Colton City Council
February 6, 2024

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
Deputy City Clerk Stephanie M. Vargas

AGENDA

CITY COUNCIL,

COLTON UTILITY AUTHORITY, COLTON PUBLIC FINANCING AUTHORITY,

COLTON HOUSING AUTHORITY

REGULAR MEETING
TUESDAY, FEBRUARY 6, 2024 – 6:00 P.M.

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

NO CLOSED SESSION

RULES OF DECORUM

To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rul es 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.

2 OPEN SESSION
6:00 P.M.

OPEN SESSION CALLED TO ORDER
INVOCATION Pastor Dane Aaker – Centerpoint Church
FLAG SALUTE Veterans of Foreign Wars (VFW) Commander Bernie Moyeda

ROLL CALL

CEREMONIAL MATTERS
Presentations, Awards, Proclamations
 Recognition - 2023 Holiday Program Sponsors
 Proclamation - Pastor Dane Aaker
 Recognition - Perfect CAASP Score - Skyler Peralta Thomas and Deanna Unkefer

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 disclosure shall be made part of the official public record of the proceeding, either as part of the minutes of the meeting or as a separate writing filed with the city. (CMC Section 2.04.030) AB 1234 ORAL REPORTS
Members of the City Council shall provide brief reports on meetings attended at the expense of the city. (GC Section 53232.3(d))

APPOINTMENTS
 Appointment - Utilities Commission - D3 - Nicolas Zupkofska

MAYOR AND COUNCIL DISCUSSION ITEMS

3 PUBLIC HEARINGS

To speak on public hearing items, it is requested that you obtain a card from the City Clerk and complete it by noting the agenda item number, as well as whether you are in favor, opposition or neither, and give it to the City Clerk. The applicant will be allowed 5 minutes to address the Council and all other persons will be allowed 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure. (1) CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO CONSIDER A PUBLIC HEARING TO APPROVE AND ADOPT RESOLUTION NO. R-09-24, PRIORITIZING PROJECTS TO BE FUNDED BY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR FISCAL YEAR 2024-2025, RESOLUTION NO.

R-09-24.
[Staff Person: Dawn Miller]
Mayor announces the Public Hearing Open.

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

Staff Presentation.

Public Comment.

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

MOTION __________ SECOND __________

(2) User Fee Update - Police/Administration, Planning, Public Works/Engineering, Electric Utility/Engineerin g -

TIME AND PLACE FIXED TO CONSIDER THE CONTINUED PUBLIC HEARING TO APPROVE AND ADOPT A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON UPDATING USER FEES FOR POLICE

DEPARTMENT/ ADMINISTRATION, DEVELOPMENT SERVICES/PLANNING, PUBLIC WORKS/ENGINEERIN G, ELECTRIC UTILITY/ENGINEERING, RESOLUTION NO. R-04-23.
[Staff Person: Mario Suarez]

***Continued Item from the January 16, 2024 Regular Council Meeting***

Staff Presentation.

Public Comment.

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

MOTION __________ SECOND __________

4 BUSINESS ITEMS
To speak on business items, it is requested that you obtain a card from the City Clerk and complete it by noting the agenda item number, as well as whether you are in favor, opposition or neither, and give it to the City Clerk. The applicant will be allowed 5 minutes to address the Council and all other persons will be allowed 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.
(3) FY2022-23 ACFR and Related Reports - Receive and File the FY2022-23 Annual Comprehensive Annual Financial Report (ACFR) and Related Reports.
[Staff Person: Stacey Dabbs]

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 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.

Please state your name and your City of Residence before providing your comment.

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

(4) Minutes - Approval of Minutes for the City Council Regular Meeting held on January 16, 2024, on file in the Office of the City Clerk.
[Staff Person: Stephanie M. Vargas]

5 (5) Warrants - Approve US Bank voucher dated 12/08/2023 for $78,958.17; voucher numbers 209342 to 209445 dated 11/30/2023 and totaling $628,096.34; voucher numbers 209446 to 209523 dated 11/30/2023 and totaling $75,992.21; voucher numbers 209524 to 209657 dated 12/07/2023 and totaling $1,787,758.36; wires dated 12/12/2023 and totaling $5,358,786.49; voucher numbers 209658 to 209732 dated 12/14/2023 and totaling $649,014.02; voucher numbers 209733 to 209788 dated 12/18/2023 and totaling $663,089.22; voucher numbers 209789 to 209897 dated 12/21/2023 and totaling $751,294.75; voucher numbers 209898 to 209974 dated 12/28/2023 and totaling $82,446.95; voucher numbers 209975 to 210088 dated 01/04/2024 and totaling $843,387.70; voucher numbers 210089 to 210231 dated 01/11/2024 and totaling $960,747.78; a payroll disbursement listing dated 10/28/2023 to 11/10/2023 and totaling $1,095,675.78 and a payroll disbursement listing dated 11/11/2023 to 11/24/2023 and totaling $1,164,609.54.
[Staff Person: Stacey Dabbs]
(6) City Treasurer's Report - Receive and File City Treasurer's Report for November 2023. [Staff Person: Aurelio De La Torre]
(7) Agreement - Blais & Associates - Approve Professional Services Agreement with Blais & Associates to Provide Grant Writing Services for the South Coast Air Quality Management District Carl Moyer Grant Program.
[Staff Person: Charles Berry]
(8) Amendment - Conflict of Interest Code - Approve and Adopt a Resolution Amending the City of Colton’s Conflict of Interest Code Pursuant to the Political Reform Act of 1974, RESOLUTION NO. R-10-24. [Staff Person: Stephanie M. Vargas]
(9) Contract Amendment - Ninyo & Moore - Approve Contract Amendment No. 3 with Ninyo & Moore to Complete Environmental Work at the Corporate Yard.
[Staff Person: Charles Berry]
(10) Contract Award/Reimbursement Agreement - Rincon Consultants/Knight-Swift - Approve Contract for Environmental Services with Rincon Consultants and Reimbursement Agreement with Applicant for Knight - Swift Transportation Holdings, Zoning Text Amendment, Conditional Use Permit and Architectural and Site Plan Review.
[Staff Person: Mario Suarez]
(11) Land Lease Agreement - BNSF Railway Company - Approve Indefinite Term Land Lease Agreement with BNSF Railway Company for the Construction of South La Cadena Dog Park Acces s Road Project. [Staff Person: Brian Dickinson]
(12) Notice of Completion - Fire Station 212 Restroom/Shower Room Remodel Project - Approve Notice of Completion (NOC) for the Fire Station 212 Restroom/Shower Room Remodel Project with Performance Construction & Painting.
[Staff Person: Brian Dickinson]
(13) Notice of Completion - Guardrail Project - Approve the Execution and Recordation of the Notice of Completion for the HSIP Funded Guardrail Repair Project (HSIPSL-5065/032). [Staff Person: Brian Dickinson]
(14) Second Reading of Ordinance No. O-01-24 - Waive Full Reading, Read By Title Only and Approve Second Reading of an Ordinance of the City Council of the City of Colton California Amending Colton Municipal Code Chapter 8.16 for the Purpose of Clarifying the Application of the Chapter to Vacant Properties, ORDINANCE NO. O-01-24.
[Staff Person: Stephanie M. Vargas]

6 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

7 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(a), 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 R ecord, it is requested that you obtain a card from the Deputy City Clerk and complete it by noting a specific item number on the Agenda, if applicable, or you can identify the subject that you wish to address under the Public Comment portion of the Agenda. The City Council encourages public input on all City issues within the Rules of Decorum. Speakers will be limited to the time periods provided on the Agenda; provided, however, that the presiding officer shall have certain discretion to extend or limit t ime as provided 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 d isrupt 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 public 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 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 councilmemb ers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.

8 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 con cerning 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-41-18. Copies are available in the Office of the City Clerk.

ITEM NO. 1

STAFF REPORT

DATE: FEBRUARY 6, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: DAWN MILLER, ASSISTANT TO THE CITY MANAGER SUBJECT: TIME AND PLACE FIXED TO CONSIDER A PUBLIC HEARING TO APPROVE AND ADOPT RESOLUTION NO. R-09-24, PRIORITIZING

PROJECTS TO BE FUNDED BY COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) FUNDS FOR FISCAL YEAR 2024-2025,
RESOLUTION NO. R-09-24.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

1) Accept all public testimony at the duly -noticed Public Hearing concerning the Community Development Block Grant (CDBG) funding proposals. 2) Adopt the attached Resolution R -09-24 approving the final prioritized list of recommended CDBG projects for Fiscal Year 2024-2025.
3) Authorize the City Manager to execute all applicable documents related to this action.

BACKGROUND

Since the Community Development Block Grant (“CDBG”) program’s inception in 1974, it has provided financial assistance to grantees for a variety of community development purposes. The U.S. Department of Housing and Urban Development (“HUD”) uses a formula to calculate the grant amount for each metropolitan city, urban county , and state. CDBG funds can be used to benefit low- and moderate-income residents by: building roads, parks, repairing or rehabilitating housing in target areas, by providing new or increased public services to income -qualifying residents, or by funding initiatives that generate new jobs. The County of San Bernardino’s Community Development and Housing Department (“CDH”) currently provides project

1.1 Packet Pg. 9
Staff Report to the Mayor and City Council
CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO

CONSIDER A
February 6, 2024

oversight for CDBG projects through the Urban County program, in which Colton is a partner and joint recipient.

Staff met with the CDBG Ad-hoc Committee on November 20, 2023 to review projects proposed by staff for submittal to CDH by the December 11, 2023 deadline. The CDBG Ad -hoc Committee consists of Mayor Navarro, Councilmember Gonzalez, and Planning Commissioners Baden and Grossich. The committee members present approve d the list of projects, and an application was submitted for each project to CDH prior to the deadline.

CDH completed its review of Colton applications, and on January 9, 2024, provided a list of eligible project applications. All projects submitted by Colton were deemed eligible for funding.

CDH has requested that Colton submit its list of funding recommendations by February 13, 2024. This list is to be submitted on the Cooperating City Recommended Projects Form and must be formally approved by the Cit y Council. The completed Cooperating City Recommended Projects Form is included as an attachment to Resolution R-09-24.

ISSUES/ANALYSIS

The list of eligible project applications provided by CDH includes all projects submitted by the City. This is the same list that was reviewed and approved by the CDBG Ad -hoc Committee on January 23, 2024. As such, staff is recommending that the City Council formally approve this list of projects for formal submission back to CDH prior to the February 13, 2024 deadline . An approved Cooperating City Recommended Projects Form, along with City Council meeting minutes from the applicable City Council meeting, showing this approval, is the required documentation to be submitted to CDH.

There was one additional funding appl ication submitted to the County for consideration. The application is from an organization called “True Word Apostolic Church,” with an address listed in San Bernardino, California. The application requests for $40,000 which would be sixty -seven percent of Colton’s allocation for Public Service projects, to provide hot meals to approximately 160 individuals and families from low -and moderate-income households at their facility in the City of San Bernardino and will deliver meals to those who are not able to come. A copy of this application is attached for reference. Staff does not recommend that Colton funding be allocated to this program, as to do so would take funding away from existing Public Service programs, which are established, have performed wel l using CDBG funding in the past, and rely on this funding to operate. By removing any CDBG funding from these programs, it is unlikely that they could continue without the identification of another funding source.

FISCAL IMPACTS

1.1 Packet Pg. 10
Staff Report to the Mayor and City Council
CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO

CONSIDER A
February 6, 2024

The City’s anticipate d allocation of CDBG funds for Fiscal Year 2024 -2025 is $396,950, with $59,543 eligible for Public Service projects. CDBG funded projects completed by the City are 100% reimbursable, up to the approved project limit. Funded capital improvement projects w ill be included in the FY2024-25 Capital Improvement Program and will be included in the City’s budget. Funded Public Service projects will be included in the City’s budget by the Community Services Department.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. Public Hearing Notice

2. Resolution R-09-24 CDBG Prioritization FY2024-2025

3. Exhibit A – Cooperating City Recommended Projects Form

4. Application - True Word Apostolic Church

1.1 Packet Pg. 11

NOTICE OF PUBLIC HEARING

NOTICE IS HEREBY GIVEN to the public that the City Council of the City of Colton will hold a public hearing in the Council Chambers of the City Hall, located at 650 North La Cadena Drive, on TUESDAY, FEBRUARY 6, 2024, at 6:00 P.M., or as soon thereafter as the matter may be heard, to consider the following actions:

COMMUNITY DEVE LOPMENT BLOCK GRANT (CDBG) PROJECT
PRIORITY RECOMMENDATIONS FOR FISCAL YEAR 202 4/2025
CDBG FUNDS.

Copies of project proposals eligible and those recommended for funding are available for public inspection in the Office of the City Clerk at 650 North La Cadena Drive, Colton, California.

The open session of the City Council begins at 6:00 P.M. that evening in the Council Chambers located at 650 North La Cadena Drive.

If you challenge the proposed action in court, you may be limited to raising only those issues that you or someone else raised at the public hearing described in this Notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing.

Dated: January 17, 2024

/s/

________________________________

STEPHANIE VARGAS
Deputy City Clerk
City of Colton

1.1.a
Packet Pg. 12
Attachment: Public Hearing Notice (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO CONSIDER A)

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RESOLUTION NO. R-09-24

A RESOLUTION OF THE CIT Y COUNCIL OF THE CITY OF COLTON, CALIFORNIA ,

PRIORITIZING PROJECTS TO BE FUNDED BY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR FISCAL YEAR 2024-2025

WHEREAS, the City Council of the City of Colton elected t o enter into a Cooperation Agreement with the County of San Bernardino in order to receive Community Development Block Grant (“CDBG”) funds; and

WHEREAS, as a “Cooperating City, ” the City of Colton anticipates receiving $396,950 in CDBG funds for Fiscal Year 2024-2025; and

WHEREAS, the City Council, as the governing body of the City of Colton, is required by statute to take a formal action approving a prioritized list of projects to be recommended to the County for funding with CDBG funds for Fiscal Year 2024-2025 as part of their Urban County Consolidated Plan to comply with CDBG program regulations and subject to available funding; and

WHEREAS, the City Council seated a committee, known as the CD BG Ad Hoc Committee, comprised of t wo (2) City Counc il members and t wo (2) Planning Commissioners, to review the eligible projects and make funding reco mmendations to the Council; and

WHEREAS, the CDBG Ad Hoc Committee met on January 23, 2024, and determined their recommendations for prioritization of the available CDBG allocation; and,

WHEREAS, the City of Colton is required to inform the County of San Bernardino , through completion of the Coo perating City Recommended Projects form, regarding the priority of eligible projects to be funded with CDBG funds for Fiscal Year 2024-2025.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON, DOES HEREBY RESOLVE AND FIND AS FOLLOWS:

SECTION 1. The City Council hereby finds and determines that the foregoing recitals are true and correct.

SECTION 2. The City Council of the City of Colton hereby prioritizes the projects for funding with CDBG funds in Fiscal Year 202 4-2025, as listed on the Cooperating City Recommended Projects Form, attached hereto as Exhibit A, and incorporated by reference.

SECTION 3. The City Council of the City of Colton has determined that the prioritization recommendation in this Resolution is not a “project” requiring environmental review pursuant to the California Environmental Quality Act (Public Resources Code, sections 21000, et seq.); rather, this prioritization relates to a government funding mechanism that does not involve any commitment to any specific project and, as a result, is excluded from the defi nition of

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Attachment: Resolution R-09-24 CDBG Prioritization FY2024-2025 (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE

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“project” in section 15378(b)(4) of the State CEQA Guidelines (Title 14 California Code of Regulations sections 15000, et seq.). The Deputy City Clerk is authorized and directed to file all appropriate n otices pursuant to CEQA with the Clerk of the Board of Supervisors of the County of San Bernardino, California.

SECTION 4. The Deputy City Clerk shall certify to the adoption of this Resolution.

This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 6th day of February, 2024.

________________________________
FRANK J. NAVARRO, Mayor

ATTEST:

STEPHANIE VARGAS, Deputy City Clerk

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Packet Pg. 14
Attachment: Resolution R-09-24 CDBG Prioritization FY2024-2025 (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE City (1): City Council Hearing Date (2): 6-Feb-24
$ 396,950 Public Service Limit (15%) (4): $ 59,543 $19,626.78 Public Service
YIN
(8)
Applicant's
Requested Amount (9)
City's 2024-2025
Recommended
Allocation Amount
(10)
Available
Unprogrammed
Funds to Commit
to Activity
(11)
Public Service
Amount
(12)
Activity
Total
(13)
Y $ 25,000 $ 25,000 $ - $ 25,000 25,000$ Y $ 15,000 $ 15,000 $ - $ 15,000 15,000$ Y $ 22,500 $ 19,543 $ - $ 19,543 19,543$ $ - $ - $ - -$ N $ 488,400 $ 337,407 $ - $ - 337,407$ $ - $ - $ - $ - -$ $ - $ - $ - $ - -$ $ - $ - $ - $ - -$ $ - $ - $ - $ - -$ $ - $ - $ - $ - -$ $ - $ - $ - $ - -$ Totals (14)
550,900$ 396,950.00$ $ - $ 59,543.00 396,950.00$ Public Service Calculation (15):
59,543$
Less Total Public Service
Activity Amount: $ 59,543.00 $ (1) 19,626.78$
Signature Date (18)
The City agrees to enter into a "General Fund Guarantee" in order for the County to recommend activity funding.

COUNTY OF SAN BERNARDINO
Community Development and Housing Department
2024-2025 Community Development Block Grant (CDBG) Program Cooperating City Recommended Projects Form
CDH Application Log #
(6)
COLT24CN-003
City's 2024-2025 Allocation (3):

Available Unprogrammed Funds From
Prior Years (5):

City of Colton
COLT24PS-010
Project Title
(* indicates project requires a "General Fund Guarantee") (7)
Colton: Homeless Services
Colton: Afterschool Programs at the Thompson Teen Center Colton: Literacy Program
Colton: Alley and Sidewalk Improvement Project
COLT24PS-017
COLT24PS-011
Remaining Balance of Unprogrammed Funds (16):

Public Service Limit:

Authorized City Representative (17):

General Fund Guarantee Certification (19)
For Third-Party capital improvement activities, the City understands that reimbursements received from the County for which no measurable outcome is achieved may subsequently be required to be repaid by the City (using non-federal funds) to County. Measurable outcomes are defined as providing benefits to low- to moderate-income individuals, families, organizations, and communities and are derived from the project or program.

Amount Available to Program to Public
Service Activities:

YES

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Packet Pg. 15
Attachment: Exhibit A – Cooperating City Recommended Projects Form (4305 : CDBG Project Public Services Program Application Fiscal Year –
San Bernardino County
Fiscal Year -
Public Services Progra m Ap plication
The following documents must be submitted in the order listed, please be sure to submit all attachments with your application.

Exhibit 1: Organization Information
Exhibit 2: Project Information
Exhibit 3: Community Needs and Target Population
Exhibit 4: Project Budget & Sources
Exhibit 5: Performance & Outcomes
Exhibit 6: Agency Capacity Narrative
Exhibit 7: Civil Rights Laws Compliance and HUD Good Standing Exhibit 8: Signature and Assurances
Application Checklist
_______________
Log Number
(Office Use Only)
1 ✔
✔
✔
COLT24PS-046
2024
2025
✔
✔
2024
✔
✔
✔
2025
✔

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Packet Pg. 16
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Exhibit 1: Organization Information
Organization Name:

Organization Address:

City/State/Zip:

Phone:

Fax:

Email:

Applicant Type:

Authorized Person Name:

Authorized Person’s Title:

Address:

City/State/Zip:

Phone:

Fax:

Email:

Application Contact Person’s Name:

Application Contact Person’s Title:

Explain the Agency’s 1) Mission, 2) Purpose, 3) Population Served, 4) Number of years serving population, 5) Supportive Services, their Funding Sources, and Start/End Dates. 2 [email protected]
Pastor/CEO
[email protected]
The purpose of True Word Ministries is to bring inspiration, restoration, and most importantly salvation to our communityand around the globe.Our Mission is to spread the love of Christ by meeting individuals and families where they are, ministering to their needs, and providing resources that will educate them to become fiscally, spiritually, and emotionally balanced.

With the continual support of generous in-kind donations and major donor gifts, this ministry has served 145 unduplicated individuals and families in 2023, making a tangible impact on the lives of seniors, veterans, disabled and handicapped individuals, as well as low-income families. Since 2009, the services provided, including hot meals, meal baskets, shoes, toys, school supplies, and scholarships, reflect our commitment to meeting the diverse needs of our community and spreading the love of Christ through practical assistance and compassionate outreach."
True Word Apostolic Church
Lafayette Boyd, Ph.D.

Church Consultant
2024
909-910-5037
none
25317 Noble Canyon Street
909-402-4095
3006 Macy Street
San Bernardino / California / 92407
Deniece Marshall
2025
Non-Profit
Corona / CA / 92883

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Packet Pg. 17
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Exhibit 2: Project Information
Project Title:

Project Address:

County Supervisorial District where project will be located:
1st District 2nd District 3rd District 4th District 5th District If you are requesting funds for an existing CDBG project, provide prior CDBG project number.

Will this project provide an opportunity to hire minority-owned and women owned businesses? If YES, describe what actions will be completed to implement such subcontracting plans to monitor this component of the proposed project. If NO, discuss why and what actions are being taken to encourage minority-women businesses to apply for this project. 3 If this is an Expansion of Service to previously funded CDBG project, please explain how this is an expansion of service?. (i.e For 2015 we proposed 60 units of service, this year the agency is planning to serve 100 units of service)
Is this a New Public Service Project, or request to expand services to an existing CDBG project? Yes
True Word Ministries Senior Meals Program
2024
X
This project will implement subcontracting plans that prioritize diversity and monitor these components by developing and communicating clear policies that emphasize the importance of diversity and inclusion in the procurement process. This project will actively seek out women and minority-owned businesses by engaging with local business chambers and using them to connect with potential subcontractors. This project encourages strong commitment and mutual trust, capacity building, and regular monitoring. 3006 Macy Street, San Bernardino, CA 92407
2025
N/A
N/A
New Public Service Project

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Packet Pg. 18
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
EXHIBIT 2A: Countywide Vision
Indicate Yes/No in the table below if any of these countywide vision goals are pertinent to the proposed project.

Countywide Vision
Countywide Vision Yes/ No
Implement the Countywide Vision.

Create, Maintain and Grow Jobs and
Economic Value in the County.

Improve County Government Operations.

Operate in a Fiscally-Responsible and
Business-Like Manner.

Ensure Development of a Well-Planned,
Balanced, and Sustainable County.

Maintain Public Safety.

Provide for the Health and Social Services
Needs of County Residents.

Pursue County Goals and Objectives by
Working with Other Governmental
Agencies.

Provide a brief narrative of how your project meets the Countywide Vision:
4 True Word Ministries aligns with and contributes to San Bernardino County's wider vision in several ways::(1) Promotes Healthy Aging by supporting health and well-being & reduces the risk of malnutrition-related health issues among our seniors, (2) Gives access to proper nutrition enhancing the overall quality of life for the elderly population & aligning with a vision for healthier and more vibrant communities, (3) Creates community equity and inclusion by actively addressing vulnerabilities and supporting many and various needs, (4) Aligns with the vision that emphasizes social services and support for those in need, (5) Provides opportunities for social interaction, reducing social isolation among the elderly & contributing to a more connected community & (6) Requires collaboration that aligns with the County's vision that emphasizes building partnerships
Yes
No
Yes
Yes
2024
Yes
Yes
2025
Yes
Yes

1.1.d
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Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Exhibit 3: Community Needs and Target Population
Community Needs Target Population
Public Service
Needs:

Yes/No Proposed Community: Yes/No
Senior Services Low and Moderate Persons
Handicapped
Services
Low and Moderate
Households
Youth Services Abuse d Children
Child Care
Services
Handicappe d Persons
Transportation
Services
Illiterat e Persons
Substance Abuse
Services
Homeless Persons
Employment
Training
Migrant Farm Workers
Health Services Elderl y People
Lead Hazard
Screening
Crime
Awareness
5 City/Target Area of Project Beneficiaries
Participating Cities: (i.e Redlands, Colton, Yucaipa)
No
No
No
Yes
Yes
Yes
Yes
No
Yes
2024
No
Seniors, low-income individuals, and low-income families with food insecurities will be direct beneficiaries of this project. We will establish strong collaborations with community organizations and government bodies in Colton, CA to leverage existing resources and expertise.

Yes
Yes
Yes
2025
No
No
No
Yes
No

1.1.d
Packet Pg. 20
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Exhibit 3: Community Needs and Target Population (con tinued) Describe the geographic boundaries of the neighborhood, community or area in which clients of the proposed program reside (attach a map if needed):

HUD Demographics: (Yes/No)
Does this project help prevent homelessness?
Does this project help the homeless?
Does this project help those with HIV or AIDS?
Does this project primarily help persons with disabilities? Summarize the description of your project to include 1) priority, 2) sub-activity, 3) population(s) to be served, and 4) accomplishment level, and 5) services to be provided. 6 Yes
The geographical boundary coordinates of Colton are 34.075127,-117.309090 (map attached) 2024
Yes
Yes
2025
Our senior meals project places a high priority on addressing the nutritional needs of vulnerable populations, specifically seniors, veterans, and individuals with disabilities. By placing a high priority on addressing the nutritional needs of vulnerable populations, including seniors, veterans, and individuals with disabilities; the project aims to make a meaningful impact. We will provide hot and nutritious meals to seniors, aiming to enhance their well-being and overall quality of life. The targeted nature of this effort ensures that those who have served our country (veterans) and individuals facing disabilities are included in the support network. As a sub-activity of our broader mission, we'll collaborate closely with local food banks to efficiently source grocery bags. These bags will be made available to food-insecure families/individuals and unemployed or underemployed individuals. This strategic approach extends the project's reach. By providing these grocery bags, the project not only addresses immediate nutritional needs but also contributes to the overall stability of vulnerable populations. Our project's accomplishment level is notable, as evidenced by the consistent support from generous donors. This sustained backing indicates the project's effectiveness and the recognition of its importance in the community.

No

1.1.d
Packet Pg. 21
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Describe how this project meets the priority population and activities selected.

Explain why this project is needed and what evidence can you substantiate the need.

Describe what gaps of service in the county this project fills.

What are the critical factors for the success of your project (include both financial and human resources)? For instance, is this the only funding for this project? What happens if funding decreases? Does this project rely on only one source of leveraging? Is there adequate staff
involved with the project if there is project turnover? Please address any factor that is critical to project
success.
7 This project is needed because it addresses a comprehensive set of needs for its participants.

The benefits are nutritional, social connections, improved mental and physical health, support and belonging, cost effective and promotes aging in place. The evidence from research, real- world initiatives, and participant testimonies supports its impact and effectiveness. 2024
The senior meals project not only focuses on serving nutrition to seniors but also expands its impact by collaborating with local food banks to serve a diverse group of individuals facing various challenges. The selected activities align with True word Ministries' all-embracing mission of ministering to their needs and providing them resources. 2025
1) By offering Senior Meals on Saturdays, our program fills a gap in weekend coverage. We can cater to a broader range of participants by offering meals on Saturdays. This will provide flexibility for seniors who may have different schedules or preferences,2) The existing congregate meal sites are not as immediate to certain vulnerable areas. Being positioned on the outer skirts of existing services allows our program to more effectively reach and serve seniors in potentially underserved or vulnerable areas within the City of Colton For financial and project management, our success criteria is to:Secure diverse funding streams to alleviate the impact of potential decreases in fundingDevelop a sustainable financial model that considers our long-term operational costs, potential fluctuations in funding and strategies for maintaining financial stability over timeEnsure staffing redundancy by cross- training staff/volunteers to handle multiple responsibilities and tasksRegularly monitor and evaluate project outcomesEstablish and updating clear and transparent communication with our stakeholders

1.1.d
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Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Exhibit 4: Project Budget & Sources
Project Budget
SB County Share: ($) Other Source: ($)
Personnel
Equipment (Rental, Lease or Purchase)
Consultant Services
(Auditing, Accounting or Payroll)
Space Rent
Insurance
Consumable Supplies
Other
Total Costs
Total Project Budget Cost: (CDBG S hare + Other Source) 8 $500.00
$0.00
$500.00
$0.00
$0.00
2024
$0.00
$3,000.00
$1,000.00
$0.00
$0.00
$40,000.00
$0.00
$3,200.00
2025
$33,800.00
$41,000.00
Groceries for hot meals and Food Pantry Bags
$0.00

1.1.d
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Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Exhibit 4A: CDBG Funds Requested and Leveraging Information Indicate the amount being requested by the city.

City Amount Requested ($):
(This amount should match the grand
total requested from CDBG Share)
9 Leveraging items may include any written commitments that will be used towards your cash match requirements in the project, as well as any written commitments for building, equipment, materials, services and volunteer time.

Source of
Funding:

Type of Funding: (Grant Name,
EFSP Money)
Amount ($): Date
Available:
(11/22/2016)
Federal
Funding
State
Funding
County
Funding
Private
Funding
Other:

Total Leveragin g Funds
None
In kind Donations
$5,500.00
None
Philanthrophy Donor
2024
Colton
None
2025
$40,000.00
$25,000.00
$30,500.00

1.1.d
Packet Pg. 24
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Exhibit 5: Performance and Outcomes
Definitions :

Unduplicated Clients: The number clients/persons projecte d to be served during the program year (e.g. 25 clients, 50 seniors):

Duplicated Clients: The estimated yearl y units of servic e (duplicated, e.g. 25 client s x 10 visits=25 0 units of service):

Complete the chart below with the number of Duplicated and Unduplicated Clients to be served.
•In column 1 identify activities that will be completed (e.g. intervention, counseling, and case management).
•In column 2 indicate the number of Unduplicated Clients to be served. •In column 3 identify the number of Duplicated Clients to be served.

Activities to be Completed (1) Und uplicated
Clients to be
Served (2)
Duplicated Clients
projected to be
served (3)
Performance and Outcomes, answer the following narrati ve question s using minimum fund s request.

Indicate a timeline of servi ces provided to client(s) in order to meet project outcome(s).

Describe how your agency determines client(s) success.

Describe your methodology to evaluate project outcomes. 10 10
40 Define project objectives; identify any risks; develop project, plan budget; communicate with team; execute the tasks; engage clients; define if project meets goals; review and evaluate project
Food Baskets
Referrals
80 40
Pre-evaluate with intents that are specific, measurable, achievable, relevant & timebound(SMART); review the process and analyze results 2024
200
320
Hot Meals
2025
Client success is measured by client's testimonials and life impact; client's engagement in attendance, involvement in community events and by client's communication and feedback; and client's retention

1.1.d
Packet Pg. 25
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Exhibit 5A: Proposed Goals & Milestones
Explain how the project will meet contract goals and milestones and be completed within 12 months (July 1, – June 30, ). For example, project
expenditures and
performance/
accomplishment goals of 40% by November 30th, 50% by December 31st, 80% by March 31st, and 100% by June 30th.

Fill-in the table below with dates for submission of reimbursement claims and the estimated amount of each.

Date of Reimbursement: Amount ($):

Total Reimbursement:
($)
11 $3,333.00
10/01/2024
$3,333.00
$3,333.00
$3,333.00
04/01/2025
$3,337.00
Define project goals, objectives & success criteria, survey & assess the nutritional needs of the senior population/ goal of 30% 8 /1/24; develop a detailed plan for the senior meals program, including menu options/ goal of 50% 10/1/24; approvals & permits from relevant authorities, kitchen & meal preparation/setup pilot launch, full program launch/goal of goal of 70% 1/30/25, monitoring & quality assurance evaluation, events & education/ goal of 85% 4/1/25, program review for expansion, sustainability and impact/goal of 100% 6/30/25. 08/01/2024
$3,333.00
$40,000.00
12/01/2024
$3,333.00
2024
2024
$3,333.00
$3,333.00
05/01/2025
02/01/2025
06/01/2025
$3,333.00
$3,333.00
$3,333.00
09/01/2024
01/01/2025
11/01/2024
2025
2025
09/01/2024
03/01/2025

1.1.d
Packet Pg. 26
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
Exhibit 6: Agency Capacity Narrative
(Non-Profit Organizations Only)
Describe the roles of key administrators, staff members, and volunteers within your agency that will implement the proposed project. In your description include experience, education, and licens
ing qualifications.

Describe your agency’s experience in administering government and/or public funds.

Describe your method to sustain project viability over the multi-year process if funding decreases.

Instructions: Complete the table below by marking “YES” or “NO” to the questions listed below.

Question:

Example: Have you received federal funds in the past
five years? Yes
In the past ten years, has your organization ever had its nonprofit status revoked or withheld by the IRS, the
Secretary of State, the State Attorney General, or the
Franchise Tax Board?
Has your organization been sued in the last five years? Are any of your managers or staff with fiscal
responsibilities involved in litigation presently that has any bearing on fiduciary trust or employee relations?
Have any unfavorable rulings been handed down by any
court against your organization or Executive Director the last five years?
Does your organization currently have any unresolved
fiscal, reporting, or program issues with any of its funding sources?

YES/ NO
12 No
No
No. We've taken a proactive motion to capacity building; learning from experiences we've enhanced our ability to gain and manage gov funding
2024
Our method to sustain project viability 1- pursue diverse funding sources, 2-.develop fundraising strategies, 3-.monitor/evaluate using KPIs,4- build community support, nourish strong relationships with funders
No
No
No
2025
Eunice Boyd-Key Admin (15yrs); Nekiya Blakely, Staff Member (13yrs) BA Admin; Molly Boyd, Staff Member (13yrs) Masters Degree; 8 volunteers

1.1.d
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Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
EXH IBIT 7: Civil Rights Laws Compliance and HUD Good Standing Answer the following questions.

Has your organization been a past recipient of assistance under a HUD McKinney Act program or the HUD Single Family Property Disposition Homeless Program? If you have been a recipient under either of these programs, has your agency experienced any project or construction delay, HUD finding or outstanding audit that HUD deems serious regarding the administration
of HUD McKinney
Act programs or the HUD Single Family Property
Disposition Homeless Program?
If you answered “Yes”,
please explain the
circumstances and outcome below.

Applicants must be in compliance with applicable civil rights laws and Executive Orders. Applications
will be rejected if your agency has any of the following: (1) Any pending civil rights lawsuit
instituted by
the U.S. Department of Justice; (2) Any noncompliance with civil rights statutes, Executive Orders or regulations as
a result of formal administrative proceedings,
unless the applicant is operating under a
HUD-approved compliance agreement designed to correct the area of noncompliance or is currently
negotiating such an agreement; (3) Any unresolved Secretarial charge of discrimination issues under Section 810(g) of
the Fair Housing Act, as implemented by 24 CFR 103:400; (4) Any adjudication of a
civil rights violation in a civil action brought against the Organization by a private individual, unless the applicant is operating in compliance with a court order designed to correct the area of noncompliance or the applicant has discharged any responsibility arising from such litigation; (5) Any deferral of the processing of applications
from the sponsor imposed by HUD
under Title VI of the Civil Rights Act of
1964,
the Attorney General’s Guidelines (28 CFR 50.3) or the HUD Title VI regulations (24 CFR 1.8) and procedures, or under
Section 504 of the Rehabilitation Act of 1973 and HUD Section 504 regulations (24 CFR 8.57). If one or more of these situations exists with your Organization, please
attach a brief description.
13 No
No
2024
2025

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Packet Pg. 28
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO E-Signature Authorization
San Bernardino County
Community Development and Housing Departmemt
Community Development Block Grant
- Application
In order to comply with all applicable federal grant regulations, a hard-copy of this E-Signature Authorization containing an original wet signature must be filed with the San
Bernardino County Community Development and Housing (CDH) in order for the applicant to electronically sign the Community Development Block Grant (CDBG) application documents online. This authorization may only be completed by a registered owner, partner, executive officer, or authorized employee (with proof of authorization) of the applicant submitting this form and must contain an original signature to be submitted to the CDH.

Authorization Agreement
I am an owner, partner, executive officer, or duly authorized employee of the below-listed applicant and have authority to enter into agreements on behalf of the below-listed applicant. CDH may rely on the receipt of such agreements executed and delivered by fac simile or other electronic means as if the original had been received. The undersigned agrees that the electronic signatures appearing on documents submitted from the below-listed applicant are the same as handwritten signatures for the purposes of validity, enforceability and admissibility. By signing this Elec tronic Signature Authorization
Agreement, I authorize the CDH to accept, via electronic submission, documents submitted from the below-listed applicant as required by the CDH's CDBG - Funding Application.

I understand that CDH may change the CDBG application system from time to time. I agree that the below-listed applicant will electronically sign all documents requiring a signature related to the CDBG funding application.

My signature on this form certifies that:

I agree that entering my name in the CDBG funding application system constitutes my electronic signature. I understand that any information and documents submitted using my name is electronically certifying my signature. I understand that I am legally bound, obligated, and responsible by use of my electronic signature as much as I would be by my handwritten signature. I agree that I will protect my signature from unauthorized use, and that I will contact CDH immediately, upon discovery that my electronic signature has been compromised. I certify that my electronic signature is for my own use, and that I will not delegate it or share it with any individual.

This request is effective immediately upon receipt by the CDH and will remain in effect until the end of the - CDBG funding cycle or I choose to cancel this request via
written notification to the CDH. I understand that it is my responsibility to update and/or cancel this request under all circumstances, including my departure or terminated association with the below-listed applicant.

By
signing the E- Signature Authorization Form we certify that this agency will also comply with the following:

Non-discrimination
This organization will, through all possible means, ensure equal opportunity for all persons to receive services, to participate in the volunteer structure, and to be employ
ed regardless of age, handicap, national background, race, religion, or sex. An existing sectarian nature of the agency shall not suffer impairment under this agreement, but participation in religious observances, rituals or services will not be required as a condition of receiving food, services,
or shelter paid for by this grant.

Accountability
We commit this organization, if a grant is received, to provide all reports to the County as required; to expend monies only on eligible costs; to keep complete documentation (copies of
all canceled checks, invoices, receipts, etc.) on all expenditures for a minimum of three years; to spend all funds and
close out the program on the required date; to return any unused funds to the County to cooperate with monitoring or site visits, and; to provide complete documentation of expenses to the County, if requested, by the required date.

We affirm that all information in this application is true and correct to the best of our knowledge and that the applicant under our authority will execute its responsibility under the proposed contract and adhere to all other applicable rules and regulations to the fullest extent possible.

Non-collusion
This proposal is genuine, and not sham or collusive, nor made in the interest or in behalf of any person not herein named; the proposer has not directly induced or solicited any other proposer to put in a sham proposal, or any other person, firm or corporation to refrain from submitting a proposal; the proposer has not in any manner sought by collusion to secure for him/herself an advantage over any other proposer.

Applicant Information
Agency Name: Federal Tax ID No.:

Mailing Address: Phone No.:

Email Address: Fax No:

Authorized Signature
Print Name: Print Title:

Signature: Date:

Please send the signed copy of this one page agreement to:

San Bernardino County Community Development and Housing Department 215 North D Street, Suite 302, San Bernardino, CA 94215-0043 Attn: CDBG Application
14 12/11/2023
Pastor/CEO
Pastor/CEO
[email protected]
(909) 402-4095
(909) 402-4095
True Word Apostolic Church
(___) ___-____
(___) ___-____
2024
2024
2024
26-3785239
Lafayette Boyd, Ph.D.
2025
2025
2025
Dr. Lafayette Boyd, Ph.D.
3006 Macy Street, San Bernardino, CA 92407

1.1.d
Packet Pg. 29
Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO Public Services Program Application Fiscal Year –
CDBG Application Checklist
(Non-Profit Organizations Only)
Community-based organizations are required to include one copy of the items listed below. If you are not submitting these items at this time, please notify Community Development and Housing at (909) 501-0600 to make other arrangements. The following information is required before any contract or reimbursement can be completed.
o Summary of agency’s current year General Operating Budget o List of agency’s Board of Directors, including names and addresses o Proof of existing non-profit/tax-exempt status (Letters from the Federal Internal Revenue Service and State Franchise Tax Board) o Current certificate of insur
ance and amounts covered
o Organizational chart
o Minutes of last Board meeting
o Non- Profit agencies must be Registered in the System of Award Management (SAM) website.

Agency
cannot be funded if they
have been debarred in the past.
o Provide board minutes/letter that authorizes the executive director or program manager to run the project.

