 89,039 $ 33,527 $ 2,878 $

2.a
Packet Pg. 154 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(117)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR $ (289,943) (289,943) $ (289,943) $ - $

RESOURCES (INFLOWS)
Intergovernmental 401,124 1,637,576 342,157 (1,295,419) Amounts Available for
Appropriations 111,181 1,347,633 52,214 (1,295,419)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 340,955 963,159 229,067 734,092
Transfers Out 60,169 674,156 88,610 585,546
Total Charges to Appropriations 401,124 1,637,315 317,677 1,319,638

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ (289,682) (289,943) $ (265,463) $ 24,219 $

2.a
Packet Pg. 155 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

STATE TRAFFIC RELIEF SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(118)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 673,151 673,151 $ 673,151 $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,063,198 1,063,198 994,271 (68,927)
Use of Money and Property - 24,619 232 (24,387)
Amounts Available for
Appropriations 1,736,349 1,760,968 1,667,654 (93,314)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 1,027,274 1,220,440 1,012,312 208,128
Total Charges to Appropriations 1,027,274 1,220,440 1,012,312 208,128

BUDGETARY FUND BALANCE - END
OF YEAR $ 540,528 709,075 $ 655,342 $ 114,814 $

2.a
Packet Pg. 156 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

ASSET SEIZURE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(119)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 429,768 429,768 $ 429,768 $ - $

RESOURCES (INFLOWS)
Use of Money and Property - - 213 213
Fines and Forfeitures - - 4,785 4,785
Amounts Available for
Appropriations 429,768 429,768 434,766 4,998

BUDGETARY FUND BALANCE - END
OF YEAR $ 429,768 429,768 $ 434,766 $ 4,998 $

2.a
Packet Pg. 157 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

AIR QUALITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(120)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 647,575 647,575 $ 647,575 $ - $

RESOURCES (INFLOWS)
Intergovernmental 63,000 63,000 206,666 143,666
Use of Money and Property 1,500 10,000 390 (9,610)
Amounts Available for
Appropriations 712,075 720,575 854,631 134,056

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works 63,000 285,628 16,129 269,499
Capital Outlay - 93,527 93,527 -
Total Charges to Appropriations 63,000 379,155 109,656 269,499

BUDGETARY FUND BALANCE - END
OF YEAR $ 341,420 649,075 $ 744,975 $ 403,555 $

2.a
Packet Pg. 158 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

DRUG/GANG INTERVENTION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(121)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 13,719 13,719 $ 13,719 $ - $

RESOURCES (INFLOWS)
Taxes - - - -
Intergovernmental - - 845 845
Use of Money and Property - - 11 11
Amounts Available for
Appropriations 13,719 13,719 14,575 856

BUDGETARY FUND BALANCE - END
OF YEAR $ 13,719 13,719 $ 14,575 $ 856 $

2.a
Packet Pg. 159 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

HOST CITY FEES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(122)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 2,283,859 2,283,859 $ 2,283,859 $ - $

RESOURCES (INFLOWS)
Intergovernmental 507,083 533,083 672,619 139,536
Use of Money and Property 42,372 42,372 2,626 (39,746)
Amounts Available for
Appropriations 2,833,314 2,859,314 2,959,104 99,790

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Capital Outlay - 1,749,185 1,076,576 672,609
Total Charges to Appropriations - 1,749,185 1,076,576 672,609

BUDGETARY FUND BALANCE - END
OF YEAR $ 1,110,129 2,833,314 $ 1,882,528 $ 772,399 $

2.a
Packet Pg. 160 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

STORM WATER SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(123)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 1,107,689 1,107,689 $ 1,107,689 $ - $

RESOURCES (INFLOWS)
Taxes 610,815 610,815 621,607 10,792
Use of Money and Property 1,000 1,000 691 (309)
Amounts Available for
Appropriations 1,719,504 1,719,504 1,729,987 10,483

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works 620,972 633,449 433,226 200,223
Debt Service:

Transfers Out 8,845 8,845 8,845 -
Total Charges to Appropriations 629,817 642,294 442,071 200,223

BUDGETARY FUND BALANCE - END
OF YEAR $ 1,077,210 1,089,687 $ 1,287,916 $ 210,706 $

2.a
Packet Pg. 161 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

LOCAL TRANSPORTATION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(124)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 2,168,427 2,168,427 $ 2,168,427 $ - $

RESOURCES (INFLOWS)
Intergovernmental 793,650 793,650 1,203,833 410,183
Use of Money and Property 3,000 61,000 1,366 (59,634)
Amounts Available for
Appropriations 2,965,077 3,023,077 3,373,626 350,549

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 793,651 1,134,099 906,868 227,231
Transfers Out - 428,341 15,776 412,565
Total Charges to Appropriations 793,651 1,562,440 922,644 639,796

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ 1,460,637 2,171,426 $ 2,450,982 $ 990,345 $

2.a
Packet Pg. 162 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

NEW FACILITIES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(125)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 319,943 319,943 $ 319,943 $ - $

RESOURCES (INFLOWS)
Charges for Services 16,000 36,000 55,682 19,682
Use of Money and Property 600 3,000 534 (2,466)

BUDGETARY FUND BALANCE - END
OF YEAR $ 358,943 336,543 $ 376,159 $ 17,216 $

2.a
Packet Pg. 163 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

CIVIC CENTER DEVELOPMENT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(126)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 123,036 123,036 $ 123,036 $ - $

RESOURCES (INFLOWS)
Use of Money and Property - - 136 136

BUDGETARY FUND BALANCE - END
OF YEAR $ 123,036 123,036 $ 123,172 $ 136 $

2.a
Packet Pg. 164 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

FIRE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(127)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 226,987 226,987 $ 226,987 $ - $

RESOURCES (INFLOWS)
Charges for Services - - 70,960 70,960
Use of Money and Property - - 468 468

BUDGETARY FUND BALANCE - END
OF YEAR $ 226,987 226,987 $ 298,415 $ 71,428 $

2.a
Packet Pg. 165 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

POLICE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(128)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 291,622 291,622 $ 291,622 $ - $

RESOURCES (INFLOWS)
Charges for Services - - 93,215 93,215
Use of Money and Property - - 617 617

BUDGETARY FUND BALANCE - END
OF YEAR $ 291,622 291,622 $ 385,454 $ 93,832 $

2.a
Packet Pg. 166 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

VITEP SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(129)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 258,873 258,873 $ 258,873 $ - $

RESOURCES (INFLOWS)
Charges for Services - - 43,296 43,296
Use of Money and Property - - (39) (39)
Amounts Available for
Appropriations 258,873 258,873 302,130 43,257

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Safety 65,000 104,333 98,566 5,767
Total Charges to Appropriations 65,000 104,333 98,566 5,767

BUDGETARY FUND BALANCE - END
OF YEAR $ 154,540 193,873 $ 203,564 $ 49,024 $

2.a
Packet Pg. 167 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(130)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR $ (185,181) (185,181) $ (185,181) $ - $

RESOURCES (INFLOWS)
Intergovernmental 138,000 10,906,950 1,628,603 (9,278,347) Use of Money and Property - - 3,222 3,222
Amounts Available for
Appropriations (47,181) 10,721,769 1,446,644 (9,275,125)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Safety 131,225 3,982,443 1,138,810 2,843,633
Capital Outlay - 4,320,057 418,539 3,901,518
Transfers Out - 1,886,460 110,296 1,776,164
Total Charges to Appropriations 131,225 10,343,948 1,667,645 8,676,303

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ 377,821 (178,406) $ (221,001) $ (598,822) $

2.a
Packet Pg. 168 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(131)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 952,242 952,242 $ 952,242 $ - $

RESOURCES (INFLOWS)
Use of Money and Property - - 92,283 92,283
Amounts Available for
Appropriations 952,242 952,242 1,044,525 92,283

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Debt Service:

Interest and Fiscal Charges - - 91,500 (91,500)

BUDGETARY FUND BALANCE - END
OF YEAR $ 952,242 952,242 $ 953,025 $ 783 $

2.a
Packet Pg. 169 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

PUBLIC FINANCING AUTHORITY DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2021
(132)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 1,035,734 1,035,734 $ 1,035,734 $ - $

RESOURCES (INFLOWS)
Use of Money and Property 15,000 15,000 434 (14,566)
Transfers In 903,995 903,995 903,995 -
Amounts Available for
Appropriations 1,954,729 1,954,729 1,940,163 (14,566)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government - 4,950 4,820 130
Debt Service:

Principal Retirement - 515,000 515,000 -
Interest and Fiscal Charges - 388,995 388,995 -
Total Charges to Appropriations - 908,945 908,815 130

