Colton City Council
February 21, 2023

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
Kelly J. Chastain - District 2
Dr. Luis S. Gonzalez - District 3
John R. Echevarria - District 4

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 21, 2023 – 5:00 P.M.

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

CLOSED SESSION CALLED TO ORDER

ROLL CALL
PUBLIC COMMENT - Closed Session
This is the portion of the meeting specifically set aside to invite your comments regarding Closed Session items and other general comments about matters not on the agenda; 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 –WORKERS’ COMPENSATION CLAIM Pursuant to California Government Code, Section 54956.95.

Case Name(s): Gary Gruenzner v. City of Colton

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 h as 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 Johnny De La Rosa - Echoes of Love Ministry

FLAG SALUTE

ROLL CALL

CEREMONIAL MATTERS
Presentations, Awards, Proclamations
 Business Recognition - A-1 Barbers
 Recognition - Fire Department Medical Director
 Recognition - Volunteers from California University of Science and Medicine

MAYOR AND COUNCIL ITEMS

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 dis closure 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)

3 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
There are no Public Hearings scheduled for this meeting.

BUSINESS ITEMS
(1) FY2021-22 ACFR and Related Reports - Receive and File the FY2021-22 Annual Comprehensive Annual Financial Report (ACFR) and Related Reports.
[Staff Person: Stacey Dabbs]
(2) Ordinance - City Manager Settlement Authority - Waive Full Reading, Read By Title Only and Pass First Reading of an Ordinance Authorizing the City Manager to Settle Claims and Lawsuits for Amounts up to and Including $50,000, ORDINANCE NO. O-11-22.
[Staff Person: Bill Smith]
PUBLIC COMMENT Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding Consent Calendar items and other general comments about matters not on the agenda; however, any matter that requires action will be referred to staff for investigation and report at a subsequent Council meeting. The Co uncil 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 (3) Warrants - Approve voucher numbers 203489 to 203580 dated 01/12/2023 and totaling $2,540,966.58; voucher numbers 203581 to 203624 dated 01/19/2023 and totaling $474,525.57; voucher numbers 203626 to 203705 dated 01/30/2023 and totaling $73,076.28; voucher numbers 203625, 203706 to 203847 and totaling $909,389.87; voucher number 203848 for $4,256.03; a payroll disbursement listing dated 11/26/2022 to 12/09/2022 and totaling $928,482.61 and a payroll disbursement listing dated 12/10/2022 to 12/23/2022 and totaling $857,223.64.
[Staff Person: Stacey Dabbs]
(4) City Treasurer's Report - Receive and File City Treasurer's Report for November 2022. [Staff Person: Aurelio De La Torre]
(5) Agreement - Urban and Multi-benefit Drought Relief Program Grant - Approve Agreement with California Rural Water Association for the Well 32 Project and Resolution Amending the Fiscal Year 2022 -23 Budget to Account for Grant Acceptance, RESOLUTION NO. R-15-23. [Staff Person: Brian Dickinson]
(6) Contract Award - Minagar and Associates, Inc. - Award of Engineering Design Contract to Minagar and Associates, Inc. for the 7th Street/Valley Blvd. and the La Cadena Dr./Bordwell Ave./Laurel Av e. Traffic Signal Project.
[Staff Person: Brian Dickinson]
(7) Contract Award - Ninyo & Moore - Approve Contract Award to Ninyo & Moore for Phase II Environmental Work on the City Maintenance Yard Project.
[Staff Person: Brian Dickinson]
(8) Contract Award & Reimbursement Agreement - Rincon Environmental Services - Approve Contract for Environmental Services with Rincon Consultants and Reimbursement Agreement with Applicant for Calwest Yards, LLC Zoning Text Amendment, Conditional Use Permit and Architectural and Site Plan Review Application.
[Staff Person: Mark Tomich]
(9) Grant - CalRecycle - Accept Grant from CalRecycle SB1383 Local Assistance Grant Program and Amend FY2023 Budget Accordingly, RESOLUTION NO. R-14-23.
[Staff Person: Brian Dickinson]
(10) Second Reading of Ordinance No.O-01-23 - Waive Full Reading, Read By Title Only, and Approve Second Reading of an Ordinance of the City Council of the City of Colton, California, to Amend, Certain Sections in Chapters 18.04; 18.06; 18.24, 18.26, 18.28, and 18.48 of Title 18 (Zoning) of the Colton Municipal Code Related to Definitions, Permitted Uses, Development Standards in the I-P (Industrial Park), M-1 (Light Industrial) and M-2 (Heavy Industrial) Zones, and Special Provisions (File Index No. Dap -001-697), ORDINANCE NO. O-01-23.
[Staff Person: Stephanie M. Vargas]
(11) Second Reading of Ordinance No. O-02-23 - Waive Full Reading, Read By Title Only, and Approve Second Reading of an Ordinance of the City Council of the City of Colton, California, to Ap prove 2022 Citywide Engineering and Traffic (Speed) Survey, ORDINANCE NO. O-2-23. [Staff Person: Stephanie M. Vargas]

MAYOR AND COUNCIL ORAL REPORTS AND COMMENTS
Comments from Mayor and Council on various issues and activities throughout the community. Comments shall be limited to 5 Minutes per speaker.

CITY MANAGER'S REPORTS

ADJOURNMENT

5 I, Stephanie Vargas, the Deputy City Clerk, 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 C ouncil 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 prov ided for in the City Council Manual of Procedure.

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.

NOTICE TO PUBLIC

Staff reports or other written documentation relating to each item referred to, on the Agenda, are available for publi c inspection at the following locations: Office of the City Clerk, 650 N. La Cadena Drive, Colton, CA; City of Colton Public Library, 656 9 th 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 lis ted 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.

6 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 21, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STACEY DABBS, FINANCE DIRECTOR
SUBJECT: RECEIVE AND FILE THE FY2021-22 ANNUAL COMPREHENSIVE ANNUAL FINANCIAL REPORT (ACFR) AND RELATED REPORTS.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Receive and file the FY2021-22 Annual Comprehensive Financial Report (ACFR), the GAS Letter, Management Letter, GANN Limit Report, and the Communication with those in charge of governance (exit letter).

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 G enerally 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 recei ved an unmodified, or “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.

ISSUES/ANALYSIS

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 1 Packet Pg. 7
Staff Report to the Mayor and City Council
FY2021-22 ACFR
February 21, 2023

findings, as well as recommended and proposed corrective actions are discussed i n detail in the attached Report on Internal Controls and in the Report on Scope of Audit and Other Matters.

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, 2022.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. Final ACFR

2. Final Internal Control Communication

3. Colton GANN AUP

4. Final Governance Communication

5. Power Point- 2022 Audit Results
1 Packet Pg. 8

CITY OF COLTON

ANNUAL COMPREHENSIVE

YEAR ENDING
June 30, 2022

FINANCIAL REPORT

1.a
Packet Pg. 9
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 10
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
MUNICIPAL OFFICIALS v
ORGANIZATION CHART vi
GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE vii

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS – Required Supplementary Information 6

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 22
STATEMENT OF ACTIVITIES 23

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 25

RECONCILIATION TO THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION 26

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 27

RECONCILIATION TO THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES 28
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT –
GENERAL FUND 30
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT – ARPA
SPECIAL REVENUE FUND 31

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 32

1.a
Packet Pg. 11
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSIT
ION 34
STATEMENT OF CASH FLOWS 35

FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 37
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 38
NOTES TO FINANCIAL STATEMENTS 40

REQUIRED SUPPLEMENTARY INFORMATION

CALPERS PENSION PLANS

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS– SAFETY PLANS 92
SCHEDULE OF CONTRIBUTIONS – SAFETY PLANS 94

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – MISCELLANEOUS PLAN 96
SCHEDULE OF CONTRIBUTIONS – MISCELLANEOUS PLAN 98

OTHER POSTEMPLOYMENT BENEFITS PLAN

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

SUPPLEMENTARY INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
OTHER NONMAJOR GOVERNMENTAL FUNDS 104
COMBINING BALANCE SHEET 107

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 111

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND 115
COMMUNITY CHILD CARE SPECIAL REVENUE FUND 116
LIBRARY GRANT SPECIAL REVENUE FUND 117

1.a
Packet Pg. 12
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE
FUND 118
ST
ATE TRAFFIC RELIEF SPECIAL REVENUE FUND 119
ASSET SEIZURE SPECIAL REVENUE FUND 120
AIR QUALITY SPECIAL REVENUE FUND 121
DRUG/GANG INTERVENTION SPECIAL REVENUE FUND 122
HOST CITY FEES SPECIAL REVENUE FUND 123
STORM WATER SPECIAL REVENUE FUND 124
LOCAL TRANSPORTATION SPECIAL REVENUE FUND 125
NEW FACILITIES SPECIAL REVENUE FUND 126
CIVIC CENTER DEVELOPMENT FEE SPECIAL REVENUE FUND 127
FIRE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND 128
POLICE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND 129 ViTEP SPECIAL REVENUE FUND 130
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 131
HOUSING AUTHORITY SPECIAL REVENUE FUND 132
PUBLIC FINANCING AUTHORITY DEBT SERVICE FUND 133
TAXABLE PENSION FUNDING BONDS DEBT SERVICE FUND 134
CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND 135
DEVELOPMENT FEES CAPITAL PROJECTS FUND 136
COLTON CROSSING CAPITAL PROJECTS FUND 137
INTERNAL SERVICE FUNDS 138
COMBINING STATEMENT OF NET POSITION 139

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION 140
COMBINING STATEMENT OF CASH FLOWS 141
CUSTODIAL FUNDS 142

1.a
Packet Pg. 13
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
COMBINING STATEMENT OF FIDUCIARY NET POSITION 143

COMBINI
NG STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 144
PRIVATE-PURPOSE TRUST FUNDS 145
COMBINING STATEMENT OF FIDUCIARY NET POSITION 146
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 147

STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION CONTENTS 150

FINANCIAL TRENDS
NET POSITION BY COMPONENT 152
CHANGES IN NET POSITION 153
FUND BALANCES OF GOVERNMENTAL FUNDS 156
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 157

REVENUE CAPACITY

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 158
PROPERTY TAX RATES – ALL OVERLAPPING GOVERNMENTS 159
PRINCIPAL PROPERTY TAX PAYERS 160
PROPERTY TAX LEVIES AND COLLECTIONS 161
TAXABLE SALES BY CATEGORY 162
DIRECT AND OVERLAPPING SALES TAX RATES 163
PRINCIPAL SALES TAX REMITTERS – IDENTIFIED BY CATEGORY, TOP 25 164

DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE 165
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 166 LEGAL DEBT MARGIN INFORMATION 167
PLEDGED-REVENUE COVERAGE 168

1.a
Packet Pg. 14
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

DEMOGRAPHIC AND ECONOMIC INFORMATION

DEMOGRA
PHIC AND ECONOMIC STATISTICS 169
PRINCIPAL EMPLOYERS – TOP 20 170

OPERATING INFORMATION
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM 171 OPERATING INDICATORS BY FUNCTION/PROGRAM 172
CAPITAL ASSETS BY FUNCTION/PROGRAM 173

1.a
Packet Pg. 15
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 16
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

INTRODUCTORY SECTION

1.a
Packet Pg. 17
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
This page is intentionally left blank.

1.a
Packet Pg. 18
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
650 North La Cadena Drive, Colton California 92324
February 6, 2023
H
onorable 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, 2022. 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 nece ssary 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 e stablished 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 G AAP. 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, 2022, 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, 2022, 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” design ed to meet the particular
needs of federal grantor agencies. The standards governing Single Audit engagements require the in
dependent 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 ACFR. i

1.a
Packet Pg. 19
Attachment: Final ACFR (3971 : FY2021-22 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. E arp, 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 electe d 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
Although the focus of this Annual Financial Report is the economic condition of the City for the fiscal year ending June 30, 2022, management continued to consider the ongoing local and national economic effects of the COVI D-19 pandemic and the civil unrest in Russia and Ukraine when adopting the Fiscal Year 2022-23 budget. Although the U.S. economy’s performance in the past fiscal year has surpassed expectations, significantly increased inflation, continued supply chain sho rtages and delays, increases in natural gas prices, and other related issues continue to challenge business leaders and legislators.

The U.S. economy ended 2021 with GDP growing 6.9% in the fourth quarter. With that growth, inflation grew by a startlin g 7%, smashing through the Federal Reserve’s 2% target. At the end of 2021, the unemployment rate was just 3.9%, down from

6.4% at the beginning of the year. At its March 16, 2022 meeting, the Federal Reserve projected economic growth would slow to 2.8% in 2022.

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 -at-home orders and the switch to remote education a nd 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 continues to remain robust as we emerge from the pandemic. By the close of Q2 2022, the City of Colton’s average and median single -family residential prices surpassed pre-Great Recession values and continued to push to record-breaking highs.

The City’s elected and appointed officials consider many econom ic 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 has significantly improved its financial position through pruden t, long -range policy decisions and sound fiscal management. 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 t he fiscal health and sustainability of our beloved City. 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 balanci ng the emerging needs of the community. ii

1.a
Packet Pg. 20
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
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 Co lton 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.

The most significant risks to the City’s economic outlook are generally outside of our control as the country struggles to de al with the public health crisis effectively. Internal factors, such as increasing costs from pension contracts, and external fa ctors, 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 post-employment benefit costs to ascend as well.

Although the City of Colton’s financial foundation ha s improved, the City’s future economic health and sustainability will be dependent upon maintinaing healthy r eserves 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 decision s 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.

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 semi- annual 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.

In November 2022 , voters in the City of Colton p assed a local tranactions and use tax , Measure S, to address long-term sustainability, inflation, and pension and OPEB liabilities . 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 good s 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 fu nds.

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. iii

1.a
Packet Pg. 21
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
vi

1.a
Packet Pg. 22
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
Colton
City Council
City of
Frank J. Navarro
Mayor
David J. Toro
Mayor Pro Tem
District 1
Kelly J. Chastain
Council Member
District 2
Dr. Luis S. Gonzalez
Council Member
District 3
John R. Echevarria
Council Member
District 4
v

1.a
Packet Pg. 23
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
Citywide Organizational Chart
Colton Citizens
City Council City ClerkCity Treasurer
City Attorney City Manager
Commissions /
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
Asst. City Manager
vi

1.a
Packet Pg. 24
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Colton
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
vii

1.a
Packet Pg. 25
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 26
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

FINANCIAL SECTION

1.a
Packet Pg. 27
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 28
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(1)
INDEP
ENDENT AUDITORS’ REPORT
Honorable Mayor and
Members of the City Council
of the City of Colton
Colton, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business type activities, each major fund and the aggregate remaining fund information of the City of Colton, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business type activities, each major fund and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison information for the General Fund and ARPA Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
Change in Accounting Principle
As described in Note 1D to the financial statements, effective July 1, 2021, the City adopted new accounting guidance, Statement of Governmental Accounting Standards Board (GASB Statement) No. 87, Leases. Our opinions are not modified with respect to this matter.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

1.a
Packet Pg. 29
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
Honorable Mayor and
Members of the City Council
of the City of Colton
(2)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Colton’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial stat ements, whether due
to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosure s in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going co ncern for a reasonable period of time.

1.a
Packet Pg. 30
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
Honorable Mayor and
Members of the City Council
of the City of Colton
(3)
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

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 postemployment benefit plan – schedule of changes in the total OPEB liability and related ratios, identified as Required Supplementary Informat ion (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, is the responsibility of management and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate oper ational, 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 informat ion 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.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

1.a
Packet Pg. 31
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
Honorable Mayor and
Members of the City Council
of the City of Colton
(4)
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated February 6, 2023, 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
February 6, 2023

1.a
Packet Pg. 32
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
5 Management’s Discussion and Analysis
As management of the City of Colton, California (“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, 2022. 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 2020-21. 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 $159,125,942 (net position). The two components of this total are: $15,692,461 in governmental activities and $143,433,481 in business-type activities.  Overall, the City’s total net position increased by $8,967,154, or 6.0%.  As of the close of the current fiscal year, general fund unassigned fund balance was $12,162,544, and balances committed for the City’s pension and OPEB liabilities total $20,960,724 and $8,941,514 respectively.  Long-term liabilities related to Governmental Activities decreased by $1,994,025 or 4.7%, and long-term liabilities related to Business-type activities decreased $4,309,869, or 8.5%, over the prior year.  As of the close of the fiscal year, the City’s governmental activities reported combined ending net position of $15,692,461, an increase of $7,170,429 over the prior year.  As of June 30, 2022, total long-term liabilities of the governmental activities and business-type activities include net pension liabilities of $60,777,941 and $13,245,441 respectiv ely, which represents decr eases of $29,853,871, or

32.9%, and $8,405,596, or 38.8%, respectively. As of June 30, 2022, total long-term liabilities of the governmental activities and business-type activities include net OPEB liabilities of $39,052,951 and $11,584,515 respectiv ely, which represents increases of $2,681,132, or 7.4%, and $2,809,092, or 32.0%, 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.

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

1.a
Packet Pg. 33
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
6 of the timing of related cash flows. Thus, some of th e revenues and expenses reported in this statement will have no effect on cash until some future fiscal period.

Both government-wide finan cial statements distinguish functions of the City that are p rincipally supported by taxes and intergovernmental revenues (governmental activities) from functions th at are intended to reco ver 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 o f 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-en d 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 spen t in the near futu re 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 go vernmental 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.

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 29 of this report.

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

1.a
Packet Pg. 34
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
7 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 prog rams, 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 31-35 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 go vernment-wide financial statements because the resour ces of these funds are not available to support the City’s programs. The accounting used for fiduciary funds is much like that us ed 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-purp ose 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 36-37 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a full understan ding of the data provided in the g overnment-wide and fund finan cial statements. The Notes to the finan cial statements are available on pages 39-89 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 additio n, the combining statements referred to earlier in connection with non-major governmental funds, internal service funds and fid uciary fun ds are presen ted immediately followin g the notes to the financial statements. Combining and individual fund statements and schedules are available on pages 103-114 of this report.

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 $159,125,942, an increase o f $8,967,154 over the prior year. Of this net increase, governmental activities net position increased by $7,170,429 and business-type activities increased by $1,796,725. The underlying reasons for major changes in each of these components will be discussed in the following sections.

1.a
Packet Pg. 35
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
8 Governmental Activities
In the case of the City, governmental activities increased the City of Colton’s net position by $7,170,429, an 84.1% 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 $22,212,622, or 11.9%.

Total assets government-wide increased by $22,212,622 because of increases cap ital assets and revenues that exceeded expenses. Total revenues decreased by $1,177,592, which is attributed to growth in sales taxes, property taxes, transient occupancy taxes, and the operating grants and contributions category for general government, which were offset by decreases in charges for services, investment income, and capital contributions and grants category. The City’s governmental expenses were $942,379 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 $62,971,448 exceeded governmental expenses of $55,801,019. This $7,170,429 increase in Governmental Activities increased the City’s total net position by 84.1%. 2022 2021 2022 2021 2022 2021
Current and Other Assets 100,354,341$ 83,597,911$ 123,166,251$ 117,900,113$ 223,520,592$ 201,498,024$ Capital Assets 79,883,671 78,311,778 108,092,070 105,985,331 187,975,741$ 184,297,109$ Lease Assets, Net 16,703 - 9,371 - 26,074 26,074
180,254,715 161,909,689 231,267,692 223,885,444 411,522,407 385,821,207 Total Assets
Deferred Outflow of Resources 28,680,739 24,813,143 5,756,265 4,999,580 34,437,004$ 29,812,723$ Long-term Debt Outstanding 139,962,531 169,089,375 71,457,391 81,337,114 211,419,922 250,426,489 Other Liabilities 12,280,801 6,448,721 8,185,873 5,530,408 20,466,674 11,979,129 Total Liabilities 152,243,332 175,538,096 79,643,264 86,867,522 231,886,596 262,405,618 Deferred Inflow of Resources 40,999,661 2,662,704 13,947,212 380,746 54,946,873 3,043,450 Net Position:

Net Inv estment in Capital
Assets 71,515,103 68,923,235 72,029,871 67,274,292 143,544,974 136,197,527 Restricted 30,596,051 27,387,272 3,373,481 3,677,027 33,969,532 31,064,299 Unrestricted (86,418,693) (87,788,475) 68,030,129 70,685,437 (18,388,564) (17,103,038) Total Net Position 15,692,461$ 8,522,032$ 143,433,481$ 141,636,756$ 159,125,942$ 150,158,788$ Governmental Activities Business-Type Activities Government-Wide Totals City of Colton's Net Position
As of June 30
The City’s Ch
ange in Net Position for Governmental as well as Business-Type activities is illustrated in the following table:

1.a
Packet Pg. 36
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
9 2022 2021 2022 2021 2022 2021
Revenues
Program Revenues:

Charges for Services 8,269,683$ 9,203,272$ 86,047,016$ 88,075,200$ 94,316,699$ 97,278,472$ Operating Contributions and Grants 6,833,007 5,414,145 6,833,007 5,414,145 Capital Contributions and Grants 4,156,484 4,609,335 4,156,484 4,609,335 General Revenues:

Property Taxes 13,347,412 12,666,201 13,347,412 12,666,201 Sales Taxes 14,143,702 13,630,270 14,143,702 13,630,270 Other Taxes 3,907,479 3,703,290 3,907,479 3,703,290 Use of Money and Property 894,619 1,728,740 (670,481) 104,236 224,138 1,832,976 Other 357,847 953,999 - - 357,847 953,999
Total Revenues 51,910,233 51,909,252 85,376,535 88,179,436 137,286,768 140,088,688 Expenses
General Government (329,592) 3,571,304 (329,592) 3,571,304 Public Safety 40,062,962 35,333,948 40,062,962 35,333,948 Community Services 7,766,888 7,608,513 7,766,888 7,608,513 Public Works 6,696,575 6,685,834 6,696,575 6,685,834 Interest on long-term debt 1,604,186 1,659,041 1,604,186 1,659,041 Electric 53,748,647 48,765,106 53,748,647 48,765,106 Water 8,836,901 9,898,697 8,836,901 9,898,697
Wastewater 9,933,047 9,664,981 9,933,047 9,664,981 Total Expenses 55,801,019 54,858,640 72,518,595 68,328,784 128,319,614 123,187,424 Increase/(Decrease) in Net
Position Before Transfers (3,890,786) (2,949,388) 12,857,940 19,850,652 8,967,154 16,901,264 Transfers 11,061,215 12,207,366 (11,061,215) (12,207,366) - - Increase/(Decrease) in Net Position 7,170,429$ 9,257,978$ 1,796,725$ 7,643,286$ 8,967,154$ 16,901,264$ Net Position - Beginning of Year, 8,522,032$ (735,946)$ 141,636,756$ 133,993,470$ 150,158,788$ 133,257,524$ as restated
Net Position - End of Year 15,692,461$ 8,522,032$ 143,433,481$ 141,636,756$ 159,125,942$ 150,158,788$ Governmental Activities Business-Type Activities Government-Wide Totals City of Colton's Changes in Net Position
Fiscal Year Ended June 30
The fo
llowing 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 (329,592)$ 3,024,235$
Public Safety 40,062,962 (34,958,833)
Community Services 7,766,888 (4,123,040)
Public Works 6,696,575 1,119,979
Interest on Long-Term Debt 1,604,186 (1,604,186)
Total Gov ernmental Activ ities 55,801,019$ (36,541,845)$ Cost of Governmental Programs

1.a
Packet Pg. 37
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
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 $1,796,725, which represents a 1.3% increase. The major components are as follows:

Electric Utility
The Electric Utility operations net cost of service decreased $5,680,003 over the prior year . Operating revenues decreased $696,462, or 1.1%, while operating expenses rose $4,983,541, or 10.2%.