If your application is funded you will be required to provide a copy of your last audit and your Articles of Incorporation and Bylaws must be on file. 15 2024
2025

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Attachment: Application - True Word Apostolic Church (4305 : CDBG Project Prioritization Fiscal Year 2024-2025 - TIME AND PLACE FIXED TO

ITEM NO. 2

STAFF REPORT

DATE: FEBRUARY 6, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: MARIO SUAREZ, INTERIM DIRECTOR OF DEVELOPMENT

SERVICES
SUBJECT: TIME AND PLACE FIXED TO CONSIDER A PUBLIC HEARING TO

APPROVE AND ADOPT A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF COLTON UPDATING USER FEES FOR POLICE

DEPARTMENT/ADMINISTRATION, DEVELOPMENT

SERVICES/PLANNING, PUBLIC WORKS/ENGINEERING,
ELECTRIC UTILITY/ENGINEERING, RESOLUTION NO. R-04-23.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Adopt Resolution No. R-04-24, approving user fee updates for the Police Department/Administration Division, Development Services/Planning Division, Public Works/Engineering Division, and Electric Utility/Engineering Division.

BACKGROUND

The City entered into a professional services contract with NBS to conduct a User Fee Study for four departments: Police/Administration Division, Development Services/Planning Division, Public Works/Engineering Division, and Electric Utility/Engineering Division. The user fees levied by each department/division are outdated and need to reflect the current cost of services.

A comprehensive update to Planning fees was last conducted on July 19, 2016; Electric Utility fees were last updated on February 5, 2013 ; Police fees were last updated on June 7, 2016; and Public Works/Engineering fees were last updated on February 5, 2013.

The City’s main objectives for this update are to (1) ensure that e xisting fees do not exceed the cost of services, and (2) provide an opportunity for the City Council to re -align fee amounts to

1.2 Packet Pg. 31
Staff Report to the Mayor and City Council
User Fee Update
February 6, 2024

ensure cost recovery, to the extent feasible. The fees studied in the User Fee Study exclude development impact fees, utility ra tes, and any special tax assessments (e.g., Community Facilities Districts) which fall under different sets of statutory and regulatory requirements. The Study also excludes facility and equipment rental rates, as well as most fines and penalties imposed by the City for violations of its requirements or codes.

Methods of Analysis
NBS conducted the fee analysis in three phases with input from the respective department at each phase: Cost of service analysis, fee es tablishment and cost recovery evaluation. Following is a summary of the methodology (a complete overview is provided in the attached User Fee Study Report).

I. Cost of Service Analysis : This analysis examined direct and indirect labor costs for the services provided by each department. Direct costs include:
 Direct personnel costs – salaries, wages and benefits for personnel specifically involved in the provision of the services for which a fee is charged.  Direct non-personnel costs – discrete expenses attributable to a specific service, such as contractor costs, third-party charges, and materials used in the service or activity.

Indirect costs include:
 Indirect personnel costs – personnel costs supporting the provision of services and activities. These costs may include department/divisional management, administrative support, and staff involved in technical support activities.  Indirect non-personnel costs – expenses other than labor involved in the provision of services. In most cases, these costs are allocated across all services provided b y a department/division.
 Overhead costs – labor and non -labor expenses related to agency -wide support services. These costs include general administrative services such as City Manager, Finance, Human Resources, etc.

II. Fee Establishment: This task involves a range of considerations, including the following:
 Addition to and deletion of fees.
 Revisions to the structure of fees.
 Documentation of the tools used to calculate cost recovery.

III. Cost Recovery Evaluation: NBS compared the existing fee for each service or activity to the total cost of service. Possible outcomes included:
 Cost recovery rate of 0% - this signifies that there is currently no recovery of costs from fee revenues for the service.
 Cost recovery rate of 100% - this means that the fee currently recovers the full cost of service.

1.2 Packet Pg. 32
Staff Report to the Mayor and City Council
User Fee Update
February 6, 2024

 Cost recovery rate between 0% and 100% - this indicated partial recovery of the full cost of service through fees.
 Cost recovery rate greater than 100% - this means that the current fee exceeds the full cost of the service performed. User fees should not exceed the full cost of service.

NBS assisted staff with modeling the “recommended” or “target” level of cost recovery for each fee, established at either 100% or an amount less than the calculated full cost of ser vices.

Targets and recommendations on the part of each department were based on a variety of factors, including department revenue objectives, community values, level of demand for the services, and others. In general, the method of selecting an appropri ate cost recovery target includes consideration of the public and private benefits from the service in question, such as:
 To what degree does the public at large benefit from the service:
 To what degree does the individual or entity requesting, requiring, or causing the services benefit?

To ensure that the proposed fees are in sync with local and regional market pricing for similar services, NBS also conducted a Comparative Fee Survey with five cities – Fontana, Moreno Valley, Ontario, Pomona, and Rialto ( see Appendix B to User Fee Study). Fees were then adjusted based on cost recovery objectives for each department, and the context of local market pricing.

ISSUES/ANALYSIS

The final User Fee Study recommends an average cost recovery of 86 percent among the four departments. This compares to the current cost recovery percentage of 32%. If the new user fees are adopted as recommended, gross annual revenues are estimated to increase from $1,055,773 to $2,881,570.

The following is a summary of the user f ee recommendations for each department. The recommendations may be found on Exhibit A to the attached Resolution, and Appendices A.1 through A.4 to the final User Fee Study.

Development Services/Planning Division

The following table identifies a fully b urdened hourly rate of $293/hour, which is the basis for the cost of providing services. The total cost of providing services is $1.9 million per year, of which $538,000 is recommended for recovery through funding sources other than fees.

Fully Burdened Hourly Rates

1.2 Packet Pg. 33
Staff Report to the Mayor and City Council
User Fee Update
February 6, 2024

Cost Element

Long Range
Planning

Current Planning
Direct Services

Total
Labor $ 170,752 $ 451,353 $ 622,105
Recurring Non-Labor 80,153 211,871 292,024
Division-wide Overhead 136,921 361,927 498,848
Division Support Activities 150,770 398,534 549,304
Division Total $ 538,596 $ 1,423,685 $ 1,962,280
Fully Burdened Hourly Rate n/a $ 293
Reference: Direct Hours Only n/a 4,856

Overall, the Planning Division made minor revisions to the existing fee schedule. The following is a summary of the overall changes:

 42 fee categories were analyzed.
 Only 2 fee categories were unchanged; one fee category (Building Demolition Review) was reduced.
 No fees were requested for deletion.
 Fee categories were reorganized, or names of services modifi ed to create a more user-friendly fee structure.
 Eight (8) n ew fee categories are proposed (notated as “New” in Current Fee/Deposit column of Appendix A.1 of the Final Report), such as:
o Accessory dwelling unit permit
o Environmental – Mitigation Monitoring and Environmental Impact Report o Historic Preservation – Mills Act registration
o Street Vacation – Planning Commission Review

Currently, the Division is recovering approximately 47% of the total cost of providing services.

At full cost recovery, and at the same demand level for these services, the City would recover 92% of the cost of providing services. It should be noted that some services (e.g., general plan amendment, zone change, development agreement , etc.) are deposit -based services and include legal support. The minimum deposit is typically $10,000 and the services are typically governed by a Reimbursement Agreement between the City and the applicant.

Cost Recovery Outcomes

Fee
Category

Annual Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at
Full Cost
Recovery Fee

Annual Cost
Recovery
Surplus /
Deficit

Existing
Cost
Recovery
Percentage

Annual Estimated
Revenues at
Recommended
Cost Recovery Fee

Recommended
Cost Recovery
Percentage

1.2 Packet Pg. 34
Staff Report to the Mayor and City Council
User Fee Update
February 6, 2024

Planning Division $ 667,332 $ 1,430,888 $ (763,556) 47% $ 1,369,929 96%

Public Works/Engineering Division

The following table shows the Engineering Division’s estimated full cost of providing services on an annual basis and the fully burdened cost per hour developed for cost recovery purposes through fees for services.

Fully Burdened Hourly
Rate

As the table above shows, the total cost of providing services is approximately $1.7 million per year. However, the results of the cost -of-service analysis identified $1.1 million in costs for recovery fr om the City’s fees for service with the remaining $602,000 recommended for recovery through funding sources other than fees. All subsequent cost of service calculations at the individual fee level assumes a fully burdened hourly rate of $309 during normal business hours, and $330 if work is performed after business hours.

The following is a summary of the overall changes to the Engineering Division’s fee schedule:
 Deletion of fees that are no longer used or needed, such as:
o Environmental impact report review
 Reorganization of fee categories or clarification of fee names to create a more user - friendly fee structure, such as:
o Moving preliminary hydrology review, and tentative parcel map plan check under a new header titled Preliminary Development Review

1.2 Packet Pg. 35
Staff Report to the Mayor and City Council
User Fee Update
February 6, 2024

o Grouping all improvement plans, including signing & striping, signalization plans, landscaping plans as well as public & private on -site and off-site plans under one category.
o Revised tiers of cubic yards to be moved for grading plan check and inspection to better conform with typical project sizes.  Addition of new fee categories, notated as “New” in the Current Fee column of Appendix A.2., such as:
o Tentative tract map
o Traffic scoping agreements (preliminary traffic study) o Preliminary VMT
o Preliminary WQMP
o Stormwater NPDES plan check/inspection
o Traffic control inspection
o After business hours hourly billing rate

Currently, the Division is recovering approximately 23% of the total cost of providing services from fees. As Table 5 shows, the City collects approximately $224,000 per year in revenue at the current fee amounts. At full cost recovery and the same demand level for these services, the City would recover approximately $993,000.

Cost Recovery Outcomes

Electric Utility/Engineering Division

The following table identifies a fully burdened hourly rate of $279/hour, which is the basis for the cost of providing services. The total cost of providing services is $1.7 million per year.

Fully Burdened Hourly Rate

Cost Element

Direct Electric
Utility
Labor $ 508,359
Recurring Non-Labor 104,391
Division-wide Overhead 891,182

1.2 Packet Pg. 36
Staff Report to the Mayor and City Council
User Fee Update
February 6, 2024

Division Support Activities 234,750
Division Total $ 1,738,681
Fully Burdened Hourly Rate $ 279
Reference: Direct Hours Only 6,221
Overtime Hourly Rate $ 304

The Electric Utility/ Engineering Division has revised the existing fee schedule. Additionally, new service fees have been included to recover costs. The following fees have been revised:

 Service Reconnection Charge (during regular hours and other than regular working hours.
 Service Reconnection Charge when service is terminated at the pole or underground service location (during regular working hours and other than regular working hours.
 Turn-on Charge (during regular working hours)
 Electric Meter Test Fee

The following fees will be newly implemented:

 Residential Plan check fees
 Commercial Plan Check fees
 Additional plan review per hour
 Electric panel replacement and upgrade
 Meter tampering
 Production meter installation

Currently, the Division is recovering approximat ely 6% of the total cost of providing services from fees. The City collects approximately $15,000 per year in revenue at the current fee amounts. At full cost recovery and the same demand level for these services, the City would recover approximately $253,000.

Police Department/Administration Division

The following table identifies a fully burdened hourly rate for non -sworn of $121/hour and sworn of $295/hour, which is the basis for the cost of providing services. The total cost of providing services is 20 million per year.

1.2 Packet Pg. 37
Staff Report to the Mayor and City Council
User Fee Update
February 6, 2024

The following is a summary of the overall changes to the Police Department’s Administration Division fee schedule:
 Deletion of fees that are no longer used of needed, such as:
o VIN verification
o Postage fees
o Background check fee
o Film production fee
o Rental inspection fee
o Sergeant meetings and/or on-site inspections

 Reorganization of fee categories or clarification of fee names to create a more user - friendly fee structure.
 Addition of new fee categories, notated as “New” in the Current Fee column of Appendix A.4., such as:
o Animal apprehension fee – vicious/bite impound
o Animal removal
o Abatement of public nuisance
 Reinspection
 Public nuisance noticing – final notice
o Support of Development Services

1.2 Packet Pg. 38
Staff Report to the Mayor and City Council
User Fee Update
February 6, 2024

Currently, the Division is recovering approximately 27% of the total cost of providing services from fees. As the table shows, the City collects approximately $150,000 per year in revenue at the current fee amounts. At full cost recovery and the same demand level for these services, the City woul d recover approximately $558,000. While NBS provided a full cost recovery, the overall goal of many services within the Police Department is compliance. This is especially the case for many Code Compliance and Animal Services/Licensing actions. Staff belie ves that the safety, health, and welfare of the residents outweighs full cost recovery. These initial recommendations for adjusted fee amounts are projected to recover approximately 39% of the total costs of providing fee -related services or $216,000, assu ming the demand for services remains the same.

FISCAL IMPACTS

The potential revenue for cost recovery is estimated at $ 2,881,570 annually, an 86% increase, and will vary depending on the number and type of applications and services received.

Implementation of new and updated fees will occur within 30 days after adoption. Anticipated revenue adjustments for the remainder of the fiscal year will be included in the FY2023 -24 mid- year budget review and the FY2024 -25 budget will reflect a full year with the updated cost recovery revenues.

ALTERNATIVES

Provide alternative direction to staff.

ATTACHMENT

1. Attachment 1 - Draft CC Resolution No R-04-24

2. Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division

3. Attachment 2 Colton_Final Report_1.29.24

1.2 Packet Pg. 39
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23152.06020\32617662.1

RESOLUTION NO. R-04-24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COLTON, CALIFORNIA, APPROVING USER FEES UPDATES FOR

THE POLICE DEPARTMENT/ADMINSTRATION DIVISION,

DEVELOPMENT SERVICES /PLANNING DIVISION, PU BLIC

WORKS/ENGINEERING DIVISIO N, AND ELECTRI C

UTILITY/ENGINEERING DIVISION FEES FOR SERVICES

PERFORMED BY THE CITY, ESTABLISHING NEW FEES, AND

REPEALING SELECTED EXISTING FEES ADOPTED B Y
RESOLUTION NOS. R-05-13, R-48-16, AND. R-72-16.

WHEREAS, on February 5, 201 3, the City Council adopted Resoluti on No. R -05-13, which established an update and increase to the Citywide Master Fee Schedule, including Planning, Police, Public Works Engineering and Utility fees; and WHEREAS, on June 7, 2016, the City Council adopted Resolution No. R -48-16, which established an update and increase certain Police Fees; and WHEREAS, on July 19, 2016, the City Council adopted Resolution No. R -72-16, which established an update and increase certain Planning and Business License Fees; and WHEREAS, The User Fee Study was prepared for each City section including Police/Administration Division , Development Services / Plannin g Division, Public Works /Engineering Division and Electric Utility Engineering Division Fees to ensure t hat existing fees do not exceed the costs of service, and to provide an opportunity for the City Council to r e-align fee amounts with localized cost recovery policies; and
WHEREAS, the fees examined in the User Fee Study specifically exclude development impact fees, utility rates, and any special tax assessments which fall under a different set of statutory and procedural requirements from the body of user and regulatory fees analyzed in the Study. The Study also excludes facility and equipment rental rate s, as well as fines and penalties imposed by the City for violations of its requirements or codes; and

WHEREAS, the public hearing was noticed on January 6 and 11, 2024 for City Council

1.2.a
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Attachment: Attachment 1 - Draft CC Resolution No R-04-24 (4359 : User Fee Update) January 16, 2024 – Resolution No. R-04-24

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public hearing held on January 16, 2024, the item was continued to February 6, 2024 to complete public noticing and to receive public comments on the proposed User Fee Update.

WHEREAS, a public notice was posted on January 5, 2024, at City Hall located at 650 N.

La Cadena Drive, Colton, CA., 92324 and Development Services public notice board located at 659 N. La Cadena Drive, Colton, CA., 92324.

WHEREAS, on January 5, 2024, a copy of the Colton User Fee Study Updated was posted on the Home page of the City of Colton Website.

WHEREAS, The City Council hereby finds that, in accordance with the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines, the adoption of this resolution is exempt from CEQA pursuant to 15061(b)(3); and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

BE IT NOW THEREFORE , BE IT RESOLVED that the City Council of the City of Colton does hereby find, determine, and declare as follows:

SECTION 1. Adoption of Fees and Charges. The fees and charges set forth in Exhibit "A" attached hereto and incorporated herein by reference shall take effect and be in force according to the law.

SECTION 2. Supporting Evidence & User Fee Study. The adoption of this Resolution is based on all oral and written evidence prepared by and/ or presented to the City, including but not limited to, the User Fee Study, prepared for the City with input from all affected departments.

This study, which documents that all approved fees and charges do not exceed the cost to the City of providing noted services, is hereby accepted by the City Council.

SECTION 3. CEQA Findings. The City Council hereby finds that, in accordance with the California Environmental Quality Act (" CEQA") and the CEQA Guidelines, the adoption of this Resolution is exempt from CEQA pursuant to Section 15061(b)( 3).

SECTION 4. Effective Date of Resolution. The Mayor shall sign this Resolution and the City Clerk shall attest thereto, and thereafter this Resolution shall take effect immediately.

PASSED, APPROVED, AND ADOPTED this __day of February 2024.

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Attachment: Attachment 1 - Draft CC Resolution No R-04-24 (4359 : User Fee Update) January 16, 2024 – Resolution No. R-04-24

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City of Colton

______________________________
Frank J. Navarro, Mayor

ATTEST:

______________________________________
Stephanie M. Vargas, Deputy City Clerk

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Attachment: Attachment 1 - Draft CC Resolution No R-04-24 (4359 : User Fee Update)

Planning Division Fee Update

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update) Appendix A.1
City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services
1 Accessory Dwelling Unit Permit
Less than 750 s.f. flat NEW 500 $
750+ s.f. flat NEW 750 $
2 Addressing (including change of address) flat 95$ 200$ 3 Administrative Review flat 115$ 600$ 4 Annexation Processing deposit 10,000$ 10,000 $ 5 Appeal
Planning Commission Decision to City Council flat 700$ 1,500 $ Application Review Committee/Planning Director's
decision to Planning Commission flat 700$ 1,000 $ 6 Architectural and Site Plan Review
Minimum (including model home sales trailer or
modular) flat 550$ 1,100 $
Structure less than 500 s.f. flat 540$ 1,200$ Structure 500 s.f. to 14,999 s.f. flat 1,275$ 1,500$ Structure 15,000 s.f. to 100,000 s.f. flat 2,000$ 2,800$ Structure over 100,000 s.f. flat 3,000$ 3,500$ Single Family or Manufactured/Mobile Home Review flat 435$ 350 $ 7 Building Demolition Review
Residential flat 700$ 400 $
All Other flat 700$ 130 $
8 Business Occupancy Permit
Permit flat 293$ 400$
Waiver (“Clean & Show”/Business Within a Business) flat 21$ 150 $ 9 Commercial Cannabis Permit
Current Fee /
Deposit
Recommended
Fee/Deposit [4]
Fee
No. Fee Name Fee Unit/ Type
Exhibit-"A" of City Council Reso. No. R-04-24
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com 12/1/2023 Planning - COS, Page 1 of 5

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update) Appendix A.1
City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee /
Deposit
Recommended
Fee/Deposit [4]
Fee
No. Fee Name Fee Unit/ Type
Exhibit-"A" of City Council Reso. No. R-04-24
Payment 1
Application Completeness Review flat 2,714$ 2,714 $ Consensus Review/Ranking flat 3,000$ 3,000$ Zoning Verification Letter flat 179$ 179$ Payment 2
Interview Fee flat 1,600$ 1,600$
Payment 3
Live Scan/Background Fee flat 155$ 155$ Payment 4
Permit Issuance Fee flat 612$ 612 $ Appeal Fee flat 2,101$ 2,101 $
10 Code Amendment (Zoning Text or other Municipal
Code) deposit 10,000$ 10,000 $
11 Code Interpretation
Director flat 275$ 350$
Planning Commission flat 300$ 500$ 12 Use Permit
Conditional Use Permit (including adult-oriented
business) flat 3,100$ 3,372 $
Master Conditional Use Permit flat NEW 3,958$
Minor Conditional Use Permit flat 1,100$ 2,000$ 13 Copies
Paper flat See City Clerk See City Clerk
CD/DVD flat See City Clerk See City Clerk
Flash Drive flat See City Clerk See City Clerk
14 Development Agreement deposit 10,000$ 15,000 $ 15 Environmental
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com 12/1/2023 Planning - COS, Page 2 of 5

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Packet Pg. 45
Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update) Appendix A.1
City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee /
Deposit
Recommended
Fee/Deposit [4]
Fee
No. Fee Name Fee Unit/ Type
Exhibit-"A" of City Council Reso. No. R-04-24
Initial Study flat 10,000$ 2,346 $
ND/MND flat 10,000$ 3,518$
Exemption flat 10,000$ 600$
Mitigation Monitoring annual NEW 2,000$
Consultant Preparation actual cost Actual Cost Actual Cost 16 Fence Permit (Non-DRC)
Residential flat 22$ 75 $
All Other flat 22$ 125$
17 General Plan Amendment deposit 10,000$ 11,728 $ 18 General Plan Maintenance Fee % 1.25% of DAP
Application Fee

1.25% of DAP
Application Fee
19 General Plan Map flat See PW/GIS See PW/GIS
20 Historic Preservation
Certificate of Appropriateness (Minor) flat 35$ 806 $ Certificate of Appropriateness (Major) flat 190$ 1,026$ Certificate of Hardship flat 100$ 733$ Special Review of Potential Historic Resource flat No Charge 1,173$ Historic Preservation Amendment (e.g. Landmark
Designation) flat 1,200$ 2,492 $
Mills Act Registration flat NEW 2,492$
21 Home Occupancy Permit flat 44$ 220 $ 22 Preliminary Landscape & Irrigation Plan Review flat 253$ 220 $ 23 Legal Review actual cost Actual Cost Actual Cost
24 Maps - Computer Generated (Special Order through GIS flat See PW/GIS See PW/GIS NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com 12/1/2023 Planning - COS, Page 3 of 5

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update) Appendix A.1
City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee /
Deposit
Recommended
Fee/Deposit [4]
Fee
No. Fee Name Fee Unit/ Type
Exhibit-"A" of City Council Reso. No. R-04-24
25 Modification of Entitlement
Minor flat 140$ 300 $
No Public Hearing - ARC or PC flat 440$ 800$ With Public Hearing flat 693$ 1,500$ 26 Pre-Application Review (Informal Development
Consultation)
Distribution to DRC Members for Comment flat 400$ 800 $ 27 Zoning/Planning Inquiry
Application Inquiry - Planning Email Response flat No Charge No Charge 28 Public Notice (Newspaper Publication) flat 250$ 220 $ 29 Postage actual cost Actual Cost Actual Cost
30 Sign Design Review (Freeway Oriented and Electronic) flat 290$ 2,200 $ 31 Street Vacation - Planning Commission Review flat NEW 586 $ 32 Uniform Sign Program Review flat 400$ 1,466 $ 33 Sign Permit
Permanent flat 125$ 200 $
Temporary flat 25$ 75$
34 Specific Plan Amendment deposit 10,000$ 15,000 $ 35 Tentative Subdivision (Vesting or Non-Vesting Map)
Tentative Parcel Map flat 1,110$ 1,700 $ 5 to 29 Lots flat 1,934$ 2,500$
30 to 99 Lots flat 2,269$ 3,200 $
100+ Lots or PUD flat 2,740$ 3,800$
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com 12/1/2023 Planning - COS, Page 4 of 5

1.2.b
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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update) Appendix A.1
City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee /
Deposit
Recommended
Fee/Deposit [4]
Fee
No. Fee Name Fee Unit/ Type
Exhibit-"A" of City Council Reso. No. R-04-24
Lot Line Adjustment
Homeowner flat 282$ 150 $
All Other flat 282$ 440$
Lot Merger flat 368$ 1,200$
36 Time Extension of Entitlement
Planning Commission flat 300$ 953 $ Administrative flat 125$ 300$
37 Variance
Major flat 1,215$ 1,800 $
Minor Deviation flat 410$ 600$
38 Zone Change deposit 10,000$ 10,000 $
39 Zoning Confirmation letter flat 102$ 225 $ 40 Zoning Map actual cost Actual Cost Actual Cost
41 Tribal Consultation Process flat NEW 900 $
42 For services requested of City staff which have no fee listed in this fee schedule flat 130$ 293 $ TOTAL
[Notes]
[1] Cannabis fees recently adopted. NBS did not evaluate. [2] Plus cost of publication.
[3] Plus LAFCO fee.
[4] Additional fees may apply upon referral to other City Departments.

NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com 12/1/2023 Planning - COS, Page 5 of 5

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update)

Public Works
Engineering Division Fee Update

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update)

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update)

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update)

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update)

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update)

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update)

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update)

Police Administration Division Fee Update

1.2.b
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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update) City of Colton
Police Department - Administration Division - User Fee Study FY 23 Cost of Providing Activities and Services
I. Records Services
1 City Attorney Fees actual cost Actual Cost Actual Cost 2 Audio-Tape Reproduction flat 25$ 60$ 3 Booking Fee Reimbursement actual cost Actual Cost Actual Cost 4 Documentation of Police Calls
(Retrieval of Dispatch Logs) per request 0.25$ 20 $ 5 Concealed Weapons Permit
Initial Application per app 100$ 100$ Renewal per permit 25$ 25$
6 Crime Analysis Report each No charge. See
online. No charge. See online.
7F a l s e A l a r m
More than two within any 30 day period flat 229$ 250$ More than four within any 90 day period flat 229$ 250$ More than six within any 180 day period flat 229$ 250$ More than either within any 365 day period flat 229$ 250$ 8 Fingerprinting
City Processing Fee flat 20$ 60$
Department of Justice Fee - Payable to DOJ actual cost Actual Cost Actual Cost County Sheriff actual cost Actual Cost Actual Cost
9 Immigration / Emigration Letter each 65$ 121$ 10 Disruptive Party / Gathering Response
(Public Safety Service Fee) actual cost Actual Cost Actual Cost 11 Permit Application Fee (i.e. Dance, Massage
Technicians, Pawnbrokers, Solicitors)
Application per app 489$ 302$
Recommended Fee Fee
No. Fee Name Fee Unit/ Type Current Fee /
Deposit
Exhibit-"A" of City Council Reso. No. R-04-24
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com 12/1/2023 Police - COS, Page 1 of 4

1.2.b
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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update) City of Colton
Police Department - Administration Division - User Fee Study FY 23 Cost of Providing Activities and Services
Recommended Fee Fee
No. Fee Name Fee Unit/ Type Current Fee /
Deposit
Exhibit-"A" of City Council Reso. No. R-04-24
Renewal per permit 489$ 181$
12 Photographs per request 25$ 30$ 13 Police Service Fee for Repeat Minor Curfew and
Loitering Violators
set by Muni
Code
Set by Muni
Code Set by Muni Code
14 Tow Release Fees
Standard Tow flat 96$ 150$
VITEP Tow flat 224$ 250$
30-day Tow flat 224$ 250$
Stolen Vehicle Recovery flat No Charge No Charge
15 Reports (including Crime Reports, Code Enforcement
Reports, Traffic Collision Reports per page 0.25$ 30 $ 16 Repossession Release Fee flat 15$ 20$ 17 Subpoena Fee
Records Subpoena per request $ 15 $ 15 Deposition Subpoena per day $ 150
$275 per day as
deposit in advance,
plus actual cost.
18 Body Worn Camera / 911 Call (Video-Tape
Reproduction) flat 25$ 121 $
19 Emergency Response Cost Recovery (DUI) actual cost Actual Cost Actual Cost 20 Fireworks Violation
1st in 24 months flat $ 3,000 $ 3,000 2nd in 24 months flat $ 5,000 $ 5,000 21 Citation Sign Off
City of Colton each 25$ 25 $
Other Agency each 40$ 74 $
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com 12/1/2023 Police - COS, Page 2 of 4

1.2.b
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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update) City of Colton
Police Department - Administration Division - User Fee Study FY 23 Cost of Providing Activities and Services
Recommended Fee Fee
No. Fee Name Fee Unit/ Type Current Fee /
Deposit
Exhibit-"A" of City Council Reso. No. R-04-24
II. Animal Control Fees
22 Animal Apprehension Fee
Stray each 65$ 100 $
Vicious/Bite Impound each NEW 241 $
23 Animal Licensing Fee
For dogs spayed/neutered each 9$ 20 $ For dogs not spayed/neutered each 50$ 100 $ Senior License - spayed/neutered each 4.50$ 10 $ Senior License - not spayed/neutered each 25$ 100 $ Service Animals each No Charge No Charge
Duplicate License Fee each 5$ 5 $ 24 Animal Pick-up Fee (Alive) each 60$ 181 $ 25 Animal Trap Rental
Trap Rental Processing Fee each 20$ 20 $ Trap Rental Deposit - Refundable deposit $ 60 $ 60 26 Animal Quarantine
Home Quarantine each No Charge No Charge
Shelter Quarantine
Stray each No Charge No Charge
Owned each 50$ No Charge
27 Animal Related Citation see Muni Code See Muni Code See Muni Code 28 Animal Removal (Dead Animal) each NEW 181 $
29 Yard Check each No Charge No Charge
III. Code Compliance Fees
30 Abatement of Public Nuisance
Initial Response flat 118$ 121 $
Follow up Response/Citation flat 79$ 121 $ NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com 12/1/2023 Police - COS, Page 3 of 4

1.2.b
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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update) City of Colton
Police Department - Administration Division - User Fee Study FY 23 Cost of Providing Activities and Services
Recommended Fee Fee
No. Fee Name Fee Unit/ Type Current Fee /
Deposit
Exhibit-"A" of City Council Reso. No. R-04-24
Reinspection
per
occurrence/per
hr (min 1 hr)
NEW 121 $
Filing Pendency flat 158$ 181 $
Public Nuisance Noticing - Final Notice per occurrence NEW 181 $ CEHAAB Preparation flat 1,036$ 1,207 $ Warrant Preparation flat 799$ 181 $ Contractor Fees actual cost Actual Cost Actual Cost
31 Lien
Place Lien flat Actual Cost Actual Cost
Remove Lien flat Actual Cost Actual Cost
32 City Attorney Fees actual cost Actual Cost Actual Cost 33 For services requested of City staff which have no fee listed in this fee schedule
Non Sworn
During Business Hours flat 40$ 121 $ After Business Hours flat 40$ 134 $ Sworn
During Business Hours flat 40$ 295 $ After Business Hours flat 40$ 328 $ TOTAL
[Notes]
[1] Sourced from: "Police Department Fees as of 051222.xlsx" provided by City [2] Plus City Attorney Actual Cost
[3] NBS did not evaluate.
[4] Fee set by Penal Code 12054(a). NBS did not evaluate. [5] Fine/penalty set by Muni Code. NBS did not evaluate. [6] Fee set by Government Code 41612.
[7] Per Evidence Code 1563 (6)
[8] Per Government Code 68096.1/68097.2
[9] Per Government Code 53150
[10] Plus cost of tow
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com 12/1/2023 Police - COS, Page 4 of 4

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Attachment: Exhibit - A_of Reso No. R-04-24_User Fees by Department-Division (4359 : User Fee Update)

nbsgov.com
Prepared by:

Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
Final Report for:

User Fee Study
January 2 9, 202 4

1.2.c
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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

City of Colton
User Fee Study 2

TABLE OF CONTENTS

Executive Summary ................................. ................................................... .................... 4

1.1 Findings ...................................... ............................................................................. 4

1.2 Report Format ................................. ........................................................................ 5 Introduction and Fundamentals ........................................................................ .............. 6

2.1 Scope of Study ................................ ......................................................................... 6

2.2 Methods of Analysis ........................... ..................................................................... 6 Planning Division .................................................................................... ...................... 12

3.1 Cost of Service Analysis ...................... ................................................................... 12

3.2 Fee Establishment ............................. .................................................................... 13

3.3 Cost Recovery Evaluation ...................... ................................................................ 13 Engineering Division ................................................................................. .................... 15

4.1 Cost of Service Analysis ...................... ................................................................... 15

4.2 Fee Establishment ............................. .................................................................... 16

4.3 Cost Recovery Evaluation ...................... ................................................................ 16 Electric Utility – Engineering Division .............................................................. .............. 17

5.1 Cost of Service Analysis ...................... ................................................................... 17

5.2 Fee Establishment ............................. .................................................................... 17

5.3 Cost Recovery Evaluation ...................... ................................................................ 18 Police Department – Administration Division .......................................................... ...... 19

6.1 Cost of Service Analysis ...................... ................................................................... 19

6.2 Fee Establishment ............................. .................................................................... 19

6.3 Cost Recovery Evaluation ...................... ................................................................ 20

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Conclusion ........................................................................................... ......................... 21

Appendices
Cost of Service Analysis (Fee Tables) Appendix A
Comparative Fee Survey Appendix B

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EXECUTIVE SUMMARY
NBS performed a User Fee Study (Study) for the City of Colton . The purpose of this report is to present the findings and recommendations of the various fee ana lyses performed as part of the Study and provide th e City with the information needed to update and esta blish user and regulatory fees for service. Through out the process, the Study afforded much effort to ensu re that not only are the fees and charges reasonabl e and equitable, but that they also meet industry standar ds and uphold the statutory requirements of the Sta te of California.

California cities, counties, and special districts may impose user and regulatory fees for services an d activities they provide through provisions set fort h in the State Constitution, Article XIII C § 1. Un der this legal framework, a fee may not exceed the reasonabl e cost of providing the service or performing the activity. For a fee to qualify as such, it must rel ate to a service or activity performed at the reque st of an individual or entity upon which the fee is imposed, or their actions specifically cause the local gove rnment agency to perform additional activities. In this in stance, the service or underlying action causing th e local agency to perform the service is either discretiona ry and/or is subject to regulation. As a discretion ary service or regulatory activity, the user fees and r egulatory fees considered in this Study fall outsid e of the definition and statutory requirement to impose gene ral taxes, special taxes, and fees as a result of p roperty ownership.

The City’s main reason for conducting this Study wa s twofold: (1) first, to ensure that existing fees do not exceed the costs of service, and (2) second, to pro vide an opportunity for the City Council to re-alig n fee amounts with localized cost recovery policies.

1.1 Findings
This Study examined user and regulatory fees manage d by the City’s Planning Division, Engineering Divi sion, Electric Utility – Engineering Division, and Police Department – Administration Division. The Study id entified an estimated $3.2 million in eligible costs for rec overy from fees for service compared to approximate ly $1.1 million the City is currently collecting each year from fees. The following table provides a summ ary of the Study’s results :

Table 1. Report Summary

As shown in Table 1 above, the City is recovering a pproximately 33% of the costs associated with provi ding user and regulatory fee-related services. Should Co uncil adopt fees at 100% of the full cost recovery amounts determined by this Study, an additional $2. 2 million in costs could be recovered.

Fee Category
Annual
Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at Full
Cost Recovery
Fee
Annual Cost
Recovery
Surplus /
Deficit
Existing
Cost
Recovery
Percentage
Annual Estimated
Revenues at
Recommended
Cost Recovery Fee
Recommended
Cost Recovery
Percentage
Planning Division 667,332 $ 1,430,888 $ (763,556) $ 47% 1,320,221 $ 92% Engineering Division 223,666 $ 992,535 $ (768,869) $ 23% 992,535 $ 100% Electric Utility - Engineering Division 14,560 $ 252,593 $ (238,033) $ 6% 252,59 3 $ 100% Police Department - Administration Division 150,214 $ 557,755 $ (407,541) $ 27% 21 6,737 $ 39% Total 1,055,773 $ 3,233,772 $ (2,178,000) $ 33% 2,782,086 $ 86%

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However, Section 2.2.3 later explains, there may be other local policy considerations that support ado pting fees at less than the calculated full cost recovery amount. Since this element of the Study is subject ive, NBS provided the maximum potential of fee amounts at 10 0% full cost recovery for the City to consider. As such, City staff provided initial recommended fee amounts for Council’s consideration. If Council elects to adopt fee levels at the staff’s initial recommendations, an additional $1.7 million in costs could be recove red, for an 86% cost recovery outcome for services provided. Once City Council has reviewed and evaluated the results of the Study, the City can set fees at appr opriate cost recovery levels according to local pol icy goals and considerations.

1.2 Report Format
This report documents the analytical methods and da ta sources used in the Study, presents findings regarding current levels of cost recovery achieved from user and regulatory fees, discusses recommende d fee amounts, and provides a comparative survey of f ees to neighboring agencies for similar services. T he report is organized into the following sections:
 Section 2 - Outlines the general framework, approac h, and methodology of the Fee Study.  Sections 3 through 6 - Discusses the results of the cost of service analysis performed by division and/or fee program. The analysis includes: (1) full y burdened hourly rate(s); (2) calculation of the costs of providing service; (3) the cost recove ry performance of each fee category; and, (4) the staff-recommended fees for providing services.
 Section 7 - Presents the conclusions of the analysi s provided in the preceding sections.  Appendices to this report - Include additional deta ils of the analysis performed and a comparison of the fees imposed by neighboring agenc ies for similar services.

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INTRODUCTION AND FUNDAMENTALS

2.1 Scope of Study
The following is a summary of the fees evaluated du ring the Study:
 Planning Division
 Engineering Division
 Electric Utility – Engineering Division
 Police Department - Administration Division
The fees examined in this report specifically exclu de development impact fees, utility rates, and any special tax assessments which fall under a different set of statutory and procedural requirements from the bod y of user and regulatory fees analyzed in this Study. Th e Study also excludes facility and equipment rental rates, as well as most fines and penalties imposed by the City for violations of its requirements or codes. 1

2.2 Methods of Analysis
Three phases of analysis were completed for each Ci ty section studied:

2.2.1 COST OF SERVICE ANALYSIS
This cost of service analysis is a quantitative eff ort that compiles the full cost of providing govern mental services and activities. There are two primary type s of costs considered: direct and indirect costs. D irect costs are those that specifically relate to an acti vity or service, including the real-time provision of the service. Indirect costs are those that support the provision of services in general but cannot be dire ctly or easily assigned to a singular activity or service.

Direct Costs:
 Direct personnel costs – Salary, wages and benefits expenses for personnel specifically involved in the provision of services and activities to the public.  Direct non-personnel costs – Discrete expenses attributable to a specific servi ce or activity performed, such as contractor costs, third-party ch arges, and materials used in the service or activity.

1 According to the California Constitution Article XIII C § 1 (e) (4) and (5), the City is not limited to the costs of service when charging for entrance to or use of government property, or when imposing fines and penalties.

Cost of
Service
Analysis
Fee
Establishment
Cost Recovery
Evaluation

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Indirect Costs:
 Indirect personnel costs – Personnel expenses supporting the provision of ser vices and activities. This can include line supervision and d epartmental/divisional management, administrative support within a department, and sta ff involved in technical support activities related to the direct services provided to the publ ic.  Indirect non-personnel costs – Expenses other than labor involved in the provisi on of services.

In most cases, these costs are allocated across all services provided by a department/division, rather than directly assigned to individual fee/rat e categories.  Overhead costs – These are expenses, both labor and non-labor, re lated to agency-wide support services. Support services include general administ rative services such as City Manager, Finance, Human Resources, etc. The amount of costs attributa ble to the divisions included in this Study were sourced from the City’s operating budget.

All cost components in this Study use annual (or an nualized) figures, representing a twelve-month cycl e of expenses incurred by each division in the provision of all services and activities City-wide.

Nearly all the fees reviewed in this Study require specific actions on the part of City staff to provi de the service or conduct the activity. Since labor is the primary underlying factor in these activities, the Study expresses the full cost of service as a fully burde ned cost per labor hour. NBS calculated a composite , fully burdened, hourly rate for each division included in the Study. This rate serves as the basis for furth er quantifying the average full cost of providing indi vidual services and activities. Determining the ful ly burdened labor rate for each division requires two data sets: (1) the full costs of service, and (2) t he number of staff hours available to perform those services. NBS derived the hours available based on the compl ete list of all City employees and/or available service hours of its contracted professionals (where appli cable).

The City supplied NBS with the total number of paid labor hours for each employee involved in the deli very of services included in this Study. These available hours represent the amount of productive time avai lable to provide both fee-recoverable and non-fee recover able services and activities. Available labor hours divided into the annual full costs of service equal the composite, fully burdened, labor rate. Some ag encies may also use the resulting rates for purposes other than setting fees, such as calculating the full co st of general services or structuring a cost recovery agr eement with another agency or third party.

NBS also assisted the City in estimating the staff time for the services and activities listed in the City’s fee schedule. The City does not systematically track th e service time of activities for all divisions or a ll individual fee-level services provided. therefore, NBS relied on interviews and questionnaires to develop the nec essary data sets of estimated labor time. In many cases, t he City provided estimates of the average amount of time (in minutes and hours) it took to complete a typica l service or activity considered on a per-occurrenc e basis.

