Colton City Council
January 21, 2025

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 Henry M. Razo

City Manager William R. Smith
City Attorney Carlos Campos
City Clerk Isaac T. Suchil

AGENDA

CITY COUNCIL,

COLTON UTILITY AUTHORITY, COLTON PUBLIC FINANCING AUTHORITY,

COLTON HOUSING AUTHORITY

REGULAR MEETING
TUESDAY, JANUARY 21, 2025 – 5:00 P.M.

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

CLOSED SESSION CALLED TO ORDER

ROLL CALL
PUBLIC COMMENT - Closed Session
This is the portion of the meeting specifically set aside to invite your comments re garding Closed Session items and other general comments about matters not on the agenda; however, any matter that requires action will be referred to staff for investigation and report at a subsequent Council meeting. The Council is prohibited by law from discussing or taking immediate action on items during this public comment period.

Persons desiring to submit paperwork to the City Council Members shall provide a 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.

2 A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Pursuant to Government Code Section 54956.9(d)(1)
Moulas v. City of Colton, et al.

San Bernardino County Superior Court, Case No.CIVSB2401378 B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title - City Attorney

CITY ATTORNEY ORAL REPORT ON CLOSED SESSION ACTIONS

RULES OF DECORUM

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

OPEN SESSION
6:00 P.M.

OPEN SESSION CALLED TO ORDER
INVOCATION Pastor Eric Strutz - The Door Church
FLAG SALUTE Veterans of Foreign Wars (VFW) Vietnam Veteran Tom Leon

ROLL CALL

CEREMONIAL MATTERS
Presentations, Awards, Proclamations
 Retirement Recognition - Lisa Villa

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)

3 AB 1234 ORAL REPORTS
Members of the City Council shall provide brief reports on meetings attended at the expense of the city. (GC Section 53232.3(d))

APPOINTMENTS
 Mayor Pro Tempore Appointment
 City Council Committees & Interagency Appointments

MAYOR AND COUNCIL DISCUSSION ITEMS

PUBLIC HEARINGS

To speak on public hearing items, it is requested that you obtain a card from the City Clerk and complete it by noting the agenda item number, as well as whether you are in favor, opposition or neither, and give it to the City Clerk. The applicant will be allowed 5 minutes to address the Council and all other persons will be allowed 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure. (1) ADU Ordinance Amendment - TIME AND PLACE FIXED TO CONSIDER A PUBLIC HEARING TO INTRODUCE BY TITLE ONLY AN ORDINANCE AMENDING TITLE 18, SECTION 18.48.150 OF THE COLTON MUNICIPAL CODE

RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING

THE ADOPTION OF THE ORDINANCE TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE § 21080.17 (FILE INDEX NO. DAP24-0049), ORDINANCE NO. O-01-25. [Staff Person: Heidi Duron]
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 __________, secon ded by Councilmember _________, the Public Hearing is terminated.

MOTION __________ SECOND __________

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.
(2) FY2023-24 ACFR - Receive and File the FY2023-24 Annual Comprehensive Financial Report (ACFR) and Related Reports.
[Staff Person: Stacey Dabbs]

4 PUBLIC COMMENT Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding Consent Calendar items 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 a 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 Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council votes on the motion, unless councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.

(3) Minutes - Approval of Minutes for the City Council Regular Meeting Held on December 17, 2024, on File in the Office of the City Clerk.
[Staff Person: Stephanie M. Vargas]
(4) Warrants - Approve US Bank voucher dated 11/22/2024 and totaling $64,827.04; voucher numbers 216273 to 216352 dated 11/27/2024 and totaling $91,307.52; voucher numbers 216353 to 216490 dated 12/02/2024 and totaling $915,141.03; voucher numbers 216491 to 216581 dated 12/05/2024 and totaling $4,088,395.52; voucher numbers 216582 to 216665 dated 12/12/2024 and totaling $331,539.87; wires dated 12/14/2024 and totaling $2,902,127.48; voucher numbers 216666 to 216698 dated 12/19/2024 and totaling $439,342.23; a payroll disbursement listing dated 10/26/2024 to 11/08/2024 and totaling $1,157,747.26 and payroll disbursement listing dated 11/09/2024 to 11/22/2024 and totaling $1,333,513.66.
[Staff Person: Stacey Dabbs]
(5) City Treasurer's Report - Receive and File City Treasurer's Report for September 2024. [Former City Treasurer: Aurelio De La Torre]
(6) Change Order - Cat Tracking, Inc. & Pacific Products & Services - Approve and Adopt a Resolution for Change Order No. 2 with Cat Tracking, Inc. and Pacific Products & Services for the FY 24/25 Termed Purchase Order for the Supply of Street Signs, RESOLUTION R-03-25. [Staff Person: Robert DeLoach]
(7) Change Order - West Coast Arborist - Approve Change Order #1 to Service Agreement with West Coast Arborist.
[Staff Person: Robert DeLoach]
(8) Contract Amendment - Bureau Veritas - Approve First (1st) Amendment to Professional Services Agreement (PSA) for Engineering Plan Check Consulting Services with Bureau Veritas North America, Inc. for Fiscal Year 24/25.
[Staff Person: Robert DeLoach]

5 (9) Contract Amendment - ECORP Consulting - Approve First Contract Amendment for Environmental Services with ECORP Consulting Inc., for Pre-Construction Development of Colton Eco-Friendly Park with Community Sports Fields.
[Staff Person: Deb Farrar]
(10) Contract Amendment - GK & Associates - Approve First Amendment to Contract with GK & Associates for the Provision of Engineering Support.
[Staff Person: Robert DeLoach]
(11) Contract Amendment - PBLA Engineering, Inc. - Approve Contract Amendment to PBLA for Project Management Necessary in the Pre Construction Development of Colton Eco Friendly Park with Community Sports Fields.
[Staff Person: Deb Farrar]
(12) Contract Award - Red Hawk Services Inc - Approve Contract Award to Red Hawk Services Inc. for Carnegie Building Fencing.
[Staff Person: Robert DeLoach]
(13) Notice of Completion - Washington Street Bicycle Route Project - Approve a Notice of Completion for the Washington Street Bicycle Route Project.
[Staff Person: Robert DeLoach]
(14) Purchase – Meridian Rapid Defense Group - Approve Purchase with Meridian Rapid Defense Group for Barricades and Trailer in the amount of $125,932.41.
[Staff Person: Deb Farrar]

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

6 I, Stephanie M. Vargas, the Chief 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 Offici al Record, 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 Age nda. 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 lim it time 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 Coun cil 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 willful ly 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 Presi ding 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 council members, staff or the public request that specific items be discussed and/or removed for separate discussions or action.

7 In compliance with the American with Disabilities Act, if you need special assistance to participate in a City Meeting, please contact the City Clerk’s Office at 909-370-5001. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

LEGAL CHALLENGES

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

MANUAL OF PROCEDURE

The City Council adopted its Manual of Procedure pursuant to Resolution No. R-41-18. Copies are available in the Office of the City Clerk.

ITEM NO.

STAFF REPORT

DATE: JANUARY 21, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: BILL SMITH, CITY MANAGER
SUBJECT: MAYOR PRO TEMPORE APPOINTMENT

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Appoint a Council Member to serve as Mayor Pro Tempore for a one-year term, commencing January 2025 and ending January 2026.

BACKGROUND

Since January 2003, the Colton City Council has procedurally appointed one of their Council colleagues to serve a one -year term as Mayor Pro Tempore. This appointment is routinely done at the first meeting in January. The new term is from January 2025 through January 2026. Below, is an account of Council Members previously appointed to serve as Mayor Pro Tempore.

2024 John Echevarria Previous Dist. 4
2023 David Toro Previous Dist. 1
2022 Kenneth Koperski Previous Dist. 3
2021 Ernest Cisneros Previous Dist. 2
2020 Isaac Suchil Previous Dist. 6
2019 Ernest Cisneros Previous Dist. 2
2018 Jack Woods Previous Dist. 5

ISSUES/ANALYSIS
Packet Pg. 8
Staff Report to the Mayor and City Council
Mayor Pro Tempore Appointment
January 21, 2025

During this one-year appointment, in case of the Mayor’s absence due to extended travel, disability, death or other unforeseen circumstances, the duties of Mayor Pro Tempore shall be to presid e at a council meeting; participate in or attend ceremonial and legislative events; and assume other necessary functions representing the City.

FISCAL IMPACTS

None.

ALTERNATIVES

Provide alternative direction to staff.

Packet Pg. 9

ITEM NO. 1

STAFF REPORT

DATE: JANUARY 21, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: HEIDI DURON, DEVELOPMENT SERVICES DIRECTOR SUBJECT: TIME AND PLACE FIXED TO CONSIDER A PUBLIC HEARING TO

INTRODUCE BY TITLE ONLY AN ORDINANCE AMENDING
TITLE 18, SECTION 18.48.150 OF THE COLTON MUNICIPAL CODE

RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR

ACCESSORY DWELLING UNITS AND DETERMINING THE

ADOPTION OF THE ORDINANCE TO BE STATUTORILY EXEMPT
FROM CEQA UNDER PUBLIC RESOURCES CODE § 21080.17 (FILE
INDEX NO. DAP24-0049), ORDINANCE NO. O-01-25.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Staff recommends that the City Council introduce for the first reading and pass by title only:

O-01-25, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COLTON AMENDING TITLE 18, SECTION 18.48.150 OF THE CITY OF COLTON MUNICIPAL

CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY

DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA

1.1 Packet Pg. 10
Staff Report to the Mayor and City Council
Zoning Text Amendment (ADU Ordinance Amendment)
January 21, 2025

BACKGROUND

Pursuant to the State planning and zoning law and the Colton Municipal Code, the Planning Commission must consider the amendments, determine whether they are consistent with the Colton General Plan and the existing Colton Zoning Code and make a recommendation to the City Council.

In recent years, the California Legislature approved, and the Governor signed into law a number of bills (“new ADU Laws”) that, among other things, amended Government Code section 65852.2 and 65 852.22 to impose new limits on local authority to regulate ADUs and Junior ADUs. In 2024, the California Legislature approved, and the Governor signed into law, two new bills — AB 2533 and SB 1211 — that further amend state ADU law as summarized below.

At the December 10, 2024 Planning Commission meeting, after its discussion, the Commission voted 5-0 recommending that the City Council amend section 18.48.150 of the Colton Municipal Code relating to Accessory Dwelling Units and Junior Accessory Dwelling Units and Determining the Ordinance to be exempt from the California Environmental Quality Act (CEQA). (Attachment 1)

ISSUES/ANALYSIS

The proposed ordinance amends the City’s local regulatory requirements for the construction of Accessory Dwelling Unit s (ADUs) and Junior Accessory Dwelling Units (JADUs) to comply with the amended provisions of Government Code sections 65852.2 and 65852.22.

Failure to comply with Government Code sections 65852.2 and 65852.22 (as amended) renders the City’s existing ordi nance regulating ADUs and JADUs (Junior) null and void, thereby limiting the City to the application of the few default standards provided in Government Code sections 65852.2 and 65852.22 for the approval of ADUs and JADUs. The approval of ADUs and JADUs is now based solely on the default statutory standards, without local regulations governing height, setback, landscape, architectural review, among other things, would threaten the character of existing neighborhoods, and negatively impact property values, personal privacy, and fire safety.

The following is a brief summary of the new ADU/JADU Law requirements:

AB 2533 – Unpermitted ADUs and JADUs
Subject to limited exceptions, existing state law prohibits a city from denying a permit to legalize an unpermitted ADU that was constructed before January 1, 2018, if the denial is based on the ADU not complying with applicable building, state, or local ADU standards. One exception allows a city to deny a permit to legalize if the city makes a written finding th at correcting the violation is necessary to protect the health and safety of the public or the occupants of the structure.
4 1.1
Packet Pg. 11
Staff Report to the Mayor and City Council
Zoning Text Amendment (ADU Ordinance Amendment)
January 21, 2025

AB 2533 changes this by: (1) expanding the above prohibition to also include JADUs; (2) moving the construction -cutoff date from Ja nuary 1, 2018, to January 1, 2020; and (3) replacing the above exception with a requirement that local agencies find that correcting the violation is necessary to comply with the standards specified in Health and Safety Code section 17920.3 (Substandard Buildings). (See amended Gov. Code, § 66332(a)–(f).)

SB 1211 – Replacement Parking Requirements; Multifamily ADUs Replacement Parking
Existing state law prohibits the City from requiring off-street parking spaces to be replaced when a garage, carport, or covered parking structure is demolished in conjunction with the construction of, or conversion to, an ADU. SB 1211 amends this prohibition to now also prohibit a city from requiring replacement parking when an uncovered parking space is demolished for or r eplaced with an ADU. (See amended Gov. Code, § 66314(d)(11).)

Multifamily ADUs
SB 1211 further defines livable space in connection with converted ADUs inside a multifamily dwelling structure. Existing state law requires the City to ministerially approve qualifying building-permit applications for ADUs within “portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages ….” Th e term “livable space” is not defined by existing state ADU law. SB 1211 changes this by adding a new definition: “‘Livable space’ means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.” (See amended Gov. Code, § 66313(e).)

SB 1211 also increases the number of detached ADUs that lots with an existing multifamily dwelling can have. Existing state law allows a lot with an existing or proposed multifamily dwelling to have up to two detached ADUs . Under SB 1211, a lot with an existing multifamily dwelling can have up to eight detached ADUs, or as many detached ADUs as there are primary dwelling units on the lot, whichever is less. (See amended Gov. Code, § 66323(a)(4)(A)(ii).) SB 1211 does not alter the number of ADUs that a lot with a proposed multifamily dwelling can have — the limit remains at two. (See amended Gov. Code, § 66323(a)(4).)

Attachment 2 includes the draft ADU ordinance for the City Council to consider. All of the proposed changes are redlined as new language and strike -thru for language to be deleted to the Chapter 18, Section 18.48.150 (Accessory Dwelling Units) of the Municipal Code, substantially in the form attached.

ENVIRONMENTAL REVIEW

Under California Public Resources Code section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law and

1.1 Packet Pg. 12
Staff Report to the Mayor and City Council
Zoning Text Amendment (ADU Ordinance Amendment)
January 21, 2025

which also regulates JADUs, as defined by section 66313. Therefore, the adoption of the proposed ordinance is statutorily exempt from CEQA in that it implements state ADU law.

FISCAL IMPACTS

There is no fiscal impact from proposed zoning text amendment.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. 2024 PC Resolution - Resolution No. R-23-24

2. City Council Draft Ordinance No. O-01-25 - (redline & strike-thru)

3. City Council Draft Ordinance No. O-01-25

1.1 Packet Pg. 13
23152.06300\41318891.2

RESOLUTION NO. R-23-24 1
2 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF 3 COLTON, CALIFORNIA, RECOMMENDING THAT THE CITY 4
COUNCIL ADOPT AN ORDINANCE AMENDING TITLE 18, SECTION 5

18.48.150 OF THE COLTON MUNICIPAL CODE RELATING TO 6
ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY 7
DWELLING UNITS AND DETERMINING THE ADOPTION OF THE 8
ORDINANCE TO BE STATUTORILY EXEMPT FROM CEQA UNDER 9
PUBLIC RESOURCES CODE § 21080.17 (FILE INDEX NO. DAP24-0049) 10 WHEREAS, the Planning and Zoning Law authorizes cities to act by ordinance to 11 provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior 12 accessory dwelling units (“JADUs”); and 13
WHEREAS, in recent years, the California Legislature has approved, and the Governor 14 has signed into law, a number of bills that, among other things, amend various sections of the 15 Government Code to impose new limits on local authority to regulate ADUs and JADUs; and 16 WHEREAS, in 2024, the California Legislature approved, and the Governor signed into 17 law, Assembly Bill 2533 (“AB 2533”) and Senate Bill 1211 (“SB 1211”), which further amend 18 state ADU law; 19
WHEREAS, AB 2533 and SB 1211 take effect on January 1, 2025, and for the City’s 20 ADU ordinance to remain valid, it must be amended to reflect the requirements of AB 2533 and 21 SB 1211; and 22
WHEREAS, the City desires to amend its local regulatory scheme for the construction of 23 ADUs and JADUs to reflect AB 2533’s and SB 1211’s changes to state law; and 24 WHEREAS, on December 10, 2024, the Planning Commission held a duly-noticed public 25 hearing to consider the attached Ordinance; and 26
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. 27 NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF 28 COLTON DOES RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS: 29 SECTION 1. Incorporation. The recitals above are true and correct and are each 30 incorporated by reference and adopted as findings by the Planning Commission. 31 SECTION 2. CEQA. The Planning Commission recommends that the City Council find 32 that, under California Public Resources Code section 21080.17, the California Environmental 33 Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county 34 implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California 35 Government Code, which is California’s ADU law and which also regulates JADUs, as defined 36 by section 66313. Therefore, adoption of the proposed ordinance is statutorily exempt from CEQA 37 in that it implements state ADU law. 38

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Packet Pg. 14
Attachment: 2024 PC Resolution - Resolution No. R-23-24 (4791 : Zoning Text Amendment (ADU Ordinance Amendment)) 23152.06300\41318891.2

2 SECTION 3. General Plan. The Planning Commission hereby finds that the adoption of 1 the Ordinance is consistent with the General Plan as a matter of law under Government Code 2 section 66314(c). 3
SECTION 4. Recommendation. Given the foregoing, and based on the entire record before 4 the Planning Commission, the Planning Commission hereby recommends that the City Council 5 adopt the ordinance attached hereto as Exhibit “A.” 6
7 SECTION 5. Effective Date. This Resolution takes effect immediately upon adoption. 8 9 SECTION 6. Certification; Records. The secretary shall attest as to the adoption of this 10 Resolution and cause the same to be maintained in the permanent records of the City. 11 12 13
14 PASSED, APPROVED AND ADOPTED this 10th day of December, 2024. 15 16 17
18 19
Planning Commission Chairperson 20
Richard Prieto 21
22 23
ATTEST: 24
25 26
27 Planning Commission Secretary 28
Heidi Duron, Development Services Director 29
30 31
I hereby certify that the foregoing is a true copy of a Resolution adopted by the Planning 32 Commission of the City of Colton at a meeting held on December 10, 2024, by the following vote 33 of the Planning Commission: 34
35 AYES: 36
NOES: 37
ABSENT: 38
ABSTAIN: 39
40 41
42 Planning Commission Secretary 43
Heidi Duron, Development Services Director 44
45 46

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Packet Pg. 15
Attachment: 2024 PC Resolution - Resolution No. R-23-24 (4791 : Zoning Text Amendment (ADU Ordinance Amendment)) 23152.06300\41318891.2

3 Exhibit-A 1
2 ORDINANCE NO. O-XX-24 3
AN ORDINANCE AMENDING TITLE 18, SECTION 18.48.150 OF THE COLTON 4 MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR 5 ACCESSORY DWELLING UNITS AND DETERMINING THE ADOPTION OF THE 6 ORDINANCE TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC 7 RESOURCES CODE § 21080.17 (FILE INDEX NO. DAP24-0049) 8 9 WHEREAS, the City Council of the City of Colton desires to amend certain provisions of 10 the Colton Zoning Code to ensure consistency with state law; and 11 12 WHEREAS, state law authorizes cities to act by ordinance to provide for the 13 creation and regulation of accessory dwelling units (“ADUs”) and junior accessory 14 dwelling units (“JADUs”); and 15
16 WHEREAS, in recent years, the California Legislature has approved, and the 17 Governor has signed into law, numerous bills that, among other things, amend various 18 sections of the Government Code to impose new limits on local authority to regulate ADUs 19 and JADUs; and 20
21 WHEREAS, in 2024, the California Legislature approved, and the Governor 22 signed into law, Assembly Bill 2533 (“AB 2533”) and Sena te Bill 1211 (“SB 1211”), 23 which further amend state ADU law; and 24
WHEREAS, AB 2533 and SB 1211 take effect on January 1, 2025, and for the 25 City’s ADU ordinance to remain valid, it must be amended to reflect the requirements of 26 AB 2533 and SB 1211; and 27
WHEREAS, the City desires to amend its local regulatory scheme for the 28 construction of ADUs and JADUs to reflect AB 2533’s and SB 1211’s changes to state 29 law; and 30
WHEREAS, on December 10, 2024, the Planning Commission held a duly-noticed 31 public hearing and considered the staff report, recommendations by staff, and public 32 testimony concerning this proposed Ordinance. Following the public hearing, the Planning 33 Commission voted to forward the Ordi nance to the City Council with a recommendation 34 in favor of its adoption; and 35
WHEREAS, on [INSERT], the City Council held a duly-noticed public hearing to 36 consider the Ordinance, including: (1) the public testimony and agenda reports prepared in 37 connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the 38 consideration and recommendation by the City’s Planning Commission; and 39 WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred. 40 41 1.1.a
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Attachment: 2024 PC Resolution - Resolution No. R-23-24 (4791 : Zoning Text Amendment (ADU Ordinance Amendment)) 23152.06300\41318891.2

4 NOW, THEREFORE , th e City Council of the City of Colton does ordain as 1 follows: 2
SECTION 1. Incorporation. The recitals above are each incorporated by reference 3 and adopted as findings by the City Council. 4
SECTION 2. CEQA. Under California Public Resources Code section 21080.17, 5 the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an 6 ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of 7 Division 1 of Title 7 of the California Government Code, which is California’s ADU law 8 and which also regulates JADUs, as defined by section 66313. Therefore, adoption of the 9 Ordinance is statutorily exempt from CEQA in that it implements state ADU law. 10 SECTION 3. General Plan. The City Council hereby finds that the adoption of the 11 Ordinance is consistent with the General Plan as a matter of law under Government Code 12 section 66314(c). 13
SECTION 4. Code Amendment. Section 18.48.150 – ACCESSORY DWELLING 14 UNITS of the Colton Municipal Code is hereby amended and restated to read in its entirety 15 as provided in Exhibit “A-1,” attached hereto and incorporated herein by reference. 16 SECTION 5. Effective Date. This Ordinance takes effect 30 days after its adoption. 17 SECTION 6 . HCD Submittal . In accordance with Government Code section 18 66326, the City Clerk is directed to submit a copy of this Ordinance to the California 19 Department of Housing and Community Development within 60 days after adoption. 20 SECTION 7. Publication. The City Clerk is di rected to certify to the adoption of 21 this Ordinance and post or publish this Ordinance as required by law. 22 SECTION 8. Custodian of Records. The custodian of records for this Ordinance is 23 the City Clerk and the records comprising the administrative record are located at 650 N. 24 La Cadena Drive, Colton, CA 92324. 25
SECTION 9. Severability. If any provision of this Ordinance or its application to 26 any person or circumstance is held to be invalid by a court of competent jurisdiction, such 27 invalidity has no effect on the other provisions or applications of the Ordinance that can be 28 given effect without the invalid provision or application, and to this extent, the provisions 29 of this Ordinance are severable. The City Council declares that it would have adopted this 30 Ordinance irrespective of the invalidity of any portion thereof. 31 32 33
34 35

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5 Exhibit “A-1” 1
2 SECTION 18.48.150 – ACCESSORY DWELLING UNITS 3
Section 18.48.150 - Accessory Dwelling Units 4
(a) Purpose. The purpose of this section is to allow and regulate accessory dwelling units 5 (ADUs) and junior accessory dwelling units (JADUs) in compliance with California 6 Government Code sections 65852.2 and 65852.22. 7
(b) Effect of Conforming. An ADU or JADU that conforms to the standards in this section 8 will not be: 9
(1) Deemed to be inconsistent with the City’s general plan and zoning designation for 10 the lot on which the ADU or JADU is located. 11
(2) Deemed to exceed the allowable density for the lot on which the ADU or JADU is 12 located. 13
(3) Considered in the application of any local ordinance, policy, or program to limit 14 residential growth. 15
(4) Required to correct a nonconforming zoning condition, as defined in subsection 16 (c)(8) below. This does not prevent the City from enforcing compliance with 17 applicable building standards in accordance with Health and Safety Code section 18 17980.12. 19
(c) Definitions. As used in this section, terms are defined as follows: 20 (1) “Accessory dwelling unit” or “ADU” means an attached or a detached residential 21 dwelling unit that provides complete independent living facilities for one or more 22 persons and is located on a lot with a proposed or existing primary residence. An 23 accessory dwelling unit also includes the following: 24 (A) An efficiency unit, as defined by section 17958.1 of the California 25 Health and Safety Code; and 26
(B) A manufactured home, as defined by section 18007 of the 27 California Health and Safety Code. 28
(2) “Accessory structure” means a structure that is accessory and incidental to a 29 dwelling located on the same lot. 30
(3) “Complete independent living facilities” means permanent provisions for living, 31 sleeping, eating, cooking, and sanitation on the same parcel as the single-family 32 or multifamily dwelling is or will be situated. 33
(4) “Efficiency kitchen” means a kitchen that includes all of the following: 34

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6 (A) A cooking facility with appliances. 1
(B) A food preparation counter and storage cabinets that are of a 2 reasonable size in relation to the size of the JADU. 3 (5) “Junior accessory dwelling unit” or “JADU” means a residential unit that satisfies 4 all of the following: 5
(A) It is no more than 500 square feet in size. 6
(B) It is contained entirely within an existing or proposed single-7 family structure. An enclosed use within the residence, such as an 8 attached garage, is considered to be a part of and contained within 9 the single-family structure. 10
(C) It includes its own separate sanitation facilities or shares 11 sanitation facilities with the existing or proposed single-family 12 structure. 13
(D) If the unit does not include its own separate bathroom, then it 14 contains an interior entrance to the main living area of the existing 15 or proposed single-family structure in addition to an exterior 16 entrance that is separate from the main entrance to the primary 17 dwelling. 18
(E) It includes an efficiency kitchen, as defined in subsection (c)(4) 19 above. 20
(6) “Livable space” means a space in a dwelling intended for human habitation, 21 including living, sleeping, eating, cooking, or sanitation. 22 (7) “Living area” means the interior habitable area of a dwelling unit, including 23 basements and attics, but does not include a garage or any accessory structure. 24 (8) “Nonconforming zoning condition” means a physical improvement on a property 25 that does not conform with current zoning standards. 26 (9) “Passageway” means a pathway that is unobstructed clear to the sky and extends 27 from a street to one entrance of the ADU or JADU. 28
(10) “Proposed dwelling” means a dwelling that is the subject of a permit application 29 and that meets the requirements for permitting. 30
(11) “Public transit” means a location, including, but not limited to, a bus stop or train 31 station, where the public may access buses, trains, subways, and other forms of 32 transportation that charge set fares, run on fixed routes, and are available to the 33 public. 34

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7 (12) “Tandem parking” means that two or more automobiles are parked on a driveway 1 or in any other location on a lot, lined up behind one another. 2 (d) Approvals. The following approvals apply to ADUs and JADUs under this section: 3 (1) Building-permit Only. If an ADU or JADU complies with each of the general 4 requirements in subsection (e) below, it is allowed with only a building permit in 5 the following scenarios: 6
(A) Converted on Single-family Lot: One ADU as described in this 7 subsection (d)(1)(A) and one JADU on a lot with a proposed or 8 existing single-family dwelling on it, where the ADU or JADU: 9 (i) Is either: within the space of a proposed single-family dwelling; 10 within the existing space of an existing single-family dwelling; or 11 (in the case of an ADU only) within the existing space of an 12 accessory structure, plus up to 150 additional square feet if the 13 expansion is limited to accommodating ingress and egress; and 14 (ii) Has exterior access that is independent of that for the single-family 15 dwelling; and 16
(iii) Has side and rear setbacks sufficient for fire and safety, as dictated 17 by applicable building and fire codes. 18
(iv) The JADU complies with the requirements of Government Code 19 Section 65852.22. 20
(B) Limited Detached on Single-family Lot: One detached, new-21 construction ADU on a lot with a proposed or existing single-22 family dwelling (in addition to any JADU that might otherwise be 23 established on the lot under subsection (d)(1)(A) above), if the 24 detached ADU satisfies each of the following limitations: 25 (i) The side- and rear-yard setbacks are at least four feet. 26 (ii) The total floor area is 1200 square feet or smaller. 27 (iii) The peak height above grade does not exceed the applicable height 28 limit in subsection (e)(2) below. 29
(C) Converted on Multifamily Lot: One or more ADUs within 30 portions of existing multifamily dwelling structures that are not 31 used as livable space, including but not limited to storage rooms, 32 boiler rooms, passageways, attics, basements, or garages, if each 33 converted ADU complies with state building standards for 34 dwellings. Under this subsection (d)(1)(C), at least one converted 35 ADU is allowed within an existing multifamily dwelling, up to a 36 Commented [A1]: New added as extra information by the
state.

Commented [A2]: State allows 800 square feet, Colton uses 1200 square feet and it has worked out well for the City.

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8 quantity equal to 25 percent of the existing multifamily dwelling 1 units. 2
(D) Limited Detached on Multifamily Lot: No more than two 3 detached ADUs on a lot with a proposed multifamily, or up to 4 eight detached ADUs on a lot with an existing multifamily 5 dwelling, if each detached ADU satisfies all of the following: 6 (i) The side- and rear-yard setbacks are at least four feet. If the 7 existing multifamily dwelling has a rear or side yard setback of 8 less than four feet, the City will not require any modification to the 9 multifamily dwelling as a condition of approving the ADU. 10 (ii) The peak height above grade does not exceed the applicable height 11 limit provided in subsection (e)(2) below. 12
(iii) If the lot has an existing multifamily dwelling, the quantity of 13 detached ADUs does not exceed the number of primary dwelling 14 units on the lot. 15
(2) ADU Permit. 16
(A) Except as allowed under subsection (d)(1) above, no ADU may be 17 created without a building permit and an ADU permit in 18 compliance with the standards set forth in subsections (e) and (f) 19 below. 20
(B) The City may charge a fee to reimburse it for costs incurred in 21 processing ADU permits, including the costs of adopting or 22 amending the City’s ADU ordinance. The ADU-permit 23
processing fee is determined by the Development Services 24 Director and approved by the City Council by resolution. 25 (3) Process and Timing. 26
(A) An ADU permit is considered and approved ministerially, without 27 discretionary review or a hearing. 28
(B) The City must approve or deny an application to create an ADU 29 or JADU within 60 days from the date that the City receives a 30 completed application. If the City has not approved or denied the 31 completed application within 60 days, the application is deemed 32 approved unless either: 33
(i) The applicant requests a delay, in which case the 60-day time 34 period is tolled for the period of the requested delay, or 35 (ii) When an application to create an ADU or JADU is submitted with 36 a permit application to create a new single-family or multifamily 37

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9 dwelling on the lot, the City may delay acting on the permit 1 application for the ADU or JADU until the City acts on the permit 2 application to create the new single-family or multifamily 3 dwelling, but the application to create the ADU or JADU will still 4 be considered ministerially without discretionary review or a 5 hearing. 6
(C) If the City denies an application to create an ADU or JADU, the 7 City must provide the applicant with comments that include, 8 among other things, a list of all the defective or deficient items 9 and a description of how the application may be remedied by the 10 applicant. Notice of the denial and corresponding comments must 11 be provided to the applicant within the 60-day time period 12 established by subsection (d)(3)(B) above. 13
(D) A demolition permit for a detached garage that is to be replaced 14 with an ADU is reviewed with the application for the ADU and 15 issued at the same time. 16
(e) General ADU and JADU Requirements. The following requirements apply to all 17 ADUs and JADUs that are approved under subsections (d)(1) or (d)(2) above: 18 (1) Zoning. 19
(A) An ADU or JADU subject only to a building permit under 20 subsection (d)(1) above may be created on a lot in a residential or 21 mixed-use zone. 22
(B) An ADU or JADU subject to an ADU permit under subsection 23 (d)(2) above may be created on a lot that is zoned to allow single-24 family dwelling residential use or multifamily dwelling residential 25 use. 26
(2) Height. 27
(A) Except as otherwise provided by subsections (e)(2)(B) and 28 (e)(2)(C) below, a detached ADU created on a lot with an existing 29 or proposed single family or multifamily dwelling unit may not 30 exceed 35 feet in height. 31
(B) A detached ADU may be up to two stories with a maximum height 32 of 30 feet if it is created on a lot with an existing or proposed single 33 family or multifamily dwelling unit that is located within one-half 34 mile walking distance of a major transit stop or a high quality 35 transit corridor, as those terms are defined in Section 21155 of the 36 Public Resources Code, and the ADU may be up to two additional 37 feet in height (for a maximum of 32 feet) if necessary to 38 accommodate a roof pitch on the ADU that is aligned with the roof 39 pitch of the primary dwelling unit. 40
Commented [A3]: Staff recommends 35 to allow a second
story ADU consistent with current residential standard
requirements.

Commented [A4]: Staff increased height to allow second
story

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10 (C) A detached ADU created on a lot with an existing or proposed 1 multifamily dwelling that has more than one story above grade 2 may not exceed two stories or 30 feet in height. 3
(D) An ADU that is attached to the primary dwelling may not exceed 4 35 feet in height or the height limitation imposed by the 5 underlying zone that applies to the primary dwelling, whichever is 6 lower. Notwithstanding the foregoing, ADUs subject to this 7 subsection (e)(2)(D) may not exceed two stories. 8
(E) For purposes of this subsection (e)(2), height is measured above 9 existing legal grade to the peak of the structure. 10 (3) Fire Sprinklers. 11
(A) Fire sprinklers are required in an ADU if sprinklers are required 12 in the primary residence. 13
(B) The construction of an ADU does not trigger a requirement for 14 fire sprinklers to be installed in the existing primary dwelling. 15 (4) Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 16 days. This prohibition applies regardless of when the ADU or JADU was created. 17 (5) No Separate Conveyance. An ADU or JADU may be rented, but, except as 18 otherwise provided in Government Code Section 65852.26, no ADU or JADU 19 may be sold or otherwise conveyed separately from the lot and the primary 20 dwelling (in the case of a single-family lot) or from the lot and all of the dwellings 21 (in the case of a multifamily lot). 22
(6) Septic System. If the ADU or JADU will connect to an onsite wastewater-23 treatment system, the owner must include with the application a percolation test 24 completed within the last five years or, if the percolation test has been recertified, 25 within the last 10 years. 26
(7) Owner Occupancy. 27
(A) An ADU that is permitted after January 1, 2020, but before 28 January 1, 2025, is not subject to any owner-occupancy 29 requirement. 30
(B) Unless applicable law requires otherwise, all ADUs that are 31 permitted on or after January 1, 2025 are subject to an owner-32 occupancy requirement. A natural person with legal or equitable 33 title to the property must reside on the property as the person’s 34 legal domicile and permanent residence. 35
(C) As required by state law, all JADUs are subject to an owner-36 occupancy requirement. A natural person with legal or equitable 37 Commented [A5]: Staff increased height to allow second
story
Commented [A6]: Staff increased height to allow second story
Commented [A7]: Height section is new to this part of the ADU Code clarifying height maximums. City may allow higher or heights relative to their codes.

Commented [A8]: New clarifying language.

Commented [A9]: Clarifying language regarding dates of
an ADU/JADU construction.

Commented [A10]: New language per state law

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11 title to the property must reside on the property, in either the 1 primary dwelling or JADU, as the person’s legal domicile and 2 permanent residence. However, the owner-occupancy requirement 3 in this subsection (e)(7)(C) does not apply if the property is 4 entirely owned by another governmental agency, land trust, or 5 housing organization. 6
(8) Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a 7 deed restriction must be recorded against the title of the property in the County 8 Recorder’s office and a copy filed with the Director or designee. The deed 9 restriction must run with the land and bind all future owners. The form of the deed 10 restriction will be provided by the City and must provide that: 11 (A) Except as otherwise provided in Government Code Section 12 65852.26, the ADU or JADU may not be sold separately from the 13 primary dwelling. 14
(B) The ADU or JADU is restricted to the approved size and to other 15 attributes allowed by this section. 16
(C) The deed restriction runs with the land and may be enforced 17 against future property owners. 18
(D) The deed restriction may be removed if the owner eliminates the 19 ADU or JADU, as evidenced by, for example, removal of the 20 kitchen facilities. To remove the deed restriction, an owner may 21 make a written request of the Director, providing evidence that 22 the ADU or JADU has in fact been eliminated. The Director may 23 then determine whether the evidence supports the claim that the 24 ADU or JADU has been eliminated. Appeal may be taken from 25 the Director’s determination consistent with other provisions of 26 this Code. If the ADU or JADU is not entirely physically 27 removed, but is only eliminated by virtue of having a necessary 28 component of an ADU or JADU removed, the remaining structure 29 and improvements must otherwise comply with applicable 30 provisions of this Code. 31
(E) The deed restriction is enforceable by the director or his or her 32 designee for the benefit of the City. Failure of the property owner 33 to comply with the deed restriction may result in legal action 34 against the property owner, and the City is authorized to obtain 35 any remedy available to it at law or equity, including, but not 36 limited to, obtaining an injunction enjoining the use of the ADU 37 or JADU in violation of the recorded restrictions or abatement of 38 the illegal unit. 39
(9) Income Reporting. In order to facilitate the City’s obligation to identify adequate 40 sites for housing in accordance with Government Code sections 65583.1 and 41 65852.2, the following requirements must be satisfied: 42

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12 (A) With the building-permit application, the applicant must provide 1 the City with an estimate of the projected annualized rent that will 2 be charged for the ADU or JADU. 3
(B) Within 90 days after each yearly anniversary of the issuance of 4 the building permit, the owner must report the actual rent charged 5 for the ADU or JADU during the prior year. If the City does not 6 receive the report within the 90-day period, the owner is in 7 violation of this Code, and the City may send the owner a notice 8 of violation and allow the owner another 30 days to submit the 9 report. If the owner fails to submit the report within the 30-day 10 period, the City may enforce this provision in accordance with 11 applicable law. 12
(10) Building & Safety. 13
(A) Must comply with building code. Subject to subsection 14 (e)(10)(B) below, all ADUs and JADUs must comply with all 15 local building code requirements. 16
(B) No change of occupancy. Construction of an ADU does not 17 constitute a Group R occupancy change under the local building 18 code, as described in Section 310 of the California Building Code, 19 unless the Building Official makes a written finding based on 20 substantial evidence in the record that the construction of the 21 ADU could have a specific, adverse impact on public health and 22 safety. Nothing in this subsection (e)(10)(B) prevents the City 23 from changing the occupancy code of a space that was 24 uninhabitable space or that was only permitted for nonresidential 25 use and was subsequently converted for residential use in 26 accordance with this section. 27
(f) Specific ADU Requirements. The following requirements apply only to ADUs that 28 require an ADU permit under subsection (d)(2) above. 29 (1) Maximum Size. 30
(A) The maximum size of a detached or attached ADU subject to this 31 subsection (f) is 850 square feet for a studio or one-bedroom unit 32 and 1,200 square feet for a unit with two or more bedrooms. 33 (B) An attached ADU that is created on a lot with an existing primary 34 dwelling is further limited to 75 percent of the floor area of the 35 existing primary dwelling. 36
(C) Application of other development standards in this subsection (f), 37 such as FAR or lot coverage, might further limit the size of the 38 ADU, but no application of the percent-based size limit in 39 subsection (f)(1)(B) above or of an FAR, front setback, lot 40 Commented [A11]: New language per state law.

Commented [A12]: Restriction on bedrooms removed per
state law.