Water Utility
Water Utility sales and charges for current services remained relatively flat, decreasing by $32,173, representing a 0.02% decrease. During the fiscal year, Water Utility operating expenses also decreased $1,061,796, or 10.7%.

Wastewater Utility
Operating revenues decreased by $1,299,549 or 12.1% over the prior period. Operating expenses increased by $268,066 or

2.8%.

Type of Business Total Cost of Serv ice Net Cost of Serv ice Electric Utility 53,748,647$ 9,373,823$
Water Utility 8,836,901 4,691,112
Wastewater Utility 9,933,047 (536,514)
Total Business-Type Activity 72,518,595$ 13,528,421$
Business-Type Activities

1.a
Packet Pg. 38
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
11 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, 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 $70,955,003, an increase of $7,104,868, or 11.1%, over the prior year. Of this balance, $206,628, or 0.3% is classified as non-spendable for inventory and prepaid costs; $29,770,069 or 42.0% is considered legally restricted fund balance to fund such areas as capital projects, public safety, debt service, and other services; an additional $29,902,238, or 42.1%, represents balances committed by the City Council for pension and OPEB liabilities; and the remaining 15.6%, or $11,076,068, is considered unassigned fund balance.

The City’s General Fund is the only major fund on the balan ce 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 $12,162,544, or 28.8% of its total fund balance of $42,271,410. 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, 2022, committed balances for pension and OPEB liabilities are $20,960,724 and $8,941,514 respectively, which represent 34.5% and 22.9% of the net pension and OPEB liabilities for governmental funds respectively. The total General Fund ending fund balance was $4,580,874 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 $1,398,832, or 4.7%, over the prior year.

Revenue Category Amount Percent of Total
Property Tax 13,347,412$ 33.0%
Sales Tax 14,143,702 35.0%
Other Taxes 3,907,479 9.7%
Licenses and Permits 2,090,893 5.2%
Intergovernmental 1,398,835 3.5%
Charges for Services 2,727,320 6.7%
Use of Money and Property 1,235,465 3.1%
Fines and Forfeitures 577,304 1.4%
Miscellaneous 993,355 2.5%
Total General Fund Revenue 40,421,765$ 100%
Revenue by Source - General Fund

1.a
Packet Pg. 39
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
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
2022
2021
2020
2019
2018
2017
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 HIGHLGIHTS
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. A ll 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 $44,285,345 and $45,618,823 respectively.

With respect to revenue, projections increased by $5,920,933 throughout the course of the year, mainly during the mid-year budget review process and subsequent actions taken to City Co uncil for increases. Actual re venues received for the fiscal year exceeded projections by $861,649 for a total of $51,067,927 in General Fund revenues. The positive budget variances pertain mostly to an increase in other taxes, licenses and permits, charges for services, and fines and forfeitures, which were supplemented with positive variances most other revenue categories and offset by a negative variance in the sales tax, use of money and property, miscellaneous, intergovernmental and transfers in categories.

On the expenditure side, the amended appropriations increased the budget by $6,523,587. Although there were a number of changes to the original budget, the larges t 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 $46,487,053, or $5,655,357 under-budget, primarily due to positive variances in almost every category, but specifically in Police, Community Services, Community Development, Public Works, and the General Government Departments.

CAPITAL AND LEASED ASSETS AND DEBT ADMINISTRATION
Capital and Leased Assets
The City’s net investment in capital and leased assets for its governmental and business-type activities as of June 30, 2022, was $188,001,815, which represents an increase of $3,704,706, or 2.0%, over the prior year. This investment in capital and

1.a
Packet Pg. 40
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
13 leased assets includes land, building and system improvements , machinery and equipment, park facilities, roads, highways, streets, bridges, and leases.

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):
 Cooley Drive (Duron to Valley Way)
 9th Street (Valley to C St.)
 Wildrose Ave. (Valley to Woodpine) and Indigo
 C St. (La Cadena to Mt. Vernon Ave.)
 La Cadena (Mt. Vernon Ave. to 9th St.)
 Cooley Lane (Cooley Drive to Hunts Lane)
 Sperry Avenue (Fairway to Valley)
 M Street (7th to La Cadena)
 Mill Street (Michigan - City Limits west of Ohio)
 Fairway Drive (Mt. Vernon Ave to Crossroad Drive)
 Meadow Lane (Old Ranch to South Limit)
 Rosedale Avenue (Palm to La Loma Avenue)
 Valley Boulevard (Grand Avenue to Rancho Avenue)
 Congress Street (8th Street to 7th Street)
 7th Street (Congress Street to La Cadena Drive)
 Rosedale Ave. (La Loma Ave. to Maryknoll) and Cordoba Ave/Litton (1800 SF)  Maryknoll Drive - (Graymoor to La Cadena )
 Olive St. - (Mt. Vernon to Bordwell)
 Laurel Ave.. - (Mt. Vernon toFairview)
 RV Center Drive - (Washington St to Milano Drive - Mobile Homes)  Washington Street - (RV Center to Mt Vernon Ave.)
 Mojave Dr. (Cahuila to Laurelwood)
 Laurel Wood St. (Mojave to Barton)
 Walin St. (Washington to Barton)
 John Matich Drive (Wild Canyon to Cordillera)
 Cordillera (North end to Bridge St.) and Bridge Street  Canyon Drive (Malibu Ct. Gunnison Way)
 Gunnison Way (Canyon Drive to Reche Cyn. Road)
 Hidden Valley Lane (Prado to Canyon Vista)
 Canyon Vista Dr. (Hidden Valley Ln. to Mesa Dr.) and Bridge Street  8th St.( Congress St. to O St.)
 Other capital improvement projects:
 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., an d 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..

1.a
Packet Pg. 41
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
14  Rancho Ave./N Street Intersection Improvement Project.  Fleming Park Restroom Improvement Project
Engineering
 Completed plans and specs and/or, started the bid process and construction of the following projects:
 HSIP Cycle 9 Improvement Project to the following crosswalks:
 Rancho Avenue, at H Street (adjacent to Colton High School)  Rancho Avenue, at G Street (adjacent to Colton High School)  Rancho Avenue, at F Street (adjacent to Colton High School)  Rancho Avenue, at E Street (adjacent to Colton High School)  C Street, at 2nd Street (near Colton High School)
 Laurel Street, at Valencia Drive (adjacent to Colton Middle School)  Laurel Street, east of Valencia Drive (adjacent to Colton Middle School)  Rancho Avenue, north of Louise Street (near to McKinley Elementary)  Johnston Street, at East Evelyn Circle (adjacent to McKinley Elementary)  Johnston Street, at Serrano Court (adjacent to McKinley Elementary)  Bordwell Avenue, at Olive Street (adjacent to Lincoln Elementary)  Olive Street, at Highland Avenue (adjacent to Lincoln Elementary)  O Street, at 8th Street (near Wilson Elementary)
 FY 21-22 Asphalt Paving Project
 Valley Blvd (Wildrose to Rexford St)
 Riverside Ave. (Key to Center St.)
 Bond, Key Trade Streets
 3rd St. (Valley to E St.)
 3rd St. (L to north end.)
 Cahuilla (Mohave to East End)
 Tara Ridge Ct. (Canyon Vista to End)
 Fairview Ave (Colton Ave. to Olive Place)
 Teresa St (Laurel Ave. to Alida St.)
 Laurel Ave. (Teresa to Latham)
 7th St. (La Cadena to O St.)
 C St. (BNSF U/P to east of Cemetery entrance)
 N St. (La Cadena to 9th)
 O St. (10th to 11th)
 Cooley Drive ( Valleywood to Ashley Way)
 Pennsylvania Ave. (C St. to F St.)
 Olive Ave (6th to Rancho Ave.; City Limit to Meridian Ave)  Laurel Ave. (La Cadena to Mt. Vernon Ave.)
 La Cadena Dr. - South bound - Iowa to I-215 on ramp
 La Cadena Drive -NB from Litton to Tropica Rancho
 South La Cadena Street Improvement Project ( between Tropica Rancho Rd. and Litton Ave.)  CDBG Alley Project
 7th to La Cadena - between Hanna & B; Laurel St. to Hillcrest St. between Holly & Fairview  2nd St to 4th St. between E & F
 4th to 5th between K & L St
 4th to 5th St. between M & N St
 FY 2022 Slurry Seal project
 Development – Completed plan check for grading, hydrology, water quality management plan, off/on site improvement for the following projects:
 Twelve (12) Single Family Residential developments throughout the City of Colton

1.a
Packet Pg. 42
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
15  One (1) Accessory Dwelling Unit (ADU)
 One (1) Mobile Home Residential Development
 La Quinta Hotel at 1395 E. Washington Street. New Four 4-Story 73 room hotel, 43,331 square feet limited service hotel with a fitness center, meeting room, and pool on 1.2 acres.  Two (2) Parcel Mergers
 1,100 square foot drive-through commercial building with outdoor seating facing street side and 860 square foot retail space on 0.37 acres at 1089 N. Rancho Ave.  Two (2) industrial buildings (One at 8,000 square feet and second one at 2,000 square feet) at 12277 S.

La Cadena Dr.
 Tract Map 20340, Residential tract of 49 single family attached condominiums (townhomes) at 1116 Santo Antonio Dr.

Business-Type Activity
Electric Department
 Completed Projects
 Substation security lighting upgrade
 Replace North switchgear arrestors & insulators
 Century Substation Transformer LTC #1 Oil addition
 Century Substation Transformer # 2 Oil Filtering and Adding  Century Substation Transformer LTC # 2 Contact and Seal Replacement  Century Substation Transformer LTC # 2 Oil Filtering and Adding  HUB Substation replaced 66kV Bus knife switch for CB152-1 for Line 1  Drew’s Substation replaced 66kV Bus Post Insulator ion Transformer  Installed 1,084 OpenWay Bridge meters ( 871 residential and 213 commercial)  Ongoing/Future Projects
 Pole and cable replacements
 Tree clearance, composite fiberglass arm replacements and extra patrols for Wildfire mitigation  LED Dusk to Dawn replacements
 Substation security cameras at all Substations
 Field Reclosure for Reche Canyon 12kV
 Reconductor Hub Transformer #1
 Installation Drews to Agua Mansa Switchyard fiber 96
 Installation EV Chargers at Hub
 Replace Century transformer monitoring devices
 Replace Drews transformer monitoring devices
 LTC maintenance and oil replacement
 Breaker Installation at the Hub Station
 HUB Substation Transformer #2 Reconditioning Century Substation Transformer # 2 Oil Radiator Replacement
 Reconfigure Citrus 12kV to Back Feed ARMC
Water Department
 Completed Projects
 Prado Booster Station Upgrades
 Ongoing/Future Projects
 AMI Endpoint Project
 6MG Rialto Reservoir – Engineering & Design Services Awarded  Well 31 – Construction & Equipping of New Well at Fogg Street in Progress

1.a
Packet Pg. 43
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
16  Well 32 Drilling & Construction of New Well at Rich Dauer Park– Notice to Proceed Issued on 5/10/22 – In Progress
 Well 33 Drilling & Construction of New Well at Rialto Well Site - Notice to Proceed Issued on 5/10/22 – In Progress
 Well Abandonments 13, 16, 26, Katz, and 3 Sullivan Wells – In Progress  Washington Bridge Waterline Relocation Project – In Progress (28% Compete)  16” Transmission Line on F Street – Installation of new 16-inch DIP transmission waterline from La Cadena Drive to Mt. Vernon Ave.
 La Loma Reservoir (3MG) Project – Engineering and updates on the previously completed 2018 plans for construction of a new 3MGD Reservoir at the La Loma Site.

Wastewater Department
 Ongoing/Future Projects
 Wastewater Treatment Plant – Design, Upgrades, and Plant Expansion – In Progress  New Wastewater Treatment Plant Admin Building –In process  RIX Facility – On-going Project Upgrades and Sand Replenishment  Sludge Bed Wall Construction – Construction of new, reinforced walls at WWTP  Storm Drain Recharge at Meridian
 Ion Exchange for Wells 15, 17 – Wells 15 & 17 scheduled to be turned off once the supply is available from Emhart Combined Remedies (treatment plant) in December 2022 Additional information on the City’s capital assets is available in Note 5 on pages 59-60 of this report. 2022 2021 2022 2021 2022 2021
Land $15,306,911 $15,306,911 $6,269,991 $6,269,991 $21,576,902 $21,576,902 Construction in progress 9,334,275 9,871,801 6,852,251 2,446,078 16,186,526 12,317,879 Intangible Assets 336,000 344,000 336,000 344,000
Structure and
Improvements 15,138,982 11,731,653 14,091,662 15,507,272 29,230,644 27,238,925 Furniture and Equipment 3,754,205 3,773,625 14,684,325 14,675,253 18,438,530 18,448,878 Capacity R ig hts - - 3,185,461 3,318,188 3,185,461 3,318,188 Infrastructure 36,349,298 37,627,788 62,672,380 63,424,549 99,021,678 101,052,337 Net Lease Assets 16,703 - 9,371 - 26,074 -
To t a l 79,900,374$ 78,311,778$ 108,101,441$ 105,985,331$ 188,001,815$ 184,297,109$ (ne t of depreciation)
Business-T ype
Activities T otal
Governmental
Activities
Long-Term Debt
Governmental
Activities
The City did not enter into any new debt agreements during the fiscal year. Overall, long-term debt for governmental activities was $40,131,639, a decrease of $1,994,025 as compared to the prior year. The primary components of the debt are the Taxable Pension Funding Bonds, Series 2007 with a balan ce of $20,423,685, Claims and Judgements with an estimated

1.a
Packet Pg. 44
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
17 liability of $7,609,890, and the Pub lic Finance Author ity Lease Revenue Bond s, 2007 Series B, which has a ba lance of $7,715,000 as of June 30, 2022.

Proprietary Funds
The major components of long-term debt fo r business-type activities are bonds to finance infrastructure needs of the City’s utilities. Overall, long-term debt for proprietary funds is $46,627,435, a decrease of $4,309,869, or 8.5%, 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 62-69 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Although the focus of this Annual Financial Report is the economic condition of the City for the fiscal year ending June 30, 2022, management continued to consider the ongoing local and national economic effects of the COVID-19 pandemic and the civil unrest in Russia and Ukraine when adopting the Fiscal Year 2022-23 budget. Although the U.S. economy’s performance in the past fiscal year has surpassed expectations, significantly increased inflation, continued supply chain shortages and delays, increases in natural gas prices, and other related issues continue to challenge business leaders and legislators.

The U.S. economy ended 2021 with GDP growing 6.9% in the fourth quarter. With that growth, inflation grew by a startling 7%, smashing through the Federal Reserve’s 2% target. At the end of 2021, the unemployment rate was just 3.9%, down from 6.4% at the beginning of the year. At its March 16, 2022 meeting, the Federal Reserve projected economic growth would slow to 2.8% in 2022.
2022 2021 2022 2021 2022 2021
Revenue bonds 7,715,000$ 8,250,000$ $44,369,274 $47,823,172 52,084,274$ 56,073,172$ Capital lease obligations 285,383 396,793 - - 285,383 396,793 Taxable Pension Bonds 20,423,685 21,249,554 - - 20,423,685 21,249,554 Notes Payable 1,621,269 - 1,621,269 2,493,978 3,242,538 2,493,978 Lease Liability 15,991 39,920 9,155 26,650 25,146 66,570 Compensated absences 2,327,262 2,107,349 627,737 593,504 2,954,999 2,700,853 Other long-term liabilities 7,743,049 10,042,128 - - 7,743,049 10,042,128 To t a l 40,131,639$ 42,085,744$ $46,627,435 $50,937,304 86,759,074$ 93,023,048$ City of Colton Outstanding Debt at June 30
Business-T ype
Activities T otal
Governmental
Activities

1.a
Packet Pg. 45
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
18 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-at-home orders and the switch to remote education 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 we re marginally offset with d ecreases in fuel-related sales tax. Sales tax, traditionally the City’s second or third hi ghest General Fund revenue source, rocketed to the top general revenue source for the City. Additionally, the housing market growth continues to remain robust as we emerge from the pandemic. By the close of Q2 2022, the City of Colton’s average and median single-family residential prices surpassed pre- Great Recession values and continued to push to record-breaking highs.

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 has significantly improved its financial position through prudent, long-range policy decisions and sound fiscal management. 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 co py of the City’s 2022-23 budget is accessibl e 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 a dditional 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.

1.a
Packet Pg. 46
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(19)

BASIC FINANCIAL STATEMENTS

1.a
Packet Pg. 47
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(20)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 48
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(21)
Governmental Business-T ype
Activities Activities Total
ASSETS
Cash and Investments 86,754,208 $ 82,651,405 $ 169,405,613 $ Receivables:

Accounts 2,185,101 11,406,453 13,591,554 Taxes 2,858,201 - 2,858,201
Lease 4,390,296 8,627,256 13,017,552 Notes and Loans 8,953 - 8,953
Accrued Interest 128,989 155,938 284,927
Internal Balances (1,424,687) 1,424,687 - Prepaid Items 21,087 559,657 580,744
Prepaid Bond Insurance - 14,000 14,000
Deposits - 2,329,014 2,329,014
Due from Other Governments 1,588,999 37,763 1,626,762 Inventories 185,541 1,601,314 1,786,855
Land Held for Resale 84,131 - 84,131
Restricted Assets:

Cash and Investments 209,755 - 209,755
Cash with Fiscal Agent 2,674,720 14,358,764 17,033,484 Capital Assets Not Being Depreciated 24,641,186 13,122,242 37,763,428 Capital Assets, Net of Accumulated Depreciation 55,242,485 94,969,828 150,212,313 Lease Assets, Net 16,703 9,371 26,074
Total Assets 179,565,668 231,267,692 410,833,360

DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Refunding 32,897 90,163 123,060
Deferred Amount from OPEB 11,675,741 3,463,446 15,139,187 Deferred Amount from Pensions 16,972,101 2,202,656 19,174,757 Total Deferred Outflows of Resources 28,680,739 5,756,265 34,437,004

LIABILITIES
Accounts Payable 2,975,407 6,193,660 9,169,067 Accrued Interest 496,292 520,016 1,016,308
Unearned Revenues 7,370,205 - 7,370,205
Deposits Payable 465,736 1,472,197 1,937,933 Due to Other Governments 973,161 - 973,161
Noncurrent Liabilities:

Due Within One Year 6,579,181 4,948,969 11,528,150 Due in More than One Year 33,552,458 41,678,466 75,230,924 OPEB Liability - Due Within One Year 1,529,619 453,740 1,983,359 OPEB Liability - Due in More than One Year 37,523,332 11,130,775 48,654,107 Net Pension Liability - Due in More than One Year 60,777,941 13,245,441 74,023,382 Total Liabilities 152,243,332 79,643,264 231,886,596

DEFERRED INFLOWS OF RESOURCES
Deferred Amount related to Leases 4,268,569 8,018,902 12,287,471 Deferred Amounts from OPEB 343,231 101,815 445,046
Deferred Amounts from Pensions 36,387,861 5,826,495 42,214,356 Total Deferred Inflows of Resources 40,999,661 13,947,212 54,946,873

NET POSITION (DEFICIT)
Net Investment in Capital Assets 71,515,103 72,029,871 143,544,974 Restricted:

Public Safety 694,706 - 694,706
Capital Projects 25,362,911 - 25,362,911
Debt Service 2,857,868 3,373,481 6,231,349 Education 42,061 - 42,061
Community Services 12,734 - 12,734
Affordable Housing 944,216 - 944,216
Air Quality Projects 681,555 - 681,555
Unrestricted (87,107,740) 68,030,129 (19,077,611) Tota
l Net Position (Deficit) 15,003,414$ 143,433,481 $ 158,436,895 $

1.a
Packet Pg. 49
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
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 359,455$ 1,364,056$ 1,330,587$ -$ Public Safety 40,062,962 2,658,775 2,445,354 - Community Services 7,766,888 2,547,771 872,799 223,278 Public Works 6,696,575 1,699,081 2,184,267 3,933,206 Interest on Long-Term Debt 1,604,186 - - -
Total Governmental Activities 56,490,066 8,269,683 6,833,007 4,156,484 Business-Type Activities:

Electric Utility 53,748,647 63,122,470 - - Water Utility 8,836,901 13,528,013 - - Waste Water Utility 9,933,047 9,396,533 - - Total Business-Type Activities 72,518,595 86,047,016 - - Total Primary Government 129,008,661$ 94,316,699$ 6,833,007$ 4,156,484$

1.a
Packet Pg. 50
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2022
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
Inter
governmental - State Shared
Sales Taxes
Motor Vehicle In Lieu - Unrestricted
Investment Income
Other
Transfers
Total General Revenues and
Transfers

CHANGE IN NET POSITION
Net Position - Be
ginning of Year

NET POSITION - END OF YEAR
Net (Expenses) Revenue and Changes in Net Position
Primary Government
Governmental Business-T ype
Activities Activities Total
2,335,188$ - $ 2,335,188$
(34,958,833) - (34,958,833)
(4,123,040) - (4,123,040)
1,119,
979 - 1,119,979
(1,604,186) - (1,604,186)
(37,230,892) - (37,230,892)
- 9,
373,823 9,373,823
- 4,691,112 4,691,112
- (536,514) (536,514)
- 13,
528,421 13,528,421
(37,230,892) 13,528,421 (23,702,471)
13,347,
412 - 13,347,412
1,455,684 - 1,455,684
2,096,462 - 2,096,462
355,333 - 355,333
14,143,702 - 14,143,702
62,612 - 62,612
894,619 (670,481) 224,138
295,235 - 295,235
11,061,215 (11,061,215) -
43,712,274 (11,731,696) 31,980,578
6,481,382 1,796,725 8,278,107
8,522,032 141,636,756 150,158,788
15,003,414$ 143,433,481$ 158,436,895$

1.a
Packet Pg. 51
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(24)
ARPA Other Total
Special Revenue Governmental Governmental
General Fund Funds Funds
ASSETS
Cash and Investments 40,238,516$ 6,227,153$ 26,794,334$ 73,260,003$ Receivables:

Accounts 1,114,974 - 1,070,127 2,185,101
Taxes 2,750,373 - 107,828 2,858,201
Lease 4,390,296 - - 4,390,296
Notes and Loans 8,953 - - 8,953
Accrued Interest 62,147 9,019 39,612 110,778
Prepaid Items 21,087 - - 21,087
Due from Other Governments 42,647 - 1,546,352 1,588,999 Due from Other Funds 461,155 - 22,999 484,154
Inventories 185,541 - - 185,541
Land Held for Resale - - 84,131 84,131
Restricted Assets:

Cash and Investments 39,279 - 63,395 102,674
Cash and Investments with Fiscal Agents - - 2,674,720 2,674,720 Total Assets 49,314,968$ 6,236,172$ 32,403,498$ 87,954,638$

LIABILITIES
Accounts Payable 1,964,905$ -$ 370,230$ 2,335,135$ Unearned Revenues - 6,295,685 1,074,520 7,370,205 Deposits Payable 465,736 - - 465,736
Due to Other Governments 973,161 - - 973,161
Due to Other Funds - - 484,154 484,154
Total Liabilities 3,403,802 6,295,685 1,928,904 11,628,391

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 60,234 - 1,731,488 1,791,722
Amounts related to Leases 4,268,569 - - 4,268,569 Total Deferred Inflows of Resources 4,328,803 - 1,731,488 6,060,291

FUND BALANCES
Nonspendable:

Prepaid Items 21,087 - - 21,087
Inventories 185,541 - - 185,541
Restricted:

Public Safety - - 694,706 694,706
Capital Projects - - 24,567,489 24,567,489
Debt Service - - 2,857,868 2,857,868
Education - - 42,061 42,061
Affordable Housing - - 944,216 944,216
Air Quality Projects - - 663,729 663,729
Committed to:

Pension Obligation 20,960,724 - - 20,960,724
OPEB Obligation 8,941,514 - - 8,941,514
Unassigned 11,473,497 (59,513) (1,026,963) 10,387,021 Tota
l Fund Balances 41,582,363 (59,513) 28,743,106 7 0,265,956 Total Liabilities, Deferred Inflows of Resources
and Fund Balances 49,314,968$ 6,236,172$ 32,403,498$ 87,954,638$

1.a
Packet Pg. 52
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

RECONCILIATION TO THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(25)
Fund Balances - Total Governmental Funds 70,265,956$
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.