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It should be noted that the development of these ti me estimates was not a one-step process but require d careful review by both NBS and division managers to assess the reasonableness of such estimates. Based on the results of this review, the estimated labor tim e reasonably reflects the average service level pro vided by the City. Finally, the fully burdened labor rate(s) calculated in earlier steps were applied at the in dividual fee level time estimates, yielding an average total cos t of providing each fee for service or activity. Th e graphic below provides a visual representation of the steps discussed in this section.

2.2.2 FEE ESTABLISHMENT
The fee establishment process includes a range of c onsiderations, including the following:
 Addition to and deletion of fees – The Study provided each division with the opportu nity to propose additions and deletions to their current fe e schedules, as well as re-name, re-organize, and clarify which fees were to be imposed. Many of these fee revisions allowed for better adherence to current practices, as well as the impr ovement in the calculation, application, and collection of the fees owed by an individual. Some additions to the fee schedule were simply the identification of existing services or activities p erformed by City staff for which no fee is currently charged.
 Revision to the structure of fees – In most cases, the focus was to re-align the fee amount to match the costs of service and leave the current st ructure of fees unchanged. However, in several cases, fee categories and fee names had to be simplified or re-structured to increase the likelihood of full cost recovery or to enhance the fairness of how the fee is applied to the various types of fee payers.
 Documentation of the tools used to calculate specia l cost recovery – The City’s fee schedule should include the list of fully burdened rates dev eloped by the Study. Documenting these rates in the fee schedule provides an opportunity for the City Council to approve rates for cost Available Work
Hours
Total Time on
Task per Fee
Maximum
(100% Cost
Recovery)
Fee
Amount
Labor
Costs
Operating
Costs
Overhead
Costs
[
]
Step 1:

Calculate
Fully
Burdened
Hourly
Rate
Step 2:

Cost of
Service
Analysis

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recovery under a “time and materials” approach. It also provides clear publication of those rates so that all fee payers can readily reference the ba sis of any fee amounts. The fee schedule should provide language that supports special forms of cost recovery for activities and services not included in the adopted master fee schedule. In these rare instances, published rates are used to estimate a flat fee or bill on an hourly ba sis, which is at the department director’s discretion.

2.2.3 COST RECOVERY EVALUATION
The NBS fee model compares the existing fee for eac h service or activity to the average total cost of service quantified through this analysis. Here are the poss ible outcomes of the fee analysis:
 Cost recovery rate of 0% - This signifies that ther e is currently no current recovery of costs from fee revenues (or insufficient information available for evaluation).  Cost recovery rate of 100% - This means that the fe e currently recovers the full cost of service.  Cost recovery rate between 0% and 100% - This indic ates partial recovery of the full cost of service through fees.
 Cost recovery rate greater than 100% - This means t hat the fee exceeds the full cost of service.

User fees and regulatory fees should not exceed the full cost of service.

In all cases, the cost recovery rate achieved by a fee should not be greater than 100%. In most cases, imposing a fee above this threshold could change th e definition of the charge from a cost of service b ased fee to a tax which has other procedural requirement s, such as ballot protest or voter approval.

NBS assisted with modeling the “recommended” or “ta rget” level of cost recovery for each fee, establis hed at either 100% or any amount less than the calculat ed full cost of service. Targets and recommendation s reflect discretion on the part of the agency based on a variety of factors, such as existing City poli cies and agency-wide or departmental revenue objectives, eco nomic goals, community values, market conditions, level of demand, and others.

A general method of selecting an appropriate cost r ecovery target is to consider the public and privat e benefits of the service or activity in question, su ch as:
 To what degree does the public at large benefit fro m the service?  To what degree does the individual or entity reques ting, requiring, or causing the service benefit?
When a service or activity benefits the public at l arge, there is generally little to no recommended f ee amount (i.e., 0% cost recovery), reinforcing the fa ct that a service which truly benefits the public i s best funded by general resources of the City, such as re venues from the General Fund (e.g., taxes). Convers ely, when a service or activity wholly benefits an indiv idual or entity, the cost recovery is generally clo ser to or equal to 100% of cost recovery from fees collected from the individual or entity.

In some cases, a strict public-versus-private benef it judgment may not be sufficient to finalize a cos t recovery target. Any of the following factors and c onsiderations may influence or supplement the publi c- versus-private benefit perception of a service or a ctivity:

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 If optimizing revenue potential is an overriding go al, is it feasible to recover the full cost of service?
 Will increasing fees result in non-compliance or pu blic safety problems?  Are there desired behaviors or modifications to beh aviors of the service population helped or hindered through the degree of pricing for the acti vities?  Does current demand for services support a fee incr ease without adverse impact to the community served or current revenue levels? In othe r words, would fee increases have the unintended consequence of driving away the populati on served?  Is there a good policy basis for differentiating be tween the type of user (e.g., residents vs. non- residents, residential vs. commercial, non-profit e ntities, and business entities)?  Are there broader City objectives that merit a less than full cost recovery target from fees, such as economic development goals and local social valu es? NBS provided the cost of service calculation based on 100% full cost recovery and the framework for th e City’s use to adjust the amount of cost recovery in accordance with its broader goals as they pertain to code compliance, cost recovery, economic development, an d social values.

2.2.4 COMPARATIVE FEE SURVEY
Appendix B presents the results of the Comparative Fee Survey for the City. Policy makers often reques t a comparison of their jurisdictional fees to those of surrounding or similar communities. The purpose of a comparison is to provide a sense of the local marke t pricing for services, and to use that information to gauge the impact of recommendations for fee adjustm ents.

In this effort, NBS worked with the City to choose five comparative agencies – Fontana, Moreno Valley, Ontario, Pomona, and Rialto. It is important to kee p the following in mind when interpreting the gener al approach to, and use of, comparative survey data:
 Comparative surveys do not provide information abou t cost recovery policies or procedures inherent in each comparison agency.
 A “market-based” decision to price services below t he full cost of service calculation is the same as deciding to subsidize that service.
 Comparative agencies may or may not base their fee amounts on the estimated and reasonable cost of providing services. NBS did not perform the same level of analysis of the comparative agencies’ fees.
 The results of comparative fee surveys are often no n-conclusive for many fee categories.

Comparison agencies typically use varied terminolog y for the provision of similar services.

NBS made every reasonable attempt to source each co mparison agency’s fee schedule from their respectiv e websites and compile a comparison of fee categories and amounts for the most readily comparable fee items that match the City’s existing fee structure.

2.2.5 DATA SOURCES
The following data sources were used to support the cost of service analysis and fee establishment pha ses of this Study:
 The City’s Adopted Budget for Fiscal Year 2022-23

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 A complete list of all City personnel, salary/wage rates, regular hours, paid benefits, and paid leave amounts
 Prevailing fee schedules
 Annual workload data provided by each division and/ or fee program evaluated in the Study The City’s adopted budget serves as an important so urce of information that affects the cost of servic e results. NBS did not audit or validate the City’s f inancial documents and budget practices, nor was th e cost information adjusted to reflect different levels of service or any specific, targeted performance benc hmarks.

This Study accepts the City’s budget as a legislati vely adopted directive describing the most appropri ate and reasonable level of City spending. NBS consultants accept the City Council’s deliberative process and the City’s budget plan and further assert that through this legislative process, the City has yielded a re asonable and valid expenditure plan to use in setting cost-b ased fees.

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PLANNING DIVISION
The Planning Division is responsible for providing advice, review, and approval or recommendations on development proposals, to ensure high-quality devel opment that promotes Colton’s interests as defined in the General Plan, Zoning Ordinance and Specific Pla ns. Additionally, the Division provides support to the City Council, Planning Commission, and Historic Preserva tion Commission, and is responsible for updating an d administering development standards, land use codes and policies.

3.1 Cost of Service Analysis
The following table shows the Planning Division’s e stimated full cost of providing services on an annu al basis and the fully burdened cost per hour developed for cost recovery purposes through fees for services.

Table 2. Fully Burdened Hourly Rate

As the table above shows, the total cost of providi ng services is approximately $1.9 million per year.

However, the results of the cost of service analysi s identified $1.4 million in costs for recovery fro m the City’s fees for service with the remaining $538,000 recommended for recovery through funding sources other than fees. All subsequent cost of service cal culations at the individual fee level assume a full y burdened hourly rate of $293 .

Based on interviews with Division staff, the analys is segregated the total cost of services into two p rimary services categories: (1) Long Range Planning Activi ties; and, (2) Current Planning Direct Services. In order to clarify the underlying costs and assumptions used t o calculate the fully burdened hourly rate, here is a summary of the descriptions for each cost category:
 Long Range Planning – Planning staff supports the ongoing maintenance and cyclical update of the City’s General Plan and local Zoning Ordinances. These costs are considered non-recoverable from fees, but rather as part of a separate “Long-R ange Planning” or “General Plan Maintenance” surcharge on top of relevant planning and building permits.  Current Planning Direct Services – The Division’s responsibilities are comprised mostl y of development review and approval; therefore, 100% of these costs are recoverable from its routine fees for service.

Cost Element Long Range
Planning
Current Planning
Direct Services Total
Labor 170,752 $ 451,353 $ 622 ,105 $ Recurring Non-Labor 80,153 211,871 292,024 Division-wide Overhead 136,921 361,927 498,848 Division Support Activities 150,770 39 8,534 549,304 Division Total 538,596 $ 1,423,685 $ 1,962,280 $ Fully Burdened Hourly Rate n/a $ 293 n/a 4,856 Reference: Direct Hours Only

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The fully burdened hourly rate involves significant analytical and policy-related decisions regarding the inclusion of categorized activity costs. The decisi on to either include or exclude certain costs towar d recovery in fees for service stems from the basic f ee setting parameters set forth by industry standar d fee calculation methods and the California State Consti tution. State statutes require that any new fee tha t is levied or any existing fee that is increased should not exceed the estimated amount required to provid e the service for which the charge is levied.

3.2 Fee Establishment
Overall, the Planning Division made minor revisions to the existing fee schedule. The following is a s ummary of the overall changes:
 No fees were requested for deletion.
 Reorganization of fee categories or clarification o f fee names to create a more user-friendly fee structure, such as:
o Architectural and site plan review – Minimum (inclu ding model home sales trailer or modular)
o Conditional use permit (including adult-oriented bu siness permit) o Minor or temporary conditional use permit
o Fence permit split into two fee payor categories: r esidential and all other o Lot line adjustment split into two fee payor catego ries: homeowner and all other  Addition of new fee categories, notated as “New” in the Current Fee / Deposit column of Appendix A.1., such as:
o Accessory dwelling unit permit
o Master conditional use permit
o Environmental – mitigation monitoring and EIR
o Historic preservation – Mills Act registration
o Street vacation – Planning Commission review

3.3 Cost Recovery Evaluation
Appendix A.1 presents the results of the detailed c ost recovery analysis of fees for the City’s Planni ng Division. In the Appendix, the “Cost of Service per Activity” column establishes the maximum adoptable fee amount for the corresponding service identified in the “Fee Name” list.

Currently, the Division is recovering approximately 47% of the total cost of providing services from f ees. The City collects approximately $667,000 per year in re venue at the current fee amounts. At full cost reco very and the same demand level for these services, the C ity would recover approximately $1.4 million.

Table 3. Cost Recovery Outcomes

Fee Category
Annual
Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at
Full Cost
Recovery Fee
Annual Cost
Recovery
Surplus /
Deficit
Existing
Cost
Recovery
Percentage
Annual Estimated
Revenues at
Recommended
Cost Recovery Fee
Recommended
Cost Recovery
Percentage
Planning Division 667,332 $ 1,430,888 $ (763,556) $ 47% 1,320,221 $ 92%

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NBS provided a full cost of service evaluation and the framework for considering fees, while the City determined the appropriate cost recovery levels at or below full cost amounts.

The “Recommended Fee / Deposit” column in Appendix A.1 displays the City staff’s initial recommended f ee amounts. These initial recommendations for adjusted fee amounts are projected to recover approximately 92% of the total costs of providing fee-related ser vices, assuming the demand for services remains the same.

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ENGINEERING DIVISION
The Engineering Division is responsible for the con struction of all improvements occurring in public r ights- of-way or easements. Staff reviews and provides inp ut for all development projects and checks all maps and improvement plans for conformance with regulations. Staff also issues all permits and inspects all construction within the public rights-of-way. Respo nsiveness to its residential, commercial and indust rial communities is a priority, as well as a total commi tment to customer service.

4.1 Cost of Service Analysis
The following table shows the Engineering Division’ s estimated full cost of providing services on an a nnual basis and the fully burdened cost per hour develope d for cost recovery purposes through fees for servi ces.

Table 4. Fully Burdened Hourly Rate

As the table above shows, the total cost of providi ng services is approximately $1.7 million per year.

However, the results of the cost of service analysi s identified $1.1 million in costs for recovery fro m the City’s fees for service with the remaining $602,000 recomm ended for recovery through funding sources other th an fees. All subsequent cost of service calculations a t the individual fee level assume a fully burdened hourly rate of $309 during normal business hours, and $330 if work is performed after business hours. The over time rate was calculated using 1.5 times salary only lab or costs, plus all other eligible costs divided by direct hours.

Based on interviews with Division staff, the analys is segregated the total cost of services into two p rimary services categories: (1) CIP Activities; and, (2) D irect Engineering Services. In order to clarify the underlying costs and assumptions used to calculate the fully b urdened hourly rate, here is a summary of the descriptions for each cost category:
 CIP – Activities associated with managing City records, i ncluding capital improvement projects (CIP). These costs do not apply toward recovery fro m Engineering fees.  Direct Engineering – The Division’s responsibilities are comprised mostl y of development review and approval; therefore, 100% of these costs are re coverable from its routine fees for service.

The fully burdened hourly rate involves significant analytical and policy-related decisions regarding the inclusion of categorized activity costs. The decisi on to either include or exclude certain costs towar d recovery in fees for service stems from the basic f ee setting parameters set forth by industry standar d fee Cost Element CIP Direct
Engineering Total
Labor 155,603 $ 234,663 $ 390 ,266 $ Recurring Non-Labor 10,443 143,542 153,986 Division-wide Overhead 246,700 372,047 618,747 Division Support Activities 189,460 34 4,383 533,842 Division Total 602,206 $ 1,094,635 $ 1,696,841 $ Fully Burdened Hourly Rate n/a $ 309 n/a 3,545
Overtime Hourly Rate n/a 330 $
Reference: Direct Hours Only

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calculation methods and the California State Consti tution. State statutes require that any new fee tha t is levied or any existing fee that is increased should not exceed the estimated amount required to provid e the service for which the charge is levied.

4.2 Fee Establishment
The following is a summary of the overall changes t o the Engineering Division’s fee schedule:
 Deletion of fees that are no longer used or needed, such as environmental impact report review  Reorganization of fee categories or clarification o f fee names to create a more user-friendly fee structure, such as:
o Moving preliminary hydrology review, and tentative parcel map plan check under a new header titled Preliminary Development Review
o Grouping all improvement plans, including signing & striping, signalization plans, landscaping plans as well as public & private on-si te and off-site plans under one category.
o Revised tiers of cubic yards to be moved for gradin g plan check and inspection to better conform with typical project sizes.
 Addition of new fee categories, notated as “New” in the Current Fee column of Appendix A.2., such as:
o Tentative tract map
o Traffic scoping agreements (preliminary traffic stu dy) o Preliminary VMT
o Preliminary WQMP
o Stormwater NPDES plan check/inspection
o Traffic control inspection
o After business hours hourly billing rate

4.3 Cost Recovery Evaluation
Appendix A.2 presents the results of the detailed c ost recovery analysis of fees for the City’s Engine ering Division. In the Appendix, the “Cost of Service per Activity” column establishes the maximum adoptable fee amount for the corresponding service identified in the “Fee Name” list.

Currently, the Division is recovering approximately 23% of the total cost of providing services from f ees. As Table 5 shows, the City collects approximately $224 ,000 per year in revenue at the current fee amounts . At full cost recovery and the same demand level for these s ervices, the City would recover approximately $993, 000.

Table 5. Cost Recovery Outcomes

NBS provided a full cost of service evaluation and the framework for considering fees, while the City determined the appropriate cost recovery levels at or below full cost amounts.

Fee Category
Annual
Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at Full
Cost Recovery
Fee
Annual Cost
Recovery
Surplus /
Deficit
Existing
Cost
Recovery
Percentage
Annual Estimated
Revenues at
Recommended
Cost Recovery Fee
Recommended
Cost Recovery
Percentage
Engineering Division 223,666 $ 992,535 $ (768,869) $ 23% 992,535 $ 100%

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User Fee Study 17
ELECTRIC UTILITY – ENGINEERING DIVISION
Colton’s Electric Utility was created to provide qu ality, reliable service to residential and business customers within the city. The Engineering Division of Electr ic Utility provides plan check and inspection servi ces to builders, developers and customers requiring the El ectric Department’s services or relocations.

5.1 Cost of Service Analysis
The following table shows the Electric Utility - En gineering Division’s estimated full cost of providi ng services on an annual basis and the fully burdened cost per hour developed for cost recovery purposes through f ees for services.

Table 6. Fully Burdened Hourly Rate

As the table above shows, the total cost of providi ng services is approximately $1.7 million per year. All subsequent cost of service calculations at the indi vidual fee level assume a fully burdened hourly rat e of $279 during normal business hours, and $304 if work is performed after business hours. The over time rate was calculated using 1.5 times salary only labor co sts, plus all other eligible costs divided by direc t hours.

5.2 Fee Establishment
The following is a summary of the overall changes t o the Electric Utility - Engineering Division’s fee schedule:
 No fees were requested for deletion.
 Reorganization of fee categories or clarification o f fee names to create a more user-friendly fee structure, such as changing Engineering and Plan Ch eck from a flat fee to a tiered scale based on improvement valuation.
 Addition of new fee categories, notated as “New” in the Current Fee column of Appendix A.3., such as adding a fee for additional plan check requ ired due to changes in scope or revision to original plans.

Cost Element Direct Electric
Utility
Labor 508,359 $
Recurring Non-Labor 104,391
Division-wide Overhead 891,182
Division Support Activities 234,750
Division Total 1,738,681 $
Fully Burdened Hourly Rate $ 279
6,221
Overtime Hourly Rate 304 $
Reference: Direct Hours Only

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City of Colton
User Fee Study 18

5.3 Cost Recovery Evaluation
Appendix A.3 presents the results of the detailed c ost recovery analysis of fees for the City’s Electr ic Utility - Engineering Division. In the Appendix, the “Cost of Service per Activity” column establishes the maxim um adoptable fee amount for the corresponding service identified in the “Fee Name” list.

Currently, the Division is recovering approximately 6% of the total cost of providing services from fe es. As Table 7 shows, the City collects approximately $15, 000 per year in revenue at the current fee amounts. At full cost recovery and the same demand level for th ese services, the City would recover approximately $253,000.

Table 7. Cost Recovery Outcomes

NBS provided a full cost of service evaluation and the framework for considering fees, while the City determined the appropriate cost recovery levels at or below full cost amounts.

Fee Category
Annual
Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at
Full Cost
Recovery Fee
Annual Cost
Recovery
Surplus /
Deficit
Existing
Cost
Recovery
Percentage
Annual Estimated
Revenues at
Recommended
Cost Recovery Fee
Recommended
Cost Recovery
Percentage
Electric Utility - Engineering Division 14,560 $ 252,593 $ (238,033) $ 6% 252,59 3 $ 100%

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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

City of Colton
User Fee Study 19
POLICE DEPARTMENT – ADMINISTRATION DIVISION
The City of Colton Police Department is comprised o f two Divisions: Administration and Operations. Thi s Study focused on the Administration Division and th e services it provides such as:
 Records services
 Animal services
 Code compliance

6.1 Cost of Service Analysis
To establish the estimated and total cost of provid ing services, NBS first calculated separate fully b urdened hourly rates for sworn and non-sworn personnel in t he Police Department.

Table 8. Fully Burdened Hourly Rate

Section 2.2.1, Cost of Service Analysis, further de scribes the types of expenditures and allocated cos ts considered in the development of the rates. All sub sequent cost of service calculations at the individ ual fee level assume a fully burdened hourly rate of $121 for non-sworn personnel, and $295 for sworn officers.

When work is performed after hours, a rate of $134 for non-sworn, and $328 for sworn officers can be used.

The overtime rate was calculated using 1.5 times sa lary only labor costs, plus all other eligible cost s divided by direct hours.

6.2 Fee Establishment
The following is a summary of the overall changes t o the Police Department’s Administration Division f ee schedule:
 Deletion of fees that are no longer used or needed, such as:
o VIN verification
o Postage fees
o Background check fee
o Film production fee
o Rental inspection fee
Cost Element Non-Sworn Sworn Total
Labor 1,287,864 $ 7,423,529 $ 8,711 ,393 $ Recurring Non-Labor 94,718 545,978 640,696 Department-wide Overhead 363,338 2,094 ,361 2,457,700 Department Support Activities 1,220,253 7, 033,802 8,254,055 Division Total 2,966,173 $ 17,097,671 $ 20,063,844 $ Fully Burdened Hourly Rate $ 121 $ 295 24,565 58,049 Reference: Direct Hours Only

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City of Colton
User Fee Study 20
o Sergeant meetings and/or on-site inspections
 Reorganization of fee categories or clarification o f fee names to create a more user-friendly fee structure
 Addition of new fee categories, notated as “New” in the Current Fee column of Appendix A.4., such as:
o Animal apprehension fee – vicious/bite impound
o Animal removal
o Abatement of public nuisance
 Reinspection
 Public nuisance noticing – final notice

6.3 Cost Recovery Evaluation
Appendix A.4 presents the results of the detailed c ost recovery analysis of fees for the City’s Police Department - Administration Division. In the Append ix, the “Cost of Service per Activity” column estab lishes the maximum adoptable fee amount for the correspond ing service identified in the “Fee Name” list.

Currently, the Division is recovering approximately 27% of the total cost of providing services from f ees. As the table below shows, the City collects approximat ely $150,000 per year in revenue at the current fee amounts. At full cost recovery and the same demand level for these services, the City would recover approximately $558,000.

Table 9. Cost Recovery Outcomes

NBS provided a full cost of service evaluation and the framework for considering fees, while the City determined the appropriate cost recovery levels at or below full cost amounts.

The “Recommended Fee” column in Appendix A.4 displa ys the City staff’s initial recommended fee amounts .

These initial recommendations for adjusted fee amou nts are projected to recover approximately 39% of t he total costs of providing fee-related services, assu ming the demand for services remains the same.

Fee Category
Annual
Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at
Full Cost
Recovery Fee
Annual Cost
Recovery
Surplus /
Deficit
Existing
Cost
Recovery
Percentage
Annual Estimated
Revenues at
Recommended
Cost Recovery Fee
Recommended
Cost Recovery
Percentage
Police Department - Administration Division 150,214 $ 557,755 $ (407,541) $ 27% 216 ,737 $ 39%

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City of Colton
User Fee Study 21

CONCLUSION
Based on the outcomes of the Cost of Service Analys is, Fee Establishment, and Cost Recovery Evaluation presented in this Study, the proposed Master Fee Sc hedule has been prepared for implementation and included in the City’s Staff Report.

As discussed throughout this report, the intent of the proposed fee schedule is to improve the City’s recovery of costs incurred to provide individual se rvices, as well as adjust fees where the fees charg ed exceed the average costs incurred. Predicting the a mount to which any adopted fee increases will affec t City revenues is difficult to quantify. For the near-ter m, the City should not count on increased revenues to meet any specific expenditure plan. Experience with the revised fee amounts should be gained first before revenue projections are revised. However, unless th ere is some significant, long-term change in activi ty levels at the City, proposed fee amendments should enhance the City’s cost recovery performance over time, providing it the ability to stretch other res ources further for the benefit of the public at-lar ge.

The City’s Master Fee Schedule should become a livi ng document, but handled with care:
 A fundamental purpose of the fee schedule is to pro vide clarity and transparency to the public and to staff regarding fees imposed by the City. On ce adopted by the City Council, the fee schedule is the final word on the amount and method in which fees should be charged and supersedes all previous fee schedules. If it is dis covered that the master document is missing certain fees, those fees will eventually need to be added to the master fee schedule and should not exist outside the consolidated, master framewor k.
 The City should consider adjusting these user fees and regulatory fees on an annual basis to keep pace with cost inflation. For all fees and cha rges, for example, the City could use a Consumer Price Index adjustment that is applied to the new fee schedule. Conducting a comprehensive user fee Study is not an annual requi rement, and only becomes worthwhile over time as shifts in organization, local practices, le gislative values, or legal requirements result in significant change.

As a final note, it is worth mentioning the path th at fees, in general, have taken in the State of Cal ifornia. In recent years, there is more public demand for the p recise and equitable accounting of the basis for governmental fees and a greater say in when and how they are charged. It is likely that into the futur e, user and regulatory fees will require an even great er level of analysis and supporting data to meet th e public’s growing expectations. An agency’s ability to meet these new pressures will depend on the leve l of technology they invest in their current systems. Co ntinuous improvement and refinement of time trackin g abilities will greatly enhance the City’s ability t o set fees for service and identify unfunded activi ties in years to come.

Disclaimer: In preparing this report and the opinio ns and recommendations included herein, NBS has rel ied on a number of principal assumptions and consid erations with regard to financial matters, conditions and events that may occur in the future. This information and assumptions, including the City’s budgets, time es timate data, and workload information from City staff, were provided by sources we believe to be reliable; however, NBS has not independently verified such information an d assumptions.

While we believe NBS’ use of such information and a ssumptions is reasonable for the purpose of this re port, some assumptions will invariably not material ize as stated herein and may vary significantly due to unanticipa ted events and circumstances. Therefore, the actua l results can be expected to vary from those projec ted to the extent that actual future conditions differ from those ass umed by us or provided to us by others.

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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

Prepared by NBS for the City of Colton
APPENDIX A.1

Cost of Service Analysis – Planning Division

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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.1 City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services 1 Accessory Dwelling Unit Permit Less than 750 s.f. flat 2.50 293 $ 733 $ NEW % 500 $ 68% - - $ - $ - $ 750+ s.f. flat 3.50 293 $ 1,026 $ NEW % 750 $ 73% - - $ - $ - $ 2 Addressing (including change of address) flat 1.50 293 $ 440 $ 95 $ 22% 200 $ 45% 23 2,185 $ 10,115 $ 4,600 $ 3 Administrative Review flat 5.00 293 $ 1,466 $ 115 $ 8% 600 $ 41% 28 3,220 $ 41,048 $ 16,800 $ 4 Annexation Processing deposit [2] 40.00 293 $ 11,728 $ 10,000 $ 85% 10,000 $ 85% - - $ - $ - $ 5 Appeal
Planning Commission Decision to City Council flat 11.00 293 $ 3,225 $ 700 $ 22% 1,500 $ 47% - - $ - $ - $ Application Review Committee/Planning Director's
decision to Planning Commission flat

5.50 293 $ 1,613 $ 700 $ 43% 1,000 $ 62% - - $ - $ - $ 6 Architectural and Site Plan Review
Minimum (including model home sales trailer or
modular) flat

5.00 293 $ 1,466 $ 550 $ 38% 1,100 $ 75% - - $ - $ - $ Structure less than 500 s.f. flat 5.00 293 $ 1,466 $ 540 $ 37% 1,200 $ 82% 2 1,080 $ 2,932 $ 2,400 $ Structure 500 s.f. to 14,999 s.f. flat 5.50 293 $ 1,613 $ 1,275 $ 79% 1,500 $ 93% 18 22,950 $ 29,027 $ 27,000 $ Structure 15,000 s.f. to 100,000 s.f. flat 10.50 293 $ 3,079 $ 2,000 $ 65% 2,800 $ 91% 12 24,000 $ 36,943 $ 33,600 $ Structure over 100,000 s.f. flat 12.50 293 $ 3,665 $ 3,000 $ 82% 3,500 $ 95% 4 12,000 $ 14,660 $ 14,000 $ Single Family or Manufactured/Mobile Home Review fla t 1.25 293 $ 366 $ 435 $ 119% 350 $ 95% 6 2,610 $ 2,199 $ 2,100 $ 7 Building Demolition Review
Residential flat 2.00 293 $ 586 $ 700 $ 119% 400 $ 68% - - $ - $ - $ All Other flat 0.50 293 $ 147 $ 700 $ 477% 130 $ 89% - - $ - $ - $ 8 Business Occupancy Permit
Permit flat 1.50 293 $ 440 $ 293 $ 67% 400 $ 91% 290 84,970 $ 127,542 $ 116,000 $ Waiver (“Clean & Show”/Business Within a Business) f lat 0.75 293 $ 220 $ 21 $ 10% 150 $ 68% 113 2,373 $ 24,849 $ 16,950 $ Activity Service Cost Analysis
Cost of Service
Per Activity
Recommended
Cost Recovery
Percentage
Recommended
Fee/Deposit [4]
Existing Cost
Recovery
Percentage
Current Fee /
Deposit
Fully
Burdened
Hourly Rate
Cost Recovery Analysis
Fee
No. Fee Name Fee Unit/ Type
Notes
Estimated
Average Labor
Time Per
Activity
(hours)
Annual
Estimated
Revenues at
Recommended
Fee
Estimated
Volume of
Activity
Annual Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at
Full Cost
Recovery Fee
Annual Estimated Revenue Analysis
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.1 City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services
Activity Service Cost Analysis
Cost of Service
Per Activity
Recommended
Cost Recovery
Percentage
Recommended
Fee/Deposit [4]
Existing Cost
Recovery
Percentage
Current Fee /
Deposit
Fully
Burdened
Hourly Rate
Cost Recovery Analysis
Fee
No. Fee Name Fee Unit/ Type
Notes
Estimated
Average Labor
Time Per
Activity
(hours)
Annual
Estimated
Revenues at
Recommended
Fee
Estimated
Volume of
Activity
Annual Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at
Full Cost
Recovery Fee
Annual Estimated Revenue Analysis
9 Commercial Cannabis Permit [1]
Payment 1
Application Completeness Review flat 2,714 $ 2,714 $ Consensus Review/Ranking flat 3,000 $ 3,000 $ Zoning Verification Letter flat 179 $ 179 $ Payment 2
Interview Fee flat 1,600 $ 1,600 $
Payment 3
Live Scan/Background Fee flat 155 $ 155 $ Payment 4
Permit Issuance Fee flat 612 $ 612 $
Appeal Fee flat 2,101 $ 2,101 $
10 Code Amendment (Zoning Text or other Municipal
Code) deposit

40.00 293 $ 11,728 $ 10,000 $ 85% 10,000 $ 85% 1 10,000 $ 11,728 $ 10,000 $ 11 Code Interpretation
Director flat 2.50 293 $ 733 $ 275 $ 38% 350 $ 48% 2 550 $ 1,466 $ 700 $ Planning Commission flat 4.50 293 $ 1,319 $ 300 $ 23% 500 $ 38% - - $ - $ - $ 12 Use Permit
Conditional Use Permit (including adult-oriented
business) flat

11.50 293 $ 3,372 $ 3,100 $ 92% 3,372 $ 100% 14 43,400 $ 47,205 $ 47,205 $ Master Conditional Use Permit flat 13.50 293 $ 3,958 $ NEW % 3,958 $ 100% - - $ - $ - $ Minor Conditional Use Permit flat 9.50 293 $ 2,785 $ 1,100 $ 39% 2,000 $ 72% 2 2,200 $ 5,571 $ 4,000 $ 13 Copies [4]
Paper flat See City Clerk See City Clerk
CD/DVD flat See City Clerk See City Clerk
Flash Drive flat See City Clerk See City Clerk
14 Development Agreement deposit 55.00 293 $ 16,126 $ 10,000 $ 62% 15,000 $ 93% - - $ - $ - $ 15 Environmental
Initial Study flat 8.00 293 $ 2,346 $ 10,000 $ 426% 2,346 $ 100% - - $ - $ - $ ND/MND flat 12.00 293 $ 3,518 $ 10,000 $ 284% 3,518 $ 100% - - $ - $ - $ Exemption flat 3.00 293 $ 880 $ 10,000 $ 1137% 600 $ 68% - - $ - $ - $ Mitigation Monitoring annual 8.00 293 $ 2,346 $ NEW % 2,000 $ 85% - - $ - $ - $ EIR deposit [3] 40.00 293 $ 11,728 $ NEW % 10,000 $ 85% - - $ - $ - $ Consultant Preparation actual cost Actual Cost Actual Cost NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.1 City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services
Activity Service Cost Analysis
Cost of Service
Per Activity
Recommended
Cost Recovery
Percentage
Recommended
Fee/Deposit [4]
Existing Cost
Recovery
Percentage
Current Fee /
Deposit
Fully
Burdened
Hourly Rate
Cost Recovery Analysis
Fee
No. Fee Name Fee Unit/ Type
Notes
Estimated
Average Labor
Time Per
Activity
(hours)
Annual
Estimated
Revenues at
Recommended
Fee
Estimated
Volume of
Activity
Annual Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at
Full Cost
Recovery Fee
Annual Estimated Revenue Analysis
16 Fence Permit (Non-DRC)
Residential flat 0.50 293 $ 147 $ 22 $ 15% 75 $ 51% - - $ - $ - $ All Other flat 0.50 293 $ 147 $ 22 $ 15% 125 $ 85% - - $ - $ - $ 17 General Plan Amendment deposit 40.00 293 $ 11,728 $ 10,000 $ 85% 11,728 $ 100% 2 20,000 $ 23,456 $ 23,456 $ 18 General Plan Maintenance Fee %

1.25% of DAP
Application
Fee

1.25% of DAP
Application Fee
19 General Plan Map flat [4] See PW/GIS See PW/GIS
20 Historic Preservation
Certificate of Appropriateness (Minor) flat 2.75 293 $ 806 $ 35 $ 4% 806 $ 100% 1 35 $ 806 $ 806 $ Certificate of Appropriateness (Major) flat 3.50 293 $ 1,026 $ 190 $ 19% 1,026 $ 100% 1 190 $ 1,026 $ 1,026 $ Certificate of Hardship flat 2.50 293 $ 733 $ 100 $ 14% 733 $ 100% - - $ - $ - $ Special Review of Potential Historic Resource flat 4.00 293 $ 1,173 $ No Charge % 1,173 $ 100% - - $ - $ - $ Historic Preservation Amendment (e.g. Landmark
Designation) flat

8.50 293 $ 2,492 $ 1,200 $ 48% 2,492 $ 100% - - $ - $ - $ Mills Act Registration flat 8.50 293 $ 2,492 $ NEW % 2,492 $ 100% - - $ - $ - $ 21 Home Occupancy Permit flat 0.75 293 $ 220 $ 44 $ 20% 220 $ 100% 53 2,332 $ 11,655 $ 11,655 $ 22 Preliminary Landscape & Irrigation Plan Review flat 0.75 293 $ 220 $ 253 $ 115% 220 $ 100% 2 506 $ 440 $ 440$ 23 Legal Review actual cost Actual Cost Actual Cost
24 Maps - Computer Generated (Special Order through G IS flat [4] See PW/GIS See PW/GIS 25 Modification of Entitlement
Minor flat 2.50 293 $ 733 $ 140 $ 19% 300 $ 41% 6 840 $ 4,398 $ 1,800 $ No Public Hearing - ARC or PC flat 5.50 293 $ 1,613 $ 440 $ 27% 800 $ 50% 2 880 $ 3,225 $ 1,600 $ With Public Hearing flat 8.50 293 $ 2,492 $ 693 $ 28% 1,500 $ 60% - - $ - $ - $ 26 Pre-Application Review (Informal Development
Consultation)
Distribution to DRC Members for Comment flat

4.50 293 $ 1,319 $ 400 $ 30% 800 $ 61% 24 9,600 $ 31,666 $ 19,200 $ NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.1 City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services
Activity Service Cost Analysis
Cost of Service
Per Activity
Recommended
Cost Recovery
Percentage
Recommended
Fee/Deposit [4]
Existing Cost
Recovery
Percentage
Current Fee /
Deposit
Fully
Burdened
Hourly Rate
Cost Recovery Analysis
Fee
No. Fee Name Fee Unit/ Type
Notes
Estimated
Average Labor
Time Per
Activity
(hours)
Annual
Estimated
Revenues at
Recommended
Fee
Estimated
Volume of
Activity
Annual Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at
Full Cost
Recovery Fee
Annual Estimated Revenue Analysis
27 Zoning/Planning Inquiry
Application Inquiry - Planning Email Response flat 0.50 293 $ 147 $ No Charge % No Charge % - - $ - $ - $ 28 Public Notice (Newspaper Publication) flat 0.75 293 $ 220 $ 250 $ 114% 220 $ 100% 14 3,500 $ 3,079 $ 3,079 $ 29 Postage actual cost Actual Cost Actual Cost
30 Sign Design Review (Freeway Oriented and Electron ic) flat 11.50 293 $ 3,372 $ 290 $ 9% 2,200 $ 65% - - $ - $ - $ 31 Street Vacation - Planning Commission Review flat 3.50 293 $ 1,026 $ NEW % 586 $ 57% - - $ - $ - $ 32 Uniform Sign Program Review flat 10.00 293 $ 2,932 $ 400 $ 14% 1,466 $ 50% - - $ - $ - $ 33 Sign Permit
Permanent flat 0.75 293 $ 220 $ 125 $ 57% 200 $ 91% - - $ - $ - $ Temporary flat 0.50 293 $ 147 $ 25 $ 17% 75 $ 51% 4 100 $ 586 $ 300$ 34 Specific Plan Amendment deposit 80.00 293 $ 23,456 $ 10,000 $ 43% 15,000 $ 64% 1 10,000 $ 23,456 $ 15,000 $ 35 Tentative Subdivision (Vesting or Non-Vesting Map )
Tentative Parcel Map flat 6.75 293 $ 1,979 $ 1,110 $ 56% 1,700 $ 86% - - $ - $ - $ 5 to 29 Lots flat 9.50 293 $ 2,785 $ 1,934 $ 69% 2,500 $ 90% 2 3,868 $ 5,571 $ 5,000 $ 30 to 99 Lots flat 12.50 293 $ 3,665 $ 2,269 $ 62% 3,200 $ 87% 2 4,538 $ 7,330 $ 6,400 $ 100+ Lots or PUD flat 14.50 293 $ 4,251 $ 2,740 $ 64% 3,800 $ 89% - - $ - $ - $ Lot Line Adjustment
Homeowner flat 1.50 293 $ 440 $ 282 $ 64% 150 $ 34% - - $ - $ - $ All Other flat 1.50 293 $ 440 $ 282 $ 64% 440 $ 100% 1 282 $ 440 $ 440$ Lot Merger flat 5.50 293 $ 1,613 $ 368 $ 23% 1,200 $ 74% 4 1,472 $ 6,450 $ 4,800 $ 36 Time Extension of Entitlement
Planning Commission flat 3.25 293 $ 953 $ 300 $ 31% 953 $ 100% 5 1,500 $ 4,764 $ 4,764 $ Administrative flat 2.25 293 $ 660 $ 125 $ 19% 300 $ 45% 38 4,750 $ 25,069 $ 11,400 $ 37 Variance
Major flat 6.75 293 $ 1,979 $ 1,215 $ 61% 1,800 $ 91% 3 3,645 $ 5,937 $ 5,400 $ Minor Deviation flat 3.25 293 $ 953 $ 410 $ 43% 600 $ 63% 4 1,640 $ 3,812 $ 2,400 $ 38 Zone Change deposit 35.00 293 $ 10,262 $ 10,000 $ 97% 10,000 $ 97% 2 20,000 $ 20,524 $ 20,000 $ NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.1 City of Colton
Planning Division - User Fee Study FY 23
Cost of Providing Activities and Services
Activity Service Cost Analysis
Cost of Service
Per Activity
Recommended
Cost Recovery
Percentage
Recommended
Fee/Deposit [4]
Existing Cost
Recovery
Percentage
Current Fee /
Deposit
Fully
Burdened
Hourly Rate
Cost Recovery Analysis
Fee
No. Fee Name Fee Unit/ Type
Notes
Estimated
Average Labor
Time Per
Activity
(hours)
Annual
Estimated
Revenues at
Recommended
Fee
Estimated
Volume of
Activity
Annual Estimated
Revenues at
Current Fee
Annual
Estimated
Revenues at
Full Cost
Recovery Fee
Annual Estimated Revenue Analysis
39 Zoning Confirmation letter flat 1.50 293 $ 440 $ 102 $ 23% 225 $ 51% 28 2,856 $ 12,314 $ 6,300 $ 40 Zoning Map actual cost Actual Cost Actual Cost
41 Tribal Consultation Process flat 3.50 293 $ 1,026 $ NEW % 900 $ 88% - - $ - $ - $ 42 For services requested of City staff which have no fee listed in this fee schedule flat 1.00 293 $ 293 $ 130 $ 44% 293 $ 100% - - $ - $ - $ REC
ON Developer Deposit Reconciliation hourly 1.00 293 $ 293 $ 130 $ 44% 293 $ 100% 3,000 363,260 $ 879,599 $ 879,599 $ TOTAL 667,332 $ 1,430,888 $ 1,320,221 $
[Notes]
[1] Cannabis fees recently adopted. NBS did not eval uate. [2] Plus LAFCO fee.
[3] Additional fees may apply upon referral to other City Departments. [4] NBS did not evaluate. Fees are not set to increa se.

NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Planning - COS, Page 5 of 5

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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

Prepared by NBS for the City of Colton
APPENDIX A.2

Cost of Service Analysis – Engineering Division

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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.2City of Colton
Engineering Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee Full Cost Recommended
Plan Check Fees
1 Preliminary Development Review
Tentative Parcel Map flat 5.00 309 $ 1,544 $ 687 $ 45% 1,544 $ 100% 3 2,061 $ 4,631 $ 4,631 $ Tentative Tract Map flat 5.00 309 $ 1,544 $ NEW % 1,544 $ 100% - - $ - $ - $ Preliminary Hydrology Review flat 4.00 309 $ 1,235 $ 50 $ 4% 1,235 $ 100% 14 700 $ 17,290 $ 17,290 $ Traffic Scoping Agreements (Preliminary Traffic
Study) flat

4.00 309 $ 1,235 $ NEW % 1,235 $ 100% - - $ - $ - $ Preliminary VMT flat 4.00 309 $ 1,235 $ NEW % 1,235 $ 100% - - $ - $ - $ Preliminary WQMP flat 4.00 309 $ 1,235 $ NEW % 1,235 $ 100% - - $ - $ - $ 2 Final Parcel Map
Base Fee flat 20.00 309 $ 6,175 $ 2,000 $ 32% 6,175 $ 100% 3 6,000 $ 18,525 $ 18,525 $ Each additional parcel each 1.00 309 $ 309 $ 150 $ 49% 309 $ 100% 2 300 $ 618 $ 618 $ 3 Final Tract Map
Base Fee flat 25.00 309 $ 7,719 $ 2,000 $ 26% 7,719 $ 100% 3 6,000 $ 23,157 $ 23,157 $ Each additional parcel lot each 1.00 309 $ 309 $ 100 $ 32% 309 $ 100% - - $ - $ - $ 4 Parcel Merger flat 7.00 309 $ 2,161 $ 1,447 $ 67% 2,161 $ 100% 5 7,235 $ 10,806 $ 10,806 $ 5 Lot Line Adjustment flat 7.00 309 $ 2,161 $ 1,447 $ 67% 2,161 $ 100% - - $ - $ - $ 6 Certificate of Compliance flat 7.00 309 $ 2,161 $ 483 $ 22% 2,161 $ 100% - - $ - $ - $ 7 Street Vacation
Street Vacation flat 30.00 309 $ 9,263 $ 1,951 $ 21% 9,263 $ 100% 3 5,853 $ 27,788 $ 27,788 $ Street Summary Vacation flat 10.00 309 $ 3,088 $ 1,951 $ 63% 3,088 $ 100% - - $ - $ - $ City Attorney Fees actual cost Actual Cost Actual Cost
Fee
No. Fee Name Fee Unit/
Type
Notes
Estimated
Average
Labor Time
Per Activity
(hours)
Annual Estimated Revenue Analysis
Cost of
Service Per
Activity
Current Fee
Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Activity Service Cost Analysis Cost Recovery Analysis
Fully
Burdened
Hourly
Rate
Annual Estimated Revenues
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Engineering - COS, Page 1 of 6

1.2.c
Packet Pg. 89
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.2City of Colton
Engineering Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee Full Cost Recommended
Fee
No. Fee Name Fee Unit/
Type
Notes
Estimated
Average
Labor Time
Per Activity
(hours)
Annual Estimated Revenue Analysis
Cost of
Service Per
Activity
Current Fee
Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Activity Service Cost Analysis Cost Recovery Analysis
Fully
Burdened
Hourly
Rate
Annual Estimated Revenues
8 Off-Site and On-Site Improvement Plans - Plan Check
Includes Signing, Striping, Signalization, Landscaping, and Street Improvement Plans
50,000 $
base fee up to
$50,000 20.00 309 $ 6,175 $ 2,200 $ 36% 6,175 $ 100% 2 4,400 $ 12,350 $ 12,350 $ each additional $1 or fraction thereof each add'l 0.0001 309 $ 0.03 $ $ 0.03 n/a 0.03 $ n/a 49,442 1,607 $ 1,527 $ 1,527 $ 150,000 $ base fee @ $150,000 30.00 309 $ 9,263 $ 5,450 $ 59% 9,263 $ 100% 3 16,350 $ 27,788 $ 27,788 $ each additional $1 or fraction thereof each add'l 0.00010 309 $ 0.03 $ $ 0.03 n/a 0.03 $ n/a 321,433 8,357 $ 9,924 $ 9,924 $ 500,000 $ base fee @ $500,000 65.00 309 $ 20,069 $ 5,450 $ 27% 20,069 $ 100% 1 5,450 $ 20,069 $ 20,069 $ each additional $1 or fraction thereof each add'l 0.00010 309 $ 0.03 $ $ 0.03 n/a 0.03 $ n/a 78,498 2,041 $ 2,424 $ 2,424 $ 1,000,000 $ base fee @ $1,000,000 115.00 309 $ 35,507 $ 8,050 $ 23% 35,507 $ 100% - - $ - $ - $ each additional $1 or fraction thereof each add'l 0.000100 309 $ 0.03 $ $ 0.02 n/a 0.03 $ n/a - - $ - $ - $ 2,500,000 $ base fee @ $2,500,000 265.00 309 $ 81,820 $ 12,050 $ 15% 81,820 $ 100% 1 12,050 $ 81,820 $ 81,820 $ each additional $1 or fraction thereof each add'l 0.00011 309 $ 0.03 $ $ 0.02 n/a 0.03 $ n/a 465,035 6,976 $ 15,220 $ 15,220 $ 10 Final WQMP Review
Base Fee flat 4.00 309 $ 1,235 $ 50 $ 4% 1,235 $ 100% 9 450 $ 11,115 $ 11,115 $ Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost 11 SWPPP Review
Base Fee flat 2.00 309 $ 618 $ 50 $ 8% 618 $ 100% - - $ - $ - $ Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost 12 Stormwater NPDES
Plan Check flat 4.00 309 $ 1,235 $ New % 1,235 $ 100% - - $ - $ - $ Inspection flat 8.00 309 $ 2,470 $ New % 2,470 $ 100% - - $ - $ - $ 13 Final Hydrology Plan Check
Base Fee flat 8.00 309 $ 2,470 $ 200 $ 8% 2,470 $ 100% 9 1,800 $ 22,230 $ 22,230 $ Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost 14 Traffic Control Plan Check
Base Fee flat 4.00 309 $ 1,235 $ 50 $ 4% 1,235 $ 100% 139 6,950 $ 171,668 $ 171,668 $ Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Engineering - COS, Page 2 of 6

1.2.c
Packet Pg. 90
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.2City of Colton
Engineering Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee Full Cost Recommended
Fee
No. Fee Name Fee Unit/
Type
Notes
Estimated
Average
Labor Time
Per Activity
(hours)
Annual Estimated Revenue Analysis
Cost of
Service Per
Activity
Current Fee
Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Activity Service Cost Analysis Cost Recovery Analysis
Fully
Burdened
Hourly
Rate
Annual Estimated Revenues
15 Grading Plan Check
Cubic Yards to be Moved
1,000 base fee up to 1,000 c.y. 10.00 309 $ 3,088 $ 500 $ 16% 3,088 $ 100% 7 3,500 $ 21,613 $ 21,613 $ each additional c.y. or fraction thereof each add'l c.y. 0.0003 309 $ 0.10 $ 0.07 $ n/a 0.10 $ n/a 11,758 823 $ 1,210 $ 1,210 $ 10,000 base fee at 10,000 c.y. 13.00 309 $ 4,014 $ 675 $ 17% 4,014 $ 100% - - $ - $ - $ each additional c.y. or fraction thereof each add'l c.y. 0.0002 309 $ 0.07 $ 0.07 $ n/a 0.07 $ n/a - - $ - $ - $ 100,000 base fee at 100,000 c.y. 34.00 309 $ 10,498 $ 2,250 $ 21% 10,498 $ 100% 1 2,250 $ 10,498 $ 10,498 $ each additional c.y. or fraction thereof each add'l c.y. 0.0003 309 $ 0.10 $ 0.01 $ n/a 0.10 $ n/a 79,000 632 $ 8,293 $ 8,293 $ 16 Subordination Agreement / Lien Release each 2.00 309 $ 618 $ 520 $ 84% 618 $ 100% - - $ - $ - $ 17 Subdivision Agreement each 8.00 309 $ 2,470 $ 1,733 $ 70% 2,470 $ 100% - - $ - $ - $ 18 Final Tract Amendment each 5.00 309 $ 1,544 $ 872 $ 56% 1,544 $ 100% - - $ - $ - $ 19 Final Traffic Study Report Plan Check each 6.00 309 $ 1,853 $ 50 $ 3% 1,853 $ 100% - - $ - $ - $ 20 Final Vehicle Miles Traveled Plan Check each 4.00 309 $ 1,235 $ 50 $ 4% 1,235 $ 100% - - $ - $ - $ 21 Street Name Change each 8.00 309 $ 2,470 $ 1,190 $ 48% 2,470 $ 100% - - $ - $ - $ NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Engineering - COS, Page 3 of 6

1.2.c
Packet Pg. 91
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.2City of Colton
Engineering Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee Full Cost Recommended
Fee
No. Fee Name Fee Unit/
Type
Notes
Estimated
Average
Labor Time
Per Activity
(hours)
Annual Estimated Revenue Analysis
Cost of
Service Per
Activity
Current Fee
Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Activity Service Cost Analysis Cost Recovery Analysis
Fully
Burdened
Hourly
Rate
Annual Estimated Revenues
Permit Fees
22 Off-Site and Onsite Improvement Plans - Inspection
Includes Signing, Striping, Signalization, Landscaping, and Street Improvement Plans
50,000 $
base fee up to
$50,000 8.00 309 $ 2,470 $ 1,050 $ 43% 2,470 $ 100% 2 2,100 $ 4,940 $ 4,940 $ each additional $1 or fraction thereof each add'l 0.0001 309 $ 0.04323 $ $ 0.04 n/a 0.04 $ n/a 49,442 1,730 $ 2,137 $ 2,137 $ 150,000 $ base fee @ $150,000 22.00 309 $ 6,793 $ 3,675 $ 54% 6,793 $ 100% 3 11,025 $ 20,378 $ 20,378 $ each additional $1 or fraction thereof each add'l 0.0001 309 $ 0.04 $ $ 0.03 n/a 0.04 $ n/a 321,433 9,643 $ 13,044 $ 13,044 $ 500,000 $ base fee @ $500,000 68.00 309 $ 20,995 $ 3,675 $ 18% 20,995 $ 100% 1 3,675 $ 20,995 $ 20,995 $ each additional $1 or fraction thereof each add'l 0.0001 309 $ 0.04 $ $ 0.03 n/a 0.04 $ n/a 78,498 2,355 $ 3,199 $ 3,199 $ 1,000,000 $ base fee @ $1,000,000 134.00 309 $ 41,373 $ 3,675 $ 9% 41,373 $ 100% - - $ - $ - $ each additional $1 or fraction thereof each add'l 0.00010 309 $ 0.031 $ $ 0.03 n/a 0.031 $ n/a - - $ - $ - $ 2,500,000 $ base fee @ $2,500,000 284.00 309 $ 87,687 $ 3,675 $ 4% 87,687 $ 100% 1 3,675 $ 87,687 $ 87,687 $ each additional $1 or fraction thereof each add'l 0.0001 309 $ 0.04 $ $ 0.03 n/a 0.04 $ n/a 465,035 13,951 $ 16,311 $ 16,311 $ 24 Traffic Control Inspection Fee
Base Fee flat 2.00 309 $ 618 $ NEW % 618 $ 100% - - $ - $ - $ Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost 25 Grading Inspection
Cubic Yards to be Moved
1,000 base fee up to 1,000 c.y. 4.00 309 $ 1,235 $ 160 $ 13% 1,235 $ 100% 7 1,120 $ 8,645 $ 8,645 $ each additional c.y. or fraction thereof each add'l c.y. 0.0001 309 $ 0.03 $ 0.10 $ n/a 0.03 $ n/a 11,758 1,176 $ 403 $ 403 $ 10,000 base fee at 10,000 c.y. 5.00 309 $ 1,544 $ 380 $ 25% 1,544 $ 100% - - $ - $ - $ each additional c.y. or fraction thereof each add'l c.y. 0.0000 309 $ 0.01 $ 0.02 $ n/a 0.01 $ n/a - - $ - $ - $ 100,000 base fee at 100,000 c.y. 8.00 309 $ 2,470 $ 2,430 $ 98% 2,470 $ 100% 1 2,430 $ 2,470 $ 2,470 $ each additional c.y. or fraction thereof each add'l c.y. 0.0001 309 $ 0.02 $ 0.10 $ n/a 0.02 $ n/a 79,000 7,900 $ 1,951 $ 1,951 $ NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Engineering - COS, Page 4 of 6

1.2.c
Packet Pg. 92
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.2City of Colton
Engineering Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee Full Cost Recommended
Fee
No. Fee Name Fee Unit/
Type
Notes
Estimated
Average
Labor Time
Per Activity
(hours)
Annual Estimated Revenue Analysis
Cost of
Service Per
Activity
Current Fee
Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Activity Service Cost Analysis Cost Recovery Analysis
Fully
Burdened
Hourly
Rate
Annual Estimated Revenues
Encroachment Permit Fees
26 Encroachment Permit Standard Base Fee
(Administrative Processing Fee) Flat

1.00 309 $ 309 $ 116 $ 38% 309 $ 100% 139 16,124 $ 42,917 $ 42,917 $ 27 Residential Driveways each 3.00 309 $ 926 $ 116 $ 13% 926 $ 100% 1 116 $ 926 $ 926 $ 28 Commercial Driveways each 8.00 309 $ 2,470 $ 116 $ 5% 2,470 $ 100% - - $ - $ - $ 29 Cross Gutter, Spandrel each 6.00 309 $ 1,853 $ 116 $ 6% 1,853 $ 100% - - $ - $ - $ 30 Curb and Gutter
Base Fee - up to 100 l.f. flat 2.00 309 $ 618 $ 50 $ 8% 618 $ 100% 2 100 $ 1,235 $ 1,235 $ Plus each additional l.f. per L.F. 0.004 309 $ 1 $ 0.25 $ 19% 1 $ 100% 193 48 $ 248 $ 248 $ 31 Sidewalks
Base Fee - up to 50 s.f. flat 2.00 309 $ 618 $ 50 $ 8% 618 $ 100% 2 100 $ 1,235 $ 1,235 $ Plus each additional s.f. per S.F. 0.004 309 $ 1 $ 0.25 $ 19% 1 $ 100% 1,969 492 $ 2,533 $ 2,533 $ 32 Manholes, Cleanouts, Catch Basins each 3.50 309 $ 1,081 $ 50 $ 5% 1,081 $ 100% - - $ - $ - $ Street Cut Permit (based upon min. 2' wide trench) [1]
33 Asphalt Berms
Base Fee - up to 100 l.f. flat 2.00 309 $ 618 $ 50 $ 8% 618 $ 100% - - $ - $ - $ Plus each additional l.f. per L.F. 0.004 309 $ 1 $ 0.25 $ 19% 1 $ 100% - - $ - $ - $ 34 Asphalt Pavement
Base Fee - up to 50 s.f. flat 2.00 309 $ 618 $ 50 $ 8% 618 $ 100% 12 600 $ 7,410 $ 7,410 $ Plus each additional s.f. per S.F. 0.004 309 $ 1 $ 0.25 $ 19% 1 $ 100% 14,217 3,554 $ 18,290 $ 18,290 $ 35 Handicap Ramp each 2.00 309 $ 618 $ 116 $ 19% 618 $ 100% - - $ - $ - $ 36 Concrete Surface per S.F. 0.06 309 $ 19 $ 2 $ 11% 19 $ 100% 1,969 3,938 $ 36,476 $ 36,476 $ 37 Earth / Dirt Surface per S.F. 0.05 309 $ 15 $ 0.25 $ 2% 15 $ 100% 1,611 403 $ 24,870 $ 24,870 $ 38 Boring (Any Surface) per L.F. 0.03 309 $ 9 $ 2 $ 22% 9 $ 100% 9,742 19,484 $ 90,237 $ 90,237 $ NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Engineering - COS, Page 5 of 6

1.2.c
Packet Pg. 93
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) Appendix A.2City of Colton
Engineering Division - User Fee Study FY 23
Cost of Providing Activities and Services
Current Fee Full Cost Recommended
Fee
No. Fee Name Fee Unit/
Type
Notes
Estimated
Average
Labor Time
Per Activity
(hours)
Annual Estimated Revenue Analysis
Cost of
Service Per
Activity
Current Fee
Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Activity Service Cost Analysis Cost Recovery Analysis
Fully
Burdened
Hourly
Rate
Annual Estimated Revenues
39 Aerial LF
Base Fee - up to 100 l.f. flat 1.00 309 $ 309 $ 35 $ 11% 309 $ 100% 24 840 $ 7,410 $ 7,410 $ Plus each additional l.f. per L.F. 0.004 309 $ 1 $ 0.25 $ 19% 1 $ 100% 33,586 8,397 $ 43,208 $ 43,208 $ 40 Street Closure Permit each 8.00 309 $ 2,470 $ 687 $ 28% 2,470 $ 100% - - $ - $ - $ Miscellaneous
41 Additional plan review required by changes, additions, or revisions to plans
During Business Hours hourly

1.00 309 $ 309 $ 166 $ 54% 309 $ 100% 6 915 $ 1,698 $ 1,698 $ After Business Hours hourly 1.00 330 $ 330 $ NEW % 330 $ 100% - - $ - $ - $ 42 Additional inspections / Re-inspections
During Business Hours hourly 1.00 309 $ 309 $ 166 $ 54% 309 $ 100% 36 5,990 $ 11,115 $ 11,115 $ After Business Hours hourly 1.00 330 $ 330 $ NEW % 330 $ 100% - - $ - $ - $ 43 For services requested of City staff which have no fee listed in this fee schedule
During Business Hours hourly

1.00 309 $ 309 $ 166 $ 54% 309 $ 100% - - $ - $ - $ After Business Hours hourly 1.00 330 $ 330 $ NEW % 330 $ 100% - - $ - $ - $ TOTAL 223,666 $ 992,535 $ 992,535 $
[Notes]
[1] Plus encroachment standard base fee
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Engineering - COS, Page 6 of 6

1.2.c
Packet Pg. 94
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

Prepared by NBS for the City of Colton
APPENDIX A.3

Cost of Service Analysis – Electric Utility - Engineering Division

1.2.c
Packet Pg. 95
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton Appendix A.3
Electric Utility - Engineering Division - User Fee Study FY 23 Cost of Providing Activities and Services
Rule 22 - Customer Service Fees
1 Service Reconnection
During regular work hours flat 1.00 279 $ 279 $ 50 $ 18% 279 $ % - - $ - $ - $ After regular work hours flat 2.00 279 $ 559 $ 120 $ 21% 559 $ % - - $ - $ - $ 2 Service Reconnection - when service is terminated at
the pole or underground service location
During regular work hours flat

2.00 279 $ 559 $ 120 $ 21% 559 $ % - - $ - $ - $ After regular work hours flat 2.00 279 $ 559 $ 180 $ 32% 559 $ % - - $ - $ - $ 3 Minimum Deposit deposit

2.5 times
average
monthly bill

2.5 times average
monthly bill
4 Turn-On Charge
During regular work hours flat 1.00 279 $ 279 $ 10 $ 4% 279 $ % - - $ - $ - $ After regular work hours flat 1.00 279 $ 279 $ NEW % 279 $ % - - $ - $ - $ 5 Electric Meter Test Fee flat 1.00 279 $ 279 $ 5 $ 2% 279 $ % - - $ - $ - $ 6 Returned Check flat 30 $ 30 $
Rule 23 - Electric Department Charges
7 Extension of Overhead Facilities
Additional Footage actual cost actual cost actual cost
Additional Footage - Service Lateral actual cost actual cost actual cost Service Clearance Pole actual cost actual cost actual cost 8 Temporary Service Extension
Reconnect existing meter for temporary service actual cost actual cost actual cost Temporary service connection (no construction) actual cost actual cost actual cost Temporary service connection (with construction) actual cost estimated cost estimated cost
9 Underground Extensions
Primary line actual cost actual cost actual cost
Residential service secondary actual cost actual cost actual cost Service lateral actual cost actual cost actual cost
Non-residential service primary line actual cost actual cost actual cost Estimated
Volume of
Activity
Annual
Estimated
Revenues at
Current Fee
Activity Service Cost Analysis Cost Recovery Analysis Annual Estimated Revenue Analysis Total Cost of
Service Per
Activity
Annual
Estimated
Revenues at Full
Cost Recovery
Fee
Annual Estimated
Revenues at
Recommended
Fee
Current Fee /
Deposit
Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Fee
No. Fee Name Fee Unit/
Type
Notes
FBHR
Estimated
Average
Labor Time
Per Activity
(hours)
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Electric - COS, Page 1 of 3

1.2.c
Packet Pg. 96
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton Appendix A.3
Electric Utility - Engineering Division - User Fee Study FY 23 Cost of Providing Activities and Services Estimated
Volume of
Activity
Annual
Estimated
Revenues at
Current Fee
Activity Service Cost Analysis Cost Recovery Analysis Annual Estimated Revenue Analysis Total Cost of
Service Per
Activity
Annual
Estimated
Revenues at Full
Cost Recovery
Fee
Annual Estimated
Revenues at
Recommended
Fee
Current Fee /
Deposit
Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Fee
No. Fee Name Fee Unit/
Type
Notes
FBHR
Estimated
Average
Labor Time
Per Activity
(hours)
10 Engineering and Plan Check
Checking for meter relocations actual cost actual cost actual cost Changing services at existing residencies actual cost actual cost actual cost Plan Check/engineering of electric service
Residential
Up to $50,000 minimum fee 1.25 279 $ 349 $ $ 70 20% 349 $ % 80 5,600 $ 27,949 $ 27,949 $ $50,001 - $500,000 minimum fee 5.00 279 $ 1,397 $ $ 70 5% 1,397 $ % 83 5,810 $ 115,990 $ 115,990 $ $501,000+ minimum fee 10.00 279 $ 2,795 $ $ 70 3% 2,795 $ % 8 560 $ 22,360 $ 22,360 $ Commercial
Up to $50,000 minimum fee 1.25 279 $ 349 $ $ 70 20% 349 $ % 23 1,610 $ 8,035 $ 8,035 $ $50,001+ minimum fee 20.00 279 $ 5,590 $ $ 70 1% 5,590 $ % 14 980 $ 78,259 $ 78,259 $ Additional plan review required by changes,
additions, or revisions to plans hourly

1.00 279 $ 279 $ NEW % 279 $ % - - $ - $ - $ 11 Street Lighting
Electric department installed standards actual cost per fixture
actual cost
per fixture
actual cost per
fixture
Electric department installed fixture (when existing
Electric Department pole fixture is used actual cost actual cost actual cost NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Electric - COS, Page 2 of 3

1.2.c
Packet Pg. 97
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton Appendix A.3
Electric Utility - Engineering Division - User Fee Study FY 23 Cost of Providing Activities and Services Estimated
Volume of
Activity
Annual
Estimated
Revenues at
Current Fee
Activity Service Cost Analysis Cost Recovery Analysis Annual Estimated Revenue Analysis Total Cost of
Service Per
Activity
Annual
Estimated
Revenues at Full
Cost Recovery
Fee
Annual Estimated
Revenues at
Recommended
Fee
Current Fee /
Deposit
Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Fee
No. Fee Name Fee Unit/
Type
Notes
FBHR
Estimated
Average
Labor Time
Per Activity
(hours)
12 Other Fees
Electric panel replacement and upgrade flat 4.25 279 $ 1,188 $ 430 $ 36% 1,188 $ % - - $ - $ - $ Electric panel replacement and upgrade due to solar flat 5.00 279 $ 1,397 $ 653 $ 47% 1,397 $ % - - $ - $ - $ Meter tampering
minimum
fee/actual
cost
Minimum of
$250 or actual
investigation
cost
Minimum of $250
or actual
investigation cost
Production meter installation actual cost actual cost actual cost 13 For services requested of City staff which have no fee listed in this fee schedule hourly

1.00 279 $ 279 $ 60 $ 21% 279 $ % - - $ - $ - $ TOTAL 14,560 $ 252,593 $ 252,593 $
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Electric - COS, Page 3 of 3

1.2.c
Packet Pg. 98
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

Prepared by NBS for the City of Colton
APPENDIX A.4

Cost of Service Analysis – Police Department – Administration Division

1.2.c
Packet Pg. 99
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton Appendix A.4
Police Department - Administration Division - User Fee Stud y FY 23 Cost of Providing Activities and Services
Non-Sworn Sworn
$ 121 $ 295
I. Records Services
1 City Attorney Fees actual cost Actual Cost Actual Cost 2 Audio-Tape Reproduction flat [2] 0.50 0.00 60 $ 25 $ 41% 60 $ 100% 75 1,875 $ 4,528 $ 4,5 28 $ 3 Booking Fee Reimbursement actual cost [3] Actual Cost Actual Cost 4 Documentation of Police Calls
(Retrieval of Dispatch Logs) per request

0.17 0.00 20 $ 0.25 $ 1% 20 $ 100% 200 50 $ 4,025 $ 4 ,025 $ 5 Concealed Weapons Permit [4]
Initial Application per app 100 $ 100 $
Renewal per permit 25 $ 25 $
6 Crime Analysis Report each No charge.

See online.

No charge. See
online.
7 False Alarm
More than two within any 30 day period flat 0.00 2.00 589 $ 229 $ 39% 250 $ 42% - - $ - $ - $ More than four within any 90 day period flat 0.00 2.00 589 $ 229 $ 39% 250 $ 42% - - $ - $ - $ More than six within any 180 day period flat 0.00 2.00 589 $ 229 $ 39% 250 $ 42% - - $ - $ - $ More than either within any 365 day period flat 0.00 2.00 589 $ 229 $ 39% 250 $ 42% - - $ - $ - $ 8 Fingerprinting
City Processing Fee flat 0.50 0.00 60 $ 20 $ 33% 60 $ 100% - - $ - $ - $ Department of Justice Fee - Payable to DOJ actual cost [3] Actual Cost Actual Cost County Sheriff actual cost [3] Actual Cost Actual Cost
9 Immigration / Emigration Letter each 1.00 0.00 121 $ 65 $ 54% 121 $ 100% 80 5,200 $ 9,660 $ 9,6 60 $ 10 Disruptive Party / Gathering Response
(Public Safety Service Fee) actual cost [3]
Actual Cost Actual Cost
11 Permit Application Fee (i.e. Dance, Massage
Technicians, Pawnbrokers, Solicitors)
Application per app

2.50 0.00 302 $ 489 $ 162% 302 $ 100% - - $ - $ - $ Renewal per permit 1.50 0.00 181 $ 489 $ 270% 181 $ 100% 1 489 $ 181 $ 1 81 $ 12 Photographs per request [2] 0.25 0.00 30 $ 25 $ 83% 30 $ 100% 35 875 $ 1,057 $ 1, 057 $ Annual Estimated Revenue Analysis Activity Service Cost Analysis Cost Recovery Analysis Notes
Annual Estimated
Revenues at
Recommended Fee
Fee
No. Fee Name
Cost of Service
Per Activity
Current Fee /
Deposit
Annual
Estimated
Revenues at Full
Cost Recovery
Fee
Estimated Average Labor
Time Per Activity (hours) Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Annual
Estimated
Revenues at
Current Fee
Fee Unit/ Type
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Police - COS, Page 1 of 4

1.2.c
Packet Pg. 100
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton Appendix A.4
Police Department - Administration Division - User Fee Stud y FY 23 Cost of Providing Activities and Services
Non-Sworn Sworn
$ 121 $ 295
Annual Estimated Revenue Analysis Activity Service Cost Analysis Cost Recovery Analysis Notes
Annual Estimated
Revenues at
Recommended Fee
Fee
No. Fee Name
Cost of Service
Per Activity
Current Fee /
Deposit
Annual
Estimated
Revenues at Full
Cost Recovery
Fee
Estimated Average Labor
Time Per Activity (hours) Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Annual
Estimated
Revenues at
Current Fee
Fee Unit/ Type
13 Tow Release Fees [10]
Standard Tow flat 1.00 1.00 415 $ 96 $ 23% 150 $ 36% 225 21,600 $ 93,440 $ 33,750 $ VITEP Tow flat 1.00 1.00 415 $ 224 $ 54% 250 $ 60% 400 89,600 $ 166,116 $ 100,000 $ 30-day Tow flat 1.00 1.00 415 $ 224 $ 54% 250 $ 60% - - $ - $ - $ Stolen Vehicle Recovery flat 1.00 1.00 415 $ No Charge % No Charge % 175 - $ 72,676 $ - $ 14 Reports (including Crime Reports, Code Enforcement
Reports, Traffic Collision Reports per page [2]

0.25 0.00 30 $ 0.25 $ 1% 30 $ 100% - - $ - $ - $ 15 Repossession Release Fee flat [6] 0.17 0.00 20 $ 15 $ 75% 20 $ 100% 750 11,250 $ 15,094 $ 15,094 $ 16 Subpoena Fee
Records Subpoena per request [7] $ 15 $ 1 5 Deposition Subpoena per day [8] $ 150
$275 per day as
deposit in
advance, plus
actual cost.
17 Body Worn Camera / 911 Call (Video-Tape
Reproduction) flat [2]

1.00 0.00 121 $ 25 $ 21% 121 $ 100% 100 2,500 $ 12,075 $ 12,07 5 $ 18 Emergency Response Cost Recovery (DUI) actual cost [9] Actual Cost Actual Cost 19 Fireworks Violation
1st in 24 months flat [3] $ 3,000 $ 3,000 2nd in 24 months flat [3] $ 5,000 $ 5,000 20 Citation Sign Off
City of Colton each 0.00 0.25 74 $ 25 $ 34% 25 $ 34% 30 750 $ 2,209 $ 75 0 $ Other Agency each 0.00 0.25 74 $ 40 $ 54% 74 $ 100% 15 600 $ 1,105 $ 1, 105 $ II. Animal Control Fees
21 Animal Apprehension Fee
Stray each 1.50 0.00 181 $ 65 $ 36% 100 $ 55% 5 325 $ 906 $ 5 00 $ Vicious/Bite Impound each 2.00 0.00 241 $ NEW % 241 $ 100% 5 - $ 1,207 $ 1,2 07 $ 22 Animal Licensing Fee
For dogs spayed/neutered each 1.00 0.00 121 $ 9 $ 7% 20 $ 17% 600 5,400 $ 72,450 $ 12,00 0 $ For dogs not spayed/neutered each 1.00 0.00 121 $ 50 $ 41% 100 $ 83% 100 5,000 $ 12,075 $ 10,00 0 $ Senior License - spayed/neutered each 1.00 0.00 121 $ 4.50 $ 4% 10 $ 8% 700 3,150 $ 84,525 $ 7,000$ Senior License - not spayed/neutered each 1.00 0.00 121 $ 25 $ 21% 100 $ 83% 30 750 $ 3,622 $ 3, 000 $ Service Animals each 1.00 0.00 121 $ No Charge % No Charge % - - $ - $ - $ Duplicate License Fee each 0.17 0.00 20 $ 5 $ 25% 5 $ 25% - - $ - $ - $ 23 Animal Pick-up Fee (Alive) each 1.50 0.00 181 $ 60 $ 33% 181 $ 100% - - $ - $ - $ NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Police - COS, Page 2 of 4

1.2.c
Packet Pg. 101
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton Appendix A.4
Police Department - Administration Division - User Fee Stud y FY 23 Cost of Providing Activities and Services
Non-Sworn Sworn
$ 121 $ 295
Annual Estimated Revenue Analysis Activity Service Cost Analysis Cost Recovery Analysis Notes
Annual Estimated
Revenues at
Recommended Fee
Fee
No. Fee Name
Cost of Service
Per Activity
Current Fee /
Deposit
Annual
Estimated
Revenues at Full
Cost Recovery
Fee
Estimated Average Labor
Time Per Activity (hours) Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Annual
Estimated
Revenues at
Current Fee
Fee Unit/ Type
24 Animal Trap Rental
Trap Rental Processing Fee each 0.17 0.00 20 $ 20 $ 99% 20 $ 100% 40 800 $ 805 $ 8 05 $ Trap Rental Deposit - Refundable deposit $ 60 $ 6 0 25 Animal Quarantine
Home Quarantine each 1.00 0.00 121 $ No Charge % No Charge % - - $ - $ - $ Shelter Quarantine
Stray each 1.00 0.00 121 $ No Charge % No Charge % - - $ - $ - $ Owned each 1.00 0.00 121 $ 50 $ 41% No Charge % - - $ - $ - $ 26 Animal Related Citation see Muni Code See Muni
Code See Muni Code
27 Animal Removal (Dead Animal) each 1.50 0.00 181 $ NEW % 181 $ 100% - - $ - $ - $ 28 Yard Check each 0.25 0.00 30 $ No Charge % No Charge % - - $ - $ - $ III. Code Compliance Fees
29 Abatement of Public Nuisance
Initial Response flat 1.00 0.00 121 $ 118 $ 98% 121 $ 100% 1,025 120,950 $ 123,769 $ 123,769 $ Follow up Response/Citation flat 1.00 0.00 121 $ 79 $ 65% 121 $ 100% - - $ - $ - $ Reinspection
per
occurrence/per
hr (min 1 hr)

1.00 0.00 121 $ NEW % 121 $ 100% - - $ - $ - $ Filing Pendency flat 1.50 0.00 181 $ 158 $ 87% 181 $ 100% 50 7,900 $ 9,056 $ 9,0 56 $ Public Nuisance Noticing - Final Notice per occurren ce 1.50 0.00 181 $ NEW % 181 $ 100% - - $ - $ - $ CEHAAB Preparation flat 10.00 0.00 1,207 $ 1,036 $ 86% 1,207 $ 100% 8 8,288 $ 9,660 $ 9,6 60 $ Warrant Preparation flat 1.50 0.00 181 $ 799 $ 441% 181 $ 100% - - $ - $ - $ Contractor Fees actual cost Actual Cost Actual Cost
30 Lien
Place Lien flat Actual Cost Actual Cost
Remove Lien flat Actual Cost Actual Cost
31 City Attorney Fees actual cost Actual Cost Actual Cost NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Police - COS, Page 3 of 4

1.2.c
Packet Pg. 102
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton Appendix A.4
Police Department - Administration Division - User Fee Stud y FY 23 Cost of Providing Activities and Services
Non-Sworn Sworn
$ 121 $ 295
Annual Estimated Revenue Analysis Activity Service Cost Analysis Cost Recovery Analysis Notes
Annual Estimated
Revenues at
Recommended Fee
Fee
No. Fee Name
Cost of Service
Per Activity
Current Fee /
Deposit
Annual
Estimated
Revenues at Full
Cost Recovery
Fee
Estimated Average Labor
Time Per Activity (hours) Existing Cost
Recovery
Percentage
Recommended
Fee
Recommended
Cost Recovery
Percentage
Estimated
Volume of
Activity
Annual
Estimated
Revenues at
Current Fee
Fee Unit/ Type
32 For services requested of City staff which have no fee listed in this fee schedule
Non Sworn
During Business Hours flat 1.00 0.00 121 $ 40 $ 33% 121 $ 100% - - $ - $ - $ After Business Hours flat 1.00 0.00 134 $ 40 $ 30% 134 $ 100% - - $ - $ - $ Sworn
During Business Hours flat 0.00 1.00 295 $ 40 $ 14% 295 $ 100% - - $ - $ - $ After Business Hours flat 0.00 1.00 328 $ 40 $ 12% 328 $ 100% - - $ - $ - $ TOTAL 150,214 $ 557,755 $ 216,737 $
[Notes]
[1] Sourced from: "Police Department Fees as of 0512 22.xlsx" provided by City [2] Plus City Attorney Actual Cost
[3] NBS did not evaluate.
[4] Fee set by Penal Code 12054(a). NBS did not eval uate. [5] Fine/penalty set by Muni Code. NBS did not evalu ate. [6] Fee set by Government Code 41612.
[7] Per Evidence Code 1563 (6)
[8] Per Government Code 68096.1/68097.2
[9] Per Government Code 53150
[10] Plus cost of tow
NBS Local Government Solutions
Toll-Free: 800.676.7516 Web: www.nbsgov.com
1/29/2024 Police - COS, Page 4 of 4

1.2.c
Packet Pg. 103
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

Prepared by NBS for the City of Colton
APPENDIX B.1

Comparative Fee Survey – Planning Division

1.2.c
Packet Pg. 104
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Planning Division - User Fee Study FY 23
APPENDIX B.1
Fee Comparison
1 Accessory Dwelling Unit Permit
Less than 750 s.f. flat NEW 733 $ 500 $
750+ s.f. flat NEW 1,026 $ 750 $
2 Addressing (including change of address) flat 95 $ 440 $ 200 $ No Comparison Available No Comparison Available No Comparison Available No Comparison Available N o Comparison Available 3 Administrative Review flat 115 $ 1,466 $ 600 $ No Comparison Available No Comparison Available No Comparison Available No Comparison Available N o Comparison Available 4 Annexation Processing deposit 10,000 $ 11,728 $ 10,000 $ Pre-Annexation Agreement:
$5,000 + LAFCO Fees
Consent Annexation - 100%:
$5,782 + LAFCO Fees
Irrevocable Agreement Annex -
Existing: $551 + LAFCO Fees
Irrevocable Agreement Annex -
New: $1,576 + LAFCO Fees
Irrevocable Agreement Annex -
Appeal: $2,480
Annexation Processing &
Environmental Review: $5,000 No Comparison Available $ 7,825 FB Hourly Rates Min. of $10,634
5 Appeal
Planning Commission Decision to City Council flat 700 $ $ 3,225 1,500 $ 1,040 $ 1,369 $ Design Review Committee/Planning Director's
decision to Planning Commission flat
700 $ 1,613 $ 1,000 $ 1,040 $ No Comparison Available No Comparison Available No Comparison Available ADU Covenant Recordation Fee: $29
Homeowner: $130
Other: $902
No Comparison Available
Appeal: $750
No Comparison Available
Project Applicant Appeal:
65% of Original Application
Fee
Aggrieved Person Appeal:
$313
Aggrieved Adjoining Property:

No Charge
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Planning, Page 1 of 9

1.2.c
Packet Pg. 105
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Planning Division - User Fee Study FY 23
APPENDIX B.1
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
6 Architectural and Site Plan Review
Minimum (including model home sales trailer or
modular) flat
550 $ 1,466 $ 1,100 $
Structure less than 500 s.f. flat 540 $ 1,466 $ 1,200 $ Structure 500 s.f. to 14,999 s.f. flat 1,275 $ 1,613 $ 1,500 $ Structure 15,000 s.f. to 100,000 s.f. flat 2,000 $ 3,079 $ 2,800 $ Structure over 100,000 s.f. flat 3,000 $ 3,665 $ 3,500 $ Single Family or Manufactured/Mobile Home
Review flat
435 $ 366 $ 350 $
7 Building Demolition Review
Residential flat 700 $ 586 $ 400 $ All Other flat 700 $ 147 $ 130 $ 8 Business Occupancy Permit
Permit flat 293 $ 440 $ 400 $ Waiver (“Clean & Show”/Business Within a
Business) flat
21 $ 220 $ 150 $
9 Commercial Cannabis Permit
Payment 1
Application Completeness Review flat 2,714 $ 2,714 $ Consensus Review/Ranking flat 3,000 $ 3,000 $ Zoning Verification Letter flat 179 $ 179 $ Payment 2
Interview Fee flat 1,600 $ 1,600 $
Payment 3
Live Scan/Background Fee flat 155 $ 155 $ Payment 4
Permit Issuance Fee flat 612 $ 612 $
Appeal Fee flat 2,101 $ 2,101 $
No Comparison Available
No Comparison Available No Comparison Available No Comparison Available No Comparison Available Certificate of Deconstruction:
$5,185 No Comparison Available
No Comparison Available No Comparison Available
No Comparison Available
No Comparison Available
No Comparison Available
Plan Check and Inspection:

Residential
1-4 Lots (1st-3rd review): $680
5 or more lots and Multi-
Family/Commercial/Industrial:
(1st-3rd review): $1,017
Re-inspection/Residential
Front Yard Landscape Plan
check Fee: $180
4th and subsequent (Land
Development Reviews:
$83/sheet
4th and subsequent (all other
reviews): 100% of original fee
Recreational Indoor
Marijuana Cultivation: $27 No Comparison Available
Plan Check:
5 or more acres: $3,070
<5 acres: $1,717
No Comparison Available
No Comparison Available
Administrative Site Plan:

Major Project: $4,079 + $568
Fire Review
Minor Project: $1,102 + $568
Fire Review
Amendment: $716 + $568 Fire
Review
Modifications: $980 + $568
Fire Review
Precise Plan of Design:

Residential <5 acres: $2,468
Residential 5-10 acres: $3,092
Residential >10 acres: $3,702
Commercial/Industrial <5
acres: $2,468
Commercial/Industrial 5-10
acres: $3,092
Commercial/Industrial 5-10
acres: $3,702
Revisions: $1,261
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Planning, Page 2 of 9

1.2.c
Packet Pg. 106
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Planning Division - User Fee Study FY 23
APPENDIX B.1
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
10 Code Amendment (Zoning Text or other Municipal
Code) deposit
10,000 $ 11,728 $ 10,000 $ 12,292 $ No Comparison Available T&M $2,000 No Comparison Available No Comparison Available 11 Code Interpretation
Director flat 275 $ 733 $ 350 $ No Comparison Available 706 $ Planning Commission flat 300 $ 1,319 $ 500 $ $ 633 $ 604 12 Use Permit
Conditional Use Permit (including adult-oriented
business) flat
3,100 $ 3,372 $ 3,372 $
Master Conditional Use Permit flat NEW 3,958 $ 3,958 $ No Comparison Available
Conditional Use
Permit:$10,926 + applicable
environmental review, notice,
posting, and acreage/per unit
fees. Includes 3 reviews.