Commented [A13]: Due to smaller homes in the City, this requirement has worked well in practice. State does require minimum ADU size to be 800 square feet.

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13 coverage limit, or open-space requirement may require the ADU 1 to be less than 800 square feet. 2
3 4
(2) Setbacks. 5
(A) An ADU that is subject to this subsection (f) must conform to a 6 25-foot front-yard setback. 7
(B) ADU that is subject to this subsection (f) must conform to 4-foot 8 side- and rear-yard setbacks. 9
(C) No setback is required for an ADU that is subject to this 10 subsection (f) if the ADU is constructed in the same location and 11 to the same dimensions as an existing structure. 12
(3) Lot Coverage. No ADU subject to this subsection (f) may cause the total lot 13 coverage of the lot to exceed 55 percent, subject to subsection (f)(1)(C) above. 14 (4) Minimum Open Space. No ADU subject to this subsection (f) may cause the 15 total percentage of open space of the lot to fall below 30 percent, subject to 16 subsection (f)(1)(C) above. 17
(5) Passageway. No passageway, as defined by subsection (c)(9) above, is required 18 for an ADU. 19
(6) Parking. 20
(A) Generally. One off-street parking space is required for each ADU. 21 The parking space may be provided in setback areas or as tandem 22 parking, as defined by subsection (c)(12) above. Off-street 23 parking shall be permitted in setback areas or through tandem 24 parking, unless specific findings are made that parking in 25 setback areas or tandem par king is not feasible based on specific 26 site or regional topographical or fire and safety conditions. 27 (B) The required parking space for the ADU must be located on the 28 same lot as the ADU. 29
(C) Access to all required parking for the ADU and primary dwelling 30 must be from a public street, an alley, or a recorded access 31 easement. For any lot served by a panhandle or easement access, 32 the access must be a minimum 20 feet in width. 33
(D) Curb cuts providing access from the public right-of-way to on-site 34 parking spaces must be approved by the City Engineer in 35 accordance with established, objective standards. A construction 36 Commented [A14]: BBK: No, you don’t get to measure
setback from toe of slope. The statute is clear that it is from the property line. Period. No way around it.

Commented [A15]: Colton requirement. This has worked
well in practice.

Commented [A16]: Colton requirement. This has worked
well in practice.

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14 permit from the City Engineer shall be obtained for any new or 1 widened curb cuts. 2
(E) Required parking spaces or required maneuvering area must be 3 free of any utility poles, support wires, guard rails, stand pipes or 4 meters. 5
(F) All required parking spaces must be kept clear for parking 6 purposes only. 7
(G) Exceptions. No parking under subsection (f)(6)(A) is required in 8 the following situations: 9
(i) The ADU is located within one-half mile walking distance of 10 public transit, as defined in subsection (c)(11) above. 11 (ii) The ADU is located within an architecturally and historically 12 significant historic district. 13
(iii) The ADU is part of the proposed or existing primary residence or 14 an accessory structure under subsection (d)(1)(A) above. 15 (iv) When on-street parking permits are required but not offered to the 16 occupant of the ADU. 17
(v) When there is an established car share vehicle stop located within 18 one block of the ADU. 19
(vi) When the permit application to create an ADU is submitted with an 20 application to create a new single -family or new multifamily 21 dwelling on the same lot, provided that the ADU or the lot satisfies 22 any other criteria listed in subsections (f)(6)(G)(i) through (v) above. 23 (H) No Replacement. When a garage, carport, or covered parking 24 structure, or uncovered parking space is demolished in 25 conjunction with the construction of an ADU or converted to an 26 ADU, those off-street parking spaces are not required to be 27 replaced. 28
(7) Architectural Requirements. 29
(A) The materials and colors of the exterior walls, roof, and windows 30 and doors must match the appearance and architectural design of 31 those of the primary dwelling. 32
(B) The roof slope must match that of the dominant roof slope of the 33 primary dwelling. The dominant roof slope is the slope shared by 34 the largest portion of the roof. 35
Commented [A17]: Colton requirement. Worked well in
practice.

Commented [A18]: New language per state law.

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15 (C) The exterior lighting must be limited to down-lights or as 1 otherwise required by the building or fire code. 2
(D) The ADU must have an independent exterior entrance, apart from 3 that of the primary dwelling. 4
(E) The interior horizontal dimensions of an ADU must be at least 10 5 feet wide in every direction, with a minimum interior wall height 6 of seven feet. 7
(F) Windows and doors of the ADU may not have a direct line of 8 sight to an adjoining residential property. Fencing, landscaping, or 9 privacy glass may be used to provide screening and prevent a 10 direct line of sight. 11
(G) All windows and doors in an ADU are less than 30 feet from a 12 property line that is not a public right-of-way line must either be 13 (for windows) clerestory with the bottom of the glass at least six 14 feet above the finished floor, or (for windows and for doors) 15 utilize frosted or obscure glass. 16
(8) Landscape Requirements. Evergreen landscape screening must be planted and 17 maintained between the ADU and adjacent parcels as follows: 18 (A) At least one 15-gallon size plant shall be provided for every five 19 linear feet of exterior wall. Alternatively, at least one 24” box size 20 plant shall be provided for every ten linear feet of exterior wall. 21 (B) Plant specimens must be at least six feet tall when installed. As an 22 alternative, a solid fence of at least 6 feet in height may be 23 installed. 24
(C) All landscaping must be drought-tolerant. 25
(D) All landscaping must be from the City’s approved plant list. 26 (9) Historical Protections. An ADU that is on or within 600 feet of real property that 27 is listed in the California Register of Historic Resources must be located so as to 28 not be visible from any public right-of-way. 29
(g) Fees. The following requirements apply to all ADUs that are approved under 30 subsections (d)(1) or (d)(2) above. 31
(1) Impact Fees. 32
(A) No impact fee is required for an ADU that is less than 750 square 33 feet in size. For purposes of this subsection (g)(1), “impact fee” 34 means a “fee” under the Mitigation Fee Act (Gov. Code 35 § 66000(b)) and a fee under the Quimby Act (Gov. Code 36 Commented [A19]: Historical section updated per BBK
recommendation.

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16 § 66477). “Impact fee” here does not include any connection fee 1 or capacity charge for water or sewer service. 2
(B) Any impact fee that is required for an ADU that is 750 square feet 3 or larger in size must be charged proportionately in relation to the 4 square footage of the primary dwelling unit. (E.g., the floor area 5 of the ADU, divided by the floor area of the primary dwelling, 6 times the typical fee amount charged for a new dwelling.) 7 (2) Utility Fees. 8
(A) If an ADU is constructed with a new single-family home, a 9 separate utility connection directly between the ADU and the 10 utility and payment of the normal connection fee and capacity 11 charge for a new dwelling are required. 12
(B) Except as described in subsection (g)(2)(A), converted ADUs on a 13 single-family lot that are created under subsection (d)(1)(A) above 14 are not required to have a new or separate utility connection 15 directly between the ADU and the utility. Nor is a connection fee 16 or capacity charge required. 17
(C) Except as described in subsection (g)(2)(A), all ADUs that are not 18 covered by subsection (g)(2)(B) require a new, separate utility 19 connection directly between the ADU and the utility. 20 (i) The connection is subject to a connection fee or capacity 21 charge that is proportionate to the burden created by the 22 ADU based on either the floor area or the number of 23
drainage-fixture units (DFU) values, as defined by the 24 Uniform Plumbing Code, upon the water or sewer system. 25 (ii) The portion of the fee or charge that is charged by the City 26 may not exceed the reasonable cost of providing this 27 service. 28
(h) Nonconforming Zoning Code Conditions, Building Code Violations, and 29 Unpermitted Structures. 30
(1) Generally. The City will not deny an ADU or JADU application due to a 31 nonconforming zoning condition, building code violation, or unpermitted 32 structure on the lot that does not present a threat to the public health and safety 33 and that is not affected by the construction of the ADU or JADU. 34 (2) Unpermitted ADUs and JADUs constructed before 2020. 35 (A) Permit to Legalize. As required by state law, the City may not 36 deny a permit to legalize an existing but unpermitted ADU or 37 Commented [A20]: D and E incorporated into C
Commented [A21R20]: BBK: Indent to make it obvious,
otherwise the reference to “the connection” is floating.

Commented [A22]: New language per state law.

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17 JADU that was constructed before January 1, 2020, if denial is 1 based on either of the following grounds: 2
(i) The ADU or JADU violates applicable building standards, or 3 (ii) The ADU or JADU does not comply with the state ADU or JADU 4 law (Government Code section 65852.2) or this ADU ordinance 5 (section 18.48.150). 6
(B) Exceptions: 7
(i) Notwithstanding subsection (h)(2)(A) above, the City may deny a 8 permit to legalize an existing but unpermitted ADU or JADU that 9 was constructed before January 1, 2020, if the City makes a 10 finding that correcting a violation is necessary to comply with 11 standards specified in California Health and Safety Code section 12 17920.3. 13
(ii) Subsection (h)(2)(A) above does not apply to a building that is 14 deemed to be substandard in accordance with California Health 15 and Safety Code section 17920.3. 16
(i) Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that 17 does not conform to the objective standards set forth in subsections (a) through (h) of this 18 section may be allowed by the City with a conditional use permit, in accordance with the 19 other provisions of this title. 20
21 SECTION 3. SEVERABILITY. If any section, subsection, subdivision, paragraph, 22 sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be 23 unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision 24 shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part 25 thereof. The City Council hereby declares that it would have passed e ach section, subsection, 26 subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) 27 or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared 28 unconstitutional, or invalid, or ineffective. 29
30 SECTION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT 31
FINDING. The City Council Finds that under California Public Resources Code section 32 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the 33 adoption of an ordinance by a city or county implementing the provisions of section 34 65852.2 of the Government Code, which is California’s ADU law and which also regulates 35 JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily 36 exempt from CEQA in that the proposed ordinance implements the State’s ADU law 37 38 SECTION 5. EFFECTIVE DATE. This ordinance shall go into effect and be in 39 full force and operation from and after thirty (30) days after its final passage and adoption. 40 41 SECTION 6. PUBLICATION. The City Clerk shall certify to the adoption of this 42

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18 ordinance. Not later than fifteen (15) days following the passage of this ordinance, the 1 ordinance, or a summary thereof, along with the names of the City Council members voting 2 for and against the ordin ance, shall be published in a newspaper of general circulation in 3 the City of Colton. 4
5 SECTION 7. FILING. The City Clerk shall submit a copy of this ordinance to 6 the Department of Housing and Community Development within 60 days after adoption. 7 The City Clerk shall also submit a Notice of Exemption within three days after adoption. 8 9 PASSED, APPROVED AND ADOPTED by the City Council of the City of 10 Colton, California, at a regular meeting of the City Council held on the ___ day 11 of _________, 2025 by the following vote: 12
AYES: 13
NOES: 14
ABSENT: 15
ABSTAIN: 16
______________________________17
_ 18
FRANK J. NAVARRO, Mayor 19
ATTEST: 20
________________________________ 21
STEPHANIE VARGAS, Deputy City Clerk 22
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ORDINANCE NO. O-XX-24 1
2 AN ORDINANCE AMENDING TITLE 18, SECTION 18.48.150 OF THE COLTON 3 MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR 4 ACCESSORY DWELLING UNITS AND DETERMINING THE ADOPTION OF THE 5 ORDINANCE TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC 6 RESOURCES CODE § 21080.17 (FILE INDEX NO. DAP24-0049) 7 8 WHEREAS, the City Council of the City of Colton desires to amend certain provisions of 9 the Colton Zoning Code to ensure consistency with state law; and 10 11 WHEREAS, state law authorizes cities to act by ordinance to provide for the 12 creation and regulation of accessory dwelling units (“ADUs”) and junior accessory 13 dwelling units (“JADUs”); and 14
15 WHEREAS, in recent years, the California Legislature has approved, and the 16 Governor has signed into law, numerous bills that, among other things, amend various 17 sections of the Government Code to impose new limits on local authority to regulate ADUs 18 and JADUs; and 19
20 WHEREAS, in 2024, the California Legislature approved, and the Governor 21 signed into law, Assemb ly Bill 2533 (“AB 2533”) and Senate Bill 1211 (“SB 1211”), 22 which further amend state ADU law; and 23
WHEREAS, AB 2533 and SB 1211 take effect on January 1, 2025, and for the 24 City’s ADU ordinance to remain valid, it must be amended to reflect the requirements of 25 AB 2533 and SB 1211; and 26
WHEREAS, the City desires to amend its local regulatory scheme for the 27 construction of ADUs and JADUs to reflect AB 2533’s and SB 1211’s changes to state 28 law; and 29
WHEREAS, on December 10, 2024, the Planning Commission held a duly-noticed 30 public hearing and considered the staff report, recommendations by staff, and public 31 testimony concerning this proposed Ordinance. Following the public hearing, the Planning 32 Commission voted to forward the Ordinance to the City Council with a recommendation 33 in favor of its adoption; and 34
WHEREAS, on January 21, 2025 , the City Council held a duly -noticed public 35 hearing to consider the Ordinance, including: (1) the public testimony and agenda reports 36 prepared in connection with the Ordinance, (2) the policy considerations discussed therein, 37 and (3) the consideration and recommendation by the City’s Planning Commission; and 38 WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred. 39 40 NOW, THEREFORE , the City Council of the City of Colton does ordain as 41 follows: 42
SECTION 1. Incorporation. The recitals above are each incorporated by reference 43 and adopted as findings by the City Council. 44

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2 SECTION 2. CEQA. Under California Public Resources Code section 21080.17, 1 the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an 2 ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of 3 Division 1 of Title 7 of the California Government Code, which is Calif ornia’s ADU law 4 and which also regulates JADUs, as defined by section 66313. Therefore, adoption of the 5 Ordinance is statutorily exempt from CEQA in that it implements state ADU law. 6 SECTION 3. General Plan. The City Council hereby finds that the adoption of the 7 Ordinance is consistent with the General Plan as a matter of law under Government Code 8 section 66314(c). 9
SECTION 4. Code Amendment. Section 18.48.150 – ACCESSORY DWELLING 10 UNITS of the Colton Municipal Code is hereby amended and restated to read in its entirety 11 as provided in Exhibit “A-1,” attached hereto and incorporated herein by reference. 12 SECTION 5. Effective Date. This Ordinance takes effect 30 days after its adoption. 13 SECTION 6 . HCD Submittal . In accordance with Government Code section 14 66326, the City Clerk is directed to submit a copy of this Ordinance to the California 15 Department of Housing and Community Development within 60 days after adoption. 16 SECTION 7. Publication. The City Clerk is directed to certify to the adoption of 17 this Ordinance and post or publish this Ordinance as required by law. 18 SECTION 8. Custodian of Records. The custodian of records for this Ordinance is 19 the City Clerk and the records comprising the administrative record are located at 650 N. 20 La Cadena Drive, Colton, CA 92324. 21
SECTION 9. Severability. If any provision of this Ordinance or its application to 22 any person or circumstance is held to be invalid by a court of competent jurisdiction, such 23 invalidity has no effect on the other provisions or applications of the Ordinance that can be 24 given effect without the invalid provision or application, and to this extent, the provisions 25 of this Ordinance are severable. The City Council declares that it would have adopted this 26 Ordinance irrespective of the invalidity of any portion thereof. 27 28 29
30 31
32 33
34 35

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3 Exhibit “A-1” 1
2 SECTION 18.48.150 – ACCESSORY DWELLING UNITS 3
Section 18.48.150 - Accessory Dwelling Units 4
(a) Purpose. The purpose of this section is to allow and regulate accessory dwelling units 5 (ADUs) and junior accessory dwelling units (JADUs) in compliance with California 6 Government Code sections 65852.2 and 65852.22. 7
(b) Effect of Conforming. An ADU or JADU that conforms to the standards in this section 8 will not be: 9
(1) Deemed to be inconsistent with the City’s general plan and zoning designation for 10 the lot on which the ADU or JADU is located. 11
(2) Deemed to exceed the allowable density for the lot on which the ADU or JADU is 12 located. 13
(3) Considered in the application of any local ordinance, policy, or program to limit 14 residential growth. 15
(4) Required to correct a nonconforming zoning condition, as defined in subsection 16 (c)(8) below. This does not prevent the City from enforcing compliance with 17 applicable building standards in accordance with Health and Safety Code section 18 17980.12. 19
(c) Definitions. As used in this section, terms are defined as follows: 20 (1) “Accessory dwelling unit” or “ADU” means an attached or a detached residential 21 dwelling unit that provides complete independent living facilities for one or more 22 persons and is located on a lot with a proposed or existing primary residence. An 23 accessory dwelling unit also includes the following: 24 (A) An efficiency unit, as defined by section 17958.1 of the California 25 Health and Safety Code; and 26
(B) A manufactured home, as defined by section 18007 of the 27 California Health and Safety Code. 28
(2) “Accessory structure” means a structure that is accessory and incidental to a 29 dwelling located on the same lot. 30
(3) “Complete independent living facilities” means permanent provisions for living, 31 sleeping, eating, cooking, and sanitation on the same parcel as the single-family 32 or multifamily dwelling is or will be situated. 33
(4) “Efficiency kitchen” means a kitchen that includes all of the following: 34

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4 (A) A cooking facility with appliances. 1
(B) A food preparation counter and storage cabinets that are of a 2 reasonable size in relation to the size of the JADU. 3 (5) “Junior accessory dwelling unit” or “JADU” means a residential unit that satisfies 4 all of the following: 5
(A) It is no more than 500 square feet in size. 6
(B) It is contained entirely within an existing or proposed single-7 family structure. An enclosed use within the residence, such as an 8 attached garage, is considered to be a part of and contained within 9 the single-family structure. 10
(C) It includes its own separate sanitation facilities or shares 11 sanitation facilities with the existing or proposed single-family 12 structure. 13
(D) If the unit does not include its own separate bathroom, then it 14 contains an interior entrance to the main living area of the existing 15 or proposed single-family structure in addition to an exterior 16 entrance that is separate from the main entrance to the primary 17 dwelling. 18
(E) It includes an efficiency kitchen, as defined in subsection (c)(4) 19 above. 20
(6) “Livable space” means a space in a dwelling intended for human habitation, 21 including living, sleeping, eating, cooking, or sanitation. 22 (7) “Living area” means the interior habitable area of a dwelling unit, including 23 basements and attics, but does not include a garage or any accessory structure. 24 (8) “Nonconforming zoning condition” means a physical improvement on a property 25 that does not conform with current zoning standards. 26 (9) “Passageway” means a pathway that is unobstructed clear to the sky and extends 27 from a street to one entrance of the ADU or JADU. 28
(10) “Proposed dwelling” means a dwelling that is the subject of a permit application 29 and that meets the requirements for permitting. 30
(11) “Public transit” means a location, including, but not limited to, a bus stop or train 31 station, where the public may access buses, trains, subways, and other forms of 32 transportation that charge set fares, run on fixed routes, and are available to the 33 public. 34

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5 (12) “Tandem parking” means that two or more automobiles are parked on a driveway 1 or in any other location on a lot, lined up behind one another. 2 (d) Approvals. The following approvals apply to ADUs and JADUs under this section: 3 (1) Building-permit Only. If an ADU or JADU complies with each of the general 4 requirements in subsection (e) below, it is allowed with only a building permit in 5 the following scenarios: 6
(A) Converted on Single-family Lot: One ADU as described in this 7 subsection (d)(1)(A) and one JADU on a lot with a proposed or 8 existing single-family dwelling on it, where the ADU or JADU: 9 (i) Is either: within the space of a proposed single-family dwelling; 10 within the existing space of an existing single-family dwelling; or 11 (in the case of an ADU only) within the existing space of an 12 accessory structure, plus up to 150 additional square feet if the 13 expansion is limited to accommodating ingress and egress; and 14 (ii) Has exterior access that is independent of that for the single-family 15 dwelling; and 16
(iii) Has side and rear setbacks sufficient for fire and safety, as dictated 17 by applicable building and fire codes. 18
(iv) The JADU complies with the requirements of Government Code 19 Section 65852.22. 20
(B) Limited Detached on Single-family Lot: One detached, new-21 construction ADU on a lot with a proposed or existing single-22 family dwelling (in addition to any JADU that might otherwise be 23 established on the lot under subsection (d)(1)(A) above), if the 24 detached ADU satisfies each of the following limitations: 25 (i) The side- and rear-yard setbacks are at least four feet. 26 (ii) The total floor area is 1200 square feet or smaller. 27 (iii) The peak height above grade does not exceed the applicable height 28 limit in subsection (e)(2) below. 29
(C) Converted on Multifamily Lot: One or more ADUs within 30 portions of existing multifamily dwelling structures that are not 31 used as livable space, including but not limited to storage rooms, 32 boiler rooms, passageways, attics, basements, or garages, if each 33 converted ADU complies with state building standards for 34 dwellings. Under this subsection (d)(1)(C), at least one converted 35 ADU is allowed within an existing multifamily dwelling, up to a 36 Commented [A1]: New added as extra information by the
state.

Commented [A2]: State allows 800 square feet, Colton uses 1200 square feet and it has worked out well for the City.

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6 quantity equal to 25 percent of the existing multifamily dwelling 1 units. 2
(D) Limited Detached on Multifamily Lot: No more than two 3 detached ADUs on a lot with a proposed multifamily, or up to 4 eight detached ADUs on a lot with an existing multifamily 5 dwelling, if each detached ADU satisfies all of the following:that 6 has an existing or proposed multifamily dwelling if each detached 7 ADU satisfies both of the following limitations: 8
(i) The side- and rear-yard setbacks are at least four feet. If the 9 existing multifamily dwelling has a rear or side yard setback of 10 less than four feet, the City will not require any modification to the 11 multifamily dwelling as a condition of approving the ADU. 12 (ii) The peak height above grade does not exceed the applicable height 13 limit provided in subsection (e)(2) below. 14
(iii) If the lot has an existing multifamily dwelling, the quantity of 15 detached ADUs does not exceed the number of primary dwelling 16 units on the lot. 17
(2) ADU Permit. 18
(A) Except as allowed under subsection (d)(1) above, no ADU may be 19 created without a building permit and an ADU permit in 20 compliance with the standards set forth in subsections (e) and (f) 21 below. 22
(B) The City may charge a fee to reimburse it for costs incurred in 23 processing ADU permits, including the costs of adopting or 24 amending the City’s ADU ordinance. The ADU-permit 25
processing fee is determined by the Development Services 26 Director and approved by the City Council by resolution. 27 (3) Process and Timing. 28
(A) An ADU permit is considered and approved ministerially, without 29 discretionary review or a hearing. 30
(B) The City must approve or deny an application to create an ADU 31 or JADU within 60 days from the date that the City receives a 32 completed application. If the City has not approved or denied the 33 completed application within 60 days, the application is deemed 34 approved unless either: 35
(i) The applicant requests a delay, in which case the 60-day time 36 period is tolled for the period of the requested delay, or 37

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7 (ii) When an application to create an ADU or JADU is submitted with 1 a permit application to create a new single-family or multifamily 2 dwelling on the lot, the City may delay acting on the permit 3 application for the ADU or JADU until the City acts on the permit 4 application to create the new single-family or multifamily 5 dwelling, but the application to create the ADU or JADU will still 6 be considered ministerially without discretionary review or a 7 hearing. 8
(C) If the City denies an application to create an ADU or JADU, the 9 City must provide the applicant with comments that include, 10 among other things, a list of all the defective or deficient items 11 and a description of how the application may be remedied by the 12 applicant. Notice of the denial and corresponding comments must 13 be provided to the applicant within the 60-day time period 14 established by subsection (d)(3)(B) above. 15
(D) A demolition permit for a detached garage that is to be replaced 16 with an ADU is reviewed with the application for the ADU and 17 issued at the same time. 18
(e) General ADU and JADU Requirements. The following requirements apply to all 19 ADUs and JADUs that are approved under subsections (d)(1) or (d)(2) above: 20 (1) Zoning. 21
(A) An ADU or JADU subject only to a building permit under 22 subsection (d)(1) above may be created on a lot in a residential or 23 mixed-use zone. 24
(B) An ADU or JADU subject to an ADU permit under subsection 25 (d)(2) above may be created on a lot that is zoned to allow single-26 family dwelling residential use or multifamily dwelling residential 27 use. 28
(2) Height. 29
(A) Except as otherwise provided by subsections (e)(2)(B) and 30 (e)(2)(C) below, a detached ADU created on a lot with an existing 31 or proposed single family or multifamily dwelling unit may not 32 exceed 35 feet in height. 33
(B) A detached ADU may be up to two stories with a maximum height 34 of 30 feet if it is created on a lot with an existing or proposed single 35 family or multifamily dwelling unit that is located within one -half 36 mile walking distance of a major transit stop or a high quality 37 transit corridor, as those terms are defined in Section 21155 of the 38 Public Resources Code, and the ADU may be up to two additional 39 feet in height (for a maximum of 32 feet) if necessary to 40 Commented [A3]: Staff recommends 35 to allow a second
story ADU consistent with current residential standard
requirements.

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8 accommodate a roof pitch on the ADU that is aligned with the roof 1 pitch of the primary dwelling unit. 2
(C) A detached ADU created on a lot with an existing or proposed 3 multifamily dwelling that has more than one story above grade 4 may not exceed two stories or 30 feet in height. 5
(D) An ADU that is attached to the primary dwelling may not exceed 6 35 feet in height or the height limitation imposed by the 7 underlying zone that applies to the primary dwelling, whichever is 8 lower. Notwithstanding the foregoing, ADUs subject to this 9 subsection (e)(2)(D) may not exceed two stories. 10
(E) For purposes of this subsection (e)(2), height is measured above 11 existing legal grade to the peak of the structure. 12 (3) Fire Sprinklers. 13
(A) Fire sprinklers are required in an ADU if sprinklers are required 14 in the primary residence. 15
(B) The construction of an ADU does not trigger a requirement for 16 fire sprinklers to be installed in the existing primary dwelling. 17 (4) Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 18 days. This prohibition applies regardless of when the ADU or JADU was created. 19 (5) No Separate Conveyance. An ADU or JADU may be rented, but, except as 20 otherwise provided in Government Code Section 65852.26, no ADU or JADU 21 may be sold or otherwise conveyed separately from the lot and the primary 22 dwelling (in the case of a single-family lot) or from the lot and all of the dwellings 23 (in the case of a multifamily lot). 24
(6) Septic System. If the ADU or JADU will connect to an onsite wastewater-25 treatment system, the owner must include with the application a percolation test 26 completed within the last five years or, if the percolation test has been recertified, 27 within the last 10 years. 28
(7) Owner Occupancy. 29
(A) An ADU that is permitted after January 1, 2020, but before 30 January 1, 2025, is not subject to any owner-occupancy 31 requirement. 32
(B) Unless applicable law requires otherwise, all ADUs that are 33 permitted on or after January 1, 2025 are subject to an owner-34 occupancy requirement. A natural person with legal or equitable 35 title to the property must reside on the property as the person’s 36 legal domicile and permanent residence. 37
Commented [A4]: Staff increased height to allow second
story
Commented [A5]: Staff increased height to allow second
story
Commented [A6]: Staff increased height to allow second story
Commented [A7]: Height section is new to this part of the ADU Code clarifying height maximums. City may allow higher or heights relative to their codes.

Commented [A8]: New clarifying language.

Commented [A9]: Clarifying language regarding dates of
an ADU/JADU construction.

Commented [A10]: New language per state law

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9 (C) As required by state law, all JADUs are subject to an owner-1 occupancy requirement. A natural person with legal or equitable 2 title to the property must reside on the property, in either the 3 primary dwelling or JADU, as the person’s legal domicile and 4 permanent residence. However, the owner-occupancy requirement 5 in this subsection (e)(7)(C) does not apply if the property is 6 entirely owned by another governmental agency, land trust, or 7 housing organization. 8
(8) Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a 9 deed restriction must be recorded against the title of the property in the County 10 Recorder’s office and a copy filed with the Director or designee. The deed 11 restriction must run with the land and bind all future owners. The form of the deed 12 restriction will be provided by the City and must provide that: 13 (A) Except as otherwise provided in Government Code Section 14 65852.26, the ADU or JADU may not be sold separately from the 15 primary dwelling. 16
(B) The ADU or JADU is restricted to the approved size and to other 17 attributes allowed by this section. 18
(C) The deed restriction runs with the land and may be enforced 19 against future property owners. 20
(D) The deed restriction may be removed if the owner eliminates the 21 ADU or JADU, as evidenced by, for example, removal of the 22 kitchen facilities. To remove the deed restriction, an owner may 23 make a written request of the Director, providing evidence that 24 the ADU or JADU has in fact been eliminated. The Director may 25 then determine whether the evidence supports the claim that the 26 ADU or JADU has been eliminated. Appeal may be taken from 27 the Director’s determination consistent with other provisions of 28 this Code. If the ADU or JADU is not entirely physically 29 removed, but is only eliminated by virtue of having a necessary 30 component of an ADU or JADU removed, the remaining structure 31 and improvements must otherwise comply with applicable 32 provisions of this Code. 33
(E) The deed restriction is enforceable by the director or his or her 34 designee for the benefit of the City. Failure of the property owner 35 to comply with the deed restriction may result in legal action 36 against the property owner, and the City is authorized to obtain 37 any remedy available to it at law or equity, including, but not 38 limited to, obtaining an injunction enjoining the use of the ADU 39 or JADU in violation of the recorded restrictions or abatement of 40 the illegal unit. 41

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10 (9) Income Reporting. In order to facilitate the City’s obligation to identify adequate 1 sites for housing in accordance with Government Code sections 65583.1 and 2 65852.2, the following requirements must be satisfied: 3 (A) With the building-permit application, the applicant must provide 4 the City with an estimate of the projected annualized rent that will 5 be charged for the ADU or JADU. 6
(B) Within 90 days after each yearly anniversary of the issuance of 7 the building permit, the owner must report the actual rent charged 8 for the ADU or JADU during the prior year. If the City does not 9 receive the report within the 90-day period, the owner is in 10 violation of this Code, and the City may send the owner a notice 11 of violation and allow the owner another 30 days to submit the 12 report. If the owner fails to submit the report within the 30-day 13 period, the City may enforce this provision in accordance with 14 applicable law. 15
(10) Building & Safety. 16
(A) Must comply with building code. Subject to subsection 17 (e)(10)(B) below, all ADUs and JADUs must comply with all 18 local building code requirements. 19
(B) No change of occupancy. Construction of an ADU does not 20 constitute a Group R occupancy change under the local building 21 code, as described in Section 310 of the California Building Code, 22 unless the Building Official makes a written finding based on 23 substantial evidence in the record that the construction of the 24 ADU could have a specific, adverse impact on public health and 25 safety. Nothing in this subsection (e)(10)(B) prevents the City 26 from changing the occupancy code of a space that was 27 uninhabitable space or that was only permitted for nonresidential 28 use and was subsequently converted for residential use in 29 accordance with this section. 30
(f) Specific ADU Requirements. The following requirements apply only to ADUs that 31 require an ADU permit under subsection (d)(2) above. 32 (1) Maximum Size. 33
(A) The maximum size of a detached or attached ADU subject to this 34 subsection (f) is 850 square feet for a studio or one-bedroom unit 35 and 1,200 square feet for a unit with two or more bedrooms. 36 (B) An attached ADU that is created on a lot with an existing primary 37 dwelling is further limited to 75 percent of the floor area of the 38 existing primary dwelling. 39
Commented [A11]: New language per state law.

Commented [A12]: Restriction on bedrooms removed per
state law.

Commented [A13]: Due to smaller homes in the City, this requirement has worked well in practice. State does require minimum ADU size to be 800 square feet.

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11 (C) Application of other development standards in this subsection (f), 1 such as FAR or lot coverage, might further limit the size of the 2 ADU, but no application of the percent-based size limit in 3 subsection (f)(1)(B) above or of an FAR, front setback, lot 4 coverage limit, or open-space requirement may require the ADU 5 to be less than 800 square feet. 6
7 8
(2) Setbacks. 9
(A) An ADU that is subject to this subsection (f) must conform to a 10 25-foot front-yard setback. 11
(B) ADU that is subject to this subsection (f) must conform to 4-foot 12 side- and rear-yard setbacks. 13
(C) No setback is required for an ADU that is subject to this 14 subsection (f) if the ADU is constructed in the same location and 15 to the same dimensions as an existing structure. 16
(3) Lot Coverage. No ADU subject to this subsection (f) may cause the total lot 17 coverage of the lot to exceed 55 percent, subject to subsection (f)(1)(C) above. 18 (4) Minimum Open Space. No ADU subject to this subsection (f) may cause the 19 total percentage of open space of the lot to fall below 30 percent, subject to 20 subsection (f)(1)(C) above. 21
(5) Passageway. No passageway, as defined by subsection (c)(9) above, is required 22 for an ADU. 23
(6) Parking. 24
(A) Generally. One off-street parking space is required for each ADU. 25 The parking space may be provided in setback areas or as tandem 26 parking, as defined by subsection (c)(12) above. Off-street 27 parking shall be permitted in setback areas or through tandem 28 parking, unless specific findings are made that parking in 29 setback areas or tandem par king is not feasible based on specific 30 site or regional topographical or fire and safety conditions. 31 (B) The required parking space for the ADU must be located on the 32 same lot as the ADU. 33
(C) Access to all required parking for the ADU and primary dwelling 34 must be from a public street, an alley, or a recorded access 35 easement. For any lot served by a panhandle or easement access, 36 the access must be a minimum 20 feet in width. 37
Commented [A14]: BBK: No, you don’t get to measure
setback from toe of slope. The statute is clear that it is from the property line. Period. No way around it.

Commented [A15]: Colton requirement. This has worked
well in practice.

Commented [A16]: Colton requirement. This has worked
well in practice.

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12 (D) Curb cuts providing access from the public right-of-way to on-site 1 parking spaces must be approved by the City Engineer in 2 accordance with established, objective standards. A construction 3 permit from the City Engineer shall be obtained for any new or 4 widened curb cuts. 5
(E) Required parking spaces or required maneuvering area must be 6 free of any utility poles, support wires, guard rails, stand pipes or 7 meters. 8
(F) All required parking spaces must be kept clear for parking 9 purposes only. 10
(G) Exceptions. No parking under subsection (f)(6)(A) is required in 11 the following situations: 12
(i) The ADU is located within one-half mile walking distance of 13 public transit, as defined in subsection (c)(11) above. 14 (ii) The ADU is located within an architecturally and historically 15 significant historic district. 16
(iii) The ADU is part of the proposed or existing primary residence or 17 an accessory structure under subsection (d)(1)(A) above. 18 (iv) When on-street parking permits are required but not offered to the 19 occupant of the ADU. 20
(v) When there is an established car share vehicle stop located within 21 one block of the ADU. 22
(vi) When the permit application to create an ADU is submitted with an 23 application to create a new single -family or new multifamily 24 dwelling on the same lot, provided that the ADU or the lot satisfies 25 any other criteria listed in subsections (f)(6)(G)(i) through (v) above. 26 (H) No Replacement. When a garage, carport, or covered parking 27 structure, or uncovered parking space is demolished in 28 conjunction with the construction of an ADU or converted to an 29 ADU, those off-street parking spaces are not required to be 30 replaced. 31
(7) Architectural Requirements. 32
(A) The materials and colors of the exterior walls, roof, and windows 33 and doors must match the appearance and architectural design of 34 those of the primary dwelling. 35
Commented [A17]: Colton requirement. Worked well in
practice.

Commented [A18]: New language per state law.

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13 (B) The roof slope must match that of the dominant roof slope of the 1 primary dwelling. The dominant roof slope is the slope shared by 2 the largest portion of the roof. 3
(C) The exterior lighting must be limited to down-lights or as 4 otherwise required by the building or fire code. 5
(D) The ADU must have an independent exterior entrance, apart from 6 that of the primary dwelling. 7
(E) The interior horizontal dimensions of an ADU must be at least 10 8 feet wide in every direction, with a minimum interior wall height 9 of seven feet. 10
(F) Windows and doors of the ADU may not have a direct line of 11 sight to an adjoining residential property. Fencing, landscaping, or 12 privacy glass may be used to provide screening and prevent a 13 direct line of sight. 14
(G) All windows and doors in an ADU are less than 30 feet from a 15 property line that is not a public right-of-way line must either be 16 (for windows) clerestory with the bottom of the glass at least six 17 feet above the finished floor, or (for windows and for doors) 18 utilize frosted or obscure glass. 19
(8) Landscape Requirements. Evergreen landscape screening must be planted and 20 maintained between the ADU and adjacent parcels as follows: 21 (A) At least one 15-gallon size plant shall be provided for every five 22 linear feet of exterior wall. Alternatively, at least one 24” box size 23 plant shall be provided for every ten linear feet of exterior wall. 24 (B) Plant specimens must be at least six feet tall when installed. As an 25 alternative, a solid fence of at least 6 feet in height may be 26 installed. 27
(C) All landscaping must be drought-tolerant. 28
(D) All landscaping must be from the City’s approved plant list. 29 (9) Historical Protections. An ADU that is on or within 600 feet of real property that 30 is listed in the California Register of Historic Resources must be located so as to 31 not be visible from any public right-of-way. 32
(g) Fees. The following requirements apply to all ADUs that are approved under 33 subsections (d)(1) or (d)(2) above. 34
(1) Impact Fees. 35
Commented [A19]: Historical section updated per BBK
recommendation.

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14 (A) No impact fee is required for an ADU that is less than 750 square 1 feet in size. For purposes of this subsection (g)(1), “impact fee” 2 means a “fee” under the Mitigation Fee Act (Gov. Code 3 § 66000(b)) and a fee under the Quimby Act (Gov. Code 4 § 66477). “Impact fee” here does not include any connection fee 5 or capacity charge for water or sewer service. 6
(B) Any impact fee that is required for an ADU that is 750 square feet 7 or larger in size must be charged proportionately in relation to the 8 square footage of the primary dwelling unit. (E.g., the floor area 9 of the ADU, divided by the floor area of the primary dwelling, 10 times the typical fee amount charged for a new dwelling.) 11 (2) Utility Fees. 12
(A) If an ADU is constructed with a new single-family home, a 13 separate utility connection directly between the ADU and the 14 utility and payment of the normal connection fee and capacity 15 charge for a new dwelling are required. 16
(B) Except as described in subsection (g)(2)(A), converted ADUs on a 17 single-family lot that are created under subsection (d)(1)(A) above 18 are not required to have a new or separate utility connection 19 directly between the ADU and the utility. Nor is a connection fee 20 or capacity charge required. 21
(C) Except as described in subsection (g)(2)(A), all ADUs that are not 22 covered by subsection (g)(2)(B) require a new, separate utility 23 connection directly between the ADU and the utility. 24 (i) The connection is subject to a connection fee or capacity 25 charge that is proportionate to the burden created by the 26 ADU based on either the floor area or the number of 27
drainage-fixture units (DFU) values, as defined by the 28 Uniform Plumbing Code, upon the water or sewer system. 29 (ii) The portion of the fee or charge that is charged by the City 30 may not exceed the reasonable cost of providing this 31 service. 32
(h) Nonconforming Zoning Code Conditions, Building Code Violations, and 33 Unpermitted Structures. 34
(1) Generally. The City will not deny an ADU or JADU application due to a 35 nonconforming zoning condition, building code violation, or unpermitted 36 structure on the lot that does not present a threat to the public health and safety 37 and that is not affected by the construction of the ADU or JADU. 38 (2) Unpermitted ADUs and JADUs constructed before 201820. 39 Commented [A20]: D and E incorporated into C
Commented [A21R20]: BBK: Indent to make it obvious,
otherwise the reference to “the connection” is floating.