BUDGETARY FUND BALANCE - END
OF YEAR $ 1,045,784 1,954,729 $ 1,031,348 $ (14,436) $

2.a
Packet Pg. 170 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

TAXABLE PENSION FUNDING BONDS DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2021
(133)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 1,630,161 1,630,161 $ 1,630,161 $ - $

RESOURCES (INFLOWS)
Use of Money and Property 15,000 15,000 108 (14,892)
Miscellaneous 13,648 13,648 5,121 (8,527)
Transfers In 2,085,272 2,085,272 2,093,799 8,527
Amounts Available for
Appropriations 3,744,081 3,744,081 3,729,189 (14,892)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government 4,700 4,700 2,968 1,732
Debt Service:

Principal Retirement 1,070,000 1,070,000 1,070,000 -
Interest and Fiscal Charges 925,572 925,572 925,592 (20) Total Charges to Appropriations 2,000,272 2,000,272 1,998,560 1,712

BUDGETARY FUND BALANCE - END
OF YEAR $ 1,743,809 1,743,809 $ 1,730,629 $ (13,180) $

2.a
Packet Pg. 171 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
(134)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 1,640,478 1,640,478 $ 1,640,478 $ - $

RESOURCES (INFLOWS)
Intergovernmental - 201,658 16,451 (185,207)
Use of Money and Property - - (853) (853)
Transfers In - 2,575,977 158,750 (2,417,227)
Amounts Available for
Appropriations 1,640,478 4,418,113 1,814,826 (2,603,287)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Capital Outlay - 3,068,861 481,313 2,587,548
Transfers Out 1,250,000 1,250,000 1,250,000 -
Total Charges to Appropriations 1,250,000 4,318,861 1,731,313 2,587,548

BUDGETARY FUND BALANCE - END
OF YEAR $ 99,252 390,478 $ 83,513 $ (15,739) $

2.a
Packet Pg. 172 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

DEVELOPMENT FEES CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
(135)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 12,157,262 12,157,262 $ 12,157,262 $ - $

RESOURCES (INFLOWS)
Charges for Services 885,000 1,200,000 1,251,729 51,729 Use of Money and Property 14,000 52,000 18,078 (33,922) Miscellaneous 375,000 375,000 189,115 (185,885)
Amounts Available for
Appropriations 13,431,262 13,784,262 13,616,184 (168,078)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works - 210,376 150,685 59,691
Capital Outlay - 1,536,300 297,454 1,238,846
Transfers Out - 155,530 12,505 143,025
Total Charges to Appropriations - 1,902,206 460,644 1,441,562

BUDGETARY FUND BALANCE - END
OF YEAR $ 11,882,056 13,431,262 $ 13,155,540 $ 1,273,484 $

2.a
Packet Pg. 173 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

COLTON CROSSING CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
(136)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR $ 906,718 906,718 $ 906,718 $ - $

RESOURCES (INFLOWS)
Use of Money and Property - - 1,476 1,476
Amounts Available for
Appropriations 906,718 906,718 908,194 1,476

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay - 605,242 16,797 588,445
Total Charges to Appropriations - 605,242 16,797 588,445

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR $ 301,476 906,718 $ 891,397 $ 589,921 $

2.a
Packet Pg. 174 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

INTERNAL SERVICE FUNDS
JUNE 30, 2021
(137)
Internal Service Funds. Finance and account for goods and services provided by one City department to other City departments, or to other governments, on a cost-reimbursement basis, including depreciation. The City used the following Internal Service Funds:

Facility and Equipment Maintenance Fund – To account for the City’s buildings maintenance and utilities costs.

Information Services Fund – To account for the City’s information services.

Insurance Fund – To account for the City’s liabilities for claims and judgments.

Automotive Shop Fund – To account for the City’s fleet maintenance and replacement.

2.a
Packet Pg. 175 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2021
(138)
Governmental Activities - Internal Service Funds
Facility and
Equipment Information Automotive
Maintenance Services Insurance Shop Total
ASSETS
Current Assets:

Cash and Investments 2,887,314 $ 1,661,832 $ 6,901,717 $ 2,277,606 $ 13,728,469 $ Receivables:

Accounts - 2,449 - - 2,449
Accrued Interest 1,797 1,011 2,834 1,409 7,051
Prepaid Items 1,350 - - - 1,350
Restricted Cash and Investments - - 107,393 - 107,393
Total Current Assets 2,890,461 1,665,292 7,011,944 2,279,015 13,846,712 Capital Assets:

Capital Assets, Net of
Accumulated Depreciation 499,412 355,327 - 285,809 1,140,548 Net Capital Assets 499,412 355,327 - 285,809 1,140,548
Total Assets 3,389,873 2,020,619 7,011,944 2,564,824 14,987,260

LIABILITIES
Current Liabilities:

Accounts Payable 35,007 45,515 217,241 31,970 329,733
Accrued Compensated Absences 8,667 21,417 - 16,106 46,190 Accrued Claims and Judgments - - 2,442,420 - 2,442,420
Total Current Liabilities 43,674 66,932 2,659,661 48,076 2,818,343 Noncurrent Liabilities:

Accrued Compensated Absences 11,357 16,111 - 6,917 34,385 Accrued Claims and Judgments - - 5,870,944 - 5,870,944
Total Noncurrent Liabilities 11,357 16,111 5,870,944 6,917 5,905,329 Total Liabilities 55,031 83,043 8,530,605 54,993 8,723,672

NET POSITION
Net Investment In Capital Assets 499,412 355,327 - 278,967 1,133,706 Unrestricted 2,835,430 1,582,249 (1,518,661) 2,230,864 5,129,882 Total Net Position 3,334,842 $ 1,937,576 $ (1,518,661) $ 2,509,831 $ 6,263,588 $

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Packet Pg. 176 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
(139)
Governmental Activities - Internal Service Funds
Facility and
Equipment Information Automotive
Maintenance Services Insurance Shop Total

OPERATING REVENUES
Sales and Service Charges 900,064 $ 974,405 $ 6,684,857 $ 728,402 $ 9,287,728 $ Miscellaneous 31 - - - 31
Total Operating Revenues 900,095 974,405 6,684,857 728,402 9,287,759

OPERATING EXPENSES
Salaries and Benefits 382,635 402,319 237,476 260,053 1,282,483 Maintenance and Operations 320,955 326,031 1,071,968 260,536 1,979,490 Contractual Services 28,369 49,560 136,580 - 214,509
Claims and Benefits - - 4,278,225 - 4,278,225
Depreciation Expense 50,230 40,054 - 25,665 115,949
Total Operating Expenses 782,189 817,964 5,724,249 546,254 7,870,656 OPERATING INCOME (LOSS) 156,441 117,906 960,608 182,148 1,417,103

NONOPERATING REVENUES
Interest Revenue 1,754 412 5,133 1,271 8,570
Total Nonoperating Revenues 1,754 412 5,133 1,271 8,570 INCOME (LOSS) BEFORE TRANSFERS 156,853 119,660 965,741 183,419 1,425,673

TRANSFERS IN - - - - -
TRANSFERS OUT (19,436) (16,759) (10,474) (13,384) (60,053) CHANGE IN NET POSITION 137,417 102,901 955,267 170,035 1,365,620 Net Position - Beginning of Year 3,231,941 1,800,159 (2,473,928) 2,339,796 4,897,968 NET POSITION - END OF YEAR $ 1,937,576 3,334,842 $ (1,518,661) $ 2,509,831 $ 6,263,588 $

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Packet Pg. 177 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
(140)
Governmental Activities - Internal Service Funds
Facility and
Equipment Information Automotive
Maintenance Services Insurance Shop Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 900,095 $ 971,956 $ 6,685,209 $ 728,402 $ 9,285,662 $ Cash Paid to Suppliers for Goods and Services (476,215) (369,281) (2,389,995) (250,392) (3,485,883) Cash Paid to Employees for Services (379,314) (395,950) (237,476) (257,903) (1,270,643) Net Cash Provided (Used) by
Operating Activities 44,566 206,725 4,057,738 220,107 4,529,136

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Paid to Other Funds (16,759) (19,436) (10,474) (13,384) (60,053) Net Cash Used by Noncapital
Financing Activities (16,759) (19,436) (10,474) (13,384) (60,053)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (108,400) (207,117) - (112,400) (427,917) Net Cash Used by Capital and
Related Financing Activities (108,400) (207,117) - (112,400) (427,917)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 6,179 3,038 6,921 4,756 20,894
Net Cash Provided by
Investing Activities 6,179 3,038 6,921 4,756 20,894

NET CHANGE IN CASH AND CASH
EQUIVALENTS (16,790) (74,414) 4,054,185 99,079 4,062,060 Cash and Cash Equivalents - Beginning of Year 2,961,728 1,678,622 2,954,925 2,178,527 9,773,802

CASH AND CASH EQUIVALENTS -
END OF YEAR $ 1,661,832 2,887,314 $ 7,009,110 $ 2,277,606 $ 13,835,862 $

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)

BY OPERATING ACTIVITIES
Operating Income (Loss) 117,906 $ 156,441 $ 960,608 $ 182,148 $ 1,417,103 $ Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation Expense 50,230 40,054 - 25,665 115,949
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable - (2,449) 352 - (2,097) (Increase) Decrease in Prepaid Assets (1,350) - - - (1,350) Increase (Decrease) in Accounts Payable (125,541) 6,310 (78,774) 10,144 (187,861) Increase (Decrease) in Compensated Absences 3,321 6,369 - 2,150 11,840 Increase (Decrease) in Claims and Judgments - - 3,175,552 - 3,175,552 Net Cash Provided (Used) by
Operating Activities 44,566 $ 206,725 $ 4,057,738 $ 220,107 $ 4,529,136 $

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Packet Pg. 178 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

CUSTODIAL FUNDS
JUNE 30, 2021
(141)
Custodial Funds. Are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. Custodial Funds operate as a clearing mechanism. Cash resources are collected, held for a brief period and then distributed to the proper recipients. The City has a fiduciary responsibility for the assets, which it does not own. The following are classified as agency funds in the financial statements.