Addtl. Reviews: $945/ea
Conditional Use Permit:

Admin & Existing
Structure:$6,365 + applicable
notice and posting fees.

Includes 3 reviews.

Addtl. Reviews: $540/ea
Conditional Use Permit:

Amended CUP/Substantial
Conformance:$5,875 +
applicable notice and posting
fees. Includes 3 reviews.

Addtl. Reviews: $540/ea
Conditional Use Permits:

Homeowner: $1,784
Nonprofit: $2,691
Other: $6,195
Modification: $3,877
w/ Development Plan: $1,645
Time Extension: $1,380
Conditional Use Permits:
$6,929
Minor: $2,222
Modification: $3,293
Alcohol User: $3,293
Single Family: $3,093
Inspection Fee: $655
Conditional Development
Permit (Minor): $2,292
Conditional Development
Permit (Major): $3,241
No Comparison Available No Comparison Available
Residential <= 10 DU's: $3,114
+ $507 Fire Review
Residential 11-50 DU's: $4,961
+ $507 Fire Review + $38 per
dwelling unit
Residential > 50 DU's: $5,126
+ $507 Fire Review + $22 per
dwelling unit
Comm/Ind < 1 Ac: $3,131 +
$507 Fire Review
Comm/Ind 1-10 Ac: $4,861 +
$507 Fire Review + $110 per
acre
Comm/Ind > 10 Ac: $6,504 +
$507 Fire Review + $54 per
acre > 10 acres
Child Care-Residential > 8
children:$882 + $507 Fire
Review
Child Care Commercial (24
hour): $1,526 + $507 Fire
Review
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Planning, Page 3 of 9

1.2.c
Packet Pg. 107
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Planning Division - User Fee Study FY 23
APPENDIX B.1
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
Minor Conditional Use Permit flat 1,100 $ 2,785 $ 2,000 $ Comm Use in Existing Bldg:
$1,345 + $507 Fire Review
ABC License (New-No Existing
CUP): $2,563 + $507 Fire
Review
CUP Amendment: 50% of
original application fee
CUP - Surface Mining
Reclamation Act: Actual Cost
+ Citywide G&A
Adult-Oriented Business:
$6,615
Conditional Use
Permit:$10,926 + applicable
environmental review, notice,
posting, and acreage/per unit
fees. Includes 3 reviews.

Addtl. Reviews: $945/ea
Conditional Use Permit:

Admin & Existing
Structure:$6,365 + applicable
notice and posting fees.

Includes 3 reviews.

Addtl. Reviews: $540/ea
Conditional Use Permit:

Conditional Use Permits:

Homeowner: $1,784
Nonprofit: $2,691
Other: $6,195
Modification: $3,877
w/ Development Plan: $1,645
Time Extension: $1,380
Conditional Use Permits:
$6,929
Minor: $2,222
Modification: $3,293
Alcohol User: $3,293
Single Family: $3,093
Inspection Fee: $655
Conditional Development
Permit (Minor): $2,292
Conditional Development
Permit (Major): $3,241
13 Copies
Paper flat See City Clerk See City Clerk .30 B&W
.60 Color
CD/DVD flat See City Clerk See City Clerk
Flash Drive flat See City Clerk See City Clerk
14 Development Agreement deposit 10,000 $ 16,126 $ 15,000 $ Consultant: Cost w/ $10k min deposit
Deposit: $7,400
Amendment: $3,225
Annual Review: $1,000
T&M $10,000 No Comparison Available FB Hourly Rates
Min. of $3,987
15 Environmental
Initial Study flat 10,000 $ 2,346 $ 2,346 $ 2,646 $ Environmental Assessment:
$1,054 Assessment: $3,312 $ 598 EIR/ND/MND flat 10,000 $ 3,518 $ 3,518 $ Cost + 25% Administration with min. $2,000 deposit
EIR Report Preparation:
$7,000 T&M $10,000
Deposit: Actual cost to
prepare plus 15% for staff
review
Exemption flat 10,000 $ 880 $ 600 $ 385 $ Expanded Initial
Study/Expanded Project
Review: Deposit: $3,000
Mitigation Monitoring annual
NEW 2,346 $ 2,000 $ Deposit: $3,500 Consultant Preparation actual cost Actual Cost Actual Cost No Comparison Available 16 Fence Permit (Non-DRC)
Residential flat 22 $ 147 $ 75 $ All Other flat $ 22 147 $ $ 125 No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available
No Comparison Available
Planning Codes &
Publications: $.20/pg or Cost
Negative Declaration: $1,586
Categorical Exemption: $338
EIR Review & Processing: City
EIR Contract Cost + 5% Dept.

Admin
No Comparison Available
No Comparison Available
No Comparison Available
No Comparison Available
No Comparison Available
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Planning, Page 4 of 9

1.2.c
Packet Pg. 108
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Planning Division - User Fee Study FY 23
APPENDIX B.1
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
17 General Plan Amendment deposit 10,000 $ 11,728 $ 11,728 $ Minor Amendment 0-10 Ac:
$7,276
Major Amendment > 10 Ac:
$9,619
3,500 $ T&M $5,000 $ 6,670 FB Hourly Rates Min. of $4,087
18 General Plan Maintenance Fee %

1.25% of DAP
Application
Fee

1.25% of DAP
Application Fee No Comparison Available No Comparison Available No Comparison Available General Plan Conformity:
$1,422 No Comparison Available
19 General Plan Map flat See PW/GIS See PW/GIS No Comparison Available No Comparison Available T&M $7,500 No Comparison Available $ 13 20 Historic Preservation
Certificate of Appropriateness (Minor) flat 35 $ 806 $ 806 $ $ 247 COA Residential: $214 Certificate of Appropriateness (Major) flat 190 $ 1,026 $ 1,026 $ $ 677 COA Nonresidential: $1,610 Certificate of Hardship flat 100 $ 733 $ 733 $ $ 782 COEH Residential: $268 COEH Nonresidential: $2,147
Special Review of Potential Historic Resource flat No Charge 1,173 $ 1,173 $ No Comparison Available Historic Preservation Amendment (e.g. Landmark
Designation) flat
1,200 $ 2,492 $ 2,492 $ No Fee Mills Act Registration flat NEW 2,492 $ 2,492 $ Residential: $214 Nonresidential: $703
MA Tax Abatement Program:
1% assessed value, max of
$2,470
21 Home Occupancy Permit flat 44 $ 220 $ 220 $ 275 $ $ 95 No Comparison Available $ 137 $ 45 22 Preliminary Landscape & Irrigation Plan Review flat 253 $ 220 $ 220 $ No Comparison Available Base Fee (3 total submittals):
$1,330/sheet
ea. Addtl.: $155
No Comparison Available $678-$1,603 No Comparison Available 23 Legal Review actual cost Actual Cost Actual Cost No Comparison Available No Comparison Available No Comparison Available No Comparison Available N o Comparison Available 24 Maps - Computer Generated (Special Order through
GIS flat
See PW/GIS See PW/GIS No Comparison Available No Comparison Available No Comparison Available No Comparison Available $ 97 25 Modification of Entitlement
Minor flat 140 $ 733 $ 300 $ No Public Hearing - DRC or PC flat 440 $ 1,613 $ 800 $ With Public Hearing flat 693 $ 2,492 $ 1,500 $ Determination of Historical
Significance: $1,000
No Comparison Available
No Comparison Available
No Comparison Available No Comparison Available
No Comparison Available
No Comparison Available No Comparison Available
No Comparison Available
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Planning, Page 5 of 9

1.2.c
Packet Pg. 109
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Planning Division - User Fee Study FY 23
APPENDIX B.1
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
26 Pre-Application Review
Distribution to DRC Members for Comment flat 400 $ 1,319 $ 800 $ Pre-Application Meeting
(PAM): $1,102 + $110 Fire
Review
$ 784 Preliminary Plan Review:
$4,203 $ 4,053 No Comparison Available 27 Zoning/Planning Inquiry
Application Inquiry - Planning Email Response flat No Charge 147 $ No Charge No Comparison Available No Comparison Available No Comparison Available No Comparison Available N o Comparison Available 28 Public Notice (Newspaper Publication) flat 250 $ 220 $ 220 $ $ 192 285 $ No Comparison Available No Comparison Available No Comparison Available 29 Postage actual cost Actual Cost Actual Cost No Comparison Available No Comparison Available No Comparison Available No Comparison Available N o Comparison Available 30 Sign Design Review (Freeway Oriented and
Electronic) flat
290 $ 3,372 $ 2,200 $
Design Review: Signs
Individual Sign: $412
Planning Commission: $1,681
Sign Deposit: $300 per street
frontage
Pole and Freeway: $809
Sign Program: $906
Sign Program - Planning
Commission: $3,081
No Comparison Available No Comparison Available
31 Street Vacation - Planning Commission Review flat NEW 1,026 $ 586 $ No Comparison Available No Comparison Available No Comparison Available No Comparison Available N o Comparison Available 32 Uniform Sign Program Review flat 400 $ 2,932 $ 1,466 $ Design Review: Signs
Individual Sign: $412
Planning Commission: $1,681
Sign Deposit: $300 per street
frontage
Review Program: $1,300
Sign Program: $906
Sign Program - Planning
Commission: $3,081
1,962 $ 665$
33 Sign Permit
Permanent flat 125 $ 220 $ 200 $ Design Review: Signs
Individual Sign: $412
Planning Commission: $1,681
Sign Deposit: $300 per street
frontage
Sign Plan: $258 137 $ Sign Review: $54 Temporary flat 25 $ 147 $ 75 $ Up to 45 days: $54 61 $ 18 $ 94 $ 34 Specific Plan Amendment deposit 10,000 $ 23,456 $ 15,000 $ Staff: Cost with $20k min.
deposit + $936 Fire Review
Minor Amendment: $7,276
Major Amendment: Cost with
$20k min. deposit
Specific Plan: $17,000/deposit
Amendment: $8,000
Amendment: T&M $7,500
Minor Amendment: T&M
$3,000
$ 6,670 FB Hourly Rates Min. of $4,978
Banner: $43
Wall: $121
Monument: $483
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Planning, Page 6 of 9

1.2.c
Packet Pg. 110
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Planning Division - User Fee Study FY 23
APPENDIX B.1
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
35 Tentative Subdivision (Vesting or Non-Vesting Map )
Tentative Parcel Map flat 1,110 $ 1,979 $ 1,700 $ $ 6,973 $ 5,745 5 to 29 Lots flat 1,934 $ 2,785 $ 2,500 $ 30 to 99 Lots flat 2,269 $ 3,665 $ 3,200 $ Residential: $9,049 + $116/lot
+ environmental review,
notice, and posting fees
Commercial: $9,806 +
$116/lot + environmental
review, notice, and posting
fees
Tentative Tract or Condo
Map: $11,307 + $96 per lot Tentative Tract Map (Base):
$10,296
Per Lot/Unit: $65
$7,825 + $36/lot
Review: $2,821
Commercial/industrial - 5 Lots
or More: $4,462
Residential - 5 Lots or More:
$4,462
Vested Tentative Tract map
Review (City Cost): $5,927
Residential & Urban Lot Split:
$7,204 + $406 Fire Review +
$110 per acre
Comm/Ind: $7,204 + $406 Fire
Review + $110 per acre
Minor
Modification/Substantial
Conform: $2,094 + $406 Fire
Review
Major Modification: $5,677 +
$406 Fire Review
Revert to Acreage: $2,315
Fire Fuel Modification Plan:
$622
Residential 1-100 lots: $8,240
+ $730 Fire Review + $32 per
lot
Residential > 100 lots: $11,300
+ $730 Fire Review + $54/lot >
100 lots
PUD 1-100 Units: $7,689 +
$730 Fire Review + $164/acre
PUD > 100 Units: $10,473 +
$730 Fire Review + $164/acre
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Planning, Page 7 of 9

1.2.c
Packet Pg. 111
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Planning Division - User Fee Study FY 23
APPENDIX B.1
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
100+ Lots or PUD flat 2,740 $ 4,251 $ 3,800 $ Comm/Ind >100 lots: $10,611
+ $730 Fire Review +
$110/acre
CFD Map - Preliminary
Review: $2,976
Minor
Modification/Substantial
Conform: $2,646
Major Modification: $4,740
Fire Fuel Modification Plan:
$622
Residential: $9,049 + $116/lot
+ environmental review,
notice, and posting fees
Commercial: $9,806 +
$116/lot + environmental
review, notice, and posting
fees
Tentative Tract or Condo
Map: $11,307 + $96 per lot
Tentative Tract Map (Base):
$10,296 $7,825 + $36/lot
Review: $2,821
Commercial/industrial - 5 Lots
or More: $4,462
Residential - 5 Lots or More:
$4,462
Vested Tentative Tract map
Review (City Cost): $5,927
Lot Line Adjustment
Homewoner flat 282 $ 440 $ 150 $ All Other flat 282 $ 440 $ 440 $ Lot Merger flat 368 $ 1,613 $ 1,200 $ No Comparison Available Per Lot/Unit: $65 No Comparison Available 36 Time Extension of Entitlement
Planning Commission flat 300 $ 953 $ 953 $ Administrative flat 125 $ 660 $ 300 $ 37 Variance
Major flat 1,215 $ 1,979 $ 1,800 $ Public Hearing Variance:
$3,663 Other: $3,683 $5,174
Single Family: $2,578
Minor Deviation flat 410 $ 953 $ 600 $ Administrative Variance:
$663
Administrative Exception or
Minor: $2,574
Homeowner: $309
548 $
38 Zone Change deposit 10,000 $ 10,262 $ 10,000 $ 0-5 Ac: $6,696
> 5 Ac: $7,607 + $54/acre > 5
acres
3,500 $ >5 acres: $8,050.04 < acres: $7,872 6,670 $ 4,597 $ 2,425 $ No Comparison Available 786 $ Extension of Time for Land
Divisions: $705
1,329 $
No Comparison Available
Time Extension: $1,139
Single Family: $2,578 Extension of Time: $3,611 Tentative Tract/Parcel Map Time Extension: $1,227
Tentative Tract or Parcel Map
Revised: $5,721
Time Extensions: All Case
Types: 50% of original
application fee
Variance: $3,609
Administrative Variance:
$2,425
Sign Variance: $1,245
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Planning, Page 8 of 9

1.2.c
Packet Pg. 112
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Planning Division - User Fee Study FY 23
APPENDIX B.1
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
39 Zoning Confirmation letter flat 102 $ 440 $ 225 $ 142 $ Planning Letter:

Basic: $114
Interpretation and Research
Required: $250 deposit
205 $ 174 $ 189 $ 40 Zoning Map actual cost Actual Cost Actual Cost No Comparison Available No Comparison Available No Comparison Available No Comparison Available $6-$16 41 Tribal Consultation Process flat NEW 1,026 $ 900 $ No Comparison Available No Comparison Available No Comparison Available No Comparison Available N o Comparison Available 42 For services requested of City staff which have no fee listed in this fee schedule flat 130 $ 293 $ 293 $ No Comparison Available 166 $ No Comparison Available $ 126 No Comparison Available NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Planning, Page 9 of 9

1.2.c
Packet Pg. 113
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

Prepared by NBS for the City of Colton
APPENDIX B.2

Comparative Fee Survey - Engineering Division

1.2.c
Packet Pg. 114
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Engineering Division - User Fee Study FY 23
APPENDIX B.2
Fee Comparison
Plan Check Fees
1 Preliminary Development Review
Tentative Parcel Map flat 687 $ 1,544 $ 1,544 $ no comparison no comparison 956 $ no comparison Tentative Tract Map flat NEW 1,544 $ 1,544 $ no comparison no comparison 956 $ no comparison Preliminary Hydrology Review flat 50 $ 1,235 $ 1,235 $ 1,260 $ 493 $ no comparison no comparison $1,250-$3,250 per report Traffic Scoping Agreements (Preliminary Traffic
Study) flat
NEW 1,235 $ 1,235 $ $ 1,410 no comparison no comparison no comparison no comparison Preliminary VMT flat NEW 1,235 $ 1,235 $ $ 130 no comparison no comparison no comparison no comparison Preliminary WQMP flat NEW 1,235 $ 1,235 $ 3,100 $ 3,359 $ no comparison no comparison no comparison 2 Final Parcel Map
Base Fee flat 2,000 $ 6,175 $ 6,175 $ 1-5 parcels: $1,890 Res: $4,771 Non-Res: $5,108 $ 2,666 5,061 $ Each additional parcel each 150 $ 309 $ 309 $ $ 52 $ 43 70 $ 159 $

3 Final Tract Map
Base Fee flat 2,000 $ 7,719 $ 7,719 $ 1-10 lots: $1,890 $ 5,108 $ 2,666 5,696 $ $3,000/sheet Each additional parcel lot each 100 $ 309 $ 309 $ $ 52 $ 43 70 $ 159 $ 100 $ 4 Parcel Merger flat 1,447 $ 2,161 $ 2,161 $ no comparison $ 1,168 no comparison $1,249 + $158.75 each add'l lot $ 2,250
5 Lot Line Adjustment flat 1,447 $ 2,161 $ 2,161 $ 2,310 $ $ 1,168 $1,193 + $59 add'l parcel/lot $1,249 + $158.75 each add'l lot $ 2,250
6 Certificate of Compliance flat 483 $ 2,161 $ 2,161 $ $ 525 $ 980 $ 767 1,031 $ no comparison 7 Street Vacation
Street Vacation flat 1,951 $ 9,263 $ 9,263 $ $ 1,155 $ 3,391 $ 1,959 Street Summary Vacation flat 1,951 $ 3,088 $ 3,088 $ $ 840 $ 1,208 1,119 $ City Attorney Fees actual cost Actual Cost Actual Cost no comparison no comparison no comparison no comparison no comparison 1,250 $
Moreno Valley Ontario Pomona Rialto
$1,250/sheet
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
$63 per lot
$ 2,175
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Engineering, Page 1 of 5

1.2.c
Packet Pg. 115
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Engineering Division - User Fee Study FY 23
APPENDIX B.2
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
8 Off-Site and On-Site Improvement Plans - Plan Check
Includes Signing, Striping, Signalization,
Landscaping, and Street Improvement Plans
50,000 $ base fee up to $50,000
$ 2,200 6,175 $ 6,175 $ 2,719 $ each additional $1 or fraction thereof each add'l 0.03 $ 0.03 $ 0.03 $ 3.75% of construction cost 150,000 $ base fee @ $150,000 5,450 $ 9,263 $ 9,263 $ $ 6,641 each additional $1 or fraction thereof each add'l 0.03 $ 0.03 $ 0.03 $ 3.5% of construction cost 500,000 $ base fee @ $500,000 5,450 $ 20,069 $ 20,069 $ 17,808 $ each additional $1 or fraction thereof each add'l 0.03 $ 0.03 $ 0.03 $ 2.5% of construction cost 1,000,000 $ base fee @ $1,000,000 8,050 $ 35,507 $ 35,507 $ 26,869 $ each additional $1 or fraction thereof each add'l 0.02 $ 0.03 $ 0.03 $ 2,500,000 $ base fee @ $2,500,000 12,050 $ 81,820 $ 81,820 $ each additional $1 or fraction thereof each add'l 0.02 $ 0.03 $ 0.03 $ 10 Final WQMP Review
Base Fee flat 50 $ 1,235 $ 1,235 $ $ 3,100 1,164 $ $ 1,145 $1,950 - $3,750 per report Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost no comparison no comparison no comparison no comparison 11 SWPPP Review
Base Fee flat 50 $ 618 $ 618 $ 315 $ Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost no comparison 12 Stormwater NPDES
Plan Check flat New 1,235 $ 1,235 $ $ 945 $237 - $363 1,371 $ Inspection flat New 2,470 $ 2,470 $ $210 - $304 158 $ $505 - 2,074 13 Final Hydrology Plan Check
Base Fee flat 200 $ 2,470 $ 2,470 $ $3,154 + $39 per acre 1,371 $ $1,750 - $3,350 per report Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost no comparison no comparison no comparison 14 Traffic Control Plan Check
Base Fee flat 50 $ 1,235 $ 1,235 $ $ 420 215 $ 103 $ $ 126 Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost no comparison no comparison no comparison no comparison

4.65% of construction cost

3.61% of construction cost
no comparison
2% of construction cost
no comparison
$7,500 deposit
$1,290 per sheet 6.29% of construction cost
no comparison
no comparison
Actual Cost
no comparison
$800 - $1,300/sheet
no comparison
no comparison
no comparison
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Engineering, Page 2 of 5

1.2.c
Packet Pg. 116
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Engineering Division - User Fee Study FY 23
APPENDIX B.2
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
15 Grading Plan Check
Cubic Yards to be Moved
1,000 base fee up to 1,000 c.y. 500 $ 3,088 $ 3,088 $ $ 1,099 each additional c.y. or fraction thereof each add'l
c.y. 0.07 $ 0.10 $ 0.10 $ $ 0.08 10,000 base fee at 10,000 c.y. 675 $ 4,014 $ 4,014 $ $ 1,793 each additional c.y. or fraction thereof each add'l
c.y. 0.07 $ 0.07 $ 0.07 $ 0.05 $ 100,000 base fee at 100,000 c.y. 2,250 $ 10,498 $ 10,498 $ $ 12,936 each additional c.y. or fraction thereof each add'l
c.y. 0.01 $ 0.10 $ 0.10 $ $ 0.01 16 Subordination Agreement / Lien Release each 520 $ 618 $ 618 $ no comparison no comparison no comparison no comparison no comparison 17 Subdivision Agreement each 1,733 $ 2,470 $ 2,470 $ 472 $ no comparison no comparison no comparison no comparison 18 Final Tract Amendment each 872 $ 1,544 $ 1,544 $ 1,890 $ $ 505 no comparison no comparison no comparison 19 Final Traffic Study Report Plan Check each 50 $ 1,853 $ 1,853 $ 1,410 $ no comparison no comparison no comparison no comparison 20 Final Vehicle Miles Traveled Plan Check each 50 $ 1,235 $ 1,235 $ no comparison no comparison no comparison no comparison no comparison 21 Street Name Change each 1,190 $ 2,470 $ 2,470 $ no comparison no comparison no comparison no comparison no comparison Permit Fees
22 Off-Site and Onsite Improvement Plans - Inspection
Includes Signing, Striping, Signalization,
Landscaping, and Street Improvement Plans
50,000 $ base fee up to $50,000
1,050 $ 2,470 $ 2,470 $ 2,535 $ each additional $1 or fraction thereof each add'l 0.04 $ 0.04 $ 0.04 $ 4% of construction cost 150,000 $ base fee @ $150,000 3,675 $ 6,793 $ 6,793 $ 4,504 $ each additional $1 or fraction thereof each add'l 0.03 $ 0.04 $ 0.04 $ 500,000 $ base fee @ $500,000 3,675 $ 20,995 $ 20,995 $
each additional $1 or fraction thereof each add'l 0.03 $ 0.04 $ 0.04 $ 1,000,000 $ base fee @ $1,000,000 3,675 $ 41,373 $ 41,373 $ each additional $1 or fraction thereof each add'l 0.03 $ 0.03 $ 0.03 $ 2,500,000 $ base fee @ $2,500,000 3,675 $ 87,687 $ 87,687 $ each additional $1 or fraction thereof each add'l 0.03 $ 0.04 $ 0.04 $ $1,371 + additional fee based
on construction cost estimate
Up to 10,000 s.f.: $140
10k - 99k: $2/1k s.f.
100,000: $351
101k-499k: $0.50/1k s.f.
500k: $562
501k-1m: $0.40/1k s.f.
1m+: $773
3% of construction cost
$1,325 per sheet
<$100k: $4% of construction
cost
$100k-$250k: $3% of
construction cost
>250k: $2.5% of construction
cost

5.45% of construction cost

4.24% of construction cost

4.2% of construction cost
Under $25k: 6% of evaluation
$25k-$100k: 4% of next
valuation
Over $100k: 3% over $100k
valuation
$800 - $1,300 per sheet
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Engineering, Page 3 of 5

1.2.c
Packet Pg. 117
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Engineering Division - User Fee Study FY 23
APPENDIX B.2
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
24 Traffic Control Inspection Fee
Base Fee flat NEW 618 $ 618 $ 102 $ 103 $ 126 $ Plus Consultant Cost if Applicable actual cost Actual Cost Actual Cost no comparison no comparison no comparison 25 Grading Inspection
Cubic Yards to be Moved
1,000 base fee up to 1,000 c.y. 160 $ 1,235 $ 1,235 $ 1,809 $ 271 $ 203 $ each additional c.y. or fraction thereof each add'l
c.y. 0.10 $ 0.03 $ 0.03 $ 0.41 $ 0.09 $ 0.10 $ 10,000 base fee at 10,000 c.y. 380 $ 1,544 $ 1,544 $ 5,535 $ 1,099 $ 312 $ each additional c.y. or fraction thereof each add'l
c.y. 0.02 $ 0.01 $ 0.01 $ 0.04 $ 0.05 $ 0.02 $ 100,000 base fee at 100,000 c.y. 2,430 $ 2,470 $ 2,470 $ 8,919 $ 12,936 $ each additional c.y. or fraction thereof each add'l
c.y. 0.10 $ 0.02 $ 0.02 $ 0.03 $ 0.01 $ Encroachment Permit Fees
26 Encroachment Permit Standard Base Fee
(Administrative Processing Fee) Flat
116 $ 309 $ 309 $ no comparison no comparison 116 $ 193 $ no comparison 27 Residential Driveways each 116 $ 926 $ 926 $ no comparison 170 $ no comparison 348 $ no comparison 28 Commercial Driveways each 116 $ 2,470 $ 2,470 $ no comparison 153 $ no comparison 348 $ no comparison 29 Cross Gutter, Spandrel each 116 $ 1,853 $ 1,853 $ no comparison no comparison no comparison no comparison no comparison 30 Curb and Gutter
Base Fee - up to 100 l.f. flat 50 $ 618 $ 618 $ 384 $ Plus each additional l.f. per L.F. 0.25 $ 1 $ 1 $ 0.55 $ 31 Sidewalks
Base Fee - up to 50 s.f. flat 50 $ 618 $ 618 $ 0-100 l.f.: $70 500 s.f. or less: $347.70 Plus each additional s.f. per S.F. 0.25 $ 1 $ 1 $ each add'l 100 l.f.: $1 0.12 $ 32 Manholes, Cleanouts, Catch Basins each 50 $ 1,081 $ 1,081 $ 29 $ no comparison no comparison no comparison no comparison Street Cut Permit (based upon min. 2' wide trench)
33 Asphalt Berms
Base Fee - up to 100 l.f. flat 50 $ 618 $ 618 $ Plus each additional l.f. per L.F. 0.25 $ 1 $ 1 $ no comparison
no comparison
no comparison
$83 per lot
no comparison
no comparison
Up to 10,000 s.f.: $57
10k - 99k: $0.62/1k s.f.
100,000: $115
101k-499k: $0.28/1k s.f.
500k: $407
501k-1m: $5/50k s.f.
1m+: $465
$164 + additional fee based
on construction cost estimate
no comparison
no comparison
no comparison no comparison
no comparison
1,546 $
no comparison
no comparison
no comparison
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Engineering, Page 4 of 5

1.2.c
Packet Pg. 118
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Engineering Division - User Fee Study FY 23
APPENDIX B.2
Fee Comparison
Moreno Valley Ontario Pomona Rialto
City of Colton Comparison Agencies
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit Fontana
34 Asphalt Pavement
Base Fee - up to 50 s.f. flat 50 $ 618 $ 618 $ 0-2,000 l.f. $168 Plus each additional s.f. per S.F. 0.25 $ 1 $ 1 $ each add'l 1,000 l.f.: $105 35 Handicap Ramp each 116 $ 618 $ 618 $ no comparison no comparison no comparison no comparison no comparison 36 Concrete Surface per S.F. 2 $ 19 $ 19 $ no comparison no comparison no comparison no comparison no comparison 37 Earth / Dirt Surface per S.F. 0.25 $ 15 $ 15 $ no comparison no comparison no comparison no comparison no comparison 38 Boring (Any Surface) per L.F.
2 $ 9 $ 9 $
no comparison
Small bore potholes: $28
Other potholes: $82
Bores/splice pits: $55
no comparison no comparison no comparison
39 Aerial LF
Base Fee - up to 100 l.f. flat 35 $ 309 $ 309 $ Plus each additional l.f. per L.F. 0.25 $ 1 $ 1 $ 40 Street Closure Permit each 687 $ 2,470 $ 2,470 $ 102 $ 217 $ no comparison $125.20 per day no comparison Miscellaneous
41 Additional plan review required by changes,
additions, or revisions to plans
During Business Hours hourly
166 $ 309 $ 309 $
After Business Hours hourly NEW 330 $ 330 $ 42 Additional inspections / Re-inspections
During Business Hours hourly 166 $ 309 $ 309 $ 168 $ After Business Hours hourly NEW 330 $ 330 $ Insp fee + 50% 43 For services requested of City staff which have no fee listed in this fee schedule
During Business Hours hourly 166 $ 309 $ 309 $ After Business Hours hourly NEW 330 $ 330 $ no comparison
189 $
168 $
170 $
170 $
170 $
no comparison
no comparison no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
no comparison
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Engineering, Page 5 of 5

1.2.c
Packet Pg. 119
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

Prepared by NBS for the City of Colton
APPENDIX B.3 Comparative Fee Survey – Electric Utility – Engineering Division

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Packet Pg. 120
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Electric Utility - Engineering Division - User Fee Study FY 23 APPENDIX B.3
Fee Comparison
Rule 22 - Customer Service Fees
1 Service Reconnection
During regular work hours flat 50 $ 279 $ 279 $ After regular work hours flat 120 $ 559 $ 559 $ 2 Service Reconnection - when service is terminated
at the pole or underground service location
During regular work hours flat
120 $ 559 $ 559 $
After regular work hours flat 180 $ 559 $ 559 $ 3 Minimum Deposit deposit

2.5 times
average
monthly bill

2.5 times
average
monthly bill
no comparison 2x estimated average for
location or min of $100 no comparison
Residential: $100
All Other: 2x average bill or
$100 min
4 Turn-On Charge
During regular work hours flat 10 $ $ 279 279 $ Same Day 7am-4pm: $35
Same Day 4pm-5:30 pm: $85
Fri 7am-8pm: $105
Next day: $30
Same Day 8am-noon: $35
Same Day noon-3pm: $45
$21.50 next day
$37.50 same day
After regular work hours flat NEW 279 $ 279 $ 205 $ 219 $ 54 $ 5 Electric Meter Test Fee flat 5 $ 279 $ 279 $ First per CY: $0
Residential: $170
Commercial: $395
Industrial: $470
no comparison no comparison 108 $
6 Returned Check flat 30 $ 30 $ no comparison no comparison no comparison per Muni Code $322.50 - $677.25 depending
on service

46.75 $
Azusa Banning Pasadena Riverside
$265 - $397
During Business Hours:
$46.75
After Business Hours:
$258.65
City of Colton
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit
$250/hr
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Electric, Page 1 of 3

1.2.c
Packet Pg. 121
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Electric Utility - Engineering Division - User Fee Study FY 23 APPENDIX B.3
Fee Comparison
Azusa Banning Pasadena Riverside
City of Colton
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit
Rule 23 - Electric Department Charges
7 Extension of Overhead Facilities
Additional Footage actual cost actual cost actual cost
Additional Footage - Service Lateral actual cost actual cost actual cost Service Clearance Pole actual cost actual cost actual cost 8 Temporary Service Extension
Reconnect existing meter for temporary service actual cost actual cost actual cost Temporary service connection (no construction) actual cost actual cost actual cost Temporary service connection (with construction) actual co st estimated cost estimated cost
9 Underground Extensions
Primary line actual cost actual cost actual cost
Residential service secondary actual cost actual cost actual cost Service lateral actual cost actual cost actual cost
Non-residential service primary line actual cost actual cost actual cost 10 Engineering and Plan Check
Checking for meter relocations actual cost actual cost actual cost Changing services at existing residencies actual cost actual cost actual cost Plan Check/engineering of electric service
Residential
Up to $50,000 minimum fee $ 70 349 $ 349 $ $50,001 - $500,000 minimum fee $ 70 1,397 $ 1,397 $ $501,000+ minimum fee $ 70 2,795 $ 2,795 $ Commercial
Up to $50,000 minimum fee $ 70 349 $ 349 $ $50,001+ minimum fee $ 70 5,590 $ 5,590 $ Additional plan review required by changes,
additions, or revisions to plans hourly
NEW 279 $ 279 $ $250/hr no comparison 1,396 $
2,768 $
$5,370 Deposit
Actual Cost
$397.75 - $1,182.50
Actual Cost
Multi-Family
100 units or less: $2,687.50
101+ units: $5,375
Commercial
0-200A: $537.50
Commercial/Industrial
400-800A: $1,075
1,000-3,000A: $2,687.50
4,000A+: $5,375
no comparison Actual Cost
no comparison $250/hr
Actual Cost
Actual Cost
Actual Cost
Actual Cost
Residential & ADU per
Dwelling Unit: $300
no comparison
no comparison
no comparison
no comparison
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Electric, Page 2 of 3

1.2.c
Packet Pg. 122
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Electric Utility - Engineering Division - User Fee Study FY 23 APPENDIX B.3
Fee Comparison
Azusa Banning Pasadena Riverside
City of Colton
Fee No. Fee Name Fee Unit /
Type
Current Fee /
Deposit
Full Cost
Recovery
Rec Fee Level /
Deposit
11 Street Lighting
Electric department installed standards actual cost
per fixture
actual cost per
fixture
actual cost per
fixture
Electric department installed fixture (when
existing Electric Department pole fixture is used actual cost actual cost actual cost
12 Other Fees
Electric panel replacement and upgrade flat 430 $ 1,188 $ 1,188 $ no comparison Electric panel replacement and upgrade due to
solar flat
653 $ 1,397 $ 1,397 $ no comparison Meter tampering
minimum
fee/actual
cost
Minimum of
$250 or actual
investigation
cost
Minimum of
$250 or actual
investigation
cost
107 $
Production meter installation actual cost actual cost actual cost Actual Cost 13 For services requested of City staff which have no
fee listed in this fee schedule hourly
60 $ 279 $ 279 $ 250 $ no comparison 134 $ 102 $ no comparison
no comparison Residential: $3,416.25
Arterial: $3,725.75 no comparison
no comparison
Actual Cost
Actual Cost
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Electric, Page 3 of 3

1.2.c
Packet Pg. 123
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update)

Prepared by NBS for the City of Colton
Comparative Fee Survey – Police Department – Administration Division APPENDIX B.4

1.2.c
Packet Pg. 124
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Police Department - Administration Division - User Fee Study FY 23 APPENDIX B.4
Fee Comparison
I. Records Services
1 City Attorney Fees actual cost Actual Cost Actual Cost Actual Cost No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available 2 Audio-Tape Reproduction flat 25 $ 60 $ $ 45 No Comparison Available Hourly Rate No Comparison Available No Comparison Available 3 Booking Fee Reimbursement actual cost Actual Cost Actual Cost Booking fees set by SB County No Comparison Available No Comparison Available 280.35 $ No Comparison Available 4 Documentation of Police Calls
(Retrieval of Dispatch Logs) per page

0.25 $ 20 $ 20 $ No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available 5 Concealed Weapons Permit
Initial Application per app 100 $ 100 $ $ 215 $ 83 Renewal per permit 25 $ 25 $ $ 25 Plus DOJ fee 6 Crime Analysis Report each No charge.

See online.

No Charge.