Commented [A22]: New language per state law.

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15 (A) Permit to Legalize. As required by state law, the City may not 1 deny a permit to legalize an existing but unpermitted ADU or 2 JADU that was constructed before January 1, 201820, if denial is 3 based on either of the following grounds: 4
(i) The ADU or JADU violates applicable building standards, or 5 (ii) The ADU or JADU does not comply with the state ADU or JADU 6 law (Government Code section 65852.2) or this ADU ordinance 7 (section 18.48.150). 8
(B) Exceptions: 9
(i) Notwithstanding subsection (h)(2)(A) above, the City may deny a 10 permit to legalize an existing but unpermitted ADU or JADU that 11 was constructed before January 1, 201820, if the City makes a 12 finding that correcting a violation is necessary to comply with 13 standards specified in California Health and Safety Code section 14 17920.3.protect the health and safety of the public or of occupants 15 of the structure. 16
(ii) Subsection (h)(2)(A) above does not apply to a building that is 17 deemed to be substandard in accordance with California Health 18 and Safety Code section 17920.3. 19
(i) Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that 20 does not conform to the objective standards set forth in subsections (a) through (h) of this 21 section may be allowed by the City with a conditional use permit, in accordance with the 22 other provisions of this title. 23
24 SECTION 3. SEVERABILITY. If any section, subsection, subdivision, paragraph, 25 sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be 26 unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision 27 shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part 28 thereof. The City Council hereby declares that it would have passed each section, subsection, 29 subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) 30 or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared 31 unconstitutional, or invalid, or ineffective. 32
33 SECTION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT 34
FINDING. The City Council Finds that un der California Public Resources Code section 35 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the 36 adoption of an ordinance by a city or county implementing the provisions of section 37 65852.2 of the Government Code, which is California’s ADU law and which also regulates 38 JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily 39 exempt from CEQA in that the proposed ordinance implements the State’s ADU law 40 41 SECTION 5. EFFECTIVE DATE. This ordinance shall go into effect and be in 42

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16 full force and operation from and after thirty (30) days after its final passage and adoption. 1 2 SECTION 6. PUBLICATION. The City Clerk shall certify to the adoption of this 3 ordinance. Not later than fifteen (15) days following the passage of this ordinance, the 4 ordinance, or a summary thereof, along with the names of the City Council members voting 5 for and against the ordin ance, shall be published in a newspaper of general circulation in 6 the City of Colton. 7
8 SECTION 7. FILING. The City Clerk shall submit a copy of this ordinance to 9 the Department of Housing and Community Development within 60 days after adoption. 10 The City Clerk shall also submit a Notice of Exemption within three days after adoption. 11 12 PASSED, APPROVED AND ADOPTED by the City Council of the City of 13 Colton, California, at a regular meeting of the City Council held on the ___ day 14 of _________, 2025 by the following vote: 15
AYES: 16
NOES: 17
ABSENT: 18
ABSTAIN: 19
______________________________20
_ 21
FRANK J. NAVARRO, Mayor 22
ATTEST: 23
________________________________ 24
STEPHANIE VARGAS, Deputy City Clerk 25
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1 ORDINANCE NO. O-XX-25 2
3 AN ORDINANCE AMENDING TITLE 18, SECTION 18.48.150 OF THE COLTON 4 MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR 5 ACCESSORY DWELLING UNITS AND DETERMINING THE ADOPTION OF THE 6 ORDINANCE TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC 7 RESOURCES CODE § 21080.17 (FILE INDEX NO. DAP24-0049) 8 9 WHEREAS, the City Council of the City of Colton desires to amend certain provisions of 10 the Colton Zoning Code to ensure consistency with state law; and 11 12 WHEREAS, state law authorizes cities to act by ordinance to provide for the 13 creation and regulation of accessory dwelling units (“ADUs”) and junior accessory 14 dwelling units (“JADUs”); and 15
16 WHEREAS, in recent years, the California Legislature has approved, and the 17 Governor has signed into law, numerous bills that, among other things, amend various 18 sections of the Government Code to impose new limits on local authority to regulate ADUs 19 and JADUs; and 20
21 WHEREAS, in 2024, the California Legislature approved, and the Governor 22 signed into law, Assemb ly Bill 2533 (“AB 2533”) and Senate Bill 1211 (“SB 1211”), 23 which further amend state ADU law; and 24
WHEREAS, AB 2533 and SB 1211 take effect on January 1, 2025, and for the 25 City’s ADU ordinance to remain valid, it must be amended to reflect the requirements of 26 AB 2533 and SB 1211; and 27
WHEREAS, the City desires to amend its local regulatory scheme for the 28 construction of ADUs and JADUs to reflect AB 2533’s and SB 1211’s changes to state 29 law; and 30
WHEREAS, on December 10, 2024, the Planning Commission held a duly-noticed 31 public hearing and considered the staff report, recommendations by staff, and public 32 testimony concerning this proposed Ordinance. Following the public hearing, the Planning 33 Commission voted to forward the Ordi nance to the City Council with a recommendation 34 in favor of its adoption; and 35
WHEREAS, on January 21, 2025 , the City Council held a duly -noticed public 36 hearing to consider the Ordinance, including: (1) the public testimony and agenda reports 37 prepared in connection with the Ordinance, (2) the policy considerations discussed therein, 38 and (3) the consideration and recommendation by the City’s Planning Commission; and 39 WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred. 40 41 NOW, THERE FORE, the City Council of the City of Colton does ordain as 42 follows: 43
SECTION 1. Incorporation. The recitals above are each incorporated by reference 44

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2 and adopted as findings by the City Council. 1
SECTION 2. CEQA. Under California Public Resources Code sect ion 21080.17, 2 the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an 3 ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of 4 Division 1 of Title 7 of the California Government Code, which is C alifornia’s ADU law 5 and which also regulates JADUs, as defined by section 66313. Therefore, adoption of the 6 Ordinance is statutorily exempt from CEQA in that it implements state ADU law. 7 SECTION 3. General Plan. The City Council hereby finds that the adoption of the 8 Ordinance is consistent with the General Plan as a matter of law under Government Code 9 section 66314(c). 10
SECTION 4. Code Amendment. Section 18.48.150 – ACCESSORY DWELLING 11 UNITS of the Colton Municipal Code is hereby amended and restated to read in its entirety 12 as provided in Exhibit “A-1,” attached hereto and incorporated herein by reference. 13 SECTION 5. Effective Date. This Ordinance takes effect 30 days after its adoption. 14 SECTION 6 . HCD Submittal . In accordance with Government Code section 15 66326, the City Clerk is directed to submit a copy of this Ordinance to the California 16 Department of Housing and Community Development within 60 days after adoption. 17 SECTION 7. Publication. The City Clerk is directed to certify to the adoption of 18 this Ordinance and post or publish this Ordinance as required by law. 19 SECTION 8. Custodian of Records. The custodian of records for this Ordinance is 20 the City Clerk and the records comprising the administrative record are located at 650 N. 21 La Cadena Drive, Colton, CA 92324. 22
SECTION 9. Severability. If any provision of this Ordinance or its application to 23 any person or circumstance is held to be invalid by a court of competent jurisdiction, such 24 invalidity has no effect on the other provisions or applications of the Ordinance that can be 25 given effect without the invalid provision or application, and to this extent, the provisions 26 of this Ordinance are severable. The City Council declares that it would have adopted this 27 Ordinance irrespective of the invalidity of any portion thereof. 28 29 30
31 32
33 34
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3 Exhibit “A-1” 1
2 SECTION 18.48.150 – ACCESSORY DWELLING UNITS 3
Section 18.48.150 - Accessory Dwelling Units 4
(a) Purpose. The purpose of this section is to allow and regulate accessory dwelling units 5 (ADUs) and junior accessory dwelling units (JADUs) in compliance with California 6 Government Code sections 65852.2 and 65852.22. 7
(b) Effect of Conforming. An ADU or JADU that conforms to the standards in this section 8 will not be: 9
(1) Deemed to be inconsistent with the City’s general plan and zoning designation for 10 the lot on which the ADU or JADU is located. 11
(2) Deemed to exceed the allowable density for the lot on which the ADU or JADU is 12 located. 13
(3) Considered in the application of any local ordinance, policy, or program to limit 14 residential growth. 15
(4) Required to correct a nonconforming zoning condition, as defined in subsection 16 (c)(8) below. This does not prevent the City from enforcing compliance with 17 applicable building standards in accordance with Health and Safety Code section 18 17980.12. 19
(c) Definitions. As used in this section, terms are defined as follows: 20 (1) “Accessory dwelling unit” or “ADU” means an attached or a detached residential 21 dwelling unit that provides complete independent living facilities for one or more 22 persons and is located on a lot with a proposed or existing primary residence. An 23 accessory dwelling unit also includes the following: 24 (A) An efficiency unit, as defined by section 17958.1 of the California 25 Health and Safety Code; and 26
(B) A manufactured home, as defined by section 18007 of the 27 California Health and Safety Code. 28
(2) “Accessory structure” means a structure that is accessory and incidental to a 29 dwelling located on the same lot. 30
(3) “Complete independent living facilities” means permanent provisions for living, 31 sleeping, eating, cooking, and sanitation on the same parcel as the single-family 32 or multifamily dwelling is or will be situated. 33
(4) “Efficiency kitchen” means a kitchen that includes all of the following: 34

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4 (A) A cooking facility with appliances. 1
(B) A food preparation counter and storage cabinets that are of a 2 reasonable size in relation to the size of the JADU. 3 (5) “Junior accessory dwelling unit” or “JADU” means a residential unit that satisfies 4 all of the following: 5
(A) It is no more than 500 square feet in size. 6
(B) It is contained entirely within an existing or proposed single-7 family structure. An enclosed use within the residence, such as an 8 attached garage, is considered to be a part of and contained within 9 the single-family structure. 10
(C) It includes its own separate sanitation facilities or shares 11 sanitation facilities with the existing or proposed single-family 12 structure. 13
(D) If the unit does not include its own separate bathroom, then it 14 contains an interior entrance to the main living area of the existing 15 or proposed single-family structure in addition to an exterior 16 entrance that is separate from the main entrance to the primary 17 dwelling. 18
(E) It includes an efficiency kitchen, as defined in subsection (c)(4) 19 above. 20
(6) “Livable space” means a space in a dwelling intended for human habitation, 21 including living, sleeping, eating, cooking, or sanitation. 22 (7) “Living area” means the interior habitable area of a dwelling unit, including 23 basements and attics, but does not include a garage or any accessory structure. 24 (8) “Nonconforming zoning condition” means a physical improvement on a property 25 that does not conform with current zoning standards. 26 (9) “Passageway” means a pathway that is unobstructed clear to the sky and extends 27 from a street to one entrance of the ADU or JADU. 28
(10) “Proposed dwelling” means a dwelling that is the subject of a permit application 29 and that meets the requirements for permitting. 30
(11) “Public transit” means a location, including, but not limited to, a bus stop or train 31 station, where the public may access buses, trains, subways, and other forms of 32 transportation that charge set fares, run on fixed routes, and are available to the 33 public. 34

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5 (12) “Tandem parking” means that two or more automobiles are parked on a driveway 1 or in any other location on a lot, lined up behind one another. 2 (d) Approvals. The following approvals apply to ADUs and JADUs under this section: 3 (1) Building-permit Only. If an ADU or JADU complies with each of the general 4 requirements in subsection (e) below, it is allowed with only a building permit in 5 the following scenarios: 6
(A) Converted on Single-family Lot: One ADU as described in this 7 subsection (d)(1)(A) and one JADU on a lot with a proposed or 8 existing single-family dwelling on it, where the ADU or JADU: 9 (i) Is either: within the space of a proposed single-family dwelling; 10 within the existing space of an existing single-family dwelling; or 11 (in the case of an ADU only) within the existing space of an 12 accessory structure, plus up to 150 additional square feet if the 13 expansion is limited to accommodating ingress and egress; and 14 (ii) Has exterior access that is independent of that for the single-family 15 dwelling; and 16
(iii) Has side and rear setbacks sufficient for fire and safety, as dictated 17 by applicable building and fire codes. 18
(iv) The JADU complies with the requirements of Government Code 19 Section 65852.22. 20
(B) Limited Detached on Single-family Lot: One detached, new-21 construction ADU on a lot with a proposed or existing single-22 family dwelling (in addition to any JADU that might otherwise be 23 established on the lot under subsection (d)(1)(A) above), if the 24 detached ADU satisfies each of the following limitations: 25 (i) The side- and rear-yard setbacks are at least four feet. 26 (ii) The total floor area is 1200 square feet or smaller. 27 (iii) The peak height above grade does not exceed the applicable height 28 limit in subsection (e)(2) below. 29
(C) Converted on Multifamily Lot: One or more ADUs within 30 portions of existing multifamily dwelling structures that are not 31 used as livable space, including but not limited to storage rooms, 32 boiler rooms, passageways, attics, basements, or garages, if each 33 converted ADU complies with state building standards for 34 dwellings. Under this subsection (d)(1)(C), at least one converted 35 ADU is allowed within an existing multifamily dwelling, up to a 36 Commented [A1]: New added as extra information by the
state.

Commented [A2]: State allows 800 square feet, Colton uses 1200 square feet and it has worked out well for the City.

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6 quantity equal to 25 percent of the existing multifamily dwelling 1 units. 2
(D) Limited Detached on Multifamily Lot: No more than two 3 detached ADUs on a lot with a proposed multifamily, or up to 4 eight detached ADUs on a lot with an existing multifamily 5 dwelling, if each detached ADU satisfies all of the following: 6 (i) The side- and rear-yard setbacks are at least four feet. If the 7 existing multifamily dwelling has a rear or side yard setback of 8 less than four feet, the City will not require any modification to the 9 multifamily dwelling as a condition of approving the ADU. 10 (ii) The peak height above grade does not exceed the applicable height 11 limit provided in subsection (e)(2) below. 12
(iii) If the lot has an existing multifamily dwelling, the quantity of 13 detached ADUs does not exceed the number of primary dwelling 14 units on the lot. 15
(2) ADU Permit. 16
(A) Except as allowed under subsection (d)(1) above, no ADU may be 17 created without a building permit and an ADU permit in 18 compliance with the standards set forth in subsections (e) and (f) 19 below. 20
(B) The City may charge a fee to reimburse it for costs incurred in 21 processing ADU permits, including the costs of adopting or 22 amending the City’s ADU ordinance. The ADU-permit 23
processing fee is determined by the Development Services 24 Director and approved by the City Council by resolution. 25 (3) Process and Timing. 26
(A) An ADU permit is considered and approved ministerially, without 27 discretionary review or a hearing. 28
(B) The City must approve or deny an application to create an ADU 29 or JADU within 60 days from the date that the City receives a 30 completed application. If the City has not approved or denied the 31 completed application within 60 days, the application is deemed 32 approved unless either: 33
(i) The applicant requests a delay, in which case the 60-day time 34 period is tolled for the period of the requested delay, or 35 (ii) When an application to create an ADU or JADU is submitted with 36 a permit application to create a new single-family or multifamily 37

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7 dwelling on the lot, the City may delay acting on the permit 1 application for the ADU or JADU until the City acts on the permit 2 application to create the new single-family or multifamily 3 dwelling, but the application to create the ADU or JADU will still 4 be considered ministerially without discretionary review or a 5 hearing. 6
(C) If the City denies an application to create an ADU or JADU, the 7 City must provide the applicant with comments that include, 8 among other things, a list of all the defective or deficient items 9 and a description of how the application may be remedied by the 10 applicant. Notice of the denial and corresponding comments must 11 be provided to the applicant within the 60-day time period 12 established by subsection (d)(3)(B) above. 13
(D) A demolition permit for a detached garage that is to be replaced 14 with an ADU is reviewed with the application for the ADU and 15 issued at the same time. 16
(e) General ADU and JADU Requirements. The following requirements apply to all 17 ADUs and JADUs that are approved under subsections (d)(1) or (d)(2) above: 18 (1) Zoning. 19
(A) An ADU or JADU subject only to a building permit under 20 subsection (d)(1) above may be created on a lot in a residential or 21 mixed-use zone. 22
(B) An ADU or JADU subject to an ADU permit under subsection 23 (d)(2) above may be created on a lot that is zoned to allow single-24 family dwelling residential use or multifamily dwelling residential 25 use. 26
(2) Height. 27
(A) Except as otherwise provided by subsections (e)(2)(B) and 28 (e)(2)(C) below, a detached ADU created on a lot with an existing 29 or proposed single family or multifamily dwelling unit may not 30 exceed 35 feet in height. 31
(B) A detached ADU may be up to two stories with a maximum height 32 of 30 feet if it is created on a lot with an existing or proposed single 33 family or multifamily dwelling unit that is located within one -half 34 mile walking distance of a major transit stop or a high quality 35 transit corridor, as those terms are defined in Section 21155 of the 36 Public Resources Code, and the ADU may be up to two additional 37 feet in height (for a m aximum of 32 feet) if necessary to 38 accommodate a roof pitch on the ADU that is aligned with the roof 39 pitch of the primary dwelling unit. 40
Commented [A3]: Staff recommends 35 to allow a second
story ADU consistent with current residential standard
requirements.

Commented [A4]: Staff increased height to allow second
story

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8 (C) A detached ADU created on a lot with an existing or proposed 1 multifamily dwelling that has more than one story above grade 2 may not exceed two stories or 30 feet in height. 3
(D) An ADU that is attached to the primary dwelling may not exceed 4 35 feet in height or the height limitation imposed by the 5 underlying zone that applies to the primary dwelling, whichever is 6 lower. Notwithstanding the foregoing, ADUs subject to this 7 subsection (e)(2)(D) may not exceed two stories. 8
(E) For purposes of this subsection (e)(2), height is measured above 9 existing legal grade to the peak of the structure. 10 (3) Fire Sprinklers. 11
(A) Fire sprinklers are required in an ADU if sprinklers are required 12 in the primary residence. 13
(B) The construction of an ADU does not trigger a requirement for 14 fire sprinklers to be installed in the existing primary dwelling. 15 (4) Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 16 days. This prohibition applies regardless of when the ADU or JADU was created. 17 (5) No Separate Conveyance. An ADU or JADU may be rented, but, except as 18 otherwise provided in Government Code Section 65852.26, no ADU or JADU 19 may be sold or otherwise conveyed separately from the lot and the primary 20 dwelling (in the case of a single-family lot) or from the lot and all of the dwellings 21 (in the case of a multifamily lot). 22
(6) Septic System. If the ADU or JADU will connect to an onsite wastewater-23 treatment system, the owner must include with the application a percolation test 24 completed within the last five years or, if the percolation test has been recertified, 25 within the last 10 years. 26
(7) Owner Occupancy. 27
(A) An ADU that is permitted after January 1, 2020, but before 28 January 1, 2025, is not subject to any owner-occupancy 29 requirement. 30
(B) Unless applicable law requires otherwise, all ADUs that are 31 permitted on or after January 1, 2025 are subject to an owner-32 occupancy requirement. A natural person with legal or equitable 33 title to the property must reside on the property as the person’s 34 legal domicile and permanent residence. 35
(C) As required by state law, all JADUs are subject to an owner-36 occupancy requirement. A natural person with legal or equitable 37 Commented [A5]: Staff increased height to allow second
story
Commented [A6]: Staff increased height to allow second story
Commented [A7]: Height section is new to this part of the ADU Code clarifying height maximums. City may allow higher or heights relative to their codes.

Commented [A8]: New clarifying language.

Commented [A9]: Clarifying language regarding dates of
an ADU/JADU construction.

Commented [A10]: New language per state law

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9 title to the property must reside on the property, in either the 1 primary dwelling or JADU, as the person’s legal domicile and 2 permanent residence. However, the owner-occupancy requirement 3 in this subsection (e)(7)(C) does not apply if the property is 4 entirely owned by another governmental agency, land trust, or 5 housing organization. 6
(8) Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a 7 deed restriction must be recorded against the title of the property in the County 8 Recorder’s office and a copy filed with the Director or designee. The deed 9 restriction must run with the land and bind all future owners. The form of the deed 10 restriction will be provided by the City and must provide that: 11 (A) Except as otherwise provided in Government Code Section 12 65852.26, the ADU or JADU may not be sold separately from the 13 primary dwelling. 14
(B) The ADU or JADU is restricted to the approved size and to other 15 attributes allowed by this section. 16
(C) The deed restriction runs with the land and may be enforced 17 against future property owners. 18
(D) The deed restriction may be removed if the owner eliminates the 19 ADU or JADU, as evidenced by, for example, removal of the 20 kitchen facilities. To remove the deed restriction, an owner may 21 make a written request of the Director, providing evidence that 22 the ADU or JADU has in fact been eliminated. The Director may 23 then determine whether the evidence supports the claim that the 24 ADU or JADU has been eliminated. Appeal may be taken from 25 the Director’s determination consistent with other provisions of 26 this Code. If the ADU or JADU is not entirely physically 27 removed, but is only eliminated by virtue of having a necessary 28 component of an ADU or JADU removed, the remaining structure 29 and improvements must otherwise comply with applicable 30 provisions of this Code. 31
(E) The deed restriction is enforceable by the director or his or her 32 designee for the benefit of the City. Failure of the property owner 33 to comply with the deed restriction may result in legal action 34 against the property owner, and the City is authorized to obtain 35 any remedy available to it at law or equity, including, but not 36 limited to, obtaining an injunction enjoining the use of the ADU 37 or JADU in violation of the recorded restrictions or abatement of 38 the illegal unit. 39
(9) Income Reporting. In order to facilitate the City’s obligation to identify adequate 40 sites for housing in accordance with Government Code sections 65583.1 and 41 65852.2, the following requirements must be satisfied: 42

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10 (A) With the building-permit application, the applicant must provide 1 the City with an estimate of the projected annualized rent that will 2 be charged for the ADU or JADU. 3
(B) Within 90 days after each yearly anniversary of the issuance of 4 the building permit, the owner must report the actual rent charged 5 for the ADU or JADU during the prior year. If the City does not 6 receive the report within the 90-day period, the owner is in 7 violation of this Code, and the City may send the owner a notice 8 of violation and allow the owner another 30 days to submit the 9 report. If the owner fails to submit the report within the 30-day 10 period, the City may enforce this provision in accordance with 11 applicable law. 12
(10) Building & Safety. 13
(A) Must comply with building code. Subject to subsection 14 (e)(10)(B) below, all ADUs and JADUs must comply with all 15 local building code requirements. 16
(B) No change of occupancy. Construction of an ADU does not 17 constitute a Group R occupancy change under the local building 18 code, as described in Section 310 of the California Building Code, 19 unless the Building Official makes a written finding based on 20 substantial evidence in the record that the construction of the 21 ADU could have a specific, adverse impact on public health and 22 safety. Nothing in this subsection (e)(10)(B) prevents the City 23 from changing the occupancy code of a space that was 24 uninhabitable space or that was only permitted for nonresidential 25 use and was subsequently converted for residential use in 26 accordance with this section. 27
(f) Specific ADU Requirements. The following requirements apply only to ADUs that 28 require an ADU permit under subsection (d)(2) above. 29 (1) Maximum Size. 30
(A) The maximum size of a detached or attached ADU subject to this 31 subsection (f) is 850 square feet for a studio or one-bedroom unit 32 and 1,200 square feet for a unit with two or more bedrooms. 33 (B) An attached ADU that is created on a lot with an existing primary 34 dwelling is further limited to 75 percent of the floor area of the 35 existing primary dwelling. 36
(C) Application of other development standards in this subsection (f), 37 such as FAR or lot coverage, might further limit the size of the 38 ADU, but no application of the percent-based size limit in 39 subsection (f)(1)(B) above or of an FAR, front setback, lot 40 Commented [A11]: New language per state law.

Commented [A12]: Restriction on bedrooms removed per
state law.

Commented [A13]: Due to smaller homes in the City, this requirement has worked well in practice. State does require minimum ADU size to be 800 square feet.

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11 coverage limit, or open-space requirement may require the ADU 1 to be less than 800 square feet. 2
3 4
(2) Setbacks. 5
(A) An ADU that is subject to this subsection (f) must conform to a 6 25-foot front-yard setback. 7
(B) ADU that is subject to this subsection (f) must conform to 4-foot 8 side- and rear-yard setbacks. 9
(C) No setback is required for an ADU that is subject to this 10 subsection (f) if the ADU is constructed in the same location and 11 to the same dimensions as an existing structure. 12
(3) Lot Coverage. No ADU subject to this subsection (f) may cause the total lot 13 coverage of the lot to exceed 55 percent, subject to subsection (f)(1)(C) above. 14 (4) Minimum Open Space. No ADU subject to this subsection (f) may cause the 15 total percentage of open space of the lot to fall below 30 percent, subject to 16 subsection (f)(1)(C) above. 17
(5) Passageway. No passageway, as defined by subsection (c)(9) above, is required 18 for an ADU. 19
(6) Parking. 20
(A) Generally. One off-street parking space is required for each ADU. 21 The parking space may be provided in setback areas or as tandem 22 parking, as defined by subsection (c)(12) above. Off-street 23 parking shall be permitted in setback areas or through tandem 24 parking, unless specific findings are made that parking in 25 setback areas or tandem parking is not feasible based on specific 26 site or regional topograp hical or fire and safety conditions. 27 (B) The required parking space for the ADU must be located on the 28 same lot as the ADU. 29
(C) Access to all required parking for the ADU and primary dwelling 30 must be from a public street, an alley, or a recorded access 31 easement. For any lot served by a panhandle or easement access, 32 the access must be a minimum 20 feet in width. 33
(D) Curb cuts providing access from the public right-of-way to on-site 34 parking spaces must be approved by the City Engineer in 35 accordance with established, objective standards. A construction 36 Commented [A14]: BBK: No, you don’t get to measure
setback from toe of slope. The statute is clear that it is from the property line. Period. No way around it.

Commented [A15]: Colton requirement. This has worked
well in practice.

Commented [A16]: Colton requirement. This has worked
well in practice.

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12 permit from the City Engineer shall be obtained for any new or 1 widened curb cuts. 2
(E) Required parking spaces or required maneuvering area must be 3 free of any utility poles, support wires, guard rails, stand pipes or 4 meters. 5
(F) All required parking spaces must be kept clear for parking 6 purposes only. 7
(G) Exceptions. No parking under subsection (f)(6)(A) is required in 8 the following situations: 9
(i) The ADU is located within one-half mile walking distance of 10 public transit, as defined in subsection (c)(11) above. 11 (ii) The ADU is located within an architecturally and historically 12 significant historic district. 13
(iii) The ADU is part of the proposed or existing primary residence or 14 an accessory structure under subsection (d)(1)(A) above. 15 (iv) When on-street parking permits are required but not offered to the 16 occupant of the ADU. 17
(v) When there is an established car share vehicle stop located within 18 one block of the ADU. 19
(vi) When the permit application to create an ADU is submitted with an 20 application to create a new single -family or new multifamily 21 dwelling on the same lot, provided that the ADU or the lot satisfies 22 any other criteria listed in subsections (f)(6)(G)(i) through (v) above. 23 (H) No Replacement. When a garage, carport, or covered parking 24 structure, or uncovered parking space is demolished in 25 conjunction with the construction of an ADU or converted to an 26 ADU, those off-street parking spaces are not required to be 27 replaced. 28
(7) Architectural Requirements. 29
(A) The materials and colors of the exterior walls, roof, and windows 30 and doors must match the appearance and architectural design of 31 those of the primary dwelling. 32
(B) The roof slope must match that of the dominant roof slope of the 33 primary dwelling. The dominant roof slope is the slope shared by 34 the largest portion of the roof. 35
Commented [A17]: Colton requirement. Worked well in
practice.

Commented [A18]: New language per state law.

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13 (C) The exterior lighting must be limited to down-lights or as 1 otherwise required by the building or fire code. 2
(D) The ADU must have an independent exterior entrance, apart from 3 that of the primary dwelling. 4
(E) The interior horizontal dimensions of an ADU must be at least 10 5 feet wide in every direction, with a minimum interior wall height 6 of seven feet. 7
(F) Windows and doors of the ADU may not have a direct line of 8 sight to an adjoining residential property. Fencing, landscaping, or 9 privacy glass may be used to provide screening and prevent a 10 direct line of sight. 11
(G) All windows and doors in an ADU are less than 30 feet from a 12 property line that is not a public right-of-way line must either be 13 (for windows) clerestory with the bottom of the glass at least six 14 feet above the finished floor, or (for windows and for doors) 15 utilize frosted or obscure glass. 16
(8) Landscape Requirements. Evergreen landscape screening must be planted and 17 maintained between the ADU and adjacent parcels as follows: 18 (A) At least one 15-gallon size plant shall be provided for every five 19 linear feet of exterior wall. Alternatively, at least one 24” box size 20 plant shall be provided for every ten linear feet of exterior wall. 21 (B) Plant specimens must be at least six feet tall when installed. As an 22 alternative, a solid fence of at least 6 feet in height may be 23 installed. 24
(C) All landscaping must be drought-tolerant. 25
(D) All landscaping must be from the City’s approved plant list. 26 (9) Historical Protections. An ADU that is on or within 600 feet of real property that 27 is listed in the California Register of Historic Resources must be located so as to 28 not be visible from any public right-of-way. 29
(g) Fees. The following requirements apply to all ADUs that are approved under 30 subsections (d)(1) or (d)(2) above. 31
(1) Impact Fees. 32
(A) No impact fee is required for an ADU that is less than 750 square 33 feet in size. For purposes of this subsection (g)(1), “impact fee” 34 means a “fee” under the Mitigation Fee Act (Gov. Code 35 § 66000(b)) and a fee under the Quimby Act (Gov. Code 36 Commented [A19]: Historical section updated per BBK
recommendation.

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14 § 66477). “Impact fee” here does not include any connection fee 1 or capacity charge for water or sewer service. 2
(B) Any impact fee that is required for an ADU that is 750 square feet 3 or larger in size must be charged proportionately in relation to the 4 square footage of the primary dwelling unit. (E.g., the floor area 5 of the ADU, divided by the floor area of the primary dwelling, 6 times the typical fee amount charged for a new dwelling.) 7 (2) Utility Fees. 8
(A) If an ADU is constructed with a new single-family home, a 9 separate utility connection directly between the ADU and the 10 utility and payment of the normal connection fee and capacity 11 charge for a new dwelling are required. 12
(B) Except as described in subsection (g)(2)(A), converted ADUs on a 13 single-family lot that are created under subsection (d)(1)(A) above 14 are not required to have a new or separate utility connection 15 directly between the ADU and the utility. Nor is a connection fee 16 or capacity charge required. 17
(C) Except as described in subsection (g)(2)(A), all ADUs that are not 18 covered by subsection (g)(2)(B) require a new, separate utility 19 connection directly between the ADU and the utility. 20 (i) The connection is subject to a connection fee or capacity 21 charge that is proportionate to the burden created by the 22 ADU based on either the floor area or the number of 23
drainage-fixture units (DFU) values, as defined by the 24 Uniform Plumbing Code, upon the water or sewer system. 25 (ii) The portion of the fee or charge that is charged by the City 26 may not exceed the reasonable cost of providing this 27 service. 28
(h) Nonconforming Zoning Code Conditions, Building Code Violations, and 29 Unpermitted Structures. 30
(1) Generally. The City will not deny an ADU or JADU application due to a 31 nonconforming zoning condition, building code violation, or unpermitted 32 structure on the lot that does not present a threat to the public health and safety 33 and that is not affected by the construction of the ADU or JADU. 34 (2) Unpermitted ADUs and JADUs constructed before 2020. 35 (A) Permit to Legalize. As required by state law, the City may not 36 deny a permit to legalize an existing but unpermitted ADU or 37 Commented [A20]: D and E incorporated into C
Commented [A21R20]: BBK: Indent to make it obvious,
otherwise the reference to “the connection” is floating.

Commented [A22]: New language per state law.

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15 JADU that was constructed before January 1, 2020, if denial is 1 based on either of the following grounds: 2
(i) The ADU or JADU violates applicable building standards, or 3 (ii) The ADU or JADU does not comply with the state ADU or JADU 4 law (Government Code section 65852.2) or this ADU ordinance 5 (section 18.48.150). 6
(B) Exceptions: 7
(i) Notwithstanding subsection (h)(2)(A) above, the City may deny a 8 permit to legalize an existing but unpermitted ADU or JADU that 9 was constructed before January 1, 2020, if the City makes a 10 finding that correcting a violation is necessary to comply with 11 standards specified in California Health and Safety Code section 12 17920.3. 13
(ii) Subsection (h)(2)(A) above does not apply to a building that is 14 deemed to be substandard in accordance with California Health 15 and Safety Code section 17920.3. 16
(i) Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that 17 does not conform to the objective standards set forth in subsections (a) through (h) of this 18 section may be allowed by the City with a conditional use permit, in accordance with the 19 other provisions of this title. 20
21 SECTION 3. SEVERABILITY. If any section, subsection, subdivision, paragraph, 22 sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be 23 unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision 24 shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part 25 thereof. The City Council hereby declares that it would have passed each section, subsection, 26 subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) 27 or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared 28 unconstitutional, or invalid, or ineffective. 29
30 SECTION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT 31
FINDING. The City Council Finds that un der California Public Resources Code section 32 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the 33 adoption of an ordinance by a city or county implementing the provisions of section 34 65852.2 of the Government Code, which is California’s ADU law and which also regulates 35 JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily 36 exempt from CEQA in that the proposed ordinance implements the State’s ADU law 37 38 SECTION 5. EFFECTIVE DATE. This ordinance shall go into effect and be in 39 full force and operation from and after thirty (30) days after its final passage and adoption. 40 41 SECTION 6. PUBLICATION. The City Clerk shall certify to the adoption of this 42

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16 ordinance. Not later than fifteen (15) days following the passage of this ordinance, the 1 ordinance, or a summary thereof, along with the names of the City Council members voting 2 for and against the ordinance, shall be published in a newspaper of general circulation in 3 the City of Colton. 4
5 SECTION 7. FILING. The City Clerk shall submit a copy of this ordinance to 6 the Department of Housing and Community Development within 60 days after adoption. 7 The City Clerk shall also submit a Notice of Exemption within three days after adoption. 8 9 PASSED, APPROVED AND ADOPTED by the City Council of the City of 10 Colton, California, at a regular meeting of the City Council held on the ___ day 11 of _________, 2025 by the following vote: 12
AYES: 13
NOES: 14
ABSENT: 15
ABSTAIN: 16
______________________________17
_ 18
FRANK J. NAVARRO, Mayor 19
ATTEST: 20
________________________________ 21
STEPHANIE VARGAS, Deputy City Clerk 22
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ITEM NO. 2

STAFF REPORT

DATE: JANUARY 21, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STACEY DABBS, FINANCE DIRECTOR
SUBJECT: RECEIVE AND FILE THE FY2023-24 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND RELATED REPORTS.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Receive and file the FY2023-24 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

The City’s financial statements have been audited by CliftonLarsonAllen LLP (“CLA”), a public accounting firm fully licensed and qualified to perform audits of the State and local gov ernments within the State of California . This audit is required to be performed in accordance with Generally Accepted Accounting Standards and Government Auditing Standards. 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, 2024, are free of material misstatements.

At the conclusion of the audit test work, the audit firm issues an opinion as to the fairness of presentation of the financ ial position of City activities. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management; and, evaluating the overall financial statement presentation. Based upon the audit results, the independent auditors concluded that there was a reasonable basis for rendering an unmodified opinion that the City of Colton, California’s financial statement s for the fiscal year ended June 30, 2024, 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. In addition, the audit firm is also required to issu e reports related to internal controls, as well as 2 Packet Pg. 64
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FY2023-24 ACFR
January 21, 2025

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 e nsure accuracy in financial reporting. The audit findings, as well as recommended and proposed corrective actions are discussed in detail in the attached Report on Internal Controls and in the Report on Scope of Audit and Other Matters. For the year ending June 30, 2024, no auditor comments on internal controls were noted.

A summary of the key financial highlights is included in t he Management Discussion and Analysis section of the ACFR, including:

 The assets and deferred outflows of resources of the C ity exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $222,690,188 ( net position). The two components of this total are: $53,049,398 in governmental activities and $169,640,790 in business-type activities.
 Overall, the City’s total net position increased by $30,349,065, or 20.8%.  As of the close of the current fiscal year, general fund unassigned fund balance was $12,791,400, and balances committed for the City’s pension and OPEB liabilities total $28,107,984 and $12,515,145 respectively.
 Long-term liabilities related to Governmental Activities decreased by $2,650,355 or

6.8%, and long -term liabilities related to Business -type activities decreased $3,784,209, or 9.0%, over the prior year.
 As of the close of the fiscal year, the City’s governmental activities reported a combined ending net position of $53,049,398, an increase of $15,689,498, or 42.0%, over the prior year.
 As of June 30, 2024, total long -term liabilities of the governmental activities and business-type activities include net pension liabilities of $108,129,940 and $22,649,141 respectively, which represents increases of $6,143,246, or 6.0%, and $275,883, or 1.2%, respectively. As of June 30, 2024, total long-term liabilities of the governmental activities and business-type activities include net OPEB liabilities of $34,103,655 and $9,758,576 respectively, which represents increases of $2,294,036, or 7.2%, and $322,694, or 3.4%, respectively.

The December 16, 2024 transmission letter outlines several factors affecting the City’s financial condition, including local economic factors, legislative impacts, long -term financial planning, and relevant fiscal policies.

FISCAL IMPACTS
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FY2023-24 ACFR
January 21, 2025

There is no fiscal impact associated with receiving and filing the Annual Comprehensive Financial Report and related compliance letters . The Annual Comprehensive Financial Report represents the City’s audited position for the year ending June 30, 2024.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. Final City of Colton 2024 ACFR

2. Final 2024 YB Internal Control Communication

3. Final 2024 Governance Communication

4. Final Signed Financial Statement - GANN

5. 2024 Colton Presentation
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CITY OF COLTON, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024
Prepared by: Finance Department

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CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

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

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 30
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT – ARPA
SPECIAL REVENUE FUND 31

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 32

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CITY OF COLTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

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

FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 37
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 38
NOTES TO FINANCIAL STATEMENTS 39

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, 2024

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, 2024

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, 2024

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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650 North La Cadena Drive, Colton, California 92324

___________________________________________________________________________________________

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December 16, 2024

Honorable Mayor, Members of the City Council, and Citizens of Colton:

It is a pleasure to submit the Annual Comprehensive Financ ial Report (ACFR) of the City of Colton for the fiscal year ending June 30, 2024. Responsibility for the accu racy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. Management takes responsibility for the completeness and reliability of the information contained in this report based upon a comprehensive framework of internal control that it has established for this purpose. The objective of internal controls is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. In our opinion, the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City, and contains all disclosures necessary to enable the reader to understand 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 Bo ard (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, manage ment of the City has established a comprehensive internal control framework that is designed both to prot ect 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 internal controls framework has been designed to provide reasonable rather than an ab solute assurance that the financial statements will be free from material misstateme nt. 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 assu rance that the financial statements of the City of Colton, California, for the fiscal year ended June 30, 2024, 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 ma de by management; and, evaluating the overall financial statement presentation. Based upon the audit results, the independent auditors concluded that there was a reasonable basis for renderi ng an unmodified opinion that the City of Colton, California’s financial statements for the fiscal year ende d June 30, 2024, and are fair ly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

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The independent audit of the City’s financial statements was part of a broader, federally mandated “Single Audit” designed to meet the particular needs of federal gr antor agencies. The standa rds governing Single Audit engagements require the indepe ndent auditor to report the fair representa tion of the financial statements and the audited government’s internal controls and compliance with legal requirements, with particular emphasis on internal controls and legal requireme nts 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 intr oduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR.