Assessment Districts Fund – To account for funds collected from Assessment Districts.

Evidence Fund – To account for monies seized by police as evidence.

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Packet Pg. 179 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2021
(142)
Assessment
Districts Evidence
Fund Fund Total
ASSETS
Cash and Investments 749,706 $ 219,474 $ 969,180 $
Receivables:

Taxes 4,079 - 4,079
Accrued Interest 475 - 475
Total Assets 754,260 219,474 973,734

LIABILITIES
Accounts Payable 18,992 - 18,992
Due to Other Governments 37,763 - 37,763
Total Liabilities 56,755 - 56,755

NET POSITION
Held In Trust for Other Individuals and Organizations 697,505 219,474 916,979 Total Net Position 697,505 $ 219,474 $ 916,979 $

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Packet Pg. 180 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2021
(143)
Assessment
Districts Evidence
Fund Fund Total

ADDITIONS
Taxes 520,645 $ - $ 520,645 $
Evidence Deposits - 7,700 7,700
Interest and Change in Fair Value of Investments 318 - 318 Total Additions 520,963 7,700 528,663

DEDUCTIONS
Administrative Expenses 524,025 - 524,025
Principal Payment 23,088 - 23,088
Interest Expense 8,479 - 8,479
Total Deductions 555,592 - 555,592
CHANGE IN NET POSITION 7,700 (34,629) (26,929)
Net Position - Beginning of Year, As Restated 732,134 211,774 943,908 NET POSITION - END OF YEAR $ 219,474 697,505 $ 916,979 $

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Packet Pg. 181 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2021
(144)
Private-Purpose Trust Funds. Are used to account for assets and related liabilities for the Cemetery Endowment Fund and former Redevelopment Agency.

Cemetery Endowment Fund – To account for donations made to the City for the Cemetery.

Successor Agency of the Former RDA – To account for the assets and liabilities of the former redevelopment agency and its 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.

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Packet Pg. 182 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF NET POSITION

ALL PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2021
(145)
Cemetery Successor
Endowment Agency of the
Fund Former RDA Total
ASSETS
Cash and Investments 900,783 $ 2,062,350 $ 2,963,133 $
Receivables:

Accounts 28,450 - 28,450
Accrued Interest 556 1,275 1,831
Restricted Assets:

Cash and Investments 336,320 - 336,320
Total Assets 1,266,109 2,063,625 3,329,734

LIABILITIES
Accrued Interest - 204,223 204,223
Deposits Payable 230,799 - 230,799
Long-Term Liabilities:

Due in One Year - 1,295,000 1,295,000
Due in More than One Year - 10,423,049 10,423,049
Total Liabilities 230,799 11,922,272 12,153,071

NET POSITION
Held In Trust for Endowment 1,035,310 - 1,035,310
Held In Trust for Other Purposes - (9,858,647) (9,858,647) Total Net Position 1,035,310 $ (9,858,647) $ (8,823,337) $

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Packet Pg. 183 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF CHANGES IN NET POSITION

ALL PRIVATE-PURPOSE TRUST FUNDS
YEAR ENDED JUNE 30, 2021
(146)
Cemetery Successor
Endowment Agency of the
Fund Former RDA Total

ADDITIONS
Contributions 43,240 $ - $ 43,240 $
Taxes - 1,790,565 1,790,565
Interest and Change in Fair Value of Investments 805 3 808 Total Additions 44,045 1,790,568 1,834,613

DEDUCTIONS
Administrative Expenses - 5,927 5,927
Interest Expense - 418,736 418,736
Contributions to Other Governments - 522,997 522,997
Total Deductions - 947,660 947,660
CHANGE IN NET POSITION 842,908 44,045 886,953
Net Position - Beginning of Year 991,265 (10,701,555) (9,710,290) NET POSITION - END OF YEAR $ (9,858,647) 1,035,310 $ (8,823,337) $

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Packet Pg. 184 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR) (147)

STATISTICAL SECTION
(UNAUDITED)

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Packet Pg. 186 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2021
(149)
This part of the City of Cerritos’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 says about the City’s overall financial health.

Contents Pages
Financial Trends 149 – 154
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 155 – 161
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 162 – 165
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information 166 – 167
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 168 – 170
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. The City implemented Statement 34 in 2004; schedules presenting government wide information include information beginning in that year.

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Packet Pg. 188 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(151)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities
Net Investment in capital assets 45,177,147 $ 48,178,795 $ 43,095,860 $ 46,899,623 $ 56,026,601 $ 56,241,790 $ 57,614,290 $ 60,205,081 $ 65,722,642 $ 68,923,235 $ Restricted 12,240,766 12,323,121 20,361,237 16,468,723 14,170,252 17,069,028 18,434,877 25,567,031 27,951,561 27,387,272 Unrestricted (10,150,820) (10,298,082) (22,553,661) (80,117,919) (81,162,735) (78,864,619) (94,872,475) (92,639,601) (94,410,149) (87,788,475) Total governmental activities net position 47,267,093 $ 50,203,834 $ 40,903,436 $ (16,749,573) $ (10,965,882) $ (5,553,801) $ (18,823,308) $ (6,867,489) $ (735,946) $ 8,522,032 $ Business-type activities Net Investment in capital assets 36,883,482 $ 39,894,840 $ 49,223,276 $ 44,938,671 $ 53,428,783 $ 54,049,081 $ 67,086,623 $ 67,651,026 $ 68,820,782 $ 67,274,292 $ Restricted 6,049,437 5,177,690 5,241,786 6,099,568 5,566,576 12,138,780 3,932,103 3,982,965 4,072,437 3,677,027 Unrestricted 47,841,422 51,854,773 57,726,136 52,154,989 51,134,616 49,189,201 47,080,519 56,113,738 61,100,251 70,685,437 Total business-type activities net position 90,774,341 $ 96,927,303 $ 112,191,198 $ 103,193,228 $ 110,129,975 $ 115,377,062 $ 118,099,245 $ 127,747,729 $ 133,993,470 $ 141,636,756 $ Primary government Net Investment in capital assets 82,060,629 $ 88,073,635 $ 92,319,136 $ 91,838,294 $ 109,455,384 $ 110,290,871 $ 124,700,913 $ 127,856,107 $ 134,543,424 $ 136,197,527 $ Restricted 18,290,203 17,500,811 25,603,023 22,568,291 19,736,828 29,207,808 22,366,980 29,549,996 32,023,998 31,064,299 Unrestricted 37,690,602 41,556,691 35,172,475 (27,962,930) (30,028,119) (29,675,418) (47,791,956) (36,525,863) (33,309,898) (17,103,038) Total primary government net position 138,041,434 $ 147,131,137 $ 153,094,634 $ 86,443,655 $ 99,164,093 $ 109,823,261 $ 99,275,937 $ 120,880,240 $ 133,257,524 $ 150,158,788 $ Notes:Per GASB 63, Net Assets have been replaced with Net Position for fiscal year 2013.