Capital Assets, net 78,228,309 $
Lease Assets, net 16,703 78,245,012
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)
Loan Obligations (269,392)
Tax
able Pension Funding Bonds, Series 2007 (20,423,685)
Lease Revenue Bonds, 2007 Series B (7,715,000)
Deferred Loss on R
efunding to be Amortized 32,897
Bond Discount to be Amortized 124,597
Bond Premium to be Amortized (65,718)
Co
mpensated Absences (2,256,428)
Lease Payable (15,991)
Pension related debt applicable
to the City governmental activates are not due and
payable in the current period and accordin gly are not reported as fund liabilities.

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

Deferred Outflows of Resources 16,972,101
Deferred Inflows of Resources (36,387,861)
Net Pension Liability (60,777,941)
OPEB-related debt applicable to the City's governmental activities is not due and payable in the current period and accordin gly 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 chan ges in these amounts affect only the government-wide statements for governmental activities.

Deferred Outflows of Resources 11,675,741
Deferred Inflows of Resources (343,231)
OP
EB Liability (39,052,951)
Accrued interest payable for the current portion of interest due on bonds are not reported in the governmental funds. (496,292) Rev
enues 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. 1,791,722 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. 5,529,176
Net Position of Governmental Activities 15,003,414$

1.a
Packet Pg. 53
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(26)
ARPA Other Total
Special Revenue Governmental Governmental
General Fund Funds Funds

REVENUES
Property Taxes 13,347,412$ -$ 638,958$ 13,986,370$ Sales Taxes 14,143,702 - - 14,143,702
Other Taxes 3,907,479 - - 3,907,479
Licenses and Permits 2,090,893 - - 2,090,893
Intergovernmental 1,398,835 1,145,015 8,513,855 11,057,705 Charges for Services 2,727,320 - 215,120 2,942,440 Investment Income (Loss) 1,235,465 (59,513) (152,423) 1,023,529 Fines and Forfeitures 577,304 - 1,459 578,763 Contributions - - 673,497 673,497
Miscellaneous 993,355 - 56,763 1,050,118
Total Revenues 40,421,765 1,085,502 9,947,229 51,454,496

EXPENDITURES
Current:

General Government 877,886 1,145,015 10,799 2,033,700 Public Safety 34,263,671 - 2,257,788 36,521,459
Community Services 6,716,689 - 1,029,209 7,745,898 Public Works 2,743,262 - 1,833,811 4,577,073
Capital Outlay 423 - 2,039,270 2,039,693
Debt Service:

Principal Retirement - Leases 22,764 - 1,165 23,929
Interest and Fiscal Charges - Leases 81 - 4 85 Principal Retirement 127,401 - 1,740,000 1,867,401 Interest and Fiscal Charges 14,959 - 1,336,684 1,351,643 Total Expenditures 44,767,136 1,145,015 10,248,730 56,160,881 Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,345,371) (59,513) (301,501) (4,706,385)

OTHER FINANCING SOURCES (USES)
Transfers In 10,646,162 - 3,338,527 13,984,689
Transfers Out (2,408,964) - (453,519) (2,862,483) Total Other Financing Sources (Uses) 8,237,198 - 2,885,008 11,122,206 NET CHANGE IN FUND BALANCES 3,891,827 (59,513) 2,583,507 6,415,821 Fund Balances - Beginning of Year 37,690,536 - 26,159,599 63,850,135 FUND BALANCES - END OF YEAR 41,582,363$ (59,513)$ 28,743,106$ 70,265,956$

1.a
Packet Pg. 54
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

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, 2022
See accompanying Notes to Financial Statements.
(27)
Net Change In Fund Balances - Total Governmental Funds 6,415,821$ 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 4,189,282
Depreciation (3,130,574)
Los
s on Disposal of Capital Assets (1,629)
I
n the statement of activities, the cost of lease assets are allocated over their lease term as amortization expense. (23,217) P
ension expenditures 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. (3,160,232) The i
ssuance 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 lon g-term debt and related items.

Debt Issued or Incurred:

Accreted Interest (379,131)
P
rincipal Repayments:

Loan Obligations 127,401
Taxable Pension Funding Bonds, Series 2007 1,205,000
Lease Revenue Bonds, 2007 Series B 535,000
Bond Defeasance Amortization (12,551)
B
ond Premium and Discount Amortization (1,735)
Accr
ued interest for long-term liabilities. This is the net change in accrued interest for the current period. 29,208
Repayment of lease principal as an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. 23,929
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. (229,654)
OPEB expendit
ures 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. 144,729 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. 691,810
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. 57,925 Change in Net Position of Governmental Activities 6,481,382$

1.a
Packet Pg. 55
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(28)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 56
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

BUDGETARY COMPARISON STATEMENT BY DEPARTMENT

GENERAL FUND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(29)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 37,690,536$ 37,690,536 $ 37,690,536 $ - $

RESOURCES (INFLOWS)
Taxes 11,951,000 13,296,000 13,347,412 51,412 Sales Taxes 11,100,000 14,357,000 14,143,702 (213,298) Other Taxes 2,910,543 3,035,543 3,907,479 871,936 Licenses and Permits 2,080,960 1,925,560 2,090,893 165,333 Intergovernmental 1,206,985 1,412,331 1,398,835 (13,496) Charges for Services 1,942,504 2,132,925 2,727,320 594,395 Investment Income (Loss) 1,690,000 1,605,000 1,235,465 (369,535) Fines and Forfeitures 241,000 271,000 577,304 306,304 Miscellaneous 622,700 1,110,133 993,355 (116,778) Transfers In 10,539,653 11,060,786 10,646,162 (414,624) Amounts Available for Appropriations 81,975,881 87,896,814 88,758,463 861,649

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Current:

General Government:

City Council 248,128 248,128 209,582 38,546 City Clerk 340,313 354,466 263,815 90,651 City Manager 1,108,969 1,274,806 1,076,728 198,078 Human Resources 2,378,643 2,517,153 2,079,605 437,548 Financial Services 3,187,804 3,389,727 3,027,404 362,323 City Attorney 830,250 1,230,250 1,095,372 134,878 City Treasurer 61,669 65,089 61,951 3,138
Nondepartmental -
178,928 710,201 (531,273)
Cost Allocation (8,290,737) (8,290,737) (7,646,772) (643,965) Public Safety:

Police 19,332,314 20,835,931
19,621,089 1,214,842
Fire 13,536,154 14,515,237
14,642,582 (127,345)
Community Services:

Parks, Recreation, and Family Services 3,759,831 4,609,992 3,515,987 1,094,005 Community Development 3,399,253 5,195,034 3,200,702 1,994,332 Public Works:

Public Services 3,206,834 3,390,691
2,743,262 647,429
Capital Outlay 2,300 2,300 423 1,877
Debt Service:

Principal Retirement - Leases -
22,764 22,764 -
I
nterest and Fiscal Charges - Leases - 81 81 -
P
rincipal Retirement 127,401 127,401 127,401 - I
nterest and Fiscal Charges 14,959 14,959 14,959 -
Tr
ansfers Out 2,374,738 2,460,210 2,408,964 51,246 Total Charges to Appropriations 45,618,823 52,142,410 47,176,100 4,966,310 BUDGETARY FUND BALANCE - END OF YEAR 36,357,058$ 35,754,404 $ 41,582,363 $ 5,827,959 $

1.a
Packet Pg. 57
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

BUDGETARY COMPARISON STATEMENT

ARPA SPECIAL REVENUE
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(30)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR -$ -$ -$ -$

RESOURCES (INFLOWS)
Intergovernmental - 7,440,000 1,145,015 (6,294,985) Investment Income (Loss) - 3,000 (59,513) (62,513) Amounts Available for
Appropriations - 7,443,000 1,085,502 (6,357,498)

CHARGES TO APPROPRIATIONS

(OUTFLOWS)
Current:

General Government - 1,805,576 1,145,015 660,561 Total Charges to Appropriations - 1,805,576 1,145,015 660,561

BUDGETARY FUND BALANCE - END
OF YEAR -$ 5,637,424$ (59,513)$ (5,696,937)$

1.a
Packet Pg. 58
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2022
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
ASSETS
Current Assets:

Cash and Investments 45,720,523$ 26,689,157$ 10,241,725$ 82,651,405$ 13,494,205$ Receivables:

Accounts 8,492,630 1,641,964 1,271,859 11,406,453 - Lease 8,627,256 - - 8,627,256 -
Accrued Interest 102,962 37,747 15,229 155,938 18,211 Prepaid Items 819 455 558,383 559,657 - Prepaid Bond Insurance - 14,000 - 14,000 -
Deposits 2,329,014 - - 2,329,014 -
Due from Other Governments - 37,763 - 37,763 -
Inventories 1,442,477 158,837 - 1,601,314 -
Restricted Assets:

Cash and Investments - - - - 107,081
Cash with Fiscal Agent 3,373,481 5,929,966 5,055,317 14,358,764 - Total Current Assets 70,089,162 34,509,889 17,142,513 121,741,564 13,619,497 Noncurrent Assets:

Capital Assets, Not Being Depreciated 3,505,884 8,626,873 989,485 13,122,242 113,957 Capital Assets, Net of Accumulated
Depreciation 39,073,378 22,269,903 33,626,547 94,969,828 1,541,405 Lease Assets, Net 2,440 3,921 3,010 9,371 -
Total Noncurrent Assets 42,581,702 30,900,697 34,619,042 108,101,441 1,655,362 Total Assets 112,670,864 65,410,586 51,761,555 229,843,005 15,274,859

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 90,163 - - 90,163 - Deferred Amount from OPEB 1,999,515 678,407 785,524 3,463,446 - Deferred Amount from Pensions 1,271,362 488,754 442,540 2,202,656 - Total Deferred Outflows of Resources 3,361,040 1,167,161 1,228,064 5,756,265 -

1.a
Packet Pg. 59
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2022
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

LIABILITIES
Current Liabilities:

Accounts Payable 3,887,410$ 1,406,400$ 899,850$ 6,193,660$ 640,272$ Accrued Interest 237,629 204,706 77,681 520,016 - Deposits Payable 1,350,817 121,380 - 1,472,197 - Accrued Compensated Absences 338,884 188,734 100,119 627,737 55,204 Accrued Claims and Judgments - - - - 2,494,860
Leases Payable 2,335 3,846 2,974 9,155 -
Bonds and Notes Payable 2,320,000 865,132 1,126,945 4,312,077 - Total Current Liabilities 8,137,075 2,790,198 2,207,569 13,134,842 3,190,336 Noncurrent Liabilities:

Accrued Compensated Absences - - - - 15,630
Accrued Claims and Judgments - - - - 5,115,030
OPEB Liability 6,687,967 2,269,132 2,627,416 11,584,515 - Net Pension Liability 7,645,202 2,939,068 2,661,171 13,245,441 - Bonds and Notes Payable 18,555,604 17,054,314 6,068,548 41,678,466 - Total Noncurrent Liabilities 32,888,773 22,262,514 11,357,135 66,508,422 5,130,660 Total Liabilities 41,025,848 25,052,712 13,564,704 79,643,264 8,320,996

DEFERRED INFLOWS OF RESOURCES
Amounts Related to Leases 8,018,902 - - 8,018,902 - Deferred Amounts from Pensions 3,363,023 1,292,858 1,170,614 5,826,495 - Deferred Amount from OPEB 58,780 19,943 23,092 101,815 - Total Deferred Inflows of Resources 11,440,705 1,312,801 1,193,706 13,947,212 -

NET POSITION
Net Investment in Capital Assets 21,472,422 18,436,238 32,121,211 72,029,871 1,450,858 Restricted for Debt Service 3,373,481 - - 3,373,481 - Unrestricted 38,719,448 21,775,996 6,109,998 66,605,442 5,503,005 Total Net Position 63,565,351$ 40,212,234$ 38,231,209$ 142,008,794 6,953,863$ Prior Years' Accumulated Adjustment to Reflect the
Consolidation of Internal Service Funds Activities
Related to the Enterprise Funds 792,336
Current Year's Adjustment to Reflect the
Consolidation of Internal Service Funds
Activities Related to the Enterprise Funds 632,351
Net Position of Business-Type Activities 143,433,481$

1.a
Packet Pg. 60
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
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

OPERATING REVENUES
Sales and Service Charges 60,781,946$ 13,356,185$ 9,251,982$ 83,390,113$ 8,268,744$ Miscellaneous 1,288,623 171,828 144,551 1,605,002 93 Total Operating Revenues 62,070,569 13,528,013 9,396,533 84,995,115 8,268,837

OPERATING EXPENSES
Salaries and Benefits 5,459,140 2,165,255 2,662,729 10,287,124 1,333,785 Maintenance and Operations 3,175,670 4,087,673 3,825,054 11,088,397 2,590,196 Generation 2,068,648 - - 2,068,648 - Purchased Power 34,782,491 - - 34,782,491 - Contractual Services - - - - 270,596
Claims and Benefits - - - - 3,038,606
Charges from Other Funds 4,328,141 1,236,738 1,915,732 7,480,611 - Depreciation and Amortization Expense 3,402,849 894,832 1,468,172 5,765,853 160,065 Lease Amortization Expense 3,390 7,578 6,311 17,279 -
Total Operating Expenses 53,220,329 8,392,076 9,877,998 71,490,403 7,393,248 OPERATING INCOME 8,850,240 5,135,937 (481,465) 13,504,712 875,589

NONOPERATING REVENUES (EXPENSES)
Lease Revenue 1,051,901 - - 1,051,901 -
Net Investment Income (Loss) (315,331) (253,881) (101,269) (670,481) (124,323) Interest Expense (790,642) (635,455) (212,655) (1,638,752) - Other Expenses - (2,000) - (2,000) -
Loss on Disposal of Capital Assets (19,791) - - (19,791) - Total Nonoperating Revenues
(Expenses) (73,863) (891,336) (313,924) (1,279,123) (124,323) INCOME (LOSS) BEFORE TRANSFERS 8,776,377 4,244,601 (795,389) 12,225,589 751,266 TRANSFERS OUT (10,820,746) (137,652) (102,817) (11,061,215) (60,991) CHANGE IN NET POSITION (2,044,369) 4,106,949 (898,206) 1,164,374 690,275 Net Position - Beginning of Year 65,609,720 36,105,285 39,129,415 140,844,420 6,263,588 NET POSITION - END OF YEAR 63,565,351$ 40,212,234$ 38,231,209$ 142,008,794$ 6,953,863$ Adjustment to Reflect the Consolidation of Internal
Service Fund Activities Related to Enterprise Funds 632,351$ Change in Net Position - Enterprise Funds 1,164,374

CHANGE IN NET POSITION OF BUSINESS-
TYPE ACTIVITIES 1,796,725$

1.a
Packet Pg. 61
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
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

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 61,805,637$ 13,726,264$ 9,977,574$ 85,509,475$ 8,271,286$ Cash Paid to Suppliers for Goods and Services (44,433,894) (4,559,666) (5,112,736) (54,106,296) (6,290,983) Cash Paid to Employees for Services (5,434,846) (2,154,016) (2,664,030) (10,252,892) (1,343,526) Lease Revenue 443,547 - - 443,547 -
Net Cash Provided By
Operating Activities 12,380,444 7,012,582 2,200,808 21,593,834 636,777

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Paid to Other Funds (10,820,636) (137,652) (102,817) (11,061,105) (60,991) Net Cash Used by Noncapital
Financing Activities (10,820,636) (137,652) (102,817) (11,061,105) (60,991)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (1,402,811) (5,387,789) (1,101,783) (7,892,383) (674,879) Lease Payment (3,494) (7,653) (6,347) (17,494) -
Principal Paid on Capital Debt (2,215,000) (716,592) (1,097,191) (4,028,783) - Interest Paid on Capital Debt (1,059,736) (666,599) (231,386) (1,957,721) - Net Cash Used by Capital and
Related Financing Activities (4,681,041) (6,778,633) (2,436,707) (13,896,381) (674,879)

CASH FLOWS FROM INVESTING ACTIVITIES
Cash Effect on Net Decrease in Fair Value (625,405) (354,756) (146,128) (1,126,289) (171,176) Interest Received 243,048 78,695 36,399 358,142 35,693 Net Cash Used by Investing
Activities (382,357) (276,061) (109,729) (768,147) (135,483)

NET CHANGE IN CASH AND CASH
EQUIVALENTS (3,503,590) (179,764) (448,445) (4,131,799) (234,576) Cash and Cash Equivalents - Beginning of Year 52,597,594 32,798,887 15,745,487 101,141,968 13,835,862

CASH AND CASH EQUIVALENTS - END
OF YEAR 49,094,004$ 32,619,123$ 15,297,042$ 97,010,169$ 13,601,286$

CASH AND CASH EQUIVALENTS
Current Cash and Investments 45,720,523$ 26,689,157$ 10,241,725$ 82,651,405$ 13,494,205$ Restricted Cash and Investments - - - - 107,081 Restricted Cash with Fiscal Agent 3,373,481 5,929,966 5,055,317 14,358,764 - Total Cash and Cash Equivalents 49,094,004$ 32,619,123$ 15,297,042$ 97,010,169$ 13,601,286$

1.a
Packet Pg. 62
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(35)
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) 8,850,240$ 5,135,937$ (481,465)$ 13,504,712$ 875,589$ Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:

Depreciation and Amortization Expense 3,406,239 902,410 1,474,483 5,783,132 160,065 Lease Revenue 443,547 - - 443,547 -
Changes in Assets, Deferred Outflows of Resources,
Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease In:

Accounts Receivable (512,333) 156,005 581,041 224,713 2,449 Prepaid Items 3,181 1,842 (181) 4,842 1,350
Deposits Receivable (5,103) - - (5,103) -
Inventories (245,848) (19,379) - (265,227) -
Deferred Amounts from OPEB (717,614) (270,529) (261,110) (1,249,253) Deferred Amounts from Pension 286,314 140,502 33,863 460,679 - Increase (Decrease) In:

Accounts Payable 810,199 1,204,776 401,878 2,416,853 310,539 Deposits Payable 247,401 42,246 - 289,647 -
Claims and Judgments - - - - (703,474)
Compensated Absences 24,294 11,239 (1,301) 34,232 (9,741) OPEB Liability 1,607,459 652,607 549,026 2,809,092 - Net Pension Liability (5,017,609) (2,176,340) (1,211,647) (8,405,596) - Deferred Amounts from OPEB (34,890) (9,861) (15,228) (59,979) - Deferred Amounts from Pension 3,234,967 1,241,127 1,131,449 5,607,543 - Net Cash Provided (Used) by
Operating Activities 12,380,444$ 7,012,582$ 2,200,808$ 21,593,834$ 636,777$

NONCASH INVESTING, CAPITAL, AND

FINANCING ACTIVITIES
Loss on Disposal of Capital Assets (19,791)$ -$ -$ (19,791)$ -$

1.a
Packet Pg. 63
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(36)
Private-Purpose
Trust Custodial
Funds Funds
ASSETS
Cash and Investments 2,875,045$ 429,471$
Receivables:

Taxes - 5,903
Accrued Interest 4,147 660
Deposits - 15,783
Deferred Charges -
Restricted Assets:

Cash and Investments 336,407 -
Total Assets 3,215,599 451,817

LIABILITIES
Accounts Payable - 11,263
Accrued Interest 177,244 -
Deposits Payable 230,799 -
Due to Other Governments - 37,763
Long-Term Liabilities:

Due in One Year 1,215,000 -
Due in More than One Year 9,121,078 -
Total Liabilities 10,744,121 49,026

NET POSITION
Held for Other Individuals and Organizations (7,528,522) 402,791 Total Net Position (7,528,522)$ 402,791$

1.a
Packet Pg. 64
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(37)
Private-Purpose
Trust Custodial
Funds Funds

ADDITIONS
Contributions 27,340$ -$
T
axes 1,645,815 532,468
Evidence Deposits - 40,420
Interest and Change in Fair Value of Investments (9,175) (2,784) Total Additions 1,663,980 570,104

DEDUCTIONS
Administrative Expenses 5,728 180,036
Professional Services -
178,184
Utilities -
61,490
Principal Payment - 25,093
Interest Expense 363,437 8,307
Contributions to City of Colton - 631,182
Total Deductions 369,165 1,084,292
CHANGE IN NET POSITION 1,294,815 (514,188)
Net Pos
ition - Beginning of Year, As restated (8,823,337) 916,979 NET POSITION - END OF YEAR (7,528,522)$ 402,791$

1.a
Packet Pg. 65
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(38)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 66
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(39)
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 in clude 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 gov ernment’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 co mponent unit to provide specific financial benefits to, or impose specific financial burde ns 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 th ere is a potential for the component units to impose financial burd ens on the City. Therefore, these component units are presented as blended component units for financial repo rting 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 substa nce 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.