Profile of the City of Colton, California

Colton History
The City of Colton was formally founded in 1875 and inco rporated on July 11, 1887. However, its history goes back to the 1770s when several explor ers searched routes from S onora, Mexico to Monterey, California, bringing the first Europeans to Colton. Prior to this time, th e Gua-Chama, Seranno, and Sa n 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 construc ted through the valley on its way eastward from Los Angeles in 1875. Colton was name d for Civil War General David Colton, who was also Vice President of the Southern Railroad Company.

Nicholas P. Earp, the father of Wyatt, Virgil, and Morg an (among other children), was elected as Colton’s first City Clerk/Recorder in 1887. Afte r Morgan was killed at the famous gunfight in Tombstone, Arizona, Virgil brought his body to Colton, where he was buried in Hermos a 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 operat es under a Council-Manager form of government. The Mayor is separately elected at-large and serves a four-year term. Six elected Council Members are elected by district and serve four-year terms. Advising the City Council are a number of appointed citizen committees and commissions.

Other elected officials include the City Clerk and the City Treasurer.

FACTORS AFFECTING FINANCIAL CONDITION

Local Economy
Although the primary focus of this Annual Comprehensive Financial Report (ACFR) is the financial condition of the City for the fiscal year ending June 30, 2024, mana gement carefully evaluated the ongoing local and national economic impacts of the COVID-19 pandemic and global geopolitical events, such as the ongoing conflict in Russia and Ukraine, when preparing the Fiscal Year 2023-24 budget. The U.S. ec onomy demonstrated stronger- than-expected performance during the fiscal year; however, persistent inflation, supply chain disruptions, elevated energy costs, and other economic challenges have continue d to impact City operations, local businesses, and the community at large. These factors have influenced policy decisions and financial strategies to ensure the City remains fiscally resilient while continuing to provide essential services.

In 2024, the U.S. economy demonstrated robust growth, with the Gross Domestic Product (GDP) increasing by

2.8% in the third quarter, following a 3.0% rise in the second quarter. This expansion was primarily driven by

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strong consumer spending, which grew at an annual rate of 3.7%, and a 7.5% increase in exports. Federal government spending also contributed to this growth. Th e national unemployment rate rose slightly to 4.2% in November 2024, up from 4.1% in the previous month. Th is increase is partly due to higher immigration, which has expanded the labor force.

In San Bernardino County, part of Ca lifornia's Inland Empire, the unemploym ent rate stood at 5.3% in October 2024. This reflects a slight increase from 5.1% in Octobe r 2023, indicating a stable labor market in the region.

Overall, the U.S. economy in 2024 has shown res ilience, with steady GDP growth and manageable unemployment rates, both nationally and within San Bernardino County.

The City’s elected and appointed officials consider many economic factors when recommending and adopting the budget, including national, state, and local economic c onditions, legislative acts impacting local businesses and government, trends in housing and business, and the unique needs of the community. The City has significantly improved its financial positi on through prudent, long-range policy decisi ons and sound fiscal management. The City is committed to strong fiscal and strategic manage ment and economic growth a nd 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 su staining operations, the deferred maintenance and costs of post-employment benefits for pensions and retiree medical continue to re quire ongoing disciplined management and planning to sustain Colton into the future.

The City relies on two primary General Fund revenue s ources that are highly sensitive to economic conditions:
property tax and sales tax. Property tax serves as a corner stone of the City's General Fund revenues, providing a stable and predictable source of funding. This revenue stre am is directly tied to the assessed value of real estate within the City's jurisdiction, includin g residential, commercial, and industri al properties. Property tax collections during the fiscal year ending June 30, 2024, surpassed exp ectations, reflecting the resilience of the local housing market despite broader economic uncertainti es. Sales tax, combined in the fina ncial reports with the local district tax locally known as Measure S, is the largest contributor to the General Fund and is i nherently more volatile due to its sensitivity to economic conditions and consumer behavior. For the y ear ending June 30, 2024, the sales tax revenue category included one full year of Measure S funding.

The City’s economic outlook is subject to significant risks, many of which are beyond its control. At the state and federal levels, ongoing challenges in implementing effec tive policy initiatives add to the uncertainty. Internally, rising costs associated with pension obligations and othe r post-employment benefits c ontinue to exert financial pressure. Externally, factors such as global economic perfo rmance, shifting trade patterns, workforce shortages, and geopolitical instability pose additional risks to the broader economic conditions underpinning the City’s financial forecasts.

The local economy is poised to navigate a dynamic year ahead, with opportunities to address challenges stemming from the pandemic's lasting effects and rising inflation. Wh ile these factors require careful attention, the City has seen encouraging growth in general revenues over the past year, providing a solid foundation for future planning.

By maintaining a focus on prudent fiscal management and strategic planning, the City is well-positioned to adapt to inflationary pressures and manage rising post-employment benefit costs, ensuring continued financial stability and service delivery.

To further complicate other local challenges, legislative factors threaten to wallop a major revenue source for the City. California's Advanced Clean Trucks (ACT) Re gulation, implemented by the California Air Resources Board (CARB), aims to accelerate the adoption of zero-emission vehicles (ZEVs) by mandating that manufacturers of medium- and heavy-duty vehicles sell an increasing percentage of ZEVs each year. This regulation impacts vehicles with a Gross Vehicle We ight Rating (GVWR) over 8,500 pounds, which includes many motorhomes and RVs. The ACT regulation has led some chassis manufacturers to halt sales of traditional internal combustion engine chassis for motorhomes in California, due to the lack of ZEV chassis suitable for RVs.

As a result, starting in 2025, there may be a near-total ban on the sale of new motorhomes in California and other states adopting similar regulations, unless manufacturers can comply with the ZEV sales requirements. Cities, like Colton, heavily reliant on sales tax revenue from RV dealerships could experien ce a significant decline in sales if new RVs cannot be sold due to the regulation. While the City of Colton has worked to diversify its

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economic base to reduce dependence on a single industry for sales tax revenue, its sales tax revenue is largely dependent upon the performance of four major RV and bus sales vendors in the City.

The City of Colton’s financial foundation strengthened signi ficantly for the year ending June 30, 2024, reflecting the success of prudent long-term policy decisions a nd sound fiscal management. Looking ahead, the City's economic health and sustainability w ill rely on maintaining robust reserves, adhering to fiscally responsible budgets and policies, and actively pursuing strategic econom ic development opportunities. By closely monitoring key economic indicators, the City rema ins well-positioned to adapt its revenue strategies and spending priorities, ensuring financial resilience and continued fiscal responsibility.

Long-Term Financial Planning
The City has adopted conservative budgeting strategies, wh ereby 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 transactions and use tax, Measure S, to address long-term sustainability, inflation, a nd 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 Fina nce Committee and the City Council to address long-term financial strategies to ensure sustainability despite the specific challenges that face the City: rising costs related to annual pension contributions, OPEB liabilities, the pressures of providing new services for emerging issues, such as homelessness, recruitment and retention of a talented and diverse workforce, and strategically planning for future economic hurdles.

Relevant Financial Policies
The City’s accounting records for general government activ ities are maintained on a modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received, and the liabilities are incurred. Acc ounting 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 th e Department Heads and is submitted to City Council for review and approval before the end of the current year . The City of Colton exercises budgetary control at the fund level, which is the legal level of control approved by the City Council. This means that expenditures within each fund cannot exceed the total budgeted amounts without prior approval from the City Council. The adopted budget serves as the foundation for the City’s financial pl anning and control. Budgetary authority is granted annually by the City Council, and any amendments or adjustments to the budget require formal action by the Council to ensure adherence to the City’s fiscal policies and legal requirements. This system of budgetary control reflects the City’s commitment to ma intaining financial accountability and transparency while ensuring that public funds are used in accordance with the priorities established by the governing body.

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 ot her things, the policy provided a mechanism to commit surpluses for the City’s pension and OPEB liabilities a nd 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 pe nsion and OPEB of $1 9,820,872 and $7,793,1 03, 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.

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AWARDS AND ACKOWLEDGEMENTS

The Government Finance Officers Association (GFOA) aw arded a Certificate of Achievement for Excellence in Financial Reporting to the City of Colton for its comprehe nsive annual financial report CAFR for the fiscal year ended June 30, 2023. The Certificate of Achievem ent from the GFOA and the Certificate of Award for Outstanding Financial Reporting from the CSMFO is valid for one year. To be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, the contents of which conform to the program st andards. Such report must also satisfy both U.S. GAAP and applicable legal requirements. We believe that our current A nnual 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 completion of the fiscal year 2023-24 audit is a testament to the hard work and dedication of the Finance Department team and the invaluable support from staff across various City de partments. We extend our gratitude to all those who contributed to the preparati on of this report. Additionally, we deeply appreciate the steadfast leadership and guidance of the City Council. Their consistent support forms the cornerstone of a prosperous and stable future for our City. Together, th rough continued collaboration and shared commitment, we will uphold the fiscal health and sustainability that our community deserves.

Respectfully submitted,

Bill Smith, City Manager Stacey Dabbs, Finance Director

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR) CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

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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, 2024, 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, 2024, 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.

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.

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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.

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.

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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the CalPERS pension plans – schedule of proportionate share of the net pension liability and the schedule of contributions – safety plans, the schedule of changes in the net pension liability and related ratios and the schedule of contributions – miscellaneous plan, and the other postemployment benefit plan – schedule of changes in the total OPEB liability and related ratios, identified as Required Supplementary Informat ion (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, is the responsibility of management and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate oper ational, economic or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the informat ion for consistency with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

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

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated December 16, 2024, 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 16, 2024

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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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 fi nancial activities of the City of Colto n for the fiscal year ended June 30, 2024. 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 2022-23.

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 C ity exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $222,690,188 ( net position). The two components of this total are: $53,049,398 in governmental activities and $169,640,790 in business-type activities.  Overall, the City’s total net position increased by $30,349,065, or 20.8%.  As of the close of the current fiscal year, ge neral fund unassigned fund balance was $12,791,400, and balances committed for the City’s pension and O PEB liabilities total $28,10 7,984 and $12,515,145 respectively.
 Long-term liabilities related to Gove rnmental Activities decreased by $2,650,355 or 6.8%, and long-term liabilities related to Business-type activities decreased $3,784,209, or 9.0%, over the prior year.  As of the close of the fiscal year, the City’s gov ernmental activities reported a combined ending net position of $53,049,398, an increase of $15,689,498, or 42.0%, over the prior year.  As of June 30, 2024, total long-term liabilities of the governmental activities and business-type activities include net pension liabilities of $108,129,940 and $22,649,1 41 respectively, which represents increases of $6,143,246, or 6.0%, and $275,883, or 1.2%, resp ectively. As of June 30, 2024, total long-term liabilities of the governmental activities and business- type activities include net OPEB liabilities of $34,103,655 and $9, 758,576 respectively, which represents increases of $2,294, 036, or 7.2%, and $322,694, or 3.4%, 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 st atements 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 e xpenses 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 whethe r 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, 2024

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

Both government-wide financial statements distinguish f unctions 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 re ported 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 occupa ncy 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 a nd spending for a particular purpose. Certain funds are required by state law and bond covenants. However, a dditional funds have been established to assist with controlling and managing mone y 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 repor ted in governmental funds, which focus on how money flows in and out of those funds and year-end balances that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short- term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fe wer financial resources that can be spent in the near future to finance the City’s programs. The differenc es between the results in the governmental fund financial statements to those in the government-wide financial st atements are explained in a reconciliation following each governmental fund financial statement.

In addition to the major funds reported separately on the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund ba lances, the City also maintains 18 special revenue funds, 3 capital project funds, and 2 debt service funds. Data from these funds are combined into a single, aggregated presentation referred to as other governmental funds. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements after the notes section of the report.

The City adopts an annual appropriated budget for all of its governmental and pr oprietary funds. Budgetary comparison statements have been provided for the Gene ral Fund to demonstrate compliance with this budget.

This comparison is available on page 30 of this report.

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

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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Proprietary funds . When the City charges customers for th e services it provides, these services are generally reported in proprietary funds. The City maintains two di fferent types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Electric, Water and Wastewater activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for its insurance programs, information services department and faciliti es/equipment maintenance ac tivities. 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 ty pe of information as the government-wid e financial statements with more detail. The proprietary fund financ ial statements provide separate info rmation for the Electric, Water and Wastewater operations, all of which are considered major funds of the City. The City’s internal service funds combined are shown separately under the heading Governmental Activities – Internal Service Funds.

The basic proprietary fund financial statements are available on pages 32-36 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 fina ncial statements because the resources of these funds are not available to support the City’s programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City’s fiduc iary activities are reported in a separate Statement of Fiduciary Net Position. Individua l fund data for each of these fiduciary funds is provided in the form of combining statements after the notes section of the report. The C ity currently has two custodial funds and two private-purpose trust funds. The Successor Agency of the former Redevelopment Agency (RDA) is accounted for as a private-purpose trust fund.

The basic fiduciary fund financial statements are available on pages 37-38 of this report.

Notes to the financial statements . The notes provide additional inform ation that is essential to a full understanding of the data provided in the government-w ide and fund financial statements. The Notes to the financial statements are available on pages 39-89 of this report.

Required Supplementary Information. Required actuarial valuation schedules and underlying assumptions for Safety and Miscellaneous CalPERS Pens ion Plans and the schedule of progress for the Other Post-Employment Benefits (OPEB) Plan are contained in this section. Required Supplementary Information is available on pages 91-101 of this report.

Other information . In addition, the combining statements re ferred to earlier in connection with non-major governmental funds, internal service funds and fiduciary funds are presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules are available on pages 103-115 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As referenced earlier, net position may ser ve over time as a useful indicator of a government’s financial position.

At the end of the current year, total City assets a nd deferred outflows of resources exceeded liabilities and deferred inflows of resources by $222,690,188, an increase of $38,349,065 over the prior year. Of this net increase, governmental activities net position increased by $15,689,498 and business-t ype activities increased by $22,659,567. The underlying reasons for major changes in each of these co mponents will be discussed in the following sections.

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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Governmental Activities

In the case of the City, government al activities increased the City of Colton’s net position by $15,689,498, a

42.0% 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 r esources for governmental activities increased $21,691,653, or 8.7%.

Total assets government-wide increased by $45,476,8 34, or 10.6% because of increases capital assets and revenues that exceeded expenses. Tota l revenues increased by $ 33,241,926, or 21.0%, wh ich is attributed to growth in charges for services, sales taxes, property taxes, investment income franchise taxes, and motor vehicle in lieu, which were offset by decreases in operating gran ts and contributions, transi ent occupancy taxes, other taxes, and other revenue. Increases in the Sales Tax re venue category resulted from recognition of a full year of the 1% local district transactions and use tax resulti ng from voters’ approving Measure S. Property tax revenue growth resulted from the annual maximum of 2% increase in assessed values, the full market value reassessments upon sale or transfer of real property, and new economic development. The City’s governmental expenses were $20,610,414 higher in comparison to the pr ior year, with year-over-year increases in General Government, Public Safety, Community Services, and Public Works expenses, which were offset by reductions in the Interest on long-term debt category. Inflati on and economic conditions have been the primary driving factors in the increased operational expenses, but a growing City of Co lton workforce, increased pension expenses, and labor plan adjustments to align compensation with market conditions also contributed. The City’s total governmental revenues and transfers of $83,875,530 exceeded gove rnmental expenses of $68,186, 032. This $15,689,498 increase in Governmental Activities increased the City’s total net position by 42.0%.

2024 2023 2024 2023 2024 2023
Current and Other Assets 133,506,922$ 114,276,930 $ 229,049,021 $ 115,397,591 $ 362,555,943 $ 229,674,521 $ Capital Assets 90,623,144 86,147,337 22,041,927 113,922,322 112,665,071 $ 200,069,659 $ 224,130,066 200,424,267 251,090,948 229,319,913 475,221,014 429,744,180 Total Assets
Deferred Outflow of Resources 45,672,413 47,686,559 8,197,124 9,521,655 53,869,537 $ 57,208,214 $ Long-term Debt Outstanding 179,862,218 173,997,177 71,336,039 74,514,314 251,198,257 248,511,491 Other Liabilities 25,524,085 21,871,784 9,347,670 6,859,204 34,871,755 28,730,988 Total Liabilities 205,386,303 195,868,961 80,683,709 81,373,518 286,070,012 277,242,479 Deferred Inflow of Resources 11,366,778 14,881,965 8,963,573 10,486,827 20,330,351 25,368,792 Net Position:

Net Inv estment in Capital
Assets 83,306,965 77,436,477 81,579,018 79,504,413 164,885,983 156,940,890 Restricted 35,704,070 33,348,496 3,879,459 3,722,910 39,583,529 37,071,406 Unrestricted (65,961,637) (73,425,073) 84,182,313 63,753,900 18,220,676 (9,671,173) Total Net Position 53,049,398 $ 37,359,900 $ 169,640,790 $ 146,981,223 $ 222,690,188 $ 184,341,123 $ Governmental Activities Business-Type Activities Government-Wide Totals City of Colton's Net Position
As of June 30

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

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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2024 2023 2024 2023 2024 2023
Revenues
Program Revenues:

Charges for Services 11,355,047 $ 8,702,663 $ 113,159,782 $ 95,032,967 $ 124,514,829 $ 103,735,630 $ Operating Contributions and Grants 4,972,533 7,690,358 256,200 73,800 5,228,733 7,764,158 Capital Contributions and Grants 5,221,506 5,210,696 5,221,506 5,210,696 General Revenues:

Property Taxes 16,196,157 15,142,416 16,196,157 15,142,416 Sales Taxes 23,497,844 16,432,934 23,497,844 16,432,934 Other Taxes 3,740,192 3,915,070 3,740,192 3,915,070 Use of Money and Property 7,550,599 3,163,201 5,059,957 2,063,578 12,610,556 5,226,779 Other 272,570 612,778 - - 272,570 612,778 Total Revenues 72,806,448 60,870,116 118,475,939 97,170,345 191,282,387 158,040,461 Expenses
General Government 5,893,460 3,285,303 5,893,460 3,285,303 Public Safety 43,218,277 26,007,014 43,218,277 26,007,014 Community Services 9,422,873 9,134,013 9,422,873 9,134,013 Public Works 8,235,021 7,640,099 8,235,021 7,640,099 Interest on long-term debt 1,416,401 1,509,189 1,416,401 1,509,189 Electric 61,161,193 63,630,884 61,161,193 63,630,884 Water 12,129,931 10,459,233 12,129,931 10,459,233 Wastewater 11,456,166 10,470,499 11,456,166 10,470,499 Total Expenses 68,186,032 47,575,618 84,747,290 84,560,616 152,933,322 132,136,234 Increase/(Decrease) in Net
Position Before Transfers 4,620,416 13,294,498 33,728,649 12,609,729 38,349,065 25,904,227 Transfers 11,069,082 9,061,987 (11,069,082) (9,061,987) - - Increase/(Decrease) in Net Position 15,689,498$ 22,356,485 $ 22,659,567 $ 3,547,742 $ 38,349,065 $ 25,904,227 $ Net Position - Beginning of Year, 37,359,900$ 15,003,415 $ 146,981,223 $ 143,433,481 $ 184,341,123 $ 158,436,896 $ as restated
Net Position - End of Year 53,049,398 $ 37,359,900 $ 169,640,790 $ 146,981,223 $ 222,690,188 $ 184,341,123 $ Governmental Activities Business-Type Activities Government-Wide Totals City of Colton's Changes in Net Position
Fiscal Year Ended June 30

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

Function/Program Total Cost of Serv ice Net Cost of Serv ice General Government 5,893,460 $ (2,273,511) $ Public Safety 43,218,277 (40,291,952)
Community Services 9,422,873 (3,597,981) Public Works 8,235,021 942,899
Interest on Long-Term Debt 1,416,401 (1,416,401) Total Gov ernmental Activ ities 68,186,032$ (46,636,946) $ Cost of Governmental Programs

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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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.

Type of Business Total Cost of Service Net Cost of Service Electric Utility 61,161,193 $ 28,816,755 $
Water Utility 12,129,931 1,322,118
Wastewater Utility 11,456,166 (1,470,181)
Total Business-Type Activ ity 84,747,290$ 28,668,692 $ Business-Type Activities

Business-type activities increased the City’s net position by $22,659,567. The major components are as follows:

Electric Utility
The Electric Utility operations net cost of service increased $20,854,139 over the prior year. Operating revenues increased $19,490,614, or 28.0%, due to the full-year continuation of a Power Cost Adjustment (PCA) while operating expenses decreased by $1,579,1 28, or 2.5%, due to a $7,338,828, or 17.2%, decrease in Purchased Power, which was offset by a 2,159,083, or 58.9% increase in Maintenance & Operations, a $1,859,344, or 27.1% increase in Salaries and Benefits, and increases in the Generation, Charges from Other Funds, and Depreciation and Amortization categories.

Water Utility
Water Utility sales and charges for current services increas ed by $273,310, representing a 2.1% growth. During the fiscal year, Water Utility operating expenses increased $1,953,537, or 19.4%, which was due to increases in all major categories, and specifically a $952,102, or 20.7%, increase in Maintenance & Operations expenses and a $637,546, or 19.9%, increase in Salaries & Benefits expenses.

Wastewater Utility
Operating revenues decreased by $348,543 or 3.4% ove r the prior period. Operating expenses increased by $1,233,016 or 11.8%, composed mostly of a $629,819, or 13.7% increase in Maintenance & Operations expenses and a $431,611, or 19. 9%, increase in Salaries and Benefits expenses. New wastewater rates were implemented for billing cycles beginning July 1, 2024.

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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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 particul ar, 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 87,907,818, an increase of $13,349,387, or 17.9%, over the prior year. Of this balance, $382,249, or 0.4% is classified as non-spendable for inventory, notes receivable, and prepaid costs; $34,795,214 or 39.6% is considered legally restricted fund balance to fund such areas as capital projects, public safety, debt service, and other services; an additional $40,623,129, or 46.2%, represents balances committed by the City Council for pension and OPEB liabilities; and the remaining 13.8%, or $12,107,226, is considered unassigned fund balance.

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

The General Fund is the major operating fund of the City. At the end of the current fiscal year, the General Fund’s unassigned fund balance was $12,791,400, or 23.8% of its total fund ba lance of $53,796,778. 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 Co uncil adopted Resolution R-91- 17, a General Fund Balance Policy which seeks to fund unfunded liabiliti es 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, 2024, committed balan ces for pension and OPEB liab ilities are $28,107,984 and $12,515,145 respectively, which represent 26.0% and 36.7% of the net pension and OPEB liabilities for governmental funds respectively. The total General Fund ending fund balan ce was $8,640,592, or 19.1%, more than the previous year’s fund balance. The General Fund’s top three re venue categories for the year, namely sales tax, property tax, and investment income, saw a combined increase of $9, 766,798, or 28.8%, over the prior year, mostly due to a 6,964,910 increase in sales tax related to the full year’s recognition of Measure S, the City’s local district transactions and use tax, revenue. Property tax revenue growth resulte d from the annual maximum of 2% increase in assessed values, th e full market value reassessments upon sale or transfer of real property, and new economic development.

Revenue Category Amount Percent of Total
Sales Tax 23,497,844 $ 41.8%
Property Tax 16,196,157 28.8%
Other Taxes 3,740,192 6.6%
Licenses and Permits 3,138,588 5.6%
Intergovernmental 1,438,430 2.6%
Charges for Services 3,091,326 5.5%
Use of Money and Property 3,972,508 7.1%
Fines and Forfeitures 808,736 1.4%
Miscellaneous 368,171 0.7%
Total General Fund Revenue 56,251,952$ 100%
Revenue by Source - General Fund

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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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 ch anges in cost and revenue estimates. All amendments that result in a net change in estimated revenue or appropriations in any given fund are approved by City Council. The General Fund grouping schedule, for financial statement presentation purposes, include Refuse Fund accounts.

Budget to Actual
The General Fund original budget projected revenues and appropriations at $63, 231,129 and $62,654,057 respectively.

With respect to revenue, projections increased by $1,469,8 01 throughout the course of the year, mainly during the mid-year budget review process and subsequent actions ta ken to City Council for increases. Actual revenues received for the fiscal year exceeded projections by $2,1 72,721 for a total of $66, 870,651 in General Fund revenues, including transfers. The positive budget variances pe rtain mostly to an increase in property taxes, sales, charges for services, and licenses and permits, which we re 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 amende d appropriations increased the budget by $4,250,706. Although there were a number of changes to the original budget, the largest increases were due to the roll of open purchase orders and approved carryover requests from the prior year as well as other operational adjustments made at mid-year.

Actual total expenditures came at $58,233,059, or $8,671,704 under-budget, primarily due to positive variances in almost every category, but specifically in Police, Fire , Community Services, Community Development, Public Works, and the General Government Departments.

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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CAPITAL AND LEASE ASSETS AND DEBT ADMINISTRATION

Capital and Lease Assets
The City’s net investment in capital and lease assets for its governmental and business-t ype activities as of June 30, 2024, was $203,427,315, which represen ts an increase of $3,357,656, or 1.7%, over the prior year. This investment in capital and lease 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):
 FY 23/24 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 Alley Paving and Sidewalk Project on the following locations:

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

 Downtown Paseo Project

 Corporate Yard Block Wall Construction Project

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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

 Washington Street Bikelane Project

 La Cadena/Valley Blvd. Traffic Signal Modification Project

 FY 23/24 Asphalt Paving Project:

1. Meridian Ave. (350’ North of Valley Blvd. to San Bernardino Ave.)

2. Rancho Ave. (Agua Mansa Rd. to Cement Plant Rd.)

3. Pepper Ave. (UPRR Bridge. to Slover Ave.)

4. Citrus Ave. (Rancho Ave. to Watwood Ave.)

5. Pleasant Valley Ct. (Hidden Valley Ln. to West End)

6. Duron St. (Cooley Dr. to Cameron St.)

7. Cooley Dr. (Via Venito to Ashley Way)

8. Iowa Ave. (I-215 to Main St.

9. 2nd Street (Valley Blvd. to South End)

10. 5th Street (N St.-Maple St.)

11. 12th Street (O St.-N St.)

12. Bryce Ct.(Canyon Dr.-End)

13. Cameron St.(North-South end)

14. Carbon Ct.(Canyon Dr.-End)

15. Cordillera Ave.(Bridge St.-Trail Ct.)

16. Crescent (Cordillera North to South end)

17. H Street (Rancho Ave. – Grand Ave.)

18. Laurel Lane (Maple St. - South end)

19. Mountain View Ln. (Old Ranch-South end)

20. Replace Concrete with Asphalt Pavement: O Street (La Cadena Dr. to 7th St.)

21. Asphalt Paving: Dog Park Access Road

 CDBG Funded Project on the following locations:

1. Alley Paving between 7th Street to La Cadena Drive, north of C Street.

2. Alley Paving between Hanna Street and Olive Street, La Cadena Drive and 9th Street.

3. Alley Paving between G Street and H Street, 3rd Street to 4th Street.

4. Alley Paving between F Street and G Street, 12th Street to west end.

5. Alley Paving between K Street and L Street, 5th Street to east end.

6. Alley Paving between L Street and M Street, 5th Street to east end.

7. Alley Paving between N Street and O Street, 7th Street to west end.

8. Alley Paving between 9th Street and 10th Street, north of G Street

9. Alley Paving between 9t & 10th - From Olive St to North End

10. Alley Paving bet. 9th and La Cadena - From Olive St to North End

11. Alley Paving Between Palm and Colton Ave - From Larch to Fairview

12. Alley Paving Between N St and O St - From 9th St to 10th St

13. Alley Paving West of 7th St - North of E St.

14. Alley Paving West of 7th St - North of F St.

15. Chavez Park Parking and ADA Improvement

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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 Development – Completed plan check and issued construction permits for grading, hydrology, water quality management plan, off/on-site improvement for the following projects:
 Commercial/Live-Work Commercial Buildings at 200 W. Congress St.  Commercial Donut Shop at 736 W. Valley Blvd.
 Gasoline Station Redevelopment at 791 E. Valley Blvd.  Commercial development of an auto part re tail store (O’Reilly Auto Parts) at 1790 W.

Washington St.
 La Quinta Hotel located at 1395 E. Washington St.
 Multi-Family Development of 49 Townhomes located at 1116 Santo Antonio Dr.  5-Unit Apartment Complex at 300 W. Congress St.
 Dual Single Family Residences (Duplex) + ADU at 960 S. 5th St.  Dual Single Family Residences (Duplex) + Two ADUs at 1034 Colton Ave.  Single Family Residence at 3022 Parvin Ln.
 Single Family Residence at 258 Stephen St.
 Single Family Residence at 644 S. Laurel St.
 Single Family Residence + ADU at 294 W. “O” St.
 Dual Single Family Residences (Duplex) + Two ADUs
 Accessory Dwelling Unit (ADU) at 381 Fur St.
 Accessory Dwelling Unit (ADU) at 1475 N. Holly St.
 Accessory Dwelling Unit (ADU) at 1500 Latham St.
 Accessory Dwelling Unit (ADU) at 1862 Terrace Ave.
 Accessory Dwelling Unit (ADU) at 1338 Highland St.
 Accessory Dwelling Unit (ADU) at 1636 Bryn Mawr Ct.

Business-Type Activity

Electric Department
Substation
 Completed Projects
 Installed 2,065 Bridge Open Way AMI Meters (1,901 residential and 164 commercial)  Tested all substations’ Battery Banks
 Replaced damaged Battery Bank at Drew’s Substation
 Upgraded communication network for CAISO meters
 Oil testing of all substations and Agua Mansa Power Plant transformers  Purchased lockrings
 Ongoing/Future Projects
 Transformer LTC #1 & #2 Oil Filtering at Drews Substation  Confirm and update Hub Substation drawings
 Complete Hub Transformer #3 66kV circuit breaker installation  Update CEU’s Physical Security Plan
 Install proactive video monitoring systems at all substation and switchyard facilities  Replace Hub Battery Bank
 Test distribution feeders’ protection relays at all Subs (Hub, Century, Drew’s, North, and West)  Test 12kV distribution feeders’ circuit breakers at all Subs  Preventative maintenance of Drew’s Transformers #1 & #2  Test Hub Transformer #3
 Purchase replacements for 66kV GIS circuit breakers
 Purchase and install 3,000 Bridge Open Way AMI el ectric meters for residential and commercial applications
 Purchase and install 3,000 meter lockrings

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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 Install Advance Metering Infrastructure (AMI) for the electric meters

Transmission & Distribution
 Ongoing/Future Projects
 Pole and cable replacements
 Tree clearance, composite fiberglass arm replacements, and extra patrols for wildfire mitigation  LED Dusk-to-Dawn replacements

Sustainability & Conservation
 Completed Projects
 Engineering for the installation of fast chargers for the City Yard

Water Department
 Completed Projects
 Well 31 – Construction & Equipping of New Well at Fogg Street  Demolition of Rialto Concrete Reservoir
 Well 33 – Engineering and Design for new Well Pumping Plant at Rialto Site.  16” F Street Transmission Line – Installation of a new 16-Inch DIP transmission waterline La Cadena Drive to Mt. Vernon Ave .
 La Loma Reservoir (3MG) Project – Completed th e Engineering design for the construction of new 3MGD Reservoir at the La Loma Site.
 La Cadena Drive Watermain Project – Relocation of existing water main along la Cadena Drive  Reservoir Diving Project – Assessment and Inspection of existing Reservoir citywide

 Ongoing/Future Projects
 De Berry Watermain Project – Jack and bore and replacement of water main  Construction of La Loma Reservoir (3MG) Project ($8M)– Project is scheduled to start August 2024.
 Valley Blvd Water Project – Relocation of waterline along Valley Blvd.  Walnut Booster Station – Engineering & Design for the booster station to serve both Western Zone and Central Zone. Plans and Design 20%.
 Well 22 – Engineering & Design for the upgrade of Well 22 to serve Reche Canyon Zone I & II.

Plans and Design 20%.
 Well 24 – Engineering, Design and Construction for the building upgrades of Well 24. Plans and Design 50%.
 5MG Tank Rialto Project –Notice of Award was issued on December 21, 2021, plans and design 90% complete.
 Montecito Reservoir Project – Engineering, Desi gn and Construction fo r the rehabilitation of Montecito Reservoir.
 Lead and Copper Rule Service Line Inventory

Wastewater Department
 Completed Projects
 Wastewater Treatment Plant – Completed th e Engineering & Design for the upgrade and expansion of the WWTP ($2.6M).
 Center Street Lift Station Project – Complete d the Engineering and Design of a new sewage lift station to serve the new the Roquet Ranch Tract development.  Wastewater Treatment Plant paving and installation of temporary administration office

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CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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 Ongoing/Future Projects
 Wastewater Treatment Plant Upgrade and expans ion ($87M) – Constructi on is postponed due to funding.
 Lake Cadena Sewer Mainline Project – Construction and relocation of sewer main  New Wastewater Treatment Plant Admin Building – Project on hold pending rate study and bond financing.
 RIX Facility – On-going Project Upgrades and Sand Replenishment  Lake Cadena Sewer Mainline Project – Curre ntly under design 80% complete. Postponed pending the development of Roquet Ranch Tract

Additional information on the City’s capital assets is available in Note 6 on pages 58-59 of this report.

2024 2023 2024 2023 2024 2023
Land $15,306,911 $15,306,911 $6,269,991 $6,269,991 $21,576,902 $21,576,902 Construction in progress 12,568,706 14,499,777 4,550,372 9,377,995 17,119,078 23,877,772 Intangible Assets 320,000 328,000 320,000 328,000
S tructure and Improvements 20,777,046 14,855,310 12,940,936 13,572,682 33,717,982 28,427,992 Furniture and Equipment 5,283,928 4,008,444 18,052,885 15,348,107 23,336,813 19,356,551 C apacity Rig hts - - 2,920,007 3,052,734 2,920,007 3,052,734 Infrastructure 36,604,909 37,371,773 67,351,793 65,787,448 103,956,702 103,159,221 Net Rig ht to Use Assets - Eq u ip 22,185 - 344,443 77,875 366,628 77,875 Net S ubscription Assets 59,459 105,122 53,744 107,490 113,203 212,612 To t a l 90,623,144$ 86,147,337 $ 112,804,171 $ 113,922,322 $ 203,427,315 $ 200,069,659 $ City of Colton's Capital Assets at June 30
(net of depreciation)
Business-T ype
Activities T otal
Governmental
Activities

Long-Term Debt

Governmental Activities
The City did not enter into any new debt agreements during the fiscal year. Overall, long-term debt for governmental activities was $36,121,221, a decrease of $2,650,355, or 6.8%, as compared to the prior year. The primary components of the debt are the Taxable Pension Funding Bonds, Series 2007 with a balance of $18,408,490, Claims and Judgements with an estimated liability of $6,230,073, and the Public Finance Authority Lease Revenue Bonds, 2007 Series B, which has a balance of $6,580,000 as of June 30, 2024.

Proprietary Funds
The major components of long-term debt for business-type activities are bonds to finance infrastructure needs of the City’s utilities. Overall, long-term debt for proprietary funds is $38,496,987, a decrease of $3,784,209, or

9.0%, 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 underlying S&P Global rating on the Colton Utility Authority Water/Sewer is A+/stable. The Colton Public Financing Authority for the Electric Utility issuances maintains an A2 stable rating with Moody’s.

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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Additional information on the City’s long-term debt is available in Note 8 on pages 61-69 of this report.

2024 2023 2024 2023 2024 2023
Revenue bonds 6,580,000 $ 7,160,000 $ $36,916,567 $40,653,900 43,496,567 $ 47,813,900 $ Capital lease obligations - 137,188 - - - 137,188 Taxable Pension Bonds 18,408,490 19,481,182 - - 18,408,490 19,481,182 Notes Payable - - 367,857 726,743 367,857 726,743 S ubscription Liability 51,829 123,762 53,735 106,235 105,564 229,997 Lease Liability 22,417 - 351,126 78,423 373,543 78,423 Compensated absences 3,054,523 2,639,527 807,702 715,895 3,862,225 3,355,422 Other long-term liabilities 8,003,962 9,229,917 - - 8,003,962 9,229,917 To t a l 36,121,221$ 38,771,576 $ $38,496,987 $42,281,196 74,618,208 $ 81,052,772 $ City of Colton Outstanding Debt at June 30
Business-T ype
Activities T otal
Governmental
Activities

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

Although the focus of this Annual Fina ncial Report is the econom ic condition of the City for the fiscal year ending June 30, 2024, management con tinued to consider the economic uncer tainty cause by the civil unrest in Russia, Ukraine and Gaza, as well as the upcoming Nove mber 2024 Presidential election when adopting the Fiscal Year 2024-25 budget. Although the U.S. economy’ s performance in the past fiscal year has surpassed expectations, significantly increased inflation and some consumer fears about the ec onomy continue to challenge business leaders and legislators.

The U.S. economy ended 2023 with GDP growing to 3.3%, compared with an increase of 2.1% in 2022. The increase in real GDP in 2023 primarily reflected increases in consumer spe nding, exports, inventory investment that were partly offset by a decrease in housing inv estment. As for unemployment, the national rate in 2023 dropped to 3.6 percent, which is the same national rate for unemployment in 2022.

The City’s elected and appointed officials consider many economic factors when recommending and adopting the budget, including national, state, a nd local economic conditions , trends in housing and business, and the unique needs of the community. The City has significantly im proved 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 deve lopment to ensure a stable financial fu ture. 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-em ployment benefits for pens ions and retiree medical continue to require ongoing disciplined management and planning to sustain Colton into the future. A copy of the City’s 2024-25 budget is accessible in electronic format on the Finance Department’s page of the City’s website (www.coltonca.gov) or by contacting the Finance Department (see below).

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024

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CONTACTING THE CITY’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Colton’s finances and to show the City’s accountability for the money it receives.

Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City’s Finance Depa rtment 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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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

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BASIC FINANCIAL STATEMENTS

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION
JUNE 30, 2024

See accompanying Notes to Financial Statements.
(23)

Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments 119,911,971 $ 95,307,832 $ 215,219,803 $ Receivables:

Accounts 1,041,857 13,432,078 14,473,935 Taxes 4,835,372 - 4,835,372 Lease 4,247,003 7,380,062 11,627,065 Notes and Loans 12,685 - 12,685 Accrued Interest 1,549,467 995,131 2,544,598 Internal Balances (3,863,013) 3,863,013 - Prepaid Items 187,570 330,358 517,928 Prepaid Bond Insurance - 10,000 10,000 Deposits - 3,628,271 3,628,271 Due from Other Governments 2,174,736 131,495 2,306,231 Inventories 182,294 1,986,973 2,169,267 Land Held for Resale 84,131 - 84,131 Restricted Assets:

Cash and Investments 106,092 - 106,092 Cash with Fiscal Agent 3,036,757 11,221,564 14,258,321 Capital Assets Not Being Depreciated 27,875,617 10,820,363 38,695,980 Capital Assets, Net of Accumulated Depreciation 62,747,527 101,983,808 164,731,335 Total Assets 224,130,066 251,090,948 475,221,014

DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Refunding 7,797 56,352 64,149 Deferred Amount from OPEB 9,042,563 2,587,480 11,630,043 Deferred Amount from Pensions 36,622,053 5,553,292 42,175,345 Total Deferred Outflows of Resources 45,672,413 8,197,124 53,869,537

LIABILITIES
Accounts Payable 3,591,377 7,370,110 10,961,487 Accrued Interest 399,924 428,417 828,341 Unearned Revenues 19,345,678 - 19,345,678 Deposits Payable 566,209 1,549,143 2,115,352 Due to Other Governments 1,620,897 - 1,620,897 Noncurrent Liabilities:

Due Within One Year 6,447,297 4,835,375 11,282,672 Due in More than One Year 29,673,924 33,661,612 63,335,536 OPEB Liability - Due Within One Year 1,507,402 431,335 1,938,737 OPEB Liability - Due in More than One Year 34,103,655 9,758,576 43,862,231 Net Pension Liability - Due in More than One Year 108,129,940 22,649,141 130,779,081 Total Liabilities 205,386,303 80,683,709 286,070,012

DEFERRED INFLOWS OF RESOURCES
Deferred Amount Related to Leases 3,920,114 7,190,180 11,110,294 Deferred Amounts from OPEB 5,504,541 1,575,095 7,079,636 Deferred Amounts from Pensions 1,942,123 198,298 2,140,421 Total Deferred Inflows of Resources 11,366,778 8,963,573 20,330,351

NET POSITION (DEFICIT)
Net Investment in Capital Assets 83,306,965 81,579,018 164,885,983 Restricted:

Public Safety 1,525,258 - 1,525,258 Capital Projects 28,641,447 - 28,641,447 Debt Service 3,311,924 3,879,459 7,191,383 Education 494,836 - 494,836 Affordable Housing 976,819 - 976,819 Air Quality Projects 753,786 - 753,786 Unrestricted (65,961,637) 84,182,313 18,220,676 Total Net Position 53,049,398 $ 169,640,790 $ 222,690,188 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Financial Statements.
(24)

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

General Government 5,893,460 $ 1,481,761 $ 2,138,188 $ - $ Public Safety 43,218,277 2,507,918 418,407 - Community Services 9,422,873 3,646,153 1,745,905 432,834 Public Works 8,235,021 3,719,215 670,033 4,788,672 Interest on Long-Term Debt 1,416,401 - - - Total Governmental Activities 68,186,032 11,355,047 4,972,533 5,221,506 Business-Type Activities:

Electric Utility 61,161,193 89,721,748 256,200 - Water Utility 12,129,931 13,452,049 - - Waste Water Utility 11,456,166 9,985,985 - - Total Business-Type Activities 84,747,290 113,159,782 256,200 - Total Primary Government 152,933,322 $ 124,514,829 $ 5,228,733 $ 5,221,506 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2024

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
(2,273,511)$ - $ (2,273,511)$ (40,291,952) - (40,291,952) (3,597,981) - (3,597,981) 942,899 - 942,899 (1,416,401) - (1,416,401) (46,636,946) - (46,636,946) - 28,816,755 28,816,755 - 1,322,118 1,322,118 - (1,470,181) (1,470,181) - 28,668,692 28,668,692 (46,636,946) 28,668,692 (17,968,254) 16,196,157 - 16,196,157 1,201,898 - 1,201,898 2,403,788 - 2,403,788 134,506 - 134,506 23,497,844 - 23,497,844 66,482 - 66,482 7,550,599 5,059,957 12,610,556 206,088 - 206,088
11,069,082 (11,069,082) -
62,326,444 (6,009,125) 56,317,319 15,689,498 22,659,567 38,349,065
37,359,900 146,981,223 184,341,123
53,049,398$ 169,640,790 $ 222,690,188 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2024

See accompanying Notes to Financial Statements.
(26)

Capital
ARPA Improvements Other Total
Special Capital Projects Governmental Governmental
General Revenue Fund Fund Funds Funds
ASSETS
Cash and Investments 51,441,775 $ 7,597,830 $ 10,571,411 $ 30,583,168 $ 100,194,184 $ Receivables:

Accounts 743,222 - - 298,402 1,041,624 Taxes 4,585,862 - - 249,510 4,835,372 Lease 4,247,003 - - - 4,247,003 Notes and Loans 12,685 - - - 12,685 Accrued Interest 674,714 108,728 138,841 400,226 1,322,509 Prepaid Items 187,270 - - - 187,270 Due from Other Governments 27,950 - 20,874 2,125,912 2,174,736 Due from Other Funds 53,610 - - 7,683 61,293 Inventories 182,294 - - - 182,294 Land Held for Resale - - - 84,131 84,131 Restricted Assets:

Cash and Investments 39,279 - - 66,813 106,092 Cash and Investments with
Fiscal Agents - - - 3,036,757 3,036,757 Total Assets 62,195,664 $ 7,706,558 $ 10,731,126 $ 36,852,602 $ 117,485,950 $

LIABILITIES
Accounts Payable 2,291,666 $ 111,694 $ 55,827 $ 524,789 $ 2,983,976 $ Unearned Revenues - 7,004,747 10,000,000 2,340,931 19,345,678 Deposits Payable 566,209 - - - 566,209 Due to Other Governments 1,620,897 - - - 1,620,897 Due to Other Funds - - - 61,293 61,293 Total Liabilities 4,478,772 7,116,441 10,055,827 2,927,013 24,578,053

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - 20,874 1,059,091 1,079,965 Amounts related to Leases 3,920,114 - - - 3,920,114 Total Deferred Inflows of
Resources 3,920,114 - 20,874 1,059,091 5,000,079

FUND BALANCES
Nonspendable:

Notes Receivable 12,685 - - - 12,685 Prepaid Items 187,270 - - - 187,270 Inventories 182,294 - - - 182,294 Restricted:

Public Safety - 590,117 - 825,370 1,415,487 Capital Projects - - 654,425 27,250,790 27,905,215 Debt Service - - - 3,311,924 3,311,924 Education - - - 431,983 431,983 Affordable Housing - - - 976,819 976,819 Air Quality Projects - - - 753,786 753,786 Committed to:

Pension Obligation 28,107,984 - - - 28,107,984 OPEB Obligation 12,515,145 - - - 12,515,145 Unassigned 12,791,400 - - (684,174) 12,107,226 Total Fund Balances 53,796,778 590,117 654,425 32,866,498 87,907,818 Total Liabilities, Deferred
Inflows of Resources, and
Fund Balances 62,195,664 $ 7,706,558 $ 10,731,126 $ 36,852,602 $ 117,485,950 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

RECONCILIATION TO THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2024

See accompanying Notes to Financial Statements.
(27)

Fund Balances - Total Governmental Funds 87,907,818$
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets, net of depreciation and amortization have not been included as financial resources in governmental fund activity.

Capital Assets 208,240,816$
Accumulated Depreciation and Amortization (120,035,940) 88,204,876 Long-term debt, related items, and compensated absences that have not been included in the governmental fund activity:

County Memorandum of Understanding (1,829,298)
Taxable Pension Funding Bonds, Series 2007 (18,408,490) Lease Revenue Bonds, 2007 Series B (6,580,000)
Deferred Loss on Refunding to be Amortized 7,797
Bond Discount to be Amortized 107,984
Bond Premium to be Amortized (52,575)
SBITA Liability (51,829)
Lease Liability (22,417)
Compensated Absences (2,970,910) (29,799,738) Net pension liability applicable to the City governmental activates is not due and payable in the current period and accordingly is not reported as a governmental fund liability.

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 36,622,053
Deferred Inflows of Resources (1,942,123)
Net Pension Liability (108,129,940)
The Total OPEB liability applicable to the City's governmental activities is not due and payable in the current period and accordingly is not reported as governmental fund liabilities. Deferred outflows of resources and deferred inflows of resources related to OPEB are only reported in the Statement of Net Position, as the changes in these amounts affect only the government-wide statements for governmental activities.

Deferred Outflows of Resources 9,042,563
Deferred Inflows of Resources (5,504,541)
OPEB Liability (35,611,057)
Accrued interest payable for the current portion of interest due on bonds are not reported in the governmental funds. (399,924)
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. 1,079,965
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. 11,579,446 Net Position of Governmental Activities 53,049,398$

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Financial Statements.
(28)

Capital
ARPA Improvements Other Total
Special Capital Projects Governmental Governmental
General Revenue Fund Fund Funds Funds

REVENUES
Property Taxes 16,196,157 $ - $ - $ 633,579$ 16,829,736 $ Sales Taxes 23,497,844 - - - 23,497,844 Other Taxes 3,740,192 - - - 3,740,192 Licenses and Permits 3,138,588 - - - 3,138,588 Intergovernmental 1,438,430 2,127,369 - 9,262,870 12,828,669 Charges for Services 3,091,326 - - 1,631,833 4,723,159 Investment Income 3,972,508 529,375 358,376 1,821,279 6,681,538 Fines and Forfeitures 808,736 - - 48,556 857,292 Miscellaneous 368,171 - - 150,552 518,723 Total Revenues 56,251,952 2,656,744 358,376 13,548,669 72,815,741

EXPENDITURES
Current:

General Government 1,478,759 734,982 - 52,194 2,265,935 Public Safety 41,272,644 - - 566,671 41,839,315 Community Services 8,188,249 - - 1,565,309 9,753,558 Public Works 3,477,954 - - 2,125,490 5,603,444 Capital Outlay 1,047,256 1,392,389 375,648 4,994,565 7,809,858 Debt Service:

Principal Retirement 224,735 - - 2,080,000 2,304,735 Interest and Fiscal Charges 8,062 - - 1,060,405 1,068,467 Total Expenditures 55,697,659 2,127,371 375,648 12,444,634 70,645,312

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 554,293 529,373 (17,272) 1,104,035 2,170,429

OTHER FINANCING SOURCES (USES)
Issuance of Lease 38,031 - - - 38,031 Transfers In 10,583,668 - 210,149 3,228,893 14,022,710 Transfers Out (2,535,400) - - (346,383) (2,881,783) Total Other Financing
Sources (Uses) 8,086,299 - 210,149 2,882,510 11,178,958 NET CHANGE IN FUND BALANCES 8,640,592 529,373 192,877 3,986,545 13,349,387 Fund Balances (Deficits) - Beginning
of Year, as Previously Presented 45,156,186 60,744 - 29,341,501 74,558,431 Change Within the Financial Reporting
Entity (Nonmajor to Major Fund) - - 461,548 (461,548) - Fund Balances (Deficits) - Beginning
of Year, as Restated 45,156,186 60,744 461,548 28,879,953 74,558,431 FUND BALANCES - END OF YEAR 53,796,778$ 590,117 $ 654,425 $ 32,866,498 $ 87,907,818 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 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, 2024

See accompanying Notes to Financial Statements.
(29)

Net Change In Fund Balances - Total Governmental Funds 13,349,387 $ 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 7,675,766
Depreciation and Amortization (3,754,498)
Loss on Disposal of Capital Assets (63,478)
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. (4,768,530)
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, lease, 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 (427,308)
Issuance of Lease Liabilities (38,031)
Principal Repayments:

Loan Obligations 137,188
Taxable Pension Funding Bonds, Series 2007 1,500,000
Lease Revenue Bonds, 2007 Series B 580,000
Lease Payments 15,614
Subscription Payments 71,933
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. 50,159
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. (404,199)
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. (2,407,502) 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. (786,204)
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. 4,973,483 Change in Net Position of Governmental Activities 15,689,495$

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

BUDGETARY COMPARISON STATEMENT BY DEPARTMENT

GENERAL FUND
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Financial Statements.
(30)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 45,156,186$ 45,156,186 $ 45,156,186 $ - $

RESOURCES (INFLOWS)
Taxes 15,390,588 15,750,588 16,196,157 445,569 Sales Taxes 22,860,081 22,557,269 23,497,844 940,575 Other Taxes 3,738,391 3,208,391 3,740,192 531,801 Licenses and Permits 2,392,563 3,136,463 3,138,588 2,125 Intergovernmental 1,418,081 1,686,174 1,438,430 (247,744) Charges for Services 2,200,882 2,582,156 3,091,326 509,170 Investment Income 2,680,000 3,097,000 3,972,508 875,508 Fines and Forfeitures 581,000 458,525 808,736 350,211 Miscellaneous 1,430,000 1,462,514 368,171 (1,094,343) Other Financing Source: Issuance of Lease - - 38,031 38,031 Transfers In 10,539,543 10,761,850 10,583,668 (178,182) Amounts Available for Appropriations 108,387,315 109,857,116 112,029,837 2,172,721

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Current:

General Government:

City Council 204,189 201,112 170,705 30,407 City Clerk 419,460 478,243 403,024 75,219 City Manager 1,337,799 1,304,204 1,088,828 215,376 Human Resources 2,923,679 3,200,896 2,329,795 871,101 Financial Services 4,223,752 4,090,554 3,624,935 465,619 City Attorney 810,000 810,000 671,966 138,034 City Treasurer 68,384 70,826 72,025 (1,199) Nondepartmental - - 1,684,085 (1,684,085) Cost Allocation (10,092,825) (10,092,812) (8,566,604) (1,526,208) Public Safety:

Police 25,980,558 26,432,060 23,568,785 2,863,275 Fire 18,196,582 18,330,143 17,703,859 626,284 Community Services:

Parks, Recreation, and Family Services 4,330,508 5,272,948 4,637,858 635,090 Community Development 5,637,188 7,218,344 3,550,391 3,667,953 Public Works:

Public Services 4,394,331 4,705,346 3,477,954 1,227,392 Capital Outlay 1,719,685 2,204,147 1,047,256 1,156,891 Debt Service:

Principal Retirement - 137,190 224,735 (87,545) Interest and Fiscal Charges - 5,180 8,062 (2,882) Transfers Out 2,500,767 2,536,382 2,535,400 982 Total Charges to Appropriations 62,654,057 66,904,763 58,233,059 8,671,704 BUDGETARY FUND BALANCE - END OF YEAR 45,733,258$ 42,952,353 $ 53,796,778 $ 10,844,425 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

BUDGETARY COMPARISON STATEMENT

ARPA SPECIAL REVENUE
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Financial Statements.
(31)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 60,744$ 60,744 $ 60,744 $ - $

RESOURCES (INFLOWS)
Intergovernmental - 2,400,000 2,127,369 (272,631) Investment Income 250,000 515,500 529,375 13,875 Amounts Available for
Appropriations 310,744 2,976,244 2,717,488 (258,756)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government 3,905,000 2,870,000 734,982 2,135,018 Capital Outlay 2,420,500 8,941,186 1,392,389 7,548,797 Total Charges to Appropriations 6,325,500 11,811,186 2,127,371 9,683,815

BUDGETARY FUND BALANCE - END
OF YEAR (6,014,756)$ (8,834,942) $ 590,117 $ 9,425,059 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2024

See accompanying Notes to Financial Statements.
(32)

Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility T otal Service Funds
ASSETS
Current Assets:

Cash and Investments 59,517,007 $ 25,609,803 $ 10,181,022 $ 95,307,832 $ 19,717,787 $ Receivables:

Accounts 10,391,775 1,898,323 1,141,980 13,432,078 233 Accrued Interest 534,014 331,722 129,395 995,131 226,958 Lease Receivable, Current Portion 496,006 - - 496,006 - Prepaid Items 330,000 60 298 330,358 300 Prepaid Bond Insurance - 10,000 - 10,000 - Deposits 3,628,271 - - 3,628,271 - Due from Other Governments 93,732 37,763 - 131,495 - Inventories 1,799,943 187,030 - 1,986,973 - Restricted Assets:

Cash with Fiscal Agent 3,879,459 3,997,450 3,344,655 11,221,564 - Total Current Assets 80,670,207 32,072,151 14,797,350 127,539,708 19,945,278 Noncurrent Assets:

Lease Receivable, Net of Current Portion 6,884,056 - - 6,884,056 - Capital Assets, Not Being Depreciated 3,489,699 4,907,704 2,422,960 10,820,363 153,209 Capital Assets, Net of Accumulated
De
preciation and Amortization 36,699,269 33,441,893 31,842,646 101,983,808 2,265,059 Total Noncurrent Assets 47,073,024 38,349,597 34,265,606 119,688,227 2,418,268 Total Assets 127,743,231 70,421,748 49,062,956 247,227,935 22,363,546

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 56,352 - - 56,352 - Deferred Amount from OPEB 1,498,015 599,206 490,259 2,587,480 - Deferred Amount from Pensions 3,098,785 1,370,716 1,083,791 5,553,292 - Total Deferred Outflows of Resources 4,653,152 1,969,922 1,574,050 8,197,124 -

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2024

See accompanying Notes to Financial Statements.
(33)

Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility T otal Service Funds

LIABILITIES
Current Liabilities:

Accounts Payable 4,657,497 $ 1,431,354 $ 1,281,259 $ 7,370,110 $ 607,401 $ Accrued Interest 179,405 195,799 53,213 428,417 - Deposits Payable 1,413,528 135,615 - 1,549,143 - Accrued Compensated Absences 451,161 189,594 112,834 753,589 63,312 Accrued Claims and Judgments - - - - 2,055,920 Subscription Payable 17,915 17,910 17,910 53,735 - Lease Payable - 59,030 4,203 63,233 - Total OPEB Liability 249,720 99,888 81,727 431,335 - Bonds and Notes Payable 2,560,000 787,857 616,961 3,964,818 - Total Current Liabilities 9,529,226 2,917,047 2,168,107 14,614,380 2,726,633 Noncurrent Liabilities:

Accrued Compensated Absences 2,806 51,307 - 54,113 20,301 Accrued Claims and Judgments - - - - 4,174,153 Lease Payable - 256,937 30,956 287,893 - Total OPEB Liability 5,649,702 2,259,881 1,848,993 9,758,576 - Net Pension Liability 12,638,412 5,590,476 4,420,253 22,649,141 - Bonds and Notes Payable 13,018,246 15,449,283 4,852,077 33,319,606 - Total Noncurrent Liabilities 31,309,166 23,607,884 11,152,279 66,069,329 4,194,454 Total Liabilities 40,838,392 26,524,931 13,320,386 80,683,709 6,921,087

DEFERRED INFLOWS OF RESOURCES
Amounts Related to Leases 7,190,180 - - 7,190,180 - Deferred Amounts from Pensions 110,652 48,946 38,700 198,298 - Deferred Amount from OPEB 911,897 364,759 298,439 1,575,095 - Total Deferred Inflows of Resources 8,212,729 413,705 337,139 8,963,573 -

NET POSITION
Net Investment in Capital Assets 24,315,122 25,188,964 32,074,932 81,579,018 2,379,223 Restricted for Debt Service 3,879,459 - - 3,879,459 - Unrestricted 55,150,681 20,264,070 4,904,549 80,319,300 13,063,236 Total Net Position 83,345,262 $ 45,453,034 $ 36,979,481 $ 165,777,777 15,442,459 $ Prior Years' Accumulated Adjustment to Reflect the
Consolidation of Internal Service Funds Activities
Related to the Enterprise Funds 1,969,369
Current Year's Adjustment to Reflect the
Consolidation of Internal Service Funds
Activities Related to the Enterprise Funds 1,893,644
Net Position of Business-Type Activities 169,640,790$

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Financial Statements.
(34)

Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility T otal Service Funds

OPERATING REVENUES
Sales and Service Charges 84,011,950 $ 12,904,293 $ 9,557,509 $ 106,473,752 $ 13,531,957 $ Miscellaneous 5,055,173 547,756 428,476 6,031,405 96,387 Total Operating Revenues 89,067,123 13,452,049 9,985,985 112,505,157 13,628,344

OPERATING EXPENSES
Salaries and Benefits 8,731,871 3,835,011 2,602,361 15,169,243 1,760,689 Maintenance and Operations 5,824,081 5,562,233 5,223,536 16,609,850 4,475,845 Generation 2,887,904 - - 2,887,904 - Purchased Power 35,426,463 - - 35,426,463 - Contractual Services - - - - 240,270 Claims and Benefits - - - - 800,181 Charges from Other Funds 5,626,468 1,370,399 2,340,863 9,337,730 - Depreciation and Amortization Expense 3,019,933 1,251,886 1,492,970 5,764,789 232,794 Total Operating Expenses 61,516,720 12,019,529 11,659,730 85,195,979 7,509,779 OPERATING INCOME (LOSS) 27,550,403 1,432,520 (1,673,745) 27,309,178 6,118,565

NONOPERATING REVENUES (EXPENSES)
Intergovernmental 256,200 - - 256,200 - Lease Revenue 654,625 - - 654,625 - Net Investment Income 2,717,751 1,590,260 751,946 5,059,957 820,408 Interest Expense (549,711) (589,468) (167,053) (1,306,232) - Other Expenses - (2,000) - (2,000) - Loss on Disposal of Capital Assets (136,723) - - (136,723) - Total Nonoperating Revenues
(Expenses) 2,942,142 998,792 584,893 4,525,827 820,408 INCOME (LOSS) BEFORE TRANSFERS 30,492,545 2,431,312 (1,088,852) 31,835,005 6,938,973 TRANSFERS OUT (10,832,137) (133,241) (103,704) (11,069,082) (71,845) CHANGE IN NET POSITION 19,660,408 2,298,071 (1,192,556) 20,765,923 6,867,128 Net Position - Beginning of Year 63,684,854 43,154,963 38,172,037 145,011,854 8,575,331 NET POSITION - END OF YEAR 83,345,262$ 45,453,034 $ 36,979,481 $ 165,777,777 $ 15,442,459 $ Adjustment to Reflect the Consolidation of Internal
Service Fund Activities Related to Enterprise Funds 1,893,644$ Change in Net Position - Enterprise Funds 20,765,923

CHANGE IN NET POSITION OF BUSINESS-
TYPE ACTIVITIES 22,659,567$

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Financial Statements.
(35)

Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility T otal Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 91,538,080 $ 13,462,847 $ 10,338,629 $ 115,339,556 $ 13,701,082 $ Cash Paid to Suppliers for Goods and Services (48,402,674) (6,969,950) (7,161,873) (62,534,497) (6,856,423) Cash Paid to Employees for Services (8,683,641) (3,803,231) (2,590,564) (15,077,436) (1,749,889) Net Cash Provided By
Operating Activities 34,451,765 2,689,666 586,192 37,727,623 5,094,770

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Paid to Other Funds (10,925,869) (133,241) (101,978) (11,161,088) (71,845) Grants Received 256,200 - - 256,200 - Net Cash Used by Noncapital
Financing Activities (10,669,669) (133,241) (101,978) (10,904,888) (71,845)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (1,502,644) (2,043,465) (949,893) (4,496,002) (850,811) Subscription Payment (17,504) (17,498) (17,498) (52,500) - Lease Payment - (10,603) (4,052) (14,655) - Principal Paid on Capital Debt (2,430,000) (768,886) (599,511) (3,798,397) - Interest Paid on Capital Debt (836,938) (619,487) (173,250) (1,629,675) - Net Cash Used by Capital and
Related Financing Activities (4,787,086) (3,459,939) (1,744,204) (9,991,229) (850,811)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 2,478,176 1,406,958 676,190 4,561,324 671,567 Net Cash Provided by Investing
Activities 2,478,176 1,406,958 676,190 4,561,324 671,567

NET CHANGE IN CASH AND CASH
EQUIVALENTS 21,473,186 503,444 (583,800) 21,392,830 4,843,681 Cash and Cash Equivalents - Beginning of Year 41,923,279 29,103,809 14,109,477 85,136,565 14,874,106

CASH AND CASH EQUIVALENTS - END
OF YEAR 63,396,465$ 29,607,253 $ 13,525,677 $ 106,529,395 $ 19,717,787 $

CASH AND CASH EQUIVALENTS
Current Cash and Investments 59,517,007 $ 25,609,803 $ 10,181,022 $ 95,307,832 $ 19,717,787 $ Restricted Cash with Fiscal Agent 3,879,459 3,997,450 3,344,655 11,221,564 - Total Cash and Cash Equivalents 63,396,466 $ 29,607,253 $ 13,525,677 $ 106,529,396 $ 19,717,787 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Financial Statements.
(36)

Governmental
Business-Type Activities - Enterprise Funds Activities
Electric Water Waste Water Internal
Utility Utility Utility T otal Service Funds

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

OPERATING ACTIVITIES
Operating Income (Loss) 27,550,403 $ 1,432,520 $ (1,673,745) $ 27,309,178 $ 6,118,565 $ Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided by
Operating Activities:

Depreciation and Amortization Expense 3,019,933 1,251,886 1,492,970 5,764,789 232,794 Lease Revenue 430,577 - - 430,577 - Changes in Assets, Deferred Outflows of Resources,
Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease In:

Accounts Receivable 1,837,704 (3,837) 352,644 2,186,511 72,739 Prepaid Items (330,000) 2,720 380 (326,900) (300) Deposits Receivable (1,087,742) - - (1,087,742) - Inventories (177,472) (7,659) - (185,131) - Deferred Amounts from OPEB 217,822 (17,047) 183,820 384,595 Deferred Amounts from Pension 580,135 220,168 122,728 923,031 - Increase (Decrease) In:

Accounts Payable 2,535,910 (611,172) 386,942 2,311,680 (112,135) Deposits Payable 202,680 14,635 - 217,315 - Claims and Judgments - - - - (1,227,690) Compensated Absences 48,230 31,780 11,797 91,807 10,797 Total OPEB Liability 207,132 428,456 (305,537) 330,051 - Net Pension Liability (70,870) 94,570 252,183 275,883 - Deferred Amounts from OPEB (191,986) (9,773) (135,229) (336,988) - Deferred Amounts from Pension (320,691) (137,581) (102,761) (561,033) - Net Cash Provided by
Operating Activities 34,451,765 $ 2,689,666 $ 586,192 $ 37,727,623 $ 5,094,770 $

NONCASH INVESTING, CAPITAL, AND

FINANCING ACTIVITIES
Loss on Disposal of Capital Assets (136,723)$ - $ - $ (136,723)$ - $ Assets Acquired Through Leases - $ 287,359$ - $ 287,359$ - $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2024

See accompanying Notes to Financial Statements.
(37)

Private-Purpose
Trust Custodial
Funds Funds
ASSETS
Cash and Investments 2,951,531 $ 578,536 $
Receivables:

Taxes - 6,584
Accrued Interest 38,897 8,019
Restricted Assets:

Cash and Investments 342,661 -
Total Assets 3,333,089 593,139

LIABILITIES
Accounts Payable - 20,039
Accrued Interest 129,849 -
Deposits Payable 230,799 -
Due to Other Governments - 37,763 Long-Term Liabilities:

Due in One Year 1,120,000 -
Due in More than One Year 6,767,136 -
Total Liabilities 8,247,784 57,802

NET POSITION
Held for Other Individuals and Organizations (4,914,695) 535,337 Total Net Position (4,914,695) $ 535,337 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Financial Statements.
(38)

Private-Purpose
Trust Custodial
Funds Funds

ADDITIONS
Contributions 32,835 $ - $
Taxes 1,437,065 543,085
Interest and Change in Fair Value of Investments 153,068 28,886 Total Additions 1,622,968 571,971

DEDUCTIONS
Administrative Expenses 5,450 157,604
Professional Services - 210,164 Utilities - 94,824
Principal Payment - 29,991
Interest Expense 229,083 1,941
Total Deductions 234,533 494,524
CHANGE IN NET POSITION 1,388,435 77,447
Net Position - Beginning of Year (6,303,130) 457,890 NET POSITION - END OF YEAR (4,914,695)$ 535,337 $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

(39)

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

A. Description of the Reporting Entity
The City is located in the County of San Bernardino and was incorporated on July 20, 1887, under the general laws of the state of California. The City operates under an elected Council/City Manager form of government. The City’s major operations 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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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

(40)

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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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

(41)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business type activities, which are presented as internal balances and are eliminated in the total primary government column. In the statement of activities, interfund services have been eliminated; however, those transactions between governmental and business type activities have not been eliminated.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by 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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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

(42)

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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NOTES TO FINANCIAL STATEMENTS
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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.
 Capital Improvements Fund is used to account for the General City capital projects. The funding for these projects is primarily from Measure I, Gas Tax and the General Fund.

The City reports the following major proprietary funds:

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

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NOTES TO FINANCIAL STATEMENTS
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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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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. New Accounting Pronouncements
GASB 100
In June 2022, the GASB issued GASB Statement No. 100, Accounting Changes and Error Corrections . This standard enhances accounting and financial reporting requirements for accounting changes and error corrections. Included in the category of accounting changes is changes to or within the financial reporting entity, which results from a change in the fund’s presentation as major or nonmajor. The City adopted the requirements of the guidance effective July 1, 2023 and has applied the provisions of this standard to the beginning of the period of adoption. The implementation of this standard resulted in the City showing a restatement for a change to or within the financial reporting entity due to the change in presentation of the Capital Improvements Capital Projects Fund from nonmajor to major as disclosed in Note 15.

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).

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.

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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
Tangible capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the government-wide and proprietary fund financ ial statements. The government defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such tangible 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. Lease and SBITA assets follow the same capitalization thresholds as capital assets.

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.

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.

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Capital Assets (Continued)
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 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) until that time.

The category of deferred outflow of resources reported in the government-wide statement of net position and the proprietary funds financial statements and is related to a loss on refunding, pension, and other postemployment benefits. A deferred loss on refunding results from the difference in the carrying value of the 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 on pension and other postemployment benefits are more fully discussed in Notes 9 and 10, respectively.

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’s deferred inflows of resources reported on the government-wide statement of net position and the proprietary funds financial statements relate to pension and other postemployment benefits, which are more fully discussed in Notes 9 and 10, respectively.

The City’s deferred inflows of resources reported on the statement of net position and governmental funds balance sheet also include balances related to leases for amounts not yet received. Deferred inflows from lease receivable are initially measured at the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Deferred inflows from unavailable revenues, which arises 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.

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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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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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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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 $28,107,984 as of June 30, 2024.

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 $12,515,145 as of June 30, 2024.

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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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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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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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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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.

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

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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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, 2024:

Deficit
Amount
Other Governmental Special Revenue Funds:

Community Development Block Grant 79,478 $
Miscellaneous Grants 604,696
Private-Purpose Trust Fund:

Successor Agency of the Former RDA 6,122,085

The other governmental special revenue funds deficits will be eliminated as grant reimbursements become available or transfers are made. The private-purpose trust fund deficit will be eliminated through the receipt of future RPPTTF to pay off long-term debt.

Excess of Expenditures Over Appropriations
Expenditures exceeded budgeted appropriations in the following fund:

Fund Variance with
Budget Actual Final Budget
Other Governmental Funds:

Housing Authority Special Revenue Fund - $ 75,773$ (75,773) $

NOTE 3 CASH AND INVESTMENTS
Cash and Investments
Cash and investments held by the City at June 30, 2024, are reported in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 215,219,803 $
Restricted:

Cash and Investments 106,092
Cash with Fiscal Agent 14,258,321
Statement of Net Position - Fiduciary Funds:

Cash and Investments 3,530,067
Restricted:

Cash and Investments 342,661
Total Cash and Investments 233,456,944 $

Petty Cash 6,217 $
Deposits with Financial Institutions 12,692,979
Restricted Deposits with Financial Institutions 381,940 Investments 220,375,808
Total Cash and Investments 233,456,944 $

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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

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

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

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

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

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CITY OF COLTON, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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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, 2024, 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 147,619,136 $ - $ - $ 147,619,136$ United States Government Sponsored
Agency Securities:

FHLB 1,942,250 15,279,155 18,286,827 35,508,232 FFCB 981,750 - - 981,750 Freddie Mac 3,046,166 - - 3,046,166 Fannie Mae - - 4,988,200 4,988,200 Money Market Mutual Funds 13,973,721 - - 13,973,721 Held by Fiscal Agent:

Money Market Mutual Funds 14,258,603 - - 14,258,603 Total 181,821,626 $ 15,279,155 $ 23,275,027 $ 220,375,808 $

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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 2024 Rating AAA AA+ Rated
LAIF 147,619,136 $ N/A - $ - $ 147,619,136$ United States Government Sponsored
Agency Securities:

FHLB 35,508,232 N/A - 35,508,232 - FFCB 981,750 N/A - 981,750 - Freddie Mac 3,046,166 N/A - 3,046,166 - Fannie Mae 4,988,200 N/A - 4,988,200 - Money Market Mutual Funds 13,973,721 A - 13,973,721 Held by Fiscal Agent:

Money Market Mutual Funds 14,258,603 A 14,258,603 - - Total 220,375,808 $ 14,258,603 $ 44,524,348 $ 161,592,857 $

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 35,508,232 $

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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NOTES TO FINANCIAL STATEMENTS
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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, 2024, 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, 2024:

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

FHLB - $ 35,508,232$ - $ 35,508,232$ FFCB - 981,750 - 981,750 Freddie Mac - 3,046,166 - 3,046,166 Fannie Mae - 4,988,200 - 4,988,200 Total Leveled Investments - $ 44,524,348$ - $ 44,524,348 LAIF* 147,619,136
Money Market Mutual Funds* 28,232,324
Total Investment Portfolio 220,375,808$
* 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 $13,690 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 $42,126.

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, 2024, 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 $3,631,373 at June 30, 2024.

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

On July 1, 2021, the City entered into a 306 month lease as lessor for the use of Lamar Billboard Signs. An initial lease receivable was recorded in the General Fund in the amount of $4,442,796. As of June 30, 2024, the value of the lease receivable is $4,247,003. The lessee is required to make monthly fixed payments of $15,802 and no variable payments.

The lease has an interest rate of 1.81%. The value of the deferred inflow of resources as of June 30, 2024 was $3,920,114, and City recognized lease revenue and interest revenue of $174,227 and $77,987, respectively, during the fiscal year.

On June 20, 2023, the City entered into a two identical 151 month leases as lessor for the use of Drews and Century Substations. Initial lease receivables were recorded in the Electric Utility Enterprise Fund in the amount of $7,834,517 for both leases. As of June 30, 2024, the value of the lease receivables is $7,380,062. The lessees are required to make monthly fixed payments, which change each year. The initial monthly payments totaled $60,038 for both leases. There are no variable payments. Each lease has an interest rate of

3.11%. The combined value of the deferred inflow of resources as of June 30, 2024 was $7,190,180, and City recognized lease revenue and interest revenue of $625,233 and $235,770, respectively, for both leases, during the fiscal year. The lessees have one extension option for 120 months. The lessees have a termination period of one month as of the lease commencements.

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NOTE 6 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024, was as follows:

Governmental Activities
Balance at Balance at
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital Assets, Not Being Depreciated:

Land 15,306,911 $ - $ - $ - $ 15,306,911$ Construction in Progress 14,499,777 6,028,327 (55,890) (7,903,508) 12,568,706 Total Capital Assets, Not
Being Depreciated 29,806,688 6,028,327 (55,890) (7,903,508) 27,875,617 Capital Assets, Being Depreciated and
Amortized:

Structures and Improvements 28,434,377 343,446 - 6,470,706 35,248,529 Furniture and Equipment 18,400,146 2,116,773 (620,965) 126,387 20,022,341 Infrastructure 129,212,291 - - 1,306,415 130,518,706 Intangible Right to Use Lease Assets -
Building - 38,031 - - 38,031 Subscription Assets 142,947 - - - 142,947 Total Capital Assets,
Being Depreciated and Amortized 176,189,761 2,498,250 (620,965) 7,903,508 185,970,554 Less Accumulated Depreciation for:

Structures and Improvements (13,579,067) (892,416) - - (14,471,483) Furniture and Equipment (14,391,702) (960,088) 613,377 - (14,738,413) Infrastructure (91,840,518) (2,073,279) - - (93,913,797) Less Accumulated Amortization for:

Intangible Right to Use Lease Assets -
Building - (15,846) - - (15,846) Subscription Asset (37,825) (45,663) - - (83,488) Total Accumulated Depreciation
and Amortization (119,849,112) (3,987,292) 613,377 - (123,223,027) Total Capital Assets, Being
Depreciated and Amortized, Net 56,340,649
(1,489,042) (7,588) 7,903,508 62,747,527 Total Governmental Activities
Capital and Lease Assets, Net 86,147,337$ 4,539,285 $ (63,478) $ - $ 90,623,144$

Depreciation and amortization expense was charged in the following functions in the statement of activities for the year ended June 30, 2024, as follows:

General Government 218,540 $
Public Safety 588,867
Community Services 235,547
Public Works 2,944,338
Total 3,987,292 $

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NOTE 6 CAPITAL AND LEASE ASSETS (CONTINUED)
Business-Type Activities
Capital asset activity for the year ended June 30, 2024, was as follows:

Balance at Balance at
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital Assets, Not Being Depreciated:

Land 6,269,991 $ - $ - $ - $ 6,269,991$ Construction in Progress 9,377,995 996,392 - (5,824,015) 4,550,372 Total Capital Assets, Not
Being Depreciated 15,647,986 996,392 - (5,824,015) 10,820,363 Capital Assets, Being Depreciated and
Amortized:

Intangible Assets 400,000 - - - 400,000 Structures and Improvements 44,975,455 319,130 - - 45,294,585 Furniture and Equipment 47,593,910 1,714,780 (458,125) 2,638,700 51,489,265 Capacity Rights 7,300,000 - - - 7,300,000 Infrastructure 130,079,381 1,465,700 (21,952) 3,185,315 134,708,444 Intangible Right to Use Lease Assets -
Equipment 83,272 287,359 - - 370,631 Subscription Asset 161,234 - - - 161,234 Total Capital Assets,
Being Depreciated and Amortized 230,593,252 3,786,969 (480,077) 5,824,015 239,724,159 Less Accumulated Depreciation for:

Intangible Assets (72,000) (8,000) - - (80,000) Structures and Improvements (31,402,773) (950,876) - - (32,353,649) Furniture and Equipment (32,245,803) (1,518,368) 327,791 - (33,436,380) Capacity Rights (4,247,266) (132,727) - - (4,379,993) Infrastructure (64,291,933) (3,080,281) 15,563 - (67,356,651)
Less Accumulated Amortization for:

Intangible Right to Use Lease Assets -
Equipment (5,397) (20,791) - - (26,188) Subscription Asset (53,744) (53,746) - - (107,490) Total Accumulated Depreciation
and Amortization (132,318,916) (5,764,789) 343,354 - (137,740,351) Total Capital Assets, Being
Depreciated and Amortized, Net 98,274,336 (1,977,820) (136,723) 5,824,015 101,983,808 Total Business-Type Activities
Capital and Lease Assets, Net 113,922,322$ (981,428) $ (136,723) $ - $ 112,804,171$

Depreciation and amortization expense was charged in the following functions in the statement of activities for the year ended June 30, 2024, as follows:

Electric Utility 3,019,933 $
Water Utility 1,251,886
Waste Water Utility 1,492,970
Total 5,764,789 $

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NOTE 7 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS
Interfund receivable and payable balances at June 30, 2024, are as follows:

Due To/From Other Funds
Receivable Payable Amount
General Fund Other Governmental Funds 53,610 $
Other Governmental Funds Other Governmental Funds 7,683 Total 61,293$

The interfund balances were made to cover negative cash balances and other temporary loans at June 30, 2024.