All descriptions have been changed to conform with this requirement.The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2004 Fiscal Year

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(152)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
ExpensesGovernmental activities:

General government 5,236,386 $ 8,262,086 $ 6,239,147 $ 694,457 $ 1,435,968 $ 2,827,380 $ 3,323,729 $ 2,575,487 $ 4,231,203 $ 3,571,304 $ Community Services 3,083,688 3,462,370 4,026,235 5,914,164 6,523,836 6,406,777 6,327,804 7,188,321 7,328,898 7,608,513 Public Works 4,594,582 4,827,239 6,184,741 6,113,896 7,588,622 6,946,020 6,171,521 6,011,976 6,502,500 6,685,834 Public Safety 17,818,926 18,236,348 19,593,426 23,699,722 25,583,592 27,803,253 28,429,019 31,119,615 33,887,766 35,333,948 Interest on long-term debt 3,920,158 2,415,144 2,330,757 2,232,834 2,151,410 2,067,915 2,148,554 1,773,988 1,744,808 1,659,041 Total governmental activities expenses 34,653,740 37,203,187 38,374,306 38,655,073 43,283,428 46,051,345 46,400,627 48,669,387 53,695,175 54,858,640 Business-type activities:

Electric 46,277,804 47,904,907 49,779,468 49,403,697 50,351,428 51,120,030 48,785,845 51,029,071 47,901,891 48,765,106 Water 8,506,714 7,921,708 11,043,511 8,386,330 7,536,133 8,347,920 8,728,560 9,005,710 9,725,277 9,898,697 Wastewater 6,744,619 11,688,507 7,993,337 8,024,680 8,877,863 9,392,971 9,410,998 9,365,512 10,104,456 9,664,981 Total business-type activities expenses 61,529,137 67,515,122 68,816,316 65,814,707 66,765,424 68,860,921 66,925,403 69,400,293 67,731,624 68,328,784 Total primary government expenses 96,182,877 $ 104,718,309 $ 107,190,622 $ 104,469,780 $ 110,048,852 $ 114,912,266 $ 113,326,030 $ 118,069,680 $ 121,426,799 $ 123,187,424 $ Program Revenues Governmental activities:

Charges for services 3,901,311 $ 4,666,390 $ 7,537,312 $ 6,477,891 $ 5,896,532 $ 9,000,436 $ 8,344,863 $ 9,909,845 $ 9,471,119 $ 9,203,272 $ Operating contributions and grants 1,262,475 1,000,957 913,838 1,264,744 1,340,325 2,885,802 3,308,845 3,121,417 2,717,641 5,414,145 Capital contributions and grants 3,549,475 2,931,858 3,654,570 5,222,009 11,366,710 2,860,446 3,974,921 7,642,045 6,028,770 4,609,335 Total governmental activities program revenues 8,713,261 8,599,205 12,105,720 12,964,644 18,603,567 14,746,684 15,628,629 20,673,307 18,217,530 19,226,752 Business-type activities:

Charges for services: Electric 58,718,170 63,162,714 61,405,359 61,977,859 62,806,729 64,768,274 65,166,954 65,238,492 61,775,835 63,818,932 Water 9,798,238 10,235,057 15,331,223 9,849,772 9,236,478 11,370,396 12,722,986 13,273,647 13,022,199 13,560,186 Wastewater 8,615,509 8,232,996 9,176,247 10,124,146 9,395,918 10,183,882 9,944,984 9,833,469 9,898,411 10,696,082 Operating grants and contributions 286,907 121,266 - - - - - - - - Total business-type activities program revenues 77,418,824 81,752,033 85,912,829 81,951,777 81,439,125 86,322,552 87,834,924 88,345,608 84,696,445 88,075,200 Total primary government program revenues 86,132,085 $ 90,351,238 $ 98,018,549 $ 94,916,421 $ 100,042,692 $ 101,069,236 $ 103,463,553 $ 109,018,915 $ 102,913,975 $ 107,301,952 $ Fiscal Year

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(153)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net (Expense)/RevenueGovernmental activities (25,940,479) $ (28,603,982) $ (26,268,586) $ (25,690,429) $ (24,679,861) $ (31,304,661) $ (30,771,998) $ (27,996,080) $ (35,477,645) $ (35,631,888) $ Business-type activities 15,889,687 14,236,911 17,096,513 16,137,070 14,673,701 17,461,631 20,909,521 18,945,315 16,964,821 19,746,416 Total primary government net expense (10,050,792) $ (14,367,071) $ (9,172,073) $ (9,553,359) $ (10,006,160) $ (13,843,030) $ (9,862,477) $ (9,050,765) $ (18,512,824) $ (15,885,472) $ General Revenues and Other Changes in Net PositionGovernmental activities:

Taxes
Property taxes 13,300,697 $ 10,232,378 $ 8,210,221 $ 8,553,676 $ 9,091,011 $ 9,202,416 $ 9,718,702 $ 10,693,887 $ 11,416,280 $ 12,666,201 $ Sales taxes 6,475,409 6,192,845 8,057,783 7,858,489 8,499,869 9,111,126 9,360,121 11,263,771 10,672,833 13,630,270 Other taxes 1,775,612 1,853,413 1,719,666 1,952,231 2,049,089 2,518,622 2,867,325 2,969,762 3,008,167 3,703,290 Motor vehicle in lieu - 49,477 - - - 23,900 28,361 25,788 43,048 39,692 Use of money and property 2,843,573 7,357,507 1,964,313 1,953,756 2,119,057 1,934,110 1,930,035 3,121,914 3,115,824 1,728,740 Other 969,061 3,156,215 227,926 470,125 463,315 643,118 462,857 315,652 513,297 914,307 Transfers 6,259,542 7,710,280 8,321,062 7,888,680 8,072,681 12,910,188 13,252,825 11,561,125 12,841,494 12,207,366 Extraordinary gain (loss) 14,029,804 (3,403,862) - 4,991,938 - 575,630 - - - - Total governmental activities 45,653,698 33,148,253 28,500,971 33,668,895 30,295,022 36,919,110 37,620,226 39,951,899 41,610,943 44,889,866 Business-type activities:

Use of money and property 273,223 162,807 198,891 248,948 335,727 425,594 740,256 2,261,794 2,119,913 104,236 Other 1,544,981 1,977,065 - 4,000 - 123,233 76,418 2,500 2,500 - Transfers (6,259,542) (7,710,280) (8,321,062) (7,888,680) (8,072,681) (12,910,188) (13,252,825) (11,561,125) (12,841,494) (12,207,366) Special Item (4,991,938) - -
Total business-type activities (4,441,338) (5,570,408) (8,122,171) (12,627,670) (7,736,954) (12,361,361) (12,436,151) (9,296,831) (10,719,081) (12,103,130) Total primary government 41,212,360 $ 27,577,845 $ 20,378,800 $ 21,041,225 $ 22,558,068 $ 24,557,749 $ 25,184,075 $ 30,655,068 $ 30,891,862 $ 32,786,736 $ Change in Net PositionGovernmental activities 19,713,219 4,544,271 2,232,385 7,978,466 5,615,161 5,614,449 6,848,228 11,955,819 6,133,298 9,257,978 Business-type activities 11,448,349 8,666,503 8,974,342 3,509,400 6,936,747 5,100,270 8,473,370 9,648,484 6,245,740 7,643,286 Total primary government 31,161,568 $ 13,210,774 $ 11,206,727 $ 11,487,866 $ 12,551,908 $ 10,714,719 $ 15,321,598 $ 21,604,303 $ 12,379,038 $ 16,901,264 $ Notes:Per GASB 63, Net Assets have been replaced with Net Position for fiscal year 2013.

All descriptions have been changed to conform with this requirement.

Fiscal Year

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Packet Pg. 192 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(155)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable 183,119 $ 169,526 $ 180,275 $ 176,275 $ 174,830 $ 188,203 $ 177,457 $ 168,716 $ 272,863 $ 198,001 $ Restricted 197,201 - - - - - - - - -Committed 300,000 300,000 650,000 250,000 10,000 9,626,244 14,708,973 19,454,429 28,913,975Unassigned 2,709,136 4,836,507 1,869,686 6,164,277 4,271,446 9,927,323 5,543,889 6,290,763 6,855,895 8,578,560 Total general fund 3,089,456 $ 5,306,033 $ 2,349,961 $ 6,990,552 $ 4,696,276 $ 10,125,526 $ 15,347,590 $ 21,168,452 $ 26,583,187 $ 37,690,536 $ All Other Governmental Funds
Nonspendable 632,993 $ 630,486 $ 6,060 $ 4,441 $ - $ - $ - $ - $ - $ - $ Restricted:

Reported in:

Special revenue funds 12,238,211 1,180,396 4,005,603 6,753,755 2,543,762 2,158,316 2,111,033 2,128,718 2,352,356 9,842,460 Capital projects funds - 7,952,314 10,108,342 4,838,534 7,182,195 10,698,667 13,036,149 20,110,852 21,899,172 14,132,450 Debt service funds - 3,403,112 5,408,990 4,876,434 4,444,295 4,212,045 3,177,656 2,548,244 2,665,895 2,761,977 Unassigned (4,715,578) (4,056,945) (225,127) (18,741) (887,620) (158,625) (33,768) (680,426) (519,148) (577,288) Total all other governmental funds 8,155,626 $ 9,109,363 $ 19,303,868 $ 16,454,423 $ 13,282,632 $ 16,910,403 $ 18,291,070 $ 24,107,388 $ 26,398,275 $ 26,159,599 $ Fiscal Year