1.a
Packet Pg. 67
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Reporting Entity (Continued)
The Colton Utility Aut hority (the Utility Authority) was created 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 Marks-Roos 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.

In September 2000, the City entered into an agreement with the Utility Authority. The agreement was formed for the sole purpose for arranging for the Utility Authority to carry out all aspects of operations and maintenance of the City’s water and wastewater enterprise pursuant to and in accordance with the provisions of the Utility Authority agreement. The agreement is for a term of 55 years ending in 2055.

The City continues to own the water and wastewater enterprise. The Utility Authority has been afforded long-term nonexclusive access and use of the facilities to perform the services required under the agreement. As part of the agreement, payments are to be made from 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. These amounts are included as maintenance and operations expense on the statement of revenues, expenses and changes in net position.

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 govern ment-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.

1.a
Packet Pg. 68
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) 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 private- purpose 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.

1.a
Packet Pg. 69
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The government-wide fi nancial 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 d eferred inflow s of resources (whether current or noncurrent) a ssociated with their activity are included on t heir statements of net position. Operating statements present increases (revenues) and decreases ( expenses) in total net position. Under the accrual basis of accounting, revenues ar e 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 recogn ized 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 fina ncial resources measurement focus and the modified accrual basis of accoun ting. Under the current financial resources measurement focu s, 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 ot her financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of source s and uses of “available spendable resources” during a period. Noncurrent portions of long-te rm receivables due to governmental funds are reported on their balance sheets in spit e of their spending measurement focus.

1.a
Packet Pg. 70
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(43)
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 availa ble. 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 account ing.

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 curr ent 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 funds:
 General Fund is used to account for sources and uses of financial resource s applicable to the general government operation of the City. All general operating revenues a nd expenditures that ar e not restricted or accounted for in another fund are recorded in the General Fund.
 American Rescue Plan Act (“ARPA”) Fund is used to account for revenues and expenditures made for the ARPA Act funds received from the County and State to respond to the COVID-19 pandemic.

The City reports the following major proprietary funds:
 The Electric Utility Fund is used to account for the production, distributi on 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.

1.a
Packet Pg. 71
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(44)
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 and the Successor Agency to the Redevelopment Agency for the City of Colton (Successor Agency). The Cemetery private purpose trust fund holds d onations made to the City for the Cemetery, and the Successor Agency private purpose trust fund accounts for the assets and liabilities of the former rede velopment agency and its allocated revenue to pay estimated inst allment payments of enforceable obligations until the obligations of th e 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.

1.a
Packet Pg. 72
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. New Accounting Pronouncement Adopted
GASB 87
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Lease
s. This standard requires the recognition of certain lease assets and liabilitie
s for leases that previously were classified as operating leases an d as inflows of r
esources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability an d an intangible right-to-use lease asset,
and a lessor is required to recognize a leas e
receivable a
nd a deferred inflow of resources.

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 mo nths or less from the date of acquisit
ion. 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 fin ancial 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 a
n orderly transaction between ma rket
participant
s at the measurement date. Investments that are not traded on a market, such as investme
nts in external pools, are valued based on the stated fair value represented by the external pool.

F. Receivables and Payables
Activity bet
ween funds that are representative of lending /borrowing arrangements outstanding
at the end of the fiscal year are referred to as either “d ue to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from o ther funds” (i.e.,
the noncurrent portion of interfund loans).

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

1.a
Packet Pg. 73
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(46)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Receivables and Payables (Continued)
Property tax revenue is recognize d 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 pe riod, or expected to be co llected 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 fi rst 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 pro perty 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 pro perty 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 th e consumption method of accountin g for inventories. Certain payments to vendors reflect cost s applicable to future accounting periods and are recorded as prepaid ite ms 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 pro ceeds of debt issues, as well as certain resources set aside fo r their repayment, are classifie d as restricted assets in the financial statements because their use is limited by applicable bond covenants.

I. Capital and Lease 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 sta tements. The government defines capi tal assets as assets with an init ial, 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. Leased assets, which include equipment, follow the same capitalization thresholds as capital assets. Leased assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term.

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

1.a
Packet Pg. 74
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(47)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Capital and Lease Assets (Continued)
Property, plant, and eq uipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated us eful lives:

Building and Structures 40 Years
Furniture and Equipment 7 Years
Capacity Rights 55 Years
Intangible 30 Years
Public Domain Infrastructure 50 Years
Leased assets are amor
tized using the straight-line method over the shorter of the lease term or useful life of the underlying asset.

J. Deferred Outflows/Inflows of Resources
In addition to assets, th e statement of net position and the governmental funds balance sheet reports a separate section for deferred outflows of resources. This separ ate financial statement element, deferred outflows of resources , represent a consumptio n of net assets t hat 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 reporte d in the government wide statement of net position an d the proprietary funds financial statements. A deferred loss on re funding results from the difference in the carrying value of refun ded 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 pension and OPEB for differences between expected a nd actual experience. These amounts are amortized over a closed period equ al 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 clo sed period equal to the average expected remaining service lives of all employees that are provided with OPEB th rough the plans.

1.a
Packet Pg. 75
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(48)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilit ies, the statement of net position and the governmental fu nds balance sheet reports a separate section for deferred inflows of resources. This separate financial sta tement element, deferred inflows of resources , represent an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (r evenue) 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 from lease receivable is initially measured at the initial amount of the lea se receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, th e deferred inflow of resources is recognized as revenue over the life of the lease term.
 Deferred inflows related to pensions resulting from differences between expected and actual experience. These amounts are amortized over a closed perio d equal to the avera ge of the expected remaining service lives of all employees that are provided with pensions through the plans.
 Deferred inflows from OPEB resulting from changes in assumption s. These amounts are amortized over a clo sed period equal to the average expected remaining service lives of all employees that are provided with OPEB th rough the plans.
 Deferred inflows related to pensions for the changes in employer’s proportion and differences between the employer’s contributions and the em ployer’s proportionate share of contributions. These amounts are amortized over a closed period equ al to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.  Deferred inflows 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.

1.a
Packet Pg. 76
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(49)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. 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.

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 accr ued 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.

L. 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. 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.

M. 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 othe r governments or (b) by law through con
stitutional provisions or enabling legislation.

1.a
Packet Pg. 77
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(50)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Fund Balance Classification (Continued)
Committed includes amounts that can only be used for specific purposes pursu ant 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 $20,960,724 as of June 30, 2022.

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 $8,941,513 as of June 30, 2022.

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.

1.a
Packet Pg. 78
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(51)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Net Position Classification
In the gover nment-wide financial statements and proprietary fund financial statemen ts, 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.” O. 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 befor e unrestricted – net position is applied.

P. Proprietary Funds Operating and Nonoperating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating reven ues and expenses genera lly 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.

1.a
Packet Pg. 79
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(52)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. 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) pl ans (Plans) and additions t o/deductions from the Plans’ fiduciary net position have b een determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of empl oyee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

R. Use of Estimates
The preparation of financial st atements in accordance with U.S. GAAP requ ires 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 year- end 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.

1.a
Packet Pg. 80
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(53)
NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Deficit Fund Balances
The following funds contained deficit fund balances as of June 30, 2022:

Deficit
Amount
ARPA Special Revenue Fund 59,513$
Other Governmental Special Revenue Funds:

Community Child Care 33,562
Community Development Block Grant 354,085
Miscellaneous Grants 639,018
Internal Service Fund:

Insurance 1,063,772
Private-Purpose Trust Fund:

Successor Agency of the Former RDA 8,581,997
These fund balance defi
cits 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, 2022, are reported in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 169,405,613 $
Restricted:

Cash and Investments 209,755
Cash with Fiscal Agent 17,033,484
Statement of Net Position - Fiduciary Funds:

Cash and Investments 3,304,516
Restricted:

Cash and Investments 336,407
Total Cash and Investments 190,289,775 $
Petty Cash 4,717$
Deposits with Financial Institutions 11,415,976
Restricted Deposits with Financial Institutions 336,407 Investments 178,532,675
Total Cash and Investments 190,289,775$

1.a
Packet Pg. 81
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(54)
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 Percenta ge Investment
Authorized Investment Type Maturity of Portfolio in One Issue r 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.

1.a
Packet Pg. 82
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(55)
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 Percenta ge Investment
Authorized Investment Type Maturity of Portfolio in One Issue r 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, 2022, 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 144,531,908$ -$ -$ 144,531,908$
United States Government Sponsored
Agency Securities:

FHLB 2,181,366 8,890,685 - 11,072,051 FFCB - 2,866,150 - 2,866,150

FHLMC - - - -

FNMA - - - -
Freddie Mac - 2,977,958 - 2,977,958
Money Market Mutual Funds 51,147 - - 51,147 Held by Fiscal Agent:

Money Market Mutual Funds 17,033,461 - - 17,033,461 Total 163,797,882$ 14,734,793$ -$ 178,532,675$

1.a
Packet Pg. 83
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(56)
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 2022 Rating AAA AA+ Rated
LAIF 144,531,908$ N/A -$ -$ 144,531,908$
United States Government Sponsored
Agency Securities:

FHLB 11,072,051 N/A - 11,072,051 -
FFCB 2,866,150 N/A - 2,866,150 -
Freddie Mac 2,977,958 N/A - 2,977,958 -
Money Market Mutual Funds 51,147 A - 51,147
Held by Fiscal Agent:

Money Market Mutual Funds 17,033,461 A 17,033,461 - - Total 178,532,675$ 17,033,461$ 16,916,159$ 144,583,055$ 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 th e 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 11,072,051 $
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.

1.a
Packet Pg. 84
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(57)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk (Continued)
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, 2022, all the City’s deposits with financial institutions were covered by federal depository insurance limits or were held in collateralized accounts.

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 rela tive 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, 2022:

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

FHLB - $
11,072,051$ -$
11,072,051$
FFCB -
2,866,150
-
2,866,150
Freddi
e Mac -
2,977,958
-
2,977,958
Tot
al Leveled Investments -$
16,916,159$ -$
16,916,159
LA
IF* 144,531,908
M
oney Market Mutual Funds* 17,084,608
To
tal Investment Portfolio 178,532,675$
* Not
subject to fair value measurements.

1.a
Packet Pg. 85
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(58)
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 is uncertain of the collectability 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, 2022, the Housing Authority has disbursed $3,630,445 of the maximum loan amount of $4,924,000. The City is uncertain of the collectability of these loans, and therefore, the City has recorded an allowance for uncollectible for the outstanding balance, including accrued interest, of $3,740,004 at June 30, 2022.

1.a
Packet Pg. 86
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(59)
NOTE 5 CAPITAL AND LEASED ASSETS
Capital asset activity for the year ended June 30, 2022, was as follows:

Governmental Activities
Balance at Balance at
July 1, 2021 Additions Deletions Transfers June 30, 2022 Capital Assets, Not Being Depreciated:

Land 15,306,911$ -$
-$
-$
15,306,911$
Construction in Progress 9,871,801 3,874,261 - (4,411,787) 9,334,275 Total Capital Assets, Not
Being Depreciated 25,178,712 3,874,261 - (4,411,787) 24,641,186 Capital Assets, Being Depreciated:

Structures and Improvements 23,995,033 295,721 - 3,713,122 28,003,876
Furniture and Equipment 17,276,111 694,177 (620,513) 39,324 17,389,099
Infrastructure 125,531,464 - - 659,341 126,190,805 Total Capital Assets,
Being Depreciated 166,802,608 989,898 (620,513) 4,411,787 171,583,780 Less Accumulated Depreciation for:

Structures and Improvements (12,263,380) (601,514) - - (12,864,894) Furniture and Equipment (13,502,486) (751,292) 618,884 - (13,634,894) Infrastructure (87,903,676) (1,937,831) - - (89,841,507) Total Accumulated
Depreciation (113,669,542) (3,290,637) 618,884 - (116,341,295) Total Capital Assets,
Being Depreciated, Net 53,133,066 (2,300,739) (1,629) 4,411,787 55,242,485 Lease Assets
Right to Use Asset - Equipment 39,920 - - - 39,920 Accumulated amortization - (23,217) - - (23,217)
Total Lease Assets,
Being Amortized, Net 39,920 (23,217) - - 16,703 Total Governmental Activities
Capital and Lease Assets, Net 78,351,698$ 1,550,305$ (1,629)$ -$ 79,900,374$
Depreciatio
n expense was charged in the following functions in the statement of activities for the year ended June 30, 2022, as follows:

General Government 100,711$
Public Safety 483,638
Community Services 193,078
Public Works 2,353,145
Internal Service Funds 160,065
Total 3,290,637$
Amortization expense w
as charged to general government.

1.a
Packet Pg. 87
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(60)
NOTE 5 CAPITAL AND LEASED ASSETS (CONTINUED)
Business-Type Activities
Capital asset activity for the year ended June 30, 2022, was as follows:

Balance at Balance at
July 1, 2021 Additions Deletions Transfers June 30, 2022 Capital Assets, Not Being Depreciated:

Land 6,269,991$ -$ -$ -$ 6,269,991$
Construction in Progress 2,446,078 4,809,899 - (403,726) 6,852,251 Total Capital Assets, Not
Being Depreciated 8,716,069 4,809,899 - (403,726) 13,122,242 Capital Assets, Being Depreciated:

Intangible Assets 400,000 - - - 400,000
Structures and Improvements 44,784,469 54,936 - - 44,839,405 Furniture and Equipment 44,781,849 1,278,274 (312,531) - 45,747,592 Capacity Rights 7,300,000 - - - 7,300,000
Infrastructure 121,886,242 1,749,274 (26,849) 403,726 124,012,393 Total Capital Assets,
Being Depreciated 219,152,560 3,082,484 (339,380) 403,726 222,299,390 Less Accumulated Depreciation for:

Intangible Assets (56,000) (8,000) - - (64,000) Structures and Improvements (29,277,197) (1,470,546) - - (30,747,743) Furniture and Equipment (30,106,596) (1,265,213) 308,542 - (31,063,267) Capacity Rights (3,981,812) (132,727) - - (4,114,539) Infrastructure (58,461,693) (2,889,367) 11,047 - (61,340,013) Total Accumulated
Depreciation (121,883,298) (5,765,853) 319,589 - (127,329,562) Total Capital Assets,
Being Depreciated, Net 97,269,262 (2,683,369) (19,791) 403,726 94,969,828 Lease Assets
R
ight to Use Asset - Equipment 26,650 - - - 26,650
Accumulated amortization - (17,279) - - (17,279)
Total Lease Assets,
Being Amortized, Net 26,650 (17,279) - - 9,371 Total Business-Type Activities
Capital and Lease Assets, Net 106,011,981$ 2,109,251$ (19,791)$ -$ 108,101,441$ Depreciation/amortization expense
was charged in the following functions in the statement of activities for the year ended June 30, 2022, as follows:

Electric Utility 3,406,239$
Water Utility 902,410
Waste Water Utility 1,474,483
Total 5,783,132 $

1.a
Packet Pg. 88
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(61)
NOTE 6 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS
Interfund receivable and payable balances at June 30, 2022, are as follows:

Due To/From Other Funds
Receivable Payable Amount
General Fund Other Governmental Funds 461,155$
Other Governmental Funds Other Governmental Funds 22,999 Total 484,154$
The interfund balances were made
to cover negative cash balances and other temporary
loans at June 30, 2022.

Transfers
Transfers In Transfers Out Amount
General Fund Other Governmental Funds 146,162$
Electric Utility Enterprise Fund 10,500,000
Other Governmental Funds General Fund 2,408,964
Other Governmental Funds 307,357
Electric Utility Enterprise Fund 320,746
Water Utility Enterprise Fund 137,652
Waste Water Utility Enterprise
Fund 102,817
Internal Service Funds 60,991
Total 13,984,689$
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.

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.

1.a
Packet Pg. 89
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(62)
NOTE 7 LONG-TERM LIABILITIES
Governmental Activities
Changes in long-term liabilities for the governmental activities for the year ended June 30, 2022, are as follows:

Due Due in
Balance Balance Within More Than
July 1, 2021 Additions Deletions June 30, 2022 One Year One Year City:

Other Debt:

Taxable Pension Funding
Bonds, Series 2007 21,249,554$ 379,131$ (1,205,000)$ 20,423,685$ 1,345,000$ 19,078,685$ Direct Borrowings:

Loan Obligations 396,793 - (127,401) 269,392 132,204 137,188 Other-Long Term Liabilities:

Compensated Absences 2,107,349 2,194,612 (1,974,699) 2,327,262 2,036,126 291,136 Claims and Judgments
(Note 12) 8,313,364 1,356,618 (2,060,092) 7,609,890 2,494,860 5,115,030 County Memorandum
of Understanding 1,829,298 - - 1,829,298 - 1,829,298 Lease Liability 39,920 - (23,929) 15,991 15,991 - Public Financing Authority:

Other Debt:

Lease Revenue Bonds,
2007 Series B 8,250,000 - (535,000) 7,715,000 555,000 7,160,000 Net Unamortized Premiums
and Discounts (60,614) - 1,735 (58,879) - (58,879) Total Long-Term Liabilities
Governmental Activities 42,125,664$ 3,930,361$ (5,924,386)$ 40,131,639$ 6,579,181$ 33,552,458$ Taxable Pe
nsion 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, 2022, the balance includes $13,895,000 principal and $6,528,685 accreted interest. The bonds have no reserve requirement.

1.a
Packet Pg. 90
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(63)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Taxable Pension Funding Bonds, Series 2007 (Continued)
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 1,065,000 415,732 1,480,732
2028-2032 405,000 1,873,532 2,278,532
2033-2037 4,110,000 1,482,960 5,592,960
2038 1,975,000 58,406 2,033,406
Total 13,895,000 6,418,558$ 20,313,558$
Plus: Accreted Interest 6,528,685
Total Taxable Pension
Funding Bonds, Series 2007 20,423,685$
The liability is generally paid from the Taxable P
ension 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 $2,327,262 at June 30, 2022, 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 $7,609,890 will be paid in future years from the Insurance Internal Service Fund.

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, 2022, 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.

Loan Obligations
The City entered into a loan agreement to acquire fire truck. The final payment is due in fiscal year 2023-2024.

At June 30, 2022, the annual requirement to repay the remaining outstanding indebtedness is as follows:

1.a
Packet Pg. 91
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(64)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Loan Obligations (Continued)
At June 30, 2022, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
2023 132,204 $ 10,156 $ 142,360 $
2024 137,188 5,172 142,360
Total 269,392$ 15,328$ 284,720$
Colton Public Financin
g 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, 2022, a total of $914,932 was held in reserve.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 665,000 234,895 899,895
2028-2032 3,805,000 672,464 4,477,464
2032-2033 870,000 20,662 890,662
Total 7,715,000$ 2,145,729$ 9,860,729$
Lease Liability
The City leases office equipment for vari ous lease terms under long-term, noncancelable lease agreements. The lease expire at various dates through 2023. This liability, amounting to $15,991 at June 30, 2022, will be paid in future years.

1.a
Packet Pg. 92
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(65)
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, 2022, are as follows:

Due Due in
Balance Balance Within More Than
July 1, 2021 Additions Deletions June 30, 2022 One Year One Year Revenue Bonds:

Colton Utility Authority
Water Revenue:

Bonds, Series 2017 16,620,000 $ - $ (375,000)$ 16,245,000$ 515,000$ 15,730,000$ Unamortized Bond Premium 621,717 - (24,146) 597,571 - 597,571 Colton Utility Authority
Installment Sale Agreement 7,217,173 - (566,074) 6,651,099 582,551 6,068,548 Colton Public Financing
Authority Revenue
Refunding Bonds,
Series 2007A 5,570,000 - (245,000) 5,325,000 255,000 5,070,000 Colton Public Financing
Authority Electric Revenue
Refunding Bonds,
Series 2012A 16,015,000 - (1,970,000) 14,045,000 2,065,000 11,980,000 Unamortized Bond Premium 1,779,282 - (273,678) 1,505,604 - 1,505,604 Total 47,823,172$ -$
(3,453,898)$ 44,369,274$ 3,417,551$ 40,951,723$ Notes Payable:

Direct Borrowings and Placements:

State of California Water
Resource Control Board 1,075,511 $ - $
(531,117)$ 544,394$ 544,394$ -$
N
ote Payable 1,418,467 -
(341,592)
1,076,875 350,132 726,743
Other Long-Term Liabilities:

Compensated Absences 593,504 686,375 (652,142) 627,737 627,737 -
Lease Li
ability 26,650 -
(17,495)
9,155
9,155
-
T
otal Long-Term Liabilities
Business-Type Activities 50,937,304$ 686,375$ (4,996,244)$ 46,627,435$ 4,948,969$ 41,678,466$ Colton Utili
ty 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, 2022, 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, 2022, total amounts collected exceeded the minimum requirement.