Transfers
Transfers In Transfers Out Amount
General Fund Other Governmental Funds 83,668 $
Electric Utility Enterprise Fund 10,500,000
Capital Improvement Capital
Projects Fund General Fund 34,630
Other Governmental Funds 175,519
Other Governmental Funds General Fund 2,500,770
Other Governmental Funds 87,196
Electric Utility Enterprise Fund 332,137
Water Utility Enterprise Fund 133,241
Waste Water Utility Enterprise
Fund 103,704
Internal Service Funds 71,845
Total 14,022,710$

Transfers to the General Fund from the Electric Utility Enterprise Fund for $10,500,000 were for general services in accordance with Measure D.

Other Governmental Funds transfers to the General Fund for $83,668 were for operating costs incurred during the year for after school programs, homeless services, emergency meal delivery and food distribution programs and COVID-CV3 projects.

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 the Capital Improvement Capital Projects Fund from the General Fund for $34,630 was for the La Cadena Dr Sidewalk Improvement Project. Transfers to th e Capital Improvement Capital Projects Fund from Other Governmental Funds was for the following capital projects: $59,836 Bridge No. 54C-0100 Mt Vernon at SAR, $50,720 La Cadena Drive bridge replacement, $56,692 Mt Vernon Bridge widening, $4,797 Barton Bridge replacement, and $3,474 Reche Canyon realign to Hunts Lane.

Transfers to Other Governmental Funds from the Other Governmental Funds for $87,196 of Taxable Pension Funding Bonds, Series 2007 debt service payments.

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NOTE 7 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS (CONTINUED) Transfers (Continued)
Transfers to Other Governmental Funds from the General Fund was for the following:
$898,345 for Lease Revenue Bonds, 2007 Series B current year debt service payments and $1,602,425 Taxable Pension Funding Bonds, Series 2007 debt service payments.

Transfers to Other Governmental Funds from Electric Utility Enterprise Fund ($332,137), Water Utility Enterprise Fund ($133,241), Waste Water Utility Enterprise Fund ($103,704), and Internal Service Funds ($71,845) were for Taxable Pension Funding Bonds, Series 2007 debt service payments.

NOTE 8 LONG-TERM LIABILITIES
Governmental Activities
Changes in long-term liabilities for the governmental activities for the year ended June 30, 2024, are as follows:

Due Due in
Balance Balance Within More Than
July 1, 2023 Additions Deletions June 30, 2024 One Year One Year City:

Other Debt:

Taxable Pension Funding
Bonds, Series 2007 19,481,182 $ 427,308 $ (1,500,000) $ 18,408,490 $ 1,660,000 $ 16,748,490 $ Direct Borrowings:

Loan Obligations 137,188 - (137,188) - - - Other-Long Term Liabilities:

Compensated Absences 2,639,527 2,955,791 (2,540,795) 3,054,523 2,090,518 964,005 Claims and Judgments
(Note 12) 7,457,763 767,964 (1,995,654) 6,230,073 2,055,920 4,174,153 County Memorandum
of Understanding 1,829,298 - - 1,829,298 - 1,829,298 Subscription Liability 123,762 - (71,933) 51,829 16,695 35,134 Lease Liability - 38,031 (15,614) 22,417 19,164 3,253 Public Financing Authority:

Other Debt:

Lease Revenue Bonds,
2007 Series B 7,160,000 - (580,000) 6,580,000 605,000 5,975,000 Net Unamortized Premiums
and Discounts (57,144) - 1,735 (55,409) - (55,409) Total Long-Term Liabilities
Governmental Activities 38,771,576 $ 4,189,094 $ (6,839,449) $ 36,121,221 $ 6,447,297 $ 29,673,924 $

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, 2024, the balance includes $11,050,000 principal and $7,358,490 accreted interest. The bonds have no reserve requirement.

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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, 2024, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 90,000 380,952 470,952
2030-2034 545,000 1,815,220 2,360,220 2035-2038 5,845,000 834,868 6,679,868 Total 11,050,000 4,937,280 $ 15,987,280 $
Plus: Accreted Interest 7,358,490
Total Taxable Pension
Funding Bonds, Series 2007 18,408,490$

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 $3,054,523 at June 30, 2024, 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 $6,230,073 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, 2024, 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 was made in fiscal year 2023-2024 and the loan has been fully repaid.

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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, 2024, this reserve requirement was met.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2024, including interest, are as follows:

Year Ending June 30, Principal Interest Total
2025 605,000 $ 292,045 $ 897,045 $
2026 635,000 264,145 899,145
2027 665,000 234,895 899,895
2028 695,000 203,948 898,948
2029 725,000 171,288 896,288
2030-2033 3,255,000 317,894 3,572,894 Total 6,580,000 $ 1,484,215 $ 8,064,215 $

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, provide for renewal options, and include interest rates ranging from 2.194% to

3.445%.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30, Principal Interest Total
2025 16,695 $ 1,785 $ 18,480 $
2026 17,270 1,210 18,480
2027 17,864 615 18,479
Total 51,829 $ 3,610 $ 55,439 $

See Note 6 for capital asset and accumulated amortization amounts of $142,947 and $(83,488), respectively.

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Lease Liability
The City leases office space under a long-term, noncancelable lease agreement that expires in 2026 with an interest rate of 3.158%. Principal and interest requirements to maturity under lease agreements are as follows:

Year Ending June 30, Principal Interest Total
2025 19,164 $ 432 $ 19,596 $
2026 3,253 13 3,266
Total 22,417 $ 445 $ 22,862 $

See Note 6 for capital asset and accumulated amortization amounts of $38,031 and $(15,846), respectively.

Business-Type Activities
Changes in long term liabilities for the business type activities for the year ended June 30, 2024, are as follows:

Due Due in
Balance Balance Within More Than
July 1, 2023 Additions Deletions June 30, 2024 One Year One Year Revenue Bonds:

Colton Utility Authority
Water Revenue:

Bonds, Series 2017 15,730,000 $ - $ (410,000)$ 15,320,000 $ 420,000 $ 14,900,000 $ Unamortized Bond Premium 573,426 - (24,144) 549,282 - 549,282 Colton Utility Authority
Installment Sale Agreement 6,068,549 - (599,510) 5,469,039 616,961 4,852,078 Colton Public Financing
Authority Revenue
Refunding Bonds,
Series 2007A 5,070,000 - (265,000) 4,805,000 280,000 4,525,000 Colton Public Financing
Authority Electric Revenue
Refunding Bonds,
Series 2012A 11,980,000 - (2,165,000) 9,815,000 2,280,000 7,535,000 Unamortized Bond Premium 1,231,925 - (273,679) 958,246 - 958,246 Total 40,653,900 $ - $ (3,737,333)$ 36,916,567 $ 3,596,961 $ 33,319,606 $

Notes Payable:

Direct Borrowings and Placements:

Note Payable 726,743 $ - $ (358,886)$ 367,857 $ 367,857 $ - $ Other Long-Term Liabilities:

Compensated Absences 715,895 1,111,971 (1,020,164) 807,702 753,589 54,113 Subscription Liability 106,235 - (52,500) 53,735 53,735 - Lease Liability 78,423 287,358 (14,655) 351,126 63,233 287,893 Total Long-Term Liabilities
Business-Type Activities 42,281,196$ 1,399,329 $ (5,183,538) $ 38,496,987 $ 4,835,375 $ 33,661,612 $

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
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, 2024, 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, 2024, total amounts collected exceeded the minimum requirement.

The annual requirements to amortize the indebtedness as of June 30, 2024, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 500,000 503,019 1,003,019
2030-2034 2,865,000 2,149,200 5,014,200 2035-2039 3,385,000 1,630,694 5,015,694 2040-2044 4,000,000 1,019,119 5,019,119 2045-2047 2,785,000 225,800 3,010,800 Total 15,320,000 $ 7,759,258 $ 23,079,258 $

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.

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Colton Utility Authority Installment Sale Agreement (Continued) The annual requirements to amortize the indebtedness as of June 30, 2024, including interest are as follows:

Year Ending June 30, Principal Interest Total
2025 616,961 $ 153,595 $ 770,556 $
2026 634,921 135,635 770,556
2027 653,404 117,152 770,556
2028 672,425 98,131 770,556
2029 692,000 78,557 770,557
2030-2032 2,199,328 112,442 2,311,770 Total 5,469,039 $ 695,512 $ 6,164,551 $

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, 2024, 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, 2024, total amounts collected exceeded the minimum requirement.

Pledged Revenues
The City has pledged future electric utility revenues to repay revenue bonds. At June 30, 2024, $6,538,293 (including interest) remains outstanding to be repaid by future electric revenues, if such revenues prove insufficient. For the fiscal year ended June 30, 2024, the net revenue available for service of all debt was $30,570,337. The debt principal and interest paid in fiscal year 2023- 2024 equals $502,108 (1.64% of available pledged net revenues).

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Colton Public Financing Authority Revenue Refunding Bonds, 2007 Series A (Continued)
Pledged Revenues (Continued)
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2024, including interest are as follows:

Year Ending June 30, Principal Interest Total
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 330,000 171,003 501,003
2030-2034 1,910,000 606,420 2,516,420 2035-2037 1,375,000 132,763 1,507,763 Total 4,805,000 $ 1,733,293 $ 6,538,293 $

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. On June 30, 2024, this reserve requirement was met. 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, 2024, total amounts collected exceeded the minimum requirement.

Pledged Revenues
The City has pledged future electric utility revenues to repay revenue bonds. At June 30, 2024, $11,071,500 (includes interest) remains outstanding to be repaid by future electric revenues, if such revenues prove insufficient. For the fiscal year ended June 30, 2024, the net revenue available for service of all debt was $30,570,337. The debt principal and interest paid in fiscal year 2023- 2024 equals $2,764,000 (9.04% of available pledged net revenues).

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Colton Public Financing Authority Electric Revenue Refunding Bonds, Series 2012A (Continued)
Pledged Revenues (Continued)
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2024, including interest, are as follows:

Year Ending June 30, Principal Interest Total
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 9,815,000 $ 1,256,500 $ 11,071,500 $

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, 2024, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
2025 367,857 $ 9,196 $ 377,053 $

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1.K. This liability, amounting to $807,702 at June 30, 2024, will be paid in future years from the respective enterprise funds.

Subscription Liability
The City has entered into subscription based-information technology arrangements (SBITAs) for various software. The SBITA arrangements expire at various dates through 2025, provide for renewal options, and have an interest rate of 2.354%.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30, Principal Interest Total
2025 53,735 $ 1,265 $ 55,000 $

See Note 6 for capital asset and accumulated amortization amounts of $161,234 and $(107,490), respectively.

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JUNE 30, 2024

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
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 with interest rates ranging from 2.766% to 3.667%. Principal and interest requirements to maturity under lease agreements are as follows:

Year Ending June 30, Principal Interest Total
2025 63,233 $ 9,514 $ 72,747 $
2026 65,082 7,664 72,746
2027 66,986 5,761 72,747
2028 68,946 3,800 72,746
2029 61,842 1,791 63,633
2030-2032 25,037 1,164 26,201 Total 351,126 $ 29,694 $ 380,820 $

See Note 6 for capital asset and accumulated amortization amounts of $370,631 and $(26,188), respectively.

NOTE 9 PENSION PLANS
The following is a summary of pension related items for the year ended June 30, 2024:

Deferred Deferred Pension
Pension Outflows Inflows Expense
Liability of Resources of Resources (Credit)
Miscellaneous 53,191,970 $ 13,042,018 $ (465,705) $ 8,120,385 $ Safety 77,587,111 29,133,327 (1,674,716) 10,651,679 Total 130,779,081 $ 42,175,345 $ (2,140,421) $ 18,772,064 $

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.

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NOTE 9 PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) 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.

The Plans’ provisions and benefits in effect at year ended June 30, 2024, are summarized as follows:

Prior to On or After On or After
Hire Date June 1, 2012 June 1, 2012 January 1, 2013
Benefit Formula 2.7%@55 2.5%@55 2%@62
Benefit Vesting Schedule 5 Years of Servic e 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 - 67 50 - 67 52 - 67
Monthly Benefits, as a % of Eligible Compensat
i 1.426% to 2.418% 1.426% to 2.418% 1.0% to 2.5%
Required Employee Contribution Rates 8% 8% 6.25%
Required Employer Contribution Rates:

Normal Cost Rate 11.640% 11.640% 6.250%
Payment of Unfunded Liability - $ 3,633,043$ - $ Miscellaneous

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 Monthly for Life Monthly for Life Retirement Age 50 50 - 55 50 - 57
Monthly Benefits, as a % of Eligible
Compensation 3.0% 2.4% to 3.0% 2% to 2.7%
Required Employee Contribution Rates 9.000% 9.000% 13.750% Required Employer Contribution Rates:

Normal Cost Rate 29.090% 26.110% 14.500%
Payment of Unfunded Liability 2,742,671 $ - $ 14,442$

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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024

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NOTE 9 PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
Safety - Fire
Tier I Tier II Tier III - PEPRA
Prior to On or After On or After
Hire Date October 15, 2011 Oc tober 15, 2011 January 1, 2013 Benefit Formula 3%@50 3%@55 2.7%@57
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 50 - 55 50 - 57
Monthly Benefits, as a % of Eligible
Compensation 3.0% 2.0% to 2.7% 2% to 2.7%
Required Employee Contribution Rates 9.000% 9.000% 13.750% Required Employer Contribution Rates:

Normal Cost Rate 29.090% 26.110% 14.500%
Payment of Unfunded Liability 2,442,181 $ - $ - $

Employees Covered
At the measurement date ended June 30, 2023, 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, 2024, included $5,672,159 for the City’s Miscellaneous Plan and $7,693,495 for the City’s Safety Plan resulting in a total amount paid of $13,365,654. The pension liability for governmental activities is primarily liquidated from the general fund.

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JUNE 30, 2024

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NOTE 9 PENSION PLANS (CONTINUED)
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, 2023, using an annual actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions
The total pension liabilities in the June 30, 2022, actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date: June 30, 2022 June 30, 2022
Measurement Date: June 30, 2023 June 30, 2023
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 lesser 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. Using historical returns all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

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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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JUNE 30, 2024

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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, 2023, are as follows:

Increase (Decrease)
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2022
(Measurement Date) 174,465,390 $ 123,197,611 $ 51,267,779 $ Changes in the Year:

Service Cost 2,735,451 - 2,735,451 Interest on the Total Pension
Liability 11,912,275 - 11,912,275 Changes of Benefit Terms 267,972 - 267,972 Differences Between Expected
and Actual Experience 1,083,653 - 1,083,653 Contribution - Employer - 5,446,713 (5,446,713) Contribution - Employee - 1,109,511 (1,109,511) Net Investment Income - 7,609,530 (7,609,530) Administrative Expenses - (90,594) 90,594 Benefit Payments, Including
Refunds of Employee
Contributions (9,086,145) (9,086,145) - Net Changes 6,913,206 4,989,015 1,924,191 Balance at June 30, 2023
(Measurement Date) 181,378,596 $ 128,186,626 $ 53,191,970 $

Proportionate Share of Net Pension Liability
As of measurement date June 30, 2023, 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 77,587,111 $

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JUNE 30, 2024

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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 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 cont ributions 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, 2022 and 2023, were as follows:

Safety
Proportion - June 30, 2022 1.06369%
Proportion - June 30, 2023 1.03796%
Change - Increase (Decrease) -0.02573%

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 77,179,015 $ 108,717,299 $
Current Discount Rate 6.90% 6.90%
Net Pension Liability 53,191,970 $ 77,587,111 $
1% Increase 7.90% 7.90%
Net Pension Liability 33,421,381 $ 52,135,967 $

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, 2024, the City recognized pension expense of $8,120,385 and $10,651,679 for the Miscellaneous and Safety Plans, respectively. At June 30, 2024, 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 5,672,159 $ - $ 7,693,495$ - $ Differences Between Expected
and Actual Experience 632,131 (465,705) 5,696,324 (487,666) Change in Assumptions 921,269 - 4,528,088 - Change in Employer's Proportion
and Differences Between the
Employer's Contributions and the
Employer's Proportionate Share
of Contributions - - 597,645 (1,187,050) Net Differences Between Projected
and Actual Earnings on Plan
Investments 5,816,459 - 10,617,775 - Total 13,042,018 $ (465,705) $ 29,133,327 $ (1,674,716) $

Amounts of $5,672,159 and $7,693,495 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, 2025. 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
2025 1,934,072 $ 6,219,838 $
2026 744,522 4,534,262
2027 4,067,903 8,714,655
2028 157,657 296,361
2029 - -
Thereafter - -

E. Payable to the Pension Plans
At June 30, 2024, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2024.

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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, 2023, 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 $45,800,968 was measured as of June 30, 2023, 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, 2023, 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, 2023
Actuarial Cost Method: Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 3.88%
Inflation 2.50%
Projected Salary Increase 3.00% per annum, in aggregate Healthcare Cost Trend Rates 12.6% for Pre-Medicare plans and 10.2% for Medicare plans for 2024, followed by 8.0% for
Pre-Medicare plans and 13.5% for Medicare
plans for 2025, then 5.6% for 2026 decreasing
to 3.9% for years 2075 and later.

Mortality CalPERS 2021 Experience Study
Mortality Improvement MW Scale 2022

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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 3.88% at measurement date June 30, 2023.

Change in Assumption
Discount rate was changed from 3.77% to 3.88%. Also, the medical trend was updated from

6.8% in 2024 decreasing to 3.9% by 2075 to the following: 12.6% for Pre-Medicare plans and 10.2% for Medicare plans for 2024, followed by 8.0% for Pre-Medicare plans and 13.5% for Medicare plans for 2025, then 5.6% for 2026 decreasing to 3.9% for years 2075 and later.

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

Total
OPEB
Liability
Balance at June 30, 2022
(Measurement Date) 43,098,767 $
Changes in the Year:

Service Cost 1,779,887
Interest on the Total OPEB Liability 1,658,133
Changes in Assumptions 1,117,447
Benefit Payments (1,853,266)
Net Changes 2,702,201
Balance at June 30, 2023
(Measurement Date) 45,800,968 $

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
(2.88%) (3.88%) (4.88%)
Total OPEB Liability 51,786,824 $ 45,800,968 $ 40,849,601 $

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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
(1) (2) (3)
Total OPEB Liability 41,025,029 $ 45,800,968 $ 51,934,065 $ (1) 11.6% for Pre-Medicare plans and 9.2% for Medicare plans for 2024, followed by 7.0% for Pre-Medicare plans and 12.5% for Medicare plans for 2025, then 4.6% for 2026 decreasing to 2.9% for years 2075 and later.
(2) 12.6% for Pre-Medicare plans and 10.2% for Medicare plans for 2024, followed by 8.0% for Pre-Medicare plans and 13.5% for Medicare plans for 2025, then 5.6% for 2026 decreasing to 3.9% for years 2075 and later.
(3) 13.6% for Pre-Medicare plans and 11.2% for Medicare plans for 2024, followed by 9.0% for Pre-Medicare plans and 14.5% for Medicare plans for 2025, then 6.6% for 2026 decreasing to 4.9% for years 2075 and later.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized OPEB expense of $4,723,898. At June 30, 2024, 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 1,938,737 $ - $
Differences Between Expected and Actual
Experience 2,499,078 -
Change in Assumptions 7,192,228 (7,079,636)
Total 11,630,043 $ (7,079,636) $

An amount of $1,938,737 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, 2025.

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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
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
2025 1,343,582 $
2026 1,343,582
2027 990,155
2028 105,904
2029 (494,277)
Thereafter (677,276)

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, 2024, the Electric Fund made payments totaling $7,771,892 for “take or pay” contracts. This amount includes over/under billings from previous fiscal year and contract provisions.

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NOTE 11 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
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 1160 Nicole Court, Glendora, CA 91740.

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, 2024, 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 210,150 $ 60,652 $ 4.31% 9,057 $ 2,614 $ Natural Gas Projects:

Natural Gas Pinedale Project 1,211 338 100.00% 1,211 338 Natural Gas Barnett Project 2,504 698 100.00% 2,504 698 Prepaid Natural Gas:

Project No. 1 211,210 93,734 10.76% 22,719 10,083 Total Bonds Payable 35,491$ 13,733 $

The City’s interests in various SCPPA projects are described as follows:

Nuclear Generation Project
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.

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NOTE 11 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Southern California Public Power Authority (Continued)
Nuclear Generation Project (Continued)
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.

Coal Generation Project
San Juan Project – Effective July 1, 1993, SCPPA purchased a 41.80% interest in Unit 3 and related common facilities of the San Juan Generating Station from Century Power Corporation. Unit 3, a 497-MW unit, is one unit of a four-unit coal-fired power generating station in New Mexico. In an effort by the California participants in San Juan Unit 3, SCPPA and the other owners agreed to decommission Unit 3 no later than December 31, 2017.

To accommodate this goal, the participants accelerated the debt payment so that all debt was satisfied by January 1, 2017. Additionally, the coal supply contracts were renegotiated to remove the minimum coal purchase quantities beginning in fiscal year 2015-2016. Unit 3 ceased commercial operations on December 18, 2017. The City continues to have some small administrative costs associated with decommissioning activities.

Natural Gas Generation Project
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.

Large Hydro Generation 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.

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NOTE 11 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Southern California Public Power Authority (Continued)
Renewable Generation Projects
Astoria 2 Solar – In February 2013, City Council approved the Astoria 2 Project a 75 MW solar facility located in Ken County, California. The contract term is 20-years.

Astoria 2 Solar achieved commercial operation on December 9, 2016. The City’s share of the facility is 6.67% project entitlement share. The other Southern California Public Power Participants (SCPPA) include the Cities of Azusa, Banning, and Vernon.

Kingbird B Solar – The Kingbird B Solar Project is a 20 MW solar facility located in Kern County, California. The contract term is 20-years. Kingbird B Solar achieved commercial operation on October 22, 2013.The City has 15% project entitlement share.

The other SCPPA participants include the Cities of Riverside and Azusa.

Puente Hills Landfilled Gas – On January 1, 2017, the Puente Hills Gas-to-Energy Facility (Facility) which is owned by the County Sanitation District No. 2 of Los Angeles County Sanitation began delivering energy to SCPPA. The contract term is 14 years.

The City receives 23.2558% of 41.5 MW project entitlement share. The other SCPPA participants include the Cities of Azusa, Banning, Pasadena, and Vernon.

Casa Diablo Geothermal - On February 21, 2019, the SCPPA Board of Directors approved the Power Purchase Agreement and Power Sales Agreements for the City.

The Casa Diablo Geothermal is a 31 MW baseload renewable geothermal resource located in Mono County, California. The contract term is 25 years. Casa Diablo achieved commercial operation on July 14, 2022. The City receives 16 MW of the project entitlement share, and is the only SCPPA participant in the project.

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.

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NOTE 11 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
San Bernardino Valley International Airport Authority
In May 1992, the San Bernardino Valley International Airport Authority (SBVIAA) was created pursuant to a joint exercise of powers agreement, entered into between the City of Colton, the County of San Bernardino and the Cities of Loma Linda, San Bernardino and Highland. The SBVIAA was established for the purpose of acquiring, operating, repairing, maintaining and administrating the aviation portions of the former Norton Air Force Base, now known as the San Bernardino International Airport. The City has no equity interest in the SBVIAA and does not receive a share of operating results. A copy of SBVIAA’s audited financial statements can be obtained by written request at 294 S. Leland Norton Way, Suite #1, San Bernardino, CA 92408.

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

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.

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NOTE 12 CONCESSIONAIRE AGREEMENT (CONTINUED)
As compensation for the exclusive use of th e 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 2023-2024, the City made the annual payment of $318,349, which is included in the maintenance and operations expense in the Wastewater Utility Enterprise Fund.

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 serv ice funding, the self-insurance funds provide coverage for up to a maximum of $500,000 for all workers’ compensation claims and $500,000 for each general liability claim and fully insures the excess amounts up to $5M and $50M respectively. Other risks are insured through PERMA’s risk pool programs, and through the 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 $50M 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. There is excess coverage of $5M for amounts above the $500,000 self-insured retention (SIR).

Property: The City purchases all risk property insurance, subject to exclusions, covering City buildings, contents, and machines subject to a $10,000 deductible and a limit of $200M (per property limits) per occurrence depending upon the type of loss.

Auto Physical Damage: The City purchas es auto physical damage insurance on a replacement cost basis for all licensed vehicles and trailers subject to a $5,000 deductible with a scheduled limit amount per occurrence depending on the type of loss.

Employment Practices Liability: The City purchases employment practices liability insurance with a $500,000 self-insured retention (SIR) and coverage up to $50M through PERMA and excess insurance carriers.

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NOTE 13 COMMITMENTS AND CONTINGENCIES (CONTINUED)
Self-Insurance Payable (Continued)
Crime: The City purchases crime (bond type) insurance with a $10,000 deductible and up to $2M per occurrence for loss of money and securities caused by employees or others.

Cyber Liability: The City has a self-insured retention (SIR) of $50,000 and purchases insurance coverage up to $18M.

Earthquake: The City purchases earthquake insurance for up to $27,782,110 with a minimum deductible of 5% per facility.

Drone: Drone liability insurance is included in the City’s Liability program for coverage up to $50M. Additional insurance is purchased to insure physical damage.

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 $2,901,819 and $3,328,254 for the general liability claims and workers’ compensation claims, respectively, for a total of $6,230,071.

A reconciliation of changes in aggregate liabilities for claims for the last two fiscal years is as follows:

2024 2023
Beginning-Year Liability 7,457,763 $ 7,609,890 $
Current-Year Claims and Changes in Estimates 767,964 4,381,287 Claim Payments (1,995,654) (4,533,414)
Balance at Fiscal Year End 6,230,073 $ 7,457,763 $

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.

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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 1,870,258 $

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, 2024, is as follows:

Due Due in
Balance Balance Within More Than
June 30, 2023 Additions Deletions June 30, 2024 One Year One Year Tax Allocation Bonds:

Refunding Bonds,
Series 2015 7,860,000 $ - $ (1,060,000)$ 6,800,000 $ 1,120,000 $ 5,680,000 $ Unamortized Discounts 1,174,107 - (86,971) 1,087,136 - 1,087,136 Total 9,034,107 $ - $ (1,146,971)$ 7,887,136 $ 1,120,000 $ 6,767,136 $

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, 2024, the annual requirement to repay the remaining outstanding indebtedness is as follows:

Year Ending June 30, Principal Interest Total
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 225,000 83,481 308,481
2030-2034 1,235,000 291,638 1,526,638 2035-2037 850,000 51,800 901,800 Total 6,800,000 $ 1,214,721 $ 8,014,721 $

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NOTE 15 ACCOUNTING CHANGES AND ERROR IN CORRECTIONS
Changes to or within Financial Reporting Entity
Effective July 1, 2023, Capital Improvements Capital Projects Fund met the criteria to be reported as a major governmental fund. For the fiscal year ended June 30, 2023, this fund was reported as a nonmajor governmental fund. The effect of these changes within the financial reporting entity are shown in the table below:

Changes to or
June 30, 2023 Within the
As Previously Financial July 1, 2024
Governmental Funds: Reported Reporting Entity As Restated Major Funds:

General Fund 45,156,186 $ - $ 45,156,186$ ARPA Special Revenue Fund 60,744 - 60,744 Capital Improvements Capital
Projects Fund - 461,548 461,548 Other Governmental Funds 29,341,501 (461,548) 28,879,953 Total Governmental Funds 74,558,431$ - $ 74,558,431$

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REQUIRED SUPPLEMENTARY INFORMATION

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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, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 City's Proportion of the Net
Pension Liability 1.03796% 1.06369% 1.24853% 0.95962% 0.94376% City's Proportionate Share of the
Net Pension Liability 77,587,111 $ 73,092,173 $ 43,817,132 $ 63,933,056 $ 58,914,788 $ City's Covered Payroll 10,599,582 $ 9,989,252 $ 9,590,910 $ 8,620,874 $ 9,579,273 $ City's Proportionate Share of the Net
Pension Liability as a Percentage of
City's Covered Payroll 731.98% 731.71% 456.86% 741.61% 615.02% Plan's Fiduciary Net Position
as a Percentage of the Plan's
Total Pension Liability 65.81% 66.63% 79.04% 68.91% 75.26% 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:

Inflation was reduced from 2.75% to 2.50%.

From fiscal year June 30, 2019 to June 30, 2022:

There were no significant 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%.

From fiscal year June 30, 2023 to June 30, 2024:

There were no significant changes in assumptions.

Safety

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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
June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014

0.933270% 0.913560% 0.902780% 0.887770% 0.819020%
54,759,875$ 53,943,082 $ 47,315,229 $ 36,579,955 $ 30,721,081 $ 9,299,618$ 8,523,558 $ 7,954,010 $ 8,572,102 $ 7,813,817 $ 588.84% 632.87% 594.86% 426.73% 393.16%

75.26% 73.31% 74.06% 78.40% 80.99%
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:

Inflation was reduced from 2.75% to 2.50%.

From fiscal year June 30, 2019 to June 30, 2022:

There were no significant 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%.

From fiscal year June 30, 2023 to June 30, 2024:

There were no significant changes in assumptions.

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SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS

LAST TEN FISCAL YEARS

(94)

Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Contractually Required Contribution
(Actuarially Determined) 7,693,495 $ 7,345,741 $ 6,665,476 $ 5,958,971 $ 5,255,476 $ Contributions in Relation to
the Contractually Required
Contributions (7,693,495) (7,345,741) (6,665,476) (5,958,971) (5,255,476) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ City's Covered Payroll 11,871,821 $ 10,599,582 $ 9,989,252 $ 9,590,910 $ 8,620,874 $ Contributions as a Percentage
of Covered Payroll 64.80% 69.30% 66.73% 62.13% 60.96%
Notes to Schedule:

Valuation Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 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% 2.300% 2.500% 2.500% 2.625%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) 7.25% (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 resu lting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

Safet
y

2.a
Packet Pg. 182
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 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, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 4,437,898$ 3,908,198 $ 3,319,478 $ 3,081,204 $ 2,451,024 $ (4,437,898) (3,908,198) (3,319,478) (3,081,204) (2,451,024) -$ - $ - $ - $ - $ 9,579,273$ 9,299,618 $ 8,523,558 $ 7,954,010 $ 8,572,102 $

46.33% 42.03% 38.94% 38.74% 28.59%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry Age Entry Age Entry Age Entry Age Entry Age
(1) (1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value 15 Year
Smoothed
Market Method

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

7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)
(4) (4) (4) (4) (4)
(5) (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 resu lting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

2.a
Packet Pg. 183
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 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, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability:

Service Cost 2,735,451 $ 2,577,952 $ 2,386,656 $ 2,461,858 $ 2,493,798 $ Interest on Total Pension Liability 11,912,275 11,460,267 11,314,393 11,011,405 10,683,159 Differences Between Expected and
Actual Experience 1,083,653 (2,794,232) (843,481) (838,202) 2,325,332 Changes in Assumptions - 5,527,613 - - - Changes in Benefits 267,972 - - - - Benefit Payments, Including Refunds of
Employee Contributions (9,086,145) (8,749,364) (8,615,641) (8,093,554) (7,370,298) Net Change in Total Pension Liability 6,913,206 8,022,236 4,241,927 4,541,507 8,131,991 Total Pension Liability - Beginning of Year 174,465,390 166,443,154 162,201,227 157,659,720 149,527,729 Total Pension Liability - End of Year (a) 181,378,596 $ 174,465,390 $ 166,443,154 $ 162,201,227 $ 157,659,720 $ Plan Fiduciary Net Position:

Net Plan to Plan Resource Movement - $ 216 $ - $ - $ - $ Miscellaneous Expenses - - - - 249 Contributions - Employer 5,446,713 5,025,421 4,590,979 4,112,145 3,464,809 Contributions - Employee 1,109,511 1,029,715 992,202 1,020,294 1,090,119 Net Investment Income 7,609,530 (10,260,414) 25,531,661 5,522,127 6,981,787 Benefit Payments (9,086,145) (8,749,364) (8,615,641) (8,093,554) (7,370,298) Administrative Expense (90,594) (84,867) (113,731) (157,114) (76,613) Net Change in Plan Fiduciary Net Position 4,989,015 (13,039,293) 22,385,470 2,403,898 4,090,053 Plan Fiduciary Net Position - Beginning of Year 123,197,611 136,236,904 113,851,434 111,447,536 107,357,483 Plan Fiduciary Net Position - End of Year (b) 128,186,626 $ 123,197,611 $ 136,236,904 $ 113,851,434 $ 111,447,536 $ Net Pension Liability - Ending (a)-(b) 53,191,970 $ 51,267,779 $ 30,206,250 $ 48,349,793 $ 46,212,184 $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 70.67% 70.61% 81. 85% 70.19% 70.69% Covered Payroll 14,370,768 $ 13,808,165 $ 13,598,995 $ 12,886,815 $ 13,638,600 $ Net Pension Liability as Percentage of
Covered Payroll 370.14% 371.29% 222. 12% 375.19% 338.83% 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:

Inflation was reduced from 2.75% to 2.50%.

From fiscal year June 30, 2019 to June 30, 2022:

There were no significant 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%.

From fiscal year June 30, 2023 to June 30, 2024:

There were no significant changes in assumptions.

2.a
Packet Pg. 184
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 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 Liabilit
y
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 Yea
r
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 Yea
r
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, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 2,509,394$ 2,441,303 $ 2,173,034 $ 2,030,905 $ 1,819,120 $ 10,127,309 9,698,932 9,339,587 8,828,015 8,469,591 1,242,908 19,319 1,753,280 (144,763) - (759,649) 8,163,980 - (2,174,145) - - - - - - (6,989,911) (6,342,617) (6,190,901) (5,801,181) (5,408,188) 6,130,051 13,980,917 7,075,000 2,738,831 4,880,523 143,397,678 129,416,761 122,341,761 119,602,930 114,722,407 149,527,729$ 143,397,678 $ 129,416,761 $ 122,341,761 $ 119,602,930 $ (249)$ - $ - $ - $ - $ (302,584) - - - - 2,954,354 2,806,234 2,601,938 2,266,067 1,634,990 1,076,405 1,079,751 1,054,638 1,098,948 926,763 8,526,707 10,436,125 507,989 2,151,777 14,562,640 (6,989,911) (6,342,617) (6,190,901) (5,801,181) (5,408,188) (159,337) (139,393) (58,810) (131,597) - 5,105,385 7,840,100 (2,085,146) (415,986) 11,716,205 102,252,098 94,411,998 96,497,144 96,913,130 85,196,925 107,357,483$ 102,252,098 $ 94,411,998 $ 96,497,144 $ 96,913,130 $ 42,170,246$ 41,145,580 $ 35,004,763 $ 25,844,617 $ 22,689,800 $

71.80% 71.31% 72. 95% 78.88% 81.03%
13,726,400$ 14,021,318 $ 12,803,630 $ 13,135,088 $ 11,068,462 $ 307.22% 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:

Inflation was reduced from 2.75% to 2.50%.

From fiscal year June 30, 2019 to June 30, 2022:

There were no significant 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%.

From fiscal year June 30, 2023 to June 30, 2024:

There were no significant changes in assumptions.

2.a
Packet Pg. 185
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS

LAST TEN FISCAL YEARS

(98)

Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Contractually Required Contribution
(Contractually Required) 5,672,159 $ 5,446,713 $ 5,023,161 $ 4,593,240 $ 4,114,285 $ Contributions in Relation to
the Contractually Required
Contributions (5,672,159) (5,446,713) (5,023,161) (4,593,240) (4,114,285) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ Covered Payroll 17,530,213 $ 14,370,768 $ 13,808,165 $ 13,598,995 $ 12,886,815 $ Contributions as a Percentage
of Covered Payroll 32.36% 37.90% 36.38% 33.78% 31.93%
Notes to Schedule:

Valuation Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 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% 2.300% 2.500% 2.500% 2.625%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) 7.25% (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 resu lting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

Miscellaneous

2.a
Packet Pg. 186
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 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, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 3,452,712$ 2,941,634 $ 2,734,651 $ 2,504,134 $ 2,258,495 $ (3,452,712) (2,941,634) (2,734,651) (2,504,134) (2,258,495) -$ - $ - $ - $ - $ 13,638,600$ 13,726,400 $ 14,021,318 $ 12,803,630 $ 13,135,088 $

25.32% 21.43% 19.50% 19.56% 17.19%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry Age Entry Age Entry Age Entry Age Entry Age
(1) (1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value 15 Year
Smoothed
Market Method

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

7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)
(4) (4) (4) (4) (4)
(5) (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 resu lting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

2.a
Packet Pg. 187
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 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, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Measurement Date June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Total OPEB Liability:

Service Cost 1,779,887 $ 2,473,079 $ 2,328,012 $ 1,921,819 $ Interest on Total OPEB Liability 1,658,133 1,089,284 1,134,611 1,288,268 Differences Between Expected and Actual
Experience - - - - Changes in Assumptions 1,117,447 (9,520,890) 6,042,181 3,874,473 Changes in Benefit Terms - - (2,106,047) - Plan Experience - 403,187 41,105 - Benefit Payments, Including Refunds of
Member Contributions (1,853,266) (1,983,359) (1,949,639) (1,825,760) Net Change in Total OPEB Liability 2,702,201 (7,538,699) 5,490,223 5,258,800 Total OPEB Liability - Beginning of Year 43,098,767 50,637,466 45,147,243 39,888,443 Total OPEB Liability - Ending (a)-(b) 45,800,968 $ 43,098,767 $ 50,637,466 $ 45,147,243 $ Covered - Employee Payroll 24,970,350 $ 23,797,417 $ 23,189,905 $ 22,391,564 $ Total OPEB Liability as Percentage of
Covered - Employee Payroll 183.42% 181.11% 218.36% 201.63% 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:

Discount Rate 3.88% 3.77% 2.09% 2.44%
From June 30, 2023 to June 30, 2024, the medical trend was updated from 6.8% in 2024 decreasing to 3.9% by 2075 to the following: 12.6% for Pre-Medicare plans and 10.2% for Medicare plans for 2024, followed by 8.0% for Pre-Medicare plans and 13.5% for Medicare plans for 2025, then 5.6% for 2026 decreasing to 3.9% for years 2075 and later. * Fiscal year 2018 was the first year of implementation and therefore only seven years are shown.

2.a
Packet Pg. 188
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 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, 2020 June 30, 2019 June 30, 2018
June 30, 2019 June 30, 2018 June 30, 2017
1,233,655$ 1,197,722 $ 1,308,041 $
1,097,960 1,051,619 916,545
6,245,865 - -
1,968,572 (346,225) (1,977,837)
- - -
- - -
(1,588,495) (1,408,943) (1,322,951)
8,957,557 494,173 (1,076,202)
30,930,886 30,436,713 31,512,915
39,888,443$ 30,930,886 $ 30,436,713 $
23,216,582$ 23,026,018 $ 22,544,876 $
171.81% 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:

Discount Rate 3.15% 3.50% 3.40%

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

(103)

SUPPLEMENTARY INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

OTHER NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024

(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 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

OTHER NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024

(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.