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Packet Pg. 193
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(156)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
RevenuesTaxes (see Schedule 6) 21,568,791 $ 18,281,837 $ 17,508,354 $ 18,644,819 $ 19,992,200 $ 21,374,816 $ 22,920,786 $ 25,534,177 $ 25,705,585 $ 30,621,368 $ Licenses and permits 1,078,828 1,133,102 1,455,343 1,568,458 1,532,839 2,158,020 2,122,915 2,456,053 2,210,285 2,253,754 Intergovernmental 6,213,639 5,251,277 7,109,951 9,027,405 6,695,110 6,750,490 8,130,222 7,826,458 7,293,588 10,845,565 Charges for services 1,334,503 1,927,972 3,586,647 2,286,659 2,863,695 5,338,021 4,415,283 5,284,006 4,942,692 4,222,825 Use of money and property 2,779,873 7,287,736 1,866,625 1,838,400 2,081,510 1,841,970 1,808,418 2,720,043 2,791,998 1,811,762 Fines and fortfeitures 484,634 381,562 327,968 326,266 257,167 324,052 293,338 668,746 528,895 355,974 Contributions 75,000 50,000 - 100,000 50,000 50,000 25,000 75,000 - - Miscellaneous 957,935 3,219,187 736,292 426,201 344,447 1,400,485 584,222 3,587,943 1,189,027 2,264,629 Total revenues 34,493,203 37,532,673 32,591,180 34,218,208 33,816,968 39,237,854 40,300,184 48,152,426 44,662,070 52,375,877 ExpendituresGeneral government 4,486,685 7,430,375 5,341,985 1,657,504 1,620,270 1,734,529 321,900 (217,498) 991,683 1,959,697 Community services 2,929,875 3,284,393 3,718,925 5,758,428 6,423,695 6,242,637 6,392,928 7,065,151 7,145,490 7,479,199 Public works 1,860,691 2,236,747 2,336,376 3,854,359 6,123,692 4,965,789 5,003,419 6,496,037 4,259,048 4,664,991 Public safety 17,305,760 17,601,903 18,741,009 23,994,482 24,812,941 24,887,153 26,903,919 28,053,672 28,420,527 32,002,838 Capital outlay 1,294,587 4,042,835 2,463,088 6,203,435 4,455,227 2,304,395 1,875,917 2,412,236 6,049,130 4,534,453 Debt service
Principal retirement 3,816,197 1,909,153 2,097,196 2,382,575 2,438,015 2,283,384 2,807,618 2,150,825 1,553,312 1,707,772 Interest and fiscal charges 4,458,598 2,214,722 2,109,066 2,014,724 1,919,585 1,815,802 1,979,476 1,495,033 1,433,265 1,425,673 Pass-through agreement payments 193,510 - - - - - - - - - Total expenditures 36,345,903 38,720,128 36,807,645 45,865,507 47,793,425 44,233,689 45,285,177 47,455,456 49,852,455 53,774,623 Excess (Deficiency) of revenues over (under) expenditures (1,852,700) (1,187,455) (4,216,465) (11,647,299) (13,976,457) (4,995,835) (4,984,993) 696,970 (5,190,385) (1,398,746) Other Financing Sources (Uses)Capital Leases - - - - - - - 637,877 - - Transfers in 16,988,859 19,139,851 14,255,862 - 13,354,411 17,356,134 17,061,464 15,155,093 15,519,532 16,155,531 Transfers out (10,684,120) (11,378,220) (5,885,038) - (5,232,594) (4,396,281) (5,473,740) (4,852,760) (2,621,770) (3,888,112) Proceeds from sale of capital assets - - - - 220,043 953,001 - - - - Total other financingsources (uses) 6,304,739 7,761,631 8,370,824 - 8,341,860 13,912,854 11,587,724 10,940,210 12,897,762 12,267,419 Extraordinary loss on dissolution of redevelopment agency (28,776,247) (3,403,862) - - - - - - - - Net change infund balances (24,324,208) $ 3,170,314 $ 4,154,359 $ (11,647,299) $ (5,634,597) $ 8,917,019 $ 6,602,731 $ 11,637,180 $ 7,707,377 $ 10,868,673 $ Debt service as a percentageof noncapital expenditures 24.2% 11.9% 12.2% 11.1% 10.1% 9.8% 11.4% 8.6% 6.8% 6.5% Fiscal Year

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Packet Pg. 194
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
(157)
Estimated
Total Taxable Total Actual
Fiscal Residential Commercial Industrial Other Assessed Tax Taxable Year Property Property Property Property Value Rate Value2012 1,481,699 $ 374,565 $ 306,474 $ 471,431 $ 2,634,169 $ 1.5260 2,556,579 $ 2013 1,500,202 386,794 313,725 481,744 2,682,466 1.5306 2,601,475 2014 1,549,010 378,654 296,797 460,222 2,684,683 1.5285 2,604,773 2015 1,691,422 380,700 299,029 473,308 2,844,459 1.4727 2,793,113 2016 1,808,514 394,965 331,818 470,056 3,005,353 1.5573 2,896,554 2017 1,938,923 414,150 363,719 471,394 3,188,186 1.5216 3,066,251 2018 2,043,492 446,500 421,108 506,210 3,417,311 1.4804 3,289,462 2019 2,155,768 467,165 471,400 577,085 3,671,418 1.4945 3,540,801 2020 2,347,060 492,141 575,382 517,016 3,931,600 1.4820 3,770,650 2021 2,466,823 501,153 676,381 543,226 4,187,582 1.4946 4,019,966 *Source: San Bernardino County Assessor 2020/21 Combined Tax Rolls. HdL, Coren & Cone

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Packet Pg. 195
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

PROPERTY TAX RATES

ALL OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
(RATE PER $1,000 OF ASSESSED VALUE)
(158)
San Bernardino San Bernardino City's Share
Fiscal Basic Colton Unified Rialto Unified Community Unified School San Bernardino Total D&O of 1% Levy per Redevelopment Total Direct Year Levy School District School District College Board Bond Valley Water Tax Rate (2) Prop 13 (3) Rate (4) Rate (5)2012 1.0000 0.1403 0.0856 0.0373 0.0978 0.1650 1.5260 0.16801 1.165 0.506942013 1.0000 0.1488 0.0736 0.0459 0.0998 0.1625 1.5306 0.16801 0.503012014 1.0000 0.1187 0.0704 0.0419 0.1350 0.1625 1.5285 0.16801 0.166472015 1.0000 0.0973 0.0655 0.0393 0.1081 0.1625 1.4727 0.16801 0.166462016 1.0000 0.1169 0.1194 0.0403 0.1182 0.1625 1.5573 0.16801 0.166422017 1.0000 0.1454 0.0992 0.0350 0.0795 0.1625 1.5216 0.16801 0.166442018 1.0000 0.0939 0.0957 0.0376 0.1007 0.1525 1.4804 0.16801 0.166372019 1.0000 0.1116 0.0771 0.0407 0.1126 0.1525 1.4945 0.16801 0.166222020 1.0000 0.1016 0.0848 0.0562 0.0969 0.1425 1.4820 0.16801 0.166272021 1.0000 0.1031 0.0805 0.0651 0.1034 0.1425 1.4946 0.16801 0.16160 Source: San Bernardino County Assessor's Office, Tax Rate Table, HdL, Coren & ConeNotes:
(1)
(2)
(3) (4)
(5)
Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 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 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.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. ERAF general fund tax shifts may not be included in tax ratio figures.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.Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.Redevelopment Rate is based on the largest RDA tax rate area 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.