See online.
$18 for crime report copies
$145 for crime stat research
No Comparison Available No Comparison Available .25 per page Hourly 7 False Alarm
More than two within any 30 day period flat 229 $ 589 $ 250 $ 1st & 2nd: No Fee 1st & 2nd (12 Month Period):

No Fee
More than four within any 90 day period flat 229 $ 589 $ 250 $ 3rd (12 Month Period):$101.50
More than six within any 180 day period flat 229 $ 589 $ 250 $ 4th (12 Month Period):
$203.20
More than either within any 365 day period flat 229 $ 589 $ 250 $ 5th and all subsequent (12 Month Period): $$271
Burglary - $32 per occurrence
Robbery - $125 per
occurrence
Processed by SB County
Comparison Agencies
Rialto Fontana Moreno Valley Ontario Pomona
Commercial & Residential
(Within 12 mo. Period):
1st: $150/$50 if Registered
2nd: $175/$75 Registered
3rd: $297 Registered & Non-
Registered
4th: $305 Registered & Non-
Registered
5th: $313 Registered & Non-
Registered
6th: $322 Registered & Non-
Registered
No Comparison Available
No Comparison Available
City of Colton
Fee No. Fee Name Current Fee
/ Deposit
Full Cost
Recovery
Rec Fee
Level /
Deposit
Fee Unit /
Type
3rd & subsequent response:
$79.95 ea
No Comparison Available
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Police, Page 1 of 5

1.2.c
Packet Pg. 125
Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Police Department - Administration Division - User Fee Study FY 23 APPENDIX B.4
Fee Comparison
Comparison Agencies
Rialto Fontana Moreno Valley Ontario Pomona
City of Colton
Fee No. Fee Name Current Fee
/ Deposit
Full Cost
Recovery
Rec Fee
Level /
Deposit
Fee Unit /
Type
8 Fingerprinting
City Processing Fee flat 20 $ 60 $ 60 $ $ 22 $ 10 17 $ 43.70 $ Card: $20.10 Department of Justice Fee - Payable to DOJ actual cost Actual Cost Actual Cost Set by DOJ $49* Set by DOJ Fingerprint Ink Card: $8 77.80 $ County Sheriff actual cost Actual Cost Actual Cost Actual Cost Actual Cost 9 Immigration / Emigration Letter each 65 $ 121 $ 121 $ $ 22 No Comparison Available No Comparison Available No Comparison Available No Comparison Available 10 Disruptive Party / Gathering Response
(Public Safety Service Fee) actual cost
Actual Cost Actual Cost No Comparison Available No Comparison Available No Comparison Available No Comparison Available Hourly 11 Permit Application Fee (i.e. Dance, Massage
Technicians, Pawnbrokers, Solicitors)
Application per app
489 $ 302 $ 302 $ $68-$89 $ 300 $ 60 Renewal per permit 489 $ 181 $ 181 $ $ 300 No Comparison Available 12 Photographs per request 25 $ 30 $ 30 $ 23 $ No Comparison Available 356 $ $14.90/CD $4.90/ea, $12.20 for enlargements
13 Tow Release Fees
Standard Tow flat 96 $ 415 $ 150 $ $ 170 Vehicle Release Fee: $216.80 VITEP Tow
flat
224 $ 415 $ 250 $ Vehicle Towing Franchise Fee - Administration: $286.30
30-day Tow flat 224 $ 415 $ 250 $ Vehicle Towing Franchise Fee: $121.40
Stolen Vehicle Recovery flat No Charge 415 $ No Charge 14 Reports (including Crime Reports, Code
Enforcement Reports, Traffic Collision Reports per page

0.25 $ 30 $ 30 $ 18 $ $5 up to 10 pages $0.20 each addt'l page 35 $ .25 per page $ 26.90 15 Repossession Release Fee flat 15 $ 20 $ 20 $ $ 15 $ 15 $ 8 15.95 $ 15.80 $ $ 75
No Comparison Available
No Comparison Available No Comparison Available
No Comparison Available
Towed Vehicle Release Fee:
$13
Administrative fee for Tow
Companies: $149
No Comparison Available
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Police, Page 2 of 5

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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Police Department - Administration Division - User Fee Study FY 23 APPENDIX B.4
Fee Comparison
Comparison Agencies
Rialto Fontana Moreno Valley Ontario Pomona
City of Colton
Fee No. Fee Name Current Fee
/ Deposit
Full Cost
Recovery
Rec Fee
Level /
Deposit
Fee Unit /
Type
16 Subpoena Fee
Records Subpoena per request 15 $ 15 $ 15 $ 15 $ Deposition Subpoena per day 150 $
$275 per
day as
deposit in
advance,
plus actual
cost.
$ 275 275 $ Actual with $187.50 deposit 17 Body Worn Camera / 911 Call (Video-Tape
Reproduction) flat
25 $ 121 $ 121 $ No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available 18 Emergency Response Cost Recovery (DUI) actual cost Actual Cost Actual Cost Actual Cost No Comparison Available No Comparison Available Varies Actual, max of $1,000 19 Fireworks Violation
1st in 24 months flat 3,000 $ 3,000 $
2nd in 24 months flat 5,000 $ 5,000 $
20 Citation Sign Off
City of Colton each 25 $ 74 $ 25 $ Violation Sign-off Vehicle Citation Sign-Off Inspection
Other Agency each 40 $ 74 $ 74 $ 22 $ 18 $ II. Animal Control Fees
21 Animal Apprehension Fee each 65 $ 181 $ 100 $ No Comparison Available 1st - $28
2nd - $55
3rd - $82
4+ - $50 addt'l each
No Comparison Available Per on-site pickup: $40
Initial, Altered: $149
Initial, Unaltered: $196.40
2nd, Altered: $149
2nd, Unaltered: $216.80
3rd, Altered: $149
3rd, Unaltered: $284.50
Additional, plus a required
home check: $108.20
16 $ 15 $ No Comparison Available No Comparison Available
No Comparison Available
No Comparison Available
Hourly Rate
No Comparison Available
Residents: $26.90
Non-Residents: $40.40
No Comparison Available
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Police, Page 3 of 5

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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Police Department - Administration Division - User Fee Study FY 23 APPENDIX B.4
Fee Comparison
Comparison Agencies
Rialto Fontana Moreno Valley Ontario Pomona
City of Colton
Fee No. Fee Name Current Fee
/ Deposit
Full Cost
Recovery
Rec Fee
Level /
Deposit
Fee Unit /
Type
22 Animal Licensing Fee
For dogs spayed/neutered each 9 $ 121 $ 20 $ $20 for 1 year license
$30 for 2 year license
$40 for 3 year license
1 year - $15
2 year - $28
3 year - $35
$ 25 $30/yr $13.40 for 1 year license
$26.50 for 2 year license
$39.60 for 3 year license
For dogs not spayed/neutered each
50 $ 121 $ 100 $
$75 for 1 year license
$150 for 2 year license
$220 for 3 year license
1 year - $54
2 year - $87
3 year - $108
$ 100 $100/yr $54 for 1 year license
$106.30 for 2 year license
$159.70 for 3 year license
Senior License (65+) - spayed/neutered each

4.50 $ 121 $ 10 $
$10 for 1 year license
$15 for 2 year license
$20 for 3 year license
No Comparison Available 5 $ $10/yr $6.60 for 1 year license
$13.10 for 2 year license
$19.50 for 3 year license
Senior License (65+) - not spayed/neutered each
25 $ 121 $ 100 $ No Comparison Available No Comparison Available 55 $ $26.90 for 1 year license
$53 for 2 year license
$79.50 for 3 year license
Service Animals each No Charge 121 $ No Charge No Comparison Available No Comparison Available No Comparison Available No Comparison Available Duplicate License Fee each 5 $ 20 $ 5 $ 5 $ $ 6 No Comparison Available 50% Original Fee 23 Animal Pick-up Fee (Alive) each 60 $ 181 $ 181 $ No Comparison Available Small/Med - $19 Med/Large - $24 No Comparison Available Owner Release Fee: $25 Live: $60.90 Dead: $20.10
24 Animal Trap Rental
Trap Rental Processing Fee each 20 $ 20 $ 20 $ Trap Rental Deposit - Refundable deposit 60 $ 60 $ 25 Animal Quarantine
Home Quarantine each No Charge 121 $ No Charge Shelter Quarantine
Stray each No Charge 121 $ No Charge
Owned each 50 $ 121 $ No Charge 26 Animal Related Citation each see Muni
Code
See Muni
Code No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available 27 Animal Removal (Dead Animal) each NEW 181 $ 181 $ No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available 28 Yard Check each No Charge 30 $ No Charge No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available
No Comparison Available $12 per week
Refundable Dep - $52 No Comparison Available No Comparison Available $1.20/day Refundable Dep: $67.70
No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Police, Page 4 of 5

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Attachment: Attachment 2 Colton_Final Report_1.29.24 (4359 : User Fee Update) City of Colton
Police Department - Administration Division - User Fee Study FY 23 APPENDIX B.4
Fee Comparison
Comparison Agencies
Rialto Fontana Moreno Valley Ontario Pomona
City of Colton
Fee No. Fee Name Current Fee
/ Deposit
Full Cost
Recovery
Rec Fee
Level /
Deposit
Fee Unit /
Type
III. Code Compliance Fees
29 Abatement of Public Nuisance
Initial Response flat 118 $ 121 $ 121 $ $401 + Contractor Costs Follow up Response/Citation flat 79 $ 121 $ 121 $ $ 85 Reinspection
per
occurrence/
per hr (min
1 hr)
NEW 121 $ 121 $ No Comparison Available Filing Pendency flat 158 $ 181 $ 181 $ No Comparison Available Public Nuisance Noticing - Final Notice per
occurrence NEW 181 $ 181 $ No Comparison Available CEHAAB Preparation flat 1,036 $ 1,207 $ 1,207 $ $ 810 Warrant Preparation flat 799 $ 181 $ 181 $ $ 158 Contractor Fees actual cost Actual Cost Actual Cost Actual Cost 30 Lien
Place Lien flat NEW Actual Cost 203 $ No Comparison Available No Comparison Available Remove Lien flat NEW Actual Cost No Comparison Available $71 (does not include County fees) $ 799.50
31 City Attorney Fees actual cost Actual Cost Actual Cost No Comparison Available No Comparison Available No Comparison Available No Comparison Available No Comparison Available 32 For services requested of City staff which have no
fee listed in this fee schedule
Non Sworn
During Business Hours flat
40 $ 121 $ 121 $
After Business Hours flat 40 $ 134 $ 134 $ Sworn
During Business Hours flat 40 $ 295 $ 295 $ After Business Hours flat 40 $ 328 $ 328 $ Noise Disturbance Response
Call-Back:
1st: $106.60
2nd: $213.20
3rd: $553.00
Inspection Warrant Obtained:
$1,117
Notice: $415
Inspection with warrant:
$1,335
No Comparison Available
No Comparison Available No Comparison Available No Comparison Available No Comparison Available
No Comparison Available No Comparison Available
No Comparison Available
Lien Release - Initial Prep: No
Charge
Replacement Line - within 60
days: $79
more than 60 days: $159
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Police, Page 5 of 5

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ITEM NO. 3

STAFF REPORT

DATE: FEBRUARY 6, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STACEY DABBS, FINANCE DIRECTOR
SUBJECT: RECEIVE AND FILE THE FY2022-23 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 FY2022-23 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 Ge nerally 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 receiv ed 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 3 Packet Pg. 130
Staff Report to the Mayor and City Council
FY2022-23 ACFR
February 6, 2024

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

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, 2023.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. Final City of Colton 2023 ACFR

2. Final 2023 YB Internal Control Communication

3. Final 2023 Governance Communication.

4. 2023 Colton Audit Presentation

5. Final Appropriations Limit Report - AUP Letter.
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CITY OF COLTON

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

YEAR ENDING
JUNE 30, 2023

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CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023

INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
MUNICIPAL OFFICIALS v
ORGANIZATION CHART vi

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

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 23
STATEMENT OF ACTIVITIES 24

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 26

RECONCILIATION TO THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION 27

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 28

RECONCILIATION TO THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES TO THE STATEMENT OF ACTIVITIES 29
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT –
GENERAL FUND 31
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT – ARPA
SPECIAL REVENUE FUND 32

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 33

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CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 35
STATEMENT OF CASH FLOWS 36

FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 38
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 39
NOTES TO FINANCIAL STATEMENTS 41

REQUIRED SUPPLEMENTARY INFORMATION

CALPERS PENSION PLANS
SCHEDULE OF CITY’S PROPORTIONATE SHARE 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 105
COMBINING BALANCE SHEET 108

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 112

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND 116
COMMUNITY CHILD CARE SPECIAL REVENUE FUND 117
LIBRARY GRANT SPECIAL REVENUE FUND 118

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CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE
FUND 119
STATE TRAFFIC RELIEF SPECIAL REVENUE FUND 120
ASSET SEIZURE SPECIAL REVENUE FUND 121
AIR QUALITY SPECIAL REVENUE FUND 122
DRUG/GANG INTERVENTION SPECIAL REVENUE FUND 123
HOST CITY FEES SPECIAL REVENUE FUND 124
STORM WATER SPECIAL REVENUE FUND 125
LOCAL TRANSPORTATION SPECIAL REVENUE FUND 126
NEW FACILITIES SPECIAL REVENUE FUND 127
CIVIC CENTER DEVELOPMENT FEE SPECIAL REVENUE FUND 128
FIRE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND 129
POLICE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND 130 ViTEP SPECIAL REVENUE FUND 131
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 132
HOUSING AUTHORITY SPECIAL REVENUE FUND 133
PUBLIC FINANCING AUTHORITY DEBT SERVICE FUND 134
TAXABLE PENSION FUNDING BONDS DEBT SERVICE FUND 135
CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND 136
DEVELOPMENT FEES CAPITAL PROJECTS FUND 137
COLTON CROSSING CAPITAL PROJECTS FUND 138
INTERNAL SERVICE FUNDS 139
COMBINING STATEMENT OF NET POSITION 140

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION 141
COMBINING STATEMENT OF CASH FLOWS 142
CUSTODIAL FUNDS 143

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CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023

COMBINING STATEMENT OF FIDUCIARY NET POSITION 144
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 145 PRIVATE-PURPOSE TRUST FUNDS 146
COMBINING STATEMENT OF FIDUCIARY NET POSITION 147
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 148

STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION CONTENTS 151

FINANCIAL TRENDS
NET POSITION BY COMPONENT 153
CHANGES IN NET POSITION 154
FUND BALANCES OF GOVERNMENTAL FUNDS 157
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 158

REVENUE CAPACITY

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 159
PROPERTY TAX RATES – ALL OVERLAPPING GOVERNMENTS 160
PRINCIPAL PROPERTY TAX PAYERS 161
PROPERTY TAX LEVIES AND COLLECTIONS 162
TAXABLE SALES BY CATEGORY 163
DIRECT AND OVERLAPPING SALES TAX RATES 164
PRINCIPAL SALES TAX REMITTERS – IDENTIFIED BY CATEGORY, TOP 25 165

DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE 166
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 167 LEGAL DEBT MARGIN INFORMATION 168
PLEDGED-REVENUE COVERAGE 169

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CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023

DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS 170
PRINCIPAL EMPLOYERS – TOP 20 171

OPERATING INFORMATION
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM 172 OPERATING INDICATORS BY FUNCTION/PROGRAM 173
CAPITAL ASSETS BY FUNCTION/PROGRAM 174

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INTRODUCTORY SECTION

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR) 650 North La Cadena Drive, Colton California 92324
December 28, 2023
Honorable Mayor and Members of the City Council:

It is a pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Co lton for the fis cal year ended June 30, 202 3. 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 neces sary to enable the reader to gain an understanding of the City’s financial affairs.

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

The City’s financial statements have been audited by CliftonLarsonAllen LLP, a public accounting firm fully licensed and qualified to perform audits of the State and local governments within the State of California. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Colton, California, for the fiscal year ended June 30, 2023, 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, 2023, and are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the particular needs of federal grantor agencies. The standards governing Single Audit eng agements require the independent auditor to report the fair representation of the financial statements and the audited government’s internal controls and compliance with legal requirements, with particular emphasis on internal controls and legal requiremen ts 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 financia l 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)

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 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
Although the focus of this Annual Financial Report is the economic condition of the City for the fiscal year ending June 30, 2023, 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 2023-24 budget. Although the U.S. economy’s performance in the past fiscal year has surpassed expectations, significantly increased inflation, continued supply chain shortages and del ays, increases in natural gas prices, and other related issues continue to challenge business leaders and legislators.

The U.S. economy ended 2022 with GDP growing 2.1%, compared with an increase of 5.9% in 2021. The increase in real GDP in 2022 primarily reflected increases in consumer spending, exports, inventory investment that were partly offset by a decrease in housing investment. As for unemployment, the national rate in 2022 dropped to 3.6 percent, similar to the rates prior to t he pandemic. This also reflects a decrease of 4.5% from the high unemployment in 2020 due to the pandemic and a decrease of 1.7 percent from 2021.

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 rec reational 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.

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. While the City is sustaining operations, the deferred maintenance and costs of post -employment benefits for pensions and retiree medical continue to require ongoing disciplined management and planning to sustain Colton into the future.

The City has two primary General Fund revenue sources that are acutely sensitive to economic conditions: property tax and sales tax. Interestingly, sales tax and property tax revenues had a record-breaking year, despite initial predictions of the impact of the (ii)

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR) 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 cou ntry struggles to deal 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, workforce shortages, and overall geopolit ical 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 has improved, the City’s future economic health and sustainability will be dependent upon maintaining healthy reserves through fiscally conservative budgets and policies, in addition to aggressively pursuing the right economic development opportunities. The City of Colton has significantly improved its financial position through prudent, long-range policy decisions and sound fiscal management. The City will continue to monitor key economic indicators and will remain ready to adjust revenues and spending levels as part of its sound conservative fiscal approach.

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 passed a local tranactions and use tax , Measure S, to meet service demands, 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, su ch 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 funds.

The Colton City Council is committed to ensuring the fiscal health and long-term sustainability of the City. Amid pension and OPEB costs, on November 7, 2017, City Council adopted Resolution R -91-17, adopting a fund balance reserve policy for the General Fund. Among other things, the policy provided a mechanism to commit s urpluses 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 pens ion and OPEB of $19,820,872 and $7,793,103, respectively. Continued diligence and City Council support in ensuring the City is capable of addressing its liabilities will result in the positive fiscal health and sustainability of the City for our continued service to our community.

AWARDS AND ACKOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Colton for its annual comprehensive financial report CAFR for the fiscal year ended June 30, 2021. The Certificate of Achievement from the GFOA and the Certificate of Award for Outstanding Financial Reporting from the CSMFO (iii)

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR) is valid for one year. To be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, the contents of which conform to the program standards. Such report must also satisfy both U.S. GAAP and applicable legal requirements. We believe that our current Annual Comprehensive Financial Report conforms to the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

The successful conclusion of the fiscal year 2022-23 audit would not have been possible without the efficient and dedicated services of the Finance Department staff and staff from various other City departments. We wish to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Finally, City staff truly appreciates the ongoing leadership and support of the City Council. Consistent leadership and support is the foundation for a prosperous and stable future. Continued partnership and support will continue to ensure the fiscal health and sustainability of the City that our community deserves.

Respectfully submitted,
Bill Smith, City Manager Stacey Dabbs, Finance Director (iv)

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR) Colton
City of

CITY COUNCIL
Frank J. Navarro
Mayor
David J. Toro
Mayor Pro Tem
District 1
Kelly J. Chastain
Council Member
District 2
Dr. Luis S. González
Council Member
District 3
John R. Echevarria
Council Member
District 4
(v)

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITYWIDE ORGANIZATION CHART
Fiscal Year 2023-24
Colton Voters
City Treasurer
City Council
City Manager
General Government
City Manager's Office
Staff
Economic Development
City Clerk's Office Staff
Human Resources/
Risk Management
Human Resources
Risk Management
Finance
Finance Administration
Information Services
Customer Service
Purchasing/Warehouse
Police
Administration
Patrol
Detective
Code Enforcement
Animal Services
Fire
Administration
Operations
Community Risk
Reduction
Community Services
Recreation
Human Services
Library
Early Care & Education
Cemetery
Development Services
Planning
Building
Business License
Public Works & Utility
Services
Engineering
Pubilc Works
Auto Shop / Building
Maintenance
Water
Wastewater
Electric
Administration
Engineering
Substation
Transmission/
Distribution
Environmental
Sustainability &
Conservation
City Attorney
City Clerk
(vi)

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

FINANCIAL SECTION

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR) CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(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, 2023, 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, 2023, and the respective changes in financial position and, where applicable, cash flows thereof and the respective 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, 2022, the City adopted new accounting guidance, Statement of Governmental Accounting Standards Board (GASB Statement) No. 96, Subscription-Based Information Technology Arrangements . Our opinions are not modified with respect to this matter.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 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 statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 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 O PEB 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 information for consistency with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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 in formation 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.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 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 December 22, 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
December 22, 2023

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

(5)

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, 2023. 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 2021-22. 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 $184,341,123 (net position). The two components of this total are: $37,359,900 in governmental activities and $143,433,481 in business-type activities.  Overall, the City’s total net position increased by $25,904,227, or 16.3%.  As of the close of the current fiscal year, general fund unassigned fund balance was $11,825,266, and balances committed for the City’s pension and OPEB liabilities total $23,014,745 and $9,968,525 respectively.  Long-term liabilities related to Governmental Activities decreased by $1,503,010 or 3.7%, and long-term liabilities related to Business-type activities decreased $4,346,239, or 9.3%, over the prior year.  As of the close of the fiscal year, the City’s governmental activities reported combined ending net position of $37,359,900, an increase of $22,356,485 over the prior year.  As of June 30, 2023, total long-term liabilities of the governmental activities and business-type activities include net pension liabilities of $101,986,694 and $22,373,258 respectiv ely, which represents increases of $41,208,753, or

67.8%, and $9,127,817, or 68.9%, respectively. As of June 30, 2023, total long-term liabilities of the governmental activities and business-type activities include net OPEB lia bilities of $33,328,907 and $9,859,860 respectively, which represents decreases of $5,724,044, or 14.66%, and $1,724,655, or 14.89%, respectively.

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

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

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

The statement of net position presents information on all City assets deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs regardless of the timing of related cash flows. Thus, some of the revenues and e xpenses reported in this statement will have no effect on cash until some future fiscal period.

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

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

Business-type activities. The City charges a fee to customers to cover all or most of the cost of certain services it provides.

The City’s Electric, Water and Wastewater utilities are reported in this category.

The government-wide financial statements are available on pages 23-25 of this report.

Fund Financial Statements. The fund financial statements provide detailed information about the individual funds, not the City as a whole. A fund is a fiscal and accounting entity with a self-balancing set of accounts that is used to keep track of specific sources of funding and spending for a particular purpose. Certain funds are required by state law and bond covenants.

However, additional funds have been established to assist with controlling and managing money for particular purposes or to show that legal responsibilities for using certain taxes, grants, and other resources are being met. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and year-end balances that are available for spending. Th ese 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 future to finance the City ’s programs. The differences between the results in the governmental fund financial statements to those in the government-wide financial statements are explained in a reconciliation following each governmental fund financial statement.

In addition to the major funds reported separately on the 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.

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

(7)

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 demo nstrate compliance with this budget. This comparison is available on page 38 of this report.

The basic governmental fund financial statements are available on pages 26-29 of this report.

Proprietary funds. When the City charges customers for the services it provides, these services are generally reported in proprietary funds. The City maintains two different types of proprietary funds: enterprise funds and internal service funds.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Electric, Water and Wastewater activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for its insurance 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 in ternal service funds combined are shown separately under the heading Governmental Activities – Internal Service Funds.

The basic proprietary fund financial statements are available on pages 33-37 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government.

Fiduciary funds are not reflected in the government-wide financial stat ements 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 38-39 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the financial statements are available on pages 41-90 of this report.

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

Other information. In addition, the combining statements referred to earlier in connection with non-major governmental funds, internal service funds and fiduciar y funds are presented immediately following the notes to the financial statements.

Combining and individual fund statements and schedules are available on pages 108-148 of this report.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

(8)

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As referenced earlier, net position may serve over time as a useful indicator of a government’s financial position. At the end of the current year, total City assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $184,341,123, an increase of $25,904,227 over the prior year . Of this net increase, governmental activities net position increased by $22,356,485 and business-type activities increased by $3,547,742. The underlying reasons for major changes in each of these components will be discussed in the following sections.

Governmental Activities

In the case of the City, governmental activities increased the City of Colton’s net position by $22,356,485, a 149.0% 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 $39,721,472, or 19.1%.

Total assets increased by $20,715,652, or 11.53% because of increases capital assets an d revenues that exceeded expenses.

Total revenues increased by $8,959,883, whic h is attributed to growth in charges for services, operating and capital grants and contributions, sales taxes, property taxes, and investment income, which were offset by decreases in transient occupancy taxes, motor vehicle in-lieu, and transfers. The City’s governmental expenses were $8,914,448 lower in comparison to the prior year. Year-over-year increases in General Government, Community Services, and Public Works expenses were offset by reductions in Public Safety and Interest on long-term debt categories. The City’s total governmental revenues and transfers of $69,932,103 exceeded governmental expenses of $47,575 ,618. This $22,356 ,485 increase in Go vernmental Activities increased the City’s total net position by 149.0%.

2023 2022 2023 2022 2023 2022
Current and Other Assets 114,276,930$ 99,665,294 $ 115,397,591 $ 123,166,251 $ 229,674,521 $ 222,831,545 $ Capital Assets 86,147,337 80,043,321 113,922,322 108,262,675 200,069,659 $ 188,305,996 $ 200,424,267 179,708,615 229,319,913 231,428,926 429,744,180 411,137,541 Total Assets
Deferred Outflow of Resources 47,686,559 28,680,739 9,521,655 5,756,265 57,208,214 $ 34,437,004 $ Long-term Debt Outstanding 173,997,177 140,105,478 74,514,314 71,457,391 248,511,491 211,562,869 Other Liabilities 21,871,784 12,280,801 6,859,204 8,347,107 28,730,988 20,627,908 Total Liabilities 195,868,961 152,386,279 81,373,518 79,804,498 277,242,479 232,190,777 Deferred Inflow of Resources 14,881,965 40,999,661 10,486,827 13,947,212 25,368,792 54,946,873 Net Position:

Net Inv estment in Capital
Assets 77,436,477 71,515,103 79,504,413 72,029,871 156,940,890 143,544,974 Restricted 33,348,496 30,596,051 3,722,910 3,373,481 37,071,406 33,969,532 Unrestricted (73,425,073) (87,107,740) 63,753,900 68,030,129 (9,671,173) (19,077,611) Total Net Position 37,359,900 $ 15,003,414 $ 146,981,223 $ 143,433,481 $ 184,341,123 $ 158,436,895 $ Governmental Activities Business-Type Activities Government-Wide Totals

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

(9)

The City’s Change in Net Position for Governmental as well as Business-Type activities is illustrated in the following table:

2023 2022 2023 2022 2023 2022
Revenues
Program Revenues:

Charges for Services 8,702,663 $ 8,269,683 $ 95,032,967 $ 86,047,016 $ 103,735,630 $ 94,316,699 $ Operating Contributions and Grants 7,690,358 6,833,007 73,800 7,764,158 6,833,007 Capital Contributions and Grants 5,210,696 4,156,484 5,210,696 4,156,484 General Revenues:

Property Taxes 15,142,416 13,347,412 15,142,416 13,347,412 Sales Taxes 16,432,934 14,143,702 16,432,934 14,143,702 Other Taxes 3,915,070 3,907,479 3,915,070 3,907,479 Use of Money and Property 3,163,201 894,619 2,063,578 (670,481) 5,226,779 224,138 Other 612,778 357,847 - - 612,778 357,847 Total Revenues 60,870,116 51,910,233 97,170,345 85,376,535 158,040,461 137,286,768 Expenses
General Government 3,285,303 359,455 3,285,303 359,455 Public Safety 26,007,014 40,062,962 26,007,014 40,062,962 Community Services 9,134,013 7,766,888 9,134,013 7,766,888 Public Works 7,640,099 6,696,575 7,640,099 6,696,575 Interest on long-term debt 1,509,189 1,604,186 1,509,189 1,604,186 Electric 63,630,884 53,748,647 63,630,884 53,748,647 Water 10,459,233 8,836,901 10,459,233 8,836,901 Wastewater 10,470,499 9,933,047 10,470,499 9,933,047 Total Expenses 47,575,618 56,490,066 84,560,616 72,518,595 132,136,234 129,008,661 Increas e/(Decreas e) in Net
Position Before Transfers 13,294,498 (4,579,833) 12,609,729 12,857,940 25,904,227 8,278,107 Transfers 9,061,987 11,061,215 (9,061,987) (11,061,215) - - Increase/(Decrease) in Net Position 22,356,485$ 6,481,382 $ 3,547,742 $ 1,796,725 $ 25,904,227 $ 8,278,107 $ Net Position - Beginning of Year, 15,003,415$ 8,522,032 $ 143,433,481 $ 141,636,756 $ 158,436,896 $ 150,158,788 $ as restated
Net Position - End of Year 37,359,900 $ 15,003,414 $ 146,981,223 $ 143,433,481 $ 184,341,123 $ 158,436,895 $ Governmental Activities Bus ines s -Type Activities Government-Wide Totals

The following presents the cost of each of the City’s five largest programs— general government, community services, public works, public safety and interest on long-term debt – as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions.

Function/Program Total Cost of Service Net Cost of Service General Government 3,285,303 $ 2,664,410 $
Public Safety 26,007,014 (23,336,851)
Community Services 9,134,013 (4,103,521) Public Works 7,640,099 313,250
Interest on Long-Term Debt 1,509,189 (1,509,189) Total Governmental Activities 47,575,618$ (25,971,901) $ Cost of Governmental Programs

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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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 $3,547,742. The major components are as follows:

Electric Utility
The Electric Utility operations net cost of service decreased $1,411,207 over the prior year. Operating revenues increased $8,397,230, or 13.3%, due to implementation of a Power Cost Adjustment (PCA) while operating expenses rose $9,882,237, or 18.4%, due to economic and market volatility and rising prices for natural gas.

Water Utility
Water Utility sales and charges for current services decreased by $349,274, representing a 2.6% decline. During the fiscal year, Water Utility operating expenses increased $1,622,332, or 18.5%.

Wastewater Utility
Operating revenues increased by $937,995 or 10.0% over the prior period. Operating expenses increased by $537,452 or

5.4%.

Type of Business Total Cost of Service Net Cost of Service Electric Utility 63,630,884 $ 7,962,616 $
Water Utility 10,459,233 2,719,506
Wastewater Utility 10,470,499 (135,971)
Total Business-Type Activity 84,560,616$ 10,546,151 $ Busine ss-Type Activitie s

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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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 74,558,431, an increase of $4,292,475, or 6.1%, over the prior year. Of this balance, $347,650, or 0.5% is classified as non-spendable for inventory and prepaid costs; $30,748,279 or 41.2% is considered legally restricted fund balance to fund such areas as capital projects, public safety, debt service, and other services; an additional $32,983,270, or 44.2%, represents balances committed by the City Council for pension and OPEB liabilities; and the re maining 14.1%, or $10,479,232, 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 $11,825,266, or 26.2% of its total fund balance of $45,156,186. 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, 2023, committed balances for pension and OPEB liabilities are $23,014,745 and $9,968,525 respectively, which represent 22.6% and 30.0% of the net pension and OPEB liabilities for governmental funds respectively. The total General Fund ending fund balance was $3,573,823 more than the previous year’s fund balance. The General Fund’s top three revenue categories for the year, namely sales tax, property tax, and other taxes, saw a combined increase of $4,091,827, or 13.0%, over the prior year.

Revenue Category Amount Percent of Total
Sales Tax 16,432,934 $ 35.9%
Property Tax 15,142,416 33.1%
Other Taxes 3,915,070 8.5%
Licenses and Permits 2,404,931 5.3%
Intergovernmental 1,486,828 3.2%
Charges for Services 2,512,089 5.5%
Use of Money and Property 2,224,361 4.9%
Fines and Forfeitures 636,057 1.4%
Miscellaneous 1,050,893 2.3%
Total General Fund Revenue 45,805,579$ 100%
Revenue by Source - General Fund

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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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
2023
2022
2021
2020
2019
2018

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 $51,605,113 and $52,249,101 respectively.

With respect to revenue, projections increased by $1,996,158 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 $945,723 for a total of $54,546,994 in General Fund revenues. The positive budget variances pertain mostly to an increase in property taxes, sales, charges for services, and licenses and permits, which were supplemented with positive variances most other revenue categories and offset by a negative variance in the investment income, miscellaneous, and transfers in categories.

On the expenditure side, the amended appropriations increased the budget by $3,835,878. 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 $50,973,171, or $5,111,808 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.

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets
The City’s net investment in capital assets for its governme ntal and business-type activities as of June 30, 2023, was $200,069,659, which represents an increase of $11,763,663, or 6.3%, over the prior year. This investment in capital and 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.)

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MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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 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 alon g Serrano Court, Michigan St., Gray St., and Terrace Ave., from Johnston to Mill St.
 CDBG COLT-19-2-03K/0162 – Street Improvements, 6th Street and Alley Cross Gutter Reconstruction at 7th St..
 Rancho Ave./N Street Intersection Improvement Project.  Fleming Park Restroom Improvement Project

Engineering
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):
 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

 Other Capital Improvement Completed:
 HSIP Cycle 9 Improvement Project (RRFB Installation) to the following crosswalks:

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

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

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

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

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

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

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

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

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

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

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

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

13. O Street, at 8th Street (near Wilson Elementary)

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MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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 CDBG Alley Paving Project

1. 7th to La Cadena - between Hanna & B; Laurel St. to Hillcrest St. between Holly & Fairview

2. 2nd St to 4th St. between E & F

3. 4th to 5th between K & L St

4. 4th to 5th St. between M & N St

 South La Cadena Street Improvement Project (Installation of sidewalk and retaining wall between Tropica Rancho Rd. and Litton Ave.)
 FY 2022 Slurry Seal project
 Gonzalez Center Emergency Generator project

 Completed plans and specs and/or, started the bid process and construction of the following projects:

 FY 22/23 Asphalt Paving Project:

1. 9th Street - Valley Blvd. to South End

2. Chase Canyon Lane - Prado Lane to End

3. Eucalyptus Avenue - San Bernardino Avenue to Randall Avenue

4. Pennsylvania Avenue - Valley Blvd to 'F' Street

5. Prado Lane - West City Limit to East End

6. RV Center Drive - Washington Street to Milano Way

7. Valley Blvd. - Rancho Ave. east to BNSF RR Tracks

8. 7th Street - Valley Blvd to 'H' Street

9. Citrus Street - Bordwell Avenue to La Cadena Drive

10. Cooley Drive - I-215 Bridge to Ashley Way (West)

11. Litton Avenue – La Cadena Drive to Bostick Avenue

12. Rancho Avenue - South of 'N' Street to Cement Plant Road

13. Rosedale Avenue (City Limit Only) - Litton Avenue to Seville Street

14. Palm Ave – La Cadena to Rosedale Ave.

15. Alley Paving - From 4th to Pennsylvania; Between Valley Blvd and 'H' St

16. Alley Paving - From E 'G' Street to Fairway Drive; Between Mt. Vernon Avenue and N 'G' St

17. Alley Paving - From La Cadena Drive to 7th Street; Between W 'G' Street and W 'F' Street

18. Hermosa Cemetery Streets

 CDBG Funded Project on the following locations:

1. Alley between, West Acacia Street to Hanna Street, between North Pennsylvania Avenue, and North 6th Street

2. H Street between North Mount Vernon Avenue and Sperry Drive

3. Alley from Fairview Avenue to Larch Avenue, between Palm Drive and Colton Avenue

4. Alley from 10th Street to 11th Street, between East N Avenue and East O Street

5. South Flores Street from East Congress Street to South Terminus

 Guardrail Replacement Project (HSIP Funded) on the following locations:

1. Mt. Vernon Avenue north and south of the bridge over Santa Ana River.

2. South La Cadena Drive between Maryknoll Ave. and I-215 Freeway southbound on-ramp.

3. Barton Road at La Cadena Intersection

 Development – Completed plan check and issued construction permits for grading, hydrology, water quality management plan, off/on-site improvement for the following projects:
 Commercial development of a 7,417 sq. ft. auto part retail store (O’Reilly Auto Parts) at 805 Colton Ave.  Commercial development of a 8,131 sq. ft. warehouse building located at 1650 Fairway Ave.  Commercial development of a 5,500 sq. ft. 2-story office building & 6,000 sq. ft. 2-story warehouse building for an outdoor auction site.

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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 Commercial development of a 25,287 sq. ft. service center for “Giant RV” located 1301 E. Santo Antonio Dr.
 Commercial redevelopment of existing medical offices at 952 S. Mt. Vernon Ave.  Commercial redevelopment of an existing 25,326 sq. ft. food processing building (Beef Jerky Factory) at 125 E. Laurel St.
 Industrial redevelopment of existing warehouses into two (2) 400,000+ and 500,000+ warehouses on the north and south side of Barton Rd., east of La Cadena Dr. (Barton Road Logistics Center). Permits issued for south building only.
 Industrial development of two (2) new warehouses 400,000+ each at 1400 and 1500 Agua Mansa Rd (IDI Logistics and Lineage, respectively). Permits issued for IDI Logistics building only.  Single Family Residence at 3042 Parvin Ln.
 Single Family Residence at 661 S. Walnut Ave.
 Single Family Residence and ADU at 510 & 512 W. “L” St.  ADU at 333 E. “D” St.
 ADU at 3086 Crystal Ridge Ln.

Business-Type Activity

Electric Department
 Completed Projects
 Installed 1,401 OpenWay Bridge Meters (1081 residential and 320 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 of 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 Station Transformer #2 Reconditioning
 Century Substation Transformer #2 Oil Radiator Replacement  Reconfigure Citrus 12kV to Back Feed ARMC
 Reconductor Hub Transformer #1

Water Department
 Completed Projects
 Washington Bridge Water Main Project – Removal and installation of new 18-Inch water distribution line attached to the Mt. Vernon Washington Bridge ($1.50M).
 Well Abandonment 13, 16, 26, Katz, (Sullivan Wells removed from Project)  Ongoing/Future Projects
 AMI Endpoint Project In Process
 Well 31 – Construction & Equipping of New Well at Fogg Street, 85% completed through 6-30-23.

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MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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 Well 32 – Drilling & Construction of New Well at Ri ch Dauer Park ($2.0M). Well development was cancelled per the recommendations of the TH&C Engineering Consultant. The reconstruction of the block wall was added as a change order.
 Well 33 – Engineering and Design for Rialto Well Site (equipping), 25% complete as of 6-30-23. Drilling & Construction of New Well at Rialto Well Site ($2.0M). Drilling phase complete, Contractor started the demobilization and project close out.
 16” F Street Transmission Line – Installation of a new 16-Inch DIP transmission waterline La Cadena Drive to Mt. Vernon Ave ($900K). Progress is 90% complete as of 6-30-23.  5MG Tank Rialto Project – Engin eering and Design for the replacement of Rialto Reservoir 1 ($475K).

Notice of Award was issued on December 21, 2021, plans and design 70% complete as of 6-30-23.  La Loma Reservoir (3MG) Project – Engineering and updates on the previously completed 2018 Plans for the construction of new 3MGD Reservoir at the La Loma Site. On-going WQMP and Design, 50% complete as of 6-30-23.

Wastewater Department
 Completed Projects
 Lake Cadena Sewer Mainline Projects – Survey and Topography Completed  Ongoing/Future Projects
 Wastewater Treatment Plant – Engineering & Design for the upgrade and expansion of the WWTP ($2.6M).

Plans and Design 95% complete, estimated completion August 2023.  New Wastewater Treatment Plant Ad min Building – Bids received on March 30, 2023, pr oject on hold pending rate study and bond financing.
 RIX Facility – On-going Project Upgrades and Sand Replenishment  Lake Cadena Sewer Mainline Project – Currently under design 20% complete. Postponed pending the development of Roquet Ranch Tract.
 Center Street Lift Station Project – Engineering and Design in process, 25% complete as of 6-30-23

Additional information on the City’s capital assets is available in Note 6 on pages 61-62 of this report.

2023 2022 2023 2022 2023 2022
Land $15,306,911 $15,306,911 $6,269,991 $6,269,991 $21,576,902 $21,576,902 Construction in progress 14,499,777 9,334,275 9,377,995 6,852,251 23,877,772 16,186,526 Intangible Assets 328,000 336,000 328,000 336,000
Structure and Improvements 14,855,310 15,138,982 13,572,682 14,091,662 28,427,992 29,230,644 Furniture and E quipm ent 4,008,444 3,754,205 15,348,107 14,684,325 19,356,551 18,438,530 Capacity Rights - - 3,052,734 3,185,461 3,052,734 3,185,461 Infrastructure 37,371,773 36,349,298 65,787,448 62,672,380 103,159,221 99,021,678 Net Right to Use Assets - Equip - 16,703 77,875 9,371 77,875 26,074 Net Subscription Assets 105,122 142,947 107,490 161,234 212,612 304,181 Total 86,147,337$ 80,043,321$ 113,922,322$ 108,262,675$ 200,069,659$ 188,305,996$ (net of d epreciation)
Business-Typ e
Activities Total
Governmental
Activities

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MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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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 $38,771,576, a decrease of $1,503,010 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 $19,481,182, Claims and Judgements with an estimated liability of $7,457,763, and the Public Finance Authority L ease Revenue Bonds, 2007 Series B, which has a balance of $7,160,000 as of June 30, 2023.

Proprietary Funds
The major components of long-term debt for business-type activitie s are bonds to finance infrastructure needs of the City’s utilities. Overall, long-term debt for proprietary funds is $42,281,196, a decrease of $4,507,473, or 9.6%, over the prior year.

Detailed information related to long-term liabilities may be found in Note 8 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 8 on pages 64-71 of this report.

2023 2022 2023 2022 2023 2022
Revenue bonds 7, 160,000$ 7,715,000 $ $40,653,900 $44,369,274 47,813,900 $ 52,084,274 $ Capital lease obligations 137,188 285,383 - - 137,188 285,383 Tax able Pension Bonds 19, 481,182 20,423,685 - - 19,481,182 20,423,685 Notes Payable - - 726,743 1,621,269 726,743 1,621,269 Subscription Liability 123,762 142,947 106,235 161,234 229,997 304,181 Leas e Liability - 15,991 78,423 9,155 78,423 25,146 Compensated absences 2,639,527 2,327,262 715,895 627,737 3,355,422 2,954,999 Other long-term liabilities 9,229,917 9,364,318 - - 9,229,917 9,364,318 Total 38,771,576$ 40,274,586 $ $42,281,196 $46,788,669 81,052,772 $ 87,063,255 $ City of Colton Outstanding Debt at June 30
Business-T yp e
Activities Total
Gov ernmental
Activities

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MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2023

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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, 2023, 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 2023-24 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 2022 with GDP growing 2.1%, compared with an increase of 5.9% in 2021. The increase in real GDP in 2022 primarily reflected increases in consumer spending, exports, inventory investment that were partly offset by a decrease in housing investment. As for unemployment, the national rate in 2022 dropped to 3.6 percent, similar to the rates prior to the pandemic. This also reflects a decrease of 4.5% from the high unemployment in 2020 due to the pandemic and a decrease of 1.7 percent from 2021.