1.a
Packet Pg. 93
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(66)
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, 2022, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 455,000 549,519 1,004,519
2028-2032 2,630,000 2,383,845 5,013,845
2033-2037 3,175,000 1,839,750 5,014,750
2038-2042 3,735,000 1,280,606 5,015,606
2043-2047 4,470,000 550,400 5,020,400
Total 16,245,000$ 8,969,546$ 25,214,546$
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, pa yable 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 annual requireme nts to amortize the indebtedness as of June 30, 2022, including interest are as follows:

Year Ending June 30, Principal Interest Total
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 653,404 117,152 770,556
2028-2032 3,563,753 289,130 3,852,883
Total 6,651,100$ 1,054,564$ 7,705,664$

1.a
Packet Pg. 94
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(67)
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. 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, 2022, 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, 2022, total amounts collected exceeded the minimum requirement.

Pledged Revenues
The City has pledged future electric utility revenues to repay revenue bonds. At June 30, 2022, $14,045,000 remains outstanding to be repaid by future electric revenues, if such revenues prove insufficient. For the fiscal year ended June 30, 2022, the net revenue available for service of this debt was $2,885,871. The debt principal and interest paid in fiscal year 2021- 2022 equals $2,770,750 (96% of available pledged net revenues).

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest are as follows:

Year Ending June 30, Principal Interest Total
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 305,000 199,533 504,533
2028-2032 1,735,000 773,705 2,508,705
2033-2037 2,195,000 322,289 2,517,289
Total 5,325,000$ 2,218,665$ 7,543,665$

1.a
Packet Pg. 95
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(68)
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 is sued 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 issuan ce 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, 2022, 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, 2022, total amounts collected exceeded the minimu m requirement.

Pledged Revenues
The City has pledged future electric utility revenues to repay revenue bonds. At June 30, 2022, $5,325,000 remains outstanding to be repaid by future electric revenues, if such revenues prove insufficient. For the fiscal year ended June 30, 2022, the net revenue available for service of this debt was $1,095,281. The debt principal and interest paid in fiscal year 2021- 2022 equals $503,983 (46% of available pledged net revenues).

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 2,510,000 257,250 2,767,250
2028-2029 2,635,000 131,750 2,766,750
Total 14,045,000$ 2,557,750$ 16,602,750$
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, 2022, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
2023 544,394$ 8,166$ 552,560$

1.a
Packet Pg. 96
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(69)
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, 2022, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
2023 350,132$ 26,922$ 377,054$
2024 358,885 18,169 377,054
2025 367,858 9,196 377,054
Total 1,076,875$ 54,287$ 1,131,162$
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1.L. This liability, amounting to $627,737 at June 30, 2022, will be paid in future years from the respective enterprise funds.

Lease Liability
The City leases office equipment for vari ous lease terms under long-term, noncancelable lease agreements. The lease expire at various dates through 2023. This liability, amounting to $9,155 at June 30, 2022, will be paid in future years.

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, 2022:

Deferred Deferred
Pension Outflows Inflows Pension
Liability of Resources of Resources Expense
Miscellaneous 30,206,250 $ 5,023,161 $ (13,287,331)$ 600,173$ Safety 43,817,132 14,151,596 (28,927,024) 11,909,061 Total 74,023,382$ 19,174,757$ (42,214,355)$ 12,509,234$

1.a
Packet Pg. 97
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(70)
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 multiple-employer 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 full- time 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 d eath 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.

1.a
Packet Pg. 98
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(71)
NOTE 8 PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at year ended June 30, 2022, are summarized as follows:

Miscellaneous
Prior to On or After
Hire Date June 1, 2012 Januar y 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 Monthl y 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 11.050% 6.250%
Payment of Unfunded Liability 3,501,335$ - $ 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 Januar y 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 Monthl y for Life Monthl y 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% 13.750% Required Employer Contribution Rates:

Normal Cost Rate 25.590% 23.620% 13.980%
Payment of Unfunded Liability 2,442,476$ 2,149$ 7,531$ 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 Januar y 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 Monthl y for Life Monthl y 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 Emplo
yee Contribution Rates 9.000% 9.000% 13.750%
Required Employer Contribution Rates:

Normal Cost Rate 25.590% 23.620% 13.980%
Payment of Unfunded Liability 2,173,729$ 4,892$ 8,534$

1.a
Packet Pg. 99
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(72)
NOTE 8 PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Employees Covered
At the measurement date ended June 30, 2021, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Miscellaneous
Inactive Employees or Beneficiaries Currently
Receiving Benefits 393
Inactive Employees Entitled to but Not Yet
Receiving Benefits 287
Active Employees 200
Total 880
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, 2022, included $5,023,161 for the City’s Miscellaneous Plan and $6,665,476 for the City’s Safety Plan resulting in a total amount paid of $11,688,637.

The pension liability for governmental activities is primarily liquidated from the general fund.

B. Net Pension Liability
The City’s n
et pension liability for each plan is measured as the total pension liabilit y, less t
he pension plan’s fiduciary net position. The net pension liability of each of the plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, using stan dard update procedures. A summary of principal a
ssumptions and methods used to determine the net pension liability is shown below.

1.a
Packet Pg. 100
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(73)
NOTE 8 PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2020, actuarial valuations we re determined using the following actua
rial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method Entry-Age Normal Entr y-Age Normal Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Pro
jected Salary Increase (1) (1)
Mortality Rate Table (2) (2)
Postretirement 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 mortalit y 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 Purchasin g 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 ov er 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.

1.a
Packet Pg. 101
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(74)
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.

1.a
Packet Pg. 102
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(75)
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, 2021, are as follows:

Increase (Decrease)
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2020
(Measurement Date) 162,201,227$ 113,851,434 $ 48,349,793 $ Changes in the Year:

Service Cost 2,386,656 -
2,386,656
Interest on the
Total Pension
Liability 11,314,393 - 11,314,393
D
ifferences Between Expected -
and Actual Ex
perience (843,481) - (843,481)
C
ontribution - Employer - 4,590,979 (4,590,979)
C
ontribution - Employee - 992,202 (992,202)
Net Investment Income -
25,531,661 (25,531,661)
Administrative Expenses - (113,731) 113,731
Benefit Payments, Including
Refunds of Employee
Contributions (8,615,641) (8,615,641) -
Ne
t Changes 4,241,927 22,385,470 (18,143,543) Balance at June 30, 2021
(Measurement Date) 166,443,154 $ 136,236,904 $ 30,206,250 $ Proportionate Share of Net Pension Liabilit
y
As of measurement date June 30, 2021, 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 43,817,132$

1.a
Packet Pg. 103
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(76)
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 proportio nate share of th
e net pension liability. The net pension liability of each of the plan s is measured as of June 3
0, 2021, and the total pension liability for each plan used to calculate the net pension liabilit y was determined by an actuarial valuation as of June
30, 2020, rolled forward to June 30, 2021, using standard update procedures. The City’s propo
rtionate 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 measureme
nt dates ended June 30, 2020 and 2021, were as follows:

Safety
Proportion - June 30, 2020 0.95962%
Proportion - June 30, 2021 1.24853%
Change - Increase (Decrease) 0.28891%
Sensitivit
y 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 Safet y
1% Decrease 6.15% 6.15%
Net Pension Liability 51,904,313$ 71,958,275$
Current Discount Rate 7.15% 7.15%
Net Pension Liability 30,206,250$ 43,817,132$
1% Increase 8.15% 8.15%
Net Pension Liability 12,287,428$ 20,702,659$
Pension Pla
n Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

1.a
Packet Pg. 104
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(77)
NOTE 8 PENSION PLANS (CONTINUED)
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense of $600,173 and $11,909,061 for the Miscellaneous and Safety Plans, respectively. At June 30, 2022, the City reported deferred outflows of re sources 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 5,023,161 $ - $
6,665,476$ -$
Di
fferences Between Expected
and Actual Experience - (616,450) 7,486,120 -
Change in Assumptions - - - -
Change in Employer's Proportion
and Differences Between the
Emplo
yer's Contributions and the
Employer's Proportionate Share
of Contributions -
- - (2,847,406)
Net
Differences Between Projected
and Actual Earnings on Plan
Investments (12,670,881) - (26,079,618)
Tot
al 5,023,161$ (13,287,331)$ 14,151,596$ (28,927,024)$ Amounts of
$5,023,161 and $6,665,476 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, 2023. 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 Safet y
2023 (3,705,504)$ (3,935,095)$
2024 (3,036,916) (4,569,039)
2025 (3,040,919) (5,760,023)
2026 (3,503,992) (7,176,747)
2027 -
-
Thereafter -
-
E. Payable to the Pension Plans
At June 30,
2022, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2022.

1.a
Packet Pg. 105
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(78)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description
The City provides other postemployment 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.

Employees Covered
As of the June 30, 2021, measurement date, the following current and former employees were covered by the benefit terms under the plan:

Inactive Employees or Beneficiaries Currently
Receiving Benefits 146
Active Employees 279
Total 425
To
tal OPEB Liability
The City’s OPEB liability of $50,637,466 was measured as of June 30, 2021, and was determined by an actuarial valuation as of June 30, 2021.

Actuarial Assumptions and Other Inputs
The total OPEB liability as of June 30, 2021, 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, 2021
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 2.09%
Inflation 2.50%
Projected Salary Increase 3.00% per annum, in aggregate Healthcare Cost Trend Rates 5.8% decreasin g to 3.9% by 2076 Pre-retirement Turnover Derived from CalPERS pension plan Mortality Derived from CalPERS pension plan updated
to reflect most recent experience study

1.a
Packet Pg. 106
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(79)
NOTE 9 OTHER POSTEMPLOYMENT 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. The use of this index results to discount rate of 2.09% at measurement date June 30, 2021.

Change in Assumption
Discount rate was changed from 2.44% to 2.09%.

Change in Benefit Terms
Change in maximum benefit amount to be paid by the City based on employee group and hire date.

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

Total
OPEB
Liability
Balance at June 30, 2020
(Measurement Date) 45,147,243$
Changes in the Year:

Service Cost 2,328,012
Interest on the Total OPEB Liability 1,134,611
Changes in Assumptions 6,042,181
Changes in Benefit Terms (2,106,047)
Plan Experience 41,105
Benefit Payments (1,949,639)
Net Changes 5,490,223
Balance at June 30, 2021
(Measurement Date) 50,637,466$
Sensitivity of the T
otal 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
(1.09%) (2.09%) (3.09%)
Total OPEB Liability 58,372,908$ 50,637,466$ 44,413,147$

1.a
Packet Pg. 107
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(80)
NOTE 9 OTHER POSTEMPLOYMENT 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
(4.80%) (5.80%) (6.80%)
Total OPEB Liability 44,458,336$ 50,637,466 $ 58,614,834 $ OPEB Expense and Deferred Outfl
ows/Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB expense of $3,338,488. At June 30, 2022, 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
Employer Payment of OPEB Benefits
Subsequent to Measurement Date 1,983,359$ -$
Differences Between Expected and Actual
Experience 3,838,639 -
Change in Assumptions 9,317,189 (445,046)
Tota
l 15,139,187$ (445,046)$
An amount of $1,983,359 reported as deferred outflows of resource s related to employer
payment of OPEB benefits subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ending June 30, 2023.

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
2023 1,981,915 $
2024 2,311,551
2025 2,369,256
2026 2,369,256
2027 2,015,829
Thereafter 1,662,975

1.a
Packet Pg. 108
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(81)
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 bas ic financial statements; however, it is included as a component of its power supply expenses.

During the fiscal year ended June 30, 2022, the Electric Fund made payments totaling $7,047,590 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.

1.a
Packet Pg. 109
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(82)
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, 2022, 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 233,550 $ 84,246 $ 4.31% 10,066 $ 3,631 $ Natural Gas Projects:

Natural Gas Pinedale Project 1,553 509 100.00% 1,553 509 Natural Gas Barnett Project 3,212 1,053 100.00% 3,212 1,053 Prepaid Natural Gas
Project No. 1 268,165 107,407 10.76% 28,845 11,553 Total Bonds Payable 43,676$ 16,746$
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.

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.

1.a
Packet Pg. 110
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(83)
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 expired 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.

1.a
Packet Pg. 111
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(84)
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.

1.a
Packet Pg. 112
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(85)
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.

1.a
Packet Pg. 113
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(86)
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 fro
m use and operation of the wastewater enterprise. As compensation for the exclusive
use of the wastewater enterprise, the City made a onetime advance pa yment of $400,000 and will pay approximately $300,000
in annual payments thereafter. The initial
payment of $400,000 was recorded as intangible assets, am ortized over the term of the agreement, which is 30
years.

During the fiscal year 2021-2022, the City made the annual payment of $318,349, which is included in the maintenance and operations expense in the Wastewater Utility Enterprise Fund.

1.a
Packet Pg. 114
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(87)
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 fire, police, and electric employee workers’ compensation claims and $75 thousand each for all other employee claims, and $35 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 $2 million per occurrence and $3 million per law enforcement occurrence. There is excess liability coverage of $35 million for amounts above the $2 million self-insured retention (SIR) and $3 million law enforcement SIR.

Workers’ Compensation: The City is self-insured for workers’ compensation risk up to $1 million per occurrence for fire, police and electric and $75 thousand per occurrence for all other employees. Excess coverage is in place for amounts above the $1 million for fire, police, and electric employees and $75 thousand for all other employees 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.

Cyber Liability: The City has SIR for up to $25 thousand and purchases insurance for up to $1 million.

Earthquake: The City purchases earthquake insurance for up to $26,857,000 with a minimum deductible of 5%.

Terrorism: The City purchases terrorism insurance for up to $5 million with a $10 thousand deductible.

Volunteer: The City purchases insurance for volunteers up to $150 thousand per accident with a $500 deductible.

Drone: The City purchased drone insurance for up to $5 million.

1.a
Packet Pg. 115
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(88)
NOTE 12 COMMITMENTS AND CONTINGENCIES (CONTINUED)
Self-Insurance Payable (Continued)
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 $4,506,047 and $3,333,843 for the general liability claims and workers’ compensation claims, respectively, for a total of $7,839,890.

A reconciliation of changes in aggregate liabilities for claims for the last two fiscal years is as follows:
2022 2021
Beginning-Year Liability 8,313,364$ 5,137,812 $
Current-Year Claims and Changes in Estimates 2,548,295 4,232,232 Claim Payments (3,251,769) (1,056,680)
Balance at F
iscal Year End 7,609,890$ 8,313,364$
There have been no significant cha nges in insu
rance coverage from the prior year. During
the past three fiscal years, the amount of settlements has not exceeded the amount of insurance coverage.

As of July 1, 2022, the City became a member of the Public Entity Risk Management Authority (PERMA), a public entity risk pool operating as a common risk management and insurance program. See Note 14 for further details.

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 1,928,537$

1.a
Packet Pg. 116
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(89)
NOTE 13 SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT

AGENCY (CONTINUED)
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, 2022, is as follows:

Due Due in
Balance Balance Within More Than
June 30, 2021 Additions Deletions June 30, 2022 One Year One Year Tax Allocation Bonds:

Refunding Bonds,
Series 2015 10,370,000$ -$ (1,295,000)$ 9,075,000$ 1,215,000$ 7,860,000$ Unamortized Discounts 1,348,049 - (86,971) 1,261,078 - 1,261,078 Total 11,718,049$ -$ (1,381,971)$ 10,336,078$ 1,215,000$ 9,121,078$ Tax Allocat
ion 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, 2022, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
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 1,230,000 166,388 1,396,388
2028-2032 1,915,000 397,806 2,312,806
2033-2037 1,365,000 140,500 1,505,500
Total 9,075,000$ 1,947,891$ 11,022,891$
NOTE
14 SUBSEQUENT EVENTS
As of July 1, 2022, the City became a member of the Public Entity Risk Management Authority (PERMA), a public entity risk pool operating as a common risk management and insurance program for 22 California Cities, 7 special districts and 3 transit agencies.

1.a
Packet Pg. 117
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
This page is intentionally left blank.
(90)

1.a
Packet Pg. 118
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(91)

REQUIRED SUPPLEMENTARY INFORMATION

1.a
Packet Pg. 119
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY

AND RELATED RATIOS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *
(92)

Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 City's Proportion of the Net
Pension Liability 1.24853% 0.95962% 0.94376% 0.933270%
City's Proportionate Share of the
Net Pension Liability 43,817,132$ 63,933,056 $ 58,914,788 $ 54,759,875 $ City's Covered Payroll 9,590,910$ 8,620,874$ 9,579,273$ 9,299,618$ City's Proportionate Share of the Net
Pension Liability as a Percentage of
City's Covered Payroll 456.86% 741.61% 615.02% 588.84%
Plan's Fiduciary Net Position
as a Percentage of the Plan's
Total Pension Liability 79.04% 68.91% 75.26% 75.26%
Plan's Proportionate Share of Aggregate
Employer Contributions 8,828,110$ 7,334,118$ 6,142,392$ 5,726,963$ Safety
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.

From fiscal year June 30, 2021 to June 30, 2022:

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

1.a
Packet Pg. 120
Attachment: Final ACFR (3971 : FY2021-22 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
City's Proportion of the Net
Pension Liability
City's Proportionate Share of the
Net Pension Liability
City's Covered Payroll
City's Proportionate Share of the Net
Pension Liability as a Percentage of
City's Covered Payroll
Plan's Fiduciary Net Position
as a Percentage of the Plan's
Total Pension Liability
Plan's Proportionate Share of Aggregate
Employer Contributions
June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014

0.913560% 0.902780% 0.887770% 0.819020%
53,943,082$ 47,315,229 $ 36,579,955 $ 30,721,081 $ 8,523,558$ 7,954,010 $ 8,572,102 $ 7,813,817 $ 632.87% 594.86% 426.73% 393.16%

73.31% 74.06% 78.40% 80.99%
4,596,046$ 4,379,222 $ 4,428,878 $ 3,704,405 $ Safety
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.

From fiscal year June 30, 2021 to June 30, 2022:

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

1.a
Packet Pg. 121
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *

(94)

Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Contractually Required Contribution
(Actuarially Determined) 6,665,476$ 5,958,971 $ 5,255,476 $ 4,437,898 $ Contributions in Relation to
the Contractually Required
Contributions (6,665,476) (5,958,971) (5,255,476) (4,437,898) Contribution Deficiency (Excess) -$ - $ - $ - $ City's Covered Payroll 9,989,252 $ 9,590,910 $ 8,620,874 $ 9,579,273 $ Contributions as a Percentage
of Covered Payroll 66.73% 62.13% 60.96% 46.33%
Notes to Schedule:

Valuation Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method Entr y AgeE n t r y AgeE n t r y AgeE n t r y Age Amortization Method (1) (1) (1) (1)
Asset Valuation Method Market Value Market Value Market Value Fair Value Inflation 2.625% 2.625% 2.625% 2.75%
Salary Increases (2) (2) (2) (2)
Investment Rate of Return 7.25% (3) 7.25% (3) 7.25% (3) 7.375% (3) Retirement Age (4) (4) (4) (4)
Mortality (5) (5) (5) (5)
Safety

(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 eight years are shown.

1.a
Packet Pg. 122
Attachment: Final ACFR (3971 : FY2021-22 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 Contractuall
y Required
Contributions
Contribution Deficiency (Excess)
City's 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
Salar
y Increases
Investment Rate of Return
Retirement A
ge
Mortality
June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 3,908,198$ 3,319,478 $ 3,081,204 $ 2,451,024 $ (3,908,198) (3,319,478) (3,081,204) (2,451,024) -$ - $ - $ - $ 9,299,618$ 8,523,558 $ 7,954,010 $ 8,572,102 $

42.03% 38.94% 38.74% 28.59%
6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry AgeE n t r y AgeE n t r y AgeE n t r y Age
(1) (1) (1) (1)
Fair Value Fair Value Fair Value 15 Year
Smoothed
Market Method

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

7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)
(4) (4) (4) (4)
(5) (5) (5) (5)
Safety

(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 eight years are shown.

1.a
Packet Pg. 123
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN NET PENSION LIABILITY
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *

(96)

Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Measurement Period June 30, 2021 J une 30, 2020 June 30, 2019 June 30, 2018 Total Pension Liability:

Service Cost 2,386,656 $ 2,461,858 $ 2,493,798 $ 2,509,394 $ Interest on Total Pension Liability 11,314,393 11,011,405 10,683,159 10,127,309 Differences Between Expected and
Actual Experience (843,481) (838,202) 2,325,332 1,242,908 Changes in Assumptions - - - (759,649) Changes in Benefits - - - - Benefit Payments, Including Refunds of
Employee Contributions (8,615,641) (8,093,554) (7,370,298) (6,989,911) Net Change in Total Pension Liability 4,241,927 4,541,507 8,131,991 6,130,051 Total Pension Liability - Beginning of Year 162,201,227 157,659,720 149,527,729 143,397,678 Total Pension Liability - End of Year (a) 166,443,154$ 162,201,227 $ 157,659,720 $ 149,527,729 $ Plan Fiduciary Net Position:

Net Plan to Plan Resource Movement - $ - $ - $ (249)$ Miscellaneous Expenses - - 249 (302,584) Contributions - Employer 4,590,979 4,112,145 3,464,809 2,954,354 Contributions - Employee 992,202 1,020,294 1,090,119 1,076,405 Net Investment Income 25,531,661 5,522,127 6,981,787 8,526,707 Benefit Payments (8,615,641) (8,093,554) (7,370,298) (6,989,911) Administrative Expense (113,731) (157,114) (76,613) (159,337) Net Change in Plan Fiduciary Net Position 22,385,470 2,403,898 4,090,053 5,105,385 Plan Fiduciary Net Position - Beginning of Year 113,851,434 111,447,536 107,357,483 102,252,098 Plan Fiduciary Net Position - End of Year (b) 136,236,904$ 113,851,434 $ 111,447,536 $ 107,357,483 $ Net Pension Liability - Ending (a)-(b) 30,206,250 $ 48,349,793 $ 46,212,184 $ 42,170,246 $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 81.85% 70.19% 70.69% 71.80%
Covered Payroll 13,598,995 $ 12,886,815 $ 13,638,600 $ 13,726,400 $ Net Pension Liability as Percentage of
Covered Payroll 222.12% 375.19% 338.83% 307.22%
Miscellaneous
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.