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Packet Pg. 196
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO
(159)
Percentage
of Total City
Assessed Assessed
Taxpayer Value Rank Value
LBA RV-Company XI LP 74,475,963 $ 1 1.85%Lineage Master RE 3 LLC 72,702,777 2 1.81%Hart Agua Mansa LLC 69,615,308 3 1.73%MG District Appartments WTS LLC 64,311,000 4 1.60%Tides at Grand Terrace Owner LLC 52,768,567 5 1.31%Wanvog Investments LLC 49,735,421 6 1.24% 42,455,392 $ 2 1.66% Ashley Furniture Industries, INC 34,690,626 7 0.86% 56,051,000 1 2.19%Pacific West Management 34,430,418 8 0.86% 28,716,449 4 1.12%My Montecito III 27,042,492 9 0.67% 23,173,832 6 0.91%Falcon Colton LLC 23,670,461 10 0.59%CSM Bakery Products NA Inc 3 1.60% 40,905,593Grand Terrace Apartments California 5 1.11% 28,434,135Headlands Realty Corporation 7 0.84% 21,504,891Meadow Lane Apartments LLC 8 0.83% 21,325,398Bbrands (Multi) QRS 16-137 Inc 9 0.75% 19,067,057Conagra Foods Inc. 10 0.67% 16,963,722Total 503,443,033 $ 12.52% 298,597,469 $ 11.68%City Total 4,019,966,412 $ Source: HdL Coren & Cone (SanBernardino County Assessor 2020/21 Combined Tax Rolls and the SBE Non Unitary Tax Roll 2021 2012
Assessed
Value Rank
Percentage of
Total City Assessed
Value

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Packet Pg. 197
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(160)
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy 2012 2,387,208 $ 2,273,773 $ 95.25% 168,013 $ 2,441,786 $ 102.29% 2013 2,436,976 2,334,108 95.78% 297,583 2,631,691 107.99% 2014 2,478,938 2,409,746 97.21% 237,925 2,647,671 106.81% 2015 2,653,886 2,590,006 97.59% 145,096 2,735,103 103.06% 2016 2,818,148 2,746,894 97.47% 150,086 2,896,980 102.80% 2017 3,007,413 2,948,120 98.03% 97,962 3,046,082 101.29% 2018 3,251,531 3,208,221 98.67% 122,644 3,330,865 102.44% 2019 3,866,230 3,786,646 97.94% 112,567 3,899,213 100.85% 2020 4,199,560 4,110,313 97.87% 50,650 4,160,963 99.08% 2021 4,208,109 4,434,991 105.39% 69,993 4,504,984 107.05% (1) Data provided by the San Bernardino County Assessor's Office for collection of prior year taxes does not segregate the information by fiscal year. Therefore, the City is unable to provide this information in the above schedule. (2) The Percentage of Levy may exceed 100% if the amounts collected for subsequent years exceed the delinquency.(3) Taxes levied for the fiscal year do not include roll corrections.Source: County of San Bernardino Auditor-Controller - Property Tax Division Collected within the
Fiscal Year of the Levy Total Collections

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Packet Pg. 198
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

TAXABLE SALES BY CATEGORY

LAST TEN CALENDAR YEARS
(IN THOUSANDS OF DOLLARS)
(161)
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Food Stores 44,048 $ 48,786 $ 48,418 $ 41,426 $ 42,616 $ 43,994 $ 45,502 $ 37,311 $ 29,754 $ 27,076 $ Eating and Drinking Places 84,283 82,607 77,660 73,616 71,262 65,388 59,601 55,328 51,509 48,532 Building Materials 101,065 109,458 145,448 134,653 108,327 86,755 79,677 63,733 49,120 43,576 Auto Dealers and Supplies 338,009 257,418 231,048 214,338 202,663 193,810 178,534 181,793 131,063 133,185 Service Stations 96,197 119,698 107,207 86,994 73,259 77,420 92,531 89,565 87,741 84,341 Other Retail Stores 152,275 151,721 147,692 141,888 153,444 139,247 124,164 125,724 119,737 114,613 All Other Outlets 341,338 269,314 236,049 216,256 187,028 175,890 158,379 147,798 128,296 121,891 Total 1,157,215 $ 1,039,002 $ 993,522 $ 909,171 $ 838,599 $ 782,504 $ 738,388 $ 701,252 $ 597,220 $ 573,214 $ Source: HdL, Coren & Cone (State of California Board of Equalization)Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

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Packet Pg. 199
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

DIRECT AND OVERLAPPING SALES TAX RATES

LAST TEN FISCAL YEARS
(162)
Fiscal Year City & Local San Bernardino County
2012 1.00% 0.50%
2013 1.00% 0.50%
2014 1.00% 0.50%
2015 1.00% 0.50%
2016 1.00% 0.50%
2017 1.00% 0.50%
2018 1.00% 0.25%
2019 1.00% 0.25%
2020 1.00% 0.25%
2021 1.00% 0.25%
Sources: California department of Tax & Fee Administration website The City of Colton does not have a city sales tax.

Notes: The city sales tax rate may be changed only with the approval of the state legislature.

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Packet Pg. 200 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
PRINCIPAL SALES TAX REMITTERS – IDENTIFIED BY CATEGORY, TOP 25

CURRENT YEAR AND NINE YEARS AGO
(163)
2021 2012
Service Stations Service Stations
Service Stations Service Stations
Home Furnishings Service Stations
Used Automotive Dealers Home Furnishings
New Motor Vehicle Dealers New Motor Vehicle Dealers
Warehse/Farm/Const. Equip. Electrical Equipment
Grocery Stores Used Automotive Dealers
Trailers/RVs Service Stations
Used Automotive Dealers Electrical Equipment
Trailers/Auto Parts Petroleum Prod/Equipment
Used Automotive Dealers Grocery Stores Liquor
Trailers/RVs Trailers/RVs
Service Stations Service Stations
Contractors Trailers/RVs
Food Service Equip./Supplies Trailers/RVs
Trailers/RVs Service Stations
Family Apparel Contractors
Service Stations Family Apparel
Building Materials Service Stations
Grocery Stores Lumber/Building Materials
Repair Shop/Equip. Rentals Grocery Stores Liquor
Repair Shop/Equip. Rentals Service Stations
Service Stations Service Stations
Discount Dept Stores Discount Dept Stores
New Motor Vehicle Dealers New Motor Vehicle Dealers
Sources: State Board of Equalization, California Dept. of Taxes and Fees Admin., State Controller's office, The HdL Companies.

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Packet Pg. 201 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(164)
Business-type Activities
Financing Pension Certificates Certificates Total Percentage Fiscal Notes and Authority Obligation of Capital Revenue Term of Capital Primary of Personal Per Year Agreements Bonds Bond Participation Leases Bonds Loan Participation Leases Government Income Capita 2012 9,327 $ 14,715 $ 29,456 $ - $ 662 $ 63,190 $ 6,468 $ - $ - $ 128,232 $ 14.9% 2,434 2013 5,517 14,000 28,789 - 363 55,120 5,764 - - 112,524 13.1% 2,125 2014 5,362 13,250 28,006 - 175 52,200 5,043 - - 107,790 13.0% 2,032 2015 2,750 12,275 27,100 - 770 47,245 4,596 - - 94,846 11.6% 1,789 2016 2,631 11,405 26,325 - 442 49,020 6,548 - - 88,971 10.5% 1,668 2017 1,829 10,800 25,151 - 218 52,301 5,777 - - 70,925 8.0% 1,316 2018 1,829 9,730 23,819 - 111 57,196 4,986 - - 73,852 7.8% 1,375 2019 1,829 9,255 22,571 - 638 53,432 4,176 - - 69,330 6.7% 1,275 2020 1,829 8,844 21,821 - 520 52,216 3,345 - - 66,754 6.2% 1,233 2021 1,829 8,322 21,117 - 397 47,823 2,494 - - 60,865 5.3% 1,123 Notes: Details regarding the city's outstanding debt can be found in Note 7 of the notes to the financial statements.

See Schedule 18 for personal income and population data. These ratios are calculated using personal Governmental Activities
income and population for the prior calendar year.

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Packet Pg. 202
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2021
(165)
Total Debt Percent City's Share of Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: June 30, 2021 Applicable (1) June 30, 2021 San Bernardino Valley Joint Community College District 727,578,368 $ 5.040 % 36,669,950 $ Colton Joint Unified School District 203,682,661 30.107 61,322,739 Rialto Unified School District 100,756,111 5.139 5,177,857 San Bernardino Unified School District 289,886,327 0.008 23,191 TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT 1,321,903,467 $ 103,193,737 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations 214,095,000 $ 1.606 % 3,438,366 $ San Bernardino County Pension Obligation Bonds 180,825,585 1.606 2,904,059 Rialto Unified School District General Fund Obligations 10,868,570 5.139 558,536 San Bernardino City Unified School District Certificates of Participation 90,000,000 0.008 7,200 City of Colton General Fund Obligations 8,250,000 100.000 8,250,000 City of Colton Pension Obligation Bonds 17,764,400 100.000 17,764,400 (2) San Bernardino County Flood Control District Certificates of Participation 51,360,000 1.606 824,842 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 573,163,555 $ 33,747,403 $ OVERLAPPING TAX INCREMENT DEBT (Successor Agencies):

City of Colton Tax Allocation Bonds 10,370,000 $ 100.000 % 10,370,000 $ San Bernardino County Inland Valley Tax Allocation Bonds 225,585,000 2.055 4,635,772 TOTAL OVERLAPPING TAX INCREMENT DEBT $ 15,005,772
Total Direct Debt $ 26,014,400
Total Overlapping Debt $ 125,932,512
Combined Total Debt (2) $ 151,946,912 (3)
Note:
(1) 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) Excludes accreted interest.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2020-21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.57%
Total Direct Debt ($26,014,400) 0.65%
Combined Total Debt 3.78%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($1,417,094,761):

Total Overlapping Tax Increment Debt 1.06%
Source: Avenu Insights & Analytics
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Colton. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident—and therefore responsible for repaying the debt—of each overlapping government.