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.

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 demonstr ating the fiscal health and sustainability of our beloved City. While the City is sustai ning operations, the deferred maintenance and costs of post- employment benefits for pensions and retiree medical continue to require ongoing disciplined management and planning to sustain Colton into the future. A copy of the City’s 2023-24 budget is accessi ble 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.

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BASIC FINANCIAL STATEMENTS

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STATEMENT OF NET POSITION
JUNE 30, 2023

See accompanying Notes to Financial Statements.
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Governmental Business-T ype
Activities Activities Total
ASSETS
Cash and Investments 98,844,300 $ 72,379,188 $ 171,223,488 $ Receivables:

Accounts 1,615,571 15,618,589 17,234,160 Taxes 4,712,347 - 4,712,347 Lease 4,353,514 7,781,247 12,134,761 Notes and Loans 7,283 - 7,283 Accrued Interest 570,863 496,503 1,067,366 Internal Balances (1,969,369) 1,969,369 - Prepaid Items 160,431 1,458 161,889 Prepaid Bond Insurance - 12,000 12,000 Deposits - 2,540,529 2,540,529 Due from Other Governments 2,632,607 39,489 2,672,096 Inventories 187,219 1,801,842 1,989,061 Land Held for Resale 84,131 - 84,131 Restricted Assets:

Cash and Investments 210,327 - 210,327 Cash with Fiscal Agent 2,867,706 12,757,377 15,625,083 Capital Assets Not Being Depreciated 29,806,688 15,647,986 45,454,674 Capital Assets, Net of Accumulated Depreciation 56,340,649 98,274,336 154,614,985 Total Assets 200,424,267 229,319,913 429,744,180

DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Refunding 20,347 73,257 93,604 Deferred Amount from OPEB 10,019,259 2,972,075 12,991,334 Deferred Amount from Pensions 37,646,953 6,476,323 44,123,276 Total Deferred Outflows of Resources 47,686,559 9,521,655 57,208,214

LIABILITIES
Accounts Payable 4,953,294 5,058,434 10,011,728 Accrued Interest 450,083 468,942 919,025 Unearned Revenues 14,753,064 - 14,753,064 Deposits Payable 523,296 1,331,828 1,855,124 Due to Other Governments 1,192,047 - 1,192,047 Noncurrent Liabilities:

Due Within One Year 6,723,510 4,557,749 11,281,259 Due in More than One Year 32,048,066 37,723,447 69,771,513 OPEB Liability - Due Within One Year 1,429,288 423,978 1,853,266 OPEB Liability - Due in More than One Year 31,809,619 9,435,882 41,245,501 Net Pension Liability - Due in More than One Year 101,986,694 22,373,258 124,359,952 Total Liabilities 195,868,961 81,373,518 277,242,479

DEFERRED INFLOWS OF RESOURCES
Deferred Amount Related to Leases 4,094,341 7,815,413 11,909,754 Deferred Amounts from OPEB 6,445,885 1,912,083 8,357,968 Deferred Amounts from Pensions 4,341,739 759,331 5,101,070 Total Deferred Inflows of Resources 14,881,965 10,486,827 25,368,792

NET POSITION (DEFICIT)
Net Investment in Capital Assets 77,436,477 79,504,413 156,940,890 Restricted:

Public Safety 1,329,166 - 1,329,166 Capital Projects 26,723,999 - 26,723,999 Debt Service 3,052,592 3,722,910 6,775,502 Education 17,321 - 17,321 Community Services 504,906 - 504,906 Affordable Housing 957,716 - 957,716 Air Quality Projects 762,796 - 762,796 Unrestricted (73,425,073) 63,753,900 (9,671,173) Total Net Position 37,359,900 $ 146,981,223 $ 184,341,123 $

3.a
Packet Pg. 172
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Financial Statements.
(24)

Program Revenues
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government 3,285,303 $ 1,388,686 $ 4,561,027 $ - $ Public Safety 26,007,014 1,640,021 1,030,142 - Community Services 9,134,013 3,343,595 1,100,417 586,480 Public Works 7,640,099 2,330,361 998,772 4,624,216 Interest on Long-Term Debt 1,509,189 - - - Total Governmental Activities 47,575,618 8,702,663 7,690,358 5,210,696 Business-Type Activities:

Electric Utility 63,630,884 71,519,700 73,800 - Water Utility 10,459,233 13,178,739 - - Waste Water Utility 10,470,499 10,334,528 - - Total Business-Type Activities 84,560,616 95,032,967 73,800 - Total Primary Government 132,136,234 $ 103,735,630 $ 7,764,158 $ 5,210,696 $

3.a
Packet Pg. 173
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Financial Statements.
(25)

Functions/Programs
Governmental Activities:

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

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

Taxes:

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

CHANGE IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
Net (Expenses) Revenue and Changes in Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
2,664,410$ - $ 2,664,410$ (23,336,851) - (23,336,851) (4,103,521) - (4,103,521) 313,250 - 313,250 (1,509,189) - (1,509,189) (25,971,901) - (25,971,901) - 7,962,616 7,962,616 - 2,719,506 2,719,506 - (135,971) (135,971) - 10,546,151 10,546,151 (25,971,901) 10,546,151 (15,425,750)
15,142,416 - 15,142,416 1,316,613 - 1,316,613 2,306,201 - 2,306,201 292,256 - 292,256 16,432,934 - 16,432,934 55,169 - 55,169 3,163,201 2,063,578 5,226,779
557,609 - 557,609
9,061,987 (9,061,987) -
48,328,386 (6,998,409) 41,329,977
22,356,485 3,547,742 25,904,227
15,003,415 143,433,481 158,436,896
37,359,900$ 146,981,223 $ 184,341,123 $

3.a
Packet Pg. 174
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2023

See accompanying Notes to Financial Statements.
(26)

ARPA Other Total
Special Revenue Governmental Governmental
General Fund Funds Funds
ASSETS
Cash and Investments 42,465,264 $ 10,053,453 $ 31,558,507 $ 84,077,224 $ Receivables:

Accounts 802,845 - 739,754 1,542,599 Taxes 4,588,818 - 123,529 4,712,347 Lease 4,353,514 - - 4,353,514 Notes and Loans 7,283 - - 7,283 Accrued Interest 256,461 64,220 172,068 492,749 Prepaid Items 160,431 - - 160,431 Due from Other Governments 317,789 - 2,314,818 2,632,607 Due from Other Funds 32,771 - 1,401 34,172 Inventories 187,219 - - 187,219 Land Held for Resale - - 84,131 84,131 Restricted Assets:

Cash and Investments 39,279 - 64,018 103,297 Cash and Investments with Fiscal Agents - - 2,867,706 2,867,706 Total Assets 53,211,674 $ 10,117,673 $ 37,925,932 $ 101,255,279 $

LIABILITIES
Accounts Payable 2,244,101 $ 924,813 $ 1,064,845 $ 4,233,759 $ Unearned Revenues - 9,132,116 5,620,948 14,753,064 Deposits Payable 523,296 - - 523,296 Due to Other Governments 1,192,047 - - 1,192,047 Due to Other Funds - - 34,172 34,172 Total Liabilities 3,959,444 10,056,929 6,719,965 20,736,338

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 1,703 - 1,864,466 1,866,169 Amounts related to Leases 4,094,341 - - 4,094,341 Total Deferred Inflows of Resources 4,096,044 - 1,864,466 5,960,510

FUND BALANCES
Nonspendable:

Prepaid Items 160,431 - - 160,431 Inventories 187,219 - - 187,219 Restricted:

Public Safety - 60,744 688,387 749,131 Capital Projects - - 25,208,723 25,208,723 Debt Service - - 3,052,592 3,052,592 Education - - 17,321 17,321 Affordable Housing - - 957,716 957,716 Air Quality Projects - - 762,796 762,796 Committed to:

Pension Obligation 23,014,745 - - 23,014,745 OPEB Obligation 9,968,525 - - 9,968,525 Unassigned 11,825,266 - (1,346,034) 10,479,232 Total Fund Balances 45,156,186 60,744 29,341,501 74,558,431 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 53,211,674$ 10,117,673 $ 37,925,932 $ 101,255,279 $

3.a
Packet Pg. 175
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

RECONCILIATION TO THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2023

See accompanying Notes to Financial Statements.
(27)

Fund Balances - Total Governmental Funds 74,558,431 $
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 201,098,958$
Subscription Assets 142,947
Accumulated Depreciation and Amortization (116,894,819) 84,347,086 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 (137,188)
Taxable Pension Funding Bonds, Series 2007 (19,481,182) Lease Revenue Bonds, 2007 Series B (7,160,000)
Deferred Loss on Refunding to be Amortized 20,347
Bond Discount to be Amortized 116,291
Bond Premium to be Amortized (59,147)
Compensated Absences (2,566,711)
Subscription Payable (123,762) (31,220,650)
Pension related debt applicable to the City governmental activates are not due and payable in the current period and according ly are not reported as fund liabilities.

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

Deferred Outflows of Resources 37,646,953
Deferred Inflows of Resources (4,341,739)
Net Pension Liability (101,986,694)
OPEB-related debt applicable to the City's governmental activities is not due and payable in the current period and accordingly is not reported as fund liabilities.

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

Deferred Outflows of Resources 10,019,259
Deferred Inflows of Resources (6,445,885)
OPEB Liability (33,238,907)
Accrued interest payable for the current portion of interest due on bonds are not reported in the governmental funds. (450,083) Revenues reported as unavailable revenue in the governmental funds and recognized in the Statement of Activities. These are included in the intergovernmental revenues in the governmental fund activity. 1,866,169 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. 6,605,960
Net Position of Governmental Activities 37,359,900$

3.a
Packet Pg. 176
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Financial Statements.
(28)

ARPA Other Total
Special Revenue Governmental Governmental
General Fund Funds Funds

REVENUES
Property Taxes 15,142,416 $ - $ 634,573$ 15,776,989$ Sales Taxes 16,432,934 - - 16,432,934 Other Taxes 3,915,070 - - 3,915,070 Licenses and Permits 2,404,931 - - 2,404,931 Intergovernmental 1,486,828 4,604,270 7,996,907 14,088,005 Charges for Services 2,512,089 - 827,148 3,339,237 Investment Income 2,224,361 120,257 718,931 3,063,549 Fines and Forfeitures 636,057 - - 636,057 Contributions - - 18,108 18,108 Miscellaneous 1,050,893 - 104,550 1,155,443 Total Revenues 45,805,579 4,724,527 10,300,217 60,830,323

EXPENDITURES
Current:

General Government 580,907 1,278,028 46,755 1,905,690 Public Safety 36,374,724 - 480,235 36,854,959 Community Services 7,694,347 - 1,300,150 8,994,497 Public Works 3,334,400 - 1,836,265 5,170,665 Capital Outlay 351,341 3,326,242 5,648,194 9,325,777 Debt Service:

Principal Retirement 166,603 - 1,900,777 2,067,380 Interest and Fiscal Charges 12,670 - 1,330,446 1,343,116 Total Expenditures 48,514,992 4,604,270 12,542,822 65,662,084

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,709,413) 120,257 (2,242,605) (4,831,761)

OTHER FINANCING SOURCES (USES)
Transfers In 8,741,415 - 3,401,384 12,142,799 Transfers Out (2,458,179) - (560,384) (3,018,563) Total Other Financing Sources (Uses) 6,283,236 - 2,841,000 9,124,236 NET CHANGE IN FUND BALANCES 3,573,823 120,257 598,395 4,292,475 Fund Balances - Beginning of Year 41,582,363 (59,513) 28,743,106 70,265,956 FUND BALANCES - END OF YEAR 45,156,186$ 60,744 $ 29,341,501$ 74,558,431 $

3.a
Packet Pg. 177
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 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, 2023

See accompanying Notes to Financial Statements.
(29)

Net Change In Fund Balances - Total Governmental Funds 4,292,475 $ 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 9,409,265
Depreciation and Amortization (3,360,348)
Loss on Disposal of Capital Assets (89,790)
Pension 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. 11,512,221 The issuance of long term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance cost, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. These amounts are the net effect of these differences in the treatments of long-term debt and related items.

Debt Issued or Incurred:

Accreted Interest (402,497)
Principal Repayments:

Loan Obligations 132,204
Taxable Pension Funding Bonds, Series 2007 1,345,000
Lease Revenue Bonds, 2007 Series B 555,000
Lease Payments 15,991
Subscription Payments 19,185
Bond Defeasance Amortization (12,550)
Bond Premium and Discount Amortization (1,735)
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 46,209
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. (310,283)
OPEB expenditures reported in the governmental funds includes the actual payments contributions.

In the Statement of Activities, OPEB expense includes the change in the net OPEB liability and related change in OPEB amounts for deferred outflows deferred inflows of resources. (1,945,092) 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. 74,447
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. 1,076,783 Change in Net Position of Governmental Activities 22,356,485$

3.a
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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

(30)

THIS PAGE INTENTIONALLY LEFT BLANK

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Packet Pg. 179
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

BUDGETARY COMPARISON STATEMENT BY DEPARTMENT

GENERAL FUND
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Financial Statements.
(31)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 41,582,363$ 41,582,363 $ 41,582,363 $ - $

RESOURCES (INFLOWS)
Taxes 14,215,000 14,535,000 15,142,416 607,416 Sales Taxes 13,992,000 15,992,000 16,432,934 440,934 Other Taxes 3,762,170 3,762,170 3,915,070 152,900 Licenses and Permits 2,137,114 2,184,114 2,404,931 220,817 Intergovernmental 1,415,081 1,417,481 1,486,828 69,347 Charges for Services 1,892,248 2,083,983 2,512,089 428,106 Investment Income (Loss) 1,605,000 2,513,000 2,224,361 (288,639) Fines and Forfeitures 571,000 563,500 636,057 72,557 Miscellaneous 1,515,500 1,592,820 1,050,893 (541,927) Transfers In 10,500,000 8,957,203 8,741,415 (215,788) Amounts Available for Appropriations 93,187,476 95,183,634 96,129,357 945,723

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Current:

General Government:

City Council 238,529 249,662 192,009 57,653 City Clerk 460,630 452,829 315,704 137,125 City Manager 1,115,359 1,092,555 919,336 173,219 Human Resources 2,712,809 2,824,966 2,112,630 712,336 Financial Services 3,404,310 3,482,693 3,047,912 434,781 City Attorney 755,250 755,250 768,188 (12,938) City Treasurer 64,538 67,698 65,761 1,937 Nondepartmental - - 704,368 (704,368) Cost Allocation (9,083,675) (9,083,658) (7,545,001) (1,538,657) Public Safety:

Police 21,925,844 22,700,962 21,022,402 1,678,560 Fire 15,349,622 15,319,509 15,352,322 (32,813) Community Services:

Parks, Recreation, and Family Services 3,985,269 4,689,196 3,995,122 694,074 Community Development 4,744,475 6,226,976 3,699,225 2,527,751 Public Works:

Public Services 3,547,617 3,871,748 3,334,400 537,348 Capital Outlay 443,616 798,438 351,341 447,097 Debt Service:

Principal Retirement 127,401 132,204 166,603 (34,399) Interest and Fiscal Charges 14,959 10,156 12,670 (2,514) Transfers Out 2,442,548 2,493,795 2,458,179 35,616 Total Charges to Appropriations 52,249,101 56,084,979 50,973,171 5,111,808 BUDGETARY FUND BALANCE - END OF YEAR 40,938,375$ 39,098,655 $ 45,156,186 $ 6,057,531 $

3.a
Packet Pg. 180
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

BUDGETARY COMPARISON STATEMENT

ARPA SPECIAL REVENUE
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Financial Statements.
(32)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR (59,513)$ (59,513) $ (59,513) $ - $

RESOURCES (INFLOWS)
Intergovernmental 7,440,000 7,440,700 4,604,270 (2,836,430) Investment Income (Loss) - 244,000 120,257 (123,743) Amounts Available for
Appropriations 7,380,487 7,625,187 4,665,014 (2,960,173)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government - 1,278,028 1,278,028 - Capital Outlay 8,750,050 8,817,259 3,326,242 5,491,017 Total Charges to Appropriations 8,750,050 10,095,287 4,604,270 5,491,017

BUDGETARY FUND BALANCE - END
OF YEAR (1,369,563)$ (2,470,100) $ 60,744 $ 2,530,844$

3.a
Packet Pg. 181
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2023

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
ASSETS
Current Assets:

Cash and Investments 38,200,369 $ 25,280,442 $ 8,898,377 $ 72,379,188 $ 14,767,076 $ Receivables:

Accounts 12,229,479 1,894,486 1,494,624 15,618,589 72,972 Accrued Interest 294,444 148,420 53,639 496,503 78,114 Lease Receivable, Current Portion 401,186 - - 401,186 - Prepaid Items - 780 678 1,458 - Prepaid Bond Insurance - 12,000 - 12,000 - Deposits 2,540,529 - - 2,540,529 - Due from Other Governments - 37,763 1,726 39,489 - Inventories 1,622,471 179,371 - 1,801,842 - Restricted Assets:

Cash and Investments - - - - 107,030 Cash with Fiscal Agent 3,722,910 3,823,367 5,211,100 12,757,377 - Total Current Assets 59,011,388 31,376,629 15,660,144 106,048,161 15,025,192 Noncurrent Assets:

Lease Receivable, Net of Current Portion 7,380,061 - - 7,380,061 - Capital Assets, Not Being Depreciated 3,444,842 9,875,004 2,328,140 15,647,986 113,957 Capital Assets, Net of Accumulated
Depreciation 38,398,138 27,395,655 32,480,543 98,274,336 1,686,294 Total Noncurrent Assets 49,223,041 37,270,659 34,808,683 121,302,383 1,800,251
Total Assets 108,234,429 68,647,288 50,468,827 227,350,544 16,825,443

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 73,257 - - 73,257 - Deferred Amount from OPEB 1,715,837 582,159 674,079 2,972,075 - Deferred Amount from Pensions 3,678,920 1,590,884 1,206,519 6,476,323 - Total Deferred Outflows of Resources 5,468,014 2,173,043 1,880,598 9,521,655 -

3.a
Packet Pg. 182
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2023

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

LIABILITIES
Current Liabilities:

Accounts Payable 2,121,591 $ 2,042,526 $ 894,317 $ 5,058,434 $ 719,535 $ Accrued Interest 209,858 199,674 59,410 468,942 - Deposits Payable 1,210,848 120,980 - 1,331,828 - Accrued Compensated Absences 405,737 191,976 101,037 698,750 52,108 Accrued Claims and Judgments - - - - 2,415,620 Subscription Payable 17,504 17,498 17,498 52,500 - Lease Payable - 4,052 4,052 8,104 - OPEB Liability 244,771 83,047 96,160 423,978 - Bonds and Notes Payable 2,430,000 768,885 599,510 3,798,395 - Total Current Liabilities 6,640,309 3,428,638 1,771,984 11,840,931 3,187,263 Noncurrent Liabilities:

Accrued Compensated Absences - 17,145 - 17,145 20,708 Accrued Claims and Judgments - - - - 5,042,143 Subscription Payable 17,915 17,910 17,910 53,735 - Lease Payable - 35,160 35,159 70,319 - OPEB Liability 5, 447,519 1,848,266 2,140,097 9,435,882 - Net Pension Liability 12,709,282 5,495,906 4,168,070 22,373,258 - Bonds and Notes Payable 15,851,925 16,261,284 5,469,039 37,582,248 - Total Noncurrent Liabilities 34,026,641 23,675,671 11,830,275 69,532,587 5,062,851 Total Liabilities 40,666,950 27,104,309 13,602,259 81,373,518 8,250,114

DEFERRED INFLOWS OF RESOURCES
Amounts Related to Leases 7,815,413 - - 7,815,413 - Deferred Amounts from Pensions 431,343 186,527 141,461 759,331 - Deferred Amount from OPEB 1,103,883 374,532 433,668 1,912,083 - Total Deferred Inflows of Resources 9,350,639 561,059 575,129 10,486,827 -

NET POSITION
Net Investment in Capital Assets 23,598,893 22,172,171 33,733,349 79,504,413 1,595,439 Restricted for Debt Service 3,722,910 - - 3,722,910 - Unrestricted 36,363,051 20,982,792 4,438,688 61,784,531 6,979,890 Total Net Position 63,684,854 $ 43,154,963 $ 38,172,037 $ 145,011,854 8,575,329 $ Prior Years' Accumulated Adjustment to Reflect the
Consolidation of Internal Service Funds Activities
Related to the Enterprise Funds 1,424,687
Current Year's Adjustment to Reflect the
Consolidation of Internal Service Funds
Activities Related to the Enterprise Funds 544,682
Net Position of Business-Type Activities 146,981,223$

3.a
Packet Pg. 183
Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023

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

OPERATING REVENUES
Sales and Service Charges 66,327,789 $ 12,806,899 $ 10,018,902 $ 89,153,590 $ 11,344,815 $ Miscellaneous 3,248,720 371,840 315,626 3,936,186 169 Total Operating Revenues 69,576,509 13,178,739 10,334,528 93,089,776 11,344,984

OPERATING EXPENSES
Salaries and Benefits 6,872,527 3,197,465 2,170,750 12,240,742 1,408,227 Maintenance and Operations 3,664,998 4,610,131 4,593,717 12,868,846 3,539,432 Generation 2,348,568 - - 2,348,568 - Purchased Power 42,765,291 - - 42,765,291 - Contractual Services - - - - 292,582 Claims and Benefits - - - - 4,404,394 Charges from Other Funds 4,792,639 1,233,255 2,159,947 8,185,841 - Depreciation and Amortization Expense 2,651,825 1,025,141 1,502,300 5,179,266 186,480 Total Operating Expenses 63,095,848 10,065,992 10,426,714 83,588,554 9,831,115 OPERATING INCOME (LOSS) 6,480,661 3,112,747 (92,186) 9,501,222 1,513,869

NONOPERATING REVENUES (EXPENSES)
Intergovernmental 73,800 - - 73,800 - Lease Revenue 1,943,191 - - 1,943,191 - Net Investment Income 1,169,017 567,808 326,753 2,063,578 169,846 Interest Expense (666,468) (612,607) (184,086) (1,463,161) - Other Expenses - (2,000) - (2,000) - Gain (Loss) on Disposal of Capital Assets (67,083) 15,500 - (51,583) - Total Nonoperating Revenues
(Expenses) 2,452,457 (31,299) 142,667 2,563,825 169,846 INCOME (LOSS) BEFORE TRANSFERS 8,933,118 3,081,448 50,481 12,065,047 1,683,715 TRANSFERS OUT (8,813,615) (138,719) (109,653) (9,061,987) (62,249) CHANGE IN NET POSITION 119,503 2,942,729 (59,172) 3,003,060 1,621,466 Net Position - Beginning of Year 63,565,351 40,212,234 38,231,209 142,008,794 6,953,863 NET POSITION - END OF YEAR 63,684,854$ 43,154,963 $ 38,172,037 $ 145,011,854 $ 8,575,329 $ Adjustment to Reflect the Consolidation of Internal
Service Fund Activities Related to Enterprise Funds 544,682$ Change in Net Position - Enterprise Funds 3,003,060

CHANGE IN NET POSITION OF BUSINESS-
TYPE ACTIVITIES 3,547,742$

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Financial Statements.
(36)

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 65,699,691 $ 12,925,817 $ 10,111,763 $ 88,737,271 $ 11,272,011 $ Cash Paid to Suppliers for Goods and Services (55,670,059) (4,764,724) (6,356,863) (66,791,646) (8,309,272) Cash Paid to Employees for Services (6,805,674) (3,177,078) (2,169,832) (12,152,584) (1,406,244) Lease Revenue 2,585,711 - - 2,585,711 - Net Cash Provided By
Operating Activities 5,809,669 4,984,015 1,585,068 12,378,752 1,556,495

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Paid to Other Funds (8,813,615) (138,719) (111,379) (9,063,713) (62,249) Grants Received 73,800 - - 73,800 - Net Cash Used by Noncapital
Financing Activities (8,739,815) (138,719) (111,379) (8,989,913) (62,249)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Proceeds from Sale of Capital Assets - 15,500 - 15,500 - Acquisition and Construction of Capital Assets (1,926,430) (7,299,728) (1,596,566) (10,822,724) (331,369) Subscription Payment (18,337) (18,331) (18,331) (54,999) - Lease Payment (2,335) (6,270) (5,399) (14,004) - Principal Paid on Capital Debt (2,320,000) (865,133) (1,126,944) (4,312,077) - Interest Paid on Capital Debt (951,012) (643,783) (202,357) (1,797,152) - Net Cash Used by Capital and
Related Financing Activities (5,218,114) (8,817,745) (2,949,597) (16,985,456) (331,369)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 977,535 457,135 288,343 1,723,013 109,943 Net Cash Provided by Investing
Activities 977,535 457,135 288,343 1,723,013 109,943

NET CHANGE IN CASH AND CASH
EQUIVALENTS (7,170,725) (3,515,314) (1,187,565) (11,873,604) 1,272,820 Cash and Cash Equivalents - Beginning of Year 49,094,004 32,619,123 15,297,042 97,010,169 13,601,286

CASH AND CASH EQUIVALENTS - END
OF YEAR 41,923,279$ 29,103,809 $ 14,109,477 $ 85,136,565 $ 14,874,106 $

CASH AND CASH EQUIVALENTS
Current Cash and Investments 38,200,369 $ 25,280,442 $ 8,898,377 $ 72,379,188 $ 14,767,076 $ Restricted Cash and Investments - - - - 107,030 Restricted Cash with Fiscal Agent 3,722,910 3,823,367 5,211,100 12,757,377 - Total Cash and Cash Equivalents 41,923,279 $ 29,103,809 $ 14,109,477 $ 85,136,565 $ 14,874,106 $

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Financial Statements.
(37)

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 BY

OPERATING ACTIVITIES
Operating Income (Loss) 6,480,661 $ 3,112,747 $ (92,186) $ 9,501,222 $ 1,513,869 $ Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided by
Operating Activities:

Depreciation and Amortization Expense 2,651,825 1,025,141 1,502,300 5,179,266 186,480 Lease Revenue 2,585,711 - - 2,585,711 - Changes in Assets, Deferred Outflows of Resources,
Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease In:

Accounts Receivable (3,736,849) (252,522) (222,765) (4,212,136) (72,972) Prepaid Items 819 1,675 557,705 560,199 - Deposits Receivable (211,515) - - (211,515) - Inventories (179,994) (20,534) - (200,528) - Deferred Amounts from OPEB 283,678 96,248 111,445 491,371 Deferred Amounts from Pension (2,407,558) (1,102,130) (763,979) (4,273,667) - Increase (Decrease) In:

Accounts Payable (1,765,819) 636,126 (5,533) (1,135,226) 79,263 Deposits Payable (139,969) (400) - (140,369) - Claims and Judgments - - - - (152,127) Compensated Absences 66,853 20,387 918 88,158 1,982 OPEB Liability (995,677) (337,819) (391,159) (1,724,655) - Net Pension Liability 5,064,080 2,556,838 1,506,899 9,127,817 - Deferred Amounts from OPEB 1,045,103 354,589
410,576 1,810,268 -
Deferred Amounts from Pension (2,931,680) (1,106,331) (1,029,153) (5,067,164) - Net Cash Provided by
Operating Activities 5,809,669 $ 4,984,015 $ 1,585,068 $ 12,378,752 $ 1,556,495 $

NONCASH INVESTING, CAPITAL, AND

FINANCING ACTIVITIES
Loss on Disposal of Capital Assets
(67,083)$ - $ - $ (67,083)$ - $ Assets Acquired Through Subscription 41,636 $ 41,636 $ 83,272 $ - $

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CITY OF COLTON, CALIFORNIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2023

See accompanying Notes to Financial Statements.
(38)

Private-Purpose
Trust Custodial
Funds Funds
ASSETS
Cash and Investments 2,746,430 $ 478,323 $
Receivables:

Accounts 10,235 -
Taxes - 9,956
Accrued Interest 17,628 3,123
Deposits - 15,783
Restricted Assets:

Cash and Investments 339,414 -
Total Assets 3,113,707 507,185

LIABILITIES
Accounts Payable - 11,532
Accrued Interest 151,931 -
Deposits Payable 230,799 -
Due to Other Governments - 37,763 Long-Term Liabilities:

Due in One Year 1,060,000 -
Due in More than One Year 7,974,107 -
Total Liabilities 9,416,837 49,295

NET POSITION
Held for Other Individuals and Organizations (6,303,130) 457,890 Total Net Position (6,303,130) $ 457,890 $

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CITY OF COLTON, CALIFORNIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Financial Statements.
(39)

Private-Purpose
Trust Custodial
Funds Funds

ADDITIONS
Contributions 42,100 $ - $
Taxes 1,430,065 531,725
Evidence Deposits - 29,494
Interest and Change in Fair Value of Investments 41,683 5,111 Total Additions 1,513,848 566,330

DEDUCTIONS
Return of Deposits - 15,910
Administrative Expenses 5,727 160,640
Professional Services - 205,336 Utilities - 79,671
Principal Payment - 27,272
Interest Expense 282,729 4,294
Contributions to City of Colton - 18,108 Total Deductions 288,456 511,231
CHANGE IN NET POSITION 1,225,392 55,099
Net Position - Beginning of Year (7,528,522) 402,791 NET POSITION - END OF YEAR (6,303,130)$ 457,890 $

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(41)

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

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

A component unit is included in the primary 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 component unit to provide specific financial benefits to, or impose specific financial burdens on, the City.

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

A brief description of each component unit follows:

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

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(42)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Reporting Entity (Continued)
The Colton Utility Authority (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 government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(43)

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 progr am 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.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(44)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statements of net position. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

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

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement 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 other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(45)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

However, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

 General Fund is used to account for sources and uses of financial resources applicable to the general government operation of the City. All general operating revenues and expenditures that are not restricted or accounted for in another fund are recorded in the General Fund.
 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, distribution and transmission of electric energy to residents and businesses located within the City.
 The Water Utility Fund is used to account for the production and distribution of potable water to residents and businesses located within the City.  The Wastewater Utility Fund is used to account for the operation and maintenance of the water reclamation plant and sewage system.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(46)

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 donations made to the City for the Cemetery, and the Successor Agency private purpose trust fund accounts for the assets and liabilities of the former redevelopment agency and its allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former redevelopment agency are paid in full and assets have been liquidated. Custodial funds are used to report fiduciary activities that are not required to be reported in private-purpose trust funds. The City uses the custodial fund to account for various assessment districts for which the City acts as an agent for debt service activity and monies seized by police as evidence.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(47)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. New Accounting Pronouncement Adopted
GASB 96
In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This standard defines a subscription-based information technology arrangement (SBITA); establishes that a SBITA results in a right-to-use subscription asset (an intangible asset) and a corresponding subscription liability; provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and requires note disclosures regarding a SBITA. The City adopted the requirements of the guidance effective July 1, 2022 and has applied the provisions of this standard to the beginning of the fiscal year.

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

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

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

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

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(48)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Receivables and Payables (Continued)
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means then due, or past due and receivable within the current period, and collected within the current period, or expected to be collected soon enough thereafter (not to exceed 60 days), to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 a.m. on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax le vy covers the fiscal period from July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent on August 31.

G. Inventories and Prepaid Items
Inventories of materials and supplies are carried at cost on a moving average basis. The City uses the consumption method of accounting for inventories. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

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

I. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar item s), are reported in the government-wide financial statements. The government defines capi tal assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. 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 extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(49)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Capital Assets (Continued)
Property, plant, and equipment of the primar y government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:

Building and Structures 40 Years
Furniture and Equipment 7 Years
Capacity Rights 55 Years
Intangible 30 Years
Public Domain Infrastructure 50 Years

Right-to-use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus cert ain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term.

SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets

J. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources , represent a consumption of net assets that applies to future periods and will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:

 Deferred loss on refunding, net of accumulated amortization reported in the government wide statement of net position and the proprietary funds financial statements. A deferred loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
 Deferred outflows related to pensions and OPEB equal to employer contributions made after the measurement date of the net pension liability and OPEB liability.  Deferred outflows related to pensi on and OPEB for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB through the plans.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Deferred Outflows/Inflows of Resources (Continued)
 Deferred outflows from pension and OPEB resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pension and OPEB through the plans.
 Deferred outflows related to pensions resulting from the net difference between projected and actual earnings on investments of the pension plan fiduciary net position. These amounts are amortized over five years

In addition to liabilities, the statement of net position and the governmental funds balance sheet reports a separate section for deferred inflows of resources. This separate financial statement 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 (revenue) until that time. The City has the following items that qualify for reporting in this category:

 Deferred inflows from unavailable revenues, which arise only under a modified accrual basis of accounting, are reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources, which are taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.  Deferred inflows from lease receivable is initially measured at the initial amount of the lease 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 period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
 Deferred inflows from OPEB resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with OPEB through the plans.
 Deferred inflows related to pensions for the changes in employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.

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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 other governments or (b) by law through constitutional provisions or enabling legislation.

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

A pension obligation reserve has been established through a resolution approved by the City Council. This reserve is calculated as 50% of the annual excess revenue over expenditures in the General Fund operating expenditures. This reserve has a balance of $23,014,745 as of June 30, 2023.

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 $9,968,525 as of June 30, 2023.

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

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

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

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

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Net Position Classification
In the government-wide financial statements and proprietary fund financial statements, net position is reported in three categories:

Net Investment in Capital Assets – 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 before 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 revenues 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.

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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 Em ployees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of 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 statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

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

Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General Fund, Special Revenue Fund and similar governmental funds. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at 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.

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NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Deficit Fund Balances
The following funds contained deficit fund balances as of June 30, 2023:

Deficit
Amount
Other Governmental Special Revenue Funds:

Community Development Block Grant 69,514 $
Miscellaneous Grants 1,276,520
Private-Purpose Trust Fund:

Successor Agency of the Former RDA 7,416,309

These fund balance deficits will be eliminated as grant reimbursements become available or transfers are made.

NOTE 3 CASH AND INVESTMENTS
Cash and Investments
Cash and investments held by the City at June 30, 2023, are reported in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 171,223,488 $
Restricted:

Cash and Investments 210,327
Cash with Fiscal Agent 15,625,083
Statement of Net Position - Fiduciary Funds:

Cash and Investments 3,224,753
Restricted:

Cash and Investments 339,414
Total Cash and Investments 190,623,065 $

Petty Cash 6,217 $
Deposits with Financial Institutions 7,467,863
Restricted Deposits with Financial Institutions 378,693 Investments 182,770,292
Total Cash and Investments 190,623,065 $

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

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

Federal Farm Credit Banks (FFCB) 5 Years 40% None
Federal Home Loan Banks (FHLB) 5 Years 40% None
Federal Home Loan Mortgage
Corporation (FHLMC) 5 Years 40% None
Federal National Mortgage
Association (FNMA) 5 Years 40% None
Repurchase Agreements 7 Days None None
N/A - Not Applicable

Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee.

Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by a bond trustee.

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

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Local Obligation Bonds None None None
Banker's Acceptances None None None
Certificates of Deposit 1 Year None None
Commercial Paper 180 Days None None
Money Market Mutual Funds None None None
United States Treasury Obligations None None None
United States Government Sponsored
Agency Securities None None None
Guaranteed Investment Contracts None None None

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flows and liquidity needed for operations. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2023, 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 145,075,670 $ - $ - $ 145,075,670$ United States Government Sponsored
Agency Securities:

FHLB 2,087,841 11,685,340 2,395,176 16,168,357 FFCB - 2,889,760 - 2,889,760 Freddie Mac - 2,920,930 - 2,920,930 Money Market Mutual Funds 89,909 - - 89,909 Held by Fiscal Agent:

Money Market Mutual Funds 15,625,666 - - 15,625,666 Total 162,879,086 $ 17,496,030 $ 2,395,176 $ 182,770,292 $

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

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

Total as Minimum Ratings as of Fiscal Year End
of June 30, Legal Not
Investment Type 2023 Rating AAA AA+ Rated
LAIF 145,075,670 $ N/A - $ - $ 145,075,670$ United States Government Sponsored
Agency Securities:

FHLB 16,168,357 N/A - 16,168,357 - FFCB 2,889,760 N/A - 2,889,760 - Freddie Mac 2,920,930 N/A - 2,920,930 - Money Market Mutual Funds 89,909 A - 89,909 Held by Fiscal Agent:

Money Market Mutual Funds 15,625,666 A 15,625,666 - - Total 182,770,292 $ 15,625,666 $ 21,979,047 $ 145,165,579 $

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 16,168,357 $

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.

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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, 2023, 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 t he 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, 2023:

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

FHLB - $ 16,168,357$ - $ 16,168,357$ FFCB - 2,889,760 - 2,889,760 Freddie Mac - 2,920,930 - 2,920,930 Total Leveled Investments - $ 21,979,047$ - $ 21,979,047 LAIF* 145,075,670
Money Market Mutual Funds* 15,715,575
Total Investment Portfolio 182,770,292$
* Not subject to fair value measurements.

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NOTE 4 LONG-TERM RECEIVABLES
Loans and notes receivable consist primarily of loans and advances for development purposes. Included in the Housing Authority are mortgage assistance program loans of $35,564 and other notes receivable of $28,436. The City 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, 2023, 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 $3,605,188 at June 30, 2023.

NOTE 5 LEASE RECEIVABLES
The City, acting as lessor, leases land under long-term, noncancelable lease agreements.

The leases expire at various dates through 2027 and provide for renewal options ranging from three months to six years. Pursuant to these contracts the City’s governmental activities recognized $174,227 and $79,305 in lease revenue and interest revenue, respectively and City’s business-type acti vities recognized $19,104 and $6,768 in lease revenue and interest revenue, respectively during the year ended June 30, 2023.

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NOTE 6 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023, was as follows:

Governmental Activities
Balance at Balance at
July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital Assets, Not Being Depreciated:

Land 15,306,911 $ - $ - $ - $ 15,306,911$ Construction in Progress 9,334,275 8,764,703 (89,789) (3,509,412) 14,499,777 Total Capital Assets, Not
Being Depreciated 24,641,186 8,764,703 (89,789) (3,509,412) 29,806,688 Capital Assets, Being Depreciated and
Amortized:

Structures and Improvements 28,003,876 353,893 - 76,608 28,434,377 Furniture and Equipment 17,389,099 622,038 (22,309) 411,318 18,400,146 Infrastructure 126,190,805 - - 3,021,486 129,212,291 Right to Use Asset - Equipment 39,920 - (39,920) - - Subscription Asset 142,947 - - - 142,947 Total Capital Assets,
Being Depreciated and Amortized 171,766,647 975,931 (62,229) 3,509,412 176,189,761 Less Accumulated Depreciation for:

Structures and Improvements (12,864,894) (714,173) - - (13,579,067) Furniture and Equipment (13,634,894) (779,117) 22,309 - (14,391,702) Infrastructure (89,841,507) (1,999,011) - - (91,840,518) Total Accumulated
Depreciation (116,341,295) (3,492,301) 22,309 - (119,811,287) Less Accumulated Amortization for:

Right to Use Asset - Equipment (23,217) (16,703) 39,920 - - Subscription Asset - (37,825) - - (37,825) Total Lease Assets,
Being Amortized, Net (23,217) (54,528) 39,920 - (37,825)
Total Capital Assets, Being
Depreciated and Amortized, Net 55,402,135 (2,570,898) - 3,509,412 56,340,649 Total Governmental Activities
Capital and Lease Assets, Net 80,043,321$ 6,193,805 $ (89,789) $ - $ 86,147,337$

Depreciation expense was charged in the following functions in the statement of activities for the year ended June 30, 2023, as follows:

General Government 132,234 $
Public Safety 495,873
Community Services 198,349
Public Works 2,479,365
Internal Service Funds 186,480
Total 3,492,301 $

Amortization expense was charged to general government.