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 2024 ACFR (4790 : FY2023-24 ACFR)

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2024

(108)

Special Revenue Funds
Community
Community Development State
Child Library Block Traffic Asset
Gas Tax Care Grant Grant Relief Seizure
ASSETS
Cash and Investments 317,094 $ 967,329 $ 5,818 $ - $ 1,769,286$ 382,554 $ Receivables:

Accounts 136 3,938 - 28,075 - - Taxes - - - - 242,061 - Accrued Interest 3,545 13,378 189 - 22,439 5,283 Due from Other Governments 270,759 106,790 - 29,954 - - Due from Other Funds - - 7,683 - - - Land Held for Resale - - - - - - Restricted Assets:

Cash and Investments - - - - - 66,813 Cash and Investments with
Fiscal Agents - - - - - - Total Assets 591,534 $ 1,091,435 $ 13,690 $ 58,029 $ 2,033,786 $ 454,650 $

LIABILITIES
Accounts Payable 36,448 $ 83,106 $ 4,314 $ 18,184 $ 59,250 $ - $ Unearned Revenues - 585,722 - - - - Due to Other Funds - - - 61,293 - - Total Liabilities 36,448 668,828 4,314 79,477 59,250 -

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues - - - 58,030 - - Total Deferred Inflows
of Resources - - - 58,030 - -

FUND BALANCES (DEFICITS)
Restricted:

Public Safety - - - - - 454,650 Capital Projects 555,086 - - - 1,974,536 - Debt Service - - - - - - Education - 422,607 9,376 - - - Affordable Housing - - - - - - Air Quality Projects - - - - - - Unassigned - - - (79,478) - - Total Fund Balances (Deficits) 555,086 422,607 9,376 (79,478) 1,974,536 454,650 Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances 591,534 $ 1,091,435 $ 13,690 $ 58,029 $ 2,033,786 $ 454,650 $

2.a
Packet Pg. 196
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2024

(109)

ASSETS
Cash and Investments
Receivables:

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

Cash and Investments
Cash and Investments with
Fiscal Agents
Total Assets

LIABILITIES
Accounts Payable
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues
Total Deferred Inflows
of Resources

FUND BALANCES (DEFICITS)
Restricted:

Public Safety
Capital Projects
Debt Service
Education
Affordable Housing
Air Quality Projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances
Special Revenue Funds
Host
Air Drug/Gang City Storm Local New
Quality Intervention Fees Wate r Transportation Facilities 744,139$ 15,563 $ 1,566,948 $ 694,098 $ 4,456,010 $ 534,308 $ - - - - 24,404 - - - - 7,449 - - 9,647 210 19,547 9,935 58,356 6,933 - - 60,372 - 360,779 - - - - - - - - - - - - - - - - - - - - - - - - - 753,786$ 15,773 $ 1,646,867 $ 711,482 $ 4,899,549 $ 541,241 $ -$ - $ 100,236$ 2,011 $ 57,943 $ - $ - - - - - - - - - - - - - - 100,236 2,011 57,943 - - - - - - - - - - - - - - 15,773 - - - - - - 1,546,631 709,471 4,841,606 541,241 - - - - - - - - - - - - - - - - - - 753,786 - - - - - - - - - - - 753,786 15,773 1,546,631 709,471 4,841,606 541,241 753,786$ 15,773 $ 1,646,867 $ 711,482 $ 4,899,549 $ 541,241 $

2.a
Packet Pg. 197
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2024

(110)

ASSETS
Cash and Investments
Receivables:

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

Cash and Investments
Cash and Investments with
Fiscal Agents
Total Assets

LIABILITIES
Accounts Payable
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues
Total Deferred Inflows
of Resources

FUND BALANCES (DEFICITS)
Restricted:

Public Safety
Capital Projects
Debt Service
Education
Affordable Housing
Air Quality Projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances
Civic Center Fire Fa cility Police Facility
Development Development Development Miscellaneous Housing Fee Fee Fee ViTep Grants Authority
148,512$ 370,601 $ 479,373 $ 350,382 $ 724,501 $ 880,726 $ - - - - 241,849 - - - - - - - 1,947 4,884 6,324 4,565 9,747 11,962 - - - - 1,297,258 - - - - - - - - - - - - 84,131 - - - - - - - - - - - - 150,459$ 375,485 $ 485,697 $ 354,947 $ 2,273,355 $ 976,819 $ -$ - $ - $ - $ 121,781$ - $ - - - - 1,755,209 - - - - - - - - - - - 1,876,990 - - - - - 1,001,061 - - - - - 1,001,061 - - - - 354,947 - - 150,459 375,485 485,697 - - - - - - - - - - - - - - - - - - - - 976,819 - - - - - - - - - - (604,696) - 150,459 375,485 485,697 354,947 (604,696) 976,819 150,459$ 375,485 $ 485,697 $ 354,947 $ 2,273,355 $ 976,819 $ Special Revenue Funds

2.a
Packet Pg. 198
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2024

(111)

ASSETS
Cash and Investments
Receivables:

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

Cash and Investments
Cash and Investments with
Fiscal Agents
Total Assets

LIABILITIES
Accounts Payable
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenues
Total Deferred Inflows
of Resources

FUND BALANCES (DEFICITS)
Restricted:

Public Safety
Capital Projects
Debt Service
Education
Affordable Housing
Air Quality Projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred
Inflow of Resources, and
Fund Balances
Debt Service Funds Capital Projects Funds
Taxable Total
Public Pension Other
Financing Funding Development Colton Governmental
Authority Bonds Fees Crossing Funds
132,574$ 140,842 $ 15,106,852 $ 795,658 $ 30,583,168 $ - - - - 298,402 - - - - 249,510 1,751 - 199,084 10,500 400,226 - - - - 2,125,912 - - - - 7,683 - - - - 84,131 - - - - 66,813 961,394 2,075,363 - - 3,036,757 1,095,719$ 2,216,205 $ 15,305,936 $ 806,158 $ 36,852,602 $ -$ - $ 41,516$ - $ 524,789$ - - - - 2,340,931 - - - - 61,293 - - 41,516 - 2,927,013 - - - - 1,059,091 - - - - 1,059,091 - - - - 825,370 - - 15,264,420 806,158 27,250,790 1,095,719 2,216,205 - - 3,311,924 - - - - 431,983 - - - - 976,819 - - - - 753,786 - - - - (684,174) 1,095,719 2,216,205 15,264,420 806,158 32,866,498 1,095,719$ 2,216,205 $ 15,305,936 $ 806,158 $ 36,852,602 $

2.a
Packet Pg. 199
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

(112)

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

REVENUES
Taxes - $ - $ - $ - $ - $ - $ Intergovernmental 1,487,781 1,895,572 50,281 517,663 1,491,615 - Charges for Services - 53,674 - - - - Investment Income 8,076 38,924 508 - 98,571 22,043 Fines and Forfeitures - - - - - 48,556 Miscellaneous 136 28,000 - - - - Total Revenues 1,495,993 2,016,170 50,789 517,663 1,590,186 70,599

EXPENDITURES
Current:

General Government - - - - - - Public Safety - - - - - - Community Services - 1,497,694 67,615 - - - Public Works 1,192,354 - - - - - Capital Outlay - 82,094 - 425,663 1,393,902 - Debt Service:

Principal Retirement - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 1,192,354 1,579,788 67,615 425,663 1,393,902 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 303,639 436,382 (16,826) 92,000 196,284 70,599

OTHER FINANCING SOURCES
(USES)
Transfers In - - 20,000 - - - Transfers Out (25,924) (24,894) - (101,964) - - Total Other Financing
Sources (Uses) (25,924) (24,894) 20,000 (101,964) - -

NET CHANGE IN FUND
BALANCES 277,715 411,488 3,174 (9,964) 196,284 70,599 Fund Balances (Deficits) - Beginning
of Year, as Previously Presented 277,371 11,119 6,202 (69,514) 1,778,252 384,051 Change Within the Financial Reporting
Entity (Nonmajor to Major Fund) - - - - - - Fund Balances (Deficits) - Beginning
of Year, as Restated 277,371 11,119 6,202 (69,514) 1,778,252 384,051

FUND BALANCES (DEFICITS) -
END OF YEAR 555,086$ 422,607 $ 9,376 $ (79,478) $ 1,974,536 $ 454,650 $

2.a
Packet Pg. 200
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

(113)

REVENUES
Taxes
Intergovernmental
Charges for Services
Investment Income
Fines and Forfeitures
Miscellaneous
Total Revenues

EXPENDITURES
Current:

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

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES

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

NET CHANGE IN FUND

BALANCES
Fund Balances (Deficits) - Beginning
of Year, as Previously Presented
Change Within the Financial Reporting
Entity (Nonmajor to Major Fund)
Fund Balances (Deficits) - Beginning
of Year, as Restated

FUND BALANCES (DEFICITS) -

END OF YEAR
Special Revenue Funds
Host
Air Drug/Gang City Storm Local New
Quality Intervention Fees Wate r Transportation Facilities -$ - $ - $ 633,579$ - $ - $ 53,616 - 400,584 - 1,433,066 - - - - - - 112,355 41,850 859 83,288 56,468 244,038 26,589 - - - - - - - - - - - - 95,466 859 483,872 690,047 1,677,104 138,944 - - - - - - - - - - - - - - -
- - -
- - - 933,056 - - 104,476 - 406,540 208,856 1,284,751 - - - - - - - - - - - - - 104,476 - 406,540 1,141,912 1,284,751 - (9,010) 859 77,332 (451,865) 392,353 138,944 - - - - - - - - - (16,381) (60,384) - - - - (16,381) (60,384) - (9,010) 859 77,332 (468,246) 331,969 138,944 762,796 14,914 1,469,299 1,177,717 4,509,637 402,297 - - - - - - 762,796 14,914 1,469,299 1,177,717 4,509,637 402,297 753,786$ 15,773 $ 1,546,631 $ 709,471 $ 4,841,606 $ 541,241 $

2.a
Packet Pg. 201
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

(114)

REVENUES
Taxes
Intergovernmental
Charges for Services
Investment Income
Fines and Forfeitures
Miscellaneous
Total Revenues

EXPENDITURES
Current:

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

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES

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

NET CHANGE IN FUND

BALANCES
Fund Balances (Deficits) - Beginning
of Year, as Previously Presented
Change Within the Financial Reporting
Entity (Nonmajor to Major Fund)
Fund Balances (Deficits) - Beginning
of Year, as Restated

FUND BALANCES (DEFICITS) -

END OF YEAR
Civic Center Fire Fa cility Police Facility
Development Development Development Miscellaneous Housing Fee Fee Fee ViTep Grants Authority
-$ - $ - $ - $ - $ - $ - - - - 1,932,692 - 10,542 15,739 20,497 47,866 - - 7,900 19,926 25,776 17,659 22,283 94,876 - - - - - - - - - - - - 18,442 35,665 46,273 65,525 1,954,975 94,876 - - - - 11,647 32,273 - - - - 566,671 - - - - - - - - - - - - - - - - - 612,786 - - - - - - - - - - - - 43,500 - - - - 1,191,104 75,773 18,442 35,665 46,273 65,525 763,871 19,103 - - - - - - - - - - (92,047) - - - - - (92,047) - 18,442 35,665 46,273 65,525 671,824 19,103 132,017 339,820 439,424 289,422 (1,276,520) 957,716 - - - - - - 132,017 339,820 439,424 289,422 (1,276,520) 957,716 150,459$ 375,485 $ 485,697 $ 354,947 $ (604,696) $ 976,819 $ Special Revenue Funds

2.a
Packet Pg. 202
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

(115)

REVENUES
Taxes
Intergovernmental
Charges for Services
Investment Income
Fines and Forfeitures
Miscellaneous
Total Revenues

EXPENDITURES
Current:

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

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES

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

NET CHANGE IN FUND

BALANCES
Fund Balances (Deficits) - Beginning
of Year, as Previously Presented
Change Within the Financial Reporting
Entity (Nonmajor to Major Fund)
Fund Balances (Deficits) - Beginning
of Year, as Restated

FUND BALANCES (DEFICITS) -

END OF YEAR
Debt Service Funds Capital Projects Funds
Taxable Capital Total
Public Pension Improvements Other
Financing Funding Development Colton Capital Projects Governmental Authority Bonds Fees Crossing Fund Funds
-$ - $ - $ - $ - $ 633,579$ - - - - - 9,262,870 - - 1,371,160 - - 1,631,833 52,006 100,000 814,389 45,250 - 1,821,279 - - - - - 48,556 - 3,612 118,804 - - 150,552 52,006 103,612 2,304,353 45,250 - 13,548,669

5,062 3,212 - - - 52,194 - - - - - 566,671 - - - - - 1,565,309 - - 80 - - 2,125,490 - - 470,417 5,080 - 4,994,565 580,000 1,500,000 - - - 2,080,000 318,345 698,560 - - - 1,060,405 903,407 2,201,772 470,497 5,080 - 12,444,634 (851,401) (2,098,160) 1,833,856 40,170 - 1,104,035 898,345 2,310,548 - - - 3,228,893 - - (24,789) - - (346,383) 898,345 2,310,548 (24,789) - - 2,882,510 46,944 212,388 1,809,067 40,170 - 3,986,545 1,048,775 2,003,817 13,455,353 765,988 461,548 29,341,501 - - - - (461,548) (461,548) 1,048,775 2,003,817 13,455,353 765,988 - 28,879,953 1,095,719$ 2,216,205 $ 15,264,420 $ 806,158 $ - $ 32,866,498$

2.a
Packet Pg. 203
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(116)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 277,371$ 277,371 $ 277,371 $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,536,893 1,536,893 1,487,781 (49,112) Investment Income - 2,400 8,076 5,676 Miscellaneous 7,000 7,000 136 (6,864) Amounts Available for
Appropriations 1,821,264 1,823,664 1,773,364 (50,300)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works 1,464,158 1,490,978 1,192,354 298,624 Transfers Out 25,924 25,924 25,924 - Total Charges to Appropriations 1,490,082 1,516,902 1,218,278 298,624

BUDGETARY FUND BALANCE - END
OF YEAR 331,182$ 306,762 $ 555,086 $ 248,324 $

2.a
Packet Pg. 204
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

COMMUNITY CHILD CARE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(117)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 11,119$ 11,119 $ 11,119 $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,763,681 2,177,145 1,895,572 (281,573) Charges for Services 12,500 27,500 53,674 26,174 Investment Income - 17,900 38,924 21,024 Miscellaneous - 36,600 28,000 (8,600) Amounts Available for
Appropriations 1,787,300 2,270,264 2,027,289 (242,975)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Community Services 1,448,229 1,912,282 1,497,694 414,588 Capital Outlay - 357,518 82,094 275,424 Transfers Out 24,894 24,894 24,894 - Total Charges to Appropriations 1,473,123 2,294,694 1,604,682 690,012

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR 314,177$ (24,430) $ 422,607 $ 447,037 $

2.a
Packet Pg. 205
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

LIBRARY GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(118)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 6,202$ 6,202 $ 6,202 $ - $

RESOURCES (INFLOWS)
Intergovernmental 25,000 54,897 50,281 (4,616) Investment Income - 330 508 178 Transfers In 20,000 20,000 20,000 - Amounts Available for
Appropriations 51,202 81,429 76,991 (4,438)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Community Services 45,000 75,453 67,615 7,838

BUDGETARY FUND BALANCE - END
OF YEAR 6,202$ 5,976 $ 9,376 $ 3,400 $

2.a
Packet Pg. 206
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(119)

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

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR (69,514)$ (69,514) $ (69,514) $ - $

RESOURCES (INFLOWS)
Intergovernmental 396,950 1,484,124 517,663 (966,461) Amounts Available for
Appropriations 327,436 1,414,610 448,149 (966,461)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 337,407 1,181,773 425,663 756,110 Transfers Out 59,543 274,750 101,964 172,786 Total Charges to Appropriations 396,950 1,456,523 527,627 928,896

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR (69,514)$ (41,913) $ (79,478) $ (37,565) $

2.a
Packet Pg. 207
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

STATE TRAFFIC RELIEF SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(120)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 1,778,252$ 1,778,252 $ 1,778,252 $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,330,493 1,330,493 1,491,615 161,122 Investment Income - 51,400 98,571 47,171 Amounts Available for
Appropriations 3,108,745 3,160,145 3,368,438 208,293

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 1,330,493 2,639,818 1,393,902 1,245,916

BUDGETARY FUND BALANCE - END
OF YEAR 1,778,252$ 520,327 $ 1,974,536 $ 1,454,209 $

2.a
Packet Pg. 208
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

ASSET SEIZURE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(121)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 384,051$ 384,051 $ 384,051 $ - $

RESOURCES (INFLOWS)
Investment Income - 10,500 22,043 11,543 Fines and Forfeitures - - 48,556 48,556 Amounts Available for
Appropriations 384,051 394,551 454,650 60,099

BUDGETARY FUND BALANCE - END
OF YEAR 384,051$ 394,551 $ 454,650 $ 60,099 $

2.a
Packet Pg. 209
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

AIR QUALITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(122)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 762,796$ 762,796 $ 762,796 $ - $

RESOURCES (INFLOWS)
Intergovernmental 50,000 50,000 53,616 3,616 Investment Income 5,000 20,700 41,850 21,150 Amounts Available for
Appropriations 817,796 833,496 858,262 24,766

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 52,417 313,111 104,476 208,635

BUDGETARY FUND BALANCE - END
OF YEAR 765,379$ 520,385 $ 753,786 $ 233,401 $

2.a
Packet Pg. 210
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

DRUG/GANG INTERVENTION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(123)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 14,914$ 14,914 $ 14,914 $ - $

RESOURCES (INFLOWS)
Investment Income - 400 859 459 Amounts Available for
Appropriations 14,914 15,314 15,773 459

BUDGETARY FUND BALANCE - END
OF YEAR 14,914$ 15,314 $ 15,773 $ 459 $

2.a
Packet Pg. 211
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

HOST CITY FEES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(124)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 1,469,299$ 1,469,299 $ 1,469,299 $ - $

RESOURCES (INFLOWS)
Intergovernmental 506,988 506,988 400,584 (106,404) Investment Income 2,000 64,269 83,288 19,019 Amounts Available for
Appropriations 1,978,287 2,040,556 1,953,171 (87,385)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay - 883,472 406,540 476,932

BUDGETARY FUND BALANCE - END
OF YEAR 1,978,287$ 1,157,084 $ 1,546,631 $ 389,547 $

2.a
Packet Pg. 212
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

STORM WATER SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(125)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 1,177,717$ 1,177,717 $ 1,177,717 $ - $

RESOURCES (INFLOWS)
Taxes 646,854 646,854 633,579 (13,275) Investment Income 500 33,800 56,468 22,668 Amounts Available for
Appropriations 1,825,071 1,858,371 1,867,764 9,393

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works 1,110,230 1,246,625 933,056 313,569 Capital Outlay 50,000 461,670 208,856 252,814 Transfers Out 16,381 16,381 16,381 - Total Charges to Appropriations 1,176,611 1,724,676 1,158,293 566,383

BUDGETARY FUND BALANCE - END
OF YEAR 648,460$ 133,695 $ 709,471 $ 575,776 $

2.a
Packet Pg. 213
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

LOCAL TRANSPORTATION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(126)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 4,509,637$ 4,509,637 $ 4,509,637 $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,399,017 2,000,781 1,433,066 (567,715) Investment Income 500 120,100 244,038 123,938 Amounts Available for
Appropriations 5,909,154 6,630,518 6,186,741 (443,777)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay 1,399,518 3,071,262 1,284,751 1,786,511 Transfers Out - 950,615 60,384 890,231 Total Charges to Appropriations 1,399,518 4,021,877 1,345,135 2,676,742

BUDGETARY FUND BALANCE - END
OF YEAR 4,509,636$ 2,608,641 $ 4,841,606 $ 2,232,965 $

2.a
Packet Pg. 214
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

NEW FACILITIES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(127)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 402,297$ 402,297 $ 402,297 $ - $

RESOURCES (INFLOWS)
Charges for Services 8,000 101,000 112,355 11,355 Investment Income 1,000 12,500 26,589 14,089 Amounts Available for
Appropriations 411,297 515,797 541,241 25,444

BUDGETARY FUND BALANCE - END
OF YEAR 411,297$ 515,797 $ 541,241 $ 25,444 $

2.a
Packet Pg. 215
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

CIVIC CENTER DEVELOPMENT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(128)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 132,017$ 132,017 $ 132,017 $ - $

RESOURCES (INFLOWS)
Charges for Services - 9,500 10,542 1,042 Investment Income - 3,700 7,900 4,200 Amounts Available for
Appropriations 132,017 145,217 150,459 5,242

BUDGETARY FUND BALANCE - END
OF YEAR 132,017$ 145,217 $ 150,459 $ 5,242 $

2.a
Packet Pg. 216
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

FIRE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(129)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 339,820$ 339,820 $ 339,820 $ - $

RESOURCES (INFLOWS)
Charges for Services - 16,000 15,739 (261) Investment Income - 9,500 19,926 10,426 Amounts Available for
Appropriations 339,820 365,320 375,485 10,165

BUDGETARY FUND BALANCE - END
OF YEAR 339,820$ 365,320 $ 375,485 $ 10,165 $

2.a
Packet Pg. 217
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

POLICE FACILITY DEVELOPMENT FEE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(130)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 439,424$ 439,424 $ 439,424 $ - $

RESOURCES (INFLOWS)
Charges for Services - 20,000 20,497 497 Investment Income - 12,300 25,776 13,476 Amounts Available for
Appropriations 439,424 471,724 485,697 13,973

BUDGETARY FUND BALANCE - END
OF YEAR 439,424$ 471,724 $ 485,697 $ 13,973 $

2.a
Packet Pg. 218
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
ViTEP SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(131)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 289,422$ 289,422 $ 289,422 $ - $

RESOURCES (INFLOWS)
Charges for Services - 24,000 47,866 23,866 Investment Income - 8,200 17,659 9,459 Amounts Available for
Appropriations 289,422 321,622 354,947 33,325

BUDGETARY FUND BALANCE - END
OF YEAR 289,422$ 321,622 $ 354,947 $ 33,325 $

2.a
Packet Pg. 219
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(132)

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

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR (1,276,520)$ (1,276,520) $ (1,276,520) $ - $

RESOURCES (INFLOWS)
Intergovernmental 168,000 36,026,168 1,932,692 (34,093,476) Investment Income - 4,000 22,283 18,283 Amounts Available for
Appropriations (1,108,520) 34,753,648 678,455 (34,075,193)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government - 1,178,498 11,647 1,166,851 Public Safety 138,000 3,139,021 566,671 2,572,350 Capital Outlay - 28,499,381 612,786 27,886,595 Transfers Out - 1,516,644 92,047 1,424,597 Total Charges to Appropriations 138,000 34,333,544 1,283,151 33,050,393

BUDGETARY FUND BALANCE (DEFICIT) -
END OF YEAR (1,246,520)$ 420,104 $ (604,696) $ (1,024,800) $

2.a
Packet Pg. 220
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(133)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 957,716$ 957,716 $ 957,716 $ - $

RESOURCES (INFLOWS)
Investment Income - 24,100 94,876 70,776 Amounts Available for
Appropriations 957,716 981,816 1,052,592 70,776

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government - - 32,273 (32,273) Debt Service:

Interest and Fiscal Charges - - 43,500 (43,500) Total Charges to Appropriations - - 75,773 (75,773)

BUDGETARY FUND BALANCE - END
OF YEAR 957,716$ 981,816 $ 976,819 $ (4,997) $

2.a
Packet Pg. 221
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

PUBLIC FINANCING AUTHORITY DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2024

(134)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 1,048,775$ 1,048,775 $ 1,048,775 $ - $

RESOURCES (INFLOWS)
Investment Income - 33,000 52,006 19,006 Transfers In 898,345 898,345 898,345 - Amounts Available for
Appropriations 1,947,120 1,980,120 1,999,126 19,006

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government 5,062 5,062 5,062 - Debt Service:

Principal Retirement 580,000 580,000 580,000 - Interest and Fiscal Charges 318,345 318,345 318,345 - Total Charges to Appropriations 903,407 903,407 903,407 -

BUDGETARY FUND BALANCE - END
OF YEAR 1,043,713$ 1,076,713 $ 1,095,719 $ 19,006 $

2.a
Packet Pg. 222
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

TAXABLE PENSION FUNDING BONDS DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2024

(135)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 2,003,817$ 2,003,817 $ 2,003,817 $ - $

RESOURCES (INFLOWS)
Investment Income - 50,000 100,000 50,000 Transfers In 2,314,160 2,314,160 2,310,548 (3,612) Amounts Available for
Appropriations 4,317,977 4,367,977 4,417,977 50,000

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

General Government 3,212 3,212 3,212 - Debt Service:

Principal Retirement 1,500,000 1,500,000 1,500,000 - Interest and Fiscal Charges 698,560 698,560 698,560 - Total Charges to Appropriations 2,201,772 2,201,772 2,201,772 -

BUDGETARY FUND BALANCE - END
OF YEAR 2,116,205$ 2,166,205 $ 2,216,205 $ 50,000 $

2.a
Packet Pg. 223
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024

(136)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 461,548$ 461,548 $ 461,548 $ - $

RESOURCES (INFLOWS)
Investment Income (Loss) - 121,300 358,376 237,076 Transfers In - 3,123,178 210,149 (2,913,029) Amounts Available for
Appropriations 461,548 3,706,026 1,030,073 (2,675,953)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay - 3,846,569 375,648 3,470,921

BUDGETARY FUND BALANCE - END
OF YEAR 461,548$ (140,543) $ 654,425 $ 794,968 $

2.a
Packet Pg. 224
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

DEVELOPMENT FEES CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024

(137)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 13,455,353$ 13,455,353 $ 13,455,353 $ - $

RESOURCES (INFLOWS)
Charges for Services 560,000 1,323,000 1,371,160 48,160 Investment Income 2,000 390,100 814,389 424,289 Miscellaneous 120,000 120,000 118,804 (1,196) Amounts Available for
Appropriations 14,137,353 15,288,453 15,759,706 471,253

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Public Works - 24,000 80 23,920 Capital Outlay 400,000 6,547,183 470,417 6,076,766 Transfers Out - 622,006 24,789 597,217 Total Charges to Appropriations 400,000 7,193,189 495,286 6,697,903

BUDGETARY FUND BALANCE - END
OF YEAR 13,737,353$ 8,095,264 $ 15,264,420 $ 7,169,156 $

2.a
Packet Pg. 225
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

COLTON CROSSING CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024

(138)

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

BUDGETARY FUND BALANCE - BEGINNING
OF YEAR 765,988$ 765,988 $ 765,988 $ - $

RESOURCES (INFLOWS)
Investment Income - 21,600 45,250 23,650 Amounts Available for
Appropriations 765,988 787,588 811,238 23,650

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Capital Outlay - 12,026 5,080 6,946 Total Charges to Appropriations - 12,026 5,080 6,946

BUDGETARY FUND BALANCE - END
OF YEAR 765,988$ 775,562 $ 806,158 $ 30,596 $

2.a
Packet Pg. 226
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

INTERNAL SERVICE FUNDS
JUNE 30, 2024

(139)

Internal Service Funds. Finance and account for goods and services provided by one City department to other City departments, or to other governm ents, on a cost-reimbursement basis, including depreciation. The City used the following Internal Service Funds:

Facility and Equipment Maintenance Fund – To account for the City’s buildings maintenance and utilities costs.

Information Services Fund – To account for the City’s information services.

Insurance Fund – To account for the City’s liabilities for claims and judgments.

Automotive Shop Fund – To account for the City’s fleet maintenance and replacement.

2.a
Packet Pg. 227
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2024

(140)

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

Cash and Investments 1,950,156 $ 1,293,830 $ 13,550,404 $ 2,923,397 $ 19,717,787 $ Receivables:

Accounts 233 - - - 233 Accrued Interest 26,081 17,223 145,033 38,621 226,958 Prepaid Items - - 300 - 300 Total Current Assets 1,976,470 1,311,053 13,695,737 2,962,018 19,945,278 Capital Assets:

Capital Assets, Not Being Depreciated 39,252 - - 113,957 153,209 Capital Assets, Net of
Accumulated Depreciation 1,661,089 423,928 - 180,042 2,265,059 Net Capital Assets 1,700,341 423,928 - 293,999 2,418,268 Total Assets 3,676,811 1,734,981 13,695,737 3,256,017 22,363,546

LIABILITIES
Current Liabilities:

Accounts Payable 398,013 34,703 149,556 25,129 607,401 Accrued Compensated Absences 19,653 30,470 - 13,189 63,312 Accrued Claims and Judgments - - 2,055,920 - 2,055,920 Total Current Liabilities 417,666 65,173 2,205,476 38,318 2,726,633 Noncurrent Liabilities:

Accrued Compensated Absences 7,209 13,092 - - 20,301 Accrued Claims and Judgments - - 4,174,153 - 4,174,153 Total Noncurrent Liabilities 7,209 13,092 4,174,153 - 4,194,454 Total Liabilities 424,875 78,265 6,379,629 38,318 6,921,087

NET POSITION
Net Investment In Capital Assets 1,661,296 423,928 - 293,999 2,379,223 Unrestricted 1,590,640 1,232,788 7,316,108 2,923,700 13,063,236 Total Net Position 3,251,936 $ 1,656,716 $ 7,316,108 $ 3,217,699 $ 15,442,459 $

2.a
Packet Pg. 228
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

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

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024

(141)

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

OPERATING REVENUES
Sales and Service Charges 1,289,073 $ 989,598 $ 10,435,647$ 817,639 $ 13,531,957$ Miscellaneous - 597 95,790 - 96,387 Total Operating Revenues 1,289,073 990,195 10,531,437 817,639 13,628,344

OPERATING EXPENSES
Salaries and Benefits 572,016 446,617 409,751 332,305 1,760,689 Maintenance and Operations 571,865 609,346 2,955,641 338,993 4,475,845 Contractual Services 98,169 22,800 119,301 - 240,270 Claims and Benefits - - 800,181 - 800,181 Depreciation Expense 123,587 73,951 - 35,256 232,794 Total Operating Expenses 1,365,637 1,152,714 4,284,874 706,554 7,509,779 OPERATING INCOME (LOSS) (76,564) (162,519) 6,246,563 111,085 6,118,565

NONOPERATING EXPENSE
Net Investment Income 119,028 81,554 463,121 156,705 820,408 INCOME (LOSS) BEFORE TRANSFERS 42,464 (80,965) 6,709,684 267,790 6,938,973 TRANSFERS OUT (19,735) (20,251) (17,413) (14,446) (71,845) CHANGE IN NET POSITION 22,729 (101,216) 6,692,271 253,344 6,867,128 Net Position - Beginning of Year 3,229,207 1,757,932 623,837 2,964,355 8,575,331 NET POSITION - END OF YEAR 3,251,936$ 1,656,716 $ 7,316,108 $ 3,217,699 $ 15,442,459 $

2.a
Packet Pg. 229
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024

(142)

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

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 1,288,840 $ 990,195 $ 10,604,409$ 817,638 $ 13,701,082$ Cash Paid to Suppliers for Goods and Services (462,820) (791,873) (5,269,911) (331,819) (6,856,423) Cash Paid to Employees for Services (569,070) (441,353) (409,748) (329,718) (1,749,889) Net Cash Provided (Used) by
Operating Activities 256,950 (243,031) 4,924,750 156,101 5,094,770

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Paid to Other Funds (19,735) (20,251) (17,413) (14,446) (71,845) Net Cash Used by Noncapital
Financing Activities (19,735) (20,251) (17,413) (14,446) (71,845)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (608,765) (242,046) - - (850,811) Net Cash Used by Capital and
Related Financing Activities (608,765) (242,046) - - (850,811)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 106,176 74,414 357,270 133,707 671,567 Net Cash Provided by
Investing Activities 106,176 74,414 357,270 133,707 671,567

NET CHANGE IN CASH AND CASH
EQUIVALENTS (265,374) (430,914) 5,264,607 275,362 4,843,681 Cash and Cash Equivalents - Beginning of Year 2,215,530 1,724,744 8,285,797 2,648,035 14,874,106

CASH AND CASH EQUIVALENTS -
END OF YEAR 1,950,156$ 1,293,830 $ 13,550,404 $ 2,923,397 $ 19,717,787 $

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

BY OPERATING ACTIVITIES
Operating Income (Loss) (76,564) $ (162,519)
$ 6,246,563 $ 111,085 $ 6,118,565 $
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation Expense 123,587 73,951 - 35,256 232,794 Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (233) - 72,972 - 72,739 (Increase) Decrease in Prepaid Assets - - (300) - (300) Increase (Decrease) in Accounts Payable 207,214 (159,726) (166,795) 7,172 (112,135) Increase (Decrease) in Compensated Absences 2,946 5,263 - 2,588 10,797 Increase (Decrease) in Claims and Judgments - - (1,227,690) - (1,227,690) Net Cash Provided (Used) by
Operating Activities 256,950 $ (243,031) $ 4,924,750 $ 156,101 $ 5,094,770 $

2.a
Packet Pg. 230
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

CUSTODIAL FUNDS
JUNE 30, 2024

(143)

Custodial Funds. Are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. Custodial Funds operate as a clearing mechanism. Cash resources are collected, held for a brief period and then distributed to the proper recipients. The City has a fiduciary responsibility for the assets, which it does not own. The following are classified as custodial funds in the financial statements.

Assessment Districts Fund – To account for funds collected from Assessment Districts.

Evidence Fund – To account for monies seized by police as evidence.

2.a
Packet Pg. 231
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2024

(144)

Assessment
Districts Evidence
Fund Fund Total
ASSETS
Cash and Investments 291,832 $ 286,704 $ 578,536 $ Receivables:

Taxes 6,584 - 6,584 Accrued Interest 4,241 3,778 8,019 Total Assets 302,657 290,482 593,139

LIABILITIES
Accounts Payable 20,039 - 20,039 Due to Other Governments 37,763 - 37,763 Total Liabilities 57,802 - 57,802

NET POSITION
Held for Other Individuals and Organizations 244,855 290,482 535,337 Total Net Position 244,855 $ 290,482 $ 535,337 $

2.a
Packet Pg. 232
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2024

(145)

Assessment
Districts Evidence
Fund Fund Total

ADDITIONS
Taxes 543,085 $ - $ 543,085$ Interest and Change in Fair Value of Investments 13,122 15,764 28,886 Total Additions 556,207 15,764 571,971

DEDUCTIONS
Administrative Expenses 157,604 - 157,604 Professional Services 210,164 - 210,164 Utilities 94,824 - 94,824
Principal Payment 29,991 - 29,991 Interest Expense 1,941 - 1,941
Total Deductions 494,524 - 494,524 CHANGE IN NET POSITION 61,683 15,764 77,447 Net Position - Beginning of Year 183,172 274,718 457,890 NET POSITION - END OF YEAR 244,855$ 290,482 $ 535,337 $

2.a
Packet Pg. 233
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2024

(146)

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

Cemetery Fund – To account for donations made to the City for the Cemetery.

Successor Agency of the Former RDA – To account for the assets and liabilities of the former redevelopment agency and its allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former redevelopment agency are paid in full and assets have been liquidated.

2.a
Packet Pg. 234
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2024

(147)

Successor
Cemetery Agency of the
Fund Former RDA Total
ASSETS
Cash and Investments 1,081,273 $ 1,870,258 $ 2,951,531 $ Receivables:

Accrued Interest 14,255 24,642 38,897 Restricted Assets:

Cash and Investments 342,661 - 342,661 Total Assets 1,438,189 1,894,900 3,333,089

LIABILITIES
Accrued Interest - 129,849 129,849 Deposits Payable 230,799 - 230,799 Long-Term Liabilities:

Due in One Year - 1,120,000 1,120,000 Due in More than One Year - 6,767,136 6,767,136 Total Liabilities 230,799 8,016,985 8,247,784

NET POSITION
Held for Other Individuals and Organizations 1,207,390 (6,122,085) (4,914,695) Total Net Position 1,207,390 $ (6,122,085) $ (4,914,695) $

2.a
Packet Pg. 235
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL PRIVATE-PURPOSE TRUST FUNDS
YEAR ENDED JUNE 30, 2024

(148)

Successor
Cemetery Agency of the
Fund Former RDA Total

ADDITIONS
Contributions 32,835 $ - $ 32,835$ Taxes - 1,437,065 1,437,065 Interest and Change in Fair Value of Investments 61,376 91,692 153,068 Total Additions 94,211 1,528,757 1,622,968

DEDUCTIONS
Administrative Expenses - 5,450 5,450 Interest Expense - 229,083 229,083 Total Deductions - 234,533 234,533 CHANGE IN NET POSITION 94,211 1,294,224 1,388,435 Net Position - Beginning of Year 1,113,179 (7,416,309) (6,303,130) NET POSITION - END OF YEAR 1,207,390$ (6,122,085) $ (4,914,695) $

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

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STATISTICAL SECTION
(UNAUDITED)

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2024

(151)

This part of the City of Cerritos’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents
Pages

Financial Trends 153 – 158
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time

Revenue Capacity 159
– 165
These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property and sales taxes.

Debt Capacity 166
– 169
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information 170
– 171
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments.

Operating Information 172
– 174
These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. The City implemented Statement 34 in 2004; schedules presenting government wide information include information beginning in that year.

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(153)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
Net I nvestm ent in capital assets 46,899,623$ 56,026,601 $ 56,241,790 $ 57,614,290 $ 60,205,081 $ 65,722,642 $ 68,923,235 $ 70,778,736 $ 76,742,701 $ 83,306,965 $ Restricted 16,468,723 14,170,252 17,069,028 18,434,877 25,567,031 27,951,561 27,387,272 30,596,051 32,540,882 35,704,070 Unrestricted (80,117,919) (81,162,735) (78,864,619) (94,872,475) (92,639,601) (94,410,149) (87,788,475) (85,682,326) (72,472,317) (65,961,637) Total governmental activities net position (16,749,573)$ (10,965,882) $ (5,553,801) $ (18,823,308) $ (6,867,489) $ (735,946) $ 8,522,032 $ 15,692,461 $ 36,811,266 $ 53,049,398 $ Business-type activities
Net I nvestm ent in capital assets 44,938,671$ 53,428,783 $ 54,049,081 $ 67,086,623 $ 67,651,026 $ 68,820,782 $ 67,274,292 $ 72,029,871 $ 83,227,323 $ 81,579,018 $ Restricted 6,099,568 5,566,576 12,138,780 3,932,103 3,982,965 4,072,437 3,677,027 3,373,481 3,722,910 3,879,459 Unrestricted 52,154,989 51,134,616 49,189,201 47,080,519 56,113,738 61,100,251 70,685,437 68,030,129 60,579,624 84,182,313 Total business-type activities net position 103,193,228$ 110,129,975 $ 115,377,062 $ 118,099,245 $ 127,747,729 $ 133,993,470 $ 141,636,756 $ 143,433,481 $ 147,529,857 $ 169,640,790 $ Primary government
Net I nvestm ent in capital assets 91,838,294 $ 109,455,384 $ 110,290,871 $ 124,700,913 $ 127,856,107 $ 134,543,424 $ 136,197,527 $ 142,808,607 $ 159,970,024 $ 164,885,983 $ Restricted 22,568,291 19,736,828 29,207,808 22,366,980 29,549,996 32,023,998 31,064,299 33,969,532 36,263,792 39,583,529 Unrestricted (27,962,930) (30,028,119) (29,675,418) (47,791,956) (36,525,863) (33,309,898) (17,103,038) (17,652,197) (11,892,693) 18,220,676 Total primary government net position 86,443,655 $ 99,164,093 $ 109,823,261 $ 99,275,937 $ 120,880,240 $ 133,257,524 $ 150,158,788 $ 159,125,942 $ 184,341,123 $ 222,690,188 $ N otes: Per GASB 63, Net Assets have been replaced w ith Net Position for fiscal year 2013.