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Packet Pg. 203 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(166)
Legal Debt Margin Calculation for Fiscal Year 2021Assessed value $ 4,187,582Debt limit (15% of assessed value) 628,137Debt applicable to limit: General obligation bonds - Less: Amount set aside for repayment of general obligation debt - Total net debt applicable to limit -Legal debt margin $ 628,137 Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Debt limit 628,137 $ 589,740 $ 550,713 $ 512,597 $ 478,228 $ 450,803 $ 426,669 $ 402,703 $ 402,370 $ 395,125 $ Total net debt applicable to limit - - - - - - - - - -
Legal debt margin 628,137 $ 589,740 $ 550,713 $ 512,597 $ 478,228 $ 450,803 $ 426,669 $ 402,703 $ 402,370 $ 395,125 $ Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Notes: Under state finance law, the city's outstanding general obligation debt should not exceed 15 percent of total assessed property value.

However, the city has established a more conservative internal limit of no more than 5 percent. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

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Packet Pg. 204
Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(167)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Business Type Activity
Revenue Bonds
Operating Net Income (1) 26,400 27,395 29,232 29,063 23,764 21,765 23,500 25,978 24,661 27,691 Debt Service - Principal 4,095 3,915 3,764 10,386 3,295 3,155 3,030 2,920 38,835 2,880 Debt Service - Interest 2,083 2,264 2,418 2,136 2,218 2,356 2,481 2,588 2,621 3,060 Coverage (2) 4.27 4.43 4.73 2.32 4.31 3.95 4.26 4.72 0.59 4.66 Notes: (1) Net operating income (loss) exclusive of depreciation and connection fees, inclusive of investment revenue. (2) Ratio of revenue to payments against bonds.

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
(168)
Personal Per
Income Capita
Calendar (thousands Personal Unemployment Median
Year Population of dollars) Income Rate Age
2011 52,690 860,849 $ 16,338 $ 14.2% 28.5
2012 52,956 856,616 16,176 10.4% 28.6
2013 53,057 830,342 15,650 9.0% 28.1
2014 53,002 818,139 15,436 8.0% 27.9
2015 53,351 850,300 15,937 6.5% 27.7
2016 53,879 883,059 16,389 5.7% 28.6
2017 53,724 948,500 17,655 4.3% 29.6
2018 54,391 1,032,154 18,976 4.2% 30.4
2019 54,118 1,073,709 19,840 4.0% 30.7
2020 54,198 1,143,578 21,100 9.9% 31.4
Source: Population: California State Department of Finance. HdL, Coren & Cone Unemployment Data: California Employment Development Department. HdL, Coren & Cone

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Packet Pg. 206 Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA
PRINCIPAL EMPLOYERS – TOP 20

CURRENT YEAR AND NINE YEARS AGO
(169)
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Arrowhead Regional Medical Center 3,510 1 14.21% 2,764 1 12.86%Colton Joint Unified School District 2,320 2 9.39% 830 3 3.86%Wal-Mart Distribution Center 800 3 3.24%Lineage Logistics 550 4 2.23%County of San Bernardino 427 5 1.73%Wal-Mart Supercenter 348 6 1.41% 314 4 1.46%Ashley Homestore Outlet 330 7 1.34% 996 2 4.63%City of Colton 286 8 1.16%Brill, Inc. 250 9 1.01%Reche Canyon Rehabilitation & Health Care Center 245 10 0.99%Stater Bros Market (3 Locations) 248 6 1.15%Williams Furnace Company 234 7 1.09%Western Healthcare Management / Meadows Ridge Care Center 187 8 0.87%Summit Career College, Inc. 183 9 0.85%Angelica Corporation 305 5 1.42%Castle and Cooke Cold Storage 177 10 0.82%Total 9,066 36.70% 6,238 29.01%Source: MuniServices, LLC / Avenu Insights & Analytics 2021 2012

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CITY OF COLTON, CALIFORNIA

FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(170)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program
General government
Management services 16 15 15 16 17 17 16 16 16 16
Finance 6 6 5 7 6 7 7 5 7 8
Information systems 1 2 2 3 3 3 3 3 3 3
Planning 3 1 7 6 8 7 6 6 6 7
Building 2 1 1 2 2 2 2 4 3 3
Other 7 6 6 8 10 12 20 23 24 23
Police
Field Officers 46 41 52 47 43 48 49 53 52 52
Support staff 20 26 17 28 25 27 27 29 29 29
Fire
Firefighters and supervisors 30 38 41 41 33 38 38 36 37 37 Support staff 1 1 1 1 1 1 1 - 1 1
Other public works
Engineering and administrative 5 5 5 5 4 4 5 6 4 6
Maintenance 17 15 11 23 24 18 19 22 22 21
Redevelopment 1 1 1 2 1 - - - -
Community Services 10 10 12 12 12 12 11 9 8 8
Library 1 1 1 1 1 1 1 1 1 1
Water 11 14 13 19 15 15 14 12 13 14
Wastewater 10 8 21 16 23 22 22 20 22 22
Electric 36 37 36 40 39 41 41 37 36 35
Total 223 228 247 277 267 275 282 282 284 286
Source: Finance DepartmentNotes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave).

Actual Full-time Employees
as of June 30

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CITY OF COLTON, CALIFORNIA

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(171)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program
General government
Building permits issued 562 454 707 774 1,170 918 1,072 1,164 856 1,069 Building inspections conducted 1,694 2,560 2,369 5,137 4,677 3,824 3,861 4,812 3,554 4,486 Police
Physical arrests 1,640 1,717 1,722 2,094 2,801 2,404 2,597 2,116 1,541 1,547 Parking violations 785 1,759 1,284 1,882 3,031 2,219 2,760 4,372 3,304 3,499 Traffic violations 2,300 2,670 1,582 2,875 3,379 1,786 2,576 3,564 1,486 1,206 Fire
Emergency responses 5,400 5,480 6,092 6,817 7,048 7,692 7,281 8,035 8,040 8,181 Fires extinguished 265 279 270 262 327 361 476 492 358 570 Inspections 754 832 534 623 743 757 784 798 742
Other public works
Street resurfacing (lane miles) 0.40 1.00 1.00 1.00 1.00 18.00 7.00 12.00 9.00 21.00Potholes repaired 1,400 1,500 1,800 1,700 1,600 1,500 1,600 1,400 1,500 1,664 Parks and recreation
Facility usage permits issued 415 420 524 580 503 387 275 243 236 37 Individual Facility Reservations 3,582 780 3,159 2,068 322 Community center attendance 215,400 219,432 245,315 230,486 220,136 228,493 225,465 230,540 89,454 18,797 Library
Volumes in collection 79,825 82,155 84,965 84,845 84,949 85,725 86,321 84,246 84,319 83,725 Total volumes borrowed 180,134 52,631 53,363 42,176 36,523 59,087 52,156 53,443 42,754 1,870 Water
New connections 6
Water main breaks -
New Connections 3 6 3 6 5 24Water Main Breaks 2 - - 1 1 -Average daily consumption (thousands of gallons) 9,500 9,600 9,400 8,600 7,842 8,300 8,700 8,500 9,416 9,800 Peak daily consumption (thousands of gallons) 13,100 14,365 14,300 11,600 15,302 13,300 11,800 13,100 13,300 16,680 Wastewater
Average daily sewage treatment (thousands of gallons) 5,800 5,800 5,800 5,055 5,155 4,810 5,022 5,100 5,045 4,988 Electric
New connectionsAverage daily consumption (kw) 945,436 951,170 952,901 901,179 1,029,500 1,002,597 1,016,732 977,479 883,282 963,125 Annual peak demand (kw) 83 85 83 84 81 81 87 86 83 88
Sources: Various city departments.