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NOTE 6 CAPITAL ASSETS (CONTINUED)
Business-Type Activities
Capital asset activity for the year ended June 30, 2023, was as follows:

Balance at Balance at
July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital Assets, Not Being Depreciated:

Land 6,269,991$ -$ -$
-$
6,269,991$
Construction in Progress 6,852,251 4,644,659 (267,255) (1,851,660) 9,377,995 Total Capital Assets, Not
Being Depreciated 13,122,242 4,644,659 (267,255) (1,851,660) 15,647,986 Capital Assets, Being Depreciated and
Amortized:

Intangible Assets 400,000 - - - 400,000 Structures and Improvements 44,839,405 136,050 - - 44,975,455 Furniture and Equipment 45,747,592 1,963,668 (225,683) 108,333 47,593,910 Capacity Rights 7,300,000 - - - 7,300,000 Infrastructure 124,012,393 4,345,600 (21,939) 1,743,327 130,079,381 Right to Use Asset - Equipment 26,650 83,272 (26,650) - 83,272 Subscription Asset 161,234 - - - 161,234 Total Capital Assets,
Being Depreciated and Amortized 222,487,274 6,528,590 (274,272) 1,851,660 230,593,252 Less Accumulated Depreciation for:

Intangible Assets (64,000)

(8,000) - - (72,000)
Structures and Improvements (30,747,743) (655,030) - - (31,402,773) Furniture and Equipment (31,063,267) (1,347,759) 165,223 - (32,245,803) Capacity Rights (4,114,539) (132,727) - - (4,247,266) Infrastructure (61,340,013) (2,967,238) 15,318 - (64,291,933) T
otal Accumulated
Depreciation (127,329,562) (5,110,754) 180,541 - (132,259,775) Less Accumulated Amortization for:

Right to Use Asset - Equipment (17,279)
(14,768) 26,650 - (5,397)
Subscription Asset -
(53,744) - - (53,744)
Total Accumulated
Amortization (17,279)

(68,512) 26,650 - (59,141)
Total Capital Assets, Being
Depreciated and Amortized, Net 95,140,433 1,349,324 (67,081) 1,851,660 98,274,336 Total Business-Type Activities
Capital and Lease Assets, Net 108,262,675$ 5,993,983$ (334,336)$ -$ 113,922,322$ Depreciatio
n/amortization expense was charged in the following functions in the statement of activities for the year ended June 30, 2023, as follows:

Electric Utility 2,651,825$
Water Utility 1,025,141
Waste Water Utility 1,502,300
Total 5,179,266$

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 7 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS
Interfund receivable and payable balances at June 30, 2023, are as follows:

Due To/From Other Funds
Receivable Payable Amount
General Fund Other Governmental Funds 32,771 $
Other Governmental Funds Other Governmental Funds 1,401 Total 34,172$

The interfund balances were made to cover negative cash balances and other temporary loans at June 30, 2023.

Transfers
Transfers In Transfers Out Amount
General Fund Other Governmental Funds 241,415 $
Electric Utility Enterprise Fund 8,500,000
Other Governmental Funds General Fund 2,458,179
Other Governmental Funds 318,969
Electric Utility Enterprise Fund 313,615
Water Utility Enterprise Fund 138,719
Waste Water Utility Enterprise
Fund 109,653
Internal Service Funds 62,249
Total 12,142,799$

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.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 8 LONG-TERM LIABILITIES
Governmental Activities
Changes in long-term liabilities for the governmental activities for the year ended June 30, 2023, are as follows:

Due Due in
Balance Balance Within More Than
July 1, 2022 Additions Deletions June 30, 2023 One Year One Year City:

Other Debt:

Taxable Pension Funding
Bonds, Series 2007 20,423,685 $ 402,497 $ (1,345,000) $ 19,481,182 $ 1,500,000 $ 17,981,182 $ Direct Borrowings:

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

Compensated Absences 2,327,262 2,528,336 (2,216,071) 2,639,527 2,018,769 620,758 Claims and Judgments
(Note 12) 7,609,890 4,381,287 (4,533,414) 7,457,763 2,415,620 5,042,143 County Memorandum
of Understanding 1,829,298 - - 1,829,298 - 1,829,298 Subscription Liability 142,947 - (19,185) 123,762 71,933 51,829 Lease Liability 15,991 - (15,991) - - - Public Financing Authority:

Other Debt:

Lease Revenue Bonds,
2007 Series B 7,715,000 - (555,000) 7,160,000 580,000 6,580,000 Net Unamortized Premiums
and Discounts (58,879) - 1,735 (57,144) - (57,144) Total Long-Term Liabilities
Governmental Activities 40,274,586 $ 7,312,120 $ (8,815,130) $ 38,771,576 $ 6,723,510 $ 32,048,066 $

Taxable Pension Funding Bonds, Series 2007
Taxable Pension Funding Bonds, Series 2007 in the amount of $31,149,400 were issued in August 2007. The bonds are payable from legally available funds of the City and were issued to pay the normal contributions to CalPERS for fiscal year 2007-08 and to pay the unamortized, unfunded accrued actuarial liability with respect to certain pension benefits of certain City employees under the Retirement Law. The bonds include $28,485,000 term current interest bonds with interest payable semiannually on February 1 and August 1 of each year commencing February 1, 2008, and $2,664,400 capital appreciation bonds payable at maturity. At June 30, 2023, the balance includes $12,550,000 principal and $6,931,182 accreted interest. The bonds have no reserve requirement.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(65)

NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Taxable Pension Funding Bonds, Series 2007 (Continued)
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 10,000 383,912 393,912
2029-2033 510,000 1,846,448 2,356,448 2034-2038 5,970,000 1,184,594 7,154,594 Total 12,550,000 5,635,842 $ 18,185,842 $
Plus: Accreted Interest 6,931,182
Total Taxable Pension
Funding Bonds, Series 2007 19,481,182$

The liability is generally paid from the Taxable Pension Funding Bonds Debt Service Fund.

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1.K. This liability, amounting to $2,639,527 at June 30, 2023, 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 13. The liability of $7,457,763 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, 2023, 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, 2023, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
2024 137,188 $ 5,172 $ 142,360 $
Total 137,188 $ 5,172 $ 142,360 $

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Colton Public Financing Authority Lease Revenue Bonds, 2007 Series B The Lease Revenue Bonds, 2007 Series B in the original issue amount of $13,385,000 were issued for the purpose of financing certain capital improvements for the City and refinancing the Refunding Certificates of Participation, Series 1998 and the Lease Revenue Bonds 2002, Series A. The bonds are limited obligations of the Authority payable from and secured by certain revenues consisting of certain base rental payments with respect to lease property by the City pursuant to a lease agreement dated August 1, 2007, between the City and the Authority. The bonds maturing on or after August 1, 2018, are subject to redemption prior to their respective maturity dates as a whole or in part from prepayments of base rental payment made by the City after August 1, 2017. Interest on the bonds is payable on August 1 and February 1 of each year commencing February 1, 2008, at a rate ranging from

4.0% to 5.0%. A reserve fund for the 2007 Series B Lease Revenue Bonds was established to be equal to the maximum annual debt service for the current period to the final payment, with a minimum requirement of $914,932. At June 30, 2023, a total of $914,932 was held in reserve.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 695,000 203,947 898,947
2029-2033 3,980,000 489,181 4,469,181 Total 7,160,000 $ 1,802,558 $ 8,962,558 $

Subscription Liability
The Entity has entered into subscription based-information technology arrangements (SBITAs) for various software. The SBITA arrangements expire at various dates through 2027 and provide for renewal options.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30, Principal Interest Total
2024 71,933 $ 3,525 $ 75,458 $
2025 16,694 1,786 18,480
2026 17,270 1,210 18,480
2027 17,865 615 18,480
Total 123,762 $ 7,136 $ 130,898 $

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities
Changes in long term liabilities for the business type activities for the year ended June 30, 2023, are as follows:

Due Due in
Balance Balance Within More Than
July 1, 2022 Additions Deletions June 30, 2023 One Year One Year Revenue Bonds:

Colton Utility Authority
Water Revenue:

Bonds, Series 2017 16,245,000 $ - $ (515,000)$ 15,730,000 $ 410,000 $ 15,320,000 $ Unamortized Bond Premium 597,571 - (24,145) 573,426 - 573,426 Colton Utility Authority
Installment Sale Agreement 6,651,099 - (582,550) 6,068,549 599,510 5,469,039 Colton Public Financing
Authority Revenue
Refunding Bonds,
Series 2007A 5,325,000 - (255,000) 5,070,000 265,000 4,805,000 Colton Public Financing
Authority Electric Revenue
Refunding Bonds,
Series 2012A 14,045,000 - (2,065,000) 11,980,000 2,165,000 9,815,000 Unamortized Bond Premium 1,505,604 - (273,679) 1,231,925 - 1,231,925 Total 44,369,274 $ - $ (3,715,374)$ 40,653,900 $ 3,439,510 $ 37,214,390 $

Notes Payable:

Direct Borrowings and Placements:

State of California Water
Resource Control Board 544,394 $ - $ (544,394)$ - $ - $ - $ Note Payable 1,076,875 - (350,132) 726,743 358,885 367,858 Other Long-Term Liabilities:

Compensated Absences 627,737 1,011,758 (923,600) 715,895 698,750 17,145 Subscription Liability 161,234 - (54,999) 106,235 52,500 53,735 Lease Liability 9,155 83,272 (14,004) 78,423 8,104 70,319 Total Long-Term Liabilities
Business-Type Activities 46,788,669$ 1,095,030 $ (5,602,503) $ 42,281,196 $ 4,557,749 $ 37,723,447 $

Colton Utility Authority Water Revenue Bonds, Series 2017 The Colton Utility Authority Water Revenue Bonds, Series 2017 serial and term bonds in the original issue amount of $18,155,000 were issued to (i) refund the remaining outstanding Colton Financing Authority 1998 Water Revenue Bonds, (ii) acquire certain capital improvements for the Water Utility Enterprise Fund, and (iii) to pay certain costs of issuance.

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

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

The term bonds are subject to mandatory sinking account redemption beginning with bonds maturing on March 1, 2038. The 1998 Water Revenue Bonds were redeemed on March 1, 2018. A reserve fund for the 2017 Water Revenue Bonds was established to be equal to the maximum annual debt service for the current period to the final payment, with a minimum requirement of $1,129,119. At June 30, 2023, 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, 2023, total amounts collected exceeded the minimum requirement.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Colton Utility Authority Water Revenue Bonds, Series 2017 (Continued) The annual requirements to amortize the indebtedness as of June 30, 2023, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 475,000 526,769 1,001,769
2029-2033 2,750,000 2,263,945 5,013,945 2034-2038 3,280,000 1,737,737 5,017,737 2039-2043 3,860,000 1,154,550 5,014,550 2044-2047 3,645,000 371,600 4,016,600 Total 15,730,000 $ 8,355,427 $ 24,085,427 $

Colton Utility Authority Installment Sale Agreement
In March 2017, the Colton Utility Authority entered into an installment sale agreement that provided funds for (i) the redemption of the Authority’s Revenue Bonds, 2000 Series, (ii) certain capital improvements to the Wastewater Utility Enterprise Fund and (iii) the payment of costs of issuance. The agreement matures through March 2032 and bears interest, payable on March 1 and September 1, at a rate of 2.89%. The agreement is secured solely by and payable from net wastewater revenues and certain funds and accounts held under the agreement.

The annual requirements to amortize the indebtedness as of June 30, 2023, including interest are as follows:

Year Ending June 30, Principal Interest Total
2024 599,510 $ 171,047 $ 770,557 $
2025 616,962 153,594 770,556
2026 634,921 135,635 770,556
2027 653,404 117,152 770,556
2028 672,425 98,131 770,556
2029-2032 2,891,327 190,998 3,082,325 Total 6,068,549 $ 866,557 $ 6,935,106 $

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 8 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 $628,639. At June 30, 2023, 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, 2023, total amounts collected exceeded the minimum requirement.

Pledged Revenues
The City has pledged future electric utility revenues to repay revenue bonds. At June 30, 2023, $5,070,000 remains outstanding to be repaid by future electric revenues, if such revenues prove insufficient. For the fiscal year ended June 30, 2023, the net revenue available for service of all debt was $9,132,486. The debt principal and interest paid in fiscal year 2022- 2023 equals $503,264 (5.51% of available pledged net revenues).

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest are as follows:

Year Ending June 30, Principal Interest Total
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 315,000 185,808 500,808
2029-2033 1,820,000 692,160 2,512,160 2034-2037 1,795,000 218,026 2,013,026 Total 5,070,000 $ 1,970,401 $ 7,040,401 $

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 8 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 issuance related to the 2012 Bonds. The bonds are secured primarily by a pledge, charge and lien upon facilities revenues and a pledge of all the moneys in the Purchase Payment Account and Reserve Account. The bonds mature beginning April 1, 2013 through April 1, 2028 and bear interest, payable April 1 and October 1, at rates from 2.00% to 5.00%. A reserve fund for the 2012 Series A Revenue Refunding Bonds was established to be equal to the maximum annual debt service for the current period to the final payment, with a minimum requirement of $2,770,750. At June 30, 2023, a total of $2,878,320 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, 2023, total amounts collected exceeded the minimum requirement.

Pledged Revenues
The City has pledged future electric utility revenues to repay revenue bonds. At June 30, 2023, $11,980,000 remains outstanding to be repaid by future electric revenues, if such revenues prove insufficient. For the fiscal year ended June 30, 2023, the net revenue available for service of all debt was $9,132,486. The debt principal and interest paid in fiscal year 2022- 2023 equals $2,767,250 (30.30% of available pledged net revenues).

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 2,635,000 131,750 2,766,750
Total 11,980,000 $ 1,855,500 $ 13,835,500 $

State of California Water Resources Control Board
In March 1998, the state of California, acting by and through the State of California Water Resources Control Board, entered into a loan agreement with the City that provided for the expansion and renovation of the sewer facility. The agreement provided for a loan amount not to exceed $8,114,108 with repayments to begin upon completion of the project and bears interest at a rate of 2.5%. the loan was paid off during the fiscal year.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 8 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, 2023, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
2024 358,885 $ 18,169 $ 377,054 $
2025 367,858 9,196 377,054
Total 726,743 $ 27,365 $ 754,108 $

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1.K. This liability, amounting to $715,895 at June 30, 2023, 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 leaseS expire at various dates through 2032. Principal and interest requirements to maturity under lease agreements are as follows:

Year Ending June 30, Principal Interest Total
2024 8,104 $ 2,740 $ 10,844 $
2025 8,405 2,439 10,844
2026 8,719 2,125 10,844
2027 9,044 1,800 10,844
2028 9,381 1,463 10,844
2029-2032 34,770 2,277 37,047 Total 78,423 $ 12,844 $ 91,267 $

Subscription Liability
The Entity has entered into subscription based-information technology arrangements (SBITAs) for various software. The SBITA arrangements expire at various dates through 2025 and provide for renewal options.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30, Principal Interest Total
2024 52,500 $ 2,500 $ 55,000 $
2025 53,735 1,265 55,000
Total 106,235 $ 3,765 $ 110,000 $

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 9 PENSION PLANS
The following is a summary of pension related items for the year ended June 30, 2023:

Deferred Deferred Pension
Pension Outflows Inflows Expense
Liability of Resources of Resources (Credit)
Miscellaneous 51,267,779 $ 14,840,336 $ (1,739,988) $ 5,145,984 $ Safety 73,092,173 29,282,940 (3,361,082) (4,076,504) Total 124,359,952 $ 44,123,276 $ (5,101,070) $ 1,069,480 $

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 death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 9 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, 2023, are summarized as follows:

Miscellaneous
Prior to On or After
Hire Date June 1, 2012 January 1, 2013
Benefit Formula 2.5%@55 2%@62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 - 67 52 - 67
Monthly Benefits, as a % of Eligible Compensation 1.426% to 2.418% 1.0% to 2.5% Required Employee Contribution Rates 8% 6.25%
Required Employer Contribution Rates:

Normal Cost Rate 10.790% 6.250%
Payment of Unfunded Liability 3,899,837 $ - $

Safety - Police
Tier I Tier II Tier III - PEPRA
Prior to On or After On or After
Hire Date October 15, 2011 October 15, 2011 January 1, 2013 Benefit Formula 3%@50 3%@55 2.7%@57
Benefit Vesting Schedule 5 Years of Servic e 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life M onthly for Life Monthly for Life Retirement Age 50 50 - 55 50 - 57
Monthly Benefits, as a % of Eligible
Compensation 3.0% 2.4% to 3.0% 2% to 2.7%
Required Employee Contribution Rates 9.000% 9.000% 13.750% Required Employer Contribution Rates:

Normal Cost Rate 25.640% 23.680% 13.660%
Payment of Unfunded Liability 2,770,803 $ 2,902 $ 11,604 $

Safety - Fire
Tier I Tier II Tier III - PEPRA
Prior to On or After On or After
Hire Date October 15, 2011 October 15, 2011 January 1, 2013 Benefit Formula 3%@50 3%@55 2.7%@57
Benefit Vesting Schedule 5 Years of Servic e 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life M onthly for Life Monthly for Life Retirement Age 50 50 - 55 50 - 57
Monthly Benefits, as a % of Eligible
Compensation 3.0% 2.0% to 2.7% 2% to 2.7%
Required Employee Contribution Rates 9.000% 9.000% 13.750% Required Employer Contribution Rates:

Normal Cost Rate 25.640% 23.680% 13.660%
Payment of Unfunded Liability 2,448,932 $ 7,701 $ 13,782 $

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 9 PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Employees Covered
At the measurement date ended June 30, 2022, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Miscellaneous
Inactive Employees or Beneficiaries Currently
Receiving Benefits 398
Inactive Employees Entitled to but Not Yet
Receiving Benefits 290
Active Employees 202
Total 890

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, 2023, included $5,446,161 for the City’s Miscellaneous Plan and $7,345,741 for the City’s Safety Plan resulting in a total amount paid of $12,792,454.

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

B. Net Pension Liability
The City’s net pension liability for each plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the plans is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 9 PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2021, actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date: June 30, 2021 June 30, 2021
Measurement Date: June 30, 2022 June 30, 2022
Actuarial Cost Method: Entry-Age Normal Entry-Age Normal Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Projected 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 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates includes include generational mortality improvement using 80% of Scale MP-2020 published by the 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 November 2021 that can be found on the CalPERS website.
(3) The less of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% 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.

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NOTE 9 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
Strategic Real Return
Asset Class (a) Allocation (a) (b)
Global Equity - Cap-Weighted 30.00% 1.45%
Global Equity - Non-Cap-Weighted 12.00 3.84%
Private Equity 13.00 7.28%
Treasury 5.00 0.27%
Mortgage-Backed Securities 5.00 0.50%
Investment Grade Corporates 10.00 1.56%
High Yield 5.00 2.27%
Emerging Market Debt 5.00 2.45%
Private Debt 5.00 3.57%
Real Assets 15.00 3.21%
Leverage -5.00 -0.59%
Total 100.00%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

Discount Rate
The discount rate used to measure the total pension liability was 6.9%. 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 re quired 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.

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NOTE 9 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, 2022, are as follows:

Increase (Decrease)
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2021
(Measurement Date) 166,443,154 $ 136,236,904 $ 30,206,250 $ Changes in the Year:

Service Cost 2,577,952 - 2,577,952 Interest on the Total Pension
Liability 11,460,267 - 11,460,267 Differences Between Expected -
and Actual Experience (2,794,232) - (2,794,232) Changes in Assumptions 5,527,613 - 5,527,613 Net Plan to Plan Resource
Movement - 216 (216) Contribution - Employer - 5,025,421 (5,025,421) Contribution - Employee - 1,029,715 (1,029,715) Net Investment Income - (10,260,414) 10,260,414 Administrative Expenses - (84,867) 84,867 Benefit Payments, Including
Refunds of Employee
Contributions (8,749,364) (8,749,364) - Net Changes 8,022,236 (13,039,293) 21,061,529 Balance at June 30, 2022
(Measurement Date) 174,465,390 $ 123,197,611 $ 51,267,779 $

Proportionate Share of Net Pension Liability
As of measurement date June 30, 2022, 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 73,092,173 $

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NOTE 9 PENSION PLANS (CONTINUED)
C. Changes in the Net Pension Liability (Continued)
Proportionate Share of Net Pension Liability (Continued) The City’s net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the plans is measured as of June 30, 2022, and the total pension liability for each plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Safety Plan as of measurement dates ended June 30, 2021 and 2022, were as follows:

Safety
Proportion - June 30, 2021 1.24853%
Proportion - June 30, 2022 1.06369%
Change - Increase (Decrease) -0.18484%

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each plan, calculated using the discount rate for each plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 74,638,887 $ 103,337,533 $
Current Discount Rate 6.90% 6.90%
Net Pension Liability 51,267,779 $ 73,092,173 $
1% Increase 7.90% 7.90%
Net Pension Liability 32,048,456 $ 48,373,424 $

Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

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NOTE 9 PENSION PLANS (CONTINUED)
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2023, the City recognized pension expense of $5,145,984 and pension credit of $4,076,504 for the Miscellaneous and Safety Plans, respectively.

At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Safety
Deferred Deferred Deferred Deferred
Outflows Inflows Outflows Inflows
of Resources of Resources of Resources of Resources
Pension Contributions Subsequent
to Measurement Date 5,446,713 $ - $ 7,345,741$ - $ Differences Between Expected
and Actual Experience - (1,739,988) 3,025,020 (793,723) Change in Assumptions 3,224,441 - 7,369,904 - Change in Employer's Proportion
and Differences Between the
Employer's Contributions and the
Employer's Proportionate Share
of Contributions - - - (2,567,359) Net Differences Between Projected
and Actual Earnings on Plan
Investments 6,169,182 - 11,542,275 - Total 14,840,336 $ (1,739,988) $ 29,282,940 $ (3,361,082) $

Amounts of $5,446,713 and $7,345,741 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, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending June 30, Miscellaneous Safety
2024 2,012,241 $ 5,001,371 $
2025 1,324,893 3,933,517
2026 406,253 2,600,295
2027 3,910,248 7,040,934
2028 - -
Thereafter - -

E. Payable to the Pension Plans
At June 30, 2023, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2023.

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NOTE 10 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, 2022, measurement date, the following current and former employees were covered by the benefit terms under the plan:

Inactive Employees or Beneficiaries Currently
Receiving Benefits 141
Active Employees 287
Total 428

Total OPEB Liability
The City’s OPEB liability of $43,098,767 was measured as of June 30, 2022, and was determined by an actuarial valuation as of June 30, 2022.

Actuarial Assumptions and Other Inputs
The total OPEB liability as of June 30, 2022, 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, 2022
Measurement Date: June 30, 2022
Actuarial Cost Method: Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 3.77%
Inflation 2.50%
Projected Salary Increase 3.00% per annum, in aggregate Healthcare Cost Trend Rates 6.8% decreasing to 3.9% by 2075 Pre-Retirement Turnover Derived from CalPERS pension plan Mortality Derived from CalPERS pension plan updated
to reflect most recent experience study

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NOTE 10 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 3.77% at measurement date June 30, 2022.

Change in Assumption
Discount rate was changed from 2.09% to 3.77%.

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, 2021
(Measurement Date) 50,637,466 $
Changes in the Year:

Service Cost 2,473,079
Interest on the Total OPEB Liability 1,089,284
Changes in Assumptions (9,520,890)
Changes in Benefit Terms -
Plan Experience 403,187
Benefit Payments (1,983,359)
Net Changes (7,538,699)
Balance at June 30, 2022
(Measurement Date) 43,098,767 $

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate for the Plan, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

1% Decrease Discount Rate 1% Increase
(2.77%) (3.77%) (4.77%)
Total OPEB Liability 48,794,193 $ 43,098,767 $ 38,389,348 $

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NOTE 10 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
(5.80%) (6.80%) (7.80%)
Total OPEB Liability 38,604,602 $ 43,098,767 $ 48,870,018 $

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $4,375,339. At June 30, 2023, 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 1,853,266 $ - $
Differences Between Expected and Actual
Experience 3,370,452 -
Change in Assumptions 7,767,616 (8,357,968)
Total 12,991,334 $ (8,357,968) $

An amount of $1,853,266 reported as deferred outflows of resources 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, 2024.

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
2024 1,142,615 $
2025 1,200,320
2026 1,200,320
2027 846,893
2028 (37,358)
Thereafter (1,572,690)

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NOTE 11 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, 2023, the Electric Fund made payments totaling $9,409,674 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 11 municipal electric utilities and one public district of the state of California, which serves the electric power needs of their Southern California electricity customers. SCPPA, a public entity organized under the laws of the state of California, was formed by a joint powers agreement dated November 1, 1980, pursuant to the joint exercise of powers act of the state of California. SCPPA was created for the purpose of planning, financing, developing, acquiring, constructing, operating and maintaining projects for the generation and transmission of electric energy for sale to its participants. The joint powers agreement has a term expiring in 2030 or such later date as all bonds and notes of SCPPA and the interest thereon have been paid in full or adequate provisions for payments have been made. A copy of SCPPA’s audited financial statements can be reviewed on their website at www.scppa.org or can be obtained by written request at 225 South Lake Avenue, Suite 1250, Pasadena, CA 91101.

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NOTE 11 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, 2023, 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 220,510 $ 68,770 $ 4.31% 9,504 $ 2,964 $ Natural Gas Projects:

Natural Gas Pinedale Project 1,377 418 100.00% 1,377 418 Natural Gas Barnett Project 2,848 865 100.00% 2,848 865 Prepaid Natural Gas:

Project No. 1 258,460 94,032 10.76% 27,802 10,115 Total Bonds Payable 41,531$ 14,362 $

The City’s interests in various SCPPA projects are described as follows:

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

Since inception of the ANPP HVS capital additions, new terminations and other events have successively changed the respective ownership interest in the ANPP HVS. In the fiscal year ended June 30, 2011, the PVNGS fourth transformer became the 14 th
termination in the ANPP HVS and caused SCPPA’s proportional ownership percentage to change from 5.56% to 5.44%. This change became effective April 1, 2011.

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

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

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.

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NOTE 11 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Southern California Public Power Authority (Continued)
Generation Projects (Continued)
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.

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.

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NOTE 11 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Southern California Public Power Authority (Continued)
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.

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.

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NOTE 11 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
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.

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

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

During the fiscal year 2022-2023, the City made the annual payment of $318,349, which is included in the maintenance and operations expense in the Wastewater Utility Enterprise Fund.

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NOTE 13 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. In fiscal year 2022/2023 the City of Colton joined the Public Entity Risk Management Authority ( PERMA) risk pool which has resulted in significant changes to both the workers compensation and liability programs. The City has 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 the new PERMA program as well as internal service funding, the self-insurance funds provide coverage for up to a maximum of $500,000 for all city employees compensation claims and $50 million for each general liability claim and fully insures other risks through purchase of hybrid PERMA risk pool programs, and 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 $500,000 per occurrence including law enforcement occurrence. There is excess liability coverage of $50 million for amounts above the $500,000 self-insured retention (SIR).

Workers’ Compensation: The City is self-i nsured for workers’ compensation risk up to $500,000 per occurrence for all employees. Excess coverage is in place for amounts above the $500,000 for all employees.

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 $2 million per occurrence for loss of money and securities caused by employees and or others.

Cyber Liability: The City has SIR for up to $50 thousand and purchases insurance for up to $2 million.

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

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

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(89)

NOTE 13 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 $3,801,578 and $3,656,185 for the general liability claims and workers’ compensation claims, respectively, for a total of $7,457,763.

A reconciliation of changes in aggregate liabilities for claims for the last two fiscal years is as follows:

2023 2022
Beginning-Year Liability 7,609,890 $ 8,313,364 $
Current-Year Claims and Changes in Estimates 4,381,287 2,548,295 Claim Payments (4,533,414) (3,251,769)
Balance at Fiscal Year End 7,457,763 $ 7,609,890 $

There have been no significant changes in insurance coverage from the prior year. During the past three fiscal years, the amount of settlements has not exceeded the amount of insurance coverage.

The City is a member of the Public Entity Risk Management Authority (PERMA), a public entity risk pool operating as a common risk management and insurance program. The City continues to carry commercial insurance, both primary and excess, for all other risks of loss.

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 14 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 1,757,953 $

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023

(90)

NOTE 14 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, 2023, is as follows:

Due Due in
Balance Balance Within More Than
June 30, 2022 Additions Deletions June 30, 2023 One Year One Year Tax Allocation Bonds:

Refunding Bonds,
Series 2015 9,075,000 $ - $ (1,215,000)$ 7,860,000 $ 1,060,000 $ 6,800,000 $ Unamortized Discounts 1,261,078 - (86,971) 1,174,107 - 1,174,107 Total 10,336,078 $ - $ (1,301,971)$ 9,034,107 $ 1,060,000 $ 7,974,107 $

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

At June 30, 2023, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
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 970,000 111,388 1,081,388
2029-2033 1,200,000 335,919 1,535,919 2034-2037 1,110,000 91,000 1,201,000 Total 7,860,000 $ 1,552,879 $ 9,412,879 $

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

(91)

REQUIRED SUPPLEMENTARY INFORMATION

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA
SCHEDULE OF CITY’S PROPORTIONATE SHARE IN THE NET PENSION LIABILITY

AND RELATED RATIOS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *

(92)

Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Measurement Period June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 City's Proportion of the Net
Pension Liability 1.24853% 1.24853% 0.95962% 0.94376% 0.933270% City's Proportionate Share of the
Net Pension Liability 79,092,173 $ 43,817,132 $ 63,933,056 $ 58,914,788 $ 54,759,875 $ City's Covered Payroll 9,989,252 $ 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 791.77% 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% 79.04% 68. 91% 75.26% 75.26% Plan's Proportionate Share of Aggregate
Employer Contributions 8,828,110 $ 8,828,110 $ 7,334,118 $ 6,142,392 $ 5,726,963 $ 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.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate and long-term rate of return decreased from 7.15% to 6.9% and the inflation rate decreased from

2.5% to 2.3%
* Fiscal year 2015 was the first year of implementation, therefore only nine years are shown.

Safety

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA
SCHEDULE OF CITY’S PROPORTIONATE SHARE IN THE NET PENSION LIABILITY

AND RELATED RATIOS (CONTINUED)
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.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate and long-term rate of return decreased from 7.15% to 6.9% and the inflation rate decreased from

2.5% to 2.3%
* Fiscal year 2015 was the first year of implementation, therefore only nine years are shown.

3.a
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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *

(94)

Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Contractually Required Contribution
(Actuarially Determined) 7,345,741 $ 6,665,476 $ 5,958,971 $ 5,255,476 $ 4,437,898 $ Contributions in Relation to
the Contractually Required
Contributions (7,345,741) (6,665,476) (5,958,971) (5,255,476) (4,437,898) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ City's Covered Payroll 10,599,582 $ 9,989,252 $ 9,590,910 $ 8,620,874 $ 9,579,273 $ Contributions as a Percentage
of Covered Payroll 69.30% 66.73% 62.13% 60.96% 46.33%
Notes to Schedule:

Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.625% 2.625% 2.625% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 7.25% (3) 7.25% (3) 7.25% (3) 7.375% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) Classic: 50-67 and PEPRA: 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 nine years are shown.

Safety

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 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 Contractually 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
Salary Increases
Investment Rate of Return
Retirement Age
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 Age Entry Age Entry Age Entry 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) Classic: 50-67 and PEPRA: 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 nine years are shown.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 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, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Measurement Period June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total Pension Liability:

Service Cost 2,577,952 $ 2,386,656 $ 2,461,858 $ 2,493,798 $ 2,509,394 $ Interest on Total Pension Liability 11,460,267 11,314,393 11,011,405 10,683,159 10,127,309 Differences Between Expected and
Actual Experience (2,794,232) (843,481) (838,202) 2,325,332 1,242,908 Changes in Assumptions 5,527,613 - - - (759,649) Changes in Benefits - - - - - Benefit Payments, Including Refunds of
Employee Contributions (8,749,364) (8,615,641) (8,093,554) (7,370,298) (6,989,911) Net Change in Total Pension Liability 8,022,236 4,241,927 4,541,507 8,131,991 6,130,051 Total Pension Liability - Beginning of Year 166,443,154 162,201,227 157,659,720 149,527,729 143,397,678 Total Pension Liability - End of Year (a) 174,465,390 $ 166,443,154 $ 162,201,227 $ 157,659,720 $ 149,527,729 $ Plan Fiduciary Net Position:

Net Plan to Plan Resource Movement 216 $ - $ - $ - $ (249)$ Miscellaneous Expenses - - - 249 (302,584) Contributions - Employer 5,025,421 4,590,979 4,112,145 3,464,809 2,954,354 Contributions - Employee 1,029,715 992,202 1,020,294 1,090,119 1,076,405 Net Investment Income (10,260,414) 25,531,661 5,522,127 6,981,787 8,526,707 Benefit Payments (8,749,364) (8,615,641) (8,093,554) (7,370,298) (6,989,911) Administrative Expense (84,867) (113,731) (157,114) (76,613) (159,337) Net Change in Plan Fiduciary Net Position (13,039,293)
22,385,470 2,403,898 4,090,053 5,105,385 Plan Fiduciary Net Position - Beginning of Year 136,236,904 113,851,434 111,447,536 107,357,483 102,252,098 Plan Fiduciary Net Position - End of Year (b) 123,197,611 $ 136,236,904 $ 113,851,434 $ 111,447,536 $ 107,357,483 $ Net Pension Liability - Ending (a)-(b) 51,267,779 $ 30,206,250 $ 48,349,793 $ 46,212,184 $ 42,170,246 $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 70.61% 81.85% 70.19% 70.69% 71.80% Covered Payroll 13,808,165 $ 13,598,995 $ 12,886,815 $ 13,638,600 $ 13,726,400 $ Net Pension Liability as Percentage of
Covered Payroll 371.29% 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.

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

The discount rate and long-term rate of return decreased from 7.15% to 6.9% and the inflation rate decreased from 2.5% to 2.3% * Fiscal year 2015 was the first year of implementation, therefore only nine years are shown.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

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

(97)

Fiscal Year Ended
Measurement Period
Total Pension Liability:

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

Net Plan to Plan Resource Movement
Miscellaneous Expenses
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments
Administrative Expense
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning of Year
Plan Fiduciary Net Position - End of Year (b)
Net Pension Liability - Ending (a)-(b)
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
Covered Payroll
Net Pension Liability as Percentage of
Covered Payroll
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.

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

The discount rate and long-term rate of return decreased from 7.15% to 6.9% and the inflation rate decreased from 2.5% to 2.3% * Fiscal year 2015 was the first year of implementation, therefore only nine years are shown.

3.a
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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS *

(98)

Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Contractually Required Contribution
(Contractually Required) 5,446,713 $ 5,023,161 $ 4,593,240 $ 4,114,285 $ 3,452,712 $ Contributions in Relation to
the Contractually Required
Contributions (5,446,713) (5,023,161) (4,593,240) (4,114,285) (3,452,712) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ Covered Payroll 14,370,768 $ 13,808,165 $ 13,598,995 $ 12,886,815 $ 13,638,600 $ Contributions as a Percentage
of Covered Payroll 37.90% 36.38% 33.78% 31.93% 25.32%
Notes to Schedule:

Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.625% 2.625% 2.625% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 7.25% (3) 7.25% (3) 7.25% (3) 7.375% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) Classic: 50-67 and PEPRA: 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 nine years are shown.

Miscellaneous

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 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 Contractually 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
Salary Increases
Investment Rate of Return
Retirement Age
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 Age Entry Age Entry Age Entry Age
(1) (1) (1) (1)
Fair Value Fair Valu e 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) Classic: 50-67 and PEPRA: 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 nine years are shown.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 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, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Date June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total OPEB Liability:

Service Cost 2,473,079 $ 2,328,012 $ 1,921,819 $ 1,233,655 $ Interest on Total OPEB Liability 1,089,284 1,134,611 1,288,268 1,097,960 Differences Between Expected and Actual
Experience - - - 6,245,865 Changes in Assumptions (9,520,890) 6,042,181 3,874,473 1,968,572 Changes in Benefit Terms - (2,106,047) - - Plan Experience 403,187 41,105 - - Benefit Payments, Including Refunds of
Member Contributions (1,983,359) (1,949,639) (1,825,760) (1,588,495) Net Change in Total OPEB Liability (7,538,699) 5,490,223 5,258,800 8,957,557 Total OPEB Liability - Beginning of Year 50,637,466 45,147,243 39,888,443 30,930,886 Total OPEB Liability - Ending (a)-(b) 43,098,767 $ 50,637,466 $ 45,147,243 $ 39,888,443 $ Covered - Employee Payroll 23,797,417 $ 23,189,905 $ 22,391,564 $ 23,216,582 $ Total OPEB Liability as Percentage of
Covered - Employee Payroll 181.11% 218.36% 201.63% 171.81% Notes to Schedule:

No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75.

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%
From fiscal year June 30 2022 to June 30, 2023:

The discount rate was increased from 2.09% to 3.77%
* Fiscal year 2018 was the first year of implementation and therefore only six years are shown.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS (CONTINUED)

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, 2019 June 30, 2018
June 30, 2018 June 30, 2017
1,197,722$ 1,308,041 $
1,051,619 916,545
- -
(346,225) (1,977,837)
- -
- -
(1,408,943) (1,322,951)
494,173 (1,076,202)
30,436,713 31,512,915
30,930,886$ 30,436,713 $
23,026,018$ 22,544,876 $
134.33% 135.01%

Notes to Schedule:

No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75.

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%
From fiscal year June 30 2022 to June 30, 2023:

The discount rate was increased from 2.09% to 3.77%
* Fiscal year 2018 was the first year of implementation and therefore only six years are shown.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

(103)

SUPPLEMENTARY INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

OTHER NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023

(105)

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.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

OTHER NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023

(106)

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.

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2023

(108)

Special Revenue Funds
Community
Community Development State
Child Library Block Traffic Asset
Gas Tax Care Grant Grant Relief Seizure
ASSETS
Cash and Investments 52,627 $ 239,467 $ 18,030 $ (26,567) $ 1,708,196 $ 317,769 $ Receivables:

Accounts - 1,072 - 98,692 - - Taxes - - - - 107,800 - Notes and Loans - - - - - - Accrued Interest 128 1,854 112 - 9,673 2,264 Prepaid Items - - - - - - Due from Other Governments 249,107 111,714 - 20,114 - - Due from Other Funds - - 1,401 - - - Land Held for Resale - - - - - - Restricted Assets:

Cash and Investments - - - - - 64,018 Cash and Investments with
Fiscal Agents - - - - - - Total Assets 301,862 $ 354,107 $ 19,543 $ 92,239 $ 1,825,669$ 384,051 $

LIABILITIES
Accounts Payable 24,491 $ 61,897 $ 13,341 $ 18,717 $ 47,417 $ - $ Unearned Revenues - 281,091 - - - - Due to Other Funds - - - 34,172 - - Total Liabilities 24,491 342,988 13,341 52,889 47,417 -

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues - - - 108,864 - - Total Deferred Inflows
of Resources - - - 108,864 - -

FUND BALANCES (DEFICITS)
Restricted:

Public Safety - - - - - 384,051 Capital Projects 277,371 - - - 1,778,252 - Debt Service - - - - - - Education - 11,119 6,202 - - - Affordable Housing - - - - - - Air Quality Projects - - - - - - Unassigned - - - (69,514) - - Total Fund Balances (Deficits) 277,371 11,119 6,202 (69,514) 1,778,252 384,051 Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances 301,862 $ 354,107 $ 19,543 $ 92,239 $ 1,825,669$ 384,051 $

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Attachment: Final City of Colton 2023 ACFR (4362 : FY2022-23 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2023

(109)

ASSETS
Cash and Investments
Receivables:

Accounts
Taxes
Notes and Loans
Accrued Interest
Prepaid Items
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 722,315$ 14,826 $ 1,475,598 $ 1,279,978 $ 4,211,594 $ 399,953 $ - - - - 6,093 - - - - 15,729 - - - - - - - - 4,295 88 8,975 7,963 24,692 2,344 - - - - - - 36,186 - 58,004 - 346,436 - - - - - - - - - - - - - - - - - - - - - - - - - 762,796$ 14,914 $ 1,542,577 $ 1,303,670 $ 4,588,815 $ 402,297 $ -$ - $ 73,278$ 125,953 $ 79,178 $ - $ - - - - - - - - - - - - - - 73,278 125,953 79,178 - - - - - - - - - - - - - - 14,914 - - - - - - 1,469,299 1,177,717 4,509,637 402,297 - - - - - - - - - - - - - - - - - - 762,796 - - - - - - - - - - - 762,796 14,914 1,469,299 1,177,717 4,509,637 402,297 762,796$ 14,914 $ 1,542,577 $ 1,303,670 $ 4,588,815 $ 402,297 $