From fiscal year June 30, 2021 to June 30, 2022:

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

1.a
Packet Pg. 124
Attachment: Final ACFR (3971 : FY2021-22 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
Chan
ges 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 Ex
penses
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Pa
yments
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
June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 2,441,303$ 2,173,034$ 2,030,905$ 1,819,120$ 9,698,932 9,339,587 8,828,015 8,469,591 19,319 1,753,280 (144,763) -
8,163
,980 - (2,174,145) -
-
-
- -
(6,342,617) (6,190,901) (5,801,181) (5,408,188) 13,980,917 7,075,000 2,738,831 4,880,523 129,416,761 122,341,761 119,602,930 114,722,407 143,397,678$ 129,416,761$ 122,341,761$ 119,602,930$ -$
-$
-$ -$
-
-
-
-
2,806
,234 2,601,938 2,266,067 1,634,990 1,079,751 1,054,638 1,098,948 926,763 10,436,125 507,989 2,151,777 14,562,640 (6,342,617) (6,190,901) (5,801,181) (5,408,188) (139,393) (58,810) (131,597) -
7,840
,100 (2,085,146) (415,986) 11,716,205 94,411,
998 96,497,144 96,913,130 85,196,925 102,252,098$ 94,411,998$ 96,497,144$ 96,913,130$ 41,145,580$ 35,004,763$ 25,844,617$ 22,689,800$

71.31% 72.95% 78.88% 81.03%
14,021,318$ 12,803,630$ 13,135,088$ 11,068,462$ 293.45% 273.40% 196.76% 205.00%
Miscellaneous
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.

From fiscal year June 30, 2021 to June 30, 2022:

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

1.a
Packet Pg. 125
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *

(98)

Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Contractually Required Contribution
(Contractually Required) 5,023,161$ 4,593,240 $ 4,114,285 $ 3,452,712 $ Contributions in Relation to
the Contractually Required
Contributions (5,023,161) (4,593,240) (4,114,285) (3,452,712) Contribution Deficiency (Excess) -$ - $ - $ - $ Covered Payroll 13,808,165 $ 13,598,995 $ 12,886,815 $ 13,638,600 $ Contributions as a Percentage
of Covered Payroll 36.38% 33.78% 31.93% 25.32%
Notes to Schedule:

Valuation Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method Entr y AgeE n t r y AgeE n t r y AgeE n t r y Age Amortization Method (1) (1) (1) (1)
Asset Valuation Method Market Value Market Value Market Value Fair Value Inflation 2.625% 2.625% 2.625% 2.75%
Salary Increases (2) (2) (2) (2)
Investment Rate of Return 7.25% (3) 7.25% (3) 7.25% (3) 7.375% (3) Retirement Age (4) (4) (4) (4)
Mortality (5) (5) (5) (5)
Miscellaneous

(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 eight years are shown.

1.a
Packet Pg. 126
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS (CONTINUED)
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *

(99)

Fiscal Year Ended
Contractually Required Contribution
(Contractually Required)
Contributions in Relation to
the Contractuall
y Required
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
Salar
y Increases
Investment Rate of Return
Retirement A
ge
Mortality
June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 2,941,634$ 2,734,651 $ 2,504,134 $ 2,258,495 $ (2,941,634) (2,734,651) (2,504,134) (2,258,495) -$ - $ - $ - $ 13,726,400$ 14,021,318 $ 12,803,630 $ 13,135,088 $

21.43% 19.50% 19.56% 17.19%
6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry AgeE n t r y AgeE n t r y AgeE n t r y Age
(1) (1) (1) (1)
Fair Value Fair Value Fair Value 15 Year
Smoothed
Market Method

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

7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)
(4) (4) (4) (4)
(5) (5) (5) (5)
Miscellaneous

(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 eight years are shown.

1.a
Packet Pg. 127
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS

OTHER POSTEMPLOYMENT BENEFITS PLAN
LAST TEN FISCAL YEARS *

(100)

Fiscal Year End June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Measurement Date June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total OPEB Liability:

Service Cost 2,328,012 $ 1,921,819 $ 1,233,655 $ 1,197,722 $ Interest on Total OPEB Liability 1,134,611 1,288,268 1,097,960 1,051,619 Differences Between Expected and Actual
Experience - - 6,245,865 - Chan
ges in Assumptions 6,042,181 3,874,473 1,968,572 (346,225) Changes in Benefit Terms (2,106,047) - - - Plan Experience 41,105 - - - Benefit Payments, Including Refunds of
Member Contributions (1,949,639) (1,825,760) (1,588,495) (1,408,943) Net Change in Total OPEB Liability 5,490,223 5,258,800 8,957,557 494,173 Total OPEB Liability - Beginning of Year 45,147,243 39,888,443 30,930,886 30,436,713 Total OPEB Liability - Ending (a)-(b) 50,637,466$ 45,147,243 $ 39,888,443 $ 30,930,886 $ Covered - Employee Payroll 23,797,417 $ 22,391,564 $ 23,216,582 $ 23,026,018 $ Total OPEB Liability as Percentage of
Covered - Employee Payroll 212.79% 201.63% 171.81% 134.33%

Notes to Schedule:

Benefit Changes:

Change in maximum benefit amount to be paid by the City based on employee group and hire date.

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%
From fiscal year June 30 2021 to June 30, 2022:

The discount rate was reduced from 2.44% to 2.09%
* Fiscal year 2018 was the first year of implementation and therefore only five years are shown.

1.a
Packet Pg. 128
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS

OTHER POSTEMPLOYMENT BENEFITS PLAN
LAST TEN FISCAL YEARS *
(101)

Fiscal Year End
Measurement Date
Total OPEB Liability:

Service Cost
Interest on Total OPEB Liability
Differences Between Expected and Actual
Experience
Changes in Assumptions
Changes in Benefit Terms
Plan Experience
Benefit Payments, Including Refunds of
Member Contributions
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning of Year
Total OPEB Liability - Ending (a)-(b)
Covered - Employee Payroll
Total OPEB Liability as Percentage of
Covered - Employee Payroll
June 30, 2018
June 30, 2017
1,308,041$
916,545
-
(1,977,837)
-
-
(1,322,951)
(1,076,202)
31,512,915
30,436,713$
22,544,876$
135.01%
Notes to Schedule:

Benefit Changes:

Change in maximum benefit amount to be paid by the City based on employee group and hire date.

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%
From fiscal year June 30 2021 to June 30, 2022:

The discount rate was reduced from 2.44% to 2.09%
* F
iscal year 2018 was the first year of implementation and therefore only five years are shown.

1.a
Packet Pg. 129
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(102)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 130
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(103)

SUPPLEMENTARY INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

1.a
Packet Pg. 131
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

OTHER NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022

(104)

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 fr om 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.

1.a
Packet Pg. 132
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

OTHER NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022

(105)

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 conti nuation 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 fo r 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.

1.a
Packet Pg. 133
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

(106)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 134
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022

(107)

Special Revenue Funds
Community
Community Development State
Child Library Block Traffic Asset
Gas Tax Care Grant Grant Relief Seizure
ASSETS
Cash and Investments - $ 175,834$ 25,577 $ - $ 1,511,911$ 366,820 $ Receivables:

Accounts 1,113 1,532 - 282,798 - - Taxes - - - - 97,385 - Accrued Interest - 294 - - 2,094 623 Due from Other Governments 226,669 65,346 - 75,116 - - Due from Other Funds - - 22,999 - - - Land Held for Resale - - - - - - Restricted Assets:

Cash and Investments - - - - - 63,395 Cash and Investments with
Fiscal Agents - - - - - - Total Assets 227,782 $ 243,006 $ 48,576 $ 357,914 $ 1,611,390 $ 430,838 $

LIABILITIES
Accounts Payable 18,675 $ 21,178 $ 6,515 $ - $ 21,874$ - $ Unearned Revenues - 209,392 - - - - Due to Other Funds 125,549 - - 358,605 - - Total Liabilities 144,224 230,570 6,515 358,605 21,874 -

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues 1,113 46,296 - 353,394 - - Total Deferred Inflows
of Resources 1,113 46,296 - 353,394 - -

FUND BALANCES (DEFICITS)
Restricted:

Public Safety - - - - - 430,838 Capital Projects 82,445 - - - 1,589,516 - Debt Service - - - - - - Education - - 42,061 - - - Affordable Housing - - - - - - Air Quality Projects - - - - - - Unassigned - (33,860) - (354,085) - - Total Fund Balances (Deficits) 82,445 (33,860) 42,061 (354,085) 1,589,516 430,838 Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances 227,782 $ 243,006 $ 48,576 $ 357,914 $ 1,611,390 $ 430,838 $

1.a
Packet Pg. 135
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022

(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
Host
Air Drug/Gang City Storm Local New
Quality Intervention Fees Water Transportation Facilities 630,518$ 14,662 $ 1,985,518$ 1,390,596 $ 3,466,317 $ 376,003 $ - - - - - - - - - 10,443 - - 997 22 2,802 2,061 4,875 544 50,040 - 191,718 - 347,071 - - - - - - - - - - - - - - - - - - - - - - - - - 681,555$ 14,684 $ 2,180,038$ 1,403,100 $ 3,818,263 $ 376,547 $ -$ - $ - $ 27,507$ 64,373 $ - $ - - - - - - - - - - - - - - - 27,507 64,373 - 17,826 - - - 121,853 - 17,826 - - - 121,853 - - 14,684 - - - - - - 2,180,038 1,375,593 3,632,037 376,547 - - - - - - - - - - - - - - - - - - 663,729 - - - - - - - - - - - 663,729 14,684 2,180,038 1,375,593 3,632,037 376,547 681,555$ 14,684 $ 2,180,038$ 1,403,100 $ 3,818,263 $ 376,547 $

1.a
Packet Pg. 136
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022

(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
Civic Center Fire Facility Police Facility
Development Development Development Miscellaneous Housing Fee Fee Fee ViTep Grants Authority
122,968$ 301,452 $ 389,458 $ 248,835 $ 187,156 $ 826,521 $ - - - - 752,412 32,272 - - - - - - 178 436 563 349 1,256 1,292 - - - - 583,690 - - - - - - - - - - - - 84,131 - - - - - - - - - - - - 123,146$ 301,888 $ 390,021 $ 249,184 $ 1,524,514 $ 944,216 $ -$ - $ - $ - $ 114,100$ - $ - - - - 865,128 - - - - - - - - - - - 979,228 - - - - - 1,184,304 - - - - - 1,184,304 - - - - 249,184 - - 123,146 301,888 390,021 - - - - - - - - - - - - - - - - - - - - 944,216 - - - - - - - - - - (639,018) - 123,146 301,888 390,021 249,184 (639,018) 944,216 123,146$ 301,888 $ 390,021 $ 249,184 $ 1,524,514 $ 944,216 $ Special Revenue Funds

1.a
Packet Pg. 137
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022

(110)

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
110,280$ 72,708 $ 737,070 $ 12,981,221$ 872,909 $ 26,794,334$ - - - - - 1,070,127 - - - - - 107,828 160 - 1,010 18,793 1,263 39,612 - - 6,702 - - 1,546,352 - - - - - 22,999 - - - - - 84,131 - - - - - 63,395 915,085 1,759,635 - - - 2,674,720 1,025,525$ 1,832,343 $ 744,782 $ 13,000,014$ 874,172 $ 32,403,498$ -$ - $ 40,115$ 52,491 $ 3,402 $ 370,230 $ - - - - - 1,074,520 - - - - - 484,154
- - 40,115 52,491 3,402 1,928,904 - - 6,702 - - 1,731,488 - - 6,702 - - 1,731,488 - - - - - 694,706 - - 697,965 12,947,523 870,770 24,567,489 1,025,525 1,832,343 - - - 2,857,868 - - - - - 42,061 - - - - - 944,216 - - - - - 663,729 - - - - - (1,026,963) 1,025,525 1,832,343 697,965 12,947,523 870,770 28,743,106 1,025,525$ 1,832,343 $ 744,782 $ 13,000,014$ 874,172 $ 32,403,498$

1.a
Packet Pg. 138
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022

(111)

Special Revenue Funds
Community
Community Development State
Child Library Block Traffic Asset
Gas Tax Care Grant Grant Relief Seizure

REVENUES
Taxes - $ - $ - $ - $ - $ - $ Intergovernmental 1,276,690 907,123 60,412 223,278 1,084,875 - Charges for Services - 35,805 - - - - Investment Income (Loss) - (2,251) 3 - (14,812) (4,246) Contributions - - - - - - Fines and Forfeitures - - - - - 1,459 Miscellaneous 2,924 41,401 - - - - Total Revenues 1,279,614 982,078 60,415 223,278 1,070,063 (2,787)

EXPENDITURES
Current:

General Government - - - - - - Public Safety - - - - - 1,141 Community Services - 954,329 74,880 - - - Public Works 1,148,403 - - - - - Capital Outlay - - - 142,740 135,889 - Debt Service:

Principal Retirement - Lease - 1,165 - - - - Interest and Fiscal Charges - Lease - 4 - - - - Principal Retirement - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 1,148,403 955,498 74,880 142,740 135,889 1,141 Excess of Revenues Over
(Under) Expenditures 131,211 26,580 (14,465) 80,538 934,174 (3,928)

OTHER FINANCING SOURCES
(USES)
Transfers In - 38,090 22,999 - - - Transfers Out (36,643) (19,889) - (169,160) - - Total Other Financing
Sources (Uses) (36,643) 18,201 22,999 (169,160) - -

NET CHANGE IN FUND
BALANCES 94,568 44,781 8,534 (88,622) 934,174 (3,928) Fund Balances (Deficits) - Beginning
of Year (12,123) (78,641) 33,527 (265,463) 655,342 434,766

FUND BALANCES (DEFICITS) -
END OF YEAR 82,445$ (33,860) $ 42,061 $ (354,085) $ 1,589,516 $ 430,838 $

1.a
Packet Pg. 139
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022

(112)

REVENUES
Taxes
Intergovernmental
Charges for Services
Investment Income (Loss)
Contributions
Fines and Forfeitures
Miscellaneous
Total Revenues

EXPENDITURES
Current:

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

Principal Retirement - Lease
Interest and Fiscal Charges - Lease
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 -$ - $ - $ 638,958$ - $ - $ 84,131 257 812,564 - 1,408,277 - - - - - - 3,952 (6,674) (148) (19,183) (14,330) (33,932) (3,564) - - - - - - - - - - - - - - - - - - 77,457 109 793,381 624,628 1,374,345 388 - - - - - - - - - - - - - - - - - - 158,703 - - 526,705 - - - - 495,871 - 178,401 - - - - - - - - - - - - - - - - - - - - - - - - - 158,703 - 495,871 526,705 178,401 - (81,246) 109 297,510 97,923 1,195,944 388 - - - - - - - - - (10,246) (14,889) - - - - (10,246) (14,889) - (81,246) 109 297,510 87,677 1,181,055 388 744,975 14,575 1,882,528 1,287,916 2,450,982 376,159 663,729$ 14,684 $ 2,180,038$ 1,375,593 $ 3,632,037 $ 376,547 $

1.a
Packet Pg. 140
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022

(113)

REVENUES
Taxes
Intergovernmental
Charges for Services
Investment Income (Loss)
Contributions
Fines and Forfeitures
Miscellaneous
Total Revenues

EXPENDITURES
Current:

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

Principal Retirement - Lease
Interest and Fiscal Charges - Lease
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
Civic Center Fire Facility Police Facility
Development Development Development Miscellaneous Housing Fee Fee Fee ViTep Grants Authority
-$ - $ - $ - $ - $ - $ - - - - 2,650,491 - 1,138 6,374 8,305 48,031 - - (1,164) (2,901) (3,738) (2,411) (7,858) 102,940 - - - - - - - - - - - - - - - - - - (26) 3,473 4,567 45,620 2,642,633 102,940 - - - - 3,009 - - - - - 2,256,647 - - - - - - - - - - - - - - - - - 603,972 - - - - - - - - - - - - - - - - - - - - - - - - 111,749 - - - - 2,863,628 111,749 (26) 3,473 4,567 45,620 (220,995) (8,809) - - - - - - - - - - (197,022) - - - - - (197,022) - (26) 3,473 4,567 45,620 (418,017) (8,809) 123,172 298,415 385,454 203,564 (221,001) 953,025 123,146$ 301,888 $ 390,021 $ 249,184 $ (639,018) $ 944,216 $ Special Revenue Funds

1.a
Packet Pg. 141
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022

(114)

REVENUES
Taxes
Intergovernmental
Charges for Services
Investment Income (Loss)
Contributions
Fines and Forfeitures
Miscellaneous
Total Revenues

EXPENDITURES
Current:

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

Principal Retirement - Lease
Interest and Fiscal Charges - Lease
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
-$ - $ - $ - $ - $ 638,958$ - - 5,757 - - 8,513,855 - - - 111,515 - 215,120 (1,003) 352 (7,210) (121,682) (8,611) (152,423) - - 631,182 42,315 - 673,497 - - - - - 1,459 - 5,545 - 6,893 - 56,763 (1,003) 5,897 629,729 39,041 (8,611) 9,947,229

4,820 2,970 - - - 10,799 - - - - - 2,257,788 - - - - - 1,029,209 - - - - - 1,833,811 - - 228,993 241,388 12,016 2,039,270 - - - - - 1,165 - - - - - 4 535,000 1,205,000 - - - 1,740,000 366,683 858,252 - - - 1,336,684 906,503 2,066,222 228,993 241,388 12,016 10,248,730 (907,506) (2,060,325) 400,736 (202,347) (20,627) (301,501) 901,683 2,162,039 213,716 - - 3,338,527 - - - (5,670) - (453,519) 901,683 2,162,039 213,716 (5,670) - 2,885,008 (5,823) 101,714 614,452 (208,017) (20,627) 2,583,507 1,031,348 1,730,629 83,513 13,155,540 891,397 26,159,599 1,025,525$ 1,832,343 $ 697,965 $ 12,947,523$ 870,770 $ 28,743,106$

1.a
Packet Pg. 142
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(115)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR (12,123)$ (12,123)$ (12,123)$ - $

RESOURCES (INFLOWS)
Intergovernmental 1,391,606 1,391,606 1,276,690 (114,916) Miscellaneous - - 2,924 2,924 Amounts Available for
Appropriations 1,379,483 1,379,483 1,267,491 (111,992)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works 1,354,963 1,335,640 1,148,403 187,237 Transfers Out 36,643 36,643 36,643 - Total Charges to Appropriations 1,391,606 1,372,283 1,185,046 187,237

BUDGETARY FUND BALANCE - END
OF YEAR (12,123)$ 7,200 $ 82,445 $ 75,245 $

1.a
Packet Pg. 143
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(116)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING

OF YEAR
(78,641)$ (78,641)$ (78,641)$ - $

RESOURCES (INFLOWS)
Intergovernmental 880,006 936,639 907,123 (29,516) Charges for Services 56,898 56,898 35,805 (21,093) Investment Income (Loss) - - (2,251) (2,251) Miscellaneous - 125,007 41,401 (83,606) Transfers In - - 38,090 38,090 Amounts Available for
Appropriations 858,263 1,039,903 941,527 (98,376)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Community Services 923,032 1,073,033 954,329 118,704 Debt Service:

Principal Retirement - Lease - 1,165 1,165 - Interest and Fiscal Charges - Lease - 4 4 - Transfers Out 19,889 19,889 19,889 - Total Charges to Appropriations 942,921 1,094,091 975,387 118,704

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR (84,658)$ (54,188)$ (33,860)$ 20,328 $

1.a
Packet Pg. 144
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(117)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 33,527$ 33,527 $ 33,527 $ - $

RESOURCES (INFLOWS)
Intergovernmental 18,360 60,421 60,412 (9) Investment Income (Loss) - - 3 3 Transfers In 23,000 23,000 22,999 (1) Amounts Available for
Appropriations 74,887 116,948 116,941 (7)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Community Services 43,860 128,553 74,880 53,673 Total Charges to Appropriations 43,860 128,553 74,880 53,673

BUDGETARY FUND BALANCE - END
OF YEAR 31,027$ (11,605) $ 42,061 $ 53,666 $

1.a
Packet Pg. 145
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(118)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR (265,463)$ (265,463)$ (265,463)$ - $

RESOURCES (INFLOWS)
Intergovernmental 417,684 1,744,696 223,278 (1,521,418) Amounts Available for
Appropriations 152,221 1,479,233 (42,185) (1,521,418)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 355,031 940,720 142,740 797,980 Transfers Out 62,653 583,786 169,160 414,626 Total Charges to Appropriations 417,684 1,524,506 311,900 1,212,606

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR (265,463)$ (45,273) $ (354,085) $ (308,812) $

1.a
Packet Pg. 146
Attachment: Final ACFR (3971 : FY2021-22 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, 2022
(119)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 655,342$ 655,342 $ 655,342 $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,063,055 1,063,055 1,084,875 21,820 Investment Income (Loss) - - (14,812) (14,812) Amounts Available for
Appropriations 1,718,397 1,718,397 1,725,405 7,008 CHA

RGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 1,063,055 1,271,182 135,889 1,135,293 Total Charges to Appropriations 1,063,055 1,271,182 135,889 1,135,293

BUDGETARY FUND BALANCE - END
OF YEAR 655,342$ 447,215$ 1,589,516$ 1,142,301$

1.a
Packet Pg. 147
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(120)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 434,766$ 434,766 $ 434,766 $ - $

RESOURCES
(INFLOWS)
Investment Income (Loss) - - (4,246) (4,246) Fines and Forfeitures - - 1,459 1,459 Amounts Available for
Appropriations 434,766 434,766 431,979 (2,787)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Safety - 60,000 1,141 58,859

BUDGETARY FUND BALANCE - END
OF YEAR 434,766$ 374,766 $ 430,838 $ 56,072 $

1.a
Packet Pg. 148
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(121)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 744,975$ 744,975 $ 744,975 $ - $

RESOURCES
(INFLOWS)
Intergovernmental 50,000 50,000 84,131 34,131 Investment Income (Loss) 5,000 5,000 (6,674) (11,674) Amounts Available for
Appropriations 799,975 799,975 822,432 22,457

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works 55,000 340,165 158,703 181,462

BUDGETARY FUND BALANCE - END
OF YEAR 744,975$ 459,810 $ 663,729 $ 203,919 $

1.a
Packet Pg. 149
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(122)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 14,575$ 14,575 $ 14,575 $ - $

RESOURCES (INFLOWS)
Intergovernmental - - 257 257 Investment Income (Loss) - - (148) (148) Amounts Available for
Appropriations 14,575 14,575 14,684 109