Fiscal Years

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

CITY OF COLTON, CALIFORNIA

CAPITAL ASSETS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(172)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program
Police Protection
Stations 1 1 1 1 1 1 1 1 1 1
Substations 1 1 1 1 1 1 1 1 1 1
Patrol units 23 21 28 19 15 21 21 22 24 25
Specialized purpose units 49 41 43 44 42 42 42 44 47 41 Fire Protection
Stations 4 4 4 4 4 4 4 4 4 4
Squad units 1 2 2 2 2 2 2 1 1 1
Engine units 6 7 8 7 7 7 7 8 8 7
Other public works
Streets and alleys - paved (lane miles) 305 305 306 307 307 308 308 308 308 308 Traffic signals 54 56 56 56 56 60 63 63 65 65
Parks and recreation
Acreage 50 50 50 50 50 50 50 50 50 50
Playgrounds 5 5 5 5 5 5 5 5 5 5
Baseball/softball diamonds 11 11 11 11 11 11 11 11 11 11 Soccer/football fields 1 1 1 1 1 1 1 1 1 1
Community centers 4 4 4 4 4 4 4 4 4 4
Swimming pool 1 1 1 1 1 1 1 1 1 1
Tennis courts 2 2 2 2 2 2 2 2 2 2
Libraries
Central Building 1 1 1 1 1 1 1 1 1 1
Satelite locations 2 1 2 2 2 2 2 1 1 1
Books 70,755 72,944 84,965 84,845 84,949 85,725 86,321 73,827 73,926 73,287 Audiovisual recordings 9,070 9,211 9,418 9,523 9,607 9,727 9,768 10,313 10,393 10,438 Municipal Water Department
Residential meters 8,905 8,873 8,868 9,286 9,485 8,932 9,042 8,945 8,954 9,020 Commercial/industrial meters 1,150 1,133 1,184 1,176 1,196 1,161 1,214 1,164 1,174 1,192 Fire protection meters 177 180 181 179 181 193 206 182 189 186 Water mains (miles) 130 130 130 130 130 130 130 130 130 130 Fire hydrants 1,516 1,516 1,517 1,518 1,518 1,518 1,518 1,525 1,525 1,534 Storage capacity (thousands of gallons) 19,300 19,300 19,300 19,300 19,300 17,300 17,300 17,300 17,300 17,300 Wastewater
Sanitary sewers (miles) 178 178 178 178 178 178 178 178 178 178 Storm sewers (miles)Treatment capacity (thousands of gallons) 10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,400 Municipal Electric Department
Residential meters 16,055 16,085 16,190 16,262 16,533 16,599 16,784 15,795 16,956 17,208 Commercial 2,464 2,474 2,491 2,498 2,517 2,528 2,547 2,569 2,580 2,626 Industrial 73 75 77 80 85 86 85 87 96 102
Municipal 242 245 246 247 257 261 267 268 268 272
Distribution lines (miles) 166 166 169 169 170 170 172 175 175 175 Streetlights 5,271 5,284 5,265 5,302 5,320 5,307 5,307 5,323 5,320 5,320 Sources: Various city departments.

Fiscal Years

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Attachment: CityofColton_AnnualComprehensiveFinancialReportFY2020-21 (3466 : FY2020-21 ACFR)

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Packet Pg. 211 Attachment: CityofColton_AuditCommunicationLetter (3466 : FY2020-21 ACFR)

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Packet Pg. 212 Attachment: CityofColton_AuditCommunicationLetter (3466 : FY2020-21 ACFR)

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Packet Pg. 213 Attachment: CityofColton_AuditCommunicationLetter (3466 : FY2020-21 ACFR)

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Packet Pg. 214 Attachment: CityofColton_AuditCommunicationLetter (3466 : FY2020-21 ACFR)

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Packet Pg. 215 Attachment: CityofColton_AuditCommunicationLetter (3466 : FY2020-21 ACFR)

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Packet Pg. 216 Attachment: CityofColton_GAS Letter (3466 : FY2020-21 ACFR)

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Packet Pg. 217 Attachment: CityofColton_GAS Letter (3466 : FY2020-21 ACFR)

2.c
Packet Pg. 218 Attachment: CityofColton_GAS Letter (3466 : FY2020-21 ACFR)

2.d
Packet Pg. 219 Attachment: CityofColtonGANNRpt21 (3466 : FY2020-21 ACFR)

2.d
Packet Pg. 220 Attachment: CityofColtonGANNRpt21 (3466 : FY2020-21 ACFR)

2.d
Packet Pg. 221 Attachment: CityofColtonGANNRpt21 (3466 : FY2020-21 ACFR)

2.d
Packet Pg. 222 Attachment: CityofColtonGANNRpt21 (3466 : FY2020-21 ACFR)

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Packet Pg. 223 Attachment: CityofColtonGANNRpt21 (3466 : FY2020-21 ACFR) WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor ©
2021 Clifto
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Communication with Those Charged
with Governance
2021 Audit Results
City of Colton

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Packet Pg. 224 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ©
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Outline P
• Scope of Services
• Auditors’ Opinion and Reports
• Communication with Those
Charged with Governance

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Packet Pg. 225 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ©
2021 Clifto
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Scope of Services P
• Audit of the annual financial statements for
the year ended June 30, 2021 in accordance
with Generally Accepted (US) and
Governmental Auditing Standards
• Audit of federal grant expenditures under
Uniform Guidance (in process)
• Financial and Compliance Audit – Child Care
• Agreed-Upon-Procedures related to the City’s
calculation of the GANN limit

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Packet Pg. 226 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ©
2021 Clifto
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Auditors’
Opinion
• Audit of financial statements for the year ended
June 30, 2021
• Management is responsible for preparation and
fair presentation of the financial statements
• Auditor’s responsibility is to express opinions on
the financial statements
• Standards require that audit is planned and
performed to obtain reasonable assurance that
financial statements are free from material
misstatement
• Audit evidence is sufficient and appropriate to
provide a basis of our audit opinions
• Unmodified opinions for June 30, 2021

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Packet Pg. 227 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ©
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General Fund Highlights P
• Fund balance at June 30, 2021 was
$37,690,536
o $198,001 - nonspendable
o $28,913,975 - committed
§ Pension obligation- $19,820,872
§ OPEB obligation - $7,793,103
§ Settlement agreement - $1,300,000
o $8,578,560 - unassigned
• Revenues and transfers in - $55,616,546
• Expenditures and transfers out - $44,509,197
• Net change in fund balance – $11,107,349

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Packet Pg. 228 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ©
2021 Clifto
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Management Letter
• Material Weakness
o None
• Significant Deficiencies
o Custody of investments (prior year)
• Other Matters
o None

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Packet Pg. 229 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ©
2021 Clifto
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Communication with Those Charged with
Governance
• The planned scope and timing of the June 30,
2021 audit was communicated through the
engagement letter and during planning
meeting
• Management is responsible for the selection
and use of appropriate accounting policies,
which are described in note 1 to the financial
statements.

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Packet Pg. 230 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ©
2021 Clifto
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Communication with Those Charged with
Governance
• Significant estimates reported in the financial
statements include the following:
o Required contributions, pension expense, net pension
liability and deferred outflows/inflows of resources of CalPERS defined benefit pension plan
o OPEB expense, net OPEB liability and deferred
outflows/inflows of resources of CalPERS defined benefit pension plan

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Packet Pg. 231 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ©
2021 Clifto
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Communication with Those Charged with
Governance
• The most sensitive disclosures affecting the
financial statements include the following:
o Note 8 regarding defined benefit plan
o Note 9 regarding City’s OPEB plan
• Difficulties during audit – none.
• Corrected and Uncorrected Misstatements

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Packet Pg. 232 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ©
2021 Clifto
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Communication with Those Charged with
Governance
• No disagreements arose during the course of
our audit.
• Representations related to audit obtained
from management in a letter dated
December 22, 2021.
• To our knowledge, the City did not consult
with other accountants regarding auditing or
accounting matters.

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Packet Pg. 233 Attachment: 2021 Colton Presentation (3466 : FY2020-21 ACFR) ITEM NO. 3

STAFF REPORT
DATE: FEBRUARY 1, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STACEY DABBS, FINANCE DIRECTOR
SUBJECT: APPROVE AND ADOPT RESOLUTIONS FOR FY2021-22 MID-YEAR BUDGET REVIEW, RESOLUTION NO. R-10-22, CUA-01-22, AND
CHA-01-22.

RECOMMENDED ACTION
Staff recommends that the City Council take the following action:

1. Adopt Resolution No. R-10-22 authorizing the amendment of the Fiscal Year 2021-22 Budget to include certain necessary adjustments as detailed in this report.

2. It is recommended that the Colton Utility Authority Board adopt Resolution No. CUA01-22 authorizing the amendment of the Fiscal Year 2021-22 Budget to include certain necessary adjustments as detailed in this report.

3. It is recommended that the Housing Authority Board adopt Resolution No. CHA-01-22 authorizing the amendment of the Fiscal Year 2021-22 Budget to include certain necessary adjustments as detailed in this report.

BACKGROUND
The City Council adopted the City of Colton Fiscal Year 2021-22 Budget at its May 18, 2021 City Council meeting. The originally adopted General Fund budget included estimated revenues in the amount of $44,217,674 and proposed expenditures totaling $45,608,309. Factoring in prior year Purchase Order rolls and authorized prior year budget carryovers, as well as any additional revenue projections and appropriations authorized by the City Council during the course of the current fiscal year, the current General Fund revenue budget is $45,014,153 while the expenditure budget totals $50,624,716.
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Staff Report to the Mayor and City Council
FY2021-22 Mid-Year Budget Review
February 1, 2022

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Colton City CouncilFebruary 1, 2022

Colton City Council
February 1, 2022