All descriptions have been changed to conform w ith this requirement.

The City began to report accrual information w hen it implemented GASB Statement 34 in fiscal year 2004 Fiscal Year

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(154)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
E xpenses
Governmental activities:

General government 694,457$ 1,435,968 $ 2,827,380 $ 3,323,729 $ 2,575,487 $ 4,231,203 $ 3,571,304 $ (329,592) $ 3,248,213 $ 5,893,460 $ Community Services 5,914,164 6,523,836 6,406,777 6,327,804 7,188,321 7,328,898 7,608,513 7,766,888 9,151,972 9,422,873 Public Works 6,113,896 7,588,622 6,946,020 6,171,521 6,011,976 6,502,500 6,685,834 6,696,575 7,656,839 8,235,021 Public Safety 23,699,722 25,583,592 27,803,253 28,429,019 31,119,615 33,887,766 35,333,948 40,062,962 26,558,039 43,218,277 Interest on long-term debt 2,232,834 2,151,410 2,067,915 2,148,554 1,773,988 1,744,808 1,659,041 1,604,186 1,509,189 1,416,401 Total governmental activities expenses 38,655,073 43,283,428 46,051,345 46,400,627 48,669,387 53,695,175 54,858,640 55,801,019 48,124,252 68,186,032 Business-type activities:

Elec tr ic 49,403,697 50,351,428 51,120,030 48,785,845 51,029,071 47,901,891 48,765,106 53,748,647 63,341,630 61,161,193 Water 8,386,330 7,536,133 8,347,920 8,728,560 9,005,710 9,725,277 9,898,697 8,836,901 10,332,048 12,129,931 Wastew ater 8,024,680 8,877,863 9,392,971 9,410,998 9,365,512 10,104,456 9,664,981 9,933,047 10,338,304 11,456,166 Total business-type activities expenses 65,814,707 66,765,424 68,860,921 66,925,403 69,400,293 67,731,624 68,328,784 72,518,595 84,011,982 84,747,290 Total primary government expenses 104,469,780 $ 110,048,852 $ 114,912,266 $ 113,326,030 $ 118,069,680 $ 121,426,799 $ 123,187,424 $ 128,319,614 $ 132,136,234 $ 152,933,322 $ Program Revenues
Governmental activities:

Charges for services 6,477,891$ 5,896,532 $ 9,000,436 $ 8,344,863 $ 9,909,845 $ 9,471,119 $ 9,203,272 $ 8,269,683 $ 8,702,663 $ 11,355,047 $ Operating contributions and grants 1,264,744 1,340,325 2,885,802 3,308,845 3,121,417 2,717,641 5,414,145 6,833,007 7,690,358 4,972,533 Capital contributions and grants 5,222,009 11,366,710 2,860,446 3,974,921 7,642,045 6,028,770 4,609,335 4,156,484 5,210,696 5,221,506 Total governmental activities program revenues 12,964,644 18,603,567 14,746,684 15,628,629 20,673,307 18,217,530 19,226,752 19,259,174 21,603,717 21,549,086 Business-type activities:

Charges for services:

Electric 61,977,859 62,806,729 64,768,274 65,166,954 65,238,492 61,775,835 63,818,932 63,122,470 71,519,700 89,721,748 Water 9,849,772 9,236,478 11,370,396 12,722,986 13,273,647 13,022,199 13,560,186 13,528,013 13,178,739 13,452,049 Wastew ater 10,124,146 9,395,918 10,183,882 9,944,984 9,833,469 9,898,411 10,696,082 9,396,533 10,334,528 9,985,985 Operating grants and contributions - - - - - - - - 73,800 256,200 Total business-type activities program revenues 81,951,777 81,439,125 86,322,552 87,834,924 88,345,608 84,696,445 88,075,200 86,047,016 95,106,767 113,415,982 Total primary government program revenues 94,916,421 $ 100,042,692 $ 101,069,236 $ 103,463,553 $ 109,018,915 $ 102,913,975 $ 107,301,952 $ 105,306,190 $ 116,710,484 $ 134,965,068 $ Fiscal Year

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(155)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
N et (E xpense)/R evenue
Governmental activities (25,690,429) $ (24,679,861) $ (31,304,661) $ (30,771,998) $ (27,996,080) $ (35,477,645) $ (35,631,888) $ (36,541,845) $ (26,520,535) $ (46,636,946) $ Business-type activities 16,137,070 14,673,701 17,461,631 20,909,521 18,945,315 16,964,821 19,746,416 13,528,421 11,094,785 28,668,692 Total primary government net expense (9,553,359) $ (10,006,160) $ (13,843,030) $ (9,862,477) $ (9,050,765) $ (18,512,824) $ (15,885,472) $ (23,013,424) $ (15,425,750) $ (17,968,254) $ General Revenues and Other Changes in Net Position
Governmental activities:

Taxes
Property taxes 8,553,676$ 9,091,011 $ 9,202,416 $ 9,718,702 $ 10,693,887 $ 11,416,280 $ 12,666,201 $ 13,347,412 $ 15,142,416 $ 16,196,157 $ Sales taxes 7,858,489 8,499,869 9,111,126 9,360,121 11,263,771 10,672,833 13,630,270 14,143,702 16,432,934 23,497,844 Other taxes 1,952,231 2,049,089 2,518,622 2,867,325 2,969,762 3,008,167 3,703,290 3,907,479 3,915,070 3,740,192 M otor vehicle in lieu - - 23,900 28,361 25,788 43,048 39,692 62,612 55,169 66,482 Use of money and property 1,953,756 2,119,057 1,934,110 1,930,035 3,121,914 3,115,824 1,728,740 894,619 3,163,201 7,550,599 Other 470,125 463,315 643,118 462,857 315,652 513,297 914,307 295,235 557,609 206,088 Transfers 7,888,680 8,072,681 12,910,188 13,252,825 11,561,125 12,841,494 12,207,366 11,061,215 9,061,987 11,069,082 Extraordinary gain (loss) 4,991,938 - 575,630 - - - - - - - Total governmental activities 33,668,895 30,295,022 36,919,110 37,620,226 39,951,899 41,610,943 44,889,866 43,712,274 48,328,386 62,326,444 Business-type activities:

Use of money and property 248,948 335,727 425,594 740,256 2,261,794 2,119,913 104,236 (670,481) 2,063,578 5,059,957 Other 4,000 - 123,233 76,418 2,500 2,500 - - - - Transfers (7,888,680) (8,072,681) (12,910,188) (13,252,825) (11,561,125) (12,841,494) (12,207,366) (11,061,215) (9,061,987) (11,069,082) Special Item (4,991,938) - - - - - Total business-type activities (12,627,670) (7,736,954) (12,361,361) (12,436,151) (9,296,831) (10,719,081) (12,103,130) (11,731,696) (6,998,409) (6,009,125) Total primary government 21,041,225 $ 22,558,068 $ 24,557,749 $ 25,184,075 $ 30,655,068 $ 30,891,862 $ 32,786,736 $ 31,980,578 $ 41,329,977 $ 56,317,319 $ Change in Net Position
Governmental activities 7,978,466 5,615,161 5,614,449 6,848,228 11,955,819 6,133,298 9,257,978 7,170,429 21,807,851 15,689,498 Business-type activities 3,509,400 6,936,747 5,100,270 8,473,370 9,648,484 6,245,740 7,643,286 1,796,725 4,096,376 22,659,567 Total primary government 11,487,866 $ 12,551,908 $ 10,714,719 $ 15,321,598 $ 21,604,303 $ 12,379,038 $ 16,901,264 $ 8,967,154 $ 25,904,227 $ 38,349,065 $ Note s Per GASB 63, Net Assets have been replaced w ith Net Position for fiscal year 2013.

All descriptions have been changed to conform w ith this requirement.

Fis cal Ye ar

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(157)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable 176,275$ 174,830 $ 188,203 $ 177,457 $ 168,716 $ 272,863 $ 198,001 $ 206,628 $ 347,650 $ 382,249 $ Restricted - - - - - - - - - - Committed 650,000 250,000 10,000 9,626,244 14,708,973 19,454,429 28,913,975 29,902,238 32,983,270 40,623,129 Unassigned 6,164,277 4,271,446 9,927,323 5,543,889 6,290,763 6,855,895 8,578,560 12,162,544 11,825,266 12,791,400 Total general fund 6,990,552 $ 4,696,276 $ 10,125,526 $ 15,347,590 $ 21,168,452 $ 26,583,187 $ 37,690,536 $ 42,271,410 $ 45,156,186 $ 53,796,778 $ All Other Governmental Funds
Nonspendable 4,441$ - $ - $ - $ - $ - $ - $ - $ - $ - $ Restricted:

Reported in:

Special revenue funds 6,753,755 2,543,762 2,158,316 2,111,033 2,128,718 2,352,356 9,842,460 2,344,712 2,415,101 3,578,075 Capital projects funds 4,838,534 7,182,195 10,698,667 13,036,149 20,110,852 21,899,172 14,132,450 24,567,489 25,208,723 27,905,215 Debt service funds 4,876,434 4,444,295 4,212,045 3,177,656 2,548,244 2,665,895 2,761,977 2,857,868 3,052,592 3,311,924 Unassigned (18,741) (887,620) (158,625) (33,768) (680,426) (519,148) (577,288) (1,086,476) (1,274,171) (684,174) Total all other governmental funds 16,454,423 $ 13,282,632 $ 16,910,403 $ 18,291,070 $ 24,107,388 $ 26,398,275 $ 26,159,599 $ 28,683,593 $ 29,402,245 $ 34,111,040 $ Fiscal Year

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(158)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Re ve nue s
Taxes (see Schedule 6) 18,644,819$ 19,992,200 $ 21,374,816 $ 22,920,786 $ 25,534,177 $ 25,705,585 $ 30,621,368 $ 32,037,551 $ 36,124,993 $ 44,067,772 $ Licenses and permits 1,568,458 1,532,839 2,158,020 2,122,915 2,456,053 2,210,285 2,253,754 2,090,893 2,404,931 3,138,588 Intergovernmental 9,027,405 6,695,110 6,750,490 8,130,222 7,826,458 7,293,588 10,845,565 11,057,705 14,088,005 12,828,669 Charges for services 2,286,659 2,863,695 5,338,021 4,415,283 5,284,006 4,942,692 4,222,825 2,942,440 3,339,237 4,723,159 Use of money and property 1,838,400 2,081,510 1,841,970 1,808,418 2,720,043 2,791,998 1,811,762 1,023,529 3,063,549 6,681,538 Fines and fortfeitures 326,266 257,167 324,052 293,338 668,746 528,895 355,974 578,763 636,057 857,292 Contributions 100,000 50,000 50,000 25,000 75,000 - - 673,497 18,108 - Miscellaneous 426,201 344,447 1,400,485 584,222 3,587,943 1,189,027 2,264,629 1,050,118 1,155,443 518,723 Total revenues 34,218,208 33,816,968 39,237,854 40,300,184 48,152,426 44,662,070 52,375,877 51,454,496 60,830,323 72,815,741 E xpenditures
General government 1,657,504 1,620,270 1,734,529 321,900 (217,498) 991,683 1,959,697 1,344,653 1,905,690 2,265,935 Community services 5,758,428 6,423,695 6,242,637 6,392,928 7,065,151 7,145,490 7,479,199 7,745,898 8,994,497 9,753,558 Public w orks 3,854,359 6,123,692 4,965,789 5,003,419 6,496,037 4,259,048 4,664,991 4,577,073 5,170,665 5,603,444 Public safety 23,994,482 24,812,941 24,887,153 26,903,919 28,053,672 28,420,527 32,002,838 36,521,459 36,854,959 41,839,315 Capital outlay 6,203,435 4,455,227 2,304,395 1,875,917 2,412,236 6,049,130 4,534,453 2,039,693 9,325,777 7,809,858 Debt service
Principal retirement 2,382,575 2,438,015 2,283,384 2,807,618 2,150,825 1,553,312 1,707,772 1,891,330 2,067,380 2,304,735 Interest and fiscal charges 2,014,724 1,919,585 1,815,802 1,979,476 1,495,033 1,433,265 1,425,673 1,351,728 1,343,116 1,068,467 Total expenditures 45,865,507 47,793,425 44,233,689 45,285,177 47,455,456 49,852,455 53,774,623 55,471,834 65,662,084 70,645,312 Excess (Deficiency) of revenues
over (under) expenditures (11,647,299) (13,976,457) (4,995,835) (4,984,993) 696,970 (5,190,385) (1,398,746) (4,017,338) (4,831,761) 2,170,429 Other F inancing Sources (U ses)

Lease Liabilities - - - - 637,877 - - - - 38,031 Transfers in - 13,354,411 17,356,134 17,061,464 15,155,093 15,519,532 16,155,531 13,984,689 12,142,799 14,022,710 Transfers out - (5,232,594) (4,396,281) (5,473,740) (4,852,760) (2,621,770) (3,888,112) (2,862,483) (3,018,563) (2,881,783) Proceeds from sale of capital assets - 220,043 953,001 - - - - - - - Total other financing
sources (uses) - 8,341,860 13,912,854 11,587,724 10,940,210 12,897,762 12,267,419 11,122,206 9,124,236 11,178,958 Net change in
fund balances (11,647,299) $ (5,634,597) $ 8,917,019 $ 6,602,731 $ 11,637,180 $ 7,707,377 $ 10,868,673 $ 7,104,868 $ 4,292,475 $ 13,349,387 $ Debt service as a percentage
of noncapital expenditures 11.1% 10.1% 9.8% 11.4% 8.6% 6.8% 6.5% 6.3% 6.1% 5.4% Fiscal Year

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Packet Pg. 246
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)

(159)

E stimated
Total Taxable Total Actual
Fiscal Residential Commercial Industrial Other Assessed Tax Taxable Year Property Property Property Property Value Rate Value 2015 1,691,422 380,700 299,029 473,308 2,844,459 1.4727 2,793,113 2016 1,808,514 394,965 331,818 470,056 3,005,353 1.5573 2,896,554 2017 1,938,923 414,150 363,719 471,394 3,188,186 1.5216 3,066,251 2018 2,043,492 446,500 421,108 506,210 3,417,311 1.4804 3,289,462 2019 2,155,768 467,165 471,400 577,085 3,671,418 1.4945 3,540,801 2020 2,347,060 492,141 575,382 517,016 3,931,600 1.4820 3,770,650 2021 2,466,823 501,153 676,381 543,226 4,187,582 1.4946 4,019,966 2022 2,626,441 550,345 798,984 697,463 4,673,233 1.4833 4,501,962 2023 2,839,655 572,325 1,035,767 781,790 5,229,537 1.4030 5,016,941 2024 3,047,054 615,651 1,082,068 855,808 5,600,581 1.4583 5,386,428 *Source: San Bernardino County Assessor 2023/24 Combined Tax Rolls. HdL, Coren & Cone

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Packet Pg. 247
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

PROPERTY TAX RATES

ALL OVERLAPPING GOVERNMENTS

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

(160)

San Bernardino San Bernardino City's Share
Fiscal Basic Colton Unified Rialto Unified Community Unified School San Bernardino Total D&O of 1% Levy per Total Direct Year Levy (1) School District School District College Board Bond Valley Water Tax Rate (2) Prop 13 (3) Rate (4) 2015 1.0000 0.0973 0.0655 0.0393 0.1081 0.1625 1.4727 0.16801 0.16646 2016 1.0000 0.1169 0.1194 0.0403 0.1182 0.1625 1.5573 0.16801 0.16642 2017 1.0000 0.1454 0.0992 0.0350 0.0795 0.1625 1.5216 0.16801 0.16644 2018 1.0000 0.0939 0.0957 0.0376 0.1007 0.1525 1.4804 0.16801 0.16637 2019 1.0000 0.1116 0.0771 0.0407 0.1126 0.1525 1.4945 0.16801 0.16622 2020 1.0000 0.1016 0.0848 0.0562 0.0969 0.1425 1.4820 0.16801 0.16627 2021 1.0000 0.1031 0.0805 0.0651 0.1034 0.1425 1.4946 0.16801 0.16160 2022 1.0000 0.1081 0.0829 0.0534 0.1089 0.1300 1.4833 0.16801 0.15871 2023 1.0000 0.0656 0.0746 0.0450 0.0878 0.1300 1.4030 0.16801 0.16005 2024 1.0000 0.0687 0.1556 0.0452 0.0688 0.1200 1.4583 0.16801 0.15996 Source: San Bernardino County Assessor's Office, Tax Rate Table, HdL, Coren & Cone N otes:
(1)
(2)
(3)
(4) Total Direct Rate is the w eighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

City's Share of 1% Levy is based on the City's share of the general fund tax rate area w ith the largest net taxable value w ithin the City. ERAF general fund tax shifts may not be included in tax ratio figures.

In 1978, California voters passed Proposition 13 w hich set the property tax rate at a

1.00% fixed amount. This 1.00% is shared by all taxing agencies for w hich the subject property resides w ithin. In addition to the 1.00% fixed amount, property ow ners are charged taxes as a percentage of assessed property values for the payment of any voter-approved bonds.

Overlapping rates are those of local and county governments that apply to property ow ners w ithin the City. Not all overlapping rates apply to all city property ow ners.

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Packet Pg. 248
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO

(161)

Assessed
Taxpayer Value
Hart Agua Mansa LLC 130,050,000 1 2.41%
DS Grand Terrace Ow ner LLC 103,150,000 2 1.91% Lineage Master RE LLC 100,216,508 3 1.86%
MG District Appartments WTS LLC 91,555,200 4 1.70% Walmart 91,376,783 5 1.70%
LBA RV-Company XI LP 86,269,968 6 1.60%
WSRE CP Colton Ow ner LP 71,400,000 7 1.33%
Fedex Group Package System Inc 67,175,565 8 1.25% Alpha Z LA Industrial 3 LLC 58,650,000 9 1.09% Wanvog Investments LLC 52,280,808 10 0.97% 36,458,118 5 1.31% Ashley Furniture Industries, Inc. 46,261,052 1 1.66% Nova Pointe LLP 40,410,840 2 1.45%
AMB Holding Co. LLC 36,985,826 3 1.32%
Meadow Lane Apartments LLC 36,529,587 4 1.31% Pacific West Management 29,865,801 6 1.07%
CSM Bakery Products NA Inc 24,302,630 7 0.87%
My Montecito III 24,177,652 8 0.87%
Grand Terrace Apartments California 21,653,777 9 0.78% Falcon Colton LLC 19,967,242 10 0.71%
Total 852,124,832 $ 15.82% 316,612,525 $ 11.35% City Total 5,386,427,743 $ 2,793,116,366 $
Source: HdL Coren & Cone (San Bernardino County Assessor 2023/24 Combined Tax Rolls and the SBE Non Unitary Tax Roll) Percentage
of Total City
Assessed
Value
Assessed
Value R ank
20152024
Rank
Percentage
of Total City
Assessed
Value

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Packet Pg. 249
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS

(162)

Fiscal
Year Taxes Levied Collections
E nded for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy 2015 2,653,886 2,590,006 97.59% 145,096 2,735,103 103.06% 2016 2,818,148 2,746,894 97.47% 150,086 2,896,980 102.80% 2017 3,007,413 2,948,120 98.03% 97,962 3,046,082 101.29% 2018 3,251,531 3,208,221 98.67% 122,644 3,330,865 102.44% 2019 3,866,230 3,786,646 97.94% 112,567 3,899,213 100.85% 2020 4,199,560 4,110,313 97.87% 50,650 4,160,963 99.08% 2021 4,208,109 4,434,991 105.39% 69,993 4,504,984 107.05% 2022 4,920,482 4,857,954 98.73% 65,882 4,923,836 100.07% 2023 5,605,287 5,491,110 97.96% 67,755 5,558,865 99.17% 2024 5,969,611 5,853,501 98.05% 74,539 5,928,039 99.30% (1) Data provided by the San Bernardino County Assessor's Office for collection of prior year taxes does not segregate the information by fiscal year. Therefore, the City is unable to provide this information in the above schedule. (2) The Percentage of Levy may exceed 100% if the amounts collected for subsequent years exceed the delinquency. (3) Taxes levied for the fiscal year do not include roll corrections.

Source: County of San Bernardino Auditor-Controller - Property Tax Division Collected within the
Fiscal Year of the Levy Total Collections

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Packet Pg. 250
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

TAXABLE SALES BY CATEGORY

LAST TEN CALENDAR YEARS
(IN THOUSANDS OF DOLLARS)

(163)

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Food Stores 46,641 $ 51,821 $ 48,432 $ 44,015 $ 49,272 $ 48,391 $ 41,426 $ 42,616 $ 43,994 $ 45,502 $ Eating and Drinking Places 114,313 111,567 110,280 86,252 84,418 77,833 73,909 71,469 65,441 59,595 Building Materials 112,036 127,406 118,047 101,079 109,459 145,448 134,653 108,327 86,755 79,713 Auto Dealers and Supplies 302,966 343,339 368,774 337,353 258,448 231,549 214,682 202,686 193,814 178,534 Service Stations 152,018 167,629 134,265 97,740 124,107 108,230 86,994 73,259 77,420 92,531 Other Retail Stores 147,608 165,529 181,580 152,432 150,504 146,398 140,152 151,424 137,254 122,343 All Other Outlets 350,949 395,318 369,645 354,779 273,744 238,180 215,035 189,468 178,787 160,301 Total 1,226,531 $ 1,362,609 $ 1,331,023 $ 1,173,650 $ 1,049,952 $ 996,029 $ 906,851 $ 839,249 $ 783,465 $ 738,519 $ Sources: HdL, Coren & Cone (State of California Board of Equalization, California Department of Tax and Fee Administration, State Controller's Office, The HdL Companies) Note : Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

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Packet Pg. 251
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

DIRECT AND OVERLAPPING SALES TAX RATES

LAST TEN FISCAL YEARS

(164)

Fiscal Year City & Local San Bernardino County
2015 1.00% 0.50%
2016 1.00% 0.50%
2017 1.00% 0.50%
2018 1.00% 0.25%
2019 1.00% 0.25%
2020 1.00% 0.25%
2021 1.00% 0.25%
2022 1.00% 0.25%
2023 1.00% 0.25%
2024 1.00% 0.25%
Sources: California department of Tax & Fee Administration w ebsite On November 8, 2022 the voters passed Measure S w hich became effective April 1, 2023.

Measure S is a one percent transaction and use tax.

Note s : The city sales tax rate may be changed only w ith the approval of the state legislature.

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Packet Pg. 252
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

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

CURRENT YEAR AND NINE YEARS AGO

(165)

2024 2015
Service Stations Service Stations
Service Stations Service Stations
Home Furnishings Service Stations
Used Automotive Dealers Home Furnishings
New Motor Vehicle Dealers New Motor Vehicle Dealers
Trailers/RVs Electrical Equipment
Warehse/Farm/Const. Equip. Used Automotive Dealers
Transportation/Rentals Service Stations
Grocery Stores Warehse/Farm/Const. Equip.

Trailers/RVs Petroleum Prod/Equipment
Trailers/RVs Grocery Stores
Service Stations Trailers/RVs
Service Stations Service Stations
Contractors Trailers/Auto Parts
Food Service Equip./Supplies Trailers/RVs
Family Apparel Service Stations
Building Materials Contractors
Grocery Stores Food Service Equip./Supplies
Repair Shop/Equip. Rentals Family Apparel
Repair Shop/Equip. Rentals Service Stations
Auctioneers Building Materials
Repair Shop/Equip. Rentals Grocery Stores
Service Stations Service Stations
Discount Dept Stores Discount Dept Stores
New Motor Vehicle Dealers New Motor Vehicle Dealers
Sources : State Board of Equalization, California Dept. of Taxes and Fees Admin., State Controller's office, The HdL Companies.

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Packet Pg. 253
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

RATIOS OF OUTSTANDING DEBT BY TYPE

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

(166)

Financing Pension Total Percentage
Fiscal Notes and Authority Obligation Lease Subscription Revenue Term Lease Subscription Primary of Personal Per Year Agreements Bonds Bond Liabilities Liab ilities B onds Loan Liab ilities Liabilities Government Income Capita 2015 2,750 12,275 27,100 770 - 47,245 4,596 - - 94,846 11.6% 1,789 2016 2,631 11,405 26,325 442 - 49,020 6,548 - - 88,971 10.5% 1,668 2017 1,829 10,800 25,151 218 - 52,301 5,777 - - 70,925 8.0% 1,316 2018 1,829 9,730 23,819 111 - 57,196 4,986 - - 73,852 7.8% 1,375 2019 1,829 9,255 22,571 638 - 53,432 4,176 - - 69,330 6.7% 1,275 2020 1,829 8,844 21,821 520 - 52,216 3,345 - - 66,754 6.2% 1,233 2021 1,829 8,322 21,117 397 - 47,823 2,494 - - 60,865 5.3% 1,123 2022 1,829 7,781 20,299 285 - 44,369 1,630 - - 55,894 4.8% 1,042 2023 1,966 7,219 19,365 - 124 40,654 727 78 106 50,874 4.1% 957 2024 1,829 6,633 18,301 22 52 36,917 368 351 54 46,226 3.4% 876 N otes: Details regarding the city's outstanding debt can be found in Note 8 of the notes to the financial statements.

B usiness-type Activities
See Schedule 18 for personal income and population data. These ratios are calculated using personal income and population for the prior calendar year.

Governmental Activities

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Packet Pg. 254
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2024

(167)

2023-24 Assessed Valuation: $5,386,427,743
Total Debt Percent City's Share of Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: June 30, 2024 Applicable (1) June 30, 2024 San Bernardino Valley Joint Community College District $905,105,266 5.321 % $48,160,651 Colton Joint Unified School District 211,632,220 29.677 62,806,094 Rialto Unified School District 153,447,728 5.286 8,111,247 San Bernardino Unified School District 315,584,428 0.006 18,935 TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT $1,585,769,642 $119,096,927 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations $131,565,000 1.691 % $2,224,764 Colton Joint Unified School District General Fund Obligations 5,715,443 29.677 1,696,172 Rialto Unified School District General Fund Obligations 6,599,537 5.286 348,852 San Bernardino City Unified School District Certificates of Participation 56,025,000 0.006 3,362 City of Colton General Fund Obligations 6,580,000 100.000 6,580,000 City of Colton Pension Obligation Bonds 13,714,400 100.000 13,714,400 (2) San Bernardino County Flood Control District Certificates of Participation 37,295,000 1.691 630,658 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $257,494,380 $25,198,208 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies):

City of Colton Tax Allocation Bonds $6,800,000 100.000 % $6,800,000 San Bernardino County Inland Valley Tax Allocation Bonds 209,565,000 1.989 4,168,248 TOTAL OVERLAPPING TAX INCREMENT DEBT $10,968,248
Total Direct Debt $20,294,400
Total Overlapping Debt $134,968,983
Combined Total Debt (2) $155,263,383 (3)
Note:
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

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

Ratios to 2023-24 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.21%
Total Direct Debt ($20,294,400) 0.38%
Combined Total Debt 2.88%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($1,859,776,825):

Total Overlapping Tax Increment Debt 0.59%
Source: Avenu Insights & Analytics
CA Municipal Statistics, Inc.

Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Colton.

This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden bor ne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident—and there fore responsible for repaying the debt—of each overlapping government.

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Packet Pg. 255
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)

(168)

Legal Debt Margin Calculation for Fiscal Year 2024
A ssessed v alue 5,600,581$
Debt limit (15% of assessed value) 840,087
Debt applicable to limit:

General obligation bonds -
Less: Amount set aside for
repayment of general
obligation debt -

Total net debt applicable to limit -
Legal debt margin 840,087$
F iscal Year
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Debt limit 840,087 $ 784,431 $ 700,985 $ 628,137 $ 589,740 $ 550,713 $ 512,597 $ 478,228 $ 450,803 $ 426,669 $ Total net debt applicable to limit - - - - - - - - - - Legal debt margin 840,087 $ 784,431 $ 700,985 $ 628,137 $ 589,740 $ 550,713 $ 512,597 $ 478,228 $ 450,803 $ 426,669 $ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Notes: Under state finance law, the city's outstanding general obligation debt should not exceed 15 percent of total assessed property value.

However, the city has established a more conservative internal limit of no more than 5 percent. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

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Packet Pg. 256
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)

(169)

2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Business Type Activity
Revenue Bonds
Operating Net Income (1) 37,681 16,142 19,445 26,400 27,395 29,232 29,063 23,764 21,765 23,500 Debt Service - Principal 3,440 3,418 3,156 4,095 3,915 3,764 10,386 3,295 3,155 3,030 Debt Service - Interest 1,603 1,753 1,893 2,083 2,264 2,418 2,136 2,218 2,356 2,481 Coverage (2) 7.47 3.12 3.85 4.27 4.43 4.73 2.32 4.31 3.95 4.26 Note s : (1) Net operating income (loss) exclusive of depreciation and connection fees, inclusive of investment revenue. (2) Ratio of revenue to payments against bonds.

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Packet Pg. 257
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS

(170)

Personal Per
Income Capita
Calendar (thousands Personal Unemployment Median
Year Population of dollars) Income Rate Age
2014 53,002 818,139 $ 15,436$ 8.0% 27.9 2015 53,351 850,300 $ 15,937$ 6.5% 27.7 2016 53,879 883,059 $ 16,389$ 5.7% 28.6 2017 53,724 948,500 $ 17,655$ 4.3% 29.6 2018 54,391 1,032,154 $ 18,976$ 4.2% 30.4 2019 54,118 1,073,709 $ 19,840$ 4.0% 30.7 2020 54,198 1,143,578 $ 21,100$ 9.9% 31.4 2021 53,617 1,173,639 $ 21,889$ 7.8% 31.8 2022 53,154 1,248,857 $ 23,495$ 4.3% 31.9 2023 52,778 1,348,894 $ 25,557$ 4.7% 33.2 Source: Population: California State Department of Finance. HdL, Coren & Cone Unemployment Data: California Employment Development Department. HdL, Coren & Cone

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Packet Pg. 258
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA
PRINCIPAL EMPLOYERS – TOP 20

CURRENT YEAR AND NINE YEARS AGO

(171)

Percentage Percentage
of Total City of Total City
Em p lo ye r E mployees Rank E mployment E mployees Rank E mployment Arrow head Regional Medical Center 4,867 1 19.16% 3,300 1 18.69% Colton Joint Unified School District 2,300 2 9.06% 738 4 4.18% Wal-Mart Distribution Center 961 3 3.78%
Ashley Furniture 585 4 2.30% 2,000 2 11.33%
Lineage Logistics 450 5 1.77%
City of Colton 315 6 1.24% 288 7 1.63%
Wal-Mart Supercenter 293 7 1.15% 350 6 1.98%
Reche Canyon Rehabilitation & Health Care Center 235 8 0.93% 350 6 1.98% Chino Valley Ranchers 215 9 0.85%
Stater Bros Market (2 Locations) 182 10 0.72% 250 8 1.42% Kaiser Foundation Health Plan 793 3 4.49%
Best Brands Corporation 500 5 2.83%
Reche Canyon Convalescent Center 200 9 1.13%
Williams Furnace Company 173 10 0.98%
Total 10,403 40.96% 8,942 50.64%
Source: MuniServices, LLC / Avenu Insights & Analytics
2024 2015

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Packet Pg. 259
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS

(172)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
General government
Management services 16 17 17 16 16 16 16 14 12 14 Finance 7 6 7 7 5 7 8 9 7 10 I nform ation system s 3 3 3 3 3 3 3 3 3 3 Planning 6 8 7 6 6 6 7 7 8 9 Building 2 2 2 2 4 3 3 3 3 2 Other 8 10 12 20 23 24 23 24 24 26 Police
Field Officers 47 43 48 49 53 52 52 54 52 51 Support staff 28 25 27 27 29 29 29 27 24 32 Fire
Firefighters and supervisors 41 33 38 38 36 37 37 38 39 46 Support staff 1 1 1 1 - 1 1 2 2 2 Other public w orks
Engineering and administrative 5 4 4 5 6 4 6 6 6 6 Maintenance 23 24 18 19 22 22 21 21 24 25 Redevelopment 2 1 - - - - - - - - Community Services 12 12 12 11 9 8 8 9 9 8 Library 1 1 1 1 1 1 1 1 1 1 Water 19 15 15 14 12 13 14 15 14 17 Wastew ater 16 23 22 22 20 22 22 23 23 25 Electric 40 39 41 41 37 36 35 35 36 38 Total 277 267 275 282 282 284 286 291 287 315 Source: Finance Department
N otes: A full-time employee is scheduled to w ork 2,080 hours per year (including vacation and sick leave).

Actual Full-time E mployees
as of June 30

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS

(173)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
General government
Building permits issued 774 1,170 918 1,072 1,164 856 1,069 895 1,262 1,226 Building inspections conducted 5,137 4,677 3,824 3,861 4,812 3,554 4,486 5,276 6,567 4,639 Police
P hysical arrests 2,094 2,801 2,404 2,597 2,116 1,541 1,547 1,464 1,165 1,076 Parking violations 1,882 3,031 2,219 2,760 4,372 3,304 3,499 4,022 4,524 3,062 Traffic violations 2,875 3,379 1,786 2,576 3,564 1,486 1,206 1,138 1,168 769 Fir e
Emergency responses 6,817 7,048 7,692 7,281 8,035 8,040 8,181 7,961 8,106 8,550 Fires extinguished 262 327 361 476 492 358 570 531 709 733 Inspections 623 743 757 784 798 742 814 1,066 1,007 Other public works
Street resurfacing (lane miles) 1 1 18 7 12 9 21 11 12 12 Potholes repaired 1,700 1,600 1,500 1,600 1,400 1,500 1,664 1,144 1,560 1,040 Parks and recreation
Facility usage permits issued 580 503 387 275 243 236 37 285 366 228 Individual Facility Reservations 780 3,582 3,159 2,068 322 2,414 1,117 3,804 Community center attendance 230,486 220,136 228,493 225,465 230,540 89,454 18,797 26,092 47,905 62,706 Library
Volumes in collection 84,845 84,949 85,725 86,321 84,246 84,319 83,725 84,448 84,904 85,263 Total volumes borrow ed 42,176 36,523 59,087 52,156 53,443 42,754 1,870 38,725 46,711 53,718 Water
New Connections 6 3 3 6 5 24 12 96 35 Water Main Breaks - 2 - 1 1 - 5 3 11 Average daily consumption
(thousands of gallons) 8,600 7,842 8,300 8,700 8,500 9,416 9,800 9,000 6,262 5,100 Peak daily consumption
(thousands of gallons) 11,600 15,302
13,300 11,800 13,100 13,300 16,680 16,810 12,400 10,200 Wastewater
Average daily sew age treatment
(thousands of gallons) 5,055 5,155 4,810 5,022 5,100 5,045 4,988 5,160 5,068 4,815 Ele ct r ic
Average daily consumption (kW) 901,179 1,029,500 1,002,597 1,016,732 977,479 883,282 963,125 992,469 935,467 916,784 Annual peak demand (MW) 84 81 81 87 86 83 88 83 93 98 Sources: Various city departments.

Fiscal Years

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Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR)

CITY OF COLTON, CALIFORNIA

CAPITAL ASSETS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS

(174)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
Police Protection
Stations 1 1 1 1 1 1 1 1 1 1 Substations 1 1 1 1 1 1 1 1 1 1 Patrol units 19 15 21 21 22 24 25 23 23 24 Specialized purpose units 44 42 42 42 44 47 41 42 41 44 Fire Protection
Stations 4 4 4 4 4 4 4 4 4 4 Squad units 2 2 2 2 1 1 1 1 1 1 Engine units 7 7 7 7 8 8 7 7 7 10 Other public works
Streets and alleys - paved (lane miles) 307 307 308 308 308 308 308 308 309 309 Traffic signals 56 56 60 63 63 65 65 67 71 71 Parks and recreation
Acreage 50 50 50 50 50 50 50 50 50 50 Playgrounds 5 5 5 5 5 5 5 5 5 5 Baseball/softball diamonds 11 11 11 11 11 11 11 11 11 11 Soccer/football fields 1 1 1 1 1 1 1 1 1 1 Community centers 4 4 4 4 4 4 4 4 4 4 Sw imming pool 1 1 1 1 1 1 1 1 1 1 Tennis courts 2 2 2 2 2 2 2 2 2 2 Libraries
Central Building 1 1 1 1 1 1 1 1 1 1 Satelite locations 2 2 2 2 1 1 1 1 1 1 Books 84,845 84,949 85,725 86,321 73,827 73,926 73,287 73,990 74,410 74,731 Audiovisual recordings 9,523 9,607 9,727 9,768 10,313 10,393 10,438 10,458 10,494 10,532 Municipal Water Department
Residential meters 9,286 9,485 8,932 9,042 8,945 8,954 9,020 9,253 9,362 10,526 Commercial/industrial meters 1,176 1,196 1,161 1,214 1,164 1,174 1,192 1,224 1,222 1,260 Fire protection meters 179 181 193 206 182 189 186 190 189 193 Water mains (miles) 130 130 130 130 130 130 130 130 130 130 Fire hydrants 1,518 1,518 1,518 1,518 1,525 1,525 1,534 1,539 1,548 1,554 Storage capacity (thousands of gallons) 19,300 19,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 Wastewater
Sanitary sew ers (miles) 178 178 178 178 178 178 178 178 178 178 Storm sew ers (miles)
Treatment capacity (thousands of gallons) 10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,400 Municipal E lectric Department
Residential meters 16,262 16,533 16,599 16,784 15,795 16,956 17,208 17,291 16,818 17,066 Commercial 2,498 2,517 2,528 2,547 2,569 2,580 2,626 2,658 3,276 2,188 Industrial 80 85 86 85 87 96 102 105 123 61 Municipal 247 257 261 267 268 268 272 276 249 232 Distribution lines (miles) 169 170 170 172 175 175 175 175 175 175 Streetlights 5,302 5,320 5,307 5,307 5,323 5,320 5,320 5,320 5,320 5,320 Sources: Various city departments.

Fiscal Years

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Packet Pg. 262
Attachment: Final City of Colton 2024 ACFR (4790 : FY2023-24 ACFR) CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
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INDEP
ENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

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

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council
City of Colton
Colton, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United St ates, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Colton, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City of Colton’s basic financial statements, and have issued our report thereon dated December 16, 2024.

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

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

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

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Packet Pg. 263
Attachment: Final 2024 YB Internal Control Communication (4790 : FY2023-24 ACFR) City Council
City of Colton