BUDGETARY FUND BALANCE - END
OF YEAR 14,575$ 14,575 $ 14,684 $ 109 $

1.a
Packet Pg. 150
Attachment: Final ACFR (3971 : FY2021-22 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, 2022
(123)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 1,882,528$ 1,882,528 $ 1,882,528 $ - $

RESOURCES (INFLOWS)
Intergovernmental 650,835 680,619 812,564 131,945 Investment Income (Loss) 45,825 3,000 (19,183) (22,183) Amounts Available for
Appropriations 2,579,188 2,566,147 2,675,909 109,762

CHARGES TO APPROPRIATIONS

(OUTFLOWS)
Current:

Capital Outla
y - 672,609 495,871 176,738
Total Charges to Appropriations - 672,609 495,871 176,738

BUDGETARY FUND BALANCE - END
OF YEAR 2,579,188$ 1,893,538$ 2,180,038$ 286,500$

1.a
Packet Pg. 151
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(124)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 1,287,916$ 1,287,916 $ 1,287,916 $ - $

RESOURCES (INFLOWS)
Taxes 620,597 636,959 638,958 1,999 Investment Income (Loss) 1,000 600 (14,330) (14,930) Amounts Available for
Appropriations 1,909,513 1,925,475 1,912,544 (12,931)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works 697,466 775,465 526,705 248,760 Debt Service:

Transfers Out 10,246 10,246 10,246 - Total Char
ges to Appropriations 707,712 785,711 536,951 248,760

BUDGETARY FUND BALANCE - END
OF YEAR 1,201,801$ 1,139,764 $ 1,375,593 $ 235,829 $

1.a
Packet Pg. 152
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(125)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 2,450,982$ 2,450,982 $ 2,450,982 $ - $

RESOURCES
(INFLOWS)
Intergovernmental 884,500 1,082,380 1,408,277 325,897 Investment Income (Loss) 61,000 1,300 (33,932) (35,232) Amounts Available for
Appropriations 3,396,482 3,534,662 3,825,327 290,665

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 945,500 1,184,359 178,401 1,005,958 Transfers Out - 380,569 14,889 365,680 Total Charges to Appropriations 945,500 1,564,928 193,290 1,371,638

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR 2,450,982$ 1,969,734 $ 3,632,037 $ 1,662,303 $

1.a
Packet Pg. 153
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(126)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 376,159$ 376,159 $ 376,159 $ - $

RESOURCES (INFLOWS)
Charges for Services 164,000 213,000 3,952 (209,048) Investment Income (Loss) 1,500 400 (3,564) (3,964)

BUDGETARY FUND BALANCE - END
OF YEAR 541,659$ 589,559 $ 376,547 $ (213,012) $

1.a
Packet Pg. 154
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(127)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 123,172$ 123,172 $ 123,172 $ - $

RESOURCES
(INFLOWS)
Charges for Services - 75 1,138 1,063 Investment Income (Loss) - - (1,164) (1,164) Amounts Available for
Appropriations 123,172 123,247 123,146 (101)

BUDGETARY FUND BALANCE - END
OF YEAR 123,172$ 123,247 $ 123,146 $ (101) $

1.a
Packet Pg. 155
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(128)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 298,415$ 298,415 $ 298,415 $ - $

RESOURCES (INFLOWS)
Charges for Services - 1,500 6,374 4,874 Investment Income (Loss) - - (2,901) (2,901)

BUDGETARY FUND BALANCE - END
OF YEAR 298,415$ 299,915 $ 301,888 $ 1,973 $

1.a
Packet Pg. 156
Attachment: Final ACFR (3971 : FY2021-22 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, 2022
(129)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 385,454$ 385,454 $ 385,454 $ - $

RESOURCES (INFLOWS)
Charges for Services - 2,000 8,305 6,305
Inv
estment Income (Loss) - - (3,738) (3,738)

BUDGETARY FUND BALANCE - END
OF YEAR 385,454$ 387,454 $ 390,021 $ 2,567 $

1.a
Packet Pg. 157
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(130)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 203,564$ 203,564 $ 203,564 $ - $

RESOURCES
(INFLOWS)
Charges for Services - 17,300 48,031 30,731 Investment Income (Loss) - - (2,411) (2,411) Amounts Available for
Appropriations 203,564 220,864 249,184 28,320

BUDGETARY FUND BALANCE - END
OF YEAR 203,564$ 220,864 $ 249,184 $ 28,320 $

1.a
Packet Pg. 158
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(131)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR (221,001)$ (221,001)$ (221,001)$ - $

RESOURCES (INFLOWS)
Intergovernmental 13,000 14,392,099 2,650,491 (11,741,608) Investment Income (Loss) - - (7,858) (7,858) Amounts Available for
Appropriations (208,001) 14,171,098 2,421,632 (11,749,466)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government - 194,988 3,009 191,979 Public Safety 216,664 7,265,279 2,256,647 5,008,632 Capital Outlay - 4,434,917 603,972 3,830,945 Transfers Out - 1,875,103 197,022 1,678,081 Total Charges to Appropriations 216,664 13,770,287 3,060,650 10,709,637

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR (424,665)$ 400,811 $ (639,018) $ (1,039,829) $

1.a
Packet Pg. 159
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(132)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 953,025$ 953,025 $ 953,025 $ - $

RESOURCES (INFLOWS)
Investment Income (Loss) - - 102,940 102,940 Amounts Available for
Appropriations 953,025 953,025 1,055,965 102,940

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Debt Service:

Interest and Fiscal Charges - - 111,749 (111,749)

BUDGETARY FUND BALANCE - END
OF YEAR 953,025$ 953,025 $ 944,216 $ (8,809) $

1.a
Packet Pg. 160
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(133)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 1,031,348$ 1,031,348 $ 1,031,348 $ - $

RESOURCES
(INFLOWS)
Investment Income (Loss) 10,000 10,000 (1,003) (11,003) Transfers In 901,683 901,683 901,683 - Amounts Available for
Appropriations 1,943,031 1,943,031 1,932,028 (11,003)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government 4,850 4,850 4,820 30 Debt Service:

Principal Retirement 535,000 535,000 535,000 - Interest and Fiscal Charges 366,683 366,683 366,683 - Total Charges to Appropriations 906,533 906,533 906,503 30

BUDGETARY FUND BALANCE - END
OF YEAR 1,036,498$ 1,036,498 $ 1,025,525 $ (10,973) $

1.a
Packet Pg. 161
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(134)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 1,730,629$ 1,730,629 $ 1,730,629 $ - $

RESOURCES
(INFLOWS)
Investment Income (Loss) - 30 352 322 Miscellaneous 13,648 13,648 5,545 (8,103) Transfers In 2,153,936 2,153,936 2,162,039 8,103 Amounts Available for
Appropriations 3,898,213 3,898,243 3,898,565 322

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government 3,670 3,670 2,970 700 Debt Service:

Principal Retirement 1,205,000 1,205,000 1,205,000 - Interest and Fiscal Charges 858,252 858,252 858,252 - Total Charges to Appropriations 2,066,922 2,066,922 2,066,222 700

BUDGETARY FUND BALANCE - END
OF YEAR 1,831,291$ 1,831,321 $ 1,832,343 $ 1,022 $

1.a
Packet Pg. 162
Attachment: Final ACFR (3971 : FY2021-22 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, 2022
(135)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 83,513$ 83,513 $ 83,513 $ - $

RESOURCES (INFLOWS)
Intergovernmental - 185,207 5,757 (179,450)
Investment Income (Loss) - - (7,210) (7,210) Contributions 631,182 631,182 631,182 - Transfers In - 2,512,400
213,716 (2,298,684)
Amounts Available for
Appropriations 714,695 3,412,302 926,958 (2,485,344)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Capital Outlay 631,182 3,325,716 228,993 3,096,723

BUDGETARY FUND BALANCE - END
OF YEAR 83,513$ 86,586 $ 697,965 $ 611,379 $

1.a
Packet Pg. 163
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(136)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 13,155,540$ 13,155,540 $ 13,155,540 $ - $

RESOURCES
(INFLOWS)
Charges for Services 1,215,000 415,000 111,515 (303,485) Investment Income (Loss) 53,000 12,800 (121,682) (134,482) Contributions - - 42,315 42,315 Miscellaneous 270,000 189,000 6,893 (182,107) Amounts Available for
Appropriations 14,693,540 13,772,340 13,194,581 (577,759)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works - 7,097 - 7,097 Capital Outlay 400,000 1,849,715 241,388 1,608,327 Transfers Out - 171,256 5,670 165,586 Total Charges to Appropriations 400,000 2,028,068 247,058 1,781,010

BUDGETARY FUND BALANCE - END
OF YEAR 14,293,540$ 11,744,272 $ 12,947,523 $ 1,203,251 $

1.a
Packet Pg. 164
Attachment: Final ACFR (3971 : FY2021-22 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, 2022

(137)

Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 891,397$ 891,397 $ 891,397 $ - $

RESOURCES (INFLOWS)
Investment Income (Loss) - - (8,611) (8,611) Amounts Available for
Appropriations 891,397 891,397 882,786 (8,611)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay - 143,177 12,016 131,161 Total Charges to Appropriations - 143,177 12,016 131,161

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR 891,397$ 748,220 $ 870,770 $ 122,550 $

1.a
Packet Pg. 165
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

INTERNAL SERVICE FUNDS
JUNE 30, 2022

(138)

Internal Service Funds. Finance and account for goods and services provided by one City department to other City departments, or to other governm ents, 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.

1.a
Packet Pg. 166
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2022

(139)

Governmental Activities - Internal Service Funds
Facility and
Equipment Information Automotive
Maintenance Services Insurance Shop Total
ASSETS
Current Assets:

Cash and Investments 2,391,668 $ 1,804,028 $ 6,915,429 $ 2,383,080 $ 13,494,205 $ Receivables:

Accounts - - - - - Accrued Interest 3,479 2,574 8,701 3,457 18,211 Restricted Cash and Investments - - 107,081 - 107,081 Total Current Assets 2,395,147 1,806,602 7,031,211 2,386,537 13,619,497 Capital Assets:

Capital Assets, Not Being Depreciated - - - 113,957 113,957 Capital Assets, Net of
Accumulated Depreciation 985,271 305,580 - 250,554 1,541,405 Net Capital Assets 985,271 305,580 - 364,511 1,655,362 Total Assets 3,380,418 2,112,182 7,031,211 2,751,048 15,274,859

LIABILITIES
Current Liabilities:

Accounts Pa
yable 112,091 29,431 485,093 13,657 640,272 Accrued Compensated Absences 11,975 25,733 - 17,496 55,204 Accrued Claims and Judgments - - 2,494,860 - 2,494,860 Total Current Liabilities 124,066 55,164 2,979,953 31,153 3,190,336 Noncurrent Liabilities:

Accrued Compensated Absences 7,677 7,280 - 673 15,630 Accrued Claims and Judgments - - 5,115,030 - 5,115,030 Total Noncurrent Liabilities 7,677 7,280 5,115,030 673 5,130,660 Total Liabilities 131,743 62,444 8,094,983 31,826 8,320,996

NET POSITION
Net Investment In Capital Assets 894,724 305,580 - 250,554 1,450,858 Unrestricted 2,353,951 1,744,158 (1,063,772) 2,468,668 5,503,005 Total Net Position 3,248,675 $ 2,049,738 $ (1,063,772) $ 2,719,222 $ 6,953,863 $

1.a
Packet Pg. 167
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022

(140)

Governmental Activities - Internal Service Funds
Facility and
Equipment Information Automotive
Maintenance Services Insurance Shop Total

OPERATING REVENUES
Sales and Service Charges 837,949 $ 898,893 $ 5,791,565 $ 740,337 $ 8,268,744 $ Miscellaneous 93 - - - 93 Total Operating Revenues 838,042 898,893 5,791,565 740,337 8,268,837

OPERATING EXPENSES
Salaries and Benefits 425,826 411,181 245,330 251,448 1,333,785 Maintenance and Operations 351,100 254,991 1,778,316 205,789 2,590,196 Contractual Services 34,416 32,738 203,442 - 270,596 Claims and Benefits - - 3,038,606 - 3,038,606 Depreciation Expense 75,062 49,747 - 35,256 160,065 Total Operating Expenses 886,404 748,657 5,265,694 492,493 7,393,248 OPERATING INCOME (LOSS) (48,362) 150,236 525,871 247,844 875,589

NONOPERATING EXPENSE
Net Investment Income (Loss) (23,461) (17,583) (59,652) (23,627) (124,323) Total Nonoperating Expense (23,461) (17,583) (59,652) (23,627) (124,323) INCOME (LOSS) BEFORE TRANSFERS (71,823) 132,653 466,219 224,217 751,266 TRANSFERS OUT (14,344) (20,491) (11,330) (14,826) (60,991) CHANGE IN NET POSITION (86,167) 112,162 454,889 209,391 690,275 Net Position - Beginning of Year 3,334,842 1,937,576 (1,518,661) 2,509,831 6,263,588 NET POSITION - END OF YEAR 3,248,675$ 2,049,738 $ (1,063,772) $ 2,719,222 $ 6,953,863 $

1.a
Packet Pg. 168
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022

(141)

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 838,042 $ 901,342 $ 5,791,565 $ 740,337 $ 8,271,286 $ Cash Paid to Suppliers for Goods and Services (307,082) (303,813) (5,455,986) (224,102) (6,290,983) Cash Paid to Employees for Services (426,198) (415,696) (245,330) (256,302) (1,343,526) Net Cash Provided (Used) by
Operating Activities 104,762 181,833 90,249 259,933 636,777

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Paid to Other Funds (14,344) (20,491) (11,330) (14,826) (60,991) Net Cash Used by Noncapital
Financing Activities (14,344) (20,491) (11,330) (14,826) (60,991)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (560,921) - - (113,958) (674,879) Net Cash Used by Capital and
Related Financing Activities (560,921) - - (113,958) (674,879)

CASH FLOWS FROM INVESTING ACTIVITIES
Cash Effect on Net Decrease in Fair Value (32,710) (24,191) (81,786) (32,489) (171,176) Interest Received 7,567 5,045 16,267 6,814 35,693 Net Cash Provided by
Investing Activities (25,143) (19,146) (65,519) (25,675) (135,483)

NET CHANGE IN CASH AND CASH
EQUIVALENTS (495,646) 142,196 13,400 105,474 (234,576) Cash and Cash Equivalents - Beginning of Year 2,887,314 1,661,832 7,009,110 2,277,606 13,835,862

CASH AND CASH EQUIVALENTS -
END OF YEAR 2,391,668$ 1,804,028 $ 7,022,510 $ 2,383,080 $ 13,601,286 $

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

BY OPERATING ACTIVITIES
Operating Income (Loss) (48,362) $ 150,236 $ 525,871 $ 247,844 $ 875,589 $ Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation Expense 75,062 49,747 - 35,256 160,065 Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable - 2,449 - - 2,449 (Increase) Decrease in Prepaid Assets 1,350 - - - 1,350 Increase (Decrease) in Accounts Payable 77,084 (16,084) 267,852 (18,313) 310,539 Increase (Decrease) in Compensated Absences (372) (4,515) - (4,854) (9,741) Increase (Decrease) in Claims and Judgments - - (703,474) - (703,474) Net Cash Provided (Used) by
Operating Activities 104,762 $ 181,833 $ 90,249 $ 259,933 $ 636,777 $

1.a
Packet Pg. 169
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

CUSTODIAL FUNDS
JUNE 30, 2022

(142)

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 custodial 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.

1.a
Packet Pg. 170
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2022

(143)

Assessment
Districts Evidence
Fund Fund Total
ASSETS
Cash and Investments 172,732 $ 256,739 $ 429,471 $ Receivables:

Taxes 5,903 - 5,903 Accrued Interest 289 371 660 Prepaid Expense 15,783 - 15,783 Total Assets 194,707 257,110 451,817

LIABILITIES
Accounts Payable 11,263 - 11,263 Due to Other Governments 37,763 - 37,763 Total Liabilities 49,026 - 49,026

NET POSITION
Held for Other Individuals and Organizations 145,681 257,110 402,791 Total Net Position 145,681 $ 257,110 $ 402,791 $

1.a
Packet Pg. 171
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2022

(144)

Assessment
Districts Evidence
Fund Fund Total

ADDITIONS
Taxes 532,468 $ - $ 532,468$ Evidence Deposits - 40,420 40,420 Interest and Change in Fair Value of Investments - (2,784) (2,784) Total Additions 532,468 37,636 570,104

DEDUCTIONS
Administrative Expenses 180,036 - 180,036 Professional Services 178,184 - 178,184 Utilities 61,490 - 61,490
Principal Payment 25,093 - 25,093 Interest Expense 8,307 - 8,307
Capital Outlay 631,182 - 631,182 Total Deductions 1,084,292 - 1,084,292 CHANGE IN NET POSITION (551,824) 37,636 (514,188) Net Position - Beginning of Year, As Restated 697,505 219,474 916,979 NET POSITION - END OF YEAR 145,681$ 257,110 $ 402,791 $

1.a
Packet Pg. 172
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2022
(145)

Private-Purpose T
rust Funds. Are used to account for assets and related liabilities for the Cemetery Fund and former Redevelopment Agency.

Cemetery 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.

1.a
Packet Pg. 173
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2022

(146)

Successor
Cemetery Agency of the
Fund Former RDA Total
ASSETS
Cash and Investments 946,508 $ 1,928,537 $ 2,875,045 $ Receivables:

Accrued Interest 1,359 2,788 4,147 Restricted Assets:

Cash and Investments 336,407 - 336,407 Total Assets 1,284,274 1,931,325 3,215,599

LIABILITIES
Accrued Interest - 177,244 177,244 Deposits Payable 230,799 - 230,799 Long-Term Liabilities:

Due in One Year - 1,215,000 1,215,000 Due in More than One Year - 9,121,078 9,121,078 Total Liabilities 230,799 10,513,322 10,744,121

NET POSITION
Held for Other Individuals and Organizations 1,053,475 (8,581,997) (7,528,522) Total Net Position 1,053,475 $ (8,581,997) $ (7,528,522) $

1.a
Packet Pg. 174
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL PRIVATE-PURPOSE TRUST FUNDS
YEAR ENDED JUNE 30, 2022

(147)

Successor
Cemetery Agency of the
Fund Former RD A Total

ADDITIONS
Contributions 27,340 $ - $ 27,340$ Taxes - 1,645,815 1,645,815 Interest and Change in Fair Value of Investments (9,175) - (9,175) Total Additions 18,165 1,645,815 1,663,980

DEDUCTIONS
Administrative Expenses - 5,728 5,728 Interest Expense - 363,437 363,437 Total Deductions - 369,165 369,165 CHANGE IN NET POSITION 18,165 1,276,650 1,294,815 Net Position - Beginning of Year 1,035,310 (9,858,647) (8,823,337) NET POSITION - END OF YEAR 1,053,475$ (8,581,997) $ (7,528,522) $

1.a
Packet Pg. 175
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(148)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 176
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
(149)

STATISTICAL SECTION
(UNAUDITED)

1.a
Packet Pg. 177
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2022
(150)

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 153 – 158
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 159
– 165
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 166
– 169
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 170
– 171
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 172
– 174
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.

1.a
Packet Pg. 178
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

(151)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 179
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(152)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities
Net Investment in capital assets 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$ 70,778,736$ Restricted 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 30,596,051 Unrestricted (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) (85,682,326) Total governmental activities net position 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$ 15,692,461$ Business-type activities
Net Investment in capital assets 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$ 72,029,871$ Restricted 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 3,373,481 Unrestricted 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 68,030,129 Total business-type activities net position 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$ 143,433,481$ Primary government
Net Investment in capital assets 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 $ 142,808,607 $ Restricted 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 33,969,532 Unrestricted 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) (17,652,197) Total primary government net position 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$ 159,125,942$ 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

1.a
Packet Pg. 180
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(153)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Expenses
Governmental activities:

General government 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$ (329,592)$ Community Services 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 7,766,888 Public Works 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 6,696,575 Public Safety 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 40,062,962 Interest on long-term debt 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 1,604,186 Total governmental activities expenses 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 55,801,019 Business-type activities:

Electric 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 53,748,647 Water 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 8,836,901 Wastewater 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 9,933,047 Total business-type activities expenses 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 72,518,595 Total primary government expenses 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$ 128,319,614$ Program Revenues
Governmental activities:

Charges for services 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$ 8,269,683$ Operating contributions and grants 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 6,833,007 Capital contributions and grants 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 4,156,484 Total governmental activities program revenues 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 19,259,174 Business-type activities:

Charges for services:

Electric 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 63,122,470 Water 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 13,528,013 Wastewate
r 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 9,396,533 Operating grants and contributions 121,266 - - - - - - - - - Total business-type activities program revenues 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 86,047,016 Total primary government program revenues 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$ 105,306,190$ Fiscal Year

1.a
Packet Pg. 181
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(154)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net (Expense)/Revenue
Governmental activities (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)$ (36,541,845)$ Business-type activities 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 13,528,421 Total primary government net expense (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)$ (23,013,424)$ General Revenues and Other Changes in Net Position
Governmental activities:

Taxes
Property taxes 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 $ 13,347,412 $ Sales taxes 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 14,143,702 Other taxes 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 3,907,479 Motor vehicle in lieu 49,477 - - - 23,900 28,361 25,788 43,048 39,692 62,612 Use of money and propert
y 7,357,507 1,964,313 1,953,756 2,119,057 1,934,110 1,930,035 3,121,914 3,115,824 1,728,740 894,619 Other 3,156,215 227,926 470,125 463,315 643,118 462,857 315,652 513,297 914,307 295,235 Transfers 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 11,061,215 Extraordinary gain (loss) (3,403,862) - 4,991,938
- 575,630
- - - - -
Total governmental activities 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 43,712,274 Business-type activities:

Use of money and property 162,807 198,891 248,948 335,727 425,594 740,256 2,261,794 2,119,913 104,236 (670,481) Other 1,977,065 - 4,000
- 123,233
76,418 2,500
2,500
- -
Transfers (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) (11,061,215) Special Item (4,991,938) - - -
Total business-type activities (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) (11,731,696) Total primary government 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$ 31,980,578$ Change in Net Position
Governmental activities 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 7,170,429 Business-type activities 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 1,796,725 Total primary government 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$ 8,967,154$ 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

1.a
Packet Pg. 182
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

(155)

THIS PAGE INTENTIONALLY LEFT BLANK

1.a
Packet Pg. 183
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(156)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable 169,526$ 180,275$ 176,275$ 174,830$ 188,203$ 177,457$ 168,716$ 272,863$ 198,001$ 206,628$ Restricted - - - - - - - - - -
Committed 300,000 300,000 650,000 250,000 10,000 9,626,244 14,708,973 19,454,429 28,913,975 29,902,238 Unassigned 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 12,162,544 Total general fund 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$ 42,271,410$ All Other Governmental Funds
Nonspendable 630,486$ 6,060$ 4,441$ -$ -$
-$
-$
-$
-$
-$
Restricted:

Reported in:

Special revenue funds 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 2,344,712 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 24,567,489 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 2,857,868 Unassigned (4,056,945) (225,127) (18,741) (887,620) (158,625) (33,768) (680,426) (519,148) (577,288) (1,086,476) Total all other governmental funds 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$ 28,683,593$ Fiscal Year

1.a
Packet Pg. 184
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(157)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Taxes (see Schedule 6) 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 $ 32,037,551 $ Licenses and permits 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 2,090,893 Intergovernmental 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 11,057,705 Charges for services 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 2,942,440 Use of money and property 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 1,023,529 Fines and fortfeitures 381,562 327,968 326,266 257,167 324,052 293,338 668,746 528,895 355,974 578,763 Contributions 50,000 - 100,000 50,000 50,000 25,000 75,000 - - 673,497 Miscellaneous 3,219,187 736,292 426,201 344,447 1,400,485 584,222 3,587,943 1,189,027 2,264,629 1,050,118 Total revenues 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 51,454,496 Expenditures
General government 7,430,375 5,341,985 1,657,504 1,620,270 1,734,529 321,900 (217,498) 991,683 1,959,697 1,344,653 Community services 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 7,745,898 Public works 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 4,577,073 Public safety 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 36,521,459 Capital outlay 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 2,039,693 Debt service
Principal retirement 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 1,891,330 Interest and fiscal charges 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 1,351,728 Total expenditures 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 55,471,834 Excess (Deficiency) of revenues
over (under) expenditures (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) (4,017,338) Other Financing Sources (Uses)
Capital Leases - - - - - - 637,877 - - - Transfers in 19,139,851 14,255,862 - 13,354,411 17,356,134 17,061,464 15,155,093 15,519,532 16,155,531 13,984,689 Transfers out (11,378,220) (5,885,038) - (5,232,594) (4,396,281) (5,473,740) (4,852,760) (2,621,770) (3,888,112) (2,862,483) Proceeds from sale of capital assets - - - 220,043 953,001 - - - - - Total other financing
sources (uses) 7,761,631 8,370,824 - 8,341,860 13,912,854 11,587,724 10,940,210 12,897,762 12,267,419 11,122,206 Extraordinary loss on dissolution of
redevelopment agency (3,403,862) - - - - - - - - - Net change in
fund balances 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 $ 7,104,868 $ Debt service as a percentage
of noncapital expenditures 11.9% 12.2% 11. 1% 10.1% 9.8% 11.4% 8.6% 6.8% 6.5% 6.3% Fiscal Year

1.a
Packet Pg. 185
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
(158)
Estimated
Total Taxable Total Actual
Fiscal Residential Commercial Industrial Other Assessed Tax Taxable Year Propert y Property Property Property Value Rate Value 2013 1,500,202$ 386,794$ 313,725$ 481,744$ 2,682,466$ 2$ 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 2022 2,626,441 550,345 798,984 697,463 4,673,233 1.4833 4,501,962 *Source: San Bernardino County Assessor 2021/22 Combined Tax Rolls. HdL, Coren & Cone

1.a
Packet Pg. 186
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

PROPERTY TAX RATES

ALL OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
(RATE PER $1,000 OF ASSESSED VALUE)

(159)

San Bernardino San Bernardino Cit y's Share
Fiscal Basic Colton Unified Rialto Unified Communit y Unified School San Bernardino Total D&O of 1% Lev y per Redevelopment Total Direct Year Lev y School District School District Colle ge Board Bond Valley Water Tax Rate (2) Prop 13 (3) Rate (4) Rate (5) 2013 1.0000 0.1488 0.0736 0.0459 0.0998 0.1625 1.5306 0.16801 0.50301 2014 1.0000 0.1187 0.0704 0.0419 0.1350 0.1625 1.5285 0.16801 0.16647 2015 1.0000 0.0973 0.0655 0.0393 0.1081 0.1625 1.4727 0.16801 0.16646 2016 1.0000 0.1169 0.1194 0.0403 0.1182 0.1625 1.5573 0.16801 0.16642 2017 1.0000 0.1454 0.0992 0.0350 0.0795 0.1625 1.5216 0.16801 0.16644 2018 1.0000 0.0939 0.0957 0.0376 0.1007 0.1525 1.4804 0.16801 0.16637 2019 1.0000 0.1116 0.0771 0.0407 0.1126 0.1525 1.4945 0.16801 0.16622 2020 1.0000 0.1016 0.0848 0.0562 0.0969 0.1425 1.4820 0.16801 0.16627 2021 1.0000 0.1031 0.0805 0.0651 0.1034 0.1425 1.4946 0.16801 0.16160 2022 1.0000 0.1081 0.0829 0.0534 0.1089 0.1300 1.4833 0.16801 0.15871 Source: San Bernardino County Assessor's Office, Tax Rate Table, HdL, Coren & Cone Notes:
(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 incr emental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.

1.a
Packet Pg. 187
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO
(160)

Percentage
of Total City
Assessed Assessed Assessed
Taxpayer Value Value Rank Value
Walmart 96,109,166 1 2.13%
LBA RV-Company XI LP 75,247,534 2 1.67%
Lineage Master RE 3 LLC 73,455,978 3 1.63%
Tides at Grand Terrace Owner LLC 72,998,510 4 1.62% Hart Agua Mansa LLC 70,336,521 5 1.56%
MG District Appartments WTS LLC 64,977,262 6 1.44% Fedex Group Package System Inc 64,567,056 7 1.43% Wanvog Investments LLC 50,250,680 8 1.12% 43,304,500 2 1.66% Pacific West Management 34,787,117 9 0.77% 29,184,776 5 1.12% Ashley Furniture Industries, Inc. 34,432,956 10 0.76% 49,573,217 1 1.91% CSM Bakery Products NA Inc 38,898,705 3 1.50%
Meadow Lane Apartments LLC 35,504,022 4 1.36%
AMB Holding Co. LLC 25,945,547 6 1.00%
My Montecito III 23,623,132 7 0.91%
Bbrands (Multi) QRS 16-137 Inc 22,074,526 8 0.85% Grand Terrace Apartments California 21,663,704 9 0.83% Dexus SoCal LLC 18,375,000 10 0.71%
Total 637,162,780$ 14.13% 308,147,129$ 11.85% City Total 4,501,961,625$ 2,601,474,923$
Source: HdL Coren & Cone (SanBernardino County Assessor 2021/22 Combined Tax Rolls and the SBE Non Unitary Tax Roll 2022
Rank
Percentage of
Total City
Assessed
Value
2013

1.a
Packet Pg. 188
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(161)

Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Lev y Years Amount of Levy 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%
2022 4,920,482 4,857,954 98.73% 65,882 4,923,836 100.07%
(1) Dat
a 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 P
ercentage of Levy may exceed 100% if the amounts collected for subsequent years exceed the delinquency. (3) Tax
es 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

1.a
Packet Pg. 189
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

TAXABLE SALES BY CATEGORY

LAST TEN CALENDAR YEARS
(IN THOUSANDS OF DOLLARS)
(162)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Food Stores 48,432$ 44,015$ 49,272$ 48,391$ 41,426$ 42,616$ 43,994$ 45,502$ 37,311$ 29,754$ Eating and Drinking Places 110,280 86,252 84,418 77,833 73,909 71,469 65,441 59,595 55,333 51,508 Building Materials 118,047 101,079 109,459 145,448 134,653 108,327 86,755 79,713 63,885 49,120 Auto Dealers and Supplies 368,774 337,353 258,448 231,549 214,682 202,686 193,814 178,534 181,793 131,074 Service Stations 134,265 97,740 124,107 108,230 86,994 73,259 77,420 92,531 89,565 87,741 Other Retail Stores 181,580 152,432 150,504 146,398 140,152 151,424 137,254 122,343 123,763 118,089 All Other Outlets 369,645 354,779 273,744 238,180 215,035 189,468 178,787 160,301 149,862 130,003 Total 1,331,023$ 1,173,650$ 1,049,952$ 996,029$ 906,851$ 839,249$ 783,465$ 738,519$ 701,512$ 597,289$ Sources: HdL, Coren & Cone (State of California Board of Equalization, California Department of Tax and Fee Administration, State Controller's Office, The HdL Companies) Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories pres
ented are intended to provide alternative information regarding the sources of the City's revenue.

1.a
Packet Pg. 190
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

DIRECT AND OVERLAPPING SALES TAX RATES

LAST TEN FISCAL YEARS

(163)

Fiscal Year City & Local San Bernardino Count y
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%
2022 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.

1.a
Packet Pg. 191
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA
PRINCIPAL SALES TAX REMITTERS – IDENTIFIED BY CATEGORY, TOP 25

CURRENT YEAR AND NINE YEARS AGO
(164)

2022 2013
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
Warehouse/Farm/Const. Equip. Electrical Equipment
Textiles/Furnishings Used Automotive Dealers
Grocery Stores Service Stations
Trailers/RVs Electrical Equipment
Used Automotive Dealers Petroleum Prod/Equipment
Trailers/Auto Parts Grocery Stores Liquor
Trailers/RVs Trailers/RVs
Service Stations Service Stations
Food Service Equip./Supplies Trailers/RVs
Trailers/RVs Trailers/Auto Parts
Family Apparel Trailers/RVs
Service Stations Service Stations
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.

1.a
Packet Pg. 192
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)

(165)

Financing Pension Certificates Certificates Total Percentage Fiscal Notes and Authorit y Obligation of Capital Revenue Term of Capital Primar y of Personal Per Year Agreements Bonds Bond Participation Leases Bonds Loan Participation Leases Government Income Capita 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 2022 1,829 7,781 20,299 - 285 44,369 1,630 - - 55,894 4.8% 1,042 Notes: Details regarding the city's outstanding debt can be found in Note 7 of the notes to the financial statements.

Business-type Activities
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.

1.a
Packet Pg. 193
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2022
(166)

Total Debt Percent City's Share of Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: June 30, 2022 Applicable (1) June 30, 2022 San Bernardino Valley Joint Community College District 730,017,126$ 5.289 % 38,610,606$

Colton Joint Unified School District 189,142,661 30.510 57,707,426 Rialto Unified School District 93,496,428 5.602 5,237,670 San Bernardino Unified School District 276,764,806 0.007 19,374 TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT 1,289,421,021$ 101,575,076$

DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations 188,035,000$ 1.691 % 3,179,672$ San Bernardino County Pension Obligation Bonds 119,835,000 1.691 2,026,410 Rialto Unified School District General Fund Obligations 9,976,091 5.602 558,861 San Bernardino City Unified School District Certificates of Participation 83,385,000 0.007 5,837 City of Colton General Fund Obligations 7,715,000 100.000 7,715,000 City of Colton Pension Obligation Bonds 16,559,400 100.000 16,559,400 (2) San Bernardino County Flood Control District Certificates of Participation 44,780,000 1.691 757,230 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 470,285,491$ 30,802,410$

OVERLAPPING TAX INCREMENT DEBT (Successor Agencies):

City of Colton Tax Allocation Bonds 9,075,000$ 100.000 % 9,075,000$ San Bernardino County Inland Valley Tax Allocation Bonds 220,470,000 1.985 4,376,330 TOTAL OVERLAPPING TAX INCREMENT DEBT 13,451,330$

Total Direct Debt 24,274,400$

Total Overlapping Debt 121,554,416$

Combined Total Debt (2) 145,828,816$
(3)
Note:
(1) T
he percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

A
pplicable percentages were estimated by determining the portion of the overlapping district's assessed value that i
s within the boundaries of the city divided by the district's total taxable assessed value. (2) E
xcludes accreted interest.
(3) E
xcludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2021-22 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.26%
Total Direct Debt ($24,274,400) 0.54%
Combined Total Debt 3.24%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($1,578,566,525):

Total Overlapping Tax Increment Debt 0.85%
Source: Avenu Insights & Analytics
CA Municipal Statistics, Inc.

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.

1.a
Packet Pg. 194
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)

(167)

Legal Debt Margin Calculation for Fiscal Year 2022
Assessed value 4,673,233$
Debt limit (15% of assessed value) 700,985
Debt 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 700,985$
Fiscal Year
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Debt limit 700,985 $ 628,137 $ 589,740 $ 550,713 $ 512,597 $ 478,228 $ 450,803 $ 426,669 $ 402,703 $ 402,370 $ Total net debt applicable to limit - - - - - - - - - - Legal debt margin 700,985 $ 628,137 $ 589,740 $ 550,713 $ 512,597 $ 478,228 $ 450,803 $ 426,669 $ 402,703 $ 402,370 $ 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.

1.a
Packet Pg. 195
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(168)
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Business Type Activity
Revenue Bonds
Operating Net Income (1) 19,445 26,400 27,395 29,232 29,063 23,764 21,765 23,500 25,978 24,661 Debt Service - Principal 3,156 4,095 3,915 3,764 10,386 3,295 3,155 3,030 2,920 38,835 Debt Service - Interest 1,893 2,083 2,264 2,418 2,136 2,218 2,356 2,481 2,588 2,621 Coverage (2) 3.85 4.27 4.43 4.73 2.32 4.31 3.95 4.26 4.72 0.59 Notes: (1) Net
operating income (loss) exclusive of depreciation and connection fees, inclusive of investment revenue. (2) Rat
io of revenue to payments against bonds.

1.a
Packet Pg. 196
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS

(169)

Personal Per
Income Capita
Calendar (thousands Personal Unemployment Median
Year Population of dollars) Income Rate Age
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 2021 53,617 1,173,639 21,889 7.8% 31.8 Source: Population: California State Department of Finance. HdL, Coren & Cone Unemployment Data: California Employment Development Department. HdL, Coren & Cone

1.a
Packet Pg. 197
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA
PRINCIPAL EMPLOYERS – TOP 20

CURRENT YEAR AND NINE YEARS AGO
(170)

Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Arrowhead Regional Medical Center 3,745 1 14.74% 3,300 1 13.40% Colton Joint Unified School District 2,322 2 9.14% 740 5 3.00% Wal-Mart Distribution Center 1,100 3 4.33%
Lineage Logistics 555 4 2.19% 950 3 3.80%
County of San Bernardino 383 5 1.51%
Wal-Mart Supercenter 350 6 1.38% 350 8 1.40%
Ashley Homestore Outlet 330 7 1.30% 1,475 2 6.00%
City of Colton 291 8 1.15% 340 9 1.38%
Reche Canyon Rehabilitation & Health Care Center 255 9 1.00% 550 6 2.20% Stater Bros Market (3 Locations) 225 10 0.89% 258 10 1.00% Kaiser Foundation Health Plan 793 4 3.20%
Telco Foods 500 7 2.00%
Total 9,556 37.63% 9,256 37.38%
Source: MuniServices, LLC / Avenu Insights & Analytics
2022 2013

1.a
Packet Pg. 198
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS

(171)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General government
Management services 15 15 16 17 17 16 16 16 16 14 Finance 6 5 7 6 7 7 5 7 8 9 Information systems 2 2 3 3 3 3 3 3 3 3 Planning 1 7 6 8 7 6 6 6 7 7 Building 1 1 2 2 2 2 4 3 3 3 Other 6 6 8 10 12 20 23 24 23 24 Police
Field Officers 41 52 47 43 48 49 53 52 52 54 Support staff 26 17 28 25 27 27 29 29 29 27 Fire
Firefighters and supervisors 38 41 41 33 38 38 36 37 37 38 Support staff 1 1 1 1 1 1 - 1 1 2 Other public works
Engineering and administrative 5 5 5 4 4 5 6 4 6 6 Maintenance 15 11 23 24 18 19 22 22 21 21 Redevelopment 1 1 2 1 - - - - Community Services 10 12 12 12 12 11 9 8 8 9 Library 1 1 1 1 1 1 1 1 1 1 Water 14 13 19 15 15 14 12 13 14 15 Wastewater 8 21 16 23 22 22 20 22 22 23 Electric 37 36 40 39 41 41 37 36 35 35 Total 228 247 277 267 275 282 282 284 286 291 Source: Finance Department
Notes: 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

1.a
Packet Pg. 199
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(172)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General government
Building permits issued 454
707
774
1,170
918
1,072
1,164
856
1,069
895
B
uilding inspections conducted 2,560
2,369
5,137
4,677
3,824
3,861
4,812
3,554
4,486
5,276
P
olice
Physical arrests 1,717
1,722
2,094
2,801
2,404
2,597
2,116
1,541
1,547
1,464
P
arking violations 1,759
1,284
1,882
3,031
2,219
2,760
4,372
3,304
3,499
4,022
T
raffic violations 2,670
1,582
2,875
3,379
1,786
2,576
3,564
1,486
1,206
1,138
Fi
re
Emergency responses 5,480
6,092
6,817
7,048
7,692
7,281
8,035
8,040
8,181
7,961
Fi
res extinguished 279
270
262
327
361
476
492
358
570
531
I
nspections 832
534
623
743
757
784
798
742
814
O
ther public works
Street resurfacing (lane miles) 1.0 1
1 1
18 7
12 9
21 11
P
otholes repaired 1,500
1,800
1,700
1,600
1,500
1,600
1,400
1,500
1,664
1,144
P
arks and recreation
Facility usage permits issued 420
524
580
503
387
275
243
236
37 285
I
ndividual Facility Reservations 780
3,582
3,159
2,068
322
2,414
C
ommunity center attendance 219,432 245,315 230,486 220,136 228,493 225,465 230,540 89,454 18,797 26,092 Library
Volumes in collection 82,155 84,965 84,845 84,949 85,725 86,321 84,246 84,319 83,725 84,448 Total volumes borrowed 52,631 53,363 42,176 36,523 59,087 52,156 53,443 42,754 1,870 38,725
Water
New Connections 6
3 3
6 5
24 12
W
ater Main Breaks - 2
- 1
1 - 5
A
verage daily consumption
(thousands of gallons) 9,600
9,400
8,600
7,842
8,300
8,700
8,500
9,416
9,800
9,000
P
eak daily consumption
(thousands of gallons) 14,365 14,300 11,600 15,302 13,300 11,800 13,100 13,300 16,680 16,810 Wastewater
Average daily sewage treatment
(thousands of gallons) 5,800
5,800
5,055
5,155
4,810
5,022
5,100
5,045
4,988
5,160
E
lectric
New connections
Average daily consumption (kw) 951,170 952,901 901,179 1,029,500 1,002,597 1,016,732 977,479 883,282 963,125 992,469 Annual peak demand (kw) 85 83

84 81
81 87
86 83
88 83
Sources: Various city departments.

Fiscal Years

1.a
Packet Pg. 200
Attachment: Final ACFR (3971 : FY2021-22 ACFR)

CITY OF COLTON, CALIFORNIA

CAPITAL ASSETS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(173)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Police Protection
Stations 1 1 1
1 1
1 1
1 1 1
S
ubstations 1 1 1
1 1
1 1
1 1 1
P
atrol units 21 28 19 15
21 21
22 24
25 23
S
pecialized purpose units 41 43 44 42 42 42
44 47
41 42
Fi
re Protection
Stations 4 4 4
4 4
4 4
4 4 4
S
quad units 2 2 2
2 2
2 1
1 1 1
E
ngine units 7 8 7
7 7
7 8
8 7 7
O
ther public works
Streets and alleys - paved (lane miles) 305 306 307 307 308 308 308 308 308 308 Traffic signals 56 56 56 56
60 63
63 65
65 67
P
arks and recreation
Acreage 50 50 50 50
50 50
50 50
50 50
P
laygrounds 5 5 5
5 5
5 5
5 5 5
B
aseball/softball diamonds 11 11 11 11 11 11
11 11
11 11
S
occer/football fields 1 1 1
1 1
1 1
1 1 1
C
ommunity centers 4 4 4
4 4
4 4
4 4 4
S
wimming pool 1 1 1
1 1
1 1
1 1 1
T
ennis courts 2 2 2
2 2
2 2
2 2 2
Li
braries
Central Building 1 1 1
1 1
1 1
1 1 1
Sa
telite locations 1 2 2
2 2
2 1
1 1 1
B
ooks 72,944 84,965 84,845 84,949 85,725 86,321 73,827 73,926 73,287 73,990 Audiovisual recordings 9,211 9,418 9,523 9,607 9,727 9,768 10,313 10,393 10,438 10,458 Municipal Water Department
Residential meters 8,873 8,868 9,286 9,485 8,932 9,042 8,945 8,954 9,020 9,253 Commercial/industrial meters 1,133 1,184 1,176 1,196 1,161 1,214 1,164 1,174 1,192 1,224 Fire protection meters 180 181 179 181 193 206 182 189 186 190 Water mains (miles) 130 130 130 130 130 130 130 130 130 130 Fire hydrants 1,516 1,517 1,518 1,518 1,518 1,518 1,525 1,525 1,534 1,539 Storage capacity (thousands of gallons) 19,300 19,300 19,300 19,300 17,300 17,300 17,300 17,300 17,300 17,300 Wastewater
Sanitary sewers (miles) 178 178 178 178 178 178 178 178 178 178 S
torm 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 16,085 16,190 16,262 16,533 16,599 16,784 15,795 16,956 17,208 17,291 Commercial 2,474 2,491 2,498 2,517 2,528 2,547 2,569 2,580 2,626 2,658 Industrial 75 77 80 85
86 85
87 96
102 105
Municipal 245 246 247 257 261 267 268 268 272 276 Distribution lines (miles) 166 169 169 170 170 172 175 175 175 175 Streetlights 5,284 5,265 5,302 5,320 5,307 5,307 5,323 5,320 5,320 5,320 Sources: Various city departments.

Fiscal Years

1.a
Packet Pg. 201
Attachment: Final ACFR (3971 : FY2021-22 ACFR)
INDEP
ENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council
City of Colton
Colton, California
We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Colton, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Colton’s basic financial statements, and have issued our report thereon dated February 6, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Colton’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Colton’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Colton’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

1.b
Packet Pg. 202
Attachment: Final Internal Control Communication (3971 : FY2021-22 ACFR) City Council
City of Colton